01 DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY

001 FUND TO ADDRESS PFAS CONTAMINATION

Chapter 403: EQUIPMENT AND INFRASTRUCTURE GRANTS

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SUMMARY: The 130th Legislature authorized a Fund to Address PFAS Contamination (7 M.R.S.A., Chapter 10-D). Permissible uses include investments in equipment, facilities, and infrastructure to ensure that a commercial farm with land found to be contaminated by PFAS maintains profitability while the commercial farm transitions to an alternative cropping system or implements other modifications to its operations in response to PFAS contamination. Consistent with the legislatively mandated PFAS Fund Implementation Plan, these rules establish the eligibility criteria and administrative procedures for equipment and infrastructure investment grants.

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§ 1. OVERVIEW

Commercial farms that have Department of Agriculture, Conservation and Forestry (DACF) confirmed elevated levels of perfluoroalkyl and polyfluoroalkyl substances (PFAS) may apply to DACF for grant funding for equipment and infrastructure projects that will help the commercial farm modify production methods or transition to the production of new farm products in order to minimize the risk of PFAS contamination.

§ 2. CONSISTENT WITH STATUTE

All terms used in this Chapter shall be defined as indicated in Title 7 M.R.S.A, Chapter 10-B unless specifically provided herein.

§ 3. DEFINITIONS

1. “Business plan” means a document that identifies changes in farm management practices and investments in equipment and property that would increase the profitability and net worth of the farm (vitality). A typical plan identifies ways to increase on-farm income through such methods as improved management practices, direct marketing, and value-added initiatives; and describes current operations and future plans for the business, including but not limited to sections on mission/vision, legal organization, management team, product descriptions, market research, market promotion, customer profiles, financial statements, financial analysis of planned changes in the business, and long-term goals for the business. 
2. “Commercial farm" means a farm that produces any farm product with the intent that the farm product be sold or otherwise disposed of to generate income.  
3. “Equipment” means any tangible and durable property and assets such as machinery, parts, and/or components, that are useful to the operation of a commercial farm (e.g., for planting, cultivating, or harvesting).

1. 4. “Farm product” means those plants and animals useful to humans and includes, but is not limited to, forages and sod crops, grains and food crops, dairy products, poultry and poultry products, bees, livestock and livestock products, and fruits, berries, vegetables, flowers, seeds, grasses, Christmas trees, and other similar products.

5. “Grantee” means the recipient of grant funding for an infrastructure project.

1. 6. “Infrastructure” means physical assets and structures that are generally considered permanent (e.g., a greenhouse or barn).
2. 7. “Perfluoroalkyl and polyfluoroalkyl substances” or “PFAS” has the same meaning as in Title 32, section 1732, subsection 5-A. 
3. 8. “Service provider” means the following entities, including but not limited to: individuals, private organizations, public organizations, and agencies of the State; marketing consultants; accounting firms; business support organizations; farm support organizations; engineering firms; law firms; and other organizations that DACF determines may provide valuable services, such as analyzing markets, developing financial forecasts, and recommending production alternatives for the owner or operator of a commercial farm. 

§ 4. FUNDING

The Fund to Address PFAS Contamination (PFAS Fund) is funded by an appropriation from State general funds as provided by Maine Public Laws, 2021, Chapter 635, and any subsequent appropriations, and, whenever possible, any additional funding that may be available from other sources.

§ 5. ELIGIBILITY

Eligibility for equipment and infrastructure grants from the PFAS Fund is limited to commercial farms operating in Maine (see 7 M.R.S.A. § 320-K(4)(E)). A commercial farm is eligible for an infrastructure grant if:

1. The commercial farm has DACF-confirmed elevated levels of PFAS contamination, defined as
   1. one or more samples of farm products showing PFAS exceeding current Action Levels or deemed of concern by the Maine CDC, and/or
   2. groundwater test results exceeding Maine’s enforceable interim drinking water standard for PFAS until superseded by either Maine’s Maximum Contaminant Level (MCL) for PFAS or a federal MCL for PFAS, whichever is lowest, for wells servicing the farm or fields; and/or
   3. soil test results exceeding any current Maine CDC crop-specific screening level; and
2. The commercial farm has partnered with DACF to investigate the scope of contamination at the farm and has granted ongoing access such that DACF staff are able to develop an understanding of the farm, its PFAS contamination, and potentially a strategy for recovery.

§ 6. REQUIRED DOCUMENTATION

Applicants for an equipment or infrastructure grant must submit the following documentation:

1. A completed DACF application form, as may be amended from time to time.
2. Supporting documentation, such as:
   1. A mandatory business plan that illustrates how the requested equipment or infrastructure will contribute to the farm’s long-term viability;
   2. Building plans and/or engineering drawings; and
   3. Cost estimates from at least two separate vendors.
3. Any additional supporting documentation requested by DACF that DACF determines is necessary to review the request for assistance.
4. A completed State of Maine Vendor Authorization Form.

§ 7. APPLICATION REVIEW

1. 1. Applications will be reviewed by an ad-hoc application review panel that will be established by the DACF Commissioner and, at a minimum, will be composed of DACF PFAS Response staff, and a case-specific expert based on the scope or type of project. (e.g., dairy, water, finance).

1. 1. The role of the application review panel is to advise DACF on the merits of proposals.
   2. Decision-making authority rests with the PFAS Fund director.

1. 2. When a commercial farm requests an equipment or infrastructure grant, DACF will rely on all available information it has compiled on the farm to assess the request. Evaluation criteria, may include but not be limited to the degree to which the farm has been negatively impacted by PFAS, likelihood of success, return on investment, total cost, timing, alternative options, level of risk, producer’s demonstrated lack of available financial capacity, number of other requests for DACF support by the applicant and by other producers, and the farm’s capacity and commitment to continue farming on the impacted property.
2. 43. DACF reserves the right to limit the amount of funding for all requests based on available resources and the evaluation criteria listed above.

§ 8. PAYMENT OPTIONS AND RESTRICTIONS

1. The PFAS Fund will not consider equipment or infrastructure grant requests valued at or below $100,000.

1. 2. DACF may pay for equipment or infrastructure costs directly related to a commercial farm’s response to PFAS contamination.
2. 3. DACF will not pay for a commercial farm’s equipment or infrastructure costs associated with routine operations unrelated to PFAS response.
3. 4. DACF may reimburse a commercial farm for approved expenses or compensate a service provider directly.
4. 5. Where a third-party entity has paid for equipment or infrastructure on behalf of a PFAS-impacted farm and DACF has an existing reimbursement agreement with that third-party entity, DACF is authorized to reimburse the third-party entity according to the same terms as if the payment was made directly to the commercial farm or the service provider.

§ 9. TERMS AND CONDITIONS

By applying for an equipment or infrastructure grant, the applicant agrees to the following conditions:

1. The grantee will continue to ensure that the equipment or infrastructure purchased is maintained in a safe condition and in good repair.
2. DACF has the sole discretion to determine if expenditures are reasonable and prudent, and whether the grantee has complied with these terms and conditions and all applicable laws, rules, and regulations.
3. The State shall have no responsibility for the use, maintenance, or fitness of the equipment or infrastructure.
4. The grantee agrees not to assign, transfer, lease or encumber its rights or obligations under the agreement without DACF’s prior written consent. The grantee shall indemnify, defend, save and hold the State and its employees harmless from and against any claims, losses, liabilities, costs, expenses, damages, or other obligations of any nature in any way arising out of the use, operation, maintenance, or repair of the equipment or infrastructure.
5. The grantee must retain ownership and use the equipment or infrastructure for a period consistent with the relevant recovery period for standard farming assets as depicted in Internal Revenue Service (IRS) Publication 225 (Farmer’s Tax Guide), Table 7-1, Farm Property Recovery Periods; or the grantee must notify DACF in writing within 30 days of any sale, trade, destruction, or abandonment of equipment or infrastructure purchased under the equipment or infrastructure grant program if such sale, trade, destruction, or abandonment occurs within the relevant recovery period for standard farming assets as depicted in IRS Publication 225 (Farmer’s Tax Guide), Table 7-1, Farm Property Recovery Periods.
6. If the equipment or infrastructure is sold, traded, abandoned, or destroyed within the relevant recovery period noted in Section 9.5, DACF may seek reimbursement from the grantee for the remaining value of the equipment or infrastructure as calculated using generally accepted accounting principles. In deciding whether to seek reimbursement, DACF will consider whether the events leading to the sale, trade, abandonment, or destruction were within the grantee’s control and will not penalize grantees for forces beyond their control. Failure to provide reimbursement, if demanded, will render the grant recipient ineligible for future assistance from DACF.
7. The State may inspect any equipment, facilities or infrastructure funded through an equipment or infrastructure grant at any time within the relevant recovery period noted in Section 9.5.
8. All grantees will purchase and maintain insurance to cover the value of the equipment or infrastructure from loss during the relevant recovery period noted in Section 9.5.

§ 10. RIGHT TO APPEAL

1. If an application is denied in whole or in part, DACF must send the applicant a written notice of its decision. Such notice must include an explanation of why the application was denied. 
2. An aggrieved person may appeal a grant award decision by requesting an appeal hearing according to the procedures defined in 01-001 C.M.R. Chapter 8, §§ 4-6, Rules for Departmental Grant Awards and Appeals.

§ 11. WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the PFAS Fund may, for good cause, request waiver of any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 7, Chapter 10-D. The Commissioner of DACF may grant the waiver in extenuating circumstances.

STATUTORY AUTHORITY: 7 MRS Ch. 10-D §320-K - §320-L and PL 2021, ch. 635, sec. XX-3

EFFECTIVE DATE:

March 17, 2024 – filing 2024-055

APAO ACCESSIBILITY CHECK:

January 21, 2026 (no issues detected)

AMENDED:

January 25, 2026 – filing 2026-020