SB-0252, As Passed Senate, June 18, 2003                                    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           SENATE BILL NO. 252                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 451, entitled                                             

                                                                                

    "Natural resources and environmental protection act,"                       

                                                                                

    by amending sections 3111 and 3113 (MCL 324.3111 and 324.3113)              

                                                                                

    and by adding sections 3120 and 3121.                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3111.  (1) A person doing business within this state                   

                                                                                

2   who discharges to the waters of the state or to any sewer system            

                                                                                

3   wastewater that contains wastes  in addition to  other than                 

                                                                                

4   sanitary sewage shall file an annual report on a form provided by           

                                                                                

5   the department.  The report described in this section shall set             

                                                                                

6   forth the nature of the enterprise, indicating the quantities of            

                                                                                

7   materials used in and incidental to its manufacturing processes             

                                                                                

8   and including by-products and waste products that appear on a               

                                                                                

9   register of critical materials compiled by the department and the           

                                                                                

10  estimated annual total number of gallons of wastewater,                     

                                                                                


    Senate Bill No. 252 as amended June 18, 2003                                

1   including, but not limited to, process and cooling water to be              

                                                                                

2   discharged to the waters of the state or to any sewer system.               

                                                                                

3       (2) The information collected under subsection (1) shall be                 

                                                                                

4   used by the department only for purposes of water pollution                 

                                                                                

5   control<< and to supplement the department's data for purposes of water quality monitoring>>.  The department shall provide proper and adequate                 

6   facilities and procedures to safeguard the confidentiality of               

                                                                                

7   manufacturing proprietary processes, except that confidentiality            

                                                                                

8   shall not extend to waste products discharged to the waters of              

                                                                                

9   the state.                                                                  

                                                                                

10      (3) Beginning 2 years after the effective date of the                       

                                                                                

11  amendatory act that added this subsection, the department shall             

                                                                                

12  compile the information collected under subsection (1) and shall            

                                                                                

13  make that compilation available on the department's website.                

                                                                                

14      (4) Operations of a business or industry that violate this                  

                                                                                

15  section may be enjoined by an action commenced by the attorney              

                                                                                

16  general in a court of competent jurisdiction.                               

                                                                                

17      (5) The department shall promulgate rules as it considers                   

                                                                                

18  necessary to  effectuate the administration of   implement this             

                                                                                

19  section, including,  where  if necessary to meet special                    

                                                                                

20  circumstances, reporting more frequently than annually.                     

                                                                                

21      Sec. 3113.  (1) A person who seeks a new or increased use of                

                                                                                

22  the waters of the state for sewage or other waste disposal                  

                                                                                

23  purposes shall file with the department an application setting              

                                                                                

24  forth the information required by the department, including the             

                                                                                

25  nature of the enterprise or development contemplated, the amount            

                                                                                

26  of water required to be used, its source, the proposed point of             

                                                                                

27  discharge of the wastes into the waters of the state, pollution             


    Senate Bill No. 252 as amended June 18, 2003                                

1   prevention efforts evaluated and undertaken, the estimated amount           

                                                                                

2   to be discharged, and a statement setting forth the expected                

                                                                                

3   bacterial, physical, chemical, and other known characteristics of           

4   the wastes.                                                                 

          <<(2) Until October 1, 2007, an application for a permit under this part authorizing a discharge into surface water, other than a stormwater discharge, shall be accompanied by an application fee as follows:

     (a) For an EPA major facility permit, $1,000.00.

     (b) For an EPA minor facility individual permit, $500.00.

     (c) For an EPA minor facility general permit, $100.00.

    (d) For a major modification of an existing permit, $500.00.>>              

5       <<(3)(2)>> Within 180 days after receipt of a complete application,         

                                                                                

6   the department shall either grant or deny a permit, unless the              

                                                                                

7   applicant and the department agree to extend this time period.  A           

                                                                                

8   permit shall be reissued by September 30 of the year following              

                                                                                

9   submittal of an administratively complete application.                      

                                                                                

10      <<(4)>> If a permit is granted, the department shall condition              

                                                                                

11  the permit upon such restrictions that the department considers             

                                                                                

12  necessary to adequately guard against unlawful uses of the waters           

                                                                                

13  of the state as are set forth in section 3109.                              

                                                                                

14      <<(5)>>  (3)  If the permit or denial of a new or increased use             

                                                                                

15  is not acceptable to the permittee, the applicant, or any other             

                                                                                

16  person, the permittee, the applicant, or other person may file a            

                                                                                

17  sworn petition with the department setting forth the grounds and            

                                                                                

18  reasons for the complaint and asking for a contested case hearing           

                                                                                

19  on the matter pursuant to the administrative procedures act of              

                                                                                

20  1969,  Act No. 306 of the Public Acts of 1969, being sections               

                                                                                

21  24.201 to 24.328 of the Michigan Compiled Laws  1969 PA 306, MCL            

                                                                                

22  24.201 to 24.328.  A petition filed more than 60 days after                 

                                                                                

23  action on the permit application may be rejected by the                     

                                                                                

24  commission as being untimely.                                               

                                                                                

25      <<(6)>> As used in this section, "EPA minor facility" and "EPA              

                                                                                

26  major facility" mean those terms as they are defined in section             

                                                                                

27  3120.                                                                       


    Senate Bill No. 252 as amended June 18, 2003                                

1       Sec. 3120.  (1) Until October 1, 2007, a person who receives                

                                                                                

2   a permit under this part authorizing a discharge into surface               

                                                                                

3   water, other than a stormwater discharge, is subject to an annual           

                                                                                

4   permit fee as follows:                                                      

                                                                                

5       (a) For an EPA major facility, <<$9,822.00>>.                               

                                                                                

6       (b) For an EPA minor facility, the following amounts:                       

                                                                                

7                                                                                (i) For a general permit for a low-flow facility, <<$559.00>>.                      

                                                                                

8       (ii) For a general permit for a high-flow facility, <<$838.00>>.             

                                                                                

9       (iii) For an individual permit for a low-flow facility,                      

                                                                                

10  <<$2,101.00>>.                                                              

                                                                                

11      (iv) For an individual permit for a high-flow facility,                      

                                                                                

12  <<$4,380.00>>.                                                              

                                                                                

13      (c) For a municipal facility that is an EPA major facility,                 

                                                                                

14  the following amounts:                                                      

                                                                                

15                                                                               (i) For an individual permit for a facility discharging 500                         

                                                                                

16  MGD or more, <<$66,918.00>>.                                                

                                                                                

17      (ii) For an individual permit for a facility discharging 50                  

                                                                                

18  MGD or more but less than 500 MGD, <<$20,596.00>>.                          

                                                                                

19      (iii) For an individual permit for a facility discharging 10                 

                                                                                

20  MGD or more but less than 50 MGD, <<$13,044.00>>.                           

                                                                                

21      (iv) For an individual permit for a facility discharging less                

                                                                                

22  than 10 MGD, <<$5,608.00>>.                                                 

                                                                                

23      (d) For a municipal facility that is an EPA minor facility,                 

                                                                                

24  the following amounts:                                                      

                                                                                

25                                                                               (i) For an individual permit for a facility discharging 10                          

                                                                                

26  MGD or more, $3,775.00.                                                     

                                                                                

27      (ii) For an individual permit for a facility discharging 1                   


    Senate Bill No. 252 as amended June 18, 2003                                

1   MGD or more but less than 10 MGD, <<$3,114.00>>.                            

                                                                                

2       (iii) For an individual permit for a facility discharging                    

                                                                                

3   less than 1 MGD, <<$1,970.00>>.                                             

                                                                                

4       (iv) For a general permit for a high-flow facility, <<$716.00>>.             

                                                                                

5       (v) For a general permit for a low-flow facility, <<$476.00>>.              

                                                                                

6       (e) For a municipal facility that is a CSO facility,                        

                                                                                

7   <<$6,504.00>>.                                                              

                                                                                

8       (f) For an individual permit for a wastewater stabilization                 

                                                                                

9   lagoon, <<$1,583.00>>.                                                      

                                                                                

10      (g) For a facility that holds a permit issued under this part               

                                                                                

11  but has no discharge or discharges only to a municipal wastewater           

                                                                                

12  treatment system, an annual permit maintenance fee of $100.00.              

                                                                                

13      (2) If the person required to pay the annual permit fee under               

                                                                                

14  subsection (1) is a municipality, the municipality may pass on              

                                                                                

15  the annual permit fee to each user of the municipal facility.               

                                                                                

16      (3) The department shall send invoices for annual permit fees               

                                                                                

17  under subsection (1) to all permit holders by December 1 of each            

                                                                                

18  year.  A person subject to an annual permit fee shall pay the fee           

                                                                                

19  not later than January 15 of each year.  The department shall               

                                                                                

20  forward annual permit fees received under this section to the               

                                                                                

21  state treasurer for deposit into the national pollutant discharge           

                                                                                

22  elimination system fund created in section 3121.                            

                                                                                

23      (4) The department shall assess a penalty on all annual                     

                                                                                

24  permit fee payments submitted under this section after the due              

                                                                                

25  date.  The penalty shall be an amount equal to 0.75% of the                 

                                                                                

26  payment due for each month or portion of a month the payment                

                                                                                

27  remains past due.                                                           


                                                                                

1       (5) Following payment of an annual permit fee, if a permittee               

                                                                                

2   wishes to challenge its annual permit fee under this section, the           

                                                                                

3   owner or operator shall submit the challenge in writing to the              

                                                                                

4   department.  The department shall not process the challenge                 

                                                                                

5   unless it is received by the department by March 1 of the year              

                                                                                

6   the payment is due.  A challenge shall identify the facility and            

                                                                                

7   state the grounds upon which the challenge is based.  Within 30             

                                                                                

8   calendar days after receipt of the challenge, the department                

                                                                                

9   shall determine the validity of the challenge and provide the               

                                                                                

10  permittee with notification of a revised annual permit fee and a            

                                                                                

11  refund, if appropriate, or a statement setting forth the reason             

                                                                                

12  or reasons why the annual permit fee was not revised.  If the               

                                                                                

13  owner or operator of a facility desires to further challenge its            

                                                                                

14  annual permit fee, the owner or operator of the facility has an             

                                                                                

15  opportunity for a contested case hearing as provided for under              

                                                                                

16  the administrative procedures act of 1969, 1969 PA 306, MCL                 

                                                                                

17  24.201 to 24.328.                                                           

                                                                                

18      (6) The attorney general may bring an action for the                        

                                                                                

19  collection of the annual permit fee imposed under this section.             

                                                                                

20      (7) As used in this section:                                                

                                                                                

21      (a) "Combined sewer overflow" means a discharge from a                      

                                                                                

22  combined sewer system that occurs when the flow capacity of the             

                                                                                

23  combined sewer system is exceeded at a point prior to the                   

                                                                                

24  headworks of a publicly owned treatment works during wet weather            

                                                                                

25  conditions.                                                                 

                                                                                

26      (b) "Combined sewer system" means a sewer designed and used                 

                                                                                

27  to convey both storm water runoff and sanitary sewage, and which            


                                                                                

1   contains lawfully installed regulators and control devices that             

                                                                                

2   allow for delivery of sanitary flow to treatment during dry                 

                                                                                

3   weather periods and divert storm water and sanitary sewage to               

                                                                                

4   surface waters during storm flow periods.                                   

                                                                                

5       (c) "CSO facility" means a facility whose discharge is solely               

                                                                                

6   a combined sewer overflow.                                                  

                                                                                

7       (d) "EPA major facility" means a facility that is designated                

                                                                                

8   by the United States environmental protection agency as being a             

                                                                                

9   major facility under 40 C.F.R. 122.2.                                       

                                                                                

10      (e) "EPA minor facility" means a facility that is not an EPA                

                                                                                

11  major facility.                                                             

                                                                                

12      (f) "General permit" means a permit suitable for use at                     

                                                                                

13  facilities meeting eligibility criteria as specified in the                 

                                                                                

14  permit.  With a general permit, the discharge from a specific               

                                                                                

15  facility is acknowledged through a certificate of coverage issued           

                                                                                

16  to the facility.                                                            

                                                                                

17      (g) "High-flow facility" means a facility that discharges 1                 

                                                                                

18  MGD or more.                                                                

                                                                                

19      (h) "Individual permit" means a permit developed for a                      

                                                                                

20  particular facility, taking into account that facility's specific           

                                                                                

21  characteristics.                                                            

                                                                                

22      (i) "Low-flow facility" means a facility that discharges less               

                                                                                

23  than 1 MGD.                                                                 

                                                                                

24      (j) "MGD" means 1,000,000 gallons per day.                                  

                                                                                

25      (k) "Municipal facility" means a facility owned or operated                 

                                                                                

26  by a local unit, authority, or other public body, including an              

                                                                                

27  intermunicipal agency of 2 or more municipalities, authorized or            


                                                                                

1   created under state law.                                                    

                                                                                

2                                                                                (l) "Wastewater stabilization lagoon" means a type of                               

                                                                                

3   treatment system constructed of ponds or basins designed to                 

                                                                                

4   receive, hold, and treat sanitary wastewater for a predetermined            

                                                                                

5   amount of time.  Wastewater is treated through a combination of             

                                                                                

6   physical, biological, and chemical processes.                               

                                                                                

7       Sec. 3121.  (1) The national pollutant discharge elimination                

                                                                                

8   system fund is created within the state treasury.                           

                                                                                

9       (2) The state treasurer may receive money or other assets                   

                                                                                

10  from any source for deposit into the fund.  The state treasurer             

                                                                                

11  shall direct the investment of the fund.  The state treasurer               

                                                                                

12  shall credit to the fund interest and earnings from fund                    

                                                                                

13  investments.                                                                

                                                                                

14      (3) Money in the fund at the close of the fiscal year shall                 

                                                                                

15  remain in the fund and shall not lapse to the general fund.                 

                                                                                

16      (4) The department shall expend money from the fund, upon                   

                                                                                

17  appropriation, only to administer the national pollutant                    

                                                                                

18  discharge elimination system program under this part including,             

                                                                                

19  but not limited to, all of the following:                                   

                                                                                

20      (a) Water quality standards development and maintenance.                    

                                                                                

21      (b) Permit development and issuance.                                        

                                                                                

22      (c) Maintenance of program data.                                            

                                                                                

23      (d) Ambient water quality monitoring conducted to determine                 

                                                                                

24  permit conditions and evaluate the effectiveness of permit                  

                                                                                

25  requirements.                                                               

                                                                                

26      (e) Activities conducted to determine a discharger's permit                 

                                                                                

27  compliance status, including, but not limited to, inspections,              


                                                                                

1   discharge monitoring, and review of submittals.                             

                                                                                

2       (f) Laboratory services.                                                    

                                                                                

3       (g) Enforcement.                                                            

                                                                                

4       (h) Program administration activities.                                      

                                                                                

5       (5) By January 1, 2006 and by January 1 of each year                        

                                                                                

6   thereafter, the department shall prepare and submit to the                  

                                                                                

7   governor, the legislature, the chairs of the standing committees            

                                                                                

8   of the senate and house of representatives with primary                     

                                                                                

9   responsibility for issues related to natural resources and the              

                                                                                

10  environment, and the chairs of the subcommittees of the senate              

                                                                                

11  and house appropriations committees with primary responsibility             

                                                                                

12  for appropriations to the department a report that details the              

                                                                                

13  departmental activities of the previous fiscal year in                      

                                                                                

14  administering the department's national pollutant discharge                 

                                                                                

15  elimination system program that were funded by the fund.  This              

                                                                                

16  report shall include, at a minimum, all of the following as it              

                                                                                

17  relates to the department:                                                  

                                                                                

18      (a) The number of full-time equated positions performing each               

                                                                                

19  of the following functions:                                                 

                                                                                

20                                                                               (i) Permit issuance and development.                                                

                                                                                

21      (ii) Compliance.                                                             

                                                                                

22      (iii) Enforcement.                                                           

                                                                                

23      (b) The number of new permit applications received by the                   

                                                                                

24  department in the preceding year.                                           

                                                                                

25      (c) The number of renewal permits in the preceding year.                    

                                                                                

26      (d) The number of permit modifications requested in the                     

                                                                                

27  preceding year.                                                             


                                                                                

1       (e) The number of staff hours dedicated to each of the fee                  

                                                                                

2   categories listed in section 3120.                                          

                                                                                

3       (f) The number of permits issued for fee categories listed in               

                                                                                

4   section 3120.                                                               

                                                                                

5       (g) The average number of days for review of a permit from                  

                                                                                

6   the date the permit was determined to be administratively                   

                                                                                

7   complete.                                                                   

                                                                                

8       (h) The number of permit applications denied.                               

                                                                                

9       (i) The number of permit applications withdrawn by the                      

                                                                                

10  applicant.                                                                  

                                                                                

11      (j) The percentage and number of permit applications that                   

                                                                                

12  were reviewed for administrative completeness within 10 days of             

                                                                                

13  receipt by the department.                                                  

                                                                                

14      (k) The percentage and number of permit applications                        

                                                                                

15  submitted to the department that were administratively complete             

                                                                                

16  as received.                                                                

                                                                                

17                                                                               (l) The percentage and number of new permit applications for                        

                                                                                

18  which a final action was taken by the department within 180                 

                                                                                

19  days.                                                                       

                                                                                

20      (m) The percentage and number of permit renewals and                        

                                                                                

21  modifications processed within the time required under this                 

                                                                                

22  part.                                                                       

                                                                                

23      (n) The number of permits reopened by the department.                       

                                                                                

24      (o) The number of unfilled positions dedicated to the                       

                                                                                

25  national pollutant discharge elimination system program.                    

                                                                                

26      (p) The amount of revenue in the fund at the end of the                     

                                                                                

27  fiscal year.                                                                


    Senate Bill No. 252 as amended June 18, 2003                                

1       (6) As used in this section:                                                

                                                                                

2       (a) "Fund" means the national pollutant discharge elimination               

                                                                                

3   system fund created in subsection (1).                                      

                                                                                

4       (b) "National pollutant discharge elimination system program"               

                                                                                

5   means the national pollutant discharge elimination system program           

                                                                                

6   delegated to the department under section 402 of title IV of the            

                                                                                

7   federal water pollution control act, chapter 758, 86 Stat. 880,             

                                                                                

8    33 U.S.C. 1342, and implemented under this part. 

    <<Enacting section 1.  This amendatory act takes effect October 1, 2003.>>