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HB-4572, As Passed Senate, November 10, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4572

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

(MCL 324.101 to 324.90106) by adding section 5204a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 5204a. (1) The authority in conjunction with the

department shall establish a strategic water quality initiatives

grant program that provides grants totaling not more than

$40,000,000.00 to eligible municipalities. The grant program shall

provide assistance to municipalities to complete the loan

application requirements of section 5308.

(2) The grant program is subject to all of the following:

(a) The grant program shall provide grants to cover not more

than 90% of the costs incurred by a municipality to complete an

application for loan assistance from the state water pollution

control revolving fund or the fund.

(b) The 10% local match is not eligible for loan assistance

from the state water pollution control revolving fund or the fund.

administrative activities or activities performed by municipal

employees.

(d) A municipality shall not receive more than $1,000,000.00

in total grant assistance under this section.

(e) Grants under this section shall be available for projects

seeking or intending to seek loan assistance after September 30,

2006.

(f) The department shall cease accepting grant applications

under this section 2 years after the date the first grant agreement

is entered into under subsection (3).

(3) Within 6 months after the effective date of the amendatory

act that added this section, the department shall establish an

application and review process for considering grant applications

under this section. The application shall contain the information

required by the department and the authority. Within 30 days after

receipt of an application, the department shall publish notice of

the application on the department's calendar. Within 60 days after

receipt of an administratively complete grant application, the

department shall, in writing, notify the applicant whether the

application is approved or rejected. If the department approves a

grant under this section, the department and the authority shall

enter into a grant agreement with the recipient prior to

transferring funds. The grant agreement shall contain terms

established by the department and the authority and a requirement

that the grant recipient repay the grant, within 90 days of being

informed to do so, with interest at a rate not to exceed 8% per

year, to the authority for deposit into the fund if any of the

following occur:

(a) The applicant fails to submit an administratively complete

loan application for assistance from the state water pollution

control revolving fund or the fund for the project within 3 years

of the grant award.

(b) The project has been identified as being in the fundable

range and the applicant declines loan assistance from the state

water pollution control revolving fund or the fund in that fiscal

year.

with constructing the project or opts to finance construction by

means other than a grant from the state water pollution control

revolving fund or the fund.

(4) For each year in which the department receives grant

applications under this section, the department shall report by

July 1 of each year to the standing committees of the senate and

the house of representatives with primary jurisdiction over issues

pertaining to natural resources and the environment and to the

senate and house of representatives appropriations committees on

the utilization of funds under this part that were received from

the Great Lakes water quality bond fund created in section 19706.

The report shall include, at a minimum, all of the following:

(a) The number of grant applications received under this

House Bill No. 4572 (S-5) as amended November 9, 2005

section.

(b) The name of each municipality applying for a grant.

awarded, including an identification of whether each award was for

the purpose of applying for assistance from the state water

pollution control revolving fund or the fund.

(d) A summary of loan assistance, by year, tendered from the

state water pollution control revolving fund and the fund.

(5) The senate and house appropriations committees shall

annually review whether there is sufficient money in the fund to

implement this section and section 5202.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) House Bill No. 4573.

(b) Senate Bill No. 789.

(d) Senate Bill No. 799.

(e) [House Bill No. 5297].