SB-0538, As Passed Senate, June 15, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 538

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 14501 and 14513 (MCL 324.14501 and 324.14513),

section 14501 as amended by 2004 PA 333 and section 14513 as

amended by 2004 PA 334.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 14501. As used in this part:

     (a) "Agricultural biomass" means residue and waste generated

on a farm or by farm co-operative members from the production and

processing of agricultural products, animal wastes, food processing

wastes, or other materials as approved by the director.

(b)  (a) "Department" means the department of environmental

quality.

(c)  (b) "Director" means the director of the department of

environmental quality.

     (d) "Eligible farmer or agricultural processor" means a person

who processes agricultural products or a person who is engaged as

an owner-operator of a farm in the production of agricultural goods

as defined by section 35(1)(h) of the single business tax act, 1975

PA 228, MCL 208.35.

(e)  (c) "Environmental wastes" means all environmental

pollutants, wastes, discharges, and emissions, regardless of how

they are regulated and regardless of whether they are released to

the general environment or the workplace environment.

(f)  (d) "Pollution prevention" means all of the following:

     (i) "Source reduction" as defined in  the pollution prevention

act of 1990, subtitle G of title VI of the omnibus budget

reconciliation act of 1990, Public Law 101-508, 42 U.S.C. 13101 to

13109  42 USC 13102.

     (ii) "Pollution prevention" as described in the United States

environmental protection agency's pollution prevention statement

dated June 15, 1993.

     (iii) Environmentally sound on-site or off-site reuse or

recycling including, but not limited to, the use of agricultural

biomass by qualified agricultural energy production systems.

     (g) "Qualified agricultural energy production system" means

the structures, equipment, and apparatus to be used to produce a

gaseous fuel from the noncombustive decomposition of agricultural

biomass and the apparatus and equipment used to generate

electricity or heat from the gaseous fuel or store the gaseous fuel

for future generation of electricity or heat. Qualified

agricultural energy production system may include, but is not

limited to, a methane digester, biomass gasification technology, or

thermal depolymerization technology.

(h)  (e) "RETAP" means the retired engineers technical

assistance program created in section 14511.

(i)  (f) "Retap fund" means the retired engineers technical

assistance program fund created in section 14512.

(j)  (g) "Small business" means a business that is not

dominant in its field as  defined  described in 13  C.F.R.  CFR

part 121  ,  and meets both of the following requirements:

     (i) Is independently owned or operated, by a person that

employs 500 or fewer individuals.

     (ii) Is a small business concern as defined in  the small

business act, Public Law 85-536, 72 Stat. 384  15 USC 632.

     Sec. 14513. (1) The small business pollution prevention

assistance revolving loan fund is created within the state

treasury.

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

any source for deposit into the fund. The state treasurer shall

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

to the fund interest and earnings from fund investments.

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

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

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

Senate Bill No. 538 as amended June 15, 2006

appropriation, to provide loans to small businesses to implement

pollution prevention projects. For each loan issued under this

section, the money shall be disbursed by the department to a

lending institution that has entered into a loan participation

agreement with the department.

     (5) To be eligible for a loan from the fund for a qualified

agricultural energy production system, an applicant shall meet all

of the following requirements:

     (a) The applicant shall be an eligible farmer or agricultural

processor, or a for-profit farmer cooperative corporation organized

under and operated in accordance with sections 98 to 109 of 1931 PA

327, MCL 450.98 to 450.109.

     (b) The applicant shall be verified under the appropriate

system of the Michigan agriculture environmental assurance program

administered by the department of agriculture.

     (c) Within a 3-year period immediately preceding the date the

application was submitted, the applicant shall not have been found

guilty of a criminal violation under this act.

     <<(d) Within a 1-year period immediately preceding the date the application was submitted, the applicant shall not have been found responsible for a civil violation under this act that resulted in a civil fine of $10,000.00 or more.>>

(6)  (5) The  maximum  amount of a loan from the fund shall

be $150,000.00, and a  not exceed $200,000.00. A small business

shall not receive more than 1 loan in any 3-year period. Interest

rates paid by the small business shall be set by the director, but

shall not exceed 5%.

(7)  (6) As used in this section, "fund" means the small

business pollution prevention assistance revolving loan fund

created in subsection (1).