December 13, 2005, Introduced by Reps. Pavlov, Kahn, LaJoy, Nitz, Huizenga, Gaffney, Kathleen Law, Espinoza and Miller and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.
A bill to amend 1984 PA 44, entitled
"Motor fuels quality act,"
by amending the title and sections 2, 3, 5, 9b, 9d, 9g, 9h, 9i, 9j,
10b, 10c, and 10d (MCL 290.642, 290.643, 290.645, 290.649b,
290.649d, 290.649g, 290.649h, 290.649i, 290.649j, 290.650b,
290.650c, and 290.650d), the title and section 2 as amended and
sections 9b, 9d, 9g, 9h, 9j, and 10c as added by 1993 PA 236,
sections 3, 5, and 10b as amended by 2002 PA 13, section 9i as
amended by 2004 PA 278, and section 10d as added by 1993 PA 231,
and by adding sections 9k and 9l; and to repeal acts and parts of
acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to provide purity and quality standards for motor
fuels; to regulate the transfer, sale, dispensing, or offering
motor fuels for sale; to provide for an inspection and testing
program; to provide for the powers and duties of certain state
agencies; to prescribe certain powers of the governor; to provide
for the licensing of certain persons engaged in the transfer, sale,
dispensing, or offering of motor fuels for sale; to regulate stage
I
and stage II vapor-recovery systems at certain facilities; to
provide for fees; to make appropriations; and to provide remedies
and prescribe fines and penalties.
Sec. 2. As used in this act:
(a) "Additive" means any substance in gasoline other than
gasoline but does not include approved blending components, other
than lead, sodium, and phosphate components, introduced at
refineries or terminals as octane or product quality enhancers in
quantities of less than 1% of volume.
(b) "American society for testing and materials" means an
international nonprofit scientific and educational society devoted
to the promotion of knowledge of the materials of engineering and
the standardization of specification and methods of testing.
(c) "Antiknock index" or "AKI" means an index number arrived
at by adding the motor octane number and the research octane
number, then dividing by 2.
(d) "Blender" means a person who as an individual or through
his or her agent adds an oxygenate to a gasoline.
(e) "Bulk purchaser-end user" means a person who is an
ultimate consumer of gasoline and receives delivery of gasoline
into a storage tank of at least 550-gallon capacity substantially
under his or her control.
(f) "CARB" means the California air resources board.
(g) "Delivery vessel" means a tank truck, tank equipped
trailer, or a similar vessel used for the delivery of gasoline to a
dispensing facility.
(h) "Department" means the department of agriculture.
(i) "Director" means the director of the department of
agriculture or his or her authorized representative.
(j)
"Dispensing facility" means a site used for vehicle
gasoline
refueling. that is located in an area of this state that
has
been designated as ozone nonattainment and classified as
moderate,
serious, severe, or extreme by the E.P.A. pursuant to 40
C.F.R.
section 81.323, November 6, 1991. Dispensing facility does
not
include a facility used exclusively for the refueling of
aircraft,
watercraft, or vehicles that are designed for
agricultural
purposes and used exclusively in agricultural
operations.
(k) "Dispensing unit" means a device designed for the delivery
of gasoline in which 1 nozzle equates to 1 dispensing unit.
(l) "Distributor" means a person who purchases, transports, or
stores or causes the transportation or storage of gasoline at any
point between a gasoline refinery and a retail outlet or bulk
purchaser-end user facility.
(m) "E.P.A." means the United States environmental protection
agency.
(n) "Gasoline" means any fuel sold in this state that is
suitable for use in spark-ignition internal combustion engines, and
commonly or commercially known or sold as gasoline.
(o) "Leak" means liquid or vapor loss from the gasoline
dispensing
system or stage I or stage II vapor-recovery system as
determined by visual inspection or functional testing.
(p) "Modification" means any change, removal, or addition,
other than an identical replacement, of any component contained
within
a stage I or stage II vapor-recovery system. The resultant
modification must constitute an approved vapor-recovery system.
(q) "Motor octane number" or "MON" means a knock
characteristic of gasoline determined by use of standard procedures
on a motor engine.
(r) "Operator" means a person who owns, leases, operates,
manages, supervises, or controls, directly or indirectly, a
gasoline-dispensing facility.
(s) "Oxygenate" means an oxygen-containing, ashless, organic
compound, such as alcohol or ether, that may be used as fuel or
fuel supplement.
(t) "Person" means an individual, sole proprietorship,
partnership, corporation, association, or other legal entity.
(u) "Refiner" means a person who owns, leases, operates,
controls, or supervises a refinery.
(v) "Refinery" means a plant at which gasoline is produced.
(w) "Research octane number" or "RON" means a knock
characteristic of gasoline determined by use of standard procedures
on a research engine.
(x) "Retail dealer" means a person who owns, leases, operates,
controls, or supervises a retail outlet.
(y) "Retail outlet" means an establishment at which gasoline
is sold or offered for sale to the public.
(z) "Rule" means a rule promulgated pursuant to the
administrative
procedures act of 1969, Act No. 306 of the Public
Acts
of 1969, being sections 24.201 to 24.328 of the Michigan
Compiled
Laws 1969 PA 306, MCL 24.201
to 24.328.
(aa) "Stage I vapor-recovery system" means a vapor tight
collection system that is approved by the department and is
designed to capture the gasoline vapors displaced during delivery
into a stationary storage tank and to return not less than 90% of
the displaced vapors to the delivery vessel.
(bb)
"Stage II vapor-recovery system" means a gasoline-
dispensing
system approved by the department that prevents 95% or
more
of the volatile organic compounds from being emitted during
gasoline
refueling.
Sec. 3. (1) The director shall establish standards pursuant to
this act to ensure the purity and quality of gasoline sold or
offered for sale in this state.
(2) The director shall establish standards for the amount and
type of additives allowed to be included in gasoline.
(3) The director shall establish standards for the grading of
gasoline, including, but not limited to, subregular with a minimum
85 AKI, regular with a minimum 87 AKI and a minimum 82 MON,
midgrade 88 with a minimum 88 AKI and a minimum 82 MON, midgrade 89
with a minimum 89 AKI and a minimum 83 MON, premium with a minimum
90 AKI, premium 91 with a minimum 91 AKI, premium 92 with a minimum
92 AKI, premium 93 with a minimum 93 AKI, and premium 94 with a
minimum 94 AKI.
(4) The director shall establish standards for Reid vapor
pressure as specified by the American society for testing and
materials, except as otherwise required to conform to federal or
state
law. The Notwithstanding
anything to the contrary in
section 10d, the director shall establish the Reid vapor pressure
as 9.0 pounds per square inch (psi) for retail outlets during the
period beginning June 1 through September 15 of each year, except
for
dispensing facilities in counties
where the director shall
establish
establishes the Reid vapor pressure as 7.0 psi or 7.8
psi
in the year 1996 2006 and thereafter. As used in this
subsection and section 10d, "Reid vapor pressure" means the vapor
pressure of gasoline or gasoline oxygenate blend as determined by
ASTM test method D323, standard test method for vapor pressure of
petroleum products (Reid method) or test method D4953, standard
test method for vapor pressure of gasoline and gasoline oxygenate
blends (dry method).
(5) In establishing additive and grading standards the
director shall adopt the latest standards for gasoline established
by the American society for testing and materials and shall adopt
the latest standards for gasoline established by federal law or
regulation. The standards established by the director shall not
prohibit a gasoline blend that is permitted by a valid waiver
granted by the United States environmental protection agency
pursuant to the fuel or fuel additive waiver in section 211(f)(4)
of part A of title II of the clean air act, chapter 360, 81 Stat.
502,
42 U.S.C. USC 7545, and the ethanol waiver of 1.0 psi in
section 211(h)(4) of part A of title II of the clean air act,
chapter
360, 81 Stat. 502, 42 U.S.C. USC 7545, if the gasoline
blend meets all of the conditions set forth in the waiver.
Beginning June 1, 2003, the director shall not permit the use of
the
additive methyl tertiary butyl ether (MTBE) in this state. The
director,
in consultation with the department of environmental
quality,
shall determine if the additive is likely to cause harmful
effects
on the environment or public health within the state. By
June
1, 2002, the director, in consultation with the director of
the
department of environmental quality, shall review the status of
the
use of MTBE in this state. The review shall include the
following:
(a)
The amount of the additive methyl tertiary butyl ether
(MTBE)
currently in use in gasoline in this state.
(b)
An estimate of the amount of MTBE that is imported in
gasoline
transported into this state from other states or
countries.
(c)
Recommendations as to whether the June 1, 2003 prohibition
can
be achieved and, if not, determine a more feasible date.
(d)
Any other information considered appropriate.
(6) Standards established pursuant to this section shall be by
rules promulgated pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 5. (1) Except as provided by federal law or regulation,
in the manufacture of gasoline at any refinery in this state, a
refiner shall not manufacture gasoline at a refinery in this state
unless
the gasoline meets the requirements in section sections 3
and 10d. Except as provided by federal law or regulation, a blender
shall not blend gasoline unless the finished blend meets the
requirements
in section sections 3 and
10d.
(2) Except as provided by federal law or regulation, a
distributor shall not sell or transfer to any distributor, retail
dealer, or bulk purchaser-end user any gasoline unless that
gasoline
meets the requirements in section sections 3 and 10d.
(3) A carrier or an employee or agent of a carrier, whether
operating under contract or tariff, shall not cause gasoline
tendered to the carrier for shipment or transfer to another
carrier, distributor, or retail dealer to fail to comply, at the
time
of delivery, with the requirements in section sections 3 and
10d.
(4) A person shall not knowingly sell, dispense, or offer for
sale gasoline unless that gasoline meets the requirements in
section
sections 3 and
10d.
(5) A refiner or distributor shall not transfer, sell,
dispense, or offer gasoline for sale in this state to a distributor
unless the refiner or distributor indicates on each bill, invoice,
or other instrument evidencing a delivery of gasoline, the name of
the wholesale distributor who received delivery of the gasoline.
(6) A distributor or refiner shall not transfer, sell,
dispense, or offer gasoline for sale in this state to a retail
dealer unless the distributor indicates on each bill, invoice, or
other instrument evidencing a delivery of gasoline, the name and
license number issued pursuant to this act, of the retail dealer
who received delivery of the gasoline.
(7) A bill, invoice, or other instrument evidencing a delivery
of gasoline issued by a refiner or distributor for deliveries of
gasoline to purchasers who are not required to hold a license
issued pursuant to the motor fuel tax act, 2000 PA 403, MCL
207.1001 to 207.1170, or this act shall clearly indicate the name
and address and other information necessary to identify the
purchaser of the gasoline.
(8) A bill, invoice, or other instrument evidencing a delivery
of gasoline required by subsection (5), (6), or (7) shall include a
guarantee that the gasoline delivered meets the requirements in
section
sections 3 and
10d and shall indicate the
concentration
range of alcohol in the gasoline, except for alcohols or ethers
that have a molecular weight greater than ethanol and are not mixed
with methanol or ethanol, or both, and shall indicate the possible
presence, without regard to concentration range, of any alcohols or
ethers that have a molecular weight greater than ethanol and are
not mixed with methanol or ethanol, or both.
(9) A refiner, distributor, bulk purchaser-end user, or retail
dealer shall not transfer, sell, dispense, or offer gasoline for
sale unless that gasoline is visibly free of undissolved water,
sediments, and other suspended matter and is clear and bright at an
ambient temperature or 70 degrees Fahrenheit, whichever is greater.
(10) A person who violates this section or rules promulgated
under this section is liable for a civil fine not to exceed
$10,000.00 for each day of the continuance of the violation. A
civil fine ordered pursuant to this section shall be submitted to
the state treasurer for deposit in the gasoline inspection and
testing fund created by section 8.
Sec. 9b. (1) Except as otherwise provided for in this section,
the
following dispensing facilities are exempt from the
requirements
of sections 9a to 9f, 9i, and 9j:
(a)
A a dispensing facility that never dispenses 10,000
gallons (37,850 liters) or more of gasoline per month on average in
any 12-month period, beginning with the 12 months preceding the
effective
date of this section or the period from November 15,
1990
to November 15, 1992 is
exempt from the requirements of
sections 9a to 9d, 9i, and 9j. If the dispensing facility is
inactive for any period during the 12-month averaging period, the
average shall be calculated based upon the months of actual
operation.
The exemption described in this subdivision subsection
does not apply to a dispensing facility that dispenses 10,000 or
more gallons of gasoline per month on average in any 12-month
period and such a facility is subject to sections 9a to 9f, 9i, and
9j and continues to be subject to these sections even if the
facility's gasoline throughput later falls below the exemption
threshold.
(b)
A dispensing facility owned by an independent small
business
marketer of gasoline that has sales of less than 50,000
gallons
per month on an average in any 12-month period, beginning
with
the effective date of this section, and has 7 or less
dispensing
units is exempt only from the requirements of this act
pertaining
to the stage II vapor recovery system. For the purposes
of
this subdivision, an independent small business marketer of
gasoline
is a person engaged in the marketing of gasoline who,
without
the exemption provided for in this subdivision, would be
required
to pay for procurement and installation of vapor recovery
equipment
under this act but does not include a person who is any
of
the following:
(i) A refiner.
(ii) A person who controls, is controlled by, or is
under
common
control with, a refiner.
(iii) A person who is otherwise directly or indirectly
affiliated
with a refiner or with a person who controls, is
controlled
by, or is under a common control with a refiner, unless
the
sole affiliation is by means of a supply contract or an
agreement
or contract strictly applying to the use as a trademark,
trade
name, service mark, or other identifying symbol or name owned
by
the refiner or any such person.
(iv) A person who receives less than 50% of his or her
annual
income
from refining or marketing gasoline.
(2)
A person who claims an exemption under subsection (1)(b)
shall
provide to the director articles of incorporation, leasee
agreements,
supply contracts, or other adequate documentation to
support
the person's eligibility for the exemption. For the purpose
of
subsection (1)(b), "refiner" does not include a refiner whose
total
refinery capacity, including the refinery capacity of any
person
who controls, is controlled by, or is under common control
with
the refiner, does not exceed 65,000 barrels per day. For
purposes
of this subsection and subsection (1)(b), "control" of a
corporation
means ownership of more than 50% of its stock.
(2) (3)
A dispensing facility that claims or intends to
claim
exempt status under subsection (1)(a) (1) and which has
2,000 or more gallons stationary gasoline storage capacity
beginning in 1994 shall submit an annual report to the department
by March 1 of each year for gasoline dispensed during the preceding
year. These throughput records shall contain the quantity of
gasoline dispensed at the facility during each month of operation
for the preceding calendar year and shall list any period of time
the facility was not operational during the preceding calendar
year. The director shall review and verify the accuracy of the
documents before making final determination on eligibility for
exemption.
(4)
A gasoline dispensing facility exempt under subsection
(1)(b)
shall maintain records of the gasoline dispensed that will
allow
the gasoline throughput for each calendar month to be
continuously
determined. These records shall be maintained for 3
years
and shall be submitted to the director within 30 days after a
request.
(3) (5)
If a dispensing facility's gasoline throughput for
any calendar month ever exceeds the applicability threshold, the
operator shall notify the department within 30 days.
Sec.
9d. (1) An operator shall not transfer, permit the
transfer
of, or provide equipment for the transfer of gasoline from
a
stationary storage tank at a dispensing facility into a motor
vehicle
fuel tank unless an approved stage II vapor-recovery system
has
been installed and is properly used during the transfer. The
system
shall use coaxial hoses at the dispensers, and shall not
contain
any components, such as remote vapor check valves in
balance-type
systems that would significantly impede the
performance
of the functional tests required in section 9f.
(2)
The operator of a dispensing facility shall demonstrate
proper
stage II vapor-recovery system function by the vapor-
recovery
system compliance tests as required in section 9f.
(3)
The operator shall maintain the stage I and
stage II
vapor-recovery systems in proper operating condition as specified
by the manufacturer and free of defects that could impair the
effectiveness of the system. Any component identified as defective,
but which does not substantially impair the effectiveness of the
system, may remain in operation but shall be repaired or replaced
within
15 days after identification. Upon identification of any
substantial
defect, the operator shall immediately tag "out-of-
order"
all dispensing equipment for which stage II vapor recovery
has
been impaired. Tagged equipment shall be rendered inoperable
and
the tag or tags shall not be removed until the defective
equipment
has been repaired, replaced, or adjusted, as necessary.
(2) (4)
The stage I and stage II vapor-recovery
systems
and gasoline-dispensing equipment shall be maintained to have no
leaks.
(3) (5)
The operator shall conduct equipment inspections at
least
weekly to determine if the stage II I
vapor-recovery system
is operating in accordance with this act and rules promulgated
under this act. The inspection shall include all of the following:
(a) A visual inspection of motor vehicle refueling to ensure
that the flow shutoff mechanisms are working properly.
(b) An inspection of all boots, hoses, facecones, and
faceplates for tears or rips.
(c) A visual inspection of all dispensing equipment for any
gasoline leaks.
(d) An inspection of all gasoline delivery nozzles for
tightness, bends, and crimps that may impede vapor recovery.
(6)
A notice of the benefits and explanation of operation of a
stage
II vapor-recovery system shall be conspicuously posted in a
manner
specified by the department in accordance with section
9h(1)(d).
(4) (7)
A person shall not repair, modify, or permit the
repair
or modification of the stage I or stage II vapor-recovery
system or its components so that they are different from their
approved configuration; or tamper with, or permit tampering with,
the system in a manner that would impair the operation or
effectiveness of the system.
(8)
The operator shall recertify the function of the stage II
vapor-recovery
system at least every 5 years or upon major system
replacement
or modification, whichever comes first. Recertification
requires
a leak test and all other functional tests required by the
department.
(9)
The operator shall ensure that at least 1 employee of the
dispensing
facility possesses a valid training certificate on the
operation
and maintenance of the stage II vapor-recovery system and
on
the vapor-recovery program and its requirements, as specified in
section
9e. If the dispensing facility employee who completed the
training
course leaves the employment of the dispensing facility,
at
least 1 other employee of the dispensing facility shall
successfully
complete a training course within 90 days after the
departure
of the previously trained employee. If a dispensing
facility
changes the type of stage II vapor-recovery system used by
the
facility, new training or retraining of an employee under this
subsection
shall be completed before the start-up of the new vapor-
recovery
system.
Sec. 9g. (1) An operator shall maintain accurate records of
all of the following at the dispensing facility location:
(a) All current licenses and permits required to operate the
dispensing facility.
(b)
Current proof of attendance and completion of the training
specified
in section 9d(9).
(b) (c)
The location, including the contact person's name,
address, and telephone number, of the records required under this
act which are not maintained at the dispensing facility location.
(2) An operator shall maintain accurate stage I vapor-recovery
or
gasoline-dispensing equipment maintenance records
of both of
the
following on forms approved
by the department for 3 years. :
(a)
Installation and compliance testing results required under
section
9f.
(b)
Maintenance records on forms approved by the department.
(3) The records required by subsection (2) shall be maintained
for 1 year at the dispensing facility location. After this time
these records may be maintained at another business location.
(4) Records required under this act and maintained at the
dispensing facility location shall be made available to the
director upon request during normal business hours. If records
required under this section are not maintained at the dispensing
facility location, the records shall be provided to the director
within 72 hours of a request.
Sec. 9h. (1) To implement this section and sections 9a to 9g,
the director shall do all of the following:
(a) Develop and conduct training for department inspectors to
provide
knowledge and proficiency on all stage I vapor-recovery
program requirements and procedures.
(b) Prepare information on the purposes and benefits of stage
I vapor-recovery controls and distribute this information to
regulated facilities.
(c)
Prepare for the general public information on the benefits
and
purpose of the stage II vapor-recovery program and the proper
use
of the equipment.
(d)
The director shall design a uniform means of providing the
notice
required by section 9d(6). The notice shall be designed in
such
a manner that the consumer can readily understand the benefits
and
operation of a stage II vapor-recovery system.
(c) (e)
Conduct a minimum of 1 compliance inspection per
year per dispensing facility, with mandatory reinspection of
dispensing facilities that are found to be in violation of this act
or rules promulgated under this act. A compliance inspection
consists
of the inspection of the records required in section 9g ,
inspection
of facility equipment as required in section 9c, and
functional testing of the equipment.
(d) (f)
Monitor the compliance of the regulated facilities
with this act through data collection, including applications and
required documents.
(e) (g)
Investigate complaints and initiate and conduct
other investigations on possible violations of this act.
(2)
If the director finds a defect in a stage I or stage II
vapor-recovery system, the director shall reject or condemn and
mark the equipment as "rejected" or "condemned". Equipment that is
rejected or condemned and ordered corrected or disposed of shall
remain under the control of the director until suitable repair or
disposition has been made under this section. The operator of the
rejected or condemned equipment shall cause it to be made correct
within the specified time period authorized by the director, or may
dispose of the equipment in a manner specified by the director.
Equipment that has been rejected or condemned and ordered corrected
or disposed of may be confiscated and may be destroyed by the
director if not corrected as required by, or if disposed of
contrary to the requirements of, this section.
(3) If necessary for the enforcement of this act or rules
promulgated under this act, the director may do all of the
following:
(a) Issue stop-use orders, hold orders, or removal orders for
stage
I or stage II vapor-recovery and gasoline-dispensing
equipment. A person shall not use, remove from the premises
specified, or fail to remove from the premises specified any stage
I
or stage II vapor-recovery or gasoline-dispensing equipment
contrary to any order issued pursuant to this section.
(b) Seize for use as evidence without formal warrant, any
incorrect
or unapproved stage I or stage II vapor-recovery system
or dispensing equipment found to be used or exposed for use in
violation of this act or rules promulgated under this act.
(4) With respect to enforcement of this act, the director has
the power of a peace officer.
(5) The director may petition a court of competent
jurisdiction for a temporary restraining order or permanent
injunction restraining a person from violating this act or a rule
promulgated under this act.
Sec. 9i. (1) A dispensing facility in the county of Wayne,
Oakland, Macomb, Washtenaw, Livingston, Monroe, or St. Clair
constructed after November 15, 1990 shall obtain a dispensing
permit. The fee for a dispensing permit is $25.00 for each year or
portion of a year.
(2) Before a dispensing permit is issued, a dispensing
facility
shall install an approved stage I and, if required, stage
II
vapor-recovery system and, in addition to the fee
for the
dispensing permit, shall pay a registration fee for each dispensing
unit located at the dispensing facility. A permit shall not be
issued or renewed until all fees and administrative fines issued
under section 10a are paid. A hearing shall not be required before
the refusal to issue or renew a permit under this subsection.
(3) A dispensing permit expires annually on November 30 unless
renewed before December 1 of each year or unless suspended, denied,
or revoked by the department. Application for a dispensing permit
shall be made on a form furnished by the department. The completed
form shall contain the information requested by the department and
shall be accompanied by the fees specified.
(4) The director may suspend, deny, or revoke a dispensing
permit issued pursuant to this act for failure to pay the fee
required by subsection (1) or (2) or for failure to comply with the
requirements of sections 9a to 10c.
(5)
A fee shall be charged to the operator of stage I and
stage
II vapor-recovery or gasoline-dispensing equipment for
its
inspection if any of the following occur:
(a) The inspection is a reinspection of equipment that has
already
been tested and found to contain a substantial defect. as
defined
under section 9c.
(b) The inspection is performed at the request of the
operator.
(6) The department shall establish the fees and expenses for
special services, including the fee for an operator requested
inspection or reinspection, for registrations, for training
courses, and for accreditation of a trainer, to provide that each
fee is sufficient to cover the cost of an operator requested
inspection, reinspection, registration, training, or trainer
accreditation, respectively, and that the aggregate of all fees
collected is sufficient to pay for all salaries and other expenses
connected with the activity. The department shall review and adjust
the fees at the end of each year and have all fees approved by the
director before they are adopted. Fees collected under this section
shall be deposited in the gasoline inspection and testing fund and
reserved for conducting the vapor-recovery program.
(7) Subject to subsection (2) and beginning on the effective
date of the amendatory act that added this subsection, the
department shall issue an initial or renewal permit not later than
120 days after the applicant files a completed application. If the
application is considered incomplete by the department, the
department shall notify the applicant in writing or make
notification electronically available within 40 days after receipt
of the incomplete application, describing the deficiency and
requesting the additional information. The 120-day period is tolled
upon notification by the department of a deficiency until the date
all of the information requested during the 40-day period is
received by the department. The determination of the completeness
of an application does not operate as an approval of the
application for the permit and does not confer eligibility of an
applicant determined otherwise ineligible for issuance of a permit.
Requests for new or additional information by the department that
fall outside the initial 40-day period do not toll the 120-day
period.
(8) If the department does not issue or deny a permit within
120 days after the receipt of a completed application, the
department shall return the permit fee and shall reduce the permit
fee for the applicant's next renewal application, if any, by 15%.
The failure to issue a permit within the time required under this
subsection does not allow the department to otherwise delay the
processing of the application, and that application, upon
completion, shall be placed in sequence with other completed
applications received at that same time. The department shall not
discriminate against an applicant in the processing of an
application based on the fact that the application fee was refunded
or discounted under this subsection.
(9) Beginning October 1, 2005, the director of the department
shall submit a report by December 1 of each year to the standing
committees and appropriations subcommittees of the senate and house
of representatives concerned with motor fuel quality issues. The
director shall include all of the following information in the
report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the
department received and completed within the 120-day time period
described in subsection (7).
(b) The number of applications denied.
(c) The number of applications not issued within the 120-day
period and the amount of money returned to permittees under
subsection (8).
(10) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
permitting fees as well as any other information, records,
approval, security, or similar item required by law or rule from a
local unit of government, a federal agency, or a private entity but
not from another department or agency of the state of Michigan.
Sec. 9j. (1) A person shall not deliver gasoline or permit the
delivery of gasoline to a dispensing facility that lacks a stage I
vapor-recovery system.
(2) Prior to delivery of gasoline to a dispensing facility, a
delivery
vessel shall be certified by the department of natural
resources
environmental quality as vapor tight by meeting the
requirements of R 336.1627 of the Michigan Administrative Code.
(3) A person shall not deliver gasoline or permit the delivery
of gasoline to a dispensing facility unless the stage I vapor-
recovery system is employed during delivery and the dispensing
facility storage tank is equipped with a permanent submerged fill
pipe.
(4) A stage I vapor-recovery system shall include a properly
functioning interlocking system or procedure that ensures that the
vapor-tight collection line is connected before any gasoline is
loaded, or shall include an equivalent system approved by the
department.
(5) A stage I vapor-recovery system shall have a poppetted
drybreak on the vapor return or an equivalent system approved by
the department.
(6)
All open vent pipes for a stage I or stage II vapor-
recovery system that are on stationary tanks at dispensing
facilities shall be equipped with pressure-vacuum relief valves in
a system approved by the department.
(7) A dispensing facility regulated under this act is not
subject to R 336.1606 or R 336.1703, or both, of the Michigan
Administrative Code. This subsection does not apply to a delivery
vessel which shall continue to be subject to the rules listed in
this subsection.
Sec. 9k. If the governor declares an emergency under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421, or
1982 PA 191, MCL 10.81 to 10.89, the governor may exercise his or
her discretion to grant a temporary variance suspending the low
vapor pressure fuel provisions of this act or rules promulgated
under this act if the governor concludes it is necessary to avoid
disruptions in fuel supply. Fuel manufactured, sold, distributed,
offered for sale or distribution, dispensed, offered for supply,
stored, or transported under the variance shall be deemed compliant
with this act. The fine described in section 9l does not apply to a
variance described in this section.
Sec. 9l. (1) A gasoline refiner, distributor, or terminal may
petition the department for a temporary variance from the Reid
vapor pressure standards established by the director. In order to
receive a variance, the refiner, distributor, or terminal shall
demonstrate that fuel necessary to meet the current standard cannot
be supplied and that the refiner, distributor, or terminal has
taken and will continue to take all reasonable steps to minimize
the Reid vapor pressure of fuel during the period the variance is
in effect. If the department finds that the reason fuel that would
allow the refiner, distributor, or terminal to meet the standard is
not available is beyond the control of the refiner, distributor, or
terminal and that compliance with the Reid vapor pressure standard
would result in fuel shortages that cannot otherwise be made up,
the department may grant the variance. The variance shall be
granted only for the minimum period necessary and in no event shall
the department grant a variance for longer than 20 days. The
allowable Reid vapor pressure under the variance shall be the
minimum the department considers necessary and in no event shall
allow the refiner, distributor, or terminal to operate with a Reid
vapor pressure of greater than 9.0 psi.
(2) A fine of 10 cents per gallon of fuel sold or released for
sale during the variance period shall be collected by the
department for every variance granted. After 2006, the amount of
the fine shall be the amount charged in 2006 annually adjusted by
the same percentage increase or decrease as the increase or
decrease in the Detroit consumer price index. The department shall
collect the fines on forms generated by the department and shall
establish a payment schedule for payment of fines. Fines collected
under this section shall be deposited in the air quality mitigation
fund and shall be appropriated annually by the legislature for air
quality mitigation projects in the geographic area of the refiner,
distributor, or terminal.
Sec. 10b. (1) A person who individually, or by the action of
his or her agent or employee, or as the agent or employee of
another, performs any of the following is guilty of a misdemeanor
punishable
by imprisonment for not more than 90 days , or a fine
of not less than $1,000.00 or more than $2,000.00, or both:
(a) Renders less effective or inoperable any part of a stage I
or
stage II vapor-recovery system.
(b) Makes a false statement, representation, or certification
on an application, report, plan, label, or other document that is
required to be maintained under this act or rules promulgated under
this act.
(c) Fails to disclose to the department any knowledge or
information relating to or observation of any modification of a
stage
I or stage II vapor-recovery system which makes the system
less effective or inoperable, or falsification of records required
to be maintained under this act or rules promulgated under this
act.
(d) Removes a tag, seal, or mark placed on a dispensing device
by the director.
(e) Violates this act or a rule promulgated under this act for
which a specific penalty is not prescribed.
(2) A person who individually, or by the action of his or her
agent or employee, or as the agent or employee of another, performs
any of the following acts is guilty of a misdemeanor punishable by
imprisonment
for not more than 90 days , or a
fine of not less
than $2,000.00 or more than $10,000.00, or both:
(a) Violates a prohibited act listed in this section within 24
months after another violation of this section that results in a
conviction.
(b) Impersonates in any way the director or any department
inspector.
(3) A person who individually, or by the action of his or her
agent or employee, or as the agent or employee of another, performs
any of the following acts is guilty of a felony punishable by
imprisonment
for not more than 2 years , or a
fine of not less
than $10,000.00 or more than $15,000.00, or both:
(a) Intentionally commits a prohibited act under this section.
(b) Violates a prohibited act listed in this section within 24
months after 2 previous violations of this section that result in
convictions.
(4) If a violation of this section results in a conviction,
the court shall assess against the defendant the costs of the
department's investigation, and these costs shall be paid to the
state treasury and deposited in the gasoline inspection and testing
fund to be used for the enforcement of this act.
Sec.
10c. (1) The director may suspend the requirements of
sections
9a through 9g, 9i, and 9j for any area of the state that
is
formally redesignated by the E.P.A. as an attainment area for
ozone
in accordance with the requirements of the E.P.A. and section
107(d)(3)(D)
of part A of title I of the clean air act, chapter
360,
84 Stat. 1678, 42 U.S.C. 7407, if the redesignation by the
E.P.A.
identifies the stage II vapor control program as unnecessary
to
maintain the national ambient air quality standards for ozone in
the
affected area. However, the director retains the authority to
implement
the stage II vapor control program as a contingency
measure
in any such formally redesignated area consistent with the
redesignation
request as approved by the E.P.A. and the
requirements
of the clean air act.
(2)
Any area of the state that is formally redesignated by the
E.P.A.
as an attainment area for ozone in accordance with the
requirements
of the E.P.A. and section 107(d)(3)(D) of part A of
title
I of the clean air act, chapter 360, 84 Stat. 1678, 42 U.S.C.
7407,
and has demonstrated maintenance of the standards without the
stage
I vapor control program is exempt from the requirements of
sections
9a to 9f, 9i, and 9j. However, the The
director retains
the
authority to implement the stage I vapor control program as
a
contingency
measure in any such formally redesignated area
consistent
with the redesignation request as approved by the E.P.A.
and
the requirements of the clean air act in areas where it is
determined necessary to attain or maintain natural ambient air
quality standards.
(3)
The director shall suspend the requirements of this act
pertaining
to the stage II vapor control program contained in
sections
9a to 9g and section 9i when the E.P.A. promulgates final
onboard
vehicle vapor control rules pursuant to section 202(a)(6)
of
part A of title II of the clean air act, chapter 360, 79 Stat.
992,
42 U.S.C. 7521. However, the director retains the authority to
implement
the stage II vapor control program as a contingency
measure
in the maintenance plan for an area formally redesignated
by
the E.P.A. as an attainment area for ozone if an actual
violation
of the ozone standard is observed in that area. In
addition,
the director may only implement the contingency measure
regarding
the stage II vapor control program in 1 or more of the
following
counties:
(a)
Macomb county.
(b)
Oakland county.
(c)
Washtenaw county.
(d)
Wayne county.
(e)
Kent county.
(f)
Muskegon county.
(g)
Ottawa county.
(4)
Except as otherwise provided in subsection (3), for all of
the
counties listed in subsection (3), if the ozone nonattainment
area
is redesignated by the E.P.A. as an attainment area, the
director
shall not implement the stage II vapor control program in
that
area as provided for in section 9a to 9g and 9i.
Sec.
10d. Any area of the state that is formally redesignated
by
the E.P.A. as an attainment area for ozone in accordance with
the
requirements of the E.P.A. and Section 107(d)(3)(D) of Part A
of
title I of the clean air act, chapter 360, 84 Stat. 1678, 42
U.S.C.
7407, and has demonstrated maintenance of the standards
without
the Reid vapor pressure requirement of 7.8 psi for
dispensing
facilities during the period beginning June 1 through
September
15 of each year is exempt from that requirement of
sections
9a to 9g, 9i, and 9j. However, the Beginning
June 1
through September 15 of 2007 and for that period of time each
subsequent year, the Reid vapor pressure standard shall be 7.0 psi
for dispensing facilities in Wayne, Oakland, Macomb, Washtenaw,
Livingston, Monroe, St. Clair, and Lenawee counties. The director
retains the authority to implement the Reid vapor pressure 7.0 psi
requirement
or 7.8 psi requirement for
dispensing facilities as a
contingency
measure in any such formally redesignated area
consistent
with the redesignation request as approved by the E.P.A.
and
the requirements of the clean air act in areas where it is
determined necessary to attain or maintain national ambient air
quality standards. If an area of the state that is required to use
a low vapor pressure fuel of 7.8 psi or 7.0 psi has been
redesignated by the United States environmental protection agency
as in attainment of national ambient air quality standards, and the
Michigan department of environmental quality has demonstrated that
maintenance of the national ambient air quality standards can be
achieved without the use of low vapor pressure fuel, the director
may, with the approval of the United States environmental
protection agency, terminate the low vapor pressure fuel
requirement for that area.
Enacting section 1. Sections 9c, 9e, and 9f of the motor fuels
quality act, 1984 PA 44, MCL 290.649c, 290.649e, and 290.649f, are
repealed.