HOUSE BILL No. 6540

 

September 20, 2006, Introduced by Reps. Kolb, Lipsey, Alma Smith, Tobocman and Plakas and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

(MCL 324.101 to 324.90106) by adding part 56.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                PART 56. GREENHOUSE GAS EMISSION REPORTING

 

     Sec. 5601. As used in this part:

 

     (a) "Carbon dioxide equivalents" means the amount of each GHG

 

that makes the same contribution to global warming as 1 metric ton

 

of carbon dioxide, as determined by the department.

 

     (b) "Clean air act" means that term as defined in section

 

5501.

 

     (c) "Department" means the department of environmental

 

quality.


 

     (d) "Direct GHG emissions" means greenhouse gas emissions

 

released from a mandatory reporting facility or a facility that is

 

owned or operated by a person submitting information under this

 

part.

 

     (e) "Director" means the director of the department.

 

     (f) "Facility" means all buildings, structures, or

 

installations owned or operated by a person and located on any 1 or

 

more contiguous or adjacent parcels of property.

 

     (g) "GHG database" means a record of GHG emissions reported by

 

mandatory reporting facilities and established under section 5605.

 

     (h) "GHG emissions" includes all of the following emissions of

 

a greenhouse gas:

 

     (i) Stationary combustion source emissions, which are emitted

 

as a result of combustion of fuels in stationary equipment such as

 

boilers, furnaces, burners, turbines, heaters, incinerators,

 

engines, flares, and other similar sources.

 

     (ii) Process emissions, which consist of emissions from

 

chemical or physical processes other than combustion.

 

     (iii) Fugitive emissions, which consist of intentional and

 

unintentional emissions from equipment leaks such as joints, seals,

 

packing, and gaskets or from piles, pits, cooling towers, and other

 

similar sources.

 

     (i) "Greenhouse gas" or "GHG" means the gaseous form of carbon

 

dioxide, methane, nitrous oxide, hydrofluorocarbons,

 

perfluorocarbons, or sulfur hexafluoride.

 

     (j) "Mandatory reporting facility" means a facility to which

 

either or both of the following apply:


 

     (i) During the preceding calendar year, the facility or any

 

part thereof was required to report information on any of its air

 

emissions to the department under part 55 or to the United States

 

environmental protection agency under the clean air act.

 

     (ii) During the preceding calendar year, the facility or any

 

part thereof had GHG emissions of more than 10,000 metric tons,

 

measured in carbon dioxide equivalents.

 

     Sec. 5603. (1) Not later than July 1 of each calendar year,

 

beginning in 2007, each mandatory reporting facility shall submit

 

to the department a report that states, for the preceding calendar

 

year, the mandatory reporting facility's GHG emissions, expressed

 

in units of carbon dioxide equivalents.

 

     (2) Upon establishment of the GHG database, any person may

 

submit to the department a report that states the total emissions

 

of the person for years after 1990 for which there is verifiable

 

information.

 

     Sec. 5605. (1) The department, in consultation with private

 

businesses and nongovernmental organizations, shall establish,

 

operate, and maintain a greenhouse gas database, to collect,

 

verify, record, and analyze information on GHG emissions and to

 

establish baselines for mandatory reporting facilities against

 

which any future federal or state GHG emissions reduction

 

requirements may be applied.

 

     (2) Before including any information reported to the

 

department in the database, the department shall verify the

 

completeness, consistency, and accuracy of the information in

 

conformance with the rules promulgated under section 5607.


 

     (3) The department shall publish the GHG database for

 

distribution to the public and post the GHG database on its

 

website, except for information to which 1 or more of the following

 

apply, as determined by the department:

 

     (a) Disclosure of the information poses a risk to national

 

security.

 

     (b) The information is confidential business information the

 

disclosure of which would cause competitive harm and cannot be

 

derived from information that is otherwise publicly available.

 

     Sec. 5607. (1) The department shall promulgate rules to

 

establish methods and procedures for all of the following:

 

     (a) Reporting information to the GHG database.

 

     (b) Calculating, estimating, or otherwise quantifying direct

 

GHG emissions and any other GHG emissions that the department

 

determines may be reported to the GHG database.

 

     (c) Verifying information reported to the database.

 

     (d) Determining that a particular facility is a mandatory

 

reporting facility.

 

     (e) Complying with the requirements of section 5605(3).

 

     (f) Minimizing the cost, inconvenience, and general burden of

 

reporting on the mandatory reporting facilities.

 

     (g) General supervision and administration of this part.

 

     (2) Within 6 months after the effective date of this part, the

 

department shall submit rules proposed under subsection (1) for a

 

public hearing pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     Sec. 5609. (1) An individual who violates this part or a rule


 

promulgated under this part is guilty of a misdemeanor punishable

 

by imprisonment for not more than 90 days or a fine of not more

 

than $500.00, or both.

 

     (2) A person, other than an individual, that violates this

 

part or a rule promulgated under this part is guilty of a felony

 

punishable by imprisonment for not more than 4 years or a fine of

 

not more than $5,000.00, or both.

 

     (3) The director, after notice and an opportunity for a

 

hearing, may impose upon a person that violates this part or a rule

 

promulgated under this part an administrative fine of not more than

 

$2,000.00 or, for a violation committed after a conviction or

 

administrative determination of a first violation, an

 

administrative fine of not more than $4,000.00.