SENATE BILL No. 538

 

 

May 25, 2005, Introduced by Senator BROWN and referred to the Committee on Agriculture, Forestry and Tourism.

 

 

 

     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

 

from the production and processing of agricultural products, animal

 

wastes, or food processing wastes.

 

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

 

quality.


 

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

 

environmental quality.

 

     (d) "Eligible farmer" 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. Eligible farmer does not include a person who has

 

been found guilty of a criminal violation under, or a person who

 

has been determined responsible for 2 or more civil violations

 

under, part 31 within a 1-year period immediately preceding the

 

date of application for a loan under section 14513.

 

     (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.

 

     (iv) The use of agricultural biomass by a qualified

 

agricultural energy production system.


 

     (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

 

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, an applicant

 

seeking to implement a pollution prevention project under section

 

14501(f)(iv) shall meet all of the following requirements:

 

     (a) Be an eligible farmer.

 

     (b) Be verified under the Michigan agriculture environmental

 

assurance program established by Michigan state university in

 

conjunction with agricultural producers and other interested

 

groups.

 

     (c) Have applied for 1 or more of the following:

 

     (i) A grant under the renewable energy systems and energy

 

efficiency improvements program created under 7 USC 8106.

 

     (ii) A conservation innovation grant under 16 USC 3839aa-8.

 

     (iii) A grant under any other federal program that provides

 

assistance for qualified agricultural energy production systems.

 

     (iv) A contract to receive a cost-share payment for a

 

structural practice under the environmental quality incentives

 

program under 16 USC 3839aa to 3839aa-7.

 

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

 

be  not exceed $150,000.00  , and a  or, for a pollution prevention


 

project under section 14501(f)(iv), $200,000.00. A small business

 

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

 

pollution prevention project under section 14501(f)(iv) shall not

 

receive more than 1 loan, whether or not it is a small business.

 

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).