June 5, 2008, Introduced by Rep. Bennett and referred to the Committee on Appropriations.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 19607, 19608, 19608a, 19613, and 19614 (MCL
324.19607, 324.19608, 324.19608a, 324.19613, and 324.19614),
sections 19607, 19613, and 19614 as added by 1998 PA 288, section
19608 as amended by 2003 PA 252, and section 19608a as added by
2003 PA 253.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19607. (1) The total proceeds of all bonds authorized by
the electors of this state in 1998 shall be deposited into the fund
and allocated as follows:
(a) Not more than $335,000,000.00 shall be used for response
activities at facilities.
(b) Not more than $50,000,000.00 shall be used for waterfront
improvements.
(c) Not more than $25,000,000.00 shall be used for remediation
of contaminated lake and river sediments.
(d) Not more than $50,000,000.00 shall be used for nonpoint
source pollution prevention and control projects or wellhead
protection projects.
(e) Not more than $90,000,000.00 shall be used for water
quality monitoring and water resources protection and pollution
control activities.
(f) Not more than $20,000,000.00 shall be used for pollution
prevention programs.
(g) Not more than $5,000,000.00 shall be used to abate lead
hazards.
(h) Not more than $50,000,000.00 shall be used for state park
infrastructure improvements.
(i) Not more than $50,000,000.00 shall be used for local
recreation projects.
(2) The total proceeds of all bonds authorized by the electors
of this state in 2008 shall be deposited into the fund and
allocated as follows:
(a) Not more than $700,000,000.00 shall be used for response
activities at facilities.
(b) Not more than $100,000,000.00 shall be used for brownfield
redevelopment grants and loans.
(c) Not more than $5,000,000.00 shall be used for prevention
and management of aquatic invasive species.
(d) Not more than $65,000,000.00 shall be used for habitat
conservation and restoration and species management activities.
(e) Not more than $60,000,000.00 shall be used to improve
drinking water infrastructure and support source water protection.
(f) Not more than $100,000,000.00 shall be used for
remediation of contaminated lake and river sediments.
(g) Not more than $65,000,000.00 shall be used for nonpoint
source pollution prevention and control grant projects.
(h) Not more than $20,000,000.00 shall be used for pollution
prevention programs.
(i) Not more than $25,000,000.00 shall be used for water
quality monitoring.
(j) Not more than $50,000,000.00 shall be used for waterfront
improvements.
(k) Not more than $20,000,000.00 shall be used to abate lead
hazards.
(l) Not more than $35,000,000.00 shall be used for the
conservation reserve enhancement program.
(m) Not more than $20,000,000.00 shall be used for the
conservation assistance program and the Michigan agriculture
environmental assurance program for activities that protect
groundwater and surface water.
(n) Not more than $35,000,000.00 shall be used for grants to
establish conservation easements in support of farmland
preservation and of open space preservation for protection of water
quality and ecologically sensitive areas.
(3) (2)
The state treasurer shall direct
the investment of the
fund. Except as may be required to maintain the exclusion from
gross income of the interest paid on the bonds or to comply
otherwise with state or federal law, interest and earnings from
investment of the proceeds of any bond issue shall be allocated in
the same proportion as earned on the investment of the proceeds of
the bond issue.
(4) (3)
Except as may be required to
maintain the exclusion
from gross income of the interest paid on the bonds or to comply
otherwise with state or federal law, all repayments of principal
and interest earned under a loan program authorized by this part
shall be credited to the appropriate restricted subaccount of the
fund and used for the purposes authorized for that subaccount or to
pay debt service on any obligation issued which pledges the loan
repayments and the proceeds of which are deposited in that
subaccount.
(5) (4)
The bond proceeds shall be expended
in an appropriate
manner that maintains the tax exempt status of the bonds.
(6) (5)
The unencumbered balance in the
fund at the close of
the fiscal year shall remain in the fund and shall not revert to
the general fund.
(7) (6)
The department shall provide an
annual accounting of
bond proceeds spending on a cash basis to the department of
treasury in order for the state to comply with requirements set
forth for issuing tax exempt bonds, including arbitrage rebate
calculations. This accounting shall be submitted in an electronic
format
to the governor, the standing
committees of the house of
representatives
and the senate that primarily address issues
pertaining
to the protection of natural resources and the
environment,
and the appropriations committees in the house of
representatives
and the senate. the clerk of
the house of
representatives, and the secretary of the senate.
Sec. 19608. (1) Money in the fund that is allocated under
section
19607 19607(1) shall be used for the following purposes:
(a) Money allocated under section 19607(1)(a) shall be used by
the department to fund all of the following:
(i) Corrective actions undertaken by the department to address
releases from leaking underground storage tanks pursuant to part
213.
(ii) Response activities undertaken by the department at
facilities pursuant to part 201 to address public health and
environmental problems or to promote redevelopment.
(iii) Assessment activities undertaken by the department to
determine whether a property is a facility.
(iv) $75,000,000.00 shall be used to provide grants and loans
to local units of government and brownfield redevelopment
authorities created under the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2672, for response activities
at known or suspected facilities with redevelopment potential. Of
the money provided for in this subparagraph, not more than
$37,500,000.00 shall be used to provide grants and not more than
$37,500,000.00 shall be used to provide loans pursuant to the clean
Michigan initiative revolving loan program created in section
19608a. However, grants or loans provided for in this subparagraph
shall not be made to a local unit of government or a brownfield
redevelopment authority that is responsible for causing a release
or threat of release under part 201 at the site proposed for grant
or loan funding.
(v) Not more than $12,000,000.00 shall be used for grants
pursuant to the municipal landfill grant program under section
20109a.
(b) Money allocated under section 19607(1)(b) shall be used
for waterfront redevelopment grants pursuant to part 795.
(c) Money allocated under section 19607(1)(c) shall be used
for response activities for the remediation of contaminated lake
and river sediments pursuant to part 201.
(d) Money allocated under section 19607(1)(d) shall be used
for nonpoint source pollution prevention and control grants or
wellhead protection grants pursuant to part 88.
(e) Money allocated under section 19607(1)(e) shall be
deposited into the clean water fund created in section 8807.
(f) Money allocated under section 19607(1)(f) shall be
expended as follows:
(i) $10,000,000.00 shall be deposited into the retired
engineers technical assistance program fund created in section
14512.
(ii) $5,000,000.00 shall be deposited into the small business
pollution prevention assistance revolving loan fund created in
section 14513.
(iii) $5,000,000.00 shall be used by the department to implement
pollution prevention activities other than those funded under
subparagraphs (i) and (ii).
(g) Money that is allocated under section 19607(1)(g) shall be
used by the department of community health for remediation and
physical improvements to structures to abate or minimize exposure
of persons to lead hazards.
(h) Money allocated under section 19607(1)(h) shall be used
for infrastructure improvements at Michigan state parks as
determined by the department of natural resources. The installation
or upgrade of drinking water systems or rest room facilities shall
be the first priority.
(i) Money allocated under section 19607(1)(i) shall be used to
provide grants to local units of government for local recreation
projects pursuant to part 716.
(2) Of the money allocated under section 19607(1)(a),
$93,000,000.00 shall be used for facilities that pose an imminent
or substantial endangerment to the public health, safety, or
welfare, or to the environment. For purposes of this subsection,
facilities that pose an imminent or substantial endangerment shall
include, but are not limited to, those where public access poses
hazards because of potential exposure to chemicals or safety risks
and where drinking water supplies are threatened by contamination.
(3) Before expending any funds allocated under subsection
(1)(c) at a site that is an area of concern as designated by the
parties to the Great Lakes water quality agreement, the department
shall notify the public advisory council established to oversee
that area of concern regarding the development, implementation, and
evaluation of response activities to be conducted with money in the
fund at that area of concern.
(4)
Money in the fund shall not be used to develop a municipal
or
commercial marina.
(4) Money in the fund that is allocated under section 19607(2)
shall be used for the following purposes:
(a) Money allocated under section 19607(2)(a) shall be used by
the department to fund the following:
(i) Response activities undertaken by the department at
facilities under this act to address threats to the public health,
safety, and welfare and the environment or to promote
redevelopment.
(ii) Assessment activities undertaken by the department to
determine whether a property is a facility.
(b) Money allocated under section 19607(2)(b) shall be used by
the department to fund the following:
(i) $100,000,000.00 shall be used to provide grants and loans
to local units of government and brownfield redevelopment
authorities created under the brownfield redevelopment financing
act, 1996 PA 381, MCL 125.2651 to 125.2672, for baseline
environmental assessments, due care activities, and remedial
activities at known or suspected facilities with redevelopment
potential.
(ii) Of the money provided for in subparagraph (i), not more
than $80,000,000.00 shall be used to provide grants and not more
than $20,000,000.00 shall be used to provide loans under the
revolving loan program created in section 19608a.
(c) Money allocated under section 19607(2)(c) shall be used
for prevention and management of aquatic invasive species.
(d) Money allocated under section 19607(2)(d) shall be used
for habitat and species restoration and protection activities.
(e) Money allocated under section 19607(2)(e) shall be
deposited in the state drinking water revolving fund established
under section 16b of the shared credit rating act, 1985 PA 227, MCL
141.1066b.
(f) Money allocated under section 19607(2)(f) shall be used
for response activities for the remediation of contaminated lake
and river sediments pursuant to part 201 and part 31.
(g) Money allocated under section 19607(2)(g) shall be used
for any of the following:
(i) No point source activities for any of the following:
(A) The development of nonpoint source watershed management
plans.
(B) The implementation of approved nonpoint source watershed
management plans.
(C) The implementation of programs to identify and correct
illicit connections to storm sewer systems.
(D) Wellhead protection activities.
(E) No point source activities affecting human health or the
environment as determined by the department.
(ii) Activities to identify and address sources of
microorganisms causing impairment or restrictions on use of waters
of the state for body contact recreation.
(h) Money allocated under section 19607(2)(h) shall be
expended as follows:
(i) $5,000,000.00 shall be deposited into the retired engineers
technical assistance program fund created in section 14512.
(ii) $15,000,000.00 shall be used by the department to
implement pollution prevention activities other than those funded
under subparagraph (i).
(i) Money allocated under section 19607(2)(i) shall be used
for water quality monitoring activities.
(j) Money allocated under section 19607(2)(j) shall be used
for waterfront redevelopment activities under part 795.
(k) Money that is allocated under section 19607(2)(k) shall be
used by the department of community health for remediation and
physical improvements to structures to abate or minimize exposure
of persons to lead hazards.
(l) Money allocated under section 19607(2)(l) shall be used to
fund the conservation reserve enhancement program under part 82.
(m) Money allocated under section 19607(2)(m) shall be used to
fund implementation of practices to protect groundwater and surface
water and to fund technical assistance to support the Michigan
agriculture environmental assurance program under part 82.
(n) Money allocated under section 19607(2)(n) shall be used to
provide grants to establish conservation easements in support of
farmland preservation and of open space preservation for protection
of water quality and ecologically sensitive areas under parts 361
and 362.
(5) Of the money allocated under section 19607(2)(a),
$550,000,000.00 shall be used by the department for response
activities at facilities that pose an imminent or substantial
endangerment to the public health, safety, or welfare or to the
environment. For purposes of this subsection, facilities that pose
an imminent or substantial endangerment shall include, but are not
limited to, facilities where public access poses hazards because of
potential exposure to chemicals or safety risks and where drinking
water supplies are threatened by contamination.
(6) Of the money allocated under section 19607(2)(a),
$150,000,000.00 shall be used by the department for response
activities at facilities to promote redevelopment.
(7) (5)
Money provided in the fund
may be used by the
department of treasury to pay for the cost of issuing bonds and by
the department, the department of agriculture, the department of
community health, and the department of natural resources to pay
department costs as provided in this subsection. Not more than 3%
of the total amount specified in section 19607(1)(a) to (f) and not
more than 6% of the total amount specified in section 19607(2)(a)
to (j) shall be available for appropriation to the department to
pay
its costs directly associated with the completion of a project
authorized
by section 19607(1)(a) to (f) department
costs under
this part. Not more than 3% of the total amount specified in
section 19607(1)(h) and (i) shall be available for appropriation to
the department of natural resources to pay its costs directly
associated with the completion of a project authorized by section
19607(1)(h) and (i). Not more than 6% of the total amount specified
in section 19607(2)(l) to (n) shall be available for appropriation
to the department of agriculture to pay department costs in support
of this part. Not more than 6% of the total amount specified in
section 19607(2)(k) shall be available for appropriation to the
department of community health to pay department costs in support
of this part. Project management costs are eligible as direct
charges to the projects or programs allocated in section 19607(2)
and shall not be considered department costs. It is the intent of
the legislature that general fund appropriations to the department,
and
to the department of agriculture,
the department of community
health, the department of natural resources, and the department of
treasury shall not be reduced as a result of costs funded pursuant
to this subsection.
(8) (6)
Money in the fund shall not
be used to develop a
municipal or commercial marina. A grant shall not be provided under
this part for a project that is located at any of the following:
(a) Land sited for use as a gaming facility or as a stadium or
arena for use by a professional sports team.
(b) Land or other facilities owned or operated by a gaming
facility or by a stadium or arena for use by a professional sports
team.
(c) Land within a project area described in a project plan
pursuant
to under the economic development corporations act, 1974
PA 338, MCL 125.1601 to 125.1636, for a gaming facility.
(9) (7)
The department, the department of agriculture, the
department of natural resources, and the department of community
health shall each submit annually a list of all projects that will
be
undertaken by that each department that are recommended to be
funded under this part. The list shall be submitted in an
electronic format by February 15 of each year to the governor, the
standing
committees clerk of the house of representatives, and
the
secretary
of the senate. that
primarily address issues pertaining
to
the protection of natural resources and the environment, and the
appropriations
committees in the house of representatives and the
senate.
The list shall be submitted to the legislative committees
not
later than February 15 of each year. This The list shall also
be submitted before any request for supplemental appropriation of
bond funds in a fiscal year. For each eligible project, the list
shall include the nature of the eligible project; the county in
which the eligible project is located; an estimate of the total
cost of the eligible project; and other information considered
pertinent by the administering state department. A project that is
funded by a grant or loan with money from the fund does not need to
be included on the list submitted under this subsection. However,
money in the fund that is appropriated for grants and loans shall
not be encumbered or expended until the administering state
department has reported in an electronic format those projects that
have
been approved for a grant or a loan to the standing committees
governor, the clerk of the house of representatives, and the
secretary
of the senate. that
primarily address issues pertaining
to
the protection of natural resources and the environment and to
the
appropriations subcommittees in the house of representatives
and
the senate on natural resources and environmental quality.
Before
submitting the first cycle of recommended projects under
subsection
(1)(a), the department shall publish and disseminate the
criteria
it will use in evaluating and recommending these projects
for
funding.
(10) (8)
The legislature shall appropriate
prospective or
actual bond proceeds for projects proposed to be funded.
Appropriations shall be carried over to succeeding fiscal years
until the project for which the funds are appropriated is
completed.
(11) (9)
Not later than December March 31
of each year, the
department, the department of agriculture, the department of
natural resources, and the department of community health shall
each submit in an electronic format a list of the projects financed
under this part by that department in the prior year to the
governor,
the standing committees clerk
of the house of
representatives, and
the secretary of the senate. that primarily
address
issues pertaining to the protection of natural resources
and
the environment, and the subcommittees of the house of
representatives
and the senate on appropriations on natural
resources
and environmental quality. Each
list shall include the
name ,
address, and telephone number of
the recipient or
participant, if appropriate; the name and location of the project;
the nature of the project; the amount of money allocated to the
project; the county in which the project is located; a brief
summary of what has been accomplished by the project; and other
information considered pertinent by the administering state
department.
(12) As used in this section:
(a) "Department costs" means costs incurred by the department,
the department of agriculture, the department of community health,
or the department of natural resources for administration and
operational support, information technology, and management
oversight.
(b) "Project management costs" means costs, including state
staffing expenditures, directly associated with the review and
implementation of a project, grant, or loan.
Sec. 19608a. (1) The department shall create a clean Michigan
initiative revolving loan program for the purpose of making loans
to local units of government and brownfield redevelopment
authorities created under the brownfield redevelopment financing
act,
1996 PA 381, MCL 125.2651 to 125.2672, for response baseline
environmental assessments, due care activities, and remedial
activities at known or suspected facilities with redevelopment
potential.
(2) The department shall accept, and consider for approval,
applications for loans throughout the year. The department shall
develop written instructions for prospective applicants, including
the criteria that will be used in application review and approval.
(3) Final application decisions shall be made by the
department within 90 days of submittal of a complete loan
application.
(4) A complete application shall include all of the following:
(a) A description of the proposed eligible activities.
(b) An itemized budget for the proposed eligible activities.
(c) A schedule for the completion of the proposed eligible
activities.
(d) The location of the property.
(e) The current ownership and ownership history of the
property.
(f) The current use of the property.
(g) A detailed history of the use of the property.
(h) The existing and proposed future zoning of the property.
(i) If the property is not owned by the applicant, a draft of
an enforceable agreement between the property owner and the
applicant that commits the property owner to cooperate with the
applicant, including a commitment to allow access to the property
to complete, at a minimum, the proposed eligible activities.
(j) A description of the property's economic redevelopment
potential.
(k) A resolution from the governing body of the applicant
committing to repayment of the loan according to the terms of this
section.
(l) Other information as specified by the department in its
written instructions.
(5) To receive loan funds, approved applicants must enter into
a loan agreement with the department. At a minimum, the loan
agreement shall contain all of the following:
(a) The approved eligible activities to be undertaken with
loan funds.
(b) An implementation schedule for the approved eligible
activities.
(c) Reporting requirements, including, at a minimum, the
following:
(i) The loan recipient shall submit a progress status report to
the department every 6 months during the implementation schedule.
(ii) The loan recipient shall provide a final report within 3
months of completion of the loan-funded activities that includes
documentation of project costs and expenditures, including invoices
and proof of payment.
(d) If the property is not owned by the loan recipient, an
executed agreement that has been approved by the department that
meets the requirements of subsection (4)(i).
(e) Other provisions as considered appropriate by the
department.
(6) As used in this section:
(a) "Baseline environmental assessment" and "response
activity" mean those terms as they are defined in section 20101.
(b) "Due care activities" means those activities conducted
under section 20107a.
(c) "Eligible activities" means baseline environmental
assessment activities, due care activities, and any additional
response activity. Eligible activities include only those
activities necessary to facilitate redevelopment. All eligible
activities must be consistent with a work plan or remedial action
plan pursuant to section 15 of the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2665. Unless otherwise approved
by the director, only activities carried out and costs incurred
after execution of a loan agreement are eligible.
Sec. 19613. (1) Of the funds to be used to provide grants and
loans under section 19608(1)(a)(iv), all of the following conditions
apply:
(a) A recipient of a grant shall receive not more than 1 grant
per year not to exceed $1,000,000.00 per grant.
(b) A recipient of a loan shall receive a maximum of 1 loan
per year not to exceed $1,000,000.00 per loan.
(c) A grant shall be awarded only if the department determines
that both of the following apply:
(i) The property is a facility as defined in section 20101.
(ii) The proposed development of the property will result in
measurable economic benefit in excess of the grant amount requested
by the applicant.
(d) A loan shall be awarded only if the department determines
that both of the following apply:
(i) The property is a facility as defined in section 20101 or
is suspected of being a facility.
(ii) The property has economic development potential based on
the applicant's planned use of the property.
(2) Of the funds to be used to provide grants and loans under
section 19607(2)(b), all of the following conditions apply:
(a) Grants shall not be made to a local unit of government or
a brownfield redevelopment authority operating in the jurisdiction
of a local unit of a government that is liable under part 201 for a
release at the site proposed for grant funding.
(b) Grant funds shall not be utilized for activities that
would relieve a person who has been identified by the department as
a person who is liable under part 201 at the time of application.
(c) A project shall receive not more than a $1,000,000.00
grant and a $1,000,000.00 loan award per year.
(d) Grant funds may be used for site assessment required to
determine if a property is a facility and to characterize the
contamination to determine the suitability of the property for
redevelopment.
(e) A grant for any activities other than activities under
section 19607(2)(b) shall be awarded only if the department
determines that both of the following apply:
(i) The property is a facility.
(ii) The proposed development of the property will result in
measurable economic benefit in excess of the grant amount awarded.
(f) A loan shall be awarded only if the department determines
that both of the following apply:
(i) The property is a facility as defined in section 20101 or
is suspected of being a facility.
(ii) The property has economic potential based on the
applicant's planned use of the property.
Sec. 19614. The department and the department of the attorney
general
may recover costs expended pursuant to under section
19608(1)(a)(i) to (iv) for corrective actions, response activities,
site assessments, and all other recoverable costs under part 201
from persons who are liable under part 201. Actions to recover
costs shall be undertaken in the manner provided in part 201.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. ___ or House Bill No. 6227(request no.
07400'08 *) of the 94th Legislature is enacted into law and the
question provided for in that bill is submitted to and approved by
a majority of the registered electors voting on the question at the
November 4, 2008 general election, as provided under section 15 of
article IX of the state constitution of 1963.