SENATE BILL No. 157

 

 

February 1, 2007, Introduced by Senators McMANUS, PAPPAGEORGE, CROPSEY, KAHN and KUIPERS and referred to the Committee on Natural Resources and Environmental Affairs.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

(MCL 324.101 to 324.90106) by adding part 27.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

             PART 27 ENVIRONMENTAL COMPLIANCE ASSISTANCE

 

     Sec. 2701. As used in this part:

 

     (a) "Advisory panel" means the small business environmental

 

compliance advisory panel created in section 2707.

 

     (b) "Department" means the department of environmental

 

quality.

 

     (c) "Environmental requirement" means a requirement of a part

 

of this act administered by the department or a rule promulgated or

 

order or permit issued thereunder.


 

     (d) "Small business" means a business that meets all of the

 

following requirements:

 

     (i) Is independently owned and operated.

 

     (ii) Is not dominant in its field of operation as described in

 

13 CFR 121.102.

 

     (iii) Meets the small business size standards set forth in 13

 

CFR 121.201.

 

     (e) "Small business environmental compliance assistance

 

program" or "assistance program" means a program of the department

 

implementing this part.

 

     (f) "Violation" means a violation of an environmental

 

requirement.

 

     Sec. 2703. (1) The department shall assist small businesses in

 

determining both of the following:

 

     (a) Applicable environmental requirements.

 

     (b) The procedures for obtaining permits in an efficient and

 

timely manner.

 

     (2) The department shall publish 1 or more guides to assist

 

small businesses in complying with environmental requirements. The

 

department shall designate the publications as small business

 

compliance guides. The department shall cooperate with associations

 

of small businesses to develop and distribute the guides. Each

 

guide shall do all of the following:

 

     (a) Cover a group or class of similarly affected small

 

businesses. By April 30, 2008, the department shall develop a plan

 

to develop and a schedule to complete small business compliance

 

guides. A guide shall be completed for the fruit and vegetable


 

processing sector by September 30, 2008.

 

     (b) Explain the actions a small business in that group or

 

class is required to take to comply with environmental

 

requirements.

 

     (c) Use plain language likely to be understood by affected

 

small businesses.

 

     (3) Beginning in 2008, the department shall publish at least 2

 

guides annually until all the guides necessary to satisfy the

 

requirements of subsection (2) are published. The department shall

 

reevaluate a guide every 5 years after publication and revise the

 

guide if necessary. Not less than 30 days before publishing a guide

 

or revised guide, the department shall submit a copy of the

 

proposed guide to the advisory panel for review and comment.

 

     (4) In any civil or administrative action against a small

 

business for a violation occurring after the effective date of this

 

section, the content of a relevant small business compliance guide

 

may be considered as evidence of the reasonableness or

 

appropriateness of any proposed sanctions.

 

     Sec. 2705. (1) Subject to subsection (3), the department shall

 

waive civil fines and other civil sanctions assessed against a

 

small business for a violation if the small business meets all of

 

the following requirements:

 

     (a) The small business discloses the violation to the

 

department within 21 days after the small business discovers the

 

violation. The small business may request an extension of this

 

deadline from the director.

 

     (b) The disclosure is voluntary. Voluntary disclosure does not


 

include either of the following:

 

     (i) Disclosure of a monitoring or sampling result if the

 

disclosure is required by a law, permit, judicial or administrative

 

order, or consent agreement.

 

     (ii) Disclosure of a violation discovered through an

 

information request or inspection or reported by a member of the

 

public.

 

     (c) The small business corrects the violation promptly and

 

within 180 days after disclosure or, if the correction includes

 

pollution prevention changes, within 360 days after disclosure. If

 

the violation is failure to obtain a permit, the violation is

 

considered to be corrected when the small business submits an

 

administratively complete permit application.

 

     (2) Subject to subsection (3), if the requirements of

 

subsection (1)(a) to (c) are met, but the violation resulted in a

 

substantial economic benefit giving the small business a clear

 

advantage over its business competitors, the department shall waive

 

civil fines and other civil sanctions assessed against the small

 

business to the extent that the amount of the fines and the likely

 

costs to the small business of the other civil sanctions exceed the

 

amount of the economic benefit.

 

     (3) Subsections (1) and (2) do not apply if any of the

 

following apply:

 

     (a) The violation caused actual serious harm to public health,

 

safety, or the environment.

 

     (b) The violation may present an imminent and substantial

 

endangerment to public health, safety, or the environment.


 

     (c) The facility has received a warning letter or notice of

 

violation, or has been subject to a citizen suit, for a violation

 

of the same environmental requirement within the past 3 years.

 

     (d) The facility has been the subject of 2 or more enforcement

 

actions, for violations in the past 5 years.

 

     Sec. 2707. (1) The small business environmental compliance

 

advisory panel is created within the department.

 

     (2) The advisory panel shall be broadly representative of

 

regulated small businesses. The advisory panel shall consist of all

 

of the following:

 

     (a) The members of the small business clean air compliance

 

advisory panel created in section 5708.

 

     (b) Four additional members appointed by the governor.

 

     (3) A member of the advisory panel appointed under subsection

 

(2)(b) shall serve for a term of 4 years, or until a successor is

 

appointed, whichever is later. However, of the members first

 

appointed under subsection (2)(b), 1 member shall serve for a term

 

of 3 years, 1 member for a term of 2 years, and 1 member for a term

 

of 1 year.

 

     (4) If a vacancy occurs on the advisory panel among the

 

members appointed under subsection (2)(b), the governor shall make

 

an appointment for the unexpired term.

 

     (5) The first meeting of the advisory panel shall be called by

 

the chairperson of the small business clean air compliance advisory

 

panel within 90 days of the appointment of all advisory panel

 

members under subsection (2)(b). At the first meeting, the advisory

 

panel shall elect from among its members a chairperson and other


 

officers as it considers necessary or appropriate.

 

     (6) A majority of the members of the advisory panel

 

constitutes a quorum for the transaction of business at a meeting

 

of the advisory panel. A majority of the members present and

 

serving are required for official action of the advisory panel.

 

     (7) Members of the advisory panel shall serve without

 

compensation. However, members of the advisory panel may be

 

reimbursed for their actual and necessary expenses incurred in the

 

performance of their official duties as members of the advisory

 

panel.

 

     Sec. 2709. The advisory panel shall do all of the following:

 

     (a) Consult with the small business clean air ombudsman

 

appointed under section 5703 and the head of the small business

 

environmental compliance assistance program to plan the work of the

 

panel, including the frequency of meetings, agenda items, and

 

reports to be issued by the panel.

 

     (b) Prepare advisory reports concerning all of the following:

 

     (i) The difficulties encountered by small business in the

 

enforcement of environmental requirements and the degree and

 

severity of that enforcement.

 

     (ii) The average costs of different sectors of small businesses

 

in complying with environmental requirements of this state.

 

     (iii) The effectiveness of the assistance program.

 

     (iv) The costs of operating the assistance program.

 

     (c) Review information prepared by the assistance program for

 

small businesses to ensure that the information is in plain

 

language likely to be understood by affected small businesses.


 

     (d) Utilize the assistance program staff to act as staff to

 

develop and disseminate the work product of the advisory panel.

 

     (e) Provide to the governor, the clerk of the house of

 

representatives, the secretary of the senate, and the department of

 

labor and economic growth copies of advisory reports prepared by

 

the advisory panel. In addition, the reports shall be made

 

available to any other person upon request and shall be published

 

on the department's website.

 

     Sec. 2711. (1) Any record or other information prepared,

 

owned, used, in the possession of, or retained by the assistance

 

program that concerns assistance program inquiries, disclosures, or

 

activities and that identifies or describes an individual facility

 

or operation is confidential and exempt from disclosure under the

 

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,

 

unless the record or other information is relevant to an existing

 

clear and immediate danger to the public health or environment.

 

     (2) By July 1 of each year, beginning in 2008, the department

 

shall report to the governor, the clerk of the house of

 

representatives, the secretary of the senate, and the chairpersons

 

of the senate and house of representatives standing committees on

 

appropriations. The report shall contain, but not be limited to,

 

all of the following for the immediately preceding calendar year:

 

     (a) The number and types of inquiries the assistance program

 

received.

 

     (b) The services provided by the assistance program.

 

     (c) The number of small businesses that voluntarily disclosed

 

violations.


 

     Sec. 2712. This part does not affect the rights, privileges,

 

and immunities provided by part 148.