NATURAL RESOURCES & ENVIRONMENTAL PROTECTION

HB 4446, H-1

Summary:  FY 2009-10 House Passed

FY 2009-10

FY 2009-10

FY 2009-10

FY 2009-10

Difference:  House

From FY 2008-09 YTD

FY 2008-09 YTD

Executive

House

Senate

Enacted

Amount

%

IDG/IDT

$22,692,400

$11,235,800

$11,235,800

($11,456,600)

(50.5)

Federal

433,338,200

184,363,000

184,995,000

(248,343,200)

(57.3)

Local

0

0

0

0

0

Private

5,300,700

6,040,000

5,927,400

626,700

11.8

Restricted

394,368,800

388,592,000

386,115,500

(8,253,300)

(2.1)

GF/GP

48,471,600

50,345,500

38,304,700

(10,166,900)

(21.0)

Gross

$904,171,700

$640,576,300

$626,578,400

($277,593,300)

(30.7)

FTEs

3,700.6

3,751.6

3,578.4

(122.2)

(3.3)

ENVIRONMENTAL QUALITY

HB4446, H-1

Summary:  FY 2009-10 House Passed

FY 2009-10

FY 2009-10

FY 2009-10

FY 2009-10

Difference:  House

From FY 2008-09 YTD

FY 2008-09 YTD

Executive

House

Senate

Enacted

Amount

%

IDG/IDT

$18,890,200

$7,433,600

$7,433,600

$

$

($11,456,600)

(60.6)

Federal

379,536,100

129,599,300

130,231,300

(249,304,800)

(65.7)

Local

0

0

0

0

0

Private

555,700

658,900

658,900

103,200

18.6

Restricted

172,081,600

170,732,300

171,537,500

(544,100)

(0.3)

GF/GP

38,579,700

33,127,900

28,753,400

(9,826,300)

(25.5)

Gross

$609,643,300

$341,552,000

$338,614,700

$

$

($271,028,600)

(44.5)

FTEs

1,526.7

1,483.7

1,463.5

(78.7)

(5.2)

1.      Wetlands Regulatory Program: Turn back to the Federal Govt.

Terminates program at the end of FY 2008-09 (upon passage of implementing legislation).  Responsibility would be assumed by the U.S. Corps of Engineers.

Field Permitting                                                                                $2.5 million

Great Lakes Shorelands.............................................................. $0.7 million

Water Management   $0.7 million

Information Technology................................................................ $0.1 million

The House added a $100 line item as a place-holder, pending further action on this proposal.

FTE

Gross

Restricted

GF/GP

30.0

$4,000,000

1,900,000

$2,100,000

(30.0)

($4,000,000)

(1,900,000)

($2,100,000)

2.      Consolidation with Department of Natural Resources

The Environmental Quality Subcommittee and the Natural Resources Subcommittee recommend that the two departments be merged and any realized General Fund savings realized through realignment and field office consolidation be lapsed at year end.  This recommendation is contingent upon issuance and legislative acceptance of a facilitating executive order.  The subcommittee recommendation is included in HB 4446.

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$609,643,300

18,890,200

379,536,100

555,700

172,081,600

$38,579,700

$0

0

0

0

0

$0

3.      Baseline and Full year  FY 2008-09 Executive Order Reductions

General Fund supported programs reduced in FY 2008-09 are reduced.  An additional $403,700 is related to EO 2009-22, and $2,046,300 is reduced from General Fund supported programs.  Funding shifts offsetting General Fund expenditures in the Remediation and Redevelopment, Water, and Waste and Hazardous Materials programs are also included: $1,453,300.

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$609,643,300

18,890,200

379,536,100

555,700

172,081,600

$38,579,700

($2,046,300)

0

632,000

0

821,300

($3,499,600)

4.      Fee Offset Reductions

General Fund appropriations which have replaced restricted fee revenue (included in lieu of license and fee increases recommended but not implemented in FY 2007-08: Flood Plain, Hazardous Waste, Radiological Protection and Surface Water Quality)  is reduced.

FTE

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

1,526.7

$609,643,300

18,890,200

379,536,100

555,700

172,081,600

$38,579,700

(7.5)

($874,900)

0

0

0

0

($874,900)

5.      Contaminated Site Cleanup Program

Revenue collected from a 2008 settlement is appropriated from the Environmental Response Fund for site clean up and remediation.  Funding from the Cleanup Redevelopment Fund is reduced: $6,000,000.

Gross

Private

Restricted

GF/GP

$22,973,700

155,700

20,788,500

$2,029,500

$0

0

0

$0

6.      Environmental Protection Fund Funding Shifts

GF/GP reduced and replaced by appropriations from the Environmental Protection Fund.

Appropriations are made in boiler plate, shifting $1,000,000 from the Cleanup and Redevelopment Trust Fund, and $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.

Gross

Private

Restricted

GF/GP

$22,973,700

155,700

20,788,500

$2,029,500

$0

0

2,000,000

($2,000,000)

7.      Waste and Hazardous Materials Funding Shifts

GF/GP support for the Above Ground Storage Tank, and Underground Storage Tank Programs reduced and replaced with Refined Petroleum Fund (1,400,000). The Solid Waste Management Fund Staff Account (500,300) was reduced and replaced with funding from the perpetual care fund.

Gross

Federal

Restricted

GF/GP

$18,768,900

4,027,500

10,588,900

$4,152,500

$0

0

1,900,300

($1,900,300)

8.      Drinking Water Revolving Fund Match

Reduces funding for Drinking Water Revolving Fund.

Gross

Federal

Restricted

GF/GP

$85,139,200

71,543,000

11,400,000

2,196,200

($2,062,500)

0

0

($2,062,500)

9.      Air Quality: Asbestos and Technical Assistance/Outreach

Technical Assistance program for asbestos remediation eliminated.  Current year Federal support for the technical assistance program, $100,000, is related to the General Fund reduction and is reduced. Federal fund support is provided to fund an ongoing, but reduced, outreach program: $250,000. 

Gross

Federal

Restricted

GF/GP

$25,962,000

6,201,100

12,334,200

$7,426,700

($748,000)

150,000

0

($898,000)

10.    Pollution Prevention Workshops

Compliance Assistance Workshop programs eliminated.

FTE

Gross

Federal

Restricted

GF/GP

48.0

$4,992,600

507,400

3,575,000

$910,200

(5.0)

($897,100)

0

0

($897,100)

11.    On-site Wastewater Program

Program eliminated.

Gross

Federal

Restricted

GF/GP

$16,176,600

11,788,500

1,386,300

$3,001,800

($600,000)

0

0

($600,000)

12.    Oil and Gas Regulatory Fund Funding Shifts

Inspection fee revenue for various programs in the Office of Geological Survey replaced by Oil and Gas permit fee revenue, reflecting reassignment of program staff to permit inspections and regulatory support ($780,000).

Gross

Restricted

$780,000

$780,000

$0

$0

13.    Aquifer Protection Program

Programeliminated: revenue insufficient to support program.

Gross

Restricted

$400,000

400,000

($400,000)

(400,000)

14.    Retired Engineers Technical Assistance Program: DELEG

Program transferred to the Department of Energy, Labor and Economic Growth.

Gross

Restricted

$1,474,300

$1,474,300

($1,474,300)

($1,474,300)

15.    SoutheastMichigan Diesel Emissions Reduction Grant

Grant funding forWayne County diesel emissions reduction projects, including busses operated by the Detroit Public Schools.  Matching funds provided by Marathon Oil Company.

Gross

Federal

Private

NA

$500,000

200,000

$300,000

16.    Radiological Protection

Program funding reduced.

Gross

IDG/IDT

Federal

GF/GP

$1,407,100

742,900

274,500

$389,700

($200,000)

0

0

($200,000)

17.    Air Quality Fees: Renewable Operating Permit Program

Restricted fee increase would continue the current year GF/GP offset related to Executive Order 2008-21

Gross

Restricted

NA

$130,000

$130,000

18.    Economic Adjustments

Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.

Gross

Federal

Private

Restricted

GF/GP

N/A

N/A

N/A

N/A

N/A

$2,852,500

607,000

3,200

1,613,900

$628,400

Sec. 223.  Rule Promulgation– DELETED

Requires a report on any policy changes made to implement a public act; DEQ is not allowed to adopt a rule that will apply to a small business if it has a disproportionate economic impact.

Sec. 226.  Out-of-State State Employee Training– DELETED

Stipulates that only one state employee may participate in training seminars or professional development conference, unless paid by non-state funds or multiple issues outside of a participants area of expertise are addressed.

Sec. 227.  Obsolete Database Systems– DELETED

Requires a plan and cost estimate to replace obsolete or failing computer or database systems.

Sec. 228.  Expenditure Reports: FY 2008-09– DELETED

Requires a report of DEQ expenditures in a publicly accessible internet site including the purpose for which the expenditures were made, if funding is available.

Sec. 229.  Freedom of Information Requests– DELETED

Requires semiannual reports on freedom of information requests presented to DEQ.

Sec. 230.  MuskratLake Water Levels– DELETED

Requires the issuance of permits to construct a lake level control structure onMuskrat Lake in Clinton County.

Sec. 228. DNR/DEQ Department Consolidation– NEW

Legislative intent to re-combine the Department of Environmental Quality and the Department of Natural Resources.   A review of regulatory functions and programs and duties would be undertaken, and legislation would be proposed to create a stakeholder process for environmental programs, similar to the appeal procedure adopted by the Natural Resource Commission,DNR.

Sec. 229. Consolidation Executive Order– NEW

Appropriations in this act assume the issuance and acceptance of an executive order facilitating the consolidation of responsibilities and functions of the departments of Environmental Quality and Natural Resources.

Sec. 230.  Monthly Review of Environmental Quality Program Expenditures– NEW

Requires monthly report of spending requirements to the Speaker of the House of Representatives, commencing onNovember 1, 2009.

Sec. 231.  Permits Considered Administratively Complete– NEW

Any permit application pending for more than 2 years is considered administratively complete.

Sec. 232.  Fiscal Year Expenditure Reports– NEW

Requires report of fiscal year spending, posted on the internet, including the purpose of reported expenditures.

Sec. 301.  Wetlands Protection Program Supplemental– NEW

Gives legislative intent to address funding needs for the wetlands regulatory program if amendatory legislation eliminating the program is not passed byOctober 1, 2009.

Sec. 304.  Restricted Fund Transfer: Cleanup and Redevelopment Trust Fund – NEW

Transfers $1,000,000 from the Cleanup and Redevelopment Trust Fund to the Environmental Protection Fund.

Sec. 305. Restricted Fund Transfer: Community Pollution Prevention Fund – NEW

Transfers $1,000,000 from the Community Pollution Prevention Fund to the Environmental Protection Fund.

Sec. 401. Restricted Fund Transfer: Solid Waste Management Fund – NEW

Transfers $500,000 from the Solid Waste Management Fund to the Solid Waste Management Fund Staff Account.

Sec. 402.  Bond Fund Report– DELETED

Requires report of amount/disposition of bond funds and descriptions of activities supported from bond revenue.

Sec. 501.  WMU Geologic Core Research Laboratory– DELETED

States legislative intent that the Office of Geological Survey work withWestern Michigan University to maintain theMichigan basin core research laboratory and to collaborate on other cooperative projects.

Sec. 702.  Peer-Reviewed Site Cleanup Criteria– DELETED

Directs DEQ to include cleanup criteria in remedial action plans derived from peer-reviewed risk assessments.

Sec. 703.  Refined Petroleum Cleanup Site List– DELETED

Lists cleanup projects funded through the refined petroleum cleanup program.

Sec. 704.  Refined Petroleum Fund– DELETED

States legislative intent to restore $70.0 million Refined Petroleum Fund transferred to General Fund in FY 2006-07.

Sec. 705.  Administrative Rules Advisory Workgroup– DELETED

Establishes a work group on use of administrative rules and operational memoranda in the leaking underground storage tank program.

Sec. 706. Operational Memoranda – DELETED

Bans the use of operational memoranda for selected programs.

Sec. 801.  Construction Permit Site Review Board– DELETED

States legislative intent that approval by the Site Review Board represents the final approval for construction permit applications referred by DEQ.

Sec. 501 Groundwater Dispute Resolution Supplemental– NEW

Gives legislative intent to address funding needs for the ground water dispute resolution program if amendatory legislation eliminating the program is not passed byOctober 1, 2009.

Sec. 901 (current year)  Water Quality Enforcement Report– DELETED

Requires report on enforcement and program activities funded from National Pollution Discharge Elimination System Fund.

Sec. 902.  Contaminated Lake and River Sediments Cleanup Funding– DELETED

Re-appropriates Clean Michigan Initiative funding for theContaminatedLake and River Sediments Cleanup program.

Sec. 903. Michigan Agriculture Environmental Assurance Program –DELETED

States legislative intent that DEQ and Department of Agriculture should proportionally reduce their programs if federal funding is less than that received in FY 2007-08.

Sec. 1102.  Scrap Tire Fire Suppression Costs– DELETED

Provides $100,000 for grants to communities for scrap tire suppression costs, provided that owner liability bonds and other available funding sources have been exhausted.

Sec. 1103.  Real-Time Water Quality Monitoring– DELETED

Provides grant toMacomb County and St. Clair County to support real-time water quality monitoring programs in the St. Clair watershed.

NATURAL RESOURCES

HB 4446, H-1

Summary:  FY 2009-10 House Passed

1.      Consolidation with Department of Environmental Quality

The Natural Resources Subcommittee and the Environmental Quality Subcommittee recommend that the two departments be merged.  Administrative savings of $288,400 is assumed. Any additional General Fund savings realized through realignment and field office consolidation is to be lapsed at year end.  This recommendation is contingent upon issuance and legislative acceptance of a facilitating executive order.

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$294,528,400

3,802,200

53,802,100

4,745,000

222,287,200

$9,891,900

($288,400)

0

0

0

0

($288,400)

2.      Historic and Museum Programs: Transferred from DHAL

Executive recommends several programs are transferred from the Department of History, Arts and Libraries:

Mackinac Island State Park.......................................................... $3.4 million

State Museum  $3.2 million

Museum Stores.............................................................................. $0.5 million

Heritage Publications.................................................................... $1.0 million

Freedom Trail   $0.2 million

Lighthouse Programs................................................................... $0.2 million

Thunder Bay Underwater Preserve............................................ $0.2 million

Mann House     $0.1 million

State Rent (BOC)............................................................................ $0.9 million

Information Technology................................................................ $0.4 million

Not included in the Subcommittee Recommendation

FTE

Gross

Private

Restricted

GF/GP

NA

0.0

$0

0

0

$0

3.      Game and Fish Protection Fund Supported Programs: Reduced

Several programs reduced to reflect expected revenue shortfalls in the Game and Fish Protection Fund-General Purpose:

Administrative Units (Various)......................................................... $955,000

Land and Facilities............................................................................ $400,000

Wildlife Management..................................................................... $1,700,000

Fish Production                                                                                   $700,000

Fisheries Resource Management.............................................. $2,200,000

Forestry: Coop. Resource Programs............................................. $220,700

Forest Management Initiatives........................................................... $38,500

Law Enforcement............................................................................ $2,550,000

Inland Fisheries Grants.................................................................... $200,000

Gross

Restricted

$64,513,700

$64,513,700

($8,964,200)

($8,964,200)

4.      Baseline and Full year  FY 2008-09 Executive Order Reductions

General Fund supported programs reduced in FY 2008-09 are reduced.  Reductions reflect the continuation of General Fund reductions included in EO 2009-22 and a reduction of $120,000 in the Bovine TB containment program.

Gross

IDG/IDT

Federal

Private

Restricted

GF/GP

$294,528,400

3,802,200

53,802,100

4,745,000

222,287,200

$9,891,100

($758,100)

0

0

0

0

($758,100)

5.      National Recreational Trails Grants

TheMichigan share for this grant program for trail development and maintenance is increased.  Funds are awarded through a competitive application process.

Gross

Private

Federal

$2,150,000

50,000

2,100,000

$1,800,000

0

1,800,000

6.      State Parks Funding: Park Endowment Fund Increase

Funding from the State Parks Endowment Fund is increased to make up for deficient revenues from motor vehicle permits and other user fees.

Gross

Federal

Private

Restricted

$44,654,200

120,300

363,900

$44,170,000

$1,000,000

0

0

$1,000,000

7.     State Forest Management

Revenueincreases, generated during FY 2007-08 through timber harvest activities, are added to the forest management program.

Gross

Federal

Private

Restricted

$15,423,900

922,600

822,800

$13,678,500

$750,000

0

0

$750,000

8.      Snowmobile Trail Easements

Funding, realized through the recently approved fee increase, will be used to purchase or lease easements to lengthen or create snowmobile trails.

Gross

Restricted

$0

$0

$700,000

$700,000

9.      Capital Outlay

Proposed funding for FY2009-10 would support state park, forestry, and waterways construction and infrastructure maintenance projects.  State Park Endowment Fund support replaces Park Improvement revenue ($2,000,000).

Gross

Federal

Private

Restricted

$14,193,000

1,293,000

1,500,000

$11,400,000

$850,400

685,400

500,000

($335,000)

10.    Economic Adjustments

Provides an adjustment to cover the cost of the 1% salary increase to be provided in FY 2009-10.

Gross

Federal

Private

Restricted

GF/GP

NA

$4,150,100

528,800

23,500

3,393,100

$204,700

Sec. 205.  State Hiring Freeze – DELETED

Imposes a state-wide hiring freeze in all departments, and provides process for approvals of position vacancies.

Sec. 207.  Restricted Fund Revenue, Expenditures, and Fund Balances – REVISED

Requires report of revenue, spending, and estimated year-end balance for each restricted fund appropriated.  House added requirement to recalculate the number of fundedFTE positions onOctober 15, 2009.

Sec. 222. FTE Monthly Report – NEW

Requires a bi-monthly report of the number of departmentFTE positions by classification.

Sec. 223.  Detailed Allotment Information – NEW

Requires report with detailed allotment detail by item of expense for each line item

Sec. 223 (Current Law)  DNR Funding Workgroup – DELETED

States legislative intent to implement recommendations of the work group on department long term funding.

Sec. 226 (Current Law)  MuskratLakeWater Control – DELETED

Requires report on the status of permit applications and efforts to maintain water levels ofMuskrat Lake in Clinton County.

Sec. 228. DNR/DEQ Department Consolidation– NEW

Legislative intent to re-combine the Department of Environmental Quality and the Department of Natural Resources.   A review of regulatory functions and programs and duties would be undertaken, and legislation would be proposed to create a stakeholder process for environmental programs, similar to the appeal procedure adopted by the Natural Resource Commission,DNR.

Sec. 229. Consolidation Executive Order– NEW

Appropriations in this act assume the issuance and acceptance of an executive order facilitating the consolidation of responsibilities and functions of the departments of Environmental Quality and Natural Resources.

Sec. 232.  Fiscal Year Expenditure Reports– NEW

Requires report of fiscal year spending, posted on the internet, including the purpose of reported expenditures

Sec. 706.  Payments in Lieu of Taxes: Report to Department of Treasury –REVISED

DirectsDNR to provide billing information related to payments in lieu of taxes to Michigan Department of Treasury within 10 days of receipt.

Sec. 802.  Bovine TB Eradication Efforts –REVISED

Requires semi-annual reports on enforcement actions taken to eradicate bovine TB, relevant scientific studies and the number of deer found to be infected.

Sec. 603.  (Current Law)  Fish Hatchery Operations – DELETED

Requires thatDNR operate six fish hatcheries.

Sec. 1002.  State Park Campground Closures – REVISED

Requires notice ifDNR intends to reduce operations or reduce recreation opportunities at any state park or recreation area.

Sec. 703 (Current Law).  Defibrillators in State Parks – DELETED

DirectsDNR to maintain defibrillators placed in state parks.

Sec. 1203.  Timber Marking –REVISED

DirectsDNR, subject to forest certification process, to mark for harvest, 58,000 acres at an average rate of 12.5 to 15.0 cords per acre; be responsive to changes in regional markets for timber products; impact of timber harvest on wildlife habitat and recreation uses to be considered; requires quarterly report.

Sec. 1207.  TimberSale Bidding Process – NEW

Suggests that the department should address and resolve timber sale bidding problems beforeMarch 31, 2010.

Sec. 902. Island LakeShootingRange Concession Contract – DELETED

Requires public notice of the expiration date or adoption of amendments to the concession contract to operate theIslandLakeShootingRange.