SENATE BILL No. 1501

 

 

September 21, 2010, Introduced by Senator SWITALSKI and referred to the Committee on Education.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 20101 (MCL 324.20101), as amended by 1996 PA

 

383, and by adding sections 20121 and 20122.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20101. (1) As used in this part:

 

     (a) "Act of God" means an unanticipated grave natural disaster

 

or other natural phenomenon of an exceptional, inevitable, and

 

irresistible character, the effects of which could not have been

 

prevented or avoided by the exercise of due care or foresight.

 

     (b) "Agricultural property" means real property used for

 

farming in any of its branches, including cultivating of soil;

 

growing and harvesting of any agricultural, horticultural, or

 

floricultural commodity; dairying; raising of livestock, bees,

 


fish, fur-bearing animals, or poultry; turf and tree farming; and

 

performing any practices on a farm as an incident to, or in

 

conjunction with, these farming operations. Agricultural property

 

does not include property used for commercial storage, processing,

 

distribution, marketing, or shipping operations.

 

     (c) "Attorney general" means the department of the attorney

 

general.

 

     (d) "Baseline environmental assessment" means an evaluation of

 

environmental conditions which exist at a facility at the time of

 

purchase, occupancy, or foreclosure that reasonably defines the

 

existing conditions and circumstance at the facility so that, in

 

the event of a subsequent release, there is a means of

 

distinguishing the new release from existing contamination.

 

     (e) "Board" means the brownfield redevelopment board created

 

in section 20104a.

 

     (f) "Department" means the director of the department of

 

environmental quality natural resources and environment or his or

 

her designee to whom the director delegates a power or duty by

 

written instrument.

 

     (g) "Director" means the director of the department of

 

environmental quality natural resources and environment.

 

     (h) "Directors" means the directors or their designees of the

 

departments of environmental quality natural resources and

 

environment, community health, agriculture, and state police.

 

     (i) "Disposal" means the discharge, deposit, injection,

 

dumping, spilling, leaking, or placing of any hazardous substance

 

into or on any land or water so that the hazardous substance or any

 


constituent of the hazardous substance may enter the environment or

 

be emitted into the air or discharged into any groundwater or

 

surface water or otherwise enter the environment.

 

     (j) "Enforcement costs" means court expenses, reasonable

 

attorney fees of the attorney general, and other reasonable

 

expenses of an executive department that are incurred in relation

 

to enforcement under this part or rules promulgated under this

 

part, or both.

 

     (k) "Environment" or "natural resources" means land, surface

 

water, groundwater, subsurface , strata, air, fish, wildlife, or

 

biota within the state.

 

     (l) "Environmental contamination" means the release of a

 

hazardous substance, or the potential release of a discarded

 

hazardous substance, in a quantity which is or may become injurious

 

to the environment or to the public health, safety, or welfare.

 

     (m) "Evaluation" means those activities including, but not

 

limited to, investigation, studies, sampling, analysis, development

 

of feasibility studies, and administrative efforts that are needed

 

to determine the nature, extent, and impact of a release or threat

 

of release and necessary response activities.

 

     (n) "Exacerbation" means the occurrence of either of the

 

following caused by an activity undertaken by the person who owns

 

or operates the property, with respect to existing contamination:

 

     (i) Contamination that has migrated beyond the boundaries of

 

the property which is the source of the release at levels above

 

cleanup criteria specified in established under section

 

20120a(1)(a) unless a criterion is not relevant because exposure is

 


reliably restricted pursuant to section 20120b.

 

     (ii) A change in facility conditions that increases response

 

activity costs.

 

     (o) "Facility" means any area, place, or property where a

 

hazardous substance in excess of the concentrations which satisfy

 

the requirements of established under section 20120a(1)(a) or (17)

 

or the cleanup criteria for unrestricted residential use under part

 

213 has been released, deposited, disposed of, or otherwise comes

 

to be located. Facility does not include any area, place, or

 

property at which response activities have been completed which

 

satisfy the cleanup criteria for the residential category provided

 

for in established under section 20120a(1)(a) and (17) or at which

 

corrective action has been completed under part 213 which satisfies

 

the cleanup criteria for unrestricted residential use.

 

     (p) "Feasibility study" means a process for developing,

 

evaluating, and selecting appropriate response activities.

 

     (q) "Foreclosure" means possession of a property by a lender

 

on which it has foreclosed on a security interest or the expiration

 

of a lawful redemption period, whichever occurs first.

 

     (r) "Free product" means a hazardous substance in a liquid

 

phase equal to or greater than 1/8 inch of measurable thickness

 

that is not dissolved in water and that has been released into the

 

environment.

 

     (s) "Fund" means the cleanup and redevelopment fund

 

established in section 20108.

 

     (t) "Hazardous substance" means 1 or more of the following,

 

but does not include fruit, vegetable, or field crop residuals or

 


processing by-products, or aquatic plants, that are applied to the

 

land for an agricultural use or for use as an animal feed, if the

 

use is consistent with generally accepted agricultural management

 

practices developed pursuant to the Michigan right to farm act, Act

 

No. 93 of the Public Acts of 1981, being sections 286.471 to

 

286.474 of the Michigan Compiled Laws 1981 PA 93, MCL 286.471 to

 

286.474:

 

     (i) Any substance that the department demonstrates, on a case

 

by case basis, poses an unacceptable risk to the public health,

 

safety, or welfare, or the environment, considering the fate of the

 

material, dose-response, toxicity, or adverse impact on natural

 

resources.

 

     (ii) Hazardous substance as defined in section 101 of title I

 

of the comprehensive environmental response, compensation, and

 

liability act of 1980, Public Law 96-510, 94 Stat. 2767 42 USC

 

9601.

 

     (iii) Hazardous waste as defined in part 111 section 11103.

 

     (iv) Petroleum as described in part 213 section 21303.

 

     (u) "Interim response activity" means the cleanup or removal

 

of a released hazardous substance or the taking of other actions,

 

prior to the implementation of a remedial action, as may be

 

necessary to prevent, minimize, or mitigate injury to the public

 

health, safety, or welfare, or to the environment. Interim response

 

activity also includes, but is not limited to, measures to limit

 

access, replacement of water supplies, and temporary relocation of

 

people as determined to be necessary by the department. In

 

addition, interim response activity means the taking of other

 


actions as may be necessary to prevent, minimize, or mitigate a

 

threatened release.

 

     (v) "Lender" means any of the following:

 

     (i) A state or nationally chartered bank.

 

     (ii) A state or federally chartered savings and loan

 

association or savings bank.

 

     (iii) A state or federally chartered credit union.

 

     (iv) Any other state or federally chartered lending

 

institution. or

 

     (v) A regulated affiliate or regulated subsidiary of any

 

entity listed in this subparagraph or subparagraphs (i) to (iii) (iv).

 

     (vi) (v) An insurance company authorized to do business in this

 

state pursuant to the insurance code of 1956, Act No. 218 of the

 

Public Acts of 1956, being sections 500.100 to 500.8302 of the

 

Michigan Compiled Laws 1956 PA 218, MCL 500.100 to 500.8302.

 

     (vii) (vi) A motor vehicle finance company subject to the motor

 

vehicle sales finance act, Act No. 27 of the Extra Session of 1950,

 

being sections 492.101 to 492.141 of the Michigan Compiled Laws

 

1950 (Ex Sess) PA 27, MCL 492.101 to 492.141, with net assets in

 

excess of $50,000,000.00.

 

     (viii) (vii) A foreign bank.

 

     (ix) (viii) A retirement fund regulated pursuant to state law or

 

a pension fund regulated pursuant to federal law with net assets in

 

excess of $50,000,000.00.

 

     (x) (ix) A state or federal agency authorized by law to hold a

 

security interest in real property or a local unit of government

 

holding a reversionary interest in real property.

 


     (xi) (x) A nonprofit tax exempt organization created to promote

 

economic development in which a majority of the organization's

 

assets are held by a local unit of government.

 

     (xii) (xi) Any other person who loans money for the purchase of

 

or improvement of real property.

 

     (xiii) (xii) Any person who retains or receives a security

 

interest to service a debt or to secure a performance obligation.

 

     (w) "Local health department" means that term as defined in

 

section 1105 of the public health code, Act No. 368 of the Public

 

Acts of 1978, being section 333.1105 of the Michigan Compiled Laws

 

1978 PA 368, MCL 333.1105.

 

     (x) "Local unit of government" means a county, city, township,

 

or village, an agency of a local unit of government, an authority,

 

or any other public body or entity created by or pursuant to state

 

law. Local unit of government does not include the state or federal

 

government or a state or federal agency.

 

     (y) "Operator" means a person who is in control of or

 

responsible for the operation of a facility. Operator does not

 

include either of the following:

 

     (i) A person who holds indicia of ownership primarily to

 

protect the person's security interest in the facility, unless that

 

person participates in the management of the facility as described

 

in section 20101a.

 

     (ii) A person who is acting as a fiduciary in compliance with

 

section 20101b.

 

     (z) "Owner" means a person who owns a facility. Owner does not

 

include either of the following:

 


     (i) A person who holds indicia of ownership primarily to

 

protect the person's security interest in the facility, including,

 

but not limited to, a vendor's interest under a recorded land

 

contract, unless that person participates in the management of the

 

facility as described in section 20101a.

 

     (ii) A person who is acting as a fiduciary in compliance with

 

section 20101b.

 

     (aa) "Permitted release" means 1 or more of the following:

 

     (i) A release in compliance with an applicable, legally

 

enforceable permit issued under state law.

 

     (ii) A lawful and authorized discharge into a permitted waste

 

treatment facility.

 

     (iii) A federally permitted release as defined in section 101 of

 

title I of the comprehensive environmental response, compensation,

 

and liability act of 1980, Public Law 96-510, 94 Stat. 2767 42 USC

 

9601.

 

     (bb) "Release" includes, but is not limited to, any spilling,

 

leaking, pumping, pouring, emitting, emptying, discharging,

 

injecting, escaping, leaching, dumping, or disposing of a hazardous

 

substance into the environment, or the abandonment or discarding of

 

barrels, containers, and other closed receptacles containing a

 

hazardous substance. Release does not include any of the following:

 

     (i) A release that results in exposure to persons solely within

 

a workplace, with respect to a claim that these persons may assert

 

against their employers.

 

     (ii) Emissions from the engine exhaust of a motor vehicle,

 

rolling stock, aircraft, or vessel.

 


     (iii) A release of source material, by-product material, or

 

special nuclear material from a nuclear incident, as those terms

 

are defined in section 1 of the atomic energy act of 1954, chapter

 

1073, 68 Stat. 919 922, 42 USC 2014, if the release is subject to

 

requirements with respect to financial protection established by

 

the nuclear regulatory commission under section 170 of chapter 14

 

of title I of the atomic energy act of 1954, chapter 1073, 71 Stat.

 

576, 42 U.S.C. 2210 the atomic energy damages act, 42 USC 2210, or

 

any release of source material, by-product material, or special

 

nuclear material from any processing site designated under section

 

102(a)(1) of title I or 302(a) of title III of the uranium mill

 

tailings radiation control act of 1978, Public Law 95-604, 42

 

U.S.C. 7912 and 42 USC 7912 or 7942.

 

     (iv) If applied according to label directions and according to

 

generally accepted agricultural and management practices, the

 

application of a fertilizer, soil conditioner, agronomically

 

applied manure, or pesticide, or fruit, vegetable, or field crop

 

residuals or processing by-products, aquatic plants, or a

 

combination of these substances. As used in this subparagraph,

 

"fertilizer", and "soil conditioner", have the meaning given to

 

these terms in part 85, and "pesticide" has the meaning given to

 

that term in part 83 mean those terms as defined in sections 8501,

 

8501a, and 8305, respectively.

 

     (v) A release does not include fruits, vegetables, field crop

 

processing by-products, or aquatic plants, that are applied to the

 

land for an agricultural use or for use as an animal feed, if the

 

use is consistent with generally accepted agricultural and

 


management practices developed pursuant to the Michigan right to

 

farm act, Act No. 93 of the Public Acts of 1981, being sections

 

286.471 to 286.474 of the Michigan Compiled Laws 1981 PA 93, MCL

 

286.471 to 286.474.

 

     (cc) "Remedial action" includes, but is not limited to,

 

cleanup, removal, containment, isolation, destruction, or treatment

 

of a hazardous substance released or threatened to be released into

 

the environment, monitoring, maintenance, or the taking of other

 

actions that may be necessary to prevent, minimize, or mitigate

 

injury to the public health, safety, or welfare, or to the

 

environment.

 

     (dd) "Remedial action plan" means a work plan for performing

 

remedial action under this part.

 

     (ee) "Response activity" means evaluation, interim response

 

activity, remedial action, demolition, or the taking of other

 

actions necessary to protect the public health, safety, or welfare,

 

or the environment or the natural resources. Response activity also

 

includes health assessments or health effect studies carried out

 

under the supervision, or with the approval of, the department of

 

public health and enforcement actions related to any response

 

activity.

 

     (ff) "Response activity costs" or "costs of response activity"

 

means all costs incurred in taking or conducting a response

 

activity, including enforcement costs.

 

     (gg) "School" means all buildings, playgrounds, athletic

 

fields, and other real property owned or leased by a private or

 

public elementary or secondary institution of learning for any of

 


grades kindergarten through 12. School does not include a family

 

residence used as a home school.

 

     (hh) (gg) "Security interest" means any interest, including a

 

reversionary interest, in real property created or established for

 

the purpose of securing a loan or other obligation. Security

 

interests include, but are not limited to, mortgages, deeds of

 

trusts, liens, and title pursuant to lease financing transactions.

 

Security interests may also arise from transactions such as sale

 

and leasebacks, conditional sales, installment sales, trust receipt

 

transactions, certain assignments, factoring agreements, accounts

 

receivable financing arrangements, consignments, or any other

 

transaction in which evidence of title is created if the

 

transaction creates or establishes an interest in real property for

 

the purpose of securing a loan or other obligation.

 

     (ii) (hh) "Site" means the location of environmental

 

contamination.

 

     (jj) (ii) "Threatened release" or "threat of release" means

 

any circumstance that may reasonably be anticipated to cause a

 

release.

 

     (2) As used in this part, the phrase "a person who is liable"

 

includes a person who is described as being subject to liability in

 

section 20126. The phrase "a person who is liable" does not presume

 

that liability has been adjudicated.

 

     Sec. 20121. Before beginning construction of a school, the

 

owner or operator of the school shall conduct an environmental

 

assessment of the property to determine all of the following:

 

     (a) Whether the property is a facility.

 


     (b) The nature and extent of the owner's or operator's due

 

care obligations under section 20107a and the response activities

 

necessary to fulfill those obligations.

 

     (c) The nature and extent of any response activities that the

 

owner or operator is required to conduct.

 

     Sec. 20122. (1) Except as provided in subsection (2) or (3), a

 

school shall not be constructed or operated on property that is or

 

was a facility.

 

     (2) If response activities that satisfy the cleanup criteria

 

for limited residential use established under section 20120a(1)(f)

 

and (17), or corrective action that satisfies the cleanup criteria

 

for restricted residential use established under part 213, have

 

been completed at the property, a school may be constructed and

 

operated on the property if the owner or operator of the school

 

monitors the property, including, if applicable, soil, air, and

 

indoor air, to demonstrate that no unacceptable exposures to

 

hazardous substances exist. The monitoring shall be conducted in

 

conformity with a written monitoring plan that contains a schedule

 

for conducting the monitoring and is approved by the department.

 

The department shall not approve a monitoring plan under this

 

subsection unless the owner or operator of the school has done both

 

of the following:

 

     (a) Provided public notice, in the manner required under

 

subsection (4), of the environmental contamination at the site, the

 

proposed monitoring plan, the results of any monitoring that has

 

already been conducted at the site, and the right to request a

 

hearing under subdivision (b).

 


     (b) If requested by any person within 14 days after public

 

notice is provided under subdivision (a), conducted a public

 

hearing in the vicinity of the site. The owner or operator of the

 

school shall give public notice of the hearing in the manner

 

required under subsection (4).

 

     (3) If response activities that satisfy the cleanup criteria

 

for residential use established under section 20120a(1)(a) and

 

(17), or corrective action that satisfies the cleanup criteria for

 

unrestricted residential use established under part 213, have been

 

completed at the property, a school may be constructed and operated

 

on the property if the owner or operator does all of the following:

 

     (a) Provides public notice, in the manner required under

 

subsection (4), of the prior status of the property as a facility

 

and of testing results that demonstrate that the property satisfies

 

the cleanup criteria for residential use established under section

 

20120a(1)(a) and (17) or for unrestricted residential use under

 

part 213.

 

     (b) Provides the public an opportunity to comment.

 

     (c) If requested by the department based on new information

 

received by the department that the conditions at the school are

 

reasonably likely to fail to satisfy the cleanup criteria for

 

residential use established under section 20120a(1)(a) and (17) or

 

for unrestricted residential use under part 213, conducts an

 

environmental assessment. The environmental assessment shall be

 

conducted in conformity with a written assessment plan that

 

contains a schedule for conducting the environmental assessment and

 

is approved by the department. The department shall not approve an

 


assessment plan under this subsection unless the owner or operator

 

has done both of the following:

 

     (i) Provided public notice, in the manner required under

 

subsection (4), of the environmental contamination at the site, the

 

proposed assessment plan, the results of any environmental

 

assessment that has already been conducted at the site, and the

 

right to request a hearing under subparagraph (ii).

 

     (ii) If requested by any person within 14 days after public

 

notice is provided under subparagraph (i), conducted a public

 

hearing in the vicinity of the site. The owner or operator of the

 

school shall give public notice of the hearing in the manner

 

required under subsection (4).

 

     (4) Notice under this section, including notice of a public

 

hearing, shall be published in a newspaper of general circulation

 

in the city, village, or township where the school is or will be

 

located and shall include information considered appropriate by the

 

department.