HB-4583, As Passed Senate, October 10, 2017

SUBSTITUTE FOR

HOUSE BILL NO. 4583

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 21506a and 21510d (MCL 324.21506a and

324.21510d), section 21506a as amended by 2016 PA 467 and section

21510d as added by 2016 PA 380, and by adding section 21519a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 21506a. (1) The refined petroleum fund is created within

the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the refined petroleum fund. The state

treasurer shall direct the investment of the refined petroleum

fund. The state treasurer shall credit to the refined petroleum

fund interest and earnings from refined petroleum fund investments.

(3) Money in the refined petroleum fund at the close of the

fiscal year ~~shall remain~~ remains in the refined petroleum fund and

~~shall~~ does not lapse to the general fund.

(4) Money from the refined petroleum fund shall be expended,

upon appropriation, only for 1 or more of the following purposes:

(a) Corrective actions performed by the department pursuant to

section 21320.

(b) The legacy release program created in section 21519a.

administering the refined petroleum fund and implementing part 213.

(d) ~~(c)~~ Not more than $5,000,000.00 annually for petroleum

product inspection programs under both of the following:

(i) The weights and measures act, 1964 PA 283, MCL 290.601 to

290.635.

(ii) The motor fuels quality act, 1984 PA 44, MCL 290.641 to

290.650d.

(e) ~~(d)~~ Not more than $3,000,000.00 annually for the bureau of

fire services and office of the state fire marshal, storage tank

division, in the department of licensing and regulatory affairs.

~~(e) Other purposes as determined by the legislature.~~

(f) Reimbursement by the authority to local units of

government and county road commissions for the costs of corrective

action to manage, relocate, or dispose of any media contaminated by

regulated substances left in place within a public highway pursuant

to section 21310a if all of the following occur:

(i) The local unit of government or county road commission has

submitted to the authority a claim for reimbursement on a form

created by the authority.

(ii) The claim for reimbursement is for reasonable and

necessary eligible corrective action costs determined by the

administrator pursuant to section 21515(2) to (10).

(iii) The amount of reimbursement is not more than $200,000.00

per claim.

(g) Not more than $5,000,000.00 annually for the department to

provide grants and loans in accordance with part 196 to facilitate

brownfield redevelopment at part 213 properties. Money shall not be

provided under this subsection to fund the performance of response

activities at a part 213 property to address contamination that is

solely attributable to a release regulated under part 201.

(h) The permanent closure of an underground storage tank

system by the department if the underground storage tank system

meets the conditions that require permanent closure under R 29.2153

of the Michigan Administrative Code or the department determines it

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

environment.

Sec. 21510d. If an owner or operator intends to rely on the

fund to meet financial responsibility requirements, the owner or

operator shall submit to the authority a request for a

determination that the owner or operator would be eligible for

funding under this part in the event of a release from a refined

petroleum underground storage tank system. Upon receipt of a

request under this subsection, the authority shall make a

determination and provide notice of that determination, in writing,

to the owner or operator. The notice may contain conditions for

maintenance of that eligibility. A determination under this section

is based upon a demonstration of all of the following:

(a) The owner or operator is not ineligible for funding under

section 21510(4) and (5).

(b) The refined petroleum underground storage tank or tanks

are presently in compliance with the registration and fee

requirements of part 211.

(d) The owner or operator has financial responsibility for the

deductible amount. In order to demonstrate that the owner or

operator has financial responsibility for the deductible amount

under this section and section 21510(1)(f), the owner or operator

may rely upon any financial assurance mechanism listed in 40 CFR

280.95 to 280.107 or either of the following:

(i) A financial test of self-insurance. To pass the financial

test of self-insurance, the owner or operator must submit, on a

form developed by the authority, financial information certified as

accurate by the chief financial officer or comparable position that

demonstrates a tangible net worth of at least 3 times the

deductible amount required under this part.

(ii) A deposit account in the amount of the deductible amount

required under this part in a financial institution as defined in

section 1202 of the banking code of 1999, 1999 PA 276, MCL

487.11202, if access to the deposit account is restricted by a

deposit account control agreement or similar restriction as

approved by the authority that requires the approval of the

administrator for a withdrawal from the deposit account.

Sec. 21519a. (1) The department shall establish and the

authority shall administer a legacy release program as provided in

this section to reimburse eligible persons for costs of corrective

actions for certain historic releases from refined petroleum

underground storage tank systems. An eligible person may be

reimbursed for corrective action costs incurred if the eligible

person demonstrates all of the following:

(a) The release from which the corrective action or

indemnification arose was discovered and reported prior to December

30, 2014.

(b) The release upon which the request for reimbursement is

based has not been closed pursuant to part 213 prior to December

30, 2014.

that are operating at the location from which the release occurred

are currently in compliance with the registration requirements of

part 211.

(d) The request for reimbursement does not include

reimbursement for money that was reimbursed from any other source,

including insurance policies.

(e) A claim submitted to the legacy release program shall not

be approved by the authority for any of the prohibitions listed

under section 21510c.

(f) The request for reimbursement is for corrective action

performed on or after December 30, 2014.

(2) An eligible person that seeks to be reimbursed under the

legacy release program established under this section shall submit

to the authority a request for reimbursement on a form provided by

the authority containing the documentation required by the

authority.

(3) The authority shall approve a request for reimbursement

under this section only as follows:

(a) The amount approved for reimbursement shall be 50% of the

aggregate indemnification and corrective action costs incurred, but

not more than 50% of the reasonable and necessary eligible costs as

determined by the administrator pursuant to section 21515(2) to

(10).

(b) The total amount approved for reimbursement shall not

exceed a total of $50,000.00 for all releases from refined

petroleum underground storage tank systems at a single location.

claim or work invoice per section 21521.

(4) As used in this section, "eligible person" means the owner

or operator of a refined petroleum underground storage tank system

at the time of the reporting of the release.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.