January 11, 2018, Introduced by Rep. Victory and referred to the Committee on Transportation and Infrastructure.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 50.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 50 WATER ASSET MANAGEMENT COUNCIL
Sec. 5001. As used in this section:
(a) "Asset management" means an ongoing process of
maintaining, upgrading, and operating physical assets cost-
effectively, based on a continuous physical inventory and condition
assessment and investment to achieve performance goals.
(b) "Asset management plan" means a set of procedures to
manage assets through their life cycles, based on principles of
life cycle costing.
(c) "Asset owner" means a person that owns or operates an
asset.
(d) "Central storage data agency" means the entity selected by
the council where the data collected are stored and maintained.
(e) "Council" means the water asset management council created
in section 5002.
(f) "Department" means the department of environmental
quality.
(g) "Drinking water assets" means a system of pipes and
structures through which water is obtained and distributed,
including, but not limited to, wells and well structures, wellhead
protection areas, groundwater protection areas, intakes and cribs,
pumping stations, treatment plants, storage tanks, pipelines, and
appurtenances, or a combination of these pipes and structures that
are used or intended for use for the purpose of furnishing water
for drinking or household purposes.
(h) "Michigan infrastructure council" means the Michigan
infrastructure council created in the Michigan infrastructure
council act.
(i) "Performance goals" means standards of system performance
that reflect asset management principles for asset preservation and
sustainability, operations, capacity consistent with local needs,
and identified levels of service.
(j) "Region" means the geographic jurisdiction of any of the
following:
(i) A regional planning commission created pursuant to 1945 PA
281, MCL 125.11 to 125.25.
(ii) A regional economic development commission created
pursuant to 1966 PA 46, MCL 125.1231 to 125.1237.
(iii) A metropolitan area council formed pursuant to the
metropolitan councils act, 1989 PA 292, MCL 124.651 to 124.729.
(iv) A metropolitan planning organization established pursuant
to federal law.
(v) An agency directed and funded by section 822f of article
VIII of 2016 PA 268 to engage in joint decision-making practices
related but not limited to community development, economic
development, talent, and infrastructure opportunities.
(k) "Sewer assets" means a system of pipes and structures,
including pipes, channels, conduits, manholes, pumping stations,
sewage or wastewater treatment fixed assets, diversion and
regulatory devices, outfall structures, and appurtenances, used to
collect, convey, transport, treat, or otherwise handle sanitary
sewage.
(l) "Stormwater assets" means green or gray features that are
located within the geographic limits of an asset service area and
are designed or actively managed by a local unit of government for
collecting, storing, treating, conveying, or attenuating
stormwater, such as catch basins, curbs, gutters, ditches and
channels solely conveying stormwater, pipes, conduits, swales,
bioswales, storm drains, gulches, gullies, flumes, culverts,
bridges, siphons, retention, detention, or infiltration areas,
floodwalls, levees, pumping stations, and other similar facilities.
Sec. 5002. (1) The water asset management council is created
within the department.
(2) The council shall consist of 9 voting members appointed by
the Michigan infrastructure council, who shall serve at the
pleasure of the Michigan infrastructure council. The members shall
represent the nonprofit, public, and private sectors and academia,
including individuals representing interests such as water, sewer,
and stormwater agencies, this state, regional government, local
units of government, and environmental organizations. The council
may appoint the central data storage agency as an ex officio,
nonvoting member.
(3) Council members shall serve for a term of 3 years.
However, of the initial appointments to the council, 3 shall serve
for 1 year, 3 shall serve for 2 years, and 3 shall serve for 3
years. A vacancy on the council shall be filled in the same manner
as the original appointment.
(4) At the first meeting of the council, the council shall
select a chairperson from among its members.
(5) The council may appoint subcommittees whose members serve
as needed to provide research on issues and projects as determined
by the council.
(6) The department shall provide qualified administrative
staff and qualified technical assistance to the council.
Sec. 5003. The council shall do all of the following:
(a) Advise the Michigan infrastructure council on a statewide
water asset management strategy and the processes and tools needed
to implement a strategy for all water, sewer, and stormwater
agencies and asset owners.
(b) Promote and oversee the implementation of the
recommendations from the regional infrastructure asset management
pilot program created under Executive Directive 2017-1 at a state
level related to water, sewer, and stormwater infrastructure.
(c) Develop a template for an asset management plan by October
1, 2019 for use under section 5004 by local water, sewer, and
stormwater agencies and asset owners submitting asset management
plans to the council for approval. At a minimum, the template
should ensure that local asset management plans include all of the
following components:
(i) An asset inventory that includes the location, material,
size, and condition of the assets in a format that allows for
digital mapping. All quality control standards and protocols shall,
at a minimum, be consistent with existing federal requirements and
regulations and existing government accounting standards.
(ii) A level of service analysis that includes desired levels
of service and performance goals of the assets to help the system
achieve reliability, responsiveness, safety, capacity,
environmental impacts, cost and affordability, and compliance with
law. Levels of service may vary among assets under the local
agency's jurisdiction.
(iii) A risk of failure analysis that identifies the
probability and criticality of failure of the most critical assets
and any contingency plans.
(iv) Anticipated revenues and expenses, including a
description of all revenue sources and anticipated receipts for the
period of the asset management plan, and expected infrastructure
repair and replacement expenditures, including planned improvements
or capital reconstruction.
(v) A performance outcomes analysis that determines how the
investment strategy achieves the desired levels of service and
performance goals. The asset management plan must include steps
necessary to ensure asset conditions meet or achieve stated goals,
including a description and explanation for any gap between
achievable condition and performance through the investment
strategy and desired goals.
(vi) A description of how the agency plans to coordinate with
other asset owners, including neighboring jurisdictions, to
minimize duplication of effort with regard to infrastructure
preservation and maintenance.
(vii) Proof of acceptance, certification, or adoption by the
jurisdiction's governing body.
Sec. 5004. By October 1, 2019, the council shall establish a
schedule for submission of asset management plans for water, sewer,
and stormwater agencies and asset owners that includes all of the
following:
(a) Beginning October 1, 2020, each water, sewer, and
stormwater agency and asset owner shall submit an asset management
plan to the council.
(b) The asset management plans submitted under subdivision (a)
shall cover and be valid for a minimum of 3 years and shall be
consistent with the template provided by the council.
(c) The asset management plans submitted under subdivision (a)
shall be reviewed by the council within 6 months of receipt. The
council shall compare submitted asset management plans to the
minimum components required by this act and the template provided
by the council and shall determine if the asset management plans
are in compliance with those standards. If the council determines
that an asset management plan does not meet established standards,
the council shall seek concurrence from the department. If the
department concurs, the council shall require that the entity
submitting the asset management plan meet acceptable standards
within 6 months of the submittal.
(d) A water, sewer, or stormwater agency or asset owner that
is required under this part to have an approved asset management
plan must implement the approved asset management plan by October
1, 2024.
Sec. 5005. The council shall annually submit to the Michigan
infrastructure council a report on asset condition and investment
that includes a summary analysis of the asset management plans
received from drinking water, sewer, and stormwater entities. The
report shall also include recommendations on water, sewer, and
stormwater condition goals and analysis of how the utilities are
meeting those goals. The water infrastructure asset management
analyses contained in the report shall be consistent with the
Michigan infrastructure council's asset management process and
shall be reported consistent with categories established by the
Michigan infrastructure council.
Sec. 5006. (1) State funding may be provided to water, sewer,
and stormwater agencies and asset owners to implement this part at
a cost-share determined by the council. Funding necessary for the
department to support the activities described in this section
shall be provided by an annual appropriation.
(2) Each water, sewer, and stormwater agency and asset owner
shall annually report to the council, consistent with current
accounting procedures, how its capital improvement plans are
meeting its investment goals, to ensure consistency with its asset
management plans.
(3) The department and each drinking water, sewer, and
stormwater agency and asset owner shall keep accurate and uniform
records on all work performed and funds expended for the purposes
of this section, according to the procedures developed by the
Michigan infrastructure council.
(4) The council shall annually prepare a report on the
activities conducted during the preceding year and the expenditure
of funds related to the processes and activities identified by the
council. The report shall also include an overview of the
activities identified for the succeeding year. The council shall
submit this report to the Michigan infrastructure council and the
legislature by May 2 of each year.
Sec. 5007. (1) The council shall identify training needs to
develop proficiency in using a multi-asset management system for
water, sewer, and stormwater agencies and asset owners, and
training to identify asset system conditions based on a statewide
asset condition measure.
(2) The council shall coordinate and collaborate with the
transportation asset management council on planning, reporting, and
training.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No.____ (request no.
04467'17) of the 99th Legislature is enacted into law.