May 24, 2012, Introduced by Reps. MacGregor, Pscholka, Opsommer and Kowall and referred to the Committee on Natural Resources, Tourism, and Outdoor Recreation.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 5402 and 5406 (MCL 324.5402 and 324.5406),
as added by 1997 PA 26.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 5402. As used in this part:
2 (a) "Department" means the department of environmental
3 quality or its authorized agent or representative.
4 (b) "Director" means the director of the department of
5 environmental quality or his or her designated representative.
6 (c) "Disadvantaged community" means a municipality in which
7 all of the following conditions are met:
8 (i) Users within the area served by a proposed public water
9 supply project are directly assessed for the costs of
10 construction.
1 (ii) The median annual household income of the area served by
2 a proposed public water supply project does not exceed 120% of
3 the statewide median annual household income for Michigan.
4 (iii) The municipality demonstrates at least 1 of the
5 following:
6 (A) More than 50% of the area served by a proposed public
7 water supply project is identified as a poverty area by the
8 United States bureau of the census or is an environmental justice
9 area of concern as defined by the United States environmental
10 protection agency.
11 (B) The median annual household income of the area served by
12 a proposed public water supply project is less than the most
13 recently published federal poverty guidelines for a family of 4
14 in the 48 contiguous United States. In determining the median
15 annual household income of the area served by the proposed public
16 water supply project under this subparagraph, the municipality
17 shall utilize the most recently published statistics from the
18 United States Bureau of the Census, updated to reflect current
19 dollars, for the community which most closely approximates the
20 area being served. If these figures are not available for the
21 area served by the proposed public water supply project, the
22 municipality may have a survey conducted to document the median
23 annual household income of the area served by the project.
24 (C) The median annual household income of the area served by
25 a proposed public water supply project is less than the most
26 recently published statewide median annual household income for
27 Michigan, this state,
and annual user costs for water supply
1 exceed 1.5% 1% of the median annual household income of the area
2 served by the proposed public water supply project.
3 (D) The median annual household income of the area served by
4 a proposed public water supply project is not greater than 120%
5 of the statewide median annual household income for Michigan,
6 this state, and annual user costs for water supply exceed 3% of
7 the median annual household income of the area served by the
8 proposed project.
9 (d) "Federal safe drinking water act" means title
XIV of the
10 public health service act, chapter 373, 88 Stat. 1660, the safe
11 drinking water act, 42 USC 300f to 300j-26, and the rules
12 promulgated under that act.
13 (e) "Fund" means the safe drinking water revolving fund
14 created in established
under section 16b of the shared credit
15 rating act, 1985 PA 227, MCL 141.1066b.
16 (f) "Fundable range" means those projects, taken in
17 descending order on the priority list, for which the department
18 estimates sufficient funds exist to provide assistance during
19 each annual funding cycle.
20 (g) "Municipality" means a city, village, county, township,
21 authority, public school district, or other public body with
22 taxing authority, including an intermunicipal agency of 2 or more
23 municipalities, authorized or created under state law.
24 (h) "Noncommunity water supply" means a public water supply
25 that is not a community water supply, but that has not less than
26 15 service connections or that serves not less than 25
27 individuals on an average daily basis for not less than 60 days
1 per year.
2 Sec. 5406. (1) The department shall annually develop a
3 priority list of projects eligible for assistance under this
4 part. Projects that are not funded during the year that a
5 priority list developed under this section is in effect shall be
6 automatically prioritized on the next annual list using the same
7 criteria, unless the water supplier submits an amendment to its
8 project plan that introduces new information to be used as the
9 basis for prioritization. The priority list shall be based on
10 project plans submitted by water suppliers under section 5405 and
11 the criteria listed in subdivisions (a) through (f). Each project
12 shall be assigned points up to a maximum of 1,000. The point
13 values are maximum values available for each category or
14 subcategory listed in this section and shall only be awarded if
15 the project substantially addresses the problem for which the
16 point award is given. If a project is primarily designed to
17 replace individual wells at private homes, 50% or more of the
18 homes in the affected area shall meet equivalent water quality or
19 infrastructure deficiency criteria listed in subdivisions (a)
20 through (f) in order to receive the maximum available points. If
21 less than 50% of the homes in the affected area can demonstrate
22 deficiencies, 1/2 of the total points available shall be awarded.
23 Points shall be awarded as follows:
24 (a) A maximum of 450 points may be awarded to a project that
25 addresses drinking water quality as outlined in Act 399, if the
26 project:
27 (i) Is designed to eliminate an acute violation of a drinking
1 water standard as defined in part 4 of the administrative rules
2 for Act 399. described
in R 325.10401 to R 325.10420 of the
3 Michigan administrative code. A violation of a surface water
4 treatment technique, or if a waterborne disease outbreak has been
5 documented, 250 points shall be awarded for each violation.
6 (ii) Is designed to eliminate a violation of a drinking water
7 standard other than those outlined in subparagraph (i), 200 points
8 shall be awarded for each violation.
9 (iii) Is designed to upgrade a facility to maintain compliance
10 with drinking water standards or system capacity requirements,
11 150 points shall be awarded.
12 (iv) Is designed to eliminate an exceedance of a secondary
13 maximum contaminant level for aesthetic water quality, 25 points
14 shall be awarded.
15 (b) A maximum of 350 points may be awarded to a project that
16 addresses infrastructure improvements, as follows:
17 (i) If source or treatment facilities are upgraded, including
18 the watermains to connect to the distribution system, a maximum
19 of 125 points shall be awarded, if the improvement is:
20 (A) To meet minimum capacity requirements, 100 points shall
21 be awarded.
22 (B) For reliability, 75 points shall be awarded.
23 (C) For other source or treatment facility upgrades not
24 included in subparagraph (i)(A) or (B), 25 points shall be
25 awarded.
26 (D) To satisfy the conditions of a formal enforcement
27 action, 25 points shall be awarded. Points awarded for formal
1 enforcement actions are in addition to the maximum points
2 allowable in any category.
3 (E) For source water protection, 50 points shall be awarded.
4 (ii) If transmission or distribution watermains are upgraded,
5 a maximum of 125 points shall be awarded, if the improvement is:
6 (A) To meet minimum capacity where flow or residual pressure
7 is less than acceptable, 100 points shall be awarded.
8 (B) For reliability, including looping or redundant feeds,
9 75 points shall be awarded.
10 (C) Other transmission or distribution system upgrades not
11 included in subparagraph (ii)(A) or (B), 25 points shall be
12 awarded.
13 (D) To satisfy the conditions of a formal enforcement
14 action, 25 points shall be awarded. Points awarded for formal
15 enforcement actions are in addition to the maximum points
16 allowable in any category.
17 (iii) If water storage facilities or pumping stations are
18 upgraded, a maximum of 125 points shall be awarded, if the
19 improvement is:
20 (A) To meet minimum capacity where storage or pumping
21 capacity is less than minimum requirements, 100 points shall be
22 awarded.
23 (B) For reliability, 75 points shall be awarded.
24 (C) Other storage facility or pumping station upgrades not
25 included in subparagraph (iii)(A) or (B), 25 points shall be
26 awarded.
27 (D) To satisfy the conditions of a formal enforcement
1 action, 25 points shall be awarded. Points awarded for formal
2 enforcement actions are in addition to the maximum points
3 allowable in any category.
4 (c) A maximum of 50 points shall be awarded based on the
5 population served by the water system according to the following
6 table. However, a transient noncommunity water supply as defined
7 in section 2 of Act 399, MCL 325.1002, is eligible for 1/2 of the
8 point value listed in the following table:
9 Population Points
10 >50,000 50
11 10,001 – 50,000 40
12 3,301 – 10,000 30
13 501 – 3,300 20
14 0 – 500 10
15 (d) A maximum of 50 points shall be awarded to a community
16 water supply that is serves
a disadvantaged community.
17 (e) A maximum of 100 points shall be awarded for projects
18 that include consolidation as follows:
19 (i) If 1 or more public water supplies are brought into
20 compliance with state drinking water standards as a result of
21 consolidation, 100 points shall be awarded.
22 (ii) If deficiencies, which are documented in writing by the
23 department, at 1 or more public water supplies are corrected as a
24 result of consolidation, 60 points shall be awarded.
25 (iii) Other consolidations, not included under subparagraph
26 (i) or (ii), shall be awarded 40 points.
1 (f) For communities that have completed a wellhead
2 protection plan or a an
approved source water protection plan,
3 program, 100 points shall be awarded.
4 (g) After scoring, using the criteria in subdivisions (a)
5 through (f), if 2 or more projects have the same score, the
6 following tie-breaker shall be applied:
7 (i) If the system has fewer than 2 violations of the
8 monitoring, record-keeping, and reporting requirements of Act 399
9 in the previous 2-year reporting period, or no violations if
10 ownership of the system has changed in the previous 2 years, it
11 shall rank above systems having more violations.
12 (ii) After applying the tie-breaker in subparagraph (i), if 2
13 or more projects score exactly the same, a calculation of the
14 cost per population served by the water system shall be made. The
15 affected projects shall be ranked with the lowest highest ratio
16 of cost to population ranked higher.
17 (2) The priority list shall be submitted annually to the
18 chairpersons of the senate and house of representatives standing
19 committees that primarily consider legislation pertaining to the
20 protection of public health and the environment.
21 (3) In preparing the priority list, to ensure that a
22 disproportionate share of available funds for a given fiscal year
23 is not committed to a single water supply project, the department
24 may segment a project if either of the following criteria is
25 present:
26 (a) The cost of the proposed project is more than 30% of the
27 total amount available in the fund during the fiscal year.
1 (b) The department has approved a water supplier's
2 application for segmenting a project.
3 (4) Segments of a project that have been segmented under
4 subsection (3) shall be assigned priority points based on the
5 project as identified in the project plan. After funding
6 assistance for the first segment is accepted, the remaining
7 segments will retain first priority for funding assistance on the
8 next 3 fiscal year priority lists. All projects with previously
9 funded segments will be designated with first priority. Ranking
10 order for these projects to receive funding assistance will be
11 subject to the relative ranking of all first segment projects.
12 (5) In preparing the intended use plan, the department shall
13 make every effort to assure that funding for assistance is
14 equitably distributed among public water supplies of varying
15 sizes.
16 (6) For purposes of providing assistance, the priority list
17 shall take effect on the first day of each fiscal year.
18 Enacting section 1. This amendatory act does not take effect
19 unless all of the following bills of the 96th Legislature are
20 enacted into law:
21 (a) Senate Bill No.____ or House Bill No. 5673(request no.
22 05373'12 *).
23 (b) Senate Bill No.____ or House Bill No. 5674(request no.
24 05374'12 *).
25 (c) Senate Bill No.____ or House Bill No. 5676(request no.
26 05376'12 *).