Bill Text: MI HB6245 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Environmental protection; funding; clean Michigan initiative reauthorization funds; provide for distribution and allocation. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding secs. 5207, 5208, 19808, 19809, 19810, 19811, 19812, 19813, 19814 & 19815. TIE BAR WITH: HB 6243'18, HB 6244'18
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-08-15 - Bill Electronically Reproduced 06/12/2018 [HB6245 Detail]
Download: Michigan-2017-HB6245-Introduced.html
HOUSE BILL No. 6245
June 12, 2018, Introduced by Reps. Cambensy, Sabo, Rabhi, Green, Chang, Geiss, Lasinski, Elder, Hertel, Sowerby, Yancey, Yanez, Moss, LaGrand, Sneller, Zemke, Cochran, Singh, Durhal, Greig, Neeley, Faris, Brinks, Wittenberg, Chirkun, Phelps, Hammoud, Gay-Dagnogo and Jones and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding sections 5207, 5208, 19808,
19809, 19810, 19811, 19812, 19813, 19814, and 19815.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5207. (1) The onsite wastewater treatment system fund is
created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the onsite wastewater treatment system
fund. The state treasurer shall direct the investment of the onsite
wastewater treatment system fund. The state treasurer shall credit
to the onsite wastewater treatment system fund interest and
earnings from fund investments.
(3) Money in the onsite wastewater treatment system fund at
the close of the fiscal year shall remain in the fund and shall not
lapse to the general fund.
(4) The department shall be the administrator of the onsite
wastewater treatment system fund for auditing purposes.
(5) The department shall expend money from the onsite
wastewater treatment system fund, upon appropriation, only to
provide grants to financially distressed homeowners to repair or
replace failing onsite wastewater treatment systems.
Sec. 5208. (1) The water and sewer infrastructure fund is
created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the water and sewer infrastructure
fund. The state treasurer shall direct the investment of the water
and sewer infrastructure fund. The state treasurer shall credit to
the water and sewer infrastructure fund interest and earnings from
fund investments.
(3) Money in the water and sewer infrastructure fund at the
close of the fiscal year shall remain in the water and sewer
infrastructure fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the water and
sewer infrastructure fund for auditing purposes.
(5) The department shall expend money from the water and sewer
infrastructure fund, upon appropriation, only for 1 or more of the
following purposes:
(a) A grant program for local units of government for the
repair, replacement, and development of sewage infrastructure.
(b) A grant program for local units of government for the
repair, replacement, and development of drinking water
infrastructure.
Sec. 19808. (1) Money in the fund that is allocated under
section 19807 shall be used for the following purposes:
(a) Money allocated under section 19807(1)(a) shall be used
for the following:
(i) $100,000,000.00 shall be deposited into the state water
pollution control revolving fund established under section 16a of
the shared credit rating act, 1985 PA 227, MCL 141.1066a.
(ii) $100,000,000.00 shall be deposited into the state
drinking water revolving fund established under section 16b of the
shared credit rating act, 1985 PA 227, MCL 141.1066b.
(iii) $300,000,000.00 shall be deposited into the water and
sewer infrastructure fund created in section 5208.
(b) Money allocated under section 19807(1)(b) shall be
deposited into the clean water fund created in section 8807.
(c) Money allocated under section 19807(1)(c) shall be used
for nonpoint source pollution prevention and control grants or
wellhead protection grants pursuant to part 88.
(d) Money allocated under section 19807(1)(d) shall be
deposited into the onsite wastewater treatment system fund created
in section 5207.
(e) Money allocated under section 19807(1)(e) shall be used by
the department to fund all of the following:
(i) Corrective actions undertaken by the department to address
releases from leaking underground storage tanks pursuant to part
213.
(ii) Response activities undertaken by the department at
facilities pursuant to part 201 to address public health and
environmental problems including the remediation of perfluoroalkyl
and polyfluoroalkyl substances (PFAS).
(iii) Assessment activities undertaken by the department to
determine whether a property is a facility.
(f) Money allocated under section 19807(1)(f) shall be used
for response activities for the remediation of contaminated lake
and river sediments pursuant to part 201.
(g) Money allocated under section 19807(1)(g) shall be
distributed as follows:
(i) $125,000,000.00 shall be deposited into the lead abatement
fund created in section 11e of the safe drinking water act, 1976 PA
399, MCL 325.1011e.
(ii) $125,000,000.00 shall be deposited into the lead-safe
homes fund created in section 5474d.
(h) Money allocated under section 19807(1)(h) shall be
expended as follows:
(i) $10,000,000.00 shall be deposited into the retired
engineers technical assistance program fund created in section
14512.
(ii) $5,000,000.00 shall be deposited into the small business
pollution prevention assistance revolving loan fund created in
section 14513.
(iii) $10,000,000.00 shall be used by the department to
implement pollution prevention activities other than those funded
under subparagraphs (i) and (ii).
(i) Money allocated under section 19807(1)(i) shall be used
for waterfront redevelopment grants pursuant to part 795.
(2) The money allocated under section 19807(1)(e) shall be
used for facilities that pose an imminent or substantial
endangerment to the public health, safety, or welfare, or to the
environment. For purposes of this subsection, facilities that pose
an imminent or substantial endangerment include, but are not
limited to, those where public access poses hazards because of
potential exposure to chemicals or safety risks and where
contamination threatens drinking water supplies.
(3) Before expending any funds allocated under subsection
(1)(f) at a site that is an area of concern as designated by the
parties to the Great Lakes water quality agreement, the department
shall notify the public advisory council established to oversee
that area of concern regarding the development, implementation, and
evaluation of response activities to be conducted with money in the
fund at that area of concern.
(4) Money in the fund shall not be used to develop a municipal
or commercial marina.
(5) Money from the fund may be used by the department of
treasury to pay for the cost of issuing bonds and not more than 3%
of the total amount specified in section 19807(1) shall be
available for appropriation to the administering state departments
to pay their costs directly associated with the completion of a
project authorized by section 19807(1). It is the intent of the
legislature that general fund appropriations to the department
shall not be reduced as a result of costs funded pursuant to this
subsection.
(6) Each administering state department shall submit annually
a list of all projects that the department proposes will be
undertaken by that department with money from the fund. The list
shall be submitted to the governor, the standing committees of the
house of representatives and the senate that primarily address
issues pertaining to the protection of natural resources and the
environment, and the appropriations committees in the house of
representatives and the senate. The list shall be submitted to the
legislative committees not later than February 15 of each year.
This list shall also be submitted before any request for
supplemental appropriation of bond funds. For each eligible
project, the list shall include the nature of the eligible project;
the county in which the eligible project is located; an estimate of
the total cost of the eligible project; and other information
considered pertinent by the administering state department. A
project that is funded by a grant or loan with money from the fund
does not need to be included on the list submitted under this
subsection. However, money in the fund that is appropriated for
grants and loans shall not be encumbered or expended until the
administering state department has reported those projects that
have been approved for a grant or a loan to the standing committees
of the house of representatives and the senate that primarily
address issues pertaining to the protection of natural resources
and the environment and to the appropriations subcommittees in the
house of representatives and the senate on natural resources and
environmental quality. Before submitting the first cycle of
recommended projects under subsection (1)(e), the department shall
publish and disseminate the criteria it will use in evaluating and
recommending projects for funding.
(7) The legislature shall appropriate prospective or actual
bond proceeds for projects proposed to be funded. Appropriations
shall be carried over to succeeding fiscal years until the project
for which the funds are appropriated is completed.
(8) Not later than December 31 of each year, each
administering state department shall submit a list of the projects
financed under this part by that department to the governor, the
standing committees of the house of representatives and the senate
that primarily address issues pertaining to the protection of
natural resources and the environment, and the subcommittees of the
house of representatives and the senate on appropriations on
natural resources and environmental quality. Each list shall
include the name, address, and telephone number of the recipient or
participant, if appropriate; the name and location of the project;
the nature of the project; the amount of money allocated to the
project; the county in which the project is located; a brief
summary of what has been accomplished by the project; and other
information considered pertinent by the administering state
department.
Sec. 19809. An application for a grant from the fund shall be
made on a form or in a format prescribed by the administering state
department. The administering state department may require the
applicant to provide any information reasonably necessary to allow
the administering state department to make a determination required
by this part.
Sec. 19810. The administering state department shall not make
a grant with money from the fund unless all of the following
conditions are met:
(a) The applicant demonstrates that the proposed project is in
compliance with all applicable state laws and rules or will result
in compliance with state laws and rules.
(b) The applicant demonstrates to the administering state
department the capability to carry out the proposed project.
(c) The applicant demonstrates to the administering state
department that there is an identifiable source of funds for the
future maintenance and operation of the proposed project, if
appropriate.
(d) Within the last 24 months, the applicant has successfully
undergone an audit conducted in accordance with generally accepted
auditing standards.
(e) Within the last 24 months, the applicant has not had a
grant from the administering state department revoked or terminated
or had the administering state department determine that the
applicant demonstrated an inability to manage a grant.
Sec. 19811. Prior to making a grant with money from the fund,
the administering state department shall consider the extent to
which the grant will contribute to the achievement of a balanced
distribution of grants throughout the state.
Sec. 19812. (1) A recipient of a grant made with money from
the fund shall do both of the following:
(a) Keep an accounting of the money spent on the project or
facility in a generally accepted manner. The accounting shall be
subject to a postaudit.
(b) Obtain authorization from the administering state
department before implementing a change that significantly alters
the proposed project.
(2) The administering state department may revoke a grant made
with money from the fund or withhold payment if the recipient fails
to comply with the terms and conditions of the grant agreement or
with the requirements of this part or the rules promulgated under
this part, or with other applicable law or rules. If a grant is
revoked, the administering state department may recover all funds
awarded.
(3) The administering state department may withhold a grant
until the administering state department determines that the
recipient is able to proceed with the proposed project.
(4) To ensure timely completion of a project, the
administering state department may withhold 10% of the grant amount
until the project is complete.
(5) If an approved applicant fails to sign a grant agreement
within 90 days after receipt of a written grant offer by the
administering state department, the administering state department
may cancel the grant offer. The applicant may not appeal or contest
a cancellation pursuant to this subsection.
(6) The administering state department may terminate a grant
agreement and require immediate repayment of the grant if the
recipient uses grant funds for any purpose other than for the
approved activities specified in the grant agreement. The
administering state department shall provide the recipient written
notice of the termination 30 days prior to the termination.
Sec. 19813. The department and the department of the attorney
general may recover costs expended pursuant to section 19808(1)(e)
for corrective actions, response activities, site assessments, and
all other recoverable costs under part 201 from persons who are
liable under part 201. Actions to recover costs shall be undertaken
in the manner provided in part 201.
Sec. 19814. Every 2 years that state programs funded with
money from the fund continue to be administered, the auditor
general shall conduct a performance audit of these programs. Upon
completion of a performance audit under this section, the auditor
general shall submit a copy of the performance audit to the audited
department and to the legislature.
Sec. 19815. The department may promulgate rules as are
necessary to implement this part.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6243 (request no.
06187'18).
(b) Senate Bill No.____ or House Bill No. 6244 (request no.
06530'18).
Enacting section 2. This amendatory act does not take effect
unless the question provided for in the clean Michigan initiative
reauthorization act is approved by a majority of the registered
electors voting on the question at the next general election.
