HOUSE BILL No. 5301


     October 22, 1997, Introduced by Reps. Alley, Middaugh, Bodem, LaForge, Kilpatrick, Mans, Gagliardi, Griffin, Murphy, Anthony, McNutt, Law, Harder, Cherry, Bogardus, Brewer, Palamara, Callahan, LeTarte, Llewellyn, Rhead, Jellema, Wetters, DeHart, Varga, Green, McManus, Richner, Basham, Gernaat, Sikkema, Dobronski, Prusi, Galloway, Agee,
Schermesser, Baird and Perricone and referred to the Committee on Conservation, Environment and Recreation.


        A bill to amend 1994 PA 451, entitled

   "Natural resources and environmental protection act,"

   by amending section 21507 (MCL 324.21507),

   as amended by 1996 PA 181, and by adding section 21308b and part

   216.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 21308B.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS

 2    PART, FOLLOWING COMPLETION OF INITIAL RESPONSE ACTIONS UNDER SEC-

 3    TION 21307 AND SUBMITTAL OF AN INITIAL ASSESSMENT REPORT UNDER

 4    SECTION 21308A, THE DEPARTMENT SHALL NOT REQUIRE AN ELIGIBLE PAR-

 5    TICIPANT UNDER PART 216 TO PERFORM FURTHER CORRECTIVE ACTIONS OR

 6    SUBMIT ANY ADDITIONAL REPORTS UNDER THIS PART.

 7         Sec. 21507.  (1) The emergency response fund is created.






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 1         (2) The state treasurer shall direct the investment of the

 2    emergency response fund.  Interest and earnings of the emergency

 3    response fund shall remain in the emergency response fund.

 4         (3) Money in the emergency response fund at the close of the

 5    fiscal year shall remain in the emergency response fund and shall

 6    not lapse to the general fund.

 7         (4) Money in the emergency response fund shall not exceed

 8    $3,000,000.00.

 9         (5) Money in the emergency response fund shall be expended

10    by the department  to  FOR THE FOLLOWING PURPOSES AND IN THE FOL-

11    LOWING PRIORITY ORDER:

12         (A) TO undertake corrective actions  to address releases

13     from petroleum underground storage tank systems pursuant to

14     part 213  AT SITES POSING AN IMMINENT RISK TO THE PUBLIC HEALTH,

15    SAFETY, OR WELFARE, OR THE ENVIRONMENT.

16         (B)  (6) Not more than $3,000,000.00 shall be expended from

17     the emergency response fund in any year.  TO CONTRACT FOR THE

18    PERFORMANCE OF CORRECTIVE ACTIONS AT SITES OF ELIGIBLE PARTICI-

19    PANTS PURSUANT TO PART 216.

20         (6)  (7)  If money in the emergency response fund is

21    expended under subsection  (5)  (5)(A) AT SITES THAT ARE NOT

22    OWNED OR OPERATED BY AN ELIGIBLE PARTICIPANT AS DEFINED IN PART

23    216, the person or persons responsible for the corrective action

24    shall be liable to the state for all such expenditures.

25       PART 216 CONTRACTING ASSISTANCE FOR UNDERGROUND STORAGE TANK







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 1                                 CLEANUPS

 2         SEC. 21601.  AS USED IN THIS PART:

 3         (A) "CORRECTIVE ACTION", "OPERATOR", "OWNER", "RELEASE",

 4    "SITE", AND "UNDERGROUND STORAGE TANK SYSTEM" HAVE THE MEANINGS

 5    ASCRIBED TO THOSE TERMS IN PART 213.

 6         (B) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL

 7    QUALITY.

 8         (C) "ELIGIBLE PARTICIPANT" MEANS A PERSON WHO MEETS THE

 9    REQUIREMENTS OF SECTION 21603(1)(A) TO (F).

10         SEC. 21602.  (1) THE DEPARTMENT SHALL ESTABLISH A CONTRACT-

11    ING ASSISTANCE PROGRAM TO ASSIST OWNERS AND OPERATORS IN CON-

12    TRACTING FOR PRELIMINARY ASSESSMENT AND RESPONSE ACTIVITIES.

13    PURSUANT TO PROCEDURES DESCRIBED IN THE MANAGEMENT AND BUDGET

14    ACT, 1984 PA 431, MCL 18.1101 TO 18.1594, THE DEPARTMENT SHALL

15    PREPARE A SOLICITATION FOR BIDS FOR THE PERFORMANCE OF PRELIMI-

16    NARY ASSESSMENT AND RESPONSE ACTIVITIES AT LOCATIONS OF UNDER-

17    GROUND STORAGE TANK SYSTEMS WITHIN REGIONS AS IDENTIFIED BY THE

18    DEPARTMENT.  THE BID MAY PROVIDE FOR DIFFERENT AMOUNTS BASED ON

19    THE NUMBER OF UNDERGROUND STORAGE TANKS AT THE LOCATION.  THE

20    DEPARTMENT SHALL IDENTIFY 6 REGIONS WITHIN THE STATE FOR PURPOSES

21    OF THE CONTRACTING ASSISTANCE PROGRAM UNDER THIS SECTION.  ONLY A

22    PERSON WHO IS ON THE LIST OF QUALIFIED UNDERGROUND STORAGE TANK

23    CONSULTANTS PREPARED UNDER SECTION 21542 IS ELIGIBLE TO SUBMIT A

24    BID IN RESPONSE TO THE SOLICITATION FOR BIDS PREPARED UNDER THIS

25    SECTION.

26         (2) THE DEPARTMENT SHALL SELECT A BID USING THE PROCEDURES

27    AND CRITERIA DESCRIBED IN THE MANAGEMENT AND BUDGET ACT, 1984 PA



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 1    431, MCL 18.1101 TO 18.1594.  THE BID SELECTED ESTABLISHES THE

 2    BID PRICE FOR PERFORMANCE OF PRELIMINARY ASSESSMENT AND RESPONSE

 3    ACTIVITIES IN THAT REGION.

 4         (3) FOLLOWING SELECTION OF A BID, ANY CONSULTANT WHO SUBMIT-

 5    TED A BID MAY ALSO PERFORM THE PRELIMINARY ASSESSMENT AND

 6    RESPONSE ACTIVITIES FOR THE BID PRICE.  A CONSULTANT WHO WISHES

 7    TO BE PLACED ON A LIST OF CONSULTANTS WITHIN THE REGION WHO HAVE

 8    AGREED TO CONDUCT THE PRELIMINARY ASSESSMENT AND RESPONSE ACTIVI-

 9    TIES UNDER THIS SECTION FOR THE BID PRICE SHALL NOTIFY THE

10    DEPARTMENT IN WRITING, WITHIN 30 DAYS AFTER SELECTION OF THE BID,

11    REQUESTING TO BE PLACED ON THE LIST.  A CONSULTANT WHO IS ON THE

12    LIST OF CONSULTANTS WITHIN THAT REGION SHALL NOT REFUSE TO ENTER

13    INTO A CONTRACT WITH AN OWNER OR OPERATOR UNDER THIS SECTION

14    UNLESS THE CONSULTANT IS UNABLE TO CONDUCT THE ACTIVITIES WITHIN

15    A REASONABLE TIME PERIOD.

16         (4) THE DEPARTMENT SHALL NOTIFY ALL OWNERS AND OPERATORS IN

17    EACH REGION OF THE LIST OF CONSULTANTS WHO HAVE AGREED TO PERFORM

18    THE PRELIMINARY ASSESSMENT AND RESPONSE ACTIVITIES FOR THE BID

19    PRICE.

20         (5) AN OWNER OR OPERATOR WHO WISHES TO PARTICIPATE IN THE

21    CONTRACTING ASSISTANCE PROGRAM UNDER THIS PART SHALL CONTRACT,

22    FOR THE BID PRICE, WITH A CONSULTANT WHO IS ON THE LIST OF CON-

23    SULTANTS FOR THAT REGION PROVIDED BY THE DEPARTMENT.  WITHIN 30

24    DAYS OF CONTRACTING WITH A CONSULTANT UNDER THIS SECTION, THE

25    OWNER OR OPERATOR SHALL PROVIDE THE DEPARTMENT WITH EVIDENCE OF

26    THE CONTRACT.





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 1         (6) AS USED IN THIS SECTION, "PRELIMINARY ASSESSMENT AND

 2    RESPONSE ACTIVITIES" MEANS REMOVAL OF THE UNDERGROUND STORAGE

 3    TANK SYSTEM AT A LOCATION, CONDUCTING INITIAL RESPONSE ACTIONS

 4    UNDER SECTION 21307, AND CONDUCTING SITE CHARACTERIZATION AND

 5    PREPARING AN INITIAL ASSESSMENT REPORT UNDER SECTION 21308A.

 6         SEC. 21603.  (1) THE DEPARTMENT SHALL ESTABLISH A CORRECTIVE

 7    ACTION ASSISTANCE PROGRAM FOR OWNERS AND OPERATORS.  AN OWNER OR

 8    OPERATOR IS ELIGIBLE TO PARTICIPATE IN THIS PROGRAM IF HE OR SHE

 9    MEETS ALL OF THE FOLLOWING REQUIREMENTS:

10         (A) THE OWNER OR OPERATOR SATISFIES THE REQUIREMENTS OF SEC-

11    TION 21510(1)(A), (B), (C), (D), AND (F), (2), AND (4).

12         (B) THE OWNER OR OPERATOR PARTICIPATED IN THE CONTRACTING

13    ASSISTANCE PROGRAM UNDER SECTION 21602 OR HAS COMPLETED AN INI-

14    TIAL ASSESSMENT REPORT UNDER SECTION 21308A.

15         (C) THE UNDERGROUND STORAGE TANK SYSTEM FOR WHICH ASSISTANCE

16    IS REQUESTED WAS REGISTERED UNDER PART 211 ON OR BEFORE JANUARY

17    1, 1993 AND HAS BEEN REGISTERED SINCE JANUARY 1, 1993.

18         (D) THE OWNER OR OPERATOR SUBMITS EVIDENCE OF HIS OR HER

19    ABILITY TO PAY THE COPAY AMOUNT PROVIDED IN SECTION 21604.

20         (E) THE OWNER OR OPERATOR SUBMITS A NOTIFICATION OF ELIGI-

21    BILITY FORM TO THE DEPARTMENT DOCUMENTING HIS OR HER COMPLIANCE

22    WITH THIS SECTION.

23         (F) THE OWNER'S OR OPERATOR'S ELIGIBILITY HAS NOT BEEN DIS-

24    CONTINUED PURSUANT TO SECTION 21604.

25         (2) THE DEPARTMENT SHALL DEVELOP AND MAKE AVAILABLE A 1-PAGE

26    NOTIFICATION OF ELIGIBILITY FORM FOR USE IN MEETING THE

27    REQUIREMENT OF SUBSECTION (1)(E).



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 1         (3) AN ELIGIBLE PARTICIPANT MAY WITHDRAW FROM PARTICIPATION

 2    IN THE CORRECTIVE ACTION ASSISTANCE PROGRAM UNDER THIS SECTION BY

 3    NOTIFYING THE DEPARTMENT IN WRITING.

 4         SEC. 21604.  AN ELIGIBLE PARTICIPANT IS RESPONSIBLE FOR A

 5    COPAY AMOUNT OF $25,000.00 OR $8,500.00 PER UNDERGROUND STORAGE

 6    TANK, WHICHEVER IS GREATER, MINUS THE BID PRICE FOR THE REGION IN

 7    WHICH THE UNDERGROUND STORAGE TANK SYSTEM IS LOCATED AS PROVIDED

 8    FOR IN SECTION 21602.  ADDITIONALLY, AFTER THE AMOUNT IS PAID,

 9    THE OWNER OR OPERATOR WHO OWNS 1 TO 20 UNDERGROUND STORAGE TANKS,

10    REGARDLESS OF THEIR LOCATION, SHALL PAY A COPAY OF 5% OF THE

11    COSTS OF CORRECTIVE ACTIONS PERFORMED AT THE SITE.  THE OWNER OR

12    OPERATOR OF MORE THAN 20 UNDERGROUND STORAGE TANKS SHALL PAY A

13    COPAY OF 20% OF THE COSTS OF CORRECTIVE ACTIONS PERFORMED AT THE

14    SITE.  THE DEPARTMENT SHALL BILL OWNERS AND OPERATORS ON A

15    MONTHLY BASIS.  IF AN OWNER OR OPERATOR FAILS TO PAY A COPAY

16    AMOUNT WITHIN 30 DAYS AFTER THE DEPARTMENT MAILED THE BILL, THE

17    DEPARTMENT MAY DISCONTINUE THE OWNER'S OR OPERATOR'S ELIGIBILITY

18    UNDER THIS PART.

19         SEC. 21605.  (1) WITH MONEY AVAILABLE IN THE EMERGENCY

20    RESPONSE FUND CREATED IN SECTION 21507, THE DEPARTMENT SHALL CON-

21    TRACT FOR THE PERFORMANCE OF CORRECTIVE ACTIONS AT SITES OWNED OR

22    OPERATED BY ELIGIBLE PARTICIPANTS.  THE DEPARTMENT SHALL CONTRACT

23    FOR THE PERFORMANCE OF CORRECTIVE ACTIONS AT SITES BASED UPON THE

24    CLASSIFICATION OF THE SITE UNDER SECTION 21314A.  THE DEPARTMENT

25    SHALL ENTER INTO CONTRACTS UNDER THIS SECTION IN ACCORDANCE WITH

26    THE MANAGEMENT AND BUDGET ACT, 1984 PA 431, MCL 18.1101 TO





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 1    18.1594.  THE DEPARTMENT MAY CONTRACT FOR THE PERFORMANCE OF

 2    CORRECTIVE ACTIONS AT 1 OR MORE SITES.

 3         (2) THE EXPENDITURE OF MONEY TO PERFORM CORRECTIVE ACTIONS

 4    UNDER THIS SECTION DOES NOT AFFECT THE LIABILITY OF THE OWNER OR

 5    OPERATOR.  HOWEVER, THE OWNER IS NOT RESPONSIBLE FOR THE REPAY-

 6    MENT OF MONEY EXPENDED ON CONTRACTS ISSUED UNDER THIS SECTION.

 7         SEC. 21606.  THE DEPARTMENT SHALL NOT CONTRACT FOR THE PER-

 8    FORMANCE OF ENVIRONMENTAL ASSESSMENTS OR CORRECTIVE ACTIONS FOR

 9    RELEASES THAT OCCUR AFTER DECEMBER 22, 1998.






































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