SENATE BILL No. 245







February 21, 2001, Introduced by Senators BENNETT, NORTH, GOUGEON,

JOHNSON, MC MANUS and GAST and referred to the Committee on Appropriations.





EXECUTIVE BUDGET BILL



A bill to make appropriations for the department of environmental quality for the fiscal year ending September 30, 2002; to provide for the expenditure of those appropriations; to create funds and accounts; to require reports; to prescribe certain powers and duties of certain state agencies and officials; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by the various state agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this bill, the

amounts listed in this part are appropriated for the department of environmental quality for the fiscal year ending September 30, 2002, from the funds indicated in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF ENVIRONMENTAL QUALITY

APPROPRIATION SUMMARY:

Full-time equated unclassified positions 6.0

Full-time equated classified positions 1,635.7

GROSS APPROPRIATION $ 416,556,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers 17,809,000

ADJUSTED GROSS APPROPRIATION $ 398,747,600

Federal revenues:

Total federal revenues 130,777,500

Special revenue funds:

Total local revenues 1,133,400

Total private revenues 433,700

Total other state restricted revenues 163,227,700

State general fund/general purpose $ 103,175,300

FUND SOURCE SUMMARY:

GROSS APPROPRIATIONS:

Interdepartmental grant revenues:

IDG from MDOT, Michigan transportation fund 885,300

IDG from MDOT, state aeronautics fund 40,000

IDG-MDSP 625,800

IDG-MDCH, local public health operations 10,472,500

IDT, interdivisional charges 5,785,400

Total interdepartmental grants and

intradepartmental transfers 17,809,000

ADJUSTED GROSS APPROPRIATION $ 398,747,600

Federal revenues:

DOC-NOAA, federal 3,047,700

DOD, federal 850,600

DOI, federal 51,300

DOI-USGS, federal 101,300

DOI-OSMRE, federal 303,700

EPA, federal 26,609,900

EPA-GWDW 4,715,600

EPA, radon 309,100

EPA, superfund 7,056,400

EPA-UST 267,600

EPA-LUST trust 2,067,400

FEMA, federal 396,900

Federal revenues 85,000,000

Total federal revenues 130,777,500

Special revenues funds:

Local funds 1,133,400

Total local revenues 1,133,400

Private funds 433,700

Total private revenues 433,700

Aboveground storage tank fees 714,500

Clean Michigan initiative - administration 2,428,400

Clean Michigan initiative - clean water fund 2,547,500

Community pollution prevention fund 250,000

Hazardous waste facility closure revenue 1,000,000

Solid waste facility closure revenue 1,000,000

Air emission fees 11,903,300

CESARS service fee 26,000

Cleanup and redevelopment fund 8,200,000

Drinking water revolving fund 6,023,600

Environmental response fund 8,983,600

Environmental education fund 182,700

Environmental pollution prevention 194,600

Environmental protection fund 6,000,000

Environmental training revenue 293,400

Fees and collections 800,800

Great Lakes protection fund 2,000,000

Hazardous materials transportation permit fund 86,900

Land and water permit fees 3,072,100

Landfill maintenance trust fund 46,500

Medical waste fees 434,100

Metallic mining surveillance fee revenue 67,500

Mineral well regulatory fee revenue 213,200

Michigan underground storage tank financial

assurance fund 62,411,200

Oil and gas regulatory fund 9,621,100

Orphan well fund 1,317,300

Publication revenue 102,000

Public utility assessments 781,900

Public water supply fees 4,337,400

Revitalization revolving loan fund 1,000,000

Settlement funds 3,383,200

Saginaw Bay and River restoration revenue 152,800

Sand extraction fee 187,800

Scrap tire regulatory fund 1,806,000

Septage waste license 1,750,000

Sewage sludge land application fee 742,400

Solid waste program fees 1,301,700

Stormwater permit fees 1,350,600

Submerged log recovery fund 100,000

Underground storage tank fees 5,206,100

Water analysis fees 2,469,900

Waste reduction fee revenue 5,582,500

Water pollution control revolving fund 2,924,700

Wastewater operator training fees 167,000

Water use reporting fees 63,400

Total other state restricted revenues 163,227,700

State general fund/general purpose $ 103,175,300

Sec. 102. EXECUTIVE

Full-time equated unclassified positions 6.0

Full-time equated classified positions 15.0

Unclassified salaries--6.0 FTE positions $ 495,100 Executive direction--8.0 FTE positions 1,089,700

Office of the Great Lakes--7.0 FTE positions 901,800 GROSS APPROPRIATION $ 2,486,600 Appropriated from:

Federal revenues:

EPA, federal 223,200

DOI, federal 51,300

Special revenue funds:

Environmental response fund 42,600

Environmental education fund 182,700

Great Lakes protection fund 100,000

Oil and gas regulatory revenue 88,500

Settlement funds 208,400

State general fund/general purpose $ 1,589,900

Sec. 103. DEPARTMENT SUPPORT SERVICES

Full-time equated classified positions 96.0

Financial support services--32.0 FTE positions $ 1,759,100 Field operations support--20.0 FTE positions 1,481,200 Automated data processing--21.0 FTE positions 6,236,900 Office of special environmental projects--6.0

FTE positions 603,800

Personnel--13.0 FTE positions 810,000

Administrative hearings--4.0 FTE positions 411,800

Building occupancy charges 7,213,200

Rent-privately owned property 2,365,900

GROSS APPROPRIATION $ 20,881,900 Appropriated from:

Interdepartmental grant revenues:

IDT, interdivisional charges 5,785,400

Federal revenues:

DOD, federal 1,000

EPA, federal 300,000

EPA, superfund 56,400

Special revenue funds:

Aboveground storage tank fee revenue 24,900

Clean Michigan initiative fund -

administration 159,400

Air emission fees 377,600

Environmental response fund 1,296,100

Environmental pollution prevention fund 57,000

Fees and collections 85,600

Land and water permit fees 103,500

Medical waste fees 31,600

Michigan underground storage tank financial

assurance fund 323,900

Oil and gas regulatory revenue 743,300

Public utility assessment 12,000

Public water supply fees 454,100

Scrap tire regulatory fund 84,500

Settlement funds 183,900

Solid waste program fees 63,000

Stormwater permit fees 48,300

Waste reduction revenue 53,500

Water analysis fees 157,900

Water pollution control revolving fund 83,600

Water use reporting fees 7,100

Underground storage tank fees 196,400

State general fund/general purpose $ 10,191,900

Sec. 104. GEOLOGICAL SURVEY

Full-time equated classified positions 74.5

Services to oil and gas programs--65.0 FTE

positions $ 8,962,100 Well plugging - orphan wells--2.5 FTE positions 1,317,300 Coal and sand dune management--3.0 FTE

positions 592,800

Mineral wells management--3.0 FTE positions 213,200

Metallic mining reclamation program--1.0 FTE

position 67,500

GROSS APPROPRIATION $ 11,152,900 Appropriated from:

Federal revenues:

DOI-USGS, federal 101,300

DOI-OSMRE, federal 303,700

Special revenue funds:

Environmental response fund 75,000 Metallic mining surveillance fee revenue 67,500

Mineral well regulatory fee revenue 213,200

Orphan well fund 1,317,300

Oil and gas regulatory revenue 8,653,000

Publication revenue 102,000

Sand extraction fee 187,800

State general fund/general purpose $ 132,100

Sec. 105. LAND AND WATER MANAGEMENT

Full-time equated classified positions 156.0

Land and water program direction--14.0 FTE

positions $ 1,182,200 Field permitting and project assistance--85.0 FTE

positions 7,082,500

Water management--26.0 FTE positions 2,877,500

Great Lakes shorelands--31.0 FTE positions 3,314,800

Submerged log recovery 100,000

GROSS APPROPRIATION $ 14,557,000 Appropriated from:

Interdepartmental grant revenues:

IDG, Michigan transportation fund 885,300

IDG, state aeronautics fund 40,000

Federal revenues:

EPA, federal 681,800

DOC-NOAA, federal 1,547,700

FEMA, federal 396,900

Special revenue funds:

Land and water permit fees 2,968,600

Submerged log recovery fund 100,000

State general fund/general purpose $ 7,936,700 Sec. 106. AIR QUALITY

Full-time equated classified positions 216.5

Air quality programs--216.5 FTE positions $ 19,167,100 GROSS APPROPRIATION $ 19,167,100 Appropriated from:

Federal revenues:

EPA, federal 3,243,900

Special revenue funds:

Air emissions fees 9,212,900

Environmental response fund 88,400 State general fund/general purpose $ 6,621,900 Sec. 107. SURFACE WATER QUALITY

Full-time equated classified positions 214.5

Compliance and permits--112.0 FTE positions $ 10,174,500

Surface water surveillance program--36.5 FTE

positions 7,755,500

Watershed management and non-point source--42.0

FTE positions 4,602,800

Fish contaminant monitoring contracts 321,000

Sewage sludge land application program--9.5 FTE

positions 742,400

Stormwater discharge program--14.5 FTE positions 1,222,900

GROSS APPROPRIATION $ 24,819,100 Appropriated from:

Federal revenues:

EPA, federal 7,172,300

Special revenue funds:

Local funds 1,133,400

CESARS service fee 26,000

Clean Michigan initiative fund -

administration 553,600

Clean Michigan initiative - clean water fund 2,547,500

Environmental response fund 146,100

Saginaw Bay and River restoration revenue 152,800

Septage waste license fees 225,000

Sewage sludge land application fee 742,400

State water pollution control revolving fund 584,100

Stormwater permit fees 1,216,500

State general fund/general purpose $ 10,319,400

Sec. 108. DRINKING WATER PROTECTION AND RADIOLOGICAL HEALTH

Full-time equated classified positions 215.7

Environmental health--34.0 FTE positions $ 3,725,600

Laboratory services administration--70.0 FTE

positions 6,275,100

Drinking water--93.2 FTE positions 12,940,900 Radiological protection--18.5 FTE positions 1,689,700

GROSS APPROPRIATION $ 24,631,300 Appropriated from:

Interdepartmental grant revenues:

IDG-MDSP 625,800

Federal revenues:

EPA, federal 890,600

EPA-GWDW 4,056,000

EPA, radon 219,100

Special revenue funds:

Drinking water revolving fund 3,430,500

Medical waste fees 402,500 Public water supply fees 2,483,300 Settlement funds 283,100 Water analysis fees 2,312,000 Water use reporting fees 56,300

Fees and collections 715,200

State general fund/general purpose $ 9,156,900

Sec. 109. LOW LEVEL RADIOACTIVE WASTE AUTHORITY

Full-time equated classified positions 2.0

Low level radioactive waste authority--2.0 FTE

positions $ 769,900 GROSS APPROPRIATION $ 769,900

Appropriated from:

Special revenue funds:

Public utility assessments 769,900 State general fund/general purpose $ 0

Sec. 110. ENVIRONMENTAL RESPONSE

Full-time equated classified positions 257.0

Environmental cleanup and redevelopment

program $ 16,352,600

Contaminated site investigations, cleanup, and

revitalization--206.0 FTE positions 16,609,100

State cleanup (Part 201 of Public Act 451 of 1994) 3,397,700

Emergency cleanup action 2,000,000

Federal cleanup project management--51.0 FTE

positions 5,420,300

Revitalization revolving loan fund 7,000,000

Superfund cleanup 7,250,000

GROSS APPROPRIATION $ 58,029,700

Appropriated from:

Federal revenues:

DOD, federal 849,600

EPA, federal 2,783,400

EPA, superfund 7,000,000

Special revenue funds:

Private funds 133,700

Clean Michigan initiative fund -

administration 1,027,200

Cleanup and redevelopment fund 5,234,000

Environmental response fund 5,980,100

Environmental protection fund 6,000,000

Landfill maintenance trust fund 46,500

Revitalization revolving loan fund 1,000,000

Settlement funds 2,640,700

State general fund/general purpose $ 25,334,500

Sec. 111. STORAGE TANKS

Full-time equated classified positions 112.5

Michigan underground storage tank financial

assurance program--36.5 FTE positions $ 61,976,800 Underground storage tank program--39.0 FTE

positions 5,482,300

Above ground storage tank program--9.0 FTE

positions 689,600

Leaking underground storage tank cleanup

program 5,966,000

Emergency cleanup actions 2,000,000

Leaking underground storage tank program--28.0 FTE

positions 4,408,700

GROSS APPROPRIATION $ 80,523,400

Appropriated from:

Federal revenues:

EPA-LUST trust 2,067,400

EPA-UST 267,600

Special revenue funds:

Above ground storage tank fees 689,600

Clean Michigan initiative fund -

administration 609,100

Cleanup and redevelopment fund 2,966,000

Environmental response fund 1,095,300 Michigan underground storage tank financial

assurance fund 61,976,800

Underground storage tank fees 5,009,700

State general fund/general purpose $ 5,841,900 Sec. 112. WASTE MANAGEMENT

Full-time equated classified positions 151.0

Administration and technical support--20.0 FTE

positions $ 1,587,600

Compliance and enforcement--72.0 FTE positions 5,250,500 Hazardous waste permits--28.0 FTE positions 2,535,800 Groundwater permits--18.0 FTE positions 1,261,200 Solid waste program--13.0 FTE positions 1,401,600 Hazardous waste program support 515,000 Hazardous waste disposal facility closures 1,000,000 Solid waste disposal facility closures 1,000,000

GROSS APPROPRIATION $ 14,551,700 Appropriated from:

Federal revenues:

EPA, federal 2,903,000

Special revenue funds:

Hazardous waste facility closure revenue 1,000,000

Hazardous materials transportation permit fund 86,900

Solid waste facility closure revenue 1,000,000

Environmental pollution prevention fund 137,600

Environmental response fund 260,000

Scrap tire regulatory fund 964,100

Solid waste program fees 1,238,700

Waste reduction fee 1,211,000

State general fund/general purpose $ 5,750,400 Sec. 113. ENVIRONMENTAL ASSISTANCE

Full-time equated classified positions 103.0

Municipal assistance--33.5 FTE positions $ 3,060,200

Pollution prevention--37.0 FTE positions 3,368,700

Low-income community wastewater assistance 96,000

Environmental services--12.0 FTE positions 1,637,200

Pollution prevention outreach 300,000

Technical assistance--20.5 FTE positions 3,146,900 GROSS APPROPRIATION $ 11,609,000 Appropriated from:

Federal revenues:

EPA, federal 783,300

EPA-GWDW 659,600

Special revenue funds:

Private funds 300,000

Air emissions fees 648,000

Clean Michigan initiative fund -

administration 79,100

Settlement funds 67,100

Drinking water revolving fund 1,263,100

Environmental training revenue 293,400

State water pollution control revolving fund 2,257,000

Stormwater permit fees 85,800

Waste reduction fee revenue 4,318,000

Wastewater operator training fees 167,000

State general fund/general purpose $ 687,600

Sec. 114. CRIMINAL INVESTIGATIONS

Full-time equated classified positions 22.0

Environmental investigations--22.0 FTE

positions $ 1,925,400 GROSS APPROPRIATION $ 1,925,400 Appropriated from:

Federal revenues:

EPA, federal 128,400

Special revenue funds:

MUSTFA fund 110,500

Oil and gas regulatory fund 136,300

Scrap tire regulatory fund 57,400

State general fund/general purpose $ 1,492,800

Sec. 115. GRANTS

Grants to counties-air pollution $ 2,854,900

Water pollution control and drinking water

revolving fund 102,353,500

Noncommunity water grants 1,400,000

Land resource program grants 1,800,000

Federal - nonpoint source water pollution

grants 6,500,000

Federal - Great Lakes remedial action plan

grants 700,000

Great Lakes research and protection grants 1,900,000

Pollution prevention local grants 250,000

Radon grants 135,000

Septage waste compliance grants 1,525,000

Scrap tire grants 700,000

Drinking water revolving fund implementation 1,330,000

Local health department operations 10,472,500

Volunteer river stream, and creek cleanup 50,000

GROSS APPROPRIATION $ 131,970,900 Appropriated from:

Interdepartmental grant revenues:

IDG-MDCH, local public health operations 10,472,500

Federal revenues:

DOC, federal 1,500,000

EPA, federal 7,500,000

EPA, radon 90,000

Federal revenues 85,000,000

Special revenue funds:

Air emissions fees 1,664,800

Community pollution prevention fund 250,000

Drinking water revolving fund 1,330,000

Great Lakes protection fund 1,900,000

Public water supply fees 1,400,000

Scrap tire regulatory fund 700,000

Septage waste license fees 1,525,000

State general fund/general purpose $ 18,638,600

Sec. 116. BUDGETARY SAVINGS

Budgetary savings $ (519,300)

GROSS APPROPRIATION $ (519,300)

Appropriated from:

State general fund/general purpose $ (519,300)

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2001-2002 is $266,403,000.00 and state spending from state resources to be paid to local units of government for fiscal year 2001-2002 is $7,944,900.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF ENVIRONMENTAL QUALITY

GRANTS

Grants to counties - air pollution $ 2,854,900

Septage waste compliance program 1,525,000

Scrap tire grants 700,000

Noncommunity water grants 1,400,000

Radon grants 135,000

Drinking water grants 1,330,000

TOTAL $ 7,944,900

Sec. 202. The appropriations authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this bill:

(a) "CESARS" means chemical evaluation search and retrieval system.

(b) "CMI" means clean Michigan initiative.

(c) "Department" means the department of environmental quality.

(d) "DOC" means the United States department of commerce.

(e) "DOC-NOAA" means the DOC national oceanic and atmospheric administration.

(f) "DOD" means the United States department of defense.

(g) "DOE" means the United States department of energy.

(h) "DOI" means the United States department of interior.

(i) "DOI-OSMRE" means the DOI office of surface mine reclamation.

(j) "DOI-USGS" means the DOI United States geological survey.

(k) "EPA" means the United States environmental protection agency.

(l) "EPA-GWDW" means the EPA groundwater drinking water.

(m) "EPA-LUST trust" means the EPA leaking underground storage tank trust fund.

(n) "EPA, radon" means the EPA radon grants.

(o) "EPA-UST" means the EPA underground storage tank.

(p) "FEMA" means the federal emergency management agency.

(q) "FTE" means full-time equated.

(r) "GIS" means geographic information system.

(s) "IDG" means interdepartmental grant.

(t) "IDT" means intradepartmental transfer.

(u) "MDCH" means the Michigan department of community health.

(v) "MDOT" means the Michigan department of transportation.

(w) "MDSP" means the Michigan department of state police.

(x) "MI" means Michigan.

(y) "MUSTFA" means the Michigan underground storage tank financial assurance fund.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $30,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 206. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site. Quarterly, the department shall provide to the appropriations subcommittee members, state budget office, and the fiscal agencies an electronic and paper copy listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, if any.

Sec. 207. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department.

(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Sec. 208. (1) The negative appropriation for budgetary savings in part 1 shall be satisfied by savings from the hiring freeze imposed in Section 207 and, if necessary, by other savings identified by the department director and approved by the state budget director.

(2) Appropriation authorizations shall be adjusted after the approval of transfers by the legislature pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 209. (1) From funds appropriated under part 1, the department shall prepare a report that lists all of the following regarding grant or loan or grant and loan programs administered by the department for the fiscal year ending on September 30, 2002:

(a) The name of each program.

(b) The goals of the program, the criteria, eligibility, process, filing fees, nominating procedures, and deadlines for each program.

(c) The maximum and minimum grant and loan available and whether there is a match requirement for each program.

(d) The amount of any required match, and whether in-kind contributions may be used as part or all of a required match.

(e) Information pertaining to the application process, timeline for each program, and the contact people within the department.

(f) The source of funds for each program, including the citation of pertinent authorizing acts.

(g) Information regarding plans for the next fiscal year for the phaseout, expansion, or changes for each program.

(h) A listing of all recipients of grants or loans awarded by the department by type and amount of grant or loan.

(2) The reports required under this section shall be submitted to the senate and house of representatives appropriations committees and senate and house fiscal agencies by January 1, 2002.

Sec. 210. (1) The department shall report all of the following information relative to allocations made in part 1 for the environmental cleanup and redevelopment program, state cleanup, emergency actions, superfund cleanup, the revitalization revolving loan program, the brownfield grants and loans program, the leaking underground storage tank cleanup program, the contaminated lake and river sediments cleanup program, and the environmental protection bond

projects under section 19508(7) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19508, to the state budget director, the senate and house of representatives appropriations subcommittees on environmental quality, and the senate and house fiscal agencies:

(a) The name and location of the site for which an allocation is made.

(b) The nature of the problem encountered at the site.

(c) A brief description of how the problem will be resolved if the allocation is made for a response activity.

(d) The estimated date that site closure activities will be completed.

(e) The amount of the allocation, or the anticipated financing for the site.

(f) A summary of the sites and the total amount of funds expended at the sites at the conclusion of the fiscal year.

(g) The number of sites that would qualify as brownfields that were redeveloped.

(2) The report prepared under subsection (1) shall also include all of the following:

(a) The status of all state-owned facilities that are on the list compiled under part 201 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20101 to 324.20142.

(b) The report shall include the total amount of funds expended during the fiscal year and the total amount of funds awaiting expenditure.

(c) The total amount of bonds issued for the environmental protection bond program pursuant to part 193 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19301 to 324.19306, and bonds issued pursuant to the clean Michigan initiative act, 1998 PA 284, MCL 324.95101 to 324.95108.

(3) The report shall be made available by March 31 of each year.

SURFACE WATER QUALITY

Sec. 301. Of the funds appropriated in part 1 for surface water surveillance, a minimum of $250,000.00 shall be designated for grants to local organizations for water quality monitoring activities.

ENVIRONMENTAL RESPONSE

Sec. 401. The unexpended portion of the appropriation in part 1 for the state cleanup program, environmental cleanup and redevelopment program, emergency cleanup action, contaminated site investigations, cleanup and revitalization, revitalization revolving loan program, and superfund cleanup projects is considered work project appropriations and any unencumbered or unallotted funds are carried forward into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried forward is to provide contaminated site cleanup.

(b) The projects will be accomplished by contract.

(c) The total estimated cost of all projects is identified in each line-item appropriation.

(d) The tentative completion date is September 30, 2006.

Sec. 402. Of the funds appropriated in part 1 as state match for the superfund cleanup program, an amount not to exceed $250,000.00 shall be expended as state match for the hazardous substance research center.

STORAGE TANKS

Sec. 501. (1) The funds appropriated in part 1 from the Michigan underground storage tank financial assurance fund for the purpose of carrying out the duties and responsibilities as specified in part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551, are considered work project appropriations and any unencumbered funds are carried forward into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried forward is to carry out the responsibilities of part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551.

(b) The projects will be accomplished by contract and state employees.

(c) The total estimated cost is identified in a line-item appropriation.

(d) The tentative completion date is September 30, 2006.

(2) The Michigan underground storage tank financial assurance policy board shall allocate the amount of the underground storage tank financial assurance fund to be distributed to the department. If the amount recommended by the board is less than that appropriated in section 112, expenditures shall be adjusted accordingly.

(3) Included in the amounts appropriated in part 1 from the Michigan underground storage tank financial assurance fund are amounts sufficient to pay debt service costs on the bonds or notes issued pursuant to part 215 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.21501 to 324.21551.

Sec. 502. The department shall report to the state budget director, the senate and house of representatives appropriations subcommittees on environmental quality, and the senate and house fiscal agencies no later than October 31, 2002 on the Michigan underground storage tank financial assurance fund. The report shall include the fund balance, estimate of available revenues, number and dollar value of claims processed through September 30, 2001, and

total estimated claims liability through December 22, 2003.

Sec. 503. The unexpended portion of the appropriation in part 1 for the leaking underground storage tank cleanup program is considered work project appropriations and any unencumbered or unallotted funds are carried over into the succeeding fiscal year. The following is in compliance with section 451a(1) of the management and budget act, 1984

PA 431, MCL 18.1451a:

(a) The purpose of the projects to be carried over is to provide for redevelopment and contaminated site cleanup.

(b) These projects will be accomplished by contract.

(c) The total estimated costs of all projects is identified in each line-item appropriation.

(d) The tentative completion date for these projects is September 30, 2006.

ENVIRONMENTAL ASSISTANCE

Sec. 601. The appropriation in part 1 for low-income community wastewater assistance shall be provided to the Michigan community action agency association. This appropriation enables the association to maintain rural community assistance program services to all Michigan counties.

GRANTS

Sec. 701. If a certified health department does not exist in a city, county, or district or does not fulfill its responsibilities under part 117 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11701 to 324.11719, then the department may spend funds appropriated in part 1 under the septage waste compliance program in accordance with section 11716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11716.

Sec. 702. Of the amount of money appropriated in part 1 for scrap tire grants, $100,000.00 shall be available for grants to communities to cover scrap tire fire suppression costs, provided owner liability bonds and other available funding sources have been exhausted.