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HB-6047, As Passed Senate, June 29, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6047

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

(MCL 324.101 to 324.90106) by adding sections 21553, 21554, 21555,

21556, and 21557.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 21553. The department shall establish a refined petroleum

product cleanup initial program to conduct corrective actions

associated with releases from petroleum underground storage tank

systems.

Sec. 21554. The department shall establish a temporary

reimbursement program to promote progress toward site closure of

releases from petroleum underground storage tank systems by

providing financial incentives for eligible persons to conduct

corrective actions for those releases.

Sec. 21555. The department shall administer the temporary

reimbursement program and process precertification applications and

subsequent work invoices submitted by eligible persons in

accordance with this part. Beginning on the effective date of the

amendatory act that added this section, the department shall

commence implementation of the temporary reimbursement program as

provided in sections 21556 and 21557. The initiation date of the

first round precertification application period shall occur not

later than 120 days after the effective date of the amendatory act

that added this section. The department shall provide notice of the

initiation date to applicable trade associations and shall provide

notice through an electronic distribution list to interested

persons and the department's website. Not later than 210 days after

the initiation date of the first round, the department shall

determine whether sufficient funding is available to implement a

second round temporary reimbursement program pursuant to section

21557. If the department determines that sufficient funds are

available, the department shall provide notice of the initiation

date of the second round precertification application period in the

same manner as the first round notification process. The initiation

date of the second round precertification application period shall

occur not later than 60 days after the department determines

funding is available for the second round of the temporary

reimbursement program.

Sec. 21556. (1) To be considered for eligibility for

reimbursement under the first round of the temporary reimbursement

program, a person shall submit to the department a completed first

round precertification application on a form provided by the

department. A person may submit more than 1 first round

precertification application if he or she possesses more than 1

approved claim for releases that meet the eligibility requirements

in subsection (3)(a) to (d).

(2) To be considered for approval, first round

precertification applications shall be received by the department

at or before 5 p.m. on the one hundred eightieth day following the

department's initiation date of the application period.

(3) In order for a person to be eligible for reimbursement

under the first round of the temporary reimbursement program, the

completed first round precertification application shall

demonstrate all of the following:

(a) That the person was the owner or operator who submitted

and had an approved claim or that the person received a valid

assignment of an approved claim in accordance with section 21516.

(b) That the release for which the approved claim was obtained

has not been closed pursuant to part 213.

caused the site to be classified as a class 1 or class 2 site,

based on the most recently submitted data or reports prior to May

9, 2005, or as otherwise determined by the department prior to May

9, 2005.

(d) For underground storage tank systems that are operating at

the location from which the release occurred, that the owner or

operator, if he or she is the applicant, is currently in compliance

with the registration and fee requirements of part 211.

(4) All applications for the temporary reimbursement program

shall be considered on a first-come, first-served basis. If the

first round precertification application received by the department

successfully demonstrates eligibility in accordance with

subsections (2) and (3), the department shall approve the first

round precertification application. Not more than 900

precertification applications shall be approved by the department.

(5) An eligible person shall have 540 days after the date of

approval of the precertification application to perform corrective

actions pursuant to part 213 at the site of release in accordance

with section 21558.

(6) Only corrective action costs incurred after the date of

approval of the precertification application and up to the five

hundred fortieth day following precertification application

approval shall be considered for reimbursement by the department.

Corrective action costs incurred after the five hundred fortieth

day are not eligible for reimbursement.

(7) An eligible person may receive up to $50,000.00 or such

additional amount as may be made available pursuant to section

21557(8), for approved corrective action costs for each approved

precertification application.

(8) An eligible person shall submit all work invoices for

which reimbursement is being sought to the department within 600

days following the precertification application approval date. An

eligible person shall not submit a request for reimbursement that

totals less than $5,000.00 for the costs of corrective action,

except for the last reimbursement request.

(9) Eligible persons shall receive reimbursement of 80% of the

amount of each approved work invoice until the maximum

reimbursement amount is reached. The remaining 20% shall be

considered the co-pay amount. Proof of payment of the co-pay amount

is required with each work invoice submittal.

(10) Corrective actions for which reimbursement is sought

shall conform to the requirements of part 213 and section 21558.

Requests for reimbursement are subject to sections 21559 to 21561.

(11) Any allocated amount for reimbursement in the first round

that is not expended, but subject to appeal pursuant to section

21561, shall be held in reserve until the appeal is exhausted and a

final reimbursement determination is made.

Sec. 21557. (1) If the department determines pursuant to

section 21555 that sufficient funds are available for a second

round of the temporary reimbursement program, the second round

shall be implemented in accordance with this section.

(2) To be considered for eligibility for reimbursement under

the second round of the temporary reimbursement program, a person

shall submit to the department a completed second round

precertification application on a form provided by the department.

A person may submit more than 1 second round precertification

application if he or she possesses more than 1 approved claim for

releases that meet the eligibility requirements in this section.

(3) To be considered for approval, second round

precertification applications shall be received by the department

at or before 5 p.m. on the thirtieth day following the initiation

date of the second round application period.

(4) In order for a person to be eligible for reimbursement

under the second round of the temporary reimbursement program, the

completed second round precertification application shall

demonstrate all of the following:

(a) That the person was the owner or operator who submitted

and had an approved claim or that the person received a valid

assignment of the approved claim in accordance with section 21516.

(b) That the release for which the approved claim was obtained

has not been closed pursuant to part 213.

caused the site to be classified as a class 1 or class 2 site,

based on the most recently submitted data or reports, or as

otherwise determined by the department.

(d) For underground storage tank systems that are operating at

the location from which the release occurred, that the owner or

operator, if he or she is the applicant, is currently in compliance

with the registration and fee requirements of part 211.

(5) An eligible person may receive up to $50,000.00 for

approved corrective action costs for each approved second round

precertification application or such additional amount as may be

made available pursuant to subsection (8). If the number of

precertification applications exceeds available temporary

reimbursement program funding for the second round, the remaining

temporary reimbursement program funds shall be allocated at

$50,000.00 per location on a first-come, first-served basis except

as follows:

(a) First priority shall be given to persons that received no

precertification application approvals in the first round and that

meet the requirements of subsections (2) to (4).

(b) If temporary reimbursement program funds remain after

allocating funds under subdivision (a), second priority shall be

given to persons that received precertification application

approval in the first round and that submit a second round

precertification application to the department for a different

location that meets the requirements of subsections (2) to (4).

(6) If the second round precertification application

successfully demonstrates eligibility in accordance with this

section, the department shall approve the second round

precertification application in accordance with subsection (5), to

the extent that funding is available.

(7) The second round of the temporary reimbursement program is

subject to the requirements of section 21556(5) to (10), including

the co-pay requirements.

(8) If temporary reimbursement program funds remain after all

allocations are made, then, upon appropriation, the remaining money

shall be allocated on a prorated basis among approved first round

and second round precertification applicants for reimbursement,

subject to section 21556(5) to (10). The department shall notify

all approved first round and second round applicants of the amount

of additional reimbursement available within 14 days of the

effective date of the appropriation.

(9) Any allocated amount for reimbursement that is not

expended but subject to appeal, pursuant to section 21561, shall be

held in reserve until the appeal is exhausted and a final