HOUSE BILL No. 5715

 

February 16, 2006, Introduced by Reps. Nitz, Baxter, Proos, Booher, Hansen, Pavlov, Emmons, Huizenga, Newell, Garfield, Mortimer, Casperson, Hune, Meyer, Ball, Vander Veen and Stahl and referred to the Committee on Agriculture.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 8801, 8802, 8803, 8807, 19608, and 19616 (MCL

 

324.8801, 324.8802, 324.8803, 324.8807, 324.19608, and 324.19616),

 

sections 8801, 8802, 8803, and 8807 as added by 1998 PA 287,

 

section 19608 as amended by 2003 PA 252, and section 19616 as added

 

by 1998 PA 288; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 8801. As used in this part:

 

     (a) "Department" means the department of environmental

 

quality. However, with respect to any provision of this part

 

applicable to an agricultural nonpoint source project, department


 

means the department of agriculture.

 

     (b) "Director" means the director of the department.

 

     (b)  (c)  "Fund" means the clean water fund created in section

 

8807.

 

     (c)  (d)  "Grant" means a nonpoint source pollution prevention

 

and control grant or a wellhead protection grant under this part.

 

     (d)  (e)  "Local unit of government" means a county, city,

 

village, or township, or an agency of a county, city, village, or

 

township; the office of a county drain commissioner; a soil

 

conservation district established under part 93; a watershed

 

council; a local health department as defined in section 1105 of

 

the public health code, 1978 PA 368, MCL 333.1105; or an authority

 

or any other public body created by or pursuant to state law.

 

     (e)  (f)  "Nonpoint source pollution" means water pollution

 

from diffuse sources, including runoff from precipitation or

 

snowmelt contaminated through contact with pollutants in the soil

 

or on other surfaces and either infiltrating into the groundwater

 

or being discharged to surface waters, or runoff or wind causing

 

erosion of soil into surface waters.

 

     Sec. 8802. (1) The department of environmental quality, in

 

consultation with the department of agriculture, shall establish a

 

grants program to provide grants for nonpoint source pollution

 

prevention and control projects and wellhead protection projects.

 

However, that portion of the grants program intended to provide

 

grants for agricultural nonpoint source pollution prevention and

 

control projects shall be established by the department of

 

agriculture, in consultation with the department of environmental


 

quality. The grants program shall provide grants to local units of

 

government or entities that are exempt from taxation under section

 

501(c)(3) of the internal revenue code.

 

     (2) The nonpoint source pollution prevention and control

 

grants issued under this part shall be provided for projects that

 

do either or both of the following:

 

     (a) Implement the physical improvement portion of watershed

 

plans that are approved by the department.

 

     (b) Reduce specific nonpoint source pollution as identified by

 

the department.

 

     (3) The wellhead protection grants issued under this part

 

shall be provided for projects that are consistent with a wellhead

 

protection plan approved by the department and that do any of the

 

following:

 

     (a) Plug abandoned wells.

 

     (b) Provide for the purchase of land or the purchase of rights

 

in land to protect aquifer recharge areas.

 

     (c) Implement the physical improvement portion of the wellhead

 

protection plan.

 

     (4) For any grant issued under this part, a local unit of

 

government shall contribute at least 25% of the project's total

 

cost from other public or private funding sources. The department

 

may approve in-kind services to meet all or a portion of the match

 

requirement under this subsection. In addition, the department may

 

accept as the match requirement under this subsection a contract

 

between the grant applicant and the department that provides for

 

maintenance of the project or practices that are funded under terms


 

acceptable to the department. The contract shall require

 

maintenance of the project or practices throughout the period of

 

time in which the state is paying off the bonds that were issued

 

pursuant to the clean Michigan initiative act, 1998 PA 284, MCL

 

324.95101 to 324.95108, to implement this part.

 

     Sec. 8803. In selecting projects for a grant award, the

 

department shall consider the following as they relate to a

 

project:

 

     (a) The expectation for long-term water quality improvement.

 

     (b) The expectation for long-term protection of high quality

 

waters.

 

     (c) The consistency of the project with remedial action plans

 

and other regional water quality or watershed management plans

 

approved by the department of environmental quality.

 

     (d) The placement of the watershed on the list of impaired

 

waters pursuant to  section 303(d) of title III of the federal

 

water pollution control act, chapter 758, 86 Stat. 846, 33 U.S.C.  

 

33 USC 1313.

 

     (e) Commitments for financial and technical assistance from

 

the partners in the project.

 

     (f) Financial and other resource contributions, including in-

 

kind services, by project participants in excess of that required

 

in section 8802(4).

 

     (g) The length of time the applicant has committed to maintain

 

the physical improvements.

 

     (h) The commitment to provide monitoring to document

 

improvement in water quality or the reduction of pollutant loads.


 

     (i) Whether the project provides benefits to sources of

 

drinking water.

 

     (j) Other information the department considers relevant.

 

     Sec. 8807. (1) The clean water fund is created within the

 

state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) Except as otherwise provided in this section, the

 

department shall expend money in the fund, upon appropriation, for

 

any of the following:

 

     (a) To implement the programs described in the  department's  

 

department of environmental quality's document entitled "A

 

strategic environmental quality monitoring program for Michigan's

 

surface waters", dated January 1997. In implementing these

 

programs, the department may contract with any person.

 

     (b) Water pollution control activities.

 

     (c) Wellhead protection activities.

 

     (d) Storm water treatment projects and activities.

 

     (5) Money in the fund shall not be expended for combined sewer

 

overflow corrections.

 

     (6) The first priority for expenditure of money in the fund

 

shall be for the programs described in subsection (4)(a).

 

     (7) Money in the fund shall not be expended until rules are


 

promulgated under section 8808.

 

     Sec. 19608. (1) Money in the fund that is allocated under

 

section 19607 shall be used for the following purposes:

 

     (a) Money allocated under section 19607(1)(a) 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 or to promote redevelopment.

 

     (iii) Assessment activities undertaken by the department to

 

determine whether a property is a facility.

 

     (iv) $75,000,000.00 shall be used to provide grants and loans

 

to local units of government and brownfield redevelopment

 

authorities created under the brownfield redevelopment financing

 

act, 1996 PA 381, MCL 125.2651 to 125.2672, for response activities

 

at known or suspected facilities with redevelopment potential. Of

 

the money provided for in this subparagraph, not more than

 

$37,500,000.00 shall be used to provide grants and not more than

 

$37,500,000.00 shall be used to provide loans pursuant to the clean

 

Michigan initiative revolving loan program created in section

 

19608a. However, grants or loans provided for in this subparagraph

 

shall not be made to a local unit of government or a brownfield

 

redevelopment authority that is responsible for causing a release

 

or threat of release under part 201 at the site proposed for grant

 

or loan funding.


 

     (v) Not more than $12,000,000.00 shall be used for grants

 

pursuant to the municipal landfill cost-share grant program under

 

section 20109a.

 

     (b) Money allocated under section 19607(1)(b) shall be used

 

for waterfront redevelopment grants pursuant to part 795.

 

     (c) Money allocated under section 19607(1)(c) shall be used

 

for response activities for the remediation of contaminated lake

 

and river sediments pursuant to part 201.

 

     (d) Money allocated under section 19607(1)(d) shall be used

 

for nonpoint source pollution prevention and control grants or

 

wellhead protection grants pursuant to part 88. Agricultural

 

nonpoint source pollution prevention and control grants shall be

 

administered by the department of agriculture.  Other grants under

 

this subdivision shall be administered by the department.

 

     (e) Money allocated under section 19607(1)(e) shall be

 

deposited into the clean water fund created in section 8807.

 

     (f) Money allocated under section 19607(1)(f) 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) $5,000,000.00 shall be used by the department to implement

 

pollution prevention activities other than those funded under

 

subparagraphs (i) and (ii).


 

     (g) Money that is allocated under section 19607(1)(g) shall be

 

used by the department of community health for remediation and

 

physical improvements to structures to abate or minimize exposure

 

of persons to lead hazards.

 

     (h) Money allocated under section 19607(1)(h) shall be used

 

for infrastructure improvements at Michigan state parks as

 

determined by the department of natural resources. The installation

 

or upgrade of drinking water systems or rest room facilities shall

 

be the first priority.

 

     (i) Money allocated under section 19607(1)(i) shall be used to

 

provide grants to local units of government for local recreation

 

projects pursuant to part 716.

 

     (2) Of the money allocated under section 19607(1)(a),

 

$93,000,000.00 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  shall  

 

include, but are not limited to, those where public access poses

 

hazards because of potential exposure to chemicals or safety risks

 

and where drinking water supplies are threatened by contamination.

 

     (3) Before expending any funds allocated under subsection

 

(1)(c) 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 provided in the fund may be used by the department

 

of treasury to pay for the cost of issuing bonds and by the

 

department, the department of agriculture, and the department of

 

natural resources to pay department costs as provided in this

 

subsection. Not more than 3% of the total amount specified in

 

section 19607(1)(a) to (f) shall be available for appropriation to

 

the department or the department of agriculture to pay its costs

 

directly associated with the completion of a project authorized by

 

section 19607(1)(a) to (f). Not more than 3% of the total amount

 

specified in section 19607(1)(h) and (i) shall be available for

 

appropriation to the department of natural resources to pay its

 

costs directly associated with the completion of a project

 

authorized by section 19607(1)(h) and (i). It is the intent of the

 

legislature that general fund appropriations to the department, to

 

the department of agriculture, and to the department of natural

 

resources shall not be reduced as a result of costs funded pursuant

 

to this subsection.

 

     (6) A grant shall not be provided under this part for a

 

project that is located at any of the following:

 

     (a) Land sited for use as a gaming facility or as a stadium or

 

arena for use by a professional sports team.

 

     (b) Land or other facilities owned or operated by a gaming

 

facility or by a stadium or arena for use by a professional sports

 

team.

 

     (c) Land within a project area described in a project plan


 

pursuant to the economic development corporations act, 1974 PA 338,

 

MCL 125.1601 to 125.1636, for a gaming facility.

 

     (7) The department, the department of agriculture, the

 

department of natural resources, and the department of community

 

health shall each submit annually a list of all projects that will

 

be undertaken by  that  the administering state department that are

 

recommended to be funded under this part. 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)(a), the department shall

 

publish and disseminate the criteria it will use in evaluating and

 

recommending these projects for funding.

 

     (8) 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.

 

     (9) Not later than December 31 of each year, the department,

 

the department of agriculture, the department of natural resources,

 

and the department of community health shall each submit a list of

 

the projects financed under this part by that administering state

 

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. 19616. The department and the department of agriculture


 

may each promulgate rules as are necessary to implement this part.

 

     Enacting section 1. Section 5315 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.5315, is

 

repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 93rd Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5712(request no.

 

04881'05 *).

 

     (b) Senate Bill No.____ or House Bill No. 5711(request no.

 

05471'05 *).

 

     (c) Senate Bill No.____ or House Bill No. 5713(request no.

 

05472'05).

 

     (d) Senate Bill No.____ or House Bill No. 5714(request no.

 

05473'05 *).

 

     (e) Senate Bill No.____ or House Bill No. 5716(request no.

 

05814'06).