June 14, 2006, Introduced by Reps. Palsrok and Pavlov and referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 21502, 21503, 21506a, and 21552 (MCL
324.21502, 324.21503, 324.21506a, and 324.21552), section 21502 as
amended and sections 21506a and 21552 as added by 2004 PA 390 and
section 21503 as amended by 1996 PA 181, and by adding sections
21553, 21554, 21555, 21556, 21557, 21558, 21559, 21560, 21561,
21562, and 21563.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 21502. As used in this part:
(a) "Administrator" means the fund administrator provided for
in section 21513.
(b) "Advisory board" means the temporary reimbursement program
advisory board established under section 21562.
(c) (b)
"Approved claim" means a claim that is
approved
pursuant to section 21515.
(d) (c)
"Authority" means the Michigan
underground storage
tank financial assurance authority created in section 21523.
(e) (d)
"Board" means the Michigan
underground storage tank
financial assurance policy board created in section 21541.
(f) (e)
"Board of directors" means the board of
directors of
the authority.
(g) (f)
"Bond proceeds account" means the account
or fund to
which proceeds of bonds or notes issued under this part have been
credited.
(h) (g)
"Bonds or notes" means the bonds, notes,
commercial
paper, other obligations of indebtedness, or any combination of
these, issued by the authority pursuant to this part.
(i) (h)
"Claim" means the submission by the owner
or
operator or his or her representative of documentation on an
application requesting payment from the fund. A claim shall
include, at a minimum, a completed and signed claim form and the
name, address, telephone number, and federal tax identification
number of the consultant retained by the owner or operator to carry
out responsibilities pursuant to part 213.
(j) (i)
"Consultant" means a person on the list of
qualified
underground storage tank consultants prepared pursuant to section
21542.
(k) (j)
"Co-pay amount" means the co-pay amount
provided for
in section 21514.
(l) (k)
"Corrective action" means the
investigation,
assessment, cleanup, removal, containment, isolation, treatment, or
monitoring of regulated substances released into the environment or
the taking of such other actions as may be necessary to prevent,
minimize, or mitigate injury to the public health, safety, or
welfare, the environment, or natural resources.
(m) (l) "Department" means the department of
environmental
quality.
(n) "Eligible person" means an owner or operator who meets the
eligibility requirements in section 21556 or 21557 and received
approval of his or her precertification application by the
department.
(o) (m)
"Financial responsibility requirements"
means the
financial responsibility for taking corrective action and for
compensating third parties for bodily injury and property damage
caused by a release from an underground storage tank system that
the owner or operator of an underground storage tank system must
demonstrate under part 211 and the rules promulgated under that
part.
(p) (n)
"Fund" means the Michigan
underground storage tank
financial assurance fund created in section 21506.
(q) (o)
"Heating oil" means petroleum that is No.
1, No. 2,
No. 4--light, No. 4--heavy, No. 5--light, No. 5--heavy, and No. 6
technical grades of fuel oil; other residual fuel oils including
navy special fuel oil and bunker C; and other fuels when used as
substitutes for 1 of these fuel oils.
(r) (p)
"Indemnification" means indemnification of
an owner
or operator for a legally enforceable judgment entered against the
owner or operator by a third party, or a legally enforceable
settlement entered between the owner or operator and a third party,
compensating that third party for bodily injury or property damage,
or both, caused by an accidental release as those terms are defined
in R 29.2163 of the Michigan administrative code.
(s) (q)
"Location" means a facility or parcel of
property
where petroleum underground storage tank systems are registered
pursuant to part 211.
(t) (r)
"Operator" means a person who was, at the
time of
discovery of a release, in control of or responsible for the
operation of a petroleum underground storage tank system or a
person to whom an approved claim has been assigned or transferred.
(u) (s)
"Owner" means a person, other than a
regulated
financial institution, who, at the time of discovery of a release,
held a legal, equitable, or possessory interest of any kind in an
underground storage tank system or in the property on which an
underground storage tank system is located, including, but not
limited to, a trust, vendor, vendee, lessor, or lessee. Owner
includes a person to whom an approved claim is assigned or
transferred. Owner does not include a person or a regulated
financial institution who, without participating in the management
of an underground storage tank system and without being otherwise
engaged in petroleum production, refining, or marketing relating to
the underground storage tank system, is acting in a fiduciary
capacity or who holds indicia of ownership primarily to protect the
person's or the regulated financial institution's security interest
in the underground storage tank system or the property on which it
is located. This exclusion does not apply to a grantor,
beneficiary, remainderman, or other person who could directly or
indirectly benefit financially from the exclusion other than by the
receipt of payment for fees and expenses related to the
administration of a trust.
(v) (t)
"Oxygenate" means an organic compound
containing
oxygen and having properties as a fuel that are compatible with
petroleum, including, but not limited to, ethanol, methanol, or
methyl tertiary butyl ether (MTBE).
Sec. 21503. As used in this part:
(a)
(1) "Payment
voucher" means a form prepared by the
department that specifies payment authorization by the department
to the department of treasury.
(b) (2)
"Petroleum" means crude oil, crude oil
fractions,
and refined petroleum fractions including gasoline, kerosene,
heating oils, and diesel fuels.
(c) (3)
"Petroleum underground storage tank
system" means an
underground storage tank system used for the storage of petroleum.
(d) "Precertification application" means the application
submitted by an owner or operator seeking the department's
eligibility determination for reimbursement for the costs of
corrective action from the temporary reimbursement program.
(e) (4)
"Refined petroleum" means aviation
gasoline, middle
distillates, jet fuel, kerosene, gasoline, residual oils, and any
oxygenates that have been blended with any of these.
(f) "Refined petroleum fund" means the refined petroleum fund
established under section 21506a.
(g) "Refined petroleum product cleanup initial program" means
the program established in section 21553.
(h) "Refined petroleum product cleanup program" means the
refined petroleum product cleanup initial program and the program
to be established after the refined petroleum cleanup advisory
council makes recommendations pursuant to section 21552(10).
(i) (5)
"Regulated financial institution" means a
state or
nationally chartered bank, savings and loan association or savings
bank, credit union, or other state or federally chartered lending
institution or a regulated affiliate or regulated subsidiary of any
of these entities.
(j) (6)
"Regulatory fee" means the environmental
protection
regulatory fee imposed under section 21508.
(k) (7)
"Release" means any spilling, leaking,
emitting,
discharging, escaping, or leaching from a petroleum underground
storage tank system into groundwater, surface water, or subsurface
soils.
(l) "Site" means a location where a release has occurred or a
threat of a release exists from an underground storage tank system,
excluding any location where corrective action was completed which
satisfies the cleanup criteria for unrestricted residential use
under part 213.
(m) "Temporary reimbursement program" means the program
established in section 21554.
(n) (8)
"Underground storage tank system" means an
existing
tank or combination of tanks, including underground pipes connected
to the tank or tanks, which is or was used to contain an
accumulation of regulated substances, and is not currently being
used for any other purpose, and the volume of which, including the
volume of the underground pipes connected to the tank or tanks, is
10% or more beneath the surface of the ground. An underground
storage tank system includes an underground storage tank that is
properly closed in place pursuant to part 211 and rules promulgated
under that part. An underground storage tank system does not
include any of the following:
(i) (a)
A farm or residential tank of 1,100 gallons or less
capacity used for storing motor fuel for noncommercial purposes.
(ii) (b)
A tank used for storing heating oil for consumptive
use on the premises where the tank is located.
(iii) (c)
A septic tank.
(iv) (d)
A pipeline facility, including gathering lines
regulated under either of the following:
(A) (i) The natural gas pipeline safety act of 1968, Public
Law
90-481, 49 U.S.C. USC
Appx 1671 to 1677, 1679a to 1682, and
1683 to 1687.
(B) (ii) Sections 201 to 215, 217, and 219 of the hazardous
liquid pipeline safety act of 1979, title II of the pipeline safety
act
of 1979, Public Law 96-129, 49 U.S.C. USC
Appx 2001 to 2015.
(v) (e)
A surface impoundment, pit, pond, or lagoon.
(vi) (f)
A storm water or wastewater collection system.
(vii) (g)
A flow-through process tank.
(viii) (h)
A liquid trap or associated gathering lines
directly related to oil or gas production and gathering operations.
(ix) (i)
A storage tank situated in an underground area such
as a basement, cellar, mineworking, drift, shaft, or tunnel if the
storage tank is situated upon or above the surface of the floor.
(x) (j)
Any pipes connected to a tank described in
subdivisions
(a) to (i) subparagraphs (i) to (ix).
(xi) (k)
An underground storage tank system holding hazardous
wastes listed or identified under subtitle C of the solid waste
disposal
act, title II of Public Law 89-272, 42
U.S.C. USC 6921
to 6939e, or a mixture of such hazardous waste and other regulated
substances.
(xii) (l) A wastewater treatment tank system that is part of a
wastewater treatment facility regulated under section 307(b) of
title III or section 402 of title IV of the federal water pollution
control
act, 33 U.S.C. USC
1317 and 1342.
(xiii) (m)
Equipment or machinery that contains regulated
substances for operational purposes such as hydraulic lift tanks
and electrical equipment tanks.
(xiv) (n)
An underground storage tank system with a capacity
of 110 gallons or less.
(xv) (o)
An underground storage tank system that contains a
de minimis concentration of regulated substances.
(xvi) (p)
An emergency spill or overflow containment
underground storage tank system that is expeditiously emptied after
use.
(xvii) (q)
A wastewater treatment tank system.
(xviii) (r)
An underground storage tank system containing
radioactive material that is regulated under the atomic energy act
of 1954, chapter 1073, 68 Stat. 919.
(xix) (s)
An underground storage tank system that is part of
an emergency generator system at nuclear power generation
facilities
regulated by the nuclear regulatory commission under 10
C.F.R.
CFR part 50, appendix A to part 50 of title 10 of the
code
of federal regulations.
(xx) (t)
Airport hydrant fuel distribution systems.
(xxi) (u)
Underground storage tank systems with field-
constructed tanks.
(o) (9)
"Work invoice" means an original billing
acceptable
to the administrator and signed by the owner or operator and a
consultant that includes all of the following:
(i) (a)
The name, address, and federal tax identification
number of each contractor who performed work.
(ii) (b)
The name and social security number of each employee
who performed work.
(iii) (c)
A specific itemized list of the
work performed by
each contractor and an itemized list of the cost of each of these
items.
(iv) (d)
A statement that the consultant employed a
documented sealed competitive bidding process for any contract
award exceeding $5,000.00.
(v) (e)
If the consultant did not accept the lowest
responsive bid received, a specific reason why the lowest
responsive bid was not accepted.
(vi) (f)
Upon request of the administrator, a list of all
bids received.
(vii) (g)
Proof of payment of the co-pay amount as required
under section 21514.
Sec. 21506a. (1) The refined petroleum fund is created within
the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the refined petroleum fund. The state
treasurer shall direct the investment of the refined petroleum
fund. The state treasurer shall credit to the refined petroleum
fund interest and earnings from refined petroleum fund investments.
(3) Money in the refined petroleum fund at the close of the
fiscal year shall remain in the refined petroleum fund and shall
not lapse to the general fund.
(4) Money from the refined petroleum fund shall be expended,
upon appropriation, only for 1 or more of the following purposes:
(a) For gasoline inspection programs under both of the
following:
(i) The weights and measures act, 1964 PA 283, MCL 290.601 to
290.634.
(ii) The motor fuels quality act, 1984 PA 44, MCL 290.641 to
290.650d.
(b) Not more than $15,000,000.00 of the money transferred to
the refined petroleum fund pursuant to section 21506(b), for the
refined petroleum product cleanup initial program and for the
department's administrative costs associated with the temporary
reimbursement program.
(c) Not more than $45,000,000.00 of the money transferred to
the refined petroleum fund pursuant to section 21506(b) for
implementation of the temporary reimbursement program.
(d) (b)
For corrective actions necessary to address releases
of refined petroleum products under a refined petroleum product
cleanup program established by law following the issuance of
recommendations from the refined petroleum cleanup advisory council
created in section 21552.
(e) (c)
For the reasonable administrative costs of the
department, the department of agriculture, the department of
attorney general, and the department of treasury in administering
the refined petroleum fund and in implementing the programs
receiving revenue from the refined petroleum fund.
Sec. 21552. (1) The refined petroleum cleanup advisory council
is created.
(2) The council shall consist of all of the following:
(a) Two members appointed by the senate majority leader, 1 of
whom shall be a representative of the petroleum industry.
(b) Two members appointed by the speaker of the house of
representatives, 1 of whom shall be a representative of the
petroleum industry.
(c) Three members appointed by the governor, 1 of whom shall
be a representative of the petroleum industry.
(3) The members first appointed to the council shall be
appointed not later than 60 days after the effective date of the
amendatory act that added this section.
(4) Members of the council shall serve until a successor is
appointed.
(5) If a vacancy occurs on the council, the unexpired term
shall be filled in the same manner as the original appointment was
made.
(6) The first meeting of the council shall be called by the
director. At the first meeting, the council shall elect from among
its members a chairperson and other officers as it considers
necessary or appropriate. After the first meeting, the council
shall meet at least quarterly, or more frequently at the call of
the chairperson or if requested by 2 or more members.
(7) Five of the members of the council constitute a quorum for
the transaction of business at a meeting of the council. An
affirmative vote of a majority of the members of the council is
required for official action of the council.
(8) Members of the council shall serve without compensation.
However, members of the council may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the council.
(9) As soon as practical, but not later than 60 days after all
members of the council have been appointed under subsection (2),
the council shall make a recommendation to the governor and the
legislature on how the money transferred under section 21506(6),
less any amounts appropriated for the fiscal year ending September
30, 2004, should be expended.
(10) By April 1, 2005, the council shall submit to the
governor and the legislature a report that does all of the
following:
(a) Evaluates and makes recommendations for a refined
petroleum cleanup program that provides for corrective actions
necessary to address releases of refined petroleum products. The
recommended refined petroleum cleanup program shall be designed to
benefit owners and operators and to provide for corrective actions
at locations for which an owner or operator who is liable for
corrective actions has not been identified or is insolvent.
(b) Makes recommendations on an appropriate limitation on
administrative costs under section 21506a(4)(c).
(c) Makes recommendations to update obsolete provisions of
this part.
(11) Effective 180 days after the council submits its report
under subsection (10), the council is dissolved.
(12)
This section is repealed August 1 December 31, 2006.
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 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 be responsible for processing
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 no 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 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) The completed first round precertification application
shall be submitted within 180 days of the department's initiation
date of the application period. First round precertification
applications received by the department after 5 p.m. on the one
hundred eightieth day following the department's initiation date of
the application period will not be considered for approval.
(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.
(c) That the release for which the approved claim was obtained
caused the site to be classified as a class 1 or class 2 site
pursuant to the department's authority as set forth in section
21314a, 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) Regarding 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 must
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) The completed second round precertification application
shall be submitted within 30 days of the initiation date of the
second round application period. Second round precertification
applications received by the department after 5 p.m. on the
thirtieth day following the initiation date of the second round
application period will not be considered for approval.
(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.
(c) That the release for which the approved claim was obtained
caused the site to be classified as a class 1 or class 2 site
pursuant to the department's authority as set forth in section
21314a, based on the most recently submitted data or reports, or as
otherwise determined by the department.
(d) Regarding 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 section 21557(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 section 21557(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 (3) and (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 the provisions of 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
reimbursement determination is made.
Sec. 21558. (1) In order to receive money under the temporary
reimbursement program, an eligible person shall retain a consultant
to perform the corrective actions required under part 213.
(2) The consultant shall comply with all of the following
requirements:
(a) The consultant shall submit the following items for
competitive bidding in accordance with procedures established in
this section:
(i) Well drilling, including monitoring wells.
(ii) Laboratory analysis.
(iii) Construction of treatment systems.
(iv) Removal of contaminated soil.
(v) Operation of treatment systems.
(b) All bids received by the consultant shall be submitted on
a standardized bid form prepared by the department.
(c) A consultant may perform work activities specified in
subsection (2)(a) only if the consultant bids for the work activity
and the consultant's bid is the lowest responsive bid. A consultant
who intends to submit a bid must submit the bid to the department
prior to receiving bids from contractors.
(d) Upon receipt of bids, the consultant shall submit to the
department a copy of all bid forms received and the bid accepted.
(e) The consultant shall notify the department in writing of
the bid accepted. If the lowest responsive bid was not accepted,
the consultant shall provide sufficient justification to the
department and receive concurrence from the department before
commencing work. Failure of the department to provide a response
within 21 days shall be considered as concurrence.
(3) An eligible person may request that the consultant
retained by the eligible person add qualified bidders to the list
for requests for bids.
(4) Upon hiring a contractor, a consultant may include a
markup to the contractor's work invoices only if the consultant
pays the contractor and does the billing.
(5) After the consultant employs the competitive bidding
process described in this section, only a consultant may hire the
selected contractors for the work that was the subject of the
bidding process.
(6) Removal of underground storage tank systems or
installation of new or upgraded equipment for the purpose of
attaining compliance with part 211, or work performed for any other
reason not related to the performance of part 213 corrective
actions, is not eligible for temporary reimbursement program
funding under this part.
Sec. 21559. (1) To receive money under the temporary
reimbursement program for corrective action, all of the following
conditions shall be met:
(a) The eligible person, and the consultant retained by the
eligible person, shall follow the procedures outlined in this
section and shall submit reports, work plans, feasibility analyses,
hydrogeological studies, and corrective action plans prepared under
part 213 to the department and shall provide other information
required by the department relevant to determining compliance with
this part and part 213.
(b) The eligible person shall submit a work invoice to the
department, with an attached summary report of the work performed
under the invoice and results of the work performed, including, but
not limited to, laboratory results, soil boring logs, construction
logs, site investigation results, and other information that may be
requested by the department.
(c) Work invoices shall comply with all of the following:
(i) Be submitted on a standardized work invoice form provided
by the department.
(ii) Contain complete information in accordance with the form,
the requirements of this section, and as requested by the
department.
(iii) Be in an amount not less than $5,000.00, except for the
last work invoice submitted for reimbursement under the approved
precertification application.
(2) Upon receipt of a work invoice pursuant to subsection (1),
the department shall make all of the following determinations:
(a) Whether the work performed is necessary and appropriate
considering conditions at the site of the release.
(b) Whether the cost of performing the work is reasonable.
(c) Whether the eligible person is eligible to receive funding
under this part.
(d) Whether the consultant retained by the eligible person has
complied with section 21558.
(3) The department shall deny payment of a work invoice if the
department determines that the corrective action work performed is
not consistent with the requirements of part 213 or does not comply
with the requirements of this part.
(4) Within 45 days after receipt of a work invoice, the
department shall determine whether the work invoice complies with
subsections (1) to (3). The department shall notify the eligible
person in writing of such a determination.
(5) The department shall keep records of approved
precertification applications and work invoices. If the eligible
person has not exceeded the allowable amount of expenditure
provided in sections 21556 and 21557, the department shall forward
an approved payment voucher to the state treasurer within 45 days
after approval of the work invoice.
(6) Except as provided in subsection (7) or as otherwise
provided in this subsection, upon receipt of an approved payment
voucher, the state treasurer shall make a payment jointly to the
eligible person and the consultant within 30 days. However, the
eligible person may submit to the department a signed affidavit
stating that the consultant listed on a work invoice has been paid
in full. The affidavit shall list the work invoice number and
precertification application to which the affidavit applies, a
statement that the eligible person has mailed a copy of the
affidavit by first-class mail to the consultant listed on the work
invoice, and the date that the affidavit was mailed to the
consultant. The department is not required to verify affidavits
submitted under this subsection. If, within 14 days after the
affidavit was mailed to the consultant under this subsection, the
department has not received an objection in writing from the
consultant listed on the work invoice, the state treasurer shall
make the payment directly to the eligible person. If a check has
already been issued to the eligible person and the consultant, the
eligible person shall return the original check to the department
along with the affidavit. If, within 14 days after the affidavit
was mailed to the consultant, the department has not received an
objection from the consultant listed on the check, the state
treasurer shall reissue a check to the eligible person. If a
consultant objects to an affidavit received under this subsection
and notifies the department in writing within 14 days after the
affidavit was mailed to the consultant, the department shall notify
the state treasurer, and the state treasurer shall issue or reissue
the check to the eligible person and the consultant. The grounds
for an objection by a consultant under this subsection shall be
that the consultant has not been paid in full and the objection
shall be made by affidavit. The state treasurer shall issue checks
under this subsection within 60 days after an affidavit has been
received by the department. Once payment has been made under this
section, the refined petroleum fund is not liable for any claim on
the basis of that payment.
(7) Upon direction of the department, the state treasurer may
withhold partial payment of money on payment vouchers if there is
reasonable cause to believe that there are suspected violations of
section 21548 or if necessary to assure acceptable completion of
the corrective actions.
(8) The temporary reimbursement program is subject to the
terms of section 21548.
Sec. 21560. (1) An eligible person with a precertification
application approved pursuant to section 21556 or 21557 for which
corrective action is in progress that sells, or has sold, or
transfers the property that is the subject of the approved
precertification application to another person may assign or
transfer the approved precertification application to that other
person. The person to whom the assignment or transfer is made is
eligible to receive money from the refined petroleum fund temporary
reimbursement program as an eligible person for the release which
is the subject of the approved precertification application.
Previous reimbursements and co-payments of the eligible person
making the assignment or transfer shall be counted toward the
reimbursement and co-pay amount of the person to whom the
assignment or transfer is made.
(2) An eligible person assigning or transferring an approved
precertification application pursuant to this section shall notify
the department of the proposed assignment or transfer at least 10
days prior to the assignee's or transferee's submittal of work
invoices for reimbursement.
Sec. 21561. (1) If the department denies a work invoice
submitted under the temporary reimbursement program, the eligible
person who submitted the work invoice may, within 14 days following
the denial, request review by the department. Upon receipt of a
request for review under this subsection, the department shall
forward the request to the advisory board for a preliminary review.
The advisory board shall conduct a review of the denial and shall
submit a recommendation to the department as to whether the work
invoice complies with this part. No later than 21 days following
review by the advisory board, the department shall approve the work
invoice if the department determines that the work invoice
substantially complies with the requirements of this part. In
making its determination, the department shall give substantial
consideration to the recommendations of the advisory board.
(2) An eligible person who is denied approval by the
department after review under subsection (1) may appeal the
decision directly to the circuit court for the county of Ingham.
Sec. 21562. (1) The temporary reimbursement program advisory
board is created to conduct reviews of denied work invoices upon
the request of eligible persons to the department, and to provide
recommendations to the department upon completion of
such reviews. The advisory board shall also advise the department
on all matters related to the implementation of the temporary
reimbursement program.
(2) The advisory board shall consist of the following:
(a) The members who were appointed to the refined petroleum
cleanup advisory council pursuant to section 21552.
(b) Two representatives of the department appointed by the
director.
(3) An individual appointed to the advisory board shall serve
for a term of 3 years, commencing on the initiation date of the
temporary reimbursement program.
(4) A vacancy on the advisory board shall be filled in the
same manner as the original appointment was made.
(5) The first meeting of the advisory board shall be called by
the department. At its first meeting, the advisory board shall
elect from among its members a chairperson and other officers as it
considers necessary. After the first meeting, a meeting of the
advisory board shall be called by the chairperson on his or her own
initiative or by the chairperson on petition of 3 or more members.
Upon receipt of a petition of 3 or more members, a meeting shall be
called for a date no later than 21 days after the date of receipt
of the petition.
(6) The business that the advisory board may perform shall be
conducted at a public meeting of the advisory board held in
compliance with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275.
(7) A majority of the members of the advisory board constitute
a quorum for the transaction of business at a meeting of the
advisory board. Action by the advisory board shall be by a majority
of the votes cast.
(8) The department may submit to the advisory board, for its
review and evaluation, the competitive bidding process employed by
a consultant pursuant to section 21558. In conducting this review
and evaluation, the advisory board may convene a peer review panel.
Following completion of its review and evaluation, the advisory
board shall forward a copy of its findings to the department and
the consultant. If the advisory board finds the practices employed
by a consultant to be inappropriate, the advisory board may
recommend that the department revoke the consultant's
certification.
(9) A member of the advisory board shall abstain from voting
on any matter in which that member has a conflict of interest.
Sec. 21563. (1) The temporary reimbursement program shall
cease upon payment of all approved work invoices and resolution of
work invoice appeals.
(2) Any temporary reimbursement program funds remaining after
approved work invoices are paid, less any dollar amounts held in
reserve pending resolution of work invoice appeals, shall be
available for future appropriations pursuant to section 21506a(4).
(3) Any temporary reimbursement program funds remaining after
resolution of all work invoice appeals shall be available for
future appropriations pursuant to section 21506a(4).