SB 504, As Passed Senate

SB-0504, As Passed Senate, June 20, 2007

SUBSTITUTE FOR

SENATE BILL NO. 504

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 3101, 3109, 5303, 8201, 8202, 8203, 8206,

8801, 8802, and 8803 (MCL 324.3101, 324.3109, 324.5303, 324.8201,

324.8202, 324.8203, 324.8206, 324.8801, 324.8802, and 324.8803),

section 3101 as amended by 2006 PA 97, section 3109 as amended by

2005 PA 241, section 5303 as amended by 2002 PA 398, sections 8201,

8202, 8203, and 8206 as added by 2001 PA 176, and sections 8801,

8802, and 8803 as added by 1998 PA 287, and by adding sections

3113b, 3113c, and 8209.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 3101. As used in this part:

(a) "Agricultural storm water discharge" means an agricultural

storm water discharge as described in 40 CFR 122.23.

(b) "Animal feeding operation" or "AFO" means a lot or

facility, other than an aquaculture facility, where animals, other

than aquaculture species, have been, are, or will be stabled or

confined and fed or maintained for a total of 45 days or more in

any 12-month period, and crops, vegetation, forage growth, or

postharvest residues are not sustained in the normal growing season

over any portion of the lot or facility.

species that threatens the diversity or abundance of native species

or the ecological stability of infested waters, or commercial,

agricultural, aquacultural, or recreational activities dependent on

such waters.

(d) ~~(b)~~ "Ballast water" means water and associated solids

taken on board a vessel to control or maintain trim, draft,

stability, or stresses on the vessel, without regard to the manner

in which it is carried.

(e) ~~(c)~~ "Ballast water treatment method" means a method of

treating ballast water and sediments to remove or destroy living

biological organisms through 1 or more of the following:

(i) Filtration.

(ii) The application of biocides or ultraviolet light.

(iii) Thermal methods.

(iv) Other treatment techniques approved by the department.

(f) ~~(d)~~ "Department" means the department of environmental

quality.

(g) ~~(e)~~ "Detroit consumer price index" means the most

comprehensive index of consumer prices available for the Detroit

area from the United States department of labor, bureau of labor

statistics.

(h) ~~(f)~~ "Emergency management coordinator" means that term as

defined in section 2 of the emergency management act, 1976 PA 390,

MCL 30.402.

(i) ~~(g)~~ "Great Lakes" means the Great Lakes and their

connecting waters, including Lake St. Clair.

(j) ~~(h)~~ "Group 1 facility" means a facility whose discharge is

described by R 323.2218 of the Michigan administrative code.

(k) ~~(i)~~ "Group 2 facility" means a facility whose discharge is

described by R 323.2210(y), R 323.2215, or R 323.2216 of the

Michigan administrative code.

(l) ~~(j)~~ "Group 3 facility" means a facility whose discharge is

described by R 323.2211 or R 323.2213 of the Michigan

administrative code.

(m) "Large CAFO" is an AFO that stables or confines not less

than the number of animals specified in any of the following

categories:

(i) 700 mature dairy cows, whether milked or dry.

(ii) 1,000 veal calves.

(iii) 1,000 cattle other than mature dairy cows or veal calves.

Cattle includes heifers, steers, bulls, and cow/calf pairs.

(iv) 2,500 swine each weighing 55 pounds or more.

(v) 10,000 swine each weighing less than 55 pounds.

(vi) 500 horses.

(vii) 10,000 sheep or lambs.

(viii) 55,000 turkeys.

(ix) 30,000 laying hens or boilers, if the AFO uses a liquid

manure handling system.

(x) 125,000 chickens, other than laying hens, if the AFO uses

other than a liquid manure handling system.

(xi) 82,000 laying hens, if the AFO uses other than a liquid

manure handling system.

(xii) 30,000 ducks, if the AFO uses other than a liquid manure

handling system.

(xiii) 5,000 ducks, if the AFO uses a liquid manure handling

system.

(n) ~~(k)~~ "Local health department" means that term as defined

in section 1105 of the public health code, 1978 PA 368, MCL

333.1105.

(o) (l) "Local unit" means a county, city, village, or township

or an agency or instrumentality of any of these entities.

(p) "MAEAP-verified farm" means that term as it is defined in

section 8201.

(q) "MAEAP-verified large CAFO" means that term as it is

defined in section 8201.

(r) ~~(m)~~ "Municipality" means this state, a county, city,

village, or township, or an agency or instrumentality of any of

these entities.

(s) ~~(n)~~ "National response center" means the national

communications center established under the clean water act, 33 USC

Senate Bill No. 504 as amended June 20, 2007

1251 to 1387, located in Washington, DC, that receives and relays

notice of oil discharge or releases of hazardous substances to

appropriate federal officials.

(t) ~~(o)~~ "Nonoceangoing vessel" means a vessel that is not an

oceangoing vessel.

(u) "Nutrient management plan" means <<THAT TERM AS IT

IS DEFINED IN 40 CFR 122.42(E).

(v) ~~(p)~~ "Oceangoing vessel" means a vessel that operates on

the Great Lakes or the St. Lawrence waterway after operating in

waters outside of the Great Lakes or the St. Lawrence waterway.

(w) ~~(q)~~ "Open water disposal of contaminated dredge materials"

means the placement of dredge materials contaminated with toxic

substances as defined in R 323.1205 of the Michigan administrative

code into the open waters of the waters of the state but does not

include the siting or use of a confined disposal facility

designated by the United States army corps of engineers or beach

nourishment activities utilizing uncontaminated materials.

(x) ~~(r)~~ "Primary public safety answering point" means that

term as defined in section 102 of the emergency telephone service

enabling act, 1986 PA 32, MCL 484.1102.

(y) ~~(s)~~ "Sediments" means any matter settled out of ballast

water within a vessel.

(z) ~~(t)~~ "Sewage sludge" means sewage sludge generated in the

treatment of domestic sewage, other than only septage or industrial

waste.

(aa) ~~(u)~~ "Sewage sludge derivative" means a product for land

application derived from sewage sludge that does not include solid

waste or other waste regulated under this act.

(bb) ~~(v)~~ "Sewage sludge generator" means a person who

generates sewage sludge that is applied to land.

(cc) ~~(w)~~ "Sewage sludge distributor" means a person who

applies, markets, or distributes, except at retail, a sewage sludge

derivative.

(dd) ~~(x)~~ "St. Lawrence waterway" means the St. Lawrence river,

the St. Lawrence seaway, and the gulf of St. Lawrence.

(ee) ~~(y)~~ "Threshold reporting quantity" means that term as

defined in R 324.2002 of the Michigan administrative code.

(ff) ~~(z)~~ "Waters of the state" means groundwaters, lakes,

rivers, and streams and all other watercourses and waters,

including the Great Lakes, within the jurisdiction of this state.

Sec. 3109. (1) A person shall not directly or indirectly

discharge into the waters of the state a substance that is or may

become injurious to any of the following:

(a) To the public health, safety, or welfare.

(b) To domestic, commercial, industrial, agricultural,

recreational, or other uses that are being made or may be made of

such waters.

(d) To livestock, wild animals, birds, fish, aquatic life, or

plants or to their growth or propagation.

(e) To the value of fish and game.

(2) The discharge of any raw sewage of human origin, directly

or indirectly, into any of the waters of the state ~~shall be~~

~~considered~~ is prima facie evidence of a violation of this part by

the municipality in which the discharge originated unless the

discharge is permitted by an order or rule of the department. If

the discharge is not the subject of a valid permit issued by the

department, a municipality responsible for the discharge may be

subject to the remedies provided in section 3115. If the discharge

is the subject of a valid permit issued by the department pursuant

to section 3112, and is in violation of that permit, a municipality

responsible for the discharge is subject to the penalties

prescribed in section 3115.

(3) Notwithstanding subsection (2), a municipality is not

responsible or subject to the remedies provided in section 3115 for

an unauthorized discharge from a sewerage system as defined in

section 4101 that is permitted under this part and owned by a party

other than the municipality, unless the municipality has accepted

responsibility in writing for the sewerage system and, with respect

to the civil fine and penalty under section 3115, the municipality

has been notified in writing by the department of its

responsibility for the sewerage system.

(4) Unless authorized by a permit, order, or rule of the

department, the discharge into the waters of this state of any

medical waste, as defined in part 138 of the public health code,

1978 PA 368, MCL 333.13801 to 333.13831, is prima facie evidence of

a violation of this part and subjects the responsible person to the

Senate Bill No. 504 as amended June 20, 2007

penalties prescribed in section 3115.

(5) Beginning January 1, 2007, unless a discharge is

authorized by a permit, order, or rule of the department, the

discharge into the waters of this state from an oceangoing vessel

of any ballast water is prima facie evidence of a violation of this

part and subjects the responsible person to the penalties

prescribed in section 3115.

(6) A violation of this section is prima facie evidence of the

existence of a public nuisance and in addition to the remedies

provided for in this part may be abated according to law in an

action brought by the attorney general in a court of competent

jurisdiction.

(7) Notwithstanding any other provision of this part, an

agricultural storm water discharge shall not be considered <<A

POINT SOURCE DISCHARGE REQUIRING A PERMIT UNDER THIS PART.>>

(8) The department shall review and provide environmental

input to the department of agriculture on all generally accepted

agricultural and management practices established under the

Michigan right to farm act, 1981 PA 93, MCL 286.471 to 286.474,

that are designed to protect water resources.

Sec. 3113b. (1) Except as provided in subsection (2), the

department shall not require an animal feeding operation to obtain

a permit under this part.

(2) An animal feeding operation shall obtain a permit under

this part if any of the following circumstances exist:

(a) The animal feeding operation is 5 times larger than the

minimum size of a large CAFO.

Senate Bill No. 504 as amended June 20, 2007

(b) The animal feeding operation is a large CAFO that is not

an MAEAP-verified large CAFO.

that is not

an agricultural storm water discharge, of pollutants into the

waters of the state<<. >>

(3) As a condition of a permit issued under subsection (2),

the department shall, at a minimum, require that the permittee do

all of the following:

(a) Prepare and implement a nutrient management plan to assure

that water quality standards are met.

(b) If the animal feeding operation is a large CAFO, obtain

certification of construction from the department of agriculture

under section 3113a, if appropriate.

under the Michigan agriculture environmental assurance program

under part 82.

(d) Every 3 years, test soil samples at the location of the

AFO using the Bray P1 soil test for phosphorus and report that

information to the department. If the testing finds phosphorus in

excess of 150 parts per million, the permittee shall discontinue

manure applications at the AFO until nutrient use by crops reduces

phosphorus test levels to less than 150 parts per million.

(4) The department shall annually conduct a compliance

inspection of each animal feeding operation required to obtain a

permit under this section that includes an inspection of manure

storage structures to determine their structural integrity.

Sec. 3113c. (1) The pathogen reduction advisory council is

created in the department. The council shall consist of all the

following members appointed jointly by the director of the

department and the director of the department of agriculture:

(a) Fourteen individuals representing municipal, industry,

agriculture, public health, conservation, and environmental

interests and the general public.

(b) Representatives of the department, the department of

agriculture, the department of community health, the department of

natural resources, Michigan state university, Grand Valley state

university, the United States department of agriculture natural

resources conservation service, and the United States environmental

protection agency as nonvoting members who shall serve as

information resources to the council.

(2) Members of the council appointed under subsection (1)

shall be appointed within 60 days after the effective date of the

amendatory act that added this section.

(3) The council shall do all of the following:

(a) Review scientific information regarding pathogen sources

and associated issued in Michigan.

(b) Study the effectiveness of conservation measures,

technologies, and regulations on pathogen reduction.

related to pathogen reduction.

(d) Provide a recommendation for a pathogen source study of at

least 2 watersheds in the state that includes study scope, scale,

potential participants, time frame and associated costs.

(4) Within 12 months after all members are appointed to the

council, the council shall submit a report, approved by a majority

of the voting members of the council, on its findings and

recommendations under subsection (3) to the senate majority leader,

the speaker of the house of representatives, and the standing

committees of the legislature with jurisdiction primarily related

to natural resources and the environment.

(5) The director of the department and the director of the

department of agriculture shall encourage the implementation of the

council's recommendations of industry-specific conservation

measures.

(6) Effective 6 months after the council submits its findings

and recommendations under subsection (4), the council is disbanded.

Sec. 5303. (1) Municipalities shall consider and utilize,

where possible, cooperative regional or intermunicipal projects in

satisfying sewerage needs in the development of project plans.

(2) A municipality may submit a project plan for use by the

department in developing a priority list.

(3) The project plan for a tier I project shall include

documentation that demonstrates that the project is needed to

assure maintenance of, or to progress toward, compliance with the

federal water pollution control act or part 31, and to meet the

minimum requirements of the national environmental policy act of

1969, ~~Public Law 91-190,~~ 42 ~~U.S.C.~~ USC 4321 ~~, 4331 to 4335, and~~

~~4341~~ to 4347. The documentation shall demonstrate all of the

following:

(a) The need for the project.

(b) That feasible alternatives to the project were evaluated

taking into consideration volume reduction opportunities and the

demographic, topographic, hydrologic, and institutional

characteristics of the area.

a legal, institutional, financial, and management standpoint.

(d) Other information as required by the department.

(4) The project plan for a tier II project shall include

documentation that demonstrates that the project is or was needed

to assure maintenance of or progress towards compliance with the

federal water pollution control act or part 31, and is consistent

with all applicable state environmental laws. The documentation

shall include all of the following information:

(a) Information to demonstrate the need for the project.

(b) A showing that the cost of the project is or was

justified, taking into account available alternatives. Those costs

determined by the department to be in excess of those costs

justified will not be eligible for assistance under this part.

(5) After notice and an opportunity for public comment, the

department shall annually develop separate priority lists for

sewage treatment works projects and stormwater treatment projects,

for nonpoint source projects, and for projects funded under the

strategic water quality initiatives fund created in section 5204.

Projects not funded during the time that a priority list developed

under this section is in effect shall be automatically prioritized

on the next annual list using the same criteria, unless the

municipality submits an amendment to its plan that introduces new

information to be used as the basis for prioritization. These

priority lists shall be based upon project plans submitted by

municipalities, and the following criteria:

(a) That a project complies with all applicable standards in

part 31 and the federal water pollution control act.

(b) An application for a segment of a project that received

funds under the title II construction grant program or title VI

state revolving loan funds of the federal water pollution control

act or the strategic water quality initiatives fund created in

section 5204 shall be first priority on its respective priority

list for funding for a period of not more than 3 years after funds

were first committed under those programs.

stormwater treatment project, all of the following criteria:

(i) The severity of the water pollution problem to be

addressed, maximizing progress towards restoring beneficial uses

and meeting water quality standards.

(ii) A determination of whether a project is or was necessary

to comply with an order, permit, or other document with an

enforceable schedule for addressing a municipality's sewage-related

water pollution problems that was issued by the department or

entered as part of an action brought by the state against the

municipality or any component of the municipality. A municipality

may voluntarily agree to an order, permit, or other document with

an enforceable schedule as described in this subparagraph.

(iii) The population to be served by the project. However, the

criterion provided in this subparagraph shall not be applied to

projects funded by the strategic water quality initiatives fund

created in section 5204.

(iv) The dilution ratio existing between the discharge volume

and the receiving stream.

(d) If the project is a sewage treatment works project, 100

priority points shall be awarded pursuant to R 323.958 of the

Michigan administrative code for each of the following that apply

to the project:

(i) The project addresses on-site septic systems that are

adversely affecting the water quality of a water body or represent

a threat to public health, provided that soil and hydrologic

conditions are not suitable for the replacement of those on-site

septic systems.

(ii) The project includes the construction of facilities for

the acceptance or treatment of septage collected from on-site

septic systems.

(e) Rankings for nonpoint source projects shall be consistent

with the state nonpoint source management plan developed pursuant

to ~~section 319 of title III of the federal water pollution control~~

~~act, chapter 758, 101 Stat. 52,~~ 33 ~~U.S.C.~~ USC 1329. However,

priority shall be given to projects that support the efforts being

made by MAEAP-verified farms as defined in section 8201.

(f) Any other criteria established by the department by rule.

(6) The priority list shall be submitted annually to the chair

of the senate and house of representatives standing committees that

primarily consider legislation pertaining to the protection of

natural resources and the environment.

(7) For purposes of providing assistance, the priority list

shall take effect on the first day of each fiscal year.

(8) This section does not limit other actions undertaken to

enforce part 31, the federal water pollution control act, or any

other act.

(9) As used in this section, "on-site septic system" means

that term as defined in section 5201.

Sec. 8201. As used in this part:

(a) "Agricultural storm water discharge" means that term as it

is defined in section 3101.

(b) ~~(a)~~ "Conservation easement" means that term as it is

defined in section 2140.

department for all or a portion of a parcel of land that specifies

the conservation practices to be undertaken and includes a schedule

for implementation.

(d) ~~(c)~~ "Conservation practices" means practices, voluntarily

implemented by the landowner, that protect and conserve water

quality, soil, natural features, wildlife, or other natural

resources and that meet 1 or more of the following:

(i) The practices comply with United States natural resource

conservation service standards and specifications as approved by

the department.

(ii) The practices are provided in rules promulgated by the

department under this part.

(iii) The practices have been approved by the commission of

agriculture.

(e) "Conservation programs" means the conservation programs

established under section 8202(1) or (2).

(f) ~~(d)~~ "Department" means the department of agriculture or

its authorized representatives.

(g) "Farm" means that term as defined in section 2 of the

Michigan right to farm act, 1981 PA 93, MCL 286.472.

(h) "Farm operation" means that term as defined in section 2

of the Michigan right to farm act, 1981 PA 93, MCL 286.472.

(i) ~~(e)~~ "Fund" means the agriculture pollution prevention fund

created in section 8206.

(j) "Large CAFO" means that term as it is defined in section

3101.

(k) "MAEAP" means the Michigan agriculture environmental

assurance program established under section 8202.

(l) "MAEAP-verified farm" means a farm or farm operation that

has been verified under section 8203 as being in compliance with

the conservation practices required under MAEAP.

(m) "MAEAP-verified large CAFO" means a large CAFO that has

been verified under section 8203 as being in compliance with the

conservation practices required under MAEAP for large CAFOS.

(n) "Site-specific nutrient management plan" means a site

specific conservation plan that meets all of the following

requirements:

(i) Represents a grouping of conservation practices and

management activities that, when implemented as part of a

conservation system, will help to ensure that both production and

natural resources protection goals are achieved.

(ii) Addresses soil erosion, manure, and organic by-products

and their potential impact on water quality.

(iii) Is designed to assist livestock producers in meeting all

applicable local, tribal, state, and federal water quality goals

and regulations.

(o) ~~(f)~~ "Verification" or "verify" means a determination by

the department that 1 or more conservation practices have been

established and are being maintained in accordance with a

conservation plan.

Sec. 8202. (1) The department may establish conservation

programs designed to encourage the ~~voluntary~~ use of conservation

practices in the state.

(2) The department shall implement a Michigan agriculture

environmental assurance program for farms and farm operations that

meets all of the following requirements:

(a) Was recommended by the Michigan agriculture pollution

prevention implementation plan signed by the director of the

department and the director of the department of environmental

quality in 1998.

(b) Consists of education, on-farm risk assessment, and third

party verification by the department of agriculture.

(d) Is designed to help farms and farm operations voluntarily

prevent or minimize agricultural pollution risks.

(e) For primarily livestock operations, requires compliance

with a site-specific nutrient management plan.

(3) ~~(2)~~ In implementing the conservation programs established

under this part, the department, in coordination with the

departments of natural resources and environmental quality, may do

1 or more of the following:

(a) Enter into contracts with 1 or more persons for the

implementation of conservation practices on his or her land.

(b) Enter into contracts or other agreements with 1 or more

persons to administer or promote conservation programs, or to

implement conservation practices.

verification of the implementation of conservation practices,

reimbursement for rental payments or for costs of conservation

practice implementation, or both.

(d) Promote the use of conservation practices.

(e) Recognize and provide awards for persons who have

implemented conservation practices.

(f) Monitor and verify compliance with conservation plans.

(g) Enforce contracts or other agreements entered into under

this part.

(h) Terminate contracts or other agreements entered into under

this part in accord with terms established in the contract or other

agreement.

(4) ~~(3)~~ In carrying out its responsibilities under this part,

the department shall coordinate with the departments of natural

resources and environmental quality and other applicable partners.

Sec. 8203. (1) As part of a conservation program established

under this part, including, but not limited to MAEAP, the

department ~~may~~ shall provide for conservation practice

verification. Conservation practice verification may be ~~granted~~

provided to a person if all of the following conditions are met:

(a) The person has submitted a conservation plan in compliance

with requirements of the department.

(b) The person has established and is maintaining all

conservation practices provided for in the conservation plan,

according to the plan schedule.

giving prior notice to the landowner, to conduct inspections of the

applicable land and facilities.

(d) The department has conducted an on-site inspection of the

conservation practices and has determined that the person has

established and is maintaining all conservation practices provided

for in the conservation plan, according to the plan schedule. For a

large CAFO, the on-site inspection shall be conducted annually and

shall include an inspection of manure storage structures at the

large CAFO to determine their structural integrity.

(e) For primarily livestock operations, the person has

prepared and is maintaining compliance with a site-specific

nutrient management plan.

(f) For a large CAFO, the department has determined all of the

following:

(i) Based upon an on-site inspection of the large CAFO, that

the large CAFO is in compliance with generally accepted

agricultural and management practices under the right to farm act,

1981 PA 93, MCL 286.471 to 286.474, related to siting, odor, and

manure management.

(ii) That the large CAFO has obtained certification under

Senate Bill No. 504 as amended June 20, 2007

section 3113a, if appropriate.

(iii) That the large CAFO is in compliance with both of the

following:

(A) The United States department of agriculture–natural

resource conservation service's standards related to waste storage

facilities that were in effect when the waste storage facilities

were constructed.

(B) Conservation practice standard code 590 (nutrient

management), United States department of agriculture-natural

resource conservation service, NRCS Michigan field office technical

guide, February 2005.

<<(2) If the director of the department of environmental quality

determines that a large CAFO has caused a discharge of pollutants in

violation of part 31, the department of environmental quality shall

notify the director of the department of agriculture. Upon receipt of

notification from the department of environmental quality under this

subsection, the director of the department of agriculture may issue an

order requiring the large CAFO to abate the pollution and to remove

animals from the CAFO.

Senate Bill No. 504 as amended June 20, 2007

(3) ~~(2)~~ If the department determines at any time that the

conservation practices provided in a conservation plan have not

been established or are not being maintained, the department may

revoke a person's conservation practice verification. If the

department determines that a large CAFO has had a discharge of

waste or waste effluent into the waters of this state, other than

an agricultural storm water discharge, the department shall

promptly revoke the large CAFO's conservation practice

verification. The department shall consult with the department of

environmental quality before making such a determination. Within 30

days after a large CAFO's conservation practice verification is

revoked under this subsection, the owner or operator of the large

CAFO shall apply for a permit under part 31.

(4) ~~(3)~~ If a person's conservation practice verification is

revoked, the person may be subject to penalties and repayment of

all or a portion of the payments, financial incentives, land rental

payments, and reimbursement of costs paid for implementation of the

conservation practice according to the terms of the contract.

Sec. 8206. (1) The agriculture pollution prevention fund is

created in the state treasury.

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

any source for deposit into the fund, including state and federal

revenues, gifts, bequests, and other donations. The state treasurer

shall direct the investment of the fund and shall credit to the

fund interest and earnings from fund investments.

(3) Money in the fund or in any account within the fund at the

close of the fiscal year shall remain in the fund or account and

shall not lapse to the general fund.

(4) ~~Money~~ Subject to subsection (5), money in the fund shall

be expended, upon appropriation, only for 1 or more of the

following:

(a) For payments, financial incentives, or reimbursement for

rental payments for the implementation of conservation practices.

(b) For payments required under contracts entered into under

this part.

(d) For monitoring and enforcement of conservation easements.

(e) For awards to participants in conservation programs

established by the department under this part.

(f) For the promotion of conservation programs established by

the department under this part.

(g) Not more than 20% of the annual appropriations from the

fund for the administrative costs of the department in implementing

this part. As used in this subdivision, administrative costs

include, but are not limited to, costs incurred in doing 1 or more

of the following:

(i) Developing and implementing conservation programs.

(ii) Managing payments and financial incentives.

(iii) Monitoring and verifying the implementation of

conservation practices and enforcing contracts or agreements

concerning conservation practices.

(iv) Coordinating conservation programs with the United States

department of agriculture and other state agencies with

jurisdiction over conservation programs.

(5) The department shall give priority to expenditures under

subsection (4) to projects at MAEAP-verified farms.

(6) ~~(5)~~ The department shall annually prepare and submit to

the standing committees of the senate and house of representatives

with jurisdiction over issues related to agriculture and the senate

and house of representatives appropriations committees a report

that includes all of the following:

(a) The amount of money received by the fund during the

previous fiscal year.

(b) The expenditures of money from the fund during the

previous fiscal year broken down by the categories listed in

subsection (4)(a) to (g).

(d) The number of acres in which conservation practices have

been implemented.

(e) The number of acres in which conservation easements have

been purchased or acquired.

Sec. 8209. Notwithstanding any other provision of this act or

a rule promulgated under this act or permit or order issued under

this act, if a farm or farm operation is verified under section

8203, the farm or farm operation shall not be considered to have

caused an impairment of the natural resources of the state unless

the director of the department of environmental quality determines

that water quality data or results from a water quality study

conclusively establish that the farm or farm operation caused a

receiving water body to exceed water quality standards under part

31.

Sec. 8801. As used in this part:

(a) "Department" means the department of environmental

quality.

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

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

control grant or a wellhead protection grant under this part.

(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.

(f) "MAEAP-verified farm" means that term as it is defined in

section 8201.

(g) ~~(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, 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. 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.

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.

and other regional water quality or watershed management plans

approved by the department.

(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) Whether an MAEAP-verified farm is located within the

project area.

(k) ~~(j)~~ Other information the department considers relevant.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) Senate Bill No. 447.

(b) Senate Bill No. 448.