SENATE BILL No. 504

 

 

May 15, 2007, Introduced by Senators VAN WOERKOM, GILBERT, JELINEK, KUIPERS, PATTERSON, CROPSEY and STAMAS and referred to the Committee on Agriculture.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 3101, 3109, 3112, 3115, 5303, 8201, 8202,

 

8203, 8206, 8801, 8802, and 8803 (MCL 324.3101, 324.3109, 324.3112,

 

324.3115, 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 3112 as

 

amended by 2005 PA 33, section 3115 as amended by 2004 PA 143,

 

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 section 8209.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101. As used in this part:

 


     (a) "Agricultural storm water discharge" means a

 

precipitation-related discharge from a MAEAP-verified farm that, at

 

the time of discharge, is managed in accordance with the site-

 

specific nutrient management plan approved under that verification.

 

     (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.

 

     (c) (a) "Aquatic nuisance species" means a nonindigenous

 

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 as many as

 

or more than the numbers 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 a large CAFO that has

 

been verified under section 8203 and is managed in accordance with

 

generally accepted agricultural and management practices under the

 

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

 

related to siting, odor, and manure management as determined by the

 

director of the department of agriculture.

 


     (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

 

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) (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.

 

     (v) (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.

 

     (w) (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.

 

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

 

water within a vessel.

 

     (y) (t) "Sewage sludge" means sewage sludge generated in the

 

treatment of domestic sewage, other than only septage or industrial

 


waste.

 

     (z) (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.

 

     (aa) (v) "Sewage sludge generator" means a person who

 

generates sewage sludge that is applied to land.

 

     (bb) (w) "Sewage sludge distributor" means a person who

 

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

 

derivative.

 

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

 

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

 

     (dd) (y) "Threshold reporting quantity" means that term as

 

defined in R 324.2002 of the Michigan administrative code.

 

     (ee) (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.

 

     (c) To the value or utility of riparian lands.

 

     (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

 

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

 

violation of this part or the rules promulgated 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,

 

designed to protect water resources.

 

     Sec. 3112. (1) A person shall not discharge any waste or waste

 

effluent into the waters of this state unless the person is in

 

possession of a valid permit from the department.

 

     (2) An application for a permit under subsection (1) shall be

 

submitted to the department. Within 30 days after an application

 

for a new or increased use is received, the department shall

 

determine whether the application is administratively complete.

 

Within 90 days after an application for reissuance of a permit is

 


received, the department shall determine whether the application is

 

administratively complete. If the department determines that an

 

application is not complete, the department shall notify the

 

applicant in writing within the applicable time period. If the

 

department does not make a determination as to whether the

 

application is complete within the applicable time period, the

 

application shall be considered to be complete.

 

     (3) The department shall condition the continued validity of a

 

permit upon the permittee's meeting the effluent requirements that

 

the department considers necessary to prevent unlawful pollution by

 

the dates that the department considers to be reasonable and

 

necessary and to assure compliance with applicable federal law and

 

regulations. If the department finds that the terms of a permit

 

have been, are being, or may be violated, it may modify, suspend,

 

or revoke the permit or grant the permittee a reasonable period of

 

time in which to comply with the permit. The department may reissue

 

a revoked permit upon a showing satisfactory to the department that

 

the permittee has corrected the violation. A person who has had a

 

permit revoked may apply for a new permit. If the owner or operator

 

of a large CAFO is convicted of a violation of this part or found

 

responsible for a civil violation under section 3115 by a court,

 

the department shall not reissue a permit under this section or

 

issue a new permit to that owner or operator unless all of the

 

following conditions are met:

 

     (a) The permit prohibits the expansion of the animal feeding

 

operation or any new animal feeding operation which, cumulatively,

 

would exceed the animal production capacity at the AFO on the date

 


of the violation for a period of 3 years after the date of the

 

court action.

 

     (b) The permit applicant has fully complied with any

 

requirements of the court and is in compliance with this part and

 

the rules promulgated under this part.

 

     (c) The permit requires all of the following:

 

     (i) That the permittee annually test the water quality of

 

ambient waters in the vicinity of the AFO to assure compliance with

 

state water quality standards and report that information to the

 

department.

 

     (ii) That the permittee annually test soil samples at the

 

location of the AFO for phosphorus and report that information to

 

the department.

 

     (iii) That the permittee agree to discontinue manure

 

applications at the AFO if the Bray P1 soil test is in excess of

 

150 parts per million until nutrient use by crops reduces

 

phosphorus test levels less than 150 parts per million.

 

     (iv) That the permittee obtain a bond or other mechanism of

 

financial assurance approved by the department in an amount not

 

less than $100,000.00 that may be accessed by the department for

 

remediation in the event of a discharge.

 

     (4) The results of testing under subsection (3)(c) are exempt

 

from the freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246, unless the department determines that water quality

 

standards in ambient waters in the vicinity of the AFO have been

 

caused by the large CAFO.

 

     (5) (4) If the department determines that a person is causing

 


or is about to cause unlawful pollution of the waters of this

 

state, the department may notify the alleged offender of its

 

determination and enter an order requiring the person to abate the

 

pollution or refer the matter to the attorney general for legal

 

action, or both.

 

     (6) (5) A person who is aggrieved by an order of abatement of

 

the department or by the reissuance, modification, suspension, or

 

revocation of an existing permit of the department executed

 

pursuant to this section may file a sworn petition with the

 

department setting forth the grounds and reasons for the complaint

 

and asking for a contested case hearing on the matter pursuant to

 

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

to 24.328. A petition filed more than 60 days after action on the

 

order or permit may be rejected by the department as being

 

untimely.

 

     (7) (6) Beginning January 1, 2007, all oceangoing vessels

 

engaging in port operations in this state shall obtain a permit

 

from the department. The department shall issue a permit for an

 

oceangoing vessel only if the applicant can demonstrate that the

 

oceangoing vessel will not discharge aquatic nuisance species or if

 

the oceangoing vessel discharges ballast water or other waste or

 

waste effluent, that the operator of the vessel will utilize

 

environmentally sound technology and methods, as determined by the

 

department, that can be used to prevent the discharge of aquatic

 

nuisance species. The department shall cooperate to the fullest

 

extent practical with other Great Lakes basin states, the Canadian

 

Great Lakes provinces, the Great Lakes panel on aquatic nuisance

 


species, the Great Lakes fishery commission, the international

 

joint commission, and the Great Lakes commission to ensure

 

development of standards for the control of aquatic nuisance

 

species that are broadly protective of the waters of the state and

 

other natural resources. Permit fees for permits under this

 

subsection shall be assessed as provided in section 3120. The

 

permit fees for an individual permit issued under this subsection

 

shall be the fees specified in section 3120(1)(a) and (5)(a). The

 

permit fees for a general permit issued under this subsection shall

 

be the fees specified in section 3120(1)(c) and (5)(b)(i). Permits

 

under this subsection shall be issued in accordance with the

 

timelines provided in section 3120. The department may promulgate

 

rules to implement this subsection.

 

     (8) 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.

 

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

 

an MAEAP-verified large CAFO.

 

     (c) The animal feeding operation has a discharge, that is not

 

an agricultural storm water discharge, of pollutants into the

 

waters of the state in violation of state water quality standards.

 

     (9) As a condition of a permit issued under subsection (8),

 

the department shall require that the permittee prepare and

 

implement a site-specific nutrient management plan as defined in

 

section 8201 to assure that water quality standards are met.

 

     Sec. 3115. (1) The department may request the attorney general

 


to commence a civil action for appropriate relief, including a

 

permanent or temporary injunction, for a violation of this part or

 

a provision of a permit or order issued or rule promulgated under

 

this part. An action under this subsection may be brought in the

 

circuit court for the county of Ingham or for the county in which

 

the defendant is located, resides, or is doing business. If

 

requested by the defendant within 21 days after service of process,

 

the court shall grant a change of venue to the circuit court for

 

the county of Ingham or for the county in which the alleged

 

violation occurred, is occurring, or, in the event of a threat of

 

violation, will occur. The court has jurisdiction to restrain the

 

violation and to require compliance. In addition to any other

 

relief granted under this subsection, the court, except as

 

otherwise provided in this subsection, shall impose a civil fine of

 

not less than $2,500.00 and the court may award reasonable attorney

 

fees and costs to the prevailing party. However, all of the

 

following apply:

 

     (a) The maximum fine imposed by the court shall be not more

 

than $25,000.00 per day of violation.

 

     (b) For a failure to report a release to the department or to

 

the primary public safety answering point under section 3111b(1),

 

the court shall impose a civil fine of not more than $2,500.00.

 

     (c) For a failure to report a release to the local health

 

department under section 3111b(2), the court shall impose a civil

 

fine of not more than $500.00.

 

     (2) A person who at the time of the violation knew or should

 

have known that he or she discharged a substance contrary to this

 


part, or contrary to a permit or order issued or rule promulgated

 

under this part, or who intentionally makes a false statement,

 

representation, or certification in an application for or form

 

pertaining to a permit or in a notice or report required by the

 

terms and conditions of an issued permit, or who intentionally

 

renders inaccurate a monitoring device or record required to be

 

maintained by the department, is guilty of a felony and shall be

 

fined not less than $2,500.00 or more than $25,000.00 for each

 

violation. The court may impose an additional fine of not more than

 

$25,000.00 for each day during which the unlawful discharge

 

occurred. If the conviction is for a violation committed after a

 

first conviction of the person under this subsection, the court

 

shall impose a fine of not less than $25,000.00 per day and not

 

more than $50,000.00 per day of violation. Upon conviction, in

 

addition to a fine, the court in its discretion may sentence the

 

defendant to imprisonment for not more than 2 years or impose

 

probation upon a person for a violation of this part. With the

 

exception of the issuance of criminal complaints, issuance of

 

warrants, and the holding of an arraignment, the circuit court for

 

the county in which the violation occurred has exclusive

 

jurisdiction. However, the person shall is not be subject to the

 

penalties of this subsection if the discharge of the effluent is in

 

conformance with and obedient to a rule, order, or permit of the

 

department. In addition to a fine, the attorney general may file a

 

civil suit in a court of competent jurisdiction to recover the full

 

value of the injuries done to the natural resources of the state

 

and the costs of surveillance and enforcement by the state

 


resulting from the violation.

 

     (3) Upon a finding by the court that the actions of a civil

 

defendant pose or posed a substantial endangerment to the public

 

health, safety, or welfare, the court shall impose, in addition to

 

the sanctions set forth in subsection (1), a fine of not less than

 

$500,000.00 and not more than $5,000,000.00.

 

     (4) Upon a finding by the court that the actions of a criminal

 

defendant pose or posed a substantial endangerment to the public

 

health, safety, or welfare, the court shall impose, in addition to

 

the penalties set forth in subsection (2), a fine of not less than

 

$1,000,000.00 and, in addition to a fine, a sentence of 5 years'

 

imprisonment.

 

     (5) To find a defendant civilly or criminally liable for

 

substantial endangerment under subsection (3) or (4), the court

 

shall determine that the defendant knowingly or recklessly acted in

 

such a manner as to cause a danger of death or serious bodily

 

injury and that either of the following occurred:

 

     (a) The defendant had an actual awareness, belief, or

 

understanding that his or her conduct would cause a substantial

 

danger of death or serious bodily injury.

 

     (b) The defendant acted in gross disregard of the standard of

 

care that any reasonable person should observe in similar

 

circumstances.

 

     (6) Knowledge possessed by a person other than the defendant

 

under subsection (5) may be attributable to the defendant if the

 

defendant took affirmative steps to shield himself or herself from

 

the relevant information.

 


     (7) A civil fine or other award ordered paid pursuant to this

 

section shall do both of the following:

 

     (a) Be payable to the state of Michigan and credited to the

 

general fund. However, if the violation occurred at an animal

 

feeding operation, the fine shall be credited to the agriculture

 

pollution prevention fund created in section 8206.

 

     (b) Constitute a lien on any property, of any nature or kind,

 

owned by the defendant.

 

     (8) A lien under subsection (7)(b) shall take effect and have

 

takes effect and has priority over all other liens and encumbrances

 

except those filed or recorded prior to the date of judgment, but

 

only if notice of the lien is filed or recorded as required by

 

state or federal law.

 

     (9) A lien filed or recorded pursuant to subsection (8) shall

 

be terminated according to the procedures required by state or

 

federal law within 14 days after the fine or other award ordered to

 

be paid is paid.

 

     (10) In addition to any other method of collection, any fine

 

or other award ordered paid may be recovered by right of setoff to

 

any debt owed to the defendant by the state of Michigan, including

 

the right to a refund of income taxes paid.

 

     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.

 

     (c) That the project is cost effective and implementable from

 

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.

 

     (c) If the project is a sewage treatment works project or a

 

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) "Conservation easement" means that term as it is defined

 

in section 2140.

 

     (b) "Conservation plan" means a plan approved by the

 

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.

 

     (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.

 

     (d) "Conservation programs" means the conservation programs

 

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

 

     (e) (d) "Department" means the department of agriculture or

 

its authorized representatives.

 

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

 

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

 

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

 

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

 

     (h) (e) "Fund" means the agriculture pollution prevention fund

 

created in section 8206.

 

     (i) "MAEAP" means the Michigan agriculture environmental

 

assurance program established under section 8202.

 

     (j) "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.

 

     (k) "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.

 

     (l) (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.

 

     (c) Focuses on livestock, cropping, or farmstead systems.

 

     (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.

 

     (c) Provide payments, financial incentives, or, upon

 

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 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.

 

     (c) The person has agreed to allow the department, after

 

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 as defined in section 3101, the on-site inspection shall

 

be conducted annually.

 

     (e) For a large CAFO as defined in section 3101, the

 

department has conducted an annual on-site inspection of the farm

 

or farm operation and has determined that the farm or farm

 

operation complies 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.

 

     (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.

 


     (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.

 

     (c) For the purchase of conservation easements.

 

     (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).

 

     (c) The balance of the fund on the date of the report.

 


     (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.

 

     (c) "Fund" means the clean water fund created in section 8807.

 

     (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.

 

     (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.

 


     (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 Senate Bill No. 503                                    

 

          of the 94th Legislature is enacted into law.