June 28, 2011, Introduced by Senators BOOHER, PROOS, KOWALL, PAPPAGEORGE and WALKER and referred to the Committee on Natural Resources, Environment and Great Lakes.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 21502 and 21541 (MCL 324.21502 and 324.21541),
section 21502 as amended by 2006 PA 318.
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) "Approved claim" means a claim that is approved pursuant
to section 21515.
(d) "Authority" means the Michigan underground storage tank
financial assurance authority created in section 21523.
(e) "Board" means the Michigan underground storage tank
financial
assurance policy board created in
section 21541.
(f) "Board of directors" means the board of directors of the
authority.
(g) "Bond proceeds account" means the account or fund to which
proceeds of bonds or notes issued under this part have been
credited.
(h) "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) "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) "Class 1 site" means a site posing the highest degree of
threat to the public and environment as determined by the
department, based on the classification system developed by the
department pursuant to section 21314a.
(k) "Class 2 site" means a site posing the second highest
degree of threat to the public and environment as determined by the
department, based on the classification system developed by the
department pursuant to section 21314a.
(l) "Consultant" means a person on the list of qualified
underground storage tank consultants prepared pursuant to section
21542.
(m) "Co-pay amount" means the co-pay amount provided for in
section 21514.
(n) "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.
(o) "Department" means the department of environmental
quality.
(p) "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.
(q) "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.
(r) "Fund" means the Michigan underground storage tank
financial assurance fund created in section 21506.
(s) "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.
(t) "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.
(u) "Location" means a facility or parcel of property where
petroleum underground storage tank systems are registered pursuant
to part 211.
(v) "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.
(w) "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.
(x) "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. 21541. (1) The Michigan underground storage tank
financial
assurance policy board is created
in the department. of
natural
resources.
(2) The board shall consist of the following:
(a)
The director of the department of management and budget or
his
or her designee.
(a) (b)
The director of the department of
natural resources or
his or her designee.
(c)
The director of the department of state police or his or
her
designee.
(d)
The state treasurer or his or her designee.
(b) (e)
Eight Seven individuals appointed by the governor with
the advice and consent of the senate, as follows:
(i) One individual representing an independent petroleum
wholesale distributor-marketer trade association.
(ii) One individual representing a petroleum refiner-supplier
trade association.
(iii) One individual representing a service station dealers'
trade association.
(iv) One individual representing a truck stop operators
trade
association.
(iv) (v) One
individual representing an environmental public
interest organization who is not associated with any of the
organizations
listed in subparagraphs (i) to (iv).(iii).
(v) (vi) Two
individuals representing the general public who
are not associated with any of the organizations listed in
subparagraphs
(i) to (iv).(iii) and who are certified professionals
experienced in the RBCA process.
(vi) (vii) One
individual representing local government.
(3) An individual appointed to the board shall serve for a
term
of 2 4 years.
(4) A vacancy on the board shall be filled in the same manner
as the original appointment.
(5) The first meeting of the board shall be called by the
department. At its first meeting, the board shall elect from among
its members a chairperson and other officers as it considers
necessary. After the first meeting, a meeting of the 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 14 days after the date of receipt of the petition.
(6) The business that the board may perform shall be conducted
at a public meeting of the board held in compliance with the open
meetings
act, Act No. 267 of the Public Acts of 1976, being
sections
15.261 to 15.275 of the Michigan Compiled Laws.1976 PA
267, MCL 15.261 to 15.275.
(7) A majority of the members of the board constitutes a
quorum for the transaction of business at a meeting of the board.
Action by the board shall be by a majority of the votes cast.
(8)
The board shall advise the department and the
administrator
on all matters related to the
implementation of this
part.
(9)
The administrator or the department may submit to the
board,
for its review and evaluation, the competitive bidding
process
employed by a consultant pursuant to section 21517. In
conducting
this review and evaluation, the board may convene a peer
review
panel. Following completion of its review and evaluation,
the
board shall forward a copy of its findings to the department,
the
administrator, and the consultant. If the board finds the
practices
employed by a consultant to be inappropriate, the board
may
recommend that the department remove the consultant from the
list
of qualified consultants.
(10)
Upon request of the administrator or the department, the
board
shall make a recommendation to the department on whether a
consultant
should be removed from the list of qualified
consultants.
Prior to making this recommendation, the board may
convene
a peer review panel to evaluate the conduct of the
consultant
with regard to compliance with this part.
(9) The board shall conduct hearings on petitions to resolve
disputes between either an owner, an operator, a certified
underground storage tank professional, or a qualified underground
storage tank consultant and the department regarding the following:
(a) The department's refusal to place a person on the list of
qualified underground storage tank consultants.
(b) The department's refusal to certify an individual as a
qualified underground storage tank professional.
(c) The attempt to remove a qualified underground storage tank
consultant from the approved list.
(d) The attempt to suspend or revoke the certification of a
certified underground storage tank professional.
(e) Corrective action undertaken pursuant to part 213.
(f) The imposition of penalties pursuant to section 21313a of
part 213.
(g) The results of any audit performed under section 21315 of
part 213.
(h) The placement or removal of placards on an underground
storage tank system pursuant to section 21316a of part 213.
(i) The issuance of an administrative order pursuant to
section 21319a of part 213.
(j) The request for information by the department pursuant to
section 21326 of part 213.
(10) Hearings related to subsection (9)(c) and (d) of this
section shall be conducted pursuant to chapter 5 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.291 to
24.301.
(11) Hearings related to subsection (9)(a), (b), and (e) to
(j) shall be conducted pursuant to chapter 4 of the administrative
procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287.
(12) (11)
A member of the board shall abstain
from voting on
any matter in which that member has a conflict of interest.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No. 528.
(b) Senate Bill No. 531.
(c) Senate Bill No. 533.
(d) Senate Bill No. 530.
(e) Senate Bill No. 532.