WASTEWATER, DRINKING WATER, HAZARDOUS                                       H.B. 4540 (H-1):

MATERIALS FEE SUNSETS                                                                  SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4540 (Substitute H-1 as reported without amendment)

Sponsor:  Representative Mary Whiteford

House Committee:  Appropriations

Senate Committee:  Appropriations

CONTENT

The bill would amend the Natural Resources and Environmental Protection Act to delay the sunset on a number of fees collected by the Department of Environmental Quality (DEQ). The bill would delay the sunset of the following fees for four years, from October 1, 2017, to October 1, 2021:

-- Wastewater, storm water, or sewerage system operator certification and training fees. These fees range from $30 to $95 and are paid by individuals seeking certification to operate wastewater, storm water, and sewerage systems.

-- Hazardous waste manifest. Generators of hazardous waste pay the DEQ a fee of $8 for each manifest provided to hazardous waste transporters.

-- Hazardous waste site ID number fee. Hazardous waste generators and transporters, as well as storage, treatment, and disposal facilities, pay a fee of $50 to obtain a site identification number.

-- Hazardous waste handler user charge. Generators of hazardous waste are required to pay an annual charge based on the amount of waste generated. This charge can range from $100 to $1,000. Additionally, treatment, storage, or disposal facilities must pay a charge of $2,000 annually, and those handling used oil must pay $100.

-- Liquid industrial waste facility or transporter site ID number fee. Transporters of liquid industrial waste and facilities that accept liquid industrial waste must pay a $50 one-time fee to obtain a site identification number.

MCL 324.3110 et al.                                                                                                 

FISCAL IMPACT

The bill would have a positive fiscal impact on the Department of Environmental Quality as it would maintain the DEQ's ability to charge fees that generate a total of about $1.3 million each year. The bill would have no fiscal impact on local units of government.

Revenue generated by the fees retained under the bill is directed by statute into two funds. The Operator Certification and Training Fund receives $242,000 annually from the wastewater/storm water and sewage system certification and training fees. The Environmental Pollution Prevention Fund receives $1.1 million annually from the remaining fees: liquid industrial waste transporter/facility site ID fees ($3,900); hazardous waste management fees & handler user charges ($1,052,300); and hazardous waste generator, transporter, and treatment, storage, or disposal facility user charges ($43,800). These funds are used throughout the DEQ budget to support the programs that generate this fee revenue.

Date Completed:  6-19-17                                                     Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.