MUNICIPAL WATER QUALITY GRANTS                                                             H.B. 5395:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5395 (as reported without amendment)

Sponsor:  Representative Joel Johnson

House Committee:  Natural Resources

Senate Committee:  Natural Resources

CONTENT

The bill would amend Part 52 (Strategic Water Quality Initiatives) of the Natural Resources and Environmental Protection Act to expand the purposes for which a grant from the Strategic Water Quality Initiatives Fund may be used, to include up to half of the project costs related to the planning, design, and construction of a sewage collection and treatment system in a municipality that met criteria developed by the Department of Environmental Quality for a substantial public health risk from treatment system failure.

MCL 324.5204e                                                             Legislative Analyst:  Julie Cassidy

FISCAL IMPACT

The bill would have no direct fiscal impact on the Department of Environmental Quality, and would have a positive fiscal impact on certain local units of government.  The bill would expand the types of projects eligible for grants from the Strategic Water Quality Initiatives Fund.  This would allow eligible local units of government to allocate their existing resources elsewhere and effectively save them up to 50% of the cost of a project.  The bill would have no direct fiscal impact on the DEQ as the Fund is specifically designed to provide grants and loans to local units of government; the bill simply would add another category of projects that would be eligible for grants.

Date Completed:  4-21-16                                                     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.