HB-5395, As Passed House, March 16, 2016
February 24, 2016, Introduced by Rep. Johnson and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 5204e (MCL 324.5204e), as added by 2012 PA 511.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5204e. (1) In addition to other requirements of this
part, the grant program shall provide grants to municipalities for
sewage collection and treatment systems or storm water or nonpoint
source pollution control as provided for in this section.
(2) The grant program is subject to all of the following:
(a) The grant program shall provide grants in accordance with
the following:
(i) Subject to subparagraph (iii), for grants of up to
$1,000,000.00, not more than 90% of the costs incurred by the
municipality.
(ii) Subject to subparagraph (iii), for grants of more than
$1,000,000.00 and less than $2,000,000.00, not more than 90% of the
costs incurred by the municipality up to $1,000,000.00 and not more
than 75% of the costs above $1,000,000.00 incurred by the
municipality.
(iii) If any of the following conditions are met, a grant may
be issued to cover 100% of the costs incurred by the municipality:
(A) The municipality is a disadvantaged community as defined
in part 53.
(B) The municipality is in receivership.
(C) The municipality is operating under an emergency manager
or an emergency financial manager appointed under state law.
(D) The municipality is operating under a consent agreement as
provided
under the local government fiscal responsibility act, 1990
PA
72, MCL 141.1201 to 141.1291.financial
stability and choice act,
2012 PA 436, MCL 141.1541 to 141.1575.
(b) A grant may be used for 1 or more of the following
purposes:
(i) Development of an asset management program for a sewage
collection and treatment system or a storm water system. For sewage
collection and treatment systems, the program shall include the
development of a funding structure and implementation schedule that
provides sufficient resources to implement the program. The
municipality shall coordinate, as feasible, with other
infrastructure activities in the same geographic area. In addition,
a disadvantaged community may expend not more than $500,000.00 in
grant funds to implement projects identified in the asset
management program.
(ii) Development of management plans for the treatment of
storm water.
(iii) Planning and design of a sewage treatment works project
or stormwater treatment project as defined in section 5301(n) or
(o) or planning and design of construction activities designed to
reduce nonpoint source pollution.
(iv) Project costs of a municipality related to the testing
and demonstration of innovative wastewater and storm water
technologies approved by the department.
(v) Up to 50% of the project costs related to the planning,
design, and construction of a sewage collection and treatment
system if the municipality meets the criteria developed by the
department for a substantial public health risk from treatment
system failure.
(c) The local match is not eligible for loan assistance from
the state water pollution control revolving fund or the fund.
(d) Grant funds shall not be used for general local government
administrative activities or activities performed by municipal
employees that are unrelated to the project.
(e) A municipality shall not receive more than $2,000,000.00
in total grant assistance under this section.
(3) The department shall establish an application and review
process for considering grant applications under this section. The
application shall contain the information required by the
department and the authority. Within 60 days after receipt of an
application, the department shall publish notice of the application
on the department's calendar. Within 120 days after receipt of an
administratively complete grant application, the department shall,
in writing, notify the applicant whether the application is
approved or rejected. If the department approves a grant under this
section, the department and the authority shall enter into a grant
agreement with the recipient prior to transferring funds. The grant
agreement shall contain terms established by the department and the
authority, including both of the following:
(a) A requirement that a grant recipient proceed with a
project for which grant funding is provided within 3 years after
the department approves the grant. For asset management programs
related to sewage collection and treatment systems, this includes
significant progress, as determined by the department, toward
achieving the funding structure necessary to implement the program.
(b) A requirement that the grant recipient repay the grant,
within 90 days of being informed to do so, with interest at a rate
not to exceed 8% per year, to the authority for deposit into the
fund if the applicant is unable to, or decides not to, proceed with
a construction project or begin implementation of an asset
management program for which grant funding is provided.
(4) For each year in which the department receives grant
applications under this section, the department shall report by
October 1 of that year to the standing committees of the senate and
the house of representatives with primary jurisdiction over issues
pertaining to natural resources and the environment and to the
senate and house of representatives appropriations committees on
the utilization of funds under this part that were received from
the Great Lakes water quality bond fund created in section 19706.
The report shall include, at a minimum, all of the following:
(a) The number of grant applications received under this
section.
(b) The name of each municipality applying for a grant.
(c) The type of project being funded for each grant awarded.
(d) The number of users potentially affected by each grant
awarded.
(e) The amount of the local match for each grant awarded.
(f) The individual and annual cumulative amount of grant funds
awarded, including an identification of whether each award was for
the purpose of applying for assistance from the state water
pollution control revolving fund or the fund.