SB-0911, As Passed House, December 14, 2016

SB-0911, As Passed Senate, October 18, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 911

 

 

April 21, 2016, Introduced by Senator HORN and referred to the Committee on Commerce.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 19508, 19509, and 19510 (MCL 324.19508,

 

324.19509, and 324.19510), as added by 1995 PA 60.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 19508. (1) Except as provided in subsection (3), money in

 

the fund that is allocated under section 19507 shall be used for

 

the following purposes:

 

     (a) Money in the fund that is allocated under section

 

19507(1)(a) shall be used for sites identified through part parts

 

201 and 213, to be expended and recovered by the state in the same

 

manner as provided in that part. Of the funds allocated under

 

section 19507(1)(a), the following apply:

 

     (i) Not more than $35,000,000.00 shall be used to clean up


sites of environmental contamination that have been identified

 

under former Act No. 307 of the Public Acts of 1982 or 1982 PA 307,

 

part 201, or part 213; that meet either of the following:

 

     (A) Until the effective date of the 2016 amendatory act that

 

amended this section, will not be funded in the next fiscal year ;

 

and that have been approved by the department as having measurable

 

economic benefit. The department, after consultation with the

 

department of commerce, shall promulgate rules that establish the

 

criteria and process by which sites will be selected and determined

 

to qualify as sites having measurable economic benefit.

 

     (B) Beginning on the effective date of the 2016 amendatory act

 

that amended this section, for projects meeting the criteria of

 

sections 19608 to 19615.

 

     (ii) Not more than $10,000,000.00 may be used to provide

 

grants to eligible communities to investigate and determine whether

 

property within an eligible community is a site of environmental

 

contamination and, if so, to characterize the nature and extent of

 

the contamination. A grant shall only be issued under this

 

subparagraph only if all of the following conditions are met:

 

     (A) The characterization of the nature and extent of

 

contamination includes an estimate of response activity costs in

 

relation to the value of the property in an uncontaminated state

 

and identifies future potential limitations on the use of the

 

property based upon current environmental conditions.

 

     (B) The property has demonstrable economic development

 

potential. This provision does not require a specific development

 

proposal to be identified.


     (C) The property is located within an eligible community that

 

has received less than $1,000,000.00 in total grants under this

 

subparagraph. However, a grant that has resulted in measurable

 

economic benefits shall not be included in the calculation of the

 

$1,000,000.00.

 

     (b) Money in the fund that is allocated for solid waste

 

projects including, but not limited to, reducing, recycling, and

 

properly disposing of solid waste shall be used to fund state

 

projects, to provide grants and loans to local units of government,

 

and to provide grants and loans to private entities for any of the

 

programs identified in part 191, in the amounts appropriated

 

pursuant to subsection (5). Not less than $17,500,000.00 of the

 

money for solid waste projects shall be used to fund the following:

 

     (i) To promote and expand markets for recycled materials.

 

     (ii) To assist in the recycling of solid wastes, including,

 

but not limited to, plastics, metals, tires, wood, and paper.

 

     (iii) To promote research on resource recovery.

 

     (iv) To study marketing options for products that use recycled

 

materials.

 

     (c) Money in the fund that is allocated to capitalize the

 

state water pollution control revolving fund created in section 16a

 

of the shared credit rating act, Act No. 227 of the Public Acts of

 

1985, being section 141.1066a of the Michigan Compiled Laws, 1985

 

PA 227, MCL 141.1066a, shall be used as provided in part 53.

 

     (d) Money in the fund that is allocated to fund this state's

 

participation in a regional Great Lakes protection fund pursuant to

 

part 331.


     (2) If, by June 28, 1995, the department determines that money

 

allocated under subsection (1)(a)(ii) is unlikely to be expended

 

pursuant to that subparagraph, $5,000,000.00 of the money allocated

 

pursuant to that subparagraph shall be expended pursuant to

 

subsection (1)(a)(i).

 

     (3) If money that is expended pursuant to subsection

 

(1)(a)(ii) is recovered by an eligible community from a person who

 

may be liable under part 201, through proceeds from the sale of the

 

property, or through any other mechanism, and additional funds for

 

environmental response activities on the property are not

 

necessary, the eligible community may retain those funds for

 

expenditure on projects that the department determines are eligible

 

to receive funding under subsection (1)(a)(ii). An accounting of

 

the recovered funds must be provided to the department within 30

 

days of receipt, and approval and expenditure of the recovered

 

funds shall be in the same manner as funds awarded pursuant to

 

subsection (1)(a)(ii). If funds are recovered and not spent on

 

other projects pursuant to this subparagraph within 2 years after

 

they are recovered by the eligible community, the eligible

 

community shall forward the money collected to the state treasurer

 

for deposit into the fund to be used pursuant to subsection

 

(1)(a)(ii). When accounting for the use of recovered funds,

 

eligible communities may itemize deductions for site preparation

 

and other costs directly related to the reuse of a site funded

 

under this section.

 

     (4) Money provided in the fund may be used by the department

 

of treasury to pay for the cost of issuing bonds under former Act


No. 326 of the Public Acts of 1988 PA 326 or part 193 and by the

 

department to pay department costs as provided in this subsection.

 

Not more than 6% of the total amount specified in section

 

19507(1)(a), (b), and (d) shall be available for appropriation to

 

the department to pay department costs directly associated with the

 

completion of a project described in section 19507(1)(a), (b), or

 

(d), for which bonds are issued as provided under this part. Any

 

department costs associated with a project described in section

 

19507(1)(c) for which bonds are issued under this part shall be

 

paid as provided in the state statute implementing the state water

 

pollution control revolving fund. Bond proceeds shall not be

 

available to pay indirect, administrative overhead costs incurred

 

by any organizational unit of the department not directly

 

responsible for the completion of a project. It is the intent of

 

the legislature that general fund appropriations to the department

 

shall not be reduced as a result of department costs funded

 

pursuant to this subsection.

 

     (5) Except as provided in subsection (3), the department shall

 

annually submit a list of all projects that are recommended to be

 

funded under this part to the governor, the standing committees of

 

the house of representatives and the senate that primarily address

 

issues pertaining to the protection of natural resources and the

 

environment, and the appropriations committees in the house of

 

representatives and the senate. This list shall be submitted to the

 

legislature not later than February 15 of each year. This list

 

shall also be submitted before any request for supplemental

 

appropriation of bond funds. The list shall include the name,


address, and telephone number of the eligible recipient or

 

participant; the nature of the eligible project; the county in

 

which the eligible project is located; an estimate of the total

 

cost of the eligible project; and other information considered

 

pertinent by the department.

 

     (6) The legislature shall appropriate prospective or actual

 

bond proceeds for projects proposed to be funded. Appropriations

 

shall be carried over to succeeding fiscal years until the project

 

for which the funds are appropriated is completed. Environmental

 

cleanup projects that are eligible for funding under subsection

 

(1)(a), but not including subsection (1)(a)(i) and (ii), shall be

 

prioritized and approved pursuant to the procedures outlined in

 

part 201. Projects to which loans are provided from the state water

 

pollution control revolving fund shall be approved pursuant to

 

state law implementing that fund. The capitalization of the

 

regional Great Lakes protection fund shall be a 1-time

 

appropriation.

 

     (7) Not later than December 31 of each year, the department

 

shall submit a list of the projects financed under this part to the

 

governor, the standing committees of the house of representatives

 

and the senate that primarily address issues pertaining to the

 

protection of natural resources and the environment, and the

 

committees of the house of representatives and the senate on

 

appropriations for the department. The list shall include the name,

 

address, and telephone number of the recipient or participant; the

 

nature of the project; the amount of money received; the county in

 

which the project is located; and other information considered


pertinent by the department.

 

     (8) As used in this section, "eligible community" means any of

 

the following:

 

     (a) A city, village, or township, or a county on behalf of a

 

city, village, or township, that on May 1, 1993 meets the

 

applicable criteria of a local government unit under section

 

2(d)(i) or (ii) 2(f) of the neighborhood enterprise zone act, Act

 

No. 147 of the Public Acts of 1992, being section 207.772 of the

 

Michigan Compiled Laws.1992 PA 147, MCL 207.772.

 

     (b) A city that meets any of the following descriptions:

 

     (i) Has a population of greater than 10,000 and is located

 

within a county that has a population density of less than 39

 

residents per square mile.

 

     (ii) Has a population of greater than 2,500 and is located

 

within a county that has a population density of less than 39

 

residents per square mile.

 

     (iii) Had an average unemployment rate of 11.5% or more during

 

the most recent calendar year for which data is available from the

 

Michigan employment security commission. and meets the criteria of

 

section 2(d)(i)(A), (D), and (E) of Act No. 147 of the Public Acts

 

of 1992.

 

     Sec. 19509. (1) The department shall promulgate rules

 

necessary to implement grant and loan programs provided in this

 

part.

 

     (2) The department shall assure maximum participation by local

 

units of government and by private entities by promulgating rules

 

that provide for a grant or loan program, where appropriate. In


determining whether a grant or a loan program is appropriate, the

 

department shall consider whether the project is likely to be

 

undertaken without state assistance; the availability of state

 

funds from other sources; the degree of private sector

 

participation in the type of project under consideration; the

 

extent of the need for the project as a demonstration project; and

 

such other factors considered important by the department.

 

     (3) Prior to making a grant or loan authorized by this part,

 

the department shall consider the extent to which the making of the

 

grant or loan contributes to the achievement of a balanced

 

distribution of grants and loans throughout the state.

 

     (4) The department shall provide in rules promulgated under

 

this part that loans , where authorized, that are issued by the

 

department to private entities shall include an interest charge of

 

not less than 5% per year.

 

     (5) Notwithstanding any other provision of this section, for

 

grant projects considered for funding under section 19508(1)(a) on

 

or after the effective date of the 2016 amendatory act that amended

 

this section, subsections (1) to (4) do not apply and the

 

department shall apply the criteria used for projects funded under

 

section 19611.

 

     (6) (5) Neither this section nor section 19510 shall apply to

 

loans from the state water pollution control revolving fund.

 

     Sec. 19510. (1) An application for a grant or a loan

 

authorized under this part shall be made on a form prescribed by

 

the department. The department may require the applicant to provide

 

any information reasonably necessary to allow the department to


make a determination required by this part.

 

     (2) Beginning on the effective date of the 2016 amendatory act

 

that amended this section, an application for a grant under section

 

19508(1)(a) is subject to the same requirements listed in section

 

19610 for a loan under section 19608(1)(a)(iv).

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 98th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 908.                                   

 

         

 

     (b) Senate Bill No. 910.                                   

 

         

 

     (c) Senate Bill No. 913.                                   

 

         

 

     (d) Senate Bill No. 909.                                   

 

         

 

     (e) Senate Bill No. 912.