Bill Text: MI HB4633 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Water supply: quality and standards; strategic water quality initiative loan program and fund; modify. Amends secs. 5202 & 5301 of 1994 PA 451 (MCL 324.5202 & 324.5301). TIE BAR WITH: HB 4634'21
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2021-04-15 - Bill Electronically Reproduced 04/14/2021 [HB4633 Detail]
Download: Michigan-2021-HB4633-Introduced.html
HOUSE BILL NO. 4633
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 5202 and 5301 (MCL 324.5202 and 324.5301), section 5202 as amended by 2012 PA 511 and section 5301 as amended by 2012 PA 560.
the people of the state of michigan enact:
Sec. 5202. (1) The authority in consultation with the department shall establish a strategic water quality initiatives loan program. This Within the strategic water quality initiatives loan program the department shall provide create a municipality loan program that provides low or no interest loans to municipalities to and a resident loan program that provides low or no interest loans to residents. The strategic water quality initiatives loan program created under this subsection must provide assistance for 1 or more of the following:
(a) Improvements to reduce or eliminate the amount of groundwater or storm water stormwater entering a sanitary sewer lead or a combined sewer lead.
(b) Upgrades or replacements of failing on-site septic systems that are adversely affecting public health or the environment, or both.
(c) Project costs of the municipality related to testing, demonstration, and construction activities, as that term is defined in section 5301(d) 5301, for innovative wastewater and storm water stormwater technologies approved by the department.
(d) Assistance for construction activities, as that term is defined in section 5301(d) 5301, designed to protect water quality, including improvements that are water or energy efficient, where feasible, when identified through an asset management program or a project identified in an approved storm water stormwater management plan.
(2) The department shall develop criteria specifying the content of an asset management program.
(3) In implementing To implement the strategic water quality imitative loan program under subsection (1), the department shall annually establish the interest rate rates that will be charged for the loans.
(4) To implement the resident loan program under subsection (1)(b), the department shall issue a grant to a community development financial institution or other similar entity.
Sec. 5301. As used in this part:
(a) "Assistance" means 1 or more of the following activities to the extent authorized by the federal water pollution control act:
(i) Provision of loans to municipalities for construction of sewage treatment works projects, stormwater treatment projects, or nonpoint source projects.
(ii) Project refinancing assistance.
(iii) The guarantee or purchase of insurance for local obligations, if the guarantee or purchase action would improve credit market access or reduce interest rates.
(iv) Use of the proceeds of the fund as a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by this state, if the proceeds of the sale of the bonds will be deposited into the fund.
(v) Provision of loan guarantees for similar revolving funds established by municipalities.
(vi) The use of deposited funds to earn interest on fund accounts.
(vii) Provision for reasonable costs of administering and conducting activities under title VI of the federal water pollution control act, 33 USC 1381 to 1387.1388.
(b) "Authority" means the Michigan municipal bond authority created in the shared credit rating act, 1985 PA 227, MCL 141.1051 to 141.1076.
(c) "Capitalization grant" means the federal grant made to this state by the United States environmental protection agency Environmental Protection Agency for the purpose of establishing a state water pollution control revolving fund, as provided in title VI of the federal water pollution control act, 33 USC 1381 to 1387.1388.
(d) "Construction activities" means any actions undertaken in the planning, designing, or building of sewage treatment works projects, stormwater treatment projects, or nonpoint source projects. Construction activities include, but are not limited to, all of the following:
(i) Project planning services.
(ii) Engineering services.
(iii) Legal services.
(iv) Financial services.
(v) Design of plans and specifications.
(vi) Acquisition of land or structural components, or both.
(vii) Building, erection, alteration, remodeling, or extension of a sewage treatment works.
(viii) Building, erection, alteration, remodeling, or extension of projects designed to control nonpoint source pollution, consistent with section 319 of title III of the federal water pollution control act, 33 USC 1329.
(ix) Building, erection, alteration, or remodeling of a stormwater treatment project.
(x) Municipal supervision of the project activities described in subparagraphs (i) to (ix).
(e) "Disadvantaged community" means a municipality in which all of the following conditions are met:
(i) Users within the area served by a proposed sewage treatment works project or stormwater treatment project are directly assessed for the costs of construction.
(ii) The median household income of the area served by a proposed sewage treatment works project or stormwater treatment project does not exceed 120% of the statewide median annual household income for Michigan.this state.
(iii) The municipality demonstrates at least 1 of the following:
(A) More than 50% of the area served by a proposed sewage treatment works project or stormwater treatment project is identified as a poverty area by the United States bureau of census.Census Bureau.
(B) The median annual household income of the area served by a proposed sewage treatment works project or stormwater treatment project is less than the most recently published federal poverty guidelines for a family of 4 in the 48 contiguous United States. In determining the median annual household income of the area served by the proposed sewage treatment works project or stormwater treatment project under this sub-subparagraph, the municipality shall utilize the most recently published statistics from the United States bureau of the census, Census Bureau, updated to reflect current dollars, for the community which that most closely approximates the area being served by the project. As used in this sub-subparagraph, "federal poverty guidelines" means the poverty guidelines published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 USC 9902.
(C) The median annual household income of the area served by a proposed sewage treatment works project or stormwater treatment project is less than the most recently published statewide median annual household income for this state, and annual user costs for sewage treatment or stormwater treatment exceed 1% of the median annual household income of the area served by the proposed sewage treatment works project or stormwater treatment project.
(D) The median annual household income of the area served by a proposed sewage treatment works project or stormwater treatment project is not greater than 120% of the statewide median annual household income for this state, and annual user costs for sewage treatment or stormwater treatment exceed 3% of the median annual household income of the area served by the proposed project.
(f) "Federal water pollution control act" means 33 USC 1251 to 1387.1388.
(g) "Fund" means the state water pollution control revolving fund established under section 16a of the shared credit rating act, 1985 PA 227, MCL 141.1051 to 141.1076, 141.1066a, established pursuant to under title VI of the federal water pollution control act, 33 USC 1381 to 1388.
(h) "Fundable range" means those projects, taken in descending order on the priority lists, for which sufficient funds are estimated by the department to exist to provide assistance at the beginning of each annual funding cycle.
(i) "Municipality" means a city, village, county, township, authority, or other public body, including an intermunicipal agency of 2 or more municipalities, authorized or created under state law; or an Indian tribe that has jurisdiction over construction and operation of sewage treatment works or other projects qualifying under section 319 of title III of the federal water pollution control act, 33 USC 1329.
(j) "Nonpoint source project" means construction activities designed to reduce nonpoint source pollution consistent with the state nonpoint source management plan pursuant to under section 319 of title III of the federal water pollution control act, 33 USC 1329.
(k) "Priority list" means the annual ranked listing of projects developed by the department in section 5303. or used by the department pursuant to section 5315.
(l) "Project" means a sewage treatment works project, a stormwater treatment project, or a nonpoint source project, or a combination of these.
(m) "Project refinancing assistance" means buying or refinancing the debt obligations of municipalities within the this state if construction activities commenced after March 7, 1985 and the debt obligation was incurred after March 7, 1985.
(n) "Sewage treatment works project" means construction activities on any device or system for the treatment, storage, collection, conveyance, recycling, or reclamation of the sewage of a municipality, including combined sewer overflow correction and major rehabilitation of sewers.
(o) "Stormwater treatment project" means construction activities of a municipality on any device or system for the treatment, storage, recycling, or reclamation of storm water stormwater that is conveyed by a storm sewer that is separate from a sanitary sewer.
(p) "Tier I project" means a project for which assistance is sought or provided from funds made directly available from the federal capitalization grant. or from the Great Lakes water quality bond fund pursuant to section 19708(1)(a).
(q) "Tier II project" means a project for which assistance is sought or provided from funds other than those made directly available from the federal capitalization grant. or from the Great Lakes water quality bond fund pursuant to section 19708(1)(a).
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No.4634 (request no. 02278'21) of the 101st Legislature is enacted into law.
