Bill Text: MI HB5383 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Environmental protection; air pollution; low carbon fuel standards; provide for. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding pt. 67.
Spectrum: Partisan Bill (Democrat 20-0)
Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5383 Detail]
Download: Michigan-2009-HB5383-Introduced.html
HOUSE BILL No. 5383
September 17, 2009, Introduced by Reps. Gonzales, Warren, Scripps, Lisa Brown, Roberts, Huckleberry, Slezak, Spade, Donigan, Miller, Valentine, Byrnes, Johnson, Gregory, Lipton, Bledsoe, Kennedy, Constan, Meadows and Leland and referred to the Committee on Great Lakes and Environment.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 67.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 67. LOW CARBON FUEL STANDARD
Sec. 6701. As used in this part:
(a) "Alternative fuel" means any fuel, other than a motor
vehicle fuel, used for the generation of power in an automobile,
sport utility vehicle, or truck, including electricity, hydrogen,
and fuel cells.
(b) "Carbon intensity" means the average full fuel-cycle
greenhouse gas emissions per unit of motor vehicle fuel energy
used.
(c) "Committee" means the low carbon fuel sustainability
technical advisory committee created in section 6709.
(d) "Full fuel-cycle" means the production, extraction,
cultivation, transportation, and storage of fuel feedstock; the
production, manufacture, distribution, marketing, transportation,
and storage of fuel; and vehicle operation including refueling,
combustion, conversion, and evaporation. The full fuel-cycle
includes transportation of, and use of, water and changes in land
use and land cover associated with fuel feedstock and fuel
production.
(e) "Greenhouse gas" means all gases that the
intergovernmental panel on climate change established by the world
meteorological organization and by the United Nations environment
program have designated as contributing to global warming,
including water vapor, carbon dioxide (CO2), nitrous oxide (N2O),
methane (CH4), sulfur hexafluoride (SF6), hydrofluorocarbons,
perfluorocarbons, nitrogen trifluoride (NF3), trifluoromethyl
sulphur pentafluoride (SF5CF3), halogenated ethers, and other
halocarbons.
(f) "Low carbon fuel standard" or "standard" means a maximum
carbon intensity standard adopted under section 6703(1).
(g) "Motor vehicle fuel" means any liquid product used for the
generation of power in an internal combustion engine, except for
aviation gasoline, aviation jet fuels, and liquefied petroleum gas.
(h) "Provider" means a refiner, blender, producer, or importer
of motor vehicle fuel that operates in this state.
Sec. 6703. (1) Within 1 year after the effective date of this
section, the department of environmental quality shall adopt a low
carbon fuel standard for alternative fuels and motor vehicle fuels
that achieves the maximum technologically feasible and cost-
effective greenhouse gas emissions reductions. The standard shall
be set to achieve a goal of reducing the carbon intensity of motor
vehicle fuels and alternative fuels by at least 10% by the year
2020. The standard shall apply to all providers in this state.
(2) In developing the standard, the department of
environmental quality shall do both of the following:
(a) Consult with the department of agriculture and the
department of energy, labor, and economic growth.
(b) To the extent possible, reach agreement with other states
participating in the midwestern governors association climate
initiative on the design of a regional low carbon fuel standard.
Sec. 6705. (1) Within 1 year after the effective date of this
section, the department of environmental quality, in consultation
with the department of agriculture and the department of energy,
labor, and economic growth, shall create a system to measure carbon
intensity.
(2) Within 1 year and 26 weeks after the effective date of
this section, the department of environmental quality shall do all
of the following:
(a) Measure the carbon intensity of each alternative fuel and
motor vehicle fuel refined, blended, or produced in or imported
into this state.
(b) Establish a system by which providers exceeding the
performance required by the low carbon fuel standard receive
credits that may be applied to future obligations under the
standard or traded to providers that do not meet the standard. In
addition to credits, the system may include other market-based
incentives.
Sec. 6707. (1) Within 2 years after the effective date of this
section, the department of agriculture and the department of
natural resources shall establish best management practices,
sustainability criteria, incentives, or certification programs to
do both of the following:
(a) Avoid or reduce, to the maximum extent practicable,
negative impacts on air quality, biodiversity, wildlife habitat,
sensitive lands, soil and forest health, water quality, water
quantity, environmental justice, food security, or other
environmental conditions as a result of implementation of the low
carbon fuel standard.
(b) Avoid or minimize negative environmental impacts from the
sourcing and production of potential new fuels, including
alternative fuels.
(2) Beginning 2 years after the effective date of this
section, the department of agriculture, the department of energy,
labor, and economic growth, and the department of environmental
quality, in consultation with the committee, shall jointly issue a
biennial report on progress and problems in implementing subsection
(1).
Sec. 6709. (1) The low carbon fuel sustainability technical
advisory committee is created within the department of
environmental quality. The committee shall consist of all of the
following members:
(a) A representative of each of the following departments
appointed by the director of that department:
(i) The department of environmental quality.
(ii) The department of agriculture.
(iii) The department of energy, labor, and economic growth.
(iv) The department of natural resources.
(b) A representative of each of the following, appointed by
the governor:
(i) Michigan state university.
(ii) An institution of higher education in this state other
than Michigan state university.
(iii) The forest products industry.
(iv) A statewide farming organization.
(v) A statewide environmental organization.
(vi) A statewide land conservation organization.
(vii) A statewide wildlife conservation organization.
(c) Two members appointed by the governor and selected for
their relevant technical expertise.
(2) The members first appointed to the committee shall be
appointed within 60 days after the effective date of this section.
Members of the committee shall serve for terms of 3 years or until
a successor is appointed, whichever is later, except that the
members first appointed under subsection (1)(a) shall serve for 1
year and the members first appointed under subsection (1)(b)(i) to
(iv) shall serve for 2 years.
(3) If a vacancy occurs on the committee, the vacancy shall be
filled in the same manner as the original appointment. The
appointing officer may remove a member of the committee for
incompetence, dereliction of duty, malfeasance, misfeasance, or
nonfeasance in office, or any other good cause.
(4) The first meeting of the committee shall be called by the
representative of the department of environmental quality. At the
first meeting, the committee shall elect from among its members a
chairperson and other officers as it considers necessary or
appropriate. After the first meeting, the committee shall meet at
least quarterly, or more frequently at the call of the chairperson
or if requested by 3 or more members. A majority of the members of
the committee constitute a quorum for the transaction of business
at a meeting of the committee. A majority of the members present
and serving are required for official action of the committee.
(5) The business that the committee may perform shall be
conducted at a public meeting held in compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275. A writing
prepared, owned, used, in the possession of, or retained by the
committee in the performance of an official function is subject to
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(6) Members of the committee shall serve without compensation
specifically for their service on the committee. However, members
of the committee may be reimbursed for their actual and necessary
expenses incurred in the performance of their official duties as
members of the committee.
(7) The committee shall advise the department of agriculture
and the department of natural resources in the fulfillment of their
duties under section 6707.
Sec. 6711. Within 2 years after the effective date of this
section, the department of environmental quality shall establish a
reporting system under which each provider is required to identify
the fuels used to comply with the low carbon fuel standard and to
demonstrate availability to the public of motor vehicle fuel that
meets the standard.
Sec. 6713. Within 3 years after the effective date of this
section and annually through 2020, each provider shall submit to
the department of environmental quality on a form provided by the
department of environmental quality a report indicating whether the
provider has met all requirements of this part for the previous
calendar year. The department of environmental quality shall post
the reports on its website through 2022.
Sec. 6715. The department of environmental quality shall
promulgate rules to implement this part pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
Sec. 6717. The department of environmental quality, the
attorney general, or a court has the same authority with respect to
this part and rules promulgated or orders issued under this part
that it has under sections 5526 and 5530 with respect to part 55
and rules promulgated or orders issued under that part.
Sec. 6719. (1) A person who knowingly violates any requirement
or prohibition of an applicable requirement of this part or a rule
promulgated under this part or who fails to comply with a final
order issued under this part is guilty of a misdemeanor punishable
by a fine of not more than $10,000.00 per day, for each violation.
(2) A person who knowingly does any of the following is guilty
of a misdemeanor punishable by imprisonment for not more than 1
year and a fine of not more than $10,000.00 per day, for each
violation:
(a) Makes a false material statement, representation, or
certification in, omits material information from, or alters,
conceals, or fails to file any notice, application, record, report,
plan, or other document required to be submitted pursuant to this
part or a rule promulgated under this part.
(b) Fails to notify or report information required to be
submitted under this part or a rule promulgated under this part.
(c) Falsifies, tampers with, renders inaccurate, or fails to
install any monitoring device or method required under this part or
a rule promulgated under this part.
(3) Fines imposed under this section shall be assessed for
each instance of violation and, if the violation is continuous,
shall be assessable up to the maximum amount for each day of
violation.
