HOUSE BILL NO. 5577

A bill to provide for the creation of a home weatherization, fuel switching, repair, improvement, and hazards remediation program; to provide for contractor qualifications; to provide for the powers and duties of certain state and local governmental officers and entities; and to require the promulgation of rules.

the people of the state of michigan enact:

Sec. 1. As used in this act:

(a) "Department" means the department of health and human services.

(b) "Dwelling" means a single-family home or a building with 5 or more dwelling units.

(c) "Efficient fuel-switching improvement" means an improvement that meets all of the following criteria:

(i) Requires the installation of equipment.

(ii) Replaces a fuel, in whole or part.

(iii) As a result of replacement of the fuel, does both of the following:

(A) Results in a net reduction of statewide greenhouse gas emissions over the lifetime of the improvement.

(B) Increases emissions efficiency resulting in fewer emissions created per unit of useful output of an energy-consuming device, averaged over the lifetime of the improvement.

(d) "Environmental protection community" means a geographic area that the department of environment, Great Lakes, and energy, has identified as a community facing a disproportionate environmental burden, using both of the following:

(i) Tools such as the United States Environmental Protection Agency's EJSCREEN.

(ii) Indicators such as sensitive populations, socioeconomic factors, exposures, and environmental effects.

(e) "Fuel" means energy, including electricity, propane, natural gas, heating oil, gasoline, diesel fuel, or steam, consumed at a dwelling by a retail utility customer.

(f) "Preweatherization" means modification of a dwelling that improves its overall healthfulness and safety for occupants or allows weatherization. Preweatherization includes, but is not limited to, all of the following:

(i) Site or structural work.

(ii) Asbestos, lead, or other toxic chemical abatement.

(iii) Roof repair or replacement.

(iv) Wiring repair or replacement, new electrical wiring, and electrical panel upgrades.

(v) Mold remediation.

(vi) Improvements to indoor air quality and ventilation, including installation of electric appliances and heating and cooling devices.

(vii) Installation of smoke and carbon monoxide alarms.

(viii) Exterior lighting and security.

(ix) Pest management.

(g) "Program" means the program created under section 3.

(h) "Weatherization" means the modification of a dwelling using a whole dwelling approach to improve heating or cooling efficiency, improve building shell efficiency, increase air tightness and sealing, or otherwise reduce energy use, including, but not limited to, any of the following:

(i) Caulking and weather-stripping.

(ii) Insulation of ceilings, attics, walls, floors, or water heaters.

(iii) Installation of storm windows or storm doors.

(iv) Heating or cooling system modifications, including, but not limited to, installation of furnace ignition systems and clock thermostats.

Sec. 3. (1) The department shall create a program that does all of the following:

(a) Contracts with organizations to hire workers and apprentices for, purchase materials for, and perform preweatherization, weatherization, and efficient fuel-switching.

(b) Prioritizes weatherization for both of the following:

(i) Households in which an individual age 65 or older resides.

(ii) Households with income that is less than 250% of the federal 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) Prioritizes creation of weatherization jobs and apprenticeships in the following:

(i) Communities in which a high proportion of household income is spent on energy costs.

(ii) Environmental protection communities.

(d) Provides for auditing of energy use before weatherization.

(e) Provides for appropriate verification and monitoring of projects under the program.

(2) Funding provided to the program may also be used to support department program staff and technical assistance, including, but not limited to, technical assistance to complete home auditing before weatherization and verification and monitoring after weatherization.

(3) The department shall consider entering into a single contract for preweatherization, weatherization, or efficient fuel-switching improvements of multiple eligible households within the same geographic area.

Sec. 5. (1) A person is not eligible to be a contractor or subcontractor under the program unless the person meets all of the following requirements:

(a) Is qualified and responsible.

(b) Has sufficient capabilities to successfully perform program contracts, including the necessary experience, equipment, technical skills and qualifications, and organizational, financial, and personnel resources.

(c) Has a satisfactory record of compliance with labor and employment laws, including, but not limited to, the following:

(i) The workforce opportunity wage act, 2014 PA 138, MCL 408.411 to 408.424.

(ii) The improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945.

(iii) The fair labor standards act of 1938, 29 USC 201 to 219.

(iv) The national labor relations act, 29 USC 151 to 169.

(d) Has a satisfactory environmental record, including, but not limited to, sustainability practices and compliance with the natural resources and environmental protection act, 1994 PA 451, MCL 324.101 to 324.90106, the clean water act, 33 USC 1251 to 1388, and the clean air act, 42 USC 7401 to 7675, and other environmental laws.

(2) A contractor that submits a bid for a contract under the program shall include with the bid a completed questionnaire signed under penalty of perjury. The department shall develop the questionnaire within 90 days after the effective date of this act. The department shall post the questionnaire on its website or otherwise make the questionnaire available to all contractors interested in bidding on projects under the program.

(3) The questionnaire under subsection (2) shall require the contractor to provide all of the following information:

(a) The contractor's current business name and any former business names.

(b) The contractor's principals and history.

(c) State and local licenses held by the contractor.

(d) Confirmation that all subcontractors and employees will maintain applicable state and local licenses.

(e) A list of projects of comparable size and complexity that the contractor has completed within the immediately preceding 5 years.

(f) Proof of insurance.

(g) A statement regarding staffing capabilities and labor sources.

(h) A warranty statement regarding labor, equipment, and materials.

(i) Documentation that the contractor, within the preceding 12 months, filed a tax return under the Michigan business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, in which a portion or all of the income tax base is allocated or apportioned to this state.

(j) Any violations of federal, state, or local law, including, but not limited to, this act and laws described in subsection (1)(c) and (d), of which it has been convicted in the past 10 years. A contractor that has violated this act within the preceding 5 years is not eligible to bid on a contract under the program.

(k) Any other specified documentation or information, other than bid amount, necessary for the purposes of subsection (1) or (6).

(4) The department shall not award bids before the fourteenth day after the deadline for receipt of bids. The department may determine that a contractor is not a responsible bidder after notifying the contractor of the proposed determination and providing an opportunity for a hearing. The contractor must request the hearing within 5 days after receipt of the notice. If the department determines that a contractor is not a responsible bidder, the department shall not consider the contractor's bid.

(5) The department shall maintain a list of contractors determined under subsection (4) within the past 2-year period not to be responsible bidders. A listed contractor is not eligible to bid on a contract under the program.

(6) The department shall consider all of the following in awarding bids under the program:

(a) Bid amount.

(b) The contractor's business accountability, including qualifications of management and supervisory personnel, references, and quality assurance program.

(c) Workplace safety, including all of the following:

(i) Documentation of an ongoing safety training program for employees approved by the Michigan occupational safety and health administration.

(ii) Worker's compensation experience modification rating.

(iii) Whether all craft laborers have completed at least 10 hours of training developed by the United States Department of Labor, Occupational Safety and Health Administration.

(d) Workforce development factors, including all of the following:

(i) Pay rates of employees.

(ii) Provision of health insurance, pension, paid leave, and other benefits.

(iii) Participation in a registered apprenticeship program.

(iv) Registration with the United States Department of Labor, Office of Apprenticeship.

(v) The ratio of masters or journeypersons to apprentices proposed to be used, if applicable.

(e) Social equity, including all of the following:

(i) The percentage of the contractor's workforce that can be drawn from area residents.

(ii) Equal opportunity programs.

(iii) Assurance that the contractor is an equal opportunity employer.

Sec. 7. To the extent consistent with federal statutes, the contract between the department and a contractor shall require the contractor, in all purchases for projects under the program, all other things being equal, to give preference to either of the following:

(a) Products manufactured or services offered by Michigan-based firms.

(b) Biobased products whose content is sourced in this state.

Sec. 9. The department, in conjunction with the department of licensing and regulatory affairs and the department of environment, Great Lakes, and energy, shall develop and implement policies and procedures for sharing information regarding potential contractors' histories of compliance with laws described in section 5(1)(c) and (d).

Sec. 11. Within 1 year after the effective date of this act, the department shall promulgate rules to implement this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The rules shall include, but need not be limited to, both of the following:

(a) A list of preweatherization measures eligible for inclusion in the program.

(b) Standards and procedures for determining and facilitating the participation of multiple-unit dwellings in the program. The department shall convene a stakeholder group to review these standards and procedures within 6 months after their promulgation and at least once every 5 years thereafter. The stakeholder group shall include, but is not limited to, representatives of multifamily housing owners and developers and advocates for persons with low income.

Sec. 13. (1) The director of the department shall enforce this act.

(2) The state administrative board may take action to enforce this act to the extent consistent with 1921 PA 2, MCL 17.1 to 17.3.

(3) In exercising general supervisory control over the functions and activities of all administrative departments, boards, commissioners, and officers of this state and of all state institutions as required by section 3 of 1921 PA 2, MCL 17.3, the state administrative board shall monitor compliance with the requirements of this act.

(4) A report of a violation of this act shall be transmitted to the director of the department, the state administrative board, and the governor's chief compliance officer.