Bill Text: MI HB5599 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Environmental protection; underground storage tanks; cleanups and financial responsibility; modify requirements. Amends secs. 21502, 21503, 21508, 21510, 21510a, 21510c, 21515, 21516, 21521 & 21526 of 1994 PA 451 (MCL 324.21502 et seq.) & adds sec. 21510d.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-12-28 - Assigned Pa 380'16 With Immediate Effect [HB5599 Detail]
Download: Michigan-2015-HB5599-Introduced.html
HOUSE BILL No. 5599
April 26, 2016, Introduced by Rep. LaFontaine and referred to the Committee on Natural Resources.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 21502, 21503, 21508, 21510, 21510a, 21510c,
21515, 21516, 21521, and 21526 (MCL 324.21502, 324.21503,
324.21508, 324.21510, 324.21510a, 324.21510c, 324.21515, 324.21516,
324.21521, and 324.21526), sections 21502, 21503, 21508, 21510,
21515, 21516, 21521, and 21526 as amended and sections 21510a and
21510c as added by 2014 PA 416, and by adding section 21510d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 21502. As used in this part:
(a) "Administrator" means the administrator of the authority
as provided for in section 21525.
(b) "Affiliate" means a person that directly, or indirectly
through 1 or more intermediaries, controls the person specified.
(c) "Approved claim" means a claim that is approved pursuant
to
section 21515.21510.
(d) "Authority" means the underground storage tank authority
created in section 21523.
(e) "Board of directors" or "board" means the board of
directors of the authority.
(f) "Bond proceeds account" means the account within the fund
to which proceeds of bonds or notes issued under this part have
been credited.
(g) "Bonds or notes" means the bonds, notes, commercial paper,
other obligations of indebtedness, or any combination of these,
issued by the finance authority pursuant to this part.
(h) "Bulk transfer" means a transfer of refined petroleum or a
refined petroleum product from, or purchase for resale by, a
refiner, pipeline terminal operator, supplier, or marine terminal
operator to or from another refiner, pipeline terminal operator,
supplier, or marine terminal operator through pipeline tender or
marine delivery, including pipeline movements of refined petroleum
or a refined petroleum product from 1 or more marine vessel
movements of refined petroleum or a refined petroleum product.
Refined petroleum or a refined petroleum product in a refinery,
pipeline, terminal, or marine vessel transporting refined petroleum
or a refined petroleum product to a refinery or terminal is in the
bulk transfer terminal system. Notwithstanding anything to the
contrary in this subdivision, refined petroleum or a refined
petroleum product transferred or purchased for resale by a refiner,
pipeline terminal operator, supplier, or marine terminal operator
must be delivered to or otherwise remain within the bulk transfer
terminal system prior to removal across the rack in order to
constitute a bulk transfer.
(i) "Bulk transfer terminal system" means the refined
petroleum or refined petroleum product distribution system
consisting of refineries, pipelines, marine vessels, and terminals
and includes refined petroleum or refined petroleum product storage
tanks and refined petroleum or refined petroleum product storage
facilities that are part of a refinery, boat terminal transfer, or
terminal owned, operated, or controlled by a refiner, marine
terminal operator, or pipeline terminal operator.
(j) "Claim" means the submission by the owner or operator or
his or her representative of documentation on an application
requesting payment by the authority. A claim shall include, at a
minimum, a completed and signed claim form and the name, address,
and
telephone number ,
and federal tax identification number of
the
owner or operator.
(k)
"Claim "Claims limit" means $1,000,000.00 for all claims
of
owners or operators and their affiliates during a claim period
for
owners and operators of 1 to 100 refined petroleum underground
storage
tanks or $2,000,000.00 for all claims of owners or
operators
and their affiliates during a claim period for owners or
operators
of more than 100 refined petroleum underground storage
tanks.per release. Two or more claims arising out of
the same,
interrelated, associated, repeated, or continuous releases or a
series of related releases shall be subject to 1 claims limit. Any
claim that takes place over 2 or more claim periods shall be
subject to 1 claims limit.
(l) "Claim period" means a 1-year period commencing on October
1 of each year and ending on September 30 the following year.
(m) "Claim period aggregate limit" means the following
aggregate claims limit for all releases discovered during a claim
period:
(i) For owners, operators, and affiliates of 1 to 100 refined
petroleum underground storage tanks, $1,000,000.00.
(ii) For owners, operators, and affiliates of more than 100
refined petroleum underground storage tanks, $2,000,000.00.
(n) (m)
"Controls" means the
possession or the contingent or
noncontingent right to acquire possession, direct or indirect, of
the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting
securities or interests, by contract, other than a commercial
contract for goods or nonmanagement services, by pledge of
securities, or otherwise, unless the power is the result of an
official position with or corporate office held by the person.
(o) (n)
"Corrective action" means
that term as it is defined
in section 21302.
(p) (o)
"Deductible amount" means
the amount of corrective
action costs or indemnification costs that are required to be paid
by
an owner or operator as provided in section 21510a. before
the
owner
or operator is eligible to submit a claim under this part.
(q) (p)
"Department" means the
department of environmental
quality.
(r) (q)
"Eligible person" means
an owner or operator who meets
the eligibility requirements under this part to submit a claim.
(s) (r)
"Excluded liquid" means
that term as defined in 26 CFR
48.4081-1.
(t) (s)
"Finance authority" means
the Michigan finance
authority created by Executive Reorganization Order No. 2010-2, MCL
12.194.
(u) (t)
"Financial responsibility
requirements" means the
financial responsibility for taking corrective action and for
compensating third parties for bodily injury and property damage
caused by a release from a refined petroleum underground storage
tank system that the owner or operator of a refined petroleum
underground storage tank system must demonstrate under part 211 and
the rules promulgated under that part.
(v) (u)
"Fund" means the
underground storage tank cleanup fund
created in section 21506b and includes the bond proceeds account
established within the fund.
(w) (v)
"Indemnification" means
indemnification of an owner or
operator for a legally enforceable judgment entered against the
owner or operator by a third party, or a legally enforceable
settlement entered between the owner or operator and a third party,
compensating that third party for bodily injury or property damage,
or both, caused by an accidental release as those terms are defined
in
R 29.2163 of the Michigan administrative code.Administrative
Code.
(x) (w)
"Location" means a parcel
of property where refined
petroleum underground storage tank systems are registered pursuant
to part 211.
(y) (x)
"Marine terminal
operator" means a person that stores
refined petroleum or a refined petroleum product at a boat terminal
transfer.
(z) (y)
"Operator" means that
term as it is defined in section
21303 or a person to whom an approved claim has been assigned or
transferred.
(aa) (z)
"Owner" means that term
as it is defined in section
21303.
(bb) (aa)
"Oxygenate" means an
organic compound containing
oxygen and having properties as a fuel that are compatible with
petroleum, including, but not limited to, ethanol, methanol, or
methyl tertiary butyl ether (MTBE).
Sec. 21503. As used in this part:
(a) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(b) "Pipeline terminal operator" means a person that receives
and stores refined petroleum or a refined petroleum product in
tanks and other equipment used in receiving and storing refined
petroleum or a refined petroleum product from interstate and
intrastate pipelines, pending wholesale bulk reshipment.
(c) "Qualifying expenditures" means an expenditure for a
specific activity that does not exceed the allowable payment for
that activity as detailed on the schedule of costs.
(d) "Rack" means a mechanism for delivering refined petroleum
or a refined petroleum product from a refiner, a pipeline terminal
operator, or a marine terminal operator into a railroad tank car, a
transport truck, a tank wagon, or the fuel supply tank of a marine
vessel.
(e) "Refined petroleum" means aviation gasoline, middle
distillates, jet fuel, kerosene, gasoline, residual oils, and any
oxygenates that have been blended with any of these. Refined
petroleum includes refined petroleum products and transmix. Refined
petroleum does not include excluded liquids.
(f) "Refined petroleum fund" means the refined petroleum fund
established under section 21506a.
(g) "Refined petroleum underground storage tank" means an
underground storage tank system used for the storage of refined
petroleum.
(h) "Refiner" means a person that meets both of the following:
(i) Manufactures or produces refined petroleum or a refined
petroleum product at a refinery.
(ii) Is a taxable fuel registrant that is a refiner for
purposes of 26 CFR 48.4081-1.
(i) "Refinery" means a facility used by a refiner to produce
refined petroleum or a refined petroleum product from crude oil,
unfinished oils, natural gas liquids, or other hydrocarbons by any
process involving substantially more than the blending of refined
petroleum and from which refined petroleum or a refined petroleum
product may be removed by pipeline or marine vessel or at a rack.
(j) "Regulated financial institution" means a state or
nationally chartered bank, savings and loan association or savings
bank, credit union, or other state or federally chartered lending
institution or a regulated affiliate or regulated subsidiary of any
of these entities.
(k) "Regulatory fee" means the environmental protection
regulatory fee imposed under section 21508.
(l) "Release" means that term as it is defined in section
21303.
(m) "Removal" or "removed" means a physical transfer other
than by evaporation, loss, or destruction of refined petroleum or a
refined petroleum product from a refiner, pipeline terminal
operator, or marine terminal operator.
(n) "Schedule of costs" means the list of allowable
reimbursement amounts that may be paid on a claim, as established
in section 21510b.
(o) "Site" means that term as it is defined in section 21303.
(p) "Supplier" means a supplier or permissive supplier
licensed under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to
207.1170.
(q) "Tank wagon" means a straight truck having 1 or more
compartments other than the fuel supply tank designed or used to
carry fuel.
(r) "Terminal" means a refined petroleum or refined petroleum
products storage and distribution facility that meets all of the
following requirements:
(i) Is registered as a qualified terminal by the internal
revenue service.
(ii) Is supplied by a pipeline or a marine vessel.
(iii) Has a rack from which refined petroleum or refined
petroleum products may be removed.
(s) "Transmix" means the mixed product that results from the
buffer or interface of 2 different products in a pipeline shipment,
or a mixture of 2 different products within a refinery or terminal
that results in an off-grade mixture.
(t) "Transport truck" means a semitrailer combination rig
designed or used for the purpose of transporting refined petroleum
or a refined petroleum product over the public roads or highways.
(u) "Two-party exchange" means a transaction, including a book
transfer, in which refined petroleum or a refined petroleum product
is transferred from 1 supplier to another supplier and to which all
of the following apply:
(i) The transaction includes a transfer of refined petroleum
or a refined petroleum product from the person that holds the
original inventory position for the refined petroleum or refined
petroleum product in storage tanks as reflected in the records of
the refiner, pipeline terminal operator, or marine terminal
operator.
(ii) The exchange transaction is completed before removal
across the rack by the receiving supplier.
(iii) The refiner, pipeline terminal operator, or marine
terminal operator in its books and records treats the receiving
exchange party as the supplier that removes the refined petroleum
or refined petroleum product across a rack for purposes of
reporting the transaction to the department under the motor fuel
tax act, 2000 PA 403, MCL 207.1001 to 207.1170.
(v) "Underground storage tank system" means that term as it is
defined in section 21303.
(w) "Work invoice" means a list of goods or services for costs
of corrective action related to a claim, including a statement of
the amount due.
Sec. 21508. (1) An environmental protection regulatory fee is
imposed on all refined petroleum products sold for resale in this
state or consumption in this state. The regulatory fee shall be
charged for capacity utilization of refined petroleum underground
storage tanks measured on a per gallon basis. The regulatory fee
shall be charged against all refined petroleum products sold for
resale in this state or consumption in this state so as to not
exclude any products that may be stored in a refined petroleum
underground tank at any point after the petroleum is refined. The
regulatory fee shall be 7/8 cent per gallon for each gallon of
refined petroleum sold for resale in this state or consumption in
this state, with the per gallon charge being a direct measure of
capacity utilization of a refined underground storage tank system.
Beginning
January 1, 2015, the The regulatory fee shall not be
imposed on a bulk transfer of or a 2-party exchange involving
refined petroleum or refined petroleum products.
(2) The department of treasury shall precollect regulatory
fees from persons who refine petroleum in this state for resale in
this state or consumption in this state and persons who import
refined petroleum into this state for resale in this state or
consumption
in this state. The department of treasury shall collect
regulatory
fees that can be collected at the same time as the sales
tax
under section 6a of the general sales tax act, 1933 PA 167, MCL
205.56a.
The remainder of the regulatory
fees shall be collected in
the manner determined by the state treasurer.
(3) A public utility with more than 500,000 customers in this
state is exempt from any fee or assessment imposed under this part
if that fee or assessment is imposed on petroleum used by that
public utility for the generation of steam or electricity.
(4)
Beginning on the effective date of the 2014 amendatory act
that
amended this section, all All
regulatory fees collected
pursuant to this part during each state fiscal year shall be
deposited as follows:
(a) The first $20,000,000.00 that is collected shall be
deposited into the fund.
(b) Following the deposit under subdivision (a), all money
collected shall be deposited into the refined petroleum fund.
(5) The department of treasury may audit, enforce, collect,
and assess the fee imposed by this part in the same manner and
subject to the same requirements as revenues collected pursuant to
1941 PA 122, MCL 205.1 to 205.31.
Sec. 21510. (1) An owner or operator is eligible to receive
money from the authority for corrective action or indemnification
due to a release from a refined petroleum underground storage tank
system only if all of the following requirements are satisfied and
the owner or operator otherwise complies with this part:
(a) The release from which the corrective action or
indemnification
arose was discovered and reported on or after the
effective
date of the 2014 amendatory act that amended this
section.December 30, 2014.
(b) The refined petroleum underground storage tank from which
the release occurred was, at the time of discovery of the release,
and is presently, in compliance with the registration and fee
requirements
of part 211. and the rules promulgated under that
part.
(c) The owner or operator reported the release within 24 hours
after its discovery as required by part 211 and the rules
promulgated under that part.
(d) The owner or operator is not the United States government.
(e) The claim is not for a release from a refined petroleum
underground storage tank closed prior to January 1, 1974, in
compliance with the fire prevention code, 1941 PA 207, MCL 29.1 to
29.33, and the rules promulgated under that act.
(f) The owner or operator has maintained financial
responsibility requirements for the deductible amount.
(g)
The owner or operator has paid the deductible amount.
(g) (h)
The owner or operator is otherwise
eligible to receive
money from the authority under this part.
(h) (i)
The total amount of expenditures,
including the
deductible
amount, does not exceed the claim claims limit or the
claim period aggregate limit applicable to the claim.
(2) The owner or operator may receive money from the authority
for corrective action or indemnification due to a release that
originates from an aboveground piping and dispensing portion of a
refined petroleum underground storage tank system if all of the
following requirements are satisfied:
(a) The owner or operator is otherwise in compliance with this
part and the rules promulgated under this part.
(b) The release is sudden and immediate.
(c) The release is of a quantity exceeding 25 gallons and is
released into groundwater, surface water, or soils.
(d) The owner or operator reported the release to the
department within 24 hours after its discovery.
(3) Either the owner or the operator may receive money from
the authority under this part for an occurrence, but not both.
(4) An owner or operator that is a public utility with more
than 500,000 customers in this state is ineligible to receive money
from the authority for corrective action or indemnification
associated with a release from a refined petroleum underground
storage tank system used to supply refined petroleum for the
generation of steam electricity.
(5) If an owner or operator has received money from the
authority under this part for a release at a location, the owner
and operator are not eligible to receive money from the authority
for a subsequent release at the same location unless the owner or
operator has done either or both of the following:
(a) Discovered the subsequent release pursuant to corrective
action being taken on a confirmed release and included this
subsequent release as part of the corrective action for the
confirmed release.
(b) Upgraded, replaced, removed, or properly closed in place
all refined petroleum underground storage tank systems at the
location of the release so as to meet the requirements of part 211
and the rules promulgated under that part.
(6)
An owner or operator who that
discovers a subsequent
release at the same location as an initial release pursuant to
subsection (5)(a) may receive money from the authority to perform
corrective action on the subsequent release, if the owner or
operator otherwise complies with the requirements of this part and
the rules promulgated under this part. However, the subsequent
release shall be considered as part of the claim for the initial
release for purposes of determining the total amount of
expenditures for corrective action and indemnification under
subsection
(1)(i).(1)(h).
(7)
An owner or operator who that
discovers a subsequent
release at the same location as an initial release following
compliance with subsection (5)(b) may receive money from the
authority to perform corrective action on the subsequent release,
if there have been not more than 2 releases at the location, and if
the owner or operator otherwise complies with the requirements of
this part and the rules promulgated under this part. The subsequent
release shall be considered a separate claim for purposes of
determining the total amount of expenditures for corrective action
and
indemnification under subsection (1)(i).(1)(h).
(8)
An owner or operator may submit to the authority a request
for
a determination that the owner or operator would be eligible
for
funding under this part in the event of a release from a
refined
petroleum underground storage tank system. Upon receipt of
a
request under this subsection, the authority shall make a
determination
and provide notice of that determination, in writing,
to
the owner or operator. The notice may contain conditions for
maintenance
of that eligibility.An owner
or operator that seeks to
receive money from the authority for corrective action shall submit
to the administrator the cleanup fund claim submittal form created
by the authority containing the information required by the
administrator to determine compliance with this part. The
administrator shall determine whether the claim complies with this
part and shall notify the owner or operator. The administrator may
consult with the department of licensing and regulatory affairs to
make the determination required in this subsection.
Sec.
21510a. (1) Prior to submitting a claim under this part,
an
An owner or operator is responsible for a deductible
amount as
follows:
(a) Subject to subdivision (b), $50,000.00 per claim.
(b) If the owner or operator or its affiliate owns or operates
fewer than 8 refined petroleum underground storage tanks and pays
the authority an annual fee of $500.00 per refined petroleum
underground storage tank, $15,000.00 per claim. For purposes of
this subdivision, each compartment of a multiple compartment
refined petroleum underground storage tank is considered a refined
petroleum underground storage tank for purposes of calculating the
annual fee.
(2) The due date for the annual fee paid pursuant to
subsection (1)(b) shall be set by the authority. For the $15,000.00
per claim deductible to be in effect, the owner or operator must
have paid the annual fee of $500.00 per refined petroleum
underground storage tank prior to the discovery and reporting of
the release for which any subsequent claim is filed.
(3) The deductible amount applies to each claim. However, 2 or
more claims arising out of the same, interrelated, associated,
repeated, or continuous releases or a series of related releases
shall
be considered a single claim and be are subject to 1 claim
limit
and 1 deductible amount. Any claim which
that takes place
over
2 or more claim periods shall be is subject to 1 claim
limit
and
1 deductible amount.
(4)
An owner or operator that submits a claim work invoice
under
section 21515 shall include work invoices or other evidence
that
is responsible for the deductible amount described in
subsection
(1). has been met. The expenses toward meeting
the
deductible amount shall be documented and shall comply with the
following:
(a) Expenses for items listed in the schedule of costs shall
be at or below the allowable reimbursement amount listed in the
schedule of costs.
(b) Expenses for items that are not listed in the schedule of
costs shall be reasonable and necessary considering conditions at
the site based upon a competitive bidding process established by
the authority.
Sec. 21510c. A claim shall not be approved by the authority
for any of the following:
(a) A release that was expected or intended by an owner or
operator, or an employee of an owner or operator.
(b) Punitive, exemplary, or multiplied damages, fines, taxes,
penalties, assessments, punitive or statutory assessments, or any
civil, administrative, or criminal fines, sanctions, or penalties.
(c) A claim made by an owner or operator against any other
person that is also an owner or operator of the refined petroleum
underground storage tank system.
(d) A release caused by, based upon, resulting from, or
attributable to the owner's or operator's intentional, knowing,
willful, or deliberate noncompliance with any statute, regulation,
ordinance, administrative complaint, notice of violation, notice
letter, executive order, or instruction of any governmental agency
or body.
(e) A release arising from the ownership, maintenance, use, or
entrustment to others of any aircraft, auto, rolling stock, or
watercraft, including loading and unloading.
(f) Costs, charges, or expenses incurred by the owner or
operator for goods supplied by the owner or operator or services
performed by the staff or employees of the owner or operator, or
its parent, subsidiary, or affiliate, unless the costs, charges, or
expenses are incurred with the prior written approval of the
authority.
(g) A release arising from any consequence, whether direct or
indirect, of war, invasion, act of a foreign enemy, act of
terrorists, hostilities, whether war has been declared or not,
civil war, rebellion, revolution, insurrection or military or
usurped power, strike, riot, or civil commotion.
(h) Costs arising out of the reconstruction, repair,
replacement, upgrading of a refined petroleum underground storage
tank system, or any other improvements and any site enhancements or
routine maintenance on, within, or under a location.
(i) Costs arising out of the removing, replacing, or recycling
of the contents of a refined petroleum underground storage tank
system.
(j) Costs, charges, or expenses incurred to investigate or
verify that a confirmed release has taken place.
(k) Costs related to the injury of an employee of the owner or
operator or its parent, subsidiary, or affiliate arising out of and
in the course of employment by the owner or operator or its parent,
subsidiary, or affiliate or performing duties related to the
conduct of the business of the owner or operator or its parent,
subsidiary, or affiliate by a spouse, child, parent, brother, or
sister of that employee. This subdivision applies whether the owner
or operator may be liable as an employer or in any other capacity
and to any obligation to share damages with or repay someone else
who must pay damages because of the injury.
(l) Any obligation of the owner or operator under worker's
compensation, unemployment compensation, or disability benefits law
or similar law.
(m) Any liability or claim for liability of others assumed by
the owner or operator under any contract or agreement, unless the
owner or operator would have been liable in the absence of the
contract or agreement.
(n) A release on, within, under, or emanating from a location
if
the release commenced subsequent to the time such the location
was sold, given away, or abandoned.
(o) Costs that have been or will be submitted to or that have
been paid pursuant to an insurance policy or policies.
(p) Costs arising from corrective actions performed in excess
of the corrective actions required to obtain a restricted closure
based on then current land use.
Sec. 21510d. If an owner or operator intends to rely on the
fund to meet financial responsibility requirements, the owner or
operator shall submit to the authority a request for a
determination that the owner or operator would be eligible for
funding under this part in the event of a release from a refined
petroleum underground storage tank system. Upon receipt of a
request under this subsection, the authority shall make a
determination and provide notice of that determination, in writing,
to the owner or operator. The notice may contain conditions for
maintenance of that eligibility. A determination under this section
is based upon a demonstration of all of the following:
(a) The owner or operator is not ineligible for funding under
section 21510(4) and (5).
(b) The refined petroleum underground storage tank or tanks
are presently in compliance with the registration and fee
requirements of part 211.
(c) The owner or operator is not the United States government.
(d) The owner or operator has financial responsibility for the
deductible amount.
Sec. 21515. (1) To receive money from the authority for
corrective
action, the an owner or operator that has received
notice from the administrator that its claim has been approved
pursuant to section 21510(8) shall follow the procedures outlined
in
this section and shall submit a claim work invoices to the
administrator containing information required by the administrator
relevant to determining compliance with this part.
(2)
An owner or operator shall not submit a claim under
subsection
(1) until work invoices in excess of the deductible
amount
have been incurred.
(2) (3)
Upon Within 45 days of receipt of a completed claim
work invoices submitted pursuant to subsection (1) using forms
created by the authority, the administrator shall make all of the
following determinations:
(a) Whether the owner or operator is eligible to receive
funding under this part.
(b) Whether the work performed or proposed to be performed is
consistent
with the requirements of part 213, and whether those
activities are consistent with achieving site closure.
(c) Whether the owner or operator has paid the deductible
amount.
(d) Whether the corrective action performed is reasonable and
necessary considering conditions at the site of the release.
(e) Whether the cost of performing the corrective action work
is at or below the allowable reimbursement amount in the schedule
of costs or, if the corrective action work is not a listed item,
whether the cost is reasonable and necessary, and whether the cost
was based upon a competitive bidding process established by the
authority.
(3) (4)
The administrator may consult with
the department and
the department of licensing and regulatory affairs to make the
determination
required in subsection (3).(2).
(4) (5)
If the administrator determines
under subsection (3)
(2)
that the work invoices included with
the claim are invoice is
reasonable and necessary considering conditions at the site of the
release and reasonable in terms of cost and the owner or operator
is eligible for funding under this part, the administrator shall
approve
the claim work invoice and notify the owner or operator who
that
submitted the claim work invoice of the approval. If the
administrator determines that the work described on the work
invoices submitted was not reasonable and necessary or the cost of
the work is not reasonable, or that the owner or operator is not
eligible for funding under this part, the administrator shall deny
the
claim work invoice or any portion of the work invoices invoice
submitted and give notice of the denial to the owner or operator
who
that submitted the claim.work invoice.
(5) (6)
The owner or operator may submit additional
work
invoices to the administrator that are related to a claim only
after
initial approval of a the claim under subsection
(5). Within
45
days after receipt of a work invoice, the administrator shall
make
the following determinations:section
21510(8) and if the
aggregate amount of work invoices in the submission is $5,000.00 or
more. This limitation does not apply to the final work invoice
submission related to the approved claim.
(a)
Whether the work invoice complies with subsection (3).
(b)
Whether the owner or operator is currently in compliance
with
the registration and fee requirements of part 211 and the
rules
promulgated under that part for the refined petroleum
underground
storage tank system from which the release occurred.
(6) (7)
If the administrator determines
that the a work
invoice
does not meet the requirements of subsection (6), (2) or
(5), the administrator shall deny reimbursement for the work
invoice and give written notice of the denial to the owner or
operator who submitted the work invoice.
(8)
The administrator shall keep records of approved work
invoices.
If the owner or operator has not exceeded the allowable
amount
of expenditure provided in section 21510(1)(i), the
administrator
shall pay the claim within 45 days of making the
determinations
under subsection (6).
(7) (9)
The administrator may shall approve
a reimbursement
for a work invoice that was submitted by an owner or operator for
corrective action taken if the work invoice meets the requirements
of this part for an approved claim and an approved work invoice.
(8) (10)
Except as provided in subsection (11)
(9) and section
21519, the authority shall make a joint payment to the owner or
operator and the contractor that performed the work listed in the
approved
work invoices within 30 45 days
after the date of the
administrator's approval under subsection (4) if sufficient money
exists in the fund. Once payment has been made under this section,
the authority is not liable for any claim on the basis of that
payment.
(9) (11)
The authority may withhold partial
payment of money
on payment vouchers if there is reasonable cause to suspect that
there are violations of section 21548 or if necessary to assure
acceptable completion of the proposed work.
(10) (12)
The authority shall prepare and
make available to
owners and operators standardized claim and work invoice forms.
Sec. 21516. (1) An owner or operator with a claim approved
pursuant
to section 21515 21510 for which corrective action is in
progress who sells or transfers the property that is the subject of
the approved claim to another person may assign or transfer the
approved claim to that other person. The person to whom the
assignment or transfer is made is eligible to receive money from
the authority as an owner or operator for the release which is the
subject of the approved claim. Allowable, outstanding approved or
paid work invoices of the owner or operator making the assignment
or transfer may be counted toward the deductible amount of the
person to whom the assignment or transfer is made.
(2) An owner or operator assigning or transferring an approved
claim pursuant to this section shall notify the administrator of
the proposed assignment or transfer at least 10 days before the
effective date of the assignment or transfer.
Sec.
21521. (1) If the administrator denies a claim, or work
invoice,
or a request for indemnification, or request for an
eligibility determination under section 21510(8), the owner or
operator
who submitted the claim, work invoice, or request for
indemnification, or request for an eligibility determination under
section 21510(8) may, within 14 days following the denial, request
review by the board. However, if the administrator believes the
dispute may be able to be resolved without the board's review, the
administrator may contact the owner or operator regarding the
issues in dispute and may negotiate a resolution of the dispute
prior to the board's review. The board shall conduct a review of
the denial to determine whether the claim, work invoice, or request
for indemnification is payable under this part.
(2) A person who is denied approval by the board after review
under subsection (1) may appeal the decision directly to the
circuit court.
Sec. 21526. Except as otherwise provided in this part, the
board of directors may do all things necessary or convenient to
implement this part and the purposes, objectives, and powers
delegated to the board of directors by other laws or executive
orders, including, but not limited to, all of the following:
(a) Adopt an official seal and bylaws for the regulation of
its affairs and alter the seal or bylaws.
(b) Sue and be sued in its own name and plead and be
impleaded.
(c) Enter into contracts and other instruments necessary,
incidental, or convenient to the performance of its duties and the
exercise of its powers.
(d) With the prior consent of the director of the department,
solicit and accept gifts, grants, loans, and other aid from any
person or the federal, state, or local government or any agency of
the federal, state, or local government, or participate in any
other way in a federal, state, or local government program.
(e) Procure insurance against loss in connection with the
property, assets, or activities of the authority.
(f)
Invest money of the authority, at the board of directors'
discretion,
in instruments, obligations, securities, or property
determined
proper by the board of directors, and name and use
depositories
for its money.
(f) (g)
Contract for goods and services and
engage personnel
as necessary and engage the services of private consultants,
managers, legal counsel, and auditors for rendering professional
financial assistance and advice, payable out of any money of the
authority.
(g) (h)
Indemnify and procure insurance
indemnifying members
of the board of directors from personal loss or accountability from
liability asserted by a person on bonds or notes of the authority,
or from any personal liability or accountability by reason of the
issuance of the bonds or notes, or by reason of any other action
taken or the failure to act by the authority.
(h) (i)
Do all other things necessary or
convenient to achieve
the objectives and purposes of the authority, this part, rules
promulgated under this part, or other laws that relate to the
purposes and responsibilities of the authority.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
