Bill Text: MI HB6201 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Natural resources; gas and oil; requirements for spill reporting and prevention response plans from straits gas or oil pipelines; modify, and provide penalties for releases of gas or oil into waters of the state. Amends secs. 3101, 3103, 3111b & 3115 of 1994 PA 451 (MCL 324.3101 et seq.) & adds secs. 3111c, 3111d, 3111e, 3115b & 3135.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-07-25 - Bill Electronically Reproduced 06/12/2018 [HB6201 Detail]

Download: Michigan-2017-HB6201-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 6201

 

 

June 12, 2018, Introduced by Reps. Chatfield, Cole, Allor and LaFave and referred to the Committee on Michigan Competitiveness.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 3101, 3103, 3111b, and 3115 (MCL 324.3101,

 

324.3103, 324.3111b, and 324.3115), section 3101 as amended by 2015

 

PA 247, section 3103 as amended by 2005 PA 33, section 3111b as

 

added by 2004 PA 142, and section 3115 as amended by 2004 PA 143,

 

and by adding sections 3111c, 3111d, 3111e, 3115b, and 3135.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101. As used in this part:

 

     (a) "Aquatic nuisance species" means a nonindigenous species

 

that threatens the diversity or abundance of native species or the

 

ecological stability of infested waters, or commercial,

 

agricultural, aquacultural, or recreational activities dependent on

 

such these waters.

 


     (b) "Ballast water" means water and associated solids taken on

 

board a vessel to control or maintain trim, draft, stability, or

 

stresses on the vessel, without regard to the manner in which it is

 

carried.

 

     (c) "Ballast water treatment method" means a method of

 

treating ballast water and sediments to remove or destroy living

 

biological organisms through 1 or more of the following:

 

     (i) Filtration.

 

     (ii) The application of biocides or ultraviolet light.

 

     (iii) Thermal methods.

 

     (iv) Other treatment techniques approved by the department.

 

     (d) "Department" means the department of environmental

 

quality.

 

     (e) "Detroit consumer price index" Consumer Price Index" means

 

the most comprehensive index of consumer prices available for the

 

Detroit area from the United States Department of Labor, Bureau of

 

Labor Statistics.

 

     (f) "Emergency management coordinator" means that term as

 

defined in section 2 of the emergency management act, 1976 PA 390,

 

MCL 30.402.

 

     (g) "Gas" means that term as defined in section 61501.

 

     (h) (g) "Great Lakes" means the Great Lakes and their

 

connecting waters, including Lake St. Clair.

 

     (i) (h) "Group 1 facility" means a facility whose discharge is

 

described by R 323.2218 of the Michigan administrative

 

code.Administrative Code.

 

     (j) (i) "Group 2 facility" means a facility whose discharge is


described by R 323.2210(y), R 323.2215, or R 323.2216 of the

 

Michigan administrative code. Administrative Code. Group 2 facility

 

does not include a Group 2a facility.

 

     (k) (j) "Group 2a facility" means a facility whose discharge

 

is described by R 323.2210(y) or R 323.2215 of the Michigan

 

administrative code Administrative Code and that meets 1 or more of

 

the following:

 

     (i) The facility's discharge is from a coin-operated

 

laundromat.

 

     (ii) The facility's discharge is from a car wash or vehicle

 

wash open to the public.

 

     (iii) The facility's discharge is a subsurface sanitary

 

discharge of fewer than 10,000 gallons per day that does not meet

 

the terms for authorization under R 323.2211(a) of the Michigan

 

administrative code.Administrative Code.

 

     (iv) The facility's discharge is a seasonal sanitary discharge

 

from a public park, public or private recreational vehicle park or

 

campground, or recreational or vacation camp.

 

     (l) (k) "Group 3 facility" means a facility whose discharge is

 

described by R 323.2211 or R 323.2213 of the Michigan

 

administrative code.Administrative Code.

 

     (m) (l) "Local health department" means that term as defined

 

in section 1105 of the public health code, 1978 PA 368, MCL

 

333.1105.

 

     (n) (m) "Local unit" means a county, city, village, or

 

township or an agency or instrumentality of any of these entities.

 

     (o) (n) "Municipality" means this state, a county, city,


village, or township, or an agency or instrumentality of any of

 

these entities.

 

     (p) (o) "National response center" means the National

 

Communications Center established under the clean water act,

 

federal water pollution control act, 33 USC 1251 to 1387, 1388,

 

located in Washington, DC, that receives and relays notice of oil

 

discharge or releases of hazardous substances to appropriate

 

federal officials.

 

     (q) (p) "Nonoceangoing vessel" means a vessel that is not an

 

oceangoing vessel.

 

     (r) (q) "Oceangoing vessel" means a vessel that operates on

 

the Great Lakes or the St. Lawrence waterway Waterway after

 

operating in waters outside of the Great Lakes or the St. Lawrence

 

waterway.Waterway.

 

     (s) "Oil" means that term as defined in section 61501.

 

     (t) (r) "Open water disposal of contaminated dredge materials"

 

means the placement of dredge materials contaminated with toxic

 

substances as defined in R 323.1205 of the Michigan administrative

 

code Administrative Code into the open waters of the waters of the

 

state but does not include the siting or use of a confined disposal

 

facility designated by the United States Army Corps of Engineers or

 

beach nourishment activities utilizing uncontaminated materials.

 

     (u) (s) "Primary public safety answering point" means that

 

term as defined in section 102 of the emergency telephone service

 

enabling act, 1986 PA 32, MCL 484.1102.

 

     (v) "Public vessel" means a vessel owned or bareboat chartered

 

and operated by the United States, or by a state or a political


subdivision of a state, or by a foreign nation, except when the

 

vessel is engaged in commerce.

 

     (w) "Release" includes, but is not limited to, any spilling,

 

leaking, pumping, pouring, emitting, emptying, discharging,

 

injecting, escaping, leaching, dumping, or disposing of oil into

 

the environment, or the abandonment of a facility or vessel

 

containing oil from which oil may enter the environment.

 

     (x) (t) "Sediments" means any matter settled out of ballast

 

water within a vessel.

 

     (y) (u) "Sewage sludge" means sewage sludge generated in the

 

treatment of domestic sewage, other than only septage or industrial

 

waste.

 

     (z) (v) "Sewage sludge derivative" means a product for land

 

application derived from sewage sludge that does not include solid

 

waste or other waste regulated under this act.

 

     (aa) "Sewage sludge distributor" means a person who applies,

 

markets, or distributes, except at retail, a sewage sludge

 

derivative.

 

     (bb) (w) "Sewage sludge generator" means a person who

 

generates sewage sludge that is applied to land.

 

     (x) "Sewage sludge distributor" means a person who applies,

 

markets, or distributes, except at retail, a sewage sludge

 

derivative.

 

     (cc) "Straits gas or oil pipeline" means an intrastate

 

pipeline or portion of an interstate pipeline used to transport gas

 

or oil, or both, through the Straits of Mackinac.

 

     (dd) (y) "St. Lawrence waterway" means the St. Lawrence River,


the St. Lawrence Seaway, and the Gulf of St. Lawrence.

 

     (ee) (z) "Threshold reporting quantity" means that term as

 

defined in R 324.2002 of the Michigan administrative

 

code.Administrative Code.

 

     (ff) "Vessel" means every description of watercraft or other

 

artificial contrivance used, or capable of being used, as a means

 

of transportation on water, other than a public vessel.

 

     (gg) (aa) "Waters of the state" means groundwaters, lakes,

 

rivers, and streams and all other watercourses and waters,

 

including the Great Lakes, within the jurisdiction of this state.

 

     Sec. 3103. (1) The department shall protect and conserve the

 

water resources of the state and shall have control of the

 

pollution of surface or underground waters of the state and the

 

Great Lakes, which are or may be affected by waste disposal of any

 

person. The department may make or cause to be made surveys,

 

studies, and investigations of the uses of the waters of the state,

 

both surface and underground, and cooperate with other governments

 

and governmental units and agencies in making the surveys, studies,

 

and investigations. The department shall assist in an advisory

 

capacity a flood control district that may be authorized by the

 

legislature. law. The department, in the public interest, shall

 

appear and present evidence, reports, and other testimony during

 

the hearings involving the creation and organization of flood

 

control districts. The department shall advise and consult with the

 

legislature on the obligation of the this state to participate in

 

the costs of construction and maintenance as provided for in the

 

official plans of a flood control district or intercounty drainage


district.

 

     (2) The department shall enforce this part and may promulgate

 

rules as it considers necessary to carry out its duties under this

 

part. However, notwithstanding any rule-promulgation authority that

 

is provided in this part, except for rules authorized under section

 

sections 3112(6), 3111d, and 3111e, the department shall not

 

promulgate any additional rules under this part after December 31,

 

2006.

 

     (3) The department may promulgate rules and take other actions

 

as may be necessary to comply with the federal water pollution

 

control act, 33 USC 1251 to 1387, 1388, and to expend funds

 

available under such that law for extension or improvement of the

 

state this state's or an interstate program for prevention and

 

control of water pollution. This part shall not be construed as

 

authorizing does not authorize the department to expend or to incur

 

any obligation to expend any state funds for such purpose in excess

 

of any amount that is appropriated. by the legislature.

 

     (4) Notwithstanding the limitations on rule promulgation under

 

subsection (2), rules promulgated under this part before January 1,

 

2007 shall remain in effect unless rescinded.

 

     Sec. 3111b. (1) If a person is required to report a release to

 

the department under part 5 of the water resources protection

 

rules, R 324.2001 to R 324.2009 of the Michigan administrative

 

code, Administrative Code, or section 3111c, the person, via a 9-1-

 

1 call, shall at the same time report the release to the primary

 

public safety answering point serving the jurisdiction where the

 

release occurred.


     (2) If a person described in subsection (1) is required to

 

subsequently submit to the department a written report on the

 

release under part 5 of the water resources protection rules, R

 

324.2001 to R 324.2009 of the Michigan administrative code,

 

Administrative Code, or section 3111c, the person shall at the same

 

time submit a copy of the report to the local health department

 

serving the jurisdiction where the release occurred.

 

     (3) If the department of state police or other state agency

 

receives notification, pursuant to an agreement with or the laws of

 

another state, Canada, or the province of Ontario, of the release

 

in that other jurisdiction of a polluting material in excess of the

 

threshold reporting quantity and if the polluting material has

 

entered or may enter surface waters or groundwaters of this state,

 

the department of state police or other state agency shall contact

 

the primary public safety answering point serving each county that

 

may be affected by the release.

 

     (4) The emergency management coordinator of each county shall

 

develop and oversee the implementation of a plan to provide timely

 

notification of a release required to be reported under subsection

 

(1) or (3) to appropriate local, state, and federal agencies. In

 

developing and overseeing the implementation of the plan, the

 

emergency management coordinator shall consult with both of the

 

following:

 

     (a) The directors of the primary public safety answering

 

points with jurisdiction within the county.

 

     (b) Any emergency management coordinator appointed for a city,

 

village, or township located in that county.


     (5) If rules promulgated under this part require a person to

 

maintain a pollution incident prevention plan, the person shall

 

update the plan to include the requirements of subsections (1) and

 

(2) when conducting any evaluation of the plan required by rule.

 

     (6) If a person reports to the department a release pursuant

 

to subsection (1), the department shall do both of the following:

 

     (a) Notify the person of the requirements imposed under

 

subsections (1) and (2).

 

     (b) Request that the person, even if not responsible for the

 

release, report the release, via a 9-1-1 call, to the primary

 

public safety answering point serving 1 of the following, as

 

applicable:

 

     (i) The jurisdiction where the release occurred, if known.

 

     (ii) The jurisdiction where the release was discovered, if the

 

jurisdiction where the release occurred is not known.

 

     (7) The department shall notify the public and interested

 

parties, by posting on its website within 30 days after the

 

effective date of the amendatory act that added this section and by

 

other appropriate means, of all of the following:

 

     (a) The requirements of subsections (1) and (2).

 

     (b) The relevant voice, and, if applicable, facsimile

 

telephone numbers of the department and the national response

 

center.

 

     (c) The criminal penalties and civil sanctions remedies under

 

section 3115 applicable to violations of subsections (1) and (2).

 

     (8) Failure of the department to provide a person with the

 

notification required under subsection (6) or (7) does not relieve


the person of any obligation to report a release or other legal

 

obligation.

 

     (9) The department shall biennially do both of the following:

 

     (a) Evaluate the state and local reporting system established

 

under this section.

 

     (b) Submit to the standing committees of the senate and house

 

of representatives with primary responsibility for environmental

 

protection issues a written report on any changes recommended to

 

the reporting system.

 

     Sec. 3111c. (1) A person that is an owner, operator, or

 

manager of a straits gas or oil pipeline from which a release

 

occurs, and a person who causes a release, shall immediately notify

 

the department of the release by contacting the department's

 

pollution emergency alert system or by other means required by the

 

department.

 

     (2) Within 10 days after a release, or a shorter period

 

required by the department, a person required to report a release

 

under subsection (1) shall submit an initial written report to the

 

department outlining the cause of the release, discovery of the

 

release, and either the response measures taken or a schedule for

 

completion of measures to be taken, or both, to prevent recurrence

 

of similar releases.

 

     (3) This section does not do either of the following:

 

     (a) Alter any other existing statute, rule, or requirement

 

pertaining to straits gas or oil pipelines or pollution of the

 

waters of the state.

 

     (b) Relieve any person from any reporting requirement imposed


under state or federal law or regulation.

 

     Sec. 3111d. (1) The owner or operator of a straits gas or oil

 

pipeline shall prepare and submit to the department for review and

 

approval a spill prevention plan for that pipeline in conformance

 

with this section and the rules promulgated under this section.

 

     (2) An initial spill prevention plan must be submitted to the

 

department not later than 180 days after the effective date of the

 

amendatory act that added this section. A spill prevention plan may

 

be consolidated with a contingency plan submitted under section

 

3111e. The department may accept plans prepared to comply with

 

other state or federal law as spill prevention plans to the extent

 

those plans comply with this section. The department, by rule, may

 

establish additional standards for spill prevention plans.

 

     (3) As an interim measure, the owner or operator of a straits

 

gas or oil pipeline shall, not later than 30 days after the

 

effective date of the amendatory act that added this section,

 

submit to the department a copy of each existing spill prevention

 

plan or procedure used to prevent spills from the pipeline.

 

     (4) A spill prevention plan for a straits gas or oil pipeline

 

required under this section must, at a minimum, include all of the

 

following:

 

     (a) Full details of the method of response to spills of

 

various sizes from any pipeline covered by the spill prevention

 

plan.

 

     (b) Documentation of compliance with the oil pollution act of

 

1990, 33 USC 2701 to 2762, and financial responsibility

 

requirements under federal and state law.


     (c) A certification that supervisory and other key personnel

 

in charge of the pipeline have been properly trained.

 

     (d) A certification that the pipeline has an operations

 

manual.

 

     (e) A certification of the implementation of alcohol and drug

 

use awareness programs for personnel in charge of the pipeline.

 

     (f) A description of the pipeline's maintenance and inspection

 

program and the current maintenance and inspection record of the

 

pipeline.

 

     (g) A description of the spill prevention technology that has

 

been installed, including leak detection systems and alarms, and

 

automatic shut-off valves, with a map or other figure accurately

 

depicting the locations of the spill prevention technology.

 

     (h) A description of any releases of gas or oil from the

 

pipeline to the land or the waters of the state in the prior 5

 

years and the measures taken to prevent a reoccurrence.

 

     (i) Provisions for the incorporation into the pipeline during

 

the period covered by the plan of identified measures that will

 

provide the best achievable protection for the public health and

 

the environment, with a schedule for implementation.

 

     (j) Any other information reasonably necessary to carry out

 

the purposes of this section as required by rules promulgated by

 

the department.

 

     (5) To support the department's administration of this

 

section, an owner or operator of a straits gas or oil pipeline that

 

submits a spill prevention plan for departmental review and

 

approval shall submit with the spill prevention plan a review fee


of $12,500.00 for each geographic plan area or sub-area established

 

by the United States Coast Guard and the United States

 

Environmental Protection Agency that is covered in the spill

 

prevention plan. Beginning 3 years after the effective date of the

 

amendatory act that added this section, the state treasurer shall

 

annually adjust the fee under this subsection for inflation based

 

upon changes in the Detroit Consumer Price Index in the preceding

 

period. The department shall forward fees collected under this

 

subsection to the state treasurer for deposit into the gas and oil

 

pipeline fund created in section 3135.

 

     (6) The department shall approve a spill prevention plan only

 

if the plan provides the best achievable protection from spill

 

damages caused by the discharge of oil into the waters of the state

 

and if the department determines that the plan meets the

 

requirements of this section and rules promulgated by the

 

department.

 

     (7) If the department finds that the spill prevention plan

 

submitted under this section does not meet the requirements of this

 

section and any applicable rules promulgated by the department, the

 

department shall notify the owner or operator of the straits gas or

 

oil pipeline of its findings in writing, identifying the provisions

 

of the plan that are incomplete or inadequate. The owner or

 

operator shall modify the spill prevention plan and resubmit an

 

approvable plan to the department within 30 days after the

 

department's notification, unless the department authorizes, in

 

writing, a longer response period.

 

     (8) Upon approval of a spill prevention plan, the department


shall provide to the owner or operator of the straits gas or oil

 

pipeline submitting the plan a statement indicating that the plan

 

has been approved for the pipelines covered by the plan and

 

containing other information the department determines should be

 

included.

 

     (9) A spill prevention plan approved under this section is

 

valid for 5 years. An owner or operator of a straits gas or oil

 

pipeline shall notify the department in writing immediately of any

 

significant change of which the owner or operator is aware

 

affecting the spill prevention plan, including changes in any

 

factor set forth in this section or in rules promulgated by the

 

department. The department may require the owner or operator to

 

update a spill prevention plan as a result of the changes

 

identified in the notification from the owner or operator, or if

 

the department independently identifies changed circumstances

 

warranting an update.

 

     (10) The owner or operator of a straits gas or oil pipeline

 

shall review, update, if necessary, and resubmit the spill

 

prevention plan to the department at least once every 5 years or

 

within 60 days after receipt of a request from the department.

 

     (11) Approval of a spill prevention plan by the department

 

does not constitute an assurance regarding the adequacy of the plan

 

or constitute a defense to liability imposed under this part or

 

other state law.

 

     (12) The content of a spill prevention plan prepared under

 

this section is exempt from disclosure under the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246.


     Sec. 3111e. (1) The owner or operator of a straits gas or oil

 

pipeline shall submit to the department for review and approval a

 

contingency plan for the containment and cleanup of gas or oil

 

spills from the pipeline into the waters of the state and for the

 

protection of fisheries and wildlife, natural resources, and public

 

and private property from these spills in conformance with this

 

section and the rules promulgated under this section.

 

     (2) The owner or operator of a straits gas or oil pipeline

 

shall submit an initial contingency plan to the department not

 

later than 180 days after the effective date of the amendatory act

 

that added this section. The contingency plan may be consolidated

 

with a spill prevention plan submitted under section 3111d. The

 

department may accept plans prepared to comply with other state or

 

federal law as contingency or response plans to the extent those

 

plans comply with this section.

 

     (3) As an interim measure, the owner or operator of a straits

 

gas or oil pipeline shall, not later than 30 days after the

 

effective date of the amendatory act that added this section,

 

submit to the department a copy of each existing contingency or

 

spill response plan established for the pipeline.

 

     (4) A contingency plan required under this section must be

 

designed to ensure that that the owner or operator of a straits gas

 

or oil pipeline is capable in terms of personnel, materials, and

 

equipment, of promptly and properly, to the maximum extent

 

practicable, removing gas or oil, or both, and minimizing any

 

damage to the environment resulting from a worst-case spill and at

 

a minimum must include all of the following:


     (a) Full details of the method of response to spills of

 

various sizes from any oil facility that is covered by the plan.

 

     (b) A clear, precise, and detailed description of how the plan

 

relates to, and is integrated into, relevant contingency plans that

 

have been prepared or approved by this state and the federal

 

government.

 

     (c) Procedures for early detection of gas or oil spills and

 

timely notification of gas or oil spills to appropriate federal,

 

state, and local authorities under applicable state and federal

 

law.

 

     (d) The number, training preparedness, and qualifications of

 

all dedicated, prepositioned personnel assigned to direct and

 

implement the plan.

 

     (e) Provisions for periodic training and drill programs to

 

evaluate whether personnel and equipment provided under the plan

 

are in a state of operational readiness at all times.

 

     (f) A description of the means of protecting and mitigating

 

effects on the environment, including fish, aquatic life, and other

 

wildlife, and ensuring that implementation of the plan does not

 

pose unacceptable risks to the public or the environment.

 

     (g) Provisions for the prepositioning of gas or oil spill

 

containment and cleanup equipment and trained personnel at

 

strategic locations from which they can be deployed to the spill

 

site to promptly and properly remove the spilled gas or oil.

 

     (h) Provisions for enlisting the use of qualified and trained

 

cleanup personnel to implement the plan.

 

     (i) Provisions for the disposal of recovered spilled gas or


oil in accordance with local, state, and federal laws.

 

     (j) The amount and type of equipment available to respond to a

 

spill, the equipment location, and the extent to which other

 

contingency plans rely on the same equipment.

 

     (k) Identification of the individual or individuals

 

responsible for supervising plan implementation and the owner's and

 

operator's designated point of contact for communication with the

 

department and other state, federal, tribal, and local officials if

 

a spill occurs.

 

     (l) The procedures to be used to notify state, federal,

 

tribal, and local officials of a spill and the response actions

 

taken.

 

     (5) To support the department's administration of this

 

section, an owner or operator of a straits gas or oil pipeline that

 

submits a contingency plan for departmental review and approval

 

shall submit with the contingency plan a review fee of $12,500.00

 

for each geographic plan area or sub-area established by the United

 

States Coast Guard and the United States Environmental Protection

 

Agency that is covered in the contingency plan. Beginning 3 years

 

after the effective date of the amendatory act that added this

 

section, the state treasurer shall adjust the fee under this

 

section for inflation based upon changes in the Detroit Consumer

 

Price Index. The department shall forward fees collected under this

 

section to the state treasurer for deposit into the gas and oil

 

pipeline fund created in section 3135.

 

     (6) The department may accept as a contingency plan under this

 

section a contingency plan prepared for an agency of the federal


government or another state if it satisfies the requirements of

 

this section and rules promulgated by the department. The

 

department shall ensure that, to the greatest extent possible,

 

requirements for contingency plans under this section are

 

consistent with the requirements for corresponding contingency

 

plans under federal law.

 

     (7) In reviewing the contingency plans required under this

 

section, the department shall, at a minimum, consider all of the

 

following factors:

 

     (a) The adequacy of containment and cleanup equipment,

 

personnel, communications equipment, notification procedures and

 

call down lists, response time, and logistical arrangements for

 

coordination and implementation of response efforts to remove gas

 

or oil spills promptly and properly and to protect the environment.

 

     (b) The volume and type of gas or oil being transported within

 

the area covered by the plan.

 

     (c) The history and circumstances surrounding prior gas or oil

 

spills within the area covered by the plan.

 

     (d) The sensitivity of fisheries, aquatic life, and wildlife

 

and other natural resources within the area covered by the plan.

 

     (e) The extent to which reasonable, cost-effective measures to

 

reduce the likelihood that a spill will occur and to minimize the

 

impact of a spill have been incorporated into the plan.

 

     (8) The department shall approve a contingency plan submitted

 

under this section only if it determines that the plan meets the

 

requirements of this section and the rules promulgated under this

 

section and that, if implemented, the plan includes personnel,


materials, and equipment, capable of removing gas or oil promptly

 

and properly and minimizing any damage to the environment.

 

     (9) If the department finds that a contingency plan submitted

 

under this section does not meet the requirements of this section

 

and any applicable rules, the department shall notify the owner or

 

operator of the straits gas or oil pipeline of its findings in

 

writing, identifying the provisions of the plan that are incomplete

 

or inadequate. The owner or operator shall modify the plan and

 

resubmit an approvable plan to the department within 30 days after

 

the department's notification, unless the department authorizes in

 

writing a longer response period.

 

     (10) A contingency plan approved under this section is valid

 

for 5 years. Upon approval of a contingency plan, the department

 

shall provide to the owner or operator of the straits gas or oil

 

pipeline submitting the plan a statement indicating that the plan

 

has been approved, the straits gas or oil pipelines covered by the

 

plan, and other information the department determines should be

 

included.

 

     (11) An owner or operator of a straits gas or oil pipeline

 

shall notify the department in writing immediately of any

 

significant change of which it is aware affecting its contingency

 

plan, including changes in any factor set forth in this section or

 

in rules promulgated by the department. The department may require

 

the owner or operator to update a contingency plan as a result of

 

the changes identified in the notification from the owner or

 

operator, or if the department independently identifies changed

 

circumstances warranting an update.


     (12) The owner or operator of a straits gas or oil pipeline

 

shall review, update, if necessary, and resubmit the contingency

 

plan to the department at least once every 5 years or within 60

 

days after receipt of a request from the department.

 

     (13) Approval of a contingency plan by the department does not

 

constitute an assurance regarding the adequacy of the plan or

 

constitute a defense to liability imposed under this part or other

 

state law.

 

     (14) The content of a contingency plan prepared under this

 

section is exempt from disclosure under the freedom of information

 

act, 1976 PA 442, MCL 15.231 to 15.246.

 

     Sec. 3115. (1) The department may request the attorney general

 

to commence a civil action for appropriate relief, including a

 

permanent or temporary injunction, for a violation of this part or

 

a provision of a permit or order issued or rule promulgated under

 

this part. An action under this subsection may be brought in the

 

circuit court for the county of Ingham or for the county in which

 

the defendant is located, resides, or is doing business. If

 

requested by the defendant within 21 days after service of process,

 

the court shall grant a change of venue to the circuit court for

 

the county of Ingham or for the county in which the alleged

 

violation occurred, is occurring, or, in the event of a threat of

 

violation, will occur. The court has jurisdiction to restrain the

 

violation and to require compliance. In addition to any other

 

relief granted under this subsection, the court, except as

 

otherwise provided in this subsection, shall impose a civil fine of

 

not less than $2,500.00 and the court may award reasonable attorney


fees and costs to the prevailing party. However, except as provided

 

in section 3115b, all of the following apply:

 

     (a) The maximum fine imposed by the court shall be court shall

 

impose a civil fine of not more than $25,000.00 per day of

 

violation.

 

     (b) For a failure to report a release to the department or to

 

the primary public safety answering point under section 3111b(1),

 

the court shall impose a civil fine of not more than $2,500.00.

 

     (c) For a failure to report a release to the local health

 

department under section 3111b(2), the court shall impose a civil

 

fine of not more than $500.00.

 

     (2) A person who at the time of the violation knew or should

 

have known that he or she discharged a substance contrary to this

 

part, or contrary to a permit or order issued or rule promulgated

 

under this part, or who intentionally makes a false statement,

 

representation, or certification in an application for or form

 

pertaining to a permit or in a notice or report required by the

 

terms and conditions of an issued permit, or who intentionally

 

renders inaccurate a monitoring device or record required to be

 

maintained by the department, is guilty of a felony and shall be

 

fined not less than $2,500.00 or more than $25,000.00 for each

 

violation. The court may impose an additional fine of not more than

 

$25,000.00 for each day during which the unlawful discharge

 

occurred. If the conviction is for a violation committed after a

 

first conviction of the person under this subsection, the court

 

shall impose a fine of not less than $25,000.00 per day and not

 

more than $50,000.00 per day of violation. Upon conviction, in


addition to a fine, the court in its discretion may sentence the

 

defendant to imprisonment for not more than 2 years or impose

 

probation upon a person for a violation of this part. With the

 

exception of the issuance of criminal complaints, issuance of

 

warrants, and the holding of an arraignment, the circuit court for

 

the county in which the violation occurred has exclusive

 

jurisdiction. However, the person shall is not be subject to the

 

penalties of this subsection if the discharge of the effluent is in

 

conformance with and obedient to a rule, order, or permit of the

 

department. In addition to a fine, the penalties under this

 

subsection, the attorney general may file a civil suit in a court

 

of competent jurisdiction to recover the full value of the injuries

 

done to the natural resources of the this state and the costs of

 

surveillance and enforcement by the this state resulting from the

 

violation.

 

     (3) Upon a finding by the court that the actions of a civil

 

defendant pose or posed a substantial endangerment to the public

 

health, safety, or welfare, the court shall impose, in addition to

 

the sanctions set forth in subsection (1), a civil fine of not less

 

than $500,000.00 and not more than $5,000,000.00.

 

     (4) Upon a finding by the court that the actions of a criminal

 

defendant pose or posed a substantial endangerment to the public

 

health, safety, or welfare, the court shall impose, in addition to

 

the penalties set forth in subsection (2), a fine of not less than

 

$1,000,000.00 and, in addition to a fine, a sentence of 5 years'

 

imprisonment.

 

     (5) To find a defendant civilly or criminally liable for


substantial endangerment under subsection (3) or (4), the court

 

shall determine that the defendant knowingly or recklessly acted in

 

such a manner as to cause a danger of death or serious bodily

 

injury and that either of the following occurred:

 

     (a) The defendant had an actual awareness, belief, or

 

understanding that his or her conduct would cause a substantial

 

danger of death or serious bodily injury.

 

     (b) The defendant acted in gross disregard of the standard of

 

care that any reasonable person should observe in similar

 

circumstances.

 

     (6) Knowledge possessed by a person other than the defendant

 

under subsection (5) may be attributable to the defendant if the

 

defendant took affirmative steps to shield himself or herself from

 

the relevant information.

 

     (7) A civil fine or other award ordered paid pursuant to this

 

section shall must do both of the following:

 

     (a) Be payable to the state of Michigan and credited to the

 

general fund.

 

     (b) Constitute a lien on any property, of any nature or kind,

 

owned by the defendant.

 

     (8) A lien under subsection (7)(b) shall take takes effect and

 

have has priority over all other liens and encumbrances except

 

those filed or recorded prior to the date of judgment only if

 

notice of the lien is filed or recorded as required by state or

 

federal law.

 

     (9) A lien filed or recorded pursuant to subsection (8) shall

 

must be terminated according to the procedures required by state or


federal law within 14 days after the fine or other award ordered to

 

be paid is paid.

 

     (10) In addition to any other method of collection, any fine

 

or other award ordered paid may be recovered by right of setoff to

 

any debt owed to the defendant by the this state, of Michigan,

 

including the right to a refund of income taxes paid.

 

     Sec. 3115b. (1) This section applies to any release of gas or

 

oil, or both, from a straits gas or oil pipeline or a vessel into

 

the waters of the state and to the failure to comply with the

 

requirements of this part involving straits gas or oil pipelines.

 

     (2) The liability and remedies provided in this section are in

 

addition to and do not limit the civil and criminal liability

 

established by other applicable federal and state law, including,

 

but not limited to, liability for response activity or

 

reimbursement of response activity costs under part 201, and

 

liability for damages to natural resources and other public and

 

private property.

 

     (3) The owner, operator, or manager of a straits gas or oil

 

pipeline or a vessel from which gas or oil, or both, are released

 

into the environment where it is or may be discharged into the

 

waters of the state, and any other person responsible for an

 

activity that causes such a release is liable to the state for

 

civil fines as follows:

 

     (a) Each person liable for a release is jointly and severally

 

liable for a civil fine of not more than $37,500.00 for each day

 

that a release occurs.

 

     (b) If the release was the result of gross negligence or


willful misconduct, each person liable for the release is jointly

 

and severally liable for a civil fine of not less than $150,000.00.

 

     (4) In determining the amount of a civil fine under subsection

 

(3), the court shall consider the seriousness of the violation or

 

violations; the economic benefit to the violator, if any, resulting

 

from the violation; the degree of culpability involved; any other

 

penalty for the same incident; any history of prior violations; the

 

nature, extent, and degree of success of any efforts of the

 

violator to minimize or mitigate the effects of the release; the

 

economic impact of the fine on the violator; and any other matters

 

as justice requires.

 

     (5) The owner or operator of a straits gas or oil pipeline

 

that fails to submit, or resubmit, a spill prevention plan required

 

under section 3111d is liable for a civil fine of $1,000.00 for

 

each day of violation.

 

     (6) The owner or operator of a straits gas or oil pipeline

 

that fails to submit, or resubmit, a contingency plan required

 

under section 3111e is liable for a civil fine of $1,000.00 for

 

each day of violation.

 

     (7) Beginning 3 years after the effective date of the

 

amendatory act that added this section, the state treasurer shall

 

adjust for inflation based upon changes in the Detroit Consumer

 

Price Index the civil fine amounts specified in subsections (3),

 

(5), and (6).

 

     (8) The fees and fines payable under this section are those

 

amounts as adjusted by the state treasurer for the year in which

 

the fees are payable or the liability for civil fines arose.


     (9) Civil fines collected under this section must be forwarded

 

to the state treasurer for deposit into the gas and oil pipeline

 

fund created in section 3135.

 

     Sec. 3135. (1) The gas and oil pipeline fund is created within

 

the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the gas and oil pipeline fund. The

 

state treasurer shall direct the investment of the gas and oil

 

pipeline fund. The state treasurer shall credit to the gas and oil

 

pipeline fund interest and earnings from gas and oil pipeline fund

 

investments.

 

     (3) Money in the gas and oil pipeline fund at the close of the

 

fiscal year remains in the gas and oil pipeline fund and does not

 

lapse to the general fund.

 

     (4) The department is the administrator of the gas and oil

 

pipeline fund for auditing purposes.

 

     (5) Money from the gas and oil pipeline fund shall be used,

 

upon appropriation, only for the following purposes:

 

     (a) For activities of the department and department of

 

attorney general in investigating and bringing enforcement actions

 

for violations of sections 3111c, 3111d, 3111e, and 3115b.

 

     (b) For activities of state agencies to prevent or mitigate

 

releases of gas and oil into the environment.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

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