Bill Text: MI HB6551 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Appropriations: supplemental; funding for the home repairs and weatherization assistance programs; provide for. Creates appropriation act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-12-07 - Bill Electronically Reproduced 12/07/2022 [HB6551 Detail]
Download: Michigan-2021-HB6551-Introduced.html
HOUSE BILL NO. 6551
A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2023; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.
the people of the state of michigan enact:
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part 1
line-item appropriations
Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year
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ending September 30, 2023, from the following funds:
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APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
1,100,100,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
1,100,100,000 |
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Federal revenues: |
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Total federal revenues |
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1,100,100,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
0 |
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(1) APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
1,000,100,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
1,000,100,000 |
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Federal revenues: |
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Total federal revenues |
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1,000,100,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
0 |
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(2) ONE-TIME APPROPRIATIONS |
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ARP - low-income whole-home retrofit fund |
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$ |
652,000,000 |
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ARP - weatherization contractor incentive and retainment pilot |
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5,000,000 |
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LIHEAP - weatherization |
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150,000,000 |
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United States Department of Energy - weatherization |
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151,200,000 |
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United States Department of Energy - weatherization technical assistance and training |
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31,900,000 |
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Whole-home retrofit program development and administration |
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10,000,000 |
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GROSS APPROPRIATION |
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$ |
1,000,100,000 |
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Appropriated from: |
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Federal revenues: |
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Coronavirus state fiscal recovery fund |
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657,000,000 |
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Infrastructure investment and jobs act |
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10,000,000 |
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LIHEAP weatherization fund |
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150,000,000 |
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United States Department of Energy weatherization fund |
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183,100,000 |
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State general fund/general purpose |
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$ |
0 |
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(1) APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
50,000,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
50,000,000 |
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Federal revenues: |
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Total federal revenues |
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50,000,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
0 |
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(2) ONE-TIME APPROPRIATIONS |
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ARP - workforce attraction, training, and retention |
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$ |
50,000,000 |
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GROSS APPROPRIATION |
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$ |
50,000,000 |
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Appropriated from: |
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Federal revenues: |
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Coronavirus state fiscal recovery fund |
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50,000,000 |
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State general fund/general purpose |
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$ |
0 |
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(1) APPROPRIATION SUMMARY |
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GROSS APPROPRIATION |
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$ |
50,000,000 |
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Interdepartmental grant revenues: |
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Total interdepartmental grants and intradepartmental transfers |
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0 |
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ADJUSTED GROSS APPROPRIATION |
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$ |
50,000,000 |
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Federal revenues: |
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Total federal revenues |
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50,000,000 |
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Special revenue funds: |
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Total local revenues |
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0 |
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Total private revenues |
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0 |
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Total other state restricted revenues |
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0 |
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State general fund/general purpose |
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$ |
0 |
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(2) ONE-TIME APPROPRIATIONS |
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ARP - energy waste reduction programs |
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$ |
50,000,000 |
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GROSS APPROPRIATION |
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$ |
50,000,000 |
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Appropriated from: |
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Federal revenues: |
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Coronavirus state fiscal recovery fund |
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50,000,000 |
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State general fund/general purpose |
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$ |
0 |
part 2
provisions concerning appropriations
general sections
Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2023 is $0.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 203. Federal funds appropriated in part 1 must be allocated and expended in a manner consistent with federal rules and regulations.
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Sec. 204. Funds appropriated in part 1 are subject to applicable federal audit and reporting requirements. Prompt action must be taken if instances of noncompliance are identified, including noncompliance identified in an audit finding. If any instance of noncompliance is identified, including noncompliance identified in an audit finding, the state budget director shall take necessary and immediate action to rectify it. The state budget director shall notify the senate and house appropriations committees and the senate and house fiscal agencies when an instance of noncompliance is identified.
Sec. 205. The state budget director must report on the status of funds appropriated in part 1, and all funds appropriated related to the coronavirus relief effort, to the senate and house appropriations committees and the senate and house fiscal agencies on a monthly basis until all funds are exhausted.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Sec. 301. (1) Subject to section 307, funds appropriated in part 1 for ARP – low-income whole-home retrofit fund must be used to implement a whole-home retrofit program for low-income renters and homeowners that achieves deep energy efficiency retrofits, heating and cooling upgrades, health and safety improvements, and renewable energy systems access. Funds must be allocated as follows:
(a) $150,000,000.00 for deep energy efficiency retrofits and other measures that cumulatively reduce energy usage by at least 30%, including, but not limited to, building insulation, windows, lighting and controls, and appliance upgrades. Priority must be given to projects that improve building shell insulation and air
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tightness.
(b) $200,000,000.00 for heating, cooling, and cooking electrification and energy management, including shifting water heating, building heating, and cooking systems to efficient, cold-climate heat pumps and induction stoves, installing energy recovery ventilation systems, upgrading electric panels and building wire to meet current building codes and to accommodate increased electric loads, and installing smart thermostats and other devices needed to manage building loads.
(c) $202,000,000.00 for health and safety improvements, including, but not limited to, mitigating and remediating health and safety issues such as mold, lead paint, asbestos, leaking roofs, and plumbing.
(d) $100,000,000.00 for renewable energy systems, including, but not limited to, photovoltaic and thermal solar energy, and energy storage.
(2) Prior to expending funds under subsection (1), the department of health and human services must work with the department of environment, Great Lakes, and energy, the Michigan public service commission, the Michigan state housing development authority, community action agencies, local units of government, and interested stakeholders to develop and implement a whole-home retrofit program that consolidates funding and program services in order to provide a full range of home retrofit services to low-income renters, low-income homeowners, and landlords providing below market rate and affordable housing. The program must prioritize reducing barriers to low-income renters and low-income homeowners to access all applicable funding. The program must establish economic eligibility requirements for Michigan residents
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accessing funding and make eligibility requirements and definitions of "low-income" as consistent across funding categories as possible.
(3) Unexpended funds appropriated in part 1 for ARP – low-income whole-home retrofit fund are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to implement a whole-home retrofit program for low-income renters and homeowners that achieves deep energy efficiency retrofits, heating and cooling upgrades, health and safety improvements, and renewable energy systems access.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $652,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 302. (1) Funds appropriated in part 1 for ARP – weatherization contractor incentive and retainment pilot must be used to attract and retain contractors to complete weatherization projects.
(2) Unexpended funds appropriated in part 1 for ARP – weatherization contractor incentive and retainment pilot are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this
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section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to attract and retain new contractors to complete weatherization projects.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $5,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 303. (1) Subject to section 307, funds appropriated in part 1 for whole-home retrofit program development and administration must be used for development and administration of a whole-home retrofit program. The department shall administer the program described in section 307 and coordinate this program with the department of environment, Great Lakes, and energy, the department of health and human services, the Michigan public service commission, the Michigan state housing development authority, community action agencies, and private entities, including utility companies, interested stakeholders, and Michigan Saves.
(2) Unexpended funds appropriated in part 1 for whole-home retrofit program development and administration are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is development and
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administration of a whole-home retrofit program.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $10,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 304. Unexpended funds appropriated in part 1 for LIHEAP – weatherization are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is home repairs and weatherization.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $150,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 305. Unexpended funds appropriated in part 1 for United States Department of Energy – weatherization are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is home weatherization.
(b) The project will be accomplished by utilizing state
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employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $151,200,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 306. Unexpended funds appropriated in part 1 for United States Department of Energy – weatherization technical assistance and training are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is technical assistance and training for low-income weatherization, with a focus on building shell energy efficiency and electrification.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $31,900,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 307. It is the intent of the legislature that the home repairs and weatherization projects under sections 301, 303, 304, 305, and 306 be operated as a single program tasked with conducting whole-home retrofits that address a range of energy, health, safety, and resilience upgrades for low-income housing.
Sec. 308. (1) From the funds appropriated in part 1, the department shall create and operate a responsible contractor program to ensure that contractors that work on a project funded under sections 301 to 307 meet responsible standards. As part of the responsible contractor program, the department shall establish
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a detailed application, approval, and compliance process that is also published and available on the department's website. The application must include, but is not limited to, all of the following:
(a) Disclosure of any violations of federal, state, or local law by the applicant and, if different than the applicant, the proposed principal contractor for the project, during the 5-year period immediately preceding the date of application, including, but not limited to, violations of any of the following:
(i) The Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094.
(ii) The occupational safety and health act of 1970, Public Law 91-596.
(iii) 40 USC chapter 31, subchapter IV.
(iv) The worker's disability compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941.
(v) The Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to 421.75.
(vi) The federal unemployment tax act, 26 USC chapter 23.
(vii) The improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945.
(viii) The fair labor standards act of 1938, 29 USC chapter 8.
(ix) Any other occupational safety, prevailing wage, wage and hour, worker's compensation, or unemployment compensation laws.
(b) A statement affirming that all contractors, subcontractors, employees, and other individuals working on the construction project will maintain all applicable occupational and professional licenses and registrations required by law.
(c) Verification that the applicant and, if different than the
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applicant, the proposed principal contractor for the project are in compliance with all applicable state and federal laws and visa requirements regarding the hiring of individuals who are not citizens of the United States, and disclosure of any work visas sought or obtained by the applicant, the principal contractor if different from the applicant, any subcontractor, or an employee or independent contractor of the applicant, the principal contractor, or any subcontractor, in order to perform any portion of the project.
(d) Disclosure of all litigation and arbitrations currently pending or conducted within the past 5 years involving the applicant and, if different than the applicant, the proposed principal contractor for the project, including for each proceeding a description of the parties, court or other forum, legal claims raised, damages sought, and resolution.
(e) Proof of insurance, including certificates of insurance, confirming existence and amount of coverage for liability, property damage, worker's compensation, and any other insurances required for the project.
(f) A statement affirming that the applicant and, if different than the applicant, the proposed principal contractor for the project will pay all craft employees working on the project the current wage rates and fringe benefits required under applicable federal, state, and local wage laws.
(g) A statement regarding the staffing capabilities and labor sources, including subcontractors, of the applicant and, if different than the applicant, the proposed principal contractor for the project.
(h) Verification that construction workers will not be
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misclassified as independent contractors in violation of state or federal law.
(i) A description of the project for which the funds will be expended, including tentative timelines and the estimated budget, and a statement identifying possible change orders that may be necessary and their approximate total costs.
(j) Evidence of equal employment opportunity programs for minorities, women, veterans, returning citizens, and small businesses maintained by the applicant and, if different than the applicant, the proposed principal contractor for the project.
(2) The department shall execute a responsible contractor agreement with each recipient of funding. The responsible contractor agreement must include, but is not limited to, all of the following:
(a) All necessary identifying information for the recipient, including any necessary tax identification information.
(b) A description of the project for which the funds will be expended, including tentative timelines and the estimated budget, and a statement identifying possible change orders that may be necessary and their approximate total costs.
(c) A requirement that the recipient update the information provided under subsection (1) if new information becomes available.
(d) A requirement that the recipient comply with all affirmations, verifications, and other representations made under subsection (1).
(e) If the proposed principal contractor for the project is different than the recipient, a requirement that the recipient ensure that the principal contractor will do all of the following:
(i) Update the information provided under subsection (1) if new
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information becomes available.
(ii) Comply with all affirmations, verifications, and other representations made under subsection (1).
(iii) Provide the recipient with all information necessary for the recipient to comply with the recipient's duties under the responsible contractor agreement and this act.
(iv) Allow audit and site visits of the project by the department under subsection (3).
(f) A requirement for quarterly reports from the recipient to the department that provide the status of the project and an accounting of all funds expended by the recipient.
(g) A requirement that the recipient comply with subsection (3).
(h) A clawback provision if the recipient fails to comply with the agreement or otherwise misuses the funds.
(3) The recipient of funding shall respond to all reasonable information requests from the department related to expenditures of the funding and the status of the project and retain records regarding these items for a period of not less than 3 years. The project may be subject to audit and site visits as determined by the department.
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 401. (1) Except as otherwise provided in subsection (2), funds appropriated in part 1 for ARP – workforce attraction, training, and retention must be used to establish a grant program for providing grant awards to employers to be used for on-the-job training in the construction and building sector for single and multifamily housing and for retention of apprentice and skilled
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laborers. Priority must be given to BIPOC candidates and contractors.
(2) From the funds appropriated in part 1 for ARP – workforce attraction, training, and retention, $5,000,000.00 must be used to fund a contractor decarbonization accelerator to educate contractors and builders on building efficient, electrified housing. Priority must be given to BIPOC candidates and contractors.
(3) Unexpended funds appropriated in part 1 for ARP – workforce attraction, training, and retention are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to attract, train, and retain apprentice and skilled laborers in the construction and building sector for single and multifamily housing.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $50,000,000.00.
(d) The tentative completion date is September 30, 2027.
(4) As used in this section, "BIPOC" means black, indigenous, and people of color.
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
Sec. 501. (1) Funds appropriated in part 1 for ARP – energy waste reduction programs must be used by the Michigan public
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service commission to ensure energy retrofit projects done under utility programs are fully covered for low-income customers. The funding must be used to expand services to low-income customers not to replace existing or committed utility energy waste reduction funding for low-income customers.
(2) Unexpended funds appropriated in part 1 for ARP – energy waste reduction programs are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the project under this section until the project has been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project to ensure energy retrofit projects done under utility programs are fully covered for low-income customers.
(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $50,000,000.00.
(d) The tentative completion date is September 30, 2027.
