Bill Text: MI SB0768 | 2023-2024 | 102nd Legislature | Engrossed

Michigan Senate Bill 768

Bill Title: Appropriations: department of environment, Great Lakes, and energy; appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-05-14 - Placed On Second Reading [SB0768 Detail]

Download: Michigan-2023-SB0768-Engrossed.html

Substitute For

SENATE BILL NO. 768

A bill to make appropriations for the department of environment, Great Lakes, and energy for the fiscal year ending September 30, 2025; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:

part 1

line-item appropriations

Sec. 101. There is appropriated for the department of environment, Great Lakes, and energy for the fiscal year ending September 30, 2025 from the following funds:

DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY
APPROPRIATION SUMMARY

Full-time equated unclassified positions	6.0
Full-time equated classified positions	1,621.0
GROSS APPROPRIATION		$	1,029,548,400
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			4,085,900
ADJUSTED GROSS APPROPRIATION		$	1,025,462,500
Federal revenues:
Total federal revenues			463,788,900
Special revenue funds:
Total local revenues			0
Total private revenues			1,364,200
Total other state restricted revenues			307,149,300
State general fund/general purpose		$	253,160,100
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	106.0
Unclassified salaries--FTE positions	6.0	$	964,100
Accounting service center			1,487,100
Administrative hearings officers			906,600
Environmental investigations--FTEs	12.0		2,419,800
Environmental support--FTEs	56.0		9,295,800
Executive direction--FTEs	20.0		4,459,500
Facilities management			1,000,000
Financial support--FTEs	18.0		10,347,100
Michigan geological survey			3,000,000

Property management		8,222,500
State employees retirement system implementation costs		50,000
GROSS APPROPRIATION	$	42,152,500
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police		82,700
IDG from state transportation department		108,300
Federal revenues:
Federal funds		766,700
Special revenue funds:
Private funds		711,600
Air emissions fees		1,050,700
Aquatic nuisance control fund		79,400
Campground fund		25,900
Cleanup and redevelopment fund		2,800,700
Coal ash care fund		17,100
Electronic waste recycling fund		36,200
Environmental education fund		184,100
Environmental pollution prevention fund		553,900
Fees and collections		19,800
Financial instruments		8,528,500
Great Lakes protection fund		545,400
Groundwater discharge permit fees		123,600
Infrastructure construction fund		2,700
Laboratory services fees		665,500
Land and water permit fees		198,500
Medical waste emergency response fund		36,200

Metallic mining surveillance fee revenue		5,800
Mineral well regulatory fee revenue		17,100
Nonferrous metallic mineral surveillance		16,200
NPDES fees		356,900
Oil and gas regulatory fund		463,400
Orphan well fund		71,100
Public swimming pool fund		50,200
Public utility assessments		743,400
Public water supply fees		382,100
Refined petroleum fund		3,367,200
Renew Michigan fund		4,670,500
Sand extraction fee revenue		2,700
Scrap tire regulatory fund		185,800
Septage waste program fund		48,400
Settlement funds		1,500,000
Sewage sludge land application fees		74,300
Soil erosion and sedimentation control training fund		11,700
Solid waste management fund - staff account		768,800
Stormwater permit fees		185,400
Technologically enhanced naturally occurring radioactive material		34,500
Underground storage tank cleanup fund		255,400
Wastewater operator training fees		44,800
Water quality protection fund		8,700
Water use reporting fees		19,900
State general fund/general purpose	$	12,330,700
Sec. 103. WATER RESOURCES DIVISION

Full-time equated classified positions	418.0
Aquatic nuisance control program--FTEs	6.0	$	992,300
Federal - Great Lakes remedial action plan grants			583,800
Fish contaminant monitoring			316,100
Great Lakes restoration initiative--FTEs	9.0		11,267,700
Groundwater data collection--FTEs	3.0		2,013,600
Nonpoint source pollution prevention and control project program			4,083,300
Technology advancements for water monitoring			500,000
Water quality programs--FTEs	232.0		37,406,400
Water quality protection grants			100,000
Water resource programs			28,132,900
Watershed council grants			600,000
GROSS APPROPRIATION		$	85,996,100
Appropriated from:
Interdepartmental grant revenues:
IDG from state transportation department			2,037,300
Federal revenues:
Federal funds			34,924,900
Special revenue funds:
Aquatic nuisance control fund			992,300
Aquifer protection revolving fund			520,000
Environmental response fund			590,000
Groundwater discharge permit fees			2,235,600
Infrastructure construction fund			52,000
Land and water permit fees			2,450,500
NPDES fees			4,453,200

Refined petroleum fund			456,000
Sewage sludge land application fees			918,900
Soil erosion and sedimentation control training fund			143,500
Stormwater permit fees			2,335,000
Wastewater operator training fees			317,400
Water pollution control revolving fund			152,500
Water quality protection fund			100,000
Water use reporting fees			350,000
State general fund/general purpose		$	32,967,000
Sec. 104. AIR QUALITY DIVISION
Full-time equated classified positions	218.0
Air quality programs--FTEs	218.0	$	36,842,200
GROSS APPROPRIATION		$	36,842,200
Appropriated from:
Federal revenues:
Federal funds			7,680,100
Special revenue funds:
Air emissions fees			10,952,600
Fees and collections			214,300
Oil and gas regulatory fund			148,700
Public utility assessments			150,000
Refined petroleum fund			2,138,500
State general fund/general purpose		$	15,558,000
Sec. 105. REMEDIATION AND REDEVELOPMENT DIVISION
Full-time equated classified positions	327.0
Contaminated site investigations, cleanup and revitalization--FTEs	327.0	$	78,302,700

Emergency cleanup actions			2,000,000
Environmental cleanup and redevelopment program			27,600,000
Superfund cleanup			9,000,000
GROSS APPROPRIATION		$	116,902,700
Appropriated from:
Federal revenues:
Federal funds			16,752,600
Special revenue funds:
Brownfield development fund			1,100,000
Clean Michigan initiative, response activities			0
Cleanup and redevelopment fund			55,122,300
Environmental response fund			1,442,100
Laboratory services fees			8,293,100
Public water supply fees			328,500
Refined petroleum fund			33,569,500
State general fund/general purpose		$	294,600
Sec. 106. UNDERGROUND STORAGE TANK AUTHORITY
Full-time equated classified positions	12.0
Underground storage tank cleanup program--FTEs	12.0	$	20,117,300
GROSS APPROPRIATION		$	20,117,300
Appropriated from:
Federal funds			0
Special revenue funds:
Private funds			0
Underground storage tank cleanup fund			20,117,300
State general fund/general purpose		$	0
Sec. 107. RENEWING MICHIGAN'S ENVIRONMENT
Full-time equated classified positions	153.0

Information Management--FTEs	22.0	$	6,139,300
Renew Michigan program--FTEs	131.0		70,495,800
GROSS APPROPRIATION		$	76,635,100
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police			6,800
IDG from state transportation department			6,300
Federal revenues:
Federal funds			5,800
Special revenue funds:
Private funds			0
Air emissions fees			65,900
Aquatic nuisance control fund			4,600
Campground fund			1,200
Cleanup and redevelopment fund			182,400
Coal ash care fund			1,000
Electronic waste recycling fund			1,100
Environmental pollution prevention fund			39,800
Fees and collections			120,200
Financial instruments			277,300
Great Lakes protection fund			1,200
Groundwater discharge permit fees			10,700
Laboratory services fees			45,000
Land and water permit fees			14,400
Medical waste emergency response fund			1,100
Mineral well regulatory fee revenue			500
Nonferrous metallic mineral surveillance			1,300
NPDES fees			24,900

Oil and gas regulatory fund		33,300
Orphan well fund		5,500
Public swimming pool fund		1,400
Public water supply fees		26,900
Refined petroleum fund		228,500
Renew Michigan fund		70,807,500
Scrap tire regulatory fund		13,200
Septage waste program fund		1,600
Sewage sludge land application fee		4,600
Soil erosion and sedimentation control training fund		200
Solid waste management fund, staff account		57,100
Stormwater permit fees		12,300
Strategic water quality initiatives fund		0
Technologically enhanced naturally occurring radioactive material		2,000
Underground storage tank cleanup fund		17,000
Wastewater operator training fees		2,800
Water quality protection fund		500
Water use reporting fees		1,100
State general fund/general purpose	$	4,608,100
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects	$	10,367,000
GROSS APPROPRIATION	$	10,367,000
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police		23,700
IDG from state transportation department		31,100

Federal revenues:
Federal funds			2,062,300
Special revenue funds:
Air emissions fees			246,800
Aquatic nuisance control fund			22,900
Campground fund			7,300
Cleanup and redevelopment fund			807,100
Coal ash care fund			5,000
Electronic waste recycling fund			10,600
Environmental pollution prevention fund			158,500
Fees and collections			5,700
Financial instruments			1,084,000
Great Lakes protection fund			11,400
Groundwater discharge permit fees			35,200
Infrastructure construction fund			800
Laboratory services fees			189,600
Land and water permit fees			56,400
Medical waste emergency response fund			10,600
Metallic mining surveillance fee revenue			1,700
Mineral well regulatory fee revenue			5,000
Nonferrous metallic mineral surveillance			5,000
NPDES fees			101,400
Oil and gas regulatory fund			131,600
Orphan well fund			20,400
Public swimming pool fund			14,800
Public utility assessments			19,600
Public water supply fees			108,600
Refined petroleum fund			961,200

Renew Michigan fund			1,386,300
Sand extraction fee revenue			800
Scrap tire regulatory fund			53,100
Septage waste program fund			13,900
Sewage sludge land application fees			21,200
Soil erosion and sedimentation control training fund			3,300
Solid waste management fund - staff account			211,700
Stormwater permit fees			53,100
Technologically enhanced naturally occurring radioactive material			9,800
Underground storage tank cleanup fund			73,600
Wastewater operator training fees			13,100
Water pollution control revolving fund			33,200
Water quality protection fund			2,400
Water use reporting fees			5,700
State general fund/general purpose		$	2,347,500
Sec. 109. DRINKING WATER AND ENVIRONMENTAL HEALTH
Full-time equated classified positions	160.0
Drinking water and environmental health--FTEs	160.0	$	37,827,200
GROSS APPROPRIATION		$	37,827,200
Appropriated from:
Federal revenues:
Federal funds			13,702,900
Special revenue funds:
Campground fund			377,500
Fees and collections			34,500

Public swimming pool fund			751,500
Public water supply fees			5,034,000
Refined petroleum fund			761,100
Septage waste program fund			618,000
Wastewater operator training fees			267,700
State general fund/general purpose		$	16,280,000
Sec. 110. MATERIALS MANAGEMENT DIVISION
Full-time equated classified positions	134.0
Energy programs--FTEs	13.0		6,278,500
Materials management programs--FTEs	121.0		24,721,800
GROSS APPROPRIATION		$	31,000,300
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police			1,566,600
Federal revenues:
Federal funds			7,281,100
Special revenue funds:
Private funds			652,600
Clean Michigan initiative, pollution prevention activities			0
Cleanup and redevelopment fund			1,072,600
Coal ash care fund			268,100
Community pollution prevention fund			250,000
Electronic waste recycling fund			333,700
Energy efficiency and renewable energy revolving loan fund			250,100
Environmental pollution prevention fund			4,110,100
Medical waste emergency response fund			454,500

Public utility assessments			1,806,200
Retired engineers technical assistance program fund			491,200
Scrap tire regulatory fund			5,008,300
Small business pollution prevention revolving loan fund			134,400
Solid waste management fund - staff account			6,117,200
Technologically enhanced naturally occurring radioactive material			458,800
State general fund/general purpose		$	744,800
Sec. 111. OIL, GAS, AND MINERALS DIVISION
Full-time equated classified positions	63.0
Oil, gas, and mineral services--FTEs	63.0	$	22,711,600
GROSS APPROPRIATION		$	22,711,600
Appropriated from:
Interdepartmental grant revenues:
IDG from department of licensing and regulatory affairs			223,100
Federal revenues:
Federal funds			5,308,500
Special revenue funds:
Metallic mining surveillance fee revenue			92,500
Mineral well regulatory fee revenue			216,000
Native copper mine fund			50,000
Nonferrous metallic mineral surveillance			385,800
Oil and gas regulatory fund			3,881,800
Orphan well fund			2,351,500
Sand extraction fee revenue			91,100

State general fund/general purpose		$	10,111,300
Sec. 112. WATER INFRASTRUCTURE
Full-time equated classified positions	30.0
Lead service line replacement		$	13,301,100
Municipal assistance--FTEs	30.0		11,695,300
Water state revolving funds			424,000,000
GROSS APPROPRIATION		$	448,996,400
Appropriated from:
Federal revenues:
Federal funds			375,304,000
Special revenue funds:
Revolving loan revenue bonds			15,000,000
Water pollution control revolving fund			774,300
State general fund/general purpose		$	57,918,100
Sec. 113. ONE-TIME APPROPRIATIONS
Clean fleets		$	10,000,000
Clean fuel and charging infrastructure			15,000,000
Drinking water infrastructure			25,000,000
Sediment removal project			25,000,000
Water infrastructure initiative			10,000,000
Water state revolving fund investment			15,000,000
GROSS APPROPRIATION		$	100,000,000
Appropriated from:
Federal revenues:
Federal funds			0
Special revenue funds:
State general fund/general purpose		$	100,000,000

part 2

provisions concerning appropriations

for fiscal year 2024-2025

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2025, total state spending under part 1 from state resources is $560,309,400.00 and state spending under part 1 from state sources to be paid to local units of government is $85,633,100.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY
Brownfield grants	$	1,000,000
Drinking water infrastructure		25,000,000
Drinking water and environmental health		8,786,000
Emergency cleanup actions		116,000
Energy programs		460,000
Lead service line replacement		13,301,100
Material management programs		1,270,000
Municipal assistance		5,000,000
Renew Michigan program		20,000,000
Water quality programs		200,000
Technology advancements for water monitoring		500,000
Water infrastructure initiative		10,000,000
TOTAL	$	85,633,100

Sec. 202. The appropriations 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. As used in this part and part 1:

(a) "Department" means the department of environment, Great Lakes, and energy.

(b) "Director" means the director of the department.

(d) "IDG" means interdepartmental grant.

(e) "NPDES" means the national pollutant discharge elimination

system.

(f) "Standard report recipients" means the senate appropriations subcommittee on environment, Great Lakes, and energy; the house appropriations subcommittee on environment, Great Lakes, and energy; the senate and house fiscal agencies; the senate and house policy offices; and the state budget office.

Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the required recipients and any other required report recipients by email and posting the reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to the expenditure of funds appropriated in part 1:

(a) The funds must not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and

operated by veterans, if they are competitively priced and of comparable quality.

Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the standard report recipients and to the senate and house appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and other revenues.

Sec. 208. The department shall make timely reimbursement to the department of the attorney general for legal services provided by the department of the attorney general to the department. If the department fails to make timely reimbursement, the department of the attorney general may increase the amount billed to include a penalty for late reimbursement. As used in this section, "timely reimbursement" means reimbursement not later than 60 days after the

department receives a bill for the legal services from the department of the attorney general.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000,000.00 for federal contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $83,000,000.00 for state restricted contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for the department:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 214. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of a local health officer.

Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically-disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified geographically-disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically-disadvantaged business enterprises" means that term

as defined in Executive Directive 2019-08.

Sec. 216. On a quarterly basis, the department shall report on the number of full-time equated positions in pay status by civil service classification, including a comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department at the end of the reporting period. The report must be submitted to the standard report recipients and the senate and house appropriations committees.

Sec. 219. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 220. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the previous calendar year. The department shall submit the report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.

Sec. 221. (1) From the funds appropriated in part 1, the department shall do the following:

(a) Report any amounts of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Not later than February 1, report on the total amount of severance pay remitted to former department employees during the previous fiscal year and the total number of former department employees that were remitted severance pay during the previous fiscal year.

(2) Reports required by this section must be submitted to the standard report recipients and to the senate and house appropriations committees.

(3) As used in this section, "severance pay" means compensation that is both payable or paid on the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 222. To the extent possible, the department shall not expend appropriations in part 1 until all existing authorized work project funds available for the same purposes are exhausted.

Sec. 227. (1) The department may expend amounts remaining from the current and prior fiscal year appropriations to meet funding needs of the environmental cleanup and redevelopment program, environmental cleanup support, contaminated site cleanup, contaminated site cleanup contingency reserve, premcor remediation activities, PFAS remediation grant program the renew Michigan program, the refined petroleum product cleanup program, brownfield grants and loans, waterfront grants, and the environmental bond site reclamation program.

(2) Unexpended and unencumbered amounts remaining from appropriations from the clean Michigan initiative fund - response activities contained in 2011 PA 63, 2013 PA 59, 2014 PA 252, 2015 PA 84, 2016 PA 268, and 2017 PA 107, are appropriated for

expenditure.

(3) Unexpended and unencumbered amounts remaining from appropriations from the refined petroleum fund activities contained in 2013 PA 59, 2014 PA 252, 2015 PA 84, 2016 PA 268, 2017 PA 107, 2018 PA 207, 2019 PA 57, 2020 PA 166, 2021 PA 87, and 2022 PA 166 are appropriated for expenditure.

(4) Unexpended and unencumbered amounts remaining from the appropriations from the strategic water quality initiatives fund contained in 2011 PA 50, 2011 PA 63, 2012 PA 200, 2013 PA 59, 2014 PA 252, 2015 PA 84, 2016 PA 268, 2017 PA 107, and 2018 PA 207, are appropriated for expenditure.

(5) For the strategic water quality initiatives fund, funds not yet disbursed are appropriated for expenditure for the same program under sections 5201, 5202, and 5204e of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5201, 324.5202, and 324.5204e.

(6) Unexpended and unencumbered amounts remaining from the appropriations from the renew Michigan fund contained in 2018 PA 207, 2019 PA 57, 2020 PA 166, 2021 PA 87, and 2022 PA 166 are appropriated for expenditure.

(7) Unexpended and unencumbered amounts remaining from the appropriations from the general fund contained in 2021 PA 87 and 2022 PA 166 are appropriated for expenditure.

(8) Unexpended and unencumbered amounts remaining from the appropriations from the contaminated site cleanup contingency fund contained in 2021 PA 87 and 2022 PA 166, are appropriated for expenditure.

Sec. 228. Revenues that remain in the settlements fund at the end of the fiscal year carry forward into the succeeding fiscal

year.

Sec. 235. (1) Semiannually, the department shall prepare a report that contains information regarding all remediation and redevelopment efforts funded from part 1.

(2) The report must contain the following information:

(a) List of sites where work is planned to occur, including the county for each site.

(b) The type of site, whether refined petroleum cleanup, nonrefined petroleum cleanup, brownfield, or a combination of types.

(d) The estimated date for project completion.

(e) The amount and funding source or sources allocated to the site.

(3) The report must be submitted to the senate and house subcommittees on the environment, Great Lakes, and energy and the state budget director.

Sec. 236. The department shall provide a report to the standard report recipients and to the senate and house appropriations committees that details the expenditure of departmental funds appropriated in 2015 PA 143, 2016 PA 3, 2016 PA 268, and 2016 PA 340. The report must include the following:

(a) The names and locations of entities receiving funds.

(b) The purpose for each expenditure.

(d) A brief description of how related problems have been or will be resolved if expenditures are made for immediate response.

(e) The job titles and number of departmental FTEs engaged in

the Flint declaration of emergency response effort.

Sec. 238. The department shall submit a report to the senate and house standing committees and appropriations subcommittees with primary responsibility for issues under the jurisdiction of the department that details departmental activities of the most recent fiscal year in administering permitting programs. The report must include, at a minimum, all of the following:

(a) The number of FTEs assigned to each permitting program and the number of unfilled positions at the beginning and end of the most recent fiscal year.

(b) The number of permit applications received by the department in the preceding year, including applications for new and increased uses and reissuances.

(d) The number of permits for each program denied.

(e) The percentage and number of permit applications that were reviewed for administrative completeness within statutory time frames.

(f) The percentage and number of permit applications for which a final action was taken by the department within statutory time frames for new and increased uses and reissuances.

(g) Activities to reduce any backlog of permits that exceed the statutory time frames and the average time frame for permit approvals for each program.

(h) Activities to reduce the percentage of permit applications submitted as incomplete, in need of modification, or additional information before final determination.

(i) Under conditions in which the department states a permit is incomplete or denied, the department shall provide an

explanation as to the reason or reasons the permit is insufficient and how the permit can be strengthened or made complete.

Sec. 242. If the department responds to a significant incident to protect life or property, as soon as possible and within 24 hours after the department responds to the significant incident, the department shall notify, in writing, the senate and house members whose district includes the site.

Sec. 244. In expending federal funds, the department shall comply with the requirements of the Justice40 Initiative, where applicable.

Sec. 245. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes of this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:

(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (3).

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not

execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct the cost of background checks performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information.

(3) A sponsor of a grant described in subsection (1) must be a legislator or the department. A legislative sponsor must be identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable. If a legislative sponsor is not identified before January 15, 2025, the department shall do 1 of the following:

(a) Identify the department as the sponsor.

(b) Decline to execute the grant agreement.

(4) An executed grant agreement under this section between the department and a grant recipient must include at least all of the

following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1.

(c) Unless otherwise specified in department policy, a requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) At the discretion of the department, a provision for an initial disbursement of 50% to the grant recipient on execution of the grant agreement consistent with part II, chapter 10, section 200 of the Financial Management Guide.

(e) A requirement that after an initial 50% disbursement under subdivision (d), additional funds will be disbursed only after verification that the initial payment has been fully expended in accordance with the project purpose. The department shall disburse the remaining funds after the grantee has provided sufficient documentation, as determined by the department, to verify that all expenditures were made in accordance with the project purpose.

(f) A requirement for reporting by the grant recipient to the department that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(g) A claw-back provision that allows the department of

treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(5) If appropriate to improve the administration or oversight of a grant described in subsection (1), the department may adopt a memorandum of understanding with another state department to perform the required duties under this section.

(6) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(7) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2029. If at that time any unexpended funds remain, the grant recipient shall return those funds to the state treasury. If a grant recipient does not provide information sufficient to execute a grant agreement not later than June 1, 2025, the department shall return funds associated with the grant to the state treasury.

(8) The state budget director may, on a case-by-case basis, extend the deadline in subsection (7) on request by a grant recipient. The state budget director shall notify the chairs of the house and senate appropriations committees not later than 5 days after an extension is granted.

(9) Subject to subsection (10), the department shall post a report in a publicly accessible location on its website not later than March 15, 2025. The report must list the grant recipient,

project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. The department shall update the report not later than June 15, 2025 and again not later than September 15, 2025, and post the updated reports. At each posting of the report, the department shall include the most comprehensive information it has available at the time of posting for grants awarded.

(10) If the state budget office determines that it is more efficient for the state budget office to compile the information required under subsection (9) for all of the affected departments and post a report of the compiled information by the date required under subsection (9) than for the individual departments to comply with subsection (9), the state budget office may compile that information and post that report.

(11) As applicable, the legislative sponsor of a grant described in subsection (1) shall comply with all applicable laws concerning conflicts of interest in seeking a direct grant. A legislative sponsor shall not seek a grant for a recipient if a conflict of interest exists.

(12) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

Sec. 246. The funds appropriated in part 1 for state employees retirement system implementation costs must be remitted to the state employees retirement system for implementation costs if the

following bills of the 102nd Legislature are enacted into law:

(a) Senate Bill No. 165.

(b) Senate Bill No. 166.

REMEDIATION AND REDEVELOPMENT DIVISION

Sec. 301. Revenues remaining in the laboratory services fees fund at the end of the fiscal year carry forward into the succeeding fiscal year.

Sec. 302. The unexpended funds appropriated in part 1 for brownfield grants, contaminated site cleanup, emergency cleanup actions, environmental cleanup and redevelopment program, environmental cleanup support, and the refined petroleum product cleanup program are designated as work project appropriations, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have 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 projects is to provide contaminated site cleanup.

(b) The projects will be accomplished by utilizing contracts with service providers.

(d) The tentative completion date is September 30, 2028.

Sec. 303. (1) Upon approval by the state budget director, the department may expend from the general fund of the state an amount to meet the cash-flow requirements of projects funded under any of

the following that are financed from bond proceeds and for which bonds have been authorized but not yet issued:

(a) Part 52 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5201 to 324.5206.

(b) Part 193 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.19301 to 324.19306.

(2) Upon the sale of bonds for projects described in subsection (1), the department shall credit the general fund of the state an amount equal to that expended from the general fund.

Sec. 304. (1) In addition to the money appropriated in part 1, the department may receive and expend money from the subaccounts of the cleanup and redevelopment fund as described under section 20108 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.20108, including the environmental response fund or the natural resource damages fund, to provide funding for actions by the department that are authorized by a court of competent jurisdiction and set forth in a final court order or judgment in an action to which the department is a party.

(2) By January 30, the department shall submit a report to the appropriations subcommittees, the fiscal agencies, and the state budget office that provides a summary of the expenditures incurred under this section during the preceding fiscal year.

WATER RESOURCES DIVISION

Sec. 405. If a certified health department does not exist in a city, county, or district or does not fulfill its responsibilities under part 117 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.11701 to 324.11721, then the department may spend funds appropriated in part 1 for drinking water and environmental health in accordance with section 11716 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.11716.

Sec. 410. From the funds appropriated in part 1, the department shall compile a report by November 1 on the status of the implementation plan for the western Lake Erie basin collaborative agreement. In an effort to learn more about the presence and timing of harmful algal blooms, the report shall contain all of the following:

(a) An estimated cost of removal of total phosphorus per pound at the 4 major wastewater treatment plants.

(b) A description of the grants that have been awarded.

(c) A description of the work that has commenced on the issue of dissolved reactive phosphorus, the expected objectives and outcomes of that work, and a list of the parties involved in that effort.

(d) A description of the efforts and outcomes aimed at the total phosphorus reduction for the River Raisin watershed.

UNDERGROUND STORAGE TANK AUTHORITY

Sec. 701. The unexpended funds appropriated in part 1 for the underground storage tank cleanup program are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have 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 provide underground storage tank cleanup.

(b) The project will be accomplished by utilizing contracts with service providers.

(d) The tentative completion date is September 30, 2028.

RENEWING MICHIGAN'S ENVIRONMENT

Sec. 801. The unexpended funds appropriated in part 1 for the renewing Michigan's environment program are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have 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 for environmental cleanup and redevelopment, waste management, and recycling.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2028.

MATERIALS MANAGEMENT DIVISION

Sec. 901. In addition to the money appropriated in part 1, the department may receive and expend money from the Volkswagen Environmental Mitigation Trust Agreement to provide funding for activities as outlined within the State's Mitigation Plan. The

department shall prepare a report to the appropriations subcommittees, the fiscal agencies, and the state budget office by February 1, 2026 of the expenditures incurred under this section during the fiscal year ending September 30, 2025.

Sec. 902. (1) From the funds appropriated in part 1 for municipal assistance, $5,000,000.00 must be used for grants to municipalities and regional councils to support the implementation of stormwater projects that reduce the impacts of climate change, such as increased intensity and frequency of storm events. A minimum of 40% of funds must be awarded to communities located within environmental justice, overburdened, or significantly overburdened communities, as those terms are defined or otherwise determined by the department. Subject to subsection (2), grants may be used for managing wet weather, wetland restoration, enhancement and acquisition, restoring or establishing wetlands in urban areas, and maintaining or restoring natural site hydrology or for similar construction activities that reduce or mitigate stormwater impacts.

(2) Grants awarded under this section may be used for, but are not limited to, any of the following activities:

(a) Removal, replacement, or upsizing of inappropriately sized culverts or bridges that impede or restrict stormwater flows, leading to site degradation.

(b) Installation of buffer strips, bioswales, or rain gardens to manage or treat stormwater.

(d) Restoration of stream banks, or construction of wetlands for stormwater management.

(e) Stormwater reuse projects.

(3) The department shall coordinate with the department of

natural resources on projects related to wetland restoration, enhancement and acquisition, and wetland restoration in urban areas.

WATER INFRASTRUCTURE

Sec. 951. The funds appropriated in part 1 for lead service line replacement must be used to support lead service line replacement and associated activities, including, but not limited to, water main replacement to promote coordinated water infrastructure work in overburdened and significantly overburdened communities, as those terms are defined by the department in accordance with the requirements under parts 53 and 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5301 to 324.5316 and 324.5401 to 324.5418.

ONE-TIME APPROPRIATIONS

Sec. 1001. (1) The funds appropriated in part 1 for water infrastructure initiative must be used for grants to municipalities and regional councils to support the implementation of stormwater projects that reduce the impacts of climate change, such as increased intensity and frequency of storm events. A minimum of 40% of funds must be awarded to communities located within environmental justice, overburdened, or significantly overburdened communities, as those terms are defined or otherwise determined by the department. Subject to subsection (2), grants may be used for managing wet weather, wetland restoration, enhancement, and acquisition, restoring or establishing wetlands in urban areas, and maintaining or restoring natural site hydrology or for similar construction activities that reduce or mitigate stormwater impacts.

(2) Grants awarded under this section may be used for, but are not limited to, any of the following activities:

(a) Removal, replacement, or upsizing of inappropriately sized culverts or bridges that impede or restrict stormwater flows, leading to site degradation.

(b) Installation of buffer strips, bioswales, or rain gardens to manage or treat stormwater.

(d) Restoration of stream banks or construction of wetlands for stormwater management.

(e) Stormwater reuse projects.

(3) The department shall coordinate with the department of natural resources on projects related to wetland restoration, enhancement and acquisition, and wetland restoration in urban areas.

(4) The unexpended funds appropriated in part 1 for water infrastructure initiative are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects 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 support the implementation of stormwater projects that reduce the impacts of climate change, such as increased intensity and frequency of storm events.

(b) The project will be accomplished by utilizing state resources or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

Sec. 1002. (1) The funds appropriated in part 1 for drinking water infrastructure must be used to support lead line replacement and associated activities, including, but not limited to, water main replacement to promote coordinated water infrastructure work in overburdened and significantly overburdened communities, as those terms are defined by the department in accordance with the requirements under parts 53 and 54 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5301 to 324.5316 and 324.5401 to 324.5418.

(2) The unexpended funds appropriated in part 1 for drinking water infrastructure are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects 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 support the upgrade or replacement of water infrastructure.

(b) The project will be accomplished by utilizing state resources or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

Sec. 1003. (1) The funds appropriated in part 1 for clean fuel and charging infrastructure must be used for grants to support the accelerated deployment of electric vehicle charging stations and hydrogen fueling infrastructure. A minimum of 40% of funds must be awarded to communities located within environmental justice, overburdened, or significantly overburdened communities, as those

terms are defined or otherwise determined by the department.

(2) Grants awarded under this section may be used for, but are not limited to, any of the following activities:

(a) Deploying nonpublicly available charging and fueling stations, including, but not limited to, medium- and heavy-duty fleet lots and public transit systems.

(b) Deploying nonpublicly available charging and fueling stations and supporting enabling upgrades to support deployment at single and multifamily housing units.

(3) The unexpended funds appropriated in part 1 for clean fuel and charging infrastructure are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for the projects 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 support the installation of clean energy charging stations.

(b) The project will be accomplished by utilizing state resources or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

Sec. 1004. (1) The funds appropriated in part 1 for clean fleets must be used for grants to support the accelerated deployment of battery electric, fuel cell electric, and hydrogen vehicles. A minimum of 40% of funds must be awarded to communities located within environmental justice, overburdened, or

significantly overburdened communities, as those terms are defined or otherwise determined by the department.

(2) The following entities are eligible for the clean fleets program:

(a) Local units of government.

(b) Transit authorities.

(d) Ports.

(e) Airports.

(3) Grants awarded under this section may be used for, but are not limited to, any of the following activities:

(a) The purchase of battery electric, fuel cell electric, and hydrogen vehicles.

(b) State technical assistance to the grantees on aligning the clean fleets program with federal funding opportunities, including, but not limited to, direct pay.

(4) Unexpended funds appropriated in part 1 for clean fleets are designated as a work project appropriation. Unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure 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 accelerate the adoption of emission free vehicles to enable the transition to green transportation options.

(b) The projects will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

Sec. 1005. The funds appropriated in part 1 for sediment removal project must be used to provide matching funds for the remediation of contaminated sediment from the Detroit River Area of Concern, as listed by the United States Environmental Protection Agency. The funds must be used to leverage federal matching opportunities for sediment remediation.

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Bill Text: MI SB0768 | 2023-2024 | 102nd Legislature | Engrossed

Michigan Senate Bill 768

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