Bill Text: MI SB0911 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Environmental protection; funding; environmental protection bond fund; modify criteria for grants. Amends secs. 19508, 19509 & 19510 of 1994 PA 451 (MCL 324.19508 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-04-21 - Introduced By Senator Ken Horn [SB0911 Detail]
Download: Michigan-2015-SB0911-Engrossed.html
SB-0911, As Passed House, December 14, 2016
SB-0911, As Passed Senate, October 18, 2016
SENATE BILL No. 911
April 21, 2016, Introduced by Senator HORN and referred to the Committee on Commerce.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 19508, 19509, and 19510 (MCL 324.19508,
324.19509, and 324.19510), as added by 1995 PA 60.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19508. (1) Except as provided in subsection (3), money in
the fund that is allocated under section 19507 shall be used for
the following purposes:
(a) Money in the fund that is allocated under section
19507(1)(a)
shall be used for sites identified through part parts
201 and 213, to be expended and recovered by the state in the same
manner as provided in that part. Of the funds allocated under
section 19507(1)(a), the following apply:
(i) Not more than $35,000,000.00 shall be used to clean up
sites of environmental contamination that have been identified
under
former Act No. 307 of the Public Acts of 1982 or 1982 PA 307,
part 201, or part 213; that meet either of the following:
(A) Until the effective date of the 2016 amendatory act that
amended
this section, will not be funded in the
next fiscal year ;
and
that have been approved by the department as having measurable
economic
benefit. The department, after consultation with the
department
of commerce, shall promulgate rules that establish the
criteria
and process by which sites will be selected and determined
to
qualify as sites having measurable economic benefit.
(B) Beginning on the effective date of the 2016 amendatory act
that amended this section, for projects meeting the criteria of
sections 19608 to 19615.
(ii) Not more than $10,000,000.00 may be used to provide
grants to eligible communities to investigate and determine whether
property within an eligible community is a site of environmental
contamination and, if so, to characterize the nature and extent of
the
contamination. A grant shall only be issued under this
subparagraph only if all of the following conditions are met:
(A) The characterization of the nature and extent of
contamination includes an estimate of response activity costs in
relation to the value of the property in an uncontaminated state
and identifies future potential limitations on the use of the
property based upon current environmental conditions.
(B) The property has demonstrable economic development
potential. This provision does not require a specific development
proposal to be identified.
(C) The property is located within an eligible community that
has received less than $1,000,000.00 in total grants under this
subparagraph. However, a grant that has resulted in measurable
economic benefits shall not be included in the calculation of the
$1,000,000.00.
(b) Money in the fund that is allocated for solid waste
projects including, but not limited to, reducing, recycling, and
properly disposing of solid waste shall be used to fund state
projects, to provide grants and loans to local units of government,
and to provide grants and loans to private entities for any of the
programs identified in part 191, in the amounts appropriated
pursuant to subsection (5). Not less than $17,500,000.00 of the
money for solid waste projects shall be used to fund the following:
(i) To promote and expand markets for recycled materials.
(ii) To assist in the recycling of solid wastes, including,
but not limited to, plastics, metals, tires, wood, and paper.
(iii) To promote research on resource recovery.
(iv) To study marketing options for products that use recycled
materials.
(c) Money in the fund that is allocated to capitalize the
state water pollution control revolving fund created in section 16a
of
the shared credit rating act, Act No. 227 of the Public Acts of
1985,
being section 141.1066a of the Michigan Compiled Laws, 1985
PA 227, MCL 141.1066a, shall be used as provided in part 53.
(d) Money in the fund that is allocated to fund this state's
participation in a regional Great Lakes protection fund pursuant to
part 331.
(2) If, by June 28, 1995, the department determines that money
allocated under subsection (1)(a)(ii) is unlikely to be expended
pursuant to that subparagraph, $5,000,000.00 of the money allocated
pursuant to that subparagraph shall be expended pursuant to
subsection (1)(a)(i).
(3) If money that is expended pursuant to subsection
(1)(a)(ii) is recovered by an eligible community from a person who
may be liable under part 201, through proceeds from the sale of the
property, or through any other mechanism, and additional funds for
environmental response activities on the property are not
necessary, the eligible community may retain those funds for
expenditure on projects that the department determines are eligible
to receive funding under subsection (1)(a)(ii). An accounting of
the recovered funds must be provided to the department within 30
days of receipt, and approval and expenditure of the recovered
funds shall be in the same manner as funds awarded pursuant to
subsection (1)(a)(ii). If funds are recovered and not spent on
other projects pursuant to this subparagraph within 2 years after
they are recovered by the eligible community, the eligible
community shall forward the money collected to the state treasurer
for deposit into the fund to be used pursuant to subsection
(1)(a)(ii). When accounting for the use of recovered funds,
eligible communities may itemize deductions for site preparation
and other costs directly related to the reuse of a site funded
under this section.
(4) Money provided in the fund may be used by the department
of
treasury to pay for the cost of issuing bonds under former Act
No.
326 of the Public Acts of 1988 PA 326 or
part 193 and by the
department to pay department costs as provided in this subsection.
Not more than 6% of the total amount specified in section
19507(1)(a), (b), and (d) shall be available for appropriation to
the department to pay department costs directly associated with the
completion of a project described in section 19507(1)(a), (b), or
(d), for which bonds are issued as provided under this part. Any
department costs associated with a project described in section
19507(1)(c) for which bonds are issued under this part shall be
paid as provided in the state statute implementing the state water
pollution control revolving fund. Bond proceeds shall not be
available to pay indirect, administrative overhead costs incurred
by any organizational unit of the department not directly
responsible for the completion of a project. It is the intent of
the legislature that general fund appropriations to the department
shall not be reduced as a result of department costs funded
pursuant to this subsection.
(5) Except as provided in subsection (3), the department shall
annually submit a list of all projects that are recommended to be
funded under this part to the governor, the standing committees of
the house of representatives and the senate that primarily address
issues pertaining to the protection of natural resources and the
environment, and the appropriations committees in the house of
representatives and the senate. This list shall be submitted to the
legislature not later than February 15 of each year. This list
shall also be submitted before any request for supplemental
appropriation of bond funds. The list shall include the name,
address, and telephone number of the eligible recipient or
participant; the nature of the eligible project; the county in
which the eligible project is located; an estimate of the total
cost of the eligible project; and other information considered
pertinent by the department.
(6) The legislature shall appropriate prospective or actual
bond proceeds for projects proposed to be funded. Appropriations
shall be carried over to succeeding fiscal years until the project
for which the funds are appropriated is completed. Environmental
cleanup projects that are eligible for funding under subsection
(1)(a), but not including subsection (1)(a)(i) and (ii), shall be
prioritized and approved pursuant to the procedures outlined in
part 201. Projects to which loans are provided from the state water
pollution control revolving fund shall be approved pursuant to
state law implementing that fund. The capitalization of the
regional Great Lakes protection fund shall be a 1-time
appropriation.
(7) Not later than December 31 of each year, the department
shall submit a list of the projects financed under this part to the
governor, the standing committees of the house of representatives
and the senate that primarily address issues pertaining to the
protection of natural resources and the environment, and the
committees of the house of representatives and the senate on
appropriations for the department. The list shall include the name,
address, and telephone number of the recipient or participant; the
nature of the project; the amount of money received; the county in
which the project is located; and other information considered
pertinent by the department.
(8) As used in this section, "eligible community" means any of
the following:
(a) A city, village, or township, or a county on behalf of a
city, village, or township, that on May 1, 1993 meets the
applicable criteria of a local government unit under section
2(d)(i) or (ii) 2(f)
of the neighborhood enterprise zone
act, Act
No.
147 of the Public Acts of 1992, being section 207.772 of the
Michigan
Compiled Laws.1992 PA 147,
MCL 207.772.
(b) A city that meets any of the following descriptions:
(i) Has a population of greater than 10,000 and is located
within a county that has a population density of less than 39
residents per square mile.
(ii) Has a population of greater than 2,500 and is located
within a county that has a population density of less than 39
residents per square mile.
(iii) Had an average unemployment rate of 11.5% or more during
the most recent calendar year for which data is available from the
Michigan
employment security commission. and meets the criteria of
section
2(d)(i)(A),
(D), and (E) of Act No. 147 of the Public Acts
of
1992.
Sec. 19509. (1) The department shall promulgate rules
necessary to implement grant and loan programs provided in this
part.
(2) The department shall assure maximum participation by local
units of government and by private entities by promulgating rules
that provide for a grant or loan program, where appropriate. In
determining whether a grant or a loan program is appropriate, the
department shall consider whether the project is likely to be
undertaken without state assistance; the availability of state
funds from other sources; the degree of private sector
participation in the type of project under consideration; the
extent of the need for the project as a demonstration project; and
such other factors considered important by the department.
(3) Prior to making a grant or loan authorized by this part,
the department shall consider the extent to which the making of the
grant or loan contributes to the achievement of a balanced
distribution of grants and loans throughout the state.
(4) The department shall provide in rules promulgated under
this
part that loans , where authorized, that are issued by the
department to private entities shall include an interest charge of
not less than 5% per year.
(5) Notwithstanding any other provision of this section, for
grant projects considered for funding under section 19508(1)(a) on
or after the effective date of the 2016 amendatory act that amended
this section, subsections (1) to (4) do not apply and the
department shall apply the criteria used for projects funded under
section 19611.
(6) (5)
Neither this section nor section
19510 shall apply to
loans from the state water pollution control revolving fund.
Sec. 19510. (1) An application for a grant or a loan
authorized under this part shall be made on a form prescribed by
the department. The department may require the applicant to provide
any information reasonably necessary to allow the department to
make a determination required by this part.
(2) Beginning on the effective date of the 2016 amendatory act
that amended this section, an application for a grant under section
19508(1)(a) is subject to the same requirements listed in section
19610 for a loan under section 19608(1)(a)(iv).
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 908.
(b) Senate Bill No. 910.
(c) Senate Bill No. 913.
(d) Senate Bill No. 909.
(e) Senate Bill No. 912.
