Bill Text: MI SB1157 | 2011-2012 | 96th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Water; quality; safe drinking water revolving fund; revise designation of disadvantaged community and modify points awarded for funding priorities. Amends secs. 5402, 5406 & 5411 of 1994 PA 451 (MCL 324.5402 et seq.). TIE BAR WITH: HB 5673'12, SB 1155'12, SB 1156'12, SB 1158'12

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2012-12-31 - Assigned Pa 0561'12 With Immediate Effect 2012 Addenda [SB1157 Detail]

Download: Michigan-2011-SB1157-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1157

 

 

May 31, 2012, Introduced by Senators PAVLOV and KOWALL and referred to the Committee on Natural Resources, Environment and Great Lakes.

 

 

 

      A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 5402 and 5406 (MCL 324.5402 and 324.5406),

 

as added by 1997 PA 26.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 5402. As used in this part:

 

 2        (a) "Department" means the department of environmental

 

 3  quality or its authorized agent or representative.

 

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

 

 5  environmental quality or his or her designated representative.

 

 6        (c) "Disadvantaged community" means a municipality in which

 

 7  all of the following conditions are met:

 

 8        (i) Users within the area served by a proposed public water

 

 9  supply project are directly assessed for the costs of

 

10  construction.


 

 1        (ii) The median annual household income of the area served by

 

 2  a proposed public water supply project does not exceed 120% of

 

 3  the statewide median annual household income for Michigan.

 

 4        (iii) The municipality demonstrates at least 1 of the

 

 5  following:

 

 6        (A) More than 50% of the area served by a proposed public

 

 7  water supply project is identified as a poverty area by the

 

 8  United States bureau of the census or is an environmental justice

 

 9  area of concern as defined by the United States environmental

 

10  protection agency.

 

11        (B) The median annual household income of the area served by

 

12  a proposed public water supply project is less than the most

 

13  recently published federal poverty guidelines for a family of 4

 

14  in the 48 contiguous United States. In determining the median

 

15  annual household income of the area served by the proposed public

 

16  water supply project under this subparagraph, the municipality

 

17  shall utilize the most recently published statistics from the

 

18  United States Bureau of the Census, updated to reflect current

 

19  dollars, for the community which most closely approximates the

 

20  area being served. If these figures are not available for the

 

21  area served by the proposed public water supply project, the

 

22  municipality may have a survey conducted to document the median

 

23  annual household income of the area served by the project.

 

24        (C) The median annual household income of the area served by

 

25  a proposed public water supply project is less than the most

 

26  recently published statewide median annual household income for

 

27  Michigan, this state, and annual user costs for water supply


 

 1  exceed 1.5% 1% of the median annual household income of the area

 

 2  served by the proposed public water supply project.

 

 3        (D) The median annual household income of the area served by

 

 4  a proposed public water supply project is not greater than 120%

 

 5  of the statewide median annual household income for Michigan,

 

 6  this state, and annual user costs for water supply exceed 3% of

 

 7  the median annual household income of the area served by the

 

 8  proposed project.

 

 9        (d) "Federal safe drinking water act" means title XIV of the

 

10  public health service act, chapter 373, 88 Stat. 1660, the safe

 

11  drinking water act, 42 USC 300f to 300j-26, and the rules

 

12  promulgated under that act.

 

13        (e) "Fund" means the safe drinking water revolving fund

 

14  created in established under section 16b of the shared credit

 

15  rating act, 1985 PA 227, MCL 141.1066b.

 

16        (f) "Fundable range" means those projects, taken in

 

17  descending order on the priority list, for which the department

 

18  estimates sufficient funds exist to provide assistance during

 

19  each annual funding cycle.

 

20        (g) "Municipality" means a city, village, county, township,

 

21  authority, public school district, or other public body with

 

22  taxing authority, including an intermunicipal agency of 2 or more

 

23  municipalities, authorized or created under state law.

 

24        (h) "Noncommunity water supply" means a public water supply

 

25  that is not a community water supply, but that has not less than

 

26  15 service connections or that serves not less than 25

 

27  individuals on an average daily basis for not less than 60 days


 

 1  per year.

 

 2        Sec. 5406. (1) The department shall annually develop a

 

 3  priority list of projects eligible for assistance under this

 

 4  part. Projects that are not funded during the year that a

 

 5  priority list developed under this section is in effect shall be

 

 6  automatically prioritized on the next annual list using the same

 

 7  criteria, unless the water supplier submits an amendment to its

 

 8  project plan that introduces new information to be used as the

 

 9  basis for prioritization. The priority list shall be based on

 

10  project plans submitted by water suppliers under section 5405 and

 

11  the criteria listed in subdivisions (a) through (f). Each project

 

12  shall be assigned points up to a maximum of 1,000. The point

 

13  values are maximum values available for each category or

 

14  subcategory listed in this section and shall only be awarded if

 

15  the project substantially addresses the problem for which the

 

16  point award is given. If a project is primarily designed to

 

17  replace individual wells at private homes, 50% or more of the

 

18  homes in the affected area shall meet equivalent water quality or

 

19  infrastructure deficiency criteria listed in subdivisions (a)

 

20  through (f) in order to receive the maximum available points. If

 

21  less than 50% of the homes in the affected area can demonstrate

 

22  deficiencies, 1/2 of the total points available shall be awarded.

 

23  Points shall be awarded as follows:

 

24        (a) A maximum of 450 points may be awarded to a project that

 

25  addresses drinking water quality as outlined in Act 399, if the

 

26  project:

 

27        (i) Is designed to eliminate an acute violation of a drinking


 

 1  water standard as defined in part 4 of the administrative rules

 

 2  for Act 399. described in R 325.10401 to R 325.10420 of the

 

 3  Michigan administrative code. A violation of a surface water

 

 4  treatment technique, or if a waterborne disease outbreak has been

 

 5  documented, 250 points shall be awarded for each violation.

 

 6        (ii) Is designed to eliminate a violation of a drinking water

 

 7  standard other than those outlined in subparagraph (i), 200 points

 

 8  shall be awarded for each violation.

 

 9        (iii) Is designed to upgrade a facility to maintain compliance

 

10  with drinking water standards or system capacity requirements,

 

11  150 points shall be awarded.

 

12        (iv) Is designed to eliminate an exceedance of a secondary

 

13  maximum contaminant level for aesthetic water quality, 25 points

 

14  shall be awarded.

 

15        (b) A maximum of 350 points may be awarded to a project that

 

16  addresses infrastructure improvements, as follows:

 

17        (i) If source or treatment facilities are upgraded, including

 

18  the watermains to connect to the distribution system, a maximum

 

19  of 125 points shall be awarded, if the improvement is:

 

20        (A) To meet minimum capacity requirements, 100 points shall

 

21  be awarded.

 

22        (B) For reliability, 75 points shall be awarded.

 

23        (C) For other source or treatment facility upgrades not

 

24  included in subparagraph (i)(A) or (B), 25 points shall be

 

25  awarded.

 

26        (D) To satisfy the conditions of a formal enforcement

 

27  action, 25 points shall be awarded. Points awarded for formal


 

 1  enforcement actions are in addition to the maximum points

 

 2  allowable in any category.

 

 3        (E) For source water protection, 50 points shall be awarded.

 

 4        (ii) If transmission or distribution watermains are upgraded,

 

 5  a maximum of 125 points shall be awarded, if the improvement is:

 

 6        (A) To meet minimum capacity where flow or residual pressure

 

 7  is less than acceptable, 100 points shall be awarded.

 

 8        (B) For reliability, including looping or redundant feeds,

 

 9  75 points shall be awarded.

 

10        (C) Other transmission or distribution system upgrades not

 

11  included in subparagraph (ii)(A) or (B), 25 points shall be

 

12  awarded.

 

13        (D) To satisfy the conditions of a formal enforcement

 

14  action, 25 points shall be awarded. Points awarded for formal

 

15  enforcement actions are in addition to the maximum points

 

16  allowable in any category.

 

17        (iii) If water storage facilities or pumping stations are

 

18  upgraded, a maximum of 125 points shall be awarded, if the

 

19  improvement is:

 

20        (A) To meet minimum capacity where storage or pumping

 

21  capacity is less than minimum requirements, 100 points shall be

 

22  awarded.

 

23        (B) For reliability, 75 points shall be awarded.

 

24        (C) Other storage facility or pumping station upgrades not

 

25  included in subparagraph (iii)(A) or (B), 25 points shall be

 

26  awarded.

 

27        (D) To satisfy the conditions of a formal enforcement


 

 1  action, 25 points shall be awarded. Points awarded for formal

 

 2  enforcement actions are in addition to the maximum points

 

 3  allowable in any category.

 

 4        (c) A maximum of 50 points shall be awarded based on the

 

 5  population served by the water system according to the following

 

 6  table. However, a transient noncommunity water supply as defined

 

 7  in section 2 of Act 399, MCL 325.1002, is eligible for 1/2 of the

 

 8  point value listed in the following table:

 

 

9

 

Population

  Points

10

 

>50,000

    50

11

 

10,001 – 50,000

    40

12

 

3,301 – 10,000

    30

13

 

501 – 3,300

    20

14

 

0 – 500

    10

 

 

15        (d) A maximum of 50 points shall be awarded to a community

 

16  water supply that is serves a disadvantaged community.

 

17        (e) A maximum of 100 points shall be awarded for projects

 

18  that include consolidation as follows:

 

19        (i) If 1 or more public water supplies are brought into

 

20  compliance with state drinking water standards as a result of

 

21  consolidation, 100 points shall be awarded.

 

22        (ii) If deficiencies, which are documented in writing by the

 

23  department, at 1 or more public water supplies are corrected as a

 

24  result of consolidation, 60 points shall be awarded.

 

25        (iii) Other consolidations, not included under subparagraph

 

26  (i) or (ii), shall be awarded 40 points.


 

 1        (f) For communities that have completed a wellhead

 

 2  protection plan or a an approved source water protection plan,

 

 3  program, 100 points shall be awarded.

 

 4        (g) After scoring, using the criteria in subdivisions (a)

 

 5  through (f), if 2 or more projects have the same score, the

 

 6  following tie-breaker shall be applied:

 

 7        (i) If the system has fewer than 2 violations of the

 

 8  monitoring, record-keeping, and reporting requirements of Act 399

 

 9  in the previous 2-year reporting period, or no violations if

 

10  ownership of the system has changed in the previous 2 years, it

 

11  shall rank above systems having more violations.

 

12        (ii) After applying the tie-breaker in subparagraph (i), if 2

 

13  or more projects score exactly the same, a calculation of the

 

14  cost per population served by the water system shall be made. The

 

15  affected projects shall be ranked with the lowest highest ratio

 

16  of cost to population ranked higher.

 

17        (2) The priority list shall be submitted annually to the

 

18  chairpersons of the senate and house of representatives standing

 

19  committees that primarily consider legislation pertaining to the

 

20  protection of public health and the environment.

 

21        (3) In preparing the priority list, to ensure that a

 

22  disproportionate share of available funds for a given fiscal year

 

23  is not committed to a single water supply project, the department

 

24  may segment a project if either of the following criteria is

 

25  present:

 

26        (a) The cost of the proposed project is more than 30% of the

 

27  total amount available in the fund during the fiscal year.


 

 1        (b) The department has approved a water supplier's

 

 2  application for segmenting a project.

 

 3        (4) Segments of a project that have been segmented under

 

 4  subsection (3) shall be assigned priority points based on the

 

 5  project as identified in the project plan. After funding

 

 6  assistance for the first segment is accepted, the remaining

 

 7  segments will retain first priority for funding assistance on the

 

 8  next 3 fiscal year priority lists. All projects with previously

 

 9  funded segments will be designated with first priority. Ranking

 

10  order for these projects to receive funding assistance will be

 

11  subject to the relative ranking of all first segment projects.

 

12        (5) In preparing the intended use plan, the department shall

 

13  make every effort to assure that funding for assistance is

 

14  equitably distributed among public water supplies of varying

 

15  sizes.

 

16        (6) For purposes of providing assistance, the priority list

 

17  shall take effect on the first day of each fiscal year.

 

18        Enacting section 1. This amendatory act does not take effect

 

19  unless all of the following bills of the 96th Legislature are

 

20  enacted into law:

 

21        (a) Senate Bill No. 1155.                                  

 

22                    

 

23        (b) Senate Bill No. 1156.                                   

 

24               

 

25        (c) Senate Bill No. 1158.                                   

 

26                

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