SENATE BILL No. 154

 

 

February 14, 2017, Introduced by Senators ANANICH, HOPGOOD and BIEDA and referred to the Committee on Government Operations.

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 3101, 3102, 3112, 3113, and 3120 (MCL

 

324.3101, 324.3102, 324.3112, 324.3113, and 324.3120), section 3101

 

as amended by 2015 PA 247, section 3112 as amended by 2005 PA 33,

 

section 3113 as amended by 2004 PA 91, and section 3120 as amended

 

by 2015 PA 82, and by adding section 3102a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101. As used in this part:

 

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

 

that threatens the diversity or abundance of native species or the

 

ecological stability of infested waters, or commercial,

 

agricultural, aquacultural, or recreational activities dependent on


such those waters.

 

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

 

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

 

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

 

carried.

 

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

 

treating ballast water and sediments to remove or destroy living

 

biological organisms through 1 or more of the following:

 

     (i) Filtration.

 

     (ii) The application of biocides or ultraviolet light.

 

     (iii) Thermal methods.

 

     (iv) Other treatment techniques approved by the department.

 

     (d) "Commission" means the water resources commission created

 

in section 3102.

 

     (e) (d) "Department" means the department of environmental

 

quality.

 

     (f) (e) "Detroit consumer price index" means the most

 

comprehensive index of consumer prices available for the Detroit

 

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

 

Statistics.

 

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

 

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

 

MCL 30.402.

 

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

 

connecting waters, including Lake St. Clair.

 

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

 

described by R 323.2218 of the Michigan administrative code.


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

 

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

 

Michigan administrative code. Group 2 facility does not include a

 

Group 2a facility.

 

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

 

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

 

administrative code and that meets 1 or more of the following:

 

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

 

laundromat.

 

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

 

wash open to the public.

 

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

 

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

 

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

 

administrative code.

 

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

 

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

 

campground, or recreational or vacation camp.

 

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

 

described by R 323.2211 or R 323.2213 of the Michigan

 

administrative code.

 

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

 

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

 

333.1105.

 

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

 

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

 

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


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

 

these entities.

 

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

 

Communications Center established under the clean water act,

 

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

 

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

 

discharge or releases of hazardous substances to appropriate

 

federal officials.

 

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

 

oceangoing vessel.

 

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

 

the Great Lakes or the St. Lawrence waterway after operating in

 

waters outside of the Great Lakes or the St. Lawrence waterway.

 

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

 

means the placement of dredge materials contaminated with toxic

 

substances as defined in R 323.1205 of the Michigan administrative

 

code into the open waters of the waters of the state but does not

 

include the siting or use of a confined disposal facility

 

designated by the United States Army Corps of Engineers or beach

 

nourishment activities utilizing uncontaminated materials.

 

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

 

term as defined in section 102 of the emergency telephone 9-1-1

 

service enabling act, 1986 PA 32, MCL 484.1102.

 

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

 

water within a vessel.

 

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

 

treatment of domestic sewage, other than only septage or industrial


waste.

 

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

 

application derived from sewage sludge that does not include solid

 

waste or other waste regulated under this act.

 

     (x) (w) "Sewage sludge generator" means a person who generates

 

sewage sludge that is applied to land.

 

     (y) (x) "Sewage sludge distributor" means a person who

 

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

 

derivative.

 

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

 

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

 

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

 

defined in R 324.2002 of the Michigan administrative code.

 

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

 

rivers, and streams and all other watercourses and waters,

 

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

 

     Sec. 3102. (1) The water resources commission is created

 

within the department.

 

     (2) The commission consists of the following members:

 

     (a) The director of the department.

 

     (b) The director of the department of natural resources.

 

     (c) Eleven members appointed by the governor with the advice

 

and consent of the senate who represent diverse geographic areas of

 

this state, as follows:

 

     (i) Two individuals representing commerce and industry.

 

     (ii) Two individuals with medical backgrounds who have

 

knowledge and expertise in medical issues associated with water


contamination.

 

     (iii) Two individuals representing local units of government.

 

     (iv) Two individuals representing private environmental

 

protection organizations.

 

     (v) Three individuals representing the general public.

 

     (3) The governor shall appoint members to the commission under

 

subsection (2)(c) within 30 days after the effective date of the

 

amendatory act that amended this section.

 

     (4) Members of the commission appointed under subsection

 

(2)(c) serve for terms of 3 years or until a successor is

 

appointed, whichever is later, except that of the members first

 

appointed 3 serve for 1 year, 4 serve for 2 years, and 4 serve for

 

3 years.

 

     (5) If a vacancy occurs in an appointed seat on the

 

commission, the governor shall make an appointment for the

 

unexpired term in the same manner as the original appointment.

 

     (6) The governor may remove a member of the commission for

 

incompetence, dereliction of duty, malfeasance, misfeasance, or

 

nonfeasance in office, or any other good cause.

 

     (7) The director of the department shall call the first

 

meeting of the commission not later than 60 days after the

 

effective date of the amendatory act that amended this section. At

 

the first meeting, the commission shall elect from among its

 

members a chairperson and other officers as it considers necessary

 

or appropriate. After the first meeting, the commission shall meet

 

at least quarterly, or more frequently at the call of the

 

chairperson or if requested by 3 or more members.


     (8) A majority of the members of the commission constitute a

 

quorum for the transaction of business at a meeting of the

 

commission. A majority of the members present and serving are

 

required for official action of the commission.

 

     (9) The business that the commission performs must be

 

conducted at a public meeting of the commission held in compliance

 

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (10) A writing prepared, owned, used, in the possession of, or

 

retained by the commission in the performance of an official

 

function is subject to the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (11) Members of the commission serve without compensation.

 

However, members of the commission may be reimbursed for their

 

actual and necessary expenses incurred in the performance of their

 

official duties as members of the commission.

 

     (12) The commission shall carry out all responsibilities as

 

provided in this act and as otherwise provided by law.

 

     (13) The director of the department shall implement this part

 

under the oversight of the commission.

 

     Sec. 3102a. (1) Notwithstanding any other provision of this

 

part, the commission shall exercise supervisory authority over all

 

of the following under this part:

 

     (a) The issuance, denial, revocation, suspension, or

 

modification of permits.

 

     (b) The promulgation of rules.

 

     (c) The development of department policies.

 

     (2) Notwithstanding any other provision of this part, the


director of the department or the department shall not exercise the

 

powers listed in subsection (1) without the approval of the

 

commission.

 

     (3) The commission shall receive complaints of water pollution

 

that allege a violation of this part, rules promulgated under this

 

part, or any determination, permit, or order issued under this

 

part.

 

     (4) In response to a complaint under subsection (3), the

 

commission may do any of the following:

 

     (a) Require the department to take investigatory or

 

enforcement action as provided in this part.

 

     (b) Request the attorney general to commence an action in

 

court as provided in this part.

 

     Sec. 3112. (1) A person shall not discharge any waste or waste

 

effluent into the waters of this the state unless the person is in

 

possession of a valid permit from the department.

 

     (2) An application for a permit under subsection (1) shall

 

must be submitted to the department. Within 30 days after an

 

application for a new or increased use is received, the department

 

shall determine whether the application is administratively

 

complete. Within 90 days after an application for reissuance of a

 

permit is received, the department shall determine whether the

 

application is administratively complete. If the department

 

determines that an application is not complete, the department

 

shall notify the applicant in writing within the applicable time

 

period. If the department does not make a determination as to

 

whether the application is complete within the applicable time


period, the application shall must be considered to be complete.

 

     (3) The department shall condition the continued validity of a

 

permit upon the permittee's meeting the effluent requirements that

 

the department considers necessary to prevent unlawful pollution by

 

the dates that the department considers to be reasonable and

 

necessary and to assure ensure compliance with applicable federal

 

law and regulations. If the department finds that the terms of a

 

permit have been, are being, or may be violated, it may modify,

 

suspend, or revoke the permit or grant the permittee a reasonable

 

period of time in which to comply with the permit. The department

 

may reissue a revoked permit upon a showing satisfactory to the

 

department that the permittee has corrected the violation. A person

 

who has had a permit revoked may apply for a new permit.

 

     (4) If the department determines that a person is causing or

 

is about to cause unlawful pollution of the waters of this the

 

state, the department may notify the alleged offender of its

 

determination and enter an order requiring the person to abate the

 

pollution or may refer the matter to the attorney general for legal

 

action, or both.

 

     (5) A person who is aggrieved by an order of abatement of the

 

department or by the reissuance, modification, suspension, or

 

revocation of an existing permit of the department executed

 

pursuant to issued under this section may file a sworn petition

 

with the department commission setting forth the grounds and

 

reasons for the complaint and asking for a contested case hearing

 

on the matter pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328. A petition filed more than


60 days after action on the order or permit may be rejected by the

 

department commission as being untimely.

 

     (6) Beginning January 1, 2007, all All oceangoing vessels

 

engaging in port operations in this state shall obtain must have a

 

permit from the department. The department shall issue a permit for

 

an oceangoing vessel only if the applicant can demonstrate that the

 

oceangoing vessel will not discharge aquatic nuisance species or if

 

the oceangoing vessel discharges ballast water or other waste or

 

waste effluent, that the operator of the vessel will utilize

 

environmentally sound technology and methods, as determined by the

 

department, that can be used to prevent the discharge of aquatic

 

nuisance species. The department shall cooperate to the fullest

 

extent practical with other Great Lakes basin states, the Canadian

 

Great Lakes provinces, the Great Lakes panel on aquatic nuisance

 

species, Panel On Aquatic Nuisance Species, the Great Lakes fishery

 

commission, Fishery Commission, the international joint commission,

 

International Joint Commission, and the Great Lakes commission

 

Commission to ensure development of standards for the control of

 

aquatic nuisance species that are broadly protective of the waters

 

of the state and other natural resources. Permit The department

 

shall assess permit fees for permits under this subsection shall be

 

assessed as provided in section 3120. The permit fees for an

 

individual permit issued under this subsection shall be are the

 

fees specified in section 3120(1)(a) and (5)(a). The permit fees

 

for a general permit issued under this subsection shall be are the

 

fees specified in section 3120(1)(c) and (5)(b)(i). Permits under

 

this subsection shall must be issued in accordance with the


timelines provided in section 3120. The department may promulgate

 

rules to implement this subsection.

 

     Sec. 3113. (1) A person who seeks a new or increased use of

 

the waters of the state for sewage or other waste disposal purposes

 

shall file with the department an application setting forth the

 

information required by the department, including the nature of the

 

enterprise or development contemplated, the amount of water

 

required to be used , and its source, the proposed point of

 

discharge of the wastes into the waters of the state, the estimated

 

amount to be discharged, and a statement setting forth the expected

 

bacterial, physical, chemical, and other known characteristics of

 

the wastes.

 

     (2) If a permit is granted, the department shall condition the

 

permit upon such any restrictions that the department considers

 

necessary to adequately guard against unlawful uses of the waters

 

of the state as are set forth in section 3109.

 

     (3) If the permit or denial of a new or increased use is not

 

acceptable to the permittee, the applicant, or any other person,

 

the permittee, the applicant, or other that person may file a sworn

 

petition with the department commission setting forth the grounds

 

and reasons for the complaint and asking for a contested case

 

hearing on the matter pursuant to the administrative procedures act

 

of 1969, 1969 PA 306, MCL 24.201 to 24.328. A petition filed more

 

than 60 days after action on the permit application may be rejected

 

by the department commission as being untimely.

 

     Sec. 3120. (1) Until October 1, 2019, an application for a new

 

permit, a reissuance of a permit, or a modification of an existing


permit under this part authorizing a discharge into surface water,

 

other than a storm water discharge, shall must be accompanied by an

 

application fee as follows:

 

     (a) For an EPA major facility permit, $750.00.

 

     (b) For an EPA minor facility individual permit, a CSO permit,

 

or a wastewater stabilization lagoon individual permit, $400.00.

 

     (c) For an EPA minor facility general permit, $75.00.

 

     (2) Within 180 days after receipt of a complete application

 

for a new or increased use permit, the department shall either

 

grant or deny the permit, unless the applicant and the department

 

agree to extend this time period.

 

     (3) By September 30 of the year following the submittal of a

 

complete application for reissuance of a permit, the department

 

shall either grant or deny the permit, unless the applicant and the

 

department agree to extend this time period.

 

     (4) If the department fails to make a decision on an

 

application within the applicable time period under subsection (2)

 

or (3), the department shall return to the applicant the

 

application fee submitted under subsection (1) and the applicant

 

shall is not be subject to an application fee and the department

 

shall receive grant a 15% annual discount on an the annual permit

 

fee required for a permit issued based upon that application.

 

     (5) Until October 1, 2019, a person who receives a permit

 

under this part authorizing a discharge into surface water, other

 

than a stormwater discharge, is subject to an annual permit fee as

 

follows:

 

     (a) For an industrial or commercial facility that is an EPA


major facility, $8,700.00.

 

     (b) For an industrial or commercial facility that is an EPA

 

minor facility, the following amounts:

 

     (i) For a general permit for a low-flow facility, $150.00.

 

     (ii) For a general permit for a high-flow facility, $400.00.

 

     (iii) For an individual permit for a low-flow facility,

 

$1,650.00.

 

     (iv) For an individual permit for a high-flow facility,

 

$3,650.00.

 

     (c) For a municipal facility that is an EPA major facility,

 

the following amounts:

 

     (i) For an individual permit for a facility discharging 500

 

MGD or more, $213,000.00.

 

     (ii) For an individual permit for a facility discharging 50

 

MGD or more but less than 500 MGD, $20,000.00.

 

     (iii) For an individual permit for a facility discharging 10

 

MGD or more but less than 50 MGD, $13,000.00.

 

     (iv) For an individual permit for a facility discharging less

 

than 10 MGD, $5,500.00.

 

     (d) For a municipal facility that is an EPA minor facility,

 

the following amounts:

 

     (i) For an individual permit for a facility discharging 10 MGD

 

or more, $3,775.00.

 

     (ii) For an individual permit for a facility discharging 1 MGD

 

or more but less than 10 MGD, $3,000.00.

 

     (iii) For an individual permit for a facility discharging less

 

than 1 MGD, $1,950.00.


     (iv) For a general permit for a high-flow facility, $600.00.

 

     (v) For a general permit for a low-flow facility, $400.00.

 

     (e) For a municipal facility that is a CSO facility,

 

$6,000.00.

 

     (f) For an individual permit for a wastewater stabilization

 

lagoon, $1,525.00.

 

     (g) For an individual or general permit for an agricultural

 

purpose, $600.00, unless either of the following applies:

 

     (i) The facility is an EPA minor facility and would qualify

 

for a general permit for a low-flow facility, in which case the fee

 

is $150.00.

 

     (ii) The facility is an EPA major facility that is not a

 

farmers' cooperative corporation, in which case the fee is

 

$8,700.00.

 

     (h) For a facility that holds a permit issued under this part

 

but has no discharge and is connected to and is authorized to

 

discharge only to a municipal wastewater treatment system, an

 

annual permit maintenance fee of $100.00. However, if a facility

 

does have a discharge or at some point is no longer connected to a

 

municipal wastewater treatment system, the annual permit fee shall

 

be is the appropriate fee as otherwise provided in this subsection.

 

     (6) If the person required to pay an application fee under

 

subsection (1) or an annual permit fee under subsection (5) is a

 

municipality, the municipality may pass on the application fee or

 

the annual permit fee, or both, to each user of the municipal

 

facility.

 

     (7) The department shall send invoices for annual permit fees


under subsection (5) to all permit holders by December 1 of each

 

year. The fee shall must be based on the status of the facility as

 

of October 1 of that year. A person subject to an annual permit fee

 

shall pay the fee not later than January 15 of each year. Failure

 

by the department to send an invoice by the deadline, or failure of

 

a person to receive an invoice, does not relieve that person of his

 

or her obligation to pay the annual permit fee. If the department

 

does not meet the December 1 deadline for sending invoices, the

 

annual permit fee is due not later than 45 days after receiving an

 

invoice. The department shall forward annual permit fees received

 

under this section to the state treasurer for deposit into the

 

national pollutant discharge elimination system fund created in

 

section 3121.

 

     (8) The department shall assess a penalty on all annual permit

 

fee payments submitted under this section after the due date . The

 

penalty shall be in an amount equal to 0.75% of the payment due for

 

each month or portion of a month the payment remains past due.

 

     (9) Following payment of an annual permit fee, if a permittee

 

wishes to challenge its annual permit fee under this section, the

 

owner or operator shall submit the challenge in writing to the

 

department. The department shall not process the challenge unless

 

it is received by the department by March 1 of the year the payment

 

is due. A challenge shall must identify the facility and state the

 

grounds upon which the challenge is based. Within 30 calendar days

 

after receipt of the challenge, the department shall determine the

 

validity of the challenge and provide the permittee with

 

notification of a revised annual permit fee and a refund, if


appropriate, or a statement setting forth the reason or reasons why

 

the annual permit fee was not revised. If the owner or operator of

 

a facility desires to further challenge its annual permit fee, the

 

owner or operator of the facility has an opportunity for a

 

contested case hearing before the commission as provided for under

 

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

to 24.328.

 

     (10) The attorney general may bring an action for the

 

collection of the annual permit fee imposed under this section.

 

     (11) As used in this section:

 

     (a) "Agricultural purpose" means the agricultural production

 

or processing of those plants and animals useful to human beings

 

produced by agriculture and includes, but is not limited to,

 

forages and sod crops, grains and feed crops, field crops, dairy

 

animals and dairy products, poultry and poultry products, cervidae,

 

livestock, including breeding and grazing, equine, fish and other

 

aquacultural products, bees and bee products, berries, herbs,

 

fruits, vegetables, flowers, seeds, grasses, nursery stock, trees

 

and tree products, mushrooms, and other similar products, or any

 

other product, as determined by the commission of agriculture and

 

rural development, that incorporates the use of food, feed, fiber,

 

or fur. Agricultural purpose includes an operation or facility that

 

produces wine.

 

     (b) "Combined sewer overflow" means a discharge from a

 

combined sewer system that occurs when the flow capacity of the

 

combined sewer system is exceeded at a point prior to the headworks

 

of a publicly owned treatment works during wet weather conditions.


     (c) "Combined sewer system" means a sewer designed and used to

 

convey both storm water runoff and sanitary sewage, and that

 

contains lawfully installed regulators and control devices that

 

allow for delivery of sanitary flow to treatment during dry weather

 

periods and divert storm water and sanitary sewage to surface

 

waters during storm flow periods.

 

     (d) "CSO facility" means a facility whose discharge is solely

 

a combined sewer overflow.

 

     (e) "EPA major facility" means a facility that is designated

 

by the United States Environmental Protection Agency as being a

 

major facility under 40 CFR 122.2.

 

     (f) "EPA minor facility" means a facility that is not an EPA

 

major facility.

 

     (g) "Farmers' cooperative corporation" means a farmers'

 

cooperative corporation organized within the limitations of section

 

98 of 1931 PA 327, MCL 450.98.

 

     (h) "General permit" means a permit suitable for use at

 

facilities meeting eligibility criteria as specified in the permit.

 

With a general permit, the discharge from a specific facility is

 

acknowledged through a certificate of coverage issued to the

 

facility.

 

     (i) "High-flow facility" means a facility that discharges 1

 

MGD or more.

 

     (j) "Individual permit" means a permit developed for a

 

particular facility, taking into account that facility's specific

 

characteristics.

 

     (k) "Industrial or commercial facility" means a facility that


is not a municipal facility.

 

     (l) "Low-flow facility" means a facility that discharges less

 

than 1 MGD.

 

     (m) "MGD" means 1,000,000 gallons per day.

 

     (n) "Municipal facility" means a facility that is designed to

 

collect or treat sanitary wastewater, and is either publicly or

 

privately owned, and serves a residential area or a group of

 

municipalities.

 

     (o) "Wastewater stabilization lagoon" means a type of

 

treatment system constructed of ponds or basins designed to

 

receive, hold, and treat sanitary wastewater for a predetermined

 

amount of time through a combination of physical, biological, and

 

chemical processes.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.