Bill Text: MI SB0910 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Environmental protection; funding; clean Michigan initiative bond fund; modify criteria for grants and loans. Amends secs. 19601, 19607, 19608 & 19608a of 1994 PA 451 (MCL 324.19601 et seq.) & adds sec. 19608b.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-12-30 - Assigned Pa 0473'16 12/30/16 Addenda [SB0910 Detail]
Download: Michigan-2015-SB0910-Introduced.html
SENATE BILL No. 910
April 21, 2016, Introduced by Senator O'BRIEN and referred to the Committee on Commerce.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 19601, 19607, 19608, and 19608a (MCL
324.19601, 324.19607, 324.19608, and 324.19608a), sections 19601
and 19607 as added by 1998 PA 288, section 19608 as amended by 2012
PA 446, and section 19608a as added by 2003 PA 253, and by adding
section 19608b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 19601. As used in this part:
(a) "Baseline environmental assessment" means that term as
defined in sections 20101 and 21302.
(b) (a)
"Bonds" means the bonds
authorized under the clean
Michigan initiative act, 1998 PA 284, MCL 324.95101 to 324.95108.
(c) "Brownfield project" or "project" means the entire project
to be undertaken, including, but not limited to, the actual site
remediation and its resulting economic development.
(d) "Chief executive officer" means the mayor of a city, the
village manager of a village, the township supervisor of a
township, or the county executive of a county or, if the county
does not have an elected county executive, the chairperson of the
county board of commissioners.
(e) (b)
"Corrective action" means
that term as it is defined
in
part 213.section 21302.
(f) (c)
"Department" means the
department of environmental
quality.
(g) "Due care activities" means those activities conducted
under sections 20107a and 21304c.
(h) "Eligible activities" for projects with funding allocated
under section 19608(1)(a)(iv) means:
(i) Baseline environmental assessment activities.
(ii) Investigations.
(iii) Due care activities.
(iv) Response activities, including response activities that
are more protective of the public health, safety, and welfare and
the environment than required by section 20107a or 21304c.
(v) Removal and closure of underground storage tanks pursuant
to parts 211 and 213.
(vi) Dust control related to construction activities.
(vii) Industrial cleaning.
(viii) Sheeting and shoring necessary for the removal of
materials exceeding part 201 cleanup criteria at projects requiring
a permit under part 301, 303, or 325.
(ix) The following activities, provided that the total cost of
these activities does not exceed the total cost of project-related
activities identified in subparagraphs (i) to (viii):
(A) Disposal of solid waste, as defined in part 115, from the
eligible property, provided it was not generated or accumulated by
the authority or the developer.
(B) Lead, asbestos, or mold abatement, and demolition of
structures that are not a response activity.
(C) Removal and disposal of lake or river sediments exceeding
part 201 unrestricted criteria from, at, or related to an economic
development project if the upland property either is a facility or
would become a facility as a result of the deposition of dredged
spoils.
(i) "Eligible property" for projects with funding allocated
under section 19608(1)(a)(iv) means property that is known or
suspected to be a facility under part 201 or a site or property
under part 213 and that was used or is currently being used for
commercial, industrial, public, or residential purposes.
(j) (d)
"Facility" means that
term as it is defined in part
201.
(k) (e)
"Fund" means the clean
Michigan initiative bond fund
created in section 19606.
(l) (f)
"Gaming facility" means a
gaming facility regulated
under
the Michigan gaming control and revenue act, the Initiated
Law
of 1996, 1996 IL 1, MCL 432.201 to 432.226.
(m) (g)
"Local unit of
government" means a county, city,
village, or township, or an agency of a county, city, village, or
township; or a brownfield redevelopment authority, economic
development authority, or an authority or other public body created
by or pursuant to state law.
(n) "Measurable economic benefit" means the permanent jobs
that are created or retained, the capital invested, or the
increased tax base to the applicable county, city, village, and
township where the project is located.
(o) "Measurable environmental benefit" means the extent that
the requirements of part 201 or part 213, or both, are advanced at
a brownfield project where environmental conditions inhibit the
site's redevelopment or reuse.
(p) "Part 213 property" means a property as defined in section
21303.
(q) (h)
"Response activity" means
that term as it is defined
in part 201 or corrective action as defined in part 213.
Sec. 19607. (1) The total proceeds of all bonds shall be
deposited into the fund and allocated as follows:
(a)
Not more than $335,000,000.00 shall be used for response
eligible activities at facilities and part 213 properties.
(b) Not more than $50,000,000.00 shall be used for waterfront
improvements.
(c) Not more than $25,000,000.00 shall be used for remediation
of contaminated lake and river sediments.
(d) Not more than $50,000,000.00 shall be used for nonpoint
source pollution prevention and control projects or wellhead
protection projects.
(e) Not more than $90,000,000.00 shall be used for water
quality monitoring and water resources protection and pollution
control activities.
(f) Not more than $20,000,000.00 shall be used for pollution
prevention programs.
(g)
Not Except as provided
under subsection (1)(a), not more
than $5,000,000.00 shall be used to abate lead hazards.
(h) Not more than $50,000,000.00 shall be used for state park
infrastructure improvements.
(i) Not more than $50,000,000.00 shall be used for local
recreation projects.
(2) The state treasurer shall direct the investment of the
fund. Except as may be required to maintain the exclusion from
gross income of the interest paid on the bonds or to comply
otherwise with state or federal law, interest and earnings from
investment of the proceeds of any bond issue shall be allocated in
the same proportion as earned on the investment of the proceeds of
the bond issue.
(3) Except as may be required to maintain the exclusion from
gross income of the interest paid on the bonds or to comply
otherwise with state or federal law, all repayments of principal
and interest earned under a loan program authorized by this part
shall be credited to the appropriate restricted subaccount of the
fund and used for the purposes authorized for that subaccount or to
pay debt service on any obligation issued which pledges the loan
repayments and the proceeds of which are deposited in that
subaccount.
(4) The bond proceeds shall be expended in an appropriate
manner that maintains the tax exempt status of the bonds.
(5) The unencumbered balance in the fund at the close of the
fiscal year shall remain in the fund and shall not revert to the
general fund.
(6) The department shall provide an annual accounting of bond
proceeds spending on a cash basis to the department of treasury in
order for the state to comply with requirements set forth for
issuing tax exempt bonds, including arbitrage rebate calculations.
This accounting shall be submitted 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.
Sec. 19608. (1) Money in the fund that is allocated under
section 19607 shall be used for the following purposes:
(a) Money allocated under section 19607(1)(a) shall be used by
the department to fund all of the following:
(i) Corrective actions undertaken by the department to address
releases from leaking underground storage tanks pursuant to part
213.
(ii) Response activities undertaken by the department at
facilities pursuant to part 201 to address public health and
environmental problems or to promote redevelopment.
(iii) Assessment activities undertaken by the department to
determine whether a property is a facility.
(iv) $75,000,000.00 shall be used to provide grants and loans
to
local units of government and brownfield redevelopment
authorities
created under the brownfield redevelopment financing
act,
1996 PA 381, MCL 125.2651 to 125.2672, for response eligible
activities
at known or suspected facilities eligible properties
with redevelopment potential. Of the money provided for in this
subparagraph, not more than $50,000,000.00 shall be used to provide
grants and not more than $25,000,000.00 shall be used to provide
loans pursuant to the clean Michigan initiative grant and revolving
loan program created in section 19608a. However, grants or loans
provided for in this subparagraph shall not be made to a local unit
of
government or a brownfield redevelopment authority that is
responsible for causing a release or threat of release under part
201 or part 213 at the site proposed for grant or loan funding,
except as provided in section 19608b(f).
(b) Money allocated under section 19607(1)(b) shall be used
for waterfront redevelopment grants pursuant to part 795.
(c) Money allocated under section 19607(1)(c) shall be used
for response activities for the remediation of contaminated lake
and river sediments pursuant to part 201.
(d) Money allocated under section 19607(1)(d) shall be used
for nonpoint source pollution prevention and control grants or
wellhead
protection grants pursuant to under
part 88.
(e) Money allocated under section 19607(1)(e) shall be
deposited into the clean water fund created in section 8807.
(f) Money allocated under section 19607(1)(f) shall be
expended as follows:
(i) $10,000,000.00 shall be deposited into the retired
engineers technical assistance program fund created in section
14512.
(ii) $5,000,000.00 shall be deposited into the small business
pollution prevention assistance revolving loan fund created in
section 14513.
(iii) $5,000,000.00 shall be used by the department to
implement pollution prevention activities other than those funded
under subparagraphs (i) and (ii).
(g) Money that is allocated under section 19607(1)(g) shall be
used
by the department of community health and human services for
remediation and physical improvements to structures to abate or
minimize exposure of persons to lead hazards.
(h) Money allocated under section 19607(1)(h) shall be used
for infrastructure improvements at Michigan state parks as
determined by the department of natural resources. The installation
or upgrade of drinking water systems or rest room facilities shall
be the first priority.
(i) Money allocated under section 19607(1)(i) shall be used to
provide grants to local units of government for local recreation
projects
pursuant to under part 716.
(2) Of the money allocated under section 19607(1)(a),
$93,000,000.00 shall be used for facilities or part 213 properties
that pose an imminent or substantial endangerment to the public
health, safety, or welfare, or to the environment. For purposes of
this subsection, facilities or part 213 properties that pose an
imminent
or substantial endangerment shall include, but are not
limited to, those where public access poses hazards because of
potential exposure to chemicals or safety risks and where drinking
water supplies are threatened by contamination.
(3) Before expending any funds allocated under subsection
(1)(c)
at a site that is an area of concern as designated by the
parties to the Great Lakes water quality agreement of 1978 as
amended by protocol signed September 7, 2012, the department shall
notify the public advisory council established to oversee that area
of concern regarding the development, implementation, and
evaluation of response activities to be conducted with money in the
fund at that area of concern.
(4)
Money in the fund shall not be used to develop a municipal
or
commercial marina.
(4) (5)
Money provided in the fund
may be used by the
department of treasury to pay for the cost of issuing bonds and by
the department and the department of natural resources to pay
department costs as provided in this subsection. Not more than 3%
of the total amount specified in section 19607(1)(a) to (f) shall
be available for appropriation to the department to pay its costs
directly associated with the completion of a project authorized by
section 19607(1)(a) to (f). Not more than 3% of the total amount
specified in section 19607(1)(h) and (i) shall be available for
appropriation to the department of natural resources to pay its
costs directly associated with the completion of a project
authorized by section 19607(1)(h) and (i). It is the intent of the
legislature that general fund appropriations to the department and
to the department of natural resources shall not be reduced as a
result of costs funded pursuant to this subsection.
(5) (6)
A grant shall not be provided under
this part for a
project that is located at any of the following:
(a) Land sited for use as a gaming facility or as a stadium or
arena for use by a professional sports team.
(b) Land or other facilities owned or operated by a gaming
facility or by a stadium or arena for use by a professional sports
team.
(c) Land within a project area described in a project plan
pursuant to the economic development corporations act, 1974 PA 338,
MCL 125.1601 to 125.1636, for a gaming facility.
(6) (7)
The department, the department of
natural resources,
and
the department of community health and human services shall
each submit annually a list of all projects that will be undertaken
by that department that are recommended to be funded under this
part. The list shall be submitted 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. The list shall be
submitted to the legislative committees not later than February 15
of each year. This list shall also be submitted before any request
for supplemental appropriation of bond funds. For each eligible
project, the list shall include 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 administering state department. A
project that is funded by a grant or loan with money from the fund
does not need to be included on the list submitted under this
subsection. However, money in the fund that is appropriated for
grants and loans shall not be encumbered or expended until the
administering state department has reported those projects that
have been approved for a grant or a loan to 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 to the appropriations subcommittees in the
house of representatives and the senate on natural resources and
environmental
quality. Before submitting the first cycle of
recommended
projects under subsection (1)(a), the The department
shall
publish and disseminate post
on its website the criteria it
will
use in evaluating and recommending these projects for funding
under this part.
(7) (8)
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.
(8) (9)
Not later than December 31 of each
year, the
department, the department of natural resources, and the department
of
community health and human
services shall each submit a list of
the projects financed under this part by that department 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
subcommittees of the house of representatives and the senate on
appropriations on natural resources and environmental quality. Each
list shall include the name, address, and telephone number of the
recipient or participant, if appropriate; the name and location of
the project; the nature of the project; the amount of money
allocated to the project; the county in which the project is
located; a brief summary of what has been accomplished by the
project; and other information considered pertinent by the
administering state department.
Sec. 19608a. (1) The department shall create a clean Michigan
initiative grant and revolving loan program for the purpose of
making
grants and loans to local units of government and brownfield
redevelopment
authorities created under the brownfield
redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2672,
for
response activities at known or suspected facilities with
redevelopment
potential.under section
19608(1)(a)(iv) for eligible
activities at eligible properties with redevelopment potential.
(2)
The department shall accept, and consider for approval,
applications
for loans throughout the year. The department shall
develop
written instructions for prospective applicants, including
the
criteria that will be used in application review and approval.
(3)
Final application decisions shall be made by the
department
within 90 days of submittal of a complete loan
application.
(4)
A complete application shall include all of the following:
(a)
A description of the proposed eligible activities.
(b)
An itemized budget for the proposed eligible activities.
(c)
A schedule for the completion of the proposed eligible
activities.
(d)
The location of the property.
(e)
The current ownership and ownership history of the
property.
(f)
The current use of the property.
(g)
A detailed history of the use of the property.
(h)
The existing and proposed future zoning of the property.
(i)
If the property is not owned by the applicant, a draft of
an
enforceable agreement between the property owner and the
applicant
that commits the property owner to cooperate with the
applicant,
including a commitment to allow access to the property
to
complete, at a minimum, the proposed eligible activities.
(j)
A description of the property's economic redevelopment
potential.
(k)
A resolution from the governing body of the applicant
committing
to repayment of the loan according to the terms of this
section.
(l) Other information as specified by the department
in its
written
instructions.
(5)
To receive loan funds, approved applicants must enter into
a
loan agreement with the department. At a minimum, the loan
agreement
shall contain all of the following:
(a)
The approved eligible activities to be undertaken with
loan
funds.
(b)
An implementation schedule for the approved eligible
activities.
(c)
Reporting requirements, including, at a minimum, the
following:
(i) The loan recipient shall submit a progress status
report
to
the department every 6 months during the implementation
schedule.
(ii) The loan recipient shall provide a final report
within 3
months
of completion of the loan-funded activities that includes
documentation
of project costs and expenditures, including invoices
and
proof of payment.
(d)
If the property is not owned by the loan recipient, an
executed
agreement that has been approved by the department that
meets
the requirements of subsection (4)(i).
(e)
Other provisions as considered appropriate by the
department.
(6)
As used in this section:
(a)
"Baseline environmental assessment" and "response
activity"
mean those terms as they are defined in section 20101.
(b)
"Due care activities" means those activities conducted
under
section 20107a.
(c)
"Eligible activities" means baseline environmental
assessment
activities, due care activities, and any additional
response
activity. Eligible activities include only those
activities
necessary to facilitate redevelopment. All eligible
activities
must be consistent with a work plan or remedial action
plan
pursuant to section 15 of the brownfield redevelopment
financing
act, 1996 PA 381, MCL 125.2665. Unless otherwise approved
by
the director, only activities carried out and costs incurred
after
execution of a loan agreement are eligible.
(2) Grants provided under the clean Michigan initiative grant
and revolving loan program that are used solely to determine
whether a property is a site or a facility and, if so, to
characterize the nature and extent of the contamination by means of
an assessment or investigation shall be issued 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 subdivision does not require a specific development
proposal to be identified.
(3) The department shall not make a grant or a loan under the
clean Michigan initiative grant and revolving loan program unless
all of the following conditions are met:
(a) The applicant demonstrates that the proposed project is
in, or will result in, compliance with all applicable state laws
and rules.
(b) The applicant demonstrates to the department the
capability to carry out the proposed project.
(c) The applicant demonstrates to the department that there is
an identifiable source of funds for the future maintenance and
operation of the activities funded with money from the fund, if
appropriate.
(d) Within the last 24 months, the applicant has successfully
undergone an audit conducted in accordance with generally accepted
auditing standards or an emergency manager has been appointed for
the applicant under the local financial stability and choice act,
2012 PA 436, MCL 141.1541 to 141.1575.
(e) Within the last 24 months, the department has not revoked
or terminated a grant to the applicant and the administering state
department has not determined that the applicant demonstrated an
inability to manage a grant.
Sec. 19608b. With respect to the grants and loans under
section 19608(1)(a)(iv), all of the following conditions apply:
(a) An applicant must be a local unit of government.
(b) A recipient is not eligible to receive more than the
following:
(i) Except as provided in subparagraphs (iii) and (iv), 1
grant per year, not to exceed $1,000,000.00 per grant.
(ii) Except as provided in subparagraphs (iii) and (iv), 1
loan per year, not to exceed $1,000,000.00 per loan.
(iii) Brownfield projects that have significant economic and
environmental benefit may be considered for more than 1 grant or
loan over consecutive years, provided that the loan or grant
agreement includes project-specific benchmarks for eligible
activities and failure to satisfy a benchmark would terminate the
project's eligibility for additional grant or loan funding, as
applicable.
(iv) A local unit of government may be considered for and
awarded more than 1 grant or loan in a single year relating to
multiple unrelated brownfield projects if the projects are
determined to have significant environmental or economic benefits
to the recipient's municipality or region.
(c) Except for a grant described in section 19608a(2), the
department may award a grant only if it determines that both of the
following apply:
(i) The property is an eligible property.
(ii) The proposed development of the property is expected to
result in measurable economic benefit in excess of the grant amount
requested by the applicant.
(d) The department may award a loan only if it determines that
both of the following apply:
(i) The property is known or suspected to be an eligible
property.
(ii) The property has economic development potential based on
the applicant's planned use of the property.
(e) The department may approve funding for response activities
that are more protective of the public health, safety, and welfare
and the environment than required by section 20107a or 21304c if
those activities provide public health or environmental benefit. In
its review of a work plan that includes activities that are more
protective of the public health, safety, and welfare and the
environment, the department may consider, but is not limited to,
all of the following:
(i) Proposed new land use and reliability of restrictions to
prevent exposure to contamination.
(ii) Cost of implementation activities minimally necessary to
satisfy due care requirements, the incremental cost of response
activities relative to the cost of activities minimally necessary
to satisfy due care requirements, and the total cost of all
response activities.
(iii) Long-term obligations associated with leaving
contamination in place and the value of reducing or eliminating
these obligations.
(f) A grant or loan shall not be used to fund response
activities that benefit a party that is responsible for an activity
causing a release at the eligible property, except that a loan may
be used to fund appropriate response activities related to
redevelopment and due care activities necessary to facilitate
redevelopment of the property if the party that is responsible for
an activity causing a release at the eligible property meets all of
the following:
(i) Is a local unit of government.
(ii) Has a proposed redevelopment for the property with
measurable economic benefit.
(iii) Provides a minimum of 50% local matching funds for the
project.
(g) A grant or loan may be used to fund due care activities
necessary to facilitate redevelopment if the party responsible for
an activity causing a release is not the developer of proposed
redevelopment.
(h) A loan may be used to fund response activities if both of
the following are met:
(i) A party responsible for an activity causing a release is
neither the seller nor the developer of the property to receive
funding.
(ii) The recipient can show that response activities are
appropriate in relation to the redevelopment.
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. 911.
(b) Senate Bill No. 908.
(c) Senate Bill No. 913.
(d) Senate Bill No. 909.
(e) Senate Bill No. 912.
