Bill Text: MI SB1442 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Environmental protection; water pollution; Great Lakes water quality bonds; authorize to address nonpoint source water pollution associated with contaminated property. Amends secs. 5204 & 19708 of 1994 PA 451 (MCL 324.5204 & 324.19708) & adds secs. 5204b, 5204c & 19703a. TIE BAR WITH: HB 6359'10, HB 6360'10, HB 6363'10, SB 1267'10, SB 1345'10, SB 1346'10, SB 1348'10, SB 1443'10

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-11-10 - Referred To Second Reading [SB1442 Detail]

Download: Michigan-2009-SB1442-Engrossed.html

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SB-1442, As Passed Senate, November 4, 2010

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1442

 

 

 

 

 

 

 

 

 

 

 

     <<A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 5204 and 19708 (MCL 324.5204 and 324.19708),

 

section 5204 as amended by 2005 PA 253 and section 19708 as amended

 

by 2005 PA 256, and by adding sections 5204b, 5204c, 5204d, and 19703a.>>

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 5204. (1) The strategic water quality initiatives fund is

 

created within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments. The

 

authority shall act as fiscal agent for the fund in accordance with

 

the shared credit rating act, 1985 PA 227, MCL 141.1051 to

 

141.1076.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) The authority in consultation with the department shall

 

expend money from the fund, upon appropriation, only for the

 

following:

 

     (a) Loans under section 5202.

 

     (b) Grants under section 5204a.

 

     (c) Response activities to address nonpoint source water

 

pollution under section 5204b.

 

     (d) Grants and loans for brownfield sites under section 5204c.

 

     (e) (c) The costs of the authority and the department in

 

administering the fund.

 

     (5) The fund may be pledged as security for bonds to be issued

 

by the authority for the purpose of funding loans if authorized by

 

the state administrative board.

 

     Sec. 5204b. (1) Subject to section 5204c, the department may

 

expend, upon appropriation, not more than $140,000,000.00 of the

 

money from the fund for response activities to address nonpoint

 

source water pollution at facilities as follows:

 

     (a) For the state fiscal year ending September 30, 2011, not

 

more than $50,000,000.00 may be authorized for expenditure under

 

this section.

 

     (b) For the state fiscal year ending September 30, 2012, not

 

more than $50,000,000.00 may be authorized for expenditure under

 

this section.

 

     (c) Beginning October 1, 2012, any money not previously

 

authorized for expenditure under this section may be expended under

 

this section only if the department documents that it has achieved

 

the following performance objectives:

 

     (i) Increasing the level of investment in sewage collection and

 

treatment systems.

 

     (ii) Providing incentives for actions that not only improve

 

water quality but result in pollution prevention.

 

     (iii) Optimizing the cost benefit ratio of alternative designs

 

of sewage collection and treatment systems.

 

     (iv) Demonstrating progress toward maximizing risk reduction

 

and economic development objectives identified for projects funded

 

under this section.

 

     (2) The department shall expend money under this section in

 

compliance with all of the following:

 

     (a) The expenditure is used to improve the quality of the

 

waters of the state.

 

     (b) The expenditure is used only for facilities in which the

 

department does not know the identity of the person or persons who

 

are liable under part 201 for the release resulting in the water

 

pollution or the person or persons who are liable do not have

 

sufficient resources to fund the required response activities.

 

     (c) The facilities include property that is located within the

 

identified planning area boundaries of a publicly owned sanitary

 

sewer system eligible for funding under the state water pollution

 

control revolving fund established in section 16a of the shared

 

credit rating act, 1985 PA 227, MCL 141.1066a.

 

     (d) The expenditure is used for response activities necessary

 

to address existing or imminent unacceptable risks arising from

 

conditions that contribute to nonpoint source water pollution,

 

including expenses for project management activities within the

 

department.

 

     (3) In using funds to address nonpoint source water pollution

 

projects under this section, the department shall select projects

 

that, to the extent practicable, provide maximum benefit to the

 

state in protecting public health and the environment and

 

contributing to economic development.

 

     (4) Money expended to support project management within the

 

department to manage response activities at the facility shall be

 

expended pursuant to generally accepted accounting principles.

 

     (5) The department shall annually submit a report to the

 

standing committees of the senate and house of representatives with

 

jurisdiction over issues primarily pertaining to natural resources

 

and the environment and to the senate and house of representatives

 

appropriations subcommittees on natural resources and the

 

environment that describes the projects funded under this section

 

and includes an evaluation of how the expenditures, to the extent

 

practicable, provide maximum benefit to the state in protecting

 

public health and the environment and contributing to economic

 

development. For each project funded under this section, the report

 

shall include all of the following:

 

     (a) How the project met the criteria described in this

 

section.

 

     (b) The extent to which the project improved water quality or

 

prevented a risk to water quality as measured by the number of

 

individuals who benefit from the project.

 

     (c) The extent to which the project preserved infrastructure

 

investments that protect public health or prevented risks to water

 

quality as measured by the risk posed or the public health

 

protected.

 

     (d) The extent to which the project enhanced economic

 

development as measured by such factors including, but not limited

 

to, all of the following:

 

     (i) A net increase to the value of the properties in the

 

vicinity of the project.

 

     (ii) The creation of jobs.

 

     (iii) The extent to which the project contributed to leveraging

 

private investment in the vicinity of the project.

 

     (e) If the project included funding for project management

 

within the department, a breakdown of the amount of money used to

 

support the project management as justified using generally

 

accepted accounting principles.

 

     (6) The legislature finds that use of the fund for response

 

activities to address nonpoint source water pollution at facilities

 

is appropriate and necessary at this time. It is the intent of this

 

legislature that money from the fund shall not be utilized for

 

response activities to address nonpoint source water pollution at

 

facilities when the $150,000,000.00 has been expended under this

 

section and section 5204c.

 

     (7) As used in this section, "facility", "release", and

 

"response activity" mean those terms as they are defined in part

 

201.

 

Senate Bill No. 1442 as amended November 4, 2010

 

     Sec. 5204c. (1) The department may expend $10,000,000.00 of

 

money from the fund to provide brownfield redevelopment grants and

 

loans to municipalities and brownfield redevelopment authorities

 

created under the brownfield redevelopment financing act, 1996 PA

 

381, MCL 125.2651 to 125.2672, for response activities to address

 

nonpoint source water pollution at facilities. Of the money

 

expended under this section, $5,000,000.00 shall be used for grants

 

and $5,000,000.00 shall be used for loans. However, on September

 

30, 2014, if any money described in this section has not been

 

appropriated for the purposes of this section, that money may be

 

used for the purposes of section 5204b.

 

     (2) The department shall develop grant and loan application

 

materials to implement this section and shall accept applications

 

at any time throughout the year.

<<Sec. 5204d. The state may establish a grant program within the strategic water quality initiatives fund for the purpose of funding specific wastewater treatment facility infrastructure improvement projects designed to prevent chronic discharges and projected to have significant regional benefits to Great Lakes water quality and recreational opportunities. In establishing such a program, the state

may consider the recommendations of the advisory committee created in section 5317.>>

     Sec. 19703a. (1) Bonds issued under this part are subject to

the following:

     (a) For the state fiscal year ending on September 30, 2011,

bonds shall not be issued or expended under this part for the

purposes of section 5204b, unless the department of natural

resources and environment has established a fundable range of at

 

least $210,000,000.00 for that state fiscal year to fund projects

 

under the state water pollution control revolving fund created in

 

section 16a of the shared credit rating act, 1985 PA 227, MCL

 

141.1066a.

 

     (b) For the state fiscal year ending on September 30, 2012,

 

bonds shall not be issued or expended under this part for the

 

purposes of section 5204b, unless the department of natural

 

resources and environment has established a fundable range of at

 

least $259,000,000.00 for that state fiscal year to fund projects

 

under the state water pollution control revolving fund created in

 

section 16a of the shared credit rating act, 1985 PA 227, MCL

 

141.1066a, to the extent administratively possible and as long as

 

sufficient applications have been submitted to the department of

 

natural resources and environment.

 

     (c) For each state fiscal year beginning with the state fiscal

 

year ending September 30, 2013, the department of natural resources

 

and environment, in conjunction with the department of treasury,

 

shall seek to fully fund all eligible projects applying for

 

assistance under part 53, to the extent administratively possible,

 

utilizing the bond proceeds under this part as necessary to achieve

 

this goal, considering the recommendations of the state water

 

pollution control revolving fund advisory committee created in

 

section 5317.

 

     (2) If the department of natural resources and environment is

 

not able to establish a fundable range under subsection (1)(b) of

 

at least $259,000,000.00, the department of natural resources and

 

environment shall submit to the standing committees of the senate

 

and house of representatives with jurisdiction over issues

 

primarily pertaining to natural resources and the environment a

 

report detailing the reasons why the fundable range was not set at

 

this level.

 

     (3) As used in this section, "fundable range" means that term

 

as it is defined in section 5301.

 

     Sec. 19708. (1) Subject to subsections (2), (3), and (4), the

 

state treasurer shall transfer money in the fund as follows:

 

     (a) In aggregate, not more than $900,000,000.00

 

$710,000,000.00 of the money in the fund shall be deposited into

 

the state water pollution control revolving fund created in section

 

16a of the shared credit rating act, 1985 PA 227, MCL 141.1066a.

 

     (b) In aggregate, not more than $100,000,000.00

 

$290,000,000.00 of the money in the fund shall be deposited into

 

the strategic water quality initiatives fund created in section

 

5204.

 

     (2) Money in the fund may be used by the department of

 

treasury to pay for the cost of issuing bonds and the costs

 

incurred under section 19703(3).

 

     (3) Money from the fund shall not be used as the state match

 

for receipt of federal funds for purposes of the state water

 

pollution control revolving fund established under section 16a of

 

the shared credit rating act, 1985 PA 227, MCL 141.1066a, at 2002

 

state match levels. However, if federal revenues become available

 

at higher levels than were provided in 2002, money from the fund

 

may be used to match federal revenues in excess of 2002 levels.

 

     (3) (4) Bonds that are directly deposited into the state water

 

pollution control revolving fund or strategic water quality

 

initiatives fund as authorized by section 19703 shall be taken into

 

account for the purpose of determining the allocation and transfer

 

of money set forth in subsection (1).

 

     (4) Not later than 2 years after the effective date of the

 

amendatory act that added this subsection, the auditor general

 

shall conduct an audit of the fund to assure that the money in the

 

Senate Bill No. 1442 as amended November 4, 2010

 

fund has been expended in compliance with law. Not later than 4

 

years after the effective date of the amendatory act that added

 

this subsection, the auditor general shall update its initial audit

 

to assure that money in the fund has been expended in compliance

 

with law.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 1345.

 

     (b) Senate Bill No. 1346.

 

     (c) Senate Bill No. 1348.

 

     (d) Senate Bill No. 1443.

 

     (e) House Bill No. 6359.

 

     (f) House Bill No. 6360.

 

     (g) House Bill No. 6363.

<<(h) Senate Bill No. 1267.>>