Bill Text: MI SB1442 | 2009-2010 | 95th Legislature | Introduced
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-Introduced.html
SENATE BILL No. 1442
July 28, 2010, Introduced by Senator BIRKHOLZ and referred to the Committee on Natural Resources and Environmental Affairs.
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, 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 subsection (2), the department may
expend not more than $200,000,000.00 of the money from the fund for
response activities to address nonpoint source water pollution at
facilities. Money shall be expended under this section as follows:
(a) Beginning on the effective date of the amendatory act that
added this section, not more than $100,000,000.00 may be expended
under this section.
(b) Beginning January 1, 2013, an additional $100,000,000.00
may be expended under this section 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.
(2) The department shall expend money under this section in
compliance with all of the following:
(a) The expenditure is used to address nonpoint source water
pollution.
(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 are 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) Response activities conducted at facilities shall be
prioritized by the department based upon a consideration of all of
the following:
(i) Actions necessary to address existing or imminent
unacceptable exposure risks arising from conditions that contribute
to nonpoint source water pollution.
(ii) Actions necessary to abate discharges to surface water
that exceed groundwater-surface water interface criteria as
provided for in part 201, including free product discharging to
surface water, with priority given to acute criteria.
(iii) Actions for operation and maintenance of remedial systems
that are required to achieve risk reduction objectives and preserve
the value of previous investment in the systems.
(iv) Monitoring to confirm effectiveness of response activities
or to confirm that further action is not required.
(v) Whether money is needed for the state's share of costs at
superfund sites in the state.
(vi) Whether money is needed for the state's share of costs at
facilities funded with United States environmental protection
agency rural brownfield grants or other comparable grants.
(vii) Actions required to be conducted at a specific time to
coordinate with other necessary activities, such as road
construction.
(viii) Actions that are relatively low cost and that, if
implemented, would achieve closure status at the facility.
(ix) Response activities to address facilities where data
demonstrate that cleanup criteria are exceeded and state-funded
risk reduction is warranted to address conditions that contribute
to nonpoint source water pollution.
(x) Whether response activities conducted at a facility are
likely to provide an economic benefit or prevent an economic harm.
(e) 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.
(3) 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.
For projects funded under subsection (1)(a), the report shall
include both of the following:
(a) How the project met the criteria described in subsection
(2)(a) to (d).
(b) 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.
(4) As used in this section, "facility", "release", and
"response activity" mean those terms as they are defined in part
201.
Sec. 5204c. The department may expend not more than
$25,000,000.00 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, not more
than $15,000,000.00 shall be used for grants and not more than
$10,000,000.00 shall be used for loans.
Sec. 19703a. Whenever bonds are issued under this part to
support the purposes of section 19708(1)(b), at least an equivalent
amount of bonds shall be issued under this part to support purposes
of section 19708(1)(a).
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
$675,000,000.00 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
$325,000,000.00 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
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) House Bill No. 6360.
(e) House Bill No. 6363.
(f) Senate Bill No. 1443.
(g) House Bill No. 6359.
