HOUSE BILL No. 6030


     May 8, 2002, Introduced by Rep. Callahan and referred to the Committee on Appropriations.


        A bill to amend 1994 PA 451, entitled

   "Natural resources and environmental protection act,"

   by amending section 8807 (MCL 324.8807), as added by 1998 PA 287,

   and by adding section 8807a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 8807.  (1) The clean water fund is created within the

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        state treasury.

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

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

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        shall direct the investment of the fund.  The state treasurer

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        shall credit to the fund interest and earnings from fund

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        investments.

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

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




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             (4) Except as otherwise provided in this section,  the

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        department shall expend  money in the fund  , upon appropriation,

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        for any of the following  SHALL BE EXPENDED AS FOLLOWS:

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             (a)  To implement the programs described in the department's

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        document entitled "A strategic environmental quality monitoring

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        program for Michigan's surface waters", dated January 1997.  In

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        implementing these programs, the department may contract with any

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        person.  $30,000,000.00 SHALL BE TRANSFERRED TO THE WATER QUALITY

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        TRUST FUND CREATED IN SECTION 8807A.

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             (b)  Water pollution control activities.  UP TO

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        $20,000,000.00, BUT NOT LESS THAN $5,000,000.00, BY THE DEPART-

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        MENT FOR LOW-INTEREST LOANS FOR STORM WATER POLLUTION PREVENTION

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        AND CONTROL PROJECTS FOR IMPAIRED OR THREATENED WATERS, WITH THE

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        PRIORITY BEING GIVEN TO PROJECTS AFFECTING WATERS WITH THE GREAT-

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        EST USE IMPAIRMENT.

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             (c)  Wellhead protection activities. UP TO $15,000,000.00,

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        BUT NOT LESS THAN $3,750,000.00, BY THE DEPARTMENT FOR A "CLEAN

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        LAKES PROGRAM".  FUNDS FROM THE CLEAN LAKES PROGRAM SHALL BE

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        EXPENDED TO DEVELOP AND IMPLEMENT INLAND LAKE AND LAKE ST. CLAIR

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        WATERSHED MANAGEMENT PLANS THAT REDUCE AND PREVENT POLLUTION FROM

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        NUTRIENTS, PESTICIDES, EROSION, AND OTHER NONPOINT SOURCES.  THE

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        DEPARTMENT MAY PROVIDE GRANTS FOR THIS PURPOSE TO LOCAL UNITS OF

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        GOVERNMENT, NONPROFIT ORGANIZATIONS, OR LAKE ASSOCIATIONS.

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             (d)  Storm water treatment projects and activities.  UP TO

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        $10,000,000.00, BUT NOT LESS THAN $2,500,000.00, BY THE DEPART-

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        MENT FOR AN "INNOVATIVE WATER POLLUTION PREVENTION AND CONTROL

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        TECHNOLOGIES DEMONSTRATION PROGRAM".  THE DEPARTMENT SHALL



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        PROVIDE GRANTS OR LOANS UNDER THIS PROGRAM TO MUNICIPALITIES FOR

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        THE DEMONSTRATION OF COST-EFFECTIVE ALTERNATIVES TO TRADITIONAL

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        WASTEWATER TREATMENT TECHNOLOGIES.

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             (E) UP TO $5,000,000.00, BUT NOT LESS THAN $1,250,000.00, BY

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        THE DEPARTMENT FOR CLOSING ABANDONED WELLS, WITH PRIORITY GIVEN

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        TO WELLS IN WELLHEAD PROTECTION AREAS WHOSE CLOSURE IS INCLUDED

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        IN APPROVED WELLHEAD PROTECTION PLANS.

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             (F) UP TO $10,000,000.00, BUT NOT LESS THAN $2,000,000.00,

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        BY THE DEPARTMENT FOR THE EXTENSION OF MUNICIPAL SEWER SYSTEMS TO

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        REPLACE SEPTIC TANKS IN AREAS WHERE CLUSTERS OF FAILING TANKS

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        HAVE BEEN DETERMINED TO CONTRIBUTE TO WATER QUALITY IMPAIRMENTS,

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        IF THE AREAS TO RECEIVE SEWER EXTENSIONS ARE ALREADY INTENSIVELY

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        DEVELOPED.

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             (5) Money in the fund shall not be expended for combined

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        sewer overflow corrections.

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              (6) The first priority for expenditure of money in the fund

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        shall be for the programs described in subsection (4)(a).

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              (7) Money in the fund shall not be expended until rules are

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        promulgated under section 8808.

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             SEC. 8807A.  (1) THE WATER QUALITY TRUST FUND IS CREATED

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        WITHIN THE STATE TREASURY.

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             (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS

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        FROM ANY SOURCE FOR DEPOSIT INTO THE WATER QUALITY TRUST FUND.

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        THE STATE TREASURER SHALL DIRECT THE INVESTMENT OF THE WATER

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        QUALITY TRUST FUND.  THE STATE TREASURER SHALL CREDIT TO THE

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        WATER QUALITY TRUST FUND INTEREST AND EARNINGS FROM WATER QUALITY

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        TRUST FUND INVESTMENTS.



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             (3) MONEY IN THE WATER QUALITY TRUST FUND AT THE CLOSE OF

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        THE FISCAL YEAR SHALL REMAIN IN THE WATER QUALITY TRUST FUND AND

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        SHALL NOT LAPSE TO THE GENERAL FUND.

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             (4) SUBJECT TO SUBSECTION (5), INTEREST AND EARNINGS ONLY

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        FROM THE WATER QUALITY TRUST FUND SHALL BE EXPENDED, UPON APPRO-

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        PRIATION, FOR WATER QUALITY MONITORING.

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             (5) FIFTY PERCENT OF THE MONEY EXPENDED FROM THE WATER QUAL-

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        ITY TRUST FUND EACH YEAR SHALL BE USED BY THE DEPARTMENT TO PRO-

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        VIDE GRANTS TO LOCAL UNITS OF GOVERNMENT OR NONPROFIT ORGANIZA-

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        TIONS FOR IMPLEMENTING MONITORING PROPOSALS APPROVED BY THE

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        DEPARTMENT.  PRIORITY FOR GRANTS SHALL BE GIVEN TO MONITORING

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        PROPOSALS TO DETERMINE THE SOURCE AND NATURE OF WATER QUALITY

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        IMPAIRMENTS AT LOCATIONS WITH A HISTORY OF WATER QUALITY SAMPLING

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        AND A HISTORY OF BEACH CLOSURES.

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             (6) THE DEPARTMENT SHALL MAKE ALL MONITORING INFORMATION

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        COLLECTED USING MONEY EXPENDED FROM THE WATER QUALITY TRUST FUND,

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        AFTER QUALITY ASSURANCE, ACCESSIBLE TO THE PUBLIC BOTH ELECTRONI-

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        CALLY AND IN PAPER FORMAT.





















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