HOUSE BILL No. 6211
June 18, 2002, Introduced by Reps. Kooiman, Pappageorge, Newell, Meyer, Voorhees, Vander Veen, Kowall, Bishop, Hart, Pestka, Stewart, Kolb and DeWeese and referred to the Committee on Land Use and Environment. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 11525 (MCL 324.11525), as amended by 1996 PA 506, and by adding sections 11532a and 11532b; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 11525. (1) The owner or operator of a landfill shall 2 establish and maintain a perpetual care fund for a period of 30 3 years after final closure of the landfill as specified in this 4 section. A perpetual care fund may be established as a trust or 5 an escrow account and may be used to demonstrate financial assur- 6 ance for type II landfills under section 11523 and 7 section 11523a. 8 (2) Except as otherwise provided in this section, the owner 9 or operator of a landfill shall deposit into his or her perpetual 07062'02 JCB 2 1 care fund 75 cents for each ton or portion of a ton or 25 cents 2 for each cubic yard or portion of a cubic yard of solid waste 3 that is disposed of in the landfill after June 17, 1990. The 4 deposits shall be made not less than semiannually until the fund 5 reaches the maximum required fund amount. As of July 1, 1996, 6 the maximum required fund amount is $1,156,000.00. This amount 7 shall be annually adjusted for inflation and rounded to the near- 8 est thousand. The department shall adjust the maximum required 9 fund amount for inflation annually by multiplying the amount by 10 an inflation factor derived from the most recent bureau of recla- 11 mation composite index published by the United States department 12 of commerce or another index more representative of the costs of 13 closure and postclosure monitoring and maintenance as determined 14 appropriate by the department. 15 (3) The owner or operator of a landfill that is used for the 16 disposal of the following materials shall deposit into the per- 17 petual care fund 7.5 cents for each ton or cubic yard or portion 18 of a ton or cubic yard of the following materials that are dis- 19 posed of in the landfill after June 17, 1990: 20 (a) Coal or wood ash that is disposed of in a landfill that 21 is used only for the disposal of coal or wood ash, or that is 22 permanently segregated in a landfill. 23 (b) Wastewater treatment sludge or sediments from wood pulp 24 or paper producing industries that is disposed of in a landfill 25 that is used only for the disposal of wastewater treatment sludge 26 and sediments from wood pulp or paper producing industries, or 27 that is permanently segregated in a landfill. 07062'02 3 1 (c) Foundry sand or other material that is approved by the 2 department for use as daily cover at an operating landfill, that 3 is disposed of in a landfill that is used only for the disposal 4 of foundry sand, or that is permanently segregated in a 5 landfill. 6 (4) The owner or operator of a landfill that is used only 7 for the disposal of a mixture of 2 or more of the materials 8 described in subsection (3)(a) to (c) or in which a mixture of 2 9 or more of these materials are permanently segregated shall 10 deposit into the perpetual care fund 7.5 cents for each ton or 11 cubic yard or portion of a ton or cubic yard of these materials 12 that are disposed of in the landfill after July 1, 1996. 13 (5) Money is not required to be deposited into a perpetual 14 care fund for materials that are regulated under part 631. 15 (6) The owner or operator of a landfill may contribute addi- 16 tional amounts into the perpetual care fund at his or her 17 discretion. 18 (7) The custodian of a perpetual care fund shall be a bank 19 or other financial institution that has the authority to act as a 20 custodian and whose account operations are regulated and examined 21 by a federal or state agency. Until the perpetual care fund 22 reaches the maximum required fund amount, the custodian of a per- 23 petual care fund shall credit interest and earnings of the per- 24 petual care fund to the perpetual care fund. However, upon the 25 direction of the owner or operator, the custodian may utilize the 26 interest and earnings of the perpetual care fund to pay the pro 27 rata share of the solid waste management program administration 07062'02 4 1 fee imposed under section 11525a against the landfill for which 2 the perpetual care fund was established. After the perpetual 3 care fund reaches the maximum required fund amount, interest and 4 earnings shall be distributed as directed by the owner or 5 operator. The agreement governing the operation of the perpetual 6 care fund shall be executed on a form consistent with this part 7 as prepared by the department. The custodian may be compensated 8 from the fund for reasonable fees and costs incurred for his or 9 her responsibilities as custodian. The custodian of a perpetual 10 care fund shall annually make an accounting to the department 11 within 30 days following the close of the state fiscal year. 12 (8) The custodian of a perpetual care fund shall not dis- 13 burse any funds to the owner or operator of a landfill for the 14 purposes of the perpetual care fund except upon the prior written 15 approval of the department. However, the custodian shall ensure 16 the filing of all required tax returns for which the perpetual 17 care fund is liable and shall disburse funds to pay lawfully due 18 taxes owed by the perpetual care fund without permission of the 19 department. , and may disburse interest and earnings of the per- 20 petual care fund to pay the solid waste management program admin- 21 istration fee as provided in subsection (7). The owner or opera- 22 tor of the landfill shall provide notice of requests for dis- 23 bursement and denials and approvals to the custodian of the per- 24 petual care fund. Requests for disbursement from a perpetual 25 care fund shall be submitted not more frequently than 26 semiannually. The owner or operator of a landfill may request 27 disbursement of funds from a perpetual care fund whenever the 07062'02 5 1 amount of money in the fund exceeds the maximum required fund 2 amount specified in subsection (2). The department shall approve 3 the disbursement provided the total amount of financial assurance 4 maintained meets the requirements of sections 11523 and 11523a. 5 As used in this subsection, "maximum required fund amount" 6 means: 7 (a) For those landfills containing only those materials 8 specified in subsection (3), an amount equal to 1/2 of the maxi- 9 mum required fund amount specified in subsection (2). 10 (b) For all other landfills, an amount equal to the maximum 11 required fund amount specified in subsection (2). 12 (9) If the owner or operator of a landfill refuses or fails 13 to conduct closure, postclosure monitoring and maintenance, or 14 corrective action as necessary to protect the public health, 15 safety, or welfare, or the environment or fails to request the 16 disbursement of money from a perpetual care fund when necessary 17 to protect the public health, safety, or welfare, or the environ- 18 ment, or fails to pay the solid waste management program admin- 19 istration fee due the department under this part within 90 days 20 of the request, then the department may require the disbursement 21 of money from the perpetual care fund and may expend the money 22 for closure, postclosure monitoring and maintenance, and correc- 23 tive action, as necessary. The department may assess a perpetual 24 care fund for administrative costs associated with actions taken 25 under this subsection. 26 (10) Upon approval by the department of a request to 27 terminate financial assurance for a landfill under section 07062'02 6 1 11525b, any money in the perpetual care fund for that landfill 2 shall be disbursed by the custodian to the owner of the landfill 3 unless a contract between the owner and the operator of the land- 4 fill provides otherwise. 5 (11) The owner of a landfill shall provide notice to the 6 custodian of the perpetual care fund for that landfill if there 7 is a change of ownership of the landfill. The custodian shall 8 maintain records of ownership of a landfill during the time in 9 which a perpetual care fund is established. 10 (12) This section does not relieve an owner or operator of a 11 landfill of any liability that he or she may have under this part 12 or as otherwise provided by law. 13 (13) This section does not create a cause of action at law 14 or in equity against a custodian of a perpetual care fund other 15 than for errors or omissions related to investments, accountings, 16 disbursements, filings of required tax returns, and maintenance 17 of records required by this section or the applicable perpetual 18 care fund. 19 (14) As used in this section, "custodian" means the trustee 20 or escrow agent of a perpetual care fund. 21 SEC. 11532A. (1) A SOLID WASTE DISPOSAL SURCHARGE OF $3.00 22 IS ASSESSED FOR EACH TON OF SOLID WASTE THAT IS DISPOSED OF IN A 23 LANDFILL. 24 (2) THE OWNER OR OPERATOR OF A LANDFILL SHALL FORWARD SOLID 25 WASTE DISPOSAL SURCHARGES UNDER THIS SECTION TO THE STATE TREA- 26 SURER FOR DEPOSIT INTO THE WASTE DIVERSION FUND CREATED IN 27 SECTION 11532B. 07062'02 7 1 SEC. 11532B. (1) THE WASTE DIVERSION FUND IS CREATED WITHIN 2 THE STATE TREASURY. 3 (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS 4 FROM ANY SOURCE FOR DEPOSIT INTO THE WASTE DIVERSION FUND. THE 5 STATE TREASURER SHALL DIRECT THE INVESTMENT OF THE WASTE DIVER- 6 SION FUND. THE STATE TREASURER SHALL CREDIT TO THE WASTE DIVER- 7 SION FUND INTEREST AND EARNINGS FROM FUND INVESTMENTS. 8 (3) MONEY IN THE WASTE DIVERSION FUND AT THE CLOSE OF THE 9 FISCAL YEAR SHALL REMAIN IN THE FUND AND SHALL NOT LAPSE TO THE 10 GENERAL FUND. 11 (4) THE DEPARTMENT, UPON APPROPRIATION, SHALL ANNUALLY 12 EXPEND MONEY IN THE WASTE DIVERSION FUND AS FOLLOWS: 13 (A) NOT MORE THAN $1,200,000.00 FOR THE IMPLEMENTATION OF 14 THIS PART. 15 (B) MONEY NOT EXPENDED UNDER SUBDIVISION (A) SHALL BE 16 EXPENDED AS FOLLOWS: 17 (i) ONE THIRD FOR RECYCLING PROGRAM GRANTS TO LOCAL UNITS OF 18 GOVERNMENT FOR NEW PROGRAMS THAT INCREASE RECYCLING PARTICIPATION 19 WITHIN LOCAL UNITS OF GOVERNMENT. 20 (ii) ONE THIRD FOR RECYCLING INCENTIVE GRANTS TO NONGOVERN- 21 MENTAL ENTITIES THAT HAVE ESTABLISHED PARTNERSHIPS WITH LOCAL 22 UNITS OF GOVERNMENT TO EXPAND RECYCLING PARTICIPATION. 23 (iii) ONE THIRD FOR RECYCLING INNOVATION GRANTS FOR PROJECTS 24 THAT EXPAND MARKETS FOR RECYCLABLE MATERIALS. 25 (5) THE DEPARTMENT SHALL PROVIDE FOR THE DISTRIBUTION OF 26 GRANTS UNDER SUBSECTION (4). 07062'02 8 1 Enacting section 1. Section 11525a of the natural resources 2 and environmental protection act, 1994 PA 451, MCL 324.11525a, is 3 repealed. 07062'02 Final page. JCB