SB-0560, As Passed House, October 16, 2003                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 560                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 451, entitled                                             

                                                                                

    "Natural resources and environmental protection act,"                       

                                                                                

    by amending section 3101 (MCL 324.3101), as amended by 2001 PA              

                                                                                

    114, and by adding sections 3122, 3123, and 3124.                           

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3101.  As used in this part:                                           

                                                                                

2       (a) "Aquatic nuisance species" means a nonindigenous species                

                                                                                

3   that threatens the diversity or abundance of native species or              

                                                                                

4   the ecological stability of infested waters, or commercial,                 

                                                                                

5   agricultural, aquacultural, or recreational activities dependent            

                                                                                

6   on such waters.                                                             

                                                                                

7       (b) "Ballast water" means water and associated solids taken                 

                                                                                

8   on board a vessel to control or maintain trim, draft, stability,            

                                                                                

9   or stresses on the vessel, without regard to the manner in which            

                                                                                

10  it is carried.                                                              

                                                                                


                                                                                

1       (c) "Ballast water treatment method" means a method of                      

                                                                                

2   treating ballast water and sediments to remove or destroy living            

                                                                                

3   biological organisms through 1 or more of the following:                    

                                                                                

4                                                                                (i) Filtration.                                                                     

                                                                                

5       (ii) The application of biocides or ultraviolet light.                       

                                                                                

6       (iii) Thermal methods.                                                       

                                                                                

7       (iv) Other treatment techniques approved by the department.                  

                                                                                

8       (d) "Department" means the department of environmental                      

                                                                                

9   quality.                                                                    

                                                                                

10      (e) "Detroit consumer price index" means the most                           

                                                                                

11  comprehensive index of consumer prices available for the Detroit            

                                                                                

12  area from the United States department of labor, bureau of labor            

                                                                                

13  statistics.                                                                 

                                                                                

14      (f) "Great Lakes" means the Great Lakes and their connecting                

                                                                                

15  waters, including  lake  Lake St. Clair.                                    

                                                                                

16      (g) "Group 1 facility" means a facility whose discharge is                  

                                                                                

17  described by R 323.2218 of the Michigan administrative code.                

                                                                                

18      (h) "Group 2 facility" means a facility whose discharge is                  

                                                                                

19  described by R 323.2210(y), 323.2215, or 323.2216 of the Michigan           

                                                                                

20  administrative code.                                                        

                                                                                

21      (i) "Group 3 facility" means a facility whose discharge is                  

                                                                                

22  described by R 323.2211 or 323.2213 of the Michigan                         

                                                                                

23  administrative code.                                                        

                                                                                

24      (j)  (g)  "Local unit" means a county, city, village, or                    

                                                                                

25  township or an agency or instrumentality of any of these                    

                                                                                

26  entities.                                                                   

                                                                                

27      (k)  (h)  "Municipality" means this state, a county, city,                  


                                                                                

1   village, or township, or an agency or instrumentality of any of             

                                                                                

2   these entities.                                                             

                                                                                

3                                                                                (l)  (i)  "Nonoceangoing vessel" means a vessel that is not                          

                                                                                

4   an oceangoing vessel.                                                       

                                                                                

5       (m)  (j)  "Oceangoing vessel" means a vessel that operates on               

                                                                                

6   the Great Lakes or the St. Lawrence waterway after operating in             

                                                                                

7   waters outside of the Great Lakes or the St. Lawrence waterway.             

                                                                                

8       (n)  (k)  "Sediments" means any matter settled out of ballast               

                                                                                

9   water within a vessel.                                                      

                                                                                

10      (o)  (l)  "Sewage sludge" means sewage sludge generated in                  

                                                                                

11  the treatment of domestic sewage, other than only septage or                

                                                                                

12  industrial waste.                                                           

                                                                                

13      (p)  (m)  "Sewage sludge derivative" means a product for land               

                                                                                

14  application derived from sewage sludge that does not include                

                                                                                

15  solid waste or other waste regulated under this act.                        

                                                                                

16      (q)  (n)  "Sewage sludge generator" means a person who                      

                                                                                

17  generates sewage sludge that is applied to land.                            

                                                                                

18      (r)  (o)  "Sewage sludge distributor" means a person who                    

                                                                                

19  applies, markets, or distributes, except at retail, a sewage                

                                                                                

20  sludge derivative.                                                          

                                                                                

21      (s)  (p)  "St. Lawrence waterway" means the St. Lawrence                    

                                                                                

22  river, the St. Lawrence seaway, and the gulf of St. Lawrence.               

                                                                                

23      (t)  (q)  "Waters of the state" means groundwaters, lakes,                  

                                                                                

24  rivers, and streams and all other watercourses and waters,                  

                                                                                

25  including the Great Lakes, within the jurisdiction of this                  

                                                                                

26  state.                                                                      

                                                                                

27      Sec. 3122.  (1) An application for a permit to discharge                    


     Senate Bill No. 560 (H-6) as amended October 14, 2003

   

1   wastewater to the ground or ground water of this state pursuant             

                                                                                

2   to section 3112 shall be submitted to the department.  Within 90            

                                                                                

3   days after an application is received, the department shall                 

                                                                                

4   determine whether the application is administratively complete.             

                                                                                

5   If the department determines that an application is not complete,           

                                                                                

6   the department shall notify the applicant in writing within this            

                                                                                

7   time period.  If the department does not make a determination as            

                                                                                

8   to whether the application is complete within this time period,             

                                                                                

9   the application shall be considered to be complete.                         

                                                                                

10      (2) Until October 1, 2005, [except as otherwise provided in this section,] an application under subsection                                                    

                                                                                

11  (1) shall be accompanied by an application fee as follows:                  

                                                                                

12      (a) For a group 1 facility, $500.00.                                        

                                                                                

13      (b) For a group 2 facility, $300.00.                                        

                                                                                

14      (c) For a group 3 facility, $50.00.                                         

                                                                                

15      (3) Within 180 days after receipt of a complete application                 

                                                                                

16  permit, the department shall either grant or deny the permit,               

                                                                                

17  unless the applicant and the department agree to extend this time           

                                                                                

18  period.  For renewals of permits described in subsection (1) in             

                                                                                

19  which no discharge change in the permit is requested, if the                

                                                                                

20  department determines that there were no compliance violations or           

                                                                                

21  reporting abnormalities during the term of the existing permit,             

                                                                                

22  the permit is automatically renewed for the same term as provided           

                                                                                

23  in the existing permit.                                                     

                                                                                

24      (4) Beginning July 1, 2005, if the department fails to make a               

                                                                                

25  decision on an application within the time period under                     

                                                                                

26  subsection (3), the department shall return to the applicant the            

                                                                                

27  application fee submitted under subsection (2) and the applicant            


     Senate Bill No. 560 (H-6) as amended October 14, 2003  (1 of 2)

   

1   shall receive a 15% annual discount on an annual groundwater                

                                                                                

2   discharge permit fee required under subsection (5) for a permit             

                                                                                

3   issued based upon that application.                                         

                                                                                

4       (5) Until October 1, 2005, [except as otherwise provided in this section,] the department may levy and                                                         

                                                                                

5   collect an annual groundwater discharge permit fee from                     

                                                                                

6   facilities that discharge wastewater to the ground or groundwater           

                                                                                

7   of this state pursuant to section 3112.  The fee shall be as                

                                                                                

8   follows:                                                                    

                                                                                

9       (a) For a group 1 facility, $3,650.00.                                      

                                                                                

10      (b) For a group 2 facility, $1,500.00.                                      

                                                                                

11      (c) For a group 3 facility, $200.00.                                        

       [(6) A business with fewer than 20 employees is not subject to the application fee under subsection (2) or the annual groundwater discharge permit fee under subsection (5).

      (7) A person applying for or obtaining a permit under this part for an agricultural purpose is not subject to the application fee under subsection (2) or the annual groundwater discharge permit fee under subsection (5).            

              (8) The following are not subject to the application fee under subsection (2) or the annual groundwater discharge permit fee under subsection (5):

     (a) A private nonprofit organization.

     (b) A school.

     (c) A school district.

     (d) A public college or university.

     (9) Construction companies discharging groundwater for the purpose of lowering a water table temporarily are not subject to the application fee under subsection (2) or the annual groundwater discharge permit under subsection (5).            

12      (10)] If the person required to pay the application fee under           

                                                                                

13  subsection (2) or the annual groundwater discharge permit fee               

                                                                                

14  under subsection (5) is a municipality, the municipality may pass           

                                                                                

15  on the application fee and the annual groundwater discharge                 

                                                                                

16  permit fee to each user of the municipal facility.  [In addition, a municipality with a population under 2,500 is not subject to the application fee under subsection (2) or the annual groundwater discharge permit fee under subsection (5).                                                                 

                                                                                

17      (11)] The department shall forward application fees collected               

                                                                                

18  under subsection (2) to the state treasurer for deposit into the            

                                                                                

19  groundwater discharge permit fund created in section 3124.                  

                                                                                

20      [(12)] Within 30 days after the effective date of the amendatory            

                                                                                

21  act that added this section, the department and the governor                

                                                                                

22  shall notify each person holding a permit under this part to                

                                                                                

23  discharge wastewater to the ground or groundwater of the                    

                                                                                

24  requirements of this section.                                               

        [(13) As used in this section, "agricultural purpose" means the agricultural production or processing of those plants and animals useful to human beings produced by agriculture and includes, but is not limited to, forages and sod crops, grains and feed crops, field crops, dairy animals and dairy products, poultry and poultry products, cervidae, livestock, including breeding and grazing, equine, fish and other aquacultural products, bees and bee products, berries, herbs, fruits, vegetables, flowers, seeds, grasses, nursery stock, trees and tree products, mushrooms, and other similar products, or any other product, as determined by the commission of agriculture, that incorporates the use of food, feed, fiber, or fur.  Agricultural purpose includes an operation or facility that produces wine.]     

25      Sec. 3123.  (1) The department shall send invoices for the                  

                                                                                

26  annual groundwater discharge permit fees under section 3122 to              

                                                                                

27  all permit holders by January 15 of each year.  Fees will be                


                                                                                

1   charged for all facilities authorized as of December 15 of each             

                                                                                

2   calendar year.  Payment shall be postmarked no later than March 1           

                                                                                

3   of each year.  The department shall forward money collected                 

                                                                                

4   pursuant to this section to the state treasurer for deposit into            

                                                                                

5   the groundwater discharge permit fund established under section             

                                                                                

6   3124.                                                                       

                                                                                

7       (2) The department shall assess a penalty on all fee payments               

                                                                                

8   submitted under this section after the due date.  The penalty               

                                                                                

9   shall be an amount equal to 0.75% of the payment due for each               

                                                                                

10  month or portion of a month the payment remains past due.                   

                                                                                

11  Failure to timely pay a fee imposed by this section is a                    

                                                                                

12  violation of this part and is cause for revocation of a permit              

                                                                                

13  issued under this part and may subject the discharger to                    

                                                                                

14  additional penalties pursuant to section 3115.                              

                                                                                

15      (3) The attorney general may bring an action for the                        

                                                                                

16  collection of the annual groundwater discharge permit fees                  

                                                                                

17  imposed under this section.                                                 

                                                                                

18      Sec. 3124.  (1) The groundwater discharge permit fund is                    

                                                                                

19  created within the state treasury.  The state treasurer may                 

                                                                                

20  receive money or other assets from any source for deposit into              

                                                                                

21  the groundwater discharge permit fund.  The state treasurer shall           

                                                                                

22  direct the investment of the groundwater discharge permit fund.             

                                                                                

23      (2) Money in the groundwater discharge permit fund at the                   

                                                                                

24  close of the fiscal year shall remain in the groundwater                    

                                                                                

25  discharge permit fund and shall not lapse to the general fund.              

                                                                                

26      (3) The state treasurer shall credit to the groundwater                     

                                                                                

27  discharge permit fund the interest and earnings from groundwater            


                                                                                

1   discharge permit fund investments.                                          

                                                                                

2       (4) The department shall expend money from the groundwater                  

                                                                                

3   discharge permit fund, upon appropriation, only to implement the            

                                                                                

4   department's groundwater protection programs.  However, in any              

                                                                                

5   state fiscal year, the department shall not expend more than                

                                                                                

6   $1,700,000.00 of money from the fund.  The department shall                 

                                                                                

7   expend 90% of the money in the fund at the close of each state              

                                                                                

8   fiscal year as a credit to offset, on a pro rata basis, each fee            

                                                                                

9   described in section 3122 for the following year.                           

                                                                                

10      (5) By March 1 annually, the department shall prepare and                   

                                                                                

11  submit to the governor, the legislature, the chair of the                   

                                                                                

12  standing committees of the senate and house of representatives              

                                                                                

13  with primary responsibility for issues related to natural                   

                                                                                

14  resources and the environment, and the chairs of the                        

                                                                                

15  subcommittees of the senate and house appropriations committees             

                                                                                

16  with primary responsibility for appropriations to the department            

                                                                                

17  a report that details the activities during the previous fiscal             

                                                                                

18  year in administering the department's groundwater discharge                

                                                                                

19  program that were funded by the groundwater discharge permit                

                                                                                

20  fund.  This report shall include, at a minimum, all of the                  

                                                                                

21  following as they relate to the department:                                 

                                                                                

22      (a) The number of full-time equated positions performing                    

                                                                                

23  groundwater permitting, compliance, and enforcement activities.             

                                                                                

24      (b) The number of applications received by the department,                  

                                                                                

25  reported as the number of applications determined to be                     

                                                                                

26  administratively incomplete and the number determined to be                 

                                                                                

27  administratively complete.                                                  


     Senate Bill No. 560 (H-6) as amended October 14, 2003

   

1       (c) The number of applications for groundwater permits                      

                                                                                

2   determined to be administratively complete for which a final                

                                                                                

3   action was taken by the department.  The number of final actions            

                                                                                

4   shall be reported as the number of applications approved, the               

                                                                                

5   number of applications denied, and the number of applications               

                                                                                

6   withdrawn by the applicant.                                                 

                                                                                

7       (d) The percentage and number of applications determined to                 

                                                                                

8   be administratively complete for which a final decision was made            

                                                                                

9   within the statutory time frame.                                            

                                                                                

10      (e) The number of inspections conducted at groundwater                      

                                                                                

11  facilities.                                                                 

                                                                                

12      (f) The number of violation letters sent.                                   

                                                                                

13      (g) The number of contested case hearings and civil actions                 

                                                                                

14  initiated and completed, the number of voluntary consent orders             

                                                                                

15  and administrative orders entered or issued, and the amount of              

                                                                                

16  fines and penalties collected through such actions or orders.               

                                                                                

17      (h) For each enforcement action that includes a penalty, a                  

                                                                                

18  description of what corrective actions were required by the                 

                                                                                

19  enforcement action.                                                         

                                                                                

20      (i) The number of groundwater complaints received,                          

                                                                                

21  investigated, resolved, and not resolved by the department.                 

                                                                                

22      (j) The amount of revenue in the groundwater discharge permit               

                                                                                

23  fund at the end of the fiscal year.                                         

                                                                                

24                                                                               [                                                          

                                                                                

25                   ]