HOUSE BILL No. 5802

March 1, 2006, Introduced by Reps. Alma Smith, Miller, Condino, Gleason, Accavitti, Anderson, Leland, Kolb, Brandenburg, Farrah, Stewart, Wojno, David Law, Zelenko, Donigan, Polidori, Hopgood, Lemmons, Jr., Vagnozzi, Kathleen Law, Virgil Smith, Gonzales, Lipsey, Plakas, Clack, Tobocman and Lemmons, III and referred to the Committee on Agriculture.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 3115 and 3120 (MCL 324.3115 and 324.3120),

 

section 3115 as amended by 2004 PA 143 and section 3120 as added by

 

2004 PA 91.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3115. (1) The department may request the attorney general

 

to commence a civil action for appropriate relief, including a

 

permanent or temporary injunction, for a violation of this part or  

 

a provision of  a permit or order issued or rule promulgated under

 

this part. An action under this subsection may be brought in the

 

circuit court for the county of Ingham or for the county in which

 

the defendant is located, resides, or is doing business. If

 

requested by the defendant within 21 days after service of process,

 

the court shall grant a change of venue to the circuit court for


 

the county of Ingham or for the county in which the alleged

 

violation occurred, is occurring, or, in the event of a threat of

 

violation, will occur. The court has jurisdiction to restrain the

 

violation and to require compliance. In addition to any other

 

relief granted under this subsection, the court, except as

 

otherwise provided in this subsection, shall impose a civil fine of

 

not less than $2,500.00 and the court may award reasonable attorney

 

fees and costs to the prevailing party. However, all of the

 

following apply:

 

     (a) The maximum fine imposed by the court shall be not more

 

than $25,000.00 per day of violation.

 

     (b) For a failure to report a release to the department or to

 

the primary public safety answering point under section 3111b(1),

 

the court shall impose a civil fine of not more than $2,500.00.

 

     (c) For a failure to report a release to the local health

 

department under section 3111b(2), the court shall impose a civil

 

fine of not more than $500.00.

 

     (2) A person who at the time of the violation knew or should

 

have known that he or she discharged a substance contrary to this

 

part, or contrary to a permit or order issued or rule promulgated

 

under this part, or who intentionally makes a false statement,

 

representation, or certification in an application for or form

 

pertaining to a permit or in a notice or report required by the

 

terms and conditions of  an issued  a permit, or who intentionally

 

renders inaccurate a monitoring device or record required to be

 

maintained by the department, is guilty of a felony and shall be

 

fined not less than $2,500.00 or more than $25,000.00 for each


 

violation. The court may impose an additional fine of not more than

 

$25,000.00 for each day during which the unlawful discharge

 

occurred. If the conviction is for a violation committed after a

 

first conviction of the person under this subsection, the court

 

shall impose a fine of not less than $25,000.00 per day and not

 

more than $50,000.00 per day of violation. Upon conviction, in

 

addition to a fine, the court in its discretion may sentence the

 

defendant to imprisonment for not more than 2 years or impose

 

probation.  upon a person for a violation of this part.  With the

 

exception of the issuance of criminal complaints, issuance of

 

warrants, and the holding of an arraignment, the circuit court for

 

the county in which the violation occurred has exclusive

 

jurisdiction. However, the person shall not be subject to the

 

penalties of this subsection if the discharge of the effluent is  

 

in conformance with and obedient to  authorized by a rule, order,

 

or permit of the department.  In addition to a fine, the attorney

 

general may file a civil suit in a court of competent jurisdiction

 

to recover the full value of the injuries done to the natural

 

resources of the state and the costs of surveillance and

 

enforcement by the state resulting from the violation.  

 

     (3) Upon a finding by the court that the actions of a civil

 

defendant pose or posed a substantial endangerment to the public

 

health, safety, or welfare, the court shall impose, in addition to

 

the sanctions set forth in subsection (1), a fine of not less than

 

$500,000.00 and not more than $5,000,000.00.

 

     (4) Upon a finding by the court that the actions of a criminal

 

defendant pose or posed a substantial endangerment to the public


 

health, safety, or welfare, the court shall impose, in addition to

 

the penalties set forth in subsection (2), a fine of not less than

 

$1,000,000.00 and, in addition to a fine, a sentence of 5 years'

 

imprisonment.

 

     (5) To find a defendant civilly or criminally liable for

 

substantial endangerment under subsection (3) or (4), the court  

 

shall  must determine that the defendant knowingly or recklessly

 

acted in such a manner as to cause a danger of death or serious

 

bodily injury and that either of the following occurred:

 

     (a) The defendant had an actual awareness, belief, or

 

understanding that his or her conduct would cause a substantial

 

danger of death or serious bodily injury.

 

     (b) The defendant acted in gross disregard of the standard of

 

care that any reasonable person should observe in similar

 

circumstances.

 

     (6) Knowledge possessed by a person other than the defendant

 

under subsection (5) may be attributable to the defendant if the

 

defendant took affirmative steps to shield himself or herself from

 

the relevant information.

 

     (7) The attorney general may file a civil suit in a court of

 

competent jurisdiction to recover the full value of the injuries

 

done to the natural resources of the state and the costs of

 

surveillance and enforcement by the state resulting from a

 

violation of this part or a permit or order issued or rule

 

promulgated under this part.

 

     (8)  (7) A  All of the following apply to a civil fine or

 

other award ordered paid pursuant to this section:  shall do both


 

of the following:

 

     (a)  Be  It is payable to the state of Michigan and shall be

 

credited as follows:

 

     (i) If the violation was related to a discharge from a CAFO, to

 

the CAFO cleanup and enforcement fund created under section 8637.

 

As used in this subparagraph, "CAFO" means that term as defined in

 

section 8601.

 

     (ii) For violations other than those described in subparagraph

 

(i), to the general fund.

 

     (b)  Constitute  It constitutes a lien on any property  , of

 

any nature or kind,  owned by the defendant.

 

     (8) A lien under subsection (7)(b) shall take The lien takes

 

effect and  have  has priority over all other liens and

 

encumbrances except those filed or recorded prior to the date of

 

judgment, but only if notice of the lien is filed or recorded as

 

required by state or federal law.

 

     (9) A lien  If notice of the lien is filed or recorded,  

 

pursuant to subsection (8)  the lien shall be terminated according

 

to the procedures required by state or federal law within 14 days

 

after the fine or other award ordered to be paid is paid.

 

     (10) In addition to any other method of collection, any fine

 

or other award ordered paid

 

     (c) It may be recovered by right of setoff to any debt owed to

 

the defendant by  the  this state,  of Michigan,  including the

 

right to a refund of income taxes paid.

 

     Sec. 3120. (1)  Until October 1, 2009, an  An application for

 

a new permit, a reissuance of a permit, or a modification of an


 

existing permit under this part authorizing a discharge into

 

surface water, other than a storm water discharge, shall be

 

accompanied by an application fee as follows:

 

     (a) For an EPA major facility permit, $750.00.

 

     (b) For an EPA minor facility individual permit, a CSO permit,

 

or a wastewater stabilization lagoon individual permit, $400.00.

 

     (c) For an EPA minor facility general permit, $75.00.

 

     (2) Within 180 days after receipt of a complete application

 

for a new or increased use permit, the department shall either

 

grant or deny the permit, unless the applicant and the department

 

agree to extend this time period.

 

     (3) By September 30 of the year following the submittal of a

 

complete application for reissuance of a permit, the department

 

shall either grant or deny the permit, unless the applicant and the

 

department agree to extend this time period.

 

     (4) If the department fails to make a decision on an

 

application within the applicable time period under subsection (2)

 

or (3), the department shall return to the applicant the

 

application fee submitted under subsection (1) and the applicant

 

shall not be subject to an application fee and shall receive a 15%

 

annual discount on an annual permit fee required for a permit

 

issued based upon that application.

 

     (5)  Until October 1, 2009, a  A person who receives a permit

 

under this part authorizing a discharge into surface water, other

 

than a stormwater discharge, is subject to an annual permit fee as

 

follows:

 

     (a) For an industrial or commercial facility that is an EPA


 

major facility, $8,700.00.

 

     (b) For an industrial or commercial facility that is an EPA

 

minor facility, the following amounts:

 

     (i) For a general permit for a low-flow facility, $150.00.

 

     (ii) For a general permit for a high-flow facility, $400.00.

 

     (iii) For an individual permit for a low-flow facility,

 

$1,650.00.

 

     (iv) For an individual permit for a high-flow facility,

 

$3,650.00.

 

     (c) For a municipal facility that is an EPA major facility,

 

the following amounts:

 

     (i) For an individual permit for a facility discharging 500 MGD

 

or more, $213,000.00.

 

     (ii) For an individual permit for a facility discharging 50 MGD

 

or more but less than 500 MGD, $20,000.00.

 

     (iii) For an individual permit for a facility discharging 10 MGD

 

or more but less than 50 MGD, $13,000.00.

 

     (iv) For an individual permit for a facility discharging less

 

than 10 MGD, $5,500.00.

 

     (d) For a municipal facility that is an EPA minor facility,

 

the following amounts:

 

     (i) For an individual permit for a facility discharging 10 MGD

 

or more, $3,775.00.

 

     (ii) For an individual permit for a facility discharging 1 MGD

 

or more but less than 10 MGD, $3,000.00.

 

     (iii) For an individual permit for a facility discharging less

 

than 1 MGD, $1,950.00.


 

     (iv) For a general permit for a high-flow facility, $600.00.

 

     (v) For a general permit for a low-flow facility, $400.00.

 

     (e) For a municipal facility that is a CSO facility,

 

$6,000.00.

 

     (f) For an individual permit for a wastewater stabilization

 

lagoon, $1,525.00.

 

     (g) For an individual or general permit for an agricultural

 

purpose, $600.00, unless either of the following applies:

 

     (i) The facility is an EPA minor facility and would qualify for

 

a general permit for a low-flow facility, in which case the fee

 

would be  is $150.00.

 

     (ii) The facility is an EPA major facility that is not a

 

farmers' cooperative corporation, in which case the fee  would be  

 

is $8,700.00.

 

     (h) Notwithstanding any other provision of this subsection,

 

for an individual permit for a CAFO, the following fee, as

 

applicable:

 

     (i) For a large CAFO, $5,500.00.

 

     (ii) For a medium CAFO, $1,600.00.

 

     (iii) For a small CAFO, $600.00.

 

     (i)  (h)  For a facility that holds a permit issued under this

 

part but has no discharge to waters of the state and  the facility  

 

is connected to and  is  authorized to discharge only to a

 

municipal wastewater treatment system, an annual permit maintenance

 

fee of $100.00. However, if a facility does have a discharge or at

 

some point is no longer connected to a municipal wastewater

 

treatment system, the annual permit fee shall be the appropriate


 

fee as otherwise provided in this subsection.

 

     (6) If the person required to pay an application fee under

 

subsection (1) or an annual permit fee under subsection (5) is a

 

municipality, the municipality may pass on the application fee or

 

the annual permit fee, or both, to each user of the municipal

 

facility.

 

     (7) The department shall send invoices for annual permit fees

 

under subsection (5) to all permit holders by December 1 of each

 

year. The fee shall be based on the status of the facility as of

 

October 1 of that year. A person subject to an annual permit fee

 

shall pay the fee not later than January 15 of each year. Failure

 

by the department to send an invoice by the deadline, or failure of

 

a person to receive an invoice that was sent by the deadline, does

 

not relieve that person of his or her obligation to pay the annual

 

permit fee. If the department does not meet the December 1 deadline

 

for sending invoices, the annual permit fee is due not later than

 

45 days after receiving an invoice. The department shall forward

 

annual permit fees received under this section to the state

 

treasurer for deposit as follows:

 

     (a) All fees other than fees for CAFOs shall be deposited into

 

the national pollutant discharge elimination system fund created in

 

section 3121.

 

     (b) Fees for CAFOs shall be deposited into the CAFO cleanup

 

and enforcement fund created under section 8637.

 

     (8) The department shall assess a penalty on all annual permit

 

fee payments submitted under this section after the due date. The

 

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


 

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

 

     (9) Following payment of an annual permit fee, if a permittee

 

wishes to challenge its annual permit fee under this section, the

 

owner or operator shall submit the challenge in writing to the

 

department. The department shall not process the challenge unless

 

it is received by the department by March 1 of the year the payment

 

is due. A challenge shall identify the facility and state the

 

grounds upon which the challenge is based. Within 30 calendar days

 

after receipt of the challenge, the department shall determine the

 

validity of the challenge and provide the permittee with

 

notification of a revised annual permit fee and a refund, if

 

appropriate, or a statement setting forth the reason or reasons why

 

the annual permit fee was not revised. If the owner or operator of

 

a facility desires to further challenge its annual permit fee, the

 

owner or operator of the facility has an opportunity for a

 

contested case hearing as provided for under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (10) The attorney general may bring an action for the

 

collection of the annual permit fee imposed under this section.

 

     (11) Within 30 days after the effective date of the amendatory

 

act that added this section, the director of the department shall

 

notify each person holding a permit under this part authorizing a

 

discharge into surface water, other than a storm water permit, of

 

the requirements of this section.  

 

     (11)  (12)  As used in this section:

 

     (a) "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.

 

     (b) "CAFO" means that term as defined in section 8601.

 

     (c)  (b)  "Combined sewer overflow" or "CSO" means a discharge

 

from a combined sewer system that occurs when the flow capacity of

 

the combined sewer system is exceeded at a point prior to the

 

headworks of a publicly owned treatment works during wet weather

 

conditions.

 

     (d)  (c)  "Combined sewer system" means a sewer designed and

 

used to convey both storm water runoff and sanitary sewage, and

 

which contains lawfully installed regulators and control devices

 

that allow for delivery of sanitary flow to treatment during dry

 

weather periods and divert storm water and sanitary sewage to

 

surface waters during storm flow periods.

 

     (e)  (d)  "CSO facility" means a facility whose discharge is

 

solely a combined sewer overflow.

 

     (f)  (e)  "EPA major facility" means a facility that is

 

designated by the United States environmental protection agency as

 

being a major facility under 40  C.F.R.  CFR 122.2.


 

     (g)  (f)  "EPA minor facility" means a facility that is not an

 

EPA major facility.

 

     (h)  (g)  "Farmers' cooperative corporation" means a farmers'

 

cooperative corporation organized within the limitations of section

 

98 of the Michigan general corporation act, 1931 PA 327, MCL

 

450.98.

 

     (i)  (h)  "General permit" means a permit suitable for use at

 

facilities meeting eligibility criteria as specified in the permit.

 

With a general permit, the discharge from a specific facility is

 

acknowledged through a certificate of coverage issued to the

 

facility.

 

     (j)  (i)  "High-flow facility" means a facility that

 

discharges 1 MGD or more.

 

     (k)  (j)  "Individual permit" means a permit developed for a

 

particular facility, taking into account that facility's specific

 

characteristics.

 

     (l)  (k)  "Industrial or commercial facility" means a facility

 

that is not a municipal facility.

 

     (m) "Large CAFO" means that term as defined in section 8603.

 

     (n)  (l)  "Low-flow facility" means a facility that discharges

 

less than 1 MGD.

 

     (o) "Medium CAFO" means that term as defined in section 8603.

 

     (p)  (m)  "MGD" means 1,000,000 gallons per day.

 

     (q)  (n)  "Municipal facility" means a facility that is

 

designed to collect or treat sanitary wastewater, and is either

 

publicly or privately owned, and serves a residential area or a

 

group of municipalities.


 

     (r) "Small CAFO" means that term as defined in section 8605.

 

     (s)  (o)  "Wastewater stabilization lagoon" means a type of

 

treatment system constructed of ponds or basins designed to

 

receive, hold, and treat sanitary wastewater for a predetermined

 

amount of time. Wastewater is treated through a combination of

 

physical, biological, and chemical processes.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 93rd Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5801(request no.

 

01066'05).

 

     (b) Senate Bill No.____ or House Bill No. 5803(request no.

 

01074'05).

 

     (c) Senate Bill No.____ or House Bill No. 5809(request no.

 

01081'05).

 

     (d) Senate Bill No.____ or House Bill No. 5807(request no.

 

02008'05).

 

     (e) Senate Bill No.____ or House Bill No. 5808(request no.

 

02009'05).

 

     (f) Senate Bill No.____ or House Bill No. 5806(request no.

 

02010'05).

 

     (g) Senate Bill No.____ or House Bill No. 5804(request no.

 

02011'05).

 

     (h) Senate Bill No.____ or House Bill No. 5805(request no.

 

02032'05).