September 8, 2010, Introduced by Rep. Griffin and referred to the Committee on New Economy and Quality of Life.
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 section 5204c, the department may
expend, upon appropriation, not more than $140,000,000.00 of the
money from the fund for response activities to address nonpoint
source water pollution at facilities as follows:
(a) For the state fiscal year ending September 30, 2011, not
more than $50,000,000.00 may be authorized for expenditure under
this section.
(b) For the state fiscal year ending September 30, 2012, not
more than $50,000,000.00 may be authorized for expenditure under
this section.
(c) Beginning October 1, 2012, any money not previously
authorized for expenditure under this section may be expended under
this section only 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.
(iv) Demonstrating progress toward maximizing risk reduction
and economic development objectives identified for projects funded
under this section.
(2) The department shall expend money under this section in
compliance with all of the following:
(a) The expenditure is used to improve the quality of the
waters of the state.
(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 include property that is 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) The expenditure is used for response activities necessary
to address existing or imminent unacceptable risks arising from
conditions that contribute to nonpoint source water pollution,
including expenses for project management activities within the
department.
(3) In using funds to address nonpoint source water pollution
projects under this section, the department shall select projects
that, to the extent practicable, provide maximum benefit to the
state in protecting public health and the environment and
contributing to economic development.
(4) 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.
(5) 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
and includes an evaluation of how the expenditures, to the extent
practicable, provide maximum benefit to the state in protecting
public health and the environment and contributing to economic
development. For each project funded under this section, the report
shall include all of the following:
(a) How the project met the criteria described in this
section.
(b) The extent to which the project improved water quality or
prevented a risk to water quality as measured by the number of
individuals who benefit from the project.
(c) The extent to which the project preserved infrastructure
investments that protect public health or prevented risks to water
quality as measured by the risk posed or the public health
protected.
(d) The extent to which the project enhanced economic
development as measured by such factors including, but not limited
to, all of the following:
(i) A net increase to the value of the properties in the
vicinity of the project.
(ii) The creation of jobs.
(iii) The extent to which the project contributed to leveraging
private investment in the vicinity of the project.
(e) 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.
(6) The legislature finds that use of the fund for response
activities to address nonpoint source water pollution at facilities
is appropriate and necessary at this time. It is the intent of this
legislature that money from the fund shall not be utilized for
response activities to address nonpoint source water pollution at
facilities when the $150,000,000.00 has been expended under this
section and section 5204c.
(7) As used in this section, "facility", "release", and
"response activity" mean those terms as they are defined in part
201.
Sec. 5204c. (1) The department may expend $10,000,000.00 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, $5,000,000.00 shall be used for grants
and $5,000,000.00 shall be used for loans. However, on September
30, 2014, if any money described in this section has not been
appropriated for the purposes of this section, that money may be
used for the purposes of section 5204b.
(2) The department shall develop grant and loan application
materials to implement this section and shall accept applications
at any time throughout the year.
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
$750,000,000.00 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
$250,000,000.00 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) Senate Bill No. 1443.
(e) House Bill No. 6359.
(f) House Bill No. 6360.
(g) House Bill No. 6363.