CLEAN CORPORATE CITIZEN PROGRAM                                               S.B. 939 (S-2)-942:

                                                                                                      FLOOR SUMMARY

Senate Bill 939 (Substitute S-2 as reported by the Committee of the Whole)

Senate Bill 940 (Substitute S-1 as reported by the Committee of the Whole)

Senate Bills 941 and 942 (as reported without amendment)

Sponsor:  Senator Arlan Meekhof (S.B. 939)

               Senator Tom Casperson (S.B. 940)

               Senator John Proos (S.B. 941)

               Senator Mike Green (S.B. 942)

Committee:  Natural Resources, Environment and Great Lakes

CONTENT

Senate Bill 939 (S-2) would add Part 14 (Clean Corporate Citizens) to the Natural Resources and Environmental Protection Act (NREPA) to provide for a "clean corporate citizen" ("C3") designation that an establishment could receive from the Department of Environmental Quality (DEQ).  Specifically, the bill would do the following:

-- Prescribe criteria that a facility would have to meet to receive the designation, including requirements to implement an environmental management system and adopt an environmental policy.

-- Disqualify a facility from receiving a C3 designation if the DEQ determined that the facility was responsible for a pattern of illegal actions that endangered the public health, safety, or welfare or the environment within the previous three years.

-- Require a C3 to submit an annual report on compliance activities.

-- Prescribe benefits that a C3 would be entitled to upon request, including reduced permit processing times, doubled permit duration, less frequent inspections, a preference in State purchasing, and free employee training on performing environmental audits.

-- Provide that a designation would be for five years but would have to be terminated if the facility did not meet applicable requirements.

Senate Bill 940 (S-1) would amend the Management and Budget Act to include facilities operated by designated C3s among the entities given a preference in State purchasing decisions.

Senate Bills 941 and 942 would amend the Public Health Code and the Safe Drinking Water Act, respectively, to provide that Parts 135 (Radiation Control) and 138 (Medical Waste) of the Health Code and the Safe Drinking Water Act would be subject to proposed Part 14 of NREPA.

Senate Bills 940 (S-1), 941, and 942 are tie-barred to Senate Bill 939.

Proposed MCL 324.1401-324.1429 (S.B. 939)                     Legislative Analyst:  Julie Cassidy

MCL 18.1261 (S.B. 940)

Proposed MCL 333.13537 & 333.13832 (S.B. 941)

MCL 325.1023 (S.B. 942)

FISCAL IMPACT

Senate Bills 939 (S-2), 941, and 942 would have an indeterminate fiscal impact on State finances, and no fiscal impact on local units of government.  The bills would introduce some costs associated with the requirement that the DEQ provide free training to Clean Corporate Citizens in performing environmental audits under Part 148 of NREPA. 

The bills also would reduce the costs of operating the various permit programs covered under the Clean Corporate Citizen program by some amount, by making routine inspections of regulated facilities less frequent.  It is unknown at this time whether these savings would offset the costs of providing free training, so the fiscal impact is indeterminate.

Senate Bill 940 (S-1) would have no fiscal impact on State or local government.

Date Completed:  5-14-12                                                    Fiscal Analyst:  Joe Carrasco

Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.