SB-0939, As Passed House, December 6, 2012

SUBSTITUTE FOR

SENATE BILL NO. 939

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

(MCL 324.101 to 324.90106) by adding part 14.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

                   PART 14 CLEAN CORPORATE CITIZENS

     Sec. 1401. As used in this part:

     (a) "Applicable environmental requirement" means an applicable

federal environmental requirement, an applicable state

environmental requirement, or an environmental requirement

established by a local unit of government.

     (b) "Applicable federal environmental requirement" means any

of the following:

     (i) The federal water pollution control act, 33 USC 1251 to

1387.

     (ii) The clean air act, 42 USC 7401 to 7671q.

     (iii) The resource conservation and recovery act of 1976, 42 USC

6901 to 6992k.

     (iv) The comprehensive environmental response, compensation,

and liability act of 1980, 42 USC 9601 to 9675.

     (c) "Applicable state environmental requirement" means any of

the following or a rule promulgated or permit, order, or other

legally binding document issued under any of the following:

     (i) Article II or chapter 1 or 3 of article III.

     (ii) The safe drinking water act, 1976 PA 399, MCL 325.1001 to

325.1023.

     (iii) Part 135 or 138 of the public health code, 1978 PA 368,

MCL 333.13501 to 333.13536 and 333.13801 to 333.13831.

     (d) "Certified", in reference to a statement, means that the

statement includes an attestation signed by an authorized official

of the facility that he or she has made reasonable inquiry into the

basis for the statement and that it is true and correct to the best

of the official's knowledge and belief.

     (e) "Clean corporate citizen" means a facility that has

demonstrated environmental stewardship and a strong environmental

ethic by meeting the criteria in this part.

     (f) "Department" means the department of environmental

quality.

     (g) "Director" means the director of the department or his or

her designee.

     (h) "Environmental management system" means the part of an

overall management system that addresses environmental concerns

through allocating resources, assigning responsibilities, and

evaluating practices, procedures, and processes to achieve sound

environmental performance.

     (i) "Environmental policy" means a policy, signed by an

authorized official of the facility, that does all of the

following:

     (i) Articulates the facility's environmental mission and

values.

     (ii) Promotes pollution prevention.

     (iii) Acknowledges the importance of communication with the

public with respect to environmental issues.

     (iv) Expresses the facility's commitment to comply with

environmental laws.

     (v) Emphasizes continuous environmental improvement.

     (vi) Recognizes that every employee can contribute to

environmental improvement.

     (j) "Facility" means any of the following that is situated in

this state and is subject to an applicable state environmental

requirement or applicable federal environmental requirement:

     (i) A source as defined in section 5501.

     (ii) A public institution.

     (iii) A municipal facility.

     (iv) A commercial, industrial, or other business establishment.

     Sec. 1403. As used in this part:

     (a) "ISO 14001:2004" means the standard adopted by the

international organization for standardization in 2004 to prescribe

uniform requirements for the purpose of certification or

registration of an environmental management system.

     (b) "Pollution prevention" means eliminating or minimizing the

initial generation of waste at the source, reuse of waste, or

utilizing environmentally sound on-site or off-site recycling.

Waste treatment, release, or disposal is not pollution prevention.

     (c) "RC 2008" means the responsible care program adopted by

the American chemistry council in 2008 to provide uniform

requirements for the purpose of certification or registration of an

environmental management system.

     (d) "Supplemental environmental project" means an

environmentally beneficial project that an alleged violator agrees

to undertake in settlement of an enforcement action, but which the

alleged violator is not otherwise legally required to undertake.

     (e) "Violation notice" means a written notice or formal

enforcement action by the department, the United States

environmental protection agency, or the enforcing agency of a local

unit of government in response to a violation of an applicable

environmental requirement. A voluntary disclosure made under part

148 does not constitute a violation notice.

     (f) "Waste" means any environmental pollutant, waste,

discharge, or emission, regardless of how it is regulated and

regardless of whether it is released to the general environment or

the workplace environment.

     Sec. 1405. To obtain a clean corporate citizen designation and

the benefits described in section 1421, a facility shall meet the

qualifications set forth in sections 1407 to 1411 and submit an

application under section 1413.

     Sec. 1407. (1) To qualify for a clean corporate citizen

designation, a facility shall not have been the subject of any of

the following at any time within the preceding 3 years:

     (a) A conviction for a criminal violation of an applicable

state environmental requirement.

     (b) An assessment by a court of appropriate jurisdiction, of a

civil fine, penalty, or damages of $10,000.00 or more for violation

of an applicable state environmental requirement.

     (c) A determination, by a court of appropriate jurisdiction,

of responsibility for an illegal action that substantially

endangered the public health, safety, or welfare or the

environment.

     (d) A departmental assessment, a judicial consent decree, or

an administrative consent order, imposing a fine or damages of

$32,500.00 or more, excluding the cost of any supplemental

environmental project used to offset a fine, for a violation of an

applicable state environmental requirement.

     (2) A facility does not qualify for a clean corporate citizen

designation if the department determines that the facility was

responsible for a pattern of illegal actions, at any time within

the preceding 3 years, that endangered the public health, safety,

or welfare or the environment.

     (3) To qualify for a clean corporate citizen designation, an

facility shall address any outstanding violation that is cited in a

violation notice that, as determined by the department,

substantially endangers the public health, safety, or welfare or

the environment, by doing 1 or more of the following:

     (a) Promptly resolving the violation.

     (b) Demonstrating to the department, the United States

environmental protection agency, or the local enforcing agency that

issued the violation notice that the violation did not occur.

     (c) Adhering to a compliance schedule that is acceptable to

the department, the United States environmental protection agency,

or the local enforcing agency that issued the violation notice, to

correct the violation.

     Sec. 1409. To qualify for a clean corporate citizen

designation, a facility shall meet 1 of the following requirements:

     (a) Obtain and operate in accordance with requirements for

registration or certification under an environmental management

standard, such as ISO 14001:2004, or, for the chemical industry, RC

2008, that is approved by the director.

     (b) Adopt and maintain an environmental management system that

is set forth in writing and is consistent with the requirements of

ISO 14001:2004, or, for the chemical industry, RC 2008, and

appropriate for the nature, scale, and potential environmental

impact of the operation at the facility.

     (c) Adopt and maintain an environmental management system that

is set forth in writing, approved by the director, and applicable

to a specific group or classification of facilities including that

facility. The environmental management system shall be consistent

with the requirements of ISO 14001:2004, or, for the chemical

industry, RC 2008, and be appropriate for the nature, scale, and

potential environmental impact of the operation.

     (d) For a facility with 100 or fewer employees, adopt and

maintain the following elements of an environmental management

system, which shall be set forth in writing:

     (i) An environmental policy.

     (ii) The environmental aspects.

     (iii) The objectives and targets of operations.

     (iv) The roles and responsibilities.

     (v) The procedures for internal and external communication.

     Sec. 1411. (1) To qualify for a clean corporate citizen

designation, a facility shall do all of the following:

     (a) Adopt and maintain a written environmental policy.

     (b) Establish and maintain a program specific for that

facility under which the operator does all of the following:

     (i) Posts at the facility the environmental policy required in

subdivision (a).

     (ii) Conducts periodic assessments that identify opportunities

for pollution prevention.

     (iii) Establishes goals for reducing or preventing pollution,

indicating the types of pollution; whether each pollutant would

affect the air, water, or land; the pollution prevention measures

to be undertaken; and the projected time frames.

     (iv) Prepares and maintains reports to demonstrate progress

toward attaining the goals established under subparagraph (iii).

     (2) Facilities are encouraged, as part of the program under

subsection (1)(b), to do all of the following:

     (a) Initiate community-based activities.

     (b) Provide for the exchange of information concerning

pollution prevention activities, such as the following:

     (i) Attend or sponsor workshops.

     (ii) Assist in developing and disseminating case studies.

     (iii) Establish pollution prevention supplier networks.

     (iv) Provide the department with pollution prevention

information for possible publication.

     (v) Provide the department with access to electronic copies of

the facility's emergency response plan, pollution incident plan,

stormwater pollution prevention plan, and other plans as

appropriate.

     Sec. 1413. (1) To obtain a clean corporate citizen

designation, a facility shall submit an application to the

department. The application shall be submitted on a form provided

by the department, together with all of the following:

     (a) A list of any criminal convictions or any civil fines,

penalties, or damages assessed relative to applicable federal

environmental requirements arising out of operations at the

facility during the past 3 years.

     (b) A certified statement that the applicant meets the

requirements of sections 1407, 1409, and 1411.

     (c) Information demonstrating the applicant's compliance with

section 1409, including a detailed summary of each required element

of an environmental management system.

     (d) Information demonstrating the applicant's compliance with

section 1411, including a copy of the applicant's environmental

policy.

     (e) A list of significant goals established in the

environmental management system and the environmental policy.

     (f) If the facility is already designated as a clean corporate

citizen with respect to that facilty when the application is filed,

the latest annual report required under section 1419.

     (2) The department shall determine whether the application is

administratively complete within 14 days after receipt of the

application.

     (3) If the application is administratively complete, the

department shall publish in the department calendar and post on its

website a notice of receipt of the application and related

documentation and of the availability of the application and

related documentation for public review and comment. The notice

shall include the department's electronic mail and postal mailing

addresses for receipt of comments. Comments shall be received for a

period of at least 30 days after notice is given under this

subsection.

     (4) Within 90 days after receipt of an administratively

complete application for a clean corporate citizen designation,

unless an extension of time is requested by the applicant, the

director shall approve or disapprove the application and notify the

applicant. The director shall approve the application if the

application meets the requirements of this part. Otherwise, the

director shall disapprove the application. A notification of

disapproval shall include the specific reasons for the disapproval.

     (5) If the application is disapproved, the unsuccessful

applicant may reapply for a clean corporate citizen designation at

any time. In addition, an applicant may withdraw an application

without prejudice at any time.

     (6) If a document otherwise required to be submitted to the

department with an application under this section or an annual

report under section 1419 is already in the possession of the

department, the application or annual report may incorporate the

document by reference without including a copy of the document.

     Sec. 1415. The term of a clean corporate citizen designation

is 5 years.

     Sec. 1417. (1) The director shall terminate a clean corporate

citizen designation if the director determines that the facility

does not meet applicable requirements of section 1407, 1409, or

1411.

     (2) The director shall notify a facility of the director's

intent to terminate the facility's clean corporate citizen

designation and the specific reason for the termination not less

than 30 days before terminating the designation.

     (3) A facility whose designation is terminated may reapply for

a clean corporate citizen designation at any time.

     Sec. 1419. A clean corporate citizen shall submit an annual

report not later than 60 days before the annual anniversary date of

the current clean corporate citizen designation. The annual report

shall do all of the following:

     (a) Summarize the activities undertaken over the past year to

do the following:

     (i) Identify and report on implementation of standardized

pollution prevention measures consistent with the program

established under section 1411, on a form provided by the

department.

     (ii) Set, revise, and attain objectives and implement measures

in the clean corporate citizen's environmental management system

and pollution prevention programs.

     (b) Include a certified statement that the clean corporate

citizen is in compliance with sections 1407, 1409, and 1411.

     Sec. 1421. (1) Upon request, a clean corporate citizen is

entitled to each of the following benefits:

     (a) The department shall give the facility priority over

persons that are not clean corporate citizens in all of the

following:

     (i) Compliance assistance programs applicable to the facility,

such as the retired engineers technical assistance program created

in section 14511.

     (ii) Processing permit or operating license renewal

applications for the facility.

     (b) The department shall provide employees of the facility

with free training on performing environmental audits under part

148.

     (c) The term of a permit issued by the department for the

facility shall be twice the term that would otherwise apply.

     (d) The facility shall receive a preference for state

purchases as provided in section 261 of the management and budget

act, 1984 PA 431, MCL 18.1261.

     (e) The facility qualifies for any additional clean corporate

citizen benefits for the facilty set forth in rules promulgated

under any of the following:

     (i) Article II or chapter 1 or 3 of article III.

     (ii) The safe drinking water act, 1976 PA 399, MCL 325.1001 to

325.1023.

     (iii) Part 135 or 138 of the public health code, 1978 PA 368,

MCL 333.13501 to 333.13536 and 333.13801 to 333.13831.

     (f) The department shall conduct routine inspections of the

facilty half as frequently as the inspections would be conducted if

the facility were not a clean corporate citizen.

     (g) The department shall give the operator of the facility at

least 72 hours' advance notice of any routine inspection of the

facility.

     (h) Subject to subsection (2), the facility is not subject to

a civil fine for a violation of applicable state environmental

requirements if all of the following conditions are met:

     (i) The facility acted promptly to correct the violation after

discovery.

     (ii) The facility reported the violation to the department

within 24 hours after the discovery or within any shorter time

period otherwise required by law.

     (2) Subsection (1)(h) does not apply if 1 or more of the

following are established by clear and convincing evidence:

     (a) The actions of the facility pose or posed a substantial

endangerment to the public health, safety, or welfare.

     (b) The violation was intentional or occurred as the result of

the operator's gross negligence.

     Sec. 1423. Upon termination of a clean corporate citizen

designation, all benefits provided to that facility under section

1421 terminate.

Senate Bill No. 939 as amended May 15, 2012

                    as amended December 4, 2012

     Sec. 1425. (1) The department shall maintain a copy of ISO

14001:2004 and RC 2008 available for inspection at the department's

headquarters in Lansing. Upon request, the department shall provide

information on how to purchase a copy of ISO 14001:2004 from the

American national standards institute and RC 2008 from the American

chemistry council.

     (2) The department shall maintain on its website a list of

facilities currently designated as clean corporate citizens.

     Sec. 1427. This part shall not be construed in a manner that

conflicts with or authorizes any violation of state [LAW] or federal

[regulation or] law.

<<Sec. 1429. The clean corporate citizen program rules,

R 324.1501 to 324.1511 of the Michigan administrative code, are rescinded.>>