SENATE BILL NO. 608
October 24, 2023, Introduced by Senators GEISS, IRWIN, SHINK, MCMORROW, MOSS,
BAYER, POLEHANKI, SANTANA and CHANG and referred to the Committee on Energy
and Environment.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 3101, 3103, and 3115 (MCL 324.3101, 324.3103,
and 324.3115), section 3101 as amended by 2015 PA 247, section 3103
as amended by 2005 PA 33, and section 3115 as amended by 2004 PA
143, and by adding section 3106c.
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
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1 that threatens the diversity or abundance of native species or the
2 ecological stability of infested waters, or commercial,
3 agricultural, aquacultural, or recreational activities dependent on
4 such waters.
5 (b) "Ballast water" means water and associated solids taken on
6 board a vessel to control or maintain trim, draft, stability, or
7 stresses on the vessel, without regard to the manner in which it is
8 carried.
9 (c) "Ballast water treatment method" means a method of
10 treating ballast water and sediments to remove or destroy living
11 biological organisms through 1 or more of the following:
12 (i) Filtration.
13 (ii) The application of biocides or ultraviolet light.
14 (iii) Thermal methods.
15 (iv) Other treatment techniques approved by the department.
16 (d) "Bond" means a financial instrument guaranteeing
17 performance, including a surety bond from a surety company
18 authorized to transact business in this state, a certificate of
19 deposit, a cash bond, an irrevocable letter of credit, an insurance
20 policy, or a combination of any of these instruments in favor of
21 the department.
22 (e) "Certificate of deposit" means a negotiable certificate of
23 deposit that meets all of the following requirements:
24 (i) Is negotiable.
25 (ii) Is held by a bank or other financial institution regulated
26 and examined by a state or federal agency.
27 (iii) Is fully insured by an agency of the United States
28 government.
29 (iv) Is in the sole name of the department.
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1 (v) Has a maturity date of not less than 1 year.
2 (vi) Is renewed not later than 60 days before the maturity
3 date.
4 (f) (d) "Department" means the department of environmental
5 quality.environment, Great Lakes, and energy.
6 (g) (e) "Detroit consumer price index" Consumer Price Index"
7 means the most comprehensive index of consumer prices available for
8 the Detroit area from the United States Department of Labor, Bureau
9 of Labor Statistics.
10 (h) (f) "Emergency management coordinator" means that term as
11 defined in section 2 of the emergency management act, 1976 PA 390,
12 MCL 30.402.
13 (i) "Escrow account" means an account that is managed by a
14 bank or other financial institution whose account operations are
15 regulated and examined by a federal or state agency and that
16 complies with section 11523b.
17 (j) (g) "Great Lakes" means the Great Lakes and their
18 connecting waters, including Lake St. Clair.
19 (k) (h) "Group 1 facility" means a facility whose discharge is
20 described by R 323.2218 of the Michigan administrative
21 code.Administrative Code.
22 (l) (i) "Group 2 facility" means a facility whose discharge is
23 described by R 323.2210(y), R 323.2215, or R 323.2216 of the
24 Michigan administrative code. Administrative Code. Group 2 facility
25 does not include a Group 2a facility.
26 (m) (j) "Group 2a facility" means a facility whose discharge
27 is described by R 323.2210(y) or R 323.2215 of the Michigan
28 administrative code Administrative Code and that meets 1 or more of
29 the following:
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1 (i) The facility's discharge is from a coin-operated
2 laundromat.
3 (ii) The facility's discharge is from a car wash or vehicle
4 wash open to the public.
5 (iii) The facility's discharge is a subsurface sanitary
6 discharge of fewer than 10,000 gallons per day that does not meet
7 the terms for authorization under R 323.2211(a) of the Michigan
8 administrative code.Administrative Code.
9 (iv) The facility's discharge is a seasonal sanitary discharge
10 from a public park, public or private recreational vehicle park or
11 campground, or recreational or vacation camp.
12 (n) (k) "Group 3 facility" means a facility whose discharge is
13 described by R 323.2211 or R 323.2213 of the Michigan
14 administrative code.Administrative Code.
15 (o) "Insurance policy" means an insurance policy that conforms
16 to the requirements of 40 CFR 258.74(d) and is provided by an
17 insurer that has a certificate of authority from the director of
18 insurance and financial services to sell this line of coverage. An
19 applicant for an operating license or general permit shall submit
20 evidence of the required coverage by submitting both of the
21 following to the department:
22 (i) A certificate of insurance that uses wording approved by
23 the department.
24 (ii) A certified true and complete copy of the insurance
25 policy.
26 (p) (l) "Local health department" means that term as defined
27 in section 1105 of the public health code, 1978 PA 368, MCL
28 333.1105.
29 (q) (m) "Local unit" means a county, city, village, or
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1 township or an agency or instrumentality of any of these entities.
2 (r) (n) "Municipality" means this state, a county, city,
3 village, or township, or an agency or instrumentality of any of
4 these entities.
5 (s) (o) "National response center" means the National
6 Communications Center established under the clean water act, 33 USC
7 1251 to 1387, located in Washington, DC, that receives and relays
8 notice of oil discharge or releases of hazardous substances to
9 appropriate federal officials.
10 (t) (p) "Nonoceangoing vessel" means a vessel that is not an
11 oceangoing vessel.
12 (u) (q) "Oceangoing vessel" means a vessel that operates on
13 the Great Lakes or the St. Lawrence waterway after operating in
14 waters outside of the Great Lakes or the St. Lawrence waterway.
15 (v) (r) "Open water disposal of contaminated dredge materials"
16 means the placement of dredge materials contaminated with toxic
17 substances as defined in R 323.1205 of the Michigan administrative
18 code into the open waters of the waters of the state but does not
19 include the siting or use of a confined disposal facility
20 designated by the United States Army Corps of Engineers or beach
21 nourishment activities utilizing uncontaminated materials.
22 (w) (s) "Primary public safety answering point" means that
23 term as defined in section 102 of the emergency telephone service
24 enabling act, 1986 PA 32, MCL 484.1102.
25 (x) "Response activity costs" means that term as defined in
26 section 20101.
27 (y) (t) "Sediments" means any matter settled out of ballast
28 water within a vessel.
29 (z) (u) "Sewage sludge" means sewage sludge generated in the
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1 treatment of domestic sewage, other than only septage or industrial
2 waste.
3 (aa) (v) "Sewage sludge derivative" means a product for land
4 application derived from sewage sludge that does not include solid
5 waste or other waste regulated under this act.
6 (w) "Sewage sludge generator" means a person who generates
7 sewage sludge that is applied to land.
8 (bb) (x) "Sewage sludge distributor" means a person who
9 applies, markets, or distributes, except at retail, a sewage sludge
10 derivative.
11 (cc) "Sewage sludge generator" means a person who generates
12 sewage sludge that is applied to land.
13 (dd) (y) "St. Lawrence waterway" means the St. Lawrence River,
14 the St. Lawrence Seaway, and the Gulf of St. Lawrence.
15 (ee) (z) "Threshold reporting quantity" means that term as
16 defined in R 324.2002 of the Michigan administrative
17 code.Administrative Code.
18 (ff) (aa) "Waters of the state" means groundwaters, lakes,
19 rivers, and streams and all other watercourses and waters,
20 including the Great Lakes, within the jurisdiction of this state.
21 Sec. 3103. (1) The department shall protect and conserve the
22 water resources of the state and shall have control of the
23 pollution of surface or underground waters of the state and the
24 Great Lakes , which that are or may be affected by waste disposal
25 of any person. The department may make or cause to be made surveys,
26 studies, and investigations of the uses of waters of the state,
27 both surface and underground, and may cooperate with other
28 governments and governmental units and agencies in making the
29 surveys, studies, and investigations. The department shall assist
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1 in an advisory capacity a flood control district that may be
2 authorized by the legislature. The department, in the public
3 interest, shall appear and present evidence, reports, and other
4 testimony during the hearings involving the creation and
5 organization of flood control districts. The department shall
6 advise and consult with the legislature on the obligation of the
7 this state to participate in the costs of construction and
8 maintenance as provided for in the official plans of a flood
9 control district or intercounty drainage district.
10 (2) The department shall enforce this part and may promulgate
11 rules as it considers necessary to carry out its duties under this
12 part. However, notwithstanding any rule-promulgation authority that
13 is provided in this part, except for rules authorized under section
14 3112(6) or rules to implement section 3106c, the department shall
15 not promulgate any additional rules under this part after December
16 31, 2006.
17 (3) The department may promulgate rules and take other actions
18 as may be necessary to comply with the federal water pollution
19 control act, 33 USC 1251 to 1387, 1389, and to expend funds
20 available under such law that act for extension or improvement of
21 the state or interstate program for prevention and control of water
22 pollution. This part shall not be construed as authorizing does not
23 authorize the department to expend or to incur any obligation to
24 expend any state funds for such that purpose in excess of any
25 amount that is appropriated by the legislature.
26 (4) Notwithstanding the limitations on rule promulgation under
27 subsection (2), rules promulgated under this part before January 1,
28 2007 shall remain in effect unless rescinded.
29 Sec. 3106c. (1) As used in this section:
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1 (a) "Facility" means either of the following:
2 (i) A facility whose owner or operator is required to file a
3 pollution incident prevention plan under R 324.2006 of the Michigan
4 Administrative Code.
5 (ii) A dry cleaning facility not described in subparagraph (i).
6 (b) "Polluting material" means that term as defined in R
7 324.2002 of the Michigan Administrative Code.
8 (c) "Pollution incident prevention plan" or "PIPP" means a
9 plan required under R 324.2006 of the Michigan Administrative Code.
10 (d) "Response activity" means that term as defined in section
11 20101.
12 (2) A facility owner or operator shall maintain financial
13 assurance for the purposes of subsection (12) in the amount
14 required by subsection (3). The facility owner or operator shall
15 obtain the financial assurance by the following date:
16 (a) For a facility described in subsection (1)(a)(i), by
17 January 1, 2027, or the first date after the effective date of the
18 amendatory act that added this section by which the owner or
19 operator is required to develop or evaluate the pollution incident
20 prevention plan under R 324.2006 of the Michigan Administrative
21 Code, whichever is later.
22 (b) For a facility described in subsection (1)(a)(ii), by
23 January 1, 2026, or 30 days after the facility begins operation,
24 whichever is later.
25 (3) The financial assurance required under subsection (2)
26 shall be a bond in not less than the following amount:
27 (a) For a facility described in subsection (1)(a)(i), 70% of
28 the estimated response activity costs if all polluting materials
29 typically on-site were released into the environment.
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1 (b) For a facility described in subsection (1)(a)(ii), 70% of
2 the estimated response activity costs if all polluting materials
3 typically on-site were released into the environment, or
4 $25,000.00, whichever is greater.
5 (4) For the purposes of subsection (3), response activity
6 costs shall be estimated by either of the following methods at the
7 option of the owner or operator:
8 (a) Costs per-pound for each pound of each polluting material
9 reported in the pollution incident prevention plan inventory. A
10 PIPP inventory updated or initially filed after the effective date
11 of the amendatory act that added this section shall include
12 estimates of the number of pounds of each polluting material that
13 will typically be on-site.
14 (b) A site-specific third-party estimate approved by the
15 department.
16 (5) The department may by rule authorize a financial test for
17 financial assurance as an alternative to a bond.
18 (6) A facility owner or operator shall submit to the
19 department evidence of financial assurance as required by the
20 department. The evidence shall be submitted by the date on which
21 financial assurance is first required under subsection (2) and
22 every 3 years thereafter and within 30 days after the financial
23 assurance is drawn upon for the purposes of subsection (12).
24 Evidence of an insurance policy shall include both of the
25 following:
26 (a) A certificate of insurance that uses wording approved by
27 the department.
28 (b) A certified true and complete copy of the insurance
29 policy.
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1 (7) Not more than 60 days after receiving evidence of
2 financial assurance, the department shall approve or reject the
3 financial assurance in writing and notify the owner or operator of
4 the decision. If the department rejects the financial assurance,
5 the facility owner or operator shall submit new evidence of
6 financial assurance within 30 days or shall suspend operations
7 until the department approves financial assurance for the facility.
8 Not more than 45 days after receiving new evidence of financial
9 assurance for a facility whose immediately preceding evidence of
10 financial assurance was rejected, the department shall approve or
11 reject the financial assurance in writing and notify the owner or
12 operator of the decision. Notice of a decision rejecting the
13 financial assurance shall include a statement specifically
14 describing why the financial assurance was rejected. If a
15 facility's evidence of financial assurance is rejected more than
16 once consecutively, the facility shall suspend operations until the
17 department approves a financial assurance for the facility. The
18 department shall include in a notice rejecting financial assurance
19 under this subsection a statement specifically describing why the
20 financial assurance was rejected.
21 (8) A facility owner or operator that posts cash as a bond
22 shall accrue interest on the bond quarterly at the annual rate of
23 6%, except that the interest rate payable to the owner or operator
24 shall not exceed the rate of interest accrued on the state common
25 cash fund for the quarter in which an accrual is determined.
26 Interest shall be paid to the owner or operator upon release of the
27 bond by the department. Any interest greater than 6% shall be
28 deposited in the state treasury to the credit of the general fund.
29 An owner or operator that uses a certificate of deposit as a bond
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1 shall receive any accrued interest on that certificate of deposit
2 upon release of the bond by the department.
3 (9) The terms of a surety bond, an irrevocable letter of
4 credit, or an insurance policy shall require the issuing
5 institution to notify both the department and the facility owner or
6 operator at least 120 days