COMMERCIAL WASTE DISPOSAL WELL FEE; ESTABLISH S.B. 938 (S-1):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 938 (Substitute S-1 as reported)
Sponsor: Senator Darrin Camilleri
Committee: Energy and Environment
CONTENT
The bill would require the owner of a Class I Commercial Hazardous Waste Disposal Well to
pay the Department of Environment, Great Lakes, and Energy (EGLE) a fee for all waste
disposed of in the well, except for exempted waste as prescribed by the bill. Generally, these
commercial wells dispose of waste that is dangerous or capable of having a harmful effect on
human health on behalf of waste generators. The fee would be $100 per ton or .417 cents
per gallon assessed on all waste disposed of in a well and would have to be adjusted annually
by the Consumer Price Index. The bill would create the Disposal Well Host Community Fund
for depositing of fees, and EGLE would have to provide grants from the Fund for local
governments that had a Class I Commercial Hazardous Disposal Well in their jurisdictions.
MCL 324.32506a
BRIEF RATIONALE
According to testimony, the safety of the Class I Commercial Hazardous Waste Disposal Well
in Romulus has been a challenge for the local government for decades. During emergency
events, local response units cannot properly access the site. This waste disposal well cannot
be shut down legislatively because it has already been approved by current law, but some
believe that imposing expensive operational fees could lead to the owner taking action to
remedy safety concerns or relocating the well entirely, and so the fees have been suggested.
Legislative Analyst: Nathan Leaman
FISCAL IMPACT
The bill would have a limited positive fiscal impact on the EGLE and a positive impact on
affected local governments. The extent of the impact would depend on the amount of fee
revenue generated at the two Class I Commercial Hazardous Waste Disposal Wells in the
State. These fees would be CPI-adjusted annually by the State Treasurer. Administrative costs
would be recuperated from the fees, and the remainder of the fee revenue would be allocated
to providing grants to the local communities within whose jurisdiction a Class I Commercial
Hazardous Waste Disposal Well operated. Fee revenue would be deposited into the newly
created Disposal Well Host Community Fund.
The bill would have no fiscal impact on the Department of Treasury. Based on the level of
estimated revenue within the Fund, ongoing costs associated with administering and investing
the Fund would be less than $100 and are within current appropriations. There are currently
only two Class I Commercial Hazardous Waste Disposal Wells in the State, both located in the
City of Romulus. The City of Romulus would receive all the dollars collected in the Disposal
Well Host Community Fund at the end of each fiscal year after administrative expenses.
Date Completed: 12-9-24 Fiscal Analyst: Jonah Houtz
Elizabeth Raczkowski; Cory Savino, PhD
floor\sb938 Bill Analysis @ www.senate.michigan.gov/sfa
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.


Statutes affected:
Substitute (S-1): 324.62506
Substitute (S-2): 324.62506
Senate Introduced Bill: 324.62506
As Passed by the Senate: 324.62506