HOUSE BILL No. 6564

 

November 10, 2010, Introduced by Rep. Scripps and referred to the Committee on Energy and Technology.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 30113 (MCL 324.30113), as amended by 2006 PA

 

496, and by adding section 32504b and part 324.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 30113. (1) The land and water management permit fee 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 state

 

treasurer shall annually present to the department an accounting of

 


the amount of money in the fund.

 

     (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 department shall expend money from the fund, upon

 

appropriation, only to implement this part and the following:

 

     (a) Sections 3104, 3107, and 3108.

 

     (b) Before October 1, 2004, section 12562 of the public health

 

code, 1978 PA 368, MCL 333.12562, or, on or after October 1, 2004,

 

part Part 33.

 

     (c) Part 303.

 

     (d) Part 315.

 

     (e) Part 323.

 

     (f) Part 324.

 

     (g) (f) Part 325.

 

     (h) (g) Part 339.

 

     (i) (h) Part 353.

 

     (j) (i) Section 117 of the land division act, 1967 PA 288, MCL

 

560.117.

 

     (5) The department shall annually report to the legislature

 

how money in the fund was expended during the previous fiscal year.

 

PART 324 OFFSHORE WIND ENERGY FACILITIES

 

     Sec. 32401. As used in this act:

 

     (a) "Abandoned property" means that term as defined in section

 

76101.

 

     (b) "Advisory council" means the offshore wind advisory

 

council created in section 32469.

 

     (c) "Aquatic environment" means the physical, chemical,

 


atmospheric, and biological components, conditions, and factors

 

that interactively determine the productivity, state, condition,

 

and quality of the aquatic ecosystem of the Great Lakes.

 

     (d) "Bottomlands" means lands in the Great Lakes lying below

 

and lakeward of the natural ordinary high-water mark.

 

     (e) "Categorical exclusion area" means an area identified by

 

the department under section 32415(1) or (2).

 

     (f) "Commercial activities" means site assessment activities,

 

construction of an offshore wind energy facility, commercial

 

operations, and decommissioning.

 

     (g) "Commercial operations" means all activities located on or

 

in unpatented bottomlands or above, on, in, or under waters of the

 

Great Lakes associated with the generation, storage, or

 

transmission of electricity or other energy product from an

 

existing offshore wind energy facility, for distribution, sale, or

 

other commercial use.

 

     (h) "Conditional area" means an area identified by the

 

department under section 32415(3) or (4).

 

     (i) "Construction and operations permit" means a permit for

 

construction of an offshore wind energy facility and commercial

 

operations required under section 32437.

 

     Sec. 32403. As used in this part:

 

     (a) "Decommissioning" means removal of structures authorized

 

under a construction and operations permit and restoration of

 

leased bottomlands and waters to their prelease condition.

 

"Decommission" has a corresponding meaning. Decommissioning does

 

not include the replacement of portions of an existing offshore

 


wind energy facility.

 

     (b) "Decommissioning permit" means a permit required under

 

section 32453.

 

     (c) "Department" means the department of natural resources and

 

environment.

 

     (d) "Electric service platform" means an offshore transformer

 

used to increase the voltage of electricity from a wind turbine.

 

     (e) "Export cable" means an offshore cable that transmits

 

electricity from an electric service platform to a transmission

 

line.

 

     (f) "Great Lakes" means Lake Superior, Lake Michigan, Lake

 

Huron, and Lake Erie and includes the connecting water, Lake St.

 

Clair, and the bays and harbors of any of these lakes.

 

     (g) "Grid cell" means an area bounded by lines of 1-minute

 

intervals of latitude and longitude.

 

     (h) "Gross revenue" means the total amount of money or other

 

consideration received by a lessee or an affiliated party, under

 

any agreement, settlement, or judgment, for the sale, use, or other

 

disposition of electricity or other energy product generated or

 

capable of being generated at the leased site.

 

     (i) "Interturbine cable" means an offshore cable that

 

transmits electricity from 1 or more wind turbines to an electric

 

service platform.

 

     Sec. 32405. As used in this act:

 

     (a) "Lease" means a conveyance from this state under section

 

32423 of a leasehold interest in unpatented bottomlands and waters

 

above unpatented bottomlands for purposes of commercial activities.

 


     (b) "Lessee" means the leaseholder, including a department-

 

approved assignee. When describing the conduct required of parties

 

engaged in activities at the leased site, lessee also includes the

 

operator and all persons authorized by the leaseholder or operator

 

to conduct activities at the leased site. When used in reference to

 

decommissioning, after the lease has terminated, lessee means the

 

former leaseholder and includes all persons authorized by the

 

former leaseholder to conduct decommissioning at the former leased

 

site.

 

     (c) "Local unit of government" means a county, township, city,

 

or village.

 

     (d) "MEDC" means the Michigan economic development

 

corporation, the public body corporate created under section 28 of

 

article VII of the state constitution of 1963 and the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512, by a contractual interlocal agreement effective April 5,

 

1999, and subsequently amended, between local participating

 

economic development corporations formed under the economic

 

development corporations act, 1974 PA 338, MCL 125.1601 to

 

125.1636, and the Michigan strategic fund created under section 5

 

of the Michigan strategic fund act, 1984 PA 270, MCL 125.2005.

 

     (e) "Michigan state housing development authority" means the

 

public body created by section 21 of the state housing development

 

authority act of 1966, 1966 PA 346, MCL 125.1421.

 

     (f) "Mile" means a statute mile.

 

     (g) "MPSC" means the Michigan public service commission

 

created under section 1 of 1939 PA 3, MCL 460.1.

 


     Sec. 32407. As used in this part:

 

     (a) "Offshore wind energy facility" means any electrical

 

energy producing wind turbines connected to the electric power grid

 

by transmission lines and permanently or temporarily attached to

 

unpatented bottomlands, including any associated structures such as

 

support towers, permanently moored vessels, interturbine cables,

 

electric service platforms, and export cables, but not including

 

transmission lines. Any group of such installations that includes a

 

primary installation with 1 or more secondary installations is a

 

single offshore wind energy facility for purposes of this act

 

unless the department determines that the complexity of the

 

secondary installations justifies their classification as 1 or more

 

separate offshore wind energy facilities.

 

     (b) "Operator" means the legal entity having control or

 

management of activities at the leased site. The operator may be

 

the lessee or a contractor designated by the lessee under this

 

part.

 

     (c) "Person" means any individual, partnership, corporation,

 

association, governmental entity, or other legal entity.

 

     (d) "Regional planning commission" means the regional planning

 

commission or council of governments representing a state planning

 

and development region created by Executive Directive No. 1968-1,

 

as amended.

 

     (e) "Site assessment activities" means any of the following:

 

     (i) Activities that utilize structures and are conducted to

 

characterize a site for the development of an offshore wind energy

 

facility, such as limnological, meteorological, or geophysical

 


resource assessment surveys.

 

     (ii) Removal of structures authorized under a site assessment

 

permit and restoration of leased bottomlands and waters to their

 

prelease condition.

 

     (f) "Site assessment permit" means a permit for site

 

assessment activities required under section 32427(1).

 

     (g) "Structure" means any equipment or man-made structure

 

placed on, placed in, or secured to the bottomlands, other than a

 

temporarily moored vessel.

 

     (h) "Transmission line" means an onshore electrical line and

 

related equipment used to transfer electricity from an export cable

 

to the electric grid at system bulk supply voltage of 100 kilovolts

 

or more.

 

     (i) "Utility line" means any of the following not related to

 

the specific offshore wind energy facility in question:

 

     (i) A telecommunications line.

 

     (ii) An oil, gas, or other pipeline.

 

     (iii) An electric power line.

 

     (j) "Violation of this part" means a violation of this part or

 

a rule promulgated, a lease entered, a plan approved, a permit or

 

other approval granted, or an order issued under this part.

 

"Violate this part" has a corresponding meaning.

 

     Sec. 32409. (1) To minimize delay and duplication, while

 

addressing the unique management concerns of this state, the

 

department shall make reasonable efforts to coordinate leasing,

 

permitting, and other regulatory processes under this part with

 

applicable regulatory processes of Indian tribes, other state

 


agencies, including the MPSC, and other federal agencies, including

 

the federal aviation administration, the federal communications

 

commission, the United States coast guard, the United States

 

department of homeland security, and the United States army corps

 

of engineers. Coordination includes use of the same applications as

 

required by other state or federal agencies, use of information

 

from reports, analyses, environmental impact statements,

 

environmental assessments, and other documents as required by such

 

agencies, and holding hearings jointly with such agencies.

 

     (2) The department, advisory council, a regional planning

 

commission, or other entities may consolidate meetings, hearings,

 

and notices under this part relating to different parcels of

 

bottomlands if the requirements of this part are otherwise met.

 

     (3) The MEDC, in consultation with other relevant state

 

agencies, shall prepare and post on its website a checklist of

 

state leases, permits, and other agreements or approvals that are

 

required under state law for commercial activities. The checklist

 

shall designate the agency with jurisdiction over each agreement

 

and approval, information required to be submitted to the agency,

 

and a timeline for providing the information.

 

     Sec. 32411. (1) Subject to section 32504b, a person shall not

 

conduct site assessment activities except as authorized by a lease

 

and a site assessment permit. A person shall remove site assessment

 

structures as required by the site assessment permit.

 

     (2) A person shall not construct or operate an offshore wind

 

energy facility or engage in commercial operations except as

 

authorized by a lease and a construction and operations permit.

 


     (3) A lessee shall remove offshore wind energy facility

 

structures when required under section 32453, and as required by a

 

decommissioning permit.

 

     (4) A permit under this part also serves as both of the

 

following:

 

     (a) A water quality certificate as required under section 401

 

of title IV of the federal water pollution control act, 33 USC

 

1341.

 

     (b) A coastal zone management consistency determination under

 

section 307 of the coastal zone management act of 1972, 16 USC

 

1456.

 

     (5) A person is not required to be a littoral landowner to

 

nominate a parcel for lease auction, participate in a lease

 

auction, enter a lease, or apply for a permit under this part.

 

     Sec. 32413. (1) The department shall approve a parcel for

 

lease auction, enter a lease, or approve a site assessment,

 

construction and operations, or decommissioning permit application

 

if activities and structures authorized under the lease or permit

 

will satisfy all of the following requirements:

 

     (a) Provide for the protection of the public health, safety,

 

and welfare.

 

     (b) Not result in significant adverse effects on cultural

 

resources, natural resources, the environment, or the public trust

 

in the bottomlands and waters of the Great Lakes, and any adverse

 

effects will be mitigated to the extent reasonable and practicable.

 

     (c) Not interfere with activities or structures already

 

authorized under this part.

 


     (d) Meet any other applicable requirements of this part and

 

rules promulgated under this part, including, but not limited to,

 

financial assurance requirements under section 32449, if

 

applicable.

 

     (2) The department may modify a lease nomination or impose

 

reasonable terms and conditions in a lease or permit issued under

 

this part to ensure compliance with the requirements of subsection

 

(1) and other applicable provisions of this part or rules

 

promulgated under this part.

 

     Sec. 32415. (1) Not more than 90 days after the effective date

 

of this section, the department shall identify and map areas of the

 

Great Lakes that are not suitable for offshore wind energy

 

facilities because those areas are used or dedicated for use under

 

state or federal law for aids to navigation, buoyed navigation

 

channels, military operation areas, utility lines, or other

 

conflicting uses or are necessary to provide buffers for those uses

 

or for airports.

 

     (2) The department shall consult with the United States coast

 

guard, the United States department of defense, the federal

 

aviation administration, the department of military and veterans

 

affairs, and representatives of the telecommunications, oil, gas,

 

and electric transmission industries as applicable in making

 

determinations of categorical exclusion areas. At least once every

 

3 years, the department shall update the categorical exclusion

 

areas using the latest available information.

 

     (3) Not more than 90 days after the effective date of this

 

section, the department shall identify and map areas of the Great

 


Lakes that may be suitable for offshore wind energy facilities but

 

that include 1 or more potentially competing features or uses or

 

are necessary to provide buffers for such features or uses. The

 

following are among potentially competing features or uses for the

 

purposes of this subsection and associated buffer distances:

 

     (a) Zone of high biological productivity--3 miles.

 

     (b) Habitat necessary to the conservation of rare species of

 

wildlife, including element occurrences of state-listed endangered

 

or threatened species and critical habitat for federally listed

 

endangered or threatened species, other than plants--5 miles.

 

     (c) Location of globally or continentally significant

 

concentration of bird or bat species of conservation concern as

 

identified using nationally or internationally recognized criteria-

 

-5 miles.

 

     (d) Location of very high concentration of birds or bats on at

 

least a seasonal basis, including significant stopover location,

 

offshore waterfowl foraging area, documented migration or travel

 

corridor, nesting location of colonial birds, or flight route into

 

bat hibernacula--5 miles.

 

     (e) Recreational fish spawning site or refuge as documented by

 

state or federal authorities where fish spawning occurs for

 

sensitive species or species of recovery--1 mile.

 

     (f) Tribal and nontribal licensed fishing site based on

 

reported fish harvest locations--0.5 mile.

 

     (g) A facility or area specifically designated for the

 

disposal of contaminated dredged sediment--0.5 mile.

 

     (h) National park lakeshore as identified by the United States

 


department of the interior--13 miles.

 

     (i) State-recognized and mapped shipwreck site--0.5 mile.

 

     (j) State underwater preserve, including Thunder Bay national

 

marine sanctuary.

 

     (k) State-recognized underwater area of archeological

 

significance--0.5 mile.

 

     (l) Legal boundary with another state or province--0.5 mile,

 

unless the offshore wind energy facility is approved by the other

 

state or province.

 

     (m) Shipping lane through open water primarily used for

 

commercial shipping traffic and noted on the most recent nautical

 

chart issued by the national oceanic and atmospheric

 

administration, United States department of commerce--1 mile on

 

each side of the shipping lane.

 

     (4) At least once every 3 years, the department shall update

 

the conditional areas under subsection (3) using the latest

 

available information.

 

     (5) This part does not prohibit an export cable from being

 

located in a categorical exclusion area, in a conditional area, or

 

within a specified distance from shoreline.

 

     Sec. 32417. (1) The department shall award leases of parcels

 

of unpatented bottomlands for offshore wind energy facilities by

 

public auction. The department shall not select a parcel of

 

bottomlands for lease auction unless the parcel has been nominated

 

for lease. A parcel of bottomlands may be nominated for lease by 1

 

of the following:

 

     (a) The department, pursuant to subsection (4).

 


     (b) A private party, pursuant to subsection (5).

 

     (c) A county, pursuant to subsections (6) and (7).

 

     (2) The department shall establish 30-day time periods for the

 

submission of nominations. The first nomination period shall begin

 

not more than 180 days after the effective date of this section.

 

Subsequent nomination periods shall begin at times determined by

 

the department based on demand. Not less than 90 days before a

 

nomination period begins, the department shall send notice of the

 

nomination period by first-class mail to the county clerk of each

 

county with shoreline on the Great Lakes. The department shall also

 

post a notice of the nomination period on its website beginning not

 

less than 90 days before the nomination period begins. A notice

 

under this subsection shall specify the nomination period and set

 

forth nomination requirements and procedures.

 

     (3) A nomination by a private party or county shall be

 

submitted to the department, and a nomination by the department

 

shall be placed on file in the department, in writing on a form

 

developed by the department. A nomination shall include a detailed

 

description of the parcel based upon a grid cell map produced by

 

the department. A nomination by a private party or county shall be

 

accompanied by a nonrefundable fee of $0.25 per acre. If a

 

nomination by a private party or county is not complete, or is

 

submitted before the nomination period begins or after the

 

nomination period has ended, the department shall return the

 

nomination.

 

     (4) The department shall nominate parcels of bottomlands for

 

lease. A parcel that is in a categorical exclusion area or a

 


conditional area or is less than 6 miles from any Great Lakes

 

shoreline is not eligible to be nominated under this subsection.

 

     (5) A private party that is qualified under section 32421 may

 

nominate a parcel of bottomlands for lease. A parcel that is in a

 

categorical exclusion area or is less than 6 miles from any

 

shoreline in this state is not eligible to be nominated for lease

 

under this subsection.

 

     (6) If all or part of a parcel of bottomlands is less than 6

 

miles from the shoreline of 1 or more counties in this state, the

 

parcel may be nominated for lease by a resolution approved by the

 

county board of commissioners of each such county. A parcel that is

 

in a categorical exclusion area or is less than 3 miles from any

 

Great Lakes shoreline is not eligible to be nominated for lease

 

under this subsection. Before adopting a resolution under this

 

subsection, the county board of commissioners shall submit the

 

proposed resolution to the county planning commission for its

 

recommendations. If the county does not have a planning commission,

 

the proposed resolution shall be referred to the regional planning

 

commission. The planning commission shall hold a public meeting on

 

the proposal. The planning commission shall publish notice of the

 

meeting in a newspaper of general circulation within the county not

 

less than 20 days before the meeting. Comments may be submitted at

 

the meeting or may be submitted to the planning commission in

 

writing or by electronic mail at any time not later than 15 days

 

after the meeting. The notice shall include or describe all of the

 

following:

 

     (a) The time, date, and place, and purpose of the meeting.

 


     (b) The opportunity to submit written comments to the planning

 

commission in writing or by electronic mail at any time not later

 

than 15 days after the date of the meeting, and the postal and

 

electronic mail address for submitting comments.

 

     (7) Not more than 60 days after receipt of the proposed

 

resolution, the planning commission shall submit to the county

 

board of commissioners its recommendations on the proposed

 

nomination in writing together with a summary of written comments

 

received during the time period specified in subsection (6)(b).

 

After receipt of the recommendations and comments of the planning

 

commission or expiration of the 60-day period, whichever occurs

 

first, the county board of commissioners may modify the proposed

 

resolution and shall conduct a public hearing on the proposed

 

resolution. After the public hearing, the county board of

 

commissioners may adopt the resolution nominating the parcel with

 

or without modifications. If the resolution is adopted, the county

 

clerk shall promptly submit a copy of the resolution to the

 

department.

 

     (8) Two or more planning commissions or 2 or more county

 

boards of commissioners may hold joint meetings or hearings under

 

subsection (6) or (7), respectively.

 

     Sec. 32419. (1) Not more than 45 days after the close of the

 

period under section 32417 during which a parcel is nominated for

 

lease auction, the department shall hold a public hearing on the

 

nomination and the terms and conditions of a lease. The hearing

 

shall be held in the county nearest to the nominated parcel. The

 

department shall publish a notice of the hearing and a comment

 


period in a newspaper of general circulation in that county and

 

send notice by first-class mail to the clerk of each local unit of

 

government with any Great Lakes shoreline less than 12 miles of the

 

nominated parcel not less than 30 days before the hearing. The

 

department shall also post a notice of the hearing and comment

 

period on its website beginning not less than 30 days before the

 

hearing. The last day of the comment period is 15 days after the

 

hearing. Comments shall be submitted in writing or by electronic

 

mail, except that comments at the hearing may be submitted orally.

 

     (2) A notice under subsection (1) shall include or describe

 

all of the following:

 

     (a) The time, date, and place, and purpose of the hearing.

 

     (b) The opportunity to submit comments to the department in

 

writing or by electronic mail at any time not more than 15 days

 

after the date of the hearing, and the postal and electronic mail

 

address for submitting comments.

 

     (c) Standard lease terms and conditions, including, but not

 

limited to, those described in section 32425(a) to (e).

 

     (d) Specific lease terms as described in section 32425(f).

 

     (e) Lease auction details, including all of the following:

 

     (i) Application and bidding procedures and instructions.

 

     (ii) Minimum bid.

 

     (3) Not more than 45 days after the public hearing under

 

subsection (1), the department shall submit to the chairperson of

 

the advisory council a copy of the nomination, a copy or transcript

 

of each public comment received under subsection (1), a summary of

 

the comments, and the department's responses to the comments. Not

 


more than 45 days after the department submits this information to

 

the chairperson of the advisory council, the advisory council shall

 

review the information and submit to the department recommendations

 

regarding approval, modification, or rejection of the nomination

 

and the terms and conditions of a lease.

 

     (4) The department shall prepare a summary of the department's

 

responses to the advisory council's recommendations. After the

 

summary is prepared and not more than 45 days after receipt of the

 

advisory council's recommendations, the department shall approve or

 

disapprove a nominated parcel for auction. The department shall

 

approve the parcel if the requirements of section 32413 are met.

 

The department may approve the parcel with modifications necessary

 

to meet such requirements.

 

     Sec. 32421. (1) The department shall award leases by oral

 

auction to the qualified bidder making the highest bid.

 

     (2) After approval of a nominated parcel to be auctioned for

 

lease, the department shall publish a public notice of the lease

 

auction in a newspaper of general circulation in the county nearest

 

the parcel not less than 45 days before the scheduled auction. The

 

department shall also post a notice of the auction on its website

 

beginning not less than 45 days before the auction. The notices

 

under this subsection shall include or describe all of the

 

following:

 

     (a) The information listed in section 32419(2)(c) to (e).

 

     (b) Procedures for awarding a lease and handling unsuccessful

 

applications or bids.

 

     (c) The official department lease form to be used or a

 


reference to that form.

 

     (3) Only 1 designated individual may bid on behalf of a

 

participant in a lease auction.

 

     (4) To qualify as a participant in a lease auction or a lessee

 

under this part, a person shall meet all of the following

 

requirements:

 

     (a) Demonstrate technical and financial capability to

 

construct, operate, maintain, and remove projects for which the

 

person is requesting authorization. Documentation may include the

 

following:

 

     (i) Descriptions of international or domestic experience with

 

renewable energy projects or other types of electric energy

 

projects.

 

     (ii) Information establishing the ability to raise capital

 

sufficient to carry out terms and conditions described in section

 

32429(8).

 

     (iii) Other relevant information required by the department.

 

     (b) Demonstrate the ability to obtain and maintain financial

 

assurance and liability insurance under section 32449.

 

     (c) Unless the person is an individual, submit evidence

 

acceptable to the department that all of the following requirements

 

are met:

 

     (i) The person is authorized to conduct business under the laws

 

of this state.

 

     (ii) The person is authorized to hold a lease under its

 

partnership agreement, articles of incorporation, or other

 

organizational documents.

 


     (iii) An individual bidding for a lease or signing a lease,

 

assignment, or permit under this part on behalf of the person is

 

authorized to bind the person when conducting business with this

 

state.

 

     (5) Information required under subsection (4) must be received

 

by the department at least 30 days before the lease auction. The

 

department shall assign a unique code to each prospective lease

 

auction participant upon acceptance of the information and shall

 

acknowledge the sufficiency of the submittal in writing.

 

     (6) A lease or permit under this part shall cover only 1

 

offshore wind energy facility.

 

     Sec. 32423. (1) A successful lease auction participant shall

 

pay the full amount bid at the conclusion of the auction. The

 

amount bid shall be paid in cash or by cashier's check, certified

 

check, or money order payable to the state of Michigan. The

 

department shall forward the payment to the state treasurer for

 

deposit in the land and water management permit fee fund. If a

 

successful lease auction participant fails to timely pay the total

 

amount due under this subsection, the person forfeits the lease

 

rights successfully bid upon.

 

     (2) If the department accepts a bid, the department shall

 

prepare and obtain state administrative board approval of the

 

lease. The department shall then send the successful lease auction

 

participant 3 copies of the approved unexecuted lease.

 

     (3) Not more than 21 days after the successful lease auction

 

participant receives the unexecuted lease copies, the lease auction

 

participant shall execute the copies and file them with the

 


department along with a certificate of insurance and evidence of

 

financial assurance as described under section 32449.

 

     (4) The lease auction participant shall forfeit the amount bid

 

and the right, subject to subsection (8), to enter the lease if the

 

participant fails to comply with the requirements of subsection

 

(3), applicable lease auction or lease execution rules, or terms

 

set forth in the lease auction notice under section 32419. In the

 

event of forfeiture under this subsection, the department shall

 

proceed under section 32421 to hold another lease auction for the

 

subject parcel, and the person subject to the forfeiture is not

 

eligible to participate in the new auction for that parcel.

 

     (5) The department may extend the time period under subsection

 

(3) if the department determines that the lease auction participant

 

has demonstrated sufficient cause for the delay.

 

     (6) Subject to subsection (4), upon receipt of the items

 

required under subsection (3), the department shall execute the

 

lease and send the lessee 1 fully executed copy.

 

     (7) Not more than 45 days after the lessee receives the fully

 

executed lease copy under subsection (6), the lessee shall pay the

 

first year's rent as provided in section 32447.

 

     (8) The department may withdraw a parcel for which the

 

department has held a lease auction before the successful lease

 

auction participant and the department execute the lease. If the

 

department exercises this right, the department shall refund the

 

amount bid, without interest, and provide the successful lease

 

auction participant with a written explanation for the withdrawal.

 

     Sec. 32425. A lease shall provide for at least all of the

 


following:

 

     (a) The lease is for commercial activities.

 

     (b) The lessee shall not conduct site assessment activities

 

under the lease except pursuant to the terms of a site assessment

 

permit.

 

     (c) The lessee shall not construct or operate an offshore wind

 

energy facility under the lease except pursuant to the terms of a

 

construction and operations permit.

 

     (d) The term of the lease is 30 years, subject to extension

 

under section 32463 and provisions of this part providing for

 

suspension or early termination of the lease.

 

     (e) Rent and royalty payments pursuant to section 32447.

 

     (f) A detailed description of the parcel based upon a grid

 

cell map produced by the department.

 

     (g) Site-specific lease stipulations.

 

     (h) Such other terms, conditions, and requirements as the

 

department determines to be just and equitable and in conformance

 

with the requirements of section 32413.

 

     Sec. 32427. (1) A person shall not conduct site assessment

 

activities except pursuant to the terms of a permit issued by the

 

department. To obtain a site assessment permit, a lessee shall

 

submit an application to the department on a form provided by the

 

department. The application shall be accompanied by a nonrefundable

 

fee of $5,000.00.

 

     (2) If the lessee requests a preapplication meeting with the

 

department, the department shall meet with the lessee or its

 

representatives to review proposed site assessment activities or a

 


proposed site assessment permit application.

 

     (3) Before submitting a site assessment permit application, a

 

lessee shall hold at least 1 public meeting to provide information

 

and receive public comment on the proposed application. The meeting

 

shall be held at the expense of the applicant, in the county

 

nearest to the leased site. Comments may be submitted at the

 

meeting or may be submitted to the lessee in writing or by

 

electronic mail at any time through 30 days after the meeting. The

 

lessee shall publish a notice of the meeting and comment period in

 

a newspaper of general circulation in that county not less than 20

 

days before the meeting. The lessee shall also post a notice of the

 

meeting and comment period on its website, if any, beginning not

 

less than 20 days before the meeting. The notices shall also

 

include or describe all of the following:

 

     (a) The purpose of the comment period.

 

     (b) The opportunity to submit comments to the applicant in

 

writing or electronically at any time through the expiration of the

 

comment period and the postal and electronic mail address for

 

submitting comments.

 

     (4) A site assessment permit application shall be submitted

 

not more than 180 days after the department executes the lease. If

 

the lessee fails to timely submit for a site assessment permit

 

application, the lease is terminated, and the rent payment for the

 

first year of the lease shall not be refunded.

 

     (5) A site assessment permit application shall include all of

 

the following:

 

     (a) A summary of public comments received under subsection (3)

 


and the lessee's responses to those comments.

 

     (b) Baseline physical characterization surveys, or plans for

 

such surveys, such as geological and geophysical surveys or hazard

 

surveys, to identify bottom type (such as mud, sand, silt, bedrock,

 

or rock outcroppings), potential sediment transport, appropriate

 

sediment testing and disposal, as necessary, or other relevant

 

physical characteristics in the proposed location of any structure

 

proposed for site assessment purposes.

 

     (c) Baseline biological surveys, or plans for such surveys,

 

such as fish and wildlife monitoring studies, using radar, side-

 

scan sonar, sub-bottom profiler, magnetometer, or other means as

 

required by the department to characterize biological resources,

 

including, but not limited to, bat and bird use, threatened and

 

endangered species and associated habitat, benthic communities, and

 

vegetation, at the leased site in general and specifically in the

 

proposed location of any structure proposed for site assessment

 

purposes.

 

     (d) Baseline archaeological surveys, or plans for such

 

surveys, using side-scan sonar, sub-bottom profiler, magnetometer,

 

or other means as required by the department to identify cultural,

 

historical, and archaeological sites, including abandoned property

 

at the leased site in general and specifically in the proposed

 

location of any structure proposed for site assessment purposes.

 

     (e) The surface location, such as global positioning system

 

coordinates, of each human-made object currently located on the

 

bottomlands and each structure proposed to be located on the

 

bottomlands during site assessment and the estimated water depth at

 


that location.

 

     (f) General structural and project design, fabrication, and

 

installation information for each type of structure associated with

 

site assessment activities and the location of each such structure

 

on the most recent nautical chart issued by the national oceanic

 

and atmospheric administration, United States department of

 

commerce or grid cell map produced by the department.

 

     (g) Site assessment activities and objectives, and a proposed

 

schedule of site assessment activities from start to completion.

 

     (h) Competing use surveys that identify the current uses in

 

the vicinity of the proposed structures associated with site

 

assessment activities and the location of the uses. Such uses may

 

include, but are not limited to, commercial, treaty, and

 

recreational fishing, water intakes or outfalls, utility lines,

 

military uses, shipping lanes, ferry routes, recreational boating

 

courses, designated refuges, bottomland preserves, and special

 

management areas.

 

     (i) Environmental protection features or measures the lessee

 

will use during site assessment activities.

 

     (j) A plan to remove site assessment structures and restore

 

leased bottomlands and waters to their prelease condition. A

 

removal plan shall be prepared by a licensed professional engineer

 

and provide for all of the following:

 

     (i) An implementation schedule for all removal and restoration

 

activities.

 

     (ii) Removal of the structures permitted under this part from

 

all bottomlands and waters. However, a site assessment permit may

 


authorize a structure that has a continuing beneficial use to

 

remain in place following site assessment activities.

 

     (iii) Minimizing bottomland disturbances and suspended sediments

 

during removal of structures.

 

     (iv) As necessary, appropriate sediment testing and disposal.

 

     (v) Monitoring the effects of removal on the aquatic

 

environment both during and subsequent to removal.

 

     (vi) An estimate of the total removal cost, without regard to

 

salvage value of the structures, and the net removal cost after

 

deducting salvage value.

 

     (k) A safety plan to protect the public from events such as

 

electrocution; collisions of aircraft or vessels with construction

 

equipment or permitted structures; entanglement of fishing gear,

 

anchors, dredging equipment, or other underwater devices with such

 

equipment or structures; or such equipment or structures becoming

 

unmoored or detached. The safety plan shall include a plan to mark

 

construction equipment and permitted structures with fog signals,

 

low-intensity navigation lights, hazard-marking lights, or other

 

aids to navigation and by painting, consistent with federal

 

aviation administration and United States coast guard guidelines

 

and requirements. To the extent compatible with the other goals of

 

this subdivision, a marking plan shall minimize adverse effects on

 

wildlife, and adverse visual effects, including, but not limited

 

to, sky glow and glare.

 

     (l) An emergency prevention, monitoring, and response plan that

 

includes all of the following:

 

     (i) Procedures the lessee will take during an emergency,

 


including, but not limited to, immediate shutdown and containment

 

and cleanup of any spills.

 

     (ii) A protocol for coordination with and reporting an

 

emergency to local, state, and federal agencies.

 

     (iii) A schedule for annual testing of emergency equipment.

 

     (m) A description of the measures the lessee will use to avoid

 

or minimize adverse effects on cultural or archaeological sites or

 

the environment, including incidental take of fish or wildlife,

 

before site assessment activities are conducted, and a description

 

of how any such adverse effects from site assessment activities

 

will be mitigated. Protection of cultural and archaeological sites

 

shall be evaluated using applicable criteria for national

 

significance, in accordance with regulations promulgated by the

 

United States secretary of the interior pursuant to section

 

101(a)(2) of the national historic preservation act, 16 USC

 

470a(a)(2).

 

     (n) Any other deployment protocols.

 

     (o) A listing of all other state, federal, and local permits

 

and approvals required for the structures and activities that are

 

the subject of the application indicating whether each such permit

 

or approval has been applied for or obtained.

 

     (p) The name, postal address, electronic mail address, and

 

telephone number of an authorized representative of the lessee.

 

     (q) A designation of the operator, if applicable.

 

     (r) Identification of consultants and consultant contact

 

information.

 

     (s) Evidence of financial assurance and a certificate of

 


liability insurance as required under section 32449.

 

     (t) A listing of all documents referenced in the application.

 

     (u) Other relevant information required by the department.

 

     Sec. 32429. (1) Effective 45 days after the state receives an

 

application for a site assessment permit, the application shall be

 

considered to be administratively complete unless the department

 

proceeds as provided under subsection (2).

 

     (2) If, before the expiration of the 45-day period under

 

subsection (1), the department notifies the applicant that the

 

application is not administratively complete, specifying the

 

information necessary to make the application administratively

 

complete, or notifies the applicant that a fee required to

 

accompany the application has not been paid, specifying the amount

 

due, the running of the 45-day period under subsection (1) is

 

tolled until the applicant submits to the department the specified

 

information or fee amount due. The notice shall be given in writing

 

or by electronic mail. After receipt of an administratively

 

complete site assessment permit application, the department may, in

 

writing, request the applicant to submit specific additional

 

information that the department determines is necessary to complete

 

the review process.

 

     (3) The applicant shall pay the fee requested under subsection

 

(2) or provide additional information that is the subject of a

 

notification or request under subsection (2) not more than 45 days

 

after receiving the request. If the applicant shows sufficient

 

cause for needing additional time to provide the information, the

 

department may extend the period to provide the information for an

 


additional 30 days. If the applicant fails to timely provide the

 

information or pay the fee, the department shall disapprove the

 

application and notify the applicant in writing of the reasons for

 

disapproval. If the application is disapproved, the lease is

 

terminated and any lease payment shall not be refunded.

 

     (4) If the site assessment permit application is

 

administratively complete, the fee has been paid, and any

 

additional information requested under subsection (2) has been

 

timely provided, the department shall receive comment on the

 

application. Comments shall be submitted to the department in

 

writing or by electronic mail. The department shall publish notice

 

of the comment period in a newspaper of general circulation in the

 

county nearest to the lease site and send notice by first-class

 

mail to the clerk of each local unit of government with any Great

 

Lakes shoreline not more than 12 miles from the leased site at

 

least 30 days before the expiration of the comment period. The

 

department shall also post a notice of the comment period on its

 

website beginning at least 30 days before the expiration of the

 

comment period. The notices shall include or describe all of the

 

following:

 

     (a) The purpose of the comment period.

 

     (b) The opportunity to submit comments to the department in

 

writing or by electronic mail at any time through the expiration of

 

the comment period and the postal and electronic mail address for

 

submitting comments.

 

     (5) After the comment period expires, the department shall

 

prepare a summary of the comments received and the department's

 


responses to the comments.

 

     (6) Subject to subsection (3), not more than 150 days after

 

the date the site assessment permit application is received and

 

administratively complete, the department shall approve or

 

disapprove the application. The department shall approve the

 

application if it meets the requirements of section 32413. The

 

department may approve the application with modifications necessary

 

to meet such requirements.

 

     (7) If the department disapproves the site assessment permit

 

application, other than for reasons set forth in subsection (3),

 

the department shall notify the applicant in writing of the reasons

 

for the disapproval. The applicant may submit revisions to the

 

permit application, in writing, not more than 60 days after notice

 

is received. The department may extend the period to submit

 

revisions if the applicant submits to the department information

 

demonstrating sufficient cause for needing additional time. If the

 

applicant fails to timely submit the necessary revisions, the lease

 

is terminated.

 

     (8) If the department approves a site assessment permit

 

application, the department shall notify the applicant in writing

 

and issue a permit that incorporates the terms and conditions under

 

which site assessment activities shall be conducted. The terms and

 

conditions shall include at least all of the following:

 

     (a) Requirements to ensure that the permittee uses

 

commercially reasonable available technology, best management

 

practices, and properly trained personnel for permitted activities.

 

     (b) Plans and requirements to collect information described in

 


section 32427(5) not already included in the site assessment permit

 

application.

 

     (9) A site assessment permit expires upon the earlier of the

 

following:

 

     (a) Issuance of a construction and operations permit.

 

     (b) Termination of the lease.

 

     Sec. 32431. If the department issues a site assessment permit,

 

the lessee shall do all of the following:

 

     (a) Notify the department in writing not more than 30 days

 

after completing installation of permitted structures.

 

     (b) Prepare and submit to the department a report on November

 

1 of each year that summarizes the activities authorized by the

 

permit, the results of those activities, and any incidents that

 

occurred at the leased site during the year period ending the

 

preceding September 30. The report shall also identify and describe

 

any mitigation measures and monitoring methods and their

 

effectiveness. If mitigation measures or monitoring methods were

 

not effective, the lessee shall include recommendations for new

 

mitigation measures or monitoring methods, modifying site

 

assessment activities or structures, or commencing removal of

 

structures and restoration of leased bottomlands and waters to

 

their prelease condition.

 

     (c) If submerged abandoned property is discovered by the

 

lessee while conducting site assessment activities, comply with

 

part 761. In addition, the lessee shall immediately suspend bottom-

 

disturbing activities within 1,000 feet of the abandoned property

 

and, not more than 72 hours after the discovery, report the

 


abandoned property to the department and the Michigan state housing

 

development authority. Not more than 60 days after receiving the

 

report or, if waters are not navigable because of winter

 

conditions, not more than 60 days after waters become navigable,

 

the department either shall commence an investigation into the

 

nature and extent of the abandoned property or shall direct the

 

lessee to conduct the investigation at the lessee's cost in a

 

manner prescribed by the department and subject to the department's

 

supervision. Based on the results of the investigation, the

 

department shall promptly determine whether the abandoned property

 

meets criteria for national significance, in accordance with

 

regulations promulgated by the United States secretary of the

 

interior pursuant to section 101(a)(2) of the national historic

 

preservation act, 16 USC 470a(a)(2). The lessee shall not resume

 

the suspended site assessment activities before the department's

 

determination is made. The department shall submit the results of

 

the investigation and the department's determination to the

 

Michigan state housing development authority. The lessee shall keep

 

the location of the abandoned property confidential until released

 

to the public by the department. The department may suspend the

 

running of the term of the lease during the suspension of site

 

assessment activities under this subdivision.

 

     (d) Not more than 60 days after removal of a structure, submit

 

a written report to the department that includes both of the

 

following:

 

     (i) A summary of the removal activities, including the date

 

they were completed.

 


     (ii) A description of any mitigation measures.

 

     Sec. 32433. A lessee may request the department to amend the

 

lessee's site assessment permit. The request shall be submitted in

 

writing and shall describe in detail the amendments requested. The

 

request shall be accompanied by a nonrefundable fee of $500.00. The

 

request shall be processed in the same manner and is subject to the

 

same requirements as an application for a site assessment permit

 

except that the department may waive the public notice requirements

 

for minor amendments.

 

     Sec. 32435. (1) A person shall not construct or operate an

 

offshore wind energy facility unless the person has obtained all

 

necessary easements for the offshore wind energy facility.

 

     (2) A lessee shall apply for a utility easement pursuant to

 

subpart 9 of part 21 for an export cable located outside of the

 

leased site.

 

     (3) Easement revenue shall be deposited as provided in section

 

32447.

 

     Sec. 32437. (1) A person shall not construct or operate an

 

offshore wind energy facility except pursuant to the terms of a

 

construction and operations permit. To obtain a construction and

 

operations permit, a lessee shall submit an application to the

 

department on a form provided by the department. The application

 

shall be accompanied by a nonrefundable fee of $10,000.00.

 

     (2) If the lessee requests a preapplication meeting with the

 

department, the department shall meet with the lessee or its

 

representatives to review a proposed offshore wind energy facility

 

or a proposed construction and operations permit application.

 


     (3) An application for a construction and operations permit

 

shall be submitted not more than 4 years after the issuance of the

 

site assessment permit. The department shall grant one 1-year

 

extension of the deadline to submit an application for a

 

construction and operations permit if the lessee submits a written

 

request for the extension that demonstrates in detail that

 

substantial progress has been made to complete site assessment

 

including substantial progress on the installation of monitoring

 

equipment or substantial progress on the completion of studies

 

required under section 32427. If the lessee fails to timely submit

 

an application for a construction and operations permit, the lease

 

is terminated, and the rent payment for the current year of the

 

lease shall not be refunded.

 

     (4) A construction and operations permit application shall

 

include all of the following, utilizing relevant data collected

 

from site assessment activities and other sources:

 

     (a) Scaled drawings that include all of the following

 

elements:

 

     (i) A cross-sectional and plan view drawing of the entire

 

project area prepared by a professional land surveyor or

 

professional engineer. The drawing shall show, with global

 

positioning system coordinates, the proposed surface location of

 

all proposed offshore wind energy facility structures, including,

 

but not limited to, meteorological towers, wind turbine towers,

 

generating facilities, interturbine cables, electric service

 

platforms, and export cables, and the estimated water depth at that

 

location.

 


     (ii) A plan, to scale, that shows the outside limits of the

 

permit and leased site, and the location of all proposed above-

 

water offshore wind energy facility structures in relation to the

 

adjacent shoreline and nearby local units of government, parks,

 

roads, other existing or proposed permitted offshore wind energy

 

facilities, and other physical features.

 

     (b) A narrative description of the proposed objectives,

 

activities, and methods and plan for proposed construction and

 

operation, including plans for any phased development, and schedule

 

of construction activity showing significant milestones leading to

 

the commencement of commercial operations.

 

     (c) Structural and project design, fabrication, and

 

installation information for each type of structure proposed to be

 

permitted and the location of each such structure on the most

 

recent nautical chart issued by the national oceanic and

 

atmospheric administration, United States department of commerce or

 

grid cell map produced by the department.

 

     (d) A report, prepared following consultation with the

 

department, based on the information and data collected in the site

 

assessment permit studies that describes all of the following:

 

     (i) The location and types of competing uses.

 

     (ii) The aquatic environment, including benthic communities, in

 

the waters and on the bottomlands in, on, or over which the

 

applicant proposes to locate any structure, and immediately

 

adjacent areas.

 

     (iii) The cultural, historical, and archaeological sites within

 

the project area.

 


     (iv) The results of all baseline biological surveys conducted

 

under section 32427(5)(c).

 

     (e) A fish and wildlife protection plan that contains, at a

 

minimum, all of the following:

 

     (i) A detailed description of the methods and equipment that

 

will be used for monitoring fish and wildlife behavior and activity

 

in the vicinity of the project.

 

     (ii) A detailed description of how the fish and wildlife

 

monitoring data will be analyzed and provided to the department in

 

electronic format, with specific criteria by which to evaluate

 

adverse effects.

 

     (iii) A detailed implementation schedule, including the

 

frequency and timing of data recovery, maintenance of the

 

monitoring equipment, and quarterly reporting to the department.

 

     (iv) A detailed monitoring schedule that considers lake

 

conditions, seasonal variations in the presence of species, and

 

other pertinent biological factors.

 

     (v) Provisions for identifying and implementing remedial

 

measures if monitoring identifies any adverse effects on fish or

 

wildlife.

 

     (f) A description of the measures the lessee took, or will

 

take, to satisfy the conditions of any lease stipulations related

 

to the proposed activities.

 

     (g) A detailed description of the methods and equipment that

 

will be used to monitor ambient noise levels, electromagnetic

 

fields and noise associated with offshore wind energy facility

 

construction and subsequent operations, and the effectiveness of

 


any devices that are proposed to avoid and minimize the potential

 

for adverse effects from noise or electromagnetic fields, if any.

 

     (h) A pollution prevention plan for lubricants and other

 

chemical products used in the offshore wind energy facility,

 

including all of the following:

 

     (i) An analysis of the use of nontoxic alternatives.

 

     (ii) A list of chemical products to be used.

 

     (iii) The quantity to be used or stored on location.

 

     (iv) The treatment, discharge, or disposal methods to be used.

 

     (v) The name and location of the onshore waste receiving,

 

treatment, or disposal facility.

 

     (vi) How these chemical products will be brought on-site.

 

     (vii) The number of transfers of the chemical products that may

 

take place.

 

     (viii) The quantity of chemical products that will be

 

transferred each time.

 

     (i) A description of any vessels, aircraft, or other vehicles

 

the lessee will use to support the activities and an estimate of

 

the frequency and duration of vehicle traffic.

 

     (j) A decommissioning plan that meets the requirements of a

 

removal plan under section 32427(5)(j).

 

     (k) Information described in section 32427(5)(k) to (u).

 

     Sec. 32439. (1) A construction and operations permit

 

application shall be processed in the same manner and is subject to

 

the same requirements as provided for a site assessment permit

 

application under section 32429(1), (2), (3), (6), and (7).

 

     (2) Before determining whether to approve or disapprove a

 


construction and operations permit application, the department

 

shall hold a public hearing on the application. The hearing shall

 

be held in the county nearest to the parcel for which the permit is

 

sought. The department shall publish a notice of the hearing and

 

comment period in a newspaper of general circulation in that county

 

and send notice by first-class mail to the clerk of each local unit

 

of government with any Great Lakes shoreline not more than 12 miles

 

from the leased site not less than 30 days before the hearing. The

 

department shall also post a notice of the hearing and comment

 

period on its website beginning not less than 30 days before the

 

hearing. The last day of the comment period is 15 days after the

 

hearing. Comments shall be submitted in writing or by electronic

 

mail, except that comments at the hearing may be submitted orally.

 

     (3) A notice under subsection (2) shall include or describe

 

all of the following:

 

     (a) The time, date, place, and purpose of the hearing.

 

     (b) The opportunity to submit comments to the department in

 

writing or by electronic mail at any time not more than 15 days

 

after the hearing, and the postal and electronic mail address for

 

submitting comments.

 

     (4) After the comment period expires, the department shall

 

prepare a summary of the comments received and the department's

 

responses to the comments.

 

     (5) Not more than 45 days after the public hearing under

 

subsection (2), the department shall submit to the chairperson of

 

the advisory council a copy of the construction and operations

 

permit application, a copy or transcript of each public comment

 


received under subsection (2), and a summary of the comments and

 

the department's responses to the comments. Not more than 45 days

 

after the department submits this information to the chairperson of

 

the advisory council, the advisory council shall review the

 

information and submit to the department recommendations regarding

 

approval or disapproval of the construction and operations permit

 

application and the terms and conditions of a permit.

 

     (6) The department shall prepare a summary of the department's

 

responses to the advisory council's recommendations.

 

     (7) If the department approves a construction and operations

 

permit application, the department shall notify the applicant in

 

writing and issue a permit that incorporates the terms and

 

conditions under which the offshore wind energy facility is to be

 

constructed and operated. The terms and conditions shall include,

 

but not be limited to, all of the following:

 

     (a) The requirements of sections 32429(8)(a) and 32445(1).

 

     (b) The wind turbine rotor sweep height of an offshore wind

 

energy facility shall be not less than 75 feet above the water

 

surface.

 

     (c) Where traversing shoreline, export cables shall be buried

 

under the shoreline.

 

     (d) A construction schedule consistent with section 32445.

 

     (8) A construction and operations permit expires upon the

 

earlier of the following:

 

     (a) Issuance of a decommissioning permit.

 

     (b) Termination of the lease.

 

     Sec. 32441. If the department issues a construction and

 


operations permit, the lessee shall do all of the following:

 

     (a) Commence construction by the date given in the

 

construction schedule included as a part of the construction and

 

operations permit, unless the department approves a deviation from

 

the schedule.

 

     (b) Not more than 30 days after completion of installation

 

activities approved in the construction and operations permit,

 

notify the department in writing of the date of completion.

 

     (c) Prepare and submit to the department by November 1 of each

 

year both of the following:

 

     (i) A report as described in section 32431(b).

 

     (ii) An update of the emergency plan described in section 32427

 

(5)(l).

 

     (d) If submerged cultural resources are discovered while

 

conducting construction and operations activities, proceed as

 

provided in section 32431(c).

 

     (e) Not more than 5 business days after commercial operations

 

cease without an approved suspension, notify the department in

 

writing. If commercial operations cease for an indefinite period

 

longer than 6 months, the department, after providing the permittee

 

an opportunity for a contested case hearing under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328, may cancel the lease and the lessee shall initiate the

 

decommissioning process, as set forth in this part.

 

     (f) Initiate the decommissioning process as required in this

 

part upon completion of the commercial operations as authorized in

 

the construction and operations permit.

 


     Sec. 32443. A lessee may request the department to amend the

 

lessee's construction and operations permit. The request shall be

 

submitted in writing and shall describe in detail the amendments

 

requested. The request shall be accompanied by a nonrefundable fee

 

of $500.00. The request shall be processed in the same manner and

 

is subject to the same requirements as an application for a

 

construction and operations permit except that the department may

 

waive the public notice requirements for minor amendments.

 

     Sec. 32445. (1) The lessee shall commence the work authorized

 

in the construction and operations permit not more than 2 years

 

after issuance of the permit and begin commercial operations not

 

more than 4 years after the issuance of the permit.

 

     (2) The department shall amend the construction and operations

 

permit to provide not more than one 1-year extension of the

 

deadline to commence work and not more than two 1-year extensions

 

of the deadline to begin commercial operations. In addition to

 

meeting the requirements of section 32443, to qualify for an

 

extension under this subsection, the lessee shall submit to the

 

department detailed information demonstrating that substantial

 

progress has been made.

 

     (3) If the lessee fails to meet the requirements of subsection

 

(1), subject to any extension under subsection (2), the department

 

shall terminate the lease.

 

     Sec. 32447. (1) Subject to section 32463, the rent for a lease

 

shall be $3.00 per acre per year for the entire leased site unless

 

otherwise provided in the lease. The rent shall be adjusted by the

 

state treasurer in years ending in "0" or "5". The rent adjustment

 


shall be directly proportional to changes in the consumer price

 

index of the United States department of labor, bureau of labor

 

statistics, and other economic indicators.

 

     (2) A lessee shall pay the annual rent not more than 45 days

 

after the lease is issued and then by each subsequent anniversary

 

of the issuance of the lease. A lessee shall continue to make rent

 

payments until decommissioning has been completed pursuant to the

 

terms of the decommissioning permit and approved by the department.

 

     (3) All application fees, nomination fees, bid amounts, rent,

 

and easement revenue received under this part shall be forwarded to

 

the state treasurer for deposit into the land and water management

 

permit fee fund created under section 30113. Upon appropriation,

 

the department shall expend money deposited in the land and water

 

management permit fee fund pursuant to this section to implement

 

this part, including updating, as new information becomes

 

available, the Great Lakes resource mapping system developed in

 

conjunction with the September 1, 2009 "Report of the Great Lakes

 

Wind Council" issued pursuant to Executive Order No. 2009-1.

 

     (4) Not more than 10 days after the commencement or

 

termination of commercial operations, the lessee shall notify the

 

MPSC in writing of the date of commencement or termination. The

 

MPSC shall promptly forward a copy of the notice to the department.

 

     (5) A lessee shall make annual royalty payments of 3% of gross

 

revenue from electricity or other energy product generated or

 

produced by the offshore wind energy facility during the preceding

 

year. Not more than 15 days after each anniversary of the

 

commencement of commercial operations, the lessee shall file with

 


the MPSC documentation the MPSC considers necessary to make a

 

determination of royalties owed for the 1-year period preceding the

 

anniversary date. The MPSC shall determine and notify the lessee

 

and department of the amount of royalties due. The lessee shall pay

 

the royalties to the department not more than 15 days after the

 

lessee receives the notice from the MPSC.

 

     (6) Past due royalty and annual rental payments shall bear

 

interest at the rate determined and applied by the department of

 

treasury from the due date until the date of payment.

 

     (7) The offshore wind energy trust fund is created within the

 

state treasury. Royalty payments under subsection (5) shall be

 

deposited in the fund. 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. Money in the fund at the close of the fiscal year

 

shall remain in the fund and shall not lapse to the general fund.

 

     (8) The department shall be the administrator of the Great

 

Lakes wind energy trust fund for auditing purposes. Money from the

 

fund shall be expended, upon appropriation, only for 1 or more of

 

the following purposes:

 

     (a) Not less than 70% of the money appropriated shall be

 

expended to protect and manage bottomlands, enhance and restore

 

Great Lakes aquatic environment and nearshore habitat, and manage

 

submerged cultural resources. Preference in expenditure of revenue

 

under this subdivision shall be given to activities located not

 

more than 30 miles from the shoreline of a county with shoreline

 


nearest to any particular offshore wind energy facility.

 

     (b) Not less than 23% of the money appropriated shall be

 

deposited in the energy efficiency and renewable energy revolving

 

loan fund created in section 2 of 2009 PA 242, MCL 460.912, or

 

appropriated to the department of energy, labor, and economic

 

growth for grants issued in conformity with the energy efficiency

 

and conservation block grant program created under the energy

 

independence and securitization act of 2007, Public Law 110-140.

 

     (c) Not more than 7% of the money appropriated shall be

 

appropriated to the MPSC and expended for fulfilling its

 

responsibilities under this section or deposited in the land and

 

water management permit fee fund to be expended, upon

 

appropriation, as provided in subsection (3).

 

     (9) For the fiscal year ending September 30, 2011, there is

 

appropriated to the department $200,000.00 to hire 2.0 full-time

 

equated positions to implement this part.

 

     Sec. 32449. (1) A lessee shall maintain financial assurance

 

and a policy of general liability insurance from the commencement

 

of the term of the lease until termination of the lease as provided

 

in section 32465, removal of any permitted structures, and

 

restoration of leased bottomlands and waters to their prelease

 

condition as approved by the department.

 

     (2) Financial assurance under subsection (1) shall be in an

 

amount the department determines to be reasonably necessary to

 

ensure the performance of all of the following:

 

     (a) The terms and conditions in the lease.

 

     (b) Decommissioning.

 


     (c) Necessary environmental protection measures, including

 

potential remediation of any contamination of the air, water, or

 

bottomlands.

 

     (3) The financial assurance shall consist of a performance

 

bond, escrow, cash, or other equivalent security, or any

 

combination thereof, covering 100% of the total required amount.

 

The amount of financial assurance to cover potential liabilities,

 

such as remediation for possible contamination, as opposed to

 

estimated actual liabilities, need not exceed 1% of the cost of the

 

facility. Every 3 years, or more often if the department considers

 

it necessary, a lessee shall adjust the amount of financial

 

assurance so the amount remains consistent with subsection (2). In

 

making this determination, the department shall consider the

 

consumer price index of the United States department of labor,

 

bureau of labor statistics, and other economic indicators, the

 

scope, scale, and location of activities, the stage of the offshore

 

energy facility project, and other relevant factors.

 

     (4) If the department demonstrates to the holder of financial

 

assurance that the lessee has violated the requirements of this

 

part, the holder of the financial assurance shall release the

 

amount of the funds that the department determines is necessary to

 

remedy the noncompliance.

 

     (5) The general liability insurance policy under subsection

 

(1) shall cover bodily injury, property damage, and environmental

 

damage arising from activities under this part in an amount

 

considered reasonable by the department given the scope, scale, and

 

location of the activities. The amount of liability insurance need

 


not exceed 1% of the cost of the offshore wind energy facility.

 

     (6) If a lessee fails to provide or maintain financial

 

assurance or general liability insurance under this section, the

 

department may order the lessee to immediately suspend commercial

 

activities.

 

     Sec. 32451. A lessee shall not assign, in whole or part, a

 

lease or a permit provided for under this part except upon approval

 

of the department. To obtain department approval of an assignment,

 

a lessee shall submit an application to the department on a form

 

provided by the department. A processing fee of $500.00 shall

 

accompany the application. The department shall approve the

 

assignment if the assignee meets all the requirements of this part.

 

The assignor is liable for all obligations that accrued on the

 

lease or assigned portion thereof before the department approves an

 

assignment. The assignee is liable for all obligations that accrue

 

on the lease or assigned portion thereof after the department

 

approves the assignment.

 

     Sec. 32453. (1) A person shall not conduct decommissioning

 

except pursuant to the terms of a decommissioning permit issued by

 

the department. To obtain a decommissioning permit, a lessee shall

 

submit an application to the department on a form provided by the

 

department. The application shall be accompanied by a nonrefundable

 

fee of $5,000.00.

 

     (2) If the lessee requests a preapplication meeting with the

 

department, the department shall meet with the lessee or its

 

representatives to review the proposed decommissioning or

 

decommissioning permit application.

 


     (3) An application for a decommissioning permit shall be

 

submitted by the earlier of the following dates:

 

     (a) 180 days before the termination of all other commercial

 

activities.

 

     (b) 90 days after cancellation, relinquishment, or other

 

termination of the lease.

 

     (4) The decommissioning permit application shall include all

 

of the following:

 

     (a) An updated decommissioning plan, as described in section

 

32437, that reflects state-of-the-art methods for decommissioning

 

and removal at the time those activities are to commence.

 

     (b) Information described in section 32427(5)(k) to (u).

 

     Sec. 32455. (1) A decommissioning permit application shall be

 

processed in the same manner and is subject to the same

 

requirements as provided for a site assessment permit application

 

under section 32429(1), (2), (3), (6), and (7) and a construction

 

and operations permit application under section 32439(2), (3), and

 

(4).

 

     (2) If the department approves a decommissioning permit

 

application, the department shall notify the applicant in writing

 

and issue a permit that incorporates the terms and conditions under

 

which the decommissioning is to be conducted.

 

     (3) A decommissioning permit may authorize a structure that

 

has a continuing beneficial use to remain in place following

 

termination of a lease.

 

     Sec. 32457. (1) Not more than 60 days after the department

 

approves an application for a decommissioning permit, the lessee

 


shall begin decommissioning pursuant to the permit. The lessee

 

shall complete decommissioning not more than 3 years after the

 

issuance of a decommissioning permit.

 

     (2) In conducting decommissioning, the lessee shall comply

 

with section 32431(c) and (d).

 

     Sec. 32459. A lessee may request the department to amend the

 

lessee's decommissioning permit. The request shall be submitted in

 

writing and shall describe in detail the amendments requested. The

 

request shall be accompanied by a nonrefundable fee of $500.00. The

 

request shall be processed in the same manner and is subject to the

 

same requirements as an application for a decommissioning permit

 

except that the department may waive the public notice requirements

 

for minor amendments.

 

     Sec. 32461. (1) Not more frequently than every 5 years, the

 

department may review the leased site to consider whether it is

 

larger than needed to fully develop and operate the offshore wind

 

energy facility in a manner consistent with this part. The

 

department shall notify the lessee in writing if the department

 

proposes to reduce the area of the leased site. The notice shall

 

describe the area proposed to be excluded from the leased site and

 

provide the reasons for the proposal.

 

     (2) Not later than 45 days after the department submits its

 

notice under subsection (1), the lessee may submit to the

 

department in writing a statement of reasons that the lessee needs

 

to retain the area in question to fully develop and operate the

 

offshore wind energy facility in a manner consistent with this

 

part.

 


     (3) Not more than 90 days after the department submits its

 

notice under subsection (1), the department shall determine whether

 

to reduce the leased site, and shall notify the lessee of its

 

decision in writing. If the department determines to reduce the

 

leased site, the notice shall include the department's responses to

 

any statement submitted by the lessee under subsection (2). If the

 

leased site is reduced, rent under the lease shall be reduced

 

proportionately.

 

     Sec. 32463. (1) If requested by the lessee in writing after

 

commencement of commercial operations, the department may extend

 

the term of a lease for 10 or more years. An extension shall not

 

exceed the original lease term unless a longer term is agreed to by

 

the department and lessee. More than 1 extension may be granted.

 

     (2) A request for a lease extension shall be submitted to the

 

department not later than 2 years before the termination date of

 

the lease. The department shall receive comment on the request. The

 

comment process is subject to the same requirements as set forth in

 

section 32429(4) and (5). Not later than 1 year before the

 

termination date of the lease, the department shall approve or

 

disapprove the request or approve the request with modifications.

 

The department shall notify the lessee in writing of the

 

department's approval or disapproval of the request. If the

 

department disapproves the request, the department shall notify the

 

lessee in writing of the reasons for disapproval.

 

     (3) The department may revise rents and operating terms of the

 

lease at the time of extension as a condition of the extension.

 

     (4) For the period the department considers a lessee's request

 


for extension, the lessee shall continue to make all payments in

 

accordance with the original terms and conditions of the lease.

 

     Sec. 32465. (1) The lease terminates on whichever of the

 

following occurs first:

 

     (a) Failure to timely submit an application for a site

 

assessment permit under section 32427(4) or a construction and

 

operations permit under section 32437(3).

 

     (b) Failure to timely provide information necessary to make an

 

application administratively complete or other additional

 

information requested by the department in connection with a site

 

assessment permit application as provided in section 32429(2) or a

 

construction and operations permit application under sections

 

32429(2) and 32439(1).

 

     (c) Disapproval of a site assessment permit application and

 

failure to timely submit necessary revisions under section 32429(7)

 

or disapproval of a construction and operations permit application

 

and failure to timely submit necessary revisions under sections

 

32429(7) and 32439(1).

 

     (d) The expiration of the applicable term of the lease,

 

subject to any extension under section 32463.

 

     (e) Cancellation of the lease in an enforcement action under

 

section 32479.

 

     (f) Completion of decommissioning pursuant to the terms of a

 

decommissioning permit and approval of the decommissioning by the

 

department.

 

     (g) Relinquishment of the lease under section 32467.

 

     (2) If a lease terminates, the lessee shall do all of the

 


following:

 

     (a) Upon termination, make all payments due, including any

 

accrued rentals. The lessee shall make the payments promptly upon

 

termination of a lease as described under subsection (1)(a) to (f).

 

Section 32467 governs payments in the event of relinquishment of a

 

lease as described in subsection (1)(g).

 

     (b) Not more than 180 days after termination, perform

 

outstanding obligations under the lease. This subdivision does not

 

apply to decommissioning obligations.

 

     Sec. 32467. (1) A lessee may not relinquish the lease or a

 

portion of the leased site except as approved by the department. To

 

obtain approval for relinquishment, the lessee shall submit an

 

application with the department on a form provided by the

 

department. The application shall be accompanied by a nonrefundable

 

fee of $500.00.

 

     (2) Effective 30 days after the department receives an

 

application for relinquishment, the application shall be considered

 

to be administratively complete unless the department proceeds as

 

provided under subsection (3).

 

     (3) If, before the expiration of the 30-day period under

 

subsection (1), the department notifies the applicant that the

 

application is not administratively complete, specifying the

 

information necessary to make the application administratively

 

complete, the running of the 30-day period under subsection (1) is

 

tolled until the applicant submits to the department the specified

 

information or fee amount due. The notice shall be given in writing

 

or by electronic mail.

 


     (4) Subject to subsection (5), the department shall approve or

 

disapprove the relinquishment application not more than 30 days

 

after receipt of an administratively complete application.

 

     (5) A relinquishment takes effect on the date the department

 

approves the lessee's application. The department shall not approve

 

the relinquishment of the leased site, or a portion of the leased

 

site, unless the lessee has made all payments due, including any

 

accrued rentals, or a proportional part thereof.

 

     Sec. 32469. (1) The offshore wind energy advisory council is

 

created within the department.

 

     (2) The advisory council shall consist of the following

 

members:

 

     (a) The director of the department of energy, labor, and

 

economic growth or his or her designee.

 

     (b) The director of the department of natural resources and

 

environment or his or her designee.

 

     (c) The director of the department of transportation or his or

 

her designee.

 

     (d) The president of the Michigan strategic fund, or his or

 

her designee.

 

     (e) The chairperson of the MPSC or his or her designee.

 

     (f) The director of the office of the Great Lakes or his or

 

her designee.

 

     (g) One other individual who is a resident of this state and

 

an owner of Great Lakes littoral property in this state, appointed

 

by the governor.

 

     (h) The following members appointed by the senate majority

 


leader, who shall be residents of this state:

 

     (i) One individual representing a statewide environmental

 

organization.

 

     (ii) One individual representing the tourism industry.

 

     (iii) One individual representing the commercial shipping

 

industry.

 

     (iv) One individual representing the charter fishing industry.

 

     (v) One individual representing electric utilities.

 

     (vi) One individual who is an owner of Great Lakes littoral

 

property in this state.

 

     (i) The following members appointed by the speaker of the

 

house of representatives, who shall be residents of this state:

 

     (i) One individual representing electric utilities.

 

     (ii) One individual representing independent electric

 

transmission companies.

 

     (iii) One individual representing the wind energy development

 

industry.

 

     (iv) One individual representing Native American tribal

 

governments.

 

     (v) One individual representing local government officials.

 

     (vi) One individual who is an owner of Great Lakes littoral

 

property in this state.

 

     (3) The members first appointed to the advisory council shall

 

be appointed not more than 30 days after the effective date of this

 

section.

 

     (4) Members of the advisory council, other than ex officio

 

members, shall serve for terms of 3 years or until a successor is

 


appointed, whichever is later, except that the members first

 

appointed under subsection (2)(g), (h)(i) and (ii), and (i)(i) and (ii)

 

shall serve for 1 year, and the members first appointed under

 

subsection (2)(h)(iii) and (iv) and (i)(iii) and (iv) shall serve for 2

 

years.

 

     (5) If a vacancy occurs on the advisory council, the vacancy

 

shall be filled for the unexpired term in the same manner as the

 

original appointment was made.

 

     (6) A member of the advisory council other than an ex officio

 

member may be removed from the advisory council, by the officer who

 

appointed that member, for incompetence, dereliction of duty,

 

malfeasance, misfeasance, or nonfeasance in office, or any other

 

good cause.

 

     (7) The first meeting of the advisory council shall be called

 

by the director of the department or his or her designee. At the

 

first meeting, the advisory council shall elect from among its

 

members a chairperson and other officers as it considers

 

appropriate. After the first meeting, the advisory council shall

 

meet at least quarterly, or more frequently at the call of the

 

chairperson or if requested by 3 or more members.

 

     (8) A majority of the members of the advisory council

 

constitute a quorum for the transaction of business at a meeting of

 

the advisory council. A majority of the members present and serving

 

are required for official action of the advisory council.

 

     (9) The business that the advisory council may perform shall

 

be conducted at a public meeting of the advisory council held in

 

compliance with the open meetings act, 1976 PA 267, MCL 15.261 to

 


15.275.

 

     (10) A writing prepared, owned, used, in the possession of, or

 

retained by the advisory council in the performance of an official

 

function is subject to the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (11) Members of the advisory council shall serve without

 

compensation. However, members of the advisory council may be

 

reimbursed for their actual and necessary expenses incurred in the

 

performance of their official duties as members of the advisory

 

council.

 

     Sec. 32471. (1) Except as provided in subsection (2),

 

information obtained by the department under this part is a public

 

record as provided in the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (2) A person regulated under this part may designate a record,

 

permit application, other information, or a portion of a record,

 

permit application, or other information obtained by the department

 

from that person under this part as being only for the confidential

 

use of the department. The department shall promptly notify the

 

regulated person of a request for public records under section 5 of

 

the freedom of information act, 1976 PA 442, MCL 15.235, the scope

 

of which includes information designated by that person as

 

confidential and of the date the request was received by the

 

department. The person regulated under this part has until 30 days

 

after the receipt of the request by the department to demonstrate

 

to the department that the information designated as confidential

 

should not be disclosed because the information is a trade secret

 


or secret process or is production, commercial, or financial

 

information the disclosure of which would jeopardize the

 

competitive position of the person from whom the information was

 

obtained and make available information not otherwise publicly

 

available. The department shall decide whether to grant or deny the

 

request not later than 35 days after the request was received. The

 

department shall grant the request for the information unless the

 

person regulated under this part makes a satisfactory demonstration

 

to the department that the information should not be disclosed. If

 

the department decides to grant a request, the information

 

requested shall not be released until 3 days have elapsed after the

 

decision is made.

 

     (3) If the department denies the request because the

 

information should not be disclosed, the department shall

 

reconsider the basis for the denial if that information is

 

subsequently requested and at least 3 years have elapsed since the

 

department last considered the basis for a denial of a request for

 

that information.

 

     (4) The department may release any information obtained under

 

this part, including a record, permit application, or other

 

information considered confidential pursuant to subsection (2), to

 

the United States environmental protection agency.

 

     Sec. 32473. The department may promulgate rules necessary to

 

implement this part pursuant to the administrative procedures act

 

of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     Sec. 32475. (1) A person aggrieved by a decision of the

 

department on a person's qualifications to participate in a lease

 


auction or on an application for a lease or permit under this part

 

may request a hearing under chapter 4 of the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.271 to 24.287.

 

     (2) A determination, action, or inaction by the department

 

following the hearing is subject to judicial review as provided in

 

sections 103 to 106 of the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.303 to 24.306.

 

     (3) A determination issued by the MPSC issued under this part

 

is subject to review as provided under section 26 of 1909 PA 300,

 

MCL 462.26.

 

     Sec. 32477. (1) Subject to subsection (2), a party is not

 

liable for any failure or delay in performance under a permit or

 

lease, other than for delay in the payment of money due and payable

 

under this part, to the extent the failure or delay is proximately

 

caused by causes that are beyond that party's reasonable control

 

and that occur without the party's fault or negligence, such as

 

failure of a supplier, subcontractor, and carrier or other party to

 

substantially meet its performance obligations.

 

     (2) Subsection (1) does not apply unless the party claiming

 

nonliability gives the other party written notice, with full

 

details, promptly following the occurrence of the cause relied

 

upon. The deadline for a performance obligation shall be extended

 

for a period equal to the time lost due to any delay so caused.

 

     (3) An extension of a deadline for a performance obligation

 

under this section is in addition to any extension of the deadline

 

otherwise authorized under this part.

 

     Sec. 32479. (1) If a lessee violates this part, the department

 


may issue a violation notice to the lessee at the lessee's last

 

known address.

 

     (2) A violation notice under subsection (1) shall identify the

 

violation and specify how and by what date the violation shall be

 

corrected.

 

     (3) If a lessee under this part fails to take the actions

 

specified by the department in a violation notice by the time

 

specified, the department may assess an administrative fine of not

 

more than $10,000.00 per day for each violation of this part and

 

for each day that the violation continues.

 

     (4) If the department determines that a violation of this part

 

poses an imminent threat of serious or irreparable damage to the

 

environment or natural resources, public health or safety, or

 

private or public property, including, but not limited to, sites,

 

structures, or objects of cultural, historical, or archaeological

 

significance, the department may issue an order directing the

 

lessee to take immediate remedial action pursuant to section 32483

 

to alleviate threats and to abate the violation. The order may

 

direct the lessee to cease operations at the leased site until the

 

department determines that the violation has been resolved.

 

     (5) An order to cease operations under subsection (4) shall

 

set forth what measures the lessee is required to take, including

 

submission of reports to the department, to receive approval to

 

resume activities on the lease. The lessee shall cease activities

 

as specified in the order. The department may authorize certain

 

activities to continue during the period of the order to cease

 

operations.

 


     (6) An order to cease operations remains in effect for the

 

period specified in the order or as otherwise specified by the

 

department. If the department determines that the circumstances

 

giving rise to the order cannot be resolved within a reasonable

 

time period, the department may cancel the lease.

 

     (7) An order to cease operations does not extend the term of

 

the lease. The lessee shall continue to make all required payments

 

on the lease during the period the order is in effect.

 

     (8) If the department determines that there has been a

 

significant, unanticipated adverse effect on the environment,

 

natural resources, or public health or safety, the department shall

 

order the lessee to take remedial action that the department

 

considers necessary to address the adverse effect.

 

     Sec. 32481. If after providing an opportunity for an

 

evidentiary hearing under the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328, the department determines

 

that the lessee has failed to comply with a removal plan under

 

section 32427 approved in a site assessment permit, with a

 

decommissioning permit, or with the requirements of section

 

32465(2)(b), both of the following apply:

 

     (a) The department may take such measures as it considers

 

necessary to initiate and fully implement the removal plan or

 

decommissioning plan or perform outstanding obligations under the

 

lease by drawing on the financial assurance maintained under

 

section 32447.

 

     (b) The lessee remains liable for removal and decommissioning

 

costs and responsible for accidents or damages that might result

 


from such failure.

 

     Sec. 32483. (1) The department may request the department of

 

attorney general to commence a civil action in Ingham county to

 

restrain or correct a violation of this part. The court may issue

 

an order requiring compliance with this part including restoration

 

of the area affected by the violation. A person who violates an

 

order of the court issued under this subsection is subject to a

 

civil fine of not more than $10,000.00 for each day of violation.

 

     (2) In a civil action commenced under subsection (1), the

 

circuit court may, in addition to any other relief granted, assess

 

a civil fine of not more than $10,000.00 per day for each violation

 

of this part and for each day that the violation continues.

 

     Sec. 32485. (1) A person who does any of the following is

 

guilty of a misdemeanor punishable by a fine of not more than

 

$10,000.00 per day for each day of violation:

 

     (a) Discovers abandoned property and, knowing that the

 

property is abandoned property, fails to suspend bottom-disturbing

 

activities or report the abandoned property as required by section

 

32431.

 

     (b) Knowingly makes a false statement, representation, or

 

certification in an application for a lease or permit or in a

 

report required by a lease or permit.

 

     (c) Knowingly renders inaccurate any monitoring device or

 

method required to be maintained by a lease or permit.

 

     (2) A person who commits a violation described in this section

 

a second or subsequent time is guilty of a felony punishable by a

 

fine of not more than $25,000.00 for each day of violation or by

 


imprisonment for not more than 2 years, or by both.

 

     Sec. 32504b. (1) The department may enter into a deed, lease,

 

or agreement with or issue a permit to an approved organization

 

pertaining to lands described in section 32502 for placement and

 

use of 1 or more of the following structures:

 

     (a) Structures to research offshore wind energy development.

 

     (b) Environmental monitoring buoys.

 

     (c) Mooring buoys at shipwreck sites.

 

     (2) All studies, information, and other data collected using

 

structures under subsection (1) shall be made available by the

 

approved organization to any person upon request.

 

     (3) Part 324 does not apply to activities or structures

 

authorized under this section. Activities and structures otherwise

 

regulated by part 324 are not subject to this part.

 

     (4) As used in this section, "approved organization" means a

 

lawful nonprofit entity as approved by the department, a local unit

 

of government, a federal or state agency, or an institution of

 

higher education in this state. Notwithstanding any other provision

 

of this part, for the purposes of this section, an approved

 

organization is not required to be a littoral or riparian

 

landowner.