FY 2011-12 ENVIRONMENTAL QUALITY BUDGET S.B. 176 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: $ 0
FY 2010-11 Year-to-Date Gross Appropriation $395,665,700
Changes from FY 2010-11 Year-to-Date:
  Items Included by the Senate and House
1. Office of Pollution Prevention and Compliance Assistance (OPPCA). The House and Senate reduced funding for this office, including 9.0 FTEs. Pollution prevention and compliance activities would be reduced as a result of this GF/GP reduction. (1,200,000)
2. Administrative Reductions. The House and Senate made various administrative reductions. Savings would primarily be achieved by holding positions vacant. 9.0 FTEs were also eliminated; $1,012,000 of gross savings would is GF/GP. (1,268,500)
3. Air Emissions Fees Increase. The House and Senate included an unspecified increase in air emissions fees which are expected to raise an additional $1.0 million for the program. Additional spending authorization of $840,000 was also included. 840,000
4. Solid Waste Management Fee Increase. The House and Senate report is predicated on raising these fees from 7 cents to 12 cents per cubic yard. This increase is expected to raise $1.9 million. 0
5. Wastewater Operator Certification Exam Fee. The House and Senate included funding from a new fee structure for certification exams. It is estimated that the fee would raise $356,000 and would offset $200,000 in GF/GP currently used for the program. 156,000
6. Fee Sunsets. House and Senate budgets predicated on extending fees which sunset this year. 0
7. Strategic Water Quality Initiatives Fund. The House and Senate included funding for nonpoint source environmental cleanups per PA 232 of 2010. It is estimated that $900,000 in annual debt service would be incurred as a result. 30,000,000
8. Economic Adjustments. DTMB Economics: $137,600 Gross, $7,100 GF/GP. 6,697,200
9. Other Changes. Includes a reduction in excess Federal and restricted fund deducts, money for State site cleanups, and funding for an upgrade of permitting systems. (25,183,100)
Conference Agreement on Items of Difference
10. FTE Reductions. The Senate reduced FTEs by 100.6 department-wide. The Conference increased this number to 115.6. 0
11. GF/GP Reductions. The House included an additional GF/GP reduction of $355,700 to various lines. The Conference did not include this reduction. 0
12. Aquatic Invasive Species Advisory Council. The Senate included a $100 placeholder for this item. The Conference did not include this item. 0
13. Executive Revisions 2012-1 and 2012-3. The Governor released two revisions to the budget; $6.95 million for Brownfields and site reclamation, and $1.8 million for Bureau of Energy systems. The House included the $6.95 million item. The Senate included neither. The Conference included both items. 8,812,700
14. FY 2011-12 One-Time Appropriations. The Conference included $6.0 million GF/GP for an environmental cleanup site in Muskegon.
Total Changes $18,854,300
  FY 2011-12 Conference Report Gross Appropriation $414,520,000
FY 2011-12 ENVIRONMENTAL QUALITY BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:
  Items Included by the Senate and House
1. Aquatic Nuisance Control Program. The House and Senate retained this section which allocates $100,000 for this program. (Sec. 401)
Conference Agreement on Items of Difference
2. Standard Boilerplate Sections. The Conference included several sections that were included in most budgets as part of the target agreement. (Sec. 201, 202, 203, 215, 225, 205, 210, 206, 207, 208, 212, 221, 222, 1001, and 1201)
3. Travel Restrictions. The House retained two current-year sections restricting out-of-State travel (Sec. 209 & 223 of the House bill). The Senate and Conference deleted them.
4. Administrative Rules - Small Businesses. The House retained a section prohibiting the Department from promulgating rules that would have a disproportionate impact on small businesses. The Conference included this item. (Sec. 213)
5. Pending Permits. The House retained a section which considered any permit pending for more than two years to be administratively complete (Sec. 218 of the House bill). The Conference did not include this section.
6. Refined Petroleum Fund - Usage. The Senate retained a section stating legislative intent for RPF usage (Sec. 221 of the Senate bill). The Conference did not include this item.
7. Refined Petroleum Fund - Intent to Repay. The House retained a section stating the Legislature's intent to repay the $70.0M borrowed from the RPF during the FY 06-07 budget resolution. The Conference retained this item. (Sec. 305)
8. Permit Application Status Tracking Tool. The House included a new section requiring the Department to implement a permit tracking tool on the internet. The Conference included this item. (Sec. 227)
9. Customer Satisfaction Evaluation Program. The House included this new section; the Conference retained it. (Sec. 228)
10. Expedited Permitting Program. The House included a new section requiring a report on the specific programs where the expedited permit program could be expanded. The Conference retained this item. (Sec. 229)
11. Tax Exemption Certificates. The Senate included a new section requiring the Department to enter into an MOU with Treasury on tax exemption certificates for air and water pollution control equipment. The Conference included this section. (Sec. 311)
12. Groundwater Dispute Resolution Process. The Senate and Conference retained this section. (Sec. 402)
13. Solid Waste Program Report. The House included this new section which requires a report including long-term funding options, the impact of recycling, and the feasibility of contracting out landfill inspections. The Conference included this item. (Sec. 601)
14. Aquatic Invasive Species Council. The Senate included language requiring the Department to provide funding for this council, provided one is created in statute. The Conference included this item. (Sec. 403)
15. Detailed FTE Report. The House and Conference retained a section requiring this report. (Sec. 223)

Date Completed: 5-23-11 Fiscal Analyst: Josh Sefton This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIdeq_cr.doc