February 14, 2012, Introduced by Senators MEEKHOF, CASPERSON, GREEN, PROOS, COLBECK, JONES, MARLEAU and JANSEN and referred to the Committee on Natural Resources, Environment and Great Lakes.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding part 14.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 14 ENVIRONMENTAL LEADERS
Sec. 1401. As used in this part:
(a) "Applicable environmental requirement" means an applicable
federal environmental requirement, an applicable state
environmental requirement, or an environmental requirement
established by a local unit of government.
(b) "Applicable federal environmental requirement" means any
of the following:
(i) The federal water pollution control act, 33 USC 1251 to
(ii) The clean air act, 42 USC 7401 to 7671q.
(iii) The resource conservation and recovery act of 1976, 42 USC
6901 to 6992k.
(iv) The comprehensive environmental response, compensation,
and liability act of 1980, 42 USC 9601 to 9675.
(c) "Applicable state environmental requirement" means any of
the following or a rule promulgated or permit, order, or other
legally binding document issued under any of the following:
(i) Article II or chapter 1 or 3 of article III.
(ii) The safe drinking water act, 1976 PA 399, MCL 325.1001 to
(iii) Part 135 or 138 of the public health code, 1978 PA 368,
MCL 333.13501 to 333.13536 and 333.13801 to 333.13831.
(d) "Certified", in reference to a statement, means that the
statement is signed by an authorized official of the operator who
attests that he or she has made reasonable inquiry into the basis
for the statement and that it is true and correct to the best of
the official's knowledge and belief.
(e) "Department" means the department of environmental
(f) "Director" means the director of the department or his or
(g) "Environmental leader" means a person designated by the
department as operating an establishment at which the person has
demonstrated environmental stewardship and a strong environmental
ethic by meeting the criteria in this part.
(h) "Environmental management system" means the part of an
overall management system that addresses environmental concerns
through allocating resources, assigning responsibilities, and
evaluating practices, procedures, and processes to achieve sound
(i) "Establishment" means 1 of the following that is situated
in this state and is subject to an applicable state environmental
requirement or applicable federal environmental requirement:
(i) A source as defined in section 5501.
(ii) A public institution.
(iii) A municipal facility.
(iv) A commercial, industrial, or other business facility.
Sec. 1403. As used in this part:
(a) "ISO 14001:2004" means the standard adopted by the
international organization for standardization to prescribe uniform
requirements for the purpose of certification or registration of an
environmental management system.
(b) "Pollution prevention" means eliminating or minimizing the
initial generation of waste at the source, reuse of waste, or
utilizing environmentally sound on-site or off-site recycling.
Waste treatment, release, or disposal is not pollution prevention.
(c) "Supplemental environmental project" means an
environmentally beneficial project that an alleged violator agrees
to undertake in settlement of an enforcement action, but which the
alleged violator is not otherwise legally required to undertake.
(d) "Violation notice" means a written notice or formal
enforcement action by the department, the United States
environmental protection agency, or the enforcing agency of a local
unit of government, as applicable, in response to a violation of an
applicable environmental requirement. A voluntary disclosure made
under part 148 does not constitute a violation notice.
(e) "Waste" means any environmental pollutant, waste,
discharge, or emission, regardless of how it is regulated and
regardless of whether it is released to the general environment or
the workplace environment.
Sec. 1405. To obtain an environmental leader designation with
respect to an establishment and the benefits described in section
1421, the operator shall meet the qualifications set forth in
sections 1407 to 1411 and submit an application under section 1413.
Sec. 1407. (1) To qualify for an environmental leader
designation with respect to an establishment, the operator shall
not be subject to any of the following with respect to the
establishment at any time beginning 3 years before the application
(a) Conviction of a criminal violation of an applicable state
(b) Assessment by a court of appropriate jurisdiction, of a
civil fine, penalty, or damages of $10,000.00 or more for violation
of an applicable state environmental requirement.
(c) A determination, by a court of appropriate jurisdiction,
of responsibility for an illegal action that substantially
endangered the public health, safety, or welfare or the
(d) Assessment, by order of the department, a judicial consent
decree, or an administrative consent order, of a fine or damages of
$32,500.00 or more, excluding the cost of any supplemental
environmental project used to offset a fine, for a violation of an
applicable state environmental requirement.
(2) To qualify for an environmental leader designation with
respect to an establishment, the operator shall address any
outstanding violation that is cited in a violation notice
pertaining to that establishment and that, as determined by the
department, substantially endangers the public health, safety, or
welfare or the environment by doing 1 or more of the following:
(a) Promptly resolving the violation.
(b) Demonstrating to the department, the United States
environmental protection agency, or the local enforcing agency that
issued the violation notice that the violation did not occur.
(c) Adhering to a compliance schedule that is acceptable to
the department, the United States environmental protection agency,
or the local enforcing agency that issued the violation notice, to
correct the violation.
(3) If an establishment obtains a new operator, the director
may choose to consider the environmental record of only the new
operator in determining whether the requirements of this section
Sec. 1409. To qualify for an environmental leader designation
with respect to an establishment, the operator shall meet 1 of the
following environmental management system requirements:
(a) Obtain and operate the establishment in accordance with
registration or certification under an environmental management
standard, such as ISO 14001:2004, that is approved by the director.
(b) Develop, implement, and maintain a written environmental
management system that is consistent with the requirements of ISO
14001:2004 and appropriate for the nature, scale, and potential
environmental impact of the operation at the establishment.
(c) Adopt and maintain an environmental management system,
approved by the director, applicable to a specific group or
classification of establishments that includes that establishment.
The environmental management system shall be consistent with the
requirements of ISO 14001:2004 and be appropriate for the nature,
scale, and potential environmental impact of the operation.
Sec. 1411. To qualify for an environmental leader designation
with respect to an establishment, the operator shall do both of the
(a) Adopt and maintain a written environmental policy, signed
by an authorized official of the operator, that promotes pollution
(b) Establish and maintain a program specific for that
establishment under which the operator does all of the following:
(i) Posts at the establishment the environmental policy
required in subdivision (a).
(ii) Conducts periodic assessments that identify opportunities
for pollution prevention.
(iii) Establishes goals for reducing or preventing pollution,
indicating the types of pollution, whether each pollutant would
affect the air, water, or land, pollution prevention or reduction
measures to be undertaken, and projected time frames.
(iv) Prepares and maintains reports to demonstrate progress
toward attaining the goals established under subparagraph (iii).
(v) Provides for the exchange of information concerning
pollution prevention activities, such as any of the following:
(A) Attending or sponsoring workshops.
(B) Assisting in the development and dissemination of case
(C) Establishing pollution prevention supplier networks.
(D) Providing the department with pollution prevention
information for possible publication.
Sec. 1413. (1) To obtain an environmental leader designation
with respect to an establishment, the operator of the establishment
shall submit an application to the department. The application
shall be submitted on a form provided by the department, together
with all of the following:
(a) A certified statement that the applicant meets the
requirements of sections 1407, 1409, and 1411.
(b) Information demonstrating the applicant's compliance with
section 1409, including a detailed summary of each element of the
environmental management system.
(c) Information demonstrating the applicant's compliance with
section 1411, including a copy of the applicant's environmental
(d) A combined list of the significant goals established in
the environmental management system and the pollution prevention
(e) A list of any criminal convictions or any civil fines,
penalties, or damages assessed relative to applicable federal
environmental requirements arising out of operations at the
establishment during the past 3 years.
(f) If the operator is designated as an environmental leader
with respect to that establishment when the application is filed,
the latest annual report required under section 1419.
(2) The department shall determine whether the application is
administratively complete within 14 days after receipt of the
(3) If the application is administratively complete, the
department shall publish in the department calendar and post on its
website a notice of receipt of the application and related
documentation and of the availability of the application and
related documentation for public review and comment. The notice
shall include the department's electronic mail and postal mailing
addresses for receipt of comments. Comments shall be received for a
period of at least 30 days after notice is given under this
(4) Within 90 days after receipt of an administratively
complete application for an environmental leader designation,
unless an extension of time is requested by the applicant, the
director shall approve or disapprove the application and notify the
applicant. The director shall approve the application if the
application meets the requirements of this part. Otherwise, the
director shall disapprove the application. A notification of
disapproval shall include the specific reasons for the disapproval.
(5) If the application is disapproved, the unsuccessful
applicant may reapply for an environmental leader designation at
(6) If a document otherwise required to be submitted to the
department with an application under this section or an annual
report under section 1419 is already in the possession of the
department, the application or annual report may incorporate the
document by reference without including a copy of the document.
Sec. 1415. The term of an environmental leader designation is
2 years. However, if the operator was certified under ISO
14001:2004 when the environmental leader designation was granted,
the term of the environmental leader designation is 3 years.
Sec. 1417. (1) The director shall terminate an operator's
environmental leader designation with respect to an establishment
if the director, after notice and an opportunity for an evidentiary
hearing under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328, determines that the operator does not
meet applicable requirements of section 1407, 1409, or 1411.
(2) The director shall advise an operator of the director's
intent to terminate the person's environmental leader designation
not less than 30 days before terminating the designation.
(3) A person operating an establishment may reapply for
environmental leader designation at any time.
Sec. 1419. An environmental leader shall submit an annual
report not later than 60 days before the annual anniversary date of
the current environmental leader designation. The annual report
shall do all of the following:
(a) Summarize the activities undertaken over the past year to
do the following:
(i) Identify and report on implementation of standardized
pollution prevention measures consistent with section 1409, on a
form provided by the department.
(ii) Set, revise, and attain objectives and implement measures
in the environmental leader's environmental management system and
pollution prevention programs.
(b) Include a statement by a responsible official that the
environmental leader is in compliance with sections 1407, 1409, and
Sec. 1421. (1) If the operator of an establishment is an
environmental leader with respect to that establishment, all of the
(a) The department shall give the operator priority over
persons that are not environmental leaders in all of the following:
(i) Compliance assistance programs applicable to the
establishment, such as the retired engineers technical assistance
program created in section 14511.
(ii) Processing permit or operating license renewal
applications for the establishment.
(b) The department shall provide the environmental leader with
free training on performing environmental audits under part 148.
(c) The term of a permit issued by the department for the
establishment shall be twice the term that would otherwise apply.
(d) The operator shall receive a preference for state
purchases as provided in section 261 of the management and budget
act, 1984 PA 431, MCL 18.1261.
(e) The operator shall receive a preference for state grants
and loans related to operations at that establishment.
(f) The operator may utilize establishment-wide applicable
limitations and interline averaging or trading programs to the
extent allowed by federal and state rules to maintain overall
emissions levels and environmental discharges if the emissions or
discharges remain within permitted and allowed rates for that
establishment and were previously determined to be acceptable
through permitting or other regulatory actions.
(g) The operator qualifies for any additional environmental
leader benefits for the establishment set forth in rules
promulgated under any of the following:
(i) Article II and chapters 1 and 3 of article III.
(ii) The safe drinking water act, 1976 PA 399, MCL 325.1001 to
(iii) Parts 135 and 138 of the public health code, 1978 PA 368,
MCL 333.13501 to 333.13536 and 333.13801 to 333.13831.
(h) The department shall conduct routine inspections of the
establishment half as frequently as the inspections would be
conducted if the operator were not an environmental leader.
(i) The department shall give the operator at least 72 hours'
advance notice of any routine inspection of the establishment.
(j) During the 1-year period commencing on the date of the
initial designation of the operator as an environmental leader, the
department shall waive 15% of the total of all permit, license, or
other fees that the operator would otherwise be required to pay the
department with respect to operations at the establishment.
(k) The operator is not responsible for damages to natural
resources resulting from a violation of an applicable state
environmental requirement or applicable federal environmental
requirement at the establishment unless the operator's
responsibility is established by a preponderance of the evidence.
(l) Subject to subsection (2), the operator is not subject to a
civil fine for a violation of applicable state environmental
requirements at the establishment if all of the following
conditions are met:
(i) The operator acted promptly to correct the violation after
(ii) The operator reported the violation to the department
within 24 hours after the discovery or within any shorter time
period otherwise required by law.
(2) Subsection (1)(l) does not apply if 1 or more of the
following are established by clear and convincing evidence:
(a) The actions of the operator pose or posed a substantial
endangerment to the public health, safety, or welfare.
(b) The violation was intentional or occurred as the result of
the operator's gross negligence.
Sec. 1423. Upon termination of an environmental leader
designation with respect to an establishment, all benefits provided
to the former environmental leader under section 1421 for that
Sec. 1425. The department shall maintain a copy of ISO
14001:2004 available for inspection at the department's
headquarters in Lansing. Upon request, the department shall provide
information on how to purchase a copy of ISO 14001:2004 from the
American national standards institute.
Sec. 1427. The department shall not process an application or
renewal request for a clean corporate citizen designation under R
324.1501 to R 324.1511 of the Michigan administrative code
submitted on or after the effective date of the 2012 amendatory act
that added this section. A clean corporate citizen designation
shall be considered to be an environmental leader designation for
the purposes of this part for the duration of the term of the clean
corporate citizen designation.
Sec. 1429. This part shall not be construed in a manner that
conflicts with or authorizes any violation of state or federal law.