HOUSE BILL No. 4502 April 20, 1999, Introduced by Reps. Switalski, Bogardus, Woodward, Martinez, Lemmons, Jacobs, Thomas, Mans, Baird, Gieleghem, Minore, DeHart, O'Neil and Bovin and referred to the Committee on Conservation and Outdoor Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding sections 17005, 17006, and 17007. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 17005. (1) AN APPLICANT FOR A SCRAP TIRE REIMBURSEMENT 2 GRANT SHALL APPLY ANNUALLY TO THE DEPARTMENT FOR ADVANCE CERTIFI- 3 CATION THAT THE PROPOSED USE OF SCRAP TIRES IN THAT YEAR IS ELI- 4 GIBLE FOR A GRANT. 5 (2) AN APPLICATION FOR ADVANCE CERTIFICATION SHALL BE SUB- 6 MITTED TO THE DEPARTMENT BY MARCH 1 OF THE CALENDAR YEAR FOR 7 WHICH ADVANCE CERTIFICATION IS SOUGHT, OR WITHIN 60 DAYS AFTER 8 THE EFFECTIVE DATE OF THIS SECTION. 9 (3) AN ADVANCE CERTIFICATION ISSUED BY THE DEPARTMENT DOES 10 NOT GUARANTEE THAT THE APPLICANT SHALL RECEIVE A GRANT FOR SCRAP 00970'99 b JCB 2 1 TIRES USED IN A CALENDAR YEAR. AT THE TIME THE APPLICANT SUBMITS 2 A GRANT APPLICATION UNDER SECTION 17006, THE BURDEN OF PROOF 3 SHALL BE ON THE APPLICANT TO DOCUMENT THAT THE USE FOR THE GRANT 4 REQUESTED ACTUALLY TOOK PLACE AND CORRESPONDS TO THE USE 5 DESCRIBED IN THE ADVANCE CERTIFICATION. 6 (4) AN APPLICATION FOR ADVANCE CERTIFICATION SHALL BE MADE 7 ON A FORM PROVIDED BY THE DEPARTMENT AND SHALL INCLUDE THE 8 FOLLOWING: 9 (A) DOCUMENTATION THAT THE APPLICANT IS AN ELIGIBLE END USER 10 OR PROCESSOR OF SCRAP TIRES. 11 (B) A DESCRIPTION OF THE PROPOSED USE OF THE SCRAP TIRES. 12 (C) A DESCRIPTION OF THE PROPOSED SOURCE OF THE SCRAP TIRES, 13 INCLUDING THE PROCEDURES THAT THE APPLICANT WILL USE TO ENSURE 14 THAT AT LEAST 95% OF THE SCRAP TIRES WILL HAVE BEEN GENERATED IN 15 MICHIGAN. 16 (D) AN ESTIMATE OF THE TOTAL NUMBER OF POUNDS OF SCRAP TIRES 17 TO BE USED OR PROCESSED IN THE CALENDAR YEAR, INCLUDING THE PRO- 18 CEDURES THAT THE APPLICANT WILL USE TO DOCUMENT THE TOTAL NUMBER 19 OF POUNDS USED OR PROCESSED. 20 (E) OTHER INFORMATION REQUESTED BY THE DEPARTMENT TO ESTAB- 21 LISH ELIGIBILITY. 22 (5) WITHIN 30 DAYS OF RECEIPT OF AN APPLICATION FOR ADVANCE 23 CERTIFICATION, THE DEPARTMENT MAY REQUEST ANY ADDITIONAL INFORMA- 24 TION NEEDED TO COMPLETE THE APPLICATION. AN APPLICATION IS NOT 25 COMPLETE UNTIL THE ADDITIONAL INFORMATION REQUESTED BY THE 26 DEPARTMENT HAS BEEN RECEIVED. BEFORE AN ADVANCE CERTIFICATION IS 00970'99 b 3 1 ISSUED, THE APPLICANT SHALL ESTABLISH TO THE DEPARTMENT'S 2 SATISFACTION ALL OF THE FOLLOWING: 3 (A) THAT THE APPLICANT IS AN ELIGIBLE END USER OR 4 PROCESSOR. 5 (B) THAT THE USE BEING PROPOSED IS AN ELIGIBLE USE UNDER 6 SECTION 17004. 7 (C) THAT THE APPLICANT WILL BE ABLE TO DOCUMENT THAT AT 8 LEAST 95% OF THE SCRAP TIRES USED WERE GENERATED IN MICHIGAN. 9 (D) THAT THE APPLICANT WILL BE ABLE TO DOCUMENT THE NUMBER 10 OF POUNDS OF SCRAP TIRES TO BE USED OR PROCESSED. 11 (6) IF THE DEPARTMENT DETERMINES THAT THE APPLICANT FOR 12 ADVANCE CERTIFICATION IS ELIGIBLE, THE DEPARTMENT SHALL ISSUE AN 13 ADVANCE CERTIFICATION WITHIN 60 DAYS OF RECEIPT OF A COMPLETE 14 APPLICATION. 15 (7) TO ENSURE THAT A USE CONTINUES TO BE ELIGIBLE FOR A 16 GRANT, THE DEPARTMENT MAY REQUIRE AN APPLICANT WHO HAS RECEIVED 17 ADVANCE CERTIFICATION TO RESUBMIT AN APPLICATION FOR ADVANCE CER- 18 TIFICATION DURING THE CALENDAR YEAR. 19 SEC. 17006. (1) AN APPLICATION FOR A SCRAP TIRE REIMBURSE- 20 MENT GRANT SHALL NOT BE APPROVED UNLESS THE APPLICANT HAS 21 RECEIVED AN ADVANCE CERTIFICATION FROM THE DEPARTMENT UNDER SEC- 22 TION 17005. AN APPLICATION FOR A GRANT SHALL BE SUBMITTED TO THE 23 DEPARTMENT BY MARCH 1 OF THE CALENDAR YEAR FOLLOWING THE CALENDAR 24 YEAR IN WHICH THE TIRES WERE USED. 25 (2) AN APPLICATION FOR A GRANT SHALL BE MADE ON A FORM PRO- 26 VIDED BY THE DEPARTMENT AND SHALL CONTAIN ALL OF THE FOLLOWING: 00970'99 b 4 1 (A) DOCUMENTATION ACCEPTABLE TO THE DEPARTMENT OF THE NET 2 POUNDS OF SCRAP TIRES PROCESSED AND USED AS FOLLOWS: 3 (i) FOR TIRE-DERIVED FUEL, RECEIPTS SHOWING TONS OF 4 TIRE-DERIVED FUEL PURCHASED OR USED. 5 (ii) FOR INCINERATION OF WHOLE TIRES PRODUCING PROCESS HEAT, 6 STEAM, OR ELECTRICITY, RECORDS SHOWING NET TONS OF SCRAP TIRES 7 COMBUSTED. 8 (iii) FOR PYROLYSIS PLANTS PRODUCING ELECTRICITY OR PROCESS 9 HEAT OR STEAM, BILLINGS SHOWING SALES OF KILOWATT HOURS OR TONS 10 OF STEAM PRODUCED BY THE TIRE PYROLYSIS, CALCULATIONS CERTIFIED 11 BY A LICENSED PROFESSIONAL ENGINEER SHOWING HOW MANY NET POUNDS 12 OF SCRAP TIRES WERE REQUIRED TO GENERATE THAT AMOUNT OF ENERGY, 13 AND RECEIPTS OR BILLS OF LADING FOR THE NUMBER OF SCRAP TIRES 14 ACTUALLY USED TO PRODUCE THE ENERGY. 15 (iv) FOR PYROLYSIS TECHNOLOGIES PRODUCING COMBUSTIBLE HYDRO- 16 CARBONS AND OTHER SALABLE PRODUCTS, BILLINGS TO CUSTOMERS SHOWING 17 AMOUNTS OF PYROLYSIS DERIVED PRODUCTS SOLD IN GALLONS, POUNDS, OR 18 OTHER APPROPRIATE UNITS WITH CALCULATIONS CERTIFIED BY A LICENSED 19 PROFESSIONAL ENGINEER SHOWING THE NUMBER OF NET POUNDS OF SCRAP 20 TIRES INCLUDING EMBEDDED ENERGY, USED TO PRODUCE THOSE PRODUCTS. 21 (v) FOR END USERS OF TIRE STRIPS, CHUNKS, RUBBER CHIPS, 22 CRUMB, AND THE LIKE IN THE MANUFACTURE OF ANOTHER PRODUCT, BILL- 23 INGS TO PURCHASERS FOR THE PRODUCT SOLD, SHOWING NET POUNDS OF 24 SCRAP TIRES USED TO MANUFACTURE THE AMOUNT OF PRODUCT SOLD. 25 (vi) FOR END USERS OF TIRE CHIPS IN RUBBERIZED ASPHALT, OR 26 AS ROADBED MATERIAL, DRIVEWAY COVER, AND OTHER HIGHWAY 00970'99 b 5 1 IMPROVEMENTS, BILLINGS OR RECEIPTS SHOWING THE NET POUNDS OF 2 SCRAP TIRES USED. 3 (vii) FOR PROCESSORS OF SCRAP TIRES, RECEIPTS SHOWING TOTAL 4 TONS OR NUMBERS OF SCRAP TIRES RECEIVED AND PROCESSED AND THEIR 5 ORIGIN AND TOTAL TONS OF SCRAP TIRES USED BY ELIGIBLE END USERS 6 WHO BOUGHT OR ACCEPTED THE SCRAP TIRES. 7 (B) PROVIDE ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT 8 NECESSARY TO DETERMINE WHETHER THE PROPOSED USE IS IN ACCORDANCE 9 WITH THIS PART AND THE RULES PROMULGATED UNDER THIS PART. 10 (3) WITHIN 30 DAYS OF RECEIPT OF A GRANT APPLICATION, THE 11 DEPARTMENT MAY REQUIRE THAT ADDITIONAL INFORMATION BE SUPPLIED BY 12 THE APPLICANT TO COMPLETE THE APPLICATION. THE GRANT APPLICATION 13 IS NOT COMPLETE UNTIL THE ADDITIONAL INFORMATION HAS BEEN 14 RECEIVED BY THE DEPARTMENT. 15 (4) BY JULY 1 EACH YEAR, THE DEPARTMENT SHALL CALCULATE THE 16 TOTAL DOLLAR AMOUNT OF ELIGIBLE REIMBURSEMENT REQUESTED BY GRANT 17 APPLICANTS AT $.01 PER POUND AND SHALL MAKE PAYMENT IN THAT 18 AMOUNT TO THE APPLICANT TO THE EXTENT THAT FUNDS ARE AVAILABLE 19 FOR THAT PURPOSE. IF A SUFFICIENT AMOUNT OF MONEY IS NOT AVAIL- 20 ABLE TO ISSUE GRANTS AT THIS LEVEL, THE DEPARTMENT SHALL REDUCE 21 THE AMOUNT OF PAYMENT FOR EACH GRANT PROPORTIONATLY. 22 (5) AN APPLICANT FOR A GRANT IS SUBJECT TO AUDIT BY THE 23 DEPARTMENT AND SHALL ALLOW THE DEPARTMENT ACCESS TO ALL RECORDS 24 DURING NORMAL BUSINESS HOURS FOR THE PURPOSE OF DETERMINING COM- 25 PLIANCE WITH THIS PART FOR A PERIOD OF 3 YEARS FOLLOWING RECEIPT 26 OF A GRANT. 00970'99 b 6 1 SEC. 17007. (1) THE SCRAP TIRE RECOVERY FUND IS CREATED 2 WITHIN THE STATE TREASURY. 3 (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS 4 FROM ANY SOURCE FOR DEPOSIT INTO THE FUND. THE STATE TREASURER 5 SHALL DIRECT THE INVESTMENT OF THE FUND. THE STATE TREASURER 6 SHALL CREDIT TO THE FUND INTEREST AND EARNINGS FROM FUND 7 INVESTMENTS. 8 (3) MONEY IN THE FUND AT THE CLOSE OF THE FISCAL YEAR SHALL 9 REMAIN IN THE FUND AND SHALL NOT LAPSE TO THE GENERAL FUND. 10 (4) THE DEPARTMENT SHALL EXPEND MONEY FROM THE FUND, UPON 11 APPROPRIATION, ONLY FOR SCRAP TIRE REIMBURSEMENT GRANTS UNDER 12 THIS PART. 13 Enacting section 1. This amendatory act does not take 14 effect unless Senate Bill No. __________ or House Bill 15 No. __________ (request no. 00970'99) of the 90th Legislature is 16 enacted into law. 00970'99 b Final page. JCB