March 24, 2005, Introduced by Senators TOY, GARCIA, BIRKHOLZ, HARDIMAN, GILBERT, BISHOP, SANBORN, ALLEN, CROPSEY, GOSCHKA, HAMMERSTROM, SIKKEMA, KUIPERS, JOHNSON and JELINEK and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
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. CLEAN CORPORATE CITIZENS
Sec. 1401. As used in this part:
(a) "Applicable environmental requirements" means any of the
following or any rules promulgated or permits, orders, or other
legally binding documents issued 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
325.1023.
(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.
(b) "Clean corporate citizen" means a person who operates an
establishment that has demonstrated environmental stewardship and a
strong environmental ethic by voluntarily meeting the criteria set
forth in this part.
(c) "Department" means the department of environmental
quality.
(d) "Director" means the director of the department of
environmental quality or his or her designee.
(e) "Environmental management system" means the part of an
overall management system that addresses environmental concerns
through the allocation of resources, assignment of
responsibilities, and ongoing evaluation of practices, procedures,
and processes to achieve sound environmental performance.
(f) "Environmental medium" means the air, water, or land that
is impacted, or would have been impacted, by a waste.
(g) "Establishment" means any of the following that operates
in accordance with or under the jurisdiction of applicable
environmental requirements:
(i) A stationary source.
(ii) A location.
(iii) A public institution.
(iv) A municipal, commercial, industrial, or other business
facility.
Sec. 1403. As used in this part:
(a) "ISO 14001" means a 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 or utilizing
environmentally sound on-site and off-site reuse or recycling.
Waste treatment, release, or disposal is not pollution prevention.
(c) "Responsible official" means 1 of the following
individuals who, on behalf of an applicant for a clean corporate
citizen designation, has the authority to sign and certify to the
truth, accuracy, and completeness of the application:
(i) For a corporation, the president, secretary, or
treasurer, a vice-president who is in charge of a principal business function, or any other person who performs similar policy or decision-making functions for the corporation. The person identified in the preceding sentence may appoint another person as his or her authorized representative under either of the following circumstances: (A) The representative is responsible for the overall operation of 1 or more manufacturing, production, or operating facilities applying for or subject to a permit and the facilities either employ more than 250 persons or have gross annual sales or expenditures of more than $25,000,000.00. (B) The representative has responsibilities for the overall operation of a source and is approved in advance by the department. A responsible official shall submit a written request for approval from the department to designate an authorized representative pursuant to this sub-subparagraph. The department shall respond, in writing, within 30 days of receipt of the request. (ii) For a partnership or sole proprietorship, a general
partner or the proprietor. (iii) For a county, city, village, township, state, federal,
or other public agency, either a principal executive officer or ranking elected official. For this purpose, a principal executive officer includes the chief executive officer who has responsibility for the overall operations of a principal geographic unit of the agency. (iv) For affected sources under title IV of the clean air act
amendments of 1990, 42 USC 7651 to 7651o, the designated representative as defined in 42 USC 7651a.
(d) "Violation notice" means any written notice or formal
enforcement action by the department in response to a violation of
an applicable environmental requirement. Voluntary disclosures made
under part 148 do not constitute a violation notice.
(e) "Waste" means any material, energy, or other resource that
is not incorporated into product, such as surplus, obsolete, off-
specification, contaminated, or unused material, and includes, but
is not limited to, all of the following:
(i) Air emissions.
(ii) Water discharges.
(iii) Hazardous waste.
(iv) Solid waste.
Sec. 1405. (1) To qualify for clean corporate citizen
designation for a single establishment operated in this state, a
person shall meet the requirements of this section and sections
1407 to 1411 and voluntarily submit an application under section
1413. The benefits of clean corporate citizen designation are
identified in section 1417.
(2) An establishment does not qualify for clean corporate
citizen designation if the establishment has been subject to any of
the following:
(a) Conviction, within 10 years before filing the initial
clean corporate citizen application, of a criminal violation of
applicable environmental requirements.
(b) Assessment by a court of appropriate jurisdiction, within
3 years before filing the initial clean corporate citizen
application, of a civil fine, penalty, or damages of $10,000.00 or
more for violation of applicable environmental requirements.
(c) A determination, by a court of appropriate jurisdiction,
within 10 years before filing the initial clean corporate citizen
application, of responsibility for an illegal action that caused
substantial endangerment to the public health, safety, or welfare
or to the environment.
(d) Assessment by final department action, within 3 years
before filing the initial clean corporate citizen application, of
an administrative fine of $25,000.00 or more for a violation of
applicable environmental requirements.
Sec. 1407. (1) A clean corporate citizen shall meet the
environment management system requirements of subsection (2), (3),
or (4).
(2) Subject to subsection (1), the clean corporate citizen may
obtain and operate in accordance with registration or certification
under an environmental management standard, such as ISO 14001, that
is approved by the director.
(3) Subject to subsection (1), the clean corporate citizen may
develop and maintain a written environmental management system that
is appropriate to the nature, scale, and potential environmental
impact of the operation and that requires the clean corporate
citizen to do all of the following:
(a) Adopt an environmental policy approved by the responsible
official or operate under an adopted corporate environmental
policy. The environmental policy shall do all of the following:
(i) Demonstrate a high level of commitment to environmental
management through the establishment of guiding principles.
(ii) Articulate the clean corporate citizen's mission and
values.
(iii) Emphasize continuous improvement.
(iv) Promote pollution prevention.
(v) Acknowledge the importance of communication with the
public.
(vi) Emphasize compliance with relevant environmental laws and
regulations.
(vii) Recognize that every individual at the establishment can
contribute to environmental improvement.
(b) Establish and maintain an environmental program and
procedures that do both of the following:
(i) Identify the environmental implications of the clean
corporate citizen's activities, products, and services over which
the clean corporate citizen can be expected to have an influence;
determine the activities, products, or services that have or can
have significant impacts on the environment; and ensure that the
impacts and opportunities for environmental improvement are
considered in setting the clean corporate citizen's environmental
objectives.
(ii) Develop and implement environmental objectives and targets
within each organizational level of the establishment.
(c) Establish a procedure to provide for regular voluntary
environmental self-audits and ensure that there is an effective
mechanism in place to promptly and adequately respond to and
address any violations of applicable environmental requirements.
(d) Identify specific operations and activities that have
significant environmental impact or the potential for significant
environmental impact, and have procedures in place that do all of
the following:
(i) Monitor the operations and activities.
(ii) Ensure that the operations and activities remain within
acceptable parameters.
(iii) Implement prompt correction if a deviation occurs.
(iv) Systematically review records and report on
environmentally-related actions relative to the operations and
activities.
(e) Establish and maintain reporting and record-keeping
procedures to document the environmental status of all operations
and activities.
(f) Establish and maintain procedures to identify and track
the environmental training needs of all personnel who have
responsibility or authority over activities that have significant
environmental impact or the potential for significant environmental
impact.
(g) Establish and maintain procedures to respond to and
report, as appropriate, accidents, malfunctions, spills, upsets,
and other emergency situations; to mitigate any associated
environmental impacts; and to provide for a review of the
procedures after the occurrence of an accident or emergency.
(h) Define the authority, responsibility, and methods for
auditing and correcting nonconformance with the procedures set
forth in the environmental management system.
(i) Develop and maintain procedures for internal communication
about the environmental management system and environmental issues
between personnel across functional and organizational levels.
(j) Establish and maintain procedures for effectively
communicating information on environmental issues and the
environmental management system to the public, including the local
community and environmental interest groups, in a manner that
facilitates and encourages public understanding and dialogue on
environmental issues.
(4) Subject to subsection (1), the clean corporate citizen may
adopt and maintain an environmental management system, approved by
the director, applicable to a specific group or classification of
establishments. An environmental management system developed under
this subsection shall, at a minimum, meet all of the requirements
of subsection (3).
Sec. 1409. (1) A clean corporate citizen shall do both of the
following:
(a) Adopt, in the form of a written policy, a philosophy of
pollution prevention that promotes all of the following:
(i) The elimination or reduction of waste at the source of
generation.
(ii) The reuse of waste, including the purchasing of recycled
materials.
(iii) Environmentally sound on-site and off-site recycling.
(b) Establish and maintain an establishment-specific pollution
prevention program under which the clean corporate citizen does all
of the following:
(i) Adopts and posts a pollution prevention policy, as required
in subdivision (a), that is signed by a responsible official.
(ii) Conducts periodic pollution prevention assessments that
identify opportunities for reuse, recycling, and eliminating waste
at the source.
(iii) Establishes pollution prevention goals that specify the
environmental media and types of pollution to be prevented or
reduced, implementation activities, and projected time frames.
(iv) Records and maintains reports to demonstrate progress on
pollution prevention goal implementation.
(v) Encourages efforts to exchange pollution prevention
technologies, such as any of the following:
(A) Attending or sponsoring workshops.
(B) Developing case studies.
(C) Establishing pollution prevention supplier networks.
(D) Providing the department with pollution prevention
information for possible publication and dissemination.
(2) A clean corporate citizen may satisfy the requirements of
subsection (1)(b) through formal participation and by being a
member in good standing in a recognized department pollution
prevention program.
Sec. 1411. (1) A clean corporate citizen shall satisfy all of
the following requirements:
(a) Provide to the department, as part of the clean corporate
citizen application, a statement signed by a responsible official
that he or she has reviewed the clean corporate citizen's
compliance record and that, to the best of his or her knowledge,
the clean corporate citizen is in compliance with all applicable
environmental requirements and has no outstanding unresolved past
or current violations that have not been corrected or, in the case
of renewal of clean corporate citizen designation, resolved by the
clean corporate citizen's adherence to a binding compliance
schedule to abate the violations.
(b) Address any violation cited in a violation notice by
resolving the violation, making a showing to the director that the
violation did not occur, or in the case of renewal of clean
corporate citizen designation, being in compliance with a binding
schedule, agreed to by the director, to correct any violation
specified in a violation notice issued by the director.
(c) Not have been found by the director to be in significant
violation of environmental requirements established by a local unit
of government.
(2) Although a person does not meet the requirements of
subsection (1), the director may approve the person's application
for clean corporate citizen designation if the application includes
a binding and significant reduction in wastes below what would
otherwise be required by applicable environmental requirements or
includes a significant and permanent retirement of air emission
reduction credits in accordance with R 336.2201 to R 336.2218 of
the Michigan administrative code.
(3) In the case of a change of ownership, the director may
consider the environmental record of the new owner in determining
whether the criteria in this section are met.
Sec. 1413. (1) A person operating an establishment in this
state may apply for a clean corporate citizen designation with
respect to that establishment. An applicant for a clean corporate
citizen designation shall follow the procedures set forth in this
section.
(2) Not less than 30 days before submitting to the department
an application for clean corporate citizen designation, the
applicant shall notify the department of its intent to submit an
application and publish in a local newspaper notice of that intent
and of the availability of the application and related
documentation for public review. The application and related
documentation shall be made available at a local public library or
other public building for not less than 30 days. The public notice
shall state that comments on the application may be directed to the
applicant or the department. The documentation provided for public
review shall include all of the following information:
(a) A detailed summary for each element of the environmental
management system that demonstrates that the applicant meets the
requirements of section 1407.
(b) A copy of the applicant's pollution prevention policy and
supporting information that demonstrate that the applicant meets
the requirements of section 1409.
(c) A copy of the signed statement of compliance as set forth
in section 1411(1)(a).
(3) After the 30-day public review period, an applicant may
submit the application for a clean corporate citizen designation to
the department, on a form provided by the department, together with
all of the following:
(a) A checklist of the documentation that has been made
available for public review under subsection (2).
(b) A signed statement by the responsible official that the
applicant meets the requirements of sections 1405 to 1411.
(c) A detailed summary for each element of the environmental
management system and demonstration of achievement of the
environmental management system requirements of section 1407.
(d) The pollution prevention policy and supporting information
to demonstrate achievement of the pollution prevention requirements
in section 1409.
(e) A combined list of the significant goals, objectives, and
targets that are set in the environmental management system and the
pollution prevention program.
(f) The certification of compliance as required by section
1411(1)(a).
(g) A summary of public comments received by the applicant and
the department during the public review period and the applicant's
response to the public comments received.
(4) The department shall complete its initial review of the
clean corporate citizen's application within 14 days of receipt of
the application.
(5) The department shall publish, in the department calendar,
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 not less than 30 days
before the department makes a decision on the application.
(6) Within 60 days of receipt of a complete application,
unless an extension of time is requested by the applicant, the
director shall consider public comments, determine whether the
criteria of these rules have been met, and notify the applicant, in
writing, of the clean corporate citizen designation approval or
disapproval.
(7) There is no formal appeal of the director's designation
decision.
(8) A person operating an establishment in Michigan may
reapply for clean corporate citizen designation at any time.
Sec. 1415. (1) To retain a clean corporate citizen
designation, a clean corporate citizen shall annually, at least 30
days before the anniversary date of the current clean corporate
citizen designation, submit a renewal request, supporting
information, and a certification that the clean corporate citizen
is currently achieving the criteria set forth in sections 1407,
1409, and 1411.
(2) The supporting information specified in subsection (1)
shall include an annual report summarizing the activities
undertaken to do all of the following and describing the status of
the activities:
(a) Maintain and implement the environmental management system
consistent with section 1407.
(b) Identify and implement pollution prevention activities
consistent with section 1409.
(c) Set, revise, and implement goals, objectives, and targets,
and the strategy the clean corporate citizen is employing to
resolve any unmet goals, objectives, and targets in its
environmental management system and pollution prevention program.
(3) A renewal request shall include a statement by the
responsible official that the clean corporate citizen is in
compliance with all applicable environmental requirements and has
no outstanding unresolved violations, or is in compliance with a
binding schedule to correct any outstanding violations.
(4) The director shall terminate a person's clean corporate
citizen designation if the director determines that any of the
following apply to the person:
(a) The person failed to maintain and implement an
environmental management system under section 1407.
(b) The person failed to maintain and implement a pollution
prevention policy and program under section 1409.
(c) The person failed to meet the environmental compliance
criteria under section 1411.
(d) After the effective date of the current clean corporate
citizen designation, the person has been subject to any of the
following:
(i) Conviction of a criminal violation of applicable
environmental requirements.
(ii) Assessment by a court of appropriate jurisdiction of a
civil fine, penalty, or damages of $10,000.00 or more for violation
of applicable environmental requirements.
(iii) A determination by a court of appropriate jurisdiction of
responsibility for an illegal action that caused substantial
endangerment to the public health, safety, or welfare or to the
environment.
(iv) A finding by the director of failure to promptly and
adequately correct and resolve a serious violation of applicable
environmental requirements.
(5) The director shall advise a person of the director's
intent to terminate the person's clean corporate citizen
designation not less than 30 days before terminating the
designation.
(6) There is no formal appeal of the director's termination
decision.
(7) A person operating an establishment in Michigan may
reapply for clean corporate citizen designation at any time.
Sec. 1417. (1) A designated clean corporate citizen qualifies
for clean corporate citizen benefits for the relevant establishment
set forth in rules promulgated under any of the following:
(a) Article II and chapters 1 and 3 of article III.
(b) The safe drinking water act, 1976 PA 399, MCL 325.1001 to
325.1023.
(c) Parts 135 and 138 of the public health code, 1978 PA 368,
MCL 333.13501 to 333.13536 and 333.13801 to 333.13831.
(2) The department shall promulgate rules providing for
reductions in permit, license, or other fees assessed against clean
corporate citizens under the statutes or parts of statutes listed
in subsection (1) or rules promulgated thereunder. The reduction in
any single fee shall not exceed $500.00 per year.
Sec. 1419. Upon termination of a clean corporate citizen
designation with respect to an establishment, all benefits provided
to a former clean corporate citizen under section 1417 for that
establishment shall be terminated or restricted as provided in this
part and as determined by the director.
Sec. 1421. This part shall not be construed in a manner that
authorizes any violation of state or federal law.