August 22, 2007, Introduced by Senator McMANUS and referred to the Committee on Appropriations.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 21503, 21506, and 21550 (MCL 324.21503,
324.21506, and 324.21550), section 21503 as amended by 2006 PA 318
and sections 21506 and 21550 as amended by 2004 PA 390.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 21503. As used in this part:
(a) "Payment voucher" means a form prepared by the department
that specifies payment authorization by the department to the
department of treasury.
(b) "Petroleum" means crude oil, crude oil fractions, and
refined petroleum fractions including gasoline, kerosene, heating
oils, and diesel fuels.
(c) "Petroleum underground storage tank system" means an
underground storage tank system used for the storage of petroleum.
(d) "Precertification application" means the application
submitted by an owner or operator seeking the department's
eligibility determination for reimbursement for the costs of
corrective action from the temporary reimbursement program.
(e) "Refined petroleum" means aviation gasoline, middle
distillates, jet fuel, kerosene, gasoline, residual oils, and any
oxygenates that have been blended with any of these.
(f) "Refined petroleum fund" means the refined petroleum fund
established under section 21506a.
(g) "Refined petroleum product cleanup initial program" means
the program established in section 21553.
(h)
"Refined petroleum product cleanup program" means the
refined
petroleum product cleanup initial program and the program
based
upon the recommendations of the petroleum cleanup advisory
council
under section 21552(10).
(h) (i)
"Regulated financial
institution" means a state or
nationally chartered bank, savings and loan association or savings
bank, credit union, or other state or federally chartered lending
institution or a regulated affiliate or regulated subsidiary of any
of these entities.
(j)
"Regulatory fee" means the environmental protection
regulatory
fee imposed under section 21508.
(i) (k)
"Release" means any
spilling, leaking, emitting,
discharging, escaping, or leaching from a petroleum underground
storage tank system into groundwater, surface water, or subsurface
soils.
(j) (l) "Site"
means a location where a release has occurred or
a threat of a release exists from an underground storage tank
system, excluding any location where corrective action was
completed which satisfies the cleanup criteria for unrestricted
residential use under part 213.
(k) (m)
"Temporary reimbursement
program" means the program
established in section 21554.
(l) (n)
"Underground storage tank
system" means an existing
tank or combination of tanks, including underground pipes connected
to the tank or tanks, which is or was used to contain an
accumulation of regulated substances, and is not currently being
used for any other purpose, and the volume of which, including the
volume of the underground pipes connected to the tank or tanks, is
10% or more beneath the surface of the ground. An underground
storage tank system includes an underground storage tank that is
properly closed in place pursuant to part 211 and rules promulgated
under that part. An underground storage tank system does not
include any of the following:
(i) A farm or residential tank of 1,100 gallons or less
capacity used for storing motor fuel for noncommercial purposes.
(ii) A tank used for storing heating oil for consumptive use on
the premises where the tank is located.
(iii) A septic tank.
(iv) A pipeline facility, including gathering lines regulated
under either of the following:
(A)
The natural gas pipeline safety act of 1968, Public Law
90-481,
49 USC Appx 1671 to 1677, 1679a
to 1682, and 1683 to 1687
1686.
(B) Sections 201 to 215, 217, and 219 of the hazardous liquid
pipeline safety act of 1979, title II of the pipeline safety act of
1979,
Public Law 96-129, 49 USC Appx 1811,
2001 to 2015 2014.
(v) A surface impoundment, pit, pond, or lagoon.
(vi) A storm water or wastewater collection system.
(vii) A flow-through process tank.
(viii) A liquid trap or associated gathering lines directly
related to oil or gas production and gathering operations.
(ix) A storage tank situated in an underground area such as a
basement, cellar, mineworking, drift, shaft, or tunnel if the
storage tank is situated upon or above the surface of the floor.
(x) Any pipes connected to a tank described in subparagraphs
(i) to (ix).
(xi) An underground storage tank system holding hazardous
wastes listed or identified under subtitle C of title II of the
solid
waste disposal act, title II of Public Law 89-272, 42 USC
6921 to 6939e, or a mixture of such hazardous waste and other
regulated substances.
(xii) A wastewater treatment tank system that is part of a
wastewater treatment facility regulated under section 307(b) of
title III or section 402 of title IV of the federal water pollution
control act, 33 USC 1317 and 1342.
(xiii) Equipment or machinery that contains regulated substances
for operational purposes such as hydraulic lift tanks and
electrical equipment tanks.
(xiv) An underground storage tank system with a capacity of 110
gallons or less.
(xv) An underground storage tank system that contains a de
minimis concentration of regulated substances.
(xvi) An emergency spill or overflow containment underground
storage tank system that is expeditiously emptied after use.
(xvii) A wastewater treatment tank system.
(xviii) An underground storage tank system containing
radioactive material that is regulated under the atomic energy act
of 1954, chapter 1073, 68 Stat. 919.
(xix) An underground storage tank system that is part of an
emergency generator system at nuclear power generation facilities
regulated by the nuclear regulatory commission under 10 CFR part
50, appendix A to part 50 of title 10 of the code of federal
regulations.
(xx) Airport hydrant fuel distribution systems.
(xxi) Underground storage tank systems with field-constructed
tanks.
(m) (o)
"Work invoice" means an
original billing acceptable to
the administrator and signed by the owner or operator and a
consultant that includes all of the following:
(i) The name, address, and federal tax identification number of
each contractor who performed work.
(ii) The name and social security number of each employee who
performed work.
(iii) A specific itemized list of the work performed by each
contractor and an itemized list of the cost of each of these items.
(iv) A statement that the consultant employed a documented
sealed competitive bidding process for any contract award exceeding
$5,000.00.
(v) If the consultant did not accept the lowest responsive bid
received, a specific reason why the lowest responsive bid was not
accepted.
(vi) Upon request of the administrator, a list of all bids
received.
(vii) Proof of payment of the co-pay amount as required under
section 21514.
Sec. 21506. (1) The Michigan underground storage tank
financial assurance fund is created in the state treasury.
(2) The state treasurer shall direct the investment of the
fund. Interest and earnings from fund investments shall be credited
to 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)
Except as provided in subsections (5) and subsection (6),
money in the fund shall be expended only as follows and in the
following order of priority:
(a) To defease principal and interest due and owing on bonds
issued by the authority pursuant to this part that are outstanding
on
the effective date of the 2004 amendatory act that amended this
section
October 12, 2004.
(b) For the reasonable administrative cost of implementing
this part by the department, the department of treasury, the
department of attorney general, and the authority as annually
appropriated by the legislature. Administrative costs include the
actual and necessary expenses incurred by the board and its members
in carrying out the duties imposed by this part. Total
administrative costs expended under this subdivision shall not
exceed 7% of the fund's projected revenues in any year. Costs
incurred by the authority for the issuance of bonds or notes which
may also be payable from the proceeds of the bonds or notes shall
not be considered administrative costs.
(c) For payment of rewards under section 21549.
(d) For the interest subsidy program established in section
21522. The money expended under this subdivision shall not exceed
10% of the fund's projected revenues in any year. However, 10% of
the revenue of the fund during the first year of the fund's
operation shall be expended on the interest subsidy program. If
this money is not expended during the first year, this money shall
be carried over for expenditure in the succeeding years of the
fund's operation. Additional fund revenue shall not be set aside
for the interest subsidy program until all of the first year
revenue is expended.
(e) For corrective action and indemnification including all of
the following:
(i) Payments for work invoices submitted prior to 5 p.m. on
June 29, 1995 and approved by the department pursuant to this part.
(ii) Payments for requests for indemnification submitted prior
to 5 p.m. on June 29, 1995 and approved by the department pursuant
to this part.
(iii) Payments for work invoices or requests for indemnification
that were submitted prior to 5 p.m. on June 29, 1995 and denied by
the department pursuant to this part but which denials were
subsequently reversed on appeal.
(5)
All revenue collected during the state fiscal years ending
September 30, 2003 and September 30, 2004 from the environmental
protection
regulatory fee imposed under section 21508 shall be
allocated
and expended by the state treasurer for the purchase of
United
States treasury obligations in
an amount sufficient,
together
with interest on the obligations, to implement subsection
(4)(a).
(5) (6)
Upon determination by the state
treasurer of the
amount of money needed to satisfy all obligations listed in
subsection (4), the state treasurer shall transfer all remaining
money in the fund to the refined petroleum fund created in section
21506a.
(6) (7)
The board shall make
recommendations to the
appropriations committees in the senate and house of
representatives on the distribution and amount of administrative
costs under subsection (4)(b). The board shall provide a copy of
these recommendations to each affected department.
Sec.
21550. (1) Section 21508 is repealed. effective December
31,
2010.
(2) The authority's obligation to pay off any bonds or notes
issued
pursuant to this part shall survive is not affected by the
repeal of section 21508.