Substitute For

SENATE BILL NO. 565

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2022; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:


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part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2022, from the following funds:

APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

3,340,000,200


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Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

3,340,000,200

Federal revenues:

 

 

 

Total federal revenues

 

 

2,355,000,200

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

290,000,000

State general fund/general purpose

 

$

695,000,000

Sec. 102.  DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

25,000,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

25,000,000

Federal revenues:

 

 

 

Total federal revenues

 

 

25,000,000

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

0

(2) ONE-TIME APPROPRIATIONS

 

 

 

Watershed planning

 

$

10,000,000


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Culvert replacement

 

 

15,000,000

GROSS APPROPRIATION

 

$

25,000,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Coronavirus state fiscal recovery fund

 

 

25,000,000

State general fund/general purpose

 

$

0

Sec. 103.  DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

3,315,000,200

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

3,315,000,200

Federal revenues:

 

 

 

Total federal revenues

 

 

2,330,000,200

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

290,000,000

State general fund/general purpose

 

$

695,000,000

(2) ONE-TIME APPROPRIATIONS

 

 

 

Clean water infrastructure

 

$

235,000,000

Dam risk reduction revolving loan fund

 

 

650,000,000

Drinking water program (IIJA source)

 

 

400,000,000

Drinking water program reserve fund (ARPA source)

 

 

100

Emergency dam safety action fund

 

 

15,000,000


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Emergency dam safety grant program

 

 

15,000,000

Failing septic system loans

 

 

35,000,000

Geologic data collection

 

 

15,000,000

Great Lakes water authority

 

 

400,000,000

Healthy hydration

 

 

85,000,000

Home repair program

 

 

15,000,000

Lead service line replacement (IIJA source)

 

 

1,000,000,000

Lead service line replacement reserve fund (ARPA source)

 

 

100

Michigan water use advisory council

 

 

20,000,000

PFAS remediation grant program

 

 

100,000,000

Public health risk reduction grants

 

 

20,000,000

Stormwater, asset management, and wastewater program grants

 

 

100,000,000

Wastewater – clean water infrastructure grants 

 

 

200,000,000

Wetland mitigation grants

 

 

10,000,000

GROSS APPROPRIATION

 

$

3,315,000,200

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Coronavirus state fiscal recovery fund

 

 

930,000,200

Other federal revenues

 

 

1,400,000,000

Special revenues:

 

 

 

Great Lakes water quality bond

 

 

290,000,000

State general fund/general purpose

 

$

695,000,000

 

part 2

provisions concerning appropriations

 

general sections


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Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2022 is $985,000,000.00 and total state spending from state sources to be paid to local units of government is $340,000,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY

 

 

 

Dam risk reduction revolving loan fund

 

$

250,000,000

Clean water infrastructure

 

 

90,000,000

TOTAL

 

$

340,000,000

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this act, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within this act for the particular department, board, commission, office, or institution.

 

DEPARTMENT OF agriculture and rural development

Sec. 301. (1) From the funds appropriated in part 1 for watershed planning, $7,000,000.00 shall be used as a grant program to conservation districts to provide funds for the drafting of watershed management plans.


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(2) From the funds appropriated in part 1 for watershed planning, $3,000,000.00 shall be granted to a county with a population between 80,000 and 85,000 according to the 2010 federal decennial census for the creation of a water management plan related to flooding issues.

Sec. 302. From the funds appropriated in part 1 for culvert replacement, the department shall create a grant program for the costs of culvert replacement necessary for county drainage projects.

 

DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY

Sec. 401. The funds appropriated in part 1 for home repair program shall be allocated to a city with a population between 713,000 and 714,000 according to the 2010 federal decennial census and shall be used to make repairs to residential sewer lines and check valves.

Sec. 402. Funds appropriated in part 1 for clean water infrastructure must not be spent or otherwise distributed unless Senate Bill No. 319 and Senate Bill No. 320 of the 101st Legislature are enacted into law.

Sec. 403. (1) From the funds appropriated in part 1 for dam risk reduction revolving loan fund, $250,000,000.00 shall be allocated to a task force that is a 501(c)(3) nonprofit and is delegated authority for Midland and Gladwin Counties for the four lakes special assessment district under part 307, inland lake levels, and part 315, dam safety, of the natural resources and environmental protection act, 1994 PA 451, MCL 324.30701 to 324.30723 and MCL 324.31501 to 324.31529.

(2) Funds appropriated in part 1 for emergency dam safety


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grant program, emergency dam safety action fund, and dam risk reduction revolving loan fund must not be spent or otherwise distributed unless Senate Bill No. 470 of the 101st Legislature is enacted into law.

Sec. 404. (1) The funds appropriated in part 1 for drinking water program (IIJA source) shall be used for a grant program for water suppliers, which may include grants for any of the following:

(a) Connecting adjacent water systems.

(b) Allowing 2 or more water systems to consolidate.

(c) Upgrading existing drinking water facilities.

(d) Constructing new or replacement drinking water facilities.

(e) Other projects related to delivering clean water to the public.

(2) From the funds appropriated in part 1 for drinking water program (IIJA source), $50,000,000.00 shall be used for private well owner resources, including 1 or more of the following:

(a) Grants to private well owners to connect to an adjacent community water system as a result of contamination or failure.

(b) Grants to private well owners to replace or increase the depth of a well as a result of contamination or failure.

(c) Grants to private well owners for whole house or point of use filtration as a result of contamination. Filtration grants shall not exceed $3,000.00 per private well owner.

(d) Grants to local health departments to provide free or low-cost water testing to private well owners. Testing offered must include coliforms, nitrates/nitrites, arsenic, and other contaminants as determined by application. Grant awards to local health departments under this subdivision may also be used for outreach and education to the public on the need for testing and


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promotion of the local program.

(3) The unexpended funds appropriated in part 1 for drinking water program (IIJA source) are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide support for drinking water services and programs.

(b) The project will be accomplished by utilizing a combination of grants and contracts with service providers.

(c) The total estimated cost of the project is $400,000,000.00.

(d) The tentative completion date is September 30, 2026.

Sec. 405. (1) In addition to the funds appropriated in part 1, there is appropriated $400,000,000.00 from the American Rescue Plan Act of 2021, Public Law 117-2, to the drinking water program reserve fund (ARPA source).

(2) The funds appropriated under this section for drinking water program reserve fund (ARPA source) shall be transferred to the drinking water program (IIJA source) in part 1, subject to the requirements of the legislative transfer process under section 393(2) of the management and budget act, 1984 PA 431, MCL. 18.1393, according to the process in subsection (3).

(3) The department shall do both of the following:

(a) Annually create a report outlining the increased federal authorization available from the Infrastructure Investment and Jobs Act, Public Law 117-58.


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(b) Transfer $400,000,000.00 from the drinking water program reserve fund (ARPA source), less the amount calculated in subdivision (a), to the drinking water program (IIJA source) in part 1.

Sec. 406.  Funds appropriated in part 1 for failing septic system loans must not be spent or otherwise distributed unless Senate Bill No. 319 of the 101st Legislature is enacted into law.

Sec. 407. (1) From the funds appropriated in part 1 for geologic data collection, the department of environment, Great Lakes, and energy shall make $15,000,000.00 available to the Michigan Geological Survey (MGS) to conduct data collection and mapping to expand geologic information in up to 25 targeted areas in this state.

(2) Funds appropriated in part 1 for geologic data collection must not be spent or otherwise distributed unless Senate Bill No. 488 of the 101st Legislature is enacted into law.

Sec. 408. (1) From the funds appropriated in part 1 for Great Lakes water authority, $140,000,000.00 shall be used for water supply improvements, including transmission main metering and water treatment facilities.

(2) From the funds appropriated in part 1 for Great Lakes water authority, $246,000,000.00 shall be used for wastewater improvements related to flooding and recent water events, including the study, design, and construction for electrical redundancy and pumping capacity at wastewater pumping stations.

Sec. 409. (1) From the funds appropriated in part 1 for healthy hydration, the department of environment, Great Lakes, and energy shall award grants to schools for the installation of filtered drinking water stations. Grant applicants shall provide a


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30% match.

(2) Funds appropriated in part 1 for healthy hydration must not be spent or otherwise distributed unless Senate Bill No. 184 of the 101st Legislature is enacted into law.

Sec. 410. (1) From the funds appropriated in part 1 for lead service line replacement (IIJA source), not more than $250,000,000.00 shall be used to support lead service line replacement from the curb to the house, and the remaining $750,000,000.00 shall be used to support lead service line replacement from water providers to the curb.

(2) The unexpended funds appropriated in part 1 for lead service line replacement (IIJA source) are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide lead service line replacement.

(b) The project will be accomplished by utilizing grants and contracts with service providers.

(c) The total estimated cost of the project is $1,000,000,000.00.

(d) The tentative completion date is September 30, 2026.

Sec. 411. (1) In addition to the funds appropriated in part 1, there is appropriated $1,000,000,000.00 from the American Rescue Plan Act of 2021, Public Law 117-2, to lead service line replacement reserve fund (ARPA source).

(2) The funds appropriated under this section for lead service


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line replacement reserve fund (ARPA source) shall be transferred to the lead service line replacement (IIJA source) in part 1, subject to the requirements of the legislative transfer process under section 393(2) of the management and budget act, 1984 PA 431, MCL. 18.1393, according to the process in subsection (3).

(3) The department shall do both of the following:

(a) Annually create a report outlining the increased federal authorization available from the Infrastructure Investment and Jobs Act, Public Law 117-58.

(b) Transfer $1,000,000,000.00 from the lead service line replacement reserve fund (ARPA source), less the amount calculated in subdivision (a), to the lead service line replacement (IIJA source) in part 1.

Sec. 412. Funds appropriated in part 1 for public health risk reduction grants must not be spent or otherwise distributed unless Senate Bill No. 320 of the 101st Legislature is enacted into law.

Sec. 413. (1) From the funds appropriated in part 1 for wastewater – clean water infrastructure grants, the department of environment, Great Lakes, and energy shall award grants for design and construction projects to address sanitary and combined sewer overflows, and correct illicit connections to municipal drainage systems.

(2) Not less than $40,000,000.00 shall be allocated for grants to small communities for the design and construction of community wastewater facilities for communities with a population of not more than 5,000 according to the most recent decennial census where the majority of residents rely solely on individual septic systems for wastewater.

Sec. 414. (1) From the funds appropriated in part 1 for PFAS


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remediation grant program, the department shall award grants for PFAS remediation projects at sites with no identified responsible party and shall address drinking water, groundwater, or surface water contamination from PFAS.

(2) From the funds appropriated in part 1 for PFAS remediation grant program, $5,000,000.00 shall be allocated to Michigan State University to establish a PFAS testing facility. Funds may be used to develop appropriate laboratory space, purchase equipment, and for other needs associated with creating and operating a testing laboratory.

(3) From the funds appropriated in part 1 for PFAS remediation grant program, $15,000,000.00 shall be allocated to a county with a population between 172,000 and 172,500 according to the 2010 federal decennial census for PFAS remediation activities at a former industrial site contiguous with Muskegon Lake with no viable ownership entity. Remediation activities will address groundwater, drinking water, surface water, and fishery resources.

Sec. 415. (1) From the funds appropriated in part 1 for wetland mitigation grants, the department shall award grants to provide assistance for wetland mitigation actions including the purchase of wetland mitigation banking credits when available. Grant applicants must provide a 20% match. The grant program would provide assistance to those with approved wetland mitigation requirements resulting from permit applications under part 303 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.30301 to 324.30328.

(2) The grant agreement shall contain terms established by the department and the requirement that the grant recipient repay the grant, within 90 days of being informed to do so, with interest at


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a rate not to exceed 8% per year, in the event that the part 303 permit is not issued.

Sec. 416. From the funds appropriated in part 1 for Michigan water use advisory council, the council shall appropriate funds to address recommendations included in the Michigan Water Use Advisory Council 2020 report.