| 1 | 1 | | HOUSE BILL NO. 6162 A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding part 192. the people of the state of michigan enact: PART 192 BROWNFIELD REDEVELOPMENT Sec. 19201. As used in this part: (a) "Baseline environmental assessment" means that term as defined in sections 20101 and 21302. (b) "Brownfield project" or "project" means the entire project to be undertaken, including, but not limited to, the actual site remediation and the resulting economic development. (c) "Corrective action" means that term as defined in section 21302. (d) "Department" means the department of environment, Great Lakes, and energy. (e) "Due care activities" means those response activities conducted under sections 20107a and 21304c. (f) "Eligible activities" includes any of the following for projects with funding allocated under the program: (i) Baseline environmental assessment activities. (ii) Investigations. (iii) Due care activities. (iv) Response activities. (v) Removal and closure of underground storage tanks in accordance with parts 211 and 213. (vi) Removal of universal waste, PCB-ballasts, transfers, capacitors, refrigerant gases, batteries, chemical, mercury switches, or other hazardous materials. (vii) Industrial cleaning. (viii) Removal and disposal of lake or river sediments that exceed part 201 cleanup criteria for unrestricted residential use from or related to an economic development project, if the upland property is a facility or would become a facility as the result of disposition of dredged spoils. (ix) The following activities, provided that the total cost of these activities does not exceed the total cost of project-related activities identified in subparagraphs (i) to (viii): (A) Removal of uncontaminated surficial material and debris from the eligible property, provided it was not generated or accumulated by the authority or the developer, including, but not limited to tires, furniture, building debris, appliances, abandoned vehicles, general refuse, and localized buried debris not associated with landfills or dumps. (B) Demolition of lead, asbestos, or mold abatement that is not a response activity. (g) "Eligible property" for projects with funding allocated under the program means property that is known or suspected to be a facility under part 201 or a site or property under part 213 that was used or is currently being used for commercial, industrial, public, or residential purposes. (h) "Facility" means that term as defined in section 20101. (i) "Local unit of government" means a county, city, village, or township, or an agency of a county, city, village, or township; or a brownfield redevelopment authority, an economic development corporation, or an authority or other public body created by or in accordance with state law. (j) "Measurable economic benefit" means the permanent jobs that are created or retained, the capital invested, the increased tax base, or other quantifiable benefits to the applicable county, city, village, and township where the project is located. (k) "Measurable environmental benefit" means the extent that the requirements of part 201 or 213, or both, are advanced at a brownfield project where environmental conditions inhibit the site's redevelopment or reuse. (l) "Program" means the brownfield redevelopment grant and revolving loan program created under section 19205. (m) "Response activity" means that term as defined in section 20101, and includes, but is not limited to, corrective actions and activities that are more protective of the public health, safety, and welfare and the environment than required by section 20107a or 21304c. Sec. 19203. The department shall expend money from 1 of the following funds, on appropriation, to provide grants and loans under the program: (a) The revitalization revolving loan fund created in section 20108a. (b) The state brownfield redevelopment fund created in section 8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2658a. (c) Other funding sources as necessary and appropriate. Sec. 19205. (1) The department shall create a brownfield redevelopment grant and revolving loan program for the purpose of making grants and loans to local units of government for eligible activities at eligible properties with redevelopment potential. (2) The department shall not issue a grant or loan under the program unless all of the following conditions are met: (a) The applicant is a local unit of government. (b) The applicant demonstrates to the department the capability of administering and managing the grant or loan. (c) The applicant demonstrates to the department that there is an identifiable source of funds for the future maintenance and operation of the activities funded with money from the program, if appropriate. (d) Within the last 24 months, the applicant has successfully undergone an audit conducted in accordance with generally accepted auditing standards or an emergency manager has been appointed for the applicant under the local financial stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575. (e) Within the last 24 months, the department has not revoked or terminated a grant to the applicant and the department has not determined that the applicant demonstrated an inability to manage a grant. (f) The applicant is not responsible for causing a release or threat of release under part 201 or part 213 at the site proposed for grant or loan funding, except as provided in section 19208(1). Sec. 19207. (1) Grants and loans issued under the program must meet the following conditions: (a) Except as provided in subdivision (b), a recipient is not eligible to receive more than the following: (i) One grant per year, not to exceed $2,000,000.00 per grant. (ii) One loan per year, not to exceed $2,000,000.00 per loan. (b) Brownfield projects that have significant economic and environmental benefit may be considered for more than 1 grant or loan in separate fiscal years, provided that the loan or grant agreement includes project-specific benchmarks for eligible activities and failure to satisfy a benchmark would terminate the project's eligibility for additional grant or loan funding, as applicable. (2) The department may award a grant only if it determines that all of the following apply: (a) The property is an eligible property. (b) The proposed development of the property is expected to result in measurable economic benefit in excess of the grant amount requested by the applicant. (c) The proposed project is in, or will result in, compliance with all applicable state laws and rules. (3) The department may award a loan only if it determines that all of the following apply: (a) The property is known or suspected to be an eligible property. (b) The property has economic development potential based on the applicant's planned use of the property. (c) The proposed project is in, or will result in, compliance with applicable state laws and rules. Sec. 19208. (1) A grant or loan may be used to fund assessment of due care activities necessary to facilitate redevelopment if the party responsible for an activity causing a release is not the owner or operator of the proposed redevelopment. (2) A loan may be used to fund response activities if both of the following are met, as applicable: (a) The party responsible for an activity causing a release is not the seller and is not, or will not be, the owner or operator of the property to receive funding. (b) The recipient of the funding can show that response activities are appropriate in relation to the redevelopment. (3) A grant may be used to fund response activities if the conditions under subsection (4) are met and the department determines that the project is in the public interest. (4) A loan may be used to fund appropriate response activities related to redevelopment and due care activities necessary to facilitate redevelopment of the property if the party responsible for an activity causing a release at the eligible property meets both of the following: (a) Is a local unit of government. (b) Has a proposed redevelopment plan for the property with measurable economic benefit. Sec. 19209. (1) An application for a grant or loan from the program must be made on a form and in a manner prescribed by the department. The department may require the applicant to provide any information reasonably necessary to allow the department to make a determination required by this part. (2) The department shall accept, and consider for approval, applications for grants and loans throughout the year. The department shall make final application decisions not later than 90 days after receipt of a complete application. A complete application must include all of the following: (a) The location of the property. (b) The current use and ownership of the property. (c) The relevant history and the past use and ownership of the property. (d) The environmental condition of the property. (e) A description of the proposed eligible activities and the reasons proposed eligible activities are necessary. (f) An itemized budget for the proposed eligible activities. (g) A schedule for the completion of the proposed eligible activities. (h) A description of the proposed project and measurable economic benefit. (i) If the property is not owned by the applicant, a draft of an enforceable agreement between the property owner and the applicant that commits the property owner to cooperate with the applicant, including a commitment to allow access to the property to complete, at a minimum, the proposed eligible activities. (j) For loans, a resolution from the governing body of the applicant committing to repayment of the loan. If the applicant is a sub-unit of a local unit of government, the resolution required under this subdivision must be from the county, city, village, or township under which the sub-unit was formed. (k) A letter or resolution from the city, township, or village where the project will be developed that demonstrates support for the project and that the project complies with all local zoning and planning ordinances. (l) Any other relevant information required by the department. (3) The department shall review a complete application received under subsection (2) using the following considerations: (a) Whether the proposed project is authorized by this part. (b) Whether the proposed project is consistent with local planning and zoning for the area in which the proposed project is located. (c) Whether the proposed project provides a measurable environmental benefit. (d) Whether the proposed project provides a measurable economic benefit. (e) Whether the proposed project will significantly contribute to the local unit of government's economic and community redevelopment or the revitalization of adjacent neighborhoods. (f) The viability and schedule of the proposed redevelopment. (g) The level of public and private commitment and other resources available for the proposed project. (h) How the proposed project relates to a broader economic and community development plan for the local unit of government. (i) Whether the proposed project is likely to be undertaken without assistance from this state. (j) Other criteria considered relevant by the department. Sec. 19211. (1) To receive grant or loan funds, approved applicants must enter into a grant or loan agreement with the department. At a minimum, the grant or loan agreement must contain all of the following information: (a) The eligible activities to be undertaken with grant or loan funds. (b) The budget for utilizing the grant or loan funds. (c) An implementation schedule for the eligible activities. (d) Reporting requirements, including, at a minimum, the following: (i) The grant or loan recipient shall submit progress status reports to the department on a form and in a manner prescribed by and at a frequency determined by the department. (ii) The grant or loan recipient shall provide a final report after completing the grant- or loan-funded activities within a time frame determined by the department. (e) Other provisions considered necessary by the department. (2) If the property is not owned by the grant or loan recipient, an enforceable agreement that provides for access and meets the requirements of section 19209(2)(i) must be provided before the department approves a work plan. (3) Unless otherwise approved by the department, only activities carried out and costs incurred after execution of a grant or loan agreement are eligible. All eligible activities must be consistent with an approved work plan. (4) Grant funds must be disbursed on a reimbursement basis on receipt of appropriate documentation. Loan funds must be disbursed in draws based on an approved work plan, and supporting documentation must be submitted after expenses are incurred. (5) The department shall specify documentation requirements for grants and loans on a form prescribed for requesting reimbursement or draws. Sec. 19213. Before making a grant or loan under the program, the department shall consider the extent to which the making of the grant or loan contributes to the achievement of a balanced distribution of grants and loans throughout this state. Sec. 19215. (1) A recipient of a grant or loan issued under the program shall do both of the following: (a) Keep an accounting of the money spent on the project or facility in a generally accepted manner. An accounting under this subdivision is subject to a postaudit. (b) Obtain authorization from the department before implementing a change that significantly alters the proposed project. (2) The department may revoke a grant or loan issued under the program or withhold payment if the proposed project changes, is delayed, or is not implemented, or if the recipient fails to comply with the terms and conditions of the grant or loan agreement or with the requirements of this part or the rules promulgated under this part, or with other applicable law or rules. If a grant or loan is revoked, the department may recover all funds awarded. (3) To ensure timely completion of a project and receipt of project deliverables defined by the work plan and any required documentations and reports, the department may withhold 10% of the grant or loan amount until the project is completed. (4) If an approved applicant fails to sign a grant or loan agreement within 90 days after receipt of a written grant or loan offer by the department, the department may cancel the grant or loan offer. The applicant may not appeal or contest a cancellation under this subsection. (5) The department may terminate a grant or loan agreement and require immediate repayment of the grant or loan if the recipient uses grant or loan funds for any purpose other than for the approved activities specified in the grant or loan agreement. The department shall provide the recipient written notice of the termination 30 days before the termination. Sec. 19216. (1) A loan issued under the program must be made on the following terms: (a) A loan interest rate of not more than 50% of the prime rate as determined by the department as of the date of approval of the loan. (b) A loan repayment schedule that requires a loan recipient to repay the loan in equal annual installments of principal and interest beginning not later than 5 years after the first draw of the loan and concluding not later than 15 years after the first draw of the loan. (2) On request of a loan recipient and a showing of financial hardship related to the project that was financed in whole or in part by the loan, the department may renegotiate the terms of an outstanding loan, including the length of the loan, interest rate, and repayment terms. The department shall not reduce or eliminate the amount of the outstanding loan principal. The department shall report to the legislature the number of loans refinanced under this subsection, the local unit of government or authority responsible for each loan refinanced, and the change in the terms of the loan, as appropriate. This information may be included in the report prepared by the department under section 19220. (3) Repayments of principal and interest must be deposited in 1 of the following funds based on programmatic need: (a) The revitalization revolving loan fund created in section 20108a. (b) The state brownfield redevelopment fund created in section 8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2658a. Sec. 19219. The department and the department of attorney general may recover costs expended under this part for corrective actions, response activities, and all other recoverable costs under part 201 or 213 from parties that are responsible for an activity that causes a release under part 201 or 213. Actions to recover costs must be conducted in the manner provided for in part 201 or 213, as applicable. Sec. 19220. Annually, the department shall submit a list of the projects financed under this part during the previous fiscal year to the governor, the standing committees of the house of representatives and the senate that primarily address issues pertaining to the protection of natural resources and the environment, and the subcommittees of the house of representatives and the senate on appropriations for natural resources and environmental quality. The list must include the following information: (a) The name and location of the project. (b) The nature of the project. (c) The amount of money allocated to the project. (d) The county in which the project is located. (e) Other information considered relevant by the department. Sec. 19221. The governor shall include in the governor's annual budget recommendations to the legislature a recommended level of funding to provide for the activities necessary to implement this part. Sec. 19223. The department may promulgate rules in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this part. |
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| 23 | 23 | | HOUSE BILL NO. 6162 |
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| 26 | 26 | | |
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| 27 | 27 | | A bill to amend 1994 PA 451, entitled |
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| 28 | 28 | | |
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| 29 | 29 | | "Natural resources and environmental protection act," |
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| 30 | 30 | | |
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| 31 | 31 | | (MCL 324.101 to 324.90106) by adding part 192. |
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| 32 | 32 | | |
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| 33 | 33 | | the people of the state of michigan enact: |
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| 34 | 34 | | |
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| 35 | 35 | | PART 192 |
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| 36 | 36 | | |
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| 37 | 37 | | BROWNFIELD REDEVELOPMENT |
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| 38 | 38 | | |
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| 39 | 39 | | Sec. 19201. As used in this part: |
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| 40 | 40 | | |
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| 41 | 41 | | (a) "Baseline environmental assessment" means that term as defined in sections 20101 and 21302. |
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| 42 | 42 | | |
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| 43 | 43 | | (b) "Brownfield project" or "project" means the entire project to be undertaken, including, but not limited to, the actual site remediation and the resulting economic development. |
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| 44 | 44 | | |
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| 45 | 45 | | (c) "Corrective action" means that term as defined in section 21302. |
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| 46 | 46 | | |
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| 47 | 47 | | (d) "Department" means the department of environment, Great Lakes, and energy. |
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| 48 | 48 | | |
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| 49 | 49 | | (e) "Due care activities" means those response activities conducted under sections 20107a and 21304c. |
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| 50 | 50 | | |
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| 51 | 51 | | (f) "Eligible activities" includes any of the following for projects with funding allocated under the program: |
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| 52 | 52 | | |
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| 53 | 53 | | (i) Baseline environmental assessment activities. |
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| 54 | 54 | | |
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| 55 | 55 | | (ii) Investigations. |
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| 56 | 56 | | |
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| 57 | 57 | | (iii) Due care activities. |
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| 58 | 58 | | |
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| 59 | 59 | | (iv) Response activities. |
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| 61 | 61 | | (v) Removal and closure of underground storage tanks in accordance with parts 211 and 213. |
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| 62 | 62 | | |
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| 63 | 63 | | (vi) Removal of universal waste, PCB-ballasts, transfers, capacitors, refrigerant gases, batteries, chemical, mercury switches, or other hazardous materials. |
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| 64 | 64 | | |
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| 65 | 65 | | (vii) Industrial cleaning. |
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| 66 | 66 | | |
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| 67 | 67 | | (viii) Removal and disposal of lake or river sediments that exceed part 201 cleanup criteria for unrestricted residential use from or related to an economic development project, if the upland property is a facility or would become a facility as the result of disposition of dredged spoils. |
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| 68 | 68 | | |
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| 69 | 69 | | (ix) The following activities, provided that the total cost of these activities does not exceed the total cost of project-related activities identified in subparagraphs (i) to (viii): |
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| 71 | 71 | | (A) Removal of uncontaminated surficial material and debris from the eligible property, provided it was not generated or accumulated by the authority or the developer, including, but not limited to tires, furniture, building debris, appliances, abandoned vehicles, general refuse, and localized buried debris not associated with landfills or dumps. |
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| 72 | 72 | | |
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| 73 | 73 | | (B) Demolition of lead, asbestos, or mold abatement that is not a response activity. |
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| 74 | 74 | | |
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| 75 | 75 | | (g) "Eligible property" for projects with funding allocated under the program means property that is known or suspected to be a facility under part 201 or a site or property under part 213 that was used or is currently being used for commercial, industrial, public, or residential purposes. |
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| 77 | 77 | | (h) "Facility" means that term as defined in section 20101. |
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| 79 | 79 | | (i) "Local unit of government" means a county, city, village, or township, or an agency of a county, city, village, or township; or a brownfield redevelopment authority, an economic development corporation, or an authority or other public body created by or in accordance with state law. |
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| 80 | 80 | | |
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| 81 | 81 | | (j) "Measurable economic benefit" means the permanent jobs that are created or retained, the capital invested, the increased tax base, or other quantifiable benefits to the applicable county, city, village, and township where the project is located. |
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| 82 | 82 | | |
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| 83 | 83 | | (k) "Measurable environmental benefit" means the extent that the requirements of part 201 or 213, or both, are advanced at a brownfield project where environmental conditions inhibit the site's redevelopment or reuse. |
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| 85 | 85 | | (l) "Program" means the brownfield redevelopment grant and revolving loan program created under section 19205. |
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| 87 | 87 | | (m) "Response activity" means that term as defined in section 20101, and includes, but is not limited to, corrective actions and activities that are more protective of the public health, safety, and welfare and the environment than required by section 20107a or 21304c. |
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| 89 | 89 | | Sec. 19203. The department shall expend money from 1 of the following funds, on appropriation, to provide grants and loans under the program: |
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| 91 | 91 | | (a) The revitalization revolving loan fund created in section 20108a. |
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| 92 | 92 | | |
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| 93 | 93 | | (b) The state brownfield redevelopment fund created in section 8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2658a. |
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| 95 | 95 | | (c) Other funding sources as necessary and appropriate. |
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| 97 | 97 | | Sec. 19205. (1) The department shall create a brownfield redevelopment grant and revolving loan program for the purpose of making grants and loans to local units of government for eligible activities at eligible properties with redevelopment potential. |
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| 99 | 99 | | (2) The department shall not issue a grant or loan under the program unless all of the following conditions are met: |
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| 100 | 100 | | |
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| 101 | 101 | | (a) The applicant is a local unit of government. |
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| 102 | 102 | | |
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| 103 | 103 | | (b) The applicant demonstrates to the department the capability of administering and managing the grant or loan. |
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| 104 | 104 | | |
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| 105 | 105 | | (c) The applicant demonstrates to the department that there is an identifiable source of funds for the future maintenance and operation of the activities funded with money from the program, if appropriate. |
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| 107 | 107 | | (d) Within the last 24 months, the applicant has successfully undergone an audit conducted in accordance with generally accepted auditing standards or an emergency manager has been appointed for the applicant under the local financial stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575. |
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| 109 | 109 | | (e) Within the last 24 months, the department has not revoked or terminated a grant to the applicant and the department has not determined that the applicant demonstrated an inability to manage a grant. |
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| 111 | 111 | | (f) The applicant is not responsible for causing a release or threat of release under part 201 or part 213 at the site proposed for grant or loan funding, except as provided in section 19208(1). |
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| 113 | 113 | | Sec. 19207. (1) Grants and loans issued under the program must meet the following conditions: |
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| 115 | 115 | | (a) Except as provided in subdivision (b), a recipient is not eligible to receive more than the following: |
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| 117 | 117 | | (i) One grant per year, not to exceed $2,000,000.00 per grant. |
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| 119 | 119 | | (ii) One loan per year, not to exceed $2,000,000.00 per loan. |
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| 121 | 121 | | (b) Brownfield projects that have significant economic and environmental benefit may be considered for more than 1 grant or loan in separate fiscal years, provided that the loan or grant agreement includes project-specific benchmarks for eligible activities and failure to satisfy a benchmark would terminate the project's eligibility for additional grant or loan funding, as applicable. |
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| 123 | 123 | | (2) The department may award a grant only if it determines that all of the following apply: |
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| 125 | 125 | | (a) The property is an eligible property. |
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| 127 | 127 | | (b) The proposed development of the property is expected to result in measurable economic benefit in excess of the grant amount requested by the applicant. |
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| 129 | 129 | | (c) The proposed project is in, or will result in, compliance with all applicable state laws and rules. |
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| 130 | 130 | | |
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| 131 | 131 | | (3) The department may award a loan only if it determines that all of the following apply: |
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| 133 | 133 | | (a) The property is known or suspected to be an eligible property. |
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| 134 | 134 | | |
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| 135 | 135 | | (b) The property has economic development potential based on the applicant's planned use of the property. |
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| 137 | 137 | | (c) The proposed project is in, or will result in, compliance with applicable state laws and rules. |
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| 138 | 138 | | |
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| 139 | 139 | | Sec. 19208. (1) A grant or loan may be used to fund assessment of due care activities necessary to facilitate redevelopment if the party responsible for an activity causing a release is not the owner or operator of the proposed redevelopment. |
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| 141 | 141 | | (2) A loan may be used to fund response activities if both of the following are met, as applicable: |
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| 143 | 143 | | (a) The party responsible for an activity causing a release is not the seller and is not, or will not be, the owner or operator of the property to receive funding. |
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| 145 | 145 | | (b) The recipient of the funding can show that response activities are appropriate in relation to the redevelopment. |
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| 147 | 147 | | (3) A grant may be used to fund response activities if the conditions under subsection (4) are met and the department determines that the project is in the public interest. |
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| 149 | 149 | | (4) A loan may be used to fund appropriate response activities related to redevelopment and due care activities necessary to facilitate redevelopment of the property if the party responsible for an activity causing a release at the eligible property meets both of the following: |
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| 151 | 151 | | (a) Is a local unit of government. |
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| 152 | 152 | | |
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| 153 | 153 | | (b) Has a proposed redevelopment plan for the property with measurable economic benefit. |
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| 154 | 154 | | |
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| 155 | 155 | | Sec. 19209. (1) An application for a grant or loan from the program must be made on a form and in a manner prescribed by the department. The department may require the applicant to provide any information reasonably necessary to allow the department to make a determination required by this part. |
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| 157 | 157 | | (2) The department shall accept, and consider for approval, applications for grants and loans throughout the year. The department shall make final application decisions not later than 90 days after receipt of a complete application. A complete application must include all of the following: |
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| 159 | 159 | | (a) The location of the property. |
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| 160 | 160 | | |
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| 161 | 161 | | (b) The current use and ownership of the property. |
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| 163 | 163 | | (c) The relevant history and the past use and ownership of the property. |
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| 165 | 165 | | (d) The environmental condition of the property. |
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| 167 | 167 | | (e) A description of the proposed eligible activities and the reasons proposed eligible activities are necessary. |
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| 169 | 169 | | (f) An itemized budget for the proposed eligible activities. |
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| 171 | 171 | | (g) A schedule for the completion of the proposed eligible activities. |
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| 173 | 173 | | (h) A description of the proposed project and measurable economic benefit. |
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| 175 | 175 | | (i) If the property is not owned by the applicant, a draft of an enforceable agreement between the property owner and the applicant that commits the property owner to cooperate with the applicant, including a commitment to allow access to the property to complete, at a minimum, the proposed eligible activities. |
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| 176 | 176 | | |
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| 177 | 177 | | (j) For loans, a resolution from the governing body of the applicant committing to repayment of the loan. If the applicant is a sub-unit of a local unit of government, the resolution required under this subdivision must be from the county, city, village, or township under which the sub-unit was formed. |
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| 178 | 178 | | |
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| 179 | 179 | | (k) A letter or resolution from the city, township, or village where the project will be developed that demonstrates support for the project and that the project complies with all local zoning and planning ordinances. |
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| 180 | 180 | | |
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| 181 | 181 | | (l) Any other relevant information required by the department. |
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| 182 | 182 | | |
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| 183 | 183 | | (3) The department shall review a complete application received under subsection (2) using the following considerations: |
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| 184 | 184 | | |
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| 185 | 185 | | (a) Whether the proposed project is authorized by this part. |
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| 186 | 186 | | |
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| 187 | 187 | | (b) Whether the proposed project is consistent with local planning and zoning for the area in which the proposed project is located. |
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| 188 | 188 | | |
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| 189 | 189 | | (c) Whether the proposed project provides a measurable environmental benefit. |
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| 190 | 190 | | |
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| 191 | 191 | | (d) Whether the proposed project provides a measurable economic benefit. |
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| 192 | 192 | | |
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| 193 | 193 | | (e) Whether the proposed project will significantly contribute to the local unit of government's economic and community redevelopment or the revitalization of adjacent neighborhoods. |
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| 194 | 194 | | |
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| 195 | 195 | | (f) The viability and schedule of the proposed redevelopment. |
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| 196 | 196 | | |
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| 197 | 197 | | (g) The level of public and private commitment and other resources available for the proposed project. |
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| 198 | 198 | | |
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| 199 | 199 | | (h) How the proposed project relates to a broader economic and community development plan for the local unit of government. |
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| 200 | 200 | | |
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| 201 | 201 | | (i) Whether the proposed project is likely to be undertaken without assistance from this state. |
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| 202 | 202 | | |
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| 203 | 203 | | (j) Other criteria considered relevant by the department. |
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| 204 | 204 | | |
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| 205 | 205 | | Sec. 19211. (1) To receive grant or loan funds, approved applicants must enter into a grant or loan agreement with the department. At a minimum, the grant or loan agreement must contain all of the following information: |
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| 206 | 206 | | |
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| 207 | 207 | | (a) The eligible activities to be undertaken with grant or loan funds. |
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| 208 | 208 | | |
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| 209 | 209 | | (b) The budget for utilizing the grant or loan funds. |
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| 210 | 210 | | |
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| 211 | 211 | | (c) An implementation schedule for the eligible activities. |
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| 212 | 212 | | |
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| 213 | 213 | | (d) Reporting requirements, including, at a minimum, the following: |
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| 214 | 214 | | |
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| 215 | 215 | | (i) The grant or loan recipient shall submit progress status reports to the department on a form and in a manner prescribed by and at a frequency determined by the department. |
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| 216 | 216 | | |
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| 217 | 217 | | (ii) The grant or loan recipient shall provide a final report after completing the grant- or loan-funded activities within a time frame determined by the department. |
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| 218 | 218 | | |
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| 219 | 219 | | (e) Other provisions considered necessary by the department. |
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| 220 | 220 | | |
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| 221 | 221 | | (2) If the property is not owned by the grant or loan recipient, an enforceable agreement that provides for access and meets the requirements of section 19209(2)(i) must be provided before the department approves a work plan. |
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| 222 | 222 | | |
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| 223 | 223 | | (3) Unless otherwise approved by the department, only activities carried out and costs incurred after execution of a grant or loan agreement are eligible. All eligible activities must be consistent with an approved work plan. |
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| 224 | 224 | | |
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| 225 | 225 | | (4) Grant funds must be disbursed on a reimbursement basis on receipt of appropriate documentation. Loan funds must be disbursed in draws based on an approved work plan, and supporting documentation must be submitted after expenses are incurred. |
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| 226 | 226 | | |
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| 227 | 227 | | (5) The department shall specify documentation requirements for grants and loans on a form prescribed for requesting reimbursement or draws. |
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| 228 | 228 | | |
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| 229 | 229 | | Sec. 19213. Before making a grant or loan under the program, the department shall consider the extent to which the making of the grant or loan contributes to the achievement of a balanced distribution of grants and loans throughout this state. |
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| 230 | 230 | | |
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| 231 | 231 | | Sec. 19215. (1) A recipient of a grant or loan issued under the program shall do both of the following: |
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| 232 | 232 | | |
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| 233 | 233 | | (a) Keep an accounting of the money spent on the project or facility in a generally accepted manner. An accounting under this subdivision is subject to a postaudit. |
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| 234 | 234 | | |
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| 235 | 235 | | (b) Obtain authorization from the department before implementing a change that significantly alters the proposed project. |
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| 236 | 236 | | |
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| 237 | 237 | | (2) The department may revoke a grant or loan issued under the program or withhold payment if the proposed project changes, is delayed, or is not implemented, or if the recipient fails to comply with the terms and conditions of the grant or loan agreement or with the requirements of this part or the rules promulgated under this part, or with other applicable law or rules. If a grant or loan is revoked, the department may recover all funds awarded. |
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| 238 | 238 | | |
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| 239 | 239 | | (3) To ensure timely completion of a project and receipt of project deliverables defined by the work plan and any required documentations and reports, the department may withhold 10% of the grant or loan amount until the project is completed. |
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| 240 | 240 | | |
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| 241 | 241 | | (4) If an approved applicant fails to sign a grant or loan agreement within 90 days after receipt of a written grant or loan offer by the department, the department may cancel the grant or loan offer. The applicant may not appeal or contest a cancellation under this subsection. |
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| 242 | 242 | | |
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| 243 | 243 | | (5) The department may terminate a grant or loan agreement and require immediate repayment of the grant or loan if the recipient uses grant or loan funds for any purpose other than for the approved activities specified in the grant or loan agreement. The department shall provide the recipient written notice of the termination 30 days before the termination. |
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| 244 | 244 | | |
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| 245 | 245 | | Sec. 19216. (1) A loan issued under the program must be made on the following terms: |
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| 246 | 246 | | |
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| 247 | 247 | | (a) A loan interest rate of not more than 50% of the prime rate as determined by the department as of the date of approval of the loan. |
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| 248 | 248 | | |
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| 249 | 249 | | (b) A loan repayment schedule that requires a loan recipient to repay the loan in equal annual installments of principal and interest beginning not later than 5 years after the first draw of the loan and concluding not later than 15 years after the first draw of the loan. |
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| 250 | 250 | | |
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| 251 | 251 | | (2) On request of a loan recipient and a showing of financial hardship related to the project that was financed in whole or in part by the loan, the department may renegotiate the terms of an outstanding loan, including the length of the loan, interest rate, and repayment terms. The department shall not reduce or eliminate the amount of the outstanding loan principal. The department shall report to the legislature the number of loans refinanced under this subsection, the local unit of government or authority responsible for each loan refinanced, and the change in the terms of the loan, as appropriate. This information may be included in the report prepared by the department under section 19220. |
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| 252 | 252 | | |
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| 253 | 253 | | (3) Repayments of principal and interest must be deposited in 1 of the following funds based on programmatic need: |
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| 254 | 254 | | |
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| 255 | 255 | | (a) The revitalization revolving loan fund created in section 20108a. |
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| 256 | 256 | | |
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| 257 | 257 | | (b) The state brownfield redevelopment fund created in section 8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2658a. |
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| 258 | 258 | | |
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| 259 | 259 | | Sec. 19219. The department and the department of attorney general may recover costs expended under this part for corrective actions, response activities, and all other recoverable costs under part 201 or 213 from parties that are responsible for an activity that causes a release under part 201 or 213. Actions to recover costs must be conducted in the manner provided for in part 201 or 213, as applicable. |
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| 260 | 260 | | |
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| 261 | 261 | | Sec. 19220. Annually, the department shall submit a list of the projects financed under this part during the previous fiscal year to the governor, the standing committees of the house of representatives and the senate that primarily address issues pertaining to the protection of natural resources and the environment, and the subcommittees of the house of representatives and the senate on appropriations for natural resources and environmental quality. The list must include the following information: |
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| 262 | 262 | | |
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| 263 | 263 | | (a) The name and location of the project. |
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| 264 | 264 | | |
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| 265 | 265 | | (b) The nature of the project. |
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| 266 | 266 | | |
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| 267 | 267 | | (c) The amount of money allocated to the project. |
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| 268 | 268 | | |
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| 269 | 269 | | (d) The county in which the project is located. |
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| 270 | 270 | | |
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| 271 | 271 | | (e) Other information considered relevant by the department. |
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| 272 | 272 | | |
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| 273 | 273 | | Sec. 19221. The governor shall include in the governor's annual budget recommendations to the legislature a recommended level of funding to provide for the activities necessary to implement this part. |
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| 274 | 274 | | |
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| 275 | 275 | | Sec. 19223. The department may promulgate rules in accordance with the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this part. |
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