GROUNDWATER DISCHARGE FEES                                                                   S.B. 552:

                                                                                              SUMMARY AS ENACTED

                                                                                                                            

 

 

 

 

 

 

 

 

 

Senate Bill 552 (as enacted)                                                     PUBLIC ACT 247 of 2015

Sponsor:  Senator Mike Green

Senate Committee:  Appropriations

House Committee:  Appropriations

 

Date Completed:  4-12-17

 


CONTENT

 

The bill amended Part 31 (Water Resources Protection) of the Natural Resources and Environmental Protection Act to create a new facility group category for the purpose of issuing groundwater discharge permits; and delay the sunset date of groundwater discharge permit fees from December 31, 2015, to September 30, 2019.

 

Under Part 31, there are three group categories of groundwater discharge permits delineated by size and type as defined by rule; Group 1 facilities are the largest, followed by Groups 2 and 3. The Department of Environmental Quality (DEQ) issues annual permits for these facilities and charges an annual fee of $3,650, $1,500, and $200 for Group 1, 2, and 3 facilities, respectively. Municipalities with a population of 1,000 or fewer pay a $1,500 fee.

 

Under the bill, two of the three types of facilities previously classified as Group 2 facilities are reclassified into a new Group 2a and subject to an annual fee of $250 (rather than $1,500) if one or more of the following conditions are met:

 

-- The facility's discharge is from a laundromat.

-- The facility's discharge is from a public car wash or vehicle wash.

-- The facility's discharge is a subsurface sanitary discharge of fewer than 10,000 gallons per day, and does not meet the terms for authorization under Rule 323.2211(a).

-- The facility's discharge is a seasonal sanitary discharge from a recreational vehicle park or campground, recreational or vacation camp, or public park.

 

(Rule 323.2211(a) authorizes the discharge of sanitary sewage not exceeding a daily flow of 10,000 gallons if particular requirements are met.)

 

The bill took effect on December 22, 2015.

 

MCL 324.3101 & 324.3122                                                                                         

 

FISCAL IMPACT

 

The bill will have a negative fiscal impact on the DEQ, and a minor, but negative fiscal impact on local units of government that operate groundwater discharge facilities from FY 2016-17 through FY 2018-19.


The fees affected by the bill generate approximately $1.2 million annually, and provide about 45.8% of the total funding for the Groundwater Program in the DEQ. Under the bill, this revenue will be reduced by about $112,500. Table 1 provides additional details regarding this revenue.

 

Table 1

Permit Category

Number of Facilities

Former Law

FY 2015-16 (Under Bill)

Fee

Revenue

Fee

Revenue

Group 1

151

$3,650

$551,150

$3,650

$551,150

Group 2

278

1,500

552,000

1,500

417,000

Group 2a

90

250

22,500

Group 3

399

200

79,800

200

79,800

Muni. <1,000

16

$1,500

24,000

$1,500

24,000

TOTAL

--

$1,206,950

--

$1,094,450

 

                                                                                        Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.