2012-2013 Michigan Legislative Changes Update

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The Brownfield and Cleanup programs in Michigan have been undergoing revisions to make them more effective and efficient.

Changes to PA 381 → 2012 PA 502 (SB 1210)
- Brownfield Redevelopment Financing Act
Changes to PA 451 → 2012 PA 446 (SB 1328)
- Natural Resources Environmental Protection Act

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2012-2013 Michigan Legislative Changes Update

  1. 1. 2012-2013 Legislative Update Changes to PA 381 → 2012 PA 502 (SB 1210) - Brownfield Redevelopment Financing Act Changes to PA 451 → 2012 PA 446 (SB 1328) - Natural Resources Environmental Protection Act
  2. 2. Introduction • The Brownfield and Cleanup programs in Michigan have been undergoing revisions to make them more effective and efficient. • Two major bills were introduced: • SB 1210 addressed brownfield programs – primarily Act 381 or the Brownfield Redevelopment Financing Act (1996 PA 381, as amended); • SB 1328 addressed cleanup programs – primarily Part 201 of Natural Resources and Environmental Protection Act (1994 PA 451, as amended); • Governor Snyder signed the bills into law effective 12/31/12.
  3. 3. SB 1210 (PA 502) – Act 381 Amendments • Eliminated the January 1, 2013 sunset date for use of school TIF through an approved work plan (MDEQ and/or MSF) – no “end date” now. • Creates a new state Brownfield Redevelopment Fund (BRF): – Revenue source is 3 mils of the State Education Tax (6 mils); – Affects projects (Brownfield Plans) approved after 12/31/12; – 15% of annual deposits cover administrative costs of MSF and MDEQ to implement Act 381, and MDEQ to implement CMI grants and loans; – Provides funding for MDEQ Brownfield grants and loans under CMI; – Funds a new Strategic Fund Brownfield grant and loan program with MSF to fund eligible activities.
  4. 4. SB 1210 (PA 502) – Act 381 Amendments continued • Eligible site includes: – “facility”, functionally obsolete or blighted and now Historic Resource: • Historic Resource – publicly or privately owned historic building or structure located within a historic district designated by the National Register of Historic Places, the State Register of Historic Places, or a local historic district (Section 90A of the Michigan Strategic Fund Act, 1984 PA 270).
  5. 5. SB 1210 (PA 502) – Act 381 Amendments continued • General changes: – Eliminates the second public notice requirement for brownfield plans; – Authority costs – fiscal year limit increased to $500,000 for more than 31 active projects; – Authorities can increase fiscal year limit by 2% for each written agreement to serve as the sole BRA for a municipality up to 10% or for each written agreement between BRAs to administer one or more administrative operations of those BRAs; – Opportunity to develop a combined Brownfield Plan and MDEQ/MSF Work Plan – streamline the process; – Eliminates the requirement to reimburse MDEQ/MSF Work Plan review costs.
  6. 6. SB 1210 (PA 502) – Act 381 Amendments continued • General changes continued: – Allows school TIF placed in LSRRF to be used for any eligible activities without need for approved MDEQ/MSF work plan. Additionally, a BRA is no longer required to separately account for school versus non-school TIF. – Creates annual BRA financial reporting requirements. – Creates annual owner/developer reporting requirements. – Allows for abolishment or termination of a brownfield plan or plan amendment: • If the project failed to occur and the plan is terminated, the BRA/LUG could approve a new brownfield plan or amendment for up to 30 years.
  7. 7. SB 1210 (PA 502) – Act 381 Amendments continued • Allows for TIF reimbursement of additional eligible activities prior to approval of a Brownfield Plan: – Previously, allowed for local TIF reimbursement of: • Site investigation activities for a BEA or Due Care; • Completing a BEA or Due Care Plan – Now, allows for use of school TIF for above activities; – Also, allows school TIF reimbursement of liable parties for above activities; – Allows for school TIF reimbursement of unanticipated response activities with subsequent inclusion in and approval of a Brownfield Plan and MDEQ/MSF Work Plan; – Allows for local TIF reimbursement of any eligible activities; – Allows for school TIF reimbursement of non-response activities in “Core Community” with subsequent inclusion in and approval of a Brownfield Plan and MSF Work Plan.
  8. 8. SB 1210 (PA 502) – Act 381 Amendments continued • Allows for TIF reimbursement of additional infrastructure improvements – whether publicly or privately owned: – Underground parking; – Multi-level parking structures; – Urban stormwater management systems.
  9. 9. SB 1328 (PA 446) – Act 451 Amendments • Changes relevant to Brownfield sites: – Previously, the majority of MDEQ grant funds under the Clean Michigan Initiative were depleted; however there was a significant amount of loan funds available. – The loan funds were not utilized as readily due to the requirement that communities pledge full faith and credit for the funds – this requirement has been eliminated. – The amendments redistribute funding for the MDEQ grant and loan programs by increasing the amount available for grants by $12.5 million.
  10. 10. SB 1328 (PA 446) – Act 451 Amendments continued • Changes relevant to environmental remediation: – Allows for an “end game” related to investigation and cleanup activities: • No Further Action Reports can be submitted to MDEQ • Certificate of Completion for a response activity issued by MDEQ – Indoor Air Inhalation – • At operating manufacturing sites, allows for use of MIOSHA standards versus Part 201 cleanup criteria; – Amendments provide for new processes under Part 213 and 201 to obtain review and approval of a Due Care Plan by MDEQ. To meet transactional timeframes or loans or property transfers, the MDEQ must review and respond within 45 days.
  11. 11. • Q and A 2012-2013 Legislative Update

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