FY21-22 ENVIRONMENT, GREAT LAKES, AND ENERGY BUDGET     S.B. 91 (S-2): SENATE APPROPRIATIONS REC.

 

 

 

 

 

 

 

 

Senate Bill 91 (S-2 as reported)           Throughout this document Senate means Appropriations Committee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2020-21 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2020-21

YEAR-TO-DATE*

FY 2021-22

SEN. FULL COMM.

AMOUNT

PERCENT

FTE Positions............................................................

               1,418.0

               1,418.0

                      0.0

            0.0 

GROSS.....................................................................

       511,359,200

       565,270,500

         53,911,300

          10.5 

Less:

 

 

 

 

   Interdepartmental Grants Received.......................

           3,337,700

           3,544,800

              207,100

            6.2 

ADJUSTED GROSS.................................................

       508,021,500

       561,725,700

         53,704,200

          10.6 

Less:

 

 

 

 

   Federal Funds........................................................

       171,973,000

       171,889,200

               (83,800)

           (0.0)

   Local and Private....................................................

           1,412,800

           1,411,200

                 (1,600)

           (0.1)

TOTAL STATE SPENDING......................................

       334,635,700

       388,425,300

         53,789,600

          16.1 

Less:

 

 

 

 

   Other State Restricted Funds.................................

       275,191,800

       304,531,400

         29,339,600

          10.7 

GENERAL FUND/GENERAL PURPOSE.................

         59,443,900

         83,893,900

         24,450,000

          41.1 

PAYMENTS TO LOCALS.........................................

         44,000,600

         41,521,000

          (2,479,600)

           (5.6)

*As of February 8, 2021


 

 

Gross

GF/GP

FY 2020-21 Year-to-Date Appropriation.................................................

$511,359,200

$59,443,900

 

Changes from FY 2020-21 Year-to-Date:

 

 

   1.   Premcor Settlement. Governor and the Senate included a proposal for funds from the Premcor Administrative Consent order to fund cleanups of petroleum releases at 79 sites.

29,300,000

0

   2.   Emergency Dam Safety Action Fund. Governor recommended $15.0 million in funding for emergency response costs related to dams in cases in which a dam owner fails to pay for necessary work. The Senate modified the recommendation to divide the funding up between $12.0 million in a revolving fund and 3.0 million for emergency responses.

15,000,000

15,000,000

   3.   High Water Emergency Infrastructure Grants (one-time). Governor recommended funding to local government to cover high water level and climate resiliency planning and infrastructure needs. There would be $10.0 million dedicated to planning grants and $30.0 million for infrastructure grants. The Senate modified the program to be focused on infrastructure needs related to emergency situations and reduced the funding level to $10.0 million.

10,000,000

10,000,000

   4.    Michigan Water Use Advisory Council (WUAC) Recommendations. The Senate included $5.2 million in funding to support the effort of water conservation, data collection, and modeling recommended by the WUAC in their 2020 Report.

5,200,000

5,200,000

   5.   Drinking Water Laboratory. Governor recommended additional funding and staff levels of 3.0 FTEs to support drinking water testing. The Senate included the recommendation for increased funding, but not the increased FTEs.

1,450,000

0

   6.   Brownfield Redevelopment Fund. Governor and the Senate included the use this funding source. This funding comes from a statute requiring split of Brownfield Tax Increment Revenues with the Michigan Strategic Fund.  There is sufficient fund revenue to support proposed efforts within both entities.

1,100,000

0

   7.   Increase Authorization for Remedial Settlement Fund.  Governor and the Senate included this funding to be used for one-time contamination remediation and cleanup projects.

1,000,000

0

   8.   Federal Oil and Gas Program Oversight Activities. Governor recommended regulatory oversight responsibilities for underground injection and gas storage wells to be transferred from the Environmental Protection Agency to the State of Michigan and a increase in 3.0 FTEs. The Senate included the recommendation for increased funding, but not the increased FTEs.

370,000

0

   9.   Increase MI Clean Water Plan (one-time). Governor recommended an appropriation of the remaining $290.0 million in bonding authority approved by voters in 2002 under the Great Lakes Water Quality Protection Bond.  The proposal included programs for wastewater infrastructure grants to local government. The Senate did not include the recommendation.  

0

0

10.   Contaminated Site Cleanup (one-time). Governor recommended $20.0 million in funding to be used to support remediation at new high-risk sites that arise throughout the year. The Senate did not include this recommendation.

0

0

11.   Increase Land and Water Resources Fees. Governor recommended a statutory implementation of an increase in land and water resources fees for $5.3 million in funds to support permitting and compliance activities that impact wetlands, lakes and streams, floodplains, critical dunes, and dam safety.  The adjustments also would include a change of 35.0 FTEs. The Senate did not include the recommendation for a fee increase, or the increased FTEs.

0

0

12.   Increase Drinking Water and Industrial Stormwater Operator Certification Fees. Governor recommended statutory implementation of an increase in drinking water and industrial stormwater operator certification fees for $309,400 in funding and increased 1.0 FTE. The Senate did not include the recommendation for a fee increase, or the increased FTEs.

0

0

13.   Increase National Pollutant Discharge Elimination System (NPDES) and Storm Water Fees. Governor recommended a statutory increase in the NPDES and storm water fees for $194,900 in funding, and an increase in 15.0 FTEs. The Senate did not include the recommendation for a fee increase, or the increased FTEs.

0

0

14.   Increase Hazardous Waste Site Identification Fees. Governor recommended statutory implementation of an increase in hazardous waste site identification fees for $100,000 in funding. The Senate did not include the recommendation for a fee increase.

0

0

15.   Remove Unclassified Salary Increases. The Senate did not include the recommendation for a salary increase for unclassified employees.

(25,100)

(6,500)

16.   Remove FY 2020-21 Use of Scrap Tire Authorization. Governor and the Senate removed funding that was included in FY 2020-21 supplemental on a one-time basis.

(3,000,000)

0

17.   Removal of FY 2020-21 One-Time Projects. Governor and the Senate included the removal of eight one-time FY 2020-21 projects, most notably the $2.75 million for lead and copper rule support.

(5,560,000)

(5,560,000)

18.   Economic Adjustments. Includes negative $923,600 Gross and negative $183,500 GF/GP for total economic adjustments, of which an estimated negative $5,867,900 Gross and negative $4,396,600 GF/GP is for legacy retirement costs (pension and retiree health).

(923,600)

(183,500)

19.   Comparison to Governor's Recommendation. The Senate is $340,746,400 Gross and $44,806,500 GF/GP under the Governor.

 

 

 

Total Changes.........................................................................................

$53,911,300

$24,450,000

FY 2021-22 Senate Appropriations Committee Recommendation ..................

$565,270,500

$83,893,900

 

Boilerplate Changes from FY 2020-21 Year-to-Date:

   1.   Reinstated - Communication with the Legislature. Governor removed a prohibition against taking disciplinary action against Department employees who communicate with the Legislature. The Senate retained this section. (Sec. 206)

   2.   New – GF/GP Lapses Report. Governor and Senate extended the reporting deadline, for the State Budget Office to deliver its report on GF/GP lapses in the previous year, to December 31.

   3.   Deleted - Contingency Funds Limits. Governor added contingency funding limits to Federal Funds limited, Private Funds, and State Restricted Funds. The Senate removed this section.  (Sec. 210)

     4.    Deleted/Relocated - Deprived and Depressed Communities. Governor relocated existing language to Sec. 206. The Senate removed this section. (Sec. 215)

   5.   Reinstated - Quarterly Reporting on FTE and Remote Work Status. Governor removed language requiring the Department to provide the Senate and House quarterly reports on the FTE pay status and remote work levels. The Senate retained this section and updated the dates. (Sec. 216)

   6.   Reinstated - Expending on Work Projects. Governor removed language that encouraged the Department to spend all existing work project authorization before using funding from part 1. The Senate retained this section. (Sec. 217)

   7.   Reinstated - Interdepartmental Transfers. Governor removed language that allowed for a concurrent resolution, that if passed by the Legislature, would allow for intertransfer of funds from the Department. The Senate retained this section. (Sec. 218)

   8.   Reinstated - Report Retention. Governor removed language requiring the Department to retain copies of all reports funded by the appropriation, and to comply with laws. The Senate retained this section. (Sec. 219)

   9.   Deleted - Annual Policy Change Report. Governor and Senate removed the requirement that the Department make an annual report of all policy in the prior year. (Sec. 220)

10.   Reinstated - Impacts on Small Businesses. The Governor removed a prohibition against the promulgation of rules that would have a disproportionate impact on small businesses.  The Senate retained this section. (Sec. 221)

11.   Reinstated - Flint Water Crisis Legal Fees. The Governor removed language directing funds for the legal defense of employees named in lawsuits related to the Flint Water Crisis. The Senate retained this section. (Sec. 237).

12.   Deleted - Carryover for Laboratory Service Fees. The Senate removed language that allowed the fees leftover at the end of the year to carry forward into the next fiscal year. (Sec. 301)

13.   Reinstated - Refined Petroleum Fund (RPF) Repayment. The Governor removed a statement of legislative intent that the $70.0 million transferred to the Environmental Protection Fund from the Refined Petroleum Fund in FY 2006-07 be repaid. The Senate retained this section. (Sec. 305)


14.   Reinstated - Refined Petroleum Cleanup Program. The Governor removed a site list reporting requirement for all refined petroleum product cleanup program projects. The Senate retained this section. (Sec. 306)

15.   New - Work Project Authority for Premcor Settlement. Governor and Senate included statutory work language that allows the Department to manage the Premcor legal settlement. (Sec. 312)

16.   Deleted - Authority to Use Funds in Settlements. Governor recommended authorizing the use of Natural Resources Damages Fund and the Environmental Response Fund to provide funding for actions by the Department when authorized by a court. The Senate removed this section. (Sec. 315)

17.   Deleted - Scrap Tire Grants. Governor and Senate removed this section that included $3.0 million in grants for a county with a specific population. (Sec. 902)

18.   Reinstated - Well Water Testing Grants. Governor recommended removing this one-time appropriation. The Senate retained this section and modified the language. (Sec. 1005)

19.   Reinstated - Cooperative Lakes Monitoring Program. Governor recommended removing this one-time appropriation. The Senate retained this section and specified funding by the Water Resource Division. (Sec. 1007)

20.   Reinstated - Watershed Council Grants. Governor recommended removing this one-time appropriation. The Senate retained this section. (Sec. 1013)

21.   New - Work Project Authority for Dam Safety. Governor recommended language authorizing the Dam Safety Emergency Fund. (Sec. 1005). The Senate included the recommendation but modified the language and relocated the section. (Sec. 1009)

22.   New - Grants for High Water Emergency Infrastructure. Governor recommended this section for the high water infrastructure grant program. The Senate included the recommendation but modified the scope of the program for a focus on infrastructure and emergency response with a reduction in funding. (Sec. 1006)

23.   Deleted- Work Project Authority for Michigan Clean Water Plan. Governor recommended this section to advocate for statutory work project language to ensure the fund does not lapse at the end of the fiscal year into the General Fund. The Senate removed this section. (Sec. 1007)

24.   New - Prior Grant Awards Not Disqualifying Applicants. The Senate recommended language that allowed that prior receipt of a grant award does not disqualify applicants from future eligibility.

25.   New - WUAC Recommendations. The Senate recommended language that allowed that specifies the use and allocation of the one-time funding for the WUAC 2020 recommendations.

 

 

Date Completed:  5-6-21                                                               Fiscal Analyst:  Ben Dawson

 

 

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.