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SB-898, As Passed Senate, June 17, 2026
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SUBSTITUTE FOR
SENATE BILL NO. 898
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 19608a, 19608b, 19609, 19610, 19610a, 19611,
19612, 19613, 20108b, and 21506a (MCL 324.19608a, 324.19608b,
324.19609, 324.19610, 324.19610a, 324.19611, 324.19612, 324.19613,
324.20108b, and 324.21506a), section 19608a as amended and section
19608b as added by 2016 PA 473, sections 19609, 19610, 19611, and
19612 as amended and section 19610a as added by 2016 PA 475,
section 19613 as added by 1998 PA 288, section 20108b as amended by
2016 PA 476, and section 21506a as amended by 2017 PA 134, and by
adding part 192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 192 1
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BROWNFIELD REDEVELOPMENT 1
Sec. 19201. As used in this part: 2
(a) "Baseline environmental assessment" means that term as 3
defined in sections 20101 and 21302. 4
(b) "Brownfield project" or "project" means the entire project 5
to be undertaken, including, but not limited to, the actual site 6
remediation and its resulting economic development. 7
(c) "Corrective action" means that term as defined in section 8
21302. 9
(d) "Department" means the department of environment, Great 10
Lakes, and energy. 11
(e) "Due care activities" means those response activities 12
conducted under sections 20107a and 21304c. 13
(f) "Eligible activities" includes any of the following for 14
projects with funding allocated under the program: 15
(i) Baseline environmental assessment activities. 16
(ii) Investigations. 17
(iii) Due care activities. 18
(iv) Response activities. 19
(v) Removal and closure of underground storage tanks in 20
accordance with parts 211 and 213. 21
(vi) Removal of universal waste, PCB-ballasts, transfers, 22
capacitors, refrigerant gases, batteries, chemical, mercury 23
switches, or other hazardous materials. 24
(vii) Industrial cleaning. 25
(viii) Removal and disposal of lake or river sediments that 26
exceed part 201 cleanup criteria for unrestricted residential use 27
from or related to an economic development project, if the upland 28
property is a facility or would become a facility as the result of 29
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disposition of dredged spoils. 1
(ix) The following activities, provided that the total cost of 2
these activities does not exceed the total cost of project-related 3
activities identified in subparagraphs (i) to (viii): 4
(A) Removal of uncontaminated surficial material and debris 5
from the eligible property, provided it was not generated or 6
accumulated by the applicant or the developer, including, but not 7
limited to tires, furniture, building debris, appliances, abandoned 8
vehicles, general refuse, and localized buried debris not 9
associated with landfills or dumps. 10
(B) Demolition and lead, asbestos, or mold abatement that is 11
not a response activity. 12
(g) "Eligible property" for projects with funding allocated 13
under the program means property that is known or suspected to be a 14
facility under part 201 or a site or property under part 213 and 15
that was used or is currently being used for commercial, 16
industrial, public, or residential purposes. 17
(h) "Facility" means that term as defined in section 20101. 18
(i) "Local unit of government" means a county, city, village, 19
or township, or an agency of a county, city, village, or township; 20
or a brownfield redevelopment authority, an economic development 21
corporation, or an authority or other public body created by or in 22
accordance with state law. 23
(j) "Measurable economic benefit" means the permanent jobs 24
that are created or retained, the capital invested, the increased 25
tax base, or other quantifiable benefits to the applicable county, 26
city, village, or township where the project is located. 27
(k) "Measurable environmental benefit" means the extent that 28
the requirements of part 201 or 213, or both, are advanced at a 29
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brownfield project where environmental conditions inhibit the 1
site's redevelopment or reuse. 2
(l) "Program" means the brownfield redevelopment grant and 3
revolving loan program created under section 19205. 4
(m) "Response activity" means that term as defined in section 5
20101 or corrective action as that term is defined in section 6
21302, and includes, but is not limited to, activities that are 7
more protective of the public health, safety, and welfare and the 8
environment than required by section 20107a or 21304c. 9
Sec. 19203. The department shall expend money from the 10
following funds, on appropriation, to provide grants and loans 11
under the program: 12
(a) The clean Michigan initiative bond fund created in section 13
19606. 14
(b) The revitalization revolving loan fund under section 15
20108a. 16
(c) The state brownfield redevelopment fund created in section 17
8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 18
125.2658a. 19
(d) Any other funding source, as appropriate. 20
Sec. 19205. (1) The department shall create a brownfield 21
redevelopment grant and revolving loan program for the purpose of 22
making grants and loans to local units of government for eligible 23
activities at eligible properties with redevelopment potential. 24
(2) The department shall not issue a grant or loan under the 25
program unless all of the following conditions are met: 26
(a) The applicant is a local unit of government. 27
(b) The applicant demonstrates to the department the 28
capability to administer and manage the grant or loan. 29
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(c) The applicant demonstrates to the department that there is 1
an identifiable source of funds for the future maintenance and 2
operation of the activities funded with money from the program, if 3
appropriate. 4
(d) Within the last 24 months, the applicant has successfully 5
undergone an audit conducted in accordance with generally accepted 6
auditing standards or an emergency manager has been appointed for 7
the applicant under the local financial stability and choice act, 8
2012 PA 436, MCL 141.1541 to 141.1575. 9
(e) Within the last 24 months, the department has not revoked 10
or terminated a grant to the applicant and the department has not 11
determined that the applicant demonstrated an inability to manage a 12
grant. 13
(f) The applicant is not responsible for causing a release or 14
threat of release under part 201 or part 213 at the site proposed 15
for grant or loan funding, except as provided in section 19208(4). 16
Sec. 19207. Grants and loans issued under the program must 17
meet all of the following conditions: 18
(a) Except as provided in subdivision (b), a recipient is not 19
eligible to receive more than the following: 20
(i) One grant per project, not to exceed $2,000,000.00 per 21
grant. 22
(ii) One loan per project, not to exceed $2,000,000.00 per 23
loan. 24
(b) Brownfield projects that have significant economic and 25
environmental benefit may be considered for more than 1 grant or 26
loan in separate fiscal years, provided that the loan or grant 27
agreement includes project-specific benchmarks for eligible 28
activities and failure to satisfy a benchmark would terminate the 29
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project's eligibility for additional grant or loan funding, as 1
applicable. 2
(c) The department may award a grant only if the department 3
determines that all of the following apply: 4
(i) The property is an eligible property. 5
(ii) The proposed development of the property is expected to 6
result in measurable economic benefit in excess of the grant amount 7
requested by the applicant. 8
(iii) The proposed project is in, or will result in, compliance 9
with all applicable state laws and rules. 10
(d) The department may award a loan only if the department 11
determines that all of the following apply: 12
(i) The property is known or suspected to be an eligible 13
property. 14
(ii) The property has economic development potential based on 15
the applicant's planned use of the property. 16
(iii) The proposed project is in, or will result in, compliance 17
with all applicable state laws and rules. 18
Sec. 19208. (1) A grant or loan may be used to fund due care 19
and assessment activities necessary to facilitate redevelopment if 20
the party responsible for an activity causing a release is not the 21
owner or operator of the proposed redevelopment. 22
(2) A loan may be used to fund response activities if both of 23
the following are met, as applicable: 24
(a) A party responsible for an activity causing a release is 25
not the seller and is not or will not be the owner or operator of 26
the property to receive funding. 27
(b) The recipient of the funding can show that response 28
activities are appropriate in relation to the redevelopment. 29
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(3) A grant may be used to fund response activities if all of 1
the conditions under subsection (4) are met, and the department 2
determines that the response activities are in the public interest. 3
(4) A loan may be used to fund appropriate response activities 4
related to redevelopment and due care activities necessary to 5
facilitate redevelopment of the property if the party responsible 6
for an activity causing a release at the eligible property meets 7
both of the following: 8
(a) Is a local unit of government. 9
(b) Has a proposed redevelopment for the property with 10
measurable economic benefit. 11
Sec. 19209. (1) An application for a grant or loan from the 12
program must be made on a form and in a manner prescribed by the 13
department. The department may require the applicant to provide any 14
information reasonably necessary to allow the department to make a 15
determination required by this part. 16
(2) The department shall accept, and consider for approval, 17
applications for grants and loans throughout the year. The 18
department shall make final application decisions not later than 90 19
days after receipt of a complete application. A complete 20
application must include all of the following: 21
(a) The location of the property. 22
(b) The current use and ownership of the property. 23
(c) The relevant history and the past use and ownership of the 24
property. 25
(d) The environmental condition of the property. 26
(e) A description of the proposed eligible activities and the 27
reasons the activities are necessary. 28
(f) An itemized budget for the proposed eligible activities. 29
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(g) A schedule for the completion of the proposed eligible 1
activities. 2
(h) A description of the proposed project and measurable 3
economic benefit. 4
(i) If the property is not owned by the applicant, a draft of 5
an enforceable agreement between the property owner and the 6
applicant that commits the property owner to cooperate with the 7
applicant, including a commitment to allow access to the property 8
to complete, at a minimum, the proposed eligible activities. 9
(j) For loans, a resolution from the governing body of the 10
applicant committing to repayment of the loan. If the applicant is 11
a sub-unit of a local unit of government, the resolution required 12
under this subdivision must be from the county, city, village, or 13
township under which the sub-unit was formed. 14
(k) A letter or resolution from the city, township, or village 15
where the project will be developed that demonstrates support for 16
the brownfield project and that the brownfield project complies 17
with all local zoning and planning ordinances. 18
(l) Any other relevant information the department requires. 19
(3) The department shall review a completed application using 20
the following considerations: 21
(a) Whether the proposed project is authorized by this part. 22
(b) Whether the proposed project is consistent with the local 23
planning and zoning for the area in which the proposed project is 24
located. 25
(c) Whether the proposed project provides measurable 26
environmental benefit. 27
(d) Whether the proposed project provides a measurable 28
economic benefit. 29
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(e) Whether the proposed project will significantly contribute 1
to the local unit of government's economic and community 2
redevelopment or the revitalization of adjacent neighborhoods. 3
(f) The viability and schedule of the proposed redevelopment. 4
(g) The level of public and private commitment and other 5
resources available for the proposed project. 6
(h) How the proposed project relates to a broader economic and 7
community development plan for the local unit of government. 8
(i) Whether the proposed project is likely to be undertaken 9
without assistance from this state. 10
(j) Other criteria that the department considers relevant. 11
Sec. 19211. (1) To receive grant or loan funds, approved 12
applicants must enter into a grant or loan agreement with the 13
department. At a minimum, the grant or loan agreement must contain 14
all of the following: 15
(a) The eligible activities to be undertaken with grant or 16
loan funds. 17
(b) The budget for utilizing the grant or loan funds. 18
(c) An implementation schedule for the eligible activities. 19
(d) Reporting requirements, including, at a minimum, the 20
following: 21
(i) The grant or loan recipient shall submit progress status 22
reports to the department on a form and in a manner prescribed, and 23
at a frequency determined, by the department. 24
(ii) The grant or loan recipient shall provide a final report 25
after completing the grant- or loan-funded activities within a time 26
frame determined by the department. 27
(e) Other provisions as considered appropriate by the 28
department. 29
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(2) If the property is not owned by the grant or loan 1
recipient, an executed access agreement that meets the requirements 2
of section 19209(2)(i) must be provided before the approval of a 3
work plan. 4
(3) Unless otherwise approved by the director of the 5
department, only activities carried out and costs incurred after 6
execution of a grant or loan agreement are eligible. 7
(4) A grant or loan recipient shall prepare and submit to the 8
department for approval a work plan that is consistent with the 9
grant or loan agreement. A work plan must identify the eligible 10
activities and provide details on how the eligible activities will 11
be implemented. All eligible activities must be consistent with an 12
approved grant or loan work plan. 13
(5) Grant funds must be disbursed on a reimbursement basis on 14
receipt of appropriate documentation. Loan funds must be disbursed 15
in draws based on an approved work plan, and supporting 16
documentation must be submitted after expenses are incurred. 17
(6) The department shall specify documentation requirements 18
for grants and loans on a form prescribed for requesting 19
reimbursement or draws. 20
Sec. 19213. Before making a grant or loan under the program, 21
the department shall consider the extent to which the making of the 22
grant or loan contributes to the achievement of a balanced 23
distribution of grants and loans throughout this state. 24
Sec. 19215. (1) A recipient of a grant or loan granted or 25
issued under the program shall do both of the following: 26
(a) Keep an accounting of the money spent on the project or 27
facility in a generally accepted manner. An accounting under this 28
subdivision is subject to a postaudit. 29
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(b) Obtain authorization from the department before 1
implementing a change that significantly alters the proposed 2
project. 3
(2) The department may revoke a grant or loan granted or 4
issued under the program or withhold payment if the proposed 5
project changes, is delayed, or is not implemented, or if the 6
recipient fails to comply with the terms and conditions of the 7
grant or loan agreement or with the requirements of this part or 8
the rules promulgated under this part, or with other applicable law 9
or rules. If a grant or loan is revoked, the department may recover 10
all funds awarded. 11
(3) To ensure timely completion of a project and receipt of 12
all project deliverables, which are defined in the work plan and 13
require documentation and reporting, the department may withhold up 14
to 10% of the grant or loan amount until the project is completed. 15
(4) If an approved applicant fails to sign a grant or loan 16
agreement within 90 days after receipt of a written grant or loan 17
offer by the department, the department may cancel the grant or 18
loan offer. The applicant may not appeal or contest a cancellation 19
under this subsection. 20
(5) The department may terminate a grant or loan agreement and 21
require immediate repayment of the grant or loan if the recipient 22
uses grant or loan funds for any purpose other than for the 23
approved activities specified in the grant or loan agreement. The 24
department shall provide the recipient written notice of the 25
termination 30 days before the termination. 26
Sec. 19217. (1) A loan issued under the program must be made 27
on the following terms: 28
(a) A loan interest rate of not more than 50% of the prime 29
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rate as determined by the department as of the date of approval of 1
the loan. 2
(b) Loan recipients shall repay loans in equal annual 3
installments of principal and interest beginning not later than 5 4
years after the first draw of the loan and concluding not later 5
than 15 years after the first draw of the loan. 6
(2) On request of a loan recipient and a showing of financial 7
hardship related to the project that was financed in whole or in 8
part by the loan, the department may renegotiate the terms of any 9
outstanding loan, including the length of the loan, interest rate, 10
and repayment terms. The department shall not reduce or eliminate 11
the amount of the outstanding loan principal. The department shall 12
report to the legislature the number of loans refinanced under this 13
subsection, the local unit of government or authority responsible 14
for each loan refinanced, and the change in the terms of the loan, 15
as appropriate. This information may be included in the report 16
prepared by the department under section 19220. 17
(3) Repayments of principal and interest must be deposited in 18
1 of the following funds based on programmatic need: 19
(a) The clean Michigan initiative bond fund created in section 20
19606. 21
(b) The revitalization revolving loan fund under section 22
20108a. 23
(c) The state brownfield redevelopment fund created in section 24
8a of the brownfield redevelopment financing act, 1996 PA 381, MCL 25
125.2658a. 26
Sec. 19219. The department and the department of attorney 27
general may recover costs expended under this part for corrective 28
actions, response activities, and all other recoverable costs under 29
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part 201 or 213 from the parties that are responsible for an 1
activity causing a release under part 201 or 213. Actions to 2
recover costs must be conducted in the manner provided for in part 3
201 or 213. 4
Sec. 19220. Not later than December 31, 2026 and by December 5
31 each year thereafter, the department shall submit a list of the 6
projects financed under this part during the previous fiscal year 7
to the governor, the standing committees of the house of 8
representatives and the senate that primarily address issues 9
pertaining to the protection of natural resources and the 10
environment, and the subcommittees of the house of representatives 11
and the senate on natural resources and environment, Great Lakes, 12
and energy. The list must include the following information: 13
(a) The name and location of the project. 14
(b) The nature of the project. 15
(c) The amount of money allocated to the project. 16
(d) The county in which the project is located. 17
(e) Other information considered relevant by the department. 18
Sec. 19221. (1) The governor may include in the governor's 19
annual budget recommendations to the legislature the level of 20
funding necessary to implement this part. 21
(2) Money required to implement the programs described under 22
this part may be appropriated from any source the legislature 23
considers necessary to implement the requirements of this part. 24
Sec. 19223. The department may promulgate rules in accordance 25
with the administrative procedures act of 1969, 1969 PA 306, MCL 26
24.201 to 24.328, to implement this part. 27
Sec. 19608a. (1) The department shall create a clean Michigan 28
initiative grant and revolving loan program for the purpose of 29
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making grants and loans to local units of government under section 1
19608(1)(a)(iv) for eligible activities at eligible properties with 2
redevelopment potential. 3
(2) Grants provided under the clean Michigan initiative grant 4
and revolving loan program that are used solely to determine 5
whether a property is a site or a facility and, if so, to 6
characterize the nature and extent of the contamination by means of 7
an assessment or investigation shall must be issued only if all of 8
the following conditions are met: 9
(a) The characterization of the nature and extent of 10
contamination includes an estimate of response activity costs in 11
relation to the value of the property in an uncontaminated state 12
and identifies future potential limitations on the use of the 13
property based upon on current environmental conditions. 14
(b) The property has demonstrable economic development 15
potential. This subdivision does not require a specific development 16
proposal to be identified. 17
(3) The department shall not make a grant or a loan under the 18
clean Michigan initiative grant and revolving loan program unless 19
all of the following conditions are met: 20
(a) The applicant demonstrates that the proposed project is 21
in, or will result in, compliance with all applicable state laws 22
and rules. 23
(b) The applicant demonstrates to the department the 24
capability to carry out the proposed project. 25
(c) The applicant demonstrates to the department that there is 26
an identifiable source of funds for the future maintenance and 27
operation of the activities funded with money from the fund, if 28
appropriate. 29
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(d) Within the last 24 months, the applicant has successfully 1
undergone an audit conducted in accordance with generally accepted 2
auditing standards or an emergency manager has been appointed for 3
the applicant under the local financial stability and choice act, 4
2012 PA 436, MCL 141.1541 to 141.1575. 5
(e) Within the last 24 months, the department has not revoked 6
or terminated a grant to the applicant and the administering state 7
department has not determined that the applicant demonstrated an 8
inability to manage a grant. 9
(4) Notwithstanding any other provision of this section, for 10
grant or loan projects approved for funding under section 11
19608(1)(a)(iv) on or after the effective date of the amendatory act 12
that added this subsection, this section does not apply, and the 13
department shall apply the criteria used for projects described in 14
part 192. 15
Sec. 19608b. (1) With respect to the grants and loans under 16
section 19608(1)(a)(iv), all of the following conditions apply: 17
(a) An applicant must be a local unit of government. 18
(b) A recipient is not eligible to receive more than the 19
following: 20
(i) Except as provided in subparagraphs (iii) and (iv), 1 grant 21
per year, not to exceed $1,000,000.00 per grant. 22
(ii) Except as provided in subparagraphs (iii) and (iv), 1 loan 23
per year, not to exceed $1,000,000.00 per loan. 24
(iii) Brownfield projects that have significant economic and 25
environmental benefit may be considered for more than 1 grant or 26
loan over consecutive years, provided that the loan or grant 27
agreement includes project-specific benchmarks for eligible 28
activities and failure to satisfy a benchmark would terminate the 29
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project's eligibility for additional grant or loan funding, as 1
applicable. 2
(iv) A local unit of government may be considered for and 3
awarded more than 1 grant or loan in a single year relating to 4
multiple unrelated brownfield projects if the projects are 5
determined to have significant environmental or economic benefits 6
to the recipient's municipality or region. 7
(c) Except for a grant described in section 19608a(2), the 8
department may award a grant only if it the department determines 9
that both of the following apply: 10
(i) The property is an eligible property. 11
(ii) The proposed development of the property is expected to 12
result in measurable economic benefit in excess of the grant amount 13
requested by the applicant. 14
(d) The department may award a loan only if it the department 15
determines that both of the following apply: 16
(i) The property is known or suspected to be an eligible 17
property. 18
(ii) The property has economic development potential based on 19
the applicant's planned use of the property. 20
(e) The department may approve funding for response activities 21
that are more protective of the public health, safety, and welfare 22
and the environment than required by section 20107a or 21304c if 23
those activities provide public health or environmental benefit. In 24
its review of a work plan that includes activities that are more 25
protective of the public health, safety, and welfare and the 26
environment, the department may consider, but is not limited to, 27
all of the following: 28
(i) Proposed new land use and reliability of restrictions to 29
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prevent exposure to contamination. 1
(ii) Cost of implementation activities minimally necessary to 2
satisfy due care requirements, the incremental cost of response 3
activities relative to the cost of activities minimally necessary 4
to satisfy due care requirements, and the total cost of all 5
response activities. 6
(iii) Long-term obligations associated with leaving 7
contamination in place and the value of reducing or eliminating 8
these obligations. 9
(f) A grant or loan shall must not be used to fund response 10
activities that benefit a party that is responsible for an activity 11
causing a release at the eligible property, except that a loan may 12
be used to fund appropriate response activities related to 13
redevelopment and due care activities necessary to facilitate 14
redevelopment of the property if the party that is responsible for 15
an activity causing a release at the eligible property meets all of 16
the following: 17
(i) Is a local unit of government. 18
(ii) Has a proposed redevelopment for the property with 19
measurable economic benefit. 20
(iii) Provides a minimum of 50% local matching funds for the 21
project. 22
(g) A grant or loan may be used to fund due care activities 23
necessary to facilitate redevelopment if the party responsible for 24
an activity causing a release is not the developer of proposed 25
redevelopment. 26
(h) A loan may be used to fund response activities if both of 27
the following are met: 28
(i) A party responsible for an activity causing a release is 29
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neither not the seller nor the or developer of the property to 1
receive funding. 2
(ii) The recipient can show that response activities are 3
appropriate in relation to the redevelopment. 4
(2) Notwithstanding any other provision of this section, for 5
grant or loan projects approved for funding under section 6
19608(1)(a)(iv) on or after the effective date of the amendatory act 7
that added this subsection, subsection (1) does not apply, and the 8
department shall apply the criteria used for projects described in 9
part 192. 10
Sec. 19609. (1) An application for a grant or a loan from the 11
fund shall must be made on a form or in a format prescribed by the 12
administering state department. The administering state department 13
may require the applicant to provide any information reasonably 14
necessary to allow the administering state department to make a 15
determination required by this part. 16
(2) Of the funds to be used to provide grants and loans under 17
section 19608(1)(a)(iv), the following apply: 18
(a) The department shall accept, and consider for approval, 19
applications for grants and loans throughout the year. 20
(b) The department shall make final application decisions 21
within not later than 90 days after receipt of a complete grant or 22
loan application. 23
(c) A complete application includes all of the following: 24
(i) A description of the proposed eligible activities and the 25
reasons they the activities should be funded. 26
(ii) An itemized budget for the proposed eligible activities. 27
(iii) A schedule for the completion of the proposed eligible 28
activities. 29
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(iv) The location of the property. 1
(v) The current ownership and ownership history of the 2
property. 3
(vi) The relevant history of the use of the property. 4
(vii) The current use of the property. 5
(viii) The existing and proposed future zoning of the property. 6
(ix) If the property is not owned by the applicant, a draft of 7
an enforceable agreement between the property owner and the 8
applicant that commits the property owner to cooperate with the 9
applicant, including a commitment to allow access to the property 10
to complete, at a minimum, the proposed eligible activities. 11
(x) A description of the property's economic redevelopment 12
potential. 13
(xi) For loans, a resolution from the governing body of the 14
applicant committing to repayment of the loan. 15
(xii) A letter from the chief executive officer or highest 16
ranking appointed official indicating that the local unit of 17
government supports the brownfield project and that the brownfield 18
project complies with all local zoning and planning ordinances. 19
(xiii) Any other relevant information the department requires. 20
(3) Notwithstanding any other provision of this section, for 21
grant or loan projects approved for funding under section 22
19608(1)(a)(iv) on or after the effective date of the amendatory act 23
that added this subsection, this section does not apply, and the 24
department shall apply the criteria used for projects described in 25
part 192. 26
Sec. 19610. (1) Upon On receipt of a grant or loan 27
application, for funding provided under section 19608(1)(a)(iv), the 28
department shall review the application based on the following 29
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considerations: 1
(a) Whether the brownfield project proposed to be funded is 2
authorized by this part. 3
(b) Whether the brownfield project is consistent with the 4
local planning and zoning for the area in which the project is 5
located. 6
(c) Whether the brownfield project provides measurable 7
environmental benefit. 8
(d) Whether the brownfield project provides measurable 9
economic benefit or will significantly contribute to the local unit 10
of government's economic and community redevelopment or the 11
revitalization of adjacent neighborhoods. 12
(e) The viability of the redevelopment plan. 13
(f) The level of public and private commitment and other 14
resources available for the project. 15
(g) How the brownfield project relates to a broader economic 16
and community development plan for the local unit of government as 17
a whole. 18
(h) Other criteria that the department considers relevant. 19
(2) The department shall issue grants under section 20
19608(1)(a)(iv) for brownfield projects that the department 21
determines meet the requirements of this part and will contribute 22
to the revitalization of underutilized properties. 23
(3) Notwithstanding any other provision of this section, for 24
grant or loan projects approved for funding under section 25
19608(1)(a)(iv) on or after the effective date of the amendatory act 26
that added this subsection, this section does not apply, and the 27
department shall apply the criteria used for projects described in 28
part 192. 29
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Sec. 19610a. (1) For the funds to be used to provide grants 1
and loans under section 19608(1)(a)(iv), all of the following apply: 2
(a) To receive grant or loan funds, approved applicants must 3
enter into a grant or loan agreement with the department. At a 4
minimum, the grant or loan agreement shall must contain all of the 5
following: 6
(i) The approved eligible activities to be undertaken with 7
grant or loan funds. 8
(ii) An implementation schedule for the approved eligible 9
activities. 10
(iii) Reporting requirements, including, at a minimum, the 11
following: 12
(A) The grant or loan recipient shall submit progress status 13
reports to the department during the implementation of the 14
brownfield project that include documentation of project costs and 15
expenditures, at a frequency determined by the department. 16
(B) The grant or loan recipient shall provide a final report 17
upon on completion of the grant- or loan-funded activities within a 18
time frame determined by the department. 19
(iv) If the property is not owned by the grant or loan 20
recipient, an executed agreement that meets the requirements of 21
section 19609(2)(c)(ix). 22
(v) When entering into a loan agreement, the loan recipient 23
shall provide financial assurance of repayment of the loan 24
including pledges of revenue sharing, escrow account, letter of 25
credit, or other acceptable mechanism negotiated with the 26
department. Use of real property as a means to secure a loan is not 27
considered an acceptable mechanism. The department is authorized to 28
include in the loan agreement a provision that permits the release 29
22
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
of the financial assurance in favor of a pledge of the right of 1
first refusal of the tax increment revenue to the department under 2
the brownfield redevelopment financing act, 1996 PA 381, MCL 3
125.2651 to 125.2672, 125.2670, if the brownfield project has been 4
substantially completed and the annual tax increment being captured 5
relative to the brownfield project is equal to or greater than 125% 6
of the annual loan reimbursement payment. 7
(vi) Other provisions as considered appropriate by the 8
department. 9
(b) All eligible activities must be consistent with an 10
approved grant or loan work plan. 11
(c) Unless otherwise approved by the director of the 12
department, only activities carried out and costs incurred after 13
execution of a grant or loan agreement are eligible. 14
(d) Grant funds shall be disbursed on a reimbursement basis 15
upon receipt of appropriate documentation. 16
(e) Loan funds shall be disbursed in draws based on an 17
approved work plan, and supporting documentation must be submitted 18
after expenses are incurred. 19
(f) The department shall specify documentation requirements 20
for grants and loans on a form prescribed for requesting 21
reimbursement or draws. 22
(2) Notwithstanding any other provision of this section, for 23
grant or loan projects approved for funding under section 24
19608(1)(a)(iv) on or after the effective date of the amendatory act 25
that added this subsection, subsection (1) does not apply, and the 26
department shall apply the criteria used for projects described in 27
part 192. 28
Sec. 19611. (1) Prior to Before making a grant or loan with 29
23
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
money from the fund, the administering state department shall 1
consider the extent to which the making of the grant or loan 2
contributes to the achievement of a balanced distribution of grants 3
and loans throughout the state. 4
(2) In determining whether a grant or a loan is appropriate 5
under section 19608(1)(a)(iv), the department shall consider whether 6
the project is likely to be undertaken without state assistance, 7
the availability of state funds from other sources, the degree of 8
private sector participation in the type of project under 9
consideration, and other factors considered important by the 10
department. 11
(3) Notwithstanding any other provision of this section, for 12
grant or loan projects approved for funding under section 13
19608(1)(a)(iv) on or after the effective date of the amendatory act 14
that added this subsection, this section does not apply, and the 15
department shall apply the criteria used for projects described in 16
part 192. 17
Sec. 19612. (1) A recipient of a grant or a loan made with 18
money from the fund shall do both of the following: 19
(a) Keep an accounting of the money spent on the project or 20
facility in a generally accepted manner. The accounting is subject 21
to a postaudit. 22
(b) Obtain authorization from the administering state 23
department before implementing a change that significantly alters 24
the proposed project. 25
(2) The administering state department may revoke a grant or a 26
loan made with money from the fund or withhold payment if the 27
recipient fails to comply with the terms and conditions of the 28
grant or loan agreement or with the requirements of this part or 29
24
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
the rules promulgated under this part, or with other applicable law 1
or rules. If a grant or loan is revoked, the administering state 2
department may recover all funds awarded. 3
(3) The administering state department may withhold a grant or 4
a loan until the administering state department determines that the 5
recipient is able to proceed with the proposed project. 6
(4) To assure ensure timely completion of a project, the 7
administering state department may withhold 10% of the grant or 8
loan amount until the project is complete. 9
(5) If an approved applicant fails to sign a grant or loan 10
agreement within 90 days after receipt of a written grant or loan 11
offer by the administering state department, the administering 12
state department may cancel the grant or loan offer. The applicant 13
may not appeal or contest a cancellation pursuant to under this 14
subsection. 15
(6) The administering state department may terminate a grant 16
or loan agreement and require immediate repayment of the grant or 17
loan if the recipient uses grant or loan funds for any purpose 18
other than for the approved activities specified in the grant or 19
loan agreement. The administering state department shall provide 20
the recipient written notice of the termination 30 days prior to 21
before the termination. 22
(7) A loan made with money in the fund must be made on the 23
following terms: 24
(a) A loan interest rate of not more than 50% of the prime 25
rate as determined by the administering state department as of the 26
date of approval of the loan. 27
(b) Loan recipients shall repay loans in equal annual 28
installments of principal and interest beginning not later than 5 29
25
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
years after the first draw of the loan and concluding not later 1
than 15 years after the first draw of the loan. 2
(c) A loan recipient shall enter into a loan agreement with 3
the administering state department. 4
(d) Upon On default of a loan, as determined by the 5
administering state department, or upon on the request of the loan 6
recipient as a method to repay the loan, the department of treasury 7
shall withhold from state payments payable to the loan recipient 8
amounts consistent with the repayment schedule in the loan 9
agreement until the loan is repaid. The department of treasury 10
shall deposit the withheld or collected money into the fund until 11
the loan is repaid. 12
(8) Upon On request of a loan recipient and a showing of 13
financial hardship related to the project that was financed in 14
whole or in part by the loan, the administering state department 15
may renegotiate the terms of any outstanding loan, including the 16
length of the loan, the interest rate, and the repayment terms. 17
However, the administering state department shall not reduce or 18
eliminate the amount of the outstanding loan principal. The 19
department shall report to the legislature the number of loans 20
refinanced under this subsection, the local unit of government or 21
authority responsible for each loan refinanced, and the change in 22
the terms of the loan, as appropriate. This information may be 23
included in the report prepared by the department under section 16 24
of the brownfield redevelopment financing act, 1996 PA 381, MCL 25
125.2666. 26
(9) Loan payments and interest shall must be deposited in the 27
fund. 28
(10) Notwithstanding any other provision of this section, for 29
26
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
grant or loan projects approved for funding under section 1
19608(1)(a)(iv) on or after the effective date of the amendatory act 2
that added this subsection, this section does not apply, and the 3
department shall apply the criteria used for projects described in 4
part 192. 5
Sec. 19613. (1) Of the funds to be used to provide grants and 6
loans under section 19608(1)(a)(iv), all of the following conditions 7
apply: 8
(a) A recipient of a grant shall receive not more than 1 grant 9
per year not to exceed $1,000,000.00 per grant. 10
(b) A recipient of a loan shall receive a maximum of 1 loan 11
per year not to exceed $1,000,000.00 per loan. 12
(c) A grant shall must be awarded only if the department 13
determines that both of the following apply: 14
(i) The property is a facility as defined in section 20101. 15
(ii) The proposed development of the property will result in 16
measurable economic benefit in excess of the grant amount requested 17
by the applicant. 18
(d) A loan shall must be awarded only if the department 19
determines that both of the following apply: 20
(i) The property is a facility as defined in section 20101 or 21
is suspected of being a facility. 22
(ii) The property has economic development potential based on 23
the applicant's planned use of the property. 24
(2) Notwithstanding any other provision of this section, for 25
grant or loan projects approved for funding under section 26
19608(1)(a)(iv) on or after the effective date of the amendatory act 27
that added this subsection, subsection (1) does not apply, and the 28
department shall apply the criteria used for projects described in 29
27
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
part 192. 1
Sec. 20108b. (1) The department shall create a revitalization 2
revolving loan program for the purpose of making loans to certain 3
local units of government to provide for eligible activities at 4
certain properties in order to promote economic redevelopment. 5
(2) Loan funds from the revitalization revolving loan program 6
created in subsection (1) shall must be issued for the purposes 7
provided in and utilizing the criteria provided in sections 19608a 8
through 19613.part 192. 9
(3) Loan Except as otherwise provided in section 19217(3), the 10
payments and interest shall must be deposited back into the 11
revitalization revolving loan fund created in section 20108a. 12
Sec. 21506a. (1) The refined petroleum fund is created within 13
in the state treasury. 14
(2) The state treasurer may receive money or other assets from 15
any source for deposit into the refined petroleum fund. The state 16
treasurer shall direct the investment of the refined petroleum fund 17
. The state treasurer shall and credit to the refined petroleum 18
fund interest and earnings from refined petroleum fund investments. 19
(3) Money in the refined petroleum fund at the close of the 20
fiscal year remains in the refined petroleum fund and does not 21
lapse to the general fund. 22
(4) Money from the refined petroleum fund shall must be 23
expended, upon on appropriation, only for 1 or more of the 24
following purposes: 25
(a) Corrective actions performed by the department pursuant to 26
under section 21320. 27
(b) The legacy release program created in section 21519a. 28
(c) The reasonable costs of the department in administering 29
28
RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
the refined petroleum fund and implementing part 213. 1
(d) Not more than $5,000,000.00 annually for petroleum product 2
inspection programs under both of the following: 3
(i) The weights and measures act, 1964 PA 283, MCL 290.601 to 4
290.635. 5
(ii) The motor fuels quality act, 1984 PA 44, MCL 290.641 to 6
290.650d. 7
(e) Not more than $3,000,000.00 annually for the bureau of 8
fire services and office of the state fire marshal, storage tank 9
division, in the department of licensing and regulatory affairs. 10
(f) Reimbursement by the authority to local units of 11
government and county road commissions for the costs of corrective 12
action to manage, relocate, or dispose of any media contaminated by 13
regulated substances left in place within a public highway pursuant 14
to under section 21310a if all of the following occur: 15
(i) The local unit of government or county road commission has 16
submitted to the authority a claim for reimbursement on a form 17
created by the authority. 18
(ii) The claim for reimbursement is for reasonable and 19
necessary eligible corrective action costs determined by the 20
administrator pursuant to under section 21515(2) to (10). 21
(iii) The amount of reimbursement is not more than $200,000.00 22
per claim. 23
(g) Not more than $5,000,000.00 annually for the department to 24
provide grants and loans in accordance with part 196 192 to 25
facilitate brownfield redevelopment at part 213 properties. Money 26
shall must not be provided under this subsection to fund the 27
performance of response activities at a part 213 property to 28
address contamination that is solely attributable to a release 29
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RMH S06647'26 (S-1)_SB898_APS_1 dsu3ke
regulated under part 201. 1
(h) The permanent closure of an underground storage tank 2
system by the department if the underground storage tank system 3
meets the conditions that require permanent closure under R 29.2153 4
of the Michigan Administrative Code or the department determines it 5
is necessary to protect public health, safety, welfare, or the 6
environment. 7