Sec. 5204e.
(1) In addition to other requirements of this part, the grant program shall provide grants to municipalities for sewage collection and treatment systems or storm water or nonpoint source pollution control as provided for in this section.
(2) The grant program is subject to all of the following:
(a) The grant program shall provide grants in accordance with the following:
(i) Subject to subparagraph (iii), for grants of up to $1,000,000.00, not more than 90% of the costs incurred by the municipality.
(ii) Subject to subparagraph (iii), for grants of more than $1,000,000.00 and less than $2,000,000.00, not more than 90% of the costs incurred by the municipality up to $1,000,000.00 and not more than 75% of the costs above $1,000,000.00 incurred by the municipality.
(iii) If any of the following conditions are met, a grant may be issued to cover 100% of the costs incurred by the municipality:
(A) The municipality is a disadvantaged community as defined in part 53.
(B) The municipality is in receivership.
(C) The municipality is operating under an emergency manager or an emergency financial manager appointed under state law.
(D) The municipality is operating under a consent agreement as provided under the local government fiscal responsibility act, 1990 PA 72, MCL 141.1201 to 141.1291.
(b) A grant may be used for 1 or more of the following purposes:
(i) Development of an asset management program for a sewage collection and treatment system or a storm water system. For sewage collection and treatment systems, the program shall include the development of a funding structure and implementation schedule that provides sufficient resources to implement the program. The municipality shall coordinate, as feasible, with other infrastructure activities in the same geographic area. In addition, a disadvantaged community may expend not more than $500,000.00 in grant funds to implement projects identified in the asset management program.
(ii) Development of management plans for the treatment of storm water.
(iii) Planning and design of a sewage treatment works project or stormwater treatment project as defined in section 5301(n) or (o) or planning and design of construction activities designed to reduce nonpoint source pollution.
(iv) Project costs of a municipality related to the testing and demonstration of innovative wastewater and storm water technologies approved by the department.
(c) The local match is not eligible for loan assistance from the state water pollution control revolving fund or the fund.
(d) Grant funds shall not be used for general local government administrative activities or activities performed by municipal employees that are unrelated to the project.
(e) A municipality shall not receive more than $2,000,000.00 in total grant assistance under this section.
(3) The department shall establish an application and review process for considering grant applications under this section. The application shall contain the information required by the department and the authority. Within 60 days after receipt of an application, the department shall publish notice of the application on the department's calendar. Within 120 days after receipt of an administratively complete grant application, the department shall, in writing, notify the applicant whether the application is approved or rejected. If the department approves a grant under this section, the department and the authority shall enter into a grant agreement with the recipient prior to transferring funds. The grant agreement shall contain terms established by the department and the authority, including both of the following:
(a) A requirement that a grant recipient proceed with a project for which grant funding is provided within 3 years after the department approves the grant. For asset management programs related to sewage collection and treatment systems, this includes significant progress, as determined by the department, toward achieving the funding structure necessary to implement the program.
(b) A requirement that the grant recipient repay the grant, within 90 days of being informed to do so, with interest at a rate not to exceed 8% per year, to the authority for deposit into the fund if the applicant is unable to, or decides not to, proceed with a construction project or begin implementation of an asset management program for which grant funding is provided.
(4) For each year in which the department receives grant applications under this section, the department shall report by October 1 of that year to the standing committees of the senate and the house of representatives with primary jurisdiction over issues pertaining to natural resources and the environment and to the senate and house of representatives appropriations committees on the utilization of funds under this part that were received from the Great Lakes water quality bond fund created in section 19706. The report shall include, at a minimum, all of the following:
(a) The number of grant applications received under this section.
(b) The name of each municipality applying for a grant.
(c) The type of project being funded for each grant awarded.
(d) The number of users potentially affected by each grant awarded.
(e) The amount of the local match for each grant awarded.
(f) The individual and annual cumulative amount of grant funds awarded, including an identification of whether each award was for the purpose of applying for assistance from the state water pollution control revolving fund or the fund.
History: Add. 2012, Act 511, Eff. Jan. 2, 2013
Popular Name: Act 451
Popular Name: NREPA
Last modified: October 10, 2016