Advocacy News – Oct. 23, 2024
What happened: Last week, the Department of Environment, Great Lakes and Energy (EGLE) held a meeting to discuss their proposed changes to Senate Bills 605 and 606.
- Together, these bills make significant changes to the regulations and requirements that property owners would have to comply with when dealing with contaminated soil or groundwater.
What we’re saying: The MI Chamber has voiced strong concerns that the bills would make it significantly more costly for property owners across the state, as well as for developers seeking to revitalize brownfield space.
Why it matters: Although there were some improvements to the bills suggested by EGLE, several new and onerous requirements were also suggested:
- Owners and operators are required to submit a notice to EGLE within 30 days of discovering that their property is a contaminated facility.
- Requires all owners or operators of contaminated facilities to submit to EGLE and implement a due care plan, a list of actions to fulfill all obligations and subsequent documentation of due care compliance.
- Expands “exacerbation “of existing contamination as failure to carry out a due care plan.
- A person who fails to implement a due care plan is guilty of a criminal misdemeanor and is subject to fines.
- A liable owner or operator is required to report any release of a hazardous substance to EGLE within 48 hours — even if it’s less than a “reportable quantity.” Plus, all contaminated facilities must be assessed with a report to EGLE, regardless of risk.
- After the initial assessment report, the owner or operator must either submit to EGLE for approval a remedial action plan, or (assuming that no remedial action is required) a closure report or no further action report.
- A remedial action plan must address all releases in all media for which the owner or operator is liable. A remedial action plan under SB605 is basically a comprehensive remedial investigation/feasibility study.
The bottom line: For every new requirement, EGLE would have the authority to approve, approve with conditions, or deny a property owners submittal. This would significantly extend the amount of time it would take to achieve the approved documentation needed for a business owner to comply with the law, or even gain access to a loan or insurance.
- These changes have the potential to make innocent owners and operators liable for all contamination at the site merely for failing to complete their due care plan.
- In addition, EGLE may order innocent owners and operators to conduct response activities “or take any other action required by this part [201].”
- It is unclear whether these orders must be limited to due care obligations.
What’s next: The MI Chamber continues to push back and utilize the expertise of Chamber members to educate stakeholders and elected officials on the many challenges to these proposed legislative changes.
- There is also significant outreach taking place with urban core mayors to help them understand that these changes could upend brownfield re-development in their local downtowns.
For questions or more information, please contact Mike Alaimo at malaimo@michamber.com.