HB 5602 (Michigan 2025-2026) – Summary of Appropriations: Department of Environment, Great Lakes, and Energy; FY 2026-27
Purpose
- Establishes the state spending plan (appropriations) for the Department of Environment, Great Lakes, and Energy (EGLE) for the fiscal year ending September 30, 2027, and provides for the expenditure of those funds.
Key Provisions and Changes
- Part 1 – Line-Item Appropriations
- Appropriates a gross amount of $100 and $100 from the State General Fund/General Purpose (GF/GP) to EGLE for FY ending September 30, 2027.
- The overall department appropriation for the year is framed as a stand-alone, minimal baseline in this bill.
- Part 2 – Provisions Concerning Appropriations (General Provisions)
- Sec. 201: Confirms total state spending under Part 1 for FY 2027 from state sources is $100.00; no funds to local units of government (i.e., no local pass-through) under this act.
- Sec. 202: All appropriations are subject to the Management and Budget Act (1984 PA 431), governing administration and spending controls.
Supporting documents indicate substantial context from the prior year’s FY 2025-26 period, including:
- The Department’s broad mandate to manage Michigan’s air, land, water, and energy resources, with programs for resource quality, waste reduction, and environmental threats.
Notable Budgetary Context (as reflected in the supporting materials)
- The FY 2026-27 proposal (as analyzed in the House FY 2025-26 Year-to-Date summary) shows EGLE with an overall gross budget near $967.7 million in a comparative baseline, with various funding sources:
- General Fund/General Purpose (GF/GP)
- Federal (Fed)
- Restricted
- Internal Designated/IDG
- Local and Private contributions
- The House and Executive proposals include numerous policy disagreements on:
- Fee structures (landfill tipping fees, water resources permits, hazardous waste fees, oil and gas wells)
- One-time appropriations vs. ongoing funding
- Funding for Energy Programs, contaminated sites remediation, and the Michigan Geological Survey
- Work projects and carryforwards (e.g., remediation, underground storage tank programs, Renew Michigan)
- The House’s suggested changes often reduce or reallocate executive proposals, reject certain fee increases, and introduce policy provisions (e.g., permit timeline reporting, permit fee discounts for delays, updates to permitting guides, and annual reporting requirements).
Major Procedural and Timeline Aspects
- This bill is introduced February 26, 2026, and referred to the Appropriations Committee.
- It is part of the annual state budgeting process for FY 2026-27; final enactment would require passage by both chambers and signature by the Governor.
- The text sets a baseline appropriation for EGLE for FY 2026-27 at $100 GF/GP, with total state spending from state sources at $100, and no local unit pass-through under this act.
- Boilerplate and policy provisions can be revised in committee and through floor amendments; the accompanying analysis shows a broader context of ongoing program funding decisions and potential future amendments (e.g., work project carryforwards, permit process reforms, and new reporting requirements).
Impact Overview
- Fiscal: Establishes a minimal baseline appropriation for EGLE for FY 2026-27; allows for additional funding through future amendments, federal/state restricted sources, and potential one-time allocations.
- Programmatic: EGLE would continue to manage environmental resources; however, substantive funding levels for key programs (e.g., energy programs, hazardous waste oversight, water resources fees) are subject to later amendments and policy decisions.
- Administrative: Introduces reporting and governance provisions around permit timelines, permit fee adjustments, and guidebook updates, depending on future legislative action.