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HB 4459

Environmental protection: other; general obligation bond issuance; provide for. Creates new act. TIE BAR WITH: HB 4460'25

2025-2026 Regular Session Introduced by Erin Byrnes and 6 co-sponsors

Authorizes up to $2,000,000,000 in state general-obligation bonds to fund environmental cleanup and water quality projects, with voter approval and a required companion bill.

bill electronically reproduced 05/06/2025
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Bill Summary · HB 4459

Summary of HB 4459 — Clean Michigan 2 Initiative Act (Introduced May 2025)

Purpose and intent

  • HB 4459 would authorize the state to borrow up to $2,000,000,000 in general obligation bonds, pledged by the state’s full faith and credit, to fund environmental and natural resources protection programs.
  • The programs targeted include cleaning up and redeveloping contaminated sites, improving water quality, pollution prevention, reducing lead contamination, reclaiming waterfronts, and cleaning up contaminated sediments in lakes, rivers, and streams.
  • The act is titled the “clean Michigan 2 initiative act” and is designed to finance a broad set of environmental and redevelopment efforts through bond proceeds.

Key provisions and changes

  • Bond authorization: Issuance of general obligation bonds not to exceed $2 billion, with the full faith and credit of the state pledged for repayment of principal and interest.
  • Bond fund administration: Proceeds from bond sales, plus any premiums, accrued interest, and interest earned, must be deposited into the “clean Michigan 2 initiative bond fund” (Created in the act as described; references the NRPEP Act’s existing fund framework).
  • Eligible uses: Funds may be expended for the purposes authorized by the act, including issuing costs and other measures related to the bond program.
  • Referendum requirement: The borrowing and bond issuance must be submitted to the voters at the next general election, with the ballot language specifying the purpose, amount, and repayment method (general fund).
  • Debt service: Following bond issuance, the legislature must annually appropriate enough from the general fund to pay principal, interest, and related costs promptly when due; the Governor must include this in the annual budget recommendations.
  • Enactment condition: The act does not take effect unless related companion legislation (S01195’25 or H01195’25, i.e., HB 4460’25) is enacted.

Who/what is affected

  • State finances: Establishes a large new debt obligation backed by state credit.
  • Environmental and natural resources programs: Funding allocation for cleanup, water quality, pollution prevention, lead abatement, waterfront revitalization, and sediment cleanup.
  • The general electorate: Required to approve the bonding authorization via a statewide vote.

Procedural and timeline aspects

  • Introduced: March 11, 2025; first reading April 3, 2025; referred to Committee on Natural Resources and Tourism.
  • Reproduced/electronically updated: May 6–7, 2025.
  • Tie-bar: Requires enactment of HB 4460’25 (another environmental/bond measure) for this act to take effect.

Fiscal and policy considerations

  • Substantial debt issuance: $2 billion principal, with annual debt service funded from the general fund.
  • Projected impact depends on which projects are funded and the timeline of bond sales and project investments.
  • Ballot and voter oversight: Final approval depends on statewide voter referendum at the next general election.

Related: Tie-bar

  • HB 4459 is tied to HB 4460’25; passage of HB 4460’25 is a condition precedent for HB 4459’s effectiveness.

Compiled from official sources — confirm details with the bill’s official record.

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