HB 5893 (Michigan, 2025-2026) – Summary
Purpose and intent
- Establishes a new Part 4 within the Natural Resources and Environmental Protection Act to address PFAS (per- and polyfluoroalkyl substances) contamination.
- Creates a PFAS action framework that includes enhanced penalties for large corporations and a dedicated PFAS Impact Fund to support affected farmers.
Key provisions
1) Enhanced penalties for large corporations (Sec. 401)
- If a corporation is liable for a criminal or civil violation under article II or chapters 1 or 3 of article III and:
- Its annual gross revenue in the prior fiscal year (before the violation) exceeded $5,000,000, then the maximum fine for the violation is the greater of:
- 5% of the corporation’s prior-year annual gross revenue, or
- The existing maximum fine otherwise specified in the act.
- Purpose: increase enforcement leverage against financially large violators.
2) PFAS grant program for farmers (Sec. 402)
- Establishment: The Department (of Environment, Great Lakes, and Energy) with the Department of Agriculture and Rural Development to run a PFAS Impact Grant Program.
- Eligibility: Grants to farmers whose agricultural land, products, or water accessed from the land are contaminated with PFAS.
- Eligible uses (non-exhaustive list):
a) Medical/mental health testing and care costs not covered by insurance or settlements for health effects tied to PFAS.
b) Costs of buying/selling contaminated agricultural land.
c) Investments to remove, mitigate, remediate, or destroy PFAS; or to acquire equipment, facilities, and infrastructure to sustain profitability.
d) Income replacement and mortgage payments based on prior-year gross income.
e) Voluntary monitoring and testing (including testing of products, livestock, feed).
f) Short-term assistance for:
- Alternative cropping budgets,
- Remediation strategies,
- Technological adaptations,
- Transition plans to alternative revenue streams.
- Application requirements (Sec. 402(3)):
- Personal and business contact details; tax information; farm operations and sales data before/after PFAS discovery; financial documents; documentation of any PFAS-related payments; a detailed plan for fund use, including remediation/transition strategies; any other information the department requires.
- Grant amounts and limits (Sec. 402(4)):
- Grants issued based on the plan (Sec. 402(3)(g)) minus other payments and non-PFAS farm income.
- Indemnifications or supports may cover:
a) Depopulation indemnity for livestock, up to $10,000 per animal (or average $5,000 per animal) depending on type and FMV.
b) 100% FMV of agricultural products (based on USDA indemnities or county prices/yields if uninsured).
c) 100% FMV of agricultural land if land cannot be used for agriculture.
d) 100% of rental rate for agricultural land, based on a 3-year average USDA/NASS county rents, for the period of the transition plan.
- PFAS Impact Fund (Sec. 405):
- Created in the state treasury to hold money from civil infractions under Sec. 401 and other sources.
- Fund earns interest and is able to carry over year to year.
- Department administers the fund for auditing and, upon appropriation, issues grants under Sec. 402.
- Rules and definitions (Sec. 406, 407):
- Department to promulgate rules under the Administrative Procedures Act.
- Definitions for key terms: “agricultural land,” “contamination,” “department,” “farm,” “fund,” “PFAS,” and “household member.”
Enacting condition
- The act’s effective date is contingent on the enactment of House Bill 5894 (the tie-bar partner).
Administrative and timeline notes
- Administration: Department of Environment, Great Lakes, and Energy (DEGLE) administers the PFAS Impact Fund and grant program; joint administration with the Department of Agriculture and Rural Development.
- Rulemaking: To be done under the Michigan Administrative Procedures Act.
- Implementation timeline: No specific start date provided in the bill text; contingent on passage of both HB 5893 and the tie-bar HB 5894.
Affected parties
- Large corporations liable for PFAS violations (enhanced penalties for fines).
- Michigan farmers: potential eligibility for grants, indemnities, and transition support if PFAS contamination is present.
- Agricultural landowners, water users, and agricultural product producers affected by PFAS contamination.
- The state treasury, via the PFAS Impact Fund, and state agencies responsible for environmental and agricultural programs.
Impact overview
- Strengthened enforcement against large PFAS violators.
- Financial assistance and risk-cushioning for farmers facing PFAS-related disruption.
- Resources to support remediation, transition planning, and potential shifts in revenue models, with a structured funding mechanism to sustain ongoing support.
