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HB 5937

Environmental protection: permits; approval process for certain permits; modify. Amends secs. 1301, 1305, 1307, 3112 & 30307 of 1994 PA 451 (MCL 324.1301 et seq.).

2025-2026 Regular Session Introduced by Joe Aragona and 3 co-sponsors

The bill standardizes and speeds environmental permitting by setting clear completeness and processing timelines, transparency rules, and state-local roles.

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
#environmentalprotection:permits #stateagencies(existing):licensingandregulatoryaffairs #watersupply:permitsandlicenses
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Bill Summary · HB 5937

Summary of HB 5937 (Michigan, 2025-2026)

A bill to amend parts of the Natural Resources and Environmental Protection Act (Act 451 of 1994), with a focus on permits, the processing timeline, administrative completeness, and related oversight.

Note: The bill text provided reflects proposed changes to sections 1301, 1305, 1307, 3112, and 30307, including how applications are defined, how processing timelines work, and the roles of departments, hearings, and local units of government in wetland permitting.

1) Purpose and Intent

  • Streamline and standardize the processing of environmental permits by clarifying definitions, deadlines, and processes.
  • Establish a more predictable permitting timetable, with specific processing periods and deadlines.
  • Enhance transparency through mandatory posting of pending applications, notices, and public hearing schedules.
  • Clarify the interaction between the state department (Department of Environment, Great Lakes, and Energy in practice) and local units of government in wetlands permitting.
  • Address accountability for processing delays, including potential remedies and reporting to appropriations committees.

2) Key Provisions and Changes

Definitions and Scope (Sec. 1301)

  • Introduces or refines definitions for:
    • Application period: starts when the department receives an application and ends when it is administratively complete and fees are paid.
    • Department, Director, Environmental Permit Review Commission, Environmental Permit Panel.
    • Permit: broad inclusion of operating licenses or registrations under various listed sections (e.g., water use, sewerage, dredging, mining, mining-related permits, incinerator licenses, coastal and wetland-related permits, ballast water and other environmental controls, etc.).
    • Processing deadline and Processing period: sets out timelines depending on permit type.

Administrative Completeness (Sec. 1305)

  • The department must determine administrative completeness:
    • Generally, a permit application becomes administratively complete within 30 days after receipt (or upon determination, whichever comes first).
    • If the application is deemed not administratively complete, the department must notify the applicant in writing/electronically with missing information or unpaid fees, tolling the 30-day period until corrected.
    • After completeness, the department should not request new information beyond a specified list unless a detailed justification is provided.
    • Clarifies department authority to request clarifications or corrections to be provided by the applicant.

Processing and Decision Timeline (Sec. 1307)

  • By the processing deadline, the department must approve or deny (subject to certain conditions and procedures).
  • Extensions:
    • Applicants may request an extension up to 120 days.
    • Extensions beyond 120 days are allowed but not to exceed one year after the application period ends.
  • Petition and pauses:
    • Processing can be tolled if a petition under section 1315(1) is filed, delaying the department’s decision until the director issues a decision under section 1315(6).
  • Decisions and justification:
    • Decisions must be in writing and supported by evidence meeting standards (including reliance on scientifically reliable methods, as applicable).
    • Denials or approvals with modifications must document the statutory basis, factual support, and, where applicable, offer suggestions to permit approval.
  • Remedies for processing failures:
    • If the department misses the processing deadline, it must pay the applicant 15% of the applicable fee or first periodic fee, except for certain specified permits (subsection 8).
    • If 10% or more of applications for a permit type are delayed in a quarter, the department must deploy resources to eliminate backlogs.
    • If delays occur, the director must notify appropriations committees including explanations and the amount payable or the approved status.

Water Permits and Compliance (Sec. 3112)

  • Prohibits discharging waste into state waters without a valid permit.
  • Sets timelines for determining administrative completeness (new vs. increased use: within 30 days; reissuance: within 90 days).
  • Permit conditions:
    • The department may condition permit validity on compliance with effluent requirements.
    • Ability to modify, suspend, revoke, or reissue permits for noncompliance.
  • Enforcement and appeals:
    • Provisions for abatement orders, referrals to the attorney general, and contested case hearings.
  • Vessel-related requirements:
    • Oceangoing vessels engaging in port operations require a permit and must comply with federal ballast water management rules (33 CFR Part 151, Subpart C) or department-approved methods.
    • Details on ballast water treatment requirements, partnerships with federal standards, and harmonization with Great Lakes compact standards when applicable.
  • Fees:
    • Permit fees under subsections for aquatic nuisance controls follow section 3120 (tiered fees for individual vs. general permits).

Wetlands Permitting and Local Government Role (Sec. 30307)

  • Hearing timelines and local involvement:
    • The department may hold a hearing within 60 days of receipt of a completed application (notice and location details align with rules governing administrative procedures).
    • Hearings may be held in the wetland’s county; public notices and schedules must be posted.
  • Appeals and local government coordination:
    • Decisions are subject to the Administrative Procedures Act.
    • Property owners may pursue legal action after administrative remedies are exhausted.
  • Local government jurisdiction:
    • Local units may regulate wetlands by ordinance within limits, with certain conditions:
    • Wetland definitions align with state law, except for minor-size variations (e.g., wetlands under 5 acres may be regulated).
    • Specific processes for smaller wetlands (2–5 acres) and compliance with related sections (30308, 30309, 30310).
    • If a local unit has an ordinance regulating wetlands:
    • Permit applications are forwarded to the local unit for review, modification/approval/denial, and the local unit must decide within 90 days (otherwise the permit is deemed approved).
    • Department must notify the local unit of its permit issuance within 15 days and include a copy of the permit.
    • If no local wetland ordinance exists:
    • The department directly forwards the permit to the local unit, which may review, hold hearings, and provide recommendations within 45 days, or decline to make a recommendation. The department will consider and respond to the local unit’s input.

3) Who or What Would Be Affected

  • Permit applicants for a broad range of environmental and natural resource activities listed in Sec. 1301(g) (e.g., water use, dredging, wetlands, solid waste facilities, mining, ballast water, endangered species, and many other regulated activities).
  • State department (and its director) responsible for processing, approving, denying, or conditioning permits.
  • Environmental Permit Review Commission and Environmental Permit Panels (structured processes for permit reviews).
  • Local units of government, especially in wetlands regulation, with potential concurrent permitting authority or recommendations to the state department.
  • Oceangoing vessels and other entities subject to ballast water and invasive species controls under Sec. 3112.
  • Property owners challenging permit decisions through the Administrative Procedures Act and court actions.

4) Procedural and Timeline Aspects

  • Clear administrative completeness timelines (30 days generally) with tolling rules for missing information or fees.
  • Defined processing periods with permit-type-specific deadlines (ranging from 20 to 150 days, sometimes up to 150 days or 150+ days with hearing considerations).
  • Optional extensions up to 120 days, and potential total processing window capped at 1 year beyond the end of the application period.
  • Payment of penalties to applicants if the department misses deadlines (15% of applicable fee or first periodic charge for affected permits, with some exceptions).
  • Public notice, hearings, and online posting requirements to improve transparency.
  • Local government cooperation and potential deeming approvals if local processing deadlines are not met (with strong implications for local oversight and state coordination).

This bill aims to modernize and standardize the permit review process, increase accountability for processing timelines, and clarify roles between state agencies and local governments in environmental permitting, with particular emphasis on wetlands and ballast water management.

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

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