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HB 5936

Environmental protection: permits; refund of permit fees in the case of delayed decisions; provide for. Amends sec. 1307 of 1994 PA 451 (MCL 324.1307).

2025-2026 Regular Session Introduced by Joe Aragona and 4 co-sponsors

HB 5936 requires timely permit decisions and, if the department delays, refunds 15% of the higher of the permit fee or first-year fees to the applicant.

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
#environmentalprotection:permits
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Bill Summary · HB 5936

Summary of HB 5936 (2025-2026) – Michigan

Jurisdiction: Michigan
Topic: Environmental protection permits; refund of permit fees in case of delayed decisions
Bill: HB 5936 Amends Sec. 1307 of 1994 PA 451 (Natural Resources and Environmental Protection Act)

Introduction
- Introduced April 30, 2026 by Rep. Harris and co-sponsors; referred to the Committee on Regulatory Reform.

Purpose and intent
- The bill modifies the permit processing framework to enhance predictability and accountability in the Department of Environment, Great Lakes, and Energy (the department) regarding permit decisions.
- A notable feature is a mandate to refund or compensate applicants if the department fails to meet processing requirements, effectively creating a performance-based remedy tied to processing delays.

Key provisions and changes (section-by-section overview)
- Sec. 1307(1): Processing deadline
- The department must approve or deny a permit by the processing deadline.

  • Sec. 1307(2): Extensions upon applicant request

    • Permit applicants may request an extension of up to 120 days.
    • The department may grant additional extensions beyond 120 days upon request.
    • A processing period cannot be extended beyond one year after the application period ends.

  • Sec. 1307(3): Tolling of processing period

    • The processing period is tolled (paused) from the date the applicant submits a section 1315(1) petition until the director issues a decision under section 1315(6).
    • If a petition under section 1315(1) is submitted, the department cannot approve/deny the permit until after the director issues a decision.

  • Sec. 1307(4): Written decision standards

    • Department actions must be in writing and based on evidence meeting standards in section 75 of the Administrative Procedures Act (APA), 1969 PA 306.

  • Sec. 1307(5): Permit approval conditions

    • Approvals may include conditions or modifications necessary to achieve compliance with applicable parts of the act.

  • Sec. 1307(6): Documentation for denials or modified approvals

    • When a permit is denied or approved with modification (for parts 301 or 303), the decision must document:
    • Specific cited provisions and rules relied upon.
    • Sufficient facts or data in the file.
    • Application of reliable scientific principles/methods (and their reliable application to the facts).
    • For parts 301 or 303 denials, suggestions for modifications to allow approval.

  • Sec. 1307(7): 15% remedy for failure to satisfy subsection (1)

    • If the department fails to satisfy the processing requirements for a permit (except certain described permits), the department must pay the applicant:
    • 15% of the greater of:
      • The total permit application fee, or
      • The total amount of the first periodic department fee/assessment charged to the holder of the permit.

  • Sec. 1307(8): Deemed approval if specific permits fail APA standards

    • For permits required by sections 11509, 11512, 30304, or 32603, a failure to meet processing requirements results in the application being considered approved and the department deemed to have made any necessary determinations.

  • Sec. 1307(9): Non-discrimination and processing order

    • Failures to meet requirements or payments must not be used to discriminate against the applicant.
    • If a payment is required under subsection (7), processing must continue in sequence with other applications of the same permit type, unless the director determines a different ordering is in the public interest.

  • Sec. 1307(10): Backlog response

    • If 10% or more of a permit type’s applications in a quarter fail to meet processing requirements, the department must allocate resources to eliminate the backlog and satisfy requirements within the next fiscal quarter.

  • Sec. 1307(11): Reporting to appropriations committees

    • The director must notify the Senate and House appropriations committees in writing of processing failures, including:
    • Reasons for the failure.
    • The amount payable under subsection (7) or a statement that the application was considered approved under subsection (8).

Who is affected
- Applicants for environmental permits under the act (including parts 301, 303, and those tied to sections 11509, 11512, 30304, 32603).
- The department’s processing and decision-making processes, with added emphasis on timelines, documentation, and backstop payments to applicants.

Timing and procedural notes
- Extensions up to 120 days are possible; total processing cannot exceed one year after the application period ends without further action.
- The processing period can be tolled if an additional petition under section 1315(1) is filed.
- If delay remedies apply, the department owes a monetary remedy (15% of certain fees) to the applicant.
- Backlog requirements trigger additional resource allocation within the next fiscal quarter.

Impact considerations
- Creates a financial incentive for timely decisions and a concrete remedy for applicants when delays occur.
- Encourages robust, well-documented decision-making with explicit standards and rationale.
- May affect department workload, backlog management, and prioritization across permit types.

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

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