Bill Appointing Industry Representatives to Oversee Environmental Decisions Introduced in Michigan

On November 9, 2017, a package of bills (Senate Bill (SB) 652, SB 653, and SB 654) aimed at increasing oversight of the Michigan Department of Environmental Quality (MDEQ) was introduced in the state Senate. One of the bills – SB 652 – proposes to create a new Environmental Rules Review Committee “to oversee all rulemaking of the” MDEQ. The Committee would consist of 11 voting members, appointed by the Governor, by and with the advice and consent of the state Senate. At least six of the members must represent industry.

The Environmental Rules Review Committee would have broad authority to review decisions of the MDEQ. All rules proposed by the MDEQ would be subject to review by the committee to ensure that they:

  • do not exceed the rule-making delegation contained in the statute authorizing the rule-making;
  • reasonably implement and apply any statute authorizing the rule-making and are consistent with all other applicable law;
  • are necessary and suitable to achieve their purposes in proportion to the burdens they place on individuals and businesses; and
  • are based on sound and objective scientific reasoning.

If the committee determines that one or more of these requirements is not met, it may veto the proposed rule.


Update

On January 25, 2017, the Michigan Senate voted to adopt SB 652, SB 653, and SB 654. The bills were then sent to the Michigan House of Representatives.

On May 22, 2018, the Michigan House of Representatives voted to adopt SB 652. SB 653, and SB 654 with amendments. As amended, the House version of SB 652 would not allow the Environmental Rules Review Committee to veto proposed rules, but merely to object. On receiving an objection from the Committee, the MDEQ would be required to “attempt to resolve any issues” within 11 months. If the issues cannot be resolved within that period, the Director of MDEQ would be required to notify the Governor, who would have the final decision as to whether the draft rules should be adopted.

On June 12, 2018, the Senate voted to adopt the House version of SB 652. The bill was presented to the Governor for signature on July 25, 2017. The Governor signed the bill on September 5, 2018.

In the week of June 25, 2018, the Governor signed SB 653 and SB 654 (as amended by the House) into law. The bills create an Environmental Permit Review Commission and an Environmental Science Advisory Board, respectively, with members to each appointed by the Governor. Members must have professional expertise in engineering, chemistry, geology or other related disciplines. Due to these requirements, critics of the bills argue that the committee's will result in undue industry representation in matters regarding the environment or management of natural resources in the state of Michigan.