MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

                     SURFACE WATER QUALITY DIVISION

                          CLEAN WATER FUND

(By authority conferred on the department of environmental quality by 
section 8808 of 1994 PA 451, MCL 324.8808)

 
R 324.8901    Purpose.
  Rule 1.  These rules govern the establishment of contracts for the 
expenditure of money in the clean water fund to implement the programs 
described in the department's document entitled "A Strategic Environmental 
Quality Monitoring Program for Michigan's Surface Waters," dated January 
1997; for water pollution control activities; for wellhead protection 
activities; for storm water treatment projects and activities; and to 
serve the purpose of section 8808 of 1994 PA 451, MCL 324.8808.

  History:  2000 AACS.


R 324.8902    Definitions; A to C.
  Rule 2.  As used in these rules:
 (a)  "Abandoned well" means any of the following which presents a threat 
to the groundwater resource and which no longer serves the purpose for 
which it was intended or has been taken out of service:
 (i)  A water well.
 (ii) A monitoring well.
 (iii)A drainage well.
 (iv) A recharge well.
 (v)  A test well.
 (vi) Other unplugged borings.
 (b)  "Abandoned well management grant" means a grant to protect 
community public water supplies by plugging abandoned wells within 
wellhead protection areas.
 (c)  "Abandoned well management team" means the wellhead protection team 
established under R 325.12804 or a team comprised of not less than 3 
persons which includes a representative of the community public water 
supply, a representative of the municipality, village or township, and at 
least 1 of the following local entities:
 (i)  County or district health department.
 (ii) Fire department.
 (iii)Business and industry.
 (iv) Agricultural sector.
 (v)  Educational institution.
 (vi) Planning or zoning officials.
 (vii)Environmental groups.
 (viii)The general public.
 (ix) A representative of an adjoining community into which the wellhead 
protection area extends. 
 (d)  "Applicant" means a nonprofit entity or local unit of government 
applying for grant funds awarded through the RFP process.
 (e)  "Approved watershed management plan" means either of the following:
 (i)  A watershed management plan that meets the criteria established in R 
324.8913 and is approved by the department.
 (ii)  LaMPs and RAPs.
 (f)  "Best management practices" means structural, vegetative, or 
managerial practices that reduce or prevent the detachment, transport, and 
delivery of pollutants to surface waters or groundwater.
 (g)  "Clean water fund" or "fund" means the fund created in section 8807 
of 1994 PA 451, MCL 324.8807.
 (h)  "Community public water supply" means a community supply as defined 
in section 2 of 1976 PA 399, MCL 325.1002.
 (i)  "Conservation reserve program (CRP)" means the program authorized 
by the food security act of 1985, as amended, P.L. 99-198, as amended, 7 
U.S.C. 1281 et seq., administered by the United States department of 
agriculture farm service agency, under which the commodity credit 
corporation will enter into contracts with eligible participants to 
convert eligible agricultural land to a conserving use for a period of 
time of not less than 10 years nor more than 15 years in return for 
financial and technical assistance.
 (j)  "Conservation reserve enhancement program" means the program
authorized under the food security act of 1985, as amended, P.L. 99-198, 
as amended, 7 U.S.C. 1281 et seq., under which a state may enter into 
agreement with the commodity credit corporation, to use the CRP to promote 
specific agricultural conservation and environmental objectives of 
Michigan and the nation.
 (k)  "Contract" means a legally binding agreement between the department 
and another entity, public or private, that establishes the terms and 
conditions of the work to be conducted, or the goods or services to be 
provided, whether acquired through a grant or through procurement.
 (l)  "Connecting waters" means any of the following:
 (i)   The St. Marys River.
 (ii)  The Keweenaw Waterway.
 (iii) The Detroit River.
 (iv)  The St. Clair River.
 (v)   Lake St. Clair.

  History: 2000 AACS.


R 324.8903    Definitions; D to G.
  Rule 3.  As used in these rules:
 (a)  "Department" means the director of the department of environmental 
quality or his or her designee to whom the director delegates a power or 
duty by written instrument.
 (b)  "Designated uses" means a use of the waters of the state as 
established by part 4 of 1994 PA 451, MCL 323.1041 et seq., including use 
for any of the following:
 (i)   Industrial, agricultural, and public water supply.
 (ii)  Recreation.
 (iii) Warmwater and coldwater fisheries, other aquatic life and wildlife.
 (iv)  Navigation.
 (c)  "Detroit consumer price index" means the most comprehensive index 
of consumer prices available for the Detroit area from the United States 
department of labor, bureau of labor statistics.
 (d) "For-profit entity" means any entity that is subject to taxation in 
accordance with the internal revenue code.
 (e)  "Grant" means a grant awarded through the RFP process and funded by 
the clean water fund, being either an abandoned well management grant or a 
surface water grant.
 (f)  "Grantee" means the recipient of a grant.
 (g)  "Groundwater" means water beneath the surface of the earth that 
saturates the pore spaces associated with sand and gravel, rock fractures, 
and other subsurface geologic material.

  History: 2000 AACS.


R 324.8904    Definitions; H to N.
  Rule 4.  As used in these rules:
 (a)  "High quality waters" means any of the following:
 (i)  Wild and scenic rivers designated under the federal wild and scenic 
rivers act of 1991, Public Law 102-249, 16 U.S.C. 1271 et seq.
 (ii) River reaches designated under part 305 of Act No. 451 of the 
Public Acts of 1994, as amended, MCL 324.30501 et seq.
 (iii)All inland lakes identified in the publication entitled, "Coldwater 
Lakes of Michigan," as published in August 1976 by the department of 
natural resources, under the authority of part 411 of 1994 PA 451, MCL 
324.41101 et seq., and which are designated for, and protected as, 
coldwater fisheries.
 (iv) All lakes which have public access, which are greater than or equal 
to 40 acres in size, which are identified in the publication entitled, 
"Designated Trout Lakes and Regulations," dated September 10, 1998, by the 
director of the department of natural resources under the authority of 
part 411 of 1994 PA 451, MCL 324.41101 et seq., and which are designated, 
and protected as, coldwater fisheries.
 (v)  All streams identified in the publication entitled, "Designated 
Trout Streams for the State of Michigan," director's order no. DFI-101.97, 
by the director of the department of natural resources under the authority 
of section 48701(m) of 1994 PA 451, MCL 324.48701(m),and which are 
designated for, and protected as, coldwater fisheries.
 (vi) Great lakes and connecting waters.
 (vii) Other waterbodies that the applicant can demonstrate to the 
department contain an abundance, diversity and widespread distribution of 
members from each of the order plecoptera (stoneflies), ephemeroptera 
(mayflies), and trichoptera (caddisflies), which are indicators of high 
quality waters.
 (b)  "In-kind services" means direct services which are related to the 
project and which are provided by the applicant or its partner, including 
any of the following:
 (i)  Salaries and wages of project staff and others working on the 
project.
 (ii) Time donated to the project, including media time related to the 
project.
 (iii)Cost of rental or purchase of equipment, materials, or supplies.
 (iv) Costs of collecting and analyzing water samples to document 
improvement in water quality.
 (v)  Costs of installing best management practices or materials donated 
for the implementation of best management practices.
 (vi) Other resources acceptable to the department.
 (c)  "LaMP" means a lakewide management plan developed under the Great 
Lakes water quality agreement between Canada and the United States, as 
amended in 1987.
 (d)  "Local unit of government" means any of the following entities:
 (i)  A county, city, village, or township or an agency of a county, 
city, village, or township.
 (ii) The office of a county drain commissioner.
 (iii)A soil conservation district established under part 93, entitled 
"Soil Conservation Districts," of 1994 PA 451, MCL 324.9301 et seq.
 (iv) A watershed council.
 (v)  A local health department as defined in section 1105 of 1978 PA 
368, MCL 333.1105.
 (vi) An authority or any other public body created by or under state law.
 (e)  "Low tritium public water supply" means a community supply that has 
had its well water sampled for tritium and had sample results of not more 
than 1.0 tritium unit.  
 (f)  "Maintenance contract" means a contract for the long-term 
maintenance of best management practices.
 (g)  "Match" means that portion of the total project cost that is to be 
provided by the applicant or its partners from public or private funding 
sources other than clean Michigan initiative funds and federal clean water 
act funds awarded as grants by the state.
 (h)  "Monitoring activity or activities" means any activity or 
activities carried out to implement the surface water monitoring strategy 
or provide data to demonstrate water quality improvements as part of the 
clean water fund grant activities in R 324.8907(1)(c)to(h), including any 
of the following:
 (i)  Measuring the chemical character of surface waters of the state, 
including sediments, fish and wildlife, and measuring stream flow.
 (ii) Monitoring the health and condition of associated aquatic 
communities and physical habitats of surface waters of the state.
 (iii)Analyzing and reporting any associated environmental data.
 (i)  "Nonprofit entity" means an entity that is exempt from taxation 
under section 501(c)(3) of the internal revenue code.
 (10)  "NPDES" means the national pollutant discharge elimination system.

  History: 2000 AACS.


R 324.8905    Definitions; P to S.
  Rule 5.  As used in these rules:
 (a) "Partner" means any individual or entity that participates in a 
project.
 (b) "Procurement" means the acquisition of goods, services, or both by 
the 
department in accordance with procurement guidelines established by the 
state of Michigan, department of management and budget, and the office of 
purchasing.
 (c) "Project" means work carried out under a grant. 
 (d) "QAPP" means a quality assurance project plan, which provides a 
framework for how environmental data will be collected to achieve specific 
project objectives, and which describes the procedures that will be 
implemented to obtain data of known and adequate quality.
 (e) "RAP" means a remedial action plan developed under the Great Lakes 
water quality agreement between Canada and the United States, as amended 
in 1987.
 (f) "Request for proposals" or "RFP" means the process used by the 
department to solicit proposals for grant funding and the document issued 
in conjunction with the process.
 (g) "Site" is a defined area of land that constitutes a viable management 
unit.
 (h) "Site plan" is an overall view of the site and includes all of the 
following:
 (i)  The construction proposed.
 (ii) The best management practices proposed.
 (iii)Existing structures and natural features.
 (i) "The surface water monitoring strategy" means the report entitled "A 
Strategic Environmental Quality Monitoring Program for Michigan's Surface 
Waters", (January 1997), as prepared by the department.
 (j) "Surface waters of the state" means all of the following, but does 
not 
include drainageways and ponds used solely for wastewater conveyance, 
treatment, or control:
 (i) The Great Lakes and their connecting waters.
 (ii) All inland lakes.
 (iii) Rivers.
 (iv) Streams.
 (v) Impoundments.
 (vi) Open drains.
 (vii) Other surface bodies of water within the confines of the state.
 (k)   "Surface water grant" means a grant to protect or improve surface 
waters of the state.

  History: 2000 AACS.


R 324.8906    Definitions; U to Z.
  Rule 6.  As used in these rules:
 (a)  "USDA" means the United States department of agriculture.
 (b)  "US EPA" means the United States environmental protection agency.
 (c) "Vendor" means the recipient of funds made available by the 
department through procurement
 (d)  "Water quality standards" means the part 4 water quality standards 
developed under part 31 of 1994 PA 451, MCL 324.3101 to 324.3119.
  (e)  "Watershed" means a topographic area of land that drains to a 
common point, such as a lake, pond, river, or stream, including the 
surface waters within that topographic area.
 (f)  "Watershed management plan" means a water resource plan that sets 
forth management strategies for improving water quality or achieving water 
quality standards and designated uses in a watershed.
 (g)  "Wellhead protection area" means an area which has been approved by 
the department under the state of Michigan wellhead protection program, 
which represents the surface and subsurface area surrounding a water well 
or well field, which supplies a community public water supply, and through 
which contaminants are reasonably likely to move toward and reach the 
water well or well field within a 10-year time of travel or means a 
designated source water protection area surrounding a low-tritium public 
water supply well.

  History: 2000 AACS.


R 324.8907    Clean water fund activities.
  Rule 7.  (1)  The director may award grants in accordance with 
R 324.8909 and enter into contracts for any of the following activities:
 (a)  Implementing portions of the surface water monitoring strategy.
 (b)  Providing state match to establish and implement the conservation 
reserve enhancement program in Michigan.
 (c)  Implementing water quality protection or improvement activities in 
approved watershed management plans that are required under a NPDES 
wastewater discharge permit for stormwater discharges from separate 
stormwater drainage systems and that are not otherwise required by federal 
law.
 (d)  Implementing water quality protection or improvement 
recommendations in approved watershed management plans that place a strong 
emphasis on protecting high quality waters.
 (e)  Implementing recommendations in LaMPs and RAPs that will directly 
protect or improve water quality, other than the recommendations that 
involve remediation of contaminated sediments.
 (f)  Implementing programs to identify and require the correction of 
illicit connections to separate storm sewer systems.
 (g)  Implementing programs to do one or both of the following:
 (i)  Identifying failing on-site septic systems, determining the extent 
of failing on-site systems, and determining the impact of failing on-site 
systems on designated uses.
 (ii) Implementing corrective measures in areas where failing on-site 
septic systems have been determined to be threatening or impairing 
designated uses.
 (h)  Locating and plugging abandoned wells within wellhead protection 
areas. 
 (2)  The activity identified under subrule (1)(b) of this rule shall be 
carried out in accordance with R 324.8915.
 (3)  The department shall implement the activity identified under 
subrule (1)(g) of this rule in accordance with R 324.8918.
 (4)  The department shall implement the activities identified under 
subrule (1)(h) of this rule, locating and plugging abandoned wells within 
wellhead protection areas, by implementing R 324.8909(1), (2), (3), 
(4)(a), (b)(i and ii),(c) to (g), (j) and R 324.8910(a) to (b), and R 
324.8911(7), R 324.8912, R 324.8916, and R 324.8917.
 (5)  Contracts shall be established with all recipients of money from 
the fund.
 (6)  The department shall not expend funds for removing inflow or 
infiltration from sanitary sewers.

  History: 2000 AACS.


R 324.8908    Eligibility for funds. 
  Rule 8.  (1) For-profit entities, local units of government, and 
nonprofit entities are eligible to be selected as vendors.
 (2)  Only local units of government and nonprofit entities are eligible 
for grants.
 (3)  In addition to the requirement of subrule (2) of this rule, an 
applicant shall meet all of the following requirements to be eligible for 
a grant:
 (a)  The applicant shall demonstrate the capability to carry out the 
proposed project.
 (b)  The applicant shall demonstrate that there is an identifiable 
source of funds for future maintenance and operation of the proposed 
project, if appropriate.
 (c)  The applicant shall have undergone a successful financial audit 
within the 24-month period immediately preceding the application for a 
grant. 
 (d)  Within the 24 months immediately preceding the application for a 
grant, the applicant shall not have demonstrated an inability to either 
manage a grant or meet the obligations in a contract with the department.
 (e)  Within the 24-month period immediately preceding the application 
for the grant, the applicant shall not have had a grant from any program 
within the department revoked or terminated due to the applicant's 
inability to meet the terms or condition of a grant.
 (4)  In addition to the requirements of subrules (2) and (3) of this 
rule, to be eligible for a grant, the applicant shall meet the application 
requirements set forth in R 324.8909(4) by the deadline identified in the 
request for proposals.  The department shall not accept applications 
postmarked or hand delivered later than the deadline in the request for 
proposals.  Eligible applicants may submit more than 1 application.
 (5)  Community public water supplies owned by the state or federal 
government are not eligible for abandoned well management grant assistance.

  History: 2000 AACS.


R 324.8909    Application and process for grants. 
  Rule 9.  (1)  The department shall issue a request for proposals each 
fiscal year in which clean water fund funding is available for grants.
 (2)  Requests for proposals shall include all of the following 
information:
 (a)  Instructions and forms needed by the applicant.
 (b)  The types of proposals being solicited.
 (c)  The application due date.
 (3)  An applicant shall submit an application to the department in the 
format prescribed by the department and on forms provided by the 
department.
 (4)  Applications for grants shall include all of the following 
information:
 (a)  Information about the applicant, including all of the following 
information:
 (i)  The applicant's name, address, telephone number, and other 
pertinent information.
 (ii) The qualifications of the applicant's key project staff.
 (iii)A statement from a certified public accountant as to when an audit 
was last conducted, the scope and date of the audit, and a general 
statement as to the results of the audit.
 (b)  A description of the project, including all of the following 
information:
 (i)  The nature of the surface water quality concern to be addressed, 
the abandoned well management project to be conducted, or the monitoring 
activity to be undertaken.
 (ii) The project goals and objectives.
 (iii)For projects implementing a portion of an approved watershed 
management plan, all of the following information:
 (A)  A statement identifying the associated approved watershed 
management plan.
 (B)  A statement verifying that the plan is current.
 (C)  A description of how the project is consistent with the tasks in 
R 324.8913(2)(g).
 (c)  Identification of the partners participating in the project and 
their roles.
 (d)  A work plan that includes all of the following information:
 (i)  Tasks to be completed.
 (ii) The entity or individual responsible for completing each task.
 (iii)A timetable of significant milestones and deliverables.
 (e)  Identification of any information and education activities.
 (f)  Budget information, including all of the following information:
 (i)  Anticipated expenditures.
 (ii) Local match and the sources of match.
 (iii)The amount of the grant being applied for.
 (g)  A statement that the proposed project is in compliance with state 
laws and rules or will result in compliance with state laws and rules.
 (h)  A statement verifying that all monitoring activities to be 
undertaken will be carried out in accordance with R 324.8914.
 (i)  A description of the steps to be taken to assure the long-term 
sustainability of the project, where appropriate, including both of the 
following:
 (i)  Steps to institutionalize the best management practices implemented 
in the project.  
 (ii)  Commitments by appropriate entities or individuals to maintain the 
best management practices and the period of time over which the 
commitments are applicable.
 (j)  An 8½ inch by 11 inch project location map.
 (k) In addition, applicants for abandoned well management grants under R 
324.8907(1)(h), shall provide all of the following:
 (i)  A list of members of an abandoned well management team.  
 (ii) Verification that a representative of the county or district health 
department was requested by the applicant to participate in the abandoned 
well management team.
 (iii)A description of the methods to be used to identify the owners of 
abandoned or temporarily abandoned wells.
 (iv) A description of the methods to be used to locate abandoned wells, 
including identification of the persons responsible for conducting the 
abandoned well search activity.
 (v)  A description of the methods to be used to administer the abandoned 
well plugging activity.
 (l)  Applicants for abandoned well management grants under R 
324.8907(1)(h) are exempt from subdivisions (h) to (i) and (m) to (q) of 
this subrule.
 (m)  For applications that propose to implement projects under 
R 324.8907(1)(c) to (e), an evaluation component that describes how 
success in achieving the goals and objectives will be determined.
 (n)  For applications that propose to implement structural best 
management practices under R 324.8907(1)(c) to (e), on sites where site 
plans have been developed, an applicant shall submit all of the following 
unless the applicant demonstrates, in writing, that the following do not 
apply:
 (i)  Engineered plans.  
 (ii) The basis of design.
 (iii)A statement indicating the specifications that were used.
 (iv) A statement verifying that all applicable permits will be obtained 
before implementation.
 (v)  A maintenance plan.
 (o)  For applications that propose to implement structural best 
management practices under R 324.8907(1)(c) to (e), on sites where site 
plans have not been developed, an applicant shall submit both of the 
following:
 (i)  An 8½ inch by 11 inch conceptual site plan showing the location of 
natural features and the proposed best management practices.
 (ii) A statement indicating that final plans consistent with subdivision 
 (n) of this subrule will be submitted to the department and approved by 
the department before construction.  The department shall incorporate the 
commitment into the project contract.
 (p)  Plans and specifications submitted shall bear 1 or more seals of a 
registered professional engineer or registered landscape architect or 
equivalent as appropriate for the proposed project and approved by the 
department.
 (q)  The department reserves the right to review, require modification 
of, and approve all site plans submitted for grant funding. 

  History: 2000 AACS.


R 324.8910    Project selection.
  Rule 10.  In selecting projects for grants awarded through a request for 
proposals process, the department shall consider all of the following as 
they relate to a project:
 (a)  The anticipated benefits of the project in relation to the costs.
 (b)  The ability of the applicant and the partners to carry out the 
project.
 (c)  A commitment on the part of the applicant to conduct an evaluation 
of the effectiveness of the project, including a commitment to document 
improvements in water quality or the reduction of pollutant loads, and 
document the success of proactive efforts such as pollution prevention 
controls and information and education activities.
 (d)  The expectation for long-term water quality improvement.
 (e)  The expectation for long-term protection of high quality waters.
 (f)  The consistency of the project with remedial action plans and other 
regional water quality or watershed management plans approved by the 
department.
 (g)  Waters that do not attain applicable water quality standards, or 
waters that presently attain water quality standards but are threatened, 
respectively, as identified in the publication "Clean Water Act Section 
303(d) List Michigan Submittal for 1998," revised annually by the 
department, as directed by Public Law 92-500, as amended, 33 U.S.C. 1251 
et seq.
 (h)  Commitments for financial and technical assistance from the 
partners in the project.
 (i)  Financial and other resource contributions by project participants 
in excess of that required in section 8802(4) of 1994 PA 451, 
MCL 324.8802(4).
 (j)  The commitment by the applicant and partners to institutionalize 
and enforce practices, using tools such as ordinances, to ensure water 
quality improves or is protected after the project ends.
 (k)  The length of time the applicant and partners have committed to 
maintain any structural best management practices.
 (l)  Whether the project provides benefits to sources of drinking water.
 (m)  Other information the department considers relevant.

  History: 2000 AACS.


R 324.8911    Grant reporting and reimbursement.
  Rule 11.  (1)  During the period of the grant, surface water grantees 
shall submit status reports to the department at a frequency consistent 
with their contract and in a format specified by the department.  A status 
report shall include all of the following information, as appropriate:
 (a)  A narrative description of the progress, including all of the 
following information:
 (i)  The project name, the grantee name, and the reporting period.
 (ii) The value of the match earned during the reporting period.
 (iii)The accomplishments achieved during the reporting period for each 
task in the work plan.
 (iv) Other accomplishments not anticipated in the work plan.
 (v)  Products generated during the reporting period.
 (vi) Barriers to progress that have caused delays.
 (vii)Activities scheduled for the next reporting period.
 (viii)In addition, for grantees implementing an abandoned well management 
grant under R 324.8907(1)(h), both of the following shall be submitted:
 (A)  A listing of locations of each abandoned well that was plugged 
during 
the reporting period.
 (B)  Copies of abandoned well plugging records.
 (b)  A financial status report in a format consistent with the form 
provided by the department.
 (c)  A summary of the environmental benefits of the project, including 
pollutant reduction information and the number and types of best 
management practices implemented. 
 (d)  Other appropriate information requested by the department in the 
grant or contract.
 (2)  The department shall make reimbursement of expenditures incurred 
during the reporting period upon approval of the status report.
 (3)  A grantee shall submit a final project report.  A grantee shall 
ensure that the final project report is consistent with the format 
provided by the department and includes all of the following information, 
as appropriate:
 (a)  A brief narrative description of the project, including all of the 
following information, as appropriate:
 (i)  The project name and the grantee name.
 (ii) The project goals and objectives.
 (iii)An analysis of the extent to which the project achieved the goals 
and objectives.
 (iv) A description of environmental benefits of the project, including 
all of the following:
 (A)  The number and types of best management practices implemented.
 (B)  Pollutant reduction information.
 (C)  Before and after pictures.
 (v)  A list of partners in the project and their contributions.
 (vi) A list of products resulting from the project.
 (vi)  A summary of the water quality data collected.
 (viii)An analysis of which portions of the project were successful, which 
were not successful, and the barriers to success.
 (b) A financial report in a format consistent with the form provided by 
the department.
 (c) In addition, recipients of grants to implement the surface water 
monitoring strategy under R 324.8907(1)(a) shall submit a compilation of 
data collected.
 (d) In addition, recipients of abandoned well management grants under R 
324.8907(1)(h), shall submit both of the following:
 (i) The number and location of all abandoned wells and temporarily 
abandoned wells located during the project.
 (ii) A list of locations of all oil, gas, and mineral wells identified 
during grant-eligible search activities.
 (e)  Other appropriate information requested by the department in the 
grant or contract.
 (4)  For grantees implementing structural best management practices, the 
department may conduct site inspections to ensure consistency with the 
approved plan.
 (5)  The department may withhold from reimbursement an amount up to 10% 
of the grant until the grantee's final project report has been received 
and approved, and the financial records on file with the department have 
been audited by the department and any issues resolved.  If the department 
does not receive an approvable final project report within 12 months of 
the end of the project contract, then the grantee is in default of the 
contract and forfeits claim to the unpaid balance of the grant.  The 
recovered funds are available only for commitment to future grants awarded 
under these rules.
 (6)  All grants may be subject to a postaudit.
 (7)  The department may revoke a grant made with money from the fund or 
withhold payment if the recipient fails to comply with the terms and 
conditions of the grant.  If a grant is revoked, then the department may 
recover all funds awarded.
 (8)  If the grantee satisfies the match requirement with a commitment to 
maintain the practices as allowed in R 324.8912(3), then the grantee's 
contract shall include a maintenance plan describing the maintenance 
activities that will be accomplished and a schedule for each activity.  As 
part of the contract, the grantee shall submit, in a format prescribed by 
the department, a report consistent with the maintenance schedule 
identified in the maintenance plan.  The plan shall describe the 
maintenance activities that will be accomplished and include a schedule 
for each activity.

  History: 2000 AACS.


R 324.8912    Match requirements for grants.
  Rule 12.  (1)  A grantee shall contribute match funds according to the 
following:
 (a) A grantee who receives grant funds under any of the following 
activities shall contribute not less than 25% of the project's total cost 
as match:
 (i)  R 324.8907(1)(a), implementing portions of the surface water 
monitoring strategy.
 (ii) R 324.8907(1)(d), implementing water quality protection or 
improvement recommendations in approved watershed management plans that 
place a strong emphasis on protecting high quality waters.
 (iii)R 324.8907(1)(e), implementing recommendations in LaMPs and RAPs 
that will directly protect or improve water quality, other than the 
recommendations that involve remediation of contaminated sediments.
 (iv) R 324.8907(1)(f), implementing programs to identify and require the 
correction of illicit connections to separate storm sewer systems.
 (v)  R 324.8907(1)(g)(i), identifying failing septic systems, 
determining the extent of failing on-site systems, and determining the 
impact of failing on-site systems on designated uses.
 (vi) R 324.8907(1)(h), locating and plugging abandoned wells within 
wellhead protection areas.
 (b)  A grantee who receives funding under R 324.8907(1)(c), implementing 
water quality protection or improvement activities in approved watershed 
management plans that are required under a NPDES wastewater discharge 
permit for stormwater discharges from separate stormwater drainage systems 
and that are not otherwise required by law, shall contribute not less than 
50% of the project's total cost as match.
 (c)  A grantee who receives funding under R 324.8907(g)(ii), 
implementing corrective measures in areas where failing on-site septic 
systems have been determined to be threatening or impairing designated 
uses, shall contribute 66% of the project's total cost as match.
 (2)  The department may accept in-kind services to provide all or a 
portion of the required match.
 (3)  For all grants except those awarded under R 324.8907(1)(g)and (h), 
the department may accept as the match requirement a commitment, under 
terms acceptable to the department, that provides for the maintenance of 
the project or practices funded by the grant.
 (a)  The commitment shall be incorporated into the contract between the 
grantee and the department.  
 (b)  Any maintenance contracts between the grantee and a third party 
shall be subject to approval by the deparment.
 (c)  The maintenance of the project or the practices shall be for a 
minimum of 20 years after the completion of the project.
 (d)  If the grantee fails to comply with the maintenance terms of the 
contract throughout the 20-year period, then the department may seek 
reimbursement of funds equivalent to a proportional amount of the grant 
funding for which the defaulted maintenance activities were to be provided 
as match, plus interest in an amount not to exceed 0.75% per month from 
the date on which the department requests repayment.  Funds recovered 
under this subrule shall be available only for commitment to future 
contracts awarded under these rules.
 (4)  A grantee implementing an abandoned well management grant under
R 324.8907(1)(h) shall provide documentation of a local match to the grant 
assistance through 1 or more of the following:
 (a)  Identification of an item within a local budget dedicated to 
conducting abandoned well, temporarily abandoned well, or active well 
management activities in an amount not less than the local match.  
Activities acceptable as match may include any of the following:
 (i)  Implementation of ordinances that reduce or eliminate the creation 
of unplugged abandoned wells by any of the following:
 (A)  Promoting the plugging of abandoned wells when community public 
water service is provided.
 (B)  Requiring the plugging of abandoned wells before demolition of 
buildings.
 (C)  Requiring the plugging of abandoned wells before modifications of 
land use zoning classifications are granted.
 (D)  Other similar strategies.
 (ii) Implementation of partnership agreements between townships, 
municipalities, villages, or local agencies for the purpose of abandoned 
well management.
 (iii)Mapping the locations of active wells within a wellhead protection 
area using global positioning system/geographic information system 
technology.
 (iv) Creation of geographic information system databases and the 
purchase of computer software to track the status of active wells inside 
wellhead protection areas.
 (v)  Grant-eligible activities defined in R 324.8916.
 (b)  A written agreement committing the applicant to an expenditure of 
funds in an amount not less than the local match.
 (c)  Evidence of previous local expenditures on abandoned well, 
temporarily abandoned well, and active well management and plugging 
activities within a wellhead protection area under 1978 PA 368, MCL 
333.12701 et seq., that were completed after October 1, 1998.
 (d)  A combination of any of the items specified in subdivisions (a) to 
 (c) of this subrule.

  History: 2000 AACS.


R 324.8913    Approvable watershed management plans.
  Rule 13.  (1)  A local unit of government or a nonprofit entity may 
submit a watershed management plan to the department for approval under 
these rules.
 (2)  A watershed plan submitted to the department for approval under 
this rule shall be detailed, current, and identify all of the following:
 (a)  The geographic scope of the watershed.
 (b)  The designated uses and desired uses of the watershed.
 (c)  The water quality threats or impairments in the watershed.
 (d)  The causes of the impairments or threats, including pollutants.
 (e)  A clear statement of the water quality improvement or protection 
goals of the watershed plan.
 (f)  The sources of the pollutants causing the impairments or threats of 
impairments.
 (g)  The sources of the pollutants that are critical to control in order 
to meet water quality standards or other water quality goals.
 (h)  The tasks and their estimated costs that need to be completed to 
prevent or control the critical sources of pollution or address causes of 
impairment, including, as appropriate, all of the following:
 (i)  The best management practices needed.
 (ii) Revisions needed or proposed to local zoning ordinances and other 
land use management tools.
 (iii)Informational and educational activities needed.
 (iv) Activities needed to institutionalize watershed protection.
 (i)  A summary of the public participation process, including the 
opportunity for public comment during watershed plan development and the 
partners that were involved in the development of the watershed plan.
 (j)  The estimated periods of time needed to complete each task and the 
proposed sequence of task completion.
 (k)  A description of the process that will be used to evaluate the 
effectiveness of implementing the plan and achieving its goals.
 (3)  The department shall accept and review watershed plans submitted 
for approval under this rule any time throughout the year.
 (4)  The department shall have 90 days to take action on watershed plans 
submitted for approval.  Taking action may include approving, rejecting, 
or commenting.

  History: 2000 AACS.


R 324.8914    Quality assurance for monitoring activities.
  Rule 14.  (1)  Before carrying out any monitoring activities, the 
grantee or vendor shall submit a QAPP for departmental approval.
 (2)  The QAPP shall address applicable objectives for environmental data 
accuracy, precision, completeness, representativeness, and comparability 
through coverage of the following elements, depending upon the monitoring 
activity or activities to be carried out:
 (a)  A description of the elements that make up the project and the 
person or persons responsible for carrying out the project.
 (b)  Quality assurance objectives for measurement data.
 (c)  Sampling procedures.
 (d)  Sample custody procedures.
 (e)  Equipment calibration procedures and frequency.
 (f)  Analytical procedures.
 (g)  Internal quality control checks.
 (h)  Data reduction, validation, and reporting.
 (i)  Performance and systems audits to verify adherence to quality 
assurance/quality control programs.
 (j)  Preventive maintenance on equipment and instrumentation.
 (k)  Data quality assessment.
 (l)  Corrective action for analytical and field equipment problems and 
quality assurance/quality control noncompliance problems.
 (3)  The grantee or vendor shall carry out monitoring activities in 
accordance with procedures outlined in 40 C.F.R. Section 136 (1998), or in 
accordance with other procedures approved by the department.

  History: 2000 AACS.


R 324.8915    Conservation reserve enhancement program.
  Rule 15.  (1)  The department of environmental quality shall not use 
more than $5,000,000.00 from the fund to provide state contribution for 
the establishment and implementation of the conservation reserve 
enhancement program.
  (2)  Money from the fund can be used for any of the following:
  (a)  Establishment of riparian buffer strips.
  (b)  Filter strips.
  (c)  Field windbreaks.
  (d)  Grassed waterways.
  (e)  Wetland restoration.
  (f)  Wetland creation.
  (g)  Other eligible practices related to water quality improvement 
specified in the conservation reserve enhancement program.
Fund money shall be used for onetime payment for voluntary permanent 
easements for the eligible practices.  The department of environmental 
quality shall not use funds for rental incentive payments or for easements 
other than permanent easements.
  (3)  The department of environmental quality may enter into a memorandum 
of understanding with another state agency to provide the state 
contribution to the conservation reserve enhancement program.
  (4)	 For the practices and activities identified in subrule (2)of this 
rule, the department of environmental quality and state agencies with whom 
the department enters into memorandums of understanding may provide direct 
payments to any of the following:
  (a)  Landowners who enroll in the conservation reserve enhancement 
program.
  (b)  Holders of the permanent easements.
  (c)	 Other third parties responsible for the establishment of the 
eligible practices or the permanent easements.

  History: 2000 AACS; 2001 AACS.


R 324.8916    Activities eligible for abandoned well management grants.
  Rule 16.  (1)  The following abandoned well management activities are 
eligible for funding:
 (a)  Preparation of proposals, narratives, financial statements, and 
reports related to abandoned well management, as requested by the 
department.
 (b)  Conducting the following activities within wellhead protection 
areas:
 (i)  Identification of well and property owners.
 (ii) On-site surveys, inspections, or other activities for finding 
abandoned wells.
 (iii)A search for, and review of, records to identify abandoned well 
locations.
 (iv)  Creation of databases and the purchase of computer software to 
track the status of abandoned wells.
 (v) The purchase or rental of magnetometers, metal detectors, or other 
appropriate geophysical instrumentation, and the excavation costs 
associated with locating buried abandoned wells.
 (vi)The mapping of abandoned well locations, at a cost not to exceed 5% 
of the total grant amount.
 (vii) Plugging of abandoned wells by water well drilling contractors 
registered under section 12704 of 1978 PA 368, MCL 333.12704.
 (A)  Where groundwater contamination problems have been identified 
inside the wellhead protection area, priority shall be given to plugging 
abandoned wells in the area of known contamination.
 (viii)Well plugging verification activities.
 (2)  The following community public waterline extension activities 
conducted within wellhead protection areas are eligible for funding:
 (a)  Identification of abandoned wells at structures where water service 
connection has been made.
 (b)  Plugging wells that have been taken out of service when new public 
water service connections are made.
 (c) Wells that are required to be plugged under parts 201, 211, 213, or 
615 of this act are not eligible for funding under this part.
 (3)  The applicant shall focus eligible public education and outreach 
activities on promoting wellhead protection concepts and the importance of 
plugging abandoned wells.  Eligible activities include the following:
 (a)  Development and dissemination of brochures, pamphlets, billing 
statement attachments, news releases, videos, or similar materials through 
newspapers, radio, television, or other public communication media 
acceptable to the department.

  History: 2000 AACS.


R 324.8917    Abandoned well management grants.
  Rule 17.  (1)  Each grant applicant is eligible for the following grant 
assistance to conduct activities within wellhead protection areas:
 (a)  Not more than the following amounts for conducting record searches 
and site surveys to locate abandoned or temporarily abandoned wells, 
conducting public outreach, and other related administrative activities 
approved by the department:
 (i)  $4,500 for the first square mile of wellhead protection area.
 (ii) $2,500 for each additional square mile of wellhead protection area.
 (b)  Not more than the following amounts for plugging abandoned wells:
 (i)  A standard rate of $400 per well identified during the search 
activities.  
 (ii) Plugging costs that exceed $400 per well, if an itemized job 
estimate from 3 registered water well drilling contractors is provided, 
and if the amount is approved in writing by the department.
 (iii)After locating abandoned wells in a wellhead protection area, to be 
eligible to receive grant assistance for plugging the identified abandoned 
wells, the grant applicant shall submit a listing of abandoned well 
locations to the department.
 (2)  A grant applicant shall not receive more than $100,000 for plugging 
abandoned wells in one fiscal year.
 (3)  A grantee that has received wellhead protection grant assistance 
authorized in section 12816 of 1976 PA 399, MCL 325.12816, shall not 
obtain funds under part 88 of 1994 PA 451, MCL 324.8808 et seq., for the 
same well location activity.
 (4) The department shall annually assess grant amounts defined in R 
324.8917 and shall increase the amounts by applying a percentage 
adjustment using the Detroit consumer price index.

  History: 2000 AACS.


R 324.8918    On-site septic systems grants.
 (1) Corrective measures eligible for funding under R 324.8907(1)(g)(ii) 
include regional treatment alternatives or community treatment systems 
that provide adequate long-term protection of water quality.
 (2) The department shall not award grants under R 324.8907(1)(g)(ii) to 
install individual septic systems.
 (3) The department shall not award grants under R 324.8907(1)(g)(ii) to 
install conventional septic tank systems.
 (4) All applications for projects under R 324.8907(1)(g)(ii) shall 
include 
verification that failing on-site septic systems are threatening or 
impairing designated uses.
 (5) Grants awarded for projects under R 324.8907(1)(g)(i) shall not be 
more than $25,000.
 (6) Grants awarded for projects under R 324.8907(1)(g)(ii) shall not be 
more than $1 million.
 (7) The department shall give priority in awarding grants under 
R 324.8907(1)(g) to projects that provide alternatives to failed septic 
systems in small rural communities.

  History: 2000 AACS.


R 324.8919    Availability of documents.
  Rule 19.  The following documents are available for inspection 
electronically, and a single copy may be obtained at no cost, at the 
Lansing office of the department of environmental quality, P.O. Box 30273, 
Lansing, Michigan 48909-7773:
 (a) "A Strategic Environmental Quality Monitoring Program for Michigan's 
Surface Waters," January 1997.
 (b) "Michigan Natural Rivers Program, Designated Rivers and Tributaries."
 (c) "Michigan Scenic Rivers Act of 1991."
 (d) "Coldwater Lakes of Michigan," August 1976.
 (e) "Designated Trout Lakes and Regulations," September 10, 1998.
 (f)  "Designated Trout Streams for the state of Michigan," January 8, 
1997.
 (g) "Clean Water Act Section 303(d) List, Michigan Submittal for 1998, 
revised May 1998."

  History: 2000 AACS.


R 324.8920    Adoption of standards by reference.
  Rule 20.  The following standards are adopted by reference in these 
rules and are available for inspection electronically, and at the Lansing 
office of the department of environmental quality, where they may be 
obtained as indicated:
 (a)  "Guidelines for Establishing Test Procedures for Analysis of 
Pollutants," 40 C.F.R. section 136 (1998).  Copies may be obtained from 
the Department of Environmental Quality, P.O. Box 30273, Lansing, Michigan 
48909-7773, at a cost, as of the time of adoption of these rules of 5 
cents per page at a labor rate of $18.10 per hour, or from the 
Superintendent of Documents, Government Printing Office, Washington, DC 
20402, at a cost as of the time of adoption of these rules of $41.00.

  History: 2000 AACS.