SB 898 — Economic development: brownfield redevelopment authority; environmental brownfield redevelopment program; modify. Amends secs. 19608a, 19608b, 19609, 19610, 19610a, 19611, 19612, 19613, 20108b & 21506a of 1994 PA 451 (MCL 324.19608a et seq.) & adds pt. 192.

SB-898, As Passed Senate, June 17, 2026 SUBSTITUTE FOR SENATE BILL NO.

PART 192 RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 BROWNFIELD REDEVELOPMENT Sec.

(viii) Removal and disposal of lake or river sediments that exceed part 201 cleanup criteria for unrestricted residential use from or related to an economic development project, if the upland property is a facility or would become a facility as the result of RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 disposition of dredged spoils.

(k) "Measurable environmental benefit" means the extent that the requirements of part 201 or 213, or both, are advanced at a RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 brownfield project where environmental conditions inhibit the site's redevelopment or reuse.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (c) The applicant demonstrates to the department that there is an identifiable source of funds for the future maintenance and operation of the activities funded with money from the program, if appropriate.

(b) Brownfield projects that have significant economic and environmental benefit may be considered for more than 1 grant or loan in separate fiscal years, provided that the loan or grant agreement includes project-specific benchmarks for eligible activities and failure to satisfy a benchmark would terminate the RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 project's eligibility for additional grant or loan funding, as applicable.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (3) A grant may be used to fund response activities if all of the conditions under subsection (4) are met, and the department determines that the response activities are in the public interest.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (g) A schedule for the completion of the proposed eligible activities.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (e) Whether the proposed project will significantly contribute to the local unit of government's economic and community redevelopment or the revitalization of adjacent neighborhoods.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (2) If the property is not owned by the grant or loan recipient, an executed access agreement that meets the requirements of section 19209(2)(i) must be provided before the approval of a work plan.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (b) Obtain authorization from the department before implementing a change that significantly alters the proposed project.

(a) A loan interest rate of not more than 50% of the prime RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 rate as determined by the department as of the date of approval of the loan.

The department and the department of attorney general may recover costs expended under this part for corrective actions, response activities, and all other recoverable costs under RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 part 201 or 213 from the parties that are responsible for an activity causing a release under part 201 or 213.

(1) The department shall create a clean Michigan initiative grant and revolving loan program for the purpose of RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 making grants and loans to local units of government under section 19608(1)(a)(iv) for eligible activities at eligible properties with redevelopment potential.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (d) Within the last 24 months, the applicant has successfully undergone an audit conducted in accordance with generally accepted auditing standards or an emergency manager has been appointed for the applicant under the local financial stability and choice act, 2012 PA 436, MCL 141.1541 to 141.1575.

(iii) Brownfield projects that have significant economic and environmental benefit may be considered for more than 1 grant or loan over consecutive years, provided that the loan or grant agreement includes project-specific benchmarks for eligible activities and failure to satisfy a benchmark would terminate the RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 project's eligibility for additional grant or loan funding, as applicable.

(i) Proposed new land use and reliability of restrictions to RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 prevent exposure to contamination.

(i) A party responsible for an activity causing a release is RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 neither not the seller nor the or developer of the property to receive funding.

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 (iv) The location of the property.

(1) Upon On receipt of a grant or loan application, for funding provided under section 19608(1)(a)(iv), the department shall review the application based on the following RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 considerations:

RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 Sec.

The department is authorized to include in the loan agreement a provision that permits the release RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 of the financial assurance in favor of a pledge of the right of first refusal of the tax increment revenue to the department under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, 125.2670, if the brownfield project has been substantially completed and the annual tax increment being captured relative to the brownfield project is equal to or greater than 125% of the annual loan reimbursement payment.

(1) Prior to Before making a grant or loan with RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 money from the fund, the administering state department shall consider the extent to which the making of the grant or loan contributes to the achievement of a balanced distribution of grants and loans throughout the state.

(2) The administering state department may revoke a grant or a loan made with money from the fund or withhold payment if the recipient fails to comply with the terms and conditions of the grant or loan agreement or with the requirements of this part or RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 the rules promulgated under this part, or with other applicable law or rules.

(b) Loan recipients shall repay loans in equal annual installments of principal and interest beginning not later than 5 RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 years after the first draw of the loan and concluding not later than 15 years after the first draw of the loan.

(10) Notwithstanding any other provision of this section, for RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 grant or loan projects approved for funding under section 19608(1)(a)(iv) on or after the effective date of the amendatory act that added this subsection, this section does not apply, and the department shall apply the criteria used for projects described in part 192.

(2) Notwithstanding any other provision of this section, for grant or loan projects approved for funding under section 19608(1)(a)(iv) on or after the effective date of the amendatory act that added this subsection, subsection (1) does not apply, and the department shall apply the criteria used for projects described in RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 part 192.

(c) The reasonable costs of the department in administering RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke 1 the refined petroleum fund and implementing part 213.

Money shall must not be provided under this subsection to fund the performance of response activities at a part 213 property to address contamination that is solely attributable to a release RMH S06647'26 (S-1)(S-1)_SB898_APS_1 cbu2dqdsu3ke regulated under part 201.

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