MI SB1442

Creates the strategic water quality initiatives fund within state treasury to receive deposits and be invested by state treasurer, with the authority serving as fiscal agent under the shared credit rating act.

Allows the department to expend up to $140,000,000 from the fund for response activities addressing nonpoint source water pollution at facilities where liable parties are unknown or lack resources, with $50,000,000 authorized per fiscal year for 2011 and 2012.

Permits the department to expend $10,000,000 for brownfield redevelopment grants ($5,000,000) and loans ($5,000,000) to municipalities and brownfield redevelopment authorities for response activities addressing nonpoint source water pollution, with unallocated funds available for other purposes after September 30, 2014.

Requires department to achieve performance objectives including increasing investment in sewage systems, providing pollution prevention incentives, optimizing cost-benefit ratios, and demonstrating progress toward risk reduction and economic development for projects funded after October 1, 2012.

Transfers not more than $710,000,000 to the state water pollution control revolving fund and not more than $290,000,000 to the strategic water quality initiatives fund, with the auditor general required to audit fund compliance within 2 and 4 years of the effective date.