LANSING – On Thursday, Gov. Jennifer Granholm issued orders (E.O. 2009-44 and E.O. 2009-45) creating a new Department of Natural Resources and Environment to encompass the duties of the current departments of Environmental Quality and Natural Resources as well as some functions of the Department of Agriculture.

Administration officials estimated the changes, which would be effective January 16 unless rejected by the Legislature within 60 days, would save as much as $1.5 million through efficiencies and reduced duplication among the departments.

The orders expand the duties of the Natural Resources Commission, but take away its authority to appoint the department director. They also vest that appointment authority from the Commission of Agriculture in its department with the governor.

The move does not, however, merge the agriculture department into the new agency.

Granholm press secretary Liz Boyd said including Agriculture in the new department had been considered but was ultimately rejected, though she did not say what the reasoning was for that decision. In recent weeks, agriculture interests had urged against the department’s merger.

The department does lose a number of boards and commissions, as well as the Office of Racing Commissioner. Horse racing oversight is moved to the Gaming Control Board, with the board’s executive director overseeing the tracks.

Agriculture officials confirmed that current director Don Koivisto would remain in his post for the foreseeable future, but Boyd would not comment whether DEQ Director Steven Chester or DNR Director Becky Humphries would be considered for the new DNRE post. Nor would she comment whether a search was being conducted to fill that post.

Granholm appointed Bruce Rasher of Ann Arbor, head of the global brownfield practice for CB Richard Ellis, to oversee weaving the two departments back together.

“Clearly the staffs of the two departments need to be integrated in terms of function and reporting and where they housed,” Rasher said in a media call to discuss the coming changes. “I will also be looking at synergies for cost savings.

“In addition we need to assure an orderly transition for receiving input from citizens formerly through boards and commissions to the new director,” Rasher said.

The orders eliminate or consolidate a number of the boards and commissions, particularly within the DNR. The Natural Resources Commission, currently formally the Commission of Natural Resources, absorbs the duties of the Citizens Commission on State Parks and the Water Resources Conservation Advisory Council.

The order creating the department (2009-45) also provides for the governor to select the chair of the commission, calling into question the tenure of the current chair, Keith Charters (R-Traverse City). The order does not change the terms of appointments of any of the sitting members of the commission.

The decisions of the commission would remain independent of the director and could only be appealed to the courts.

But the commission is limited in its communications. “Members of the Natural Resources Commission shall refer all legal, legislative, and media contacts to the Department,” the order said.

The various trails oversight boards are consolidated into a new Trails Advisory Council that would oversee snowmobile and off-road vehicle trails as well as footpaths owned or operated by the state. But the council will have an advisory workgroup to specifically deal with snowmobile trails.

The order also revives the Environmental Science Review Board within the new department. But rather than a standing board as the former was, the board would be constituted to look at specific issues as needed by the director and would consist of seven people with expertise in the various sciences as needed for the issue.

From the DEQ, the Site Review Board is abolished and its duties are moved to the department. The Climate Action Council and the Aquatic Nuisance Species Council are merely eliminated (EO 2009-44).

In the Department of Agriculture, the Agricultural Preservation Fund Board, the Family Farm Development Authority, and the Pesticide Advisory Committee are eliminated with the functions moved to the department.

Granholm also altered the Great Lakes Wind Council, changing its membership to accommodate the loss of the DNR and DEQ directors and the gain of the DNRE director. The governor also acceded to the council’s request to live on longer, extending it through the coming year. Council members had wanted input into the process of fleshing out their report on prime offshore wind generation locations.

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