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SENATE BILL NO. 1046
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 32705, 32708a, 32713, and 32723 (MCL
324.32705, 324.32708a, 324.32713, and 324.32723), sections 32705
and 32723 as amended by 2008 PA 180, section 32708a as amended by
2008 PA 182, and section 32713 as amended by 2008 PA 186, and by
adding section 32723a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 32705. (1) Except as otherwise provided in this section, 1
the owner of real property who that intends to develop capacity on 2
June 18, 2026, Introduced by Senators BAYER, POLEHANKI, MCMORROW, IRWIN,
HERTEL, CHANG, SHINK and GEISS and referred to Committee on Energy and
Environment.
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RMH S06575'26_SB1046_INTR_1 ji7r6z
that property to make a new or increased large quantity withdrawal 1
from the waters of this the state shall register the withdrawal 2
with the department after using the assessment tool, if required 3
under this part, and prior to before beginning that withdrawal. A 4
registration under this section may be made using the online 5
registration process. 6
(2) The following persons are not required to register under 7
this section: 8
(a) Subject to subdivision (c), a person who that has 9
previously registered for that property under this part or the 10
owner of real property containing that contains the capacity to 11
make a withdrawal that was previously requested under this part, 12
unless the property owner develops new or increased withdrawal 13
capacity on the property of an additional 100,000 gallons of water 14
per day from the waters of the state. 15
(b) A community supply required to obtain a permit under the 16
safe drinking water act, 1976 PA 399, MCL 325.1001 to 325.1023. 17
(c) A person required to obtain a permit under section 32723 18
or 32723a. 19
(d) The owner of a noncommercial well located on the following 20
residential property: 21
(i) Single-family residential property unless that well is a 22
lake augmentation well. 23
(ii) Multifamily residential property not exceeding 4 24
residential units and not more than 3 acres in size unless that 25
well is a lake augmentation well. 26
(3) Subsection (1) does not limit a property owner's ability 27
to withdraw water from a test well prior to before registration if 28
the test well is constructed in association with the development of 29
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new or increased withdrawal capacity and used only to evaluate the 1
development of new or increased withdrawal capacity. 2
(4) A registration under this section by the owner of a farm 3
in which the withdrawal is intended for an agricultural purpose, 4
including irrigation for an agricultural purpose, may be submitted 5
to the department of agriculture and rural development instead of 6
the department. 7
(5) A registration submitted under this section that is not 8
submitted via the online registration process shall must be on a 9
form provided by the department or the department of agriculture 10
and rural development, as appropriate. 11
(6) In calculating To calculate the total amount of an 12
existing or proposed withdrawal for the purpose of this section, a 13
person shall combine all separate withdrawals that the person makes 14
or proposes to make, whether or not these withdrawals are for a 15
single purpose or are for related but separate purposes. 16
(7) The department shall aggregate information received by the 17
this state related to large quantity withdrawal capacities within 18
the this state and reported large quantity withdrawals in the this 19
state. 20
(8) Unless a property owner develops the capacity to make the 21
new or increased large quantity withdrawal within 18 months after 22
the property owner registers under subsection (1), the registration 23
is no longer valid. 24
Sec. 32708a. (1) Not later than March 31, 2009, the The 25
department shall prepare, based upon on recommendations from 26
representative trade associations, a set of generic water 27
conservation measures that are applicable to all persons making 28
that make large quantity withdrawals. The department shall post 29
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these the generic water conservation measures on its the 1
department's website. 2
(2) Subject to subsection (3), each water user's sector may 3
prepare and submit to the department water conservation measures 4
that are applicable for water users within its sector. Upon On 5
receipt of water conservation measures from a water user's sector, 6
the department shall review the water conservation measures, and, 7
if the department determines that those water conservation measures 8
are appropriate for that sector, the department shall accept those 9
water conservation measures. Upon On acceptance, the department 10
shall post the water conservation measures on its the department's 11
website, and those the water conservation measures shall supersede 12
the generic water conservation measures prepared under subsection 13
(1) for water users within that sector. If the department 14
determines that the water conservation measures are not appropriate 15
for the water user's sector, the department shall provide comments 16
to the water user's sector and suggestions that would result in the 17
department's acceptance of the water conservation measures. A water 18
user's sector may resubmit water conservation measures in response 19
to the department's comments and suggestions. 20
(3) Water The commission of agriculture and rural development 21
shall develop and approve water conservation measures for 22
agricultural purposes. shall be developed and approved by the 23
commission of agriculture and shall The water conservation measures 24
developed under this subsection must be updated annually as part of 25
the process for review and update of generally accepted 26
agricultural and management practices under the Michigan right to 27
farm act, 1981 PA 93, MCL 286.471 to 286.474. Water conservation 28
measures approved under this subsection shall must be posted on the 29
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department of agriculture's agriculture and rural development's 1
website and shall must be forwarded to the department for posting 2
on its the department's website. 3
(4) By April 1, 2010, the department shall report to the 4
standing committees of the legislature with jurisdiction primarily 5
related to natural resources and the environment on the status of 6
the preparation and acceptance of water user sector conservation 7
measures. 8
(4) (5) If the department receives a registration for a zone C 9
withdrawal, the department shall notify all other registrants and 10
permit holders whose withdrawals are from the same water source as 11
the zone C withdrawal of the status of the water source. Upon On 12
receipt of notification under this subsection, each of these 13
registrants and permit holders shall review and consider 14
implementing the applicable water conservation measures prepared 15
under this section. 16
(5) (6) Compliance with water conservation measures does not 17
authorize a water withdrawal that is otherwise prohibited by law. 18
(6) The department shall publish a report on the department's 19
website that contains the following information: 20
(a) Beginning July 1, 2027, and by each July 1 thereafter, the 21
total amount of water used by each data center in each public water 22
supply's service area for the preceding calendar year. Not later 23
than June 1, 2027, and by each June 1 thereafter, each public water 24
supply shall submit to the department the total water usage data 25
described in this subdivision. 26
(b) Beginning September 1, 2028, and by each September 1 27
thereafter, if a person is permitted under section 32723a, the 28
amount of wastewater effluent and the priority pollutants present 29
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in the wastewater effluent, as identified in 40 CFR part 423, 1
appendix A, generated in the preceding calendar year. Not later 2
than July 1, 2028, and by each July 1 thereafter, each person that 3
is permitted under section 32723a shall submit to the department 4
the wastewater effluent information described in this subdivision. 5
The department may conduct an inspection during normal business 6
hours to ensure accurate reporting of the wastewater effluent 7
information described in this subdivision. 8
(7) As used in this section: 9
(a) "Data center" means a facility that is designed and 10
intended for housing, and does house, equipment to centralize the 11
storage and processing of data. 12
(b) (a) "Permit holders" means persons holding that hold a 13
permit under section 32723 and persons holding that hold a permit 14
under the safe drinking water act, 1976 PA 399, MCL 325.1001 to 15
325.1023. 16
(c) (b) "Water conservation measures" means environmentally 17
sound and economically feasible water conservation measures. 18
Sec. 32713. (1) The department may request the attorney 19
general to commence a civil action for appropriate relief, 20
including a permanent or temporary injunction, for a violation of 21
this part or a rule promulgated under this part, including 22
falsifying a record submitted under this part. An action under this 23
section shall must be brought in the circuit court for the county 24
of Ingham County or for the county in which the defendant is 25
located, resides, or is doing business. The court has jurisdiction 26
to restrain the violation and to require compliance. 27
(2) In addition to any other relief granted under subsection 28
(1), the court may impose a civil fine as follows: 29
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(a) For a person who that knowingly violates section 32721 or 1
32723 or the terms of a permit issued under section 32723, a civil 2
fine of not more than $10,000.00 per day of violation. 3
(b) For a person that knowingly or unknowingly violates 4
section 32723a or the terms of a permit issued under section 5
32723a, a civil fine as follows: 6
(i) For a first offense within a 6-month period, a civil fine 7
of not more than $1,000.00. 8
(ii) For a second offense within a 6-month period, a civil fine 9
of not more than $5,000.00. 10
(iii) For a third or subsequent offense within a 6-month period, 11
the department may revoke the permit after notice and an 12
opportunity for a hearing. 13
(c) (b) For all other violations of this part, a civil fine of 14
not more than $1,000.00. 15
(3) In addition to a fine imposed under subsection (2), the 16
attorney general may file a suit in a court of competent 17
jurisdiction to recover the full value of the costs of surveillance 18
and enforcement by the this state resulting from the violation. 19
Sec. 32723. (1) Except as provided in subsection (13), the 20
following persons shall obtain a water withdrawal permit prior to 21
before making the withdrawal: 22
(a) A person who that proposes to develop withdrawal capacity 23
to make a new withdrawal of more than 2,000,000 gallons of water 24
per day from the waters of the state to supply a common 25
distribution system. 26
(b) A person who that proposes to develop increased withdrawal 27
capacity beyond baseline capacity of more than 2,000,000 gallons of 28
water per day from the waters of the state to supply a common 29
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distribution system. 1
(c) A person who that proposes to develop withdrawal capacity 2
to make a new or increased large quantity withdrawal of more than 3
1,000,000 gallons of water per day from the waters of the state to 4
supply a common distribution system that a site-specific review has 5
determined is a zone C withdrawal. 6
(d) A person who that proposes to develop a new or increased 7
withdrawal capacity that will result in an intrabasin transfer of 8
more than 100,000 gallons per day average over any 90-day period. 9
(2) A person shall apply for a water withdrawal permit under 10
this section by submitting an application to the department 11
containing that contains the information described in section 12
32706c(1)(a) to (e) 32706c(1) and an evaluation of existing 13
hydrological and hydrogeological conditions. If the applicant 14
proposes to undertake a preventative measure along with the 15
withdrawal, the property owner shall provide the department with a 16
detailed description of the preventative measure and relevant 17
information as to how the preventative measure will be implemented. 18
In addition, the applicant shall submit an application fee in the 19
amount of $2,000.00. The department shall transmit application fees 20
collected under this section to the state treasurer to be credited 21
to the water use protection fund created in section 32714. 22
(3) An application submitted under subsection (2) is 23
considered to be administratively complete effective 30 days after 24
it is received by the department receives the application, unless 25
the department notifies the applicant, in writing, during this 30-26
day period, that the application is not administratively complete 27
or that the application fee required to be accompanied with the 28
application has not been paid. If the department determines that 29
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the application is not administratively complete, the notification 1
shall written notice must specify the information necessary to make 2
the application administratively complete. If the department 3
notifies the applicant as provided in this subsection, the 30-day 4
period is tolled until the applicant submits to the department the 5
specified information or application fee, as applicable. 6
(4) The department shall provide public notification of its 7
the receipt of applications an application under this section and 8
shall provide a public comment period of not less than 45 days 9
before applications are acted upon on under subsection (5). 10
(5) The Not later than 120 days after the department receives 11
an administratively complete application, the department shall make 12
a decision whether to grant or deny a water withdrawal permit under 13
this section. within 120 days of receipt of an administratively 14
complete application. 15
(6) The department shall issue a water withdrawal permit under 16
subsection (1)(a), (b), or (c) if all of the following conditions 17
are met: 18
(a) All water withdrawn, less any consumptive use, is 19
returned, either naturally or after use, to the source watershed. 20
(b) The withdrawal will be implemented so as to ensure that 21
the proposal will result in no individual or cumulative adverse 22
resource impacts. Cumulative The department shall evaluate the 23
cumulative adverse resource impacts under this subdivision shall be 24
evaluated by the department based upon on available information 25
gathered by the department. 26
(c) Subject to section 32726, the withdrawal will be 27
implemented so as to ensure that it the withdrawal is in compliance 28
with all applicable local, state, and federal laws, as well as and 29
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all legally binding regional interstate and international 1
agreements, including the boundary waters treaty of 1909. 2
(d) The proposed use is reasonable under common law principles 3
of water law in Michigan.this state. 4
(e) For permit applications received on or after January 1, 5
2009, the The applicant has self-certified that he or she the 6
applicant is in compliance with environmentally sound and 7
economically feasible water conservation measures developed by the 8
applicable water user's sector under section 32708a or has self-9
certified that he or she the applicant is in compliance with 10
environmentally sound and economically feasible water conservation 11
measures developed for the water use associated with that specific 12
withdrawal. 13
(f) The department determines that the proposed withdrawal 14
will not violate public or private rights and limitations imposed 15
by Michigan water law or other Michigan common law duties. 16
(7) The department shall issue a water withdrawal permit under 17
subsection (1)(d) if the transfer complies with section 4.9 of the 18
compact. 19
(8) In reviewing a proposed preventative measure, the 20
department shall consider the effect of the preventative measure on 21
preventing an adverse resource impact by diminishing the effect of 22
the withdrawal on stream or river flow or the temperature regime of 23
the stream or river. If the department approves a preventative 24
measure in conjunction with a water withdrawal permit under this 25
section, the department shall enter into a legally enforceable 26
implementation schedule for completion of the preventative measure. 27
(9) A proposed use for which a water withdrawal permit is 28
issued under this section shall be is considered to satisfy the 29
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requirements of section 4.11 of the compact. 1
(10) A permit issued under part 31 pursuant to in accordance 2
with 33 USC 1326(b) shall be is considered sufficient to 3
demonstrate that there will not be an adverse resource impact under 4
section 32721 and satisfies the conditions for a water withdrawal 5
permit under this section. Upon On receipt of an application under 6
this section and evidence that the applicant holds a part 31 permit 7
described in this subsection, the department shall grant the 8
applicant a water withdrawal permit under this subsection. 9
(11) The department may revoke a water withdrawal permit 10
issued under this section if the department determines following a 11
hearing, based upon on clear and convincing scientific evidence, 12
that the withdrawal is causing an adverse resource impact. 13
(12) A person who that is aggrieved by a determination of the 14
department under this section related to a water withdrawal permit 15
may file a sworn petition with the department setting that sets 16
forth the grounds and reasons for the complaint and asking asks for 17
a contested case hearing on the matter pursuant to in accordance 18
with the administrative procedures act of 1969, 1969 PA 306, MCL 19
24.201 to 24.328. A petition filed more than 60 days after action 20
on the water withdrawal permit may be rejected by the department as 21
being untimely. The department shall issue a final decision on a 22
petition for a contested case hearing within not later than 6 23
months after receiving the petition is received. A determination, 24
action, or inaction by the department following a contested case 25
hearing is subject to judicial review as provided in the 26
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 27
24.328. 28
(13) The following withdrawals persons are not required to 29
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obtain a water withdrawal permit under this section: 1
(a) A withdrawal by a community supply that holds a permit 2
under the safe drinking water act, 1976 PA 399, MCL 325.1001 to 3
325.1023. 4
(b) Seasonal withdrawals A person that makes a seasonal 5
withdrawal of not more than 2,000,000 gallons of water per day 6
average in any consecutive 90-day period to supply a common 7
distribution system unless the withdrawals result in a diversion. 8
(c) A person that makes a withdrawal for the production of 9
bottled drinking water approved by the department under a water 10
source review conducted under section 17 of the safe drinking water 11
act, 1976 PA 399, MCL 325.1017. 12
(d) A person that is granted a permit under section 32723a. 13
Sec. 32723a. (1) Except as provided in subsection (12), 14
beginning on July 1, 2027, a person that uses, or is expected to 15
use, 550,000 gallons of water or more per day for consumptive use, 16
based on a yearly average, shall comply with all of the following: 17
(a) Not withdraw from the waters of the state. 18
(b) Partner with a community supply that holds a permit under 19
the safe drinking water act, 1976 PA 399, MCL 325.1001 to 325.1023, 20
to supply the total amount of water per day that the person uses or 21
is expected to use. 22
(c) Apply for a permit under this section. 23
(2) A person that uses or is expected to use 550,000 gallons 24
of water or more per day for consumptive use, based on a yearly 25
average, shall apply for a permit on a form and in a manner 26
prescribed by the department. The person shall include all of the 27
following with a permit application under this section: 28
(a) The following information related to the applicant's 29
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consumptive use of the water: 1
(i) The amount and rate of water to be used. 2
(ii) Whether the water use will be intermittent. 3
(b) Proof of compliance with the public hearing requirements 4
provided under subsection (8), including, but not limited to, a 5
copy of the public notices, affidavits of any location where notice 6
was published, and evidence that the notice was published in an 7
additional language other than English, if applicable. 8
(c) An application fee of $2,000.00. 9
(3) A permit application submitted under subsection (2) is 10
considered administratively complete 30 days after the department 11
receives the permit application unless the department notifies the 12
applicant, in writing, during this 30-day period that the 13
application is not administratively complete or that the 14
application fee has not been paid. If the department determines 15
that the permit application is not administratively complete, the 16
written notice must specify the information necessary to make the 17
permit application administratively complete. If the department 18
notifies the applicant as provided in this subsection, the 30-day 19
period is tolled until the applicant submits to the department the 20
specified information or application fee, as applicable. 21
(4) After the department determines that an application is 22
administratively complete, the department shall provide public 23
notification of its receipt of the application and provide a public 24
comment period of not less than 30 days before applications are 25
acted on under subsection (5). 26
(5) The department shall approve or deny the permit 27
application not later than 120 days after the public comment period 28
under subsection (4) ends. The department shall grant the permit 29
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only if the department determines all of the following requirements 1
are met: 2
(a) Water use effectiveness. 3
(b) Water availability and long-term sustainability. 4
(c) Infrastructure capacity. 5
(d) Minimized environmental impacts. 6
(6) If the department denies a permit application, the 7
department shall notify the applicant of the denial within 10 days 8
and state the reasons for the denial. 9
(7) A permit granted under this section is valid for 10 years 10
from the date of issuance and is nontransferable. 11
(8) Not less than 60 days before a person submits an 12
application for a permit under this section, the person shall 13
complete not less than 3 public hearings and allow for public 14
comment. Each public hearing must be held in the municipality in 15
which the person will conduct the water use. Not less than 30 days 16
before each public hearing held under this subsection, the person 17
shall publish notice of the public hearing and a summary of the 18
need for the permit on social media, the municipal or local 19
government offices, and schools in the area within which the person 20
applying for the permit plans to operate. At least 1 public hearing 21
must be conducted on a Saturday or Sunday. At least 1 public 22
hearing must be conducted at or after 5 p.m. At least 1 public 23
hearing must be conducted at or before 12 p.m. At each public 24
hearing, the person shall provide printed outreach materials, 25
including a project description, site map, and projected water use 26
amounts, that are published in English and in the second-most 27
common language spoken in the community in which the person 28
applying for the permit plans to operate. 29
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(9) Not later than 7 days after the public hearings are 1
completed under subsection (8), the person that submits an 2
application for a permit under this section shall provide to the 3
department a transcript of all the public comments received during 4
the public hearings. 5
(10) A person that is granted a permit under this section 6
shall not use more than 2,000,000 gallons of water per day for 7
consumptive use. 8
(11) Not later than July 1, 2028, and by each July 1 9
thereafter, each community supply that partners with a person that 10
is granted a permit under this section shall report to the 11
department if that person uses more than 2,000,000 gallons of water 12
per day for consumptive use. 13
(12) The following persons are not required to obtain a permit 14
under this section: 15
(a) A person that uses water only for agricultural purposes. 16
(b) A community supply that holds a permit under the safe 17
drinking water act, 1976 PA 399, MCL 325.1001 to 325.1023. 18
(13) The department may promulgate rules in accordance with 19
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 20
to 24.328, to implement this section. 21
(14) As used in this section, "water use effectiveness" means 22
a calculation of a person's total water input divided by the 23
person's total water consumption. 24