Bill Summary – FastDemocracy

SENATE BILL NO. 1181
     December 04, 2024, Introduced by Senator BAYER and referred to the Committee on Energy and
       Environment.
          A bill to amend 1994 PA 451, entitled
    "Natural resources and environmental protection act,"
    by amending sections 32707 and 32723 (MCL 324.32707 and 324.32723),
    section 32707 as amended by 2008 PA 182 and section 32723 as
    amended by 2008 PA 180, and by adding section 32707a.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 32707. (1) Except as provided in subsections (2) and (3),
 by April 1 each year, a person who that is required to register
 under section 32705 or holds a permit under section 32723 shall
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 file a report annually with the department on a form provided by
 the department. Reports shall be submitted by April 1 of each year.
 Except as provided in subsection (8), reports shall must include
 the following information:
       (a) The amount and rate of water withdrawn on an annual and
 monthly basis.
       (b) The source or sources of the water supply.
       (c) The use or uses of the water withdrawn.
       (d) The amount of consumptive use of water withdrawn.
       (e) If the source of the water withdrawn is groundwater, the
 location of the well or wells in latitude and longitude, with the
 accuracy of the reported location data to within 25 feet.
       (f) If the source of water withdrawn is groundwater, the
 static water level of the aquifer or aquifers, if practicable.
       (g) Other information specified by rule of the department.
       (h) At the discretion of the registrant or permit holder, the
 baseline capacity of the withdrawal and, if applicable, a
 description of the system capacity.
       (i) At the discretion of the registrant or permit holder, the
 amount of water returned to the source watershed.
       (j) Beginning in 2010, an acknowledgment that the registrant
 has reviewed applicable environmentally sound and economically
 feasible water conservation measures prepared under section 32708a.
       (2) If a person reports the information required by this
 section to the department in conjunction with a permit or for any
 other purpose, that reporting, upon on approval of the department,
 satisfies the reporting requirements of this section.
       (3) The owner of a farm who that reports water use under
 section 32708 is not required to report under subsection (1).
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       (4) The department may, upon on request from a person required
 to report under this section, accept a formula or model that
 provides to the department's satisfaction the information required
 in subsection (1).
       (5) The department shall develop forms for reporting under
 this section that minimize paperwork and allow for a notification
 to the department instead of a report if the annual amount of water
 withdrawn by a person required to report under this section is
 within 4% of the amount last reported and the other information
 required in subsection (1) has not changed since the last year in
 which a report was filed.
       (6) Information described in section 32701(d)(i)(B) that is
 provided to the department under subsection (1)(h) is exempt from
 disclosure under the freedom of information act, 1976 PA 442, MCL
 15.231 to 15.246, and shall must not be disclosed unless the
 department determines that the withdrawal is causing an adverse
 resource impact.
       (7) Except as otherwise provided in this subsection, a person
 who that files an annual report or notification under this section
 shall annually remit a water use reporting fee of $200.00 $1.00 per
 centum cubic foot of water withdrawn annually, as reported under
 subsection (1)(a), to the department. Water The water use reporting
 fees shall fee must be remitted to the department in conjunction
 with the annual report or notification submitted under this
 section. The department shall transmit water use reporting fees
 collected under this section to the state treasurer to be credited
 to the water use protection fund created in section 32714. A water
 use reporting fee is not required for a report or notification
 related to a farm that reports withdrawals under section 32708 or
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 for a report under subsection (8).
       (8) A person who that withdraws less than 1,500,000 gallons of
 water in any year shall indicate this fact on the reporting form
 and is not required to provide information under subsection (1)(a)
 or (d). A person who that withdraws less than 1,500,000 gallons of
 water in any year is not required to pay the water use reporting
 fee under subsection (7).
       Sec. 32707a. If a person that holds a permit under section
 32723 proposes to increase withdrawal capacity beyond the amount
 reported in the most recent annual report submitted under section
 32707(1) and the proposed increase will result in necessary
 infrastructure improvements to accommodate an increased withdrawal
 capacity, the person that holds the permit shall not pass on to the
 public any costs associated with the infrastructure improvements.
       Sec. 32723. (1) Except as provided in subsection (13), all of
 the following persons shall obtain a water withdrawal permit prior
 to before making the a water withdrawal:
       (a) A person who that proposes to develop withdrawal capacity
 to make a new withdrawal of more than 2,000,000 gallons of water
 per day from the waters of the state to supply a common
 distribution system.
       (b) A person who that proposes to develop increased withdrawal
 capacity beyond baseline capacity of more than 2,000,000 gallons of
 water per day from the waters of the state to supply a common
 distribution system.
       (c) A person who that proposes to develop withdrawal capacity
 to make a new or increased large quantity withdrawal of more than
 1,000,000 gallons of water per day from the waters of the state to
 supply a common distribution system that a site-specific review has
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 determined is a zone C withdrawal.
       (d) A person who that proposes to develop a new or increased
 withdrawal capacity that will result in an intrabasin transfer of
 more than 100,000 gallons per day average over any 90-day period.
       (2) A person shall apply for a water withdrawal permit under
 this section by submitting an application to the department
 containing that contains the information described in section
 32706c(1)(a) to (e) 32706c(4) and an evaluation of existing
 hydrological and hydrogeological conditions. If the applicant
 proposes to undertake a preventative measure along with the
 withdrawal, the property owner applicant shall provide the
 department with a detailed description of the preventative measure
 and relevant information as to how the preventative measure will be
 implemented. In addition, the applicant shall submit an application
 fee in the amount of $2,000.00. The department shall transmit
 application fees collected under this section to the state
 treasurer to be credited to the water use protection fund created
 in section 32714.
       (3) An application submitted under subsection (2) is
 considered to be administratively complete effective 30 days after
 it is received by the department unless the department notifies the
 applicant, in writing, during this 30-day period that the
 application is not administratively complete or that the
 application fee required to be accompanied with the application
 under subsection (2) has not been paid. If the department
 determines that the application is not administratively complete,
 the notification shall must specify the information necessary to
 make the application administratively complete. If the department
 notifies the applicant as provided in this subsection, the 30-day
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 period is tolled until the applicant submits to the department the
 specified information or application fee.
       (4) The department shall provide public notification of its
 receipt of applications under this section and shall provide a
 public comment period of not less than 45 days before applications
 are acted upon on under subsection (5).
       (5) The department shall make a decision whether to grant or
 deny a water withdrawal permit under this section within 120 days
 of after receipt of an administratively complete application.
       (6) The department shall issue a water withdrawal permit under
 subsection (1)(a), (b), or (c) if all of the following conditions
 are met:
       (a) All water withdrawn, less any consumptive use, is
 returned, either naturally or after use, to the source watershed.
       (b) The withdrawal will be implemented so as to ensure that
 the proposal will result in no individual or cumulative adverse
 resource impacts. Cumulative The department shall evaluate
 cumulative adverse resource impacts under this subdivision shall be
 evaluated by the department based upon on available information
 gathered by the department.
       (c) Subject to section 32726, the withdrawal will be
 implemented so as to ensure that it is in compliance with all
 applicable local, state, and federal laws as well as all legally
 binding regional interstate and international agreements, including
 the boundary waters treaty of 1909.
       (d) The proposed use is reasonable under common law principles
 of water law in Michigan.this state.
       (e) For permit applications received on or after January 1,
 2009, the applicant has self-certified that he or she the applicant
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 is in compliance with environmentally sound and economically
 feasible water conservation measures developed by the applicable
 water user's sector under section 32708a or has self-certified that
 he or she the applicant is in compliance with environmentally sound
 and economically feasible water conservation measures developed for
 the water use associated with that specific withdrawal.
       (f) The department determines that the proposed withdrawal
 will not violate public or private rights and limitations imposed
 by Michigan water law laws or other Michigan common law duties
 applicable in this state.
       (g) The withdrawal does not exceed 2,000,000 gallons per day.
       (7) The department shall issue a water withdrawal permit under
 subsection (1)(d) if the transfer complies with section 4.9 of the
 compact.
       (8) In reviewing a proposed preventative measure, the
 department shall consider the effect of the preventative measure on
 preventing an adverse resource impact by diminishing the effect of
 the withdrawal on stream or river flow or the temperature regime of
 the stream or river. If the department approves a preventative
 measure in conjunction with a water withdrawal permit under this
 section, the department shall enter into a legally enforceable
 implementation schedule for completion of the preventative measure.
       (9) A proposed use for which a water withdrawal permit is
 issued under this section shall must be considered to satisfy the
 requirements of section 4.11 of the compact.
       (10) A permit issued under part 31 pursuant to in accordance
 with 33 USC 1326(b) shall be is considered sufficient to
 demonstrate that there will not be an adverse resource impact under
 section 32721 and satisfies the conditions for a water withdrawal
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 permit under this section. Upon On receipt of an application under
 this section and evidence that the applicant holds a part 31 permit
 described in this subsection, the department shall grant the
 applicant a water withdrawal permit under this subsection.
       (11) The department may revoke a water withdrawal permit
 issued under this section if the department determines following a
 hearing, based upon on clear and convincing scientific evidence,
 that the withdrawal is causing an adverse resource impact.
       (12) A person who that is aggrieved by a determination of the
 department under this section related to a water withdrawal permit
 may file a sworn petition with the department setting forth the
 grounds and reasons for the complaint and asking for a contested
 case hearing on the matter pursuant to in accordance with the
 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
 24.328. A petition filed more than 60 days after action on the
 water withdrawal permit may be rejected by the department as being
 untimely. The department shall issue a final decision on a petition
 for a contested case hearing within not later than 6 months after
 receiving the petition. A determination, action, or inaction by the
 department following a contested case hearing is subject to
 judicial review as provided in the administrative procedures act of
 1969, 1969 PA 306, MCL 24.201 to 24.328.
       (13) The following withdrawals are not required to obtain a
 water withdrawal permit under this section:
       (a) A withdrawal by a community supply that holds a permit
 under the safe drinking water act, 1976 PA 399, MCL 325.1001 to
 325.1023.
       (b) Seasonal withdrawals of not more than 2,000,000 gallons of
 water per day average in any consecutive 90-day period to supply a
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 common distribution system unless the withdrawals result in a
 diversion.
       (c) A withdrawal for the production of bottled drinking water
 approved by the department under a water source review conducted
 under in accordance with section 17 of the safe drinking water act,
 1976 PA 399, MCL 325.1017.
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Statutes affected: 
Senate Introduced Bill: 324.32707, 324.32723