SB 951

SENATE BILL NO. 951
A bill to amend 1976 PA 399, entitled
"Safe drinking water act,"
by amending sections 4 and 17 (MCL 325.1004 and
325.1017), section 4 as amended by 2008 PA 187 and section 17 as amended by
2008 PA 188, and by adding section 17a.
the people of the state of michigan enact:
Sec. 4. (1) A supplier of water shall file
with the department the plans and specifications of
the entire for any proposed waterworks
system that will be owned or operated by the
supplier , unless
the department determines that its existing records are adequate. and be issued a construction
permit by the department in accordance with this section. A supplier of
water shall provide a general plan of the waterworks system for each
public water supply shall be provided to the
department by a supplier of water and shall
be updated update the general plan as
determined necessary by the department.
(2) Upon On receipt of
the plans and specifications for a proposed waterworks system under subsection (1), the department shall evaluate
the adequacy of the proposed system to protect the public health by supplying and supply water
meeting that meets the
state drinking water standards. and, if If applicable,
the department shall evaluate the impact of the
proposed system as provided in subsections (3) and (4). In addition, for a
proposed waterworks system by a community supply that will provide capacity for
a new or increased large quantity withdrawal, the department shall utilize the
assessment tool to evaluate the proposed withdrawal associated with the
proposed waterworks system and shall confirm
the assessment tool's determination. Prior to Before the implementation of the assessment tool
under section 32706a of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.32706a, the
department shall evaluate the proposed withdrawal based upon on reasonably
available information. If the department determines that the proposed
withdrawal for a community supply is a zone C withdrawal, the community supply
shall certify that it is implementing applicable environmentally sound and
economically feasible water conservation measures prepared under section 32708a
of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.32708a, that the community supply considers to
be reasonable, or the
community supply shall certify that it is implementing environmentally
sound and economically feasible water conservation measures developed for the
water use associated with that specific withdrawal that the community supply
considers to be reasonable. The department shall also conduct a capacity
assessment for a proposed community supply or nontransient noncommunity water
supply and determine if the system has the technical, financial, and managerial
capacity to meet all the requirements of this
act and the rules promulgated under this act, on the date of commencement of operations commence. If upon on evaluation the department determines the plans and
specifications to be are inadequate or the capacity assessment shows the
system to be is inadequate,
the department may return the plans and specifications to the applicant and
require additions or modifications as may be the department determines is appropriate. The
department may reject plans and specifications for a waterworks system that
will not satisfactorily provide for the protection of the public health or, if
applicable, will not meet the standards provided in subsection (4). The department may deny a permit for construction of a
proposed community supply or a nontransient noncommunity water supply if the
capacity assessment shows that the proposed system does not have adequate
technical, financial, or managerial capacity to meet the requirements of this
act and the rules promulgated under this act.
(3) The department
shall evaluate the impact of a proposed waterworks system for a community
supply that will do any of the following:
(a) Provide new
total designed withdrawal capacity of more than 2,000,000 gallons of water per
day from the waters of the state.
(b) Provide an
increased total designed withdrawal capacity of more than 2,000,000 gallons of
water per day from the waters of the state beyond the system's total designed
withdrawal capacity.
(c) Provide new or
increased total designed withdrawal capacity for 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 the department
confirms is a zone C withdrawal.
(d) Provide new
total designed withdrawal capacity or an increased total designed withdrawal
capacity that will result in an intrabasin transfer of more than 100,000
gallons per day average over any 90-day period.
(4) The Before the department
issues a construction permit under this section, the department shall
provide public notice that it the department is conducting an evaluation under
subsection (3) and shall provide a public
comment period of not less than 45 days before making a determination on that the evaluation.
The department shall reject the plans and specifications under subsection (1) and not issue a construction permit for
a proposed waterworks system evaluated under subsection (3) if it the department determines
that the proposed system will not meet the applicable standard provided in
section 32723 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.32723. However, the department may approve the plans and
specifications provided under subsection (1) and issue
a construction permit for a proposed waterworks system evaluated under
subsection (3) for a community supply owned by a political subdivision that the
department determines will not meet the applicable standard provided in section
32723 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.32723, if the plans and
specifications do not result in an intrabasin transfer of more than 100,000
gallons per day average over any 90-day period and both of the following
conditions are met:
(a) The department
determines that there is no feasible and prudent alternative location for the
withdrawal.
(b) The department
includes in the approval conditions related to depth, pumping capacity, rate of
flow, and ultimate use that ensure that the environmental impact of the
withdrawal is balanced by the public benefit of the withdrawal related to
public health, safety, and welfare. This subdivision does not confer upon give the
department any the authority
to require a person to connect or to remain
connected to an existing drinking water supply system owned by a political
subdivision.
(5) The
department's approval of a proposed waterworks
system construction permit under this
section shall be considered to satisfy satisfies the requirements of section 4.11 of the
compact.
(6) Before commencing the beginning construction
of a waterworks system or an alteration, addition, or improvement to a system,
a supplier of water shall submit the plans and specifications under subsection (1) for the improvements to the
department and secure from the department a construction
permit for construction as provided
by rule. Plans and specifications submitted to the department shall must be
prepared by a professional engineer licensed under article 20 of the
occupational code, 1980 PA 299, MCL 339.2001 to 339.2014. A contractor,
builder, or supplier of water shall not engage in or begin the construction of
a waterworks system or an alteration, addition, or improvement to a waterworks
system until a valid construction permit for the construction has been secured from is issued by the department
under this section. A contractor, builder, or supplier of water who permits or that allows
construction to proceed without a valid construction permit, or in a manner not in accordance
with the plans and specifications approved by the department, violates this
act. A supplier of water shall not issue a voucher or check or in any other way
expend money or provide consideration for construction of a waterworks system
unless a valid construction
permit is issued by the department. is in effect. The
department may issue a construction permit with
conditions to correct minor design deficiencies. If eligible, a supplier may
request an expedited review of an application for a construction
permit under section 4a. A construction permit
issued under this section does not expire.
(7) The department
may deny a construction permit for construction of a waterworks system or an alteration,
addition, or improvement to a waterworks system if the most recent
capacity assessment shows that the waterworks system does not have adequate
technical, financial, or managerial capacity to meet the requirements of this
act and the rules promulgated under this act, and the deficiencies identified
in that capacity assessment remain uncorrected, unless the proposed
construction will remedy the deficiencies. The
department may deny a construction permit of a proposed community supply or a
nontransient noncommunity water supply if the capacity assessment shows that
the proposed system does not have adequate technical, financial, or managerial
capacity to meet the requirements of this act and the rules promulgated under
this act.
(8) The department
may verbally approve minor modifications of a construction permit issued by the
department as a result of unforeseen site conditions that become apparent
during construction. Minor modifications include, but are not limited to,
extending a hydrant lead or routing a water main around a manhole. A supplier making that makes a
request for a modification shall provide to the department all relevant
information required under this section and the application form provided by
the department related to the modification. A supplier shall obtain written
approval from the department for all modifications to a waterworks system
except when the department provides verbal approval for a minor modification as
provided for in this subsection. A supplier receiving
that receives a written or verbal
approval from the department shall submit revised plans and specifications to
the department within not later than 10 days from
after the date of approval.
(9) If a supplier
seeks confirmation of the department's verbal approval of a minor modification
under subsection (8), the supplier shall notify the department electronically,
at an address specified by the department, with a detailed description of the request
for the modification. The department shall make reasonable efforts to respond
within 2 business days, confirming whether the request has been is approved
or not approved. If the department has not responded within 2 business days
after the department receives the detailed description, the verbal approval shall be is considered
confirmed.
(10) As a condition
of a construction permit issued by the department under this section, to a community
supply , the
department shall require the permit holder to
annually submit a report by April 1 of each
year to the department a report by April 1
of each year that contains the information described in section 32707 of
the natural resources and environmental protection act, 1994 PA 451, MCL
324.32707.
(11) As used in
this section, "assessment tool", "compact",
"intrabasin transfer", "new or increased large quantity
withdrawal", "waters of the state", and "zone C
withdrawal" mean those terms as they are defined
in section 32701 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.32701.
Sec. 17. (1) A person engaged in producing that
produces bottled drinking water shall utilize a water source meeting that meets the
requirements of this section and the requirements
otherwise provided in this act. Bottling or and packaging facilities and their operation shall remain under the supervision of the
department of agriculture as provided for in and rural development in accordance with the food law, of 2000, 2000 PA
92, MCL 289.1101 to 289.8111.
(2) A person producing that produces bottled
drinking water from an out-of-state source shall submit to the department for approval proof to the director that the source of the water and bottling facilities were approved by
the agency having that
has jurisdiction. The director department may withhold approval of the bottled water under
this subsection if the other agency's inspection, surveillance, and
approval procedures and techniques are determined to be inadequate.
(3) A person who that proposes
to engage in producing bottled drinking water from a new or increased large
quantity withdrawal of more than 200,000 gallons of water per day from the
waters of the state or that will result in an intrabasin transfer of more than
100,000 gallons of water per day average over
any 90-day period shall submit an application for a
water withdrawal permit to the department,
in on a form
required and in a
manner prescribed by the department, containing that contains an
evaluation of environmental, hydrological, and hydrogeological conditions that
exist and the predicted effects of the intended withdrawal that provides a
reasonable basis for the a determination under this section to be made.
(4) The department
shall only approve an application under subsection
(3) issue a water withdrawal permit only if
the department determines both of all of the following:
(a) A completed application is submitted under subsection (3).
(b) (a) The
proposed use water
withdrawal or intrabasin transfer will meet the applicable standard
provided in section 32723 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.32723.
(c) (b) The
person will undertake activities, if needed, to address hydrologic impacts
commensurate with the nature and extent of the withdrawal. These activities may
include those related to the stream flow regime, water quality, and aquifer
protection.
(5) Before
proposing activities under subsection (4)(b), (4)(c), the person proposing
to engage in producing bottled drinking water that
submits an application for a water withdrawal permit under subsection (3) shall
consult with local government officials and interested community members.
(6) Before making the determination the
department issues a water withdrawal permit under subsection (4), the
department shall provide public notice and an opportunity for public comment of for not less
than 45 days.
(7) If the person proposing to engage in producing bottled drinking water submits an application for a water withdrawal permit under
subsection (3) does and the person has not have
been issued a construction
permit under section 4, the person shall request
a determination submit an application for a
water withdrawal permit under subsection (3) and request the department issue
the water withdrawal permit under subsection (4) when that the person
applies for a the
construction permit under section 4. If the
person proposing to engage in producing bottled drinking water has previously
received a permit under section 4, the person shall obtain approval under
subsection (4) prior to beginning the operations. A proposed use for which the
department makes a determination that the conditions of subsection (4) will be
met shall be considered to satisfy The
department's issuance of a water withdrawal permit under subsection (4)
satisfies the requirements of section 4.11 of the compact.
(8) A person seeking a departmental determination under
subsection (4) shall submit an application fee of $5,000.00 to the department.
The department shall transmit application fees received under this section to
the state treasurer to be credited to the water use protection fund created in
section 32714.water withdrawal permit issued
under subsection (4) does not expire.
(9) Beginning January 1, 2027, a person shall not produce bottled
drinking water unless the person is licensed by the department in accordance
with this subsection and subsections (10) to (13). A person that applies for a
license shall do so on an application and in a manner prescribed by the
department. The applicant shall include all of the following with an
application for a license:
(a) A water withdrawal permit issued under subsection (4).
(b) A copy of the construction permit issued under section 4.
(c) Any other permits required under federal law.
(d) Any other information required by the department.
(e) An application fee in the amount of $6,000.00. The
department shall transmit application fees received under this subsection to
the state treasurer to be credited to the water use protection fund created in
section 32714 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.32714.
(10) Not later than 30 days after the department receives a completed
license application under subsection (9), the department shall do all of the
following:
(a) Provide public notice of the application for a license.
(b) Accept public comments for not less than 45 days. Public comments
must be submitted to the department on a form and in a manner prescribed by the
department.
(c) If requested by a local unit of government or federally recognized
tribe, meet and consult with the local unit of government or federally
recognized tribe not later than 15 days after a request is made. A request
under this subdivision must be submitted to the department on a form and in a
manner prescribed by the department.
(d) Hold at least 1 public hearing on the license application. The
department shall provide notice as required under the open meetings act, 1976
PA 267, MCL 15.261 to 15.275, of the time and place of the public hearing.
(11) The department shall approve or deny an application for a license not
later than 90 days after the requirements under subsection (10) are completed.
The department shall issue a license only if the department determines all of
the following requirements are met:
(a) The application is complete. If the application is incomplete, the
department shall notify the applicant in writing not later than 30 days after
the application is received, and state the deficiency and request additional
information.
(b) The applicant is in compliance with the terms and conditions of a
permit issued under subsection (4), and any permits required under federal law.
(c) There is sufficient data and information to evaluate the
environmental impacts of the proposed water withdrawal on the water source,
watershed, and water distribution system.
(d) A license issued under this section will not interfere with or
impair public trust resources and uses.
(12) If the department denies an application for license, the department
shall notify the applicant of the denial within 90 days and state the reasons
for the denial. If the department denies an application for a license, the
applicant may appeal the denial by submitting a written request for a hearing
to the department. The applicant must submit the request to the department not
more than 15 days after the date of the denial. The department shall conduct a
hearing requested under this section in accordance with the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(13) A license issued under this section is valid for 5 years from the
date of issuance and is nontransferable.
(14) A license is not required under this section for any of the
following:
(a) The production of a product that contains or incorporates water
obtained from a private well or waterworks system.
(b) The withdrawal, treatment, distribution, or delivery of water or the
provision of services offered by a public or private water utility, public
water supply, or waterworks system.
(c) The sale of water obtained from a private well or waterworks system
in a glass bottle or other container incidental to a wholesale or retail
business.
(d) The use of water for agriculture, manufacturing, generation of
electricity, or industrial purposes.
(15) (9) This
section shall not be construed as affecting,
intending to affect, or in any way altering or interfering does not affect, alter, or interfere with common law
water rights or the applicability of any other laws providing law that
provides for the protection of natural resources or the environment.
(16) (10) A
person who proposes to engage in producing that produces bottled drinking water and who submitted an application for a permit under
section 4 prior to the effective date of the
amendatory act that added this subsection before
July 9, 2008 is subject to the provisions of this section that existed
on February 28, 2006.
(17) (11) As
used in this section, "compact", "intrabasin transfer",
"new or increased large quantity withdrawal", and "waters of the
state" mean those terms as they are defined
in section 32701 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.32701.
Sec. 17a. A
person that is licensed under section 17 shall pay a royalty equal to 25 cents
per gallon of water that is bottled. Quarterly, a person that is licensed under
section 17 shall remit to the department the royalties and a report that
documents the total volume of water withdrawn per month and the total volume of
water that is used for bottled drinking water per month. A royalty collected by
the department under this section must be deposited in the Michigan water trust
fund created in section 1205 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.1205.
Enacting section 1.
This amendatory act does not take effect unless Senate Bill No. ____ (request
no. S01434'25) or House Bill No. ____ (request no. H01434'25) of the 103rd
Legislature is enacted into law.