HOUSE BILL NO. 6274

December 10, 2024, Introduced by Reps. Hood, McKinney, Rheingans, McFall, Farhat, Hill, Paiz, Wilson, Xiong, Wegela, Byrnes, Morgan, Young and Aiyash and referred to the Committee on Natural Resources, Environment, Tourism and Outdoor Recreation.

"Safe drinking water act,"

by amending section 17 (MCL 325.1017), as amended by 2008 PA 188 and by adding section 17a.

the people of the state of michigan enact:

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 Through December 31, 2025, 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 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 for a permit under subsection (3) only if the department determines both of the following:

(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.

(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), the person proposing to engage in producing bottled drinking water that submits an application for a permit under subsection (3) shall consult with local government officials and interested community members.

(6) Before making the determination under subsection (4), the department shall provide public notice and an opportunity for public comment of not less than 45 days.

(7) If the person proposing to engage in producing bottled drinking water that submits an application for a permit under subsection (3) does not have a permit under section 4, the person shall request a determination under subsection (4) when that person applies for a permit under section 4. If the person proposing to engage in producing bottled drinking water that submits an application for a permit under subsection (3) has previously received a permit under section 4, the person shall obtain approval under subsection (4) prior to before beginning the operations. A proposed use for which the department makes a determination that the conditions of subsection (4) will be met shall be is considered to satisfy the requirements of section 4.11 of the compact. This subsection applies through December 31, 2025.

(8) A Through December 31, 2025, a person seeking a that wants 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 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.

(9) Beginning January 1, 2026, 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 applying 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) If the applicant is not a public water supply, a permit to withdraw water issued in accordance with the requirements of this subdivision. If the person is withdrawing 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, the person shall submit a permit application to the department on a form and in a manner prescribed by the department. The permit application must include, but is not limited to, 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 determination under this subdivision to be made. Before the department approves a permit to withdraw water under this subdivision, the department shall provide public notice and an opportunity for public comment of not less than 45 days. The department shall approve an application for a permit to withdraw water under this subdivision only if the department determines both of the following:

(i) The proposed water withdrawal or intrabasin transfer will meet the applicable standards provided in section 32723 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.32723.

(ii) 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. Before undertaking activities under this subparagraph, the applicant shall consult with local government officials and interested community members.

(b) If the applicant is a public water supply, identification of the waterworks system approved by the department under section 4.

(d) Any other information required by the department.

(e) An application fee in the amount of $6,000.00.

(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 within 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 within 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 (9)(a), if applicable, 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 3 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. 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.____ or House Bill No. 6273 (request no. 06380'24) of the 102nd Legislature is enacted into law.