SB-0857, As Passed Senate, February 9, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 857

     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 1998 PA 56 and section 17 as amended by 1993 PA

165.

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 waterworks system owned

or operated by the supplier, unless the department determines that

its existing records are adequate. 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 as

determined necessary by the department.

     (2) Upon receipt of the plans and specifications for a

proposed waterworks system, the department shall evaluate the

adequacy of the proposed system to protect the public health by

supplying water meeting the state drinking water standards and, if

applicable, shall evaluate the impact of the proposed system as

provided in subsections (3) and (4). 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

requirements of this act and the rules promulgated under this act,

on the date of commencement of operations. If upon evaluation the

department determines the plans and specifications to be inadequate

or the capacity assessment shows the system to be inadequate, the

department may return the plans and specifications to the applicant

and require additions or modifications as may be appropriate. The

department may reject plans and specifications for a waterworks

system  which it determines  that will not satisfactorily provide

for the protection of the public health or, if applicable, will not

meet the standards provided in subsections (3) and (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 may evaluate the impact of a proposed

waterworks system for a community supply owned by a political

subdivision 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 a source of water

other than the Great Lakes and their connecting waterways.

     (b) Provide an increased total designed withdrawal capacity of

more than 2,000,000 gallons of water per day from a source of water

other than the Great Lakes and their connecting waterways beyond

the system's total designed withdrawal capacity.

     (c) Provide new total designed withdrawal capacity of more

than 5,000,000 gallons of water per day from the Great Lakes and

their connecting waterways.

     (d) Provide an increased total designed withdrawal capacity of

more than 5,000,000 gallons of water per day from the Great Lakes

and their connecting waterways beyond the system's total designed

withdrawal capacity.

     (4) The department shall reject the plans and specifications

for a proposed waterworks system evaluated under subsection (3) if

it determines that the proposed system will not meet the applicable

standard provided in section 32723(5) or (6) of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.32723, unless 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.

(5)  (3) Before commencing the construction of a waterworks

system or an alteration, addition, or improvement to a system, a

supplier of water shall submit the plans and specifications for the

improvements to the department and secure from the department a

permit for construction  of the same as provided by rule. Plans

and specifications submitted to the department shall 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  thereto  to a waterworks system until a

valid permit for the construction has been secured from the

department. A contractor, builder, or supplier of water who permits

or allows construction to proceed without a valid 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 permit issued by the department is in effect.

(6)  (4) The department may deny a 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.

     Sec. 17. (1) A person engaged in producing bottled drinking

water shall utilize a water source meeting the requirements of this

section and the requirements otherwise provided in this act.

Bottling or packaging facilities and their operation shall remain

under the supervision of the Michigan department of agriculture as

provided for in the  Michigan food law of 1968, Act No. 39 of the

Public Acts of 1968, as amended, being sections 289.701 to 289.727

of the Michigan Compiled Laws  food law of 2000, 2000 PA 92, MCL

289.1101 to 289.8111, and regulation no. 549,  being sections

R285.549.1 through R285.549.29 of the Michigan administrative code,

and other pertinent rules and laws.

     (2) A person producing bottled drinking water from an out-of-

state source shall submit proof to the director that the source and

bottling facilities were approved by the agency having

jurisdiction. The director may withhold approval of the bottled

water if the other agency's inspection, surveillance, and approval

procedures and techniques are determined to be inadequate.

     (3) A person who proposes to engage in producing bottled

drinking water from a new or increased large quantity withdrawal of

more than 250,000 gallons of water per day shall demonstrate to the

satisfaction of the department that all of the following conditions

will be met:

     (a) The proposed use is not likely to have an adverse resource

impact.

     (b) The proposed use is reasonable under common law principles

of water law in Michigan.

     (c) The withdrawal will be conducted in such a manner as to

protect riparian rights as defined by Michigan common law.

     (d) 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.

     (4) Before proposing activities under subsection (3)(d), the

person proposing to engage in producing bottled drinking water

shall consult with local government officials and interested

community members.

     (5) Before making the determination under subsection (3), the

department shall provide public notice and an opportunity for

public comment.

     (6) If the person proposing to engage in producing bottled

drinking water under subsection (3) does not have a permit under

section 4, the person shall request a determination under

subsection (3) when that person applies for a 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 request a determination under subsection (3) prior to

beginning the operations.

     (7) A person seeking a departmental determination under

subsection (3) 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.

     (8) This section shall not be construed as affecting,

intending to affect, or in any way altering or interfering with

common law water rights or the applicability of other laws

providing for the protection of natural resources or the

environment.

     (9) As used in this section, "adverse resource impact" and

"new or increased large quantity 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.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 850.

     (b) Senate Bill No. 851.

     (c) Senate Bill No. 852.

     (d) Senate Bill No. 854.