Water supply: conservation; limits on water withdrawals under part 327 of the natural resources and environmental protection act; amend. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding sec. 32707a.

2025-2026 Regular Session Introduced by Rosemary Bayer and 5 co-sponsors

SB 763 prevents water withdrawal permit holders from charging the public for infrastructure needed to increase withdrawal capacity beyond what was reported.

SENATE CO-SPONSOR(S) NAMED: SEAN MCCANN

#naturalresources:greatlakes #stateagencies(existing):environment #greatlakes #andenergy #watersupply:conservation

Overview

Senate Bill 763 (Michigan, 2025-2026) amends the Natural Resources and Environmental Protection Act (1994 PA 451) by adding a new section, 32707a. The bill addresses water withdrawals and related costs when a holder of a withdrawal permit seeks to increase capacity. It includes a conditional clause that prohibits passing certain infrastructure costs related to increased withdrawal capacity to the public. The bill is contingent on passage of two other bills in the 103rd Legislature.

Main purpose and intent

To limit the ability of water withdrawal permit holders to pass on public costs for new infrastructure required to support an increased withdrawal capacity.

To ensure that if a permit holder seeks to expand withdrawal beyond what was last reported, and such expansion necessitates infrastructure improvements, those costs cannot be billed to the public.

Key provisions

New Section: 32707a

Trigger: A person who holds a permit under section 32723 proposes to increase withdrawal capacity beyond the amount reported in the most recent annual report under section 32707(1).
Condition: If the proposed increase requires necessary infrastructure improvements to accommodate the greater withdrawal capacity.
Provision: The permit holder shall not pass on to the public any costs associated with the required infrastructure improvements.

Enacting clause: The act’s effective date depends on concurrent enactment of two additional specified bills (lists of bill numbers provided as placeholders for the 103rd Legislature).

Who is affected

Primary: Water withdrawal permit holders under section 32723 (i.e., entities authorized to withdraw water under Michigan law).

Stakeholders potentially impacted: The general public (as potential recipients of bills or fees) and entities responsible for implementing or financing expansion-related infrastructure.

Procedural and timeline aspects

Effective date contingent on the enactment of two other Senate/House bills in the 103rd Legislature (as specified in the amendment’s enacting clause). Until those companion bills are enacted, this bill does not take effect.

Introduction and referral timeline:

Introduced December 18, 2025 by Senator Erika Geiss.
Referred to the Committee on Energy and Environment.
Senate co-sponsors added (including Mallory McMorrow in 2026).

Additional notes

The bill aligns with ongoing concerns about public finance and user-payer principles in water resource management by restricting the transfer of certain infrastructure costs to the public.

The exact scope of “infrastructure improvements” and how this interacts with existing cost-recovery mechanisms in Michigan law would be clarified through subsequent rulemaking or related legislation addressing 32707 and 32723 permit specifics.

As a conditional measure dependent on companion bills, legislative progress on those bills will determine the ultimate operative effect of SB 763.