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SB 1046

Water supply: conservation; permit for water used for consumptive use purposes; provide for. Amends secs. 32705, 32708a, 32713 & 32723 of 1994 PA 451 (MCL 324.32705 et seq.) & adds sec. 32723a.

2025-2026 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

The bill creates a new framework requiring registration and permits for large water withdrawals, adds sector-based conservation, and mandates reporting, hearings, and penalties to

SENATE CO-SPONSOR(S) NAMED: SEAN MCCANN
#naturalresources:greatlakes #watersupply:conservation
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Bill Summary · SB 1046

Overview

Senate Bill 1046 (2025-2026, Michigan) amends the Natural Resources and Environmental Protection Act to update and expand processes for large-quantity water withdrawals, introduce a new consumptive-use permitting regime for large water users, strengthen conservation measures, and enhance reporting and enforcement related to water use. It includes new registration requirements, a permitting framework for certain large withdrawals, sector-based conservation measures, and public notification/public participation provisions.

Purpose and intent

  • Improve management of large-quantity water withdrawals to protect water resources, ensure sustainability, and reduce environmental impacts.
  • Create a structured pathway for withdrawals that meet or exceed defined thresholds, including zone-based considerations.
  • Establish incentives and obligations for water conservation among large users and sectors.
  • Enhance transparency through public notice, data reporting, and potential enforcement actions.

Key provisions and changes

  • Registration of large withdrawals (Sec. 32705):

    • Property owners planning new or increased large withdrawals must register after assessment and before starting withdrawal (online option available).
    • Exempts certain existing registrants, community supplies under Safe Drinking Water Act, certain permit-holders, and some residential wells (with limits).
    • Aggregates total withdrawal across related activities and requires registration to be valid for 18 months from registration if capacity is not developed.
    • Allows farm registrations to be submitted to the Department of Agriculture and Rural Development (MDARD) instead of the department.

  • Water conservation measures (Sec. 32708a):

    • By March 31, 2009, the department must publish generic conservation measures for large withdrawals.
    • Sectors may develop sector-specific measures; the department reviews and may adopt them if appropriate, posting them publicly. Agriculture measures are developed by the Department of Agriculture and Rural Development (and updated annually in coordination with the Michigan Right to Farm Act).
    • A compliance framework clarifies that conservation measures do not override existing prohibitions.
    • Annual reporting on sector conservation status begins (with specific timing).

  • Data center and permit-holder reporting (Sec. 32708a):

    • Requires reporting on total water use by data centers in public water supply service areas (starting 2027-07-01; annual).
    • Requires reporting of wastewater effluent and priority pollutants for permit holders under 32723a (starting 2028-09-01; annual).

  • Civil penalties and enforcement (Sec. 32713):

    • AG can sue for violations, seeking injunctions and civil fines.
    • Fine levels differ by violation type; higher penalties for knowingly violating certain sections, with escalating penalties for repeated offenses under 32723a.

  • Water withdrawal permits (Sec. 32723):

    • Requires a permit for substantial new or increased withdrawals (thresholds vary by system and zone C determinations) and intrabasin transfers.
    • Application content includes hydrological/hydrogeological data, potential preventative measures, and a $2,000 application fee deposited into the Water Use Protection Fund.
    • Administrative completeness, public notification, and a minimum 45- to 120-day decision timeline (depending on stage) apply.
    • Permit conditions cover return of water with consumptive use considerations, cumulative impact analyses, compliance with laws and treaties, and reasonableness under Michigan water law.
    • Some withdrawals are exempt, including community supplies with Safe Drinking Water Act permits, seasonal withdrawals under specified limits, bottled water production, and certain 32723a permit holders.

  • Consumptive-use permitting (Sec. 32723a):

    • Beginning July 1, 2027, if a user consumes 550,000 gallons/day or more (annual average), they must comply with:
    • Not withdraw more than available water independently; partner with a community supply to meet total daily use; apply for a permit under this section.
    • Permit application requires usage data, public notice proof, and a $2,000 fee.
    • Public hearings required (minimum three, including varied times and days, with outreach in multiple languages) prior to permit submission; hearings must be accessible in the host municipality.
    • Permit is valid for 10 years and nontransferable.
    • Annual reporting by community supplies partnering with permit holders starting 2028-07-01 (and ongoing) if use exceeds 2,000,000 gallons/day.
    • Public engagement and reporting provisions emphasize transparency and community involvement.
    • Environmental-review and permitting standards apply, with a 120-day review window after the public comment period.

Affected entities

  • Property owners planning new or increased withdrawals.
  • Water utility systems, data centers, and other large water users.
  • Community water supplies and their governing bodies.
  • The Department of Environment, Great Lakes, and Energy (its role in registration, conservation, reporting, enforcement).
  • The Department of Agriculture and Rural Development (MDARD) for agricultural-related registrations and measures; MDARD also interacts with conservation updates.
  • Public and private stakeholders via enhanced public notices and hearings.
  • Data centers and wastewater permit holders (through reporting requirements).

Procedural and timeline notes

  • Registrations must be completed before withdrawal, with 18-month development window post-registration.
  • Sector conservation measures to be established and posted; annual reporting timelines begin in 2010 (for conservation status) and 2027–2028 for data reporting.
  • 32723a permits impose strict public participation requirements (three hearings) before permit submission; 10-year permit terms; annual reporting beginning 2028 for large consumptive-use cases.
  • Fees collected under 32723 and 32723a go to the Water Use Protection Fund.

Note: The bill text includes various dates that may reflect drafting benchmarks; final compliance dates may adjust upon passage and any subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

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