HB-4087,As Passed House, Feb 27, 2003                                       

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 4087                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1994 PA 451, entitled                                             

                                                                                

    "Natural resources and environmental protection act,"                       

                                                                                

    (MCL 324.101 to 324.90106) by adding part 317.                              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1          PART 317 AQUIFER PROTECTION AND CONFLICT RESOLUTION                  

                                                                                

2       Sec. 31701.  As used in this part:                                          

                                                                                

3       (a) "Agricultural well" means a high capacity well that is                  

                                                                                

4   used for an agricultural purpose.                                           

                                                                                

5       (b) "Complaint" means a complaint submitted under section                   

                                                                                

6   31702 alleging a potential groundwater conflict.                            

                                                                                

7       (c) "Construction" means the process of building a building,                

                                                                                

8   highway, utility, or another structure, including all of the                

                                                                                

9   following:                                                                  

                                                                                

10                                                                               (i) Assembling materials.                                                           

                                                                                

11      (ii) Disassembling and removing a structure.                                 

                                                                                


    Sub. HB 4087 (H-4) as amended February 26, 2003                             

1       (iii) Preparing the construction site.                                       

                                                                                

2       (iv) Work related to any of the items described in                           

                                                                                

3   subparagraphs (i) to (iii).                                                   

                                                                                

4       (d) "Dewatering well" means a well or pump that is used for a               

                                                                                

5   limited time period as part of a construction project to remove             

                                                                                

6   Water from a surface or subsurface area and ceases to be used               

                                                                                

7   upon completion of the construction project or shortly after                

                                                                                

8   completion of the construction project.                                     

                                                                                

9       (e) "Director" means the director of the department of                      

                                                                                

10  environmental quality or his or her designee.                               

                                                                                

11      (f) "Groundwater" means the water in the zone of saturation                 

                                                                                

12  that fills all of the pore spaces of the subsurface geologic                

                                                                                

13  material.                                                                   

                                                                                

14      (g) "Groundwater conflict" means a groundwater conflict                     

                                                                                

15  declared by order of the director under section 31703.                      

                                                                                

16      (h) "High capacity well" means [1 or more water wells associated with]an industrial or processing                                                        

                                                                                

17  facility, an irrigation facility, or a public water supply system           

                                                                                

18  that, in the aggregate from all sources and by all methods, [have]          

                                                                                

19  the capability of withdrawing 100,000 or more gallons of                    

                                                                                

20  groundwater in 1 day. [High capacity well does not include a water well associated with a public water supply system that is owned or operated by a local unit of government if the recharge area of the water well is protected by a wellhead protection program approved by the department under the state's wellhead protection program.]                                                            

                                                                                

21      (i) "Industrial or processing facility" means that term as it               

                                                                                

22  is defined in section 32701.                                                

                                                                                

23      (j) "Irrigation facility" means all wells, pumps, intakes,                  

                                                                                

24  gates, tanks, pipes, or other equipment under common ownership or           

                                                                                

25  control and located either on the same site or on separate sites,           

                                                                                

26  which are used to withdraw, convey, or distribute water for the             

                                                                                

27  purposes of irrigating farmland, golf courses, parks,                       


                                                                                

1   recreational areas, or other grounds.                                       

                                                                                

2       (k) "Local health department" means that term as it is                      

                                                                                

3   defined in section 1105 of the public health code, 1978 PA 368,             

                                                                                

4   MCL 333.1105.                                                               

                                                                                

5                                                                                (l) "Owner" means either of the following:                                          

                                                                                

6                                                                                (i) The owner of an interest in property.                                           

                                                                                

7       (ii) A person in possession of property.                                     

                                                                                

8       (m) "Potable water" means water that at the point of use is                 

                                                                                

9   acceptable for human consumption.                                           

                                                                                

10      (n) "Public water supply system" means a water system that                  

                                                                                

11  provides water for human consumption or other purposes to persons           

                                                                                

12  other than the supplier of water.                                           

                                                                                

13      (o) "Small quantity well" means 1 or more water wells of a                  

                                                                                

14  person at the same location that, in the aggregate from all                 

                                                                                

15  sources and by all methods, have the capability of withdrawing              

                                                                                

16  less than 100,000 gallons of groundwater in 1 day.                          

                                                                                

17      (p) "Water well" means an opening in the surface of the                     

                                                                                

18  earth, however constructed, that is used for the purpose of                 

                                                                                

19  withdrawing groundwater.  Water well does not include a                     

                                                                                

20  dewatering well, a well used solely for the purpose of fire                 

                                                                                

21  suppression, or a drain as defined in section 3 of the drain code           

                                                                                

22  of 1956, 1956 PA 40, MCL 280.3.                                             

                                                                                

23      Sec. 31702.  (1) The owner of a small quantity well may                     

                                                                                

24  submit a complaint alleging a potential groundwater conflict if             

                                                                                

25  the small quantity well has failed to furnish the well's normal             

                                                                                

26  supply of water or the well has failed to furnish potable water             

                                                                                

27  and the owner has credible reason to believe the well's problems            


    Sub. HB 4087 as amended February 26, 2003                                   

1   have been caused by a high capacity well.  A complaint under this           

                                                                                

2   subsection shall be submitted by calling the toll-free telephone            

                                                                                

3   number provided in subsection [(4)] or by submitting a complaint in         

                                                                                

4   writing to the director or to the director of the department of             

                                                                                

5   agriculture [if the complaint involves an agricultural well.]               

                                                                                

6                                                                               

                                                                                

7   However, the director or the director of the department of                  

                                                                                

8   agriculture may refuse to accept an unreasonable complaint.                 

                                                                                

9       (2) The director [or the director of the department of agriculture, as appropriate,] shall conduct an on-site investigation                            

                                                                                

10  within 2 working days after receipt of a complaint.  [An investigation by the director of the department of agriculture shall be conducted under the Michigan right to farm act, 1981 PA 93, MCL 286.471 to 286.474.] The director [or the director of the department of agriculture, as appropriate,]                     

                                                                                

11  shall give affected persons an opportunity to contribute to the             

                                                                                

12  investigation of a complaint.  In conducting the investigation,             

                                                                                

13  the director [or the director of the department of agriculture, as appropriate,] shall consider whether the owner of the high                      

                                                                                

14  capacity well is using industry recognized water conservation               

                                                                                

15  management practices.                                                       

                                                                                

16                                                                               [                                                            

                                                                                

17                                                                              

                                                                                

18                                                                              

                                                                                

19                                                                              

                                                                                

20                                                                              

                                                                                

21                                                                              

                                                                                

22                                                                              

                                                                                

23                                                                              

                                                                                

24                                                                              

                                                                                

25                                                                              

                                                                                

26                           ]                                                  

                                                                                

27      [(3)] After conducting an on-site investigation, the director               


    Sub. HB 4087 (H-4) as amended February 26, 2003                             

1   or the director of the department of agriculture, as appropriate,           

                                                                                

2   shall make a diligent effort to resolve the complaint.  In                  

                                                                                

3   attempting to resolve a complaint, the director or the director             

                                                                                

4   of the department of agriculture, as appropriate, may propose a             

                                                                                

5   remedy that he or she believes would equitably resolve the                  

                                                                                

6   complaint.  If, within a reasonable amount of time following an             

                                                                                

7   on-site investigation, the director of the department of                    

                                                                                

8   agriculture is unable to resolve a complaint, director of the               

                                                                                

9   department of agriculture shall refer the complaint, and provide            

                                                                                

10  all relevant information, to the director.                                  

                                                                                

11      [(4)] The director shall provide for the use of a toll-free                 

                                                                                

12  telephone number to receive complaints.  The director shall                 

                                                                                

13  maintain a log of complaints received from calls to this number.            

                                                                                

14      [(5)] The director and the director of the department of                    

                                                                                

15  agriculture shall do both of the following:                                 

                                                                                

16      (a) Publicize the toll-free telephone number for receipt of                 

                                                                                

17  complaints as provided for in subsection [(4)].                             

                                                                                

18      (b) Enter into a memorandum of understanding that describes                 

                                                                                

19  the process that will be followed by each director when a                   

                                                                                

20  complaint involves an agricultural well.                                    

                                                                                

21      [(6)] A complainant who submits more than 3 unverified                      

                                                                                

22  complaints under this section within 1 year may be ordered by the           

                                                                                

23  director to pay for the full costs of investigation of any fourth           

                                                                                

24  or subsequent unverified complaint.  As used in this subsection,            

                                                                                

25  "unverified complaint" means a complaint in response to which the           

                                                                                

26  director determines that there is not reasonable evidence to                

                                                                                

27  declare a groundwater conflict.                                             


    Sub. HB 4087 (H-4) as amended February 26, 2003                             

1       Sec. 31703.  (1) The director shall, by order, declare a                    

                                                                                

2   groundwater conflict if an investigation of a complaint discloses           

                                                                                

3   all of the following, based upon reasonable [scientifically-based] evidence, and within                                                                      

                                                                                

4   a reasonable amount of time the director is unable to resolve the           

                                                                                

5   complaint:                                                                  

                                                                                

6       (a) That the small quantity well has failed to furnish the                  

                                                                                

7   well's normal supply of water or failed to furnish potable                  

                                                                                

8   water.                                                                      

                                                                                

9       (b) That the small quantity well and the well's equipment                   

                                                                                

10  were functioning properly at the time of the failure.  To make              

                                                                                

11  the determination under this subdivision, the director shall                

                                                                                

12  obtain an assessment from a well drilling contractor registered             

                                                                                

13  under part 127 of the public health code, 1978 PA 368, MCL                  

                                                                                

14  333.12701 to 333.12771.                                                     

                                                                                

15      (c) That the failure of the small quantity well was caused by               

                                                                                

16  the lowering of the groundwater level in the area.                          

                                                                                

17      (d) That the lowering of the groundwater level exceeds normal               

                                                                                

18  seasonal water level fluctuations and substantially impairs                 

                                                                                

19  continued use of the groundwater resource in the area.                      

                                                                                

20      (e) That the lowering of the groundwater level was caused by                

                                                                                

21  at least 1 high capacity well.                                              

                                                                                

22      (f) That the owner of the small quantity well did not                       

                                                                                

23  unreasonably reject a remedy proposed by the director or the                

                                                                                

24  director of the department of agriculture under section                     

                                                                                

25  [31702(3)].                                                                 

                                                                                

26      (2) In addition to the authority under subsection (1) to                    

                                                                                

27  declare a groundwater conflict, if the director has clear and               


                                                                                

1   convincing scientifically based evidence that indicates that                

                                                                                

2   continued groundwater withdrawals from a high capacity well will            

                                                                                

3   exceed the recharge capability of the groundwater resource of the           

                                                                                

4   area, the director, by order, may declare a groundwater                     

                                                                                

5   conflict.                                                                   

                                                                                

6       (3) The director may amend or terminate an order declaring a                

                                                                                

7   groundwater conflict at any time.                                           

                                                                                

8       Sec. 31704.  (1) An order declaring a groundwater conflict                  

                                                                                

9   is effective when a copy of the order is served upon the owner of           

                                                                                

10  a high capacity well that is reasonably believed to have caused             

                                                                                

11  the failure of the complainant's small quantity well.                       

                                                                                

12      (2) If a groundwater conflict requires action before service                

                                                                                

13  can be completed under subsection (1), oral notification in                 

                                                                                

14  person by the director is sufficient until service can be                   

                                                                                

15  completed.  Oral notification is effective for not more than 96             

                                                                                

16  hours.                                                                      

                                                                                

17      (3) As soon as possible after an order declaring a                          

                                                                                

18  groundwater conflict has been issued, the director shall provide            

                                                                                

19  copies of the order to the local units of government in which the           

                                                                                

20  high capacity well and the small quantity well are located and to           

                                                                                

21  the local health departments with jurisdiction over those wells.            

                                                                                

22      Sec. 31705.  (1) Upon declaration of a groundwater conflict,                

                                                                                

23  the director shall, by order, require the immediate temporary               

                                                                                

24  provision at the point of use of an adequate supply of potable              

                                                                                

25  water.                                                                      

                                                                                

26      (2) Except as provided in subsections (3), (4), and (5), if                 

                                                                                

27  the director issues an order declaring a groundwater conflict,              


                                                                                

1   the director may, by order, restrict the quantity of groundwater            

                                                                                

2   that may be extracted from a high capacity well under either of             

                                                                                

3   the following conditions:                                                   

                                                                                

4       (a) If the high capacity well is reasonably believed to have                

                                                                                

5   caused the failure of the complainant's small quantity well and             

                                                                                

6   an immediate temporary provision of an adequate supply of potable           

                                                                                

7   water has not been provided to the complainant by the owner of              

                                                                                

8   the high capacity well.                                                     

                                                                                

9       (b) If there is clear and convincing scientifically based                   

                                                                                

10  evidence that continued groundwater withdrawals from the high               

                                                                                

11  capacity well will exceed the recharge capability of the                    

                                                                                

12  groundwater resource of the area.                                           

                                                                                

13      (3) In issuing an order under subsection (2), the director                  

                                                                                

14  shall consider the impact the order will have on the viability of           

                                                                                

15  a business associated with the high capacity well or other use of           

                                                                                

16  the high capacity well.                                                     

                                                                                

17      (4) If an operator of a high capacity well withdraws water by               

                                                                                

18  a means other than pumping, the director may, by order,                     

                                                                                

19  temporarily restrict the quantity of groundwater that may be                

                                                                                

20  extracted only if the conditions of subsection (2)(a) or (b) have           

                                                                                

21  not been met.                                                               

                                                                                

22      (5) The director shall not issue an order that diminishes the               

                                                                                

23  normal supply of drinking water or the capability for fire                  

                                                                                

24  suppression of a public water supply system owned or operated by            

                                                                                

25  a local unit of government.                                                 

                                                                                

26      Sec. 31706.  (1) If a groundwater conflict has been                         

                                                                                

27  declared, the owner of a high capacity well shall, subject to an            


                                                                                

1   order of the director, provide timely and reasonable compensation           

                                                                                

2   as provided in section 31707 if there is a failure or substantial           

                                                                                

3   impairment of a small quantity well and the following conditions            

                                                                                

4   exist:                                                                      

                                                                                

5       (a) The failure or substantial impairment was caused by the                 

                                                                                

6   groundwater withdrawals of the high capacity well.                          

                                                                                

7       (b) The small quantity well was constructed prior to                        

                                                                                

8   February 14, 1967 or, if the small quantity well was constructed            

                                                                                

9   on or after February 14, 1967, the well was constructed in                  

                                                                                

10  compliance with part 127 of the public health code, 1978 PA 368,            

                                                                                

11  MCL 333.12701 to 333.12771.                                                 

                                                                                

12      (2) In addition to the timely and reasonable compensation                   

                                                                                

13  required under subsection (1), if a groundwater conflict has been           

                                                                                

14  declared, the owner of a high capacity well shall reimburse the             

                                                                                

15  director an amount equal to the actual and reasonable costs                 

                                                                                

16  incurred by the director in investigating and resolving the                 

                                                                                

17  groundwater conflict, not to exceed $75,000.00.  Money received             

                                                                                

18  by the director under this subsection shall be forwarded to the             

                                                                                

19  state treasurer for deposit into the water use protection fund              

                                                                                

20  created in section 32714.                                                   

                                                                                

21      Sec. 31707.  (1) Timely and reasonable compensation under                   

                                                                                

22  section 31706 consists of and is limited to either or both of the           

                                                                                

23  following:                                                                  

                                                                                

24      (a) The reimbursement of expenses reasonably incurred by the                

                                                                                

25  complainant beginning 30 days prior to the date on which a                  

                                                                                

26  complaint is made under section 31702 in doing the following:               

                                                                                

27                                                                               (i) Paying for the cost of obtaining an immediate temporary                         


    Sub. HB 4087 (H-4) as amended February 26, 2003                             

1   provision at the prior point of use of an adequate supply of                

                                                                                

2   potable water.                                                              

                                                                                

3       (ii) Obtaining 1 of the following:                                           

                                                                                

4       (A) The restoration of the affected small quantity well to                  

                                                                                

5   the well's normal supply of water.                                          

                                                                                

6       (B) The permanent provision at the point of use of an                       

                                                                                

7   alternative potable supply of equal quantity.                               

                                                                                

8       (b) If an adequate remedy is not achievable under subdivision               

                                                                                

9   (a), the restriction or scheduling of the groundwater withdrawals           

                                                                                

10  of the high capacity well so that the affected small quantity               

                                                                                

11  well continues to produce either of the following:                          

                                                                                

12                                                                               (i) The well's normal supply of water.                                              

                                                                                

13      (ii) The normal supply of potable water if the well normally                 

                                                                                

14  furnishes potable water.                                                    

                                                                                

15      (2) The refusal of an owner of an affected small quantity                   

                                                                                

16  well to accept timely and reasonable compensation described in              

                                                                                

17  subsection (1) is sufficient grounds for the director to                    

                                                                                

18  terminate an order imposed on a responsible high capacity well.             

                                                                                

19      Sec. 31708.  The owner of a high capacity well subject to an                

                                                                                

20  order under this part may appeal that order directly to circuit             

                                                                                

21  court pursuant to the revised judicature act of 1961, 1961 PA               

                                                                                

22  236, MCL 600.101 to 600.9948.                                               

                                                                                

23      Sec. 31709.  The director may promulgate rules to implement                 

                                                                                

24   this part.

    [Sec. 31710. This part does not apply to a potential groundwater conflict involving a high capacity well owned or operated by a local unit of government if the local unit of government agrees to make the aggrieved property owner whole by connecting the owner's property to the local unit of government's public water supply system or by drilling the owner a new well, with the costs paid by the local unit of government.]                                                            

                                                                                

25      [Sec. 31711.]  (1) A person who violates an order issued under              

                                                                                

26  this part is responsible for a civil fine of not more than                  

                                                                                

27  $1,000.00 for each day of violation, but not exceeding a total of           


                                                                                

1   $50,000.00.                                                                 

                                                                                

2       (2) A default in the payment of a civil fine or costs ordered               

                                                                                

3   under this section or an installment of the fine or costs may be            

                                                                                

4   remedied by any means authorized under the revised judicature act           

                                                                                

5   of 1961, 1961 PA 236, MCL 600.101 to 600.9948.                              

                                                                                

6       (3) All civil fines recovered under this section shall be                   

                                                                                

7   forwarded to the state treasurer for deposit into the                       

                                                                                

8   general fund.                                                               

                                                                                

9       (4) The director may bring an action in a court of competent                

                                                                                

10  jurisdiction to enforce an order under this part, including                 

                                                                                

11  injunctive or other equitable relief.                                       

                                                                                

12      Enacting section 1.  This amendatory act does not take                      

                                                                                

13  effect unless House Bill No. 4097 of the 92nd Legislature is                

                                                                                

14  enacted into law.