The Michigan Legislature's Natural Resources and Tourism meeting on May 21, 2025, focused on significant concerns regarding the state's water management regulations and fee structures. Stakeholders expressed frustration over recent changes that have led to substantial increases in fees for water discharge permits, raising questions about the fairness and sustainability of these costs for small operators.

During the meeting, representatives discussed the implications of House Bill 5007, which altered the engagement process between the Department of Environment, Great Lakes, and Energy (EGLE) and stakeholders. Prior to the law change in 2023, there was little to no outreach for stakeholder input, a situation that has persisted since 2015. This lack of engagement has left many operators feeling disconnected from the regulatory process.

One operator highlighted the challenges faced in renewing their discharge permit, which was due in July but has yet to be finalized. They noted that the proposed changes to their permit included new testing requirements without clear justification. This operator also pointed out that their facility, which processes 4 million gallons of water annually, is actually improving water quality compared to upstream sources, raising concerns about the disproportionate fees they are now facing.

The discussion revealed that fees for some operators have skyrocketed, with one operator's costs increasing from $3,600 to $7,500. Comparisons were made to neighboring states like Ohio and Wisconsin, where fees remain significantly lower, suggesting that Michigan's regulatory environment could drive businesses to relocate.

The meeting underscored the need for a reevaluation of the fee structure and greater stakeholder involvement in the regulatory process. As representatives voiced their concerns, it became clear that the current system may not adequately support small businesses while ensuring environmental compliance. The next steps involve gathering more data on fee comparisons and exploring potential reforms to create a more equitable regulatory framework for water management in Michigan.