The Michigan Legislature convened on May 21, 2025, to discuss significant changes to groundwater discharge permitting fees, specifically focusing on House Bills 4192 and 4193. The meeting highlighted concerns regarding the financial impact of recent fee increases on small manufactured housing communities, RV parks, and campgrounds.

The discussion began with Representative Van Wertum outlining the implications of the increased groundwater discharge permit fees, which had doubled to $7,500 for many smaller facilities. This change, enacted in October 2023, categorized these smaller entities alongside larger corporations and municipalities, leading to disproportionate financial burdens. The proposed bills aim to redefine the classification of these facilities, allowing those with fewer than 1,000 sites to pay a reduced fee of $1,800, similar to smaller municipalities.

Representatives expressed concerns about the fairness of the current fee structure, noting that 38 facilities out of approximately 900 applications contribute significantly to the state's groundwater discharge revenue. The representatives argued that the increased fees threaten the viability of small businesses in these sectors, as fixed costs become unmanageable.

Questions arose regarding who ultimately bears the cost of these fees. It was suggested that the financial burden likely falls on the owners of the facilities, who may pass these costs onto residents. The representatives sought clarity on the historical fee structure and the rationale behind the current classifications, indicating a need for further stakeholder input.

The Department of Environment, Great Lakes and Energy (EGLE) provided testimony in opposition to the bills, emphasizing that the increased fees are essential for funding the program that ensures wastewater is treated properly to protect public health and the environment. They highlighted that reducing fees would result in a loss of revenue, potentially leading to staff reductions and slower permit processing times.

The meeting concluded with a call for further stakeholder engagement to address the concerns raised and to ensure that the fee structure is equitable for all parties involved. The discussions underscored the ongoing tension between regulatory needs and the financial realities faced by smaller operators in Michigan's tourism and housing sectors.