Tag: Foxconn

FLOW Challenges Wisconsin’s Approval of Lake Michigan Water Diversion

FOR IMMEDIATE RELEASE TO MEDIA: May 4, 2018

 

Dave Dempsey, Senior Advisor                                                               Phone: 231-944-1568
FLOW (For Love of Water)                                                       Email: dave@flowforwater.org

Jim Olson, Founder & President                                                            Phone: 231-499-8831
FLOW (For Love of Water)                                                             Email: olson@envlaw.com

 

FLOW Challenges Wisconsin’s Approval of Lake Michigan Water Diversion

 

A Lake Michigan water diversion approved by the State of Wisconsin is inconsistent with the Great Lakes Compact and threatens an open season on Great Lakes water, FLOW said today.

The Traverse City, Michigan-based science and law center asked Great Lakes governors and a Regional Body established by the Compact to review Wisconsin’s approval of a 7 million gallon per day diversion request by Racine, Wisconsin, a city entirely insides the basin, primarily for the Foxconn Corporation in Mt. Pleasant, Wisconsin. Wisconsin Department of Natural Resources approval of the diversion is based on a faulty interpretation of the Compact and sets a dangerous precedent, FLOW said.

“We can’t go into this century’s water crisis with a loosely conceived decision that turns the ‘straddling community’ exception to the diversion ban on end,” said Jim Olson, founder and president of FLOW. “The Compact envisioned sending water to cities that straddle the basin with existing water infrastructure that already serves residents on both sides of the divide. Wisconsin has shoe-horned Racine’s request to extend its pipes outside the basin to serve a private customer, not a public water supply. Scores of other communities and private interests could start doing the same, and billions of gallons will ultimately end up outside the basin.”

“Wisconsin’s approval of this diversion doesn’t just bend the Compact, it threatens to break it,” said Dave Dempsey, Senior Advisor to FLOW. “The Racine-to-Foxconn diversion must receive the highest degree of scrutiny, and if it is discovered that the application of this exception violates or is not consistent with the Compact, the Council, Regional Body, and parties or citizens must correct the error before it is too late.”

The approved diversion allows the City of Racine to extend its existing water supply system to an area of Mt. Pleasant not served by a public water supply and outside the Great Lakes watershed.

FLOW’s challenge has two parts:

  • The Foxconn diversion stretches the Compact’s exception to a ban on diversions for so-called straddling communities that is intended “solely for public water supply purposes,” primarily residential customers. The exception was intended to assist communities with public water supply systems that already extend across the divide and serve a straddling public water supply, with emphasis on residential users. The Racine-to-Foxconn diversion is simply a diversion of an in-basin city’s in-basin public water system to an area outside the basin for an industrial purpose, as acknowledged publicly by state and local officials. The City of Racine circumvented the requirement by using its gross water utility system-wide data to show that its in-basin system serves 30,425 residential customers, 848 multi-family residential customers, about 3,000 business, commercial, and 302 industrial users. But the water diverted or transferred here is the 7 million gallons covered by the Racine application. If the analysis is limited to that required by law, the primary purpose of the diversion is to serve customers outside the basin who are commercial and industrial—the Foxconn plant project, and not residential users.
  • The Foxconn diversion violates the exception for “straddling communities” because the exception is solely for public water supply “within” or “in” “the straddling community.” A customer area in an incorporated town like Mt. Pleasant is not a public water supply of Mt. Pleasant, and therefore Mt. Pleasant without its own public water supply system does not qualify as a “straddling community.” To interpret the exception otherwise, is to allow a city inside the basin to divert water to a new customer in an area outside the basin by merely assuming the identity of an existing community whose corporate limits straddle the basin divide. This is not what the exception was intended to allow; it does not serve the public water supply of Mt. Pleasant; and it serves the customer and newly diverted water on the part of Applicant City of Racine.

The Council and Regional Body have broad authority to bring actions, exercise rights as aggrieved parties, or exercise powers of review for consistency, compliance, uniformity based on a joint commitment to protect the integrity of the Great Lakes; this means upholding the diversion ban and interpreting and applying the exceptions to the ban as written. The Racine in-basin community proposed diversion for primarily industrial use by an industrial customer in Mt. Pleasant, but outside the basin, does not qualify for the straddling community exception.

The Council and Regional Body and affected or aggrieved parties should demand an investigation, review, and determination of whether or not the Racine proposal and final determination by the Wisconsin DNR fall within, meet and/or comply with the “straddling community” exception standard, FLOW said.

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The Wisconsin Water Diversion Giveaway

The 10-year-old Great Lakes Compact is not just an agreement among eight states. It is also a compact between the citizens and public officials of those states. A decision yesterday in Wisconsin puts both compacts at risk.

Wisconsin has now approved a diversion of up to 2.7 million gallons a day of Lake Michigan water to be used by Foxconn for industrial purposes.

But the premise of the Compact is that governments will do everything in their power to prevent diversions of Great Lakes water, reflecting the will of the people of this region. After all, the compact arose from public outrage over a 1998 proposal to ship Lake Superior water to Asia. It wasn’t government that initiated the compact, it was a clamor from the public.

In two ways, the fine print of the Compact departed from the public’s opposition to water diversions. First, the Compact exempts from its ban on diversions shipments of water for sale as long as the shipments are in small containers, such as bottles. This condones the privatization of a public trust resource and could yield control of the Great Lakes over to commercial interests.

The other, supposedly more limited exemption is one for public health. Communities straddling the Great Lakes watershed boundary, or outside of it but in a straddling county, are allowed to seek diversions to supply public drinking water if there is no alternative. Specifically, the Compact provides that the exempted diversion water “shall be used solely for Public Water Supply Purposes.”

But under Governor Scott Walker, Wisconsin is attempting to use Lake Michigan as yet another giveaway on top of $3 billion in other tax incentives to lure Foxconn and the jobs it would create to his state. The company’s facility, just outside the Great Lakes watershed, will enjoy the bulk of up to 2.7 million gallons a day of water from the lake that it would not return.

The City of Racine’s application is clear that the water it seeks will help “meet forecasted demands for water resulting from expected development in the Village of Mount Pleasant along the Interstate-94 corridor.” The Wisconsin DNR website affirms that the area served includes the area identified as the future site of the Foxconn facility. Clearly, the purpose of the proposal is primarily industrial. Until there is a factual basis that demonstrates the proposal will serve “largely residential customers,” and that the industrial portion of the proposal is merely incidental, this application cannot be approved.

An additional problem is that as currently construed by Wisconsin, the other seven Great Lakes states have no formal role to play in approving or rejecting the Foxconn proposal. That’s because the village in which Foxconn would be located is a “straddling community,” whose fate the Compact leaves to the originating state in most cases.

This proposal turns the Great Lakes into a subsidy for development – just like a tax break – outside the Great Lakes watershed. It could lead to a Great Lakes industrial water reservoir available for all states to create, populated by dozens of industries in existing or even new straddling communities, subject only to a single state’s approval. 

The question then becomes if the Great Lakes states themselves can tap the lakes for politically favored interests, why can’t other states do the same? Clearly, under this interpretation, the Compact is not solely concerned about the health of the lakes or the health of the people close by. It is a cash cow for private interests — and vulnerable to legal attack from outside the watershed.

Dave Dempsey, FLOW Senior Advisor

That’s not what the public thought it was getting. It breaks the compact between the governed and those who govern. Moreover, when the states approved the Compact, Wisconsin included, they adopted a provision that they must follow the standards of the Compact. This means the threshold question of whether Wisconsin is construing the “straddling community” “incidental industry” standard too loosely to serve its own ends is not for Wisconsin to decide alone, but for all the states to the Compact and the citizens of the Great Lakes watershed it protects.

The Great Lakes states must honor their promise, insist on a stringent interpretation of the “straddling community” exception and stop the Foxconn water giveaway.


Wisconsin Water Diversion Proposal Flouts Public Trust

byzantine-empire-public-land.-trusts

FLOW’s organizing principle is the public trust doctrine.  What sounds like an exotic concept is quite simple.  This centuries-old principle of common law holds that there are some resources, like water and submerged lands that by their nature cannot be privately owned.  Rather, these commons – including the Great Lakes — belongs to the public.  And governments, like the State of Michigan, have a responsibility to protect public uses of these resources.  We explicitly address public trust concerns on what we’re calling Public Trust Tuesday.


A proposal by the City of Racine, Wisconsin to divert 7 million gallons a day of Lake Michigan water to support an industrial development risks a dangerous precedent that could undermine the Great Lakes Compact, and is inconsistent with the public trust.

The Wisconsin Department of Natural Resources is accepting comments until tomorrow on the City’s application.  The City, and Wisconsin state officials, have made no secret of the fact that the water is largely going to supply a new business development, Foxconn, outside the Great Lakes watershed.

The Compact, however, is clear that any water exempted from its general ban on diversions “shall be used solely for Public Water Supply Purposes.” State and local government officials have explicitly stated that the water will be used primarily to facilitate a single industrial use. The Compact’s definition of Public Water Supply Purposes is “a group of largely residential customers that may also serve industrial, commercial, and other institutional operators (emphasis added).” This clearly means that any industrial or commercial uses must be incidental, not the primary purpose.

From FLOW’s perspective, an equal or greater concern is that the proposed use is inconsistent with the public trust doctrine.  The waters of the Great Lakes and navigable waters of Wisconsin are subject to the doctrine, which requires any diversion of this kind to promote a primarily public, not private purpose, under U.S. Supreme Court, Wisconsin, and Michigan Supreme Court law. The doctrine also requires the Wisconsin DNR to consider the effects of the diversion or transfer out of the basin on the Great Lakes and all navigable waters and the uses dependent on those waters that are potentially affected by the transfer, use, or return and/or net loss.

Under the rules of the Compact, review by the other seven Great Lakes states for this diversion is not required.  That’s largely because the jurisdiction in which Foxconn will be sited is the Village of Mount Pleasant, a so-called “straddling community” that sits partly inside and partly outside the Great Lakes watershed.  If the Village were entirely outside the watershed, all eight Great Lakes states would formally participate in the decision.

The Wisconsin DNR is obligated to consider comments from the public on this proposal. You can make your thoughts known by email to DNRRacineDiversionComments@wisconsin.gov.