Committee hears bills to lower groundwater permit fees for small mobile-home communities and campgrounds; EGLE warns of revenue loss

Lede Representative Treya Van Werkom and Representative Ronnie Snyder introduced bills (House Bills 4192 and 4193) that would reclassify small manufactured-housing communities and campgrounds in Michigan so those with fewer than 1,000 sites or residents pay the lower Group 2 groundwater-discharge permit fee instead of the higher Group 1 rate.

Nut graf The bills target roughly 38 facilities that sponsors said were moved into a higher-fee category after an October 2023 budget implementation change. Supporters told the House Committee on Natural Resources and Tourism that the higher fee doubled costs for some small operators; the Department of Environment, Great Lakes and Energy (EGLE) said the fees are the sole funding source for the groundwater discharge program and that cutting revenue would reduce staff and slow permitting.

Body Representative Van Werkom said EGLE’s reclassification in 2023 “doubl[ed] their fees and lump[ed] them into the same class as large corporations, cities and groups with significantly higher volumes of wastewater.” He asked the committee to treat manufactured housing communities with fewer than 1,000 sites like municipalities with fewer than 1,000 residents so those small facilities would be charged the $1,800 annual fee rather than the higher Group 1 rate.

John Lindley, president and CEO of the Michigan Manufactured Housing Association and the Michigan Association of RVs and Campgrounds, told the committee the associations support a “fair and robust regulatory framework” but said the current structure places an unequal financial burden on a handful of small operators. Lindley said the 38 facilities in question account for a disproportionate share of the revenue collected under the new fee structure.

Sydney Hart, legislative liaison for EGLE, testified in opposition and described the department’s view of the program’s funding: “The annual fee structure ... is the sole funding source for this program,” she said. Hart told the committee that EGLE estimates House Bill 4192 would reduce department revenue by about $188,000 (mobile-home park impact) and House Bill 4193 would reduce revenue by about $28,000 (campgrounds), a combined loss that the department said corresponds to roughly one to two full-time equivalents. Hart said reduced staff would affect permit review times, inspections and compliance assistance.

Committee members pressed both sides on details. Members asked how many facilities would move between categories (sponsors said 33 manufactured-housing communities and 5 campgrounds, 38 total), how the 2023 fee change had been proposed and approved, and whether the costs had been passed to residents. EGLE officials and sponsors agreed to convene stakeholders to seek a revenue-neutral solution; EGLE said it would pull together ratepayers and other stakeholders to pursue alternatives that keep the department “whole.”

Discussion vs. decision The committee held testimony and questions but took no formal vote on House Bills 4192 or 4193 during the hearing. EGLE formally opposed the bills while sponsors and industry representatives asked the committee to move the bills or to pursue changes to make the fee structure more equitable for small operators.

Ending Committee members urged prompt stakeholder meetings so any statutory change could be evaluated before the next permitting cycle; EGLE said it planned to convene stakeholders within about a month to explore options that would preserve program staffing while addressing the sponsors’ equity concerns.