Natural resources: trust fund; Michigan water trust fund; provide for. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding pt. 12. TIE BAR WITH: SB 0951'26
Senate Bill 950 would amend Michigan’s Natural Resources and Environmental Protection Act to create the Michigan Water Trust Fund and a related grant program focused on water infrastructure and access. The bill states that the waters of the state are a public trust and emphasizes the legislature’s duty to protect water quantity and quality for public uses such as drinking water, health, fishing, recreation, and lawful domestic, agricultural, commercial, industrial, and public utility uses.
The bill establishes the fund in the state treasury and allows it to receive royalties collected under the Safe Drinking Water Act, along with money or other assets from other sources. The state treasurer would invest the fund, earnings would remain in the fund, and annual reporting would be required beginning in 2027. The bill also sets a spending cap until the fund reaches a principal target of $800 million, after which the principal must stay between $750 million and $1.5 billion.
The bill would add a new part to the Natural Resources and Environmental Protection Act and create a dedicated, nonlapsing trust fund for water-related purposes. It would also direct the Department of Environment, Great Lakes, and Energy to administer grants for bottled water during water emergencies, lead service line replacement, private well testing, on-site wastewater regulation, water affordability assistance for low-income households, and local water infrastructure and flood resilience projects. The bill would also create a Michigan Water Trust Fund Board to review applications and recommend projects, with the board subject to open meetings and FOIA requirements.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text, the measure appears to be framed as a public health and infrastructure initiative aimed at improving safe and affordable water access. The inclusion of reporting requirements, spending limits, and a board structure suggests an effort to present the program as fiscally controlled and administratively accountable.
The main potential points of contention are likely to be the size and structure of the trust fund, the use of royalties and other revenues for a dedicated fund rather than the general fund, and the scope of grant eligibility. Possible concerns could include whether the state should commit to a large principal target, how the funds would be prioritized among emergency bottled water, lead replacement, affordability, and infrastructure projects, and whether the board and department have sufficient oversight. The bill is also tie-barred to SB 951, meaning it would not take effect unless that related bill is enacted, which may indicate a package approach or a dependency that could be controversial.