Foxconn Water Diversion Approval to be Tested in Administrative Hearing; Judicial Review to Follow?

In recent years, it has become relatively common knowledge that the Great Lakes Compact generally bans diversions of Great Lakes water outside the Great Lakes basin but offers limited exceptions. A community that straddles the basin line, or that lies within a county that straddles the basin line, may Great Lakes from spaceapply for a diversion subject to certain stringent technical conditions. I have previously written in this space that the Compact has been successful at least insofar as the party states were able to agree on and subsequently enforce a common decision-making process to consider such requests. In October 2018, Compact supporters will celebrate its 10-year anniversary.

But the Compact’s first decade has not passed without controversy, much of it centered on the diversion provisions generally and on southeastern Wisconsin in particular. In fact, during a recent conference keynote address here at the Law School’s Lubar Center, Compact expert Peter Annin noted that our area has more “diversion hotspots” than the other Compact party states combined. Consider that in 2009, the City of New Berlin (a straddling community) became the first community to successfully apply for a diversion, and in 2016, the City of Waukesha became the first community within a straddling county to successfully apply for a diversion.

Just last week, the region made Compact history for yet another reason. For the first time, opponents to an approved diversion have filed a legal action to challenge the approval in a state administrative hearing, potentially as a precursor to an appeal to Wisconsin circuit court. The proceedings to follow will provide important and novel insights on how to interpret the Compact.

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Will the Foxconn project “transform” Wisconsin’s water resources?

Governor Scott Walker and Wisconsin Economic Development Corporation Secretary Mark Hogan have often said that the Foxconn project will have a “transformational” effect on Wisconsin. During Hogan’s recent appearance at the Law School’s Lubar Center for an On the Issues with Mike Gousha program, an audience member asked Hogan whether the project might be “transformational” in a negative way because of the potential impacts on water and the environment. Those misgivings are shared by many in the community, judging by the responses to a recent Marquette Law School Poll item reporting that 62% of Wisconsinites are either “very” or “somewhat” concerned that the plant “will have substantial negative impacts on water and the environment.”

Foxconn executives and Governor Walker sign agreement at Milwaukee Art MuseumNevertheless, as Hogan correctly pointed out in responding to the question, manufacturing has always been an important part of Wisconsin’s economy and culture. According to some recent estimates, Wisconsin companies produced over $56 billion of goods in 2016, accounting for over 18% of the state’s GDP and 86% of its exports. These firms have long had to comply with environmental regulations. Hogan maintained that, with a few exceptions spelled out in 2017 Wisconsin Act 58, Foxconn would be treated no differently than our existing industries, and would have to fully comply with all federal and state laws related to environmental pollution. In this post, I review the relevant parts of Act 58 and explore Foxconn’s potential impacts on water quantity and water quality.

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Lake Michigan and the Chicago Megacity in the 21st Century

I have previously written in this space about the difficult water policy issues facing “megacities,” generally defined as cities with a population of over ten millA photo of the cover of Marquette Lawyerion people. Meanwhile, the Law School, working in partnership with the Milwaukee Journal Sentinel, has taken an increasing role and interest in studying various aspects of the “Chicago Megacity,” the region stretching from the Milwaukee area, across metropolitan Chicago, and into northwest Indiana. For example, see hereherehere, and here for discussion of a variety of issues such as economic development, transportation, and education.

We are excited to announce that on April 17, the Law School and the Journal Sentinel will continue those efforts, hosting a conference titled “Lake Michigan and the Chicago Megacity in the 21st Century.” The event is free and open to the public, but advanced registration is required; find out more and register at this link. More details about the conference follow.

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