CHAPTER 15. GREAT LAKES_ST. LAWRENCE RIVER BASIN WATER RESOURCES COMPACT

IC 14-25-15
     Chapter 15. Great Lakes_St. Lawrence River Basin Water Resources Compact

IC 14-25-15-1
Agreement for the compact
    
Sec. 1. The following interstate agreement on the use of water resources in the Great Lakes_St. Lawrence River basin is enacted into law and entered into by this state with all other states legally joining the interstate agreement in substantially the following form:

AGREEMENT


    Section 1. The states of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, and Wisconsin, and the Commonwealth of Pennsylvania hereby solemnly covenant and agree with each other, upon enactment of concurrent legislation by the respective state legislatures and consent by the Congress of the United States as follows:

GREAT LAKES_ST. LAWRENCE RIVER BASIN WATER     

RESOURCES COMPACT

ARTICLE 1


SHORT TITLE, DEFINITIONS, PURPOSES AND DURATION


    Section 1.1. Short title. This act shall be known and may be cited as the "Great Lakes_St. Lawrence River Basin Water Resources Compact".
    Section 1.2. Definitions. For the purposes of the compact, and of any supplemental or concurring legislation enacted under the compact, except as may be otherwise required by the context:
    "Adaptive management" means a water resources management system that provides a systematic process for evaluation, monitoring, and learning from the outcomes of operational programs and adjustment of policies, plans, and programs based on experience and the evolution of scientific knowledge concerning water resources and water dependent natural resources.
    "Agreement" means the Great Lakes_St. Lawrence River Basin Sustainable Water Resources Agreement.
    "Applicant" means a person who is required to submit a proposal that is subject to management and regulation under the compact. "Application" has a corresponding meaning.
    "Basin" or "Great Lakes_St. Lawrence River basin" means the watershed of the Great Lakes and the St. Lawrence River upstream from Trois-Rivières, Québec, within the jurisdiction of the parties.
    "Basin ecosystem" or "Great Lakes_St. Lawrence River basin ecosystem" means the interacting components of air, land, water, and living organisms, including humankind, within the basin.
    "Community within a straddling county" means any incorporated city, town, or the equivalent thereof, that is located outside the basin but wholly within a county that lies partly within the basin and that is not a straddling community.
    "Compact" means this compact.
    "Consumptive use" means that portion of the water withdrawn or

withheld from the basin that is lost or otherwise not returned to the basin due to evaporation, incorporation into products, or other processes.
    "Council" means the Great Lakes_St. Lawrence River basin water resources council, created by the compact.
    "Council review" means the collective review by the council members as described in article 4 of the compact.
    "County" means the largest territorial division for local government in a state. The county boundaries shall be defined as those boundaries that exist as of December 13, 2005.
    "Cumulative impacts" means the impact on the basin ecosystem that results from incremental effects of all aspects of a withdrawal, diversion, or consumptive use in addition to other past, present, and reasonably foreseeable future withdrawals, diversions, and consumptive uses regardless of who undertakes the other withdrawals, diversions, and consumptive uses. Cumulative impacts can result from individually minor but collectively significant withdrawals, diversions, and consumptive uses taking place over a period of time.
    "Decision making standard" means the decision making standard established by section 4.11 for proposals subject to management and regulation in section 4.10.
    "Diversion" means a transfer of water from the basin into another watershed, or from the watershed of one (1) of the Great Lakes into that of another by any means of transfer, including but not limited to a pipeline, canal, tunnel, aqueduct, channel, modification of the direction of a water course, a tanker ship, tanker truck, or rail tanker but does not apply to water that is used in the basin or a Great Lake watershed to manufacture or produce a product that is then transferred out of the basin or watershed. "Divert" has a corresponding meaning.
    "Environmentally sound and economically feasible water conservation measures" means those measures, methods, technologies, or practices for efficient water use and for reduction of water loss and waste or for reducing a withdrawal, consumptive use, or diversion that:
        (i) are environmentally sound;
        (ii) reflect best practices applicable to the water use sector;
        (iii) are technically feasible and available;
        (iv) are economically feasible and cost effective based on an analysis that considers direct and avoided economic and environmental costs; and
        (v) consider the particular facilities and processes involved, taking into account the environmental impact, age of equipment and facilities involved, processes employed, energy impacts, and other appropriate factors.
    "Exception" means a transfer of water that is excepted under section 4.9 from the prohibition against diversions in section 4.8.
    "Exception standard" means the standard for exceptions established in section 4.9.4.     "Intra-basin transfer" means the transfer of water from the watershed of one (1) of the Great Lakes into the watershed of another Great Lake.
    "Measures" means any legislation, law, regulation, directive, requirement, guideline, program, policy, administrative practice, or other procedure.
    "New or increased diversion" means a new diversion, an increase in an existing diversion, or the alteration of an existing withdrawal so that it becomes a diversion.
    "New or increased withdrawal or consumptive use" means a new withdrawal or consumptive use or an increase in an existing withdrawal or consumptive use.
    "Originating party" means the party within whose jurisdiction an application or registration is made or required.
    "Party" means a state party to the compact.
    "Person" means a human being or a legal person, including a government or a nongovernmental organization, including any scientific, professional, business, nonprofit, or public interest organization or association that is neither affiliated with, nor under the direction of, a government.
    "Product" means something produced in the basin by human or mechanical effort or through agricultural processes and used in manufacturing, commercial, or other processes or intended for intermediate or end use consumers.
        (i) Water used as part of the packaging of a product shall be considered to be part of the product.
        (ii) Other than water used as part of the packaging of a product, water that is used primarily to transport materials in or out of the basin is not a product or part of a product.
        (iii) Except as provided in item (i), water that is transferred as part of a public or private supply is not a product or part of a product.
        (iv) Water in its natural state such as in lakes, rivers, reservoirs, aquifers, or water basins is not a product.
    "Proposal" means a withdrawal, diversion, or consumptive use of water that is subject to the compact.
    "Province" means Ontario or Québec.
    "Public water supply purposes" means water distributed to the public through a physically connected system of treatment, storage, and distribution facilities serving a group of largely residential customers that may also serve industrial, commercial, and other institutional operators. Water withdrawn directly from the basin and not through such a system shall not be considered to be used for public water supply purposes.
    "Regional body" means the members of the council and the premiers of Ontario and Québec or their designee as established by the agreement.
    "Regional review" means the collective review by the regional body as described in article 4 of the compact.
    "Source watershed" means the watershed from which a

withdrawal originates. If water is withdrawn directly from a Great Lake or from the St. Lawrence River, then the source watershed shall be considered to be the watershed of that Great Lake or the watershed of the St. Lawrence River, respectively. If water is withdrawn from the watershed of a stream that is a direct tributary to a Great Lake or a direct tributary to the St. Lawrence River, then the source watershed shall be considered to be the watershed of that Great Lake or the watershed of the St. Lawrence River, respectively, with a preference to the direct tributary stream watershed from which it was withdrawn.
    "Standard of review and decision" means the exception standard, decision making standard, and reviews as outlined in article 4 of the compact.
    "State" means one (1) of the states of Illinois, Indiana, Michigan, Minnesota, New York, Ohio, or Wisconsin, or the Commonwealth of Pennsylvania.
    "Straddling community" means any incorporated city, town, or the equivalent thereof, wholly within any county that lies partly or completely within the basin, whose corporate boundary existing as of the effective date of the compact, is partly within the basin or partly within two (2) Great Lakes watersheds.
    "Technical review" means a detailed review conducted to determine whether or not a proposal that requires regional review under the compact meets the standard of review and decision following procedures and guidelines as set out in the compact.
    "Water" means ground or surface water contained within the basin.
    "Water dependent natural resources" means the interacting components of land, water, and living organisms affected by the waters of the basin.
    "Waters of the basin" or "basin water" means the Great Lakes and all streams, rivers, lakes, connecting channels, and other bodies of water, including tributary groundwater, within the basin.
    "Withdrawal" means the taking of water from surface water or groundwater. "Withdraw" has a corresponding meaning.
    Section 1.3. Findings and purposes. The legislative bodies of the respective parties hereby find and declare:
        1. Findings:
            a. the waters of the basin are precious public natural resources shared and held in trust by the states;
            b. the waters of the basin are interconnected and part of a single hydrologic system;
            c. the waters of the basin can concurrently serve multiple uses. Such multiple uses include municipal, public, industrial, commercial, agriculture, mining, navigation, energy development and production, recreation, the subsistence, economic and cultural activities of native peoples, water quality maintenance, and the maintenance of fish and wildlife habitat and a balanced ecosystem; and, other purposes are encouraged, recognizing that such uses

are interdependent and must be balanced;
            d. future diversions and consumptive uses of basin water resources have the potential to significantly impact the environment, economy, and welfare of the Great Lakes_St. Lawrence River region;
            e. continued sustainable, accessible, and adequate water supplies for the people and economy of the basin are of vital importance; and
            f. the parties have a shared duty to protect, conserve, restore, improve, and manage the renewable but finite waters of the basin for the use, benefit, and enjoyment of all their citizens, including generations yet to come. The most effective means of protecting, conserving, restoring, improving, and managing the basin waters is through the joint pursuit of unified and cooperative principles, policies, and programs mutually agreed upon, enacted, and adhered to by all parties.
        2. Purposes:
            a. to act together to protect, conserve, restore, improve, and effectively manage the waters and water dependent natural resources of the basin under appropriate arrangements for intergovernmental cooperation and consultation because current lack of full scientific certainty should not be used as a reason for postponing measures to protect the basin ecosystem;
            b. to remove causes of present and future controversies;
            c. to provide for cooperative planning and action by the parties with respect to such water resources;
            d. to facilitate consistent approaches to water management across the basin while retaining state management authority over water management decisions within the basin;
            e. to facilitate the exchange of data, strengthen the scientific information base upon which decisions are made, and engage in consultation on the potential effects of proposed withdrawals and losses on the waters and water dependent natural resources of the basin;
            f. to prevent significant adverse impacts of withdrawals and losses on the basin's ecosystems and watersheds;
            g. to promote interstate and state-provincial comity; and
            h. to promote an adaptive management approach to the conservation and management of basin water resources, which recognizes, considers, and provides adjustments for the uncertainties in, and evolution of, scientific knowledge concerning the basin's waters and water dependent natural resources.
    Section 1.4. Science.
        1. The parties commit to provide leadership for the development of a collaborative strategy with other regional partners to strengthen the scientific basis for sound water management decision making under the compact.
        2. The strategy shall guide the collection and application of

scientific information to support:
            a. an improved understanding of the individual and cumulative impacts of withdrawals from various locations and water sources on the basin ecosystem and to develop a mechanism by which impacts of withdrawals may be assessed;
            b. the periodic assessment of cumulative impacts of withdrawals, diversions, and consumptive uses on the Great Lakes and St. Lawrence River watershed basin;
            c. improved scientific understanding of the waters of the basin;
            d. improved understanding of the role of groundwater in basin water resources management; and
            e. the development, transfer, and application of science and research related to water conservation and water use efficiency.

ARTICLE 2


ORGANIZATION


    Section 2.1. Council created. The Great Lakes_St. Lawrence River Basin water resources council is hereby created as a body politic and corporate, with succession for the duration of the compact, as an agency and instrumentality of the governments of the respective parties.
    Section 2.2. Council membership. The council shall consist of the governors of the parties, ex officio.
    Section 2.3. Alternates. Each member of the council shall appoint at least one (1) alternate who may act in his or her place and stead, with authority to attend all meetings of the council and with power to vote in the absence of the member. Unless otherwise provided by law of the party for which he or she is appointed, each alternate shall serve during the term of the member appointing him or her, subject to removal at the pleasure of the member. In the event of a vacancy in the office of alternate, it shall be filled in the same manner as an original appointment for the unexpired term only.
    Section 2.4. Voting.
        1. Each member is entitled to one (1) vote on all matters that may come before the council.
        2. Unless otherwise stated, the rule of decision shall be by a simple majority.
        3. The council shall annually adopt a budget for each fiscal year, and the amount required to balance the budget shall be apportioned equitably among the parties by unanimous vote of the council. The appropriation of such amounts shall be subject to such review and approval as may be required by the budgetary processes of the respective parties.
        4. The participation of council members from a majority of the parties shall constitute a quorum for the transaction of business at any meeting of the council.
    Section 2.5. Organization and procedure. The council shall provide for its own organization and procedure, and may adopt rules

and regulations governing its meetings and transactions, as well as the procedures and timeline for submission, review, and consideration of proposals that come before the council for its review and action. The council shall organize, annually, by the election of a chair and vice chair from among its members. Each member may appoint an adviser, who may attend all meetings of the council and its committees, but shall not have voting power. The council may employ or appoint professional and administrative personnel, including an executive director, as it may deem advisable, to carry out the purposes of the compact.
    Section 2.6. Use of existing offices and agencies. It is the policy of the parties to preserve and utilize the functions, powers, and duties of existing offices and agencies of government to the extent consistent with the compact. Further, the council shall promote and aid the coordination of the activities and programs of the parties concerned with water resources management in the basin. To this end, but without limitation, the council may:
        1. advise, consult, contract, assist, or otherwise cooperate with any and all such agencies;
        2. employ any other agency or instrumentality of any of the parties for any purpose; and
        3. develop and adopt plans consistent with the water resources plans of the parties.
    Section 2.7. Jurisdiction. The council shall have, exercise, and discharge its functions, powers, and duties within the limits of the basin. Outside the basin, it may act in its discretion, but only to the extent such action may be necessary or convenient to effectuate or implement its powers or responsibilities within the basin and subject to the consent of the jurisdiction wherein it proposes to act.
    Section 2.8. Status, immunities, and privileges. The council, its members, and personnel in their official capacity and when engaged directly in the affairs of the council, its property, and its assets, wherever located and by whomsoever held, shall enjoy the same immunity from suit and every form of judicial process as is enjoyed by the parties, except to the extent that the council may expressly waive its immunity for the purposes of any proceedings or by the terms of any contract.
    The property and assets of the council, wherever located and by whomsoever held, shall be considered public property and shall be immune from search, requisition, confiscation, expropriation, or any other form of taking or foreclosure by executive or legislative action.
    The council, its property, and its assets, income and the operations it carries out under the compact shall be immune from all taxation by or under the authority of any of the parties or any political subdivision thereof. However, in lieu of property taxes, the council may make reasonable payments to local taxing districts in annual amounts that shall approximate the taxes lawfully assessed upon similar property.
    Section 2.9. Advisory committees. The council may constitute and empower advisory committees, which may be comprised of

representatives of the public and of federal, state, tribal, county, and local governments, water resources agencies, water using industries and sectors, water interest groups, and academic experts in related fields.

ARTICLE 3


GENERAL POWERS AND DUTIES


    Section 3.1. General. The waters and water dependent natural resources of the basin are subject to the sovereign right and responsibilities of the parties, and it is the purpose of the compact to provide for joint exercise of such powers of sovereignty by the council in the common interests of the people of the region, in the manner and to the extent provided in the compact. The council and the parties shall use the standard of review and decision and procedures contained in or adopted under the compact as the means to exercise their authority under the compact.
    The council may revise the standard of review and decision, after consultation with the provinces and upon unanimous vote of all council members, by regulation duly adopted in accordance with section 3.3 of the compact and in accordance with each party's respective statutory authorities and applicable procedures.
    The council shall identify priorities and develop plans and policies relating to basin water resources. It shall adopt and promote uniform and coordinated policies for water resources conservation and management in the basin.
    Section 3.2. Council powers. The council may:
        1. plan;
        2. conduct research and collect, compile, analyze, interpret, report, and disseminate data on water resources and uses;
        3. forecast water levels;
        4. conduct investigations;
        5. institute court actions;
        6. design, acquire, construct, reconstruct, own, operate, maintain, control, sell, and convey real and personal property and any interest therein as it may deem necessary, useful or convenient to carry out the purposes of the compact;
        7. make contracts;
        8. receive and accept such payments, appropriations, grants, gifts, loans, advances, and other funds, properties, and services as may be transferred or made available to it by any party or by any other public or private agency, corporation, or individual; and
        9. exercise such other and different powers as may be delegated to it by the compact or otherwise under law, and have and exercise all powers necessary or convenient to carry out its express powers or which may be reasonably implied therefrom.
    Section 3.3. Rules and regulations.
        1. The council may promulgate and enforce such rules and regulations as may be necessary for the implementation and enforcement of the compact. The council may adopt by regulation, after public notice and public hearing, reasonable

application fees with respect to those proposals for exceptions that are subject to council review under section 4.9 of the compact. Any rule or regulation of the council, other than one that deals solely with the internal management of the council or its property, shall be adopted only after public notice and hearing.
        2. Each party, in accordance with its respective statutory authorities and applicable procedures, may adopt and enforce rules and regulations to implement and enforce the compact and the programs adopted by such party to carry out the management programs contemplated by the compact.
    Section 3.4. Program review and findings.
        1. Each party shall submit a report to the council and the regional body detailing its water management and conservation and efficiency programs that implement the compact. The report shall set out the manner in which water withdrawals are managed by sector, water source, quantity, or any other means, and how the provisions of the standard of review and decision and conservation and efficiency programs are implemented. The first report shall be provided by each party one (1) year from the effective date of the compact and thereafter every five (5) years.
        2. The council, in cooperation with the provinces, shall review its water management and conservation and efficiency programs and those of the parties that are established in the compact and make findings on whether the water management program provisions in the compact are being met and, if not, recommend options to assist the parties in meeting the provisions of the compact. Such review shall take place:
            a. thirty (30) days after the first report is submitted by all parties;
            b. every five (5) years after the effective date of the compact; and
            c. at any other time at the request of one (1) of the parties.
        3. As one of its duties and responsibilities, the council may recommend a range of approaches to the parties with respect to the development, enhancement, and application of water management and conservation and efficiency programs to implement the standard of review and decision reflecting improved scientific understanding of the waters of the basin, including groundwater, and the impacts of withdrawals on the basin ecosystem.

ARTICLE 4


WATER MANAGEMENT AND REGULATION


    Section 4.1. Water resources inventory, registration, and reporting.
        1. Within five (5) years of the effective date of the compact, each party shall develop and maintain a water resources inventory for the collection, interpretation, storage, retrieval exchange, and dissemination of information concerning the water resources of the party, including, but not limited to,

information on the location, type, quantity, and use of those resources and the location, type, and quantity of withdrawals, diversions, and consumptive uses. To the extent feasible, the water resources inventory shall be developed in cooperation with local, state, federal, tribal, and other private agencies and entities, as well as the council. Each party's agencies shall cooperate with that party in the development and maintenance of the inventory.
        2. The council shall assist each party to develop a common base of data regarding the management of the water resources of the basin and to establish systematic arrangements for the exchange of those data with other states and provinces.
        3. To develop and maintain a compatible base of water use information, within five (5) years of the effective date of the compact any person who withdraws water in an amount of one hundred thousand (100,000) gallons per day or greater average in any thirty (30) day period (including consumptive uses) from all sources, or diverts water of any amount, shall register the withdrawal or diversion by a date set by the council unless the person has previously registered in accordance with an existing state program. The person shall register the withdrawal or diversion with the originating party using a form prescribed by the originating party that shall include, at a minimum and without limitation:
            a. the name and address of the registrant and date of registration;
            b. the locations and sources of the withdrawal or diversion;
            c. the capacity of the withdrawal or diversion per day and the amount withdrawn or diverted from each source;
            d. the uses made of the water;
            e. places of use and places of discharge; and
            f. such other information as the originating party may require.
        All registrations shall include an estimate of the volume of the withdrawal or diversion in terms of gallons per day average in any thirty (30) day period.
        4. All registrants shall annually report the monthly volumes of the withdrawal, consumptive use, and diversion in gallons to the originating party and any other information requested by the originating party.
        5. Each party shall annually report the information gathered under this section to a Great Lakes_St. Lawrence River water use data base repository, and aggregated information shall be made publicly available, consistent with the confidentiality requirements in section 8.3 of the compact.
        6. Information gathered by the parties under this section shall be used to improve the sources and applications of scientific information regarding the waters of the basin and the impacts of the withdrawals and diversions from various locations and water sources on the basin ecosystem, and to better understand

the role of groundwater in the basin. The council and the parties shall coordinate the collection and application of scientific information to further develop a mechanism by which individual and cumulative impacts of withdrawals, consumptive uses, and diversions shall be assessed.
    Section 4.2. Water conservation and efficiency programs.
        1. The council commits to identify, in cooperation with the provinces, basinwide water conservation and efficiency objectives to assist the parties in developing their water conservation and efficiency program. These objectives are based on the goals of:
            a. ensuring improvement of the waters and water dependent natural resources;
            b. protecting and restoring the hydrologic and ecosystem integrity of the basin;
            c. retaining the quantity of surface water and groundwater in the basin;
            d. ensuring sustainable use of waters of the basin; and
            e. promoting the efficiency of use and reducing losses and waste of water.
        2. Within two (2) years of the effective date of the compact, each party shall develop its own water conservation and efficiency goals and objectives consistent with the basinwide goals and objectives, and shall develop and implement a water conservation and efficiency program, either voluntary or mandatory, within its jurisdiction based on the party's goals and objectives. Each party shall annually assess its programs in meeting the party's goals and objectives, report to the council and the regional body and make this annual assessment available to the public.
        3. Beginning five (5) years after the effective date of the compact, and every five (5) years thereafter, the council, in cooperation with the provinces, shall review and modify as appropriate the basinwide objectives, and the parties shall have regard for any such modifications in implementing their programs. This assessment will be based on examining new technologies, new patterns of water use, new resource demands and threats, and cumulative impact assessment under section 4.15.
        4. Within two (2) years of the effective date of the compact, the parties commit to promote environmentally sound and economically feasible water conservation measures such as:
            a. measures that promote efficient use of water;
            b. identification and sharing of best management practices and state of the art conservation and efficiency technologies;
            c. application of sound planning principles;
            d. demand-side and supply-side measures or incentives; and
            e. development, transfer, and application of science and research.
        5. Each party shall implement in accordance with paragraph 2

above a voluntary or mandatory water conservation program for all, including existing basin water users. Conservation programs need to adjust to new demands and the potential impacts of cumulative effects and climate.
    Section 4.3. Party powers and duties.
        1. Each party, within its jurisdiction, shall manage and regulate new or increased withdrawals, consumptive uses, and diversions, including exceptions, in accordance with the compact.
        2. Each party shall require an applicant to submit an application in such manner and with such accompanying information as the party shall prescribe.
        3. No party may approve a proposal if the party determines that the proposal is inconsistent with the compact or the standard of review and decision or any implementing rules or regulations promulgated thereunder. The party may approve, approve with modifications, or disapprove any proposal depending on the proposal's consistency with the compact and the standard of review and decision.
        4. Each party shall monitor the implementation of any approved proposal to ensure consistency with the approval and may take all necessary enforcement actions.
        5. No party shall approve a proposal subject to council or regional review, or both, under the compact unless it shall have been first submitted to and reviewed by either the council or regional body, or both, and approved by the council, as applicable. Sufficient opportunity shall be provided for comment on the proposal's consistency with the compact and the standard of review and decision. All such comments shall become part of the party's formal record of decision, and the party shall take into consideration any such comments received.
    Section 4.4. Requirement for originating party approval. No proposal subject to management and regulation under the compact shall hereafter be undertaken by any person unless it shall have been approved by the originating party.
    Section 4.5. Regional review.
        1. General.
            a. It is the intention of the parties to participate in regional review of proposals with the provinces, as described in the compact and the agreement.
            b. Unless the applicant or the originating party otherwise requests, it shall be the goal of the regional body to conclude its review no later than ninety (90) days after notice under paragraph 2 of this section of such proposal is received from the originating party.
            c. Proposals for exceptions subject to regional review shall be submitted by the originating party to the regional body for regional review and, where applicable, to the council for concurrent review.
            d. The parties agree that the protection of the integrity of the

Great Lakes_St. Lawrence River basin ecosystem shall be the overarching principle for reviewing proposals subject to regional review, recognizing uncertainties with respect to demands that may be placed on basin water, including groundwater, levels and flows of the Great Lakes and the St. Lawrence River, future changes in environmental conditions, the reliability of existing data, and the extent to which diversions may harm the integrity of the basin ecosystem.
            e. The originating party shall have lead responsibility for coordinating information for resolution of issues related to evaluation of a proposal, and shall consult with the applicant throughout the regional review process.
            f. A majority of the members of the regional body may request regional review of a regionally significant or potentially precedent setting proposal. Such regional review must be conducted, to the extent possible, within the time frames set forth in this section. Any such regional review shall be undertaken only after consulting the applicant.
        2. Notice from originating party to the regional body.
            a. The originating party shall determine if a proposal is subject to regional review. If so, the originating party shall provide timely notice to the regional body and the public.
            b. Such notice shall not be given unless and until all information, documents, and the originating party's technical review needed to evaluate whether the proposal meets the standard of review and decision have been provided.
            c. An originating party may:
                i. provide notice to the regional body of an application, even if notification is not required; or
                ii. request regional review of an application, even if regional review is not required. Any such regional review shall be undertaken only after consulting the applicant.
            d. An originating party may provide preliminary notice of a potential proposal.
        3. Public participation.
            a. To ensure adequate public participation, the regional body shall adopt procedures for the review of proposals that are subject to regional review in accordance with this article of the compact.
            b. The regional body shall provide notice to the public of a proposal undergoing regional review. Such notice shall indicate that the public has an opportunity to comment in writing to the regional body on whether the proposal meets the standard of review and decision.
            c. The regional body shall hold a public meeting in the state or province of the originating party in order to receive public comment on the issue of whether the proposal under consideration meets the standard of review and decision.
            d. The regional body shall consider the comments received before issuing a declaration of finding.             e. The regional body shall forward the comments it receives to the originating party.
        4. Technical review.
            a. The originating party shall provide the regional body with its technical review of the proposal under consideration.
            b. The originating party's technical review shall thoroughly analyze the proposal and provide an evaluation of the proposal sufficient for a determination of whether the proposal meets the standard of review and decision.
            c. Any member of the regional body may conduct the member's own technical review of any proposal subject to regional review.
            d. At the request of the majority of its members, the regional body shall make such arrangements as it considers appropriate for an independent technical review of a proposal.
            e. All parties shall exercise their best efforts to ensure that a technical review undertaken under sections 4.5.4.c and 4.5.4.d does not unnecessarily delay the decision by the originating party on the application. Unless the applicant or the originating party otherwise requests, all technical reviews shall be completed no later than sixty (60) days after the date the notice of the proposal was given to the regional body.
        5. Declaration of finding.
            a. The regional body shall meet to consider a proposal. The applicant shall be provided with an opportunity to present the proposal to the regional body at such time.
            b. The regional body, having considered the notice, the originating party's technical review, any other independent technical review that is made, any comments or objections including the analysis of comments made by the public, First Nations and federally recognized tribes, and any other information that is provided under the compact shall issue a declaration of finding that the proposal under consideration:
                i. meets the standard of review and decision;
                ii. does not meet the standard of review and decision; or
                iii. would meet the standard of review and decision if certain conditions were met.
            c. An originating party may decline to participate in a declaration of finding made by the regional body.
            d. The parties recognize and affirm that it is preferable for all members of the regional body to agree whether the proposal meets the standard of review and decision.
            e. If the members of the regional body who participate in the declaration of finding all agree, they shall issue a written declaration of finding with consensus.
            f. In the event that the members cannot agree, the regional body shall make every reasonable effort to achieve consensus within twenty-five (25) days.             g. Should consensus not be achieved, the regional body may issue a declaration of finding that presents different points of view and indicates each party's conclusions.
            h. The regional body shall release the declarations of finding to the public.
            i. The originating party and the council shall consider the declaration of finding before making a decision on the proposal.
    Section 4.6. Proposals subject to prior notice.
        1. Beginning no later than five (5) years after the effective date of the compact, the originating party shall provide all parties and the provinces with detailed and timely notice and an opportunity to comment within ninety (90) days on any proposal for a new or increased consumptive use of five million (5,000,000) gallons per day or greater average in any ninety (90) day period. Comments shall address whether or not the proposal is consistent with the standard of review and decision. The originating party shall provide a response to any such comment received from another party.
        2. A party may provide notice, an opportunity to comment, and a response to comments even if this is not required under paragraph 1 of this section. Any provision of such notice and opportunity to comment shall be undertaken only after consulting the applicant.
    Section 4.7. Council actions.
        1. Proposals for exceptions subject to council review shall be submitted by the originating party to the council for council review and, where applicable, to the regional body for concurrent review.
        2. The council shall review and take action on proposals in accordance with the compact and the standard of review and decision. The council shall not take action on a proposal subject to regional review under the compact unless the proposal shall have been first submitted to and reviewed by the regional body. The council shall consider any findings resulting from such review.
    Section 4.8. Prohibition of new or increased diversions. All new or increased diversions are prohibited, except as provided for in this article of the compact.
    Section 4.9. Exceptions to the prohibition of diversions.
        1. Straddling communities. A proposal to transfer water to an area within a straddling community but outside the basin or outside the source Great Lake watershed shall be excepted from the prohibition against diversions and be managed and regulated by the originating party provided that, regardless of the volume of water transferred, all the water so transferred shall be used solely for public water supply purposes within the straddling community, and:
            a. all water withdrawn from the basin shall be returned, either naturally or after use, to the source watershed less an

allowance for consumptive use. No surface water or groundwater from outside the basin may be used to satisfy any portion of this criterion except if it:
                i. is part of a water supply or wastewater treatment system that combines water from inside and outside of the basin;
                ii. is treated to meet applicable water quality discharge standards and to prevent the introduction of invasive species into the basin; and
                iii. maximizes the portion of water returned to the source watershed as basin water and minimizes the surface water or groundwater from outside the basin;
            b. if the proposal results from a new or increased withdrawal of one hundred thousand (100,000) gallons per day or greater average over any ninety (90) day period, the proposal shall also meet the exception standard; and
            c. if the proposal results in a new or increased consumptive use of five million (5,000,000) gallons per day or greater average over any ninety (90) day period, the proposal shall also undergo regional review.
        2. Intra-basin transfer. A proposal for an intra-basin transfer that would be considered a diversion under the compact, and not already excepted under paragraph 1 of this section, shall be excepted from the prohibition against diversions, provided that:
            a. If the proposal results from a new or increased withdrawal less than one hundred thousand (100,000) gallons per day average over any ninety (90) day period, the proposal shall be subject to management and regulation at the discretion of the originating party.
            b. If the proposal results from a new or increased withdrawal of one hundred thousand (100,000) gallons per day or greater average over any ninety (90) day period and if the consumptive use resulting from the withdrawal is less than five million (5,000,000) gallons per day average over any ninety (90) day period:
                i. the proposal shall meet the exception standard and be subject to management and regulation by the originating party, except that the water may be returned to another Great Lake watershed rather than the source watershed;
                ii. the applicant shall demonstrate that there is no feasible, cost effective, and environmentally sound water supply alternative within the Great Lake watershed to which the water will be transferred, including conservation of existing water supplies; and
                iii. the originating party shall provide notice to the other parties prior to making any decision with respect to the proposal.
            c. If the proposal results in a new or increased consumptive use of five million (5,000,000) gallons per day or greater average over any ninety (90) day period:
                i. the proposal shall be subject to management and

regulation by the originating party and shall meet the exception standard, ensuring that water withdrawn shall be returned to the source watershed;
                ii. the applicant shall demonstrate that there is no feasible, cost effective, and environmentally sound water supply alternative within the Great Lake watershed to which the water will be transferred, including conservation of existing water supplies;
                iii. the proposal undergoes regional review; and
                iv. the proposal is approved by the council. Council approval shall be given unless one (1) or more council members vote to disapprove.
        3. Straddling counties. A proposal to transfer water to a community within a straddling county that would be considered a diversion under the compact shall be excepted from the prohibition against diversions, provided that it satisfies all of the following conditions:
            a. The water shall be used solely for the public water supply purposes of the community within a straddling county that is without adequate supplies of potable water.
            b. The proposal meets the exception standard, maximizing the portion of water returned to the source watershed as basin water and minimizing the surface water or groundwater from outside the basin.
            c. The proposal shall be subject to management and regulation by the originating party, regardless of its size.
            d. There is no reasonable water supply alternative within the basin in which the community is located, including conservation of existing water supplies.
            e. Caution shall be used in determining whether or not the proposal meets the conditions for this exception. This exception should not be authorized unless it can be shown that it will not endanger the integrity of the basin ecosystem.
            f. The proposal undergoes regional review.
            g. The proposal is approved by the council. Council approval shall be given unless one (1) or more council members vote to disapprove.
        A proposal must satisfy all of the conditions listed above. Further, substantive consideration will also be given to whether or not the proposal can provide sufficient scientifically based evidence that the existing water supply is derived from groundwater that is hydrologically interconnected to waters of the basin.
        4. Exception standard. Proposals subject to management and regulation in this section shall be declared to meet this exception standard and may be approved as appropriate only when the following criteria are met:
            a. The need for all or part of the proposed exception cannot be reasonably avoided through the efficient use and conservation of existing water supplies.             b. The exception will be limited to quantities that are considered reasonable for the purposes for which it is proposed.
            c. All water withdrawn shall be returned, either naturally or after use, to the source watershed less an allowance for consumptive use. No surface water or groundwater from outside the basin may be used to satisfy any portion of this criterion except if it:
                i. is part of a water supply or wastewater treatment system that combines water from inside and outside the basin; and
                ii. is treated to meet applicable water quality discharge standards and to prevent the introduction of invasive species into the basin.
            d. The exception will be implemented so as to ensure that it will result in no significant individual or cumulative adverse impacts to the quantity or quality of the waters and water dependent natural resources of the basin with consideration given to the potential cumulative impacts of any precedent setting consequences associated with the proposal.
            e. The exception will be implemented so as to incorporate environmentally sound and economically feasible water conservation measures to minimize water withdrawals or consumptive use.
            f. The exception will be implemented so as to ensure that it is in compliance with all applicable municipal, state, and federal laws as well as regional interstate and international agreements, including the Boundary Waters Treaty of 1909.
            g. All other applicable criteria in this section have also been met.
    Section 4.10. Management and regulation of new or increased withdrawals and consumptive uses.
        1. Within five (5) years of the effective date of the compact, each party shall create a program for the management and regulation of new or increased withdrawals and consumptive uses by adopting and implementing measures consistent with the decision making standard. Each party, through a considered process, shall set and may modify threshold levels for the regulation of new or increased withdrawals in order to assure an effective and efficient water management program that will ensure that uses overall are reasonable, that withdrawals overall will not result in significant impacts to the waters and water dependent natural resources of the basin determined on the basis of significant impacts to the physical, chemical, and biological integrity of source watersheds, and that all other objectives of the compact are achieved. Each party may determine the scope and thresholds of its program, including which new or increased withdrawals and consumptive uses will be subject to the program.
        2. Any party that fails to set threshold levels that comply with paragraph 1 of this section any time before ten (10) years after

the effective date of the compact shall apply a threshold level for management and regulation of all new or increased withdrawals of one hundred thousand (100,000) gallons per day or greater average in any ninety (90) day period.
        3. The parties intend programs for new or increased withdrawals and consumptive uses to evolve as may be necessary to protect basin waters. Pursuant to section 3.4, the council, in cooperation with the provinces, shall periodically assess the water management programs of the parties. Such assessments may produce recommendations for the strengthening of the programs, including without limitation, establishing lower thresholds for management and regulation in accordance with the decision making standard.
    Section 4.11. Decision making standard. Proposals subject to management and regulation in section 4.10 shall be declared to meet this decision making standard and may be approved as appropriate only when the following criteria are met:
        1. All water withdrawn shall be returned, either naturally or after use, to the source watershed less an allowance for consumptive use.
        2. The withdrawal or consumptive use will be implemented so as to ensure that the proposal will result in no significant individual or cumulative adverse impacts to the quantity or quality of the waters and water dependent natural resources and the applicable source watershed.
        3. The withdrawal or consumptive use will be implemented so as to incorporate environmentally sound and economically feasible water conservation measures.
        4. The withdrawal or consumptive use will be implemented so as to ensure that it is in compliance with all applicable municipal, state, and federal laws as well as regional interstate and international agreements, including the Boundary Waters Treaty of 1909.
        5. The proposed use is reasonable, based upon a consideration of the following factors:
            a. Whether the proposed withdrawal or consumptive use is planned in a fashion that provides for efficient use of the water, and will avoid or minimize the waste of water.
            b. If the proposal is for an increased withdrawal or consumptive use, whether efficient use is made of existing water supplies.
            c. The balance between economic development, social development, and environmental protection of the proposed withdrawal and use an