Natural resources: inland lakes; dam safety regulations; provide for. Amends and adds (See bill).

The 15 acre-feet impounding capacity threshold in the dam definition now applies only to high hazard potential or significant hazard potential dams, rather than all dams. This means some smaller low-hazard dams that would previously have been regulated are now excluded.

Comprehensive evaluation reports under section 31518a are now mandatory only for high hazard potential and significant hazard potential dams. For low hazard potential dams, the department may require them at its discretion rather than it being an automatic obligation.

Phased fee increases tied to a 2026 amendatory act were removed. Permit fees are now flat: $500 (6-10 ft), $1,000 (10-20 ft), $3,000 (20+ ft). Repair/alteration permit fees stay at $200 instead of increasing to $500, and minor project fees stay at $100 instead of increasing to $300.

Registration fees under section 31509a were eliminated entirely. Previously owners paid $500, $1,000, or $3,000 based on dam height to register. Renewal no longer requires a fee either.

Preapplication meeting fees were eliminated. Previously applicants paid $150 for a meeting at a district office or $300 for a meeting at the project site.

Dam registration validity was reduced from 15 years to 10 years. Each registration round is now capped at a maximum of 2 years duration.

A new provision grants the state and department immunity from damages lawsuits caused by partial or total dam failure resulting from the department's inspection or regulation of the dam under this part.

If work is done in violation of a permit requirement, the department may accept a permit application accompanied by a fee equal to twice the normal application fee, providing a path to regularize unauthorized work.

The department may now issue a conditional permit before the 20-day public notice period expires if emergency conditions exist that warrant the project to protect property or public health, safety, or welfare.

The department's authority over permits was narrowed from 'suspend, revoke, or modify' to 'revoke or modify,' removing explicit suspension authority.

A 5-year exemption was added: the department cannot recover emergency action costs or dam safety emergency fund expenditures from an owner for 5 years after a dam comes under local government ownership by means of tax foreclosure.

New requirement that permit transfer applications must include a written agreement between current and new owners specifying a date for transfer of responsibility, coverage, and liability under the permit.

Inspection reports must now include recommendations for more detailed investigations or evaluations as needed to determine the condition of the dam, and the department may modify approved deficiency schedules based on dam conditions.

The fee inflation adjustment mechanism was changed from the Detroit Consumer Price Index (Detroit-Warren-Dearborn area) to the United States Consumer Price Index, and now applies only to section 31509 fees rather than both 31509 and 31509a.

The definition of 'dam' was narrowed to require all three of: (a) impounds or diverts water, (b) is at least 6 feet in height, and (c) has either 5 surface acres of impounding capacity or, for high/significant hazard potential dams, 15 acre-feet. This excludes smaller structures from state jurisdiction.

A new FOIA exemption (section 31506(3)) shields documents submitted for dams designated as critical energy infrastructure by the U.S. Department of Energy from public disclosure under the freedom of information act.

The federal power act exemption was broadened to include not just licensed projects but also projects with preliminary permits or pending license applications, provided federal dam safety inspection provisions apply and reports are shared with the state.

A new staggered registration system (section 31509a) requires all dam owners to register with the department in 5 rounds over 10 years, starting 6 months after the 2026 amendatory act takes effect. Registration requires proof of ownership, an asset management plan with life cycle cost analysis, and demonstrated compliance with inspection, surveillance, O&M, and safety/security requirements. Registrations are valid for 10 years.

New sections require owners to prepare and maintain: a surveillance and monitoring plan (31518b), an operation and maintenance plan (31518c), a safety and security plan with physical security measures and 24-hour incident notification (31518d), and comprehensive evaluation reports every 10 years for high and significant hazard potential dams (31518a).

Inspection frequency for significant hazard potential dams was increased from once every 4 years to once every 2 years. The department must now establish an inspection schedule requiring annual submission of reports for approximately one-third of high hazard, one-half of significant hazard, and one-fifth of low hazard potential dams.

A new preapplication meeting process (section 31509(9)) allows applicants to request a meeting with the department before submitting a permit application. The department must meet within 30 days at its district office or the project site.

A new section (31506a) requires owners of dams previously licensed under the federal power act that subsequently come under state jurisdiction to provide the department with the full inventory of information previously submitted to FERC.

Emergency action plan requirements were expanded to include annual review and update, submission to county/local emergency management coordinators and zoning authorities, consistency review with local emergency operations plans, inundation mapping, coordination on multi-dam river systems, and a requirement to exercise the plan at least once every 5 years.

A new provision (section 31509(7)) allows the department to accept a permit application for work already done in violation of a permit, provided the applicant pays twice the normal application fee.

A new Dam Safety Emergency Fund (section 31528a) is created in the state treasury to finance remedial or corrective actions when an owner is unable or unwilling to address significant safety risks. The department and attorney general may recover costs from the owner.

A new Dam Risk Reduction Grant Program (section 31528b) provides grants to owners for dam repair, alteration, removal, and associated scoping/engineering plans. Owners must contribute at least 10% matching funds.

Spillway capacity requirements were restructured: high hazard potential dams under 40 feet must pass the 200-year flood; those 40 feet or greater must pass the half probable maximum flood but this can be reduced to not less than the 200-year flood with proper documentation. A new provision allows criteria to be reduced based on a site-specific, consequence-based, or risk-based inflow design flood study.

New definitions added for 'high hazard potential dam' (based on potential damage to inhabited homes, public utilities, main highways, interstate roads, class I railroads, or significant environmental degradation) and 'probable maximum flood.' Existing definitions for low and significant hazard potential dams were updated to reference the National Functional Classification system.

A new fee adjustment mechanism (section 31509b) requires the department to adjust permit fees every 3 years beginning January 1, 2029, based on cumulative CPI changes over the preceding 3-year period.

A new state immunity provision (section 31517(5)) bars lawsuits against the state or department for damages caused by partial or total dam failure resulting from the department's inspection or regulation of the dam.

Emergency order provisions were restructured to give the department more specific options (specifying maximum drawdown levels, discharge rates, sediment surveys, water quality sampling) and added a provision allowing modification of orders during implementation. The hearing process now requires the owner to petition within 15 days.

The department's authority over permits was narrowed from being able to 'suspend, revoke, annul, withdraw, recall, cancel, or amend' a permit to only being able to 'revoke or modify' it after a hearing.

The bill's substitute designation was updated from (S-1) to (S-2), reflecting the standard legislative process of issuing a new substitute version.

Document identifier codes in the header/footer changed from 'nvwxs4' to 'k7pnwg', which are internal tracking codes with no policy significance.

A blank line was removed after the word 'act,' in the bill title section, a minor formatting cleanup.

New section 31509a creates a mandatory staggered registration system for all dam owners in Michigan. Owners must register in one of 5 rounds beginning 6 months after the 2026 amendatory act takes effect, submit an asset management plan (including inventory, condition assessment, failure probability analysis, funding sources, and performance evaluation), demonstrate compliance with inspection and plan requirements, and pay registration fees ($500-$3,000 based on dam height). Registrations are valid for 15 years and can be revoked for non-compliance.

New section 31518a requires owners to submit a comprehensive evaluation report prepared by a licensed professional engineer every 10 years, covering the dam's condition, original design adequacy, operation procedures, probable failure modes, conformance with current practices, and deficiencies.

New section 31518b requires owners to prepare and maintain a surveillance and monitoring plan consistent with standard engineering practices, including information on probable failure modes, assessment of surveillance data, and recommendations for analyses or remedial actions. Owners must notify the department of concerning findings within 24 hours.

New section 31518c requires owners to prepare and maintain an operation and maintenance plan including dam description, contact information, inspection schedules, normal and emergency procedures with logs, and upstream/downstream notification procedures.

New section 31518d requires owners to prepare and maintain a safety and security plan covering physical safety measures (signage, barriers, fencing), physical security measures (cameras, alarms, gates), and a response plan with detection procedures, notification flow charts, and incident reporting. Owners must notify the department of safety or security incidents within 24 hours.

New section 31517a requires owners to prepare and keep current operations and maintenance records for each dam, including descriptions of major elements, operation procedures, emergency action plans, recent inspection reports, maintenance work order procedures, sample forms, and key contact information.

Inspection frequency for significant hazard potential dams in section 31518(1)(b) is increased from every 4 years to every 2 years. High hazard (every 3 years) and low hazard (every 5 years) frequencies remain unchanged.

Section 31518(2) now requires the department to determine hazard potential classification for all dams, establish an inspection schedule, and require annual submission of inspection reports for approximately 1/3 of high hazard, 1/2 of significant hazard, and 1/5 of low hazard potential dams. Owners must respond within 30 days of receiving a classification notice with information on how they will meet the requirements.

Permit fees are substantially increased with a phased implementation. For new dam construction, reconstruction, or enlargement: fees increase from $500/$1,000/$3,000 to $1,500/$2,500/$8,000 (by height tier) after 6 months. Repair and alteration fees increase from $200 to $500; removal and abandonment fees increase from $200 to $1,000; minor project fees increase from $100 to $300. New preapplication meeting fees are added ($150 at district office, $300 at project site).

New section 31509b requires the department to adjust all fees under sections 31509 and 31509a every 3 years starting January 1, 2029, based on cumulative percentage change in the Detroit Consumer Price Index from the Bureau of Labor Statistics.

The definition of 'dam' in section 31502(6)(ii) is narrowed: the 15-acre-foot impounding capacity threshold now applies only to high hazard potential or significant hazard potential dams, rather than all dams. This means low hazard potential dams with less than 15 acre-feet but more than 5 surface acres may fall outside the definition.

Section 31516(1)(d) adds 'or the flood of record, whichever is greater' to the spillway capacity requirement for high hazard potential dams 40 feet or greater in height. A new subsection (4) allows criteria to be reduced based on a site-specific, consequence-based, or risk-based inflow design flood study approved by the department.

Section 31521 expands what the department can require in emergency orders: it can now specify maximum drawdown levels, discharge rates, and require sediment surveys, water quality sampling, monitoring, or other protective actions. The hearing timeline is clarified to 'not later than 15 days after issuance' rather than 'upon issuance.'

Section 31510 changes the public notification system from a mailed biweekly list (for a $25 annual fee) to website posting and email notification of pending registration applications and public hearing schedules.

Section 31509(5) fee waivers are restructured: instead of referencing section 31508(2), the substitute directly states that fees are waived for any nonprofit organization with assets under $30,000, 501(c)(3) status, and not composed primarily of adjacent property owners. The waiver no longer explicitly mentions state agencies or department-sponsored projects on public lands.