A state administrative law judge has ruled that the City of Racine’s plans are proper to divert millions of gallons of water from Lake Michigan for Foxconn Technology Group.

The ruling by Brian K. Hayes on Friday found that Racine’s plans to sell water to the Village of Mount Pleasant, which in turn will be selling most of the water to Foxconn, met requirements of the Great Lakes Compact.

The 2008 agreement of Great Lakes states was written to safeguard water resources in Lake Michigan and the rest of the Great Lakes from those outside the basin.

Foxconn’s property for a manufacturing plant that the company says will invest $10 billion and employ 13,000 workers straddles the Lake Michigan and Mississippi River basins. The compact provides for exceptions in sending water outside the basin for communities such as Mount Pleasant that straddle the divide.

And in his decision, Hayes said Racine’s request to send up to 7 million gallons of water daily, primarily to serve the Taiwan company’s needs, met requirements of the compact and state law.

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A key issue raised in a challenge from environmental groups was their claim that the water going to Foxconn failed to satisfy compact wording that a diversion must be for “public water supply purposes,” serving a “group of largely residential customers.”

But Hayes said the compact also allows for diversions for industrial and commercial users.

“Petitioners fail to see that the statute’s intent is to allow a system serving many kinds of customers as a public water supply purpose,” he wrote.

The use of Lake Michigan water is one of an array of objections that have been raised by Foxconn opponents over how state officials handled environmental oversight of the Foxconn project, including the easing of some requirements.

The Legislature has approved up to $3 billion in state incentives for the project — a subsidy that has been heavily criticized by Democrats as excessive.

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The decision was a victory for Foxconn, Racine, Mount Pleasant and the Department of Natural Resources. The DNR under the administration of former Gov. Scott Walker, a Republican, approved Racine’s bid for water.

But the agency, now under the leadership of Democratic Gov. Tony Evers, also said it agreed with the ruling.

“We are in support of the decision, as that is our position,” DNR spokeswoman Sarah Hoye said in an email on Monday.

Madison-based Midwest Environmental Advocates challenged Racine’s request on behalf of six environmental organizations.

“While this ruling is disappointing, we stand by our interpretation of the 'public water supply purposes' requirement which prohibits the diversion of Great Lakes water for the benefit of a singular industrial user,” said Tressie Kamp, an attorney for the group.

Mount Pleasant Village President David DeGroot said in a statement that the “diversion will support broader I-94 corridor development, creating even more Racine County jobs, patrons and residents.”