DNR approves diverting Lake Michigan water for Foxconn's Wisconsin plant

MADISON – For the second time in as many days, Wisconsin environmental officials signed off on plans Wednesday for Foxconn Technology Group's massive plant in Mount Pleasant — this time for millions of gallons of water a day.

Under the latest approval from the Wisconsin Department of Natural Resources, the City of Racine will be able to divert Lake Michigan water to Mount Pleasant for the Foxconn facility, which will manufacture liquid crystal display panels and employ up to 13,000 people.

News of the DNR water diversion approval came the same day as a top Foxconn official said in Milwaukee that the company would be announcing its construction plans in coming days.

Environmentalists have questioned the Foxconn deal, raising the prospect they could challenge the approval.

Ezra Meyer, a water resources specialist with Clean Wisconsin, said his group and others were reviewing whether the approval violated the Great Lakes Compact, an agreement among Great Lakes states and Canadian provinces that governs how water from the lakes can be used.

“This proposed diversion does not meet the letter or spirit of the Great Lakes Compact," Meyer said in a statement. "Racine’s application is clear in stating that none of the diverted water from Lake Michigan would be used for public purposes, as required by the compact and state law.”

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Racine Mayor Cory Mason — who as a Democratic lawmaker helped get the compact approved by the Wisconsin Legislature — disputed that, saying Foxconn's plans were in keeping with the compact.

"I think we can create jobs and protect the environment at the same time," he said.

Wednesday's approval will allow Racine to divert an average of 7 million gallons a day. Of that, the city says 5.8 million gallons is to be used by Foxconn.

One reason environmentalists are concerned is because 2.7 million gallons per day will not be returned to the Great Lakes basin, largely because of evaporation.

DNR spokesman Jim Dick said other Great Lakes states and provinces do not need to sign off on the arrangement under the compact because less than 5 million gallons per day will be lost.

According to the DNR, 9.6 billion gallons of water were withdrawn from Lake Michigan in 2016.

"Racine's requested 7 million gallons per day withdrawal would only amount to a 0.07 percent increase in the total surface water withdrawals from Lake Michigan," said a statement from the agency.

The DNR and Racine officials noted the company’s water needs will still fall far below the industrial demand of 20 years ago.

The situation is being closely watched in part because Foxconn's plant will be in Mount Pleasant, which is situated in both the Lake Michigan and Mississippi River basins. The DNR is responsible for approving water diversions for communities that straddle the two basins.

The DNR permission came a day after the agency granted Foxconn air permits that will allow the company to emit volatile organic compounds and nitrogen oxides, two compounds that create health risks.

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The air and water approvals were expected because Gov. Scott Walker has made the $10 billion facility a top priority. The company is receiving about $4 billion in assistance from state and local taxpayers, with most of the money coming from an incentive package negotiated by Walker.

DNR officials said they followed normal procedures in granting the approvals.

Foxconn released a statement praising the decision and saying it would seek to minimize its overall water use and reuse wastewater in its plant.

"We take a systematic approach towards integrating green and sustainable practices into our global operations," the company statement said.

Environmental groups and residents have raised concerns about Foxconn on numerous fronts — the lack of a state wetlands review and no requirements for a state environmental impact statement, for example. Those groups question whether the water diversion meets requirements of the Great Lakes Compact and state law.

A key point, they say, is whether Racine’s request to divert water meets the test for public use because it will be piped to a factory.