What is it?

First and foremost, THIS FEE IS NOT A FINE.  In accordance with  R. 325.1011b, Sec 11b(1) of Michigan's Safe Drinking Water Act,  all noncommunity water supplies are assessed an annual fee.  These invoices are sent to over 10,800 NCPWS systems each year. 

What is the fee used for?

Federal law requires all states to implement the Safe Drinking Water Act, which includes regulating noncommunity water supplies.  The federal rules allow states to reduce or waive many of the requirements based on inspections, tracking of historical data, and assessments of the water supply's vulnerability.

The fees collected are used to help provide the funding to enable the DEQ to contract with local health departments to perform the required activities listed above.  Retaining state and local control of the program  may help to save the water supply owner considerable time, effort and/or money by:

• allowing more flexibility in implementation of certain rules, including reduction of some sampling requirements. 
• by providing easier access to technical assistance and information to public water system owners and the people of Michigan.  

For example, under Federal regulations, a nontransient noncommunity water supply would have to take at least one volatile organic water sample every quarter, at considerable expense to the owner.  Michigan may allow a reduction in that number to once every six years, provided the supply is not at risk for VOC contamination.

Why did I get billed?

The DEQ invoices noncommunity public water supplies based on information supplied by local health departments.    If your facility has been found to be a noncommunity water supply, (i.e., the local health department requires you to submit samples, you have a Water Supply Serial Number, you serve at least 25 people per day, etc.) you are automatically billed each fiscal year. 

Don't I already pay this when I pay for sampling?

This fee is separate from sampling fee charges, as the money is NOT spent for laboratory services.

How is the fee assessed?

Nontransient supplies pay a higher fee than Transient supplies since they generally require more work by the local health department to conduct inspections, issue water well construction permits, and monitor the additional required sampling.  The following is a synopsis of the steps involved in assessment and collection of the fees:

 1.      The fee is assessed each October 1^st for the next fiscal year, e.g. a fee is imposed on a water supply on October 1, 2004 for Fiscal Year 2005.  Invoices for the fees are generally sent out in late October or early November.

 2.      This fee is adjusted every year by applying the percentage adjustment using the Detroit consumer price index.

  3.      In addition to the Consumer Price Index adjustment, at the end of the fiscal year, 75% of any unspent fee revenue from previous annual fee payment is applied as a credit adjustment on a pro-rated basis to the fee the following year in accordance with Act 399.

  4.      The noncommunity supply must pay the annual fee by November 30^th each year.  If it is not paid by then, a penalty fee of $25 is applied to the balance each month or portion of a month after that for which the payment is delinquent.  All annual fees and any associated penalties are to be made payable to the Michigan Department of Treasury.  Any delinquent accounts are billed after 60 days for the principal fee and penalties accrued, then again at 120 days.  If they are still delinquent after 180 days, the invoice is turned over to the Michigan Department of Treasury.

  What if my facility is no longer a noncommunity water supply or the status has changed?

If, for instance, your facility :

•     connected to a municipal water supply

•     closed   

•     no longer serves at least 25 people a day for 60+ days of the year

•     has changed ownership

•     changed from a nontransient to a transient supply, or vice versa

•     has a different mailing address or name

then you must immediately 1)  send the whole invoice back to the Michigan Department of Treasure along with a note stating the changes, and 2)  notify your local health department representative in writing and inform them of any changes.