Great Lakes Compact

Great Lakes Compact. The Great Lakes–St. Lawrence River Basin Water Resources Compact is a legally binding interstate agreement among the eight U.S. states bordering the Great Lakes. Enacted by the United States Congress in 2008, it establishes a cooperative framework for managing the world's largest surface freshwater system. The agreement aims to prevent large-scale diversions of water outside the basin while promoting sustainable use within the region.

Background and history

The impetus for a formal management compact grew from concerns over proposed water diversions to arid regions like the Southwestern United States and international incidents such as a 1998 case where a company sought to export Lake Superior water to Asia. These events highlighted the lack of a unified legal framework, as water law was primarily governed by individual states and the common law doctrine of riparian water rights. Earlier efforts, including the non-binding Great Lakes Charter of 1985 and the subsequent Great Lakes Charter Annex in 2001, proved insufficient. The negotiation process, involving the Council of Great Lakes Governors, state legislatures, federal agencies, Canadian provinces, and Tribal governments, culminated in the compact's signing in 2005. Its ratification by all member states and the United States Congress was completed in 2008, coinciding with the passage of a companion agreement, the Great Lakes–St. Lawrence River Basin Sustainable Water Resources Agreement, with the Canadian provinces of Ontario and Quebec.

Key provisions

The compact's core principle is a general prohibition on new or increased diversions of water outside the Great Lakes Basin, with limited, strictly regulated exceptions for communities straddling the basin boundary. It requires each member state to develop a comprehensive water conservation and management program, implementing a consistent standard of review for proposed major withdrawals. A critical provision establishes that the waters of the basin are a shared public trust resource, a concept drawing from legal precedents like the Public Trust Doctrine. The agreement sets specific thresholds for regulating water use, requiring permits for new or increased withdrawals exceeding 100,000 gallons per day from all sources. It also mandates the protection of the basin's ecosystem and requires the application of a rigorous standard of proof, known as the "improvement or no significant adverse impact" standard, for any proposed exception to the diversion ban.

Implementation and governance

Primary implementation authority rests with the individual member states, which must enact statutes and regulations meeting or exceeding the compact's minimum standards. Day-to-day management and permitting decisions are handled by state agencies such as the Michigan Department of Environment, Great Lakes, and Energy and the Wisconsin Department of Natural Resources. The compact created a new interstate agency, the Great Lakes–St. Lawrence River Basin Water Resources Council, composed of the governors of each member state, to oversee regional coordination. This council is responsible for reviewing applications for exceptions to the diversion ban, facilitating data collection through bodies like the Great Lakes Commission, and resolving disputes between states. The United States Army Corps of Engineers also plays a role in monitoring water levels and flows, while the International Joint Commission continues to address transboundary issues with Canada.

Legal and political challenges

The compact has faced scrutiny and legal tests since its enactment. A major early challenge involved the city of Waukesha, Wisconsin, which, despite being outside the basin boundary, applied for a diversion exception in 2010 under the compact's straddling community provision. After a six-year review process involving all eight states and public hearings, the Great Lakes–St. Lawrence River Basin Water Resources Council approved the application with strict conditions in 2016, a decision that was subsequently challenged in court by the Great Lakes and St. Lawrence Cities Initiative. Other controversies have arisen from proposals for large water withdrawals for commercial bottling operations within states like Michigan, testing the limits of in-basin use regulations. Legal scholars and environmental groups, including the National Wildlife Federation, continue to debate the compact's resilience against future pressures from climate change, population shifts, and potential legal challenges under the Dormant Commerce Clause of the United States Constitution.

Environmental and economic impact

By establishing a high legal barrier to diversions, the compact has helped protect the Great Lakes from large-scale water exports, preserving the ecological integrity of a system containing nearly 20% of the world's surface freshwater. This protection supports critical habitats, commercial and recreational fisheries, and the restoration of areas of concern like the Great Lakes Areas of Concern. Economically, the agreement provides regulatory certainty for major water-dependent industries, including manufacturing, agriculture, shipping on the Saint Lawrence Seaway, and tourism in cities like Chicago and Cleveland. It has also spurred innovation in water conservation technology and infrastructure, influencing regional planning by entities such as the Northeast Midwest Institute. The framework is seen as a model for interstate and international water resource management, balancing economic development with the long-term sustainability of a vital shared resource.