Georgia lawmakers approve private water utility bypassing county to serve homes near Hyundai plant

SAVANNAH, Ga. — Georgia lawmakers on Thursday gave final approval to a change in the law that would allow a private utility to provide water services to new homes near Hyundai’s upcoming electric car factory without first getting permission from local governments.

The Senate passed House Bill 1146 by a vote of 32-22 on the last day of the legislative session. The measure now goes to Republican Governor Brian Kemp to be signed into law.

Hyundai broke ground in October 2022 on its first U.S. factory dedicated to producing electric vehicles and the batteries that power them. It is the largest economic development project in Georgia’s history and construction is progressing rapidly as the South Korean carmaker plans to start producing cars by the end of this year.

Supporters of the bill said the legislation is needed to accelerate housing construction in Bryan County, where Hyundai plans to hire 8,500 workers at its $7.6 billion EV factory west of Savannah. They say the county’s water system cannot meet the growing need for housing in the area, but local officials are reluctant to give a private utility their permission to help provide services as the law currently requires.

“We have to find a way to meet the immediate need for worker housing, and to do that we need a private water option and a public water option,” said Sen. Max Burns, a Sylvania Republican who sponsored the bill. supported. .

Opponents argue that ignoring private utilities to city and county governments undermines their ability to manage limited water resources in Georgia’s fast-growing coastal region. The Georgia Association of Water Professionals said it would also sidestep safe drinking water rules designed to protect Georgia consumers.

Sen. Frank Ginn, a Republican from Danielsville, said he opposed the change because it could allow private utilities to disrupt local planning for growth and development. Before serving in the Legislature, Ginn worked as a city and county manager.

“As a local government guy and as a guy who has built water systems, I know how difficult it is when a private water system comes along and takes part of the county out of service,” Ginn said.

Savannah-based Water Utility Management, a private company that provides drinking water to 32,000 homes in 17 Georgia counties, pushed lawmakers to pass the bill. It would allow the company to bypass local governments that cannot provide water for the same development project within 18 months.

Water Utility Management CEO Mark Smith told a Senate committee earlier this month that the measure “would prevent the county from having a veto over a private system.”

Private utilities would still have to obtain permits from the Georgia Environmental Protection Division. Their ability to bypass local governments is intended to be temporary and would expire in early 2029.

It’s not just Bryan County that’s affected. The bypass provision would apply to all projects seeking water from “coastal aquifers,” which the Georgia Association of Water Professionals says would include most of south Georgia.

The association joined conservation groups in opposing the local government bypass, as did the Georgia Municipal Association and the County Commissioners of Georgia Association.

The bill’s lead sponsor, Republican Rep. Ron Stephens of Savannah, has said that state restrictions on the amount of water Bryan County can withdraw from the Floridan aquifer, the region’s main drinking water source, are slowing construction of new homes needed to accommodate Hyundai’s homes. workforce.

Smith says Water Utility Management has the capacity to withdraw enough water to supply about 3,000 homes near the Hyundai plant, but is having difficulty getting approval from Bryan County.

In Bryan County, home to about 45,000 people, the county government is pursuing a $360 million expansion of its own water and sewer system to serve the plant and nearby homes. The expansion is expected to come online next year.

County officials who appeared before a Senate committee earlier this month did not outright oppose the bypass bill. But the engineer overseeing the county’s water expansion, Trent Thompson, suggested a private utility would be an unwanted competitor as the county seeks customers to repay $120 million in loans used to finance the project.

The fight to expand water supplies in Bryan County stems from restrictions the Georgia Environmental Protection Division imposed on Savannah-area counties in 2013 that limit how much water they can draw from Florida’s aquifer. The limits were imposed after scientists concluded that excessive pumping was drawing salt water into the aquifer.

Due to restrictions on Bryan County, four wells are being drilled in neighboring Bulloch County to supply the Hyundai plant with up to 50 million gallons of water daily.