Georgia lawmakers passed a bill that would allow a private utility to provide water service for new homes near Hyundai’s electric vehicle plant without requiring permission from local governments. The state Senate approved House Bill 1146 in a 32-22 vote on the final day of the legislative session, sending the measure to Governor Brian Kemp for signing. The bill aims to accelerate home construction in Bryan County, where Hyundai plans to employ 8,500 workers at its $7.6 billion EV plant near Savannah. Supporters say the county’s current water system cannot meet the increasing need for housing, prompting the need for a private water option.
Opponents of the bill argue that allowing private utilities to bypass city and county governments undermines their ability to manage limited water resources in Georgia’s coastal region. The Georgia Association of Water Professionals expressed concern that this change could avoid safe drinking water rules designed to protect consumers. Senator Frank Ginn, a former city and county manager, opposed the bill, stating that it could disrupt local planning for growth and development. The bill would allow private utility companies to provide water services without local government approval for projects requiring water from coastal aquifers.
Water Utility Management, a private company that supplies drinking water to homes across Georgia, supported passing the bill to expedite water service for new developments. The CEO, Mark Smith, stated that the bill would prevent counties from having veto power over private systems. While private utilities would still need permits from the Georgia Environmental Protection Division, they could bypass local governments until 2029. This provision could impact many projects seeking water from coastal aquifers in southern Georgia, leading to opposition from various associations and conservation groups.
The chief sponsor of the bill, Republican Rep. Ron Stephens of Savannah, argued that state-imposed limits on water withdrawal were hindering home construction in Bryan County to accommodate Hyundai’s workforce. Water Utility Management has the capacity to supply water to about 3,000 homes near the Hyundai plant but has struggled to gain approval from the county. Bryan County is currently pursuing a $360 million expansion of its water and sewer system to serve the plant and surrounding homes. While county officials did not outright oppose the bypass bill, concerns were raised about potential competition with a private utility as the county seeks customers to repay loans.
The battle over water service in Bryan County stems from restrictions placed by the Georgia Environmental Protection Division in 2013 on how much water could be withdrawn from the Floridan aquifer. Scientists had determined that excessive pumping was drawing saltwater into the aquifer, leading to restrictions on water withdrawal. To meet the water demands of the Hyundai plant, wells are being drilled in neighboring Bulloch County to supply up to 6.6 million gallons of water daily. The bill’s passage will allow for increased flexibility in providing water services for new developments in the area, with supporters citing the need to meet the housing requirements for Hyundai’s workforce and boost economic development in the region.
