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Foxconn in Choppy Waters Over Plan to Drain the Great Lakes

The approval of a new factory just outside the Great Lakes Basin could mark the beginning of a manufacturing revitalization that relies on draining millions of gallons of water from the lakes. It’s what Wisconsin’s government hopes for — and environmentalists fear.If given the go-ahead by Wisconsin’s Department of Natural Resources, electronics manufacturer Foxconn Technology Group, which is based in Taiwan, would make liquid crystal displays, more commonly known as LCDs, in a factory just outside Racine, Wisconsin.Wisconsin courted Foxconn hard. The state offered $3 billion in incentives and exempted the plant from the state’s wetlands regulations and an environmental impact review. In luring Foxconn, Wisconsin beat out many of its Great Lakes neighbors — Michigan, Illinois, Indiana, Ohio and Pennsylvania also vied for the plant. The company has pledged to hire 3,000 people in Republican House Speaker Paul Ryan’s district in a largely rural part of the state with a struggling economy. But the company needs more than just a wealth of manufacturing workers. Making LCD panels also requires large volumes of clean water: The plant is seeking approval through Racine’s water utility to drain 7 million gallons a day from Lake Michigan.But other Great Lakes states are questioning the legality of the deal, and some environmentalists say it could create a slippery slope that will allow other outside interests to tap into lakes.Environmentalists object to Wisconsin leaders allowing Foxconn to skirt some environmental regulations, and they worry Racine’s wastewater treatment center won’t be able to treat all the pollution from the plant before releasing the water back into Lake Michigan.

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Pew Charitable Trust