(1) Upon receipt of an application for a permit under this part, the department shall submit copies of the application accompanied by a statement indicating that the department may act upon the application without a public hearing unless a written request is filed with the department within 20 days after the submission for review. The department shall submit copies of the application to all of the following:

  (a) The local unit of government where the project is to be located.

  (b) The adjacent riparian owners.

  (c) Any person considered appropriate by the department.

  (d) Any person who requests copies.

  (e) A watershed council, organized pursuant to part 311, of the watershed within which the project is located or is to be located.

  (2) The department may hold a public hearing upon the written request of any of the following:

  (a) An applicant.

  (b) A riparian owner.

  (c) A person or local unit of government that is entitled to receive a copy of the application pursuant to subsection (1).

  (3) A public hearing held pursuant to this section shall be held in compliance with the open meetings act, Act No. 267 of the Public Acts of 1976, being section 15.261 to 15.275 of the Michigan Compiled Laws. Public notice of the time, date, and place of the hearing shall be given in the manner provided by that act. Additionally, the department shall mail copies of the public notice to the persons who have requested the biweekly list pursuant to section 31510, the person requesting the hearing, and the persons and local units of government that are entitled to receive a copy of the application pursuant to subsection (1).