Florida Senate - 2017              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. SB 10
       
       
       
       
       
                               Ì601444ÅÎ601444                          
       
       576-02209-17                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on the Environment and Natural
       Resources)
    1                        A bill to be entitled                      
    2         An act relating to water resources; providing a short
    3         title; amending s. 201.15, F.S.; requiring that the
    4         debt service on certain bonds be paid first from
    5         amounts on deposit in the Land Acquisition Trust Fund;
    6         creating s. 215.613, F.S.; authorizing water resource
    7         protection and development bonds to be issued;
    8         providing a cap on such bonds; establishing certain
    9         covenants with regard to such bonds; specifying that
   10         the bonds do not constitute a general obligation of,
   11         or a pledge of the full faith and credit of, the state
   12         and are secured on a parity basis with certain other
   13         bonds; requiring the Department of Environmental
   14         Protection to distribute bond proceeds through the
   15         Land Acquisition Trust Fund; prohibiting certain
   16         property transactions and uses that would have
   17         specified tax impacts; specifying certain validation
   18         requirements; amending s. 215.618, F.S.; reducing the
   19         bonding authority for Florida Forever bonds; creating
   20         s. 373.4598, F.S.; providing legislative findings and
   21         intent; defining terms; requiring the South Florida
   22         Water Management District to seek proposals from
   23         willing sellers of property within the Everglades
   24         Agricultural Area for land that is suitable for the
   25         reservoir project; clarifying that all appraisal
   26         reports, offers, and counteroffers are confidential
   27         and exempt from public records requirements; requiring
   28         the district to assign the Entire Option Property Non
   29         Exclusive Option of a specified agreement to the Board
   30         of Trustees of the Internal Improvement Trust Fund
   31         under certain circumstances; requiring the district to
   32         retain the agreement’s option under certain
   33         circumstances; requiring the board or the district, as
   34         applicable, to exercise the specified option by a
   35         certain date under certain circumstances; providing
   36         requirements for the Proposed Option Property Purchase
   37         Price; authorizing the disposal or exchange of certain
   38         land or interests in land for certain purposes;
   39         requiring the district to begin, seek permitting for,
   40         and construct the reservoir project under certain
   41         circumstances; requiring the district, in coordination
   42         with the United States Army Corps of Engineers, to
   43         begin the planning study for the reservoir project by
   44         a specified date under certain circumstances;
   45         requiring the district to identify specified lands
   46         under certain circumstances; providing requirements
   47         for the planning study; requiring the district, in
   48         coordination with the United States Army Corps of
   49         Engineers, to seek Congressional authorization for the
   50         reservoir project under certain circumstances;
   51         authorizing certain costs to be funded using water
   52         resource protection and development bond proceeds
   53         under certain circumstances; specifying how such bond
   54         proceeds shall be deposited; authorizing the use of
   55         state funds for the reservoir project; requiring the
   56         district to seek additional sources of funding;
   57         requiring the district to seek federal credits under
   58         certain circumstances; requiring the district to
   59         request the United States Army Corps of Engineers, in
   60         the Corps’ review of the regulation schedule, to
   61         consider any repairs to the Herbert Hoover Dike or
   62         increase in southern outlet capacity of Lake
   63         Okeechobee; creating s. 373.475, F.S.; providing
   64         legislative findings and intent; requiring the
   65         department to distribute certain bond proceeds for the
   66         purposes of financing water resource protection and
   67         development projects; requiring proceeds to be
   68         expended in a fiscally responsible manner; creating s.
   69         373.478, F.S.; providing legislative findings and
   70         intent; defining terms; requiring the state through
   71         the department to provide certain funding assistance
   72         to local governments and water supply entities for the
   73         development and construction of water storage
   74         facilities; requiring the department to adopt rules;
   75         specifying required documentation for local government
   76         or water supply entities; specifying that recipients
   77         need not request certain advance payment; authorizing
   78         technical assistance; specifying certain loan funding
   79         maximums, minimums, and term requirements; requiring a
   80         report; authorizing certain audits and servicing fees;
   81         providing that the Water Protection and Sustainability
   82         Program Trust Fund shall be used to carry out the
   83         purposes of the revolving loan fund; specifying
   84         certain default and compliance provisions; amending s.
   85         375.041, F.S.; requiring certain distributions to be
   86         made from the Land Acquisition Trust Fund; amending s.
   87         375.041, F.S.; contingently increasing the minimum
   88         annual funding for certain Everglades projects;
   89         creating s. 403.0878, F.S.; requiring the department
   90         to establish a water reuse grant program; providing
   91         requirements for such program; requiring the
   92         department to adopt rules; requiring certain review of
   93         grants; authorizing a certain percentage of grant
   94         funds to be used for program administration;
   95         specifying that recipients need not request certain
   96         advance payment; providing legislative findings;
   97         amending s. 215.44, F.S.; requiring the Board of
   98         Administration to include a summary of potential water
   99         supply investments in its annual report to the
  100         Legislature; amending s. 403.890, F.S.; revising the
  101         purposes for which distributions may be made from and
  102         to the Water Protection and Sustainability Program
  103         Trust Fund; requiring the district and the board to
  104         notify the Division of Law Revision and Information by
  105         a certain date of specified land acquisitions;
  106         providing a directive to the division; providing
  107         contingent appropriations; providing effective dates,
  108         one of which is contingent.
  109          
  110  Be It Enacted by the Legislature of the State of Florida:
  111  
  112         Section 1. This act may be cited as the “Coast-to-Coast
  113  Comprehensive Water Resources Program.”
  114         Section 2. Section 201.15, Florida Statutes, is amended to
  115  read:
  116         201.15 Distribution of taxes collected.—All taxes collected
  117  under this chapter are hereby pledged and shall be first made
  118  available to make payments when due on bonds issued pursuant to
  119  s. 215.613, s. 215.618, or s. 215.619, or any other bonds
  120  authorized to be issued on a parity basis with such bonds. Such
  121  pledge and availability for the payment of these bonds shall
  122  have priority over any requirement for the payment of service
  123  charges or costs of collection and enforcement under this
  124  section. All taxes collected under this chapter, except taxes
  125  distributed to the Land Acquisition Trust Fund pursuant to
  126  subsections (1) and (2), are subject to the service charge
  127  imposed in s. 215.20(1). Before distribution pursuant to this
  128  section, the Department of Revenue shall deduct amounts
  129  necessary to pay the costs of the collection and enforcement of
  130  the tax levied by this chapter. The costs and service charge may
  131  not be levied against any portion of taxes pledged to debt
  132  service on bonds to the extent that the costs and service charge
  133  are required to pay any amounts relating to the bonds. All of
  134  the costs of the collection and enforcement of the tax levied by
  135  this chapter and the service charge shall be available and
  136  transferred to the extent necessary to pay debt service and any
  137  other amounts payable with respect to bonds authorized before
  138  January 1, 2017, secured by revenues distributed pursuant to
  139  this section. All taxes remaining after deduction of costs shall
  140  be distributed as follows:
  141         (1) Amounts necessary to make payments on bonds issued
  142  pursuant to s. 215.613, s. 215.618, or s. 215.619, as provided
  143  under paragraphs (3)(a), and (b), and (c) or on any other bonds
  144  authorized to be issued on a parity basis with such bonds shall
  145  be deposited into the Land Acquisition Trust Fund.
  146         (2) If the amounts deposited pursuant to subsection (1) are
  147  less than 33 percent of all taxes collected after first
  148  deducting the costs of collection, an amount equal to 33 percent
  149  of all taxes collected after first deducting the costs of
  150  collection, minus the amounts deposited pursuant to subsection
  151  (1), shall be deposited into the Land Acquisition Trust Fund.
  152         (3) Amounts on deposit in the Land Acquisition Trust Fund
  153  shall be used in the following order:
  154         (a) Payment of debt service or funding of debt service
  155  reserve funds, rebate obligations, or other amounts payable with
  156  respect to water resource protection and development bonds
  157  issued pursuant to s. 215.613. The amount used for such purposes
  158  may not exceed $300 million in each fiscal year.
  159         (b)(a) Payment of debt service or funding of debt service
  160  reserve funds, rebate obligations, or other amounts payable with
  161  respect to Florida Forever bonds issued pursuant to s. 215.618.
  162  The amount used for such purposes may not exceed $300 million in
  163  each fiscal year. It is the intent of the Legislature that all
  164  bonds issued to fund the Florida Forever Act be retired by
  165  December 31, 2040. Except for bonds issued to refund previously
  166  issued bonds, no series of bonds may be issued pursuant to this
  167  paragraph unless such bonds are approved and the debt service
  168  for the remainder of the fiscal year in which the bonds are
  169  issued is specifically appropriated in the General
  170  Appropriations Act.
  171         (c)(b) Payment of debt service or funding of debt service
  172  reserve funds, rebate obligations, or other amounts due with
  173  respect to Everglades restoration bonds issued pursuant to s.
  174  215.619. Taxes distributed under paragraph (a), paragraph (b),
  175  and this paragraph must be collectively distributed on a pro
  176  rata basis when the available moneys under this subsection are
  177  not sufficient to cover the amounts required under paragraph
  178  (a), paragraph (b), and this paragraph.
  179  
  180  Bonds issued pursuant to s. 215.613, s. 215.618, or s. 215.619
  181  are equally and ratably secured by moneys distributable to the
  182  Land Acquisition Trust Fund.
  183         (4) After the required distributions to the Land
  184  Acquisition Trust Fund pursuant to subsections (1) and (2) and
  185  deduction of the service charge imposed pursuant to s.
  186  215.20(1), the remainder shall be distributed as follows:
  187         (a) The lesser of 24.18442 percent of the remainder or
  188  $541.75 million in each fiscal year shall be paid into the State
  189  Treasury to the credit of the State Transportation Trust Fund.
  190  Of such funds, $75 million for each fiscal year shall be
  191  transferred to the State Economic Enhancement and Development
  192  Trust Fund within the Department of Economic Opportunity.
  193  Notwithstanding any other law, the remaining amount credited to
  194  the State Transportation Trust Fund shall be used for:
  195         1. Capital funding for the New Starts Transit Program,
  196  authorized by Title 49, U.S.C. s. 5309 and specified in s.
  197  341.051, in the amount of 10 percent of the funds;
  198         2. The Small County Outreach Program specified in s.
  199  339.2818, in the amount of 10 percent of the funds;
  200         3. The Strategic Intermodal System specified in ss. 339.61,
  201  339.62, 339.63, and 339.64, in the amount of 75 percent of the
  202  funds after deduction of the payments required pursuant to
  203  subparagraphs 1. and 2.; and
  204         4. The Transportation Regional Incentive Program specified
  205  in s. 339.2819, in the amount of 25 percent of the funds after
  206  deduction of the payments required pursuant to subparagraphs 1.
  207  and 2. The first $60 million of the funds allocated pursuant to
  208  this subparagraph shall be allocated annually to the Florida
  209  Rail Enterprise for the purposes established in s. 341.303(5).
  210         (b) The lesser of 0.1456 percent of the remainder or $3.25
  211  million in each fiscal year shall be paid into the State
  212  Treasury to the credit of the Grants and Donations Trust Fund in
  213  the Department of Economic Opportunity to fund technical
  214  assistance to local governments.
  215  
  216  Moneys distributed pursuant to paragraphs (a) and (b) may not be
  217  pledged for debt service unless such pledge is approved by
  218  referendum of the voters.
  219         (c) Eleven and twenty-four hundredths percent of the
  220  remainder in each fiscal year shall be paid into the State
  221  Treasury to the credit of the State Housing Trust Fund. Of such
  222  funds, the first $35 million shall be transferred annually,
  223  subject to any distribution required under subsection (5), to
  224  the State Economic Enhancement and Development Trust Fund within
  225  the Department of Economic Opportunity. The remainder shall be
  226  used as follows:
  227         1. Half of that amount shall be used for the purposes for
  228  which the State Housing Trust Fund was created and exists by
  229  law.
  230         2. Half of that amount shall be paid into the State
  231  Treasury to the credit of the Local Government Housing Trust
  232  Fund and used for the purposes for which the Local Government
  233  Housing Trust Fund was created and exists by law.
  234         (d) Twelve and ninety-three hundredths percent of the
  235  remainder in each fiscal year shall be paid into the State
  236  Treasury to the credit of the State Housing Trust Fund. Of such
  237  funds, the first $40 million shall be transferred annually,
  238  subject to any distribution required under subsection (5), to
  239  the State Economic Enhancement and Development Trust Fund within
  240  the Department of Economic Opportunity. The remainder shall be
  241  used as follows:
  242         1. Twelve and one-half percent of that amount shall be
  243  deposited into the State Housing Trust Fund and expended by the
  244  Department of Economic Opportunity and the Florida Housing
  245  Finance Corporation for the purposes for which the State Housing
  246  Trust Fund was created and exists by law.
  247         2. Eighty-seven and one-half percent of that amount shall
  248  be distributed to the Local Government Housing Trust Fund and
  249  used for the purposes for which the Local Government Housing
  250  Trust Fund was created and exists by law. Funds from this
  251  category may also be used to provide for state and local
  252  services to assist the homeless.
  253         (e) The lesser of 0.017 percent of the remainder or
  254  $300,000 in each fiscal year shall be paid into the State
  255  Treasury to the credit of the General Inspection Trust Fund to
  256  be used to fund oyster management and restoration programs as
  257  provided in s. 379.362(3).
  258         (5) Distributions to the State Housing Trust Fund pursuant
  259  to paragraphs (4)(c) and (d) must be sufficient to cover amounts
  260  required to be transferred to the Florida Affordable Housing
  261  Guarantee Program’s annual debt service reserve and guarantee
  262  fund pursuant to s. 420.5092(6)(a) and (b) up to the amount
  263  required to be transferred to such reserve and fund based on the
  264  percentage distribution of documentary stamp tax revenues to the
  265  State Housing Trust Fund which is in effect in the 2004-2005
  266  fiscal year.
  267         (6) After the distributions provided in the preceding
  268  subsections, any remaining taxes shall be paid into the State
  269  Treasury to the credit of the General Revenue Fund.
  270         Section 3. Section 215.613, Florida Statutes, is created to
  271  read:
  272         215.613 Bonds for water resource protection and
  273  development.—
  274         (1) The issuance of water resource protection and
  275  development bonds, not to exceed $3.3 billion, to finance or
  276  refinance the cost of acquisition and improvement of land, water
  277  areas, or related property interests for the purposes of water
  278  resource protection and development, and for capital
  279  improvements to land or water areas which facilitate water
  280  resource protection and development is authorized, subject to s.
  281  373.475 and pursuant to s. 11(e), Art. VII of the State
  282  Constitution. The $3.3 billion limitation on the issuance of
  283  water resource protection and development bonds does not apply
  284  to refunding bonds. The duration of each series of bonds issued
  285  may not exceed 20 annual maturities. No more than 58.25 percent
  286  of documentary stamp taxes collected may be taken into account
  287  for the purpose of satisfying an additional bonds test set forth
  288  in any authorizing resolution for bonds issued on or after July
  289  1, 2017.
  290         (2) The state covenants with the holders of water resource
  291  protection and development bonds that it will not take any
  292  action that will materially and adversely affect the rights of
  293  such holders so long as such bonds are outstanding, including,
  294  but not limited to, a reduction in the portion of documentary
  295  stamp taxes distributable to the Land Acquisition Trust Fund for
  296  payment of debt service on water resource protection and
  297  development bonds.
  298         (3) In accordance with s. 28, Art. X of the State
  299  Constitution, bonds issued pursuant to this section are payable
  300  from taxes distributable to the Land Acquisition Trust Fund
  301  pursuant to s. 201.15. Bonds issued pursuant to this section do
  302  not constitute a general obligation of, or a pledge of the full
  303  faith and credit of, the state. Water resource protection and
  304  development bonds are secured on a parity basis with Florida
  305  Forever bonds issued pursuant to s. 215.618 and Everglades
  306  restoration bonds issued pursuant to s. 215.619.
  307         (4) The Department of Environmental Protection shall
  308  request the Division of Bond Finance of the State Board of
  309  Administration to issue the bonds authorized by this section.
  310  The Division of Bond Finance shall issue such bonds pursuant to
  311  the State Bond Act.
  312         (5) The proceeds from the sale of bonds issued pursuant to
  313  this section, less the costs of issuance, the costs of funding
  314  reserve accounts, and other costs with respect to the bonds,
  315  shall be deposited into the Land Acquisition Trust Fund. The
  316  bond proceeds deposited into the Land Acquisition Trust Fund
  317  shall be distributed by the Department of Environmental
  318  Protection as provided in s. 373.475.
  319         (6) There may not be any sale, disposition, lease,
  320  easement, license, or other use of any land, water areas, or
  321  related property interests acquired or improved with proceeds of
  322  water resource protection and development bonds which would
  323  cause all or any portion of the interest of such bonds to lose
  324  the exclusion from gross income for federal income tax purposes.
  325         (7) The initial series of water resource protection and
  326  development bonds shall be validated in addition to any other
  327  bonds required to be validated pursuant to s. 215.82. Any
  328  complaint for validation of bonds issued pursuant to this
  329  section shall be filed only in the circuit court of the county
  330  where the seat of state government is situated, the notice
  331  required to be published by s. 75.06 shall be published only in
  332  the county where the complaint is filed, and the complaint and
  333  order of the circuit court shall be served only on the state
  334  attorney of the circuit in which the action is pending.
  335         Section 4. Paragraph (a) of subsection (1) of section
  336  215.618, Florida Statutes, is amended to read:
  337         215.618 Bonds for acquisition and improvement of land,
  338  water areas, and related property interests and resources.—
  339         (1)(a) The issuance of Florida Forever bonds, not to exceed
  340  $2 billion $5.3 billion, to finance or refinance the cost of
  341  acquisition and improvement of land, water areas, and related
  342  property interests and resources, in urban and rural settings,
  343  for the purposes of restoration, conservation, recreation, water
  344  resource development, or historical preservation, and for
  345  capital improvements to lands and water areas that accomplish
  346  environmental restoration, enhance public access and
  347  recreational enjoyment, promote long-term management goals, and
  348  facilitate water resource development is hereby authorized,
  349  subject to s. 259.105 and pursuant to s. 11(e), Art. VII of the
  350  State Constitution and, on or after July 1, 2015, to also
  351  finance or refinance the acquisition and improvement of land,
  352  water areas, and related property interests as provided in s.
  353  28, Art. X of the State Constitution. The $2 billion $5.3
  354  billion limitation on the issuance of Florida Forever bonds does
  355  not apply to refunding bonds. The duration of each series of
  356  Florida Forever bonds issued may not exceed 20 annual
  357  maturities. Not more than 58.25 percent of documentary stamp
  358  taxes collected may be taken into account for the purpose of
  359  satisfying an additional bonds test set forth in any authorizing
  360  resolution for bonds issued on or after July 1, 2015.
  361         Section 5. Section 373.4598, Florida Statutes, is created
  362  to read:
  363         373.4598Reservoir project in the Everglades Agricultural
  364  Area.—
  365         (1) LEGISLATIVE FINDINGS AND INTENT.—
  366         (a) The Legislature declares that an emergency exists
  367  regarding the St. Lucie and Caloosahatchee estuaries due to the
  368  harmful freshwater discharges east and west of the lake. Such
  369  discharges have manifested in widespread algae blooms, public
  370  health impacts, and extensive environmental harm to wildlife and
  371  the aquatic ecosystem. These conditions threaten the ecological
  372  integrity of the estuaries and the economic viability of the
  373  state and affected communities.
  374         (b) The Legislature finds that the acquisition of
  375  strategically located lands south of the lake and the
  376  construction of the reservoir project will increase the
  377  availability of water storage and reduce the harmful freshwater
  378  discharges. Additionally, water storage south of the lake will
  379  increase the availability of water for the Everglades and to
  380  meet irrigation demands for the Everglades Agricultural Area;
  381  restore the hydrological connection to the Everglades; and
  382  provide flood protection by reducing, through additional storage
  383  capacity, some of the demands on the Herbert Hoover Dike.
  384         (c) The Legislature recognizes that the reservoir project
  385  is authorized in the Water Resources Development Act of 2000 as
  386  a project component of CERP. Unless other funding is available,
  387  the Legislature directs the district in implementation of the
  388  reservoir project to abide by applicable state and federal law
  389  in order to do that which is required to obtain federal credit
  390  under the CERP. If the district implements the reservoir project
  391  as a project component as defined in s. 373.1501, the district
  392  must abide by all applicable state and federal law relating to
  393  such projects.
  394         (d)The Legislature finds that the rate of funding for the
  395  CERP must be increased if restoration will be achieved within
  396  the timeframes originally envisioned and that the delay in
  397  substantial progress toward completing critical elements of
  398  restoration, such as southern storage, will cause irreparable
  399  harm to natural systems and ultimately increase the cost of
  400  restoration. A substantial commitment to the advancement of
  401  projects identified as part of the CERP will reduce ongoing
  402  ecological damage to the St. Lucie and Caloosahatchee estuaries.
  403         (e) This section is not intended to diminish the
  404  commitments made by the state in chapter 2016-201, Laws of
  405  Florida.
  406         (2) DEFINITIONS.—As used in this section, the term:
  407         (a) “Agreement” means the Second Amended and Restated
  408  Agreement for Sale and Purchase between the United States Sugar
  409  Corporation, SBG Farms, Inc., Southern Garden Groves
  410  Corporation, and the South Florida Water Management District,
  411  dated August 12, 2010.
  412         (b) “Board” means the Board of Trustees of the Internal
  413  Improvement Trust Fund.
  414         (c) “Comprehensive Everglades Restoration Plan” or “CERP”
  415  has the same meaning as the term “comprehensive plan” as defined
  416  in s. 373.470.
  417         (d) “District” means the South Florida Water Management
  418  District.
  419         (e) “Everglades Agricultural Area” or “EAA” has the same
  420  meaning as defined in s. 373.4592.
  421         (f) “Lake” means Lake Okeechobee.
  422         (g)“Reservoir project” means a project to construct one or
  423  two above-ground reservoirs that have a total water storage
  424  capacity of approximately 360,000 acre-feet and are located in
  425  the EAA.
  426         (3) LAND ACQUISITION.—The Legislature declares that
  427  acquiring land for the reservoir project is in the public
  428  interest and that the governing board of the district and the
  429  board may acquire fee title for the purpose of implementing the
  430  reservoir project. However, the district may not exercise
  431  eminent domain for the purpose of implementing the reservoir
  432  project.
  433         (a) Upon the effective date of this act, the district shall
  434  seek proposals from willing sellers of property within the
  435  Everglades Agricultural Area in order to acquire approximately
  436  60,000 acres of land that is suitable for the reservoir project.
  437  All appraisal reports, offers, and counteroffers are
  438  confidential and exempt from s. 119.07(1), as provided in s.
  439  373.139.
  440         (b) If the district does not acquire land pursuant to
  441  paragraph (a) by December 31, 2017:
  442         1. The district must assign, by January 31, 2018, the
  443  agreement’s Entire Option Property Non-Exclusive Option to the
  444  board, as authorized in, and in accordance with, the agreement.
  445  If, for any reason, the Seller, as defined in the agreement,
  446  does not find the assignment to be reasonably acceptable in form
  447  and substance, the district must retain the Entire Option
  448  Property Non-Exclusive Option;
  449         2. The board or the district, whichever holds the option,
  450  must, by March 1, 2018, exercise the option in accordance with
  451  the agreement. The Buyer’s Proposed Option Property Purchase
  452  Price, as specified in the agreement, may not be less than the
  453  average of $7,400 per acre, unless the maximum offer allowed by
  454  law is less than the average of $7,400 per acre; and
  455         3. The board or the district, if applicable, may dispose of
  456  or exchange any land or lease interest in the land that is
  457  acquired pursuant to this paragraph in order to achieve optimal
  458  siting for the reservoir project or to dispose of land that is
  459  not necessary for the reservoir project. Any such exchange or
  460  disposition may not be in violation of the agreement.
  461         (4) DESIGN, PERMITTING, AND CONSTRUCTION.—If the district
  462  finds willing sellers of property pursuant to paragraph (3)(a),
  463  the district:
  464         (a) Once the land has been agreed upon for purchase, must
  465  immediately begin the reservoir project with the goal of
  466  providing adequate water storage and conveyance south of the
  467  lake to reduce the volume of regulatory discharges of water from
  468  the lake to the east and west;
  469         (b) Once the land is acquired, must expeditiously pursue
  470  necessary permitting and begin implementation and construction
  471  of the reservoir project as soon as practicable; and
  472         (c) The district shall give preferential consideration to
  473  the hiring of agricultural workers displaced as a result of the
  474  reservoir project, consistent with their qualifications and
  475  abilities, for the construction and operation of the reservoir
  476  project.
  477         (5) PLANNING STUDY.—
  478         (a) If land is acquired pursuant to paragraph (3)(a) and
  479  other funding is not available, the district must, in
  480  coordination with the United States Army Corps of Engineers,
  481  begin the planning study for the reservoir project by March 1,
  482  2018.
  483         (b) If land is not acquired pursuant to paragraph (3)(a) by
  484  December 31, 2017, the district must, in coordination with the
  485  United States Army Corps of Engineers, begin the planning study
  486  for the reservoir project by October 1, 2019.
  487         1. If land is acquired pursuant to paragraph (3)(b), the
  488  district must identify which of the acquired land is suitable
  489  for the reservoir project.
  490         2. If land is not acquired pursuant to paragraph (3)(b),
  491  the district must identify land that is suitable for the
  492  reservoir project and the best option for securing such land.
  493         (c) The district, when developing the planning study, must
  494  focus on the goal of the reservoir project, which is to provide
  495  adequate water storage and conveyance south of the lake to
  496  reduce the volume of regulatory discharges of water from the
  497  lake to the east and west.
  498         (d) Upon completion of the planning study and the
  499  finalization of the project implementation report, as defined in
  500  s. 373.470, the district, in coordination with the United States
  501  Army Corps of Engineers, shall seek Congressional authorization
  502  for the reservoir project.
  503         (6) FUNDING.—
  504         (a) Pursuant to s. 11(e), Art. VII of the State
  505  Constitution, up to $1.2 billion in state bonds are authorized
  506  under this section to finance or refinance the acquisition and
  507  improvement of land, water areas, and related property interests
  508  and resources for the purposes of conservation, outdoor
  509  recreation, water resource protection and development,
  510  restoration of natural systems, and historic preservation.
  511         (b) Any cost related to this section, including, but not
  512  limited to, the costs for land acquisition, planning,
  513  construction, and operation and maintenance, may be funded using
  514  proceeds from water resource protection and development bonds
  515  issued under s. 215.613.
  516         (c) The Legislature determines that the authorization and
  517  issuance of such bonds is in the best interest of the state and
  518  determines that the reservoir project should be implemented.
  519         (d)Notwithstanding any other provision of law, proceeds
  520  from the sale of such bonds, less the costs of issuance, the
  521  costs of funding reserve accounts, and other costs with respect
  522  to the bonds, shall be distributed in the following manner:
  523         1.If land is to be acquired pursuant to paragraph (3)(a),
  524  the amount of up to $800 million in bond proceeds in the 2017
  525  2018 fiscal year to the Land Acquisition Trust Fund for the
  526  purposes of this section, and the amount of up to $400 million
  527  in bond proceeds in the 2018-2019 fiscal year to the Land
  528  Acquisition Trust Fund for the purposes of this section; or
  529         2. If land is to be acquired pursuant to paragraph (3)(b),
  530  the amount of up to $1.2 billion in bond proceeds in the 2018
  531  2019 fiscal year to the Board of Trustees of the Internal
  532  Improvement Trust Fund, or the Land Acquisition Trust Fund, if
  533  applicable, to be used for the purposes of this section.
  534         (e) Notwithstanding s. 373.026(8)(b) or any other provision
  535  of law, the use of state funds is authorized for the reservoir
  536  project.
  537         (f) The district shall actively seek additional sources of
  538  funding, including federal funding, for the reservoir project.
  539         (g) If the reservoir project receives Congressional
  540  authorization, the district must seek applicable federal credits
  541  toward the state’s share of funding the land acquisition and
  542  implementation of the reservoir project.
  543         (7) LAKE OKEECHOBEE REGULATION SCHEDULE.—The district shall
  544  request that the United States Army Corps of Engineers pursue
  545  the reevaluation of the Lake Okeechobee Regulation Schedule as
  546  expeditiously as possible taking into consideration the repairs
  547  made to the Herbert Hoover Dike and any increase in outlet
  548  capacity south of the lake which offsets the harmful freshwater
  549  discharges to the St. Lucie and Caloosahatchee estuaries.
  550         Section 6. Section 373.475, Florida Statutes, is created to
  551  read:
  552         373.475 Water resource protection and development
  553  financing.—
  554         (1) The Legislature finds and declares that:
  555         (a) The continued alteration and development of the state’s
  556  natural and rural areas to accommodate the state’s growing
  557  population has contributed to the degradation of water
  558  resources.
  559         (b) The state’s groundwater, surface waters, and springs
  560  are under tremendous pressure due to population growth and
  561  economic expansion and require special protection and
  562  restoration efforts, including the protection of uplands and
  563  springsheds that provide vital recharge to aquifer systems and
  564  are critical to the protection of water quality and water
  565  quantity of the aquifers and springs.
  566         (c) To ensure that sufficient quantities of water are
  567  available to meet the current and future needs of the natural
  568  systems and citizens of the state and to help achieve the
  569  overall goals of the department and the water management
  570  districts, water resource protection and development projects
  571  and capital improvements to land or water areas that facilitate
  572  water resource protection and development are necessary.
  573         (d) Many of the state’s unique ecosystems, such as the
  574  Everglades, are facing ecological collapse due to the state’s
  575  burgeoning population growth and economic activities. To
  576  preserve these valuable ecosystems for future generations,
  577  essential parcels of land must be acquired and improvements to
  578  such lands must be made to facilitate ecosystem restoration.
  579         (e) The Legislature recognizes that the acquisition of
  580  lands in fee simple is only one way to achieve water resource
  581  goals. The Legislature encourages the use of alternatives to fee
  582  simple acquisition techniques and the development of
  583  partnerships between governmental agencies and private
  584  landowners.
  585         (f) There is a need to change the focus and direction of
  586  the state’s major land acquisition programs and to shift funding
  587  and bonding capabilities from land acquisition for conservation
  588  purposes towards land acquisition and improvements to land and
  589  water areas to protect, restore, and develop water resources.
  590         (g) Water resource protection and development projects are
  591  necessary to secure water resources to meet current and future
  592  water demands.
  593         (2) The department shall distribute bond proceeds from the
  594  Land Acquisition Trust Fund for the purposes of financing water
  595  resource protection and development projects, including projects
  596  pursuant to s. 373.4598.
  597         (3) Water resource protection and development bond proceeds
  598  shall be expended in a fiscally responsible manner. Any agency
  599  that receives bond proceeds pursuant to this section may not
  600  maintain a balance of unencumbered funds in its water resource
  601  protection and development subaccount beyond 3 fiscal years from
  602  the date of deposit of funds from each bond issue. All funds
  603  that have not been expended or encumbered after 3 fiscal years
  604  from the date of deposit shall be distributed by the Legislature
  605  during its next regular session for use in the water resource
  606  protection and development program.
  607         Section 7. Section 373.478, Florida Statutes, is created to
  608  read:
  609         373.478 Water storage facility revolving loan fund.—
  610         (1)(a) In recognition that waters of the state are among
  611  the state’s most basic resources, the Legislature declares that
  612  such waters should be managed to conserve and protect water
  613  resources and to realize the full beneficial use of such
  614  resources.
  615         (b) As natural storage within the system has been lost due
  616  to development, the Legislature finds that additional water
  617  storage, natural or man-made, is necessary to capture water and
  618  prevent water from being discharged to tide or otherwise lost to
  619  protect the waters of the state.
  620         (c) The Legislature finds that establishing infrastructure
  621  financing and providing technical assistance to local
  622  governments or water supply entities for water storage
  623  facilities is necessary to conserve and protect the waters of
  624  the state.
  625         (2) For purposes of this section, the term:
  626         (a) “Local governmental agency” means any municipality,
  627  county, district, or authority, or any agency thereof, or a
  628  combination of such acting jointly in connection with a project,
  629  having jurisdiction over a water storage facility.
  630         (b) “Water storage facilityor “facility” means all
  631  facilities, including land, necessary for surface or underground
  632  water storage. Such facilities may be publicly owned, privately
  633  owned, investor-owned, or cooperatively held.
  634         (3) The state through the department shall provide funding
  635  assistance to local governments or water supply entities for the
  636  development and construction of water storage facilities to
  637  increase the availability of sufficient water for all existing
  638  and future reasonable-beneficial uses and natural systems.
  639         (a) The department may make loans, provide loan guarantees,
  640  purchase loan insurance, and refinance local debt through the
  641  issue of new loans for water storage facilities approved by the
  642  department. Local governments or water supply entities may
  643  borrow funds made available pursuant to this section and may
  644  pledge any revenues or other adequate security available to them
  645  to repay any funds borrowed.
  646         (b) The department may award loan amounts for up to 75
  647  percent of the costs of planning, designing, constructing,
  648  upgrading, or replacing water resource infrastructure or
  649  facilities, whether natural or man-made, including the
  650  acquisition of real property for water storage facilities.
  651         (4) The department shall adopt rules to carry out the
  652  purposes of this section. Such rules shall:
  653         (a) Set forth a priority system for loans based on
  654  compliance with state requirements. The priority system shall
  655  give special consideration to:
  656         1. Projects that provide for the development of alternative
  657  water supply projects and management techniques in areas where
  658  existing source waters are limited or threatened by saltwater
  659  intrusion, excessive drawdowns, contamination, or other
  660  problems;
  661         2. Projects that contribute to the sustainability of
  662  regional water sources;
  663         3. Projects that produce additional water available for
  664  consumptive uses or natural systems;
  665         4. Projects that diversify water supply so that the needs
  666  of consumptive uses and the natural system are met during wet
  667  and dry conditions; or
  668         5. Projects that provide flexibility in addressing the
  669  unpredictability of water conditions from water year to water
  670  year.
  671         (b) Establish the requirements for the award and repayment
  672  of financial assistance.
  673         (c) Require evidence of credit worthiness and adequate
  674  security, including an identification of revenues to be pledged,
  675  and documentation of their sufficiency for loan repayment and
  676  pledged revenue coverage, to ensure that each loan recipient can
  677  meet its loan repayment requirements.
  678         (d) Require each project receiving financial assistance to
  679  be cost-effective, environmentally sound, and implementable.
  680         (e) Require each project to be self-supporting if the
  681  project is primarily for the purpose of water supply for
  682  consumptive use.
  683         (5) Before approval of a loan, the local government or
  684  water supply entity must, at a minimum, submit all of the
  685  following to the department:
  686         (a) A repayment schedule.
  687         (b) Evidence of the permittability or implementability of
  688  the facility proposed for financial assistance.
  689         (c) Plans and specifications, biddable contract documents,
  690  or other documentation of appropriate procurement of goods and
  691  services.
  692         (d) Provide assurance that records will be kept using
  693  generally accepted accounting principles and that the department
  694  or its agents and the Auditor General will have access to all
  695  records pertaining to the loan.
  696         (e) Document that the facility will be self-supporting, if
  697  such facility is required to be self-supporting according to
  698  paragraph (4)(e).
  699         (f) Document that the water management district whose
  700  boundaries in which the facility is planned has approved of such
  701  facility. If the facility crosses jurisdictional boundaries,
  702  approval from each applicable district must be provided to the
  703  department.
  704         (6) Recipients of financial assistance under this section
  705  may receive disbursements based upon invoiced costs and are not
  706  required to request advance payment pursuant to s. 216.181(16).
  707  Proof of payment of invoiced costs must be submitted before or
  708  concurrent with the recipient’s next disbursement request.
  709         (7) The department and water management districts are
  710  authorized to provide technical assistance to local governments
  711  or water supply entities for water storage facilities funded
  712  pursuant to this section.
  713         (8) In order to ensure that public moneys are managed in an
  714  equitable, prudent, and cost-effective manner, the total amount
  715  of money loaned to any local government or water supply entity
  716  during a fiscal year may not be more than 25 percent of the
  717  total funds available for making loans during that year. The
  718  minimum amount of a loan shall be $75,000. The term of loans
  719  made pursuant to this section may not exceed 30 years.
  720         (9) As part of the report required under s. 403.8532, the
  721  department shall prepare a report at the end of each fiscal
  722  year, detailing the financial assistance provided under this
  723  section, service fees collected, interest earned, and loans
  724  outstanding.
  725         (10) The department may conduct an audit of the loan
  726  project upon completion, or may require that a separate project
  727  audit, prepared by an independent certified public accountant,
  728  be submitted.
  729         (11) The department may require reasonable service fees on
  730  loans made to local governments or water supply entities to
  731  ensure that the program will be operated in perpetuity and to
  732  implement the purposes authorized under this section. Service
  733  fees may not be less than 2 percent or greater than 4 percent of
  734  the loan amount exclusive of the service fee. Service fee
  735  revenues shall be deposited into the department’s Grants and
  736  Donations Trust Fund. The fee revenues, and interest earnings
  737  thereon, shall be used exclusively to carry out the purposes of
  738  this section.
  739         (12) The Water Protection and Sustainability Program Trust
  740  Fund established under s. 403.891 shall be used to carry out the
  741  purposes of this section. Any funds that are not needed on an
  742  immediate basis for financial assistance shall be invested
  743  pursuant to s. 215.49. State funds and investment earnings shall
  744  be deposited into the fund. The principal and interest of all
  745  loans repaid and investment earnings thereon shall be deposited
  746  into the fund.
  747         (13)(a) If a local governmental agency defaults under the
  748  terms of its loan agreement, the department shall so certify to
  749  the Chief Financial Officer, who shall forward the amount
  750  delinquent to the department from any unobligated funds due to
  751  the local governmental agency under any revenue-sharing or tax
  752  sharing fund established by the state, except as otherwise
  753  provided by the State Constitution. Certification of delinquency
  754  does not limit the department from pursuing other remedies
  755  available for default on a loan, including accelerating loan
  756  repayments, eliminating all or part of the interest rate subsidy
  757  on the loan, and court appointment of a receiver to manage the
  758  public water system.
  759         (b) If a water storage facility owned by a person other
  760  than a local governmental agency defaults under the terms of its
  761  loan agreement, the department may take all actions available
  762  under law to remedy the default.
  763         (c) The department may impose a penalty for delinquent loan
  764  payments in the amount of 6 percent of the amount due, in
  765  addition to charging the cost to handle and process the debt.
  766  Penalty interest accrues on any amount due and payable beginning
  767  on the 30th day following the date upon which payment is due.
  768         (14) The department may terminate or rescind a financial
  769  assistance agreement when the recipient fails to comply with the
  770  terms and conditions of the agreement.
  771         Section 8. Subsections (1) and (3) of section 375.041,
  772  Florida Statutes, are amended to read:
  773         375.041 Land Acquisition Trust Fund.—
  774         (1) There is created a Land Acquisition Trust Fund within
  775  the Department of Environmental Protection. The Land Acquisition
  776  Trust Fund is designated by s. 28, Art. X of the State
  777  Constitution for receipt of certain documentary stamp tax
  778  revenue for the uses prescribed therein. The Land Acquisition
  779  Trust Fund shall be held and administered by the department. The
  780  Land Acquisition Trust Fund shall continue for as long as bonds
  781  are outstanding pursuant to s. 215.613, s. 215.618, or s.
  782  215.619, or any bonds secured on a parity basis with such bonds,
  783  or until the requirement of s. 28, Art. X of the State
  784  Constitution expires, whichever is later. All moneys deposited
  785  into the Land Acquisition Trust Fund shall be trust funds for
  786  the uses and purposes herein set forth, within the meaning of s.
  787  215.32(1)(b); and such moneys shall not become or be commingled
  788  with the General Revenue Fund of the state, as defined by s.
  789  215.32(1)(a).
  790         (3) Funds distributed into the Land Acquisition Trust Fund
  791  pursuant to s. 201.15 shall be applied:
  792         (a) First, to pay debt service or to fund debt service
  793  reserve funds, rebate obligations, or other amounts payable with
  794  respect to water resource protection and development bonds
  795  issued under s. 215.613; pay debt service or to fund debt
  796  service reserve funds, rebate obligations, or other amounts
  797  payable with respect to Florida Forever bonds issued under s.
  798  215.618; and pay debt service, provide reserves, and pay rebate
  799  obligations and other amounts due with respect to Everglades
  800  restoration bonds issued under s. 215.619; and
  801         (b) Of the funds remaining after the payments required
  802  under paragraph (a), but before funds may be appropriated,
  803  pledged, or dedicated for other uses:
  804         1. A minimum of the lesser of 25 percent or $200 million
  805  shall be appropriated annually for Everglades projects that
  806  implement the Comprehensive Everglades Restoration Plan as set
  807  forth in s. 373.470, including the Central Everglades Planning
  808  Project subject to Congressional authorization; the Long-Term
  809  Plan as defined in s. 373.4592(2); and the Northern Everglades
  810  and Estuaries Protection Program as set forth in s. 373.4595.
  811  From these funds, $32 million shall be distributed each fiscal
  812  year through the 2023-2024 fiscal year to the South Florida
  813  Water Management District for the Long-Term Plan as defined in
  814  s. 373.4592(2). After deducting the $32 million distributed
  815  under this subparagraph, from the funds remaining, a minimum of
  816  the lesser of 76.5 percent or $100 million shall be appropriated
  817  each fiscal year through the 2025-2026 fiscal year for the
  818  planning, design, engineering, and construction of the
  819  Comprehensive Everglades Restoration Plan as set forth in s.
  820  373.470, including the Central Everglades Planning Project, the
  821  Everglades Agricultural Area Storage Reservoir Project, the Lake
  822  Okeechobee Watershed Project, the C-43 West Basin Storage
  823  Reservoir Project, the C-44 Reservoir Project, the Western
  824  Everglades Restoration Project, the C-111 South-Dade Project,
  825  and the Picayune Strand Restoration Project subject to
  826  Congressional authorization. The Department of Environmental
  827  Protection and the South Florida Water Management District shall
  828  give preference to those Everglades restoration projects that
  829  reduce harmful discharges of water from Lake Okeechobee to the
  830  St. Lucie or Caloosahatchee estuaries in a timely manner. For
  831  the purpose of performing the calculation provided in this
  832  subparagraph, the amount of debt service paid pursuant to
  833  paragraph (a) for bonds issued after July 1, 2016, for the
  834  purposes set forth under paragraph (b) shall be added to the
  835  amount remaining after the payments required under paragraph
  836  (a). The amount of the distribution calculated shall then be
  837  reduced by an amount equal to the debt service paid pursuant to
  838  paragraph (a) on bonds issued after July 1, 2016, for the
  839  purposes set forth under this subparagraph.
  840         2. A minimum of the lesser of 7.6 percent or $50 million
  841  shall be appropriated annually for spring restoration,
  842  protection, and management projects. For the purpose of
  843  performing the calculation provided in this subparagraph, the
  844  amount of debt service paid pursuant to paragraph (a) for bonds
  845  issued after July 1, 2016, for the purposes set forth under
  846  paragraph (b) shall be added to the amount remaining after the
  847  payments required under paragraph (a). The amount of the
  848  distribution calculated shall then be reduced by an amount equal
  849  to the debt service paid pursuant to paragraph (a) on bonds
  850  issued after July 1, 2016, for the purposes set forth under this
  851  subparagraph.
  852         3. The sum of $5 million shall be appropriated annually
  853  each fiscal year through the 2025-2026 fiscal year to the St.
  854  Johns River Water Management District for projects dedicated to
  855  the restoration of Lake Apopka. This distribution shall be
  856  reduced by an amount equal to the debt service paid pursuant to
  857  paragraph (a) on bonds issued after July 1, 2016, for the
  858  purposes set forth in this subparagraph.
  859         4. The sum of $35 million shall be appropriated annually to
  860  the St. Johns River Water Management District for projects
  861  dedicated to the restoration of the St. Johns River and its
  862  tributaries or the Keystone Heights Lake Region. Such funds may
  863  be used for land management and acquisition and for recreational
  864  opportunity and public access improvements connected with these
  865  areas. This distribution shall be reduced by an amount equal to
  866  the debt service paid pursuant to paragraph (a) on bonds issued
  867  after July 1, 2017, for the purposes set forth in this
  868  subparagraph.
  869         5. The sum of $2 million shall be appropriated annually to
  870  the Department of Environmental Protection to be distributed in
  871  accordance with the existing interlocal agreement among the
  872  Village of Islamorada, the Key Largo Wastewater Treatment
  873  District, the City of Marathon, the Monroe County/Florida Keys
  874  Aqueduct Authority, the City of Key West, and Key Colony Beach,
  875  to address water quality issues and for the purposes of
  876  constructing sewage collection, treatment, and disposal
  877  facilities; implementing stormwater collection and treatment
  878  systems; canal restoration and muck remediation projects; and
  879  projects that protect and enhance water supply in the Florida
  880  Keys Area of Critical State Concern and the City of Key West
  881  Area of Critical State Concern; or, for the purposes of land
  882  acquisition within the Florida Keys Area of Critical Concern as
  883  authorized pursuant to s. 259.045 with increased priority given
  884  to those acquisitions that achieve a combination of conservation
  885  goals, including protecting Florida’s water resources and
  886  natural groundwater recharge. A local government requesting
  887  disbursement pursuant to this appropriation shall provide the
  888  Department of Environmental Protection with such documentation
  889  as the department deems necessary to verify that the costs are
  890  properly incurred and work has been performed.
  891         6.A sum of $20 million shall be appropriated annually to
  892  offset or partially offset property owner costs incurred to
  893  retrofit onsite sewage treatment and disposal systems determined
  894  by the Department of Environmental Protection to be individually
  895  or collectively contributing excess nutrient pollution in the
  896  counties contributing to the Indian River Lagoon, the St. Lucie
  897  and Caloosahatchee estuaries, and their watersheds; to connect
  898  properties with such onsite systems to central sewer systems; or
  899  to conduct muck dredging and large-scale stormwater improvements
  900  in counties contributing to the Indian River Lagoon, the St.
  901  Lucie and Caloosahatchee estuaries, and their watersheds. The
  902  Department of Environmental Protection is authorized to use the
  903  appropriated funds to make grants or provide other forms of
  904  financial assistance to local governments and other entities for
  905  these purposes.
  906         Section 9. Effective January 1, 2019, and contingent upon
  907  the failure of the district or board to acquire land by November
  908  30, 2018, pursuant to section 373.4598(3)(a) or (b), Florida
  909  Statutes, subsection (3) of section 375.041, Florida Statutes,
  910  as amended by this act, is amended to read:
  911         375.041 Land Acquisition Trust Fund.—
  912         (3) Funds distributed into the Land Acquisition Trust Fund
  913  pursuant to s. 201.15 shall be applied:
  914         (a) First, to pay debt service or to fund debt service
  915  reserve funds, rebate obligations, or other amounts payable with
  916  respect to water resource protection and development bonds
  917  issued under s. 215.613; pay debt service or to fund debt
  918  service reserve funds, rebate obligations, or other amounts
  919  payable with respect to Florida Forever bonds issued under s.
  920  215.618; and pay debt service, provide reserves, and pay rebate
  921  obligations and other amounts due with respect to Everglades
  922  restoration bonds issued under s. 215.619; and
  923         (b) Of the funds remaining after the payments required
  924  under paragraph (a), but before funds may be appropriated,
  925  pledged, or dedicated for other uses:
  926         1. A minimum of the lesser of 30 25 percent or $250 $200
  927  million shall be appropriated annually for Everglades projects
  928  that implement the Comprehensive Everglades Restoration Plan as
  929  set forth in s. 373.470, including the Central Everglades
  930  Planning Project subject to Congressional authorization; the
  931  Long-Term Plan as defined in s. 373.4592(2); and the Northern
  932  Everglades and Estuaries Protection Program as set forth in s.
  933  373.4595. From these funds, $32 million shall be distributed
  934  each fiscal year through the 2023-2024 fiscal year to the South
  935  Florida Water Management District for the Long-Term Plan as
  936  defined in s. 373.4592(2). After deducting the $32 million
  937  distributed under this subparagraph, from the funds remaining, a
  938  minimum of the lesser of 80 76.5 percent or $150 $100 million
  939  shall be appropriated each fiscal year through the 2025-2026
  940  fiscal year for the planning, design, engineering, and
  941  construction of the Comprehensive Everglades Restoration Plan as
  942  set forth in s. 373.470, including the Central Everglades
  943  Planning Project, the Everglades Agricultural Area Storage
  944  Reservoir Project, the Lake Okeechobee Watershed Project, the C
  945  43 West Basin Storage Reservoir Project, the C-44 Reservoir
  946  Project, the Western Everglades Restoration Project, the C-111
  947  South-Dade Project, and the Picayune Strand Restoration Project.
  948  The Department of Environmental Protection and the South Florida
  949  Water Management District shall give preference to those
  950  Everglades restoration projects that reduce harmful discharges
  951  of water from Lake Okeechobee to the St. Lucie or Caloosahatchee
  952  estuaries in a timely manner. For the purpose of performing the
  953  calculation provided in this subparagraph, the amount of debt
  954  service paid pursuant to paragraph (a) for bonds issued after
  955  July 1, 2016, for the purposes set forth under paragraph (b)
  956  shall be added to the amount remaining after the payments
  957  required under paragraph (a). The amount of the distribution
  958  calculated shall then be reduced by an amount equal to the debt
  959  service paid pursuant to paragraph (a) on bonds issued after
  960  July 1, 2016, for the purposes set forth under this
  961  subparagraph.
  962         2. A minimum of the lesser of 7.6 percent or $50 million
  963  shall be appropriated annually for spring restoration,
  964  protection, and management projects. For the purpose of
  965  performing the calculation provided in this subparagraph, the
  966  amount of debt service paid pursuant to paragraph (a) for bonds
  967  issued after July 1, 2016, for the purposes set forth under
  968  paragraph (b) shall be added to the amount remaining after the
  969  payments required under paragraph (a). The amount of the
  970  distribution calculated shall then be reduced by an amount equal
  971  to the debt service paid pursuant to paragraph (a) on bonds
  972  issued after July 1, 2016, for the purposes set forth under this
  973  subparagraph.
  974         3. The sum of $5 million shall be appropriated annually
  975  each fiscal year through the 2025-2026 fiscal year to the St.
  976  Johns River Water Management District for projects dedicated to
  977  the restoration of Lake Apopka. This distribution shall be
  978  reduced by an amount equal to the debt service paid pursuant to
  979  paragraph (a) on bonds issued after July 1, 2016, for the
  980  purposes set forth in this subparagraph.
  981         4. The sum of $35 million shall be appropriated annually to
  982  the St. Johns River Water Management District for projects
  983  dedicated to the restoration of the St. Johns River and its
  984  tributaries or the Keystone Heights Lake Region. Such funds may
  985  be used for land management and acquisition and for recreational
  986  opportunity and public access improvements connected with these
  987  areas. This distribution shall be reduced by an amount equal to
  988  the debt service paid pursuant to paragraph (a) on bonds issued
  989  after July 1, 2017, for the purposes set forth in this
  990  subparagraph.
  991         5. The sum of $2 million shall be appropriated annually to
  992  the Department of Environmental Protection to be distributed in
  993  accordance with the existing interlocal agreement among the
  994  Village of Islamorada, the Key Largo Wastewater Treatment
  995  District, the City of Marathon, the Monroe County/Florida Keys
  996  Aqueduct Authority, the City of Key West, and Key Colony Beach,
  997  to address water quality issues and for the purposes of
  998  constructing sewage collection, treatment, and disposal
  999  facilities; implementing stormwater collection and treatment
 1000  systems; canal restoration and muck remediation projects; and
 1001  projects that protect and enhance water supply in the Florida
 1002  Keys Area of Critical State Concern and the City of Key West
 1003  Area of Critical State Concern; or, for the purposes of land
 1004  acquisition within the Florida Keys Area of Critical Concern as
 1005  authorized pursuant to s. 259.045 with increased priority given
 1006  to those acquisitions that achieve a combination of conservation
 1007  goals, including protecting Florida’s water resources and
 1008  natural groundwater recharge. A local government requesting
 1009  disbursement pursuant to this appropriation shall provide the
 1010  Department of Environmental Protection with such documentation
 1011  as the department deems necessary to verify that the costs are
 1012  properly incurred and work has been performed.
 1013         6. A sum of $20 million shall be appropriated annually to
 1014  offset or partially offset property owner costs incurred to
 1015  retrofit onsite sewage treatment and disposal systems determined
 1016  by the Department of Environmental Protection to be individually
 1017  or collectively contributing excess nutrient pollution in the
 1018  counties contributing to the Indian River Lagoon, the St. Lucie
 1019  and Caloosahatchee estuaries, and their watersheds; to connect
 1020  properties with such onsite systems to central sewer systems; or
 1021  to conduct muck dredging and large-scale stormwater improvements
 1022  in counties contributing to the Indian River Lagoon, the St.
 1023  Lucie and Caloosahatchee estuaries, and their watersheds. The
 1024  Department of Environmental Protection is authorized to use the
 1025  appropriated funds to make grants or provide other forms of
 1026  financial assistance to local governments and other entities for
 1027  these purposes.
 1028         Section 10. Section 403.0878, Florida Statutes, is created
 1029  to read:
 1030         403.0878 Water reuse grant program.—The department shall
 1031  establish a water reuse grant program. The department shall use
 1032  funds specifically appropriated to award grants under this
 1033  section to assist wastewater treatment facilities to expand the
 1034  facilities’ capacity to make reclaimed water available for
 1035  reuse.
 1036         (1) In accordance with rules adopted by the department
 1037  pursuant to this section, the department may provide grants,
 1038  from funds specifically appropriated for this purpose, to
 1039  wastewater facilities for up to 100 percent of the costs of
 1040  planning, designing, constructing, upgrading, or replacing
 1041  wastewater collection, transmission, and treatment designed to
 1042  expand the facility’s capacity to make reclaimed water available
 1043  for reuse.
 1044         (2)The department’s rules must:
 1045         (a)Require that projects to plan, design, construct,
 1046  upgrade, or replace wastewater collection, transmission,
 1047  treatment, and reuse facilities be cost-effective,
 1048  environmentally sound, permittable, and implementable.
 1049         (b)Require grant applications to be submitted on
 1050  appropriate forms with appropriate supporting documentation, and
 1051  require records to be maintained.
 1052         (c)Establish a system to determine eligibility of grant
 1053  applications.
 1054         (d)Establish a system to determine the relative priority
 1055  of grant applications. The system must consider public health
 1056  protection and water pollution abatement.
 1057         (e)Establish requirements for competitive procurement of
 1058  engineering and construction services, materials, and equipment.
 1059         (f)Provide for termination of grants when program
 1060  requirements are not met.
 1061         (3)The department must perform adequate overview of each
 1062  awarded grant, including technical review, regular inspections,
 1063  disbursement approvals, and auditing, to successfully implement
 1064  this section.
 1065         (4)The department may use up to 2 percent of the grant
 1066  funds made available each year for the costs of program
 1067  administration.
 1068         (5)Recipients of financial assistance under this section
 1069  may receive disbursements based upon invoiced costs and are not
 1070  required to request advance payment pursuant to s. 216.181(16).
 1071  Proof of payment of invoiced costs shall be submitted before or
 1072  concurrent with the recipient’s next disbursement request.
 1073         Section 11. The Legislature finds that sufficient water
 1074  availability is a paramount concern for existing and future
 1075  reasonable-beneficial uses and natural systems in this state.
 1076  The projected population of this state is estimated to exceed 25
 1077  million by the year 2040, and cooperative efforts between
 1078  municipalities, counties, utility companies, private landowners,
 1079  water consumers, water management districts, regional water
 1080  supply authorities, the Department of Environmental Protection,
 1081  and the Department of Agriculture and Consumer Services are
 1082  necessary in order to meet water needs in a manner that will
 1083  supply adequate and dependable supplies of water where needed
 1084  without causing adverse effects in the area from which water is
 1085  withdrawn. Water supply projects should employ all practical
 1086  means of obtaining water, including, but not limited to,
 1087  withdrawals of surface water and groundwater, reclaimed water,
 1088  and desalination, and properly implementing these projects will
 1089  require cooperation and well-coordinated activities. Therefore,
 1090  it is the policy of this state that projects to increase water
 1091  supply be planned on a regional basis.
 1092         Section 12. Present paragraph (f) of subsection (5) of
 1093  section 215.44, Florida Statutes, is redesignated as paragraph
 1094  (g), and a new paragraph (f) is added to that subsection, to
 1095  read:
 1096         215.44 Board of Administration; powers and duties in
 1097  relation to investment of trust funds.—
 1098         (5) On or before January 1 of each year, the board shall
 1099  provide to the Legislature a report including the following
 1100  items for each fund which, by law, has been entrusted to the
 1101  board for investment:
 1102         (f) A summary of the type and amount of potential water
 1103  supply investments that will have the effect of increasing water
 1104  supply in the state on a regional basis.
 1105         Section 13. Section 403.890, Florida Statutes, is amended
 1106  to read:
 1107         403.890 Water Protection and Sustainability Program.—
 1108         (1) Revenues deposited into or appropriated to the Water
 1109  Protection and Sustainability Program Trust Fund shall be
 1110  distributed by the Department of Environmental Protection for
 1111  the following purposes in the following manner:
 1112         (a)(1) Sixty-five percent to the Department of
 1113  Environmental Protection for The implementation of an
 1114  alternative water supply program as provided in s. 373.707.
 1115         (b) The water storage facility revolving loan fund as
 1116  provided in s. 373.478.
 1117         (2) Revenues deposited into or appropriated to the Water
 1118  Protection and Sustainability Program Trust Fund for purposes of
 1119  the water storage facility revolving loan fund may only be used
 1120  for such purposes.
 1121         (2) Twenty-two and five-tenths percent for the
 1122  implementation of best management practices and capital project
 1123  expenditures necessary for the implementation of the goals of
 1124  the total maximum daily load program established in s. 403.067.
 1125  Of these funds, 83.33 percent shall be transferred to the credit
 1126  of the Department of Environmental Protection Water Quality
 1127  Assurance Trust Fund to address water quality impacts associated
 1128  with nonagricultural nonpoint sources. Sixteen and sixty-seven
 1129  hundredths percent of these funds shall be transferred to the
 1130  Department of Agriculture and Consumer Services General
 1131  Inspection Trust Fund to address water quality impacts
 1132  associated with agricultural nonpoint sources. These funds shall
 1133  be used for research, development, demonstration, and
 1134  implementation of the total maximum daily load program under s.
 1135  403.067, suitable best management practices or other measures
 1136  used to achieve water quality standards in surface waters and
 1137  water segments identified pursuant to s. 303(d) of the Clean
 1138  Water Act, Pub. L. No. 92-500, 33 U.S.C. ss. 1251 et seq.
 1139  Implementation of best management practices and other measures
 1140  may include cost-share grants, technical assistance,
 1141  implementation tracking, and conservation leases or other
 1142  agreements for water quality improvement. The Department of
 1143  Environmental Protection and the Department of Agriculture and
 1144  Consumer Services may adopt rules governing the distribution of
 1145  funds for implementation of capital projects, best management
 1146  practices, and other measures. These funds shall not be used to
 1147  abrogate the financial responsibility of those point and
 1148  nonpoint sources that have contributed to the degradation of
 1149  water or land areas. Increased priority shall be given by the
 1150  department and the water management district governing boards to
 1151  those projects that have secured a cost-sharing agreement
 1152  allocating responsibility for the cleanup of point and nonpoint
 1153  sources.
 1154         (3) Twelve and five-tenths percent to the Department of
 1155  Environmental Protection for the Disadvantaged Small Community
 1156  Wastewater Grant Program as provided in s. 403.1838.
 1157         (3)(4) On June 30, 2009, and every 24 months thereafter,
 1158  the Department of Environmental Protection shall request the
 1159  return of all unencumbered funds distributed for the purposes of
 1160  the alternative water supply program pursuant to this section.
 1161  These funds shall be deposited into the Water Protection and
 1162  Sustainability Program Trust Fund and redistributed for such
 1163  purposes pursuant to the provisions of this section.
 1164         Section 14. The South Florida Water Management District and
 1165  the Board of Trustees of the Internal Improvement Trust Fund
 1166  shall notify the Division of Law Revision and Information no
 1167  later than December 1, 2018, whether they have acquired land
 1168  pursuant to s. 373.4598, Florida Statutes.
 1169         Section 15. The Division of Law Revision and Information is
 1170  directed to replace the phrase “the effective date of this act”
 1171  wherever it occurs in this act with the date the act becomes a
 1172  law.
 1173         Section 16. Contingent upon bonds being issued for the
 1174  purposes of s. 373.4598, Florida Statutes, and if land is
 1175  acquired pursuant to s. 373.4598(3)(a), Florida Statutes, the
 1176  sum of $64 million in recurring funds from the Land Acquisition
 1177  Trust Fund is appropriated for the 2017-2018 fiscal year to pay
 1178  debt service on bonds that implement this act and are issued
 1179  pursuant to s. 215.613, Florida Statutes.
 1180         Section 17. Contingent upon bonds being issued for the
 1181  purposes of s. 373.4598, Florida Statutes, and if land is
 1182  acquired pursuant to s. 373.4598(3)(a), Florida Statutes, the
 1183  sum of $36 million in recurring funds from the Land Acquisition
 1184  Trust Fund is appropriated for the 2018-2019 fiscal year to pay
 1185  debt service on bonds that implement this act and are issued
 1186  pursuant to s. 215.613, Florida Statutes.
 1187         Section 18. Contingent upon bonds being issued for the
 1188  purposes of s. 373.4598, Florida Statutes, and if land is
 1189  acquired pursuant to s. 373.4598(3)(b), Florida Statutes, the
 1190  sum of $100 million in recurring funds from the Land Acquisition
 1191  Trust Fund is appropriated for the 2018-2019 fiscal year to pay
 1192  debt service on bonds that implement this act and are issued
 1193  pursuant to s. 215.613, Florida Statutes.
 1194         Section 19. Except as otherwise expressly provided in this
 1195  act, this act shall take effect upon becoming a law.
 1196