Senate Bill 1006c1

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    Florida Senate - 1998                           CS for SB 1006

    By the Committee on Natural Resources





    312-2001-98

  1                      A bill to be entitled

  2         An act relating to water quality; directing the

  3         Department of Health to conduct a study to

  4         identify the role of onsite sewage treatment

  5         and disposal systems on water quality;

  6         providing for a report; requiring the

  7         Department of Environmental Protection to adopt

  8         rules for determining which waters are

  9         nutrient-impaired; providing criteria for

10         rulemaking; amending s. 403.1835, F.S.;

11         providing a priority for funding from the

12         sewage treatment facilities revolving loan

13         program for facilities located within the

14         geographic area encompassed by a plan adopted

15         pursuant to s. 373.456, F.S.; providing that

16         the sewage treatment facilities revolving loan

17         program is to be self-perpetuating; authorizing

18         the Department of Environmental Protection to

19         sell or pledge loans from the Sewage Treatment

20         Revolving Loan Fund, with approval from the

21         Board of Administration; providing for the

22         employment of experts; providing for the use

23         and deposit of proceeds from the sale of loans;

24         amending s. 403.804, F.S.; providing for

25         calculating maximum load for certain

26         constituents for a specific watercourse and

27         water body; requiring the Secretary of

28         Environmental Protection to approve the maximum

29         load calculation after notice of agency action

30         pursuant to ch. 120, F.S., and limiting the

31         point of entry for a challenge to the

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1         calculation; authorizing the department to

  2         adopt rules establishing procedures for

  3         pollutant trading in areas where a maximum load

  4         calculation has been approved; creating s.

  5         514.095, F.S.; authorizing the Department of

  6         Health to adopt rules for bacteriological

  7         sampling of beach waters and issue health

  8         advisories; providing an effective date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  The research review and advisory committee

13  established pursuant to section 381.0065(4)(n), Florida

14  Statutes, shall undertake a study to identify the role of

15  onsite sewage treatment and disposal systems in causing water

16  quality problems. The study will identify areas of the state

17  which have impaired water quality and need corrective actions

18  to avoid further deterioration in water quality conditions.

19  The Department of Health's Technical Review and Advisory

20  Committee shall approve the parameters of the study and

21  provide advice on the scope of the study, with input from the

22  Department of Environmental Protection and the Department of

23  Health. The departments shall provide the necessary staff and

24  support for the study. A final report and recommendations for

25  corrective actions and implementing legislation shall be

26  submitted to the Governor, President of the Senate, and

27  Speaker of the House of Representatives by January 15, 1999.

28         Section 2.  Section 403.0863, Florida Statutes, is

29  created to read:

30         403.0863  Determination of nutrient-impaired

31  waters.--The Department of Environmental Protection shall

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  adopt by rule procedures for determining which waters are

  2  nutrient-impaired. For purposes of this chapter, nutrient

  3  impairment shall be established using the following criteria,

  4  at a minimum:

  5         (1)  Excessive levels of chlorophyll-a as determined by

  6  methods established in department rule;

  7         (2)  Excessive algal growth potential as determined by

  8  methods established in department rule;

  9         (3)  Nutrient concentrations at levels that cause an

10  imbalance in natural populations of aquatic flora or fauna; or

11         (4)  A high trophic state index, as determined by

12  methods established in department rule, which is indicative of

13  eutrophic conditions.

14         Section 3.  Subsections (1), (3), (7), (9), and (10) of

15  section 403.1835, Florida Statutes, are amended to read:

16         403.1835  Sewage treatment facilities revolving loan

17  program.--

18         (1)  The purpose of this section is to assist in

19  implementing the legislative declaration of public policy as

20  contained in s. 403.021 by establishing a self-perpetuating

21  loan program to accelerate construction of sewage treatment

22  facilities by local governmental agencies and to assist local

23  governmental agencies.

24         (3)  The department is authorized to make loans and

25  grants to local governmental agencies to assist them in

26  planning, designing, and constructing sewage treatment

27  facilities and stormwater management systems.

28         (a)  The department is authorized to make loans, to

29  provide loan guarantees, to purchase loan insurance, and to

30  refinance local debt through the issue of new loans for

31  projects approved by the department. Local governmental

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  agencies are authorized to borrow funds made available

  2  pursuant to this section and may pledge any revenue available

  3  to them to repay any funds borrowed.  The department shall

  4  administer loans to local governmental agencies so that at

  5  least 15 percent of each annual allocation for loans is

  6  reserved for small communities.

  7         (b)  The department may administer the resulting

  8  portfolio of loans, including the authority to sell or pledge

  9  the loans, or any portion of the loans, with approval of the

10  Governor, the Treasurer, and the Comptroller, sitting as the

11  State Board of Administration, to ensure compliance with

12  subsection (1). The department may hire experts to assist the

13  department in the administration of the portfolio of loans.

14  Any such hiring shall occur through requests for proposal.

15         (c)(b)  The department may make grants to financially

16  disadvantaged small communities, as defined in s. 403.1838,

17  using funds made available from grant allocations on loans

18  authorized under subsection (4). The grants must be

19  administered in accordance with s. 403.1838.

20         (d)(c)  The department may make grants to local

21  government agencies as authorized under the Federal Water

22  Pollution Control Act, or as a result of other federal action.

23  The grants must be administered in accordance with this

24  section and applicable federal requirements.

25         (7)  Eligible projects must be given priority according

26  to the extent each project is intended to remove, mitigate, or

27  prevent adverse effects on surface or ground water quality and

28  public health.  However, preference must be given to eligible

29  projects that protect the public health, that or are required

30  by law to eliminate sewage treatment facility discharges into

31  specific bodies of water, or that are located within the

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  geographic area encompassed by any surfacewater improvement

  2  and management plan adopted pursuant to s. 373.456.

  3         (9)  Funds for the loans and grants authorized under

  4  this section must be managed as follows:

  5         (a)  A nonlapsing trust fund with revolving loan

  6  provisions to be known as the "Sewage Treatment Revolving Loan

  7  Fund" is hereby established in the State Treasury to be used

  8  as a revolving fund by the department to carry out the purpose

  9  of this section.  Any funds therein which are not needed on an

10  immediate basis for loans may be invested pursuant to s.

11  215.49. The cost of administering the program shall be paid

12  from federal funds, and from reasonable service fees that may

13  be imposed upon loans, and from proceeds from the sale of

14  loans as permitted by federal law so as to enhance program

15  perpetuity.  Grants awarded by the Federal Government,

16  proceeds from the sale of loans, state matching funds, and

17  investment earnings thereon shall be deposited into the fund.

18  All moneys available in the fund, including investment

19  earnings on such amounts, are hereby designated to carry out

20  the purpose of this section. Principal and interest payments

21  with respect to loans held by the fund shall be deposited into

22  this fund. The principal and interest of all loans repaid and

23  investment earnings shall be deposited into this fund.

24         (b)  Revenues from the loan grant allocations

25  authorized under subsection (4), federal appropriations, state

26  matching funds for grants authorized by federal statute or

27  other federal action, and service fees, and all earnings

28  thereon, shall be deposited into the department's Grants and

29  Donations Trust Fund. Service fees and all earnings thereon

30  must be used solely for program administration. The loan grant

31  allocation revenues and earnings thereon must be used solely

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  for the purpose of making grants to financially disadvantaged

  2  small communities. Federal appropriations and state matching

  3  funds for grants authorized by federal statute or other

  4  federal action, and earnings thereon, must be used solely for

  5  the purposes authorized. All deposits into the department's

  6  Grants and Donations Trust Fund under this section, and

  7  earnings thereon, must be accounted for separately from all

  8  other moneys deposited into the fund.

  9         (10)(a)  Because the Legislature has experienced

10  revenue shortfalls in recent years and has been unable to

11  provide enough funds to fully match available federal funds to

12  help capitalize the Sewage Treatment Revolving Loan Fund, it

13  is necessary for innovative approaches to be considered to

14  help capitalize the revolving loan fund. The department shall

15  evaluate potential innovative approaches that can generate

16  funds to match available federal funds. The department may

17  adopt approaches that will help ensure the continuing

18  viability of the Sewage Treatment Revolving Loan Fund. The

19  department shall consider, among other possible alternatives,

20  the option of implementing by rule a program to allow local

21  governments to offer funds voluntarily to the state for use as

22  a match to available federal funds to capitalize the state

23  sewage treatment revolving loan fund.

24         (b)  The department may adopt rules necessary to

25  administer this section.

26         Section 4.  Subsection (4) is added to section 403.804,

27  Florida Statutes to read:

28         403.804  Environmental Regulation Commission; powers

29  and duties.--

30         (4)(a)  Where the commission has approved in a

31  department rule a numeric or narrative water quality standard

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  for a particular constituent, the department, a water

  2  management district, or a local program having delegated

  3  authority under s. 403.182 may apply the standard by

  4  calculating the constituent's maximum load for a specific

  5  watercourse or water body and, where such maximum load is

  6  calculated, shall implement the maximum load calculation

  7  through its permitting programs.

  8         (b)  Prior to implementation of the maximum load:

  9         1.  The department, a water management district, or a

10  local program having delegated authority under s. 403.182 must

11  have prepared a plan of study for the maximum load

12  calculation; and

13         2.  The secretary of the department must have approved

14  the maximum load calculation after notice of proposed agency

15  action under chapter 120. The secretary's approval of the

16  maximum load calculation is the sole point of entry for a

17  challenge to the maximum load calculation for that watercourse

18  or water body.

19         (c)  The department, a water management district, or a

20  local program having delegated authority under s. 403.182

21  shall consider the contributions of both point source and

22  nonpoint source pollutant loads in calculating and

23  implementing a maximum load. The department may, by rule,

24  establish procedures for pollutant trading in areas where a

25  maximum load calculation has been approved. Such procedures

26  may be implemented through permits or other authorizations,

27  must be legally binding, and must result in a higher level of

28  water quality protection than could be achieved in the absence

29  of pollutant trading.

30         (d)  Rule adoption under chapter 120 is not required to

31  implement the maximum load calculation or to accomplish any

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  other provision of this subsection. This subsection does not

  2  alter any applicable state water quality standards or restrict

  3  the authority otherwise granted to the department or a water

  4  management district under this chapter or chapter 373.

  5         Section 5.  Section 514.095, Florida Statutes, is

  6  created to read:

  7         514.095  Beach water sampling; health advisories.--The

  8  department may adopt and enforce rules to protect the health,

  9  safety, and welfare of persons using beach waters. The rules

10  shall establish health standards and prescribe procedures and

11  timeframes for bacteriological sampling of beach waters.

12  Beach waters include saltwater and brackish water. The

13  department may issue health advisories if beach water quality

14  fails to meet standards established by the department. The

15  authority to issue health advisories related to the

16  bacteriological sampling results of beach waters is preempted

17  to the state.

18         Section 6.  This act shall take effect upon becoming a

19  law.

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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 1006

  3

  4  All the provisions of sections 1-4 have been deleted from the
    committee substitute.  Section 1 of the bill now requires the
  5  research review and advisory committee established pursuant to
    s. 381.0065(4)(n), F.S., to conduct a study to identify the
  6  role of OSTDs in causing water quality problems.  The study
    will identify areas of the state which have impaired water
  7  quality and need corrective actions to avoid further
    deterioration in water quality conditions.  The DOH's
  8  Technical Review and Advisory Committee will approve the
    parameters of the study, with input from the DEP and the DOH.
  9  The departments will provide the necessary staff and support
    for the study.  A final report and recommendations for
10  corrective actions and implementing legislation must be
    submitted to the Governor, President of the Senate, and
11  Speaker of the House by January 15, 1999.

12  Section 2 of the bill now creates s. 403.0863, F.S., and
    requires the DEP to adopt, by rule, procedures for determining
13  which waters are nutrient-impaired. For these purposes,
    nutrient impairment will be established using the following
14  criteria, at a minimum:

15  -    Excessive levels of chlorophyll-a as determined by
         methods established in department rule;
16
    -    Excessive algal growth potential as determined by methods
17       established in department rule;

18  -    Nutrient concentrations at levels that cause an imbalance
         in natural populations of aquatic flora or fauna; or
19
    -    A high tropic state index, as determined by methods
20       established in department rules, which is indicative of
         eutrophic conditions.
21
    Section 3 amends s. 403.1835, F.S., to provide intent that the
22  sewage treatment facilities revolving loan program be
    self-perpetuating.  The DEP is authorized to administer the
23  fund's portfolio of loans, including having the authority to
    sell or pledge the loans, or any portion of the loans, with
24  approval of the Governor, the Treasurer, and the Comptroller,
    sitting as the State Board of Administration, to ensure
25  compliance with s. 403.1835(1), F.S. The DEP may hire experts
    to assist the department in the administration of the
26  portfolio of loans.  Any such hiring must occur through
    requests for proposal.
27
    This section also includes projects located within the
28  geographic area encompassed by any SWIM plan adopted pursuant
    to s. 373.456, F.S., with other types of projects receiving a
29  preference for loans.

30  This bill requires that the proceeds of any loans sold be
    deposited into the fund and permits such moneys to be used for
31  administering the fund.  Any principal and interest payments
    with respect to loans held by the fund must be deposited into
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    Florida Senate - 1998                           CS for SB 1006
    312-2001-98




  1  the fund.

  2  The DEP is also authorized to adopt approaches which will help
    ensure the continuing viability of the fund.
  3
    The remaining provisions of the bill are unchanged.
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