House Bill 2365

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    Florida House of Representatives - 2000                HB 2365

        By Representative Alexander






  1                      A bill to be entitled

  2         An act relating to wetlands mitigation;

  3         amending s. 373.4135, F.S.; prohibiting certain

  4         local government denial of a permitted

  5         mitigation bank or offsite regional mitigation;

  6         amending s. 373.4136, F.S.; requiring the

  7         Department of Environmental Protection and

  8         certain water management districts to adopt a

  9         single uniform functional assessment

10         methodology, by rule, by a specified date;

11         encouraging local government use of the

12         methodology; providing conditions and

13         procedures for use of the methodology;

14         prohibiting use of environmental resource

15         permit rule mitigation ratios when the

16         methodology is used; revising provisions

17         relating to size of the mitigation service

18         area; providing for use of regional watersheds

19         to guide establishment of mitigation service

20         areas; requiring satisfaction of cumulative

21         impact considerations; providing rulemaking

22         authority; providing that mitigation bank

23         permit applications are subject to certain

24         established processing procedures; amending s.

25         373.414, F.S.; revising provisions relating to

26         money donated as wetlands mitigation; requiring

27         either a mitigation bank permit or a memorandum

28         of agreement between the department and the

29         applicable water management district, and a

30         federal mitigation bank instrument or

31         memorandum of agreement, for new mitigation

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  1         projects receiving such money undertaken after

  2         a specified date; providing an exception;

  3         requiring certain reporting; providing an

  4         effective date.

  5

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

  7

  8         Section 1.  Subsection (2) of section 373.4135, Florida

  9  Statutes, is amended to read:

10         373.4135  Mitigation banks and offsite regional

11  mitigation.--

12         (2)  Local governments shall not deny the use of a

13  mitigation bank or offsite regional mitigation due to its

14  location outside of the jurisdiction of the local government.

15  If the United States Army Corps of Engineers and the

16  department or applicable water management district issue

17  permits approving the use of a mitigation bank or offsite

18  regional mitigation located outside of the jurisdiction of the

19  local government, the local government shall not deny the use

20  of such mitigation when reviewing an application for approval

21  under this chapter, chapter 125, chapter 163, or any other

22  source of authority.

23         Section 2.  Subsections (4), (6), and (11) of section

24  373.4136, Florida Statutes, are amended, and subsection (12)

25  is added to said section, to read:

26         373.4136  Establishment and operation of mitigation

27  banks.--

28         (4)  MITIGATION CREDITS.--After evaluating the

29  information submitted by the applicant for a mitigation bank

30  permit and assessing the proposed mitigation bank pursuant to

31  the criteria in this section, the department or water

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  1  management district shall award a number of mitigation credits

  2  to a proposed mitigation bank or phase of such mitigation

  3  bank.  An entity establishing and operating a mitigation bank

  4  may apply to modify the mitigation bank permit to seek the

  5  award of additional mitigation credits if the mitigation bank

  6  results in an additional increase in ecological value over the

  7  value contemplated at the time of the original permit

  8  issuance, or the most recent modification thereto involving

  9  the number of credits awarded. The number of credits awarded

10  shall be based on the degree of improvement in ecological

11  value expected to result from the establishment and operation

12  of the mitigation bank as determined using a functional

13  assessment methodology. The department and each water

14  management district that has responsibility for reviewing and

15  taking final agency action on mitigation bank permit

16  applications pursuant to the operating agreements adopted

17  under s. 373.046 shall adopt a single uniform functional

18  assessment methodology by rule no later than July 1, 2001.

19  This uniform functional assessment methodology may account for

20  different ecological communities in different areas of the

21  state. This uniform functional assessment methodology shall be

22  used by the department and those water management districts to

23  award credits and to deduct credits from a mitigation bank. A

24  local government which operates an independent wetland

25  regulatory program is not required, but is encouraged, to use

26  this uniform functional assessment methodology for its

27  program. An entity that has received a mitigation bank permit

28  before the adoption of the uniform functional assessment

29  methodology shall have credits deducted from its bank pursuant

30  to the credit assessment method in place when the bank was

31  permitted, unless the entity elects to have credits deducted

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  1  pursuant to the uniform functional assessment methodology. The

  2  environmental resource permit rule mitigation ratios may not

  3  be used to determine mitigation bank credit requirements for

  4  those impact sites where the uniform functional assessment

  5  methodology is used. The uniform functional assessment

  6  methodology must, at a minimum, evaluate In determining the

  7  degree of improvement in ecological value, each of the

  8  following factors, at a minimum, shall be evaluated:

  9         (a)  The extent to which target hydrologic regimes can

10  be achieved and maintained.

11         (b)  The extent to which management activities promote

12  natural ecological conditions, such as natural fire patterns.

13         (c)  The proximity of the mitigation bank to areas with

14  regionally significant ecological resources or habitats, such

15  as national or state parks, Outstanding National Resource

16  Waters and associated watersheds, Outstanding Florida Waters

17  and associated watersheds, and lands acquired through

18  governmental or nonprofit land acquisition programs for

19  environmental conservation; and the extent to which the

20  mitigation bank establishes corridors for fish, wildlife, or

21  listed species to those resources or habitats.

22         (d)  The quality and quantity of wetland or upland

23  restoration, enhancement, preservation, or creation.

24         (e)  The ecological and hydrological relationship

25  between wetlands and uplands in the mitigation bank.

26         (f)  The extent to which the mitigation bank provides

27  habitat for fish and wildlife, especially habitat for species

28  listed as threatened, endangered, or of special concern, or

29  provides habitats that are unique for that mitigation service

30  area.

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  1         (g)  The extent to which the lands that are to be

  2  preserved are already protected by existing state, local, or

  3  federal regulations or land use restrictions.

  4         (h)  The extent to which lands to be preserved would be

  5  adversely affected if they were not preserved.

  6         (i)  Any special designation or classification of the

  7  affected waters and lands.

  8         (6)  MITIGATION SERVICE AREA.--The department or water

  9  management district shall establish a mitigation service area

10  for each mitigation bank permit.  The department or water

11  management district shall notify and consider comments

12  received on the proposed mitigation service area from each

13  local government within the proposed mitigation service area

14  that operates a wetlands regulatory program.  Except as

15  provided herein, mitigation credits may be withdrawn and used

16  only to offset adverse impacts in the mitigation service area.

17  The boundaries of the mitigation service area shall depend

18  upon the geographic area where the mitigation bank could

19  reasonably be expected to offset adverse impacts.  A

20  mitigation service area may be larger than the regional

21  watershed if the mitigation bank provides exceptional

22  ecological value such that adverse impacts outside the

23  regional watershed could reasonably be expected to be

24  adequately offset by the mitigation bank. A mitigation service

25  area may be smaller than a regional watershed if adverse

26  impacts throughout the regional watershed cannot reasonably be

27  expected to be offset by the mitigation bank because of local

28  ecological or hydrological conditions. Mitigation service

29  areas may overlap, and mitigation service areas for two or

30  more mitigation banks may be approved for a regional

31  watershed.

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  1         (a)  In determining the size of the mitigation service

  2  area extent to which a mitigation bank provides exceptional

  3  ecological value such that adverse impacts outside the

  4  regional watershed could reasonably be expected to be

  5  adequately offset by the mitigation bank, the department or

  6  the water management district shall consider the

  7  characteristics, size, and location of the mitigation bank

  8  and, at a minimum, the extent to which the mitigation bank:

  9         1.  Is part of a larger regional ecosystem;

10         2.1.  Will promote a regional integrated ecological

11  network;

12         3.2.  Will significantly enhance the water quality or

13  restoration of an offsite receiving water body that is

14  designated as an Outstanding Florida Water, a Wild and Scenic

15  River, an aquatic preserve, a water body designated in a plan

16  adopted pursuant to s. 373.456 of the Surface Water

17  Improvement and Management Act, or a nationally designated

18  estuarine preserve;

19         4.3.  Will provide for the long-term viability of

20  endangered or threatened species or species of special

21  concern; and

22         5.4.  Is consistent with the objectives of a regional

23  management plan adopted or endorsed by the department or water

24  management districts.

25         (b)  The department and water management districts

26  shall use regional watersheds to guide the establishment of

27  mitigation service areas. However, a mitigation service area

28  shall not necessarily be limited to the regional watershed in

29  which the mitigation bank is located, but shall be larger than

30  that regional watershed if adverse impacts outside the

31  regional watershed could reasonably be expected to be

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  1  adequately offset by the mitigation bank. Similarly, a

  2  mitigation service area may be smaller than a regional

  3  watershed in which the mitigation bank is located if adverse

  4  impacts throughout the regional watershed cannot reasonably be

  5  expected to be offset by the mitigation bank because of unique

  6  local ecological or hydrological conditions. In delineating

  7  regional watersheds pursuant to this subsection, the

  8  department and water management districts shall delineate the

  9  largest areas that have hydrological or ecological

10  connectivity to recognize the regional benefits provided by

11  mitigation banks. Use of a mitigation bank for impacts

12  occurring within the bank's mitigation service area shall

13  satisfy cumulative impact considerations as set forth in s.

14  373.414(8).

15         (c)(b)  Once a mitigation bank service area has been

16  established by the department or a water management district

17  for a mitigation bank, such service area shall be accepted by

18  all water management districts, local governments, and the

19  department.

20         (d)(c)  If the requirements in s. 373.4135(1)(b) are

21  met, the following projects or activities regulated under this

22  part shall be eligible to use a mitigation bank, regardless of

23  whether they are notwithstanding the fact that they are not

24  completely located within the mitigation service area:

25         1.  Projects with adverse impacts partially located

26  within the mitigation service area.

27         2.  Linear projects, such as roadways, transmission

28  lines, distribution lines, pipelines, or railways.

29         3.  Projects with total adverse impacts of less than 1

30  acre in size.

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  1         (11)  RULES.--The department and water management

  2  district may adopt rules to implement the provisions of s.

  3  373.4135 and this section, which shall include, but not be

  4  limited to, provisions:

  5         (a)  Requiring financial responsibility for the

  6  construction, operation, and long-term management of a

  7  mitigation bank;

  8         (b)  For the perpetual protection and management of

  9  mitigation banks; and

10         (c)  For the use of the uniform functional assessment

11  methodology adopted pursuant to this section Establishing a

12  system and methodology for the valuation, assessment, and

13  award of mitigation credits.

14         (12)  PROCESSING.--Mitigation bank permit applications

15  are subject to s. 373.4141.

16         Section 3.  Paragraph (b) of subsection (1) of section

17  373.414, Florida Statutes, is amended to read:

18         373.414  Additional criteria for activities in surface

19  waters and wetlands.--

20         (1)  As part of an applicant's demonstration that an

21  activity regulated under this part will not be harmful to the

22  water resources or will not be inconsistent with the overall

23  objectives of the district, the governing board or the

24  department shall require the applicant to provide reasonable

25  assurance that state water quality standards applicable to

26  waters as defined in s. 403.031(13) will not be violated and

27  reasonable assurance that such activity in, on, or over

28  surface waters or wetlands, as delineated in s. 373.421(1), is

29  not contrary to the public interest. However, if such an

30  activity significantly degrades or is within an Outstanding

31  Florida Water, as provided by department rule, the applicant

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  1  must provide reasonable assurance that the proposed activity

  2  will be clearly in the public interest.

  3         (b)  If the applicant is unable to otherwise meet the

  4  criteria set forth in this subsection, the governing board or

  5  the department, in deciding to grant or deny a permit, shall

  6  consider measures proposed by or acceptable to the applicant

  7  to mitigate adverse effects that may be caused by the

  8  regulated activity.  Such measures may include, but are not

  9  limited to, onsite mitigation, offsite mitigation, offsite

10  regional mitigation, and the purchase of mitigation credits

11  from mitigation banks permitted under s. 373.4136.  It shall

12  be the responsibility of the applicant to choose the form of

13  mitigation. The mitigation must offset the adverse effects

14  caused by the regulated activity.

15         1.  The department or water management districts may

16  accept the donation of money as mitigation only where the

17  donation is specified for use in a duly noticed environmental

18  creation, preservation, enhancement, or restoration project,

19  endorsed by the department or the governing board of the water

20  management district, which offsets the impacts of the activity

21  permitted under this part.  However, the provisions of this

22  subsection shall not apply to projects undertaken pursuant to

23  s. 373.4137 or chapter 378. Where a permit is required under

24  this part to implement any project endorsed by the department

25  or a water management district, all necessary permits must

26  have been issued prior to the acceptance of any cash donation.

27  After the effective date of this act, When money is donated to

28  either the department or a water management district to offset

29  impacts authorized by a permit under this part, the department

30  or the water management district shall accept only a donation

31  that represents the full cost to the department or water

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  1  management district of undertaking the project that is

  2  intended to mitigate the adverse impacts. The full cost shall

  3  include all direct and indirect costs, as applicable, such as

  4  those for land acquisition, land restoration or enhancement,

  5  perpetual land management, and general overhead consisting of

  6  costs such as staff time, building, and vehicles.  The

  7  department or the water management district may use a

  8  multiplier or percentage to add to other direct or indirect

  9  costs to estimate general overhead.  Mitigation credit for

10  such a donation shall be given only to the extent that the

11  donation covers the full cost to the agency of undertaking the

12  project that is intended to mitigate the adverse impacts.

13  However, nothing herein shall be construed to prevent the

14  department or a water management district from accepting a

15  donation representing a portion of a larger project, provided

16  that the donation covers the full cost of that portion and

17  mitigation credit is given only for that portion.  The

18  department or water management district may deviate from the

19  full cost requirements of this subparagraph to resolve a

20  proceeding brought pursuant to chapter 70 or a claim for

21  inverse condemnation.  Nothing in this section shall be

22  construed to require the owner of a private mitigation bank,

23  permitted under s. 373.4136, to include the full cost of a

24  mitigation credit in the price of the credit to a purchaser of

25  said credit.

26         2.  In allowing the department and water management

27  districts to accept the donation of cash as mitigation, it is

28  the intent of the Legislature to make mitigation affordable

29  and demonstrate accountability by ensuring that mitigation is

30  being carried out so as to offset the loss of wetland

31  functions. Therefore, by January 1, 2001, the department and

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  1  water management districts shall ensure that either a

  2  mitigation bank permit pursuant to s. 373.4136 or a memorandum

  3  of agreement between the department and applicable water

  4  management district is obtained covering each environmental

  5  creation, preservation, enhancement, or restoration project

  6  that is endorsed by the department or a water management

  7  district and is the recipient of cash donated as mitigation.

  8  If a memorandum of agreement is obtained, the memorandum of

  9  agreement shall substantially meet the requirements of ss.

10  373.4135 and 373.4136 and the rules adopted thereunder. In

11  addition, by January 1, 2001, the department and water

12  management districts shall ensure that either a mitigation

13  banking instrument or memorandum of agreement is obtained from

14  the United States Army Corps of Engineers. An environmental

15  creation, preservation, enhancement, or restoration project

16  that is endorsed, prior to January 1, 2001, by the department

17  or a water management district and is the recipient of cash

18  donated as mitigation may continue to receive such cash

19  donation. However, beginning January 1, 2001, the department

20  and water management districts may not approve the donation of

21  cash towards a new environmental project not in existence

22  prior to January 1, 2001, unless such project has first

23  obtained either a state mitigation bank permit or memorandum

24  of agreement and has obtained a federal mitigation bank

25  instrument or memorandum of agreement as provided herein. The

26  provisions of this subsection shall not apply to environmental

27  projects undertaken pursuant to the provisions of s. 373.4137.

28  In implementing this subsection, the Legislature directs the

29  department and water management districts to employ innovative

30  measures to keep mitigation affordable and accountable.

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  1         3.2.  The department and each water management district

  2  shall report to the Executive Office of the Governor by

  3  January 31 and July 31 of each year all cash donations

  4  accepted during the preceding 6 months for wetland mitigation

  5  purposes, which shall include a description of the endorsed

  6  mitigation projects and identification of the state mitigation

  7  bank permit or memorandum of agreement and the federal

  8  mitigation bank instrument or memorandum of agreement obtained

  9  for such projects.

10         4.3.  If the applicant is unable to meet water quality

11  standards because existing ambient water quality does not meet

12  standards, the governing board or the department shall

13  consider mitigation measures proposed by or acceptable to the

14  applicant that cause net improvement of the water quality in

15  the receiving body of water for those parameters which do not

16  meet standards.

17         5.4.  If mitigation requirements imposed by a local

18  government for surface water and wetland impacts of an

19  activity regulated under this part cannot be reconciled with

20  mitigation requirements approved under a permit for the same

21  activity issued under this part, the mitigation requirements

22  for surface water and wetland impacts shall be controlled by

23  the permit issued under this part.

24         Section 4.  This act shall take effect July 1, 2000.

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Prohibits certain local government denial of a wetlands
  4    mitigation or offsite regional mitigation permitted by
      the U.S. Army Corps of Engineers and the Department of
  5    Environmental Protection or applicable water management
      district. Requires the department and certain water
  6    management districts to adopt a single uniform functional
      assessment methodology, by rule, by July 1, 2001.
  7    Encourages, but does not require, local government use of
      the methodology. Provides procedures for use of the
  8    methodology, and provides that an entity that received a
      mitigation bank permit prior to its adoption may elect to
  9    use the methodology. Prohibits use of environmental
      resource permit rule mitigation ratios when the
10    methodology is used. Revises provisions relating to size
      of a mitigation service area. Provides for use of
11    regional watersheds to guide establishment of mitigation
      service areas, and requires satisfaction of cumulative
12    impact considerations. Provides rulemaking authority.
      Provides that mitigation bank permit applications are
13    subject to certain established permit processing
      procedures. Revises provisions relating to money donated
14    as wetlands mitigation for environmental projects to
      offset adverse impacts. Requires either a mitigation bank
15    permit or a memorandum of agreement between the
      department and the applicable water management district,
16    and a federal mitigation bank instrument or memorandum of
      agreement, for new projects receiving such money
17    undertaken after January 1, 2001, and requires certain
      reporting thereof. Provides an exception for projects for
18    environmental mitigation of the impact of transportation
      projects.
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