Senate Bill sb1142c1

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    Florida Senate - 2004                           CS for SB 1142

    By the Committee on Natural Resources; and Senator Dockery





    312-2093-04

  1                      A bill to be entitled

  2         An act relating to water resources; amending s.

  3         159.803, F.S.; revising the definition of

  4         "priority project"; creating s. 373.227, F.S.;

  5         requiring the development of a comprehensive

  6         statewide water conservation program for public

  7         water supply; establishing the purposes of the

  8         program; requiring the creation of a

  9         clearinghouse or inventory to provide an

10         integrated database for information on public

11         water supply conservation programs; authorizing

12         public water supply utilities to propose

13         goal-based water conservation plans or programs

14         with measurable goals; providing that

15         goal-based water conservation plans or programs

16         that are developed by public water supply

17         utilities and that provide reasonable assurance

18         of achieving water conservation at least as

19         well as conservation requirements adopted by

20         the appropriate water management district meet

21         water conservation requirements imposed as a

22         condition of obtaining a consumptive use

23         permit; requiring the submission of a report by

24         the Department of Environmental Protection;

25         providing rulemaking authority to the

26         Department of Environmental Protection and the

27         water management districts; amending s.

28         373.0361, F.S.; providing for a public workshop

29         on the development of regional water supply

30         plans that include the consideration of

31         population projections; providing for a list of

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    Florida Senate - 2004                           CS for SB 1142
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 1         water source options in regional water supply

 2         plans; providing additional regional water

 3         supply plan components; including conservation

 4         measures in regional water supply plans;

 5         revising specified reporting requirements of

 6         the Department of Environmental Protection;

 7         providing that a district water management plan

 8         may not be used as criteria for the review of

 9         permits for consumptive uses of water unless

10         the plan or applicable portion thereof has been

11         adopted by rule; providing construction;

12         amending s. 373.0831, F.S.; revising the

13         criteria by which water supply development

14         projects may receive priority consideration for

15         funding assistance; providing for permitting

16         and funding of a proposed alternative water

17         supply project identified in the relevant

18         approved regional water supply plan; amending

19         s. 373.1961, F.S.; providing funding priority;

20         providing for the establishment of a revolving

21         loan fund for alternative water supply

22         projects; providing conditions for certain

23         projects to receive funding assistance;

24         amending s. 373.536, F.S.; expanding

25         requirements of the 5-year water resource

26         development work program for water management

27         districts; amending s. 403.064, F.S.; revising

28         provisions relating to reuse feasibility

29         studies; providing for metering use of

30         reclaimed water and volume-based rates

31         therefor; requiring wastewater utilities to

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    Florida Senate - 2004                           CS for SB 1142
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 1         submit plans for metering use and volume-based

 2         rate structures to the department; creating s.

 3         403.0645, F.S.; requiring certain uses of

 4         reclaimed water at state facilities; requiring

 5         state agencies and water management districts

 6         to submit to the Secretary of Environmental

 7         Protection periodic reports concerning

 8         reclaimed water use; amending s. 403.1835,

 9         F.S.; authorizing the Department of

10         Environmental Protection to make specified

11         deposits for the purpose of enabling

12         below-market interest rate loans for treatment

13         of polluted water; providing for a study of the

14         feasibility of discharging reclaimed wastewater

15         into canals and the aquifer system in a

16         specified area as an environmentally acceptable

17         means of accomplishing described objectives;

18         requiring reports; providing effective dates.

19  

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

21  

22         Section 1.  Subsection (5) of section 159.803, Florida

23  Statutes, is amended to read:

24         159.803  Definitions.--As used in this part, the term:

25         (5)  "Priority project" means a solid waste disposal

26  facility or a sewage facility, as such terms are defined in s.

27  142 of the Code, or water facility, as defined in s. 142 of

28  the Code, which is operated by a member-owned, not-for-profit

29  utility, or any project which is to be located in an area

30  which is an enterprise zone designated pursuant to s.

31  290.0065.

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    Florida Senate - 2004                           CS for SB 1142
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 1         Section 2.  Section 373.227, Florida Statutes, is

 2  created to read:

 3         373.227  Water conservation; legislative findings;

 4  legislative intent; objectives; comprehensive statewide water

 5  conservation program requirements.--

 6         (1)  The Legislature recognizes that the proper

 7  conservation of water is an important means of achieving the

 8  economical and efficient utilization of water necessary to

 9  constitute a reasonable-beneficial use. The overall water

10  conservation goal of the state is to prevent and reduce

11  wasteful, uneconomical, impractical, or unreasonable use of

12  water resources. The Legislature finds that the social,

13  economic, and cultural conditions of the state relating to the

14  use of public water supply vary by service area and that

15  public water supply utilities must have the flexibility to

16  tailor water conservation measures to best suit their

17  individual circumstances. The Legislature encourages the use

18  of efficient, effective, and affordable water conservation

19  measures. Where water is provided by a public water supply

20  utility, the Legislature intends that a variety of

21  conservation measures be made available and used to encourage

22  efficient water use. To achieve these conservation objectives,

23  the state should emphasize goal-based, accountable, tailored,

24  and measurable water conservation programs for public water

25  supply. For purposes of this section, "public water supply

26  utility" shall include both publicly owned and privately owned

27  public water supply utilities that sell potable water on a

28  retail basis to end users.

29         (2)  To implement the findings in subsection (1), the

30  Department of Environmental Protection, in cooperation with

31  the water management districts and other stakeholders, shall

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 1  develop a comprehensive statewide water conservation program

 2  for public water supply. The program should:

 3         (a)  Encourage utilities to implement water

 4  conservation programs which are economically efficient,

 5  effective, affordable, and appropriate;

 6         (b)  Allow no reduction in utility-specific water

 7  conservation effectiveness over current programs;

 8         (c)  Be goal-based, accountable, measurable, and

 9  implemented collaboratively with water suppliers, water users,

10  and water management agencies;

11         (d)  Focus upon cost-effective measures for the unique

12  characteristics of particular utility service areas,

13  incorporating analyses of economic efficiency of individual

14  practices where appropriate;

15         (e)  Use standardized public water supply conservation

16  definitions and standardized quantitative and qualitative

17  performance measures for an overall system of assessing and

18  benchmarking the effectiveness of water conservation programs

19  and practices;

20         (f)  Create a clearinghouse or inventory for water

21  conservation programs and practices available to public water

22  supply utilities that will provide an integrated statewide

23  database for the collection, evaluation, and dissemination of

24  quantitative and qualitative information on public water

25  supply conservation programs and practices and their

26  effectiveness. The clearinghouse or inventory should have

27  technical assistance capabilities to aid in the design,

28  refinement, and implementation of water conservation programs

29  and practices. The clearinghouse or inventory shall also

30  provide for continual assessment of the effectiveness of water

31  conservation programs and practices;

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 1         (g)  Develop a standardized water conservation planning

 2  process for utilities; and

 3         (h)  Develop and maintain a Florida-specific water

 4  conservation guidance document containing a menu of affordable

 5  and effective water conservation practices to assist public

 6  water supply utilities in the design and implementation of

 7  utility-specific water conservation programs tailored for

 8  their individual service areas.

 9         (3)  Regarding the use of water conservation or drought

10  rate structures as a conservation practice, a water management

11  district shall afford a public water supply utility wide

12  latitude in adopting a rate structure and shall limit its

13  review to whether the utility has provided reasonable

14  assurance that the rate structure contains a schedule of rates

15  designed to promote efficient use of water by providing

16  economic incentives. A water management district shall not fix

17  or revise rates.

18         (4)  A public water supply utility may propose a

19  goal-based water conservation plan or program that is tailored

20  to its individual circumstances. Progress towards goals must

21  be measurable. If the utility provides reasonable assurance

22  that the plan or program will achieve effective water

23  conservation at least as well as the water conservation

24  requirements adopted by the appropriate water management

25  district, the district must approve the plan or program which

26  shall satisfy water conservation requirements imposed as a

27  condition of obtaining a consumptive use permit.

28         (5)  By December 1, 2005, the Department of

29  Environmental Protection is directed to submit a written

30  report to the President of the Senate, the Speaker of the

31  House of Representatives, and the appropriate substantive

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    Florida Senate - 2004                           CS for SB 1142
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 1  committees of the Senate and the House of Representatives on

 2  the progress made in implementing the comprehensive statewide

 3  water conservation program for public water supply required by

 4  this section. The report must include any statutory changes

 5  and funding requests necessary for the continuation of the

 6  program.

 7         (6)  The department or a water management district may

 8  adopt rules pursuant to ss. 120.536(1) and 120.54 to carry out

 9  the purposes of this section.

10         Section 3.  Subsections (1), (2), (5), and (6) of

11  section 373.0361, Florida Statutes, are amended to read:

12         373.0361  Regional water supply planning.--

13         (1)  By October 1, 1998, the governing board shall

14  initiate water supply planning for each water supply planning

15  region identified in the district water management plan under

16  s. 373.036, where it determines that sources of water are not

17  adequate for the planning period to supply water for all

18  existing and projected reasonable-beneficial uses and to

19  sustain the water resources and related natural systems. The

20  planning must be conducted in an open public process, in

21  coordination and cooperation with local governments, regional

22  water supply authorities, government-owned and privately owned

23  water utilities, self-suppliers, and other affected and

24  interested parties. During development but prior to completion

25  of the regional water supply plan, the district must conduct

26  at least one public workshop to discuss the technical data and

27  modeling tools anticipated to be used to support the plan. A

28  determination by the governing board that initiation of a

29  regional water supply plan for a specific planning region is

30  not needed pursuant to this section shall be subject to s.

31  120.569. The governing board shall reevaluate such a

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    Florida Senate - 2004                           CS for SB 1142
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 1  determination at least once every 5 years and shall initiate a

 2  regional water supply plan, if needed, pursuant to this

 3  subsection.

 4         (2)  Each regional water supply plan shall be based on

 5  at least a 20-year planning period and shall include, but not

 6  be limited to:

 7         (a)  A water supply development component that

 8  includes:

 9         1.  A quantification of the water supply needs for all

10  existing and reasonably projected future uses within the

11  planning horizon. The level-of-certainty planning goal

12  associated with identifying the water supply needs of existing

13  and future reasonable-beneficial uses shall be based upon

14  meeting those needs for a 1-in-10-year drought event.

15  Population projections used for determining public water

16  supply needs must be based upon the best available data. In

17  determining the best available data, the district shall

18  consider the University of Florida's Bureau of Economic and

19  Business Research (BEBR) median population projections and any

20  population projection data and analysis submitted by a local

21  government pursuant to the public workshop described in

22  subsection (1) if the data and analysis support the local

23  government's comprehensive plan. Any adjustment of or

24  deviation from the BEBR projections must be fully described,

25  and the original BEBR data must be presented along with the

26  adjusted data.

27         2.  A list of water source options for water supply

28  development, including traditional and alternative source

29  options sources, from which local government, government-owned

30  and privately owned utilities, self-suppliers, and others may

31  choose, for water supply development, the total capacity of

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    Florida Senate - 2004                           CS for SB 1142
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 1  which will, in conjunction with water conservation and other

 2  demand management measures, exceed the needs identified in

 3  subparagraph 1.

 4         3.  For each option listed in subparagraph 2., the

 5  estimated amount of water available for use and the estimated

 6  costs of and potential sources of funding for water supply

 7  development.

 8         4.  A list of water supply development projects that

 9  meet the criteria in s. 373.0831(4).

10         (b)  A water resource development component that

11  includes:

12         1.  A listing of those water resource development

13  projects that support water supply development.

14         2.  For each water resource development project listed:

15         a.  An estimate of the amount of water to become

16  available through the project.

17         b.  The timetable for implementing or constructing the

18  project and the estimated costs for implementing, operating,

19  and maintaining the project.

20         c.  Sources of funding and funding needs.

21         d.  Who will implement the project and how it will be

22  implemented.

23         (c)  The recovery and prevention strategy described in

24  s. 373.0421(2).

25         (d)  A funding strategy for water resource development

26  projects, which shall be reasonable and sufficient to pay the

27  cost of constructing or implementing all of the listed

28  projects.

29         (e)  Consideration of how the options addressed in

30  paragraphs (a) and (b) serve the public interest or save costs

31  overall by preventing the loss of natural resources or

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 1  avoiding greater future expenditures for water resource

 2  development or water supply development. However, unless

 3  adopted by rule, these considerations do not constitute final

 4  agency action.

 5         (f)  The technical data and information applicable to

 6  the planning region which are contained in the district water

 7  management plan and are necessary to support the regional

 8  water supply plan.

 9         (g)  The minimum flows and levels established for water

10  resources within the planning region.

11         (h)  Reservations of water adopted by rule pursuant to

12  s. 373.223(4).

13         (i)  An analysis, developed in cooperation with the

14  department, of areas or instances in which the variance

15  provisions of s. 378.212(1)(g) or s. 378.404(9) may be used to

16  create water supply development or water resource development

17  projects.

18  

19  Within the boundaries of a regional water supply authority in

20  the Southwest Florida Water Management District, the water

21  supply development component of the regional water supply plan

22  relating to the use of water by the authority shall be

23  developed jointly by the authority and the district.

24         (5)  By November 15, 1997, and Annually and in

25  conjunction with the reporting requirements of s.

26  373.536(6)(a)4. thereafter, the department shall submit to the

27  Governor and the Legislature a report on the status of

28  regional water supply planning in each district. The report

29  shall include:

30         (a)  A compilation of the estimated costs of and

31  potential sources of funding for water resource development

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 1  and water supply development projects, as identified in the

 2  water management district regional water supply plans.

 3         (b)  A description of each district's progress toward

 4  achieving its water resource development objectives, as

 5  directed by s. 373.0831(3), including the district's

 6  implementation of its 5-year water resource development work

 7  program.

 8         (c)  An assessment of the overall progress being made

 9  to develop water supply that is consistent with regional water

10  supply plans to meet existing and future reasonable-beneficial

11  needs during a 1-in-10-year drought.

12         (6)  Nothing contained in the water supply development

13  component of the district water management plan shall be

14  construed to require local governments, government-owned or

15  privately owned water utilities, self-suppliers, or other

16  water suppliers to select a water supply development option

17  identified in the component merely because it is identified in

18  the plan, nor may the plan be used in the review of permits

19  under part II unless the plan, or an applicable portion

20  thereof, has been adopted by rule. However, this subsection

21  does not prohibit a water management district from employing

22  the data or other information used to establish the plan in

23  reviewing permits under part II, nor does it shall not be

24  construed to limit the authority of the department or

25  governing board under part II.

26         Section 4.  Subsection (3) of section 373.0831, Florida

27  Statutes, is amended, and paragraph (c) is added to subsection

28  (4) of that section, to read:

29         373.0831  Water resource development; water supply

30  development.--

31  

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 1         (3)  The water management districts shall fund and

 2  implement water resource development as defined in s. 373.019.

 3  The water management districts are encouraged to implement

 4  water resource development as expeditiously as possible in

 5  areas subject to regional water supply plans. Each governing

 6  board shall include in its annual budget the amount needed for

 7  the fiscal year to implement water resource development

 8  projects, as prioritized in its regional water supply plans.

 9         (4)

10         (c)  If a proposed alternative water supply development

11  project is identified in the relevant approved regional water

12  supply plan, the project shall receive:

13         1.  A 20-year consumptive use permit, if it otherwise

14  meets the permit requirements under ss. 373.223 and 373.236

15  and rules adopted thereunder.

16         2.  Consideration for priority funding pursuant to s.

17  373.1961(2) if the project meets one of the criteria in this

18  subsection.

19         Section 5.  Subsection (2) of section 373.1961, Florida

20  Statutes, is amended to read:

21         373.1961  Water production.--

22         (2)  The Legislature finds that, due to a combination

23  of factors, vastly increased demands have been placed on

24  natural supplies of fresh water, and that, absent increased

25  development of alternative water supplies, such demands may

26  increase in the future. The Legislature also finds that

27  potential exists in the state for the production of

28  significant quantities of alternative water supplies,

29  including reclaimed water, and that water production includes

30  the development of alternative water supplies, including

31  reclaimed water, for appropriate uses. It is the intent of the

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 1  Legislature that utilities develop reclaimed water systems,

 2  where reclaimed water is the most appropriate alternative

 3  water supply option, to deliver reclaimed water to as many

 4  users as possible through the most cost-effective means, and

 5  to construct reclaimed water system infrastructure to their

 6  owned or operated properties and facilities where they have

 7  reclamation capability. It is also the intent of the

 8  Legislature that the water management districts which levy ad

 9  valorem taxes for water management purposes should share a

10  percentage of those tax revenues with water providers and

11  users, including local governments, water, wastewater, and

12  reuse utilities, municipal, industrial, and agricultural water

13  users, and other public and private water users, to be used to

14  supplement other funding sources in the development of

15  alternative water supplies. The Legislature finds that public

16  moneys or services provided to private entities for such uses

17  constitute public purposes which are in the public interest.

18  In order to further the development and use of alternative

19  water supply systems, including reclaimed water systems, the

20  Legislature provides the following:

21         (a)  The governing boards of the water management

22  districts where water resource caution areas have been

23  designated shall include in their annual budgets an amount for

24  the development of alternative water supply systems, including

25  reclaimed water systems, pursuant to the requirements of this

26  subsection. Beginning in 1996, such amounts shall be made

27  available to water providers and users no later than December

28  31 of each year, through grants, matching grants, revolving

29  loans, or the use of district lands or facilities pursuant to

30  the requirements of this subsection and guidelines established

31  by the districts. In making grants or loans, funding priority

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 1  must be given to projects in accordance with s. 373.0831(4).

 2  Without diminishing amounts available through other means

 3  described in this paragraph, the governing boards are

 4  encouraged to consider establishing revolving loan funds to

 5  expand the total funds available to accomplish the objectives

 6  of this section. A revolving loan fund created under this

 7  paragraph must be a nonlapsing fund from which the water

 8  management district may make loans with interest rates below

 9  prevailing market rates to public or private entities for the

10  purposes described in this section. The governing board may

11  adopt resolutions to establish revolving loan funds which must

12  specify the details of the administration of the fund, the

13  procedures for applying for loans from the fund, the criteria

14  for awarding loans from the fund, the initial capitalization

15  of the fund, and the goals for future capitalization of the

16  fund in subsequent budget years. Revolving loan funds created

17  under this paragraph must be used to expand the total sums and

18  sources of cooperative funding available for the development

19  of alternative water supplies. The Legislature does not intend

20  for the creation of revolving loan funds to supplant or

21  otherwise reduce existing sources or amounts of funds

22  currently available through other means.

23         (b)  It is the intent of the Legislature that for each

24  reclaimed water utility, or any other utility, which receives

25  funds pursuant to this subsection, the appropriate

26  rate-setting authorities should develop rate structures for

27  all water, wastewater, and reclaimed water and other

28  alternative water supply utilities in the service area of the

29  funded utility, which accomplish the following:

30  

31  

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 1         1.  Provide meaningful progress toward the development

 2  and implementation of alternative water supply systems,

 3  including reclaimed water systems;

 4         2.  Promote the conservation of fresh water withdrawn

 5  from natural systems;

 6         3.  Provide for an appropriate distribution of costs

 7  for all water, wastewater, and alternative water supply

 8  utilities, including reclaimed water utilities, among all of

 9  the users of those utilities; and

10         4.  Prohibit rate discrimination within classes of

11  utility users.

12         (c)  Funding assistance provided by the water

13  management districts for a water reuse system project may

14  include the following grant or loan conditions for that

15  project if the water management district determines that such

16  conditions will encourage water use efficiency:

17         1.  Metering of reclaimed water use for the following

18  activities: residential irrigation, agricultural irrigation,

19  industrial uses except for electric utilities as defined in s.

20  366.02(2), landscape irrigation, irrigation of other public

21  access areas, commercial and institutional uses such as toilet

22  flushing, and transfers to other reclaimed water utilities.

23         2.  Implementation of reclaimed water rate structures

24  based on actual use of reclaimed water for the types of reuse

25  activities listed in subparagraph 1.

26         3.  Implementation of education programs to inform the

27  public about water issues, water conservation, and the

28  importance and proper use of reclaimed water.

29         4.  Development of location data for key reuse

30  facilities.

31  

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 1         (d)(c)  In order to be eligible for funding pursuant to

 2  this subsection, a project must be consistent with a local

 3  government comprehensive plan and the governing body of the

 4  local government must require all appropriate new facilities

 5  within the project's service area to connect to and use the

 6  project's alternative water supplies. The appropriate local

 7  government must provide written notification to the

 8  appropriate district that the proposed project is consistent

 9  with the local government comprehensive plan.

10         (e)(d)  Any and all revenues disbursed pursuant to this

11  subsection shall be applied only for the payment of capital or

12  infrastructure costs for the construction of alternative water

13  supply systems that provide alternative water supplies.

14         (f)(e)  By January 1 of each year, the governing boards

15  shall make available written guidelines for the disbursal of

16  revenues pursuant to this subsection. Such guidelines shall

17  include at minimum:

18         1.  An application process and a deadline for filing

19  applications annually.

20         2.  A process for determining project eligibility

21  pursuant to the requirements of paragraphs (d) (c) and (e)

22  (d).

23         3.  A process and criteria for funding projects

24  pursuant to this subsection that cross district boundaries or

25  that serve more than one district.

26         (g)(f)  The governing board of each water management

27  district shall establish an alternative water supplies grants

28  advisory committee to recommend to the governing board

29  projects for funding pursuant to this subsection. The advisory

30  committee members shall include, but not be limited to, one or

31  more representatives of county, municipal, and investor-owned

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 1  private utilities, and may include, but not be limited to,

 2  representatives of agricultural interests and environmental

 3  interests. Each committee member shall represent his or her

 4  interest group as a whole and shall not represent any specific

 5  entity. The committee shall apply the guidelines and project

 6  eligibility criteria established by the governing board in

 7  reviewing proposed projects. After one or more hearings to

 8  solicit public input on eligible projects, the committee shall

 9  rank the eligible projects and shall submit them to the

10  governing board for final funding approval. The advisory

11  committee may submit to the governing board more projects than

12  the available grant money would fund.

13         (h)(g)  All revenues made available annually pursuant

14  to this subsection must be encumbered annually by the

15  governing board if it approves projects sufficient to expend

16  the available revenues. Funds must be disbursed within 36

17  months after encumbrance.

18         (i)(h)  For purposes of this subsection, alternative

19  water supplies are supplies of water that have been reclaimed

20  after one or more public supply, municipal, industrial,

21  commercial, or agricultural uses, or are supplies of

22  stormwater, or brackish or salt water, that have been treated

23  in accordance with applicable rules and standards sufficient

24  to supply the intended use.

25         (j)(i)  This subsection shall not be subject to the

26  rulemaking requirements of chapter 120.

27         (k)(j)  By January 30 of each year, each water

28  management district shall submit an annual report to the

29  Governor, the President of the Senate, and the Speaker of the

30  House of Representatives which accounts for the disbursal of

31  all budgeted amounts pursuant to this subsection. Such report

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 1  shall describe all projects funded and shall account

 2  separately for moneys provided through grants, matching

 3  grants, revolving loans, and the use of district lands or

 4  facilities.

 5         (l)(k)  The Florida Public Service Commission shall

 6  allow entities under its jurisdiction constructing alternative

 7  water supply facilities, including but not limited to aquifer

 8  storage and recovery wells, to recover the full, prudently

 9  incurred cost of such facilities through their rate structure.

10  Every component of an alternative water supply facility

11  constructed by an investor-owned utility shall be recovered in

12  current rates.

13         Section 6.  Paragraph (a) of subsection (6) of section

14  373.536, Florida Statutes, is amended to read:

15         373.536  District budget and hearing thereon.--

16         (6)  FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS

17  PLAN; WATER RESOURCE DEVELOPMENT WORK PROGRAM.--

18         (a)  Each district must, by the date specified for each

19  item, furnish copies of the following documents to the

20  Governor, the President of the Senate, the Speaker of the

21  House of Representatives, the chairs of all legislative

22  committees and subcommittees having substantive or fiscal

23  jurisdiction over the districts, as determined by the

24  President of the Senate or the Speaker of the House of

25  Representatives as applicable, the secretary of the

26  department, and the governing board of each county in which

27  the district has jurisdiction or derives any funds for the

28  operations of the district:

29         1.  The adopted budget, to be furnished within 10 days

30  after its adoption.

31  

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 1         2.  A financial audit of its accounts and records, to

 2  be furnished within 10 days after its acceptance by the

 3  governing board. The audit must be conducted in accordance

 4  with the provisions of s. 11.45 and the rules adopted

 5  thereunder. In addition to the entities named above, the

 6  district must provide a copy of the audit to the Auditor

 7  General within 10 days after its acceptance by the governing

 8  board.

 9         3.  A 5-year capital improvements plan, to be furnished

10  within 45 days after the adoption of the final budget. The

11  plan must include expected sources of revenue for planned

12  improvements and must be prepared in a manner comparable to

13  the fixed capital outlay format set forth in s. 216.043.

14         4.  A 5-year water resource development work program to

15  be furnished within 45 days after the adoption of the final

16  budget. The program must describe the district's

17  implementation strategy for the water resource development

18  component of each approved regional water supply plan

19  developed or revised under s. 373.0361. The work program must

20  address all the elements of the water resource development

21  component in the district's approved regional water supply

22  plans and must identify which projects in the work program

23  will provide water, explain how each water resource

24  development project will produce additional water available

25  for consumptive uses, estimate the quantity of water to be

26  produced by each project, and provide an assessment of the

27  contribution of the district's regional water supply plans in

28  providing sufficient water to meet the water supply needs of

29  existing and future reasonable-beneficial uses for a 1-in-10-

30  year drought event. Within 45 days after its submittal, the

31  department shall review the proposed work program and submit

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 1  its findings, questions, and comments to the district. The

 2  review must include a written evaluation of the program's

 3  consistency with the furtherance of the district's approved

 4  regional water supply plans, and the adequacy of proposed

 5  expenditures. As part of the review, the department shall give

 6  interested parties the opportunity to provide written comments

 7  on each district's proposed work program. Within 60 days after

 8  receipt of the department's evaluation, the governing board

 9  shall state in writing to the department which changes

10  recommended in the evaluation it will incorporate into its

11  work program or specify the reasons for not incorporating the

12  changes. The department shall include the district's responses

13  in a final evaluation report and shall submit a copy of the

14  report to the Governor, the President of the Senate, and the

15  Speaker of the House of Representatives.

16         (b)  If any entity listed in paragraph (a) provides

17  written comments to the district regarding any document

18  furnished under this subsection, the district must respond to

19  the comments in writing and furnish copies of the comments and

20  written responses to the other entities.

21         Section 7.  Subsections (1) and (6) of section 403.064,

22  Florida Statutes, are amended, and subsection (16) is added to

23  that section, to read:

24         403.064  Reuse of reclaimed water.--

25         (1)  The encouragement and promotion of water

26  conservation, and reuse of reclaimed water, as defined by the

27  department, are state objectives and are considered to be in

28  the public interest. The Legislature finds that the reuse of

29  reclaimed water is a critical component of meeting the state's

30  existing and future water supply needs while sustaining

31  natural systems. The Legislature further finds that for those

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 1  wastewater treatment plants permitted and operated under an

 2  approved reuse program by the department, the reclaimed water

 3  shall be considered environmentally acceptable and not a

 4  threat to public health and safety. The Legislature encourages

 5  the development of incentive-based programs for reuse

 6  implementation.

 7         (6)  A reuse feasibility study prepared under

 8  subsection (2) satisfies a water management district

 9  requirement to conduct a reuse feasibility study imposed on a

10  local government or utility that has responsibility for

11  wastewater management. The data included in the study and the

12  conclusions of the study must be given significant

13  consideration by the applicant and the appropriate water

14  management district in an analysis of the economic,

15  environmental, and technical feasibility of providing

16  reclaimed water for reuse under part II of chapter 373 and

17  must be presumed relevant to the determination of feasibility.

18  A water management district may not require a separate study

19  when a reuse feasibility study has been completed under

20  subsection (2).

21         (16)  Utilities implementing reuse projects are

22  encouraged, except in the case of use by electric utilities as

23  defined in s. 366.02(2), to meter use of reclaimed water by

24  all end users and to charge for the use of reclaimed water

25  based on the actual volume used when such metering and charges

26  can be shown to encourage water conservation. Metering and the

27  use of volume-based rates are effective water management tools

28  for the following reuse activities: residential irrigation,

29  agricultural irrigation, industrial uses, landscape

30  irrigation, irrigation of other public access areas,

31  commercial and institutional uses such as toilet flushing, and

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 1  transfers to other reclaimed water utilities. Beginning with

 2  the submittal due on January 1, 2005, each domestic wastewater

 3  utility that provides reclaimed water for the reuse activities

 4  listed in this section shall include a summary of its metering

 5  and rate structure as part of its annual reuse report to the

 6  department.

 7         Section 8.  Section 403.0645, Florida Statutes, is

 8  created to read:

 9         403.0645  Reclaimed water use at state facilities.--

10         (1)  The encouragement and promotion of reuse of

11  reclaimed water has been established as a state objective in

12  ss. 373.250 and 403.064. Reuse has become an integral part of

13  water and wastewater management in Florida, and Florida is

14  recognized as a national leader in water reuse.

15         (2)  The state and various state agencies and water

16  management districts should take a leadership role in using

17  reclaimed water in lieu of other water sources. The use of

18  reclaimed water by state agencies and facilities will conserve

19  potable water and will serve an important public education

20  function.

21         (3)  Each state agency and water management district

22  shall use reclaimed water to the greatest extent practicable

23  for landscape irrigation, toilet flushing, aesthetic features

24  such as decorative ponds and fountains, cooling water, and

25  other useful purposes allowed by department rules at state

26  facilities, including, but not limited to, parks, rest areas,

27  visitor welcome centers, buildings, college campuses, and

28  other facilities.

29         (4)  Each state agency and water management district

30  shall submit to the Secretary of Environmental Protection by

31  February 1 of each year a summary of activities designed to

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 1  utilize reclaimed water at its facilities along with a summary

 2  of the amounts of reclaimed water actually used for beneficial

 3  purposes.

 4         Section 9.  Paragraph (b) of subsection (3) of section

 5  403.1835, Florida Statutes, is amended to read:

 6         403.1835  Water pollution control financial

 7  assistance.--

 8         (3)  The department may provide financial assistance

 9  through any program authorized under s. 603 of the Federal

10  Water Pollution Control Act (Clean Water Act), Pub. L. No.

11  92-500, as amended, including, but not limited to, making

12  grants and loans, providing loan guarantees, purchasing loan

13  insurance or other credit enhancements, and buying or

14  refinancing local debt. This financial assistance must be

15  administered in accordance with this section and applicable

16  federal authorities. The department shall administer all

17  programs operated from funds secured through the activities of

18  the Florida Water Pollution Control Financing Corporation

19  under s. 403.1837, to fulfill the purposes of this section.

20         (b)  The department may make or request the corporation

21  to make loans, grants, and deposits to other entities eligible

22  to participate in the financial assistance programs authorized

23  under the Federal Water Pollution Control Act, or as a result

24  of other federal action, which entities may pledge any revenue

25  available to them to repay any funds borrowed. Notwithstanding

26  s. 17.57, the department may make deposits to financial

27  institutions which earn less than the prevailing rate for

28  United States Treasury securities with corresponding

29  maturities for the purpose of enabling such financial

30  institutions to make below-market interest rate loans to

31  

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 1  entities qualified to receive loans under this section and the

 2  rules of the department.

 3         Section 10.  The Legislature finds that, within the

 4  area identified in the Lower East Coast Regional Water Supply

 5  Plan approved by the South Florida Water Management District

 6  pursuant to section 373.0361, Florida Statutes, the

 7  groundwater levels can benefit from augmentation. The

 8  Legislature finds that the direct or indirect discharge of

 9  reclaimed water into canals and the aquifer system for

10  transport and subsequent reuse may provide an environmentally

11  acceptable means to augment water supplies and enhance natural

12  systems; however, the Legislature also recognizes that there

13  are water quality and water quantity issues that must be

14  better understood and resolved. In addition, there are cost

15  savings possible by collocating enclosed conduits for

16  conveyance of water for reuse in this area within canal

17  rights-of-way which should be investigated. Toward that end,

18  the Department of Environmental Protection, in consultation

19  with the South Florida Water Management District, southeast

20  Florida utilities, affected local governments, including local

21  governments with principal responsibility for the operation

22  and maintenance of a water control system capable of conveying

23  reclaimed wastewater for reuse, representatives of the

24  environmental and engineering communities, public health

25  professionals, and individuals who have expertise in water

26  quality, shall conduct a study to investigate the feasibility

27  of discharging reclaimed wastewater into canals and the

28  aquifer system as an environmentally acceptable means of

29  augmenting groundwater supplies, enhancing natural systems,

30  and conveying reuse water within enclosed conduits within the

31  canal right-of-way. The study must include an assessment of

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 1  the water quality, water supply, public health, technical, and

 2  legal implications related to the canal discharge and

 3  collocation concepts. The department shall issue a preliminary

 4  written report containing draft findings and recommendations

 5  for public comment by November 1, 2005. The department shall

 6  provide a written report on the results of its study to the

 7  Governor and the relevant substantive committees of the Senate

 8  and the House of Representatives by January 31, 2006. This

 9  section may not be used to alter the purpose of the

10  Comprehensive Everglades Restoration Plan or the

11  implementation of the Water Resources Development Act of 2000.

12         Section 11.  Except as otherwise expressly provided in

13  this act, this act shall take effect upon becoming a law and

14  shall apply to all contracts pending on that date.

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1142

 3                                 

 4  The committee substitute substantially changes the original
    bill by requiring that the Department of Environmental
 5  Protection,in cooperation with the five water management
    districts and other interested stakeholders, develop a
 6  comprehensive statewide water conservation program that should
    encourage utilities to implement economically efficient,
 7  effective, affordable, and appropriate water conservation
    programs, and should not allow any reduction in current
 8  utility-specific water conservation programs. The statewide
    comprehensive program should be goal-based, accountable,
 9  measurable, and implemented collaboratively. The committee
    substitute directs water management districts to give public
10  water supply utilities wide latitude in adopting a rate
    structure when the districts are considering the use of water
11  conservation or drought rate structures as a method of
    conservation. The water management districts cannot fix or
12  revise rates. Public water supply utilities are authorized to
    propose goal-based water conservation plans or programs that
13  are tailored to individual service areas so long as the
    proposed plan or program is at least as effective as the water
14  conservation requirements which could be imposed by the
    appropriate water management district. By December 1, 2005,
15  the Department of Environmental Protection must submit a
    written report to the President of the Senate and the Speaker
16  of the House of Representatives, as well as the appropriate
    legislative committees, on the progress of implementing the
17  comprehensive statewide water conservation program. The
    committee substitute includes original provisions of the bill
18  providing additional responsibilities for the water management
    districts when regional water supply plans are being
19  developed. Regional water supply authorities in the Southwest
    Florida Water Management District are authorized to
20  participate in the development of the water supply component
    of a regional water supply plan. Critieria for priority
21  funding assistance for alternative water supply development
    projects is retained. The use of reclaimed water at state
22  facilities and the water management districts for specified
    purposes is also retained from the original bill. Finally, the
23  committee substitute includes a feasibility study for the
    augmentation of groundwater supplies in South Florida through
24  the discharge of reclaimed wastewater in canals and the
    aquifer system while still providing that the feasibility
25  study cannot alter the Comprehensive Everglades Restoration
    Plan or the federal Water Resources Development Act of 2000.
26  

27  

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29  

30  

31  

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