Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1426
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Appropriations Subcommittee on Agriculture, Environment, and
       General Government (Burgess) recommended the following:
    1         Senate Substitute for Amendment (442316) (with title
    2  amendment)
    4         Delete lines 52 - 317
    5  and insert:
    6  by governmental entities to address impacts regulated under this
    7  part is needed.
    8         (c)The construction, operation, maintenance, and long-term
    9  management of water quality enhancement areas pursuant to this
   10  section will improve the certainty and long-term viability of
   11  water quality treatment systems.
   12         (d)Water quality enhancement areas are a valuable tool to
   13  assist governmental entities in satisfying the net improvement
   14  performance standard pursuant to s. 373.414(1)(b)3. to ensure
   15  significant reductions of pollutant loadings.
   16         (e)Water quality enhancement areas that provide water
   17  quality enhancement credits to governmental entities seeking
   18  permits under this part and to governmental entities seeking to
   19  meet an assigned basin management action plan allocation or
   20  reasonable assurance plan pursuant to s. 403.067 are considered
   21  an appropriate and permittable option.
   22         (2)DEFINITIONS.—As used in this section, the term:
   23         (a)“Enhancement credit” means a standard unit of measure
   24  which represents a quantity of pollutant removed.
   25         (b)“Governmental entity” means any political subdivision
   26  of the state, including any state agency, department, agency of
   27  the state, county, municipality, special district, school
   28  district, utility authority, or other authority or
   29  instrumentality, agency, unit, or department thereof.
   30         (c)“Natural system” means an ecological system supporting
   31  aquatic and wetland-dependent natural resources, including fish
   32  and aquatic and wetland-dependent wildlife habitats.
   33         (d)“Water quality enhancement area” means a natural system
   34  constructed, operated, managed, and maintained for the purpose
   35  of providing offsite regional treatment for which enhancement
   36  credits may be provided pursuant to a water quality enhancement
   37  area permit issued under this section.
   38         (e)“Water quality enhancement area permit” means an
   39  environmental resource permit issued for a water quality
   40  enhancement area which authorizes the construction, operation,
   41  management, and maintenance of an enhancement area and the
   42  purchase and sale of enhancement credits.
   44         (a)The construction, operation, management, and
   45  maintenance of a water quality enhancement area must be approved
   46  through the environmental resource permitting process.
   47         (b)Water quality enhancement credits may be sold only to
   48  governmental entities.
   49         (c)A water quality enhancement area must be used to
   50  address contributions of one or more pollutants or other
   51  constituents in the watershed in which the water quality
   52  enhancement area is located which do not meet applicable state
   53  water quality criteria.
   54         (d)A water quality enhancement area must be employed to
   55  use, create, or improve natural systems in order to improve
   56  water quality.
   57         (e)A governmental entity may use a water quality
   58  enhancement area for its own water quality needs. However, a
   59  governmental entity may not act as a sponsor to construct,
   60  operate, manage, or maintain a water quality enhancement area or
   61  market enhancement credits to third parties.
   62         (f)A local government may not require a permit or
   63  otherwise impose regulations governing the operation of a water
   64  quality enhancement area.
   65         (g)This section does not eliminate the obligation of an
   66  applicant for a water quality enhancement area permit or an
   67  applicant proposing to use enhancement credits to comply with
   68  all requirements of this part pertaining to adverse impacts to
   69  water quality in receiving waters and adjacent lands or
   70  wetlands.
   72         (a)To obtain a water quality enhancement area permit, the
   73  applicant must provide reasonable assurances that the proposed
   74  water quality enhancement area will be used to:
   75         1.Meet the requirements for issuance of an environmental
   76  resource permit;
   77         2.Benefit water quality in the watershed in which the
   78  water quality enhancement area is located;
   79         3.Meet defined performance or success criteria for the
   80  reduction of one or more pollutants or other constituents that
   81  prevent receiving waters from meeting applicable state water
   82  quality criteria;
   83         4.Ensure long-term pollutant reduction through effective
   84  operation and maintenance in perpetuity by designation of a
   85  responsible long-term maintenance entity supported by an
   86  endowment or other long-term financial assurance sufficient to
   87  assure perpetual operation and maintenance;
   88         5.Demonstrate sufficient legal or equitable interest in
   89  the property to ensure access and perpetual protection and
   90  management of the land within the water quality enhancement
   91  area; and
   92         6.Provide for permanent preservation of the water quality
   93  enhancement area which meets the requirements of s. 704.06.
   94         (b)The water quality enhancement area permit must provide
   95  for the assessment, valuation, and award of credits based on
   96  units of pollutant removed.
   97         (c)The department shall base its determination of the
   98  award of enhancement credits on standard numerical models or
   99  analytical tools that establish the water quality enhancement
  100  area’s ability to remove pollutants or constituents.
  101         1.Where a basin management action plan exists for the
  102  watershed in which the water quality enhancement area is
  103  located, the applicant must use the same numerical models or
  104  analytical tools used for that basin management action plan in
  105  the water quality enhancement area permit application.
  106         2.If a basin management action plan does not exist for the
  107  watershed in which the water quality enhancement area is
  108  located, the applicant, with the approval of the department, may
  109  submit as part of the water quality enhancement area permit
  110  application model parameters and results used in a numerical
  111  model or analytical tool used by the department to develop a
  112  basin management action plan for a watershed with similar
  113  physical characteristics and pollutants as that where the
  114  proposed water quality enhancement area is to be located.
  115         3.If the department determines that its numerical model or
  116  analytical tool used for a basin management action plan is not
  117  appropriate for the proposed water quality enhancement area, the
  118  applicant must use a standard numerical model or analytical tool
  119  for the proposed water quality enhancement area.
  120         4.To assist the department in evaluating and determining
  121  enhancement credits, a water quality enhancement area permit
  122  application must include the numerical model or analytical tool
  123  results used to establish the water quality enhancement area’s
  124  efficacy. Supporting information must include, but need not be
  125  limited to:
  126         a.Rainfall data over the longest period of record
  127  available, collected from the closest site to the proposed water
  128  quality enhancement area, preferably within the same drainage
  129  basin.
  130         b.Anticipated average annual water quality and quantity
  131  inflows to the proposed water quality enhancement area, based on
  132  published local data collected over a period of record which
  133  most closely matches the rainfall data under this paragraph.
  134         c.Site-specific conditions affecting the anticipated
  135  performance of the proposed water quality enhancement area,
  136  including the proposed treatment type and the anticipated
  137  associated reduction rates, as demonstrated by the performance
  138  of other areas where the treatment type has been established and
  139  operating over a minimum of two consecutive wet and dry seasons.
  140         d.Data provided pursuant to sub-subparagraphs a. and b.
  141  must be from monitoring stations the department deems sufficient
  142  to determine flows and local water quality conditions.
  143         (d)The issuance of a water quality enhancement area permit
  144  under this section does not preclude the responsibility of an
  145  applicant to obtain other applicable federal, state, and local
  146  permits for the construction activities associated with the
  147  water quality enhancement area.
  149         (a)An applicant for a water quality enhancement area
  150  permit must propose a performance and success criteria
  151  monitoring and verification plan, with protocols to be
  152  implemented once the water quality enhancement area is
  153  operational. The protocols must be appropriate for the water
  154  quality enhancement area and sufficient to demonstrate that the
  155  area is meeting defined performance or success criteria for the
  156  reduction of pollutants or contaminants for which credits are
  157  awarded by the department.
  158         (b)If a permittee fails to comply with the conditions of a
  159  water quality enhancement area permit, the department must
  160  revoke the permittee’s ability to sell enhancement credits until
  161  the water quality enhancement area is compliant with the permit
  162  conditions.
  163         (6)ENHANCEMENT CREDITS.—
  164         (a)The department or water management district shall
  165  authorize the sale and use of enhancement credits to
  166  governmental entities to address adverse water quality impacts
  167  of activities regulated under this part or to assist
  168  governmental entities seeking to meet required nonpoint source
  169  contribution reductions assigned in a basin management action
  170  plan or reasonable assurance plan pursuant to s. 403.067.
  171         (b)Before approving the use of enhancement credits, the
  172  department or water management district must determine that the
  173  enhancement credits used by an applicant seeking a permit under
  174  this part are appropriate for a specific permit use.
  175         (c)Water quality improvement projects using natural
  176  systems or land use modifications, including, but not limited
  177  to, constructed wetlands or minor impoundments that reduce
  178  pollutants to a receiving water body, may be used by an
  179  applicant to generate enhancement credits if approved by the
  180  department. Water quality enhancement areas may not be located
  181  on lands purchased for conservation pursuant to the Florida
  182  Forever Act or the Florida Preservation 2000 Act.
  183         (d)The department shall provide for and maintain a ledger
  184  that tracks the award, release, and use of enhancement credits.
  185         1.A water management district that authorizes applicants
  186  seeking permits under this part to use enhancement credits to
  187  address water quality impacts must report to the department the
  188  amount of enhancement credits used by the applicants.
  189         2.The operator of a water quality enhancement area shall
  190  notify the department of the amount of enhancement credits sold
  191  or used within 30 days after the date the enhancement credit
  192  transaction is completed.
  193         (e)Reductions in pollutant loading required under any
  194  state regulatory program are not eligible to be considered as
  195  enhancement credits.
  196         (f)Enhancement credits may not be used by point source
  197  dischargers to satisfy regulatory requirements other than those
  198  necessary to obtain an environmental resource permit for
  199  construction and operation of the surface water management
  200  system of the site.
  201         (g)Use of enhancement credits made available by water
  202  quality enhancement areas is voluntary.
  203         (h)Any landowner, discharger, or other responsible person
  204  regulated under this part or s. 403.067 implementing applicable
  205  management strategies specified in an adopted basin management
  206  action plan or reasonable assurance plan may not be required by
  207  any permit or other enforcement action to use enhancement
  208  credits to reduce pollutant loads to achieve the pollutant
  209  reductions established pursuant to s. 403.067.
  210         (i)A local government may not deny the use of enhancement
  211  credits due to the location of the water quality enhancement
  212  area outside the jurisdiction of the local government.
  213         (7)AUTHORITY.—The authority granted to the department
  214  under this section is supplemental to the authority granted
  215  under s. 403.067(8).
  216         (8)RULES.—The department may adopt rules to implement this
  217  section.
  218         Section 2. Paragraph (b) of subsection (1) and paragraphs
  219  (a), (b), and (d) of subsection (3) of section 403.892, Florida
  220  Statutes, are amended, and subsection (6) is added to that
  221  section, to read:
  222         403.892 Incentives for the use of graywater technologies.—
  223         (1) As used in this section, the term:
  224         (b) “Graywater” has the same meaning as in s.
  225  381.0065(2)(f) s. 381.0065(2)(e).
  226         (3) To qualify for the incentives under subsection (2), the
  227  developer or homebuilder must certify to the applicable
  228  governmental entity as part of its application for development
  229  approval or amendment of a development order that all of the
  230  following conditions are met:
  231         (a) The proposed or existing development has at least 25
  232  single-family residential homes that are either detached or
  233  multifamily dwellings. This paragraph does not apply to
  234  multifamily projects over five stories in height.
  235         (b) Each single-family residential home or residence will
  236  have its own residential graywater system that is dedicated for
  237  its use. Each residence forming part of a multifamily project
  238  will be serviced by either its own residential graywater system
  239  dedicated for its use or a master graywater collection and reuse
  240  system for the entire project.
  241         (d) The required maintenance of the graywater system will
  242  be the responsibility of the owner residential homeowner.
  243         (6)This section does not apply to multifamily projects
  244  more than five stories in height. Whether a dwelling is occupied
  245  by an owner is not an eligibility criterion for a developer or
  246  homebuilder to receive the incentives authorized pursuant to
  247  this section.
  248         Section 3. The Department of Environmental Protection shall
  249  adopt and modify rules adopted pursuant to ss. 373.4136 and
  250  373.414, Florida Statutes, to ensure that required financial
  251  assurances are equivalent and sufficient to provide for the
  252  long-term management of mitigation permitted under ss. 373.4136
  253  and 373.414, Florida Statutes. The department, in consultation
  254  with the water management districts, shall include the
  255  rulemaking required by this section in existing active
  256  rulemaking or shall complete rule development by June 30, 2023.
  259  ================= T I T L E  A M E N D M E N T ================
  260  And the title is amended as follows:
  261         Delete lines 5 - 34
  262  and insert:
  263         enhancement areas; providing requirements for water
  264         quality enhancement areas and permits; requiring
  265         applicants to propose performance and success criteria
  266         monitoring and verification plans that meet certain
  267         requirements; providing requirements for enhancement
  268         credits; requiring the Department of Environmental
  269         Protection to revoke a permit under certain
  270         conditions; requiring the department and water
  271         management districts to authorize the sale and use of
  272         enhancement credits to governmental entities to
  273         address certain adverse water quality impacts and to
  274         meet certain water quality requirements; requiring the
  275         department to maintain enhancement credit ledgers;
  276         providing construction; authorizing the department to
  277         adopt rules; amending s. 403.892, F.S.; correcting a
  278         cross-reference; revising the conditions that a
  279         developer or homebuilder must certify it meets as part
  280         of its application for development approval or
  281         amendment of a development order; providing
  282         applicability; requiring the department to adopt and
  283         modify specified rules, as applicable; providing
  284         requirements for such rulemaking;