Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. PCS (666660) for CS for SB 1426 Ì897990UÎ897990 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/01/2022 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Burgess) recommended the following: 1 Senate Substitute for Amendment (638546) (with title 2 amendment) 3 4 Delete lines 86 - 255 5 and insert: 6 governmental entities seeking to meet an assigned basin 7 management action plan allocation or reasonable assurance plan 8 or for the purpose of achieving net improvement pursuant to s. 9 373.414(1)(b)3. after the governmental entity has provided 10 reasonable assurance of meeting department rules for design and 11 construction of all onsite stormwater management. 12 (c) A water quality enhancement area must be used to 13 address contributions of one or more pollutants or other 14 constituents in the watershed, basin, sub-basin, targeted 15 restoration area, water body, or section of water body, as 16 determined by the department, in which the water quality 17 enhancement area is located which do not meet applicable state 18 water quality criteria. 19 (d) A water quality enhancement area must be employed to 20 use, create, or improve natural systems in order to improve 21 water quality. 22 (e) A governmental entity may use a water quality 23 enhancement area for its own water quality needs. However, a 24 governmental entity may not act as a sponsor to construct, 25 operate, manage, or maintain a water quality enhancement area or 26 market enhancement credits to third parties. 27 (f) A local government may not require a permit or 28 otherwise impose regulations governing the operation of a water 29 quality enhancement area. 30 (g) This section does not eliminate the obligation of an 31 applicant for a water quality enhancement area permit or an 32 applicant proposing to use enhancement credits to comply with 33 all requirements of this part pertaining to adverse impacts to 34 water quality in receiving waters and adjacent lands or 35 wetlands. 36 (4) WATER QUALITY ENHANCEMENT AREA PERMIT.— 37 (a) To obtain a water quality enhancement area permit, the 38 applicant must provide reasonable assurances that the proposed 39 water quality enhancement area will be used to: 40 1. Meet the requirements for issuance of an environmental 41 resource permit; 42 2. Benefit water quality in the watershed in which the 43 water quality enhancement area is located; 44 3. Meet defined performance or success criteria for the 45 reduction of one or more pollutants or other constituents that 46 prevent receiving waters from meeting applicable state water 47 quality criteria; 48 4. Ensure long-term pollutant reduction through effective 49 operation and maintenance in perpetuity by designation of a 50 responsible long-term maintenance entity supported by an 51 endowment or other long-term financial assurance sufficient to 52 assure perpetual operation and maintenance; 53 5. Demonstrate sufficient legal or equitable interest in 54 the property to ensure access to and perpetual protection and 55 management of the land within the water quality enhancement 56 area; and 57 6. Provide for permanent preservation of the water quality 58 enhancement area which meets the requirements of s. 704.06. 59 (b) The water quality enhancement area permit must provide 60 for the assessment, valuation, and award of credits based on 61 units of pollutant removed. 62 (c) The department shall base its determination of the 63 award of enhancement credits on standard numerical models or 64 analytical tools that establish the water quality enhancement 65 area’s ability to remove pollutants or constituents. 66 1. Where a basin management action plan exists for the 67 watershed in which the water quality enhancement area is 68 located, the applicant must use the same numerical models or 69 analytical tools used for that basin management action plan in 70 the water quality enhancement area permit application. 71 2. If a basin management action plan does not exist for the 72 watershed in which the water quality enhancement area is 73 located, the applicant, with the approval of the department, may 74 submit as part of the water quality enhancement area permit 75 application model parameters and results used in a numerical 76 model or analytical tool used by the department to develop a 77 basin management action plan for a watershed with similar 78 physical characteristics and pollutants as that where the 79 proposed water quality enhancement area is to be located. 80 3. If the department determines that its numerical model or 81 analytical tool used for a basin management action plan is not 82 appropriate for the proposed water quality enhancement area, the 83 applicant must use a standard numerical model or analytical tool 84 for the proposed water quality enhancement area. 85 4. To assist the department in evaluating and determining 86 enhancement credits, a water quality enhancement area permit 87 application must include the numerical model or analytical tool 88 results used to establish the water quality enhancement area’s 89 efficacy. Supporting information must include, but need not be 90 limited to: 91 a. Rainfall data over the longest period of record 92 available, collected from the closest site to the proposed water 93 quality enhancement area, preferably within the same drainage 94 basin. 95 b. Anticipated average annual water quality and quantity 96 inflows to the proposed water quality enhancement area, based on 97 published local data collected over a period of record which 98 most closely matches the rainfall data under this paragraph. 99 c. Site-specific conditions affecting the anticipated 100 performance of the proposed water quality enhancement area, 101 including the proposed treatment type and the anticipated 102 associated reduction rates, as demonstrated by the performance 103 of other areas where the treatment type has been established and 104 operating over a minimum of two consecutive wet and dry seasons. 105 5. Data provided pursuant to sub-subparagraphs 4.a. and 106 4.b. must be from monitoring stations the department deems 107 sufficient to determine flows and local water quality 108 conditions. 109 (d) The issuance of a water quality enhancement area permit 110 under this section does not preclude the responsibility of an 111 applicant to obtain other applicable federal, state, and local 112 permits for the construction activities associated with the 113 water quality enhancement area. 114 (5) WATER QUALITY ENHANCEMENT SERVICE AREA.—The department 115 shall establish a water quality enhancement service area for 116 each water quality enhancement area. Enhancement credits may be 117 withdrawn and used only to address adverse impacts in the 118 enhancement service area. The boundaries of the enhancement 119 service area shall depend upon the geographic area where the 120 enhancement area could reasonably be expected to address adverse 121 impacts. Enhancement service areas may overlap, and enhancement 122 service areas for two or more enhancement areas may be approved 123 for a regional watershed. 124 (6) MONITORING AND VERIFICATION.— 125 (a) An applicant for a water quality enhancement area 126 permit must propose a performance and success criteria 127 monitoring and verification plan, with protocols to be 128 implemented once the water quality enhancement area is 129 operational. The protocols must be appropriate for the water 130 quality enhancement area and sufficient to demonstrate that the 131 area is meeting defined performance or success criteria for the 132 reduction of pollutants or contaminants for which credits are 133 awarded by the department. 134 (b) If a permittee fails to comply with the conditions of a 135 water quality enhancement area permit, the department must 136 revoke the permittee’s ability to sell enhancement credits until 137 the water quality enhancement area is compliant with the permit 138 conditions. 139 (7) ENHANCEMENT CREDITS.— 140 (a) The department or water management district shall 141 authorize the sale and use of enhancement credits to 142 governmental entities to address adverse water quality impacts 143 of activities regulated under this part or to assist 144 governmental entities seeking to meet required nonpoint source 145 contribution reductions assigned in a basin management action 146 plan or reasonable assurance plan pursuant to s. 403.067. 147 (b) Before approving the use of enhancement credits, the 148 department or water management district must determine that the 149 enhancement credits used by an applicant seeking a permit under 150 this part are appropriate for a specific permit use. 151 (c) Water quality improvement projects using natural 152 systems or land use modifications, including, but not limited 153 to, constructed wetlands or minor impoundments that reduce 154 pollutants to a receiving water body, may be used by an 155 applicant to generate enhancement credits if approved by the 156 department. Water quality enhancement areas may not be located 157 on lands purchased for conservation pursuant to the Florida 158 Forever Act or the Florida Preservation 2000 Act. 159 (d) The department shall provide for and maintain a ledger 160 that tracks the award, release, and use of enhancement credits. 161 1. A water management district that authorizes applicants 162 seeking permits under this part to use enhancement credits to 163 address water quality impacts must report to the department the 164 amount of enhancement credits used by the applicants. 165 2. The operator of a water quality enhancement area shall 166 notify the department of the amount of enhancement credits sold 167 or used within 30 days after the date the enhancement credit 168 transaction is completed. 169 (e) Reductions in pollutant loading required under any 170 state regulatory program are not eligible to be considered as 171 enhancement credits. 172 (f) Enhancement credits may not be used by point source 173 dischargers to satisfy regulatory requirements other than those 174 necessary to obtain an environmental resource permit for 175 construction and operation of the surface water management 176 system of the site. 177 (g) Use of enhancement credits made available by water 178 quality enhancement areas is voluntary. 179 (h) Any landowner, discharger, or other responsible person 180 regulated under this part or s. 403.067 implementing applicable 181 management strategies specified in an adopted basin management 182 action plan or reasonable assurance plan may not be required by 183 any permit or other enforcement action to use enhancement 184 credits to reduce pollutant loads to achieve the pollutant 185 reductions established pursuant to s. 403.067. 186 (i) A local government may not deny the use of enhancement 187 credits due to the location of the water quality enhancement 188 area outside the jurisdiction of the local government. 189 (j) Notwithstanding any other provision of law, nothing in 190 this section may be construed to limit or restrict the authority 191 of the department to deny the use of enhancement credits when 192 the department is not reasonably assured that the use of the 193 credits will not cause or contribute to a violation of water 194 quality standards, even if the project being implemented by the 195 governmental entity is within the enhancement service area. If 196 the department receives a request for the use of enhancement 197 credits and it determines that their use will not cause or 198 contribute to a violation of water quality standards, the 199 department may allow their use. 200 (8) AUTHORITY.—The authority granted to the department 201 under this section is supplemental to the authority granted 202 under s. 403.067(8). 203 (9) RULES.—The department shall adopt rules to implement 204 this section. This section may not be implemented until the 205 department adopts such rules. 206 207 ================= T I T L E A M E N D M E N T ================ 208 And the title is amended as follows: 209 Delete lines 6 - 19 210 and insert: 211 quality enhancement areas and permits; providing 212 requirements for such water quality enhancement area 213 permits; requiring the Department of Environmental 214 Protection to establish water quality enhancement 215 service areas; providing requirements for the 216 boundaries of such areas; requiring applicants to 217 propose performance and success criteria monitoring 218 and verification plans that meet certain requirements; 219 requiring the Department of Environmental Protection 220 to revoke a permit under certain conditions; providing 221 requirements for enhancement credits; requiring the 222 department and water management districts to authorize 223 the sale and use of enhancement credits to 224 governmental entities to address certain adverse water 225 quality impacts and to meet certain water quality 226 requirements; requiring the department to maintain 227 enhancement credit ledgers; authorizing the department 228 to deny or authorize the use of enhancement credits 229 under certain circumstances; providing construction; 230 requiring the department to adopt rules; delaying 231 implementation of certain provisions until the 232 adoption of such rules; amending s. 403.892, F.S.; 233 correcting a