HB 1069 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Natural Resources recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to water resources; amending s. 163.3167,
12	F.S.; requiring local governments to include projected
13	water use in comprehensive plans; amending s. 367.081,
14	F.S.; revising procedure for fixing and changing rates to
15	include the recovery of costs of alternative water supply
16	facilities; amending s. 367.0814, F.S.; revising limit on
17	the amount of revenues received by a utility to qualify
18	for staff assistance in changing rates or charges;
19	creating s. 373.227, F.S.; providing legislative findings;
20	providing for a water conservation guidance manual;
21	providing applicability; amending s. 373.0361, F.S.;
22	providing for a public workshop on the development of
23	regional water supply plans that include the consideration
24	of population projections; providing for a list of water
25	source options in regional water supply plans; including
26	conservation measures in regional water supply plans;
27	amending s. 373.0421, F.S.; allowing for limited transfer
28	of water; providing conditions therefor; amending s.
29	373.1961, F.S.; providing funding priority; providing
30	conditions for certain projects to receive funding
31	assistance; amending s. 373.1963, F.S.; providing for
32	development of groundwater by regional water supply
33	authorities and providing for approval thereof; amending
34	s. 373.223, F.S.; prohibiting the sale of rights for
35	consumptive use water except under certain circumstances;
36	creating s. 373.2231, F.S.; providing for a Peace River
37	comprehensive study; creating s. 373.2234, F.S.; providing
38	for preferred water supply sources; amending s. 373.250,
39	F.S.; providing for the use of reclaimed water; amending
40	s. 373.536, F.S.; requiring the governing board of a water
41	control district to include certain information in its
42	annual budget request; providing legislative findings and
43	intent with regard to landscape irrigation design;
44	requiring water management districts to develop landscape
45	irrigation and xeriscape design standards; providing for
46	individual water meters in certain establishments;
47	providing exceptions; amending s. 378.212, F.S.; allowing
48	a variance from pts. III and IV of ch. 378, F.S., to
49	accommodate reclamation; amending s. 378.404, F.S.;
50	allowing variances for water supply development; amending
51	s. 403.064, F.S.; revising provisions relating to reuse
52	feasibility studies; providing for metering use of
53	reclaimed water and volume-based rates therefor; requiring
54	wastewater utilities to submit plans for metering use and
55	volume-based rate structures to the department; creating
56	s. 403.0645, F.S.; providing for reclaimed water use at
57	state facilities; requiring reports; amending s. 403.1835,
58	F.S.; providing for development of rate structures for
59	alternative water supply systems; providing criteria;
60	amending s. 403.1837, F.S.; deleting certain restrictions
61	on the issuance of bonds by the Florida Water Pollution
62	Control Financing Corporation; providing an effective
63	date.
64
65	Be It Enacted by the Legislature of the State of Florida:
66
67	Section 1. Subsection (13) is added to section 163.3167,
68	Florida Statutes, to read:
69	163.3167 Scope of act.--
70	(13) Each local government shall address in its
71	comprehensive plan, as enumerated in this chapter, the water
72	supply projects and sources necessary to meet and achieve the
73	existing and projected water use demand for the established
74	planning period, considering the applicable plan developed
75	pursuant to s. 373.0361.
76	Section 2. Subsection (2) of section 367.081, Florida
77	Statutes, is amended to read:
78	367.081 Rates; procedure for fixing and changing.--
79	(2)(a)1. The commission shall, either upon request or upon
80	its own motion, fix rates which are just, reasonable,
81	compensatory, and not unfairly discriminatory. In every such
82	proceeding, the commission shall consider the value and quality
83	of the service and the cost of providing the service, which
84	shall include, but not be limited to, debt interest; the
85	requirements of the utility for working capital; maintenance,
86	depreciation, tax, and operating expenses incurred in the
87	operation of all property used and useful in the public service;
88	and a fair return on the investment of the utility in property
89	used and useful in the public service. Pursuant to s.
90	373.1961(2)(l), the commission shall allow recovery of the full,
91	prudently incurred costs of alternative water supply facilities.
92	However, the commission shall not allow the inclusion of
93	contributions-in-aid-of-construction in the rate base of any
94	utility during a rate proceeding, nor shall the commission
95	impute prospective future contributions-in-aid-of-construction
96	against the utility's investment in property used and useful in
97	the public service; and accumulated depreciation on such
98	contributions-in-aid-of-construction shall not be used to reduce
99	the rate base, nor shall depreciation on such contributed assets
100	be considered a cost of providing utility service.
101	2. For purposes of such proceedings, the commission shall
102	consider utility property, including land acquired or facilities
103	constructed or to be constructed within a reasonable time in the
104	future, not to exceed 24 months after the end of the historic
105	base year used to set final rates unless a longer period is
106	approved by the commission, to be used and useful in the public
107	service, if:
108	a. Such property is needed to serve current customers;
109	b. Such property is needed to serve customers 5 years
110	after the end of the test year used in the commission's final
111	order on a rate request as provided in subsection (6) at a
112	growth rate for equivalent residential connections not to exceed
113	5 percent per year; or
114	c. Such property is needed to serve customers more than 5
115	full years after the end of the test year used in the
116	commission's final order on a rate request as provided in
117	subsection (6) only to the extent that the utility presents
118	clear and convincing evidence to justify such consideration.
119
120	Notwithstanding the provisions of this paragraph, the commission
121	shall approve rates for service which allow a utility to recover
122	from customers the full amount of environmental compliance
123	costs. Such rates may not include charges for allowances for
124	funds prudently invested or similar charges. For purposes of
125	this requirement, the term "environmental compliance costs"
126	includes all reasonable expenses and fair return on any prudent
127	investment incurred by a utility in complying with the
128	requirements or conditions contained in any permitting,
129	enforcement, or similar decisions of the United States
130	Environmental Protection Agency, the Department of Environmental
131	Protection, a water management district, or any other
132	governmental entity with similar regulatory jurisdiction.
133	(b) In establishing initial rates for a utility, the
134	commission may project the financial and operational data as set
135	out in paragraph (a) to a point in time when the utility is
136	expected to be operating at a reasonable level of capacity.
137	Section 3. Subsection (1) of section 367.0814, Florida
138	Statutes, is amended to read:
139	367.0814 Staff assistance in changing rates and charges;
140	interim rates.--
141	(1) The commission may establish rules by which a water or
142	wastewater utility whose gross annual revenues are $200,000
143	$150,000or less may request and obtain staff assistance for the
144	purpose of changing its rates and charges. A utility may request
145	staff assistance by filing an application with the commission.
146	Section 4. Section 373.227, Florida Statutes, is created
147	to read:
148	373.227 Water conservation guidance manual.--
149	(1) The Legislature recognizes that the proper conservation
150	of water is an important means of achieving the economical and
151	efficient utilization of water necessary to constitute a
152	reasonable-beneficial use. The Legislature encourages the
153	development and use of water conservation measures that are
154	effective, flexible, and affordable. In the context of the use
155	of water for public supply provided by a water utility, the
156	Legislature intends for a variety of conservation measures to be
157	available and used to encourage efficient water use. The
158	Legislature finds that the social, economic, and cultural
159	conditions of this state relating to the use of public water
160	supply vary by geographic region, and thus water utilities must
161	have the flexibility to tailor water conservation measures to
162	best suit their individual circumstances. For purposes of this
163	section, the term “public water supply facility” shall include
164	both publicly owned and privately owned public water supply
165	utilities.
166	(2) In order to implement the findings in subsection (1),
167	the Department of Environmental Protection shall develop a water
168	conservation guidance manual containing a menu of water
169	conservation measures from which public water supply utilities
170	may select in the development of a comprehensive, goal-based
171	water conservation program tailored for their individual service
172	areas that is effective and does not impose undue costs or
173	burdens on customers. The water conservation guidance manual
174	shall promote statewide consistency in the approach to utility
175	conservation while maintaining appropriate flexibility. The
176	manual may contain measures such as: water conservation audits,
177	informative billing practices to educate customers on their
178	patterns of water use, the costs of water, and ways to conserve
179	water; ordinances requiring low-flow plumbing fixtures and
180	efficient landscape irrigation; rebate programs for the
181	installation of water-saving plumbing or appliances; general
182	water conservation educational programs including bill inserts;
183	measures to promote the more effective and efficient reuse of
184	reclaimed water; water conservation or drought rate structures
185	that encourage customers to conserve water through appropriate
186	price signals; and programs to apply utility profits generated
187	through conservation and drought rates to additional water
188	conservation programs or water supply development. The manual
189	shall specifically state that it is the responsibility of the
190	appropriate utility to determine the specific rates it will
191	charge its customers and that the role of the department or
192	water management district is confined to the review of those
193	rate structures to determine whether they encourage water
194	conservation. The water conservation guidance manual shall also
195	state that a utility need not adopt a water conservation or
196	drought rate structure if the utility employs other measures
197	that are equally or more effective. The manual shall provide for
198	different levels of complexity and expected levels of effort in
199	conservation programs depending on the size of the utility.
200	However, all utilities will be expected to have at least basic
201	programs in each of the following areas:
202	(a) Individual metering, to the extent feasible as
203	determined by the utility.
204	(b) Water accounting and loss control.
205	(c) Cost of service accounting and metered rates for
206	water.
207	(d) Information programs on water conservation.
208	(e) Landscaping water efficiency programs.
209	(3) The Department of Environmental Protection shall
210	develop the water conservation guidance manual no later than
211	June 15, 2004. The department shall develop the manual in
212	consultation with interested parties, which, at a minimum, shall
213	include representatives from the water management districts,
214	three utilities that are members of the American Water Works
215	Association, two utilities that are members of the Florida Water
216	Environment Association, a representative of the Florida Chamber
217	of Commerce, representatives of counties and municipalities, and
218	representatives of environmental organizations. By December 15,
219	2004, the department shall adopt the water conservation guidance
220	manual by rule. Once the department adopts the water
221	conservation guidance manual by rule, the water management
222	districts may apply the manual in the review of water
223	conservation requirements for obtaining a permit pursuant to
224	part II without the need to adopt the manual pursuant to s.
225	120.54. Once the water conservation guidance manual is adopted
226	by rule, a public water supply utility may choose to comply with
227	the standard water conservation requirements adopted by the
228	appropriate water management district for obtaining a
229	consumptive use permit from that district or may choose to
230	develop a comprehensive, goal-based water conservation program
231	from the options contained in the manual. If the utility chooses
232	to design a comprehensive water conservation program based on
233	the water conservation guidance manual, the proposed program
234	must include the following:
235	(a) An inventory of water system characteristics and
236	conservation opportunities.
237	(b) Demand forecasts.
238	(c) An explanation of the proposed program.
239	(d) Specific numeric water conservation targets for the
240	utility as a whole and for appropriate customer classes, with a
241	justification of why the numeric targets are appropriate based
242	on that utility’s particular customer characteristics and
243	conservation opportunities.
244	(e) A demonstration that the program will promote
245	effective water conservation at least as well as standard water
246	use conservation requirements adopted by the appropriate water
247	management district.
248	(f) A timetable for the utility and the water management
249	district to evaluate progress in meeting the water conservation
250	targets and making needed program modifications.
251	(4) If the water management district determines that the
252	proposed conservation program is consistent with the water
253	conservation guidance manual and contains the elements specified
254	in subsection (3), it shall approve the proposed program and
255	shall satisfy water conservation requirements imposed as a
256	condition of obtaining a permit under part II. The department,
257	in consultation with the parties specified in subsection (3),
258	may periodically amend or revise the water conservation guidance
259	manual rule as appropriate to reflect changed circumstances or
260	new technologies or approaches. When the water conservation
261	guidance manual is amended or revised, the water management
262	districts shall approve the amendments or revisions within 6
263	months after the amendments or revisions are made. The findings
264	and provisions in this section shall not be construed to apply
265	to users of water other than public and private water supply
266	utilities.
267	Section 5. Subsection (1), paragraph (a) of subsection
268	(2), and subsections (5) and (6) of section 373.0361, Florida
269	Statutes, are amended, and paragraph (h) is added to subsection
270	(2) of said section, to read:
271	373.0361 Regional water supply planning.--
272	(1) By October 1, 1998, the governing board shall initiate
273	water supply planning for each water supply planning region
274	identified in the district water management plan under s.
275	373.036, where it determines that sources of water are not
276	adequate for the planning period to supply water for all
277	existing and projected reasonable-beneficial uses and to sustain
278	the water resources and related natural systems. The planning
279	must be conducted in an open public process, in coordination and
280	cooperation with local governments, regional water supply
281	authorities, government-owned and privately owned water
282	utilities, self-suppliers, and other affected and interested
283	parties. During development but prior to completion of the
284	regional water supply plan, the district must conduct at least
285	one public workshop to discuss the technical data and modeling
286	tools anticipated to be used to support the plan.A
287	determination by the governing board that initiation of a
288	regional water supply plan for a specific planning region is not
289	needed pursuant to this section shall be subject to s. 120.569.
290	The governing board shall reevaluate such a determination at
291	least once every 5 years and shall initiate a regional water
292	supply plan, if needed, pursuant to this subsection.
293	(2) Each regional water supply plan shall be based on at
294	least a 20-year planning period and shall include, but not be
295	limited to:
296	(a) A water supply development component that includes:
297	1. A quantification of the water supply needs for all
298	existing and reasonably projected future uses within the
299	planning horizon. The level-of-certainty planning goal
300	associated with identifying the water supply needs of existing
301	and future reasonable-beneficial uses shall be based upon
302	meeting those needs for a 1-in-10-year drought event. Population
303	projections used for determining public water supply needs shall
304	be based upon the best available data. In determining the best
305	available data, the district shall consider the University of
306	Florida’s Bureau of Economic and Business Research (BEBR) medium
307	population projections and any population projection data and
308	analysis submitted by a local government pursuant to the public
309	workshop described in subsection (1) when such data and analysis
310	support the local government’s comprehensive plan. Any
311	adjustment of or deviation from the BEBR projections shall be
312	fully described and the original BEBR data shall be presented
313	along with the adjusted data.
314	2. A list of water source options for water supply
315	development, including traditional and alternative source
316	optionssources, from which local government, government-owned
317	and privately owned utilities, self-suppliers, and others may
318	choose, for water supply development the total capacity ofwhich
319	will, in conjunction with water conservation and other demand
320	management measures,exceed the needs identified in subparagraph
321	1.
322	3. For each option listed in subparagraph 2., the
323	estimated amount of water available for use and the estimated
324	costs of and potential sources of funding for water supply
325	development.
326	4. A list of water supply development projects that meet
327	the criteria in s. 373.0831(4).
328	(h) An analysis, developed in cooperation with the
329	department, of areas or instances in which the variance
330	provisions of s. 378.212(1)(g) may be used to create water
331	supply development or water resource development projects.
332
333	Within the boundaries of a regional water supply authority, the
334	water supply development component of the regional water supply
335	plan shall be developed jointly by such authority and the
336	district.
337	(5) By November 15, 1997, and Annually and in conjunction
338	with the reporting requirements of s. 373.536(6)(a)4.
339	thereafter, the department shall submit to the Governor and the
340	Legislature a report on the status of regional water supply
341	planning in each district. The report shall include:
342	(a) A compilation of the estimated costs of and potential
343	sources of funding for water resource development and water
344	supply development projects, as identified in the water
345	management district regional water supply plans.
346	(b) A description of each district's progress toward
347	achieving its water resource development objectives, as directed
348	by s. 373.0831(3), including the district's implementation of
349	its 5-year water resource development work program.
350	(c) An assessment of the overall progress being made to
351	develop a water supply that is consistent with regional water
352	supply plans to meet existing and future reasonable-beneficial
353	needs during a 1-in-10-year drought.
354	(6) Nothing contained in the water supply development
355	component of the district water management plan shall be
356	construed to require local governments, government-owned or
357	privately owned water utilities, self-suppliers, or other water
358	suppliers to select a water supply development option identified
359	in the component merely because it is identified in the plan,
360	nor may the plan be used in the review of permits under part II
361	unless the plan, or an applicable portion thereof, has been
362	adopted by rule. However, this subsection does not prohibit a
363	water management district from employing the data or other
364	information used to establish the plan in reviewing permits
365	under part II, nor shall itnotbe construed to limit the
366	authority of the department or governing board under part II.
367	Section 6. Subsection (3) of section 373.0421, Florida
368	Statutes, is renumbered as subsection (4), and a new subsection
369	(3) is added to said section, to read:
370	373.0421 Establishment and implementation of minimum flows
371	and levels.--
372	(3) Notwithstanding s. 373.223(5)(a), as part of a minimum
373	flow and level recovery or prevention strategy, the Southwest
374	Florida Water Management District may adopt rules to provide for
375	the transfer of permitted, previously used quantities of water
376	from one permittee to a new permittee within the Southern Water
377	Use Caution Area under the following conditions:
378	(a) The quantity of water transferred is from a source for
379	which the district will not allow withdrawals of new quantities
380	of water.
381	(b) The transferred withdrawal meets the criteria of part
382	II and is approved by the district.
383	(c) The duration of withdrawal of the transferred quantity
384	of water does not exceed the duration of the permit from which
385	the quantity of water is transferred.
386	Section 7. Subsection (2) of section 373.1961, Florida
387	Statutes, is amended to read:
388	373.1961 Water production.--
389	(2) The Legislature finds that, due to a combination of
390	factors, vastly increased demands have been placed on natural
391	supplies of fresh water, and that, absent increased development
392	of alternative water supplies, such demands may increase in the
393	future. The Legislature also finds that potential exists in the
394	state for the production of significant quantities of
395	alternative water supplies, including reclaimed water, and that
396	water production includes the development of alternative water
397	supplies, including reclaimed water, for appropriate uses. It is
398	the intent of the Legislature that utilities develop reclaimed
399	water systems, where reclaimed water is the most appropriate
400	alternative water supply option, to deliver reclaimed water to
401	as many users as possible through the most cost-effective means,
402	and to construct reclaimed water system infrastructure to their
403	owned or operated properties and facilities where they have
404	reclamation capability. It is also the intent of the Legislature
405	that the water management districts which levy ad valorem taxes
406	for water management purposes should share a percentage of those
407	tax revenues with water providers and users, including local
408	governments, water, wastewater, and reuse utilities, municipal,
409	industrial, and agricultural water users, and other public and
410	private water users, to be used to supplement other funding
411	sources in the development of alternative water supplies. The
412	Legislature finds that public moneys or services provided to
413	private entities for such uses constitute public purposes which
414	are in the public interest. In order to further the development
415	and use of alternative water supply systems, including reclaimed
416	water systems, the Legislature provides the following:
417	(a) The governing boards of the water management districts
418	where water resource caution areas have been designated shall
419	include in their annual budgets an amount for the development of
420	alternative water supply systems, including reclaimed water
421	systems, pursuant to the requirements of this subsection.
422	Beginning in 1996, such amounts shall be made available to water
423	providers and users no later than December 31 of each year,
424	through grants, matching grants, revolving loans, or the use of
425	district lands or facilities pursuant to the requirements of
426	this subsection and guidelines established by the districts. In
427	making grants or loans, funding priority shall be given to
428	projects in accordance with s. 373.0831(4).
429	(b) It is the intent of the Legislature that for each
430	reclaimed water utility, or any other utility, which receives
431	funds pursuant to this subsection, the appropriate rate-setting
432	authorities should develop rate structures for all water,
433	wastewater, and reclaimed water and other alternative water
434	supply utilities in the service area of the funded utility,
435	which accomplish the following:
436	1. Provide meaningful progress toward the development and
437	implementation of alternative water supply systems, including
438	reclaimed water systems;
439	2. Promote the conservation of fresh water withdrawn from
440	natural systems;
441	3. Provide for an appropriate distribution of costs for
442	all water, wastewater, and alternative water supply utilities,
443	including reclaimed water utilities, among all of the users of
444	those utilities; and
445	4. Prohibit rate discrimination within classes of utility
446	users.
447	(c) Funding assistance provided by the water management
448	districts for a water reuse system project shall include the
449	following grant or loan conditions for that project when the
450	water management district determines such conditions will
451	encourage water use efficiency:
452	1. Metering of reclaimed water use for the following
453	activities: residential irrigation, agricultural irrigation,
454	industrial uses except for electric utilities as defined in s.
455	366.02(2), golf course irrigation, landscape irrigation,
456	irrigation of other public access areas, commercial and
457	institutional uses such as toilet flushing, and transfers to
458	other reclaimed water utilities.
459	2. Implementation of reclaimed water rate structures based
460	on actual use of reclaimed water for the types of reuse
461	activities listed in subparagraph 1.
462	3. Implementation of education programs to inform the
463	public about water issues, water conservation, and the
464	importance and proper use of reclaimed water.
465	4. Development of location data for key reuse facilities.
466	(d)(c)In order to be eligible for funding pursuant to
467	this subsection, a project must be consistent with a local
468	government comprehensive plan and the governing body of the
469	local government must require all appropriate new facilities
470	within the project's service area to connect to and use the
471	project's alternative water supplies. The appropriate local
472	government must provide written notification to the appropriate
473	district that the proposed project is consistent with the local
474	government comprehensive plan.
475	(e)(d)Any and all revenues disbursed pursuant to this
476	subsection shall be applied only for the payment of capital or
477	infrastructure costs for the construction of alternative water
478	supply systems that provide alternative water supplies.
479	(f)(e)By January 1 of each year, the governing boards
480	shall make available written guidelines for the disbursal of
481	revenues pursuant to this subsection. Such guidelines shall
482	include at minimum:
483	1. An application process and a deadline for filing
484	applications annually.
485	2. A process for determining project eligibility pursuant
486	to the requirements of paragraphs (d)(c) and (e)(d).
487	3. A process and criteria for funding projects pursuant to
488	this subsection that cross district boundaries or that serve
489	more than one district.
490	(g)(f)The governing board of each water management
491	district shall establish an alternative water supplies grants
492	advisory committee to recommend to the governing board projects
493	for funding pursuant to this subsection. The advisory committee
494	members shall include, but not be limited to, one or more
495	representatives of county, municipal, and investor-owned private
496	utilities, and may include, but not be limited to,
497	representatives of agricultural interests and environmental
498	interests. Each committee member shall represent his or her
499	interest group as a whole and shall not represent any specific
500	entity. The committee shall apply the guidelines and project
501	eligibility criteria established by the governing board in
502	reviewing proposed projects. After one or more hearings to
503	solicit public input on eligible projects, the committee shall
504	rank the eligible projects and shall submit them to the
505	governing board for final funding approval. The advisory
506	committee may submit to the governing board more projects than
507	the available grant money would fund.
508	(h)(g)All revenues made available annually pursuant to
509	this subsection must be encumbered annually by the governing
510	board if it approves projects sufficient to expend the available
511	revenues. Funds must be disbursed within 36 months after
512	encumbrance.
513	(i)(h)For purposes of this subsection, alternative water
514	supplies are supplies of water that have been reclaimed after
515	one or more public supply, municipal, industrial, commercial, or
516	agricultural uses, or are supplies of stormwater, or brackish or
517	salt water, that have been treated in accordance with applicable
518	rules and standards sufficient to supply the intended use.
519	(j)(i)This subsection shall not be subject to the
520	rulemaking requirements of chapter 120.
521	(k)(j)By January 30 of each year, each water management
522	district shall submit an annual report to the Governor, the
523	President of the Senate, and the Speaker of the House of
524	Representatives which accounts for the disbursal of all budgeted
525	amounts pursuant to this subsection. Such report shall describe
526	all projects funded and shall account separately for moneys
527	provided through grants, matching grants, revolving loans, and
528	the use of district lands or facilities.
529	(l)(k)The Florida Public Service Commission shall allow
530	entities under its jurisdiction constructing alternative water
531	supply facilities, including but not limited to aquifer storage
532	and recovery wells, to recover the full, prudently incurred cost
533	of such facilities through their rate structure. Every component
534	of an alternative water supply facility constructed by an
535	investor-owned utility shall be recovered in current rates.
536	Section 8. Subsection (9) is added to section 373.1963,
537	Florida Statutes, to read:
538	373.1963 Assistance to West Coast Regional Water Supply
539	Authority.--
540	(9) The water supply authority is encouraged to pursue
541	alternative water supplies but may pursue groundwater
542	development within its member governments with the contributing
543	member government’s approval.
544	Section 9. Subsection (5) is added to section 373.223,
545	Florida Statutes, to read:
546	373.223 Conditions for a permit.--
547	(5)(a) Water use rights granted under a permit for the
548	consumptive use of water shall not be sold, except as provided
549	in s. 373.0421(3), and except when ownership of a consumptive
550	use permit is transferred as a result of the sale of real
551	property to which the consumptive use permit is attached,
552	provided that the water is to be used for the same purpose for
553	which the permit was granted.
554	(b) The selling or transferring by a permittee of water
555	that is used as an ingredient in a packaged food product
556	regulated by the Unites States Food and Drug Administration or
557	the Florida Department of Agriculture does not constitute a
558	proposed transfer or new use within the meaning of this section.
559	(c) This subsection shall not affect the authority of the
560	water management districts to transfer a permit from one entity
561	to another for the same use, in the same amounts, in the same
562	location, and subject to the same conditions.
563	(d) The sale of water by a local government does not
564	constitute a sale of water rights within the meaning of this
565	section.
566	Section 10. Section 373.2231, Florida Statutes, is created
567	to read:
568	373.2231 Peace River comprehensive study.--The Legislature
569	acknowledges that there are many and varied demands on the
570	available water supplies on the Peace River watershed from
571	industry, agriculture, and commercial and residential
572	development. The cumulative impact of all these demands has the
573	potential to significantly reduce the fresh water flows and
574	levels in the Peace River. Accordingly, the Legislature hereby
575	directs the Southwest Florida Water Management District to
576	conduct a comprehensive study of the cumulative impacts of the
577	existing and projected demands on the water resources of the
578	Peace River watershed. The study shall be completed and a report
579	of the study submitted to the Governor, the President of the
580	Senate, and the Speaker of the House of Representatives by June
581	1, 2004.
582	Section 11. Section 373.2234, Florida Statutes, is created
583	to read:
584	373.2234 Preferred water supply sources.--The governing
585	board of the district is authorized to adopt rules identifying
586	preferred water supply sources for which there is sufficient
587	data to establish that the source can be used to provide a
588	substantial new water supply to meet existing and reasonably
589	anticipated water needs in a water supply planning region
590	identified pursuant to s. 373.0361(1) while sustaining the water
591	resources and related natural systems. Such rules shall, at a
592	minimum, contain a description of the source and an assessment
593	of the water the source is projected to produce. If a
594	consumptive use permit applicant proposes to use such a source
595	consistent with the assessment, the proposed use shall be
596	subject to the provisions of s. 373.223(1), but such proposed
597	use shall be a factor deemed to be consistent with the public
598	interest pursuant to s. 373.223(1)(c). A consumptive use permit
599	issued approving the use of such a source shall be for at least
600	20 years and may be subject to the provisions of s. 373.226(3).
601	However, nothing in this section shall be construed to provide
602	that the use of nonpreferred sources must receive a permit
603	duration of less than 20 years or that such nonpreferred sources
604	or projects are not consistent with the public interest.
605	Section 12. Paragraph (c) is added to subsection (2) of
606	section 373.250, Florida Statutes, to read:
607	373.250 Reuse of reclaimed water.--
608	(2)
609	(c) A water management district may require the use of
610	reclaimed water in lieu of surface water or groundwater when the
611	use of uncommitted reclaimed water is environmentally,
612	economically, and technically feasible. However, while
613	recognizing that the state’s surface water and groundwater are
614	public resources, nothing in this paragraph shall be construed
615	to give a water management district the authority to require a
616	provider of reclaimed water to redirect reclaimed water from one
617	user to another or to provide uncommitted water to a specific
618	user if such water is anticipated to be used by the provider, or
619	a different user selected by the provider, within a reasonable
620	amount of time.
621	Section 13. Paragraph (a) of subsection (6) of section
622	373.536, Florida Statutes, is amended to read:
623	373.536 District budget and hearing thereon.--
624	(6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
625	WATER RESOURCE DEVELOPMENT WORK PROGRAM.--
626	(a) Each district must, by the date specified for each
627	item, furnish copies of the following documents to the Governor,
628	the President of the Senate, the Speaker of the House of
629	Representatives, the chairs of all legislative committees and
630	subcommittees having substantive or fiscal jurisdiction over the
631	districts, as determined by the President of the Senate or the
632	Speaker of the House of Representatives as applicable, the
633	secretary of the department, and the governing board of each
634	county in which the district has jurisdiction or derives any
635	funds for the operations of the district:
636	1. The adopted budget, to be furnished within 10 days
637	after its adoption.
638	2. A financial audit of its accounts and records, to be
639	furnished within 10 days after its acceptance by the governing
640	board. The audit must be conducted in accordance with the
641	provisions of s. 11.45 and the rules adopted thereunder. In
642	addition to the entities named above, the district must provide
643	a copy of the audit to the Auditor General within 10 days after
644	its acceptance by the governing board.
645	3. A 5-year capital improvements plan, to be furnished
646	within 45 days after the adoption of the final budget. The plan
647	must include expected sources of revenue for planned
648	improvements and must be prepared in a manner comparable to the
649	fixed capital outlay format set forth in s. 216.043.
650	4. A 5-year water resource development work program to be
651	furnished within 45 days after the adoption of the final budget.
652	The program must describe the district's implementation strategy
653	for the water resource development component of each approved
654	regional water supply plan developed or revised under s.
655	373.0361. The work program must address all the elements of the
656	water resource development component in the district's approved
657	regional water supply plans and must identify which projects in
658	the work program will provide water, explain how each water
659	resource development project will produce additional water
660	available for consumptive uses, estimate the quantity of water
661	to be produced by each project, and assess the contribution of
662	the district’s water resource development work program in
663	providing sufficient water to meet the water supply needs of
664	existing and future reasonable-beneficial uses for a 1-in-10-
665	year drought event. Within 45 days after its submittal, the
666	department shall review the proposed work program and submit its
667	findings, questions, and comments to the district. The review
668	must include a written evaluation of the program's consistency
669	with the furtherance of the district's approved regional water
670	supply plans, and the adequacy of proposed expenditures. As part
671	of the review, the department shall give interested parties the
672	opportunity to provide written comments on each district's
673	proposed work program. Within 60 days after receipt of the
674	department's evaluation, the governing board shall state in
675	writing to the department which changes recommended in the
676	evaluation it will incorporate into its work program or specify
677	the reasons for not incorporating the changes. The department
678	shall include the district's responses in a final evaluation
679	report and shall submit a copy of the report to the Governor,
680	the President of the Senate, and the Speaker of the House of
681	Representatives.
682	(b) If any entity listed in paragraph (a) provides written
683	comments to the district regarding any document furnished under
684	this subsection, the district must respond to the comments in
685	writing and furnish copies of the comments and written responses
686	to the other entities.
687	Section 14. Landscape irrigation design.--
688	(1) The Legislature finds that multiple areas throughout
689	the state have been identified by water management districts as
690	water resource caution areas, which indicates that in the near
691	future water demand in those areas will exceed the current
692	available water supply and that conservation is one of the
693	mechanisms by which future water demand will be met.
694	(2) The Legislature finds that landscape irrigation
695	comprises a significant portion of water use and that the
696	current typical landscape irrigation system and xeriscape
697	designs offer significant potential water conservation benefits.
698	(3) It is the intent of the Legislature to improve
699	landscape irrigation water use efficiency by ensuring landscape
700	irrigation systems meet or exceed minimum design criteria.
701	(4) Water management districts shall develop and adopt by
702	rule landscape irrigation and xeriscape design standards for new
703	construction that incorporate a landscape irrigation system. The
704	standards shall be based on the irrigation code defined in the
705	Florida Building Code, Plumber’s Volume, Appendix F. Such design
706	standards should promote the effective and efficient use of
707	irrigation water and include a consideration of local
708	demographic, hydrologic, and other considerations as they apply
709	to landscape irrigation water use. When adopting an ordinance or
710	regulation, local governments shall use these approved
711	irrigation design standards.
712	(5) Water management districts shall work with the Florida
713	Chapter of the American Society of Landscape Architects, the
714	Florida Irrigation Society, the Florida Nurserymen and Growers
715	Association, the Department of Agriculture and Consumer
716	Services, the Institute of Food and Agricultural Sciences, the
717	Department of Environmental Protection, the Florida League of
718	Cities, and the Florida Association of Counties to develop
719	scientifically-based model guidelines for urban, commercial, and
720	residential landscape irrigation, including drip irrigation, for
721	plants, trees, sod, and other landscaping. Local governments
722	shall use the scientific information when developing landscape
723	irrigation ordinances or guidelines. Every 3 years, the agencies
724	and entities specified in this subsection shall review the model
725	guidelines to determine whether new research findings require a
726	change or modification of the guidelines.
727	Section 15. Water metering.--Where economically and
728	logistically feasible, individual water meters shall be required
729	for each new separate occupancy unit of commercial
730	establishments; multifamily residential buildings; condominiums
731	and cooperatives; marinas; and trailer, mobile home, and
732	recreational vehicle parks for which construction is commenced
733	after July 1, 2003. The applicable water utility is not required
734	to assume ownership, maintenance, or billing responsibility for
735	any submeters resulting from such individual metering. A utility
736	may require a master meter at such establishments for purposes
737	of billing a single entity, whereupon the entity may in turn
738	bill the owners of the individual submeters. Individual water
739	meters shall not be required:
740	(1) In those portions of a commercial establishment where
741	the floor space dimensions or physical configuration of the
742	units is subject to alteration as evidenced by nonstructural
743	element partition walls, unless the utility determines that
744	adequate provisions can be made to modify the metering to
745	accurately reflect such alterations.
746	(2) For water used in specialized-use housing such as
747	hospitals, nursing homes, assisted living facilities located on
748	the same premises as and operated in conjunction with a nursing
749	home or other health care facility providing at least the same
750	level and types of service as a nursing home, convalescent
751	homes, facilities certified under chapter 651, Florida Statutes,
752	government financed or subsidized housing for the elderly or
753	disabled, college dormitories, convents, sorority houses,
754	fraternity houses, motels, hotels, or similar facilities.
755	(3) For separate specifically designated areas for
756	overnight occupancy at trailer, mobile home, and recreational
757	vehicle parks where permanent residency is not established and
758	for marinas where living on board is prohibited by ordinance,
759	deed restriction, or other permanent means.
760	(4) For sites in mobile home parks that were permitted for
761	occupancy by the Department of Health prior to July 1, 2003.
762	(5) For timeshare developments, provided that all of the
763	occupancy units are committed to a timeshare plan as defined in
764	and regulated by chapter 721, Florida Statutes, and none of the
765	occupancy units is used for permanent occupancy.
766	Section 16. Subsection (1) of section 378.212, Florida
767	Statutes, is amended to read:
768	378.212 Variances.--
769	(1) Upon application, the secretary may grant a variance
770	from the provisions of this part, part IV,or the rules adopted
771	pursuant thereto. Variances and renewals thereof may be granted
772	for any one of the following reasons:
773	(a) There is no practicable means known or available to
774	comply with the provisions of this part or the rules adopted
775	pursuant thereto.
776	(b) Compliance with a particular requirement or
777	requirements from which a variance is sought will necessitate
778	the taking of measures which must be spread over a considerable
779	period of time. A variance granted for this reason shall
780	prescribe a timetable for the taking of the measures required.
781	(c) To relieve or prevent hardship, including economic
782	hardship, of a kind other than those provided for in paragraphs
783	(a) and (b).
784	(d) To accommodate specific phosphate mining, processing
785	or chemical plant uses that otherwise would be inconsistent with
786	the requirements of this part.
787	(e) To provide for an experimental technique that would
788	advance the knowledge of reclamation and restoration methods.
789	(f) To accommodate projects, including those proposing
790	offsite mitigation, that provide a significant regional benefit
791	for wildlife and the environment.
792	(g) To accommodate reclamation that provides for water
793	supply development or water resource development, consistent
794	with the applicable regional water supply plan approved pursuant
795	to s. 373.0361, provided regional water resources are not
796	adversely affected.
797	Section 17. Subsection (9) is added to section 378.404,
798	Florida Statutes, to read:
799	378.404 Department of Environmental Protection; powers and
800	duties.--The department shall have the following powers and
801	duties:
802	(9) To grant variances from the provisions of this part to
803	accommodate reclamation that provides for water supply
804	development or water resource development, consistent with the
805	applicable regional water supply plan approved pursuant to s.
806	373.0361, appropriate stormwater management, and wildlife
807	habitat or recreation, provided that regional water resources
808	and public health and safety are not adversely affected.
809	Section 18. Subsection (6) of section 403.064, Florida
810	Statutes, is amended, and subsection (16) is added to said
811	section, to read:
812	403.064 Reuse of reclaimed water.--
813	(6) A reuse feasibility study prepared under subsection
814	(2) satisfies a water management district requirement to conduct
815	a reuse feasibility study imposed on a local government or
816	utility that has responsibility for wastewater management, and
817	the conclusions of the study shall be given significant
818	consideration in an analysis of the feasibility of providing
819	reclaimed water for reuse under part II of chapter 373. A water
820	management district shall not require a separate study when a
821	reuse feasibility study has been completed under subsection (2).
822	(16) Utilities implementing reuse projects are encouraged
823	to meter use of reclaimed water by all end users and, except for
824	electric utilities as defined in s. 366.02(2), to charge for the
825	use of reclaimed water based on the actual volume used when such
826	metering and charges can be shown to encourage water
827	conservation. Metering and the use of volume-based rates are
828	effective water management tools for the following reuse
829	activities: residential irrigation, agricultural irrigation,
830	industrial uses, golf course irrigation, landscape irrigation,
831	irrigation of other public access areas, commercial and
832	institutional uses such as toilet flushing, and transfers to
833	other reclaimed water utilities. Beginning with the submittal
834	due on January 1, 2004, each domestic wastewater utility that
835	provides reclaimed water for the reuse activities listed in this
836	section shall include a summary of its metering and rate
837	structure as part of its annual reuse report to the department.
838	Section 19. Section 403.0645, Florida Statutes, is created
839	to read:
840	403.0645 Reclaimed water use at state facilities.--
841	(1) The encouragement and promotion of reuse of reclaimed
842	water has been established as a state objective in ss. 373.250
843	and 403.064. Reuse has become an integral part of water and
844	wastewater management in Florida, and Florida is recognized as a
845	national leader in water reuse.
846	(2) The state and various state agencies and water
847	management districts should take a leadership role in using
848	reclaimed water in lieu of other water sources. Use of reclaimed
849	water by state agencies and facilities will conserve potable
850	water and will serve an important public education function.
851	(3) All state agencies and water management districts are
852	directed to use reclaimed water to the greatest extent
853	practicable for landscape irrigation, toilet flushing, aesthetic
854	features such as decorative ponds and fountains, cooling water,
855	and other useful purposes allowed by department rules at state
856	facilities, including, but not limited to, parks, rest areas,
857	visitor welcome centers, buildings, college campuses, and other
858	facilities.
859	(4) Each state agency and water management district shall
860	submit to the Secretary of Environmental Protection by February
861	1 of each year a summary of activities designed to utilize
862	reclaimed water at its facilities along with a summary of the
863	amounts of reclaimed water actually used for beneficial
864	purposes.
865	Section 20. Paragraph (b) of subsection (3) of section
866	403.1835, Florida Statutes, is amended, and subsection (12) is
867	added to said section, to read:
868	403.1835 Water pollution control financial assistance.--
869	(3) The department may provide financial assistance
870	through any program authorized under s. 603 of the Federal Water
871	Pollution Control Act (Clean Water Act), Pub. L. No. 92-500, as
872	amended, including, but not limited to, making grants and loans,
873	providing loan guarantees, purchasing loan insurance or other
874	credit enhancements, and buying or refinancing local debt. This
875	financial assistance must be administered in accordance with
876	this section and applicable federal authorities. The department
877	shall administer all programs operated from funds secured
878	through the activities of the Florida Water Pollution Control
879	Financing Corporation under s. 403.1837, to fulfill the purposes
880	of this section.
881	(b) The department may make or request the corporation to
882	make loans, grants, and deposits to other entities eligible to
883	participate in the financial assistance programs authorized
884	under the Federal Water Pollution Control Act, or as a result of
885	other federal action, which entities may pledge any revenue
886	available to them to repay any funds borrowed. Notwithstanding
887	s. 18.10, the department may make deposits to financial
888	institutions that earn less than the prevailing rate for United
889	States Treasury securities with corresponding maturities for the
890	purpose of enabling such financial institutions to make below-
891	market interest rate loans to entities qualified to receive
892	loans under this section and the rules of the department.
893	(12)(a) It is the intent of the Legislature that for each
894	reclaimed water utility or any other utility that receives funds
895	pursuant to this subsection, the appropriate rate-setting
896	authorities should develop rate structures for all water,
897	wastewater, and reclaimed water and other alternative water
898	supply utilities in the service area of the funded utility which
899	accomplish the following:
900	1. Provide meaningful progress toward the development and
901	implementation of alternative water supply systems, including
902	reclaimed water systems.
903	2. Promote the conservation of fresh water withdrawn from
904	natural systems.
905	3. Provide for an appropriate distribution of costs for
906	all water, wastewater, and alternative water supply utilities,
907	including reclaimed water utilities, among all of the users of
908	those utilities.
909	(b) Funding assistance provided for a water reuse system
910	project shall include the following loan conditions for that
911	project where such conditions will encourage water use
912	efficiency:
913	1. Metering of reclaimed water use for the following
914	activities: residential irrigation, agricultural irrigation,
915	industrial uses except for electric utilities as defined in s.
916	366.02(2), golf course irrigation, landscape irrigation,
917	irrigation of other public access areas, and commercial uses.
918	2. Implementation of reclaimed water rate structures based
919	on actual use of reclaimed water for the reuse types listed in
920	subparagraph 1.
921	3. Implementation of education programs to inform the
922	public about water issues, water conservation, and the
923	importance and proper use of reclaimed water.
924	Section 21. Subsection (6) of section 403.1837, Florida
925	Statutes, is amended to read:
926	403.1837 Florida Water Pollution Control Financing
927	Corporation.--
928	(6) The corporation may issue and incur notes, bonds,
929	certificates of indebtedness, or other obligations or evidences
930	of indebtedness payable from and secured by amounts received
931	from payment of loans and other moneys received by the
932	corporation, including, but not limited to, amounts payable to
933	the corporation by the department under a service contract
934	entered into under subsection (5). The corporation may not issue
935	bonds in excess of an amount authorized by general law or an
936	appropriations act except to refund previously issued bonds. The
937	corporation may issue bonds in amounts not exceeding $50 million
938	in fiscal year 2000-2001, $75 million in fiscal year 2001-2002,
939	and $100 million in fiscal year 2002-2003.The proceeds of the
940	bonds may be used for the purpose of providing funds for
941	projects and activities provided for in subsection (1) or for
942	refunding bonds previously issued by the corporation. The
943	corporation may select a financing team and issue obligations
944	through competitive bidding or negotiated contracts, whichever
945	is most cost-effective. Any such indebtedness of the corporation
946	does not constitute a debt or obligation of the state or a
947	pledge of the faith and credit or taxing power of the state.
948	Section 22. This act shall take effect upon becoming a
949	law.