HB 1459 2003
1	A bill to be entitled
2	An act relating to water supplies; providing legislative
3	findings and intent; providing for the development of a
4	water conservation guidance manual by the Department of
5	Environmental Protection; providing for purpose and
6	contents of the manual and requirements with respect
7	thereto; requiring water management districts to adopt the
8	manual in their rules by a specified date; requiring
9	public water supply utilities to develop water
10	conservation programs based upon options contained in the
11	manual; amending s. 373.023, F.S.; revising scope and
12	applicability of the Florida Water Resources Act of 1972
13	to exclude from regulation under the act water produced by
14	domestic wastewater treatment facilities; amending s.
15	373.0361, F.S.; providing additional components of
16	regional water supply plans; providing that a district
17	water management plan may not be used as criteria for the
18	review of permits for consumptive uses of water unless the
19	plan or applicable portion thereof has been adopted by
20	rule; amending s. 373.0831, F.S.; revising the criteria by
21	which water supply development projects may receive
22	priority consideration for funding assistance; providing
23	for permitting and funding of a proposed alternative water
24	supply project identified in the relevant approved
25	regional water supply plan; amending s. 373.1961, F.S.;
26	encouraging water management district governing boards to
27	establish revolving loan trust funds for specified
28	purposes; amending s. 373.223, F.S.; including certain
29	utilities within provisions which require the
30	consideration of specified factors and conditions by a
31	water management governing board or the Department of
32	Environmental Protection prior to approval of a water use
33	permit; amending s. 373.236, F.S.; providing for
34	consumptive use permits of extended duration where
35	specified conservation measures are in effect; amending s.
36	373.246, F.S.; providing requirements of a permittee with
37	respect to compliance with a water shortage order;
38	amending s. 373.250, F.S.; providing construction with
39	respect to provisions governing reuse of reclaimed water;
40	amending s. 378.212, F.S.; authorizing the granting of a
41	variance from pt. IV of ch. 378, F.S., the Resource
42	Extraction Reclamation Act, and from ch. 373, F.S., the
43	Florida Water Resources Act of 1972, under specified
44	circumstances; providing an additional circumstance for
45	which a variance may be granted; amending s. 403.064,
46	F.S.; providing that conclusions of described reuse
47	feasibility studies shall govern specified permitting
48	decisions and the feasibility of providing reclaimed water
49	for reuse purposes; amending s. 403.1835, F.S.;
50	authorizing the Department of Environmental Protection to
51	make specified deposits for the purpose of enabling below-
52	market interest rate loans for treatment of polluted
53	water; amending s. 259.03, F.S.; revising the definition
54	of "water resource development project"; providing for a
55	study of the feasibility of discharging reclaimed
56	wastewater into canals in a specified area as an
57	environmentally acceptable means of accomplishing
58	described objectives; requiring reports; providing an
59	effective date.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1. (1) The Legislature recognizes that the proper
64	conservation of water is an important means of achieving the
65	economic and efficient utilization of water necessary to
66	constitute a reasonable and beneficial use. The Legislature
67	encourages the development and use of water conservation
68	measures that are effective, flexible, and affordable. In the
69	context of the use of water for public supply provided by a
70	water utility, the Legislature intends for a variety of
71	conservation measures to be available and used to encourage
72	efficient water use. The Legislature finds that the social,
73	economic, and cultural conditions of this state relating to the
74	use of public water supply vary by geographic region, and thus
75	water utilities must have the flexibility to tailor water
76	conservation measures to best suit their individual
77	circumstances.
78	(2) In furtherance of the findings in subsection (1), the
79	Department of Environmental Protection shall develop a water
80	conservation guidance manual containing a menu of water
81	conservation measures from which public water supply utilities
82	may select in the development of a water conservation program
83	tailored for their individual service areas that is effective
84	and does not impose undue costs or burdens on customers. The
85	water conservation guidance manual may contain measures such as
86	billing notices informing customers of the need to conserve
87	water; ordinances requiring low-flow plumbing; rebate programs
88	for the installation of water-saving plumbing or appliances;
89	general water conservation educational programs; and water
90	conservation or drought rate structures that encourage customers
91	to conserve water through appropriate price signals. If the
92	water conservation guidance manual includes the option of
93	adopting water conservation or drought rate structures, the
94	department shall specifically set forth in the manual that it is
95	the responsibility of the appropriate utility to determine the
96	rates it will charge its customers and that the role of the
97	department or water management district is confined to the
98	review of those rate structures to determine whether they
99	encourage water conservation. The department shall also set
100	forth in the water conservation guidance manual that a utility
101	need not adopt a water conservation or drought rate structure if
102	the utility employs other measures that are equally effective or
103	more effective.
104	(3) The Department of Environmental Protection shall
105	develop the water conservation guidance manual no later than
106	November 15, 2003. The department shall develop the manual in
107	consultation with representatives from the water management
108	districts, public water supply utilities, domestic wastewater
109	utilities, environmental and community organizations, business
110	organizations, and municipalities and counties. The water
111	management districts shall, by March 15, 2004, adopt the water
112	conservation guidance manual by reference in their rules
113	governing the review of applications for permits under part II
114	of chapter 373, Florida Statutes. Once the water conservation
115	guidance manual is adopted by rule, a public water supply
116	utility shall develop a water conservation program from the
117	options contained in the manual. The program shall be used to
118	satisfy water conservation requirements imposed as a condition
119	to obtaining a permit under part II of chapter 373, Florida
120	Statutes. The department, in consultation with the
121	aforementioned entities, may periodically amend or revise the
122	water conservation guidance manual as appropriate to reflect
123	changed circumstances or new technologies or ideas. The
124	findings and provisions in this section shall not be construed
125	to apply to uses of water other than potable water supply.
126	Section 2. Subsection (1) of section 373.023, Florida
127	Statutes, is amended to read:
128	373.023 Scope and application.--
129	(1) All waters in the state, except water produced by
130	domestic wastewater treatment facilities subject to regulation
131	under s. 403.064,are subject to regulation under the provisions
132	of this chapter unless specifically exempted by general or
133	special law.
134	Section 3. Subsections (2) and (6) of section 373.0361,
135	Florida Statutes, are amended to read:
136	373.0361 Regional water supply planning.--
137	(2) Each regional water supply plan shall be based on at
138	least a 20-year planning period and shall include, but not be
139	limited to:
140	(a) A water supply development component that includes:
141	1. A quantification of the water supply needs for all
142	existing and reasonably projected future uses within the
143	planning horizon. The level-of-certainty planning goal
144	associated with identifying the water supply needs of existing
145	and future reasonable-beneficial uses shall be based upon
146	meeting those needs for a 1-in-10-year drought event.
147	2. A list of water source options for water supply
148	development, including traditional and alternative sources, from
149	which local government, government-owned and privately owned
150	utilities, self-suppliers, and others may choose, which will
151	exceed the needs identified in subparagraph 1.
152	3. For each option listed in subparagraph 2., the
153	estimated amount of water available for use and the estimated
154	costs of and potential sources of funding for water supply
155	development.
156	4. A list of water supply development projects that meet
157	the criteria in s. 373.0831(4).
158	(b) A water resource development component that includes:
159	1. A listing of those water resource development projects
160	that support water supply development.
161	2. For each water resource development project listed:
162	a. An estimate of the amount of water to become available
163	through the project.
164	b. The timetable for implementing or constructing the
165	project and the estimated costs for implementing, operating, and
166	maintaining the project.
167	c. Sources of funding and funding needs.
168	d. Who will implement the project and how it will be
169	implemented.
170	(c) The recovery and prevention strategy described in s.
171	373.0421(2).
172	(d) A funding strategy for water resource development
173	projects, which shall be reasonable and sufficient to pay the
174	cost of constructing or implementing all of the listed projects.
175	(e) Consideration of how the options addressed in
176	paragraphs (a) and (b) serve the public interest or save costs
177	overall by preventing the loss of natural resources or avoiding
178	greater future expenditures for water resource development or
179	water supply development. However, unless adopted by rule, these
180	considerations do not constitute final agency action.
181	(f) The technical data and information applicable to the
182	planning region which are contained in the district water
183	management plan and are necessary to support the regional water
184	supply plan.
185	(g) The minimum flows and levels established for water
186	resources within the planning region.
187	(h) Reservations of water adopted by rule pursuant to s.
188	373.223(4).
189	(i) An analysis, developed in cooperation with the
190	department, of areas or instances in which the variance
191	provisions of s. 378.212(1)(g) may be used to create water
192	supply development or water resource development projects.
193	(6) Nothing contained in the water supply development
194	component of the district water management plan shall be
195	construed to require local governments, government-owned or
196	privately owned water utilities, self-suppliers, or other water
197	suppliers to select a water supply development option identified
198	in the component merely because it is identified in the plan,
199	nor may the plan be used as criteria for the review of permits
200	under part II unless the plan, or applicable portion thereof,
201	has been adopted by rule. However, this subsection shall not be
202	construed to limit the authority of the department or governing
203	board under part II.
204	Section 4. Subsections (3) and (4) of section 373.0831,
205	Florida Statutes, are amended to read:
206	373.0831 Water resource development; water supply
207	development.--
208	(3) The water management districts shall fund and
209	implement water resource development as defined in s. 373.019.
210	The water management districts are encouraged to implement water
211	resource development as expeditiously as possible in areas
212	subject to regional water supply plans.Each governing board
213	shall include in its annual budget the amount needed for the
214	fiscal year to implement water resource development projects, as
215	prioritized in its regional water supply plans. When submitting
216	its annual budget to the Governor’s office for review under s.
217	373.536, the governing board shall explain how each water
218	resource development project will produce additional water
219	available for consumptive uses and estimate the quantity of
220	water to be produced.
221	(4)(a) Water supply development projects which are
222	consistent with the relevant regional water supply plans and
223	which meet at least one or moreof the following criteria shall
224	receive priority consideration for state or water management
225	district funding assistance:
226	1. The project supports establishment of a dependable,
227	sustainable supply of water which is not otherwise financially
228	feasible;
229	2. The project provides substantial environmental benefits
230	by preventing or limiting adverse water resource impacts, but
231	requires funding assistance to be economically competitive with
232	other options; or
233	3. The project significantly implements reuse, storage,
234	recharge, or conservation of water in a manner that contributes
235	to the efficient use and sustainability of regional water supply
236	sources.
237	(b) Water supply development projects which meet the
238	criteria in paragraph (a) and also bring about replacement of
239	existing sources in order to help implement a minimum flow or
240	level shall be given first consideration for state or water
241	management district funding assistance.
242	(c) If a proposed alternative water supply project is
243	identified in the relevant approved regional water supply plan,
244	the project shall receive:
245	1. A 20-year consumptive use permit, if it otherwise meets
246	the permit requirements under ss. 373.223 and 373.236 and rules
247	adopted thereunder.
248	2. Priority funding pursuant to s. 373.1961(2) with the
249	implementation of the water resource development component of
250	the proposed project.
251	Section 5. Paragraph (a) of subsection (2) of section
252	373.1961, Florida Statutes, is amended to read:
253	373.1961 Water production.--
254	(2) The Legislature finds that, due to a combination of
255	factors, vastly increased demands have been placed on natural
256	supplies of fresh water, and that, absent increased development
257	of alternative water supplies, such demands may increase in the
258	future. The Legislature also finds that potential exists in the
259	state for the production of significant quantities of
260	alternative water supplies, including reclaimed water, and that
261	water production includes the development of alternative water
262	supplies, including reclaimed water, for appropriate uses. It is
263	the intent of the Legislature that utilities develop reclaimed
264	water systems, where reclaimed water is the most appropriate
265	alternative water supply option, to deliver reclaimed water to
266	as many users as possible through the most cost-effective means,
267	and to construct reclaimed water system infrastructure to their
268	owned or operated properties and facilities where they have
269	reclamation capability. It is also the intent of the Legislature
270	that the water management districts which levy ad valorem taxes
271	for water management purposes should share a percentage of those
272	tax revenues with water providers and users, including local
273	governments, water, wastewater, and reuse utilities, municipal,
274	industrial, and agricultural water users, and other public and
275	private water users, to be used to supplement other funding
276	sources in the development of alternative water supplies. The
277	Legislature finds that public moneys or services provided to
278	private entities for such uses constitute public purposes which
279	are in the public interest. In order to further the development
280	and use of alternative water supply systems, including reclaimed
281	water systems, the Legislature provides the following:
282	(a) The governing boards of the water management districts
283	where water resource caution areas have been designated shall
284	include in their annual budgets an amount for the development of
285	alternative water supply systems, including reclaimed water
286	systems, pursuant to the requirements of this subsection.
287	Beginning in 1996, such amounts shall be made available to water
288	providers and users no later than December 31 of each year,
289	through grants, matching grants, revolving loans, or the use of
290	district lands or facilities pursuant to the requirements of
291	this subsection and guidelines established by the districts.
292	Without diminishing amounts available through other means
293	described in this paragraph, the governing boards are encouraged
294	to consider establishing revolving loan funds to expand the
295	total funds available to accomplish the objectives of this
296	section. A revolving loan fund created pursuant to this
297	paragraph shall be a nonlapsing fund from which the water
298	management district may make loans with interest rates below
299	prevailing market rates to public or private entities for the
300	purposes described in this section. The governing boards may
301	adopt resolutions to establish revolving loan funds which shall
302	specify the details of the administration of the fund, the
303	procedures for applying for loans from the fund, the criteria
304	for awarding loans from the fund, the initial capitalization of
305	the fund, and the goals for future capitalization of the fund in
306	subsequent budget years. Revolving loan funds created pursuant
307	to this paragraph shall be used to expand the total sums and
308	sources of cooperative funding available for the development of
309	alternative water supplies. The Legislature does not intend for
310	the creation of revolving loan trust funds to supplant or
311	otherwise reduce existing sources or amounts of funds currently
312	available through other means.
313	Section 6. Subsection (3) of section 373.223, Florida
314	Statutes, is amended to read:
315	373.223 Conditions for a permit.--
316	(3) Except for the transport and use of water supplied by
317	the Central and Southern Florida Flood Control Project, and
318	anywhere in the state when the transport and use of water is
319	supplied exclusively for bottled water as defined in s.
320	500.03(1)(d), any water use permit applications pending as of
321	April 1, 1998, with the Northwest Florida Water Management
322	District,andself-suppliers of water for which the proposed
323	water source and area of use or application are located on
324	contiguous private properties, utilities implementing one or
325	more options of an approved regional water supply plan prepared
326	pursuant to ss. 373.036 and 373.0361, utilities implementing
327	interconnections, and utilities owning or operating facilities
328	located in more than one county,when evaluating whether a
329	potential transport and use of ground or surface water across
330	county boundaries is consistent with the public interest,
331	pursuant to paragraph (1)(c), the governing board or department
332	shall consider:
333	(a) The proximity of the proposed water source to the area
334	of use or application.
335	(b) All impoundments, streams, groundwater sources, or
336	watercourses that are geographically closer to the area of use
337	or application than the proposed source, and that are
338	technically and economically feasible for the proposed transport
339	and use.
340	(c) All economically and technically feasible alternatives
341	to the proposed source, including, but not limited to,
342	desalination, conservation, reuse of nonpotable reclaimed water
343	and stormwater, and aquifer storage and recovery.
344	(d) The potential environmental impacts that may result
345	from the transport and use of water from the proposed source,
346	and the potential environmental impacts that may result from use
347	of the other water sources identified in paragraphs (b) and (c).
348	(e) Whether existing and reasonably anticipated sources of
349	water and conservation efforts are adequate to supply water for
350	existing legal uses and reasonably anticipated future needs of
351	the water supply planning region in which the proposed water
352	source is located.
353	(f) Consultations with local governments affected by the
354	proposed transport and use.
355	(g) The value of the existing capital investment in water-
356	related infrastructure made by the applicant.
357
358	Where districtwide water supply assessments and regional water
359	supply plans have been prepared pursuant to ss. 373.036 and
360	373.0361, the governing board or the department shall use the
361	applicable plans and assessments as the basis for its
362	consideration of the applicable factors in this subsection.
363	Section 7. Subsection (4) is added to section 373.236,
364	Florida Statutes, to read:
365	373.236 Duration of permits; compliance reports.--
366	(4) The department or the water management district shall
367	issue permits of longer duration than specified in subsection
368	(1), subsection (2), or subsection (3) to applicants who
369	implement and provide reasonable assurances of effective and
370	efficient conservation measures that exceed the average for the
371	industry or type of water use, and where sufficient data exists
372	to provide reasonable assurance that the conditions for the
373	issuance of an extended-duration permit will be met for the
374	duration of the permit. Permits issued for a duration of 10
375	years or longer pursuant to this subsection shall be subject to
376	the provisions of subsection (3).
377	Section 8. Subsection (6) of section 373.246, Florida
378	Statutes, is amended to read:
379	373.246 Declaration of water shortage or emergency.--
380	(6) The governing board or the department shall notify
381	each permittee in the district by regular mail of any change in
382	the condition of his or her permit or any suspension of his or
383	her permit or of any other restriction on the permittee's use of
384	water for the duration of the water shortage. The permittee
385	shall comply with such orders, subject to the right to challenge
386	such orders as provided herein. However, an applicant for a
387	permit under this part shall not be required to demonstrate the
388	ability to comply with future potential orders issued under this
389	section as a condition to obtaining the permit.
390	Section 9. Subsection (4) of section 373.250, Florida
391	Statutes, is amended to read:
392	373.250 Reuse of reclaimed water.--
393	(4) Nothing in this section shall impair a water
394	management district's authority to plan for and regulate
395	consumptive uses of water under this chapter. However, neither
396	this section nor this part shall be construed to grant the water
397	management districts the authority to require a utility to
398	provide reclaimed water, the provision of which shall be solely
399	governed by s. 403.064.
400	Section 10. Subsection (1) of section 378.212, Florida
401	Statutes, is amended to read:
402	378.212 Variances.--
403	(1) Upon application, the secretary may grant a variance
404	from the provisions of this part, part IV, and chapter 373,or
405	the rules adopted pursuant thereto. Variances and renewals
406	thereof may be granted for any one of the following reasons:
407	(a) There is no practicable means known or available to
408	comply with the provisions of this part or the rules adopted
409	pursuant thereto.
410	(b) Compliance with a particular requirement or
411	requirements from which a variance is sought will necessitate
412	the taking of measures which must be spread over a considerable
413	period of time. A variance granted for this reason shall
414	prescribe a timetable for the taking of the measures required.
415	(c) To relieve or prevent hardship, including economic
416	hardship, of a kind other than those provided for in paragraphs
417	(a) and (b).
418	(d) To accommodate specific phosphate mining, processing
419	or chemical plant uses that otherwise would be inconsistent with
420	the requirements of this part.
421	(e) To provide for an experimental technique that would
422	advance the knowledge of reclamation and restoration methods.
423	(f) To accommodate projects, including those proposing
424	offsite mitigation, that provide a significant regional benefit
425	for wildlife and the environment.
426	(g) To accommodate reclamation that provides water supply
427	development or water resource development consistent with the
428	applicable regional water supply plan approved pursuant to s.
429	373.0361, provided that regional water resources are not
430	adversely affected.
431	Section 11. Subsections (1), (4), and (6) of section
432	403.064, Florida Statutes, are amended to read:
433	403.064 Reuse of reclaimed water.--
434	(1) The encouragement and promotion of water conservation,
435	and reuse of reclaimed water, as defined by the department, are
436	state objectives and are considered to be in the public
437	interest. The Legislature finds that the reuse of reclaimed
438	water is a critical component of meeting the state's existing
439	and future water supply needs while sustaining natural systems.
440	The Legislature further finds that for those wastewater
441	treatment plants permitted and operated under an approved reuse
442	program by the department, the reclaimed water shall be
443	considered environmentally acceptable and not a threat to public
444	health and safety. The Legislature encourages the development of
445	incentive- based programs for reuse implementation.
446	(4) The study required under subsection (2) shall be
447	performed by the applicant, and, if the study shows that the
448	reuse is feasible, the applicant must give significant
449	consideration to its implementation if the study complies with
450	the requirements of subsections (2) and (3). The conclusions of
451	the study shall govern permitting decisions under this part and
452	part II of chapter 373.
453	(6) A reuse feasibility study prepared under subsection
454	(2) satisfies a water management district requirement to conduct
455	a reuse feasibility study imposed on a local government or
456	utility that has responsibility for wastewater management, and
457	the conclusions of the study shall determine the feasibility of
458	providing reclaimed water for reuse under part II of chapter
459	373.
460	Section 12. Paragraph (b) of subsection (3) of section
461	403.1835, Florida Statutes, is amended to read:
462	403.1835 Water pollution control financial assistance.--
463	(3) The department may provide financial assistance
464	through any program authorized under s. 603 of the Federal Water
465	Pollution Control Act (Clean Water Act), Pub. L. No. 92-500, as
466	amended, including, but not limited to, making grants and loans,
467	providing loan guarantees, purchasing loan insurance or other
468	credit enhancements, and buying or refinancing local debt. This
469	financial assistance must be administered in accordance with
470	this section and applicable federal authorities. The department
471	shall administer all programs operated from funds secured
472	through the activities of the Florida Water Pollution Control
473	Financing Corporation under s. 403.1837, to fulfill the purposes
474	of this section.
475	(b) The department may make or request the corporation to
476	make loans, grants, and deposits to other entities eligible to
477	participate in the financial assistance programs authorized
478	under the Federal Water Pollution Control Act, or as a result of
479	other federal action, which entities may pledge any revenue
480	available to them to repay any funds borrowed. Notwithstanding
481	s. 18.10, the department may make deposits to financial
482	institutions that earn less than the prevailing rate for United
483	States Treasury securities with corresponding maturities for the
484	purpose of enabling such financial institutions to make below-
485	market interest rate loans to entities qualified to receive
486	loans under this section and the rules of the department.
487	Section 13. Subsection (6) of section 259.03, Florida
488	Statutes, is amended to read:
489	259.03 Definitions.--The following terms and phrases when
490	used in this chapter shall have the meanings ascribed to them in
491	this section, except where the context clearly indicates a
492	different meaning:
493	(6) "Water resource development project" means a project
494	eligible for funding pursuant to s. 259.105 that increases the
495	amount of water available to meet the needs of natural systems
496	and the citizens of the state by enhancing or restoring aquifer
497	recharge, facilitating the capture and storage of excess flows
498	in surface waters, or promoting reuse. The implementation of
499	eligible projects under s. 259.105 includes land acquisition,
500	land and water body restoration, aquifer storage and recovery
501	facilities, surface water reservoirs, and other capital
502	improvements. The term does not include construction of potable
503	watertreatment, transmission, or distribution facilities.
504	Section 14. The Legislature finds that, within the area
505	identified in the Lower East Coast Regional Water Supply Plan
506	approved by the South Florida Water Management District pursuant
507	to s. 373.0361, Florida Statutes, the groundwater levels can
508	benefit from augmentation. The Legislature finds that the
509	discharge of reclaimed water into canals for transport and
510	subsequent reuse may provide an environmentally acceptable means
511	to augment water supplies and enhance natural systems; however,
512	the Legislature also recognizes that there are water quality and
513	water quantity issues that must be better understood and
514	resolved. In addition, there are cost savings possible by
515	collocating enclosed conduits for conveyance of water for reuse
516	in this area within canal rights-of-way that should be
517	investigated. Toward that end, the Department of Environmental
518	Protection, in consultation with the South Florida Water
519	Management District, Southeast Florida utilities, affected local
520	governments, including local governments with principal
521	responsibility for the operation and maintenance of a water
522	control system capable of conveying reclaimed wastewater for
523	reuse, representatives of the environmental and engineering
524	communities, public health professionals, and individuals having
525	expertise in water quality, shall conduct a study to investigate
526	the feasibility of discharging reclaimed wastewater into canals
527	as an environmentally acceptable means of augmenting groundwater
528	supplies, enhancing natural systems, and conveying reuse water
529	within enclosed conduits within the canal right-of-way. The
530	study shall include an assessment of the water quality, water
531	supply, public health, technical, and legal implications related
532	to the canal discharge and collocation concepts. The department
533	shall issue a preliminary written report containing draft
534	findings and recommendations for public comment by November 1,
535	2003. The department shall provide a written report on the
536	results of its study to the Governor and the substantive
537	committees of the House of Representatives and the Senate by
538	January 31, 2004. Nothing in this section shall be used to alter
539	the purpose of the Comprehensive Everglades Restoration Plan or
540	the implementation of the Water Resources Development Act of
541	2000.
542	Section 15. This act shall take effect upon becoming a
543	law.