Senate Bill sb2758

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    Florida Senate - 2003                                  SB 2758

    By Senator Dockery





    15-1541-03

  1                      A bill to be entitled

  2         An act relating to water resources; amending s.

  3         163.3177, F.S.; requiring information

  4         pertaining to potable water and to present and

  5         potential water resources to be included in

  6         comprehensive plans; amending s. 367.081, F.S.;

  7         providing for the Public Service Commission to

  8         allow cost recovery for alternative water

  9         supply facilities; amending s. 367.0814, F.S.;

10         revising eligibility standards for water and

11         wastewater utilities to receive commission

12         staff assistance in changing rates and charges;

13         creating s. 367.0818, F.S.; providing for

14         conservation or drought water rates; amending

15         s. 373.0361, F.S.; including conservation

16         measures among the water source options to be

17         included in a regional water supply plan;

18         amending s. 373.0831, F.S.; requiring water

19         management districts to include certain

20         information in their annual budgets; amending

21         s. 373.233, F.S.; providing criteria for

22         evaluating competing applications for water

23         use; amending s. 373.236, F.S.; providing for

24         issuance of longer-duration permits to

25         applicants who will implement conservation

26         measures; amending s. 373.1961, F.S.; providing

27         additional guidelines for establishing funding

28         priorities; amending s. 378.212, F.S.;

29         expanding authority to issue certain variances

30         and authorizing variances from additional

31         statutory requirements; amending s. 403.064,

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 1         F.S.; encouraging the metering of use of

 2         reclaimed water and charging for actual use of

 3         such water; creating s. 403.0645, F.S.;

 4         requiring the maximum practicable use of

 5         reclaimed water by state agencies and water

 6         management districts; creating s. 373.186,

 7         F.S.; encouraging the use of certain landscape

 8         design criteria; providing an effective date.

 9  

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

11  

12         Section 1.  Subsection (3) and paragraph (a) of

13  subsection (6) of section 163.3177, Florida Statutes, are

14  amended to read:

15         163.3177  Required and optional elements of

16  comprehensive plan; studies and surveys.--

17         (3)(a)  The comprehensive plan shall contain a capital

18  improvements element designed to consider the need for and the

19  location of public facilities in order to encourage the

20  efficient utilization of such facilities and set forth:

21         1.  A component that which outlines principles for

22  construction, extension, or increase in capacity of public

23  facilities, as well as a component which outlines principles

24  for correcting existing public facility deficiencies, which

25  are necessary to implement the comprehensive plan. The

26  components shall cover at least a 5-year period.

27         2.  A component that outlines plans for construction,

28  extension, or increase in capacity of potable water

29  facilities. Such component shall be compatible with the

30  applicable regional water supply plan developed pursuant to s.

31  373.061. Such component shall include a water conservation

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 1  section that outlines potential water savings to be gained

 2  through water conservation practices.

 3         3.2.  Estimated public facility costs, including a

 4  delineation of when facilities will be needed, the general

 5  location of the facilities, and projected revenue sources to

 6  fund the facilities.

 7         4.3.  Standards to ensure the availability of public

 8  facilities and the adequacy of those facilities including

 9  acceptable levels of service.

10         5.4.  Standards for the management of debt.

11         (b)  The capital improvements element shall be reviewed

12  on an annual basis and modified as necessary in accordance

13  with s. 163.3187 or s. 163.3189, except that corrections,

14  updates, and modifications concerning costs; revenue sources;

15  acceptance of facilities pursuant to dedications which are

16  consistent with the plan; or the date of construction of any

17  facility enumerated in the capital improvements element may be

18  accomplished by ordinance and shall not be deemed to be

19  amendments to the local comprehensive plan.  All public

20  facilities shall be consistent with the capital improvements

21  element.

22         (6)  In addition to the requirements of subsections

23  (1)-(5), the comprehensive plan shall include the following

24  elements:

25         (a)  A future land use plan element designating

26  proposed future general distribution, location, and extent of

27  the uses of land for residential uses, commercial uses,

28  industry, agriculture, recreation, conservation, education,

29  public buildings and grounds, other public facilities, and

30  other categories of the public and private uses of land. Each

31  future land use category must be defined in terms of uses

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 1  included, and must include standards to be followed in the

 2  control and distribution of population densities and building

 3  and structure intensities. The proposed distribution,

 4  location, and extent of the various categories of land use

 5  shall be shown on a land use map or map series which shall be

 6  supplemented by goals, policies, and measurable objectives.

 7  The future land use plan shall be based upon surveys, studies,

 8  and data regarding the area, including the amount of land

 9  required to accommodate anticipated growth; the projected

10  population of the area; the character of undeveloped land; the

11  availability of groundwater and surface water resources for

12  present and future water supplies and the potential for

13  development of alternative water supplies; the availability of

14  public services; the need for redevelopment, including the

15  renewal of blighted areas and the elimination of nonconforming

16  uses which are inconsistent with the character of the

17  community; and, in rural communities, the need for job

18  creation, capital investment, and economic development that

19  will strengthen and diversify the community's economy. The

20  future land use plan may designate areas for future planned

21  development use involving combinations of types of uses for

22  which special regulations may be necessary to ensure

23  development in accord with the principles and standards of the

24  comprehensive plan and this act. In addition, for rural

25  communities, the amount of land designated for future planned

26  industrial use shall be based upon surveys and studies that

27  reflect the need for job creation, capital investment, and the

28  necessity to strengthen and diversify the local economies, and

29  shall not be limited solely by the projected population of the

30  rural community. The future land use plan of a county may also

31  designate areas for possible future municipal incorporation.

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 1  The land use maps or map series shall generally identify and

 2  depict historic district boundaries and shall designate

 3  historically significant properties meriting protection.  The

 4  future land use element must clearly identify the land use

 5  categories in which public schools are an allowable use.  When

 6  delineating the land use categories in which public schools

 7  are an allowable use, a local government shall include in the

 8  categories sufficient land proximate to residential

 9  development to meet the projected needs for schools in

10  coordination with public school boards and may establish

11  differing criteria for schools of different type or size.

12  Each local government shall include lands contiguous to

13  existing school sites, to the maximum extent possible, within

14  the land use categories in which public schools are an

15  allowable use. All comprehensive plans must comply with the

16  school siting requirements of this paragraph no later than

17  October 1, 1999. The failure by a local government to comply

18  with these school siting requirements by October 1, 1999, will

19  result in the prohibition of the local government's ability to

20  amend the local comprehensive plan, except for plan amendments

21  described in s. 163.3187(1)(b), until the school siting

22  requirements are met. Amendments proposed by a local

23  government for purposes of identifying the land use categories

24  in which public schools are an allowable use or for adopting

25  or amending the school-siting maps pursuant to s. 163.31776(3)

26  are exempt from the limitation on the frequency of plan

27  amendments contained in s. 163.3187. The future land use

28  element shall include criteria that encourage the location of

29  schools proximate to urban residential areas to the extent

30  possible and shall require that the local government seek to

31  collocate public facilities, such as parks, libraries, and

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 1  community centers, with schools to the extent possible and to

 2  encourage the use of elementary schools as focal points for

 3  neighborhoods. For schools serving predominantly rural

 4  counties, defined as a county with a population of 100,000 or

 5  fewer, an agricultural land use category shall be eligible for

 6  the location of public school facilities if the local

 7  comprehensive plan contains school siting criteria and the

 8  location is consistent with such criteria.

 9         Section 2.  Subsection (2) of section 367.081, Florida

10  Statutes, is amended to read:

11         367.081  Rates; procedure for fixing and changing.--

12         (2)(a)1.  The commission shall, either upon request or

13  upon its own motion, fix rates which are just, reasonable,

14  compensatory, and not unfairly discriminatory. In every such

15  proceeding, the commission shall consider the value and

16  quality of the service and the cost of providing the service,

17  which shall include, but not be limited to, debt interest; the

18  requirements of the utility for working capital; maintenance,

19  depreciation, tax, and operating expenses incurred in the

20  operation of all property used and useful in the public

21  service; and a fair return on the investment of the utility in

22  property used and useful in the public service. Pursuant to s.

23  373.1961(2)(k), the commission shall allow the full, prudently

24  incurred costs of alternative water-supply facilities.

25  However, the commission shall not allow the inclusion of

26  contributions-in-aid-of-construction in the rate base of any

27  utility during a rate proceeding, nor shall the commission

28  impute prospective future contributions-in-aid-of-construction

29  against the utility's investment in property used and useful

30  in the public service; and accumulated depreciation on such

31  contributions-in-aid-of-construction shall not be used to

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 1  reduce the rate base, nor shall depreciation on such

 2  contributed assets be considered a cost of providing utility

 3  service.

 4         2.  For purposes of such proceedings, the commission

 5  shall consider utility property, including land acquired or

 6  facilities constructed or to be constructed within a

 7  reasonable time in the future, not to exceed 24 months after

 8  the end of the historic base year used to set final rates

 9  unless a longer period is approved by the commission, to be

10  used and useful in the public service, if:

11         a.  Such property is needed to serve current customers;

12         b.  Such property is needed to serve customers 5 years

13  after the end of the test year used in the commission's final

14  order on a rate request as provided in subsection (6) at a

15  growth rate for equivalent residential connections not to

16  exceed 5 percent per year; or

17         c.  Such property is needed to serve customers more

18  than 5 full years after the end of the test year used in the

19  commission's final order on a rate request as provided in

20  subsection (6) only to the extent that the utility presents

21  clear and convincing evidence to justify such consideration.

22  

23  Notwithstanding the provisions of this paragraph, the

24  commission shall approve rates for service which allow a

25  utility to recover from customers the full amount of

26  environmental compliance costs. Such rates may not include

27  charges for allowances for funds prudently invested or similar

28  charges. For purposes of this requirement, the term

29  "environmental compliance costs" includes all reasonable

30  expenses and fair return on any prudent investment incurred by

31  a utility in complying with the requirements or conditions

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 1  contained in any permitting, enforcement, or similar decisions

 2  of the United States Environmental Protection Agency, the

 3  Department of Environmental Protection, a water management

 4  district, or any other governmental entity with similar

 5  regulatory jurisdiction.

 6         (b)  In establishing initial rates for a utility, the

 7  commission may project the financial and operational data as

 8  set out in paragraph (a) to a point in time when the utility

 9  is expected to be operating at a reasonable level of capacity.

10         Section 3.  Subsection (1) of section 367.0814, Florida

11  Statutes, is amended to read:

12         367.0814  Staff assistance in changing rates and

13  charges; interim rates.--

14         (1)  The commission may establish rules by which a

15  water or wastewater utility whose gross annual revenues are

16  $200,000 $150,000 or less may request and obtain staff

17  assistance for the purpose of changing its rates and charges.

18  A utility may request staff assistance by filing an

19  application with the commission.

20         Section 4.  Section 367.0818, Florida Statutes, is

21  created to read:

22         367.0818  Conservation or drought rates.--The

23  commission may, during any proceeding for a change in rates,

24  upon its own motion, upon a petition from any party, or by a

25  tariff filing, establish conservation or drought rates

26  designed to promote more efficient use of water and provide an

27  economic incentive for consumers to limit water use. The

28  commission has the authority to stabilize the revenues that

29  are generated by conservation or drought rates.

30         Section 5.  Paragraph (a) of subsection (2) of section

31  373.0361, Florida Statutes, is amended to read:

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 1         373.0361  Regional water supply planning.--

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

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

 4  be limited to:

 5         (a)  A water supply development component that

 6  includes:

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

 8  existing and reasonably projected future uses within the

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

10  associated with identifying the water supply needs of existing

11  and future reasonable-beneficial uses shall be based upon

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

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

14  development, including traditional and alternative sources and

15  conservation measures, from which local government,

16  government-owned and privately owned utilities,

17  self-suppliers, and others may choose, which will exceed the

18  needs identified in subparagraph 1.

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

20  estimated amount of water available for use and the estimated

21  costs of and potential sources of funding for water supply

22  development.

23         4.  A list of water supply development projects that

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

25         Section 6.  Subsection (3) of section 373.0831, Florida

26  Statutes, is amended to read:

27         373.0831  Water resource development; water supply

28  development.--

29         (3)  The water management districts shall fund and

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

31  Each governing board shall include in its annual budget the

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 1  amount needed for the fiscal year to implement water resource

 2  development projects, as prioritized in its regional water

 3  supply plans. When submitting its annual budget to the

 4  Governor's office for review under s. 373.536, the governing

 5  board shall explain how each water resource development

 6  project will produce additional water available for

 7  consumptive uses and estimate the quantity of water to be

 8  produced.

 9         Section 7.  Subsection (3) is added to section 373.233,

10  Florida Statutes, to read:

11         373.233  Competing applications.--

12         (3)  If two or more applications that otherwise comply

13  with the provisions of this part are pending for a quantity of

14  water, the governing board or the department shall give

15  preference to the application that has adopted water

16  conservation rates that promote appropriate water use

17  efficiency, including, but not limited to, a conservation or

18  drought rate structure.

19         Section 8.  Subsection (4) is added to section 373.236,

20  Florida Statutes, to read:

21         373.236  Duration of permits; compliance reports.--

22         (4)  The department or the water management district

23  shall adopt rules for the issuance of longer-duration permits

24  to applicants who implement and provide reasonable assurances

25  of effective and efficient conservation measures that exceed

26  the average for the industry or type of water use when there

27  are sufficient data to provide reasonable assurance that the

28  conditions for permit issuance will be met for the duration of

29  the permit. Permits issued pursuant to this subsection are

30  subject to the provisions of subsection (3).

31  

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 1         Section 9.  Paragraph (a) of subsection (2) of section

 2  373.1961, Florida Statutes, is amended to read:

 3         373.1961  Water production.--

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

 5  of factors, vastly increased demands have been placed on

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

 7  development of alternative water supplies, such demands may

 8  increase in the future.  The Legislature also finds that

 9  potential exists in the state for the production of

10  significant quantities of alternative water supplies,

11  including reclaimed water, and that water production includes

12  the development of alternative water supplies, including

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

14  the Legislature that utilities develop reclaimed water

15  systems, where reclaimed water is the most appropriate

16  alternative water supply option, to deliver reclaimed water to

17  as many users as possible through the most cost-effective

18  means, and to construct reclaimed water system infrastructure

19  to their owned or operated properties and facilities where

20  they have reclamation capability. It is also the intent of the

21  Legislature that the water management districts which levy ad

22  valorem taxes for water management purposes should share a

23  percentage of those tax revenues with water providers and

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

25  reuse utilities, municipal, industrial, and agricultural water

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

27  supplement other funding sources in the development of

28  alternative water supplies. The Legislature finds that public

29  moneys or services provided to private entities for such uses

30  constitute public purposes which are in the public interest.

31  In order to further the development and use of alternative

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 1  water supply systems, including reclaimed water systems, the

 2  Legislature provides the following:

 3         (a)  The governing boards of the water management

 4  districts where water resource caution areas have been

 5  designated shall include in their annual budgets an amount for

 6  the development of alternative water supply systems, including

 7  reclaimed water systems, pursuant to the requirements of this

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

 9  available to water providers and users no later than December

10  31 of each year, through grants, matching grants, revolving

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

12  the requirements of this subsection and guidelines established

13  by the districts. In making grants or loans, funding

14  priorities shall be given to projects located within water

15  resource caution areas, to projects consistent with regional

16  water supply plans, and to projects featuring efficient and

17  effective use of reclaimed water.

18         Section 10.  Subsection (1) of section 378.212, Florida

19  Statutes, is amended to read:

20         378.212  Variances.--

21         (1)  Upon application, the secretary may grant a

22  variance from the provisions of this part, part IV, and part

23  IV of chapter 373 or the rules adopted pursuant thereto.

24  Variances and renewals thereof may be granted for any one of

25  the following reasons:

26         (a)  There is no practicable means known or available

27  to comply with the provisions of this part or the rules

28  adopted pursuant thereto.

29         (b)  Compliance with a particular requirement or

30  requirements from which a variance is sought will necessitate

31  the taking of measures which must be spread over a

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 1  considerable period of time. A variance granted for this

 2  reason shall prescribe a timetable for the taking of the

 3  measures required.

 4         (c)  To relieve or prevent hardship, including economic

 5  hardship, of a kind other than those provided for in

 6  paragraphs (a) and (b).

 7         (d)  To accommodate specific phosphate mining,

 8  processing or chemical plant uses that otherwise would be

 9  inconsistent with the requirements of this part.

10         (e)  To provide for an experimental technique that

11  would advance the knowledge of reclamation and restoration

12  methods.

13         (f)  To accommodate projects, including those proposing

14  offsite mitigation, that provide a significant regional

15  benefit for wildlife and the environment.

16         (g)  To accommodate reclamation that provides water

17  supply development or water resource development consistent

18  with the applicable regional water supply plan approved

19  pursuant to s. 373.0361, if regional water resources are not

20  adversely affected.

21         Section 11.  Subsection (16) is added to section

22  403.064, Florida Statutes, to read:

23         403.064  Reuse of reclaimed water.--

24         (16)  Utilities implementing reuse projects are

25  encouraged to meter use of reclaimed water by all end users

26  and to charge for the use of reclaimed water based on the

27  actual volume used. Metering and the use of volume-based rates

28  are effective water management tools for the following reuse

29  activities; residential irrigation, agricultural irrigation,

30  industrial uses, golf course irrigation, landscape irrigation,

31  irrigation of other public access areas, commercial and

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 1  institutional uses such as toilet flushing, and transfers to

 2  other reclaimed water utilities. Beginning with the submittal

 3  due on January 1, 2004, each domestic wastewater utility that

 4  provides reclaimed water for the reuse activities listed above

 5  shall include a summary of its metering and rate structure as

 6  part of its annual reuse report to the department. By January

 7  1, 2006, each domestic wastewater utility that provides

 8  reclaimed water for the reuse activities listed above shall

 9  prepare a plan that presents its planned activities and an

10  implementation schedule for metering and utilization of

11  volume-based rate structures for reclaimed water use. These

12  plans shall be reviewed and must be approved by the

13  department.

14         Section 12.  Section 403.0645, Florida Statutes, is

15  created to read:

16         403.0645  Reclaimed water use at state facilities.--

17         (1)  The encouragement and promotion of reuse of

18  reclaimed water have been established as state objectives in

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

20  water and wastewater management in Florida, and Florida is

21  recognized as a national leader in water reuse.

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

23  management districts should take a leadership role in using

24  reclaimed water in lieu of other water sources. Use of

25  reclaimed water by state agencies and facilities will conserve

26  potable quality waters and will serve an important public

27  education function.

28         (3)  All state agencies and water management districts

29  shall use reclaimed water to the greatest extent practicable

30  for landscape irrigation, toilet flushing, aesthetic features

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

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 1  other useful purposes allowed by Department of Environmental

 2  Protection rules at state facilities, including, but not

 3  limited to, parks, rest areas, visitor welcome centers,

 4  buildings; college campuses, and other facilities.

 5         (4)  Each state agency and water management district

 6  shall submit to the Secretary of Environmental Protection by

 7  February 1 an annual summary of activities designed to use

 8  reclaimed water at its facilities, along with a summary of the

 9  amounts of reclaimed water actually used for beneficial

10  purposes.

11         Section 13.  Section 373.186, Florida Statutes, is

12  created to read:

13         373.186  Landscape irrigation design.--

14         (1)  The Legislature finds that multiple areas

15  throughout the state have been identified by water management

16  districts as water resource caution areas, indicating that

17  water demand in those areas will, in the near future, exceed

18  current, available water supply and that conservation is one

19  of the mechanisms by which future water demand will be met.

20         (2)  The Legislature finds that landscape irrigation

21  comprises a significant portion of water use and that the

22  current, typical landscape irrigation system designs offer

23  significant potential water conservation benefits.

24         (3)  It is the intent of the Legislature to improve

25  landscape irrigation water use efficiency by ensuring that

26  landscape irrigation systems meet or exceed minimum design

27  criteria.

28         (4)  All local governments are encouraged to develop

29  and adopt landscape irrigation design standards for new

30  construction that incorporate a landscape irrigation system.

31  Such standards should promote effective and efficient use of

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 1  irrigation water and include a consideration of local

 2  demographic, hydrologic, and other considerations as they

 3  apply to landscape irrigation water use.

 4         Section 14.  This act shall take effect upon becoming a

 5  law.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Revises a variety of statutory provisions relating to
      water use and supplies. Requires information relating to
10    projected water use and sources to be included among
      comprehensive plan elements. Revises various provisions
11    to encourage the use of alternative water supplies, to
      encourage the use of reclaimed water, and to maintain
12    closer monitoring of water use and supplies. (See bill
      for details.)
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