Senate Bill sb2772

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    Florida Senate - 2004                                  SB 2772

    By Senator Clary





    4-1412-04

  1                      A bill to be entitled

  2         An act relating to compensation for damage to

  3         the state's natural resources from pollutant

  4         discharges; amending s. 376.121, F.S.;

  5         authorizing the Department of Environmental

  6         Protection to use methods established pursuant

  7         to federal regulations to calculate

  8         compensation for damage to the state's natural

  9         resources; providing that if the federal

10         methods are not used, the methods currently

11         specified by law remain applicable; providing

12         an effective date.

13  

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

15  

16         Section 1.  Section 376.121, Florida Statutes, is

17  amended to read:

18         376.121  Liability for damage to natural

19  resources.--The Legislature finds that extensive damage to the

20  state's natural resources is the likely result of a pollutant

21  discharge and that it is essential that the state adequately

22  assess and recover the cost of such damage from responsible

23  parties.  It is the state's goal to recover the costs of

24  restoration from the responsible parties and to restore

25  damaged natural resources to their predischarge condition.  In

26  many instances, however, restoration is not technically

27  feasible.  In such instances, the state has the responsibility

28  to its citizens to recover the cost of all damage to natural

29  resources.  To ensure that the public does not bear a

30  substantial loss as a result of the destruction of natural

31  resources, the procedures set out in this section shall be

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 1  used to assess the cost of damage to such resources.  Natural

 2  resources include coastal waters, wetlands, estuaries, tidal

 3  flats, beaches, lands adjoining the seacoasts of the state,

 4  and all living things except human beings.  The Legislature

 5  recognizes the difficulty historically encountered in

 6  calculating the value of damaged natural resources.  The value

 7  of certain qualities of the state's natural resources is not

 8  readily quantifiable, yet the resources and their qualities

 9  have an intrinsic value to the residents of the state, and any

10  damage to natural resources and their qualities should not be

11  dismissed as nonrecoverable merely because of the difficulty

12  in quantifying their value.  In order to avoid unnecessary

13  speculation and expenditure of limited resources to determine

14  these values, the Legislature hereby establishes a statutory

15  schedule, and two alternative calculation methods, for

16  compensation for damage to the state's natural resources and

17  the quality of said resources.

18         (1)  The department shall assess and recover from

19  responsible parties the compensation for the injury or

20  destruction of natural resources, including, but not limited

21  to, the death or injury of living things and damage to or

22  destruction of habitat, resulting from pollutant discharges

23  prohibited by s. 376.041.  The amount of compensation and any

24  costs of assessing damage and recovering compensation received

25  by the department shall be deposited into the Florida Coastal

26  Protection Trust Fund pursuant to s. 376.12 and disbursed

27  according to subsection (11). Whoever violates, or causes to

28  be violated, s. 376.041 shall be liable to the state for

29  damage to natural resources.

30         (2)  The compensation schedule for damage to natural

31  resources is based upon the cost of restoration and the loss

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 1  of ecological, consumptive, intrinsic, recreational,

 2  scientific, economic, aesthetic, and educational values of

 3  such injured or destroyed resources.  The compensation

 4  schedule takes into account:

 5         (a)  The volume of the discharge.

 6         (b)  The characteristics of the pollutant discharged.

 7  The toxicity, dispersibility, solubility, and persistence

 8  characteristics of a pollutant as affects the severity of the

 9  effects on the receiving environment, living things, and

10  recreational and aesthetic resources.  Pollutants have varying

11  propensities to injure natural resources based upon their

12  potential exposure and effects.  Exposure to natural resources

13  is determined by the dispersibility and degradability of the

14  pollutant.  Effects to natural resources result from

15  mechanical injury and toxicity and include physical

16  contamination, smothering, feeding prevention, immobilization,

17  respiratory distress, direct mortality, lost recruitment of

18  larvae and juveniles killed, changes in the food web, and

19  chronic effects of sublethal levels of contaminates in tissues

20  or the environment. For purposes of the compensation schedule,

21  pollutants have been ranked for their propensity to cause

22  injury to natural resources based upon a combination of their

23  acute toxicity, mechanical injury, degradability, and

24  dispersibility characteristics on a 1-to-3 relative scale with

25  Category 1 containing the pollutants with the greatest

26  propensity to cause injury to natural resources. The following

27  pollutants are categorized:

28         1.  Category 1:  bunker and residual fuel.

29         2.  Category 2:  waste oils, crude oil, lubricating

30  oil, asphalt, and tars.

31  

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 1         3.  Category 3:  hydraulic fluids, numbers 1 and 2

 2  diesel fuels, heating oil, jet aviation fuels, motor gasoline,

 3  including aviation gasoline, kerosene, stationary turbine

 4  fuels, ammonia and its derivatives, and chlorine and its

 5  derivatives.

 6  

 7  The department shall adopt rules establishing the pollutant

 8  category of pesticides and other pollutants as defined in s.

 9  376.031 and not listed in this paragraph.

10         (c)  The type and sensitivity of natural resources

11  affected by a discharge, determined by the following factors:

12         1.  The location of a discharge.  Inshore discharges

13  are discharges that occur within waters under the jurisdiction

14  of the department and within an area extending seaward from

15  the coastline of the state to a point 1 statute mile seaward

16  of the coastline. Nearshore discharges are discharges that

17  occur more than 1 statute mile, but within 3 statute miles,

18  seaward of the coastline. Offshore discharges are discharges

19  that occur more than 3 statute miles seaward of the coastline.

20         2.  The location of the discharge with respect to

21  special management areas designated because of their unique

22  habitats; living resources; recreational use; aesthetic

23  importance; and other ecological, educational, consumptive,

24  intrinsic, scientific, and economic values of the natural

25  resources located therein.  Special management areas are state

26  parks; recreation areas; national parks, seashores, estuarine

27  research reserves, marine sanctuaries, wildlife refuges, and

28  national estuary program water bodies; state aquatic preserves

29  and reserves; classified shellfish harvesting areas; areas of

30  critical state concern; federally designated critical habitat

31  

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 1  for endangered or threatened species; and outstanding Florida

 2  waters.

 3         3.  The areal or linear extent of the natural resources

 4  impacted.

 5         (3)  Compensation for damage to natural resources for

 6  any discharge of less than 25 gallons of gasoline or diesel

 7  fuel shall be $50.

 8         (4)  Statutory compensation schedule:

 9         (a)  The amount of compensation assessed under this

10  schedule is calculated by: multiplying $1 per gallon or its

11  equivalent measurement of pollutant discharged, by the number

12  of gallons or its equivalent measurement, times the location

13  of the discharge factor, times the special management area

14  factor.

15         (b)  Added to the amount obtained in paragraph (a) is

16  the value of the observable natural resources damaged, which

17  is calculated by multiplying the areal or linear coverage of

18  impacted habitat by the corresponding habitat factor, times

19  the special management area factor.

20         (c)  The sum of paragraphs (a) and (b) is then

21  multiplied by the pollutant category factor.

22         (d)  The final damage assessment figure is the sum of

23  the amount calculated in paragraph (c) plus the compensation

24  for death of endangered or threatened species, plus the cost

25  of conducting the damage assessment as determined by the

26  department.

27         (5)(a)  The factors used in calculating the damage

28  assessment are:

29         1.  Location of discharge factor:

30  

31  

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 1         a.  Discharges that originate inshore have a factor of

 2  eight. Discharges that originate nearshore have a factor of

 3  five. Discharges that originate offshore have a factor of one.

 4         b.  Compensation for damage to natural resources

 5  resulting from discharges that originate outside of state

 6  waters but that traverse the state's boundaries and therefore

 7  have an impact upon the state's natural resources shall be

 8  calculated using a location factor of one.

 9         c.  Compensation for damage to natural resources

10  resulting from discharges of less than 10,000 gallons of

11  pollutants which originate within 100 yards of an established

12  terminal facility or point of routine pollutant transfer in a

13  designated port authority as defined in s. 315.02 shall be

14  assessed a location factor of one.

15         2.  Special management area factor: Discharges that

16  originate in special management areas described in

17  subparagraph (2)(c)2. have a factor of two.  Discharges that

18  originate outside a special management area described in

19  subparagraph (2)(c)2. have a location factor of one.  For

20  discharges that originate outside of a special management area

21  but impact the natural resources within a special management

22  area, the value of the natural resources damaged within the

23  area shall be multiplied by the special management area factor

24  of two.

25         3.  Pollutant category factor: Discharges of category 1

26  pollutants have a factor of eight.  Discharges of category 2

27  pollutants have a factor of four.  Discharges of category 3

28  pollutants have a factor of one.

29         4.  Habitat factor: The amount of compensation for

30  damage to the natural resources of the state is established as

31  follows:

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 1         a.  $10 per square foot of coral reef impacted.

 2         b.  $1 per square foot of mangrove or seagrass

 3  impacted.

 4         c.  $1 per linear foot of sandy beach impacted.

 5         d.  $0.50 per square foot of live bottom, oyster reefs,

 6  worm rock, perennial algae, saltmarsh, or freshwater tidal

 7  marsh impacted.

 8         e.  $0.05 per square foot of sand bottom or mud flats,

 9  or combination thereof, impacted.

10         (b)  The areal and linear coverage of habitat impacted

11  shall be determined by the department using a combination of

12  field measurements, aerial photogrammetry, and satellite

13  imagery.  An area is impacted when the pollutant comes in

14  contact with the habitat.

15         (6)  It is understood that a pollutant will, by its

16  very nature, result in damage to the flora and fauna of the

17  waters of the state and the adjoining land.  Therefore,

18  compensation for such resources, which is difficult to

19  calculate, is included in the compensation schedule.  Not

20  included, however, in this base figure is compensation for the

21  death of endangered or threatened species directly

22  attributable to the pollutant discharged. Compensation for the

23  death of any animal designated by rule as endangered by the

24  Fish and Wildlife Conservation Commission is $10,000.

25  Compensation for the death of any animal designated by rule as

26  threatened by the Fish and Wildlife Conservation Commission is

27  $5,000.  These amounts are not intended to reflect the actual

28  value of said endangered or threatened species, but are

29  included for the purposes of this section.

30         (7)  The owner or operator of the vessel or facility

31  responsible for a discharge may designate a representative or

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 1  agent to work with the department in assessing the amount of

 2  damage to natural resources resulting from the discharge.

 3         (8)  When assessing the amount of damages to natural

 4  resources, the department shall be assisted, if requested by

 5  the department, by representatives of other state agencies and

 6  local governments that would enhance the department's damage

 7  assessment. The Fish and Wildlife Conservation Commission

 8  shall assist the department in the assessment of damages to

 9  wildlife impacted by a pollutant discharge and shall assist

10  the department in recovering the costs of such damages.

11         (9)  Compensation for damage resulting from the

12  discharge of two or more pollutants shall be calculated for

13  the volume of each pollutant discharged.  If the separate

14  volume for each pollutant discharged cannot be determined, the

15  highest multiplier for the pollutants discharged shall be

16  applied to the entire volume of the spill.  Compensation for

17  commingled discharges that contact habitat shall be calculated

18  on a proportional basis of discharged volumes.  The highest

19  multiplier for such commingled pollutants may only be applied

20  if a reasonable proportionality of the commingled pollutants

21  cannot be determined at the point of any contact with natural

22  resources.

23         (10)  The department may use the statutory compensation

24  schedule in subsections (4)-(6) and (9) or the methods

25  established pursuant to the federal regulations implementing

26  the Oil Pollution Act of 1990, as amended, to assess the

27  damages of any discharge; however, for discharges of more than

28  30,000 gallons, if the department does not use the methods

29  established pursuant to federal regulation, it shall use the

30  statutory compensation schedule or a departmental damage

31  assessment, as provided in this subsection. The department

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 1  shall, in consultation with the Game and Fresh Water Fish and

 2  Wildlife Conservation Commission, adopt rules by July 1, 1994,

 3  to assess compensation for the damage to natural resources

 4  based upon the cost of restoring, rehabilitating, replacing,

 5  or acquiring the equivalent of the damaged natural resources;

 6  the diminution in the value of those resources pending

 7  restoration; and the reasonable cost of assessing those

 8  damages. The person responsible for a discharge shall be given

 9  an opportunity to consult with the department on the

10  assessment design and restoration program.

11         (a)  For discharges greater than 30,000 gallons, if the

12  department does not use the methods established pursuant to

13  the federal regulations implementing the Oil Pollution Act of

14  1990, as amended, the person responsible has the option to pay

15  the amount of compensation calculated pursuant to the

16  statutory compensation schedule established in subsections

17  (4)-(6) and (9) subsection (4) or pay the amount determined by

18  a damage assessment performed by the department. If the person

19  responsible for the discharge elects to have a damage

20  assessment performed, then such person shall notify the

21  department in writing of such decision within 15 days after

22  the discovery of the discharge. The decision to have a damage

23  assessment performed to determine compensation for a discharge

24  is shall be final; the person responsible for a discharge may

25  not later elect to use the statutory compensation schedule for

26  computing compensation. Failure to make such notice shall

27  result in the amount of compensation for the total damage to

28  natural resources being calculated based on the statutory

29  compensation schedule unless the department uses the methods

30  established pursuant to the federal regulations implementing

31  the Oil Pollution Act of 1990, as amended. Regardless of the

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 1  schedule or method used, the compensation shall be paid within

 2  90 days after receipt of a written request from the

 3  department.

 4         (b)  If, pursuant to paragraph (a), In the event the

 5  person responsible for a discharge greater than 30,000 gallons

 6  elects to have a departmental damage assessment performed,

 7  said person shall pay to the department an amount equal to the

 8  compensation calculated pursuant to subsection (4) for the

 9  discharge using a volume of 30,000 gallons. The payment shall

10  be made within 90 days after receipt of a written request from

11  the department.

12         (c)  After completion of the damage assessment, the

13  department shall advise the person responsible for the

14  discharge of the amount of compensation due to the state. A

15  credit shall be given for the amount paid pursuant to

16  paragraph (b). Payment shall be made within 90 days after

17  receipt of a written request from the department. Unless the

18  department uses the methods established pursuant to the

19  federal regulations implementing the Oil Pollution Act of

20  1990, as amended, In no event shall the total compensation

21  paid pursuant to this section may not be less than the dollar

22  amount calculated pursuant to paragraph (b).

23         (11)(a)  Moneys recovered by the department as

24  compensation for damage to natural resources shall be expended

25  only for the following purposes:

26         1.  To the maximum extent practicable, the restoration

27  of natural resources damaged by the discharge for which

28  compensation is paid.

29         2.  Restoration of damaged resources.

30         3.  Developing restoration and enhancement techniques

31  for natural resources.

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 1         4.  Investigating methods for improving and refining

 2  techniques for containment, abatement, and removal of

 3  pollutants from the environment, especially from mangrove

 4  forests, corals, seagrasses, benthic communities, rookeries,

 5  nurseries, and other habitats which are unique to Florida's

 6  coastal environment.

 7         5.  Developing and updating the "Sensitivity of Coastal

 8  Environments and Wildlife to Spilled Oil in Florida" atlas.

 9         6.  Investigating the long-term effects of pollutant

10  discharges on natural resources, including pelagic organisms,

11  critical habitats, and marine ecosystems.

12         7.  Developing an adequate wildlife rescue and

13  rehabilitation program.

14         8.  Expanding and enhancing the state's pollution

15  prevention and control education program.

16         9.  Restoring natural resources previously impacted by

17  pollutant discharges, but never completely restored.

18         10.  Funding alternative projects selected by the Board

19  of Trustees of the Internal Improvement Trust Fund.  Any such

20  project shall be selected on the basis of its anticipated

21  benefits to the marine natural resources available to the

22  residents of this state who previously benefited from the

23  injured or destroyed nonrestorable natural resources.

24         (b)  All interest earned from investment of moneys

25  recovered by the department for damage to natural resources

26  shall be expended only for the activities described in

27  paragraph (a).

28         (c)  The person or parties responsible for a discharge

29  for which the department has requested compensation for damage

30  pursuant to this section shall pay the department, within 90

31  days after receipt of the request, the entire amount due to

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 1  the state. In the event that payment is not made within the 90

 2  days, the person or parties are liable for interest on the

 3  outstanding balance, which interest shall be calculated at the

 4  rate prescribed under s. 55.03.

 5         (12)  Any determination or assessment of damage to

 6  natural resources for the purposes of this section by the

 7  department in accordance with the compensation sections or in

 8  accordance with the rules adopted under subsection (10) shall

 9  have the force and effect of rebuttable presumption on behalf

10  of the department in any administrative or judicial

11  proceeding.

12         (13)  There shall be no double recovery under this law

13  for natural resource damage resulting from a discharge,

14  including the costs of damage assessment or restoration,

15  rehabilitation, replacement, or acquisition for the same

16  incident and natural resource.  The department shall meet with

17  and develop memoranda of understanding with appropriate

18  federal trustees as defined in Pub. L. No. 101-380 (Oil

19  Pollution Act of 1990) to provide further assurances of no

20  double recovery.

21         (14)  The department must review the amount of

22  compensation assessed pursuant to the damage assessment

23  formula established in this section and report its findings to

24  the 1995 Legislature.  Thereafter, the department must conduct

25  such a review and report its findings to the Legislature

26  biennially.

27         (15)  The department shall adopt rules necessary or

28  convenient for carrying out the duties, obligations, powers,

29  and responsibilities set forth in this section.

30         Section 2.  This act shall take effect July 1, 2004.

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Authorizes the Department of Environmental Protection to
      use methods established pursuant to federal regulations
 4    to calculate compensation for damage from pollution of
      natural resources.  Provides that the damage calculation
 5    methods now used remain applicable if the federal methods
      are not used.
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