HB 0293 2004
1	A bill to be entitled
2	An act relating to water resources; amending s. 159.803,
3	F.S.; revising the definition of "priority project";
4	amending s. 163.3167, F.S.; requiring local governments to
5	include projected water use in comprehensive plans;
6	amending s. 367.081, F.S.; revising procedure for fixing
7	and changing rates to include the recovery of costs of
8	alternative water supply facilities; amending s. 367.0814,
9	F.S.; revising limit on the amount of revenues received by
10	a utility to qualify for staff assistance in changing
11	rates or charges; creating s. 373.227, F.S.; providing for
12	the development of a water conservation guidance manual by
13	the Department of Environmental Protection; providing for
14	purpose and contents of the manual and requirements with
15	respect thereto; requiring the Department of Environmental
16	Protection to adopt the manual by rule by a specified
17	date; providing program requirements for public water
18	supply utilities that choose to design a comprehensive
19	water conservation program based on the water conservation
20	guidance manual; amending s. 373.0361, F.S.; providing for
21	a public workshop on the development of regional water
22	supply plans that include the consideration of population
23	projections; providing for a list of water source options
24	in regional water supply plans; providing additional
25	regional water supply plan components; including
26	conservation measures in regional water supply plans;
27	revising specified reporting requirements of the
28	Department of Environmental Protection; providing that a
29	district water management plan may not be used as criteria
30	for the review of permits for consumptive uses of water
31	unless the plan or applicable portion thereof has been
32	adopted by rule; providing construction; amending s.
33	373.0831, F.S.; revising the criteria by which water
34	supply development projects may receive priority
35	consideration for funding assistance; providing for
36	permitting and funding of a proposed alternative water
37	supply project identified in the relevant approved
38	regional water supply plan; amending s. 373.116, F.S.;
39	providing that specified notice of application for a
40	consumptive use permit may be transmitted by electronic
41	mail; amending s. 373.1961, F.S.; removing obsolete
42	language; providing funding priority; providing for the
43	establishment of a revolving loan fund for alternative
44	water supply projects; providing conditions for certain
45	projects to receive funding assistance; amending s.
46	373.1963, F.S.; prohibiting the West Coast Regional Water
47	Supply Authority from seeking permits from the Southwest
48	Florida Water Management District for the consumptive use
49	of water from groundwater in a specified area; amending s.
50	373.223, F.S.; requiring the Department of Environmental
51	Protection and the water management districts to submit
52	specified recommendations to the Legislature; creating s.
53	373.2234, F.S.; authorizing the governing board of a water
54	management district to adopt rules identifying certain
55	preferred water supply sources; providing requirements
56	with respect to such rules; providing construction;
57	amending s. 373.250, F.S.; authorizing water management
58	districts to require the use of reclaimed water in lieu of
59	surface or groundwater when the use of uncommitted
60	reclaimed water is environmentally, economically, and
61	technically feasible; providing construction with respect
62	to such authority; amending s. 373.536, F.S.; expanding
63	requirements of the 5-year water resource development work
64	program for water management districts; providing
65	legislative findings and intent with regard to landscape
66	irrigation design; requiring water management districts to
67	develop landscape irrigation and xeriscape design
68	standards; amending s. 378.212, F.S.; providing for the
69	granting of a variance from pt. III of ch. 378, F.S.,
70	relating to phosphate land reclamation, for specified
71	reclamation, and from pt. IV of ch. 373, for certain
72	projects under described circumstances; amending s.
73	378.404, F.S.; authorizing the department to grant
74	variances from the provisions of pt. IV of ch. 378 to
75	accommodate reclamation that provides for water supply
76	development or water resource development under specified
77	circumstances; amending s. 403.064, F.S.; revising
78	provisions relating to reuse feasibility studies;
79	providing for metering use of reclaimed water and volume-
80	based rates therefor; requiring wastewater utilities to
81	submit plans for metering use and volume-based rate
82	structures to the department; amending s. 403.1835, F.S.;
83	authorizing the Department of Environmental Protection to
84	make specified deposits for the purpose of enabling below-
85	market interest rate loans for treatment of polluted
86	water; providing for development of rate structures for
87	alternative water supply systems; providing criteria;
88	providing for a study of the feasibility of discharging
89	reclaimed wastewater into canals and the aquifer system in
90	a specified area as an environmentally acceptable means of
91	accomplishing described objectives; requiring reports;
92	providing severability; providing effective dates.
93
94	Be It Enacted by the Legislature of the State of Florida:
95
96	Section 1. Subsection (5) of section 159.803, Florida
97	Statutes, is amended to read:
98	159.803 Definitions.--As used in this part, the term:
99	(5) "Priority project" means a solid waste disposal
100	facility or a sewage facility, as such terms are defined in s.
101	142 of the Code, or water facility, as defined in s. 142 of the
102	Code, which is operated by a member-owned, not-for-profit
103	utility,or any project which is to be located in an area which
104	is an enterprise zone designated pursuant to s. 290.0065.
105	Section 2. Subsection (13) is added to section 163.3167,
106	Florida Statutes, to read:
107	163.3167 Scope of act.--
108	(13) Each local government shall address in its
109	comprehensive plan, as enumerated in this chapter, the water
110	supply projects necessary to meet and achieve the existing and
111	projected water use demand for the established planning period,
112	considering the applicable plan developed pursuant to s.
113	373.0361.
114	Section 3. Subsection (2) of section 367.081, Florida
115	Statutes, is amended to read:
116	367.081 Rates; procedure for fixing and changing.--
117	(2)(a)1. The commission shall, either upon request or upon
118	its own motion, fix rates which are just, reasonable,
119	compensatory, and not unfairly discriminatory. In every such
120	proceeding, the commission shall consider the value and quality
121	of the service and the cost of providing the service, which
122	shall include, but not be limited to, debt interest; the
123	requirements of the utility for working capital; maintenance,
124	depreciation, tax, and operating expenses incurred in the
125	operation of all property used and useful in the public service;
126	and a fair return on the investment of the utility in property
127	used and useful in the public service. Pursuant to s.
128	373.1961(2)(l), the commission shall allow recovery of the full,
129	prudently incurred costs of alternative water supply facilities.
130	However, the commission shall not allow the inclusion of
131	contributions-in-aid-of-construction in the rate base of any
132	utility during a rate proceeding, nor shall the commission
133	impute prospective future contributions-in-aid-of-construction
134	against the utility's investment in property used and useful in
135	the public service; and accumulated depreciation on such
136	contributions-in-aid-of-construction shall not be used to reduce
137	the rate base, nor shall depreciation on such contributed assets
138	be considered a cost of providing utility service.
139	2. For purposes of such proceedings, the commission shall
140	consider utility property, including land acquired or facilities
141	constructed or to be constructed within a reasonable time in the
142	future, not to exceed 24 months after the end of the historic
143	base year used to set final rates unless a longer period is
144	approved by the commission, to be used and useful in the public
145	service, if:
146	a. Such property is needed to serve current customers;
147	b. Such property is needed to serve customers 5 years
148	after the end of the test year used in the commission's final
149	order on a rate request as provided in subsection(6) at a growth
150	rate for equivalent residential connections not to exceed 5
151	percent per year; or
152	c. Such property is needed to serve customers more than 5
153	full years after the end of the test year used in the
154	commission's final order on a rate request as provided in
155	subsection (6) only to the extent that the utility presents
156	clear and convincing evidence to justify such consideration.
157
158	Notwithstanding the provisions of this paragraph, the commission
159	shall approve rates for service which allow a utility to recover
160	from customers the full amount of environmental compliance
161	costs. Such rates may not include charges for allowances for
162	funds prudently invested or similar charges. For purposes of
163	this requirement, the term "environmental compliance costs"
164	includes all reasonable expenses and fair return on any prudent
165	investment incurred by a utility in complying with the
166	requirements or conditions contained in any permitting,
167	enforcement, or similar decisions of the United States
168	Environmental Protection Agency, the Department of Environmental
169	Protection, a water management district, or any other
170	governmental entity with similar regulatory jurisdiction.
171	(b) In establishing initial rates for a utility, the
172	commission may project the financial and operational data as set
173	out in paragraph (a) to a point in time when the utility is
174	expected to be operating at a reasonable level of capacity.
175	Section 4. Subsection (1) of section 367.0814, Florida
176	Statutes, is amended to read:
177	367.0814 Staff assistance in changing rates and charges;
178	interim rates.--
179	(1) The commission may establish rules by which a water or
180	wastewater utility whose gross annual revenues are $200,000
181	$150,000or less may request and obtain staff assistance for the
182	purpose of changing its rates and charges. A utility may request
183	staff assistance by filing an application with the commission.
184	Section 5. Section 373.227, Florida Statutes, is created
185	to read:
186	373.227 Water conservation guidance manual.--
187	(1) The Legislature recognizes that the proper
188	conservation of water is an important means of achieving the
189	economical and efficient utilization of water necessary to
190	constitute a reasonable-beneficial use. The Legislature
191	encourages the development and use of water conservation
192	measures that are effective, flexible, and affordable. In the
193	context of the use of water for public supply provided by a
194	water utility, the Legislature intends for a variety of
195	conservation measures to be available and used to encourage
196	efficient water use. The Legislature finds that the social,
197	economic, and cultural conditions of this state relating to the
198	use of public water supply vary by geographic region, and thus
199	water utilities must have the flexibility to tailor water
200	conservation measures to best suit their individual
201	circumstances. For purposes of this section, the term "public
202	water supply utility” shall include both publicly owned and
203	privately owned public water supply utilities.
204	(2) In order to implement the findings in subsection (1),
205	the Department of Environmental Protection shall develop a water
206	conservation guidance manual containing a menu of water
207	conservation measures from which public water supply utilities
208	may select in the development of a comprehensive, goal-based
209	water conservation program tailored for their individual service
210	areas that is effective and does not impose undue costs or
211	burdens on customers. The water conservation guidance manual
212	shall promote statewide consistency in the approach to utility
213	conservation while maintaining appropriate flexibility. The
214	manual may contain measures such as: water conservation audits,
215	informative billing practices to educate customers on their
216	patterns of water use, the costs of water, and ways to conserve
217	water; ordinances requiring low-flow plumbing fixtures and
218	efficient landscape irrigation; rebate programs for the
219	installation of water-saving plumbing or appliances; general
220	water conservation educational programs, including bill inserts;
221	measures to promote the more effective and efficient reuse of
222	reclaimed water; water conservation or drought rate structures
223	that encourage customers to conserve water through appropriate
224	price signals; and programs to apply utility profits generated
225	through conservation and drought rates to additional water
226	conservation programs or water supply development. The manual
227	shall specifically state that it is the responsibility of the
228	appropriate utility to determine the specific rates it will
229	charge its customers and that the role of the department or
230	water management district is confined to the review of those
231	rate structures to determine whether they encourage water
232	conservation. The water conservation guidance manual shall also
233	state that a utility need not adopt a water conservation or
234	drought rate structure if the utility employs other measures
235	that are equally or more effective. The manual shall provide for
236	different levels of complexity and expected levels of effort in
237	conservation programs depending on the size of the utility.
238	However, all utilities will be expected to have at least basic
239	programs in each of the following areas:
240	(a) Individual metering, to the extent feasible as
241	determined by the utility.
242	(b) Water accounting and loss control.
243	(c) Cost-of-service accounting.
244	(d) Information programs on water conservation.
245	(e) Landscaping water efficiency programs.
246	(3) The Department of Environmental Protection shall
247	develop the water conservation guidance manual no later than
248	June 15, 2005. The department shall develop the manual in
249	consultation with interested parties, which, at a minimum, shall
250	include representatives from the water management districts,
251	three utilities that are members of the American Water Works
252	Association, two utilities that are members of the Florida Water
253	Environment Association, a representative of the Florida Chamber
254	of Commerce, representatives of counties and municipalities, and
255	representatives of environmental organizations. By December 15,
256	2005, the department shall adopt the water conservation guidance
257	manual by rule. Once the department adopts the water
258	conservation guidance manual by rule, the water management
259	districts may apply the manual and any revisions thereto in the
260	review of water conservation requirements for obtaining a permit
261	pursuant to part II without the need to adopt the manual
262	pursuant to s. 120.54. Once the water conservation guidance
263	manual is adopted by rule, a public water supply utility may
264	choose to comply with the standard water conservation
265	requirements adopted by the appropriate water management
266	district for obtaining a consumptive use permit from that
267	district, or may choose to develop a comprehensive, goal-based
268	water conservation program from the options contained in the
269	manual. If the utility chooses to design a comprehensive water
270	conservation program based on the water conservation guidance
271	manual, the proposed program must include the following:
272	(a) An inventory of water system characteristics and
273	conservation opportunities.
274	(b) Demand forecasts.
275	(c) An explanation of the proposed program.
276	(d) Specific numeric water conservation targets for the
277	utility as a whole and for appropriate customer classes, with a
278	justification of why the numeric targets are appropriate based
279	on that utility’s particular customer characteristics and
280	conservation opportunities.
281	(e) A demonstration that the program will promote
282	effective water conservation at least as well as standard water
283	use conservation requirements adopted by the appropriate water
284	management district.
285	(f) A timetable for the utility and the water management
286	district to evaluate progress in meeting the water conservation
287	targets and making needed program modifications.
288	(4) If the utility provides reasonable assurance that the
289	proposed conservation program is consistent with the water
290	conservation guidance manual and contains the elements specified
291	in subsection (3), then the water management district shall
292	approve the proposed program and the program shall satisfy water
293	conservation requirements imposed as a condition of obtaining a
294	permit under part II. The department, in consultation with the
295	parties specified in subsection (3), may periodically amend or
296	revise the water conservation guidance manual rule as
297	appropriate to reflect changed circumstances or new technologies
298	or approaches. The findings and provisions in this section shall
299	not be construed to apply to users of water other than public
300	and private water supply utilities.
301	Section 6. Subsections (1), (2), (5), and (6) of section
302	373.0361, Florida Statutes, are amended to read:
303	373.0361 Regional water supply planning.--
304	(1) By October 1, 1998, the governing board shall initiate
305	water supply planning for each water supply planning region
306	identified in the district water management plan under s.
307	373.036, where it determines that sources of water are not
308	adequate for the planning period to supply water for all
309	existing and projected reasonable-beneficial uses and to sustain
310	the water resources and related natural systems. The planning
311	must be conducted in an open public process, in coordination and
312	cooperation with local governments, regional water supply
313	authorities, government-owned and privately owned water
314	utilities, self-suppliers, and other affected and interested
315	parties. During development, but prior to completion of the
316	regional water supply plan, the district must conduct at least
317	one public workshop to discuss the technical data and modeling
318	tools anticipated to be used to support the plan.A
319	determination by the governing board that initiation of a
320	regional water supply plan for a specific planning region is not
321	needed pursuant to this section shall be subject to s. 120.569.
322	The governing board shall reevaluate such a determination at
323	least once every 5 years and shall initiate a regional water
324	supply plan, if needed, pursuant to this subsection.
325	(2) Each regional water supply plan shall be based on at
326	least a 20-year planning period and shall include, but not be
327	limited to:
328	(a) A water supply development component that includes:
329	1. A quantification of the water supply needs for all
330	existing and reasonably projected future uses within the
331	planning horizon. The level-of-certainty planning goal
332	associated with identifying the water supply needs of existing
333	and future reasonable-beneficial uses shall be based upon
334	meeting those needs for a 1-in-10-year drought event. Population
335	projections used for determining public water supply needs shall
336	be based upon the best available data. In determining the best
337	available data, the district shall consider the University of
338	Florida’s Bureau of Economic and Business Research (BEBR) medium
339	population projections and any population projection data and
340	analysis submitted by a local government pursuant to the public
341	workshop described in subsection (1) when such data and analysis
342	support the local government’s comprehensive plan. Any
343	adjustment of or deviation from the BEBR projections shall be
344	fully described and the original BEBR data shall be presented
345	along with the adjusted data.
346	2. A list of water source options for water supply
347	development, including traditional and alternative source
348	options sources, from which local government, government-owned
349	and privately owned utilities, self-suppliers, and others may
350	choose, for water supply development, the total capacity of
351	which will, in conjunction with water conservation and other
352	demand management measures,exceed the needs identified in
353	subparagraph 1.
354	3. For each option listed in subparagraph 2., the
355	estimated amount of water available for use and the estimated
356	costs of and potential sources of funding for water supply
357	development.
358	4. A list of water supply development projects that meet
359	the criteria in s. 373.0831(4).
360	(b) A water resource development component that includes:
361	1. A listing of those water resource development projects
362	that support water supply development.
363	2. For each water resource development project listed:
364	a. An estimate of the amount of water to become available
365	through the project.
366	b. The timetable for implementing or constructing the
367	project and the estimated costs for implementing, operating, and
368	maintaining the project.
369	c. Sources of funding and funding needs.
370	d. Who will implement the project and how it will be
371	implemented.
372	(c) The recovery and prevention strategy described in s.
373	373.0421(2).
374	(d) A funding strategy for water resource development
375	projects, which shall be reasonable and sufficient to pay the
376	cost of constructing or implementing all of the listed projects.
377	(e) Consideration of how the options addressed in
378	paragraphs (a) and (b) serve the public interest or save costs
379	overall by preventing the loss of natural resources or avoiding
380	greater future expenditures for water resource development or
381	water supply development. However, unless adopted by rule, these
382	considerations do not constitute final agency action.
383	(f) The technical data and information applicable to the
384	planning region which are contained in the district water
385	management plan and are necessary to support the regional water
386	supply plan.
387	(g) The minimum flows and levels established for water
388	resources within the planning region.
389	(h) Reservations of water adopted by rule pursuant to s.
390	373.223(4).
391	(i) An analysis, developed in cooperation with the
392	department, of areas or instances in which the variance
393	provisions of s. 378.212(1)(g) or s. 378.404(9) may be used to
394	create water supply development or water resource development
395	projects.
396
397	Within boundaries of a regional water supply authority, those
398	parts of the water supply development component of the regional
399	water supply plan which deal with or affect public utilities and
400	public water supply shall be developed jointly by such authority
401	and the district for those areas served by the authority and its
402	member governments.
403	(5) By November 15, 1997, and Annually and in conjunction
404	with the reporting requirements of s. 373.536(6)(a)4.
405	thereafter, the department shall submit to the Governor and the
406	Legislature a report on the status of regional water supply
407	planning in each district. The report shall include:
408	(a) A compilation of the estimated costs of and potential
409	sources of funding for water resource development and water
410	supply development projects, as identified in the water
411	management district regional water supply plans.
412	(b) A description of each district's progress toward
413	achieving its water resource development objectives, as directed
414	by s. 373.0831(3), including the district's implementation of
415	its 5-year water resource development work program.
416	(c) An assessment of the overall progress being made to
417	develop water supply that is consistent with regional water
418	supply plans to meet existing and future reasonable-beneficial
419	needs during a 1-in-10-year drought.
420	(6) Nothing contained in the water supply development
421	component of the district water management plan shall be
422	construed to require local governments, government-owned or
423	privately owned water utilities, self-suppliers, or other water
424	suppliers to select a water supply development option identified
425	in the component merely because it is identified in the plan,
426	nor may the plan be used in the review of permits under part II
427	unless the plan, or an applicable portion thereof, has been
428	adopted by rule. However, this subsection does not prohibit a
429	water management district from employing the data or other
430	information used to establish the plan in reviewing permits
431	under part II, nor shall it notbe construed to limit the
432	authority of the department or governing board under part II.
433	Section 7. Subsection (3) of section 373.0831, Florida
434	Statutes, is amended, and paragraph (c) is added to
435	subsection(4) of said section, to read:
436	373.0831 Water resource development; water supply
437	development.--
438	(3) The water management districts shall fund and
439	implement water resource development as defined in s. 373.019.
440	The water management districts are encouraged to implement water
441	resource development as expeditiously as possible in areas
442	subject to regional water supply plans.Each governing board
443	shall include in its annual budget the amount needed for the
444	fiscal year to implement water resource development projects, as
445	prioritized in its regional water supply plans.
446	(4)
447	(c) If a proposed alternative water supply development
448	project is identified in the relevant approved regional water
449	supply plan, the project shall receive:
450	1. A 20-year consumptive use permit, if it otherwise meets
451	the permit requirements under ss. 373.223 and 373.236 and rules
452	adopted thereunder.
453	2. Priority funding pursuant to s. 373.1961(2) if the
454	project meets one of the criteria in this subsection.
455	Section 8. Section 373.116, Florida Statutes, is amended
456	to read:
457	373.116 Procedure for water use and impoundment
458	construction permit applications.--
459	(1) Applications for water use permits, under part II of
460	this chapter; for permits for construction or alteration of
461	dams, impoundments, reservoirs, and appurtenant works, under
462	part IV of this chapter; and for permits under s. 403.812 shall
463	be filed with the water management district on appropriate forms
464	provided by the governing board.
465	(2) Upon receipt of an application for a permit of the
466	type referred to in subsection (1), the governing board shall
467	cause a notice thereof to be published in a newspaper having
468	general circulation within the affected area. In addition, the
469	governing board shall send, by regular or electronic mail, a
470	copy of such notice to any person who has filed a written
471	request for notification of any pending applications affecting
472	this particular designated area. Notice of application for the
473	consumptive use of water shall be mailed by regular or
474	electronicmail to the county and appropriate city government
475	from which boundaries the withdrawal is proposed to be made.
476	(3) All permits issued under this section shall include
477	the following language:
478
479	This permit does not convey to the permittee any property rights
480	or privileges other than those specified herein, nor relieve the
481	permittee from complying with any applicable local government,
482	state, or federal law, rule, or ordinance.
483	Section 9. Subsection (2) of section 373.1961, Florida
484	Statutes, is amended to read:
485	373.1961 Water production.--
486	(2) The Legislature finds that, due to a combination of
487	factors, vastly increased demands have been placed on natural
488	supplies of fresh water, and that, absent increased development
489	of alternative water supplies, such demands may increase in the
490	future. The Legislature also finds that potential exists in the
491	state for the production of significant quantities of
492	alternative water supplies, including reclaimed water, and that
493	water production includes the development of alternative water
494	supplies, including reclaimed water, for appropriate uses. It is
495	the intent of the Legislature that utilities develop reclaimed
496	water systems, where reclaimed water is the most appropriate
497	alternative water supply option, to deliver reclaimed water to
498	as many users as possible through the most cost-effective means,
499	and to construct reclaimed water system infrastructure to their
500	owned or operated properties and facilities where they have
501	reclamation capability. It is also the intent of the Legislature
502	that the water management districts which levy ad valorem taxes
503	for water management purposes should share a percentage of those
504	tax revenues with water providers and users, including local
505	governments, water, wastewater, and reuse utilities, municipal,
506	industrial, and agricultural water users, and other public and
507	private water users, to be used to supplement other funding
508	sources in the development of alternative water supplies. The
509	Legislature finds that public moneys or services provided to
510	private entities for such uses constitute public purposes which
511	are in the public interest. In order to further the development
512	and use of alternative water supply systems, including reclaimed
513	water systems, the Legislature provides the following:
514	(a) The governing boards of the water management districts
515	where water resource caution areas have been designated shall
516	include in their annual budgets an amount for the development of
517	alternative water supply systems, including reclaimed water
518	systems, pursuant to the requirements of this subsection.
519	Beginning in 1996,Such amounts shall be made available to water
520	providers and users no later than December 31 of each year,
521	through grants, matching grants, revolving loans, or the use of
522	district lands or facilities pursuant to the requirements of
523	this subsection and guidelines established by the districts. In
524	making grants or loans, funding priority shall be given to
525	projects in accordance with s. 373.0831(4). Without diminishing
526	amounts available through other means described in this
527	paragraph, the governing boards are encouraged to consider
528	establishing revolving loan funds to expand the total funds
529	available to accomplish the objectives of this section. A
530	revolving loan fund created pursuant to this paragraph shall be
531	a nonlapsing fund from which the water management district may
532	make loans with interest rates below prevailing market rates to
533	public or private entities for the purposes described in this
534	section. The governing board may adopt resolutions to establish
535	revolving loan funds which shall specify the details of the
536	administration of the fund, the procedures for applying for
537	loans from the fund, the criteria for awarding loans from the
538	fund, the initial capitalization of the fund, and the goals for
539	future capitalization of the fund in subsequent budget years.
540	Revolving loan funds created pursuant to this paragraph shall be
541	used to expand the total sums and sources of cooperative funding
542	available for the development of alternative water supplies. The
543	Legislature does not intend for the creation of revolving loan
544	trust funds to supplant or otherwise reduce existing sources or
545	amounts of funds currently available through other means.
546	(b) It is the intent of the Legislature that for each
547	reclaimed water utility, or any other utility, which receives
548	funds pursuant to this subsection, the appropriate rate-setting
549	authorities should develop rate structures for all water,
550	wastewater, and reclaimed water and other alternative water
551	supply utilities in the service area of the funded utility,
552	which accomplish the following:
553	1. Provide meaningful progress toward the development and
554	implementation of alternative water supply systems, including
555	reclaimed water systems;
556	2. Promote the conservation of fresh water withdrawn from
557	natural systems;
558	3. Provide for an appropriate distribution of costs for
559	all water, wastewater, and alternative water supply utilities,
560	including reclaimed water utilities, among all of the users of
561	those utilities; and
562	4. Prohibit rate discrimination within classes of utility
563	users.
564	(c) Funding assistance provided by the water management
565	districts for a water reuse system project shall include the
566	following grant or loan conditions for that project when the
567	water management district determines such conditions will
568	encourage water use efficiency:
569	1. Metering of reclaimed water use for the following
570	activities: residential irrigation, agricultural irrigation,
571	industrial uses except for electric utilities as defined in s.
572	366.02(2), golf course irrigation, landscape irrigation,
573	irrigation of other public access areas, commercial and
574	institutional uses such as toilet flushing, and transfers to
575	other reclaimed water utilities.
576	2. Implementation of reclaimed water rate structures based
577	on actual use of reclaimed water for the types of reuse
578	activities listed in subparagraph 1.
579	3. Implementation of education programs to inform the
580	public about water issues, water conservation, and the
581	importance and proper use of reclaimed water.
582	4. Development of location data for key reuse facilities.
583	(d)(c)In order to be eligible for funding pursuant to
584	this subsection, a project must be consistent with a local
585	government comprehensive plan and the governing body of the
586	local government must require all appropriate new facilities
587	within the project's service area to connect to and use the
588	project's alternative water supplies. The appropriate local
589	government must provide written notification to the appropriate
590	district that the proposed project is consistent with the local
591	government comprehensive plan.
592	(e)(d)Any and all revenues disbursed pursuant to this
593	subsection shall be applied only for the payment of capital or
594	infrastructure costs for the construction of alternative water
595	supply systems that provide alternative water supplies.
596	(f)(e)By January 1 of each year, the governing boards
597	shall make available written guidelines for the disbursal of
598	revenues pursuant to this subsection. Such guidelines shall
599	include at minimum:
600	1. An application process and a deadline for filing
601	applications annually.
602	2. A process for determining project eligibility pursuant
603	to the requirements of paragraphs (d) (c) and (e) (d).
604	3. A process and criteria for funding projects pursuant to
605	this subsection that cross district boundaries or that serve
606	more than one district.
607	(g)(f)The governing board of each water management
608	district shall establish an alternative water supplies grants
609	advisory committee to recommend to the governing board projects
610	for funding pursuant to this subsection. The advisory committee
611	members shall include, but not be limited to, one or more
612	representatives of county, municipal, and investor-owned private
613	utilities, and may include, but not be limited to,
614	representatives of agricultural interests and environmental
615	interests. Each committee member shall represent his or her
616	interest group as a whole and shall not represent any specific
617	entity. The committee shall apply the guidelines and project
618	eligibility criteria established by the governing board in
619	reviewing proposed projects. After one or more hearings to
620	solicit public input on eligible projects, the committee shall
621	rank the eligible projects and shall submit them to the
622	governing board for final funding approval. The advisory
623	committee may submit to the governing board more projects than
624	the available grant money would fund.
625	(h)(g)All revenues made available annually pursuant to
626	this subsection must be encumbered annually by the governing
627	board if it approves projects sufficient to expend the available
628	revenues. Funds must be disbursed within 36 months after
629	encumbrance.
630	(i)(h)For purposes of this subsection, alternative water
631	supplies are supplies of water that have been reclaimed after
632	one or more public supply, municipal, industrial, commercial, or
633	agricultural uses, or are supplies of stormwater, or brackish or
634	salt water, that have been treated in accordance with applicable
635	rules and standards sufficient to supply the intended use.
636	(j)(i)This subsection shall not be subject to the
637	rulemaking requirements of chapter 120.
638	(k)(j)By January 30 of each year, each water management
639	district shall submit an annual report to the Governor, the
640	President of the Senate, and the Speaker of the House of
641	Representatives which accounts for the disbursal of all budgeted
642	amounts pursuant to this subsection. Such report shall describe
643	all projects funded and shall account separately for moneys
644	provided through grants, matching grants, revolving loans, and
645	the use of district lands or facilities.
646	(l)(k)The Florida Public Service Commission shall allow
647	entities under its jurisdiction constructing alternative water
648	supply facilities, including but not limited to aquifer storage
649	and recovery wells, to recover the full, prudently incurred cost
650	of such facilities through their rate structure. Every component
651	of an alternative water supply facility constructed by an
652	investor-owned utility shall be recovered in current rates.
653	Section 10. Subsection (9) is added to section 373.1963,
654	Florida Statutes, to read:
655	373.1963 Assistance to West Coast Regional Water Supply
656	Authority.--
657	(9) It is the intent of the Legislature that wetland areas
658	in northeastern Hillsborough County which have not yet been
659	adversely impacted by groundwater withdrawals for consumptive
660	use not be subject to groundwater withdrawals by the development
661	of wellfields by the authority. In order to protect the wetlands
662	in this area, the authority is hereby prohibited from seeking
663	permits from the Southwest Florida Water Management District for
664	the consumptive use of water from groundwater in northeastern
665	Hillsborough County north of Knights Griffin Road and east of
666	State Road 39.
667	Section 11. Subsection (5) is added to section 373.223,
668	Florida Statutes, to read:
669	373.223 Conditions for a permit.--
670	(5) The Legislature finds that the issuance of consumptive
671	use permits has a direct relation to efficient and effective
672	water resource development. The Legislature further finds that
673	the management of consumptive use permits has a direct relation
674	to efficient and effective water supply development. To help
675	identify the changes necessary to better utilize these permits,
676	the Legislature directs that the Department of Environmental
677	Protection and each water management district submit
678	recommendations to the appropriate substantive committees of
679	each house of the Legislature by December 1, 2004. The
680	recommendations shall identify alternative methods of extending
681	the use of existing water resources, including, but not limited
682	to, the potential rights of existing permitholders to share
683	water allocated under a consumptive use permit. The department
684	and the districts are encouraged to use public hearings to
685	gather information and shall include information provided by
686	basin boards and regional water supply authorities.
687	Section 12. Section 373.2234, Florida Statutes, is created
688	to read:
689	373.2234 Preferred water supply sources.--The governing
690	board of the district is authorized to adopt rules identifying
691	preferred water supply sources for which there is sufficient
692	data to establish that the source can be used to provide a
693	substantial new water supply to meet existing and reasonably
694	anticipated water needs in a water supply planning region
695	identified pursuant to s. 373.0361(1) while sustaining the water
696	resources and related natural systems. Such rules shall, at a
697	minimum, contain a description of the source and an assessment
698	of the water the source is projected to produce. If a
699	consumptive use permit applicant proposes to use such a source
700	consistent with the assessment, the proposed use shall be
701	subject to the provisions of s. 373.223(1), but such proposed
702	use shall be a factor deemed to be consistent with the public
703	interest pursuant to s. 373.223(1)(c). A consumptive use permit
704	issued approving the use of such a source shall be for at least
705	20 years and may be subject to the provisions of s. 373.226(3).
706	However, nothing in this section shall be construed to provide
707	that the use of nonpreferred sources must receive a permit
708	duration of less than 20 years or that such nonpreferred sources
709	are not consistent with the public interest.
710	Section 13. Paragraph (c) is added to subsection (2) of
711	section 373.250, Florida Statutes, to read:
712	373.250 Reuse of reclaimed water.--
713	(2)
714	(c) A water management district may require the use of
715	reclaimed water in lieu of surface water or groundwater when the
716	use of uncommitted reclaimed water is environmentally,
717	economically, and technically feasible. However, while
718	recognizing that the state’s surface water and groundwater are
719	public resources, nothing in this paragraph shall be construed
720	to give a water management district the authority to require a
721	provider of reclaimed water to redirect reclaimed water from one
722	user to another or to provide uncommitted water to a specific
723	user if such water is anticipated to be used by the provider, or
724	a different user selected by the provider, within a reasonable
725	amount of time.
726	Section 14. Paragraph (a) of subsection (6) of section
727	373.536, Florida Statutes, is amended to read:
728	373.536 District budget and hearing thereon.--
729	(6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
730	WATER RESOURCE DEVELOPMENT WORK PROGRAM.--
731	(a) Each district must, by the date specified for each
732	item, furnish copies of the following documents to the Governor,
733	the President of the Senate, the Speaker of the House of
734	Representatives, the chairs of all legislative committees and
735	subcommittees having substantive or fiscal jurisdiction over the
736	districts, as determined by the President of the Senate or the
737	Speaker of the House of Representatives as applicable, the
738	secretary of the department, and the governing board of each
739	county in which the district has jurisdiction or derives any
740	funds for the operations of the district:
741	1. The adopted budget, to be furnished within 10 days
742	after its adoption.
743	2. A financial audit of its accounts and records, to be
744	furnished within 10 days after its acceptance by the governing
745	board. The audit must be conducted in accordance with the
746	provisions of s. 11.45 and the rules adopted thereunder. In
747	addition to the entities named above, the district must provide
748	a copy of the audit to the Auditor General within 10 days after
749	its acceptance by the governing board.
750	3. A 5-year capital improvements plan, to be furnished
751	within 45 days after the adoption of the final budget. The plan
752	must include expected sources of revenue for planned
753	improvements and must be prepared in a manner comparable to the
754	fixed capital outlay format set forth in s. 216.043.
755	4. A 5-year water resource development work program to be
756	furnished within 45 days after the adoption of the final budget.
757	The program must describe the district's implementation strategy
758	for the water resource development component of each approved
759	regional water supply plan developed or revised under s.
760	373.0361. The work program must address all the elements of the
761	water resource development component in the district's approved
762	regional water supply plans and must identify which projects in
763	the work program will provide water, explain how each water
764	resource development project will produce additional water
765	available for consumptive uses, estimate the quantity of water
766	to be produced by each project, and provide an assessment of the
767	contribution of the district’s regional water supply plans in
768	providing sufficient water to meet the water supply needs of
769	existing and future reasonable-beneficial uses for a 1-in-10-
770	year drought event. Within 45 days after its submittal, the
771	department shall review the proposed work program and submit its
772	findings, questions, and comments to the district. The review
773	must include a written evaluation of the program's consistency
774	with the furtherance of the district's approved regional water
775	supply plans, and the adequacy of proposed expenditures. As part
776	of the review, the department shall give interested parties the
777	opportunity to provide written comments on each district's
778	proposed work program. Within 60 days after receipt of the
779	department's evaluation, the governing board shall state in
780	writing to the department which changes recommended in the
781	evaluation it will incorporate into its work program or specify
782	the reasons for not incorporating the changes. The department
783	shall include the district's responses in a final evaluation
784	report and shall submit a copy of the report to the Governor,
785	the President of the Senate, and the Speaker of the House of
786	Representatives.
787	(b) If any entity listed in paragraph (a) provides written
788	comments to the district regarding any document furnished under
789	this subsection, the district must respond to the comments in
790	writing and furnish copies of the comments and written responses
791	to the other entities.
792	Section 15. Landscape irrigation design.--
793	(1) The Legislature finds that multiple areas throughout
794	the state have been identified by water management districts as
795	water resource caution areas, which indicates that in the near
796	future water demand in those areas will exceed the current
797	available water supply and that conservation is one of the
798	mechanisms by which future water demand will be met.
799	(2) The Legislature finds that landscape irrigation
800	comprises a significant portion of water use and that the
801	current typical landscape irrigation system and xeriscape
802	designs offer significant potential water conservation benefits.
803	(3) It is the intent of the Legislature to improve
804	landscape irrigation water use efficiency by ensuring landscape
805	irrigation systems meet or exceed minimum design criteria.
806	(4) The water management districts shall develop and adopt
807	by rule landscape irrigation and xeriscape design standards for
808	new construction that incorporate a landscape irrigation system.
809	The standards shall be based on the irrigation code defined in
810	the Florida Building Code, Plumber’s Volume, Appendix F. Such
811	design standards should promote the effective and efficient use
812	of irrigation water and include a consideration of local
813	demographic, hydrologic, and other considerations as they apply
814	to landscape irrigation water use. When adopting an ordinance or
815	regulation, local governments shall use these approved
816	irrigation design standards.
817	(5) The water management districts shall work with the
818	Florida Chapter of the American Society of Landscape Architects,
819	the Florida Irrigation Society, the Florida Nurserymen and
820	Growers Association, the Department of Agriculture and Consumer
821	Services, the Institute of Food and Agricultural Sciences, the
822	Department of Environmental Protection, the Florida League of
823	Cities, and the Florida Association of Counties to develop
824	scientifically based model guidelines for urban, commercial, and
825	residential landscape irrigation, including drip irrigation, for
826	plants, trees, sod, and other landscaping. Local governments
827	shall use the scientific information when developing landscape
828	irrigation ordinances or guidelines. Every 3 years, the agencies
829	and entities specified in this subsection shall review the model
830	guidelines to determine whether new research findings require a
831	change or modification of the guidelines.
832	Section 16. Paragraph (g) is added to subsection (1) of
833	section 378.212, Florida Statutes, to read:
834	378.212 Variances.--
835	(1) Upon application, the secretary may grant a variance
836	from the provisions of this part or the rules adopted pursuant
837	thereto. Variances and renewals thereof may be granted for any
838	one of the following reasons:
839	(g) To accommodate reclamation that provides water supply
840	development or water resource development not inconsistent with
841	the applicable regional water supply plan approved pursuant to
842	s. 373.0361, provided adverse impacts are not caused to the
843	water resources in the basin. A variance may also be granted
844	from the requirements of part IV of chapter 373, or the rules
845	adopted thereunder, when a project provides an improvement in
846	water availability in the basin and does not cause adverse
847	impacts to water resources in the basin.
848	Section 17. Subsection (9) is added to section 378.404,
849	Florida Statutes, to read:
850	378.404 Department of Environmental Protection; powers and
851	duties.--The department shall have the following powers and
852	duties:
853	(9) To grant variances from the provisions of this part to
854	accommodate reclamation that provides for water supply
855	development or water resource development not inconsistent with
856	the applicable regional water supply plan approved pursuant to
857	s. 373.0361, appropriate stormwater management, improved
858	wildlife habitat, recreation, or a mixture thereof, provided
859	adverse impacts are not caused to the water resources in the
860	basin and public health and safety are not adversely affected.
861	Section 18. Subsections (1) and (6) of section 403.064,
862	Florida Statutes, are amended, and subsection (16) is added to
863	said section, to read:
864	403.064 Reuse of reclaimed water.--
865	(1) The encouragement and promotion of water conservation,
866	and reuse of reclaimed water, as defined by the department, are
867	state objectives and are considered to be in the public
868	interest. The Legislature finds that the reuse of reclaimed
869	water is a critical component of meeting the state's existing
870	and future water supply needs while sustaining natural systems.
871	The Legislature further finds that for those wastewater
872	treatment plants permitted and operated under an approved reuse
873	program by the department, the reclaimed water shall be
874	considered environmentally acceptable and not a threat to public
875	health and safety. The Legislature encourages the development of
876	incentive-based programs for reuse implementation.
877	(6) A reuse feasibility study prepared under subsection
878	(2) satisfies a water management district requirement to conduct
879	a reuse feasibility study imposed on a local government or
880	utility that has responsibility for wastewater management. The
881	data included in the study and the study’s conclusions shall be
882	given significant consideration by the applicant and the
883	appropriate water management district in an analysis of the
884	economic, environmental, and technical feasibility of providing
885	reclaimed water for reuse under part II of chapter 373, and
886	shall be presumed relevant to the determination of feasibility.
887	A water management district shall not require a separate study
888	when a reuse feasibility study has been completed under
889	subsection (2).
890	(16) Utilities implementing reuse projects are encouraged,
891	except in the case of use by electric utilities as defined in s.
892	366.02(2), to meter use of reclaimed water by all end users and
893	to charge for the use of reclaimed water based on the actual
894	volume used when such metering and charges can be shown to
895	encourage water conservation. Metering and the use of volume-
896	based rates are effective water management tools for the
897	following reuse activities: residential irrigation, agricultural
898	irrigation, industrial uses, golf course irrigation, landscape
899	irrigation, irrigation of other public access areas, commercial
900	and institutional uses such as toilet flushing, and transfers to
901	other reclaimed water utilities. Beginning with the submittal
902	due on January 1, 2004, each domestic wastewater utility that
903	provides reclaimed water for the reuse activities listed in this
904	section shall include a summary of its metering and rate
905	structure as part of its annual reuse report to the department.
906	Section 19. Paragraph (b) of subsection (3) of section
907	403.1835, Florida Statutes, is amended, and subsection (12) is
908	added to said section, to read:
909	403.1835 Water pollution control financial assistance.--
910	(3) The department may provide financial assistance
911	through any program authorized under s. 603 of the Federal Water
912	Pollution Control Act (Clean Water Act), Pub. L. No. 92-500, as
913	amended, including, but not limited to, making grants and loans,
914	providing loan guarantees, purchasing loan insurance or other
915	credit enhancements, and buying or refinancing local debt. This
916	financial assistance must be administered in accordance with
917	this section and applicable federal authorities. The department
918	shall administer all programs operated from funds secured
919	through the activities of the Florida Water Pollution Control
920	Financing Corporation under s. 403.1837, to fulfill the purposes
921	of this section.
922	(b) The department may make or request the corporation to
923	make loans, grants, and deposits to other entities eligible to
924	participate in the financial assistance programs authorized
925	under the Federal Water Pollution Control Act, or as a result of
926	other federal action, which entities may pledge any revenue
927	available to them to repay any funds borrowed. Notwithstanding
928	s. 17.57, the department may make deposits to financial
929	institutions that earn less than the prevailing rate for United
930	States Treasury securities with corresponding maturities for the
931	purpose of enabling such financial institutions to make below-
932	market interest rate loans to entities qualified to receive
933	loans under this section and the rules of the department.
934	(12)(a) It is the intent of the Legislature that for each
935	reclaimed water utility or any other utility that receives funds
936	pursuant to this subsection, the appropriate rate-setting
937	authorities should develop rate structures for all water,
938	wastewater, and reclaimed water and other alternative water
939	supply utilities in the service area of the funded utility which
940	accomplish the following:
941	1. Provide meaningful progress toward the development and
942	implementation of alternative water supply systems, including
943	reclaimed water systems.
944	2. Promote the conservation of fresh water withdrawn from
945	natural systems.
946	3. Provide for an appropriate distribution of costs for
947	all water, wastewater, and alternative water supply utilities,
948	including reclaimed water utilities, among all of the users of
949	those utilities.
950	(b) Funding assistance provided for a water reuse system
951	project shall include the following loan conditions for that
952	project where such conditions will encourage water use
953	efficiency:
954	1. Metering of reclaimed water use for the following
955	activities: residential irrigation, agricultural irrigation,
956	industrial uses except for electric utilities as defined in s.
957	366.02(2), golf course irrigation, landscape irrigation,
958	irrigation of other public access areas, and commercial uses.
959	2. Implementation of reclaimed water rate structures based
960	on actual use of reclaimed water for the reuse types listed in
961	subparagraph 1.
962	3. Implementation of education programs to inform the
963	public about water issues, water conservation, and the
964	importance and proper use of reclaimed water.
965	Section 20. The Legislature finds that, within the area
966	identified in the Lower East Coast Regional Water Supply Plan
967	approved by the South Florida Water Management District pursuant
968	to s. 373.0361, Florida Statutes, the groundwater levels can
969	benefit from augmentation. The Legislature finds that the direct
970	or indirect discharge of reclaimed water into canals and the
971	aquifer system for transport and subsequent reuse may provide an
972	environmentally acceptable means to augment water supplies and
973	enhance natural systems; however, the Legislature also
974	recognizes that there are water quality and water quantity
975	issues that must be better understood and resolved. In addition,
976	there are cost savings possible by collocating enclosed conduits
977	for conveyance of water for reuse in this area within canal
978	rights-of-way that should be investigated. Toward that end, the
979	Department of Environmental Protection, in consultation with the
980	South Florida Water Management District, Southeast Florida
981	utilities, affected local governments, including local
982	governments with principal responsibility for the operation and
983	maintenance of a water control system capable of conveying
984	reclaimed wastewater for reuse, representatives of the
985	environmental and engineering communities, public health
986	professionals, and individuals having expertise in water
987	quality, shall conduct a study to investigate the feasibility of
988	discharging reclaimed wastewater into canals and the aquifer
989	system as an environmentally acceptable means of augmenting
990	groundwater supplies, enhancing natural systems, and conveying
991	reuse water within enclosed conduits within the canal right-of-
992	way. The study shall include an assessment of the water quality,
993	water supply, public health, technical, and legal implications
994	related to the canal discharge and collocation concepts. The
995	department shall issue a preliminary written report containing
996	draft findings and recommendations for public comment by
997	November 1, 2004. The department shall provide a written report
998	on the results of its study to the Governor and the relevant
999	substantive committees of the House of Representatives and the
1000	Senate by January 31, 2005. Nothing in this section shall be
1001	used to alter the purpose of the Comprehensive Everglades
1002	Restoration Plan or the implementation of the Water Resources
1003	Development Act of 2000.
1004	Section 21. If any provision of this act or the
1005	application thereof to any person or circumstance is held
1006	invalid, the invalidity does not affect other provisions or
1007	applications of this act which can be given effect without the
1008	invalid provision or application, and to this end the provisions
1009	of this act are declared severable.
1010	Section 22. This act shall take effect upon becoming a law
1011	and shall apply to all contracts pending on that date.