HB 0293

CS

CHAMBER ACTION

1	The Committee on Natural Resources recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5
6	A bill to be entitled
7	An act relating to water resources; amending s. 159.803,
8	F.S.; revising the definition of "priority project";
9	amending s. 163.3167, F.S.; requiring local governments to
10	include projected water use in comprehensive plans;
11	amending s. 367.081, F.S.; revising procedure for fixing
12	and changing rates to include the recovery of costs of
13	alternative water supply facilities; amending s. 367.0814,
14	F.S.; revising limit on the amount of revenues received by
15	a utility to qualify for staff assistance in changing
16	rates or charges; amending s. 367.145, F.S.; clarifying
17	provisions relating to payment of annual regulatory
18	assessment fees by a utility; providing for payment of
19	such fees by small utilities in conjunction with the
20	filing of annual financial reports; creating s. 373.227,
21	F.S.; providing for the development of a water
22	conservation guidance manual by the Department of
23	Environmental Protection; providing for purpose and
24	contents of the manual and requirements with respect
25	thereto; requiring the Department of Environmental
26	Protection to adopt the manual by rule by a specified
27	date; providing program requirements for public water
28	supply utilities that choose to design a comprehensive
29	water conservation program based on the water conservation
30	guidance manual; amending s. 373.0361, F.S.; providing for
31	a public workshop on the development of regional water
32	supply plans that include the consideration of population
33	projections; providing for a list of water source options
34	in regional water supply plans; providing additional
35	regional water supply plan components; including
36	conservation measures in regional water supply plans;
37	revising specified reporting requirements of the
38	Department of Environmental Protection; providing that a
39	district water management plan may not be used as criteria
40	for the review of permits for consumptive uses of water
41	unless the plan or applicable portion thereof has been
42	adopted by rule; providing construction; amending s.
43	373.0831, F.S.; revising the criteria by which water
44	supply development projects may receive priority
45	consideration for funding assistance; providing for
46	permitting and funding of a proposed alternative water
47	supply project identified in the relevant approved
48	regional water supply plan; amending s. 373.116, F.S.;
49	providing that specified notice of application for a
50	consumptive use permit may be transmitted by electronic
51	mail; amending s. 373.1961, F.S.; removing obsolete
52	language; providing funding priority; providing for the
53	establishment of a revolving loan fund for alternative
54	water supply projects; providing conditions for certain
55	projects to receive funding assistance; amending s.
56	373.1963, F.S.; prohibiting the West Coast Regional Water
57	Supply Authority from seeking permits from the Southwest
58	Florida Water Management District for the consumptive use
59	of water from groundwater in a specified area; amending s.
60	373.223, F.S.; requiring the Department of Environmental
61	Protection and the water management districts to submit
62	specified recommendations to the Legislature; creating s.
63	373.2234, F.S.; authorizing the governing board of a water
64	management district to adopt rules identifying certain
65	preferred water supply sources; providing requirements
66	with respect to such rules; providing construction;
67	amending s. 373.250, F.S.; authorizing water management
68	districts to require the use of reclaimed water in lieu of
69	surface or groundwater when the use of uncommitted
70	reclaimed water is environmentally, economically, and
71	technically feasible; providing construction with respect
72	to such authority; amending s. 373.536, F.S.; expanding
73	requirements of the 5-year water resource development work
74	program for water management districts; providing
75	legislative findings and intent with regard to landscape
76	irrigation design; requiring water management districts to
77	develop landscape irrigation and xeriscape design
78	standards; amending s. 403.064, F.S.; revising provisions
79	relating to reuse feasibility studies; providing for
80	metering use of reclaimed water and volume-based rates
81	therefor; requiring wastewater utilities to submit plans
82	for metering use and volume-based rate structures to the
83	department; amending s. 403.1835, F.S.; authorizing the
84	Department of Environmental Protection to make specified
85	deposits for the purpose of enabling below-market interest
86	rate loans for treatment of polluted water; providing for
87	development of rate structures for alternative water
88	supply systems; providing criteria; providing for a study
89	of the feasibility of discharging reclaimed wastewater
90	into canals and the aquifer system in a specified area as
91	an environmentally acceptable means of accomplishing
92	described objectives; requiring reports; providing
93	severability; providing effective dates.
94
95	Be It Enacted by the Legislature of the State of Florida:
96
97	Section 1.  Subsection (5) of section 159.803, Florida
98	Statutes, is amended to read:
99	159.803  Definitions.--As used in this part, the term:
100	(5)  "Priority project" means a solid waste disposal
101	facility or a sewage facility, as such terms are defined in s.
102	142 of the Code, or water facility, as defined in s. 142 of the
103	Code, which is operated by a member-owned, not-for-profit
104	utility, or any project which is to be located in an area which
105	is an enterprise zone designated pursuant to s. 290.0065.
106	Section 2.  Subsection (13) is added to section 163.3167,
107	Florida Statutes, to read:
108	163.3167  Scope of act.--
109	(13)  Each local government shall address in its
110	comprehensive plan, as enumerated in this chapter, the water
111	supply projects necessary to meet and achieve the existing and
112	projected water use demand for the established planning period,
113	considering the applicable plan developed pursuant to s.
114	373.0361.
115	Section 3.  Subsection (2) of section 367.081, Florida
116	Statutes, is amended to read:
117	367.081  Rates; procedure for fixing and changing.--
118	(2)(a)1.  The commission shall, either upon request or upon
119	its own motion, fix rates which are just, reasonable,
120	compensatory, and not unfairly discriminatory. In every such
121	proceeding, the commission shall consider the value and quality
122	of the service and the cost of providing the service, which
123	shall include, but not be limited to, debt interest; the
124	requirements of the utility for working capital; maintenance,
125	depreciation, tax, and operating expenses incurred in the
126	operation of all property used and useful in the public service;
127	and a fair return on the investment of the utility in property
128	used and useful in the public service. Pursuant to s.
129	373.1961(2)(l), the commission shall allow recovery of the full,
130	prudently incurred costs of alternative water supply facilities.
131	However, the commission shall not allow the inclusion of
132	contributions-in-aid-of-construction in the rate base of any
133	utility during a rate proceeding, nor shall the commission
134	impute prospective future contributions-in-aid-of-construction
135	against the utility's investment in property used and useful in
136	the public service; and accumulated depreciation on such
137	contributions-in-aid-of-construction shall not be used to reduce
138	the rate base, nor shall depreciation on such contributed assets
139	be considered a cost of providing utility service.
140	2.  For purposes of such proceedings, the commission shall
141	consider utility property, including land acquired or facilities
142	constructed or to be constructed within a reasonable time in the
143	future, not to exceed 24 months after the end of the historic
144	base year used to set final rates unless a longer period is
145	approved by the commission, to be used and useful in the public
146	service, if:
147	a.  Such property is needed to serve current customers;
148	b.  Such property is needed to serve customers 5 years
149	after the end of the test year used in the commission's final
150	order on a rate request as provided in subsection(6) at a growth
151	rate for equivalent residential connections not to exceed 5
152	percent per year; or
153	c.  Such property is needed to serve customers more than 5
154	full years after the end of the test year used in the
155	commission's final order on a rate request as provided in
156	subsection (6) only to the extent that the utility presents
157	clear and convincing evidence to justify such consideration.
158
159	Notwithstanding the provisions of this paragraph, the commission
160	shall approve rates for service which allow a utility to recover
161	from customers the full amount of environmental compliance
162	costs. Such rates may not include charges for allowances for
163	funds prudently invested or similar charges. For purposes of
164	this requirement, the term "environmental compliance costs"
165	includes all reasonable expenses and fair return on any prudent
166	investment incurred by a utility in complying with the
167	requirements or conditions contained in any permitting,
168	enforcement, or similar decisions of the United States
169	Environmental Protection Agency, the Department of Environmental
170	Protection, a water management district, or any other
171	governmental entity with similar regulatory jurisdiction.
172	(b)  In establishing initial rates for a utility, the
173	commission may project the financial and operational data as set
174	out in paragraph (a) to a point in time when the utility is
175	expected to be operating at a reasonable level of capacity.
176	Section 4.  Subsection (1) of section 367.0814, Florida
177	Statutes, is amended to read:
178	367.0814  Staff assistance in changing rates and charges;
179	interim rates.--
180	(1)  The commission may establish rules by which a water or
181	wastewater utility whose gross annual revenues are $200,000
182	$150,000 or less may request and obtain staff assistance for the
183	purpose of changing its rates and charges. A utility may request
184	staff assistance by filing an application with the commission.
185	Section 5.  Subsection (1) of section 367.145, Florida
186	Statutes, is amended to read:
187	367.145  Regulatory assessment and application fees.--
188	(1)  The commission shall set by rule a regulatory
189	assessment fee that each utility must pay in accordance with s.
190	350.113(3); however, small utilities with annual revenues of
191	less than $200,000 shall pay once a year in conjunction with
192	filing its annual financial report required by commission rule.
193	Notwithstanding any provision of law to the contrary, the amount
194	of the regulatory assessment fee shall not exceed 4.5 percent of
195	the gross revenues of the utility derived from intrastate
196	business, excluding sales for resale made to a regulated
197	company.
198	(a)  A governmental authority to which ownership or control
199	of a utility is transferred is not liable for any fees owed the
200	commission by the utility as of the date of transfer. However,
201	whenever a purchase at wholesale is made of any water or
202	wastewater service and a fee is paid or payable thereon by the
203	selling utility and the utility purchasing such water or
204	wastewater service resells the same directly to customers, the
205	purchasing utility is entitled to, and must receive, credit on
206	such fees as may be due by it under this section to the extent
207	of the fee paid or payable upon such water or wastewater service
208	by the utility from which such purchase was made. All such fee
209	payments and penalties must be deposited in accordance with s.
210	350.113.
211	(b)  In addition to the penalties and interest otherwise
212	provided, the commission may impose a penalty upon a utility for
213	failure to pay regulatory assessment fees in a timely manner in
214	accordance with s. 367.161.
215	Section 6.  Section 373.227, Florida Statutes, is created
216	to read:
217	373.227  Water conservation guidance manual.--
218	(1)  The Legislature recognizes that the proper
219	conservation of water is an important means of achieving the
220	economical and efficient utilization of water necessary to
221	constitute a reasonable-beneficial use. The Legislature
222	encourages the development and use of water conservation
223	measures that are effective, flexible, and affordable. In the
224	context of the use of water for public supply provided by a
225	water utility, the Legislature intends for a variety of
226	conservation measures to be available and used to encourage
227	efficient water use. The Legislature finds that the social,
228	economic, and cultural conditions of this state relating to the
229	use of public water supply vary by geographic region, and thus
230	water utilities must have the flexibility to tailor water
231	conservation measures to best suit their individual
232	circumstances. For purposes of this section, the term "public
233	water supply utility" shall include both publicly owned and
234	privately owned public water supply utilities.
235	(2)  In order to implement the findings in subsection (1),
236	the Department of Environmental Protection shall develop a water
237	conservation guidance manual containing a menu of water
238	conservation measures from which public water supply utilities
239	may select in the development of a comprehensive, goal-based
240	water conservation program tailored for their individual service
241	areas that is effective and does not impose undue costs or
242	burdens on customers. The water conservation guidance manual
243	shall promote statewide consistency in the approach to utility
244	conservation while maintaining appropriate flexibility. The
245	manual may contain measures such as: water conservation audits,
246	informative billing practices to educate customers on their
247	patterns of water use, the costs of water, and ways to conserve
248	water; ordinances requiring low-flow plumbing fixtures and
249	efficient landscape irrigation; rebate programs for the
250	installation of water-saving plumbing or appliances; general
251	water conservation educational programs, including bill inserts;
252	measures to promote the more effective and efficient reuse of
253	reclaimed water; water conservation or drought rate structures
254	that encourage customers to conserve water through appropriate
255	price signals; and programs to apply utility profits generated
256	through conservation and drought rates to additional water
257	conservation programs or water supply development. The manual
258	shall specifically state that it is the responsibility of the
259	appropriate utility to determine the specific rates it will
260	charge its customers and that the role of the department or
261	water management district is confined to the review of those
262	rate structures to determine whether they encourage water
263	conservation. The water conservation guidance manual shall also
264	state that a utility need not adopt a water conservation or
265	drought rate structure if the utility employs other measures
266	that are equally or more effective. The manual shall provide for
267	different levels of complexity and expected levels of effort in
268	conservation programs depending on the size of the utility.
269	However, all utilities will be expected to have at least basic
270	programs in each of the following areas:
271	(a)  Individual metering, to the extent feasible as
272	determined by the utility.
273	(b)  Water accounting and loss control.
274	(c)  Cost-of-service accounting.
275	(d)  Information programs on water conservation.
276	(e)  Landscaping water efficiency programs.
277	(3)  The Department of Environmental Protection shall
278	develop the water conservation guidance manual no later than
279	June 15, 2005. The department shall develop the manual in
280	consultation with interested parties, which, at a minimum, shall
281	include representatives from the water management districts, the
282	Department of Health, three utilities that are members of the
283	American Water Works Association, two utilities that are members
284	of the Florida Water Environment Association, a representative
285	of the Florida Chamber of Commerce, representatives of counties
286	and municipalities, and representatives of environmental
287	organizations. By December 15, 2005, the department shall adopt
288	the water conservation guidance manual by rule. Once the
289	department adopts the water conservation guidance manual by
290	rule, the water management districts may apply the manual and
291	any revisions thereto in the review of water conservation
292	requirements for obtaining a permit pursuant to part II without
293	the need to adopt the manual pursuant to s. 120.54. Once the
294	water conservation guidance manual is adopted by rule, a public
295	water supply utility may choose to comply with the standard
296	water conservation requirements adopted by the appropriate water
297	management district for obtaining a consumptive use permit from
298	that district, or may choose to develop a comprehensive, goal-
299	based water conservation program from the options contained in
300	the manual. If the utility chooses to design a comprehensive
301	water conservation program based on the water conservation
302	guidance manual, the proposed program must include the
303	following:
304	(a)  An inventory of water system characteristics and
305	conservation opportunities.
306	(b)  Demand forecasts.
307	(c)  An explanation of the proposed program.
308	(d)  Specific numeric water conservation targets for the
309	utility as a whole and for appropriate customer classes, with a
310	justification of why the numeric targets are appropriate based
311	on that utility?s particular customer characteristics and
312	conservation opportunities.
313	(e)  A demonstration that the program will promote
314	effective water conservation at least as well as standard water
315	use conservation requirements adopted by the appropriate water
316	management district.
317	(f)  A timetable for the utility and the water management
318	district to evaluate progress in meeting the water conservation
319	targets and making needed program modifications.
320	(4)  If the utility provides reasonable assurance that the
321	proposed conservation program is consistent with the water
322	conservation guidance manual and contains the elements specified
323	in subsection (3), then the water management district shall
324	approve the proposed program and the program shall satisfy water
325	conservation requirements imposed as a condition of obtaining a
326	permit under part II. The department, in consultation with the
327	parties specified in subsection(3), may periodically amend or
328	revise the water conservation guidance manual rule as
329	appropriate to reflect changed circumstances or new technologies
330	or approaches. The findings and provisions in this section shall
331	not be construed to apply to users of water other than public
332	and private water supply utilities.
333	Section 7.  Subsections (1), (2), (5), and (6) of section
334	373.0361, Florida Statutes, are amended to read:
335	373.0361  Regional water supply planning.--
336	(1)  By October 1, 1998, the governing board shall initiate
337	water supply planning for each water supply planning region
338	identified in the district water management plan under s.
339	373.036, where it determines that sources of water are not
340	adequate for the planning period to supply water for all
341	existing and projected reasonable-beneficial uses and to sustain
342	the water resources and related natural systems. The planning
343	must be conducted in an open public process, in coordination and
344	cooperation with local governments, regional water supply
345	authorities, government-owned and privately owned water
346	utilities, self-suppliers, and other affected and interested
347	parties. During development, but prior to completion of the
348	regional water supply plan, the district must conduct at least
349	one public workshop to discuss the technical data and modeling
350	tools anticipated to be used to support the plan. A
351	determination by the governing board that initiation of a
352	regional water supply plan for a specific planning region is not
353	needed pursuant to this section shall be subject to s. 120.569.
354	The governing board shall reevaluate such a determination at
355	least once every 5 years and shall initiate a regional water
356	supply plan, if needed, pursuant to this subsection.
357	(2)  Each regional water supply plan shall be based on at
358	least a 20-year planning period and shall include, but not be
359	limited to:
360	(a)  A water supply development component that includes:
361	1.  A quantification of the water supply needs for all
362	existing and reasonably projected future uses within the
363	planning horizon. The level-of-certainty planning goal
364	associated with identifying the water supply needs of existing
365	and future reasonable-beneficial uses shall be based upon
366	meeting those needs for a 1-in-10-year drought event. Population
367	projections used for determining public water supply needs shall
368	be based upon the best available data. In determining the best
369	available data, the district shall consider the University of
370	Florida?s Bureau of Economic and Business Research(BEBR) median
371	population projections and any population projection data and
372	analysis submitted by a local government pursuant to the public
373	workshop described in subsection(1) when such data and analysis
374	support the local government?s comprehensive plan. Any
375	adjustment of or deviation from the BEBR projections shall be
376	fully described and the original BEBR data shall be presented
377	along with the adjusted data.
378	2.  A list of water source options for water supply
379	development, including traditional and alternative source
380	options sources, from which local government, government-owned
381	and privately owned utilities, self-suppliers, and others may
382	choose, for water supply development, the total capacity of
383	which will, in conjunction with water conservation and other
384	demand management measures, exceed the needs identified in
385	subparagraph 1.
386	3.  For each option listed in subparagraph 2., the
387	estimated amount of water available for use and the estimated
388	costs of and potential sources of funding for water supply
389	development.
390	4.  A list of water supply development projects that meet
391	the criteria in s. 373.0831(4).
392	(b)  A water resource development component that includes:
393	1.  A listing of those water resource development projects
394	that support water supply development.
395	2.  For each water resource development project listed:
396	a.  An estimate of the amount of water to become available
397	through the project.
398	b.  The timetable for implementing or constructing the
399	project and the estimated costs for implementing, operating, and
400	maintaining the project.
401	c.  Sources of funding and funding needs.
402	d.  Who will implement the project and how it will be
403	implemented.
404	(c)  The recovery and prevention strategy described in s.
405	373.0421(2).
406	(d)  A funding strategy for water resource development
407	projects, which shall be reasonable and sufficient to pay the
408	cost of constructing or implementing all of the listed projects.
409	(e)  Consideration of how the options addressed in
410	paragraphs (a) and (b) serve the public interest or save costs
411	overall by preventing the loss of natural resources or avoiding
412	greater future expenditures for water resource development or
413	water supply development. However, unless adopted by rule, these
414	considerations do not constitute final agency action.
415	(f)  The technical data and information applicable to the
416	planning region which are contained in the district water
417	management plan and are necessary to support the regional water
418	supply plan.
419	(g)  The minimum flows and levels established for water
420	resources within the planning region.
421	(h)  Reservations of water adopted by rule pursuant to s.
422	373.223(4).
423	(i)  An analysis, developed in cooperation with the
424	department, of areas or instances in which the variance
425	provisions of s. 378.212(1)(g) or s. 378.404(9) may be used to
426	create water supply development or water resource development
427	projects.
428
429	Within boundaries of a regional water supply authority, those
430	parts of the water supply development component of the regional
431	water supply plan which deal with or affect public utilities and
432	public water supply shall be developed jointly by such authority
433	and the district for those areas served by the authority and its
434	member governments.
435	(5)  By November 15, 1997, and Annually and in conjunction
436	with the reporting requirements of s. 373.536(6)(a)4.
437	thereafter, the department shall submit to the Governor and the
438	Legislature a report on the status of regional water supply
439	planning in each district. The report shall include:
440	(a)  A compilation of the estimated costs of and potential
441	sources of funding for water resource development and water
442	supply development projects, as identified in the water
443	management district regional water supply plans.
444	(b)  A description of each district's progress toward
445	achieving its water resource development objectives, as directed
446	by s. 373.0831(3), including the district's implementation of
447	its 5-year water resource development work program.
448	(c)  An assessment of the overall progress being made to
449	develop water supply that is consistent with regional water
450	supply plans to meet existing and future reasonable-beneficial
451	needs during a 1-in-10-year drought.
452	(6)  Nothing contained in the water supply development
453	component of the district water management plan shall be
454	construed to require local governments, government-owned or
455	privately owned water utilities, self-suppliers, or other water
456	suppliers to select a water supply development option identified
457	in the component merely because it is identified in the plan,
458	nor may the plan be used in the review of permits under part II
459	unless the plan, or an applicable portion thereof, has been
460	adopted by rule. However, this subsection does not prohibit a
461	water management district from employing the data or other
462	information used to establish the plan in reviewing permits
463	under part II, nor shall it not be construed to limit the
464	authority of the department or governing board under part II.
465	Section 8.  Subsection (3) of section 373.0831, Florida
466	Statutes, is amended, and paragraph (c) is added to
467	subsection(4) of said section, to read:
468	373.0831  Water resource development; water supply
469	development.--
470	(3)  The water management districts shall fund and
471	implement water resource development as defined in s. 373.019.
472	The water management districts are encouraged to implement water
473	resource development as expeditiously as possible in areas
474	subject to regional water supply plans. Each governing board
475	shall include in its annual budget the amount needed for the
476	fiscal year to implement water resource development projects, as
477	prioritized in its regional water supply plans.
478	(4)
479	(c)  If a proposed alternative water supply development
480	project is identified in the relevant approved regional water
481	supply plan, the project shall receive:
482	1.  A 20-year consumptive use permit, if it otherwise meets
483	the permit requirements under ss. 373.223 and 373.236 and rules
484	adopted thereunder.
485	2.  Priority funding pursuant to s. 373.1961(2) if the
486	project meets one of the criteria in this subsection.
487	Section 9.  Section 373.116, Florida Statutes, is amended
488	to read:
489	373.116  Procedure for water use and impoundment
490	construction permit applications.--
491	(1)  Applications for water use permits, under part II of
492	this chapter; for permits for construction or alteration of
493	dams, impoundments, reservoirs, and appurtenant works, under
494	part IV of this chapter; and for permits under s. 403.812 shall
495	be filed with the water management district on appropriate forms
496	provided by the governing board.
497	(2)  Upon receipt of an application for a permit of the
498	type referred to in subsection (1), the governing board shall
499	cause a notice thereof to be published in a newspaper having
500	general circulation within the affected area. In addition, the
501	governing board shall send, by regular or electronic mail, a
502	copy of such notice to any person who has filed a written
503	request for notification of any pending applications affecting
504	this particular designated area. Notice of application for the
505	consumptive use of water shall be mailed by regular or
506	electronic mail to the county and appropriate city government
507	from which boundaries the withdrawal is proposed to be made.
508	(3)  All permits issued under this section shall include
509	the following language:
510	This permit does not convey to the permittee any property
511	rights or privileges other than those specified herein, nor
512	relieve the permittee from complying with any applicable local
513	government, state, or federal law, rule, or ordinance.
514	Section 10.  Subsection (2) of section 373.1961, Florida
515	Statutes, is amended to read:
516	373.1961  Water production.--
517	(2)  The Legislature finds that, due to a combination of
518	factors, vastly increased demands have been placed on natural
519	supplies of fresh water, and that, absent increased development
520	of alternative water supplies, such demands may increase in the
521	future. The Legislature also finds that potential exists in the
522	state for the production of significant quantities of
523	alternative water supplies, including reclaimed water, and that
524	water production includes the development of alternative water
525	supplies, including reclaimed water, for appropriate uses. It is
526	the intent of the Legislature that utilities develop reclaimed
527	water systems, where reclaimed water is the most appropriate
528	alternative water supply option, to deliver reclaimed water to
529	as many users as possible through the most cost-effective means,
530	and to construct reclaimed water system infrastructure to their
531	owned or operated properties and facilities where they have
532	reclamation capability. It is also the intent of the Legislature
533	that the water management districts which levy ad valorem taxes
534	for water management purposes should share a percentage of those
535	tax revenues with water providers and users, including local
536	governments, water, wastewater, and reuse utilities, municipal,
537	industrial, and agricultural water users, and other public and
538	private water users, to be used to supplement other funding
539	sources in the development of alternative water supplies. The
540	Legislature finds that public moneys or services provided to
541	private entities for such uses constitute public purposes which
542	are in the public interest. In order to further the development
543	and use of alternative water supply systems, including reclaimed
544	water systems, the Legislature provides the following:
545	(a)  The governing boards of the water management districts
546	where water resource caution areas have been designated shall
547	include in their annual budgets an amount for the development of
548	alternative water supply systems, including reclaimed water
549	systems, pursuant to the requirements of this subsection.
550	Beginning in 1996, Such amounts shall be made available to water
551	providers and users no later than December 31 of each year,
552	through grants, matching grants, revolving loans, or the use of
553	district lands or facilities pursuant to the requirements of
554	this subsection and guidelines established by the districts. In
555	making grants or loans, funding priority shall be given to
556	projects in accordance with s. 373.0831(4). Without diminishing
557	amounts available through other means described in this
558	paragraph, the governing boards are encouraged to consider
559	establishing revolving loan funds to expand the total funds
560	available to accomplish the objectives of this section. A
561	revolving loan fund created pursuant to this paragraph shall be
562	a nonlapsing fund from which the water management district may
563	make loans with interest rates below prevailing market rates to
564	public or private entities for the purposes described in this
565	section. The governing board may adopt resolutions to establish
566	revolving loan funds which shall specify the details of the
567	administration of the fund, the procedures for applying for
568	loans from the fund, the criteria for awarding loans from the
569	fund, the initial capitalization of the fund, and the goals for
570	future capitalization of the fund in subsequent budget years.
571	Revolving loan funds created pursuant to this paragraph shall be
572	used to expand the total sums and sources of cooperative funding
573	available for the development of alternative water supplies. The
574	Legislature does not intend for the creation of revolving loan
575	trust funds to supplant or otherwise reduce existing sources or
576	amounts of funds currently available through other means.
577	(b)  It is the intent of the Legislature that for each
578	reclaimed water utility, or any other utility, which receives
579	funds pursuant to this subsection, the appropriate rate-setting
580	authorities should develop rate structures for all water,
581	wastewater, and reclaimed water and other alternative water
582	supply utilities in the service area of the funded utility,
583	which accomplish the following:
584	1.  Provide meaningful progress toward the development and
585	implementation of alternative water supply systems, including
586	reclaimed water systems;
587	2.  Promote the conservation of fresh water withdrawn from
588	natural systems;
589	3.  Provide for an appropriate distribution of costs for
590	all water, wastewater, and alternative water supply utilities,
591	including reclaimed water utilities, among all of the users of
592	those utilities; and
593	4.  Prohibit rate discrimination within classes of utility
594	users.
595	(c)  Funding assistance provided by the water management
596	districts for a water reuse system project shall include the
597	following grant or loan conditions for that project when the
598	water management district determines such conditions will
599	encourage water use efficiency:
600	1.  Metering of reclaimed water use for the following
601	activities: residential irrigation, agricultural irrigation,
602	industrial uses except for electric utilities as defined in s.
603	366.02(2), golf course irrigation, landscape irrigation,
604	irrigation of other public access areas, commercial and
605	institutional uses such as toilet flushing, and transfers to
606	other reclaimed water utilities.
607	2.  Implementation of reclaimed water rate structures based
608	on actual use of reclaimed water for the types of reuse
609	activities listed in subparagraph 1.
610	3.  Implementation of education programs to inform the
611	public about water issues, water conservation, and the
612	importance and proper use of reclaimed water.
613	4.  Development of location data for key reuse facilities.
614	(d)(c)  In order to be eligible for funding pursuant to
615	this subsection, a project must be consistent with a local
616	government comprehensive plan and the governing body of the
617	local government must require all appropriate new facilities
618	within the project's service area to connect to and use the
619	project's alternative water supplies. The appropriate local
620	government must provide written notification to the appropriate
621	district that the proposed project is consistent with the local
622	government comprehensive plan.
623	(e)(d)  Any and all revenues disbursed pursuant to this
624	subsection shall be applied only for the payment of capital or
625	infrastructure costs for the construction of alternative water
626	supply systems that provide alternative water supplies.
627	(f)(e)  By January 1 of each year, the governing boards
628	shall make available written guidelines for the disbursal of
629	revenues pursuant to this subsection. Such guidelines shall
630	include at minimum:
631	1.  An application process and a deadline for filing
632	applications annually.
633	2.  A process for determining project eligibility pursuant
634	to the requirements of paragraphs (d) (c) and (e) (d).
635	3.  A process and criteria for funding projects pursuant to
636	this subsection that cross district boundaries or that serve
637	more than one district.
638	(g)(f)  The governing board of each water management
639	district shall establish an alternative water supplies grants
640	advisory committee to recommend to the governing board projects
641	for funding pursuant to this subsection. The advisory committee
642	members shall include, but not be limited to, one or more
643	representatives of county, municipal, and investor-owned private
644	utilities, and may include, but not be limited to,
645	representatives of agricultural interests and environmental
646	interests. Each committee member shall represent his or her
647	interest group as a whole and shall not represent any specific
648	entity. The committee shall apply the guidelines and project
649	eligibility criteria established by the governing board in
650	reviewing proposed projects. After one or more hearings to
651	solicit public input on eligible projects, the committee shall
652	rank the eligible projects and shall submit them to the
653	governing board for final funding approval. The advisory
654	committee may submit to the governing board more projects than
655	the available grant money would fund.
656	(h)(g)  All revenues made available annually pursuant to
657	this subsection must be encumbered annually by the governing
658	board if it approves projects sufficient to expend the available
659	revenues. Funds must be disbursed within 36 months after
660	encumbrance.
661	(i)(h)  For purposes of this subsection, alternative water
662	supplies are supplies of water that have been reclaimed after
663	one or more public supply, municipal, industrial, commercial, or
664	agricultural uses, or are supplies of stormwater, or brackish or
665	salt water, that have been treated in accordance with applicable
666	rules and standards sufficient to supply the intended use.
667	(j)(i)  This subsection shall not be subject to the
668	rulemaking requirements of chapter 120.
669	(k)(j)  By January 30 of each year, each water management
670	district shall submit an annual report to the Governor, the
671	President of the Senate, and the Speaker of the House of
672	Representatives which accounts for the disbursal of all budgeted
673	amounts pursuant to this subsection. Such report shall describe
674	all projects funded and shall account separately for moneys
675	provided through grants, matching grants, revolving loans, and
676	the use of district lands or facilities.
677	(l)(k)  The Florida Public Service Commission shall allow
678	entities under its jurisdiction constructing alternative water
679	supply facilities, including but not limited to aquifer storage
680	and recovery wells, to recover the full, prudently incurred cost
681	of such facilities through their rate structure. Every component
682	of an alternative water supply facility constructed by an
683	investor-owned utility shall be recovered in current rates.
684	Section 11.  Subsection (9) is added to section 373.1963,
685	Florida Statutes, to read:
686	373.1963  Assistance to West Coast Regional Water Supply
687	Authority.--
688	(9)  It is the intent of the Legislature that wetland areas
689	in northeastern Hillsborough County which have not yet been
690	adversely impacted by groundwater withdrawals for consumptive
691	use not be subject to groundwater withdrawals by the development
692	of wellfields by the authority. In order to protect the wetlands
693	in this area, the authority is hereby prohibited from seeking
694	permits from the Southwest Florida Water Management District for
695	the consumptive use of water from groundwater in northeastern
696	Hillsborough County north of Knights Griffin Road and east of
697	State Road 39.
698	Section 12.  Subsection (5) is added to section 373.223,
699	Florida Statutes, to read:
700	373.223  Conditions for a permit.--
701	(5)  The Legislature finds that the issuance of consumptive
702	use permits has a direct relation to efficient and effective
703	water resource development. The Legislature further finds that
704	the management of consumptive use permits has a direct relation
705	to efficient and effective water supply development. To help
706	identify the changes necessary to better utilize these permits,
707	the Legislature directs that the Department of Environmental
708	Protection and each water management district submit
709	recommendations to the appropriate substantive committees of
710	each house of the Legislature by December 1, 2004. The
711	recommendations shall identify alternative methods of extending
712	the use of existing water resources, including, but not limited
713	to, the potential rights of existing permitholders to share
714	water allocated under a consumptive use permit. The department
715	and the districts are encouraged to use public hearings to
716	gather information and shall include information provided by
717	basin boards and regional water supply authorities.
718	Section 13.  Section 373.2234, Florida Statutes, is created
719	to read:
720	373.2234  Preferred water supply sources.--The governing
721	board of the district is authorized to adopt rules identifying
722	preferred water supply sources for which there is sufficient
723	data to establish that the source can be used to provide a
724	substantial new water supply to meet existing and reasonably
725	anticipated water needs in a water supply planning region
726	identified pursuant to s. 373.0361(1) while sustaining the water
727	resources and related natural systems. Such rules shall, at a
728	minimum, contain a description of the source and an assessment
729	of the water the source is projected to produce. If a
730	consumptive use permit applicant proposes to use such a source
731	consistent with the assessment, the proposed use shall be
732	subject to the provisions of s. 373.223(1), but such proposed
733	use shall be a factor deemed to be consistent with the public
734	interest pursuant to s. 373.223(1)(c). A consumptive use permit
735	issued approving the use of such a source shall be for at least
736	20 years and may be subject to the provisions of s. 373.226(3).
737	However, nothing in this section shall be construed to provide
738	that the use of nonpreferred sources must receive a permit
739	duration of less than 20 years or that such nonpreferred sources
740	are not consistent with the public interest.
741	Section 14.  Paragraph (c) is added to subsection (2) of
742	section 373.250, Florida Statutes, to read:
743	373.250  Reuse of reclaimed water.--
744	(2)
745	(c)  A water management district may require the use of
746	reclaimed water in lieu of surface water or groundwater when the
747	use of uncommitted reclaimed water is environmentally,
748	economically, and technically feasible. However, while
749	recognizing that the state?s surface water and groundwater are
750	public resources, nothing in this paragraph shall be construed
751	to give a water management district the authority to require a
752	provider of reclaimed water to redirect reclaimed water from one
753	user to another or to provide uncommitted water to a specific
754	user if such water is anticipated to be used by the provider, or
755	a different user selected by the provider, within a reasonable
756	amount of time.
757	Section 15.  Paragraph (a) of subsection (6) of section
758	373.536, Florida Statutes, is amended to read:
759	373.536  District budget and hearing thereon.--
760	(6)  FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
761	WATER RESOURCE DEVELOPMENT WORK PROGRAM.--
762	(a)  Each district must, by the date specified for each
763	item, furnish copies of the following documents to the Governor,
764	the President of the Senate, the Speaker of the House of
765	Representatives, the chairs of all legislative committees and
766	subcommittees having substantive or fiscal jurisdiction over the
767	districts, as determined by the President of the Senate or the
768	Speaker of the House of Representatives as applicable, the
769	secretary of the department, and the governing board of each
770	county in which the district has jurisdiction or derives any
771	funds for the operations of the district:
772	1.  The adopted budget, to be furnished within 10 days
773	after its adoption.
774	2.  A financial audit of its accounts and records, to be
775	furnished within 10 days after its acceptance by the governing
776	board. The audit must be conducted in accordance with the
777	provisions of s. 11.45 and the rules adopted thereunder. In
778	addition to the entities named above, the district must provide
779	a copy of the audit to the Auditor General within 10 days after
780	its acceptance by the governing board.
781	3.  A 5-year capital improvements plan, to be furnished
782	within 45 days after the adoption of the final budget. The plan
783	must include expected sources of revenue for planned
784	improvements and must be prepared in a manner comparable to the
785	fixed capital outlay format set forth in s. 216.043.
786	4.  A 5-year water resource development work program to be
787	furnished within 45 days after the adoption of the final budget.
788	The program must describe the district's implementation strategy
789	for the water resource development component of each approved
790	regional water supply plan developed or revised under s.
791	373.0361. The work program must address all the elements of the
792	water resource development component in the district's approved
793	regional water supply plans and must identify which projects in
794	the work program will provide water, explain how each water
795	resource development project will produce additional water
796	available for consumptive uses, estimate the quantity of water
797	to be produced by each project, and provide an assessment of the
798	contribution of the district?s regional water supply plans in
799	providing sufficient water to meet the water supply needs of
800	existing and future reasonable-beneficial uses for a 1-in-10-
801	year drought event. Within 45 days after its submittal, the
802	department shall review the proposed work program and submit its
803	findings, questions, and comments to the district. The review
804	must include a written evaluation of the program's consistency
805	with the furtherance of the district's approved regional water
806	supply plans, and the adequacy of proposed expenditures. As part
807	of the review, the department shall give interested parties the
808	opportunity to provide written comments on each district's
809	proposed work program. Within 60 days after receipt of the
810	department's evaluation, the governing board shall state in
811	writing to the department which changes recommended in the
812	evaluation it will incorporate into its work program or specify
813	the reasons for not incorporating the changes. The department
814	shall include the district's responses in a final evaluation
815	report and shall submit a copy of the report to the Governor,
816	the President of the Senate, and the Speaker of the House of
817	Representatives.
818	(b)  If any entity listed in paragraph (a) provides written
819	comments to the district regarding any document furnished under
820	this subsection, the district must respond to the comments in
821	writing and furnish copies of the comments and written responses
822	to the other entities.
823	Section 16.  Landscape irrigation design.--
824	(1)  The Legislature finds that multiple areas throughout
825	the state have been identified by water management districts as
826	water resource caution areas, which indicates that in the near
827	future water demand in those areas will exceed the current
828	available water supply and that conservation is one of the
829	mechanisms by which future water demand will be met.
830	(2)  The Legislature finds that landscape irrigation
831	comprises a significant portion of water use and that the
832	current typical landscape irrigation system and xeriscape
833	designs offer significant potential water conservation benefits.
834	(3)  It is the intent of the Legislature to improve
835	landscape irrigation water use efficiency by ensuring landscape
836	irrigation systems meet or exceed minimum design criteria.
837	(4)  The water management districts shall develop and adopt
838	by rule landscape irrigation and xeriscape design standards for
839	new construction that incorporate a landscape irrigation system.
840	The standards shall be based on the irrigation code defined in
841	the Florida Building Code, Plumber?s Volume, Appendix F. Such
842	design standards should promote the effective and efficient use
843	of irrigation water and include a consideration of local
844	demographic, hydrologic, and other considerations as they apply
845	to landscape irrigation water use. When adopting an ordinance or
846	regulation, local governments shall use these approved
847	irrigation design standards.
848	(5)  The water management districts shall work with the
849	Florida Chapter of the American Society of Landscape Architects,
850	the Florida Irrigation Society, the Florida Nurserymen and
851	Growers Association, the Department of Agriculture and Consumer
852	Services, the Institute of Food and Agricultural Sciences, the
853	Department of Environmental Protection, the Florida League of
854	Cities, and the Florida Association of Counties to develop
855	scientifically based model guidelines for urban, commercial, and
856	residential landscape irrigation, including drip irrigation, for
857	plants, trees, sod, and other landscaping. Local governments
858	shall use the scientific information when developing landscape
859	irrigation ordinances or guidelines. Every 3 years, the agencies
860	and entities specified in this subsection shall review the model
861	guidelines to determine whether new research findings require a
862	change or modification of the guidelines.
863	Section 17.  Subsections (1) and (6) of section 403.064,
864	Florida Statutes, are amended, and subsection (16) is added to
865	said section, to read:
866	403.064  Reuse of reclaimed water.--
867	(1)  The encouragement and promotion of water conservation,
868	and reuse of reclaimed water, as defined by the department, are
869	state objectives and are considered to be in the public
870	interest. The Legislature finds that the reuse of reclaimed
871	water is a critical component of meeting the state's existing
872	and future water supply needs while sustaining natural systems.
873	The Legislature further finds that for those wastewater
874	treatment plants permitted and operated under an approved reuse
875	program by the department, the reclaimed water shall be
876	considered environmentally acceptable and not a threat to public
877	health and safety. The Legislature encourages the development of
878	incentive-based programs for reuse implementation.
879	(6)  A reuse feasibility study prepared under subsection(2)
880	satisfies a water management district requirement to conduct a
881	reuse feasibility study imposed on a local government or utility
882	that has responsibility for wastewater management. The data
883	included in the study and the study?s conclusions shall be given
884	significant consideration by the applicant and the appropriate
885	water management district in an analysis of the economic,
886	environmental, and technical feasibility of providing reclaimed
887	water for reuse under part II of chapter 373, and shall be
888	presumed relevant to the determination of feasibility. A water
889	management district shall not require a separate study when a
890	reuse feasibility study has been completed under subsection (2).
891	(16)  Utilities implementing reuse projects are encouraged,
892	except in the case of use by electric utilities as defined in s.
893	366.02(2), to meter use of reclaimed water by all end users and
894	to charge for the use of reclaimed water based on the actual
895	volume used when such metering and charges can be shown to
896	encourage water conservation. Metering and the use of volume-
897	based rates are effective water management tools for the
898	following reuse activities: residential irrigation, agricultural
899	irrigation, industrial uses, golf course irrigation, landscape
900	irrigation, irrigation of other public access areas, commercial
901	and institutional uses such as toilet flushing, and transfers to
902	other reclaimed water utilities. Beginning with the submittal
903	due on January 1, 2004, each domestic wastewater utility that
904	provides reclaimed water for the reuse activities listed in this
905	section shall include a summary of its metering and rate
906	structure as part of its annual reuse report to the department.
907	Section 18.  Paragraph (b) of subsection (3) of section
908	403.1835, Florida Statutes, is amended, and subsection (12) is
909	added to said section, to read:
910	403.1835  Water pollution control financial assistance.--
911	(3)  The department may provide financial assistance
912	through any program authorized under s. 603 of the Federal Water
913	Pollution Control Act (Clean Water Act), Pub. L. No. 92-500, as
914	amended, including, but not limited to, making grants and loans,
915	providing loan guarantees, purchasing loan insurance or other
916	credit enhancements, and buying or refinancing local debt. This
917	financial assistance must be administered in accordance with
918	this section and applicable federal authorities. The department
919	shall administer all programs operated from funds secured
920	through the activities of the Florida Water Pollution Control
921	Financing Corporation under s. 403.1837, to fulfill the purposes
922	of this section.
923	(b)  The department may make or request the corporation to
924	make loans, grants, and deposits to other entities eligible to
925	participate in the financial assistance programs authorized
926	under the Federal Water Pollution Control Act, or as a result of
927	other federal action, which entities may pledge any revenue
928	available to them to repay any funds borrowed. Notwithstanding
929	s. 17.57, the department may make deposits to financial
930	institutions that earn less than the prevailing rate for United
931	States Treasury securities with corresponding maturities for the
932	purpose of enabling such financial institutions to make below-
933	market interest rate loans to entities qualified to receive
934	loans under this section and the rules of the department.
935	(12)(a)  It is the intent of the Legislature that for each
936	reclaimed water utility or any other utility that receives funds
937	pursuant to this subsection, the appropriate rate-setting
938	authorities should develop rate structures for all water,
939	wastewater, and reclaimed water and other alternative water
940	supply utilities in the service area of the funded utility which
941	accomplish the following:
942	1.  Provide meaningful progress toward the development and
943	implementation of alternative water supply systems, including
944	reclaimed water systems.
945	2.  Promote the conservation of fresh water withdrawn from
946	natural systems.
947	3.  Provide for an appropriate distribution of costs for
948	all water, wastewater, and alternative water supply utilities,
949	including reclaimed water utilities, among all of the users of
950	those utilities.
951	(b)  Funding assistance provided for a water reuse system
952	project shall include the following loan conditions for that
953	project where such conditions will encourage water use
954	efficiency:
955	1.  Metering of reclaimed water use for the following
956	activities: residential irrigation, agricultural irrigation,
957	industrial uses except for electric utilities as defined in s.
958	366.02(2), golf course irrigation, landscape irrigation,
959	irrigation of other public access areas, and commercial uses.
960	2.  Implementation of reclaimed water rate structures based
961	on actual use of reclaimed water for the reuse types listed in
962	subparagraph 1.
963	3.  Implementation of education programs to inform the
964	public about water issues, water conservation, and the
965	importance and proper use of reclaimed water.
966	Section 19.  The Legislature finds that, within the area
967	identified in the Lower East Coast Regional Water Supply Plan
968	approved by the South Florida Water Management District pursuant
969	to s. 373.0361, Florida Statutes, the groundwater levels can
970	benefit from augmentation. The Legislature finds that the direct
971	or indirect discharge of reclaimed water into canals and the
972	aquifer system for transport and subsequent reuse may provide an
973	environmentally acceptable means to augment water supplies and
974	enhance natural systems; however, the Legislature also
975	recognizes that there are water quality and water quantity
976	issues that must be better understood and resolved. In addition,
977	there are cost savings possible by collocating enclosed conduits
978	for conveyance of water for reuse in this area within canal
979	rights-of-way that should be investigated. Toward that end, the
980	Department of Environmental Protection, in consultation with the
981	Department of Health, the South Florida Water Management
982	District, Southeast Florida utilities, affected local
983	governments, including local governments with principal
984	responsibility for the operation and maintenance of a water
985	control system capable of conveying reclaimed wastewater for
986	reuse, representatives of the environmental and engineering
987	communities, public health professionals, and individuals having
988	expertise in water quality, shall conduct a study to investigate
989	the feasibility of discharging reclaimed wastewater into canals
990	and the aquifer system as an environmentally acceptable means of
991	augmenting groundwater supplies, enhancing natural systems, and
992	conveying reuse water within enclosed conduits within the canal
993	right-of-way. The study shall include an assessment of the water
994	quality, water supply, public health, technical, and legal
995	implications related to the canal discharge and collocation
996	concepts. The department shall issue a preliminary written
997	report containing draft findings and recommendations for public
998	comment by November 1, 2004. The department shall provide a
999	written report on the results of its study to the Governor and
1000	the relevant substantive committees of the House of
1001	Representatives and the Senate by January 31, 2005. Nothing in
1002	this section shall be used to alter the purpose of the
1003	Comprehensive Everglades Restoration Plan or the implementation
1004	of the Water Resources Development Act of 2000.
1005	Section 20.  If any provision of this act or the
1006	application thereof to any person or circumstance is held
1007	invalid, the invalidity does not affect other provisions or
1008	applications of this act which can be given effect without the
1009	invalid provision or application, and to this end the provisions
1010	of this act are declared severable.
1011	Section 21.  This act shall take effect upon becoming a law
1012	and shall apply to all contracts pending on that date.

CODING: Words stricken are deletions; words underlined are additions.