HB 0855 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. 367.081, F.S.; revising procedure for fixing
5	and changing rates to include the recovery of costs of
6	alternative water supply facilities; amending s. 367.0814,
7	F.S.; revising limit on the amount of revenues received by
8	a utility to qualify for staff assistance in changing
9	rates or charges; creating s. 373.227, F.S.; providing for
10	the development of a water conservation guidance manual by
11	the Department of Environmental Protection; providing for
12	purpose and contents of the manual and requirements with
13	respect thereto; requiring the Department of Environmental
14	Protection to adopt the manual by rule by a specified
15	date; providing program requirements for public water
16	supply utilities that choose to design a comprehensive
17	water conservation program based on the water conservation
18	guidance manual; amending s. 373.0361, F.S.; providing for
19	a public workshop on the development of regional water
20	supply plans; providing requirements with respect to
21	population projections used for determining water supply
22	needs; clarifying provisions with respect to a list of
23	water source options within regional water supply plans;
24	providing additional regional water supply plan
25	components; requiring the Southwest Florida Water
26	Management District and a regional water supply authority
27	within the district to jointly develop the water supply
28	component of the regional water supply plan relating to
29	the use of water by the authority; revising specified
30	reporting requirements of the Department of Environmental
31	Protection; providing that a district water management
32	plan may not be used as criteria for the review of permits
33	for consumptive uses of water unless the plan or
34	applicable portion thereof has been adopted by rule;
35	providing construction; amending s. 373.0831, F.S.;
36	revising the criteria by which water supply development
37	projects may receive priority consideration for funding
38	assistance; providing for permitting and funding of a
39	proposed alternative water supply project identified in
40	the relevant approved regional water supply plan; amending
41	s. 373.1961, F.S.; providing funding priority; providing
42	for the establishment of a revolving loan fund for
43	alternative water supply projects; providing conditions
44	for certain projects to receive funding assistance;
45	amending s. 373.536, F.S.; expanding requirements of the
46	5-year water resource development work program for water
47	management districts; amending s. 373.250, F.S.;
48	authorizing water management districts to require the use
49	of reclaimed water in lieu of surface or groundwater when
50	the use of uncommitted reclaimed water is environmentally,
51	economically, and technically feasible; providing
52	construction with respect to such authority; providing
53	legislative findings and intent with regard to landscape
54	irrigation design; requiring the Florida Building
55	Commission to develop landscape irrigation and xeriscape
56	design standards; amending s. 403.064, F.S.; revising
57	provisions relating to reuse feasibility studies;
58	providing for metering use of reclaimed water and volume-
59	based rates therefor; requiring wastewater utilities to
60	submit plans for metering use and volume-based rate
61	structures to the department; creating s. 403.0645, F.S.;
62	requiring certain uses of reclaimed water at state
63	facilities; requiring state agencies and water management
64	districts to submit to the Secretary of Environmental
65	Protection periodic reports concerning reclaimed water
66	use; amending s. 403.1835, F.S.; authorizing the
67	Department of Environmental Protection to make specified
68	deposits for the purpose of enabling below-market interest
69	rate loans for treatment of polluted water; providing for
70	development of rate structures for alternative water
71	supply systems; providing criteria; providing for a study
72	of the feasibility of discharging reclaimed wastewater
73	into canals and the aquifer system in a specified area as
74	an environmentally acceptable means of accomplishing
75	described objectives; requiring reports; providing
76	applicability; providing an effective date.
77
78	Be It Enacted by the Legislature of the State of Florida:
79
80	Section 1. Subsection (5) of section 159.803, Florida
81	Statutes, is amended to read:
82	159.803 Definitions.--As used in this part, the term:
83	(5) "Priority project" means a solid waste disposal
84	facility or a sewage facility, as such terms are defined in s.
85	142 of the Code, or water facility, as defined in s. 142 of the
86	Code, which is operated by a member-owned, not-for-profit
87	utility,or any project which is to be located in an area which
88	is an enterprise zone designated pursuant to s. 290.0065.
89	Section 2. Subsection (2) of section 367.081, Florida
90	Statutes, is amended to read:
91	367.081 Rates; procedure for fixing and changing.--
92	(2)(a)1. The commission shall, either upon request or upon
93	its own motion, fix rates which are just, reasonable,
94	compensatory, and not unfairly discriminatory. In every such
95	proceeding, the commission shall consider the value and quality
96	of the service and the cost of providing the service, which
97	shall include, but not be limited to, debt interest; the
98	requirements of the utility for working capital; maintenance,
99	depreciation, tax, and operating expenses incurred in the
100	operation of all property used and useful in the public service;
101	and a fair return on the investment of the utility in property
102	used and useful in the public service. Pursuant to s.
103	373.1961(2)(l), the commission shall allow recovery of the full,
104	prudently incurred costs of alternative water supply facilities.
105	However, the commission shall not allow the inclusion of
106	contributions-in-aid-of-construction in the rate base of any
107	utility during a rate proceeding, nor shall the commission
108	impute prospective future contributions-in-aid-of-construction
109	against the utility's investment in property used and useful in
110	the public service; and accumulated depreciation on such
111	contributions-in-aid-of-construction shall not be used to reduce
112	the rate base, nor shall depreciation on such contributed assets
113	be considered a cost of providing utility service.
114	2. For purposes of such proceedings, the commission shall
115	consider utility property, including land acquired or facilities
116	constructed or to be constructed within a reasonable time in the
117	future, not to exceed 24 months after the end of the historic
118	base year used to set final rates unless a longer period is
119	approved by the commission, to be used and useful in the public
120	service, if:
121	a. Such property is needed to serve current customers;
122	b. Such property is needed to serve customers 5 years
123	after the end of the test year used in the commission's final
124	order on a rate request as provided in subsection (6) at a
125	growth rate for equivalent residential connections not to exceed
126	5 percent per year; or
127	c. Such property is needed to serve customers more than 5
128	full years after the end of the test year used in the
129	commission's final order on a rate request as provided in
130	subsection (6) only to the extent that the utility presents
131	clear and convincing evidence to justify such consideration.
132
133	Notwithstanding the provisions of this paragraph, the commission
134	shall approve rates for service which allow a utility to recover
135	from customers the full amount of environmental compliance
136	costs. Such rates may not include charges for allowances for
137	funds prudently invested or similar charges. For purposes of
138	this requirement, the term "environmental compliance costs"
139	includes all reasonable expenses and fair return on any prudent
140	investment incurred by a utility in complying with the
141	requirements or conditions contained in any permitting,
142	enforcement, or similar decisions of the United States
143	Environmental Protection Agency, the Department of Environmental
144	Protection, a water management district, or any other
145	governmental entity with similar regulatory jurisdiction.
146	(b) In establishing initial rates for a utility, the
147	commission may project the financial and operational data as set
148	out in paragraph (a) to a point in time when the utility is
149	expected to be operating at a reasonable level of capacity.
150	Section 3. Subsection (1) of section 367.0814, Florida
151	Statutes, is amended to read:
152	367.0814 Staff assistance in changing rates and charges;
153	interim rates.--
154	(1) The commission may establish rules by which a water or
155	wastewater utility whose gross annual revenues are $200,000
156	$150,000or less may request and obtain staff assistance for the
157	purpose of changing its rates and charges. A utility may request
158	staff assistance by filing an application with the commission.
159	Section 4. Section 373.227, Florida Statutes, is created
160	to read:
161	373.227 Water conservation guidance manual.--
162	(1) The Legislature recognizes that the proper
163	conservation of water is an important means of achieving the
164	economical and efficient utilization of water necessary to
165	constitute a reasonable-beneficial use. The Legislature
166	encourages the development and use of water conservation
167	measures that are effective, flexible, and affordable. In the
168	context of the use of water for public supply provided by a
169	water utility, the Legislature intends for a variety of
170	conservation measures to be available and used to encourage
171	efficient water use. The Legislature finds that the social,
172	economic, and cultural conditions of this state relating to the
173	use of public water supply vary by geographic region, and thus
174	water utilities must have the flexibility to tailor water
175	conservation measures to best suit their individual
176	circumstances. For purposes of this section, the term "public
177	water supply utility" includes both publicly owned and privately
178	owned public water supply utilities.
179	(2) In order to implement the findings in subsection (1),
180	the Department of Environmental Protection shall develop a water
181	conservation guidance manual containing a menu of water
182	conservation measures from which public water supply utilities
183	may select in the development of a comprehensive, goal-based
184	water conservation program tailored for their individual service
185	areas that is effective and does not impose undue costs or
186	burdens on customers. The water conservation guidance manual
187	shall promote statewide consistency in the approach to utility
188	conservation while maintaining appropriate flexibility. The
189	manual may contain measures such as: water conservation audits,
190	informative billing practices to educate customers on their
191	patterns of water use, the costs of water, and ways to conserve
192	water; ordinances requiring low-flow plumbing fixtures and
193	efficient landscape irrigation; rebate programs for the
194	installation of water-saving plumbing or appliances; general
195	water conservation educational programs, including bill inserts;
196	measures to promote the more effective and efficient reuse of
197	reclaimed water; water conservation or drought rate structures
198	that encourage customers to conserve water through appropriate
199	price signals; and programs to apply utility profits generated
200	through conservation and drought rates to additional water
201	conservation programs or water supply development. The manual
202	shall specifically state that it is the responsibility of the
203	appropriate utility to determine the specific rates it will
204	charge its customers and that the role of the department or
205	water management district is confined to the review of those
206	rate structures to determine whether they encourage water
207	conservation. The water conservation guidance manual shall also
208	state that a utility need not adopt a water conservation or
209	drought rate structure if the utility employs other measures
210	that are equally or more effective. The manual shall provide for
211	different levels of complexity and expected levels of effort in
212	conservation programs depending on the size of the utility.
213	However, all utilities will be expected to have at least basic
214	programs in each of the following areas:
215	(a) Individual metering, to the extent feasible as
216	determined by the utility.
217	(b) Water accounting and loss control.
218	(c) Cost-of-service accounting.
219	(d) Information programs on water conservation.
220	(e) Landscaping water efficiency programs.
221	(3) The Department of Environmental Protection shall
222	develop the water conservation guidance manual no later than
223	June 15, 2005. The department shall develop the manual in
224	consultation with interested parties, which, at a minimum, shall
225	include representatives from the water management districts,
226	three utilities that are members of the American Water Works
227	Association, two utilities that are members of the Florida Water
228	Environment Association, a representative of the Florida Chamber
229	of Commerce, representatives of counties and municipalities, and
230	representatives of environmental organizations. By December 15,
231	2005, the department shall adopt the water conservation guidance
232	manual by rule. Once the department adopts the water
233	conservation guidance manual by rule, the water management
234	districts may apply the manual and any revisions thereto in the
235	review of water conservation requirements for obtaining a permit
236	pursuant to part II without the need to adopt the manual
237	pursuant to s. 120.54. Once the water conservation guidance
238	manual is adopted by rule, a public water supply utility may
239	choose to comply with the standard water conservation
240	requirements adopted by the appropriate water management
241	district for obtaining a consumptive use permit from that
242	district or may choose to develop a comprehensive, goal-based
243	water conservation program from the options contained in the
244	manual. If the utility chooses to design a comprehensive water
245	conservation program based on the water conservation guidance
246	manual, the proposed program must include the following:
247	(a) An inventory of water system characteristics and
248	conservation opportunities.
249	(b) Demand forecasts.
250	(c) An explanation of the proposed program.
251	(d) Specific numeric water conservation targets for the
252	utility as a whole and for appropriate customer classes, with a
253	justification of why the numeric targets are appropriate based
254	on that utility's particular customer characteristics and
255	conservation opportunities.
256	(e) A demonstration that the program will promote
257	effective water conservation at least as well as standard water
258	use conservation requirements adopted by the appropriate water
259	management district.
260	(f) A timetable for the utility and the water management
261	district to evaluate progress in meeting the water conservation
262	targets and making needed program modifications.
263	(4) If the utility provides reasonable assurance that the
264	proposed conservation program is consistent with the water
265	conservation guidance manual and contains the elements specified
266	in subsection (3), the water management district must approve
267	the proposed program and the program shall satisfy water
268	conservation requirements imposed as a condition of obtaining a
269	permit under part II. The department, in consultation with the
270	parties specified in subsection (3), may periodically amend or
271	revise the water conservation guidance manual as appropriate to
272	reflect changed circumstances or new technologies or approaches.
273	The findings and provisions in this section do not apply to
274	users of water other than public and private water supply
275	utilities.
276	Section 5. Subsections (1), (2), (5), and (6) of section
277	373.0361, Florida Statutes, are amended to read:
278	373.0361 Regional water supply planning.--
279	(1) By October 1, 1998, the governing board shall initiate
280	water supply planning for each water supply planning region
281	identified in the district water management plan under s.
282	373.036, where it determines that sources of water are not
283	adequate for the planning period to supply water for all
284	existing and projected reasonable-beneficial uses and to sustain
285	the water resources and related natural systems. The planning
286	must be conducted in an open public process, in coordination and
287	cooperation with local governments, regional water supply
288	authorities, government-owned and privately owned water
289	utilities, self-suppliers, and other affected and interested
290	parties. During development but prior to completion of the
291	regional water supply plan, the district must conduct at least
292	one public workshop to discuss the technical data and modeling
293	tools anticipated to be used to support the plan.A
294	determination by the governing board that initiation of a
295	regional water supply plan for a specific planning region is not
296	needed pursuant to this section shall be subject to s. 120.569.
297	The governing board shall reevaluate such a determination at
298	least once every 5 years and shall initiate a regional water
299	supply plan, if needed, pursuant to this subsection.
300	(2) Each regional water supply plan shall be based on at
301	least a 20-year planning period and shall include, but not be
302	limited to:
303	(a) A water supply development component that includes:
304	1. A quantification of the water supply needs for all
305	existing and reasonably projected future uses within the
306	planning horizon. The level-of-certainty planning goal
307	associated with identifying the water supply needs of existing
308	and future reasonable-beneficial uses shall be based upon
309	meeting those needs for a 1-in-10-year drought event. Population
310	projections used for determining public water supply needs must
311	be based upon the best available data. In determining the best
312	available data, the district shall consider the University of
313	Florida's Bureau of Economic and Business Research (BEBR) median
314	population projections and any population projection data and
315	analysis submitted by a local government pursuant to the public
316	workshop described in subsection (1) if the data and analysis
317	support the local government's comprehensive plan. Any
318	adjustment of or deviation from the BEBR projections must be
319	fully described, and the original BEBR data must be presented
320	along with the adjusted data.
321	2. A list of water source options for water supply
322	development, including traditional and alternative source
323	options sources, from which local government, government-owned
324	and privately owned utilities, self-suppliers, and others may
325	choose for water supply development, the total capacity of,
326	which will, in conjunction with water conservation and other
327	demand management measures,exceed the needs identified in
328	subparagraph 1.
329	3. For each option listed in subparagraph 2., the
330	estimated amount of water available for use and the estimated
331	costs of and potential sources of funding for water supply
332	development.
333	4. A list of water supply development projects that meet
334	the criteria in s. 373.0831(4).
335	(b) A water resource development component that includes:
336	1. A listing of those water resource development projects
337	that support water supply development.
338	2. For each water resource development project listed:
339	a. An estimate of the amount of water to become available
340	through the project.
341	b. The timetable for implementing or constructing the
342	project and the estimated costs for implementing, operating, and
343	maintaining the project.
344	c. Sources of funding and funding needs.
345	d. Who will implement the project and how it will be
346	implemented.
347	(c) The recovery and prevention strategy described in s.
348	373.0421(2).
349	(d) A funding strategy for water resource development
350	projects, which shall be reasonable and sufficient to pay the
351	cost of constructing or implementing all of the listed projects.
352	(e) Consideration of how the options addressed in
353	paragraphs (a) and (b) serve the public interest or save costs
354	overall by preventing the loss of natural resources or avoiding
355	greater future expenditures for water resource development or
356	water supply development. However, unless adopted by rule, these
357	considerations do not constitute final agency action.
358	(f) The technical data and information applicable to the
359	planning region which are contained in the district water
360	management plan and are necessary to support the regional water
361	supply plan.
362	(g) The minimum flows and levels established for water
363	resources within the planning region.
364	(h) Reservations of water adopted by rule pursuant to s.
365	373.223(4).
366	(i) An analysis, developed in cooperation with the
367	department, of areas or instances in which the variance
368	provisions of s. 378.212(1)(g) or s. 378.404(9) may be used to
369	create water supply development or water resource development
370	projects.
371
372	Within boundaries of a regional water supply authority in the
373	Southwest Florida Water Management District, the water supply
374	development component of the regional water supply plan relating
375	to the use of water by the authority shall be developed jointly
376	by the authority and the district.
377	(5) By November 15, 1997, and Annually and in conjunction
378	with the reporting requirements of s. 373.536(6)(a)4.
379	thereafter, the department shall submit to the Governor and the
380	Legislature a report on the status of regional water supply
381	planning in each district. The report shall include:
382	(a) A compilation of the estimated costs of and potential
383	sources of funding for water resource development and water
384	supply development projects, as identified in the water
385	management district regional water supply plans.
386	(b) A description of each district's progress toward
387	achieving its water resource development objectives, as directed
388	by s. 373.0831(3), including the district's implementation of
389	its 5-year water resource development work program.
390	(c) An assessment of the overall progress being made to
391	develop water supply that is consistent with regional water
392	supply plans to meet existing and future reasonable-beneficial
393	needs during a 1-in-10-year drought.
394	(6) Nothing contained in the water supply development
395	component of the district water management plan shall be
396	construed to require local governments, government-owned or
397	privately owned water utilities, self-suppliers, or other water
398	suppliers to select a water supply development option identified
399	in the component merely because it is identified in the plan,
400	nor may the plan be used in the review of permits under part II
401	unless the plan, or an applicable portion thereof, has been
402	adopted by rule. However, this subsection does not prohibit a
403	water management district from employing the data or other
404	information used to establish the plan in reviewing permits
405	under part II, nor does it shall not be construed tolimit the
406	authority of the department or governing board under part II.
407	Section 6. Subsection (3) of section 373.0831, Florida
408	Statutes, is amended, and paragraph (c) is added to subsection
409	(4) of said section, to read:
410	373.0831 Water resource development; water supply
411	development.--
412	(3) The water management districts shall fund and
413	implement water resource development as defined in s. 373.019.
414	The water management districts are encouraged to implement water
415	resource development as expeditiously as possible in areas
416	subject to regional water supply plans.Each governing board
417	shall include in its annual budget the amount needed for the
418	fiscal year to implement water resource development projects, as
419	prioritized in its regional water supply plans.
420	(4)
421	(c) If a proposed alternative water supply development
422	project is identified in the relevant approved regional water
423	supply plan, the project shall receive:
424	1. A 20-year consumptive use permit if it otherwise meets
425	the permit requirements under ss. 373.223 and 373.236 and rules
426	adopted thereunder.
427	2. Priority funding pursuant to s. 373.1961(2) if the
428	project meets one of the criteria in this subsection.
429	Section 7. Subsection (2) of section 373.1961, Florida
430	Statutes, is amended to read:
431	373.1961 Water production.--
432	(2) The Legislature finds that, due to a combination of
433	factors, vastly increased demands have been placed on natural
434	supplies of fresh water, and that, absent increased development
435	of alternative water supplies, such demands may increase in the
436	future. The Legislature also finds that potential exists in the
437	state for the production of significant quantities of
438	alternative water supplies, including reclaimed water, and that
439	water production includes the development of alternative water
440	supplies, including reclaimed water, for appropriate uses. It is
441	the intent of the Legislature that utilities develop reclaimed
442	water systems, where reclaimed water is the most appropriate
443	alternative water supply option, to deliver reclaimed water to
444	as many users as possible through the most cost-effective means,
445	and to construct reclaimed water system infrastructure to their
446	owned or operated properties and facilities where they have
447	reclamation capability. It is also the intent of the Legislature
448	that the water management districts which levy ad valorem taxes
449	for water management purposes should share a percentage of those
450	tax revenues with water providers and users, including local
451	governments, water, wastewater, and reuse utilities, municipal,
452	industrial, and agricultural water users, and other public and
453	private water users, to be used to supplement other funding
454	sources in the development of alternative water supplies. The
455	Legislature finds that public moneys or services provided to
456	private entities for such uses constitute public purposes which
457	are in the public interest. In order to further the development
458	and use of alternative water supply systems, including reclaimed
459	water systems, the Legislature provides the following:
460	(a) The governing boards of the water management districts
461	where water resource caution areas have been designated shall
462	include in their annual budgets an amount for the development of
463	alternative water supply systems, including reclaimed water
464	systems, pursuant to the requirements of this subsection.
465	Beginning in 1996, Such amounts shall be made available to water
466	providers and users no later than December 31 of each year,
467	through grants, matching grants, revolving loans, or the use of
468	district lands or facilities pursuant to the requirements of
469	this subsection and guidelines established by the districts. In
470	making grants or loans, funding priority shall be given to
471	projects in accordance with s. 373.0831(4). Without diminishing
472	amounts available through other means described in this
473	paragraph, the governing boards are encouraged to consider
474	establishing revolving loan funds to expand the total funds
475	available to accomplish the objectives of this section. A
476	revolving loan fund created under this paragraph shall be a
477	nonlapsing fund from which the water management district may
478	make loans with interest rates below prevailing market rates to
479	public or private entities for the purposes described in this
480	section. The governing board may adopt resolutions to establish
481	revolving loan funds which shall specify the details of the
482	administration of the fund, the procedures for applying for
483	loans from the fund, the criteria for awarding loans from the
484	fund, the initial capitalization of the fund, and the goals for
485	future capitalization of the fund in subsequent budget years.
486	Revolving loan funds created under this paragraph shall be used
487	to expand the total sums and sources of cooperative funding
488	available for the development of alternative water supplies. The
489	Legislature does not intend for the creation of revolving loan
490	funds to supplant or otherwise reduce existing sources or
491	amounts of funds currently available through other means.
492	(b) It is the intent of the Legislature that for each
493	reclaimed water utility, or any other utility, which receives
494	funds pursuant to this subsection, the appropriate rate-setting
495	authorities should develop rate structures for all water,
496	wastewater, and reclaimed water and other alternative water
497	supply utilities in the service area of the funded utility,
498	which accomplish the following:
499	1. Provide meaningful progress toward the development and
500	implementation of alternative water supply systems, including
501	reclaimed water systems;
502	2. Promote the conservation of fresh water withdrawn from
503	natural systems;
504	3. Provide for an appropriate distribution of costs for
505	all water, wastewater, and alternative water supply utilities,
506	including reclaimed water utilities, among all of the users of
507	those utilities; and
508	4. Prohibit rate discrimination within classes of utility
509	users.
510	(c) Funding assistance provided by the water management
511	districts for a water reuse system project may include the
512	following grant or loan conditions for that project if the water
513	management district determines such conditions will encourage
514	water use efficiency:
515	1. Metering of reclaimed water use for the following
516	activities: residential irrigation, agricultural irrigation,
517	industrial uses except for electric utilities as defined in s.
518	366.02(2), landscape irrigation, irrigation of other public
519	access areas, commercial and institutional uses such as toilet
520	flushing, and transfers to other reclaimed water utilities.
521	2. Implementation of reclaimed water rate structures based
522	on actual use of reclaimed water for the types of reuse
523	activities listed in subparagraph 1.
524	3. Implementation of education programs to inform the
525	public about water issues, water conservation, and the
526	importance and proper use of reclaimed water.
527	4. Development of location data for key reuse facilities.
528	(d)(c)In order to be eligible for funding pursuant to
529	this subsection, a project must be consistent with a local
530	government comprehensive plan and the governing body of the
531	local government must require all appropriate new facilities
532	within the project's service area to connect to and use the
533	project's alternative water supplies. The appropriate local
534	government must provide written notification to the appropriate
535	district that the proposed project is consistent with the local
536	government comprehensive plan.
537	(e)(d)Any and all revenues disbursed pursuant to this
538	subsection shall be applied only for the payment of capital or
539	infrastructure costs for the construction of alternative water
540	supply systems that provide alternative water supplies.
541	(f)(e)By January 1 of each year, the governing boards
542	shall make available written guidelines for the disbursal of
543	revenues pursuant to this subsection. Such guidelines shall
544	include at minimum:
545	1. An application process and a deadline for filing
546	applications annually.
547	2. A process for determining project eligibility pursuant
548	to the requirements of paragraphs (d) (c) and (e) (d).
549	3. A process and criteria for funding projects pursuant to
550	this subsection that cross district boundaries or that serve
551	more than one district.
552	(g)(f)The governing board of each water management
553	district shall establish an alternative water supplies grants
554	advisory committee to recommend to the governing board projects
555	for funding pursuant to this subsection. The advisory committee
556	members shall include, but not be limited to, one or more
557	representatives of county, municipal, and investor-owned private
558	utilities, and may include, but not be limited to,
559	representatives of agricultural interests and environmental
560	interests. Each committee member shall represent his or her
561	interest group as a whole and shall not represent any specific
562	entity. The committee shall apply the guidelines and project
563	eligibility criteria established by the governing board in
564	reviewing proposed projects. After one or more hearings to
565	solicit public input on eligible projects, the committee shall
566	rank the eligible projects and shall submit them to the
567	governing board for final funding approval. The advisory
568	committee may submit to the governing board more projects than
569	the available grant money would fund.
570	(h)(g)All revenues made available annually pursuant to
571	this subsection must be encumbered annually by the governing
572	board if it approves projects sufficient to expend the available
573	revenues. Funds must be disbursed within 36 months after
574	encumbrance.
575	(i)(h)For purposes of this subsection, alternative water
576	supplies are supplies of water that have been reclaimed after
577	one or more public supply, municipal, industrial, commercial, or
578	agricultural uses, or are supplies of stormwater, or brackish or
579	salt water, that have been treated in accordance with applicable
580	rules and standards sufficient to supply the intended use.
581	(j)(i)This subsection shall not be subject to the
582	rulemaking requirements of chapter 120.
583	(k)(j)By January 30 of each year, each water management
584	district shall submit an annual report to the Governor, the
585	President of the Senate, and the Speaker of the House of
586	Representatives which accounts for the disbursal of all budgeted
587	amounts pursuant to this subsection. Such report shall describe
588	all projects funded and shall account separately for moneys
589	provided through grants, matching grants, revolving loans, and
590	the use of district lands or facilities.
591	(l)(k)The Florida Public Service Commission shall allow
592	entities under its jurisdiction constructing alternative water
593	supply facilities, including but not limited to aquifer storage
594	and recovery wells, to recover the full, prudently incurred cost
595	of such facilities through their rate structure. Every component
596	of an alternative water supply facility constructed by an
597	investor-owned utility shall be recovered in current rates.
598	Section 8. Paragraph (a) of subsection (6) of section
599	373.536, Florida Statutes, is amended to read:
600	373.536 District budget and hearing thereon.--
601	(6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
602	WATER RESOURCE DEVELOPMENT WORK PROGRAM.--
603	(a) Each district must, by the date specified for each
604	item, furnish copies of the following documents to the Governor,
605	the President of the Senate, the Speaker of the House of
606	Representatives, the chairs of all legislative committees and
607	subcommittees having substantive or fiscal jurisdiction over the
608	districts, as determined by the President of the Senate or the
609	Speaker of the House of Representatives as applicable, the
610	secretary of the department, and the governing board of each
611	county in which the district has jurisdiction or derives any
612	funds for the operations of the district:
613	1. The adopted budget, to be furnished within 10 days
614	after its adoption.
615	2. A financial audit of its accounts and records, to be
616	furnished within 10 days after its acceptance by the governing
617	board. The audit must be conducted in accordance with the
618	provisions of s. 11.45 and the rules adopted thereunder. In
619	addition to the entities named above, the district must provide
620	a copy of the audit to the Auditor General within 10 days after
621	its acceptance by the governing board.
622	3. A 5-year capital improvements plan, to be furnished
623	within 45 days after the adoption of the final budget. The plan
624	must include expected sources of revenue for planned
625	improvements and must be prepared in a manner comparable to the
626	fixed capital outlay format set forth in s. 216.043.
627	4. A 5-year water resource development work program to be
628	furnished within 45 days after the adoption of the final budget.
629	The program must describe the district's implementation strategy
630	for the water resource development component of each approved
631	regional water supply plan developed or revised under s.
632	373.0361. The work program must address all the elements of the
633	water resource development component in the district's approved
634	regional water supply plans and must identify which projects in
635	the work program will provide water, explain how each water
636	resource development project will produce additional water
637	available for consumptive uses, estimate the quantity of water
638	to be produced by each project, and provide an assessment of the
639	contribution of the district's regional water supply plans in
640	providing sufficient water to meet the water supply needs of
641	existing and future reasonable-beneficial uses for a 1-in-10-
642	year drought event. Within 45 days after its submittal, the
643	department shall review the proposed work program and submit its
644	findings, questions, and comments to the district. The review
645	must include a written evaluation of the program's consistency
646	with the furtherance of the district's approved regional water
647	supply plans, and the adequacy of proposed expenditures. As part
648	of the review, the department shall give interested parties the
649	opportunity to provide written comments on each district's
650	proposed work program. Within 60 days after receipt of the
651	department's evaluation, the governing board shall state in
652	writing to the department which changes recommended in the
653	evaluation it will incorporate into its work program or specify
654	the reasons for not incorporating the changes. The department
655	shall include the district's responses in a final evaluation
656	report and shall submit a copy of the report to the Governor,
657	the President of the Senate, and the Speaker of the House of
658	Representatives.
659	(b) If any entity listed in paragraph (a) provides written
660	comments to the district regarding any document furnished under
661	this subsection, the district must respond to the comments in
662	writing and furnish copies of the comments and written responses
663	to the other entities.
664	Section 9. Paragraph (c) is added to subsection (2) of
665	section 373.250, Florida Statutes, to read:
666	373.250 Reuse of reclaimed water.--
667	(2)
668	(c) A water management district may require the use of
669	reclaimed water in lieu of surface water or groundwater when the
670	use of uncommitted reclaimed water is environmentally,
671	economically, and technically feasible. However, while
672	recognizing that the state's surface water and groundwater are
673	public resources, nothing in this paragraph shall be construed
674	to give a water management district the authority to require a
675	provider of reclaimed water to redirect reclaimed water from one
676	user to another or to provide uncommitted water to a specific
677	user if such water is anticipated to be used by the provider, or
678	a different user selected by the provider, within a reasonable
679	amount of time.
680	Section 10. Landscape irrigation design.--
681	(1) The Legislature finds that multiple areas throughout
682	the state have been identified by water management districts as
683	water resource caution areas, which identification indicates
684	that water demand in those areas will exceed the current
685	available water supply and that conservation is one of the
686	mechanisms by which future water demand will be met.
687	(2) The Legislature finds that landscape irrigation
688	comprises a significant portion of water use and that the
689	current typical landscape irrigation system and xeriscape
690	designs offer significant potential water conservation benefits.
691	(3) It is the intent of the Legislature to improve
692	landscape irrigation water use efficiency by ensuring that
693	landscape irrigation systems meet or exceed minimum design
694	criteria.
695	(4) The Florida Building Commission shall develop and
696	adopt by rule landscape irrigation and xeriscape design
697	standards for new construction that incorporate a landscape
698	irrigation system. The standards shall be based on the
699	irrigation code defined in the Florida Building Code, Plumber's
700	Volume, Appendix F. Such design standards should promote the
701	effective and efficient use of irrigation water and include a
702	consideration of local demographic, hydrologic, and other
703	considerations as they apply to landscape irrigation water use.
704	When adopting an ordinance or regulation, local governments
705	shall use these approved irrigation design standards.
706	(5) The water management districts shall work with the
707	Florida Nurserymen and Growers Association, the Florida Chapter
708	of the American Society of Landscape Architects, the Florida
709	Irrigation Society, the Department of Agriculture and Consumer
710	Services, the Institute of Food and Agricultural Sciences, the
711	Department of Environmental Protection, the Utility Council of
712	the American Water Works Association, the Florida League of
713	Cities, and the Florida Association of Counties to develop
714	scientifically based model guidelines for urban, commercial, and
715	residential landscape irrigation, including drip irrigation, for
716	plants, trees, sod, and other landscaping. Local governments
717	shall use the scientific information when developing landscape
718	irrigation ordinances or guidelines. Every 3 years, the agencies
719	and entities specified in this subsection shall review the model
720	guidelines to determine whether new research findings require a
721	change or modification of the guidelines.
722	Section 11. Subsections (1) and (6) of section 403.064,
723	Florida Statutes, are amended, and subsection (16) is added to
724	said section, to read:
725	403.064 Reuse of reclaimed water.--
726	(1) The encouragement and promotion of water conservation,
727	and reuse of reclaimed water, as defined by the department, are
728	state objectives and are considered to be in the public
729	interest. The Legislature finds that the reuse of reclaimed
730	water is a critical component of meeting the state's existing
731	and future water supply needs while sustaining natural systems.
732	The Legislature further finds that for those wastewater
733	treatment plants permitted and operated under an approved reuse
734	program by the department, the reclaimed water shall be
735	considered environmentally acceptable and not a threat to public
736	health and safety. The Legislature encourages the development of
737	incentive-based programs for reuse implementation.
738	(6) A reuse feasibility study prepared under subsection
739	(2) satisfies a water management district requirement to conduct
740	a reuse feasibility study imposed on a local government or
741	utility that has responsibility for wastewater management. The
742	data included in the study and the study's conclusions shall be
743	given significant consideration by the applicant and the
744	appropriate water management district in an analysis of the
745	economic, environmental, and technical feasibility of providing
746	reclaimed water for reuse under part II of chapter 373 and shall
747	be presumed relevant to the determination of feasibility. A
748	water management district shall not require a separate study
749	when a reuse feasibility study has been completed under
750	subsection (2).
751	(16) Utilities implementing reuse projects are encouraged,
752	except in the case of use by electric utilities as defined in s.
753	366.02(2), to meter use of reclaimed water by all end users and
754	to charge for the use of reclaimed water based on the actual
755	volume used when such metering and charges can be shown to
756	encourage water conservation. Metering and the use of volume-
757	based rates are effective water management tools for the
758	following reuse activities: residential irrigation, agricultural
759	irrigation, industrial uses, golf course irrigation, landscape
760	irrigation, irrigation of other public access areas, commercial
761	and institutional uses such as toilet flushing, and transfers to
762	other reclaimed water utilities. Beginning with the submittal
763	due on January 1, 2005, each domestic wastewater utility that
764	provides reclaimed water for the reuse activities listed in this
765	section shall include a summary of its metering and rate
766	structure as part of its annual reuse report to the department.
767	Section 12. Section 403.0645, Florida Statutes, is created
768	to read:
769	403.0645 Reclaimed water use at state facilities.--
770	(1) The encouragement and promotion of reuse of reclaimed
771	water has been established as a state objective in ss. 373.250
772	and 403.064. Reuse has become an integral part of water and
773	wastewater management in Florida, and Florida is recognized as a
774	national leader in water reuse.
775	(2) The state and various state agencies and water
776	management districts should take a leadership role in using
777	reclaimed water in lieu of other water sources. The use of
778	reclaimed water by state agencies and facilities will conserve
779	potable water and will serve an important public education
780	function.
781	(3) Each state agency and water management district shall
782	use reclaimed water to the greatest extent practicable for
783	landscape irrigation, toilet flushing, aesthetic features such
784	as decorative ponds and fountains, cooling water, and other
785	useful purposes allowed by department rules at state facilities,
786	including, but not limited to, parks, rest areas, visitor
787	welcome centers, buildings, college campuses, and other
788	facilities.
789	(4) Each state agency and water management district shall
790	submit to the Secretary of Environmental Protection by February
791	1 of each year a summary of activities designed to utilize
792	reclaimed water at its facilities along with a summary of the
793	amounts of reclaimed water actually used for beneficial
794	purposes.
795	Section 13. Paragraph (b) of subsection (3) of section
796	403.1835, Florida Statutes, is amended, and subsection (12) is
797	added to said section, to read:
798	403.1835 Water pollution control financial assistance.--
799	(3) The department may provide financial assistance
800	through any program authorized under s. 603 of the Federal Water
801	Pollution Control Act (Clean Water Act), Pub. L. No. 92-500, as
802	amended, including, but not limited to, making grants and loans,
803	providing loan guarantees, purchasing loan insurance or other
804	credit enhancements, and buying or refinancing local debt. This
805	financial assistance must be administered in accordance with
806	this section and applicable federal authorities. The department
807	shall administer all programs operated from funds secured
808	through the activities of the Florida Water Pollution Control
809	Financing Corporation under s. 403.1837, to fulfill the purposes
810	of this section.
811	(b) The department may make or request the corporation to
812	make loans, grants, and deposits to other entities eligible to
813	participate in the financial assistance programs authorized
814	under the Federal Water Pollution Control Act, or as a result of
815	other federal action, which entities may pledge any revenue
816	available to them to repay any funds borrowed. Notwithstanding
817	s. 17.57, the department may make deposits to financial
818	institutions that earn less than the prevailing rate for United
819	States Treasury securities with corresponding maturities for the
820	purpose of enabling such financial institutions to make below-
821	market interest rate loans to entities qualified to receive
822	loans under this section and the rules of the department.
823	(12)(a) It is the intent of the Legislature that for each
824	reclaimed water utility or any other utility that receives funds
825	pursuant to this subsection, the appropriate rate-setting
826	authorities should develop rate structures for all water,
827	wastewater, and reclaimed water and other alternative water
828	supply utilities in the service area of the funded utility which
829	accomplish the following:
830	1. Provide meaningful progress toward the development and
831	implementation of alternative water supply systems, including
832	reclaimed water systems.
833	2. Promote the conservation of fresh water withdrawn from
834	natural systems.
835	3. Provide for an appropriate distribution of costs for
836	all water, wastewater, and alternative water supply utilities,
837	including reclaimed water utilities, among all of the users of
838	those utilities.
839	(b) Funding assistance provided for a water reuse system
840	project shall include the following loan conditions for that
841	project where such conditions will encourage water use
842	efficiency:
843	1. Metering of reclaimed water use for the following
844	activities: residential irrigation, agricultural irrigation,
845	industrial uses except for electric utilities as defined in s.
846	366.02(2), golf course irrigation, landscape irrigation,
847	irrigation of other public access areas, and commercial uses.
848	2. Implementation of reclaimed water rate structures based
849	on actual use of reclaimed water for the reuse types listed in
850	subparagraph 1.
851	3. Implementation of education programs to inform the
852	public about water issues, water conservation, and the
853	importance and proper use of reclaimed water.
854	Section 14. The Legislature finds that, within the area
855	identified in the Lower East Coast Regional Water Supply Plan
856	approved by the South Florida Water Management District pursuant
857	to s. 373.0361, Florida Statutes, the groundwater levels can
858	benefit from augmentation. The Legislature finds that the direct
859	or indirect discharge of reclaimed water into canals and the
860	aquifer system for transport and subsequent reuse may provide an
861	environmentally acceptable means to augment water supplies and
862	enhance natural systems; however, the Legislature also
863	recognizes that there are water quality and water quantity
864	issues that must be better understood and resolved. In addition,
865	there are cost savings possible by collocating enclosed conduits
866	for conveyance of water for reuse in this area within canal
867	rights-of-way that should be investigated. Toward that end, the
868	Department of Environmental Protection, in consultation with the
869	South Florida Water Management District, Southeast Florida
870	utilities, affected local governments, including local
871	governments with principal responsibility for the operation and
872	maintenance of a water control system capable of conveying
873	reclaimed wastewater for reuse, representatives of the
874	environmental and engineering communities, public health
875	professionals, and individuals having expertise in water
876	quality, shall conduct a study to investigate the feasibility of
877	discharging reclaimed wastewater into canals and the aquifer
878	system as an environmentally acceptable means of augmenting
879	groundwater supplies, enhancing natural systems, and conveying
880	reuse water within enclosed conduits within the canal right-of-
881	way. The study shall include an assessment of the water quality,
882	water supply, public health, technical, and legal implications
883	related to the canal discharge and collocation concepts. The
884	department shall issue a preliminary written report containing
885	draft findings and recommendations for public comment by
886	November 1, 2005. The department shall provide a written report
887	on the results of its study to the Governor and the relevant
888	substantive committees of the House of Representatives and the
889	Senate by January 31, 2006. Nothing in this section shall be
890	used to alter the purpose of the Comprehensive Everglades
891	Restoration Plan or the implementation of the Water Resources
892	Development Act of 2000.
893	Section 15. Except as otherwise expressly provided in this
894	act, this act shall take effect upon becoming a law and shall
895	apply to all contracts pending on that date.