Florida Senate - 2012 CS for CS for SB 1178 By the Committees on Community Affairs; and Environmental Preservation and Conservation; and Senator Hays 578-02961B-12 20121178c2 1 A bill to be entitled 2 An act relating to water supply; amending s. 373.236, 3 F.S.; specifying conditions of issuance; requiring 4 that certain permits approved for the development of 5 alternative water supplies by certain entities be 6 granted for at least 30 years; requiring that such 7 permits be extended under specified conditions; 8 providing for a reduction in permitted water 9 quantities during compliance reviews under certain 10 circumstances; excluding from application of the act a 11 permit for nonbrackish groundwater or nonalternative 12 water supplies; providing an option for the duration 13 of an alternative water supply permit to a county, 14 special district, regional water supply authority, 15 multijurisdictional water supply entity, or publicly 16 or privately owned utility; creating the Study 17 Committee on Investor-Owned Water and Wastewater 18 Utility Systems; providing for membership and terms of 19 service; prohibiting compensation of the members; 20 providing for reimbursement of the members for certain 21 expenses; providing for removal or suspension of 22 members by the appointing authority; requiring the 23 Public Service Commission to provide staff, 24 information, assistance, and facilities that are 25 deemed necessary for the committee to perform its 26 duties; providing for funding from the Florida Public 27 Service Regulatory Trust Fund; providing duties for 28 the committee; providing for public meetings; 29 requiring the committee to report to the Governor and 30 Legislature its findings and make recommendations for 31 legislative changes; providing for future termination 32 of the committee; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Subsection (5) of section 373.236, Florida 37 Statutes, is amended to read: 38 373.236 Duration of permits; compliance reports.— 39 (5)(a) Permits approved for the development of alternative 40 water supplies shall be granted for a term of at least 20 years 41 if there is sufficient data to provide reasonable assurance that 42 the conditions for permit issuance will be met for the duration 43 of the permit. However, if the permittee issues bonds for the 44 construction of the project, upon request of the permittee 45 beforeprior tothe expiration of the permit, thethatpermit 46 shall be extended for such additional time as is required for 47 the retirement of bonds, not including any refunding or 48 refinancing of such bonds, ifprovided thatthe governing board 49 determines that the use will continue to meet the conditions for 50 the issuance of the permit. Such a permit is subject to 51 compliance reports under subsection (4). 52 (b)1. Permits approved on or after July 1, 2012, for the 53 development of alternative water supplies shall be granted for a 54 term of at least 30 years if there is sufficient data to provide 55 reasonable assurance that the conditions for permit issuance 56 will be met for the duration of the permit. If, within 7 years 57 after a permit is granted, the permittee issues bonds to finance 58 the project, completes construction of the project, and requests 59 an extension of the permit duration, the permit shall be 60 extended to expire upon the retirement of such bonds or 30 years 61 after the date construction of the project is complete, 62 whichever occurs later. However, a permit’s duration may not be 63 extended by more than 7 years beyond the permit’s original 64 expiration date. A 7-year permit extension, as described in this 65 subparagraph, shall be applicable to any 30-year permit for the 66 development of alternative water supplies granted between June 67 1, 2011, and July 1, 2012. 68 2. Permits issued under this paragraph are subject to 69 compliance reports under subsection (4). However, if the 70 permittee demonstrates that bonds issued to finance the project 71 are outstanding, the quantity of alternative water allocated in 72 the permit may not be reduced during a compliance report review 73 unless a reduction is needed to address unanticipated harm to 74 water resources or to existing legal uses present when the 75 permit was issued. A reduction required by an applicable water 76 shortage order shall apply to permits issued under this 77 paragraph. 78 3. Permits issued under this paragraph may not authorize 79 the use of nonbrackish groundwater supplies or nonalternative 80 water supplies. 81 (c) Entities that wish to develop alternative water 82 supplies may apply for a permit under paragraph (a) or paragraph 83 (b). 84 Section 2. Study Committee on Investor-Owned Water and 85 Wastewater Utility Systems.— 86 (1) There is created a Study Committee on Investor-Owned 87 Water and Wastewater Utility Systems, which shall be composed of 88 17 members designated and appointed as follows: 89 (a) Two Senators appointed by the President of the Senate, 90 one of whom shall be appointed as chair by the President of the 91 Senate. 92 (b) Two Representatives appointed by the Speaker of the 93 House of Representatives. 94 (c) The Secretary of Environmental Protection or his or her 95 designee, who shall be a nonvoting member of the committee. 96 (d) The chair of the Public Service Commission or his or 97 her designee, who shall be a nonvoting member of the committee. 98 (e) A representative of a water management district 99 appointed by the Governor. 100 (f) A representative of a water or wastewater system owned 101 or operated by a municipal government appointed by the Governor. 102 (g) A representative of a water or wastewater system owned 103 or operated by a county government appointed by the Governor. 104 (h) The chair of a county commission that regulates 105 investor-owned water or wastewater utility systems, who shall be 106 a nonvoting member of the committee. 107 (i) A representative of a county health department 108 appointed by the Governor, who shall be a nonvoting member of 109 the committee. 110 (j) A representative of the Florida Rural Water Association 111 appointed by the Governor. 112 (k) A representative of a small investor-owned water or 113 wastewater utility appointed by the Governor. 114 (l) A representative of a large investor-owned water or 115 wastewater utility appointed by the Governor. 116 (m) The Public Counsel or his or her designee. 117 (n) A customer of a Class C water or wastewater utility 118 appointed by the Governor. 119 (o) A representative of a government authority that was 120 created pursuant to chapter 367, Florida Statutes, appointed by 121 the Governor. 122 (2) The members shall serve until the work of the committee 123 is complete and the committee is terminated, except that if a 124 member no longer serves in the position required for 125 appointment, the member shall be replaced by the individual who 126 serves in such position. 127 (3) Members of the committee shall serve without 128 compensation, but are entitled to reimbursement for all 129 reasonable and necessary expenses, including travel expenses, in 130 the performance of their duties as provided in s. 112.061, 131 Florida Statutes. 132 (4) The appointing authority may remove or suspend a member 133 appointed by it for cause, including, but not limited to, 134 failure to attend two or more meetings of the committee. 135 (5) The Public Service Commission shall provide the staff, 136 information, assistance, and facilities as are deemed necessary 137 for the committee to carry out its duties under this section. 138 Funding for the committee shall be paid from the Florida Public 139 Service Regulatory Trust Fund. 140 (6) The committee shall identify issues of concern of 141 investor-owned water and wastewater utility systems, 142 particularly small systems, and their customers and research 143 possible solutions. In addition, the committee shall consider: 144 (a) The ability of a small investor-owned water and 145 wastewater utility to achieve economies of scale when purchasing 146 equipment, commodities, or services. 147 (b) The availability of low-interest loans to a small, 148 privately owned water or wastewater utility. 149 (c) Any tax incentives or exemptions, temporary or 150 permanent, which are available to a small water or wastewater 151 utility. 152 (d) The impact on customer rates if a utility purchases an 153 existing water or wastewater utility system. 154 (e) The impact on customer rates of a utility providing 155 service through the use of a reseller. 156 (f) Other issues that the committee identifies during its 157 investigation. 158 (7) The committee shall meet at the time and location as 159 the chair determines, except that the committee shall meet a 160 minimum of four times. At least two meetings must be held in an 161 area that is centrally located to utility customers who have 162 recently been affected by a significant increase in water or 163 wastewater utility rates. The public shall be given the 164 opportunity to speak at the meeting. 165 (8) By December 31, 2012, the committee shall prepare and 166 submit to the Governor, the President of the Senate, and the 167 Speaker of the House of Representatives a report detailing its 168 findings pursuant to subsection (6) and making specific 169 legislative recommendations. 170 (9) This section expires and the committee terminates June 171 30, 2013. 172 Section 3. This act shall take effect July 1, 2012.