Florida Senate - 2012 CS for CS for CS for SB 1178 By the Committees on Budget Subcommittee on General Government Appropriations; Community Affairs; and Environmental Preservation and Conservation; and Senator Hays 601-04288-12 20121178c3 1 A bill to be entitled 2 An act relating to water management; amending s. 3 373.042, F.S.; requiring water management districts to 4 include certain reservations and water bodies in 5 priority lists and schedules; providing for the 6 adoption of certain reservations and minimum flows and 7 levels by the Department of Environmental Protection; 8 requiring water management districts to apply, without 9 adopting by rule, reservations, minimum flows and 10 levels, and recovery and prevention strategies adopted 11 by the department; amending s. 373.046, F.S.; 12 authorizing water management districts to enter into 13 interagency agreements for resource management 14 activities, studies, or projects under specified 15 conditions; requiring that the district providing the 16 funding for an activity, study, or project ensure that 17 some or all of the benefits accrue to the funding 18 district; providing applicability; amending s. 19 373.171, F.S.; exempting cooperative funding programs 20 from certain rulemaking requirements; amending s. 21 373.236, F.S.; specifying conditions for the issuance 22 of permits for the development of alternative water 23 supplies; requiring that certain permits be granted 24 for at least 30 years; requiring that such permits be 25 extended under specified conditions; providing for a 26 reduction in permitted water quantities during 27 compliance reviews under certain circumstances; 28 excluding from application of the act a permit for 29 nonbrackish groundwater or nonalternative water 30 supplies; providing an option for the duration of an 31 alternative water supply permit to a county, special 32 district, regional water supply authority, 33 multijurisdictional water supply entity, or publicly 34 or privately owned utility; amending s. 373.605, F.S.; 35 authorizing water management districts to provide 36 group insurance for employees of other water 37 management districts; removing obsolete provisions; 38 amending s. 373.709, F.S., relating to regional water 39 supply planning; removing a reference to the Southwest 40 Florida Water Management District; requiring a 41 regional water supply authority and the applicable 42 water management district to jointly develop the water 43 supply component of the regional water supply plan; 44 creating the Study Committee on Investor-Owned Water 45 and Wastewater Utility Systems; providing for 46 membership and terms of service; prohibiting 47 compensation of the members; providing for 48 reimbursement of the members for certain expenses; 49 providing for removal or suspension of members by the 50 appointing authority; requiring the Public Service 51 Commission to provide staff, information, assistance, 52 and facilities that are deemed necessary for the 53 committee to perform its duties; providing for funding 54 from the Florida Public Service Regulatory Trust Fund; 55 providing duties of the committee; providing for 56 public meetings; requiring the committee to report its 57 findings to the Governor, the Legislature, and 58 appropriate agencies and make certain recommendations; 59 providing for future termination of the committee; 60 providing an effective date. 61 62 Be It Enacted by the Legislature of the State of Florida: 63 64 Section 1. Present subsections (4) and (5) of section 65 373.042, Florida Statutes, are redesignated as subsections (5) 66 and (6), respectively, a new subsection (4) is added to that 67 section, and subsection (2) of that section is amended, to read: 68 373.042 Minimum flows and levels.— 69 (2) By November 15, 1997, and annually thereafter, each 70 water management district shall submit to the department for 71 review and approval a priority list and schedule for the 72 establishment of minimum flows and levels for surface 73 watercourses, aquifers, and surface waters within the district. 74 The priority list and schedule shallalsoidentify those listed 75 water bodies for which the district will voluntarily undertake 76 independent scientific peer review, any reservations proposed by 77 the district to be established pursuant to s. 373.223(4), and 78 those listed water bodies that have the potential to be affected 79 by withdrawals in an adjacent district for which department 80 adoption of a reservation pursuant to s. 373.223(4) or a minimum 81 flow or level pursuant to subsection (1) may be appropriate. By 82 March 1, 2006, and annually thereafter, each water management 83 district shall include its approved priority list and schedule 84 in the consolidated annual report required by s. 373.036(7). The 85 priority list shall be based upon the importance of the waters 86 to the state or region and the existence of or potential for 87 significant harm to the water resources or ecology of the state 88 or region, and shall include those waters which are experiencing 89 or may reasonably be expected to experience adverse impacts. 90 Each water management district’s priority list and schedule 91 shall include all first magnitude springs, and all second 92 magnitude springs within state or federally owned lands 93 purchased for conservation purposes. The specific schedule for 94 establishment of spring minimum flows and levels shall be 95 commensurate with the existing or potential threat to spring 96 flow from consumptive uses. Springs within the Suwannee River 97 Water Management District, or second magnitude springs in other 98 areas of the state, need not be included on the priority list if 99 the water management district submits a report to the Department 100 of Environmental Protection demonstrating that adverse impacts 101 are not now occurring nor are reasonably expected to occur from 102 consumptive uses during the next 20 years. The priority list and 103 schedule shall not be subject to any proceeding pursuant to 104 chapter 120. Except as provided in subsection (3), the 105 development of a priority list and compliance with the schedule 106 for the establishment of minimum flows and levels pursuant to 107 this subsection shall satisfy the requirements of subsection 108 (1). 109 (4) A water management district shall provide the 110 department with technical information and staff support for the 111 development of a reservation, minimum flow or level, or recovery 112 or prevention strategy to be adopted by rule by the department. 113 A reservation, minimum flow or level, or recovery or prevention 114 strategy adopted by rule by the department shall be applied by 115 the water management districts without adoption of such 116 reservation, minimum flow or level, or recovery or prevention 117 strategy by rule. 118 Section 2. Subsection (7) is added to section 373.046, 119 Florida Statutes, to read: 120 373.046 Interagency agreements.— 121 (7) If the geographic area of a resource management 122 activity, study, or project crosses water management district 123 boundaries, the affected districts may designate a single 124 affected district to conduct all or part of the applicable 125 resource management responsibilities under this chapter, with 126 the exception of those regulatory responsibilities that are 127 subject to subsection (6). If funding assistance is provided to 128 a resource management activity, study, or project, the district 129 providing the funding must ensure that some or all of the 130 benefits accrue to the funding district. This subsection does 131 not impair any interagency agreement in effect on July 1, 2012. 132 Section 3. Subsection (5) is added to section 373.171, 133 Florida Statutes, to read: 134 373.171 Rules.— 135 (5) Cooperative funding programs are not subject to the 136 rulemaking requirements of chapter 120. However, any portion of 137 an approved program which affects the substantial interests of a 138 party is subject to s. 120.569. 139 Section 4. Subsection (5) of section 373.236, Florida 140 Statutes, is amended to read: 141 373.236 Duration of permits; compliance reports.— 142 (5)(a) Permits approved for the development of alternative 143 water supplies shall be granted for a term of at least 20 years 144 if there is sufficient data to provide reasonable assurance that 145 the conditions for permit issuance will be met for the duration 146 of the permit. However, if the permittee issues bonds for the 147 construction of the project, upon request of the permittee 148 beforeprior tothe expiration of the permit, thethatpermit 149 shall be extended for such additional time as is required for 150 the retirement of bonds, not including any refunding or 151 refinancing of such bonds, ifprovided thatthe governing board 152 determines that the use will continue to meet the conditions for 153 the issuance of the permit. Such a permit is subject to 154 compliance reports under subsection (4). 155 (b)1. Permits approved on or after July 1, 2012, for the 156 development of alternative water supplies shall be granted for a 157 term of at least 30 years if there is sufficient data to provide 158 reasonable assurance that the conditions for permit issuance 159 will be met for the duration of the permit. If, within 7 years 160 after a permit is granted, the permittee issues bonds to finance 161 the project, completes construction of the project, and requests 162 an extension of the permit duration, the permit shall be 163 extended to expire upon the retirement of such bonds or 30 years 164 after the date construction of the project is complete, 165 whichever occurs later. However, a permit’s duration may not be 166 extended by more than 7 years beyond the permit’s original 167 expiration date. A 7-year permit extension, as described in this 168 subparagraph, shall be applicable to any 30-year permit for the 169 development of alternative water supplies granted between June 170 1, 2011, and July 1, 2012. 171 2. Permits issued under this paragraph are subject to 172 compliance reports under subsection (4). However, if the 173 permittee demonstrates that bonds issued to finance the project 174 are outstanding, the quantity of alternative water allocated in 175 the permit may not be reduced during a compliance report review 176 unless a reduction is needed to address unanticipated harm to 177 water resources or to existing legal uses present when the 178 permit was issued. A reduction required by an applicable water 179 shortage order shall apply to permits issued under this 180 paragraph. 181 3. Permits issued under this paragraph may not authorize 182 the use of nonbrackish groundwater supplies or nonalternative 183 water supplies. 184 (c) Entities that wish to develop alternative water 185 supplies may apply for a permit under paragraph (a) or paragraph 186 (b). 187 Section 5. Section 373.605, Florida Statutes, is amended to 188 read: 189 373.605 Group insurance for water management districts.— 190 (1) The governing board of aanywater management district 191 mayis hereby authorized and empowered toprovide group 192 insurance for its employees in the same manner and with the same 193 provisions and limitations authorized for other public employees 194 by ss. 112.08, 112.09, 112.10, 112.11, and 112.14. 195 (2) The governing board of a water management district may 196 provide group insurance for its employees and the employees of 197 another water management district in the same manner and with 198 the same provisions and limitations authorized for other public 199 employees by ss. 112.08, 112.09, 112.10, 112.11, and 112.14.Any200and all insurance agreements in effect as of October 1, 1974,201which conform to the provisions of this section are hereby202ratified.203 Section 6. Subsection (3) of section 373.709, Florida 204 Statutes, is amended to read: 205 373.709 Regional water supply planning.— 206 (3) The water supply development component of a regional 207 water supply plan which deals with or affects public utilities 208 and public water supply for those areas served by a regional 209 water supply authority and its member governmentswithin the210boundary of the Southwest Florida Water Management District211 shall be developed jointly by the authority and the applicable 212 water management district. In areas not served by regional water 213 supply authorities, or other multijurisdictional water supply 214 entities, and where opportunities exist to meet water supply 215 needs more efficiently through multijurisdictional projects 216 identified pursuant to paragraph (2)(a), water management 217 districts are directed to assist in developing 218 multijurisdictional approaches to water supply project 219 development jointly with affected water utilities, special 220 districts, and local governments. 221 Section 7. Study Committee on Investor-Owned Water and 222 Wastewater Utility Systems.— 223 (1) There is created a Study Committee on Investor-Owned 224 Water and Wastewater Utility Systems, which shall be composed of 225 18 residents of the state designated and appointed as follows: 226 (a) The chair of the Public Service Commission or a 227 commissioner designated by the chair, who shall serve as chair 228 of the committee and shall be a nonvoting member of the 229 committee. 230 (b) The Secretary of Environmental Protection or his or her 231 designee, who shall be a nonvoting member of the committee. 232 (c) The Public Counsel or his or her designee, who shall be 233 a nonvoting member of the committee. 234 (d) One member of the Senate appointed by the President of 235 the Senate. 236 (e) One member of the House of Representatives appointed by 237 the Speaker of the House of Representatives. 238 (f) Two representatives of Class A investor-owned water or 239 wastewater utilities appointed by the Governor. 240 (g) One representative of a Class B investor-owned water or 241 wastewater utility appointed by the Governor. 242 (h) One representative of a Class C investor-owned water or 243 wastewater utility appointed by the Governor. 244 (i) One customer of a Class A investor-owned water or 245 wastewater utility appointed by the Governor. 246 (j) One customer of a Class B or Class C investor-owned 247 water or wastewater utility appointed by the Governor. 248 (k) One representative of a water management district 249 appointed by the Governor. 250 (l) One representative of the Florida Section of the 251 American Water Works Association appointed by the Governor. 252 (m) One representative of the Florida Rural Water 253 Association appointed by the Governor. 254 (n) One representative of a water or wastewater system 255 owned or operated by a municipal or county government appointed 256 by the Governor. 257 (o) One representative of a governmental authority that is 258 created pursuant to chapter 163, Florida Statutes, appointed by 259 the Governor. 260 (p) The chair of a county commission that regulates 261 investor-owned water or wastewater utility systems appointed by 262 the Governor. 263 (q) One representative of a county health department 264 appointed by the Governor. 265 (2) The members shall serve until the work of the committee 266 is complete and the committee is terminated, except that if a 267 member no longer serves in the position required for 268 appointment, the member shall be replaced by the individual who 269 serves in such position. 270 (3) Members of the committee shall serve without 271 compensation, but are entitled to reimbursement for all 272 reasonable and necessary expenses, including travel expenses, in 273 the performance of their duties as provided in s. 112.061, 274 Florida Statutes. 275 (4) An appointing authority may remove or suspend a member 276 appointed by it for cause, including, but not limited to, 277 failure to attend two or more meetings of the committee. 278 (5) The Public Service Commission shall provide the staff, 279 information, assistance, and facilities as are deemed necessary 280 for the committee to carry out its duties under this section. 281 Funding for the committee shall be paid from the Florida Public 282 Service Regulatory Trust Fund. 283 (6) The committee shall identify issues of concern of 284 investor-owned water and wastewater utility systems, 285 particularly small systems, and their customers and research 286 possible solutions. In addition, the committee shall consider: 287 (a) The ability of a small investor-owned water or 288 wastewater utility to achieve economies of scale when purchasing 289 equipment, commodities, or services. 290 (b) The availability of low interest loans to a small, 291 privately owned water or wastewater utility. 292 (c) Any tax incentives or exemptions, temporary or 293 permanent, which are available to a small water or wastewater 294 utility. 295 (d) The impact on customer rates if a utility purchases an 296 existing water or wastewater utility system. 297 (e) The impact on customer rates of a utility providing 298 service through the use of a reseller. 299 (f) Other issues that the committee identifies during its 300 investigation. 301 (7) The committee shall meet at the time and location as 302 the chair determines, except that the committee shall meet a 303 minimum of four times. At least two meetings must be held in an 304 area that is centrally located to utility customers who have 305 recently been affected by a significant increase in water or 306 wastewater utility rates. The public shall be given the 307 opportunity to speak at the meetings. 308 (8) By February 15, 2013, the committee shall prepare and 309 submit to the Governor, the President of the Senate, and the 310 Speaker of the House of Representatives a report detailing its 311 findings pursuant to subsection (6) and making specific 312 legislative recommendations, including proposed legislation 313 intended to implement its recommendations. If the committee, in 314 its report, finds that an issue may effectively be addressed 315 through agency rulemaking, the committee shall submit to the 316 appropriate agencies its report and recommendations, including 317 proposed rules. 318 (9) This section expires and the committee terminates June 319 30, 2013. 320 Section 8. This act shall take effect July 1, 2012.