Florida Senate - 2015 COMMITTEE AMENDMENT Bill No. CS for SB 918 Ì901608)Î901608 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/08/2015 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Appropriations Subcommittee on General Government (Hays) recommended the following: 1 Senate Amendment to Amendment (322890) (with title 2 amendment) 3 4 Between lines 446 and 447 5 insert: 6 Section 9. Section 373.037, Florida Statutes, is created to 7 read: 8 373.037 Pilot program for alternative water supply 9 development in restricted allocation areas.— 10 (1) As used in this section, the term: 11 (a) “Central Florida Water Initiative Area” means all of 12 Orange, Osceola, Polk, and Seminole Counties, and southern Lake 13 County, as designated by the Central Florida Water Initiative 14 Guiding Document of January 30, 2015. 15 (b) “Lower East Coast Regional Water Supply Planning Area” 16 means the areas withdrawing surface and groundwater from Water 17 Conservation Areas 1, 2A, 2B, 3A, and 3B, Grassy Waters 18 Preserve/Water Catchment Area, Pal Mar, J.W. Corbett Wildlife 19 Management Area, Loxahatchee Slough, Loxahatchee River, 20 Riverbend Park, Dupuis Reserve, Jonathan Dickinson State Park, 21 Kitching Creek, Moonshine Creek, Cypress Creek, Hobe Grove 22 Ditch, the Holey Land and Rotenberger Wildlife Management Areas, 23 and the freshwater portions of the Everglades National Park, as 24 designated by the South Florida Water Management District. 25 (c) “Restricted allocation area” means an area within a 26 water supply planning region of the Southwest Florida Water 27 Management District, the South Florida Water Management 28 District, or the St. Johns River Water Management District where 29 the governing board of the water management district has 30 determined that existing sources of water are not adequate to 31 supply water for all existing and future reasonable-beneficial 32 uses and to sustain the water resources and related natural 33 systems for the planning period pursuant to ss. 373.036 and 34 373.709 and where the governing board of the water management 35 district has applied allocation restrictions with regard to the 36 use of specific sources of water. For the purposes of this 37 section, the term includes the Central Florida Water Initiative 38 Area, the Lower East Coast Regional Water Supply Planning Area, 39 the Southern Water Use Caution Area, and the Upper East Coast 40 Regional Water Supply Planning Area. 41 (d) “Southern Water Use Caution Area” means all of Desoto, 42 Hardee, Manatee, and Sarasota Counties and parts of Charlotte, 43 Highlands, Hillsborough, and Polk Counties, as designated by the 44 Southwest Florida Water Management District. 45 (e) “Upper East Coast Regional Water Supply Planning Area” 46 means the areas withdrawing surface and groundwater from the 47 Central and Southern Florida canals or the Floridan Aquifer, as 48 designated by the South Florida Water Management District. 49 (2) The Legislature finds that: 50 (a) Local governments, regional water supply authorities, 51 and government-owned and privately owned water utilities face 52 significant challenges in securing funds for implementing large 53 scale alternative water supply projects in certain restricted 54 allocation areas due to a variety of factors, such as the 55 magnitude of the water resource challenges, the large number of 56 water users, the difficulty of developing multijurisdictional 57 solutions across district, county, and municipal boundaries, and 58 the expense of developing large-scale alternative water supply 59 projects identified in the regional water supply plans pursuant 60 to s. 373.709. 61 (b) These challenges have resulted in some cases in failure 62 to achieve minimum flows and minimum water levels, to mitigate 63 and avoid harm to the water resource and related natural 64 systems, to provide adequate water supply for all existing and 65 projected reasonable-beneficial uses, and to sustain the water 66 resources and related natural systems within certain restricted 67 allocation areas. 68 (c) These factors make it necessary for the Southwest 69 Florida Water Management District, the South Florida Water 70 Management District, and the St. Johns River Water Management 71 District to each take the lead in developing and implementing 72 one alternative water supply project within a restricted 73 allocation area as a pilot alternative water supply development 74 project. 75 (d) The traditional role of local governments, regional 76 water supply authorities, and government-owned and privately 77 owned water utilities will be maintained by requiring the water 78 management districts to turn over ownership and control of a 79 pilot project to the project participants if they can secure the 80 funds to implement the pilot project and resolve any governance 81 issues over the development, implementation, and operation of 82 the pilot project. 83 (e) The development and implementation of one alternative 84 water supply project each by the Southwest Florida Water 85 Management District, the South Florida Water Management 86 District, and the St. Johns River Water Management District 87 within a restricted allocation area as a pilot project is for 88 the benefit of the public health, safety, and welfare and is in 89 the public interest. The pilot projects must provide water 90 supply and environmental benefits. Consideration shall be given 91 to projects that provide reductions in damaging discharges to 92 tide or are part of a recovery or prevention strategy for 93 minimum flows and minimum water levels. 94 (3) The Southwest Florida Water Management District, the 95 South Florida Water Management District, and the St. Johns River 96 Water Management District shall each designate and implement an 97 existing alternative water supply project, identified in its 98 regional water supply plan, as its one pilot project or amend 99 its regional water supply plan to add a new alternative water 100 supply project as its one pilot project. The pilot project 101 designation shall be made no later than July 1, 2016, and is not 102 subject to the rulemaking requirements of chapter 120 or subject 103 to legal challenge pursuant to ss. 120.569 and 120.57. Once 104 designated, the pilot project shall be considered a use 105 resulting in an enhancement of the water resources of the area 106 and entitled to a preference over other uses in the event of 107 competing applications pursuant to s. 373.036(5). A water 108 management district may designate an alternative water supply 109 project located within another water management district if the 110 project is located in a restricted allocation area designated by 111 the other water management district and a substantial quantity 112 of water provided by the alternative water supply project will 113 be used within the designating water management district’s 114 boundaries. 115 (4) In addition to their other powers and duties under this 116 chapter, the governing boards of the Southwest Florida Water 117 Management District, the South Florida Water Management 118 District, and the St. Johns River Water Management District have 119 the following powers and are subject to the following 120 restrictions in implementing their respective pilot projects 121 pursuant to this section: 122 (a) May establish, design, construct, operate, and maintain 123 water production, treatment and transmission, or other related 124 facilities for the purpose of supplying water to counties, 125 municipalities, special districts, publicly owned and privately 126 owned water utilities, multijurisdictional water supply 127 entities, other large water users, or regional water supply 128 authorities. 129 (b) May not engage in local water supply distribution. 130 (c) May supply water at a cost not to exceed expenses 131 directly related to the planning, design, development, 132 implementation, operation, and maintenance of the pilot project. 133 The cost of such water shall be established by the governing 134 board only after a public hearing at which pilot project 135 customers have an opportunity to be heard concerning the 136 proposed cost. 137 (d) Must provide credit toward the pro rata cost of the 138 water to be supplied from the pilot project to a customer equal 139 to any expenses incurred by the customer toward the 140 implementation of the pilot project before the water management 141 district’s designation and implementation of the pilot project. 142 (e) In addition to the power to issue revenue bonds 143 pursuant to s. 373.584, may issue revenue bonds for the purpose 144 of paying the costs and expenses incurred in carrying out the 145 purposes of this section or refunding obligations of the water 146 management district issued pursuant to this section. All 147 provisions of s. 373.584 relating to the issuance of revenue 148 bonds which are not inconsistent with this section apply to the 149 issuance of revenue bonds pursuant to this section. The water 150 management districts may also issue bond anticipation notes in 151 accordance with s. 373.584. 152 (f) May join with one or more other water management 153 districts, counties, municipalities, special districts, publicly 154 owned or privately owned water utilities, multijurisdictional 155 water supply entities, regional water supply authorities, self 156 suppliers, or other entities for the purpose of carrying out 157 their powers, and may contract with any such other entities to 158 finance or otherwise implement acquisitions, construction, and 159 operation and maintenance, if such contracts are consistent with 160 the public interest and based upon independent cost estimates, 161 including comparisons with other alternative water supply 162 projects. The contracts may provide for contributions to be made 163 by each party to the contract for the division and apportionment 164 of resulting costs, including capital, operations and 165 maintenance, benefits, services, and products. The contracts may 166 contain other covenants and agreements necessary and appropriate 167 to accomplish their purposes. 168 (5) The water management districts may provide up to 50 169 percent of funding assistance for the pilot project. If the 170 pilot project selected by a water management district is the 171 subject of a cooperative funding agreement, the water management 172 district may not reduce the level of funding assistance 173 previously committed. 174 (6) If the pilot project customers form a 175 multijurisdictional water supply entity to implement and develop 176 the pilot project selected by a water management district on or 177 before July 1, 2017, and take substantive steps to develop and 178 implement the project, such as entering into water supply 179 contracts, issuing revenue bonds or bond anticipation notes to 180 finance the project, or awarding construction contracts to 181 construct the project in whole or in part, the water management 182 district is prohibited from proceeding with implementation and 183 development of the selected pilot project. The water management 184 district may designate a new pilot project within 1 year after 185 the creation of the multijurisdictional entity and the 186 completion of at least one substantive step by the 187 multijurisdictional entity to implement the project. 188 (7) If the pilot project customers form a 189 multijurisdictional water supply entity to take over 190 construction, operation, maintenance, and control of the pilot 191 project at any time during the life of the pilot project, the 192 water management district must transfer ownership and control of 193 the pilot project to the pilot project customers upon repayment 194 of any revenue bonds or other obligations issued by the water 195 management district to develop and implement the pilot project 196 and any outstanding expenses incurred by the water management 197 district in constructing, operating, and maintaining the pilot 198 project. Pilot project customers are not responsible for 199 repayment of any cooperative funding provided by a water 200 management district for the pilot project. In such an event, the 201 water management district may develop and implement another 202 pilot project within a restricted allocation area. 203 (8) No later than 3 years following designation of the 204 pilot project pursuant to subsection (3), the Southwest Florida 205 Water Management District, the South Florida Water Management 206 District, and the St. Johns River Water Management District 207 shall each submit a report to the Governor, the President of the 208 Senate, and the Speaker of the House of Representatives on the 209 effectiveness of the pilot project, including the following 210 information: 211 (a) A description of the alternative water supply project 212 selected as a pilot project by the respective water management 213 districts, including the quantity of water the project has 214 produced or is expected to produce and the consumptive users who 215 are expected to use the water produced by the pilot project to 216 meet their existing and projected reasonable-beneficial need. 217 (b) Progress made in developing and implementing the pilot 218 project in comparison to development and implementation of other 219 alternative water supply projects in the restricted allocation 220 area. 221 (c) The capital and operation costs to be expended by the 222 water management district in implementing the pilot project in 223 comparison to other alternative water supply projects being 224 developed and implemented in the restricted allocation area. 225 (d) The source of funds used or to be used by the water 226 management district in developing and implementing the pilot 227 project. 228 (e) The unit cost of water produced from the pilot project 229 in comparison to the unit cost of water from other alternative 230 water supply projects being developed in the restricted 231 allocation area. 232 (f) The benefits to the water resources and natural systems 233 from implementation of the pilot project. 234 (g) A recommendation as to whether the traditional role of 235 water management districts regarding the development and 236 implementation of alternative water supply projects, as 237 specified in ss. 373.705 and 373.707, should be revised and, if 238 so, identification of the statutory changes necessary to expand 239 the scope of the pilot program. 240 241 ================= T I T L E A M E N D M E N T ================ 242 And the title is amended as follows: 243 Delete line 3853 244 and insert: 245 water quality or water quantity; creating s. 373.037, 246 F.S.; defining terms; providing legislative findings; 247 requiring certain water management districts to 248 designate and implement certain pilot projects; 249 providing powers and limitations for the governing 250 boards of such water management districts; providing 251 funding for certain pilot projects; requiring the 252 districts to submit a report to the Governor and the 253 Legislature on the effectiveness of the pilot program; 254 amending s. 373.042,