Florida Senate - 2017 SB 1018 By Senator Grimsley 26-00417B-17 20171018__ 1 A bill to be entitled 2 An act relating to contaminated site cleanup; amending 3 s. 376.30713, F.S.; revising legislative findings; 4 providing an exception to a requirement that an 5 applicant for advanced cleanup demonstrate an ability 6 to pay cost share; requiring that the Department of 7 Environmental Protection determine whether specified 8 requirements are acceptable under certain 9 circumstances; providing that the application for the 10 cleanup of individual redevelopment sites is not 11 subject to certain application period limitations and 12 cost-share provisions; specifying the application 13 requirements for such sites; conforming provisions to 14 changes made by the act; increasing the amount per 15 year the department may use for advanced cleanup work; 16 specifying expenditure limitations; amending s. 17 376.3078, F.S.; authorizing the department to initiate 18 site assessment and remediation activities under 19 certain circumstances; providing a statement of public 20 interest; authorizing site assessments in advance of 21 site priority ranking under certain circumstances; 22 specifying criteria for sites to be eligible for such 23 assessments; specifying what must be demonstrated 24 through such assessments; specifying criteria for the 25 assignment of assessment tasks; specifying funding 26 limitations; specifying the prioritization of 27 requests; amending s. 376.86, F.S.; requiring that 28 certain funds not pledged as loan guarantees or loan 29 loss reserves be made available for certain voluntary 30 tax credit authorizations; providing an effective 31 date. 32 33 Be It Enacted by the Legislature of the State of Florida: 34 35 Section 1. Paragraphs (a) and (c) of subsection (1) and 36 subsections (2) and (4) of section 376.30713, Florida Statutes, 37 are amended to read: 38 376.30713 Advanced cleanup.— 39 (1) In addition to the legislative findings provided in s. 40 376.3071, the Legislature finds and declares: 41 (a) That the inability to conduct site rehabilitation in 42 advance of a site’s priority ranking pursuant to s. 43 376.3071(5)(a) may substantially impede or prohibit property 44 redevelopment, property transactions, or the proper completion 45 of public works projects. 46 (c) It is in the public interest and of substantial 47 economic benefit to the state to provide an opportunity for site 48 rehabilitation to be conducted on a limited basis at 49 contaminated sites, in advance of the site’s priority ranking, 50 to encourage redevelopment and facilitate property transactions 51 or public works projects. 52 (2) The department may approve an application for advanced 53 cleanup at eligible sites, notwithstanding the site’s priority 54 ranking established pursuant to s. 376.3071(5)(a), pursuant to 55 this section. Only the facility owner or operator or the person 56 otherwise responsible for site rehabilitation qualifies as an 57 applicant under this section. 58 (a) Advanced cleanup applications may be submitted between 59 May 1 and June 30 and between November 1 and December 31 of each 60 fiscal year. Applications submitted between May 1 and June 30 61 shall be for the fiscal year beginning July 1. An application 62 must consist of: 63 1. A commitment to pay 25 percent or more of the total 64 cleanup cost deemed recoverable under this section along with 65 proof of the ability to pay the cost share or a demonstration 66 that the applicant is in compliance with sub-sub-subparagraphs 67 c.(I) and (II). The department shall determine whether the cost 68 savings or compliance demonstration is acceptable. Such 69 determination is not subject to chapter 120. 70 a. Applications for the aggregate cleanup of five or more 71 sites may be submitted in one of two formats to meet the cost 72 share requirement: 73 (I) For an aggregate application proposing that the 74 department enter into a performance-based contract, the 75 applicant may use a commitment to pay, a demonstrated cost 76 savings to the department, or both to meet the requirement. 77 (II) For an aggregate application relying on a demonstrated 78 cost savings to the department, the applicant shall, in 79 conjunction with the proposed agency term contractor, establish 80 and provide in the application the percentage of cost savings in 81 the aggregate that is being provided to the department for 82 cleanup of the sites under the application compared to the cost 83 of cleanup of those same sites using the current rates provided 84 to the department by the proposed agency term contractor. 85 b. Applications for the cleanup of individual sites may be 86 submitted in one of two formats to meet the cost-share 87 requirement: 88 (I) For an individual application proposing that the 89 department enter into a performance-based contract, the 90 applicant may use a commitment to pay, a demonstrated cost 91 savings to the department, or both to meet the requirement. 92 (II) For an individual application relying on a 93 demonstrated cost savings to the department, the applicant 94 shall, in conjunction with the proposed agency term contractor, 95 establish and provide in the application a 25-percent cost 96 savings to the department for cleanup of the site under the 97 application compared to the cost of cleanup of the same site 98 using the current rates provided to the department by the 99 proposed agency term contractor. 100 2. A nonrefundable review fee of $250 to cover the 101 administrative costs associated with the department’s review of 102 the application. 103 3. A limited contamination assessment report. 104 4. A proposed course of action. 105 5. A department site access agreement, or similar 106 agreements approved by the department that do not violate state 107 law, entered into with the property owner or owners, as 108 applicable, and evidence of authorization from such owner or 109 owners for petroleum site rehabilitation program tasks 110 consistent with the proposed course of action where the 111 applicant is not the property owner for any of the sites 112 contained in the application. 113 114 The limited contamination assessment report must be sufficient 115 to support the proposed course of action and to estimate the 116 cost of the proposed course of action. Costs incurred related to 117 conducting the limited contamination assessment report are not 118 refundable from the Inland Protection Trust Fund. Site 119 eligibility under this subsection or any other provision of this 120 section is not an entitlement to advanced cleanup or continued 121 restoration funding. The applicant shall certify to the 122 department that the applicant has the prerequisite authority to 123 enter into an advanced cleanup contract with the department. The 124 certification must be submitted with the application. 125 c. Applications for the cleanup of individual redevelopment 126 sites are not subject to the application period limitations 127 specified in paragraph (a) or to the cost-share provisions in 128 paragraph (1)(d) and are accepted on a first-come, first-served 129 basis. Applications for the cleanup of individual redevelopment 130 sites must include: 131 (I) Certification that the applicant has consulted with the 132 local government having jurisdiction over the area about the 133 proposed redevelopment of the site, that the local government is 134 in agreement with or approves the proposed redevelopment, and 135 that the proposed redevelopment complies with applicable laws 136 and requirements for such redevelopment. The certification shall 137 be accomplished by referencing or providing a legally recorded 138 or officially approved land use or site plan, a development 139 order or approval, a building permit, or a similar official 140 document issued by the local government which reflects the local 141 government’s approval of the proposed redevelopment of the site 142 or by providing a letter from the local government which 143 describes the proposed redevelopment of the site and expresses 144 the local government’s agreement with or approval of the 145 proposed redevelopment. 146 (II) A demonstrated reasonable assurance that the applicant 147 has sufficient financial resources to implement and complete the 148 redevelopment project. 149 (b) The department shall rank the applications specified in 150 sub-subparagraphs (a)1.a. and b. based on the percentage of 151 cost-sharing commitment proposed by the applicant, with the 152 highest ranking given to the applicant who proposes the highest 153 percentage of cost sharing. If the department receives 154 applications that propose identical cost-sharing commitments and 155 that exceed the funds available to commit to all such proposals 156 during the advanced cleanup application period, the department 157 shall proceed to rerank those applicants. Those applicants 158 submitting identical cost-sharing proposals that exceed funding 159 availability must be so notified by the department and offered 160 the opportunity to raise their individual cost-share 161 commitments, in a period specified in the notice. At the close 162 of the period, the department shall proceed to rerank the 163 applications pursuant to this paragraph. 164 (4) The department may enter into contracts for a total of 165 up to $30$25million of advanced cleanup work in each fiscal 166 year. Up to $5 million of these funds may be designated for 167 cleanup of individual redevelopment sites as referenced in sub 168 subparagraph (2)(a)1.c. 169 (a)However,A facility or an applicant who bundles 170 multiple sites as specified in subparagraph (2)(a)1. may not be 171 approved for more than $5 million of cleanup activity in each 172 fiscal year. 173 (b) A facility or an applicant applying for cleanup of 174 individual redevelopment sites as referenced in sub-subparagraph 175 (2)(a)1.c. may not be approved for more than $1 million of 176 cleanup activity in each fiscal year. 177 (c) A property owner or responsible party may enter into a 178 voluntary cost-share agreement in which the property owner or 179 responsible party commits to bundle multiple sites and lists the 180 facilities that will be included in those future bundles. The 181 facilities listed are not subject to agency term contractor 182 assignment pursuant to department rule. The department reserves 183 the right to terminate or amend the voluntary cost-share 184 agreement for any identified site under the voluntary cost-share 185 agreement if the property owner or responsible party fails to 186 submit an application to bundle any site, not already covered by 187 an advance cleanup contract, under such voluntary cost-share 188 agreement within a subsequent open application period during 189 which it is eligible to participate. For the purposes of this 190 section, the term “facility” includes, but is not limited to, 191 multiple site facilities such as airports, port facilities, and 192 terminal facilities even though such enterprises may be treated 193 as separate facilities for other purposes under this chapter. 194 Section 2. Paragraph (h) of subsection (8) of section 195 376.3078, Florida Statutes, is amended, and subsection (14) is 196 added to that section, to read: 197 376.3078 Drycleaning facility restoration; funds; uses; 198 liability; recovery of expenditures.— 199 (8) SCORING SYSTEM APPLICATION.— 200 (h) Regardless of the score of a site, the department may 201 initiate site assessment and remediation activities, or 202 emergency action, for those sites that, in the judgment of the 203 department, are a threat to human health and safety, or where 204 failure to prevent migration of drycleaning solvents would cause 205 irreversible damage to the environment. 206 (14) ADVANCED SITE ASSESSMENT.—It is in the public 207 interest, and of substantial environmental and economic benefit 208 to the state, to provide an opportunity to conduct site 209 assessment on a limited basis at contaminated sites in advance 210 of the ranking of the sites on the priority list as specified in 211 subsection (8). 212 (a) A real property owner who is eligible for site 213 rehabilitation at a facility that has been determined eligible 214 for the drycleaning solvent cleanup program under this section 215 may request an advanced site assessment, and the department may 216 authorize the performance of a site assessment in advance of the 217 ranking of the site on the priority list as specified in 218 subsection (8), if the following criteria are met: 219 1. The site assessment information would provide new 220 information that would be sufficient for the department to 221 better evaluate the actual risk of the contamination, thereby 222 reducing the risk to public health and the environment; 223 2. The property owner agrees: 224 a. To implement the appropriate institutional controls 225 allowed by department rules adopted pursuant to subsection (4) 226 at the time the property owner requests the advanced site 227 assessment; and 228 b. To implement and maintain, upon completion of the 229 cleanup, the required institutional controls, or a combination 230 of institutional and engineering controls, when the site meets 231 the site rehabilitation criteria for closure with controls in 232 accordance with department rules adopted pursuant to subsection 233 (4); 234 3. Current conditions at the site allow the site assessment 235 to be conducted in a manner that will result in cost savings to 236 the Water Quality Assurance Trust Fund; 237 4. There is sufficient money in the annual Water Quality 238 Assurance Trust Fund appropriation for the drycleaning solvent 239 cleanup program to pay for the site assessment; and 240 5. In accordance with subsection (3), access to the site is 241 provided and the deductible is paid. 242 (b) A site may be assessed out of priority ranking order 243 when, at the department’s discretion, the site assessment will 244 provide a cost savings to the program. 245 (c) An advanced site assessment must incorporate risk-based 246 corrective action principles to achieve protection of human 247 health and safety and the environment in a cost-effective 248 manner, in accordance with subsection (4). The site assessment 249 must also be sufficient to estimate the cost and determine the 250 proposed course of action toward site cleanup. Advanced site 251 assessment activities performed under this subsection shall be 252 designed to affirmatively demonstrate that the site meets one of 253 the following findings based on the following specified 254 criteria: 255 1. Recommend remedial action to mitigate risks that, in the 256 judgment of the department, are a threat to human health or 257 where failure to prevent migration of drycleaning solvents would 258 cause irreversible damage to the environment; 259 2. Recommend additional groundwater monitoring to support 260 natural attenuation monitoring or long-term groundwater 261 monitoring; or 262 3. Recommend “no further action,” with or without 263 institutional controls or institutional and engineering 264 controls, for those sites that meet the “no further action” 265 criteria department rules adopted pursuant to subsection (4). 266 267 If the site does not meet one of the findings specified in 268 subparagraphs 1.-3., the department shall notify the property 269 owner in writing of this decision, and the site shall be 270 returned to its priority ranking order in accordance with its 271 score. 272 (d) Advanced site assessment program tasks shall be 273 assigned by the drycleaning solvent cleanup program. In addition 274 to the provisions in paragraph (a), the assignment of site 275 assessment tasks shall be based on the department’s 276 determination of contractor logistics, geographical 277 considerations, and other criteria that the department 278 determines are necessary to achieve the most cost-effective 279 approach. 280 (e) Available funding for advanced site assessments may not 281 exceed 10 percent of the annual Water Quality Assurance Trust 282 Fund appropriation for the drycleaning solvent cleanup program. 283 (f) The total funds committed to any one site may not 284 exceed $70,000. 285 (g) The department shall prioritize the requests for 286 advanced site assessment, based on the date of receipt and the 287 environmental and economic value to the state, until 10 percent 288 of the annual Water Quality Assurance Trust Fund appropriation, 289 as provided in paragraph (e), has been obligated. 290 Section 3. Subsection (9) is added to section 376.86, 291 Florida Statutes, to read: 292 376.86 Brownfield Areas Loan Guarantee Program.— 293 (9) Funds not pledged by the council for loan guarantees or 294 as loan loss reserves pursuant to this section must be made 295 available annually for the voluntary cleanup tax credit 296 authorizations provided in ss. 220.1845 and 376.30781. By June 1 297 of each year, the department shall determine the amount of funds 298 that will be made available for the voluntary tax credit 299 authorizations specified in this subsection. 300 Section 4. This act shall take effect July 1, 2017.