Florida Senate - 2017 PROPOSED COMMITTEE SUBSTITUTE
Bill No. CS for SB 1018
Ì546818IÎ546818
576-03822-17
Proposed Committee Substitute by the Committee on Appropriations
(Appropriations Subcommittee on the Environment and Natural
Resources)
1 A bill to be entitled
2 An act relating to contaminated site cleanup; amending
3 s. 376.3071, F.S.; providing an exception to prompt
4 payment requirements to subcontractors and suppliers;
5 amending s. 376.30713, F.S.; revising legislative
6 findings; specifying that applicants for advanced
7 cleanup of certain individual sites are not subject to
8 application period limitations and need not pay a
9 certain cost-sharing commitment; requiring
10 applications by such applicants to be accepted on a
11 first-come, first-served basis; providing that such
12 applications are not subject to certain ranking
13 provisions; specifying application requirements;
14 providing construction; increasing the amount per year
15 that the Department of Environmental Protection may
16 use for advanced cleanup work; specifying expenditure
17 limitations; revising duties of property owners and
18 responsible parties with respect to voluntary cost
19 share agreements; amending s. 376.3078, F.S.;
20 providing a statement of public interest; authorizing
21 site assessments in advance of site priority ranking
22 under certain circumstances; specifying criteria for
23 sites to be eligible for such assessments; specifying
24 what must be demonstrated through such assessments;
25 specifying criteria for the assignment of assessment
26 tasks; specifying funding limitations; specifying the
27 prioritization of requests; amending s. 220.1845,
28 F.S.; increasing the total amount of an authorization
29 for tax credits; amending s. 376.30781, F.S.;
30 increasing the total amount of tax credits the
31 department is responsible for allocating; providing an
32 effective date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Paragraph (h) of subsection (6) of section
37 376.3071, Florida Statutes, is amended to read:
38 376.3071 Inland Protection Trust Fund; creation; purposes;
39 funding.—
40 (6) CONTRACTING AND CONTRACTOR SELECTION REQUIREMENTS.—
41 (h) The contractor, or the person to whom which the
42 contractor has assigned its right to payment pursuant to
43 paragraph (e), shall make prompt payment to subcontractors and
44 suppliers for their costs associated with an approved contract
45 pursuant to s. 287.0585, except that the contractor, or the
46 person to whom the contractor has assigned its right to payment
47 pursuant to paragraph (e), may remit payments to subcontractors
48 and suppliers within 30 working days after the contractor’s
49 receipt of payment by the department before the penalties
50 required by s. 287.0585(1) are applicable.
51 Section 2. Paragraphs (a) and (c) of subsection (1) and
52 subsections (2) and (4) of section 376.30713, Florida Statutes,
53 are amended to read:
54 376.30713 Advanced cleanup.—
55 (1) In addition to the legislative findings provided in s.
56 376.3071, the Legislature finds and declares:
57 (a) That the inability to conduct site rehabilitation in
58 advance of a site’s priority ranking pursuant to s.
59 376.3071(5)(a) may substantially impede or prohibit property
60 redevelopment, property transactions, or the proper completion
61 of public works projects.
62 (c) It is in the public interest and of substantial
63 economic benefit to the state to provide an opportunity for site
64 rehabilitation to be conducted on a limited basis at
65 contaminated sites, in advance of the site’s priority ranking,
66 to encourage redevelopment and facilitate property transactions
67 or public works projects.
68 (2) The department may approve an application for advanced
69 cleanup at eligible sites, including applications submitted
70 pursuant to paragraph (c), notwithstanding the site’s priority
71 ranking established pursuant to s. 376.3071(5)(a), pursuant to
72 this section. Only the facility owner or operator or the person
73 otherwise responsible for site rehabilitation qualifies as an
74 applicant under this section.
75 (a) Advanced cleanup applications may be submitted between
76 May 1 and June 30 and between November 1 and December 31 of each
77 fiscal year. Applications submitted between May 1 and June 30
78 shall be for the fiscal year beginning July 1. An application
79 must consist of:
80 1. A commitment to pay 25 percent or more of the total
81 cleanup cost deemed recoverable under this section along with
82 proof of the ability to pay the cost share. The department shall
83 determine whether the cost savings demonstration is acceptable.
84 Such determination is not subject to chapter 120.
85 a. Applications for the aggregate cleanup of five or more
86 sites may be submitted in one of two formats to meet the cost
87 share requirement:
88 (I) For an aggregate 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 aggregate application relying on a demonstrated
93 cost savings to the department, the applicant shall, in
94 conjunction with the proposed agency term contractor, establish
95 and provide in the application the percentage of cost savings in
96 the aggregate that is being provided to the department for
97 cleanup of the sites under the application compared to the cost
98 of cleanup of those same sites using the current rates provided
99 to the department by the proposed agency term contractor.
100 b. Applications for the cleanup of individual sites may be
101 submitted in one of two formats to meet the cost-share
102 requirement:
103 (I) For an individual application proposing that the
104 department enter into a performance-based contract, the
105 applicant may use a commitment to pay, a demonstrated cost
106 savings to the department, or both to meet the requirement.
107 (II) For an individual application relying on a
108 demonstrated cost savings to the department, the applicant
109 shall, in conjunction with the proposed agency term contractor,
110 establish and provide in the application a 25-percent cost
111 savings to the department for cleanup of the site under the
112 application compared to the cost of cleanup of the same site
113 using the current rates provided to the department by the
114 proposed agency term contractor.
115 2. A nonrefundable review fee of $250 to cover the
116 administrative costs associated with the department’s review of
117 the application.
118 3. A limited contamination assessment report.
119 4. A proposed course of action.
120 5. A department site access agreement, or similar
121 agreements approved by the department that do not violate state
122 law, entered into with the property owner or owners, as
123 applicable, and evidence of authorization from such owner or
124 owners for petroleum site rehabilitation program tasks
125 consistent with the proposed course of action where the
126 applicant is not the property owner for any of the sites
127 contained in the application.
128
129 The limited contamination assessment report must be sufficient
130 to support the proposed course of action and to estimate the
131 cost of the proposed course of action. Costs incurred related to
132 conducting the limited contamination assessment report are not
133 refundable from the Inland Protection Trust Fund. Site
134 eligibility under this subsection or any other provision of this
135 section is not an entitlement to advanced cleanup or continued
136 restoration funding. The applicant shall certify to the
137 department that the applicant has the prerequisite authority to
138 enter into an advanced cleanup contract with the department. The
139 certification must be submitted with the application.
140 (b) The department shall rank the applications based on the
141 percentage of cost-sharing commitment proposed by the applicant,
142 with the highest ranking given to the applicant who proposes the
143 highest percentage of cost sharing. If the department receives
144 applications that propose identical cost-sharing commitments and
145 that exceed the funds available to commit to all such proposals
146 during the advanced cleanup application period, the department
147 shall proceed to rerank those applicants. Those applicants
148 submitting identical cost-sharing proposals that exceed funding
149 availability must be so notified by the department and offered
150 the opportunity to raise their individual cost-share
151 commitments, in a period specified in the notice. At the close
152 of the period, the department shall proceed to rerank the
153 applications pursuant to this paragraph.
154 (c) Applications for the advanced cleanup of individual
155 sites scheduled for redevelopment are not subject to the
156 application period limitations or the requirement to pay 25
157 percent of the total cleanup cost specified in paragraph (a) or
158 to the cost-sharing commitment specified in paragraph (1)(d).
159 Applications must be accepted on a first-come, first-served
160 basis and are not subject to the ranking provisions of paragraph
161 (b). Applications for the advanced cleanup of individual sites
162 scheduled for redevelopment must include:
163 1. A nonrefundable review fee of $250 to cover the
164 administrative costs associated with the department’s review of
165 the application.
166 2. A limited contamination assessment report. The report
167 must be sufficient to support the proposed course of action and
168 to estimate the cost of the proposed course of action. Costs
169 incurred related to conducting and preparing the report are not
170 refundable from the Inland Protection Trust Fund.
171 3. A proposed course of action for cleanup of the site.
172 4. If the applicant is not the property owner for any of
173 the sites contained in the application, a department site access
174 agreement, or a similar agreement approved by the department and
175 not in violation of state law, entered into with the property
176 owner or owners, as applicable, and evidence of authorization
177 from such owner or owners for petroleum site rehabilitation
178 program tasks consistent with the proposed course of action.
179 5. A certification to the department stating that the
180 applicant has the prerequisite authority to enter into an
181 advanced cleanup contract with the department. The advanced
182 cleanup contract must include redevelopment and site
183 rehabilitation milestones.
184 6. Documentation, in the form of a letter from the local
185 government having jurisdiction over the area where the site is
186 located, which states that the local government is in agreement
187 with or approves the proposed redevelopment and that the
188 proposed redevelopment complies with applicable law and
189 requirements for such redevelopment.
190 7. A demonstrated reasonable assurance that the applicant
191 has sufficient financial resources to implement and complete the
192 redevelopment project.
193
194 Site eligibility under this section is not an entitlement to
195 advanced cleanup funding or continued restoration funding.
196 (4) The department may enter into contracts for a total of
197 up to $30 $25 million of advanced cleanup work in each fiscal
198 year. Up to $5 million of these funds may be designated by the
199 department for advanced cleanup of individual sites scheduled
200 for redevelopment under paragraph (2)(c).
201 (a) However, A facility or an applicant who bundles
202 multiple sites as specified in subparagraph (2)(a)1. may not be
203 approved for more than $5 million of cleanup activity in each
204 fiscal year.
205 (b) A facility or an applicant applying for advanced
206 cleanup of individual sites scheduled for redevelopment pursuant
207 to paragraph (2)(c) may not be approved for more than $1 million
208 of cleanup activity in any one fiscal year.
209 (c) A property owner or responsible party may enter into a
210 voluntary cost-share agreement in which the property owner or
211 responsible party commits to bundle multiple sites and lists the
212 facilities that will be included in those future bundles. The
213 facilities listed are not subject to agency term contractor
214 assignment pursuant to department rule. The department must
215 reserve reserves the right to terminate or amend the voluntary
216 cost-share agreement for any identified site under the voluntary
217 cost-share agreement if the property owner or responsible party
218 fails to submit an application to bundle any site, not already
219 covered by an advance cleanup contract, under such voluntary
220 cost-share agreement within three a subsequent open application
221 periods or 18 months, whichever period is shorter, period during
222 which it is eligible to participate. The property owner or
223 responsible party must agree to conduct limited site assessments
224 on the identified sites within 12 months after the execution of
225 the voluntary cost-share agreement. For the purposes of this
226 section, the term “facility” includes, but is not limited to,
227 multiple site facilities such as airports, port facilities, and
228 terminal facilities even though such enterprises may be treated
229 as separate facilities for other purposes under this chapter.
230 Section 3. Subsection (14) is added to section 376.3078,
231 Florida Statutes, to read:
232 376.3078 Drycleaning facility restoration; funds; uses;
233 liability; recovery of expenditures.—
234 (14) ADVANCED SITE ASSESSMENT.—It is in the public
235 interest, and of substantial environmental and economic benefit
236 to the state, to provide an opportunity to conduct site
237 assessment on a limited basis at contaminated sites in advance
238 of the ranking of the sites on the priority list as specified in
239 subsection (8).
240 (a) A real property owner who is eligible for site
241 rehabilitation at a facility that has been determined eligible
242 for the drycleaning solvent cleanup program under this section
243 may request an advanced site assessment, and the department may
244 authorize the performance of a site assessment in advance of the
245 ranking of the site on the priority list as specified in
246 subsection (8), if the following criteria are met:
247 1. The site assessment information would provide new
248 information that would be sufficient for the department to
249 better evaluate the actual risk of the contamination, thereby
250 reducing the risk to public health and the environment;
251 2. The property owner agrees:
252 a. To implement the appropriate institutional controls
253 allowed by department rules adopted pursuant to subsection (4)
254 at the time the property owner requests the advanced site
255 assessment; and
256 b. To implement and maintain, upon completion of the
257 cleanup, the required institutional controls, or a combination
258 of institutional and engineering controls, when the site meets
259 the site rehabilitation criteria for closure with controls in
260 accordance with department rules adopted pursuant to subsection
261 (4);
262 3. Current conditions at the site allow the site assessment
263 to be conducted in a manner that will result in cost savings to
264 the Water Quality Assurance Trust Fund;
265 4. There is sufficient money in the annual Water Quality
266 Assurance Trust Fund appropriation for the drycleaning solvent
267 cleanup program to pay for the site assessment; and
268 5. In accordance with subsection (3), access to the site is
269 provided and the deductible is paid.
270 (b) A site may be assessed out of priority ranking order
271 when, at the department’s discretion, the site assessment will
272 provide a cost savings to the program.
273 (c) An advanced site assessment must incorporate risk-based
274 corrective action principles to achieve protection of human
275 health and safety and the environment in a cost-effective
276 manner, in accordance with subsection (4). The site assessment
277 must also be sufficient to estimate the cost and determine the
278 proposed course of action toward site cleanup. Advanced site
279 assessment activities performed under this subsection shall be
280 designed to affirmatively demonstrate that the site meets one of
281 the following findings based on the following specified
282 criteria:
283 1. Recommend remedial action to mitigate risks that, in the
284 judgment of the department, are a threat to human health or
285 where failure to prevent migration of drycleaning solvents would
286 cause irreversible damage to the environment;
287 2. Recommend additional groundwater monitoring to support
288 natural attenuation monitoring or long-term groundwater
289 monitoring; or
290 3. Recommend “no further action,” with or without
291 institutional controls or institutional and engineering
292 controls, for those sites that meet the “no further action”
293 criteria department rules adopted pursuant to subsection (4).
294
295 If the site does not meet one of the findings specified in
296 subparagraphs 1.-3., the department shall notify the property
297 owner in writing of this decision, and the site shall be
298 returned to its priority ranking order in accordance with its
299 score.
300 (d) Advanced site assessment program tasks shall be
301 assigned by the drycleaning solvent cleanup program. In addition
302 to the provisions in paragraph (a), the assignment of site
303 assessment tasks shall be based on the department’s
304 determination of contractor logistics, geographical
305 considerations, and other criteria that the department
306 determines are necessary to achieve the most cost-effective
307 approach.
308 (e) Available funding for advanced site assessments may not
309 exceed 10 percent of the annual Water Quality Assurance Trust
310 Fund appropriation for the drycleaning solvent cleanup program.
311 (f) The total funds committed to any one site may not
312 exceed $70,000.
313 (g) The department shall prioritize the requests for
314 advanced site assessment, based on the date of receipt and the
315 environmental and economic value to the state, until 10 percent
316 of the annual Water Quality Assurance Trust Fund appropriation,
317 as provided in paragraph (e), has been obligated.
318 Section 4. Paragraph (f) of subsection (2) of section
319 220.1845, Florida Statutes, is amended to read:
320 220.1845 Contaminated site rehabilitation tax credit.—
321 (2) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
322 (f) The total amount of the tax credits which may be
323 granted under this section is $21.6 million in the 2015-2016
324 fiscal year, and $5 million in the 2016-2017 fiscal year, and
325 $10 million annually thereafter.
326 Section 5. Subsection 4 of section 376.30781, Florida
327 Statutes, is amended to read:
328 376.30781 Tax credits for rehabilitation of drycleaning
329 solvent-contaminated sites and brownfield sites in designated
330 brownfield areas; application process; rulemaking authority;
331 revocation authority.—
332 (4) The Department of Environmental Protection is
333 responsible for allocating the tax credits provided for in s.
334 220.1845, which may not exceed a total of $21.6 million in tax
335 credits in the 2015-2016 fiscal year, and $5 million in tax
336 credits in the 2016-2017 fiscal year, and $10 million in tax
337 credits annually thereafter.
338 Section 6. This act shall take effect July 1, 2017.