Florida Senate - 2022 SB 1426 By Senator Burgess 20-00660A-22 20221426__ 1 A bill to be entitled 2 An act relating to water quality enhancement areas; 3 creating s. 373.4134, F.S.; providing legislative 4 findings and intent; defining terms; providing for 5 water quality enhancement areas, enhancement service 6 areas, and enhancement credits; providing requirements 7 for water quality enhancement area permits, 8 enhancement service areas, and enhancement credits; 9 directing the Department of Environmental Protection 10 and water management districts to authorize the sale 11 and use of enhancement credits to offset certain 12 adverse water quality impacts and to meet certain 13 water quality requirements; providing construction; 14 directing the department to maintain enhancement 15 credit ledgers and adopt rules; providing an effective 16 date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Section 373.4134, Florida Statutes, is created 21 to read: 22 373.4134 Water quality enhancement areas.— 23 (1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds 24 that: 25 (a) Water quality will be improved and adverse water 26 quality impacts of activities regulated under this part may be 27 offset by the construction, operation, maintenance, and long 28 term management of water quality enhancement areas that provide 29 offsite compensatory treatment. 30 (b) An expansion of existing authority for regional 31 treatment to include offsite compensatory treatment in water 32 quality enhancement areas to make credits available for purchase 33 to offset impacts regulated under this part, is needed. 34 (c) The construction, operation, maintenance, and long-term 35 management of water quality enhancement areas pursuant to this 36 section will improve the certainty and long-term viability of 37 water quality treatment systems. 38 (d) Water quality enhancement areas are a valuable tool to 39 assist applicants in satisfying the net improvement performance 40 standard pursuant to s. 373.414(1)(b)3. to ensure significant 41 reductions of pollutant loadings. 42 (e) Water quality enhancement areas that provide water 43 quality enhancement credits to applicants seeking permits under 44 this part and entities seeking to meet an assigned basin 45 management action plan allocation or reasonable assurance plan 46 pursuant to s. 403.067 are considered an appropriate and 47 permittable option. 48 (2) DEFINITIONS.—As used in this section, the term: 49 (a) “Enhancement credit” means a standard unit of measure 50 which represents a quantity of pollutant removed. 51 (b) “Enhancement service area” means the geographic area 52 where the water quality enhancement area can reasonably be 53 expected to offset adverse water quality impacts. 54 (c) “Planning unit” means the total maximum daily load 55 planning unit that is an individual tributary basin or a group 56 of smaller adjacent tributary basins with similar 57 characteristics. 58 (d) “Water quality enhancement area” means a natural system 59 constructed, operated, managed, and maintained pursuant to a 60 permit issued under this part for the purpose of providing 61 offsite, compensatory, regional treatment within an identified 62 enhancement service area, for which enhancement credits may be 63 provided. 64 (e) “Water quality enhancement area permit” means a permit 65 issued for a water quality enhancement area which authorizes the 66 construction, operation, management, and maintenance of the area 67 and the purchase and sale of enhancement credits. 68 (3) WATER QUALITY ENHANCEMENT AREAS.— 69 (a) An environmental resource permit issued by the 70 department under this part must authorize the construction, 71 operation, management, and maintenance of a water quality 72 enhancement area. Department rules pertaining to environmental 73 resource permits apply to water quality enhancement areas and 74 enhancement credits. 75 (b) A water quality enhancement area must address 76 contributions of pollutants for those parameters in an 77 enhancement service area which do not meet state water quality 78 standards. 79 (c) A water quality enhancement area must use, create, or 80 improve natural systems in order to improve water quality. 81 (d) A water quality enhancement area may not provide 82 credits to compensate for wetland or other surface water 83 impacts. 84 (e) A governmental entity may use a water quality 85 enhancement area for its own water quality needs. However, a 86 governmental entity may not act as a sponsor to construct, 87 operate, manage, maintain, or market enhancement credits to 88 third parties. 89 (f) A local government may not require a permit or 90 otherwise impose regulations governing the operation of a water 91 quality enhancement area. 92 (4) WATER QUALITY ENHANCEMENT AREA PERMIT.— 93 (a) To obtain a water quality enhancement area permit, the 94 applicant must provide reasonable assurances that the proposed 95 water quality enhancement area will: 96 1. Meet the requirements for issuance of an environmental 97 resource permit. 98 2. Benefit water quality in the enhancement service area. 99 3. Achieve defined performance or success criteria for the 100 reduction of pollutants or other constituents that prevent 101 receiving waters from meeting state water quality standards. 102 4. Assure long-term pollutant reduction through effective 103 operation and maintenance in perpetuity by designation of a 104 responsible long-term maintenance entity supported by an 105 endowment or other long-term financial assurance sufficient to 106 assure perpetual maintenance. 107 5. Demonstrate sufficient legal or equitable interest in 108 the property to ensure access and perpetual protection and 109 management of the land within the water quality enhancement 110 area. 111 6. Provide for permanent preservation of the site pursuant 112 to s. 704.06. 113 (b) The water quality enhancement area permit must provide 114 for the assessment, valuation, and award of credits based on 115 units of pollutant removed. To assist the department in 116 determining enhancement credits, a water quality enhancement 117 area application must include the following information: 118 1. Rainfall data over the longest period of record 119 available collected from the closest site to the proposed water 120 quality enhancement area, preferably within the same drainage 121 basin. 122 2. Anticipated average annual water quality and quantity 123 inflows to the proposed water quality enhancement area, based on 124 published local data collected over a period of record that most 125 closely matches the rainfall data under this paragraph. 126 3. Site-specific conditions affecting the anticipated 127 performance of the proposed water quality enhancement area, 128 including the proposed treatment type and anticipated associated 129 reduction rates, as demonstrated by the performance of other 130 areas where the treatment type has been established and 131 operating over a minimum of two consecutive wet and dry seasons. 132 4. Proposed data collection sites. An applicant may use 133 data collection stations approved in advance by the department 134 in sites that the department deems insufficient to determine 135 flows and local water quality conditions. 136 (c) The issuance of a water quality enhancement area permit 137 under this section does not preclude the responsibility of an 138 applicant to obtain other applicable federal, state, and local 139 permits for the construction activities associated with the 140 water quality enhancement area. 141 (5) ENHANCEMENT SERVICE AREA.— 142 (a) An enhancement service area must be based on a basin 143 management action plan or reasonable assurance plan boundary 144 adopted by the department. If the department does not adopt a 145 basin management action plan or reasonable assurance plan 146 boundary, the enhancement service area must be the planning 147 unit. 148 (b) A water quality enhancement area may only provide 149 enhancement credits in an enhancement service area, except for: 150 1. Projects with adverse impacts located partially within 151 the enhancement service area. 152 2. Linear projects, such as roadways, transmission lines, 153 distribution lines, pipelines, railways, or seaports listed in 154 s. 311.09(1). 155 3. Projects with total adverse impacts of less than 1 acre 156 in size. 157 (c) Once an enhancement service area has been established 158 by the department, the enhancement service area must be accepted 159 by all water management districts and local governments. 160 (6) ENHANCEMENT CREDITS.— 161 (a) The department or water management district shall 162 authorize the sale and use of enhancement credits to offset 163 adverse water quality impacts of activities regulated under this 164 part or to assist entities seeking to meet an assigned basin 165 management action plan allocation or reasonable assurance plan 166 pursuant to s. 403.067. 167 (b) Water quality improvement projects using natural 168 systems or land use modifications, including, but not limited 169 to, constructed wetlands or minor impoundments that reduce 170 pollutants to a receiving water body, may be used by an 171 applicant to generate enhancement credits if approved by the 172 department. 173 (c) The department shall provide for and maintain a ledger 174 that tracks the award, release, and use of enhancement credits. 175 1. The operator of a water quality enhancement area shall 176 notify the department of the amount of enhancement credits sold 177 or used within 30 days of the date the enhancement credit 178 transaction is completed. 179 2. A water management district that authorizes applicants 180 seeking permits under this part to use enhancement credits to 181 offset water quality impacts must report to the department the 182 amount of enhancement credits used by the applicant. 183 (d) Reductions in pollutant loading required under any 184 state regulatory program are not eligible to be considered as 185 enhancement credits. 186 (e) Enhancement credits may not be used by point source 187 dischargers to satisfy regulatory requirements other than those 188 necessary to obtain an environmental resource permit for 189 construction and operation of the surface water management 190 system of the site. 191 (f) Use of enhancement credits made available by water 192 quality enhancement areas is voluntary. 193 (g) Any landowner, discharger, or other responsible person 194 regulated under this part or s. 403.067 implementing applicable 195 management strategies specified in an adopted basin management 196 action plan or reasonable assurance plan may not be required by 197 any permit or other enforcement action to use enhancement 198 credits to reduce pollutant loads to achieve the pollutant 199 reductions established pursuant to s. 403.067. 200 (h) A local government may not deny the use of enhancement 201 credits due to the location of the water quality enhancement 202 area outside the jurisdiction of the local government. 203 (7) AUTHORITY.—The authority granted to the department 204 under this section is supplemental to the authority granted 205 under s. 403.067(8). 206 (8) RULES.—The department shall adopt rules to implement 207 this section. 208 Section 2. This act shall take effect upon becoming a law.