Florida Senate - 2024 COMMITTEE AMENDMENT Bill No. CS for SB 1532 Ì490056(Î490056 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/07/2024 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Community Affairs (Brodeur) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Present paragraphs (a) through (e) of subsection 6 (2) of section 373.4134, Florida Statutes, are redesignated as 7 paragraphs (b) through (f), respectively, a new paragraph (a) is 8 added to that subsection, and paragraphs (b), (d), and (e) of 9 subsection (1), paragraph (b) of subsection (3), and paragraphs 10 (a) and (j) of subsection (7) of that section are amended, to 11 read: 12 373.4134 Water quality enhancement areas.— 13 (1) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds 14 that: 15 (b) An expansion of existing authority for regional 16 treatment to include offsite compensatory treatment in water 17 quality enhancement areas to make enhancement credits available 18 for purchase by an applicantgovernmentalentitiesto address 19 impacts regulated under this part is needed. 20 (d) Water quality enhancement areas are a valuable tool to 21 assist an applicantgovernmental entitiesin satisfying the net 22 improvement performance standard under s. 373.414(1)(b)3. to 23 ensure significant reductions of pollutant loadings. 24 (e) Water quality enhancement areas that provide water 25 quality enhancement credits to applicantsgovernmental entities26 seeking permits under this part and to governmental entities 27 seeking to meet an assigned basin management action plan 28 allocation or reasonable assurance plan under s. 403.067 are 29 considered an appropriate and permittable option. 30 (2) DEFINITIONS.—As used in this section, the term: 31 (a) “Applicant” means a governmental or private sector 32 entity that wishes to purchase water quality enhancement credits 33 to meet an assigned basin management action plan allocation or 34 reasonable assurance plan or for the purpose of achieving the 35 net improvement performance standard under s. 373.414(1)(b)3. 36 (3) WATER QUALITY ENHANCEMENT AREAS.— 37 (b) Water quality enhancement credits may be soldonlyto 38 applicantsgovernmental entitiesseeking to meet an assigned 39 basin management action plan allocation or reasonable assurance 40 plan or for the purpose of achieving net improvement performance 41 standards under s. 373.414(1)(b)3. afterthe governmental entity42has providedreasonable assurances have been provided for the 43assurance of meeting department rules fordesign and 44 construction of all onsite stormwater management, as required by 45 law. 46 (7) ENHANCEMENT CREDITS.— 47 (a) The department or water management district shall 48 authorize the sale and use of enhancement credits to applicants 49governmental entitiesto address adverse water quality impacts 50 of activities regulated under this part or to assist 51 governmental entities seeking to meet required nonpoint source 52 contribution reductions assigned in a basin management action 53 plan or reasonable assurance plan under s. 403.067. 54 (j) Notwithstanding any other law, this section does not 55 limit or restrict the authority of the department to deny the 56 use of enhancement credits when the department is not reasonably 57 assured that the use of the credits will not cause or contribute 58 to a violation of water quality standards, even if the project 59 being implemented by the applicantgovernmental entityis within 60 the enhancement service area. The department may allow the use 61 of enhancement credits if the department receives a request for 62 the use of enhancement credits and determines that such use will 63 not cause or contribute to a violation of water quality 64 standards. 65 Section 2. Subsection (1) of section 373.4135, Florida 66 Statutes, is amended, and subsection (8) is added to that 67 section, to read: 68 373.4135 Mitigation banks and offsite regional mitigation.— 69 (1) The Legislature finds that the adverse impacts of 70 activities regulated under this part may be offset by the 71 creation, maintenance, and use of mitigation banks and offsite 72 regional mitigation. Mitigation banks and offsite regional 73 mitigation can enhance the certainty of mitigation and provide 74 ecological value due to the improved likelihood of environmental 75 success associated with their proper construction, maintenance, 76 and management. Therefore, the department and the water 77 management districts are directed toparticipate in and78 encourage the establishment of privateand publicmitigation 79 banks and offsite regional mitigation on lands owned by a local 80 government, when such lands are located in a credit-deficient 81 basin as defined in paragraph (8)(a) and the proposed mitigation 82 bank or offsite regional mitigation would provide one or more of 83 the deficient habitat type credits described in subparagraph 84 (8)(a)2. Mitigation banks and offsite regional mitigation should 85 emphasize the restoration and enhancement of degraded ecosystems 86 and the preservation of uplands and wetlands as intact 87 ecosystems rather than alteration of landscapes to create 88 wetlands. This is best accomplished through restoration of 89 ecological communities that were historically present. 90 (a) The Legislature intends that the provisions for 91 establishing mitigation banks apply equally to both public and 92 private entities, except that the rules of the department and 93 water management districts may set forth different measures 94 governing financial responsibility, and different measures 95 governing legal interest, needed to ensure the construction and 96 perpetual protection of a mitigation bank. 97 (b) The Legislature recognizes the importance of mitigation 98 banks as an appropriate and allowable mitigation alternative to 99 permittee-responsible mitigation. However, the Legislature also 100 recognizes that certain timing and geographical constraints 101 could result in the unavailability of mitigation bank credits 102 for a certain project upon completion of the project’s 103 application. If state and federal mitigation credits are not 104 available to offset the adverse impacts of a project, a local 105 government may allow permittee-responsible mitigation consisting 106 of the restoration or enhancement of lands purchased and owned 107 by a local government for conservation purposes, and such 108 mitigation must conform to the permitting requirements of s. 109 373.4136. Except when a local government has allowed a public or 110 private mitigation project to be created on land it has 111 purchased for conservation purposes pursuant to this paragraph, 112 a governmental entity may not create or provide mitigation for a 113 project other than its own unless the governmental entity uses 114 land that was not previously purchased for conservation and 115 unless the governmental entity provides the same financial 116 assurances as required for mitigation banks permitted under s. 117 373.4136. This paragraph does not apply to: 118 1. Mitigation banks permitted before December 31, 2011, 119 under s. 373.4136; 120 2. Offsite regional mitigation areas established before 121 December 31, 2011, under subsection (6) or, when credits are not 122 available at a mitigation bank permitted under s. 373.4136, 123 mitigation areas created by a local government which were 124 awarded mitigation credits pursuant to the uniform mitigation 125 assessment method as provided in chapter 62-345, Florida 126 Administrative Code, under a permit issued before December 31, 127 2011; 128 3. Mitigation for transportation projects under ss. 129 373.4137 and 373.4139; 130 4. Mitigation for impacts from mining activities under s. 131 373.41492; 132 5. Mitigation provided for single-family lots or homeowners 133 under subsection (7); 134 6. Entities authorized in chapter 98-492, Laws of Florida; 135 7. Mitigation provided for electric utility impacts 136 certified under part II of chapter 403; or 137 8. Mitigation provided on sovereign submerged lands under 138 subsection (6). 139 (c) It is the further intent of the Legislature that 140 mitigation banks and offsite regional mitigation be considered 141 appropriate and a permittable mitigation option under the 142 conditions specified by the rules of the department and water 143 management districts. 144 (d) Offsite mitigation, including offsite regional 145 mitigation, may be located outside the regional watershed in 146 which the adverse impacts of an activity regulated under this 147 part are located, if such adverse impacts are offset by the 148 offsite mitigation. 149 (e) The department or water management district may allow 150 the use of a mitigation bank or offsite regional mitigation 151 alone or in combination with other forms of mitigation to offset 152 adverse impacts of activities regulated under this part. 153 (f) When an applicant seekingfora permit underthe154provisions ofthis part other than this section and s. 373.4136 155 submits more than one mitigation proposal to the department or a 156 water management district, the department or water management 157 district shall, in evaluating each proposal, ensure that such 158 proposal adequately offsets the adverse impacts. 159 (8) It is the intent of the Legislature to allow limited 160 use of local government land, including lands acquired for 161 conservation, for private sector mitigation banks, provided that 162 the private mitigation banks are located in credit-deficient 163 basins and would produce the habitat type credits that are 164 unavailable or insufficient in such basins. As used in this 165 subsection, the term “local government” includes a county, 166 municipality, or special district as those terms are defined in 167 s. 165.031. 168 (a) A basin is considered to be a credit-deficient basin if 169 it is a drainage basin or a corresponding hydrologic code, and 170 has all of the following features: 171 1. At least one mitigation bank has been permitted and 172 established on lands not owned by a governmental entity, and 173 that mitigation bank no longer has one of the habitat type 174 credits listed in subparagraph 2. available for purchase; 175 2. There is a documented shortage of either forested 176 freshwater, non-forested freshwater, forested saltwater, or non 177 forested saltwater habitat type credits; and 178 3. Pending mitigation bank applications on private land or 179 pending credit releases from mitigation banks on nongovernmental 180 land are unlikely to alleviate the credit shortage. 181 (b) A local government with land in a credit-deficient 182 basin may, through the public procurement processes identified 183 in chapter 287 or other established competitive procurement 184 processes, consider a proposal from a private entity applicant 185 for the right to establish a mitigation bank on the local 186 government land, including such lands purchased for conservation 187 purposes, provided acquisition encumbrances do not exist to the 188 contrary. 189 (c) If such a mitigation bank is to be established and 190 operated on local government land, the local government and 191 private applicant must enter into a use agreement that meets the 192 requirements of this paragraph and that requires the private 193 applicant to establish and operate the mitigation bank in 194 conformance with the permitting requirements of s. 373.4136, and 195 the rules adopted thereunder. The use agreement must: 196 1. Include a requirement that the local government 197 landowner assume the role of long-term steward of the property, 198 and state that the landowner will grant a conservation easement 199 or substantially similar recordable instrument pursuant to s. 200 704.06, in favor of the permitting agency, if a conservation 201 easement or substantially similar recordable instrument 202 acceptable to the permitting agency does not already exist; and 203 2. Include a requirement for the private applicant to do 204 all of the following: 205 a. Provide bid and performance security instruments for a 206 minimum of 5 percent of the total bid amount, to ensure that a 207 use agreement with the local government is executed and a 208 mitigation bank permit is applied for by the private applicant. 209 b. Operate and maintain the mitigation bank until final 210 permit success criteria are met, as permitted by the department 211 or water management district. 212 c. Agree to establish financial assurance for long-term 213 management in an amount agreeable to the local government 214 landowner and as provided for in rules adopted pursuant to this 215 section and s. 373.4136, for use by the local government as the 216 long-term steward of the land, after the mitigation bank final 217 environmental resource permit success criteria are met. The 218 private sector applicant may also use an endowment to provide 219 financial assurances. 220 d. Acknowledge that denial of the state mitigation bank 221 permit application will terminate the use agreement. 222 e. Acknowledge that failure to obtain the mitigation bank 223 permit within 2 years after the use agreement execution date 224 will terminate the use agreement, unless it is extended for good 225 cause by the local government. 226 (f) Public funds may not be used to fund the financial 227 assurances for construction and implementation of the mitigation 228 bank or for the establishment of the long-term management 229 financial assurances. 230 (g) In determining the number of mitigation bank credits to 231 be awarded to a mitigation bank established pursuant to this 232 subsection, the proposed mitigation bank’s location in or 233 adjacent to the local government conservation lands may not 234 increase the uniform mitigation assessment method location 235 factor assessment and scoring value, even if the conservation 236 status of the mitigation bank land is improved due to such 237 location. 238 (h) Credit deficiency is confirmed at the time the use 239 agreement is executed by the parties. Once confirmed, the 240 mitigation bank application may proceed, even if the deficiency 241 is relieved. 242 (i) While not required, the department, in coordination 243 with the water management districts, may adopt rules to 244 implement this subsection. 245 Section 3. For the purpose of incorporating the amendment 246 made by this act to section 373.4135, Florida Statutes, in 247 references thereto, paragraphs (a) and (c) of subsection (1) of 248 section 403.9332, Florida Statutes, are reenacted to read: 249 403.9332 Mitigation and enforcement.— 250 (1)(a) Any area in which 5 percent or more of the trimmed 251 mangrove trees have been trimmed below 6 feet in height, except 252 as provided in s. 403.9326(1)(c), (d), (f), (g), and (h), 253 destroyed, defoliated, or removed as a result of trimming 254 conducted under s. 403.9326 or s. 403.9327 must be restored or 255 mitigated. Restoration must be accomplished by replanting 256 mangroves, in the same location and of the same species as each 257 mangrove destroyed, defoliated, removed, or trimmed, to achieve 258 within 5 years a canopy area equivalent to the area destroyed, 259 removed, defoliated, or trimmed; or mitigation must be 260 accomplished by replanting offsite, in areas suitable for 261 mangrove growth, mangroves to achieve within 5 years a canopy 262 area equivalent to the area destroyed, removed, defoliated, or 263 trimmed. Where all or a portion of the restoration or mitigation 264 is not practicable, as determined by the department or delegated 265 local government, the impacts resulting from the destruction, 266 defoliation, removal, or trimming of the mangroves must be 267 offset by donating a sufficient amount of money to offset the 268 impacts, which must be used for the restoration, enhancement, 269 creation, or preservation of mangrove wetlands within a 270 restoration, enhancement, creation, or preservation project 271 approved by the department or delegated local government; or by 272 purchasing credits from a mitigation bank created under s. 273 373.4135 at a mitigation ratio of 2-to-1 credits to affected 274 area. The donation must be equivalent to the cost, as verified 275 by the department or delegated local government, of creating 276 mangrove wetlands at a 2-to-1, created versus affected ratio, 277 based on canopy area. The donation may not be less than $4 per 278 square foot of created wetland area. 279 (c) If mangroves are to be trimmed or altered under a 280 permit issued under s. 403.9328, the department or delegated 281 local government may require mitigation. The department or 282 delegated local government shall establish reasonable mitigation 283 requirements that must include, as an option, the use of 284 mitigation banks created under s. 373.4135, where appropriate. 285 The department’s mitigation requirements must ensure that 286 payments received as mitigation are sufficient to offset impacts 287 and are used for mangrove creation, preservation, protection, or 288 enhancement. 289 Section 4. This act shall take effect July 1, 2024. 290 291 ================= T I T L E A M E N D M E N T ================ 292 And the title is amended as follows: 293 Delete everything before the enacting clause 294 and insert: 295 A bill to be entitled 296 An act relating to mitigation; amending s. 373.4134, 297 F.S.; revising legislative findings; defining the term 298 “applicant”; revising the entities to whom and 299 purposes for which water quality enhancement credits 300 may be sold; requiring the Department of Environmental 301 Protection or water management districts to authorize 302 the sale and use of such credits to applicants, rather 303 than to governmental entities, to address adverse 304 water quality impacts of certain activities; revising 305 construction; amending s. 373.4135, F.S.; revising 306 legislative findings; providing legislative intent; 307 defining the term “local government”; providing 308 circumstances under which basins are considered to be 309 credit-deficient basins; authorizing local governments 310 with land in credit-deficient basins to consider bids 311 from private-sector applicants to establish mitigation 312 banks on such lands; requiring use agreements that 313 meet certain requirements for such mitigation banks; 314 prohibiting the use of public funds to fund financial 315 assurances for certain purposes; providing that 316 specified factors may not increase the uniform 317 mitigation assessment method location factor 318 assessment and scoring value in determining the number 319 of mitigation bank credits to be awarded; providing 320 that credit deficiency is confirmed at the time of 321 filing a permit application; authorizing the 322 department, in coordination with the water management 323 districts, to adopt rules; reenacting s. 324 403.9332(1)(a) and (c), F.S., relating to mitigation 325 and enforcement, to incorporate the amendments made to 326 s. 373.4135, F.S., in references thereto; providing an 327 effective date.