Florida Senate - 2024 SB 480
By Senator DiCeglie
18-00388A-24 2024480__
1 A bill to be entitled
2 An act relating to renewable natural gas; amending s.
3 366.91, F.S.; authorizing a public utility to recover
4 prudently incurred renewable natural gas
5 infrastructure project costs through an appropriate
6 Florida Public Service Commission cost-recovery
7 mechanism; providing that such costs are not subject
8 to further actions except under certain circumstances;
9 specifying eligible renewable natural gas
10 infrastructure projects; requiring that cost recovery
11 for such projects be approved by the commission;
12 providing requirements for the approval determination;
13 prohibiting cost recovery until a facility is placed
14 in service; providing that certain other regulatory
15 accounting rules may apply to such cost recovery;
16 amending s. 373.807, F.S.; revising the required
17 contents of a basin management action plan for an
18 Outstanding Florida Spring to include identification
19 of certain water quality improvement projects;
20 amending s. 403.067, F.S.; revising the required
21 contents of a wastewater treatment plan within a basin
22 management action plan; amending s. 403.7055, F.S.;
23 encouraging counties and municipalities to develop
24 regional solutions to certain energy issues; requiring
25 the Department of Environmental Protection to provide
26 guidelines and technical assistance to such counties
27 and municipalities; amending s. 570.841, F.S.;
28 authorizing the farm-to-fuel initiative to address the
29 production and capture of renewable natural gas;
30 revising the purposes of the department’s statewide
31 comprehensive information and education program;
32 reenacting ss. 403.0671(1)(a) and (3) and
33 403.0673(2)(e) and (f), F.S., relating to basin
34 management action plan wastewater reports and the
35 water quality improvement grant program, to
36 incorporate the amendment made to s. 403.067, F.S., in
37 references thereto; providing an effective date.
38
39 Be It Enacted by the Legislature of the State of Florida:
40
41 Section 1. Subsection (10) is added to section 366.91,
42 Florida Statutes, to read:
43 366.91 Renewable energy.—
44 (10) A public utility may recover, through an appropriate
45 cost-recovery mechanism administered by the commission,
46 prudently incurred costs for renewable natural gas
47 infrastructure projects. If the commission determines that such
48 costs were reasonable and that the project will facilitate
49 achieving the goals of subsection (1), the commission must deem
50 the project and associated costs prudent for purposes of cost
51 recovery and may not further subject the project to disallowance
52 except for fraud, perjury, or intentional withholding of key
53 information by the public utility. For purposes of utility cost
54 recovery under this subsection only, the term “renewable natural
55 gas” may include a mixture of natural gas and renewable natural
56 gas. Eligible renewable natural gas projects must be located
57 within this state. Types of costs eligible for cost recovery
58 include, but are not limited to, capital investment in projects
59 necessary to prepare, clean, or otherwise produce renewable
60 natural gas for pipeline distribution and usage; capital
61 investment in facilities, including pipelines that are necessary
62 to inject and deliver renewable natural gas and renewable
63 natural gas storage facilities; operation and maintenance
64 expenses associated with any such renewable natural gas
65 infrastructure projects; and an appropriate return on investment
66 consistent with that allowed for other utility plants that
67 provide service to customers. Cost recovery for any renewable
68 natural gas infrastructure project sought pursuant to this
69 subsection must be approved by the commission.
70 (a) In assessing whether cost recovery for a renewable
71 natural gas infrastructure project is appropriate, the
72 commission must consider whether the projected costs for such
73 renewable natural gas infrastructure project are reasonable and
74 consistent with this subsection.
75 (b) Recovery of costs incurred by a public utility for a
76 renewable natural gas project approved for cost recovery under
77 this subsection may not be allowed until such facility is placed
78 in service. Upon approval of cost recovery by the commission,
79 costs incurred before the facility is placed in service may be
80 deferred on the public utility’s books for recovery once the
81 facility is in service. This does not preclude application of
82 any other regulatory accounting rules that are otherwise deemed
83 appropriate, including, but not limited to, normal recovery of
84 costs for construction work in progress.
85 Section 2. Paragraph (b) of subsection (1) and subsection
86 (3) of section 373.807, Florida Statutes, are amended to read:
87 373.807 Protection of water quality in Outstanding Florida
88 Springs.—By July 1, 2016, the department shall initiate
89 assessment, pursuant to s. 403.067(3), of Outstanding Florida
90 Springs or spring systems for which an impairment determination
91 has not been made under the numeric nutrient standards in effect
92 for spring vents. Assessments must be completed by July 1, 2018.
93 (1)
94 (b) A basin management action plan for an Outstanding
95 Florida Spring must shall be adopted within 2 years after its
96 initiation and must include, at a minimum:
97 1. A list of all specific projects and programs identified
98 to implement a nutrient total maximum daily load;
99 2. A list of all specific projects identified in any
100 incorporated onsite sewage treatment and disposal system
101 remediation plan, if applicable;
102 3. A priority rank for each listed project;
103 4. For each listed project, a planning level cost estimate
104 and the estimated date of completion;
105 5. The source and amount of financial assistance to be made
106 available by the department, a water management district, or
107 other entity for each listed project;
108 6. An estimate of each listed project’s nutrient load
109 reduction;
110 7. Identification of each point source or category of
111 nonpoint sources, including, but not limited to, urban turf
112 fertilizer, sports turf fertilizer, agricultural fertilizer,
113 onsite sewage treatment and disposal systems, wastewater
114 treatment facilities, animal wastes, and stormwater facilities.
115 An estimated allocation of the pollutant load must be provided
116 for each point source or category of nonpoint sources; and
117 8. Identification of water quality improvement projects
118 that can also produce and capture renewable natural gas through
119 the use of anaerobic digestion or other similar treatment
120 technologies at wastewater treatment plants, livestock farms,
121 food production facilities, and organic waste management
122 operations; and
123 9. An implementation plan designed with a target to achieve
124 the nutrient total maximum daily load no more than 20 years
125 after the adoption of a basin management action plan.
126
127 The department shall develop a schedule establishing 5-year, 10
128 year, and 15-year targets for achieving the nutrient total
129 maximum daily load. The schedule shall be used to provide
130 guidance for planning and funding purposes and is exempt from
131 chapter 120.
132 (3) As part of a basin management action plan that includes
133 an Outstanding Florida Spring, the department, relevant local
134 governments, and relevant local public and private wastewater
135 utilities shall develop an onsite sewage treatment and disposal
136 system remediation plan for a spring if the department
137 determines onsite sewage treatment and disposal systems within a
138 basin management action plan contribute at least 20 percent of
139 nonpoint source nitrogen pollution or if the department
140 determines remediation is necessary to achieve the total maximum
141 daily load. The plan must identify cost-effective and
142 financially feasible projects necessary to reduce the nutrient
143 impacts from onsite sewage treatment and disposal systems and
144 shall be completed and adopted as part of the basin management
145 action plan no later than the first 5-year milestone required by
146 subparagraph (1)(b)9. subparagraph (1)(b)8. The department is
147 the lead agency in coordinating the preparation of and the
148 adoption of the plan. The department shall:
149 (a) Collect and evaluate credible scientific information on
150 the effect of nutrients, particularly forms of nitrogen, on
151 springs and springs systems; and
152 (b) Develop a public education plan to provide area
153 residents with reliable, understandable information about onsite
154 sewage treatment and disposal systems and springs.
155
156 In addition to the requirements in s. 403.067, the plan must
157 include options for repair, upgrade, replacement, drainfield
158 modification, addition of effective nitrogen reducing features,
159 connection to a central sewerage system, or other action for an
160 onsite sewage treatment and disposal system or group of systems
161 within a basin management action plan that contribute at least
162 20 percent of nonpoint source nitrogen pollution or if the
163 department determines remediation is necessary to achieve a
164 total maximum daily load. For these systems, the department
165 shall include in the plan a priority ranking for each system or
166 group of systems that requires remediation and shall award funds
167 to implement the remediation projects contingent on an
168 appropriation in the General Appropriations Act, which may
169 include all or part of the costs necessary for repair, upgrade,
170 replacement, drainfield modification, addition of effective
171 nitrogen reducing features, initial connection to a central
172 sewerage system, or other action. In awarding funds, the
173 department may consider expected nutrient reduction benefit per
174 unit cost, size and scope of project, relative local financial
175 contribution to the project, and the financial impact on
176 property owners and the community. The department may waive
177 matching funding requirements for proposed projects within an
178 area designated as a rural area of opportunity under s.
179 288.0656.
180 Section 3. Paragraph (a) of subsection (7) of section
181 403.067, Florida Statutes, is amended to read:
182 403.067 Establishment and implementation of total maximum
183 daily loads.—
184 (7) DEVELOPMENT OF BASIN MANAGEMENT PLANS AND
185 IMPLEMENTATION OF TOTAL MAXIMUM DAILY LOADS.—
186 (a) Basin management action plans.—
187 1. In developing and implementing the total maximum daily
188 load for a waterbody, the department, or the department in
189 conjunction with a water management district, may develop a
190 basin management action plan that addresses some or all of the
191 watersheds and basins tributary to the waterbody. Such plan must
192 integrate the appropriate management strategies available to the
193 state through existing water quality protection programs to
194 achieve the total maximum daily loads and may provide for phased
195 implementation of these management strategies to promote timely,
196 cost-effective actions as provided for in s. 403.151. The plan
197 must establish a schedule implementing the management
198 strategies, establish a basis for evaluating the plan’s
199 effectiveness, and identify feasible funding strategies for
200 implementing the plan’s management strategies. The management
201 strategies may include regional treatment systems or other
202 public works, when appropriate, and voluntary trading of water
203 quality credits to achieve the needed pollutant load reductions.
204 2. A basin management action plan must equitably allocate,
205 pursuant to paragraph (6)(b), pollutant reductions to individual
206 basins, as a whole to all basins, or to each identified point
207 source or category of nonpoint sources, as appropriate. For
208 nonpoint sources for which best management practices have been
209 adopted, the initial requirement specified by the plan must be
210 those practices developed pursuant to paragraph (c). When
211 appropriate, the plan may take into account the benefits of
212 pollutant load reduction achieved by point or nonpoint sources
213 that have implemented management strategies to reduce pollutant
214 loads, including best management practices, before the
215 development of the basin management action plan. The plan must
216 also identify the mechanisms that will address potential future
217 increases in pollutant loading.
218 3. The basin management action planning process is intended
219 to involve the broadest possible range of interested parties,
220 with the objective of encouraging the greatest amount of
221 cooperation and consensus possible. In developing a basin
222 management action plan, the department shall assure that key
223 stakeholders, including, but not limited to, applicable local
224 governments, water management districts, the Department of
225 Agriculture and Consumer Services, other appropriate state
226 agencies, local soil and water conservation districts,
227 environmental groups, regulated interests, and affected
228 pollution sources, are invited to participate in the process.
229 The department shall hold at least one public meeting in the
230 vicinity of the watershed or basin to discuss and receive
231 comments during the planning process and shall otherwise
232 encourage public participation to the greatest practicable
233 extent. Notice of the public meeting must be published in a
234 newspaper of general circulation in each county in which the
235 watershed or basin lies at least 5 days, but not more than 15
236 days, before the public meeting. A basin management action plan
237 does not supplant or otherwise alter any assessment made under
238 subsection (3) or subsection (4) or any calculation or initial
239 allocation.
240 4. Each new or revised basin management action plan must
241 include all of the following:
242 a. The appropriate management strategies available through
243 existing water quality protection programs to achieve total
244 maximum daily loads, which may provide for phased implementation
245 to promote timely, cost-effective actions as provided for in s.
246 403.151.
247 b. A description of best management practices adopted by
248 rule.
249 c. For the applicable 5-year implementation milestone, a
250 list of projects that will achieve the pollutant load reductions
251 needed to meet the total maximum daily load or the load
252 allocations established pursuant to subsection (6). Each project
253 must include a planning-level cost estimate and an estimated
254 date of completion.
255 d. A list of projects developed pursuant to paragraph (e),
256 if applicable.
257 e. The source and amount of financial assistance to be made
258 available by the department, a water management district, or
259 other entity for each listed project, if applicable.
260 f. A planning-level estimate of each listed project’s
261 expected load reduction, if applicable.
262 5. The department shall adopt all or any part of a basin
263 management action plan and any amendment to such plan by
264 secretarial order pursuant to chapter 120 to implement this
265 section.
266 6. The basin management action plan must include 5-year
267 milestones for implementation and water quality improvement, and
268 an associated water quality monitoring component sufficient to
269 evaluate whether reasonable progress in pollutant load
270 reductions is being achieved over time. An assessment of
271 progress toward these milestones must shall be conducted every 5
272 years, and revisions to the plan must shall be made as
273 appropriate. Any entity with a specific pollutant load reduction
274 requirement established in a basin management action plan shall
275 identify the projects or strategies that such entity will
276 undertake to meet current 5-year pollution reduction milestones,
277 beginning with the first 5-year milestone for new basin
278 management action plans, and submit such projects to the
279 department for inclusion in the appropriate basin management
280 action plan. Each project identified must include an estimated
281 amount of nutrient reduction that is reasonably expected to be
282 achieved based on the best scientific information available.
283 Revisions to the basin management action plan must shall be made
284 by the department in cooperation with basin stakeholders.
285 Revisions to the management strategies required for nonpoint
286 sources must follow the procedures in subparagraph (c)4. Revised
287 basin management action plans must be adopted pursuant to
288 subparagraph 5.
289 7. In accordance with procedures adopted by rule under
290 paragraph (9)(c), basin management action plans, and other
291 pollution control programs under local, state, or federal
292 authority as provided in subsection (4), may allow point or
293 nonpoint sources that will achieve greater pollutant reductions
294 than required by an adopted total maximum daily load or
295 wasteload allocation to generate, register, and trade water
296 quality credits for the excess reductions to enable other
297 sources to achieve their allocation; however, the generation of
298 water quality credits does not remove the obligation of a source
299 or activity to meet applicable technology requirements or
300 adopted best management practices. Such plans must allow trading
301 between NPDES permittees, and trading that may or may not
302 involve NPDES permittees, where the generation or use of the
303 credits involve an entity or activity not subject to department
304 water discharge permits whose owner voluntarily elects to obtain
305 department authorization for the generation and sale of credits.
306 8. The department’s rule relating to the equitable
307 abatement of pollutants into surface waters does do not apply to
308 water bodies or waterbody segments for which a basin management
309 plan that takes into account future new or expanded activities
310 or discharges has been adopted under this section.
311 9. In order to promote resilient wastewater utilities, if
312 the department identifies domestic wastewater treatment
313 facilities or onsite sewage treatment and disposal systems as
314 contributors of at least 20 percent of point source or nonpoint
315 source nutrient pollution or if the department determines
316 remediation is necessary to achieve the total maximum daily
317 load, a basin management action plan for a nutrient total
318 maximum daily load must include the following:
319 a. A wastewater treatment plan developed by each local
320 government, in cooperation with the department, the water
321 management district, and the public and private domestic
322 wastewater treatment facilities within the jurisdiction of the
323 local government, which that addresses domestic wastewater. The
324 wastewater treatment plan must:
325 (I) Provide for construction, expansion, or upgrades
326 necessary to achieve the total maximum daily load requirements
327 applicable to the domestic wastewater treatment facility.
328 (II) Include the permitted capacity in average annual
329 gallons per day for the domestic wastewater treatment facility;
330 the average nutrient concentration and the estimated average
331 nutrient load of the domestic wastewater; a projected timeline
332 of the dates by which the construction of any facility
333 improvements will begin and be completed and the date by which
334 operations of the improved facility will begin; the estimated
335 cost of the improvements; any renewable energy opportunities
336 stemming from the production and capture of renewable natural
337 gas; and the identity of responsible parties.
338
339 The wastewater treatment plan must be adopted as part of the
340 basin management action plan no later than July 1, 2025. A local
341 government that does not have a domestic wastewater treatment
342 facility in its jurisdiction is not required to develop a
343 wastewater treatment plan unless there is a demonstrated need to
344 establish a domestic wastewater treatment facility within its
345 jurisdiction to improve water quality necessary to achieve a
346 total maximum daily load. A local government is not responsible
347 for a private domestic wastewater facility’s compliance with a
348 basin management action plan unless such facility is operated
349 through a public-private partnership to which the local
350 government is a party.
351 b. An onsite sewage treatment and disposal system
352 remediation plan developed by each local government in
353 cooperation with the department, the Department of Health, water
354 management districts, and public and private domestic wastewater
355 treatment facilities.
356 (I) The onsite sewage treatment and disposal system
357 remediation plan must identify cost-effective and financially
358 feasible projects necessary to achieve the nutrient load
359 reductions required for onsite sewage treatment and disposal
360 systems. To identify cost-effective and financially feasible
361 projects for remediation of onsite sewage treatment and disposal
362 systems, the local government shall:
363 (A) Include an inventory of onsite sewage treatment and
364 disposal systems based on the best information available;
365 (B) Identify onsite sewage treatment and disposal systems
366 that would be eliminated through connection to existing or
367 future central domestic wastewater infrastructure in the
368 jurisdiction or domestic wastewater service area of the local
369 government, that would be replaced with or upgraded to enhanced
370 nutrient-reducing onsite sewage treatment and disposal systems,
371 or that would remain on conventional onsite sewage treatment and
372 disposal systems;
373 (C) Estimate the costs of potential onsite sewage treatment
374 and disposal system connections, upgrades, or replacements; and
375 (D) Identify deadlines and interim milestones for the
376 planning, design, and construction of projects.
377 (II) The department shall adopt the onsite sewage treatment
378 and disposal system remediation plan as part of the basin
379 management action plan no later than July 1, 2025, or as
380 required for Outstanding Florida Springs under s. 373.807.
381 10. The installation of new onsite sewage treatment and
382 disposal systems constructed within a basin management action
383 plan area adopted under this section, a reasonable assurance
384 plan, or a pollution reduction plan is prohibited where
385 connection to a publicly owned or investor-owned sewerage system
386 is available as defined in s. 381.0065(2)(a). On lots of 1 acre
387 or less within a basin management action plan adopted under this
388 section, a reasonable assurance plan, or a pollution reduction
389 plan where a publicly owned or investor-owned sewerage system is
390 not available, the installation of enhanced nutrient-reducing
391 onsite sewage treatment and disposal systems or other wastewater
392 treatment systems that achieve at least 65 percent nitrogen
393 reduction is required.
394 11. When identifying wastewater projects in a basin
395 management action plan, the department may not require the
396 higher cost option if it achieves the same nutrient load
397 reduction as a lower cost option. A regulated entity may choose
398 a different cost option if it complies with the pollutant
399 reduction requirements of an adopted total maximum daily load
400 and meets or exceeds the pollution reduction requirement of the
401 original project.
402 12. Annually, local governments subject to a basin
403 management action plan or located within the basin of a
404 waterbody not attaining nutrient or nutrient-related standards
405 must provide to the department an update on the status of
406 construction of sanitary sewers to serve such areas, in a manner
407 prescribed by the department.
408 Section 4. Section 403.7055, Florida Statutes, is amended
409 to read:
410 403.7055 Methane and renewable natural gas processing and
411 capture.—
412 (1) Each county and municipality is encouraged to develop
413 form multicounty regional solutions to the processing, capture,
414 and reuse or sale of methane gas and renewable natural gas as
415 defined in s. 366.91(2) from landfills and wastewater treatment
416 facilities.
417 (2) The department shall provide planning guidelines and
418 technical assistance to each county and municipality to develop
419 and implement such regional multicounty efforts.
420 Section 5. Section 570.841, Florida Statutes, is amended to
421 read:
422 570.841 Farm-to-fuel initiative.—
423 (1) The department may develop a farm-to-fuel initiative to
424 enhance the market for and promote the production and
425 distribution of renewable energy from Florida-grown crops,
426 agricultural wastes and residues, and other biomass and to
427 enhance the value of agricultural products or expand
428 agribusiness in this the state. The initiative may address the
429 production and capture of renewable natural gas through the use
430 of digesters and other treatment technologies at livestock
431 farms, food production facilities, and other agricultural waste
432 management operations.
433 (2) The department may conduct a statewide comprehensive
434 information and education program aimed at educating the general
435 public and agricultural producers about the benefits of
436 renewable energy and the use and production of alternative
437 fuels.
438 Section 6. For the purpose of incorporating the amendment
439 made by this act to section 403.067, Florida Statutes, in
440 references thereto, paragraph (a) of subsection (1) and
441 subsection (3) of section 403.0671, Florida Statutes, are
442 reenacted to read:
443 403.0671 Basin management action plan wastewater reports.—
444 (1) By July 1, 2021, the department, in coordination with
445 the county health departments, wastewater treatment facilities,
446 and other governmental entities, shall submit a report to the
447 Governor, the President of the Senate, and the Speaker of the
448 House of Representatives evaluating the costs of wastewater
449 projects identified in the basin management action plans
450 developed pursuant to ss. 373.807 and 403.067(7) and the onsite
451 sewage treatment and disposal system remediation plans and other
452 restoration plans developed to meet the total maximum daily
453 loads required under s. 403.067. The report must include:
454 (a) Projects to:
455 1. Replace onsite sewage treatment and disposal systems
456 with enhanced nutrient-reducing onsite sewage treatment and
457 disposal systems.
458 2. Install or retrofit onsite sewage treatment and disposal
459 systems with enhanced nutrient-reducing technologies.
460 3. Construct, upgrade, or expand domestic wastewater
461 treatment facilities to meet the wastewater treatment plan
462 required under s. 403.067(7)(a)9.
463 4. Connect onsite sewage treatment and disposal systems to
464 domestic wastewater treatment facilities;
465 (3) Beginning January 1, 2022, and each January 1
466 thereafter, the department shall submit to the Office of
467 Economic and Demographic Research the cost estimates for
468 projects required in s. 403.067(7)(a)9. The office shall include
469 the project cost estimates in its annual assessment conducted
470 pursuant to s. 403.928.
471 Section 7. For the purpose of incorporating the amendment
472 made by this act to section 403.067, Florida Statutes, in
473 references thereto, paragraphs (e) and (f) of subsection (2) of
474 section 403.0673, Florida Statutes, are reenacted to read:
475 403.0673 Water quality improvement grant program.—A grant
476 program is established within the Department of Environmental
477 Protection to address wastewater, stormwater, and agricultural
478 sources of nutrient loading to surface water or groundwater.
479 (2) The department may provide grants for all of the
480 following types of projects that reduce the amount of nutrients
481 entering those waterbodies identified in subsection (1):
482 (e) Projects identified pursuant to s. 403.067(7)(a) or
483 (e).
484 (f) Projects identified in a wastewater treatment plan or
485 an onsite sewage treatment and disposal system remediation plan
486 developed pursuant to s. 403.067(7)(a)9.a. and b.
487 Section 8. This act shall take effect July 1, 2024.