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 mustshallbe 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;and117 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 mustshallbe conducted every 5 272 years, and revisions to the plan mustshallbe 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 mustshallbe 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 doesdonot 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, whichthataddresses 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 413formmulticountyregional 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 regionalmulticountyefforts. 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 thisthestate. 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.