HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 1 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to environmental management; creating 2
s. 373.4134, F.S.; providing legislative findings; 3
providing definitions; providing for water quality 4
enhancement areas, enhancement service areas, and 5
enhancement credits; providing requirements for such 6
water quality enhancement area permits, enhancement 7
service areas, and enhancement credits; directing the 8
Department of Environmental Protection and wate r 9
management districts to authorize the sale and use of 10
enhancement credits for specified purposes; providing 11
that the authority of the act is supplemental; 12
directing the department to maintain enhancement 13
credit ledgers and adopt rules; amending s. 403.06 1, 14
F.S.; authorizing the department to enter into 15
agreements and contracts with public and private 16
entities for donations, funds, and payments to 17
expedite the evaluation of environmental resource and 18
dredge and fill permits; providing requirements for 19
such agreements and contracts and permit evaluations; 20
requiring the department to make such agreements and 21
contracts publicly available on its website; providing 22
an appropriation and authorizing full -time equivalent 23
positions; providing an effective date. 24
25
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 2 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Be It Enacted by the Legislature of the State of Florida: 26
27
Section 1. Section 373.4134, Florida Statutes, is created 28
to read: 29
373.4134 Water quality enhancement areas. - 30
(1) LEGISLATIVE FINDINGS AND INTENT. -The Legislature finds 31
that: 32
(a) Water quality will be improved and adverse water 33
quality impacts of activities regulated under this part may be 34
offset by the construction, operation, maintenance, and long -35
term management of water quality enhancement areas that provide 36
offsite compensatory treat ment. 37
(b) An expansion of existing authority for regional 38
treatment to include offsite compensatory treatment in water 39
quality enhancement areas to make enhancement credits available 40
for purchase to offset impacts regulated under this part, is 41
needed. 42
(c) The construction, operation, maintenance, and long -43
term management of water quality enhancement areas under this 44
section will improve the certainty and long -term viability of 45
water quality treatment systems. 46
(d) Water quality enhancement areas are a valuable tool to 47
assist applicants in satisfying the net improvement performance 48
standards under s. 373.414(1)(b)3. to ensure significant 49
reduction of pollutant loadings. 50
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 3 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(e) Water quality enhancement areas that provide water 51
quality enhancement credits to applicants seeking permits under 52
this part and entities seeking to meet an assigned basin 53
management action plan allocation or reasonable assurance plan 54
pursuant to s. 403.067 are considered an appropriate and 55
permittable option. 56
(2) DEFINITIONS.-As used in this section, the term: 57
(a) "Enhancement credit" means a standard unit of measure 58
that represents a quantity of pollutant removed. 59
(b) "Enhancement service area" means the geographic area 60
in which the water quality enhancement area can reasonabl y be 61
expected to offset adverse water quality impacts. 62
(c) "Planning unit" means the total maximum daily load 63
planning unit that is an individual tributary basin or a group 64
of smaller adjacent tributary basins with similar 65
characteristics. 66
(d) "Water quality enhancement area" means a natural 67
system constructed, operated, managed, and maintained under a 68
permit issued under this part for the purpose of providing 69
offsite, compensatory regional treatment within an identified 70
enhancement service area for wh ich enhancement credits may be 71
provided. 72
(e) "Water quality enhancement area permit" means a permit 73
issued for a water quality enhancement area which authorizes the 74
construction, operation, management, and maintenance of a water 75
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 4 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
quality enhancement area and the purchase and sale of 76
enhancement credits. 77
(3) WATER QUALITY ENHANCEMENT AREAS. - 78
(a) An environmental resource permit issued by the 79
department under this part shall authorize the construction, 80
operation, management, and maintenance of a water qu ality 81
enhancement area. Department rules pertaining to environmental 82
resource permits apply to water quality enhancement areas and 83
enhancement credits. 84
(b) A water quality enhancement area must address the 85
contributions of pollutants for those parameters in an 86
enhancement service area that does not meet state water quality 87
standards. 88
(c) A water quality enhancement area must use, create, or 89
improve natural systems in order to improve water quality. 90
(d) A water quality enhancement area may not provide 91
credits to compensate for wetland or other surface water 92
impacts. 93
(e) A governmental entity may use a water quality 94
enhancement area for its own water quality needs. However, a 95
governmental entity may not act as a sponsor to construct, 96
operate, manage, or maintain a water quality enhancement area or 97
market enhancement credits to third parties. 98
(f) A local government may not require a permit or 99
otherwise impose regulations governing the operation of a water 100
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 5 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
quality enhancement area. 101
(4) WATER QUALITY E NHANCEMENT AREA PERMIT. - 102
(a) To obtain a water quality enhancement area permit, the 103
applicant must provide reasonable assurances that the proposed 104
water quality enhancement area will: 105
1. Meet the requirements for issuance of an environmental 106
resource permit. 107
2. Benefit water quality in the enhancement service area. 108
3. Achieve defined performance or success criteria for the 109
reduction of pollutants or other constituents that prevent 110
receiving waters from meeting state water quality standards. 111
4. Ensure long-term pollutant reduction through effective 112
operation and maintenance in perpetuity by designation of a 113
responsible long-term maintenance entity supported by an 114
endowment or other long -term financial assurance sufficient to 115
ensure perpetual operati on and maintenance. 116
5. Demonstrate sufficient legal or equitable interest in 117
the property to ensure access and perpetual protection and 118
management of the land within the water quality enhancement 119
area. 120
6. Provide for permanent preservation of the water quality 121
enhancement area under s. 704.06. 122
(b) The water quality enhancement area permit must provide 123
for the assessment, valuation, and award of credits based on 124
units of pollutants removed. To assist the department in 125
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 6 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
determining enhancement credits, a water quality enhancement 126
area application must include the following information: 127
1. Rainfall data over the longest period of record 128
available collected from the closest site to the proposed water 129
quality enhancement area, preferably within the same dr ainage 130
basin. 131
2. Anticipated average annual water quality and quantity 132
inflows to the proposed water quality enhancement area, based on 133
published local data collected over a period of record that most 134
closely matches the rainfall data under this paragrap h. 135
3. Site-specific conditions affecting the anticipated 136
performance of the proposed water quality enhancement area, 137
including the proposed treatment type and the anticipated 138
associated reduction rates, as demonstrated by the performance 139
of other areas where the treatment type has been established and 140
operating over a minimum of two consecutive wet and dry seasons. 141
4. Proposed data collection sites. An applicant may use 142
data collection stations, approved in advance by the department, 143
in sites that the department deems insufficient to determine 144
flows and local water quality conditions. 145
(c) The department may not require an applicant to 146
complete a project under this chapter as a condition for 147
approval or issuance of a water quality enhancement area permit 148
under this subsection. 149
(d) The issuance of a water quality enhancement area 150
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 7 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
permit under this subsection does not preclude the 151
responsibility of an applicant to obtain other applicable 152
federal, state, and local permits for construction activities 153
associated with the water quality enhancement area. 154
(5) ENHANCEMENT SERVICE AREA. - 155
(a) An enhancement service area shall be based on a basin 156
management action plan or reasonable assurance plan boundary 157
adopted by the department. If the department does not adopt a 158
basin management action plan or reasonable assurance plan 159
boundary, the enhancement service area shall be the planning 160
unit. 161
(b) A water quality enhancement area may only provide 162
enhancement credits in an enhancement service area, except for: 163
1. Projects with adverse impacts located partially within 164
the enhancement service area. 165
2. Linear projects, such as roadways, transmission lines, 166
distribution lines, pipelines, railways, or seaports listed in 167
s. 311.09(1). 168
3. Projects with total adverse impacts of less than one 169
acre in size. 170
(c) Once an enhancement service area has been established 171
by the department, the enhancement service area shall be 172
accepted by all water management districts and local 173
governments. 174
(6) ENHANCEMENT CREDITS. - 175
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 8 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(a) The department or water management district shall 176
authorize the sale and use of enhancement credits to offset 177
adverse water quality impacts of activities regulated under this 178
part or to assist entities seeking to meet an assigned basin 179
management action plan allocation or reasonable assurance plan 180
pursuant to s. 403.067. 181
(b) Water quality improvement projects using natural 182
systems or land use modifications, including, but not limited 183
to, constructed wetlands or minor impoundments that reduce 184
pollutants to a receiving water body may be used by an applicant 185
to generate enhancement credits if approved by the department. 186
(c) The department shall provide for and maintain a ledger 187
that tracks the award, release, and use of enhancement credits. 188
1. The operator of a water quality enhancement area shall 189
notify the department of the amount of enhancement credits sold 190
or used within 30 days after the date the enhancement credit 191
transaction is completed. 192
2. A water management district that authorizes appl icants 193
seeking permits under this part to use enhancement credits to 194
offset water quality impacts must report to the department the 195
amount of enhancement credits used by the applicant. 196
(d) Reductions in pollutant loading required under any 197
state regulatory program are not eligible to be considered as 198
enhancement credits. 199
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 9 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
(e) Enhancement credits may not be used by point source 200
dischargers to satisfy regulatory requirements other than those 201
necessary to obtain an environmental resource permit for 202
construction and operation of the surface water management 203
system of the site. 204
(f) Use of enhancement credits made available by a water 205
quality enhancement area shall be voluntary. 206
(g) Any landowner, discharger, or other responsible person 207
regulated under this part or s. 403.067 that is implementing 208
applicable management strategies specified in an adopted basin 209
management action plan or reasonable assurance plan may not be 210
required by any permit or other enforcement action to use 211
enhancement credits to reduce p ollutant loads to achieve the 212
pollutant reductions established pursuant to s. 403.067. 213
(h) A local government may not deny the use of enhancement 214
credits due to the location of the water quality enhancement 215
area outside the jurisdiction of the local gove rnment. 216
(7) AUTHORITY.-The authority granted to the department 217
under this section is supplemental to the authority granted 218
under s. 403.067(8). 219
(8) RULES.-The department shall adopt rules to implement 220
this section. 221
Section 2. Subsection (22) of sec tion 403.061, Florida 222
Statutes, is amended to read: 223
403.061 Department; powers and duties. —The department 224
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 10 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
shall have the power and the duty to control and prohibit 225
pollution of air and water in accordance with the law and rules 226
adopted and promulgated by it and, for this purpose, to: 227
(22)(a) Advise, consult, cooperate, and enter into 228
agreements and contracts with other agencies of the state, the 229
Federal Government, other states, interstate agencies, groups, 230
political subdivisions, and industries affecte d by the 231
provisions of this act, rules, or policies of the department. 232
However, the secretary of the department shall not enter into 233
any interstate agreement relating to the transport of ozone 234
precursor pollutants, nor modify its rules based upon a 235
recommendation from the Ozone Transport Assessment Group or any 236
other such organization that is not an official subdivision of 237
the United States Environmental Protection Agency but which 238
studies issues related to the transport of ozone precursor 239
pollutants, without prior review and specific legislative 240
approval. 241
(b) The department may enter into agreements and contracts 242
with public or private entities to accept and expend donations, 243
grants of funds, and payments to expedite the evaluation of the 244
entity's application for a permit under s. 373.4131 or s. 245
373.4146. Agreements and contracts under this paragraph must be 246
effective for at least 3 years. Permit evaluations under this 247
paragraph must follow the same permit application evaluation 248
procedures as those for an entity that does not have an 249
HB 965 2022
CODING: Words stricken are deletions; words underlined are additions.
hb0965-00
Page 11 of 11
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
agreement or contract with the department. The department shall 250
ensure that agreements and contracts under this subsection do 251
not substantively or procedurally affect the impartial 252
evaluation of the entity's permit application. Active agreements 253
and contracts under this paragraph must be posted on the 254
department's website. 255
256
The department shall implement such programs in conjunction with 257
its other powers and duties and shall place special emphasis on 258
reducing and eliminating con tamination that presents a threat to 259
humans, animals or plants, or to the environment. 260
Section 3. Effective July 1, 2022, the sum of $2,040,000 261
in recurring funds from the Grants and Donations Trust Fund is 262
appropriated to the Department of Environment al Protection, and 263
24 full-time equivalent positions are authorized, to evaluate 264
applications for permits under ss. 373.4131 and 373.4146, 265
Florida Statutes, for entities that the department has entered 266
into agreements or contracts with under s. 403.061(22) , Florida 267
Statutes. To obtain and retain such positions, the department 268
may increase the maximum rate of basic pay up to 30 percent for 269
each position. 270
Section 4. This act shall take effect July 1, 2022. 271