The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Environment and Natural Resources
BILL: CS/SB 458
INTRODUCER: Environment and Natural Resources Committee and Senator Rodriguez
SUBJECT: Wastewater Grant Program
DATE: March 6, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Carroll Rogers EN Fav/CS
2. AEG
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 458 expands the wastewater grant program to include funding for projects intended to
restore a waterbody or waterbody segment listed as impaired.
II. Present Situation:
Water Quality and Nutrients
Phosphorus and nitrogen are naturally present in water and are essential nutrients for the healthy
growth of plant and animal life.
1
The correct balance of both nutrients is necessary for a healthy
ecosystem; however, excessive nitrogen and phosphorus can cause significant water quality
problems.
2
Phosphorus and nitrogen are derived from natural and human-made sources.
3
Human-made
sources include sewage disposal systems (wastewater treatment facilities and septic systems),
overflows of storm and sanitary sewers (untreated sewage), agricultural production and irrigation
practices, and stormwater runoff.
4
1
U.S. Environmental Protection Agency, The Issue, https://www.epa.gov/nutrientpollution/issue (last visited Feb. 10, 2023).
2
Id.
3
Id.
4
U.S. Environmental Protection Agency (EPA), Sources and Solutions, https://www.epa.gov/nutrientpollution/sources-and-
solutions (last visited Feb 10, 2023).
REVISED: BILL: CS/SB 458 Page 2
Excessive nutrient loads may result in harmful algal blooms, nuisance aquatic weeds, and the
alteration of the natural community of plants and animals.
5
Dense, harmful algal blooms can also
cause human health problems, fish kills, problems for water treatment plants, and impairment of
the aesthetics and taste of waters. Growth of nuisance aquatic weeds tends to increase in nutrient-
enriched waters, which can impact recreational activities.
6
Impaired Waters
Under section 303(d) of the federal Clean Water Act, states must establish water quality
standards for waters within their borders and then develop a list of impaired waters that do not
meet the established water quality standards and a list of threatened waters that may not meet
water quality standards in the following reporting cycle.
7
States must then develop a total
maximum daily load (TMDL)
8
for every pollutant/waterbody combination on the list.
9
Due to limited funds and the wide variety of surface waters in Florida, the Department of
Environmental Protection (DEP) has sorted those waters into 29 major watersheds, or basins, and
further organized them into five basin groups for assessment purposes.
10
DEP completes an
assessment of all basins every two years.
11
If DEP determines that any waters are impaired, the
waterbody or segment must be placed on the verified list of impaired waters and a TMDL must
be calculated for that waterbody or segment.
12
The list is adopted by DEP secretarial order and is
submitted to the U.S. Environmental Protection Agency every two years.
13
A waterbody or
segment may be removed from the list at any time during the TMDL process upon demonstration
that it has attained water quality criteria.
14
If DEP determines that a waterbody is impaired, but
further study is needed to determine the causative pollutants or other factors contributing to
impairment before the waterbody is placed on the verified list, the waterbody or segment will be
placed on the statewide comprehensive study list.
15
Waterbodies on the study list show clear
adverse trends in nutrients or nutrient response variables with a reasonable expectation of
impairment within 10 years, or they do not meet water quality standards or stream nutrient
thresholds.
16
5
EPA, The Issue, https://www.epa.gov/nutrientpollution/issue (last visited Feb. 10, 2023).
6
Id.
7
EPA, Overview of Identifying and Restoring Impaired Waters under Section 303(d) of the CWA,
https://www.epa.gov/tmdl/overview-identifying-and-restoring-impaired-waters-under-section-303d-cwa (last visited Feb. 24,
2023); 40 C.F.R. 130.7.
8
A total maximum daily load is a scientific determination of the maximum amount of a given pollutant that can be absorbed
by a waterbody and still meet water quality standards. DEP, Total Maximum Daily Loads Program,
https://floridadep.gov/dear/water-quality-evaluation-tmdl/content/total-maximum-daily-loads-tmdl-program (last visited Feb.
10, 2023).
9
Id.
10
DEP, Assessment Lists, https://floridadep.gov/dear/watershed-assessment-section/content/assessment-lists (last visited Feb.
24, 2023).
11
Id.
12
Id.; DEP, Verified List Waterbody Ids (WBIDs), https://geodata.dep.state.fl.us/datasets/FDEP::verified-list-waterbody-ids-
wbids/about (last visited Feb. 24, 2023); and s. 403.067(4), F.S.
13
DEP, Assessment Lists; EPA, Overview of Identifying and Restoring Impaired Waters under Section 303(d) of the CWA.
14
Section 403.067(5), F.S.
15
Section 403.067(2), F.S.; ch. 62-303.150, F.A.C.
16
Chapter 62-303.390, F.A.C.; DEP, Assessment Lists. BILL: CS/SB 458 Page 3
Onsite Sewage Treatment and Disposal Systems
Onsite sewage treatment and disposal systems
(OSTDSs), commonly referred to as “septic
systems,” generally consist of two basic parts:
the septic tank and the drainfield.
17
Waste from
toilets, sinks, washing machines, and showers
flows through a pipe into the septic tank, where
anaerobic bacteria break the solids into a liquid
form. The liquid portion of the wastewater flows
into the drainfield, which is generally a series of
perforated pipes or panels surrounded by
lightweight materials such as gravel or
Styrofoam. The drainfield provides a secondary
treatment where aerobic bacteria continue
deactivating the germs. The drainfield also
provides filtration of the wastewater, as gravity
draws the water down through the soil layers.
18
There are an estimated 2.6 million OSTDSs in Florida, providing wastewater disposal for 30
percent of the state’s population.
19
In Florida, development in some areas is dependent on
OSTDSs due to the cost and time it takes to install central sewer systems.
20
For example, in rural
areas and low-density developments, central sewer systems are not cost-effective. Less than one
percent of OSTDSs in Florida are actively managed under operating permits and maintenance
agreements.
21
The remainder of the systems are generally serviced only when they fail, often
leading to costly repairs that could have been avoided with routine maintenance.
22
In a conventional OSTDS, the septic tank does not reduce nitrogen from raw sewage.
Approximately 30-40 percent of the nitrogen levels are reduced in the drainfield of a system that
is installed 24 inches or more from groundwater.
23
This still leaves a significant amount of
17
Florida Department of Health (DOH), Septic System Information and Care, http://columbia.floridahealth.gov/programs-
and-services/environmental-health/onsite-sewage-disposal/septic-information-and-care.html (last visited Feb, 2023); EPA,
Types of Septic Systems, https://www.epa.gov/septic/types-septic-systems (last visited Feb. 10, 2023) (showing the graphic
provided in the analysis).
18
Id.
19
DEP, Onsite Sewage Program, https://floridadep.gov/water/onsite-
sewage#:~:text=Onsite%20sewage%20treatment%20and%20disposal%20systems%20%28OSTDS%29%2C%20commonly,r
epresents%2012%25%20of%20the%20United%20States%E2%80%99%20septic%20systems (last visited Feb. 10, 2023).
20
DOH, Report on Range of Costs to Implement a Mandatory Statewide 5-Year Septic Tank Inspection Program, Executive
Summary (Oct. 1, 2008), available at http://www.floridahealth.gov/environmental-health/onsite-sewage/_documents/costs-
implement-mandatory-statewide-inspection.pdf (last visited Feb. 10, 2023).
21
Id.
22
Id.
23
DOH, Florida Onsite Sewage Nitrogen Reduction Strategies Study, Final Report 2008-2015, 21 (Dec. 2015), available at
http://www.floridahealth.gov/environmental-health/onsite-sewage/research/draftlegreportsm.pdf; see Fla. Admin. Code R.
64E-6.006(2). BILL: CS/SB 458 Page 4
nitrogen to percolate into the groundwater, which makes nitrogen from OSTDSs a potential
contaminant in groundwater.
24
Different types of advanced OSTDSs exist that can remove greater amounts of nitrogen than a
typical septic system (often referred to as “advanced” or “nutrient-reducing” septic systems).
25
DEP publishes on its website approved products and resources on advanced systems.
26
Determining which advanced system is the best option can depend on site-specific conditions.
The owner of a properly functioning OSTDS must connect to a sewer system within one year of
receiving notification that a sewer system is available for connection.
27
Owners of an OSTDS in
need of repair or modification must connect within 90 days of notification from DEP.
28
In 2020, the Clean Waterways Act provided for the transfer of the Onsite Sewage Program from
the Department of Health (DOH) to DEP.
29
The Onsite Sewage Program will be transferred over
a period of five years, and guidelines for the transfer are provided by an interagency agreement.
30
Per the agreement, DEP has the primary powers and duties of the Onsite Sewage Program,
meaning that the county departments of health will implement the OSTDS program under the
direction of DEP instead of DOH.
31
The county departments of health still handle permitting and
inspection of OSTDSs.
32
In the event of an alleged violation of OSTDS laws, county
departments of health will be responsible for conducting an inspection to gather information
regarding the allegations.
33
Wastewater Treatment Facilities
The proper treatment and disposal or reuse of domestic wastewater is an important part of
protecting Florida’s water resources. The majority of Florida’s domestic wastewater is controlled
and treated by centralized treatment facilities regulated by DEP. Florida has approximately 2,000
permitted domestic wastewater treatment facilities.
34
24
University of Florida Institute of Food and Agricultural Sciences (IFAS), Onsite Sewage Treatment and Disposal Systems:
Nitrogen, 3 (Oct. 2020), available at http://edis.ifas.ufl.edu/pdffiles/SS/SS55000.pdf (last visited Feb. 10, 2023).
25
DOH, Nitrogen-Reducing Systems for Areas Affected by the Florida Springs and Aquifer Protection Act (updated May
2021), available at http://www.floridahealth.gov/environmental-health/onsite-sewage/products/_documents/bmap-n-
reducing-tech-18-10-29.pdf.
26
DEP, Onsite Sewage Program, Product Listings and Approval Requirements, https://floridadep.gov/water/onsite-
sewage/content/product-listings-and-approval-requirements (last visited Feb. 10, 2023).
27
Section 381.00655, F.S.
28
Id.
29
DEP, Program Transfer, https://floridadep.gov/water/onsite-sewage/content/program-transfer (last visited Feb. 10, 2023).
30
DOH, DEP, Interagency Agreement between DEP and DOH in Compliance with Florida’s Clean Waterways Act for
Transfer of the Onsite Sewage Program, 5 (June 30, 2021), available at http://www.floridahealth.gov/environmental-
health/onsite-sewage/_documents/interagency-agreement-between-fdoh-fdep-onsite-signed-06302021.pdf (last visited Feb.
10, 2023).
31
Id. at 14.
32
Id. at 11; and DEP, Onsite Sewage Program, https://floridadep.gov/water/onsite-sewage (last visited Feb. 10, 2023).
33
DOH, DEP, Interagency Agreement between DEP and DOH in Compliance with Florida’s Clean Waterways Act for
Transfer of the Onsite Sewage Program at 11.
34
DEP, General Facts and Statistics about Wastewater in Florida, https://floridadep.gov/water/domestic-
wastewater/content/general-facts-and-statistics-about-wastewater-florida (last visited Feb. 10, 2023). BILL: CS/SB 458 Page 5
Chapter 403, F.S., requires that any facility or activity which discharges waste into waters of the
state or which will reasonably be expected to be a source of water pollution must obtain a permit
from DEP.
35
Generally, persons who intend to collect, transmit, treat, dispose, or reuse
wastewater are required to obtain a wastewater permit. A wastewater permit issued by DEP is
required for both operation and certain construction activities associated with domestic or
industrial wastewater facilities or activities. A DEP permit must also be obtained prior to
construction of a domestic wastewater collection and transmission system.
36
Under section 402 of the federal Clean Water Act, any discharge of a pollutant from a point
source to surface waters (i.e., the navigable waters of the United States or beyond) must obtain a
National Pollution Discharge Elimination System (NPDES) permit.
37
NPDES permit
requirements for most wastewater facilities or activities (domestic or industrial) that discharge to
surface waters are incorporated into a state-issued permit, thus giving the permittee one set of
permitting requirements rather than one state and one federal permit.
38
DEP issues operation
permits for a period of five years for facilities regulated under the NPDES program and up to 10
years for other domestic wastewater treatment facilities meeting certain statutory requirements.
39
Florida’s Wastewater Grant Program
The Legislature created the wastewater grant program with the passage of the Clean Waterways
Act in 2020.
40
The legislation authorized DEP to provide grants to governmental entities for
wastewater projects that reduce excess nutrient pollution within a basin management action
plan,
41
alternative restoration plan adopted by final order,
42
or rural area of opportunity.
43
The
program requires at least a 50 percent local match for each grant, although the requirement may
be waived for rural areas of opportunity. Eligible projects include:
Projects to retrofit OSTDSs to upgrade such systems to enhanced nutrient-reducing OSTDSs;
Projects to construct, upgrade, or expand facilities to provide advanced waste treatment;
44
and
35
Section 403.087, F.S.
36
DEP, Wastewater Permitting, https://floridadep.gov/water/domestic-wastewater/content/wastewater-permitting (last visited
Feb. 10, 2023).
37
33 U.S.C. s. 1342.
38
Sections 403.061 and 403.087, F.S.
39
Section 403.087(3), F.S.
40
Chapter 2020-150, Laws of Fla.; s. 403.0673, F.S.
41
Basin management action plans are one of the primary mechanisms DEP uses to achieve TMDLs; they are plans that
address the entire pollution load for a watershed. Section 403.067(7), F.S.
42
An alternative restoration plan is a strategy developed and implemented to quickly address water quality issues to postpone
or prevent a waterbody from being listed on the verified list of impaired waters. There are two types of alternative restoration
plans: reasonable assurance plans and pollutant reduction plans. DEP, FAQs for the Alternative Restoration Plan Webpage,
https://floridadep.gov/dear/alternative-restoration-plans/content/alternative-restoration-plan-webpage-
faqs#:~:text=What%20is%20an%20Alternative%20Restoration%20Plan%3F%20It%20is,being%20on%20the%20Verified%
20List%20of%20Impaired%20Waters (last visited Feb. 28, 2023).
43
Section 403.0673(1), F.S. Rural areas of opportunity are rural communities, or a region composed of rural communities
that have been adversely affected by extraordinary economic events of natural disasters. Florida Department of Economic
Opportunity, Rural Areas of Opportunity, https://floridajobs.org/community-planning-and-development/rural-community-
programs/rural-areas-of-opportunity (last visited Feb. 24, 2023).
44
Advanced waste treatment is defined in s. 403.086(4), F.S. as treatment that has received high level disinfection and that
will provide a reclaimed water product that contains not more on a permitted annual basis than 5 mg/l of biochemical oxygen
demand and suspended solids, 3 mg/l of total nitrogen, and 1 mg/l of total phosphorus. BILL: CS/SB 458 Page 6
Projects to connect OSTDSs to central sewer facilities.
45
DEP coordinates with the water management districts to identify grant recipients in each
district.
46
DEP must consider the estimated reduction in nutrient load per project; project
readiness; the cost-effectiveness of the project; the overall environmental benefit of the project;
the location of the project; the availability of local matching funds; and projected water savings
or quantity improvements associated with the project.
47
Projects that subsidize the connection of
OSTDSs to wastewater treatment facilities are given priority in the following order:
First priority: subsidizing the connection of OSTDSs to existing infrastructure.
Second priority: any expansion of a collection or transmission system that promotes
efficiency by planning the installation of wastewater transmission facilities to be constructed
concurrently with other construction projects occurring within or along a transportation
facility right-of-way.
Third priority: all other connections of OSTDSs to wastewater treatment facilities.
48
DEP is required to submit an annual report identifying the projects funded through the grant
program to the Governor, the President of the Senate, and the Speaker of the House of
Representatives.
49
The wastewater grant program is funded by documentary stamp tax revenues.
50
After required
distributions from documentary stamp tax revenues are disbursed,
51
an amount equaling 5.4175
percent of the remainder is paid into the Water Protection and Sustainability Program Trust Fund
to be used to fund wastewater grants.
52
The Office of Economic and Demographic Research
estimates that the distribution for wastewater grants in fiscal year 2023-2024 will be $134.5
million.
53
Other Funding for Wastewater Projects
DEP helps fund domestic wastewater projects through the Clean Water State Revolving Fund
Loan, the State Small Community Wastewater Construction Grants, and the State Bond Loan
programs.
54
45
Id.
46
Section 403.0673(4), F.S.
47
Section 403.0673(2), F.S.
48
Id.
49
Section 403.0673(5), F.S.
50
Section 201.15(4)(h), F.S. Documentary stamp tax revenues are collected under ch. 201, F.S., which requires an excise tax
to be levied on two classes of documents: deeds and other documents related to real property, which are taxed at the rate of
70 cents per $100; and certificates of indebtedness, promissory notes, wage assignments, and retail charge account
agreements, which are taxed at 35 cents per $100. See ss. 201.02(1)(a) and 201.08(1)(a), F.S.
51
The required distributions are to the Land Acquisition Trust Fund and the service charge representing the estimated pro rata
share of the cost of general government paid from the General Revenue Fund. Section 201.15(4), F.S.
52
Section 201.15(4)(h), F.S.
53
Office of Economic and Demographic Research, Conference Results, (2022) available at
http://edr.state.fl.us/Content/conferences/docstamp/docstampresults.pdf.
54
DEP, DEP Funding for Domestic Wastewater Projects, https://floridadep.gov/water/domestic-wastewater/content/dep-
funding-domestic-wastewater-projects (last visited Feb. 24, 2023). BILL: CS/SB 458 Page 7
The Clean Water State Revolving Fund (CWSRF) program is administered by DEP through the
State Revolving Fund Program. It provides low-interest loans for planning, designing, and
constructing water pollution control facilities.
55
DEP receives requests for funding throughout
the year for wastewater, stormwater, and certain energy and other types of projects.
56
The
information gathered in the request is used to list projects in order of priority for funding at the
beginning of each fiscal year and each quarter thereafter, as funds are available.
57
To date, the
CWSRF program has provided over $4 billion in total loans.
58
The State Small Community Wastewater Construction Grants program is also administered
through the State Revolving Fund Program. This grant program assists small communities and
wastewater authorities in planning, designing, and constructing wastewater management
facilities.
59
A community is eligible if it is a municipality, county, or authority with a total
population of no more than 10,000 and a per capita income less than the state average of
$26,503.
60
Executive Order 23-06
Executive Order 23-06 directs DEP to work with the Legislature to expand the existing
wastewater grant program by broadening project eligibility to address impacts from nonpoint
sources, such as stormwater and agricultural runoff, and address aging wastewater infrastructure
that increases nutrient loading to surface and groundwater.
61
With regard to the wastewater grant
program, the executive order also directs DEP to:
Collaborate with water management districts, local governments, and stakeholders to identify
the most effective water quality improvement projects;
Continue to prioritize grants to local governments for septic-to-sewer conversions and
identify ways to minimize the installation of new septic systems in areas with impaired
waterways; and
Ensure that all wastewater facilities discharging to waterbodies within a basin management
action plan area or discharging to a waterbody not attaining water quality standards upgrade
to advanced wastewater treatment by 2033.
62
III. Effect of Proposed Changes:
Section 1 amends s. 403.0673, F.S., to provide that projects intended to restore a waterbody or
waterbody segment listed as impaired are eligible to receive funding from the wastewater grant
program.
Section 2 provides an effective date of July 1, 2023.
55
Id.
56
DEP, CWSRF Program, https://floridadep.gov/wra/srf/content/cwsrf-program (last visited Feb. 24, 2023).
57
Id.
58
DEP, DEP Funding for Domestic Wastewater Projects.
59
Id.
60
Id.
61
Office of the Governor, Executive Order 23-6, 3 (Jan. 10, 2023), available at https://www.flgov.com/wp-
content/uploads/2023/01/EO-23-06.pdf.
62
Id. at 3-4. BILL: CS/SB 458 Page 8
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The bill would provide grant funding opportunities to local governments for projects
intended to restore a waterbody or waterbody segment listed as impaired. The grants may
pay up to 50 percent of the project costs, although the 50 percent local match may be
waived in rural areas of opportunity. Therefore, this bill may have an indeterminate,
positive fiscal impact on local governments.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends s. 403.0673 of the Florida Statutes. BILL: CS/SB 458 Page 9
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Environment and Natural Resources on March 6, 2023:
Replaces the provision in the underlying bill that authorizes wastewater grant funding
for projects focused on waterbodies on the verified list of impaired waters with a
provision authorizing wastewater grant funding for projects focused on waterbodies
listed as impaired.
Broadens the scope of the title from the wastewater grant program to wastewater
grants.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.