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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 renewable natural gas; amending s. 2
366.91, F.S.; authorizing a public utility to recover 3
prudently incurred renewable natural gas 4
infrastructure project costs through an appropriate 5
Florida Public Service Commission cost -recovery 6
mechanism; providing that such costs are not subject 7
to further actions except under certain circumstances; 8
specifying eligible renewable natural gas 9
infrastructure projects; requiring that cost recovery 10
for such projects be approved by the commission; 11
providing requirements for the approval determination; 12
prohibiting cost recovery until a facility is placed 13
in service; providing that certain other regulatory 14
accounting rules may apply to such cost recovery; 15
amending s. 373.807, F.S.; revising the required 16
contents of a basin management action plan for an 17
Outstanding Florida Spring to include identification 18
of certain water quality improvement projects; 19
amending s. 403.067, F.S.; revising the required 20
contents of a wastewater treatment plan within a basin 21
management action plan; amending s. 403.7055, F.S.; 22
encouraging counties and municipalities to form 23
regional solutions to certain energy issues; requiring 24
the Department of Environmental Protection to provide 25
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guidelines and technical assistance to such counties 26
and municipalities; amending s. 570.841, F.S.; 27
authorizing the farm -to-fuel initiative to address the 28
production and capture of renewable natural gas; 29
revising the purposes of the department's statewide 30
comprehensive information and education program; 31
reenacting s. 403.0673(2)(e) and (f), F.S., relating 32
to the water quality improvement grant program, to 33
incorporate the amendment made to s. 403.067, F.S., in 34
references thereto; providing an effective date. 35
36
Be It Enacted by the Legislature of the State of Florida: 37
38
Section 1. Subsection (10) is added to section 366.91, 39
Florida Statutes, to read: 40
366.91 Renewable energy. — 41
(10) A public utility ma y recover, through an appropriate 42
cost-recovery mechanism administered by the commission, 43
prudently incurred costs for renewable natural gas 44
infrastructure projects. If the commission determines that such 45
costs were reasonable and that the project will fac ilitate 46
achieving the goals of subsection (1), the commission must deem 47
the project and associated costs prudent for purposes of cost 48
recovery and may not further subject the project to disallowance 49
except for fraud, perjury, or intentional withholding of key 50
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information by the public utility. For purposes of utility cost 51
recovery under this subsection only, the term "renewable natural 52
gas" may include a mixture of natural gas and renewable natural 53
gas. Eligible renewable natural gas projects must be locate d 54
within this state. Types of costs eligible for cost recovery 55
include, but are not limited to, capital investment in projects 56
necessary to prepare, clean, or otherwise produce renewable 57
natural gas for pipeline distribution and usage; capital 58
investment in facilities, including pipelines that are necessary 59
to inject and deliver renewable natural gas and renewable 60
natural gas storage facilities; operation and maintenance 61
expenses associated with any such renewable natural gas 62
infrastructure projects; and an appropriate return on investment 63
consistent with that allowed for other utility plants that 64
provide service to customers. Cost recovery for any renewable 65
natural gas infrastructure project sought pursuant to this 66
subsection must be approved by the commiss ion. 67
(a) In assessing whether cost recovery for a renewable 68
natural gas infrastructure project is appropriate, the 69
commission must consider whether the projected costs for such 70
renewable natural gas infrastructure project are reasonable and 71
consistent with this subsection. 72
(b) Recovery of costs incurred by a public utility for a 73
renewable natural gas project approved for cost recovery under 74
this subsection may not be allowed until such facility is placed 75
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in service. Upon approval of cost recovery by the commission, 76
costs incurred before the facility is placed in service may be 77
deferred on the public utility's books for recovery once the 78
facility is in service. This does not preclude application of 79
any other regulatory accounting rules that are otherwise deemed 80
appropriate, including, but not limited to, normal recovery of 81
costs for construction work in progress. 82
Section 2. Paragraph (b) of subsection (1) and subsection 83
(3) of section 373.807, Florida Statutes, are amended to read: 84
373.807 Protection of water quality in Outstanding Florida 85
Springs.—By July 1, 2016, the department shall initiate 86
assessment, pursuant to s. 403.067(3), of Outstanding Florida 87
Springs or spring systems for which an impairment determination 88
has not been made under the numer ic nutrient standards in effect 89
for spring vents. Assessments must be completed by July 1, 2018. 90
(1) 91
(b) A basin management action plan for an Outstanding 92
Florida Spring must shall be adopted within 2 years after its 93
initiation and must include, at a mi nimum: 94
1. A list of all specific projects and programs identified 95
to implement a nutrient total maximum daily load; 96
2. A list of all specific projects identified in any 97
incorporated onsite sewage treatment and disposal system 98
remediation plan, if appli cable; 99
3. A priority rank for each listed project; 100
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4. For each listed project, a planning level cost estimate 101
and the estimated date of completion; 102
5. The source and amount of financial assistance to be 103
made available by the department, a water management district, 104
or other entity for each listed project; 105
6. An estimate of each listed project's nutrient load 106
reduction; 107
7. Identification of each point source or category of 108
nonpoint sources, including, but not limited to, urban turf 109
fertilizer, sports turf fertilizer, agricultural fertilizer, 110
onsite sewage treatment and disposal systems, wastewater 111
treatment facilities, animal wastes, and stormwater facilities. 112
An estimated allocation of the pollutant lo ad must be provided 113
for each point source or category of nonpoint sources; and 114
8. Identification of water quality improvement projects 115
that can also produce and capture renewable natural gas through 116
the use of anaerobic digestion or other similar treatme nt 117
technologies at wastewater treatment plants, livestock farms, 118
food production facilities, and organic waste management 119
operations; and 120
9. An implementation plan designed with a target to 121
achieve the nutrient total maximum daily load no more than 20 122
years after the adoption of a basin management action plan. 123
124
The department shall develop a schedule establishing 5 -year, 10-125
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year, and 15-year targets for achieving the nutrient total 126
maximum daily load. The schedule shall be used to provide 127
guidance for planning and funding purposes and is exempt from 128
chapter 120. 129
(3) As part of a basin management action plan that 130
includes an Outstanding Florida Spring, the department, relevant 131
local governments, and relevant local public and private 132
wastewater utilities s hall develop an onsite sewage treatment 133
and disposal system remediation plan for a spring if the 134
department determines onsite sewage treatment and disposal 135
systems within a basin management action plan contribute at 136
least 20 percent of nonpoint source nitr ogen pollution or if the 137
department determines remediation is necessary to achieve the 138
total maximum daily load. The plan must identify cost -effective 139
and financially feasible projects necessary to reduce the 140
nutrient impacts from onsite sewage treatment a nd disposal 141
systems and shall be completed and adopted as part of the basin 142
management action plan no later than the first 5 -year milestone 143
required by subparagraph (1)(b)9. subparagraph (1)(b)8. The 144
department is the lead agency in coordinating the prepar ation of 145
and the adoption of the plan. The department shall: 146
(a) Collect and evaluate credible scientific information 147
on the effect of nutrients, particularly forms of nitrogen, on 148
springs and springs systems; and 149
(b) Develop a public education plan to provide area 150
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residents with reliable, understandable information about onsite 151
sewage treatment and disposal systems and springs. 152
153
In addition to the requirements in s. 403.067, the plan must 154
include options for repair, upgrade, replacement, drainfield 155
modification, addition of effective nitrogen reducing features, 156
connection to a central sewerage system, or other action for an 157
onsite sewage treatment and disposal system or group of systems 158
within a basin management action plan that contribute at least 159
20 percent of nonpoint source nitrogen pollution or if the 160
department determines remediation is necessary to achieve a 161
total maximum daily load. For these systems, the department 162
shall include in the plan a priority ranking for each system or 163
group of systems that requires remediation and shall award funds 164
to implement the remediation projects contingent on an 165
appropriation in the General Appropriations Act, which may 166
include all or part of the costs necessary for repair, upgrade, 167
replacement, drainfield modifi cation, addition of effective 168
nitrogen reducing features, initial connection to a central 169
sewerage system, or other action. In awarding funds, the 170
department may consider expected nutrient reduction benefit per 171
unit cost, size and scope of project, relativ e local financial 172
contribution to the project, and the financial impact on 173
property owners and the community. The department may waive 174
matching funding requirements for proposed projects within an 175
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area designated as a rural area of opportunity under s. 176
288.0656. 177
Section 3. Paragraph (a) of subsection (7) of section 178
403.067, Florida Statutes, is amended to read: 179
403.067 Establishment and implementation of total maximum 180
daily loads.— 181
(7) DEVELOPMENT OF BASIN MANAGEMENT PLANS AND 182
IMPLEMENTATION OF TOTA L MAXIMUM DAILY LOADS. — 183
(a) Basin management action plans. — 184
1. In developing and implementing the total maximum daily 185
load for a waterbody, the department, or the department in 186
conjunction with a water management district, may develop a 187
basin management action plan that addresses some or all of the 188
watersheds and basins tributary to the waterbody. Such plan must 189
integrate the appropriate management strategies available to the 190
state through existing water quality protection programs to 191
achieve the total maximum daily loads and may provide for phased 192
implementation of these management strategies to promote timely, 193
cost-effective actions as provided for in s. 403.151. The plan 194
must establish a schedule implementing the management 195
strategies, establish a bas is for evaluating the plan's 196
effectiveness, and identify feasible funding strategies for 197
implementing the plan's management strategies. The management 198
strategies may include regional treatment systems or other 199
public works, when appropriate, and voluntary trading of water 200
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quality credits to achieve the needed pollutant load reductions. 201
2. A basin management action plan must equitably allocate, 202
pursuant to paragraph (6)(b), pollutant reductions to individual 203
basins, as a whole to all basins, or to each ide ntified point 204
source or category of nonpoint sources, as appropriate. For 205
nonpoint sources for which best management practices have been 206
adopted, the initial requirement specified by the plan must be 207
those practices developed pursuant to paragraph (c). Whe n 208
appropriate, the plan may take into account the benefits of 209
pollutant load reduction achieved by point or nonpoint sources 210
that have implemented management strategies to reduce pollutant 211
loads, including best management practices, before the 212
development of the basin management action plan. The plan must 213
also identify the mechanisms that will address potential future 214
increases in pollutant loading. 215
3. The basin management action planning process is 216
intended to involve the broadest possible range of inter ested 217
parties, with the objective of encouraging the greatest amount 218
of cooperation and consensus possible. In developing a basin 219
management action plan, the department shall assure that key 220
stakeholders, including, but not limited to, applicable local 221
governments, water management districts, the Department of 222
Agriculture and Consumer Services, other appropriate state 223
agencies, local soil and water conservation districts, 224
environmental groups, regulated interests, and affected 225
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pollution sources, are invited to participate in the process. 226
The department shall hold at least one public meeting in the 227
vicinity of the watershed or basin to discuss and receive 228
comments during the planning process and shall otherwise 229
encourage public participation to the greatest p racticable 230
extent. Notice of the public meeting must be published in a 231
newspaper of general circulation in each county in which the 232
watershed or basin lies at least 5 days, but not more than 15 233
days, before the public meeting. A basin management action pla n 234
does not supplant or otherwise alter any assessment made under 235
subsection (3) or subsection (4) or any calculation or initial 236
allocation. 237
4. Each new or revised basin management action plan must 238
include all of the following: 239
a. The appropriate manage ment strategies available through 240
existing water quality protection programs to achieve total 241
maximum daily loads, which may provide for phased implementation 242
to promote timely, cost -effective actions as provided for in s. 243
403.151. 244
b. A description of be st management practices adopted by 245
rule. 246
c. For the applicable 5 -year implementation milestone, a 247
list of projects that will achieve the pollutant load reductions 248
needed to meet the total maximum daily load or the load 249
allocations established pursuant to subsection (6). Each project 250
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must include a planning -level cost estimate and an estimated 251
date of completion. 252
d. A list of projects developed pursuant to paragraph (e), 253
if applicable. 254
e. The source and amount of financial assistance to be 255
made available by the department, a water management district, 256
or other entity for each listed project, if applicable. 257
f. A planning-level estimate of each listed project's 258
expected load reduction, if applicable. 259
5. The department shall adopt all or any part of a basin 260
management action plan and any amendment to such plan by 261
secretarial order pursuant to chapter 120 to implement this 262
section. 263
6. The basin management action plan must include 5 -year 264
milestones for implementation and water quality improvement, and 265
an associated water quality monitoring component sufficient to 266
evaluate whether reasonable progress in pollutant load 267
reductions is being achieved over time. An assessment of 268
progress toward these milestones must shall be conducted every 5 269
years, and revisions to the plan must shall be made as 270
appropriate. Any entity with a specific pollutant load reduction 271
requirement established in a basin management action plan shall 272
identify the projects or strategies that such entity will 273
undertake to meet current 5 -year pollution reduction milestones, 274
beginning with the first 5 -year milestone for new basin 275
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management action plans, and submit such projects to the 276
department for inclusion in the appropriate basin management 277
action plan. Each project identified must includ e an estimated 278
amount of nutrient reduction that is reasonably expected to be 279
achieved based on the best scientific information available. 280
Revisions to the basin management action plan must shall be made 281
by the department in cooperation with basin stakehol ders. 282
Revisions to the management strategies required for nonpoint 283
sources must follow the procedures in subparagraph (c)4. Revised 284
basin management action plans must be adopted pursuant to 285
subparagraph 5. 286
7. In accordance with procedures adopted by rule under 287
paragraph (9)(c), basin management action plans, and other 288
pollution control programs under local, state, or federal 289
authority as provided in subsection (4), may allow point or 290
nonpoint sources that w ill achieve greater pollutant reductions 291
than required by an adopted total maximum daily load or 292
wasteload allocation to generate, register, and trade water 293
quality credits for the excess reductions to enable other 294
sources to achieve their allocation; howe ver, the generation of 295
water quality credits does not remove the obligation of a source 296
or activity to meet applicable technology requirements or 297
adopted best management practices. Such plans must allow trading 298
between NPDES permittees, and trading that ma y or may not 299
involve NPDES permittees, where the generation or use of the 300
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credits involve an entity or activity not subject to department 301
water discharge permits whose owner voluntarily elects to obtain 302
department authorization for the generation and sale of credits. 303
8. The department's rule relating to the equitable 304
abatement of pollutants into surface waters does do not apply to 305
water bodies or waterbody segments for which a basin management 306
plan that takes into account future new or expanded activities 307
or discharges has been adopted under this section. 308
9. In order to promote resilient wastewater utilities, if 309
the department identifies domestic wastewater treatment 310
facilities or onsite sewage treatment and disposal systems as 311
contributors of at least 2 0 percent of point source or nonpoint 312
source nutrient pollution or if the department determines 313
remediation is necessary to achieve the total maximum daily 314
load, a basin management action plan for a nutrient total 315
maximum daily load must include the follow ing: 316
a. A wastewater treatment plan developed by each local 317
government, in cooperation with the department, the water 318
management district, and the public and private domestic 319
wastewater treatment facilities within the jurisdiction of the 320
local government, that addresses domestic wastewater. The 321
wastewater treatment plan must: 322
(I) Provide for construction, expansion, or upgrades 323
necessary to achieve the total maximum daily load requirements 324
applicable to the domestic wastewater treatment facility. 325
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(II) Include the permitted capacity in average annual 326
gallons per day for the domestic wastewater treatment facility; 327
the average nutrient concentration and the estimated average 328
nutrient load of the domestic wastewater; a projected timeline 329
of the dates by which the construction of any facility 330
improvements will begin and be completed and the date by which 331
operations of the improved facility will begin; the estimated 332
cost of the improvements; any renewable energy opportunities 333
stemming from the production and capture of renewable natural 334
gas; and the identity of responsible parties. 335
336
The wastewater treatment plan must be adopted as part of the 337
basin management action plan no later than July 1, 2025. A local 338
government that does not have a domestic wastewater tr eatment 339
facility in its jurisdiction is not required to develop a 340
wastewater treatment plan unless there is a demonstrated need to 341
establish a domestic wastewater treatment facility within its 342
jurisdiction to improve water quality necessary to achieve a 343
total maximum daily load. A local government is not responsible 344
for a private domestic wastewater facility's compliance with a 345
basin management action plan unless such facility is operated 346
through a public-private partnership to which the local 347
government is a party. 348
b. An onsite sewage treatment and disposal system 349
remediation plan developed by each local government in 350
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cooperation with the department, the Department of Health, water 351
management districts, and public and private domestic wastewater 352
treatment facilities. 353
(I) The onsite sewage treatment and disposal system 354
remediation plan must identify cost -effective and financially 355
feasible projects necessary to achieve the nutrient load 356
reductions required for onsite sewage treatment and disposal 357
systems. To identify cost-effective and financially feasible 358
projects for remediation of onsite sewage treatment and disposal 359
systems, the local government shall: 360
(A) Include an inventory of onsite sewage treatment and 361
disposal systems based on the best informati on available; 362
(B) Identify onsite sewage treatment and disposal systems 363
that would be eliminated through connection to existing or 364
future central domestic wastewater infrastructure in the 365
jurisdiction or domestic wastewater service area of the local 366
government, that would be replaced with or upgraded to enhanced 367
nutrient-reducing onsite sewage treatment and disposal systems, 368
or that would remain on conventional onsite sewage treatment and 369
disposal systems; 370
(C) Estimate the costs of potential onsite sewa ge 371
treatment and disposal system connections, upgrades, or 372
replacements; and 373
(D) Identify deadlines and interim milestones for the 374
planning, design, and construction of projects. 375
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(II) The department shall adopt the onsite sewage 376
treatment and disposal system remediation plan as part of the 377
basin management action plan no later than July 1, 2025, or as 378
required for Outstanding Florida Springs under s. 373.807. 379
10. The installation of new onsite sewage treatment and 380
disposal systems constructed within a basin management action 381
plan area adopted under this section, a reasonable assurance 382
plan, or a pollution reduction plan is prohibited where 383
connection to a publicly owned or investor -owned sewerage system 384
is available as defined in s. 381.0065(2)(a). On lots of 1 acre 385
or less within a basin management action plan adopted under this 386
section, a reasonable assurance plan, or a pollution reduction 387
plan where a publicly owned or investor -owned sewerage system is 388
not available, the installation of enhanced nutr ient-reducing 389
onsite sewage treatment and disposal systems or other wastewater 390
treatment systems that achieve at least 65 percent nitrogen 391
reduction is required. 392
11. When identifying wastewater projects in a basin 393
management action plan, the department m ay not require the 394
higher cost option if it achieves the same nutrient load 395
reduction as a lower cost option. A regulated entity may choose 396
a different cost option if it complies with the pollutant 397
reduction requirements of an adopted total maximum daily l oad 398
and meets or exceeds the pollution reduction requirement of the 399
original project. 400
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12. Annually, local governments subject to a basin 401
management action plan or located within the basin of a 402
waterbody not attaining nutrient or nutrient -related standards 403
must provide to the department an update on the status of 404
construction of sanitary sewers to serve such areas, in a manner 405
prescribed by the department. 406
Section 4. Section 403.7055, Florida Statutes, is amended 407
to read: 408
403.7055 Methane and renewable natural gas processing and 409
capture.— 410
(1) Each county and municipality is encouraged to form 411
multicounty regional solutions to the processing, capture, and 412
reuse or sale of methane gas and renewable natural gas as 413
defined in s. 366.91(2)(f) from landfills and wastewater 414
treatment facilities. 415
(2) The department shall provide planning guidelines and 416
technical assistance to each county and municipality to develop 417
and implement such regional multicounty efforts. 418
Section 5. Section 570.841, Florida Sta tutes, is amended 419
to read: 420
570.841 Farm-to-fuel initiative.— 421
(1) The department may develop a farm -to-fuel initiative 422
to enhance the market for and promote the production and 423
distribution of renewable energy from Florida -grown crops, 424
agricultural wastes and residues, and other biomass and to 425
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enhance the value of agricultural products or expand 426
agribusiness in this the state. The initiative may address the 427
production and capture of renewable natural gas through the use 428
of digesters and other treatment te chnologies at livestock 429
farms, food production facilities, and other agricultural waste 430
management operations. 431
(2) The department may conduct a statewide comprehensive 432
information and education program aimed at educating the general 433
public and agricultural producers about the benefits of 434
renewable energy and the use and production of alternative 435
fuels. 436
Section 6. For the purpose of incorporating the amendment 437
made by this act to section 403.067, Florida Statutes, in a 438
reference thereto, paragraphs (e) and (f) of subsection (2) of 439
section 403.0673, Florida Statutes, are reenacted to read: 440
403.0673 Water quality improvement grant program. —A grant 441
program is established within the Department of Environmental 442
Protection to address wastewater, stormwater, and agricultural 443
sources of nutrient loading to surface water or groundwater. 444
(2) The department may provide grants for all of the 445
following types of projects that reduce the amount of nutrients 446
entering those waterbodie s identified in subsection (1): 447
(e) Projects identified pursuant to s. 403.067(7)(a) or 448
(e). 449
(f) Projects identified in a wastewater treatment plan or 450
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an onsite sewage treatment and disposal system remediation plan 451
developed pursuant to s. 403.067(7)(a)9.a. and b. 452
Section 7. This act shall take effect July 1, 2024. 453