HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 1 of 9 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 enhancement and mitigation credits; 2 amending s. 373.403, F.S.; defining the term "project 3 sponsor"; amending s. 373.4134, F.S.; revising 4 legislative findings; revising provisions for the sale 5 and use of water quality enhancement credits; amending 6 s. 373.4135, F.S.; revising legislative findings and 7 intent; requiring governmental entities to consider 8 unsolicited proposals from private entiti es for 9 mitigation bank projects on public lands; authorizing 10 governmental entities to solicit such proposals; 11 providing requirements for such mitigation banks; 12 requiring the Department of Environmental Protection 13 and water management districts to consider certain 14 information in determining credits for such mitigation 15 banks; providing applicability; providing an effective 16 date. 17 18 Be It Enacted by the Legislature of the State of Florida: 19 20 Section 1. Subsection (23) is added to section 373.403, 21 Florida Statutes, to read: 22 373.403 Definitions. —When appearing in this part or in any 23 rule, regulation, or order adopted pursuant thereto, the 24 following terms mean: 25 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 2 of 9 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 (23) "Project sponsor" means a private entity that has 26 entered into an agreement with a governm ental entity to 27 establish and operate a mitigation bank pursuant to s. 28 373.4135(8). 29 Section 2. Paragraphs (b), (d), and (e) of subsection (1), 30 paragraph (b) of subsection (3), and paragraphs (a) and (j) of 31 subsection (7) of section 373.4134, Florida St atutes, are 32 amended to read: 33 373.4134 Water quality enhancement areas. — 34 (1) LEGISLATIVE FINDINGS AND INTENT. —The Legislature finds 35 that: 36 (b) An expansion of existing authority for regional 37 treatment to include offsite compensatory treatment in water 38 quality enhancement areas to make enhancement credits available 39 for purchase by governmental entities or applicants to address 40 impacts regulated under this part is needed. 41 (d) Water quality enhancement areas are a valuable tool to 42 assist applicants governmental entities in satisfying the net 43 improvement performance standard under s. 373.414(1)(b)3. to 44 ensure significant reductions of pollutant loadings. 45 (e) Water quality enhancement areas that provide water 46 quality enhancement credits to applicants governmental entities 47 seeking permits under this part and governmental entities 48 seeking to meet an assigned basin management action plan 49 allocation or reasonable assurance plan under s. 403.067 are 50 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 3 of 9 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 considered an appropriate and permittable option. 51 (3) WATER QUALITY ENHANCEMENT AREAS. — 52 (b) Water quality enhancement credits may be sold only to 53 governmental entities seeking to meet an assigned basin 54 management action plan allocation or reasonable assurance plan 55 or to applicants for the purpose of achieving the net 56 improvement performance standard under s. 373.414(1)(b)3. after 57 the governmental entity has provided reasonable assurances have 58 been provided assurance of meeting department rules for design 59 and construction of all onsite stormwater management as required 60 by chapter 62-330, Florida Administrative Code . 61 (7) ENHANCEMENT CREDITS. — 62 (a) The department or water management district shall 63 authorize the sale and use of enhancement credits to applicants 64 governmental entities to address adverse water quality impacts 65 of activities regulated under this part or to assist 66 governmental entities seeking to meet required nonpoint source 67 contribution reductions assigned in a basin management action 68 plan or reasonable assurance plan un der s. 403.067. 69 (j) Notwithstanding any other law, this section does not 70 limit or restrict the authority of the department to deny the 71 use of enhancement credits when the department is not reasonably 72 assured that the use of the credits will not cause or contribute 73 to a violation of water quality standards, even if the project 74 being implemented by the governmental entity or applicant is 75 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 4 of 9 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 within the enhancement service area. The department may allow 76 the use of enhancement credits if the department receives a 77 request for the use of enhancement credits and determines that 78 such use will not cause or contribute to a violation of water 79 quality standards. 80 Section 3. Subsection (1) of section 373.4135, Florida 81 Statutes, is amended and subsection (8) is added to that section 82 to read: 83 373.4135 Mitigation banks and offsite regional 84 mitigation.— 85 (1) The Legislature finds that the adverse impacts of 86 activities regulated under this part may be offset by the 87 creation, maintenance, and use of mitigation banks and off site 88 regional mitigation. Mitigation banks and offsite regional 89 mitigation can enhance the certainty of mitigation and provide 90 ecological value due to the improved likelihood of environmental 91 success associated with their proper construction, maintenance, 92 and management. Therefore, the department and the water 93 management districts are directed to participate in and 94 encourage the establishment of private and public mitigation 95 banks and offsite regional mitigation on public and private 96 lands. Mitigation banks and offsite regional mitigation should 97 emphasize the restoration and enhancement of degraded ecosystems 98 and the preservation of uplands and wetlands as intact 99 ecosystems rather than alteration of landscapes to create 100 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 5 of 9 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 wetlands. This is best accomplished th rough restoration of 101 ecological communities that were historically present. 102 (a) The Legislature intends that the provisions for 103 establishing mitigation banks apply equally to both public and 104 private entities, except that the rules of the department and 105 water management districts may set forth different measures 106 governing financial responsibility, and different measures 107 governing legal interest, needed to ensure the construction and 108 perpetual protection of a mitigation bank. 109 (b) The Legislature recognize s the importance of 110 mitigation banks as an appropriate and allowable mitigation 111 alternative to permittee -responsible mitigation. However, the 112 Legislature also recognizes that certain timing and geographical 113 constraints could result in the unavailability of mitigation 114 bank credits for a certain project upon completion of the 115 project's application. If state and federal mitigation credits 116 are not available to offset the adverse impacts of a project, a 117 local government may allow permittee -responsible mitigation 118 consisting of the restoration or enhancement of lands purchased 119 and owned by a local government for conservation purposes, and 120 such mitigation must conform to the permitting requirements of 121 s. 373.4136. Except when a local government has allowed a public 122 or private permittee-responsible mitigation project to be 123 created on land it has purchased for conservation purposes 124 pursuant to this paragraph, a governmental entity may not create 125 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 6 of 9 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 or provide mitigation for a project other than its own unless 126 the governmental entity uses land that was not previously 127 purchased for conservation and unless the governmental entity 128 provides the same financial assurances as required for 129 mitigation banks permitted under s. 373.4136. This paragraph 130 does not apply to: 131 1. Mitigation banks permitted before December 31, 2011, 132 under s. 373.4136; 133 2. Offsite regional mitigation areas established before 134 December 31, 2011, under subsection (6) or, when credits are not 135 available at a mitigation bank permitted under s. 373.4136, 136 mitigation areas created by a local government which were 137 awarded mitigation credits pursuant to the uniform mitigation 138 assessment method as provided in chapter 62 -345, Florida 139 Administrative Code, under a permit issued before December 31, 140 2011; 141 3. Mitigation for transportation projects under ss. 142 373.4137 and 373.4139; 143 4. Mitigation for impacts from mining activities under s. 144 373.41492; 145 5. Mitigation provided for single -family lots or 146 homeowners under subsection (7); 147 6. Entities authorized in chapter 98 -492, Laws of Florida; 148 7. Mitigation provided for electric utility impacts 149 certified under part II of chapter 403; or 150 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 7 of 9 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 8. Mitigation provided on sovereign submerged lands under 151 subsection (6). 152 (c) It is the further intent of the Legislature that 153 mitigation banks and offsite regional mitigation be considered 154 appropriate and a permittable mitigation option under the 155 conditions specified by the rules of the department and water 156 management districts. 157 (d) Offsite mitigation, including offsite regional 158 mitigation, may be located outside the regional watershed in 159 which the adverse impacts of an activity regulated under this 160 part are located, if such adverse impacts are offset by the 161 offsite mitigation. 162 (e) The department or water management district may allow 163 the use of a mitigation bank or offsite regional mitigation 164 alone or in combination with other forms of mitigation to offset 165 adverse impacts of activities regulated under this part. 166 (f) When an applicant for a permit under the provisions of 167 this part other than this section and s. 373.4136 submits more 168 than one mitigation proposal to the department or a water 169 management district, the department or water management district 170 shall, in evaluating each proposal, ensure that such proposal 171 adequately offsets the adverse impacts. 172 (8) A governmental entity must consider unsolicited 173 proposals or may solicit proposals from private entities for 174 mitigation bank projects on public lands pursuant to the process 175 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 8 of 9 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 set forth in s. 255.065 or other established public procur ement 176 process. 177 (a) For a mitigation bank established and operated by a 178 private entity on public land, the governmental entity and 179 private entity shall enter into an agreement requiring the 180 private entity to: 181 1. Serve as the project sponsor. 182 2. Comply with the permitting requirements of s. 373.4136. 183 3. Comply with any permits or authorizations for all 184 mitigation bank functions, including, but not limited to, 185 funding for wetland creation, enhancement, or restoration 186 activities, financial assurances, a nd any required monitoring, 187 reporting, and maintenance. 188 4. Pay a usage fee to the governmental entity that 189 reflects the market value of the public land as determined by a 190 competitive process pursuant to state law or other method of 191 assurance that fully a ccounts for the cost of using the public 192 land in the pricing of mitigation credits. 193 (b) In determining the number of mitigation bank credits 194 assigned to the mitigation bank, the department or water 195 management district shall consider the conservation stat us of 196 the public land in the location factor pursuant to the uniform 197 mitigation assessment method. 198 (c) This subsection applies to drainage basins or 199 corresponding hydrologic units when the applicant demonstrates 200 HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-00 Page 9 of 9 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 to the department or water management dist rict that state or 201 federal in-kind mitigation credits are not available. 202 Section 4. This act shall take effect July 1, 2024. 203