CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 1 of 18 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 mitigation; amending s. 373.403, 2 F.S.; defining the term "private -sector sponsor"; 3 making technical changes; amending s. 373.4134, F.S.; 4 revising legislative findings; defining the term 5 "applicant"; revising the entities to and purposes for 6 which water quality enhancement credits may be sold; 7 requiring the Department of Environmental Protection 8 and water management districts to authorize su ch sale 9 and use; revising construction; amending s. 373.4135, 10 F.S.; revising legislative findings; authorizing local 11 governments to solicit proposals from private -sector 12 sponsors for mitigation banks on certain public lands; 13 providing requirements for agre ements between local 14 governments and private -sector sponsors for such 15 mitigation banks; providing requirements for the 16 department and water management districts in assigning 17 credits to such mitigation banks; providing 18 applicability; providing an exception from rulemaking; 19 amending ss. 330.41, 373.414, and 373.461, F.S.; 20 conforming cross-references; reenacting s. 21 403.9332(1)(a) and (c), F.S., relating to mitigation 22 and enforcement, to incorporate the amendments made to 23 s. 373.4135, F.S., in references theret o; providing an 24 effective date. 25 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 2 of 18 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 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Section 373.403, Florida Statutes, is amended 29 to read: 30 373.403 Definitions. —When appearing in this part or in any 31 rule, regulation, or order ad opted pursuant thereto, the 32 following terms mean: 33 (1)(7) "Alter" means to extend a dam or works beyond 34 maintenance in its original condition, including changes which 35 may increase or diminish the flow or storage of surface water 36 which may affect the safet y of such dam or works. 37 (2) "Appurtenant works" means any artificial improvements 38 to a dam which might affect the safety of such dam or, when 39 employed, might affect the holding capacity of such dam or of 40 the reservoir or impoundment created by such dam. 41 (3)(6) "Closed system" means any reservoir or works 42 located entirely within agricultural lands owned or controlled 43 by the user and which requires water only for the filling, 44 replenishing, and maintaining the water level thereof. 45 (4)(1) "Dam" means any artificial or natural barrier, with 46 appurtenant works, raised to obstruct or impound, or which does 47 obstruct or impound, any of the surface waters of the state. 48 (5)(9) "Drainage basin" means a subdivision of a 49 watershed. 50 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 3 of 18 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 (6)(13) "Dredging" means excava tion, by any means, in 51 surface waters or wetlands, as delineated in s. 373.421(1). The 52 term It also means the excavation, or creation, of a water body 53 which is, or is to be, connected to surface waters or wetlands, 54 as delineated in s. 373.421(1), directly or via an excavated 55 water body or series of water bodies. 56 (7)(18) "Ecological value" means the value of functions 57 performed by uplands, wetlands, and other surface waters to the 58 abundance, diversity, and habitats of fish, wildlife, and listed 59 species. These functions include, but are not limited to, 60 providing cover and refuge; breeding, nesting, denning, and 61 nursery areas; corridors for wildlife movement; food chain 62 support; and natural water storage, natural flow attenuation, 63 and water quality improvemen t, which enhances fish, wildlife, 64 and listed species utilization. 65 (8)(15) "Estuary" means a semienclosed, naturally existing 66 coastal body of water that which has a free connection with the 67 open sea and within which seawater is measurably diluted with 68 fresh water derived from riverine systems. 69 (9)(14) "Filling" means the deposition, by any means, of 70 materials in surface waters or wetlands, as delineated in s. 71 373.421(1). 72 (10)(3) "Impoundment" means any lake, reservoir, pond, or 73 other containment of sur face water occupying a bed or depression 74 in the earth's surface and having a discernible shoreline. 75 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 4 of 18 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 (11)(16) "Lagoon" means a naturally existing coastal zone 76 depression that which is below mean high water and that which 77 has permanent or ephemeral communications with the sea, but that 78 which is protected from the sea by some type of naturally 79 existing barrier. 80 (12)(8) "Maintenance" or "repairs" means remedial work of 81 a nature as may affect the safety of any dam, impoundm ent, 82 reservoir, or appurtenant work or works, but excludes routine 83 custodial maintenance. 84 (13)(19) "Mitigation bank" means a project permitted under 85 s. 373.4136 undertaken to provide for the withdrawal of 86 mitigation credits to offset adverse impacts auth orized by a 87 permit under this part. 88 (14)(20) "Mitigation credit" means a standard unit of 89 measure which represents the increase in ecological value 90 resulting from restoration, enhancement, preservation, or 91 creation activities. 92 (15)(21) "Mitigation service area" means the geographic 93 area within which mitigation credits from a mitigation bank may 94 be used to offset adverse impacts of activities regulated under 95 this part. 96 (16)(22) "Offsite regional mitigation" means mitigation on 97 an area of land off the s ite of an activity permitted under this 98 part, where an applicant proposes to mitigate the adverse 99 impacts of only the applicant's specific activity as a 100 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 5 of 18 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 requirement of the permit, which provides regional ecological 101 value, and which is not a mitigation bank permitted under s. 102 373.4136. 103 (17) "Private-sector sponsor" means an individual or 104 entity that establishes and operates a wetland mitigation bank 105 project and is responsible for compliance with any permit or 106 authorization, including, but not limited to, f unding and 107 undertaking wetland enhancement, restoration or creation 108 activities, and the provision of financial assurances, as well 109 as any required monitoring, reporting, and maintenance of the 110 mitigation bank. 111 (18)(4) "Reservoir" means any artificial or natural 112 holding area which contains or will contain the water impounded 113 by a dam. 114 (19)(17) "Seawall" means a manmade wall or an 115 encroachment, except riprap, which is made to break the force of 116 waves and to protect the shore from erosion. 117 (20)(11) "State water quality standards" means water 118 quality standards adopted pursuant to chapter 403. 119 (21)(10) "Stormwater management system" means a system 120 which is designed and constructed or implemented to control 121 discharges which are necessitated by rainfall events, 122 incorporating methods to collect, convey, store, absorb, 123 inhibit, treat, use, or reuse water to prevent or reduce 124 flooding, overdrainage, environmental degradation, and water 125 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 6 of 18 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 pollution or otherwise affect the quantity and quality of 126 discharges from the system. 127 (22)(12) "Watershed" means the land area that which 128 contributes to the flow of water into a receiving body of water. 129 (23)(5) "Works" means all artificial structures, 130 including, but not limited to, ditches, canals, conduits, 131 channels, culverts, pipes, and other construction that connects 132 to, draws water from, drains water into, or is placed in or 133 across the waters in the state. 134 Section 2. Present paragraphs (a) through (e) of 135 subsection (2) of section 373.4134, Florida Statutes, are 136 redesignated as paragraphs (b) through (f), respectively, a new 137 paragraph (a) is added to that subsection, and paragraphs (b), 138 (d), and (e) of subsection (1), paragraph (b) of subsection (3), 139 and paragraphs (a) and (j) of subsection ( 7) of that section are 140 amended, to read: 141 373.4134 Water quality enhancement areas. — 142 (1) LEGISLATIVE FINDINGS AND INTENT. —The Legislature finds 143 that: 144 (b) An expansion of existing authority for regional 145 treatment to include offsite compensatory treatme nt in water 146 quality enhancement areas to make enhancement credits available 147 for purchase by an applicant or a governmental entity entities 148 to address impacts regulated under this part is needed. 149 (d) Water quality enhancement areas are a valuable tool to 150 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 7 of 18 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 assist an applicant governmental entities in satisfying the net 151 improvement performance standard under s. 373.414(1)(b)3. to 152 ensure significant reductions of pollutant loadings. 153 (e) Water quality enhancement areas that provide water 154 quality enhancement c redits to applicants governmental entities 155 seeking permits under this part and to governmental entities 156 seeking to meet an assigned basin management action plan 157 allocation or reasonable assurance plan under s. 403.067 are 158 considered an appropriate and perm ittable option. 159 (2) DEFINITIONS.—As used in this section, the term: 160 (a) "Applicant" means a governmental entity or private -161 sector entity that wishes to purchase water quality enhancement 162 credits to meet an assigned basin management action plan 163 allocation or reasonable assurance plan or for the purpose of 164 achieving the net improvement performance standard under s. 165 373.414(1)(b)3. 166 (3) WATER QUALITY ENHANCEMENT AREAS. — 167 (b) Water quality enhancement credits may be sold only to 168 applicants governmental entities seeking to meet an assigned 169 basin management action plan allocation or reasonable assurance 170 plan or for the purpose of achieving net improvement performance 171 standards under s. 373.414(1)(b)3. after the governmental entity 172 has provided reasonable assurances have been provided assurance 173 of meeting department rules for the design and construction of 174 all onsite stormwater management as required by law. 175 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 8 of 18 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 (7) ENHANCEMENT CREDITS. — 176 (a) The department or water management district shall 177 authorize the sale and use of enhancement credits to applicants 178 governmental entities to address adverse water quality impacts 179 of activities regulated under this part or to assist 180 governmental entities seeking to meet required nonpoint source 181 contribution reductions assigned in a basin management action 182 plan or reasonable assurance plan under s. 403.067. 183 (j) Notwithstanding any other law, this section does not 184 limit or restrict the authority of the department to deny the 185 use of enhancement credits when the department is not reasonably 186 assured that the use of the credits will not cause or contribute 187 to a violation of water quality standards, even if the project 188 being implemented by the applicant governmental entity is within 189 the enhancement service area. The department may al low the use 190 of enhancement credits if the department receives a request for 191 the use of enhancement credits and determines that such use will 192 not cause or contribute to a violation of water quality 193 standards. 194 Section 3. Subsection (1) of section 373.413 5, Florida 195 Statutes, is amended and subsection (8) is added to that section 196 to read: 197 373.4135 Mitigation banks and offsite regional 198 mitigation.— 199 (1) The Legislature finds that the adverse impacts of 200 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 9 of 18 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 activities regulated under this part may be offset by the 201 creation, maintenance, and use of mitigation banks and offsite 202 regional mitigation. Mitigation banks and offsite regional 203 mitigation can enhance the certainty of mitigation and provide 204 ecological value due to the improved likelihood of environmental 205 success associated with their proper construction, maintenance, 206 and management. Therefore, the department and the water 207 management districts are directed to participate in and 208 encourage the establishment of private and public mitigation 209 banks and offsite re gional mitigation on private and public 210 lands owned by a local government . Mitigation banks and offsite 211 regional mitigation should emphasize the restoration and 212 enhancement of degraded ecosystems and the preservation of 213 uplands and wetlands as intact ecosy stems rather than alteration 214 of landscapes to create wetlands. This is best accomplished 215 through restoration of ecological communities that were 216 historically present. 217 (a) The Legislature intends that the provisions for 218 establishing mitigation banks apply equally to both public and 219 private entities, except that the rules of the department and 220 water management districts may set forth different measures 221 governing financial responsibility, and different measures 222 governing legal interest, needed to ensure the construction and 223 perpetual protection of a mitigation bank. 224 (b) The Legislature recognizes the importance of 225 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 10 of 18 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 mitigation banks as an appropriate and allowable mitigation 226 alternative to permittee -responsible mitigation. However, the 227 Legislature also recogn izes that certain timing and geographical 228 constraints could result in the unavailability of mitigation 229 bank credits for a certain project upon completion of the 230 project's application. If state and federal mitigation credits 231 are not available to offset the adverse impacts of a project, a 232 local government may allow permittee -responsible mitigation 233 consisting of the restoration or enhancement of lands purchased 234 and owned by a local government for conservation purposes, and 235 such mitigation must conform to the p ermitting requirements of 236 s. 373.4136. Except when a local government has allowed a public 237 or private mitigation project , including permittee -responsible 238 mitigation, to be created on land it has purchased for 239 conservation purposes pursuant to this paragrap h, a governmental 240 entity may not create or provide mitigation for a project other 241 than its own unless the governmental entity uses land that was 242 not previously purchased for conservation and unless the 243 governmental entity provides the same financial assura nces as 244 required for mitigation banks permitted under s. 373.4136. This 245 paragraph does not apply to: 246 1. Mitigation banks permitted before December 31, 2011, 247 under s. 373.4136; 248 2. Offsite regional mitigation areas established before 249 December 31, 2011, u nder subsection (6) or, when credits are not 250 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 11 of 18 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 available at a mitigation bank permitted under s. 373.4136, 251 mitigation areas created by a local government which were 252 awarded mitigation credits pursuant to the uniform mitigation 253 assessment method as provided i n chapter 62-345, Florida 254 Administrative Code, under a permit issued before December 31, 255 2011; 256 3. Mitigation for transportation projects under ss. 257 373.4137 and 373.4139; 258 4. Mitigation for impacts from mining activities under s. 259 373.41492; 260 5. Mitigation provided for single -family lots or 261 homeowners under subsection (7); 262 6. Entities authorized in chapter 98 -492, Laws of Florida; 263 7. Mitigation provided for electric utility impacts 264 certified under part II of chapter 403; or 265 8. Mitigation provided on sovereign submerged lands under 266 subsection (6). 267 (c) It is the further intent of the Legislature that 268 mitigation banks and offsite regional mitigation be considered 269 appropriate and a permittable mitigation option under the 270 conditions specified by the rul es of the department and water 271 management districts. 272 (d) Offsite mitigation, including offsite regional 273 mitigation, may be located outside the regional watershed in 274 which the adverse impacts of an activity regulated under this 275 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 12 of 18 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 part are located, if such a dverse impacts are offset by the 276 offsite mitigation. 277 (e) The department or water management district may allow 278 the use of a mitigation bank or offsite regional mitigation 279 alone or in combination with other forms of mitigation to offset 280 adverse impacts of activities regulated under this part. 281 (f) When an applicant seeking for a permit under the 282 provisions of this part other than this section and s. 373.4136 283 submits more than one mitigation proposal to the department or a 284 water management district, the de partment or water management 285 district shall, in evaluating each proposal, ensure that such 286 proposal adequately offsets the adverse impacts. 287 (8) A local government may, through a public procurement 288 process, solicit proposals from private -sector sponsors for a 289 mitigation bank on public lands purchased for conservation 290 purposes. If such a mitigation bank is to be established and 291 operated on public land, the local government and private -sector 292 sponsor must enter into an agreement requiring the private -293 sector sponsor to establish and operate the mitigation bank to 294 conform to the permitting requirements of s. 373.4136. 295 (a) The agreement must require the private -sector sponsor 296 to pay a usage fee to the local government which reflects the 297 market value of the pub lic land, as determined by a competitive 298 process in accordance with state law or such other method of 299 assuring that the cost of the use of the public land is fully 300 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 13 of 18 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 accounted for in the pricing of mitigation credits. 301 (b) In determining the number of mitig ation bank credits 302 assigned to the mitigation bank, the department or water 303 management district shall reflect the conservation status of the 304 land in the location factor set forth in the uniform mitigation 305 assessment method. 306 (c) This subsection applies to drainage basins or 307 corresponding hydrologic units if the private -sector sponsor 308 demonstrates to the department or water management district that 309 in-kind credits are not available. 310 (d) Rulemaking is not required to implement this 311 subsection. 312 Section 4. Paragraph (a) of subsection (2) of section 313 330.41, Florida Statutes, is amended to read: 314 330.41 Unmanned Aircraft Systems Act. — 315 (2) DEFINITIONS.—As used in this act, the term: 316 (a) "Critical infrastructure facility" means any of the 317 following, if completely enclosed by a fence or other physical 318 barrier that is obviously designed to exclude intruders, or if 319 clearly marked with a sign or signs which indicate that entry is 320 forbidden and which are posted on the property in a manner 321 reasonably likely to come to the attention of intruders: 322 1. A power generation or transmission facility, 323 substation, switching station, or electrical control center. 324 2. A chemical or rubber manufacturing or storage facility. 325 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 14 of 18 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 3. A water intake structure, water treatment f acility, 326 wastewater treatment plant, or pump station. 327 4. A mining facility. 328 5. A natural gas or compressed gas compressor station, 329 storage facility, or natural gas or compressed gas pipeline. 330 6. A liquid natural gas or propane gas terminal or storage 331 facility. 332 7. Any portion of an aboveground oil or gas pipeline. 333 8. A refinery. 334 9. A gas processing plant, including a plant used in the 335 processing, treatment, or fractionation of natural gas. 336 10. A wireless communications facility, including the 337 tower, antennae, support structures, and all associated ground -338 based equipment. 339 11. A seaport as listed in s. 311.09(1), which need not be 340 completely enclosed by a fence or other physical barrier and 341 need not be marked with a sign or signs indicating tha t entry is 342 forbidden. 343 12. An inland port or other facility or group of 344 facilities serving as a point of intermodal transfer of freight 345 in a specific area physically separated from a seaport. 346 13. An airport as defined in s. 330.27. 347 14. A spaceport ter ritory as defined in s. 331.303(18). 348 15. A military installation as defined in 10 U.S.C. s. 349 2801(c)(4) and an armory as defined in s. 250.01. 350 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 15 of 18 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 16. A dam as defined in s. 373.403 s. 373.403(1) or other 351 structures, such as locks, floodgates, or dikes, whi ch are 352 designed to maintain or control the level of navigable 353 waterways. 354 17. A state correctional institution as defined in s. 355 944.02 or a private correctional facility authorized under 356 chapter 957. 357 18. A secure detention center or facility as defined in s. 358 985.03, or a nonsecure residential facility, a high -risk 359 residential facility, or a maximum -risk residential facility as 360 those terms are described in s. 985.03(44). 361 19. A county detention facility as defined in s. 951.23. 362 20. A critical infrastru cture facility as defined in s. 363 692.201. 364 Section 5. Paragraph (a) of subsection (8) of section 365 373.414, Florida Statutes, is amended to read: 366 373.414 Additional criteria for activities in surface 367 waters and wetlands. — 368 (8)(a) The governing board or the department, in deciding 369 whether to grant or deny a permit for an activity regulated 370 under this part shall consider the cumulative impacts upon 371 surface water and wetlands, as delineated in s. 373.421(1), 372 within the same drainage basin as defined in s. 373.403 s. 373 373.403(9), of: 374 1. The activity for which the permit is sought. 375 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 16 of 18 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 2. Projects which are existing or activities regulated 376 under this part which are under construction or projects for 377 which permits or determinations pursuant to s. 373.421 or s. 378 403.914 have been sought. 379 3. Activities which are under review, approved, or vested 380 pursuant to s. 380.06, or other activities regulated under this 381 part which may reasonably be expected to be located within 382 surface waters or wetlands, as delineated in s. 373.421(1), in 383 the same drainage basin as defined in s. 373.403 s. 373.403(9), 384 based upon the comprehensive plans, adopted pursuant to chapter 385 163, of the local governments having jurisdiction over the 386 activities, or applicable land use restrictions and re gulations. 387 Section 6. Paragraph (c) of subsection (2) of section 388 373.461, Florida Statutes, is amended to read: 389 373.461 Lake Apopka improvement and management. — 390 (2) DEFINITIONS.—As used in this section: 391 (c) "Stormwater management system" has the meaning set 392 forth in s. 373.403 s. 373.403(10). 393 Section 7. For the purpose of incorporating the amendment 394 made by this act to section 373.4135, Florida Statutes, in 395 references thereto, paragraphs (a) and (c) of subsection (1) of 396 section 403.9332, Flori da Statutes, are reenacted to read: 397 403.9332 Mitigation and enforcement. — 398 (1)(a) Any area in which 5 percent or more of the trimmed 399 mangrove trees have been trimmed below 6 feet in height, except 400 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 17 of 18 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 as provided in s. 403.9326(1)(c), (d), (f), (g), and (h) , 401 destroyed, defoliated, or removed as a result of trimming 402 conducted under s. 403.9326 or s. 403.9327 must be restored or 403 mitigated. Restoration must be accomplished by replanting 404 mangroves, in the same location and of the same species as each 405 mangrove destroyed, defoliated, removed, or trimmed, to achieve 406 within 5 years a canopy area equivalent to the area destroyed, 407 removed, defoliated, or trimmed; or mitigation must be 408 accomplished by replanting offsite, in areas suitable for 409 mangrove growth, mangroves to achieve within 5 years a canopy 410 area equivalent to the area destroyed, removed, defoliated, or 411 trimmed. Where all or a portion of the restoration or mitigation 412 is not practicable, as determined by the department or delegated 413 local government, the impact s resulting from the destruction, 414 defoliation, removal, or trimming of the mangroves must be 415 offset by donating a sufficient amount of money to offset the 416 impacts, which must be used for the restoration, enhancement, 417 creation, or preservation of mangrove w etlands within a 418 restoration, enhancement, creation, or preservation project 419 approved by the department or delegated local government; or by 420 purchasing credits from a mitigation bank created under s. 421 373.4135 at a mitigation ratio of 2 -to-1 credits to affected 422 area. The donation must be equivalent to the cost, as verified 423 by the department or delegated local government, of creating 424 mangrove wetlands at a 2 -to-1, created versus affected ratio, 425 CS/HB 1073 2024 CODING: Words stricken are deletions; words underlined are additions. hb1073-01-c1 Page 18 of 18 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 based on canopy area. The donation may not be less than $4 per 426 square foot of created wetland area. 427 (c) If mangroves are to be trimmed or altered under a 428 permit issued under s. 403.9328, the department or delegated 429 local government may require mitigation. The department or 430 delegated local government shall establish re asonable mitigation 431 requirements that must include, as an option, the use of 432 mitigation banks created under s. 373.4135, where appropriate. 433 The department's mitigation requirements must ensure that 434 payments received as mitigation are sufficient to offset i mpacts 435 and are used for mangrove creation, preservation, protection, or 436 enhancement. 437 Section 8. This act shall take effect July 1, 2024. 438