May 1997
A Summary of Key Legislation Effecting Stormwater Management

FASU's major legislative thrust for 1997 ended with success on the last day of the Session. Amendments to Section 403.1835, FS, were adopted to allow stormwater management systems to be permitted uses of the Sewage Treatment Facilities Revolving Loan Fund. The amendments were a part of a broader bill (HB 1323) to create Florida's state revolving fund for drinking water.

The Sewage Treatment Facilities Fund is authorized by the Clean Water Act. Most of the revenue deposited into the fund has been provided by the federal government. The Act provides that these state revolving funds are intended to assist in the construction of facilities designed to limit surface water pollution. Florida law has historically limited the funds' use to wastewater facilities.

Loans are provided at a rate of 1/2 that of the current market for municipal bonds. For example, if the current market rate for municipal bonds was 6%, loans from the Sewage Treatment Facilities Fund would be set at 3%. Over the life of a 20 year loan, the lower interest rate results in a 25% savings in total project cost.

The amendments adopted by the legislature should be viewed as a first step toward opening up funds for stormwater uses. FASU encountered opposition from DEP and the Governor's Office, and especially Senate Natural Resources Committee staff. Opponents to the measure felt that the stormwater problem was so large that adding it as a permitted use of the Fund would hamper its ability to address wastewater needs.

Because of such opposition, the bill was amended so that the amount of the Fund that can be used for stormwater is limited to no more than 10% per year. Also, other measures in the legislation were removed during the last few days of the process, such as a definition of "stormwater management facilities" and the requirement that local governments have an established stormwater utility in order to be eligible to apply for the loans.

Such measures can be revisited during the next session. Controversial legislation typically takes at least two years to pass. The fact that FASU's measure passed during the first attempt (especially given the fact that relatively few bills passed this year) is surprising.

Since the loan application process for wastewater facilities is now underway for FY 1997-98, loans for stormwater management purposes will not become eligible until FY 1998-99. DEP will use the coming year to develop rules implementing a loan program for stormwater management facilities. The association will monitor the process and will keep you informed of developments as they occur.

Thanks to all members who wrote letters, called Legislators or had their Commissions pass resolutions in support of the legislation!

Water Supply - HB 715
HB 715 embodies the Legislature's major policy initiatives on water supply and Water Management Districts for the 1997 Session. Other provisions were attached to the legislation during the final days of the process.

• Revises the state water use plan. Requires District water management plans to address supply, quality, flood protection and natural systems over a 20 year period of time. Requires plans to include policies on minimum flows and levels. Requires the establishment of regional water supply plans. Requires each WMD to annually submit a priority listing and schedule for the establishment of minimum flows and levels to DEP for approval.
• Revises the appointment process to WMD governing boards so that the next Governor will have greater appointment authority over their membership within a shorter period of time.
• Requires WMDs to submit copies of budgets, expenditure data and audits to the Governor, Speaker of the House and President of the Senate. Limits the ability of WMDs to pay "severance pay". Requires the Legislature's research division to conduct a study of differences in compensation between WMD employees and persons holding similar jobs at DEP and local government.
• Implements the Constitutional ban on net fishing.
• Requires DEP to classify the demineralized concentrate byproduct from reverse osmosis as a potable water byproduct as opposed to industrial wastewater.

Drinking Water Revolving Loan Fund - HB 1323
HB 1323 establishes the Drinking Water Revolving Loan Fund for Florida. Such funds were authorized by the Safe Drinking Water Act, which was passed by Congress last year. Matching funds are provided at a ratio of 5 to 1. The Legislature appropriated $7 million and will draw down approximately $35 million in federal matching funds.

• Authorizes the DEP to make loans to community water systems, non-profit community water systems and public water systems.
• Requires the DEP to develop an Intended Use Plan, which is a statement as to how the department proposes to implement the Safe Drinking Water State Revolving Fund.
• Provides legislative direction stating that the priority use of the drinking water fund shall be given to those areas where saltwater intrusion has occurred.
• Requires operators of water treatment plants or wastewater treatment plants to be licensed by DEP. Establishes procedures or criteria for obtaining such licenses.
• Authorizes cities and counties to jointly establish wastewater or water treatment facilities that provide services outside the boundaries of the cooperating governmental agencies.
• Authorizes the department to make grants from the Sewage Treatment Facilities Revolving Loan Fund to small, financially disadvantaged communities.

Brownfields - SB 1306
Establishes state environmental and re-development policies on "brownfields" - those idle or underutilitized areas where environmental contamination may exist. Provides that local governments designate brownfield areas, based upon criteria in SB 1306. Provides incentives for brownfields to be developed. Establishes cleanup criteria. Limits liability of new property owners within brownfields areas. Directs DEP to award grants to certain EPA-designated brownfield pilot projects.

Dredging Permits - HB 57
Provides exemptions to the requirement to obtain permits to remove limited amounts of certain aquatic plants in freshwater bodies to gain access for boating or swimming purposes. Provides a limited exemption from permitting requirements for the installation of docks and piers owned by local government. Provides that maintenance dredging of previously dredged portions of natural waterbodies is exempt from permitting requirements. Provides criteria under which the exemptions apply.