THE BILL ITSELF
CS/CS/HB 1457
Stormwater Treatment
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A bill to be entitled
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An act relating to stormwater treatment; amending s.
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311.106, F.S.; prohibiting certain stormwater
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treatment and net improvement activities; prohibiting
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certain water quality enhancement areas from conveying
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enhancement credits to provide stormwater treatment or
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achieve net improvement; amending s. 373.403, F.S.;
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defining terms; amending s. 373.413, F.S.; defining
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the term "regional stormwater management system";
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requiring that the Department of Environmental
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Protection or a water management district require an
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applicant to provide certain documentation of adequate
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financial responsibility in order to meet certain
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requirements; providing requirements for such
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financial responsibility; providing construction;
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requiring an environmental resource permit authorizing
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a regional stormwater management system to establish
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and include a specified graphic depiction; authorizing
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certain environmental resource permit applicants to
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purchase and use pollution reduction allocations from
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a regional stormwater management system to meet
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certain performance criteria; requiring the department
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or water management district to use a specified
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identifier to establish the drainage area; providing
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an exception; amending s. 373.4134, F.S.; revising
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legislative findings; deleting the definition of the
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term "enhancement credit"; authorizing water quality
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enhancement credits to be used by governmental
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entities to meet environmental resource permit
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stormwater treatment performance standards or achieve
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net improvement, pursuant to specified provisions;
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providing that the use of enhancement credits from a
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water quality enhancement area constitutes
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compensating stormwater treatment under the
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environmental resource permitting program; requiring
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the boundaries of the enhancement service area to
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include a certain type of sub-basin; prohibiting the
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term "credit" from being used to refer to pollutant
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reduction under certain circumstances; requiring the
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department to adopt rules by a specified date;
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requiring the department to take certain action
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pending the adoption of certain rules; requiring the
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department to issue a provisional permit under certain
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circumstances; authorizing enhancement credits to be
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used from certain water quality enhancement areas;
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providing construction; authorizing the department to
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modify permits after the adoption of rules; requiring
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the department and water management districts to
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recognize any enhancement credit used from a water
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quality enhancement area established pursuant to a
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provisional permit; amending s. 373.414, F.S.;
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clarifying the types of mitigation measures for
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compensating stormwater treatment which the department
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or a water management district governing board must
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consider under certain circumstances; making technical
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changes; reenacting s. 373.4136(6)(d), F.S., relating
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to establishment and operation of mitigation banks, to
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incorporate the amendment made to s. 373.414, F.S., in
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a reference thereto; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 311.106, Florida Statutes, is amended
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to read:
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311.106 Seaport stormwater permitting and mitigation.—
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(1) A seaport listed in s. 403.021(9)(b) is authorized to
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provide for onsite or offsite stormwater treatment for water
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quality impacts caused by a proposed port activity that requires
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a permit and that causes or contributes to pollution from
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stormwater runoff. Offsite stormwater treatment may occur
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outside of the established boundaries of the port, but must be
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within the same drainage basin in which the port activity
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occurs. A port offsite stormwater treatment project must be
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constructed and maintained by the seaport or by the seaport in
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conjunction with an adjacent local government. In order to limit
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stormwater treatment from individual parcels within a port, a
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seaport may provide for a regional stormwater treatment facility
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that must be constructed and maintained by the seaport or by the
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seaport in conjunction with an adjacent local government.
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(2) For a proposed port activity with water quality
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impacts that causes or contributes to pollution from stormwater
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runoff from a seaport not listed in s. 403.021(9)(b), and not
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including ports in Citrus or Putnam Counties, a regional
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stormwater management system, as defined in s. 373.413(7)(a),
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operated by a non-local governmental entity independently or
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under contract with a seaport or local government, may not
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provide stormwater treatment or achieve net improvement under s.
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373.414(1)(b)3. For a proposed port activity with water quality
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impacts that causes or contributes to pollution from stormwater
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runoff from a seaport not listed in s. 403.021(9)(b), and not
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including ports in Citrus or Putnam Counties, a water quality
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enhancement area as defined in s. 373.4134 and operated by a
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non-local governmental entity independently or under contract
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with a seaport or local government may not convey enhancement
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credits to provide stormwater treatment or achieve net
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improvement under s. 373.414(1)(b)3.
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Section 2. Subsections (23), (24), and (25) are added to
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section 373.403, Florida Statutes, to read:
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373.403 Definitions.—When appearing in this part or in any
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rule, regulation, or order adopted pursuant thereto, the
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following terms mean:
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(23) "Compensating stormwater treatment" means a method of
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stormwater treatment for discharges from multiple parcels.
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(24) "Enhancement credit" means a standard unit of measure
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that represents a quantity of pollutant removed by a water
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quality enhancement area.
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(25) "Pollutant reduction allocation" means a standard
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unit of measure that represents a quantity of pollutant removed
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by a regional stormwater management system for purposes of
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providing compensating stormwater treatment under the
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environmental resource permitting program.
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Section 3. Subsection (7) is added to section 373.413, Florida Statutes, to read:
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373.413 Permits for construction or alteration.—
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(7) REGIONAL STORMWATER MANAGEMENT SYSTEMS.—
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(a) A "regional stormwater management system" is a method
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of compensating stormwater treatment that creates pollution
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reduction allocations and is designed, constructed, operated,
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and maintained to collect, convey, store, absorb, inhibit,
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treat, or harvest stormwater to prevent or reduce flooding,
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overdrainage, environmental degradation and water pollution or
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otherwise affect the quantity and quality of discharges within
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the drainage area served by the regional system which is the
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land or development that is served by or contributes stormwater
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to the regional system.
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(b) As part of meeting the requirement to demonstrate that
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an applicant for an environmental resource permit for a regional
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stormwater management system has the financial, legal, and
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administrative capability of ensuring such regional stormwater
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management system will be undertaken according to the terms and
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conditions of an issued permit, the department or a water
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management district shall require such applicant to provide
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documentation of adequate financial responsibility. This
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financial responsibility may consist of performance bonds,
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letters of credit, insurance policies, trust agreements, or
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similar, ensuring completion of construction; the amount of
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which shall be based on cost estimates of completing the
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construction; and an endowment or other long-term financial
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assurance mechanism sufficient to ensure operation and
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maintenance for the entire period the regional stormwater
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management system is anticipated to be relied upon to provide
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stormwater treatment, attenuation, or regulatory pollutant load
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reduction allocations, the amount of which shall be based on
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cost estimates of such long-term operation and maintenance. The
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cost estimates and associated financial responsibility
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mechanisms shall be updated every 5 years to reflect current
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costs. This section shall not be construed to impose additional
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financial responsibility requirements on stormwater management
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systems that are not regional stormwater management systems.
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(c) An environmental resource permit authorizing a
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regional stormwater management system shall establish and
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include a graphic depicting the drainage area to be served by
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such system. Environmental resource permit applicants located
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within the drainage area may purchase and use pollution
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reduction allocations from a regional stormwater management
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system to meet stormwater treatment performance criteria. The
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department or water management district shall use Hydrologic
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Unit Code 12 (HUC 12) sub-basin as set forth by the United
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States Geological Survey to establish the drainage area, unless
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the regional stormwater management system applicant provides
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justification demonstrating the proposed off-site area outside
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of the HUC 12 would provide the same degree of compensating
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treatment for a common downstream receiving waterbody without
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causing or contributing to any localized adverse impact to any
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downstream waters, through modeling, other evaluations, or a
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combination thereof.
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Section 4. Present paragraphs (d) through (g) of
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subsection (3) of section 373.4134, Florida Statutes, are
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redesignated as paragraphs (e) through (h), respectively, a new
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paragraph (d) is added to that subsection, and paragraph (e) of
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subsection (1), paragraph (b) of subsection (2), paragraph (b)
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of subsection (3), subsection (5), paragraph (e) of subsection
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(7), and subsection (9) of that section are amended, to read:
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373.4134 Water quality enhancement areas.—
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(1) LEGISLATIVE FINDINGS AND INTENT.— The Legislature
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finds that:
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(e) Water quality enhancement areas that provide water
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quality enhancement credits to applicants seeking permits under
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ss. 373.403-373.443 and to governmental entities seeking to meet
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an assigned basin management action plan allocation or
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reasonable assurance plan under s. 403.067 are considered an
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appropriate and permittable option. The use of an enhancement
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credit as specified herein transfers the legal responsibility
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for complying with the applicable regulatory water quality
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treatment requirement from the purchaser and user of such
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enhancement credit to the generator of such enhancement credit.
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(2) DEFINITIONS.—As used in this section, the term:
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(b) "Enhancement credit" means a standard unit of measure
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that represents a quantity of pollutant removed.
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(3) WATER QUALITY ENHANCEMENT AREAS.—
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(b) Water quality enhancement credits may be sold to and
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used by governmental entities seeking to meet an assigned basin
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management action plan allocation or reasonable assurance plan
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or to permit applicants to meet environmental resource permit
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stormwater treatment performance standards or to achieve for the
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purpose of achieving net improvement or meeting environmental
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resource permit performance standards under s. 373.414(1)(b)3.
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after reasonable assurances have been provided for the design
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and construction of all onsite stormwater management, as
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required by law.
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(d) The use of enhancement credits from a water quality
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enhancement area constitutes compensating stormwater treatment
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under the environmental resource permitting program.
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(5) WATER QUALITY ENHANCEMENT SERVICE AREA.—The department
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shall establish a water quality enhancement service area for
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each water quality enhancement area. Enhancement credits may be
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withdrawn and used only to address adverse impacts in the
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enhancement service area. The boundaries of the enhancement
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service area shall depend upon the geographic area in which the
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water quality enhancement area could reasonably be expected to
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address adverse impacts and must, at a minimum, consist of a
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Hydrologic Unit Code 8 (HUC 8) sub-basin as set forth by the
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United States Geological Survey. Enhancement service areas may
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overlap, and enhancement service areas for two or more water
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quality enhancement areas may be approved for a regional
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watershed.
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(7) ENHANCEMENT CREDITS.—
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(e) Reductions in pollutant loading required under any
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state regulatory program are not eligible to be considered as
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enhancement credits. In addition, the term "credit" shall not be
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used to refer to pollutant reduction achieved through
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compensating stormwater treatment to meet environmental resource
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permitting stormwater performance standards or as a mitigation
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measure to achieve net improvement under s. 373.414(1)(b)3.
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outside of enhancement credits generated from a water quality
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enhancement area.
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(9) RULES.—The department shall adopt rules to implement
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this section which shall be filed for adoption no later than
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October 1, 2026. This section may not be implemented until the
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department adopts such rules. Pending the adoption of rules to
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implement this section, the department shall accept, review and
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take final agency action on applications for water quality
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enhancement area provisional permits. The department shall issue
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a water quality enhancement provisional permit in response to a
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submitted application if the applicant provides reasonable
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assurance of meeting the statutory criteria in this section.
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Enhancement credits may be used from a water quality enhancement
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area established under a provisional permit as provided in this
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section subject to compliance with s. 373.4134 and the terms of
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the provisional permit. Notwithstanding any other provision of
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law or rule, the department or a water management district
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reviewing an environmental resource permit application that
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seeks to satisfy stormwater treatment performance standards or
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achieve net improvement under s. 373.414(1)(b)3. shall allow the
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use of enhancement credits from a water quality enhancement area
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with a provisional permit pursuant to the terms of such
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provisional permit. After the department adopts rules to
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implement this section, the department may modify a water
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quality enhancement area provisional permit to conform such
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permit to such rules. Any enhancement credits used from a water
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quality enhancement area established under a provisional permit
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shall continue to be recognized by the department and water
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management districts without change regardless of whether the
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provisional permit is subsequently modified to conform to the
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adopted rules.
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Section 5. Paragraph (b) of subsection (1) of section
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373.414, Florida Statutes, is amended to read:
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373.414 Additional criteria for activities in surface
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waters and wetlands.—
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(1) As part of an applicant's demonstration that an
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activity regulated under this part will not be harmful to the
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water resources or will not be inconsistent with the overall
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objectives of the district, the governing board or the
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department shall require the applicant to provide reasonable
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assurance that state water quality standards applicable to
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waters as defined in s. 403.031 will not be violated and
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reasonable assurance that such activity in, on, or over surface
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waters or wetlands, as delineated in s. 373.421(1), is not
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contrary to the public interest. However, if such an activity
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significantly degrades or is within an Outstanding Florida
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Water, as provided by department rule, the applicant must
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provide reasonable assurance that the proposed activity will be
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clearly in the public interest.
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(b) If the applicant is unable to otherwise meet the
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criteria set forth in this subsection, the governing board or
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the department, in deciding to grant or deny a permit, must
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consider measures proposed by or acceptable to the applicant to
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mitigate adverse effects that may be caused by the regulated
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activity. Such measures may include, but are not limited to,
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onsite mitigation, offsite mitigation, offsite regional
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mitigation, and the purchase of mitigation credits from
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mitigation banks permitted under s. 373.4136. It is the
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responsibility of the applicant to choose the form of
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mitigation. The mitigation must offset the adverse effects
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caused by the regulated activity.
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1. The department or water management districts may accept
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the donation of money as mitigation only where the donation is
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specified for use in a duly noticed environmental creation,
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preservation, enhancement, or restoration project, endorsed by
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the department or the governing board of the water management
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district, which offsets the impacts of the activity permitted
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under this part. However, this subsection does not apply to
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projects undertaken pursuant to s. 373.4137 or chapter 378.
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Where a permit is required under this part to implement any
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project endorsed by the department or a water management
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district, all necessary permits must be have been issued before
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prior to the acceptance of any cash donation. After the
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effective date of this act, when money is donated to either the
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department or a water management district to offset impacts
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authorized by a permit under this part, the department or the
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water management district shall accept only a donation that
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represents the full cost to the department or water management
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district of undertaking the project that is intended to mitigate
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the adverse impacts. The full cost shall include all direct and
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indirect costs, as applicable, such as those for land
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acquisition, land restoration or enhancement, perpetual land
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management, and general overhead consisting of costs such as
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staff time, building, and vehicles. The department or the water
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management district may use a multiplier or percentage to add to
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other direct or indirect costs to estimate general overhead.
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Mitigation credit for such a donation may be given only to the
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extent that the donation covers the full cost to the agency of
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undertaking the project intended to mitigate the adverse
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impacts. However, nothing herein may be construed to prevent the
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department or a water management district from accepting a
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donation representing a portion of a larger project, provided
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that the donation covers the full cost of that portion and
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mitigation credit is given only for that portion. The department
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or water management district may deviate from the full cost
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requirements of this subparagraph to resolve a proceeding
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brought pursuant to chapter 70 or a claim for inverse
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condemnation. Nothing in This section may not be construed to
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require the owner of a private mitigation bank, permitted under
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s. 373.4136, to include the full cost of a mitigation credit in
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the price of the credit to a purchaser of such said credit.
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2. The department and each water management district shall
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report by March 1 of each year, as part of the consolidated
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annual report required by s. 373.036(7), all cash donations
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accepted under subparagraph 1. during the preceding water
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management district fiscal year for wetland mitigation purposes.
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The report must exclude those contributions pursuant to s.
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373.4137. The report must include a description of the endorsed
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mitigation projects and, except for projects governed by s.
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373.4135(6), must address, as applicable, success criteria,
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project implementation status and timeframe, monitoring, long-
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term management, provisions for preservation, and full cost
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accounting.
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3. If the applicant is unable to meet water quality
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standards because existing ambient water quality does not meet
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standards, the governing board or the department must consider
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mitigation measures, such as compensating stormwater treatment
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as defined in s. 373.403(23), proposed by or acceptable to the
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applicant that cause net improvement of the water quality in the
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receiving body of water for those parameters which do not meet
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standards.
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4. If mitigation requirements imposed by a local
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government for surface water and wetland impacts of an activity
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regulated under this part cannot be reconciled with mitigation
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requirements approved under a permit for the same activity
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issued under this part, including application of the uniform
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wetland mitigation assessment method adopted pursuant to
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subsection (18), the mitigation requirements for surface water
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and wetland impacts are controlled by the permit issued under
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this part.
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Section 6. For the purpose of incorporating the amendment
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made by this act to section 373.414, Florida Statutes, in a
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reference thereto, paragraph (d) of subsection (6) of section
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373.4136, Florida Statutes, is reenacted to read:
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373.4136 Establishment and operation of mitigation banks.—
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(6) MITIGATION SERVICE AREA.—The department or water
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management district shall establish a mitigation service area
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for each mitigation bank permit. The department or water
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management district shall notify and consider comments received
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on the proposed mitigation service area from each local
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government within the proposed mitigation service area. Except
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as provided in this section, mitigation credits may be withdrawn
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and used only to offset adverse impacts in the mitigation
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service area. The boundaries of the mitigation service area
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shall depend upon the geographic area where the mitigation bank
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could reasonably be expected to offset adverse impacts.
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Mitigation service areas may overlap, and mitigation service
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areas for two or more mitigation banks may be approved for a
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regional watershed.
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(d) If the provisions of s. 373.414(1)(b) and (8) are met
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and an insufficient number or type of credits from banks whose
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permitted service area overlays in whole or in part the regional
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watershed in which the impacts occur, the permit applicant is
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entitled to a one-time use of credits released from a mitigation
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bank outside the mitigation bank service area to offset impacts
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pursuant to s. 373.414(1)(b), as established by the procedure in
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paragraph (f). The department or water management district must
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have determined that the mitigation service area lacked the
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appropriate credit type. Priority must be given to mitigation
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banks whose permitted service area fully includes the impacted
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site. If the number of released credits within a mitigation
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service area only partially offsets the impacts associated with
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a proposed project in the mitigation service area, the permit
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applicant may only use out-of-service-area credits to account
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for the difference between the released credits available in the
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mitigation bank service area and the credits required to offset
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the impacts associated with the proposed project. In
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implementing this subsection, the department and water
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management districts shall apply a proximity factor to determine
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adequate compensatory mitigation as follows:
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1. A 1.0 multiplier shall be applied for use of in-kind
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credits within the service area.
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2. A 1.0 multiplier shall be applied for use of in-kind
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and out-of-service-area credits when the service area overlays
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part of the same regional watershed as the proposed impacts only
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after credit deficiency has been established by the procedure
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set forth in paragraph (f).
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3. A 1.2 multiplier shall be applied for use of in-kind
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and out-of-service-area credits located within a regional
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watershed immediately adjacent to the regional watershed
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overlain by a bank service area in which proposed impacts are
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located only after credit deficiency has been established by the
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procedure set forth in paragraph (f).
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4. When in-kind credits are not available to offset
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impacts in the regional watershed immediately adjacent to the
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regional watershed overlain by a mitigation bank service area in
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which the proposed impacts are located, an additional 0.25
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multiplier shall be applied for each additional regional
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watershed boundary crossed only after credit deficiency has been
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established by the procedure set forth in paragraph (f).
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5. An additional 0.50 multiplier shall be applied after
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any multipliers required in subparagraphs 1.-4., if the
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mitigation used to offset impacts entails out-of-kind
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replacement.
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Section 7. This act shall take effect July 1, 2026.