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       
2003 legislative session  -  everglades related bills    

 

HB 1069        

http://www.myfloridahouse.com/billInfo.aspx?bid=10435  

Water Resources: Revises and adds provision to the Florida Water Resources Act of 1972; requires local governments to include projected water use in comprehensive plans and includes potable water facilities and availability of water resources as components thereof; revises procedure for fixing and changing rates to include costs of alternative water supply facilities; authorizes the Florida Public Service Commission to establish conservation and drought rates; provides conditions to receive funding assistance for certain projects; prohibits the sale of consumptive use water rights; requires adoption of rules relating to longer duration permits and concurrent review of consumptive use and environmental resource permit applications; provides for metering use of reclaimed water and volume-based rates therefor and requires wastewater utilities to submit plans therefor metering use and volume-based rate structures to the department; provides for reclaimed water use at state facilities; provides for development of rate structures for alternative water supply systems.

 

Bill text - Original filed version                  

HB 1069 2003
   
1 A bill to be entitled
2          An act relating to water resources; amending s. 163.3167,
3    F.S.; requiring local governments to include projected
4    water use in comprehensive plans; amending s. 163.3177,
5    F.S.; including potable water facilities and availability
6    of water resources as components of a comprehensive plan;
7    amending s. 367.081, F.S.; revising procedure for fixing
8    and changing rates to include the recovery of costs of
9    alternative water supply facilities; amending s. 367.0814,
10    F.S.; revising limit on the amount of revenues received by
11    a utility to qualify for staff assistance in changing
12    rates or charges; creating s. 367.0818, F.S.; authorizing
13    the Florida Public Service Commission to establish
14    conservation or drought rates; amending s. 373.0361, F.S.;
15    including conservation measures in regional water supply
16    plans; providing for a technical committee and providing
17    duties thereof; amending s. 373.0831, F.S.; requiring the
18    governing board of a water control district to include
19    certain information in its annual budget request; creating
20    s. 373.186, F.S.; providing legislative findings and
21    intent with regard to landscape irrigation design;
22    creating s. 373.190, F.S.; requiring individual water
23    meters in certain establishments; providing exceptions;
24    amending s. 373.1961, F.S.; providing for funding for
25    certain water management districts; providing funding
26    priority; providing conditions for certain projects to
27    receive funding assistance; amending s. 373.219, F.S.;
28    providing an exception from permit requirements for
29    certain water uses; amending s. 373.223, F.S.; providing
30    criteria for designation of proposed use of water by a
31    utility as a reasonable-beneficial use; providing for
32    informative billing by utilities; prohibiting the sale of
33    consumptive use water rights; creating s. 373.2231, F.S.;
34    providing for consideration of impact of proposed water
35    use; amending s. 373.236, F.S.; requiring the Department
36    of Environmental Protection or the water management
37    district to adopt rules relating to longer duration
38    permits under certain circumstances; creating s. 373.4271,
39    F.S.; requiring the department, in consultation with the
40    district, to adopt rules relating to concurrent review of
41    consumptive use permit and environmental resource permit
42    applications; amending s. 378.212, F.S.; allowing a
43    variance from pts. III and IV of ch. 378, F.S., and pt. IV
44    of ch. 373, F.S., to accommodate reclamation; amending s.
45    403.064, F.S.; providing for metering use of reclaimed
46    water and volume-based rates therefor; requiring
47    wastewater utilities to submit plans for metering use and
48    volume-based rate structures to the department; amending
49    s. 403.0645, F.S.; providing for reclaimed water use at
50    state facilities; requiring reports; amending s. 403.1835,
51    F.S.; providing for development of rate structures for
52    alternative water supply systems; providing criteria;
53    amending ss. 373.016, 373.1962, 373.217, and 373.229,
54    F.S.; conforming cross references to changes made by the
55    act; providing an effective date.
56         
57          Be It Enacted by the Legislature of the State of Florida:
58         
59          Section 1. Subsection (13) is added to section 163.3167,
60    Florida Statutes, to read:
61          163.3167 Scope of act.--
62          (13) Each local government shall address in its
63    comprehensive plan the availability of water supplies necessary
64    to meet the projected water use demands for the established
65    planning period, compatible with any applicable plan developed
66    pursuant to s. 373.0361.
67          Section 2. Paragraph (a) of subsection (3) and paragraph
68    (a) of subsection (6) of section 163.3177, Florida Statutes, are
69    amended to read:
70          163.3177 Required and optional elements of comprehensive
71    plan; studies and surveys.--
72          (3)(a) The comprehensive plan shall contain a capital
73    improvements element designed to consider the need for and the
74    location of public facilities in order to encourage the
75    efficient utilization of such facilities and set forth:
76          1. A component which outlines principles for construction,
77    extension, or increase in capacity of public facilities, as well
78    as a component which outlines principles for correcting existing
79    public facility deficiencies, which are necessary to implement
80    the comprehensive plan. The components shall cover at least a 5-
81    year period.
82          2. A component which outlines plans for construction,
83    extension, or increase in capacity of potable water facilities.
84    Such component shall be compatible with the applicable regional
85    water supply plan developed pursuant to s. 373.0361. Such
86    component shall include a water conservation section that
87    outlines potential water savings to be gained through water
88    conservation practices.
89          3.2.Estimated public facility costs, including a
90    delineation of when facilities will be needed, the general
91    location of the facilities, and projected revenue sources to
92    fund the facilities.
93          4.3.Standards to ensure the availability of public
94    facilities and the adequacy of those facilities including
95    acceptable levels of service.
96          5.4.Standards for the management of debt.
97          (6) In addition to the requirements of subsections (1)-
98    (5), the comprehensive plan shall include the following
99    elements:
100          (a) A future land use plan element designating proposed
101    future general distribution, location, and extent of the uses of
102    land for residential uses, commercial uses, industry,
103    agriculture, recreation, conservation, education, public
104    buildings and grounds, other public facilities, and other
105    categories of the public and private uses of land. Each future
106    land use category must be defined in terms of uses included, and
107    must include standards to be followed in the control and
108    distribution of population densities and building and structure
109    intensities. The proposed distribution, location, and extent of
110    the various categories of land use shall be shown on a land use
111    map or map series which shall be supplemented by goals,
112    policies, and measurable objectives. The future land use plan
113    shall be based upon surveys, studies, and data regarding the
114    area, including the amount of land required to accommodate
115    anticipated growth; the projected population of the area; the
116    character of undeveloped land; the availability of ground and
117    surface water resources for present and future water supplies
118    and the potential for development of alternative water supplies;
119    the availability of public services; the need for redevelopment,
120    including the renewal of blighted areas and the elimination of
121    nonconforming uses which are inconsistent with the character of
122    the community; and, in rural communities, the need for job
123    creation, capital investment, and economic development that will
124    strengthen and diversify the community's economy. The future
125    land use plan may designate areas for future planned development
126    use involving combinations of types of uses for which special
127    regulations may be necessary to ensure development in accord
128    with the principles and standards of the comprehensive plan and
129    this act. In addition, for rural communities, the amount of land
130    designated for future planned industrial use shall be based upon
131    surveys and studies that reflect the need for job creation,
132    capital investment, and the necessity to strengthen and
133    diversify the local economies, and shall not be limited solely
134    by the projected population of the rural community. The future
135    land use plan of a county may also designate areas for possible
136    future municipal incorporation. The land use maps or map series
137    shall generally identify and depict historic district boundaries
138    and shall designate historically significant properties meriting
139    protection. The future land use element must clearly identify
140    the land use categories in which public schools are an allowable
141    use. When delineating the land use categories in which public
142    schools are an allowable use, a local government shall include
143    in the categories sufficient land proximate to residential
144    development to meet the projected needs for schools in
145    coordination with public school boards and may establish
146    differing criteria for schools of different type or size. Each
147    local government shall include lands contiguous to existing
148    school sites, to the maximum extent possible, within the land
149    use categories in which public schools are an allowable use. All
150    comprehensive plans must comply with the school siting
151    requirements of this paragraph no later than October 1, 1999.
152    The failure by a local government to comply with these school
153    siting requirements by October 1, 1999, will result in the
154    prohibition of the local government's ability to amend the local
155    comprehensive plan, except for plan amendments described in s.
156    163.3187(1)(b), until the school siting requirements are met.
157    Amendments proposed by a local government for purposes of
158    identifying the land use categories in which public schools are
159    an allowable use or for adopting or amending the school-siting
160    maps pursuant to s. 163.31776(3) are exempt from the limitation
161    on the frequency of plan amendments contained in s. 163.3187.
162    The future land use element shall include criteria that
163    encourage the location of schools proximate to urban residential
164    areas to the extent possible and shall require that the local
165    government seek to collocate public facilities, such as parks,
166    libraries, and community centers, with schools to the extent
167    possible and to encourage the use of elementary schools as focal
168    points for neighborhoods. For schools serving predominantly
169    rural counties, defined as a county with a population of 100,000
170    or fewer, an agricultural land use category shall be eligible
171    for the location of public school facilities if the local
172    comprehensive plan contains school siting criteria and the
173    location is consistent with such criteria.
174          Section 3. Subsection (2) of section 367.081, Florida
175    Statutes, is amended to read:
176          367.081 Rates; procedure for fixing and changing.--
177          (2)(a)1. The commission shall, either upon request or upon
178    its own motion, fix rates which are just, reasonable,
179    compensatory, and not unfairly discriminatory. In every such
180    proceeding, the commission shall consider the value and quality
181    of the service and the cost of providing the service, which
182    shall include, but not be limited to, debt interest; the
183    requirements of the utility for working capital; maintenance,
184    depreciation, tax, and operating expenses incurred in the
185    operation of all property used and useful in the public service;
186    and a fair return on the investment of the utility in property
187    used and useful in the public service. Pursuant to s.
188    373.1961(2)(l), the commission shall allow recovery of the full,
189    prudently incurred costs of alternative water supply facilities.
190    However, the commission shall not allow the inclusion of
191    contributions-in-aid-of-construction in the rate base of any
192    utility during a rate proceeding, nor shall the commission
193    impute prospective future contributions-in-aid-of-construction
194    against the utility's investment in property used and useful in
195    the public service; and accumulated depreciation on such
196    contributions-in-aid-of-construction shall not be used to reduce
197    the rate base, nor shall depreciation on such contributed assets
198    be considered a cost of providing utility service.
199          2. For purposes of such proceedings, the commission shall
200    consider utility property, including land acquired or facilities
201    constructed or to be constructed within a reasonable time in the
202    future, not to exceed 24 months after the end of the historic
203    base year used to set final rates unless a longer period is
204    approved by the commission, to be used and useful in the public
205    service, if:
206          a. Such property is needed to serve current customers;
207          b. Such property is needed to serve customers 5 years
208    after the end of the test year used in the commission's final
209    order on a rate request as provided in subsection (6) at a
210    growth rate for equivalent residential connections not to exceed
211    5 percent per year; or
212          c. Such property is needed to serve customers more than 5
213    full years after the end of the test year used in the
214    commission's final order on a rate request as provided in
215    subsection (6) only to the extent that the utility presents
216    clear and convincing evidence to justify such consideration.
217         
218          Notwithstanding the provisions of this paragraph, the commission
219    shall approve rates for service which allow a utility to recover
220    from customers the full amount of environmental compliance
221    costs. Such rates may not include charges for allowances for
222    funds prudently invested or similar charges. For purposes of
223    this requirement, the term "environmental compliance costs"
224    includes all reasonable expenses and fair return on any prudent
225    investment incurred by a utility in complying with the
226    requirements or conditions contained in any permitting,
227    enforcement, or similar decisions of the United States
228    Environmental Protection Agency, the Department of Environmental
229    Protection, a water management district, or any other
230    governmental entity with similar regulatory jurisdiction.
231          (b) In establishing initial rates for a utility, the
232    commission may project the financial and operational data as set
233    out in paragraph (a) to a point in time when the utility is
234    expected to be operating at a reasonable level of capacity.
235          Section 4. Subsection (1) of section 367.0814, Florida
236    Statutes, is amended to read:
237          367.0814 Staff assistance in changing rates and charges;
238    interim rates.--
239          (1) The commission may establish rules by which a water or
240    wastewater utility whose gross annual revenues are $200,000
241    $150,000or less may request and obtain staff assistance for the
242    purpose of changing its rates and charges. A utility may request
243    staff assistance by filing an application with the commission.
244          Section 5. Section 367.0818, Florida Statutes, is created
245    to read:
246          367.0818 Conservation or drought rates.--The commission
247    may, during any proceeding for a change in rates, upon its own
248    motion, upon a petition from any party, or by a tariff filing,
249    establish conservation or drought rates designed to promote more
250    efficient use of water and provide an economic incentive for
251    consumers to limit water use. The commission shall have the
252    authority to stabilize the revenues that are generated by
253    conservation or drought rates.
254          Section 6. Paragraph (a) of subsection (4) of section
255    373.016, Florida Statutes, is amended to read:
256          373.016 Declaration of policy.--
257          (4)(a) Because water constitutes a public resource
258    benefiting the entire state, it is the policy of the Legislature
259    that the waters in the state be managed on a state and regional
260    basis. Consistent with this directive, the Legislature
261    recognizes the need to allocate water throughout the state so as
262    to meet all reasonable-beneficial uses. However, the Legislature
263    acknowledges that such allocations have in the past adversely
264    affected the water resources of certain areas in this state. To
265    protect such water resources and to meet the current and future
266    needs of those areas with abundant water, the Legislature
267    directs the department and the water management districts to
268    encourage the use of water from sources nearest the area of use
269    or application whenever practicable. Such sources shall include
270    all naturally occurring water sources and all alternative water
271    sources, including, but not limited to, desalination,
272    conservation, reuse of nonpotable reclaimed water and
273    stormwater, and aquifer storage and recovery. Reuse of potable
274    reclaimed water and stormwater shall not be subject to the
275    evaluation described in s. 373.223(4)(3)(a)-(g). However, this
276    directive to encourage the use of water, whenever practicable,
277    from sources nearest the area of use or application shall not
278    apply to the transport and direct and indirect use of water
279    within the area encompassed by the Central and Southern Florida
280    Flood Control Project, nor shall it apply anywhere in the state
281    to the transport and use of water supplied exclusively for
282    bottled water as defined in s. 500.03(1)(d), nor shall it apply
283    to the transport and use of reclaimed water for electrical power
284    production by an electric utility as defined in section
285    366.02(2).
286          Section 7. Paragraphs (a) and (f) of subsection (2) of
287    section 373.0361, Florida Statutes, are amended to read:
288          373.0361 Regional water supply planning.--
289          (2) Each regional water supply plan shall be based on at
290    least a 20-year planning period and shall include, but not be
291    limited to:
292          (a) A water supply development component that includes:
293          1. A quantification of the water supply needs for all
294    existing and reasonably projected future uses within the
295    planning horizon. The level-of-certainty planning goal
296    associated with identifying the water supply needs of existing
297    and future reasonable-beneficial uses shall be based upon
298    meeting those needs for a 1-in-10-year drought event.
299          2. A list of water source options for water supply
300    development, including traditional and alternative sources and
301    conservation measures, from which local government, government-
302    owned and privately owned utilities, self-suppliers, and others
303    may choose, which will exceed the needs identified in
304    subparagraph 1.
305          3. For each option listed in subparagraph 2., the
306    estimated amount of water available for use and the estimated
307    costs of and potential sources of funding for water supply
308    development.
309          4. A list of water supply development projects that meet
310    the criteria in s. 373.0831(4).
311          (f) The technical data, modeling tools,and information
312    applicable to the planning region which are contained in the
313    district water management plan and are necessary to support the
314    regional water supply plan, which data, modeling tools, and
315    information must be reviewed by a technical committee comprised
316    of, at a minimum, members appointed from each appropriate county
317    local planning agency or local planning agency staff, each
318    appropriate regional planning council, and each appropriate
319    water supply authority. Upon review, a recommendation shall be
320    made by the committee as to whether the data, tools, and
321    information are the best available to serve as the basis of the
322    district water management plan and are necessary to support the
323    regional water supply plan and the local government plans
324    developed pursuant to s. 163.3177.
325          Section 8. Subsection (3) of section 373.0831, Florida
326    Statutes, is amended to read:
327          373.0831 Water resource development; water supply
328    development.--
329          (3) The water management districts shall fund and
330    implement water resource development as defined in s. 373.019.
331    Each governing board shall include in its annual budget the
332    amount needed for the fiscal year to implement water resource
333    development projects, as prioritized in its regional water
334    supply plans. When submitting its annual budget to the
335    Executive Office of the Governor for review under s. 373.536,
336    the governing board shall explain how each water resource
337    development project will produce additional water available for
338    consumptive uses and estimate the quantity of water to be
339    produced.
340          Section 9. Section 373.186, Florida Statutes, is created
341    to read:
342          373.186 Landscape irrigation design.--
343          (1) The Legislature finds that multiple areas throughout
344    the state have been identified by water management districts as
345    water resource caution areas, which indicates that water demand
346    in those areas will, in the near future, exceed the current
347    available water supply, and that conservation is one of the
348    mechanisms by which future water demand will be met.
349          (2) The Legislature finds that landscape irrigation
350    comprises a significant portion of water use and the current
351    typical landscape irrigation system designs offer significant
352    potential water conservation benefits.
353          (3) It is the intent of the Legislature to improve
354    landscape irrigation water use efficiency by ensuring landscape
355    irrigation systems meet or exceed minimum design criteria.
356          (4) All local governments are encouraged to develop and
357    adopt landscape irrigation design standards for new construction
358    that incorporates a landscape irrigation system. Such standards
359    should promote effective and efficient use of irrigation water
360    and include a consideration of local demographic, hydrologic,
361    and other considerations as they apply to landscape irrigation
362    water use.
363          Section 10. Section 373.190, Florida Statutes, is created
364    to read:
365          373.190 Metering.--Individual water meters shall be
366    required for each separate occupancy unit of new commercial
367    establishments; residential buildings; condominiums, including
368    resort condominiums and timeshares; cooperatives; marinas; and
369    trailer, mobile home, and recreational vehicle parks for which
370    construction is commenced after July 1, 2003. This requirement
371    shall apply regardless of whether the facility is engaged in a
372    timesharing plan. Individual water meters shall not be required:
373          (1) In those portions of a commercial establishment where
374    the floor space dimensions or physical configuration of the
375    units are subject to alteration as evidenced by nonstructural
376    element partition walls, unless the utility determines that
377    adequate provisions can be made to modify the metering to
378    accurately reflect such alterations.
379          (2) For water used in specialized-use housing such as
380    hospitals, nursing homes, living facilities located on the same
381    premises as and operated in conjunction with a nursing home or
382    other health care facility providing at least the same level and
383    types of service as a nursing home, convalescent homes,
384    facilities certified under chapter 651, college dormitories,
385    convents, sorority houses, fraternity houses, motels, hotels,
386    and similar facilities.
387          (3) For separate specifically designated areas for
388    overnight occupancy at trailer, mobile home, and recreational
389    vehicle parks where permanent residency is not established and
390    for marinas where living on board is prohibited by ordinance,
391    deed restriction, or other permanent means.
392          Section 11. Subsection (2) of section 373.1961, Florida
393    Statutes, is amended to read:
394          373.1961 Water production.--
395          (2) The Legislature finds that, due to a combination of
396    factors, vastly increased demands have been placed on natural
397    supplies of fresh water, and that, absent increased development
398    of alternative water supplies, such demands may increase in the
399    future. The Legislature also finds that potential exists in the
400    state for the production of significant quantities of
401    alternative water supplies, including reclaimed water, and that
402    water production includes the development of alternative water
403    supplies, including reclaimed water, for appropriate uses. It is
404    the intent of the Legislature that utilities develop reclaimed
405    water systems, where reclaimed water is the most appropriate
406    alternative water supply option, to deliver reclaimed water to
407    as many users as possible through the most cost-effective means,
408    and to construct reclaimed water system infrastructure to their
409    owned or operated properties and facilities where they have
410    reclamation capability. It is also the intent of the Legislature
411    that the water management districts which levy ad valorem taxes
412    for water management purposes should share a percentage of those
413    tax revenues with water providers and users, including local
414    governments, water, wastewater, and reuse utilities, municipal,
415    industrial, and agricultural water users, and other public and
416    private water users, to be used to supplement other funding
417    sources in the development of alternative water supplies. The
418    Legislature finds that public moneys or services provided to
419    private entities for such uses constitute public purposes which
420    are in the public interest. In order to further the development
421    and use of alternative water supply systems, including reclaimed
422    water systems, the Legislature provides the following:
423          (a) The governing boards of the water management districts
424    where water resource caution areas have been designated shall
425    include in their annual budgets an amount for the development of
426    alternative water supply systems, including reclaimed water
427    systems, pursuant to the requirements of this subsection. Annual
428    funding amounts for the St. Johns River, South Florida, and
429    Southwest Florida Water Management Districts shall be at least
430    $20 million. Funding for alternative water supply systems in the
431    Northwest Florida Water Management District shall be
432    administered by the department using annual state
433    appropriations.Beginning in 1996, such amounts shall be made
434    available to water providers and users no later than December 31
435    of each year, through grants, matching grants, revolving loans,
436    or the use of district lands or facilities pursuant to the
437    requirements of this subsection and guidelines established by
438    the districts. In making grants or loans, funding priority
439    shall be given to projects located within water resource caution
440    areas, projects consistent with regional water supply plans, and
441    projects featuring efficient and effective use of reclaimed
442    water.
443          (b) It is the intent of the Legislature that for each
444    reclaimed water utility, or any other utility, which receives
445    funds pursuant to this subsection, the appropriate rate-setting
446    authorities should develop rate structures for all water,
447    wastewater, and reclaimed water and other alternative water
448    supply utilities in the service area of the funded utility,
449    which accomplish the following:
450          1. Provide meaningful progress toward the development and
451    implementation of alternative water supply systems, including
452    reclaimed water systems;
453          2. Promote the conservation of fresh water withdrawn from
454    natural systems;
455          3. Provide for an appropriate distribution of costs for
456    all water, wastewater, and alternative water supply utilities,
457    including reclaimed water utilities, among all of the users of
458    those utilities; and
459          4. Prohibit rate discrimination within classes of utility
460    users.
461          (c) Funding assistance provided by the water management
462    districts for water reuse systems shall include grant or loan
463    conditions that require the following:
464          1. Metering of reclaimed water use for the following
465    activities: residential irrigation, agricultural irrigation,
466    industrial uses, golf course irrigation, landscape irrigation,
467    irrigation of other public access areas, commercial and
468    institutional uses such as toilet flushing, and transfers to
469    other reclaimed water utilities.
470          2. Implementation of reclaimed water rate structures based
471    on actual use of reclaimed water for the types of reuse
472    activities listed in subparagraph 1.
473          3. Implementation of education programs to inform the
474    public about water issues, water conservation, and the
475    importance and proper use of reclaimed water.
476          4. Development of global positioning satellite location
477    data for key reuse facilities.
478          (d)(c)In order to be eligible for funding pursuant to
479    this subsection, a project must be consistent with a local
480    government comprehensive plan and the governing body of the
481    local government must require all appropriate new facilities
482    within the project's service area to connect to and use the
483    project's alternative water supplies. The appropriate local
484    government must provide written notification to the appropriate
485    district that the proposed project is consistent with the local
486    government comprehensive plan.
487          (e)(d)Any and all revenues disbursed pursuant to this
488    subsection shall be applied only for the payment of capital or
489    infrastructure costs for the construction of alternative water
490    supply systems that provide alternative water supplies.
491          (f)(e)By January 1 of each year, the governing boards
492    shall make available written guidelines for the disbursal of
493    revenues pursuant to this subsection. Such guidelines shall
494    include at minimum:
495          1. An application process and a deadline for filing
496    applications annually.
497          2. A process for determining project eligibility pursuant
498    to the requirements of paragraphs (d)(c) and (e)(d).
499          3. A process and criteria for funding projects pursuant to
500    this subsection that cross district boundaries or that serve
501    more than one district.
502          (g)(f)The governing board of each water management
503    district shall establish an alternative water supplies grants
504    advisory committee to recommend to the governing board projects
505    for funding pursuant to this subsection. The advisory committee
506    members shall include, but not be limited to, one or more
507    representatives of county, municipal, and investor-owned private
508    utilities, and may include, but not be limited to,
509    representatives of agricultural interests and environmental
510    interests. Each committee member shall represent his or her
511    interest group as a whole and shall not represent any specific
512    entity. The committee shall apply the guidelines and project
513    eligibility criteria established by the governing board in
514    reviewing proposed projects. After one or more hearings to
515    solicit public input on eligible projects, the committee shall
516    rank the eligible projects and shall submit them to the
517    governing board for final funding approval. The advisory
518    committee may submit to the governing board more projects than
519    the available grant money would fund.
520          (h)(g)All revenues made available annually pursuant to
521    this subsection must be encumbered annually by the governing
522    board if it approves projects sufficient to expend the available
523    revenues. Funds must be disbursed within 36 months after
524    encumbrance.
525          (i)(h)For purposes of this subsection, alternative water
526    supplies are supplies of water that have been reclaimed after
527    one or more public supply, municipal, industrial, commercial, or
528    agricultural uses, or are supplies of stormwater, or brackish or
529    salt water, that have been treated in accordance with applicable
530    rules and standards sufficient to supply the intended use.
531          (j)(i)This subsection shall not be subject to the
532    rulemaking requirements of chapter 120.
533          (k)(j)By January 30 of each year, each water management
534    district shall submit an annual report to the Governor, the
535    President of the Senate, and the Speaker of the House of
536    Representatives which accounts for the disbursal of all budgeted
537    amounts pursuant to this subsection. Such report shall describe
538    all projects funded and shall account separately for moneys
539    provided through grants, matching grants, revolving loans, and
540    the use of district lands or facilities.
541          (l)(k)The Florida Public Service Commission shall allow
542    entities under its jurisdiction constructing alternative water
543    supply facilities, including but not limited to aquifer storage
544    and recovery wells, to recover the full, prudently incurred cost
545    of such facilities through their rate structure. Every component
546    of an alternative water supply facility constructed by an
547    investor-owned utility shall be recovered in current rates.
548          Section 12. Subsection (9) of section 373.1962, Florida
549    Statutes, is amended to read:
550          373.1962 Regional water supply authorities.--
551          (9) Where a water supply authority exists pursuant to this
552    section or s. 373.1963 under a voluntary interlocal agreement
553    that is consistent with requirements in s. 373.1963(1)(b) and
554    receives or maintains consumptive use permits under this
555    voluntary agreement consistent with the water supply plan, if
556    any, adopted by the governing board, such authority shall be
557    exempt from consideration by the governing board or department
558    of the factors specified in s. 373.223(4)(3)(a)-(g) and the
559    submissions required by s. 373.229(3). Such exemptions shall
560    apply only to water sources within the jurisdictional areas of
561    such voluntary water supply interlocal agreements.
562          Section 13. Subsection (2) of section 373.217, Florida
563    Statutes, is amended to read:
564          373.217 Superseded laws and regulations.--
565          (2) It is the further intent of the Legislature that Part
566    II of the Florida Water Resources Act of 1972, as amended, as
567    set forth in ss. 373.203-373.249, shall provide the exclusive
568    authority for requiring permits for the consumptive use of water
569    and for authorizing transportation thereof pursuant to s.
570    373.223(3)(2).
571          Section 14. Subsection (1) of section 373.219, Florida
572    Statutes, is amended to read:
573          373.219 Permits required.--
574          (1) The governing board or the department may require such
575    permits for consumptive use of water and may impose such
576    reasonable conditions as are necessary to assure that such use
577    is consistent with the overall objectives of the district or
578    department and is not harmful to the water resources of the
579    area. However, no permit shall be required for domestic
580    consumption of water by individual users or consumption or use
581    of domestic wastewater effluent subject to review under s.
582    403.064.
583          Section 15. Section 373.223, Florida Statutes, is amended
584    to read:
585          373.223 Conditions for a permit.--
586          (1) To obtain a permit pursuant to the provisions of this
587    chapter, the applicant must establish that the proposed use of
588    water:
589          (a) Is a reasonable-beneficial use as defined in s.
590    373.019;
591          (b) Will not interfere with any presently existing legal
592    use of water; and
593          (c) Is consistent with the public interest.