SEFLUC - Legislative Update (00420496-4).DOCX



MEMORANDUMTo: SEFLUCFrom:Edward P. de la Parte and Kristin MeltonDate: May 12, 2014RE: 2014 Legislation – SEFLUC May UpdateThe following is a summary of legislation which may be of interest to the Southeast Florida Utility Council (“SEFLUC”). A summary of proposed changes and an analysis of impacts to SEFLUC are presented for each bill. In some cases, because of the length of the bill, the analysis may be limited to only those provisions impacting SEFLUC. In the event a more extensive summary and analysis is required, a separate memo addressing the specific legislation can be prepared upon request.List of Bills Contained in Memo:Enrolled BillsSB 272 – Public Utility RegulationSB 536 - Reclaimed WaterHB 703/SB 1464 – Environmental Regulation**Portions of Failed HB 703 and SB 1464 incorporated in HB 7023-Economic DevelopmentSB 1632 - Special DistrictsFailed BillsSB 1576/HB 1313 – Springs LegislationHB 357/SB 1050 – Water and Wastewater Utility SystemsSB 636 - Public Utility SuppliersHB 813/SB 1248 – Water and Wastewater UtilitiesSB 910/HB 1107 – Utility ProjectsHB 1055/ SB 1306 –Onsite Sewage Treatment and Disposal SystemsSB 1160/ HB 1113 – Onsite Sewage Treatment and Disposal SystemsHB 1051/ SB 1318 – Public Records/Public Private PartnershipsHB 1355 and SB 1626 - Administrative Procedures ENROLLED BILLSSB 272– Public Utility Regulation/Water and Wastewater Utilities(SB 272 Enrolled)Summary – Despite the name, SB 272 only applies to private utilities. The bill creates a process whereby customers may petition the Florida Public Service Commission (FPSC, PSC, or commission) to require compliance with secondary water quality standards. If a utility fails to comply with commission orders, the process described by this bill could result in probation or revocation of the utility’s certificate of authority. The bill provides petition criteria and factors the commission must consider in its review of the petition and the action it may take to dispose of the petition. February 4 - Delete everything amendment to SB 272 makes the following changes:Refines and clarifies the petition processRequires compliance with federal and state secondary water and wastewater criteria, removing references to local or water management districtsReplaces suspension of a certificate with allowing the commission to place a certificate on probationProvides exceptions to the 3 year time frame, such as those which are outside the control of the utilityRequires DEP to set by rule acceptable secondary water quality and wastewater service standardsAllows companies to recover its costs for solutions required by the commissionsProvides tolling from customers filing a petition to revoke a certificateProvides penalties including denial of all or part of a rate increaseImpact on SEFLUC – only impacts private utilities. However, the precedent of allowing the legislature to restrict utility rates is something to monitor as it could someday expand to public utilities as well.Updates:SB 272 February 6 – Committee Substitute incorporating amendment filedMarch 13 – Favorable with CS by AppropriationsMarch 17 – Committee Substitute 3 filed with the following changes, most notably deleting reference to quality of wastewater service as criterion for rate fixing:Defines customerClarifying petition processDeleting requirement that commission review petition and within 10 days advise customer if additional information is needed and how to cure petitionDeleting requirement to place utility’s certificate on probationary status if not in complianceDeleting wastewater rate fixing provisions in 367.0812Deleting requirement that DEP establish secondary wastewater service standards Adding funding provision for salary of three new employees to Florida Public Service CommissionMarch 18 – Placed on Senate Calendar, on 2nd readingApril 25 – Amendment Adopted providing additional clarification of petition process, Engrossed Text FiledAmendment clarifies utility is not prohibited from filing a rate case until after petition is determined in compliance with statute. Previously, utility was prohibited from filing rate case upon commission’s receipt of letter from customers stating intent to file a petition.April 28 – Passed SenateApril 30 – Passed House; Enrolled Text FiledSB 536/HB 601 – Reclaimed Water (SB 536 - Enrolled)Summary: Requires the Department of Agriculture and Consumer Services and the Department of Environmental Protection to conduct a study in cooperation with the water management districts on the expansion of the beneficial use of reclaimed water, stormwater, and excess surface water and to submit a report based upon such study. Also requires the report to include the following:Factors that prohibit or complicate the expansion of the beneficial use of reclaimed water and recommend how factors can be mitigated or eliminated;Identify constraints on reclaimed water expansion, including utility rate structures;Identify areas of the state where traditional water supply sources are limited;Recommend permit incentives, such as long term permits;Determine feasibility, benefit, and cost estimate of infrastructure needed for regional storage features for reclaimed water The report must be submitted to the Governor and Legislature by December 31, 2015.Impact on SEFLUC: SEFLUC may want to assist agencies with the study. Updates:SB 536March 20 – Environmental Preservation and Conservation Subcommittee passed Committee Substitute to SB 536 expanding scope of study March 21 – Committee Substitute 2/SB536 filed removing the word “including” to clarify reclaimed water does not include stormwater and excess surface waterApril 2 - Amendment to CS2 SB 536 requiring the entities “in coordination with the stakeholders” to conduct the study and submit the report April 3 – Read Second Time, Amendment Adopted, Ordered Engrossed; Placed on Third Reading Amendment eliminated references to DACS and 5 WMD and provides DEP, in coordination with the stakeholders, shall conduct the study and submit a report. The stakeholders are not defined.April 11 – Read Third Time, Clarifying Amendment Adopted, Passed SenateApril 28 – SB 536 substituted for HB 601; SB 536 passed House; Enrolled Text filed.HB 703 / SB 1464 – Relating to Environmental Regulation(HB 703 / SB 1464 - Died in Committees)(HB 7023 - Enrolled bill incorporated 2 year permit extension provided in HB 703/SB 1464)Summary: Comprehensive permitting bills died in committees. However, HB 7023 was amended to extend any building permit or ERP permit with an expiration date between January 1, 2014 and January 1, 2016, for a period of 2 years, under certain conditions. Permit holders must notify the authorizing agency in writing by December 31, 2014 of any intent to use the extension. SB 1632 and HB 1237 - Special Districts(SB 1632 – Enrolled)Summary:CS/CS/SB 1632 (Stargel) – Omnibus special district bill that reorganizes, renumbers and makes numerous technical and conforming changes to the provisions in Chapter 189 of the Florida Statutes. Requires special districts to have websites, amends reporting requirements and circumstances for removal of district officers by the governor and provides for the state code of ethics for public officers and public employees to apply to the districts. The bill outlines a process by which the Joint Legislative Auditing Committee (JLAC) and the Department of Economic Opportunity (DEO) may enforce reporting and other requirements when special districts fall out of compliance with their obligations or become inactive. Subsequent to notifying DEO, relevant legislators and the local general-purpose government, and subsequent to a public hearing, JLAC may request that DEO file a petition for enforcement with the Circuit Court of Leon County. Additionally, the bill: Requires special districts to maintain a website that offers the public specified information; Requires special districts to give the website address to the DEO for publication on its website; Amends the definition of agency in the Code of Ethics to specifically include special districts; Redefines the term special district in s. 189.403, F.S.; Removes provisions concerning a special district’s application to amend its charter; Amends the circumstances under which the DEO may declare a special district inactive; Requires the DEO to notify the chair of the county legislative delegation and the Legislative Auditing Committee; Prohibits inactive districts from collecting taxes, fees, and assessments; Changes the required education for new special district members; Revises the provisions concerning the failure to file certain reports; Requires administrative fees to be placed into the Operating Trust Fund; and Requires public hearings concerning certain noncomplianceImpact on SEFLUC:Will affect any special district members Update:April 7 – In AppropriationsApril 23 – Committee Substitute Text (C3) Filed incorporating the following amendments: Provides that special district fees collected by the Department of Economic Opportunity will continue to be deposited in the department’s Grants and Donations Trust Fund; and Provides that any downtown development authority that was established before the effective date of the 1968 constitution and has its millage approved by a municipality is an independent special taxing district. Authorizes the governing body of the municipality to levy an additional ad valorem tax on all real and personal property in the downtown district to finance the operations of the downtown development authority. The ad valorem tax levied for the authority is in addition to regular ad valorem taxes and the combined levy may not exceed the maximum levy provided by the constitution.April 25 – Amendment adopted; Passed Senate; Engrossed Text FiledAprl 28 – Passed House; Enrolled Text FiledFAILED BILLSSB 1576/ HB 1313 -Springs Legislation (Died in Messages)Summary:Despite very little funding by the Senate Appropriations, the Senate passed SB 1576. However, HB 1313 was never heard by a house committee and the Senate Bill died in messages. Interestingly, the House provide significantly more funding for springs projects despite not supporting the springs legislation. HB 357/ SB 1050 – Water and Wastewater Utility Systems (HB 357 -Laid on Table in Favor of SB 272)Summary: HB 357 was laid on the table in favor of SB 272. HB 357 was similar to SB 252, but did not provide for the petition process. SB 636 –Public Utility Suppliers(Died in committee)Summary: Requires certain public utilities, defined as regulated companies, to submit a plan for increasing procurement from businesses controlled and operated by women, minorities, and service-disabled veterans; HB 813/SB 1248 – Water and Wastewater Utilities(Died in Committees)Summary:"Ratepayer Representation Act" prohibits county from providing water or sewer services in unincorporated areas covered by agreement with municipality; authorizes county to services when agreement does not provide expiration date; specifies that corporate powers of municipality do not apply to unincorporated areas of county without county's express consent; limits amount of water & sewer utility rates, fees, charges, & surcharges that municipality may impose on consumers outside of municipality's boundaries or ratepayers in unincorporated areas of county; requires PSC approval of such rates, fees, charges, & surcharges; authorizes ratepayers in unincorporated areas to petition PSC for determination whether rates, fees, & charges imposed by municipality are just & equitable; provides that PSC has regulatory authority over municipality that provides water or wastewater utility service in unincorporated areas of county; requires PSC approval before municipality purchases certain water or wastewater facilities.?SB 910/ HB 1107– Utility Projects(Died in Committees)Summary:?"Utility Cost Containment Bond Act" - creates an alternative method for financing the costs of certain utility projects using utility cost containment bonds. HB 1055/ SB 1306 –Onsite Sewage Treatment and Disposal Systems(Died in Committees) Summary :Bills providing that an existing onsite sewage treatment and disposal system is not considered abandoned if the Department of Environmental Protection approves the use of all or a portion of the existing onsite sewage treatment and disposal system as an integral part of a sanitary sewer systemSB 1160/ HB 1113 – Onsite Sewage Treatment and Disposal Systems(Died waiting for third reading)Summary:Extends the 2016 deadline to halt the land application of septic tank waste, established in SB 550 (2010) by 2 yearsHB 1051/ SB 1318 – Public Records/Public Private Partnerships(Died waiting for 2nd Reading in House)Summary:The bill creates an exemption from public record and public meeting requirements for unsolicited proposals for P3 projects for public facilities and infrastructure. CS/HB 1355 and SB 1626 - Administrative Procedures (Died in Committees)Summary:The bill amends 8 provisions of the APA to enhance the opportunities for substantially affected parties to challenge rules, and be awarded attorney fees in certain successful administrative matters. ................
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