1. Rule 62-40, F.A.C. – What is it? The Water Resource Implementation Rule (State Water Policy). Required by Sec. 373.036, F.S. Goals, objectives and guidance for DEP and WMDs for programs, rules and plans related to water resources. Amendments not effective until after next legislative session following rule adoption.

2. Rule 62-40, F.A.C. – How is it used? Key tool for DEP oversight of WMDs. WMD rules must be consistent with Rule 62-40, F.A.C.

3. Rule 62-40, F.A.C. - Reclaimed Water Reclaimed Water Policy Workgroup (DEP, WMD, FWEA, local gov’t, etc.) Overarching Goal: “ Optimize the use and continued development of reclaimed water as an alternative water supply to the extent environmentally, technically, and economically feasible in order to meet water supply demands.”

4. Rule 62-40, F.A.C. - Reclaimed Water Impact Offset/Substitution Credits HB 639 (2012) requires DEP to initiate rulemaking by Oct.1, 2012 to incorporate criteria for consideration of offsets/credits in consumptive use permitting. WMD to initiate rulemaking to incorporate by reference within 60 days of adoption.

5. Rule 62-40, F.A.C. - Reclaimed Water Definitions are critical! “ Impact Offset ” means the use of reclaimed water to reduce or eliminate a harmful impact that has occurred or would otherwise occur as a result of other surface water or groundwater withdrawals. (Sec. 373.250(5)(a)1, F.S.)

6. Rule 62-40 F.A.C. Reclaimed Water Impact Offset - Example Applicant applies for groundwater withdrawal Will cause saltwater intrusion Applicant proposes recharge with reclaimed water to create a saltwater barrier Permit for withdrawal issued conditioned on recharge with reclaimed water to prevent harmful saltwater intrusion IMPACT AVOIDED

7. Impact Offsets

8. Rule 62-40, F.A.C. - Reclaimed Water Impact Offset All Conditions of Issuance must be met after offset applied. Impact offset limited to duration of permit into which it is incorporated. Any changes require permit modification. Allocation may be renewed based on a continuing offset. Impact offsets can not be granted retroactively.

9. Rule 62-40, F.A.C. - Reclaimed Water Definitions are critical! “Substitution credit” means the use of reclaimed water to: replace all or a portion of an existing permitted use of resource-limited surface water or groundwater, allowing a different user or use to initiate a withdrawal or increase its withdrawal from the same resource-limited surface water or groundwater source provided that the withdrawal creates no net adverse impact on the limited water resource or creates a net positive impact if required by district rule as part of a strategy to protect or recover a water resource. (Sec. 373.250(5)(a)2, F.S.)

10. Rule 62-40 F.A.C. - Reclaimed Water Substitution Credit - Example City allowed to increase groundwater withdrawal to the extent that overall effect is neutral (or positive, if required) City provides golf course with reclaimed water; Golf course no longer uses groundwater Groundwater use in area capped. No additional quantities can be permitted.

11. Substitution Credits

12. Rule 62-40 F.A.C. Reclaimed Water Substitution Credit – Example cont. City allowed to increase groundwater withdrawal potentially up to 1 MGD. May be < 1 MGD depending on location/effect of withdrawal. Effect must be neutral/positive. Golf course changes from using 1 MGD of groundwater to 1 MGD of reclaimed water How much “credit” does City get?

13. Rule 62-40 F.A.C. - Reclaimed Water Substitution Credit Only applies where WMD has adopted rules establishing withdrawal limits within a defined geographic area. All Conditions of Issuance must be met after substitution credit applied. Substitution credit limited to duration of permit into which it is incorporated.

14. Rule 62-40 F.A.C. - Reclaimed Water Substitution Credit Amount of credit same or less than terminated withdrawal considering: Timing, location and amount of withdrawal to be terminated; Timing and location of proposed withdrawal by applicant; Hydrogeology of area; Whether a no net adverse impact or a net positive impact on limited water resource is required.

15. Rule 62-40 F.A.C. - Reclaimed Water Substitution Credit Reuse utility providing reclaimed water. One or more entities designated by the reuse utility. In all cases, user must demonstrate a need for the water. Credits cannot be transferred to other users, except in same manner as the permit itself. Who can use a Substitution Credit?

16. Rule 62-40 F.A.C. - Reclaimed Water Substitution Credit Changes require a modification. Renewals allowed if benefits of credit continue. Credits shall not be granted retroactively.

17. Rule 62-40, F.A.C. - Reclaimed Water Supplementation of Reuse Systems What is supplementation and why is it used?

18. Rule 62-40, F.A.C. - Reclaimed Water Supplementation of Reuse Systems Supplementation of a reclaimed water system means the addition of water from another source to reclaimed water supplies. Supplementation is a strategy that allows a utility to expand the customer base that can be reliably served and utilize more of the available reclaimed water.

19. Supplemental Supply Reclaimed Water Supply

20. Supplemental Supply Reclaimed Water Supply Customer Use Unused Water to Disposal

21. Supplemental Supply Reclaimed Water Supply Customer Use Unused Water to Disposal New Customer Use Supplemental Supply

22. Rule 62-40, F.A.C. - Reclaimed Water Supplementation of Reuse Systems Supplementation benefits: Allows more reclaimed water to be used. Discharges less reclaimed water to the environment. Minimizes the use of high- quality water sources for non- potable purposes.

23. Rule 62-40, F.A.C. - Reclaimed Water Supplementation & Permitting When determining whether supplementation is reasonable-beneficial and consistent with the ………......… public interest, a District shall: Recognize the benefits of supplementation. Consider the effectiveness of a utility’s management of its reclaimed water system.

24. Rule 62-40, F.A.C. - Reclaimed Water Supplementation & Permitting When supplementation of a reclaimed water system is proposed, WMD shall require a plan from the applicant. Plan will be used to: Evaluate a utility’s management of its reclaimed water system. Determine if requested quantity is needed to more effectively use reclaimed water supplies.

25. Rule 62-40, F.A.C. - Reclaimed Water Supplementation Plan Considerations Use of lower quality water sources. Pressure reduction. Designation of primary and secondary (interruptible) customers. The appropriate level of certainty to be provided during drought conditions.

26. Rule 62-40, F.A.C. - Reclaimed Water Supplementation Plan Considerations Financial incentives for voluntary use reductions. Reclaimed water interconnects with adjacent communities. Providing customers with written information supporting the need to conservatively use reclaimed water.

27. Rule 62-40, F.A.C. - Reclaimed Water Supplementation Plan Considerations Regulatory constraints or requirements on discharges. Demand management. Creation of additional storage. May include other measures identified by applicant or District.

28. Rule 62-40, F.A.C. In addition to reclaimed water provisions, what other changes are proposed for Rule 62-40, F.A.C.?

29. Rule 62-40, F.A.C. – Reg. Consistency Establish goal for consistency among WMDs in regulatory programs, except as needed for regional differences in water resources.

30. Rule 62-40, F.A.C. CUP Conditions of Issuance Basic Conditions of Issuance in Rule 40X-2.301, F.A.C. in all WMDs. Currently cover same general concepts, all different. Consistent Conditions of Issuance to be included in Rule 62-40, F.A.C. and all WMD rules.

31. Rule 62-40, F.A.C. - MFLs Require additional information on annual priority lists: reservations, waters affected by adjacent District withdrawals. Timing of recovery and prevention strategies (codify DEP guidance memo). Guidance on peer review process (CFWI).

32. Rule 62-40, F.A.C. - Water Planning Streamline and update. Revise form and content of Florida Water Plan. Include strategic plan as alternative to District Water Management Plan (DWMP) (reflect statutory change). Refine required content of DWMP.

33. Rule 62-40, F.A.C. Additional Rule Topics 10-Year Compliance Report (codify DEP guidance memo) Allocation Flexibility (codify DEP guidance memo to ensure consistency) Water Conservation (changes as needed to codify workgroup results)

34. Rule 62 -40 F.A.C. Issues for Input Handout of rule language for impact offsets and substitution credits Supplementation Other specific topics/concepts proposed for inclusion in Rule 62-40 F.A.C.