The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/SB 7040
INTRODUCER: Appropriations Committee on Agriculture, Environment, and General Government;
Environment and Natural Resources Committee; and Senator Harrell
SUBJECT: Ratification of the Department of Environmental Protection’s Rules Relating to
Stormwater
DATE: February 13, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Barriero Rogers EN Submitted as Comm. Bill/Fav
1. Reagan Betta AEG Fav/CS
2. Barriero Twogood RC Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 7040 ratifies the Department of Environmental Protection’s (DEP) revisions to the
stormwater rules within Chapter 62-330 of the Florida Administrative Code with several
changes, including:
 Clarifying provisions relating to grandfathered projects,
 Providing that entities implementing stormwater best management practices also regulated
under different provisions of law are not subject to duplicate inspections for the same
practices, and
 Allowing alternative treatment standards for redevelopment projects in areas with impaired
waters.
 Providing that a stormwater management system is presumed to not violate state water
quality standards if an applicant demonstrates its designs and plans meet performance
standards and has met other requirements under the revised rules; and
 Allowing an applicant to demonstrate compliance with the rule’s performance standards by
providing reasonable assurance through modeling, calculations, and supporting
documentation that satisfy the provisions of the revised rules.
As required by the Clean Waterways Act, the DEP and the water management districts initiated
rulemaking to update the stormwater design and operation regulations for environmental
resource permitting, including updates to the Environmental Resource Permit Applicant’s
BILL: CS/SB 7040 Page 2
Handbook. The proposed rules were developed to increase the removal of nutrients from
stormwater to protect the state’s waterways.
The Statement of Estimated Regulatory Costs developed by the DEP concluded that the
proposed rules will likely increase stormwater treatment costs by $1.21 billion (or $2,600 per
acre developed) in the aggregate within five years after the rules’ implementation. This amount
triggers the statutory requirement for the rule to be ratified by the Legislature before it may go
into effect.
The bill costs associated with implementing the proposed rule can be absorbed within existing
resources. See Section V., Fiscal Impact Statement.
The bill takes effect upon becoming a law.
II. Present Situation:
Legislative Ratification
A rule is subject to legislative ratification if it:
 Has an adverse impact on economic growth, private sector job creation or employment, or
private sector investment in excess of $1 million in the aggregate within five years after the
implementation of the rule;
 Has an adverse impact on business competitiveness, including the ability of persons doing
business in the state to compete with persons doing business in other states or domestic
markets, productivity, or innovation in excess of $1 million in the aggregate within five years
after the implementation of the rule; or
 Increases regulatory costs, including any transactional costs, in excess of $1 million in the
aggregate within five years after the implementation of the rule.1
If a rule requires ratification by the Legislature, the rule must be submitted to the President of the
Senate and Speaker of the House of Representatives no later than 30 days prior to the regular
legislative session. The rule may not go into effect until it is ratified by the Legislature.2
Statement of Estimated Regulatory Costs Requirements
A statement of estimated regulatory costs (SERC) is an analysis prepared by an agency before
the adoption, amendment, or repeal of a rule other than an emergency rule. A SERC must be
prepared by an agency for a proposed rule that:
 Will have an adverse impact on small businesses; or
 Is likely to directly or indirectly increase regulatory costs in excess of $200,000 in the
aggregate in the state within one year after the implementation of the rule.3
1
Section 120.541(2)(a), F.S.
2
Section 120.541(3), F.S.
3
Section 120.54(3)(b)1., F.S.
BILL: CS/SB 7040 Page 3
A SERC must include:
 An economic analysis showing whether the rule exceeds the thresholds requiring legislative
ratification;
 A good faith estimate of the number and types of individuals and entities likely to be required
to comply with the rule, and a general description of the types of individuals likely to be
affected by the rule;
 A good faith estimate of the cost to the agency, and to other state and local government
entities, of implementing and enforcing the proposed rule, including anticipated effects on
state or local revenues;
 A good faith estimate of the transactional costs (direct business costs) likely to be incurred by
individuals and entities required to comply with the requirements of the rule;
 An analysis of the impact on small businesses, small counties, and small cities; and
 A description of regulatory alternatives submitted to the agency and a statement adopting the
alternative or a statement of the reasons for rejecting the alternative in favor of the proposed
rule.4
Statement of Estimated Regulatory Costs for Chapter 62-330, F.A.C.
The DEP determined that a SERC was required for the revisions to the stormwater rules within
Chapter 62-330 of the Florida Administrative Code and prepared one in advance of rule
adoption.5 The DEP estimates the revised rules will increase stormwater treatment costs by
approximately $1.21 billion6 (or $2,600 per acre developed) for all expected development
projects within a five-year period from implementation.7 This includes lower cost regulatory
alternatives.8
4
Section 120.541(2), F.S.
5
See DEP, SERC: Chapter 62-330, F.A.C. (2023), available at
http://publicfiles.dep.state.fl.us/dwrm/draftruledocs/stormwater/noc/serc-template-updated.pdf.
6
Prior to receipt of lower cost regulatory alternatives (LCRAs), DEP estimated the revised rules would increase stormwater
treatment costs by $1.44 billion in the aggregate within five years from the rules’ implementation, or $1.486 billion when
including additional transactional costs (i.e., new requirements for system design, operation and maintenance, inspections,
and reporting) and costs related to the rules’ new requirements for dam systems. Id. at 2-3. DEP estimates the LCRAs will
lower stormwater treatment costs (excluding transactional and dam system costs) by approximately 16 percent from the
original estimate. Id. at 10. Accordingly, DEP’s revised estimate for stormwater treatment costs under the proposed rules is
$1.21 billion. DEP, Presentation to the Florida Senate Committee on Environment and Natural Resources, 13 (Jan. 26,
2024), available at
https://www.flsenate.gov/Committees/Show/EN/MeetingPacket/6001/10561_MeetingPacket_6001.6.23.pdf; DEP,
Rulemaking Update: Stormwater | Chapter 62-330, F.A.C., Environmental Resource Permitting, 2 (2023), (on file with the
Senate Committee on Environment and Natural Resources).
7
DEP, Presentation to the Florida Senate Committee on Environment and Natural Resources, 13 (Jan. 26, 2024), available
at https://www.flsenate.gov/Committees/Show/EN/MeetingPacket/6001/10561_MeetingPacket_6001.6.23.pdf; DEP,
Rulemaking Update: Stormwater | Chapter 62-330, F.A.C., Environmental Resource Permitting at 2 (2023); DEP, SERC:
Chapter 62-330, F.A.C. at 2, 10.
8
DEP, Presentation to the Florida Senate Committee on Environment and Natural Resources at 13.
BILL: CS/SB 7040 Page 4
Water Quality and Nutrients
Nutrient pollution and the excessive accumulation of nitrogen and phosphorus in water is one of
the most widespread, costly, and challenging environmental problems.9 In Florida, 35 percent of
waterbodies are impaired for nutrients and 87 percent of counties have nutrient impaired waters
within their boundaries.10
The nutrients nitrogen and phosphorus are a natural part of aquatic ecosystems.11 They support
the growth of algae and aquatic plants, which provide food and habitat for fish, shellfish, and
smaller organisms that live in water. However, the presence of too much nitrogen and
phosphorus can cause algae to grow faster than ecosystems can handle. These algal blooms can
harm water quality, food resources, and habitats, and decrease the oxygen that fish and other
aquatic life need to survive. Algal blooms can also be harmful to humans because they produce
elevated toxins and bacterial growth that can make people sick if they come into contact with
polluted water, consume tainted fish or shellfish, or drink contaminated water.12 Nutrient
pollution in ground water—used by millions of people in the United States as their drinking
water source—can be harmful even at low levels.13 Infants are especially vulnerable to a
nitrogen-based compound called nitrates in drinking water.14 One of the primary sources of
excess nitrogen and phosphorus is stormwater runoff.15 This runoff typically traverses
impervious surfaces, such as concrete and asphalt, flowing directly into waterbodies or storm
drains without the benefit of natural filtration through soil and vegetation or processing by a
water treatment facility.16 Human activities frequently exacerbate the problem by introducing
nitrogen and phosphorus pollutants derived from fertilizers, yard and pet waste, and certain soaps
and detergents.17
Impaired Waters
Under section 303(d) of the federal Clean Water Act, states must establish water quality
standards for waters within their borders and develop a list of impaired waters that do not meet
9
U.S. Environmental Protection Agency (EPA), Basic Information on Nutrient Pollution,
https://www.epa.gov/nutrientpollution/problem (last visited Jan. 26, 2024).
10
DEP, Rulemaking Update: Stormwater | Chapter 62-330, F.A.C., Environmental Resource Permitting at 2.
11
EPA, Nutrient Pollution: The Problem, https://www.epa.gov/nutrientpollution/problem (last visited Jan. 26, 2024).
12
Id.
13
Id.
14
Id.
15
EPA, Nutrient Pollution: Sources and Solutions, https://www.epa.gov/nutrientpollution/sources-and-solutions (last visited
Jan. 26, 2024). Other sources of excess nitrogen and phosphorus include agriculture, wastewater, fossil fuels, and fertilizers.
Id.
16
EPA, Nutrient Pollution: Sources and Solutions: Stormwater, https://www.epa.gov/nutrientpollution/sources-and-
solutions-stormwater (last visited Jan. 26, 2024)
17
Id.
BILL: CS/SB 7040 Page 5
the established water quality standards.18 States must also develop a list of threatened waters that
may not meet water quality standards in the following reporting cycle.19
Due to limited funds and the wide variety of surface waters in Florida, the DEP sorted those
waters into 29 major watersheds, or basins, and further organized them into five basin groups for
assessment purposes.20 If the DEP determines that any waters are impaired, the waterbody must
be placed on the verified list of impaired waters and a total maximum daily load (TMDL) must
be calculated.21 A TMDL is a calculation of the maximum amount of a pollutant that a
waterbody can receive and still meet water quality standards.22 A waterbody may be removed
from the verified list at any time during the TMDL process if it attains water quality standards.23
If the DEP determines that a waterbody is impaired but further study is needed to determine the
causative pollutants or other factors contributing to impairment before the waterbody is placed
on the verified list, the waterbody will be placed on a statewide comprehensive study list.24
Basin Management Action Plans (BMAPs)
BMAPs are one of the primary mechanisms the DEP uses to achieve TMDLs. BMAPs are plans
that address the entire pollution load, including point and nonpoint discharges,25 for a watershed.
There are currently 34 adopted BMAPs in Florida.26
Producers of nonpoint source pollution included in a BMAP must comply with the established
pollutant reductions by implementing appropriate best management practices (BMPs) or
conducting water quality monitoring.27 A nonpoint source discharger may be subject to
enforcement action by the DEP or a water management district for failure to implement these
requirements.28
18
EPA, Overview of Identifying and Restoring Impaired Waters under Section 303(d) of the CWA,
https://www.epa.gov/tmdl/overview-identifying-and-restoring-impaired-waters-under-section-303d-cwa (last visited Jan. 26,
2024); 40 C.F.R. 130.7. Following the development of the list of impaired waters, states must develop a total maximum daily
load for every pollutant/waterbody combination on the list. A total maximum daily load is a scientific determination of the
maximum amount of a given pollutant that can be absorbed by a waterbody and still meet water quality standards. DEP,
Watershed Evaluation and Total Maximum Daily Loads (TMDL) Section, https://floridadep.gov/dear/water-quality-
evaluation-tmdl/content/total-maximum-daily-loads-tmdl-program (last visited Jan. 26, 2024).
19
Id.
20
DEP, Assessment Lists, https://floridadep.gov/dear/watershed-assessment-section/content/assessment-lists (last visited Jan.
26, 2024).
21
Id.; DEP, Verified List Waterbody Ids (WBIDs), https://geodata.dep.state.fl.us/datasets/FDEP::verified-list-waterbody-ids-
wbids/about (last visited Jan. 26, 2024); section 403.067(4), F.S.
22
Section 403.067(6)(a), F.S. See also 33 U.S.C. § 1251, s. 303(d) (the Clean Water Act).
23
Section 403.067(5), F.S.
24
Section 403.067(2), F.S.; ch. 62-303.150, F.A.C.
25
“Point source” is defined as any discernible, confined, and discrete conveyance, including any pipe, ditch, channel, tunnel,
conduit, well, discrete fissure, container, rolling stock, concentrated animal feeding operation, landfill leachate collection
system, vessel or other floating craft from which pollutants are or may be discharged. Nonpoint sources of pollution are
sources of pollution that are not point sources. Fla. Admin. Code R. 62-620.200(37).
26
DEP, Basin Management Action Plans (BMAPs), https://floridadep.gov/dear/water-quality-restoration/content/basin-
management-action-plans-bmaps (last visited Jan. 26, 2024).
27
Section 403.067(7)(b)2.g., F.S. For example, BMPs for agriculture include activities such as managing irrigation water to
minimize losses, limiting the use of fertilizers, and waste management.
28
Section 403.067(7)(b)2.h., F.S.
BILL: CS/SB 7040 Page 6
The DEP may establish a BMAP as part of the development and implementation of a TMDL for
a specific waterbody. First, the BMAP equitably allocates pollutant reductions to individual
basins, to all basins as a whole, or to each identified point source or category of nonpoint
sources.29 Then, the BMAP establishes the schedule for implementing projects and activities to
meet the pollution reduction allocations.30
BMAPs must include five-year milestones for implementation and water quality improvement
and an associated water quality monitoring component to evaluate the progress of pollutant load
reductions.31 Every five years an assessment of progress toward these milestones must be
conducted and revisions to the plan made as appropriate.32
Each BMAP must also include:
 The management strategies available through existing water quality protection programs to
achieve TMDLs;
 A description of BMPs adopted by rule;
 For the applicable five-year implementation milestones, a list of projects that will achieve the
pollutant load reductions needed to meet a TMDL or other established load allocations,
including a planning-level cost estimate and an estimated date of completion;
 A list of regional nutrient reduction projects submitted by the Department of Agriculture and