1. Rulemaking for Central Florida Coordination Area Coordinated Rulemaking by the South Florida, St. Johns River and Southwest Florida Water Management Districts May 4, 2007

2. Presentation Overview Review of general principles in CFCA rulemaking Rulemaking steps & current status Summary of significant changes in workshop drafts

3. Central Florida Coordination Area (CFCA)

4. CFCA Regulatory Component Limits groundwater allocations to a maximum of that needed to meet 2013 demands. For those utilities/similar applicants that commit to building SWS projects to supply water demands beyond 2013, provides opportunity for a groundwater allocation up to 2013 demand, for 20 years. Utilities/similar applicants that proceed to building SWS projects but do not complete by 2013 due to factors beyond their control may seek additional groundwater allocations only on a temporary basis. Interim Phase - Key concepts in current rulemaking

5. CFCA Regulatory Component (Cont.) Interim Phase - Key concepts in current rulemaking If SWS development is infeasible for all increase above 2013 demand, applicant may obtain up to 20-year if it: Maximizes use of SWS for as much of increase as is feasible Uses SWS for remainder of increase when provided by others to extent feasible

6. CFCA Regulatory Component (Cont.) Interim Phase - Key concepts in current rulemaking Term of permit limited to 2013 if applicant does not develop SWS or use SWS to meet as much of the increase above its 2013 demand as possible.

7. Key Aspects of Permitting that Remain Unchanged 2013 groundwater allocation - efficient utilization, water conservation and reuse of reclaimed water. An applicant must avoid or mitigate adverse impacts that otherwise would occur. Specific avoidance/mitigation will be different for each permittee, depending on local conditions. Allocations and permit conditions are subject to revision based on impact monitoring and/or 5- year compliance reports.

9. Rulemaking Steps 1 st Rule development workshop – November 29, 2006, at FSAWWA Conference/Orlando 2 nd Rule development workshop (initial workshop draft presented) – December 19, 2006, at Haines City Commission Chambers 3 rd Rule development workshop – February 20, 2007 at Orange County Utilities/Orlando CFCA discussion/update at February & March 2007 WMD Board meetings

10. Rulemaking Steps Revised workshop drafts provided via e-mail and on websites – 4/27/07 4 th Rule development workshop – May 4, 2007 Comments on current draft requested by May 18, 2007 Notice of proposed rule anticipated to be considered at June 2007 WMD Board meetings

11. Summary of Revisions to Workshop Drafts New definitions added Revised and deleted definitions New intent language on CFCA Rule review added Refinement of amendments

12. New Definitions for CFCA Supplemental Water Supply – surface water, stormwater, and saltwater. Brackish groundwater may be considered a Supplemental Water Supply if it can be developed in a manner that will not cause or contribute to harmful impacts from cumulative groundwater withdrawals in the Central Florida Coordination Area.

13. New Definitions for CFCA Brackish Groundwater – groundwater in the Lower Floridan Aquifer that has chloride concentrations at or above 1000 milligrams per liter (mg/L) or requires desalinization to achieve usable quality without blending.

14. New Definitions for CFCA Saltwater – ground or surface water having chloride concentrations at or above 19,000 milligrams per liter (mg/L).

15. New Definitions for CFCA Demonstrated 2013 Demand – the quantity of water that an applicant establishes it will need to meet demands in 2013.

16. Revised Definitions for CFCA Due Diligence – Taking all actions that a reasonably prudent person would take to meet the schedule requirements in the permit for developing and using all required supplemental water supplies. Particular circumstances beyond the permittee's control will be considered in determining whether due diligence has been exercised.

17. Revised Definitions for CFCA Other Similar Applicant - an applicant, other than a Public water Supply Utility, whose projected water demand after 2013, will exceed its Demonstrated 2013 Demand. that proposes to withdraw ground water in the CFCA, seeks a permit duration extending beyond 2013, and proposes an increase in ground water withdrawals above its demonstrated 2013 demand, is subject to those requirements.

18. Deleted Definition for CFCA “ CFCA Alternative Water Supply” for purposes of additional permitting criteria within the CFCA are surface water, stormwater, and salt water. Brackish ground water sources may be considered an alternative water supply source if the source can be developed in a manner that will not cause or contribute to harmful impacts from cumulative ground water withdrawals in the CFCA.

19. Revised Intent Language The intent of the CFCA rules is to provide an interim regulatory framework for public water supply utilities and other similar users in the area to expeditiously implement CFCA Alternative Water Supply ("CFCA AWS") projects (as defined in Section 3.6 of the Basis of Review) and, pending the implementation of CFCA AWS, provide for the allocation of available ground water while employing avoidance and mitigation measures to prevent harm.

20. Revised Intent Language In this area, stress on the water resources is escalating because of rapidly increasing withdrawals of groundwater. The public interest requires protection of the water resources from harm. The CFCA rules address the public interest by providing an interim regulatory framework to allow for the allocation of available groundwater in the area, subject to avoidance and mitigation measures to prevent harm, and by requiring the expeditious implementation of Supplemental Water Supply projects.

21. Revised Intent Language (continued) This interim regulatory framework is one component of a comprehensive, joint water management district strategy for regional water resource management that also includes regional water supply planning, SWS project funding and water resource investigations and analysis that will result in a long-term approach for water supply within the CFCA.

22. New Provision Before December 31, 2012, the District shall evaluate whether to amend or repeal these interim CFCA regulations.

23. Refinement of Amendments Economic feasibility Requirement to use SWS when provided by others at a cost that is economically feasible The affordability of an increase in water rates for a Public Supply Utility's customers is a consideration in evaluating economic feasibility; however, an increase in water rates shall not, by itself, constitute economic infeasibility. [Impact to customers from water user rates is a consideration in evaluating economic feasibility: however, the fact that there may be an increase in water users rates to utility customers shall not, in itself, constitute economic infeasibility.]

24. CFCA Draft Rules Questions?