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<strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong> <strong>for</strong> <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area Rule<br />

Hazen and Sawyer <strong>for</strong> <strong>the</strong><br />

Southwest Florida Water Management District<br />

January 12, 2011<br />

44324-000T003.cdr


January 12, 2011<br />

Mr. Jay Yingling<br />

Senior Economist<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

2379 Broad Street (U.S. 41 South)<br />

Brooksville, Florida 34604-6899<br />

Dear Mr. Yingling:<br />

<strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong><br />

<strong>Costs</strong> <strong>for</strong> <strong>the</strong> Proposed <strong>Dover</strong> / <strong>Plant</strong><br />

<strong>City</strong> Water Use Caution Area Rule<br />

We are pleased to submit <strong>the</strong> <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong> (SERC) <strong>for</strong> <strong>the</strong> Proposed<br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area Rule. As required by Section 120.541, Florida<br />

Statutes (2010), “A statement <strong>of</strong> estimated regulatory costs shall include:<br />

(a) A good faith estimate <strong>of</strong> <strong>the</strong> number <strong>of</strong> individuals and entities likely to be required to<br />

comply with <strong>the</strong> rule, toge<strong>the</strong>r with a general description <strong>of</strong> <strong>the</strong> types <strong>of</strong> individuals likely<br />

to be affected by <strong>the</strong> rule.<br />

(b) A good faith estimate <strong>of</strong> <strong>the</strong> cost to <strong>the</strong> agency, and to any o<strong>the</strong>r state and local government<br />

entities, <strong>of</strong> implementing and en<strong>for</strong>cing <strong>the</strong> proposed rule, and any anticipated<br />

effect on state or local revenues.<br />

(c)<br />

A good faith estimate <strong>of</strong> <strong>the</strong> transactional costs likely to be incurred by individuals and<br />

entities, including local government entities, required to comply with <strong>the</strong> requirements <strong>of</strong><br />

<strong>the</strong> rule. As used in this paragraph, "transactional costs" are direct costs that are readily<br />

ascertainable based upon standard business practices, and include filing fees, <strong>the</strong> cost<br />

<strong>of</strong> obtaining a license, <strong>the</strong> cost <strong>of</strong> equipment required to be installed or used or procedures<br />

required to be employed in complying with <strong>the</strong> rule, additional operating costs incurred,<br />

and <strong>the</strong> cost <strong>of</strong> monitoring and reporting.<br />

(d) An analysis <strong>of</strong> <strong>the</strong> impact on small businesses as defined by s. 288.703, and an analysis<br />

<strong>of</strong> <strong>the</strong> impact on small counties and small cities as defined by s. 120.52.<br />

(e) Any additional in<strong>for</strong>mation that <strong>the</strong> agency determines may be useful.<br />

This SERC also follows <strong>the</strong> relevant requirements <strong>of</strong> Florida HB 1565 that took effect on November<br />

17, 2010. These requirements are that a SERC shall include an economic analysis<br />

showing whe<strong>the</strong>r <strong>the</strong> rule directly or indirectly:<br />

44324-000R4_DPC SERC transmittal letter Page 1 <strong>of</strong> 2


Mr. Jay Yingling<br />

January 12, 2011<br />

1. Is likely to have an adverse impact on economic growth, private-sector job creation or employment,<br />

or private sector investment in excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years<br />

after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule;<br />

2. Is likely to have an adverse impact on business competitiveness, including <strong>the</strong> ability <strong>of</strong> persons<br />

doing business in <strong>the</strong> state to compete with persons doing business in o<strong>the</strong>r states or<br />

domestic markets, productivity, or innovation in excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within<br />

5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule; or<br />

3. Is likely to increase regulatory costs, including any transactional costs, in excess <strong>of</strong> $1 million<br />

in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule.<br />

This SERC addresses <strong>the</strong>se requirements using <strong>the</strong> best available in<strong>for</strong>mation. The project<br />

team members were Grace Johns, Ph.D. as project manager who was assisted by Chris Meline,<br />

Caitlin Feikle, Marta Alonzo, P.E., Sikavas NaLampang, Ph.D. and Del Bottcher, Ph.D., P.E.,<br />

President <strong>of</strong> Soil and Water Engineering Technology, Inc.<br />

We thank you <strong>for</strong> your advice and assistance in preparing this SERC and <strong>for</strong> drafting <strong>the</strong> background<br />

and benefits discussions that were incorporated. We thank Yassert Gonzalez, Kevin<br />

Wills, Martha Butterworth and Deborah Kauffman <strong>of</strong> <strong>the</strong> District <strong>for</strong> providing Hazen and Sawyer<br />

<strong>the</strong> water use permit data and assisting in providing costs to <strong>the</strong> District associated with <strong>the</strong><br />

proposed rule. We thank Karen Lloyd and Ken Weber <strong>of</strong> <strong>the</strong> District <strong>for</strong> <strong>the</strong>ir prompt responses<br />

to our questions regarding <strong>the</strong> proposed rule. We thank Ron Cohen, District Senior Pr<strong>of</strong>essional<br />

Engineer, <strong>for</strong> his assistance in estimating <strong>the</strong> costs <strong>of</strong> installing flow meters and AMR devices,<br />

<strong>the</strong> cost <strong>of</strong> <strong>the</strong> AMR subscription service, <strong>the</strong> cost <strong>of</strong> alternative frost / freeze protection methods<br />

and <strong>the</strong> cost <strong>of</strong> <strong>the</strong> tailwater recovery system. We thank Robert Peterson <strong>of</strong> <strong>the</strong> District <strong>for</strong><br />

providing in<strong>for</strong>mation regarding public supply permittees. We thank William Orendorff, FARMS<br />

Program Manager, <strong>for</strong> assisting Hazen and Sawyer in preparing <strong>the</strong> costs associated with alternative<br />

frost / freeze protection methods o<strong>the</strong>r than water.<br />

Very truly yours,<br />

HAZEN AND SAWYER, P.C.<br />

Grace M. Johns, Ph.D.<br />

Senior Associate and Economist<br />

Enclosure<br />

c: File No. 44324-000<br />

44324-000R4_DPC SERC transmittal letter Page 2 <strong>of</strong> 2


Executive Summary<br />

This <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong> (SERC) follows <strong>the</strong> requirements <strong>of</strong> Section<br />

120.541, Florida Statutes (2010) regarding <strong>the</strong> proposed “<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water<br />

Use Caution Area” Rule. This SERC also follows <strong>the</strong> relevant requirements <strong>of</strong> Florida<br />

HB 1565 that took effect on November 17, 2010.<br />

ES.1<br />

Background and Summary <strong>of</strong> Proposed Rule<br />

The background <strong>for</strong> <strong>the</strong> proposed rules is summarized in <strong>the</strong> proposed Recovery Strate-<br />

gy (Chapter 40D-80, F.A.C.):<br />

“From January 3 through 13, 2010, <strong>for</strong> <strong>the</strong> first time since records have been kept, temperatures<br />

in eastern Hillsborough County and western Polk County dropped below 34<br />

degrees <strong>for</strong> 11 consecutive days. As a result, area farmers pumped large quantities <strong>of</strong><br />

groundwater to protect <strong>the</strong>ir crops. This combined pumping dropped <strong>the</strong> aquifer level 60<br />

feet, likely contributed to a large number <strong>of</strong> sinkhole occurrences, and caused more than<br />

750 neighboring groundwater wells to be damaged or to temporarily go dry.”<br />

More specifically, at least 132 sinkholes developed in <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> area – far exceeding<br />

<strong>the</strong> previous high <strong>of</strong> 27 sinkholes reported in <strong>the</strong> January 1985 freeze event.<br />

The extent <strong>of</strong> damage ranged from land subsidence in rural fields to destroyed homes<br />

and major roads. Data on <strong>the</strong> sinkholes with detailed reports indicate that 16 <strong>of</strong> <strong>the</strong> 132<br />

sinkholes reported to <strong>the</strong> District possibly involved damage to, or total loss <strong>of</strong>, structures<br />

– including an elementary school and <strong>the</strong> <strong>City</strong> <strong>of</strong> <strong>Plant</strong> <strong>City</strong>’s water tower. Statewide, <strong>the</strong><br />

average insurance payment per approved sinkhole claim involving damage or total loss<br />

to structures between 2006 and 2010 ranged from $102,000 to $149,000, depending on<br />

<strong>the</strong> type <strong>of</strong> claim. 1<br />

Sinkhole coverage is no longer required in Florida homeowner policies<br />

so those who do not retain such coverage may face high uninsured repair costs.<br />

Increasing trends in sinkhole <strong>for</strong>mation could significantly increase insurance premiums<br />

to residents and businesses in <strong>the</strong> region.<br />

Significant sinkhole damage to roadways occurred as a result <strong>of</strong> cold protection ground-<br />

water pumping during <strong>the</strong> freeze event. Hillsborough County reported investigating 37<br />

sinkholes related to <strong>the</strong> freeze event in roadways over which it had jurisdiction. Twenty-<br />

44324-000R4.docx<br />

1 Florida Office <strong>of</strong> Insurance Regulation, Report on Review <strong>of</strong> <strong>the</strong> 2010 Sinkhole Data Call. Novem-<br />

ber 8, 2010.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE ES-1<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

five <strong>of</strong> <strong>the</strong> 37 investigations required repairs totaling over $3 million in cost. The costs <strong>of</strong><br />

<strong>the</strong> repairs include fixing <strong>the</strong> sinkholes only and do not include <strong>the</strong> costs <strong>of</strong> repaving <strong>the</strong><br />

damaged roads. Portions <strong>of</strong> Interstate 4 and US Highway 92, both major roadways in <strong>the</strong><br />

area, were also damaged and closed to traffic during repairs. The 3 east-bound lanes <strong>of</strong><br />

Interstate 4 were closed to traffic <strong>for</strong> four days causing significant traffic and commuting<br />

delays. The Florida Department <strong>of</strong> Transportation estimates damages to federally aided<br />

roadways in <strong>the</strong> region to be approximately $1.051 million.<br />

The total cost to repair or replace wells and/or pumps damaged as a result <strong>of</strong> <strong>the</strong> cold<br />

protection ground water pumping was approximately $1.2 million. Well repair costs are<br />

generally paid by water use permittees. For those residents whose wells were damaged<br />

outside <strong>the</strong> area where well damage investigation and repair (mitigation) conditions were<br />

applied to permits, about 31 percent <strong>of</strong> <strong>the</strong> wells were out-<strong>of</strong>-service <strong>for</strong> three days or<br />

less, 48 percent were out-<strong>of</strong>-service <strong>for</strong> 4 to 7 days, 17 percent were out-<strong>of</strong>-service <strong>for</strong> 8<br />

to 11 days and 4 percent <strong>for</strong> more than 11 days. “Days-out-<strong>of</strong>-service” data <strong>for</strong> damaged<br />

wells inside <strong>the</strong> mitigation area are not available but <strong>the</strong>ir out-<strong>of</strong>-service durations<br />

are likely to be somewhat shorter because <strong>the</strong> investigations are assigned to responsible<br />

permittees as quickly as possible.<br />

Chapter 373, F.S., and District rules provide that use <strong>of</strong> water under a water use permit<br />

must be <strong>for</strong> a reasonable-beneficial use, not interfere with any presently existing legal<br />

use <strong>of</strong> water and be consistent with <strong>the</strong> public interest. Water use that damages existing<br />

domestic wells interferes with <strong>the</strong> existing legal use <strong>of</strong> water and pumpage that causes<br />

widespread <strong>for</strong>mation <strong>of</strong> sinkholes resulting in damage to homes and infrastructure is not<br />

in <strong>the</strong> public interest.<br />

Under Chapter 373, F.S. and current District rules, when <strong>the</strong> use <strong>of</strong> permitted groundwater<br />

<strong>for</strong> frost/freeze crop protection results in <strong>the</strong> impacts described above, <strong>the</strong> permitted<br />

quantity must be modified to bring <strong>the</strong> permitted water use into compliance with <strong>the</strong> law.<br />

In <strong>the</strong> case <strong>of</strong> frost / freeze protection <strong>for</strong> crops, a permit modification involves reducing<br />

<strong>the</strong> amount <strong>of</strong> groundwater permitted to be withdrawn or reducing <strong>the</strong> duration <strong>of</strong> pumpage.<br />

44324-000R4.docx<br />

Such a modification is likely to have immediate ramifications on <strong>the</strong> agricultural industry<br />

in <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> area. For example, if an existing strawberry permittee’s cold protection<br />

ground water quantities were reduced or limited in duration without alternative<br />

cold protection methods in place, <strong>the</strong> crop could be lost to cold damage. The loss could<br />

be up to $23,000 per acre <strong>of</strong> strawberries and <strong>the</strong>re are about 7,700 acres with permitted<br />

ground water quantities <strong>for</strong> strawberry production in <strong>the</strong> <strong>Dover</strong>/ <strong>Plant</strong> <strong>City</strong> area.<br />

Adoption <strong>of</strong> <strong>the</strong> proposed recovery strategy in 40D-80, F.A.C., will instead allow <strong>for</strong> a<br />

phased reduction in permitted cold protection water quantities. It will avoid <strong>the</strong> near term<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-2<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

impacts to <strong>the</strong> strawberry and o<strong>the</strong>r agricultural industries that rely on ground water use<br />

<strong>for</strong> cold protection until feasible alternative cold protection methods can be implemented<br />

by existing permittees. As part <strong>of</strong> <strong>the</strong> <strong>the</strong> proposed recovery strategy, <strong>the</strong> District will<br />

provide co-funding to permittees <strong>for</strong> equipment costs associated with alternative cold<br />

protection methods.<br />

Additionally, it is unlikely that any new requests <strong>for</strong> groundwater withdrawals <strong>for</strong><br />

frost/freeze protection could be permitted under current rule. To address this concern,<br />

District staff, at <strong>the</strong> direction <strong>of</strong> <strong>the</strong> Governing Board, provided recommendations that will<br />

result in a reduced need to use groundwater <strong>for</strong> cold protection and provide a mechanism<br />

<strong>for</strong> new permits to be issued. The recommendations also include expanding permit<br />

and hydrologic data collection.<br />

The proposed rule will create a <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area (DPC WUCA)<br />

in portions <strong>of</strong> Hillsborough and Polk counties <strong>for</strong> <strong>the</strong> following purpose.<br />

“By January 2020, to reduce groundwater withdrawals <strong>for</strong> frost/freeze protection by 20%<br />

from January 2010 quantities to lessen <strong>the</strong> potential that drawdown during a future frost /<br />

freeze event would lower <strong>the</strong> aquifer level at District Well DV-1 Suwannee below 10 feet<br />

NGVD.”<br />

The Minimum Aquifer Level at District well DV-1 is affected by local and regional<br />

groundwater withdrawals. In order to address <strong>the</strong> effects <strong>of</strong> <strong>the</strong>se withdrawals and <strong>the</strong><br />

variable hydrogeologic factors within <strong>the</strong> region, a Minimum Aquifer Level Protection<br />

Zone is established under <strong>the</strong> proposed rule. The Minimum Aquifer Level Protection<br />

Zone is defined as <strong>the</strong> area within <strong>the</strong> 30’ drawdown contour that resulted from <strong>the</strong> January<br />

2010 frost / freeze event.<br />

The proposed rule provides that new proposed withdrawals that fur<strong>the</strong>r impact <strong>the</strong> Minimum<br />

Aquifer Level Protection Zone would cause unacceptable impacts and will not be<br />

permitted without a Net Benefit. The proposed rule provides more specific guidance to<br />

applicants and <strong>the</strong>ir agents than <strong>the</strong> existing rule which would simply dictate that unacceptable<br />

impacts must not occur. Such language makes it easier <strong>for</strong> applicants and <strong>the</strong>ir<br />

agents to demonstrate reasonable assurance <strong>of</strong> compliance with rule criteria.<br />

44324-000R4.docx<br />

Ano<strong>the</strong>r issue highlighted by <strong>the</strong> January 2010 freeze event is that <strong>the</strong> current method<br />

<strong>for</strong> allocating well failure investigations and mitigations to permittees can cause significant<br />

financial hardship to newer permittees using cold protection quantities in <strong>the</strong> region.<br />

The current allocation methodology assigns well complaints to those with <strong>the</strong> most recent<br />

permit action, whe<strong>the</strong>r that is <strong>the</strong> issuance <strong>of</strong> a new permit or modification <strong>of</strong> an existing<br />

permit. Under <strong>the</strong> existing method, during <strong>the</strong> January 2010 freeze event, only 61<br />

<strong>of</strong> 504 permittees were required to investigate complaints and one permittee was as-<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-3<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

signed over 100 complaints. The proposed methodology relies more on <strong>the</strong> proportion<br />

<strong>of</strong> frost/freeze quantities permitted to <strong>the</strong> individual permittee. In a freeze event similar<br />

to <strong>the</strong> January 2010 event under <strong>the</strong> proposed methodology, it is estimated that <strong>the</strong><br />

complaints would be spread among 360 permittees and <strong>the</strong> most complaints assigned to<br />

an individual would be 16. This represents a significant reduction in potentially catastrophic<br />

costs <strong>for</strong> smaller and newer growers and more equitably allocates well mitigation<br />

among all permittees contributing to <strong>the</strong> problem.<br />

The major components <strong>of</strong> <strong>the</strong> proposed rule are as follows.<br />

Water Use Permittees and Applicants. All applications <strong>for</strong> ground water withdrawals<br />

<strong>for</strong> frost / freeze protection inside and outside <strong>the</strong> DPC WUCA will be evaluated <strong>for</strong> impacts<br />

to <strong>the</strong> proposed <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Minimum Aquifer Level Protection Zone. However,<br />

<strong>the</strong> existing impacts <strong>of</strong> permitted quantities on <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone will not be a basis <strong>for</strong> permit denial because <strong>the</strong> DPC WUCA Recovery Strategy<br />

is intended to achieve recovery to <strong>the</strong> established minimum level as soon as practicable.<br />

Existing Water Use Permittees. Applications <strong>for</strong> permit renewals or modifications with<br />

no proposed increase in permitted quantities or change in Use Type will be evaluated to<br />

determine compliance with <strong>the</strong> conditions <strong>for</strong> permit issuance set <strong>for</strong>th in Rule 40D-<br />

2.301, F.A.C., which is not proposed to be changed, and <strong>the</strong> Water Use Permit Basis <strong>of</strong><br />

Review in its entirety - as are all permit applications. When evaluating <strong>the</strong> reasonablebeneficial<br />

use <strong>of</strong> <strong>the</strong> water, emphasis will be given to reasonable water need, water conservation,<br />

use <strong>of</strong> alternative water supplies, and use <strong>of</strong> alternative frost/freeze protection<br />

methods. As noted above, <strong>the</strong> existing impacts <strong>of</strong> permitted quantities on <strong>the</strong> Minimum<br />

Aquifer Level Protection Zone will not be a basis <strong>for</strong> permit denial because <strong>the</strong> DPC<br />

WUCA Recovery Strategy is intended to achieve recovery to <strong>the</strong> established minimum<br />

level as soon as practicable.<br />

44324-000R4.docx<br />

"New Quantities" in <strong>the</strong> DPC WUCA means groundwater <strong>for</strong> frost/freeze protection that<br />

is not currently authorized to be withdrawn by <strong>the</strong> applicant or not currently authorized to<br />

be used <strong>for</strong> <strong>the</strong> intended use by <strong>the</strong> applicant. This includes applications to modify existing<br />

permits to increase quantities, and/or change <strong>the</strong> Permit Use Type (affecting only <strong>the</strong><br />

modified portion) and applications <strong>for</strong> an initial permit but does not include a full or partial<br />

transfer. A modification to change crops or plants grown under an Agricultural Permit<br />

Use Type Classification or to change withdrawal location or Use Type that is authorized<br />

by <strong>the</strong> terms <strong>of</strong> <strong>the</strong> permit or site certification at <strong>the</strong> time <strong>of</strong> issuance, is not a change in<br />

Permit Use Type provided that <strong>the</strong> quantities do not increase. In addition, when land is<br />

mined and <strong>the</strong> land will be returned to <strong>the</strong> Use Type operation authorized under <strong>the</strong> water<br />

use permit (WUP) that existed prior to mining, such activity does not constitute a<br />

change in Use Type or New Quantities.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-4<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

Applications <strong>for</strong> New Quantities. For applications where New Quantities <strong>for</strong> frost /<br />

freeze protection are requested, <strong>the</strong> resulting drawdown from withdrawals <strong>for</strong> frost /<br />

freeze protection shall not exceed 0.0 ft. at <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Minimum Aquifer Level<br />

Protection Zone. Applications <strong>for</strong> new ground water quantities <strong>for</strong> frost / freeze protection<br />

inside and outside <strong>the</strong> DPC WUCA that impact <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone cannot be permitted. The proposed use shall only be permitted if:<br />

1. The proposed groundwater withdrawals do not impact <strong>the</strong> Minimum Aquifer Level<br />

Protection Zone; or,<br />

2. The applicant reduces or redistributes <strong>the</strong> withdrawals to eliminate any impacts<br />

so that <strong>the</strong> withdrawal can be permitted; or,<br />

3. The applicant demonstrates adequate alternative frost/freeze protection methods<br />

<strong>for</strong> <strong>the</strong> proposed use to eliminate any impacts so that <strong>the</strong> withdrawal can be permitted;<br />

or,<br />

4. The applicant implements a combination <strong>of</strong> (2) and (3) that does not result in an<br />

impact.<br />

Feasibility <strong>of</strong> Using Frost / Freeze Protection Alternatives to Water. The proposed<br />

rule includes a new requirement that certain water use permittees investigate <strong>the</strong> technical,<br />

economic and environmental feasibility <strong>of</strong> using alternatives to groundwater <strong>for</strong><br />

frost/freeze crop protection. This feasibility analysis is required <strong>of</strong> all applicants <strong>for</strong> permits<br />

with at least 100,000 gpd average annual daily water quantities <strong>for</strong> an activity that<br />

typically uses frost / freeze protection and has or proposes to have a groundwater withdrawal<br />

with <strong>the</strong> potential to impact <strong>the</strong> Minimum Aquifer Level Protection Zone.<br />

For <strong>the</strong> purposes <strong>of</strong> <strong>the</strong> DPC WUCA rule, <strong>the</strong> District considers strawberries, blueberries,<br />

nurseries (container and some field), citrus (ridge and flatwood) and tropical fish<br />

farms as those activities that typically require frost / freeze protection.<br />

Water Withdrawal Metering and Reporting. Metering <strong>of</strong> water withdrawals at all permitted<br />

water withdrawal points and <strong>the</strong> use <strong>of</strong> automated meter reading (AMR) devices<br />

will be required <strong>of</strong> permittees in <strong>the</strong> DPC WUCA with permitted ground water quantities<br />

that use or could use water <strong>for</strong> frost / freeze protection.<br />

44324-000R4.docx<br />

For all o<strong>the</strong>r individuals and entities with a water use permit <strong>for</strong> annual average daily<br />

ground water quantities greater than or equal to 100,000 gallons per day (gpd) in <strong>the</strong><br />

DPC WUCA, metering <strong>of</strong> all water withdrawals, but not <strong>the</strong> use <strong>of</strong> AMR devices, will be<br />

required under <strong>the</strong> proposed rule. The primary purpose <strong>of</strong> <strong>the</strong> additional withdrawal metering<br />

and reporting provisions is to improve <strong>the</strong> quality, timeliness and accuracy <strong>of</strong> av-<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-5<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

erage annual and frost freeze protection water use data to better correlate <strong>the</strong> relationships<br />

between pumpage and measured drawdown.<br />

Flow Meter Purchase and Installation. For permits existing as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong><br />

<strong>the</strong> rule, <strong>the</strong> District will provide <strong>for</strong> <strong>the</strong> flow meters on withdrawal points, inflow lines,<br />

catchment facilities, tailwater recovery or rainfall capture ponds and storage facilities.<br />

This provision applies to <strong>the</strong>se structures in existence prior to <strong>the</strong> effective rule date that<br />

are not equipped with and not required by o<strong>the</strong>r District rules to have a flow meter.<br />

Automatic Meter Reading Device Purchase, Installation and Data Collection. For<br />

permits requiring automatic meter reading (AMR) devices under <strong>the</strong> proposed rule, <strong>the</strong><br />

District will provide, install, replace, maintain and repair <strong>the</strong>se AMR devices <strong>for</strong> each flow<br />

meter that is not already so equipped. The District shall include <strong>the</strong>se devices in <strong>the</strong> District’s<br />

data collection and reporting service subscription at no cost to <strong>the</strong> permittee.<br />

Net Benefit. In <strong>the</strong> case where an applicant <strong>for</strong> New Quantities is constrained by impacts<br />

to <strong>the</strong> Minimum Aquifer Level Protection Zone, <strong>the</strong> applicant may choose to provide<br />

reasonable assurance by implementing one or more <strong>of</strong> <strong>the</strong> Net Benefit options in<br />

order to mitigate <strong>the</strong> predicted impacts. In order to provide a Net Benefit, <strong>the</strong> measures<br />

proposed by <strong>the</strong> applicant must <strong>of</strong>fset <strong>the</strong> predicted negative impact <strong>of</strong> <strong>the</strong> proposed<br />

withdrawal and also provide an additional positive effect on <strong>the</strong> Minimum Aquifer Level<br />

Protection Zone equal to or exceeding 20% <strong>of</strong> <strong>the</strong> predicted negative impact. For example,<br />

if <strong>the</strong> predicted drawdown is 1.0 ft., <strong>the</strong> mitigation must <strong>of</strong>fset <strong>the</strong> 1.0 ft. drawdown<br />

and provide ano<strong>the</strong>r 0.2 ft. (i.e., 20% <strong>of</strong> 1.0 ft.) <strong>of</strong> positive effect so that <strong>the</strong> result is a net<br />

improvement <strong>of</strong> 0.2 ft. There are two <strong>for</strong>ms <strong>of</strong> Net Benefit: Mitigation plus Recovery and<br />

Groundwater Replacement Credits.<br />

Assignment <strong>of</strong> Responsibility - Frost / Freeze Impacts. The method used by <strong>the</strong> District<br />

to assign permittees in <strong>the</strong> DPC WUCA <strong>the</strong> responsibility to investigate and resolve<br />

frost / freeze withdrawal-related well complaints is revised under <strong>the</strong> proposed rule. The<br />

intent is to improve fairness and more evenly distribute well complaints among permittees.<br />

44324-000R4.docx<br />

Well Complaint Mitigation. The mitigation activity required by <strong>the</strong> permittee and <strong>the</strong><br />

complainant under <strong>the</strong> proposed rule is, <strong>for</strong> <strong>the</strong> most part, <strong>the</strong> same as under current<br />

rule. One difference is that, under <strong>the</strong> proposed rule, if a complainant mitigates <strong>the</strong> well<br />

damage be<strong>for</strong>e <strong>the</strong> permittee investigates, <strong>the</strong>n <strong>the</strong> permittee is required to reimburse<br />

<strong>the</strong> complainant <strong>for</strong> <strong>the</strong> actual expenditures not to exceed $1,500 unless <strong>the</strong> permittee<br />

can demonstrate that it is not responsible <strong>for</strong> all or part <strong>of</strong> <strong>the</strong> cost.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-6<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

ES.2<br />

Number <strong>of</strong> Individuals and Entities Required to Comply with <strong>the</strong> Proposed<br />

Rule<br />

Water Use Permittees and Applicants inside <strong>the</strong> DPC WUCA<br />

The <strong>Dover</strong> and <strong>Plant</strong> <strong>City</strong> area, located between <strong>the</strong> <strong>City</strong> <strong>of</strong> Tampa and <strong>the</strong> <strong>City</strong> <strong>of</strong> Lakeland<br />

in Florida, is a mix <strong>of</strong> agricultural, residential and industrial land uses. <strong>Dover</strong> is an<br />

unincorporated area <strong>of</strong> Hillsborough County and <strong>Plant</strong> <strong>City</strong> is an incorporated city. This<br />

area is well-known <strong>for</strong> its valuable strawberry production and hosts <strong>the</strong> Annual Strawberry<br />

Festival each year.<br />

The proposed rule addresses <strong>the</strong> impacts <strong>of</strong> ground water withdrawals <strong>for</strong> frost /freeze<br />

protection on ground water levels in <strong>the</strong> DPC WUCA. The individuals and entities required<br />

to comply with <strong>the</strong> proposed rule are limited to those who have or who will apply<br />

<strong>for</strong> a water use permit from <strong>the</strong> Southwest Florida Water Management District and who<br />

have water uses or requested water quantities that meet specific criteria.<br />

There are 660 water use permits in <strong>the</strong> DPC WUCA that are associated with groundwater<br />

withdrawals. Most <strong>of</strong> <strong>the</strong>se permits, 88 percent, are <strong>for</strong> agricultural production including<br />

crop irrigation, tropical fish farms, and livestock watering. The remaining permits are<br />

<strong>for</strong> public supply, recreation / aes<strong>the</strong>tic, and industrial / commercial water uses. Most <strong>of</strong><br />

<strong>the</strong> water use permits in <strong>the</strong> DPC WUCA are located in ei<strong>the</strong>r <strong>the</strong> Nor<strong>the</strong>rn Tampa Bay<br />

WUCA or <strong>the</strong> Sou<strong>the</strong>rn WUCA.<br />

Water use permittees required to comply are those who have permitted ground water<br />

quantities <strong>for</strong> frost / freeze protection or who have uses that typically require frost /<br />

freeze protection or who have average daily permitted quantities greater than 100,000<br />

gpd. Activities that typically require frost / freeze protection include strawberries, blueberries,<br />

nurseries, citrus groves, and tropical fish farms.<br />

There are 547 existing water use permittees who will be required to comply with <strong>the</strong> proposed<br />

rule. Most <strong>of</strong> <strong>the</strong>se permittees, or 95 percent, use water <strong>for</strong> agricultural crop irrigation.<br />

The remaining permittees are tropical fish farms (7 permits), public supply (10 permits),<br />

industrial / commercial (6 permits) and recreation / aes<strong>the</strong>tic (4 permits).<br />

44324-000R4.docx<br />

There are 113 existing water use permittees who will not be required to comply with <strong>the</strong><br />

proposed rule. However, <strong>the</strong>y will need to comply if <strong>the</strong>y add or change crops or use<br />

types such that new water quantities <strong>for</strong> frost/freeze protection are requested. About 50<br />

percent <strong>of</strong> <strong>the</strong>se permittees use water <strong>for</strong> agricultural production.<br />

Most <strong>of</strong> <strong>the</strong> existing permittees who need to comply have permitted ground water withdrawals<br />

<strong>for</strong> frost / freeze quantities. Of <strong>the</strong> 547 existing water use permittees who will<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-7<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

need to comply with <strong>the</strong> proposed rule, 505 have permitted ground water withdrawals <strong>for</strong><br />

frost / freeze protection. Only 26 permits have no permitted quantities <strong>for</strong> frost / freeze<br />

protection but grow crops or fish that typically require frost / freeze protection.<br />

Most <strong>of</strong> <strong>the</strong> permittees required to comply with <strong>the</strong> proposed rule use ground water <strong>for</strong><br />

irrigating agricultural crops. The most common crops irrigated in <strong>the</strong> DPC WUCA are<br />

strawberries and citrus with 34 percent and 24 percent, respectively, <strong>of</strong> total acreage irrigated.<br />

Drip and low volume irrigation systems are <strong>the</strong> most commonly used methods to<br />

irrigate agricultural crops in <strong>the</strong> DPC WUCA. Sprinkler irrigation methods are most<br />

commonly used to irrigate golf courses, lawns, landscapes, cemeteries, parks, playgrounds,<br />

and sports fields in <strong>the</strong> DPC WUCA.<br />

The property acreage associated with agricultural permits in <strong>the</strong> DPC WUCA ranges<br />

from 0.7 acres to 1,771 acres per permit. The average property acreage per permit is 48<br />

and <strong>the</strong> median is 25. About one-fourth <strong>of</strong> <strong>the</strong> permits represent farm sizes from 25 to 50<br />

acres. Farms up to 10 acres in size comprise about 18 percent <strong>of</strong> <strong>the</strong> permits. Only one<br />

percent <strong>of</strong> <strong>the</strong> permits have a property acreage greater than 500 acres.<br />

The most common permitted non-irrigation water use in <strong>the</strong> DPC WUCA is <strong>for</strong> public water<br />

supply which includes a regional water supply system and personal sanitary use associated<br />

with residential communities, schools, and a single business or individual dwelling<br />

associated with <strong>the</strong> permit. The second most common non-irrigation water use is<br />

animal watering and cooling. The remaining non-irrigation water uses include fire protection;<br />

tropical fish farms; augmentation <strong>for</strong> environmental purposes; and general product<br />

manufacturing, among o<strong>the</strong>rs.<br />

The number <strong>of</strong> future applicants <strong>for</strong> new ground water withdrawals <strong>for</strong> frost / freeze protection<br />

in <strong>the</strong> DPC WUCA is not known. Given <strong>the</strong> number <strong>of</strong> water use permits issued<br />

over <strong>the</strong> past ten years and <strong>the</strong> amount <strong>of</strong> undeveloped land that could be developed in<br />

<strong>the</strong> future, it is likely that applicants will request new ground water quantities in <strong>the</strong> DPC<br />

WUCA. If <strong>the</strong>se applicants request ground water <strong>for</strong> uses that typically require frost /<br />

freeze protection, <strong>the</strong>n <strong>the</strong>y will be required to comply with <strong>the</strong> proposed rule.<br />

44324-000R4.docx<br />

Water Use Permittees and Applicants outside <strong>the</strong> DPC WUCA<br />

The number and locations <strong>of</strong> water use permit applicants outside <strong>the</strong> DPC WUCA whose<br />

requested ground water withdrawals <strong>for</strong> frost / freeze protection would impact <strong>the</strong> DPC<br />

Minimum Aquifer Level Protection Zone are not known. The extent to which New Quantities<br />

would impact <strong>the</strong> Zone will depend on <strong>the</strong> size and location <strong>of</strong> <strong>the</strong> requested withdrawal.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-8<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

ES.3<br />

Cost to <strong>the</strong> District and to Any O<strong>the</strong>r State and Local Government Entity<br />

The District will implement and en<strong>for</strong>ce <strong>the</strong> proposed rule. In addition, <strong>the</strong> District will<br />

provide <strong>for</strong> <strong>the</strong> flow meters at withdrawal points <strong>of</strong> existing permittees under certain conditions<br />

as specified in <strong>the</strong> proposed rule. The District will also install, maintain, repair<br />

and replace automatic meter reading (AMR) devices <strong>for</strong> those permittees required to<br />

have <strong>the</strong>se devices under <strong>the</strong> proposed rule. The District will purchase <strong>the</strong> annual subscription<br />

service that will collect <strong>the</strong> water flow and related data from <strong>the</strong> AMR devices.<br />

The total estimated cost to <strong>the</strong> District associated with <strong>the</strong> DPC WUCA Rule is comprised<br />

<strong>of</strong> a one-time cost <strong>of</strong> $1.8 million and an annual cost <strong>of</strong> $1.36 million as summarized<br />

in Table 3.1. Most <strong>of</strong> this cost is associated with <strong>the</strong> provision <strong>of</strong> automatic meter<br />

reading (AMR) devices and <strong>the</strong> collection <strong>of</strong> water flow and related data from <strong>the</strong>se devices.<br />

Based on previous experience, about 1.00 full-time-equivalent in District staff time during<br />

<strong>the</strong> first two years after <strong>the</strong> rule is adopted will be required to supervise and manage <strong>the</strong><br />

contractors’ installation and maintenance <strong>of</strong> <strong>the</strong> meters and <strong>the</strong> AMR devices. The types<br />

<strong>of</strong> staff positions that would provide this service include a project manager, a field technician<br />

and an administrative assistant. In addition, about 2.22 full-time-equivalents in<br />

District staff time will be required to manage <strong>the</strong> AMR data collection and o<strong>the</strong>r compliance<br />

responsibilities each year. The types <strong>of</strong> staff positions include field and data<br />

technicians.<br />

State and local government entities, as water use permit applicants or permittees, may<br />

incur costs associated with complying with <strong>the</strong> proposed rule, but will not incur costs to<br />

implement or en<strong>for</strong>ce <strong>the</strong> proposed rule. The proposed rule is not expected to have any<br />

significant effect on State or local government revenues.<br />

ES.4<br />

Transactional <strong>Costs</strong><br />

The actual incremental transactional costs to each water use permit applicant and permittee<br />

will depend on <strong>the</strong> following factors.<br />

●<br />

●<br />

Whe<strong>the</strong>r <strong>the</strong> water will be withdrawn <strong>for</strong> a use that typically needs frost / freeze<br />

protection;<br />

Whe<strong>the</strong>r <strong>the</strong> average daily permitted water quantity assigned to <strong>the</strong> permit or application<br />

request is at least 100,000 gpd;<br />

44324-000R4.docx<br />

●<br />

Whe<strong>the</strong>r or not <strong>the</strong> permit application is <strong>for</strong> groundwater withdrawals inside or<br />

outside <strong>the</strong> DPC WUCA; and,<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-9<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

●<br />

Whe<strong>the</strong>r or not <strong>the</strong> permitted withdrawal is located in <strong>the</strong> Nor<strong>the</strong>rn Tampa Bay<br />

WUCA or <strong>the</strong> Sou<strong>the</strong>rn WUCA.<br />

Chapter 4.0 Transactional <strong>Costs</strong> describes how <strong>the</strong> rule will impact water use permittees<br />

and applicants and provides estimated unit costs and estimated ranges <strong>of</strong> total costs to<br />

<strong>the</strong> permittee or applicant associated with each provision <strong>of</strong> <strong>the</strong> proposed rule. Applicants<br />

and permittees are encouraged to use <strong>the</strong>ir own situation and <strong>the</strong> in<strong>for</strong>mation and<br />

unit costs provided in this Chapter to obtain an understanding <strong>of</strong> how <strong>the</strong> proposed rule<br />

will impact <strong>the</strong>ir own operations. The costs <strong>of</strong> alternative frost / freeze protection methods<br />

o<strong>the</strong>r than water and <strong>the</strong> costs <strong>of</strong> alternative water sources will be fully or partially<br />

<strong>of</strong>fset by <strong>the</strong> avoided costs associated with ground water withdrawals.<br />

The activities that would incur transactional costs associated with <strong>the</strong> proposed DPC<br />

WUCA Rule are listed as follows. Only those individuals and entities who meet specific<br />

criteria would be expected to incur each cost as described in Chapters 1, 2 and 4 <strong>of</strong> this<br />

<strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

Cost to complete new supplemental <strong>for</strong>ms;<br />

Cost to purchase, install and maintain flow meters;<br />

Increased water use permit fee and <strong>the</strong> cost <strong>of</strong> more frequent permit renewals<br />

<strong>for</strong> Small General permittees with uses that typically require frost / freeze protection<br />

Cost to manually report to <strong>the</strong> District <strong>the</strong> amount <strong>of</strong> water withdrawn <strong>for</strong> those<br />

permittees who are not required to have automatic meter reading devices;<br />

Cost to prepare feasibility analysis <strong>of</strong> frost/ freeze protection methods o<strong>the</strong>r than<br />

water;<br />

Cost to use frost /freeze protection methods o<strong>the</strong>r than water; and,<br />

Cost <strong>of</strong> Alternative Water Sources.<br />

44324-000R4.docx<br />

A summary <strong>of</strong> <strong>the</strong> estimated costs associated with completing new <strong>for</strong>ms, water flow metering<br />

and reporting, and conducting a feasibility analysis <strong>of</strong> alternative frost / freeze protection<br />

methods is provided in Table ES.1. For each activity, <strong>the</strong> conditions under which<br />

compliance is required, <strong>the</strong> one-time or purchase / installation cost, and <strong>the</strong> annual O&M<br />

cost are provided. Additional discussion and detail regarding <strong>the</strong>se costs are provided in<br />

Chapter 4.0 and Chapter 6.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-10<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

Table ES.1<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> Associated with Forms, Metering, Data Collection and<br />

Feasibility Analysis <strong>of</strong> Proposed DPC WUCA Rule<br />

One-Time Labor or Purchase<br />

/ Installation Cost<br />

Activity Associated with Proposed<br />

Rule<br />

Increase in permit fee as<br />

Small General permittees renew<br />

and become General<br />

permittees<br />

Conditions When Compliance<br />

Required<br />

Low<br />

Mid-<br />

Point<br />

High<br />

Annual<br />

O&M<br />

Cost<br />

Existing Small General Permits<br />

in DPC WUCA typically using f/f<br />

protection $115 $115 $115 $0<br />

Increase in permit fee as new<br />

Small General applicants apply<br />

as General permittees<br />

Complete DPC WUCA Supplemental<br />

Application Form<br />

Complete Net Benefit Form<br />

Complete Water Replacement<br />

Credit Application<br />

Flow meter installation and<br />

maintenance<br />

Flow meter maintenance<br />

Manual reporting <strong>of</strong> flow meter<br />

data to District 12 times per<br />

year<br />

New applications submitted <strong>for</strong><br />

uses typically using f/f protection<br />

by those who are Small General<br />

permits under current rule $150 $150 $150 $0<br />

All permit applications in DPC<br />

WUCA $700 $1,450 $2,200 $0<br />

If applicant proposes a net benefit<br />

$700 $1,450 $2,200 $0<br />

If applicant proposes water replacement<br />

credits $700 $1,450 $2,200 $0<br />

New applications in DPC WUCA<br />

submitted after rule date typically<br />

using f/f protection or average<br />

quanitiy >/= 100,000 gpd $1,700 $2,892 $4,084 $46<br />

Existing Permits in DPC WUCA<br />

typically using f/f protection or<br />

average quanitiy >/= 100,000<br />

gpd $0 $0 $0 $46<br />

Permittees inside DPC WUCA<br />

and outside <strong>the</strong> NTB WUCA and<br />

SWUCA with at least 100,000<br />

gpd permitted quantity and no<br />

frost / freeze protection quantities $0 $0 $0 $1,056<br />

44324-000R4.docx<br />

Feasibility analysis <strong>of</strong> frost /<br />

freeze protection methods<br />

o<strong>the</strong>r than water<br />

(a) MALPZ stands <strong>for</strong> Minimum Aquifer Level Protection Zone.<br />

Uses that typically require f/f protection<br />

inside <strong>the</strong> DPC WUCA or<br />

outside if impact to MALPZ (a) $4,320 $4,320 $4,320 $0<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-11<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

A summary <strong>of</strong> <strong>the</strong> estimated costs associated with implementing methods to reduce impacts<br />

<strong>of</strong> frost / freeze withdrawals to <strong>the</strong> Minimum Aquifer Level Protection Zone is provided<br />

in Table ES.2. These methods would be implemented by growers and fish farm<br />

owners under certain conditions as specified in <strong>the</strong> proposed rule. For each method, <strong>the</strong><br />

conditions under which compliance is required and <strong>the</strong> annualized capital and O&M cost<br />

per farmed acre are provided. Additional discussion and detail regarding <strong>the</strong>se costs are<br />

provided in Chapter 4.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

Method<br />

Table ES.2<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> Associated with Implementing Methods to<br />

Reduce Impacts to <strong>the</strong> DPC Minimum Aquifer Level Protection Zone<br />

Annualized Cost per Farmed<br />

Acre (a)<br />

Implement alternative frost / freeze protection methods<br />

High tunnels – crops (b) $3,800 to $8,700<br />

High tunnels – fish ponds<br />

$78 per 100 square feet <strong>of</strong> pond<br />

Crop cloths $2,200 to $2,700<br />

Wind machines $366<br />

Alternative Water Sources<br />

(a)<br />

(b)<br />

(c)<br />

Tailwater recovery, including net<br />

income loss $590 to $3,500<br />

unless o<strong>the</strong>rwise noted<br />

Conditions When<br />

Compliance<br />

Required<br />

If feasible or if applicant<br />

chooses option in<br />

order to reduce requested<br />

withdrawal<br />

quantity to avoid<br />

MALPZ impacts (c)<br />

Research conducted by <strong>the</strong> University <strong>of</strong> Florida found that strawberry yields per acre increased significantly<br />

when grown under high tunnels.<br />

MALPZ stands <strong>for</strong> Minimum Aquifer Level Protection Zone.<br />

The estimated costs to water users <strong>of</strong> alternative water sources that might be used <strong>for</strong><br />

frost / freeze protection are summarized in Table ES.3. For each method, <strong>the</strong> conditions<br />

under which compliance is required and <strong>the</strong> capital and O&M cost per 1,000 gallons <strong>of</strong><br />

water produced or purchased are provided. These costs will be fully or partially <strong>of</strong>fset by<br />

<strong>the</strong> avoided costs associated with ground water withdrawals. Additional discussion and<br />

detail regarding <strong>the</strong>se costs are provided in Chapter 4.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong><br />

<strong>Regulatory</strong> <strong>Costs</strong>.<br />

44324-000R4.docx<br />

Existing aquaculture operations that use ground water <strong>for</strong> cold protection will be required<br />

to prepare a feasibility study to evaluate <strong>the</strong> economic, technical and environmental feasibility<br />

<strong>of</strong> using alternatives to ground water <strong>for</strong> frost/freeze protection. The permittee will<br />

be required to implement feasible alternatives. The cost to implement feasible alternatives<br />

will vary significantly due to <strong>the</strong> diverse nature <strong>of</strong> <strong>the</strong> aquaculture operations.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-12<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

Table ES.3<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> <strong>of</strong> Alternative Water Sources to Water Users<br />

Water Source<br />

Horizontal well - Cost per 1,000<br />

gallons <strong>of</strong> water produced<br />

Reclaimed water - Cost per<br />

1,000 gallons <strong>of</strong> water purchased<br />

Cost per 1,000 gallons<br />

<strong>of</strong> water produced or<br />

purchased<br />

Low<br />

High<br />

Conditions When<br />

Compliance Required<br />

$0.11 $0.65 If applicant chooses option in<br />

order to reduce requested<br />

$0.05 $2.15<br />

withdrawal quantity to avoid<br />

MALPZ impacts (a)<br />

(a)<br />

MALPZ stands <strong>for</strong> Minimum Aquifer Level Protection Zone.<br />

To provide flexibility to applicants requiring new groundwater quantities in a groundwater<br />

limited area, <strong>the</strong> applicant may be able to acquire permitted ground water using <strong>the</strong> Net<br />

Benefit provision <strong>of</strong> <strong>the</strong> proposed rule. Net Benefit options include obtaining historically<br />

used groundwater quantities that are retired; aquifer recharge; or obtaining groundwater<br />

mitigation credits as described in <strong>the</strong> proposed rule. The proposed rule revisions also<br />

provide flexibility to existing permittees with impacts on <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone. They may self-relocate <strong>the</strong>ir existing permitted quantities to ano<strong>the</strong>r location<br />

when it is in <strong>the</strong>ir best interest so long as <strong>the</strong> impacts are not increased, <strong>the</strong>re are no<br />

changes in ownership, <strong>the</strong> use type does not change and <strong>the</strong>re is no increase in quantities.<br />

An example is an agricultural operation that wishes to relocate to ano<strong>the</strong>r site because<br />

<strong>of</strong> changes in surrounding land uses.<br />

The proposed rule changes <strong>the</strong> method by which well complaints are assigned to water<br />

use permittees who are responsible <strong>for</strong> ground water withdrawals that affect <strong>the</strong>se wells.<br />

Relative to current rule, <strong>the</strong> change in <strong>the</strong> method is expected to result in <strong>the</strong> same<br />

number or more permittees being assigned well complaints and ei<strong>the</strong>r no change or a<br />

reduction in <strong>the</strong> average number <strong>of</strong> well complaints per permittee. Depending on <strong>the</strong><br />

frost / freeze event, some permittees who would not have been assigned a well complaint<br />

under current rule might be assigned a well complaint under <strong>the</strong> proposed rule.<br />

O<strong>the</strong>r permittees who would have been assigned multiple well complaints under current<br />

rule might be assigned fewer well complaints under <strong>the</strong> proposed rule.<br />

44324-000R4.docx<br />

ES.5<br />

Impacts to Small Businesses, Small Cities and Small Counties<br />

In 2008, <strong>the</strong> most recent year <strong>for</strong> which data are available, <strong>the</strong>re were about 5,941 business<br />

establishments in or near <strong>the</strong> DPC WUCA with 200 or fewer employees according<br />

to data from <strong>the</strong> U.S. Census. The total number <strong>of</strong> business establishments was 5,990.<br />

Thus, as much as 99 percent <strong>of</strong> business establishments in <strong>the</strong> DPC WUCA may be<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-13<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

“small businesses” as defined by Florida Statute. There are no small counties or small<br />

cities in <strong>the</strong> DPC WUCA.<br />

The District exempts most small uses <strong>of</strong> water from water use permitting requirements<br />

and many entities that are exempt may be small businesses. Small business, cities and<br />

counties whose intended facility or use does not exceed one or more <strong>of</strong> <strong>the</strong> following<br />

thresholds are exempt from water use permitting and are not affected by <strong>the</strong> proposed<br />

rule 2 :<br />

<br />

<br />

<br />

<br />

Total withdrawal capacity from any source or combined sources is greater than<br />

or equal to 1,000,000 gallons per day.<br />

The average annual daily withdrawal from any source or combined sources is<br />

greater than or equal to 100,000 gallons per day.<br />

Withdrawal is from a well having an outside diameter <strong>of</strong> 6 inches or more at <strong>the</strong><br />

surface.<br />

Withdrawal is from a surface water body and <strong>the</strong> outside diameter <strong>of</strong> <strong>the</strong> withdrawal<br />

pipe or <strong>the</strong> sum <strong>of</strong> <strong>the</strong> outside diameters <strong>of</strong> <strong>the</strong> withdrawal pipes is 4<br />

inches or greater (maximum capacity <strong>of</strong> approximately 216,000 gallons per day 3 )<br />

In general, <strong>the</strong> controlling threshold is <strong>the</strong> annual average daily water use <strong>of</strong> 100,000<br />

gallons per day which is roughly equivalent to <strong>the</strong> indoor daily water use <strong>of</strong> approximately<br />

1,500 persons. 4 In addition, <strong>the</strong> withdrawal <strong>of</strong> water <strong>for</strong> domestic uses from wells<br />

owned by individual users, such as withdrawals from an individual well to serve a house,<br />

is exempt from regulation (see rule 40D-2.051, F.A.C. <strong>for</strong> additional exemptions). It is<br />

very likely that <strong>the</strong> water use <strong>of</strong> many small businesses would be exempt from water use<br />

permit requirements and <strong>the</strong> specific restrictions <strong>of</strong> <strong>the</strong> proposed rule.<br />

In accordance with Section 120.54 (3) (b) 2.a., F.S., <strong>the</strong> District made revisions to <strong>the</strong><br />

proposed rule to reduce adverse impacts to small businesses. First, <strong>the</strong> proposed rule<br />

requirement that permittees are responsible <strong>for</strong> <strong>the</strong> operation, maintenance and replacement<br />

<strong>of</strong> <strong>the</strong> required automatic reading devices was eliminated. The District will<br />

44324-000R4.docx<br />

2 Note that <strong>the</strong>re are special permit thresholds <strong>for</strong> water withdrawals in <strong>the</strong> Most Impacted Area <strong>of</strong> <strong>the</strong><br />

Sou<strong>the</strong>rn Water Use Caution Area (see rule 40D-2.041 (1)(e), F.A.C.).<br />

3 Maximum recommended capacity <strong>for</strong> a schedule 40 pipe is calculated as follows: The 4 inch pipe<br />

has a 3.5 inch inside diameter. The capacity <strong>of</strong> <strong>the</strong> pipe is 150 gpm, so <strong>the</strong> maximum daily water<br />

pumpage is 150 gpm x 60 minutes per hour x 24 hours = 216,000 gallons per day.<br />

4 1,500 persons = 100,000 gpd / 65 gallons per person per day <strong>of</strong> indoor water use.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-14<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

now bear those costs. The vast majority <strong>of</strong> permittees who would have borne those<br />

costs are small businesses. Second, <strong>the</strong> proposed rule requirement that permittees with<br />

permitted ground water quantities <strong>for</strong> frost/freeze protection be required to conduct feasibility<br />

analyses <strong>of</strong> alternative means <strong>of</strong> frost/freeze protection was modified. This requirement<br />

now excludes those permittees with less than 100,000 gallons per day annual<br />

average daily permitted quantity. The vast majority <strong>of</strong> <strong>the</strong> permittees that will not have to<br />

pay <strong>for</strong> such analyses are small businesses.<br />

The proposed rule is not expected to incur costs to small businesses, small cities or<br />

small counties unless it is a water use permittee in <strong>the</strong> DPC WUCA; or requests a water<br />

use permit <strong>for</strong> frost / freeze protection in <strong>the</strong> DPC WUCA; or is outside <strong>the</strong> DPC WUCA<br />

and requests a groundwater quantity <strong>for</strong> frost / freeze protection that impacts <strong>the</strong> Protection<br />

Zone. In <strong>the</strong> event that a small business, small city or small county must comply<br />

with <strong>the</strong> proposed rule, <strong>the</strong> potential transactional costs are provided in Chapter 4.0 <strong>of</strong><br />

this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

ES.6<br />

Overall <strong>Regulatory</strong> Cost and Economic Impact<br />

The proposed rule is not likely to have an adverse impact on economic growth, privatesector<br />

job creation or employment, or private sector investment in excess <strong>of</strong> $1 million in<br />

<strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule. The proposed rule is<br />

not likely to have an adverse impact on business competitiveness, productivity, or innovation<br />

in excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong><br />

<strong>the</strong> rule. Business competitiveness includes <strong>the</strong> ability <strong>of</strong> persons doing business in <strong>the</strong><br />

state to compete with persons doing business in o<strong>the</strong>r states or domestic markets. The<br />

proposed rule is not likely to increase regulatory costs, including any transactional costs,<br />

in excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong><br />

rule. Additional explanation is provided in Chapter 6.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong><br />

<strong>Regulatory</strong> <strong>Costs</strong>.<br />

ES.7<br />

Additional In<strong>for</strong>mation<br />

The proposed rule and recovery strategy are primarily designed to:<br />

<br />

minimize potential negative impacts <strong>of</strong> <strong>the</strong> proposed rule on existing permittees<br />

in <strong>the</strong> region;<br />

44324-000R4.docx<br />

<br />

<br />

prevent <strong>the</strong> worsening <strong>of</strong> <strong>the</strong> recent widespread negative impacts from groundwater<br />

pumpage <strong>for</strong> frost / freeze protection;<br />

provide regulatory and non-regulatory incentives to reduce existing frost / freeze<br />

protection groundwater pumpage and its impacts; and,<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-15<br />

HAZEN AND SAWYER, P.C.


EXECUTIVE SUMMARYJANUARY 2011<br />

<br />

more equitably distribute well failure investigation and repair responsibilities<br />

among permittees.<br />

Some <strong>of</strong> <strong>the</strong>se benefits may be difficult to quantify, but <strong>the</strong>y are none<strong>the</strong>less significant.<br />

For example, proposed requirements to implement economically feasible alternative cold<br />

protection methods and <strong>the</strong> financial assistance provided to growers to implement <strong>the</strong>m<br />

are anticipated to facilitate <strong>the</strong> transition to non-groundwater cold protection.<br />

Prior to <strong>the</strong> frost/freeze event <strong>of</strong> 2010, <strong>the</strong> District’s percentage cost share <strong>of</strong> agricultural<br />

projects to reduce Floridan aquifer withdrawals in <strong>the</strong> area was limited to 50 percent unless<br />

<strong>the</strong> project also improved water quality. Revisions to <strong>the</strong> “FARMS” rule (Chapter<br />

40D-26, F.A.C.) which was approved by <strong>the</strong> District Governing Board will specifically allow<br />

reductions in frost/freeze groundwater withdrawals to be counted in cost effectiveness<br />

calculations to increase <strong>the</strong> likelihood that such projects will qualify <strong>for</strong> District cost<br />

sharing.<br />

In addition, <strong>the</strong> District’s share <strong>of</strong> <strong>the</strong> eligible project costs was increased from 50 percent<br />

to 75 percent in some cases. The intent is to make frost/freeze protection groundwater<br />

reduction projects more financially feasible to growers and provide a significant<br />

reduction in permitted ground water withdrawals in and around <strong>the</strong> DPC WUCA over<br />

time. The District anticipates spending approximately $2.2 million per year over <strong>the</strong> next<br />

10 years to reduce frost / freeze quantities permitted from <strong>the</strong> Upper Floridan aquifer.<br />

Details regarding <strong>the</strong> qualifications <strong>for</strong> FARMS cost-sharing programs are addressed in<br />

Section 7.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

Page ES-16<br />

HAZEN AND SAWYER, P.C.


Table <strong>of</strong> Contents<br />

Transmittal Letter<br />

Executive Summary<br />

Chapter 1.0<br />

Summary <strong>of</strong> Proposed Rule................................................................<br />

...................................1-1<br />

1.1 Background ...................................................................1-1<br />

1.2 <strong>Regulatory</strong> Approach .....................................................<br />

1-2<br />

1.3 Minimum Aquifer Level and Protection Zone..................<br />

1-3<br />

1.4 Submittal <strong>of</strong> Forms.........................................................<br />

1-3<br />

1.5 Responsibility <strong>for</strong> Sinkholes and Subsidence.................<br />

1-4<br />

1.6 Frost / Freeze Protection Allocations ............................. 1-5<br />

1.7 Metering Requirements..................................................<br />

1-5<br />

1.8 Withdrawals that Affect <strong>the</strong> DPC WUCA Minimum .........1-7<br />

Aquifer Level Protection Zone<br />

1.9 Alternative Frost / Freeze Protection Methods ............. 1-12<br />

1.10 Investigation <strong>of</strong> Frost / Freeze and Crop ...................... 1-13<br />

Establishment Withdrawal – Related Well Complaints<br />

by Permittees within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

1.11 Additional Permit Conditions ........................................<br />

1-17<br />

Chapter 2.0<br />

Number <strong>of</strong> Individuals and Entities Required to Comply ........................2-1<br />

44324-000R4.docx<br />

Chapter 3.0<br />

2.1 Summary <strong>of</strong> Proposed Rule Affecting Individuals........... ...........2-1<br />

and Entities<br />

2.2 Existing Water Use Permittees in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong>........2-4<br />

<strong>City</strong> WUCA<br />

2.3 Future Water Use Permit Applicants in <strong>the</strong> <strong>Dover</strong> / ...... 2-11<br />

<strong>Plant</strong> <strong>City</strong> WUCA<br />

2.4 Existing and Future Water Use Permit Applicants........<br />

2-14<br />

Outside <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

Cost to <strong>the</strong> District and to Any O<strong>the</strong>r State and Local............................<br />

............................3-1<br />

Government Entities<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

TOC-1<br />

HAZEN AND SAWYER, P.C.


TABLE OF CONTENTS JANUARY 2011<br />

3.1 Cost to <strong>the</strong> Southwest Florida Water Management ........3-1<br />

District<br />

3.2 Cost to Any O<strong>the</strong>r State and Local Government ............3-9<br />

Entities <strong>of</strong> Implementing and En<strong>for</strong>cing <strong>the</strong> Proposed<br />

Rules<br />

3.3 Anticipated Effect on State or Local Revenues ..............3-9<br />

Chapter 4.0<br />

Transactional <strong>Costs</strong>...............................................................................4-1<br />

4.1 Summary <strong>of</strong> Transactional <strong>Costs</strong> ...................................4-2<br />

4.2 Submittal <strong>of</strong> Forms.........................................................4-2<br />

4.3 Responsibility <strong>for</strong> Sinkholes and Subsidence.................4-3<br />

4.4 Frost / Freeze Protection Permitted Quantities...............4-3<br />

4.5 Metering Requirements..................................................4-4<br />

4.6 Frost / Freeze Protection Methods O<strong>the</strong>r Than ..............4-8<br />

Irrigation Water<br />

4.7 Cost to Use Alternative Water Sources <strong>for</strong> .................. 4-19<br />

Frost / Freeze Protection<br />

4.8 Alternative Frost / Freeze Protection Methods ............ 4-35<br />

For Aquaculture<br />

4.9 Well Complaints and Mitigation.................................... 4-36<br />

4.10 Hourly Salary, Benefits and Overhead ......................... 4-37<br />

Chapter 5.0<br />

Impacts to Small Businesses, Small Cities and Small Counties.............5-1<br />

Chapter 6.0 Overall <strong>Regulatory</strong> Cost and Economic Impact .....................................6-1<br />

6.1 Total <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>..................................6-2<br />

6.2 Likely Impact <strong>of</strong> Proposed Rule on Economic ...............6-9<br />

Growth, Private Sector Employment and Investment<br />

6.3 Likely Impact <strong>of</strong> Proposed Rule on Business .............. 6-18<br />

Competitiveness, Productivity or Innovation<br />

Chapter 7.0<br />

Additional In<strong>for</strong>mation: Non-<strong>Regulatory</strong> Approach.................................7-1<br />

44324-000R4.docx<br />

7.1 Benefits <strong>of</strong> <strong>the</strong> Proposed Rule and Recovery Strategy...7-1<br />

7.2 Non-<strong>Regulatory</strong> Approach..............................................7-5<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

TOC-2<br />

HAZEN AND SAWYER, P.C.


TABLE OF CONTENTS JANUARY 2011<br />

Tables<br />

Table 2.1 Number <strong>of</strong> Water Use Permits with Ground Water Withdrawals in.........2-5<br />

<strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA By Water Use Category and Need to<br />

Comply<br />

Table 2.2 Number <strong>of</strong> Water Use Permits With Ground Water Withdrawals in........2-6<br />

<strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA by Water Use Category, Size <strong>of</strong><br />

Permitted Quantity and <strong>the</strong> Frost / Freeze Criteria<br />

Table 2.3 Number <strong>of</strong> Water Use Permits With Ground Water Withdrawals in........2-6<br />

<strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA That Are In <strong>the</strong> NTB WUCA or <strong>the</strong><br />

SWUCA<br />

Table 2.4 Number <strong>of</strong> Acres Irrigated in <strong>the</strong> DPC WUCA by Crop or Landscape....2-7<br />

Irrigated and Irrigation Method - Water Use Permits with Ground<br />

Water Quantities<br />

Table 2.5 Acreage Distribution <strong>of</strong> Strawberry Production by Water Use................2-8<br />

Permittees in <strong>the</strong> DPC WUCA<br />

Table 2.6 Total Property Acreage <strong>of</strong> Agricultural Permits in <strong>the</strong> DPC WUCA ........2-9<br />

Table 2.7 Total Property Acreage Distribution <strong>of</strong> Agricultural Water Use...............2-9<br />

Permits In <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

Table 2.8 Number <strong>of</strong> Water Use Permits in <strong>the</strong> DPC WUCA that have................2-10<br />

Non-Irrigation Water Use Types<br />

Table 2.9 <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area Number <strong>of</strong> ......................2-11<br />

New Water Use Permits Approved from 2000 to 2009<br />

Table 2.10 <strong>Dover</strong> <strong>Plant</strong> <strong>City</strong> Water Use Caution Area Average Annual ................2-12<br />

Number <strong>of</strong> Water Use Permits Approved from 2000 to 2009<br />

Table 2.11 Number <strong>of</strong> Vacant and Undeveloped Properties and Acreage in .........2-13<br />

<strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, Hillsborough County, by Property Use<br />

Table 2.12 Number <strong>of</strong> Properties and Acreage Associated with Vacant and.........2-14<br />

Undeveloped Land Uses in <strong>the</strong> Polk County Portion <strong>of</strong> <strong>the</strong> DPC<br />

WUCA<br />

44324-000R4.docx<br />

Table 3.1 Total <strong>Estimated</strong> Cost to <strong>the</strong> District Associated with <strong>the</strong> DPC................3-2<br />

WUCA Rule<br />

Table 3.2 <strong>Estimated</strong> Total One-Time Cost to Purchase, Install and Administer.....3-2<br />

Flow Meters<br />

Table 3.3 <strong>Estimated</strong> Cost to Purchase Flow Meters..............................................3-3<br />

Table 3.4 <strong>Estimated</strong> Cost to Install Flow Meters....................................................3-4<br />

Table 3.5 <strong>Estimated</strong> Cost to Purchase, Install, Replace, Maintain and Repair ......3-5<br />

Automatic Meter Reading (AMR) Devices and Data Collection<br />

Table 3.6 <strong>Estimated</strong> Cost to Purchase and Install Automatic Meter Reading ........3-6<br />

(AMR) Devices in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, 2010 Dollars<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

TOC-3<br />

HAZEN AND SAWYER, P.C.


TABLE OF CONTENTS JANUARY 2011<br />

Table 3.7<br />

<strong>Estimated</strong> Cost to Collect Water Withdrawal and Related Data from.....3-7<br />

<strong>the</strong> AMR Devices in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, 2010 Dollars<br />

Table 4.1 <strong>Estimated</strong> Cost to Purchase Water Flow Meters....................................4-5<br />

Table 4.2 <strong>Estimated</strong> Cost to Install Water Flow Meters .........................................4-5<br />

Table 4.3 <strong>Estimated</strong> Cost to Purchase, Install and Maintain a Water Flow ............4-7<br />

Meter and an AMR Device at One Water Withdrawal Point<br />

Table 4.4 <strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events using .....4-12<br />

High Tunnels<br />

Table 4.5 <strong>Estimated</strong> Cost to Protect Fish Ponds from Frost / Freeze Events ......4-14<br />

Using High Tunnels<br />

Table 4.6 <strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events using .....4-16<br />

Crop Cloths<br />

Table 4.7 <strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events using .....4-18<br />

Wind Machines<br />

Table 4.8 <strong>Estimated</strong> Cost <strong>of</strong> a Tailwater Recovery System, Including .................4-23<br />

Excavation <strong>of</strong> Below Ground Pond For Three Farm Sizes in <strong>the</strong><br />

DPC WUCA<br />

Table 4.9 <strong>Estimated</strong> Cost <strong>of</strong> a Tailwater Recovery System, Including .................4-25<br />

Excavation <strong>of</strong> an Above Ground Pond <strong>for</strong> Three Farm Sizes in <strong>the</strong><br />

DPC WUCA<br />

Table 4.10 <strong>Estimated</strong> Revenue and <strong>Costs</strong> <strong>of</strong> Producing Southwest Florida ..........4-27<br />

Oranges Low and High Net Return Estimates, 2010 $<br />

Table 4.11 <strong>Estimated</strong> Revenue and <strong>Costs</strong> <strong>of</strong> Strawberries in <strong>Plant</strong> <strong>City</strong>, Florida,..4-28<br />

2010 Dollars<br />

Table 4.12 Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farm Acre per Year Associated......4-30<br />

with a Tailwater Recovery System <strong>for</strong> a 10 Acre Farm<br />

Table 4.13 Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farm Acre per Year Associated......4-31<br />

with a Tailwater Recovery System <strong>for</strong> a 25 Acre Farm<br />

Table 4.14 Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farm Acre per Year Associated......4-33<br />

with a Tailwater Recovery System <strong>for</strong> a 100 Acre Farm<br />

Table 4.15 <strong>Estimated</strong> <strong>Costs</strong> <strong>of</strong> a Horizontal Well to Obtain Water from <strong>the</strong>...........4-34<br />

Surficial Aquifer, 2010 Dollars<br />

Table 4.16 Hourly Salary and Wage Rates used to Estimate Transactional..........4-38<br />

<strong>Costs</strong><br />

44324-000R4.docx<br />

Table 5.1<br />

Table 5.2<br />

Number <strong>of</strong> Establishments In or Near <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA......5-2<br />

by Employee Size Class<br />

Population <strong>of</strong> Counties that Comprise <strong>the</strong> DPC WUCA and <strong>the</strong> Cities...5-2<br />

and Unincorporated Census Designated Places In <strong>the</strong> DPC WUCA<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

TOC-4<br />

HAZEN AND SAWYER, P.C.


TABLE OF CONTENTS JANUARY 2011<br />

Table 6.1 Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> Associated with Forms, Metering ............6-3<br />

Data Collection and Feasibility Analysis <strong>of</strong> Proposed DPC WUCA Rule<br />

Table 6.2 Summary <strong>of</strong> <strong>Estimated</strong> Total <strong>Regulatory</strong> <strong>Costs</strong> Associated with <strong>the</strong> .....6-4<br />

Proposed DPC WUCA Rule<br />

Table 6.3 <strong>Estimated</strong> Net Returns to Land and Risk from One Strawberry ...........6-12<br />

Crop Using Alternative Frost / Freeze Protection Methods<br />

Table 6.4 <strong>Estimated</strong> Net Returns to Land, Trees and Risk .................................6-14<br />

from Producing Oranges In Southwest Florida<br />

Table 6.5 <strong>Estimated</strong> Net Returns to Land and Risk From Blueberry....................6-16<br />

Production in Florida Using Alternative Frost / Freeze Protection<br />

Methods<br />

Table 7.1 Status <strong>of</strong> Wells and Magnitude <strong>of</strong> Repairs That Resulted......................7-4<br />

From <strong>the</strong> January 2010 Frost / Freeze Event<br />

Table 7.2 Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009 ...............7-6<br />

Figures<br />

Figure 1-1 Map <strong>of</strong> Proposed <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use................... After page 1-2<br />

Caution Area<br />

Figures 7-1<br />

and 7-2 Distribution <strong>of</strong> Well Complaints Using Existing .................... After page 7-4<br />

Methodology Versus New Allocation Method<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

TOC-5<br />

HAZEN AND SAWYER, P.C.


Chapter 1.0<br />

Summary <strong>of</strong> Proposed Rule<br />

This chapter describes <strong>the</strong> proposed rule changes associated with <strong>the</strong> proposed <strong>Dover</strong> /<br />

<strong>Plant</strong> <strong>City</strong> Water Use Caution Area (DPC WUCA).<br />

1.1 Background<br />

The background associated with this proposed rule is provided in <strong>the</strong> proposed revisions<br />

to Chapter 40D-80, Recovery and Prevention Strategies <strong>for</strong> Minimum Flows and Levels,<br />

F.A.C. as follows:<br />

“From January 3 through 13, 2010, <strong>for</strong> <strong>the</strong> first time since records have been kept,<br />

temperatures in eastern Hillsborough County and western Polk County dropped below<br />

34 degrees <strong>for</strong> 11 consecutive days. As a result, area farmers pumped large<br />

quantities <strong>of</strong> groundwater to protect <strong>the</strong>ir crops. This combined pumping dropped <strong>the</strong><br />

aquifer level 60 feet, likely contributed to <strong>the</strong> large number <strong>of</strong> sinkhole occurrences,<br />

and caused more than 750 neighboring groundwater wells to be damaged or to temprotection<br />

<strong>of</strong> crops is authorized by<br />

<strong>the</strong>ir water use permits, permittees are responsible <strong>for</strong> fixing impacts to wells in <strong>the</strong>ir<br />

porarily go dry.<br />

Although pumping groundwater <strong>for</strong> frost / freeze<br />

mitigation areas. The District developed a multi-faceted approach to address <strong>the</strong>se<br />

issues that included a series <strong>of</strong> work sessions <strong>for</strong> invited guests and technical experts<br />

to review public input received and to provide feedback to assist District staff in<br />

developing recommended solutions.<br />

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Additional staff ef<strong>for</strong>ts included <strong>the</strong> coordination <strong>of</strong> a multi-governmental task <strong>for</strong>ce to<br />

secure state and federal funding <strong>for</strong> sinkhole and o<strong>the</strong>r repairs, and development <strong>of</strong><br />

recommendations <strong>for</strong> modifications to well construction, pump depth and pressure<br />

valve cut<strong>of</strong>f devices criteria and inspections. Staff, after considerable discussions<br />

and public input, developed a more equitable approach <strong>for</strong> assigning well mitigation<br />

responsibility <strong>for</strong> frost / freeze related events. In doing so <strong>the</strong> staff made fur<strong>the</strong>r rec-<br />

ommendations <strong>for</strong> limitations on additional groundwater use <strong>for</strong> frost / freeze protec-<br />

tion, developing means to significantly increase <strong>the</strong> percentage <strong>of</strong> frost / freeze protection<br />

in <strong>the</strong> area accomplished by methods o<strong>the</strong>r than groundwater, enhancing<br />

communications with <strong>the</strong> public and permittees during a frost / freeze event, and ex-<br />

pansion <strong>of</strong> permit and hydrologic data collection.”<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

A non-regulatory component <strong>of</strong> <strong>the</strong> recovery and prevention strategy <strong>for</strong> <strong>the</strong> DPC WUCA<br />

is <strong>for</strong> <strong>the</strong> District to provide up to 75 percent <strong>of</strong> <strong>the</strong> cost <strong>of</strong> projects designed to replace<br />

ground water withdrawals <strong>for</strong> frost / freeze protection through <strong>the</strong> District’s Facilitating<br />

Agricultural Resource Management Systems (FARMS) program.<br />

1.2 <strong>Regulatory</strong> Approach<br />

The proposed rule will create a <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area (DPC WUCA)<br />

in portions <strong>of</strong> Hillsborough and Polk counties <strong>for</strong> <strong>the</strong> following purpose (from proposed<br />

40D-80.075 (2)).<br />

“By January 2020, to reduce groundwater withdrawals used <strong>for</strong> frost / freeze protection<br />

by 20% from January 2010 withdrawal quantities to lessen <strong>the</strong> potential that drawdown<br />

during a future frost / freeze event would lower <strong>the</strong> aquifer level at District Well<br />

DV-1 Suwannee below 10 feet NGVD.”<br />

The area to be designated as <strong>the</strong> DPC WUCA is depicted in Figure 1-1. The legal description<br />

<strong>of</strong> <strong>the</strong> DPC WUCA is provided in Chapter 40D-2.801(3)(d), F.A.C. Valid permits<br />

legally in effect as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> this proposed rule are hereafter referred to as<br />

“existing permits”. Portions <strong>of</strong> <strong>the</strong> area <strong>of</strong> <strong>the</strong> DPC WUCA are also included within <strong>the</strong><br />

Nor<strong>the</strong>rn Tampa Bay WUCA and <strong>the</strong> Sou<strong>the</strong>rn Water use Caution Areas and rules pertaining<br />

to those areas remain in <strong>for</strong>ce within those areas.<br />

In establishing <strong>the</strong> Minimum Aquifer Level under proposed changes to Chapter 40D-<br />

8.626 Minimum Aquifer Levels, as measured at District Well DV-1 Suwannee, <strong>the</strong> District<br />

has determined that <strong>the</strong> actual water level is below <strong>the</strong> Minimum Aquifer Level. As a<br />

result, <strong>the</strong> District is implementing a Recovery Strategy <strong>for</strong> <strong>the</strong> Minimum Aquifer Level<br />

described in proposed changes to Section 7.4 “<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution<br />

Area” <strong>of</strong> Part B <strong>of</strong> <strong>the</strong> Basis <strong>of</strong> Review, Water Use Permit In<strong>for</strong>mation Manual (herein<br />

referred to as BOR or Basis <strong>of</strong> Review).<br />

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The proposed requirements, relative to current rule, <strong>of</strong> new, renewal and modified water<br />

use permit applicants in this proposed WUCA or those outside <strong>of</strong> this WUCA proposing<br />

quantities that could impact <strong>the</strong> proposed Minimum Aquifer Level are as follows. These<br />

requirements are from <strong>the</strong> proposed changes to Chapter 40D-1.659, Procedural, F.A.C.,<br />

Chapter 40D-2, Water Use Permits, F.A.C., Chapter 40D-8.626 Minimum Aquifer Levels,<br />

F.A.C. and Part B, Basis <strong>of</strong> Review, Water Use Permit In<strong>for</strong>mation Manual, Sections<br />

1.4.1, 1.9.9, 1.12, 2.1, 3.1, 3.3, 4.3, 5.1, 6.1, 6.2, and 7.4. These requirements address<br />

withdrawal impacts, <strong>the</strong> use <strong>of</strong> alternative water supplies (AWS), <strong>the</strong> use <strong>of</strong> alternative<br />

frost / freeze protection methods, and recovery to <strong>the</strong> Minimum Aquifer Level.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

1.3 Minimum Aquifer Level and Protection Zone<br />

The aquifer level at District well DV-1 Suwannee is affected by local and regional<br />

groundwater withdrawals. In order to address <strong>the</strong> effects <strong>of</strong> local and regional groundwater<br />

withdrawals and <strong>the</strong> variable hydrogeologic factors within <strong>the</strong> region, a Minimum<br />

Aquifer Level Protection Zone is established under <strong>the</strong> proposed rule. The Minimum<br />

Aquifer Protection Zone is defined as <strong>the</strong> area within <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> 30 foot drawdown<br />

contour that resulted from <strong>the</strong> January, 2010 frost / freeze event as shown in Figure<br />

1-1.<br />

The Minimum Aquifer Level is <strong>the</strong> 10 ft. potentiometric surface elevation at District Well<br />

DV-1 Suwannee. The Minimum Aquifer Level is <strong>the</strong> level below which <strong>the</strong> greatest impact<br />

occurred in terms <strong>of</strong> well failures and sinkholes during <strong>the</strong> 2010 frost/freeze event.<br />

Overall compliance with <strong>the</strong> Minimum Aquifer Level is evaluated using a ground water<br />

flow model simulation <strong>of</strong> <strong>the</strong> permitted groundwater frost / freeze withdrawals in <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA. Based on an annual simulation, if <strong>the</strong> resulting potentiometric<br />

level is at or above 10 ft NGVD at well DV-1 Suwannee, compliance with <strong>the</strong> Minimum<br />

Aquifer Level is achieved. If <strong>the</strong> resulting level is below 10 ft. NGVD at well DV-1 Suwannee,<br />

compliance with <strong>the</strong> Minimum Aquifer Level is not achieved.<br />

Once <strong>the</strong> Minimum Aquifer Level is achieved, based on <strong>the</strong> annual simulation, if <strong>the</strong> actual<br />

potentiometric level falls below <strong>the</strong> Minimum Aquifer Level during a frost / freeze<br />

event, <strong>the</strong> District shall investigate <strong>the</strong> cause, re-evaluate <strong>the</strong> Minimum Aquifer Level,<br />

and determine <strong>the</strong> appropriate recovery strategy. Permittees do not have to demonstrate<br />

individual compliance with <strong>the</strong> Minimum Aquifer Level, only <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone, as described in Chapter 1.8 <strong>of</strong> this SERC. The primary purpose<br />

<strong>of</strong> <strong>the</strong> Minimum Aquifer Level is to determine whe<strong>the</strong>r a recovery strategy is required.<br />

1.4 Submittal <strong>of</strong> Forms<br />

All water use permit application <strong>for</strong>ms and <strong>the</strong> agricultural supplemental <strong>for</strong>m and agricultural<br />

attachment <strong>for</strong> small generals are edited to notify applicants in <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong><br />

<strong>City</strong> WUCA <strong>of</strong> additional restrictions and requirements and to submit additional documentation.<br />

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In addition to submitting <strong>the</strong> appropriate application and supplemental <strong>for</strong>m(s) or Small<br />

General attachment <strong>for</strong>m(s), water use permit applicants will need to submit one or more<br />

<strong>of</strong> <strong>the</strong> following completed SWUCA / DPC WUCA <strong>for</strong>ms, depending upon <strong>the</strong>ir proposed<br />

water use. Under current rule, applicants in <strong>the</strong> SWUCA area <strong>of</strong> <strong>the</strong> DPC WUCA are<br />

required to submit one or more <strong>of</strong> <strong>the</strong>se <strong>for</strong>ms.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

(1) SWUCA / DPC WUCA Supplemental Form - During <strong>the</strong> water use permit application<br />

process, all water use permit applicants in <strong>the</strong> DPC WUCA will need to submit <strong>the</strong> Supplemental<br />

Form – Sou<strong>the</strong>rn Water Use Caution Area and <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use<br />

Caution Area, incorporated by reference in Subsection 40D-2.101(6), F.A.C.<br />

(2) Net Benefit Supplemental Form - If a net benefit is to be considered by <strong>the</strong> District,<br />

<strong>the</strong> applicant will need to complete <strong>the</strong> Net Benefit Supplemental Form similar to that<br />

used in <strong>the</strong> Sou<strong>the</strong>rn Water Use Caution Area and which will be incorporated by reference<br />

in Subsection 40D-2.101(6), F.A.C. This <strong>for</strong>m is required only if <strong>the</strong> applicant proposes<br />

a Mitigation Plus Recovery type <strong>of</strong> Net Benefit.<br />

(3) Groundwater Replacement Credit Application - If a water replacement credit is to be<br />

considered by <strong>the</strong> District, <strong>the</strong> applicant will need to complete <strong>the</strong> Water Replacement<br />

Credit Application – Sou<strong>the</strong>rn Water Use Caution Area and <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use<br />

Caution Area, incorporated by reference in Subsection 40D-2.101(6), F.A.C. This <strong>for</strong>m<br />

is required only if <strong>the</strong> applicant proposes a Groundwater Replacement Credit as a Net<br />

Benefit type.<br />

1.5 Responsibility <strong>for</strong> Sinkholes and Subsidence<br />

Under Standard Permit Conditions, <strong>the</strong> requirement that a permittee shall mitigate “sinkholes<br />

or subsidence caused by reduction in water levels” will be deleted under Chapter<br />

40D-2.381 (3)(m)(2)).<br />

Under existing rule, permittees are required to mitigate adverse impacts to <strong>of</strong>fsite land<br />

uses and <strong>the</strong> rule includes a list <strong>of</strong> occurrences that are considered adverse impacts,<br />

including sinkholes or subsidence caused by reductions in water levels. The proposed<br />

rule changes <strong>the</strong> list from an all inclusive list to be a list <strong>of</strong> examples <strong>of</strong> adverse impacts.<br />

This list does not include sinkholes or subsidence as examples but does not eliminate<br />

responsibility <strong>for</strong> such occurrences where responsibility can be determined.<br />

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Experience indicates that in an area <strong>of</strong> high concentration <strong>of</strong> large withdrawals by numerous<br />

permittees (such as in <strong>the</strong> DPC WUCA) and in areas where sinkholes occur in<br />

<strong>the</strong> absence <strong>of</strong> withdrawals, it is difficult to assign responsibility <strong>for</strong> a sinkhole to a single<br />

permittee. Water levels, and <strong>the</strong>ir impact on wells <strong>of</strong> certain depths, are more easily correlated.<br />

In areas such as <strong>the</strong> DPC WUCA, <strong>the</strong> approach will be to not allow increases in<br />

withdrawals and to reduce <strong>the</strong>m over time. Where it is less difficult to correlate <strong>the</strong> <strong>for</strong>mation<br />

<strong>of</strong> sinkholes to a particular permit, this condition can be applied on a case-bycase<br />

basis, ra<strong>the</strong>r than a standard permit condition.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

1.6 Frost / Freeze Protection Allocations<br />

The following frost / freeze protection quantities apply to permits within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong><br />

<strong>City</strong> WUCA and <strong>for</strong> any permit with frost / freeze quantities authorized to be used or<br />

withdrawn from any combination <strong>of</strong> sources that if withdrawn from groundwater alone<br />

would have <strong>the</strong> potential to impact <strong>the</strong> Minimum Aquifer Level Protection Zone established<br />

<strong>for</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA.<br />

Maximum Daily allocations <strong>for</strong> frost freeze protection shall be allocated based on a 21<br />

hour event. Under current rule, <strong>the</strong> allocations are based on a 24 hour event. Frost /<br />

Freeze quantity allocations shall be as follows and are not different from current rule.<br />

●<br />

●<br />

●<br />

Blueberries, Nursery, and Strawberries shall be based on 6,788 gallons per hour<br />

per acre. This is current rule.<br />

Citrus shall be based on 3,000 gallons per hour per acre. This is <strong>the</strong> current rule<br />

<strong>for</strong> citrus when low volume irrigation is used.<br />

Aquaculture shall be based on <strong>the</strong> type <strong>of</strong> fish and <strong>the</strong> volume <strong>of</strong> water replaced<br />

in <strong>the</strong> permittee’s vats, ponds and tanks. This is <strong>the</strong> current rule <strong>for</strong> aquaculture<br />

operations.<br />

1.7 Metering Requirements<br />

The proposed changes to <strong>the</strong> water metering requirements are from <strong>the</strong> BOR Section<br />

7.4, paragraphs 4.1 Metering and 4.2 Permit Conditions.<br />

The proposed metering requirements apply to <strong>the</strong> following water use permits.<br />

1. Permits with frost / freeze quantities to be withdrawn from groundwater within <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA; or,<br />

2. Permits <strong>for</strong> 100,000 gpd annual average or greater from groundwater within <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA; or,<br />

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3. Permits within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA <strong>for</strong> groundwater quantities to provide<br />

frost / freeze quantities authorized to be used or withdrawn from any combination <strong>of</strong><br />

sources that if withdrawn from groundwater alone would have <strong>the</strong> potential to impact<br />

<strong>the</strong> Minimum Aquifer Level Protection Zone established <strong>for</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

WUCA; or,<br />

4. Permits within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA <strong>for</strong> groundwater quantities to provide<br />

supplemental irrigation <strong>for</strong> a use that typically requires frost / freeze protection and<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

where such protection could be achieved through groundwater withdrawals but alternative<br />

protection methods are proposed.<br />

For <strong>the</strong> purposes <strong>of</strong> <strong>the</strong> DPC WUCA rule, <strong>the</strong> District considers strawberries, blueberries,<br />

nurseries (container and some field), citrus (ridge and flatwood) and tropical fish<br />

farms as those activities that typically require frost / freeze protection.<br />

Under <strong>the</strong> proposed rule, all <strong>of</strong>f-site sources and withdrawal points on <strong>the</strong> permit, including<br />

backup and standby withdrawal points, are required to be metered. In addition, all<br />

alternative water supplies are required to be metered. Upon request <strong>of</strong> <strong>the</strong> District, permittees<br />

required to meter withdrawals shall provide <strong>the</strong> District an opportunity to per<strong>for</strong>m<br />

measurements <strong>of</strong> flow during system operation. Metering requirements under item (2)<br />

above represents no change from current metering requirements.<br />

Permittees with water use permits as described under (1), (3) and (4), above, shall meter<br />

withdrawal quantities from each withdrawal point using automatic meter reading devices<br />

and provide meter readings to <strong>the</strong> District as set <strong>for</strong>th in <strong>the</strong> BOR, Section 7.4. All withdrawal<br />

points, including alternative water supplies, shall be metered and reported. All<br />

meters shall be equipped to automatically collect and report ambient temperature, wet<br />

bulb temperature, system pressure, pond levels and o<strong>the</strong>r system indicators <strong>of</strong> <strong>the</strong> time<br />

withdrawals started and stopped and temperatures. The data shall be collected hourly<br />

and transmitted to <strong>the</strong> District or <strong>the</strong> District’s designated representative on a frequency<br />

not less than daily and maintained in a time series <strong>for</strong>mat that identifies <strong>the</strong> collection<br />

site by District site ID, date and value <strong>for</strong> each reading. Data shall be transferred automatically<br />

to <strong>the</strong> District’s designated electronic data collection site, in a fixed file <strong>for</strong>mat<br />

as specified by <strong>the</strong> District.<br />

Where automatic reading devices are installed and withdrawal data is provided to <strong>the</strong><br />

District via this device as specified in <strong>the</strong> WUP Basis <strong>of</strong> Review Section 7.4 4, <strong>the</strong> permittee<br />

shall no longer be required to independently submit withdrawal quantities except<br />

in <strong>the</strong> case <strong>of</strong> device failure.<br />

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Under current rule, if <strong>the</strong> permittee or applicant is not located in a WUCA (such as <strong>the</strong><br />

SWUCA or Nor<strong>the</strong>rn Tampa Bay WUCA) <strong>the</strong>n metering is only required when <strong>the</strong> permitted<br />

quantity is 500,000 gpd or greater regardless <strong>of</strong> <strong>the</strong> quantities permitted <strong>for</strong> frost /<br />

freeze protection. In addition, all Public Supply permits <strong>for</strong> average daily quantities<br />

greater than 100,000 gpd in all areas <strong>of</strong> <strong>the</strong> District are required to be metered. If located<br />

in a WUCA, <strong>the</strong>n metering is required when <strong>the</strong> permitted quantity is 100,000 gpd<br />

or greater regardless <strong>of</strong> <strong>the</strong> quantities permitted <strong>for</strong> frost / freeze protection. Automatic<br />

Meter Reading devices are not required under current rule.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

The proposed rule describes District funding <strong>of</strong> some metering requirements. For permits<br />

existing as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule, <strong>the</strong> District will provide <strong>for</strong> <strong>the</strong> purchase<br />

and installation flow meters. These flow meters would be installed on withdrawal points,<br />

inflow lines, catchment facilities, tailwater recovery or rainfall capture ponds and storage<br />

facilities in existence prior to <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule. Funding will be provided<br />

where <strong>the</strong> withdrawal point, facility or pond is not equipped with and not required by District<br />

rule as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule to have a flow meter. Permittees that submit<br />

a water use permit application on or after <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule shall provide and<br />

install flow meters at <strong>the</strong>ir expense. The cost <strong>of</strong> operation and maintenance and replacement<br />

<strong>of</strong> all meters shall be <strong>the</strong> responsibility <strong>of</strong> <strong>the</strong> permittee. After <strong>the</strong> effective<br />

date <strong>of</strong> this proposed rule, <strong>the</strong> permittee, at its expense, will provide and install meters at<br />

any existing withdrawal points that are reactivated after being capped, plugged, or dismantled.<br />

Upon request <strong>of</strong> <strong>the</strong> District, permittees required to meter withdrawals shall provide <strong>the</strong><br />

District an opportunity to per<strong>for</strong>m measurements <strong>of</strong> flow during system operation. The<br />

District will ensure that <strong>the</strong> measurements are made in a manner that does not interfere<br />

with <strong>the</strong> permittee’s water use activities.<br />

The proposed rule describes District funding <strong>of</strong> <strong>the</strong> automatic meter reading (AMR) devices.<br />

For permits where AMR devised are required, <strong>the</strong> District will provide and install<br />

automatic meter reading devices on each flow meter that is not already so equipped.<br />

The District shall include <strong>the</strong>se devices in <strong>the</strong> District’s data collection and reporting service<br />

subscription at no cost to <strong>the</strong> permittee. The maintenance, repair, and replacement<br />

<strong>of</strong> all automatic meter reading devices shall be <strong>the</strong> responsibility <strong>of</strong> <strong>the</strong> District.<br />

For permits issued pursuant to applications submitted on or after <strong>the</strong> effective date <strong>of</strong> <strong>the</strong><br />

rule, <strong>the</strong> permittee shall provide and install automatic meter reading devices at its expense.<br />

The cost <strong>of</strong> operation and maintenance <strong>of</strong> all meters and automatic meter reading<br />

equipment shall be <strong>the</strong> responsibility <strong>of</strong> <strong>the</strong> permittee. The District shall include <strong>the</strong><br />

data collection and reporting service subscription at no cost to <strong>the</strong> permittee.<br />

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1.8 Withdrawals that Affect <strong>the</strong> DPC WUCA Minimum Aquifer Level Protection<br />

Zone<br />

The proposed rule regarding <strong>the</strong> permitting <strong>of</strong> water withdrawals in <strong>the</strong> DPC WUCA is<br />

described below. The text below is taken directly from <strong>the</strong> proposed changes to <strong>the</strong> BOR<br />

Section 7.4 DPC WUCA.<br />

General. A Minimum Aquifer Level has been established <strong>for</strong> District Well DV-1 Suwannee<br />

in Rule 40D-8.626(3), F.A.C., <strong>the</strong> location <strong>of</strong> which is depicted on Figure 1-1. In order<br />

to address <strong>the</strong> effects <strong>of</strong> local and regional groundwater withdrawals and <strong>the</strong> variable<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

hydrogeologic factors within <strong>the</strong> region, a Minimum Aquifer Level Protection Zone is defined<br />

as <strong>the</strong> area within <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> 30 ft. drawdown contour <strong>for</strong> <strong>the</strong> January<br />

2010 frost / freeze event (See Figure 1-1.). In establishing <strong>the</strong> Minimum Aquifer Level,<br />

<strong>the</strong> District has determined that <strong>the</strong> actual water level is below <strong>the</strong> Minimum Aquifer<br />

Level when certain pumping and climatic conditions occur. As required by law, <strong>the</strong> District<br />

is expeditiously implementing a Recovery Strategy <strong>for</strong> <strong>the</strong> Minimum Aquifer Level.<br />

The <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA provisions <strong>of</strong> <strong>the</strong> Basis <strong>of</strong> Review <strong>for</strong> Water Use Permit<br />

Applications, and Chapters 40D-2, 40D-8 and 40D-80, F.A.C., set <strong>for</strong>th <strong>the</strong> regulatory<br />

portion <strong>of</strong> <strong>the</strong> recovery strategy <strong>for</strong> <strong>the</strong> Minimum Aquifer Level. Compliance with this<br />

Section does not, by itself, satisfy <strong>the</strong> requirements <strong>of</strong> Chapter 40D-2, F.A.C., <strong>for</strong> applications<br />

submitted on or after <strong>the</strong> effective date <strong>of</strong> this proposed rule.<br />

Existing Permits. Applications <strong>for</strong> <strong>the</strong> renewal or modification <strong>of</strong> a permit with no proposed<br />

increase in permitted frost / freeze protection quantities or change in Use Type<br />

associated with frost / freeze protection will be evaluated to determine compliance with<br />

<strong>the</strong> conditions <strong>for</strong> issuance <strong>of</strong> a permit set <strong>for</strong>th in Rule 40D-2.301, F.A.C., and <strong>the</strong> Water<br />

Use Permit Basis <strong>of</strong> Review in its entirety. When evaluating <strong>the</strong> reasonable-beneficial<br />

use <strong>of</strong> <strong>the</strong> water, emphasis will be given to reasonable water need, water conservation,<br />

use <strong>of</strong> alternative water supplies, and use <strong>of</strong> alternative frost / freeze protection methods.<br />

However, <strong>the</strong> existing impacts <strong>of</strong> permitted quantities on <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone will not be a basis <strong>for</strong> permit denial because <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

WUCA Recovery Strategy taken as a whole is intended to achieve recovery to <strong>the</strong> established<br />

minimum level as soon as practicable.<br />

Self-Relocation. A permittee with existing permitted impacts on <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule may modify its permit to relocate<br />

to a different property all or a portion <strong>of</strong> <strong>the</strong> used and unused reasonable-beneficial<br />

permitted quantity. When relocated, <strong>the</strong> withdrawal <strong>of</strong> <strong>the</strong> quantities cannot increase impacts<br />

to <strong>the</strong> Minimum Aquifer Level Protection Zone and must meet all o<strong>the</strong>r applicable<br />

permitting criteria included in 40D-2, F.A.C., and <strong>the</strong> Basis <strong>of</strong> Review. A Self-Relocation<br />

cannot include any change in ownership, control, Use Type or increase in quantities.<br />

Crop rotation, by planting and irrigating non-contiguous properties within <strong>the</strong> same locale<br />

in a structured, revolving fashion, is allowed under a single permit and is not considered<br />

Self-Relocation.<br />

Transfer. A permit may be transferred to ano<strong>the</strong>r person or entity provided <strong>the</strong>re is no<br />

change in permitted water use activities.<br />

44324-000R4.docx<br />

Applications For New Quantities. For applications including New Quantities <strong>for</strong><br />

frost/freeze protection withdrawals located within <strong>the</strong> DPC WUCA, and applications <strong>for</strong><br />

permits <strong>for</strong> frost/freeze withdrawals outside <strong>the</strong> DPC WUCA but with <strong>the</strong> potential to impact<br />

to impact <strong>the</strong> Protection Zone, <strong>the</strong> District will evaluate <strong>the</strong> applications to deter-<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

mine compliance with <strong>the</strong> Protection Zone and all o<strong>the</strong>r 40D-2, F.A.C. rule criteria. Applications<br />

<strong>for</strong> New Quantities that impact <strong>the</strong> Minimum Aquifer Level Protection Zone<br />

cannot be permitted. This applies to all applications inside and outside <strong>the</strong> DPC WUCA.<br />

The proposed use shall only be permitted if <strong>the</strong> proposed ground water withdrawals do<br />

not impact <strong>the</strong> Minimum Aquifer Level Protection Zone. Metering <strong>of</strong> wells and any alternative<br />

sources shall be required to assure that <strong>the</strong> alternatives are used when alternative<br />

frost / freeze methods are proposed <strong>for</strong> protection.<br />

1. "New Quantities" means groundwater <strong>for</strong> frost/freeze protection that is not currently<br />

authorized to be withdrawn by <strong>the</strong> applicant or not currently authorized to be used <strong>for</strong><br />

<strong>the</strong> intended use by <strong>the</strong> applicant. This includes applications to modify existing permits<br />

to increase quantities, and/or change <strong>the</strong> Permit Use Type (affecting only <strong>the</strong><br />

modified portion) and applications <strong>for</strong> an initial permit but does not include a full or<br />

partial transfer. A modification to change crops or plants grown under an Agricultural<br />

Permit Use Type Classification or to change withdrawal location or Use Type that is<br />

authorized by <strong>the</strong> terms <strong>of</strong> <strong>the</strong> permit or site certification at <strong>the</strong> time <strong>of</strong> issuance, is<br />

not a change in Permit Use Type provided that <strong>the</strong> quantities do not increase. In addition,<br />

when land is mined and <strong>the</strong> land will be returned to <strong>the</strong> Use Type operation<br />

authorized under <strong>the</strong> water use permit (WUP) that existed prior to mining, such activity<br />

does not constitute a change in Use Type or New Quantities.<br />

2. Groundwater Withdrawal Impacts and Analysis <strong>for</strong> Frost / Freeze Withdrawals - All<br />

applications <strong>for</strong> New Quantities and applications located outside <strong>of</strong> <strong>the</strong> DPC WUCA<br />

whose requested withdrawals have <strong>the</strong> potential to impact <strong>the</strong> Protection Zone will<br />

be evaluated to determine whe<strong>the</strong>r <strong>the</strong> proposed frost / freeze withdrawal impacts<br />

<strong>the</strong> DPC WUCA Minimum Aquifer Level Protection Zone. However, <strong>the</strong> applicant has<br />

<strong>the</strong> option to reduce or redistribute <strong>the</strong> withdrawals to eliminate any impacts so that<br />

<strong>the</strong> withdrawal can be permitted. In addition to <strong>the</strong> o<strong>the</strong>r requirements <strong>of</strong> Rule 40D-<br />

2.301(1), F.A.C. and <strong>the</strong> Basis <strong>of</strong> Review, <strong>the</strong> following requirements apply to New<br />

Quantities and applications located outside <strong>the</strong> DPC WUCA whose requested withdrawals<br />

<strong>for</strong> frost/freeze protection have <strong>the</strong> potential to impact <strong>the</strong> Protection Zone:<br />

44324-000R4.docx<br />

Frost / freeze Protection – Applications <strong>for</strong> New Quantities <strong>for</strong> frost / freeze protection<br />

shall be evaluated based on a frost / freeze design event <strong>of</strong> 21 hours <strong>of</strong> irrigation, followed<br />

consecutively by 6 hours <strong>of</strong> non-irrigation, 13 hours <strong>of</strong> irrigation, 11 hours <strong>of</strong><br />

non-irrigation and by 14 hours <strong>of</strong> irrigation. For groundwater quantities, <strong>the</strong> resulting<br />

drawdown shall not exceed 0.0 ft. within or at <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone, in addition to meeting <strong>the</strong> requirements <strong>of</strong> Rule 40D-2.301(1),<br />

F.A.C., and <strong>the</strong> Basis <strong>of</strong> Review. Existing permitted groundwater withdrawals <strong>for</strong> frost<br />

/ freeze protection within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA are addressed below in sections<br />

titled “Investigation <strong>of</strong> Frost / freeze Withdrawal-Related Well Complaints” and<br />

<strong>the</strong> permit conditions <strong>for</strong> mitigation <strong>of</strong> impacts to existing legal uses.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

Net Benefit. The Net Benefit provision is available to applicants <strong>for</strong> New Quantities, including<br />

applications located outside <strong>the</strong> DPC WUCA whose requested withdrawals are<br />

constrained by impacts to <strong>the</strong> Minimum Aquifer Level Protection Zone. The applicant<br />

may choose to implement one or more <strong>of</strong> <strong>the</strong> Net Benefit options listed below in order to<br />

mitigate <strong>the</strong> predicted impacts.<br />

To provide a Net Benefit, <strong>the</strong> measures proposed by <strong>the</strong> applicant must <strong>of</strong>fset <strong>the</strong> predicted<br />

negative impact <strong>of</strong> <strong>the</strong> proposed withdrawal and also provide an additional positive<br />

effect within or at <strong>the</strong> boundary <strong>of</strong> <strong>the</strong> Minimum Aquifer Level Protection Zone equal<br />

to or exceeding 20% <strong>of</strong> <strong>the</strong> predicted negative impact. For example, if <strong>the</strong> predicted<br />

drawdown is 1.0 ft., <strong>the</strong> mitigation must <strong>of</strong>fset <strong>the</strong> 1.0 ft. drawdown and provide ano<strong>the</strong>r<br />

0.2 ft. (i.e., 20% <strong>of</strong> 1.0 ft.) <strong>of</strong> positive effect so that <strong>the</strong> result is a net improvement <strong>of</strong> 0.2<br />

ft. There are two <strong>for</strong>ms <strong>of</strong> Net Benefit, including Mitigation plus Recovery (Land Use<br />

Transitions), and Groundwater Replacement Credits, as described below.<br />

A. Mitigation plus Recovery – This Net Benefit provision consists <strong>of</strong> retiring from use <strong>the</strong><br />

historically used groundwater quantity associated with one or more permits that impacts<br />

<strong>the</strong> Minimum Aquifer Level Protection Zone. Mitigation plus recovery must ei<strong>the</strong>r<br />

precede or be coincident with any new permitted withdrawals. Historically used<br />

quantities are those permitted quantities that <strong>the</strong> District determines have been<br />

deemed reasonable-beneficial and were withdrawn and used by a permittee. These<br />

quantities are determined based on documentation previously submitted by a permittee<br />

and o<strong>the</strong>r methods available to <strong>the</strong> District to verify <strong>the</strong> quantities being retired.<br />

The types <strong>of</strong> documentation submitted by permittees include seasonal/annual crop<br />

reports, metered data, and o<strong>the</strong>r in<strong>for</strong>mation. O<strong>the</strong>r methods <strong>of</strong> verification include<br />

aerial photography, receipts <strong>for</strong> supplies, equipment, and services, property appraiser<br />

records and o<strong>the</strong>r methods. For small permits below thresholds <strong>for</strong> crop reporting<br />

and metering, aerial photography and o<strong>the</strong>r methods will be used to determine quantities.<br />

1. Land Use Transitions<br />

(a) Where historically used groundwater quantity associated with one or more<br />

permits that impacts <strong>the</strong> Minimum Aquifer Level Protection Zone are permanently<br />

retired, 80% <strong>of</strong> <strong>the</strong> quantity is available to be applied as a Net Benefit.<br />

44324-000R4.docx<br />

(b) Where an existing permittee replaces groundwater that was historically used<br />

<strong>for</strong> frost/freeze protection with water from tailwater recovery systems or o<strong>the</strong>r alternative<br />

frost/freeze protection methods, 35% <strong>of</strong> <strong>the</strong> groundwater quantity shall<br />

remain in <strong>the</strong> permit <strong>for</strong> use as tailwater pond makeup supply or emergency<br />

standby use. The amount available <strong>for</strong> use as a Net Benefit will be 80% <strong>of</strong> <strong>the</strong><br />

remaining 65% <strong>of</strong> <strong>the</strong> historically used groundwater quantity.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

(c) Where <strong>the</strong> historically used groundwater quantities are used to provide a Net<br />

Benefit <strong>for</strong> ano<strong>the</strong>r permittee but <strong>the</strong> donor permittee wishes to maintain a standby<br />

permit, <strong>the</strong> donor permittee’s standby quantity shall be 80% <strong>of</strong> this quantity,<br />

allowing 80% <strong>of</strong> <strong>the</strong> remaining 20% to be available as a Net Benefit.<br />

2. Recharging <strong>the</strong> aquifer and withdrawing water such that <strong>the</strong>re remains a net<br />

positive impact on <strong>the</strong> Floridan aquifer potentiometric surface at least 20% greater<br />

than <strong>the</strong> impact <strong>of</strong> <strong>the</strong> proposed withdrawal.<br />

3. Undertaking o<strong>the</strong>r actions to <strong>of</strong>fset <strong>the</strong> proposed impact <strong>of</strong> <strong>the</strong> withdrawal plus<br />

20% recovery.<br />

B. Groundwater Replacement Credit - To reduce groundwater withdrawals, a<br />

Groundwater Replacement Credit can be obtained as an incentive to permittees to<br />

<strong>of</strong>fset groundwater withdrawals with alternative water supplies (AWS). The holder <strong>of</strong><br />

a Groundwater Replacement Credit can use <strong>the</strong> Credit to provide a Net Benefit<br />

where required. The process to obtain a Groundwater Replacement Credit is as follows:<br />

1. A Groundwater Replacement Credit is created when a person or entity (Supplier)<br />

provides a quantity <strong>of</strong> water from an alternative water supply to <strong>of</strong>fset an existing<br />

permit holder’s (Receiver’s) groundwater withdrawals when those withdrawals<br />

impact <strong>the</strong> Minimum Aquifer Level Protection Zone. A Groundwater Replacement<br />

Credit will be available to ei<strong>the</strong>r <strong>the</strong> Supplier or <strong>the</strong> Receiver, or both, at <strong>the</strong>ir mutually<br />

determined option.<br />

2. A Groundwater Replacement Credit will be issued <strong>for</strong> an amount equal to 80 percent<br />

<strong>of</strong> <strong>the</strong> reasonable-beneficial quantity that has been historically used.<br />

3. The Supplier and Receiver shall apply to <strong>the</strong> District <strong>for</strong> <strong>the</strong> credit and indicate to<br />

<strong>the</strong> District which entity should obtain <strong>the</strong> credit quantity, or whe<strong>the</strong>r <strong>the</strong> credit<br />

quantity will be divided between <strong>the</strong>m.<br />

44324-000R4.docx<br />

4. The District will set aside <strong>the</strong> groundwater quantities that are discontinued as a<br />

result <strong>of</strong> <strong>the</strong> <strong>of</strong>fset by AWS in a standby permit that will be issued to <strong>the</strong> Receiver<br />

to allow withdrawal <strong>of</strong> all or a portion <strong>of</strong> such quantities in <strong>the</strong> event that <strong>the</strong> alternative<br />

water supply is interrupted, discontinued, becomes unsuitable or is decreased.<br />

5. The Groundwater Replacement Credit will exist <strong>for</strong> only so long as <strong>the</strong> Receiver<br />

maintains its use <strong>of</strong> <strong>the</strong> AWS, unless all groundwater use at <strong>the</strong> Receiver site<br />

ceases, in which case <strong>the</strong> Credit shall remain in effect and available to <strong>the</strong> holder<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

<strong>of</strong> <strong>the</strong> Credit. The Credit will also remain available if <strong>the</strong> Receiver transfers <strong>the</strong><br />

standby permit to a new owner at <strong>the</strong> same site who continues <strong>the</strong> same water<br />

use with <strong>the</strong> AWS.<br />

6. The only withdrawals that may be considered <strong>for</strong> a Groundwater Replacement<br />

Credit are those that meet <strong>the</strong> permitting criteria <strong>of</strong> Chapter 40D-2, F.A.C., and<br />

this Basis <strong>of</strong> Review <strong>for</strong> Water Use Permit Applications.<br />

7. Reclaimed water suppliers shall not be eligible <strong>for</strong> a Groundwater Replacement<br />

Credit when reclaimed water is directed from existing reclaimed water users to<br />

o<strong>the</strong>r reclaimed water users and such redirection causes an existing reclaimed<br />

water user to reinstate permitted standby ground water withdrawals. In such a<br />

case <strong>the</strong> credit shall be applicable if <strong>the</strong> reclaimed water provider can demonstrate<br />

that <strong>the</strong> cumulative effect <strong>of</strong> such redirection will achieve more recovery <strong>of</strong><br />

<strong>the</strong> Minimum Aquifer Level than would o<strong>the</strong>rwise occur absent <strong>of</strong> <strong>the</strong> redirection.<br />

1.9 Alternative Frost / Freeze Protection Methods<br />

Revisions to Section 7.4 <strong>of</strong> <strong>the</strong> Basis <strong>of</strong> Review address <strong>the</strong> requirement <strong>of</strong> certain water<br />

use permit applicants to investigate <strong>the</strong> technical, economic and environmental feasibility<br />

<strong>of</strong> using alternatives to ground water <strong>for</strong> frost / freeze protection. This feasibility analysis<br />

is required <strong>of</strong> all applicants <strong>for</strong> permits with at least 100,000 gpd average annual daily<br />

water quantities <strong>for</strong> an activity that typically uses frost / freeze protection and has or proposes<br />

to have a groundwater withdrawal with <strong>the</strong> potential to impact <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone.<br />

If it is determined that alternatives to groundwater are not feasible, applications <strong>for</strong> New<br />

Quantities that impact <strong>the</strong> Minimum Aquifer level Protection Zone will not be permitted<br />

without a Net Benefit. However, in evaluating renewal applications <strong>for</strong> permits in effect<br />

as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> rule, a determination that alternatives to groundwater are not<br />

feasible shall not be a basis <strong>for</strong> denial <strong>of</strong> <strong>the</strong> renewal application.<br />

44324-000R4.docx<br />

The proposed rule provides examples <strong>of</strong> alternatives to using groundwater to provide<br />

frost / freeze protection. These examples are tailwater recovery systems, storm water<br />

systems, tunnels, covers, foam, heaters and methods supported by documentation from<br />

<strong>the</strong> Institute <strong>of</strong> Food and Agricultural Sciences at <strong>the</strong> University <strong>of</strong> Florida. The required<br />

evaluation shall determine whe<strong>the</strong>r alternatives are available to use in lieu <strong>of</strong> groundwater<br />

<strong>for</strong> all or part <strong>of</strong> frost / freeze crop protection including investigation <strong>of</strong> participation in<br />

<strong>the</strong> FARMS program set <strong>for</strong>th in Chapter 40D-26, F.A.C. Infeasibility shall be supported<br />

with a detailed explanation, including a description <strong>of</strong> <strong>the</strong> investigation <strong>of</strong> participation in<br />

<strong>the</strong> FARMS program. Use <strong>of</strong> alternatives to groundwater <strong>for</strong> frost / freeze protection shall<br />

be required where technically, economically, and environmentally feasible.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

1.10 Investigation <strong>of</strong> Frost / Freeze and Crop Establishment Withdrawal –<br />

Related Well Complaints by Permittees within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

Revisions to Section 7.4 <strong>of</strong> <strong>the</strong> BOR describes a method to allocate permittee responsibility<br />

<strong>for</strong> well complaints by determining, to <strong>the</strong> extent possible, <strong>the</strong> actual contribution <strong>of</strong><br />

a permittee’s withdrawal to a well complaint and methods <strong>for</strong> allocating well complaints<br />

to individual permittees.<br />

Under current rule, all water use permits have conditions that hold <strong>the</strong> permittee responsible<br />

<strong>for</strong> any damage caused by <strong>the</strong> permittee’s water withdrawals. In <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong><br />

<strong>City</strong> area, <strong>the</strong> District created mitigation areas in 2002 to identify which permit holders<br />

would be held accountable <strong>for</strong> properties with wells that pre-date <strong>the</strong> farming activity’s<br />

water use. If a well within that permit holder’s mitigation area is unable to draw water as<br />

a result <strong>of</strong> <strong>the</strong> permittee's withdrawals and <strong>the</strong> well predates <strong>the</strong> farming activity, <strong>the</strong><br />

permittee is required to provide water to <strong>the</strong> affected well owner and to repair or provide<br />

reimbursement <strong>for</strong> <strong>the</strong> well. 1<br />

As a result <strong>of</strong> <strong>the</strong> 2010 11-day freeze event, District staff received 616 well complaints<br />

within a permittee’s mitigation area. One third <strong>of</strong> <strong>the</strong> well issues were temporary in nature,<br />

with approximately 413 requiring repair or replacement. Historically, when a well<br />

complaint is received, staff investigates whe<strong>the</strong>r <strong>the</strong> complaint falls within a permittee’s<br />

mitigation area and if so, and if <strong>the</strong>re are multiple overlapping mitigation areas, <strong>the</strong> complaint<br />

is assigned to <strong>the</strong> permit issued most recently with increased quantities. During<br />

this year’s freeze event, only 62 <strong>of</strong> <strong>the</strong> 447 agricultural permits were assigned well complaints<br />

to investigate, with one permittee receiving more than 125 well complaints, two<br />

with more than 75 and two with more than 50. A majority <strong>of</strong> <strong>the</strong> permits (86%) did not<br />

have well complaints assigned to <strong>the</strong>m under <strong>the</strong> District’s current protocol. The magnitude<br />

<strong>of</strong> this year’s freeze event, <strong>the</strong> large number <strong>of</strong> complaints assigned to a small<br />

number <strong>of</strong> permittees and <strong>the</strong> slow pace <strong>of</strong> mitigation activity caused reconsideration <strong>of</strong><br />

<strong>the</strong> District’s system <strong>for</strong> assigning well complaints. 2<br />

The result is <strong>the</strong> following revision to current rule regarding well complaints in <strong>the</strong> DPC<br />

WUCA.<br />

Well Construction Standards. The District adopted 40D-3.600, F.A.C., effective April 9,<br />

2002, that established well construction standards to ensure that wells built after <strong>the</strong> ef-<br />

44324-000R4.docx<br />

1 From <strong>the</strong> Frequently Asked Questions pdf file at<br />

http://www.swfwmd.state.fl.us/agriculture/freeze-management/<br />

2 From Southwest Florida Water Management District document called “Consideration <strong>of</strong> a More<br />

Equitable Approach <strong>for</strong> Assigning Well Mitigation Responsibility <strong>for</strong> Freeze Events in <strong>the</strong> <strong>Dover</strong> /<br />

<strong>Plant</strong> <strong>City</strong> Area, Team Leader - Alba Mas, March 22, 2010.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

fective date within portions <strong>of</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA (“Original <strong>Dover</strong> Area”) would<br />

not be impacted as a result <strong>of</strong> aquifer drawdown caused by pumping by ano<strong>the</strong>r legal<br />

water use. Effective August 17, 2010, <strong>the</strong> District amended 40D-3.600, F.A.C. to expand<br />

<strong>the</strong> well construction standards to <strong>the</strong> remaining areas <strong>of</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

(“Expanded <strong>Dover</strong> Area”). If <strong>the</strong> complainant’s well was constructed after April 9, 2002 or<br />

subsequently repaired in <strong>the</strong> Original <strong>Dover</strong> Area or constructed or repaired after August<br />

17, 2010 in <strong>the</strong> Expanded <strong>Dover</strong> Area, <strong>the</strong> complaint will not be assigned to a permittee<br />

<strong>for</strong> investigation.<br />

Method <strong>of</strong> Well Complaint Investigation. Permits in effect as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong><br />

<strong>the</strong> rule with a withdrawal located in <strong>the</strong> DPC WUCA shall have <strong>the</strong> following permit<br />

conditions removed: conditions requiring investigation <strong>of</strong> frost / freeze crop protection or<br />

crop establishment withdrawal-related well complaints or agricultural withdrawal-related<br />

complaints within a specified area or distance. These conditions will be replaced with <strong>the</strong><br />

following permit condition. In addition, permits issued on or after <strong>the</strong> effective date <strong>of</strong> <strong>the</strong><br />

rule or <strong>for</strong> uses permitted prior to <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule that include frost / freeze<br />

protection, crop protection, or crop establishment and do not have a specific condition<br />

requiring complaint investigations shall also include this permit condition.<br />

A. Well Evaluation and Temporary Supply. After <strong>the</strong> District receives a well complaint<br />

and determines that <strong>the</strong>re is a responsible permittee, as provided in subsection<br />

5, <strong>of</strong> Section 7.4 <strong>of</strong> <strong>the</strong> WUP BOR, incorporated by reference in 40D-2.091, F.A.C.,<br />

<strong>the</strong> District will <strong>the</strong>n notify <strong>the</strong> responsible permittee <strong>of</strong> <strong>the</strong> complaint. It will also in<strong>for</strong>m<br />

<strong>the</strong> complainant <strong>of</strong> <strong>the</strong> responsible permittee.<br />

1. Estimates <strong>of</strong> Repairs<br />

(a) The permittee shall arrange with <strong>the</strong> complainant <strong>for</strong> <strong>the</strong> evaluation and preparation<br />

<strong>of</strong> an estimate <strong>for</strong> restoration <strong>of</strong> water service to <strong>the</strong> complainant. The evaluation<br />

shall occur within 24 hours <strong>of</strong> <strong>the</strong> receipt <strong>of</strong> <strong>the</strong> complaint by <strong>the</strong> permittee, unless<br />

<strong>the</strong> complainant agrees to an alternative time period. The permittee shall notify <strong>the</strong><br />

District <strong>of</strong> <strong>the</strong> date and time <strong>for</strong> <strong>the</strong> evaluation <strong>of</strong> <strong>the</strong> complainant’s well. Selection <strong>of</strong><br />

a water well contractor to undertake ei<strong>the</strong>r <strong>the</strong> repair or replacement <strong>of</strong> <strong>the</strong> complainant’s<br />

well is at <strong>the</strong> discretion <strong>of</strong> <strong>the</strong> permittee, as long as <strong>the</strong> water well contractor<br />

has a license in good standing issued by a water management district. If only a pump<br />

repair is required, <strong>the</strong> person doing <strong>the</strong> repair shall have <strong>the</strong> appropriate occupational<br />

license.<br />

44324-000R4.docx<br />

(b) Alternatively, <strong>the</strong> complainant and <strong>the</strong> permittee can jointly arrange <strong>for</strong> <strong>the</strong> evaluation<br />

and preparation <strong>of</strong> an estimate to address <strong>the</strong> well complaint. If this option is chosen,<br />

<strong>the</strong>n <strong>the</strong> evaluation must occur within 24 hours <strong>of</strong> <strong>the</strong> receipt <strong>of</strong> <strong>the</strong> complaint by <strong>the</strong><br />

permittee, unless <strong>the</strong> complainant agrees to an alternative time period.<br />

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HAZEN AND SAWYER, P.C.


1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

(c) The permittee shall provide a temporary water supply to <strong>the</strong> complainant within five<br />

hours <strong>of</strong> <strong>the</strong> completion <strong>of</strong> <strong>the</strong> well evaluation and continue to provide <strong>the</strong> temporary<br />

water supply until water service is restored to <strong>the</strong> complainant’s well as long as <strong>the</strong><br />

complainant cooperates with <strong>the</strong> permittee in <strong>the</strong> repair <strong>of</strong> <strong>the</strong> complainant’s well.<br />

2. Restoration <strong>of</strong> Water Supply<br />

(a) If <strong>the</strong> evaluation indicates that groundwater pumping <strong>for</strong> frost/freeze crop protection<br />

resulted in loss <strong>of</strong> <strong>the</strong> complainant’s water service, <strong>the</strong> permittee shall pay <strong>for</strong> <strong>the</strong><br />

work necessary to restore water service to <strong>the</strong> complainant.<br />

(b) If <strong>the</strong> evaluation does not occur within 24 hours or within a longer time period agreed<br />

to by <strong>the</strong> complainant or temporary water supply is not provided, <strong>the</strong> complainant<br />

may arrange <strong>for</strong> <strong>the</strong> evaluation and repair or replacement <strong>of</strong> <strong>the</strong> well as necessary to<br />

restore water supply and a temporary water supply if needed. Once <strong>the</strong> complainant<br />

provides a detailed accounting <strong>of</strong> well repair or replacement expenditures, and expenses<br />

<strong>for</strong> a temporary water supply if applicable, to <strong>the</strong> District and <strong>the</strong> permittee,<br />

<strong>the</strong> permitteee shall reimburse <strong>the</strong> complainant within 30 business days <strong>of</strong> permittee’s<br />

receipt <strong>of</strong> <strong>the</strong> detailed accounting <strong>for</strong> <strong>the</strong> well or provide a report to <strong>the</strong> District<br />

within five days <strong>of</strong> <strong>the</strong> receipt by <strong>the</strong> permittee <strong>of</strong> disputed costs. This report shall<br />

detail why <strong>the</strong> permittee is not responsible <strong>for</strong> reimbursing all <strong>of</strong> <strong>the</strong> funds expended<br />

by <strong>the</strong> complainant <strong>for</strong> <strong>the</strong> well repair or replacement. The permittee shall provide a<br />

copy <strong>of</strong> this report to <strong>the</strong> complainant. The District will review <strong>the</strong> report and determine<br />

<strong>the</strong> appropriate reimbursement based on <strong>the</strong> cause <strong>of</strong> <strong>the</strong> well complaint and<br />

<strong>the</strong> appropriate remedy.<br />

44324-000R4.docx<br />

B. Pre-Complaint Repairs. If a complainant has expended funds <strong>for</strong> a well repair or<br />

replacement be<strong>for</strong>e submitting a well complaint to <strong>the</strong> District, and upon filing <strong>the</strong><br />

complaint within 14 days <strong>of</strong> <strong>the</strong> water use permittee’s pumping that resulted in interference,<br />

<strong>the</strong> District determines that <strong>the</strong>re is a responsible permittee as provided in<br />

subsection 5, <strong>of</strong> Section 7.4 <strong>of</strong> <strong>the</strong> WUP BOR described above, if <strong>the</strong> complainant<br />

provides a detailed accounting <strong>of</strong> expenditures <strong>for</strong> well repair or replacement, and <strong>for</strong><br />

a temporary water supply if applicable, <strong>the</strong>n <strong>the</strong> responsible permittee shall reimburse<br />

<strong>the</strong> complainant <strong>for</strong> its actual expenditures, not to exceed $1,500 within 30<br />

days <strong>of</strong> permittee’s receipt <strong>of</strong> <strong>the</strong> detailed accounting <strong>of</strong> <strong>the</strong> expenditures or provide<br />

a report to <strong>the</strong> District within seven days <strong>of</strong> <strong>the</strong> receipt by <strong>the</strong> permittee <strong>of</strong> disputed<br />

costs. This report shall detail why <strong>the</strong> permittee is not responsible <strong>for</strong> reimbursing all<br />

<strong>of</strong> <strong>the</strong> funds expended by <strong>the</strong> complainant <strong>for</strong> <strong>the</strong> well repair or replacement, and<br />

temporary water supply if applicable. The permittee shall provide a copy <strong>of</strong> this report<br />

to <strong>the</strong> complainant. The District will review <strong>the</strong> report and determine <strong>the</strong> appropriate<br />

reimbursement based on <strong>the</strong> cause <strong>of</strong> <strong>the</strong> well complaint and <strong>the</strong> appropriate<br />

remedy.<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

C. Permittee’s Mitigation Activities & Report.<br />

1. The permittee shall in<strong>for</strong>m <strong>the</strong> District as to how <strong>the</strong> permittee intends to proceed<br />

to mitigate <strong>the</strong> complaint within one business day after notice <strong>of</strong> responsibility to<br />

mitigate <strong>the</strong> complaint is delivered by <strong>the</strong> District to <strong>the</strong> permittee via electronic<br />

mail, phone call or message, or facsimile transmission, or within three business<br />

days after depositing a letter to permittee in <strong>the</strong> U.S. Mail.<br />

2. If <strong>the</strong> permittee in<strong>for</strong>ms <strong>the</strong> District that it has determined that it is not responsible<br />

<strong>for</strong> mitigation <strong>of</strong> <strong>the</strong> complaint, <strong>the</strong>n <strong>the</strong> permittee must provide a full explanation<br />

<strong>for</strong> its position. If, after <strong>the</strong> District has reviewed <strong>the</strong> permittee’s response, <strong>the</strong><br />

District determines that <strong>the</strong> permittee is still responsible <strong>for</strong> mitigating <strong>the</strong> complaint,<br />

<strong>the</strong> permittee shall proceed with full mitigation <strong>of</strong> <strong>the</strong> complaint as set <strong>for</strong>th<br />

in this condition.<br />

3. All well complaints shall be fully mitigated by <strong>the</strong> permittee as soon as is practicable.<br />

Full mitigation <strong>of</strong> <strong>the</strong> well complaint shall be restoration <strong>of</strong> <strong>the</strong> complainant’s<br />

well to pre-impact condition or better, including <strong>the</strong> pressure levels, discharge<br />

quantity, and water quality. Full mitigation <strong>of</strong> <strong>the</strong> well complaint necessitates <strong>the</strong><br />

construction <strong>of</strong> a new well <strong>for</strong> <strong>the</strong> complainant if <strong>the</strong> existing well cannot be restored<br />

to pre-impact condition.<br />

4. Within one business day after <strong>the</strong> complaint is fully mitigated, <strong>the</strong> permittee shall<br />

provide a report to <strong>the</strong> District in which <strong>the</strong> permittee details <strong>the</strong> activities undertaken<br />

by ei<strong>the</strong>r <strong>the</strong> complainant or <strong>the</strong> permittee to mitigate <strong>the</strong> complaint as well<br />

as any reimbursements made by <strong>the</strong> permittee to <strong>the</strong> complainant. The permittee<br />

shall provide a copy <strong>of</strong> this report to <strong>the</strong> complainant. The District will review <strong>the</strong><br />

report submitted by <strong>the</strong> permittee and may require additional action by <strong>the</strong> permittee<br />

if <strong>the</strong> District determines that <strong>the</strong> complaint has not been fully mitigated.<br />

D. If <strong>the</strong> permittee makes a good-faith ef<strong>for</strong>t to comply with <strong>the</strong> response process set<br />

<strong>for</strong>th above but is unable to repair or replace <strong>the</strong> well because <strong>of</strong> <strong>the</strong> lack <strong>of</strong> cooperation<br />

<strong>of</strong> <strong>the</strong> complainant, <strong>the</strong> permittee may request that <strong>the</strong> District deem <strong>the</strong> permittee<br />

to have satisfied this permit condition.<br />

44324-000R4.docx<br />

E. Time is <strong>of</strong> <strong>the</strong> essence <strong>of</strong> this permit condition and each <strong>of</strong> its provisions. For example,<br />

<strong>the</strong> full mitigation <strong>of</strong> a complaint does not excuse <strong>the</strong> failure to timely comply with<br />

each <strong>of</strong> <strong>the</strong> provisions <strong>of</strong> this condition.<br />

Mitigation <strong>of</strong> Impacts to Existing Legal Uses. Persons who believe that groundwater<br />

pumping by a water use permittee <strong>for</strong> crop establishment or frost / freeze protection has<br />

interfered with <strong>the</strong> person’s existing legal use <strong>of</strong> groundwater may seek mitigation based<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

upon <strong>the</strong> process set <strong>for</strong>th above. An example <strong>of</strong> interference with <strong>the</strong> person’s existing<br />

legal use <strong>of</strong> groundwater is that <strong>the</strong> person’s well pump no longer operates. In order to<br />

seek mitigation through this process such persons must provide <strong>the</strong> District with <strong>the</strong>ir<br />

name, address, phone number and <strong>the</strong> location <strong>of</strong> <strong>the</strong>ir affected groundwater well within<br />

14 days <strong>of</strong> <strong>the</strong> water use permittee’s pumping that resulted in <strong>the</strong> interference.<br />

1.11 Additional Permit Conditions<br />

Notice <strong>of</strong> Recovery Strategy. All new, renewal and existing permits located in <strong>the</strong> <strong>Dover</strong><br />

/ <strong>Plant</strong> <strong>City</strong> WUCA, or that are determined to impact <strong>the</strong> Minimum Aquifer Level or<br />

Minimum Aquifer Level Protection Zone, both with or without providing a Net Benefit, include,<br />

as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule, <strong>the</strong> following condition:<br />

This permit is located within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA or potentially impacts <strong>the</strong><br />

Minimum Aquifer Level or Minimum Aquifer Level Protection Zone <strong>for</strong> <strong>the</strong> <strong>Dover</strong> /<br />

<strong>Plant</strong> <strong>City</strong> WUCA. Pursuant to Section 373.0421, F.S., <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

is subject to a minimum levels recovery strategy that became effective on [effective<br />

date <strong>of</strong> rule]. As set <strong>for</strong>th in rule 40D-80.075, F.A.C., <strong>the</strong> recovery strategy, including<br />

water use permitting rules, is subject to change based on, among o<strong>the</strong>r criteria, <strong>the</strong><br />

Governing Board’s periodic assessment <strong>of</strong> water resource criteria and cumulative<br />

water withdrawal impacts as described in Chapter 40D-80, F.A.C. This permit is subject<br />

to modification to comply with new rules.<br />

Adverse Impacts. The following condition is removed from all existing permits located<br />

within <strong>the</strong> <strong>Dover</strong>/ <strong>Plant</strong> <strong>City</strong> WUCA, or that are determined to impact <strong>the</strong> Minimum Aquifer<br />

Level or Minimum Aquifer Level Protection Zone, both with or without providing a Net<br />

Benefit, as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule:<br />

The Permittee shall mitigate any adverse impact to environmental features or <strong>of</strong>fsite<br />

land uses as a result <strong>of</strong> withdrawals. When adverse impacts occur or are imminent,<br />

<strong>the</strong> District shall require <strong>the</strong> Permittee to mitigate <strong>the</strong> impacts. Adverse impact include<br />

<strong>the</strong> following:<br />

1. Significant reduction in levels or flows in water bodies such as lakes, impoundments,<br />

wetlands, springs, streams, or o<strong>the</strong>r watercourses.<br />

44324-000R4.docx<br />

2. Sinkholes or subsidence caused by reduction in water levels.<br />

3. Damage to crops and o<strong>the</strong>r vegetation causing financial harm to <strong>the</strong> owner.<br />

4. Damage to <strong>the</strong> habitat <strong>of</strong> endangered or threatened species.<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

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1.0 SUMMARY OF PROPOSED RULE JANUARY 2011<br />

All new, renewal and existing permits located in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, or that are<br />

determined to impact <strong>the</strong> Minimum Aquifer Level or Minimum Aquifer Level Protection<br />

Zone, both with or without providing a Net Benefit, include , as <strong>of</strong> [effective date <strong>of</strong> rule]<br />

<strong>the</strong> following condition:<br />

The Permittee shall mitigate any unacceptable adverse impact resulting from withdrawals<br />

to environmental features, Minimum Flows or Minimum Levels, or <strong>of</strong>fsite land uses,<br />

as specified in Ch. 40D-2.301(1)F.A.C., and <strong>the</strong> Water Use Permit In<strong>for</strong>mation Manual,<br />

Part B, <strong>the</strong> Basis <strong>of</strong> Review <strong>for</strong> Water Use Permit Applications, Chapter 4. Should unanticipated<br />

or unmitigated unacceptable adverse impacts occur, <strong>the</strong> Permittee shall be required<br />

to expeditiously mitigate <strong>the</strong> impacts.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 1-18<br />

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HAZEN AND SAWYER, P.C.


Chapter 2.0<br />

Number <strong>of</strong> Individuals and<br />

Entities Required to Comply<br />

The proposed rule addresses <strong>the</strong> impacts <strong>of</strong> ground water withdrawals <strong>for</strong> frost / freeze<br />

protection on ground water levels in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA (DPC WUCA). The<br />

individuals and entities required to comply with <strong>the</strong> proposed rule are limited to those<br />

who have or who will apply <strong>for</strong> a water use permit from <strong>the</strong> Southwest Florida Water<br />

Management District and who have water uses that meet specific criteria as summarized<br />

in Chapter 2.1 below.<br />

2.1 Summary <strong>of</strong> Proposed Rule Affecting Individuals and Entities<br />

According to Chapter 40D-2, F.A.C., Consumptive Use <strong>of</strong> Water, a water use permit<br />

(WUP) from <strong>the</strong> Southwest Florida Water Management District is required as follows.<br />

40D-2.041 Permits Required.<br />

1. Unless expressly exempted by law or District rule, a WUP must be obtained<br />

from <strong>the</strong> District prior to withdrawal <strong>of</strong> water if any <strong>of</strong> <strong>the</strong> following thresholds are<br />

exceeded:<br />

a. Total withdrawal capacity from any source or combined sources is greater<br />

than or equal to 1,000,000 gallons per day (gpd).<br />

b. Annual average daily withdrawal from any source or combined sources is<br />

greater than or equal to 100,000 gpd.<br />

c. Withdrawal is from a well having an outside diameter <strong>of</strong> 6 inches or more at<br />

<strong>the</strong> surface.<br />

d. Withdrawal is from a surface water body and <strong>the</strong> outside diameter <strong>of</strong> <strong>the</strong><br />

withdrawal pipe or <strong>the</strong> sum <strong>of</strong> <strong>the</strong> outside diameters <strong>of</strong> <strong>the</strong> withdrawal pipes<br />

is 4 inches or greater.<br />

44324-000R4.docx<br />

e. In addition to <strong>the</strong> thresholds set <strong>for</strong>th in paragraphs (1)(a) through (1)(d)<br />

above, a permit is required within <strong>the</strong> MIA as set <strong>for</strong>th in subparagraph 40D-<br />

2.801(3)(b)2., F.A.C., when withdrawal is from wells having a cumulative<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE 2-1<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

outside diameter greater than 6 inches at <strong>the</strong> surface any <strong>of</strong> which wells is<br />

constructed after April 11, 1994. This paragraph (e) shall not apply to any<br />

proposed well less than 6 inches in diameter at <strong>the</strong> surface when it is <strong>of</strong> <strong>the</strong><br />

same diameter or smaller than a well it replaces and an application to plug<br />

<strong>the</strong> replaced well in accordance with Rule 40D-3.531, F.A.C., is filed with<br />

<strong>the</strong> application to construct <strong>the</strong> replacement well in accordance with Rule<br />

40D-3.041, F.A.C.<br />

Individual homes and businesses that obtain water from a private well or from a surface<br />

water source are not required to have a water use permit as long as <strong>the</strong>y do not meet<br />

<strong>the</strong> criteria listed in 40D-2.041, F.A.C., Permits Required, as reprinted above.<br />

Water users who do not meet <strong>the</strong> criteria listed above are not required to have a water<br />

use permit and will not need to comply with <strong>the</strong> proposed rule.<br />

Water use permit applicants and water use permittees required to comply with one or<br />

more provisions <strong>of</strong> <strong>the</strong> proposed DPC WUCA rule are those that have or request to<br />

have:<br />

1. Permitted ground water withdrawals located within <strong>the</strong> DPC WUCA; or,<br />

2. Permitted ground water quantities outside <strong>of</strong> <strong>the</strong> DPC WUCA that have <strong>the</strong> potential<br />

to impact <strong>the</strong> DPC Minimum Aquifer Level Protection Zone.<br />

The major components <strong>of</strong> <strong>the</strong> proposed rule that illustrate <strong>the</strong> types <strong>of</strong> water use permittees<br />

required to comply are as follows.<br />

Water Use Permittees and Applicants. All applications to use ground water withdrawals<br />

<strong>for</strong> frost / freeze protection inside and outside <strong>the</strong> DPC WUCA will be evaluated <strong>for</strong><br />

impacts to <strong>the</strong> proposed <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Minimum Aquifer Level Protection Zone.<br />

However, <strong>the</strong> impacts <strong>of</strong> existing permitted quantities on <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone will not be a basis <strong>for</strong> permit denial because <strong>the</strong> DPC WUCA Recovery<br />

Strategy is intended to achieve recovery to <strong>the</strong> established minimum level as soon as<br />

practicable.<br />

44324-000R4.docx<br />

For existing water use permittees, applications <strong>for</strong> permit renewals or modifications with<br />

no proposed increase in permitted frost / freeze protection quantities or change in Use<br />

Type associated with frost / freeze protection will be evaluated to determine compliance<br />

with <strong>the</strong> conditions <strong>for</strong> permit issuance set <strong>for</strong>th in Rule 40D-2.301, F.A.C., which is not<br />

proposed to be changed, and <strong>the</strong> Water Use Permit Basis <strong>of</strong> Review in its entirety – as<br />

are all applications. When evaluating <strong>the</strong> reasonable-beneficial use <strong>of</strong> <strong>the</strong> water, emphasis<br />

will be given to reasonable water need, water conservation, use <strong>of</strong> alternative water<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

supplies, and use <strong>of</strong> alternative frost/freeze protection methods. As noted above, <strong>the</strong> existing<br />

impacts <strong>of</strong> permitted quantities on <strong>the</strong> Minimum Aquifer Level Protection Zone will<br />

not be a basis <strong>for</strong> permit denial because <strong>the</strong> DPC WUCA Recovery Strategy is intended<br />

to achieve recovery to <strong>the</strong> established minimum level as soon as practicable. Existing<br />

groundwater withdrawal impacts <strong>for</strong> frost/freeze protection shall be evaluated at renewal<br />

or modification based on a frost/freeze design event <strong>of</strong> 21 hours <strong>of</strong> irrigation, followed<br />

consecutively by 6 hours <strong>of</strong> non-irrigation, 13 hours <strong>of</strong> irrigation, 11 hours <strong>of</strong> nonirrigation<br />

and by 14 hours <strong>of</strong> irrigation.<br />

Requests <strong>for</strong> New Quantities. For New Quantities where new permitted water quantities<br />

<strong>for</strong> frost / freeze protection are requested, <strong>the</strong> resulting drawdown from withdrawals<br />

<strong>for</strong> frost / freeze protection shall not exceed 0.0 ft. at <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Minimum<br />

Aquifer Level Protection Zone. Applications <strong>for</strong> new ground water quantities <strong>for</strong> frost /<br />

freeze protection inside and outside <strong>the</strong> DPC WUCA that impact <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone cannot be permitted. The proposed use shall only be permitted if:<br />

1. The proposed ground water withdrawals do not impact <strong>the</strong> Minimum Aquifer<br />

Level Protection Zone; or,<br />

2. The applicant reduces or redistributes <strong>the</strong> withdrawals to eliminate any impacts<br />

so that <strong>the</strong> withdrawal can be permitted; or,<br />

3. The applicant demonstrates adequate alternative frost/freeze protection methods<br />

<strong>for</strong> <strong>the</strong> proposed use to eliminate any impacts so that <strong>the</strong> withdrawal can<br />

be permitted; or,<br />

4. The applicant implements a combination <strong>of</strong> (2) and (3) that does not result in an<br />

impact.<br />

Feasibility <strong>of</strong> Using Frost / Freeze Protection Alternatives to Water. The proposed<br />

rule includes a new requirement that certain water use permittees investigate <strong>the</strong> technical,<br />

economic and environmental feasibility <strong>of</strong> using alternatives to groundwater <strong>for</strong><br />

frost/freeze crop protection. These permittees have at least 100,000 gpd average annual<br />

daily permitted ground water quantities <strong>for</strong> an activity that typically uses frost / freeze<br />

protection and has or proposes to have a ground water withdrawal with <strong>the</strong> potential to<br />

impact <strong>the</strong> Minimum Aquifer Level Protection Zone.<br />

44324-000R4.docx<br />

Water Withdrawal Metering and Reporting. Metering <strong>of</strong> water withdrawals at all permitted<br />

water withdrawal points and <strong>the</strong> use <strong>of</strong> automated meter reading (AMR) devices<br />

will be required <strong>of</strong> permittees in <strong>the</strong> DPC WUCA with permitted ground water quantities<br />

that use or could use water <strong>for</strong> frost / freeze protection. These permittees have permitted<br />

ground water withdrawals <strong>for</strong> frost / freeze protection or <strong>the</strong>y have a water use permit <strong>for</strong><br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

supplemental irrigation using ground water and <strong>the</strong> crop typically requires frost / freeze<br />

protection. For all o<strong>the</strong>r individuals and entities with a water use permit <strong>for</strong> ground water<br />

quantities greater than or equal to 100,000 gallons per day (gpd) in <strong>the</strong> DPC WUCA, metering<br />

<strong>of</strong> all water withdrawals, but not <strong>the</strong> use <strong>of</strong> AMR devices, will be required under<br />

<strong>the</strong> proposed rule.<br />

For <strong>the</strong> types <strong>of</strong> individuals and entities identified above, <strong>the</strong>re are additional provisions<br />

<strong>of</strong> <strong>the</strong> proposed rule that may incur transactional costs that are addressed in Chapter 4.0<br />

Transactional <strong>Costs</strong>.<br />

2.2 Existing Water Use Permittees in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

The <strong>Dover</strong> and <strong>Plant</strong> <strong>City</strong> area, located between <strong>the</strong> <strong>City</strong> <strong>of</strong> Tampa and <strong>the</strong> <strong>City</strong> <strong>of</strong> Lakeland<br />

in Florida, is a mix <strong>of</strong> agricultural, residential and industrial land uses. <strong>Dover</strong> is an<br />

unincorporated area <strong>of</strong> Hillsborough County and <strong>Plant</strong> <strong>City</strong> is an incorporated city. This<br />

area is well-known <strong>for</strong> its valuable strawberry production and hosts <strong>the</strong> Annual Strawberry<br />

Festival each year.<br />

The number <strong>of</strong> water use permits that have at least one ground water withdrawal in <strong>the</strong><br />

DPC WUCA by water use category and whe<strong>the</strong>r <strong>the</strong>y will need to comply with <strong>the</strong> proposed<br />

rule is provided in Table 2.1. Water use permittees required to comply are those<br />

with average daily permitted ground water quantities <strong>of</strong> at least 100,000 gallons per day<br />

(gpd) or who have permitted ground water quantities <strong>for</strong> frost / freeze protection or who<br />

have uses that typically require frost / freeze protection. The numbers <strong>of</strong> <strong>the</strong>se permittees<br />

by water use category are provided in Column (2) <strong>of</strong> <strong>the</strong> table. The numbers <strong>of</strong> all<br />

o<strong>the</strong>r water use permittees in <strong>the</strong> DPC WUCA by water use category are provided in<br />

Column (3) and <strong>the</strong> total numbers by water use category are provided in Column (4) <strong>of</strong><br />

<strong>the</strong> table.<br />

As indicated in Column (4) <strong>of</strong> Table 2.1, <strong>the</strong>re are 660 water use permits in <strong>the</strong> DPC<br />

WUCA. Most <strong>of</strong> <strong>the</strong>se permits (581 out <strong>of</strong> 660 or 88 percent) are <strong>for</strong> agricultural production<br />

including crop irrigation, tropical fish farms, and livestock watering. The remaining<br />

permits are <strong>for</strong> public supply (34 permits), recreation / aes<strong>the</strong>tic (22 permits), and industrial<br />

/ commercial (23 permits) water uses.<br />

44324-000R4.docx<br />

There are 547 existing water use permittees who will be required to comply with <strong>the</strong> proposed<br />

rule. Most <strong>of</strong> <strong>the</strong>se permittees, or 95 percent, use water <strong>for</strong> agricultural crop irrigation.<br />

The remaining permittees are tropical fish farms (7 permits under Agricultural), public<br />

supply (10 permits), industrial / commercial (6 permits) and recreation / aes<strong>the</strong>tic (4<br />

permits).<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-4<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

There are 113 water use permittees who are not required to comply with <strong>the</strong> proposed<br />

rule. However, <strong>the</strong>y will need to comply if <strong>the</strong>y add or change crops or use types such<br />

that frost/freeze protection is needed. About 50 percent <strong>of</strong> <strong>the</strong>se permittees use water <strong>for</strong><br />

agricultural production.<br />

Table 2.1<br />

Number <strong>of</strong> Water Use Permits with Ground Water Withdrawals in <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA By Water Use Category and Need to Comply (a)<br />

Water Use Category<br />

Need to Comply<br />

with Proposed<br />

Rule (b)<br />

Number <strong>of</strong> Permits<br />

Do Not Need to<br />

Comply with<br />

Proposed Rule (c)<br />

Total<br />

(1) (2) (3) (4)<br />

Recreation / Aes<strong>the</strong>tic 4 18 22<br />

Agricultural 527 54 581<br />

Industrial / Commercial 6 17 23<br />

Public Supply 10 24 34<br />

Mining / Dewatering 0 0 0<br />

Total 547 113 660<br />

(a Based on permit data from Southwest Florida Water Management Water Use Permit<br />

Database as <strong>of</strong> August 2010.<br />

(b)<br />

(c)<br />

These permits have greater than 100,000 gpd average daily permitted water quantity<br />

or have permitted water quantities <strong>for</strong> frost / freeze protection or <strong>the</strong> use typically requires<br />

frost / freeze protection.<br />

Unless <strong>the</strong>y request new ground water quantities such that <strong>the</strong>ir average daily withdrawal<br />

increases to at least 100,000 gpd or <strong>the</strong>y change crops or use type such that<br />

frost/freeze protection is needed. These permits have less than 100,000 gpd average<br />

daily permitted water quantity and do not need frost / freeze protection.<br />

44324-000R4.docx<br />

Most <strong>of</strong> <strong>the</strong> permittees who need to comply have permitted ground water withdrawals <strong>for</strong><br />

frost / freeze quantities. This is demonstrated in Table 2.2 where <strong>the</strong> number <strong>of</strong> permits<br />

with at least 100,000 gpd and less than 100,000 gpd and that have frost / freeze quantities<br />

or who grow crops that typically require frost / freeze quantities by water use category<br />

are provided. Of <strong>the</strong> 543 existing water use permittees who will need to comply with<br />

<strong>the</strong> proposed rule, 505 have permitted ground water withdrawals <strong>for</strong> frost / freeze protection.<br />

Only 26 permits have no permitted quantities <strong>for</strong> frost / freeze protection but grow<br />

crops or fish that typically require frost / freeze protection.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-5<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

Table 2.2<br />

Number <strong>of</strong> Water Use Permits With Ground Water Withdrawals in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

WUCA by Water Use Category, Size <strong>of</strong> Permitted Quantity and <strong>the</strong> Frost / Freeze Criteria<br />

Use Category<br />

Number <strong>of</strong> Permits by Average<br />

Daily Permitted Quantity<br />

At Least<br />

100,000<br />

gpd<br />

Less than<br />

100,000<br />

gpd<br />

Total<br />

Number <strong>of</strong> Permits by Frost /<br />

Freeze (F/F) Criteria<br />

Has<br />

Permitted<br />

F/F<br />

Quantities<br />

No Permitted<br />

F/F but<br />

Typically<br />

Requires F/F<br />

Protection<br />

Recreation / Aes<strong>the</strong>tic 4 18 22 0 0 0<br />

Agricultural 105 476 581 505 26 531<br />

Industrial / Commercial 6 17 23 0 0 0<br />

Public Supply 10 24 34 0 0 0<br />

Total 125 535 660 505 26 531<br />

Total<br />

Source: Based on water use permit data provided by <strong>the</strong> Southwest Florida Water Management District from <strong>the</strong>ir<br />

database. Extracted in September 2010.<br />

As demonstrated in Table 2.3, most <strong>of</strong> <strong>the</strong> water use permits in <strong>the</strong> DPC WUCA are located<br />

in ei<strong>the</strong>r <strong>the</strong> Nor<strong>the</strong>rn Tampa Bay WUCA (NTB WUCA) or <strong>the</strong> Sou<strong>the</strong>rn WUCA<br />

(SWUCA). Of <strong>the</strong> 606 permits, 453 are located in <strong>the</strong> NTB WUCA and 77 are located in<br />

<strong>the</strong> SWUCA.<br />

Table 2.3<br />

Number <strong>of</strong> Water Use Permits With Ground Water Withdrawals in <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA That Are In <strong>the</strong> NTB WUCA or <strong>the</strong> SWUCA<br />

Use Category NTB WUCA SWUCA No WUCA Total<br />

Recreation / Aes<strong>the</strong>tic 9 6 7 22<br />

Agricultural 415 58 108 581<br />

Industrial / Commercial 11 8 4 23<br />

Public Supply 18 5 11 34<br />

Total 453 77 130 660<br />

Source: Based on water use permit data provided by <strong>the</strong> Southwest Florida Water Management<br />

District from <strong>the</strong>ir database. Extracted in September 2010.<br />

44324-000R4.docx<br />

As indicated above, most <strong>of</strong> <strong>the</strong> permittees required to comply with <strong>the</strong> proposed rule<br />

use ground water <strong>for</strong> irrigating agricultural crops. A snapshot <strong>of</strong> <strong>the</strong> types <strong>of</strong> crops and<br />

landscaping grown by all water use permittees in <strong>the</strong> DPC WUCA by irrigation method is<br />

provided in Table 2.4. The table shows that <strong>the</strong> most common crops irrigated are strawberries<br />

and citrus with 34 percent and 24 percent, respectively, <strong>of</strong> total crop and land-<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-6<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

scape acreage irrigated. Bear in mind that some farmers plant two crops on <strong>the</strong>ir fields<br />

each year so <strong>the</strong> total acres irrigated as indicated in <strong>the</strong> last row <strong>of</strong> <strong>the</strong> table can include<br />

double-counting <strong>of</strong> some land. The table also shows that drip and low volume irrigation<br />

systems are <strong>the</strong> most commonly used methods to irrigate agricultural crops. About 85<br />

percent <strong>of</strong> all crops are irrigated using drip or low volume methods. Sprinkler irrigation<br />

methods are most commonly used to irrigate golf courses, lawns, landscapes, cemeteries,<br />

parks, playgrounds, and sports fields.<br />

44324-000R4.docx<br />

Table 2.4<br />

Number <strong>of</strong> Acres Irrigated in <strong>the</strong> DPC WUCA by Crop or Landscape Irrigated and<br />

Irrigation Method - Water Use Permits with Ground Water Quantities (a)<br />

Crop or Landscape Irrigated<br />

Number <strong>of</strong> Acres Irrigated by Irrigation Method<br />

Sprinkler<br />

Drip or Low<br />

Volume O<strong>the</strong>r Total<br />

Percent <strong>of</strong><br />

Total Acres<br />

Strawberries 777 6,837 0 7,613 34%<br />

Orchards, predominately Citrus (b) 424 4,656 168 5,248 24%<br />

Tomatoes 71 1,454 0 1,525 7%<br />

Cucumbers 0 1,225 0 1,225 6%<br />

O<strong>the</strong>r Vegetables (c) 618 2,237 36 2,892 13%<br />

Melons 20 1,200 0 1,220 5%<br />

Nursery 563 374 23 961 4%<br />

Golf Course 411 0 0 411 2%<br />

Lawn / Landscape 253 6 0 259 1%<br />

Pasture 64 0 177 241 1%<br />

Blueberries 100 76 0 176 1%<br />

Cemetery / Parks / Playgrounds /<br />

Sports Fields 117 0 0 117 1%<br />

O<strong>the</strong>r Crops Irrigated (d) 184 45 42 270 1%<br />

Total 3,602 18,110 446 22,158 100%<br />

(a)<br />

(b)<br />

(c)<br />

(d)<br />

Based on <strong>the</strong> water use permit in<strong>for</strong>mation provided by <strong>the</strong> Southwest Florida Water Management District from its<br />

database in 2010. Many farms produce two crops on <strong>the</strong> same land during <strong>the</strong> year and this is reflected in <strong>the</strong> table.<br />

For example, a 10 acre farm growing strawberries and a vegetable crop on <strong>the</strong> same land during <strong>the</strong> year will<br />

have 20 acres reflected in this table.<br />

Most <strong>of</strong> this acreage (5,267 acres) is in citrus.<br />

"O<strong>the</strong>r vegetables" includes beans, cauliflower, eggplant, peppers, small vegetables, onions, peas, snow peas,<br />

zucchini, squash, sweet corn and oriental vegetables.<br />

"O<strong>the</strong>r crops irrigated" includes commercial hay, cover crop, peanuts, vineyards, sod, and spray mix <strong>for</strong> crops.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-7<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

The acreage distribution <strong>of</strong> strawberry farms in <strong>the</strong> DPC WUCA is provided in Table 2.5.<br />

Almost 60 percent <strong>of</strong> <strong>the</strong>se farms are 20 acres or less. The strawberry farm sizes range<br />

from 3 to 190 acres with an average size <strong>of</strong> 27 acres and a median size <strong>of</strong> 18 acres.<br />

Table 2.5<br />

Acreage Distribution <strong>of</strong> Strawberry Production by Water Use<br />

Permittees in <strong>the</strong> DPC WUCA<br />

Number <strong>of</strong> % <strong>of</strong> Number<br />

Acreage Range<br />

Permits Permits <strong>of</strong> Acres<br />

Less than or equal to 5 acres 12 4% 49<br />

Greater than 5 to 10 acres 55 20% 451<br />

Greater than 10 to 20 acres 97 35% 1,519<br />

Greater than 20 to 30 acres 35 13% 905<br />

Greater than 30 to 40 acres 34 12% 1,180<br />

Greater than 40 to 50 acres 14 5% 647<br />

Greater than 50 to 100 acres 22 8% 1,576<br />

Greater than 100 to 190 acres 9 3% 1,352<br />

Total 278 100% 7,679<br />

Minimum Acres 3<br />

Maximum Acres 190<br />

Average Acres 27<br />

Median Acres 18<br />

Summary statistics <strong>of</strong> <strong>the</strong> property acreage associated with agricultural water use permits<br />

with permitted ground water withdrawals in <strong>the</strong> DPC WUCA are provided in Table<br />

2.6. While <strong>the</strong>se water use permits include crop irrigation, tropical fish farms, and livestock<br />

watering, <strong>the</strong> vast majority <strong>of</strong> permits are <strong>for</strong> crop irrigation. Only 29 and 7 <strong>of</strong> agricultural<br />

permits include withdrawals <strong>for</strong> livestock watering and tropical fish farms, respectively.<br />

Of <strong>the</strong> 581 agricultural water use permits, property acreage data was available<br />

<strong>for</strong> 558 and <strong>the</strong> data <strong>for</strong> <strong>the</strong>se permits is reflected in <strong>the</strong> table. The property acreage<br />

<strong>of</strong> <strong>the</strong> agricultural permits ranges from 0.7 acres to 1,771 acres per permit. The average<br />

property acreage per permit is 48 and <strong>the</strong> median is 25.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-8<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

Table 2.6<br />

Total Property Acreage <strong>of</strong> Agricultural Permits<br />

in <strong>the</strong> DPC WUCA (a)<br />

Statistic<br />

Acres<br />

Minimum 0.7<br />

Maximum 1,771<br />

Average 48<br />

Median 25<br />

(a)<br />

Of <strong>the</strong> 558 water use permits <strong>for</strong> which total property<br />

acreage was available. The total number <strong>of</strong><br />

agricultural permits is 581. Based on permit data<br />

from Southwest Florida Water Management Water<br />

Use Permit Database as <strong>of</strong> August 2010.<br />

The distribution <strong>of</strong> all agricultural water use permits by total property acreage ranges is<br />

provided in Table 2.7. About one-fourth <strong>of</strong> <strong>the</strong> permits represent farm sizes from 25 to 50<br />

acres. Farms up to 10 acres in size comprise about 18 percent <strong>of</strong> <strong>the</strong> permits. Only one<br />

percent <strong>of</strong> <strong>the</strong> permits have a total property acreage greater than 500 acres.<br />

44324-000R4.docx<br />

Table 2.7<br />

Total Property Acreage Distribution <strong>of</strong> Agricultural Water<br />

Use Permits In <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

Total Property Acreage Range<br />

Number <strong>of</strong><br />

Permits<br />

% <strong>of</strong> Agricultural<br />

Permits<br />

Up to 10 acres 101 18%<br />

Greater than 10 to 15 acres 59 11%<br />

Greater than 15 to 20 acres 86 15%<br />

Greater than 20 to 25 acres 44 8%<br />

Greater than 25 acres to 50 acres 147 26%<br />

Greater than 50 acres to 100 acres 80 14%<br />

Greater than 100 acres to 500 acres 36 6%<br />

Greater than 500 acres 5 1%<br />

Total 558 100%<br />

(a)<br />

Of <strong>the</strong> 558 water use permits <strong>for</strong> which total property acreage was available. The total<br />

number <strong>of</strong> agricultural permits is 581. Based on permit data from Southwest Florida Water<br />

Management Water Use Permit Database as <strong>of</strong> August 2010.<br />

Descriptions <strong>of</strong> all water use permits that have permitted ground water quantities in <strong>the</strong><br />

DPC WUCA <strong>for</strong> uses o<strong>the</strong>r than crop or landscape irrigation are provided in Table 2.8.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-9<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

This table provides <strong>the</strong> number <strong>of</strong> permits by predominant water use type. Bear in mind<br />

that this table includes crop and landscape irrigation permits that have non-irrigation<br />

uses on <strong>the</strong> permit. Each permit is counted only once in <strong>the</strong> table. The most common<br />

permitted non-irrigation water use is <strong>for</strong> public water supply with 80 permits, or 57 percent<br />

<strong>of</strong> <strong>the</strong> 141 permits. Public water supply includes regional water supply system and<br />

personal sanitary use associated with residential communities, schools, and a single<br />

business or individual dwelling associated with <strong>the</strong> permit. The second most common<br />

non-irrigation water use is animal watering and cooling with 29 permits or 21 percent <strong>of</strong><br />

<strong>the</strong> 141 permits. The remaining non-irrigation water uses include fire protection, fighting<br />

and testing; tropical fish farms; augmentation <strong>for</strong> environmental purposes; and general<br />

product manufacturing, among o<strong>the</strong>rs.<br />

44324-000R4.docx<br />

Water Use Type<br />

Table 2.8<br />

Number <strong>of</strong> Water Use Permits in <strong>the</strong> DPC WUCA<br />

That have Non-Irrigation Water Use Types (a)<br />

Public water supply <strong>for</strong> residential or sanitary use or<br />

<strong>for</strong> a regional water supply system (c)<br />

Number <strong>of</strong><br />

Permits (b)<br />

Percent <strong>of</strong><br />

141 Permits<br />

80 57%<br />

Animal Watering and Cooling 29 21%<br />

Fire Protection, Fire Fighting and Testing 8 6%<br />

Tropical Fish Farms 7 5%<br />

O<strong>the</strong>r (Non-Crop Miscellaneous Water Needs) 3 2.1%<br />

Augmentation <strong>for</strong> Environmental 3 2.1%<br />

General Product Manufacturing 3 2.1%<br />

Perishable Food Processing 2 1.4%<br />

Truck Crop Packing 1 0.7%<br />

Cements or Concrete Products 1 0.7%<br />

Dilution 1 0.7%<br />

Lime Processing Preparation (Food, Fertilizer, Water) 1 0.7%<br />

Phosphate Chemical Processing 1 0.7%<br />

Temporary Employee Housing 1 0.7%<br />

Total 141 100%<br />

(a)<br />

(b)<br />

(c)<br />

Based on <strong>the</strong> water use permit in<strong>for</strong>mation provided by <strong>the</strong> Southwest Florida Water<br />

Management District from its database in 2010.<br />

A permit is counted only once in this table based on <strong>the</strong> largest amount <strong>of</strong> water permitted<br />

to that use on <strong>the</strong> permit o<strong>the</strong>r than an irrigated crop or landscape use. This table includes<br />

crop and landscape irrigation permits that have non-irrigation uses on <strong>the</strong> permit.<br />

Public water supply includes regional water supply system and personal sanitary use<br />

associated with residential communities, schools, and a single business or individual<br />

dwelling associated with <strong>the</strong> permit.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-10<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

2.3 Future Water Use Permit Applicants in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA<br />

The number <strong>of</strong> future applicants <strong>for</strong> new ground water withdrawals <strong>for</strong> frost / freeze protection<br />

in <strong>the</strong> DPC WUCA is not known. Given <strong>the</strong> number <strong>of</strong> water use permits issued<br />

over <strong>the</strong> past ten years and <strong>the</strong> amount <strong>of</strong> undeveloped land that could be developed in<br />

<strong>the</strong> future, it is likely that applicants will request new ground water quantities in <strong>the</strong> DPC<br />

WUCA. If <strong>the</strong>se applicants request ground water <strong>for</strong> uses that typically require frost /<br />

freeze protection, <strong>the</strong>n <strong>the</strong>y will be required to comply with <strong>the</strong> proposed rule. Future<br />

applicants with average daily permitted water quantities greater than or equal to 100,000<br />

gpd will be required to install and maintain water flow meters and provide flow meter<br />

readings to <strong>the</strong> District.<br />

An historic picture <strong>of</strong> <strong>the</strong> number <strong>of</strong> new water use permits approved in <strong>the</strong> DPC WUCA<br />

over <strong>the</strong> past 10 years by type <strong>of</strong> water use permit is provided in Table 2.9. There are<br />

three types <strong>of</strong> water use permits based primarily on <strong>the</strong> amount <strong>of</strong> water needed <strong>for</strong> a<br />

year: (1) Individual - 500,000 gpd or more; (2) General - 100,000 gpd or more, but less<br />

than 500,000 gpd (also includes some uses less than 100,000 gpd); and (3) Small general<br />

- most uses less than 100,000 gpd. All three types <strong>of</strong> permits can have permitted<br />

quantities <strong>for</strong> frost / freeze protection.<br />

The table shows that over <strong>the</strong> past ten years, from 2000 to 2009, 47 water use permits<br />

were approved in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA. Of <strong>the</strong>se, 38 were agricultural permits; 5<br />

were industrial and commercial permits; 0 were mining and dewatering permits; 1 was a<br />

public supply permit; and 3 were recreation / aes<strong>the</strong>tic permits. Most <strong>of</strong> <strong>the</strong>se permits<br />

are <strong>for</strong> ground water quantities.<br />

44324-000R4.docx<br />

Table 2.9<br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area<br />

Number <strong>of</strong> New Water Use Permits Approved from 2000 to 2009 (a)<br />

Water Use Category<br />

WUP Type<br />

Individual General Small General<br />

Agricultural 0 9 29 38<br />

Industrial and Commercial 0 0 5 5<br />

Mining and Dewatering 0 0 0 0<br />

Public Supply 0 1 0 1<br />

Recreation and Aes<strong>the</strong>tic 0 0 3 3<br />

Total 0 10 37 47<br />

Total<br />

(a) From Southwest Florida Water Management District accessed via SAS on October 1, 2010.<br />

Dividing <strong>the</strong>se numbers by 10 years provides <strong>the</strong> average annual number <strong>of</strong> water use<br />

permits approved in <strong>the</strong> DPC WUCA. This calculation is provided in Table 2.10. On av-<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-11<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

erage, 4.7 water use permits were approved each year. Of <strong>the</strong>se, 3.8 were agricultural<br />

permits and less than one each was industrial / commercial, public supply and recreation<br />

/ aes<strong>the</strong>tic. These agricultural permittees may grow crops that need frost / freeze protection.<br />

So if history is an indication <strong>of</strong> <strong>the</strong> future, <strong>the</strong>n it is likely that <strong>the</strong>re will be future applications<br />

<strong>for</strong> new ground water quantities where <strong>the</strong> applicant will need to comply with<br />

<strong>the</strong> proposed rule.<br />

Table 2.10<br />

<strong>Dover</strong> <strong>Plant</strong> <strong>City</strong> Water Use Caution Area<br />

Average Annual Number <strong>of</strong> Water Use Permits Approved from 2000 to 2009 (a)<br />

Water Use Category<br />

WUP Type<br />

Individual General Small General<br />

Average<br />

Agricultural 0.00 0.90 2.90 3.80<br />

Industrial and Commercial 0.00 0.00 0.50 0.50<br />

Mining and Dewatering 0.00 0.00 0.00 0.00<br />

Public Supply 0.00 0.10 0.00 0.10<br />

Recreation and Aes<strong>the</strong>tic 0.00 0.00 0.30 0.30<br />

Average 0.00 1.00 3.70 4.70<br />

(a) From Southwest Florida Water Management District accessed via SAS on October 1, 2010.<br />

A review <strong>of</strong> <strong>the</strong> property records from <strong>the</strong> Property Appraisers’ <strong>of</strong>fices <strong>of</strong> Hillsborough<br />

and Polk counties found that 32 percent <strong>of</strong> <strong>the</strong> land area in <strong>the</strong> DPC WUCA is ei<strong>the</strong>r vacant;<br />

pasture or grazing land; timber land; or vacant acreage not zoned agricultural. This<br />

32 percent is about 55,000 acres <strong>of</strong> <strong>the</strong> approximately 172,000 acres that comprise <strong>the</strong><br />

DPC WUCA. While it is not known how quickly this land will develop or what <strong>the</strong> developed<br />

land uses will be, it is likely that a water supply source will be needed to support<br />

<strong>the</strong> land uses be <strong>the</strong>y agricultural, public supply, recreation / aes<strong>the</strong>tic, or industrial /<br />

commercial. However, <strong>the</strong> number <strong>of</strong> future applications <strong>for</strong> New Quantities <strong>for</strong> frost /<br />

freeze protection and <strong>the</strong> number <strong>of</strong> new water use permittees with average daily permitted<br />

withdrawals greater than 100,000 gpd are not known.<br />

44324-000R4.docx<br />

The number <strong>of</strong> vacant and undeveloped properties and acreage <strong>of</strong> <strong>the</strong>se land uses in<br />

<strong>the</strong> Hillsborough County portion <strong>of</strong> <strong>the</strong> DPC WUCA is provided in Table 2.11. The total<br />

land area that is vacant or undeveloped in <strong>the</strong> Hillsborough County portion <strong>of</strong> <strong>the</strong> DPC<br />

WUCA comprises 27 percent <strong>of</strong> <strong>the</strong> land area in <strong>the</strong> DPC WUCA. Most <strong>of</strong> <strong>the</strong> 46,674<br />

acres <strong>of</strong> vacant or undeveloped land is grazing land or pasture that comprises 33,652<br />

acres or 72 percent.<br />

The number <strong>of</strong> vacant and undeveloped properties and acreage <strong>of</strong> <strong>the</strong>se land uses in<br />

<strong>the</strong> Polk County portion <strong>of</strong> <strong>the</strong> DPC WUCA is provided in Table 2.12. The total land area<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-12<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

that is vacant or undeveloped in <strong>the</strong> Polk County portion <strong>of</strong> <strong>the</strong> DPC WUCA comprises<br />

about 5 percent <strong>of</strong> <strong>the</strong> land area in <strong>the</strong> DPC WUCA. About half <strong>of</strong> <strong>the</strong> 8,160 acres <strong>of</strong> vacant<br />

or undeveloped land is grazing land or pasture that comprises 4,420 acres.<br />

Property Use (b)<br />

Table 2.11<br />

Number <strong>of</strong> Vacant and Undeveloped Properties and Acreage in <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, Hillsborough County, by Property Use (a)<br />

DOR Use<br />

Code<br />

Number <strong>of</strong><br />

Properties<br />

Acreage<br />

Average<br />

Acres Per<br />

Property<br />

% <strong>of</strong> Land in<br />

DPC WUCA<br />

(<strong>of</strong> 172,000<br />

acres)<br />

Number <strong>of</strong><br />

Landowners<br />

Vacant, Residential 0000 2,888 3,082 1.07 2% 3,925<br />

Vacant, Commercial 1000 403 603 1.50 0.4% 482<br />

Vacant, Industrial 4000 76 581 7.65 0.3% 85<br />

Timberland 5900 23 403 17.54 0.2% 31<br />

Grazing Land 6000 1,966 33,652 17.12 20% 2,947<br />

Acreage Not Zoned<br />

Agricultural 9900 1,376 8,353 6.07 5% 1,955<br />

Total 6,732 46,674 6.93 27% 9,425<br />

(a)<br />

(b)<br />

The values in this table are based on land property data <strong>of</strong> all land in <strong>the</strong> Hillsborough County portion <strong>of</strong> <strong>the</strong> <strong>Dover</strong><br />

/ <strong>Plant</strong> <strong>City</strong> WUCA. The land property and GIS data were obtained from <strong>the</strong> Hillsborough County Property Appraiser's<br />

database obtained from this <strong>of</strong>fice in August 2010.<br />

Privately owned land only. Does not include any land owned by State or local governments.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-13<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


2.0 NUMBER OF INDIVIDUALS AND ENTITIES REQUIRED TO COMPLY JANUARY 2011<br />

Property Use<br />

Table 2.12<br />

Number <strong>of</strong> Properties and Acreage Associated with Vacant and<br />

Undeveloped Land Uses in <strong>the</strong> Polk County Portion <strong>of</strong> <strong>the</strong> DPC WUCA (a)<br />

Use Code<br />

Number <strong>of</strong><br />

Properties (b)<br />

Acres<br />

Average<br />

Acres Per<br />

Property<br />

% <strong>of</strong> Land In<br />

DPC WUCA (<strong>of</strong><br />

172,000 acres)<br />

Inaccessible tracts 9910 1 1 1 0.00%<br />

Pasture 6000 113 4,420 39 2.57%<br />

Pasture w/Commercial 6070 2 107 53 0.06%<br />

Pasture w/Misc.Imp. 6004 11 564 51 0.33%<br />

Pasture w/Mobile Home 6006 7 147 21 0.09%<br />

Pasture w/Residence 6005 52 904 17 0.53%<br />

Pasture w/Und Lnd w/MH 6016 1 20 20 0.01%<br />

Pasture w/Undev. Land 6010 5 639 128 0.37%<br />

Phosphate Land 9200 5 55 11 0.03%<br />

Recreational Land (Private) 9940 3 6 2 0.00%<br />

Timberland 5490 1 17 17 0.01%<br />

Unplatted tracts 10 - 29.99 acres 9920 14 249 18 0.14%<br />

Unplatted tracts 30 to 59.99 acres 9925 2 72 36 0.04%<br />

Unplatted tracts 60 - 99.99 acres 9930 1 71 71 0.04%<br />

Unplatted up to 10 acres 9900 89 350 4 0.20%<br />

Vac. Res. 0001 537 410 1 0.24%<br />

Vacant Commercial 1000 28 129 5 0.07%<br />

Total 872 8,160 9 4.74%<br />

(a)<br />

(b)<br />

The values in this table are based on land property data <strong>of</strong> all land in <strong>the</strong> Polk County portion <strong>of</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong><br />

<strong>City</strong> WUCA. The land property and GIS data was obtained from <strong>the</strong> Polk County Property Appraiser's database<br />

obtained from <strong>the</strong>ir website in September 2010.<br />

There is only one property owner name listed <strong>for</strong> each property.<br />

44324-000R4.docx<br />

2.4 Existing and Future Water Use Permit Applicants Outside <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong><br />

<strong>City</strong> WUCA<br />

The number and locations <strong>of</strong> water use permit applicants outside <strong>the</strong> DPC WUCA whose<br />

requested ground water withdrawals <strong>for</strong> frost / freeze protection would impact <strong>the</strong> DPC<br />

Minimum Aquifer Level Protection Zone is not known. The extent to which New Quantities<br />

would impact <strong>the</strong> Zone will depend on <strong>the</strong> size and location <strong>of</strong> <strong>the</strong> requested withdrawal.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 2-14<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


Chapter 3.0<br />

Cost to <strong>the</strong> District and to Any O<strong>the</strong>r<br />

State and Local Government Entities<br />

The proposed rule is expected to incur costs to <strong>the</strong> District but not to any o<strong>the</strong>r State or<br />

local government entity unless that entity is a water use permittee or applicant. The proposed<br />

rule is not expected to have any effect on State or local government revenues.<br />

3.1 Cost to <strong>the</strong> Southwest Florida Water Management District<br />

The District will implement and en<strong>for</strong>ce <strong>the</strong> proposed rule. In addition, <strong>the</strong> District will<br />

provide <strong>for</strong> <strong>the</strong> flow meters at withdrawal points <strong>of</strong> existing permittees under certain con-<br />

ditions as specified in <strong>the</strong> proposed rule. The District will also install, maintain, repair<br />

and replace automatic meter reading (AMR) devices <strong>for</strong> those permittees required to<br />

have <strong>the</strong>se devices under <strong>the</strong> proposed rule. The District will purchase <strong>the</strong> annual subscription<br />

service that will collect <strong>the</strong> water flow and related data from <strong>the</strong> AMR devices.<br />

The total estimated cost to <strong>the</strong> District associated with <strong>the</strong> DPC WUCA Rule is com-<br />

prised <strong>of</strong> a one-time cost <strong>of</strong> $1.8 million and an annual cost <strong>of</strong> $1.36 million as summarized<br />

in Table 3.1. Most <strong>of</strong> this cost is associated with <strong>the</strong> provision <strong>of</strong> automatic meter<br />

reading (AMR) devices and <strong>the</strong> collection <strong>of</strong> water flow and related data from <strong>the</strong>se de-<br />

vices.<br />

Based on previous experience, about 1.00 full-time-equivalentequivalent in District staff time during<br />

<strong>the</strong> first two years after <strong>the</strong> rule is adopted will be required to supervise and manage <strong>the</strong><br />

contractors’ installation and maintenance <strong>of</strong> <strong>the</strong> meters and <strong>the</strong> AMR devices. The types<br />

<strong>of</strong> staff positions that would provide this service include a project manager, a field tech-<br />

nician and an administrative assistant. In addition, about 2.22 full-time-equivalents in<br />

District staff time will be required to manage <strong>the</strong> AMR data collection and o<strong>the</strong>r com-<br />

pliance responsibilities each year. The types <strong>of</strong> staff positions include field and data<br />

technicians.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE 3-1<br />

HAZEN AND SAWYER, P.C.


3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

Table 3.1<br />

Total <strong>Estimated</strong> Cost to <strong>the</strong> District<br />

Associated with <strong>the</strong> DPC WUCA Rule<br />

Program One-Time Cost Annual Cost<br />

Flow meters $1,546,750 $0<br />

Automatic Meter Reading Devices $126,000 $1,352,568<br />

District administration <strong>of</strong> flow meter<br />

and AMR device installation $148,358 $0<br />

Allocation <strong>of</strong> Well Complaints $0 $4,445<br />

Total Cost to District $1,821,108 $1,357,013<br />

The estimated costs to <strong>the</strong> District are described in detail as follows.<br />

Flow Meter Purchase and Installation. For permits existing as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong><br />

<strong>the</strong> rule, <strong>the</strong> District will provide <strong>for</strong> <strong>the</strong> flow meters on withdrawal points, inflow lines,<br />

catchment facility, tailwater recovery or rainfall capture pond and storage facility in existence<br />

prior to <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule that are not equipped with and not required by<br />

District rule as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule to have a flow meter.<br />

The estimated cost to <strong>the</strong> District <strong>for</strong> <strong>the</strong> flow meters, including <strong>the</strong>ir installation, at 642<br />

withdrawal sites in <strong>the</strong> DPC WUCA is estimated to be $1.5 million as itemized in Table<br />

3.2. These withdrawal sites were identified as being in <strong>the</strong> DPC WUCA associated with<br />

ground water withdrawal permits where flow meters are not required under current rule.<br />

44324-000R4.docx<br />

Item<br />

Table 3.2<br />

<strong>Estimated</strong> Total One-Time Cost to Purchase,<br />

Install and Administer Flow Meters (a)<br />

One-Time Cost<br />

Purchase Flow meters $663,644<br />

Install Flow meters $818,906<br />

Withdrawal Site Reviews $64,200<br />

Total $1,546,750<br />

(a)<br />

This is <strong>the</strong> flow meter cost <strong>for</strong> existing permittees required to<br />

have flow meters under <strong>the</strong> DPC WUCA Rule but not under current<br />

rule and do not have flow meter. There are about 642 withdrawal<br />

points that would be supplied with a flow meter.<br />

The estimation <strong>of</strong> this $1.5 million cost is provided in Tables 3.3 and 3.4. The estimated<br />

cost to provide <strong>for</strong> <strong>the</strong> flow meters is provided in Table 3.3 and <strong>the</strong> estimated cost to in-<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 3-2<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

stall <strong>the</strong> flow meters is provided in Table 3.4. The data sources used to estimate <strong>the</strong>se<br />

costs are provided in <strong>the</strong> footnotes to <strong>the</strong>se tables. It is envisioned that two District request<br />

<strong>for</strong> proposals would be advertised – one to purchase <strong>of</strong> <strong>the</strong> flow meters and one to<br />

install <strong>the</strong> flow meters. 1 The actual cost will depend on <strong>the</strong> contractor responses to <strong>the</strong>se<br />

requests <strong>for</strong> proposals and <strong>the</strong> resulting contracts. The withdrawal site reviews itemized<br />

in Table 3.2 are assumed to be made by contractors at an estimated cost <strong>of</strong> $100 per<br />

withdrawal site times 642 withdrawal sites. The $100 cost per site is from <strong>the</strong> District and<br />

includes salary, employee benefits and travel.<br />

Pipe Diameter<br />

in Inches<br />

Table 3.3<br />

<strong>Estimated</strong> Cost to Purchase Flow Meters<br />

Number <strong>of</strong><br />

Withdrawal Sites (a)<br />

<strong>Estimated</strong> Flow Meter<br />

Cost Per Withdrawal<br />

Site (b)<br />

Cost<br />

2" through 6" 301 $971 $292,211<br />

8" 207 $1,042 $215,611<br />

10" 79 $1,111 $87,785<br />

12" 51 $1,177 $60,037<br />

16" to 24" 4 $2,000 $8,000<br />

Total 642 $663,644<br />

(a <strong>Estimated</strong> number <strong>of</strong> withdrawal sites required to comply under <strong>the</strong> DPC WUCA but not<br />

under current rule based on water use permit data provided by <strong>the</strong> District from <strong>the</strong> District's<br />

database in 2010. All <strong>of</strong> <strong>the</strong>se withdrawal points are small general permits. Of <strong>the</strong><br />

sites from 2" to 6" pipe diameter, 94% <strong>of</strong> <strong>the</strong>se sites are from 4" to 6" diameter.<br />

(b)<br />

Does not include <strong>the</strong> cost <strong>of</strong> installing <strong>the</strong> flow meter. <strong>Estimated</strong> cost per withdrawal site<br />

assumes one flow meter per withdrawal site. The cost was quoted by The Avanti Company<br />

on April 20, 2010 and reflects a strap-on saddle type propeller meter with standard<br />

1000 gallon totalizer and includes straightening vanes. The cost includes <strong>the</strong> price quote<br />

per flowmeter times 1.2 to reflect dealer markup. The actual cost will depend on <strong>the</strong> contractor<br />

responses to <strong>the</strong> District's Request <strong>for</strong> Proposals to purchase flow meters.<br />

44324-000R4.docx<br />

1 Alternatively, <strong>the</strong> District may implement a cost reimbursement program. The estimated costs are not expected<br />

to be significantly different than those reported in this SERC.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 3-3<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

Ef<strong>for</strong>t Required to<br />

Install (a)<br />

Table 3.4<br />

<strong>Estimated</strong> Cost to Install Flow Meters<br />

Number <strong>of</strong><br />

Withdrawal<br />

Sites (b)<br />

<strong>Estimated</strong><br />

Installation Cost<br />

Per Withdrawal<br />

Site (c )<br />

Total Cost<br />

Low Ef<strong>for</strong>t 321 $729 $234,048<br />

Moderate Ef<strong>for</strong>t 161 $1,562 $251,546<br />

High Ef<strong>for</strong>t 160 $2,083 $333,312<br />

Total 642 $818,906<br />

(a)<br />

(b)<br />

(c)<br />

Withdrawal sites were divided into those that will require a low level <strong>of</strong> ef<strong>for</strong>t to<br />

install; those that will require a moderate amount <strong>of</strong> ef<strong>for</strong>t to install and those<br />

that will require a high amount <strong>of</strong> ef<strong>for</strong>t to install. Withdrawal sites were divided<br />

up as follows: 50% Low Ef<strong>for</strong>t; 25% Moderate Ef<strong>for</strong>t; and 25% High Ef<strong>for</strong>t.<br />

<strong>Estimated</strong> number <strong>of</strong> withdrawal sites required to comply under <strong>the</strong> DPC WU-<br />

CA but not under current rule based on water use permit data provided by <strong>the</strong><br />

District from <strong>the</strong> District's database in 2010. All <strong>of</strong> <strong>the</strong>se withdrawal points are<br />

small general permits.<br />

The estimated cost <strong>of</strong> flow meter installation per withdrawal site (and per flow<br />

meter) is equal to 70% <strong>of</strong> <strong>the</strong> 8" flow meter cost ($1,042) <strong>for</strong> <strong>the</strong> Low Ef<strong>for</strong>t installation;<br />

150% <strong>of</strong> <strong>the</strong> 8" flow meter cost <strong>for</strong> <strong>the</strong> Moderate Ef<strong>for</strong>t installation<br />

and 200% <strong>of</strong> <strong>the</strong> 8" flow meter cost <strong>for</strong> <strong>the</strong> High Ef<strong>for</strong>t installation.<br />

Automatic Meter Reading Device Purchase and Installation. For existing and future<br />

permits with permitted quantities <strong>for</strong> frost / freeze protection and permits <strong>for</strong> uses that<br />

typically require frost / freeze protection, <strong>the</strong> District will provide and install automatic<br />

meter reading (AMR) devices on each flow meter that is not already so equipped. The<br />

District will also maintain, repair and replace <strong>the</strong> AMR devices. The District will include<br />

<strong>the</strong>se devices in <strong>the</strong> District’s data collection and reporting service subscription at no<br />

cost to <strong>the</strong> permittee.<br />

The proposed AMR requirements apply to <strong>the</strong> following water use permits.<br />

1. Permits with frost / freeze quantities to be withdrawn from groundwater within <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA; or,<br />

44324-000R4.docx<br />

2. Permits within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA <strong>for</strong> groundwater quantities to provide<br />

frost / freeze quantities from any combination <strong>of</strong> sources that if withdrawn from<br />

groundwater alone would have <strong>the</strong> potential to impact <strong>the</strong> Minimum Aquifer Level<br />

Protection Zone established <strong>for</strong> <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA; or,<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 3-4<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

3. Permits within <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA <strong>for</strong> groundwater quantities to provide<br />

supplemental irrigation <strong>for</strong> a use that typically requires frost / freeze protection<br />

and where such protection could be achieved through groundwater withdrawals<br />

but alternative protection methods are proposed.<br />

The District cost in 2010 dollars to purchase, install, replace, maintain and repair <strong>the</strong><br />

AMR devices at <strong>the</strong> 1,121 existing withdrawal sites required to have devices and to collect<br />

water flow and related data is estimated to be a $126,000 one-time cost and an annual<br />

cost <strong>of</strong> $1.35 million per year. The annual cost is expected to increase by about<br />

0.65 percent per year (less than 1%) as new permittees needing frost / freeze protection<br />

locate in <strong>the</strong> DPC WUCA. Thus, this annual cost is expected to increase by about<br />

$8,800 each year in 2010 dollars. At some point in <strong>the</strong> future, <strong>the</strong> annual costs should<br />

stabilize as <strong>the</strong> total number <strong>of</strong> withdrawal points reaches a maximum in <strong>the</strong> DPC WUCA<br />

area. These costs are itemized in Table 3.5.<br />

Table 3.5<br />

<strong>Estimated</strong> Cost to Purchase, Install, Replace, Maintain and Repair<br />

Automatic Meter Reading (AMR) Devices and Data Collection<br />

In 2010 Dollars (a)<br />

Item One-Time Cost Annual Cost (b)<br />

Purchase, Install and Replace AMR<br />

Devices $0 $558,922<br />

Maintain and Repair AMR Devices $0 $215,793<br />

Database Preparation and Data<br />

Collection Cost $126,000 $577,853<br />

Total Cost $126,000 $1,352,568<br />

(a) <strong>Estimated</strong> one-time and annual cost to purchase, install, replace, maintain and repair<br />

AMR devices and collect water withdrawal and related data from <strong>the</strong> AMR devices.<br />

44324-000R4.docx<br />

(b)<br />

The annual cost is expected to increase by 0.65 percent per year (less than 1%) as<br />

new permittees needing frost / freeze protection locate in <strong>the</strong> DPC WUCA. Thus, this<br />

cost is expected to increase about $8,800 per year. Based on <strong>the</strong> past 10 years, it is<br />

estimated that 3.47 new agricultural permits needing frost / freeze quantities will locate<br />

in <strong>the</strong> DPC WUCA each year. The average number <strong>of</strong> withdrawal points per permit in<br />

<strong>the</strong> DPC WUCA is 2.11. Thus, <strong>the</strong> total number <strong>of</strong> withdrawal sites in <strong>the</strong> DPC WUCA<br />

is estimated to increase by 7.33 new withdrawal sites per year (3.47 x 2.11). This annual<br />

number is 0.65% <strong>of</strong> <strong>the</strong> 1,121 existing withdrawal sites in <strong>the</strong> DPC WUCA. The<br />

costs are proportional to <strong>the</strong> number <strong>of</strong> withdrawal sites.<br />

The estimation <strong>of</strong> this AMR cost is provided in Tables 3.6 and 3.7. The estimated cost to<br />

purchase and install <strong>the</strong> AMR devices is provided in Table 3.6 and <strong>the</strong> estimated cost to<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 3-5<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

collect <strong>the</strong> water flow and related data is provided in Table 3.7. The data sources used to<br />

estimate <strong>the</strong>se costs are provided in <strong>the</strong> footnotes to <strong>the</strong>se tables. It is envisioned that<br />

one or more District requests <strong>for</strong> proposals to provide, install, maintain and repair <strong>the</strong><br />

AMR devices would be advertised. The actual cost will depend on <strong>the</strong> contractor responses<br />

to <strong>the</strong>se requests <strong>for</strong> proposals and <strong>the</strong> resulting contracts.<br />

Table 3.6<br />

<strong>Estimated</strong> Cost to Purchase and Install Automatic Meter Reading (AMR)<br />

Devices in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, 2010 Dollars<br />

Water Use Permit Type<br />

Purchase and Installation<br />

Cost (b)<br />

Number <strong>of</strong><br />

Withdrawal Sites (a)<br />

<strong>Estimated</strong> Cost per<br />

AMR Device<br />

Cost<br />

Individual 36 $3,850 $138,600<br />

General 408 $3,850 $1,570,800<br />

Small General 677 $3,850 $2,606,450<br />

Total Purchase and<br />

Installation Cost<br />

Annualized purchase,<br />

installation and replacement<br />

cost (c)<br />

Annual Maintenance and<br />

Repair (O&M) Cost (d)<br />

1,121 $4,315,850<br />

$558,922<br />

1,121 $193 $215,793<br />

(a)<br />

(b)<br />

(c)<br />

Based on <strong>the</strong> water use permit in<strong>for</strong>mation provided by <strong>the</strong> Southwest Florida Water Management District<br />

from its water use permit database in 2010. This table includes only existing and proposed withdrawals<br />

(no capped, dismantled or plugged wells) in DPC WUCA that have frost / freeze permitted<br />

quantities OR have uses that traditionally require frost / freeze protection.<br />

Cost includes AMR device purchase and installation; meter head change; and temperature and pressure<br />

sensors. Cost based on current costs paid by District <strong>for</strong> AMR devices with a 10% markup to reflect<br />

higher cost <strong>of</strong> retr<strong>of</strong>iting existing meters. From Ron Cohen, P.E., Agricultural and Irrigation Engineer,<br />

Southwest Florida Water Management District in September 2010.<br />

The total purchase and installation cost was amortized over <strong>the</strong> useful life <strong>of</strong> <strong>the</strong> AMR device which is<br />

about 10 years and using a 5% annual interest rate. The actual cost each year will depend on <strong>the</strong><br />

number <strong>of</strong> AMR devices installed or replaced each year.<br />

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(d)<br />

Annual maintenance and repair (O&M) cost consists <strong>of</strong> replacing <strong>the</strong> rechargeable battery once every<br />

five years; checking <strong>the</strong> AMR device one time per year to make sure it is working properly; and repairing<br />

or replacing any broken system components. Does not include <strong>the</strong> cost to replace <strong>the</strong> AMR device.<br />

This annual O&M cost per withdrawal site is estimated as 5% <strong>of</strong> <strong>the</strong> purchase and installation<br />

cost ($193 = $3,850 x 0.05).<br />

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3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

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Cost Item<br />

Annual <strong>Costs</strong><br />

Table 3.7<br />

<strong>Estimated</strong> Cost to Collect Water Withdrawal and Related Data from <strong>the</strong><br />

AMR Devices in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, 2010 Dollars<br />

Number <strong>of</strong><br />

Withdrawal<br />

Sites (a)<br />

1. Subscription Fee to Collect <strong>the</strong> Site Data via AMR Devices (b):<br />

<strong>Estimated</strong><br />

Cost Per Site<br />

Cost<br />

- Once per day <strong>for</strong> 7 months <strong>of</strong> <strong>the</strong> year 1,121 $70.00 $78,470<br />

- Hourly <strong>for</strong> 5 winter months <strong>of</strong> <strong>the</strong> year 1,121 $300.00 $336,300<br />

2. Cost <strong>for</strong> <strong>the</strong> District to switch each AMR<br />

device from daily to hourly and <strong>the</strong>n from<br />

hourly to daily (c)<br />

1,121 $38.86 $43,588<br />

3. District Data Processing Cost (d) 1,121 $51.64 $57,886<br />

4. Quality Control <strong>of</strong> Collected Data (e) Lump Sum $61,639<br />

Total Annual Data Collection Cost $577,853<br />

5. One-time Cost to Prepare Database<br />

<strong>for</strong> daily and hourly data (f)<br />

(a)<br />

(b)<br />

(c)<br />

(d)<br />

(e)<br />

(f)<br />

$126,000<br />

Based on <strong>the</strong> water use permit in<strong>for</strong>mation provided by <strong>the</strong> Southwest Florida Water Management<br />

District from its water use permit database in 2010.<br />

<strong>Estimated</strong> cost per withdrawal site is <strong>the</strong> estimated monthly subscription cost per withdrawal site per<br />

month times <strong>the</strong> number <strong>of</strong> months per year. This cost estimate assumes that <strong>the</strong> data will be collected<br />

once per day during <strong>the</strong> 7 month non-winter period (April through November) at a cost <strong>of</strong> $10<br />

per withdrawal site per month. During <strong>the</strong> winter months <strong>of</strong> December through March, <strong>the</strong> data will be<br />

collected hourly (24 times per day) at an estimated subscription cost <strong>of</strong> $60 per withdrawal site per<br />

month. Includes cellular transmission <strong>of</strong> withdrawal and temperature data plus alerts. Each day <strong>the</strong><br />

Contractor collects <strong>the</strong> data and downloads it to <strong>the</strong> District's ftp site. The monthly subscription costs<br />

are estimates provided by <strong>the</strong> District's contractor <strong>of</strong> <strong>the</strong> District's AMR pilot project. Actual cost will<br />

be based on contractor responses to <strong>the</strong> District's Request <strong>for</strong> Proposal process.<br />

<strong>Estimated</strong> cost per site is based on District staff switching each AMR device to transmit daily or<br />

hourly two times per year. Cost is one-half hour per site times two trips to switch transmittal frequency<br />

times <strong>the</strong> hourly salary and benefits <strong>of</strong> a Grade 16 Senior Field Technician ($38.86 per hour).<br />

<strong>Estimated</strong> cost per withdrawal site is based on District staff seasonally reprogramming <strong>the</strong> database<br />

to accept hourly or daily data. Cost is equal to 2 hours per withdrawal site times <strong>the</strong> hourly salary and<br />

benefits <strong>of</strong> a Grade 12 Data Processor ($22.84 per hour).<br />

One full time District staff person at pay grade 15 at annual salary <strong>of</strong> $46,068 times 1.338 to account<br />

<strong>for</strong> salary, benefits and overhead. In<strong>for</strong>mation from District.<br />

<strong>Estimated</strong> cost provided by <strong>the</strong> District.<br />

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3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

The District cost associated with providing quality control <strong>of</strong> <strong>the</strong> data collected through<br />

<strong>the</strong> AMR subscription service is provided in item 4 in Table 3.7. This cost is in anticipation<br />

that additional staff will be required to follow up on flagged (perceived incorrect) data.<br />

Although AMR reduces human reporting errors, <strong>the</strong>re will be more permits reporting<br />

withdrawals and <strong>the</strong> frequency and number <strong>of</strong> pieces <strong>of</strong> data reported will significantly<br />

increase. For withdrawal data reporting alone, <strong>the</strong> number <strong>of</strong> pieces <strong>of</strong> data collected<br />

from this area per year could increase from approximately 5,748 to 4,271, 010. 2 For<br />

example, if <strong>the</strong> error rate is 1-in-100 <strong>for</strong> permittee-reported data and <strong>the</strong> error rate <strong>for</strong><br />

AMR-reported data is 1-in-1,000, <strong>the</strong>n <strong>the</strong> number <strong>of</strong> data pieces prone to error could<br />

increase from 57 to 4,271. While this order <strong>of</strong> magnitude increase is unlikely as many<br />

errors would be repeats <strong>of</strong> <strong>the</strong> same error, <strong>the</strong>re are many more reporting sites subject<br />

to additional equipment and o<strong>the</strong>r failures. Not only will <strong>the</strong>re be increased withdrawal<br />

reporting, <strong>the</strong>re will also be reporting <strong>of</strong> temperatures and on/<strong>of</strong>f times. As <strong>the</strong>re is little<br />

District experience with daily and hourly withdrawal, temperature and on-<strong>of</strong>f AMR reporting,<br />

additional compliance monitoring costs cannot be precisely estimated. However,<br />

<strong>the</strong> data is highly suggestive <strong>of</strong> <strong>the</strong> need <strong>for</strong> at least 1.0 full-time-equivalent District staff<br />

and this is reflected in item 4 in Table 3.7.<br />

Allocation <strong>of</strong> Permittee Responsibility <strong>for</strong> Well Complaints. The District has designed<br />

a new process <strong>for</strong> determining which permit holder is responsible <strong>for</strong> dry well<br />

complaints and assigning <strong>the</strong> responsibility to investigate and resolve <strong>the</strong> complaint. This<br />

process will result in a more equitable approach to assign each permittee a relative responsibility<br />

based on <strong>the</strong> volume <strong>of</strong> groundwater <strong>the</strong>y are permitted to use <strong>for</strong> crop protection<br />

and crop establishment. Revisions to Section 7.4 <strong>of</strong> <strong>the</strong> BOR describe <strong>the</strong> method<br />

to allocate permittee responsibility <strong>for</strong> well complaints by determining, to <strong>the</strong> extent<br />

possible, <strong>the</strong> actual contribution <strong>of</strong> a permittee’s withdrawal to a well complaint and methods<br />

<strong>for</strong> allocating well complaints to individual permittees.<br />

Annually, <strong>the</strong> District will update <strong>the</strong> allocation model designed to facilitate <strong>the</strong> process.<br />

As a large part <strong>of</strong> this ef<strong>for</strong>t, <strong>the</strong> District will conduct groundwater modeling simulations<br />

to determine <strong>the</strong> Floridian aquifer drawdown resulting from each permitee’s permitted<br />

frost/freeze groundwater withdrawals (<strong>for</strong> any crop) and permitted crop establishment<br />

groundwater withdrawals (<strong>for</strong> strawberry production). Additionally, District staff will determine<br />

allocation ratios, based on each permittee’s percent <strong>of</strong> <strong>the</strong> total frost/freeze or<br />

crop establishment quantity permitted within <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> WUCA, and input this<br />

in<strong>for</strong>mation into <strong>the</strong> model. The estimated annual cost to implement and maintain <strong>the</strong><br />

model <strong>for</strong> <strong>the</strong> allocation <strong>of</strong> dry well complaints in <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> WUCA is $4,445.<br />

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2 Current number <strong>of</strong> data pieces equals (1121 – 642) withdrawal points times 12 meter readings per year =<br />

5,748. Proposed equals (7 mos. x 30 days x 1,121 withdrawal points) + (5 mos. x 30 days x 24 hrs. x 1,121<br />

withdrawal points) = 4,271,010.<br />

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3.0 COST TO THE DISTRICT AND ANY OTHER STATE AND LOCAL GOVERNMENT JANUARY 2011<br />

Groundwater modeling simulations constitute <strong>the</strong> bulk <strong>of</strong> <strong>the</strong> estimated annual cost and<br />

represent 4.10 percent <strong>of</strong> a full time equivalent pr<strong>of</strong>essional geologist position.<br />

In <strong>the</strong> event that a dry well complaint is received, <strong>the</strong> District will incur <strong>the</strong> costs associated<br />

with administering <strong>the</strong> investigation and resolution process by <strong>the</strong> responsible<br />

permittee. Associated costs are likely to include <strong>the</strong> costs to determine <strong>the</strong> location <strong>of</strong><br />

<strong>the</strong> impacted well, assigning responsibility to <strong>the</strong> permittee, noticing costs, and <strong>the</strong> evaluation<br />

<strong>of</strong> mitigation reports to determine if <strong>the</strong> permittee has fully mitigated <strong>the</strong> dry well<br />

complaint. The cost per dry well complaint is estimated to be $337 and is anticipated to<br />

be less than what was incurred from each well complaint received during <strong>the</strong> 2010 11-<br />

day freeze event.<br />

3.2 Cost to Any O<strong>the</strong>r State and Local Government Entities <strong>of</strong><br />

Implementing and En<strong>for</strong>cing <strong>the</strong> Proposed Rules<br />

State and local government entities, as water use permit applicants or permitees, may<br />

incur costs associated with complying with <strong>the</strong> provisions <strong>of</strong> <strong>the</strong> proposed rule, but will<br />

not incur costs to implement or en<strong>for</strong>ce <strong>the</strong> proposed rule. <strong>Costs</strong> to state and local government<br />

entities as water use permittees and applicants are addressed as transaction<br />

costs in Chapter 4.0 <strong>of</strong> this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

3.3 Anticipated Effect on State or Local Revenues<br />

The proposed rule is not expected to have any significant effect on State or local government<br />

revenues.<br />

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Chapter 4.0<br />

Transactional <strong>Costs</strong><br />

This chapter presents <strong>the</strong> estimated transactional costs to <strong>the</strong> individuals and entities<br />

required to comply with <strong>the</strong> proposed DPC WUCA Rule. The actual transactional costs<br />

to each individual water use permit applicant and permittee will depend on <strong>the</strong> following<br />

factors.<br />

●<br />

●<br />

●<br />

●<br />

Whe<strong>the</strong>r <strong>the</strong> water will be withdrawn <strong>for</strong> a use that typically needs frost / freeze<br />

protection;<br />

Whe<strong>the</strong>r <strong>the</strong> average daily permitted water quantity assigned to <strong>the</strong> permit or ap-<br />

plication request is at least 100,000 gpd;<br />

Whe<strong>the</strong>r or not <strong>the</strong> permit application is <strong>for</strong> groundwater withdrawals inside or<br />

outside <strong>the</strong> DPC WUCA; and,<br />

Whe<strong>the</strong>r or not <strong>the</strong> permitted withdrawal is located in <strong>the</strong> Nor<strong>the</strong>rn Tampa Bay<br />

WUCA or <strong>the</strong> Sou<strong>the</strong>rn WUCA.<br />

For <strong>the</strong> purposes <strong>of</strong> <strong>the</strong> DPC WUCA rule, <strong>the</strong> District considers strawberries, blueber-<br />

ries, nurseries (container and some field), citrus (ridge and flatwood) and tropical fish<br />

farms as those activities that typically require frost / freeze protection.<br />

This chapter 4.0 Transactional <strong>Costs</strong> describes how <strong>the</strong> rule will impact water use permittees<br />

and applicants and provides estimated unit costs and estimated ranges <strong>of</strong> total<br />

costs to <strong>the</strong> permittee or applicant associated with each provision <strong>of</strong> <strong>the</strong> proposed rule.<br />

Applicants and permittees are encouraged to use <strong>the</strong>ir own situation and <strong>the</strong> in<strong>for</strong>mation<br />

and unit costs provided in this Chapter to obtain an understanding <strong>of</strong> how <strong>the</strong> proposed<br />

rule will impact <strong>the</strong>ir own operations. The costs <strong>of</strong> alternative frost / freeze protection methods<br />

o<strong>the</strong>r than water and <strong>the</strong> costs <strong>of</strong> alternative water sources will be fully or partially<br />

<strong>of</strong>fset by <strong>the</strong> avoided costs associated with ground water withdrawals. In addition, cer-<br />

tain components <strong>of</strong> frost / freezee protection methods o<strong>the</strong>r than <strong>the</strong> use <strong>of</strong> ground water<br />

may be eligible <strong>for</strong> District funding which is described in chapter 7.0 <strong>of</strong> this SERC.<br />

44324-000R4.docx<br />

In preparing this SERC, care was taken to identify direct and indirect costs.<br />

Indirect<br />

costs that were identifiedd are <strong>the</strong> overhead costs and <strong>the</strong> cost to obtain o<strong>the</strong>r permits.<br />

<strong>Costs</strong> associated with labor activities such as completing District <strong>for</strong>ms were based on<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE 4-1<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

an hourly labor cost where salary, benefits and overhead costs are included. Activities<br />

conducted in compliance with <strong>the</strong> proposed rule that would require o<strong>the</strong>r types <strong>of</strong> permits<br />

from <strong>the</strong> District or permits from o<strong>the</strong>r agencies are associated with <strong>the</strong> construction <strong>of</strong><br />

tailwater recovery ponds as described in this chapter.<br />

4.1 Summary <strong>of</strong> Transactional <strong>Costs</strong><br />

The estimated transactional costs associated with <strong>the</strong> proposed DPC WUCA Rule are<br />

summarized as follows. Only those individuals and entities who meet specific criteria as<br />

described in Chapters 2 and 4 <strong>of</strong> this SERC would be expected to incur each cost. In<br />

addition, some <strong>of</strong> <strong>the</strong> costs would only be incurred at <strong>the</strong> discretion <strong>of</strong> <strong>the</strong> water use<br />

permittee or applicant.<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

Cost to complete new supplemental <strong>for</strong>ms;<br />

Cost to purchase, install and maintain flow meters;<br />

Increased water use permit fee and <strong>the</strong> cost <strong>of</strong> more frequent permit renewals<br />

<strong>for</strong> Small General permittees with uses that typically require frost / freeze protection<br />

Cost to manually report to <strong>the</strong> District <strong>the</strong> amount <strong>of</strong> water withdrawn <strong>for</strong> those<br />

permittees who are not required to have automatic meter reading devices;<br />

Cost to prepare feasibility analysis <strong>of</strong> frost/ freeze protection methods o<strong>the</strong>r than<br />

ground water;<br />

Cost to use frost /freeze protection methods o<strong>the</strong>r than water; and,<br />

Cost <strong>of</strong> Alternative Water Sources.<br />

Each <strong>of</strong> <strong>the</strong>se costs is presented and discussed in turn.<br />

4.2 Submittal <strong>of</strong> Forms<br />

Applicants <strong>for</strong> permitted ground water quantities in <strong>the</strong> DPC WUCA will be required to<br />

complete at least one new <strong>for</strong>m and no more than three new <strong>for</strong>ms as follows.<br />

44324-000R4.docx<br />

During <strong>the</strong> water use permit application process, applicants in <strong>the</strong> DPC WUCA will need<br />

to submit <strong>the</strong> Supplemental Form similar to that used <strong>for</strong> <strong>the</strong> Sou<strong>the</strong>rn Water Use Caution<br />

Area. This is current rule <strong>for</strong> applicants requesting permits in <strong>the</strong> SWUCA portion <strong>of</strong><br />

<strong>the</strong> DPC WUCA. For all o<strong>the</strong>r applicants in <strong>the</strong> DPC WUCA, <strong>the</strong> estimated labor cost<br />

including salary, benefits and overhead to complete this supplemental <strong>for</strong>m ranges from<br />

$700 to $2,200 depending on <strong>the</strong> complexity <strong>of</strong> <strong>the</strong> water use permit application. The<br />

cost was based on 8 to 24 hours <strong>of</strong> time needed to complete <strong>the</strong> <strong>for</strong>m and an hourly salary,<br />

benefits and overhead cost <strong>of</strong> $88. The calculation <strong>of</strong> this hourly cost is provided in<br />

Table 4.16 located at <strong>the</strong> end <strong>of</strong> this Chapter 4.0. The preparation time and expense <strong>for</strong><br />

existing permittees that are not requesting additional frost / freeze water quantities will<br />

likely be significantly lower.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

If a net benefit is to be considered by <strong>the</strong> District, <strong>the</strong> applicant will need to complete <strong>the</strong><br />

Net Benefit Supplemental Form similar to that used in <strong>the</strong> Sou<strong>the</strong>rn Water Use Caution<br />

Area. The estimated labor cost including salary, benefits and overhead to complete this<br />

net benefit supplemental <strong>for</strong>m ranges from $700 to $2,200 depending on <strong>the</strong> complexity<br />

<strong>of</strong> <strong>the</strong> water use permit application. The calculation is <strong>the</strong> same as that provided in <strong>the</strong><br />

previous paragraph.<br />

If a water replacement credit is to be considered by <strong>the</strong> District, <strong>the</strong> applicant will need to<br />

complete <strong>the</strong> Water Replacement Credit Application – Sou<strong>the</strong>rn Water Use Caution Area<br />

and <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> Water Use Caution Area Form, incorporated by reference in Subsection<br />

40D-2.101(6), F.A.C. The estimated labor cost including salary, benefits and<br />

overhead to complete this water replacement credit application <strong>for</strong>m ranges from $700 to<br />

$2,200 depending on <strong>the</strong> complexity <strong>of</strong> <strong>the</strong> water use permit application. The calculation<br />

is <strong>the</strong> same as that provided in <strong>the</strong> previous paragraph.<br />

4.3 Responsibility <strong>for</strong> Sinkholes and Subsidence<br />

Under Standard Permit Conditions, <strong>the</strong> requirement that a permittee shall mitigate “sinkholes<br />

or subsidence caused by reduction in water levels” will be deleted under Chapter<br />

40D-2.381 (3)(m)(2)). Under existing rule, permittees are required to mitigate adverse<br />

impacts to <strong>of</strong>fsite land uses and <strong>the</strong> rule includes a list <strong>of</strong> occurrences that are considered<br />

adverse impacts, including sinkholes or subsidence caused by reductions in water<br />

levels. The proposed rule changes <strong>the</strong> list from an all inclusive list to be a list <strong>of</strong> examples<br />

<strong>of</strong> adverse impacts. This list does not include sinkholes or subsidence as examples<br />

but does not eliminate responsibility <strong>for</strong> such occurrences where responsibility can be<br />

determined.<br />

44324-000R4.docx<br />

4.4 Frost / Freeze Protection Permitted Quantities<br />

Maximum daily allocations <strong>for</strong> frost freeze protection will be allocated based on a 21<br />

hour event. Under current rule, <strong>the</strong> allocations are based on a 24 hour event. This<br />

change will reduce <strong>the</strong> maximum daily permitted withdrawal. If a frost / freeze event occurs<br />

continuously over a 22 to 24 hour period, <strong>the</strong>n <strong>the</strong> grower will need to increase <strong>the</strong><br />

efficiency <strong>of</strong> <strong>the</strong> water applied to <strong>the</strong> crop each hour and/or use an alternative water<br />

source o<strong>the</strong>r than ground water and/or use a frost / freeze protection method o<strong>the</strong>r than<br />

ground water to make up <strong>the</strong> difference. In order to protect <strong>the</strong> plant from freezing temperatures,<br />

<strong>the</strong> grower must keep water flowing to <strong>the</strong> plants throughout <strong>the</strong> duration <strong>of</strong><br />

<strong>the</strong> frost / freeze event. 1 The temperature must return to above <strong>the</strong> critical temperature<br />

be<strong>for</strong>e <strong>the</strong> water can be turned <strong>of</strong>f.<br />

1 From Ron Cohen, P.E., Agricultural and Irrigation Engineer, Southwest Florida Water Management<br />

District via telephone on October 13, 2010.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

The costs <strong>of</strong> alternative frost / freeze protection methods and alternative water sources<br />

are provided in Chapters 4.6 and 4.7, respectively. According to <strong>the</strong> District 2 , any frost /<br />

freeze event that lasts longer than 21 hours per day is extremely rare in <strong>the</strong> DPC WUCA<br />

area.<br />

4.5 Metering Requirements<br />

Metering <strong>of</strong> water withdrawals at all permitted water withdrawal points and <strong>the</strong> use <strong>of</strong> automated<br />

meter reading (AMR) devices will be required <strong>of</strong> permittees in <strong>the</strong> DPC WUCA<br />

with permitted ground water quantities that use or could use water <strong>for</strong> frost / freeze protection.<br />

For all o<strong>the</strong>r individuals and entities with a water use permit <strong>for</strong> at least 100,000<br />

gpd annual average daily permitted ground water quantities in <strong>the</strong> DPC WUCA, metering<br />

<strong>of</strong> all water withdrawals, but not <strong>the</strong> use <strong>of</strong> AMR devices, will be required under <strong>the</strong> proposed<br />

rule.<br />

Automatic Meter Reading devices are not required under current rule. However, under<br />

current rule, if <strong>the</strong> permittee or applicant is located in a WUCA (such as <strong>the</strong> SWUCA or<br />

Nor<strong>the</strong>rn Tampa Bay WUCA) <strong>the</strong>n metering is required when <strong>the</strong> permitted quantity is<br />

100,000 gpd or greater regardless <strong>of</strong> <strong>the</strong> quantities permitted <strong>for</strong> frost /freeze protection.<br />

If not located in a WUCA, <strong>the</strong>n metering is only required when <strong>the</strong> permitted quantity is<br />

500,000 gpd or greater regardless <strong>of</strong> <strong>the</strong> quantities permitted <strong>for</strong> frost /freeze protection.<br />

In addition, all Public Supply permits <strong>for</strong> annual average daily quantities greater than<br />

100,000 gpd in all areas <strong>of</strong> <strong>the</strong> District are required to be metered.<br />

Flow Meter Cost. The proposed rule describes District funding <strong>of</strong> some metering requirements.<br />

For permits existing as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule and <strong>for</strong> permits resulting<br />

from applications submitted prior to <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule, <strong>the</strong> District will<br />

provide and install <strong>the</strong> flow meters. These flow meters will be installed on withdrawal<br />

points, inflow lines, catchment facility, tailwater recovery or rainfall capture pond and storage<br />

facility in existence prior to <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule that are not equipped with<br />

and not required by District rule as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule to have a flow meter.<br />

Persons and entities that submit a water use permit application on or after <strong>the</strong> effective<br />

date <strong>of</strong> <strong>the</strong> rule shall provide and install flow meters at <strong>the</strong>ir expense. All permittees are<br />

responsible <strong>for</strong> <strong>the</strong> cost <strong>of</strong> operation, maintenance and replacement <strong>of</strong> all flow meters.<br />

44324-000R4.docx<br />

The cost to purchase a flow meter increases with <strong>the</strong> size <strong>of</strong> <strong>the</strong> meter. The estimated<br />

cost to purchase a flow meter is provided in Table 4.1. For a strap-on saddle type pro-<br />

2 From Ron Cohen, P.E., Agricultural and Irrigation Engineer, Southwest Florida Water Management<br />

District via telephone on October 13, 2010.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

peller meter with a standard 1,000 gallon totalizer and straightening valves, <strong>the</strong> price<br />

starts at about $970 <strong>for</strong> a 4 inch to 6 inch meter and increases to a maximum <strong>of</strong> $2,000<br />

<strong>for</strong> a 16 inch to 24 inch meter.<br />

Pipe Diameter in Inches<br />

Table 4.1<br />

<strong>Estimated</strong> Cost to Purchase Water Flow Meters<br />

<strong>Estimated</strong> Purchase Cost<br />

per Withdrawal Site (a)<br />

4” or 6" $971<br />

8" $1,042<br />

10" $1,111<br />

12" $1,177<br />

16" to 24" $2,000<br />

(a)<br />

Does not include <strong>the</strong> cost <strong>of</strong> installing <strong>the</strong> flow meter. <strong>Estimated</strong> cost per withdrawal<br />

site assumes one flow meter per withdrawal site. The cost was quoted by The<br />

Avanti Company on April 20, 2010 and reflects a strap-on saddle type propeller<br />

meter with standard 1000 gallon totalizer and includes straightening vanes. The<br />

cost includes <strong>the</strong> price quote per flow meter times 1.2 to reflect dealer markup.<br />

The cost to install <strong>the</strong> meter will depend on <strong>the</strong> degree <strong>of</strong> ef<strong>for</strong>t needed to retr<strong>of</strong>it it into<br />

<strong>the</strong> existing pumping and irrigation system. The estimated installation costs per withdrawal<br />

site <strong>for</strong> three levels <strong>of</strong> ef<strong>for</strong>t, low, moderate, and high, are provided in Table 4.2.<br />

The cost ranges from about $730 per meter to about $2,100 per meter.<br />

Ef<strong>for</strong>t Required to Install<br />

Table 4.2<br />

<strong>Estimated</strong> Cost to Install Water Flow Meters<br />

<strong>Estimated</strong> Installation Cost<br />

per Withdrawal Site (a)<br />

Low Ef<strong>for</strong>t $729<br />

Moderate Ef<strong>for</strong>t $1,562<br />

High Ef<strong>for</strong>t $2,084<br />

(a)<br />

The estimated cost <strong>of</strong> flow meter installation per withdrawal site (and per flow<br />

meter) is equal to 70% <strong>of</strong> <strong>the</strong> 8" flow meter cost ($1,042) <strong>for</strong> <strong>the</strong> Low Ef<strong>for</strong>t installation;<br />

150% <strong>of</strong> <strong>the</strong> 8" flow meter cost <strong>for</strong> <strong>the</strong> Moderate Ef<strong>for</strong>t installation and<br />

200% <strong>of</strong> <strong>the</strong> 8" flow meter cost <strong>for</strong> <strong>the</strong> High Ef<strong>for</strong>t installation.<br />

44324-000R4.docx<br />

The flow meter cost to a permittee who requests a water use permit in <strong>the</strong> DPC WUCA<br />

on or after <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule will be based on <strong>the</strong> number <strong>of</strong> withdrawal points<br />

on <strong>the</strong> permit, <strong>the</strong> size <strong>of</strong> <strong>the</strong> meters needed and <strong>the</strong> level <strong>of</strong> ef<strong>for</strong>t needed to install <strong>the</strong><br />

meters. The average number <strong>of</strong> withdrawal points per permit in <strong>the</strong> DPC WUCA is 2.11.<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

The only maintenance requirement <strong>of</strong> a flow meter is to have it calibrated every five<br />

years to make sure it is obtaining accurate measurements <strong>of</strong> water flow. The cost is<br />

about $200 per calibration. The estimated useful life <strong>of</strong> a water flow meter is 10 to 15<br />

years. The annualized cost, which includes replacement cost <strong>of</strong> <strong>the</strong> flow meter, is provided<br />

in Table 4.3.<br />

For permittees inside <strong>the</strong> DPC WUCA and those outside <strong>the</strong> NTB WUCA and <strong>the</strong> SWU-<br />

CA with at least 100,000 gpd permitted quantity and no frost / freeze protection quantities<br />

will be required to meter <strong>the</strong>ir water withdrawals and report <strong>the</strong> amounts <strong>of</strong> <strong>the</strong>se<br />

withdrawals to <strong>the</strong> District each month. The estimated annual cost is $1,056. This cost<br />

was estimated as 12 hours per year times <strong>the</strong> median hourly salary, benefits and overhead<br />

cost <strong>of</strong> $88 per hour associated with <strong>the</strong> types <strong>of</strong> water use permittees that would<br />

be required to comply.<br />

Automatic Meter Reading Cost. Because <strong>the</strong> District will purchase, install, replace,<br />

maintain and repair <strong>the</strong> AMR devices required under <strong>the</strong> proposed rule, <strong>the</strong> permittee<br />

will not incur any significant cost associated with <strong>the</strong> AMR devices.<br />

Total Metering Cost Per Permit and Per Acre. An example <strong>of</strong> <strong>the</strong> estimated cost to<br />

purchase, install and maintain a water flow meter is summarized in Table 4.3. The cost<br />

to purchase and install an 8 inch water flow meter is estimated to be $2,604. Using a<br />

useful life <strong>of</strong> 12 years <strong>for</strong> <strong>the</strong> meter and an annual interest rate <strong>of</strong> 5 percent, <strong>the</strong> total annualized<br />

cost is $294 per meter, or about $300 per year. The annual operation and<br />

maintenance <strong>of</strong> <strong>the</strong> meter is estimated to be $46 dollars per meter. Thus, <strong>the</strong> total annualized<br />

purchase, installation and O&M cost is estimated to be $340 per withdrawal site.<br />

The estimated total annualized costs per acre <strong>for</strong> three farm sizes, 10 acres, 25 acres<br />

and 100 acres, are also provided in <strong>the</strong> table. The number <strong>of</strong> withdrawal points is assumed<br />

to be 2 <strong>for</strong> a 10-acre farm, including standby wells, 3 <strong>for</strong> a 25-acre farm, and 5 <strong>for</strong><br />

a 100-acre farm. These annualized costs include <strong>the</strong> replacement cost <strong>of</strong> <strong>the</strong> flow meter<br />

and <strong>the</strong> O&M cost. The annual metering cost per acre ranges from $20 to $68. For<br />

permittees and applicants that exist as <strong>of</strong> <strong>the</strong> effective date <strong>of</strong> <strong>the</strong> rule, <strong>the</strong> metering cost<br />

is only <strong>the</strong> O&M cost <strong>of</strong> $46 per withdrawal point per year until <strong>the</strong> original meter installed<br />

by <strong>the</strong> District needs to be replaced after about 12 years. At that point, <strong>the</strong> permittee<br />

will be responsible <strong>for</strong> replacing <strong>the</strong> meter. Some or all <strong>of</strong> this cost will be <strong>of</strong>fset<br />

by <strong>the</strong> permittee not having to manually collect and submit monthly withdrawal data and<br />

withdrawal data <strong>for</strong> frost / freeze protection as is required under current rule.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-6<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.3<br />

<strong>Estimated</strong> Cost to Purchase, Install and Maintain a Water Flow Meter<br />

Purchase and Installation Cost Per Withdrawal Point<br />

Cost<br />

Useful Life<br />

in Years<br />

Annualized<br />

Cost (a)<br />

8 inch flow meter with moderate ef<strong>for</strong>t to install $2,604 12 $294<br />

Annual Operation and Maintenance Cost Per Withdrawal Point<br />

Water Flow Meter Calibration 200 5 $46<br />

Total Annualized Purchase, Installation and O&M Cost per Permit<br />

One Withdrawal Point $340<br />

Average <strong>of</strong> 2.11 Withdrawal Points Per Existing Permittee $717<br />

Total Annualized Purchase, Installation and O&M Cost Per Farmed Acre<br />

(a)<br />

Cost per Acre <strong>for</strong> a 10 acre farm with 2 withdrawal points $68<br />

Cost per Acre <strong>for</strong> a 25 acre farm with 3 withdrawal points $41<br />

Cost per Acre <strong>for</strong> a 100 acre farm with 5 withdrawal points $20<br />

Annualized cost is <strong>the</strong> total cost amortized over <strong>the</strong> useful life <strong>of</strong> <strong>the</strong> item at 5% interest rate per year.<br />

Permit Reclassification. Because <strong>the</strong> proposed rule requires permittees with uses requiring<br />

frost / freeze protection to meter all withdrawal quantities, <strong>the</strong> permit classification<br />

<strong>for</strong> permittees that have a Small General water use permit will change to a General permit.<br />

Small General permits typically qualify <strong>for</strong> a 20 year permit under current rule whereas<br />

General permits can be issued <strong>for</strong> 20 years only under certain conditions.<br />

Under <strong>the</strong> proposed rule, <strong>the</strong> existing Small General permittees whose water use typically<br />

requires frost / freeze protection will be required to become General permits because<br />

<strong>the</strong>ir water withdrawals will be metered. These permittees will still complete <strong>the</strong> Small<br />

General Water Use Permit Application but <strong>the</strong>ir permits will be issued as General Permits.<br />

As such, <strong>the</strong>y will not be required to implement certain activities required <strong>of</strong> General<br />

Permits, such as submitting a water conservation plan. However, <strong>the</strong>y will be required<br />

to pay <strong>the</strong> higher General permit renewal fee. In addition, <strong>the</strong>ir permit durations<br />

would extend 10 years, not <strong>the</strong> current 20 years, so <strong>the</strong>y would need to renew <strong>the</strong>ir permits<br />

more frequently.<br />

44324-000R4.docx<br />

The permit fee <strong>for</strong> a renewing a Small General permit no greater than 20 years in duration<br />

is $70. The permit fee <strong>for</strong> renewing a General permit no greater than 10 years in<br />

duration is $185. There<strong>for</strong>e, <strong>the</strong> additional permit fee is $115 at permit renewal. To account<br />

<strong>for</strong> <strong>the</strong> fact that <strong>the</strong> permit would need to be renewed every 10 years instead <strong>of</strong><br />

every 20 years, <strong>the</strong> ten year net present value <strong>of</strong> this change in fees and timing <strong>of</strong> fee<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-7<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

payments was calculated at an annual interest rate <strong>of</strong> five percent. The net present value<br />

<strong>of</strong> <strong>the</strong> increased permit fee and reduced permit duration is $223.10 over ten years.<br />

In addition to paying <strong>the</strong> permit fee, <strong>the</strong> permittee will need to complete <strong>the</strong> Small General<br />

Permit application every 10 years instead <strong>of</strong> every 20 years. The labor cost to complete<br />

<strong>the</strong> application is estimated to be $440 which is five hours times an $88 per hour<br />

labor cost that includes salary, benefits and overhead. The net present value <strong>of</strong> this increase<br />

in hours needed to complete <strong>the</strong> Small General permit application <strong>for</strong>m every 10<br />

years instead <strong>of</strong> every 20 years is $270 over ten years at 5 percent annual interest.<br />

Thus, <strong>the</strong> total net present value <strong>of</strong> <strong>the</strong> fee increase and <strong>the</strong> additional time needed to<br />

complete <strong>the</strong> application is estimated to be $493 over ten years.<br />

New applicants <strong>for</strong> ground water in <strong>the</strong> DPC WUCA <strong>for</strong> uses that typically require frost /<br />

freeze protection that would have been issued Small General permits under current rule<br />

will, instead, be issued General permits under <strong>the</strong> proposed rule. These applicants will<br />

still need to complete <strong>the</strong> Small General Water Use Permit Application, as under current<br />

rule, but <strong>the</strong>ir permits would be issued as General Permits. As such, <strong>the</strong>y will not be required<br />

to implement certain activities required <strong>of</strong> General Permits, such as submitting a<br />

water conservation plan. However, <strong>the</strong>y will be required to pay <strong>the</strong> higher new General<br />

permit fee. The permit fee <strong>for</strong> a new Small General permit no greater than 20 years in<br />

duration is $100. The permit fee <strong>for</strong> a new General permit no greater than 10 years in<br />

duration is $250. Thus, <strong>the</strong> additional fee at permit application will be $150 higher under<br />

<strong>the</strong> proposed rule.<br />

4.6 Frost / Freeze Protection Methods O<strong>the</strong>r Than Irrigation Water<br />

Under <strong>the</strong> proposed rule, certain water use permit applicants will be required to investigate<br />

<strong>the</strong> technical, economic and environmental feasibility <strong>of</strong> using alternatives to ground<br />

water <strong>for</strong> frost/freeze protection. This feasibility analysis will be required <strong>of</strong> all water use<br />

permit applicants with at least 100,000 gpd annual average daily water quantity <strong>for</strong> an<br />

activity that typically uses frost / freeze protection and who have or propose to have a<br />

ground water withdrawal with <strong>the</strong> potential to impact <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone. Use <strong>of</strong> alternatives to groundwater <strong>for</strong> frost/freeze protection shall be required<br />

where technically, economically, and environmentally feasible.<br />

44324-000R4.docx<br />

The potential transactional costs associated with this proposed rule revision is <strong>the</strong> cost<br />

to prepare <strong>the</strong> feasibility study and <strong>the</strong> cost to implement any alternative measures that<br />

are found to be technically, economically, and environmentally feasible.<br />

<strong>Estimated</strong> Cost to Prepare <strong>the</strong> Feasibility Analysis. The cost to <strong>the</strong> applicant to prepare<br />

a feasibility analysis will primarily depend on <strong>the</strong> mix and acreage <strong>of</strong> crop types<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-8<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

grown on <strong>the</strong> farm and <strong>the</strong> size <strong>of</strong> <strong>the</strong> farm. Using an average preparation cost per hour<br />

<strong>of</strong> $108 and an estimated 40 hours <strong>of</strong> preparation time, <strong>the</strong> one-time cost to prepare a<br />

feasibility analysis is estimated to be $4,320. This cost estimate would also be representative<br />

<strong>for</strong> aquaculture operations such as tropical fish farms.<br />

The estimated hourly labor cost is <strong>the</strong> average opportunity cost <strong>of</strong> time per hour expended<br />

by a consulting engineering firm or pr<strong>of</strong>essional with expertise in evaluating alternative<br />

frost / freeze methods. Alternatively, if <strong>the</strong> farm owner or manager has <strong>the</strong> time<br />

to prepare this study, <strong>the</strong> cost would be <strong>the</strong> hourly rate paid to this person or persons<br />

plus <strong>the</strong> cost <strong>of</strong> any employee benefits times <strong>the</strong> number <strong>of</strong> hours spent in preparation.<br />

This opportunity cost represents <strong>the</strong> amount <strong>of</strong> money and o<strong>the</strong>r benefits that an applicant<br />

or permittee would pay <strong>the</strong> person or people conducting <strong>the</strong> compliance activities.<br />

The $108 per hour was based on <strong>the</strong> annual payroll and number <strong>of</strong> paid employees <strong>of</strong><br />

<strong>the</strong> engineering and related services industry sector reported in <strong>the</strong> 2002 Economic<br />

Census <strong>for</strong> Florida compiled by <strong>the</strong> U.S. Census Bureau (www.census.gov). The ratio <strong>of</strong><br />

<strong>the</strong> annual payroll and <strong>the</strong> number <strong>of</strong> paid employees provides an estimate <strong>of</strong> <strong>the</strong> average<br />

annual salary per employee in 2002 dollars. The hourly salary was computed by dividing<br />

<strong>the</strong> annual salary by <strong>the</strong> number <strong>of</strong> working hours in a year estimated as 1,840<br />

hours. This hourly salary was increased by four percent per year <strong>for</strong> eight years, or by<br />

<strong>the</strong> factor 1.37, to convert <strong>the</strong> 2002 salary to an estimated 2010 salary assuming that<br />

annual raises averaged four percent per year over <strong>the</strong> eight year period. The 2010 average<br />

annual salary was <strong>the</strong>n multiplied by 3.0 to account <strong>for</strong> <strong>the</strong> employee’s salary, benefits,<br />

overhead and pr<strong>of</strong>it. This multiplier is from in-house sources. The actual multiplier<br />

<strong>for</strong> a particular business may differ from 3.0.<br />

Cost to Implement Alternative Frost / Freeze Protection Methods. There are two<br />

site-specific characteristics that will affect <strong>the</strong> type <strong>of</strong> frost / freeze protection method that<br />

would be effective in protecting <strong>the</strong> crop from a frost / freeze event: (1) <strong>the</strong> type <strong>of</strong> frost /<br />

freeze event; and (2) <strong>the</strong> height <strong>of</strong> <strong>the</strong> crop being protected.<br />

44324-000R4.docx<br />

There are two types <strong>of</strong> frost / freeze events: radiation and advection. A radiation event is<br />

characterized by an increase in temperature with height (temperature inversion) under<br />

clear and calm wea<strong>the</strong>r conditions. An advection event occurs when a cold air mass is<br />

moving into <strong>the</strong> local area and is characterized by windy conditions and no temperature<br />

inversion. Frost / freeze protection is more difficult during an advection event than during<br />

a radiation event. Using water <strong>for</strong> frost / freeze protection can effectively protect <strong>the</strong><br />

crop from cold damage under both types <strong>of</strong> freeze events, unless <strong>the</strong> wind speed is too<br />

great to allow sufficient water to freeze on <strong>the</strong> plant in a manner that does not harm <strong>the</strong><br />

plant.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-9<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Frost / freeze protection methods o<strong>the</strong>r than <strong>the</strong> use <strong>of</strong> water that are believed to be<br />

feasible in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area are being investigated with <strong>the</strong> help <strong>of</strong> <strong>the</strong> District’s<br />

FARMS program. These methods are as follows.<br />

1. High Tunnels, also called hoop houses, can be used to protect farm-raised fish<br />

and all types <strong>of</strong> crops except trees during advection and radiation events<br />

2. Crop cloths, also called floating covers, row covers and freeze cloths, can be<br />

used to protect aquaculture ponds and crops that are short in height such as<br />

strawberries and small nursery plants. They are very effective during radiation<br />

events and may be somewhat effective during advection events if <strong>the</strong> wind is not<br />

blowing too hard.<br />

3. Wind machines would be effective <strong>for</strong> blueberries and tree crops during a radiation<br />

event. Growers in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area do not believe <strong>the</strong>y would be<br />

effective <strong>for</strong> strawberries because this crop grows very low to <strong>the</strong> ground. 3<br />

The capital and annual operation and maintenance costs <strong>of</strong> <strong>the</strong>se three methods were<br />

estimated <strong>for</strong> this SERC. O<strong>the</strong>r methods that may also be feasible to an individual grower<br />

include wraps and soil banking <strong>for</strong> young citrus, low tunnels <strong>for</strong> row crops, foam <strong>for</strong><br />

row crops and nurseries, enclosed shade houses <strong>for</strong> nurseries, soilless production <strong>for</strong><br />

row crops, fog <strong>for</strong> row crops and citrus, and heaters <strong>for</strong> all crops.<br />

A description and estimated costs associated with high tunnels, crop cloths and wind<br />

machines is provided below.<br />

High Tunnels. A high tunnel is a structure composed <strong>of</strong> a tubular aluminum framework<br />

covered in plastic. The structure resembles a green house but it is not as sturdy or as<br />

expensive as a traditional greenhouse. It covers <strong>the</strong> crop rows and is high enough to allow<br />

farm machinery to pass through. High tunnels are used in Florida and o<strong>the</strong>r States<br />

and countries to extend <strong>the</strong> growing season <strong>of</strong> vegetable crops and small horticultural<br />

crops and are expected to be effective in protecting crops from frost / freeze events. 4<br />

High tunnels are used in aquaculture operations in Hillsborough County to help control<br />

<strong>the</strong> water temperature <strong>of</strong> fish ponds and to act as a barrier to predatory birds. 5<br />

44324-000R4.docx<br />

3 From William Orendorff, FARMS Program Manager, Southwest Florida Water Management District,<br />

September 30, 2010.<br />

4 Mississippi Agricultural and Forestry Experiment Station, Mississippi State University Extension<br />

Service, “High Tunnel Crop Production Project”, 2009.<br />

5 From William Orendorff, FARMS Program Manager, Southwest Florida Water Management District,<br />

October 26, 2010.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-10<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

High tunnels can be used on all types <strong>of</strong> crops except large tree crops. High tunnels can<br />

be provided and installed by dealers and are available in a variety <strong>of</strong> sizes and ro<strong>of</strong> configurations.<br />

The cost estimate does not include electrical connections. The inside temperature<br />

is controlled by rolling up or down <strong>the</strong> plastic sides and/or opening or closing<br />

<strong>the</strong> doors located at ei<strong>the</strong>r end <strong>of</strong> <strong>the</strong> tunnel. The plastic can be removed to provide water<br />

to <strong>the</strong> crop during rainfall events, if needed. The amounts <strong>of</strong> water <strong>for</strong> crops grown<br />

on plastic mulch, such as strawberries, are permitted as if <strong>the</strong>re is no effective rainfall.<br />

Research conducted at <strong>the</strong> University <strong>of</strong> Florida’s Gulf Coast Research and Education<br />

Center in Balm during <strong>the</strong> 2007-08 and 2008-09 growing seasons found that high tunnels<br />

improved marketable strawberry yield by 29 percent during <strong>the</strong> early harvests and<br />

56 percent overall. 6 Balm is 36 miles southwest <strong>of</strong> <strong>Plant</strong> <strong>City</strong>. The strawberry cultivars<br />

tested were Strawberry Festival, Winter Dawn, and Florida Elyana. During <strong>the</strong>se seasons,<br />

no sprinkler irrigation <strong>for</strong> freeze protection was necessary inside <strong>the</strong> high tunnels.<br />

The minimum temperature inside <strong>the</strong> high tunnels during all freeze events was 34 o F.<br />

In addition, <strong>the</strong> marketable yields per acre <strong>of</strong> <strong>the</strong> next six harvests after freezing increased<br />

by 75 percent in 2007-08 and 64 percent in 2008-09. According to <strong>the</strong> researchers,<br />

several factors likely influenced <strong>the</strong>se results. First, high tunnels protected<br />

<strong>the</strong> flowers and small fruit from freezing temperatures, which were spared from <strong>the</strong> damage<br />

caused by sprinkler irrigation during freeze events. Second, <strong>the</strong> fruit was protected<br />

against <strong>the</strong> damaging effects <strong>of</strong> rainfall which reduces fruit number and quality. The researchers<br />

also noted that high tunnels can reduce <strong>the</strong> fuel costs <strong>of</strong> water pumping and<br />

<strong>the</strong> cost <strong>of</strong> fungicide applications. Because high tunnels protect <strong>the</strong> crop from rainfall,<br />

<strong>the</strong> incidence <strong>of</strong> foliar and fruit diseases that are disseminated by rain drops will be reduced.<br />

There<strong>for</strong>e, <strong>the</strong> cost <strong>of</strong> high tunnels will be at least partially if not fully <strong>of</strong>fset by <strong>the</strong><br />

benefits <strong>of</strong> high tunnels as <strong>the</strong>y increase crop yield per acre and lower production costs.<br />

The estimated cost per acre to purchase and install high tunnels to protect crops is provided<br />

in Table 4.4. Two cost estimates are provided. The first cost estimate is based on<br />

farmers' current experience in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area as <strong>the</strong>y work with <strong>the</strong> Southwest<br />

Florida Water Management District's FARMS program. 7 The cost <strong>of</strong> <strong>the</strong> frame<br />

structure is estimated to be about $27,000 per acre installed. This cost estimate reflects<br />

a frame that is about 15 feet high. The cost <strong>of</strong> <strong>the</strong> plastic sheeting is estimated to be<br />

about $3,000 per acre installed. The framework is permanent and lasts about 12 to 15<br />

44324-000R4.docx<br />

6 University <strong>of</strong> Florida, IFAS Extension, Berry / Vegetable Times, February 2010, “Notes on Cultural<br />

Practices: Can High Tunnels Reduce Water Volumes <strong>for</strong> Freeze Protection and Improve Strawberry<br />

Yields at <strong>the</strong> Same Time?” by Bielinski M. Santos and Teresa P. Salamé-Donoso, pages 5 to 8.<br />

7 The high tunnel cost in<strong>for</strong>mation was obtained from William Orendorff, FARMS Program Manager,<br />

Southwest Florida Water Management District, September 2010.<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

years. The plastic sheeting lasts about five years be<strong>for</strong>e it needs to be replaced. The<br />

annualized cost over <strong>the</strong> useful lives <strong>of</strong> <strong>the</strong>se components at five percent annual interest<br />

rate is $3,739 per acre per year.<br />

44324-000R4.docx<br />

Item<br />

Table 4.4<br />

<strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events<br />

using High Tunnels<br />

Value From<br />

FARMS<br />

Program (a)<br />

Value<br />

Provided by<br />

Grower (b)<br />

Acres 1 1<br />

Materials and Installation Cost (M and I Cost):<br />

Frame Structure $27,000 $60,000<br />

Plastic sheeting $3,000 $5,000<br />

Total Cost $30,000 $65,000<br />

Useful Life – Frame 12 12<br />

Useful Life – Plastic 5 3<br />

Annualized M and I Cost at 5% annual interest rate (c) $3,739 $8,606<br />

Annual Labor Cost (d) $273 $273<br />

Total Annualized Cost per Farmed Acre $4,012 $8,879<br />

Avoided fuel savings from avoided ground water use (e) $163 $163<br />

Net Annualized Cost per Farmed Acre $3,849 $8,716<br />

(a) Based on farmers' experience in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area as <strong>the</strong>y work with <strong>the</strong> Southwest<br />

Florida Water Management District's FARMS program. In<strong>for</strong>mation obtained from William Orendorff,<br />

FARMS Program Manager. This method can be used on all types <strong>of</strong> crops except tree<br />

crops.<br />

(b) Based on 2009 and 2010 cost in<strong>for</strong>mation provided by a Florida strawberry grower.<br />

(c) The 5% annual interest rate is <strong>the</strong> current prime rate <strong>of</strong> 3.25% (Wall Street Journal) plus 1.75<br />

percentage points. This is a high end estimate <strong>of</strong> <strong>the</strong> current interest rate that farmers would pay<br />

<strong>for</strong> an intermediate term loan. Currently such interest rates are roughly 3.5%.<br />

(d) Annualized cost to use and maintain <strong>the</strong> high tunnels is <strong>the</strong> average <strong>of</strong> <strong>the</strong> two year costs in 2009<br />

and 2010 provided by <strong>the</strong> Florida strawberry grower.<br />

(e) Avoided cost is <strong>the</strong> fuel cost estimated as $0.20 per 1,000 gallons <strong>of</strong> water pumped at 6,788 gallons<br />

per hour per acre <strong>for</strong> 24 hours over five days. The $0.20 per 1,000 gallons is based on $2.40<br />

per gallon cost <strong>of</strong> diesel fuel to growers and 210 feet <strong>of</strong> total dynamic head. The 6,788 gallons<br />

per hour per acre is <strong>the</strong> permitted frost / freeze quantity <strong>for</strong> blueberry, nursery and strawberry<br />

production. The permitted frost / freeze quantity <strong>for</strong> citrus is 3,000 gallons per hour per acre.<br />

The second cost estimate was provided by a Florida strawberry grower and reflects<br />

costs experienced in 2009 and 2010. The cost <strong>of</strong> <strong>the</strong> frame structure is significantly<br />

higher than <strong>the</strong> cost experienced by <strong>the</strong> FARMS program because <strong>the</strong> plastic on all<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

sides, including <strong>the</strong> ceiling can be easily opened and closed. This grower provided two<br />

years <strong>of</strong> annual labor costs per acre (2009 and 2010) associated with using and maintaining<br />

<strong>the</strong> tunnels. The average <strong>of</strong> <strong>the</strong>se two costs, $273, was used <strong>for</strong> both <strong>the</strong><br />

FARMS cost estimate and <strong>the</strong> grower’s cost estimate.<br />

The total annualized cost per acre is estimated to be $4,012 based primarily on <strong>the</strong><br />

FARMS cost data and $8,879 based on <strong>the</strong> grower’s cost data. The estimated avoided<br />

fuel cost savings from not needing to use ground water <strong>for</strong> frost / freeze protection was<br />

deducted from <strong>the</strong>se costs. This avoided fuel cost was estimated as $0.20 per 1,000<br />

gallons <strong>of</strong> water pumped at 6,788 gallons per hour <strong>for</strong> 24 hours over five days per year.<br />

The 6,788 gallons per hour is <strong>the</strong> permitted allocation. The estimated avoided fuel cost<br />

is $163 per acre per year. The net annualized cost per acre is estimated to range from<br />

$3,849 using <strong>the</strong> FARMS in<strong>for</strong>mation and $8,716 using <strong>the</strong> grower’s in<strong>for</strong>mation.<br />

The estimated cost to purchase and install high tunnels over fish ponds is provided in<br />

Table 4.5. This cost estimate is based on in<strong>for</strong>mation provided by a high tunnel manufacturer<br />

and retailer based on specifications provided by a southwest Florida tropical fish<br />

farm owner. The total materials and installation cost <strong>for</strong> a 26 foot wide x 130 foot long<br />

structure with a four foot sidewall that is partially underground, including <strong>the</strong> cover and<br />

skirting is $7,825. Given <strong>the</strong> useful lives <strong>of</strong> <strong>the</strong> structure, cover and skirting, <strong>the</strong> annualized<br />

cost is about $78 per 100 square feet <strong>of</strong> pond.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-13<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.5<br />

<strong>Estimated</strong> Cost to Protect Fish Ponds from Frost / Freeze Events<br />

using High Tunnels (a)<br />

Value<br />

Acres (b) 0.078<br />

Materials and Installation Cost (M and I Cost):<br />

Frame Structure (c) $6,250<br />

Plastic sheeting to cover structure (d) $750<br />

Skirting on sides <strong>of</strong> structure $825<br />

Total Cost $7,825<br />

Useful Life – Frame 8<br />

Useful Life – Plastic and Skirting 1<br />

Annualized M and I Cost at 5% annual interest rate (e) $2,621<br />

Total Annualized Cost per 100 square feet <strong>of</strong> pond $77.54<br />

(a)<br />

(b)<br />

(c)<br />

(d)<br />

Based on cost quote provided by Stuppy Greenhouse, Inc. <strong>of</strong> Kansas <strong>City</strong>,<br />

Missouri and high tunnel specifications and size provided by a tropical fish<br />

farm owner in southwest Florida.<br />

This table represents <strong>the</strong> cost <strong>for</strong> a high tunnel that is 26 feet wide x 130 feet<br />

long that covers one fish pond.<br />

The frame structure is 26 x 130 feet with a four foot sidewall that is partially<br />

underground.<br />

This is a single layer <strong>of</strong> clear polyethylene.<br />

(e) The 5% annual interest rate is <strong>the</strong> current prime rate <strong>of</strong> 3.25% (Wall Street<br />

Journal) plus 1.75 percentage points. This is a high end estimate <strong>of</strong> <strong>the</strong> current<br />

interest rate that farmers would pay <strong>for</strong> an intermediate term loan. Currently<br />

such interest rates are roughly 3.5%.<br />

Crop Cloths. Crop cloths are used to cover <strong>the</strong> crop during frost / freeze events and<br />

may be used on all crops except trees. They are extended over <strong>the</strong> field and are held in<br />

place by sand bags placed every 3 to 5 feet. The wire framework that supports <strong>the</strong> crop<br />

cloths is installed after <strong>the</strong> crop is planted and watered and be<strong>for</strong>e frost / freeze events<br />

are expected. Each time a frost / freeze event is imminent, <strong>the</strong> cloths are placed over <strong>the</strong><br />

crop until <strong>the</strong> frost / freeze event is over.<br />

44324-000R4.docx<br />

The crop cloths are stored until <strong>the</strong> next frost / freeze event. Cloth storage is probably<br />

<strong>the</strong> most challenging part <strong>of</strong> this method because farmers are typically using most or all<br />

<strong>of</strong> <strong>the</strong>ir indoor shed space <strong>for</strong> equipment and parts. The cloths are 500 foot long sheets<br />

that must be folded into long and narrow strips and <strong>the</strong>n rolled up. They can be stored<br />

indoors or covered with a tarp and stored in a shaded area. Crop cloths need to be replaced<br />

about every two to three years. The frequency <strong>of</strong> replacement depends on how<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

<strong>of</strong>ten <strong>the</strong>y are used and how protected <strong>the</strong>y are during storage. According to <strong>the</strong> strawberry<br />

grower who provided cost in<strong>for</strong>mation <strong>for</strong> <strong>the</strong> high tunnels and <strong>the</strong> crop cloths,<br />

<strong>the</strong>re may be food safety issues associated with unsanitary crop cloths being in contact<br />

with <strong>the</strong> crop.<br />

The cloth comes in many weights, from 0.5 ounces per square yard to 2 ounces per<br />

square yard. Strawberry growers in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area believe that cloth weights<br />

between 1.5 and 2 ounces per square yard are appropriate to protect <strong>the</strong> crop from <strong>the</strong><br />

temperature expected during freeze events.<br />

The estimated cost per acre to purchase <strong>the</strong> crop cloth is provided in Table 4.6. Two<br />

cost estimates are provided – one based on cost in<strong>for</strong>mation from <strong>the</strong> District’s FARMS<br />

program and one based on cost in<strong>for</strong>mation provided by a Florida strawberry grower.<br />

The first cost estimate is based on farmers' current experience in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

area as <strong>the</strong>y work with <strong>the</strong> Southwest Florida Water Management District's FARMS program.<br />

8 The purchase price <strong>of</strong> <strong>the</strong> crop cloth is estimated to be $2,000 per acre with a<br />

useful life <strong>of</strong> 2 years. The cost <strong>of</strong> <strong>the</strong> wire framework is estimated to be $1,000 with a<br />

useful life <strong>of</strong> five years. A machine can be used to feed out <strong>the</strong> cloth as workers cover<br />

<strong>the</strong> field. The estimated cost is $1,200 per machine which has a useful life <strong>of</strong> about 15<br />

years. The cost <strong>of</strong> sandbags is from <strong>the</strong> strawberry grower and <strong>the</strong>y are expected to last<br />

about 3 years. The annualized cost over <strong>the</strong> useful lives <strong>of</strong> <strong>the</strong>se components at five<br />

percent annual interest rate is $3,798 per acre. The annual cost <strong>for</strong> <strong>the</strong> farm to install<br />

and remove <strong>the</strong> cloth was obtained from <strong>the</strong> strawberry grower and is <strong>the</strong> average <strong>of</strong> two<br />

years <strong>of</strong> cost data (2009 and 2010). This value is $826 per acre per year. The total annual<br />

cost to use crop cloths is estimated to be $2,412 per farmed acre per year.<br />

44324-000R4.docx<br />

8 The crop cloth cost in<strong>for</strong>mation was obtained from William Orendorff, FARMS Program Manager,<br />

Southwest Florida Water Management District, September 2010 and Ron Cohen, P.E. District Agricultural<br />

Engineer, October 2010.<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

44324-000R4.docx<br />

Item<br />

Table 4.6<br />

<strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events using Crop Cloths (a)<br />

Value from FARMS<br />

Program (b)<br />

Value Provided<br />

by Grower (c)<br />

Acres 1 1<br />

Materials Cost:<br />

Crop Cloth $2,000 $2,000<br />

Wire Framework $1,000 $1,200<br />

Cloth installation machine (d) $48 $200<br />

Cloth installation machine reels – 2 needed over 25 acres $0 $32<br />

Sandbags $750 $750<br />

Cloth Storage $0 $7,500<br />

Total Cost $3,798 $11,682<br />

Useful Life in years – Cloth 2 3<br />

Useful Life in years – Wire framework 5 5<br />

Useful Life in years – Machine and reels 15 15<br />

Useful Life in years – Sandbags 3 3<br />

Useful Life in years – Cloth storage 15 15<br />

Annualized Materials Cost at 5% annual interest rate (e) $1,587 $2,032<br />

Annual Cost to Install and Remove Cloth (f) $826 $826<br />

Total Annualized Cost per Acre $2,412 $2,857<br />

Avoided fuel savings from avoided ground water use (g) $163 $163<br />

Net Annualized Cost per Farmed Acre $2,249 $2,694<br />

(a) Crop cloths are also called floating covers, row covers and freeze cloths. This method can be used on all crops<br />

except tree crops.<br />

(b) Based on farmers' experience in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area as <strong>the</strong>y work with <strong>the</strong> Southwest Florida Water Management<br />

District's FARMS program. In<strong>for</strong>mation obtained from William Orendorff, FARMS Program Manager and<br />

Ron Cohen, District Agricultural Engineer.<br />

(c) Based on 2009 and 2010 cost in<strong>for</strong>mation provided by a Florida strawberry grower.<br />

(d) The FARMS Program value uses a machine cost <strong>of</strong> $1,200 averaged over 25 acres. The grower value uses a<br />

machine cost <strong>of</strong> $5,000 averaged over 25 acres.<br />

(e) The 5% annual interest rate is <strong>the</strong> current prime rate <strong>of</strong> 3.25% (Wall Street Journal) plus 1.75 percentage points.<br />

This is a high end estimate <strong>of</strong> <strong>the</strong> current interest rate that farmers would pay <strong>for</strong> an intermediate term loan. Currently<br />

such interest rates are roughly 3.5%.<br />

(f)<br />

Annual cost to install and remove cloth is <strong>the</strong> average <strong>of</strong> <strong>the</strong> two year costs in 2009 and 2010 provided by <strong>the</strong> Florida<br />

strawberry grower.<br />

(g) Avoided cost is <strong>the</strong> fuel cost estimated as $0.20 per 1,000 gallons <strong>of</strong> water pumped at 6,788 gallons per hour <strong>for</strong><br />

24 hours over five days. The $0.20 per 1,000 gallons is based on $2.40 per gallon cost <strong>of</strong> diesel fuel to growers<br />

and 210 feet <strong>of</strong> total dynamic head. The 6,788 gallons per hour per acre is <strong>the</strong> permitted frost / freeze quantity <strong>for</strong><br />

blueberry, nursery and strawberry production. The permitted frost / freeze quantity <strong>for</strong> citrus is 3,000 gallons.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-16<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

The second cost estimate was provided by a Florida strawberry grower and reflects<br />

costs experienced in 2009 and 2010. In this cost estimate <strong>the</strong> cost <strong>of</strong> <strong>the</strong> machine is<br />

higher. An additional cost is added <strong>for</strong> <strong>the</strong> machine reels. In addition, <strong>the</strong> cost to build a<br />

storage building to store <strong>the</strong> crop cloths in a sanitary manner is added. This cost is estimated<br />

as $75 per square foot times 100 square feet <strong>of</strong> building floor space <strong>for</strong> a total<br />

cost <strong>of</strong> $7,500. The useful life <strong>of</strong> <strong>the</strong> storage is estimated to be 15 years. The life <strong>of</strong> <strong>the</strong><br />

crop cloth is increased by one year to account <strong>for</strong> a benefit <strong>of</strong> this storage. The annualized<br />

cost over <strong>the</strong> useful lives <strong>of</strong> <strong>the</strong>se components at five percent annual interest rate is<br />

$2,032 per acre. The annual cost <strong>for</strong> <strong>the</strong> farm to install and remove <strong>the</strong> cloth was obtained<br />

from <strong>the</strong> strawberry grower and is <strong>the</strong> average <strong>of</strong> two years <strong>of</strong> cost data (2009<br />

and 2010). This value is $826 per acre per year. The total annual cost to use crop<br />

cloths is estimated to be $2,857 per farmed acre per year.<br />

The total annualized cost per acre is estimated to be $2,412 based primarily on <strong>the</strong><br />

FARMS cost data and $2,857 based on <strong>the</strong> grower’s cost data. The estimated avoided<br />

fuel cost savings from not needing to use ground water <strong>for</strong> frost / freeze protection was<br />

deducted from <strong>the</strong>se costs. This avoided fuel cost was estimated as $0.20 per 1,000<br />

gallons <strong>of</strong> water pumped at 6,788 gallons per hour <strong>for</strong> 24 hours over five days per year.<br />

The 6,788 gallons per hour is <strong>the</strong> permitted allocation. The estimated avoided fuel cost<br />

is $163 per acre per year. The net annualized cost per acre is estimated to range from<br />

$2,249 using <strong>the</strong> FARMS in<strong>for</strong>mation and $2,694 using <strong>the</strong> grower’s in<strong>for</strong>mation.<br />

Wind Machines. Wind Machines can be used to protect blueberries and tree crops from<br />

radiation frost events. These machines provide warmth to <strong>the</strong> plants by stirring <strong>the</strong> air so<br />

that <strong>the</strong> warmer air mixes with <strong>the</strong> colder air that is closer to <strong>the</strong> ground. Wind machines<br />

are about 15 to 20 feet high and are a permanent part <strong>of</strong> <strong>the</strong> field. There are some wind<br />

machines that are also low to <strong>the</strong> ground and are used to mix pockets <strong>of</strong> trapped air.<br />

The estimated cost per acre to purchase, install and use wind machines <strong>for</strong> a 10 acre<br />

blueberry farm is provided in Table 4.7. These costs are based on farmers' current experience<br />

in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area as <strong>the</strong>y work with <strong>the</strong> Southwest Florida Water<br />

Management District's FARMS program. 9 The purchase price and installation cost <strong>of</strong> a<br />

wind machine is $30,000. One wind machine should be sufficient to protect 10 acres <strong>of</strong><br />

blueberries. The useful life <strong>of</strong> <strong>the</strong> wind machine is about 20 years.<br />

44324-000R4.docx<br />

The major operating cost is <strong>the</strong> cost <strong>of</strong> diesel fuel to power <strong>the</strong> machine. The annual fuel<br />

cost was estimated based on an on-farm diesel fuel price <strong>of</strong> $2.40 per gallon, <strong>the</strong> consumption<br />

<strong>of</strong> 10 gallons <strong>of</strong> diesel fuel per hour <strong>of</strong> operation, and 24 operating hours per<br />

9 The wind machine cost in<strong>for</strong>mation was obtained from William Orendorff, FARMS Program Manager,<br />

Southwest Florida Water Management District, September 2010.<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

day over five radiation freeze days per year. These assumptions imply an annual fuel<br />

cost <strong>of</strong> $2,880 per year <strong>for</strong> a 10-acre farm using one wind machine. Given <strong>the</strong>se costs,<br />

<strong>the</strong> annual total cost per acre to use wind machines <strong>for</strong> radiation frost protection is estimated<br />

to be $529 per farmed acre per year.<br />

The cost savings associated with not needing to use irrigation system <strong>for</strong> radiation frost<br />

protection is estimated to be $163 per acre and is included in <strong>the</strong> cost estimate provided<br />

in Table 4.7. The estimated net annualized cost per farmed acre is $366.<br />

44324-000R4.docx<br />

Item<br />

Value<br />

Acres 10<br />

Table 4.7<br />

<strong>Estimated</strong> Cost to Protect Crops from Frost / Freeze Events<br />

using Wind Machines (a)<br />

Materials and Installation Cost (M and I Cost):<br />

1 Wind Machine $30,000<br />

Useful Life 20<br />

Annualized M and I Cost at 5% annual interest rate (b) $2,407<br />

Average Annual Fuel Cost (c) $2,880<br />

Total Annualized Cost per Acre $529<br />

Avoided fuel savings from avoided ground water use (d) $163<br />

Net annualized cost per farmed acre $366<br />

(a)<br />

(b)<br />

(c)<br />

(d)<br />

Wind machines could be used <strong>for</strong> blueberries and tree crops. Based on farmers' experience<br />

in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area as <strong>the</strong>y work with <strong>the</strong> Southwest Florida Water Management<br />

District's FARMS program. In<strong>for</strong>mation obtained from William Orendorff, FARMS Program<br />

Manager.<br />

The 5% annual interest rate is <strong>the</strong> current prime rate <strong>of</strong> 3.25% (Wall Street Journal) plus<br />

1.75 percentage points. This is a high end estimate <strong>of</strong> <strong>the</strong> current interest rate that farmers<br />

would pay <strong>for</strong> an intermediate term loan. Currently such interest rates are roughly 3.5%.<br />

Average annual fuel cost is equal to <strong>the</strong> estimated on-farm diesel price <strong>of</strong> $2.40 per gallon<br />

times 10 gallons per hour operated times 24 operating hours per day over five radiation<br />

freeze days per year These values are from William Orendorff, FARMS Program Manager,<br />

Southwest Florida Water Management District.<br />

Avoided cost is <strong>the</strong> fuel cost estimated as $0.20 per 1,000 gallons <strong>of</strong> water pumped at<br />

6,788 gallons per hour <strong>for</strong> 24 hours over five days. The $0.20 per 1,000 gallons is based on<br />

$2.40 per gallon cost <strong>of</strong> diesel fuel to growers and 210 feet <strong>of</strong> total dynamic head. The<br />

6,788 gallons per hour per acre is <strong>the</strong> permitted frost / freeze quantity <strong>for</strong> blueberry, nursery<br />

and strawberry production.<br />

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SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

4.7 Cost to Use Alternative Water Sources <strong>for</strong> Frost / Freeze Protection<br />

This subsection presents and describes <strong>the</strong> estimated costs associated with using alternative<br />

water sources to supply water needed <strong>for</strong> frost / freeze protection. These water<br />

sources could <strong>of</strong>fset some or all <strong>of</strong> <strong>the</strong> withdrawals from ground water. They are:<br />

●<br />

●<br />

●<br />

Tailwater recovery system<br />

Horizontal wells<br />

Reclaimed water<br />

Each is discussed in turn. Strawberries, blueberries, nurseries (container and some<br />

field), citrus (ridge and flatwood) and tropical fish farms are activities that typically require<br />

frost / freeze protection.<br />

Tailwater Recovery System. A tailwater recovery system is a system to collect, store<br />

and use water from tailwater or rainfall <strong>for</strong> irrigation. Typically this system consists <strong>of</strong> a<br />

water storage pond or reservoir, a pumping station with filtration, pipes and irrigation distribution<br />

system that moves water from <strong>the</strong> pond to <strong>the</strong> field <strong>for</strong> cold protection, crop establishment<br />

or supplemental irrigation. When this water is used <strong>for</strong> supplemental irrigation,<br />

additional treatment might be needed to prevent clogging <strong>of</strong> drip and low volume<br />

irrigation systems or to eliminate any plant disease problems.<br />

According to <strong>the</strong> District 10 ,<br />

44324-000R4.docx<br />

“About six percent <strong>of</strong> <strong>the</strong> agricultural permits in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area currently<br />

utilize tailwater recovery / rainfall harvest ponds to provide water <strong>for</strong> cold protection.<br />

These systems are frequently operated in conjunction with ground water withdrawals.<br />

This conjunctive use results in a substantial reduction in ground water withdrawals<br />

<strong>for</strong> <strong>the</strong>se permittees. The District’s Facilitating Agricultural Resource Management<br />

Systems (FARMS) program has provided funding and technical assistance <strong>for</strong><br />

eight agricultural projects in Hillsborough County and is working to increase <strong>the</strong><br />

number <strong>of</strong> tailwater recovery / rainfall harvesting ponds. To-date, <strong>the</strong> FARMS program<br />

has a total <strong>of</strong> seven projects involving strawberry production in Hillsborough<br />

County. Three <strong>of</strong> <strong>the</strong>se projects are operational, one is under construction and three<br />

have contracts pending. The total project costs range from $151,000 to $346,000,<br />

with <strong>the</strong> District’s contributions ranging from $65,500 to $142,750. Each <strong>of</strong> <strong>the</strong>se<br />

projects can or will be capable <strong>of</strong> providing 100 percent <strong>of</strong> <strong>the</strong> cold protection quantities<br />

needed <strong>for</strong> three days. Ideally, as many growers as practical in <strong>the</strong> area should<br />

10 “Developing Means to Significantly Increase <strong>the</strong> Percentage <strong>of</strong> Freeze Protection in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

Area Accomplished by Methods O<strong>the</strong>r Than Upper Floridan Aquifer Groundwater”, Team Leaders – Eric De-<br />

Haven and Ron Cohen, Southwest Florida Water Management District, Draft – April 15, 2010.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-19<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

use surface water <strong>for</strong> cold protection and crop establishment. However, level <strong>of</strong> service,<br />

pond dimensions, site specific topography and economics may limit <strong>the</strong> number<br />

<strong>of</strong> growers that will use surface water.”<br />

The capital cost per acre <strong>of</strong> <strong>the</strong> 17 tailwater recovery systems constructed in 2008 and<br />

2009 under <strong>the</strong> FARMS program ranged from $272 per acre <strong>for</strong> a 1,600 acre farm to<br />

$13,300 per acre <strong>for</strong> a 55 acre farm. The capital cost per acre averaged over <strong>the</strong> 17<br />

projects was $3,800 per acre. 11 These costs do not include any net income reductions<br />

associated with siting <strong>the</strong> tailwater recovery pond on productive cropland, which are addressed<br />

below.<br />

Two cost estimates <strong>for</strong> a tailwater recovery system were developed <strong>for</strong> this SERC. The<br />

first cost estimate assumes that <strong>the</strong> pond is below ground and must be excavated. The<br />

second cost estimate assumes that <strong>the</strong> pond is above ground and must be created.<br />

These two cost estimates provide a range <strong>of</strong> potential costs associated with a tailwater<br />

recovery system.<br />

There are likely to be economies <strong>of</strong> scale such that <strong>the</strong> cost per farm acre <strong>for</strong> a tailwater<br />

recovery system falls as <strong>the</strong> size <strong>of</strong> <strong>the</strong> farm increases. To account <strong>for</strong> this, cost estimates<br />

<strong>for</strong> <strong>the</strong> two tailwater recovery systems are provided <strong>for</strong> a 10 acre farm, a 25 acre<br />

farm and a 100 acre farm. These farm sizes represent <strong>the</strong> farm sizes in <strong>the</strong> DPC WUCA.<br />

One <strong>of</strong> <strong>the</strong> cost items associated with a tailwater recovery system is <strong>the</strong> amount <strong>of</strong> productive<br />

farm land that would need to be taken out <strong>of</strong> production in order to site <strong>the</strong> tailwater<br />

pond. The cost would be <strong>the</strong> lost net income from <strong>the</strong> lost production. In some<br />

cases, <strong>the</strong> pond can be sited on land that is not used <strong>for</strong> production and in this case<br />

<strong>the</strong>re would be no lost income. It is likely that one <strong>of</strong> <strong>the</strong> design considerations will be to<br />

minimize <strong>the</strong> amount <strong>of</strong> productive land displaced by <strong>the</strong> pond. Low lying areas and fumigant<br />

buffer zone areas might be used to minimize lost income.<br />

44324-000R4.docx<br />

The size <strong>of</strong> <strong>the</strong> tailwater recovery pond is based on site specific parameters such as<br />

pond depth, <strong>the</strong> run<strong>of</strong>f volume, site topography, and <strong>the</strong> amount <strong>of</strong> water needed. Tailwater<br />

recovery pond sizes used in this cost estimation were based on a pond with an<br />

average depth <strong>of</strong> 10 feet that would be used <strong>for</strong> frost / freeze protection. Detailed modeling<br />

to evaluate <strong>the</strong> optimum pond size was not conducted. However, calculations indicate<br />

that <strong>the</strong> pond sizes used in this cost estimation will provide water <strong>for</strong> about 1.5 days<br />

<strong>of</strong> 24 hour frost / freeze protection if <strong>the</strong> amount <strong>of</strong> water stored at <strong>the</strong> time protection is<br />

needed is 75 to 90 percent <strong>of</strong> pond capacity. Frost / freeze events that last longer than<br />

11 From FARMS 2008 Annual Report dated February 2009 and FARMS 2009 Annual Report dated June 2010<br />

prepared by <strong>the</strong> Southwest Florida Water Management District.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-20<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

36 consecutive hours or that occur when <strong>the</strong> pond is below 75 to 90 percent <strong>of</strong> capacity<br />

would require alternative cold protection methods (i.e., crop cloths, high tunnels) or o<strong>the</strong>r<br />

water sources such as ground water to supplement frost / freeze protection water needs.<br />

Alternative frost / freeze protection methods o<strong>the</strong>r than water will reduce <strong>the</strong> amount <strong>of</strong><br />

ground water that would be needed during frost / freeze events.<br />

The estimated costs <strong>of</strong> <strong>the</strong> tailwater recovery system are presented in two parts and<br />

<strong>the</strong>n summarized. First, <strong>the</strong> estimated cost <strong>of</strong> <strong>the</strong> tailwater recovery system is presented.<br />

Then, estimates <strong>of</strong> net income per farm acre <strong>for</strong> strawberries and citrus are presented.<br />

These are <strong>the</strong> predominant crops grown in <strong>the</strong> DPC WUCA that typically require frost /<br />

freeze protection. Finally, <strong>the</strong> costs are organized into three tables that summarize <strong>the</strong><br />

estimated total cost <strong>of</strong> a tailwater recovery system <strong>for</strong> each <strong>of</strong> <strong>the</strong> two tailwater cost estimates,<br />

each <strong>of</strong> <strong>the</strong> three farm sizes and each <strong>of</strong> <strong>the</strong> two crops.<br />

The estimated capital costs per acre <strong>of</strong> a tailwater recovery system presented in <strong>the</strong><br />

tables below are within <strong>the</strong> cost per acre range <strong>of</strong> <strong>the</strong> tailwater recovery systems built<br />

under <strong>the</strong> District’s FARMS program. The estimated costs per acre are in <strong>the</strong> high end<br />

<strong>of</strong> this range because in <strong>the</strong> tables below it is assumed that all components are installed<br />

new, none <strong>of</strong> <strong>the</strong> existing farm infrastructure is used, and <strong>the</strong>re are no existing ponds<br />

that could be used. The District’s FARMS program provides <strong>for</strong> <strong>the</strong> cost-sharing <strong>of</strong> tailwater<br />

recovery systems and o<strong>the</strong>r methods to reduce frost/freeze quantities permitted<br />

from <strong>the</strong> Upper Floridan aquifer. Additional in<strong>for</strong>mation regarding this program is provided<br />

in Chapter 7.0 <strong>of</strong> this SERC.<br />

There may be relatively nominal County and District permitting costs associated with<br />

constructing <strong>the</strong> ponds. These costs are not included in <strong>the</strong> cost estimates but are not<br />

expected to significantly change <strong>the</strong> estimated costs per farmed acre per year reported<br />

in this SERC. It is likely that most, if not all, ponds would require <strong>the</strong> excavation <strong>of</strong> less<br />

than 100,000 cubic yards <strong>of</strong> soil and will be less than five surface acres. If this is <strong>the</strong><br />

case, <strong>the</strong>n <strong>the</strong> District would consider <strong>the</strong> activity an AGSWM exemption as long as<br />

<strong>the</strong>re are no wetland impacts.12 The exemption fee is $100 and includes <strong>the</strong> AGSWM<br />

process option <strong>of</strong> having <strong>the</strong> USDA Natural Resource Conservation Service design <strong>the</strong><br />

pond at no cost to <strong>the</strong> applicant. Provision <strong>of</strong> this service is at <strong>the</strong> discretion <strong>of</strong> <strong>the</strong> applicant.<br />

A District Environmental Resource Permit (ERP) is not required. If <strong>the</strong>re are wetland<br />

impacts, <strong>the</strong>n a General or Individual ERP is required depending on <strong>the</strong> extent <strong>of</strong><br />

wetland impacts. The permit fee will vary from $1,500 to $3,900 and <strong>the</strong> permit is perpetual.<br />

44324-000R4.docx<br />

12 In<strong>for</strong>mation regarding District permitting is from <strong>the</strong> Southwest Florida Water Management District.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-21<br />

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HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

In addition to addressing pond permitting issues with <strong>the</strong> District, <strong>the</strong> applicant will need<br />

to obtain an operating permit from <strong>the</strong> county. For ponds located in Hillsborough County<br />

that are less than 100,000 cubic yards excavated <strong>the</strong> County’s land excavation review<br />

process fee is $525. 13 In addition, <strong>the</strong> Hillsborough County Environmental Protection<br />

Commission review fee is $870. Once <strong>the</strong>se fees are paid and <strong>the</strong> operating permit application<br />

is approved, <strong>the</strong>n <strong>the</strong> operating permit <strong>for</strong> <strong>the</strong> pond is issued. If <strong>the</strong> applicant<br />

contracted with <strong>the</strong> District’s FARMS program or <strong>the</strong> USDA’s EQUIP program and <strong>the</strong>re<br />

are no wetland impacts, <strong>the</strong> entire process takes about one month. The applicant does<br />

not need to receive funding from <strong>the</strong>se programs in order to qualify.<br />

If <strong>the</strong> applicant does not work with <strong>the</strong> District’s FARMS program or <strong>the</strong> USDA’s EQUIP<br />

program, <strong>the</strong>n <strong>the</strong> process to obtain an operating permit could take up to six months and<br />

could take longer if significant issues, such as wetland impacts, need to be addressed.<br />

In developing <strong>the</strong> tailwater recovery cost estimates, it is assumed that <strong>the</strong> excavated<br />

material can ei<strong>the</strong>r be used on <strong>the</strong> farm <strong>for</strong> <strong>the</strong> above ground dikes or o<strong>the</strong>r uses, or is<br />

hauled <strong>of</strong>f site. If <strong>the</strong>re is a strong construction market in <strong>the</strong> regional area, this fill material<br />

could be sold to developers. If <strong>the</strong>re is no market <strong>for</strong> <strong>the</strong> fill and <strong>the</strong> fill cannot be<br />

used on <strong>the</strong> farm, <strong>the</strong>n <strong>the</strong> grower may need to pay <strong>for</strong> its disposal. The pond cost estimates<br />

provided in <strong>the</strong>se tables do not include any revenue from selling <strong>the</strong> fill or any<br />

payments made to o<strong>the</strong>rs to accept <strong>the</strong> excavated material.<br />

The estimated costs <strong>of</strong> <strong>the</strong> tailwater recovery system that includes <strong>the</strong> cost <strong>of</strong> excavating<br />

a below ground pond <strong>for</strong> each <strong>of</strong> <strong>the</strong> three farm sizes are provided in Table 4.8. The estimated<br />

annualized installation and O&M cost per farmed acre per year in 2010 dollars is<br />

$1,029 <strong>for</strong> a 10 acre farm, $750 <strong>for</strong> a 25 acre farm and $620 <strong>for</strong> a 100 acre farm. The<br />

methods used to estimate <strong>the</strong>se costs are described in <strong>the</strong> footnotes to this table.<br />

44324-000R4.docx<br />

13 In<strong>for</strong>mation regarding Hillsborough County permitting is from <strong>the</strong> Hillsborough County Planning and Growth<br />

Management Department<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-22<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

44324-000R4.docx<br />

Item<br />

Table 4.8<br />

<strong>Estimated</strong> Cost <strong>of</strong> a Tailwater Recovery System, Including Excavation <strong>of</strong><br />

Below Ground Pond For Three Farm Sizes in <strong>the</strong> DPC WUCA, 2010 $<br />

Small<br />

Farm<br />

Median<br />

Farm<br />

Large<br />

Farm<br />

Farm Size in Number <strong>of</strong> Acres 10 25 100<br />

Surface Acres <strong>of</strong> Tailwater Recovery Pond (a) 0.96 1.96 6.2<br />

Excavation Cost per Cubic Yard (EQIP EXMAT), 2007 dollars<br />

converted to 2010 dollars using 1.049202 (b)<br />

$3.67 $3.67 $3.67<br />

Cubic Yards Excavated 12,815 27,500 99,100<br />

Total Excavation Cost $47,059 $100,986 $363,916<br />

Filter, self-cleaning screen (c) $2,500 $6,000 $9,000<br />

Pump, centrifugal, diesel engine (d) $54,800 $84,570 $290,040<br />

Pond Inlet Culvert, cost per foot (c) $56 $71 $100<br />

Feet <strong>of</strong> pond water intake 30 30 60<br />

Total Pond Inlet Culvert Cost $1,680 $2,130 $6,000<br />

Pipe from pond to irrigation system, cost per foot <strong>of</strong> pipe (e) $70.00 $100.00 $120.00<br />

Feet <strong>of</strong> pipe from well to irrigation system 110 174 348<br />

Total Piping Cost $7,700 $17,393 $41,742<br />

Total Installation Cost $113,739 $211,078 $710,698<br />

Total Cost per Farm Acre (with Pond Acreage Removed<br />

from Denominator) $12,582 $9,161 $7,577<br />

Total Annual Cost Per Acre Per Year Amortized At 5%<br />

Over 20 Years $1,009.59 $735.13 $607.98<br />

Annual Operations and Maintenance Cost<br />

Total Management Cost (f) $172.80 $352.80 $1,116.00<br />

Management Cost per Farm Acre per Year (w/Pond<br />

Acreage Removed from Denominator) $19.12 $15.31 $11.90<br />

Total Annualized Installation and O&M Cost per Farm Acre<br />

per Year, 2010 $ $1,028.70 $750.45 $619.87<br />

(a)<br />

(b)<br />

(c)<br />

These estimated costs assume that all components are installed new, that none <strong>of</strong> <strong>the</strong> existing farm infrastructure<br />

is used, and <strong>the</strong>re are no existing ponds that could be used. For <strong>the</strong> purposes <strong>of</strong> this cost estimation,<br />

<strong>the</strong> pond is 10 feet deep. In addition, <strong>the</strong>re is a one foot freeboard.<br />

Source <strong>of</strong> costs is State <strong>of</strong> Florida, Area III Cost Share List <strong>for</strong> Selected Conservation Practices <strong>for</strong> EQIP,<br />

FY 2007, United States Department <strong>of</strong> Agriculture, Natural Resource Conservation Service, Environmental<br />

Quality Incentive Program (EQIP). Area III is <strong>the</strong> central Florida area which includes <strong>the</strong> counties <strong>of</strong> <strong>the</strong><br />

Southwest Florida Water Management District except <strong>for</strong> Citrus, Marion and Levy counties. All EQIP costs<br />

include installation. The cost cubic yard excavated includes compaction and/or hauling <strong>the</strong> soil from <strong>the</strong><br />

site.<br />

Cost <strong>of</strong> self-cleaning screens and culvert from in-house sources.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-23<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

(d)<br />

(e)<br />

(f)<br />

Centrifugal pump costs are from quotes by Hudson Pumps, Lakeland, Florida. Pump manufacturer <strong>for</strong> cost<br />

quote is Gorman-Rupp Pumps. The 10 acre farm would have a 1,100 gpm pump, 10 inch pipe diameter<br />

with dimensions 5 feet by 9 feet (Model number PA6C6OC-F6L) . The 25 acre farm would have a 2,800<br />

gpm pump, 16 inch pipe diameter with dimensions 6 feet by 11 feet (Model RP8A6O). The 100 acre farm<br />

would have 3 pumps with 3,667 gpm each, 18 inch diameter pipe, dimensions 5 feet by 11 feet each (Model<br />

RP8C6O). Includes installation and covering.<br />

Cost from in-house sources. Includes PVC Schedule 80 and installation.<br />

Management includes cleaning and re-grading <strong>of</strong> collection facilities, inspection and removal <strong>of</strong> debris and<br />

sediment, inspection <strong>of</strong> pipeline and pump components, and routine maintenance <strong>of</strong> mechanical components<br />

in accordance with manufacturer recommendations. Annual per acre cost is estimated at $180 using<br />

$12.00 per acre labor cost times 15 hours per year per acre <strong>of</strong> pond.<br />

The estimated costs <strong>of</strong> <strong>the</strong> tailwater recovery system that includes <strong>the</strong> cost <strong>of</strong> excavating<br />

an above ground pond <strong>for</strong> each <strong>of</strong> <strong>the</strong> three farm sizes are provided in Table 4.9. The<br />

estimated annualized installation and O&M cost per farm acre per year in 2010 dollars is<br />

$988 <strong>for</strong> a 10 acre farm, $648 <strong>for</strong> a 25 acre farm and $449 <strong>for</strong> a 100 acre farm. The methods<br />

used to estimate <strong>the</strong>se costs are described in <strong>the</strong> footnotes to this table.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-24<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.9<br />

<strong>Estimated</strong> Cost <strong>of</strong> a Tailwater Recovery System, Including Excavation <strong>of</strong> an<br />

Above Ground Pond <strong>for</strong> Three Farm Sizes in <strong>the</strong> DPC WUCA, 2010 $<br />

Small<br />

Farm<br />

Median<br />

Farm<br />

Farm Size in Number <strong>of</strong> Acres 10 25 100<br />

Large<br />

Farm<br />

Surface Acres <strong>of</strong> Tailwater Recovery Pond (a) 1.45 4.40 16.00<br />

Excavation Cost per Cubic Yard (EQIP EXMAT), 2007 dollars (b) $3.67 $3.67 $3.67<br />

Cubic Yards Excavated 3,700 6,500 12,300<br />

Total Excavation Cost $13,587 $23,869 $45,168<br />

Filter, self-cleaning screen (c) $2,500 $6,000 $9,000<br />

Pump, centrifugal, diesel engine (d) $54,800 $84,570 $290,040<br />

Pump, lift, diesel engine (e) $23,389 $24,670 $48,000<br />

Pipe from pond to irrigation system, cost per foot <strong>of</strong> pipe (f) $70 $100 $120<br />

Feet <strong>of</strong> pipe from well to irrigation system 110 174 348<br />

Total piping cost $7,700 $17,393 $41,742<br />

Total Installation Cost $101,976 $156,501 $433,950<br />

Total Cost per Farm Acre (with Pond Acreage Removed from<br />

Denominator) $11,927 $7,597 $5,166<br />

Total Annual Cost per Acre per Year Amortized at 5% over 20 years $957.06 $609.62 $414.54<br />

Annual Operations and Maintenance Cost<br />

Total Management Cost (g) $261.00 $792.00 $2,880.00<br />

Management Cost per Farm Acre per Year (w/ Pond Acreage<br />

Removed from Denominator $30.53 $38.45 $34.29<br />

Total Annualized Installation and O&M Cost per Farm Acre per Year $987.58 $648.06 $448.82<br />

(a)<br />

The depth <strong>of</strong> <strong>the</strong> above ground pond is four feet including a one foot freeboard. This is why <strong>the</strong> pond surface area is<br />

larger than <strong>the</strong> below ground pond. These estimated costs assume that all components are installed new, that none<br />

<strong>of</strong> <strong>the</strong> existing farm infrastructure is used, and <strong>the</strong>re are no existing ponds that could be used.<br />

(b) Source <strong>of</strong> costs is State <strong>of</strong> Florida, Area III Cost Share List <strong>for</strong> Selected Conservation Practices <strong>for</strong> EQIP, FY 2007,<br />

United States Department <strong>of</strong> Agriculture, Natural Resource Conservation Service, Environmental Quality Incentive<br />

Program (EQIP). Area III is <strong>the</strong> central Florida area which includes <strong>the</strong> counties <strong>of</strong> <strong>the</strong> Southwest Florida Water Management<br />

District except <strong>for</strong> Citrus, Marion and Levy counties. All EQIP costs include installation. The cost cubic yard<br />

excavated includes compaction and/or hauling <strong>the</strong> soil from <strong>the</strong> site.<br />

(c)<br />

(d)<br />

(e)<br />

Cost <strong>of</strong> self-cleaning screens and culvert from in-house sources.<br />

Centrifugal pump costs are from quotes by Hudson Pumps, Lakeland, Florida. Pump manufacturer <strong>for</strong> cost quote is<br />

Gorman-Rupp Pumps. The 10 acre farm would have a 1,100 gpm pump, 10 inch pipe diameter with dimensions 5<br />

feet by 9 feet (Model number PA6C6OC-F6L) . The 25 acre farm would have a 2,800 gpm pump, 16 inch pipe diameter<br />

with dimensions 6 feet by 11 feet (Model RP8A6O). The 100 acre farm would have 3 pumps with 3,667 gpm<br />

each, 18 inch diameter pipe, dimensions 5 feet by 11 feet each (Model RP8C6O). Includes installation and covering.<br />

44324-000R4.docx<br />

Cost <strong>of</strong> lift pumps from Godwin Pumps, Dri-Prime Pump with Diesel Engine mounted on skid.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-25<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

(f)<br />

(g)<br />

Cost from in-house sources. Includes PVC Schedule 80 and installation.<br />

Management includes cleaning and re-grading <strong>of</strong> collection facilities, inspection and removal <strong>of</strong> debris and sediment,<br />

inspection <strong>of</strong> pipeline and pump components, and routine maintenance <strong>of</strong> mechanical components in accordance with<br />

manufacturer recommendations. Annual per acre cost is estimated at $180 using $12.00 per acre labor cost times 15<br />

hours per year per acre <strong>of</strong> pond.<br />

In <strong>the</strong> event that some farm land would be removed from production to site <strong>the</strong> pond, <strong>the</strong><br />

farmer will experience a reduction in net income. The value <strong>of</strong> this reduction will depend<br />

on crop type, crop prices, costs <strong>of</strong> production, and <strong>the</strong> acres <strong>of</strong> land removed. This cost<br />

estimation considers <strong>the</strong> reduction in net income associated with tailwater recovery systems<br />

where <strong>the</strong> pond does not already exist on <strong>the</strong> property. To account <strong>for</strong> this net income<br />

reduction, <strong>the</strong> net incomes per acre per year associated with citrus and strawberry<br />

production were considered.<br />

A high and a low estimate <strong>of</strong> <strong>the</strong> net income per acre from orange production (citrus) are<br />

provided in Table 4.10. The net income per acre is equal to <strong>the</strong> on-tree orange revenue<br />

minus all variable costs associated with caring <strong>for</strong> <strong>the</strong> grove and producing <strong>the</strong> oranges.<br />

The on-tree revenue is equal to <strong>the</strong> revenue received <strong>for</strong> <strong>the</strong> oranges minus harvest and<br />

marketing costs. Variable costs are <strong>the</strong> costs that increase with increases in <strong>the</strong> land<br />

area planted in citrus. The cost <strong>of</strong> land is not included in <strong>the</strong> variable cost because <strong>the</strong><br />

land has already been purchased or leased and is <strong>the</strong>re<strong>for</strong>e a fixed cost. The net income<br />

estimate ranges from $738 per acre per year to $383 per acre per year. The costs used<br />

to estimate <strong>the</strong>se net income values incorporate <strong>the</strong> cost <strong>of</strong> grove management to protect<br />

<strong>the</strong> trees from citrus canker and citrus greening. The costs associated with replacing<br />

diseased trees include <strong>the</strong> cost <strong>of</strong> replacing seven trees per acre per year. For <strong>the</strong><br />

purposes <strong>of</strong> <strong>the</strong> tailwater recovery cost estimation, $738 per year per farmed acre was<br />

used which represents a citrus farm that manages <strong>for</strong> canker and greening but has not<br />

needed to replace diseased trees.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 4-26<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.10<br />

<strong>Estimated</strong> Annual Revenue and Cash Cost to Produce Southwest Florida Oranges<br />

With Citrus Canker and Citrus Greening Management, 2010 $<br />

$ per Farmed Acre per Year<br />

Diseased Trees Removed and Replaced NO YES (a)<br />

Revenue lost from not producing, on-tree (b) $1,837 $1,836<br />

Variable <strong>Costs</strong> – Avoided <strong>Costs</strong> <strong>of</strong> Not Producing (c)<br />

Production & Cultural <strong>Costs</strong> (d) $987 $1,263<br />

Interest on Production & Cultural <strong>Costs</strong> (d) $64 $82<br />

Management <strong>Costs</strong> (d) $48 $109<br />

Total Avoided Cost $1,099 $1,454<br />

Net Income (Revenue lost from not producing minus avoided<br />

cost <strong>of</strong> not producing)<br />

$738 $383<br />

(a) Cost assumes that, each year, 7 trees per acre are removed and replaced due to citrus canker<br />

or greening. The yield per acre used to estimate revenue is not different from <strong>the</strong> scenario<br />

where no trees are replaced because <strong>the</strong> Statewide average yield per acre is used in this evaluation.<br />

However, it would be expected that <strong>the</strong> yield per acre <strong>of</strong> a farm that does not need to<br />

replace trees would be greater than <strong>the</strong> yield per acre <strong>of</strong> a farm that replaces trees, all o<strong>the</strong>r<br />

factors equal.<br />

(b) On-tree revenue is <strong>the</strong> average annual on-tree price <strong>of</strong> all oranges in Florida from 2000 to 2009<br />

in 2010 dollars ($5.26 per box) times <strong>the</strong> average yield per acre <strong>of</strong> all oranges in Florida from<br />

2000 to 2009 (349 boxes per acre). On-tree prices and yields per acre are from Florida Agricultural<br />

Statistics Service, "Citrus Summary 2008-2009", page 18. From page 9 <strong>of</strong> this report, "All<br />

prices ... are on-tree prices representing <strong>the</strong> average price received by growers <strong>for</strong> <strong>the</strong>ir fruit.<br />

The term "on-tree" relates to fruit returns to <strong>the</strong> grower after <strong>the</strong> costs <strong>of</strong> picking, hauling, and<br />

packing have been removed. Prices are based on records <strong>of</strong> commercial fresh fruit sales and<br />

processed fruit returns." Because <strong>the</strong> prices used in <strong>the</strong> table are “on-tree” prices, <strong>the</strong> harvest<br />

and marketing costs are not included in <strong>the</strong> table because <strong>the</strong>y have already been deducted<br />

from <strong>the</strong> price received <strong>for</strong> citrus after it is harvested and marketed.<br />

(c)<br />

These are <strong>the</strong> annual costs that would not be expended if <strong>the</strong> land is not used to produce<br />

oranges.<br />

(d) All costs reported in this table are from Ronald P. Muraro, Extension Economist, "Summary <strong>of</strong><br />

2009-2010 Citrus Budget <strong>for</strong> <strong>the</strong> Southwest Florida Production Region", University <strong>of</strong> Florida,<br />

IFAS, CREC, Lake Alfred, Florida, 2010, pages 4 and 5. Cost represents a mature (>/= 10 year<br />

old) citrus grove in southwest Florida. The production and cultural cost includes cost <strong>for</strong> repair<br />

<strong>of</strong> machinery and equipment; maintenance; labor; chemicals, and overhead management.<br />

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An estimate <strong>of</strong> <strong>the</strong> net income per acre per year from strawberry production is provided<br />

in Table 4.11. For <strong>the</strong> purposes <strong>of</strong> <strong>the</strong> tailwater recovery cost estimation, it is assumed<br />

that only one crop is produced on <strong>the</strong> land each year. If growers produce more than one<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

crop per year on <strong>the</strong> land that is used to site <strong>the</strong> tailwater pond, <strong>the</strong>n <strong>the</strong> net return per<br />

acre per year will be higher than reported in <strong>the</strong>se tailwater cost estimates. The decision<br />

to use only one crop per year was made because many growers will not need to remove<br />

production on all <strong>of</strong> <strong>the</strong> land where <strong>the</strong> pond would be sited. Thus <strong>the</strong> use <strong>of</strong> one crop<br />

per year is meant to provide a weighted average net income loss that is believed to be<br />

more representative <strong>of</strong> actual conditions and implies that on average 50 percent <strong>of</strong> <strong>the</strong><br />

land used <strong>for</strong> <strong>the</strong> pond would not replace crop production (1 crop = 2 crops x 0.50 <strong>of</strong><br />

crop land is replaced).<br />

Item<br />

Revenue – Price (b)<br />

Table 4.11<br />

<strong>Estimated</strong> Revenue and <strong>Costs</strong> <strong>of</strong> Producing Strawberries<br />

in <strong>Plant</strong> <strong>City</strong>, Florida, 2010 Dollars<br />

Revenue - Yield per acre (b)<br />

Dollars per Farmed<br />

Acre (a)<br />

$15.704 per flat<br />

2,291.8 flats<br />

Revenue lost from not producing $35,991<br />

Variable <strong>Costs</strong> – Avoided <strong>Costs</strong> <strong>of</strong> Not Producing (c)<br />

Operating Cost $9,791<br />

Harvest and Marketing <strong>Costs</strong> $12,834<br />

Total Avoided Cost $22,625<br />

Net Income (Revenue lost from not producing minus<br />

avoided cost <strong>of</strong> not producing)<br />

(a)<br />

(b)<br />

(c)<br />

$13,366<br />

From Scott Smith and Timothy Taylor, "Production <strong>Costs</strong> and Commodity Budgets <strong>for</strong><br />

Selected Florida Vegetables", Department <strong>of</strong> Food and Resource Economics, Florida<br />

Cooperative Extension Service, UF/IFAS, University <strong>of</strong> Florida, Gainesville, Florida,<br />

2008-2009, EDIS document FE436.<br />

Prices and Yields are 5-year averages (2005 to 2009) in 2010 dollars from Florida Agricultural<br />

Statistics Service, Vegetable Summary. Revenue based on 12 pound flats.<br />

These are <strong>the</strong> annual costs that would not be expended if <strong>the</strong> land is not used to produce<br />

strawberries.<br />

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The net income per acre is equal to <strong>the</strong> strawberry revenue minus all variable costs associated<br />

with producing strawberries. Variable costs are <strong>the</strong> costs that increase with increases<br />

in <strong>the</strong> land area planted in strawberries. The cost <strong>of</strong> land is not included in <strong>the</strong><br />

variable cost because <strong>the</strong> land has already been purchased or leased and is <strong>the</strong>re<strong>for</strong>e a<br />

fixed cost. The net income estimate is $13,366 per farmed acre per year. The data<br />

sources used are described in <strong>the</strong> footnotes to this table.<br />

A summary <strong>of</strong> <strong>the</strong> estimated costs per farmed acre associated with a tailwater recovery<br />

system <strong>for</strong> a 10 acre farm, a 25 acre farm, and a 100 acre farm are provided in Tables<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

4.12, 4.13 and 4.14, respectively. These farm sizes are representative <strong>of</strong> those in <strong>the</strong><br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA.<br />

Part II <strong>of</strong> each table provides <strong>the</strong> cost per farmed acre per year <strong>of</strong> a tailwater recovery<br />

system under <strong>the</strong> two pond alternatives: (1) with a below ground pond, and (2) with an<br />

above ground pond. These costs do not include estimates <strong>of</strong> <strong>the</strong> lost revenue associated<br />

with siting <strong>the</strong> pond on land that would o<strong>the</strong>rwise be used <strong>for</strong> crop production. For a ten<br />

acre farm, presented in Table 4.12, <strong>the</strong> cost ranges from $988 per farmed acre per year<br />

to $1,029 per farmed acre per year. The farm acreage denominator does not include <strong>the</strong><br />

pond acreage. So, <strong>for</strong> example, <strong>the</strong> cost <strong>of</strong> a below ground tailwater recovery system per<br />

farmed acre <strong>for</strong> a 10 acre farm uses a farm size <strong>of</strong> 9.04 acres in <strong>the</strong> denominator (10<br />

acres <strong>of</strong> farm minus 0.96 acres <strong>of</strong> pond). This method was used to make it easy to compare<br />

<strong>the</strong> tailwater system costs to net income per farmed acre <strong>for</strong> a specific crop. For a<br />

25 acre farm, presented in Table 4.13, <strong>the</strong> cost ranges from $648 per farmed acre per<br />

year to $750 per farmed acre per year. For a 100 acre farm, presented in Table 4.14, <strong>the</strong><br />

cost ranges from $449 per farmed acre per year to $620 per farmed acre per year.<br />

The estimated lost net income plus <strong>the</strong> cost <strong>of</strong> <strong>the</strong> tailwater recovery system per farmed<br />

acre per year is included in Part III <strong>of</strong> <strong>the</strong> tables. The predominant crops that require<br />

frost / freeze protection in <strong>the</strong> DPC WUCA are citrus and strawberries. The sizes <strong>of</strong> <strong>the</strong><br />

farms that grow citrus and strawberries in <strong>the</strong> DPC WUCA range from 10 to 125 acres.<br />

The lost net incomes from creating a pond on land that would have been used to produce<br />

each <strong>of</strong> <strong>the</strong>se two crop types are included in Tables 4.12 through 4.14.<br />

For a ten acre farm with a tailwater recovery system that removes 0.96 to 1.45 acres <strong>of</strong><br />

productive land, <strong>the</strong> net income loss is $78 to $125, respectively, per farmed acre per<br />

year if citrus trees are removed to site <strong>the</strong> pond and $1,419 to $2,267, respectively, per<br />

farmed acre per year if strawberries are removed to site <strong>the</strong> pond.<br />

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Adding <strong>the</strong> net income loss per farmed acre per year to <strong>the</strong> tailwater recovery system<br />

cost per farmed acre per year provides <strong>the</strong> potential cost associated with using this water<br />

source <strong>for</strong> frost / freeze protection. These total costs are provided in Part III <strong>of</strong> each<br />

table. For a 10 acre farm, presented in Table 4.12, <strong>the</strong> estimated cost is about $1,100<br />

per farmed acre per year <strong>for</strong> citrus and from $2,450 to $3,250 per farmed acre per year<br />

<strong>for</strong> strawberries. For a 25 acre farm, <strong>the</strong> estimated cost is about $800 per farmed acre<br />

per year <strong>for</strong> citrus and from $1,890 to $3,500 per farmed acre per year <strong>for</strong> strawberries.<br />

For a 100 acre farm, <strong>the</strong> estimated cost ranges from $590 to $670 per farmed acre per<br />

year <strong>for</strong> citrus and from $1,500 to $2,995 per farmed acre per year <strong>for</strong> strawberries.<br />

In addition to this cost, <strong>the</strong> grower will incur <strong>the</strong> cost <strong>of</strong> metering withdrawals from <strong>the</strong><br />

tailwater ponds. The estimated metering cost to <strong>the</strong> grower was provided earlier in this<br />

Chapter.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

These costs might be lower if <strong>the</strong> pond depths are increased from 10 feet to 15 feet.<br />

This would result in a pond surface area that is smaller than used in <strong>the</strong> cost estimates<br />

and this could reduce <strong>the</strong> net income losses associated with siting <strong>the</strong> pond on productive<br />

farmland.<br />

The capital costs <strong>of</strong> <strong>the</strong> tailwater recovery system can be significantly reduced if <strong>the</strong><br />

grower qualifies <strong>for</strong> cost-sharing under <strong>the</strong> District’s FARMS program. Existing growers<br />

will not be required to install <strong>the</strong>se systems unless <strong>the</strong> required feasibility analysis demonstrates<br />

that <strong>the</strong>y are economically, technically and environmentally feasible, with or<br />

without FARMS cost-sharing.<br />

Item<br />

Table 4.12<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farmed Acre per Year<br />

Associated with a Tailwater Recovery System <strong>for</strong> a 10 Acre Farm<br />

Crop Type Protected<br />

Citrus Grove<br />

Strawberry<br />

Net income per farmed acre per year (a) $738 $13,366<br />

Pond Surface Acreage – Below Ground Pond 0.96 0.96<br />

Pond Surface Acreage – Above Ground Pond 1.45 1.45<br />

I. Lost Annual Net Income as Pond Replaces Production<br />

Below Ground Pond<br />

Replaced by Pond Acreage $708 $12,831<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $78 $1,419<br />

Above Ground Pond<br />

Replaced by Pond Acreage $1,070 $19,380<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $125 $2,267<br />

II. Annualized Cost <strong>of</strong> Tailwater Recovery System per Farmed Acre per Year<br />

Below Ground Pond $1,029 $1,029<br />

Above Ground Pond $988 $988<br />

III. Annualized Cost <strong>of</strong> Tailwater Recovery System Including Lost Net Income per Farmed<br />

Acre per Year<br />

Below Ground Pond $1,107 $2,448<br />

Above Ground Pond $1,113 $3,254<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.13<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farmed Acre per Year<br />

Associated with a Tailwater Recovery System <strong>for</strong> a 25 Acre Farm<br />

Crop Type Protected<br />

Citrus Grove<br />

Strawberry<br />

Net income per farmed acre per year (a) $738 $13,366<br />

Pond Surface Acreage – Below Ground Pond 1.96 1.96<br />

Pond Surface Acreage – Above Ground Pond 4.40 4.40<br />

I. Lost Annual Net Income as Pond Replaces Production<br />

Below Ground Pond<br />

Replaced by Pond Acreage $1,446 $26,197<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $63 $1,137<br />

Above Ground Pond<br />

Replaced by Pond Acreage $3,247 $58,809<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $158 $2,855<br />

II. Annualized Cost <strong>of</strong> Tailwater Recovery System per Farmed Acre per Year<br />

Below Ground Pond $750 $750<br />

Above Ground Pond $648 $648<br />

III. Annualized Cost <strong>of</strong> Tailwater Recovery System Including Lost Net Income per Farmed<br />

Acre per Year<br />

Below Ground Pond $813 $1,887<br />

Above Ground Pond $806 $3,503<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

Table 4.14<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> per Farmed Acre per Year<br />

Associated with a Tailwater Recovery System <strong>for</strong> a 100 Acre Farm<br />

Crop Type Protected<br />

Citrus Grove<br />

Strawberry<br />

Net income per farmed acre per year (a) $738 $13,366<br />

Pond Surface Acreage – Below Ground Pond 6.20 6.20<br />

Pond Surface Acreage – Above Ground Pond 16.00 16.00<br />

I. Lost Annual Net Income as Pond Replaces Production<br />

Below Ground Pond<br />

Replaced by Pond Acreage $4,576 $82,867<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $49 $883<br />

Above Ground Pond<br />

Replaced by Pond Acreage $11,808 $213,850<br />

Replaced by Pond Acreage per Acre <strong>of</strong> Farm (with pond acreage<br />

removed from denominator) $141 $2,546<br />

II. Annualized Cost <strong>of</strong> Tailwater Recovery System per Farmed Acre per Year<br />

Below Ground Pond $620 $620<br />

Above Ground Pond $449 $449<br />

III. Annualized Cost <strong>of</strong> Tailwater Recovery System Including Lost Net Income per Farmed<br />

Acre per Year<br />

Below Ground Pond $669 $1,503<br />

Above Ground Pond $589 $2,995<br />

Horizontal Wells. For farmland that sits on a perched water table, it may be possible to<br />

obtain water from <strong>the</strong> surficial aquifer using a horizontal well. However, <strong>the</strong> application <strong>of</strong><br />

horizontal well technology may be limited in <strong>the</strong> <strong>Dover</strong> area. A perched water table, also<br />

called a perched aquifer, is one that sits above an impermeable or semi-impermeable<br />

layer between <strong>the</strong> water table and <strong>the</strong> aquifer below. A horizontal well is similar to an<br />

under-drain system except that <strong>the</strong> per<strong>for</strong>ated pipe is deeper. The rate at which water<br />

can be pumped from <strong>the</strong> surficial aquifer will depend on <strong>the</strong> site specific geology. If<br />

pumping from horizontal wells has negative impacts on wetland areas, <strong>the</strong>n District permitting<br />

rules may prevent <strong>the</strong> grower from using this option.<br />

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In <strong>the</strong> event that a horizontal well would provide a sufficient amount <strong>of</strong> water and can be<br />

permitted, <strong>the</strong>n it could be pumped into <strong>the</strong> tailwater recovery pond <strong>for</strong> frost / freeze protection<br />

or it could be pumped directly to <strong>the</strong> supplemental irrigation system. An estimate<br />

<strong>of</strong> <strong>the</strong> cost to install and use a horizontal well is provided in Table 4.15. The estimated<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

annualized capital and O&M costs will depend on <strong>the</strong> amount <strong>of</strong> water that can be<br />

pumped and beneficially used. A range <strong>of</strong> water yield used in this cost estimation is 0.20<br />

gpm per foot <strong>of</strong> well and 1.2 gpm per foot <strong>of</strong> well. If <strong>the</strong> horizontal well is 800 feet and<br />

operated five hours per day <strong>for</strong> eight months per year, <strong>the</strong> annual average daily amount<br />

<strong>of</strong> water pumped would be 32,000 gpd to 192,000 gpd, respectively. The estimated annualized<br />

capital and O&M cost would range from $0.65 to $0.11 per 1,000 gallons <strong>of</strong> water<br />

produced, respectively. In addition to this cost, <strong>the</strong> grower will incur <strong>the</strong> cost <strong>of</strong> metering<br />

withdrawals from <strong>the</strong> horizontal wells. The estimated metering cost to <strong>the</strong> grower<br />

was provided earlier in this Chapter.<br />

The cost to pump water from <strong>the</strong> Floridan aquifer is about $0.24 per 1,000 gallons. 14<br />

Thus. <strong>the</strong> horizontal well cost estimate ranges from one-half to two times <strong>the</strong> cost <strong>of</strong> water<br />

from <strong>the</strong> Floridan aquifer. The grower will also need to monitor <strong>the</strong> impact <strong>of</strong> horizontal<br />

well pumping on <strong>the</strong> water table level to make sure it does not fall below <strong>the</strong> capillary<br />

fringe. 15 If <strong>the</strong> applicant can obtain sufficient water supplies from horizontal wells, this<br />

source may be <strong>the</strong> least expensive <strong>of</strong> <strong>the</strong> alternative frost / freeze protection methods.<br />

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14 From page 5-10 <strong>of</strong> “<strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong> <strong>for</strong> <strong>the</strong> Sou<strong>the</strong>rn Water Use Caution<br />

Area II Rulemaking”, prepared by Hazen and Sawyer <strong>for</strong> <strong>the</strong> Southwest Florida Water Management<br />

District, March 14, 2006, $0.22 per 1,000 gallons, increased by 1.0784 to convert 2006 dollars to<br />

2010 dollars using <strong>the</strong> GDP Implicit Price Deflator.<br />

15 Southwest Florida Water Management District, “Regional Water Supply Plan”, August 2001,<br />

Brooksville, Florida, page 211.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Item<br />

1.0 Capital Cost<br />

Table 4.15<br />

<strong>Estimated</strong> <strong>Costs</strong> <strong>of</strong> a Horizontal Well to Obtain Water<br />

from <strong>the</strong> Surficial Aquifer, 2010 dollars<br />

Unit<br />

Cost per<br />

Unit<br />

Number <strong>of</strong><br />

Units<br />

Total Cost<br />

Horizontal Well (EQIP 642) (a) Linear feet $31.44 800 $25,181<br />

Horizontal Well Pump (EQIP 533) (b) 1 pump $22,033 1 $22,033<br />

Non-Construction Cost (design and<br />

construction management)<br />

% <strong>of</strong> horizontal well<br />

& pump cost<br />

12.00% $47,214 $5,666<br />

Total Capital Cost $52,880<br />

Total Annualized Capital Cost at 5% over<br />

20 years<br />

2.0 Annual O&M Cost<br />

$4,243<br />

Diesel Fuel (c) Hours $2.40 1,217 $2,920<br />

Labor Hours $12.00 40 $480<br />

Total Annual O&M Cost $3,400<br />

Total Annualized Capital and O&M Cost $7,643<br />

3.0 Amount <strong>of</strong> Water Produced per Year Unit<br />

Units /<br />

Minute<br />

Minutes /<br />

Year<br />

Gallons /<br />

Year<br />

High estimate - 1.2 gpm per foot Gallons per Minute 960 73,000 70,080,000<br />

Low estimate - 0.2 gpm per foot Gallons per Minute 160 73,000 11,680,000<br />

Capital and O&M Cost per 1,000 gallons <strong>of</strong> water produced<br />

(a)<br />

(b)<br />

(c)<br />

Low estimate $0.11<br />

High estimate $0.65<br />

From State <strong>of</strong> Florida Area III Cost Share List <strong>for</strong> Selected Conservation Practices <strong>for</strong> EQIP, FY 2007 inflated to<br />

2010 dollars using a factor <strong>of</strong> 1.0492 from U.S. OMB. Includes <strong>the</strong> cost <strong>of</strong> all materials, equipment use and labor<br />

required to install trenching, backfill, horizontal screen (per<strong>for</strong>ated pipe) and filter.<br />

From State <strong>of</strong> Florida Area III Cost Share List <strong>for</strong> Selected Conservation Practices <strong>for</strong> EQIP, FY 2007 inflated to<br />

2010 dollars using a factor <strong>of</strong> 1.0492 from U.S. OMB. Includes <strong>the</strong> cost <strong>of</strong> all materials, equipment use and labor<br />

required to install a horizontal well pump.<br />

Dollars per Hour equal to $2.40 per gallon times 1 gallon per hour times 5 hours <strong>of</strong> irrigation per day <strong>for</strong> 8 months<br />

per year.<br />

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Reclaimed Water. Reclaimed water may be available from wastewater utilities such as<br />

<strong>the</strong> <strong>City</strong> <strong>of</strong> <strong>Plant</strong> <strong>City</strong> and Hillsborough County. The use <strong>of</strong> reclaimed water would be<br />

limited to citrus and nursery crops because <strong>of</strong> food safety issues. The reclaimed water<br />

would be stored on-farm at a cost similar to those estimated <strong>for</strong> <strong>the</strong> tailwater recovery<br />

systems provided previously in this Chapter. The potential cost <strong>of</strong> reclaimed water includes<br />

<strong>the</strong> costs <strong>of</strong> storage, filtration and payments to <strong>the</strong> reclaimed water utility. There<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

are many potential benefits <strong>of</strong> using reclaimed water including freedom from potential<br />

irrigation restrictions, reduced fertilizer costs, and <strong>the</strong> ability to conserve fresh water <strong>for</strong><br />

<strong>the</strong> o<strong>the</strong>r uses.<br />

Current reclaimed water supplies in northwest Hillsborough County are limited 16 but future<br />

reclaimed water expansions might provide sufficient quantities <strong>of</strong> reclaimed water to<br />

agriculture in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area. 17 The <strong>City</strong> <strong>of</strong> <strong>Plant</strong> <strong>City</strong>’s current reclaimed water<br />

rate structure <strong>for</strong> agriculture is a fixed charge from $27 to $50 per month, depending<br />

on meter size, and $0.05 per 1,000 gallons. 18 The average cost <strong>of</strong> future reclaimed water<br />

supplies in northwest Hillsborough County and eastern Polk County is estimated to be<br />

about $2.15 per 1,000 gallons, with estimated future project costs ranging from $0.67 to<br />

$13.18 per 1,000 gallons <strong>of</strong> water produced. 19<br />

4.8 Alternative Frost / Freeze Protection Methods <strong>for</strong> Aquaculture<br />

There are seven tropical fish farms in <strong>the</strong> DPC WUCA with permitted ground water<br />

quantities. Fish farms use diverse production <strong>for</strong>mats. For example, fish ponds can be<br />

indoors, outdoors, semi-enclosed, or a combination <strong>of</strong> <strong>the</strong> three. During cold events,<br />

many fish farms introduce warmer ground water into <strong>the</strong> ponds to protect <strong>the</strong> fish. O<strong>the</strong>rs<br />

use heaters and/or covers to keep <strong>the</strong> ponds warmer.<br />

During cold events where <strong>the</strong> outside temperature drops to about 32 o F or lower, <strong>the</strong> addition<br />

<strong>of</strong> warmer groundwater to <strong>the</strong> fish ponds is necessary in order to protect <strong>the</strong> fish.<br />

The addition <strong>of</strong> groundwater may be necessary even when high tunnels are used depending<br />

on <strong>the</strong> type <strong>of</strong> fish and <strong>the</strong> cold conditions. Some fish are very cold tolerant,<br />

o<strong>the</strong>rs are moderately cold tolerant, and o<strong>the</strong>rs are not cold tolerant. The only alternative<br />

to adding groundwater is to install water heaters that heat <strong>the</strong> pond water. However,<br />

this alternative is very expensive relative to <strong>the</strong> revenue generated from <strong>the</strong> production<br />

<strong>of</strong> most fish species. The highest-valued fish species are typically housed indoors<br />

where heaters are used when needed. The lowest valued fish species are housed in<br />

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16 Florida Department <strong>of</strong> Environmental Protection Reclaimed Water website, “Annual Reuse Inventory,<br />

2009, Appendix D, Reclaimed Water Utilization”, and <strong>the</strong> Hillsborough County website.<br />

17 Southwest Florida Water Management District, Regional Water Supply Plan, DRAFT, April 2010,<br />

Brooksville, Florida, pages 82 to 84 and 96.<br />

18 <strong>City</strong> <strong>of</strong> <strong>Plant</strong> <strong>City</strong> website.<br />

19 <strong>Estimated</strong> costs are from <strong>the</strong> Southwest Florida Water Management District's draft 2010 Regional<br />

Water Supply Plan <strong>for</strong> <strong>the</strong> Tampa Bay Planning Region and <strong>the</strong> Heartland Planning Region, April 20,<br />

2010. The projects selected were those located relatively close to <strong>the</strong> DPC WUCA.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

open ponds and may not be protected from cold because <strong>the</strong>y are cold tolerant or <strong>the</strong><br />

cost <strong>of</strong> cold protection is not economically feasible.<br />

Existing aquaculture operations that use ground water <strong>for</strong> cold protection will be required<br />

to prepare a feasibility study to evaluate <strong>the</strong> economic, technical and environmental feasibility<br />

<strong>of</strong> using alternatives to ground water <strong>for</strong> frost/freeze protection as described previously<br />

in this chapter. The permittee will be required to implement feasible alternatives.<br />

The cost to implement feasible alternatives will vary significantly due to <strong>the</strong> diverse nature<br />

<strong>of</strong> <strong>the</strong> aquaculture operations. The estimated cost <strong>of</strong> using high tunnels to protect<br />

fish ponds was provided in Section 4.6 <strong>of</strong> this Chapter.<br />

Applications <strong>for</strong> new groundwater quantities that impact <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone will need to be adjusted to eliminate this impact. Alternative water sources<br />

may be available to supplement ground water supplies so that at least some <strong>of</strong> <strong>the</strong><br />

needed water during frost / freeze events may be used. These sources include surface<br />

water and <strong>the</strong> surficial aquifer. The cost <strong>of</strong> horizontal wells and tailwater recovery systems<br />

to access and use water from <strong>the</strong>se sources were provided earlier in this Chapter.<br />

If surface water sources are used, additional water filtration may be needed prior to its<br />

introduction into <strong>the</strong> fish ponds.<br />

The applicant may be able to acquire ground water using <strong>the</strong> Net Benefit provision <strong>of</strong> <strong>the</strong><br />

proposed rule. Net Benefit options include obtaining <strong>the</strong> historically used frost / freeze<br />

groundwater quantities that are retired; aquifer recharge; or obtaining groundwater mitigation<br />

credits as described in <strong>the</strong> proposed rule.<br />

4.9 Well Complaints and Mitigation<br />

According <strong>the</strong> Part 3 Basis <strong>of</strong> Review <strong>for</strong> <strong>the</strong> Water Use Permit In<strong>for</strong>mation Manual, 6.1<br />

Standard Permit Conditions:<br />

“12. The permittee shall mitigate, to <strong>the</strong> satisfaction <strong>of</strong> <strong>the</strong> District, any<br />

adverse impact to existing legal uses caused by withdrawals. When adverse<br />

impacts occur or are imminent, <strong>the</strong> District shall require <strong>the</strong> permittee<br />

to mitigate <strong>the</strong> impacts. Adverse impacts include:<br />

a. A reduction in water levels which impairs <strong>the</strong> ability <strong>of</strong> a well to produce<br />

water.<br />

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b. Significant reduction in levels or flows in water bodies such as lakes,<br />

impoundments, wetlands, springs, streams or o<strong>the</strong>r watercourses.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

c. Significant inducement <strong>of</strong> natural or manmade contaminants into a<br />

water supply or into a usable portion <strong>of</strong> an aquifer or water body.”<br />

Under current rule, it is possible <strong>for</strong> a permittee to receive multiple well complaints resulting<br />

from a single frost / freeze event, as was demonstrated in 2010 during and following<br />

<strong>the</strong> 11-day freeze event in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area. According to <strong>the</strong> District, only 61<br />

<strong>of</strong> <strong>the</strong> 504 agricultural permits were assigned well complaints. A majority <strong>of</strong> <strong>the</strong> permits<br />

(86%) did not have well complaints assigned to <strong>the</strong>m under <strong>the</strong> District’s current protocol.<br />

Because a large number <strong>of</strong> complaints was assigned to a small number <strong>of</strong> permittees<br />

and due to <strong>the</strong> slow pace <strong>of</strong> mitigation activity, <strong>the</strong> proposed rule provides a different<br />

method <strong>of</strong> assigning well complaints. The proposed method more closely links permittee<br />

pumping activity to well impacts and distributes <strong>the</strong> cost <strong>of</strong> well impacts more<br />

evenly among those causing <strong>the</strong> impacts.<br />

Relative to current rule, this change in <strong>the</strong> method to allocate well complaints among<br />

permittees is expected to result in <strong>the</strong> same number or more permittees being assigned<br />

well complaints and ei<strong>the</strong>r no change or a reduction in <strong>the</strong> average number <strong>of</strong> well complaints<br />

per permittee. There is no particular cost increase associated with this proposed<br />

rule change. Depending on <strong>the</strong> frost / freeze event, some permittees who would not<br />

have been assigned a well complaint under current rule might be assigned a well complaint<br />

under <strong>the</strong> proposed rule. O<strong>the</strong>r permittees who would have been assigned multiple<br />

well complaints under current rule might be assigned fewer well complaints under<br />

<strong>the</strong> proposed rule. In general, <strong>the</strong> new methodology will reduce <strong>the</strong> chance that a permittee<br />

would be assigned a large number <strong>of</strong> well investigations as occurred during <strong>the</strong><br />

2010 freeze event.<br />

The mitigation activity required by <strong>the</strong> permittee and <strong>the</strong> complainant under <strong>the</strong> proposed<br />

rule is, <strong>for</strong> <strong>the</strong> most part, <strong>the</strong> same as under current rule. One difference is that, under<br />

<strong>the</strong> proposed rule, if a complainant mitigates <strong>the</strong> well damage be<strong>for</strong>e <strong>the</strong> permittee investigates,<br />

<strong>the</strong>n <strong>the</strong> permittee is required to reimburse <strong>the</strong> complainant unless <strong>the</strong> permittee<br />

can demonstrate that it is not responsible <strong>for</strong> all or part <strong>of</strong> <strong>the</strong> cost.<br />

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4.10 Hourly Salary, Benefits and Overhead<br />

An estimate <strong>of</strong> <strong>the</strong> hourly salary, benefits and overhead was used to estimate <strong>the</strong> costs<br />

<strong>of</strong> some rule provisions. The calculation <strong>of</strong> <strong>the</strong>se hourly costs is provided in Table 4.16.<br />

The primary data source was <strong>the</strong> 2002 Economic Census <strong>for</strong> Florida prepared by <strong>the</strong><br />

U.S. Census Bureau.<br />

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4.0 TRANSACTIONAL COSTS JANUARY 2011<br />

Sector<br />

Water Utilities<br />

Table 4.16<br />

Hourly Salary and Wage Rates used to Estimate Transactional <strong>Costs</strong> (a)<br />

Water Use<br />

Category<br />

Public<br />

Supply<br />

Manufacturing Industrial /<br />

Commercial<br />

Non-Metallic<br />

Mineral Mining<br />

and Quarrying<br />

Golf Courses &<br />

Country Clubs<br />

Consultants<br />

Engineering & Related<br />

Services<br />

Mining /<br />

Dewatering<br />

Recreation<br />

/ Aes<strong>the</strong>tic<br />

Annual Payroll<br />

in $<br />

2002 2010<br />

Paid<br />

Employees<br />

Hourly<br />

Salary (b)<br />

Hourly<br />

Salary (c)<br />

Hourly Salary,<br />

Benefits and<br />

Overhead (d)<br />

$63,390,000 1,978 $17.42 $23.84 $72<br />

$14,082,395,000 377,137 $20.29 $27.77 $83<br />

$211,245,000 5,054 $22.72 $31.09 $93<br />

$665,608,000 34,089 $10.61 $14.52 $44<br />

$3,521,571,000 72,942 $26.24 $35.91 $108<br />

Computer Systems $2,854,747,000 49,094 $31.60 $43.25 $130<br />

Management $1,864,386,000 41,423 $24.46 $33.48 $100<br />

Agriculture - all hired workers $11.00 $16.50<br />

Median <strong>of</strong> all Sectors $88<br />

Engineering, Senior $200<br />

Economist, Senior $175<br />

(a)<br />

These are average salaries <strong>for</strong> <strong>the</strong> industries indicated. Actual labor costs will vary depending on <strong>the</strong> salaries <strong>of</strong> those<br />

who provide <strong>the</strong> services. For all sectors except agriculture, data source is 2002 Economic Census <strong>for</strong> Florida:<br />

www.census.gov. For agriculture, farm wage data from USDA, National Agricultural Statistics Service, Farm Wage Data,<br />

Florida Farm Labor, February 24, 2009 and o<strong>the</strong>r USDA data: http://www.nass.usda.<br />

gov/Statistics_by_State/Florida/Publications/Economics/index.asp. The hourly salary, benefits and overhead <strong>for</strong> a Senior<br />

Engineer and a Senior Economist that would be required <strong>for</strong> some services is estimated from in-house sources.<br />

(b) Hourly salary is based on 2,080 hours <strong>of</strong> full time employment minus three weeks <strong>of</strong> paid vacation (120 hours),minus 11<br />

paid holidays minus 32 hours <strong>of</strong> sick leave or 1,840 working hours.<br />

(c) The 2010 hourly salary is equal to <strong>the</strong> 2002 hourly salary increased by 4 percent per year over 8 years (1.04)8.<br />

(d)<br />

For all sectors except agriculture, <strong>the</strong> salary multiplier is 3.0 to account <strong>for</strong> salary, employee benefits, and overhead. For<br />

agriculture, <strong>the</strong> salary multiplier is 1.5 to account <strong>for</strong> salary and benefits.<br />

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HAZEN AND SAWYER, P.C.


Chapter 5.0<br />

Impacts to Small Businesses,<br />

Small Cities and Small Counties<br />

In accordance with Section 120.54(3)(b)2.a, Fla. Stat., <strong>the</strong> District is required to consider<br />

<strong>the</strong> impact <strong>of</strong> its rules on small businesses, small cities, and small counties. Small business<br />

is defined in Section 288.703(1), Fla. Stat., as “an independently owned and oper-<br />

ated business concern employing 200 or fewer permanent full-time employees and that,<br />

toge<strong>the</strong>r with its affiliates, has a net worth <strong>of</strong> not more than $5 million or any firm based<br />

in this state which has a Small Business Administration (SBA) 8(a) certification”. Small<br />

city is defined in Section 120.52(18), Fla. Stat., as “any municipality that has an unincar-<br />

cerated population <strong>of</strong> 10,000 or less according to <strong>the</strong> most recent decennial census”. A<br />

small county is defined in Section 120.52(19), Fla. Stat., as “any county that has an unincarcerated<br />

population <strong>of</strong> 75,000 or less according to <strong>the</strong> most recent decennial cen-<br />

sus”.<br />

According to Section 120.54, Florida Statutes, “Whenever practicable, an agency shall<br />

tier its rules to reduce disproportionate impacts on small businesses, small cities or small<br />

counties to avoid regulating businesses, small counties or small cities that do not contri-<br />

bute significantly to <strong>the</strong> problem <strong>the</strong> rule is designed to address.”<br />

In 2008, <strong>the</strong> most recent year <strong>for</strong> which data are available, <strong>the</strong>re were about 5,941 business<br />

establishments in or near <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA with 200 or fewer em-<br />

ployees according to data from <strong>the</strong> U.S. Census as presented in Table 5.1. The total<br />

number <strong>of</strong> business establishments was 5,990. Thus, as much as 99 percent <strong>of</strong> busi-<br />

ness establishments in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA may be “small businesses” as de-<br />

fined by Florida Statute. According to <strong>the</strong> U.S. Census, an establishment is a single<br />

physical location where business is conducted, or where services are per<strong>for</strong>med. While<br />

this definition is not identical to <strong>the</strong> definition provided in Florida Statutes, it provides a<br />

generaleral idea <strong>of</strong> <strong>the</strong> extent <strong>of</strong> small businesses in <strong>the</strong> DPC WUCA.<br />

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PAGE 5-1<br />

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5.0 IMPACTS TO SMALL BUSINESSES, SMALL CITIES AND SMALL COUNTIES JANUARY 2011<br />

Table 5.1<br />

Number <strong>of</strong> Establishments In or Near <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong><br />

WUCA by Employee Size Class<br />

Employee Size Class<br />

Number <strong>of</strong><br />

Establishments<br />

% <strong>of</strong> All<br />

Establishments<br />

1 to 200 Employees 5,941 99%<br />

Greater than 200 Employees 49 1%<br />

Total 5,990 100%<br />

Source: U.S. Census, 2008, County Business Patterns, Zip Code Business Patterns by<br />

Employment Size Class in 2008. Based on zip codes. Many zip codes include areas<br />

outside <strong>of</strong> <strong>the</strong> DPC WUCA.<br />

There are no small counties or small cities in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> WUCA, as identified<br />

using data from <strong>the</strong> University <strong>of</strong> Florida Bureau <strong>of</strong> Economic and Business Research.<br />

There are several unincorporated census designated places in <strong>the</strong> <strong>Dover</strong> /<strong>Plant</strong> <strong>City</strong><br />

WUCA. The populations <strong>of</strong> counties, cities and unincorporated census designated places<br />

in this WUCA are listed in Table 5.2. There are no small cities or small counties immediately<br />

outside <strong>the</strong> DPC WUCA.<br />

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Table 5.2<br />

Population <strong>of</strong> Counties that Comprise <strong>the</strong> DPC WUCA and <strong>the</strong> Cities and<br />

Unincorporated Census Designated Places In <strong>the</strong> DPC WUCA<br />

Geographic Area<br />

Population<br />

2008 2000<br />

Hillsborough County 1,200,541 998,948<br />

<strong>City</strong> <strong>of</strong> <strong>Plant</strong> <strong>City</strong> 33,500 29,760<br />

Unincorporated Census Designated Places:<br />

<strong>Dover</strong> N/A 2,798<br />

Valrico N/A 6,582<br />

Bloomingdale 19,434 19,839<br />

Polk County 585,733 483,924<br />

Unincorporated Census Designated Places:<br />

Willow Oak N/A 4,917<br />

Winston N/A 9,024<br />

Kathleen N/A 3,280<br />

Source: U.S. Census, American Factfinder, www.factfinder.census.gov<br />

N/A means that <strong>the</strong> in<strong>for</strong>mation is not available.<br />

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5.0 IMPACTS TO SMALL BUSINESSES, SMALL CITIES AND SMALL COUNTIES JANUARY 2011<br />

The proposed rule is not expected to incur costs to small businesses, small cities or<br />

small counties unless it is a water use permittee in <strong>the</strong> DPC WUCA; or requests a water<br />

use permit <strong>for</strong> frost / freeze protection in <strong>the</strong> DPC WUCA; or is outside <strong>the</strong> DPC WUCA<br />

and requests a groundwater quantity <strong>for</strong> frost / freeze protection that impacts <strong>the</strong> Protection<br />

Zone. In <strong>the</strong> event that a small business, small city or small county must comply<br />

with <strong>the</strong> proposed rule, <strong>the</strong> potential transactional costs are provided in Chapter 4.0 <strong>of</strong><br />

this <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong>.<br />

Fur<strong>the</strong>rmore, small businesses, small counties and small cities that are not required to<br />

obtain a water use permit to conduct <strong>the</strong>ir water use activities are not required to comply<br />

with <strong>the</strong> proposed rule or incur <strong>the</strong> costs associated with <strong>the</strong> proposed rule. According to<br />

Chapter 40D-2, F.A.C., Consumptive Use <strong>of</strong> Water, a water use permit (WUP) from <strong>the</strong><br />

Southwest Florida Water Management District is required as follows.<br />

40D-2.041 Permits Required.<br />

1. Unless expressly exempted by law or District rule, a WUP must be obtained<br />

from <strong>the</strong> District prior to withdrawal <strong>of</strong> water if any <strong>of</strong> <strong>the</strong> following thresholds are<br />

exceeded:<br />

a. Total withdrawal capacity from any source or combined sources is greater<br />

than or equal to 1,000,000 gallons per day (gpd).<br />

b. Annual average daily withdrawal from any source or combined sources is<br />

greater than or equal to 100,000 gpd.<br />

c. Withdrawal is from a well having an outside diameter <strong>of</strong> 6 inches or more at<br />

<strong>the</strong> surface.<br />

d. Withdrawal is from a surface water body and <strong>the</strong> outside diameter <strong>of</strong> <strong>the</strong><br />

withdrawal pipe or <strong>the</strong> sum <strong>of</strong> <strong>the</strong> outside diameters <strong>of</strong> <strong>the</strong> withdrawal pipes<br />

is 4 inches or greater.<br />

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e. In addition to <strong>the</strong> thresholds set <strong>for</strong>th in paragraphs (1)(a) through (1)(d)<br />

above, a permit is required within <strong>the</strong> MIA as set <strong>for</strong>th in subparagraph 40D-<br />

2.801(3)(b)2., F.A.C., when withdrawal is from wells having a cumulative<br />

outside diameter greater than 6 inches at <strong>the</strong> surface any <strong>of</strong> which wells is<br />

constructed after April 11, 1994. This paragraph (e) shall not apply to any<br />

proposed well less than 6 inches in diameter at <strong>the</strong> surface when it is <strong>of</strong> <strong>the</strong><br />

same diameter or smaller than a well it replaces and an application to plug<br />

<strong>the</strong> replaced well in accordance with Rule 40D-3.531, F.A.C., is filed with<br />

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HAZEN AND SAWYER, P.C.


5.0 IMPACTS TO SMALL BUSINESSES, SMALL CITIES AND SMALL COUNTIES JANUARY 2011<br />

<strong>the</strong> application to construct <strong>the</strong> replacement well in accordance with Rule<br />

40D-3.041, F.A.C.<br />

Small businesses, cities and counties that obtain water from a private well or from a surface<br />

water source are not required to have a water use permit as long as <strong>the</strong>y do not<br />

meet <strong>the</strong> criteria listed in 40D-2.041, F.A.C., Permits Required, as reprinted above and<br />

will not be required to comply with <strong>the</strong> proposed rule.<br />

In accordance with Section 120.54 (3) (b) 2.a., F.S., <strong>the</strong> District made revisions to <strong>the</strong><br />

proposed rule to reduce adverse impacts to small businesses. First, <strong>the</strong> proposed rule<br />

requirement that permittees are responsible <strong>for</strong> <strong>the</strong> operation, maintenance and replacement<br />

<strong>of</strong> <strong>the</strong> required automatic reading devices was eliminated. The District will<br />

now bear those costs. The vast majority <strong>of</strong> permittees who would have borne those<br />

costs are small businesses. Second, <strong>the</strong> proposed rule requirement that permittees with<br />

permitted ground water quantities <strong>for</strong> frost/freeze protection be required to conduct feasibility<br />

analyses <strong>of</strong> alternative means <strong>of</strong> frost/freeze protection was modified. It now excludes<br />

those permittees with less than 100,000 gallons per day annual average daily<br />

permitted quantity. The vast majority <strong>of</strong> <strong>the</strong> permittees that will not have to pay <strong>for</strong> such<br />

analyses are small businesses.<br />

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HAZEN AND SAWYER, P.C.


Chapter 6.0<br />

Overall <strong>Regulatory</strong> Cost and Economic Impact<br />

The Chapter addresses additional requirements <strong>of</strong> <strong>the</strong> <strong>Statement</strong> <strong>of</strong> <strong>Estimated</strong> Regulato-<br />

ry <strong>Costs</strong> as passed by <strong>the</strong> Florida Legislature in November 2010. According to House<br />

Bill 1565, in addition to <strong>the</strong> requirements listed in Chapter 120.54, F.S., a <strong>Statement</strong> <strong>of</strong><br />

<strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong> shall include:<br />

(a) An economic analysis showing whe<strong>the</strong>r <strong>the</strong> rule directly or indirectly:<br />

1. Is likely to have an adverse impact on economic growth, private-sector job<br />

creation or employment, or private sector investment in excess<br />

<strong>of</strong> $1 million<br />

in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule;<br />

2. Is likely to have an adverse impact on business competitiveness, including<br />

<strong>the</strong> ability <strong>of</strong> persons doing business in <strong>the</strong> state to compete with persons<br />

doing business in o<strong>the</strong>r states or domestic markets, productivity, or innovation<br />

in excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years after <strong>the</strong> imple-<br />

mentationn <strong>of</strong> <strong>the</strong> rule; or<br />

3. Is likely to increase regulatory costs, including any transactional costs, in<br />

excess <strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation<br />

<strong>of</strong> <strong>the</strong> rule.<br />

This Chapter <strong>of</strong> <strong>the</strong> SERC addresses <strong>the</strong>se requirements in <strong>the</strong> following order.<br />

1. Total estimated regulatory costs within 5 years after rule implementation.<br />

2. Potential impact on economic growth, private sector job creation and private sec-<br />

tor investment.<br />

3. Potential impact on business competitiveness, productivity or innovation.<br />

44324-000R4.docx<br />

In preparing this SERC, care was taken to identify direct and indirect costs.<br />

Indirect<br />

costs that were identified are <strong>the</strong> overhead costs and <strong>the</strong> cost to obtain o<strong>the</strong>r permits.<br />

<strong>Costs</strong> associated with labor activities such as completing District <strong>for</strong>ms were based on<br />

an hourly labor cost where salary, benefits and overhead costs are included. Activities<br />

conducted in compliance with <strong>the</strong> proposed rule that would require o<strong>the</strong>r types <strong>of</strong> permits<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE 6-1<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

from <strong>the</strong> District or permits from o<strong>the</strong>r agencies are associated with <strong>the</strong> construction <strong>of</strong><br />

tailwater recovery ponds as described in chapter 4.0 <strong>of</strong> this SERC. In <strong>the</strong> case <strong>of</strong> sales<br />

and employment, indirect impacts might be felt by industries that provide goods and services<br />

to <strong>the</strong> regulated industries. As discussed in this Chapter, <strong>the</strong> proposed rule is not<br />

expected to result in significant indirect impacts to o<strong>the</strong>r industries.<br />

6.1 Total <strong>Estimated</strong> <strong>Regulatory</strong> <strong>Costs</strong><br />

The total estimated regulatory costs to individuals and entities required to comply with<br />

<strong>the</strong> DPC WUCA Rule is estimated to be $400,200 within <strong>the</strong> 5 years after rule implementation.<br />

This cost is net <strong>of</strong> <strong>the</strong> estimated cost savings associated with current rule requirements<br />

that would not be required <strong>of</strong> permittees under <strong>the</strong> proposed DPC WUCA<br />

Rule. These estimated costs are based on <strong>the</strong> costs reported in chapter 4.0 Transactional<br />

<strong>Costs</strong>. The estimated transactional costs are summarized in Table 6.1 and are<br />

from chapter 4.0. These one-time and annual costs were applied to estimates <strong>of</strong> <strong>the</strong><br />

numbers <strong>of</strong> existing and new water use permittees that would be required to comply with<br />

each rule component as summarized in Table 6.2.<br />

Each row <strong>of</strong> Table 6.2 represents a DPC WUCA Rule requirement. The calculation <strong>of</strong><br />

<strong>the</strong> total cost over 5 years, which is presented in Column (7) <strong>of</strong> Table 6.2, is provided as<br />

follows. The numbers <strong>of</strong> existing permittees, new applicants, existing water withdrawal<br />

sites, and new withdrawal sites used in this cost estimation were obtained from District<br />

application and permit records in <strong>the</strong> DPC WUCA. These numbers reflect <strong>the</strong> criteria<br />

associated with each rule requirement.<br />

44324-000R4.docx<br />

1. Increase in permit fee as Existing Small General permittees renew and become<br />

General permitees – Because <strong>the</strong> proposed rule requires permittees with<br />

uses requiring frost / freeze protection to meter all withdrawal quantities, <strong>the</strong> permit<br />

classification <strong>for</strong> <strong>the</strong>se permittees that have a Small General water use permit will<br />

change to a General permit. Small General permits typically qualify <strong>for</strong> a 20 year<br />

permit under current rule whereas General permits can be issued <strong>for</strong> 20 years only<br />

under certain conditions. These permittees will still complete <strong>the</strong> simpler Small General<br />

Water Use Permit Application but <strong>the</strong>ir permits will be issued as General Permits.<br />

As such, <strong>the</strong>y will not be required to implement certain activities required <strong>of</strong><br />

General Permits, such as submitting a water conservation plan. However, <strong>the</strong>y will<br />

be required to pay <strong>the</strong> higher General permit renewal fee. In addition, <strong>the</strong>ir permit<br />

durations would extend 10 years, not <strong>the</strong> current 20 years, so <strong>the</strong>y would need to renew<br />

<strong>the</strong>ir permits more frequently. The permit fee <strong>for</strong> a renewing a Small General<br />

permit no greater than 20 years in duration is $70. The permit fee <strong>for</strong> renewing a<br />

General permit no greater than 10 years in duration is $185. There<strong>for</strong>e, <strong>the</strong> additional<br />

permit fee is $115 at permit renewal.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-2<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.1<br />

Summary <strong>of</strong> <strong>Estimated</strong> <strong>Costs</strong> Associated with Forms, Metering, Data Collection and<br />

Feasibility Analysis <strong>of</strong> Proposed DPC WUCA Rule<br />

One-Time Labor or Purchase<br />

/ Installation Cost<br />

Activity Associated with Proposed<br />

Rule<br />

Conditions When Compliance<br />

Required<br />

Low<br />

Mid-<br />

Point<br />

High<br />

Annual<br />

O&M<br />

Cost<br />

Increase in permit fee as<br />

Small General permittees renew<br />

and become General<br />

permittees<br />

Increase in permit fee as new<br />

Small General applicants apply<br />

as General permittees<br />

Complete DPC WUCA Supplemental<br />

Application Form<br />

Existing Small General Permits<br />

in DPC WUCA typically using f/f<br />

protection $115 $115 $115 $0<br />

New applications submitted <strong>for</strong><br />

uses typically using f/f protection<br />

by those who are Small General<br />

permits under current rule $150 $150 $150 $0<br />

All permit applications in DPC<br />

WUCA $700 $1,450 $2,200 $0<br />

Complete Net Benefit Form If applicant proposes net benefit $700 $1,450 $2,200 $0<br />

Complete Water Replacement<br />

Credit Application<br />

Flow meter installation and<br />

maintenance<br />

Flow meter maintenance<br />

Manual reporting <strong>of</strong> flow meter<br />

data to District 12 times per<br />

year<br />

If applicant proposes water replacement<br />

credits $700 $1,450 $2,200 $0<br />

New applications in DPC WUCA<br />

submitted after rule date typically<br />

using f/f protection or average<br />

quanitiy >/= 100,000 gpd $1,700 $2,892 $4,084 $46<br />

Existing permits in DPC WUCA<br />

using f/f protection or average<br />

quantity >/= 100,000 gpd $0 $0 $0 $46<br />

Permittees inside DPC WUCA<br />

and outside <strong>the</strong> NTB WUCA and<br />

SWUCA with at least 100,000<br />

gpd permitted quantity and no<br />

frost / freeze protection quantities $0 $0 $0 $1,056<br />

44324-000R4.docx<br />

Feasibility analysis <strong>of</strong> frost /<br />

freeze protection methods<br />

o<strong>the</strong>r than water<br />

(a) MALPZ stands <strong>for</strong> Minimum Aquifer Level Protection Zone.<br />

Uses that typically require f/f protection<br />

inside <strong>the</strong> DPC WUCA or<br />

outside if impact to MALPZ (a) $4,320 $4,320 $4,320 $0<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-3<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.2<br />

Summary <strong>of</strong> <strong>Estimated</strong> Total <strong>Regulatory</strong> <strong>Costs</strong> Associated with <strong>the</strong> Proposed DPC WUCA Rule (a)<br />

Activity Associated<br />

with Proposed Rule<br />

Units<br />

One-Time<br />

Cost Per<br />

Unit<br />

Annual<br />

O&M Cost<br />

per Unit<br />

Annual<br />

Number <strong>of</strong><br />

Units<br />

Total Cost<br />

Per Year<br />

Total Cost<br />

Over 5<br />

Years<br />

(1) (2) (3) (4) (5) (6) (7)<br />

Increase in permit fee<br />

as existing Small<br />

General permits are<br />

renewed and become<br />

General permits<br />

Increase in permit fee<br />

as new Small General<br />

applicants apply as<br />

General permittees<br />

Complete DPC WU-<br />

CA Supplemental<br />

Application Form<br />

Complete Net Benefit<br />

Form<br />

Complete Water Replacement<br />

Credit<br />

Application<br />

Flow meter purchase,<br />

installation and maintenance<br />

Flow meter maintenance<br />

44324-000R4.docx<br />

Manual reporting <strong>of</strong><br />

flow meter data to<br />

District<br />

Number <strong>of</strong> Existing Small<br />

General Permits in DPC<br />

WUCA typically using f/f<br />

protection assuming that an<br />

equal number <strong>of</strong> permits<br />

come in <strong>for</strong> renewal each<br />

year over 10 years<br />

Average annual number <strong>of</strong><br />

new applications that typically<br />

use f/f protection and<br />

that are Small General<br />

Permits under current rule<br />

Average annual number <strong>of</strong><br />

new applications in <strong>the</strong><br />

DPC WUCA not in <strong>the</strong><br />

SWUCA<br />

Number <strong>of</strong> existing permits<br />

in <strong>the</strong> DPC WUCA not in<br />

<strong>the</strong> SWUCA assuming that<br />

an equal number <strong>of</strong> permits<br />

come in <strong>for</strong> renewal each<br />

year over 10 years<br />

If applicant proposes a net<br />

benefit<br />

If applicant proposes water<br />

replacement credits<br />

Average annual number <strong>of</strong><br />

new withdrawal sites in<br />

DPC WUCA typically using<br />

f/f protection or average<br />

quantity <strong>of</strong> at least 100,000<br />

gpd and not in WUCA<br />

Number <strong>of</strong> existing permits<br />

in DPC WUCA needing f/f<br />

protection or average quantity<br />

<strong>of</strong> at least 100,000 gpd<br />

Number <strong>of</strong> existing permits<br />

not in a current WUCA with<br />

average quantity <strong>of</strong> at least<br />

100,000 gpd and no frost /<br />

freeze quantities<br />

$115 $0 40.6 $4,669 $23,345<br />

$150 $0 4.30 $644 $3,222<br />

$1,450 $0<br />

4.15 $6,020 $30,100<br />

58.3 $84,535 $422,675<br />

$1,450 $0 NA (b) NA NA<br />

$1,450 $0 NA (b) NA NA<br />

$2,892 5.77 $16,683 $83,417<br />

$46 5.77 $796 (c) $3,980 (c)<br />

$0 $46 205 $9,415 $47,074<br />

$0 $1,056 1 $1,056 $5,280<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-4<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.2<br />

Summary <strong>of</strong> <strong>Estimated</strong> Total <strong>Regulatory</strong> <strong>Costs</strong> Associated with <strong>the</strong> Proposed DPC WUCA Rule (a)<br />

Activity Associated<br />

with Proposed Rule<br />

Units<br />

One-Time<br />

Cost Per<br />

Unit<br />

Annual<br />

O&M Cost<br />

per Unit<br />

Annual<br />

Number <strong>of</strong><br />

Units<br />

Total Cost<br />

Per Year<br />

Total Cost<br />

Over 5<br />

Years<br />

(1) (2) (3) (4) (5) (6) (7)<br />

Feasibility analysis <strong>of</strong><br />

frost / freeze protection<br />

methods o<strong>the</strong>r<br />

than water<br />

Number <strong>of</strong> permits in DPC<br />

WUCA with at least<br />

100,000 gpd <strong>for</strong> uses that<br />

typically use f/f protection<br />

assuming that an equal<br />

number <strong>of</strong> permits come in<br />

<strong>for</strong> renewal each year over<br />

10 years<br />

$4,320 $0 10.4 $44,928 $224,640<br />

Total Cost be<strong>for</strong>e Cost-Savings Deducted $168,747 $843,733<br />

Subtract cost-savings to General permittees from<br />

not needing to manually report water flow meter<br />

data to District <strong>for</strong> permittees required to report<br />

pumpage under current rule because <strong>the</strong>y are located<br />

in <strong>the</strong> SWUCA or <strong>the</strong> NTB-WUCA<br />

$0 $1,056 84 -$88,704 -$443,520<br />

Net Cost <strong>of</strong> DPC WUCA Rule to Water Use Permittees $80,043 $400,213<br />

(a) Does not include <strong>the</strong> cost <strong>of</strong> <strong>the</strong> DPC WUCA Rule to <strong>the</strong> Southwest Florida Water Management District.<br />

(b) The Net Benefit <strong>for</strong>m and <strong>the</strong> Water Replacement Credit application would be completed if <strong>the</strong>y provide a positive<br />

net benefit to <strong>the</strong> applicant.<br />

(c) See explanation in text regarding how this cost was calculated.<br />

There are about 406 existing Small General permits that typically require frost /<br />

freeze protection. Assuming that an equal number <strong>of</strong> permits is renewed each year<br />

over a 10 year period, <strong>the</strong>n <strong>the</strong> annual number <strong>of</strong> existing small general permits renewed<br />

is 40.6. To obtain a total cost to all affected permittees per year, <strong>the</strong> $115 was<br />

multiplied by 40.6. The total cost per year is estimated to be $4,669 and <strong>the</strong> 5-year<br />

cost is estimated to be $23,345.<br />

44324-000R4.docx<br />

2. Increase in permit fee as new Small General applicants apply as General permittees<br />

– New applicants <strong>for</strong> ground water in <strong>the</strong> DPC WUCA <strong>for</strong> uses that typically<br />

require frost / freeze protection that would have been issued Small General permits<br />

under current rule will, instead, be issued General permits under <strong>the</strong> proposed rule.<br />

These applicants will still need to complete <strong>the</strong> simpler Small General Water Use<br />

Permit Application, as under current rule, but <strong>the</strong>ir permits would be issued as General<br />

Permits. As such, <strong>the</strong>y will not be required to implement certain activities required<br />

<strong>of</strong> General Permits, such as submitting a water conservation plan. However,<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-5<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

<strong>the</strong>y will be required to pay <strong>the</strong> higher new General permit fee. The permit fee <strong>for</strong> a<br />

new Small General permit no greater than 20 years in duration is $100. The permit<br />

fee <strong>for</strong> a new General permit no greater than 10 years in duration is $250. Thus, <strong>the</strong><br />

additional fee at permit application will be $150 higher under <strong>the</strong> proposed rule.<br />

To obtain an estimated total annual cost to all affected permittees, this $150 was<br />

multiplied by <strong>the</strong> estimated 4.30 average annual number <strong>of</strong> new applicants requesting<br />

permitted water quantities <strong>for</strong> a use that typically requires frost / freeze protection.<br />

The total cost per year is estimated to be $644 and <strong>the</strong> 5-year cost is estimated<br />

to be $3,222.<br />

3. Complete DPC WUCA Supplemental Application Form – All new applicants and<br />

renewing permittees in <strong>the</strong> DPC WUCA will need to complete and submit this new<br />

supplemental <strong>for</strong>m. All applicants and permittees in <strong>the</strong> SWUCA are required to<br />

complete this same <strong>for</strong>m under current rule. The estimated labor cost to complete<br />

this <strong>for</strong>m is estimated to range from $700 to $2,200 depending on <strong>the</strong> complexity <strong>of</strong><br />

<strong>the</strong> application. The midpoint cost <strong>of</strong> $1,450 was used to estimate <strong>the</strong> total cost to all<br />

permittees and applicants.<br />

To estimate an average annual cost <strong>for</strong> new water use permit applicants, <strong>the</strong> $1,450<br />

was multiplied by <strong>the</strong> 4.15 average annual number <strong>of</strong> new applicants in <strong>the</strong> DPC<br />

WUCA outside <strong>of</strong> <strong>the</strong> SWUCA. This average annual cost is $6,020. Over five years,<br />

this cost totals $30,100.<br />

At permit renewal, about 583 existing permittees in <strong>the</strong> DPC WUCA will be required<br />

to complete this <strong>for</strong>m. These permittees are those that are not located in <strong>the</strong> SWU-<br />

CA because permittees in <strong>the</strong> SWUCA are required to fill out this <strong>for</strong>m under current<br />

rule. Assuming that an equal number <strong>of</strong> permits is renewed each year over a 10<br />

year period, <strong>the</strong>n <strong>the</strong> annual number <strong>of</strong> existing permits renewed is 58.3. The total<br />

annual cost to <strong>the</strong>se permittees was estimated as <strong>the</strong> $1,450 cost per application<br />

times <strong>the</strong> 58.3 existing permittees. This annual cost is $84,535. Over five years, this<br />

cost totals $422,675.<br />

44324-000R4.docx<br />

Completing <strong>the</strong> Net Benefit <strong>for</strong>m or <strong>the</strong> Water Replacement Credit application provides<br />

an opportunity <strong>for</strong> <strong>the</strong> applicant to obtain a permit <strong>for</strong> new ground water quantities<br />

<strong>for</strong> frost / freeze protection. It is not known how many applicants and permittees<br />

will fill out <strong>the</strong>se <strong>for</strong>ms over <strong>the</strong> next five years. For <strong>the</strong>se reasons, a cost to complete<br />

<strong>the</strong>se <strong>for</strong>ms was not estimated.<br />

4. New Applicant Purchase and Installation <strong>of</strong> Flow Meters – New applications <strong>for</strong> a<br />

water use permit in <strong>the</strong> DPC WUCA with uses that typically require frost / freeze protection<br />

or permitted quantities <strong>of</strong> at least 100,000 gpd will be required to purchase<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-6<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

and install a flow meter on each water withdrawal point. Under current rule, permittees<br />

with at least 100,000 gpd average daily permitted quantity and in <strong>the</strong> SWUCA or<br />

NTB-WUCA are required to purchase and install flow meters.<br />

The estimated purchase and installation cost ranges from $1,700 to $4,084 per meter.<br />

The midpoint cost <strong>of</strong> $2,892 per meter was used. The average number <strong>of</strong> withdrawal<br />

sites per permit in <strong>the</strong> DPC WUCA is 2.11. The estimated annual number <strong>of</strong><br />

new permits requiring flow meters was estimated to be 2.73, based on District permit<br />

data in <strong>the</strong> DPC WUCA. Thus, <strong>the</strong> total number <strong>of</strong> new withdrawal sites per year is<br />

estimated to be 5.77 (= 2.11 x 2.73). The average annual cost was estimated as<br />

$2,892 times 5.77 new withdrawal sites. This annual cost is $16,683 and <strong>the</strong> five<br />

year cost is $83,417.<br />

5. Flow Meter Maintenance – Existing and new permittees will need to maintain <strong>the</strong><br />

flow meter. The estimated annual maintenance cost per flow meter is $46. The total<br />

annual maintenance cost <strong>for</strong> new permittees in <strong>the</strong> first year after rule adoption was<br />

estimated as $46 times 5.77 new withdrawal sites per year. In year two, <strong>the</strong> cost is<br />

$46 times 5.77 times two years. In year three, <strong>the</strong> cost is $46 times 5.77 times three<br />

years. In year four, <strong>the</strong> cost is $46 times 5.77 times four years and in year five, <strong>the</strong><br />

cost is $46 times 5.77 times five years. Summing <strong>the</strong>se annual costs over <strong>the</strong> five<br />

years yields a five year cost <strong>of</strong> $3,980. The average annual cost is $796.<br />

For existing permittees, <strong>the</strong> total annual cost was estimated as $46 times <strong>the</strong> number<br />

<strong>of</strong> existing permits in <strong>the</strong> DPC WUCA typically using frost / freeze protection or with<br />

average permitted quantities greater than or equal to 100,000 gpd that are not in <strong>the</strong><br />

SWUCA or <strong>the</strong> NTB WUCA. This number is 205 permittees. Thus <strong>the</strong> total annual<br />

meter maintenance cost is estimated to be $9,415 and <strong>the</strong> five year cost is $47,074.<br />

6. Manual Reporting <strong>of</strong> Flow Meter Data to <strong>the</strong> District – Permittees who are not in<br />

<strong>the</strong> SWUCA or <strong>the</strong> NTB-WUCA with permitted quantities <strong>of</strong> at least 100,000 gpd <strong>for</strong><br />

uses that do not typically require frost / freeze protection will not be required to install<br />

AMR devices. However, <strong>the</strong>se permittees will be required to manually report <strong>the</strong>ir<br />

water withdrawals to <strong>the</strong> District. This reporting cost per year is estimated to be<br />

$1,056. There is currently only one permittee who falls into this category. Thus <strong>the</strong><br />

total annual cost is $1,056 and <strong>the</strong> five year cost is $5,280. Evaluation <strong>of</strong> <strong>the</strong> District’s<br />

water use permit application data over <strong>the</strong> past 10 years found that none <strong>of</strong> <strong>the</strong><br />

permit-approved applicants fell into this category.<br />

44324-000R4.docx<br />

7. Feasibility Analysis <strong>of</strong> Frost / Freeze Protection Methods O<strong>the</strong>r than Water –<br />

Upon permit renewal, certain existing permitees will be required to submit an analysis<br />

<strong>of</strong> frost / freeze protection methods o<strong>the</strong>r than ground water that documents<br />

whe<strong>the</strong>r alternatives are technically, economically, and environmentally feasible.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-7<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

These permittees have at least 100,000 gpd average annual daily permitted quantity<br />

<strong>for</strong> uses that require frost / freeze protection. The cost <strong>of</strong> this analysis will vary depending<br />

on <strong>the</strong> number <strong>of</strong> different crop and fish types that need protection and <strong>the</strong>ir<br />

acreages. For <strong>the</strong> purposes <strong>of</strong> estimating <strong>the</strong> total costs to permittees, a cost per<br />

feasibility analysis is estimated to be $4,320 per permit.<br />

There are about 104 existing permittees who will need to prepare this feasibility<br />

analysis. Assuming that an equal number <strong>of</strong> <strong>the</strong>se permits is renewed each year<br />

over a 10 ten year period, <strong>the</strong> average number <strong>of</strong> permits renewed each year is 10.4.<br />

The total annual cost was estimated as $4,320 times 10.4 permits or $44,928 per<br />

year. The five year cost is estimated to be $224,640.<br />

There are no regulatory costs associated with implementing alternative frost / freeze<br />

protection methods because such methods would only be required if <strong>the</strong>y are technically,<br />

economically and environmentally feasible to <strong>the</strong> permittee. There<strong>for</strong>e, only<br />

those methods that provide benefits to <strong>the</strong> permittee that are greater than <strong>the</strong> costs<br />

to <strong>the</strong> permittee would be implemented. The District is not requiring permittees or<br />

applicants to implement any particular frost / freeze protection method. There are a<br />

variety <strong>of</strong> methods that could be used to protect crops. These methods include high<br />

tunnels, crop cloths, wind machines, using surface water through <strong>the</strong> construction <strong>of</strong><br />

tailwater recovery ponds, and using water from <strong>the</strong> surficial aquifer through <strong>the</strong> use<br />

<strong>of</strong> horizontal wells. The estimated costs <strong>of</strong> <strong>the</strong>se alternatives were provided in Chapter<br />

4.0 <strong>of</strong> this SERC. O<strong>the</strong>r methods may also be identified and implemented by <strong>the</strong><br />

applicant.<br />

8. Cost Savings to General Permittees From Not Needing to Manually Report<br />

Flow Meter Data – There are 84 existing General water use permittees that have<br />

permitted water quantities <strong>for</strong> frost / freeze protection and are required to report<br />

pumpage under current rule. Under <strong>the</strong> proposed DPC WUCA Rule, <strong>the</strong> AMR devices<br />

will electronically report pumpage to <strong>the</strong> District. There<strong>for</strong>e, <strong>the</strong>se permittees<br />

will not need to manually report pumpage under <strong>the</strong> proposed rule. The annual cost<br />

savings was estimated as $1,056 per permit times 84 permits or $88,704 in annual<br />

cost savings. The five year cost savings is $443,520.<br />

The regulatory cost <strong>of</strong> <strong>the</strong> DPC WUCA Rule is estimated to be $80,043 per year and<br />

$400,200 over five years, as indicated in <strong>the</strong> last row <strong>of</strong> Table 6.2.<br />

44324-000R4.docx<br />

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6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

6.2 Likely Impact <strong>of</strong> Proposed Rule on Economic Growth, Private Sector Employment<br />

and Investment<br />

The proposed rule is not likely to have an adverse impact on economic growth, privatesector<br />

job creation or employment, or private sector investment in excess <strong>of</strong> $1 million in<br />

<strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule. Because <strong>the</strong> proposed<br />

rule is not expected to result in measurable negative direct impacts on employment or<br />

sales, no indirect negative impacts on employment or sales in o<strong>the</strong>r industries are expected.<br />

Existing Permittees – Existing Permitted Withdrawals. The costs <strong>of</strong> <strong>the</strong> proposed<br />

rule to existing water use permittees in <strong>the</strong> DPC WUCA are not expected to be large<br />

enough to reduce <strong>the</strong> area’s production <strong>of</strong> goods and services relative to that which<br />

would exist without <strong>the</strong> proposed rule. These estimated costs were described and provided<br />

in Chapters 4.0 and 6.1 <strong>of</strong> this SERC. There<strong>for</strong>e, no adverse changes in economic<br />

growth, private sector employment and private sector investment are anticipated as a<br />

result <strong>of</strong> <strong>the</strong> proposed rule.<br />

New Permittee and Existing Permittee Requests <strong>for</strong> New Ground Water Quantities<br />

<strong>for</strong> Frost / Freeze Protection. The rule components with <strong>the</strong> greatest potential to impact<br />

economic growth, employment and investment are those that could cause applications<br />

<strong>for</strong> new permitted ground water quantities <strong>for</strong> frost / freeze protection to be denied<br />

when <strong>the</strong>y might not have been denied under current rule. In this case, alternative methods<br />

o<strong>the</strong>r than <strong>the</strong> use <strong>of</strong> ground water would need to be implemented in order to grow<br />

crops that require frost / freeze protection. These crops are strawberries, citrus, nurseries,<br />

blueberries and tropical fish farms. In <strong>the</strong> event that <strong>the</strong>se permittees wish to<br />

change <strong>the</strong>ir crops requiring frost / freeze protection to o<strong>the</strong>r crops that require frost /<br />

freeze protection, such as converting a citrus grove to a blueberry orchard, <strong>the</strong>y would<br />

likely be able to keep <strong>the</strong>ir permitted frost / freeze quantities. The future numbers <strong>of</strong> requests<br />

<strong>for</strong> new permitted ground water quantities <strong>for</strong> frost / freeze protection by crop<br />

type that will be denied under <strong>the</strong> proposed rule but might have been approved under<br />

current rule over <strong>the</strong> next five years are not known.<br />

44324-000R4.docx<br />

Of <strong>the</strong> crops that require frost / freeze protection, <strong>the</strong> most predominant crop produced in<br />

<strong>the</strong> DPC WUCA in terms <strong>of</strong> total acreage and <strong>the</strong> growth in acreage over <strong>the</strong> past 10<br />

years is strawberries. Strawberry production comprises 34 percent <strong>of</strong> <strong>the</strong> total agricultural<br />

land with permitted ground water quantities <strong>for</strong> irrigation in <strong>the</strong> DPC WUCA. The<br />

<strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area supplies about 6.2 percent <strong>of</strong> all strawberries produced in <strong>the</strong><br />

United States and 88 percent <strong>of</strong> all strawberries produced in Florida. Over <strong>the</strong> next five<br />

years, strawberries are expected to dominate <strong>the</strong> growth in acreage <strong>of</strong> crops needing<br />

frost / freeze protection in <strong>the</strong> DPC WUCA. Of <strong>the</strong> 32 new water use permits <strong>for</strong> frost /<br />

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HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

freeze protection issued in <strong>the</strong> DPC WUCA since 2000, 24 <strong>of</strong> <strong>the</strong>m, or 75 percent were<br />

<strong>for</strong> <strong>the</strong> purpose <strong>of</strong> irrigating strawberry acreage. Of <strong>the</strong> remaining 8 new permits, 4 were<br />

<strong>for</strong> citrus irrigation and 4 were <strong>for</strong> container nursery irrigation.<br />

Harvested strawberry acreage in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area 1 increased from 5,530 acres<br />

in 1997 to 5,800 acres in 2007, according to <strong>the</strong> 1997 and 2007 Census <strong>of</strong> Agriculture<br />

<strong>for</strong> Florida. Meanwhile, citrus acreage and production has been declining in Hillsborough<br />

and Polk counties, and in Florida, since 2000 according to data from <strong>the</strong> Florida<br />

Agricultural Statistics Service. 2 The four new citrus permits issued over <strong>the</strong> past ten<br />

years total only 62 acres. Evaluation <strong>of</strong> <strong>the</strong> District’s water use permit data found that<br />

permitted citrus acreage in <strong>the</strong> DPC WUCA has declined by at least 821 acres since<br />

1983. According to <strong>the</strong> University <strong>of</strong> Florida, orange production in Florida is expected to<br />

decline through 2029, from 160 million boxes per year to 135 million boxes per year,<br />

largely due to <strong>the</strong> effects <strong>of</strong> <strong>the</strong> citrus greening disease. 3 Also, given that <strong>the</strong> <strong>Dover</strong> /<br />

<strong>Plant</strong> <strong>City</strong> area is an important supplier <strong>of</strong> fresh market strawberries that produce greater<br />

net returns than citrus, it seems unlikely that <strong>the</strong> area will experience much growth in citrus<br />

acreage over <strong>the</strong> next five years. Given <strong>the</strong>se considerations, it seems unlikely that<br />

new applications <strong>for</strong> permitted ground water quantities in <strong>the</strong> DPC WUCA over <strong>the</strong> next<br />

five years will be <strong>for</strong> citrus irrigation.<br />

The growth in container nursery production in <strong>the</strong> DPC WUCA over <strong>the</strong> next five years<br />

will depend on how well urban development recovers from <strong>the</strong> recent economic recession.<br />

Since 2000, <strong>the</strong>re have been only 108 new acres <strong>of</strong> nurseries permitted to withdraw<br />

ground water quantities in <strong>the</strong> DPC WUCA according to <strong>the</strong> District’s water use<br />

permit database.<br />

The seven tropical fish farms in <strong>the</strong> DPC WUCA comprise a total <strong>of</strong> 240 acres which is<br />

unchanged since 1992, according to <strong>the</strong> District’s water use permit database.<br />

There are 176 acres <strong>of</strong> blueberries in <strong>the</strong> DPC WUCA that have permitted groundwater<br />

quantities <strong>for</strong> supplemental irrigation and frost / freeze protection. This acreage is less<br />

than one percent <strong>of</strong> all irrigated acreage in <strong>the</strong> DPC WUCA. According to <strong>the</strong> District’s<br />

water use permit database, 53 percent <strong>of</strong> this acreage is relatively new, having been first<br />

44324-000R4.docx<br />

1 The <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area is defined in this study as <strong>the</strong> strawberry growing area in Hillsborough<br />

and Polk counties.<br />

2 Florida Agricultural Statistics Service, “Florida Agriculture Statistics Bulletin, 2010” and “Florida Agricultural<br />

Facts”, 2000.<br />

3 Thomas Spreen, Pr<strong>of</strong>essor, Food and Resource Economics Department, University <strong>of</strong> Florida,<br />

“World Orange Juice Market Projections Under Endemic HLB”, presentation at <strong>the</strong> International Citrus<br />

Economics Conference, October 2010, Orlando, Florida.<br />

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HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

permitted in 2009 on existing permits where it appears that <strong>the</strong> permitted blueberry<br />

acreage replaced citrus and vegetable production.<br />

An assessment <strong>of</strong> <strong>the</strong> impact <strong>of</strong> <strong>the</strong> proposed DPC WUCA rule on <strong>the</strong> economic viability<br />

<strong>of</strong> new strawberry, citrus and blueberry production is provided below. Because plant<br />

nurseries and tropical fish farms are extremely diverse and <strong>the</strong>re is a lack <strong>of</strong> revenue<br />

and cost data that can be used to conduct an economic assessment, <strong>the</strong> potential economic<br />

impacts to <strong>the</strong>se industries are described.<br />

The estimated net returns to land and risk per acre per year from strawberry, blueberry<br />

and citrus production are provided in Tables 6.3 through 6.5. These tables provide <strong>the</strong><br />

calculations <strong>of</strong> <strong>the</strong> annual net returns to land and risk per farmed acre which is a metric<br />

that is different from <strong>the</strong> annual net income per farmed acre estimates provided in Chapter<br />

4.0 <strong>of</strong> this SERC. The costs used to calculate <strong>the</strong> net returns estimates include investment<br />

costs such as machinery depreciation or machinery fixed cost, taxes and regulatory<br />

costs, and interest on investment costs. If <strong>the</strong> annual per acre net return from<br />

production (revenue minus cost) is greater than <strong>the</strong> estimated annual per acre cost <strong>of</strong><br />

alternative frost / freeze protection methods, <strong>the</strong>n it is likely that <strong>the</strong> growth in acreage <strong>of</strong><br />

<strong>the</strong> crop will not be affected by <strong>the</strong> proposed rule. If this is <strong>the</strong> case, <strong>the</strong>n <strong>the</strong> proposed<br />

rule is not likely to have an adverse impact on economic growth, private-sector job creation<br />

or employment, or private sector investment.<br />

The revenues and costs per farmed acre per year from growing, harvesting and marketing<br />

strawberries, citrus and blueberries were estimated using revenue in<strong>for</strong>mation from<br />

<strong>the</strong> Florida Agricultural Statistics Service and cost in<strong>for</strong>mation from <strong>the</strong> University <strong>of</strong> Florida<br />

Institute <strong>of</strong> Food and Agricultural Sciences. The costs are representative <strong>of</strong> a typical<br />

farm operation but may be different <strong>for</strong> individual growers. The prices and yields are averages<br />

<strong>for</strong> Florida and may be different <strong>for</strong> individual growers. These data are <strong>the</strong> best<br />

publically available in<strong>for</strong>mation that can be used to assess <strong>the</strong> economic viability <strong>of</strong> frost<br />

/ freeze protection methods o<strong>the</strong>r than <strong>the</strong> use <strong>of</strong> ground water and provide a general<br />

understanding <strong>of</strong> <strong>the</strong> economic viability <strong>of</strong> producing <strong>the</strong>se crops.<br />

44324-000R4.docx<br />

Strawberries. The estimated annual net returns to land and risk per acre in <strong>the</strong> <strong>Dover</strong> /<br />

<strong>Plant</strong> <strong>City</strong> area from growing one strawberry crop per year is provided in Table 6.3. The<br />

strawberry price and yield in<strong>for</strong>mation represents <strong>the</strong> State <strong>of</strong> Florida and are from <strong>the</strong><br />

Florida Agricultural Statistics Service. The estimated costs <strong>of</strong> production represent<br />

strawberries in <strong>the</strong> <strong>Plant</strong> <strong>City</strong> area <strong>of</strong> Florida and are from <strong>the</strong> University <strong>of</strong> Florida Institute<br />

<strong>of</strong> Food and Agricultural Sciences. This analysis estimated that <strong>the</strong> net returns to<br />

land and risk from a strawberry farm that grows only one crop on <strong>the</strong> same field each<br />

year is $9,745 per acre per year.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-11<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.3<br />

<strong>Estimated</strong> Net Returns to Land and Risk From One Strawberry Crop<br />

(No double-cropping) Using Alternative Frost / Freeze Protection Methods, 2010<br />

Item<br />

Dollars per Acre per Year (a)<br />

Using Crop Cloths <strong>for</strong><br />

Frost Freeze Protection<br />

Using High Tunnels <strong>for</strong><br />

Frost Freeze Protection<br />

Revenue - Price (b) $15.704 per flat $15.704 per flat<br />

Revenue - Yield per acre (b) 2,291.8 flats 2,291.8 flats<br />

Total Revenue $35,991 $35,991<br />

<strong>Costs</strong><br />

Operating <strong>Costs</strong> $9,791 $9,791<br />

Harvest and Marketing <strong>Costs</strong> $12,834 $12,834<br />

Machinery Fixed Cost and Overhead $3,620 $3,620<br />

Total Cost $26,245 $26,245<br />

Net Returns to Land and Risk Be<strong>for</strong>e<br />

Frost / Freeze Protection $9,745 $9,745<br />

Annualized Cost <strong>of</strong> Alternative<br />

Frost / Freeze Method (c) $2,694 $8,716<br />

Net Returns to Land and Risk Including<br />

Frost / Freeze Protection $7,051 $1,029<br />

NOTE: These tables provide <strong>the</strong> calculations <strong>of</strong> <strong>the</strong> annual net returns to land and risk per<br />

farmed acre which is a metric that is different from <strong>the</strong> annual net income per farmed acre estimates<br />

provided in Chapter 4.0 <strong>of</strong> this SERC. The costs used to calculate <strong>the</strong> net returns estimates<br />

include investment costs such as machinery depreciation or machinery fixed cost, taxes<br />

and regulatory costs, and interest on investment costs.<br />

(a) From Scott Smith and Timothy Taylor, "Production <strong>Costs</strong> and Commodity Budgets <strong>for</strong> Selected<br />

Florida Vegetables", Department <strong>of</strong> Food and Resource Economics, Florida Cooperative<br />

Extension Service, UF/IFAS, University <strong>of</strong> Florida, Gainesville, Florida, 2008-2009, EDIS document<br />

FE436.<br />

(b) Prices and Yields are 5-year averages (2005 to 2009) in 2010 dollars from Florida Agricultural<br />

Statistics Service, Vegetable Summary. Revenue based on 12 pound flats.<br />

(c) See Chapter 4.0 Transactional <strong>Costs</strong> <strong>for</strong> explanation <strong>of</strong> how <strong>the</strong>se costs were estimated.<br />

44324-000R4.docx<br />

If ano<strong>the</strong>r crop is planted on <strong>the</strong> same field in <strong>the</strong> same year, <strong>the</strong>n <strong>the</strong> net returns per<br />

acre per year are even larger than provided in Table 6.3. In many cases, <strong>the</strong> second<br />

crop is able to use <strong>the</strong> existing mulch and fertilizer on and in <strong>the</strong> soil, respectively, that<br />

were provided to <strong>the</strong> first strawberry crop that year. This practice is called double cropping.<br />

An analysis <strong>of</strong> District water use permit data found that about 65 percent <strong>of</strong> strawberry<br />

growers are assigned o<strong>the</strong>r crops on <strong>the</strong>ir permit that are likely to be a double<br />

crop. Interviews with District permitting staff found that about 80 percent <strong>of</strong> recent permit<br />

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6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

renewals are requesting permitted quantities to double crop strawberries with vegetables<br />

or with ano<strong>the</strong>r strawberry crop.<br />

The estimated costs per acre per year from using crop cloths and high tunnels were provided<br />

in Chapter 4.0 Transactional <strong>Costs</strong> <strong>of</strong> this SERC. The high cost estimates are<br />

used in Table 6.3. The use <strong>of</strong> crop cloths is estimated to cost about $2,700 per acre per<br />

year. The use <strong>of</strong> high tunnels is estimated to cost about $8,700 per acre per year.<br />

Evaluation <strong>of</strong> Table 6.3 finds that <strong>the</strong> net return to land and risk including <strong>the</strong> cost <strong>of</strong> <strong>the</strong><br />

alternative frost / freeze protection method is $7,051 per acre per year when crop cloths<br />

are used and $1,029 when high tunnels are used. Thus, is it likely that <strong>the</strong> proposed<br />

rule will not negatively impact <strong>the</strong> expansion <strong>of</strong> strawberry production in <strong>the</strong> DPC WUCA<br />

as it would still be a pr<strong>of</strong>itable endeavor.<br />

Citrus. The estimated annual net returns to land, trees, and risk per acre in southwest<br />

Florida from growing oranges is provided in Table 6.4. The orange prices and yields<br />

used to estimate revenue represent all oranges grown in <strong>the</strong> State <strong>of</strong> Florida and are<br />

from <strong>the</strong> Florida Agricultural Statistics Service. The estimated costs <strong>of</strong> production<br />

represent orange production practices in southwest Florida and include <strong>the</strong> cost <strong>of</strong> managing<br />

<strong>the</strong> grove to protect trees from citrus canker and citrus greening. These costs are<br />

from <strong>the</strong> University <strong>of</strong> Florida Institute <strong>of</strong> Food and Agricultural Sciences.<br />

This analysis estimated that <strong>the</strong> net returns to land, trees and risk from citrus production<br />

ranges from $58 per acre per year if no diseased trees need to be replaced to -$297 per<br />

acre per year if seven diseased trees per acre per year need to be replaced. These net<br />

returns do not include <strong>the</strong> cost <strong>of</strong> alternative frost / freeze protection methods. Comparison<br />

<strong>of</strong> <strong>the</strong>se net returns to <strong>the</strong> costs <strong>of</strong> alternative frost / freeze protection methods, such<br />

as high tunnels and wind machines, finds that <strong>the</strong>se methods are not likely to be economically<br />

feasible <strong>for</strong> citrus production over <strong>the</strong> next five years.<br />

44324-000R4.docx<br />

As discussed above, no significant increase in citrus acreage in <strong>the</strong> DPC WUCA is expected<br />

over <strong>the</strong> next five years with or without <strong>the</strong> proposed rule. New citrus groves in<br />

<strong>the</strong> DPC WUCA where owners cannot obtain permitted frost / freeze protection ground<br />

water quantities may find economically feasible methods to obtain ground water through<br />

<strong>the</strong> Net Benefits provision <strong>of</strong> <strong>the</strong> proposed rule. Under this provision, ground water <strong>for</strong><br />

frost / freeze protection may be available by using <strong>the</strong> retired and historically used frost /<br />

freeze protection quantities <strong>of</strong> existing permittees or by mitigating <strong>the</strong> effect <strong>of</strong> ground<br />

water pumping through <strong>the</strong> development <strong>of</strong> alternative water sources such as surface<br />

water. In some instances, it may be economically feasible to use surface water or o<strong>the</strong>r<br />

alternative water source <strong>for</strong> frost / freeze protection.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-13<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.4<br />

<strong>Estimated</strong> Net Returns to Land, Trees and Risk from Producing Oranges<br />

In Southwest Florida, 2010 Dollars<br />

Dollars per Acre<br />

No diseased With diseased tree<br />

Item<br />

tree removal removal (a)<br />

Revenue, on-tree (b) $1,837 $1,837<br />

<strong>Costs</strong><br />

Production & Cultural <strong>Costs</strong> (c) $987 $1,263<br />

Interest on Production & Cultural <strong>Costs</strong> (c) $64 $82<br />

Management <strong>Costs</strong> (c) $48 $109<br />

Taxes / <strong>Regulatory</strong> <strong>Costs</strong> (c) $61 $61<br />

Interest on Capital <strong>Costs</strong> (c) $321 $321<br />

Depreciation <strong>of</strong> machinery and equipment (d) $298 $298<br />

Total Cost $1,779 $2,134<br />

Net Returns to Land, Trees and Risk $58 -$297<br />

44324-000R4.docx<br />

NOTE: These tables provide <strong>the</strong> calculations <strong>of</strong> <strong>the</strong> annual net returns to land and risk per farmed<br />

acre which is a metric that is different from <strong>the</strong> annual net income per farmed acre estimates provided<br />

in Chapter 4.0 <strong>of</strong> this SERC. The costs used to calculate <strong>the</strong> net returns estimates include<br />

investment costs such as machinery depreciation or machinery fixed cost, taxes and regulatory<br />

costs, and interest on investment costs.<br />

(a) Cost assumes that, each year, 7 trees per acre are removed and replaced due to citrus canker or<br />

greening.<br />

(b) On-tree revenue is <strong>the</strong> average annual on-tree price <strong>of</strong> all oranges in Florida from 2000 to 2009<br />

in 2010 dollars ($5.26 per box) times <strong>the</strong> average yield per acre <strong>of</strong> all oranges in Florida from 2000<br />

to 2009 (349 boxes per acre). On-tree prices and yields per acre are from Florida Agricultural Statistics<br />

Service, "Citrus Summary 2008-2009", page 18. From page 9 <strong>of</strong> this report, "All prices ... are<br />

on-tree prices representing <strong>the</strong> average price received by growers <strong>for</strong> <strong>the</strong>ir fruit. The term "on-tree"<br />

relates to fruit returns to <strong>the</strong> grower after <strong>the</strong> costs <strong>of</strong> picking, hauling, and packing have been removed.<br />

Prices are based on records <strong>of</strong> commercial fresh fruit sales and processed fruit returns."<br />

(c) All costs reported in this table are from Ronald P. Muraro, Extension Economist, "Summary <strong>of</strong><br />

2009-2010 Citrus Budget <strong>for</strong> <strong>the</strong> Southwest Florida Production Region", University <strong>of</strong> Florida, IFAS,<br />

CREC, Lake Alfred, Florida, 2010, pages 4 and 5. Cost represents a mature (>/= 10 year old) citrus<br />

grove in southwest Florida and includes grove management <strong>for</strong> citrus canker and greening. The<br />

production and cultural cost includes cost <strong>for</strong> repair <strong>of</strong> machinery and equipment; maintenance; labor;<br />

chemicals, and overhead management.<br />

(d) This value was estimated by dividing <strong>the</strong> $321 interest on capital cost by 5% annual interest to<br />

obtain an estimate <strong>of</strong> average farm debt. This debt is used as a proxy <strong>for</strong> <strong>the</strong> remaining undepreciated<br />

value <strong>of</strong> <strong>the</strong> equipment and machinery cost. Then is debt was amortized over 15 years at 5%<br />

annual interest to obtain an estimate <strong>of</strong> <strong>the</strong> annual principal and interest payment on this debt. From<br />

this annual payment, <strong>the</strong> interest on capital cost was deducted to obtain an estimate <strong>of</strong> <strong>the</strong> annual<br />

depreciation <strong>of</strong> machinery and equipment.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-14<br />

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6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Blueberries. The estimated annual net returns to land and risk per acre in Florida from<br />

growing blueberries is provided in Table 6.5. The blueberry prices and yields used to<br />

estimate revenue represent all blueberries grown in <strong>the</strong> State <strong>of</strong> Florida and are from <strong>the</strong><br />

Florida Agricultural Statistics Service. The estimated costs <strong>of</strong> production are from <strong>the</strong><br />

University <strong>of</strong> Florida, Institute <strong>of</strong> Food and Agricultural Sciences and represent blueberry<br />

production practices in Florida <strong>for</strong> early-ripening sou<strong>the</strong>rn highbush plantings with pinebark<br />

mulch. This production system is popular in Florida because it provides marketable<br />

blueberries early in <strong>the</strong> season (April and early May) when relatively high prices can be<br />

obtained. However, this crop is more likely to experience greater damage from freeze<br />

events than if <strong>the</strong> crop was harvested later in <strong>the</strong> season at lower prices.<br />

This analysis estimated that <strong>the</strong> net returns to land and risk from blueberry production is<br />

$2,023 per acre per year. These net returns do not include <strong>the</strong> cost <strong>of</strong> alternative frost /<br />

freeze protection methods. Comparison <strong>of</strong> <strong>the</strong>se net returns to <strong>the</strong> costs <strong>of</strong> three alternative<br />

frost / freeze protection methods, crop cloths, high tunnels and wind machines<br />

provided in Table 6.5, finds that only <strong>the</strong> wind machines would be economically feasible<br />

to use in blueberry production at this time. Wind machines are effective in protecting <strong>the</strong><br />

plants from radiation freeze events but not advection freeze events. The use <strong>of</strong> orchard<br />

heaters can be effective in protecting blueberry plants during both types <strong>of</strong> freeze<br />

events, but according to <strong>the</strong> University <strong>of</strong> Florida, fuel costs can be over $300 per acre<br />

<strong>for</strong> a single night <strong>of</strong> protection. 4<br />

Some landowners in <strong>the</strong> DPC WUCA may desire new permitted groundwater quantities<br />

to protect blueberries during freeze events. However, <strong>the</strong> number <strong>of</strong> additional acres<br />

over <strong>the</strong> next five years <strong>for</strong> which new permitted quantities cannot be obtained under <strong>the</strong><br />

proposed rule but might have been obtained under current rule is not expected to be<br />

significant. New blueberry orchards in <strong>the</strong> DPC WUCA where owners cannot obtain<br />

permitted frost / freeze protection ground water quantities may find economically feasible<br />

methods to obtain ground water through <strong>the</strong> Net Benefits provision <strong>of</strong> <strong>the</strong> proposed rule.<br />

Under this provision, ground water <strong>for</strong> frost / freeze protection may be available by using<br />

<strong>the</strong> retired and historically used frost / freeze protection quantities <strong>of</strong> existing permittees<br />

or by mitigating <strong>the</strong> effect <strong>of</strong> ground water pumping through <strong>the</strong> development <strong>of</strong> alternative<br />

water sources such as surface water. In some instances, it may be economically<br />

feasible to use surface water or o<strong>the</strong>r alternative water source <strong>for</strong> frost / freeze protection.<br />

44324-000R4.docx<br />

4 P.M. Lyrene and J.G. Williamson, “Protecting Blueberries from Freezes in Florida”, Department <strong>of</strong><br />

Horticultural Sciences, Florida Cooperative Extension Service, Institute <strong>of</strong> Food and Agricultural<br />

Sciences, University <strong>of</strong> Florida, Document HS968, May 2004.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-15<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

Table 6.5<br />

<strong>Estimated</strong> Net Returns to Land and Risk From Blueberry Production in Florida Using<br />

Alternative Frost / Freeze Protection Methods, 2010<br />

Item<br />

Alternative Frost / Freeze Method<br />

Crop<br />

Cloths<br />

Dollars per Acre<br />

High Tunnels<br />

Wind Machines<br />

Price per pound (a) $5.64 $5.64 $5.64<br />

Yield in pounds per acre (a) 3,052 3,052 3,052<br />

Yield in flats per acre (a) 825 825 825<br />

Total Revenue (b) $17,220 $17,220 $17,220<br />

<strong>Costs</strong> (c )<br />

Land preparation (d) $796 $796 $796<br />

<strong>Plant</strong>ing (e) $415 $415 $415<br />

Drip irrigation system - well, pump, motor,<br />

pipe, and drip system (f) $732 $732 $732<br />

Solid set sprinkler system <strong>for</strong> frost / freeze<br />

protection using water (g) $259 $259 $259<br />

Production cultural operating costs, including<br />

operating interest - annual $2,259 $2,259 $2,259<br />

Machinery cost including tractors, sprayers,<br />

mowers, trucks, etc. (h) $256 $256 $256<br />

Overhead and management $2,133 $2,133 $2,133<br />

Harvest cost including picking, packing, packing<br />

material and broker fee (i) $8,348 $8,348 $8,348<br />

Total Cost $15,197 $15,197 $15,197<br />

Net Returns to Land and Risk Be<strong>for</strong>e Alternative<br />

Frost / Freeze Protection Implemented<br />

$2,023 $2,023 $2,023<br />

Annualized Cost <strong>of</strong> Alternative Frost / Freeze Method (j)<br />

Low Cost Estimate $2,249 $3,849 $366<br />

High Cost Estimate $2,694 $8,716 $366<br />

Net Returns Including Frost / Freeze Protection<br />

Using low cost f/f protection method -$226 -$1,826 $1,657<br />

Using high cost f/f protection method -$671 -$6,693 $1,657<br />

44324-000R4.docx<br />

(a) Price per pound and yield in pounds per acre are five year averages <strong>of</strong> 2004-05 crop<br />

year to 2008-09 crop year and are from Florida Agricultural Statistics Service, "Vegetable<br />

Summary", February 17, 2010; February 19, 2008; and March 14, 2007. A flat is about 3.7<br />

pounds.<br />

(b) Revenue is price per pound times yield in pounds per acre.<br />

(c) All cost data are from 2010 Powerpoint presentation by Jeffery G. Williamson, Horticultural<br />

Sciences Department and Ronald P. Muraro, Citrus Research and Education Center,<br />

Institute <strong>of</strong> Food and Agricultural Sciences, University <strong>of</strong> Florida, Gainesville. <strong>Costs</strong><br />

represent early-ripening sou<strong>the</strong>rn highbush plantings with pinebark mulch.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-16<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

(d) Land preparation cost includes land clearing, preplant weed control, triple superphosphate<br />

application, bedding, breaking aisles, ditching and drainage, and milled pine bark.<br />

Cost is one-time cost <strong>of</strong> $6,149 per acre amortized over 10 years <strong>of</strong> plant life at 5% annual<br />

interest.<br />

(e) Cost to plant 1,740 plants per acre 2.5 feet by 10 feet apart. Cost is one-time cost <strong>of</strong><br />

$5,174 per acre amortized over 10 years <strong>of</strong> plant life at 5% annual interest.<br />

(f) One-time cost <strong>of</strong> $5,650 per acre <strong>for</strong> 20 acre farm amortized over 10 years <strong>of</strong> system life<br />

at 5% annual interest.<br />

(g) One-time cost <strong>of</strong> $2,000 per acre amortized over 10 years useful life at 5% annual interest.<br />

(h) One-time cost <strong>of</strong> $1,974 per acre amortized over 10 years useful life at 5% annual interest.<br />

(i) Harvest cost per 3.7 pound flat is $10.12.<br />

(j) See Chapter 4.0 Transactional <strong>Costs</strong> to explanation <strong>of</strong> how <strong>the</strong>se costs were estimated.<br />

<strong>Plant</strong> Nurseries. <strong>Plant</strong> nurseries are very diverse in terms <strong>of</strong> <strong>the</strong> types <strong>of</strong> plants grown,<br />

<strong>the</strong>ir sensitivity to cold conditions, and <strong>the</strong> degree to which <strong>the</strong>y are protected from<br />

wea<strong>the</strong>r through <strong>the</strong> use <strong>of</strong> enclosed areas. In <strong>the</strong> event that <strong>the</strong> demand <strong>for</strong> landscape<br />

plants increases over <strong>the</strong> next five years, <strong>the</strong>re could be applications <strong>for</strong> new water<br />

quantities to provide frost / freeze protection to new nursery areas in <strong>the</strong> DPC WUCA.<br />

The impact <strong>of</strong> <strong>the</strong> proposed rule on <strong>the</strong>se applications will depend on whe<strong>the</strong>r or not<br />

<strong>the</strong>se requests would have been approved under current rule. Under <strong>the</strong> proposed rule,<br />

new and expanding nursery plant farms will be able to pump groundwater <strong>for</strong> frost<br />

/freeze protection up to <strong>the</strong> point where <strong>the</strong> Minimum Aquifer Level Protection Zone is<br />

not impacted. Any additional ground water needed <strong>for</strong> frost /freeze protection would<br />

need to be obtained using <strong>the</strong> Net Benefits provision <strong>of</strong> <strong>the</strong> proposed rule described<br />

above and on pages 1-10 to 1-12 <strong>of</strong> this SERC. If <strong>the</strong> options available under <strong>the</strong> Net<br />

Benefits provision and <strong>the</strong> use <strong>of</strong> alternative protection methods are not economically<br />

feasible, <strong>the</strong>n new nursery plant production in <strong>the</strong> DPC WUCA might be limited to higher<br />

valued plants grown in green houses and plants that are cold tolerant.<br />

44324-000R4.docx<br />

Tropical Fish Farms. The aquaculture operations in <strong>the</strong> DPC WUCA are devoted exclusively<br />

to <strong>the</strong> production <strong>of</strong> tropical fish which is by far <strong>the</strong> most common type <strong>of</strong> aquaculture<br />

operation in Florida. Tropical fish farms are very diverse in terms <strong>of</strong> <strong>the</strong> types <strong>of</strong><br />

fish species produced and <strong>the</strong> degree to which <strong>the</strong>y are protected from <strong>the</strong> wea<strong>the</strong>r.<br />

New and expanding fish farms will be able to pump groundwater <strong>for</strong> cold protection up to<br />

<strong>the</strong> point where <strong>the</strong> Minimum Aquifer Level Protection Zone is not impacted. Any additional<br />

ground water needed <strong>for</strong> cold protection would need to be obtained using <strong>the</strong> Net<br />

Benefits provision <strong>of</strong> <strong>the</strong> proposed rule described above and on pages 1-10 to 1-12 <strong>of</strong><br />

this SERC. If <strong>the</strong> options available under <strong>the</strong> Net Benefits provision are not economically<br />

feasible, <strong>the</strong>n new fish production in <strong>the</strong> DPC WUCA might be limited to high value<br />

fish species grown indoors and cold tolerant species.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-17<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

6.3 Likely Impact <strong>of</strong> Proposed Rule on Business Competitiveness, Productivity or<br />

Innovation<br />

The proposed rule is not likely to have an adverse impact on business competitiveness,<br />

including <strong>the</strong> ability <strong>of</strong> persons doing business in <strong>the</strong> state to compete with persons<br />

doing business in o<strong>the</strong>r states or domestic markets, productivity, or innovation in excess<br />

<strong>of</strong> $1 million in <strong>the</strong> aggregate within 5 years after <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> rule. The<br />

only industry that has <strong>the</strong> potential to be negatively affected by <strong>the</strong> proposed rule over<br />

<strong>the</strong> next five years, as explained in Chapter 6.2, would likely be businesses who request<br />

new permitted quantities <strong>for</strong> frost / freeze protection <strong>of</strong> a new or expanding strawberry<br />

farm and <strong>the</strong>ir request is denied because <strong>of</strong> <strong>the</strong> proposed rule. The future numbers <strong>of</strong><br />

requests <strong>for</strong> new permitted ground water quantities <strong>for</strong> frost / freeze protection by crop<br />

type that will be denied under <strong>the</strong> proposed rule but might not be denied under current<br />

rule over <strong>the</strong> next five years is not known.<br />

Most <strong>of</strong> <strong>the</strong> requests <strong>for</strong> new permitted ground water quantities in <strong>the</strong> DPC WUCA are<br />

expected to be <strong>for</strong> strawberry production under current rule and <strong>the</strong> proposed rule. New<br />

or expanding strawberry farms may experience a production cost increase associated<br />

with <strong>the</strong> increased cost <strong>of</strong> frost / freeze protection. However, this cost increase is not<br />

expected to be large enough to negatively impact <strong>the</strong> cost competitiveness <strong>of</strong> strawberry<br />

production in <strong>the</strong> DPC WUCA over <strong>the</strong> next five years <strong>for</strong> <strong>the</strong> following reasons.<br />

1. The average annual net returns to land and risk per farmed acre from strawberry<br />

production in Florida, including <strong>the</strong> cost <strong>of</strong> frost / freeze protection methods o<strong>the</strong>r<br />

than ground water, are expected to be significantly greater than zero. New<br />

strawberry farms or newly farmed areas can be designed to incorporate alternative<br />

frost / freeze methods. Double cropping fields with strawberries or vegetables<br />

fur<strong>the</strong>r increases grower net returns to land and risk per acre, thus allowing<br />

growers to continue growing strawberries under <strong>the</strong> proposed rule.<br />

2. Recent research conducted by <strong>the</strong> University <strong>of</strong> Florida 5 near <strong>the</strong> DPC WUCA<br />

found that use <strong>of</strong> high tunnels in strawberry production significantly increased<br />

yield per acre because <strong>the</strong> flowers and small fruit were spared <strong>the</strong> damage<br />

caused by sprinkler irrigation during freeze events and <strong>the</strong> fruit was protected<br />

against <strong>the</strong> damaging effects <strong>of</strong> rainfall that reduces fruit number and quality.<br />

Crops grown on plastic mulch, such as strawberries, are permitted as if <strong>the</strong>re is<br />

44324-000R4.docx<br />

5 University <strong>of</strong> Florida, IFAS Extension, Berry / Vegetable Times, February 2010, “Notes on Cultural<br />

Practices: Can High Tunnels Reduce Water Volumes <strong>for</strong> Freeze Protection and Improve Strawberry<br />

Yields at <strong>the</strong> Same Time?” by Bielinski M. Santos and Teresa P. Salamé-Donoso, pages 5 to 8.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-18<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


6.0 OVERALL REGULATORY COST AND ECONOMIC IMPACT JANUARY 2011<br />

no effective rainfall so rainfall should not be needed to grow strawberries. There<strong>for</strong>e,<br />

<strong>the</strong> cost <strong>of</strong> high tunnels will be at least partially if not fully <strong>of</strong>fset by <strong>the</strong> benefits<br />

<strong>of</strong> high tunnels as <strong>the</strong>y increase crop yield per acre.<br />

3. Historic and recent strawberry prices and yields in Florida have been economically<br />

strong and growing. The average real prices received by Florida strawberry<br />

growers have increased over <strong>the</strong> past 10 years. The 5-year average real price<br />

received from 2000 to 2004 was $13.08 per 12-pound flat according to price data<br />

from <strong>the</strong> Florida Annual Statistical Bulletin 2010. 6 The 5-year average price received<br />

from 2005 to 2009 was $15.70 which is 20 percent higher than <strong>the</strong> previous<br />

five years. Average yield per acre increased by 4.6 percent over <strong>the</strong> same<br />

period.<br />

4. The United States is <strong>the</strong> world’s largest producer <strong>of</strong> strawberries, consistently<br />

producing over 25 percent <strong>of</strong> <strong>the</strong> world’s production. Florida is <strong>the</strong> second largest<br />

U.S. supplier <strong>of</strong> strawberries after Cali<strong>for</strong>nia. Florida provides about 7 percent<br />

<strong>of</strong> U.S. production and 1.8 percent <strong>of</strong> world production. About 90 percent <strong>of</strong><br />

Florida’s strawberry production is in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area. 7 Florida strawberry<br />

growers can harvest during <strong>the</strong> winter months <strong>of</strong> November through February<br />

when supplies from o<strong>the</strong>r growing regions are limited, thus supplying an important<br />

market niche. While strawberry growers in <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area<br />

cannot control <strong>the</strong> price <strong>the</strong>y receive <strong>for</strong> strawberries, <strong>the</strong>y are a dominant player<br />

in <strong>the</strong> national and world wide strawberry market.<br />

Because strawberries are an agricultural commodity, growers can only influence <strong>the</strong><br />

price that <strong>the</strong>y receive by choosing <strong>the</strong>ir harvest dates, to <strong>the</strong> extent that <strong>the</strong>y can control<br />

those dates. As long as <strong>the</strong> price <strong>the</strong>y receive <strong>for</strong> strawberries and <strong>the</strong>ir yield per acre<br />

are sufficient to cover all costs <strong>of</strong> production, harvesting and marketing, including <strong>the</strong><br />

cost <strong>of</strong> frost / freeze protection, <strong>the</strong>n business competitiveness, productivity, and innovation<br />

will not be negatively affected by <strong>the</strong> proposed rule.<br />

44324-000R4.docx<br />

6 Florida price and yield data are from United States Department <strong>of</strong> Agriculture, National Agricultural<br />

Statistics Service, “Florida Annual Statistical Bulletin 2010”, Page E-14.<br />

7 United States Department <strong>of</strong> Agriculture, “Fruit and Tree Nuts Outlook”, July 28, 2005, FTS-317,<br />

pages 15 to 24.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 6-19<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


Chapter 7.0<br />

Additional In<strong>for</strong>mation<br />

This chapter describes <strong>the</strong> benefits <strong>of</strong> <strong>the</strong> proposed rule and <strong>the</strong> recovery strategy and<br />

summarizes <strong>the</strong> non-regulatory approach that will be used to assist in achieving <strong>the</strong><br />

goals <strong>of</strong> <strong>the</strong> proposed rule.<br />

7.1 Benefits <strong>of</strong> <strong>the</strong> Proposed Rule and Recovery Strategy<br />

The proposed rule and recovery strategy are primarily designed to:<br />

<br />

<br />

<br />

<br />

minimize potential negative impacts <strong>of</strong> <strong>the</strong> proposed rule on existing growers in<br />

<strong>the</strong> region,<br />

prevent <strong>the</strong> worsening <strong>of</strong> <strong>the</strong> recent widespread negative impacts from cold protection<br />

groundwater pumpage (addressed in <strong>the</strong> Executive Summary),<br />

provide regulatory and non-regulatory incentives to reduce existing cold protec-<br />

tion groundwater pumpage and its impacts, and<br />

more equitably distribute well failure investigation and repair responsibilities<br />

among permittees.<br />

Some <strong>of</strong> <strong>the</strong>se benefits may be difficult to quantify, but <strong>the</strong>y are none<strong>the</strong>less significant.<br />

For example, proposed requirements to implement economically feasible alternative cold<br />

protection methods and <strong>the</strong> financial assistance provided to growers to implement <strong>the</strong>m<br />

are anticipated to facilitate <strong>the</strong> transition to non-groundwater cold protection. However, it<br />

is not possible to precisely predict how much growers will be able to reduce cold protection<br />

pumpage <strong>for</strong> a given freeze event through <strong>the</strong> implementation <strong>of</strong> economically feasible<br />

alternative cold protection methods. It is also not possible to precisely predict how<br />

much a given reduction in cold protection pumpage would reduce <strong>the</strong> incidence <strong>of</strong> well<br />

failures and sinkhole <strong>for</strong>mation in <strong>the</strong> region. It is also not possible to predict how and <strong>for</strong><br />

whom existing permitted cold protection quantities might have to be cut in <strong>the</strong> absence<br />

<strong>of</strong> an approved recovery and prevention strategy. Despite <strong>the</strong>se uncertainties, many<br />

benefits will be realized and are addressed below.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

PAGE 7-1<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Avoided Revenue Losses from Reduced Cold Protection Pumpage in <strong>the</strong> Absence<br />

<strong>of</strong> an Adopted Recovery Strategy Rule. By declaring <strong>the</strong> <strong>Dover</strong> / <strong>Plant</strong> <strong>City</strong> area a<br />

Water Use Caution Area, establishing a Minimum Aquifer Level, and proposing a recovery<br />

strategy to achieve <strong>the</strong> Minimum Aquifer Level, <strong>the</strong> District avoids <strong>the</strong> need <strong>for</strong> near<br />

term reductions in existing cold protection water use that would o<strong>the</strong>rwise be required by<br />

current District rule and State statute to address <strong>the</strong> unacceptable impacts that occurred<br />

in January 2010. The most likely action, absent <strong>the</strong> proposed recovery strategy, would<br />

be to limit <strong>the</strong> overall amount <strong>of</strong> pumping during a freeze event to <strong>the</strong> amount that would<br />

keep <strong>the</strong> aquifer level at least 10 feet above mean sea level (about a 20% reduction).<br />

Levels lower than 10 feet will likely repeat <strong>the</strong> widespread well failures and sinkhole <strong>for</strong>mation<br />

<strong>of</strong> <strong>the</strong> January 2010 freeze event. If, in <strong>the</strong> near term, <strong>the</strong> duration <strong>of</strong> allowable<br />

pumping were reduced to prevent aquifer levels from falling below 10 feet, those without<br />

alternative cold protection methods would likely suffer total crop failure when <strong>the</strong> duration<br />

and/or severity <strong>of</strong> <strong>the</strong> freeze event would require <strong>the</strong> pumping <strong>of</strong> ground water quantities<br />

beyond those allowable under current rule.<br />

As shown in Table 4.11 in Chapter 4.0 <strong>of</strong> this SERC, an acre <strong>of</strong> strawberries (without<br />

double-cropping) can produce net income <strong>of</strong> approximately $13,400 per acre. If <strong>the</strong> crop<br />

is lost due to freeze damages, <strong>the</strong> $13,400 in net revenue per acre could become a<br />

$23,000 1 loss per acre as most operating costs would have been incurred and <strong>the</strong>re<br />

would be no revenue to <strong>of</strong>fset costs. A typical strawberry farm <strong>of</strong> about 20 farmed acres<br />

could lose as much as $460,000 in one season if sufficient water was not permitted <strong>for</strong><br />

cold protection and alternative methods <strong>of</strong> cold protection were not yet available. There<br />

are 7,613 acres permitted <strong>for</strong> strawberry production in <strong>the</strong> DPCWUCA and nearly all are<br />

permitted ground water quantities <strong>for</strong> frost / freeze protection.<br />

The adoption <strong>of</strong> <strong>the</strong> recovery strategy will avoid <strong>the</strong> need <strong>for</strong> near term reductions in<br />

permitted cold protection quantities and allow <strong>the</strong> strawberry, citrus, nursery, blueberry<br />

and tropical fish farm industries <strong>the</strong> time necessary to adopt alternative cold protection<br />

methods when feasible and avoid potential significant near term economic impacts to<br />

those industries and <strong>the</strong> economy <strong>of</strong> <strong>the</strong> region.<br />

Avoidance <strong>of</strong> Sinkhole Formation and Well Failures Resulting From Groundwater<br />

Use <strong>for</strong> Cold Protection. The negative impacts <strong>of</strong> well failures and <strong>the</strong> <strong>for</strong>mation <strong>of</strong><br />

sinkholes related to <strong>the</strong> cold protection pumpage during <strong>the</strong> January 2010 freeze are documented<br />

in <strong>the</strong> Executive Summary <strong>of</strong> this SERC.<br />

44324-000R4.docx<br />

1 $13,366 in lost net revenue plus $9,791 in cash costs (not including harvesting and marketing<br />

costs).<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-2<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

The proposed rules prohibit <strong>the</strong> issuance <strong>of</strong> new cold protection quantities that would<br />

affect <strong>the</strong> Minimum Aquifer Level Protection Zone. This will not prevent future sinkhole<br />

<strong>for</strong>mation and well failures due to existing permitted cold protection quantities. However,<br />

<strong>for</strong> a freeze event <strong>of</strong> a given duration and severity, it is probable that <strong>the</strong>re would be<br />

fewer sinkholes and well failures than if additional cold protection quantities from<br />

groundwater were permitted that would impact <strong>the</strong> Minimum Aquifer Level Protection<br />

Zone.<br />

Regarding existing permitted cold protection quantities, it is anticipated that feasibility<br />

analyses <strong>of</strong> alternative cold protection methods required under <strong>the</strong> proposed rule and<br />

<strong>the</strong> provision <strong>of</strong> funding <strong>for</strong> alternative cold protection equipment costs will reduce <strong>the</strong><br />

frequency and severity <strong>of</strong> well failure and sinkhole events. The regulatory approach is<br />

described in Chapter 1.2 <strong>of</strong> this SERC. The non-regulatory cost-sharing provisions are<br />

addressed in Chapter 7.2 below. If, at <strong>the</strong> conclusion <strong>of</strong> <strong>the</strong> 5 year review process, <strong>the</strong><br />

goals <strong>of</strong> <strong>the</strong> recovery strategy appear to not be met, <strong>the</strong>n additional regulatory and/or<br />

non-regulatory actions may be required.<br />

More Equitable Distribution <strong>of</strong> <strong>the</strong> Impact <strong>of</strong> Well Complaint Investigations and<br />

Repairs. Ano<strong>the</strong>r issue highlighted by <strong>the</strong> January 2010 freeze event is that <strong>the</strong> current<br />

method <strong>for</strong> allocating permittee well failure investigations and mitigation can cause financial<br />

hardship to newer permittees using cold protection quantities in <strong>the</strong> region. The<br />

investigation and mitigation <strong>of</strong> well failures can be costly. Based on <strong>the</strong> 149 receipts<br />

provided to <strong>the</strong> District <strong>for</strong> repairs inside <strong>the</strong> area in which well mitigation permit conditions<br />

were applied, <strong>the</strong> range <strong>of</strong> costs to repair or replace pumps and wells in a single<br />

investigation can range from less than $20 to more than $10,000 (if <strong>the</strong> pump and well<br />

require replacement). The average receipt was $1,391. 2 The types <strong>of</strong> repairs needed to<br />

address well failures are addressed in Table 7.1. 3 Over $1,200,000 was spent in well<br />

repairs and replacements as a result <strong>of</strong> <strong>the</strong> January 2010 frost / freeze event.<br />

44324-000R4.docx<br />

2 Southwest Florida Water Management District, unpublished dataset file 1_2010_well mitigation<br />

complaints within mitigation area.xslx.<br />

3 Southwest Florida Water Management District, January 3-13, 2010 Frost Freeze Event Public<br />

Workshop presentation, presented September 14, 2010 in <strong>Plant</strong> <strong>City</strong>, Florida.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-3<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Well Status<br />

Table 7.1<br />

Status <strong>of</strong> Wells and Magnitude <strong>of</strong> Repairs That Resulted<br />

From <strong>the</strong> January 2010 Frost / Freeze Event<br />

Within<br />

Mitigation Area<br />

Number <strong>of</strong> Wells<br />

Outside Mitigation<br />

Area<br />

Total<br />

% <strong>of</strong> Total<br />

Complaints<br />

Came back on its own 268 37 305 40.1%<br />

Required minor repair 61 16 77 10.1%<br />

Required major repair 233 45 278 36.6%<br />

New well drilled 26 9 35 4.6%<br />

O<strong>the</strong>r 34 31 65 8.6%<br />

Total Complaints 622 138 760 100.0%<br />

Source: Southwest Florida Water Management District<br />

The results <strong>of</strong> <strong>the</strong> proposed changes in <strong>the</strong> allocation methodology are illustrated in Figures<br />

7-1 (current) and 7-2 (proposed). The current allocation methodology assigns well<br />

complaints to those with <strong>the</strong> most recent permit action, whe<strong>the</strong>r that is <strong>the</strong> issuance <strong>of</strong> a<br />

new permit or modification <strong>of</strong> an existing permit. Under <strong>the</strong> existing method, during <strong>the</strong><br />

January 2010 freeze event, only 61 <strong>of</strong> 504 permittees were required to investigate complaints<br />

and one permittee was assigned over 100 complaints. The proposed methodology<br />

relies more on <strong>the</strong> proportion <strong>of</strong> frost/freeze quantities permitted to <strong>the</strong> individual<br />

grower. In a freeze event similar to <strong>the</strong> January 2010 event under <strong>the</strong> proposed methodology,<br />

it is estimated that <strong>the</strong> complaints would be spread among 360 permittees and<br />

<strong>the</strong> most complaints assigned to an individual would be 16. This represents a significant<br />

reduction in <strong>the</strong> potential <strong>for</strong> catastrophic costs <strong>for</strong> smaller and newer growers 4 and more<br />

equitably allocates well mitigation among all permittees contributing to <strong>the</strong> problem.<br />

Some long-time permittees may be required to investigate complaints under <strong>the</strong> new<br />

methodology that would not have had to under <strong>the</strong> existing methodology but <strong>the</strong>ir exposure<br />

to multiple investigations and repair costs would be limited.<br />

44324-000R4.docx<br />

4 Southwest Florida Water Management District, January 3-13, 2010 Frost Freeze Event Public<br />

Workshop presentation, presented September 14, 2010 in <strong>Plant</strong> <strong>City</strong>, Florida.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-4<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


75<br />

33<br />

Number <strong>of</strong> Complaints<br />

17<br />

12<br />

10<br />

6<br />

2<br />

0<br />

0 31111112211111<br />

0 1 2<br />

3 5<br />

4 9<br />

19<br />

61 out <strong>of</strong> 504 Got All Complaints<br />

Based on Last In. One Permit<br />

Holder Assigned Over 100.<br />

0 50 100 150 200 250 300 350 400 450<br />

Number <strong>of</strong> Permits<br />

443<br />

Figure 7-1<br />

2010 Complaint Allocation Using Existing Methodology<br />

Number <strong>of</strong> Complaints<br />

21<br />

16<br />

13<br />

11<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0<br />

0 11<br />

1 2<br />

1<br />

2<br />

3<br />

5<br />

14<br />

20<br />

40<br />

360 <strong>of</strong> 504 would get Well Complaints Based on<br />

Quantity and Proximity to Problem. Most Assigned<br />

to an Individual Would be 16 <strong>for</strong> Similar Event.<br />

75<br />

144<br />

195<br />

0 50 100 150 200 250<br />

44324-000R4.cdr<br />

Number <strong>of</strong> Permits<br />

Figure 7-2<br />

Distribution <strong>of</strong> Complaints per Permit using New Allocation Method<br />

Figures 7-1 and 7-2<br />

Distribution <strong>of</strong> Complaints Using Existing Methodology vs New Allocation Method


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

7.2 Non-<strong>Regulatory</strong> Approach<br />

To achieve <strong>the</strong> goals <strong>of</strong> <strong>the</strong> recovery strategy, <strong>the</strong> District is employing both a regulatory<br />

and a non-regulatory approach to address frost/freeze withdrawal impacts in <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong><br />

<strong>City</strong> area. During rule development, <strong>the</strong> District considered many options including:<br />

(1) an across <strong>the</strong> board reduction in water quantities; (2) requiring water use permittees<br />

to obtain insurance to cover mitigation costs; and (3) relying on existing rules to deny<br />

permits on a permit-by-permit, case-by-case basis. However, <strong>the</strong> District believed that<br />

<strong>the</strong> economic cost to permittees would be too great and opted <strong>for</strong> a regulatory program<br />

that does not reduce quantities on existing permits and sets a reduction goal <strong>of</strong> 20 percent<br />

over 10 years.<br />

Relying solely on a regulatory approach, such as across <strong>the</strong> board cuts in frost/freeze<br />

quantities or limiting <strong>the</strong> duration <strong>of</strong> allowable pumping during frost freeze events could<br />

have a significant impact on <strong>the</strong> agricultural and overall economy <strong>of</strong> <strong>the</strong> area. Unlike<br />

some o<strong>the</strong>r crops that can be insured against natural disasters such as hail, <strong>the</strong>re is no<br />

“freeze event” subsidized crop insurance <strong>for</strong> strawberries, <strong>the</strong> main crop in <strong>the</strong> area. Fur<strong>the</strong>r,<br />

such insurance generally requires <strong>the</strong> grower to make every ef<strong>for</strong>t to protect <strong>the</strong><br />

crop, including pumping groundwater. The grower would be responsible <strong>for</strong> any losses<br />

due to freezes. There<strong>for</strong>e <strong>the</strong> grower will utilize permitted frost/freeze protection water<br />

quantities and/or a financially feasible alternative means to protect <strong>the</strong> crop.<br />

The regulatory provisions <strong>of</strong> <strong>the</strong> recovery strategy are designed primarily to restrict any<br />

increase in impact from frost / freeze withdrawals on groundwater levels in <strong>the</strong> Minimum<br />

Aquifer Level Protection Zone. This is accomplished by restricting increases in<br />

frost/freeze protection groundwater quantities so that water levels would not be lowered<br />

even fur<strong>the</strong>r during frost/freeze events. To some extent, frost/freeze protection groundwater<br />

quantities may be reduced through rule provisions such as “net benefit” where a<br />

specified portion <strong>of</strong> groundwater withdrawal reductions are reserved to protect <strong>the</strong> aquifer<br />

level.<br />

44324-000R4.docx<br />

The primary method <strong>for</strong> reducing existing groundwater withdrawals in and around <strong>the</strong><br />

Minimum Aquifer Level Protection zone will be non-regulatory. The focus <strong>of</strong> this ef<strong>for</strong>t is<br />

to provide fur<strong>the</strong>r incentives <strong>for</strong> water users to adopt technologies that reduce<br />

frost/freeze protection groundwater withdrawals such as <strong>the</strong> use <strong>of</strong> tailwater recovery<br />

systems and protection methods o<strong>the</strong>r than water such as crop cloths and crop enclosures.<br />

These alternatives are generally more expensive to <strong>the</strong> water use permittee than<br />

<strong>the</strong> use <strong>of</strong> groundwater <strong>for</strong> frost/freeze protection. The enhanced incentives will mainly<br />

come in <strong>the</strong> <strong>for</strong>m <strong>of</strong> a higher percentage <strong>of</strong> District cost-sharing <strong>of</strong> projects designed to<br />

replace groundwater withdrawals <strong>for</strong> frost/freeze protection through <strong>the</strong> Facilitating Agricultural<br />

Resource Management Systems (FARMS) program. The projects constructed<br />

under <strong>the</strong> FARMS program in 2008 and 2009 are provided in Table 7.2.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-5<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

44324-000R4.docx<br />

Table 7.2<br />

Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009<br />

No. County Project Components Crop Type<br />

1 Charlotte Use alternative surface water supplies.<br />

Construct surface water reservoir.<br />

2 Charlotte Install a surface-water pumping station,<br />

controls, filtration, and mainline pipe<br />

connecting <strong>the</strong> existing irrigation system.<br />

3 Charlotte Use a network <strong>of</strong> solar-powered field<br />

sensors uplinked to <strong>the</strong> Internet to monitor<br />

soil parameters and climate conditions<br />

that will enable <strong>the</strong> grower to optimize<br />

irrigation scheduling, prevent<br />

over-watering and improve crop yields.<br />

4 Charlotte Use wireless instrumentation and sensors<br />

to monitor soil moisture and climate<br />

conditions in <strong>the</strong> grove environment.<br />

5 Charlotte Install hydraulic valves which will be<br />

controlled by a timer at each irrigation<br />

zone, a cut-<strong>of</strong>f switch <strong>for</strong> <strong>the</strong> single<br />

power unit, and a rain sensor to shut<br />

down <strong>the</strong> system during rainfall events.<br />

6 Charlotte Use probes and electronic components<br />

to remotely monitor real-time soil moisture<br />

conditions.<br />

7 Charlotte Construct and operate reservoir; retr<strong>of</strong>it<br />

2 surface water irrigation pump stations,<br />

automated pumps controlled by soil<br />

moisture probes and rain monitoring<br />

devices.<br />

8 Charlotte Construct a surface water pump station,<br />

with associated filters and mainline piping,<br />

to withdrawal water directly from<br />

Shell Creek.<br />

9 Citrus Construct 1 surface-water irrigation<br />

pump station, filtration, and piping to<br />

connect surface-water reservoir system<br />

to existing irrigation system.<br />

Crop<br />

Acres<br />

Ground<br />

Water<br />

Saved,<br />

gpd<br />

Total<br />

Project<br />

Cost<br />

Citrus 688 181,200 $850,000<br />

Citrus 160 80,000 $253,350<br />

Citrus 696 26,700 $28,000<br />

Citrus 688 27,170 $17,868<br />

Citrus 430 23,790 $50,000<br />

Citrus 15 835 $3,659<br />

Citrus 1,113 826,000 $1,000,000<br />

Citrus 40 55,200 $160,000<br />

Blueberry 10 NA $80,000<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-6<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Table 7.2<br />

Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009<br />

No. County Project Components Crop Type<br />

Crop<br />

Acres<br />

Ground<br />

Water<br />

Saved,<br />

gpd<br />

Total<br />

Project<br />

Cost<br />

10 Desoto<br />

Construct and operate a 5-acre surface<br />

water irrigation reservoir, 1 surface water<br />

irrigation pump station, filtration, and<br />

piping necessary to connect surface<br />

water reservoir system to existing irrigation<br />

system.<br />

Citrus 1,615 92,300 $440,000<br />

11 Desoto Construct and operate a linear surfacewater<br />

irrigation reservoir, 1 surfacewater<br />

irrigation pump station, filtration,<br />

and <strong>the</strong> mainline piping to connect <strong>the</strong><br />

reservoir to a more efficient microjet<br />

irrigation system.<br />

12 Desoto Construct 2 surface-water reservoirs<br />

and <strong>the</strong> construction <strong>of</strong> 2 surface-water<br />

irrigation pump stations, filtration, and<br />

piping to connect proposed surface water<br />

reservoirs to existing irrigation system.<br />

13 Desoto Construct a 2-acre reservoir (within an<br />

existing stormwater and tailwater retention<br />

area), surface water irrigation pump<br />

station, filtration, and piping to connect<br />

<strong>the</strong> surface water reservoir system to<br />

<strong>the</strong> existing irrigation system.<br />

14 Desoto Construct and operate a 1-acre surface<br />

water irrigation reservoir, 1 surface water<br />

irrigation pump station, filtration, and<br />

piping to connect surface water reservoir<br />

system to existing irrigation system.<br />

15 Desoto Collect and reuse tailwater and construct<br />

a 1-acre reservoir, 1 surface water<br />

irrigation pump station, filtration, and<br />

piping to connect surface water reservoir<br />

to existing irrigation system.<br />

Citrus 111 225,100 $175,000<br />

Sod 80 129,000 $170,000<br />

Blueberry 72 100,000 $380,000<br />

Blueberry 40 48,600 $280,000<br />

Strawberry 33 53,340 $150,000<br />

16 Desoto Construct 2 surface water irrigation<br />

pump stations, filtration and piping to<br />

connect existing surface water reservoir<br />

system to existing irrigation system.<br />

44324-000R4.docx<br />

NA 526 76,980 $371,288<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-7<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

44324-000R4.docx<br />

Table 7.2<br />

Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009<br />

No. County Project Components Crop Type<br />

17 Desoto Capture and reuse surface water and<br />

tailwater from an existing reservoir to<br />

irrigate a 470 acre block <strong>of</strong> citrus at <strong>the</strong><br />

grove site.<br />

18 Desoto Use solar powered field sensors and<br />

radio telemetry to monitor soil parameters<br />

and climate conditions<br />

19 Desoto Install two wea<strong>the</strong>r stations, soil moisture<br />

sensors, and automated pump controls<br />

20 Desoto Use probes and electronic components<br />

to remotely monitor real-time soil moisture<br />

conditions.<br />

21 Desoto Install two wea<strong>the</strong>r stations, soil moisture<br />

sensors, and automated pump controls.<br />

22 Hardee Install two surface water pumping stations,<br />

controls, filtration, and mainline<br />

pipe to connect to <strong>the</strong> irrigation system,<br />

and install a wea<strong>the</strong>r station to enable<br />

<strong>the</strong> grower to optimize irrigation scheduling.<br />

23 Hardee Install a surface water pumping station,<br />

controls, filtration, mainline pipe to <strong>the</strong><br />

irrigation system, and a crossconnection<br />

to <strong>the</strong> irrigation system servicing<br />

a portion <strong>of</strong> <strong>the</strong> nearby citrus<br />

grove operation.<br />

24 Hardee Provide updates to an existing system<br />

<strong>of</strong> wea<strong>the</strong>r and soil moisture monitoring<br />

stations <strong>for</strong> real-time monitoring.<br />

25 Hardee Install four soil-moisture probes and two<br />

wea<strong>the</strong>r stations to monitor localized<br />

irrigation demands and climatic conditions.<br />

26 Hardee Install two soil-moisture probes and a<br />

wea<strong>the</strong>r station to monitor localized irrigation<br />

demands and climatic conditions.<br />

Crop<br />

Acres<br />

Ground<br />

Water<br />

Saved,<br />

gpd<br />

Total<br />

Project<br />

Cost<br />

Citrus 470 348,400 $617,550<br />

Citrus /<br />

Turf sod<br />

Citrus /<br />

Sod<br />

2,150 57,885 $40,628<br />

1,460 180,700 $270,000<br />

Citrus 215 8,680 $7,319<br />

Blueberry 157 25,000 $95,600<br />

Blueberry 80 72,200 $353,394<br />

Blueberry 50 64,000 $340,666<br />

Citrus 3,050 109,900 $8,655<br />

Citrus 1,170 45,515 $34,375<br />

Citrus 444 29,485 $19,090<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-8<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Table 7.2<br />

Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009<br />

No. County Project Components Crop Type<br />

Crop<br />

Acres<br />

Ground<br />

Water<br />

Saved,<br />

gpd<br />

Total<br />

Project<br />

Cost<br />

27 Hardee Use an integrated system that includes<br />

soil moisture sensors and telemetry.<br />

The existing irrigations system already<br />

has automated valves and <strong>the</strong> ability to<br />

turn <strong>of</strong>f <strong>the</strong> pump remotely.<br />

28 Highlands Use integrated irrigation system including<br />

soil moisture sensors connected to<br />

automatic valve controllers to reduce<br />

frequency and duration <strong>of</strong> irrigation.<br />

Caladiums 330 60,000 $132,000<br />

Citrus 1,315 87,800 $80,000<br />

29 Hillsborough Construct and operate 2, 3-acre tailwater<br />

recovery and surface water irrigation<br />

reservoirs including 2 surface water irrigation<br />

pump stations, filtration, and <strong>the</strong><br />

piping necessary to connect <strong>the</strong> proposed<br />

surface water reservoir system to<br />

<strong>the</strong> existing irrigation system.<br />

30 Hillsborough Install and automate 3 surface water<br />

irrigation pump stations, filtration, and<br />

piping to connect designed tailwater<br />

interception and surface water reservoir<br />

system to existing irrigation system.<br />

Strawberry<br />

/ Row<br />

crops<br />

Strawberry<br />

/ Row<br />

crops<br />

100 60,800 $335,470<br />

55 140,250 $730,000<br />

31 Hillsborough Construct a Tailwater Recovery and<br />

Surface Water Irrigation Reservoir<br />

32 Hillsborough Collect and use stormwater run<strong>of</strong>f from<br />

about 3 acres <strong>of</strong> proposed greenhouse<br />

ro<strong>of</strong>s <strong>for</strong> irrigation. Collect and recirculate<br />

excess irrigation water from <strong>the</strong> hydroponic<br />

vegetables growing inside <strong>the</strong><br />

greenhouses. Components include multiple<br />

stormwater collection tanks and<br />

piping to connect rainwater cisterns to<br />

hydroponic irrigation system.<br />

Strawberry 32 112,500 $225,000<br />

Vegetables NA 12,060 $100,000<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-9<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Table 7.2<br />

Summary <strong>of</strong> <strong>the</strong> District's FARMS Projects in 2008 and 2009<br />

No. County Project Components Crop Type<br />

Crop<br />

Acres<br />

Ground<br />

Water<br />

Saved,<br />

gpd<br />

Total<br />

Project<br />

Cost<br />

33 Manatee Construct retention <strong>for</strong> irrigation and<br />

stormwater run<strong>of</strong>f as well as a seepage<br />

interception system along <strong>the</strong> farm<br />

boundary including culverts with risers<br />

to retain water in a series <strong>of</strong> six stairstepped<br />

storage areas; about 5,700 feet<br />

<strong>of</strong> drainpipe; an automatically operated<br />

pump station; and about 5,500 feet <strong>of</strong><br />

pressure pipe to convey seepage water<br />

to an upgradient storage area and a<br />

network <strong>of</strong> data loggers to record water<br />

levels both inside <strong>the</strong> farm and outside<br />

<strong>the</strong> seepage interception system.<br />

34 Manatee Construct and operate a 5-acre surface<br />

water irrigation reservoir, 1 surface water<br />

irrigation pump station, filtration, and<br />

piping to connect surface water reservoir<br />

system to existing irrigation system.<br />

35 Polk Install an integrated irrigation system<br />

including a wea<strong>the</strong>r station, soil moisture<br />

sensors, and automated pump controls<br />

to reduce <strong>the</strong> number and duration<br />

<strong>of</strong> irrigation events.<br />

36 Polk Install an on-site wea<strong>the</strong>r station that<br />

controls <strong>the</strong> operation <strong>of</strong> a network <strong>of</strong><br />

automated hydraulic irrigation valves,<br />

based on localized climatic conditions.<br />

Tomato 1,240 100,000 $250,000<br />

Citrus 245 70,500 $350,000<br />

Citrus 949 68,935 $10,000<br />

Nursery 62 27,200 $21,973<br />

37 Polk Convert 110-acres <strong>of</strong> <strong>the</strong> blueberry irrigation<br />

system from overhead sprinkler<br />

to double row drip tape <strong>for</strong> crop production.<br />

NA means Not Available.<br />

Blueberry 110 134,175 $352,000<br />

Sources: Southwest Florida Water Management District, Facilitating Agricultural Resource Management Systems<br />

(FARMS), "2008 Annual Report" dated February 2009 and "2009 Annual Report" dated June 2010, Brooksville,<br />

Florida.<br />

44324-000R4.docx<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-10<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


7.0 ADDITIONAL INFORMATION JANUARY 2011<br />

Prior to <strong>the</strong> frost/freeze event <strong>of</strong> 2010, <strong>the</strong> District’s percentage cost share <strong>of</strong> agricultural<br />

projects to reduce Floridan aquifer withdrawals in <strong>the</strong> area was limited to 50 percent unless<br />

<strong>the</strong> project also improved water quality. Revisions to <strong>the</strong> FARMS rule (40D-26,<br />

F.A.C.) which was approved by <strong>the</strong> District’s Governing Board will specifically allow reductions<br />

in frost/freeze groundwater withdrawals to be counted in cost effectiveness calculations<br />

to increase <strong>the</strong> likelihood that such projects will qualify <strong>for</strong> cost sharing. In addition,<br />

<strong>the</strong> District’s share <strong>of</strong> <strong>the</strong> eligible project costs was increased from 50 percent to 75<br />

percent. The intent is to make frost/freeze protection groundwater reduction projects<br />

more financially feasible to growers and provide a significant reduction in permitted<br />

ground water withdrawals in and around <strong>the</strong> DPC WUCA over time. The District anticipates<br />

spending approximately $2.2 million per year over <strong>the</strong> next 10 years to reduce<br />

frost/freeze quantities permitted from <strong>the</strong> Upper Floridan aquifer. 5<br />

The revised FARMS rule contained in 40D-26, F.A.C. is reprinted below in strikeout<br />

(Old) and underline (New) <strong>for</strong>mat to highlight <strong>the</strong> changes approved by <strong>the</strong> District’s Governing<br />

Board.<br />

44324-000R4.docx<br />

5 The $2.2 million per year is <strong>the</strong> District’s estimate <strong>of</strong> <strong>the</strong> amount <strong>of</strong> District funding needed to reduce<br />

<strong>the</strong> amount <strong>of</strong> water pumped <strong>for</strong> frost / freeze protection during <strong>the</strong> 2010 freeze event by 20 percent if<br />

<strong>the</strong> reduction was accomplished using tailwater recovery systems.<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT Page 7-11<br />

SERC FOR DOVER / PLANT CITY WUCA RULE<br />

HAZEN AND SAWYER, P.C.


RULES OF THE<br />

SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT<br />

CHAPTER 40D-26<br />

FACILITATING AGRICULTURAL RESOURCE MANAGEMENT SYSTEMS (FARMS) PROGRAM<br />

40D-26.011 Policy and Purpose.<br />

40D-26.021 Definition<br />

40D-26.091 Publications Incorporated by Reference.<br />

40D-26.101 Conditions <strong>of</strong> Eligibility.<br />

40D-26.201 Program Application.<br />

40D-26.301 Eligibility Determination.<br />

40D-26.401 Cost-Share Rates.<br />

40D-26.011 Policy and Purpose.<br />

(1) The purpose <strong>of</strong> <strong>the</strong> Facilitating Agricultural Resource Management Systems (FARMS) Program is to expedite <strong>the</strong><br />

implementation <strong>of</strong> water resource development and alternative water supply development projects by providing funding assistance<br />

<strong>for</strong> <strong>the</strong> development <strong>of</strong> production-scale Best Management Practices (BMPs) <strong>for</strong> agriculture that will result in reductions in water<br />

use and improvements in water quality and to natural systems within <strong>the</strong> District.<br />

(2) This chapter sets <strong>for</strong>th <strong>the</strong> procedures <strong>for</strong> <strong>the</strong> FARMS Program and <strong>the</strong> requirements <strong>for</strong> obtaining funding assistance.<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09.<br />

40D-26.021 Definitions.<br />

When used in this chapter:<br />

(1) “Agriculture” means <strong>the</strong> science and art <strong>of</strong> production <strong>of</strong> plants and animals and includes aquaculture, horticulture,<br />

floriculture, viticulture, <strong>for</strong>estry, nurseries, dairy, livestock, poultry, bees, and any and all <strong>for</strong>ms <strong>of</strong> farm products and farm<br />

production.<br />

(2) “Best Management Practice” means a practice or combination <strong>of</strong> practices based on research, field-testing, and expert<br />

review, to be <strong>the</strong> most practicable on-location means, including economic and technological considerations, <strong>for</strong> improving water<br />

conservation and quality in agricultural discharges. BMPs <strong>for</strong> agricultural discharges shall reflect a balance between water resource<br />

improvements and agricultural productivity.<br />

(3) “District” means <strong>the</strong> Southwest Florida Water Management District.<br />

(4) “Equipment” means <strong>the</strong> tangible items and components <strong>of</strong> a project including s<strong>of</strong>tware and internet services <strong>for</strong> <strong>the</strong> first year<br />

<strong>of</strong> a project’s operation.<br />

(5) “Model Farms <strong>Costs</strong>” means those estimated costs developed to identify reasonable costs associated with implementing<br />

various water conservation methods by a variety <strong>of</strong> agricultural operations as set <strong>for</strong>th in Tables A-1 through A-18 <strong>of</strong> <strong>the</strong> Model<br />

Farms Economic Update <strong>the</strong> District’s 2001 Model Farms <strong>Costs</strong> incorporated herein by reference in Rule 40D-26.091, F.A.C.<br />

(6) “Program” means <strong>the</strong> Facilitating Agricultural Resource Management Systems Program described in this chapter.<br />

(7) “Project Area” means <strong>the</strong> land upon which <strong>the</strong> components <strong>of</strong> <strong>the</strong> BMPs are located and includes <strong>the</strong> land to be served by a<br />

project.<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09, Amended<br />

_______.<br />

40D-26.091 Publications Incorporated by Reference.<br />

The following document is hereby incorporated by reference into this chapter and is available from <strong>the</strong> District upon request:<br />

Southwest Florida Water Management District’s Facilitating Agricultural Resource Management Systems (FARMS) Program Model<br />

Farms Economic Update 2001 Model Farms <strong>Costs</strong> (effective date June 2009 August 1, 2001).<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09, Amended<br />

_______.


40D-26.101 Conditions <strong>of</strong> Eligibility.<br />

(1) Agricultural operations located within <strong>the</strong> District that are in compliance with <strong>the</strong> District’s Environmental Resource<br />

Permitting rules in Chapters 40D-4, 40D-40 and 40D-400, F.A.C., and <strong>the</strong> District’s Water Use Permitting rules in Chapter 40D-2,<br />

F.A.C., District issued permits and District funding agreements and that have been operational <strong>for</strong> <strong>the</strong> preceding 3 years are eligible<br />

<strong>for</strong> <strong>the</strong> Program. Agricultural operations less than 3 years old are eligible if <strong>the</strong> project will result in a reduction in <strong>the</strong> use <strong>of</strong> ground<br />

water. A project shall not be eligible if <strong>the</strong> applicant previously received Program funds and construction <strong>of</strong> <strong>the</strong> funded project has<br />

not commenced.<br />

(2) The following projects are eligible <strong>for</strong> <strong>the</strong> Program:<br />

(a) Implementation <strong>of</strong> BMPs that reduce withdrawals from <strong>the</strong> Upper Floridan aquifer or from any combination <strong>of</strong> ground,<br />

surface or reclaimed water sources and have a cost-benefit that is equal to or less than <strong>the</strong> Model Farms <strong>Costs</strong>; however no more<br />

than 5% <strong>of</strong> frost/freeze protection quantities authorized by a District Water Use Permit shall be used in calculating <strong>the</strong> amount <strong>of</strong><br />

water no longer withdrawn from <strong>the</strong> Upper Floridan aquifer in areas outside <strong>of</strong> <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> Water Use Caution Area.<br />

(b) Implementation <strong>of</strong> BMPs that improve ground or surface water quality impacted by ground water withdrawals.; and<br />

(c) Implementation <strong>of</strong> BMPs that improve natural systems functions within <strong>the</strong> Upper Myakka River Watershed.<br />

(d) Implementation <strong>of</strong> BMPs that reduce frost/freeze protection withdrawals authorized by a District Water Use Permit from <strong>the</strong><br />

Upper Floridan aquifer within <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> Water Use Caution Area.<br />

(3) Projects that retr<strong>of</strong>it or upgrade an irrigation system shall be eligible only if <strong>the</strong> applicant previously applied <strong>for</strong> funding<br />

assistance under <strong>the</strong> United States Department <strong>of</strong> Agriculture, Natural Resources Conservation Service’s Environmental Quality<br />

Incentives Program within <strong>the</strong> preceding 3 years and that o<strong>the</strong>rwise meet <strong>the</strong> requirements <strong>of</strong> this rule.<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09, Amended<br />

________.<br />

40D-26.201 Program Application.<br />

(1) Applicants shall consult with District FARMS Program staff at a pre-application meeting to discuss proposed projects be<strong>for</strong>e<br />

submitting <strong>the</strong>ir applications.<br />

(2) Applicants <strong>for</strong> funding shall submit to <strong>the</strong> District <strong>the</strong> in<strong>for</strong>mation required on District Form LEG-R.22.021 (84/0910), titled<br />

Facilitating Agricultural Resource Management Systems Program Funding Application Form, adopted and incorporated by reference<br />

in this rule. This <strong>for</strong>m is available from <strong>the</strong> District’s website at www.watermatters.org or from <strong>the</strong> District upon request.<br />

(3) Applications <strong>for</strong> leased property shall be a joint application signed by <strong>the</strong> lessee and property owner. If <strong>the</strong>re are multiple<br />

owners, all owners shall sign <strong>the</strong> application <strong>for</strong>m or sign an attachment to <strong>the</strong> application <strong>for</strong>m indicating <strong>the</strong>y join in <strong>the</strong><br />

application.<br />

Rulemaking Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09, Amended<br />

8-30-09, _________.<br />

40D-26.301 Eligibility Determination.<br />

(1) The District shall fund projects that meet all conditions <strong>of</strong> eligibility set <strong>for</strong>th in Rule 40D-26.101, F.A.C., subject to<br />

available funding. If <strong>the</strong> District receives completed applications <strong>for</strong> projects that exceed available funding, <strong>the</strong> District shall first<br />

fund those projects that qualify <strong>for</strong> a 75% cost-share rate as set <strong>for</strong>th in paragraph 40D-26.401(1)(b), F.A.C., and <strong>the</strong>n those projects<br />

that have <strong>the</strong> greatest reduction in withdrawals from <strong>the</strong> Upper Floridan aquifer, provided <strong>the</strong>re are sufficient funds to fully fund<br />

each project as set <strong>for</strong>th in Rule 40D-26.401, F.A.C. A complete application means that all in<strong>for</strong>mation in Rule 40D-26.201, F.A.C.,<br />

has been submitted with sufficient detail <strong>for</strong> <strong>the</strong> District to determine eligibility.<br />

(2) The District shall notify an applicant in writing as to whe<strong>the</strong>r a project is eligible. The notice shall constitute agency action<br />

subject to <strong>the</strong> provisions <strong>of</strong> Chapter 120, F.S. If <strong>the</strong> District denies eligibility, <strong>the</strong> notice <strong>of</strong> denial shall specify <strong>the</strong> reasons <strong>for</strong> <strong>the</strong><br />

denial.<br />

(3) If an application is funded, all property owners and lessees shall enter into a legally binding agreement with <strong>the</strong> District.<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.083(1), 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09.


40D-26.401 Cost-Share Rates.<br />

(1) The District’s cost-share rate <strong>for</strong> a funded project shall be based upon a project’s resource benefit as follows:<br />

(a) Equipment costs shall be reimbursed up to a maximum <strong>of</strong> 50% <strong>of</strong> <strong>the</strong> total project cost when a project:<br />

1. Reduces withdrawals from <strong>the</strong> Upper Floridan aquifer by less than 50%;<br />

2. Reduces withdrawals from any combination <strong>of</strong> ground, surface or reclaimed water sources;<br />

3. Improves ground or surface water quality impacted by ground water withdrawals; or<br />

4. Improves natural system functions within <strong>the</strong> Upper Myakka River Watershed.<br />

(b) Equipment costs shall be reimbursed up to a maximum <strong>of</strong> 75% <strong>of</strong> <strong>the</strong> total project cost when a project:<br />

1. Reduces withdrawals from <strong>the</strong> Upper Floridan aquifer by 50% or more; or<br />

2. Reduces withdrawals by 15% or more from any combination <strong>of</strong> ground, surface or reclaimed water sources <strong>of</strong> which a<br />

minimum <strong>of</strong> 5% <strong>of</strong> <strong>the</strong> total withdrawal reduction is from <strong>the</strong> Upper Floridan aquifer and <strong>the</strong> project improves water quality in<br />

surface or ground water impacted by ground water withdrawals or improves natural system functions within <strong>the</strong> Upper Myakka<br />

River Watershed; or.<br />

3. Reduces frost/freeze protection withdrawals authorized by a District Water Use Permit from <strong>the</strong> Upper Floridan aquifer<br />

within <strong>the</strong> <strong>Dover</strong>/<strong>Plant</strong> <strong>City</strong> Water Use Caution Area.<br />

(2) Only costs <strong>for</strong> Equipment procured in accordance with <strong>the</strong> terms <strong>of</strong> <strong>the</strong> agreement between <strong>the</strong> applicant and <strong>the</strong> District<br />

shall be eligible <strong>for</strong> reimbursement.<br />

(3) Applicants shall fund a minimum <strong>of</strong> 25% <strong>of</strong> <strong>the</strong> total project cost exclusive <strong>of</strong> any funding provided by o<strong>the</strong>r sources.<br />

(4) For purposes <strong>of</strong> this rule, costs associated with a project’s excavation activities shall not be included in <strong>the</strong> total cost <strong>of</strong> <strong>the</strong><br />

project; however, <strong>the</strong>se costs shall count towards applicant’s minimum 25% funding requirement if as-built construction drawings<br />

certified by a licensed pr<strong>of</strong>essional engineer or surveyor are provided to <strong>the</strong> District and <strong>the</strong>n to <strong>the</strong> following extent:<br />

(a) 100% <strong>of</strong> <strong>the</strong> costs if excavated material will not be removed from owner’s property.<br />

(b) 50% <strong>of</strong> <strong>the</strong> costs if excavated material will be removed from owner’s property.<br />

Specific Authority 373.044, 373.113, 373.171 FS. Law Implemented 373.0831(3), 373.196(1), 373.1961(3) FS. History–New 1-7-09, Amended<br />

________.<br />

40D-1.659 Forms and Instructions.<br />

The following <strong>for</strong>ms and instructions have been approved by <strong>the</strong> Governing Board and are incorporated by reference into this<br />

chapter or into a specific District rule as indicated. Copies <strong>of</strong> <strong>the</strong>se <strong>for</strong>ms may be obtained from <strong>the</strong> District <strong>of</strong>fices or <strong>the</strong> District’s<br />

website at www.watermatters.org.<br />

(3) OTHER<br />

(a) No change.<br />

(b) FACILITATING AGRICULTURAL RESOURCE MANAGEMENT (FARMS) SYSTEMS PROGRAM FUNDING<br />

APPLICATION FORM, FORM LEG-R.22.022 (8/10) LEG-R.22.021 (4/09), incorporated by reference in subsection 40D-<br />

26.201(2), F.A.C.<br />

(c) – (d) No Change.<br />

Rulemaking Authority 373.044, 373.113, 373.149, 373.171, 373.337 FS. Law Implemented 373.083, 373.0831(3), 373.083(5), 373.116, 373.196(1),<br />

373.1961(3), 373.206, 373.207, 373.209, 373.216, 373.219, 373.229, 373.239, 373.306, 373.308, 373.309, 373.313, 373.323, 373.324, 373.413,<br />

373.414, 373.416, 373.419, 373.421, 668.50 FS. History–New 12-31-74, Amended 10-24-76, Formerly 16J-0.40, 40D-1.901, 40D-1.1901,<br />

Amended 12-22-94, 5-10-95, 10-19-95, 5-26-96, 7-23-96, 2-16-99, 7-12-99, 7-15-99, 12-2-99, 5-31-00, 9-3-00, 10-26-00, 6-26-01, 11-4-01, 6-12-<br />

02, 8-25-02, 2-26-03, 9-14-03, 9-30-04, 2-1-05, 6-5-05, 10-19-05(1) and (2), 10-19-05(5), 10-19-05(20), 2-6-07, 9-27-07, 11-11-07, 11-25-07, 1-8-<br />

08, 4-7-08, 5-12-08, 5-20-08, 8-19-08, 12-30-08, 3-26-09, 7-1-09, 8-30-09, 9-1-09, 10-26-09, 1-27-10, 4-12-10, 4-27-10,_________.

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