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Florida Administrative Code (Last Updated: July 17, 2024) |
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62. Department of Environmental Protection |
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D62. Departmental |
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62-306. Water Quality Credit Trading |
1(1) A credit buyer must submit 7to the Department information on 12the term of the trade, the number of credits traded, 22documentation to calculate the credits generated for the trade, 31the date when the credits will be generated, 39the timeframe the credits will be applied under the trade, 49the unit price 52for each purchased credit, 56and the amount of any state funding used to generate the credits traded. 69The 70credit buyer must submit the trade information to 78the Department on Form 62-306(2), “Water Quality Credit Trading Affidavit” effective December 2015 91(92https://www.flrules.org/Gateway/reference.asp?No=Ref-0631594), which 96is adopted and incorporated 100by reference herein103. Copies of the form, 108which must be signed by the credit seller and credit buyer, 119may be obtained by writing to the Florida Department of Environmental Protection, 2600 Blair Stone Road (MS #3510), Tallahassee, FL 32399.
140(2) The Department will determine whether the seller has credits available in accordance with this chapter.
156(3) The Department will notify the buyer within thirty days of receipt of the signed Form 62-306(2) if the buyer has not provided the information required to determine the number of credits available for the trade. After the buyer provides all of the required information, the Department will determine in accordance with this chapter whether the seller has a sufficient number of credits available for the trade.
223(4) A water quality credit trade will become effective once the trade is authorized in the BMAP, RAP, or individual wastewater permit.
245(5) If the buyer subsequently 250proposes 251to change the source of credits, the buyer must submit a new Water Quality Credit Trading Affidavit 268and obtain 270the Department’s 272written authorization 274that the 276proposed 277seller has 279sufficient 280credits available.
282(6) Credit sellers shall maintain records demonstrating that the control devices and systems, technologies, BMPs, land use changes, or other management actions upon which credits are based continue to be fully implemented and properly operated and maintained throughout the period of the trade. The records shall be retained for five years after conclusion of the period covered by the trade. Each seller shall allow the Department, or an agent of the Department, to inspect the records and the control devices and systems, technologies, BMPs, land use changes, or other management actions during regular business hours.
377(7) Use of Location Factors 382to Adjust Credits385.
386(a) For trades where the seller and buyer discharge to different WBIDs, the amount of credits proposed to be traded shall be adjusted by the applicable LF to provide reasonable assurance that the proposed trade does not result in localized adverse impacts to the waterbody or water segment.
434(b) The number of credits needed for a proposed trade shall be calculated as follows: Number of Credits Needed = (Number of Pounds or Kilograms Needed) x (LF for Buyer’s WBID/LF for Seller’s WBID).
468(c) This formula may not be used to reduce the number of credits needed below the number of pounds or kilograms needed.
490(8) Use of Uncertainty Factors 495to Adjust Credits498.
499(a) For proposed trades involving estimated credits, the Department shall use default UF ratios of 2:1 for urban stormwater (if 2 pounds or kilograms of removal are estimated, 1 pound of credit will be created) and 3:1 for agricultural runoff, 539unless the Department established the nutrient reduction capability of the activity in the applicable BMAP or RAP, excluding any nutrient reduction capabilities identified as provisional in the BMAP or RAP569. However, 571a buyer or seller 575may propose 577and document the basis for 582a lower UF ratio 586to the Department 589if justified by site-specific considerations.
594(b) Site-specific UF will be based on 601the Department’s 603best professional judgment, taking into account the scientific support for the estimate, the level of confidence that the BMP will be properly designed, installed, maintained, the potential for failure of the BMP, 635and the level of uncertainty that the estimated load reduction will be achieved648.
649Rulemaking Authority 651403.067(9) FS. 653Law Implemented 655403.067(8)-656(10) FS. History–New 9-6-10, Amended 1-11-16.
