Section 373.4145, F.S., requires the Department, in coordination with the Northwest Florida Water Management District (NWFWMD), to develop rules in a two-phase approach to implement the environmental resource permit (ERP) program under Part IV of Chapter 373, F.S., within the geographic limits of the Northwest Florida Water Management District (the “Panhandle”). In accordance with Section 373.4145(1)(a), F.S., the first phase of that rulemaking (known as the “Phase 1 rules”), which became effective on October 1, 2007, is limited to regulating the construction, operation, alteration, maintenance, abandonment, and removal of stormwater management systems within the Panhandle. The purpose of this Notice is to announce that the Department, in coordination with the NWFWMD, is now ready to initiate rule development on Phase 2 of the ERP rules in the Panhandle in accordance with Section 373.4145(1)(b), F.S. The Phase 2 rulemaking will involve amendments to Chapter 62-346, F.A.C., to add environmental criteria to the Phase 1 rules, including regulation of dredging and filling in, on, or over connected and isolated wetlands and other surface waters. In accordance with Section 373.4145(1)(b), F.S., these rules must improve the management and storage of surface waters with minimal impact on property interests, and in consideration of the rural nature, current development trends, and abundant natural resources within the NWFWMD relative to the permitting thresholds and requirements. Such rules also: (1) Must pursue streamlining of the federal and state wetland permitting programs pursuant to Sections 373.4143, F.S., and 373.4144, F.S.; (2) Implement other streamlining measures to the maximum extent possible, such as electronic permitting, field permitting, and informal wetland determinations; (3) Incorporate exemptions specified in Section 373.4145(3), F.S.; and (4) Incorporate provisions for activities that will continue to be governed under Chapters 62-25 and 62-312, F.A.C., in accordance with Section 373.4145(6), F.S. This rulemaking will include amendments to Applicant’s Handbook Volumes I and II, which are incorporated by reference in Chapter 62-346, F.A.C. Applicant’s Handbook Volume I contains a discussion of the procedures and general criteria used in Chapter 62-346, F.A.C.; it will be amended to add new environmental criteria. Applicant’s Handbook Volume II addresses the design and performance standards for stormwater management systems; it is expected to be amended to address issues that are identified during implementation of the Phase 1 rules. This rulemaking also may include amendments to the “Operating Agreement Concerning Regulation Under Part IV, Chapter 373, F.S., Between Northwest Florida Water Management District and Department of Environmental Protection” and concurrent amendments to Chapter 62-341, F.A.C., to add or amend certain noticed general permits. In accordance with Section 373.4145(1)(b), F.S., the Phase 2 rules cannot go into effect any earlier than January 1, 2008. When the Phase 2 rules go into effect, the wetland resource permitting program under Chapter 62-312, F.A.C., that regulates dredging and filling in surface waters of the state will no longer be in effect, except for certain activities in accordance with Section 373.4145(6), F.S.