Florida Regulations 62-306.600: Use of Credits and Credit Adjustments
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(1) A credit buyer must submit to the Department information on the term of the trade, the number of credits traded, documentation to calculate the credits generated for the trade, the date when the credits will be generated, the timeframe the credits will be applied under the trade, the unit price for each purchased credit, and the amount of any state funding used to generate the credits traded. The credit buyer must submit the trade information to the Department on Form 62-306(2), “”Water Quality Credit Trading Affidavit”” effective December 2015 (https://www.flrules.org/Gateway/reference.asp?No=Ref-06315), which is adopted and incorporated by reference herein. Copies of the form, which must be signed by the credit seller and credit buyer, may be obtained by writing to the Florida Department of Environmental Protection, 2600 Blair Stone Road (MS #3510), Tallahassee, FL 32399.
(2) The Department will determine whether the seller has credits available in accordance with this chapter.
(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.
(4) A water quality credit trade will become effective once the trade is authorized in the BMAP, RAP, or individual wastewater permit.
(5) If the buyer subsequently proposes to change the source of credits, the buyer must submit a new Water Quality Credit Trading Affidavit and obtain the Department’s written authorization that the proposed seller has sufficient credits available.
(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.
(7) Use of Location Factors to Adjust Credits.
(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.
(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).
(c) This formula may not be used to reduce the number of credits needed below the number of pounds or kilograms needed.
(8) Use of Uncertainty Factors to Adjust Credits.
(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, unless 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 RAP. However, a buyer or seller may propose and document the basis for a lower UF ratio to the Department if justified by site-specific considerations.
(b) Site-specific UF will be based on the Department’s best 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, and the level of uncertainty that the estimated load reduction will be achieved.
Rulemaking Authority Florida Statutes § 403.067(9). Law Implemented 403.067(8)-(10) FS. History-New 9-6-10, Amended 1-11-16.
Terms Used In Florida Regulations 62-306.600
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
(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.
(4) A water quality credit trade will become effective once the trade is authorized in the BMAP, RAP, or individual wastewater permit.
(5) If the buyer subsequently proposes to change the source of credits, the buyer must submit a new Water Quality Credit Trading Affidavit and obtain the Department’s written authorization that the proposed seller has sufficient credits available.
(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.
(7) Use of Location Factors to Adjust Credits.
(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.
(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).
(c) This formula may not be used to reduce the number of credits needed below the number of pounds or kilograms needed.
(8) Use of Uncertainty Factors to Adjust Credits.
(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, unless 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 RAP. However, a buyer or seller may propose and document the basis for a lower UF ratio to the Department if justified by site-specific considerations.
(b) Site-specific UF will be based on the Department’s best 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, and the level of uncertainty that the estimated load reduction will be achieved.
Rulemaking Authority Florida Statutes § 403.067(9). Law Implemented 403.067(8)-(10) FS. History-New 9-6-10, Amended 1-11-16.