NOTICE: Pending environmental lawsuit that can potentially increase your utility rates by 35% - 40% and have an unproven benefit to the environment

How Does Numeric Nutrient Criteria Affect our Ratepayers?

Assuming the Authority could obtain bond financing at its current rate of approximately 5%, a 30-year bond for $123 million dollars would add an extra $8.02 million dollars per year to its existing debt service. Annual power consumption for the proposed additional treatment would add an estimated $2.24 million dollars. Operating labor and maintenance is estimated to cost an additional $0.5 million per year. The total estimated annual cost for the new facilities is $10.76 million dollars. This could equate to a rate increase between 35%-40% to our customers through service rates.

Background on the Federal Litigation

On July 17, 2008, a federal lawsuit against the EPA and its then Administrator, Stephen L. Johnson, was initiated by filing a Complaint in the United States District Court for the Northern District of Florida (Case No. 4:08-cv-00324-RH-WCS). The Complaint in this lawsuit seeks an injunction that would require EPA to set numeric nutrient standards for the State of Florida.

In August, 2009, a Consent Decree was executed by the Plaintiffs and the EPA. If the Consent Decree is accepted by the Court, EPA would be required to propose and adopt numeric nutrient criteria if the State of Florida fails to adopt numeric criteria by a specific date. The Consent Decree would also require EPA to propose regulations setting forth numerical water quality criteria for lakes and flowing waters in the State of Florida by January 14, 2010, if the State of Florida has not already done so. The EPA would have until January 14, 2011 to propose regulations setting forth numerical nutrient requirements for coastal and estuarine waters.

The lawsuit has gained the attention of many entities, including state agencies. Several of these entities have sought intervention in the lawsuit. Two motions to intervene have been granted and there are others pending. All of the intervenors involved oppose the Consent Decree. The Court will entertain the Consent Decree at a fairness hearing on November 16, 2009. All parties will be given the opportunity to present their position on the Consent Decree.

Concerns of the Authority

Based on input from other experts, the Clay County Utility Authority (“Authority”) is told that EPA’s numbers are not scientifically defensible, nor could the EPA determine scientifically defensible numbers prior to the deadline outlined in the Consent Decree. Furthermore, it is the Authority’s understanding that allowing the EPA to promulgate rules would remove the option of the citizens of the State of Florida, including agencies such as the St. Johns River Water Management District (“SJRWMD”), from contesting the validity of the numeric nutrient criteria (were they to be proposed by FDEP through a Chapter 120, Florida Statutes (“Florida’s APA”) administrative hearing) in the same manner as they are accustomed.

The economic impacts of these regulations have not been estimated or analyzed and could result in dire consequences for the State of Florida’s overall economy. Artificial water bodies such as drainage ditches, stormwater ponds, agricultural holding ponds, flood protection systems and others could be required to meet the criteria at an enormous cost and no proven benefit.

Furthermore, even though the Authority has consistently exceeded minimum design and regulatory standards since 1993, and has constructed advanced wastewater treatment for all of its regional wastewater treatment facilities that discharge to surface waters, the Authority would be required to further reduce its nutrient concentrations from advanced treatment levels to the following concentrations:

Achieving this level of treatment would require the Authority to build a micro-filtration plus reverse osmosis facility at each of its wastewater treatment facilities with concentrate discharge through deep well injection. The estimated costs for constructing these facilities are excessive and will have a definite impact on the Authority’s costs and operations.

The Authority supports improving the environment, and has a well established history of doing so. However, the Authority opposes the Consent Decrees and EPA promulgating numeric nutrient criteria that, according to environmental experts, is not scientifically defensible, especially given the major impact such criteria could have on the ratepayers of the Authority and, moreover, the citizens of the State of Florida.

How You Can Help … Your Immediate Action is Important

Contact your elected officials at the State and Federal level advising of your concerns as a citizen of the State of Florida and as a ratepayer of the Authority. You may utilize the concerns of the Authority regarding this issue to support your own concerns. Contact information for your elected officials is provided below:

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*Applicable to officials who have a published E-mail address. Not all officials have a published E-mail address. For complete contact information, see the links below.

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United Stated Elected Officials' Contact Information
State of Florida Elected Officials' Contact Information
Clay County Elected Officials' Contact Information