The Issue Appendix "A" to the final order describes the issues of fact and law which must be resolved.
Findings Of Fact This proceeding is a Subsection 120.54(4), Florida Statutes, rule challenge to proposed Rule 40C-61 proposed by St. Johns and published in Volume 20, Number 44, on pages 8142 through 8151, of the November 4, 1994, issue of the Florida Administrative Weekly (FAW), as subsequently modified by St. Johns' Governing Board on December 14, 1994, and January 11, 1995. The proposed rule adopts Lake Apopka; the Lulu Creek, Teacup Springs, and Fullers Cross tributaries; the Lake Level, and Apopka-Beauclair canals, and the McDonald canal west of the Zellwood Drainage and Water Control District exterior levee; as "works of the District," and collectively refers to them as the "Lake Apopka works of the District." With certain exceptions not relevant to this proceeding, the proposed rule requires persons who discharge water into any of the Lake Apopka works of the District to obtain a works of the District permit. The proposed rule then establishes a maximum number of pounds of phosphorus per year which may be discharged into these Lake Apopka works of the District from controllable sources (the "nutrient limitation"). The nutrient limitation is divided into several source categories one of which is any agricultural operation existing on January 1, 1995, which discharges water to any of the Lake Apopka works of the District by incorporating a pumped discharge from stationary or portable facilities ("pumped agriculture"). The pumped agriculture source category is collectively limited to 10,351 pounds of phosphorus annually. Zellwood is a legislatively created water control district authorized, among other things, to provide for drainage works and water supply for the lands located within its geographical boundaries. Zellwood covers approximately 8,700 acres which are primarily devoted to the growing of vegetables. The landowners own and farm the land within Zellwood. Zellwood also owns land within its boundaries. In connection with the agricultural operations conducted by landowners, and in connection with the functions Zellwood carries out in order to meet its responsibilities to landowners, Zellwood periodically discharges water containing phosphorus to the Lake Level Canal and Lake Apopka through a pump system which it operates for the benefit of the landowners. The landowners will be required to obtain an individual works of the District permit under the proposed rule because the landowners are agricultural operations existing on January 1, 1995, which discharge water, directly or indirectly, to Lake Apopka and Lake Level Canal by incorporating a pumped discharge from stationary or portable facilities. The proposed rule allows persons required to obtain individual permits to submit a collective application for an individual permit based upon a management plan for a defined geographic area. Zellwood will submit a collective application for an individual permit for the landowners. Under a collective application, to obtain an individual permit and comply with the proposed rule, Zellwood will have to reduce the 40,675 pounds of phosphorus per year which Zellwood is currently allowed to discharge to Lake Level Canal and Lake Apopka under a Consent Order between Zellwood and St. Johns, to 6,873 pounds of phosphorus per year. Zellwood is substantially affected by the proposed rule. Lake Apopka is designated by the Department of Environmental Protection (DEP) as a Class III water body. (Rule 17-302.600(1), Florida Administrative Code) The designated uses for Class III water bodies are" "[r]ecreation, propagation and maintenance of a healthy, well balanced population of fish and wildlife." (Rules 17.302.400(1) and 17.302.600(1), Florida Administrative Code) For water quality standard purposes, phosphorus is categorized as a nutrient. The nutrient standard for Class III water bodies is: "[i]n no case shall nutrient concentrations of a body of water be altered so as to cause an imbalance in natural populations of aquatic flora and fauna." (Rule 17.302.530 (48)(b), Florida Administrative Code). Florida law provides no generally applicable numeric standard for Class III water bodies for phosphorus. The transparency water quality standard for Class III water bodies is "[d]epth of compensation point for photosynthetic activity shall not be reduced by more than 10 percent as compared to natural background value." (Rule 17- 302.530(68), Florida Administrative Code) The "[c]ompensation point for photosynthetic activity" is defined as "the depth at which one percent of the light intensity at the surface remains unabsorbed." (Rule 17-302.200(5), Florida Administrative Code) Rule 17-302.200(13), Florida Administrative Code, defines "[n]atural background" as "the condition of water in the absence of man-induced alterations based on the best scientific information available to the Department." The rule further provides that: "[t]he establishment of a natural background for an altered waterbody may be based upon a similar unaltered waterbody or on historical pre-alteration data." Lake Apopka is a hyper-eutrophic lake enriched with nutrient levels that exceed the Class III standard for nutrients. Lake Apopka also does not currently meet the Class III water quality standard for transparency. In order to determine, for purposes of the proposed rule, the maximum number of pounds of phosphorus per year from all sources which could be discharged into Lake Apopka to cause the lake to meet the Class III water quality standard for the nutrient phosphorus and the Class III standard for transparency, St. Johns staff conducted analyses intended to determine the historic water chemistry conditions in Lake Apopka to establish values for the natural background condition of the lake. St. Johns used this information to determine goals for the major indicators of trophic state (total phosphorus, chlorophyll a, and secchi depth) which, if attained, would cause the lake to once again meet Class III standards. The St. Johns' analyses to determine the historic water chemistry of Lake Apopka and the goals for the major indicators of trophic state consisted of: (a) an analysis of reference lakes which are not as severely impacted by human activities as Lake Apopka which St. Johns believed to be comparable to what Lake Apopka would be; (b) an analysis of using an empirical model that related phosphorus concentrations to other water quality constituents to estimate pre-impact conditions and the minimum quality allowed by Class III standards; and (c) an input-output model. Zellwood does not dispute the analysis which was used in the empirical model or the input-output model analysis. St. Johns then used the steady-state formulation of Volenweider's 1969 input-output model to predict the equilibrium phosphorus concentration in Lake Apopka under various phosphorus loading scenarios. A variable which is used by this Volenweider model is a sedimentation coefficient. St. Johns defined the sedimentation coefficient as the mean annual net deposition of phosphorus to the sediments divided by the mean lake water mass of phosphorus. The sedimentation coefficient value St. Johns used in the model was developed from data obtained from two sets of lake sediment samples taken 19 years apart. Using this sedimentation coefficient in the Volenweider model, St. Johns determined the equilibrium concentration of phosphorus in Lake Apopka that would be predicted to result from various levels of phosphorus loading. St. Johns also developed an external nutrient budget for Lake Apopka by measuring phosphorus inputs and outputs to the lake over a four year period. Sedimentation coefficients were also developed from this nutrient budget. Using information from the nutrient budget, St. Johns categorized phosphorus contributions into Lake Apopka into uncontrollable and controllable sources. Using information obtained from the Volenweider modeling effort, St. Johns determined the maximum amount of phosphorus from all sources which it believed could be put into Lake Apopka to allow the lake to achieve Class III water quality standards. St. Johns then subtracted the annual pounds of phosphorus contributed to Lake Apopka from uncontrollable sources to determine the maximum amount of phosphorus that St. Johns believes can be contributed to Lake Apopka from controllable sources to allow the lake to achieve Class III water quality standards. The maximum amount of phosphorus which St. Johns believes can be contributed to Lake Apopka from controllable sources to allow the lake to achieve Class III water quality standards became the nutrient limitation set forth in the proposed rule. The proposed rule contains a methodology for calculating adjustments to the nutrient discharge limitation in response to rainfall events. In paragraph 11.B.2. of its petition, Zellwood alleged that this rainfall adjustment methodology is arbitrary and capricious. Zellwood now withdraws this count of the petition, and does not dispute the rainfall adjustment methodology contained in the proposed rule. The water level in Lake Apopka is controlled by a structure known as the "Apopka Lock and Dam," which is operated by St. Johns. St. Johns establishes and controls the water levels in Lake Apopka through its operation of the Apopka Lock and Dam. Lake Level Canal has a free connection with Lake Apopka, and the water level in Lake Level Canal rises and falls in relation to the rise and fall of the water level in Lake Apopka. St. Johns establishes and controls the water levels in Lake Level Canal by establishing and controlling the water levels in Lake Apopka. ZELLWOOD'S SERVICES TO LAND OWNERS AND OPERATIONS Zellwood is a special drainage and water control district in Orange County, Florida. It was created in 1941 under Chapter 20715, Laws of Florida. The landowners own and farm the majority of the land within Zellwood's boundaries. Zellwood owns a small portion of the land within its boundaries, including portions of the Lake Level Canal. Zellwood discharges stormwater directly to Lake Apopka. It also discharges stormwater into canals that flow into Lake Apopka. These discharges principally occur during periods when the stormwater cannot be used for irrigation and must be pumped from the land surfaces into the receiving waters. It is not the annual amount of rainfall that promotes the discharge, it is the frequency, intensity and distribution of the rainfall that promotes the discharge. Zellwood receives approximately 51 inches of rainfall annually. That amounts to 12 billion gallons of stormwater. In an average year Zellwood would also take from 1 to 2 billion gallons from Lake Apopka for irrigating crops or flooding the land to control nematodes. The 51 inches of rainfall received by Zellwood contains approximately 6,100 pounds of phosphorous. The lake water pumped onto the Zellwood properties contains as much as 2,800 pounds of phosphorous. Zellwood pumps approximately 4 to 5 billion gallons of water to Lake Apopka or the Lake Level Canal per year, constituted of rainwater and the lake water which it uses for irrigation and flooding. The rainfall which is discharged constitutes 30 or 40 percent of the rainfall received by Zellwood. To satisfy the budget requirements for phosphorous called for by the proposed rule in its allocation, Zellwood would need to construct a settling pond of at least 800 to 1200 acres to control phosphorous discharge above the amount allocated by the proposed rule. According to the proposed rule, pumped agriculture, such as the Zellwood properties may only discharge .79 pounds of phosphorous per acre per year. Zellwood owns interest in the Lake Level Canal from the bank on the canal that is associated with its property to the centerline of the canal itself. WORKS OF THE DISTRICT Historically St. Johns has declared naturally existing water bodies to be works of the District for its regulatory purposes. LAKE APOPKA: PRESENT AND IMMEDIATE PAST HISTORY Lake Apopka is a naturally existing water body. Lake Apopka is a large shallow lake in central Florida. Its surface area covers approximately 30,000 acres. Its average depth is approximately 6 feet. In its recent history Lake Apopka has been severely impacted by natural and artificial events. A hurricane uprooted the majority of native aquatic plants in Lake Apopka in 1947. At that time Lake Apopka was dominated by aquatic macrophytes, large aquatic plants. Following the hurricane event the large aquatic plants have never been reestablished in the lake. At present the lake is dominated by a phytoplankton-based community (algae). When the Apopka-Beauclair Canal was opened to connect Lake Apopka to a down stream chain of lakes, Lake Apopka was lowered approximately three feet. The lowering of the water depth in Lake Apopka to make this connection had an impact on the lake. In its recent history Lake Apopka has been impacted by sewage effluent discharge from the City of Winter Garden, Florida, discharges from adjacent citrus processing facilities and discharges of excess stormwater from adjacent vegetable farms, all contributing to the nutrient loading in the lake. Lake Apopka was further impacted by attempts to control water hyacinth in the lake by spraying those plants with herbicides and leaving them to decompose. In the late 1950s, 20 million pounds of gizzard and threadfin schad were killed and left to decompose in the lake. The spraying of hyacinth and the fish kills adversely impacted Lake Apopka. All the events described contributed to the lake being dominated by phytoplankton and exceeding Class III water quality standards that have been previously discussed. The events described have had an influence on the material deposited at the lake bottom. Adjacent to the water column in the lake is a significant deposit of unconsolidated flocculent material. Beneath that layer is a layer of consolidated flocculent material. The overall flocculent material contains large amounts of phosphorous. The flocculent material hinders the attachment of aquatic macrophytes and the ability for gamefish to successfully inhabit the lake. The unconsolidated and consolidated layers are distinguished in appearance and consistency. The consolidated layer contains the remains from aquatic macrophytes and remains of snails that lived on those plants. The unconsolidated layer does not contain those materials. Both layers contain deposits of algal cells and allochthonous particulate organic material. STATUTES AND RULES St. Johns cites to Sections 373.044 and 373.113, Florida Statutes, for its specific authority to adopt the proposed rule. It cites as laws implemented by the proposed rules, Section 373.085, 373.086 and 373.103, Florida Statutes. Chapter 85-148, Laws of Florida, directs St. Johns to engage in a pilot project to determine a technically and economically feasible method of restoring Lake Apopka to Class III water quality standards. The State Water Policy found in Chapter 17-40, Florida Administrative Code, also reminds St. Johns to reduce pollutant loadings from older stormwater management systems, as necessary, and to restore or maintain the beneficial uses of waters through implementation of basin specific rules. The basin in question here is the Lake Apopka drainage basin which includes works of the District adopted by proposed rule 40C-61. TECHNICAL AREAS FOR RULE DEVELOPMENT Here the major technical areas for rule development included: The establishment of target phosphorous concentration for a restored Lake Apopka; Use of the Volenweider model to determine the amount of external loading that would permit the lake to reach the target phosphorous concentration; and Development of an external phosphorous budget based upon external sources of phosphorous introduced to the lake as a means to allocate allowable discharges of phosphorous among the external sources. HISTORIC WATER CHEMISTRY AS A MEANS TO ESTABLISH VALUES FOR NATURAL BACKGROUND CONDITIONS IN THE LAKE AND TO SET GOALS FOR THE MAJOR INDICATORS OF TROPHIC STATE (TOTAL PHOSPHOROUS, CHLOROPHYLL a AND SECCHI DEPTH), AS EQUATED TO PHOSPHOROUS CONCENTRATION FOR A RESTORED LAKE APOPKA DEP Class III water quality standards contemplate establishment of "natural" or "natural background" conditions. In the proposed rule, to approximate the natural condition in Class III waters St. Johns was interested in determining the maximum number of pounds of the nutrient phosphorous that could be discharged per year from all sources into Lake Apopka and adequately address Class III water quality standards as described and interpreted by St. Johns in developing the proposed rule. In associated topics for Class III water quality considerations examined in the proposed rule, secchi-depth is a measurement related to water transparency. Chlorophyll a information indicates the number of particles or standing stock of algae that would affect transparency. Total phosphorous is involved with the issue of transparency in that it influences chlorophyll a. Through its analyses St. Johns attempted to establish a target concentration for phosphorous in Lake Apopka which would reflect the pre- impacted condition in Lake Apopka. Without establishing that target concentration St. Johns was persuaded that the lake could not be restored to natural conditions/Class III standards as St. Johns perceived those standards in the rule development. To achieve its end St. Johns made analyses which were intended to determine the historic water chemistry conditions in Lake Apopka that were equivalent to the natural condition of the lake. In carrying out its task St. Johns was unable to resort to an analysis of water chemistry samples taken from Lake Apopka in its pre-impacted condition because such samples did not exist. In particular St. Johns analyses of the historic water chemistry (natural conditions) consisted of: An analysis of reference lakes which were not believed to be as severely impacted by human activities as Lake Apopka; An analysis using an empirical model that related phosphorous concentrations to other water quality constitutes to estimate pre-impact conditions; and An input/output model. As described before Zellwood does not dispute the use of the empirical model or the input/output model, other than whether St. Johns used the mean or median from the range of data derived from those analyses, and if it did, whether that depiction of the results from the analyses was an arbitrary or capricious choice. St. Johns did not use a mean or median value to depict the data derived from the input/output model or the empirical model. St. Johns did perform a sensitivity analysis associated with the empirical model to determine the effect on the results by modifying input levels. There were two parts to the reference lake analysis. In the first part St. Johns examined geologic and physiographic maps of Florida as a means to select lakes for the analysis that were fairly large in surface area and were in similar geologic strata compared to Lake Apopka. In this part St. Johns also examined whether there were large wetlands in the watershed for the lakes under consideration and whether those lakes had a large river flowing through them. Those were matters of concern because they tend to affect the water quality of a lake. Because the results of the selection process in the first part were criticized, St. Johns performed a second part to the analysis and used those results. In the second part of the referenced lake study St. Johns started with a data set of 134 Florida lakes. These lakes were then screened through four filters which were designed to exclude those lakes that did not have physical characteristics similar to Lake Apopka. St. Johns proceeded on the basis that these physical characteristics would affect a lake's water quality. Beyond the use of filters to eliminate certain lakes, St. Johns also removed lakes which were saline or esturaine in nature, and those known to be in an impaired condition and for which there did not exist water quality information concerning their pre-impaired condition. This process also required removing Lake Apopka from the analysis for purposes of using data about the lake in the analysis. Those lakes that remained after the screening process in the second part of the referenced lake study were lakes which basically met Class III water quality standards or had pre-impairment data available for comparison. The level of phosphorous concentrations in those nine lakes represented a broad range of trophic states. To check the appropriateness of the filters used in the second part to the referenced lake study, St. Johns performed a sensitivity analysis by passing data about the 134 lakes through the same four filters in a process which reduced the most restrictive filter and increased the least restrictive filter in their numeric values. When the more restrictive filter was reduced, only Lake Apopka remained in the analysis. This indicated that the use of a more restrictive value was not appropriate because only Lake Apopka would be left. By increasing the numeric value in the least restrictive filter, this left more than nine lakes with a median phosphorous concentration of 48 parts per billion (ppb). This compared with a mean phosphorous concentration for the nine lakes from the initial part of the study of 46 ppb. This comparison indicated that increasing the least restrictive filter to include more lakes in the study did not substantially change the median value for phosphorous. Phosphorous concentrations in the nine lakes resulting in the second part to the referenced lake analyses, before the sensitivities check was made, ranged from 11 to 76 ppb. Those ranges fell in a bell-shaped distribution. The frequency distribution for the values in the nine lakes studied in the second part to the referenced lake analysis were similar to the distribution for the underlying data set related to those lakes. To arrive at the most representative value for phosphorous for the distribution of the underlying data one would select from the center of the distribution, not from the extreme ends. Given the similarity between the frequency of phosphorous concentrations in the nine lakes and the distribution of the underlying data set, St. Johns selected the median value of 46 ppb as the most representative phosphorous concentration in the nine lakes. St. Johns ran three statistical tests in the range of 11 to 76 ppb for phosphorous in the nine lakes in the second part to the study. The purpose of those statistical tests was to identify outliers or extreme values. St. Johns did not consider any of the values to be outliers from a statistical point of view. Given that the levels of phosphorous concentration in the 134 Florida lakes, which constituted the starting point for the analysis in the second part, carried values from 3 to 4,000 ppb for phosphorous in those lakes, the screening process dramatically decreased the range of values for phosphorous to a distribution between 11 and 76 ppb. In performing the reference lake analyses St. Johns did not attempt to identify trophic state for each lake. It attempted to derive a range of phosphorous concentrations and select from that range the most probable phosphorous concentration value to depict the natural conditions or historic water chemistry in Lake Apopka. In this process St. Johns did not try to find pristine lakes in Florida to establish the value for phosphorous in Lake Apopka, rather St. Johns attempted to find lakes that would represent water quality in Lake Apopka had it not been subjected to the events that caused adverse impacts through phosphorous loading. As another check on the results reached in the second part to the reference lake study, in which the median phosphorous concentration was 46 ppb, St. Johns referred to the median in a larger data set of Florida lakes in a publication by Huber et al. In the Huber publication the median value was 40 ppb. In combination the information from the reference lake study, the empirical analysis and the input/output model was used by St. Johns to establish the most probable values of total phosphorous, chlorophyll a and secchi depth that would represent the pre-impacted natural background conditions in Lake Apopka. In examining these parameters St. Johns attempted to establish the most probable ranges for natural background in the trophic state variables. St. Johns took these results concerning the three parameters and applied the 10 percent degradation component allowed by DEP Class III water quality standards for transparency. See Rule 17-302.530, Florida Administrative Code. Concerning the trophic state variable phosphorous, St. Johns did not attempt to and did not believe it could pinpoint with scientific certainty what the precise phosphorous concentration for Lake Apopka would be above which one could not achieve Class III water quality standards as it identified those standards. What St. Johns attempted was to set the most probable range for Class III water quality standards for phosphorous concentrations in Lake Apopka to create the probability of a mesa-trophic state in a warm water tropical lake. Lake Apopka is a warm water tropical lake. St. Johns wanted to avoid phosphorous concentrations in a range that was higher than that which would support Lake Apopka in a mesa-trophic state for fear that increased concentrations above that range would dramatically increase the possibility that its perception of Class III water quality standards would not be achieved. St. Johns through its staff took into account the public concern for achieving the desired trophic condition in Lake Apopka that was consistent with those Class III water quality standards and the ability for Zellwood and others similarly situated to install and operate treatment facilities sufficient to meet the requirements in the proposed rule. That is to say, the limitations on discharge found in the proposed rule. Through the exercise in employing the reference lake study, the empirical model analysis and the input/output model analysis St. Johns concluded that the most probable phosphorous concentration range to meet Class III water quality standards in Lake Apopka was 38 to 55 ppb. By comparison the proposed rule contemplates achieving load limitations which would result in a future steady state phosphorous concentration in the lake of 56 ppb. The means employed by St. Johns to establish the steady state total phosphorous concentration of 56 ppb in a restored Lake Apopka which would meet its perception of Class III water quality standards for phosphorous were scientifically valid. Assuming its authority to employ a phosphorous water quality standard similar to the water quality standard for nutrients used by DEP or to utilize the DEP standard in developing the proposed rule, the means were not arbitrary and capricious. VOLENWEIDER MODEL Having determined that the target phosphorous concentration to meet Class III water quality standards for phosphorous was 56 ppb, St. Johns used that number in a water quality model to back calculate the amount of phosphorous that could be discharged into Lake Apopka from external sources and still maintain the phosphorous concentration level. The model employed was a Volenweider model. This Volenweider model is a basic input/output model which seeks to predict long-term steady state phosphorous concentrations based upon external loading of phosphorous. The formula in the model is expressed as: P = W/ (Q+ Sigma V). P represents the steady-state phosphorous concentration. W represents the annual loading of phosphorous from all external sources. Q represents the annual inflow of water. Sigma represents the net sedimentation coefficient. V represents the lake volume. To exercise the Volenweider model that determines the steady-state phosphorous concentration St. Johns considered various levels of phosphorous loading from external sources. In using the Volenweider model St. Johns had in mind the long view when Lake Apopka would reach an equilibrium which met its interpretation of Class III water quality standards for phosphorous. The model they selected met that goal because it is not time dependent. Nor was St. Johns attempting to predict year-to-year variability in phosphorous concentrations that might occur in Lake Apopka. Neither was the intent to predict transient responses that might result from reduction in external phosphorous loading. In choosing the long-term steady-state approach, St. Johns recognized that phosphorous concentrations reached at the equilibrium for the changed Lake Apopka would vary. Finally, consistent with St. Johns' intent, this Volenweider model is not designed to predict how long it would take Lake Apopka to reach a new equilibrium steady-state. The Volenweider model is an acceptable model for predicting steady state phosphorous concentration in Lake Apopka over the long term. The Volenweider model does account for mixing in the lake volume. It accounts for loss of phosphorous through net sedimentation to the bottom sediments and for loss of phosphorous through outflow. In the model, the net phosphorous sedimentation coefficient refers to the mean annual net deposition of phosphorous to the sediments divided by the mean lake water mass of phosphorous. Net phosphorous sedimentation considers the process of gross sedimentation which is the total amount of phosphorous settling out of the water column to the sediments over a span of time, as well as the release of phosphorous from the sediments. Net sedimentation is the product of the gross sedimentation minus the release of phosphorous from the sediments. The historical experience which St. Johns has had in monitoring gross sedimentation of phosphorous and the release of phosphorous from the bottom sediments has never revealed a net release of phosphorous from the sediments as opposed to a net sedimentation of phosphorous to the sediments. In determining sigma, the net sedimentation coefficient, St. Johns considered a study performed by Schneider and Little in 1968 in which the sediments in Lake Apopka were examined. The results in that study were then compared with a study conducted by Reddy and Gretz in 1987, involving an examination of the Lake Apopka sediments. In particular St. Johns was interested in measuring increases in sediment depth in the top layers of sediments between 1968 and 1987 for phosphorous. The Schneider report describes the top layer of core samples taken as "floc." The next layer is "muck." Under the muck layer in some samples there is a report of finding shell. Under the muck in other samples there is a report of peat. In some core samples sand was underlying the muck. In one sample sand, then peat was underlying the muck. In some samples clay was underlying the muck. In one sample only peat was found. In some instances the muck layer was described as a combination of muck and shell. In one instance the muck layer was described as muck, shell and vegetative detritus. In one instance the muck layer was described as vegetative detritus only. In some samples muck was not found. In some instances the lake bottom was not penetrated when samples were taken. In gross terms the Schneider report refers to the bottom sediments as muds, and it comments that those muds for the most part are unconsolidated. Top sediments are referred to as surficial sediments said to be approximately 99 percent water. The ooze beneath those top sediments is at a depth of one meter and is slightly more dense being constituted of 90 percent water. The Schneider report found that soft deposits covered more than 90 percent of the bottom of the lake. In some instances the unconsolidated deposition was found to be 40 feet thick with an average thickness throughout the lake of approximately five feet. In the Schneider study ninety sites throughout the lake were sampled by coring. In 1987, Reddy took sediment core samples on the same sampling grids that were used by Schneider, but not in the exact location. The same number of samples were extracted. The Reddy report describes the sediment cores from top to bottom as horizons in which there is unconsolidated floc (UCF) overlaying consolidated floc (CF), which overlays peat, sand, clay and marl. The Reddy report describes the UCF layer as consisting primarily of deposits of algal cells and allochthonous particulate organic matter. Moreover, the Reddy report refers to this layer as being actively involved in re- suspension of nutrients during wave events. The report indicates that this layer was found in 86 sampling sites. The Reddy report refers to the CF layer as consisting of settled algal cells, detritius from aquatic macrophytes and allochthonous particulate organic matter. The report shows that this layer was found in 81 sample sites. The report reminds the reader that the maximum core depth retrieved from the lake horizon differentiation was 200 cm and that certain locations were measured at a total sediment depth of greater than 600 cm using metal tubing unrelated to core extraction. St. Johns in employing the findings in the Schneider and Reddy reports equated the floc layer in the Schneider report with the UCF layer in the Reddy report and the muck layer in the Schneider report with the CF layer in the Reddy report. From its review of those reports, associated data in the Reddy report and conversations about the Reddy report, it determined to use the increased depth between the floc layer in the Schneider report and the UCF layer in the Reddy report to establish a net sedimentation coefficient for use in the Volenweider model. Additional information about the Reddy report which St. Johns took into account in comparing the sediment studies with those in the Schneider report, was related to electronic data files on the Reddy sediment samples and consultation with Dr. Reddy and Matt Fisher, co-authors in the Reddy report. St. Johns used the accrual in the top layer at each of the sampling sites that occurred in the 19 year period. It then multiplied that accrual in sediment by the dry weight density of the sediment, also referred to as bulk density, and the phosphorous content to calculate the accrual of phosphorous in the 19 year period. The comparison of the top layer sediments in the Schneider and Reddy reports involved a paired analysis of most of the 90 sites involved with the individual studies. St. Johns then used an averaging technique to calculate the amount of phosphorous deposited over the entire lake. The first step in that process was to average the four corners of each of the square areas on the grid to arrive at an average phosphorous accrual in each of the squares. It took this information to do an areal weighting in view of the fact that each average square area does not represent equal areas of the lake when taking into account those areas around the margin of the lake. St. Johns weighted each average square area by its representative area then derived a weighted average phosphorous deposition for the top layer over the 19 year period. In its averaging approach St. Johns attempted to account for the fact that the core sampling in the Schneider studies and Reddy studies were not taken from the exact same spots. St. Johns assumed that the Reddy study had not systematically found areas that were greater or lesser in the accumulation of the top layer sediments when addressing possible sampling sites. Under the circumstances, variability in the top layer accumulation is random and the random error caused by variability sums to zero and is eliminated by the use of averaging. The difference between the paired analysis in the top layer, and the lake wide averaging for the top layer, concerning the accrual of phosphorous, was an additional three percent for the lake wide averaging. In its final depiction of the sedimentation coefficient for phosphorous St. Johns employed the paired analysis in exercising the model. St. Johns was not convinced that what Schneider refers to as the muck layer and Reddy refers to as the CF layer had increased in the 19 years between the studies. It premised its belief on the notion that the second layer is qualitatively different from the top layer. In a comparison of sample sites in the Schneider and Reddy studies where the second layer had been completely measured it was persuaded that there had not been a statistically significant increase in the sediments. St. Johns was aware through direct knowledge of some sampling done in the Reddy study that the top of the core was characterized by a lighter color. That layer was kind of bumpy and almost airy in appearance. It began to consolidate the further down you proceeded in the top layer. Down the core sample there was a sharp interface and below the interface the color was darker. Below the interface in the core sample had shell material in it. When the core material in that sample was extruded it was observed as being geletinous at the top in the unconsolidated material. In the area where the material was consolidated the core broke off pretty cleanly. Below the interface was what the observer referred to as hydrobiidae snails, detritus from aquatic macrophytes and planordidae that live on plants. The material where the snails were found was sticky and thick and once extruded from the sample would stand up. The upper layer was more uniform in its consistency and by its appearance came from a phytoplankton-based community. The upper layer was very fine and did not contain large animal remains. The plant material in the lower layer was suggestive of larger submerged plants, macrophytes. The person who made the observations of the core sample taken in the Reddy study was Dr. David Stites, a St. Johns employee. These observations were in contrast to Dr. Reddy's overall findings in the study which found evidence not only of an aquatic macrophyte community but algal cells and allochthonous perticulate organic matter in the CF. Nonetheless, St. Johns proceeded on the basis that the UCF layer in the Reddy study was a phytoplankton-based community and that the CF was laid down in a different lake community than the UCF. St. Johns believed that the CF layer community was one related to large aquatic plants only. Moreover, St. Johns was persuaded that the two types of sediments in the UCF and CF layers resulted from the 1947 hurricane that dislodged large aquatic plants, creating the opportunity for phytoplankton bloom that persists to the present, and by that activity blocks the light which would have allowed the submerged plants to reestablish. In its quantitative comparison of the second layer in the two studies, St. Johns censored the sediment core data contained in the appendix to the Schneider report and utilized only those cores which showed a third sediment layer of sand, clay or peat beneath the muck layer for comparing the muck layer in the Schneider report to the CF layer in the Reddy report. St. Johns censored the sediment core data contained in the Reddy report to those instances in which their was evidence that the sediment core samples had reached levels of sand, clay, marl or peat. Included in this censoring activity was review of the raw electronic data files for the sediment samples in the Reddy report and conversations with Dr. Reddy and Mr. Fisher in the attempt to determine which core samples penetrated through to the sand, clay, marl or peat interface. Given that the Reddy report indicated that the sampling probe used was 200 cm in length and some places in the lake had sediments 600 cm in length, this served as additional evidence that not all sample sites captured the entire CF fraction in the core. St. Johns limited a comparison between the muck layer in the Schneider report and the CF layer in the Reddy report to those sites that they were convinced fully collected those fractions in the core sample. By comparing the limited number of sites St. Johns found that the difference between the muck layer and the CF layer was a negative number but was not statistically different from zero. Therefore St. Johns concluded that the thickness in the CF layer had not increased over the 19 year period between the two reports. In arriving at this conclusion St. Johns paired a limited number of muck and CF sample sites and examined the censored data from the muck samples and the CF samples independently to support the conclusion that there was no increase in the material in the second layer in the intervening 19 years. In performing the muck/CF analysis St. Johns looked at 26 sites from the 1968 study and 28 sites from the 1987 study. They rejected the remaining sites as being sites where the second layer was not completely penetrated and under-represented the amount of muck/CF that may have existed. In its analysis of muck/CF, 17 sites were compared from the two studies as a means determine whether the muck/CF layer had increased in the 19 years. By that analysis the CF layer was shown to have decreased by 11.1 cm. In a second analysis in the muck/CF layer the 26 sites in the 1968 study and 28 sites in the 1987 study were averaged separately to determine any increase in the muck/CF layer over the entire lake. The second analysis using averaging showed a decrease of around 8.1 cm. By using only the accumulation in the floc/UCF layer that occurred during the 19 years St. Johns determined that the phosphorous sedimentation coefficient for use in the Volenweider model was .974 per year. The technique that St. Johns employed to measure the increase in thickness in the floc/UCF layer was scientifically valid. St. Johns' assertion that the floc/UCF layer and the muck/CF layer were constituted of different communities, phytoplankton-based community in the top layer and a macrophyte community in the second layer is not accepted. As the Reddy report established, the CF layer included algal cells which are indicative of a phytoplankton-based community. Consequently, the qualitative analysis which St. Johns made concerning the UCF and CF layers in the Reddy report is rejected to the extent that St. Johns contends that a differentiation exists based upon lake communities in the two fractions in the core samples. The other reasons for asserting that there is a clear demarcation between CF and UCF in the Reddy study and for claiming the description of floc and muck in the Schneider report as being comparable to CF and UCF in the Reddy report are accepted. It was not scientifically correct to defer to the 17 pairings and the averaging for the 26 and 28 sites, respectively, to determine possible increases in the second layer in the intervening 19 years. In measuring muck/CF, the two studies did not penetrate the bottom sediments at all sample sites. Nonetheless, there was an increase in the muck/CF layer at considerably more stations than were used by St. Johns in deciding that the change in the intervening period was a minus value. It was arbitrary and capricious for St. Johns not to take into account all sample sites which showed values for the muck/CF layer when ascertaining whether an increase had occurred in that layer between 1968 and 1987. Moreover, as Dr. Curtis D. Pollman established, a significant number of remaining sites which were compared and averaged came from the northern area in Lake Apopka. That area is an erosional zone, characterized by high water velocities. Those velocities scour the sediment-water interface and entrain sediment particles and move those particles away from the shore into deeper regions which are more flaccid. According to Dr. Pollman, information taken from the sites in that northern area would tend to underestimate the amount of muck/CF deposition in the overall lake when extrapolating the information found in the limited sample sites as a means to depict the change in the second layer deposition in the intervening 19 years between the two reports. Some correction would need to be made to the representative sampling to allow the extrapolation to properly estimate the overall second layer deposition in the lake. This is taken to mean an upward correction in the values. To support his conclusions, Dr. Pollman relied upon his own experiences at Lake Apopka in which he has noted the erosional circumstances in the northern lake area. In addition, Dr. Pollman gained support for his opinion from the Schneider report which suggests that there is an erosional zone in the northern area. His opinions are accepted. Consequently, St. Johns has not properly portrayed the circumstance in the second layer which would cause an under estimation of the sedimentation coefficient per year. It was appropriate for St. Johns to attempt to portray a constant sedimentation coefficient for phosphorous in the existing Lake Apopka, in contrast to the steady state coefficient for phosphorous in a restored Lake Apopka. It is necessary to address the current condition which is algae- dominated to improve the condition to one of increased water clarity and increased growth of submerged and emergent plants that is desired for the restored Lake Apopka. EXTERNAL LOADING: UNCONTROLLABLE SOURCES By exercising the Volenweider model, St. Johns determined the maximum discharge of phosphorous to Lake Apopka from external sources that it believed would allow the lake to meet its target goal for phosphorous concentration. The total phosphorous in the steady state concentration has two components. The first component is from controllable sources. The second component is from uncontrollable sources. The uncontrollable sources were subtracted from the total phosphorous concentration to determine maximum discharge for controllable sources. This forms the basis for the nutrient budget for phosphorous in the proposed rule 40C-61. In considering total phosphorous concentration from external sources St. Johns developed an external nutrient budget for Lake Apopka by measuring phosphorous inputs and outputs in a four year review. The parties do not dispute the phosphorous concentration from controllable sources. There is a dispute concerning uncontrollable sources: atmospheric deposition, rainfall and dryfall, and from Apopka Spring also known as Gord Neck Spring. Rainfall is referred to as wet deposition. Dryfall is also referred to as dry deposition. Dryfall is dust. When atmospheric deposition from rainfall and dryfall enters the lake it directly contributes to the total phosphorous concentration. In the four year review the data collection for wet and dry deposition was conducted in two separate phases. In the years 1989 and 1990 samples were collected from a station in the center of Lake Apopka. In the years 1991 and 1992 a land-based station at the northwest corner of Lake Apopka was used. In collecting data from the lake site in 1989 and 1990, St. Johns measured wet and dry deposition through a bulk deposition collector located on a platform. That collector had two funnels connected to a reservoir through which dry fall was collected during dry periods and the dryfall then was washed into a reservoir by rainfall which was also collected. When the samples were removed from the collector they were taken to a laboratory for analysis. The purpose of the analysis was to determine the total phosphorous concentration in the sample. The total phosphorous concentration in each sample was multiplied by a total volume of rain calculated to have entered the collector during the period of collection. This calculation was then adjusted to reflect the deposition over the total lake area. In turn an apportionment was made to reflect the number of days that transpired between this sample collection and the previous sample collection in order to depict the daily estimates for deposition that were collected between the two sample dates. Those daily loads were then summed to reflect the collection for each month in the review. There were problems with this method of collection at the lake center. The samples that were collected were subject to contamination from bird droppings, insects entering the sample device and human activity. Many attempts were made by St. Johns to avoid this contamination during the two years. In recognition of the problems with contamination, the St. Johns' staff that collected the samples were told to discard samples that were contaminated as evidenced by visual observation. Those instructions were carried out. The samples that remained after discarding some samples based upon their appearance were subject to further censoring in an attempt to eliminate extreme values of phosphorous concentration in the laboratory analysis process. Those extreme values indicated contamination. In the censoring process based upon extreme values four samples were eliminated as being significantly higher than the others. Those four samples were more than three standard deviations from the overall sample mean, indicating problems with contamination. As further evidence that the samples were contaminated, they had high nitrogen concentrations, indicative of contamination from bird droppings. The samples then underwent a further censoring process. This involved establishing a mean phosphorous concentration and a standard deviation for the remaining samples. That standard deviation was one standard above the mean value. Again this censoring process was designed to remove contaminated samples. Samples more than one standard deviation above the mean were discarded. By this process an additional five samples were eliminated. Following the censoring activities 39 samples remained. Those samples formed the basis for determining atmospheric deposition in 1989 and 1990. The process for data collection and censoring contaminated samples were proper steps and scientifically valid. In 1991 St. Johns obtained a wet-dry collector. This is another type of instrument used for measuring atmospheric deposition. This collector consists of two buckets. One bucket collects rainfall and the other bucket collects dryfall. This device automatically covers and uncovers the two buckets in response to whether it is raining or not. St. Johns determined to use the wet-day collector at its land-based collection site for several reasons. First, there was the concern about contamination in the samples that could not be overcome. There was concern that St. Johns did not have sufficient resources and manpower to continue to maintain data collection at a station that was 4 or 5 miles out in the middle of Lake Apopka. In that connection the wet-dry collector that they intended to use in the future had an electrical power source which could not be supplied at the lake center. Therefore, St. Johns abandoned the use of the data collected at the lake center site in favor of the land based collection point. In the 1991 and 1992 years that samples were taken from the land based site, dry deposition was used to determine the total mass of phosphorous in each sample. That number was divided by the total number of days since the last collection had been made to establish the daily load for the period. Monthly totals were summed from the daily values. In setting up the wet-dry collector St. Johns deferred to the NADP/MTN Deposition Monitoring Quality Assurance Plan (1990), to the extent that it felt that the plan was applicable to its collection activities. In setting up the wet-dry collector, St. Johns did not place the collector on a tower 48 to 50 feet high as is currently done in the state-of- the-art methods for use of land-based dryfall collectors. Sometime in 1992 persons who were collecting dryfall began to install the collection device on the towers. Notwithstanding that St. Johns did not use a tower for the wet-dry collection, its method for collection was scientifically acceptable. To get the annual value for atmospheric deposition for the four year period 1989 through 1992 St. Johns added the annual volumes calculated in the 1989 and 1990 data from the lake based station to the annual volumes calculated for the 1991-1992 data collected from the land based station and divided that number by four. This resulted in an annual figure of 7,951 kilograms of phosphorous. The budget for atmospheric deposition of phosphorous in Lake Apopka is reasonable in that the means for establishing that budget is reasonable. Apopka Spring provides phosphorous to Lake Apopka. The spring is connected to the Floridian aquifer. The spring is located in the southwestern portion of Lake Apopka which is known as Gord Neck. To determine the contribution of phosphorous from Apopka Spring, St. Johns looked at the annual average volume of flow from the spring and the annual average of concentration of total phosphorous in that water. In calculating the spring flow volume, St. Johns used United States Geological Survey information obtained by a diver who went into the throat of the spring to measure that flow. The measurements were taken on five occasions. The information on flow was used to develop a model that correlates spring flow, lake stage and Floridian aquifer stage as a means to determine the annual average flow from the spring for the years 1989 through 1992. The diver also took a water quality sample from the throat of the spring on one occasion at the point where the spring immerges from a rock. That sample was analyzed in a laboratory. It showed a total phosphorous concentration of 32 micrograms per liter. The water quality in the Floridian Aquifer can vary significantly over time at the same discharge point from the aquifer. Those changes in the water quality are more noticeable in the instance where the discharge point is close to the aquifer recharge area. That has significance based upon the short period of time in transit from the aquifer recharge area to the discharge point. Among the water quality parameters that are affected by this phenomena, would be the total phosphorous concentration. In the case of Lake Apopka the highest recharge areas in the vicinity are located immediately to the west of Apopka Spring. The direction of groundwater flow in the Floridian Aquifer in that area is from the recharge area to Apopka Spring. Consequently phosphorous concentrations in water discharged from Apopka Spring would be expected to vary significantly over time. This variability in phosphorous concentrations over time makes it inappropriate to rely upon a single sample when attempting to establish a long term budget for total phosphorous contributed from Apopka Spring. Having in mind the need to have more than one sample for establishing the phosphorous concentration from Apopka Spring, St. Johns used water quality data from other springs in the vicinity of Apopka Spring. To complete the data set they used three springs which had recorded values for total phosphorous, chloride concentrations and total dissolved solids that were similar to those in Apopka Springs. This gave St. Johns an additional six samples for total phosphorous to be added to the single value from Apopka Springs to arrive at an average. When the seven values were averaged they yielded a concentration of 75 milligrams per liter. That is the value that St. Johns used in calculating the contribution of Apopka Springs to the lake phosphorous budget. Had St. Johns obtained multiple samples from Apopka Springs over a long period of time this would have optimized its understanding of the long term phosphorous concentration for water discharging from the spring. However, it was not unreasonable for St. Johns to perform the calculations which it did in establishing the phosphorous concentration from Apopka Springs. INTERNAL PHOSPHOROUS LOADING The rule in question does not attempt to remediate the influence which phosphorous loading from internal sources contributes. Rather the rule, without regard for the time line for achieving St. Johns' perception of the Class III water quality standard related to phosphorous, attempts to control external loading in arriving at its anticipated standard. Zellwood asserts that the failure to address internal phosphorous loading was an arbitrary and capricious act. While actions taken to minimize the effects on the water quality caused by internal loading would improve the time course for achieving the steady state equilibrium in Lake Apopka that would achieve its Class III water quality standard for phosphorous, it is not necessary to change the circumstance of internal loading for the improvements to external loading to promote the desired outcome at an undetermined point in the future. By contrast Lake Apopka would not reach the desired Class III water quality standard without reducing external phosphorous loading. That makes the attempt at that reduction a proper beginning for restoring Lake Apopka to Class III water quality standards. Again this assumes the authority to employ a Class III water quality standard similar to the DEP standard or to utilize the DEP standard in developing the proposed rule. St. Johns' governing board has in mind projects for the future to re- vegetate behind moveable barriers, to increase the range of lake fluctuation, to remove rough fish and to construct a marsh flow-way to remove phosphorous. These projects would reduce the time required for the lake to achieve the Class III water quality standard for phosphorous. These projects are not essential to the success of using controls on external loading in restoring the lake to the Class III water quality standard for phosphorous. By contrast, without addressing external loading the other projects would not be feasible. The consequence of not adopting a rule which deals with external loading and waiting for the other proposed projects described to become available before the time that the external loading is addressed, would create a circumstance in which greater amounts of phosphorous have been stored in the sediments and must be dealt with before the lake water quality improves. Although the anticipated restoration by improving external loading is not time dependent, St. Johns has the proper confidence that the recovery will be within a reasonable time. Evidence to support this belief comes from studies of European lakes in which external phosphorous loading was reduced and the phosphorous concentration in the water column improved rather rapidly. Further, a study of Lake Tohopekaliga, a large shallow Florida lake, similar in its depth to Lake Apopka, showed that an 83 percent reduction in phosphorous load led to an 83 percent reduction in total phosphorous. Scraping soils around the edge of Lake Tohopekaliga did not significantly contribute to the decline in phosphorous. Studies in Lake Tohopekaliga also indicated that when the phosphorous load was reduced the sedimentation coefficient showed a year to year variability. That variability did not establish a trend indicating a change in the long-term sedimentation coefficient mean. The studies of that lake tended to support the idea that the sedimentation coefficient measured under current conditions at Lake Apopka is a reasonable value to use in predicting the effects of reducing phosphorous loading. Studies of other lakes such as Lake Thonotosassa, a Florida lake and Lake Shaqawa in Minnesota, showed a marked decline in phosphorous concentration in the water column when external phosphorous loading was reduced. At present Lake Apopka sediments contain available and unavailable phosphorous. Available phosphorous can potentially be used by aquatic organisms such as algae and microbes. It is released from the sediments to the water column. Unavailable phosphorous is more stable and is relatively resistant to transformation for use by organisms. It has poor availability for biological activity. In particular available phosphorous comes from the top sediment layer, the top five to ten centimeters in that layer, that becomes suspended in the water column by a wind event. Phosphorous in the second layer moves up that layer by a process referred to as diffusion. That process is slow. Available phosphorous in the second layer does not enter the water column. Approximately 30 percent of the total phosphorous that is in the lake sediments is in the available category. The remaining 70 percent becomes unavailable based upon formation of resistant organic compounds and in phosphate mineralization. By reducing the external load of phosphorous, as proposed by the rule, this diminishes a source of phosphorous for algae production in the lake. The algae then would become more dependent on uncontrollable external sources and sources released from the top layer. In summary, in this regime, biological activity would convert available phosphorous to unavailable phosphorous by forming resistant organic compounds, and chemical processes will convert phosphorous to minerals such as calcium phosphate which are unavailable. Phosphorous will become unavailable as it is buried deeper in the sediment. Moreover, phosphorous will continue to be flushed from the lake in the instances where the water is released into the Apopka Beauclair Canal. St. Johns was sufficiently conversant with the internal mechanisms for phosphorous production to proceed with the rule promulgation. ECONOMIC FEASIBILITY In preparing the rule St. Johns considered economic feasibility. Most costs associated with complying with the rule are borne by those individuals and entities who would be controlled by the nutrient budget for phosphorous in the various categories of permittees, to include pumped agricultural. There was no showing that the cost associated with administering the permit program called for in the rule would make the program economically infeasible. Under this subject, in developing its rule St. Johns did not act in a manner which is arbitrary or capricious. TAKING It was established that Zellwood has an interest in the Lake Level Canal from the bank on its property to the centerline in the canal. The proposed rule would declare the Lake Level Canal to be a work of the District. In declaring Lake Level Canal a work of the District St. Johns took into account that Zellwood is currently using the canal as a conveyance system for stormwater discharge and intake of water from the lake. By declaring the Lake Level Canal a work of the District consistent with the proposed rule St. Johns recognizes that the beneficial uses of the canal which Zellwood presently enjoys would not be denied. No other proof was presented which would tend to identify any restrictions which would be placed upon Zellwood in using the Lake Level Canal if the rule becomes law and the amount of compensation that Zellwood would be entitled to in return for those restrictions. Consequently, St. Johns has not acted arbitrarily or capriciously in declaring the Lake Level Canal a work of the District through the proposed rule as such activity would be perceived as an unreasonable interference with Zellwood's use of the canal. EQUITABLE ABATEMENT In its permitting function DEP has a procedure which is referred to as the "equitable abatement procedure". See Rule 17-4.242, Florida Administrative Code. In particular, that process applies to permits issued for stationary point source discharges. The Zellwood operation is not a stationary point source that must comply with Rule 17-4.242, Florida Administra-tive Code. There was no showing that St. Johns acted arbitrarily and capriciously by developing the proposed rule without regard for the independent jurisdiction exercised by the DEP through its equitable abatement procedures set forth in Rule 17-4.242, Florida Administrative Code. CONSENT ORDER When developing the proposed rule, St. Johns took into account the existing consent order between St. Johns and Zellwood. The proposed rule recognizes the obligations which Zellwood has under the terms of the consent order. The proposed rule does not impose greater requirements on Zellwood during the time in which the consent order is effective than the consent order establishes.
The Issue The issue is to whether to approve the application of Respondent, Lake County Water Authority (Authority), for an Environmental Resource Permit (ERP) and consent to use sovereign submerged lands authorizing a restoration project in Lake Beauclair (Lake).
Findings Of Fact Based upon all of the evidence, the following findings of fact are determined: History of the Proceeding The Authority, an independent special taxing district, was created by the Legislature in 1953 by special act as the Ocklawaha Basin Recreation and Water Conservation and Control Authority. See Ch. 29222, Laws of Fla. (1953). In 2000, it was renamed the Lake County Water Authority. Ch. 2000-492, § 2, at 745, Laws of Fla. Among its duties is to make "improvements to the streams, lakes, and canals in [Lake] [C]ounty." Id. The Department is the state agency with the authority under Part IV, Chapter 373, Florida Statutes (2009),1 to issue ERPs, as well as to act as the staff for the Board to authorize activities on sovereign submerged lands pursuant to Chapter 253, Florida Statutes, and Florida Administrative Code Rule Chapter 18-21.2 The Lake is an approximate 1,118-acre water body located south and west of U.S. Highway 441, east of State Road 19, and north of County Road 448. It is a part of the Harris Chain of Lakes and is the first lake downstream (north) of Lake Apopka, connected by the Apopka-Beauclair Canal. The Lake discharges to Lake Dora by a connection at the northeast corner of the Lake, which connects with Lake Eustis via the Dora Canal. Lake Eustis then connects with Lake Griffin by Haines Creek. See County Exhibit 3; Petitioner's Exhibit 3. The waters from the Harris Chain of Lakes eventually discharge into the Ocklawaha River and then into the St. Johns River. Beginning around World War II, intense agricultural activity, more commonly known as muck farms, took place around the shores of Lake Apopka, which resulted in significant amounts of pesticides, nutrients, and sediment being deposited in that water body. Because the Lake was at the downstream end of the Apopka-Beauclair Canal, it also received significant amounts of these contaminants. This led to a degradation of the aquatic plant community and the balance of fish and wildlife species that use the Lake. It is now characterized as a "eutrophic water body." Since the mid-1980s, steps have been taken to restore the water quality in Lake Apopka. As a part of the restoration of Lake Apopka, the District acquired ownership of former muck farms located just northwest of Lake Apopka in an area known as the Lake Apopka North Shore Restoration Project, West Marsh. The Marsh in turn is divided into a number of field units, also known as cells. In cooperation with the District and the FFWCC, over the last eight years the Authority has developed a plan to improve water quality and habitat in the Lake and four residential canals along the Apopka-Beauclair Canal. In general, the plan entails removing by hydraulic dredge sediments from an estimated 260 acres in the western portion of the Lake and from an additional 21 acres of combined residential canal segments. At least some of the dredging site is in state-owned sovereign submerged lands and requires the consent of the Board. The dredged sediment will be transported by pipeline 8.3 miles south of the Lake to Cells F and G of the West Marsh. Water from the sediment will be routed a short distance north to the Authority's Nutrient Reduction Facility (NuRF), treated to remove phosphorus and other contaminants, and then discharged downstream through the Apopka-Beauclair Canal. Due to permit conditions relating to dissolved oxygen levels, dredging activities can only take place between September 15 through June 15 of any year. Therefore, resolution of this dispute has been made on an expedited basis. On September 22, 2009, the Authority filed an application with the Department to implement its plan. See Authority Exhibit 10. Two requests for additional information were made by the Department, and responses were filed by the Authority. See Authority Exhibits 11 and 12. On June 18, 2010, the Department, through its Orlando District Office, issued its Notice of Intent to issue an ERP and consent to use sovereignty submerged lands. See Department Exhibit 10. The ERP contains a number of specific and general conditions applicable to this project, all designed to ensure that the relevant permit requirements are satisfied. On June 25, 2010, Petitioner, a former member of the Authority and a long-time advocate of restoring the Harris Chain of Lakes, filed a Petition challenging the proposed agency action on numerous grounds. Her primary objection is that the sediment will be deposited at West Marsh on top of already- contaminated soils containing pesticides from prior farming activities, which may cause "environmental harm" to humans, fish, and aquatic wildlife. She also contends that no state permit should be issued until the United States Army Corps of Engineers issues a permit for the project; that diesel fumes from the dredging equipment used on the project may pollute the air and water; that the project may violate federal, state, and local rules; and that sediment from the dredging activities in the Lake may drift downstream resulting in environmental harm to Lake Griffin, where she resides. No specific objection was raised regarding the consent to use sovereign submerged lands for dredging purposes. For the last 26 years, Petitioner has resided on Lake Griffin, which lies within the Harris Chain of Lakes. Uncontroverted evidence establishes that her property is at least 21 miles downstream from the site of the dredging activities and around 27 miles from the deposition site. The path of the restoration site to Petitioner's property involves travel north through the Lake, then across Lake Dora to Lake Eustis, northwesterly through Haines Creek, and across Lake Griffin to the southwestern area of the lake where she resides. The path from the disposal site to her property requires further travel from Cells F and G within the West Marsh, down the Apopka-Beauclair Canal to the restoration site on the Lake, and then along the described path across Lakes Beauclair and Dora, Dora Canal, Lake Eustis, Haines Creek, and Lake Griffin. According to expert testimony at hearing, the likelihood of sediment transfer from the dredging site to Lake Griffin is "scientifically inconceivable." It can be inferred that the likelihood of the treated, discharged water from the disposal site at West Marsh reaching her property is even more remote. This was not credibly contradicted. The Project The project involves the removal of 1.32 million cubic yards of human-induced sediment from an approximate 255-acre area in the southwestern part of the Lake and approximately 30,700 cubic yards from a 6.3-acre area within portions of four adjacent residential canals. Floating turbidity barriers and other measures around the dredge site in the Lake and canals will ensure that other areas of the lake system will not be impacted. The dredged material will be pumped through 8.3 miles of high density polyethylene pipe along the Apopka-Beauclair Canal to a disposal site known as Cells F and G, which are located on the west side of that Canal on property owned and operated by the District. Together, the two cells comprise around 980 acres. The sediment will be treated with polymers (a chemical process) to aid in the settling of organic solids. The supernatant water (i.e., the water overlying the deposited sediment) will then be pumped to the nearby NuRF, owned and operated by the Authority, treated with alum to remove nutrients and phosphorus, and discharged from the NuRF into the Apopka- Beauclair Canal, which ultimately discharges into the Lake. A number of problems currently exist in the Lake, including loose sediments, high nutrient concentrations, and navigational impairments. The project is designed to improve water quality by removing accumulated sediments at the mouth of the Lake that are re-suspended by wind and wave action and the propellers of motorboats, and which allow nutrients to enter the water. Also, the project is designed to improve habitat by allowing a more desirable substrate for aquatic plants to become established, and to improve navigation by removing accumulated sediment that currently impedes navigation. Therefore, the project will clearly restore that portion of the Lake to something much closer to its pre-disturbance bed conditions in a manner likely to benefit fish and wildlife, improve navigability, and eliminate re-suspension of materials from boating activities. The Authority conducted a battery of chemical and physical testing to determine whether the sediments were useful as soil amendments for agriculture or for use in wetland restoration at the inactive muck farms north of Lake Apopka. Arsenic in the sediments was present at a mean concentration within the range of natural histosols (organic wetland soils) in the State, but not at levels suitable for transfer to residential or commercial properties. All metals were within allowable concentration levels established by the United States Environmental Protection Agency for land application of biosolids at farms. Organochlorine pesticides were present at low levels. Residual pesticide concentrations, and all other metal concentrations in the sediments, would be suitable for residential, commercial, and farming properties. Based on these characteristics and analyses, Cells F and G within the West Marsh were selected as the best practicable and safe alternative for the beneficial use of the sediments. The sediments will be used to cap much higher pesticide-contaminated soils in those Cells. This will create more shallow water depths in the Cells, facilitate greater cover of the former muck farms by wetland vegetation, and partially restore historic wetland conditions that existed prior to farming and soil subsidence. The FFWCC concedes the possibility of impacts to fish and wildlife as a result of depositing spoil material into Cells F and G. While there is some potential for fish mortality in those Cells, the FFWCC believes the overall, long-term benefit to fish and wildlife in both the Lake and Cells F and G far outweigh any temporary, negative impacts that may result from the project. Further, the evidence establishes that Cells F and G currently have sediment with appreciable levels of pesticides, as well as fish that contain sufficient levels of pesticides to be hazardous to fish-eating birds. Therefore, the contaminated fish are not an environmental asset. Because of this, the District maintains deep water and thick vegetation in those Cells to discourage foraging by fish-eating birds. The deposition of the sediment will cover the existing contaminated soils with sediments having a much lower concentration of pesticides thus reducing the exposure to fish and wildlife. The evidence supports a finding that the deposition of the dredge sediments will increase the surface soil elevation in Cells F and G, which will aid the District in future restoration of emergent marsh communities on this site. Petitioner's contention that the possibility of harm to even a single contaminated fish outweighs the benefits of using that site as a depository has been rejected. Petitioner also suggested that the sediment should be transported by truck to another location, such as a hazardous waste site, or that the project should be postponed for another year until testing is completed by a prospective vendor (Clean to Green) who claims its proposed methodology (yet to be tested and scientifically validated) can treat the sediment off-site in a safer manner. Given the overwhelming and uncontroverted scientific evidence offered at hearing in support of the project and the manner in which it will be undertaken, these alternatives are not deemed to be practical, reasonable, or supported by scientific evidence. The proposed deposition site is clearly the best and safest alternative. Rule Requirements Rules 40C-4.301 and 40C-4.302 prescribe the conditions for issuance of an ERP. Generally, the first rule focuses on water quantity, environmental impacts, and water quality. The second rule generally requires that a public interest balancing test be made, and that cumulative impacts, if any, be considered. Further standards implementing the rules are found in the District's Basis of Review. The evidence supports a finding that the Authority has given reasonable assurance that the project will not cause adverse water quantity impacts, adverse flooding to on-site or off-site property, adverse impacts to existing surface water storage and conveyance capabilities, or adverse impacts on the maintenance of surface or ground water levels or surface water flows. The evidence supports a finding that the Authority has given reasonable assurance that the project will not adversely affect the quality of receiving waters or violate water quality standards. Reasonable assurance has also been given that the project will not adversely impact the value of functions provided to fish and wildlife and listed species by wetlands and other surface waters. The project will have no adverse secondary impacts. The project will not adversely affect works of the District and special basin or geographic area criteria. The Authority has given reasonable assurance that the project is capable of being performed and functioning as proposed. Further, the Authority has sufficient financial, legal, and administrative capabilities to ensure that the project will be undertaken in accordance with the terms and conditions of the permit. The evidence supports a finding that the project will not be contrary to the public interest, as defined in Rule 40C- 4.302 and Section 373.414(1)(a), Florida Statutes. All other contentions regarding the issuance of the ERP have been carefully considered and found to be without merit. Therefore, it is found that the requirements of the two rules have been met. No dispute was raised regarding the consent to use sovereign submerged lands to conduct the dredging activities. Chapter 18-21 requires that the activity must not be contrary to the public interest. As to this issue, the evidence supports a finding in favor of the Authority.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Environmental Protection enter a final order granting the application of the Authority for an ERP and consent to use sovereign submerged lands. DONE AND ENTERED this 23rd day of August, 2010, in Tallahassee, Leon County, Florida. S R. ALEXANDER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 23rd day of August, 2010.
Findings Of Fact Lake Powell Improvement Corporation is a consortium of interested owners of land comprising the majority of the Lake Powell shoreline. Camp Helen Company, one of its members, owns lake property which was formerly operated as a recreational facility for associates of Avondale Mills. Camp Helen Company now holds the property for the possibility of future development. George Jeter is one of approximately 76 persons who sent a form letter to the Department of Environmental Regulation (DER) in opposition to the designation of Lake Powell/Phillips Inlet as an Outstanding Florida Water (OFW). The rule-making proceeding to designate Lake Powell/Phillips Inlet an OFW was initiated with a petition filed on June 11, 1987, by the St. Andrews Bay Resource Management Association, a private citizens' organization formed in 1986 to help protect wildlife and resources in the St. Andrews Bay area. A public workshop was conducted by DER on September 6, 1990, in Panama City, Florida. Approximately 70 persons attended the workshop, including Bay County residents, Walton County residents, Lake Powell area property owners and representatives from various organizations. Craig Crockard, Vice President of Lake Powell Improvement Corporation, opposed the designation based on alleged degradation of property values and tax base, negative impact on growth and increase in road maintenance costs. Agency staff encouraged workshop participants and members of the public to submit information, including economic information, that would aid in the decision-making process. Only general and speculative information was received, with the exception of a response from the Department of Transportation that costs of future construction and expansion of the Phillips Inlet bridge, part of four-laning Highway 98, would be increased by $1.5 million as a result of the OFW regulations. DER sent a letter to Craig Crockard, received on April 2, 1991, requesting specifics as to the property owners' development plans and estimated economic impacts by April 5th. Crockard responded that the deadline was too short and that it was obvious that the decision had already been made. At no time, up to and including the hearing before the Environmental Regulation Commission (ERC), did Petitioners or other opponents provide information as to specific economic impacts of the proposed designation. The proposed rule would add the following area to rule 17- 302.700(9)(i), F.A.C. specifying special waters under the OFW designation: Special Waters * * * Lake Powell, Phillips Inlet, and all tributaries to Lake Powell as bounded by the following described line: Begin at the Northwest corner of Section 26, Township 2 South, Range 18 West; thence East to the Northwest corner of Section 29, Township 2 South, Range 17 West; thence South to the Northwest corner of the SW 1/4 of Section 29, Township 2 South, Range 17 West; thence East to the West line of Section 27, Township 2 South, Range 17 West, thence South to the mean high water line of the Gulf of Mexico; thence meander Northwest along the mean high water line to the West line of Section 35, Township 2 South, Range 18 West; thence North to the point of beginning ( - - 91). * * * In making its determination to recommend OFW designation for Lake Powell to the ERC, the Department compared Lake Powell to other water bodies. Lake Powell was found to be exceptionally ecologically and recreationally significant in terms of size, water quality and recreational usage. The Department makes its determination as to whether the proposed water body is exceptional by making direct comparisons to features of other water bodies, and by relying on the professional judgements of others familiar with the particular class of water bodies. Lake Powell has been compared by professionals familiar with other water bodies in the area and in their opinion it has exceptional value as an ecosystem. The Department relied on professional judgement of this type as well as its own findings when making the determination that Lake Powell was exceptional. Lake Powell is located in Bay and Walton Counties in Northwest Florida adjacent to the Gulf of Mexico. Its total surface area of 737 acres makes it the largest by far of any of a series of similar lakes in the area. Seven small streams provide fresh water to the lake; periodically Phillips Inlet, connecting the lake to the Gulf of Mexico, opens or closes. When the inlet is open, the lake becomes estuarine in nature. Most of the shoreline of Lake Powell is still undeveloped and the lake is significant in that it has experienced only minimal adverse impact from human activity. There are no permitted point source discharges to Lake Powell. It is basin-shaped, with a shallow shell, steep sandy slopes, and a flat bottom ranging from approximately 10 to 20 feet deep. Silty, high organic sediments in the water are amenable to degradation and are uniquely sensitive to pollution. Restricted flushing and the opportunity for development growth in the area add to that sensitivity. Lake Powell is a Class III waterbody. Water quality in the lake is good, and meets Class III standards; some parameters are as good as Class II standards. The low dissolved oxygen level in the lake is a result of natural conditions, is not a result of pollution, and is therefore not a violation of the Class III standard for dissolved oxygen. Lake Powell is one of the lakes in the state that is part of the water quality sampling effort known as Lake Watch. A benefit of OFW designation to this effort will be that Lake Powell, absent degradation, can serve as a control lake to compare other Lake Watch lakes throughout the State. At least 170 species of birds, (trust resources of the US Fish and Wildlife Service), have been observed and are dependent on Lake Powell. Unusual species include the piping plover (federally and state designated threatened), snowy plover (state designated threatened), least tern (state designated threatened), and bald eagle (federally designated endangered and state designated threatened). These species have a direct dependence on Lake Powell for habitat, feeding, or nesting areas. They are dependent on non-trust species such as small fishes which could be impacted by chemicals introduced to the lake. Edwin James Kepner, a biologist for the National Marine Fisheries Service, has identified three new species of nematodes which so far have been uniquely found in Lake Powell. Although nematode species are among the most abundant on earth (97,000 individuals may be found in a single rotting apple), they are a highly significant part of an ecological system and must be understood and studied for any understanding of marine communities. The lake supports a diversity of animals. At least 87 species of macrobenthic invertebrates and 67 species of fin fish inhabit the lake, a diversity based on the system's intermittent connection to the Gulf and the lake's relatively pristine condition compared to other lakes. One would expect to find even more diversity, 3 to 4 times more species, if better and more accurate sampling methods were employed. Lake Powell presents a unique nursery area, since most large predator fishes do not have access to it. The lake presently supports a variety of recreational activities, including canoeing, sailing, windsurfing, water-skiing, fishing, crabbing and picnicking. This recreational use has increased during the last five years. Lake Powell is ranked 36th out of 361 lakes statewide in a 1982 study of recreational usage. In terms of potential to the public for recreational usage, Lake Powell has three public access points to the lake, and a possible fourth. Public access is gained by a Bay County public park and by way of Gulf View Drive, which is owned by Bay County and used to launch boats. There is a public dock in Walton County which is also used extensively. The fourth access is currently the subject of an inquiry by the Bay County Audubon Society. The unusual quality of recreational experience lies in the pristine nature of the lake and the fact that it is located not far from the Miracle Strip in Panama City Beach. The ERC Commissioners, who were taken on a tour of the lake, were able to contrast the two areas and found that Lake Powell had unusual recreational value. Lake Powell provides an exceptional educational opportunity, and with its many different types of habitat it is a compact, manageable educational laboratory. As compared to the St. Andrews Bay System it would be much easier to collect samples, obtain information on biotic communities and generally conduct research on the effectiveness of regulatory programs, due to the manageable size of the lake. The proposed amendment to Rule 17-302.700(9)(i), F.A.C., to designate Lake Powell as an OFW would potentially affect future Department permit applicants by requiring they provide the Department with reasonable assurances that the proposed project is clearly in the public interest and that the proposed project would not lower existing ambient water quality standards (Rule 17-4.242, F.A.C.); by requiring that direct stormwater discharges into the lake include an additional 50% treatment level (Rule 17-25.025(9), F.A.C.); and by reducing the exemption for private residential docks from 1000 square feet to 500 square feet (Rule 17-4.04(9)(c), F.A.C.). These requirements will result in increased costs to permit applicants, although the costs cannot be calculated at this time since there are no such projects firmly proposed to the Department. The primary beneficial effect of the proposed rule would be the protection of future water quality based on existing ambient water quality standards at time of OFW designation. Pursuant to Section 120.54(2), F.S., an Economic Impact Statement (EIS) was prepared by the Department. Section 120.54(2)(b), F.S., requires the statement to include: * * * An estimate of the cost to the agency of the implementation of the proposed action, including the estimated amount of paperwork; An estimate of the cost or the economic benefit to all persons directly affected by the proposed action; An estimate of the impact of the proposed action on competition and the open market for employment, if applicable; A detailed statement of the data and method used in making each of the above estimates; and An analysis of the impact on small business as defined in the Florida Small and Minority Business Assistance Act of 1985. Additionally, Rule 17-302.700(4)(e) provides: An economic impact analysis consistent with Chapter 120, shall be prepared which provides a general analysis of the impact on growth and development including such factors as impacts on planned or potential industrial, agricultural, or other development or expansion. It is undisputed that the EIS properly addressed the costs of implementation to the Department. The EIS identified the kind of Department permit applicant that would potentially be affected by the rule amendment, and what kinds of developmental impacts could be expected by operation of other Department rules. The EIS did not identify any specific costs that would be attributable to the rule, as the Department was unaware of any specific development plans for the lake that would be subject to the Department rules. Existing development activities are grandfathered and would not be affected by the more stringent requirements. The Department stated in its EIS that the overall costs imposed on future development due to the proposed OFW designation would depend on both the nature of the development and its impact on the ambient water quality of the lake. Since the type and nature of future development in the area is uncertain, an estimate of the potential aggregate costs associated with the proposed OFW designation could not be made at the time the EIS was prepared. The EIS properly addressed the costs of the proposed rule to the parties, based upon the facts as known to the Department. The benefits to the public of the rule were stated to be largely environmental, as a result of protection of future ambient water quality standards in the lake. The EIS cited an economic benefit to land owners around the lake in the form of enhanced property values due to water quality protections of the OFW designation, water quality being an important variable in determining property values of waterfront property. That property values would be enhanced is based on the DER economist's study of another state's experience and experience with OFW designation in other Florida counties. The EIS properly addresses the benefits of the rule. The EIS states that there will be no significant effect on competition as a result of the proposed OFW designation; Petitioners have not presented any evidence to the contrary. The EIS adequately addresses the rule's effect on competition. The EIS states that the proposed OFW designation is not expected to create any significant adverse disproportionate impacts on small businesses, as required by Section 120.54(2)(b)5., F.S. As Petitioners have not introduced any evidence to the contrary, the EIS adequately addresses this issue. The EIS states that appropriate economic analysis techniques were employed preparing the EIS. Petitioners participated in the rulemaking process; they attended the Panama City workshop when economic information was solicited; they submitted written comments, none of which provided specific economic information; and they participated in the ERC hearing but offered no evidence to the Commission regarding economic impacts of the rule. The type of information they suggest that the Department should consider was not submitted by them, or anyone else, during the rulemaking process or this hearing. The evidence shows that the Department considered all comments submitted throughout the rulemaking process in making the recommendation of OFW designation to the ERC. The EIS properly explains the data and methodology used in its preparation, and this data and methodology was adequate to estimate the economic impacts of the rule. In January 1991, the Bay County Board of County Commissioners amended the County's comprehensive plan to provide special protection for Lake Powell. These provisions include more stringent requirements for stormwater retention and detention, an objective to maintain Lake Powell's water quality at its present level, restriction on use of household septic tanks, designation of a low-density residential zone, and prohibition of point source discharges which would lower existing water quality. (Joint Exhibit #1, Appendix D) Both parties have invoked the plan amendments for their own purpose. Petitioners argue that the plan amendments provide the same or greater protection than the proposed OFW designation and that the designation is not needed. This argument ignores the fact that at least 10% of the lake lies within Walton County, outside Bay County's jurisdiction. DER did not require Bay County to amend its plan and could not require it to maintain the new Lake Powell protections indefinitely. The OFW designation does not detract from or conflict with the local government's commendable initiative, but rather augments it. Respondent, DER, addresses the plan in its modified EIS where it discusses the contention by the Department of Transportation (DOT) that OFW designation will add $1.5 million in costs to widen a road at the Phillips Inlet bridge. DER's economist concedes that designation will result in additional costs and has discussed that in the EIS. Because he has not received back-up data from DOT he is unable to confirm that the cost will be as much as DOT asserts. He also attributes the increase to the new stormwater requirements of the Bay County comprehensive plan, and concludes the additional costs due to OFW designation might be zero. (Joint Exhibit #2, p. 7) Even if misplaced, the attribution of costs does not invalidate the EIS or the proposed designation. The EIS generally describes potential costs and provides a basis to weigh the environmental, social and economic costs against the environmental, social and economic benefits. In summary, the facts above support the ERC's finding that the waters selected for designation are of exceptional recreational or ecological significance and the benefits of designation outweigh its costs.
The Issue The issue here presented concerns the entitlement of the Applicant/Respondent, Walker G. Miller, to construct an addition to his existing boat house of approximately 450 square feet, and an addition to his existing chain link fence, both of which are located on Lake Down, Florida. The Respondent, Department of Environmental Regulation, has indicated its intention to grant the permit application request and the Petitioners, Milton and Gail Hess, and David Storey and others, have opposed the Department's intention to grant the permit.
Findings Of Fact The Petitioner in Case No. 80-1769, Milton Hess, is an adjacent landowner to the Applicant/Respondent, Walker G. Miller, with property located on Lake Down, near Windermere, in Orange County, Florida. The Petitioners in Case No. 80-1770, David Storey and others, are also landowners on Lake Down. Applicant's parcel is located on Down Point, which is a peninsular extending from the Lakes's southern shore. The project as contemplated by the Applicant is the construction of a 15 foot by 30 foot unenclosed addition on the north side of an existing dock/boathouse combination located on Lake Down. The 450 square foot addition is to be utilized as a storage room adjacent to the boathouse portion of his existing structure. The present structure has a total surface area of approximately 825 square feet. Additionally, by amendment to the application made on August 13, 1980, Applicant proposes to construct a chain link fence from the south property line to the dock facility. Lake Down is one of the waterbodies that constitutes the Butler Chain- of Lakes. The Lake is characterized by outstanding water quality and diversified biological resources. The Chain-of Lakes is widely recognized as the outstanding aquatic resource in the State, as far as water quality is concerned. Development on Lake Down is light, with widely scattered residential units separated by expanses of citrus groves. The construction of the addition will not significantly impact Lake Down or the Butler Chain-of Lakes, either on a long-term or short-term basis. The shading effect of the structure will result in a slight decline of rooted aguatic vegetation. However, such decline should be minimal. Further, reasonable assurances have been given that the proposed project would not result in any violations of State water quality criteria or standards. The existing dock structure now obstructs a portion of the view of the lake enjoyed by Petitioner Hess. However, by constructing the proposed addition on the north side of the existing boathouse, no further impediment of the view will occur.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that a permit be granted by the Department of Environmental Regulation to Walker G. Miller to construct an addition to his boathouse and a chain link Fence on Lake Down as more specifically described in his amended application. DONE and ENTERED this 2nd day of February, 1981, in Tallahassee, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 Filed with the Clerk of the Division of Administrative Hearings this 2nd day of February, 1981. COPIES FURNISHED: David Storey Route 3, Box 929 Orlando, Florida 32811 Jack Ezzard and Kathryn Ezzard Route 3, Box 925 Orlando, Florida 32811 Tari Kazaros Route 3, Box 924 Orlando, Florida 32811 Mrs. H. D. Barrarly Post Office Box 203 Gotha, Florida 32734 Paula M. Harrison Post Office Box 203 Gotha, Florida 32734 Ava Careton Route 3, Box 926 Orlando, Florida 32811 Nikki Clagh Route 3, Box 928 Orlando, Florida 32811 Milton and Gail Hess 4413 Down Point Lane Windermere, Florida 32786 Walker G. Miller Post Office Box 348 Windermere, Florida 32786 B. J. Heller, Esquire 644 West Colonial Drive Orlando, Florida 32804 Richard D. Lee, Esquire Assistant General Counsel Department of Environmental Regulation Twin Towers Office Building 2600 Blair Stone Road Tallahassee, Florida 32301
The Issue The issues in this case are whether IP is entitled to issuance of National Pollutant Discharge Elimination System (NPDES) Permit Number FL0002526-001/001-IW1S ("the proposed permit"), Consent Order No. 04-1202, Authorization for Experimental Use of Wetlands Order No. 04-1442, and Waiver Order No. 04-0730 (collectively, "the Department authorizations"), which would authorize IP to discharge treated industrial wastewater from its paper mill in Cantonment, Escambia County, Florida, into wetlands which flow to Elevenmile Creek and Perdido Bay.
Findings Of Fact Introduction A. The Parties The Department is the state agency authorized under Chapter 403, Florida Statutes (2006),2 to regulate discharges of industrial wastewater to waters of the state. Under a delegation from the United States Environmental Protection Agency (EPA), the Department administers the NPDES permitting program in Florida. IP owns and operates the integrated bleached kraft paper mill in Cantonment, Escambia County, Florida. FOPB is a non-profit Alabama corporation3 established in 1988 whose members are interested in protecting the water quality and natural resources of Perdido Bay. FOPB has approximately 450 members. About 90 percent of the members own property adjacent to Perdido Bay. James Lane is the President of FOPB. Mellita A. Lane, Zachary P. Lane, Peter A. Lane, and Sarah M. Lane are the adult children of Dr. Jacqueline Lane and James Lane. Dr. Lane and James Lane live on property adjacent to Perdido Bay with their son Peter. The Adjacent Waters The mill's wastewater effluent is discharged into Elevenmile Creek, which is a tributary of Perdido Bay. The creek flows southwest into the northeastern portion of Perdido Bay. Elevenmile Creek is a freshwater stream for most of its length but is sometimes tidally affected one to two miles from its mouth. Elevenmile Creek is designated as a Class III water. Perdido Bay is approximately 28 square miles in area and is bordered by Escambia County on the east and Baldwin County, Alabama on the west. The dividing line between the states runs north and south in the approximate middle of Perdido Bay. U.S. Highway 90 crosses the Bay, going east and west, and forms the boundary between what is often referred to as the "Upper Bay" and "Lower Bay." The Bay is relatively shallow, especially in the Upper Bay, ranging in depth between five and ten feet. Perdido Bay is designated as a Class III water. Sometime around 1900, a manmade navigation channel was cut through the narrow strip of land separating Perdido Bay from the Gulf of Mexico. The channel, called Perdido Pass, allowed the salt waters of the Gulf to move with the tides up into Perdido Bay. Depending on tides and freshwater inflows, the tidal waters can move into the most northern portions of Perdido Bay and even further, into its tributaries and wetlands. The Perdido River flows into the northwest portion of Perdido Bay. It is primarily a freshwater river but it is sometimes tidally influenced at and near its mouth. The Perdido River was designated an Outstanding Florida Water (OFW) in 1979. At the north end of Perdido Bay, between Elevenmile Creek and the Perdido River, is a large tract of land owned by IP called the Rainwater Tract. The northern part of the tract is primarily freshwater wetlands. The southern part is a tidal marsh. Tee and Wicker Lakes are small (approximately 50 acres in total surface area) tidal ponds within the tidal marsh. Depending on the tides, the lakes can be as shallow as one foot, or several feet deep. A channel through the marsh allows boaters to gain access to Tee and Wicker Lakes from Perdido Bay. The Mill 1. Production Florida Pulp and Paper Company first began operating the Cantonment paper mill in 1941. St. Regis Paper Company (St. Regis) acquired the mill in 1946. In 1984, Champion International Corporation (Champion) acquired the mill. Champion changed the product mix in 1986 from unbleached packaging paper to bleached products such as printing and writing grades of paper. In 2001, Champion merged with IP, and IP took over operation of the mill. The primary product of the mill continues to be printing and writing paper. The mill is integrated, meaning that it brings in logs and wood chips, makes pulp, and produces paper. The wood is chemically treated in cookers called digesters to separate the cellulose from the lignin in the wood because only the cellulose is used to make paper. Then the "brown stock" from the digesters goes through the oxygen delignification process, is mixed with water, and is pumped to paper machines that make the paper products. There are two paper machines located at the mill. The larger paper machine, designated P5, produces approximately 1,000 tons per day of writing and printing paper. The smaller machine, P4, produces approximately 400 to 500 tons per day of "fluff pulp." 2. The Existing Wastewater Treatment Plant The existing wastewater treatment plant (WWTP) at the mill is described in the revised NPDES permit as a "multi-pond primary and secondary treatment system, consisting of a primary treatment system (primary settling basin, polymer addition, two solids/sludge dewatering basins, and a floating dredge), and secondary treatment system (four ponds in series; two aerated stabilization basins with approximately 2,200 horsepower (HP) of aeration capacity, a nutrient feed system, two non-aerated polishing ponds and a final riffle section to re-aerate the effluent)." The WWTP is a system for reducing the biological oxygen demand (BOD) of the mill's wastewater by bacteria. IP’s wastewater is nutrient deficient when it enters the WWTP. Nutrients in the form of phosphorus and nitrogen must be added for the growth of bacteria. The WWTP begins with a primary settling basin in which suspended solids settle to the bottom. The solids form a sludge that is pumped by hydraulic dredge into two dewatering basins. The dewatering basins are used alternately so that, as one pond is filled, water is removed from the other pond. After being dewatered, the sludge is removed and allowed to dry. Then, it is transported to a landfill located about five miles west of the mill on land owned by IP. The water removed from the dewatering basins moves into to the first aeration basin. The aeration basin has floating aerator devices that add oxygen to facilitate biological conversion of the wastewater. The wastewater then flows sequentially through three more basins where there is further oxygenation and settling of the biological solids. The discharge from the fourth settling basin flows through a riffle section where the effluent is aerated using a series of waterfalls. This is the last element of the treatment process from which the mill's effluent enters waters of the state. Chemicals are added during the treatment process to control phosphorus and color. Chemicals are also added to suppress foam. Sanitary wastewater from the mill, after pretreatment in an activated sludge treatment system, is "sewered" to the mill's WWTP and further treated in the same manner as the industrial wastewater. A separate detention pond collects and treats stormwater from onsite and offsite areas and discharges at the same point as the wastewater effluent from the WWTP. Stormwater that falls on the industrial area of the mill is processed through the WWTP. The discharge point from the WWTP, and the point at which the effluent is monitored for compliance with state effluent limitations, is designated D-001, but is also called the Parshall Flume. The effluent is discharged from the Parshall Flume through a pipe to an area of natural wetlands. After passing through the wetlands, the combined flow runs through a pipe that enters Elevenmile Creek from below the surface. This area is called the "boil" because the water can be observed to boil to the surface of Elevenmile Creek. From the boil, the mill effluent flows approximately 14 miles down (apparently misnamed) Elevenmile Creek to upper Perdido Bay. Regulatory History of the Mill Before 1995, the mill had to have both state and federal permits. The former Florida Department of Environmental Regulation (DER) issued St. Regis an industrial wastewater operating permit in 1982 pursuant to Chapter 403, Florida Statutes. The EPA issued St. Regis an NPDES permit in 1983 pursuant to the Clean Water Act. When it acquired the facility in 1984, Champion continued to operate the mill under these two permits. In 1986, Champion obtained a construction permit from DER to install the oxygen delignification technology and other improvements to its WWTP in conjunction with the conversion of the production process from an unbleached to a modified bleached kraft production process. In 1987, Champion applied to DER for an operating permit for its modified WWTP and also petitioned for a variance from the Class III water quality standards in Elevenmile Creek for iron, specific conductance, zinc, and transparency. DER's subsequent proposal to issue the operating permit and variance was formally challenged.4 In 1988, while the challenges to the DER permit and variance were still pending, Champion dropped its application for a regular operating permit and requested a temporary operating permit (TOP), instead. In December 1989, DER and Champion entered into Consent Order No. 87-1398 ("the 1989 Consent Order"). The 1989 Consent Order included an allegation by DER that the mill's wastewater discharge was causing violation of state water quality standards in Elevenmile Creek for dissolved oxygen (DO), un-ionized ammonia, and biological integrity. The 1989 Consent Order authorized the continued operation of the mill, but established a process for addressing the water quality problems in Elevenmile Creek and Perdido Bay and bringing the mill into compliance in the future. Champion was required to install equipment to increase the DO in its effluent within a year. Champion was also required to submit a plan of study and, 30 months after DER's approval of the plan of study, to submit a study report on the impacts of the mill's effluent on DO in Elevenmile Creek and Perdido Bay and recommended measures for reducing or eliminating adverse impacts. The study report was also supposed to address the other water quality violations caused by Champion. A comprehensive study of the Perdido Bay system was undertaken by a team of 24 scientists lead by Dr. Robert Livingston, an aquatic ecologist and professor at Florida State University. The initial three-year study by Dr. Livingston's team of scientists was followed by a series of related scientific studies, which will be referred to collectively in this Recommended Order as "the Livingston studies." The 1989 Consent Order had no expiration date, but it was tied to the TOP, which had an expiration date of December 1, 1994. Champion was to be in compliance with all applicable water quality standards by that date. The TOP established the following specific effluent discharge limitations for the mill: Monthly Average Maximum Biological Oxygen Demand (BOD) (Mar-Oct) 4,500 lbs/day 6,885 lbs/day (Nov-Feb) 5,100 lbs/day 6,885 lbs/day Total Suspended Solids (TSS) (Mar-Oct) 8,000 lbs/day 27,000 lbs/day (Nov-Feb) 11,600 lbs/day 27,000 lbs/day Iron 3.5 mg/l Specific Conductance 2,500 micromhos/cm Zinc .075 mg/l The limits stated above for iron, specific conductance, and zinc were derived from the variance granted to Champion. Champion was also granted variances from the water quality standards for biological integrity, un-ionized ammonia, and DO. The 1989 Consent Order, TOP, and variance were the subject of the Recommended Order and Final Order issued in Perdido Bay Environmental Association, Inc. v. Champion International Corporation, 89 ER FALR 153 (DER Nov. 14, 1989). Champion's deviation from the standards for iron, zinc, and specific conductance pursuant to the variance was determined to present no significant risk of adverse effect on the water quality and biota of Elevenmile Creek and Perdido Bay. The mill effluent's effect on transparency (reduced by color in the mill effluent) was considered a potentially significant problem. However, because it was found that there was no practicable means known or available to reduce the color, and there was insufficient information at that time to determine how Champion's discharge of color was affecting the biota, Champion was allowed to continue its discharge of color into Elevenmile Creek pending the results of the Livingston studies. In the administrative hearing, the petitioners argued that it was unreasonable to put off compliance for five years, but the hearing officer determined that five years was reasonable under the circumstances. One finding in the Recommended Order and a reason for recommending approval of the TOP and Consent Order was: After the studies referred to in the consent order, the Department will not allow Champion additional time to study problems further. Significant improvements will be required within the five year period and at the end of that period, the plant will be in compliance with all water quality standards or will be denied an operating permit, with related enforcement action. The requirement of the 1989 Consent Order that Champion be in compliance with all applicable standards by December 1994, was qualified with the words "unless otherwise agreed." In considering this wording, the hearing officer opined that any change in the compliance deadline "would require a new notice of proposed agency action and point of entry for parties who might wish to contest any modification in the operational requirements, or changes in terms of compliance with water quality standards." The mill was not in compliance with all water quality standards in December 1994. No enforcement action was taken by the Department and no modification of the 1989 Consent Order or TOP was formally proposed that would have provided a point of entry to any members of the public who might have objected. Instead, the Department agreed through correspondence with Champion to allow Champion to pursue additional water quality studies and to investigate alternatives to its discharge to Elevenmile Creek. In 1994 and 1995, Champion applied to renew its state and federal wastewater permits, which were about to expire. The Department and EPA notified Champion that its existing permits were administratively extended during the review of the new permit applications. Today, the Cantonment mill is still operating under the 1989 TOP which, due to the administrative extension, did not terminate in December 1994, as stated on its face. In November 1995, following EPA's delegation of NPDES permitting authority to the Department, the Department issued an order combining the state and federal operating permits into a single permit identified as Wastewater Permit Number FL0002526-002-IWF/MT. In summary, the permit requirements currently applicable to the operation of the Cantonment paper mill are contained in the following documents: January 3, 1983, EPA NPDES Permit December 13, 1989, DER Temporary Operating Permit (TOP) December 13, 1989, DER Consent Order December 12, 1989, DER Variance November 15, 1995, DEP Order (combining the NPDES permit and the State-issued wastewater permit) April 22, 1996, DEP Letter (clarifying November 15, 1995, Order regarding 1983 NPDES Permit) During the period from 1992 to 2001, more water quality studies were conducted and Champion investigated alternatives to discharging into upper Elevenmile Creek, including land application of the effluent and relocation of the discharge to lower Elevenmile Creek or the Escambia River. In 2001, IP and Champion merged and IP applied to the Department to have the mill permit and related authorizations transferred to IP. Dr. Lane formally challenged the proposed transfer, but she was determined to lack standing. One conclusion of law in the Recommended Order issued in the 2001 administrative case was that the mill was in compliance with the consent order, TOP, and variance. That conclusion was not based on a finding that Champion was in compliance with all applicable water quality standards, but that the deadline for compliance (December 1, 1994) had been extended indefinitely by the pending permit renewal application. In 2001, Dr. Lane twice petitioned the Department for a declaratory statement regarding the Department's interpretation of certain provisions of the 1989 Consent Order. The first petition was denied by the Department because Dr. Lane failed to adequately state her interests and because she was a party in a pending case in which the Consent Order was at issue. Dr. Lane second petition was denied for similar reasons. Over 14 years after the deadline established in the 1989 TOP for the mill to be in compliance with all applicable standards in Elevenmile Creek, IP is still not meeting all applicable standards. However, the combination of (1) Consent Order terms that contemplated unspecified future permit requirements based on yet-to-be-conducted studies, (2) the wording in the TOP that tied the deadline for compliance to the expiration of the TOP, and (3) the administrative extension of the TOP, kept the issue of Champion's and IP's compliance in a regulatory limbo. It increased the Department's discretion to determine whether IP was in compliance with the laws enacted to protect the State's natural resources, and reduced the opportunity of interested persons to formally disagree with that determination. The Proposed Authorizations A. In General In September 2002, while Champion's 1994 permit renewal application was still pending at DEP, IP submitted a revised permit renewal application to upgrade the WWTP and relocate its discharge. The WWTP upgrades consist of converting to a modified activated sludge treatment process, increasing aeration, constructing storm surge ponds, and adding a process for pH adjustment. The new WWTP would have an average daily effluent discharge of 23.8 million gallons per day (mgd). IP proposes to convey the treated effluent by pipeline 10.7 miles to a 1,464-acre wetland tract owned by IP5, where the effluent would be distributed over the wetlands as it flows to lower Elevenmile Creek and upper Perdido Bay. IP revised its permit application again in October 2005, to obtain authorization to reconfigure the mill to produce unbleached brown paper for various grades of boxes. If the mill is reconfigured, only softwood (pine) would be used in the new process. On April 12, 2005, the Department issued a Notice of Intent to Issue the proposed NPDES permit, together with Consent Order No. 04-1202, Authorization for Experimental Use of Wetlands Order No. 04-4442, and Waiver Order No. 04-0730. An exemption from water quality criteria in conjunction with the experimental use of wetlands for wastewater treatment is provided for in Florida Administrative Code Rule 62-660.300(1). The proposed exemption order would exempt IP from Class III water quality criteria for pH, DO, transparency, turbidity, and specific conductance. The proposed waiver order is associated with the experimental use of wetlands exemption and relieves IP of the necessity to comply with two exemption criteria related to restricting public access to the area covered by the exemption. The Department and IP contend that restricting public access to Tee and Wicker Lakes is unnecessary. The proposed Consent Order is an enforcement document that is necessary if the mill is to be allowed to operate despite the fact that its wastewater discharge is causing violations of water quality standards. A principal purpose of the proposed Consent Order is to impose a time schedule for the completion of corrective actions and compliance with all state standards. The proposed Consent Order would supersede the 1989 Consent Order. The Proposed NPDES Permit 1. WWTP Upgrades IP's primary objective in upgrading the WWTP was to reduce the nitrogen and phosphorus in the mill's effluent discharge. The upgrades are designed to reduce un-ionized ammonia, total soluble nitrogen, and phosphorus. They are also expected to achieve a modest reduction of BOD and TSS. Upgraded pond 1 is expected to convert soluble BOD to suspended solids and to accomplish other biological conversions seven or eight times faster than the current pond 1. The modification of pond 3 to an activated sludge system is expected to more rapidly remove and recycle the solids back into pond 1. Pond 3 will have a much larger bacterial population to treat the effluent. There would also be additional pH control at the end of pond 3. IP would continue to use its Rock Crossing Landfill for disposal of wastewater sludge removed from the WWTP. Authorization for the landfill is part of the proposed NPDES permit. Groundwater monitoring beneath the landfill is required. The WWTP upgrades would include increased storm surge capacity by converting two existing aeration and settling basins (ponds 2 and 4) to storm surge basins. The surge basins would allow the mill to manage upsets and to withstand a 25-year, 24-hour storm event of 11 inches of rain. Rainfall that falls into the production areas would flow to the WWTP, and be impounded in ponds 2 and 4. After the storm event this impounded water would flow back through the WWTP where it would be treated before flowing through the compliance point and into the pipeline to the wetland tract. The Department required IP to monitor for over 129 pollutants in its stormwater runoff from the mill’s manufacturing facility, roads, parking lots, and offsite nonpoint sources. No pollutants were found in the stormwater at levels of concern. The average volume of mill discharge would be mgd. IP plans to obtain up to 5 mgd of treated municipal wastewater from a new treatment facility planned by the Emerald Coast Utility Authority (ECUA), which would be used in the paper production process and would reduce the need for groundwater withdrawals by IP for this purpose. The treated wastewater would enter the WWTP along with other process wastewater, be treated in the same manner in the WWTP, and become part of the effluent conveyed through the pipeline to the wetland tract. 2. Effluent Limitations The effluent limitations required by the proposed permit include technology-based effluent limits (TBELs) that apply to the entire pulp and paper industry. TBELs are predominantly production-based and are designed to limit the amount of pollutants that may be discharged per ton of product produced. The Cantonment mill has not had a problem in meeting TBELs. The TBELs that IP must meet are in the "Cluster Rule" promulgated by the EPA and adopted by the Department. The mill already meets the TBELS applicable to its current bleaching operation. In fact, EPA determined that the mill was performing in the top 5 percent of similar mills in the nation. The mill would have to meet the TBELs for a brown kraft operation if that conversion is made by IP. The proposed permit also imposes water quality- based effluent limits (WQBELs) that are specific to the Cantonment mill and the waters affected by its effluent discharge. The WQBELs for the mill are necessary for certain constituents of the mill's effluent because the TBELs, alone, would not be sufficient to prevent water quality criteria in the receiving waters from being violated. For example, the TBEL for BOD for similar pulp and paper mills is 15,943 pounds per day (ppd) on a monthly average, but the WQBEL for BOD for the Cantonment mill would be 4,500 ppd in summer and 5,100 ppd in winter. Dr. Livingston developed an extensive biological and chemical history of Perdido Bay and then evaluated the nutrient loadings from Elevenmile Creek over a 12-year period to correlate mill loadings with the biological health of the Bay. Because Dr. Livingston determined that the nutrient loadings from the mill that occurred in 1988 and 1989 did not adversely impact the food web of Perdido Bay, he recommended effluent limits for ammonia nitrogen, orthophosphate, and total phosphorous that were correlated with mill loadings of these nutrients in those years. The Department used Dr. Livingston’s data, and did its own analyses, to establish WQBELs for orthophosphate for drought conditions and for nitrate-nitrite. WQBELs were ultimately developed for total ammonia, orthophosphate, nitrate-nitrite, total phosphorus, BOD, color, and soluble inorganic nitrogen. The WQBELs in the proposed permit were developed to assure compliance with water quality standards under conditions of pollutant loadings at the daily limit (based on a monthly average) during low flow in the receiving waters. The proposed permit also establishes daily maximum limits (the most that can be discharged on any single day). For BOD, the daily maximum limit is 9,000 ppd. William Evans, the Department employee with primary responsibility for the technical review of the proposed Department authorizations, said that setting the daily maximum limit at twice the monthly average was a standard practice of the Department. The maximum daily limits are not derived from the Livingston studies. Dr. Glen Daigger, a civil and environmental engineer, designed a model for the WWTP and determined the modifications necessary to enable the WWTP's discharge to meet all TBELs and WQBELs. Petitioners did not dispute that the proposed WWTP is capable of achieving the TBELs and WQBELs. Their main complaint is that the WQBELs are not adequate to protect the receiving waters. 3. Discharge to the Wetland Tract IP proposes to relocate its discharge to the wetland tract as a means to end decades of failure by the mill to meet water quality standards in Elevenmile Creek. Discharging to the wetland tract, which flows to the marine waters of lower Elevenmile Creek and Perdido Bay, avoids many of the problems associated with trying to meet the more stringent water quality standards applicable in a freshwater stream. An effluent distribution system is proposed for the wetland tract to spread the effluent out over the full width of the wetlands so that their full assimilative capacity is utilized. This would be accomplished by a system of berms running perpendicular to the flow of water through the wetlands, and gates and other structures in and along the berms to gather and redistribute the flow as it moves in a southerly direction toward Perdido Bay and lower Elevenmile Creek. The design incorporates four existing tram roads that were constructed on the wetland tract to serve the past and present silviculture activities there. The tram roads, with modifications, would serve as the berms in the wetland distribution system. As the effluent is discharged from the pipeline, a point designated D-003, it would be re-aerated6 and distributed across Berm 1 through a series of adjustable, gated openings. Mixing with naturally occurring waters, the effluent would move by gravity to the next lower berm. The water will re-collect behind each of the vegetated berms and be distributed again through each berm. The distance between the berms varies from a quarter to a half mile. Approximately 70 percent of the effluent discharged at D-003 would flow by gravity a distance of approximately 2.3 miles to Perdido Bay. The remaining 30 percent of the effluent would flow a shorter distance to lower Elevenmile Creek. A computer simulation performed by Dr. Wade Nutter, an expert in hydrology, soils, and forested wetlands, indicated that the effluent discharged at D-003 will move through the wetland tract at a velocity of approximately a quarter-of-a-foot per second and the depth of flow across the wetland tract will be about one-half inch. It would take four or five days for the effluent to reach lower Elevenmile Creek and Perdido Bay. As the treated effluent flows through the wetland tract, there will be some removal of nutrients by plants and soil. Nitrogen and phosphorous are expected to be reduced approximately ten percent. BOD in the effluent is expected to be reduced approximately 90 percent. Construction activities associated with the effluent pipeline and berm modifications in the wetland tract were permitted by the Department in 2003 through issuance of a Wetland Resource Permit to IP. The United States Army Corps of Engineers has also permitted this work. No person filed a petition to challenge those permits. A wetland monitoring program is required by the proposed permit. The stated purpose of the monitoring program is to assure that there are no significant adverse impacts to the wetland tract, including Tee and Wicker Lakes, and is referred to as the No Significant Adverse Impact (NSAI) analysis. A year of "baseline data" on the wetlands and Tee and Wicker Lakes was collected and submitted to the Department for use in developing the NSAI analysis, but was not made a part of the record in this case. After the discharge to the wetland tract commences, the proposed permit requires IP to submit wetland monitoring reports annually to the Department. A monitoring program was also developed by Dr. Livingston and other IP consultants to monitor the impacts of the proposed discharge on Elevenmile Creek and Perdido Bay. It was made a part of the proposed permit. The Exemption for Experimental Use of Wetlands Florida Administrative Code Rule 62-660.300(1) provides an exemption from water quality criteria for the experimental use of wetlands. The proposed Authorization for Experimental Use of Wetlands Order would exempt IP from Class III water quality criteria for pH, DO, transparency, turbidity, and specific conductance. The proposed exemption order sets forth "interim limits" for pH, DO, color, turbidity, and specific conductance. The proposed exemption order also states that IP may petition for alternative water quality criteria pursuant to Florida Administrative Code Rule 62- 66D.300(1)(b)(c) and (d). The exemption is for 5 years beginning with the commencement of discharge into the wetland tract at D-003. The exemption it can be renewed by IP by application to the Department. The Waiver To qualify for the experimental use of wetlands exemption, Florida Administrative Code Rules 62- 660.300(1)(a)3 and 4 require, respectively, that the public be restricted from the exempted wetland area and that the waters not be used for recreation. IP proposes to prevent public access to the area of the wetland tract where the effluent distribution system is located. This is the freshwater area of the wetland tract and includes the four berms. However, IP does not want, nor believe it is necessary, to prevent public access and recreation on Tee and Wicker Lakes within the tidal marsh below berm 4. These lakes are accessible by boat from Perdido Bay and are used now by the public for boating and fishing. The Proposed Consent Order The proposed Consent Order establishes a schedule for the construction activities associated with the proposed WWTP upgrades and the effluent pipeline and for incremental relocation of the mill's discharge form Elevenmile Creek to the wetland tract. IP is given 24 months to complete construction activities and begin operation of the new facilities. At least 25 percent of the mill's effluent must be diverted to the wetland tract. At least 25 percent of the effluent is to be diverted to the wetland tract when the new facilities begin operations. The volume of effluent diverted to the wetlands is to increase another 25 percent every three months thereafter so that three years after issuance of the permit 100 percent of the effluent is being discharged into the wetland tract and there is no longer a discharge at D-001 into Elevenmile Creek.7 The proposed Consent Order establishes interim effluent limitations that would apply immediately upon the effective date of the Consent Order and continue during the 24-month construction period when the mill will continue to discharge into Elevenmile Creek. Other interim effluent limits would apply during the 12-month period following construction when the upgraded WWTP would be operating and the effluent would be incrementally diverted from Elevenmile Creek to the wetland tract. A third set of interim effluent limits would apply at D-003 when 100 percent of the discharge is into the wetland tract. They include the interim limits for specific conductance, pH, DO, color, and turbidity established through the experimental use of wetland exemption. The proposed Consent Order requires IP to submit a report within six months with the results of the 2004 transparency study. The Department must be satisfied that the study shows the transparency standard will not be violated before the wetlands can be used for the discharge. This report has already been submitted to the Department, but the Department has not yet completed its review of the report. Nevertheless, it was admitted into the record as IP Exhibit 79. The proposed Consent Order provides that, in the event IP's does not receive treated sanitary wastewater from the planned ECUA facility, IP will notify the Department and submit an alternate compliance plan to the Department for the Department's approval. The submittal and approval of an alternate compliance plan would extend the time for compliance with water quality standards by another six months. The Department amended the proposed Consent Order at the conclusion of the hearing to provide for notice to the public and an opportunity for persons to object to the Department's action on any alternate compliance plan. The Consent Order requires a "Plan of Action" to determine "whether there remains a critical period for ortho-phosphate loading to lower Elevenmile Creek and Perdido Bay." The proposed Consent Order requires IP to submit within 97 months (which would allow for five years of discharge to the wetland tract) a final report on whether there has been significant adverse impacts in the wetlands and Tee and Wicker Lakes resulting from the discharge of effluent pursuant to the interim limits for pH, DO, specific conductance, turbidity, and color. If the NSAI analysis shows no significant adverse impact has occurred, the proposed Consent Order contemplates that IP or the Department would establish alternative water quality criteria that would apply permanently in the wetland tract. IP is required by the Consent Order to submit quarterly progress reports of its progress toward compliance with the required corrective actions and deadlines. The Consent Order imposes a "stipulated penalty" of $500 per day for noncompliance with its terms. It also contains a statement that a violation of its terms may subject IP to civil penalties up to $10,000 per day. The Principal Factual Disputes A. The Evidence in General Much of the water quality and biological data presented by Petitioners were limited in terms of the numbers of samples taken, the extent of the area sampled, and the time period covered by the sampling. Much of the expert testimony presented by Petitioners was based on limited data, few field investigations, and the review of some, but not all relevant permit documents.8 On the other hand, the Livingston studies represent perhaps the most complete scientific evaluation ever made of a coastal ecosystem. Even Dr. Lane called the Livingston studies "huge" and "amazing." Therefore, with regard to the factual issues raised by Petitioners that involved scientific subjects investigated in the Livingston studies, Petitioners' data and the expert opinions based on those data were generally of much less weight than the data and conclusions of the Livingston studies. However, the Livingston studies did not address all of the factual issues in dispute. Some of the evidence presented by Petitioners regarding historical water quality conditions in Perdido Bay and Elevenmile Creek was lay testimony. The lay testimony was competent and sufficient to prove the existence of environmental conditions that are detectable to the human senses, such as an offensive smell, a dark color, or a sticky texture. Historical Changes in Perdido Bay Petitioners claim that, before the Cantonment mill began operations in the 1940s, Perdido Bay was a rich and diverse ecosystem and a beautiful place for swimming, fishing, boating, and other recreational activities. Petitioners blame the mill effluent for all the adverse changes they say have occurred in Perdido Bay. Petitioners claim that the water in Perdido Bay was much clearer before the mill was built. James Lane, who has lived on the Bay for 65 years, said he began to notice in the late 1940s that the water was becoming dark and filled with wood fibers. Mr. Lane recalls that there used to be an abundance of fish in the Perdido Bay, including croakers, pinfish, flounder, redfish, minnows, and catfish. Now Mr. Lane sees few of these fish in the Bay and he believes the remaining fish are unfit to eat because they look diseased to him. Mr. Lane said there were extensive areas of sea grasses in the Bay which supported large numbers of shrimp, crabs, and mussels, but these grasses are now gone. The Lane family used to enjoy swimming in Perdido Bay but stopped swimming years ago because the water felt sticky and often had a brown foam or scum on the surface. Mr. Lane and others members of FOPB claim to have gotten infections from swimming in the Bay. Mr. Lane and other witnesses described the odor of Elevenmile Creek near the mill as unpleasant and, at times, offensive. They consider the Creek to be too polluted for swimming. Donald Ray, who has been a Department biologist for 30 years, said he has received many complaints from citizens about the conditions in Perdido Bay. He said the foam that occurs in Perdido Bay is not natural foam, but one that persists and leaves a stain on boats. On the other hand, it is Dr. Livingston's opinion that the ecological problems of Perdido Bay are due primarily to the opening of Perdido Pass around 1900. The opening of the pass allowed Gulf waters to enter Perdido Bay and caused salinity stratification in the Bay, with marine waters on the bottom and fresh water from the Perdido River, Elevenmile Creek, and other tributaries on the top. The stratification occurs regularly in the lower Bay, but only during low flow conditions in most of the upper Bay, Perdido River, and Elevenmile Creek. It restricts DO exchange between the upper and lower water layers and results in low DO levels in the lower layer. Low DO, or "hypoxia," is the primary cause of reduced biological diversity and productivity in Perdido Bay. Dr. Livingston's initial study of the Perdido Bay system (1988-91) included an investigation of historical conditions, using documents and maps, anecdotal statements of area residents, as well as historic water quality and sediment data. Dr. Livingston found general agreement from most sources that: [P]rior to the 1940s, the various rivers and the bay in the Perdido Basin were quite different from what they are today. Eyewitness accounts from 1924 indicate a bay that was clear and "bluish" in color; the bottom could be seen at depths of five feet. According to resident' accounts, seagrasses grew from Garth Point to Witchwood; the grassbeds provided cover for many shrimp that were taken at the time. Flounder were taken with gigs and crabs were taken with hand nets. According to these accounts, the water from the various rivers and creeks in the area was relatively clear, and white sand/gravel bottoms were dominant forms of habitat in the freshwater and estuarine systems. The water was tea- colored but clear. Redfish, trout, blue crabs, shrimp, and mullet were abundant. * * * [T]hrough the early 1900s, the Elevenmile Creek was said to be crystal clear with soft white sand and good fishing. * * * According to various reports, in the early 1950s, the waters of Elevenmile Creek turned black, with concentrations of foam observed floating on the surface. By 1986, more than 28 million gallons of largely untreated effluent was flowing into the Elevenmile Creek- Perdido Bay system each day. Experiments by the Florida Game and Fresh Water Fish Commission had shown that the creek waters were lethal. The Florida Board of Health reported that Elevenmile Creek was "grossly polluted" and that Perdido Bay had been "greatly degraded within the 1.5 mile radius of where Elevenmile Creek dumped into the bay." Nevertheless, Dr. Livingston discounted much of this historical record, especially with regard to the belief that the mill's effluent had adversely affected Perdido Bay, because it was not based on what he considers reliable scientific data. He found "little evidence in the long- term sediment record of a direct response to historical activities of the pulp and paper mill, suggesting that the flushing capacity of Perdido Bay quickly diluted effluents that enter Perdido Bay from Elevenmile Creek." The evidence is persuasive that the salinity stratification in Perdido Bay is a major cause of low DO in the Bay.9 However, the stratification does not explain all of the observed changes in water quality, biological productivity, and recreational values. The stratification does not account for the markedly better conditions in the Bay that existed before the Cantonment paper mill began operations. The Livingston studies confirmed that when nutrient loadings from the mill were high, they caused toxic algae blooms and reduced biological productivity in Perdido Bay. As recently as 2005, there were major toxic blooms of heterosigma in Tee and Wicker Lakes caused by increased nutrient loading from the mill. Other competent evidence showed that the mill's effluent has created nuisance conditions in the past, such as foam and scum, which adversely affected the recreational values of these public waters. Some of the adverse effects attributable to the mill effluent were most acute in the area of the Bay near the Lanes' home on the northeastern shore of the Bay, because the flow from the Perdido River tends to push the flow from Elevenmile Creek toward the northeastern shore. Petitioners were justified in feeling frustrated in having their concerns about the adverse impacts of the mill's effluent discounted for many years, and in having to wait so long for an effective regulatory response. However, with regard to many of their factual disputes, Petitioners' evidence lacked sufficient detail regarding the dates of observations, the locations of observations, and in other respects, to distinguish the relative contribution of the mill effluent from other factors that contributed to the adverse impacts in the Bay, such as salinity stratification, natural nutrient loading from the Perdido River and other tributaries, and anthropogenic sources of pollution other than the paper mill.10 Petitioners generally referred to the mill effluent and its impacts to Perdido Bay as if they have been relatively constant for 65 years. The Livingston studies, however, showed clearly that the mill effluent and its impacts, as well as important factors affecting the impacts, such as drought, have frequently changed. Focusing on the fact that the average daily BOD loading allowed under the proposed permit would be same as under the 1989 TOP (4,500 ppd), Petitioners remarked several times at the final hearing that the proposed permit for the mill was no different than the existing permit. According to Petitioners, if the mill is allowed to operate under the proposed permit, one can predict that the future adverse impacts to Perdido Bay will be the same as the past adverse impacts. However, the 1989 TOP and the proposed permit are very different. Therefore, it cannot be assumed that the impacts would be the same. Petitioners' evidence was generally insufficient to correlate past adverse impacts to Perdido Bay with the likely impacts that would occur under the proposed permit. In contrast, that was the focus of the Livingston studies. Development of the WQBELs Whether Perdido Bay is an Alluvial System and Whether Elevenmile Creek is a Blackwater Stream Alluvial systems are generally characterized by relatively high nutrient inputs from tributaries and associated wetlands that provide for high biological productivity in the receiving bay or estuary. Petitioners disagree with Dr. Livingston's characterization of the Perdido Bay system as an alluvial system. Petitioners presented the testimony of Donald Ray, a Department biologist, who said that the Perdido River is not an alluvial river and the natural nutrient loadings to Perdido Bay are less than would occur in an alluvial system. Although it is curious that two experienced biologists cannot agree on whether Perdido Bay is part of an alluvial system, the dispute is immaterial because it was not shown by Petitioners that any of the four proposed Department authorizations is dependent on the applicability of the term "alluvial." The WQBELs developed by Dr. Livingston, for example, were not dependent on a determination that Perdido Bay meets some definition of an alluvial system, but were based on what the data indicated about actual nutrient loadings into Perdido Bay and the Bay's ecological responses to the loadings. If the dispute is not immaterial, then Dr. Livingston's opinion that Perdido Bay is part of an alluvial system is more persuasive, because he has greater experience and knowledge of the coastal bay systems on the Florida Panhandle than does Mr. Ray. Petitioners also take exception to Dr. Livingston's characterization of Elevenmile Creek as a blackwater creek. Petitioners claim Elevenmile Creek is naturally clear to "slightly tannic" stream. This dispute, however, is also immaterial because the proposed permit calls for the termination of the mill's discharge to Elevenmile Creek, including its contribution of color to the Creek. Petitioners assert that Dr. Livingston's characterizations of Perdido Bay as an alluvial system and Elevenmile Creek as a blackwater creek show he is biased and that his "overall analysis" lacks credibility. Dr. Livingston's opinions on these points do not show bias nor compromise the credibility of his overall analysis of the Perdido Bay system, which is actually the product of many scientists and based on 18 years of data.11 2. Selection of 1988 and 1989 Mill Loadings as a Benchmark for the WQBELs Generally, the Department establishes effluents limits for nutrients based on Chlorophyl A analysis. However, the Livingston studies showed that Chlorophyl A was not significantly associated with plankton blooms in Perdido Bay. Therefore, the Department accepted Dr. Livingston's recommendation to base the WQBELs for nutrients on the nutrient loading from the mill in 1988 and 1989, which the Livingston studies showed were good years for Perdido Bay with respect to its biological health. Phytoplankton are a fundamental component of the food web in Perdido Bay. The number of phytoplankton species is a sensitive indicator of the overall ecological health of the Bay. The Livingston studies showed that the loadings of ammonia and orthophosphate from the mill had a direct effect on the number of phytoplankton species. In the years when the mill discharged high loadings of ammonia and orthophosphate, there were toxic algae blooms and reduced numbers of phytoplankton species. In 1988 and 1989, when the loadings of ammonia and orthophosphate were lower, there were no toxic algae blooms, and there were relatively high numbers of phytoplankton species. Petitioners dispute that 1988 and 1989 are appropriate benchmarks years for developing the WQBELs because Petitioners claim there were high nutrient loadings and algae blooms in those years. Mr. Ray testified that the Department received citizen complaints about algae blooms in those years. Dr. Livingston's analysis was more persuasive, however, because it distinguished types of algae blooms according to their harmful effect on the food web and was based on considerably more water quality and biological data. Petitioners also presented water quality data collected from 1971 to 1994 by the Bream Fishermen Association at one sampling station in the northeastern part of Perdido Bay, which indicate that in 1988 and 1989, the concentrations of nutrients were sometimes high. The proposed nutrient WQBELs were derived from data about the actual response of the Perdido Bay ecosystem over time to various inputs. The sampling data from the Bream Fishermen Association were not correlated to ecosystem response and, therefore, are insufficient to refute Dr. Livingston's evidence that 1988 and 1989 were years of relatively high diversity and productivity in Perdido Bay. Furthermore, nutrients loadings would be reduced under the proposed permit. 3. DO and Sediment Oxygen Demand The parties agreed that sediment oxygen demand (SOD) is a major reason for the low DO in Perdido Bay in areas where there is salinity stratification. SOD is caused by the bacterial degradation of particulate organic matter that settles to the bottom. SOD decreases DO in the lower water layer, but also can cause a reduction of DO in the surface layer. Low DO has substantially reduced the biological productivity of Perdido Bay. Thomas Gallagher, an environmental engineer and water quality modeling expert, showed that even without the mill discharge, DO in the bottom waters of Perdido Bay would fall below the applicable Class III water quality standard of 5 mg/l. Low DO conditions are now a "natural" characteristic of the Bay, usually occurring during summer and early fall when freshwater flows are low and temperatures are high. At these times, surface water DO levels are usually above the state standard, but DO in the bottom waters usually range between 1.0 and 2.0 mg/l. Petitioners claim that the dominant source of the sediment in Perdido Bay is the carbon and nutrient loading in the mill's effluent that flows into the Bay from Elevenmile Creek. Mr. Ray, who sampled sediments in Perdido Bay over several years for the Department, believes that the mill effluent is the main source of the sediment and, consequently, the sediment oxygen demand. Dr. Livingston did extensive sediment analyses in Perdido Bay. He compared the data with sediment data from other bays on the Florida Panhandle. It is Dr. Livingston's opinion that the mill effluent contributes little to the sediments or SOD in Perdidio Bay. His initial three-year study concluded: [T]he hypoxic conditions of Elevenmile Creek are due, in part, to mill discharges. However, low dissolved oxygen conditions at depth in Perdido Bay are not due to the release of mill effluents from Elevenmile Creek, and can actually be attributed to a long history of human activities that include alteration of the hydrological interactions at the gulfward end of the estuary. The entry of saline water from the Gulf and the resulting stratification have been coupled with various forms of human development that release carbon, nitrogen, and phosphorus compounds into the estuary. The landward movement of high-salinity water from the Gulf of Mexico, laden with various types of oxygen-consuming compounds from various sources, together with oxygen demand from sediments to the lower water column that is isolated from reaeration due to salinity stratification, are thus responsible for a large portion of the observed hypoxic conditions at depth in Perdido Bay. [The paper mill] is responsible for a relatively small amount of these oxygen-consuming effects. In East Bay, which is a part of Escambia Bay and a relatively pristine system, there was SOD that caused DO to fall below standards in the lower water layer. Dr. Livingston also found severe oxygen deprivation at times in the lower waters of the Styx River and Perdido River, which do not receive mill effluent. Dr. Livingston believes the low DO that occasionally occurs in these rivers is due to agricultural runoff, urban discharges, and natural organic loading from adjacent wetlands. There was extensive evidence, some of which was presented by Petitioners, showing that the mill loadings of carbon and nutrients are less than the loadings from the Perdido River. Mr. Gallagher concluded that the sediment in the Bay is mostly "terrestrial carbon," and not from the mill's effluent. His water quality modeling work determined that the mill's effluent reduced bottom layer DO by about 0.1 mg/l. Dr. Lane believes that the organic solids in the mill's effluent are accumulating in Perdido Bay sediments, but Mr. Gallagher pointed out that degrading solids cannot accumulate because they are degrading. In addition, Mr. Gallagher said that logic dictates that solids that have not settled out after spending several days in the settling basins of IP's WWTP are not going to readily settle in the more turbulent environment of Perdido Bay. Some of the solids are oxidizing or being transported into the Gulf. Mr. Gallagher determined that in summer and late fall, 60 percent of the water in the bottom layer in the upper Bay is from the Gulf and almost all the rest is from the Perdido River. He believes only 0.1 to 2.0 percent of the water in the bottom layer is mill effluent. Dr. Livingston responded to the BOD and carbon issues that "these Petitioners raised over the years" by investigating them as part of the Livingston studies. He found no relationship between loading and DO. Dr. Livingston concluded that the mill was not having much effect on SOD. Dr. Livingston and Mr. Gallagher referred to a carbon isotope study of the sediment in Perdido Bay by Coffin and Cifuentes. The isotope study was a part of the initial three-year Livingston study entitled "Ecological Study of the Perdido Bay Drainage System." The study identified a unique carbon isotope in the mill's effluent and looked for traces of the isotope in the sediments of Perdido Bay. Very little of the carbon isotope was found in the sediments, suggesting that the mill's effluent was not contributing much to the sediments. The carbon isotope study was not offered into evidence. Petitioners assert that the isotope study is hearsay and cannot be used to support a finding of fact.12 However, Dr. Livingston's opinion about the sources of the sediment was not based solely on the isotope study. The isotope study was consistent with his other studies and with Mr. Gallagher's water quality modeling analysis. Therefore, the conclusions of the isotope study serve to support and explain Dr. Livingston's expert opinion that the mill effluent is not the primary source of the sediment and low DO in Perdido Bay. Dr. Livingston summarized his opinion regarding DO and SOD as follows: "all of these lines of evidence, from all the bays that I have worked in and from them scientific literature and from our own studies, every line of evidence simply eliminated the pulp mill as the primary source of the low dissolved oxygen in the bay." 4. Long-term BOD BOD is a measurement of the oxygen demand exerted by the oxidation of carbon, nitrogen, and the respiration of algae. A five-day BOD analysis is the standard test used in the regulatory process. The use of the standard five-day BOD measurement is not restricted to organic material that is expected to completely degrade in five days. Five days is simply the time period selected to standardize the measurement. For example, the five-day BOD analysis is used in the regulation of domestic wastewater even though most of the organic material in domestic wastewater takes about 60 days to degrade and would exert an oxygen demand throughout the 60 days. It was undisputed that paper mill effluent will continue to consume DO after five days. One estimate given was that it would take 100 days to completely degrade. Some of the naturally occurring organic material flowing into Perdido Bay from the Perdido River and Gulf of Mexico would also include material with long-term BOD. Petitioners claim that long-term BOD analysis is essential to determine the true impacts of the mill's effluent on Perdido Bay, but they failed to show that the Livingston studies did not consider long-term BOD.13 The evidence shows that Dr. Livingston's studies accounted for DO demand in all its forms and for any duration. Dr. Livingston's studies focused on the response of Perdido Bay's food web to nutrients and various other inputs as they changed over time. If long-term BOD was having an adverse effect on the food web, the Livingston studies were designed to detect that effect. Dr. Livingston's opinion is that long-term BOD is not a significant problem for Perdido Bay because the Bay is part of a dynamic system and the sediments are regularly flushed out or otherwise recycled in a matter of a few months, not years.14 5. Carbon Dr. Lane, who is a marine biologist, believes a major reason for low DO in Perdido Bay is "organic carbonaceous BOD." However, Dr. Lane presented no evidence other than statements of the theoretical process by which carbon from the mill would cause low DO in the Bay. She presented no scientific data from Perdido Bay to prove her theory.14 Dr. Livingston said that 16 years of studies in the Bay have found DO and carbon to be "totally uncorrelated." Other Water Quality Issues 1. Toxicity Petitioners allege that the mill effluent has had occasional problems passing toxicity tests. Un-ionized ammonia is the likely cause, and the reduction of un-ionized ammonia in the proposed permit and the distribution of the effluent over the wetland tract should prevent toxicity problems from recurring. Dr. Livingston examined tissue samples from various fish and invertebrates and found low levels of bioconcentrating chlorine compounds in Perdido Bay that he believes were "probably associated with discharges from the Pensacola mill." Although they are toxic substances, Dr. Livingston found no diseased organisms and no evidence of food web magnification of these potentially bioaccumulable compounds. Mr. Ray testified that Perdido Bay was the worst of all the bays he has studied in terms of high sediment metals. Most of his sediment sampling was done in 1977 through 1983, years before the Livingston studies got started. His knowledge about subsequent years was based on only two samples, one in 1988 and another in 2005.16 Dr. Lane did an analysis of 12 sediment samples in Perdido Bay, Perdido River, and Elevenmile Creek in 1999 and concluded that "Eleven Mile Creek appears to be the source of all elevated levels [of metals] except silver." The Livingston studies included toxics analysis of Perdido Bay sediments, including metals, dioxin, and other chlorinated organic compounds. Dr. Livingston testified that metal concentrations in the sediments of Elevenmile Creek did not differ from the metal concentrations in the Perdido River and other streams in the area. The concentrations were not significantly different from concentrations in other bays he has studied that do not have a paper mill discharge. 2. Mutagenic Compounds Petitioners claim that there are chemicals in paper mill effluent that are mutagenic and are causing changes in the sex of fish. They introduced an exhibit from the Department's exhibit list (DEP Exhibit 38) that discussed investigations of effluent from the Cantonment mill and other Florida paper mills which found abnormally high testosterone levels and related mutations in female Gambusia fish. The most recent such study16 implicates androgens produced by the microbial degradation of natural chemicals in the trees pulped at the mills, especially softwood trees (pines), as the cause. Petitioners believe IP's proposal to begin using 100 percent pine at the Cantonment mill could cause mutations in fish and other animals exposed to the mill's effluent. Although IP and the Department are aware of the sex change studies, there was no evidence presented that the subject was investigated or addressed by them in the permitting process. DEP Exhibit 38 is hearsay and no non-hearsay evidence was presented on the issue of mutagenic compounds in the mill's effluent. Therefore, no finding of fact in this Recommended Order can be based on the data and analysis in DEP Exhibit 38.18 Furthermore, Petitioners did not raise the issue of mutagenic compounds in the mill's effluent discharge in their petitions for hearing or in the pre-hearing stipulation.19 Antidegradation Policy Petitioners claimed the proposed permit violated the antidegradation policy for surface waters established in Florida Administrative Code Rule 62-302.300(1). An element of that policy is to require, for any discharge that degrades water quality, a demonstration that the degradation is necessary or desirable under circumstances which are clearly in the public interest. Florida Administrative Code Rule 62-4.242(1)(a) contains a list of factors to be considered and balanced in applying the antidegradation policy. These include consideration of whether the proposed project would be beneficial to public health, safety, or welfare and whether the discharge would adversely affect the, conservation of fish and wildlife, and recreational values. The greater weight of the evidence supports the position of IP and the Department that the proposed discharge to the wetland tract would be an improvement over the existing circumstances. However, as discussed below, there was an insufficient demonstration that the discharge would not cause significant adverse impact to the biological community within the wetland tract, and there was an insufficient demonstration that the Perdido River OFW would not be significantly degraded. Without sufficient demonstrations on these points, it is impossible to find that the degradation has been minimized. Petitioners did not prove that the proposed project was not in the public interest, but the burden was on IP to show the opposite. Because IP did not make a sufficient demonstration regarding potential adverse impacts on the biological community within the wetland tract and on the Perdido River OFW, IP failed to prove compliance with Florida's antidegradation policy. Perdido River OFW Florida Administrative Code Rule 62-302.300(2) contains the standards applicable to OFWs and prohibits a discharge that significantly degrades an OFW unless the proposed discharge is clearly in the public interest or the existing ambient water quality of the OFW would not be lowered.20 Petitioners contend that the water quality of the Perdido River would be significantly degraded by the mill's effluent under the authorizations. Mr. Gallagher's modeling analysis predicted improved water quality in the Perdido River for DO and several other criteria over the conditions that existed in 1979, the year the river was designated as an OFW. However, the modeling also predicted that the discharge would reduce the DO in the river (as it existed in 1979) by .01 mg/l under unusual conditions of effluent loading at the daily limit (based on a monthly average) during a drought. Mr. Gallagher's modeling indicated that a very small (less than 0.1 mg/l) reduction in DO in the surface water of the lower Perdido River would occur as a result of the proposed project. He considered that to be an "insignificant" effect and it was within the model's range of error. However, IP made the wrong comparisons in its modeling analysis to determine compliance with the OFW rule, Florida Administrative Code Rule 62-4.242(2). Mr. Gallagher used the model to compare the DO levels in the Perdido River that would result from the mill's discharge of BOD at the proposed permit limit of 4,500 ppd with the predicted DO levels that would have existed in 1979 if St. Regis was discharging 5,100 ppd of BOD. IP should have compared the DO levels resulting from the proposed permit with the actual DO levels in 1979, or at least the DO levels that the model would have simulated using actual BOD loadings by St. Regis in 1979. The DO levels that would have existed in 1979 if St. Regis had discharged 5,100 ppd of BOD are irrelevant. No DO data from 1979 were presented at the hearing and no explanation was given for why DO data for 1979 were not used in the analysis. No evidence was presented that St. Regis discharged 5,100 ppd of BOD as a monthly average in 1979.21 It might have discharged substantially less.22 Petitioners did not prove that the proposed permit would significantly degrade the Perdido River, but the burden was on IP to show the opposite. Because the wrong anti-degradation comparison was made, IP failed to provide reasonable assurance that the Perdido River would not be significantly degraded by the proposed discharge. The Experimental Use of Wetlands Exemption Petitioners claim that IP did not demonstrate compliance with all the criteria for the experimental use of wetlands exemption. There are seven criteria set forth in Florida Administrative Code Rule 62-660.300(1)(a) that must be met to qualify for the exemption. IP is seeking a waiver from two of the criteria and those will be discussed later in this Recommended Order. Impact on the Biological Community a. In General Florida Administrative Code Rule 62- 660.300(1)(a)1 requires a demonstration that "the wetlands ecosystem may reasonably be expected to assimilate the waste discharge without significant adverse impact on the biological community within the receiving waters." Dr. Nutter used a "STELLA" wetland model to predict the effects of discharging mill effluent to the wetland tract. The STELLA model was programmed to evaluate the "water budget" for the wetland tract, as well as simulate the fate of nitrogen, phosphorus, and total dissolved solids (TDS). Petitioners contend that the STELLA model is too limited to adequately assess potential adverse impacts on the biological community, but the model was not the sole basis upon which Dr. Nutter formed his opinions. He also relied on relevant scientific literature, his general knowledge of wetland processes, and on his 40 years of experience in land treatment of wastewater. The STELLA model predicted that there would be about a 10 percent reduction in nitrogen and phosphorus. Dr. Nutter testified that that figure was a conservative prediction and the scientific literature suggests there could be a greater reduction. Wetlands are effective in processing TSS and BOD. Dr. Nutter ran the model with the proposed permit limits and the model predicted 90 to 95 percent BOD removal before the effluent reached berm 4. Dr. Nutter expected pH levels to be in the range of background levels in the wetlands, which vary between 6.5 and 8.0.23 Dr. Nutter predicts that in high flow conditions, there will be more DO in the water flowing from the wetlands into Tee and Wicker Lakes. During low flow conditions, he predicts no change in the DO level. Background DO levels in the wetland tract now range between and 5.0 mg/l. Mr. Gallagher's water quality modeling for Perdido Bay assumed that the water flowing from the wetland tract would have a DO level of 2.0 mg/l, which Dr. Nutter believes this is a conservative estimate, meaning it could be higher. Specific Conductance A fundamental premise of the relocated discharge is that it solves the mill's decades-long failure to meet the stricter water quality standards applicable in the fresh waters of Elevenmile Creek because the new receiving waters would be marine waters. However, the majority (about 70 percent) of the wetland tract is a freshwater wetland. The tidal influence does not reach above berm 4 in the wetland tract. Before the mill's effluent reaches marine waters, it would be distributed over the entire freshwater portion of the wetland tract. Dr. Livingston explained that, but for the mill's discharge, minnows and other small "primary" freshwater fish species would be found in Elevenmile Creek. The primary fish cannot tolerate the mill's discharge because the high levels of sodium chloride and sulfide (specific conductance) cause osmoregulatory problems, disrupting their blood metabolism and ion regulation. High conductivity also eliminates sensitive microinvertebrates. Because Tee and Wicker Lakes are in the tidally influenced, southern portion of the wetland tract, the fish and other organisms in the lakes are polyhaline, which means they are adapted to rapid changes in salinity, temperature and other habitat features. That is not true of the organisms in the freshwater area of the wetland tract. A constructed wetlands pilot project was built in 1990 at the Cantonment mill. The initial operational phase of the pilot project was July 1991 through June 1993. A second phase was conducted for just three months, from September 1997 through December 1997. The pilot project generated some information about "benthic macroinvertebrate diversity," which was "low to moderate." In addition, there were "observations" made of "three amphibian species, three reptile species, approximately 31 bird species, three fish species that were introduced, and two mammal species." The information generated by the pilot project is ambiguous with respect to the effect of the effluent on fish and other organisms attributable to the specific conductance of the effluent, indicating both successes and failures in terms of survival rates. Moreover, the data presented from the pilot wetland project lacks sufficient detail, both with respect to the specific conductivity of the effluent applied to the wetlands and with respect to the response of salt-intolerant organisms to the specific conductivity of the effluent, to correlate the findings of the pilot project with the proposed discharge to the wetland tract. Freshwater wetlands do not have naturally high levels of specific conductance. The specific conductance in the wetland tract is 100 micromhos/cm or less.24 The proposed interim limit for specific conductance for the discharge into the wetland tract is "2,500 micromhos/cm or 50% above background, whichever is greater." Using total dissolved solids (TDS) as a surrogate for analyzing the effects on specific conductance, Dr. Nutter predicted that average TDS effluent concentrations would only be reduced by 1.0 percent.25 His prediction is consistent with the literature on the use of wetlands for wastewater treatment, which indicates wetlands are not effective in reducing TDS and specific conductance. The wetland tract would not assimilate TDS in mill's effluent. The potential exists, therefore, for the discharge to cause specific conductance in the freshwater area of the wetland tract to reach levels that are too high for fish and other organisms which can only live, thrive, and reproduce in waters of lower specific conductance. It was the opinion of Barry Sulkin, an environmental scientist, that the "freshwater community" would be adversely impacted by the salts in the effluent. Although the freshwater area of the wetland tract is not dominated by open water ponds, creeks, and streams,26 the evidence shows that it contains sloughs, creeks, and other surface water flow. No evidence was presented about the biological community associated with the sloughs, creeks, and other waters in the wetland tract, other than general statements about the existing plants and the trees that are being planted. Petitioners did not prove that granting the exemption would cause significant adverse impact to the biological community in the freshwater area of the wetland tract, but it was IP's burden to affirmatively demonstrate the opposite. Because IP did not adequately address the impact of increased specific conductance levels on fish and other organisms in the freshwater area of the wetland tract, IP did not provide reasonable assurance that the proposed discharge would be assimilated so as not to cause significant adverse impact on the biological community within the wetland tract. Tee and Wicker Lakes When the Department issued the proposed exemption order, it did not have sufficient data and analyses regarding Tee and Wicker Lakes to determine with reasonable confidence that these waterbodies would not be adversely impacted by the proposed discharge. A transparency study of the lakes, which IP introduced as an exhibit at the final hearing, had not previously been reviewed by Department staff. Dr. Livingston is still developing data and analyses for the lakes to use in the NSAI analysis. The proposed NSAI monitoring plan states that one of its objectives is to determine the "ecological state" of the tidal ponds, including whether the ponds "could comprise an important nursery area for estuarine populations." In addition, the monitoring is to determine "the normal distributions of salinity, temperature, color, and dissolved oxygen" in the tidal ponds. These are data that must be known before a determination is possible that the discharge would not have a significant adverse impact on the biological community associated with the lakes. Petitioners did not prove that granting the exemption would cause significant adverse impact to the biological community of Tee and Wicker Lakes, but it was IP's burden to affirmatively demonstrate the opposite. Because insufficient data exists regarding baseline conditions in Tee and Wicker Lakes, IP did not provide reasonable assurance that the proposed discharge would not cause significant adverse impact on the biological community within the wetland tract. 2. Public Interest and Public Health Florida Administrative Code Rule 62- 660.300(1)(a)2. requires the applicant to demonstrate that "granting the exemption is in the public interest and will not adversely affect public health or the cost of public health or other related programs." Public Interest Petitioners made much of a statement by Mr. Evans that the public interest consideration in this permit review was “IP’s interest”. Petitioners claimed that this statement was an admission by the Department that it gave no consideration to the public interest. However, in context, Mr. Evan's statement was not such an admission. Moreover, Florida Administrative Code Rule 62-302.300(6) expressly provides that the public interest is not confined to activities conducted solely for public benefits, but can also include private activities conducted for private purposes. The proposed exemption order does not directly address the public interest criterion, but it notes that "existing impacted wetlands will be restored." In IP's application for the exemption, it states that the exemption would "contribute to our knowledge of wetlands in general and to the refinement of performance guidelines for the application of pulp mill wastewater to wetlands." Petitioners dispute that the wetland tract is being restored. The evidence shows that some restoration would be accomplished. The natural features and hydrology of the tract have been substantially altered by agriculture, silviculture, clearing for pasture, ditching, and draining. The volume of flow in the discharge would offset the artificial drainage that occurred. A mixture of hardwood tree species would be planted, which would restore more of the diversity found in a natural forested wetland. However, an aspect of the project that could substantially detract from the goal of restoration is the transformation of the freshwater wetlands to an unnatural salty condition. Dr. Nutter said that the salt content of the mill's effluent was equivalent to Gatorade, but for many freshwater organisms, that is too salty. Another public benefit of the exemption that was discussed at the final hearing is that it would allow IP to relocate its discharge from Elevenmile Creek and thus end its adverse impacts to the Creek. That public benefit is not given much weight because IP has not shown that its adverse impacts to Elevenmile Creek cannot be eliminated or substantially reduced by decreasing its production of paper products. The evidence shows only that IP has attempted to solve its pollution problems through environmental engineering.27 A sufficient public interest showing for the purpose of obtaining the experimental use of wetlands exemption should not be a rigorous challenge if all the other exemption criteria are met, because that means the proposed wetland discharge was shown to have no harmful consequences. The public interest showing in this proceeding was insufficient, however, because the other exemption criteria were not met and there is a reasonable potential for harmful consequences. Public Health Petitioners raised the issue of the presence of Klebsiella bacteria, which can be a public health problem when they occur at high levels. The more detection of Klebsiella, however, does not constitute a public health concern. Petitioners did not show that Klebsiella bacteria exist in the mill's effluent at levels that exceed applicable water quality standards. Petitioners also did not present competent evidence about the likely fate of Klebsiella bacteria in the proposed effluent distribution system. Dr. Lane's statement that Klebsiella bacteria might be a problem is not sufficient to rebut IP's prima facie showing that the proposed permit will not cause or contribute to a violation of water quality standards applicable to pathogenic bacteria. Petitioners also point to past incidents of high total coliform concentrations in Elevenmile Creek in support of their contention that the proposed exemption poses a risk to public health. However, these past incidents in Elevenmile Creek are not sufficient to prove that fecal coliform in the effluent discharged to the wetland tract will endanger the public health. IP proposes to restrict access to the wetland distribution system. Furthermore, the fate of bacteria in the wetlands is much different than in the Creek. The more persuasive evidence is that the wetland tract would destroy the bacteria by solar radiation and other mechanisms so that bacteria concentrations in waters accessible by the public would not be at levels which pose a threat to public health. Protection of Potable Water Supplies and Human Health Florida Administrative Code Rule 62- 660.300(1)(a)5. requires the applicant for the exemption to demonstrate that "the presently specified criteria are unnecessary" to protect potable water supplies and human health, which presupposes that the applicant has applied for an exemption from water quality criteria applicable to human health. IP has not requested such an exemption and, therefore, this particular criterion appears to be inapplicable. Even if it were applicable, the evidence does not show that the effluent would cause a problem for potable water supplies or human health. 4. Contiguous Waters Florida Administrative Code Rule 62- 660.300(1)(a)6. requires a showing that "the exemption will not interfere with the designated uses of contiguous waters." Contiguous waters, for the purpose of this criterion, would be Elevenmile Creek, Perdido Bay, and the Perdido River. Petitioners argue that Tee and Wicker Lakes should be considered contiguous waters for the purpose of this criterion of the exemption rule. However, Tee and Wicker Lakes are within the exempted wetland tract so they are not contiguous waters. Petitioners contend that IP failed to account for the buildup of detritus in the wetlands and its eventual export to Perdido Bay. Their contention is based primarily on the opinion of Dr. Kevin White, a civil engineer, that treatment wetlands must be scraped or burned to remove plant buildup. However, Dr. Nutter explained that periodic removal of plant material is needed for the relatively small "constructed wetland" treatment systems that Dr. White is familiar with, but should not be needed in the 1,464-acre wetland tract. Nevertheless, because IP did not provide reasonable assurances that the proposed permit and related authorizations would not significantly degrade the Perdido River OFW, IP failed to meet this particular exemption criterion regarding interference with contiguous waters. 5. Scientifically Valid Experimental Controls Florida Administrative Code Rule 62- 660.300(1)(a)6. requires a showing that "scientifically valid environmental controls are provided . . . to monitor the long-term effects and recycling efficiency." Petitioners' argument about this particular criterion was largely misplaced. The term "environmental controls" modifies the term "monitor" and connotes only that the experiment would be monitored in a manner that will generate reliable information about long-term effects and performance. For monitoring purposes, IP's proposed NSAI protocol is an innovative and comprehensive plan that complies with this exemption criterion. Petitioners' objections to the lack of sufficient information about Tee and Wicker Lakes is more appropriately an attack on the sufficiency of IP's showing that its discharge would not cause a significant adverse impact on the biological community within the wetland tract. That issue was discussed above. 6. Duration of the Exemption Petitioners argue that the exemption can not exceed five years in duration, but the time schedules established by the proposed Consent Order and proposed permit would allow the exemption to be in effect for nine years. The Department's exemption order states that the five years does not begin to run until IP begins to discharge effluent at D-003 into the wetland tract. The possibility that IP might seek to renew the exemption after five years does not make the exemption something other than a five-year exemption. The Department's action on the request to renew the exemption would be subject to public review and challenge by persons whose substantial interests are affected. The Waiver The proposed waiver order would excuse IP from compliance with the criteria in Florida Administrative Code Rule 62-660.300(1)(a)3. and 4., which require that public access and recreation be restricted in the area covered by the exemption for experimental use of wetlands. Without the waiver, the public would have to be excluded from Tee and Wicker Lakes. Section 120.542, Florida Statutes, requires a showing by the person seeking the waiver that the purpose of the underlying statute will be achieved by other means and the application of a rule would create a substantial hardship or would violate principles of fairness. Petitioners contend that IP failed to demonstrate substantial hardship. However, Petitioners do not want public access to Tee and Wicker Lakes restricted. The sole reason for their objection to the proposed waiver is apparently to thwart the issuance of the exemption. Section 120.542, Florida Statutes, defines "substantial hardship" as a demonstrated economic, technological, legal, or other type of hardship to the person requesting the waiver. In the proposed waiver order, the Department identifies IP's hardship as the possibility that denial of the waiver could result in denial of IP's NPDES permit and closure of the mill. The proposed waiver order then describes the number of jobs and other economic benefits of the mill that would be lost if the mill were closed. As discussed in the Conclusions of Law below, the Department's interpretation of Section 120.542, Florida Statutes, to accept a demonstration of hardship that is associated with denial of the waiver is mistaken. The statute requires that the hardship arise from the application of the rule. In this case, IP must demonstrate that it would suffer substantial hardship if it were required to restrict public access and recreation on Tee and Wicker Lakes. Petitioners claimed that IP has no authority to restrict the public from gaining access to Tee and Wicker Lakes because those are public waterbodies which the public has a right to enter and use. A substantial legal hardship for IP in complying with the exemption rule, therefore, is that compliance is impossible. The Consent Order 1. Compliance Schedule Subsections 403.088(2)(d) and (e), Florida Statutes, provide that no permit shall be issued unless a reasonable schedule for constructing, installing, or placing into operation of an approved pollution abatement facility or alternative waste disposal system is in place. Petitioners claim the time schedules for compliance are not reasonable. Petitioners presented no competent evidence, however, that the WWTP upgrades, pipeline construction, and other activities required by the proposed permit can be accomplished in a shorter period of time. One recurring theme in the Petitioners' case was that the adverse impacts associated with the continued discharge to Elevenmile Creek should not be allowed to continue, even for an interim period associated with construction of the WWTP upgrades and effluent pipeline. However, Petitioners also advocated the relocation of the discharge to the Escambia River, or to a "constructed wetlands." Both of these alternatives would have required a transition period during which the discharge to Elevenmile Creek would likely have continued. Furthermore, the Consent Order imposes interim limits on the discharge to Elevenmile Creek that would apply immediately upon issuance of the proposed permit. Although altered by the mill's effluent discharge, Elevenmile Creek is now a relatively stable biological system. The proposed permit would effectuate some improvement in the creek and Perdido Bay even during the construction phase. 2. Contingency Plan The proposed Consent Order includes a contingency plan in the event that the NSAI monitoring analysis shows adverse impacts to the biological community within the wetland tract. The plan provides for alternative responses including relocating all or part of the wetland discharge to Elevenmile Creek. Petitioners object to the plan, primarily because they contend it is vague. The provisions in the contingency plan for relocating all or part of the discharge from the wetland tract to Elevenmile Creek, appear to reflect a presumption that the negatives associated with continued discharge to the wetlands would outweigh the negatives associated with returning the discharge to Elevenmile Creek. However, it is not difficult to imagine scenarios where the harm to the biological community of the wetland tract is small in relationship to the harm to the biological community that might have reestablished itself in Elevenmile Creek. Because the selection of an alternative under the contingency plan requires the consideration of data and analyses associated with future events, it is impossible to know at this time whether future action taken by the Department and IP pursuant to the contingency plan would be reasonable. If the contingency plan is intended by the Department and IP to authorize future action when circumstances described in the plan are present, then the plan is too vague. On the other hand, there is adequate detail in the plan if the purpose of the plan is merely to establish a framework for future decision-making that would be subject to permit modification, public review and challenge. Clarification is needed. 2. Penalties Petitioners complained that the stipulated of $500 per day for violations of the proposed Consent Order is too small to provide a deterrent to a company of the size of IP. Petitioners are correct, but did not present evidence to show what size penalty would be appropriate.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Department of Environmental Protection enter a final order: Denying proposed revised NPDES Permit Number FL0002526- 001/001-IW1S; Disapproving revised Consent Order Number 04-1202; Denying IP's petition for authorization for the experimental use of wetlands; and Denying IP's petition for waiver. DONE AND ENTERED this 11th day of May, 2007, in Tallahassee, Leon County, Florida. S BRAM D. E. CANTER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 11th day of May, 2007.
Findings Of Fact On June 27, 1979, Petitioner applied to the St. Johns River District Office of Respondent for a permit to conduct dredge and fill activities on his property on Johnson Lake near DeLeon Springs, Volusia County, Florida. On July 10, 1979, within thirty days of the filing of the permit application, Respondent requested additional information to complete the permit application, which information was received by Respondent on July 20, 1979. In his permit application, Petitioner seeks to dredge approximately 833 cubic yards of fill material from the bottom of Johnson Lake and deposit that material landward on his property in order to provide waterfront access. Johnson Lake is a small sinkhole lake, with a surface area of approximately 17 acres. The lake consists of two lobes connected by a marshy area traversable by boat. The north lobe of the lake, on which Petitioner's property is located, has a surface area of approximately 7 acres and an average depth of more than two feet throughout the year. The maximum depth of the north lobe of Johnson Lake exceeds thirty feet. Property abutting the shoreline of the north lobe is owned by more than one person. The area which Petitioner proposes to dredge is a heavily vegetated submerged point of land extending from Petitioner's uplands into the waters of the lake. Petitioner proposes to increase the slope of his lake front by relocating materials from the lake bottom landward toward his property, thereby increasing water depth in the lake adjacent to his property by approximately one foot. Petitioner's permit application contains no engineering or other detail demonstrating the manner by which turbidity associated with the project will be controlled either during or after the proposed dredge and fill activities are conducted. In addition, the application contains no data concerning the potential impact of the project on existing water quality in Johnson Lake. However, after receipt of the permit application, Respondent caused a field assessment of the project to be con- ducted. This field assessment revealed that the project site is dominated by a plant community consisting primarily of maidencane, bullrushes and rushes. Each of these species are found in the "submerged lands" vegetative index for fresh waters contained in Rule 17- 4.02(17), Florida Administrative Code. Aquatic vegetation such as that found on Petitioner's property and in the adjoining waters of Johnson Lake aids in both the assimilation of nutrients and filtering of deleterious substances from the waters of the lake and from upland runoff. These types of vegetation in Johnson Lake also provide a habitat for wildlife. Among the fish species present in Johnson Lake are darters, whose presence is indicative of good water quality. Because darters are very oxygen sensitive, it is likely that dissolved oxygen levels in Johnson Lake are in excess of five milligrams per liter. These darters were collected only in marsh areas of the lake, and not in front of areas where the shoreline of Johnson Lake has been previously disturbed by dredging. The existence of good water quality in the lake is due at least in part to the cleansing function of this marsh vegetation which would he removed if the subject permit were granted. Respondent has previously issued permits for dredge and fill activities to other property owners on the north lobe of Johnson Lake. In addition, several other instances of dredging by property owners have occurred on Johnson Lake, at least one of which resulted in Respondent's instituting an enforcement action to cause the affected area to be restored. Approximately 30 percent of the shoreline of the north lobe of Johnson Lake had been disturbed in some fashion at the time of final hearing in this cause. If Petitioner's application is granted, the percentage of shoreline disturbed would increase to approximately 50 percent. Destruction of as much as 20 percent of the littoral zone of a water body may be expected to result in measurable adverse effects on water quality. This adverse effect has been linked to destruction of the nutrient removal capacity of aquatic vegetation. Removal of aquatic vegetation can also result in setting off an algal bloom cycle in the affected water body because of increased nutrient loadings. This algal bloom cycle could, in turn, result in lowering the dissolved oxygen content of the lake, thereby adversely affecting both plant and animal communities. Petitioner has pointed out to the Hearing Officer the earlier case of McPhail v. State of Florida, Department of Environmental Regulation, DOAH Case No. 79-2174, in which a Hearing Officer from the Division of Administrative Hearings recommended the issuance of a dredge and fill permit to a neighbor of Petitioner on the north lobe of Johnson Lake. That recommendation was later adopted by Respondent by issuance of a final order. Petitioner suggests that his application is essentially similar to that of the Petitioner in McPhail, and should, therefore, be granted. However, there is no evidence of record in this proceeding, as there apparently was in McPhaiI, that establishes that no permanent adverse effects will result from the conduct of dredge and fill activities as presently proposed in Petitioner's permit application. In fact, evidence of record in this proceeding clearly establishes that removal of the quantity of aquatic vegetation in the manner proposed by Petitioner could reasonably be expected to have a measurable adverse impact on water quality in Johnson Lake. Further, it is clear that the proposed dredging activity could reasonably be expected to result in short-term turbidity of the water in Johnson Lake, and petitioner in his application has neither attempted to assess the potential impact of turbidity, nor has he proposed any safeguards to limit the effect of that turbidity. The evidence of record in this proceeding clearly establishes that the dredge and fill activity, if conducted as presently proposed, could reasonably be expected to result in lowering the dissolved oxygen content of the water in Johnson Lake, a potential overloading of nutrients in that water body, and short-term and long-term increases in turbidity. It is difficult to address the question of the extent of the potential impact of the proposed activity because nothing submitted by Petitioner either in his permit application or at final hearing in this cause directly addresses this issue in a competent fashion. It should be noted here that the record herein indicates that Petitioner might obtain the desired waterfront access which he seeks by redesigning his project to reduce its size, or, alternatively, by incorporating in his proposal a dock-type structure which would not require such extensive alterations in the littoral zone of Johnson Take. Both Petitioner and Respondent have submitted proposed findings of fact for consideration by the Hearing Officer in this proceeding. To the extent that those proposed findings of fact have not been adopted in this Recommended Order, they have been rejected as either not having been supported by the evidence, or as being irrelevant to the issues in this proceeding.
The Issue In a Notice of Proposed Rulemaking published on September 5, 2003, the Department of Environmental Protection ("DEP" or the "Department") proposed amendments (the "Proposed Rule") to an existing rule, Florida Administrative Code Rule 62- 304.700. The Proposed Rule establishes a Total Maximum Daily Load ("TMDL") for Total Phosphorus ("TP") for a number of streams (referred to in this proceeding as the Nine Northern Tributaries) in the Lake Okeechobee Basin and addresses other related matters. The issue in this proceeding is whether the Proposed Rule is an invalid exercise of delegated legislative authority.
Findings Of Fact Lake Okeechobee Of the freshwater bodies located wholly within the forty-eight contiguous states in the continental United States, Lake Okeechobee (the "Lake") is the second largest. Given its size, it is not surprising that the Lake is a water source of great import to its region. It provides drinking water for lakeside cities and towns in South Florida and is a potential backup water supply for the urban communities of Florida's southeast coast. The Lake supplies irrigation water for the Everglades Agricultural Area ("EAA") and in times of drought, it serves as a critical supplement to the rain upon which the Everglades, an ombrotrophic system, is dependent. Home to one of the nation's prized bass and speckled perch fisheries, the Lake is also an "economically important commercial fishery." Petitioners' Ex. 12, p. 9. Most significantly to this proceeding (one involving the application of Florida's water resources and environmental control laws), Lake Okeechobee is a key component of Central and South Florida's Kissimmee-Okeechobee-Everglades ecosystem which extends from the chain of lakes at the headwaters of the Kissimmee River in the north to Florida Bay in the south. As such, it has had tremendous ecological value in the past. Despite significant detrimental changes in the Lake's hydrological regime and water quality since the early 1900s, the Lake continues to "provide[] habitat for a wide variety of wading birds, migratory waterfowl, and the federally-endangered Everglades Snail Kite." Id. The Lake suffers from major impacts due to hydrologic modifications. In the making since the days of the Great Depression, these include the construction of the Herbert Hoover Dike prior to World War II and the installation of a system of canals and levees built following congressional authorization just after the war in 1948. The latter was part of a comprehensive water resources project undertaken by the United States Army Corps of Engineers and known as the Central and Southern Florida Project for Flood Control (the "C&SF Project"). Whether producing water levels too high or too low, the changes in hydrology brought about by mankind over the past century have led to various impacts that have been significantly detrimental to the ecology of the Lake and the surrounding area. Aside from hydrologic modifications, there have been other factors that have led to significant impacts detrimental to the Lake and its ecology. Excessive nutrient loading is one of them. Nutrient loading has occurred because of the conversion of much of the land around the Lake to agriculture, cattle ranches and dairy farms. The conversion is described in the Lake Okeechobee Surface Water Improvement and Management (SWIM) Plan, Planning Document dated February 28, 2003, prepared by the Lake Okeechobee Division of the Northern District Restoration Department of the South Florida Water Management District (the "SWIM Planning Document"): To the north [of the Lake], dairy farms and beef cattle ranching became the major land uses, while to the south, sugarcane and vegetable farming increased rapidly. These land use changes resulted in a large increase in the rate of nutrient (nitrogen and phosphorus) inputs to the lake, and detrimental changes occurred in the lake's water quality. Id. at 10. The inputs of phosphorus and their impact is also described in the SWIM Planning Document. Pertinent to this proceeding, in particular, the document describes the phosphorus inputs north of the Lake and their impacts: Phosphorus inputs from the northern watershed increased dramatically, and can be traced primarily to the animal agricultural activities in that watershed. Loads (concentrations times flow) of total phosphorus to the open water region of the lake nearly tripled between the early 1970s and mid-1980s, and coincident with this trend, the concentration of phosphorus in the lake itself increased from below 40 to over 100 parts per billion (ppb). Blooms of blue-green algae became more common, with particularly large blooms covering more than 40 percent of the lake surface in the 1980s. Id. at 10-11. The Nine Northern Tributaries Among the rivers, streams, creeks, canals and sloughs that comprise the Lake Okeechobee Basin are nine tributaries to the north: Taylor Creek, Nubbin Slough, the S-135 Canal, Mosquito Creek, Otter Creek, Lettuce Creek, Henry Creek, Myrtle Slough, and Chandler Hammock Slough (the "Nine Northern Tributaries"). Located in sub-basins (the S-191, S-133, S-135, and S-154 Basins) within the Lake Okeechobee Basin, the Nine Northern Tributaries contribute between five and fifteen percent of the annual water flow into the Lake. All are plagued by nutrient pollution that consists mainly of excess nitrogen and phosphorus. The Nine Northern Tributaries were relatively unpolluted prior to agricultural development in the area. In the aftermath, the environments in their respective watersheds have been profoundly altered by pollution. The pollution has been especially dramatic with regard to phosphorus. For example, phosphorus levels in the area were lower than 60 parts per billion ("ppb") in 1953. In recent years, phosphorus levels for most basins in the Lake Okeechobee water levels have been double and triple 1953 levels. In some cases phosphorus levels have been at even greater multiples of 1953 levels. One of the higher examples is the Taylor Creek/Nubbin Slough Basin where the level of phosphorus for the period 1990-1994 was 602 ppb, an increase ten-fold over that forty years earlier. Between nitrogen and phosphorus (and all other pollutants, for that matter), phosphorus is the pollutant of primary concern in the Nine Northern Tributaries. Designated Uses In 1967, Florida adopted Chapter 403, entitled "Florida Air and Water Pollution Control Act" (the "Pollution Control Act.") Ch. 67-436, Laws of Fla. The Pollution Control Act recognized that water bodies serve multiple beneficial uses that must be protected to promote the public welfare. Water quality standards were adopted for this purpose. Chapter 403 established a policy to "conserve the waters of the state and to protect, maintain, and improve the quality thereof for public water supplies, for the propagation of wildlife, fish, and other aquatic life, and for domestic, agricultural, industrial, recreational, and other beneficial uses." § 403.021(2), Fla. Stat. The Pollution Control Act empowered the Department to "develop . . . a grouping of water into classes . . . in accordance with the present and future most beneficial uses," and to "establish . . . water quality standards for the State as a whole or for any part thereof[.]" § 403.061(10) and (11), Fla. Stat. In 1968, the Department of Air and Water Pollution Control (one of DEP's predecessor agencies) promulgated regulations enumerating five classes of beneficial uses to be protected. The Rule enumerating the five classes can now be found at Florida Administrative Code Rule 62-302.400. Water bodies not specifically identified in the Rule are listed as Class III on the basis of the designated uses "Recreation, Propagation and Maintenance of a Healthy, Well-Balanced Population of Fish and Wildlife." Fla. Admin. Code R. 62- 302.400(1) and (12). The Nine Northern Tributaries are all Class III waters. See Department's Ex. 4. The import of a Class III designation was described at hearing by Mr. Mandrup-Poulsen: The designated uses is intended as a way to describe quickly and easily to those in the profession, and to the public, as to what the intent and the use of that water body ought to be. So that for Class [III], for example, . . . we would intend to protect those [so designated] to ensure that they have a healthy and well-balanced natural population of fish and wildlife (Tr. 195-196) "Water quality criteria" were adopted for each class to protect the uses in that class and all higher numbered classes. Fla. Admin. Code Ch. 28-5 (1968). Since then, the Department has updated the criteria and added a narrative nutrient criterion that applies to Class III waters: (48)(b) Nutrients - in no case shall nutrient concentration of a body of water be altered so as to cause an imbalance in natural populations of aquatic flora and fauna. Fla. Admin. Code R. 62-302. The phrase "imbalance in natural populations of aquatic flora and fauna" for this narrative criterion, however, has not been defined by rule. The nutrient criterion also requires that the nutrient level be "limited as needed to prevent violations of other standards contained in this chapter." Fla. Admin. Code R. 62- 302. Phosphorus in Florida and Imbalance of Flora and Fauna There is a wide range of natural nutrient conditions in the state of Florida especially with regard to phosphorus. Phosphorus is common in Florida soils. In fact, some Florida soil is so rich in phosphorus that it is the site of phosphate mines, where phosphorus is mined for use in fertilizers and for other purposes. The presence of such large amounts of phosphorus is due to a combination of factors. Limestone formations, the base of Florida rock, and shallow reef systems inundated by marine waters over millions of years led to a sedimentary deposit system laden with phosphorus in the land mass that is Florida. The sedimentary system is now composed of phosphatic sands and clays. Soils laden with phosphorus contribute phosphorus to adjacent water bodies as part of a natural process independent of human activities. The presence of so much phosphorus in Florida soils and its natural leaching into water bodies poses a problem for the scientist asked to determine when phosphorus has created an imbalance in natural flora and fauna especially when other factors contribute to imbalance. There is no question, however, that there is too much phosphorus in the Nine Northern Tributaries and Lake Okeechobee to maintain a balance of natural flora and fauna and that the presence of this phosphorus is largely the result of human activity and disturbance. The Florida legislature, moreover, has said so. See Finding of Fact 36. The question for the investigator in pursuit of a TMDL for TP, such as the Department in this proceeding, is how much phosphorus can these water bodies tolerate before imbalance is reached. Another way of looking at the problem with regard to the streams at issue in this proceeding is: at what concentration level does TP allow the streams to sustain a healthy population of aquatic flora and fauna so as to avoid phosphorus impairment? Phosphorus Impairment The Nine Northern Tributaries were included on the list of impaired surface waters adopted by the Department through Secretarial Order issued August 28, 2002. They are central to this proceeding because they are the subject of the Proposed Rule by virtue of their identification in the Proposed Rule as "[o]ther waterbodies in the Lake Okeechobee Basin" subject to a TMDL set at "an annual median TP [total phosphorus] concentration of 0.159 mg/L." See Notice of Proposed Rulemaking, September 5, 2003, OR-1, Department's Exhibit No. 5, p. 3. Like the Nine Northern Tributaries, Lake Okeechobee has also been determined to be impaired due to the presence of excessive phosphorus. It is not an exaggeration to deem the Lake profoundly polluted by phosphorus. Concentrations have risen from 40 ppb in the early 1970s to 145 ppb in 2000. The Lake receives phosphorus both from external (such as the Nine Northern Tributaries) and internal sources. A large percentage of the lake bottom that was formerly covered in sand is overlain by organic mud, estimated to contain over 30,000 metric tons of phosphorus. Mud sediment accumulation and phosphorus deposition have increased significantly in the last 50 years. Phosphorus in the water column in the Lake, therefore, has an external and an internal source as well: sediment and deposition on the lake bottom. Over time, elevated phosphorus loadings from external and internal sources have intensified the eutrophication of the Lake. Eutrophication is apparent to the eye by the presence of widespread algal blooms. The algal blooms, in turn, have caused die-off of macro-invertebrate communities due to toxic byproducts of algal decay. Dense blooms of algae, moreover, adversely affects the quality of drinking water. As part of the commencement of the restoration process in the hope of overcoming the eutrophic nature of the Lake, the Department has adopted a phosphorus TMDL of 140 metric tons for the Lake. Atmospheric deposition will account for 35 metric tons of phosphorus entering the lake externally every year. The TMDL for the Lake, therefore, requires that phosphorus from surface water loading not exceed a maximum of 105 metric tons per year (the difference between the Lake's TMDL of 140 metric tons and the 35 metric tons contributed by precipitation and other contributions from the atmosphere). This limitation on surface water loading applies to the Nine Northern Tributaries and other surface waters in the Lake Okeechobee Basin. Phosphorus Impairment in the Okeechobee Basin The Lake Okeechobee Basin is heavily impacted by phosphorus. Streams within the basin are likely to be impacted by phosphorus as opposed to streams that meet reference conditions, that is, that are under minimal impacts, as explained, below. If the Lake is ever to be restored it is critical that the phosphorus that is introduced from external sources (other than atmospheric deposition) be reduced. External Phosphorus Load Reduction Four "major issues" critical to the restoration of the Lake Okeechobee ecosystem have been identified by the SWIM Planning Document. This proceeding is concerned with one of them: "[e]xternal loads of phosphorus [that] must be substantially reduced." Petitioners' Ex. 12, p. 10. Two enactments of the Florida Legislature address or relate to phosphorus pollution in the Lake and the Nine Northern Tributaries: the most recent, passed in 1999, is the Florida Watershed Restoration Act1; the other, passed in 1987, codifies the Lake Okeechobee Protection Program.2 The Lake Okeechobee Protection Program Unique among watersheds in the State, Lake Okeechobee is specially protected by the Legislature through the Lake Okeechobee Protection Program (the "Protection Program"). Under the Protection Program, the Legislature's goal is to provide "a reasonable means of achieving and maintaining compliance with state water quality standards" in conjunction with Section 403.067, Florida Statutes. See § 373.4595(1)(g), Fla. Stat. The "findings and intent" section of Section 373.4595, Florida Statutes (the "Protection Statute") bearing the catchline, "Lake Okeechobee Protection Program," sets out both the import of Lake Okeechobee to the State as well as the hydrological and water quality impacts the Lake has suffered due to the use of land in its watershed and construction of the C&SF Project. Section (1)(c) announces, moreover, the Legislature's finding "that improvement to the hydrology and water quality of Lake Okeechobee is essential to the protection of the Everglades." The statute goes on to declare "it . . . imperative for the state, local governments and agricultural and environmental communities to commit to restoring and protecting Lake Okeechobee and downstream receiving waters," Section 373.4595 (1)(d), Florida Statutes, and to develop and implement immediately a "watershed-based approach to address these issues." Id. With regard to phosphorus, the Legislature, in the Protection Statute, "finds that phosphorus loads from the Lake's watershed have contributed to excessive phosphorus levels in the Lake and downstream receiving waters and that reduction in phosphorus levels will benefit the ecologies of the systems." § 373.4595 (1)(e), Fla. Stat. This finding is supported by Petitioners' Exhibit 43, a page from the Lake Okeechobee SWIM Plan, in which it is stated: "Phosphorus is of particular concern in this system because it is an essential element that contributes to eutrophication in Lake Okeechobee [citations omitted]. Phosphorus within the Lake's water column increased dramatically from 40 ppb in the early 1970s to 145 ppb in 2000 [reference omitted]." Toward reducing phosphorus levels, the Protection Statute references a technical publication,3 South Florida Water Management District's Publication 81-2. See § 373.4595(1)(f), Fla. Stat. The technical publication is also referred to in Petitioners' Ex. 43, which describes attempts at phosphorus load reduction to the Lake that took place from the early 1980s to the early 1990s: A phosphorus load reduction goal was developed to restore the ecological condition of Lake Okeechobee. This goal requires a 40 percent reduction in phosphorus loading to the lake based on the data collected from 1973 to 1979 (Federico et al., 1981). Tributary phosphorus limitations were based upon reaching an in- lake phosphorus concentration of 40 ppb by July 1992 as recommended by a modification of the Vollenweider (1976) nutrient loading model, described in SFWMD Technical Publication 81-2 (Federico et al., 1981). As controls within the basin surrounding Lake Okeechobee increased, a noticeable decline in the phosphorus load to the lake occurred from 1983 to 1993 [reference omitted].[4] Despite this load reduction, no reduction of phosphorus occurred within the lake [reference omitted]. This in part was attributed to the huge amount of phosphorus that has accumulated over decades in sediments within this shallow lake [reference omitted]. As the external loads have declined, internal loads from the sediments have become more significant, acting as a buffer to the system and preventing the phosphorus concentration in the water column from declining. Petitioners' Ex. 43 (emphasis added). Recent data demonstrate the phosphorus pollution problem in Lake Okeechobee. The five-year moving average of the long-term phosphorus load to Lake Okeechobee (that includes an atmospheric load of 35 metric tons per year) was 554 metric tons as of 2002. According to the January 1, 2004, Lake Okeechobee Protection Plan, this included the "smallest measured historical load (169 Mtons in 2000), due to the worst drought in recent history; and the largest measured load in the past decade (780 metric tons in 1998) that was a very wet year " Petitioners' Ex. 14, p. 4. The Protection Statute also references the Legislature's call in 1999 for "subsequent phases of phosphorus load reductions [to be] determined by the total maximum daily loads [TMDLs] established in accordance with s. 403.067": "Florida Watershed Restoration Act," (or the "TMDL Act"). The Florida Watershed Restoration Act Originally passed in 1999 as Chapter 99-223, Laws of Florida, the Florida Watershed Protection Act, in its present form5 (the "TMDL Act") declares "that the waters of the state are among its most basic resources and that the development of a total maximum daily load program for state waters as required by s. 303(d) of the Clean Water Act [citation omitted], will promote improvements in water quality throughout the state through the coordinated control of point and non-point sources of pollution." § 403.067(1), Fla. Stat. The TMDL Act requires the Department to "submit periodically to the United States Environmental Protection Agency (the "USEPA") a list of surface waters for which total maximum daily load assessments will be conducted." § 403.067(2), Fla. Stat. The parties' descriptions of the requirements of the TMDL Act are in accord: In short, the [TMDL] Act requires the Department to formulate a prioritized list of "impaired waters' (i.e., that fail to meet water quality standards) to develop TMDLs for the listed impaired waters, and to allocate pollution load reductions so as to restore all impaired waters to water quality standards. §403.067, Fla. Stat. Petitioners' Proposed Final Order, pp. 9-10. Through the TMDL Act, the Legislature directed the Department to develop a methodology to identify waters of the state that were failing to meet the state's water quality standards due to pollutants. Using that methodology, the Department has been directed to assess the waters of the state and list as impaired those waters that fail to meet water quality standards because of a particular pollutant. Once those waters and causative pollutants have been identified, the Department is to establish a TMDL. Respondent's Proposed Final Order, pp. 11-12. TMDLs Defined as "the sum of the individual wasteload allocations for point sources and the load allocations for nonpoint source and natural background," the statutory definition of TMDLs in the chapter of the Florida Statutes that contains the TMDL Act continues, "[p]rior to determining individual wasteload allocations and load allocations, the maximum amount of a pollutant that a water body or water segment can assimilate from all sources without exceeding water quality standards must first be calculated." § 404.031(17), Fla. Stat. This definition was simplified at hearing by the Department's expert in the "development of total maximum daily load, DEP's Watershed Assessment Section Administrator Jan Mandrup-Poulsen. Mr. Mandrup-Poulsen testified that a TMDL, "is quite simply the amount of a pollutant that can be assimilated by a water body without causing the water body's designated use to be exceeded." (Tr. 194) As explained in a draft publication of the USEPA's Region 4 office, TMDL formulation is a process that: establishes the allowable loadings of pollutants or other quantifiable parameters for a waterbody based on the relationship between pollution sources and in-stream water quality conditions, so that states [such as Florida] can establish water quality based controls to reduce pollution from both point and non-point sources and restore and maintain the quality of their water resources [citation omitted]. Petitioners' Ex. 3, p. 2. Establishment of the amount of a pollutant that a water body can receive without exceeding water quality standards is not the end of the TMDL process for the Department. With the establishment of a TMDL, the Department is also required to "account for seasonal variations and include a margin of safety that takes into account any lack of knowledge concerning the relationship between effluent limitations and water quality." § 403.067(6)(a)2., Fla. Stat. This is what the Department has set about do for TP in the Lake Okeechobee Basin through its Proposed Rule. The Proposed Rule An Amendment to the Existing Rule The existing rule is Florida Administrative Code Rule 62-304.700 (the "Existing Rule"). The Existing Rule sets the TMDL for total phosphorus ("TP") in Lake Okeechobee at 140 metric tons. Atmospheric loading to Lake Okeechobee is considered to be 35 metric tons. That leaves 105 metric tons as the total amount of phosphorus that can flow into the Lake annually from surface sources such as the Nine Northern Tributaries. The 140-metric ton total phosphorus TMDL is to be met by the year 2015. Presently entitled "Total Maximum Daily Loads in the Southeast Florida District," the Proposed Rule will change the title of the Existing Rule to "Lake Okeechobee Basin TMDLs." In addition to a revision of the numbering scheme in the Existing Rule, the Proposed Rule adds the proposed TMDL (the "Proposed TMDL") for TP in the Nine Northern Tributaries expressed as a concentration level: 0.159 mg/L. ii. 0.159 mg/L In collaboration with the USEPA, the Department calculated the Proposed TMDL for TP in the Nine Northern Tributaries as "an annual median TP concentration of 0.159 mg/L." The Proposed Rule, § (2)(a). The Proposed Rule makes no allocation between point sources and non-point sources. The TMDL is allocated entirely to nonpoint sources because "there are currently no permitted point sources in the watershed." The Proposed Rule, § (2)(a)2. The Margin of Safety for the TMDL, required by the TMDL statute to be included in the TMDL's calculation,6 is declared to be "implicit." The following contains the textual amendments proposed by the Proposed Rule as they appear in the Proposed Rule's Notice of Proposed Rulemaking. They are underscored because they are new language added to the Existing Rule: Other Waterbodies in the Lake Okeechobee Basin Other waterbodies in the Lake Okeechobee Basin include Chandler Hammock Slough, Nubbin Slough, Mosquito Creek, Lettuce Creek, Henry Creek, S-135 Canal, Myrtle Slough, Taylor Creek, and Otter Creek. The Total Maximum Daily Load for these waterbodies is an annual median TP concentration of 0.159 mg/L, and is allocated as follows: the Wasteload Allocation for point sources is not applicable because there are currently no permitted point sources in the watershed. the Load Allocation for nonpoint sources is an annual median TP concentration of 0.159 mg/L, and the Margin of Safety is implicit. As tributaries to Lake Okeechobee, the load from these other waterbodies in the Lake Okeechobee Basin must also be consistent with the TP TMDL for Lake Okeechobee, above. Notice of Proposed Rulemaking, published September 5, 2003, OR- 1, Tab 5, p. 3. The Challenge to the Proposed Rule On September 26, 2004, pursuant to Section 120.56, Florida Statutes, the Petitioners filed at DOAH their petition to invalidate the Proposed Rule. The petition was amended several times. The petition at issue in the proceeding is the Second Amended Petition to Invalidate Proposed Rules. It was filed June 24, 2004, just more than one month before final hearing commenced. By virtue of the filing of the petition by the three Petitioners challenging the Department's rules, there are four parties to this proceeding: Florida Wildlife Federation, Environmental Confederation of Southwest Florida, Inc., Save Our Creeks, Inc., and the Department. Identification of the Parties Florida Wildlife Federation Florida Wildlife Federation ("FWF"), one of the three Petitioners in this case, is a Florida not-for-profit corporation with its principal place of business in Tallahassee, Florida. It has approximately 14,000 members throughout the state. Its purpose is to promote the preservation, management, and improvement of Florida's fish, wildlife, soil, water and plant life. Lake Okeechobee is a particular focus of FWF as well as the adverse affects of past management practices in the Lake's watershed that threaten the continued existence of the Lake. On behalf of its members, FWF has participated and continues to participate in legal and administrative challenges to defend and otherwise support rules that protect Lake Okeechobee. The organization also brought the civil action that resulted in a Consent Decree that requires promulgation of a TMDL for TP in the Nine Northern Tributaries. A substantial number of FWF members reside near Lake Okeechobee. They use and enjoy the waters of the Lake and the waters of the Nine Northern Tributaries. They observe and enjoy wildlife that rely on these waters for habitat. If the Proposed Rule is not determined to be invalid, there will be continuing adverse impacts to the waters of Lake Okeechobee and the Nine Northern Tributaries.7 These impacts will substantially affect a substantial number of FWF's members in their ability to observe, study and enjoy the waters and wildlife of the Lake Okeechobee basin. Environmental Confederation of Southwest Florida, Inc. Environmental Confederation of Southwest Florida, Inc. ("ECOSWF"), the second of the three Petitioners, is a Florida not-for-profit corporation with its principal place of business in Sarasota, Florida. It has approximately 100 members. They are business entities, governmental agencies and other organizations, and individuals who live in South Florida. Organized for the purpose of conserving natural resources in Southwest Florida, ECOSWF has participated in numerous legal challenges with the aim of preserving Florida's waters. The members of ECOSWF use and enjoy the waters of Lake Okeechobee and the Nine Northern Tributaries. They also observe and enjoy the wildlife that depend upon the waters for habitat. If the proposed rules are not determined to be invalid, there will be continuing adverse impacts to the waters of the Nine Northern Tributaries and the Lake.8 These impacts will substantially affect a substantial number of ECOSWF's members in their ability to observe, study, and enjoy the waters and wildlife of the Nine Northern Tributaries and the Lake. Save Our Creeks, Inc. Save Our Creeks, Inc. ("SOC"), the third of the Petitioners, is a Florida not-for-profit corporation with its principal place of business in Moore Haven, Florida. It has about 100 members who reside primarily in South Florida. Organized to preserve Fisheating Creek and other South Florida water bodies for the use and enjoyment of the public and for their natural resource value, SOC has participated in legal actions with the aim of preserving the environmental integrity of South Florida's rivers, streams, and lakes. A substantial number of SOC's members use and enjoy the waters of Lake Okeechobee and its tributary waters of the Nine Northern Tributaries and also observe and enjoy the fish and wildlife depend upon these waters for habitat. Department of Environmental Protection The Department is the state agency authorized to adopt TMDLs through rulemaking under Chapter 403. See §§ 403.061 and 403.067, Fla. Stat. Standing The parties stipulated to facts related to the standing of Petitioners. See Exhibit 4 to the Pre-hearing Stipulation, paragraphs 5-7. The Elements of the Challenge or Petitions The Petitioners' challenges may be divided broadly into two categories. The first of these is that the derivation by the Department of the Proposed TMDL for TP in the Nine Northern Tributaries (0.159 mg/L.) was so flawed as to render the Proposed TMDL arbitrary and capricious ("Flawed Derivation"). The second is that the Proposed TMDL contravenes the provisions of the Lake Okeechobee Protection Program because it has been set prior to the allocation among sources in the water basin, a condition precedent to the establishment of the TMDL in the view of Petitioners, allowed by the TMDL Act ("The Lake Issue"). The first of these two categories of the challenge is further sub-divided into discreet elements as shown in the findings below. Before addressing the two main categories of Petitioners' challenge, however, there is a preliminary matter to be addressed: the Department's decision to reject water quality modeling results when water quality modeling is the only statutorily-recognized method for developing a TMDL. The Department's decision to forego water quality modeling and accept the method eventually followed for development of the Proposed TMDL must be understood in context. The context includes the TMDL Law, a lawsuit filed against the USEPA, and the various methods for establishing a TMDL. The Law, the Lawsuit and the Methods In Subsection (1) of the TMDL Act, the Legislature declares "that the development of a total maximum daily load program for state waters as required by s. 303(d) of the Clean Water Act [citation omitted] will promote improvements in water quality throughout the state through the coordinated control of point and nonpoint sources of pollution." § 403.067(1), Fla. Stat. Before 1998, the Department had not extensively implemented the TMDL requirements of the Clean Water Act. As a result of a lawsuit against the USEPA, however, a consent decree was entered by USEPA and Earthjustice, the plaintiff in the lawsuit and organization that has some relationship with the Petitioners (the "Consent Decree"). Under the Consent Decree, USEPA agreed to require the Department to evaluate the Nine Northern Tributaries for TMDL development for nutrients by 2002. The USEPA followed through on its agreement under the decree and imposed the requirement for TMDL nutrient development by 2002 on the Department. In the same year that the Consent Decree was entered, 1999, the Florida Legislature passed the TMDL Act. Subsection (6) of the TMDL Act, bearing the catchline "CALCULATION AND ALLOCATION," imposes at its outset requirements on the Department before development of a TMDL for any water body or water segment determined to be impaired. The requirements include coordination with other groups to determine the data required, the methods of collection and analysis, and requirements for quality control: Prior to developing a total maximum daily load calculation for each water body or water body segment on the list specified in subsection (4), the department shall coordinate with applicable local governments, water management districts, the Department of Agriculture and Consumer Services, other appropriate state agencies, local soil and water conservation districts, environmental groups, regulated interests, and affected pollution sources to determine the information required, accepted methods of data collection and analysis, and quality control/quality assurance requirements. § 403.067(6)(a)1., Fla. Stat. The Department coordinated with groups that had data concerning the Nine Northern Tributaries. In the words of Mr. Mandrup-Poulsen, "[t]he Department considered all readily available data. The primary provider of data . . . is the South Florida Water Management District." (Tr. 204) The Department gave notice by publication on June 27, 2003, of three public workshops in Tallahassee, Perry, and Okeechobee, Florida, and public comment periods on "draft total maximum daily loads . . . for . . . the Northern Tributaries to Lake Okeechobee (nutrients and dissolved oxygen)." Department's Ex. 2. The notice set a period for acceptance of public comment on the draft TMDLs through July 31, 2003, and announced placement of the draft TMDLs on the Department's web site. The TMDL Act endorses only one principal method of analysis of TMDL data: water quality modeling.9 The TMDL Act, however, does not restrict the method of analysis to water quality modeling. In fact, there are at least three other methods that are valid, albeit not endorsed statutorily by the Florida Legislature. These methods are set out in a publication of the Office of Water and the Office of Science and Technology of the USEPA bearing a date of July 2000. The publication is entitled "Nutrient Criteria Technical Guidance Manual" (the "Guidance Manual.") Before involving itself with the three methods in the Guidance Manual or any other method not statutorily-recognized, DEP, as to be expected from the legislative endorsement, attempted to use water quality modeling. This attempt was not merely because of the statutory endorsement. Aside from being statutorily-recognized, water quality modeling was the method "routinely use[d by DEP] in developing maximum daily loads." (Tr. 197) Water quality modeling, moreover, is DEP's "standard operating procedure," id., and a method that the Department has used successfully on a number of occasions and one that, as of the date of final hearing, it continues to use. Water quality modeling requires a great deal of data. In pursuit of data collection and other activities required by water quality modeling, the Department pursued the development of TMDLs for TP in the Nine Northern Tributaries "for many months and at great expense both in personnel time and contractual time." Id. Nonetheless, on the basis of the water quality modeling results, the Department was "unable to come to a scientifically defensible conclusion." Id. Approaches to the Development of the TMDL According to Mr. Mandrup-Poulsen, in developing the TMDL for TP, the Department was not looking for a level of phosphorus that would or would not cause an imbalance in flora and fauna. Instead, the focus was "to ensure that [the Department] had evidence sufficient to support the fact that the concentrations in the TMDL were protective, conservative, and did allow for a healthy population of fish and wildlife." (Tr. 197) Presumably, this would be at a level below the concentration level at which imbalance would occur and, therefore, would comply with the narrative criterion. After the inability to reach a scientifically defensible conclusion on the basis of water quality modeling, the Department attempted alternative approaches. The first post-water quality modeling attempt was by way of an "Artificial Neural Network." (Tr. 198) The employment of a "Neural Network" required the Department to recognize certain realities. For example, the Class III criterion for dissolved oxygen ("DO") of 5.0 milligrams per liter mg/L, at present, is not achievable in the part of the watershed in which the Nine Northern Tributaries are located. Mr. Mandrup-Poulsen, the administrator of the Watershed Assessment section in the Bureau of Watershed Management within the Department's Division of Water Resource Management, therefore, set the DO criterion at a much lower level for purposes of the Neural Network approach. The criterion selected for DO was 1.5 mg/L. The selection of such a low numeric value for DO was criticized by the USEPA. In a document entitled "EPA Comments on FEDP's Nutrients and DO TMDL for the Northeast Tributaries to Lake Okeechobee [the Nine Northern Tributaries]," the EPA wrote, Please explain how the minimum DO requirement of 1.5 mg/l was selected. The DO water quality criterion for Class III fresh water in Florida is "Shall not be less than 5.0 mg/L. Normal daily and seasonal fluctuations above these levels shall be maintained." (See Section 62-302.530(31), F.A.C.) Pursuant to 40 CFR §130.7(c)(1), "TMDLs shall be established at levels necessary to attain and maintain the applicable narrative and numerical WQS..." If FDEP's intent is to change the DO water quality criterion for these water bodies from 5.0 mg/L to 1.5 mg/L, then a Site Specific Alternative Criterion (SSAC) must be developed through Florida normal administrative process or the State must explain how the target properly implements water quality standards. Otherwise, the stated goal of the TMDL must be to attain the 5.0 mg/L DO water quality criterion. Petitioners' Ex. 86D, para. 5 (emphasis added). The selection of 1.5 mg/L for DO was also criticized by the South Florida Water Management District as "arbitrary," see Petitioners' Ex. 86-E, page stamped 002178, and as without "acceptable justification . . . because it will not support a well-balanced community . . . of fish." Id. at pages stamped 002175 and 002176. The Department was not unaware that the DO level selected was far below the level necessary to sustain Class III water uses. Being so far below the Class III criterion referred-to by USEPA, the 1.5 mg/L., was not intended by DEP to be a replacement criterion. In Mr. Mandrup-Poulsen's view, it "was the floor . . . as low as [one should] go with this particular approach [the Neural Network approach.]" (Tr. 200) The Neural Network Approach yielded a value of 115 ppb for TP in the Nine Northern Tributaries, a lower numeric value, and hence more protective, than the Proposed TMDL of 159 ppb. Rulemaking was initiated to establish a TMDL of 115 ppb. A draft of the rule was presented at a public hearing on July 8, 2003. The value produced disagreement within DEP or as it was put in an internal DEP memorandum dated July 14, 2003, "among ourselves (DEP)." Petitioners' Ex. 96A, stamped 002063. Written evidence of the dissension is the following which appears in another memorandum internal to DEP, dated July 14, 2003, that is attached to the first July 14 memorandum: "c) It is highly unlikely that tributary concentrations of 0.115 mg/l will result in the Lake meeting its TMDL requirement, and as such will require the eventual lowering of these tributary TMDLs. Using a DO criteria of 2.0 or 2.5 mg/l might result in a tributary TP concentration more amenable to Lake restoration." Petitioners' Ex. 86-A, second page, stamped 002064, (emphasis added). The 0.115 mg/L concentration level produced by the Neural Network Approach also yielded the contradictory result that to improve the DO level necessary to sustain fish and other aquatic biota would require the addition of more phosphorus to the Nine Northern Tributaries.10 Such an outcome was neither scientifically supportable nor acceptable to the Department and so the Neural Network Approach was rejected and its concentration level abandoned. Proceedings to propose the 0.115 mg/L in rule, accordingly, were halted. Driven by USEPA-imposed requirements under the deadline set by the Consent Decree and with the results of the Neural Network Approach having proved unsatisfactory, the Department made a second attempt at water quality modeling. This attempt, just as the first, proved to be scientifically indefensible. The process was described in more detail by Mr. Mandrup-Poulsen at hearing: The Department had a comment period that extended for 30 days, and our modeling efforts were made known to both the public and to EPA. EPA was very much involved with the model development process. They were concerned because, again, they have a consent decree with Earthjustice that they were obligated to report to a judge whether they were generating the TMDLs per the consent decree and the time line in that consent decree. When the results were not satisfactory for either of those two approaches [water quality modeling and the Neural Network approach], we had advised EPA that we would continue to pursue the water quality modeling contract, and had hoped that we would be able to get improvements on that model. We provided as much data as we could, and we continued to provide our expertise to Dr. Bottcher and his staff [the water quality modelers] in hopes that we would get a better outcome. (Tr. 202) The continued resort to the water quality modeling method failed again to yield a better outcome. The Department alerted the USEPA that its models were not producing scientifically defensible results. With the Consent Decree deadline looming, the USEPA, therefore, encouraged the Department to take an approach referred to as the "Reference Stream Approach." In actuality, the USEPA's role was more than mere encouragement. Personnel from USEPA made the calculations that produced the Proposed TMDL on the basis of data submitted to USEPA by the Department. This data involved streams, most of which were initially identified by the Department, as described in more detail below. Mr. Mandrup-Poulsen's expression of this arrangement was that the Department "evaluated [the work of the USEPA] and then produced [the Proposed] TMDL in September of 2003." (Tr. 203) In other words, while the USEPA performed the calculations used to determine the 75th percentile, the Department evaluated that work, so as, in essence, to adopt the calculations of USEPA as its own in support of the Proposed TMDL derived by the 75th Percentile Method. The value ultimately derived for the Proposed TMDL, therefore, was the result of collaboration between USEPA and the Department or as the Department put it in one of its reports, "[f]or this TMDL [the Proposed TMDL], the Department worked with the Environmental Protection Agency (EPA) to determine a target TP concentration using a reference stream approach." Petitioners' Ex. 2, p. 4. Mr. Mandrup-Poulsen's concessionary opinion of the Proposed TMDL is that while it is not based on the highest quality model it is based on "the best science available at the time." (Tr. 203, (emphasis added)) He believes it provides the protection necessary "to begin the restoration process" id., for the Nine Northern Tributaries. (Id. (emphasis added)) He sees the Proposed TMDL as supported by three factors: (1) a guidance manual published by the USEPA; (2) support by USEPA's technical staff; and (3) "multiple layers of management review." Id. In its Proposed Recommended Order, the Department describes the Reference Stream Approach as follows: "The reference stream approach is one of the USEPA's recommended approaches for the development of nutrient criteria. The approach examines the phosphorus concentrations in healthy streams and designat[es] the 75th percentile of phosphorus concentrations in these reference streams as a target in the stream to be remediated." Respondent's Proposed Recommended Order, pp. 25-26. In fact, the USEPA's Reference Stream Approach is more complicated than the Department's position in this proceeding would lead one to believe. The Department's over-simplification of the Reference Stream Approach is plain from reading of the source extolled by the Department as support for the Proposed TMDL: the "Nutrient Criteria Technical Guidance Manual" for "Rivers and Streams" published in July of 2000 by the USEPA's Offices of Water and Science and Technology (the "Guidance Manual.") The Guidance Manual Chapter 7 of the Guidance Manual was admitted into evidence as Petitioners' Ex. 16. Entitled "Nutrient and Algal Criteria Development," the chapter "addresses the details of developing scientifically defensible criteria for nutrients and algae." Petitioners' Ex. 16, Page 93. Three approaches are provided by the Guidance Manual for use by states in deriving numeric criteria related to nutrients for streams in their eco-regions. These are described in the Guidance Manual as: "(1) the use of reference streams, (2) applying predictive relationships to select nutrient concentrations that will result in appropriate levels of algal biomass, and (3) developing criteria from thresholds established in the literature." Id. The Department did not attempt to derive a TMDL for TP in the Nine Northern Tributaries using either the second or the third approach offered by the Guidance Manual. The USEPA encouraged the first approach, the use of reference streams. The Department provided stream data to the USEPA and then USEPA calculated a phosphorus concentration level based on that data. (An extended discussion of the way this data was provided by the Department - a part of Petitioners' case - takes place below.) The USEPA, however, with the Department's concurrence or acquiescence, did not follow the complete methodology under the Reference Stream Approach. It followed only part of the methodology. Petitioners challenge the method used to derive the Proposed TMDL because it entailed only part of the entire, more involved, methodology. In their view, the Department's acceptance of a concentration level determined by USEPA's calculations under only part of a methodology renders the Proposed TMDL arbitrary. The Guidance Manual bears out Petitioners' assertion that the method used to derive the Proposed TMDL was, indeed, only a part of a more comprehensive methodology. The Guidance Manual's discussion of the Reference Stream Approach under the heading, "Using Reference Reaches to Establish Criteria," see Petitioners' Ex. 16, Page 94, takes up the better part of four pages of the publication, i.e., pages 94 through 97. As a preliminary matter, the use of reference streams Reference Stream Approach, "requires identification of reference reaches for each established stream class based on either best professional judgement (BPJ)or percentile selections of data plotted as frequency distributions." Id. The process of identifying reference streams "allows the investigator to arrange the streams within a class in order of nutrient condition (i.e., trophic state) from reference, to at risk, to impaired." Id. The Guidance Manual warns that when minimally- disturbed streams are rare in an ecoregion, "[c]riteria developed using reference reach approaches may require comparisons to similar systems in States or Tribes that share the ecoregion so that criteria can be validated." Id. Thus, the manual recognizes a difference between streams that exhibit reference conditions ("reference streams") and other streams that are too degraded or impaired to qualify as reference streams and, in methods using the latter types of streams, indicates the import of comparative review for purposes of validation. The difference between "reference" streams and streams that do not exhibit "reference conditions" is apparent from the definition of reference reaches or reference streams provided by the manual: "relatively undisturbed stream segments that can serve as examples of the natural biological integrity of a region." Id. Furthermore, the manual refers to reference streams elsewhere as "acknowledged to be in an approximately ideal state for a particular class of streams." Petitioners' Ex. 16, Page 95. Reference streams, therefore, do not include degraded streams or streams that are degraded even if they are the "least" impacted in an impacted region. This definition is crucial to the Petitioners' case. The reference streams chosen, as discussed below, did not meet the Guidance Manual's definition. Rather than being "relatively undisturbed stream segments" that serve as "examples of the natural biological integrity of a region," or that are "in an approximately ideal state," the reference streams chosen by the Department were "the least impacted streams for that stream class" within the area of the Nine Northern Tributaries, an area that has been greatly impacted. Use of Reference Reaches The Guidance Manual offers three methods of using reference reaches (the "Three Reference Streams Methods") to derive a numeric value for nutrients. They are: Characterize reference reaches for each stream class within a region using best professional judgement and use these reference conditions to develop criteria (the "BPJ Method"). Identify the 75th percentile of the frequency distribution of reference streams for a class of streams and use this percentile to develop the criteria ([reference omitted]) (the "75th Percentile Method"). Calculate the 5th to 25th percentile of the frequency distribution of the general population of a class of streams and use the selected percentile to develop the criteria ([reference omitted]) (the "25th Percentile Method"). Petitioners' Ex. 16, Page 94. The three methods are not three separate methodologies, however; the latter two, the "percentile" methods, are part of one methodology that is more comprehensive then either of the two percentile methods, alone. Under this comprehensive methodology, as a preliminary step, "a reference condition may be selected using either of two frequency distribution approaches." Petitioners' Ex. 16, Page 95. In the first of the two frequency distribution approaches, the 75th Percentile Method: a percentile is selected (EPA generally recommends the 75th percentile) from the distribution of primary variables of known reference systems (i.e., highest quality or least impacted streams for that stream class within a region). As discussed in Chapter 3, primary variables are TP, TN, chl a, and turbidity or TSS. It is reasonable to select a higher percentile (i.e., 75th percentile) as the reference condition, because reference streams are already acknowledged to be in an approximately ideal state for a particular class of streams [reference omitted]. Id. (emphasis added) The second of the two frequency distribution approaches, the 25th Percentile Reference Stream Method is also described in the Guidance Manual: [It] involves selecting a percentile of (1) all streams in the class (reference and non- reference) or (2) a random sample distribution of all streams within a particular class. Due to the random selection process, an upper percentile should be selected because the sample distribution is expected to contain some degraded systems. This option is most useful in regions where the number of legitimate "natural" reference water bodies is usually very small, such as highly developed land use areas (e.g., the agricultural lands of the Midwest and the urbanized east or west coasts.) The EPA recommendation in this case is usually the 5th to 25th percentile depending upon the number of "natural" reference stream available. If almost all reference streams are impaired to some extent, then the 5th percentile is recommended. Id. (emphasis added) (Although described as involving selection of a 5th to 25th percentile, for shorthand purposes, this second percentile method is referred-to in this order as the "25th Percentile Method Reference Stream Method.") There is a critical distinction between stream data used under the two percentile methods. Under the 75th Percentile Method, the streams are to exhibit reference conditions, that is, they are to be minimally impacted or in an approximately ideal state for their class. Data used for the 75th Percentile Method should not include data from streams that are impacted or degraded or the least-impacted for a region that is heavily impacted. The 25th Percentile Method, on the other hand, is expected to use data from streams that have been impacted since it uses data from the general population of streams in a region. This population would include impacted, degraded streams or, in a region that is heavily impacted, some of the least-impacted streams as well as more impacted streams. If the streams were generally impacted or impacted to a great extent, then the percentile chosen to derive a numeric value would not be the 25th percentile, but a lower percentile with a range that reaches as low as the fifth percentile if the general population is sufficiently impacted. Ultimately, the Guidance Manual points out, the 75th Percentile Method and the 25th Percentile Method are "only recommendations" because the "actual distribution of the observations should be the major determinant of the threshold point chosen." Id. An example is given in the Guidance Manual of when the 75th Percentile Method produces a concentration level of 20 ppb and the 25th Percentile Method produces a level of 25 ppb. "Because there is little distinction [in such a case], the Agency may select either 20 [ppb], 25 [ppb], or the intermediate 23 [ppb] . . . ." Id. Each state is cautioned, however, to "similarly calculate reference conditions initially using both approaches [the 75th Percentile Reference Stream Method and the 25th Percentile Reference Stream Method] to determine which method is most protective." Id. Once the calculations are made, the Guidance Manual is clear: "[t]he more conservative approach is recommended for subsequent reference condition calculations." Id. In other words, the State is to choose the lower value produced by the two methods when deriving a TMDL. Margin of Safety The margin of safety contained in the Proposed Rule (one that is implicit in the Proposed TMDL) is viewed favorably by DEP because it used the "75th Percentile Method" to establish the TMDL. Since the concentration of TP theoretically could be higher, that is at a level in excess of the 75th percentile derived from the method, the Department's view of the Proposed TMDL is that it is a conservative one. The Department's view depends, however, on the validity of using only the 75th Percentile Method to establish the Proposed TMDL and not deriving a value based on the 25th Percentile Method for purposes of comparison and selection of the more protective value. It also depends on the validity of the streams chosen as the reference streams for the purposes of data collection. In addressing the selection of reference streams by DEP for use in deriving the Proposed TMDL, it is useful to understand the background that preceded the selection of the reference streams as well as historical information about phosphorus in Florida waters. Historical Information Historical information plays a role in the analysis of appropriate nutrient levels in water bodies. Numbers for historical phosphorus levels inform the analysis or, as Dr. Boyer put it at hearing, gives the investigator "another piece of evidence as to what . . . that system had been before and what could be achieved now." (Tr. 93) Two pieces introduced into evidence by the Petitioners comprise the historical evidence in the record of this proceeding. One, not quite two decades old, is more recent, a 1986 USEPA publication for guidance to the states; the other is a report submitted to the Florida Geological Survey more than half a century ago. The report sums up the analysis of phosphorus data collected prior to many of the drastic changes in land use in the State that have contributed to so much of the problem decried by the Florida Legislature that the Proposed TMDL is intended to address. The report regarding phosphorus in Florida water bodies in the mid-20th Century was referred-to in the record as the "Odum Report." The Odum Report On January 9, 1953, Howard T. Odum of the Department of Biology at the University of Florida submitted a report (the "Odum Report") to the Florida Geological Survey. Entitled "Dissolved Phosphorus in Florida Waters," it appears as Part I in a 1953 Report of Investigations and Miscellaneous Studies published by the State through the State Board of Conservation and the Florida Geological Survey. Mean values of phosphorus in Florida streams are divided into two categories by the report: those in the Phosphate District where "streams are enormously laden with phosphorus" and those elsewhere under the category of "Other." See Petitioners' Ex. 20, p. 13. Data was collected from 18 streams in the Phosphate District and from 44 "other" streams. In the "Phosphate District," the mean value was 0.876 micrograms per liter or 876 ppb; in the "Other" streams the mean value is listed as 0.046 micrograms per liter or 46 ppb. Id. The Department considered the historical data of the Odum Report but gave it short shrift for several reasons: first, the data set is "very limited." (Tr. 206) Second, "collected back in the fifties, [it] might not have met the quality assurance that we would expect for data [today]." Id. Third, the data refers to "dissolved" phosphorus which is a fraction of total phosphorus and therefore a subset of the data needed to establish a TMDL for TP or "total" phosphorus. Most significantly, in the Department's view, the data does not assist in the Department's inquiry to "find values that are still protective of the designated use" (tr. 207) that is, a value that is higher than the historical value but one that will still support the designated use. ii. 1986 USEPA Document On May 1, 1986, the Office of Water Regulations and Standards for the USEPA published a guidance document entitled "Quality Criteria for Water 1986." See Petitioners' Ex. 19. It stated that "[t]o prevent the development of biological nuisances and to control accelerated or cultural eutrophication, total phosphates as phosphorus (P) should not exceed 50 [ppb] in any stream at the point where it enters any lake or reservoir, nor 25 [ppb] within the lake or reservoir." Id. As with other historical reporting, the 1986 Statement by the USEPA has been rejected by the Department. This time the rejection is on the ground that "it is very difficult to generalize. There is a very strong need to assess on a case-by-case basis the capacity of each water body as it enters into a different water body." (Tr. 210) Background Provided by Mr. Frydenborg Russell Frydenborg, the Department's expert in aquatic ecology (among other fields), was not involved in the selection of the Five Reference Streams. He was the main witness for the Department, however, in defense of their selection, largely on the basis of a post-proposal inquiry he conducted to confirm the validity of the Proposed TMDL. In addition to testifying about his after-the-fact justification, he provided background by way of testimony that included the Department's experience with reference streams and the Nine Northern Tributaries, in general. A Reference Stream Approach for establishing numeric criteria for nutrients had never been used prior to its use in this case. A reference site approach was used to set a phosphorus concentration level for the water bodies in the Everglades. It is an approach similar to the approach used for the Proposed TMDL.11 But a reference site approach and a reference stream approach are not precisely the same. Streams are "a whole different type of beast." (Tr. 241) For example, unlike a lake or a standing body of water, "stream biology is very dependent upon flow regime." (Tr. 246) Artificial channelization of a stream affects its habitability for biota. As explained by Mr. Frydenborg: [O]nce you channelize a stream and take out its bends, . . . you will eliminate vast quantities of habitat that the organisms can be able to colonize . . . [Y]ou'll destroy [habitat] when you channelize, and you destroy the hydrologic regime as well. [There will no longer be] microhabitats within the stream where you have different areas of different flow. [It will cause the organisms] to catastrophically drift. (Tr. 247) Bank stability is another factor important to stream evaluations. Erosion can cause sediment flow into a stream system and bring unwanted sand, silt, muck and organic debris that will cover the substrates and keep them from being suitable for macroinvertebrate colonization. The state of riparian buffer systems has an impact on stream ecological health particularly in cases of human encroachment. Likewise the riparian vegetation zone, particularly leaf-litter fall originating within the zone, has an impact on ecological stream health. The impact is detrimental when the zone is disturbed by human activities. Selection of the Reference Streams by DEP Data from five reference streams (the "Five Reference Streams") were used in deriving the Proposed TMDL by the 75th Percentile Method. The Five Reference Streams are Fish Slough, Cypress Slough, Fort Drum Creek, the Northwest Fork of the Loxahatchee River (the "NW Fork") and the North Fork of the Loxahatchee River (the "North Fork"). With the exception of Fish Slough, the reference streams were initially identified by an Environmental Manager in the Department: Julie Espy. Ms. Espy was not called by the Department to the witness stand to explain at hearing the identification of the reference streams. Her deposition was introduced into evidence, however, by Petitioners because the circumstances surrounding the identification of these four streams (the "Four Reference Streams") inform their claim that the process for the derivation of the Proposed TMDL was arbitrary and capricious. Ms. Espy was a logical person to have assisted in the selection of reference streams. Her duties includes the supervision of algal and freshwater macroinvertebrate taxonomy groups, the management of freshwater data and filed assessments and sampling of rivers, wetlands, lakes, canals, and streams. The data she manages, moreover, is collected for various programs that include TMDL programs. All in all, in her words, they include "Everglades, TMDL, small projects, like restoration projects [and] monitoring. Some of it is method development data." Petitioners' Ex. 90, p. 7. Ms. Espy was a logical choice to choose reference streams based on experience with programs and the types of data she managed. Yet, when asked to identify streams in the area in which the Nine Northern Tributaries are located, Ms. Espy was not informed of the purpose of the identification. The request was made by USEPA when Ms. Espy was contacted in mid-2003 by "David Melgaard from EPA." Id. at 10. Prior to the request by Mr. Melgaard, no one from the Department had requested or ordered that she participate in the development of the Proposed TMDL. When Mr. Melgaard asked about some "six or seven" (id. pp. 10-11) specific streams in the area of Lake Okeechobee, that included Fish Slough and Cypress Slough, he did not inform Ms. Espy why she had been contacted or the use to which the information would be put. Mr. Melgaard suggested that she search in Ecoregion 75(d). Canals were excluded because they "don't act the same as a stream echo system. With all the hydrological modification, the SCI metrics [for canals] . . . don't work the same [as for streams]." Id. at 11-12. The following colloquy took place in Ms. Espy's deposition when she was asked the basis of her recommendation for the Four Reference Streams: Q What were you looking at in making these recommendation? A I was using our GIS coverage. We have data layer that includes all of our biological stations, so that one thing I looked at, because it also had the ecoregion coverage, so I could see spatially the proximity of the sites and that type of thing. Q What else were you looking at? * * * A That's all I was looking at. He was just asking me for sites. Q You were not making an assessment about the appropriateness of the stream for any purpose? A No. Q You were strictly identifying streams that were in proximity -- A Biological samples -- where biological samples had occurred. I might add, that at the time that I requested this, he did not approach me with we are looking for streams for the Lake Okeechobee tributary TMDL. I was totally unaware of why he was asking for the information. I really didn't have any context to base that on. Q Have you ever visited any of these streams A I went -- Q I mean prior to the site visit that took place in April [of 2004]. A No. Q At the time you were making these suggestions to EPA had you ever visited any of these streams? A No. Id. at 13-15. On August 18, 2003, Ms. Espy sent an e-mail message to Mr. Melgaard. The message listed the Four Reference Streams. Ft. Drum Creek and Cypress Slough were listed as "closest to the Fish Slough site" (Petitioners' Ex. 90, Ex. 2.); the "NW Fork of the Loxahatchee River" and the "North Fork of the Loxahatchee River" were described as "further away, but . . . very good (biologically). They've been sampled numerous times but may be too large to compare to the others." Id. After informing Mr. Melgaard that they were in "ecoregion 75d," the message from Ms. Espy stated as she later confirmed at her deposition, "I haven't been to any of these sites." Id. Following the transmission of the message to EPA, Ms. Espy received an e-mail message from Mr. Melgaard. See Petitioners' Ex. 90, Ex. 3. It asked her to "ask the biologists from that area if comparing nutrient levels in the reference streams to those in the North Okeechobee Tribs is appropriate considering all the hydrological modifications in the Lake O [Lake Okeechobee] area." Id. Ms. Espy spoke to Mark Thompson, a biologist from the Department's southeast district office but Mr. Thompson "wasn't very familiar with any of the sites." Ms. Espy did not check with anyone else. She relayed the outcome of her inquiry to EPA but was not asked any further about the Four Reference Streams prior to the publication of the Proposed Rule in September 2003. In October of 2003, approximately 6 weeks after the publication of the Notice of Proposed Rulemaking with regard to the amendments to the Existing Rule that establish the Proposed TMDL, Dan Scheidt of Region 4 of the USEPA, sent an e-mail message (the "October 2003 E-Mail Message") to Ms. Espy: Julie- I am trying to follow up and close the loop on proposed stream TP reference sites for the S-191 basin. There are 5 reference sites proposed for S-191 basin TP: these four along with Fish Slough: [Code and No. IDs omitted] Ft. Drum Creek [" " " " " " " " ] Cypress Slough [" " " " " " " " ] NW Fork of the Loxahatchee River [" " " " " " " " ] North Fork of the Loxahatchee River For which of these sites does FDEP have bio data that confirms that these are in fact reference sites, ie., there is no impairment due to nutrients. Thanks Ex. 4 attached to Petitioners' Ex. 90. Not surprisingly, since the rule amendment containing the Proposed TMDL had been published more than a month earlier, Ms. Espy did not respond promptly to Mr. Scheidt. At the time of her identification of the Four Reference Streams for USEPA, Ms. Espy had not been involved in the selection of Fish Slough as the fifth reference stream. Nor did she have any familiarity with Fish Slough. Of the Four Reference Streams she identified for USEPA, Ms. Espy was familiar at the time she suggested them with only two: the NW Fork and the North Fork. Her familiarity was based on receipt of "samples from those two sites on a few occasions in the laboratory." (Petitioners' Ex. 90, p. 15). The basis of her familiarity was described in this way: "I was familiar with analyzing the samples, putting the data into the database and what those results were." Id. When the streams were recommended Ms. Espy had not examined their SCI scores nor the data that supported the scores. Ms. Espy had never looked at any bio assessment data with regard to the reference streams prior to December 16, 2003. In response to the USEPA October E-mail Message, however, Ms. Espy eventually provided Stream Condition Index ("SCI") scores. The entirety of the scores consisted of one score for Fish Slough, one score for Cypress Slough, six scores for Fort Drum Creek, 15 for the North Fork of the Loxahatchee and 16 for the Northwest Fork of the Loxahatchee. These scores were compiled from the statewide biological database. The scores were sent to USEPA in a November 2003 e- mail message. In her e-mail message, Ms. Espy wrote to Mr. Scheidt at USEPA: Attached find the macroinvertebrate data we have for these sites [the Four Reference Streams ]. These data are the Stream Condition Index scores for these sites. I would not say that because these sites have good SCI scores they have NO impairment for nutrients. These sites are just the best available for that area in the state. Ex. 4, 3rd page, attached to Petitioners' Ex. 90 (emphasis added). This message is consistent with the Department's position that the Five Reference Streams are "least impacted in the region," a status to be distinguished from the requirement that streams be minimally impacted or in a nearly ideal state to qualify as reference streams. Ms. Espy does not believe that the SCI scores confirm that there is no impairment due to nutrients to the Four Reference Streams because "[t]he SCI isn't necessarily a tool that is used just to point out or indicate nutrient impairment." (Petitioners' Ex. 90, p. 23). Mr. Frydenborg's After-the-Fact Efforts Mr. Frydenborg visited the Nine Northern Tributaries in order to collect data for purposes of supporting the Proposed TMDL after the Proposed Rule was published and challenged by Petitioners. The collection effort, as expected, revealed widespread hydrologic modification in the area of the Nine Northern Tributaries. The majority of the sites visited in the area had unacceptable, that is, "very low" (tr. 252) habitat scores. The habitat and the hydrology of the sites led Mr. Frydenborg to conclude that no matter what improvement was made to water quality with regard to TP, "you wouldn't get very good biological communities." Id. The only potential exception among the Nine Northern Tributaries is Mosquito Creek. Mosquito Creek Among the Nine Northern Tributaries, Mosquito Creek had the best habitat. Under a recalibrated Stream Condition Index ("the New SCI"), conducted by the Department, it scored a 102, just below the threshold level of 105 that is considered optimal. The scores for the other Nine Northern Tributaries ranged from 21 to 69. Mosquito Creek also enjoyed the best hydrologic score ("7") while the others all scored 9 or 10, indicating that the others enjoyed very few natural hydroperiods but rather suffered with impaired hydroperiods, "completely human-controlled." (Tr. 253) Mr. Frydenborg's assessment of Mosquito Creek does not square precisely with an earlier assessment conducted by the Department in 1999 and summarized in Petitioners' Ex. 25. Petitioners' Exhibit 25 is an Ecosummary of Mosquito Creek prepared by the Department's Southeast District's Assessment and Monitoring Program. Issued in September of 1999, it describes Mosquito Creek in much the same way as Mr. Frydenborg at hearing but with a few differences: Despite water quality problems, the creek has beautiful stretches with luxurious aquatic and riparian vegetation and an extensive and populous benthic invertebrate community, all thriving on the excessive nutrient load. Native vegetation such as maple, cypress, willow, and oak dominate the canopy while noxious and rank growths of exotics (water hyacinth, water lettuce, wild taro, and pepper trees) clog the water surface and understory. A diverse assemblage of aquatic insects, worms, and mollusks utilize the nutrient enriched water. Petitioners' Ex. 25, 1st page (emphasis added). The exhibit refers to the historical use of the watershed for dairy and beef cattle production. Although data was limited, the exhibit reflected the finding that "water quality in the creek appears to be improving." Id. This was attributed to best management practices and changes in land use away from dairy and beef cattle production. "Nevertheless," the document states, "water quality continues to be poor." Id. From 1992 to 1998, TP averaged 0.728 mg/l, or over seven times what an acceptable limit might be . . . ." Id. The document describes "Type II Error" that occurs with regard to environmental assessments: Contrary to its obvious water quality impairment (which includes very high phosphorus and nitrogen nutrient concentrations and chronically low dissolved oxygen), Mosquito Creek scored very highly (33 or "excellent") during a 1994 biological dipnet macroinvertebrate assessment using FDEP's SCI method. This misleading evaluation may have occurred due to the good habitat and flow present at the Mosquito Creek site, and illustrates the potential danger of employing "cookie-cutter" environmental assessment approaches. An incorrect assessment such as this is called a "Type II Error" wherein a polluted stream is deemed to be in "excellent" condition. * * * Failure to avoid "Type II Error" may result in a false public perception about the true condition of a polluted waterway. Petitioners' Ex. 25, 2nd page. The exhibit further warns of the effects of the excessive nutrient loading in the creek on Lake Okeechobee: Although Mosquito Creek is but a small tributary to Lake Okeechobee, many such sources combine to exacerbate the Lake's problems. Heavy loads of nutrients have resulted in massive algal blooms which can deplete dissolved oxygen levels and cause Id. fishkills. The type of algae that make up these blooms can include those which produce toxins. These Harmful Algal Blooms (HABs) can sicken, kill, and even be carcinogenic to a wide variety of organism. The exhibit, as far as its attribution of Type II error to the assessment of Mosquito Creek as "excellent" was dismissed by the Department at hearing. The exhibit was authored by a chemist who "has not passed the stream condition audit". It failed in Mr. Frydenborg's view to consider, moreover, that excessive nutrient loading may not cause poor biological health when there are other factors that would allow biological health despite excessive nutrients such as shading and the darkness of the water that would prevent the penetration of light. The exhibit pointed to other indicators of poor biological health, that in the opinion of the author of Petitioners' Exhibit 25 were overlooked: While the macroinvertebrate fauna collected from Mosquito Creek was diverse, it included many species tolerant to pollution that opportunistically exploited the conditions which pollution caused. Thus air-breathing taxa were common in Mosquito Creek (they can tolerate low dissolved oxygen). The exotic bivalve, Corbicula fluminea, was extremely abundant, but was under-reported by the dipnet method. This species thrives in areas receiving high nutrients, filtering abundant suspended organic materials that result from the over-growth of plants fertilized by runoff. Id. Whatever Mosquito Creek's status, the eight other tributaries among the Nine Northern Tributaries have major problems as all parties to this proceeding agree and as further described by Mr. Frydenborg at hearing. Problems Associated with the Nine Northern Tributaries A major problem for most of the Nine Northern Tributaries is that hydrologic modifications, such as ditching and draining, create a "spike in [the] hydrograph." Id. In rain events, they endure large influxes of water that cause turbulent flow and scouring to the stream system. The result is that the stream's ability to support benthic macroinvertebrate communities is severely reduced. At bottom, an improvement in TP concentrations for the Nine Northern Tributaries is not anticipated by the Department to lead to a normally-expected biological community because major improvements in stream habitat and hydrologic regime are also required. This expectation by the Department, however, is not supported by a Use Attainability Analysis. Use Attainability Analysis A "Use Attainability Analysis" was not done on the Nine Northern Tributaries to determine if they could attain Class III uses. A structured scientific assessment of the factors affecting the attainment of use, a Use Attainability Analysis has been adopted by the federal government. The Department conducted such an analysis of the Fenholloway River, polluted by a the point source of a pulp mill. But there was no evidence that the Department had conducted such an analysis on streams polluted by non-point sources as in the case of the Nine Northern Tributaries. Certainly, Mr. Frydenborg has never been involved in such an analysis. Without having conducted a Use Attainability Analysis, the Department nonetheless continues to anticipate that an improvement in TP concentrations in the Nine Northern Tributaries will not serve to attain Class III uses. DEP Reaction to the Rule Challenge The record does not reflect any response other than the SCI data provided by Ms. Espy to USEPA's request for "bio data that confirms that these are in fact reference sites, i.e., there is not impairment due to nutrients." When this Rule Challenge was filed at DOAH, however, Mr. Frydenborg was asked by Mr. Brooks to visit the sites of the Reference Streams and the Nine Northern Tributaries to "collect some additional data so that we had an objective evaluation . . . ." (Tr. 244) He visited the Nine Northern Tributaries and three of the Five Reference Streams in April of 2003. He was accompanied by Ms. Espy. They spent two days visiting all of the Nine Northern Tributaries but, according to Ms. Espy, we're only able to spend time at two of the reference streams and "drive-by . . . one other." (Petitioners' Ex. 90, p. 38). The reference streams not visited, according to Ms. Espy, were Fish Slough (this may be because Mr. Frydenborg knew from an earlier visit that it would not qualify as a reference stream in its present state, see Finding of Fact 165) and the Northwest Fork of the Loxahatchee. They drove by the North Fork of the Loxahatchee and actually spent time at Cypress Slough and Fort Drum Creek. Mr. Frydenborg, whether with Ms. Espy or not, did visit Fish Slough at some point. (It may be inferred from his testimony that he saw Fish Slough on the April 15-16, 2003 visit.) He was asked about it in the context of the April 15, 2003, trips taken by him and Ms. Espy: Q [C]an you describe what you saw when you visited the reference streams? A Well, when I went to Fish Slough, I immediately determined that it is not a reference site currently. It had a completely channelized system with [no] riparian zone. There were exotic plants in the water. I believe there was hydrilla. . . . I would not characterize the condition of Fish Slough as a reference community today. Gary Ritter [of the water management district] . . . was along with me. I said, "Gary, this is a bad reference site," and he said, "Well, there have been some changes in the basin around 1995," and I believe that the Department used pre-1995 data for that site because it currently would not qualify as a reference site. (Tr. 263-264) In apparent reliance on Mr. Ritter's statement and its interpretation of the statement, the Department used pre- 1995 data for Fish Slough in the calculations for the derivation of the Proposed TMDL. This is noted in the report issued by the Department through its Watershed Assessment Section on September 16, 2003. The report introduced into the record by Petitioners, describes its purpose as "[to] represent[] the efforts to develop a . . . TMDL for . . . TO for impaired waterbodies within the Lake Okeechobee Basin " Petitioners' Ex. 2, pg. 1. With regard to the present status of Fish Slough as not an appropriate reference stream the report states, It should be noted that the entire data record was not used for each station. For Fish Slough, which is within the Lake Okeechobee Watershed and which has a similar soil and topography there were phosphorus data back to 1986. However, land use changes and increased agricultural activity in the watershed since 1996 have led to the concern that Fish Slough may no longer be suitable as a reference site. For this reason, only the Fish Slough data for 1986- 1995 were used to determine the TP target. Using this shorter period of record, there were 490 TP samples for these five streams and the 75th percentile value for TP is 0.159 mg/L. Petitioners' Ex. 2, p. 4, emphasis added. The decision to accept Fish Slough as a reference stream prior to 1996 was made on the basis of Mr. Ritter's statement and the suggestion of Kim Shugar, who, like Mr. Ritter, has been involved in water quality restoration work in South Florida. Neither Mr. Ritter nor Ms. Shugar testified at hearing, however, as to the basis of their belief. Nor with one exception is there any evidence of record that Fish Slough was a reference stream prior to 1996. That exception is the following testimony of Mr. Frydenborg: Well, I did the habitat and the hydrologic index, and, interestingly, the LDI, the Landscape Development Intensity Index I believe was around 2.2 for Fish Slough, and that data that we have that's a complete data set for the State of Florida was like 1996 data. So I guess that is an independent way of confirming that at that point there was a relatively benign land use at Fish Slough ... See Respondent's Proposed Recommended Order, para. 91, p. 34. Otherwise, Mr. Frydenborg disclaimed any knowledge of whether Fish Slough would have qualified as a reference stream prior to 1996: "I really don't have the knowledge to be able to tell you what it [Fish Slough] was like before 1995 " (Tr. 267) Without doubt, however, it is "not an acceptable reference site today . . . ." Id. Infested with exotic plants such as hydrilla, Fish Slough, is a completely channelized system with no riparian zone. At Cypress Slough and Fort Drum Creek, Mr. Frydenborg and Ms. Espy "walked the system probably 200 or 300 meters down from the road crossing and then [conducted] a 100-meter stretch assessment within that." (Petitioners' Ex. 90, p. 39). The 100-meter stretch assessment was described at hearing by Mr. Frydenborg: You pull a tape measure out and you flag the site every ten meters so you can get an accurate map of the habitats, and then you do a series of evaluations. There's eight procedures that you go through for the habitat assessments. (Tr. 245) The procedures which measure "habitat parameters" (see Department Exs. 7 and 9) include an examination of substrate diversity and substrate availability. Substrate in Florida are "snags, leaf packs, root materials, aquatic vegetation" (id.) and may include limestone rock. The habitat parameters also include an examination of water velocity, habitat smothering (affects of sand or silt accumulation), the degree of artificial channelization, bank stability, riparian zone buffer, and riparian zone vegetation. The vegetation in a riparian zone is crucial to a stream's trophic system, particularly its leaf litter fall. The contribution by leaf-producing organisms in the riparian zone to stream habitat was stressed by Mr. Frydenborg at hearing: (Tr. 248) They shed their leaves periodically, and that's a very important source of habitat because organisms . . . live in those leaf packs, and [they are] also a source of organic matter that is naturally found in the systems . . . . [O]rganisms . . . called shredders . . . move in and cut . . . the leaf litter into smaller pieces and produce usable organic matter that then ... [serves] the whole community[.] [At] the base of the food web . . . the organisms . . . eat the native algae . . . the diatoms . . . the leaf litter[.] [For] aquatic macrophytes or aquatic plants in the system, [its] a source of organic production . . . used as food throughout . . . the trophic system[.] . . . [I]t is [the source of] energy [that] moves from one level to the next [within healthy stream habitat] . . . . In addition to the eight procedures for habitat assessment, Mr. Frydenborg also calculated a hydrologic modification score on a form he developed as an off-shoot of USEPA's Human Disturbance Gradient. The form had been used in the recalibration of the Old SCI that led to the New SCI. See Finding of Fact 171 below. The calculation revealed "widespread hydrologic modification in that northeastern tributary area" (tr. 251) the area of the Nine Northern Tributaries. Optimum habitat scores are in excess of 105. Eight of the Nine Northern Tributaries had scores below 69, "unacceptable habitat scores, very low." (Tr. 252) The exception with the highest score was Mosquito Creek. With regard to the Reference Streams, no SCI scores were calculated on the April, 2003 trip. No samples of the reference streams were taken because Mr. Frydenborg and Ms. Espy "didn't feel there would be sufficient time before the hearing was scheduled" (Petitioners' Ex. 90, p. 42) to analyze any such samples. Instead, Mr. Frydenborg and Ms. Espy, as they had done with regard to the Nine Northern Tributaries conducted "habitat assessment and hydrologic scoring" (tr. 261) for the two Reference Streams they visited: Fort Drum Creek and Cypress Slough. The scores for the two are found on Department Exhibit The exhibit consists of three documents for each of the Reference Streams: a "Stream/River Habitat Sketch Sheet," a "Physical/Chemical Characterization Field Sheet," and a "Stream/River Habitat Assessment Field Sheet." See Department Ex. 9. The latter sheet scores the stream on the eight habitat parameters that are included in the habitat assessment. Fort Drum Creek received a hydrologic score of five, "in [the] moderate range of disturbance . . . ." (Tr. 264) Its habitat score was "125." The Stream/River Habitat Assessment Field Sheet has four categories for each habitat parameter. They are "Optimal," "Suboptimal," "Marginal" and "Poor." The creek received optimal scores in four of them: habitat smothering, artificial channelization, riparian buffer zone width and riparian zone vegetation quality. It received suboptimal scores in three habitat parameters: substrate diversity, water velocity, and bank stability and a marginal score in substrate availability which indicates that the creek has only "6% to 15% productive habitat". Department's Ex. 9, p. 3. Cypress Slough received a slightly higher score of 127. Although it had only a marginal score of "8" in substrate availability indicating something less than 15% of productive habitat, Mr. Frydenborg described the segment of the slough in which the assessment was made as a "tropical paradise . . . [with] a beautiful riparian zone [and] nice habitats." (tr. 266) The description matches the maximum optimal scores Cypress Slough received for artificial channelization, bank stability, riparian buffer zone width and riparian zone vegetation quality. With regard to the three other habitat parameters, substrate diversity, water velocity and habitat smothering, the slough received suboptimal scores. Assessments were not taken at the Northwest and North Forks of the Loxahatchee because eight previous samplings had been taken that produced data for habitat assessment and hydrologic scoring had been done of them during the recalibration process of the SCI. In the end, the Department was satisfied with the Reference Streams used for purposes of data in calculating the 75th percentile of TP because of two reasons: (1) their high 1996 Stream Condition Index Scores and (2) their proximity to the Lake Okeechobee basin. In the Department's view, the Proposed TMDL should protect the Nine Northern Tributaries from imbalance "because that is what is represented in the reference site population data." (Tr. 270) That view was confirmed for the Department by three analyses that Mr. Frydenborg conducted after the Proposed TMDL was challenged by Petitioners. The first analysis used cases "where there was an SCI score of good, and in conjunction with [that], on that day, a total phosphorus of greater than 159 . . . ." (Tr. 134) Out of a total of 629 scores available, only 7 qualified in the analysis. Dr. Boyer, Petitioners' expert witness, explained that the analysis was scientifically invalid because it ignored the high variability of phosphorus data over time, ignored the existence of additional SCI scores (New SCI scores) for the same streams in which the streams received only "fair" or "poor" assessments, and ignored the existence of data showing that there was only one stream that had a phosphorus reading of over 159 ppb which also had a consistent New SCI scores of "good." As Dr. Boyer explained: [T]his site is Little Orange [Creek] . . . . [I]t also has TP values of 29 and 39 on different days. There is a lot of variability in the data. So to come to the conclusion that this site is good because on one day it had a high TO and it scored good is invalid . . . . (Tr. 137) The second analysis was a regression analysis, a statistical tool, that showed no relationship between total phosphorus and biological health of a system. The Department again used an approach that employed only the phosphorus level on the day the SCI score was taken and not all the data over a period of time. The approach is invalid. It inappropriately uses point data rather than all available data. The third analysis examined all "good" SCI scores in the Peninsular Region that had a phosphorus reading the same day and took the 75th percentile of the phosphorus data. It then examined all "good" and "fair" SCI scores in the same region that had a phosphorus reading the same day and took the 75th Percentile of the phosphorus data. These two produced 75th percentiles of 243 ppb and 230 ppb. Dr. Boyer criticized the third analysis because "the text category . . . were not what's used of the new method [the New SCI]." (Tr. 146) Under the new method "it dropped several goods into the fair categories and several fairs into the poor category." Id. The analysis also suffered from point phosphorus data rather than all data available for a stream as required under the USEPA's 75th Percentile Method. The limitation of the data set, moreover, because of the point data used rather than all data, produced a result with a large confidence level that fell anywhere between 31 ppb and 441 ppb, hardly a confirmation of the Proposed TMDL. If one categorizes the streams according to their New SCI rating (good, fair, poor and very poor), and takes a mean of the phosphorus data, an entirely different conclusion is reached about the relationship between TP and biological health. The mean phosphorus for good systems is 31 ppb, for fair 88 ppb, for poor 141 ppb and very poor is 193 ppb. Maximum phosphorus for a good system would be 78 ppb. One concludes from this analysis that there is a definite relationship between TP and the health of a biological system. As Dr. Boyer put it, "you're not going to find a . . . system . . . that's consistently good that has high phosphorus." (Tr. 145) The New SCI assesses ten metrics of macroinvertebrate community health. The ten metrics "represent a category of biological attributes so that you can get the best holistic data set [for] an accurate evaluation of the biological community." (Tr. 302) The New SCI also is based on a Human Disturbance Gradient ("HDG"). At the end of the calculation, a stream falls into one of four categories: good, fair, poor or very poor. The scores span a scale from 1 to 100 with 100 being the best. A score of 73 and above qualifies a stream as "good." Of "[t]he sites that got zero on the Human Disturbance Gradient . . ., no observable type of human disturbance . . ., only about 25 percent . . . exceeded . . . 73 . . . ." The remainder fell into the fair category, an indication that a rating of "fair" may not indicate impairment, according to Mr. Frydenborg. Petitioners' Ex. 98, a publication of DEP's bearing a revision date of February 1, 2004, however, indicates otherwise in its description of the SCI category "Fair:" "Significantly different from natural conditions; 20-30% loss of Ephemeroptera, Trichoptera and long-lived taxa; 40% loss of clinger and sensitive taxa; percentage of very tolerant individuals double." Petitioners' Ex. 98, p. 21 of 32, (emphasis added). In addition to testifying about the reference streams, Mr. Frydenborg explained why the Department did not calculate a TMDL under the 25th Percentile Method recommended by the USEPA. The Department regarded the recommendation of that method as a disservice by the USEPA. "Disservice by the USEPA?" As discussed above, the Guidance Manual published by the USEPA suggests that in addition to the "75th Percentile Reference Stream Approach" that the Department should have also applied the 25th Percentile Method and compared the results as part of a comprehensive and protective "frequency distribution" methodology. After comparing the results from the two methods, USEPA recommends selecting the lower result in order to ensure that a TMDL is protective. The 25th Percentile Method was conducted by the USEPA in its Ecoregion XII, described in a document published in December of 2000 by the USEPA's Office of Water as encompassing "the southeast corner of Georgia (excluding the immediate coastline) and a large segment of central and Gulf of Mexico coastal Florida." See Petitioners' Ex. 17, p. 7. This Ecoregion is primarily north of Ecoregion XIII, which is the Southern Florida Coastal Plain. Maps in the document show that Lake Okeechobee is in Ecoregion XIII, but the Nine Northern Tributaries are located in Ecoregion XII. Ecoregion XII contains a sub-ecoregion, sub-ecoregion 75. Testimony at hearing indicated that the Nine Northern Tributaries are at the southernmost end of Sub-ecoregion 75. Employing the 25th Percentile Method, the reference conditions for both "aggregate Ecoregion XII streams" and "level III ecoregion 75 streams" with regard to total phosphorus were 40 ppb or 0.040 mg/L. See Petitioners' Ex. 17, Table 2 and 3, at pp 13 and 14, respectively. Also see id. "Executive Summary," pp. vi and (tr. 92). The concentration level of 40 ppb (or 40 micrograms per liter) produced by USEPA for streams in the Nine Northern Tributaries ecoregion using the 25th Percentile Method was rejected by the Department for purposes of proposing a TMDL for TP in the Nine Northern Tributaries. Despite the USEPA recommendation in the Guidance Document, the Department does not have faith in the 25th Percentile Method for establishing a level at which imbalance occurs. It views USEPA as having done a "huge disservice . . . to the states when they promulgated [the Guidance Document that recommends employment of the 25th Percentile Method]." (Tr. 286) At hearing, Mr. Frydenborg described the Department's view of the flaw in the 25th Percentile Method for establishing imbalance. In his words, the 25th Percentile Method takes, "sites of completely unknown quality - - they could all be excellent quality biologically, no imbalances whatsoever, and by arbitrarily selecting the lower 25th percentile, [it] automatically [makes] any site above that impaired with no evidence to support that there is actually imbalances of biological communities . . . ." (Tr. 286) While theoretically, the 25th Percentile Method could use streams with "excellent" biological quality, that is, streams that were impacted at most minimally, the description of the method in the Guidance Manual makes clear that the precise opposite is the case; the method will typically use streams that are degraded. The potential for degraded streams to be used by the 25th Percentile Method is precisely why the USEPA methodology that employs the 25th Percentile Method recommends that an even lower percentile, down to the fifth percentile, be considered for obtaining a nutrient value for setting a numeric criteria. The method in which one would expect only streams of excellent biological quality to be used is the 75th Percentile Method. This is why the 75th Percentile Method, in contrast to the 25th Percentile Method, is described by the USEPA as "the preferred method to establish a reference condition." Id. at A discussion of the comparison of the two indicates that while the 75th Percentile Method is preferred, the hope is that the two methods will produce similar values for a reference condition: EPA's Technical Guidance Manual for Developing Nutrient Criteria for Rivers and Streams describes two ways of establishing a reference condition. One method is to choose the upper 25th percentile (75th percentile [the 75th Percentile Method]) of a reference population of streams. This is the preferred method to establish a reference condition. The 75th percentile was chosen by EPA since it is likely associated with minimally impacted conditions, will be protective of designated uses, and provides management flexibility. When reference streams are not identified, the second method is to determine the lower 25th percentile of the population of all streams within a region [the 25th Percentile Method]. The 25th percentile of the entire population was chosen by EPA to represent a surrogate for an actual reference population. Data analyses to date indicate the lower 25th percentile from an entire population roughly approximates the 75th percentile of the population for a reference population [citations to case studies in Minnesota and Tennessee omitted]. New York State has also presented evidence that the 25th percentile [method] and the 75th percentile [method] compare well based on user perceptions of water resources [citation omitted]. Id. This discussion also shows that values with a variance from 40 ppb (as produced by USEPA for the Ecoregion in which the Nine Northern Tributaries are located employing the 25th Percentile Method) and 159 ppb (produced by the Department in collaboration with USEPA in employing the 75th Percentile Method) are unexpected. It also explains why the USEPA in the Reference Stream Approach urges that when the values produced by the 75th Percentile Method and the 25th Percentile Method are at a sufficient variance that the lower, more protective, value be chosen for purposes of deriving a TMDL for a nutrient. A Numeric Value at Great Variance When a frequency distribution analysis produces a value that is at great variance with another frequency distribution analysis, it causes the scientific investigator to pause in progress toward the goal. Instead of attempting to proceed toward the ultimate goal of arriving at a numeric criterion, the next step for the investigator is to determine the cause for the variance between the analyses. This is particularly true when the analysis with the higher value is at odds as well with other data, such as historical data. The step for determining the basis of the discrepancy between values produced by various analyses was described by Dr. Boyer at hearing when asked, "What would you do if you found one [a value] that was totally different from the others?" (Tr. 94) Dr. Boyer answered that it would require the scientific investigator to re-examine the result, "either the data are bad or [the] analysis is wrong," id., or the investigator did not account for some factor. While a result at great variance with other results would not necessarily mean that the result was inaccurate, it is a "red flag," id., that requires re-examination. The high value in the Proposed TMDL is indeed a "red flag." It calls into question the streams chosen by the Department as reference streams for the 75th Percentile Method. The legitimacy of the reference status of the streams chosen by the Department was cast into further doubt by the testimony of Petitioners' witness whose fields of expertise include water quality analysis relating to nutrient loading: Jean Marie Boyer, Ph.D. Dr. Boyer's Testimony As referenced above, Fish Slough, at the time of hearing, would not have qualified as a reference stream because of impacts. Whether it was one or not prior to 1996, the end date for Fish Slough data used by the Department for derivation of the Proposed TMDL, is less than clear from the record. The Department relied on statements from water management district personnel. None of those personnel testified at the hearing in this proceeding. There was no other evidence in the proceeding, documentary or otherwise, to support Fish Slough's reference stream status prior to 1996 aside from Mr. Frydenborg's reference to a LDI reading that exceeded the range into which a reference stream would have fallen. It is Dr. Boyer's opinion, moreover, that none of the Five Reference Stream supporting the Proposed TMDL are legitimate reference streams, in part, because of the scores received on the Old SCI and the New SCI. In her opinion, Cypress Slough, furthermore, is more than minimally-impacted so that it does not qualify as a reference stream. Located in the proximity of several dairy farms from which it receives direct drainage, Cypress Slough is "impacted and it is disturbed." (Tr. 102) When the initial SCI report was prepared it was not on the "preferenced stream list." Id. It is listed as "fair" on the New SCI with a modification score of 6. Fort Drum Creek is "less disturbed than Fish Slough or Cypress Slough" id., but still Dr. Boyer "wouldn't consider [Fort Drum Creek] minimally impacted . . . ." Among six RSCI scores, Fort Drum Creek received 5 "fairs" and 1 "good." It was explained at hearing, that a rating of "fair" on the New SCI does not necessarily mean that the stream is more than "minimally impacted." On the Land Development Index, however, Fort Drum Creek scores a 2.9, a number that is higher than "zero to two [which is] considered a good number for the Landscape Development Index." (Tr. 103) The LDI, therefore, indicates that Fort Drum Creek does not qualify as a reference stream. The Northwest Fork of the Loxahatchee (the "Northwest Fork") appears to be in pretty good shape" to Dr. Boyer, except that "there is development upstream." Id. Under the New SCI, the Northwest Fork is shown to be "in very poor shape." (Tr. 104) This is because its "macroinvertebrate community isn't in very good shape." Id. The North Fork of the Loxahatchee (the "North Fork") is in a state park and does not have development upstream but under the New SCI "it hasn't done very well . . . ." Id. Dr. Boyer's opinion, at least so far as three of the streams (Fish Slough, Cypress Slough, and Fort Drum Creek) are concerned, is supported by evidence of record that pre-dated the Proposed Rule and this challenge. A report dated May 31, 1996, that relates the development of the SCI, described as "a primary indicator of ecosystem health and to identify impairment with respect to the reference (or natural) condition" (Petitioners' Ex. 29, Executive Summary, p. 2) was admitted into evidence as Petitioners' Ex. 29. The report in Chapter 3 entitled the "Selection and Geographic Distribution of Reference Sites," id., p. 5, states: Reference stream sites have been sampled by FDEP since summer 1992, using standardized biological methods and habitat evaluations at each site. Reference sites were chosen to represent the least impaired streams throughout Florida. * * * FDEP sample reference streams in all nine subecoregions from 1992 to 1994. * * * For inclusion in the reference stream database, sites had to be wadeable (first- to-third order), meet reference criteria of minimal disturbance, and have a drainage within the subecoregion. Id. at 5-7. (Emphasis added) Twelve reference sites are listed from Subecoregion 75d, the subecoregion in which the Nine Northern Tributaries and the Five Reference Streams are located. Of the twelve, only two are any of the Five Reference Streams: the NW Fork the North Fork of the Loxahatchee River. See id. at 7-9. Dr. Boyer's opinion is also supported, at least in part, by the updated SCI, re-calibrated in 2004 (the "New SCI") referred to in Petitioners' Ex. 46B as the "New SCI." (The 1996 SCI is referred to as the "Old SCI.") Cypress Slough, in a modified state hydrology-wise, rated only "Fair" under the New SCI whereas it had an excellent rating under the Old SCI. Fort Drum Creek, in contrast to its scores in the "excellent" range under the Old SCI, had five "fair" scores, ranging from 53.0 to 59.9 under the New RSCI and only one "good "score" under the New SCI. Under the Old SCI, the Northwest Fork of the Loxahatchee received 14 "excellent" scores and 3 "good" scores. Under the New SCI, it received 2 "very poor" scores, 8 "poor scores" and 7 "fair" scores. It received no "good" scores based on 17 ratings. See Petitioners' Ex. 46B. A similar result, although not as dramatic as in the case of the Northwest Fork, applied to the North Fork of the Loxahatchee. Whereas it had received 8 scores of "excellent," 5 scores of "good" and only one of "poor" under the Old SCI, under the New SCI, it had 7 scores of "poor," 6 scores of "fair" and only one of "good." See id. Mr. Frydenborg did not conduct stream habitat assessments on the two forks of the Loxahatchee that served as reference streams because "[w]e were running out of time that day," (tr. 266) and because he felt he had sufficient data otherwise. The assertion is odd when one considers that Mr. Frydenborg and Ms. Espy conducted habitat assessments of all of the Nine Northern Tributaries, declared impaired by the Department. Dispatched to conduct habitat assessments in the wake of the challenge to the Proposed Rule, it seems that Mr. Frydenborg would have chosen to spend time on the Five Reference Streams rather than the Nine Northern Tributaries if time were an issue. Elaboration on Frydenborg Opinion It is Mr. Frydenborg's opinion that the Proposed TMDL is a valid number from the perspective of protection of the resources for a number of reasons. In his view, there "might be a potential issue with phosphorus when it gets above . . . 250 micrograms per liter . . . ." (Tr. 269) Nonetheless, he has observed levels of above 250 micrograms where no imbalance of flora and fauna occurred because of flow characteristics and prevention of light penetration by shading associated with canopy or dark water caused by tannins leaching from leaf litter. One such example is Flat Creek next to Torreya State Park. It always receives an "excellent" on the SCI and its phosphorus levels average 244. Another reason Mr. Frydenborg believes the Proposed TMDL to be protective is that "nutrients are so complicated. We don't have a real clear cause-and-effect relationship between . . . nutrient concentration in a stream . . . [and] imbalance." (Tr. 269) Mr. Frydenborg summed up his thoughts on the contribution that reducing phosphorus in the Nine Northern Tributaries would make: Well, I guess the better way to think of it would be is, if you were somehow magically able to reduce phosphorus in those areas to make it an exceedingly low amount . . . it's my professional opinion, due to the other modifications in those sites, with the exception of Mosquito Creek, that you would not see any improvements in biological health because they're already significantly stressed for these other factors. I think that's the best way to look at it . . . I'm not saying we shouldn't try our best to reduce the phosphorus in those systems . . . but . . . if we're able to reduce that phosphorus, I wouldn't expect to see an actual beneficial environmental effect. (Tr. 281-282) Mr. Frydenborg stressed that the Proposed TMDL is adequate because "it's similar to the reference conditions in that particular area." (Tr. 282), (emphasis added). Mr. Frydenborg also responded on behalf of the Department to Dr. Boyer's assertion that the 75th Percentile Approach required the use of reference streams identified in the 96 Stream Condition Index located in Sub-ecoregion 75D: the eastern flatwoods region that is on the eastern side of the state. This sub-ecoregion was described as "up in Orlando all the way south of Jacksonville, south of Clay County anyway, ... but only on the eastern side of the state." (Tr. 291) The Nine Northern Tributaries are located in the "very southern extent" of Sub-ecoregion 75D. South of them is another sub-region associated with the Everglades where there is "a paucity of streams . . . maybe even no natural streams . . . south of Lake Okeechobee for the original Stream Condition Index." (Tr. 292) "Non-metric multidimensional scaling" (tr. 290), a statistical tool, was used to analyze how predictive the sub- regions were in showing the differences in populations of the aquatic communities. Because of the lack of differences among certain sub-ecoregions, the analysis led to an aggregation of them with the result that the State could be divided into three bio-regions: "the Panhandle, the peninsula, and the northeast." Id. This analysis shows that there is no basis for using a particular sub-ecoregion. With respect to the water basin in which the Nine Northern Tributaries are located, "leav[ing] that immediate geographic basin for TMDL purposes" (id.) would lead to an evaluation of peninsular sites, that is, an evaluation of one of the three bioregions into which the State divides rather than an evaluation of any one sub-ecoregion. An evaluation of peninsular sites, is similar what the Department did in developing the TMDL for TP in the Nine Northern Tributaries. It took "the sites that are unimpaired in the new [re-calibrated] SCI and looked at the phosphorus levels there." Id. There are differences between the northern end of Sub-ecoregion 75 and the southern end climatologically. The main reason to reject limiting candidate streams for use in the Reference Stream Approach to those in Sub-ecoregion 75, however, is that it is more appropriate to use an aggregate of "the entire sub-region," that is, the Peninsula Bio-region. The bio- region includes the southern end of Sub-ecoregion 75 but does not include the northern end of Sub-ecoregion 75. The phosphorus levels of the peninsula, according to Mr. Frydenborg, have a 75th percentile of 243 ppb. Using Peninsular Florida streams to calculate a 75th percentile of TP contrasted dramatically with Dr. Boyer's approach. According to Dr. Boyer, the three approaches she recommended produced concentration levels of around 57 ppb ("historical" levels), 40 ppb (the 25th percentile of all reference streams in ecoregion XII) and 73.5 ppb (the 75th percentile of reference streams she chose in subecoregion 75d.12) Dr. Boyer would be comfortable with a "73.5 part" TMDL for TP in the Nine Northern Tributaries because of "the data behind it." (Tr. 126) Between Mr. Frydenborg's defense of the Proposed TMDL and Dr. Boyer's defense of 73.5 ppb using reference streams, there is no question that Dr. Boyer's is superior. Her use of reference streams in the same ecoregion as the Nine Northern Tributaries makes sense because those reference streams were minimally impacted. Mr. Frydenborg's attack on Dr. Boyer's choice of reference streams for the 75th Percentile Method shows a fundamental misunderstanding of the concept of reference streams. Mr. Frydenborg and the Department have chosen to use as reference streams, streams that are not minimally impacted but rather that are the least impacted in Peninsular Florida, an area heavily impacted when it comes to excess phosphorus. The Guidance Manual demonstrates that the Department either does not understand the type of streams to be used in the 75th Percentile Method and the 25th Percentile Methods or, for some reason, has confused them. The 75th Percentile Method uses reference streams, that is, streams that are minimally impacted or approximately ideal in natural biology. In contrast, in its employment of the 75th Percentile Method, the Department chose streams that were least impacted in a heavily impacted region. The 25th Percentile Method, on the other hand, uses streams that are both in reference and non-reference condition. Data from degraded streams may be used to calculate a proposed value under the latter method. The more degraded the streams and the greater the number of degraded streams used to produce data for the 25th Percentile Method, the lower that actual percentile used to propose a TMDL. If the data is from a sufficient number of degraded streams then the fifth percentile should be used to produce a TP value. In contrast, Mr. Frydenborg rejected the 25th Percentile Method because it might have used data from only excellent streams - streams the Department should have used in calculating the 75th percentile to propose a TMDL for TP in the Nine Northern Tributaries. In point of fact, the 25th Percentile Method, not designed to be limited to streams of excellent condition, would almost assuredly not use data confined to production from streams of excellent condition. The Lake Issue In enacting the Protection Statute, the Legislature directed that the Protection Program should be implemented through a variety of programs, that is, unlike the TMDL Act, the Protection Program should not be solely regulatory: This program shall be watershed-based, shall provide for consideration of all potential phosphorus sources, and shall include research and monitoring, development and implementation of best management practices, refinement of existing regulations, and structural and nonstructural projects, including public works. § 373.4595(1)(j), Fla. Stat. The intent of the Legislature that the approach of the Protection Program be a multi-faceted one is reiterated specifically with regard to phosphorus. Under the Protection Statute's subsection (3), entitled "LAKE OKEECHOBEE PROTECTION PROGRAM," which details the specifications for the implementation of the Protection Program, there is a specification with regard to phosphorus reduction: The Lake Okeechobee Watershed Phosphorus Control Program is designed to be a multifaceted approach to reducing phosphorus loads by improving the management of phosphorus sources within the Lake Okeechobee watershed through continued implementation of existing regulations and best management practices, development and implementation of improved best management practices, improvement and restoration of the hydrologic function of natural and managed systems, and utilization of alternative technologies fro nutrient reduction. The coordinating agencies shall facilitate the application of federal programs that offer opportunities for water quality treatment, including preservation, restoration, or creation of wetlands on agricultural lands. § 373.4595(3)(c), Fla. Stat. The Legislature made its intent clear that phosphorus reduction in the Lake is dependent on federal projects as well as the TMDL Program: It is the intent of the Legislature that the Lake Okeechobee Protection Program be developed and implemented in coordination with and, to the greatest extent practicable, through the implementation of the Restudy project components and other federal programs in order to maximize opportunities for the most efficient and timely expenditures of public funds. § 373.4595(1)(k), Fla. Stat. (emphasis added) These federal efforts include projects conducted by the United States Army Corps of Engineers. The Department's understanding from its reading of the Protection Statute is that it rely as much as possible on projects conducted by the United States Army Corp of Engineers in its efforts to reduce the phosphorus load in and to Lake Okeechobee. The Department's plan to reduce phosphorus loads, therefore, calls for reductions in phosphorus loading through TMDLs placed on the Nine Northern Tributaries and other tributaries to the Lake as well as through federal projects. Lake Okeechobee TMDL As a result of the 1999 Consent Decree between USEPA and Earthjustice, the Department established a TMDL for Lake Okeechobee in August, 2001. The TMDL set an "in-lake" target restoration goal of 40 ppb total phosphorus for Lake Okeechobee based upon an examination of "pre-impact" phosphorus concentration data. The data was from studies that used "chlorophyll a" as an indicator of algal biomass which in turn acted as a surrogate for excessive nutrient concentration, and studies that examined the algal response to in-lake phosphorus concentrations. Upon comparing the results of these analyses, the Department determined that the total annual phosphorus load that would meet the 40 ppb restoration goal was 140 metric tons (the "Lake Okeechobee TMDL"). The Lake Okeechobee TMDL includes 35 metric tons from atmospheric deposition. Excluding the 35 metric tons of atmospheric deposition load of total phosphorus leaves 105 metric tons as the maximum load that is allowed from surface water inflows into the lake. The September 16, 2003, report of the Department admitted into evidence as Petitioners' Exhibit 2 recognizes that the Proposed TMDL cannot be inconsistent with the Lake Okeechobee TMDL. It also claims that the Proposed TMDL is consistent with the Lake Okeechobee TMDL because the Proposed TMDL will only allow 19.05 metric tons of TP to enter the Lake, well below the 105 metric tons allowed from surface water inflows under the Lake Okeechobee TMDL : This TMDL is specifically designed to protect the designated uses of the water bodies within the S-191 watershed [the watershed in which the Nine Northern Tributaries are located]. However, the load from these water bodies, as tributaries to Lake Okeechobee, must also be consistent with the TP TMDL for Lake Okeechobee in order to be adequately protective of the designated uses of the lake. Based on the Lake Okeechobee TMDL documentation, the total load for water discharged to the lake from all tributaries must not exceed 105 tonnes [metric tons] on an annual average basis. To determine whether the concentration-based TMDL for the tributaries is consistent with the lake TMDL, the Department calculated the load from the tributaries using a concentration of 0.159 mg/L and an average discharge of 97,154 acre feet (the average flow for 1995- 2000). Using these numbers, the allowable load is 19.05 tonnes, which well below the allowable load to the lake. Petitioners' Ex. 2, pp. 6-7 In keeping with the legislative intent and the observations of the Department, the Proposed Rule requires that the Proposed TMDL be consistent with the TMDL for TP for Lake Okeechobee: "As tributaries to Lake Okeechobee, the load from these other waterbodies in the Lake Okeechobee Basin must also be consistent with the TP TMDL for Lake Okeechobee, above." Proposed Rule, Section (2)(b). Under the TMDL Act, allocations of load may be between sources or basins so that the burden of reduction may fall on one source or basin more than on another: The allocations may establish the maximum amount of the water pollutant from a given source or category of sources that may be discharged or released into the water body or water body segment in combination with other discharges or releases. Allocations may also be made to individual basins and sources or as a whole to all basins and sources or categories of sources of inflow to the water body or water body segments. Allocations shall be designed to attain water quality standards . . . . § 403.067(6)(b), Fla. Stat. (emphasis added). In an August 2001 report entitled "Total Maximum Daily Load for Total Phosphorus Lake Okeechobee, Florida," prepared by the Department and submitted to the USEPA, it was reported that a restoration target of 40 ppb TP for the lake was suggested by certain studies. After discussion of the "different analysis methods" that "all encompass the 40 ppb concentration target," the report states that "if 40 ppb is met at the eight pelagic13 stations (which represent the mid-lake) we can expect total phosphorus concentrations of below 40 ppb in the near-shore during certain years." Petitioners' Ex. 13, p. 32 of 53. Petitioners interpret this to be the setting by the Department of a restoration target of "40 ppb in-lake." Petitioners' Proposed Recommended Order, p. 50. The Department conceded during hearing that "you do, in fact, need to achieve an average of 40 ppb [inflow concentration into the lake]." (Testimony of Mr. Brooks, tr. 358). The Department argued vigorously, however, that the Proposed TMDL at 159 ppb does not necessarily violate a target restoration for the lake of 40 ppb or an average inflow concentration of 40 ppb. This is because future treatment works, in the words of Mr. Brooks, "are going to, in fact, affect both concentration and volume delivered to the lake. Id. And depending upon where those go, those are going to have a very significant effect in terms of how you balance to achieve that overall 40." The issue is directly addressed by the Protection Statute. It requires the water management district in cooperation with other coordinating agencies and the United States Army Corps of Engineers to develop an implementation plan for Phase II of the Lake Okeechobee Construction Plan by January 1, 2004. See §.373.4595(3)(b)2., Fla. Stat. The implementation plan is required to: dentify Lake Okeechobee Construction Project facilities to be constructed to achieve a design objective of 40 parts per billion (ppb) for phosphorus measured as a long-term flow weighted average concentration, unless an allocation has been established pursuant to s. 403.067 for the Lake Okeechobee total maximum daily load. § 373.4595(3)(b)2.a., Fla. Stat. (emphasis added). Petitioners present evidence that the actual loading from the Nine Northern Tributaries would be 33.44 metric tons of TP per year because the Department's calculation failed to account for discharges from tributaries in certain sub-basins. Whether the annual load from the Nine Northern Tributaries is the higher number posited by Petitioners or the lower number of approximately 19 metric tons claimed by the Department, the load is substantially below the 105 allowed by the Existing Rule. Petitioners also claim that the Proposed TMDL, 159 ppb, almost four times the 40 ppb limit for average lake inflows, is invalid because it could not lawfully become effective until the Department has met its legal obligation to offset the Nine Northern Tributaries load with reductions from other sources so that the average load expressed as a concentration level meets the target of 40 ppb.
Findings Of Fact SFWMD is a public corporation and local sponsor for the federally authorized Central and Southern Florida Flood Control Project. As part of its duties as local sponsor, SFWMD operates eight pumping stations and six other structures all of which discharge into Lake Okeechobee. On August 26, 1977, SFWMD filed an application with DER for an operating permit for its inflow points into Lake Okeechobee. By mutual agreement, SFWMD and DER determined that there was insufficient data available to determine whether SFWMD qualified for an operating permit, therefore, DER proposed issuing a TOP. On November 22, 1978, DER issued its notice of intent to issue a TOP to SFWMD for its inflow points into Lake Okeechobee. Among the conditions contained in the TOP is that the permit will be effective for thirty (30) months. Petitioners complain that Lake Okeechobee is being environmentally damaged by the drainage into Lake Okeechobee of waters from surrounding agriculture and dairy farming areas. This, say the Petitioners, is causing the eutrophication or damaging enrichment of the Lake by the addition of chemical elements above their natural levels in that environment. DER and SFWMD contend that at least thirty (30) months is required to complete the testing and observation of the Lake and to make long-range plans for reduction of drainage into Lake Okeechobee and to develop necessary management alternatives to accomplish that goal. The proposed TOP provides a temporal framework. Within thirty (30) days of the issuance of the permit, SFWMD is required to present to DER a program for interim actions which will reduce nutrient loading during the time of the permit. Within 120 days of the issuance of the permit, SFWMD is required to submit for approval by DER a plan of study for determining the probable impacts of management alternatives for reducing the nutrient loading into Lake Okeechobee. Within twenty-four (24) months of the issuance of the permit, SFWMD is required to submit to DER an analysis of the impacts of each reasonable management alternative which will reduce the nutrient loading into Lake Okeechobee. During two successive rainy seasons SFWMD is required to do extensive chemical testing on site. After SFWMD submits its analysis of the impacts of management alternatives, DER has six months to review the data submitted and approve a schedule for implementing a plan to reduce nutrient loadings into Lake Okeechobee. Petitioners have submitted seven (7) Proposed Findings of Fact, five of which are hereby adopted in this Recommended Order: Lake Okeechobee is in a eutrophic state and getting worse as a result of man's activities. Both state agencies charged with respon- sibility for protecting Lake Okeechobee have long recognized that the Lake is in a eutrophic state and is in need of relief. Both the DER and the SFWMD have recognized that backpumping contributes significantly to eutrophication. Since 1975, DER and SFWMD have known that backpumping is one cultural activity that should be and could be stopped or substan- tially reduced. (This proposed Finding of Fact was numbered 6 in Petitioners' pleading.) The durational provision of the TOP is linked to the addi- tional time the DER and SFWMD claim it will take to study ways to stop backpumping. Petitioners' Proposed Findings of Fact numbers 5 and 7 are hereby rejected for the following reasons. First Petitioners request a finding that "the state agencies have done nothing to reduce the amount of bad water backpumped into Lake Okeechobee." In fact DER and SFWMD have proposed the TOP with its temporal frame work and requirements of interim actions for reduction of backpumping. Petitioners also propose as a finding of fact that "the TOP's durational provision as drafted is unreasonable and arbitrary in not assuring immediate reductions in backpumping and therefore, should be redrafted to require such action." Petitioners have not supported this contention with substantial, competent evidence. In fact, the TOP provides that a plan for the reduction of nutrient loading be presented within thirty (30) days of the issuance of the TOP. Furthermore, the proposed finding of fact is outside the scope of the issues framed by the pleadings. The issue is whether the thirty (30) month durational provision of the TOP should be reduced to twelve (12) months and not whether the TOP provides for immediate reductions in backpumping. The reason for the issuance of the TOP in lieu of an operating permit is to allow SFWMD time to gather data, to assess impacts and to develop management alternatives for the control of nutrient and pollutant loadings. Although some biological and chemical data already exist, much of the information requested of SFWMD under the TOP is currently unavailable. Specifically, the TOP requires that numerical nutrient limits be established for each discharge point and that specific management alternatives be developed. Currently available data on backpumping reduction does not specifically detail how much reduction is feasible nor what alternatives are soundest environmentally. Existing reports dealing with backpumping into Lake Okeechobee are not specific enough to support presently implementable management alternatives. Petitioners introduced no evidence to establish that the budgetary or manpower constraints with which SFWMD must deal would allow a reduction of the durational provision of the TOP from thirty (30) months to twelve (12) months. SFWMD's witnesses, however, established that if SFWMD were required to complete the study within one year, it would be economically impossible unless money and personnel earmarked for other important projects were tapped. Not only would the instant studies suffer a decline in quality but other equally pressing environmental studies would be jeopardized.
The Issue The issues for determination in this case are: 1) whether the Department of Environmental Protection (DEP) has dredge and fill permitting jurisdiction over a certain body of water known as Lake Blake in Okaloosa County, Florida; 2) if DEP's dredge and fill permitting jurisdiction is established, whether Respondents qualify for an exemption from DEP's dredge and fill permitting jurisdiction; and 3) if not otherwise exempt from DEP's dredge and fill permitting jurisdiction, whether Respondents are guilty of the violations alleged in the Notice of Violation and Orders for Corrective Action issued by the Director of District Management for the Office of the DEP Northwest District on May 13, 2003.
Findings Of Fact Parties The Department of Environmental Protection (DEP) is the agency of the State of Florida vested with the power and duty to enforce the provisions of Chapters 373 and 403, Florida Statutes, and the rules promulgated in Chapter 62, Florida Administrative Code. DEP is the only agency involved in these proceedings. Respondent, Santa Rosa Three, Inc. (the Corporation), is the fee simple title holder of certain property in unincorporated Okaloosa County, Florida, located between Lewis Street and Clifford Street in Sections 2 and 3, Township 2 South, Range West. The property includes the subject water body, Lake Blake. Santa Rosa II, Inc., is a corporate predecessor in interest to the Corporation. Respondent, Lee Maddan (Maddan), is a long-time resident of Okaloosa County. Maddan is the Petitioner in DOAH Case No. 03-1499. Maddan has personally observed activities occurring at the Lake Blake property for more than 38 years, including the excavation of the lake. Maddan holds equitable title to the Lake Blake property and is in the process of purchasing the fee simple title to the property from the Corporation. Maddan is and was at all material times hereto authorized by the Corporation to enter upon the Lake Blake property, to proceed to develop the land, to obtain permits in his name, and to do other acts to prepare the property for Maddan's purchase. History of Lake Blake Lake Blake is an artificially-created water body in unincorporated Okaloosa County, having a water surface area slightly less than six acres. There is a small island in the center of the lake. The property surrounding Lake Blake presently consists of both uplands and wetlands. No other water body is visible from Lake Blake. For DEP jurisdictional determination purposes, Lake Blake is located in the Northwest District of Florida. The oldest records of the Lake Blake property dating to 1826, indicate that the property was flat land with natural vegetation dominated by palmetto and galberry. The property historically had no flowing streams. In the 1950's, the then owner of the property began excavating a borrow pit on the property. The excavations continued until approximately 1979. As the borrow pit excavations continued, a lake formed due to the intrusion of underground water as well as collected rainfall. During the excavation period, and until approximately 1976, the land around the borrow pit was primarily pasture land with no trees or other vegetation. Up to 1976, there was no wetland vegetation growing on the property. Prior to 1960, the natural stormwater flow from the property was to the southwest toward Cinco Bayou, a defined water of the State of Florida which on a direct line is located approximately one-quarter mile from the property. Cinco Bayou is the nearest surface waters of the State of Florida. During the 1960's, a road known as Lewis Street (also known as Mayflower Avenue) was constructed along the southern boundary of the property. At the time of the construction of Lewis Street, the borrow pit was separated into two parts, an eastern and western section. A concrete culvert divided the sections of the borrow pit. At the time of the Lewis Street construction, a stormwater discharge pipe was installed by Okaloosa County and excess water flowed out of the borrow pit only at certain times in direct response to rainfall. The installation of the stormwater discharge pipe on Lewis Street was intended to drain excess rainfall from the borrow pit. Okaloosa County never acquired ownership of the borrow pit for use as a stormwater retention pond. The water body that formed in the borrow pit would come to be called Lewis Street Pond, or Blake Lake, and eventually Lake Blake. The natural flow of the stormwater from the property was further altered in the 1970's when a public elementary school was constructed by Okaloosa County on Lewis Street. The public school is located between the property and Cinco Bayou. Borrow pit operations formally ceased in September of 1980 when DEP's predecessor agency, the Department of Environmental Regulation (DER), entered an order requiring the cessation of mining operations. The physical operations had actually ceased a few years before the DER order. Lake Blake resulted from collected rainfall, as well as underground water intrusion in the original borrow pit. At the present time, additional diverted stormwater runoff collects in the lake as a result of Okaloosa County's stormwater drainage system. Lake Blake today is an artificial body of water owned entirely by one person. Residential housing is located on property surrounding Lake Blake. The lake is occasionally utilized for recreational purposes, including fishing. The property surrounding the lake is not open to the general public, and the entrances to the property are fenced. For purposes of this proceeding, there are no threatened or endangered plants on the property. Okaloosa County Stormwater Drainage System Okaloosa County has constructed a stormwater drainage system that runs through the Lake Blake drainage area. As part of this stormwater drainage system, Lake Blake collects diverted stormwater discharge from surrounding areas which have been previously developed. Residential neighborhoods are close to the area, specifically the Berkshire Woods Subdivision. Indeed, as a condition for the development of the Berkshire Woods Subdivision in 1976, the Okaloosa County Planning Commission required that former owner, Ron Blake, excavate the lake and make it ready for stormwater drainage from the proposed development of the Berkshire Woods Subdivision. In addition to the residential areas and the public school to the south, there is a private school to the north across the road on Clifford Street which also diverts water to the lake from its campus and parking lots. Okaloosa County has installed at least seven pipes which carry stormwater from the surrounding developed areas into Lake Blake. The only drainage out of Lake Blake is via the stormwater discharge pipe located at the southern boundary of the property on Lewis Street which was installed by Okaloosa County in the 1960's. Okaloosa County's stormwater discharge system serving Lake Blake is integrated into a series of interconnecting underground stormwater pipes which route the flow of the water for approximately one-half mile before ultimately discharging water into Cinco Bayou. Okaloosa County's stormwater discharge system which ultimately connects Lake Blake with Cinco Bayou is composed of buried pipes. DEP considers buried pipes or culverts which convey stormwater as excavated water bodies. The installation of Okaloosa County's stormwater discharge system required the excavation of land. Under DEP's interpretation of its rules, specifically Rule 62-312.030(2), Florida Administrative Code, the underground installation of stormwater pipes is sufficient to establish a series of excavated water bodies which connect Lake Blake to Cinco Bayou. Prior to the installation of Okaloosa County's stormwater discharge pipe on Lewis Street in the 1960's, there was no dredge and fill permitting jurisdiction which applied to the property containing Lake Blake. The stormwater discharge pipe has continuously existed on the southern boundary of the property since its installation in the 1960's to the present. Lake Blake was not originally designed, constructed nor permitted as a stormwater treatment or retention pond. Lake Blake incidentally resulted from the borrow pit excavations. Okaloosa County, however, has at least since 1976, utilized Lake Blake as part of its stormwater drainage system. Okaloosa County never acquired title to Lake Blake for use as part of its existing stormwater drainage system. In 1981, the Okaloosa County Board of Commissioners (who were not the owners of the property) applied for, and were issued by DER, a Construction Permit (No. RC-46-80-2031, dated May 27, 1981, which expired November 27, 1981) for "Blake Lake Modifications" which permit stated it was "to modify an existing stormwater drainage system." This permit allowed for, among other items, construction of "two earthen berms in Blake Lake" and "the diversion of lake flow from the western lake to the eastern lake." Although attempts were made to construct the two earthen berms, due to the white clay composition of the soil the berms were not successfully established. In 1984, DER issued another Construction Permit (No. 460853421 dated August 20, 1984, which expired August 15, 1987) to the Okaloosa County Board of Commissioners (who again were not the owners of the property) for the purpose constructing "two drainage channels . . . from a berm separating East and West Blake Lake." The drainage channels were thereafter completed and the east and west portions of the lake were eventually connected. On August 14, 1984, Okaloosa County also filed a Notice of New Stormwater Discharge with DER which proposed a re-routing of an existing stormwater drainage system which then diverted stormwater from the Candlewood Subdivision and Navy Street into Lake Blake. The stated purpose of the re-routing of the stormwater drainage system away from Lake Blake was to address flooding problems in the Candlewood Subdivision. By letter dated August 21, 1984, DER informed Okaloosa County that "the stormwater discharge is exempt from stormwater permitting requirements of the Department pursuant to Florida Administrative Code Rule 17-25.03(2)(c)." DER came to this conclusion in 1984 because the proposed project was "the modification of an existing County stormwater management system not serving a new development or increasing pollution loading." Although Lake Blake was utilized by Okaloosa County as part of the existing Okaloosa County stormwater drainage system, which in 1984 qualified for a DER stormwater permitting exemption, nothing pertaining to this stormwater permitting exemption supports a finding that Lake Blake was originally constructed, permitted or designed solely for the purpose of stormwater treatment so as to qualify for an exemption from DEP's dredge and fill jurisdiction under Rule 62-312.050(4), Florida Administrative Code. Dredge and Fill Permitting Jurisdiction Prior to the installation of Okaloosa County's stormwater discharge pipes on the property in the 1960's, there was no dredge and fill permitting jurisdiction which applied to the property and Lake Blake. Under current law, the Northwest District of Florida is governed by separate jurisdictional determination provisions. In order to initially establish DEP's dredge and fill permitting jurisdiction over wetlands and surface waters in the Northwest District, DEP must demonstrate that the wetlands and surface waters are connected to the surface waters of the State. Since 1995, isolated wetlands in all of the rest of the State of Florida are regulated by DEP without regard to any connection to the surface waters of the State. In the Northwest District under Rule 62-312.030(2), Florida Administrative Code, "surface waters of the state are those waters listed below and excavated water bodies, except for those exempted by Section 62-312.050(4), F.A.C., which connect directly or via an excavated water body or series of excavated water bodies . . ." to waters of the State. Under Rule 62- 312.045, Florida Administrative Code, however, "[i]solated wetlands that infrequently flow or otherwise exchange water with a described water body are not intended to be included within the dredge and fill jurisdiction of the Department." By letter dated April 24, 2001, DEP advised Santa Rosa II, Inc., that the Lake Blake property was not subject to DEP's dredge and fill jurisdiction. The letter was sent in response to an application seeking to fill 2.5 acres of the southeastern portion of the lake for the construction of an apartment complex. The letter was issued by DEP's Northwest District, and signed by Martin Gawronski on behalf of Larry O'Donnell, the Environmental Manager for Permitting Section of the Northwest District. The letter was issued after a visit to the property by one or more DEP employees, and based on an informal determination that Lake Blake was not connected to the waters of the State. In May of 2001, the United States Army Corps of Engineers determined that the Lake Blake property was not within its jurisdiction. Subsequent to the issuance of the April 24, 2001, non- jurisdictional letter, certain employees of Okaloosa County (not specifically named in these proceedings) contacted DEP seeking reconsideration of DEP's decision. These Okaloosa County employees thereafter met with DEP employees at the property and communicated by telephone with DEP employees while DEP considered a re-determination of its non-jurisdictional decision. The property owners were then notified that DEP was in the process of re-evaluating its non-jurisdictional decision. By letter dated October 24, 2001, DEP advised Santa Rosa II, Inc., that DEP had made a "correction" to the letter of April 24, 2001, and had determined that the property was in fact subject to DEP's dredge and fill permitting jurisdiction, because the "pond" was "connected to jurisdictional waters" of the State. The October 24, 2001, letter, like the previous letter, was issued from DEP's Northwest District and signed by Martin Gawronski on behalf of Larry O'Donnell. Between April 24, 2001, and October 24, 2001, there were no man-made alterations made to the Lake Blake property. Between March and April 2002, Maddan filled in a portion of the property and the lacustrine wetland. Maddan also built two pedestrian footbridges over the lake to the small island in the middle of the lake. DEP asserted its dredge and fill permitting jurisdiction based upon the existence of a series of underground pipes installed by Okaloosa County as part of its stormwater drainage system that conveys excess stormwater from Lake Blake to Cinco Bayou. Installation of the underground pipes required excavation. Neither the April 24, 2001, letter, nor the subsequent October 24, 2001 letter issued by the Northwest District, is binding determination of DEP's dredge and fill permitting jurisdiction over the wetlands and surface waters of Lake Blake. The authority to make a binding DEP dredge and fill permitting jurisdictional determination is vested in Dr. John Tobe, Environmental Administrator of the Wetland Evaluation and Delineation Section and his staff. DEP's Site Inspections/Jurisdictional Determination In April of 2002, Stacy Owens, DEP Environmental Specialist, received a telephone call from Chuck Bonta with the Okaloosa County Code Enforcement Department, and an unnamed homeowner, complaining that Lee Maddan had built two unpermitted pedestrian footbridges at Lake Blake and was also filling in part of Lake Blake. Ms. Owens initially investigated whether DEP had issued any permits for the placement of fill in Lake Blake or the surrounding wetlands, and determined that no permits had been issued. Ms. Owens further discovered that a prior Notice of Violation and Orders for Corrective Action had been issued by DER in 1980 against the Okaloosa County Board of Commissioners and Lloyd D. Junger (a lessor conducting mining operations). The 1980 case pertained to the discharge of turbidities from the Lewis Street Pond into Cinco Bayou. A final order in that case was entered on January 5, 1981, requiring Okaloosa County to make payment to DER and take corrective action. On April 23, 2002, Ms. Owens followed up on these complaints by performing a site visit to Lake Blake. At this time Ms. Owens observed two unpermitted pedestrian footbridges, unpermitted fill in a finger of Lake Blake, and unpermitted fill within a 20-foot by 25-foot lacustrine wetland area. On April 25, 2002, Maddan came to Ms. Owens' office to discuss whether permits were necessary for the placement of fill at Lake Blake. At that time, Maddan showed Ms. Owens the previous letters of April 24, 2001, and October 24, 2001, which had been sent from the Northwest District of DEP. Maddan stated that in his opinion no dredge and fill permit was needed because Lake Blake was not within the jurisdiction of DEP. Ms. Owens was then informed by employees of Okaloosa County that there were underground pipes connecting Lake Blake to Cinco Bayou. She obtained from Gary Bogan of Okaloosa County, an aerial map of the drainage area for Lake Blake which identified the location of the culvert on Lewis Street which conveys excess flow from Lake Blake to Cinco Bayou. On April 30, 2002, Ms. Owens performed another site inspection at Lake Blake. During this site inspection, she tracked the connection from Lake Blake to Cinco Bayou by personal observation. After her second site inspection, Ms. Owens e-mailed her findings to Dr. Tobe, and inquired whether the underground pipes satisfied the DEP requirements for connection to a water body of the State for the purpose of establishing DEP's dredge and fill permitting jurisdiction. Dr. Tobe replied to Ms. Owens that an underground pipe connection would satisfy DEP's dredge and fill jurisdictional requirements. On June 25, 2002, Dr. Tobe, Ms. Owens, and a DEP wetland delineation team visited the Lake Blake property for the purpose of making a jurisdictional determination. Maddan also accompanied Dr. Tobe and his team on the day of the site inspection. As a result of this inspection, Dr. Tobe completed and filed a Field Report for Lake Blake, Okaloosa County, dated June 25, 2002. As indicated in his Field Report, Dr. Tobe and his wetland delineation team determined that for jurisdictional purposes, Lake Blake was connected to the waters of the State by reason of the culvert on Lewis Street that ultimately discharges into Cinco Bayou. At the time of his inspection on June 22, 2002, Dr. Tobe did not observe water flowing from Lake Blake into the Lewis Street culvert. Dr. Tobe attributed this to an abnormal drought conditions the area was then experiencing. Maddan, who has observed this area for many years, testified that the lake was near or only slightly less than its normal water level on that date. Dr. Tobe conducted a further examination of the area to determine the ordinary high water line, and concluded that Lake Blake would at ordinary high water level flow into the Lewis Street culvert on a sufficiently regular frequency into Cinco Bayou, a water body of the State, for purposes of establishing DEP's dredge and fill jurisdiction. In determining whether water exchange frequency is sufficient to establish jurisdiction, there is a DEP Interoffice Memorandum of October 31, 1988, setting out 25-year, 24-hour criteria which is used as guidance, but the criteria set in this Memorandum have not been adopted as a rule, and are not singularly determinative of DEP's jurisdiction. At this time, Dr. Tobe and his team also performed a wetland boundary delineation. Dr. Tobe found hydric soils and wetland plants dominating the area. The wetland delineation boundary was determined by the continual interpretation of vegetation, soils, and hydrologic indicators. As a result of his inspection and wetland boundary delineation, Dr. Tobe concluded that unpermitted fill had been placed within the surface waters of the State and in lacustrine wetland. Thereafter on July 18, 2002, DEP sent Maddan a Warning Letter (DF-SO-46-022) requesting that Maddan cease dredging, filling or construction activities at Lake Blake without obtaining a permit. Subsequent to DEP's sending Maddan the Warning Letter of July 18, 2002, Stacy Owens visited the Lake Blake site on numerous occasions beginning in October of 2002, and continuing through July of 2003. On most of these site visits, Ms. Owens observed water flowing from Lake Blake through the Lewis Street culvert. Ms. Owens documented water flowing from Lake Blake through the Lewis Street culvert on October 29, 2002, November 5, 2002, May 20, 2003, June 20, 2003, June 23, 2003, June 27, 2003, and July 8, 2003. The area was not experiencing abnormally excessive rainfall events at the times that Ms. Owens documented the water flowing from Lake Blake into the Lewis Street culvert. Maddan testified that in his personal observation over many years, Lake Blake generally discharges excess stormwater into the Lewis Street culvert only as a result from a significant rainfall event. Lake Blake discharges water into the Lewis Street culvert at regular intervals. Such discharged water from Lake Blake ultimately is conveyed through the Okaloosa County stormwater drainage system and released into the surface waters of Cinco Bayou, a water body of the State of Florida. The Okaloosa County stormwater drainage system connecting Lake Blake to Cinco Bayou is a series of excavated water bodies. Lake Blake is connected to the surface waters of Cinco Bayou and regularly exchanges water with Cinco Bayou. Exemptions from DEP's Jurisdiction To assert dredge and fill permitting jurisdiction over this property, not only must Lake Blake be connected to the waters of the State, but the property must not be otherwise exempt from dredge and fill permitting jurisdiction under either statute or rule. On August 29, 2002, under the authority of the Corporation, Maddan filed a "Joint Application for Works in the Waters of Florida" with DEP requesting an exemption from DEP's dredge and fill permitting jurisdiction under Rule Chapter 17- 312, re-codified as Rule Chapter 62-312. Rule 62-312.050, Florida Administrative Code, sets out the recognized exemptions to DEP's dredge and fill permitting jurisdiction. Respondents primarily rely on Rule 62-312.050(4), Florida Administrative Code, which provides that "[n]o permit under this chapter shall be required for dredging or filling in waters which are contained in those artificially constructed stormwater treatment and conveyance systems designed solely for the purpose of stormwater treatment and that are regulated by the Department or the water management district." Lake Blake, however, is the result of excavations in a borrow pit. Because of surrounding development, Lake Blake receives stormwater runoff; however, the lake was not "designed solely for the purpose of stormwater treatment," and cannot therefore qualify for this exemption. Respondents also cite Rule 62-312.050(1)(g), Florida Administrative Code, which provides an exemption for the "construction of seawalls or riprap, including only that backfilling needed to level land behind the seawalls or riprap, in artificially created waterways where such construction will not violate existing water quality standards, impede navigation or adversely affect flood control." Even assuming that the filling of the finger of Lake Blake meets the test of construction of a seawall, there is no evidence that such filling of Lake Blake was ever subjected to appropriate water quality tests, much less meeting such water quality tests as well as the other requirements of this exemption. In addition to the exemptions established by Rule 62- 312.050, Respondents cite statutory exemptions. The definition of "waters" which are regulated under Chapter 403, as set forth in Section 403.031(13), provides in pertinent part that "[w]aters owned entirely by one person other than the state are included only in regard to possible discharge on other property or water." Although Lake Blake is owned entirely by one person, this provision does not exempt Lake Blake because of not only its "possible discharge" but because of its actual discharge on the surface waters of Cinco Bayou. Respondents also cite Section 403.812, which provides that "[t]he department shall not require dredge and fill permits for stormwater management systems where such systems are located landward of the point of connection to waters of the state and are designed, constructed operated and maintained for stormwater treatment, flood attenuation, or irrigation." Although Lake Blake at least since 1976 has been utilized as part of Okaloosa County's stormwater drainage system, which is located landward of Cinco Bayou, it was not designed or constructed for stormwater treatment, flood attenuation or irrigation, and it is not being operated or maintained for stormwater treatment, flood attenuation or irrigation. Lake Blake does not qualify for an exemption from DEP's dredge and fill permitting jurisdiction.
The Issue The issue is whether Bayou Arbors, Inc. (Arbors), is entitled to a dredge and fill permit to construct docks in DeBary Bayou, Volusia County, Florida.
Findings Of Fact On January 8, 1986, DER received an application from Arboretum, a predecessor in interest of Arbors, to construct 12,758 square feet of docks in DeBary Bayou to provide ninety eight (98) boat slips, and to dredge 2,509 cubic yards of shoreline material from DeBary Bayou in areas within DER's jurisdiction under the proposed boat docks, and to place approximately 800 linear feet of concrete riprap along the shoreline after it was dredged. Following the initial application review process, which included on- site evaluations by several DER biologists, on April 14, 1986, DER prepared a Biological and Water Quality Assessment in which DER's staff recommended that the project be modified to delete the dredging, allowing the littoral zone to remain intact. On April 24, 1986, DER forwarded its Biological and Water Quality Assessment to Mr. Charles Gray, the property owner. In response to DER's recommendations, the Applicant submitted, and on April 30, 1986, DER received, a revised Application which deleted the originally-proposed shoreline dredging of 2,509 cubic yards of material as well as the placing of 800 linear feet of concrete riprap. This Application was submitted by Mr. Duy Dao, a Professional Engineer registered in the State of Florida. This Application proposed constructing approximately 17,000 square feet of docking facilities, providing ninety-eight boat slips, along approximately 2,580 linear feet of shoreline adjacent to twenty-four acres of uplands owned by the Applicant. The original and the revised drawings omitted a vertical scale from the cross-section drawings of the project. This omission gave the impression that the shoreline bank of DeBary Bayou was steeper than it actually is and that the water depths in DeBary Bayou adjacent to the north shoreline are deeper than they actually are. However, DER's biologists were on-site four times between February 25, 1986, and May 19, 1986. They observed the existing slope of the DeBary Bayou shoreline and the existing depths in DeBary Bayou, and the on-site observations negated the effect of the omission in the drawings. The omission in the drawings did not affect DER's evaluation of the project. On May 23, 1986, DER issued its Intent to Issue and Draft Permit No. 64-114399-4 to Arboretum. The Intent to Issue and the Draft Permit include the following Specific Conditions: Further construction on the Applicant's property along the DeBary Bayou shall be limited to uplands; Issuance of this permit does not infer the issuance of a permit for dredging in the Bayou at a future date, should an application for dredging be submitted; A deed restriction shall be placed on the condominium limiting boats moored at the facility to seventeen feet or less. A copy of the deed restriction shall be submitted to the Department within sixty days of issuance of this permit; There shall be no "wet" (on-board) repair of boats or motors at this facility; All boats moored at the dock shall be for the use of residents of the condominium only. Public use of the dock or rental or sale of mooring slips to non-residents of the condominium is prohibited; Manatee warning signs shall be placed at 100 foot intervals along the length of the dock(s); Turbidity shall be controlled during construction (by the use of siltation barriers) to prevent violations of Rule 17-3.061(2)(r), Florida Administrative Code. On June 29, 1987, Volusia County, DER and Arboretum entered into a "Joint Stipulation for Settlement" wherein Arboretum agreed not to construct more than twenty-six docks accommodating more than fifty-two boat slips along Arboretum's DeBary Bayou frontage of 2,580 feet. Furthermore, Arboretum agreed that it would modify the configuration and the design of the boat slips and the location of the boat docks; that it would post Slow Speed, No Wake zone signs and manatee education signs along DeBary Bayou from the 1-4 bridge west to a point 100 feet west of the western boundary of Arboretum's boat docks; and that as mitigation for the removal of vegetation from the littoral zone where the boat slips would be constructed, Arboretum would plant wetland hardwood trees. In addition to the Joint Stipulation for Settlement, on June 14, 1987, the property owners, Charles Gray and Sandra Gray, as part of their agreement with Volusia County, executed a "Declaration of Covenants, Conditions, and Restrictions" to which the Joint Stipulation for Settlement was attached as an exhibit. Said Declaration of Covenants, Conditions, and Restrictions, reiterated the Joint Stipulation's limitation of construction of boat docks in DeBary Bayou and further provided that said boat docks would not be constructed at the Arboretum project site in DeBary Bayou unless and until certain maintenance dredging set forth in Article II of the Declaration of Covenants, Conditions, and Restrictions occurred. Furthermore, Article III of said Declaration of Covenants, Conditions and Restrictions set forth certain prohibitions regarding constructing boat ramps on the Arboretum property and docking or storing boats along the DeBary Bayou shoreline except at the site of the proposed docks. In 1969, an artificial channel was excavated in DeBary Bayou adjacent to the north shoreline of DeBary Bayou by a dragline operating along the shoreline. At present, said channel has been partially filled by organic sediments originating in DeBary Bayou. There exists in Section 403.813(2)(f), Florida Statutes, an exemption from the DER's permitting requirements for the performance of maintenance dredging of existing man-made channels where the maintenance dredging complies with the statutory provisions and with the regulatory provisions found in Florida Administrative Code Rule 17-4.040(9)(d). The dragline excavation work performed in DeBary Bayou in 1969 created a structure which conforms to the definition of "channel" provided in Section 403.803(3), Florida Statutes. The maintenance dredging required by the Declaration of Covenants, Conditions, and Restrictions is to be performed by suction vacuuming of the silt sediment, from the 1969 channel and that dredged material is to be placed on Arbors' upland property at the project site. This maintenance dredging differs from the dredging originally proposed by the applicant in its application submitted in January 1986. The dredging originally proposed, which DER recommended against, was to be performed by back hoes and drag-lines which would have cut into the north shoreline of DeBary Bayou and would have affected the littoral zone along the project shoreline. The average water level in Lake Monroe and DeBary Bayou is approximately 1.8 feet above mean sea level. On April 18, 1987, transact studies in DeBary Bayou showed water levels at 3.2 feet above mean sea level and that water depths in DeBary Bayou to a hard sand/fragmented shell bottom ranged from approximately one foot along the south shoreline to approximately nine feet in deep areas in the former channel. The average depth of the channel is five feet below mean sea level. The water depth in DeBary Bayou ranges from approximately one to three feet. At times of average water levels, one to three feet of silt or unconsolidated sediment overburden covers the natural hard sand/shell bottom of DeBary Bayou. This silt and sediment overburden is composed of organic material and is easily disturbed. When it is disturbed, it raises levels of turbidity, although there was no evidence presented that the turbidity would violate state water quality standards. This silt and sediment overburden has been deposited at a faster rate than it would normally be deposited under natural conditions because of the Army Corps of Engineers' herbicidal spraying of floating plants in DeBary Bayou. As this silt and sediment overburden decomposes, it takes oxygen from the water. The presence of a strong odor of hydrogen sulfide indicates that the oxygen demand created by the sediment is greater than the available supply of oxygen at the sediment-water interface. This unconsolidated silt and sediment overburden does not appear to harbor either submerged vegetation or significant macroinvertebrate populations. The Shannon/Weaver diversity index of benthic macroinvertebrates at four locations in DeBary Bayou indicated lowest diversity at the project site and highest diversity at the 1-4 overpass, where a small patch of eel grass is growing. Removal of this silt and sediment overburden from the 1969 channel will enhance the system, enabling a hard bottom to be established, with a probability of subsequent establishment of a diversity of submerged macrophytes. Removal of the silt and sediment overburden from the 1969 channel will restore the natural hard sand/fragmented shell bottom in that area of DeBary Bayou. It is unlikely that boat traffic in the restored channel will cause turbidity which will violate state water quality standards. Removal of this silt and sediment overburden will improve water quality in DeBary Bayou by removing a source of oxygen demand. Removal of this silt and sediment overburden will create a better fish habitat by exposing some of the natural bottom of DeBary Bayou. Fish are unable to spawn in the unstable silt and sediment. Removal of this silt and sediment overburden will increase the depth of water in DeBary Bayou channel to between four to six feet. The maintenance dredging, required by the Declaration of Covenants, Conditions, and Restrictions, is limited by statute to the channel which was excavated in 1969. Therefore, a continuous channel will not be maintained from the project site eastward to Lake Monroe. At present, a sandbar exists at the confluence of DeBary Bayou and Lake Monroe. During low water, this sandbar restricts navigation into and out of DeBary Bayou to small craft. At present, boats can and do travel on DeBary Bayou for fishing and for other water-related recreational activities. However, due to water level fluctuations, boating on DeBary Bayou is easier during higher water periods. During lower water periods, navigation into and out of DeBary Bayou is still possible, but boaters must proceed using common sense and caution. The United States Fish and Wildlife Service (FWS) has no evidence that manatees presently use or have ever used DeBary Bayou. Adult manatees have an average girth of approximately three (3) feet. Without a continuous channel open to Lake Monroe, manatees are not likely to go up DeBary Bayou. Since the water at the sandbar at the mouth of DeBary Bayou at its confluence with Lake Monroe is generally less than three feet deep throughout the year, it is likely that these shallow waters will deter manatees from entering DeBary Bayou. DeBary Bayou is a spring-fed run from a spring a substantial distance upstream. The sheetflow of the spring water follows a circuitous route through marsh areas prior to reaching the area of this project. The proposed site is just west of the 1-4 overpass and Lake Monroe. The FWS's data show that the St. Johns River in Volusia County has an extremely low documented manatee mortality rate resulting from boat/barge collisions. Generally, boats greater than 23 feet long are more likely to kill manatees outright than smaller boats are. In marinas, manatees are very rarely killed by collisions with boats. Manatees and marinas are highly compatible. On August 1, 1986, the FWS issued a "no-jeopardy" opinion regarding Arbors' project. In this letter, the FWS stated that Arbors' project was not likely to jeopardize the continued existence of the manatee or to adversely modify the manatee's critical habitat. In the year since the FWS issued its no-jeopardy opinion, no manatee mortalities resulting from boat-barge collisions have been documented in the St. Johns River in Volusia County. The FWS recommended one boat slip per one hundred linear feet of waterfront, or twenty-six boat slips for the project. A single-family residence which would be entitled to one pier could berth an unlimited number of boats at that single pier. The FWS would have no control over the number of boats using that single pier. Arbors' project calls for twenty-six piers. The FWS's evaluation of Arbors' project is exactly the same as that agency's evaluation of any other marina project anywhere in areas designated as critical manatee habitat. All of the St. Johns River in Volusia County, Florida, is designated as critical manatee habitat. On July 16, 1986, after issuance of its Intent to Issue, DER received comments from the Florida Department of Natural Resources regarding Arbors' project and its potential impact on manatees. DER considered the possibility of boat/manatee collisions and had specifically considered this issue. DER did not agree with the broad and general concerns expressed by the Department of Natural Resources, and DER's rules have not adopted a specific requirement regarding a ratio between the length of a project's shoreline and the number of permittable boat slips. On July 16, 1986, the Department received a letter from the FWS concerning fisheries issues and navigation. This FWS letter was received after issuance of DER's Intent to Issue. Although DER considered these comments, DER disagreed with the FWS's recommendations regarding these issues. Water quality sampling and analysis showed that at present, there are no violations of DER's Class III water quality standard in DeBary Bayou, except for the dissolved oxygen criterion on some occasions during early-morning hours, and that result is to be expected. It is further not expected that there will be any water quality violations after the project is completed. If the work areas affected by driving piles to build floating docks and the work area around the maintenance dredging of the DeBary Bayou channel are contained within turbidity barriers, as required by general and specific conditions of the DER's proposed Draft Permit, it is anticipated that no violations of the Class III turbidity criterion will occur during construction of Arbors' project. By maintenance dredging the former DeBary Bayou channel, Arbors will remove the silt and sediment overburden from the channel and restore a deep (four to five feet below mean sea level) channel having a hard sand/fragmented shell bottom. Arbors' dock will be restricted to small boats whose operation in the deep channel will be unlikely to re-suspend silt and sediment and cause violations of the Class III turbidity criterion. Additionally, it is unlikely that any turbidity which is created by turbulence from boat propellers in a designated "No Wake, Slow Speed" zone will violate the Class III turbidity criterion. Although the entire project will be enhanced by the proposed maintenance dredging, such dredging is not a part of the permit application. From the evidence it appears that the project is permittable without the dredging. Although Arbors' project will result in the addition of some oils and greases associated with outboard motors to DeBary Bayou, the addition is not expected to result in violations of the Class III water quality standards. Additionally, release of heavy metals from anti-fouling paints should be minimal, and that release can be further controlled by specifically prohibiting over-water repair of boats and motors. Some addition of phosphorous to the waters of DeBary Bayou is anticipated due to use of phosphate-based detergents for washing boats. Additionally, minimal amounts of phosphorous may be added to DeBary Bayou from re-suspension of organic silts by turbulence from boat propellers. However, DER has no standards for phosphorous in fresh waters, and the minimal additional amounts of phosphorous expected from these sources are not anticipated to violate DER's general nutrient rule. Operation of boats at Arbors' proposed boat docks will cause no water quality problems which would not be caused by operation of boats at any other marina anywhere in Lake Monroe or anywhere else in the State of Florida. While WVC's expert, Robert Bullard, testified that Arbors' proposed boat docks could potentially cause violation of DER's Class III water quality criteria for turbidity, oils and greases, heavy metals and phosphorous, he was unable to testify that Arbors' project actually would cause such violation. His testimony in this regard was speculative and is not given great weight. No other WVC expert testified that Arbors' project was likely to cause violation of any criteria of DER's Class III water quality standards. It is anticipated that the shade cast by the boat docks will not have an adverse affect on water quality. Additionally, DeBary Bayou is a clear, spring-fed water body open to direct sunlight. The boat docks will cast shade which will enhance fish habitat. The proposed docks will not threaten any production of fish or invertebrate organisms. The mitigation plan proposed by the applicant and accepted by Volusia County and DER requires planting wetland hardwood tree species. These trees will certainly assist in stabilizing the bank of DeBary Bayou and minimizing erosion of the shoreline. Additionally, these trees will absorb nutrients from the water and will perpetuate the wooded wetland habitat along the DeBary Bayou shoreline. Arbors' own expert, Carla Palmer, also suggested the sprigging of eel grass in the dredged portion of DeBary Bayou. Such planting should be included as part of the mitigation plan. DER considered the cumulative impact of this docking facility. Four marinas are presently permitted on Lake Monroe and in the St. Johns River between Lake Monroe and Deland. DER considered these facilities' existence when it reviewed Arbors' application, and was satisfied that Arbors' boat dock facility would not have an adverse cumulative impact. There are no specific guidelines for a cumulative impact evaluation; accordingly, DER must apply its cumulative impact evaluation on a case-by-case basis. In the present case, there is no showing of adverse cumulative impacts from this project. Arbors' project will not adversely affect significant historical or archaeological resources recognized pursuant to applicable Florida or Federal Law. WVC was organized in March 1985, to oppose development in West Volusia County. WVC did not meet regularly and did not keep regular minutes of its meetings in the interim between organizing and filing the Petition in June 1986, for an administrative hearing on the Intent to Issue a permit for Arbors' project. When the Petition was filed, WVC did not have a membership roll, and was unsure how many members it had. Further, it is unclear as to how many members may have attended an "emergency" meeting to authorize filing said Petition. Approximately five months after said Petition was filed, WVC was incorporated and approximately nine months after the Petition was filed, WVC compiled a list of the people who were WVC members in June 1986. The emergency meeting WVC held in June 1986, to authorize filing said Petition was the first and the only such "emergency" meeting WVC ever held. The minutes of the emergency meeting have been lost. In June 1986, WVC may have had written rules authorizing emergency meetings and authorizing it to file suit, but its Chairman is unsure of this. Six of WVC's approximately 20 members may have lived within one mile of Arbors' project site in June 1986. Two of these members lived on waterfront property on Lake Monroe east of the 1-4 bridge. Some of these WVC members have never taken a boat west of 1-4 onto DeBary Bayou. WVC, as an organization, never sponsored outings or boat trips onto DeBary Bayou before filing the Petition. WVC's officers at the time of filing the Petition did not use DeBary Bayou for boating, fishing or swimming. No WVC members have ever seen manatees in DeBary Bayou. As with any other similar project on Lake Monroe, the boats which might be berthed at Arbors' project might add additional trash to the waters of Lake Monroe, might disturb the wildlife which WVC members might see on their property, and might cause wakes which might erode waterfront property. One of WVC's founders, who was an officer in June 1986, when WVC filed the Petition, stated that she would not be adversely affected in kind or degree any more than any other taxpayer in Florida. Friends timely intervened and its intervention was authorized by its membership at a regularly noticed meeting.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Environmental Regulation enter a Final Order granting Permit Number 64-114399-4, subject to those specific conditions set forth in paragraph 6 hereof and as modified by the stipulation entered into between Arboretum, Volusia County, and Department of Environmental Regulation, as more particularly described in paragraphs 7 and 8 hereof, and to include within the mitigation plan the sprigging of eel grass in areas of the dredged portion of DeBary Bayou. DONE AND ENTERED this 16th day of September 1987, in Tallahassee, Florida. DIANE K. KIESLING Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 FILED with the Clerk of the Division of Administrative Hearings this 16th day of September 1987. APPENDIX TO RECOMMENDED ORDER IN CASE NO. 86-2463 The following constitutes my specific rulings pursuant to Section 120.59(2), Florida Statutes, on all of the proposed findings of fact submitted by the parties in this case. Specific Rulings on Proposed Findings of Fact Submitted by Petitioner and Intervenor, West Volusia Conservancy, Inc., and Friends of the St. Johns, Inc. 1. Each of the following proposed findings of fact are adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1(3); 2(5); 8(24); 13(8); 46(57); and 47(57). 2. Proposed findings of fact 3, 4, 7, 10, 11, 12, 28, 29, 32, 34, 35, 36, 40, 42, 43, 44, and 45 are rejected as being subordinate to the facts actually found in this Recommended Order. 3. Proposed findings of fact 5, 14, 15, 16, 17, 20, 23, 24, 25, 26, 27, 30, 31, 33, 39, and 41 are rejected as being unsupported by the competent, substantial evidence. 4. Proposed findings of fact 6, 9, 18, 19, 21, 22, 37, and 38 are rejected as irrelevant. Specific Rulings on Proposed Findings of Fact Submitted by Respondent, Bayou Arbors, Inc. 1. Each of proposed findings of fact 1-56 are adopted in substance as modified in the Recommended Order, in Findings of Fact 1-56. Specific Rulings on Proposed Findings of Fact Submitted by Respondent, Department of Environmental Regulation Each of the following proposed findings of fact are adopted in substance as modified in the Recommended Order. The number in parentheses is the Finding of Fact which so adopts the proposed finding of fact: 1-11(1-11); 13-28(12-27); 29-38(29-38); 39(38); and 40-48(39-47). Proposed finding of fact 12 is rejected as unnecessary. COPIES FURNISHED: Dale Twachtmann, Secretary Department of Environmental Regulation 2600 Blair Stone Road Tallahassee, Florida 32399-2400 Richard S. Jackson, Esquire 1145 West Rich Ave. Deland, Florida 32720 Dennis Bayer, Esquire P. O. Box 1505 Flagler Beach, Florida 32036 Philip H. Trees, Esquire P. O. Box 3068 Orlando, Florida 32802 Vivian F. Garfein, Esquire Department of Environmental Regulation 2600 Blair Stone Road Tallahassee, Florida 32301-8241
