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       Florida Senate - 2010                                    SB 1186
       By Senator Bennett
       21-00902-10                                           20101186__
    1                        A bill to be entitled                      
    2         An act relating to renewable energy; amending s.
    3         366.92, F.S.; revising legislative intent regarding
    4         the state’s renewable energy policy; deleting
    5         provisions requiring that the Public Service
    6         Commission adopt rules for a renewable portfolio
    7         standard; requiring that the commission provide for
    8         full cost recovery for certain renewable energy
    9         projects; creating s. 366.921, F.S.; providing
   10         legislative findings; requiring that a petition filed
   11         by a provider for approval of a facility producing a
   12         Florida renewable energy resource comply with certain
   13         criteria; specifying the criteria to be considered by
   14         the commission in approving a petition for such
   15         facility; requiring that the commission’s final order
   16         approving a facility include authorization for annual
   17         cost recovery; amending s. 403.503, F.S.; redefining
   18         the term “electrical power plant” for purposes of the
   19         Florida Electrical Power Plant Siting Act to exclude
   20         solar electrical generating facilities; providing an
   21         effective date.
   23  Be It Enacted by the Legislature of the State of Florida:
   25         Section 1. Section 366.92, Florida Statutes, is amended to
   26  read:
   27         366.92 Florida renewable energy policy.—
   28         (1) In order to stimulate the state’s economy, encourage
   29  businesses to invest in clean technologies, and foster research,
   30  development, manufacturing, construction, and jobs in new and
   31  renewable energy, it is the intent of the Legislature to promote
   32  the development of renewable energy; protect the economic
   33  viability of Florida’s existing renewable energy facilities;
   34  diversify the types of fuel used to generate electricity in
   35  Florida; lessen Florida’s dependence on natural gas and fuel oil
   36  for the production of electricity; minimize the volatility of
   37  fuel costs; encourage investment within the state; improve
   38  environmental conditions by reducing water consumption and
   39  carbon and other greenhouse gas emissions; and, at the same
   40  time, minimize the costs of power supply to electric utilities
   41  and their customers.
   42         (2) As used in this section, the term:
   43         (a) “Florida renewable energy resources” means renewable
   44  energy, as defined in s. 377.803, that is produced in Florida.
   45         (b) “Provider” means a “utility” as defined in s.
   46  366.8255(1)(a).
   47         (c) “Renewable energy” means renewable energy as defined in
   48  s. 366.91(2)(d).
   49         (d) “Renewable energy credit” or “REC” means a product that
   50  represents the unbundled, separable, renewable attribute of
   51  renewable energy produced in Florida and is equivalent to 1
   52  megawatt-hour of electricity generated by a source of renewable
   53  energy located in Florida.
   54         (e) “Renewable portfolio standard” or “RPS” means the
   55  minimum percentage of total annual retail electricity sales by a
   56  provider to consumers in Florida that shall be supplied by
   57  renewable energy produced in Florida.
   58         (3) The commission shall adopt rules for a renewable
   59  portfolio standard requiring each provider to supply renewable
   60  energy to its customers directly, by procuring, or through
   61  renewable energy credits. In developing the RPS rule, the
   62  commission shall consult the Department of Environmental
   63  Protection and the Florida Energy and Climate Commission. The
   64  rule shall not be implemented until ratified by the Legislature.
   65  The commission shall present a draft rule for legislative
   66  consideration by February 1, 2009.
   67         (a) In developing the rule, the commission shall evaluate
   68  the current and forecasted levelized cost in cents per kilowatt
   69  hour through 2020 and current and forecasted installed capacity
   70  in kilowatts for each renewable energy generation method through
   71  2020.
   72         (b) The commission’s rule:
   73         1. Shall include methods of managing the cost of compliance
   74  with the renewable portfolio standard, whether through direct
   75  supply or procurement of renewable power or through the purchase
   76  of renewable energy credits. The commission shall have
   77  rulemaking authority for providing annual cost recovery and
   78  incentive-based adjustments to authorized rates of return on
   79  common equity to providers to incentivize renewable energy.
   80  Notwithstanding s. 366.91(3) and (4), upon the ratification of
   81  the rules developed pursuant to this subsection, the commission
   82  may approve projects and power sales agreements with renewable
   83  power producers and the sale of renewable energy credits needed
   84  to comply with the renewable portfolio standard. In the event of
   85  any conflict, this subparagraph shall supersede s. 366.91(3) and
   86  (4). However, nothing in this section shall alter the obligation
   87  of each public utility to continuously offer a purchase contract
   88  to producers of renewable energy.
   89         2. Shall provide for appropriate compliance measures and
   90  the conditions under which noncompliance shall be excused due to
   91  a determination by the commission that the supply of renewable
   92  energy or renewable energy credits was not adequate to satisfy
   93  the demand for such energy or that the cost of securing
   94  renewable energy or renewable energy credits was cost
   95  prohibitive.
   96         3. May provide added weight to energy provided by wind and
   97  solar photovoltaic over other forms of renewable energy, whether
   98  directly supplied or procured or indirectly obtained through the
   99  purchase of renewable energy credits.
  100         4. Shall determine an appropriate period of time for which
  101  renewable energy credits may be used for purposes of compliance
  102  with the renewable portfolio standard.
  103         5. Shall provide for monitoring of compliance with and
  104  enforcement of the requirements of this section.
  105         6. Shall ensure that energy credited toward compliance with
  106  the requirements of this section is not credited toward any
  107  other purpose.
  108         7. Shall include procedures to track and account for
  109  renewable energy credits, including ownership of renewable
  110  energy credits that are derived from a customer-owned renewable
  111  energy facility as a result of any action by a customer of an
  112  electric power supplier that is independent of a program
  113  sponsored by the electric power supplier.
  114         8. Shall provide for the conditions and options for the
  115  repeal or alteration of the rule in the event that new
  116  provisions of federal law supplant or conflict with the rule.
  117         (c) Beginning on April 1 of the year following final
  118  adoption of the commission’s renewable portfolio standard rule,
  119  each provider shall submit a report to the commission describing
  120  the steps that have been taken in the previous year and the
  121  steps that will be taken in the future to add renewable energy
  122  to the provider’s energy supply portfolio. The report shall
  123  state whether the provider was in compliance with the renewable
  124  portfolio standard during the previous year and how it will
  125  comply with the renewable portfolio standard in the upcoming
  126  year.
  127         (3)(a)(4) In order to promote and facilitate the
  128  development of clean industry in this state demonstrate the
  129  feasibility and viability of clean energy systems, the
  130  commission shall provide for full cost recovery under the
  131  environmental cost-recovery clause of all reasonable and prudent
  132  costs incurred by a provider for:
  133         1. Renewable energy projects that result in a net decrease
  134  of are zero greenhouse gas emitted emitting at the point of
  135  generation, up to a total of 110 megawatts statewide, and for
  136  which the provider has secured necessary land, zoning permits,
  137  and transmission rights within the state, with up to a total of
  138  300 megawatts in 2010 and up to an additional 200 megawatts
  139  annually in 2011 and 2012 as part of new renewable energy
  140  projects in addition to megawatts attributable to renewable
  141  energy projects approved by the commission for cost recovery
  142  before January 1, 2010.
  143         2.Up to 15 megawatts annually for 2010 and up to 10
  144  megawatts annually for 2011 and 2012, which must be rooftop or
  145  pole-mounted solar energy applications.
  146         (b) Such costs shall be deemed reasonable and prudent for
  147  purposes of cost recovery so long as the provider has used
  148  reasonable and customary industry practices in the design,
  149  procurement, and construction of the project in a cost-effective
  150  manner appropriate to the location of the facility. The provider
  151  shall report to the commission as part of the cost-recovery
  152  proceedings the construction costs, in-service costs, operating
  153  and maintenance costs, hourly energy production of the renewable
  154  energy project, environmental benefits, and estimated fuel
  155  savings of the facility and any other information deemed
  156  relevant by the commission. Any provider constructing a clean
  157  energy facility pursuant to this section shall file for cost
  158  recovery no later than July 1, 2009.
  159         (4)(5) Each municipal electric utility and rural electric
  160  cooperative shall develop standards for the promotion,
  161  encouragement, and expansion of the use of renewable energy
  162  resources and energy conservation and efficiency measures. On or
  163  before April 1, 2009, and annually thereafter, each municipal
  164  electric utility and electric cooperative shall submit to the
  165  commission a report that identifies such standards.
  166         (5)(6)Nothing in This section does not shall be construed
  167  to impede or impair terms and conditions of existing contracts.
  168         (6)(7) The commission may adopt rules to administer and
  169  implement the provisions of this section.
  170         Section 2. Section 366.921, Florida Statutes, is created to
  171  read:
  172         366.921Renewable energy; determination of need.—
  173         (1) The Legislature finds that the goals stated in s.
  174  366.92(1) shall be accomplished by fostering the expansion and
  175  development of Florida renewable energy resources. Providers of
  176  Florida renewable energy resources must acquire commission
  177  approval before the construction, conversion, licensing, and
  178  operation of a facility producing such resources or the purchase
  179  of capacity or energy from a facility producing such resources.
  180  Any petition filed by a provider for approval of a facility
  181  producing a Florida renewable energy resource must meet the
  182  criteria specified in this section.
  183         (2) Notwithstanding any provision in s. 403.519, the
  184  Legislature finds that there is a need for Florida renewable
  185  energy resources consistent with the goals stated in s.
  186  366.92(1).
  187         (3) Upon the filing by a provider of a petition for
  188  approval of a facility producing a Florida renewable energy
  189  resource, the commission shall schedule a formal administrative
  190  hearing within 10 days after the filing of the petition and vote
  191  on the petition within 120 days after such filing.
  192         (4) Before approving the petition, the commission shall
  193  consider whether the:
  194         (a) Proposed facility employs reasonable and customary
  195  industry practices in the design, engineering, and construction
  196  of the facility producing the Florida renewable energy resource
  197  in a cost-effective manner that is appropriate to the proposed
  198  technology and location of the facility.
  199         (b) Entity, including a provider, which would engineer,
  200  design, and construct the proposed facility has the requisite
  201  technical and financial qualifications, expertise, and
  202  capability.
  203         (c) Entity, including a provider, which would operate the
  204  proposed facility has the requisite technical qualifications,
  205  expertise, and capability.
  206         (d) Proposed production of the Florida renewable energy
  207  resource will have a positive impact on the environment,
  208  including the reduction of greenhouse gas emissions.
  209         (e) Proposed production of the Florida renewable energy
  210  resource will result in local economic benefits, including job
  211  creation, for the state’s economy.
  212         (f) Proposed Florida renewable energy resource will enhance
  213  the fuel diversity of the provider.
  214         (g) Proposed facility producing the Florida renewable
  215  energy resource will mitigate or avoid the use of water
  216  resources in the production of renewable power.
  217         (5) The commission’s final order approving a facility
  218  producing a Florida renewable energy resource shall include
  219  express authorization for annual cost recovery pursuant to ss.
  220  366.92 and 366.8255.
  221         Section 3. Subsection (14) of section 403.503, Florida
  222  Statutes, is amended to read:
  223         403.503 Definitions relating to Florida Electrical Power
  224  Plant Siting Act.—As used in this act:
  225         (14) “Electrical power plant” means, for the purpose of
  226  certification, any steam or solar electrical generating facility
  227  using any process or fuel, including nuclear materials, except
  228  that this term does not include any steam or solar electrical
  229  generating facility of less than 75 megawatts in capacity unless
  230  the applicant for such a facility elects to apply for
  231  certification under this act. This term also includes the site;
  232  all associated facilities that will be owned by the applicant
  233  that are physically connected to the site; all associated
  234  facilities that are indirectly connected to the site by other
  235  proposed associated facilities that will be owned by the
  236  applicant; and associated transmission lines that will be owned
  237  by the applicant which connect the electrical power plant to an
  238  existing transmission network or rights-of-way to which the
  239  applicant intends to connect. At the applicant’s option, this
  240  term may include any offsite associated facilities that will not
  241  be owned by the applicant; offsite associated facilities that
  242  are owned by the applicant but that are not directly connected
  243  to the site; any proposed terminal or intermediate substations
  244  or substation expansions connected to the associated
  245  transmission line; or new transmission lines, upgrades, or
  246  improvements of an existing transmission line on any portion of
  247  the applicant’s electrical transmission system necessary to
  248  support the generation injected into the system from the
  249  proposed electrical power plant.
  250         Section 4. This act shall take effect July 1, 2010.

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