Florida Senate - 2010 SB 1186
By Senator Bennett
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
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.
47 (c) “Renewable energy” means renewable energy as defined in
48 s. 366.91(2)(d).
(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
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
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
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
172 366.921 Renewable 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.
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
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.