Florida Senate - 2010 SB 2404
By Senator Bennett
1 A bill to be entitled
2 An act relating to renewable energy; providing
3 legislative findings; providing definitions; requiring
4 each electric utility in the state to collect from
5 each residential, commercial, and industrial customer
6 a designated monthly systems charge; requiring the
7 electric utilities to deposit collected funds into the
8 Sustainable and Renewable Energy Policy Trust Fund;
9 creating a direct-support organization for the Florida
10 Energy Office; providing for a board of directors of
11 the direct-support organization; providing for
12 appointment of members and terms of office; requiring
13 a contract between the office and the direct-support
14 organization; providing for the use of the deposited
15 funds; requiring an annual audit; amending s. 366.91,
16 F.S.; requiring that a purchase contract offered to
17 producers of renewable energy contain payment
18 provisions for energy and capacity based upon a public
19 utility’s equivalent cost-recovery rate for certain
20 clean energy projects rather than the utility’s full
21 avoided costs; amending s. 377.806, F.S.; revising the
22 expiration date for the Solar Energy System Incentives
23 Program; extending the period of time for which
24 residents of the state are eligible to receive rebates
25 for specified solar energy systems; revising the
26 rebate amount for eligible solar energy systems;
27 providing a schedule for rebate amounts based on the
28 total wattage of the system; providing an effective
31 Be It Enacted by the Legislature of the State of Florida:
33 Section 1. (1) The Legislature finds that there is a need
34 for a funding mechanism to support and finance a comprehensive
35 energy policy, especially as it relates to sustainable and
36 renewable energy, energy conservation, and energy efficiencies.
37 With such a stable funding mechanism, this state will realize
38 important long-term goals, including:
39 (a) Increased independence from foreign oil;
40 (b) Ensuring an adequate and reliable energy supply;
41 (c) The promotion of economic growth and new investment in
42 the creation of high-paying jobs;
43 (d) The mitigation of adverse environmental impacts and
44 promotion of stewardship of the environment;
45 (e) Leading the nation in energy conservation and energy
46 efficiencies through needed support for implementing and
47 marketing the products of renewable energy research and
48 innovation; and
49 (f) Contributing to a sustainable and renewable energy
50 policy for the state.
51 (2) As used in this section, the term:
52 (a) “Direct-support organization” means an organization
53 that is:
54 1. A Florida corporation, not for profit, incorporated
55 under chapter 617, Florida Statutes, and approved by the
56 Department of State;
57 2. Organized and operated exclusively to obtain funds; to
58 request and receive grants, gifts, and bequests of moneys; to
59 acquire, receive, hold, invest, and administer in its own name
60 securities, funds, or property; and to make expenditures to
61 support the achievement of the goals stated under subsection (1)
62 and to increase public awareness of and support for the
63 Sustainable and Renewable Energy Trust Fund; and
64 3. Determined by the office to be operating in a manner
65 consistent with the goals stated under subsection (1).
66 (b) “Electric utility” means any municipal electric
67 utility, investor-owned electric utility, or rural electric
68 cooperative that owns, maintains, or operates an electric
69 generation, transmission, or distribution system within the
71 (c) “Energy conservation” and “energy efficiencies” means
72 any activity that facilitates and promotes the use of cost
73 effective energy conservation, energy-demand management, and
74 renewable energy technologies.
75 (d) “Office” means the Florida Energy Office.
76 (e) “Renewable energy” means solar photovoltaic energy,
77 solar thermal energy, geothermal energy, ocean thermal energy,
78 wave or tidal energy, wind, fuel cells, landfill gas, hydrogen
79 production and hydrogen conversion technologies, low-emission
80 advanced biomass conversion technologies, alternative fuels used
81 for electricity generation, including ethanol, biodiesel, or
82 other fuel produced in this state and derived from agricultural
83 produce, algae, food waste, or waste vegetable oil, usable
84 electricity from combined heat and power systems that have waste
85 heat recovery systems, thermal storage systems, and other energy
86 resources and emerging technologies that have significant
87 potential for commercialization and that do not involve the
88 combustion of coal, petroleum or petroleum products, municipal
89 solid waste, or nuclear fission.
90 (3) Beginning January 1, 2011, each electric utility shall
91 collect from each residential, commercial, and industrial
92 electric utility customer a monthly charge of 25 cents as a
93 systems benefits charge. The electric utilities shall deposit
94 the collected funds into the Sustainable and Renewable Energy
95 Policy Trust Fund.
96 (4)(a) The Florida Energy Office shall establish a direct
97 support organization to provide assistance, funding, and support
98 for the office in carrying out its mission. This section governs
99 the creation, use, powers, and duties of the direct-support
101 (b) The direct-support organization shall be governed by a
102 board of directors. The board of directors shall consist of nine
103 members, as follows:
104 1. The chair of the Florida Public Service Commission, or
105 his or her designee.
106 2. The Secretary of Environmental Protection, or his or her
108 3. Two members appointed by the Governor, both of whom are
109 residential electric utility customers and one of whom has
110 experience relating to low-income housing concerns.
111 4. Two members appointed by the President of the Senate,
112 both of whom are members of the Senate and one of whom is a
113 member of the minority party.
114 5. Two members appointed by the Speaker of the House of
115 Representatives, both of whom are members of the House of
116 Representatives and one of whom is a member of the minority
118 6. One member appointed by the Chief Financial Officer who
119 has experience related to renewable energy business or
120 commercial investments.
121 (b) The term of office of the board members shall be 3
122 years, except those members of the Senate and the House of
123 Representatives, who shall serve 2-year terms concurrent with
124 the 2-year elected terms of House members. The terms of the
125 initial appointees, except those members of the Senate and the
126 House of Representatives, shall be for 1 year, 2 years, or 3
127 years in order to achieve staggered terms. A member may be
128 reappointed when his or her term expires. The head of the office
129 or his or her designee shall serve as an ex officio member of
130 the board of directors.
131 (c) Members must be residents of this state. A majority of
132 the members must be actively involved with sustainable and
133 renewable energy systems and highly knowledgeable about the
134 office, its research, and its mission. A member may be removed
135 by the Governor, the President of the Senate, the Speaker of the
136 House of Representatives, or the Chief Financial Officer for
137 cause and with the approval of a majority of the members of the
138 board of directors. A vacancy shall be filled in the same manner
139 as the initial appointment.
140 (d) The direct-support organization shall operate under a
141 written contract with the office. The written contract must
142 provide for:
143 1. Certification by the office that the direct-support
144 organization is complying with the terms of the contract and is
145 doing so consistent with the goals and purposes of the
146 department and in the best interests of the state. This
147 certification must be made annually and reported in the official
148 minutes of a meeting of the direct-support organization.
149 2. The reversion of moneys and property held by the direct
150 support organization:
151 a. To the office, if the direct-support organization is no
152 longer approved to operate for the office or if the direct
153 support organization ceases to exist; or
154 b. To the state, if the office ceases to exist.
155 3. The disclosure of the material provisions of the
156 contract and the distinction between the office and the direct
157 support organization to donors of gifts, contributions, or
158 bequests, including such disclosure on all promotional and
159 fundraising publications.
160 (e)1. The office may permit the use of its property,
161 facilities, and personal services by the direct-support
162 organization, subject to this section.
163 2. The office may prescribe by contract any condition with
164 which the direct-support organization must comply in order to
165 use property, facilities, or personal services of the office.
166 3. The office may not permit the use of its property,
167 facilities, or personal services by any direct-support
168 organization organized under this section which does not provide
169 equal employment opportunities to all persons regardless of
170 race, color, national origin, gender, age, or religion.
171 (f) Any transaction or agreement between the direct-support
172 organization created by this section and another direct-support
173 organization or other entity must be approved by the Governor.
174 (g) All moneys received by the direct-support organization
175 from federal and state grants, private contributions, and the
176 Sustainable and Renewable Energy Policy Trust Fund shall be
177 deposited into an account of the direct-support organization.
178 The direct-support organization shall use the collected charges
179 to support funding for sustainable and renewable energy
180 projects, including, but not limited to, grants to provide
181 funding in the following order of priority:
182 1. Any backlog of approved rebate applications for the
183 Solar Energy Systems Incentive Program.
184 2. The implementation of innovation to market projects,
185 with specific attention directed toward the number of in-state
186 jobs created.
187 3. Energy conservation and energy efficiency projects, with
188 specific attention directed to projects for low-income housing,
189 including rental units, rental homes, condominiums, and single
190 family homes.
191 (h)1. The fiscal year of the direct-support organization
192 shall begin on July 1 of each year and end on June 30 of the
193 following year.
194 2. The direct-support organization shall submit to the
195 office its federal Internal Revenue Service Application for
196 Recognition of Exemption form and its federal Internal Revenue
197 Service Return of Organization Exempt from Income Tax form.
198 (i) The direct-support organization shall provide for an
199 annual financial audit in accordance with s. 215.981, Florida
201 Section 2. Subsection (3) of section 366.91, Florida
202 Statutes, is amended to read:
203 366.91 Renewable energy.—
204 (3) On or before January 1, 2006, each public utility must
205 continuously offer a purchase contract to producers of renewable
206 energy. The commission shall establish requirements relating to
207 the purchase of capacity and energy by public utilities from
208 renewable energy producers and may adopt rules to administer
209 this section. The contract shall contain payment provisions for
210 energy and capacity which are based upon the utility’s
211 equivalent cost-recovery rate for projects constructed pursuant
212 to s. 366.92(4)
full avoided costs, as defined in s. 366.051;
213 however, capacity payments are not required if, due to the
214 operational characteristics of the renewable energy generator or
215 the anticipated peak and off-peak availability and capacity
216 factor of the utility’s avoided unit, the producer is unlikely
217 to provide any capacity value to the utility or the electric
218 grid during the contract term. Each contract must provide a
219 contract term of at least 10 years. Prudent and reasonable costs
220 associated with a renewable energy contract shall be recovered
221 from the ratepayers of the contracting utility, without
222 differentiation among customer classes, through the appropriate
223 cost-recovery clause mechanism administered by the commission.
224 Section 3. Subsection (1) and paragraph (b) of subsection
225 (2) of section 377.806, Florida Statutes, are amended to read:
226 377.806 Solar Energy System Incentives Program.—
227 (1) PURPOSE.—The Solar Energy System Incentives Program is
228 established within the commission to provide financial
229 incentives for the purchase and installation of solar energy
230 systems. Any resident of the state who purchases and installs a
231 new solar energy system of 2 kilowatts or larger for a solar
232 photovoltaic system, a solar energy system that provides at
233 least 50 percent of a building’s hot water consumption for a
234 solar thermal system, or a solar thermal pool heater, from July
235 1, 2006, through June 30, 2015 2010, is eligible for a rebate on
236 a portion of the purchase price of that solar energy system.
237 (2) SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.—
238 (b) Rebate amounts.—The rebate amount shall be set at $2.50
239 $4 per watt for the first year, $2 per watt for the second and
240 third years, and $1.50 per watt for each subsequent year, based
241 on the total wattage rating of the system. The maximum allowable
242 rebate per solar photovoltaic system installation shall be as
244 1. Twenty thousand dollars for a residence.
245 2. One hundred thousand dollars for a place of business, a
246 publicly owned or operated facility, or a facility owned or
247 operated by a private, not-for-profit organization, including
248 condominiums or apartment buildings.
249 Section 4. This act shall take effect July 1, 2010.