April 02, 2020
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HB 1471

A bill to be entitled
2An act relating to renewable energy; amending s. 366.92,
3F.S.; revising legislative intent regarding the state's
4renewable energy policy; deleting provisions requiring
5that the Public Service Commission adopt rules for a
6renewable portfolio standard; requiring that the
7commission provide for full cost recovery, including a
8return on equity, for certain renewable energy projects;
9requiring the commission to approve certain renewable
10energy projects; creating s. 366.921, F.S.; providing
11legislative findings; requiring that a petition filed by a
12provider for approval of a facility producing a Florida
13renewable energy resource comply with certain criteria;
14specifying the criteria to be considered by the commission
15in approving a petition for such facility; requiring that
16the commission's final order approving a facility include
17authorization for annual cost recovery; requiring
18providers to file a report with commission; providing
19report requirements; providing penalties for failure to
20file the report; providing exemptions from determination
21of need requirements; providing that certain legislative
22determinations constitute a public need and necessity and
23fulfill certain determination of need requirements;
24providing for applicants meeting certain criteria to
25obtain a final order of certification; amending s.
26403.503, F.S.; redefining the term "electrical power
27plant" for purposes of the Florida Electrical Power Plant
28Siting Act to exclude solar electrical generating
29facilities; providing an effective date.
31Be It Enacted by the Legislature of the State of Florida:
33     Section 1.  Section 366.92, Florida Statutes, is amended to
35     366.92  Florida renewable energy policy.-
36     (1)  In order to stimulate the state's economy, encourage
37businesses to invest in clean technologies, and foster research,
38development, manufacturing, construction, and jobs in new and
39renewable energy, it is the intent of the Legislature to promote
40the development of renewable energy; protect the economic
41viability of Florida's existing renewable energy facilities;
42diversify the types of fuel used to generate electricity in
43Florida; lessen Florida's dependence on natural gas and fuel oil
44for the production of electricity; minimize the volatility of
45fuel costs; encourage investment within the state; improve
46environmental conditions by minimizing water consumption and
47reducing carbon and other greenhouse gas emissions emitted in
48this state; and, at the same time, minimize the costs of power
49supply to electric utilities and their customers.
50     (2)  As used in this section, the term:
51     (a)  "Florida renewable energy resources" means renewable
52energy, as defined in s. 377.803, that is produced in Florida.
53     (b)  "Provider" means a "utility" as defined in s.
55     (c)  "Renewable energy" means renewable energy as defined
56in s. 366.91(2)(d).
57     (d)  "Renewable energy credit" or "REC" means a product
58that represents the unbundled, separable, renewable attribute of
59renewable energy produced in Florida and is equivalent to 1
60megawatt-hour of electricity generated by a source of renewable
61energy located in Florida.
62     (e)  "Renewable portfolio standard" or "RPS" means the
63minimum percentage of total annual retail electricity sales by a
64provider to consumers in Florida that shall be supplied by
65renewable energy produced in Florida.
66     (3)  The commission shall adopt rules for a renewable
67portfolio standard requiring each provider to supply renewable
68energy to its customers directly, by procuring, or through
69renewable energy credits. In developing the RPS rule, the
70commission shall consult the Department of Environmental
71Protection and the Florida Energy and Climate Commission. The
72rule shall not be implemented until ratified by the Legislature.
73The commission shall present a draft rule for legislative
74consideration by February 1, 2009.
75     (a)  In developing the rule, the commission shall evaluate
76the current and forecasted levelized cost in cents per kilowatt
77hour through 2020 and current and forecasted installed capacity
78in kilowatts for each renewable energy generation method through
80     (b)  The commission's rule:
81     1.  Shall include methods of managing the cost of
82compliance with the renewable portfolio standard, whether
83through direct supply or procurement of renewable power or
84through the purchase of renewable energy credits. The commission
85shall have rulemaking authority for providing annual cost
86recovery and incentive-based adjustments to authorized rates of
87return on common equity to providers to incentivize renewable
88energy. Notwithstanding s. 366.91(3) and (4), upon the
89ratification of the rules developed pursuant to this subsection,
90the commission may approve projects and power sales agreements
91with renewable power producers and the sale of renewable energy
92credits needed to comply with the renewable portfolio standard.
93In the event of any conflict, this subparagraph shall supersede
94s. 366.91(3) and (4). However, nothing in this section shall
95alter the obligation of each public utility to continuously
96offer a purchase contract to producers of renewable energy.
97     2.  Shall provide for appropriate compliance measures and
98the conditions under which noncompliance shall be excused due to
99a determination by the commission that the supply of renewable
100energy or renewable energy credits was not adequate to satisfy
101the demand for such energy or that the cost of securing
102renewable energy or renewable energy credits was cost
104     3.  May provide added weight to energy provided by wind and
105solar photovoltaic over other forms of renewable energy, whether
106directly supplied or procured or indirectly obtained through the
107purchase of renewable energy credits.
108     4.  Shall determine an appropriate period of time for which
109renewable energy credits may be used for purposes of compliance
110with the renewable portfolio standard.
111     5.  Shall provide for monitoring of compliance with and
112enforcement of the requirements of this section.
113     6.  Shall ensure that energy credited toward compliance
114with the requirements of this section is not credited toward any
115other purpose.
116     7.  Shall include procedures to track and account for
117renewable energy credits, including ownership of renewable
118energy credits that are derived from a customer-owned renewable
119energy facility as a result of any action by a customer of an
120electric power supplier that is independent of a program
121sponsored by the electric power supplier.
122     8.  Shall provide for the conditions and options for the
123repeal or alteration of the rule in the event that new
124provisions of federal law supplant or conflict with the rule.
125     (c)  Beginning on April 1 of the year following final
126adoption of the commission's renewable portfolio standard rule,
127each provider shall submit a report to the commission describing
128the steps that have been taken in the previous year and the
129steps that will be taken in the future to add renewable energy
130to the provider's energy supply portfolio. The report shall
131state whether the provider was in compliance with the renewable
132portfolio standard during the previous year and how it will
133comply with the renewable portfolio standard in the upcoming
135     (3)(a)(4)  In order to promote and facilitate the
136development of clean energy industry in this state demonstrate
137the feasibility and viability of clean energy systems, the
138commission shall provide for full cost recovery under the
139environmental cost-recovery clause of all reasonable and prudent
140costs incurred by a provider for renewable energy projects that
141result in a net decrease of are zero greenhouse gas emitted in
142this state emitting at the point of generation, up to a total of
143110 megawatts statewide, and for which the provider has secured
144necessary land, zoning permits, and transmission rights within
145the state.
146     (b)  In addition to the full cost recovery for such
147renewable energy projects, a return on equity of not less than
14850 basis points above the top of the range of the provider's
149last authorized rate of return on equity approved by the
150commission for energy projects shall be approved and provided
151for such renewable energy projects if a majority value of the
152energy-producing components incorporated into such projects are
153manufactured or assembled within this state.
154     (c)  Such costs shall be deemed reasonable and prudent for
155purposes of cost recovery so long as the provider has
156demonstrated that the renewable energy project meets the
157criteria in s. 366.921(3)(a) and used reasonable and customary
158industry practices in the design, procurement, and construction
159of the project in a cost-effective manner appropriate to the
160location of the facility. The provider shall report to the
161commission as part of the cost-recovery proceedings the
162construction costs, in-service costs, operating and maintenance
163costs, hourly energy production of the renewable energy project,
164environmental benefits, and estimated fuel savings attributable
165to the facility and any other information deemed relevant by the
166commission. Any provider constructing a clean energy facility
167pursuant to this section shall file for cost recovery no later
168than July 1, 2009.
169     (4)  Pursuant to the approval process under s. 366.921, the
170commission shall approve a total of 700 megawatts of renewable
171energy projects for the years 2010, 2011, and 2012, with up to a
172total of 300 megawatts approved in 2010 and up to an additional
173200 megawatts approved annually in 2011 and 2012, as part of new
174renewable energy projects and an additional 35 megawatts, with
175up to 15 megawatts annually for 2010 and up to 10 megawatts
176annually for 2011 and 2012, for rooftop or area lighting solar
177energy applications in addition to megawatts attributable to
178renewable energy projects approved by the commission for cost
179recovery before January 1, 2010. Any megawatts for renewable
180energy projects designated for approval for a specific year that
181remain available at the end of the calendar year shall be
182carried forward to the succeeding year.
183     (5)  Each municipal electric utility and rural electric
184cooperative shall develop standards for the promotion,
185encouragement, and expansion of the use of renewable energy
186resources and energy conservation and efficiency measures. On or
187before April 1, 2009, and annually thereafter, each municipal
188electric utility and electric cooperative shall submit to the
189commission a report that identifies such standards.
190     (6)  Nothing in This section does not shall be construed to
191impede or impair terms and conditions of existing contracts.
192     (7)  The commission may adopt rules to administer and
193implement the provisions of this section.
194     Section 2.  Section 366.921, Florida Statutes, is created
195to read:
196     366.921  Renewable energy; approval process.-
197     (1)  The Legislature finds that the goals stated in s.
198366.92(1) shall be accomplished by fostering the expansion and
199development of Florida renewable energy resources. Providers of
200Florida renewable energy resources must acquire commission
201approval before the construction, licensing, and operation of a
202facility producing such resources or the purchase of capacity or
203energy from a facility producing such resources. This
204requirement does not apply to purchases of capacity or energy
205under commission-approved standard offer contracts or tariffs.
206Any petition filed by a provider for approval of a facility
207producing a Florida renewable energy resource must meet the
208criteria specified in this section.
209     (2)  Notwithstanding s. 403.519, the Legislature finds that
210there is a need for new Florida renewable energy resources
211consistent with the goals stated in s. 366.92(1). This
212legislative finding shall serve as the need determination
213required under s. 403.519 and as the commission's agency report
214under s. 403.507(4)(a).
215     (3)  Upon the filing by a provider of a petition for
216approval of a facility producing a Florida renewable energy
217resource, the commission shall schedule a formal administrative
218hearing within 10 days after the filing of the petition and vote
219on the petition within 90 days after such filing.
220     (4)  Before approving the petition, the commission shall
221consider whether the:
222     (a)  Proposal for the facility requires the use of
223reasonable and customary industry practices in the design,
224engineering, and proposed construction of the facility that is
225appropriate to the proposed technology and location of the
227     (b)  Entity, including a provider, which would engineer,
228design, and construct the proposed facility has the requisite
229technical and financial qualifications, expertise, and
231     (c)  Entity, including a provider, which would operate the
232proposed facility has the requisite technical qualifications,
233expertise, and capability.
234     (d)  Proposed production of the Florida renewable energy
235resource will have a positive impact on the environment,
236including the reduction of greenhouse gas emissions in the
237state, measured at the point of generation.
238     (e)  Proposed production of the Florida renewable energy
239resource will result in local economic benefits, including job
240creation, for the state's economy.
241     (f)  Proposed Florida renewable energy resource will
242enhance the fuel diversity of the provider.
243     (g)  Proposed facility producing the Florida renewable
244energy resource will minimize or avoid the incremental use of
245water resources at the project site in the production of
246renewable power.
247     (5)  The commission's final order approving a facility
248producing a Florida renewable energy resource shall include
249express authorization for annual cost recovery pursuant to ss.
250366.8255 and 366.92.
251     (6)  A provider that receives approval from the commission
252for a specific renewable energy project pursuant to this section
253shall file a report with the commission within 1 year after the
254date of the order reflecting such approval. Prior to the
255expiration of the time for filing the report, a provider may
256request an extension of time up to 6 months to file such report
257and the commission shall grant such request if the provider
258demonstrates good cause for the extension. The report shall
259summarize the status of the project, including confirmation that
260construction of the project has commenced, and provide all
261relevant supporting documentation. If a provider fails to timely
262file such report, the approval of the project granted by the
263commission shall be vacated by operation of law and the
264megawatts attributable to such project shall be restored as part
265of the total megawatts available for renewable energy projects
266under s. 366.92(4).
267     (7)  The Legislature finds that there is a need for all
268proposed Florida renewable energy resources for which an
269application for certification has been filed by a provider and
270is pending under part II of chapter 403, as of the effective
271date of this act, and that such proposed Florida renewable
272energy resources are exempt from the requirement to obtain a
273determination of need pursuant to this section and s. 403.519.
274Florida renewable energy resources for which an application for
275certification has been filed by a provider and is pending under
276part II of chapter 403, as of the effective date of this act,
277are determined by the Legislature to meet the electrical needs
278of the state in an orderly, reliable, and timely fashion, to
279fulfill the provisions of s. 403.519(3), and to otherwise be in
280the public interest. The Legislature's determination of need
281reflected in this subsection creates a presumption of public
282need and necessity which shall not be raised in any other forum
283or in the review of proceedings in such other forum and shall
284substitute for the commission's report required by s.
285403.507(4). Notwithstanding any amendment to s. 403.503, all
286proposed Florida renewable energy resources for which an
287application for certification has been filed by a provider and
288is pending under part II of chapter 403, as of the effective
289date of this act, may, at the applicant's option, proceed to
290obtain a final order of certification under part II of chapter
292     Section 3.  Subsection (14) of section 403.503, Florida
293Statutes, is amended to read:
294     403.503  Definitions relating to Florida Electrical Power
295Plant Siting Act.-As used in this act:
296     (14)  "Electrical power plant" means, for the purpose of
297certification, any steam or solar electrical generating facility
298using any process or fuel, including nuclear materials, except
299that this term does not include any steam or solar electrical
300generating facility of less than 75 megawatts in capacity or any
301solar electrical generating facility of any sized capacity
302unless the applicant for such a facility elects to apply for
303certification under this act. This term also includes the site;
304all associated facilities that will be owned by the applicant
305that are physically connected to the site; all associated
306facilities that are indirectly connected to the site by other
307proposed associated facilities that will be owned by the
308applicant; and associated transmission lines that will be owned
309by the applicant which connect the electrical power plant to an
310existing transmission network or rights-of-way to which the
311applicant intends to connect. At the applicant's option, this
312term may include any offsite associated facilities that will not
313be owned by the applicant; offsite associated facilities that
314are owned by the applicant but that are not directly connected
315to the site; any proposed terminal or intermediate substations
316or substation expansions connected to the associated
317transmission line; or new transmission lines, upgrades, or
318improvements of an existing transmission line on any portion of
319the applicant's electrical transmission system necessary to
320support the generation injected into the system from the
321proposed electrical power plant.
322     Section 4.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.
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