House Bill hb0305
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    Florida House of Representatives - 2002                 HB 305
        By Representative Paul
  1                      A bill to be entitled
  2         An act relating to generation and distribution
  3         of electricity; creating the "Florida Renewable
  4         Energy Act of 2002"; providing legislative
  5         findings and declarations; providing
  6         definitions; providing for authorized operation
  7         of cogeneration facilities under certain
  8         circumstances; requiring electric service
  9         providers to provide alternative metering to
10         certain customers; providing for agreements and
11         fees for alternative metering; providing
12         requirements and limitations on such fees;
13         specifying alternative measurements and
14         pricings of energy flow through such metering;
15         providing criteria for purchases of electricity
16         by service providers; specifying requirements
17         for distributed generation facilities;
18         authorizing the Florida Public Service
19         Commission to adopt rules specifying additional
20         standards and operational criteria; providing a
21         limitation; specifying absence of liability for
22         electric service providers and electric service
23         suppliers for certain interconnected
24         facilities; providing an effective date.
25
26  Be It Enacted by the Legislature of the State of Florida:
27
28         Section 1.  This act may be cited as the "Florida
29  Renewable Energy Act of 2002."
30         Section 2.  (1)  The Legislature finds that it is in
31  the public interest to:
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    Florida House of Representatives - 2002                 HB 305
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  1         (a)  Encourage private investment in renewable energy
  2  resources to expand environmentally friendly methods of
  3  generating electricity.
  4         (b)  Stimulate the economic growth of this state.
  5         (c)  Enhance the continued diversification of the
  6  energy resources used in this state.
  7         (2)  The Legislature further finds and declares that a
  8  program to provide distributed generation for eligible
  9  cogenerators is a way to encourage private investment in
10  renewable energy resources, stimulate in-state economic
11  growth, enhance the continued diversification of this state's
12  energy resource mix, and reduce interconnection and
13  administrative costs.
14         Section 3.  As used in this act:
15         (1)  "Bidirectional metering" means measuring the
16  amount of electricity supplied by an electric service provider
17  to a customer and the amount fed back to the electric service
18  provider by the customer's distributed generation facility
19  using the same meter.
20         (2)  "Cogeneration facility" means a facility, other
21  than a distributed generation facility, which produces
22  electric energy, steam, heat, or other forms of useful energy
23  which are used for industrial, commercial, heating, or cooling
24  purposes.
25         (3)  "Commission" means the Florida Public Service
26  Commission.
27         (4)  "Customer generator" means the owner and operator
28  of a distributed generation facility.
29         (5)  "Distributed generation facility" means a facility
30  owned and operated by a customer of an electric service
31  provider for the production of electrical energy that:
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  1         (a)  Uses a solar photovoltaic system, fuel cell, or
  2  wind turbine.
  3         (b)  Has a peak generating capacity of not more than
  4  10kW for a residential application and 100kW for a commercial
  5  application.
  6         (c)  Is located on the customer's premises.
  7         (d)  Operates in parallel with the electric service
  8  provider's distribution facilities.
  9         (e)  Is connected to the electric service provider's
10  distribution system on either side of the electric service
11  provider's meter.
12         (f)  Is intended primarily to offset part or all of the
13  customer generator's requirements for electricity.
14         (6)  "Electric service provider" means any electric
15  utility, electric membership corporation, or municipal
16  electric utility engaged in the business of distributing
17  electricity to retail electric customers in this state.
18         (7)  "Electric service supplier" means any electric
19  utility furnishing wholesale electric service, any municipal
20  electric utility, or cooperative.
21         (8)  "Electric utility" means any retail supplier of
22  electricity whose rates are fixed by the commission.
23         (9)  "Municipal electric utility" means a city or town
24  that owns or operates an electric utility.
25         (10)  "Person" means a natural person, corporation,
26  trust, partnership, incorporated or unincorporated
27  association, or any other legal entity.
28         (11)  "Renewable energy sources" means energy supplied
29  from technologies, including, but not limited to, photovoltaic
30  devices, biomass, fuel cells, geothermal, wind, methane from
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  1  wastewater treatment, and other sources as may be approved
  2  pursuant to a Florida Green Pricing Accreditation Program.
  3         Section 4.  (1)  Any person may operate a cogeneration
  4  facility without being subject to the jurisdiction or
  5  regulation of the commission if such person uses all of the
  6  electric energy, steam, or other form of useful energy
  7  produced at such cogeneration facility.  The electric energy
  8  shall not be sold to any other person except as provided in
  9  subsection (2).
10         (2)  Any person may operate a cogeneration facility and
11  sell any excess electric energy to an electric service
12  supplier without being subject to the jurisdiction or
13  regulation of the commission, provided, nothing in this act
14  shall exempt a person from compliance with federal law.
15         Section 5.  (1)  An electric service provider shall:
16         (a)  Make bidirectional metering or single directional
17  metering available to customer generators depending on how the
18  distributed generation facility is connected to the
19  distribution system of the electric service provider.
20         (b)  Enter into a written agreement with the customer
21  generator to charge the customer generator the rate
22  established by the commission in the case of an electric
23  utility, or the appropriate governing body in the case of any
24  other electric service provider or electric supplier, for
25  metering services.
26         (2)  In setting the fees for metering service, the
27  commission, or the appropriate governing body in the case of
28  any other electric service provider or electric service
29  supplier, shall include the direct costs associated with
30  interconnecting or administering metering services or
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  1  distributed generation facilities and shall not allocate such
  2  costs among the utility's entire customer base.
  3         (3)  In establishing such a fee for metering services,
  4  the electric service provider shall not charge the customer
  5  generator any standby, capacity, interconnection, or other fee
  6  or charge, other than a monthly service charge, unless agreed
  7  to by the customer generator or approved by the commission in
  8  the case of an electric utility, or by the appropriate
  9  governing body in the case of any other electric service
10  provider or electric service supplier.
11         Section 6.  Consistent with the other provisions of
12  this act, energy flow shall be measured and paid for in the
13  following manner:
14         (1)  If a distributed generation facility is connected
15  to the electric service provider's distribution system on the
16  customer generator's side of the customer's meter, the
17  electric service provider shall measure the electricity
18  produced or consumed during the billing period, in accordance
19  with normal metering practices using bidirectional metering.
20         (a)  If the electricity supplied by the electric
21  service provider exceeds the electricity generated by the
22  customer's distributed generation facility, the excess
23  electricity shall be billed to the customer by the electric
24  service provider, in accordance with tariffs filed with the
25  commission; or
26         (b)  If the electricity generated by the customer's
27  distributed generation facility exceeds the electricity
28  supplied to the customer by the electric service provider, the
29  electric service provider shall:
30         1.  Bill the customer generator for the appropriate
31  customer charges for that billing period; and
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  1         2.  Credit the customer generator for the excess
  2  kilowatt-hours generated during the billing period at an
  3  agreed to rate as filed with the commission, with such
  4  kilowatt-hour credit appearing on the bill for the billing
  5  period.
  6         (2)(a)  If a distributed generation facility is
  7  connected to the electric service provider's distribution
  8  system on the electric service provider's side of a customer
  9  generator's meter, the electric service provider shall measure
10  the electricity produced or consumed during the billing
11  period, in accordance with normal metering practices using
12  single directional metering and charge the customer generator
13  a minimum monthly fee as established in section 5.
14         (b)  If electricity is generated by the customer
15  generator's distributed generation facility for the billing
16  period, the customer generator shall be compensated at an
17  agreed to rate as filed with the commission.
18         Section 7.  (1)  An electric service provider shall
19  purchase energy from an eligible customer generator as
20  specified in section 6 solely on a first come, first served
21  basis until the cumulative generating capacity of all
22  renewable energy sources equals to 0.2 percent of the
23  utility's annual peak demand in the previous year, provided,
24  no electric service provider shall be required to purchase
25  such energy at a price above avoided energy cost unless that
26  amount of energy has been subscribed under any renewable
27  energy program.
28         (2)  Once the capacity is subscribed, an electric
29  service provider may purchase energy from an eligible customer
30  generator at a cost of energy as defined for a utility by the
31  commission in the case of an electric utility, or by the
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  1  appropriate governing body in the case of any other electric
  2  service provider or electric supplier.
  3         (3)  A distributed generation facility used by a
  4  customer generator shall include, at the customer's own
  5  expense, all equipment necessary to meet applicable safety,
  6  power quality, and interconnection requirements established by
  7  the National Electrical Code, National Electrical Safety Code,
  8  the Institute of Electrical and Electronics Engineers, and
  9  Underwriters Laboratories.
10         (4)  The commission in the case of an electric utility,
11  or the appropriate governing body in the case of other
12  electric service providers or electric service suppliers,
13  after appropriate notice and opportunity for comment, may
14  adopt by rule additional safety, power quality, and
15  interconnection requirements for customer generators that the
16  commission or governing body determines are necessary to
17  protect public safety and system reliability.
18         (5)  An electric service provider may not require a
19  customer generator whose distributed generation facility meets
20  the standards in subsections (3) and (4) to comply with
21  additional safety or performance standards, perform or pay for
22  additional tests, or purchase additional liability insurance.
23         (6)  No electric service provider or electric service
24  supplier shall be liable to any person, directly or
25  indirectly, for loss of property, injury, or death resulting
26  from the interconnection of a cogeneration facility or a
27  distributed generation facility to the electrical system of
28  the provider or supplier.
29         Section 8.  This act shall take effect upon becoming a
30  law.
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  2                          HOUSE SUMMARY
  3
      Creates the Florida Renewable Energy Act of 2002 to
  4    provide for interconnecting retail electric customers'
      cogeneration facilities and distributed generation
  5    facilities with electric systems of electric service
      providers and electric service suppliers and for metering
  6    and payment of electricity produced by a customer's
      cogeneration or distributed generation facility. See bill
  7    for details.
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