HB 1397

1
A bill to be entitled
2An act relating to alternative energy; creating the
3distributed alternative energy generation development
4initiative; providing legislative findings and intent;
5providing definitions; authorizing certain state agencies,
6universities, and private sector entities to develop and
7operate distributed alternative energy generation pilot
8projects; requiring electric utilities to provide pilot
9projects with interconnection, net metering, transmission
10and distribution, and backup and standby power services;
11specifying requirements and fees for such services;
12providing for pilot projects to receive credit for certain
13energy generation; requiring the Public Service Commission
14and the Department of Environmental Protection to adopt
15specified rules; requiring the department to submit an
16annual report to the Governor and the Legislature;
17providing an effective date.
18
19Be It Enacted by the Legislature of the State of Florida:
20
21     Section 1.  Distributed alternative energy generation and
22development initiative.--
23     (1)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature
24finds that the state has a vital interest in the development of
25distributed alternative energy generation and that the
26development of distributed alternative energy generation can be
27encouraged through limited scope pilot projects between state
28agencies, the private sector, and certain qualifying public
29research universities. It is the intent of the Legislature to
30promote the development of distributed alternative energy
31generation by encouraging innovation and investment in
32distributed alternative energy generation and pilot projects and
33allowing a transitional period in which new and emerging
34technologies are subject to reduced or different regulatory
35constraints than those applicable to traditional energy
36suppliers.
37     (2)  DEFINITIONS.--As used in this section, the term:
38     (a)  "Alternative energy" means alternatives to coal and
39oil as energy sources used to produce electrical power or
40efficiency and conservation methods that can be used to minimize
41the need for energy sources used to produce electrical power,
42that uses one or more of the following fuels, energy sources, or
43energy-saving mechanisms: solar water heat, solar space heat,
44solar thermal electric, process heat, photovoltaics, landfill
45gas, wind, biomass, hydroelectric, ocean, geothermal,
46groundwater heat exchange, carbon dioxide-free hydrogen, solid
47waste, combined heat and power cogeneration, coal gasification,
48anaerobic digestion, distributed generation technologies,
49combined cycle natural gas, nuclear, biofuels such as
50biokerosene and ethanol, demand side management, light emitting
51diode and natural lighting, and other energy-efficient
52resources.
53     (b)  "Distributed alternative energy generation pilot
54project" or "pilot project" means a collaboration, partnership,
55or joint venture between a state agency, a research university,
56and a private sector entity to build and operate a distributed
57alternative energy generation facility to produce energy for the
58use of the pilot project participants and the electric utility
59serving the pilot project participants.
60     (c)  "Behind-the-meter" means the interconnection of an
61energy generating unit is located behind a retail customer meter
62on the customer side and requires no additional electric
63utility-owned transmission or distribution facilities for the
64delivery of energy.
65     (d)  "Electric utility" means any municipal electric
66utility, investor-owned electric utility, or rural electric
67cooperative which owns, maintains, or operates an electric
68generation, transmission, or distribution system within the
69state.
70     (e)  "Research university" means a member of the State
71University System that has been designated as a
72doctoral/research university-extensive by the Carnegie
73Foundation and is served by a municipal electric utility.
74     (3)  ALTERNATIVE ENERGY PILOT PROJECTS.--State agencies and
75research universities that are located in the same community and
76served by an electric utility are authorized to enter into
77partnerships and other similar enterprises with private sector
78entities to develop and operate distributed alternative energy
79generation pilot projects. The following provisions shall apply
80to such pilot projects:
81     (a)  Interconnection service.--An electric utility serving
82the community in which a pilot project is located shall provide
83interconnection service to the pilot project. Interconnection
84services shall be offered based upon the standards developed by
85the Institute of Electrical and Electronic Engineers and
86incorporated in IEEE Standard 1547 for Interconnecting
87Distributed Resources with Electric Power Systems, as they may
88be amended, at a fee not to exceed the electric utility's
89incremental cost of providing such service. All projects
90classified as IEEE Standard 1547.3 Distributed Resource Class 1
91power shall be behind-the-meter.
92     (b)  Net metering service.--An electric utility serving the
93community in which a pilot project is located shall provide net
94metering service to the pilot project. The electric utility
95shall provide to the pilot project meters that subtract the
96amount of energy generated from the amount of energy consumed.
97The pilot project shall receive credit at the full retail rate
98for energy generated by the pilot project. If the pilot project
99generates more energy than it consumes during a billing cycle,
100the serving municipal utility shall pay the pilot project for
101the excess generation at the full avoided cost under s. 366.051.
102     (c)  Transmission and distribution service.--An electric
103utility serving the community in which a pilot project is
104located shall provide transmission and distribution service to
105enable the pilot project to transmit energy to another
106participating pilot project facility at a fee not to exceed the
107serving municipal electric utility's incremental cost of
108providing such service.
109     (d)  Backup and standby power service.--If a behind-the-
110meter arrangement is not used, the electric utility serving the
111community in which a pilot project is located shall provide
112backup and standby power service to the pilot project at a fee
113not to exceed the electric utility's commercial rate for such
114service.
115     (4)  RULES.--The Public Service Commission and the
116Department of Environmental Protection shall adopt rules to
117implement and administer this section, including a reporting
118requirement for pilot project participants.
119     (5)  REPORT.--The Department of Environmental Protection
120shall submit an annual report of the activities of the pilot
121project to the Governor, the President of the Senate, and the
122Speaker of the House of Representatives by July 1 of each year,
123beginning on July 1, 2009.
124     Section 2.  This act shall take effect July 1, 2008.


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