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