HB 1471

1	A bill to be entitled
2	An act relating to renewable energy; amending s. 366.92,
3	F.S.; revising legislative intent regarding the state's
4	renewable energy policy; deleting provisions requiring
5	that the Public Service Commission adopt rules for a
6	renewable portfolio standard; requiring that the
7	commission provide for full cost recovery, including a
8	return on equity, for certain renewable energy projects;
9	requiring the commission to approve certain renewable
10	energy projects; creating s. 366.921, F.S.; providing
11	legislative findings; requiring that a petition filed by a
12	provider for approval of a facility producing a Florida
13	renewable energy resource comply with certain criteria;
14	specifying the criteria to be considered by the commission
15	in approving a petition for such facility; requiring that
16	the commission's final order approving a facility include
17	authorization for annual cost recovery; requiring
18	providers to file a report with commission; providing
19	report requirements; providing penalties for failure to
20	file the report; providing exemptions from determination
21	of need requirements; providing that certain legislative
22	determinations constitute a public need and necessity and
23	fulfill certain determination of need requirements;
24	providing for applicants meeting certain criteria to
25	obtain a final order of certification; amending s.
26	403.503, F.S.; redefining the term "electrical power
27	plant" for purposes of the Florida Electrical Power Plant
28	Siting Act to exclude solar electrical generating
29	facilities; providing an effective date.
30
31	Be It Enacted by the Legislature of the State of Florida:
32
33	Section 1.  Section 366.92, Florida Statutes, is amended to
34	read:
35	366.92  Florida renewable energy policy.-
36	(1)  In order to stimulate the state's economy, encourage
37	businesses to invest in clean technologies, and foster research,
38	development, manufacturing, construction, and jobs in new and
39	renewable energy, it is the intent of the Legislature to promote
40	the development of renewable energy; protect the economic
41	viability of Florida's existing renewable energy facilities;
42	diversify the types of fuel used to generate electricity in
43	Florida; lessen Florida's dependence on natural gas and fuel oil
44	for the production of electricity; minimize the volatility of
45	fuel costs; encourage investment within the state; improve
46	environmental conditions by minimizing water consumption and
47	reducing carbon and other greenhouse gas emissions emitted in
48	this state; and, at the same time, minimize the costs of power
49	supply to electric utilities and their customers.
50	(2)  As used in this section, the term:
51	(a)  "Florida renewable energy resources" means renewable
52	energy, as defined in s. 377.803, that is produced in Florida.
53	(b)  "Provider" means a "utility" as defined in s.
54	366.8255(1)(a).
55	(c)  "Renewable energy" means renewable energy as defined
56	in s. 366.91(2)(d).
57	(d)  "Renewable energy credit" or "REC" means a product
58	that represents the unbundled, separable, renewable attribute of
59	renewable energy produced in Florida and is equivalent to 1
60	megawatt-hour of electricity generated by a source of renewable
61	energy located in Florida.
62	(e)  "Renewable portfolio standard" or "RPS" means the
63	minimum percentage of total annual retail electricity sales by a
64	provider to consumers in Florida that shall be supplied by
65	renewable energy produced in Florida.
66	(3)  The commission shall adopt rules for a renewable
67	portfolio standard requiring each provider to supply renewable
68	energy to its customers directly, by procuring, or through
69	renewable energy credits. In developing the RPS rule, the
70	commission shall consult the Department of Environmental
71	Protection and the Florida Energy and Climate Commission. The
72	rule shall not be implemented until ratified by the Legislature.
73	The commission shall present a draft rule for legislative
74	consideration by February 1, 2009.
75	(a)  In developing the rule, the commission shall evaluate
76	the current and forecasted levelized cost in cents per kilowatt
77	hour through 2020 and current and forecasted installed capacity
78	in kilowatts for each renewable energy generation method through
79	2020.
80	(b)  The commission's rule:
81	1.  Shall include methods of managing the cost of
82	compliance with the renewable portfolio standard, whether
83	through direct supply or procurement of renewable power or
84	through the purchase of renewable energy credits. The commission
85	shall have rulemaking authority for providing annual cost
86	recovery and incentive-based adjustments to authorized rates of
87	return on common equity to providers to incentivize renewable
88	energy. Notwithstanding s. 366.91(3) and (4), upon the
89	ratification of the rules developed pursuant to this subsection,
90	the commission may approve projects and power sales agreements
91	with renewable power producers and the sale of renewable energy
92	credits needed to comply with the renewable portfolio standard.
93	In the event of any conflict, this subparagraph shall supersede
94	s. 366.91(3) and (4). However, nothing in this section shall
95	alter the obligation of each public utility to continuously
96	offer a purchase contract to producers of renewable energy.
97	2.  Shall provide for appropriate compliance measures and
98	the conditions under which noncompliance shall be excused due to
99	a determination by the commission that the supply of renewable
100	energy or renewable energy credits was not adequate to satisfy
101	the demand for such energy or that the cost of securing
102	renewable energy or renewable energy credits was cost
103	prohibitive.
104	3.  May provide added weight to energy provided by wind and
105	solar photovoltaic over other forms of renewable energy, whether
106	directly supplied or procured or indirectly obtained through the
107	purchase of renewable energy credits.
108	4.  Shall determine an appropriate period of time for which
109	renewable energy credits may be used for purposes of compliance
110	with the renewable portfolio standard.
111	5.  Shall provide for monitoring of compliance with and
112	enforcement of the requirements of this section.
113	6.  Shall ensure that energy credited toward compliance
114	with the requirements of this section is not credited toward any
115	other purpose.
116	7.  Shall include procedures to track and account for
117	renewable energy credits, including ownership of renewable
118	energy credits that are derived from a customer-owned renewable
119	energy facility as a result of any action by a customer of an
120	electric power supplier that is independent of a program
121	sponsored by the electric power supplier.
122	8.  Shall provide for the conditions and options for the
123	repeal or alteration of the rule in the event that new
124	provisions of federal law supplant or conflict with the rule.
125	(c)  Beginning on April 1 of the year following final
126	adoption of the commission's renewable portfolio standard rule,
127	each provider shall submit a report to the commission describing
128	the steps that have been taken in the previous year and the
129	steps that will be taken in the future to add renewable energy
130	to the provider's energy supply portfolio. The report shall
131	state whether the provider was in compliance with the renewable
132	portfolio standard during the previous year and how it will
133	comply with the renewable portfolio standard in the upcoming
134	year.
135	(3)(a)(4)  In order to promote and facilitate the
136	development of clean energy industry in this state demonstrate
137	the feasibility and viability of clean energy systems, the
138	commission shall provide for full cost recovery under the
139	environmental cost-recovery clause of all reasonable and prudent
140	costs incurred by a provider for renewable energy projects that
141	result in a net decrease of are zero greenhouse gas emitted in
142	this state emitting at the point of generation, up to a total of
143	110 megawatts statewide, and for which the provider has secured
144	necessary land, zoning permits, and transmission rights within
145	the state.
146	(b)  In addition to the full cost recovery for such
147	renewable energy projects, a return on equity of not less than
148	50 basis points above the top of the range of the provider's
149	last authorized rate of return on equity approved by the
150	commission for energy projects shall be approved and provided
151	for such renewable energy projects if a majority value of the
152	energy-producing components incorporated into such projects are
153	manufactured or assembled within this state.
154	(c)  Such costs shall be deemed reasonable and prudent for
155	purposes of cost recovery so long as the provider has
156	demonstrated that the renewable energy project meets the
157	criteria in s. 366.921(3)(a) and used reasonable and customary
158	industry practices in the design, procurement, and construction
159	of the project in a cost-effective manner appropriate to the
160	location of the facility. The provider shall report to the
161	commission as part of the cost-recovery proceedings the
162	construction costs, in-service costs, operating and maintenance
163	costs, hourly energy production of the renewable energy project,
164	environmental benefits, and estimated fuel savings attributable
165	to the facility and any other information deemed relevant by the
166	commission. Any provider constructing a clean energy facility
167	pursuant to this section shall file for cost recovery no later
168	than July 1, 2009.
169	(4)  Pursuant to the approval process under s. 366.921, the
170	commission shall approve a total of 700 megawatts of renewable
171	energy projects for the years 2010, 2011, and 2012, with up to a
172	total of 300 megawatts approved in 2010 and up to an additional
173	200 megawatts approved annually in 2011 and 2012, as part of new
174	renewable energy projects and an additional 35 megawatts, with
175	up to 15 megawatts annually for 2010 and up to 10 megawatts
176	annually for 2011 and 2012, for rooftop or area lighting solar
177	energy applications in addition to megawatts attributable to
178	renewable energy projects approved by the commission for cost
179	recovery before January 1, 2010. Any megawatts for renewable
180	energy projects designated for approval for a specific year that
181	remain available at the end of the calendar year shall be
182	carried forward to the succeeding year.
183	(5)  Each municipal electric utility and rural electric
184	cooperative shall develop standards for the promotion,
185	encouragement, and expansion of the use of renewable energy
186	resources and energy conservation and efficiency measures. On or
187	before April 1, 2009, and annually thereafter, each municipal
188	electric utility and electric cooperative shall submit to the
189	commission a report that identifies such standards.
190	(6)  Nothing in This section does not shall be construed to
191	impede or impair terms and conditions of existing contracts.
192	(7)  The commission may adopt rules to administer and
193	implement the provisions of this section.
194	Section 2.  Section 366.921, Florida Statutes, is created
195	to read:
196	366.921  Renewable energy; approval process.-
197	(1)  The Legislature finds that the goals stated in s.
198	366.92(1) shall be accomplished by fostering the expansion and
199	development of Florida renewable energy resources. Providers of
200	Florida renewable energy resources must acquire commission
201	approval before the construction, licensing, and operation of a
202	facility producing such resources or the purchase of capacity or
203	energy from a facility producing such resources. This
204	requirement does not apply to purchases of capacity or energy
205	under commission-approved standard offer contracts or tariffs.
206	Any petition filed by a provider for approval of a facility
207	producing a Florida renewable energy resource must meet the
208	criteria specified in this section.
209	(2)  Notwithstanding s. 403.519, the Legislature finds that
210	there is a need for new Florida renewable energy resources
211	consistent with the goals stated in s. 366.92(1). This
212	legislative finding shall serve as the need determination
213	required under s. 403.519 and as the commission's agency report
214	under s. 403.507(4)(a).
215	(3)  Upon the filing by a provider of a petition for
216	approval of a facility producing a Florida renewable energy
217	resource, the commission shall schedule a formal administrative
218	hearing within 10 days after the filing of the petition and vote
219	on the petition within 90 days after such filing.
220	(4)  Before approving the petition, the commission shall
221	consider whether the:
222	(a)  Proposal for the facility requires the use of
223	reasonable and customary industry practices in the design,
224	engineering, and proposed construction of the facility that is
225	appropriate to the proposed technology and location of the
226	facility.
227	(b)  Entity, including a provider, which would engineer,
228	design, and construct the proposed facility has the requisite
229	technical and financial qualifications, expertise, and
230	capability.
231	(c)  Entity, including a provider, which would operate the
232	proposed facility has the requisite technical qualifications,
233	expertise, and capability.
234	(d)  Proposed production of the Florida renewable energy
235	resource will have a positive impact on the environment,
236	including the reduction of greenhouse gas emissions in the
237	state, measured at the point of generation.
238	(e)  Proposed production of the Florida renewable energy
239	resource will result in local economic benefits, including job
240	creation, for the state's economy.
241	(f)  Proposed Florida renewable energy resource will
242	enhance the fuel diversity of the provider.
243	(g)  Proposed facility producing the Florida renewable
244	energy resource will minimize or avoid the incremental use of
245	water resources at the project site in the production of
246	renewable power.
247	(5)  The commission's final order approving a facility
248	producing a Florida renewable energy resource shall include
249	express authorization for annual cost recovery pursuant to ss.
250	366.8255 and 366.92.
251	(6)  A provider that receives approval from the commission
252	for a specific renewable energy project pursuant to this section
253	shall file a report with the commission within 1 year after the
254	date of the order reflecting such approval. Prior to the
255	expiration of the time for filing the report, a provider may
256	request an extension of time up to 6 months to file such report
257	and the commission shall grant such request if the provider
258	demonstrates good cause for the extension. The report shall
259	summarize the status of the project, including confirmation that
260	construction of the project has commenced, and provide all
261	relevant supporting documentation. If a provider fails to timely
262	file such report, the approval of the project granted by the
263	commission shall be vacated by operation of law and the
264	megawatts attributable to such project shall be restored as part
265	of the total megawatts available for renewable energy projects
266	under s. 366.92(4).
267	(7)  The Legislature finds that there is a need for all
268	proposed Florida renewable energy resources for which an
269	application for certification has been filed by a provider and
270	is pending under part II of chapter 403, as of the effective
271	date of this act, and that such proposed Florida renewable
272	energy resources are exempt from the requirement to obtain a
273	determination of need pursuant to this section and s. 403.519.
274	Florida renewable energy resources for which an application for
275	certification has been filed by a provider and is pending under
276	part II of chapter 403, as of the effective date of this act,
277	are determined by the Legislature to meet the electrical needs
278	of the state in an orderly, reliable, and timely fashion, to
279	fulfill the provisions of s. 403.519(3), and to otherwise be in
280	the public interest. The Legislature's determination of need
281	reflected in this subsection creates a presumption of public
282	need and necessity which shall not be raised in any other forum
283	or in the review of proceedings in such other forum and shall
284	substitute for the commission's report required by s.
285	403.507(4). Notwithstanding any amendment to s. 403.503, all
286	proposed Florida renewable energy resources for which an
287	application for certification has been filed by a provider and
288	is pending under part II of chapter 403, as of the effective
289	date of this act, may, at the applicant's option, proceed to
290	obtain a final order of certification under part II of chapter
291	403.
292	Section 3.  Subsection (14) of section 403.503, Florida
293	Statutes, is amended to read:
294	403.503  Definitions relating to Florida Electrical Power
295	Plant Siting Act.-As used in this act:
296	(14)  "Electrical power plant" means, for the purpose of
297	certification, any steam or solar electrical generating facility
298	using any process or fuel, including nuclear materials, except
299	that this term does not include any steam or solar electrical
300	generating facility of less than 75 megawatts in capacity or any
301	solar electrical generating facility of any sized capacity
302	unless the applicant for such a facility elects to apply for
303	certification under this act. This term also includes the site;
304	all associated facilities that will be owned by the applicant
305	that are physically connected to the site; all associated
306	facilities that are indirectly connected to the site by other
307	proposed associated facilities that will be owned by the
308	applicant; and associated transmission lines that will be owned
309	by the applicant which connect the electrical power plant to an
310	existing transmission network or rights-of-way to which the
311	applicant intends to connect. At the applicant's option, this
312	term may include any offsite associated facilities that will not
313	be owned by the applicant; offsite associated facilities that
314	are owned by the applicant but that are not directly connected
315	to the site; any proposed terminal or intermediate substations
316	or substation expansions connected to the associated
317	transmission line; or new transmission lines, upgrades, or
318	improvements of an existing transmission line on any portion of
319	the applicant's electrical transmission system necessary to
320	support the generation injected into the system from the
321	proposed electrical power plant.
322	Section 4.  This act shall take effect upon becoming a law.

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