Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 2078
                                Barcode 830712                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                 Comm: UNFAV           .                                
                  04/04/2011           .                                

       The Committee on Communications, Energy, and Public Utilities
       (Altman) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 160 - 251
    4  and insert:
    5         (b)Each provider shall purchase renewable energy pursuant
    6  to a standard form contract for the purchase of renewable energy
    7  from different types of renewable energy facilities located in
    8  Florida.
    9         1.The price to be paid for renewable energy purchased
   10  through a standard form contract shall be expressed in a
   11  levelized, or constant, price per kilowatt hour for the term of
   12  the contract. The price shall be determined by a competitive
   13  auction conducted by an independent auction administrator
   14  engaged by the commission to ensure the objectivity and fairness
   15  of the auction. The provider shall reimburse the commission for
   16  the cost for the independent auction administrator, and the cost
   17  is recoverable by the provider through the environmental cost
   18  recovery clause.
   19         2.The commission shall set the terms and conditions of the
   20  standard form contract before such contract may be issued and
   21  shall establish procedures for the conduct of the auction
   22  provided for in this paragraph.
   23         3.The commission shall set the term of a minimum of 20
   24  years and a maximum of 30 years for the standard form contract.
   25         4.A renewable energy suppliers generating facility must
   26  be located in the state to be eligible to participate in an
   27  auction.
   28         (c)Each provider must offer a standard form contract for
   29  each of the following types of renewable energy technologies and
   30  sizes:
   31         1.Solar electric technologies under 250 kilowatts and
   32  solar electric technologies over 250 kilowatts but no more than
   33  5 megawatts, including crystalline photovoltaic, solar
   34  thermoelectric, and solar thermal generating technologies.
   35         2.Wind technologies.
   36         3.Hydroelectric technologies, including technologies that
   37  use the energy in waves, ocean currents, or thermal energy
   38  differentials.
   39         4.Biomass technologies.
   40         5. Waste-heat technologies.
   41         (d)The commission shall require that a minimum of 20
   42  percent of the total funding is spent by each provider on the
   43  building of Florida renewable energy resources or the conversion
   44  of an existing fossil fuel generation plant to a Florida
   45  renewable energy resource. Fifty percent of the utility’s
   46  purchased renewable energy shall be from biomass and other
   47  renewable energy technologies, and 50 percent shall be from
   48  solar suppliers, of which at least 50 percent shall be from
   49  systems under 250 kilowatts.
   50         (e)If the bids received from the auction are insufficient
   51  to spend the total amount of funds available, the residual funds
   52  are available for purchase of renewable energy from either
   53  technologies or size class other than the undersubscribed
   54  technologies or size class or may be carried forward and spent,
   55  on a pro rata basis, over the succeeding 4 years.
   56         (f)A renewable energy generating facility that is
   57  constructed by a renewable energy supplier or by a provider of
   58  renewable energy is not subject to s. 403.519. The commission is
   59  not required to submit a report pursuant to s. 403.507(4)(a) for
   60  the project.
   61         (g)After the completion of construction of a new renewable
   62  energy project, the completion of the conversion of an existing
   63  facility to renewable energy, or the completion of a purchase of
   64  renewable energy, and the filing by a provider of a petition for
   65  approval of cost recovery, the commission must schedule a formal
   66  administrative hearing within 10 days after the date of the
   67  filing of the petition and vote on the petition within 90 days
   68  after the date of the filing.
   69         (h)1.The costs incurred by a provider in connection with
   70  the construction or conversion, operation, and maintenance of a
   71  renewable energy project are deemed to be prudent for purposes
   72  of cost recovery so long as the provider has used reasonable and
   73  customary industry practices in the design, procurement, and
   74  construction of the project in a cost-effective manner that is
   75  appropriate for the type of renewable energy facility and
   76  appropriate to the location of the facility. A provider may
   77  recover all prudently incurred costs of renewable energy under
   78  the environmental cost-recovery clause provisions of s.
   79  366.8255. As part of the cost-recovery proceedings, the provider
   80  must report to the commission the construction costs, in-service
   81  costs, operating and maintenance costs, hourly energy production
   82  of the renewable energy project, and any other information
   83  deemed relevant by the commission.
   84         2.The commission must allow full cost recovery over the
   85  entire useful life of the Florida renewable energy resource of
   86  the revenue requirements using traditional declining balance
   87  amortization of all reasonable and prudently incurred costs,
   88  including, but not limited to, the following:
   89         a.The siting, licensing, engineering, design, permitting,
   90  construction, operation, and maintenance of a renewable energy
   91  facility and associated transmission facilities by the provider.
   92  For purposes of this paragraph, the term “cost” includes, but is
   93  not limited to, all capital investments, including rate of
   94  return, and any applicable taxes and all expenses, including
   95  operation and maintenance expenses; and
   96         b.The costs associated with the purchase of capacity and
   97  energy from new renewable energy resources;
   98         c.The costs for conversion of an existing fossil fuel
   99  generating plant to a renewable energy facility, including the
  100  costs of retirement of the fossil fuel generation plant.
  101         (i)The cost of producing or purchasing renewable energy in
  102  any calendar year may not exceed 2 percent of the investor-owned
  103  utility’s total revenue from retail sales of electricity for the
  104  2010 calendar year.
  105         (j) A provider must submit the proposed project to the same
  106  bid process as with any other generating facility to develop a
  107  renewable energy project.
  108         (k)If a provider pays costs for purchased power above the
  109  provider’s full avoided costs, the seller must surrender to the
  110  provider all renewable attributes of the energy being purchased
  111  by the provider.
  112         (l)Any revenues or other economic benefit that is derived
  113  from any renewable energy credit, carbon credit, or other
  114  mechanism that attributes value to the production of renewable
  115  energy and that is received by a provider relating to renewable
  116  energy or other carbon-neutral or carbon-free means of producing
  117  electricity must be shared with the provider’s ratepayers, such
  118  that the ratepayers are credited with at least 90 percent of
  119  such revenues or of the value of such other economic benefit.
  120         (m)The Legislature finds that there is a need for the
  121  renewable energy facilities to be developed pursuant to this
  122  subsection and this legislative finding serves as the
  123  determination of need required under s. 403.519 and as the
  124  commission’s agency report required under s. 403.507(4)(a). This
  125  legislative determination of need creates a presumption of
  126  public need and necessity which may not be raised in any other
  127  forum or in the review of proceedings in such other forum and
  128  substitutes for the commission’s report required by s.
  129  403.507(4).
  130         (n)Each provider obtaining cost recovery under this
  131  subsection must, for the duration of the recovery period, file
  132  an annual report with the commission containing the information
  133  required in this subsection and any other information the
  134  commission deems necessary. The commission must gather all such
  135  reports annually and file a report with the Governor, the
  136  President of the Senate, and the Speaker of the House of
  137  Representatives not later than March 1 of each year. Each
  138  provider report must contain the following:
  139         1.A description of the project, including a description of
  140  the technology used, the size of the project, and its location.
  141         2.A description and the amounts of the costs of
  142  construction, operation, and maintenance of the project.
  143         3.A description and the total number of the jobs created
  144  as a result of the project, including how long each job lasted.
  145         4.A description of the impact of the project on existing
  146  and planned generation and transmission facilities and on
  147  ratepayers, including how much production by traditional means
  148  was avoided, any planned traditional plants included in the 10
  149  year site plan which were made unnecessary, any additional
  150  transmission that was necessary, a description of any impact on
  151  grid security and reliability, and a description of the price
  152  impact on ratepayers.
  153         (o) The commission shall adopt rules to implement this
  154  section.
  156  ================= T I T L E  A M E N D M E N T ================
  157         And the title is amended as follows:
  158         Between lines 13 and 14
  159  insert:
  160         requiring certain electric providers to purchase
  161         renewable energy by a standard form contract from
  162         different types of renewable energy facilities in the
  163         state; providing criteria for an auction that sets the
  164         price to be paid for the renewable energy; requiring
  165         the provider to reimburse the cost for the independent
  166         auction administrator; providing that the cost is
  167         recoverable through the environmental cost-recovery
  168         clause; requiring the commission to oversee the
  169         auction and ensure that certain conditions are met;
  170         providing criteria for the standard form contract;
  171         requiring each provider to offer a standard form
  172         contract for certain types of renewable energy
  173         technology and size; requiring a certain percent of
  174         the total funding expended by each provider be spent
  175         on renewable energy and solar energy resources;
  176         providing for expenditure of funds if the bids from
  177         the auction are insufficient to expend the total funds
  178         available; exempting certain renewable energy
  179         generating facilities from the siting act; requiring
  180         the commission to adopt rules implementing the
  181         section;