Florida Senate - 2011                                    SB 2078
       By the Committee on Communications, Energy, and Public Utilities
       579-03184-11                                          20112078__
    1                        A bill to be entitled                      
    2         An act relating to energy; amending s. 366.82, F.S.;
    3         requiring all public utilities to perform a free
    4         energy audit of the business structures of commercial
    5         customers; providing that the audit is deemed
    6         satisfied under certain conditions; amending s.
    7         255.252, F.S.; requiring the Department of Management
    8         Services to prioritize buildings for an energy audit
    9         and retrofits and to proceed with performing those
   10         audits and retrofits; amending s. 366.92, F.S.;
   11         deleting obsolete provisions; providing new conditions
   12         for full cost recovery for regulated electric
   13         utilities for the costs of renewable energy projects;
   14         providing a mechanism for providers to recover costs
   15         to produce or purchase renewable energy through the
   16         environmental cost-recovery clause under certain
   17         conditions; requiring providers to make reports;
   18         creating s. 366.95, F.S.; providing for the
   19         development of a state energy resources plan by the
   20         Public Service Commission; establishing requirements
   21         for the plan; requiring the Public Service Commission
   22         to make certain determinations; providing criteria;
   23         requiring the additional renewable energy resources to
   24         be obtained pursuant to the bid process; providing for
   25         cost recovery for new facilities developed under the
   26         plan; providing that a determination by the commission
   27         constitutes a determination of need and the required
   28         agency report; requiring the commission to review the
   29         state energy resources plan biennially; transferring
   30         all of the powers, property, unexpended balances of
   31         appropriations, allocations, and administrative
   32         authority of the Florida Energy and Climate Commission
   33         to the Florida Energy Office by a type two transfer;
   34         amending s. 377.6015, F.S.; locating the Florida
   35         Energy Office within the Department of Environmental
   36         Protection; specifying that the office is not subject
   37         to control, supervision, or direction by the
   38         Department of Environmental Protection and exempting
   39         the office from certain provisions; providing for the
   40         administrative structure of the Florida Energy Office;
   41         providing for the powers and duties of the Florida
   42         Energy Office; providing an effective date.
   44  Be It Enacted by the Legislature of the State of Florida:
   46         Section 1. Subsection (11) of section 366.82, Florida
   47  Statutes, is amended to read:
   48         366.82 Definition; goals; plans; programs; annual reports;
   49  energy audits.—
   50         (11)(a) The commission shall require each utility to offer,
   51  or to contract to offer, energy audits to its residential
   52  customers. This requirement need not be uniform, but may be
   53  based on such factors as level of usage, geographic location, or
   54  any other reasonable criterion, so long as all eligible
   55  customers are notified. The commission may extend this
   56  requirement to some or all commercial customers. The commission
   57  shall set the charge for audits by rule, not to exceed the
   58  actual cost, and may describe by rule the general form and
   59  content of an audit. In the event one utility contracts with
   60  another utility to perform audits for it, the utility for which
   61  the audits are performed shall pay the contracting utility the
   62  reasonable cost of performing the audits. Each utility over
   63  which the commission has ratesetting authority shall estimate
   64  its costs and revenues for audits, conservation programs, and
   65  implementation of its plan for the immediately following 6-month
   66  period. Reasonable and prudent unreimbursed costs projected to
   67  be incurred, or any portion of such costs, may be added to the
   68  rates which would otherwise be charged by a utility upon
   69  approval by the commission, provided that the commission shall
   70  not allow the recovery of the cost of any company image
   71  enhancing advertising or of any advertising not directly related
   72  to an approved conservation program. Following each 6-month
   73  period, each utility shall report the actual results for that
   74  period to the commission, and the difference, if any, between
   75  actual and projected results shall be taken into account in
   76  succeeding periods. The state plan as submitted for
   77  consideration under the National Energy Conservation Policy Act
   78  must shall not be in conflict with any state law or regulation.
   79         (b)Before December 31, 2016, each public utility shall, in
   80  writing, offer to conduct a free energy audit of the business
   81  structures of each commercial customer within its service
   82  territory and provide the customer with a report that includes
   83  options for energy savings improvements and any available
   84  financial assistance for said improvements. If a customer has
   85  been audited in the previous 5 years before July 1, 2011, this
   86  requirement is deemed satisfied.
   87         Section 2. Subsection (5) of section 255.252, Florida
   88  Statutes, is amended to read:
   89         255.252 Findings and intent.—
   90         (5) Each state agency occupying space within buildings
   91  owned or managed by the Department of Management Services must
   92  identify and compile a list of projects determined to be
   93  suitable for a guaranteed energy, water, and wastewater
   94  performance savings contract pursuant to s. 489.145. The list of
   95  projects compiled by each state agency shall be submitted to the
   96  Department of Management Services by December 31, 2008, and must
   97  include all criteria used to determine suitability. The list of
   98  projects shall be developed from the list of state-owned
   99  facilities more than 5,000 square feet in area and for which the
  100  state agency is responsible for paying the expenses of utilities
  101  and other operating expenses as they relate to energy use. In
  102  consultation with the head of each state agency, by July 1,
  103  2009, the department shall prioritize all projects deemed
  104  suitable by each state agency and shall develop an energy
  105  efficiency project schedule based on factors such as project
  106  magnitude, efficiency and effectiveness of energy conservation
  107  measures to be implemented, and other factors that may prove to
  108  be advantageous to pursue. The schedule shall provide the
  109  deadline for guaranteed energy, water, and wastewater
  110  performance savings contract improvements to be made to the
  111  state-owned buildings. Beginning on July 1, 2011, in
  112  consultation with the head of each state agency, the Department
  113  of Management Services shall develop a prioritized list of
  114  buildings on which to have an energy audit performed. The
  115  Department of Management Services shall then proceed to perform
  116  the energy savings retrofits in the order of the anticipated
  117  shortest payback period.
  118         Section 3. Section 366.92, Florida Statutes, is amended to
  119  read:
  120         366.92 Florida renewable energy policy.—
  121         (1) It is the intent of the Legislature to promote the
  122  development of renewable energy; protect the economic viability
  123  of Florida’s existing renewable energy facilities; diversify the
  124  types of fuel used to generate electricity in Florida; lessen
  125  Florida’s dependence on natural gas and fuel oil for the
  126  production of electricity; minimize the volatility of fuel
  127  costs; encourage investment within the state; improve
  128  environmental conditions; and, at the same time, minimize the
  129  costs of power supply to electric utilities and their customers.
  130         (2) As used in this section, the term:
  131         (a) “Florida renewable energy resources” means renewable
  132  energy, as defined in s. 377.803, that is produced in Florida.
  133         (b) “Provider” means a “utility” as defined in s.
  134  366.8255(1)(a).
  135         (c) “Renewable energy” means renewable energy as defined in
  136  s. 366.91(2)(d).
  137         (d) “Renewable energy credit” or “REC” means a product that
  138  represents the unbundled, separable, renewable attribute of
  139  renewable energy produced in Florida and is equivalent to 1
  140  megawatt-hour of electricity generated by a source of renewable
  141  energy located in Florida.
  142         (e) “Renewable portfolio standard” or “RPS” means the
  143  minimum percentage of total annual retail electricity sales by a
  144  provider to consumers in Florida that shall be supplied by
  145  renewable energy produced in Florida.
  146         (3)(a)A provider may petition the commission through July
  147  1, 2016, for recovery of costs to produce or purchase renewable
  148  energy. A provider may develop renewable energy projects and
  149  recover all related costs as provided herein. A provider may
  150  build Florida renewable energy resources, convert existing
  151  fossil fuel generation plants to a Florida renewable energy
  152  resource, or purchase renewable energy. If a provider opts to
  153  develop renewable energy pursuant to this subsection, at least
  154  25 percent of the total nameplate capacity for which a provider
  155  is permitted to recover costs in any calendar year under this
  156  subsection must be produced or purchased from renewable energy
  157  resources other than solar energy. In the case of a purchase of
  158  non-solar renewable energy, the provider must purchase actual
  159  production from nameplate capacity of that amount.
  160         (b)After the completion of construction of a new renewable
  161  energy project, the completion of the conversion of an existing
  162  facility to renewable energy, or the completion of a purchase of
  163  renewable energy, and the filing by a provider of a petition for
  164  approval of cost recovery, the commission must schedule a formal
  165  administrative hearing within 10 days after the date of the
  166  filing of the petition and vote on the petition within 90 days
  167  after the date of the filing.
  168         (c)1.The costs incurred by a provider in connection with
  169  the construction or conversion, operation, and maintenance of a
  170  renewable energy project are deemed to be prudent for purposes
  171  of cost recovery so long as the provider has used reasonable and
  172  customary industry practices in the design, procurement, and
  173  construction of the project in a cost-effective manner that is
  174  appropriate for the type of renewable energy facility and
  175  appropriate to the location of the facility. A provider may
  176  recover all prudently incurred costs of renewable energy under
  177  the environmental cost-recovery clause provisions of s.
  178  366.8255. As part of the cost-recovery proceedings, the provider
  179  must report to the commission the construction costs, in-service
  180  costs, operating and maintenance costs, hourly energy production
  181  of the renewable energy project, and any other information
  182  deemed relevant by the commission.
  183         2.The commission must allow full cost recovery over the
  184  entire useful life of the Florida renewable energy resource of
  185  the revenue requirements using traditional declining balance
  186  amortization of all reasonable and prudently incurred costs,
  187  including, but not limited to, the following:
  188         a.The siting, licensing, engineering, design, permitting,
  189  construction, operation, and maintenance of a renewable energy
  190  facility and associated transmission facilities by the provider.
  191  For purposes of this paragraph, the term “cost” includes, but is
  192  not limited to, all capital investments, including rate of
  193  return, and any applicable taxes and all expenses, including
  194  operation and maintenance expenses;
  195         b.The costs associated with the purchase of capacity and
  196  energy from new renewable energy resources;
  197         c.The costs for conversion of an existing fossil fuel
  198  generating plant to a renewable energy facility, including the
  199  costs of retirement of the fossil fuel generation plant.
  200         (d)The cost of producing or purchasing renewable energy in
  201  any calendar year may not exceed 2 percent of the investor-owned
  202  utility’s total revenue from retail sales of electricity for the
  203  2010 calendar year.
  204         (e) A provider must submit the proposed project to the same
  205  bid process as with any other generating facility to develop a
  206  renewable energy project.
  207         (f)If a provider pays costs for purchased power above the
  208  provider’s full avoided costs, the seller must surrender to the
  209  provider all renewable attributes of the energy being purchased
  210  by the provider.
  211         (g)Any revenues or other economic benefit that is derived
  212  from any renewable energy credit, carbon credit, or other
  213  mechanism that attributes value to the production of renewable
  214  energy and that is received by a provider relating to renewable
  215  energy or other carbon-neutral or carbon-free means of producing
  216  electricity must be shared with the provider’s ratepayers, such
  217  that the ratepayers are credited with at least 90 percent of
  218  such revenues or of the value of such other economic benefit.
  219         (h)The Legislature finds that there is a need for the
  220  renewable energy facilities to be developed pursuant to this
  221  subsection and this legislative finding serves as the
  222  determination of need required under s. 403.519 and as the
  223  commission’s agency report required under s. 403.507(4)(a). This
  224  legislative determination of need creates a presumption of
  225  public need and necessity which may not be raised in any other
  226  forum or in the review of proceedings in such other forum and
  227  substitutes for the commission’s report required by s.
  228  403.507(4).
  229         (i)Each provider obtaining cost recovery under this
  230  subsection must, for the duration of the recovery period, file
  231  an annual report with the commission containing the information
  232  required in this subsection and any other information the
  233  commission deems necessary. The commission must gather all such
  234  reports annually and file a report with the Governor, the
  235  President of the Senate, and the Speaker of the House of
  236  Representatives not later than March 1 of each year. Each
  237  provider report must contain the following:
  238         1.A description of the project, including a description of
  239  the technology used, the size of the project, and its location.
  240         2.A description and the amounts of the costs of
  241  construction, operation, and maintenance of the project.
  242         3.A description and the total number of the jobs created
  243  as a result of the project, including how long each job lasted.
  244         4.A description of the impact of the project on existing
  245  and planned generation and transmission facilities and on
  246  ratepayers, including how much production by traditional means
  247  was avoided, any planned traditional plants included in the 10
  248  year site plan which were made unnecessary, any additional
  249  transmission that was necessary, a description of any impact on
  250  grid security and reliability, and a description of the price
  251  impact on ratepayers.
  252         (3) The commission shall adopt rules for a renewable
  253  portfolio standard requiring each provider to supply renewable
  254  energy to its customers directly, by procuring, or through
  255  renewable energy credits. In developing the RPS rule, the
  256  commission shall consult the Department of Environmental
  257  Protection and the Florida Energy and Climate Commission. The
  258  rule shall not be implemented until ratified by the Legislature.
  259  The commission shall present a draft rule for legislative
  260  consideration by February 1, 2009.
  261         (a) In developing the rule, the commission shall evaluate
  262  the current and forecasted levelized cost in cents per kilowatt
  263  hour through 2020 and current and forecasted installed capacity
  264  in kilowatts for each renewable energy generation method through
  265  2020.
  266         (b) The commission’s rule:
  267         1. Shall include methods of managing the cost of compliance
  268  with the renewable portfolio standard, whether through direct
  269  supply or procurement of renewable power or through the purchase
  270  of renewable energy credits. The commission shall have
  271  rulemaking authority for providing annual cost recovery and
  272  incentive-based adjustments to authorized rates of return on
  273  common equity to providers to incentivize renewable energy.
  274  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  275  the rules developed pursuant to this subsection, the commission
  276  may approve projects and power sales agreements with renewable
  277  power producers and the sale of renewable energy credits needed
  278  to comply with the renewable portfolio standard. In the event of
  279  any conflict, this subparagraph shall supersede s. 366.91(3) and
  280  (4). However, nothing in this section shall alter the obligation
  281  of each public utility to continuously offer a purchase contract
  282  to producers of renewable energy.
  283         2. Shall provide for appropriate compliance measures and
  284  the conditions under which noncompliance shall be excused due to
  285  a determination by the commission that the supply of renewable
  286  energy or renewable energy credits was not adequate to satisfy
  287  the demand for such energy or that the cost of securing
  288  renewable energy or renewable energy credits was cost
  289  prohibitive.
  290         3. May provide added weight to energy provided by wind and
  291  solar photovoltaic over other forms of renewable energy, whether
  292  directly supplied or procured or indirectly obtained through the
  293  purchase of renewable energy credits.
  294         4. Shall determine an appropriate period of time for which
  295  renewable energy credits may be used for purposes of compliance
  296  with the renewable portfolio standard.
  297         5. Shall provide for monitoring of compliance with and
  298  enforcement of the requirements of this section.
  299         6. Shall ensure that energy credited toward compliance with
  300  the requirements of this section is not credited toward any
  301  other purpose.
  302         7. Shall include procedures to track and account for
  303  renewable energy credits, including ownership of renewable
  304  energy credits that are derived from a customer-owned renewable
  305  energy facility as a result of any action by a customer of an
  306  electric power supplier that is independent of a program
  307  sponsored by the electric power supplier.
  308         8. Shall provide for the conditions and options for the
  309  repeal or alteration of the rule in the event that new
  310  provisions of federal law supplant or conflict with the rule.
  311         (c) Beginning on April 1 of the year following final
  312  adoption of the commission’s renewable portfolio standard rule,
  313  each provider shall submit a report to the commission describing
  314  the steps that have been taken in the previous year and the
  315  steps that will be taken in the future to add renewable energy
  316  to the provider’s energy supply portfolio. The report shall
  317  state whether the provider was in compliance with the renewable
  318  portfolio standard during the previous year and how it will
  319  comply with the renewable portfolio standard in the upcoming
  320  year.
  321         (4)In order to demonstrate the feasibility and viability
  322  of clean energy systems, the commission shall provide for full
  323  cost recovery under the environmental cost-recovery clause of
  324  all reasonable and prudent costs incurred by a provider for
  325  renewable energy projects that are zero greenhouse gas emitting
  326  at the point of generation, up to a total of 110 megawatts
  327  statewide, and for which the provider has secured necessary
  328  land, zoning permits, and transmission rights within the state.
  329  Such costs shall be deemed reasonable and prudent for purposes
  330  of cost recovery so long as the provider has used reasonable and
  331  customary industry practices in the design, procurement, and
  332  construction of the project in a cost-effective manner
  333  appropriate to the location of the facility. The provider shall
  334  report to the commission as part of the cost-recovery
  335  proceedings the construction costs, in-service costs, operating
  336  and maintenance costs, hourly energy production of the renewable
  337  energy project, and any other information deemed relevant by the
  338  commission. Any provider constructing a clean energy facility
  339  pursuant to this section shall file for cost recovery no later
  340  than July 1, 2009.
  341         (4)(5) Each municipal electric utility and rural electric
  342  cooperative shall develop standards for the promotion,
  343  encouragement, and expansion of the use of renewable energy
  344  resources and energy conservation and efficiency measures. On or
  345  before April 1, 2009, and annually thereafter, each municipal
  346  electric utility and electric cooperative shall submit to the
  347  commission a report that identifies such standards.
  348         (5)(6) Nothing in this section shall be construed to impede
  349  or impair terms and conditions of existing contracts or to
  350  require renegotiation or repricing of existing contracts.
  351         (6)(7) The commission may adopt rules to administer and
  352  implement the provisions of this section.
  353         Section 4. Section 366.95, Florida Statutes, is created to
  354  read:
  355         366.95 State energy resources plan.—
  356         (1)The Legislature finds that increased use of renewable
  357  energy in this state would have the following benefits:
  358         (a)Renewable energy can help with issues relating to fuel
  359  used to generate electricity;
  360         (b)Renewable energy can help reduce carbon emissions; and
  361         (c)Renewable energy can produce jobs.
  362         (2)The state currently has very little renewable energy in
  363  production, with renewable energy constituting approximately 2
  364  percent of all electricity sold at retail. Quickly increasing
  365  the use of renewable energy would be costly to ratepayers. Each
  366  of the regulated utilities is different in customer base,
  367  generation fleet, and transmission and distribution requirements
  368  and would be affected differently by a renewable energy
  369  requirement, making a mandate inappropriate. In lieu of a
  370  mandate, the commission shall develop a state energy resources
  371  plan as an expansion of its duties relating to the 10-year site
  372  plan requirements of s. 186.801. As a part of this planning
  373  process, the commission shall look beyond the 10-year period to
  374  a 20-year period.
  375         (3)The Public Service Commission shall develop a plan
  376  that:
  377         (a)Forecasts:
  378         1. The demand for electricity;
  379         2. The energy supply requirements needed to satisfy this
  380  projected demand, including the amount of capacity needed to
  381  provide adequate reserve margins and capacity needed to ensure
  382  reliability;
  383         3. The ability of the existing energy supply sources and
  384  the existing transmission systems to satisfy the state’s energy
  385  needs together with those sources or systems reasonably certain
  386  to be available, including planned additions, retirements,
  387  substantial planned outages, and any other expected changes in
  388  levels of generating and production capacity; and
  389         4. The additional electric capacity or transmission systems
  390  needed to meet such energy supply requirements that will not be
  391  met by existing sources of supply and those reasonably certain
  392  to be available, where such analysis should identify system
  393  constraints and possible alternatives available, both supply
  394  side and demand-side alternatives, including, but not limited
  395  to, distributed generation, energy efficiency, and conservation
  396  measures, to redress such constraint.
  397         (b)Identifies and assesses the costs, risks, benefits, and
  398  uncertainties of energy supply source alternatives, including
  399  demand-reducing measures, renewable energy resources,
  400  distributed generation technologies, cogeneration technologies,
  401  and other methods and technologies reasonably available for
  402  satisfying energy supply requirements.
  403         (c)Identifies and analyzes emerging trends related to
  404  energy supply, price, and demand.
  405         (d)Identifies potential future sites for biomass power
  406  plants and solar power plants.
  407         (e)Identifies potential future sites for transmission and
  408  distribution lines.
  409         (f) Determines optimal percentages of fuels and
  410  technologies, both traditional and renewable, in the electric
  411  generation fleet for the next 20-year period.
  412         (g)Determines the process and timeline for incorporating
  413  renewable energy resources into the generation fleet, and
  414  addresses redundancy of plants, both necessary and unnecessary,
  415  and the retirement of unnecessary existing plants.
  416         (h) Determines if any changes should be made to capacity,
  417  including any additions or retirements, and if any additional
  418  transmission or distribution lines are necessary.
  419         (4) The commission shall consider the following in making a
  420  determination whether a renewable energy resource should be
  421  added to the generation and production fleet:
  422         (a)The societal benefits of renewable energy;
  423         (b)The necessity of maintaining an adequate and reliable
  424  source for energy and capacity needs;
  425         (c)The necessity of maintaining an adequate and reliable
  426  transmission and distribution grid;
  427         (d)The necessity to maintain fuel mix and diversity and
  428  source reliability and to minimize price fluctuations; and
  429         (e)The necessity of minimizing overall price impacts to
  430  ratepayers.
  431         (5)(a)A public utility may obtain additional renewable
  432  energy resources pursuant to this section if the commission
  433  determines that renewable energy resources should be added to
  434  the generation and production fleet by building a renewable
  435  energy facility, converting an existing fossil fuel facility to
  436  renewable energy, or purchasing renewable energy. All projects
  437  are subject to the same bid process as with any other generating
  438  facility. The provider must submit a bid if it seeks to self
  439  build the project.
  440         (b) The utility may recover all reasonable and prudently
  441  incurred costs for building a renewable energy facility,
  442  converting an existing fossil fuel facility to renewable energy,
  443  or purchasing renewable energy in base rates. All determinations
  444  of prudency of costs shall be made, giving consideration to the
  445  provisions and goals of this section and of the state energy
  446  resources plan.
  447         (c) All revenues from renewable energy credits or carbon
  448  credits shall be shared with ratepayers in a manner such that
  449  ratepayers receive a minimum of 90 percent of the revenue.
  450         (6)A determination by the commission that renewable energy
  451  resources should be added to the generation and production fleet
  452  constitutes a determination of need for those resources and is
  453  the determination of need required under s. 403.519 and the
  454  commission’s agency report required under s. 403.507(4)(a).
  455         (7)The Florida Energy Office may be a party to all
  456  proceedings under this section, and the Department of
  457  Agriculture and Consumer Services may be a party in any
  458  proceeding relating to biomass plants on issues relating to
  459  proper siting for proximity to foodstocks, forestry management,
  460  or related matters.
  461         (8)The commission shall review the state energy resources
  462  plan biennially.
  463         Section 5. All of the powers, duties, functions, records,
  464  personnel, and property; unexpended balances of appropriations,
  465  allocations, and other funds; administrative authority;
  466  administrative rules; pending issues; and existing contracts of
  467  the Florida Energy and Climate Commission are transferred by a
  468  type two transfer, pursuant to s. 20.06(2), Florida Statutes, to
  469  the Florida Energy Office.
  470         Section 6. Section 377.6015, Florida Statutes, is amended
  471  to read:
  472         377.6015 Florida Energy Office and Climate Commission.—
  473         (1)There is created within the Department of Environmental
  474  Protection the Florida Energy Office. The office is a separate
  475  budget entity and is exempt from the provisions of s. 20.052.
  476  The office is not subject to control, supervision, or direction
  477  by the Department of Environmental Protection in any manner,
  478  including purchasing, transactions involving real or personal
  479  property, personnel, or budgetary matters.
  480         (2)The office shall be headed by a director, who is the
  481  agency head for purposes of final agency action under chapter
  482  120 for all areas within the authority delegated to the
  483  director’s office. The director shall be appointed by the
  484  Governor and shall be subject to confirmation by the Senate.
  485         (3)The office shall have a sufficient number of
  486  professional and administrative personnel to carry out its
  487  responsibilities.
  488         (1) The Florida Energy and Climate Commission is created
  489  within the Executive Office of the Governor. The commission
  490  shall be comprised of nine members appointed by the Governor,
  491  the Commissioner of Agriculture, and the Chief Financial
  492  Officer.
  493         (a) The Governor shall appoint one member from three
  494  persons nominated by the Florida Public Service Commission
  495  Nominating Council, created in s. 350.031, to each of seven
  496  seats on the commission. The Commissioner of Agriculture shall
  497  appoint one member from three persons nominated by the council
  498  to one seat on the commission. The Chief Financial Officer shall
  499  appoint one member from three persons nominated by the council
  500  to one seat on the commission.
  501         1. The council shall submit the recommendations to the
  502  Governor, the Commissioner of Agriculture, and the Chief
  503  Financial Officer by September 1 of those years in which the
  504  terms are to begin the following October or within 60 days after
  505  a vacancy occurs for any reason other than the expiration of the
  506  term. The Governor, the Commissioner of Agriculture, and the
  507  Chief Financial Officer may proffer names of persons to be
  508  considered for nomination by the council.
  509         2. The Governor, the Commissioner of Agriculture, and the
  510  Chief Financial Officer shall fill a vacancy occurring on the
  511  commission by appointment of one of the applicants nominated by
  512  the council only after a background investigation of such
  513  applicant has been conducted by the Department of Law
  514  Enforcement.
  515         3. Members shall be appointed to 3-year terms; however, in
  516  order to establish staggered terms, for the initial
  517  appointments, the Governor shall appoint four members to 3-year
  518  terms, two members to 2-year terms, and one member to a 1-year
  519  term, and the Commissioner of Agriculture and the Chief
  520  Financial Officer shall each appoint one member to a 3-year term
  521  and shall appoint a successor when that appointee’s term expires
  522  in the same manner as the original appointment.
  523         4. The Governor shall select from the membership of the
  524  commission one person to serve as chair.
  525         5. A vacancy on the commission shall be filled for the
  526  unexpired portion of the term in the same manner as the original
  527  appointment.
  528         6. If the Governor, the Commissioner of Agriculture, or the
  529  Chief Financial Officer has not made an appointment within 30
  530  consecutive calendar days after the receipt of the
  531  recommendations, the council shall initiate, in accordance with
  532  this section, the nominating process within 30 days.
  533         7. Each appointment to the commission shall be subject to
  534  confirmation by the Senate during the next regular session after
  535  the vacancy occurs. If the Senate refuses to confirm or fails to
  536  consider the appointment of the Governor, the Commissioner of
  537  Agriculture, or the Chief Financial Officer, the council shall
  538  initiate, in accordance with this section, the nominating
  539  process within 30 days.
  540         8. The Governor or the Governor’s successor may recall an
  541  appointee.
  542         9.  Notwithstanding subparagraph 7. and for the initial
  543  appointments to the commission only, each initial appointment to
  544  the commission is subject to confirmation by the Senate by the
  545  2010 Regular Session. If the Senate refuses to confirm or fails
  546  to consider an appointment made by the Governor, the
  547  Commissioner of Agriculture, or the Chief Financial Officer, the
  548  council shall initiate, in accordance with this section, the
  549  nominating process within 30 days after the Senate’s refusal to
  550  confirm or failure to consider such appointment. This
  551  subparagraph expires July 1, 2010.
  552         (b) Members must meet the following qualifications and
  553  restrictions:
  554         1. A member must be an expert in one or more of the
  555  following fields: energy, natural resource conservation,
  556  economics, engineering, finance, law, transportation and land
  557  use, consumer protection, state energy policy, or another field
  558  substantially related to the duties and functions of the
  559  commission. The commission shall fairly represent the fields
  560  specified in this subparagraph.
  561         2. Each member shall, at the time of appointment and at
  562  each commission meeting during his or her term of office,
  563  disclose:
  564         a. Whether he or she has any financial interest, other than
  565  ownership of shares in a mutual fund, in any business entity
  566  that, directly or indirectly, owns or controls, or is an
  567  affiliate or subsidiary of, any business entity that may be
  568  affected by the policy recommendations developed by the
  569  commission.
  570         b. Whether he or she is employed by or is engaged in any
  571  business activity with any business entity that, directly or
  572  indirectly, owns or controls, or is an affiliate or subsidiary
  573  of, any business entity that may be affected by the policy
  574  recommendations developed by the commission.
  575         (c) The chair may designate the following ex officio,
  576  nonvoting members to provide information and advice to the
  577  commission at the request of the chair:
  578         1. The chair of the Florida Public Service Commission, or
  579  his or her designee.
  580         2. The Public Counsel, or his or her designee.
  581         3. A representative of the Department of Agriculture and
  582  Consumer Services.
  583         4. A representative of the Department of Financial
  584  Services.
  585         5. A representative of the Department of Environmental
  586  Protection.
  587         6. A representative of the Department of Community Affairs.
  588         7. A representative of the Board of Governors of the State
  589  University System.
  590         8. A representative of the Department of Transportation.
  591         (2) Members shall serve without compensation but are
  592  entitled to reimbursement for per diem and travel expenses as
  593  provided in s. 112.061.
  594         (3) Meetings of the commission may be held in various
  595  locations around the state and at the call of the chair;
  596  however, the commission must meet at least six times each year.
  597         (4) The office commission may:
  598         (a) Employ staff and counsel as needed in the performance
  599  of its duties.
  600         (b) Prosecute and defend legal actions in its own name.
  601         (c) Form advisory groups consisting of members of the
  602  public to provide information on specific issues.
  603         (5) The office commission shall:
  604         (a) Act as the principal economic development organization
  605  for the state on matters relating to renewable, alternative, or
  606  clean energy.
  607         1. The office shall market the state as a probusiness
  608  location for potential new energy-related investment in order to
  609  create new energy-related businesses and to retain and expand
  610  existing energy-related businesses. In doing so, the office
  611  shall work with Enterprise Florida, Inc., Space Florida, and all
  612  other governmental entities at all levels, and with all relevant
  613  private sector entities as necessary to facilitate the location
  614  of a business in this state by assisting those businesses in
  615  such matters as obtaining permits or licenses, determining
  616  appropriate tax laws and rules, and obtaining financing,
  617  incentives, grants, and other funding.
  618         2. The office shall work with the Florida Energy Systems
  619  Consortium to coordinate and promote Florida research on energy
  620  and to recruit energy researchers to Florida. As part of this
  621  role, the office shall serve as the clearinghouse for research
  622  information from universities and private sector entities that
  623  receive funding or other assistance from the state relating to
  624  their research projects.
  625         (b)(a) Administer the Florida Renewable Energy and Energy
  626  Efficient Technologies Grants Program pursuant to s. 377.804 to
  627  assure a robust grant portfolio.
  628         (c)(b) Develop policy for requiring grantees to provide
  629  royalty-sharing or licensing agreements with state government
  630  for commercialized products developed under a state grant.
  631         (d)(c) Administer the Florida Green Government Grants Act
  632  pursuant to s. 377.808 and set annual priorities for grants.
  633         (e)(d) Administer the information gathering and reporting
  634  functions pursuant to ss. 377.601-377.608.
  635         (e) Administer petroleum planning and emergency contingency
  636  planning pursuant to ss. 377.701, 377.703, and 377.704.
  637         (f) Represent Florida in the Southern States Energy Compact
  638  pursuant to ss. 377.71-377.712.
  639         (g) Complete the annual assessment of the efficacy of
  640  Florida’s Energy and Climate Change Action Plan, upon completion
  641  by the Governor’s Action Team on Energy and Climate Change
  642  pursuant to the Governor’s Executive Order 2007-128, and provide
  643  specific recommendations to the Governor and the Legislature
  644  each year to improve results.
  645         (g)(h) Administer the provisions of the Florida Energy and
  646  Climate Protection Act pursuant to ss. 377.801-377.806.
  647         (h)(i) Advocate for energy and climate change issues and
  648  provide educational outreach and technical assistance in
  649  cooperation with the state’s academic institutions.
  650         (j) Be a party in the proceedings to adopt goals and submit
  651  comments to the Public Service Commission pursuant to s. 366.82.
  652         (i)(k) Adopt rules pursuant to chapter 120 in order to
  653  implement all powers and duties described in this section.
  654         Section 7. This act shall take effect July 1, 2011.