Florida Senate - 2011                             CS for SB 2078
       By the Committees on Communications, Energy, and Public
       Utilities; and Communications, Energy, and Public Utilities
       579-03841-11                                          20112078c1
    1                        A bill to be entitled                      
    2         An act relating to energy; amending s. 366.051, F.S.;
    3         requiring a utility to purchase excess electrical
    4         output generated by any property owner’s rooftop solar
    5         equipment within its service area; amending s. 366.82,
    6         F.S.; requiring all public utilities to perform a free
    7         energy audit of the business structures of commercial
    8         customers; providing that the audit is deemed
    9         satisfied under certain conditions; amending s.
   10         255.252, F.S.; requiring the Department of Management
   11         Services to prioritize buildings for an energy audit
   12         and retrofits and to proceed with performing those
   13         audits and retrofits; amending s. 366.92, F.S.;
   14         deleting obsolete provisions; providing new conditions
   15         for full cost recovery for regulated electric
   16         utilities for the costs of renewable energy projects;
   17         authorizing a certain amount of recoverable costs for
   18         solar generation to be added to the provider’s demand
   19         side renewable energy system projects; making
   20         available certain amounts for solar projects of up to
   21         10 kilowatts; providing a mechanism for providers to
   22         recover costs to produce or purchase renewable energy
   23         through the environmental cost-recovery clause under
   24         certain conditions; requiring providers to make
   25         reports; creating s. 366.95, F.S.; providing for the
   26         development of a state energy resources plan by the
   27         Public Service Commission; establishing requirements
   28         for the plan; requiring the Public Service Commission
   29         to make certain determinations; providing criteria;
   30         requiring the additional renewable energy resources to
   31         be obtained pursuant to the bid process; providing for
   32         cost recovery for new facilities developed under the
   33         plan; providing that a determination by the commission
   34         constitutes a determination of need and the required
   35         agency report; requiring the commission to review the
   36         state energy resources plan biennially; transferring
   37         all of the powers, property, unexpended balances of
   38         appropriations, allocations, and administrative
   39         authority of the Florida Energy and Climate Commission
   40         to the Florida Energy Office by a type two transfer;
   41         amending s. 377.6015, F.S.; locating the Florida
   42         Energy Office within the Department of Environmental
   43         Protection; specifying that the office is not subject
   44         to control, supervision, or direction by the
   45         Department of Environmental Protection and exempting
   46         the office from certain provisions; providing for the
   47         administrative structure of the Florida Energy Office;
   48         providing for the powers and duties of the Florida
   49         Energy Office; providing an effective date.
   51  Be It Enacted by the Legislature of the State of Florida:
   53         Section 1. Section 366.051, Florida Statutes, is amended to
   54  read:
   55         366.051 Cogeneration; small power production; commission
   56  jurisdiction.—Electricity produced by cogeneration and small
   57  power production, including that produced by individual property
   58  owners using rooftop solar equipment, is of benefit to the
   59  public when included as part of the total energy supply of the
   60  entire electric grid of the state or consumed by a cogenerator
   61  or small power producer. To empower individual property owners
   62  to invest in renewable energy alternatives on their own property
   63  so that they may reduce their individual energy cost and
   64  consumption of fossil fuels, utilities are required to purchase
   65  the excess electrical output generated by any property owner
   66  within its service area who has installed rooftop solar
   67  equipment. The electric utility in whose service area a
   68  cogenerator or small power producer is located shall purchase,
   69  in accordance with applicable law, all electricity offered for
   70  sale by such cogenerator or small power producer; or the
   71  cogenerator or small power producer may sell such electricity to
   72  any other electric utility in the state. The commission shall
   73  establish guidelines relating to the purchase of power or energy
   74  by public utilities from cogenerators or small power producers
   75  and may set rates at which a public utility must purchase power
   76  or energy from a cogenerator or small power producer. In fixing
   77  rates for power purchased by public utilities from cogenerators
   78  or small power producers, the commission shall authorize a rate
   79  equal to the purchasing utility’s full avoided costs. A
   80  utility’s “full avoided costs” are the incremental costs to the
   81  utility of the electric energy or capacity, or both, which, but
   82  for the purchase from cogenerators or small power producers,
   83  such utility would generate itself or purchase from another
   84  source. The commission may use a statewide avoided unit when
   85  setting full avoided capacity costs. If the cogenerator or small
   86  power producer provides adequate security, based on its
   87  financial stability, and no costs in excess of full avoided
   88  costs are likely to be incurred by the electric utility over the
   89  term during which electricity is to be provided, the commission
   90  shall authorize the levelization of payments and the elimination
   91  of discounts due to risk factors in determining the rates.
   92  Public utilities shall provide transmission or distribution
   93  service to enable a retail customer to transmit electrical power
   94  generated by the customer at one location to the customer’s
   95  facilities at another location, if the commission finds that the
   96  provision of this service, and the charges, terms, and other
   97  conditions associated with the provision of this service, are
   98  not likely to result in higher cost electric service to the
   99  utility’s general body of retail and wholesale customers or
  100  adversely affect the adequacy or reliability of electric service
  101  to all customers. Notwithstanding any other provision of law,
  102  power generated by the customer and provided by the utility to
  103  the customers’ facility at another location is subject to the
  104  gross receipts tax imposed under s. 203.01 and the use tax
  105  imposed under s. 212.06. Such taxes shall apply at the time the
  106  power is provided at such other location and shall be based upon
  107  the cost price of such power as provided in s. 212.06(1)(b).
  108         Section 2. Subsection (11) of section 366.82, Florida
  109  Statutes, is amended to read:
  110         366.82 Definition; goals; plans; programs; annual reports;
  111  energy audits.—
  112         (11)(a) The commission shall require each utility to offer,
  113  or to contract to offer, energy audits to its residential
  114  customers. This requirement need not be uniform, but may be
  115  based on such factors as level of usage, geographic location, or
  116  any other reasonable criterion, so long as all eligible
  117  customers are notified. The commission may extend this
  118  requirement to some or all commercial customers. The commission
  119  shall set the charge for audits by rule, not to exceed the
  120  actual cost, and may describe by rule the general form and
  121  content of an audit. In the event one utility contracts with
  122  another utility to perform audits for it, the utility for which
  123  the audits are performed shall pay the contracting utility the
  124  reasonable cost of performing the audits. Each utility over
  125  which the commission has ratesetting authority shall estimate
  126  its costs and revenues for audits, conservation programs, and
  127  implementation of its plan for the immediately following 6-month
  128  period. Reasonable and prudent unreimbursed costs projected to
  129  be incurred, or any portion of such costs, may be added to the
  130  rates which would otherwise be charged by a utility upon
  131  approval by the commission, provided that the commission shall
  132  not allow the recovery of the cost of any company image
  133  enhancing advertising or of any advertising not directly related
  134  to an approved conservation program. Following each 6-month
  135  period, each utility shall report the actual results for that
  136  period to the commission, and the difference, if any, between
  137  actual and projected results shall be taken into account in
  138  succeeding periods. The state plan as submitted for
  139  consideration under the National Energy Conservation Policy Act
  140  must shall not be in conflict with any state law or regulation.
  141         (b)Before December 31, 2016, each public utility shall, in
  142  writing, offer to conduct a free energy audit of the business
  143  structures of each commercial customer within its service
  144  territory and provide the customer with a report that includes
  145  options for energy savings improvements and any available
  146  financial assistance for said improvements. If a customer has
  147  been audited in the previous 5 years before July 1, 2011, this
  148  requirement is deemed satisfied.
  149         Section 3. Subsection (5) of section 255.252, Florida
  150  Statutes, is amended to read:
  151         255.252 Findings and intent.—
  152         (5) Each state agency occupying space within buildings
  153  owned or managed by the Department of Management Services must
  154  identify and compile a list of projects determined to be
  155  suitable for a guaranteed energy, water, and wastewater
  156  performance savings contract pursuant to s. 489.145. The list of
  157  projects compiled by each state agency shall be submitted to the
  158  Department of Management Services by December 31, 2008, and must
  159  include all criteria used to determine suitability. The list of
  160  projects shall be developed from the list of state-owned
  161  facilities more than 5,000 square feet in area and for which the
  162  state agency is responsible for paying the expenses of utilities
  163  and other operating expenses as they relate to energy use. In
  164  consultation with the head of each state agency, by July 1,
  165  2009, the department shall prioritize all projects deemed
  166  suitable by each state agency and shall develop an energy
  167  efficiency project schedule based on factors such as project
  168  magnitude, efficiency and effectiveness of energy conservation
  169  measures to be implemented, and other factors that may prove to
  170  be advantageous to pursue. The schedule shall provide the
  171  deadline for guaranteed energy, water, and wastewater
  172  performance savings contract improvements to be made to the
  173  state-owned buildings. Beginning on July 1, 2011, in
  174  consultation with the head of each state agency, the Department
  175  of Management Services shall develop a prioritized list of
  176  buildings on which to have an energy audit performed. The
  177  Department of Management Services shall then proceed to perform
  178  the energy savings retrofits in the order of the anticipated
  179  shortest payback period.
  180         Section 4. Section 366.92, Florida Statutes, is amended to
  181  read:
  182         366.92 Florida renewable energy policy.—
  183         (1) It is the intent of the Legislature to promote the
  184  development of renewable energy; protect the economic viability
  185  of Florida’s existing renewable energy facilities; diversify the
  186  types of fuel used to generate electricity in Florida; lessen
  187  Florida’s dependence on natural gas and fuel oil for the
  188  production of electricity; minimize the volatility of fuel
  189  costs; encourage investment within the state; improve
  190  environmental conditions; and, at the same time, minimize the
  191  costs of power supply to electric utilities and their customers.
  192         (2) As used in this section, the term:
  193         (a) “Florida renewable energy resources” means renewable
  194  energy, as defined in s. 377.803, that is produced in Florida.
  195         (b) “Provider” means a “utility” as defined in s.
  196  366.8255(1)(a).
  197         (c) “Renewable energy” means renewable energy as defined in
  198  s. 366.91(2)(d).
  199         (d) “Renewable energy credit” or “REC” means a product that
  200  represents the unbundled, separable, renewable attribute of
  201  renewable energy produced in Florida and is equivalent to 1
  202  megawatt-hour of electricity generated by a source of renewable
  203  energy located in Florida.
  204         (e) “Renewable portfolio standard” or “RPS” means the
  205  minimum percentage of total annual retail electricity sales by a
  206  provider to consumers in Florida that shall be supplied by
  207  renewable energy produced in Florida.
  208         (3)(a)A provider may petition the commission through July
  209  1, 2016, for recovery of costs to produce or purchase renewable
  210  energy. A provider may develop renewable energy projects and
  211  recover all related costs as provided herein. A provider may
  212  build Florida renewable energy resources, convert existing
  213  fossil fuel generation plants to a Florida renewable energy
  214  resource, or purchase renewable energy. If a provider opts to
  215  develop renewable energy pursuant to this subsection, at least
  216  25 percent of the total nameplate capacity for which a provider
  217  is permitted to recover costs in any calendar year under this
  218  subsection must be produced or purchased from renewable energy
  219  resources other than solar energy. In the case of a purchase of
  220  non-solar renewable energy, the provider must purchase actual
  221  production from nameplate capacity of that amount.
  222         (b) Five percent of the total costs of solar generation for
  223  which a provider is permitted recovery in any calendar year
  224  under this subsection shall be added to any amounts authorized
  225  for a provider’s demand-side renewable energy system projects
  226  approved by the commission pursuant to s. 366.82. At least 50
  227  percent of this incremental amount added to the provider’s
  228  demand-side renewable energy system projects in any calendar
  229  year under this subsection shall be made available by the
  230  provider for incentives for solar projects of up to 10
  231  kilowatts.
  232         (c)After the completion of construction of a new renewable
  233  energy project, the completion of the conversion of an existing
  234  facility to renewable energy, or the completion of a purchase of
  235  renewable energy, and the filing by a provider of a petition for
  236  approval of cost recovery, the commission must schedule a formal
  237  administrative hearing within 10 days after the date of the
  238  filing of the petition and vote on the petition within 90 days
  239  after the date of the filing.
  240         (d)1.The costs incurred by a provider in connection with
  241  the construction or conversion, operation, and maintenance of a
  242  renewable energy project are deemed to be prudent for purposes
  243  of cost recovery so long as the provider has used reasonable and
  244  customary industry practices in the design, procurement, and
  245  construction of the project in a cost-effective manner that is
  246  appropriate for the type of renewable energy facility and
  247  appropriate to the location of the facility. A provider may
  248  recover all prudently incurred costs of renewable energy under
  249  the environmental cost-recovery clause provisions of s.
  250  366.8255. As part of the cost-recovery proceedings, the provider
  251  must report to the commission the construction costs, in-service
  252  costs, operating and maintenance costs, hourly energy production
  253  of the renewable energy project, and any other information
  254  deemed relevant by the commission.
  255         2.The commission must allow full cost recovery over the
  256  entire useful life of the Florida renewable energy resource of
  257  the revenue requirements using traditional declining balance
  258  amortization of all reasonable and prudently incurred costs,
  259  including, but not limited to, the following:
  260         a.The siting, licensing, engineering, design, permitting,
  261  construction, operation, and maintenance of a renewable energy
  262  facility and associated transmission facilities by the provider.
  263  For purposes of this paragraph, the term “cost” includes, but is
  264  not limited to, all capital investments, including rate of
  265  return, and any applicable taxes and all expenses, including
  266  operation and maintenance expenses;
  267         b.The costs associated with the purchase of capacity and
  268  energy from new renewable energy resources;
  269         c.The costs for conversion of an existing fossil fuel
  270  generating plant to a renewable energy facility, including the
  271  costs of retirement of the fossil fuel generation plant.
  272         (e)The cost of producing or purchasing renewable energy in
  273  any calendar year may not exceed 2 percent of the investor-owned
  274  utility’s total revenue from retail sales of electricity for the
  275  2010 calendar year. All cost recovery sought under this section
  276  shall be limited to no greater than a 2 percent increase to the
  277  average monthly bill for each of the utility’s ratepayers.
  278         (f) A provider must submit the proposed project to the same
  279  bid process as with any other generating facility to develop a
  280  renewable energy project.
  281         (g)If a provider pays costs for purchased power above the
  282  provider’s full avoided costs, the seller must surrender to the
  283  provider all renewable attributes of the energy being purchased
  284  by the provider.
  285         (h)Any revenues or other economic benefit that is derived
  286  from any renewable energy credit, carbon credit, or other
  287  mechanism that attributes value to the production of renewable
  288  energy and that is received by a provider relating to renewable
  289  energy or other carbon-neutral or carbon-free means of producing
  290  electricity must be shared with the provider’s ratepayers, such
  291  that the ratepayers are credited with at least 90 percent of
  292  such revenues or of the value of such other economic benefit.
  293         (i)The Legislature finds that there is a need for the
  294  renewable energy facilities to be developed pursuant to this
  295  subsection and this legislative finding serves as the
  296  determination of need required under s. 403.519 and as the
  297  commission’s agency report required under s. 403.507(4)(a). This
  298  legislative determination of need creates a presumption of
  299  public need and necessity which may not be raised in any other
  300  forum or in the review of proceedings in such other forum and
  301  substitutes for the commission’s report required by s.
  302  403.507(4).
  303         (j)Each provider obtaining cost recovery under this
  304  subsection must, for the duration of the recovery period, file
  305  an annual report with the commission containing the information
  306  required in this subsection and any other information the
  307  commission deems necessary. The commission must gather all such
  308  reports annually and file a report with the Governor, the
  309  President of the Senate, and the Speaker of the House of
  310  Representatives not later than March 1 of each year. Each
  311  provider report must contain the following:
  312         1.A description of the project, including a description of
  313  the technology used, the size of the project, and its location.
  314         2.A description and the amounts of the costs of
  315  construction, operation, and maintenance of the project.
  316         3.A description and the total number of the jobs created
  317  as a result of the project, including how long each job lasted.
  318         4.A description of the impact of the project on existing
  319  and planned generation and transmission facilities and on
  320  ratepayers, including how much production by traditional means
  321  was avoided, any planned traditional plants included in the 10
  322  year site plan which were made unnecessary, any additional
  323  transmission that was necessary, a description of any impact on
  324  grid security and reliability, and a description of the price
  325  impact on ratepayers.
  326         (3) The commission shall adopt rules for a renewable
  327  portfolio standard requiring each provider to supply renewable
  328  energy to its customers directly, by procuring, or through
  329  renewable energy credits. In developing the RPS rule, the
  330  commission shall consult the Department of Environmental
  331  Protection and the Florida Energy and Climate Commission. The
  332  rule shall not be implemented until ratified by the Legislature.
  333  The commission shall present a draft rule for legislative
  334  consideration by February 1, 2009.
  335         (a) In developing the rule, the commission shall evaluate
  336  the current and forecasted levelized cost in cents per kilowatt
  337  hour through 2020 and current and forecasted installed capacity
  338  in kilowatts for each renewable energy generation method through
  339  2020.
  340         (b) The commission’s rule:
  341         1. Shall include methods of managing the cost of compliance
  342  with the renewable portfolio standard, whether through direct
  343  supply or procurement of renewable power or through the purchase
  344  of renewable energy credits. The commission shall have
  345  rulemaking authority for providing annual cost recovery and
  346  incentive-based adjustments to authorized rates of return on
  347  common equity to providers to incentivize renewable energy.
  348  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  349  the rules developed pursuant to this subsection, the commission
  350  may approve projects and power sales agreements with renewable
  351  power producers and the sale of renewable energy credits needed
  352  to comply with the renewable portfolio standard. In the event of
  353  any conflict, this subparagraph shall supersede s. 366.91(3) and
  354  (4). However, nothing in this section shall alter the obligation
  355  of each public utility to continuously offer a purchase contract
  356  to producers of renewable energy.
  357         2. Shall provide for appropriate compliance measures and
  358  the conditions under which noncompliance shall be excused due to
  359  a determination by the commission that the supply of renewable
  360  energy or renewable energy credits was not adequate to satisfy
  361  the demand for such energy or that the cost of securing
  362  renewable energy or renewable energy credits was cost
  363  prohibitive.
  364         3. May provide added weight to energy provided by wind and
  365  solar photovoltaic over other forms of renewable energy, whether
  366  directly supplied or procured or indirectly obtained through the
  367  purchase of renewable energy credits.
  368         4. Shall determine an appropriate period of time for which
  369  renewable energy credits may be used for purposes of compliance
  370  with the renewable portfolio standard.
  371         5. Shall provide for monitoring of compliance with and
  372  enforcement of the requirements of this section.
  373         6. Shall ensure that energy credited toward compliance with
  374  the requirements of this section is not credited toward any
  375  other purpose.
  376         7. Shall include procedures to track and account for
  377  renewable energy credits, including ownership of renewable
  378  energy credits that are derived from a customer-owned renewable
  379  energy facility as a result of any action by a customer of an
  380  electric power supplier that is independent of a program
  381  sponsored by the electric power supplier.
  382         8. Shall provide for the conditions and options for the
  383  repeal or alteration of the rule in the event that new
  384  provisions of federal law supplant or conflict with the rule.
  385         (c) Beginning on April 1 of the year following final
  386  adoption of the commission’s renewable portfolio standard rule,
  387  each provider shall submit a report to the commission describing
  388  the steps that have been taken in the previous year and the
  389  steps that will be taken in the future to add renewable energy
  390  to the provider’s energy supply portfolio. The report shall
  391  state whether the provider was in compliance with the renewable
  392  portfolio standard during the previous year and how it will
  393  comply with the renewable portfolio standard in the upcoming
  394  year.
  395         (4)In order to demonstrate the feasibility and viability
  396  of clean energy systems, the commission shall provide for full
  397  cost recovery under the environmental cost-recovery clause of
  398  all reasonable and prudent costs incurred by a provider for
  399  renewable energy projects that are zero greenhouse gas emitting
  400  at the point of generation, up to a total of 110 megawatts
  401  statewide, and for which the provider has secured necessary
  402  land, zoning permits, and transmission rights within the state.
  403  Such costs shall be deemed reasonable and prudent for purposes
  404  of cost recovery so long as the provider has used reasonable and
  405  customary industry practices in the design, procurement, and
  406  construction of the project in a cost-effective manner
  407  appropriate to the location of the facility. The provider shall
  408  report to the commission as part of the cost-recovery
  409  proceedings the construction costs, in-service costs, operating
  410  and maintenance costs, hourly energy production of the renewable
  411  energy project, and any other information deemed relevant by the
  412  commission. Any provider constructing a clean energy facility
  413  pursuant to this section shall file for cost recovery no later
  414  than July 1, 2009.
  415         (4)(5) Each municipal electric utility and rural electric
  416  cooperative shall develop standards for the promotion,
  417  encouragement, and expansion of the use of renewable energy
  418  resources and energy conservation and efficiency measures. On or
  419  before April 1, 2009, and annually thereafter, each municipal
  420  electric utility and electric cooperative shall submit to the
  421  commission a report that identifies such standards.
  422         (5)(6) Nothing in this section shall be construed to impede
  423  or impair terms and conditions of existing contracts or to
  424  require renegotiation or repricing of existing contracts.
  425         (6)(7) The commission may adopt rules to administer and
  426  implement the provisions of this section.
  427         Section 5. Section 366.95, Florida Statutes, is created to
  428  read:
  429         366.95 State energy resources plan.—
  430         (1)The Legislature finds that increased use of renewable
  431  energy in this state would have the following benefits:
  432         (a)Renewable energy can help with issues relating to fuel
  433  used to generate electricity;
  434         (b)Renewable energy can help reduce carbon emissions; and
  435         (c)Renewable energy can produce jobs.
  436         (2)The state currently has very little renewable energy in
  437  production, with renewable energy constituting approximately 2
  438  percent of all electricity sold at retail. Quickly increasing
  439  the use of renewable energy would be costly to ratepayers. Each
  440  of the regulated utilities is different in customer base,
  441  generation fleet, and transmission and distribution requirements
  442  and would be affected differently by a renewable energy
  443  requirement, making a mandate inappropriate. In lieu of a
  444  mandate, the commission shall develop a state energy resources
  445  plan as an expansion of its duties relating to the 10-year site
  446  plan requirements of s. 186.801.
  447         (3)The Public Service Commission shall develop a plan
  448  that:
  449         (a)Forecasts:
  450         1. The demand for electricity;
  451         2. The energy supply requirements needed to satisfy this
  452  projected demand, including the amount of capacity needed to
  453  provide adequate reserve margins and capacity needed to ensure
  454  reliability;
  455         3. The ability of the existing energy supply sources and
  456  the existing transmission systems to satisfy the state’s energy
  457  needs together with those sources or systems reasonably certain
  458  to be available, including planned additions, retirements,
  459  substantial planned outages, and any other expected changes in
  460  levels of generating and production capacity; and
  461         4. The additional electric capacity or transmission systems
  462  needed to meet such energy supply requirements that will not be
  463  met by existing sources of supply and those reasonably certain
  464  to be available, where such analysis should identify system
  465  constraints and possible alternatives available, both supply
  466  side and demand-side alternatives, including, but not limited
  467  to, distributed generation, energy efficiency, and conservation
  468  measures, to redress such constraint.
  469         (b)Identifies and assesses the costs, risks, benefits, and
  470  uncertainties of energy supply source alternatives, including
  471  demand-reducing measures, renewable energy resources,
  472  distributed generation technologies, cogeneration technologies,
  473  and other methods and technologies reasonably available for
  474  satisfying energy supply requirements.
  475         (c)Identifies and analyzes emerging trends related to
  476  energy supply, price, and demand.
  477         (d)Identifies potential future sites for biomass power
  478  plants and solar power plants.
  479         (e)Identifies potential future sites for transmission and
  480  distribution lines.
  481         (f) Determines optimal percentages of fuels and
  482  technologies, both traditional and renewable, in the electric
  483  generation fleet for the next 10-year period.
  484         (g)Determines the process and timeline for incorporating
  485  renewable energy resources into the generation fleet, and
  486  addresses redundancy of plants, both necessary and unnecessary,
  487  and the retirement of unnecessary existing plants.
  488         (h) Determines if any changes should be made to capacity,
  489  including any additions or retirements, and if any additional
  490  transmission or distribution lines are necessary.
  491         (4) The commission shall consider the following in making a
  492  determination whether a renewable energy resource should be
  493  added to the generation and production fleet:
  494         (a)The societal benefits of renewable energy;
  495         (b)The necessity of maintaining an adequate and reliable
  496  source for energy and capacity needs;
  497         (c)The necessity of maintaining an adequate and reliable
  498  transmission and distribution grid;
  499         (d)The necessity to maintain fuel mix and diversity and
  500  source reliability and to minimize price fluctuations; and
  501         (e)The necessity of minimizing overall price impacts to
  502  ratepayers.
  503         (5)(a)A public utility may obtain additional renewable
  504  energy resources pursuant to this section if the commission
  505  determines that renewable energy resources should be added to
  506  the generation and production fleet by building a renewable
  507  energy facility, converting an existing fossil fuel facility to
  508  renewable energy, or purchasing renewable energy. All projects
  509  are subject to the same bid process as with any other generating
  510  facility. The provider must submit a bid if it seeks to self
  511  build the project.
  512         (b) The utility may recover all reasonable and prudently
  513  incurred costs for building a renewable energy facility,
  514  converting an existing fossil fuel facility to renewable energy,
  515  or purchasing renewable energy in base rates. All determinations
  516  of prudency of costs shall be made, giving consideration to the
  517  provisions and goals of this section and of the state energy
  518  resources plan.
  519         (c) All revenues from renewable energy credits or carbon
  520  credits shall be shared with ratepayers in a manner such that
  521  ratepayers receive a minimum of 90 percent of the revenue.
  522         (6)A determination by the commission that renewable energy
  523  resources should be added to the generation and production fleet
  524  constitutes a determination of need for those resources and is
  525  the determination of need required under s. 403.519 and the
  526  commission’s agency report required under s. 403.507(4)(a).
  527         (7)The Florida Energy Office may be a party to all
  528  proceedings under this section, and the Department of
  529  Agriculture and Consumer Services may be a party in any
  530  proceeding relating to biomass plants on issues relating to
  531  proper siting for proximity to foodstocks, forestry management,
  532  or related matters.
  533         (8)The commission shall review the state energy resources
  534  plan biennially.
  535         Section 6. All of the powers, duties, functions, records,
  536  personnel, and property; unexpended balances of appropriations,
  537  allocations, and other funds; administrative authority;
  538  administrative rules; pending issues; and existing contracts of
  539  the Florida Energy and Climate Commission are transferred by a
  540  type two transfer, pursuant to s. 20.06(2), Florida Statutes, to
  541  the Florida Energy Office.
  542         Section 7. Section 377.6015, Florida Statutes, is amended
  543  to read:
  544         377.6015 Florida Energy Office and Climate Commission.—
  545         (1)There is created within the Department of Environmental
  546  Protection the Florida Energy Office. The office is a separate
  547  budget entity and is exempt from the provisions of s. 20.052.
  548  The office is not subject to control, supervision, or direction
  549  by the Department of Environmental Protection in any manner,
  550  including purchasing, transactions involving real or personal
  551  property, personnel, or budgetary matters.
  552         (2)The office shall be headed by a director, who is the
  553  agency head for purposes of final agency action under chapter
  554  120 for all areas within the authority delegated to the
  555  director’s office. The director shall be appointed by the
  556  Governor and shall be subject to confirmation by the Senate.
  557         (3)The office shall have a sufficient number of
  558  professional and administrative personnel to carry out its
  559  responsibilities.
  560         (1) The Florida Energy and Climate Commission is created
  561  within the Executive Office of the Governor. The commission
  562  shall be comprised of nine members appointed by the Governor,
  563  the Commissioner of Agriculture, and the Chief Financial
  564  Officer.
  565         (a) The Governor shall appoint one member from three
  566  persons nominated by the Florida Public Service Commission
  567  Nominating Council, created in s. 350.031, to each of seven
  568  seats on the commission. The Commissioner of Agriculture shall
  569  appoint one member from three persons nominated by the council
  570  to one seat on the commission. The Chief Financial Officer shall
  571  appoint one member from three persons nominated by the council
  572  to one seat on the commission.
  573         1. The council shall submit the recommendations to the
  574  Governor, the Commissioner of Agriculture, and the Chief
  575  Financial Officer by September 1 of those years in which the
  576  terms are to begin the following October or within 60 days after
  577  a vacancy occurs for any reason other than the expiration of the
  578  term. The Governor, the Commissioner of Agriculture, and the
  579  Chief Financial Officer may proffer names of persons to be
  580  considered for nomination by the council.
  581         2. The Governor, the Commissioner of Agriculture, and the
  582  Chief Financial Officer shall fill a vacancy occurring on the
  583  commission by appointment of one of the applicants nominated by
  584  the council only after a background investigation of such
  585  applicant has been conducted by the Department of Law
  586  Enforcement.
  587         3. Members shall be appointed to 3-year terms; however, in
  588  order to establish staggered terms, for the initial
  589  appointments, the Governor shall appoint four members to 3-year
  590  terms, two members to 2-year terms, and one member to a 1-year
  591  term, and the Commissioner of Agriculture and the Chief
  592  Financial Officer shall each appoint one member to a 3-year term
  593  and shall appoint a successor when that appointee’s term expires
  594  in the same manner as the original appointment.
  595         4. The Governor shall select from the membership of the
  596  commission one person to serve as chair.
  597         5. A vacancy on the commission shall be filled for the
  598  unexpired portion of the term in the same manner as the original
  599  appointment.
  600         6. If the Governor, the Commissioner of Agriculture, or the
  601  Chief Financial Officer has not made an appointment within 30
  602  consecutive calendar days after the receipt of the
  603  recommendations, the council shall initiate, in accordance with
  604  this section, the nominating process within 30 days.
  605         7. Each appointment to the commission shall be subject to
  606  confirmation by the Senate during the next regular session after
  607  the vacancy occurs. If the Senate refuses to confirm or fails to
  608  consider the appointment of the Governor, the Commissioner of
  609  Agriculture, or the Chief Financial Officer, the council shall
  610  initiate, in accordance with this section, the nominating
  611  process within 30 days.
  612         8. The Governor or the Governor’s successor may recall an
  613  appointee.
  614         9.  Notwithstanding subparagraph 7. and for the initial
  615  appointments to the commission only, each initial appointment to
  616  the commission is subject to confirmation by the Senate by the
  617  2010 Regular Session. If the Senate refuses to confirm or fails
  618  to consider an appointment made by the Governor, the
  619  Commissioner of Agriculture, or the Chief Financial Officer, the
  620  council shall initiate, in accordance with this section, the
  621  nominating process within 30 days after the Senate’s refusal to
  622  confirm or failure to consider such appointment. This
  623  subparagraph expires July 1, 2010.
  624         (b) Members must meet the following qualifications and
  625  restrictions:
  626         1. A member must be an expert in one or more of the
  627  following fields: energy, natural resource conservation,
  628  economics, engineering, finance, law, transportation and land
  629  use, consumer protection, state energy policy, or another field
  630  substantially related to the duties and functions of the
  631  commission. The commission shall fairly represent the fields
  632  specified in this subparagraph.
  633         2. Each member shall, at the time of appointment and at
  634  each commission meeting during his or her term of office,
  635  disclose:
  636         a. Whether he or she has any financial interest, other than
  637  ownership of shares in a mutual fund, in any business entity
  638  that, directly or indirectly, owns or controls, or is an
  639  affiliate or subsidiary of, any business entity that may be
  640  affected by the policy recommendations developed by the
  641  commission.
  642         b. Whether he or she is employed by or is engaged in any
  643  business activity with any business entity that, directly or
  644  indirectly, owns or controls, or is an affiliate or subsidiary
  645  of, any business entity that may be affected by the policy
  646  recommendations developed by the commission.
  647         (c) The chair may designate the following ex officio,
  648  nonvoting members to provide information and advice to the
  649  commission at the request of the chair:
  650         1. The chair of the Florida Public Service Commission, or
  651  his or her designee.
  652         2. The Public Counsel, or his or her designee.
  653         3. A representative of the Department of Agriculture and
  654  Consumer Services.
  655         4. A representative of the Department of Financial
  656  Services.
  657         5. A representative of the Department of Environmental
  658  Protection.
  659         6. A representative of the Department of Community Affairs.
  660         7. A representative of the Board of Governors of the State
  661  University System.
  662         8. A representative of the Department of Transportation.
  663         (2) Members shall serve without compensation but are
  664  entitled to reimbursement for per diem and travel expenses as
  665  provided in s. 112.061.
  666         (3) Meetings of the commission may be held in various
  667  locations around the state and at the call of the chair;
  668  however, the commission must meet at least six times each year.
  669         (4) The office commission may:
  670         (a) Employ staff and counsel as needed in the performance
  671  of its duties.
  672         (b) Prosecute and defend legal actions in its own name.
  673         (c) Form advisory groups consisting of members of the
  674  public to provide information on specific issues.
  675         (5) The office commission shall:
  676         (a) Act as the principal economic development organization
  677  for the state on matters relating to renewable, alternative, or
  678  clean energy.
  679         1. The office shall market the state as a probusiness
  680  location for potential new energy-related investment in order to
  681  create new energy-related businesses and to retain and expand
  682  existing energy-related businesses. In doing so, the office
  683  shall work with Enterprise Florida, Inc., Space Florida, and all
  684  other governmental entities at all levels, and with all relevant
  685  private sector entities as necessary to facilitate the location
  686  of a business in this state by assisting those businesses in
  687  such matters as obtaining permits or licenses, determining
  688  appropriate tax laws and rules, and obtaining financing,
  689  incentives, grants, and other funding.
  690         2. The office shall work with the Florida Energy Systems
  691  Consortium to coordinate and promote Florida research on energy
  692  and to recruit energy researchers to Florida. As part of this
  693  role, the office shall serve as the clearinghouse for research
  694  information from universities and private sector entities that
  695  receive funding or other assistance from the state relating to
  696  their research projects.
  697         (b)(a) Administer the Florida Renewable Energy and Energy
  698  Efficient Technologies Grants Program pursuant to s. 377.804 to
  699  assure a robust grant portfolio.
  700         (c)(b) Develop policy for requiring grantees to provide
  701  royalty-sharing or licensing agreements with state government
  702  for commercialized products developed under a state grant.
  703         (d)(c) Administer the Florida Green Government Grants Act
  704  pursuant to s. 377.808 and set annual priorities for grants.
  705         (e)(d) Administer the information gathering and reporting
  706  functions pursuant to ss. 377.601-377.608.
  707         (e) Administer petroleum planning and emergency contingency
  708  planning pursuant to ss. 377.701, 377.703, and 377.704.
  709         (f) Represent Florida in the Southern States Energy Compact
  710  pursuant to ss. 377.71-377.712.
  711         (g) Complete the annual assessment of the efficacy of
  712  Florida’s Energy and Climate Change Action Plan, upon completion
  713  by the Governor’s Action Team on Energy and Climate Change
  714  pursuant to the Governor’s Executive Order 2007-128, and provide
  715  specific recommendations to the Governor and the Legislature
  716  each year to improve results.
  717         (g)(h) Administer the provisions of the Florida Energy and
  718  Climate Protection Act pursuant to ss. 377.801-377.806.
  719         (h)(i) Advocate for energy and climate change issues and
  720  provide educational outreach and technical assistance in
  721  cooperation with the state’s academic institutions.
  722         (j) Be a party in the proceedings to adopt goals and submit
  723  comments to the Public Service Commission pursuant to s. 366.82.
  724         (i)(k) Adopt rules pursuant to chapter 120 in order to
  725  implement all powers and duties described in this section.
  726         Section 8. This act shall take effect July 1, 2011.