HB 219

A bill to be entitled
2An act relating to renewable energy; providing legislative
3findings; providing definitions; requiring each electric
4utility in the state to collect from each residential,
5commercial, and industrial customer a designated monthly
6systems charge; requiring the electric utilities to
7deposit collected funds into the Sustainable and Renewable
8Energy Policy Trust Fund; creating a direct-support
9organization for the Florida Energy and Climate
10Commission; providing for a board of directors of the
11direct-support organization; providing for appointment of
12members and terms of office; requiring a contract between
13the commission and the direct-support organization;
14providing for the use of the deposited funds; requiring an
15annual audit; amending s. 366.91, F.S.; requiring that a
16purchase contract offered to producers of renewable energy
17contain payment provisions for energy and capacity based
18upon a public utility's equivalent cost-recovery rate for
19certain clean energy projects rather than the utility's
20full avoided costs; amending s. 377.806, F.S.; revising
21the expiration date for the Solar Energy System Incentives
22Program; extending the period of time for which residents
23of the state are eligible to receive rebates for specified
24solar energy systems; revising the rebate amount for
25eligible solar energy systems; providing a schedule for
26rebate amounts based on the total wattage of the system;
27amending s. 570.954, F.S.; correcting a reference;
28providing an effective date.
30Be It Enacted by the Legislature of the State of Florida:
32     Section 1.  (1)  The Legislature finds that there is a need
33for a funding mechanism to support and finance a comprehensive
34energy policy, especially as it relates to sustainable and
35renewable energy, energy conservation, and energy efficiencies.
36With such a stable funding mechanism, this state will realize
37important long-term goals, including:
38     (a)  Increased independence from foreign oil;
39     (b)  Ensuring an adequate and reliable energy supply;
40     (c)  The promotion of economic growth and new investment in
41the creation of high-paying jobs;
42     (d)  The mitigation adverse environmental impacts and
43promotion of stewardship of the environment;
44     (e)  Leading the nation in energy conservation and energy
45efficiencies through needed support for implementing and
46marketing the products of renewable energy research and
47innovation; and
48     (f)  Contributing to a sustainable and renewable energy
49policy for the state.
50     (2)  As used in this section, the term:
51     (a)  "Commission" means the Florida Energy and Climate
53     (b)  "Direct-support organization" means an organization
54that is:
55     1.  A Florida corporation, not for profit, incorporated
56under chapter 617, Florida Statutes, and approved by the
57Department of State;
58     2.  Organized and operated exclusively to obtain funds; to
59request and receive grants, gifts, and bequests of moneys; to
60acquire, receive, hold, invest, and administer in its own name
61securities, funds, or property; and to make expenditures to
62support the achievement of the goals stated under subsection (1)
63and to increase public awareness of and support for the
64Sustainable and Renewable Energy Trust Fund; and
65     3.  Determined by the commission to be operating in a
66manner consistent with the goals stated under subsection (1).
67     (c)  "Electric utility" means any municipal electric
68utility, investor-owned electric utility, or rural electric
69cooperative that owns, maintains, or operates an electric
70generation, transmission, or distribution system within the
72     (d)  "Energy conservation" and "energy efficiencies" means
73any activity that facilitates and promotes the use of cost-
74effective energy conservation, energy-demand management, and
75renewable energy technologies.
76     (e)  "Renewable energy" means solar photovoltaic energy,
77solar thermal energy, geothermal energy, ocean thermal energy,
78wave or tidal energy, wind, fuel cells, landfill gas, hydrogen
79production and hydrogen conversion technologies, low-emission
80advanced biomass conversion technologies, alternative fuels used
81for electricity generation, including ethanol, biodiesel, or
82other fuel produced in this state and derived from agricultural
83produce, algae, food waste, or waste vegetable oil, usable
84electricity from combined heat and power systems that have waste
85heat recovery systems, thermal storage systems, and other energy
86resources and emerging technologies that have significant
87potential for commercialization and that do not involve the
88combustion of coal, petroleum or petroleum products, municipal
89solid waste, or nuclear fission.
90     (3)  Beginning January 1, 2012, each electric utility shall
91collect from each residential, commercial, and industrial
92electric utility customer a monthly charge of 25 cents as a
93systems benefits charge. The electric utilities shall deposit
94the collected funds into the Sustainable and Renewable Energy
95Policy Trust Fund.
96     (4)(a)  The Florida Energy and Climate Commission shall
97establish a direct-support organization to provide assistance,
98funding, and support for the commission in carrying out its
99mission. This section governs the creation, use, powers, and
100duties of the direct-support organization.
101     (b)  The direct-support organization shall be governed by a
102board of directors. The board of directors shall consist of nine
103members, as follows:
104     1.  The chair of the Florida Public Service Commission, or
105his or her designee.
106     2.  The Secretary of Environmental Protection, or his or
107her designee.
108     3.  Two members appointed by the Governor, both of whom are
109residential electric utility customers and one of whom has
110experience relating to low-income housing concerns.
111     4.  Two members appointed by the President of the Senate.
112     5.  Two members appointed by the Speaker of the House of
114     6.  One member appointed by the Chief Financial Officer who
115has experience related to renewable energy business or
116commercial investments.
117     (c)  The term of office of the board members shall be 3
118years. The terms of the initial appointees shall be for 1 year,
1192 years, or 3 years in order to achieve staggered terms. A
120member may be reappointed when his or her term expires. The head
121of the commission or his or her designee shall serve as an ex
122officio member of the board of directors.
123     (d)  Members must be residents of this state. A majority of
124the members must be actively involved with sustainable and
125renewable energy systems and highly knowledgeable about the
126commission, its research, and its mission. A member may be
127removed by the Governor, the President of the Senate, the
128Speaker of the House of Representatives, or the Chief Financial
129Officer for cause and with the approval of a majority of the
130members of the board of directors. A vacancy shall be filled in
131the same manner as the initial appointment.
132     (e)  The direct-support organization shall operate under a
133written contract with the commission. The written contract must
134provide for:
135     1.  Certification by the commission that the direct-support
136organization is complying with the terms of the contract and is
137doing so consistent with the goals and purposes of the
138department and in the best interests of the state. This
139certification must be made annually and reported in the official
140minutes of a meeting of the direct-support organization.
141     2.  The reversion of moneys and property held by the
142direct-support organization:
143     a.  To the commission, if the direct-support organization
144is no longer approved to operate for the commission or if the
145direct support organization ceases to exist; or
146     b.  To the state, if the commission ceases to exist.
147     3.  The disclosure of the material provisions of the
148contract and the distinction between the commission and the
149direct-support organization to donors of gifts, contributions,
150or bequests, including such disclosure on all promotional and
151fundraising publications.
152     (f)1.  The commission may permit the use of its property,
153facilities, and personal services by the direct-support
154organization, subject to this section.
155     2.  The commission may prescribe by contract any condition
156with which the direct-support organization must comply in order
157to use property, facilities, or personal services of the
159     3.  The commission may not permit the use of its property,
160facilities, or personal services by any direct-support
161organization organized under this section which does not provide
162equal employment opportunities to all persons regardless of
163race, color, national origin, gender, age, or religion.
164     (g)  Any transaction or agreement between the direct-
165support organization created by this section and another direct-
166support organization or other entity must be approved by the
168     (h)  All moneys received by the direct-support organization
169from federal and state grants, private contributions, and the
170Sustainable and Renewable Energy Policy Trust Fund shall be
171deposited into an account of the direct-support organization.
172The direct-support organization shall use the collected charges
173to support funding for sustainable and renewable energy
174projects, including, but not limited to, grants to provide
175funding in the following order of priority:
176     1.  Any backlog of approved rebate applications for the
177Solar Energy Systems Incentive Program.
178     2.  The implementation of innovation to market projects,
179with specific attention directed toward the number of in-state
180jobs created.
181     3.  Energy conservation and energy efficiency projects,
182with specific attention directed to projects for low-income
183housing, including rental units, rental homes, condominiums, and
184single-family homes.
185     (i)1.  The fiscal year of the direct-support organization
186shall begin on July 1 of each year and end on June 30 of the
187following year.
188     2.  The direct-support organization shall submit to the
189commission its federal Internal Revenue Service Application for
190Recognition of Exemption form and its federal Internal Revenue
191Service Return of Organization Exempt from Income Tax form.
192     (j)  The direct-support organization shall provide for an
193annual financial audit in accordance with s. 215.981, Florida
195     Section 2.  Subsection (3) of section 366.91, Florida
196Statutes, is amended to read:
197     366.91  Renewable energy.-
198     (3)  On or before January 1, 2006, each public utility must
199continuously offer a purchase contract to producers of renewable
200energy. The commission shall establish requirements relating to
201the purchase of capacity and energy by public utilities from
202renewable energy producers and may adopt rules to administer
203this section. The contract shall contain payment provisions for
204energy and capacity which are based upon the utility's
205equivalent cost-recovery rate for projects constructed pursuant
206to s. 366.92(4) full avoided costs, as defined in s. 366.051;
207however, capacity payments are not required if, due to the
208operational characteristics of the renewable energy generator or
209the anticipated peak and off-peak availability and capacity
210factor of the utility's avoided unit, the producer is unlikely
211to provide any capacity value to the utility or the electric
212grid during the contract term. Each contract must provide a
213contract term of at least 10 years. Prudent and reasonable costs
214associated with a renewable energy contract shall be recovered
215from the ratepayers of the contracting utility, without
216differentiation among customer classes, through the appropriate
217cost-recovery clause mechanism administered by the commission.
218     Section 3.  Subsection (1) and paragraph (b) of subsection
219(2) of section 377.806, Florida Statutes, are amended to read:
220     377.806  Solar Energy System Incentives Program.-
221     (1)  PURPOSE.-The Solar Energy System Incentives Program is
222established within the commission to provide financial
223incentives for the purchase and installation of solar energy
224systems. Any resident of the state who purchases and installs a
225new solar energy system of 2 kilowatts or larger for a solar
226photovoltaic system, a solar energy system that provides at
227least 50 percent of a building's hot water consumption for a
228solar thermal system, or a solar thermal pool heater, from July
2291, 2006, through June 30, 2016 2010, is eligible for a rebate on
230a portion of the purchase price of that solar energy system.
232     (b)  Rebate amounts.-The rebate amount shall be set at
233$2.50 $4 per watt for fiscal year 2011-2012, $2 per watt for
234fiscal years 2012-2013 and 2013-2014, and $1.50 per watt for
235each subsequent fiscal year, based on the total wattage rating
236of the system. The maximum allowable rebate per solar
237photovoltaic system installation shall be as follows:
238     1.  Twenty thousand dollars for a residence.
239     2.  One hundred thousand dollars for a place of business, a
240publicly owned or operated facility, or a facility owned or
241operated by a private, not-for-profit organization, including
242condominiums or apartment buildings.
243     Section 4.  Subsection (3) of section 570.954, Florida
244Statutes, is amended to read:
245     570.954  Farm-to-fuel initiative.-
246     (3)  The department shall coordinate with and solicit the
247expertise of the Florida Energy and Climate Commission state
248energy office within the Department of Environmental Protection
249when developing and implementing this initiative.
250     Section 5.  This act shall take effect July 1, 2011.

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