Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. CS for CS for SB 1024 Ì384970;Î384970 LEGISLATIVE ACTION Senate . House Comm: RS . 03/02/2022 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Rules (Bradley) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 44 - 126 4 and insert: 5 Section 2. Subsections (1) and (5) of section 366.91, 6 Florida Statutes, are amended to read: 7 366.91 Renewable energy.— 8 (1) The Legislature finds that: 9 (a) It is in the public interest to continuepromotethe 10 development of renewable energy resources in this state in a 11 manner that is fair and equitable to all public utility 12 customers. Renewable energy resources have the potential to help 13 diversify fuel types to meet Florida’s growing dependency on 14 natural gas for electric production, minimize the volatility of 15 fuel costs, encourage investment within the state, improve 16 environmental conditions, and make Florida a leader in new and 17 innovative technologies. The development and maturation of the 18 solar energy industry, the substantial decline in the cost of 19 solar panels, and the increase in customer-owned or leased 20 renewable generation support the redesign of net metering by the 21 commission. 22 (b) Customer-owned or leased renewable generation is not 23 available to many public utility customers who lack the 24 financial resources to purchase or lease rooftop solar panels or 25 who reside in multitenant buildings. The substantial growth of 26 customer-owned or leased renewable generation has resulted in 27 increased cross-subsidization of the full cost of electric 28 service onto the public utility’s general body of ratepayers. 29 Therefore, the redesigned net metering rate structures required 30 in subsection (5)(d) must ensure that public utility customers 31 who own or lease renewable generation pay the full cost of 32 electric service and are not cross-subsidized by the public 33 utility’s general body of ratepayers. 34 (5)(a)On or before January 1, 2009,Each public utility 35 shall develop a standardized interconnection agreement and net 36 metering program for customer-owned or leased renewable 37 generation. The commission shall establish requirements relating 38 to the expedited interconnection and net metering of customer 39 owned or leased renewable generation by public utilities and 40 shallmayadopt new rules to administer this section. 41 (b) Effective January 1, 2024, public utility net metering 42 programs for customer-owned or leased renewable generation must 43 provide that: 44 1. Electricity used by the customer in excess of the 45 generation supplied by customer-owned or leased renewable 46 generation is billed by the public utility in accordance with 47 normal billing practices; and 48 2. Excess customer-owned or leased renewable generation 49 delivered to the public utility’s electric grid during the 50 customer’s regular billing cycle is credited to the customer’s 51 energy consumption for the next month’s billing cycle as 52 follows: 53 a. For energy credits produced from customer-owned or 54 leased renewable generation for which a net metering application 55 is approved during calendar years 2024 and 2025, an amount equal 56 to 75 percent of the public utility’s retail rate. 57 b. For energy credits produced from customer-owned or 58 leased renewable generation for which a net metering application 59 is approved during calendar years 2026 and 2027, an amount equal 60 to 50 percent of the public utility’s retail rate. 61 (c) A public utility customer who owns or leases renewable 62 generation for which a net metering application is approved 63 before December 31, 2023, pursuant to a standard interconnection 64 agreement offered by a public utility, is granted 20 years to 65 continue to use the net metering rate design and rates that 66 applied at the time the net metering application was approved. 67 This paragraph applies to customers who purchase or lease real 68 property upon which customer-owned or leased renewable 69 generation is installed for all or part of that 20-year period. 70 (d) The commission shall adopt subsequent rules to become 71 effective January 1, 2028, which establish a new program design 72 for customer-owned or leased renewable generation for which a 73 net metering application is approved on or after January 1, 74 2028. The new program design must comply with the following 75 criteria: 76 1. Each public utility customer who owns or leases 77 renewable generation must pay the full cost of electric service 78 and may not be subsidized by the public utility’s general body 79 of ratepayers after December 31, 2027. 80 2. All energy delivered by the public utility must be 81 purchased at the public utility’s applicable retail rate, and 82 all energy delivered by the customer-owned or leased renewable 83 generation to the public utility must be credited to the 84 customer at the public utility’s full avoided costs. 85 3. The commission shall establish revised guidelines for 86 net metering credits, netting intervals, fees, and charges as 87 described herein, so as to ensure that the renewable generation 88 subsidy is zero by January 1, 2028. 89 4. The net metering guidelines may include fixed charges, 90 including base facilities charges, electric grid access fees, or 91 monthly minimum bills, to help ensure that the public utility 92 recovers the fixed costs of serving customers who engage in net 93 metering and that the general body of public utility ratepayers 94 does not subsidize customer-owned or leased renewable 95 generation. 96 (e)1. If at any time the statewide penetration rate of 97 customer-owned or leased renewable generation exceeds 6.5 98 percent, the commission, upon petition or on its own motion, 99 must initiate rulemaking to adopt a new program design that 100 complies with subparagraphs (d)1. and 2. A new program design 101 adopted pursuant to this subparagraph becomes effective 60 days 102 after rule adoption or 60 days after the date the commission 103 determines that the actual penetration rate has reached 6.5 104 percent, whichever is later, and shall apply to customer-owned 105 or leased renewable generation for which a net metering 106 application is approved after that effective date. 107 2. For purposes of this paragraph, the penetration rate 108 must be calculated by dividing the aggregate total summer peak 109 demand of the public utility by the gross power rating 110 (alternating current) of all in-service customer-owned or leased 111 renewable generation in the public utility’s service territory. 112 (f) This subsection establishes the minimum requirements 113 for each public utility net metering program. A public utility 114 may petition the commission at any time for approval to offer a 115 net metering program on terms that are more favorable to 116 customers who own or lease renewable generation than the terms 117 specified in this subsection or in commission rules adopted 118 pursuant to this subsection. 119 120 ================= T I T L E A M E N D M E N T ================ 121 And the title is amended as follows: 122 Delete lines 9 - 17 123 and insert: 124 classes of ratepayers; providing the terms for public 125 utility net metering programs after a specified date; 126 authorizing certain customers who own or lease 127 renewable generation to remain under the net metering 128 rules that initially applied to those customers for a 129 specified time; requiring the Public Service 130 Commission to adopt rules that meet certain 131 requirements by a specified date; providing conditions 132 under which rulemaking must be initiated if the 133 penetration rate of customer-owned or leased renewable 134 generation meets a specified threshold; authorizing 135 public utilities to petition the commission to offer 136 certain alternative net metering programs; providing 137 an effective date.