Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. CS for CS for SB 1024
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Rules (Bradley) recommended the following:
    1         Senate Substitute for Amendment (384970) (with title
    2  amendment)
    4         Delete lines 44 - 126
    5  and insert:
    6         Section 2. Subsections (1) and (5) of section 366.91,
    7  Florida Statutes, are amended to read:
    8         366.91 Renewable energy.—
    9         (1) The Legislature finds that:
   10         (a) It is in the public interest to continue promote the
   11  development of renewable energy resources in this state in a
   12  manner that is fair and equitable to all public utility
   13  customers. Renewable energy resources have the potential to help
   14  diversify fuel types to meet Florida’s growing dependency on
   15  natural gas for electric production, minimize the volatility of
   16  fuel costs, encourage investment within the state, improve
   17  environmental conditions, and make Florida a leader in new and
   18  innovative technologies. The development and maturation of the
   19  solar energy industry, the substantial decline in the cost of
   20  solar panels, and the increase in customer-owned or -leased
   21  renewable generation support the redesign of net metering by the
   22  commission.
   23         (b)Customer-owned or -leased renewable generation is not
   24  available to many public utility customers who lack the
   25  financial resources to purchase or lease rooftop solar panels or
   26  who reside in multitenant buildings. The substantial growth of
   27  customer-owned or -leased renewable generation has resulted in
   28  increased cross-subsidization of the full cost of electric
   29  service onto the public utility’s general body of ratepayers.
   30  Therefore, the redesigned net metering rate structures required
   31  in subsection (5)(d) must ensure that public utility customers
   32  who own or lease renewable generation pay the full cost of
   33  electric service and are not cross-subsidized by the public
   34  utility’s general body of ratepayers.
   35         (5)(a)On or before January 1, 2009, Each public utility
   36  shall develop a standard standardized interconnection agreement
   37  and net metering program for customer-owned or -leased renewable
   38  generation. The commission shall establish requirements relating
   39  to the expedited interconnection and net metering of customer
   40  owned or -leased renewable generation by public utilities and
   41  shall may adopt new rules to administer this section.
   42         (b)Effective January 1, 2024, public utility net metering
   43  programs for customer-owned or -leased renewable generation must
   44  provide that:
   45         1.Electricity used by the customer in excess of the
   46  generation supplied by customer-owned or -leased renewable
   47  generation is billed by the public utility in accordance with
   48  normal billing practices; and
   49         2.Excess customer-owned or -leased renewable generation
   50  delivered to the public utility’s electric grid during the
   51  customer’s regular billing cycle is credited to the customer’s
   52  energy consumption for the next month’s billing cycle as
   53  follows:
   54         a.For energy credits produced from customer-owned or
   55  leased renewable generation for which a standard interconnection
   56  agreement is executed by both parties during calendar years 2024
   57  and 2025, the customer’s energy usage is offset by 75 percent of
   58  the amount credited.
   59         b.For energy credits produced from customer-owned or
   60  leased renewable generation for which a standard interconnection
   61  agreement is executed by both parties during calendar years 2026
   62  and 2027, the customer’s energy usage is offset by 50 percent of
   63  the amount credited.
   64         (c)A public utility customer who owns or leases renewable
   65  generation for which a standard interconnection agreement is
   66  executed by both parties before December 31, 2023, is granted 20
   67  years to continue to use the net metering rate design and rates
   68  that applied at the time the standard interconnection agreement
   69  was executed by both parties. This paragraph applies to
   70  customers who purchase or lease real property upon which
   71  customer-owned or -leased renewable generation is installed for
   72  all or part of that 20-year period.
   73         (d)The commission shall adopt subsequent rules to become
   74  effective January 1, 2028, which establish a new program design
   75  for customer-owned or -leased renewable generation for which a
   76  standard interconnection agreement was executed by both parties
   77  on or after January 1, 2028. The new program design must comply
   78  with the following criteria:
   79         1.Each public utility customer who owns or leases
   80  renewable generation must pay the full cost of electric service
   81  and may not be subsidized by the public utility’s general body
   82  of ratepayers after December 31, 2027.
   83         2.All energy delivered by the public utility must be
   84  purchased at the public utility’s applicable retail rate, and
   85  all energy delivered by the customer-owned or -leased renewable
   86  generation to the public utility must be credited to the
   87  customer at the public utility’s full avoided costs.
   88         3.The commission shall establish revised guidelines for
   89  net metering credits, netting intervals, fees, and charges as
   90  described herein, so as to ensure that the renewable generation
   91  subsidy is zero by January 1, 2028.
   92         (e)After the effective date of the subsequent net metering
   93  rules described in paragraph (d), a public utility may petition
   94  the commission for approval to impose fixed charges, including
   95  base facilities charges, electric grid access fees, or monthly
   96  minimum bills, to help ensure that the public utility recovers
   97  the fixed costs of serving customers who engage in net metering
   98  and that the general body of public utility ratepayers does not
   99  subsidize customer-owned or -leased renewable generation.
  100         (f)1.If at any time the statewide penetration rate of
  101  customer-owned or -leased renewable generation exceeds 6.5
  102  percent, the commission, upon petition or on its own motion,
  103  must initiate rulemaking to adopt a new program design that
  104  complies with subparagraphs (d)1. and 2. A new program design
  105  adopted pursuant to this subparagraph becomes effective 60 days
  106  after rule adoption and shall apply to customer-owned or -leased
  107  renewable generation for which a standard interconnection
  108  agreement was executed by both parties after that effective
  109  date.
  110         2.For purposes of this paragraph, the penetration rate
  111  must be calculated by dividing the aggregate gross power rating
  112  (alternating current) of all in-service customer-owned or
  113  leased renewable generation in all investor-owned electric
  114  utilities’ service territories by the total summer peak demand
  115  of all investor-owned electric utilities.
  116         (g)This subsection establishes the minimum requirements
  117  for each public utility net metering program. A public utility
  118  may petition the commission at any time for approval to offer a
  119  net metering program on terms that are more favorable to
  120  customers who own or lease renewable generation than the terms
  121  specified in this subsection or in commission rules adopted
  122  pursuant to this subsection.
  123         (h)The commission shall require a public utility
  124  requesting a change in base rates under s. 366.06 to report to
  125  the commission the impact of net metering on the public
  126  utility’s revenues and cost of service.
  128  ================= T I T L E  A M E N D M E N T ================
  129  And the title is amended as follows:
  130         Delete lines 9 - 15
  131  and insert:
  132         classes of ratepayers; providing the terms for public
  133         utility net metering programs after a specified date;
  134         authorizing certain customers who own or lease
  135         renewable generation to remain under the net metering
  136         rules that initially applied to those customers for a
  137         specified time; providing applicability; requiring the
  138         Public Service Commission to adopt rules that meet
  139         certain requirements by a specified date; authorizing
  140         public utilities to petition the commission, after a
  141         specified date, for approval of certain charges;
  142         providing conditions under which rulemaking must be
  143         initiated if the penetration rate of customer-owned or
  144         -leased renewable generation meets a specified
  145         threshold; authorizing public utilities to petition
  146         the commission to offer certain alternative net
  147         metering programs; requiring certain