Florida Senate - 2022               CS for CS for CS for SB 1024
       By the Committees on Rules; Community Affairs; and Regulated
       Industries; and Senator Bradley
       595-03655-22                                          20221024c3
    1                        A bill to be entitled                      
    2         An act relating to renewable energy generation;
    3         amending s. 163.04, F.S.; authorizing certain entities
    4         to prohibit the installation of solar collectors under
    5         certain circumstances; amending s. 366.91, F.S.;
    6         revising and providing legislative findings relating
    7         to the redesign of net metering to avoid cross
    8         subsidization of electric service costs between
    9         classes of ratepayers; providing the terms for public
   10         utility net metering programs after a specified date;
   11         authorizing certain customers who own or lease
   12         renewable generation to remain under the net metering
   13         rules that initially applied to those customers for a
   14         specified time; providing applicability; requiring the
   15         Public Service Commission to adopt rules that meet
   16         certain requirements by a specified date; authorizing
   17         public utilities to petition the commission, after a
   18         specified date, for approval of certain charges;
   19         providing conditions under which rulemaking must be
   20         initiated if the penetration rate of customer-owned or
   21         -leased renewable generation meets a specified
   22         threshold; authorizing public utilities to petition
   23         the commission to offer certain alternative net
   24         metering programs; requiring certain public utilities
   25         to provide a specified report to the commission;
   26         providing an effective date.
   28  Be It Enacted by the Legislature of the State of Florida:
   30         Section 1. Subsection (2) of section 163.04, Florida
   31  Statutes, is amended to read:
   32         163.04 Energy devices based on renewable resources.—
   33         (2) A deed restriction, covenant, declaration, or similar
   34  binding agreement may not prohibit or have the effect of
   35  prohibiting solar collectors, clotheslines, or other energy
   36  devices based on renewable resources from being installed on
   37  buildings erected on the lots or parcels covered by the deed
   38  restriction, covenant, declaration, or binding agreement. A
   39  property owner may not be denied permission to install solar
   40  collectors or other energy devices by any entity granted the
   41  power or right in any deed restriction, covenant, declaration,
   42  or similar binding agreement to approve, forbid, control, or
   43  direct alteration of property with respect to residential
   44  dwellings and within the boundaries of a condominium unit. Such
   45  entity may:
   46         (a) Determine the specific location where solar collectors
   47  may be installed on the roof within an orientation to the south
   48  or within 45 degrees 45° east or west of due south if such
   49  determination does not impair the effective operation of the
   50  solar collectors; and
   51         (b) Prohibit the installation of solar collectors in
   52  locations beyond the parameters specified in paragraph (a).
   53         Section 2. Subsections (1) and (5) of section 366.91,
   54  Florida Statutes, are amended to read:
   55         366.91 Renewable energy.—
   56         (1) The Legislature finds that:
   57         (a) It is in the public interest to continue promote the
   58  development of renewable energy resources in this state in a
   59  manner that is fair and equitable to all public utility
   60  customers. Renewable energy resources have the potential to help
   61  diversify fuel types to meet Florida’s growing dependency on
   62  natural gas for electric production, minimize the volatility of
   63  fuel costs, encourage investment within the state, improve
   64  environmental conditions, and make Florida a leader in new and
   65  innovative technologies. The development and maturation of the
   66  solar energy industry, the substantial decline in the cost of
   67  solar panels, and the increase in customer-owned or -leased
   68  renewable generation support the redesign of net metering by the
   69  commission.
   70         (b)Customer-owned or -leased renewable generation is not
   71  available to many public utility customers who lack the
   72  financial resources to purchase or lease rooftop solar panels or
   73  who reside in multitenant buildings. The substantial growth of
   74  customer-owned or -leased renewable generation has resulted in
   75  increased cross-subsidization of the full cost of electric
   76  service onto the public utility’s general body of ratepayers.
   77  Therefore, the redesigned net metering rate structures required
   78  in paragraph (5)(d) must ensure that public utility customers
   79  who own or lease renewable generation pay the full cost of
   80  electric service and are not cross-subsidized by the public
   81  utility’s general body of ratepayers.
   82         (5)(a)On or before January 1, 2009, Each public utility
   83  shall develop a standard standardized interconnection agreement
   84  and net metering program for customer-owned or -leased renewable
   85  generation. The commission shall establish requirements relating
   86  to the expedited interconnection and net metering of customer
   87  owned or -leased renewable generation by public utilities and
   88  shall may adopt new rules to administer this section.
   89         (b)Effective January 1, 2024, public utility net metering
   90  programs for customer-owned or -leased renewable generation must
   91  provide that:
   92         1.Electricity used by the customer in excess of the
   93  generation supplied by customer-owned or -leased renewable
   94  generation is billed by the public utility in accordance with
   95  normal billing practices; and
   96         2.Excess customer-owned or -leased renewable generation
   97  delivered to the public utility’s electric grid during the
   98  customer’s regular billing cycle is credited to the customer’s
   99  energy consumption for the next month’s billing cycle as
  100  follows:
  101         a.For energy credits produced from customer-owned or
  102  leased renewable generation for which a standard interconnection
  103  agreement is executed by both parties during calendar years 2024
  104  and 2025, the customer’s energy usage is offset by 75 percent of
  105  the amount credited.
  106         b.For energy credits produced from customer-owned or
  107  leased renewable generation for which a standard interconnection
  108  agreement is executed by both parties during calendar years 2026
  109  and 2027, the customer’s energy usage is offset by 50 percent of
  110  the amount credited.
  111         (c)A public utility customer who owns or leases renewable
  112  generation for which a standard interconnection agreement is
  113  executed by both parties before December 31, 2023, is granted 20
  114  years to continue to use the net metering rate design and rates
  115  that applied at the time the standard interconnection agreement
  116  was executed by both parties. This paragraph applies to
  117  customers who purchase or lease real property upon which
  118  customer-owned or -leased renewable generation is installed for
  119  all or part of that 20-year period.
  120         (d)The commission shall adopt subsequent rules to become
  121  effective January 1, 2028, which establish a new program design
  122  for customer-owned or -leased renewable generation for which a
  123  standard interconnection agreement was executed by both parties
  124  on or after January 1, 2028. The new program design must comply
  125  with the following criteria:
  126         1.Each public utility customer who owns or leases
  127  renewable generation must pay the full cost of electric service
  128  and may not be subsidized by the public utility’s general body
  129  of ratepayers after December 31, 2027.
  130         2.All energy delivered by the public utility must be
  131  purchased at the public utility’s applicable retail rate, and
  132  all energy delivered by the customer-owned or -leased renewable
  133  generation to the public utility must be credited to the
  134  customer at the public utility’s full avoided costs.
  135         3.The commission shall establish revised guidelines for
  136  net metering credits, netting intervals, fees, and charges as
  137  described herein, so as to ensure that the renewable generation
  138  subsidy is zero by January 1, 2028.
  139         (e)After the effective date of the subsequent net metering
  140  rules described in paragraph (d), a public utility may petition
  141  the commission for approval to impose fixed charges, including
  142  base facilities charges, electric grid access fees, or monthly
  143  minimum bills, to help ensure that the public utility recovers
  144  the fixed costs of serving customers who engage in net metering
  145  and that the general body of public utility ratepayers does not
  146  subsidize customer-owned or -leased renewable generation.
  147         (f)1.If at any time the statewide penetration rate of
  148  customer-owned or -leased renewable generation exceeds 6.5
  149  percent, the commission, upon petition or on its own motion,
  150  must initiate rulemaking to adopt a new program design that
  151  complies with subparagraphs (d)1. and 2. A new program design
  152  adopted pursuant to this subparagraph becomes effective 60 days
  153  after rule adoption and shall apply to customer-owned or -leased
  154  renewable generation for which a standard interconnection
  155  agreement was executed by both parties after that effective
  156  date.
  157         2.For purposes of this paragraph, the penetration rate
  158  must be calculated by dividing the aggregate gross power rating
  159  (alternating current) of all in-service customer-owned or
  160  leased renewable generation in all investor-owned electric
  161  utilities’ service territories by the total summer peak demand
  162  of all investor-owned electric utilities.
  163         (g)This subsection establishes the minimum requirements
  164  for each public utility net metering program. A public utility
  165  may petition the commission at any time for approval to offer a
  166  net metering program on terms that are more favorable to
  167  customers who own or lease renewable generation than the terms
  168  specified in this subsection or in commission rules adopted
  169  pursuant to this subsection.
  170         (h)The commission shall require a public utility
  171  requesting a change in base rates under s. 366.06 to report to
  172  the commission the impact of net metering on the public
  173  utility’s revenues and cost of service.
  174         Section 3. This act shall take effect July 1, 2022.