Florida Senate - 2022                             CS for SB 1764
       
       
        
       By the Committee on Appropriations; and Senator Albritton
       
       
       
       
       
       576-03238-22                                          20221764c1
    1                        A bill to be entitled                      
    2         An act relating to the Municipal Solid Waste-to-Energy
    3         Program; creating s. 377.814, F.S.; creating the
    4         Municipal Solid Waste-to-Energy Program within the
    5         Department of Agriculture and Consumer Services for a
    6         specified purpose; defining terms; requiring the
    7         department, subject to appropriation, to provide
    8         annual financial assistance grants to municipal solid
    9         waste-to-energy facilities that meet certain
   10         requirements; requiring the department to distribute
   11         funds to qualifying applicants based on certain
   12         criteria; requiring the department to establish a
   13         process to verify the amount of certain electric power
   14         purchases; directing the Public Service Commission to
   15         provide assistance in verifying grant eligibility;
   16         requiring the department, subject to appropriation, to
   17         provide incentive grants to municipal solid waste-to
   18         energy facilities to assist with certain costs;
   19         specifying requirements for applying for the funding;
   20         requiring the Department of Environmental Protection
   21         to provide assistance in determining grant eligibility
   22         and establishing requirements; requiring the
   23         department to perform grant overview; prohibiting
   24         funds from being used for specified purposes;
   25         establishing priority for funding for the grants;
   26         requiring the Department of Agriculture and Consumer
   27         Services to adopt rules; providing appropriations;
   28         authorizing the balance of certain unexpended funds to
   29         be carried forward for a specified number of years;
   30         authorizing positions; providing an effective date.
   31  
   32         WHEREAS, as provided in s. 366.91(1), Florida Statutes, the
   33  Legislature has determined that it is in the public interest to
   34  promote the development of renewable energy resources in this
   35  state, and
   36         WHEREAS, under s. 366.91, Florida Statutes, municipal solid
   37  waste-to-energy facilities that use biomass as a fuel or energy
   38  source are deemed to be producing renewable energy, and
   39         WHEREAS, municipal solid waste-to-energy facilities provide
   40  a practical and sustainable solution to reducing landfill waste,
   41  reducing volume by about 87 percent, and
   42         WHEREAS, the Legislature recognizes the benefits that
   43  municipal solid waste-to-energy facilities contribute to the
   44  state and its local communities, and
   45         WHEREAS, the Legislature intends to incentivize the
   46  production and sale of energy from municipal solid waste-to
   47  energy facilities through grant programs, NOW, THEREFORE,
   48  
   49  Be It Enacted by the Legislature of the State of Florida:
   50  
   51         Section 1. Section 377.814, Florida Statutes, is created to
   52  read:
   53         377.814Municipal Solid Waste-to-Energy Program.—
   54         (1)CREATION AND PURPOSE OF THE PROGRAM.—The Municipal
   55  Solid Waste-to-Energy Program is created within the department.
   56  The purpose of the program is to provide financial assistance
   57  grants and incentive grants to municipal solid waste-to-energy
   58  facilities to incentivize the production and sale of energy from
   59  municipal solid waste-to-energy facilities while also reducing
   60  the amount of waste that would otherwise be disposed of in a
   61  landfill.
   62         (2) DEFINITIONS.—For purposes of this section, the term:
   63         (a) “Department” means the Department of Agriculture and
   64  Consumer Services.
   65         (b) “Municipal solid waste-to-energy facility” means a
   66  publicly owned or government affiliate-owned facility that uses
   67  an enclosed device using controlled combustion to thermally
   68  break down solid waste to an ash residue that contains little or
   69  no combustible material and that produces electricity, steam, or
   70  other energy as a result. The term does not include facilities
   71  that primarily burn fuels other than solid waste even if such
   72  facilities also burn some solid waste as a fuel supplement. The
   73  term does not include facilities that primarily burn vegetative,
   74  agricultural, or silvicultural wastes, bagasse, clean dry wood,
   75  methane or other landfill gas, wood fuel derived from
   76  construction or demolition debris, or waste tires, alone or in
   77  combination with fossil fuels.
   78         (3)FINANCIAL ASSISTANCE GRANT PROGRAM.—The department,
   79  subject to appropriation, shall provide annual financial
   80  assistance grants to municipal solid waste-to-energy facilities
   81  that entered into a power purchase agreement with an electric
   82  utility before January 1, 2022, which included capacity and
   83  energy payments, and the owner of the municipal solid waste-to
   84  energy facility has entered into a new or amended power purchase
   85  agreement that either no longer includes capacity payments or
   86  includes capacity and energy payments in an amount less than the
   87  total of the capacity and energy payments the municipal solid
   88  waste-to-energy facility received under the power purchase
   89  agreement entered into before January 1, 2022.
   90         (a) To apply for an annual financial assistance grant, the
   91  owner of a municipal solid waste-to-energy facility must submit
   92  an application to the department. The application must include
   93  the name of the applicant’s municipal solid waste-to-energy
   94  facility, the name of the utility purchasing the electric power
   95  from the municipal solid waste-to-energy facility, the total
   96  capacity and energy payment the municipal solid waste-to-energy
   97  facility received during the last year of the power purchase
   98  agreement entered into before January 1, 2022, and the amount of
   99  energy delivered to and the total amount paid for such power by
  100  an electric utility pursuant to a new or amended power purchase
  101  agreement during the preceding state fiscal year.
  102         (b) The department shall distribute funds, subject to
  103  appropriation, to each qualifying applicant at a rate of 2 cents
  104  per kilowatt-hour of electric power purchased by an electric
  105  utility during the preceding state fiscal year, not to exceed
  106  the difference between the total capacity and energy payment the
  107  municipal solid waste-to-energy facility received during the
  108  last year of the power purchase agreement entered into before
  109  January 1, 2022, and the total of the capacity and energy
  110  payment the municipal solid waste-to-energy facility received
  111  under a new or amended power purchase agreement during the
  112  preceding state fiscal year. To the extent that funds are not
  113  available to provide financial assistance to each qualifying
  114  applicant for every qualifying kilowatt-hour purchased, the
  115  department shall prorate the funds on an equitable basis.
  116         (c) The department shall establish a process to verify the
  117  amount of electric power purchased from a municipal solid waste
  118  to-energy facility by an electric utility during each preceding
  119  state fiscal year. The Public Service Commission shall provide
  120  assistance to the department to help verify the information
  121  provided pursuant to paragraph (a).
  122         (4)INCENTIVE GRANT PROGRAM.—The department, subject to
  123  appropriation, shall provide incentive grants to municipal solid
  124  waste-to-energy facilities to assist with the planning and
  125  designing for constructing, upgrading, or expanding a municipal
  126  solid waste-to-energy facility, including necessary legal or
  127  administrative expenses.
  128         (a)To qualify for an incentive grant, the owner of a
  129  municipal solid waste-to-energy facility must apply to the
  130  department for funding; provide matching funds on a dollar-for
  131  dollar basis; and demonstrate that the project is cost
  132  effective, permittable, and implementable and complies with s.
  133  403.7061.
  134         (b) The Department of Environmental Protection shall
  135  provide assistance to the department in determining the
  136  eligibility of grant applications and establishing requirements
  137  to ensure the long-term and efficient operation and maintenance
  138  of facilities constructed or expanded under an incentive grant.
  139         (c)The department shall perform adequate overview of each
  140  grant application and grant award, including technical review,
  141  regular inspections, disbursement approvals, and auditing, to
  142  implement this section.
  143         (d) Funds awarded under the incentive grant program may not
  144  be used to promote, establish, or convert a residential
  145  collection system that does not provide for the separate
  146  collection of residential solid waste from recovered materials
  147  as defined in s. 403.703.
  148         (e) The department shall require the termination or
  149  repayment of incentive grant funds if the department determines
  150  that program requirements are not being met.
  151         (5)FUNDING.—Funds appropriated for the Municipal Solid
  152  Waste-to-Energy Program must first be used for financial
  153  assistance grants. Any funds remaining in a state fiscal year
  154  after disbursement to all qualifying applicants may be used to
  155  fund the incentive grant program.
  156         (6) RULES.—The department shall adopt rules to implement
  157  and administer this section, including establishing grant
  158  application processes for financial assistance grants and
  159  incentive grants. The rules shall include application deadlines
  160  and establish the supporting documentation necessary to be
  161  provided to the department. In adopting rules relating to the
  162  financial assistance grant program, the department shall consult
  163  the Public Service Commission. In adopting rules for the
  164  incentive grant program, the department shall consult the
  165  Department of Environmental Protection.
  166         Section 2. (1)For the 2022-2023 fiscal year, the sum of
  167  $100 million in recurring funds is appropriated from the General
  168  Revenue Fund to the Department of Agriculture and Consumer
  169  Services for the Municipal Solid Waste-to-Energy Program, as
  170  provided in s. 377.814, Florida Statutes.
  171         (2)Notwithstanding s. 216.301, Florida Statutes, and
  172  pursuant to s. 216.351, Florida Statutes, funds allocated for
  173  the purpose of this section which are not disbursed by June 30
  174  of the fiscal year in which the funds are allocated may be
  175  carried forward for up to 5 years after the effective date of
  176  the original appropriation.
  177         Section 3. For the 2022-2023 fiscal year, the sums of
  178  $149,832 in recurring funds and $9,984 in nonrecurring funds are
  179  appropriated from the General Revenue Fund to the Department of
  180  Agriculture and Consumer Services, and two full-time equivalent
  181  positions with associated salary rate of 80,540 are authorized,
  182  for the purpose of implementing this act.
  183         Section 4. This act shall take effect July 1, 2022.