Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 1162
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/21/2023           .                                

       The Committee on Regulated Industries (DiCeglie) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (9) of section 366.91, Florida
    6  Statutes, is amended, and subsections (10) and (11) are added to
    7  that section, to read:
    8         366.91 Renewable energy.—
    9         (9) A public utility’s The commission may approve cost
   10  recovery by a gas public utility for contracts for the purchase
   11  of renewable natural gas and hydrogen-based fuel in which the
   12  pricing provisions exceed the current market price of natural
   13  gas are eligible for cost recovery, but only if which are
   14  otherwise deemed reasonable and prudent by the commission finds
   15  that the contract meets the overall goals of subsection (1) by
   16  promoting the development or use of renewable energy resources
   17  in this state and providing fuel diversification and that the
   18  contract is otherwise reasonable.
   19         (10)A public utility may recover, through an appropriate
   20  cost-recovery mechanism administered by the commission,
   21  prudently incurred costs for renewable natural gas or hydrogen
   22  based fuel infrastructure projects. If the commission determines
   23  that such costs were reasonable, that the incremental bill
   24  impact will not result in an undue hardship to customers, and
   25  that the project will facilitate achieving the goals of
   26  subsection (1), those costs are not subject to disallowance or
   27  further prudence review except for fraud, perjury, or
   28  intentional withholding of key information by the public
   29  utility. For purposes of utility cost recovery pursuant to this
   30  subsection only, renewable natural gas may include a mixture of
   31  natural gas and renewable natural gas. Eligible renewable
   32  natural gas and hydrogen-based fuel infrastructure projects must
   33  be located in this state. Types of costs eligible for cost
   34  recovery include, but are not limited to, capital investment in
   35  projects necessary to prepare or produce renewable natural gas
   36  and hydrogen-based fuel for pipeline distribution and usage;
   37  capital investment in facilities, including pipelines, necessary
   38  to inject and deliver renewable natural gas and hydrogen-based
   39  fuel; renewable natural gas and hydrogen-based fuel storage
   40  facilities; operation and maintenance expenses associated with
   41  any such renewable natural gas and hydrogen-based fuel
   42  infrastructure projects; and an appropriate return on investment
   43  consistent with that allowed for other utility plants that
   44  provide service to customers.
   45         (11)Cost recovery for any renewable natural gas or
   46  hydrogen-based fuel infrastructure project sought pursuant to
   47  this section must be approved by the commission.
   48         (a) In assessing whether cost recovery for any renewable
   49  natural gas or hydrogen-based-based fuel infrastructure projects
   50  is appropriate, the commission shall consider whether the
   51  projected costs for such renewable natural gas or hydrogen-based
   52  fuel infrastructure projects are reasonable and consistent with
   53  subsection (10).
   54         (b)Recovery of costs incurred by a public utility for a
   55  renewable natural gas or hydrogen-based fuel infrastructure
   56  project approved for cost recovery under this section may not be
   57  allowed until such facility is placed in service. Upon approval
   58  of cost recovery by the commission, costs incurred before the
   59  facility is placed in service may be deferred on the public
   60  utility’s books for recovery once the facility is in service.
   61  This does not preclude application of any other regulatory
   62  accounting rules that are otherwise deemed appropriate,
   63  including, but not limited to, normal recovery of costs for
   64  construction work in progress.
   65         Section 2. This act shall take effect July 1, 2023.
   67  ================= T I T L E  A M E N D M E N T ================
   68  And the title is amended as follows:
   69         Delete everything before the enacting clause
   70  and insert:
   71                        A bill to be entitled                      
   72         An act relating to renewable energy cost recovery;
   73         amending s. 366.91, F.S.; revising the types of
   74         contracts which are eligible for cost recovery by a
   75         public utility under certain circumstances;
   76         authorizing a public utility to recover prudently
   77         incurred renewable natural gas or hydrogen-based fuel
   78         infrastructure project costs through an appropriate
   79         Florida Public Service Commission cost-recovery
   80         mechanism; providing that such costs are not subject
   81         to further actions except under certain circumstances;
   82         specifying eligible renewable natural gas and
   83         hydrogen-based fuel infrastructure projects; requiring
   84         that cost recovery for such projects be approved by
   85         the commission; providing requirements for the
   86         approval determination; prohibiting cost recovery
   87         until a facility is placed in service; providing that
   88         certain other regulatory accounting rules may apply to
   89         such cost recovery; providing an effective date.