Florida Senate - 2023                                    SB 1162
       
       
        
       By Senator DiCeglie
       
       
       
       
       
       18-00696A-23                                          20231162__
    1                        A bill to be entitled                      
    2         An act relating to renewable energy cost recovery;
    3         amending s. 366.91, F.S.; revising the types of
    4         contracts which are eligible for cost recovery by a
    5         public utility under certain circumstances;
    6         authorizing a public utility to recover prudently
    7         incurred renewable natural gas and hydrogen fuel
    8         infrastructure project costs through the appropriate
    9         Public Service Commission cost-recovery mechanism;
   10         providing that such costs prudently incurred are not
   11         subject to further actions except under certain
   12         circumstances; specifying eligible renewable natural
   13         gas and hydrogen fuel infrastructure projects;
   14         providing an effective date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Subsection (9) of section 366.91, Florida
   19  Statutes, is amended, and subsection (10) is added to that
   20  section, to read:
   21         366.91 Renewable energy.—
   22         (9) The commission may approve cost recovery by a gas
   23  public utility for Contracts for the purchase of renewable
   24  natural gas and hydrogen in which the pricing provisions exceed
   25  the current market price of natural gas are eligible for cost
   26  recovery, but only if which are otherwise deemed reasonable and
   27  prudent by the commission finds that the contract meets the
   28  overall goals of subsection (1) by promoting the development or
   29  use of renewable energy resources in this state and providing
   30  fuel diversification.
   31         (10) A public utility may recover, through the appropriate
   32  cost-recovery mechanism administered by the commission,
   33  prudently incurred costs for renewable natural gas and hydrogen
   34  fuel infrastructure projects. If the commission determines that
   35  such costs were prudently incurred, those costs are not subject
   36  to disallowance or further prudence review except for fraud,
   37  perjury, or intentional withholding of key information by the
   38  public utility. For purposes of this subsection for utility cost
   39  recovery only, renewable natural gas may include a mixture of
   40  natural gas and renewable natural gas. Eligible renewable
   41  natural gas and hydrogen fuel infrastructure projects include,
   42  but are not limited to, capital investment in projects necessary
   43  to prepare or produce renewable natural gas and hydrogen fuel
   44  for pipeline distribution and usage; capital investment in
   45  facilities, including pipelines, necessary to inject and deliver
   46  renewable natural gas and hydrogen fuel throughout this state;
   47  renewable natural gas and hydrogen fuel storage facilities;
   48  operation and maintenance expenses associated with any such
   49  renewable natural gas and hydrogen fuel infrastructure projects;
   50  and an appropriate return on investment consistent with that
   51  allowed for other utility plants used to provide service to
   52  customers.
   53         Section 2. This act shall take effect July 1, 2023.