Bill Text: FL S0640 | 2012 | Regular Session | Introduced
Bill Title: Local Government Energy Zones
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-09 - Died in Communications, Energy, and Public Utilities [S0640 Detail]
Download: Florida-2012-S0640-Introduced.html
Florida Senate - 2012 SB 640 By Senator Bennett 21-00546-12 2012640__ 1 A bill to be entitled 2 An act relating to local government energy zones; 3 defining terms; authorizing a local government to 4 create an energy zone by ordinance; allowing a 5 producer of renewable energy to produce and sell 6 energy within the boundaries of the energy zone; 7 requiring that the producer or new customer of 8 renewable energy be offered an interruptible rate from 9 the utility; authorizing retail sales by any producer 10 of renewable energy within an energy zone; requiring 11 the Public Service Commission to adopt rules to govern 12 sales by producers of renewable energy within the 13 local government energy zone; requiring that the 14 commission submit reports to the Legislature; amending 15 s. 366.02, F.S.; redefining the term “public utility” 16 to exempt producers and sellers of renewable energy 17 from economic regulation by the Public Service 18 Commission; reenacting ss. 290.007(8) and 19 768.1382(1)(e), F.S., relating to state incentives 20 available in enterprise zones and streetlights, 21 security lights, and other similar illumination 22 devices, respectively, to incorporate the amendment 23 made to s. 366.02, F.S., in references thereto; 24 providing an effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Local government energy zones.— 29 (1) As used in this section, the term: 30 (a) “Full avoided cost” has the same meaning as provided in 31 s. 366.051, Florida Statutes. 32 (b) “Interruptible rate” means a rate approved by the 33 Public Service Commission for service to renewable energy 34 providers or their new customers which allows the utility to 35 temporarily discontinue service at any time with or without 36 notice when the utility is unable to provide service to the 37 renewable energy producer or its new customer because the 38 utility lacks capacity to serve the renewable energy producer or 39 its new customer. 40 (c) “Local government” means a county or a municipality. 41 (d) “New customer” means a residence or business at a 42 location where any previous sales of electricity were related 43 solely to development or construction of the property. 44 (e) “Renewable energy” has the same meaning as provided in 45 s. 366.91, Florida Statutes. 46 (2) A local government may adopt an ordinance establishing 47 an energy zone within its political or geographic boundaries. 48 Within this energy zone, a producer of renewable energy may sell 49 renewable energy to any new customer directly at retail for any 50 price agreed upon. 51 (a) All renewable energy sold under this section must be 52 produced and used within the boundaries of the energy zone or 53 sold through net metering onto the utility grid at the 54 purchasing utility’s full avoided cost. 55 (b) All producers of renewable energy which sell pursuant 56 to this section must pay the utility that serves the energy zone 57 1 1/2 cents for each kilowatt hour of renewable energy produced 58 and sold. 59 (c) However, if and to the extent that the utility’s 60 services to the producer of renewable energy and its customers 61 are on an interruptible-rate structure approved by the 62 commission, the payment of 1 1/2 cents per kilowatt hour is 63 waived. 64 (d) The utility shall offer to the producer and its 65 customers an interruptible rate for any size service in the 66 energy zone. 67 (e) This subsection does not prohibit a new customer from 68 obtaining service directly from the electric utility. 69 (3) The Florida Public Service Commission shall adopt rules 70 to administer this section. All sales of renewable energy within 71 an energy zone are subject to these rules. The rules shall 72 provide, at a minimum: 73 (a) Requirements related to interconnection with the 74 utility’s transmission and distribution facilities which may be 75 necessary for metering or service. 76 (b) Criteria for setting rates for any service provided to 77 the renewable energy producer or the new customer by the utility 78 if such service is required. The rates must ensure that the 79 utility’s general ratepayers do not subsidize the renewable 80 energy producer or the new customer in any way, including the 81 creation of any redundant utility generating capacity necessary 82 to serve the renewable energy producer or the new customer. 83 (c) Requirements for notice to the commission of the size 84 and location of each renewable energy generation facility 85 planned under this section, the identity and historical and 86 projected load characteristics for the facility, and any other 87 information deemed necessary by the commission to satisfy its 88 obligations under s. 366.04(5), Florida Statutes. 89 (4) Beginning October 1, 2013, and at least once every 6 90 months thereafter, the commission shall submit a report to the 91 Legislature concerning activity under this section. The report 92 must address the effect of such activity on the electric power 93 grid of the state, the individual utility systems, and each 94 utility’s general ratepayers. The report must also include 95 recommendations concerning implementation of this program. 96 Section 2. Subsection (1) of section 366.02, Florida 97 Statutes, is amended to read: 98 366.02 Definitions.—As used in this chapter: 99 (1) “Public utility” means every person, corporation, 100 partnership, association, or other legal entity and their 101 lessees, trustees, or receivers supplying electricity or gas, 102 whether(natural, manufactured, or similar gaseous substance,)103 to or for the public within this state.; butThe term“public104utility”does not include:either105 (a) A cooperative now or hereafter organized and existing 106 under the Rural Electric Cooperative Law of the state.;107 (b) A municipality or any agency thereof.;108 (c) Aanydependent or independent special natural gas 109 district.;110 (d) Aanynatural gas transmission pipeline company making 111 only sales or transportation delivery of natural gas at 112 wholesale and to direct industrial consumers.;113 (e) Ananyentity selling or arranging for sales of natural 114 gas which neither owns nor operates natural gas transmission or 115 distribution facilities within the state.;or116 (f) A person supplying liquefied petroleum gas, in either 117 liquid or gaseous form, irrespective of the method of 118 distribution or delivery, or owning or operating facilities 119 beyond the outlet of a meter through which natural gas is 120 supplied for compression and delivery into motor vehicle fuel 121 tanks or other transportation containers, unless thesuchperson 122 also supplies electricity or manufactured or natural gas. 123 (g) A producer and seller of renewable energy, as defined 124 in s. 366.91. 125 Section 3. For the purpose of incorporating the amendment 126 made by this act to section 366.02, Florida Statutes, in a 127 reference thereto, subsection (8) of section 290.007, Florida 128 Statutes, is reenacted to read: 129 290.007 State incentives available in enterprise zones.—The 130 following incentives are provided by the state to encourage the 131 revitalization of enterprise zones: 132 (8) Notwithstanding any law to the contrary, the Public 133 Service Commission may allow public utilities and 134 telecommunications companies to grant discounts of up to 50 135 percent on tariffed rates for services to small businesses 136 located in an enterprise zone designated pursuant to s. 137 290.0065. Such discounts may be granted for a period not to 138 exceed 5 years. For purposes of this subsection, the term 139 “public utility” has the same meaning as in s. 366.02(1) and the 140 term “telecommunications company” has the same meaning as in s. 141 364.02(13). 142 Section 4. For the purpose of incorporating the amendment 143 made by this act to section 366.02, Florida Statutes, in a 144 reference thereto, paragraph (e) of subsection (1) of section 145 768.1382, Florida Statutes, is reenacted to read: 146 768.1382 Streetlights, security lights, and other similar 147 illumination; limitation on liability.— 148 (1) As used in this section, the term: 149 (e) “Streetlight provider” means the state or any of the 150 state’s officers, agencies, or instrumentalities, any political 151 subdivision as defined in s. 1.01, any public utility as defined 152 in s. 366.02(1), or any electric utility as defined in s. 153 366.02(2). 154 Section 5. This act shall take effect July 1, 2012.