Bill Text: FL S1186 | 2010 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Renewable Energy [EPSC]
Spectrum: Bipartisan Bill
Status: (Failed) 2010-04-30 - Died in Committee on Policy & Steering Committee on Ways and Means [S1186 Detail]
Download: Florida-2010-S1186-Introduced.html
Bill Title: Renewable Energy [EPSC]
Spectrum: Bipartisan Bill
Status: (Failed) 2010-04-30 - Died in Committee on Policy & Steering Committee on Ways and Means [S1186 Detail]
Download: Florida-2010-S1186-Introduced.html
Florida Senate - 2010 SB 1186 By Senator Bennett 21-00902-10 20101186__ 1 A bill to be entitled 2 An act relating to renewable energy; amending s. 3 366.92, F.S.; revising legislative intent regarding 4 the state’s renewable energy policy; deleting 5 provisions requiring that the Public Service 6 Commission adopt rules for a renewable portfolio 7 standard; requiring that the commission provide for 8 full cost recovery for certain renewable energy 9 projects; creating s. 366.921, F.S.; providing 10 legislative findings; requiring that a petition filed 11 by a provider for approval of a facility producing a 12 Florida renewable energy resource comply with certain 13 criteria; specifying the criteria to be considered by 14 the commission in approving a petition for such 15 facility; requiring that the commission’s final order 16 approving a facility include authorization for annual 17 cost recovery; amending s. 403.503, F.S.; redefining 18 the term “electrical power plant” for purposes of the 19 Florida Electrical Power Plant Siting Act to exclude 20 solar electrical generating facilities; providing an 21 effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Section 366.92, Florida Statutes, is amended to 26 read: 27 366.92 Florida renewable energy policy.— 28 (1) In order to stimulate the state’s economy, encourage 29 businesses to invest in clean technologies, and foster research, 30 development, manufacturing, construction, and jobs in new and 31 renewable energy, it is the intent of the Legislature to promote 32 the development of renewable energy; protect the economic 33 viability of Florida’s existing renewable energy facilities; 34 diversify the types of fuel used to generate electricity in 35 Florida; lessen Florida’s dependence on natural gas and fuel oil 36 for the production of electricity; minimize the volatility of 37 fuel costs; encourage investment within the state; improve 38 environmental conditions by reducing water consumption and 39 carbon and other greenhouse gas emissions; and, at the same 40 time, minimize the costs of power supply to electric utilities 41 and their customers. 42 (2) As used in this section, the term: 43 (a) “Florida renewable energy resources” means renewable 44 energy, as defined in s. 377.803, that is produced in Florida. 45 (b) “Provider” means a “utility” as defined in s. 46 366.8255(1)(a). 47 (c) “Renewable energy” means renewable energy as defined in 48 s. 366.91(2)(d). 49(d) “Renewable energy credit” or “REC” means a product that50represents the unbundled, separable, renewable attribute of51renewable energy produced in Florida and is equivalent to 152megawatt-hour of electricity generated by a source of renewable53energy located in Florida.54(e) “Renewable portfolio standard” or “RPS” means the55minimum percentage of total annual retail electricity sales by a56provider to consumers in Florida that shall be supplied by57renewable energy produced in Florida.58(3) The commission shall adopt rules for a renewable59portfolio standard requiring each provider to supply renewable60energy to its customers directly, by procuring, or through61renewable energy credits. In developing the RPS rule, the62commission shall consult the Department of Environmental63Protection and the Florida Energy and Climate Commission. The64rule shall not be implemented until ratified by the Legislature.65The commission shall present a draft rule for legislative66consideration by February 1, 2009.67(a) In developing the rule, the commission shall evaluate68the current and forecasted levelized cost in cents per kilowatt69hour through 2020 and current and forecasted installed capacity70in kilowatts for each renewable energy generation method through712020.72(b) The commission’s rule:731. Shall include methods of managing the cost of compliance74with the renewable portfolio standard, whether through direct75supply or procurement of renewable power or through the purchase76of renewable energy credits. The commission shall have77rulemaking authority for providing annual cost recovery and78incentive-based adjustments to authorized rates of return on79common equity to providers to incentivize renewable energy.80Notwithstanding s.366.91(3) and (4), upon the ratification of81the rules developed pursuant to this subsection, the commission82may approve projects and power sales agreements with renewable83power producers and the sale of renewable energy credits needed84to comply with the renewable portfolio standard. In the event of85any conflict, this subparagraph shall supersede s.366.91(3) and86(4). However, nothing in this section shall alter the obligation87of each public utility to continuously offer a purchase contract88to producers of renewable energy.892. Shall provide for appropriate compliance measures and90the conditions under which noncompliance shall be excused due to91a determination by the commission that the supply of renewable92energy or renewable energy credits was not adequate to satisfy93the demand for such energy or that the cost of securing94renewable energy or renewable energy credits was cost95prohibitive.963. May provide added weight to energy provided by wind and97solar photovoltaic over other forms of renewable energy, whether98directly supplied or procured or indirectly obtained through the99purchase of renewable energy credits.1004. Shall determine an appropriate period of time for which101renewable energy credits may be used for purposes of compliance102with the renewable portfolio standard.1035. Shall provide for monitoring of compliance with and104enforcement of the requirements of this section.1056. Shall ensure that energy credited toward compliance with106the requirements of this section is not credited toward any107other purpose.1087. Shall include procedures to track and account for109renewable energy credits, including ownership of renewable110energy credits that are derived from a customer-owned renewable111energy facility as a result of any action by a customer of an112electric power supplier that is independent of a program113sponsored by the electric power supplier.1148. Shall provide for the conditions and options for the115repeal or alteration of the rule in the event that new116provisions of federal law supplant or conflict with the rule.117(c) Beginning on April 1 of the year following final118adoption of the commission’s renewable portfolio standard rule,119each provider shall submit a report to the commission describing120the steps that have been taken in the previous year and the121steps that will be taken in the future to add renewable energy122to the provider’s energy supply portfolio. The report shall123state whether the provider was in compliance with the renewable124portfolio standard during the previous year and how it will125comply with the renewable portfolio standard in the upcoming126year.127 (3)(a)(4)In order to promote and facilitate the 128 development of clean industry in this statedemonstrate the129feasibility and viability of clean energy systems, the 130 commission shall provide for full cost recovery under the 131 environmental cost-recovery clause of all reasonable and prudent 132 costs incurred by a provider for: 133 1. Renewable energy projects that result in a net decrease 134 ofare zerogreenhouse gas emittedemittingat the point of 135 generation,up to a total of 110 megawatts statewide,and for 136 which the provider has secured necessary land, zoning permits, 137 and transmission rights within the state, with up to a total of 138 300 megawatts in 2010 and up to an additional 200 megawatts 139 annually in 2011 and 2012 as part of new renewable energy 140 projects in addition to megawatts attributable to renewable 141 energy projects approved by the commission for cost recovery 142 before January 1, 2010. 143 2. Up to 15 megawatts annually for 2010 and up to 10 144 megawatts annually for 2011 and 2012, which must be rooftop or 145 pole-mounted solar energy applications. 146 (b) Such costs shall be deemed reasonable and prudent for 147 purposes of cost recovery so long as the provider has used 148 reasonable and customary industry practices in the design, 149 procurement, and construction of the project in a cost-effective 150 manner appropriate to the location of the facility. The provider 151 shall report to the commission as part of the cost-recovery 152 proceedings the construction costs, in-service costs, operating 153 and maintenance costs, hourly energy production of the renewable 154 energy project, environmental benefits, and estimated fuel 155 savings of the facilityand any other information deemed156relevant by the commission.Any provider constructing a clean157energy facility pursuant to this section shall file for cost158recovery no later than July 1, 2009.159 (4)(5)Each municipal electric utility and rural electric 160 cooperative shall develop standards for the promotion, 161 encouragement, and expansion of the use of renewable energy 162 resources and energy conservation and efficiency measures. On or 163 before April 1, 2009, and annually thereafter, each municipal 164 electric utility and electric cooperative shall submit to the 165 commission a report that identifies such standards. 166 (5)(6)Nothing inThis section does notshall be construed167toimpede or impair terms and conditions of existing contracts. 168 (6)(7)The commission may adopt rules to administerand169implement the provisions ofthis section. 170 Section 2. Section 366.921, Florida Statutes, is created to 171 read: 172 366.921 Renewable energy; determination of need.— 173 (1) The Legislature finds that the goals stated in s. 174 366.92(1) shall be accomplished by fostering the expansion and 175 development of Florida renewable energy resources. Providers of 176 Florida renewable energy resources must acquire commission 177 approval before the construction, conversion, licensing, and 178 operation of a facility producing such resources or the purchase 179 of capacity or energy from a facility producing such resources. 180 Any petition filed by a provider for approval of a facility 181 producing a Florida renewable energy resource must meet the 182 criteria specified in this section. 183 (2) Notwithstanding any provision in s. 403.519, the 184 Legislature finds that there is a need for Florida renewable 185 energy resources consistent with the goals stated in s. 186 366.92(1). 187 (3) Upon the filing by a provider of a petition for 188 approval of a facility producing a Florida renewable energy 189 resource, the commission shall schedule a formal administrative 190 hearing within 10 days after the filing of the petition and vote 191 on the petition within 120 days after such filing. 192 (4) Before approving the petition, the commission shall 193 consider whether the: 194 (a) Proposed facility employs reasonable and customary 195 industry practices in the design, engineering, and construction 196 of the facility producing the Florida renewable energy resource 197 in a cost-effective manner that is appropriate to the proposed 198 technology and location of the facility. 199 (b) Entity, including a provider, which would engineer, 200 design, and construct the proposed facility has the requisite 201 technical and financial qualifications, expertise, and 202 capability. 203 (c) Entity, including a provider, which would operate the 204 proposed facility has the requisite technical qualifications, 205 expertise, and capability. 206 (d) Proposed production of the Florida renewable energy 207 resource will have a positive impact on the environment, 208 including the reduction of greenhouse gas emissions. 209 (e) Proposed production of the Florida renewable energy 210 resource will result in local economic benefits, including job 211 creation, for the state’s economy. 212 (f) Proposed Florida renewable energy resource will enhance 213 the fuel diversity of the provider. 214 (g) Proposed facility producing the Florida renewable 215 energy resource will mitigate or avoid the use of water 216 resources in the production of renewable power. 217 (5) The commission’s final order approving a facility 218 producing a Florida renewable energy resource shall include 219 express authorization for annual cost recovery pursuant to ss. 220 366.92 and 366.8255. 221 Section 3. Subsection (14) of section 403.503, Florida 222 Statutes, is amended to read: 223 403.503 Definitions relating to Florida Electrical Power 224 Plant Siting Act.—As used in this act: 225 (14) “Electrical power plant” means, for the purpose of 226 certification, any steamor solarelectrical generating facility 227 using any process or fuel, including nuclear materials, except 228 that this term does not include any steamor solarelectrical 229 generating facility of less than 75 megawatts in capacity unless 230 the applicant for such a facility elects to apply for 231 certification under this act. This term also includes the site; 232 all associated facilities that will be owned by the applicant 233 that are physically connected to the site; all associated 234 facilities that are indirectly connected to the site by other 235 proposed associated facilities that will be owned by the 236 applicant; and associated transmission lines that will be owned 237 by the applicant which connect the electrical power plant to an 238 existing transmission network or rights-of-way to which the 239 applicant intends to connect. At the applicant’s option, this 240 term may include any offsite associated facilities that will not 241 be owned by the applicant; offsite associated facilities that 242 are owned by the applicant but that are not directly connected 243 to the site; any proposed terminal or intermediate substations 244 or substation expansions connected to the associated 245 transmission line; or new transmission lines, upgrades, or 246 improvements of an existing transmission line on any portion of 247 the applicant’s electrical transmission system necessary to 248 support the generation injected into the system from the 249 proposed electrical power plant. 250 Section 4. This act shall take effect July 1, 2010.