Senate Bill sb1492c2

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    Florida Senate - 2004                    CS for CS for SB 1492

    By the Committees on Natural Resources; and Communication and
    Public Utilities




    312-2184-04

  1                      A bill to be entitled

  2         An act relating to renewable energy; creating

  3         s. 366.91, F.S.; providing legislative

  4         findings; requiring public utilities, municipal

  5         utilities, and rural electric cooperatives to

  6         offer a purchase contract to producers of

  7         renewable energy; providing requirements for

  8         such contracts; providing for cost recovery;

  9         amending s. 403.7061, F.S.; deleting a permit

10         requirement for a waste-to-energy facility;

11         encouraging specified applicants for a landfill

12         permit to consider construction of a

13         waste-to-energy facility; providing an

14         effective date.

15  

16  Be It Enacted by the Legislature of the State of Florida:

17  

18         Section 1.  Section 366.91, Florida Statutes, is

19  created to read:

20         366.91  Renewable electricity.--

21         (1)  The Legislature finds that it is in the public

22  interest to promote the development of renewable electric

23  resources in this state. Renewable electric resources have the

24  potential to help diversify fuel types to meet Florida's

25  growing dependency on natural gas for electric production,

26  minimize the volatility of fuel costs, encourage investment

27  within this state, improve environmental conditions, and make

28  Florida a leader in new and innovative technologies.

29         (2)  As used in this section, the term:

30         (a)  "Biomass" means a power source that is comprised

31  of, but not limited to, combustible residues or gases from

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    Florida Senate - 2004                    CS for CS for SB 1492
    312-2184-04




 1  forest-products manufacturing, agricultural and orchard crops,

 2  waste products from livestock and poultry operations and food

 3  processing, urban wood waste, municipal solid waste, municipal

 4  liquid waste treatment operations, and landfill gas.

 5         (b)  "Renewable energy" means electrical energy

 6  produced from any method or process that uses one or more of

 7  the following fuels or energy sources: hydrogen produced from

 8  sources other than fossil fuels, biomass, solar energy,

 9  geothermal energy, wind energy, ocean energy, hydroelectric

10  power, municipal solid waste, municipal liquid waste treatment

11  operations, or landfill gas.

12         (3)  On or before January 1, 2005, each public utility

13  must continuously offer a purchase contract to producers of

14  renewable energy containing payment provisions for energy and

15  capacity, if capacity payments are appropriate, which are

16  based upon the utility's full avoided cost, as defined in s.

17  366.051. Each contract must provide a contract term of at

18  least 10 years. Prudent and reasonable costs associated with a

19  renewable energy contract shall be recovered from the

20  ratepayers of the contracting utility, without differentiation

21  among customer classes, through the appropriate cost-recovery

22  clause mechanism administered by the commission.

23         (4)  On or before January 1, 2005, each municipal

24  electric utility and rural electric cooperative whose annual

25  sales as of July 1, 1993, to retail customers were greater

26  than 2,000 gigawatt hours must continuously offer a purchase

27  contract to producers of renewable energy containing payment

28  provisions for energy and capacity, if capacity payments are

29  appropriate, which are based upon the utility's or

30  cooperative's full avoided cost, as determined by the

31  

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    Florida Senate - 2004                    CS for CS for SB 1492
    312-2184-04




 1  governing body of the municipal utility or cooperative. Each

 2  contract must provide a contract term of at least 10 years.

 3         (5)  A contracting producer of renewable energy must

 4  pay the actual costs of its interconnection with the

 5  transmission grid or distribution system.

 6         Section 2.  Section 403.7061, Florida Statutes, is

 7  amended to read:

 8         403.7061  Requirements for review of new

 9  waste-to-energy facility capacity by the Department of

10  Environmental Protection.--

11         (1)  The Legislature recognizes the need to use an

12  integrated approach to municipal solid waste management.

13  Accordingly, the solid waste management legislation adopted in

14  1988 was guided by policies intended to foster integrated

15  solid waste management by using waste reduction, recycling,

16  waste-to-energy facilities, and landfills. Progress is being

17  made in the state using this integrated approach to municipal

18  solid waste management, and this approach should be continued.

19  Waste-to-energy facilities will continue to be an integral

20  part of the state's solid waste management practices. However,

21  the state is committed to achieving its recycling and waste

22  reduction goals and must ensure that waste-to-energy

23  facilities are fully integrated with the state's waste

24  management goals. Therefore, the Legislature finds that the

25  department should evaluate applications for waste-to-energy

26  facilities in accordance with the new criteria in subsection

27  (3) to confirm that the facilities are part of an integrated

28  waste management plan.

29         (2)  Notwithstanding any other provisions of state law,

30  the department shall not issue a construction permit or

31  certification to build a waste-to-energy facility or expand an

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    Florida Senate - 2004                    CS for CS for SB 1492
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 1  existing waste-to-energy facility unless the facility meets

 2  the requirements set forth in subsection (3). Any construction

 3  permit issued by the department between January 1, 1993, and

 4  May 12, 1993, which does not address these new requirements

 5  shall be invalid. These new requirements do not apply to the

 6  issuance of permits or permit modifications to retrofit

 7  existing facilities with new or improved pollution control

 8  equipment to comply with state or federal law. The department

 9  shall initiate rulemaking to incorporate the criteria in

10  subsection (3) into its permit review process.

11         (3)  An applicant must provide reasonable assurance

12  that the construction of a new waste-to-energy facility or the

13  expansion of an existing waste-to-energy facility will comply

14  with the following subsections:

15         (a)  The facility is a necessary part of the local

16  government's integrated solid waste management program in the

17  jurisdiction where the facility is located and cannot be

18  avoided through feasible and practical efforts to use

19  recycling or waste reduction.

20         (b)  The use of capacity at existing waste-to-energy

21  facilities within reasonable transportation distance of the

22  proposed facility must have been evaluated and found not to be

23  economically feasible when compared to the use of the proposed

24  facility for the expected life of the proposed facility. This

25  paragraph does not apply to:

26         1.  Applications to build or expand waste-to-energy

27  facilities received by the department before March 1, 1993, or

28  amendments to such applications that do not increase

29  combustion capacity beyond that requested as of March 1, 1993;

30  or

31  

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    Florida Senate - 2004                    CS for CS for SB 1492
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 1         2.  Any modification to waste-to-energy facility

 2  construction or operating permits or certifications or

 3  conditions thereto, including certifications under ss.

 4  403.501-403.518, that do not increase combustion capacity

 5  above that amount applied for before March 1, 1993.

 6         (c)  The applicant must demonstrate that the county in

 7  which the facility is located has implemented a solid waste

 8  management and recycling program that is designed to achieve

 9  the waste reduction goal set forth in s. 403.706(4). The

10  county in which the facility is located will achieve the

11  30-percent waste reduction goal set forth in s. 403.706(4) by

12  the time the facility begins operation. For the purposes of

13  this section, the provisions of s. 403.706(4)(c) for counties

14  with populations of 75,000 or less do not apply.

15         (d)  The local government in which the facility is

16  located has implemented a mulching, composting, or other waste

17  reduction program for yard trash.

18         (e)  The local governments served by the facility will

19  have implemented or participated in a separation program

20  designed to remove small-quantity generator and household

21  hazardous waste, mercury containing devices, and

22  mercuric-oxide batteries from the waste stream prior to

23  incineration, by the time the facility begins operation.

24         (f)  The local government in which the facility is

25  located has implemented a program to procure products or

26  materials with recycled content, pursuant to s. 403.7065.

27         (g)  A program will exist in the local government in

28  which the facility is located for collecting and recycling

29  recovered material from the institutional, commercial, and

30  industrial sectors by the time the facility begins operation.

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    Florida Senate - 2004                    CS for CS for SB 1492
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 1         (h)  The facility will be in compliance with applicable

 2  local ordinances and with the approved state and local

 3  comprehensive plans required by chapter 163.

 4         (i)  The facility is in substantial compliance with its

 5  permit, conditions of certification, and any agreements or

 6  orders resulting from environmental enforcement actions by

 7  state agencies.

 8         (4)  For the purposes of this section, the term

 9  "waste-to-energy facility" means a facility that uses an

10  enclosed device using controlled combustion to thermally break

11  down solid, liquid, or gaseous combustible solid waste to an

12  ash residue that contains little or no combustible material

13  and that produces electricity, steam, or other energy as a

14  result. The term does not include facilities that primarily

15  burn fuels other than solid waste even if such facilities also

16  burn some solid waste as a fuel supplement. The term also does

17  not include facilities that burn vegetative, agricultural, or

18  silvicultural wastes, bagasse, clean dry wood, methane or

19  other landfill gas, wood fuel derived from construction or

20  demolition debris, or waste tires, alone or in combination

21  with fossil fuels.

22         Section 3.  Requirements relating to solid waste

23  disposal facility permitting.--Local government applicants for

24  a permit to construct or expand a Class I landfill are

25  encouraged to consider construction of a waste-to-energy

26  facility as an alternative to additional landfill space.

27         Section 4.  This act shall take effect October 1, 2004.

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    Florida Senate - 2004                    CS for CS for SB 1492
    312-2184-04




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                     CS for Senate Bill 1492

 3                                 

 4  This committee substitute deletes the provision that created
    an alternative electric energy surcharge.
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