Senate Bill sb1492e2
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CS for CS for SB 1492 Second Engrossed (ntc)
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.
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16 Be It Enacted by the Legislature of the State of Florida:
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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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CS for CS for SB 1492 Second Engrossed (ntc)
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 which are based upon the utility's full avoided cost,
16 as defined in s. 366.051, provided however, that capacity
17 payments shall not be required if, due to the operational
18 characteristics of the renewable energy generator or the
19 anticipated peak and off-peak availability and capacity factor
20 of the utility's avoided unit, it is unlikely to provide any
21 capacity value to the utility or the electric grid during the
22 contract term. Each contract must provide a contract term of
23 at least 10 years. Prudent and reasonable costs associated
24 with a renewable energy contract shall be recovered from the
25 ratepayers of the contracting utility, without differentiation
26 among customer classes, through the appropriate cost-recovery
27 clause mechanism administered by the commission.
28 (4) On or before January 1, 2005, each municipal
29 electric utility and rural electric cooperative whose annual
30 sales as of July 1, 1993, to retail customers were greater
31 than 2,000 gigawatt hours must continuously offer a purchase
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CS for CS for SB 1492 Second Engrossed (ntc)
1 contract to producers of renewable energy containing payment
2 provisions for energy and capacity which are based upon the
3 utility's or cooperative's full avoided cost, as determined by
4 the governing body of the municipal utility or cooperative,
5 provided however that capacity payments shall not be required
6 if, due to the operational characteristics of the renewable
7 energy generator or the anticipated peak and off-peak
8 availability and capacity factor of the utility's avoided
9 unit, it is unlikely to provide any capacity value to the
10 utility or the electric grid during the contract term. Each
11 contract must provide a contract term of at least 10 years.
12 (5) A contracting producer of renewable energy must
13 pay the actual costs of its interconnection with the
14 transmission grid or distribution system.
15 Section 2. Section 403.7061, Florida Statutes, is
16 amended to read:
17 403.7061 Requirements for review of new
18 waste-to-energy facility capacity by the Department of
19 Environmental Protection.--
20 (1) The Legislature recognizes the need to use an
21 integrated approach to municipal solid waste management.
22 Accordingly, the solid waste management legislation adopted in
23 1988 was guided by policies intended to foster integrated
24 solid waste management by using waste reduction, recycling,
25 waste-to-energy facilities, and landfills. Progress is being
26 made in the state using this integrated approach to municipal
27 solid waste management, and this approach should be continued.
28 Waste-to-energy facilities will continue to be an integral
29 part of the state's solid waste management practices. However,
30 the state is committed to achieving its recycling and waste
31 reduction goals and must ensure that waste-to-energy
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1 facilities are fully integrated with the state's waste
2 management goals. Therefore, the Legislature finds that the
3 department should evaluate applications for waste-to-energy
4 facilities in accordance with the new criteria in subsection
5 (3) to confirm that the facilities are part of an integrated
6 waste management plan.
7 (2) Notwithstanding any other provisions of state law,
8 the department shall not issue a construction permit or
9 certification to build a waste-to-energy facility or expand an
10 existing waste-to-energy facility unless the facility meets
11 the requirements set forth in subsection (3). Any construction
12 permit issued by the department between January 1, 1993, and
13 May 12, 1993, which does not address these new requirements
14 shall be invalid. These new requirements do not apply to the
15 issuance of permits or permit modifications to retrofit
16 existing facilities with new or improved pollution control
17 equipment to comply with state or federal law. The department
18 shall initiate rulemaking to incorporate the criteria in
19 subsection (3) into its permit review process.
20 (3) An applicant must provide reasonable assurance
21 that the construction of a new waste-to-energy facility or the
22 expansion of an existing waste-to-energy facility will comply
23 with the following subsections:
24 (a) The facility is a necessary part of the local
25 government's integrated solid waste management program in the
26 jurisdiction where the facility is located and cannot be
27 avoided through feasible and practical efforts to use
28 recycling or waste reduction.
29 (b) The use of capacity at existing waste-to-energy
30 facilities within reasonable transportation distance of the
31 proposed facility must have been evaluated and found not to be
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1 economically feasible when compared to the use of the proposed
2 facility for the expected life of the proposed facility. This
3 paragraph does not apply to:
4 1. Applications to build or expand waste-to-energy
5 facilities received by the department before March 1, 1993, or
6 amendments to such applications that do not increase
7 combustion capacity beyond that requested as of March 1, 1993;
8 or
9 2. Any modification to waste-to-energy facility
10 construction or operating permits or certifications or
11 conditions thereto, including certifications under ss.
12 403.501-403.518, that do not increase combustion capacity
13 above that amount applied for before March 1, 1993.
14 (c) The applicant must demonstrate that the county in
15 which the facility is located has implemented a solid waste
16 management and recycling program that is designed to achieve
17 the waste reduction goal set forth in s. 403.706(4). The
18 county in which the facility is located will achieve the
19 30-percent waste reduction goal set forth in s. 403.706(4) by
20 the time the facility begins operation. For the purposes of
21 this section, the provisions of s. 403.706(4)(c) for counties
22 with populations of 75,000 or less do not apply.
23 (d) The local government in which the facility is
24 located has implemented a mulching, composting, or other waste
25 reduction program for yard trash.
26 (e) The local governments served by the facility will
27 have implemented or participated in a separation program
28 designed to remove small-quantity generator and household
29 hazardous waste, mercury containing devices, and
30 mercuric-oxide batteries from the waste stream prior to
31 incineration, by the time the facility begins operation.
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CS for CS for SB 1492 Second Engrossed (ntc)
1 (f) The local government in which the facility is
2 located has implemented a program to procure products or
3 materials with recycled content, pursuant to s. 403.7065.
4 (g) A program will exist in the local government in
5 which the facility is located for collecting and recycling
6 recovered material from the institutional, commercial, and
7 industrial sectors by the time the facility begins operation.
8 (h) The facility will be in compliance with applicable
9 local ordinances and with the approved state and local
10 comprehensive plans required by chapter 163.
11 (i) The facility is in substantial compliance with its
12 permit, conditions of certification, and any agreements or
13 orders resulting from environmental enforcement actions by
14 state agencies.
15 (4) For the purposes of this section, the term
16 "waste-to-energy facility" means a facility that uses an
17 enclosed device using controlled combustion to thermally break
18 down solid, liquid, or gaseous combustible solid waste to an
19 ash residue that contains little or no combustible material
20 and that produces electricity, steam, or other energy as a
21 result. The term does not include facilities that primarily
22 burn fuels other than solid waste even if such facilities also
23 burn some solid waste as a fuel supplement. The term also does
24 not include facilities that burn vegetative, agricultural, or
25 silvicultural wastes, bagasse, clean dry wood, methane or
26 other landfill gas, wood fuel derived from construction or
27 demolition debris, or waste tires, alone or in combination
28 with fossil fuels.
29 Section 3. Requirements relating to solid waste
30 disposal facility permitting.--Local government applicants for
31 a permit to construct or expand a Class I landfill are
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CS for CS for SB 1492 Second Engrossed (ntc)
1 encouraged to consider construction of a waste-to-energy
2 facility as an alternative to additional landfill space.
3 Section 4. This act shall take effect October 1, 2004.
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