Senate Bill sb0494

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    Florida Senate - 2005                                   SB 494

    By Senator Bennett





    21-464-05

  1                      A bill to be entitled

  2         An act relating to renewable energy; creating

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

  4         findings; providing definitions; requiring

  5         public utilities, municipal utilities, and

  6         rural electric cooperatives to offer a purchase

  7         contract to producers of renewable energy;

  8         providing requirements for such contracts;

  9         requiring that a producer pay the costs for

10         interconnection; amending s. 366.11, F.S.;

11         specifying that requirements for the purchase

12         of renewable energy apply to municipal

13         utilities; amending s. 403.7061, F.S.; revising

14         a permit requirement for a waste-to-energy

15         facility; encouraging specified applicants for

16         a landfill permit to consider construction of a

17         waste-to-energy facility; providing an

18         effective date.

19  

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

21  

22         Section 1.  Section 366.91, Florida Statutes, is

23  created to read:

24         366.91  Renewable energy.--

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

26  interest to promote the development of renewable energy

27  resources in this state. Renewable energy resources have the

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

29  growing dependency on natural gas for electric production,

30  minimize the volatility of fuel costs, encourage investment

31  

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    Florida Senate - 2005                                   SB 494
    21-464-05




 1  within the state, improve environmental conditions, and make

 2  Florida a leader in new and innovative technologies.

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

 4         (a)  "Biomass" means a power source composed of

 5  combustible residues or gases that are derived from organic

 6  matter drawn from sources other than fossil fuels, which

 7  sources are available on a renewable basis.  The term

 8  includes, but is not limited to, a power source from

 9  forest-products manufacturing; agricultural and orchard crops;

10  waste products from livestock operations, poultry operations,

11  or food processing; urban wood waste; municipal solid waste;

12  municipal liquid waste treatment operations; or landfill gas.

13         (b)  "Renewable energy" means electrical energy

14  produced from a method that uses one or more of the following

15  fuels or energy sources: hydrogen produced from sources other

16  than fossil fuels, biomass, solar energy, geothermal energy,

17  wind energy, ocean energy, hydroelectric power, municipal

18  solid waste, material from municipal liquid waste treatment

19  operations, or landfill gas.

20         (3)  On or before January 1, 2006, each public utility

21  must continuously offer a purchase contract to producers of

22  renewable energy containing payment provisions for energy and

23  capacity, if capacity payments are appropriate, which are

24  based upon the utility's full avoided costs, as defined in s.

25  366.051. Each contract must provide a contract term of at

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

27  renewable energy contract shall be recovered from the

28  ratepayers of the contracting utility, without differentiation

29  among customer classes, through the appropriate cost-recovery

30  clause mechanism administered by the commission.

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    Florida Senate - 2005                                   SB 494
    21-464-05




 1         (4)  On or before January 1, 2006, each municipal

 2  electric utility and rural electric cooperative whose annual

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

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

 5  contract to producers of renewable energy containing payment

 6  provisions for energy and capacity, if capacity payments are

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

 8  cooperative's full avoided costs, as determined by the

 9  governing body of the municipal utility or cooperative. Each

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

11         (5)  A contracting producer of renewable energy must

12  pay the actual costs of its interconnection with the

13  transmission grid or distribution system.

14         Section 2.  Subsection (1) of section 366.11, Florida

15  Statutes, is amended to read:

16         366.11  Certain exemptions.--

17         (1)  No provision of this chapter shall apply in any

18  manner, other than as specified in ss. 366.04, 366.05(7) and

19  (8), 366.051, 366.055, 366.093, 366.095, 366.14, and

20  366.80-366.85, and 366.91, to utilities owned and operated by

21  municipalities, whether within or without any municipality, or

22  by cooperatives organized and existing under the Rural

23  Electric Cooperative Law of the state, or to the sale of

24  electricity, manufactured gas, or natural gas at wholesale by

25  any public utility to, and the purchase by, any municipality

26  or cooperative under and pursuant to any contracts now in

27  effect or which may be entered into in the future, when such

28  municipality or cooperative is engaged in the sale and

29  distribution of electricity or manufactured or natural gas, or

30  to the rates provided for in such contracts.

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    Florida Senate - 2005                                   SB 494
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 1         Section 3.  Subsection (3) of section 403.7061, Florida

 2  Statutes, is amended to read:

 3         403.7061  Requirements for review of new

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

 5  Environmental Protection.--

 6         (3)  An applicant must provide reasonable assurance

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

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

 9  with the following subsections:

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

11  government's integrated solid waste management program in the

12  jurisdiction where the facility is located and cannot be

13  avoided through feasible and practical efforts to use

14  recycling or waste reduction.

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

16  facilities within reasonable transportation distance of the

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

18  economically feasible when compared to the use of the proposed

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

20  paragraph does not apply to:

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

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

23  amendments to such applications that do not increase

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

25  or

26         2.  Any modification to waste-to-energy facility

27  construction or operating permits or certifications or

28  conditions thereto, including certifications under ss.

29  403.501-403.518, that do not increase combustion capacity

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

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    Florida Senate - 2005                                   SB 494
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 1         (c)  The county in which the facility is located has

 2  implemented a solid waste management and recycling program

 3  that is designed to achieve the waste-reduction goals

 4  established pursuant to forth in s. 403.706(4). The county in

 5  which the facility is located will achieve the 30-percent

 6  waste reduction goal set forth in s. 403.706(4) by the time

 7  the facility begins operation. For the purposes of this

 8  section, the provisions of s. 403.706(4)(c) for counties with

 9  populations of 75,000 or less do not apply.

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

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

12  reduction program for yard trash.

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

14  have implemented or participated in a separation program

15  designed to remove small-quantity generator and household

16  hazardous waste, mercury containing devices, and

17  mercuric-oxide batteries from the waste stream prior to

18  incineration, by the time the facility begins operation.

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

20  located has implemented a program to procure products or

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

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

23  which the facility is located for collecting and recycling

24  recovered material from the institutional, commercial, and

25  industrial sectors by the time the facility begins operation.

26         (h)  The facility will be in compliance with applicable

27  local ordinances and with the approved state and local

28  comprehensive plans required by chapter 163.

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

30  permit, conditions of certification, and any agreements or

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    Florida Senate - 2005                                   SB 494
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 1  orders resulting from environmental enforcement actions by

 2  state agencies.

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

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

 5  enclosed device using controlled combustion to thermally break

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

 7  ash residue that contains little or no combustible material

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

 9  result. The term does not include facilities that primarily

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

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

12  not include facilities that burn vegetative, agricultural, or

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

14  other landfill gas, wood fuel derived from construction or

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

16  with fossil fuels.

17         Section 4.  Requirements relating to solid waste

18  disposal facility permitting.--Local government applicants for

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

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

21  facility as an alternative to additional landfill space.

22         Section 5.  This act shall take effect October 1, 2005.

23  

24            *****************************************

25                          SENATE SUMMARY

26    Requires public utilities, municipal utilities, and rural
      electric cooperatives to offer a purchase contract to
27    producers of renewable energy. Defines the terms
      "biomass" and "renewable energy." Requires such contracts
28    to be for at least 10 years and to include payment
      provisions. Provides for cost recovery. Revises a permit
29    requirement for a waste-to-energy facility. Encourages
      consideration of waste-to-energy as an alternative to
30    landfilling.

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