Senate Bill sb0890c1
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Florida Senate - 2006 CS for SB 890
By the Committee on Communications and Public Utilities; and
Senator Constantine
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1 A bill to be entitled
2 An act relating to energy; creating the Florida
3 Energy Commission, which is located within the
4 Office of Legislative Services for
5 administrative purposes; providing for the
6 membership of the commission; providing for
7 appointment, terms of office, and
8 qualifications of members; providing for voting
9 members to be reimbursed for per diem and
10 travel expenses; providing for meetings of the
11 commission; authorizing the commission to
12 employ staff; requiring that the commission
13 develop policy recommendations concerning
14 specified issues which are based on specified
15 guidelines; requiring an annual report to the
16 Governor, Cabinet, and Legislature; requiring a
17 report to the Governor, the Cabinet, and the
18 Legislature regarding the reduction of
19 greenhouse gasses in the state; transferring
20 all powers, functions, records, personnel,
21 property, and unexpended balances of
22 appropriations of the state energy program
23 within the Department of Environmental
24 Protection to the Florida Energy Commission;
25 providing an effective date.
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27 Be It Enacted by the Legislature of the State of Florida:
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29 Section 1. Florida Energy Commission.--
30 (1) The Florida Energy Commission is created and shall
31 be located within the Office of Legislative Services for
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1 administrative purposes. The commission shall be comprised of
2 a total of 19 members, of whom nine shall be voting members
3 and ten shall be nonvoting members, as follows:
4 (a) The voting members shall be appointed as follows:
5 three shall be appointed by the Governor, three shall be
6 appointed by the President of the Senate in consultation with
7 the minority leader, and three shall be appointed by the
8 Speaker of the House of Representatives in consultation with
9 the minority leader. Voting members shall be appointed to
10 4-year terms; however, in order to establish staggered terms,
11 for the initial appointments each appointing official shall
12 appoint one member to a 2-year term, one member to a 3-year
13 term, and one member to a 4-year term. Voting members must
14 meet the following qualifications and restrictions:
15 1. A voting member must be an expert in one or more of
16 the following fields: energy, natural resource conservation,
17 economics, engineering, finance, law, consumer protection,
18 state energy policy, or another field substantially related to
19 the duties and functions of the commission. The commission
20 shall fairly represent the fields specified in this
21 subparagraph.
22 2. A voting member may not, at the time of appointment
23 or during his or her term of office:
24 a. Have any financial interest, other than ownership
25 of shares in a mutual fund, in any business entity that,
26 directly or indirectly, owns or controls, or is an affiliate
27 or subsidiary of, any business entity that may profit by the
28 policy recommendations developed by the commission.
29 b. Be employed by or engaged in any business activity
30 with any business entity that, directly or indirectly, owns or
31 controls, or is an affiliate or subsidiary of, any business
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Florida Senate - 2006 CS for SB 890
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1 entity that may profit by the policy recommendations developed
2 by the commission.
3 (b) The nonvoting members shall include:
4 1. The chair of the Florida Public Service Commission;
5 2. The Public Counsel;
6 3. The Commissioner of Agriculture;
7 4. The Secretary of Environmental Protection;
8 5. The Secretary of Community Affairs;
9 6. The Secretary of Transportation;
10 7. The Secretary of Health;
11 8. The director of the Office of Insurance Regulation;
12 9. The chair of the State Board of Education; and
13 10. The director of the Florida Solar Energy Center.
14 (2) Voting members shall serve without compensation,
15 but are entitled to reimbursement for per diem and travel
16 expenses as provided by s. 112.061, Florida Statutes.
17 Nonvoting members shall serve at the expense of the entity
18 they represent.
19 (3) The Governor shall select the chair. Meetings of
20 the commission shall be held in various locations around the
21 state and at the call of the chair; however, the commission
22 must meet at least twice each year.
23 (4)(a) The commission may employ staff to assist in
24 the performance of its duties, including an executive
25 director, an attorney, a communications person, and an
26 executive assistant.
27 (b) Agencies whose heads serve as nonvoting members
28 shall supply staff and resources as necessary to provide
29 information needed by the commission.
30 (c) The commission may appoint focus groups to
31 consider specific issues.
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1 (5) The commission shall develop recommendations for
2 legislation to establish a state energy policy, giving
3 consideration to the issues set forth in subsections (8) and
4 (9). The recommendations of the commission shall be based on
5 the guiding principles of reliability, efficiency,
6 affordability, and diversity as provided in subsection (7).
7 The commission shall continually review the state energy
8 policy and shall recommend to the Legislature any additional
9 necessary changes or improvements. The commission shall also
10 perform other duties as set forth in general law.
11 (6) The commission shall report by December 31 of each
12 year to the Governor, the Cabinet, the President of the
13 Senate, and the Speaker of the House of Representatives on its
14 progress and recommendations, including draft legislation. The
15 commission's initial report must identify incentives for
16 research, development, or deployment projects involving the
17 goals and issues set forth in this section; set forth
18 recommendations for improvements to the electricity
19 transmission and distribution system, including recommended
20 incentives to encourage electric utilities and local
21 governments to work together in good faith on issues of
22 underground utilities; set forth the appropriate test for the
23 Florida Public Service Commission to use in determining which
24 energy efficiency programs are cost-effective and should be
25 implemented, together with the rationale in selecting the
26 test; and set forth a plan of action, together with a
27 timetable, for addressing the remaining issues.
28 (7) In developing its recommendations, the commission
29 shall be guided by the principles of reliability, efficiency,
30 affordability, and diversity, and more specifically as
31 follows:
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1 (a) The state should have a reliable electric supply,
2 with adequate reserves.
3 (b) The transmission and delivery of electricity
4 should be reliable.
5 (c) The generation, transmission, and delivery of
6 electricity should be accomplished with the least detriment to
7 the environment and public health.
8 (d) The generation, transmission, and delivery of
9 electricity should be accomplished compatibly with the goals
10 for growth management.
11 (e) Electricity generation, transmission, and delivery
12 facilities should be reasonably secure from damage, taking all
13 factors into consideration, and recovery from damage should be
14 prompt.
15 (f) Electric rates should be affordable, as to base
16 rates and all recovery-clause additions, with sufficient
17 incentives for utilities to achieve this goal.
18 (g) This state should have a reliable supply of motor
19 vehicle fuels, both under normal circumstances and during
20 hurricanes and other emergency situations.
21 (h) In-state research, development, and deployment of
22 alternative energy technologies and alternative motor vehicle
23 fuels should be encouraged.
24 (i) When possible, the resources of this state should
25 be used in achieving these goals.
26 (j) Consumers of energy should be encouraged and given
27 incentives to be more efficient in their use of energy.
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29 In choosing between conflicting or competing goals, the
30 commission shall balance the projected benefits of affordable,
31 reliable energy supplies against detrimental cost and
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1 environmental impacts and recommend the best solution, with a
2 complete and detailed explanation of the factors considered
3 and the rationale for the decision.
4 (8) The commission shall develop policy
5 recommendations concerning the following issues relating to
6 electric energy:
7 (a) Are the current projections for growth in
8 population and electricity demand and corresponding projected
9 increases in capacity sufficient to meet needs?
10 (b) With respect to fossil fuels:
11 1. What are the projections for the availability and
12 the cost of fossil fuels used to generate electricity?
13 2. Can and should this state reduce its reliance on
14 domestic or foreign petroleum products?
15 3. What, if anything, should be done to improve fuel
16 supplies during normal conditions and in emergencies?
17 4. What, if anything, should be done to encourage
18 additional methods and routes of fuel delivery?
19 5. Should this state seek redundant natural gas
20 pipelines in order to have a safety net?
21 6. What other improvements, if any, should be made to
22 methods of fuel delivery?
23 7. What, if anything, should be done to increase
24 in-state storage of coal and natural gas?
25 8. Would additional coal plants be beneficial, and if
26 so, what should be done to encourage the construction of such
27 plants?
28 (c) With respect to fuel diversity and alternative
29 energy technology:
30 1. What role does fuel diversity play in maximizing
31 reliability and minimizing costs?
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1 2. Would additional nuclear plants be beneficial, and
2 if so, what should be done to encourage the construction of
3 such plants?
4 3. What alternative energy technologies are available
5 and technically and economically feasible in this state and
6 what, if anything, should be done to encourage the use of
7 these resources?
8 (d) With respect to the environmental effects of
9 fossil fuels, alternative fuels, and alternative technologies:
10 1. What types and levels of pollution are involved
11 with each type of fuel and technology?
12 2. Can the pollution be avoided or reduced, and if so,
13 what are the costs?
14 3. Should the Legislature enact pollution standards,
15 and if so, should they be fuel-specific or a more general
16 pollution-portfolio standard that applies to all types of
17 fuels and technologies?
18 4. What, if anything, should the state do to reduce
19 carbon emissions, taking into consideration what the federal
20 government and other states are doing?
21 5. How do these issues affect fuel and generation
22 choices?
23 (e) With respect to demand-side management and
24 efficiency:
25 1. What role, if any, should demand-side management
26 and efficiency play in meeting electric needs?
27 2. What, if anything, should be done to improve
28 demand-side management and efficiency of electricity?
29 3. What state entity should be involved in encouraging
30 and monitoring demand-side management and efficiency?
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1 4. What technology, if any, should be used to
2 encourage advanced metering systems and innovative price
3 signals?
4 5. What can the state do as a consumer of energy to
5 decrease its use of energy and to be more efficient in its use
6 of energy?
7 6. What is the appropriate test for the Florida Public
8 Service Commission to use in determining which energy
9 efficiency programs are cost-effective and should be
10 implemented?
11 (f) With respect to transmission and distribution
12 facilities:
13 1. What, if anything, should be done to generally
14 improve the siting of transmission and distribution lines?
15 2. What technology, if any, should be used to make
16 transmission and distribution more efficient?
17 3. Should multiple electric lines be located together
18 to minimize the effect on property or located separately to
19 increase reliability?
20 4. What are the projections for hurricanes?
21 5. What, if anything, should be done to strengthen or
22 harden transmission facilities or otherwise improve their
23 security and reliability?
24 6. How do fuel and technology choices affect planning
25 for and recovering from hurricanes?
26 7. Should distributed generation be considered as part
27 of the solution for reliability or for the purpose of avoiding
28 additional transmission or generation?
29 8. What types of threats to the electric system, other
30 than hurricanes, should be taken into consideration in this
31 planning?
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1 (g) With respect to energy and growth management:
2 1. How can the state best provide adequate energy
3 facilities for existing populations?
4 2. How can the state best provide for compatible goals
5 and laws for future energy and growth-management needs?
6 3. How should issues of restoring energy supplies
7 after a hurricane or other emergency affect growth management
8 and local government goals and laws?
9 4. What changes, if any, should be made to where
10 energy generation, transmission, and distribution facilities
11 are sited, and what changes, if any, should be made to how
12 strategic or essential service facilities are sited relative
13 to those energy supplies?
14 (h) In making all these choices, what, if anything,
15 should be done to avoid or minimize price increases in base
16 rates or recovery clauses for consumers?
17 (i) With respect to research, development, and
18 deployment of new or alternative energy technologies:
19 1. What, if anything, should be done to encourage
20 in-state energy research, both public and private?
21 2. If encouragement of research is appropriate, what
22 types of research should be encouraged?
23 3. What, if anything, should be done to encourage
24 universities, other state entities, and the private sector to
25 work together in the research, development, and deployment of
26 alternative energy technology, without creating an economic
27 disincentive for any entity?
28 4. What, if anything, should be done in terms of
29 recruiting companies operating in the energy fields to
30 relocate to this state?
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1 5. What, if anything, should be done to provide
2 funding or assist in obtaining funding for research or for
3 energy companies in order to further in-state research and the
4 development of energy technologies?
5 6. What state entities should be involved in these
6 functions?
7 7. What are the potential effects of these issues and
8 choices on tourism, agriculture, small businesses, and
9 industry in the state?
10 (9) The commission shall develop policy
11 recommendations concerning the following issues relating to
12 motor vehicle fuels:
13 (a) With respect to fossil fuels:
14 1. What are the projections for the availability and
15 cost of motor vehicle fossil fuel?
16 2. What, if anything, should be done to increase the
17 availability of motor vehicle fossil fuels in this state
18 during normal circumstances and during hurricanes or other
19 emergencies?
20 3. What, if anything, should be done to improve the
21 delivery of fuel into the state?
22 4. What, if anything, should be done relative to
23 ports? What, if anything, should be done to improve port
24 deliveries? What, if anything, should be done to improve the
25 capacity and service at existing ports or to open more ports?
26 5. What, if anything, should be done to encourage
27 pipelines?
28 6. What, if anything, should be done to improve the
29 security of and access to in-state supplies?
30 7. What improvements, if any, should be made relating
31 to the in-state storage of motor vehicle fuels?
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1 8. What else, if anything, should be done to avoid or
2 ameliorate shortages and price increases?
3 (b) With respect to alternatives to fossil fuels for
4 motor vehicles:
5 1. What, if anything, should be done to encourage the
6 use of alternative fuels?
7 2. What, if anything, should be done to produce fuels
8 within this state and to maximize the state's resources?
9 3. What facilities for fuel distribution and sales
10 would be necessary, and what, if anything, should be done to
11 encourage the development of these facilities?
12 4. What effect would these alternatives have on the
13 recovery from hurricanes or other emergencies?
14 5. What can the state do as a consumer of motor
15 vehicle fuels to decrease its use of such fuels and to be more
16 efficient in its use of fuels?
17 (c) What can be done to maximize the compatibility of
18 any system changes and growth-management goals and laws?
19 (d) With respect to the research, development, and
20 deployment of alternative fuels:
21 1. What, if anything, should be done to encourage
22 in-state research, both public and private?
23 2. What, if anything, should be done to encourage
24 universities to work together, with other state entities, and
25 with the private sector in the research, development, and
26 deployment of alternative fuels, without creating any
27 disincentive for any entity?
28 3. What, if anything, should be done to recruit or
29 encourage companies working with alternative fuels to locate
30 in this state?
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1 4. What, if anything, should be done to provide
2 funding or assist in obtaining funding for universities, state
3 entities, or the private sector in order to encourage in-state
4 research and development of energy technologies relating to
5 motor vehicles?
6 5. What state entities should be involved in these
7 functions?
8 6. What are the potential effects of these issues and
9 choices on tourism, agriculture, small business, and industry
10 in the state?
11 (10)(a) The commission shall, by December 31, 2007,
12 submit a report to the Governor, the Cabinet, the President of
13 the Senate, and the Speaker of the House of Representatives
14 which recommends consensus-based public-involvement processes
15 to reduce greenhouse gas emissions in this state and to make
16 such reductions and related economic, energy, and
17 environmental co-benefits a state priority.
18 (b) The report must include recommended steps and a
19 schedule for the development of a comprehensive state climate
20 action plan with statewide greenhouse-gas-reduction goals and
21 a range of specific policy options for all economic sectors to
22 be developed through a public-involvement process, including
23 transportation and land use; power generation; residential,
24 commercial, and industrial activities; waste management;
25 agriculture and forestry; emissions-reporting systems; and
26 public education.
27 (c) The climate action plan must include:
28 1. Recommendations for the development of an annual
29 greenhouse-gas-emissions inventory by the Department of
30 Environmental Protection, recommendations for the development
31 of a current comprehensive inventory of state greenhouse gas
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1 emissions since 1990 and a similar forecast of state
2 greenhouse gas emissions from the present to the year 2020 or
3 later.
4 2. Recommended steps to identify areas where specific
5 greenhouse-gas-reduction policies are feasible; the costs and
6 benefits of each recommendation; methods for helping
7 individuals, institutions, and businesses reduce emissions; an
8 implementation schedule; and identification of funding
9 requirements for the development and implementation of
10 strategies.
11 3. Consideration of the feasibility of establishing by
12 law a greenhouse-gas-reduction target to lower greenhouse gas
13 emissions in the state below the forecasted levels of
14 emissions growth in the future at maximum achievable levels.
15 (d) The commission may appoint technical advisory
16 committees and technical assistance providers to provide
17 recommendations to assist with the intent of this subsection.
18 Section 2. The state energy program, as authorized and
19 governed by ss. 377.701 and 377.703, Florida Statutes,
20 including all statutory powers, duties, functions, rules,
21 records, personnel, property, and unexpended balances of
22 appropriations, allocations, and other funds associated with
23 the program, is transferred intact by a type two transfer, as
24 defined in s. 20.06(2), Florida Statutes, from the Department
25 of Environmental Protection to the Florida Energy Commission.
26 Section 3. This act shall take effect upon becoming a
27 law.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 SB 890
3
4 The Committee Substitute for Senate Bill 890:
5 -creates the Florida Energy Commission and requires that the
Commission develop recommendations for a statewide energy
6 policy based on stated guidelines and considerations; and
7 -transfers the Energy Office from the Department of
Environmental Protection to the Commission.
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