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




    579-2264-06

  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.

26  

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

28  

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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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?

31  

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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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?

31  

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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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?

31  

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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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    Florida Senate - 2006                            CS for SB 890
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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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    Florida Senate - 2006                            CS for SB 890
    579-2264-06




 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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