Senate Bill sb2076

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    Florida Senate - 2007                                  SB 2076

    By Senator Bennett





    21-1503-07

  1                      A bill to be entitled

  2         An act relating to renewable energy; amending

  3         s. 366.051, F.S.; requiring the Florida Public

  4         Service Commission to authorize payment of a

  5         specified rate for certain purchases of biogas

  6         by a public utility; amending s. 526.302, F.S.;

  7         providing legislative intent with respect to

  8         compliance with federal standards for renewable

  9         fuels; amending s. 526.303, F.S.; redefining

10         the term "motor fuel" to include fuels having

11         less than a specified percent of ethanol or

12         biodiesel; amending s. 526.309, F.S.; exempting

13         certain sales of biodiesel or a blend of

14         ethanol or biodiesel with gasoline from the

15         Motor Fuel Marketing Practices Act; creating s.

16         570.956, F.S.; creating the Farm-to-Fuel

17         Advisory Council in the Department of

18         Agriculture and Consumer Services; requiring

19         the Commissioner of Agriculture to appoint

20         members of the council; providing for the

21         purpose, membership, and operation of the

22         council; providing an effective date.

23  

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

25  

26         Section 1.  Section 366.051, Florida Statutes, is

27  amended to read:

28         366.051  Cogeneration; small power production;

29  commission jurisdiction.--Electricity produced by cogeneration

30  and small power production benefits is of benefit to the

31  public when included as part of the total energy supply of the

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    Florida Senate - 2007                                  SB 2076
    21-1503-07




 1  entire electric grid of the state or consumed by a cogenerator

 2  or small power producer. The electric utility in whose service

 3  area a cogenerator or small power producer is located shall

 4  purchase, in accordance with applicable law, all electricity

 5  offered for sale by such cogenerator or small power producer;

 6  or the cogenerator or small power producer may sell such

 7  electricity to any other electric utility in the state. The

 8  commission shall establish guidelines relating to the purchase

 9  of power or energy by public utilities from cogenerators or

10  small power producers and may set rates at which a public

11  utility must purchase power or energy from a cogenerator or

12  small power producer. In fixing rates for power purchased by

13  public utilities from cogenerators or small power producers,

14  the commission shall authorize a rate equal to the purchasing

15  utility's full avoided costs. However, when a utility

16  purchases power generated from biogas produced by the

17  anaerobic digestion of agricultural waste, the commission

18  shall authorize a rate equal to the rate that the seller pays

19  the utility from which it receives electric service. A

20  utility's "full avoided costs" are the incremental costs to

21  the utility of the electric energy or capacity, or both,

22  which, but for the purchase from cogenerators or small power

23  producers, such utility would generate itself or purchase from

24  another source. The commission may use a statewide avoided

25  unit when setting full avoided capacity costs. If the

26  cogenerator or small power producer provides adequate

27  security, based on its financial stability, and no costs in

28  excess of full avoided costs are likely to be incurred by the

29  electric utility over the term during which electricity is to

30  be provided, the commission shall authorize the levelization

31  of payments and the elimination of discounts due to risk

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    Florida Senate - 2007                                  SB 2076
    21-1503-07




 1  factors in determining the rates.  Public utilities shall

 2  provide transmission or distribution service to enable a

 3  retail customer to transmit electrical power generated by the

 4  customer at one location to the customer's facilities at

 5  another location, if the commission finds that the provision

 6  of this service, and the charges, terms, and other conditions

 7  associated with the provision of this service, are not likely

 8  to result in higher cost electric service to the utility's

 9  general body of retail and wholesale customers or adversely

10  affect the adequacy or reliability of electric service to all

11  customers. Notwithstanding any other provision of law, power

12  generated by the customer and provided by the utility to the

13  customers' facility at another location is subject to the

14  gross receipts tax imposed under s. 203.01 and the use tax

15  imposed under s. 212.06.  Such taxes shall apply at the time

16  the power is provided at such other location and shall be

17  based upon the cost price of such power as provided in s.

18  212.06(1)(b).

19         Section 2.  Section 526.302, Florida Statutes, is

20  amended to read:

21         526.302  Legislative findings and intent.--The

22  Legislature finds that fair and healthy competition in the

23  marketing of motor fuel provides maximum benefits to consumers

24  in this state, and that certain marketing practices which

25  impair such competition are contrary to the public interest.

26  Predatory practices and, under certain conditions,

27  discriminatory practices, are unfair trade practices and

28  restraints which adversely affect motor fuel competition.  It

29  is the intent of the Legislature to encourage competition and

30  promote the general welfare of citizens of this state by

31  prohibiting such unfair practices. The Legislature also

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    Florida Senate - 2007                                  SB 2076
    21-1503-07




 1  intends to facilitate compliance with the Renewable Fuels

 2  Standard in the federal Energy Policy Act of 2005.

 3         Section 3.  Subsection (5) of section 526.303, Florida

 4  Statutes, is amended to read:

 5         526.303  Definitions.--As used in this act:

 6         (5)  "Motor fuel" means any petroleum product

 7  containing less than 10 percent by volume of ethanol or

 8  biodiesel, including any special fuel, which is used for the

 9  propulsion of motor vehicles.

10         Section 4.  Section 526.309, Florida Statutes, is

11  amended to read:

12         526.309  Exempt sales.--The Motor Fuel Marketing

13  Practice Act does provisions of this act shall not apply to:

14         (1)  The following retail sales by a refiner:

15         (a)(1)  A bona fide clearance sale for the purpose of

16  discontinuing trade in such motor fuel.

17         (b)(2)  A final business liquidation sale.

18         (c)(3)  A sale of the refiner's motor fuel by a

19  fiduciary or other officer under the order or direction of any

20  court.

21         (d)(4)  Sales made during a grand opening to introduce

22  a new or remodeled business not to exceed 3 days, which grand

23  opening shall be held within 60 days from the date the new or

24  remodeled business begins operations.

25         (2)  Sales of a blend of ethanol and gasoline in which

26  the percentage of ethanol by volume is 10 percent or more and

27  which is designated as EXX, substituting a number that

28  represents the percentage of ethanol in the blend for the XX

29  so that, for example, a blend having a volume of 10 percent

30  ethanol is designated as E10.

31         (3)  Sales of biodiesel.

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    Florida Senate - 2007                                  SB 2076
    21-1503-07




 1         (4)  Sales of a blend of biodiesel and gasoline in

 2  which the percentage of biodiesel by volume is 10 percent or

 3  more and which is designated as BXX, substituting a number

 4  that represents the percentage of biodiesel in the blend for

 5  the XX so that, for example, a blend having a volume of 10

 6  percent biodiesel is designated as B10.

 7         Section 5.  Section 570.956, Florida Statutes, is

 8  created to read:

 9         570.956  Farm-to-Fuel Advisory Council.--

10         (1)  The Farm-to-Fuel Advisory Council is created

11  within the department to provide advice and counsel to the

12  commissioner concerning the production of renewable energy in

13  this state. The advisory council consists of 12 members who

14  shall be appointed by the commissioner for 4-year terms or

15  until a successor is duly qualified and appointed. Members

16  shall include:

17         (a)  One citizen-at-large member who shall represent

18  the views of the public toward renewable energy.

19         (b)  Six members each of whom is a producer or grower

20  actively engaged in the agricultural area of one of the

21  following industries:

22         1.  Sugarcane.

23         2.  Citrus.

24         3.  Field crops.

25         4.  Dairy.

26         5.  Livestock or poultry.

27         6.  Forestry.

28         (c)  One member who represents the petroleum industry

29  or who is actively engaged in the trade of petroleum products.

30         (d)  One member who represents public utilities or the

31  electric power industry.

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    Florida Senate - 2007                                  SB 2076
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 1         (e)  Two members who represent colleges and

 2  universities in this state and who are engaged in research

 3  involving alternative fuels or renewable energy.

 4         (f)  One member who represents the environmental

 5  community or an environmental organization.

 6         (2)  The council is an advisory committee the operation

 7  of which is governed by s. 570.0705.

 8         Section 6.  This act shall take effect July 1, 2007.

 9  

10            *****************************************

11                          SENATE SUMMARY

12    Requires the Florida Public Service Commission to
      authorize payment of a specified rate for certain
13    purchases of biogas by a public utility. Revises a
      definition of the term "motor fuel" in the Motor Fuel
14    Marketing Practices Act to include fuels having less than
      a specified percentage of ethanol or biodiesel. Exempts
15    certain sales of biodiesel or of a blend of ethanol or
      biodiesel with gasoline from that act. Creates the
16    Farm-to-Fuel Advisory Council in the Department of
      Agriculture and Consumer Services. Requires the
17    Commissioner of Agriculture to appoint members of the
      council. Provides for the purpose, membership, and
18    operation of the council.

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