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Senator Saunders moved the following amendment:

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     Senate Amendment (with directory and title amendments)

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     Delete line(s) 2142-2261

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and insert:

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

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(a) "Renewable energy credit" or "REC" means a product that

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represents the unbundled, separable, and renewable attribute of

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renewable energy produced in Florida and is equivalent to 1

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megawatt-hour of electricity generated by a source of renewable

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energy located in Florida.

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(b) "Provider" means an electric utility or utility as

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defined in s. 366.8255(1)(a).

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(c) "Renewable Energy" means energy produced from a method

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that uses one or more of the following fuels or energy sources:

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solar thermal, solar hot water, geothermal energy, or as provided

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in s. 366.91(2)(b).

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(d) "Renewable portfolio standard" or "RPS" means the

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minimum percentage of total annual retail electricity sales by a

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provider to consumers in Florida, which shall be supplied by

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renewable energy produced in Florida.

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(4)(a) The commission shall adopt rules for a renewable

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portfolio standard requiring each provider to supply renewable

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energy to its customers, whether directly, by procurement, or

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through renewable energy credits. In developing the RPS rule,

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the commission shall consult the Department of Environmental

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Protection and the Florida Energy and Climate Commission. The

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commission shall present a draft rule for legislative

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consideration by February 1, 2009. The rule may not be

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implemented until ratified by the Legislature.

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(b) In developing the rule, the commission shall evaluate

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the current and forecasted levelized cost in cents per kilowatt

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hour through 2020 and current and forecasted installed capacity

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in kilowatts for each renewable energy generation method through

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2020.

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(c) The commission's rule shall include methods of managing

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the cost of compliance with the portfolio standard, whether

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through direct supply, through the procurement of renewable

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power, or through the purchase of renewable energy credits. The

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commission shall have rulemaking authority for providing annual

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cost recovery and incentive-based adjustments to authorized rates

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of return on common equity to providers to incentivize renewable

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energy. Notwithstanding s. 366.91(3) and (4), upon the effective

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date of the rule, the commission is authorized to approve

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projects and power sales agreements with renewable power

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producers, and the sale of renewable energy credits which are

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needed to comply with the RPS. In the event of any conflict,

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this section shall supersede s. 366.91(3) and (4).

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(d) The commission's rule shall provide for appropriate

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compliance measures and the conditions under which compliance

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shall be excused due to a determination by the commission that

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the supply of renewable energy or renewable energy credits was

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not adequate to satisfy the demand for such energy, or that the

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cost of securing renewable energy or renewable energy credits was

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cost-prohibitive.

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(e) The commission's rule shall provide added weight to

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energy provided by wind and solar energy over other forms of

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renewable energy, whether directly supplied, procured, or

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indirectly obtained through the purchase of renewable energy

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credits.

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(f) The commission's rule shall determine an appropriate

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period of time for which renewable energy credits may be used for

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purposes of compliance with the renewable portfolio standard.

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(g) The commission's rule shall:

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1. Determine an appropriate period of time for which

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renewable energy credits may be used for purposes of compliance

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with the renewable portfolio standard.

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2. Provide for the monitoring of compliance with and

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enforcement of the requirements of this section.

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3. Ensure that energy credited toward compliance with the

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provisions of this section are not credited toward any other

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purpose.

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4. Develop procedures to track and account for renewable

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energy credits, including ownership of renewable energy credits

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that are derived from a customer-owned renewable energy facility

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as a result of any action by a customer of an electric power

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supplier that is independent of a program sponsored by the

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electric power supplier.

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(h) The commission's rule shall provide for the conditions

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and options for the repeal or alteration of the rule in the event

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that new provisions of federal law supplant or conflict with the

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rule.

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(i) Beginning on April 1 of the year following the effective

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date of the rule, each provider shall submit a report to the

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commission describing the steps that have been taken in the

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previous year and the steps that will be taken in the future to

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add renewable energy to the provider's energy supply portfolio.

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The report shall state whether the provider was in compliance

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with the RPS during the previous year and how it will comply with

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the RPS in the upcoming year.

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(5) In order to demonstrate the feasibility and viability of

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clean energy systems, the commission shall provide for full cost

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recovery under the environmental cost-recovery clause of all

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reasonable and prudent costs incurred by a provider for renewable

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energy projects that are zero greenhouse gas emitting at the

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point of generation, up to a total of 110 megawatts statewide,

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and for which the provider has secured necessary land, zoning

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permits, and transmission rights within the state. Such costs

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shall be deemed reasonable and prudent for purposes of cost

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recovery so long as the provider has used reasonable and

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customary industry practices in the design, procurement, and

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construction of the project in a cost-effective manner

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appropriate to the location of the facility. The provider shall

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report to the commission as part of the cost-recovery proceedings

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the construction costs, in-service costs, operating and

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maintenance costs, hourly energy production of the renewable

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energy project, and any other information deemed relevant by the

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commission. Any provider constructing a clean energy facility

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pursuant to this section shall file for cost recovery no later

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than July 1, 2009.

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(6) Each municipal electric utility and rural electric

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cooperative shall develop standards for the promotion,

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encouragement, and expansion of the use of renewable energy

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resources and energy conservation and efficiency measures. On or

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before April 1, 2009, and annually thereafter, each municipal

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electric utility and electric cooperative shall submit to the

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commission a report that identifies such standards.

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(7) No provision in this section shall be construed to

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impede or impair terms and conditions in existing contracts.

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(3) The commission may adopt appropriate goals for

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increasing the use of existing, expanded, and new Florida

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renewable energy resources. The commission may change the goals.

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The commission may review and reestablish the goals at least

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once every 5 years.

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(8)(4) The commission shall adopt rules to administer and

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implement the provisions of this section.

4/16/2008  4:34:00 PM     EP.37.07798