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The Committee on Environmental Preservation and Conservation

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(Dockery) recommended the following amendment to amendment

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(223658):

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     Senate Amendment (with title amendment)

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     Between line(s) 1631 and 1632

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insert:

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     Section 26. Definitions.--

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     (1) "Renewable energy credit" or "credit" means a credit

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equal to the generation attributes of 1 megawatt-hour of

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electricity that is derived from a Tier 1 or Tier 2 renewable

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generator.

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     (2) "Renewable energy portfolio standard" or "standard"

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means the percentage of electricity sales at retail in the state

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that is to be derived from Tier 1, and Tier 2 renewable sources

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in accordance with this subtitle.

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     (3) "Florida Renewable Energy Trust Fund" is defined as the

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fund created by section 31.

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     (4) "Tier 1 renewable generator" means a person or entity

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that generates electricity from a Tier 1 renewable source that

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provides electricity to a customer for the customer's own use or

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provides electricity to the electrical distribution system of the

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state without using the federally regulated interstate electrical

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transmission system.

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     (5) "Tier 2 renewable generator" means a person or entity

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that generates electricity from a Tier 2 renewable source that

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provides electricity to a customer for the customer's own use or

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provides electricity delivered to the state.

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     (6) "Tier 1 renewable source" means an electric power

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generator or an offset of need from an electric power generator

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from a solar thermal source using one or more of the following

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types of energy sources:

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     (a) Solar photovoltaic;

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     (b) Solar thermally heated hot water;

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     (c) Wind; or

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     (d) Other electric power generators using a renewable

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source and producing zero emissions.

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     (7) "Tier 2 renewable source" means an electric power

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generator using one or more of the following types of energy

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sources:

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     (a) Solar;

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     (b) Wind;

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     (c) Biomass; and

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     (d) Municipal solid waste.

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     Section 27. Renewable energy portfolio standard.--

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     (1) The Legislature hereby creates, and the Public Service

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Commission shall implement, a renewable energy portfolio standard

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that, except as provided in subsection (2), applies to all retail

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electricity sales by utilities in the state.

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     (2) The renewable energy portfolio standard shall be as

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follows:

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     (a) In 2009, 0.12 percent of all Florida retail electricity

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sales shall be comprised of Tier 1 renewable sources and 2.4

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percent of all Florida retail electricity sales shall be

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comprised of Tier 2 renewable sources;

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     (b) In 2025 and each year thereafter, 5 percent of all

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retail electricity sales shall be comprised of Tier 1 renewable

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sources, of which not less than 2 percent shall be solar

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photovoltaic, 2 percent from solar thermally heated hot water,

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and 15 percent from Tier 2 renewable sources.

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     (3) The commission shall establish by rule the annual

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percentage targets for Tier 1 and Tier 2 resources for the years

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2010 through and including 2024.

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     (4) As of January 1, 2008, each utility, except electric

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cooperatives, shall meet the renewable energy portfolio standard

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by accumulating the equivalent amount of renewable energy credits

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that equal the percentage required and calculated under this

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section.

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     Section 28. Alternative compliance payment.--

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     (1) Each utility shall submit a report to the commission on

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or before December 31 of each year showing the credits purchased

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and retired to meet the requirements of the Renewable Energy

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Portfolio Standard. The report shall be in a form specified by

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the commission.

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     (2) If a utility fails to comply with the renewable energy

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portfolio standard for the applicable year, the utility shall pay

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into the Florida Renewable Energy Fund established in this act:

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     (a) A compliance payment of $633 for each credit of

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shortfall from required Tier 1 renewable sources. This compliance

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fee does not apply to any costs for Tier 1 renewable energy

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credits to be used for compliance in any one year where the total

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costs for credits and compliance fees is greater than or equal to

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1 percent of the annual electricity sales revenue for an electric

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company.

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     (b) A compliance payment of $50 for each credit of

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shortfall from required Tier 2 renewable sources. This compliance

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payment does not apply to any costs for Tier 2 renewable energy

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credits to be used for compliance in any one year where the total

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costs for credits and compliance fees is greater than or equal to

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2 percent of the annual electricity sales revenue for an electric

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company.

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     (3) The commission shall reduce the compliance fee for Tier

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1 by 5 percent for each of the 3 years subsequent to 2009, by 10

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percent for each of the 3 years subsequent to 2012, and by 20

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percent thereafter.

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     Section 29. Contract terms.--

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     (1) The commission shall establish by rule the quantity of

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Tier 1 credits to be derived annually under Tier 1 requirements

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to ensure participation from each of following customer segments:

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commercial solar thermal, residential solar thermal, large

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commercial photovoltaic, small commercial photovoltaic,

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residential photovoltaic, low-income and multifamily

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photovoltaic, or solar thermal. The commission shall develop

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procedures, forms, eligibility criteria, and all other

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requirements in a manner that is clear, simple, and

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straightforward in order to minimize the time and effort required

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for participation of homeowners and small businesses in the

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renewable portfolio requirements.

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     (2) If a utility purchases Tier 1 renewable energy credits

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to meet the Tier 1 renewable energy portfolio standard, the

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duration of the contract term for the Tier 1 renewable source

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shall be no less than 15 years if the contract is with the owner

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of a Tier 1 system.

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     (3) For Tier 1 photovoltaic solar systems or solar

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thermally heated hot water systems, greater than 0.5 kW(dc) up to

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and including 10 kW(dc), or the commission calculated equivalent

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for solar thermal, which become operational on or after January

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1, 2008, the utility must offer to make a one-time upfront

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payment for the credits contracted to be transferred from the

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customer to the electric supplier. The customer must enter into

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an agreement with the electric supplier, with a minimum term of

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15 years, which transfers the credits generated by the on-site

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solar system during the term of the agreement from the customer

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to the electric supplier. Any customer that receives the payment

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for credits under this subsection is not entitled to any other

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compensation for credits contracted to be transferred to the

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utility.

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     Section 30. Environmental attributes.--

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     (1) Any owner of any Tier 1 or Tier 2 renewable source is

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eligible to produce credits that may be used in meeting the

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renewable energy portfolio standard regardless of when the

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generating system or facility was placed in service.

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     (2) Any owner of any Tier 1 renewable source that is net

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metered is eligible to produce credits from all of the energy

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produced from the Tier 1 renewable source.

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     (3) In order to create a renewable energy credit, a Tier 1

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renewable source or Tier 2 renewable source must substantially

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comply with all applicable environmental and administrative

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requirements.

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     (4) A utility shall receive credit toward meeting the Tier

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2 renewable energy portfolio standard for electricity derived

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from the biomass for the fraction of biomass co-fired with other

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fuels in an electric power generator.

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     (5) An owner of a generator using municipal solid waste as

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a fuel source may apply to receive Tier 2 credits only if at

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least 80 percent of the solid waste incinerated at a Tier 2

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renewable source facility is collected from jurisdictions that

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achieve the recycling rates determined by the Department of

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Environmental Protection.

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     (6) A utility may use accumulated renewable energy credits

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irrespective of the date upon which the credit was created to

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meet the renewable energy portfolio standard.

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     (7) A utility may use for compliance renewable energy

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credits expected to be generated in a future month, up to 12

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months in the future, if:

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     (a) The utility has a contract with the renewable generator

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owner that complies with subsection (2) or subsection (3) for

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which credit delivery is to occur in a future year; and

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     (b) Credits borrowed from a future month are replaced in

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the month in which they were expected to be generated at a ratio

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of 1.1 credits for each credit borrowed.

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     (8) The commission shall adopt rules governing the

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transfer, tracking, and retirement of credits under this section.

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     Section 31. Florida Renewable Energy Fund.--

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     (1) There is created the Florida Renewable Energy Fund.

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     (2) The purpose of the fund is to encourage the development

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of residential usage of Tier 1 renewable energy in the state.

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     (3) The fund shall receive funding from the following

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sources:

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     (a) Alternative compliance payments as described in this

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act;

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     (b) Investment earnings of the fund; and

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     (c) Any other money from any other source accepted for the

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benefit of the fund which may include, but is not limited to, a

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portion of the funds collected under this act.

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     (4) By rule the commission shall adopt eligibility criteria

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for projects supported by the fund.

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     (5) The fund shall be administered by the Department of

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Environmental Protection or the department's designee who may

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provide incentives in the form of rebates to ensure the goals of

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the commission are met.

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     (6) The Department of Environmental Protection may spend up

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to 10 percent of the funds placed in the fund for administrative

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expenses.

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     Section 32. Cost recovery.--

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     (1) The commission shall impose an energy surcharge on

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utility customer bills to provide cost recovery to utilities that

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implement and comply with the requirements of this section. Cost

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recovery shall be limited to actual costs incurred for the

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purchase of credits plus administrative costs not exceeding 10

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percent of the total costs to purchase credits.

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     (2) The commission may not allow cost recovery for the

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payment into the fund of compliance fees if the commission

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determines the utility was offered a valid and bona fide offer to

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sell credits from a electric power generator constructed or to be

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constructed which meets Tier 1 or Tier 2 requirements.

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     Section 33. Interconnection.--The commission shall adopt

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rules for the interconnection of customer-owned generation using

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the model rules of the Interstate Renewable Energy Council MR-

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I2005 as a guide.

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     Section 34. Rates.--The commission shall direct utilities

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to adopt rate structures predominantly or completely based on

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energy consumption which encourages the use of renewable

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generation by customers.

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     Section 35. Regulation of onsite renewable

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resources.--Generation of Tier 1 electricity from an on-site

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source provided to a single customer at that site may not be

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considered electricity sales for the purposes of rate regulation

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or other regulation by the commission other than for the purpose

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of creating Tier 1 renewable energy credits. An on-site source

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may be located on a property contiguous to the customer.

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     Section 36.  Section 196.175, Florida Statutes, is amended

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to read:

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     196.175  Renewable energy source exemption.--

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     (1) Improved real property upon which a device that

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collects, transmits, stores, or uses energy from a Tier 1 or Tier

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2 renewable energy source renewable energy source device is

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installed and operated shall be entitled to an exemption in the

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amount of not greater than the lesser of:

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     (a) The assessed value of such real property less any other

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exemptions applicable under this chapter;

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     (b) the original cost of the device, including the

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installation cost thereof, but excluding the cost of replacing

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previously existing property removed or improved in the course of

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such installation; or

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     (c) Eight percent of the assessed value of such property

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immediately following installation.

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     (2)  The exempt amount authorized under subsection (1) shall

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apply in full if the device was installed and operative

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throughout the 12-month period preceding January 1 of the year of

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application for this exemption. If the device was operative for a

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portion of that period, the exempt amount authorized under this

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section shall be reduced proportionally.

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     (3)  It shall be the responsibility of the applicant for an

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exemption pursuant to this section to demonstrate affirmatively

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to the satisfaction of the property appraiser that he or she

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meets the requirements for exemption under this section and that

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the original cost pursuant to paragraph (1)(b) and the period for

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which the device was operative, as indicated on the exemption

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application, are correct.

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     (4)  No exemption authorized pursuant to this section shall

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be granted for a period of more than 10 years. No exemption shall

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be granted with respect to renewable energy source devices

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installed before July 1, 2008 January 1, 1980, or after December

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31, 1990.

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     Section 37.  Paragraph (b) of subsection (1) and subsection

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(2) of section 220.192, Florida Statutes, are amended to read:

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     220.192  Renewable energy technologies investment tax

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credit.--

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     (1)  DEFINITIONS.--For purposes of this section, the term:

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     (b)  "Eligible costs" means:

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     1.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $3

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million per state fiscal year for all taxpayers, in connection

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with an investment in hydrogen-powered vehicles and hydrogen

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vehicle fueling stations in the state, including, but not limited

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to, the costs of constructing, installing, and equipping such

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technologies in the state.

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     2.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $1.5

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million per state fiscal year for all taxpayers, and limited to a

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maximum of $12,000 per fuel cell, in connection with an

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investment in commercial stationary hydrogen fuel cells in the

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state, including, but not limited to, the costs of constructing,

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installing, and equipping such technologies in the state.

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     3.  Seventy-five percent of all capital costs, operation and

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maintenance costs, and research and development costs incurred

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between July 1, 2006, and June 30, 2010, up to a limit of $6.5

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million per state fiscal year for all taxpayers, in connection

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with an investment in the production, storage, and distribution

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of biodiesel (B10-B100) and ethanol (E10-E100) in the state,

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including the costs of constructing, installing, and equipping

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such technologies in the state. Gasoline fueling station pump

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retrofits for ethanol (E10-E100) distribution qualify as an

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eligible cost under this subparagraph.

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     4. Ten percent of all costs, not to exceed $750,000 per

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installation, associated with the installation of a device that

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collects, transmits, stores, or uses energy from a Tier 1 or Tier

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2 renewable energy source.

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     (2)  TAX CREDIT.--For tax years beginning on or after

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January 1, 2007, a credit against the tax imposed by this chapter

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shall be granted in an amount equal to the eligible costs.

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Credits may be used in tax years beginning January 1, 2007, and

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ending December 31, 2010, after which the credit shall expire. If

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the credit is not fully used in any one tax year because of

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insufficient tax liability on the part of the corporation, the

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unused amount may be carried forward and used in tax years

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beginning January 1, 2007, and ending December 31, 2012, after

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which the credit carryover expires and may not be used. In the

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case of the credit for costs under subparagraph (1)(b)4., credits

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may be used in tax years beginning January 1, 2008, without

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expiration, and any unused credit amounts may be carried forward

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and used in tax years beginning January 1, 2008, and without

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expiration. A taxpayer that files a consolidated return in this

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state as a member of an affiliated group under s. 220.131(1) may

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be allowed the credit on a consolidated return basis up to the

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amount of tax imposed upon the consolidated group. Any eligible

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cost for which a credit is claimed and which is deducted or

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otherwise reduces federal taxable income shall be added back in

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computing adjusted federal income under s. 220.13.

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================ T I T L E  A M E N D M E N T ================

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And the title is amended as follows:

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     On line(s) 2318, after the first semicolon,

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insert:

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providing definitions relating to a renewable energy

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portfolio standard; creating a renewable energy portfolio

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standard; requiring the Public Service Commission to

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implement a renewable energy portfolio standard that

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applies to all retail electricity sales; requiring the

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commission to adopt rules; requiring each utility to meet

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the renewable energy portfolio standard by a certain date;

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exempting electric cooperatives; requiring a utility to

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submit a report to the commission by a certain date each

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year which illustrates the credits purchased and retired;

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providing a penalty for not submitting such report;

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requiring the commission to adopt rules establishing the

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quantity of certain credits and the transfer, tracking,

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and retirement of such credits; providing eligibility

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standards for producing renewable energy credits; creating

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the Florida Renewable Energy Trust Fund; requiring the

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commission to adopt eligibility criteria for projects that

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are supported by the fund; providing that such fund be

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administered by the Department of Environmental

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Protection; authorizing the Public Service Commission to

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direct a utility to impose a surcharge on utility customer

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bills to provide cost recovery; requiring the commission

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to adopt rules providing for the interconnection of

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customer-owned generation; authorizing the commission to

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direct utilities to adopt rate structures based on energy

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consumption; limiting the commission's regulation of

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onsite renewable resources; amending ss. 196.175 and

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220.192, F.S.; conforming provisions to changes made by

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the act;

3/18/2008  6:02:00 PM     15-05234-08