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The Committee on General Government Appropriations (Lawson)

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recommended the following amendment:

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     Senate Amendment (with title amendments)

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     Between line(s) 2146 and 2147

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and insert:

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          Section 31.  Section 366.92, Florida Statutes, is

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amended to read:

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     366.92  Florida renewable energy policy.--

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     (1)  It is the intent of the Legislature to promote the

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development of renewable energy; protect the economic viability

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of Florida's existing renewable energy facilities; diversify the

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types of fuel used to generate electricity in Florida; lessen

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Florida's dependence on natural gas and fuel oil for the

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production of electricity; minimize the volatility of fuel costs;

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encourage investment within the state; improve environmental

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conditions; and, at the same time, minimize the costs of power

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supply to electric utilities and their customers.

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     (2)  For the purposes of this section, "Florida renewable

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energy resources" shall mean renewable energy, as defined in s.

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377.803, that is produced in Florida.

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

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     (a) "Renewable Energy Credit" or "REC" shall mean a product

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that represents the unbundled, separable, renewable attribute of

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renewable energy produced in Florida and is equivalent to one

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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 a public utility as defined in s.

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366.02(1).

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     (c) "Renewable energy" shall mean renewable energy, as

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defined 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 that shall be supplied by

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renewable energy produced in Florida.

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     (4) RENEWABLE PORTFOLIO STANDARD.--

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     (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, either directly, by procuring, or

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through renewable energy credits. In developing the RPS rule,

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the commission shall consult the Florida Department of

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Environmental Protection and the Florida Energy and Climate

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Commission. The rule will not be implemented until ratified by

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the Legislature. The commission shall present a draft rule for

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legislative consideration by February 1, 2009.

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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 or procurement of renewable power or

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through the purchase of renewable energy credits. The commission

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shall have rulemaking authority for providing annual cost

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recovery and incentive-based adjustments to authorized rates of

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return on common equity to providers to incentivize renewable

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

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ratification of the rules developed pursuant to subsection (4),

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the commission is authorized to approve projects and power sales

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agreements with renewable power producers, and the sale of

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renewable energy credits which are needed to comply with the RPS.

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In the event of any conflict, this section shall supersede s.

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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 may provide added weight to

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energy provided by wind and solar photovoltaic over other forms

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of renewable energy whether directly supplied or 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 not be 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 final

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adoption of the commission's RPS rule, each provider shall submit

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a report to the commission describing the steps that have been

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

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the future to add renewable energy to the provider's energy

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supply portfolio. The report shall state whether the provider

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was in compliance with the RPS during the previous year and how

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it will comply with the RPS in the upcoming year.

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     (5) In order to demonstrate the feasibility and viability

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of clean energy systems, the commission shall provide for full

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cost 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 which are zero greenhouse gas emitting at the

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point of generation, up to a total of 110 megawatt statewide, for

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which the provider has secured necessary land, zoning permits and

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transmission rights within the state. Such costs shall be deemed

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reasonable and prudent for purposes of cost recovery so long as

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the provider has used reasonable and customary industry practices

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in the design, procurement and construction of the project in a

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cost-effective manner appropriate to the location of the

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facility. The provider shall report to the commission as part of

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the cost recovery proceedings the construction costs, in-service

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costs, operating and maintenance costs, and the hourly energy

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production of the renewable energy project and any other

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information deemed relevant by the commission. Any provider

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constructing a clean energy facility pursuant to this section

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shall file for cost recovery no later 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 once

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every 5 years.

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

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implement the provisions of this section.

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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) 196 after "emissions;"

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insert:

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amending s. 366.92, F.S.; providing definitions; requiring

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renewable portfolio standard; providing that the rule must

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be ratified by the Legislature; providing that the rule

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must be submitted for legislative approval by February 1,

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2009; specifies criteria for the rule development;

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allowing for full cost recovery of certain reasonable and

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prudent costs prior to the ratification of the rule;

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requiring each municipal electric utility and rural

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electric cooperative to develop standards for the use of

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renewable energy resources and energy conservation

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measures and submit a report to the Public Service

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Commission that identifies such standards;

4/9/2008  12:46:00 PM     EP.GA.07106