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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. The Legislature finds that it is in the public

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interest to promote alternative and renewable energy technologies

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in this state through the creation of a procurement of solar

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photovoltaic systems.

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

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     (a) "Solar PV energy" means a person or entity who

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generates electricity from a solar photovoltaic energy source

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that provides electricity to a customer for the customer's own

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use or provides electricity to the electrical distribution system

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of the state without using the federally regulated interstate

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electrical transmission system.

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     (b) "MW" means one Megawatt of photovoltaic generating

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systems measured in direct current capacity.

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     (c) "MWh" means one megawatt-hour of production from a one

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MW photovoltaic generating system measured in standard utility

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quality alternating current energy.

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     (2) A solar PV energy standard is created and the Public

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Service Commission shall implement such standard requiring retail

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electricity utilities to acquire solar PV energy as follows:

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     (a) In 2009, 14 MW;

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     (b) In 2010, 19 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (c) In 2011, 25 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (d) In 2012, 34 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (e) In 2013, 45 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (f) In 2014, 60 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (g) In 2015, 81 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (h) In 2016, 110 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (i) In 2017, 145 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (j) In 2018, 195 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (k) In 2019, 260 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (l) In 2020, 350 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (m) In 2021, 470 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (n) In 2022, 630 MW in addition to the Solar PV Energy

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acquired in the previous year;

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     (o) In 2023, 843 MW in addition to the Solar PV Energy

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acquired in the previous year; and

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     (p) In 2024, 1120 MW in addition to the Solar PV Energy

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acquired in the previous year.

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     (3) The commission shall establish by rulemaking within 120

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days of the passage of this legislation the method by which each

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utility shall procure its proportion of the requirements in

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subsection (2), including contract terms, the length of contract,

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any exchanges of solar PV energy among and between utilities, and

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any other rules necessary to implement the requirements in

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subsection (2) and to promote a competitive market in solar PV

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energy.

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     (4) The commission shall make a determination as to the

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maximum rate, which shall be the dollar amount per MWh, a utility

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must pay in a given year for solar PV energy. The maximum rate

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shall be set based on a 12-year schedule of purchasing full

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energy production from any solar PV plant by a utility. In making

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its determination, the commission shall solicit input from solar

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industry stakeholders as to the full cost to construct solar PV

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projects and a reasonable return on investment required to make

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the installations economical based on the maximum rate over the

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12-year schedule.

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     (5) The commission shall adopt rules to ensure that each

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utility complies with the requirements in subsection (2). In any

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year, the total costs may not be greater than 1 percent of the

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annual electricity sales revenue for an electric company. If the

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utility demonstrates to the commission that full compliance was

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not achieved because the cost of renewable energy was too high,

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or the supply of renewable energy was not adequate to satisfy the

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demand for such energy, the commission shall excuse full

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compliance.

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     (6) In 2010 and every 2 years thereafter, the commission

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shall make a determination as to whether costs of solar PV energy

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are declining at a rate that may be reasonably anticipated to

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result in parity with retail electricity prices in Florida in

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2025. Notwithstanding the provisions in subsection (5), if the

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commission determines solar PV energy will not be cost-

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competitive, it may relieve utilities of any obligation to

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procure additional solar PV energy not already procured until

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such time as there is a demonstration satisfactory to the

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commission that solar PV energy will be cost-competitive in 2025

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or earlier, at which time the commission shall reinstitute the

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requirements to procure solar PV energy as set forth in

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subsection (2). The commission shall establish by rule the method

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by which an analysis will be conducted to determine the cost-

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effectiveness of solar PV energy with retail electricity prices

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in the state in 2025. In designing the method, the commission

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shall accept and consider input and comments from manufacturers

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and installers of solar PV energy systems as well as industry

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experts and the public.

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     (7) The commission shall establish by rule any requirements

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necessary to:

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     (a) Ensure participation from each of following customer

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segments: large commercial, small commercial, residential, low

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income, and multifamily. The commission shall develop procedures,

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forms, eligibility criteria, and all other requirements in a

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manner that is clear, simple, and straightforward in order to

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minimize the time and effort required for participation of

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homeowners and small businesses in the renewable portfolio

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requirements.

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     (b) Provide a contract term of not less than 15 years for

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the purchase of solar PV energy between an owner of a solar PV

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energy generator and a utility.

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     (c) For solar PV energy generating systems greater than 0.5

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kW(dc) to and including 10 kW(dc) that become operational on or

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after January 1, 2009, in addition to the schedule presented in

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subsection (2), have a utility offer to make a one-time upfront

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payment. The commission shall determine the payment level and set

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the payment level to decline each year through 2024 and not to

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exceed 20 percent of the total amount expended in any year on

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solar PV energy.

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     (8) 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 MWh plus administrative costs not exceeding 10

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percent of the total costs to purchase credits.

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     (9) The commission shall direct utilities to adopt rate

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structures predominantly or completely based on energy

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consumption that encourages the use of renewable generation by

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customers.

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     (10) Generation of solar PV energy from an on-site source

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provided to a single customer at that site shall not be

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considered electricity sales for the purposes of rate or other

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commission rule other than for the purpose of complying with the

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requirements of subsection (2). An on-site source may be located

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on a property contiguous to the customer. Solar PV energy

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generated on the customer's side of the utility revenue meter and

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used to offset the customer's own electricity usage qualifies for

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the MW requirements in subsection (2), provided the utility has

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provided some incentive to the customer to install the Solar PV

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Energy system.

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     Section 27.  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 a solar PV energy renewable

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energy source renewable energy source device is installed and

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operated shall be entitled to an exemption in the amount of not

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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 28.  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 solar PV

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energy 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)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 legislative intent relating to solar

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photovoltaic systems; providing definitions; requiring the

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Public Service Commission to implement a Solar PV Energy

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standard that requires utilities to acquire certain MWs

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per year for certain years; requiring the commission to

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develop and adopt rules within a certain period; requiring

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the commission to determine the costs of solar PV energy

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on a periodic basis; authorizing the commission to impose

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a surcharge on utility customer bills to provide cost

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recovery; requiring the commission to adopt rules

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providing for the interconnection of customer-owned

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generation; authorizing the commission to direct utilities

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to adopt rate structures based on energy consumption;

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limiting the commission's regulation of onsite renewable

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resources; amending ss. 196.175 and 220.192, F.S.;

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conforming provisions to changes made by the act;

3/18/2008  6:08:00 PM     15-05232-08