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Senator Saunders moved the following amendment:

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     Senate Amendment

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     Delete line(s) 2044-2195

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and insert:

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     Section 30.  Section 366.82, Florida Statutes, is amended to

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read:

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     366.82  Definition; goals; plans; programs; annual reports;

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energy audits.--

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     (1) For the purposes of ss. 366.80-366.85 and 403.519:,

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     (a) "Utility" means any person or entity of whatever form

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which provides electricity or natural gas at retail to the

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public, specifically including municipalities or

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instrumentalities thereof and cooperatives organized under the

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Rural Electric Cooperative Law and specifically excluding any

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municipality or instrumentality thereof, any cooperative

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organized under the Rural Electric Cooperative Law, or any other

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person or entity providing natural gas at retail to the public

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whose annual sales volume is less than 100 million therms or any

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municipality or instrumentality thereof and any cooperative

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organized under the Rural Electric Cooperative Law providing

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electricity at retail to the public whose annual sales as of July

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1, 1993, to end-use customers is less than 2,000 gigawatt hours.

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     (b) "Demand-side renewable energy" means a system located

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on a customer's premises generating thermal or electric energy

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using Florida renewable energy resources and primarily intended

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to offset all or part of the customer's electricity requirements

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provided such system does not exceed 2 megawatts.

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     (2)  The commission shall adopt appropriate goals for

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increasing the efficiency of energy consumption and increasing

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the development of demand-side renewable energy systems

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cogeneration, specifically including goals designed to increase

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the conservation of expensive resources, such as petroleum fuels,

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to reduce and control the growth rates of electric consumption,

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and to reduce the growth rates of weather-sensitive peak demand,

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and to encourage development of demand-side renewable energy

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resources. The commission may allow efficiency investments across

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generation, transmission, and distribution as well as

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efficiencies within the user base. The Executive Office of the

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Governor shall be a party in the proceedings to adopt goals. The

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commission may change the goals for reasonable cause. The time

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period to review the goals, however, shall not exceed 5 years.

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After the programs and plans to meet those goals are completed,

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the commission shall determine what further goals, programs, or

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plans are warranted and, if so, shall adopt them.

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     (3) In developing the goals, the commission shall evaluate

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the full technical potential of all available demand-side and

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supply-side conservation and efficiency measures, including

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demand-side renewable energy systems. In establishing the goals,

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the commission shall take into consideration:

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     (a) The costs and benefits to customers participating in

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the measure.

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     (b) The costs and benefits to the general body of

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ratepayers as a whole, including utility incentives and

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participant contributions.

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     (c) The need for incentives to promote both customer-owned

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and utility-owned energy efficiency and demand-side renewable

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energy systems.

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     (d) The costs imposed by state and federal regulations on

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the emission of greenhouse gases.

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     (4) Subject to specific appropriation, the commission may

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expend up to $250,000 from the Florida Public Service Regulatory

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Trust Fund to obtain needed technical consulting assistance.

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     (5) The Florida Energy and Climate Commission shall be a

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party in the proceedings to adopt goals and shall file with the

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commission comments on the proposed goals, including, but not

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limited to:

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     (a) An evaluation of utility load forecasts, including an

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assessment of alternative supply-side and demand-side resource

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options.

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     (b) An analysis of various policy options that can be

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implemented to achieve a least-cost strategy, including

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nonutility programs targeted at reducing and controlling the per

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capita use of electricity in the state.

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     (c) An analysis of the impact of state and local building

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codes and appliance efficiency standards on the need for utility-

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sponsored conservation and energy efficiency measures and

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programs.

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     (6) The commission may change the goals for reasonable

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cause. The time period to review the goals, however, shall not

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exceed 5 years. After the programs and plans to meet those goals

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are completed, the commission shall determine what further goals,

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programs, or plans are warranted and adopt them.

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     (7)(3) Following adoption of goals pursuant to subsections

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subsection (2) and (3), the commission shall require each utility

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to develop plans and programs to meet the overall goals within

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its service area. The commission may require modifications or

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additions to a utility's plans and programs at any time it is in

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the public interest consistent with this act. In approving plans

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and programs for cost recovery, the commission shall have the

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flexibility to modify or deny plans or programs that would have

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an undue impact on the costs passed on to customers. If any plan

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or program includes loans, collection of loans, or similar

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banking functions by a utility and the plan is approved by the

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commission, the utility shall perform such functions,

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notwithstanding any other provision of the law. The commission

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may pledge up to $5 million of the Florida Public Service

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Regulatory Trust Fund to guarantee such loans. However, no

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utility shall be required to loan its funds for the purpose of

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purchasing or otherwise acquiring conservation measures or

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devices, but nothing herein shall prohibit or impair the

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administration or implementation of a utility plan as submitted

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by a utility and approved by the commission under this

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subsection. If the commission disapproves a plan, it shall

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specify the reasons for disapproval, and the utility whose plan

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is disapproved shall resubmit its modified plan within 30 days.

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Prior approval by the commission shall be required to modify or

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discontinue a plan, or part thereof, which has been approved. If

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any utility has not implemented its programs and is not

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substantially in compliance with the provisions of its approved

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plan at any time, the commission shall adopt programs required

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for that utility to achieve the overall goals. Utility programs

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may include variations in rate design, load control,

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cogeneration, residential energy conservation subsidy, or any

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other measure within the jurisdiction of the commission which the

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commission finds likely to be effective; this provision shall not

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be construed to preclude these measures in any plan or program.

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     (8) The commission may authorize financial rewards for

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those utilities over which it has rate-setting authority that

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exceed their goals and may authorize financial penalties for

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those utilities that fail to meet their goals, including, but not

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limited to, the sharing of generation, transmission, and

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distribution cost savings associated with conservation, energy

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efficiency, and demand-side renewable energy systems additions.

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     (9) The commission is authorized to allow an investor-owned

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electric utility an additional return on equity of up to 50 basis

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points for exceeding 20 percent of their annual load-growth

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through energy efficiency and conservation measures. The

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additional return on equity shall be established by the

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commission through a limited proceeding.

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     (10)(4) The commission shall require periodic reports from

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each utility and shall provide the Legislature and the Governor

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with an annual report by March 1 of the goals it has adopted and

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its progress toward meeting those goals. The commission shall

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also consider the performance of each utility pursuant to ss.

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366.80-366.85 and 403.519 when establishing rates for those

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utilities over which the commission has ratesetting authority.

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     (11)(5) The commission shall require each utility to offer,

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or to contract to offer, energy audits to its residential

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customers. This requirement need not be uniform, but may be based

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on such factors as level of usage, geographic location, or any

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other reasonable criterion, so long as all eligible customers are

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notified. The commission may extend this requirement to some or

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all commercial customers. The commission shall set the charge for

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audits by rule, not to exceed the actual cost, and may describe

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by rule the general form and content of an audit. In the event

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one utility contracts with another utility to perform audits for

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it, the utility for which the audits are performed shall pay the

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contracting utility the reasonable cost of performing the audits.

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Each utility over which the commission has ratesetting authority

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shall estimate its costs and revenues for audits, conservation

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programs, and implementation of its plan for the immediately

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following 6-month period. Reasonable and prudent unreimbursed

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costs projected to be incurred, or any portion of such costs, may

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be added to the rates which would otherwise be charged by a

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utility upon approval by the commission, provided that the

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commission shall not allow the recovery of the cost of any

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company image-enhancing advertising or of any advertising not

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directly related to an approved conservation program. Following

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each 6-month period, each utility shall report the actual results

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for that period to the commission, and the difference, if any,

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between actual and projected results shall be taken into account

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in succeeding periods. The state plan as submitted for

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consideration under the National Energy Conservation Policy Act

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shall not be in conflict with any state law or regulation.

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     (12)(6)(a) Notwithstanding the provisions of s. 377.703,

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the commission shall be the responsible state agency for

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performing, coordinating, implementing, or administering the

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functions of the state plan submitted for consideration under the

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National Energy Conservation Policy Act and any acts amendatory

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thereof or supplemental thereto and for performing, coordinating,

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implementing, or administering the functions of any future

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federal program delegated to the state which relates to

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consumption, utilization, or conservation of electricity or

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natural gas; and the commission shall have exclusive

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responsibility for preparing all reports, information, analyses,

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recommendations, and materials related to consumption,

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utilization, or conservation of electrical energy which are

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required or authorized by s. 377.703.

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     (b) The Executive Office of the Governor shall be a party

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in the proceedings to adopt goals and shall file with the

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commission comments on the proposed goals including, but not

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limited to:

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     1. An evaluation of utility load forecasts, including an

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assessment of alternative supply and demand side resource

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options.

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     2. An analysis of various policy options which can be

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implemented to achieve a least-cost strategy.

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     (13)(7) The commission shall establish all minimum

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requirements for energy auditors used by each utility. The

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commission is authorized to contract with any public agency or

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other person to provide any training, testing, evaluation, or

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other step necessary to fulfill the provisions of this

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subsection.

4/29/2008  6:39:00 PM     EP.37.09069