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A bill to be entitled

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An act relating to alternative energy; creating the

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distributed alternative energy generation development

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initiative; providing legislative findings and intent;

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providing definitions; authorizing certain state agencies,

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universities, and private sector entities to develop and

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operate distributed alternative energy generation pilot

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projects; requiring electric utilities to provide pilot

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projects with interconnection, net metering, transmission

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and distribution, and backup and standby power services;

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specifying requirements and fees for such services;

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providing for pilot projects to receive credit for certain

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energy generation; requiring the Public Service Commission

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and the Department of Environmental Protection to adopt

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specified rules; requiring the department to submit an

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annual report to the Governor and the Legislature;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. Distributed alternative energy generation and

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development initiative.--

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     (1) LEGISLATIVE FINDINGS AND INTENT.--The Legislature finds

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that the state has a vital interest in the development of

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distributed alternative energy generation and that the

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development of distributed alternative energy generation can be

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encouraged through limited scope pilot projects between state

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agencies, the private sector, and certain qualifying public

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research universities. It is the intent of the Legislature to

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promote the development of distributed alternative energy

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generation by encouraging innovation and investment in

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distributed alternative energy generation and pilot projects and

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allowing a transitional period in which new and emerging

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technologies are subject to reduced or different regulatory

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constraints than those applicable to traditional energy

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suppliers.

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     (2) DEFINITIONS.--As used in this section, the term:

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     (a) "Alternative energy" means alternatives to coal and oil

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as energy sources used to produce electrical power or efficiency

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and conservation methods that can be used to minimize the need

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for energy sources used to produce electrical power, that uses

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one or more of the following fuels, energy sources, or energy-

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saving mechanisms: solar water heat, solar space heat, solar

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thermal electric, process heat, photovoltaics, landfill gas,

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wind, biomass, hydroelectric, ocean, geothermal, groundwater heat

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exchange, carbon dioxide-free hydrogen, solid waste, combined

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heat and power cogeneration, coal gasification, anaerobic

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digestion, distributed generation technologies, combined cycle

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natural gas, nuclear, biofuels such as biokerosene and ethanol,

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demand side management, light emitting diode and natural

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lighting, and other energy-efficient resources.

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     (b) "Distributed alternative energy generation pilot

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project" or "pilot project" means a collaboration, partnership,

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or joint venture between a state agency, a research university,

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and a private sector entity to build and operate a distributed

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alternative energy generation facility to produce energy for the

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use of the pilot project participants and the electric utility

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serving the pilot project participants.

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     (c) "Behind-the-meter" means the interconnection of an

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energy generating unit is located behind a retail customer meter

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on the customer side and requires no additional electric utility-

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owned transmission or distribution facilities for the delivery of

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energy.

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     (d) "Electric utility" means any municipal electric

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utility, investor-owned electric utility, or rural electric

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cooperative which owns, maintains, or operates an electric

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generation, transmission, or distribution system within the

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state.

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     (e) "Research university" means a member of the State

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University System that has been designated as a doctoral/research

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university-extensive by the Carnegie Foundation and is served by

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a municipal electric utility.

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     (3) ALTERNATIVE ENERGY PILOT PROJECTS.--State agencies and

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research universities that are located in the same community and

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served by an electric utility are authorized to enter into

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partnerships and other similar enterprises with private sector

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entities to develop and operate distributed alternative energy

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generation pilot projects. The following provisions shall apply

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to such pilot projects:

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     (a) Interconnection service.--An electric utility serving

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the community in which a pilot project is located shall provide

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interconnection service to the pilot project. Interconnection

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services shall be offered based upon the standards developed by

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the Institute of Electrical and Electronic Engineers and

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incorporated in IEEE Standard 1547 for Interconnecting

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Distributed Resources with Electric Power Systems, as they may be

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amended, at a fee not to exceed the electric utility's

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incremental cost of providing such service. All projects

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classified as IEEE Standard 1547.3 Distributed Resource Class 1

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power shall be behind-the-meter.

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     (b) Net metering service.--An electric utility serving the

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community in which a pilot project is located shall provide net

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metering service to the pilot project. The electric utility shall

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provide to the pilot project meters that subtract the amount of

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energy generated from the amount of energy consumed. The pilot

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project shall receive credit at the full retail rate for energy

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generated by the pilot project. If the pilot project generates

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more energy than it consumes during a billing cycle, the serving

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municipal utility shall pay the pilot project for the excess

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generation at the full avoided cost under s. 366.051.

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     (c) Transmission and distribution service.--An electric

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utility serving the community in which a pilot project is located

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shall provide transmission and distribution service to enable the

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pilot project to transmit energy to another participating pilot

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project facility at a fee not to exceed the serving municipal

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electric utility's incremental cost of providing such service.

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     (d) Backup and standby power service.--If a behind-the-

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meter arrangement is not used, the electric utility serving the

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community in which a pilot project is located shall provide

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backup and standby power service to the pilot project at a fee

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not to exceed the electric utility's commercial rate for such

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service.

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     (4) RULES.--The Public Service Commission and the

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Department of Environmental Protection shall adopt rules to

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implement and administer this section, including a reporting

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requirement for pilot project participants.

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     (5) REPORT.--The Department of Environmental Protection

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shall submit an annual report of the activities of the pilot

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project to the Governor, the President of the Senate, and the

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Speaker of the House of Representatives by July 1 of each year,

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beginning on July 1, 2009.

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     Section 2.  This act shall take effect July 1, 2008.