Florida Senate - 2009                             CS for SB 1154
       
       
       
       By the Committee on Communications, Energy, and Public
       Utilities; and Senator King
       
       
       
       579-03886-09                                          20091154c1
       
    1                        A bill to be entitled                      
    2         An act relating to energy; amending s. 366.92, F.S.;
    3         revising definitions and providing additional
    4         definitions; requiring that electric utilities meet or
    5         exceed specified standards for the production or
    6         purchase of clean energy; establishing a schedule for
    7         compliance; providing a penalty if a utility fails to
    8         meet the standards; authorizing the Public Service
    9         Commission to excuse certain electric utilities from
   10         compliance under specified conditions; requiring the
   11         commission to adopt rules; requiring an annual report
   12         to the Legislature; amending s. 366.93, F.S.;
   13         authorizing the Public Service Commission to allow a
   14         utility to recover the costs of converting an existing
   15         fossil fuel plant to a biomass plant under certain
   16         conditions; encouraging utilities to pursue joint
   17         ownership of nuclear power plants; requiring that
   18         certain costs be shared; creating s. 366.99, F.S.;
   19         providing a short title; providing legislative
   20         findings with respect to the need to reduce greenhouse
   21         gas emissions through the direct, end-use of natural
   22         gas; defining terms; authorizing a utility to
   23         establish a surcharge for the purpose of constructing
   24         natural gas installations in areas that lack natural
   25         gas service; providing limitations on the surcharge;
   26         providing procedures for determining the surcharge and
   27         making filings to the commission; requiring the
   28         commission to conduct limited proceedings to determine
   29         the amount of the surcharge; providing for future
   30         expiration of provisions authorizing the surcharge;
   31         amending s. 377.6015, F.S.; providing that terms for
   32         members of the Florida Energy and Climate Commission
   33         begin and end on specified dates; amending s. 525.09,
   34         F.S.; imposing certain fees, to be used for carbon
   35         reduction, on alternative fuel containing alcohol and
   36         imposing an additional charge on gasoline, diesel,
   37         kerosene used for certain purposes, and #1 fuel oil
   38         for sale or use in the state; providing requirements
   39         for remitting the fee; amending s. 525.10, F.S.;
   40         providing for the deposit of carbon-reduction fees
   41         into the Florida Renewable Energy Trust Fund and the
   42         General Revenue Fund; requiring the Florida Energy and
   43         Climate Commission to prepare a report that identifies
   44         ways in which to increase the energy-efficiency
   45         practices of low-income households; requiring the
   46         report to include certain determinations and
   47         recommendations; requiring that the report be
   48         submitted to the Legislature by a specified date;
   49         providing an effective date.
   50  
   51  Be It Enacted by the Legislature of the State of Florida:
   52  
   53         Section 1. Section 366.92, Florida Statutes, is amended to
   54  read:
   55         366.92 Florida clean renewable energy policy.—
   56         (1) It is the intent of the Legislature to promote the
   57  development of clean and renewable energy; protect the economic
   58  viability of Florida’s existing renewable energy facilities;
   59  diversify the types of fuel used to generate electricity in
   60  Florida; lessen Florida’s dependence on natural gas and fuel oil
   61  for the production of electricity; minimize the volatility of
   62  fuel costs; encourage investment within the state; improve
   63  environmental conditions; and, at the same time, minimize the
   64  costs of power supply to electric utilities and their customers.
   65         (2) As used in this section, the term:
   66         (a)“Class I clean energy source” means Florida clean
   67  energy resources derived from wind or solar photovoltaic
   68  systems.
   69         (b)“Class II clean energy source” means clean energy
   70  derived from Florida clean energy resources other than class I
   71  clean energy sources or class III clean energy sources.
   72         (c)“Class III clean energy source” means clean energy
   73  derived from nuclear energy or integrated gasification combined
   74  cycle for which carbon capture and sequestration plans have been
   75  approved by the Department of Environmental Protection.
   76         (d)“Clean energy” means electrical energy produced from a
   77  method that uses one or more of the following fuels or energy
   78  sources: nuclear energy placed in commercial service after July
   79  1, 2009, integrated gasification combined cycle for which carbon
   80  capture and sequestration plans have been approved by the
   81  Department of Environmental Protection, hydrogen produced from
   82  sources other than fossil fuels, biomass, solar photovoltaic,
   83  geothermal energy, wind energy, ocean energy, or hydroelectric
   84  power. The term includes waste heat from sulfuric acid
   85  manufacturing operations.
   86         (e)(a) “Florida clean renewable energy resources” means
   87  clean renewable energy, as defined in s. 377.803, that is
   88  produced in Florida.
   89         (f)(b) “Provider” means a “utility” as defined in s.
   90  366.8255(1)(a).
   91         (c)“Renewable energy” means renewable energy as defined in
   92  s. 366.91(2)(d).
   93         (g)(d) “Clean Renewable energy credit” or “REC” means a
   94  product that represents the unbundled, separable, clean
   95  renewable attribute of clean renewable energy produced in
   96  Florida and is equivalent to 1 megawatt-hour of electricity
   97  generated by a source of clean renewable energy located in
   98  Florida.
   99         (h)(e) “Clean Renewable portfolio standard” or “RPS” means
  100  the minimum percentage of total annual retail electricity sales
  101  by an electric utility a provider to consumers in Florida which
  102  is that shall be supplied by clean renewable energy or through
  103  the purchase of clean energy credits from clean energy produced
  104  in Florida.
  105         (3)(a)Each electric utility must meet or exceed the
  106  following clean portfolio standards through the production of
  107  clean energy or the purchase of clean energy credits:
  108         1.By January 1, 2013, 7 percent of the previous years’
  109  retail electricity sales;
  110         2.By January 1, 2016, 12 percent of the previous years’
  111  retail electricity sales;
  112         3.By January 1, 2019, 18 percent of the previous years’
  113  retail electricity sales; and
  114         4.By January 1, 2021, 20 percent of the previous years’
  115  retail electricity sales.
  116  
  117  No more than 25 percent of the amount of the clean portfolio
  118  standard requirement for each year may be from Class III clean
  119  energy sources. For the production or procurement of Class III
  120  clean energy, a Florida utility that is a member of the
  121  Southeastern Electric Reliability Council may co-own or purchase
  122  energy from a Class III clean energy source located in another
  123  state and owned by an affiliate in a holding company with multi
  124  state dispatch.
  125         (b)Except as otherwise provided in this section, an
  126  investor-owned electric utility that fails to meet or exceed its
  127  clean portfolio standard is subject to a penalty pursuant to s.
  128  366.095 for each day such failure continues, and the penalty may
  129  not be recovered from the utility’s ratepayers.
  130         (c)The commission shall excuse an investor-owned electric
  131  utility from compliance with the clean portfolio standard if:
  132         1.The supply of clean energy and clean energy credits is
  133  not adequate to satisfy the clean portfolio standard; or
  134         2.The cost of producing clean energy or purchasing clean
  135  energy credits is prohibitive in that the total costs of
  136  compliance with the clean portfolio standard exceeds 2 percent
  137  of the investor-owned electric utility’s total annual revenue
  138  from retail sales of electricity.
  139         (d)The cost of compliance with the clean portfolio
  140  standards includes:
  141         1.The costs associated with the purchase of clean energy
  142  credits;
  143         2.The costs paid by the utility which are associated with
  144  the clean energy credit market; and
  145         3.The utility’s costs of its self-build Florida clean
  146  energy resource which exceed the costs to the utility of the
  147  generation source it would have otherwise built or the energy or
  148  capacity, or both, it would have purchased from another source.
  149  
  150  Expenses for Class III clean energy sources may not be included
  151  in calculating the cost of compliance.
  152         (e)The cost of compliance must be allocated separately for
  153  Class I and Class II clean energy sources and, for each class,
  154  the total cost of compliance is prohibitive if the costs exceed
  155  1 percent of the investor-owned electric utility’s total annual
  156  revenue from retail sales of electricity.
  157         (f)Each investor-owned electric utility seeking to
  158  construct a Florida clean energy project must select the
  159  technology and project most likely to be cost-effective for the
  160  general body of ratepayers for that class of clean energy
  161  technology. In determining the most cost-effective construction
  162  option and in purchasing clean energy credits, an investor-owned
  163  utility shall seek the least-cost alternatives within each class
  164  of clean energy sources. The method of determining the least
  165  cost alternative shall be determined by the commission and may
  166  include requests for proposals, auctions, or other methods.
  167         (g)A clean energy credit remains the property of the owner
  168  of the clean energy resource from which it was derived until it
  169  is sold or transferred.
  170         (4)(3) The commission shall adopt rules providing
  171  requirements for:
  172         (a)Implementing the clean a renewable portfolio standard.
  173         (b)Determining the method of establishing least-cost
  174  options for the construction of facilities or the purchase of
  175  clean energy credits.
  176         (c)Determining what entities are eligible to produce clean
  177  energy credits.
  178         (d)Determining the method of recovery of the costs of
  179  compliance with the clean portfolio standard, with such costs
  180  appearing as a separate line item on each customer’s bill.
  181         (e)Filing reports concerning compliance by utilities with
  182  the clean portfolio standard.
  183         (f)Creating a clean energy credit market requiring each
  184  provider to supply renewable energy to its customers directly,
  185  by procuring, or through renewable energy credits. In developing
  186  the RPS rule, the commission shall consult the Department of
  187  Environmental Protection and the Florida Energy and Climate
  188  Commission. The rule shall not be implemented until ratified by
  189  the Legislature. The commission shall present a draft rule for
  190  legislative consideration by February 1, 2009.
  191         (a)In developing the rule, the commission shall evaluate
  192  the current and forecasted levelized cost in cents per kilowatt
  193  hour through 2020 and current and forecasted installed capacity
  194  in kilowatts for each renewable energy generation method through
  195  2020.
  196         (b)The commission’s rule:
  197         1.Shall include methods of managing the cost of compliance
  198  with the renewable portfolio standard, whether through direct
  199  supply or procurement of renewable power or through the purchase
  200  of renewable energy credits. The commission shall have
  201  rulemaking authority for providing annual cost recovery and
  202  incentive-based adjustments to authorized rates of return on
  203  common equity to providers to incentivize renewable energy.
  204  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  205  the rules developed pursuant to this subsection, the commission
  206  may approve projects and power sales agreements with renewable
  207  power producers and the sale of renewable energy credits needed
  208  to comply with the renewable portfolio standard. In the event of
  209  any conflict, this subparagraph shall supersede s. 366.91(3) and
  210  (4). However, nothing in this section shall alter the obligation
  211  of each public utility to continuously offer a purchase contract
  212  to producers of renewable energy.
  213         2.Shall provide for appropriate compliance measures and
  214  the conditions under which noncompliance shall be excused due to
  215  a determination by the commission that the supply of renewable
  216  energy or renewable energy credits was not adequate to satisfy
  217  the demand for such energy or that the cost of securing
  218  renewable energy or renewable energy credits was cost
  219  prohibitive.
  220         3.May provide added weight to energy provided by wind and
  221  solar photovoltaic over other forms of renewable energy, whether
  222  directly supplied or procured or indirectly obtained through the
  223  purchase of renewable energy credits.
  224         4.Shall determine an appropriate period of time for which
  225  renewable energy credits may be used for purposes of compliance
  226  with the renewable portfolio standard.
  227         5.Shall provide for monitoring of compliance with and
  228  enforcement of the requirements of this section.
  229         6.Shall ensure that energy credited toward compliance with
  230  the requirements of this section is not credited toward any
  231  other purpose.
  232         7.Shall include procedures to track and account for
  233  renewable energy credits, including ownership of renewable
  234  energy credits that are derived from a customer-owned renewable
  235  energy facility as a result of any action by a customer of an
  236  electric power supplier that is independent of a program
  237  sponsored by the electric power supplier.
  238         8.Shall provide for the conditions and options for the
  239  repeal or alteration of the rule in the event that new
  240  provisions of federal law supplant or conflict with the rule.
  241         (c)Beginning on April 1 of the year following final
  242  adoption of the commission’s renewable portfolio standard rule,
  243  each provider shall submit a report to the commission describing
  244  the steps that have been taken in the previous year and the
  245  steps that will be taken in the future to add renewable energy
  246  to the provider’s energy supply portfolio. The report shall
  247  state whether the provider was in compliance with the renewable
  248  portfolio standard during the previous year and how it will
  249  comply with the renewable portfolio standard in the upcoming
  250  year.
  251         (5)By February 1, 2010, and each year thereafter, the
  252  commission shall submit a report to the Legislature detailing
  253  further rulemaking activities, developments in the production of
  254  clean energy, how much and what types of clean energy are
  255  available in various regions of the state and at what cost, and
  256  any impediments to further increases in the production of clean
  257  energy in this state.
  258         (6)(4) In order to demonstrate the feasibility and
  259  viability of clean energy systems, the commission shall provide
  260  for full cost recovery under the environmental cost-recovery
  261  clause of all reasonable and prudent costs incurred by a
  262  provider for renewable energy projects that are zero greenhouse
  263  gas emitting at the point of generation, up to a total of 110
  264  megawatts statewide, and for which the provider has secured
  265  necessary land, zoning permits, and transmission rights within
  266  the state. Such costs shall be deemed reasonable and prudent for
  267  purposes of cost recovery so long as the provider has used
  268  reasonable and customary industry practices in the design,
  269  procurement, and construction of the project in a cost-effective
  270  manner appropriate to the location of the facility. The provider
  271  shall report to the commission as part of the cost-recovery
  272  proceedings the construction costs, in-service costs, operating
  273  and maintenance costs, hourly energy production of the renewable
  274  energy project, and any other information deemed relevant by the
  275  commission. Any provider constructing a clean energy facility
  276  pursuant to this section shall file for cost recovery no later
  277  than July 1, 2009.
  278         (7)(5) Each municipal electric utility and rural electric
  279  cooperative shall develop standards for the promotion,
  280  encouragement, and expansion of the use of renewable energy
  281  resources and energy conservation and efficiency measures. On or
  282  before April 1, 2009, and annually thereafter, each municipal
  283  electric utility and electric cooperative shall submit to the
  284  commission a report that identifies such standards.
  285         (8)(6)Nothing in This section does not shall be construed
  286  to impede or impair terms and conditions of existing contracts.
  287         (9)(7) The commission may adopt rules to administer and
  288  implement the provisions of this section.
  289         Section 2. Subsection (4) of section 366.93, Florida
  290  Statutes, is amended, and subsection (7) is added to that
  291  section, to read:
  292         366.93 Cost recovery for the siting, design, licensing, and
  293  construction of nuclear and integrated gasification combined
  294  cycle power plants.—
  295         (4) When the nuclear or integrated gasification combined
  296  cycle power plant is placed in commercial service, the utility
  297  shall be allowed to increase its base rate charges by the
  298  projected annual revenue requirements of the nuclear or
  299  integrated gasification combined cycle power plant based on the
  300  jurisdictional annual revenue requirements of the plant for the
  301  first 12 months of operation. The rate of return on capital
  302  investments shall be calculated using the utility’s rate of
  303  return last approved by the commission prior to the commercial
  304  inservice date of the nuclear or integrated gasification
  305  combined cycle power plant. If any existing generating plant is
  306  retired as a result of operation of the nuclear or integrated
  307  gasification combined cycle power plant, the commission shall
  308  allow for the recovery, through an increase in base rate
  309  charges, of the net book value of the retired plant over a
  310  period not to exceed 5 years or, if the commission determines
  311  that it would be more cost-effective to convert the existing
  312  generating plant to a biomass plant, allow for the recovery of
  313  the costs of conversion in base rate charges over a period that
  314  is determined by the commission.
  315         (7)In order to further promote the development of nuclear
  316  electrical generation and minimize the financial risk to any one
  317  utility associated with the construction of a nuclear power
  318  plant, electric utilities in this state are encouraged to pursue
  319  the joint ownership of nuclear power plants. Under such joint
  320  ownership agreements, the costs of siting, preconstruction, and
  321  construction shall be shared on a pro rata basis in proportion
  322  to the capacity and energy received.
  323         Section 3. Section 366.99, Florida Statutes, is created to
  324  read:
  325         366.99Natural gas delivery; surcharge for carbon
  326  reduction.—
  327         (1)This section may be cited as the “Natural Gas Act.”
  328         (2)(a)The Legislature finds that it is in the best
  329  interest of the state to improve the availability, reliability,
  330  and delivery of natural gas to consumers in the state.
  331         (b)The Legislature further finds that natural gas is a
  332  domestically produced fuel and that an increase in the direct,
  333  end-use of natural gas will reduce dependence on foreign sources
  334  of fuel and provide consumers in this state with a diversity of
  335  fuel options to meet their energy needs.
  336         (c)The Legislature further finds that natural gas is a
  337  clean-burning fuel and that increased efficiency in the direct,
  338  end-use of natural gas will have an immediate impact on this
  339  state’s goal of reducing greenhouse gas emissions and improving
  340  air quality.
  341         (d)The Legislature further finds that approximately 90
  342  percent of the natural gas produced is delivered to consumers as
  343  useful energy and, therefore, it is significantly more efficient
  344  to use natural gas in direct, end-use applications and thus
  345  reduce the overall demand for natural gas in this state.
  346         (e)It is the intent of the Legislature to promote the
  347  direct, retail end-use of natural gas in this state.
  348         (3)As used in this section, the term:
  349         (a)“CR rider” means a carbon reduction rider that is a
  350  cost-recovery clause, separate and distinct from a utility’s
  351  base rates, and that uses the same allocation methodology
  352  applicable to the utility’s recovery of costs recoverable
  353  pursuant to the Energy Conservation Cost Recovery Rule, rule 25
  354  17.015, Florida Administrative Code.
  355         (b)“CRR revenue requirement” means the pretax revenues
  356  equal to:
  357         1.The utility’s weighted average cost of capital allowed
  358  in the most recent rate proceeding multiplied by the 13-month
  359  average net book value of eligible installations, including
  360  recognition of accumulated depreciation associated with eligible
  361  installations;
  362         2.State, federal, and local income taxes applicable to
  363  income calculated pursuant to paragraph (7)(a);
  364         3.Ad valorem taxes; and
  365         4.Depreciation expenses on eligible installations.
  366         (c)“CRR revenues” means the revenues produced through CRR
  367  surcharges, exclusive of revenues from all other rates and
  368  charges.
  369         (d)“CRR surcharges” means the surcharges determined
  370  pursuant to the procedures and subject to the qualifications set
  371  forth in this section.
  372         (e)“Eligible installations” means utility plant
  373  investments that:
  374         1.Connect supply sources of natural gas to a distribution
  375  system that serves primarily residential customers;
  376         2.Are in service and used and useful in providing utility
  377  service;
  378         3.Were not included in the utility’s rate base for
  379  purposes of determining the utility’s base rate in the most
  380  recent general base-rate proceedings; and
  381         4.Consist of mains that are greater than or equal to 4
  382  inches in diameter or that are certified to operate at a maximum
  383  allowable operating pressure greater than 60 pounds per square
  384  inch gauge, together with associated valves, regulator stations,
  385  vaults, transmission line taps, and other pipeline system
  386  components.
  387         (f)“Natural gas utility” or “utility” means any natural
  388  gas distribution company as defined in s. 366.02.
  389         (4)Notwithstanding any provision in this chapter or rule
  390  to the contrary, the commission shall allow a utility that files
  391  a petition for approval to establish a CR rider to be used by
  392  that utility to construct eligible installations in geographic
  393  areas of this state which are unserved or underserved with
  394  natural gas service.
  395         (5)Eligible installations shall be included for purposes
  396  of calculating CRR revenue requirements for no more than 5
  397  years.
  398         (6)The total amount of CRR revenues in effect in any 1
  399  year may not exceed 2 percent of the utility’s total annual
  400  nonfuel revenue for the previous year.
  401         (7)The commission shall establish the following procedures
  402  in determining a utility’s CRR surcharges:
  403         (a)The utility shall calculate its CRR revenue
  404  requirements annually in the manner prescribed by this section
  405  and shall file the appropriate petitions with the commission
  406  seeking to establish or change the CRR revenue requirements and
  407  surcharges for the following year. The annual filings shall
  408  include:
  409         1.An annual final true-up filing showing the actual
  410  eligible installation costs and actual CRR revenues for the most
  411  recent 12-month period from January 1 through December 31 which
  412  ends before the annual petition filing. As part of this filing,
  413  the utility shall include a summary comparison of the actual
  414  eligible installation costs and CRR revenues to the estimated
  415  total eligible installation costs and CRR revenues previously
  416  reported for the same period covered by the filing in paragraph
  417  (b). The filing shall also include the final over-or-under
  418  recovery of total CRR revenue requirements for the final true-up
  419  period.
  420         2.An annual estimated or actual true-up filing showing the
  421  8-month actual and 4-month projected eligible installation costs
  422  and any CRR revenues collected or projected to be collected
  423  during the estimated or actual true-up period. The filing shall
  424  also include the estimated or actual over-or-under recovery of
  425  total eligible installation costs for the estimated or actual
  426  true-up period.
  427         3.An annual projection filing showing the 12-month
  428  projected CRR revenue requirements for the period beginning
  429  January 1 following the annual filing hearing.
  430         4.An annual petition setting forth proposed CRR revenue
  431  requirements and CRR surcharges to be effective for the 12-month
  432  period beginning January 1 following the annual hearing. Such
  433  proposed CRR revenue requirements and CRR surcharges shall take
  434  into account the data described in this paragraph and paragraphs
  435  (b) and (c).
  436         (b)The CRR revenue requirements and any changes thereto
  437  shall be calculated and implemented in accordance with the
  438  provisions contained in this subsection. CRR revenues are
  439  subject to refund based upon a finding and order of the
  440  commission to the extent provided in this subsection.
  441         (c)The utility shall establish separate accounts or
  442  subaccounts for each eligible installation for purposes of
  443  recording the costs incurred for each project. The utility shall
  444  also establish a separate account or subaccount for any revenues
  445  derived from specific CRR surcharges.
  446         (d)When a petition is filed by a utility pursuant to this
  447  subsection, the commission shall conduct a limited proceeding
  448  and determine the CRR revenue requirements and CRR surcharges to
  449  be charged by the utility pursuant to this section.
  450         (8)This section expires December 31, 2014, unless reviewed
  451  and reenacted by the Legislature before that date. However, the
  452  procedures and other applicable provisions in this section and
  453  the CCR surcharges approved pursuant to this section shall
  454  remain in effect for the full term of all eligible installations
  455  approved by the commission before December 31, 2014.
  456         Section 4. Paragraph (a) of subsection (1) of section
  457  377.6015, Florida Statutes, is amended to read:
  458         377.6015 Florida Energy and Climate Commission.—
  459         (1) The Florida Energy and Climate Commission is created
  460  within the Executive Office of the Governor. The commission
  461  shall be comprised of nine members appointed by the Governor,
  462  the Commissioner of Agriculture, and the Chief Financial
  463  Officer.
  464         (a) The Governor shall appoint one member from three
  465  persons nominated by the Florida Public Service Commission
  466  Nominating Council, created in s. 350.031, to each of seven
  467  seats on the commission. The Commissioner of Agriculture shall
  468  appoint one member from three persons nominated by the council
  469  to one seat on the commission. The Chief Financial Officer shall
  470  appoint one member from three persons nominated by the council
  471  to one seat on the commission.
  472         1. The council shall submit the recommendations to the
  473  Governor, the Commissioner of Agriculture, and the Chief
  474  Financial Officer by September 1 of those years in which the
  475  terms are to begin the following October or within 60 days after
  476  a vacancy occurs for any reason other than the expiration of the
  477  term. The Governor, the Commissioner of Agriculture, and the
  478  Chief Financial Officer may proffer names of persons to be
  479  considered for nomination by the council.
  480         2. The Governor, the Commissioner of Agriculture, and the
  481  Chief Financial Officer shall fill a vacancy occurring on the
  482  commission by appointment of one of the applicants nominated by
  483  the council only after a background investigation of such
  484  applicant has been conducted by the Department of Law
  485  Enforcement.
  486         3. Members shall be appointed to 3-year terms; however, in
  487  order to establish staggered terms, for the initial
  488  appointments, the Governor shall appoint four members to 3-year
  489  terms, two members to 2-year terms, and one member to a 1-year
  490  term, and the Commissioner of Agriculture and the Chief
  491  Financial Officer shall each appoint one member to a 3-year term
  492  and shall appoint a successor when that appointee’s term expires
  493  in the same manner as the original appointment. The terms of
  494  members shall begin on October 1 and end on September 30.
  495         4. The Governor shall select from the membership of the
  496  commission one person to serve as chair.
  497         5. A vacancy on the commission shall be filled for the
  498  unexpired portion of the term in the same manner as the original
  499  appointment.
  500         6. If the Governor, the Commissioner of Agriculture, or the
  501  Chief Financial Officer has not made an appointment within 30
  502  consecutive calendar days after the receipt of the
  503  recommendations, the council shall initiate, in accordance with
  504  this section, the nominating process within 30 days.
  505         7. Each appointment to the commission shall be subject to
  506  confirmation by the Senate during the next regular session after
  507  the vacancy occurs. If the Senate refuses to confirm or fails to
  508  consider the appointment of the Governor, the Commissioner of
  509  Agriculture, or the Chief Financial Officer, the council shall
  510  initiate, in accordance with this section, the nominating
  511  process within 30 days.
  512         8. The Governor or the Governor’s successor may recall an
  513  appointee.
  514         Section 5. Subsections (1) and (3) of section 525.09,
  515  Florida Statutes, are amended to read:
  516         525.09 Inspection fee.—
  517         (1) For the purpose of defraying the expenses incident to
  518  inspecting, testing, and analyzing petroleum fuels in this
  519  state, there shall be paid to the department a charge of one
  520  eighth cent per gallon on all gasoline, alternative fuel
  521  containing alcohol as defined in s. 525.01(1)(c)1. or 2.,
  522  kerosene that is not (except when used as aviation turbine
  523  fuel), and #1 fuel oil for sale or use in this state. For
  524  purposes of carbon reduction, there shall be paid to the
  525  department a charge of 1 cent per gallon on all gasoline,
  526  alternative fuel containing alcohol as defined in s.
  527  525.01(1)(c)1. or 2., diesel, kerosene that is not used as
  528  aviation turbine fuel, and #1 fuel oil for sale or use in this
  529  state. These fees This inspection fee shall be imposed in the
  530  same manner as the motor fuel tax pursuant to s. 206.41. Payment
  531  shall be made on or before the 25th day of each month.
  532         (3) All remittances to the department for the inspection
  533  tax herein provided shall be accompanied by a detailed report
  534  under oath showing the number of gallons of gasoline,
  535  alternative fuel containing alcohol as defined in s.
  536  525.01(1)(c)1. or 2., kerosene, or fuel oil sold and delivered
  537  in each county.
  538         Section 6. Section 525.10, Florida Statutes, is amended to
  539  read:
  540         525.10 Moneys to be paid into State Treasury; payment of
  541  expenses.—All moneys payable under this chapter shall be payable
  542  to the department and shall be paid by it into the State
  543  Treasury monthly to be deposited as provided in this section.
  544  The inspection fee shall be deposited into the General
  545  Inspection Trust Fund. One-half of the proceeds from the carbon
  546  reduction charge collected pursuant to s. 525.09 shall be
  547  deposited into the Florida Renewable Energy Trust Fund and one
  548  half shall be deposited into the General Revenue Fund
  549  unallocated. All expenses incurred in the enforcement of this
  550  chapter and other inspection laws of this state for which fees
  551  are collected, including acquiring equipment and other property,
  552  shall be paid from the General Inspection Trust Fund. No money
  553  shall be paid to any inspector or employee created under this
  554  chapter except from the funds collected from the administration
  555  of this chapter and deposited into the General Inspection Trust
  556  Fund.
  557         Section 7. (1)The Florida Energy and Climate Commission
  558  shall prepare a report that:
  559         (a)Identifies methods of increasing energy-efficiency
  560  practices among low-income households as defined in s. 420.9071,
  561  Florida Statutes. The commission shall, at a minimum, identify
  562  energy-efficiency programs that are currently offered to low
  563  income households by community action agencies, community-based
  564  organizations, and utility companies in this state and similar
  565  programs that are offered to low-income households in other
  566  states.
  567         (b)Determines the statewide impact of improving the level
  568  of the energy efficiency of rental housing stock, including, but
  569  not limited to, the environmental benefits of such improvements
  570  and the potential fiscal impact with respect to property
  571  tenants, owners, and landlords and to the economy. The
  572  commission shall consider the relative equity and economic
  573  efficiency of the cost-share for such energy-efficiency
  574  improvements.
  575         (c)Provides recommendations for implementing energy
  576  efficiency practices among residents of low-income households.
  577         (2)The commission shall submit the report to the President
  578  of the Senate and the Speaker of the House of Representatives by
  579  December 1, 2009.
  580         Section 8. This act shall take effect July 1, 2009.