CS for CS for CS for SB 1154                     First Engrossed
       
       
       
       
       
       
       
       
       20091154e1
       
       
    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. 377.705,
   34         F.S.; requiring the Solar Energy Center to charge
   35         testing fees; directing the Florida Building
   36         Commission to make all changes to the building and
   37         energy codes necessary to conform to this act;
   38         providing that if a specified commissioner of the
   39         Florida Energy and Climate Commission is not confirmed
   40         during the 2009 Regular Session or the 2010 Regular
   41         Session, the commissioner’s appointment shall be
   42         extended until May 1, 2010, except for any member who,
   43         during that time, the Senate expressly refuses to
   44         confirm; requiring the Florida Energy and Climate
   45         Commission to obtain the approval of the joint
   46         Legislative Budget Commission before spending or
   47         disbursing any funds received from the federal
   48         government as part of a federal stimulus package;
   49         amending s. 403.503, F.S.; revising the definition of
   50         “electrical power plant”; amending s. 525.09, F.S.;
   51         imposing a fee on alternative fuel containing alcohol;
   52         requiring the Florida Energy and Climate Commission to
   53         prepare a report that identifies ways in which to
   54         increase the energy-efficiency practices of low-income
   55         households; requiring the report to include certain
   56         determinations and recommendations; requiring that the
   57         report be submitted to the Legislature by a specified
   58         date; providing an effective date.
   59  
   60  Be It Enacted by the Legislature of the State of Florida:
   61  
   62         Section 1. Section 366.92, Florida Statutes, is amended to
   63  read:
   64         366.92 Florida clean renewable energy policy.—
   65         (1) It is the intent of the Legislature to promote the
   66  development of clean and renewable energy; protect the economic
   67  viability of Florida’s existing renewable energy facilities;
   68  diversify the types of fuel used to generate electricity in
   69  Florida; lessen Florida’s dependence on natural gas and fuel oil
   70  for the production of electricity; minimize the volatility of
   71  fuel costs; encourage investment within the state; improve
   72  environmental conditions; and, at the same time, minimize the
   73  costs of power supply to electric utilities and their customers.
   74         (2) As used in this section, the term:
   75         (a)“Class I clean energy source” means Florida clean
   76  energy resources derived from wind or solar photovoltaic
   77  systems.
   78         (b)“Class II clean energy source” means clean energy
   79  derived from Florida clean energy resources other than class I
   80  clean energy sources or class III clean energy sources.
   81         (c)“Class III clean energy source” means clean energy
   82  derived from nuclear energy or any fossil fuel generation for
   83  which carbon capture and sequestration plans have been approved
   84  by the Department of Environmental Protection or from use of
   85  pipeline-quality synthetic gas produced by processing waste
   86  petroleum coke with carbon capture and sequestration plans
   87  approved by the state or federal authority having jurisdiction.
   88         (d) “Clean energy” means electrical energy produced from a
   89  method that uses one or more of the following fuels or energy
   90  sources: nuclear energy placed in commercial service after July
   91  1, 2009; any fossil fuel generation for which carbon capture and
   92  sequestration plans have been approved by the Department of
   93  Environmental Protection; hydrogen produced from sources other
   94  than fossil fuels, biomass, solar photovoltaic, geothermal
   95  energy, wind energy, ocean energy, or hydroelectric power. The
   96  term includes waste heat from sulfuric acid manufacturing
   97  operations; waste heat thermal energy which is produced by a
   98  combined heat and power system placed in service in this state
   99  after July 1, 2009, and which is used to produce biofuel and any
  100  associated coproducts; energy produced using pipeline-quality
  101  synthetic gas produced by processing waste petroleum coke with
  102  carbon capture and sequestration plans approved by the state or
  103  federal authority having jurisdiction; and energy produced using
  104  biodiesel.
  105         (e)“Combined heat and power system” means a system that
  106  simultaneously or sequentially generates electricity and thermal
  107  energy from the same primary energy source.
  108         (f)(a) “Florida clean renewable energy resources” means
  109  clean renewable energy, as defined in s. 377.803, that is
  110  produced in Florida.
  111         (g)(b) “Provider” means a “utility” as defined in s.
  112  366.8255(1)(a).
  113         (c)“Renewable energy” means renewable energy as defined in
  114  s. 366.91(2)(d).
  115         (h)(d) “Clean Renewable energy credit” or “REC” means a
  116  product that represents the unbundled, separable, clean
  117  renewable attribute of clean renewable energy produced in
  118  Florida and is equivalent to 1 megawatt-hour of electricity
  119  generated by a source of clean renewable energy located in
  120  Florida. For combined heat and power systems placed in service
  121  in this state after July 1, 2009, one clean energy credit shall
  122  be produced for every 3.412 million British thermal units of
  123  waste heat thermal energy used to produce biofuel and any
  124  associated coproducts.
  125         (i)(e) “Clean Renewable portfolio standard” or “RPS” means
  126  the minimum percentage of total annual retail electricity sales
  127  by a public utility a provider to consumers in Florida which is
  128  that shall be supplied by clean renewable energy or through the
  129  purchase of clean energy credits from clean energy produced in
  130  Florida.
  131         (3)(a) Each public utility must meet or exceed the
  132  following clean portfolio standards through the production of
  133  clean energy or the purchase of clean energy credits:
  134         1.By January 1, 2013, 7 percent of the previous years’
  135  retail electricity sales;
  136         2.By January 1, 2016, 12 percent of the previous years’
  137  retail electricity sales;
  138         3.By January 1, 2019, 18 percent of the previous years’
  139  retail electricity sales; and
  140         4.By January 1, 2021, 20 percent of the previous years’
  141  retail electricity sales.
  142  
  143  No more than 25 percent of the amount of the clean portfolio
  144  standard requirement for each year may be from Class III clean
  145  energy sources. For the production or procurement of Class III
  146  clean energy, a Florida utility that is a member of the
  147  Southeastern Electric Reliability Council may co-own or purchase
  148  energy from a Class III clean energy source located in another
  149  state and owned by an affiliate in a holding company with multi
  150  state dispatch.
  151         (b)Except as otherwise provided in this section, an
  152  investor-owned electric utility that fails to meet or exceed its
  153  clean portfolio standard is subject to a penalty pursuant to s.
  154  366.095 for each day such failure continues, and the penalty may
  155  not be recovered from the utility’s ratepayers. No electric
  156  utility shall be required to produce or purchase any Class III
  157  clean energy, nor be fined or deemed imprudent for not acquiring
  158  any energy from a Class III clean energy source in order to
  159  achieve the clean energy standards provided in this section.
  160         (c)The commission shall excuse an investor-owned electric
  161  utility from compliance with the clean portfolio standard if:
  162         1.The supply of clean energy and clean energy credits is
  163  not adequate to satisfy the clean portfolio standard; or
  164         2.The cost of producing clean energy or purchasing clean
  165  energy credits is prohibitive in that the total costs of
  166  compliance with the clean portfolio standard exceeds 2 percent
  167  of the investor-owned electric utility’s total annual revenue
  168  from retail sales of electricity.
  169         (d)The cost of compliance with the clean portfolio
  170  standards includes:
  171         1.The costs associated with the purchase of clean energy
  172  credits;
  173         2.The costs paid by the utility which are associated with
  174  the clean energy credit market; and
  175         3.The utility’s costs of its self-build Florida clean
  176  energy resource which exceed the costs to the utility of the
  177  generation source it would have otherwise built or the energy or
  178  capacity, or both, it would have purchased from another source.
  179  
  180  Expenses for Class III clean energy sources may not be included
  181  in calculating the cost of compliance.
  182         (e)The cost of compliance must be allocated separately for
  183  Class I and Class II clean energy sources and, for each class,
  184  the total cost of compliance is prohibitive if the costs exceed
  185  1 percent of the investor-owned electric utility’s total annual
  186  revenue from retail sales of electricity.
  187         (f)Each investor-owned electric utility seeking to
  188  construct a Florida clean energy project must select the
  189  technology and project most likely to be cost-effective for the
  190  general body of ratepayers for that class of clean energy
  191  technology. In determining the most cost-effective construction
  192  option and in purchasing clean energy credits, an investor-owned
  193  utility shall seek the least-cost alternatives within each class
  194  of clean energy sources. The method of determining the least
  195  cost alternative shall be determined by the commission and may
  196  include requests for proposals, auctions, or other methods.
  197         (g)A clean energy credit remains the property of the owner
  198  of the clean energy resource from which it was derived until it
  199  is sold or transferred.
  200         (4)(3) The commission shall adopt rules providing
  201  requirements for:
  202         (a)Implementing the clean a renewable portfolio standard.
  203         (b)Determining the method of establishing least-cost
  204  options for the construction of facilities or the purchase of
  205  clean energy credits.
  206         (c)Determining what entities are eligible to produce clean
  207  energy credits.
  208         (d)Establishing the method for the recovery of costs or
  209  expenses prudently incurred to meet the clean portfolio standard
  210  as those costs are defined in paragraph (3)(d). The commission
  211  may allow cost recovery through a separate cost recovery clause
  212  or a limited scope proceeding. The costs of compliance with the
  213  clean portfolio standard must appear as a separate line item on
  214  each customer’s bill.
  215         (e)Filing reports concerning compliance by utilities with
  216  the clean portfolio standard.
  217         (f)Creating a clean energy credit market requiring each
  218  provider to supply renewable energy to its customers directly,
  219  by procuring, or through renewable energy credits. In developing
  220  the RPS rule, the commission shall consult the Department of
  221  Environmental Protection and the Florida Energy and Climate
  222  Commission. The rule shall not be implemented until ratified by
  223  the Legislature. The commission shall present a draft rule for
  224  legislative consideration by February 1, 2009.
  225         (a)In developing the rule, the commission shall evaluate
  226  the current and forecasted levelized cost in cents per kilowatt
  227  hour through 2020 and current and forecasted installed capacity
  228  in kilowatts for each renewable energy generation method through
  229  2020.
  230         (b)The commission’s rule:
  231         1.Shall include methods of managing the cost of compliance
  232  with the renewable portfolio standard, whether through direct
  233  supply or procurement of renewable power or through the purchase
  234  of renewable energy credits. The commission shall have
  235  rulemaking authority for providing annual cost recovery and
  236  incentive-based adjustments to authorized rates of return on
  237  common equity to providers to incentivize renewable energy.
  238  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  239  the rules developed pursuant to this subsection, the commission
  240  may approve projects and power sales agreements with renewable
  241  power producers and the sale of renewable energy credits needed
  242  to comply with the renewable portfolio standard. In the event of
  243  any conflict, this subparagraph shall supersede s. 366.91(3) and
  244  (4). However, nothing in this section shall alter the obligation
  245  of each public utility to continuously offer a purchase contract
  246  to producers of renewable energy.
  247         2.Shall provide for appropriate compliance measures and
  248  the conditions under which noncompliance shall be excused due to
  249  a determination by the commission that the supply of renewable
  250  energy or renewable energy credits was not adequate to satisfy
  251  the demand for such energy or that the cost of securing
  252  renewable energy or renewable energy credits was cost
  253  prohibitive.
  254         3.May provide added weight to energy provided by wind and
  255  solar photovoltaic over other forms of renewable energy, whether
  256  directly supplied or procured or indirectly obtained through the
  257  purchase of renewable energy credits.
  258         4.Shall determine an appropriate period of time for which
  259  renewable energy credits may be used for purposes of compliance
  260  with the renewable portfolio standard.
  261         5.Shall provide for monitoring of compliance with and
  262  enforcement of the requirements of this section.
  263         6.Shall ensure that energy credited toward compliance with
  264  the requirements of this section is not credited toward any
  265  other purpose.
  266         7.Shall include procedures to track and account for
  267  renewable energy credits, including ownership of renewable
  268  energy credits that are derived from a customer-owned renewable
  269  energy facility as a result of any action by a customer of an
  270  electric power supplier that is independent of a program
  271  sponsored by the electric power supplier.
  272         8.Shall provide for the conditions and options for the
  273  repeal or alteration of the rule in the event that new
  274  provisions of federal law supplant or conflict with the rule.
  275         (c)Beginning on April 1 of the year following final
  276  adoption of the commission’s renewable portfolio standard rule,
  277  each provider shall submit a report to the commission describing
  278  the steps that have been taken in the previous year and the
  279  steps that will be taken in the future to add renewable energy
  280  to the provider’s energy supply portfolio. The report shall
  281  state whether the provider was in compliance with the renewable
  282  portfolio standard during the previous year and how it will
  283  comply with the renewable portfolio standard in the upcoming
  284  year.
  285         (5)By February 1, 2010, and each year thereafter, the
  286  commission shall submit a report to the Legislature detailing
  287  further rulemaking activities, developments in the production of
  288  clean energy, how much and what types of clean energy are
  289  available in various regions of the state and at what cost, and
  290  any impediments to further increases in the production of clean
  291  energy in this state.
  292         (6)(4) In order to demonstrate the feasibility and
  293  viability of clean energy systems, the commission shall provide
  294  for full cost recovery under the environmental cost-recovery
  295  clause of all reasonable and prudent costs incurred by a
  296  provider for renewable energy projects that are zero greenhouse
  297  gas emitting at the point of generation, up to a total of 110
  298  megawatts statewide, and for which the provider has secured
  299  necessary land, zoning permits, and transmission rights within
  300  the state. Such costs shall be deemed reasonable and prudent for
  301  purposes of cost recovery so long as the provider has used
  302  reasonable and customary industry practices in the design,
  303  procurement, and construction of the project in a cost-effective
  304  manner appropriate to the location of the facility. The provider
  305  shall report to the commission as part of the cost-recovery
  306  proceedings the construction costs, in-service costs, operating
  307  and maintenance costs, hourly energy production of the renewable
  308  energy project, and any other information deemed relevant by the
  309  commission. Any provider constructing a clean energy facility
  310  pursuant to this section shall file for cost recovery no later
  311  than July 1, 2009.
  312         (7)(5) Each municipal electric utility and rural electric
  313  cooperative shall develop standards for the promotion,
  314  encouragement, and expansion of the use of renewable energy
  315  resources and energy conservation and efficiency measures. On or
  316  before April 1, 2009, and annually thereafter, each municipal
  317  electric utility and electric cooperative shall submit to the
  318  commission a report that identifies such standards.
  319         (8)(6)Nothing in This section does not shall be construed
  320  to impede or impair terms and conditions of existing contracts.
  321         (9)(7) The commission may adopt rules to administer and
  322  implement the provisions of this section.
  323         Section 2. Subsection (4) of section 366.93, Florida
  324  Statutes, is amended, and subsection (7) is added to that
  325  section, to read:
  326         366.93 Cost recovery for the siting, design, licensing, and
  327  construction of nuclear and integrated gasification combined
  328  cycle power plants.—
  329         (4) When the nuclear or integrated gasification combined
  330  cycle power plant is placed in commercial service, the utility
  331  shall be allowed to increase its base rate charges by the
  332  projected annual revenue requirements of the nuclear or
  333  integrated gasification combined cycle power plant based on the
  334  jurisdictional annual revenue requirements of the plant for the
  335  first 12 months of operation. The rate of return on capital
  336  investments shall be calculated using the utility’s rate of
  337  return last approved by the commission prior to the commercial
  338  inservice date of the nuclear or integrated gasification
  339  combined cycle power plant. If any existing generating plant is
  340  retired as a result of operation of the nuclear or integrated
  341  gasification combined cycle power plant, the commission shall
  342  allow for the recovery, through an increase in base rate
  343  charges, of the net book value of the retired plant over a
  344  period not to exceed 5 years or, if the commission determines
  345  that it would be more cost-effective to convert the existing
  346  generating plant to a biomass plant, allow for the recovery of
  347  the costs of conversion in base rate charges over a period that
  348  is determined by the commission.
  349         (7)In order to further promote the development of nuclear
  350  electrical generation and minimize the financial risk to any one
  351  utility associated with the construction of a nuclear power
  352  plant, electric utilities in this state are encouraged to pursue
  353  the joint ownership of nuclear power plants.
  354         Section 3. Section 366.99, Florida Statutes, is created to
  355  read:
  356         366.99Natural gas delivery; surcharge for carbon
  357  reduction.—
  358         (1)This section may be cited as the “Natural Gas Act.”
  359         (2)It is the intent of the Legislature to promote the
  360  expanded direct end use of natural gas for its inherent energy
  361  efficiency and environmental benefits.
  362         (3)As used in this section, the term “eligible
  363  installations” means natural gas utility facilities that:
  364         (a)Connect supply sources of natural gas to a distribution
  365  system that serves primarily residential customers;
  366         (b)Are in service and used and useful in providing utility
  367  service;
  368         (c)Were not included in the utility’s rate base for
  369  purposes of determining the utility’s base rate in the most
  370  recent general base-rate proceedings; and
  371         (d)Consist of mains that are greater than or equal to 4
  372  inches in diameter or that are certified to operate at a maximum
  373  allowable operating pressure greater than 60 pounds per square
  374  inch gauge, together with associated valves, regulator stations,
  375  vaults, transmission line taps, and other pipeline system
  376  components.
  377         (4)Notwithstanding any provision in this chapter or rule
  378  to the contrary, a public utility, as defined in s. 366.02,
  379  which is providing natural gas service may petition the
  380  commission to establish or modify a carbon-reduction surcharge
  381  to be used to construct eligible installations in areas of this
  382  state which are unserved or underserved with natural gas
  383  service. The surcharge shall be recovered through a cost
  384  recovery clause, separate and distinct from a utility’s base
  385  rates, using the same allocation methodology applicable to the
  386  utility’s recovery of costs recoverable pursuant to the Energy
  387  Conservation Cost Recovery Rule, rule 25-17.015, Florida
  388  Administrative Code. The surcharge is to recover the utility’s
  389  revenue requirement relevant to construction of the eligible
  390  installations and shall be in the amount of the pretax revenues
  391  equal to:
  392         (a)The utility’s weighted average cost of capital allowed
  393  in the most recent rate proceeding multiplied by the 13-month
  394  average net book value of eligible installations, including
  395  recognition of accumulated depreciation associated with eligible
  396  installations;
  397         (b)State, federal, and local income taxes;
  398         (c)Ad valorem taxes; and
  399         (d)Depreciation expenses on eligible installations.
  400         (5)When a petition is filed by a utility, the commission
  401  shall conduct a limited proceeding and determine the utility’s
  402  revenue requirements and the surcharge to be charged in the
  403  following year.
  404         (6)The petition must contain:
  405         (a)An estimation of the utility’s revenue requirements and
  406  carbon-reduction surcharge collections for the following year.
  407         (b)If a carbon-reduction surcharge has previously been
  408  established, an annual true-up filing showing the actual
  409  eligible installation costs and actual carbon-reduction
  410  surcharge revenues for the most recent 12-month period from
  411  January 1 through December 31 which ends before the annual
  412  petition filing, including a comparison of the actual eligible
  413  installation costs and carbon-reduction surcharge revenues to
  414  the estimated total eligible installation costs and carbon
  415  reduction surcharge revenues previously reported for the same
  416  period. The filing shall also include the over-or-under recovery
  417  of total carbon-reduction surcharge revenue requirements for the
  418  true-up period.
  419         (7)The utility shall establish separate accounts or
  420  subaccounts for each eligible installation for purposes of
  421  recording the costs incurred for each project. The utility shall
  422  also establish a separate account or subaccount for any revenues
  423  derived from specific carbon-reduction surcharges.
  424         (8)An eligible installation shall be included for the
  425  purposes of calculating revenue requirements for no more than 5
  426  years.
  427         (9)The total amount of carbon-reduction surcharge revenue
  428  in effect in any 1 year may not exceed 2 percent of the
  429  utility’s total annual nonfuel revenue for the previous year.
  430         (10)This section expires December 31, 2014, unless
  431  reviewed and reenacted by the Legislature before that date.
  432  However, the procedures and other applicable provisions in this
  433  section and the carbon-reduction surcharges approved pursuant to
  434  this section shall remain in effect for the full term of all
  435  eligible installations approved by the commission before
  436  December 31, 2014.
  437         Section 4. Paragraph (a) of subsection (1) of section
  438  377.6015, Florida Statutes, is amended to read:
  439         377.6015 Florida Energy and Climate Commission.—
  440         (1) The Florida Energy and Climate Commission is created
  441  within the Executive Office of the Governor. The commission
  442  shall be comprised of nine members appointed by the Governor,
  443  the Commissioner of Agriculture, and the Chief Financial
  444  Officer.
  445         (a) The Governor shall appoint one member from three
  446  persons nominated by the Florida Public Service Commission
  447  Nominating Council, created in s. 350.031, to each of seven
  448  seats on the commission. The Commissioner of Agriculture shall
  449  appoint one member from three persons nominated by the council
  450  to one seat on the commission. The Chief Financial Officer shall
  451  appoint one member from three persons nominated by the council
  452  to one seat on the commission.
  453         1. The council shall submit the recommendations to the
  454  Governor, the Commissioner of Agriculture, and the Chief
  455  Financial Officer by September 1 of those years in which the
  456  terms are to begin the following October or within 60 days after
  457  a vacancy occurs for any reason other than the expiration of the
  458  term. The Governor, the Commissioner of Agriculture, and the
  459  Chief Financial Officer may proffer names of persons to be
  460  considered for nomination by the council.
  461         2. The Governor, the Commissioner of Agriculture, and the
  462  Chief Financial Officer shall fill a vacancy occurring on the
  463  commission by appointment of one of the applicants nominated by
  464  the council only after a background investigation of such
  465  applicant has been conducted by the Department of Law
  466  Enforcement.
  467         3. Members shall be appointed to 3-year terms; however, in
  468  order to establish staggered terms, for the initial
  469  appointments, the Governor shall appoint four members to 3-year
  470  terms, two members to 2-year terms, and one member to a 1-year
  471  term, and the Commissioner of Agriculture and the Chief
  472  Financial Officer shall each appoint one member to a 3-year term
  473  and shall appoint a successor when that appointee’s term expires
  474  in the same manner as the original appointment. The terms of
  475  members shall begin on October 1 and end on September 30.
  476         4. The Governor shall select from the membership of the
  477  commission one person to serve as chair.
  478         5. A vacancy on the commission shall be filled for the
  479  unexpired portion of the term in the same manner as the original
  480  appointment.
  481         6. If the Governor, the Commissioner of Agriculture, or the
  482  Chief Financial Officer has not made an appointment within 30
  483  consecutive calendar days after the receipt of the
  484  recommendations, the council shall initiate, in accordance with
  485  this section, the nominating process within 30 days.
  486         7. Each appointment to the commission shall be subject to
  487  confirmation by the Senate during the next regular session after
  488  the vacancy occurs. If the Senate refuses to confirm or fails to
  489  consider the appointment of the Governor, the Commissioner of
  490  Agriculture, or the Chief Financial Officer, the council shall
  491  initiate, in accordance with this section, the nominating
  492  process within 30 days.
  493         8. The Governor or the Governor’s successor may recall an
  494  appointee.
  495         Section 5. Section 377.705, Florida Statutes, is amended to
  496  read:
  497         377.705 Solar Energy Center; development of solar energy
  498  standards.—
  499         (1) SHORT TITLE.—This section act shall be known and may be
  500  cited as the Solar Energy Standards Act of 1976.
  501         (2) LEGISLATIVE FINDINGS AND INTENT.—
  502         (a) Because of increases in the cost of conventional fuel,
  503  certain applications of solar energy are becoming competitive,
  504  particularly when life-cycle costs are considered. It is the
  505  intent of the Legislature in formulating a sound and balanced
  506  energy policy for the state to encourage the development of an
  507  alternative energy capability in the form of incident solar
  508  energy.
  509         (b) Toward this purpose, the Legislature intends to provide
  510  incentives for the production and sale of, and to set standards
  511  for, solar energy systems. Such standards must shall ensure that
  512  solar energy systems manufactured or sold within the state are
  513  effective and represent a high level of quality of materials,
  514  workmanship, and design.
  515         (3) DEFINITIONS.—As used in this section, the term:
  516         (a) “Center” means is defined as the Florida Solar Energy
  517  Center of the Board of Governors.
  518         (b) “Solar energy systems” means is defined as equipment
  519  that which provides for the collection and use of incident solar
  520  energy for water heating, space heating or cooling, or other
  521  applications that which normally require or would require a
  522  conventional source of energy such as petroleum products,
  523  natural gas, or electricity, and that which performs primarily
  524  with solar energy. In such other systems in which solar energy
  525  is used in a supplemental way, only those components that which
  526  collect and transfer solar energy are shall be included in this
  527  definition.
  528         (4) FLORIDA SOLAR ENERGY CENTER TO SET STANDARDS, REQUIRE
  529  DISCLOSURE, SET TESTING FEES.—
  530         (a) The center shall develop and promulgate standards for
  531  solar energy systems manufactured or sold in this state based on
  532  the best currently available information and shall consult with
  533  scientists, engineers, or persons in research centers who are
  534  engaged in the construction of, experimentation with, and
  535  research of solar energy systems to properly identify the most
  536  reliable designs and types of solar energy systems.
  537         (b) The center shall select nationally-recognized standards
  538  for solar energy systems and establish criteria for testing the
  539  performance of solar energy systems and shall maintain the
  540  necessary capability for testing or evaluating the performance
  541  of solar energy systems. The center may accept results of tests
  542  on solar energy systems made by other organizations, companies,
  543  or persons when such tests are conducted according to the
  544  criteria established by the center and when the testing entity
  545  has no vested interest in the manufacture, distribution or sale
  546  of solar energy systems.
  547         (5)(c)FEES.-The center shall charge be entitled to receive
  548  a testing fee sufficient to cover the costs of such testing. All
  549  testing fees shall be transmitted by the center to the Chief
  550  Financial Officer to be deposited in the Solar Energy Center
  551  Testing Trust Fund, which is hereby created in the State
  552  Treasury, and disbursed for the payment of expenses incurred in
  553  testing solar energy systems.
  554         (6)(d) All solar energy systems manufactured or sold in the
  555  state must meet the nationally-recognized standards selected
  556  established by the center and shall display accepted results of
  557  approved performance tests in a manner prescribed by the center.
  558         Section 6. The Florida Building Commission is directed to
  559  make all changes to the building and energy codes necessary to
  560  conform those rules to this bill.
  561         Section 7. Subsection (14) of section 403.503, Florida
  562  Statutes, is amended to read:
  563         403.503 Definitions relating to Florida Electrical Power
  564  Plant Siting Act.—As used in this act:
  565         (14) “Electrical power plant” means, for the purpose of
  566  certification, any steam or solar electrical generating facility
  567  using any process or fuel, including nuclear materials, except
  568  that this term does not include any steam or solar electrical
  569  generating facility of less than 75 megawatts in capacity unless
  570  the applicant for such a facility elects to apply for
  571  certification under this act. This term also includes the site;
  572  all associated facilities that will be owned by the applicant
  573  that are physically connected to the site; all associated
  574  facilities that are indirectly connected to the site by other
  575  proposed associated facilities that will be owned by the
  576  applicant; and associated transmission lines that will be owned
  577  by the applicant which connect the electrical power plant to an
  578  existing transmission network or rights-of-way to which the
  579  applicant intends to connect. At the applicant’s option, this
  580  term may include any offsite associated facilities that will not
  581  be owned by the applicant; offsite associated facilities that
  582  are owned by the applicant but that are not directly connected
  583  to the site; any proposed terminal or intermediate substations
  584  or substation expansions connected to the associated
  585  transmission line; or new transmission lines, upgrades, or
  586  improvements of an existing transmission line on any portion of
  587  the applicant’s electrical transmission system necessary to
  588  support the generation injected into the system from the
  589  proposed electrical power plant.
  590         Section 8. Subsections (1) and (3) of section 525.09,
  591  Florida Statutes, are amended to read:
  592         525.09 Inspection fee.—
  593         (1) For the purpose of defraying the expenses incident to
  594  inspecting, testing, and analyzing petroleum fuels in this
  595  state, there shall be paid to the department a charge of one
  596  eighth cent per gallon on all gasoline, alternative fuel
  597  containing alcohol as defined in s. 525.01(1)(c)1. or 2.,
  598  kerosene that is not (except when used as aviation turbine
  599  fuel), and #1 fuel oil for sale or use in this state. This
  600  inspection fee shall be imposed in the same manner as the motor
  601  fuel tax pursuant to s. 206.41. Payment shall be made on or
  602  before the 25th day of each month.
  603         (3) All remittances to the department for the inspection
  604  tax herein provided shall be accompanied by a detailed report
  605  under oath showing the number of gallons of gasoline,
  606  alternative fuel containing alcohol as defined in s.
  607  525.01(1)(c)1. or 2., kerosene, or fuel oil sold and delivered
  608  in each county.
  609         Section 9. (1)The Florida Energy and Climate Commission
  610  shall prepare a report that:
  611         (a)Identifies methods of increasing energy-efficiency
  612  practices among low-income households as defined in ss. 420.9071
  613  and 421.03, Florida Statutes. The commission shall, at a
  614  minimum, identify energy-efficiency programs that are currently
  615  offered to low-income households by community action agencies,
  616  community-based organizations, and utility companies in this
  617  state and similar programs that are offered to low-income
  618  households in other states.
  619         (b)Determines the statewide impact of improving the level
  620  of the energy efficiency of rental housing stock, including, but
  621  not limited to, the environmental benefits of such improvements
  622  and the potential fiscal impact with respect to property
  623  tenants, owners, and landlords and to the economy. The
  624  commission shall consider the relative equity and economic
  625  efficiency of the cost-share for such energy-efficiency
  626  improvements.
  627         (c)Provides recommendations for implementing energy
  628  efficiency practices among residents of low-income households.
  629         (2)The commission shall submit the report to the President
  630  of the Senate and the Speaker of the House of Representatives by
  631  December 1, 2009.
  632         Section 10. The term of any person sitting as a member of
  633  the Florida Energy and Climate Commission on March 3, 2009,
  634  whose appointment is not confirmed by the Senate during the 2009
  635  Regular Session or the 2010 Regular Session, shall be extended
  636  until completion of the 2010 Regular Session, except for any
  637  member who, during that time, the Senate expressly refuses to
  638  confirm.
  639         Section 11. The Florida Energy and Climate Commission must
  640  obtain the approval of the joint Legislative Budget Commission
  641  before spending or disbursing any funds received from the
  642  federal government as part of a federal stimulus package.
  643         Section 12. This act shall take effect July 1, 2009.