HB 1317

1
A bill to be entitled
2An act relating to renewable energy; creating s. 366.925,
3F.S.; establishing the "Florida Renewable Energy Freedom
4Act"; providing definitions; requiring electric utilities
5to provide producers of renewable energy with
6interconnection and metering services; specifying
7requirements and fees for such services; requiring
8electric utilities to purchase renewable energy at
9specified rates; requiring the Florida Public Service
10Commission to adopt specified rules; requiring producers
11of renewable energy to provide the commission with certain
12information; providing a limitation on the sale or
13transfer of electrical energy generated by renewable
14energy sources; requiring the commission to submit an
15annual report to the Governor and the Legislature;
16specifying report requirements; providing an effective
17date.
18
19Be It Enacted by the Legislature of the State of Florida:
20
21     Section 1.  Section 366.925, Florida Statutes, is created
22to read:
23     366.925  Florida Renewable Energy Freedom Act.--
24     (1)  DEFINITIONS.--As used in this section:
25     (a)  "Interconnection service" means connection to an
26electric utility's system or facilities used for the
27transmission and distribution of electrical energy.
28     (b)  "Producer" means the owner of equipment that, when
29installed in connection with a dwelling unit, facility, or other
30structure, generates renewable energy as defined in s.
31366.91(2)(d).
32     (c)  "Reasonable rate" means the lowest rate needed for the
33development of each kilowatt hour of energy generated by a
34renewable energy source, differentiated by such factors as
35technology type, project size, location, and resource quality,
36plus a profit of at least 10 percent but not more than 30
37percent.
38     (2)  INTERCONNECTION SERVICE; PURCHASE OF RENEWABLE
39ENERGY.--Notwithstanding any other provision of law:
40     (a)  An electric utility serving a territory in which a
41renewable energy producer is located shall provide a purchase
42contract and interconnection service to a producer within 60
43days after the request of the producer.
44     (b)  Interconnection service shall comply with the
45interconnection standards provided by the commission, at a fee
46not to exceed the electric utility's incremental cost of
47providing such service.
48     (c)  Interconnection service shall include a separate
49supply-oriented meter to determine the amount of energy being
50generated by a producer, at a fee not to exceed the electrical
51utility's incremental cost of providing such service.
52     (d)  The serving electric utility shall purchase energy
53generated by a renewable energy source as defined in s.
54366.91(2)(d) from a producer at a reasonable rate as determined
55by commission rule.
56     (3)  RULES.--By November 1, 2009, the commission shall
57adopt rules as necessary to implement this section, including:
58     (a)  A standard contract for a duration of at least 20
59years to be used in purchase agreements between producers and
60electric utilities under this section, including provisions for
61interconnection and metering services, the rate of purchase for
62each kilowatt hour of renewable energy generated, and a method
63to adjust the rate for inflation.
64     (b)  A differentiated schedule of reasonable rates for
65energy generated by each renewable energy source listed in
66366.91(2)(d).
67     (c)  A reduction measure for rates paid to a producer who
68receives federal or state subsidies, tax credits, or other
69financial incentives.
70     (d)  Eligibility criteria for producers, including, but not
71limited to, a minimum level of renewable energy generation.
72     (e)  Alternative cost-recovery mechanisms for the recovery
73of costs incurred by electric utilities under this section.
74     (f)  Standards for interconnection and metering services
75under this section.
76     (4)  DISCLOSURE.--All producers of renewable energy shall,
77upon request, provide the commission any information that may be
78relevant to the performance of commission duties required under
79this section; however, this section does not permit or require
80the disclosure of information that is confidential under state
81or federal law.
82     (5)  LIMITATION.--Electrical energy generated by renewable
83energy sources may only be sold or otherwise transferred once by
84a producer.
85     (6)  REPORT.--Beginning January 1, 2010, the commission
86shall submit an annual report on the status of the market of
87renewable energy sources, the development of electrical energy
88production costs by such sources, an assessment of the economic
89and environmental impacts related to the use of renewable energy
90in the state, and any related recommendations to the Governor,
91the President of the Senate, and the Speaker of the House of
92Representatives.
93     Section 2.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.