| 1 | A bill to be entitled |
| 2 | An act relating to renewable energy; creating s. 366.925, |
| 3 | F.S.; establishing the "Florida Renewable Energy Freedom |
| 4 | Act"; providing definitions; requiring electric utilities |
| 5 | to provide producers of renewable energy with |
| 6 | interconnection and metering services; specifying |
| 7 | requirements and fees for such services; requiring |
| 8 | electric utilities to purchase renewable energy at |
| 9 | specified rates; requiring the Florida Public Service |
| 10 | Commission to adopt specified rules; requiring producers |
| 11 | of renewable energy to provide the commission with certain |
| 12 | information; providing a limitation on the sale or |
| 13 | transfer of electrical energy generated by renewable |
| 14 | energy sources; requiring the commission to submit an |
| 15 | annual report to the Governor and the Legislature; |
| 16 | specifying report requirements; providing an effective |
| 17 | date. |
| 18 |
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| 19 | Be It Enacted by the Legislature of the State of Florida: |
| 20 |
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| 21 | Section 1. Section 366.925, Florida Statutes, is created |
| 22 | to 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 |
| 26 | electric utility's system or facilities used for the |
| 27 | transmission and distribution of electrical energy. |
| 28 | (b) "Producer" means the owner of equipment that, when |
| 29 | installed in connection with a dwelling unit, facility, or other |
| 30 | structure, generates renewable energy as defined in s. |
| 31 | 366.91(2)(d). |
| 32 | (c) "Reasonable rate" means the lowest rate needed for the |
| 33 | development of each kilowatt hour of energy generated by a |
| 34 | renewable energy source, differentiated by such factors as |
| 35 | technology type, project size, location, and resource quality, |
| 36 | plus a profit of at least 10 percent but not more than 30 |
| 37 | percent. |
| 38 | (2) INTERCONNECTION SERVICE; PURCHASE OF RENEWABLE |
| 39 | ENERGY.--Notwithstanding any other provision of law: |
| 40 | (a) An electric utility serving a territory in which a |
| 41 | renewable energy producer is located shall provide a purchase |
| 42 | contract and interconnection service to a producer within 60 |
| 43 | days after the request of the producer. |
| 44 | (b) Interconnection service shall comply with the |
| 45 | interconnection standards provided by the commission, at a fee |
| 46 | not to exceed the electric utility's incremental cost of |
| 47 | providing such service. |
| 48 | (c) Interconnection service shall include a separate |
| 49 | supply-oriented meter to determine the amount of energy being |
| 50 | generated by a producer, at a fee not to exceed the electrical |
| 51 | utility's incremental cost of providing such service. |
| 52 | (d) The serving electric utility shall purchase energy |
| 53 | generated by a renewable energy source as defined in s. |
| 54 | 366.91(2)(d) from a producer at a reasonable rate as determined |
| 55 | by commission rule. |
| 56 | (3) RULES.--By November 1, 2009, the commission shall |
| 57 | adopt rules as necessary to implement this section, including: |
| 58 | (a) A standard contract for a duration of at least 20 |
| 59 | years to be used in purchase agreements between producers and |
| 60 | electric utilities under this section, including provisions for |
| 61 | interconnection and metering services, the rate of purchase for |
| 62 | each kilowatt hour of renewable energy generated, and a method |
| 63 | to adjust the rate for inflation. |
| 64 | (b) A differentiated schedule of reasonable rates for |
| 65 | energy generated by each renewable energy source listed in |
| 66 | 366.91(2)(d). |
| 67 | (c) A reduction measure for rates paid to a producer who |
| 68 | receives federal or state subsidies, tax credits, or other |
| 69 | financial incentives. |
| 70 | (d) Eligibility criteria for producers, including, but not |
| 71 | limited to, a minimum level of renewable energy generation. |
| 72 | (e) Alternative cost-recovery mechanisms for the recovery |
| 73 | of costs incurred by electric utilities under this section. |
| 74 | (f) Standards for interconnection and metering services |
| 75 | under this section. |
| 76 | (4) DISCLOSURE.--All producers of renewable energy shall, |
| 77 | upon request, provide the commission any information that may be |
| 78 | relevant to the performance of commission duties required under |
| 79 | this section; however, this section does not permit or require |
| 80 | the disclosure of information that is confidential under state |
| 81 | or federal law. |
| 82 | (5) LIMITATION.--Electrical energy generated by renewable |
| 83 | energy sources may only be sold or otherwise transferred once by |
| 84 | a producer. |
| 85 | (6) REPORT.--Beginning January 1, 2010, the commission |
| 86 | shall submit an annual report on the status of the market of |
| 87 | renewable energy sources, the development of electrical energy |
| 88 | production costs by such sources, an assessment of the economic |
| 89 | and environmental impacts related to the use of renewable energy |
| 90 | in the state, and any related recommendations to the Governor, |
| 91 | the President of the Senate, and the Speaker of the House of |
| 92 | Representatives. |
| 93 | Section 2. This act shall take effect July 1, 2009. |