Florida Senate - 2009 SB 2328 By Senator Dean 3-00914E-09 20092328__ 1 A bill to be entitled 2 An act relating to clean energy; creating the Clean 3 Portfolio Standards Act; providing legislative intent; 4 defining the term “clean energy”; requiring each 5 electric utility to ensure that at least 20 percent of 6 all retail electric sales be derived from clean energy 7 by a specified date; requiring public utilities to 8 give priority to entities that produce clean energy in 9 this state when purchasing electricity; requiring each 10 electric utility to make a good faith effort to 11 acquire sufficient clean energy to comply with the 12 provisions of the act; providing exceptions; 13 encouraging electric utilities in this state to pursue 14 the joint-ownership of nuclear power plants; 15 authorizing the Public Service Commission to adopt 16 rules to ensure that public utilities produce clean 17 energy in a fair and impartial manner; authorizing the 18 Public Service Commission to develop an accreditation 19 process to ensure that any entities providing clean 20 energy in this state satisfy the legislative goals of 21 this act; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. (1) This act may be cited as the “Clean 26 Portfolio Standards Act.” 27 (2)(a) The Legislature finds that it is in the public’s 28 best interest to: 29 1. Encourage investment in clean energy resources in order 30 to expand environmentally sustainable methods of generating 31 electricity. 32 2. Stimulate the economic growth of this state. 33 3. Enhance the continued diversification of the fuel 34 sources for electricity used in the state. 35 (b) The Legislature further finds and declares that a 36 program requiring electric utilities to use clean energy is a 37 way to encourage investments in clean energy resources, 38 stimulate economic growth within the state, and enhance the 39 continued diversification of the state's energy resources, while 40 minimizing the rates paid by consumers. 41 (3) As used in this section, the term “clean energy” means 42 demand-side reductions in electrical energy consumption 43 resulting from a commission approved conservation program, 44 electrical energy produced or purchased from a method that uses 45 one or more of the following fuels or energy sources: nuclear 46 energy, solar energy, geothermal energy, wind energy, ocean 47 energy, hydroelectric power, and electrical energy produced or 48 purchased by an electric utility from resources that use biomass 49 or solid waste and has, at a minimum, net carbon neutral 50 emissions over the life of the facility. 51 (4) Each electric utility, as defined in s. 366.02, Florida 52 Statutes, shall ensure that by the year 2020, and for each year 53 thereafter, at least 20 percent of all retail electric sales be 54 derived from clean energy produced in this state. 55 (5) When a public utility as defined in s. 366.02, Florida 56 Statutes, must produce or procure clean energy in order to 57 satisfy the requirements of this section, the public utility 58 shall use a competitive-procurement process, and may use an 59 independent third-party administrator, to select the most cost 60 effective alternative available to meet the capacity and energy 61 requirements of its consumers, including the repowering or 62 replacement of existing fossil-fueled facilities. For the 63 procurement of clean energy, each public utility shall use 64 sources of clean energy which are not related to or affiliated 65 with the public utility, except as part of a holding company 66 with multi-state dispatch. Priority shall be given to clean 67 energy produced in this state, unless cost prohibitive or 68 limited by transmission. 69 (6) Each electric utility shall make a good faith effort to 70 acquire sufficient clean energy to comply with the provisions of 71 this section. An electric utility shall be excused from 72 compliance with any clean portfolio standard based upon a 73 showing that the collective supply of clean energy is not 74 adequate to satisfy the requirements of this section, or the 75 cost of securing clean energy is prohibitive. 76 (7) In order to further promote the development of nuclear 77 electrical generation and minimize the financial risk to any one 78 utility associated with the construction of a nuclear power 79 plant, electric utilities in this state are encouraged to pursue 80 the joint-ownership of nuclear power plants. Under such joint 81 ownership agreements, the costs of siting, preconstruction and 82 construction shall be shared on a pro-rata basis in proportion 83 to the capacity and energy received. For the purpose of this 84 section, the commitment of an electric utility to enter into a 85 joint-ownership arrangement may be used to comply with the goals 86 set forth in this section. 87 (8) The Public Service Commission may adopt rules to ensure 88 that public utilities produce clean energy in a fair and 89 impartial manner, consistent with the goals set forth in this 90 section. The Public Service Commission also may develop an 91 accreditation process to ensure that any entities providing 92 clean energy in this state satisfy the goals of this act. 93 Section 2. This act shall take effect July 1, 2009.