Florida Senate - 2009                                    SB 2392
       
       
       
       By Senator Altman
       
       
       
       
       24-01420-09                                           20092392__
    1                        A bill to be entitled                      
    2         An act relating to renewable energy; creating s.
    3         366.925, F.S.; establishing the “Florida Renewable
    4         Energy Freedom Act”; providing definitions; requiring
    5         electric utilities to provide producers of renewable
    6         energy with interconnection and metering services;
    7         specifying requirements and fees for such services;
    8         requiring electric utilities to purchase renewable
    9         energy at specified rates; requiring the Florida
   10         Public Service Commission to adopt specified rules;
   11         requiring producers of renewable energy to provide the
   12         commission with certain information; providing a
   13         limitation on the sale or transfer of electrical
   14         energy produced from renewable energy sources;
   15         requiring the commission to submit an annual report to
   16         the Governor and the Legislature; specifying report
   17         requirements; providing an effective date.
   18  
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Section 366.925, Florida Statutes, is created to
   22  read:
   23         366.925 Florida Renewable Energy Freedom Act.—
   24         (1) DEFINITIONS.—As used in this section:
   25         (a) “Interconnection service” means connection to the
   26  system or facilities used for the transmission and distribution
   27  of electrical energy for general supply.
   28         (b) “Producer” means the owner of equipment that, when
   29  installed in connection with a dwelling unit, facility, or other
   30  structure, processes or generates renewable energy as defined in
   31  s. 366.91(2)(d).
   32         (c) “Reasonable rate” means the lowest rate needed for the
   33  development of each kilowatt hour of energy produced 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 ENERGY.
   39  Notwithstanding any other provision of law:
   40         (a) Electric utilities serving a community 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 be offered based on the
   45  standards developed by the Institute of Electrical and
   46  Electronic Engineers and incorporated in IEEE Standard 1547 for
   47  Interconnecting Distributed Resources with Electric Power
   48  Systems, as may be amended, at a fee not to exceed the electric
   49  utility’s incremental cost of providing such service.
   50         (c) Interconnection service shall include a separate supply
   51  oriented meter to determine the amount of energy being generated
   52  by a producer, at a fee not to exceed the electrical utility’s
   53  incremental cost of providing such service.
   54         (d) The serving electric utility shall purchase energy
   55  generated by a renewable energy source as defined in s.
   56  366.91(2)(d) from a producer at a reasonable rate as determined
   57  by commission rule.
   58         (3) RULES.—By November 1, 2009, the commission shall adopt
   59  rules as necessary to implement the provisions of this section,
   60  including:
   61         (a) A standard contract for a duration of at least 20 years
   62  to be used in all purchase agreements between producers and
   63  electric utilities, including provisions for interconnection and
   64  metering services, the rate of purchase for each kilowatt hour
   65  of renewable energy generated, and a method to adjust the rate
   66  for inflation.
   67         (b) A differentiated schedule of reasonable rates for
   68  energy produced by each renewable energy source listed in s.
   69  366.91(2)(d).
   70         (c) A reduction measure for rates paid to a producer who
   71  receives federal or state subsidies, tax credits, or other
   72  financial incentives.
   73         (d) Eligibility criteria for participating producers,
   74  including, but limited to, a minimum level of renewable energy
   75  generation.
   76         (e) Alternative cost recovery mechanisms for the recovery
   77  of costs incurred by electric utilities in implementing the
   78  provisions of this section.
   79         (4) DISCLOSURE.—All producers of renewable energy shall,
   80  upon request, provide the commission any information that may be
   81  relevant to the performance of commission duties required under
   82  this section; however, this section does not permit or require
   83  the disclosure of information that is confidential under state
   84  or federal law.
   85         (5) LIMITATION.—Electrical energy produced from renewable
   86  energy sources may be sold or otherwise transferred only once by
   87  a producer.
   88         (6) REPORT.—Beginning January 1, 2010, the commission shall
   89  submit an annual report on the status of the market of renewable
   90  energy sources, the development of electrical energy production
   91  costs by such sources, an assessment of the economic and
   92  environmental impacts related to the use of renewable energy in
   93  the state, and any related recommendations to the Governor, the
   94  President of the Senate, and the Speaker of the House of
   95  Representatives.
   96         Section 2. This act shall take effect July 1, 2009.