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.