HB 1267

A bill to be entitled
2An act relating to renewable energy; providing legislative
3findings; providing definitions; requiring each electric
4utility in the state to collect from each residential,
5commercial, and industrial customer a designated monthly
6systems charge; requiring the electric utilities to
7deposit collected funds into the Sustainable and Renewable
8Energy Policy Trust Fund; creating a direct-support
9organization for the Florida Energy Office; providing for
10a board of directors of the direct-support organization;
11providing for appointment of members and terms of office;
12requiring a contract between the office and the direct-
13support organization; providing for the use of the
14deposited funds; requiring an annual audit; amending s.
15366.91, F.S.; requiring that a purchase contract offered
16to producers of renewable energy contain payment
17provisions for energy and capacity based upon a public
18utility's equivalent cost-recovery rate for certain clean
19energy projects rather than the utility's full avoided
20costs; amending s. 377.806, F.S.; revising the expiration
21date for the Solar Energy System Incentives Program;
22extending the period of time for which residents of the
23state are eligible to receive rebates for specified solar
24energy systems; revising the rebate amount for eligible
25solar energy systems; providing a schedule for rebate
26amounts based on the total wattage of the system;
27providing an effective date.
29Be It Enacted by the Legislature of the State of Florida:
31     Section 1.  (1)  The Legislature finds that there is a need
32for a funding mechanism to support and finance a comprehensive
33energy policy, especially as it relates to sustainable and
34renewable energy, energy conservation, and energy efficiencies.
35With such a stable funding mechanism, this state will realize
36important long-term goals, including:
37     (a)  Increased independence from foreign oil;
38     (b)  Ensuring an adequate and reliable energy supply;
39     (c)  The promotion of economic growth and new investment in
40the creation of high-paying jobs;
41     (d)  The mitigation adverse environmental impacts and
42promotion of stewardship of the environment;
43     (e)  Leading the nation in energy conservation and energy
44efficiencies through needed support for implementing and
45marketing the products of renewable energy research and
46innovation; and
47     (f)  Contributing to a sustainable and renewable energy
48policy for the state.
49     (2)  As used in this section, the term:
50     (a)  "Direct-support organization" means an organization
51that is:
52     1.  A Florida corporation, not for profit, incorporated
53under chapter 617, Florida Statutes, and approved by the
54Department of State;
55     2.  Organized and operated exclusively to obtain funds; to
56request and receive grants, gifts, and bequests of moneys; to
57acquire, receive, hold, invest, and administer in its own name
58securities, funds, or property; and to make expenditures to
59support the achievement of the goals stated under subsection (1)
60and to increase public awareness of and support for the
61Sustainable and Renewable Energy Trust Fund; and
62     3.  Determined by the office to be operating in a manner
63consistent with the goals stated under subsection (1).
64     (b)  "Electric utility" means any municipal electric
65utility, investor-owned electric utility, or rural electric
66cooperative that owns, maintains, or operates an electric
67generation, transmission, or distribution system within the
69     (c)  "Energy conservation" and "energy efficiencies" means
70any activity that facilitates and promotes the use of cost-
71effective energy conservation, energy-demand management, and
72renewable energy technologies.
73     (d)  "Office" means the Florida Energy Office.
74     (e)  "Renewable energy" means solar photovoltaic energy,
75solar thermal energy, geothermal energy, ocean thermal energy,
76wave or tidal energy, wind, fuel cells, landfill gas, hydrogen
77production and hydrogen conversion technologies, low-emission
78advanced biomass conversion technologies, alternative fuels used
79for electricity generation, including ethanol, biodiesel, or
80other fuel produced in this state and derived from agricultural
81produce, algae, food waste, or waste vegetable oil, usable
82electricity from combined heat and power systems that have waste
83heat recovery systems, thermal storage systems, and other energy
84resources and emerging technologies that have significant
85potential for commercialization and that do not involve the
86combustion of coal, petroleum or petroleum products, municipal
87solid waste, or nuclear fission.
88     (3)  Beginning January 1, 2011, each electric utility shall
89collect from each residential, commercial, and industrial
90electric utility customer a monthly charge of 25 cents as a
91systems benefits charge. The electric utilities shall deposit
92the collected funds into the Sustainable and Renewable Energy
93Policy Trust Fund.
94     (4)(a)  The Florida Energy Office shall establish a direct-
95support organization to provide assistance, funding, and support
96for the office in carrying out its mission. This section governs
97the creation, use, powers, and duties of the direct-support
99     (b)  The direct-support organization shall be governed by a
100board of directors. The board of directors shall consist of nine
101members, as follows:
102     1.  The chair of the Florida Public Service Commission, or
103his or her designee.
104     2.  The Secretary of Environmental Protection, or his or
105her designee.
106     3.  Two members appointed by the Governor, both of whom are
107residential electric utility customers and one of whom has
108experience relating to low-income housing concerns.
109     4.  Two members appointed by the President of the Senate,
110both of whom are members of the Senate and one of whom is a
111member of the minority party.
112     5.  Two members appointed by the Speaker of the House of
113Representatives, both of whom are members of the House of
114Representatives and one of whom is a member of the minority
116     6.  One member appointed by the Chief Financial Officer who
117has experience related to renewable energy business or
118commercial investments.
119     (b)  The term of office of the board members shall be 3
120years, except those members of the Senate and the House of
121Representatives, who shall serve 2-year terms concurrent with
122the 2-year elected terms of House members. The terms of the
123initial appointees, except those members of the Senate and the
124House of Representatives, shall be for 1 year, 2 years, or 3
125years in order to achieve staggered terms. A member may be
126reappointed when his or her term expires. The head of the office
127or his or her designee shall serve as an ex officio member of
128the board of directors.
129     (c)  Members must be residents of this state. A majority of
130the members must be actively involved with sustainable and
131renewable energy systems and highly knowledgeable about the
132office, its research, and its mission. A member may be removed
133by the Governor, the President of the Senate, the Speaker of the
134House of Representatives, or the Chief Financial Officer for
135cause and with the approval of a majority of the members of the
136board of directors. A vacancy shall be filled in the same manner
137as the initial appointment.
138     (d)  The direct-support organization shall operate under a
139written contract with the office. The written contract must
140provide for:
141     1.  Certification by the office that the direct-support
142organization is complying with the terms of the contract and is
143doing so consistent with the goals and purposes of the
144department and in the best interests of the state. This
145certification must be made annually and reported in the official
146minutes of a meeting of the direct-support organization.
147     2.  The reversion of moneys and property held by the
148direct-support organization:
149     a.  To the office, if the direct-support organization is no
150longer approved to operate for the office or if the direct
151support organization ceases to exist; or
152     b.  To the state, if the office ceases to exist.
153     3.  The disclosure of the material provisions of the
154contract and the distinction between the office and the direct-
155support organization to donors of gifts, contributions, or
156bequests, including such disclosure on all promotional and
157fundraising publications.
158     (e)1.  The office may permit the use of its property,
159facilities, and personal services by the direct-support
160organization, subject to this section.
161     2.  The office may prescribe by contract any condition with
162which the direct-support organization must comply in order to
163use property, facilities, or personal services of the office.
164     3.  The office may not permit the use of its property,
165facilities, or personal services by any direct-support
166organization organized under this section which does not provide
167equal employment opportunities to all persons regardless of
168race, color, national origin, gender, age, or religion.
169     (f)  Any transaction or agreement between the direct-
170support organization created by this section and another direct-
171support organization or other entity must be approved by the
173     (g)  All moneys received by the direct-support organization
174from federal and state grants, private contributions, and the
175Sustainable and Renewable Energy Policy Trust Fund shall be
176deposited into an account of the direct-support organization.
177The direct-support organization shall use the collected charges
178to support funding for sustainable and renewable energy
179projects, including, but not limited to, grants to provide
180funding in the following order of priority:
181     1.  Any backlog of approved rebate applications for the
182Solar Energy Systems Incentive Program.
183     2.  The implementation of innovation to market projects,
184with specific attention directed toward the number of in-state
185jobs created.
186     3.  Energy conservation and energy efficiency projects,
187with specific attention directed to projects for low-income
188housing, including rental units, rental homes, condominiums, and
189single-family homes.
190     (h)1.  The fiscal year of the direct-support organization
191shall begin on July 1 of each year and end on June 30 of the
192following year.
193     2.  The direct-support organization shall submit to the
194office its federal Internal Revenue Service Application for
195Recognition of Exemption form and its federal Internal Revenue
196Service Return of Organization Exempt from Income Tax form.
197     (i)  The direct-support organization shall provide for an
198annual financial audit in accordance with s. 215.981, Florida
200     Section 2.  Subsection (3) of section 366.91, Florida
201Statutes, is amended to read:
202     366.91  Renewable energy.-
203     (3)  On or before January 1, 2006, each public utility must
204continuously offer a purchase contract to producers of renewable
205energy. The commission shall establish requirements relating to
206the purchase of capacity and energy by public utilities from
207renewable energy producers and may adopt rules to administer
208this section. The contract shall contain payment provisions for
209energy and capacity which are based upon the utility's
210equivalent cost-recovery rate for projects constructed pursuant
211to s. 366.92(4) full avoided costs, as defined in s. 366.051;
212however, capacity payments are not required if, due to the
213operational characteristics of the renewable energy generator or
214the anticipated peak and off-peak availability and capacity
215factor of the utility's avoided unit, the producer is unlikely
216to provide any capacity value to the utility or the electric
217grid during the contract term. Each contract must provide a
218contract term of at least 10 years. Prudent and reasonable costs
219associated with a renewable energy contract shall be recovered
220from the ratepayers of the contracting utility, without
221differentiation among customer classes, through the appropriate
222cost-recovery clause mechanism administered by the commission.
223     Section 3.  Subsection (1) and paragraph (b) of subsection
224(2) of section 377.806, Florida Statutes, are amended to read:
225     377.806  Solar Energy System Incentives Program.-
226     (1)  PURPOSE.-The Solar Energy System Incentives Program is
227established within the commission to provide financial
228incentives for the purchase and installation of solar energy
229systems. Any resident of the state who purchases and installs a
230new solar energy system of 2 kilowatts or larger for a solar
231photovoltaic system, a solar energy system that provides at
232least 50 percent of a building's hot water consumption for a
233solar thermal system, or a solar thermal pool heater, from July
2341, 2006, through June 30, 2015 2010, is eligible for a rebate on
235a portion of the purchase price of that solar energy system.
237     (b)  Rebate amounts.-The rebate amount shall be set at
238$2.50 $4 per watt for the first year, $2 per watt for the second
239and third years, and $1.50 per watt for each subsequent year,
240based on the total wattage rating of the system. The maximum
241allowable rebate per solar photovoltaic system installation
242shall be as follows:
243     1.  Twenty thousand dollars for a residence.
244     2.  One hundred thousand dollars for a place of business, a
245publicly owned or operated facility, or a facility owned or
246operated by a private, not-for-profit organization, including
247condominiums or apartment buildings.
248     Section 4.  This act shall take effect July 1, 2010.

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