Florida Senate - 2011                                    SB 1102
       By Senator Detert
       23-00021-11                                           20111102__
    1                        A bill to be entitled                      
    2         An act relating to energy; amending s. 366.92, F.S.;
    3         revising definitions and providing additional
    4         definitions; requiring that electric utilities meet or
    5         exceed specified standards for the production or
    6         purchase of clean energy; establishing a schedule for
    7         compliance; providing a penalty if a utility fails to
    8         meet the standards; authorizing the Public Service
    9         Commission to exempt certain electric utilities from
   10         compliance under specified conditions; requiring that
   11         the commission adopt rules; requiring an annual report
   12         to the Legislature; amending s. 366.93, F.S.;
   13         authorizing the Public Service Commission to allow a
   14         utility to recover the costs of converting an existing
   15         fossil fuel plant to a biomass plant under certain
   16         conditions; encouraging utilities to pursue joint
   17         ownership of nuclear power plants; requiring that
   18         certain costs be shared; creating s. 366.99, F.S.;
   19         providing a short title; providing legislative
   20         findings with respect to the need to reduce greenhouse
   21         gas emissions through the direct end-use of natural
   22         gas; defining terms; authorizing a utility to
   23         establish a surcharge for the purpose of constructing
   24         natural gas installations in areas that lack natural
   25         gas service; providing limitations on the surcharge;
   26         providing procedures for determining the surcharge and
   27         making filings to the commission; requiring that the
   28         commission conduct limited proceedings to determine
   29         the amount of the surcharge; providing for future
   30         expiration of provisions authorizing the surcharge;
   31         amending s. 377.6015, F.S.; providing that terms for
   32         members of the Florida Energy and Climate Commission
   33         begin and end on specified dates; deleting an obsolete
   34         provision; amending s. 377.705, F.S.; requiring that
   35         the Solar Energy Center charge testing fees; directing
   36         the Florida Building Commission to make all changes to
   37         the building and energy codes necessary to conform to
   38         the act; amending s. 403.503, F.S.; redefining the
   39         term “electrical power plant” to exclude solar
   40         electrical generating facilities; amending s. 525.09,
   41         F.S.; imposing a fee on alternative fuel containing
   42         alcohol; requiring that the Florida Energy and Climate
   43         Commission prepare a report identifying ways to
   44         increase the energy-efficiency practices of low-income
   45         households; requiring that the report include certain
   46         determinations and recommendations and be submitted to
   47         the Legislature by a specified date; providing for the
   48         extension of the appointment of a commissioner on the
   49         Florida Energy and Climate Commission if he or she is
   50         not confirmed during the 2011 Regular Session or the
   51         2012 Regular Session; requiring that the Florida
   52         Energy and Climate Commission obtain the approval of
   53         the joint Legislative Budget Commission before
   54         spending or disbursing any funds received from the
   55         Federal Government as part of a federal stimulus
   56         package; providing an effective date.
   58  Be It Enacted by the Legislature of the State of Florida:
   60         Section 1. Section 366.92, Florida Statutes, is amended to
   61  read:
   62         366.92 Florida clean and renewable energy policy.—
   63         (1) It is the intent of the Legislature to promote the
   64  development of clean and renewable energy; protect the economic
   65  viability of Florida’s existing renewable energy facilities;
   66  diversify the types of fuel used to generate electricity in
   67  Florida; lessen Florida’s dependence on natural gas and fuel oil
   68  for the production of electricity; minimize the volatility of
   69  fuel costs; encourage investment within the state; improve
   70  environmental conditions; and, at the same time, minimize the
   71  costs of power supply to electric utilities and their customers.
   72         (2) As used in this section, the term:
   73         (a) “Class I clean energy source” means Florida clean
   74  energy resources derived from wind or solar photovoltaic
   75  systems.
   76         (b) “Class II clean energy source” means clean energy
   77  derived from Florida clean energy resources other than class I
   78  clean energy sources or class III clean energy sources.
   79         (c) “Class III clean energy source” means clean energy
   80  derived from nuclear energy or any fossil fuel generation for
   81  which carbon capture and sequestration plans have been approved
   82  by the Department of Environmental Protection or from use of
   83  pipeline-quality synthetic gas produced by processing waste
   84  petroleum coke with carbon capture and sequestration plans
   85  approved by the state or federal authority having jurisdiction.
   86         (d) “Clean energy” means electrical energy produced from a
   87  method that uses one or more of the following fuels or energy
   88  sources: nuclear energy placed in commercial service on or after
   89  July 1, 2011, any fossil fuel generation for which carbon
   90  capture and sequestration plans have been approved by the
   91  Department of Environmental Protection, hydrogen produced from
   92  sources other than fossil fuels, biomass, solar photovoltaic,
   93  geothermal energy, wind energy, ocean energy, or hydroelectric
   94  power. The term includes waste heat from sulfuric acid
   95  manufacturing operations; waste heat thermal energy produced by
   96  a combined heat and power system placed in service in this state
   97  on or after July 1, 2011, and used to produce biofuel and any
   98  associated coproducts; energy produced using pipeline-quality
   99  synthetic gas produced by processing waste petroleum coke with
  100  carbon capture and sequestration plans approved by the state or
  101  federal authority having jurisdiction; and energy produced using
  102  biodiesel.
  103         (e) “Combined heat and power system” means a system that
  104  simultaneously or sequentially generates electricity and thermal
  105  energy from the same primary energy source.
  106         (f)(a) “Florida clean renewable energy resources” means
  107  clean renewable energy, as defined in s. 377.803, that is
  108  produced in Florida.
  109         (g)(b) “Provider” means a “utility” as defined in s.
  110  366.8255(1)(a).
  111         (c) “Renewable energy” means renewable energy as defined in
  112  s. 366.91(2)(d).
  113         (h)(d) “Clean Renewable energy credit” or “REC” means a
  114  product that represents the unbundled, separable, clean
  115  renewable attribute of clean renewable energy produced in
  116  Florida and is equivalent to 1 megawatt-hour of electricity
  117  generated by a source of clean renewable energy located in
  118  Florida. For combined heat and power systems placed in service
  119  in this state on or after July 1, 2011, one clean energy credit
  120  shall be produced for every 3.412 million British thermal units
  121  of waste heat thermal energy used to produce biofuel and any
  122  associated coproducts.
  123         (i)(e) “Clean Renewable portfolio standard” or “RPS” means
  124  the minimum percentage of total annual retail electricity sales
  125  by a public utility a provider to consumers in Florida which is
  126  that shall be supplied by clean renewable energy or through the
  127  purchase of clean energy credits from clean energy produced in
  128  Florida.
  129         (3)(a) Each public utility must meet or exceed the
  130  following clean portfolio standards through the production of
  131  clean energy or the purchase of clean energy credits:
  132         1. By January 1, 2015, 7 percent of the previous years’
  133  retail electricity sales;
  134         2. By January 1, 2018, 12 percent of the previous years’
  135  retail electricity sales;
  136         3. By January 1, 2021, 18 percent of the previous years’
  137  retail electricity sales; and
  138         4. By January 1, 2023, 20 percent of the previous years’
  139  retail electricity sales.
  141  No more than 25 percent of the amount of the clean portfolio
  142  standard requirement for each year may be from Class III clean
  143  energy sources. For the production or procurement of Class III
  144  clean energy, a Florida utility that is a member of the
  145  Southeastern Electric Reliability Council may co-own or purchase
  146  energy from a Class III clean energy source located in another
  147  state and owned by an affiliate in a holding company having
  148  multistate dispatch.
  149         (b) Except as otherwise provided in this section, an
  150  investor-owned electric utility that fails to meet or exceed its
  151  clean portfolio standard is subject to a penalty pursuant to s.
  152  366.095 for each day such failure continues, and the penalty may
  153  not be recovered from the utility’s ratepayers. An electric
  154  utility may not be required to produce or purchase any Class III
  155  clean energy, or be fined or deemed imprudent for not acquiring
  156  any energy from a Class III clean energy source in order to
  157  achieve the clean energy standards provided in this section.
  158         (c) The commission shall excuse an investor-owned electric
  159  utility from compliance with the clean portfolio standard if:
  160         1. The supply of clean energy and clean energy credits is
  161  not adequate to satisfy the clean portfolio standard; or
  162         2. The cost of producing clean energy or purchasing clean
  163  energy credits is prohibitive in that the total costs of
  164  compliance with the clean portfolio standard exceeds 2 percent
  165  of the investor-owned electric utility’s total annual revenue
  166  from retail sales of electricity.
  167         (d) The cost of compliance with the clean portfolio
  168  standards includes:
  169         1. The costs associated with the purchase of clean energy
  170  credits;
  171         2. The costs paid by the utility which are associated with
  172  the clean energy credit market; and
  173         3. The utility’s costs of its self-build Florida clean
  174  energy resource which exceed the costs to the utility of the
  175  generation source it would have otherwise built or the energy or
  176  capacity, or both, it would have purchased from another source.
  178  Expenses for Class III clean energy sources may not be included
  179  in calculating the cost of compliance.
  180         (e) The cost of compliance must be allocated separately for
  181  Class I and Class II clean energy sources and, for each class,
  182  the total cost of compliance is prohibitive if the costs exceed
  183  1 percent of the investor-owned electric utility’s total annual
  184  revenue from retail sales of electricity.
  185         (f) Each investor-owned electric utility seeking to
  186  construct a Florida clean energy project must select the
  187  technology and project most likely to be cost-effective for the
  188  general body of ratepayers for that class of clean energy
  189  technology. In determining the most cost-effective construction
  190  option and in purchasing clean energy credits, an investor-owned
  191  utility shall seek the least-cost alternatives within each class
  192  of clean energy sources. The method of determining the least
  193  cost alternative shall be determined by the commission and may
  194  include requests for proposals, auctions, or other methods.
  195         (g) A clean energy credit remains the property of the owner
  196  of the clean energy resource from which it was derived until it
  197  is sold or transferred.
  198         (4)(3) The commission shall adopt rules providing
  199  requirements for:
  200         (a) Implementing the clean a renewable portfolio standard.
  201         (b) Determining the method of establishing least-cost
  202  options for the construction of facilities or the purchase of
  203  clean energy credits.
  204         (c) Determining what entities are eligible to produce clean
  205  energy credits.
  206         (d) Establishing the method for the recovery of costs or
  207  expenses prudently incurred to meet the clean portfolio standard
  208  as those costs are defined in paragraph (3)(d). The commission
  209  may allow cost recovery through a separate cost-recovery clause
  210  or a limited scope proceeding. The costs of compliance with the
  211  clean portfolio standard must appear as a separate line item on
  212  each customer’s bill.
  213         (e) Filing reports concerning compliance by utilities with
  214  the clean portfolio standard.
  215         (f) Creating a clean energy credit market requiring each
  216  provider to supply renewable energy to its customers directly,
  217  by procuring, or through renewable energy credits. In developing
  218  the RPS rule, the commission shall consult the Department of
  219  Environmental Protection and the Florida Energy and Climate
  220  Commission. The rule shall not be implemented until ratified by
  221  the Legislature. The commission shall present a draft rule for
  222  legislative consideration by February 1, 2009.
  223         (a) In developing the rule, the commission shall evaluate
  224  the current and forecasted levelized cost in cents per kilowatt
  225  hour through 2020 and current and forecasted installed capacity
  226  in kilowatts for each renewable energy generation method through
  227  2020.
  228         (b) The commission’s rule:
  229         1. Shall include methods of managing the cost of compliance
  230  with the renewable portfolio standard, whether through direct
  231  supply or procurement of renewable power or through the purchase
  232  of renewable energy credits. The commission shall have
  233  rulemaking authority for providing annual cost recovery and
  234  incentive-based adjustments to authorized rates of return on
  235  common equity to providers to incentivize renewable energy.
  236  Notwithstanding s. 366.91(3) and (4), upon the ratification of
  237  the rules developed pursuant to this subsection, the commission
  238  may approve projects and power sales agreements with renewable
  239  power producers and the sale of renewable energy credits needed
  240  to comply with the renewable portfolio standard. In the event of
  241  any conflict, this subparagraph shall supersede s. 366.91(3) and
  242  (4). However, nothing in this section shall alter the obligation
  243  of each public utility to continuously offer a purchase contract
  244  to producers of renewable energy.
  245         2. Shall provide for appropriate compliance measures and
  246  the conditions under which noncompliance shall be excused due to
  247  a determination by the commission that the supply of renewable
  248  energy or renewable energy credits was not adequate to satisfy
  249  the demand for such energy or that the cost of securing
  250  renewable energy or renewable energy credits was cost
  251  prohibitive.
  252         3. May provide added weight to energy provided by wind and
  253  solar photovoltaic over other forms of renewable energy, whether
  254  directly supplied or procured or indirectly obtained through the
  255  purchase of renewable energy credits.
  256         4. Shall determine an appropriate period of time for which
  257  renewable energy credits may be used for purposes of compliance
  258  with the renewable portfolio standard.
  259         5. Shall provide for monitoring of compliance with and
  260  enforcement of the requirements of this section.
  261         6. Shall ensure that energy credited toward compliance with
  262  the requirements of this section is not credited toward any
  263  other purpose.
  264         7. Shall include procedures to track and account for
  265  renewable energy credits, including ownership of renewable
  266  energy credits that are derived from a customer-owned renewable
  267  energy facility as a result of any action by a customer of an
  268  electric power supplier that is independent of a program
  269  sponsored by the electric power supplier.
  270         8. Shall provide for the conditions and options for the
  271  repeal or alteration of the rule in the event that new
  272  provisions of federal law supplant or conflict with the rule.
  273         (c) Beginning on April 1 of the year following final
  274  adoption of the commission’s renewable portfolio standard rule,
  275  each provider shall submit a report to the commission describing
  276  the steps that have been taken in the previous year and the
  277  steps that will be taken in the future to add renewable energy
  278  to the provider’s energy supply portfolio. The report shall
  279  state whether the provider was in compliance with the renewable
  280  portfolio standard during the previous year and how it will
  281  comply with the renewable portfolio standard in the upcoming
  282  year.
  283         (5) By February 1, 2012, and each year thereafter, the
  284  commission shall submit a report to the Legislature detailing
  285  further rulemaking activities, developments in the production of
  286  clean energy, how much and what types of clean energy are
  287  available in various regions of the state and at what cost, and
  288  any impediments to further increases in the production of clean
  289  energy in this state.
  290         (6)(4) In order to demonstrate the feasibility and
  291  viability of clean energy systems, the commission shall provide
  292  for full cost recovery under the environmental cost-recovery
  293  clause of all reasonable and prudent costs incurred by a
  294  provider for renewable energy projects that are zero greenhouse
  295  gas emitting at the point of generation, up to a total of 110
  296  megawatts statewide, and for which the provider has secured
  297  necessary land, zoning permits, and transmission rights within
  298  the state. Such costs shall be deemed reasonable and prudent for
  299  purposes of cost recovery so long as the provider has used
  300  reasonable and customary industry practices in the design,
  301  procurement, and construction of the project in a cost-effective
  302  manner appropriate to the location of the facility. The provider
  303  shall report to the commission as part of the cost-recovery
  304  proceedings the construction costs, in-service costs, operating
  305  and maintenance costs, hourly energy production of the renewable
  306  energy project, and any other information deemed relevant by the
  307  commission. Any provider constructing a clean energy facility
  308  pursuant to this section shall file for cost recovery no later
  309  than July 1, 2009.
  310         (7)(5) Each municipal electric utility and rural electric
  311  cooperative shall develop standards for the promotion,
  312  encouragement, and expansion of the use of renewable energy
  313  resources and energy conservation and efficiency measures. On or
  314  before April 1, 2009, and annually thereafter, each municipal
  315  electric utility and electric cooperative shall submit to the
  316  commission a report that identifies such standards.
  317         (8)(6)Nothing in This section does not shall be construed
  318  to impede or impair terms and conditions of existing contracts.
  319         (9)(7) The commission may adopt rules to administer and
  320  implement the provisions of this section.
  321         Section 2. Subsection (4) of section 366.93, Florida
  322  Statutes, is amended, and subsection (7) is added to that
  323  section, to read:
  324         366.93 Cost recovery for the siting, design, licensing, and
  325  construction of nuclear and integrated gasification combined
  326  cycle power plants.—
  327         (4) When the nuclear or integrated gasification combined
  328  cycle power plant is placed in commercial service, the utility
  329  shall be allowed to increase its base rate charges by the
  330  projected annual revenue requirements of the nuclear or
  331  integrated gasification combined cycle power plant based on the
  332  jurisdictional annual revenue requirements of the plant for the
  333  first 12 months of operation. The rate of return on capital
  334  investments shall be calculated using the utility’s rate of
  335  return last approved by the commission prior to the commercial
  336  inservice date of the nuclear or integrated gasification
  337  combined cycle power plant. If any existing generating plant is
  338  retired as a result of operation of the nuclear or integrated
  339  gasification combined cycle power plant, the commission shall
  340  allow for the recovery, through an increase in base rate
  341  charges, of the net book value of the retired plant over a
  342  period not to exceed 5 years or, if the commission determines
  343  that it would be more cost-effective to convert the existing
  344  generating plant to a biomass plant, allow for the recovery of
  345  the costs of conversion in base rate charges over a period that
  346  is determined by the commission.
  347         (7) In order to further promote the development of nuclear
  348  electrical generation and minimize the financial risk to any one
  349  utility associated with the construction of a nuclear power
  350  plant, electric utilities in this state are encouraged to pursue
  351  the joint ownership of nuclear power plants.
  352         Section 3. Section 366.99, Florida Statutes, is created to
  353  read:
  354         366.99 Natural gas delivery; surcharge for carbon
  355  reduction.—
  356         (1) This section may be cited as the “Natural Gas Act.”
  357         (2) It is the intent of the Legislature to promote the
  358  expanded direct end-use of natural gas for its inherent energy
  359  efficiency and environmental benefits.
  360         (3) As used in this section, the term “eligible
  361  installations” means natural gas utility facilities that:
  362         (a) Connect supply sources of natural gas to a distribution
  363  system that serves primarily residential customers;
  364         (b) Are in service and used and useful in providing utility
  365  service;
  366         (c) Were not included in the utility’s rate base for
  367  purposes of determining the utility’s base rate in the most
  368  recent general base-rate proceedings; and
  369         (d) Consist of mains that are greater than or equal to 4
  370  inches in diameter or that are certified to operate at a maximum
  371  allowable operating pressure greater than 60 pounds per square
  372  inch gauge, together with associated valves, regulator stations,
  373  vaults, transmission line taps, and other pipeline system
  374  components.
  375         (4) Notwithstanding any provision in this chapter or rule
  376  to the contrary, a public utility, as defined in s. 366.02,
  377  which provides natural gas service may petition the commission
  378  to establish or modify a carbon-reduction surcharge to be used
  379  to construct eligible installations in areas of this state which
  380  are unserved or underserved with natural gas service. The
  381  surcharge shall be recovered through a cost-recovery clause,
  382  separate and distinct from a utility’s base rates, using the
  383  same allocation methodology applicable to the utility’s recovery
  384  of costs recoverable pursuant to the Energy Conservation Cost
  385  Recovery Rule, rule 25-17.015, Florida Administrative Code. The
  386  purpose of the surcharge is to recover the utility’s revenue
  387  requirement relevant to construction of the eligible
  388  installations and shall be in the amount of the pretax revenues
  389  equal to:
  390         (a) The utility’s weighted average cost of capital allowed
  391  in the most recent rate proceeding multiplied by the 13-month
  392  average net book value of eligible installations, including
  393  recognition of accumulated depreciation associated with eligible
  394  installations;
  395         (b) State, federal, and local income taxes;
  396         (c) Ad valorem taxes; and
  397         (d) Depreciation expenses on eligible installations.
  398         (5) When a petition is filed by a utility, the commission
  399  shall conduct a limited proceeding and determine the utility’s
  400  revenue requirements and the surcharge to be charged in the
  401  following year.
  402         (6) The petition must contain:
  403         (a) An estimation of the utility’s revenue requirements and
  404  carbon-reduction surcharge collections for the following year.
  405         (b) If a carbon-reduction surcharge has previously been
  406  established, an annual true-up filing showing the actual
  407  eligible installation costs and actual carbon-reduction
  408  surcharge revenues for the most recent 12-month period from
  409  January 1 through December 31 which ends before the annual
  410  petition filing, including a comparison of the actual eligible
  411  installation costs and carbon-reduction surcharge revenues to
  412  the estimated total eligible installation costs and carbon
  413  reduction surcharge revenues previously reported for the same
  414  period. The filing shall also include the over recovery or under
  415  recovery of total carbon-reduction surcharge revenue
  416  requirements for the true-up period.
  417         (7) The utility shall establish separate accounts or
  418  subaccounts for each eligible installation for purposes of
  419  recording the costs incurred for each project. The utility shall
  420  also establish a separate account or subaccount for any revenues
  421  derived from specific carbon-reduction surcharges.
  422         (8) An eligible installation shall be included for the
  423  purposes of calculating revenue requirements for no more than 5
  424  years.
  425         (9) The total amount of carbon-reduction surcharge revenue
  426  in effect in any one year may not exceed 2 percent of the
  427  utility’s total annual nonfuel revenue for the previous year.
  428         (10) This section expires December 31, 2016, unless
  429  reviewed and reenacted by the Legislature before that date.
  430  However, the procedures and other applicable provisions in this
  431  section and the carbon-reduction surcharges approved pursuant to
  432  this section shall remain in effect for the full term of all
  433  eligible installations approved by the commission before
  434  December 31, 2016.
  435         Section 4. Paragraph (a) of subsection (1) of section
  436  377.6015, Florida Statutes, is amended to read:
  437         377.6015 Florida Energy and Climate Commission.—
  438         (1) The Florida Energy and Climate Commission is created
  439  within the Executive Office of the Governor. The commission
  440  shall be comprised of nine members appointed by the Governor,
  441  the Commissioner of Agriculture, and the Chief Financial
  442  Officer.
  443         (a) The Governor shall appoint one member from three
  444  persons nominated by the Florida Public Service Commission
  445  Nominating Council, created in s. 350.031, to each of seven
  446  seats on the commission. The Commissioner of Agriculture shall
  447  appoint one member from three persons nominated by the council
  448  to one seat on the commission. The Chief Financial Officer shall
  449  appoint one member from three persons nominated by the council
  450  to one seat on the commission.
  451         1. The council shall submit the recommendations to the
  452  Governor, the Commissioner of Agriculture, and the Chief
  453  Financial Officer by September 1 of those years in which the
  454  terms are to begin the following October or within 60 days after
  455  a vacancy occurs for any reason other than the expiration of the
  456  term. The Governor, the Commissioner of Agriculture, and the
  457  Chief Financial Officer may proffer names of persons to be
  458  considered for nomination by the council.
  459         2. The Governor, the Commissioner of Agriculture, and the
  460  Chief Financial Officer shall fill a vacancy occurring on the
  461  commission by appointment of one of the applicants nominated by
  462  the council only after a background investigation of such
  463  applicant has been conducted by the Department of Law
  464  Enforcement.
  465         3. Members shall be appointed to 3-year terms; however, in
  466  order to establish staggered terms, for the initial
  467  appointments, the Governor shall appoint four members to 3-year
  468  terms, two members to 2-year terms, and one member to a 1-year
  469  term, and the Commissioner of Agriculture and the Chief
  470  Financial Officer shall each appoint one member to a 3-year term
  471  and shall appoint a successor when that appointee’s term expires
  472  in the same manner as the original appointment. The terms of
  473  members shall begin on October 1 and end on September 30.
  474         4. The Governor shall select from the membership of the
  475  commission one person to serve as chair.
  476         5. A vacancy on the commission shall be filled for the
  477  unexpired portion of the term in the same manner as the original
  478  appointment.
  479         6. If the Governor, the Commissioner of Agriculture, or the
  480  Chief Financial Officer has not made an appointment within 30
  481  consecutive calendar days after the receipt of the
  482  recommendations, the council shall initiate, in accordance with
  483  this section, the nominating process within 30 days.
  484         7. Each appointment to the commission shall be subject to
  485  confirmation by the Senate during the next regular session after
  486  the vacancy occurs. If the Senate refuses to confirm or fails to
  487  consider the appointment of the Governor, the Commissioner of
  488  Agriculture, or the Chief Financial Officer, the council shall
  489  initiate, in accordance with this section, the nominating
  490  process within 30 days.
  491         8. The Governor or the Governor’s successor may recall an
  492  appointee.
  493         9. Notwithstanding subparagraph 7. and for the initial
  494  appointments to the commission only, each initial appointment to
  495  the commission is subject to confirmation by the Senate by the
  496  2010 Regular Session. If the Senate refuses to confirm or fails
  497  to consider an appointment made by the Governor, the
  498  Commissioner of Agriculture, or the Chief Financial Officer, the
  499  council shall initiate, in accordance with this section, the
  500  nominating process within 30 days after the Senate’s refusal to
  501  confirm or failure to consider such appointment. This
  502  subparagraph expires July 1, 2010.
  503         Section 5. Section 377.705, Florida Statutes, is amended to
  504  read:
  505         377.705 Solar Energy Center; development of solar energy
  506  standards.—
  507         (1) SHORT TITLE.—This section act shall be known and may be
  508  cited as the Solar Energy Standards Act.” of 1976.
  510         (a) Because of increases in the cost of conventional fuel,
  511  certain applications of solar energy are becoming competitive,
  512  particularly when life-cycle costs are considered. It is the
  513  intent of the Legislature in formulating a sound and balanced
  514  energy policy for the state to encourage the development of an
  515  alternative energy capability in the form of incident solar
  516  energy.
  517         (b) Toward this purpose, the Legislature intends to provide
  518  incentives for the production and sale of, and to set standards
  519  for, solar energy systems. Such standards must shall ensure that
  520  solar energy systems manufactured or sold within the state are
  521  effective and represent a high level of quality of materials,
  522  workmanship, and design.
  523         (3) DEFINITIONS.—As used in this section, the term:
  524         (a) “Center” means is defined as the Florida Solar Energy
  525  Center of the Board of Governors.
  526         (b) “Solar energy systems” means is defined as equipment
  527  that which provides for the collection and use of incident solar
  528  energy for water heating, space heating or cooling, or other
  529  applications that which normally require or would require a
  530  conventional source of energy such as petroleum products,
  531  natural gas, or electricity, and that which performs primarily
  532  with solar energy. In such other systems in which solar energy
  533  is used in a supplemental way, only those components that which
  534  collect and transfer solar energy are shall be included in this
  535  definition.
  538         (a) The center shall develop and promulgate standards for
  539  solar energy systems manufactured or sold in this state based on
  540  the best currently available information and shall consult with
  541  scientists, engineers, or persons in research centers who are
  542  engaged in the construction of, experimentation with, and
  543  research of solar energy systems to properly identify the most
  544  reliable designs and types of solar energy systems.
  545         (b) The center shall select nationally recognized standards
  546  for solar energy systems, establish criteria for testing the
  547  performance of solar energy systems, and shall maintain the
  548  necessary capability for testing or evaluating the performance
  549  of solar energy systems. The center may accept results of tests
  550  on solar energy systems made by other organizations, companies,
  551  or persons when such tests are conducted according to the
  552  criteria established by the center and when the testing entity
  553  has no vested interest in the manufacture, distribution or sale
  554  of solar energy systems.
  555         (5)(c)FEES.-The center shall charge be entitled to receive
  556  a testing fee sufficient to cover the costs of such testing. All
  557  testing fees shall be transmitted by the center to the Chief
  558  Financial Officer to be deposited in the Solar Energy Center
  559  Testing Trust Fund, which is hereby created in the State
  560  Treasury, and disbursed for the payment of expenses incurred in
  561  testing solar energy systems.
  562         (6)(d)TEST RESULTS.—All solar energy systems manufactured
  563  or sold in the state must meet the nationally recognized
  564  standards selected established by the center and shall display
  565  accepted results of approved performance tests in a manner
  566  prescribed by the center.
  567         Section 6. The Florida Building Commission shall make all
  568  changes to the building and energy codes necessary to conform
  569  such rules to this act.
  570         Section 7. Subsection (14) of section 403.503, Florida
  571  Statutes, is amended to read:
  572         403.503 Definitions relating to Florida Electrical Power
  573  Plant Siting Act.—As used in this act:
  574         (14) “Electrical power plant” means, for the purpose of
  575  certification, any steam or solar electrical generating facility
  576  using any process or fuel, including nuclear materials, except
  577  that this term does not include any steam or solar electrical
  578  generating facility of less than 75 megawatts in capacity unless
  579  the applicant for such a facility elects to apply for
  580  certification under this act. This term also includes the site;
  581  all associated facilities that will be owned by the applicant
  582  that are physically connected to the site; all associated
  583  facilities that are indirectly connected to the site by other
  584  proposed associated facilities that will be owned by the
  585  applicant; and associated transmission lines that will be owned
  586  by the applicant which connect the electrical power plant to an
  587  existing transmission network or rights-of-way to which the
  588  applicant intends to connect. At the applicant’s option, this
  589  term may include any offsite associated facilities that will not
  590  be owned by the applicant; offsite associated facilities that
  591  are owned by the applicant but that are not directly connected
  592  to the site; any proposed terminal or intermediate substations
  593  or substation expansions connected to the associated
  594  transmission line; or new transmission lines, upgrades, or
  595  improvements of an existing transmission line on any portion of
  596  the applicant’s electrical transmission system necessary to
  597  support the generation injected into the system from the
  598  proposed electrical power plant.
  599         Section 8. Subsections (1) and (3) of section 525.09,
  600  Florida Statutes, are amended to read:
  601         525.09 Inspection fee.—
  602         (1) For the purpose of defraying the expenses incident to
  603  inspecting, testing, and analyzing petroleum fuels in this
  604  state, there shall be paid to the department a charge of one
  605  eighth cent per gallon on all gasoline, alternative fuel
  606  containing alcohol as defined in s. 525.01(1)(c)1. or 2.,
  607  kerosene that is not (except when used as aviation turbine
  608  fuel), and #1 fuel oil for sale or use in this state. This
  609  inspection fee shall be imposed in the same manner as the motor
  610  fuel tax pursuant to s. 206.41. Payment shall be made on or
  611  before the 25th day of each month.
  612         (3) All remittances to the department for the inspection
  613  tax herein provided shall be accompanied by a detailed report
  614  under oath showing the number of gallons of gasoline,
  615  alternative fuel containing alcohol as defined in s.
  616  525.01(1)(c)1. or 2., kerosene, or fuel oil sold and delivered
  617  in each county.
  618         Section 9. (1) The Florida Energy and Climate Commission
  619  shall prepare a report that:
  620         (a) Identifies methods of increasing energy-efficiency
  621  practices among low-income households as defined in ss. 420.9071
  622  and 421.03, Florida Statutes. The commission shall, at a
  623  minimum, identify energy-efficiency programs that are currently
  624  offered to low-income households by community action agencies,
  625  community-based organizations, and utility companies in this
  626  state and similar programs that are offered to low-income
  627  households in other states.
  628         (b) Determines the statewide impact of improving the level
  629  of the energy efficiency of rental housing stock, including, but
  630  not limited to, the environmental benefits of such improvements
  631  and the potential fiscal impact with respect to property
  632  tenants, owners, and landlords and to the economy. The
  633  commission shall consider the relative equity and economic
  634  efficiency of the cost share for such energy-efficiency
  635  improvements.
  636         (c) Provides recommendations for implementing energy
  637  efficiency practices among residents of low-income households.
  638         (2) The commission shall submit the report to the President
  639  of the Senate and the Speaker of the House of Representatives by
  640  December 1, 2011.
  641         Section 10. The term of any person sitting as a member of
  642  the Florida Energy and Climate Commission on March 3, 2011,
  643  whose appointment is not confirmed by the Senate during the 2011
  644  Regular Session or the 2012 Regular Session, shall be extended
  645  until completion of the 2012 Regular Session, except for any
  646  member who, during that time, the Senate expressly refuses to
  647  confirm.
  648         Section 11. The Florida Energy and Climate Commission must
  649  obtain the approval of the Legislative Budget Commission before
  650  spending or disbursing any funds received from the Federal
  651  Government as part of a federal stimulus package.
  652         Section 12. This act shall take effect July 1, 2011.