| 1 | A bill to be entitled |
| 2 | An act relating to local government energy zones; defining |
| 3 | terms; authorizing a local government to create an energy |
| 4 | zone by ordinance; authorizing retail sales by any |
| 5 | producer of renewable energy within an energy zone; |
| 6 | requiring utilities to offer a disconnectable rate |
| 7 | structure for any service to a producer and the producer's |
| 8 | customers within the boundaries of an energy zone; |
| 9 | providing for waiver of certain fees; requiring the Public |
| 10 | Service Commission to adopt rules to govern sales by |
| 11 | producers of renewable energy within the local government |
| 12 | energy zone; providing that a disconnectable rate |
| 13 | structure voids a specified concern; requiring that the |
| 14 | commission submit reports to the Legislature; amending s. |
| 15 | 366.02, F.S.; redefining a term to exempt producers and |
| 16 | sellers of renewable energy from economic regulation by |
| 17 | the Public Service Commission; providing an effective |
| 18 | date. |
| 19 |
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| 20 | Be It Enacted by the Legislature of the State of Florida: |
| 21 |
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| 22 | Section 1. Local government energy zones.- |
| 23 | (1) As used in this section, the term: |
| 24 | (a) "Local government" means a county or a municipality. |
| 25 | (b) "New customer" means a residential or business |
| 26 | location at which no previous sales of electricity have occurred |
| 27 | which are unrelated to development or construction of the |
| 28 | property. |
| 29 | (c) "Renewable energy" has the same meaning as provided in |
| 30 | s. 366.91, Florida Statutes. |
| 31 | (2) A local government may adopt an ordinance establishing |
| 32 | an energy zone within its political or geographic boundaries. |
| 33 | Within this energy zone, any producer of renewable energy may |
| 34 | sell renewable energy to any new customer directly at retail for |
| 35 | any price agreed upon. All renewable energy sold under this |
| 36 | section must be produced and used within the boundaries of the |
| 37 | energy zone or net metered into the grid of the utility that |
| 38 | serves the energy zone at established renewable energy rates. |
| 39 | The utility that serves the energy zone shall offer a |
| 40 | disconnectable rate structure for any service to a producer and |
| 41 | the producer's customers within the boundaries of the energy |
| 42 | zone. All producers of renewable energy sold pursuant to this |
| 43 | section must pay the utility that serves the energy zone 1 1/2 |
| 44 | cents per kilowatt hour of renewable energy produced and sold |
| 45 | unless the utility services to a producer and the producer's |
| 46 | customers are on a utility-controlled disconnectable rate |
| 47 | structure, in which case the payment of 1 1/2 cents per kilowatt |
| 48 | hour is waived. |
| 49 | (3) The Florida Public Service Commission shall adopt |
| 50 | rules to govern sales made pursuant to this section, and all |
| 51 | sales of renewable energy within an energy zone are subject to |
| 52 | the rules. When adopting such rules, the commission must |
| 53 | establish, at a minimum: |
| 54 | (a) Requirements related to interconnection and metering. |
| 55 | (b) A mechanism for setting rates for any service provided |
| 56 | to the consumer by the utility if such service is required by |
| 57 | the consumer, which rates must ensure that the utility's general |
| 58 | body of ratepayers does not subsidize the consumer in any way, |
| 59 | including the creation of any redundant utility generating |
| 60 | capacity necessary to serve the consumer. A utility-controlled |
| 61 | disconnectable rate structure for any service to the producer |
| 62 | and the producer's customers within the boundaries of an energy |
| 63 | zone voids the concern of redundant utility generating capacity. |
| 64 | (c) Requirements for notice to the commission of the size |
| 65 | and location of each renewable energy generation facility |
| 66 | planned under this section, the identity and historical and |
| 67 | projected load characteristics for the facility, and any other |
| 68 | information deemed necessary by the commission to satisfy its |
| 69 | obligations under s. 366.04(5), Florida Statutes. |
| 70 | (4) Beginning January 1, 2012, and at least once every 6 |
| 71 | months thereafter, the commission shall submit a report to the |
| 72 | Legislature concerning the activity under this section. The |
| 73 | report must address the effect of such activity on the electric |
| 74 | power grid of the state, the individual utility systems, and |
| 75 | each utility's general body of ratepayers. The report must also |
| 76 | include recommendations concerning implementation of this |
| 77 | program. |
| 78 | Section 2. Subsection (1) of section 366.02, Florida |
| 79 | Statutes, is amended to read: |
| 80 | 366.02 Definitions.-As used in this chapter: |
| 81 | (1) "Public utility" means every person, corporation, |
| 82 | partnership, association, or other legal entity and their |
| 83 | lessees, trustees, or receivers supplying electricity or gas, |
| 84 | whether (natural, manufactured, or similar gaseous substance,) |
| 85 | to or for the public within this state.; but The term "public |
| 86 | utility" does not include: either |
| 87 | (a) A cooperative now or hereafter organized and existing |
| 88 | under the Rural Electric Cooperative Law of the state.; |
| 89 | (b) A municipality or any agency thereof.; |
| 90 | (c) Any dependent or independent special natural gas |
| 91 | district.; |
| 92 | (d) Any natural gas transmission pipeline company making |
| 93 | only sales or transportation delivery of natural gas at |
| 94 | wholesale and to direct industrial consumers.; |
| 95 | (e) Any entity selling or arranging for sales of natural |
| 96 | gas which neither owns nor operates natural gas transmission or |
| 97 | distribution facilities within the state.; or |
| 98 | (f) A person supplying liquefied petroleum gas, in either |
| 99 | liquid or gaseous form, irrespective of the method of |
| 100 | distribution or delivery, or owning or operating facilities |
| 101 | beyond the outlet of a meter through which natural gas is |
| 102 | supplied for compression and delivery into motor vehicle fuel |
| 103 | tanks or other transportation containers, unless the such person |
| 104 | also supplies electricity or manufactured or natural gas. |
| 105 | (g) A producer and seller of renewable energy under |
| 106 | section 1 of this act. |
| 107 | Section 3. This act shall take effect July 1, 2011. |