HB 1349

1	A bill to be entitled
2	An act relating to renewable energy; amending s. 212.08,
3	F.S.; requiring that solar energy systems have a certain
4	percentage of components manufactured in Florida or the
5	United States in order to be eligible for the exemption
6	from the sales tax; amending s. 220.192, F.S.; extending
7	the date of eligibility for the renewable energy
8	technologies investment tax credit; revising the annual
9	limits for the investment tax credits; defining the term
10	"solar energy system"; providing requirement for a solar
11	electric generating facility to be eligible to receive the
12	tax credit; providing for unused amounts of the tax credit
13	to be carried forward; amending s. 220.193, F.S.;
14	extending until 2017 the Florida renewable energy
15	production tax credit; amending s. 366.02, F.S.; revising
16	the exceptions to the definition of the term "public
17	utility" to include the developer of certain renewable
18	energy generation facilities; creating s. 366.90, F.S.;
19	providing legislative intent with respect to the
20	production of electricity using renewable energy; amending
21	s. 366.91, F.S.; redefining the terms "biomass," "net
22	metering," and "renewable energy"; amending s. 366.92,
23	F.S.; revising legislative intent; deleting and revising
24	definitions; deleting provisions for the renewable
25	portfolio standard and renewable energy credits; providing
26	a mechanism for providers to recover costs to produce or
27	purchase specified amounts of renewable energy through the
28	environmental cost-recovery clause under certain
29	conditions; providing for a competitive auction; providing
30	for recovery of certain costs; providing for terms and
31	conditions of a standard form contract; providing criteria
32	for development deposits; providing criteria for
33	termination of the project; providing for required and
34	allowable purchase of renewable energy as a percentage of
35	the provider's total revenue; providing for minimum
36	purchase of the various types of renewable energy;
37	providing limits on the amount of recoverable costs;
38	requiring certain information be provided to the Public
39	Service Commission for cost recovery proceedings;
40	providing conditions when a seller surrenders attributes;
41	requiring that certain revenues received by a provider be
42	shared with ratepayers; exempting certain renewable energy
43	generating facilities from the Florida Electrical Power
44	Plant Siting Act; requiring providers to submit certain
45	information to the commission in their 10-year site plans;
46	exempting certain expansions of existing renewable
47	electric generating facilities from a determination of
48	need by the commission; authorizing the developer of a
49	solar energy generation facility to locate the facility on
50	the premises of a host consumer under certain
51	circumstances; requiring the commission to adopt rules and
52	submit reports to the Legislature; exempting the expansion
53	of existing renewable energy electric generating
54	facilities from requirements for a determination of need
55	under certain circumstances; amending s. 377.601, F.S.;
56	revising legislative intent relating to the state's energy
57	policy; amending s. 377.703, F.S.; conforming cross-
58	references; amending s. 377.809, F.S.; directing the
59	Department of Community Affairs to implement an Energy
60	Economic Zone Pilot Program for attracting renewable
61	energy, energy efficiency, and biofuel technology
62	industries to an area; requiring the Office of Tourism,
63	Trade, and Economic Development to provide technical
64	assistance; providing for an application process;
65	providing criteria to grant at least one application;
66	amending s. 403.503, F.S.; redefining the term "electrical
67	power plant" for purposes of the Florida Electrical Power
68	Plant Siting Act; providing for severability; providing an
69	effective date.
70
71	Be It Enacted by the Legislature of the State of Florida:
72
73	Section 1.  Paragraph (hh) of subsection (7) of section
74	212.08, Florida Statutes, is amended to read:
75	212.08  Sales, rental, use, consumption, distribution, and
76	storage tax; specified exemptions.-The sale at retail, the
77	rental, the use, the consumption, the distribution, and the
78	storage to be used or consumed in this state of the following
79	are hereby specifically exempt from the tax imposed by this
80	chapter.
81	(7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any
82	entity by this chapter do not inure to any transaction that is
83	otherwise taxable under this chapter when payment is made by a
84	representative or employee of the entity by any means,
85	including, but not limited to, cash, check, or credit card, even
86	when that representative or employee is subsequently reimbursed
87	by the entity. In addition, exemptions provided to any entity by
88	this subsection do not inure to any transaction that is
89	otherwise taxable under this chapter unless the entity has
90	obtained a sales tax exemption certificate from the department
91	or the entity obtains or provides other documentation as
92	required by the department. Eligible purchases or leases made
93	with such a certificate must be in strict compliance with this
94	subsection and departmental rules, and any person who makes an
95	exempt purchase with a certificate that is not in strict
96	compliance with this subsection and the rules is liable for and
97	shall pay the tax. The department may adopt rules to administer
98	this subsection.
99	(hh)  Solar energy systems.-Also exempt are solar energy
100	systems, or any component thereof, as provided in this
101	paragraph. The Florida Solar Energy Center shall from time to
102	time certify to the department a list of equipment and requisite
103	hardware considered to be a solar energy system or a component
104	thereof. A solar energy system, or component thereof, having a
105	minimum of 50 percent of its materials manufactured in Florida,
106	as measured by the cost of such materials, or a minimum of 80
107	percent of its materials manufactured in the United States, as
108	measured by the cost of such materials, is exempt from the tax
109	imposed by this chapter.
110	Section 2.  Paragraphs (c), (f), and (g) of subsection (1)
111	and subsection (2) of section 220.192, Florida Statutes, are
112	amended to read:
113	220.192  Renewable energy technologies investment tax
114	credit.-
115	(1)  DEFINITIONS.-For purposes of this section, the term:
116	(c)  "Eligible costs" means:
117	1.  Seventy-five percent of all capital costs, operation
118	and maintenance costs, and research and development costs
119	incurred between July 1, 2006, and June 30, 2016 2010, up to a
120	limit of $25 $3 million per state fiscal year for all taxpayers,
121	in connection with an investment in hydrogen-powered vehicles
122	and hydrogen vehicle fueling stations in the state, including,
123	but not limited to, the costs of constructing, installing, and
124	equipping such technologies in the state.
125	2.  Seventy-five percent of all capital costs, operation
126	and maintenance costs, and research and development costs
127	incurred between July 1, 2006, and June 30, 2016 2010, up to a
128	limit of $25 $1.5 million per state fiscal year for all
129	taxpayers, and limited to a maximum of $12,000 per fuel cell, in
130	connection with an investment in commercial stationary hydrogen
131	fuel cells in the state, including, but not limited to, the
132	costs of constructing, installing, and equipping such
133	technologies in the state.
134	3.  Seventy-five percent of all capital costs, operation
135	and maintenance costs, and research and development costs
136	incurred between July 1, 2006, and June 30, 2016 2010, up to a
137	limit of $6 $6.5 million per state fiscal year for all
138	taxpayers, in connection with an investment in the production,
139	storage, and distribution of biodiesel (B10-B100) and ethanol
140	(E10-E100) in the state, including the costs of constructing,
141	installing, and equipping such technologies in the state.
142	Gasoline fueling station pump retrofits for ethanol (E10-E100)
143	distribution qualify as an eligible cost under this
144	subparagraph.
145	4.  Fifty percent of all capital costs incurred between
146	July 1, 2010, and June 30, 2016, in connection with an
147	investment in solar energy systems in the state, up to a limit
148	of $500,000 per system and up to a limit of $250 million per
149	state fiscal year for all taxpayers. To be eligible, such system
150	must comply with state interconnection standards as required by
151	the rules of the Public Service Commission. The eligible costs
152	shall be reapportioned equally over 5 years.
153	(f)  "Solar energy system" means equipment that provides
154	for the collection and use of incident solar energy for water
155	heating, space heating or cooling, or other applications that
156	would normally require a conventional source of energy such as
157	petroleum products, natural gas, or electricity that performs
158	primarily with solar energy. In other systems in which solar
159	energy is used in a supplemental way, only those components that
160	collect and transfer solar energy are included in this
161	definition.
162	(g)(f)  "Taxpayer" includes a corporation as defined in
163	paragraph (b) or s. 220.03.
164	(2)  TAX CREDIT.-
165	(a)  For tax years beginning on or after January 1, 2007, a
166	credit against the tax imposed by this chapter shall be granted
167	in an amount equal to the eligible costs defined in
168	subparagraphs (1)(c)1.-3. For a solar electric generating
169	facility to be eligible to receive the investment tax credit
170	provided by this section, the renewable energy supplier's
171	facility must be located in Florida and contain at least 60
172	percent, as a percentage of the total installed cost including
173	construction labor costs, of materials that are manufactured in
174	Florida. For other renewable electric generating facilities to
175	be eligible to receive the investment tax credit provided by
176	this section, the renewable energy supplier's facility must be
177	located in Florida and contain at least 30 percent, as a
178	percentage of the total installed cost including construction
179	labor costs, of materials that are manufactured in Florida. The
180	credits may be used in tax years beginning January 1, 2007, and
181	ending December 31, 2016 2010, after which the credit shall
182	expire. If the credit is not fully used in any one tax year
183	because of insufficient tax liability on the part of the
184	corporation, the unused amount may be carried forward and used
185	in tax years beginning January 1, 2007, and ending December 31,
186	2018 2012, after which the credit carryover expires and may not
187	be used. A taxpayer that files a consolidated return in this
188	state as a member of an affiliated group under s. 220.131(1) may
189	be allowed the credit on a consolidated return basis up to the
190	amount of tax imposed upon the consolidated group. Any eligible
191	cost for which a credit is claimed and which is deducted or
192	otherwise reduces federal taxable income shall be added back in
193	computing adjusted federal income under s. 220.13.
194	(b)  For tax years beginning on or after January 1, 2011, a
195	credit against the tax imposed by this chapter shall be granted
196	in an amount equal to the eligible costs defined in subparagraph
197	(1)(c)4. The credits may be used in tax years beginning January
198	1, 2011, and ending December 31, 2016, after which the credit
199	shall expire. If the credit is not fully used in any one tax
200	year because of insufficient tax liability on the part of the
201	corporation, the unused amount may be carried forward and used
202	in tax years beginning January 1, 2010, and ending December 31,
203	2021, after which the credit carryover expires and may not be
204	used. A taxpayer that files a consolidated return in this state
205	as a member of an affiliated group under s. 220.131(1) may be
206	allowed the credit on a consolidated return basis up to the
207	amount of tax imposed upon the consolidated group. Any eligible
208	cost for which a credit is claimed and which is deducted or
209	otherwise reduces federal taxable income shall be added back in
210	computing adjusted federal income under s. 220.13.
211	Section 3.  Paragraphs (b) and (g) of subsection (3) of
212	section 220.193, Florida Statutes, are amended to read:
213	220.193  Florida renewable energy production credit.-
214	(3)  An annual credit against the tax imposed by this
215	section shall be allowed to a taxpayer, based on the taxpayer's
216	production and sale of electricity from a new or expanded
217	Florida renewable energy facility. For a new facility, the
218	credit shall be based on the taxpayer's sale of the facility's
219	entire electrical production. For an expanded facility, the
220	credit shall be based on the increases in the facility's
221	electrical production that are achieved after May 1, 2006.
222	(b)  The credit may be claimed for electricity produced and
223	sold on or after January 1, 2007. Beginning in 2008 and
224	continuing until 2017 2011, each taxpayer claiming a credit
225	under this section must first apply to the department by
226	February 1 of each year for an allocation of available credit.
227	The department, in consultation with the commission, shall
228	develop an application form. The application form shall, at a
229	minimum, require a sworn affidavit from each taxpayer certifying
230	the increase in production and sales that form the basis of the
231	application and certifying that all information contained in the
232	application is true and correct.
233	(g)  Notwithstanding any other provision of this section,
234	credits for the production and sale of electricity from a new or
235	expanded Florida renewable energy facility may be earned between
236	January 1, 2007, and June 30, 2017 2010. The combined total
237	amount of tax credits which may be granted for all taxpayers
238	under this section is limited to $250 $5 million per state
239	fiscal year.
240	Section 4.  Subsection (1) of section 366.02, Florida
241	Statutes, is amended to read:
242	366.02  Definitions.-As used in this chapter:
243	(1)  "Public utility" means every person, corporation,
244	partnership, association, or other legal entity and their
245	lessees, trustees, or receivers supplying electricity or gas
246	(natural, manufactured, or similar gaseous substance) to or for
247	the public within this state.; but The term "public utility"
248	does not include: either
249	(a)  A cooperative now or hereafter organized and existing
250	under the Rural Electric Cooperative Law of the state;
251	(b)  A municipality or any agency thereof;
252	(c)  Any dependent or independent special natural gas
253	district, including special natural gas districts;
254	(d)  Any natural gas transmission pipeline company making
255	only sales or transportation delivery of natural gas at
256	wholesale and to direct industrial consumers;
257	(e)  Any entity selling or arranging for sales of natural
258	gas which neither owns nor operates natural gas transmission or
259	distribution facilities within the state; or
260	(f)  A person supplying liquefied petroleum gas, in either
261	liquid or gaseous form, irrespective of the method of
262	distribution or delivery, or owning or operating facilities
263	beyond the outlet of a meter through which natural gas is
264	supplied for compression and delivery into motor vehicle fuel
265	tanks or other transportation containers, unless such person
266	also supplies electricity or manufactured or natural gas; or.
267	(g)  The developer of a renewable energy generation
268	facility that has an aggregate gross power rating of 5
269	megawatts, measured on an alternating current basis, or less;
270	that is located on the premises of a host consumer or group of
271	host consumers, including, without limitation, residential,
272	commercial, industrial, institutional, or agricultural host
273	customers located on the same or contiguous property, all
274	subject to the aggregate gross power limitation; and that
275	supplies electricity exclusively for sale to the host consumer
276	or consumers for consumption on the premises only and contiguous
277	property owned or leased by the host consumer or consumers,
278	regardless of interruptions in contiguity caused by easements,
279	public thoroughfares, transportation rights-of-way, or utility
280	rights-of-way.
281	Section 5.  Section 366.90, Florida Statutes, is created to
282	read:
283	366.90  Renewable energy for electricity production.-In
284	furtherance of the energy policy goals established in s.
285	377.601, the Legislature finds that it is in the public interest
286	to promote the development of renewable energy resources in the
287	state, for purposes of electricity production, through the
288	provisions of ss. 366.91 and 366.92. The Legislature further
289	finds that renewable energy resources have the potential to help
290	diversify fuel types to alleviate the state's growing dependence
291	on natural gas and other fossil fuels for the production of
292	electricity, minimize the volatility of fuel costs, encourage
293	investment within the state, promote the state's energy
294	independence and long-term economic and environmental
295	sustainability, reduce the net outflow of energy expenditures,
296	improve environmental conditions, and make the state a leader in
297	new and innovative technologies.
298	Section 6.  Subsection (2) of section 366.91, Florida
299	Statutes, is amended to read:
300	366.91  Renewable energy.-
301	(2)  As used in this section, the term:
302	(a)  "Biomass," when used as means a power source, means
303	any organic material that is available on a renewable or
304	recurring basis and that is comprised of, but is not limited to,
305	combustible residues or gases from forest products
306	manufacturing, waste, byproducts, or products from agricultural
307	and orchard crops, waste or coproducts from livestock and
308	poultry operations, waste or byproducts from food processing,
309	recycling byproducts from the recycling of source materials that
310	are not derived from fossil fuels, urban wood waste, municipal
311	solid waste, municipal liquid waste treatment operations, and
312	landfill gas.
313	(b)  "Customer-owned renewable generation" means an
314	electric generating system located on a customer's premises that
315	is primarily intended to offset part or all of the customer's
316	electricity requirements with renewable energy.
317	(c)  "Net metering" means a metering and billing
318	methodology whereby customer-owned renewable generation is
319	allowed to offset the customer's electricity consumption on
320	site, and the customer's site includes all of the customer's
321	energy usage accounts located on contiguous property owned by
322	the same customer.
323	(d)  "Renewable energy" means electrical energy produced
324	from a method that uses one or more of the following fuels or
325	energy sources: hydrogen produced from sources other than fossil
326	fuels, biomass, solar energy, geothermal energy, wind energy,
327	ocean energy, and hydroelectric power. The term includes the
328	alternative energy resource, waste heat, from sulfuric acid
329	manufacturing operations and electrical energy produced using
330	pipeline-quality synthetic gas produced from waste petroleum
331	coke with carbon capture and sequestration.
332	Section 7.  Section 366.92, Florida Statutes, is amended to
333	read:
334	366.92  Florida renewable energy policy.-
335	(1)  It is the intent of the Legislature to promote the
336	development of renewable energy; protect the economic viability
337	of Florida's existing renewable energy facilities; diversify the
338	types of fuel used to generate electricity in Florida; lessen
339	Florida's dependence on natural gas and fuel oil for the
340	production of electricity; minimize the volatility of fuel
341	costs; encourage investment within the state; improve
342	environmental conditions; and, at the same time, minimize the
343	costs of the conventional and renewable power supply to electric
344	utilities and their customers while promoting Florida-based
345	renewable energy production consistent with the state's energy
346	policy.
347	(2)  As used in this section, the term:
348	(a)  "Florida renewable energy resources" means renewable
349	energy, as defined in s. 377.803, that is produced in Florida.
350	(b)  "Provider" means a "utility" as defined in s.
351	366.8255(1)(a).
352	(c)  "Renewable energy" means renewable energy as defined
353	in s. 366.91(2)(d) which is produced in this state.
354	(d)  "Renewable energy credit" or "REC" means a product
355	that represents the unbundled, separable, renewable attribute of
356	renewable energy produced in Florida and is equivalent to 1
357	megawatt-hour of electricity generated by a source of renewable
358	energy located in Florida.
359	(e)  "Renewable portfolio standard" or "RPS" means the
360	minimum percentage of total annual retail electricity sales by a
361	provider to consumers in Florida that shall be supplied by
362	renewable energy produced in Florida.
363	(3)  Subject to the provisions of this subsection, in order
364	to provide for the most cost-effective development and
365	deployment of renewable energy resources in this state, the
366	commission shall provide for the full cost recovery under the
367	environmental cost-recovery clause of all reasonable and prudent
368	costs incurred by a provider to produce or purchase, pursuant to
369	the provisions of this section, renewable energy for the
370	purposes of supplying electrical energy to its retail customers.
371	(a)  Each provider shall purchase renewable energy pursuant
372	to a standard form contract for the purchase of renewable energy
373	from different types of renewable energy facilities located in
374	Florida.
375	1.  The price to be paid for renewable energy purchased
376	through a standard form contract shall be expressed in a
377	levelized, or constant, price per kilowatt hour for the term of
378	the contract. The price shall be determined by a competitive
379	auction conducted by an independent auction administrator
380	engaged by the commission to ensure the objectivity and fairness
381	of the auction. The provider shall reimburse the commission for
382	the cost for the independent auction administrator, and the cost
383	is recoverable by the provider through the environmental cost-
384	recovery clause.
385	2.  The terms and conditions of the standard form contract
386	shall be determined pursuant to the hearing conducted by the
387	commission before the issuance of such contract and the conduct
388	of the auction provided for in this paragraph.
389	3.  For a renewable electric generating facility to be
390	eligible to participate in the auction, a renewable energy
391	supplier's facility must be located in Florida.
392	4.  To ensure the timely construction of renewable energy
393	projects, the standard contract must contain the following
394	provisions:
395	a.  A $20 per kilowatt development deposit for systems of
396	100 kilowatts or less, payable within 30 days after the contract
397	is executed by both the supplier and the purchasing utility.
398	b.  A $30 per kilowatt development deposit for systems
399	above 100 kilowatts, payable within 30 days after the contract
400	is executed by both the supplier and the purchasing utility.
401	5.  Solar projects that are not operational within 18
402	months after the contract is executed and non-solar projects
403	that are not operational within 36 months after the contract is
404	executed are subject to contract termination. Termination is not
405	automatic, and notice and the opportunity for a hearing must be
406	provided prior to termination. Project delays due to regulatory
407	processes outside the developer's control may not be the basis
408	for contract termination.
409	6.  A contract shall be for a minimum term of 20 years and
410	a maximum term of 30 years, with the term in years to be among
411	the terms and conditions to be established by the commission
412	pursuant to the hearing provided for in this paragraph.
413	(b)  Each provider must offer, as its minimum, a standard
414	form contract for each of the following types and size classes
415	of renewable energy technologies:
416	1.  Large (greater than 1,000 kilowatts), medium (greater
417	than 100 kilowatts but less than or equal to 999 kilowatts) and
418	small (less than or equal to 100 kilowatts) solar electric
419	technologies, including photovoltaic, solar thermoelectric, and
420	solar thermal generating technologies, as well as other electric
421	production technologies that convert solar energy into
422	electricity, and also including fuel cells that are fueled by
423	hydrogen produced from hydrolysis of water using electricity
424	produced by solar technologies;
425	2.  Large (greater than 100 kilowatts) and small (less than
426	or equal to 100 kilowatts) wind technologies;
427	3.  Large (greater than 100 kilowatts) and small (less than
428	or equal to 100 kilowatts) hydroelectric technologies, including
429	technologies that utilize the energy in waves, ocean currents,
430	and thermal energy differentials;
431	4.  Large (greater than or equal to 10 megawatts), medium-
432	sized (greater than 100 kilowatts but less than 10 megawatts),
433	and small (less than or equal to 100 kilowatts) biomass
434	technologies and applications of no more than 10 megawatts net
435	output capacity; and
436	5.  Large (greater than 100 kilowatts) and small (less than
437	or equal to 100 kilowatts) waste heat technologies.
438	(c)  Each provider shall purchase in 2012 and in each
439	calendar year thereafter 2 percent of the provider's total
440	retail revenues for renewable energy. The purchase is in
441	addition to the provider's avoided as-available energy cost for
442	the energy purchased. The provider's total retail revenues
443	include all cost adjustment, cost recovery, and similar add-on
444	charges collected by the provider in the preceding calendar
445	year. However, the total retail revenues exclude only franchise
446	fee revenues. Ten percent of the amount designated for each
447	technology type shall be reserved for small renewable energy
448	production facilities of the respective technology. A provider
449	may expend in any year up to an additional 1 percent above the
450	minimum amounts required in this subsection of the provider's
451	total retail revenues, including all cost adjustment, cost
452	recovery, and similar add-on charges, collected by the provider
453	in the preceding calendar year, excluding only franchise fee
454	revenues.
455	(d)1.  The commission shall require that a minimum of 25
456	percent of the total funding to be expended by each provider on
457	the purchase of solar energy. Each utility shall make available
458	a minimum of 10 percent of the utility's applicable amount for
459	small solar suppliers and a minimum of 20 percent of the
460	utility's applicable amount for medium solar suppliers. The
461	commission may establish minimum percentages of the funding that
462	is to be expended for renewable energy for wind energy and other
463	renewable energy technologies.
464	2.  If the bids received from the auction are insufficient
465	to expend the total amount of funds available, the residual
466	funds are available for either technologies other than the
467	under-subscribed technologies or to be carried forward and
468	expended on a pro rata basis over the succeeding 4 years.
469	(e)  Each provider may elect to provide up to, but no more
470	than, 25 percent of the total amount of renewable energy to be
471	purchased for each technology type listed in paragraph (b). If
472	the provider elects this option, the provider's cost recovery
473	shall be limited to the lowest price bid by any respondent in
474	the auction for supplying renewable energy of the respective
475	technology type for the life of the commitment.
476	(f)  After a contract is executed or the provider has
477	elected to provide a portion of the renewable energy under
478	paragraph (c), the provider may not recover costs any greater
479	than the contract price or the price determined under paragraph
480	(c).
481	(g)  Each provider may recover through the environmental
482	cost-recovery clause an amount equal to 0.005 percent of all
483	moneys paid to unaffiliated renewable energy producers to
484	purchase renewable energy.
485	(h)  A provider may recover only the costs for new
486	construction or conversion projects for which construction
487	commenced on or after July 1, 2011, and for purchases made on or
488	after that date. All renewable energy projects for which costs
489	are approved by the commission for recovery through the
490	environmental cost-recovery clause before July 1, 2011, are not
491	subject to or included in the calculation pursuant to paragraph
492	(c).
493	(i)  In a proceeding to recover costs, a provider must
494	provide to the commission all cost information, hourly energy
495	production information, and other information deemed relevant by
496	the commission with respect to each project.
497	(j)  If a provider purchases renewable energy at a cost in
498	excess of its full avoided cost, the seller must surrender to
499	the provider all renewable attributes of the renewable energy
500	purchased.
501	(k)  Revenues derived from any renewable energy credit,
502	carbon credit, green tag credit, renewable energy attribute, or
503	any other mechanism that attributes value to the production of
504	renewable energy, either existing or hereafter devised, and
505	received by a provider by virtue of the production or purchase
506	of renewable energy for which cost recovery is approved, shall
507	be shared with the provider's ratepayers such that the
508	ratepayers are credited at least 95 percent of such revenues.
509	However, the provider is not required to share with its
510	ratepayers any value derived from credits received by the
511	provider by virtue of the purchase of renewable energy from a
512	third-party generating facility in the state which does not
513	exceed 2 megawatts in capacity and is not a regulated utility or
514	its unregulated affiliate.
515	(l)  A renewable energy generating facility that is
516	constructed by a renewable energy supplier or by a provider to
517	provide renewable energy is not subject to s. 403.519. The
518	commission is not required to submit a report for the project
519	pursuant to s. 403.507(4)(a).
520	(4)  Each provider shall, in its 10-year site plan
521	submitted to the commission, provide the following information:
522	(a)  The amount of renewable energy resources the provider
523	produces or purchases.
524	(b)  The amount of renewable energy resources the provider
525	plans to produce or purchase over the 10-year planning horizon
526	and the means by which such production or purchases will be
527	achieved.
528	(c)  A statement indicating how the production and purchase
529	of renewable energy resources impact the provider's present and
530	future capacity and energy needs.
531	(3)  The commission shall adopt rules for a renewable
532	portfolio standard requiring each provider to supply renewable
533	energy to its customers directly, by procuring, or through
534	renewable energy credits. In developing the RPS rule, the
535	commission shall consult the Department of Environmental
536	Protection and the Florida Energy and Climate Commission. The
537	rule shall not be implemented until ratified by the Legislature.
538	The commission shall present a draft rule for legislative
539	consideration by February 1, 2009.
540	(a)  In developing the rule, the commission shall evaluate
541	the current and forecasted levelized cost in cents per kilowatt
542	hour through 2020 and current and forecasted installed capacity
543	in kilowatts for each renewable energy generation method through
544	2020.
545	(b)  The commission's rule:
546	1.  Shall include methods of managing the cost of
547	compliance with the renewable portfolio standard, whether
548	through direct supply or procurement of renewable power or
549	through the purchase of renewable energy credits. The commission
550	shall have rulemaking authority for providing annual cost
551	recovery and incentive-based adjustments to authorized rates of
552	return on common equity to providers to incentivize renewable
553	energy. Notwithstanding s. 366.91(3) and (4), upon the
554	ratification of the rules developed pursuant to this subsection,
555	the commission may approve projects and power sales agreements
556	with renewable power producers and the sale of renewable energy
557	credits needed to comply with the renewable portfolio standard.
558	In the event of any conflict, this subparagraph shall supersede
559	s. 366.91(3) and (4). However, nothing in this section shall
560	alter the obligation of each public utility to continuously
561	offer a purchase contract to producers of renewable energy.
562	2.  Shall provide for appropriate compliance measures and
563	the conditions under which noncompliance shall be excused due to
564	a determination by the commission that the supply of renewable
565	energy or renewable energy credits was not adequate to satisfy
566	the demand for such energy or that the cost of securing
567	renewable energy or renewable energy credits was cost
568	prohibitive.
569	3.  May provide added weight to energy provided by wind and
570	solar photovoltaic over other forms of renewable energy, whether
571	directly supplied or procured or indirectly obtained through the
572	purchase of renewable energy credits.
573	4.  Shall determine an appropriate period of time for which
574	renewable energy credits may be used for purposes of compliance
575	with the renewable portfolio standard.
576	5.  Shall provide for monitoring of compliance with and
577	enforcement of the requirements of this section.
578	6.  Shall ensure that energy credited toward compliance
579	with the requirements of this section is not credited toward any
580	other purpose.
581	7.  Shall include procedures to track and account for
582	renewable energy credits, including ownership of renewable
583	energy credits that are derived from a customer-owned renewable
584	energy facility as a result of any action by a customer of an
585	electric power supplier that is independent of a program
586	sponsored by the electric power supplier.
587	8.  Shall provide for the conditions and options for the
588	repeal or alteration of the rule in the event that new
589	provisions of federal law supplant or conflict with the rule.
590	(c)  Beginning on April 1 of the year following final
591	adoption of the commission's renewable portfolio standard rule,
592	each provider shall submit a report to the commission describing
593	the steps that have been taken in the previous year and the
594	steps that will be taken in the future to add renewable energy
595	to the provider's energy supply portfolio. The report shall
596	state whether the provider was in compliance with the renewable
597	portfolio standard during the previous year and how it will
598	comply with the renewable portfolio standard in the upcoming
599	year.
600	(4)  In order to demonstrate the feasibility and viability
601	of clean energy systems, the commission shall provide for full
602	cost recovery under the environmental cost-recovery clause of
603	all reasonable and prudent costs incurred by a provider for
604	renewable energy projects that are zero greenhouse gas emitting
605	at the point of generation, up to a total of 110 megawatts
606	statewide, and for which the provider has secured necessary
607	land, zoning permits, and transmission rights within the state.
608	Such costs shall be deemed reasonable and prudent for purposes
609	of cost recovery so long as the provider has used reasonable and
610	customary industry practices in the design, procurement, and
611	construction of the project in a cost-effective manner
612	appropriate to the location of the facility. The provider shall
613	report to the commission as part of the cost-recovery
614	proceedings the construction costs, in-service costs, operating
615	and maintenance costs, hourly energy production of the renewable
616	energy project, and any other information deemed relevant by the
617	commission. Any provider constructing a clean energy facility
618	pursuant to this section shall file for cost recovery no later
619	than July 1, 2009.
620	(5)  Each municipal electric utility and rural electric
621	cooperative shall develop standards for the promotion,
622	encouragement, and expansion of the use of renewable energy
623	resources and energy conservation and efficiency measures. On or
624	before April 1, 2009, and annually thereafter, each municipal
625	electric utility and electric cooperative shall submit to the
626	commission a report that identifies such standards.
627	(6)  Nothing in this section shall be construed to impede
628	or impair terms and conditions of existing contracts.
629	(7)  To further promote renewable energy, any expansion of
630	an existing renewable energy electric generating facility,
631	subject to a total of up to 200 net megawatts statewide, for
632	which a site certification application is filed before January
633	1, 2011, and which is owned by a local government entity, does
634	not require a determination of need pursuant to s. 403.519.
635	(8)(a)  A developer of renewable energy generation may
636	locate, own, and operate a renewable energy generation facility
637	that has an aggregate gross power rating of 5 megawatts or less,
638	measured on an alternating current basis, on the premises of a
639	host consumer or group of host consumers, including, without
640	limitation, residential, commercial, industrial, institutional,
641	or agricultural host customers located on the same or contiguous
642	property, all subject to the aggregate gross power limitation,
643	and supply electricity exclusively for sale to the host consumer
644	for consumption only on the premises or contiguous property
645	owned or leased by the host consumer, regardless of
646	interruptions in contiguity caused by easements, public
647	thoroughfares, transportation rights-of-way, or utility rights-
648	of-way.
649	(b)  Interconnection, metering, and standby and
650	supplemental service must be available to the host consumer
651	served by renewable generation facilities on the same basis as
652	if the host consumer owned and operated the renewable generation
653	facilities themselves.
654	(c)  The developer of renewable energy must annually
655	provide to the commission the following information:
656	1.  The size and location of each renewable energy
657	generation facility planned.
658	2.  The identity and historical and projected load
659	characteristics of each host consumer.
660	3.  The actual production and use of renewable electricity
661	by facilities installed.
662	(d)  Beginning January 1, 2013, and at least once every 12
663	months thereafter, the commission shall report to the President
664	of the Senate and the Speaker of the House of Representatives on
665	activity under this subsection and the impacts of renewable
666	energy generation activity on the electric power grid of the
667	state, the individual utility systems, and each utility's
668	general body of ratepayers, and shall make recommendations
669	concerning implementation of this program.
670	(9)(7)  The commission may adopt rules to administer and
671	implement the provisions of this section.
672	Section 8.  Section 377.601, Florida Statutes, is amended
673	to read:
674	377.601  Legislative intent.-
675	(1)  The purpose of the state's energy policy is to ensure
676	adequate, reliable, cost-effective, and sustainable energy
677	supplies for the state in a manner that: promotes sustainable
678	economic growth; reduces Florida's dependence on fuels from
679	outside the state; maximizes, within the limitations set forth
680	in applicable provisions of law, the use of Florida-based
681	renewable energy resources to produce electricity and
682	transportation fuels; ensures that renewable energy resources
683	are procured, to the maximum extent possible, using fair,
684	transparent, and competitive purchase systems; and minimizes and
685	mitigates any adverse impacts on human health and welfare, and
686	on Florida's environment, to the maximum extent practicable and
687	subject to the limitations set forth in applicable provisions of
688	state law. The Legislature intends that the state's energy
689	policy, and all decisions made by all state agencies impacting
690	the state's energy policy, be efficiently directed toward
691	achieving these purposes.
692	(2)  In furtherance of these purposes, the state's energy
693	policy shall be implemented through effective, efficient, and
694	reliable governance and shall be guided by the following goals
695	in order of their priority:
696	(a)  Ensuring an affordable energy supply.
697	(b)  Ensuring an adequate and sustainable energy supply and
698	a Florida-based energy production capacity.
699	(c)  Ensuring a secure and reliable energy supply.
700	(d)  Minimizing energy cost volatility and the state's
701	long-term exposure to volatility and increases in world energy
702	prices.
703	(e)  Minimizing the negative impacts of energy production
704	on the state's environment, social fabric, and the public health
705	and welfare.
706	(f)  Maximizing economic synergies for the state associated
707	with its energy policy.
708	(g)  Reducing the net export of energy expenditures by
709	maximizing the use of Florida-based renewable energy resources
710	to meet the state's energy needs.
711	(3)(1)  The Legislature finds that the state's energy
712	security can be increased by lessening dependence on foreign
713	oil; that the impacts of global climate change can be reduced
714	through the reduction of greenhouse gas emissions; and that the
715	implementation of alternative energy technologies can be a
716	source of new jobs and employment opportunities for many
717	Floridians. The Legislature further finds that the state is
718	positioned at the front line against potential impacts of global
719	climate change. Human and economic costs of those impacts can be
720	averted by global actions and, where necessary, adapted to by a
721	concerted effort to make Florida's communities more resilient
722	and less vulnerable to these impacts. In focusing the
723	government's policy and efforts to benefit and protect our
724	state, its citizens, and its resources, the Legislature believes
725	that a single government entity with a specific focus on energy
726	and climate change is both desirable and advantageous. Further,
727	the Legislature finds that energy infrastructure provides the
728	foundation for secure and reliable access to the energy supplies
729	and services on which Florida depends. Therefore, there is
730	significant value to Florida consumers that comes from
731	investment in Florida's energy infrastructure that increases
732	system reliability, enhances energy independence and
733	diversification, stabilizes energy costs, and reduces greenhouse
734	gas emissions.
735	(4)(2)  It is further the policy of the state of Florida
736	to:
737	(a)  Develop and promote the effective use of energy in the
738	state, discourage all forms of energy waste, and recognize and
739	address the potential of global climate change wherever
740	possible.
741	(b)  Play a leading role in developing and instituting
742	energy management programs aimed at promoting energy
743	conservation, energy security, and the reduction of greenhouse
744	gas emissions.
745	(c)  Include energy considerations consistent with the
746	state's energy policy in all state, regional, and local planning
747	decisions, as well as in all decisions by state agencies.
748	(d)  Utilize and manage effectively energy resources used
749	within state agencies.
750	(e)  Encourage local governments to include energy
751	considerations in all planning and to support their work in
752	promoting energy management programs.
753	(f)  Include the full participation of citizens in the
754	development and implementation of energy programs.
755	(g)  Consider in its decisions the energy needs of each
756	economic sector, including residential, industrial, commercial,
757	agricultural, and governmental uses, and reduce those needs
758	whenever possible.
759	(h)  Promote energy education and the public dissemination
760	of information on the use and consumption of energy and its
761	environmental, economic, and social impacts impact.
762	(i)  Encourage the research, development, demonstration,
763	and application of alternative energy resources, particularly
764	renewable energy resources.
765	(j)  Consider, in its decisionmaking, the social, economic,
766	and environmental impacts of energy-related activities,
767	including the whole-life-cycle impacts of any potential energy
768	use choices, so that detrimental effects of these activities are
769	understood and minimized.
770	(k)  Develop and maintain energy emergency preparedness
771	plans to minimize the effects of an energy shortage within
772	Florida.
773	Section 9.  Subsection (1) and paragraph (f) of subsection
774	(2) of section 377.703, Florida Statutes, are amended to read:
775	377.703  Additional functions of the Florida Energy and
776	Climate Commission.-
777	(1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
778	demand questions have become a major area of concern to the
779	state which must be dealt with by effective and well-coordinated
780	state action, it is the intent of the Legislature to promote the
781	efficient, effective, and economical management of energy
782	problems, centralize energy coordination responsibilities,
783	pinpoint responsibility for conducting energy programs, and
784	ensure the accountability of state agencies for the
785	implementation of s. 377.601 s. 377.601(2), the state energy
786	policy. It is the specific intent of the Legislature that
787	nothing in this act shall in any way change the powers, duties,
788	and responsibilities assigned by the Florida Electrical Power
789	Plant Siting Act, part II of chapter 403, or the powers, duties,
790	and responsibilities of the Florida Public Service Commission.
791	(2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
792	commission shall perform the following functions consistent with
793	the development of a state energy policy:
794	(f)  The commission shall submit an annual report to the
795	Governor and the Legislature reflecting its activities and
796	making recommendations of policies for improvement of the
797	state's response to energy supply and demand and its effect on
798	the health, safety, and welfare of the people of Florida. The
799	report shall include a report from the Florida Public Service
800	Commission on electricity and natural gas and information on
801	energy conservation programs conducted and underway in the past
802	year and shall include recommendations for energy conservation
803	programs for the state, including, but not limited to, the
804	following factors:
805	1.  Formulation of specific recommendations for improvement
806	in the efficiency of energy utilization in governmental,
807	residential, commercial, industrial, and transportation sectors.
808	2.  Collection and dissemination of information relating to
809	energy conservation.
810	3.  Development and conduct of educational and training
811	programs relating to energy conservation.
812	4.  An analysis of the ways in which state agencies are
813	seeking to implement s. 377.601 s. 377.601(2), the state energy
814	policy, and recommendations for better fulfilling this policy.
815	Section 10.  Present subsections (3) and (4) of section
816	377.809, Florida Statutes, are renumbered as subsections (4) and
817	(5), respectively, and a new subsection (3) is added to that
818	section to read:
819	377.809  Energy Economic Zone Pilot Program.-
820	(3)  The Department of Community Affairs, in consultation
821	with the Florida Energy and Climate Commission, shall implement
822	an Energy Economic Zone Pilot Program for the purpose of
823	developing a model to assist communities in attracting renewable
824	energy technology, energy efficiency technology, and biofuel
825	technology industries that are focused on bringing research and
826	development projects to large-scale production. The Office of
827	Tourism, Trade, and Economic Development shall provide technical
828	assistance in obtaining additional or supplemental financing and
829	in developing and administering the program.
830	(a)  The application for the pilot project shall:
831	1.  Identify the proposed location of the energy economic
832	zone, which must have a significant workforce population that is
833	at risk as a result of reduced or eliminated federal funding.
834	2.  Present a proposed strategic plan for development and
835	redevelopment in the energy economic zone.
836	3.  Demonstrate consistency of the strategic plan with the
837	local comprehensive plan or include proposed plan amendments
838	necessary to achieve consistency.
839	(b)  The Department of Community Affairs must grant at
840	least one application if the application meets the requirements
841	of this subsection and the community has demonstrated a prior
842	commitment to technology development. The Department of
843	Community Affairs, the Florida Energy and Climate Commission,
844	and the Office of Tourism, Trade, and Economic Development shall
845	provide the pilot community with technical assistance in
846	identifying and qualifying for eligible grants and credits in
847	job creation, energy development, and other areas of
848	development, and encourage businesses to locate within the
849	energy economic zone.
850	Section 11.  Subsection (14) of section 403.503, Florida
851	Statutes, is amended to read:
852	403.503  Definitions relating to Florida Electrical Power
853	Plant Siting Act.-As used in this act:
854	(14)  "Electrical power plant" means, for the purpose of
855	certification, any steam or solar electrical generating facility
856	using any process or fuel, including nuclear materials, except
857	that this term does not include any steam or solar electrical
858	generating facility of less than 75 megawatts in capacity or any
859	solar or biomass electrical generating facility of any sized
860	capacity unless the applicant for such a facility elects to
861	apply for certification under this act. This term also includes
862	the site; all associated facilities that will be owned by the
863	applicant that are physically connected to the site; all
864	associated facilities that are indirectly connected to the site
865	by other proposed associated facilities that will be owned by
866	the applicant; and associated transmission lines that will be
867	owned by the applicant which connect the electrical power plant
868	to an existing transmission network or rights-of-way to which
869	the applicant intends to connect. At the applicant's option,
870	this term may include any offsite associated facilities that
871	will not be owned by the applicant; offsite associated
872	facilities that are owned by the applicant but that are not
873	directly connected to the site; any proposed terminal or
874	intermediate substations or substation expansions connected to
875	the associated transmission line; or new transmission lines,
876	upgrades, or improvements of an existing transmission line on
877	any portion of the applicant's electrical transmission system
878	necessary to support the generation injected into the system
879	from the proposed electrical power plant.
880	Section 12.  If any provision of this act or the
881	application thereof to any person or circumstance is held
882	invalid, the invalidity does not affect other provisions or
883	applications of the act that may be given effect without the
884	invalid provision or application, and to this end the provisions
885	of this act are declared to be severable.
886	Section 13.  This act shall take effect upon becoming a
887	law.

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