Florida Senate - 2020 SB 256 By Senator Rodriguez 37-00394A-20 2020256__ 1 A bill to be entitled 2 An act relating to renewable energy; amending s. 3 366.92, F.S.; defining the terms “renewable energy 4 credit” and “renewable portfolio standard”; requiring 5 the Public Service Commission to adopt rules for a 6 renewable portfolio standard; requiring the commission 7 to present a draft rule to the Legislature for 8 consideration by a specified date; providing 9 requirements for the rule; requiring providers to 10 submit annual progress reports to the commission after 11 such rule has been adopted; providing requirements for 12 the reports; creating s. 377.821, F.S.; providing 13 legislative findings; directing the Office of Energy 14 within the Department of Agriculture and Consumer 15 Services, in consultation with other state agencies, 16 state colleges and universities, public utilities, and 17 other private and public entities, to develop a 18 unified statewide plan to generate the state’s energy 19 from renewable sources by specified dates; requiring 20 state and public entities to cooperate as requested; 21 providing plan requirements; requiring the office to 22 submit the plan and updates to the Governor and the 23 Legislature by a specified date; providing an 24 effective date. 25 26 Be It Enacted by the Legislature of the State of Florida: 27 28 Section 1. Present subsections (3), (4), and (5) of section 29 366.92, Florida Statutes, are redesignated as subsections (4), 30 (5), and (6), respectively, paragraphs (c) and (d) are added to 31 subsection (2) of that section, and a new subsection (3) is 32 added to that section, to read: 33 366.92 Florida renewable energy policy.— 34 (2) As used in this section, the term: 35 (c) “Renewable energy credit” means a value that represents 36 the unbundled, separable, renewable attribute of renewable 37 energy produced in this state and is equivalent to 1 megawatt 38 hour of electricity generated by a source of renewable energy 39 located in this state. 40 (d) “Renewable portfolio standard” or “RPS” means the 41 minimum percentage of total annual retail electricity sales by a 42 provider to consumers in this state which must be supplied by 43 renewable energy produced in this state. 44 (3) To ensure that 100 percent of the electric supply comes 45 from renewable energy by 2050 as required by s. 377.821, the 46 commission shall adopt rules for a renewable portfolio standard 47 requiring each provider to supply renewable energy to its 48 customers directly by procurement or through the purchase of 49 renewable energy credits. In developing the RPS rule, the 50 commission shall consult the Department of Environmental 51 Protection and the Department of Agriculture and Consumer 52 Services. The rule may not be implemented until adopted by the 53 Legislature. The commission shall present a draft rule for 54 consideration by the Legislature by February 1, 2021. 55 (a) In developing the rule, the commission shall evaluate 56 the current and forecasted levelized cost in cents per kilowatt 57 hour through 2032 and the current and forecasted installed 58 capacity in kilowatts for each renewable energy generation 59 method through 2032. 60 (b) The commission’s rule: 61 1. Must include methods of managing the cost of compliance 62 with the renewable portfolio standard, whether through direct 63 supply or procurement of renewable power or through the purchase 64 of renewable energy credits. The commission may include 65 provision in the rule for annual cost recovery and incentive 66 based adjustments to authorized rates of return on common equity 67 to providers to incentivize renewable energy. Notwithstanding s. 68 366.91(3) and (4), and upon the ratification of the rules 69 developed pursuant to this subsection, the commission may 70 approve projects and power sales agreements with renewable power 71 producers and the sale of renewable energy credits needed to 72 comply with the renewable portfolio standard. In the event of 73 any conflict, this subparagraph supersedes s. 366.91(3) and (4). 74 However, this section does not alter the obligation of each 75 public utility to continuously offer a purchase contract to 76 producers of renewable energy. 77 2. Must provide for appropriate compliance measures and the 78 conditions under which noncompliance is excused due to a 79 determination by the commission that the supply of renewable 80 energy or renewable energy credits was not adequate to satisfy 81 the demand for such energy or that the cost of securing 82 renewable energy or renewable energy credits was cost 83 prohibitive. 84 3. May provide added weight to energy provided by wind and 85 solar photovoltaic over other forms of renewable energy, whether 86 directly supplied or procured or indirectly obtained through the 87 purchase of renewable energy credits. 88 4. Must determine an appropriate period of time during 89 which renewable energy credits may be used for purposes of 90 compliance with the renewable portfolio standard. 91 5. Must provide for monitoring of compliance with and 92 enforcement of this section. 93 6. Must ensure that energy credited toward compliance with 94 this section is not credited toward any other purpose. 95 7. Must include procedures to track and account for 96 renewable energy credits, including ownership of renewable 97 energy credits that are derived from a customer-owned renewable 98 energy facility as a result of any action by a customer of an 99 electric power supplier that is independent of a program 100 sponsored by the electric power supplier. 101 8. Must provide for the conditions and options for the 102 repeal or alteration of the rule in the event that new 103 provisions of federal law supplant or conflict with the rule. 104 (c) Beginning on April 1 of the year following final 105 adoption of the commission’s renewable portfolio standard rule, 106 each provider shall submit an annual report to the commission 107 describing the steps that have been taken during the previous 108 year and the steps that will be taken in the future to add 109 renewable energy to the provider’s energy supply portfolio. The 110 report must state whether the provider was in compliance with 111 the renewable portfolio standard during the previous year and 112 how it intends to comply with the renewable portfolio standard 113 in the upcoming year. 114 Section 2. Section 377.821, Florida Statutes, is created to 115 read: 116 377.821 State entity renewable energy goals.— 117 (1) The Legislature finds that achieving 100 percent 118 renewable energy generation in this state by 2050 will provide 119 unique benefits to the state, including all of the following: 120 (a) Displacing fossil fuel consumption. 121 (b) Adding new electrical generating facilities in the 122 transmission network. 123 (c) Reducing air pollution, particularly criteria pollutant 124 emissions and toxic air contaminants. 125 (d) Contributing to the safe and reliable operation of the 126 electrical grid, including providing predictable electrical 127 supply, voltage support, lower line losses, and congestion 128 relief. 129 (e) Enhancing economic development and job creation in the 130 clean energy industry. 131 (2) The Office of Energy within the Department of 132 Agriculture and Consumer Services, in consultation with other 133 state agencies, state colleges and universities, public 134 utilities, and other private and public entities, is directed to 135 develop a unified statewide plan to generate 100 percent of the 136 state’s energy from renewable sources by 2050. All public 137 agencies, state colleges and universities, and public utilities 138 must cooperate with the office as requested. The plan must 139 include interim goals to generate at least 40 percent of the 140 state’s energy from renewable sources by 2030. 141 (3) The plan must consider the potential impact of existing 142 and additional renewable energy incentives and programs with an 143 emphasis on solar and distributed resources, including energy 144 storage. The plan must also consider the impact of power 145 purchase agreements on attaining 100 percent renewable energy 146 generation. The office must submit a statewide plan outlining 147 potential strategies to reach the goals of this section to the 148 Governor, the President of the Senate, and the Speaker of the 149 House of Representatives by January 1, 2022, and must provide 150 updates on the progress of achieving the state’s renewable 151 energy goals each January 1 thereafter. 152 Section 3. This act shall take effect July 1, 2020.