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.