Florida Senate - 2022 COMMITTEE AMENDMENT Bill No. CS for CS for SB 1024 Ì655702ÇÎ655702 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/02/2022 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Rules (Bradley) recommended the following: 1 Senate Substitute for Amendment (384970) (with title 2 amendment) 3 4 Delete lines 44 - 126 5 and insert: 6 Section 2. Subsections (1) and (5) of section 366.91, 7 Florida Statutes, are amended to read: 8 366.91 Renewable energy.— 9 (1) The Legislature finds that: 10 (a) It is in the public interest to continuepromotethe 11 development of renewable energy resources in this state in a 12 manner that is fair and equitable to all public utility 13 customers. Renewable energy resources have the potential to help 14 diversify fuel types to meet Florida’s growing dependency on 15 natural gas for electric production, minimize the volatility of 16 fuel costs, encourage investment within the state, improve 17 environmental conditions, and make Florida a leader in new and 18 innovative technologies. The development and maturation of the 19 solar energy industry, the substantial decline in the cost of 20 solar panels, and the increase in customer-owned or -leased 21 renewable generation support the redesign of net metering by the 22 commission. 23 (b) Customer-owned or -leased renewable generation is not 24 available to many public utility customers who lack the 25 financial resources to purchase or lease rooftop solar panels or 26 who reside in multitenant buildings. The substantial growth of 27 customer-owned or -leased renewable generation has resulted in 28 increased cross-subsidization of the full cost of electric 29 service onto the public utility’s general body of ratepayers. 30 Therefore, the redesigned net metering rate structures required 31 in subsection (5)(d) must ensure that public utility customers 32 who own or lease renewable generation pay the full cost of 33 electric service and are not cross-subsidized by the public 34 utility’s general body of ratepayers. 35 (5)(a)On or before January 1, 2009,Each public utility 36 shall develop a standardstandardizedinterconnection agreement 37 and net metering program for customer-owned or -leased renewable 38 generation. The commission shall establish requirements relating 39 to the expedited interconnection and net metering of customer 40 owned or -leased renewable generation by public utilities and 41 shallmayadopt new rules to administer this section. 42 (b) Effective January 1, 2024, public utility net metering 43 programs for customer-owned or -leased renewable generation must 44 provide that: 45 1. Electricity used by the customer in excess of the 46 generation supplied by customer-owned or -leased renewable 47 generation is billed by the public utility in accordance with 48 normal billing practices; and 49 2. Excess customer-owned or -leased renewable generation 50 delivered to the public utility’s electric grid during the 51 customer’s regular billing cycle is credited to the customer’s 52 energy consumption for the next month’s billing cycle as 53 follows: 54 a. For energy credits produced from customer-owned or 55 leased renewable generation for which a standard interconnection 56 agreement is executed by both parties during calendar years 2024 57 and 2025, the customer’s energy usage is offset by 75 percent of 58 the amount credited. 59 b. For energy credits produced from customer-owned or 60 leased renewable generation for which a standard interconnection 61 agreement is executed by both parties during calendar years 2026 62 and 2027, the customer’s energy usage is offset by 50 percent of 63 the amount credited. 64 (c) A public utility customer who owns or leases renewable 65 generation for which a standard interconnection agreement is 66 executed by both parties before December 31, 2023, is granted 20 67 years to continue to use the net metering rate design and rates 68 that applied at the time the standard interconnection agreement 69 was executed by both parties. This paragraph applies to 70 customers who purchase or lease real property upon which 71 customer-owned or -leased renewable generation is installed for 72 all or part of that 20-year period. 73 (d) The commission shall adopt subsequent rules to become 74 effective January 1, 2028, which establish a new program design 75 for customer-owned or -leased renewable generation for which a 76 standard interconnection agreement was executed by both parties 77 on or after January 1, 2028. The new program design must comply 78 with the following criteria: 79 1. Each public utility customer who owns or leases 80 renewable generation must pay the full cost of electric service 81 and may not be subsidized by the public utility’s general body 82 of ratepayers after December 31, 2027. 83 2. All energy delivered by the public utility must be 84 purchased at the public utility’s applicable retail rate, and 85 all energy delivered by the customer-owned or -leased renewable 86 generation to the public utility must be credited to the 87 customer at the public utility’s full avoided costs. 88 3. The commission shall establish revised guidelines for 89 net metering credits, netting intervals, fees, and charges as 90 described herein, so as to ensure that the renewable generation 91 subsidy is zero by January 1, 2028. 92 (e) After the effective date of the subsequent net metering 93 rules described in paragraph (d), a public utility may petition 94 the commission for approval to impose fixed charges, including 95 base facilities charges, electric grid access fees, or monthly 96 minimum bills, to help ensure that the public utility recovers 97 the fixed costs of serving customers who engage in net metering 98 and that the general body of public utility ratepayers does not 99 subsidize customer-owned or -leased renewable generation. 100 (f)1. If at any time the statewide penetration rate of 101 customer-owned or -leased renewable generation exceeds 6.5 102 percent, the commission, upon petition or on its own motion, 103 must initiate rulemaking to adopt a new program design that 104 complies with subparagraphs (d)1. and 2. A new program design 105 adopted pursuant to this subparagraph becomes effective 60 days 106 after rule adoption and shall apply to customer-owned or -leased 107 renewable generation for which a standard interconnection 108 agreement was executed by both parties after that effective 109 date. 110 2. For purposes of this paragraph, the penetration rate 111 must be calculated by dividing the aggregate gross power rating 112 (alternating current) of all in-service customer-owned or 113 leased renewable generation in all investor-owned electric 114 utilities’ service territories by the total summer peak demand 115 of all investor-owned electric utilities. 116 (g) This subsection establishes the minimum requirements 117 for each public utility net metering program. A public utility 118 may petition the commission at any time for approval to offer a 119 net metering program on terms that are more favorable to 120 customers who own or lease renewable generation than the terms 121 specified in this subsection or in commission rules adopted 122 pursuant to this subsection. 123 (h) The commission shall require a public utility 124 requesting a change in base rates under s. 366.06 to report to 125 the commission the impact of net metering on the public 126 utility’s revenues and cost of service. 127 128 ================= T I T L E A M E N D M E N T ================ 129 And the title is amended as follows: 130 Delete lines 9 - 15 131 and insert: 132 classes of ratepayers; providing the terms for public 133 utility net metering programs after a specified date; 134 authorizing certain customers who own or lease 135 renewable generation to remain under the net metering 136 rules that initially applied to those customers for a 137 specified time; providing applicability; requiring the 138 Public Service Commission to adopt rules that meet 139 certain requirements by a specified date; authorizing 140 public utilities to petition the commission, after a 141 specified date, for approval of certain charges; 142 providing conditions under which rulemaking must be 143 initiated if the penetration rate of customer-owned or 144 -leased renewable generation meets a specified 145 threshold; authorizing public utilities to petition 146 the commission to offer certain alternative net 147 metering programs; requiring certain