Florida Senate - 2022 CS for SB 1764 By the Committee on Appropriations; and Senator Albritton 576-03238-22 20221764c1 1 A bill to be entitled 2 An act relating to the Municipal Solid Waste-to-Energy 3 Program; creating s. 377.814, F.S.; creating the 4 Municipal Solid Waste-to-Energy Program within the 5 Department of Agriculture and Consumer Services for a 6 specified purpose; defining terms; requiring the 7 department, subject to appropriation, to provide 8 annual financial assistance grants to municipal solid 9 waste-to-energy facilities that meet certain 10 requirements; requiring the department to distribute 11 funds to qualifying applicants based on certain 12 criteria; requiring the department to establish a 13 process to verify the amount of certain electric power 14 purchases; directing the Public Service Commission to 15 provide assistance in verifying grant eligibility; 16 requiring the department, subject to appropriation, to 17 provide incentive grants to municipal solid waste-to 18 energy facilities to assist with certain costs; 19 specifying requirements for applying for the funding; 20 requiring the Department of Environmental Protection 21 to provide assistance in determining grant eligibility 22 and establishing requirements; requiring the 23 department to perform grant overview; prohibiting 24 funds from being used for specified purposes; 25 establishing priority for funding for the grants; 26 requiring the Department of Agriculture and Consumer 27 Services to adopt rules; providing appropriations; 28 authorizing the balance of certain unexpended funds to 29 be carried forward for a specified number of years; 30 authorizing positions; providing an effective date. 31 32 WHEREAS, as provided in s. 366.91(1), Florida Statutes, the 33 Legislature has determined that it is in the public interest to 34 promote the development of renewable energy resources in this 35 state, and 36 WHEREAS, under s. 366.91, Florida Statutes, municipal solid 37 waste-to-energy facilities that use biomass as a fuel or energy 38 source are deemed to be producing renewable energy, and 39 WHEREAS, municipal solid waste-to-energy facilities provide 40 a practical and sustainable solution to reducing landfill waste, 41 reducing volume by about 87 percent, and 42 WHEREAS, the Legislature recognizes the benefits that 43 municipal solid waste-to-energy facilities contribute to the 44 state and its local communities, and 45 WHEREAS, the Legislature intends to incentivize the 46 production and sale of energy from municipal solid waste-to 47 energy facilities through grant programs, NOW, THEREFORE, 48 49 Be It Enacted by the Legislature of the State of Florida: 50 51 Section 1. Section 377.814, Florida Statutes, is created to 52 read: 53 377.814 Municipal Solid Waste-to-Energy Program.— 54 (1) CREATION AND PURPOSE OF THE PROGRAM.—The Municipal 55 Solid Waste-to-Energy Program is created within the department. 56 The purpose of the program is to provide financial assistance 57 grants and incentive grants to municipal solid waste-to-energy 58 facilities to incentivize the production and sale of energy from 59 municipal solid waste-to-energy facilities while also reducing 60 the amount of waste that would otherwise be disposed of in a 61 landfill. 62 (2) DEFINITIONS.—For purposes of this section, the term: 63 (a) “Department” means the Department of Agriculture and 64 Consumer Services. 65 (b) “Municipal solid waste-to-energy facility” means a 66 publicly owned or government affiliate-owned facility that uses 67 an enclosed device using controlled combustion to thermally 68 break down solid waste to an ash residue that contains little or 69 no combustible material and that produces electricity, steam, or 70 other energy as a result. The term does not include facilities 71 that primarily burn fuels other than solid waste even if such 72 facilities also burn some solid waste as a fuel supplement. The 73 term does not include facilities that primarily burn vegetative, 74 agricultural, or silvicultural wastes, bagasse, clean dry wood, 75 methane or other landfill gas, wood fuel derived from 76 construction or demolition debris, or waste tires, alone or in 77 combination with fossil fuels. 78 (3) FINANCIAL ASSISTANCE GRANT PROGRAM.—The department, 79 subject to appropriation, shall provide annual financial 80 assistance grants to municipal solid waste-to-energy facilities 81 that entered into a power purchase agreement with an electric 82 utility before January 1, 2022, which included capacity and 83 energy payments, and the owner of the municipal solid waste-to 84 energy facility has entered into a new or amended power purchase 85 agreement that either no longer includes capacity payments or 86 includes capacity and energy payments in an amount less than the 87 total of the capacity and energy payments the municipal solid 88 waste-to-energy facility received under the power purchase 89 agreement entered into before January 1, 2022. 90 (a) To apply for an annual financial assistance grant, the 91 owner of a municipal solid waste-to-energy facility must submit 92 an application to the department. The application must include 93 the name of the applicant’s municipal solid waste-to-energy 94 facility, the name of the utility purchasing the electric power 95 from the municipal solid waste-to-energy facility, the total 96 capacity and energy payment the municipal solid waste-to-energy 97 facility received during the last year of the power purchase 98 agreement entered into before January 1, 2022, and the amount of 99 energy delivered to and the total amount paid for such power by 100 an electric utility pursuant to a new or amended power purchase 101 agreement during the preceding state fiscal year. 102 (b) The department shall distribute funds, subject to 103 appropriation, to each qualifying applicant at a rate of 2 cents 104 per kilowatt-hour of electric power purchased by an electric 105 utility during the preceding state fiscal year, not to exceed 106 the difference between the total capacity and energy payment the 107 municipal solid waste-to-energy facility received during the 108 last year of the power purchase agreement entered into before 109 January 1, 2022, and the total of the capacity and energy 110 payment the municipal solid waste-to-energy facility received 111 under a new or amended power purchase agreement during the 112 preceding state fiscal year. To the extent that funds are not 113 available to provide financial assistance to each qualifying 114 applicant for every qualifying kilowatt-hour purchased, the 115 department shall prorate the funds on an equitable basis. 116 (c) The department shall establish a process to verify the 117 amount of electric power purchased from a municipal solid waste 118 to-energy facility by an electric utility during each preceding 119 state fiscal year. The Public Service Commission shall provide 120 assistance to the department to help verify the information 121 provided pursuant to paragraph (a). 122 (4) INCENTIVE GRANT PROGRAM.—The department, subject to 123 appropriation, shall provide incentive grants to municipal solid 124 waste-to-energy facilities to assist with the planning and 125 designing for constructing, upgrading, or expanding a municipal 126 solid waste-to-energy facility, including necessary legal or 127 administrative expenses. 128 (a) To qualify for an incentive grant, the owner of a 129 municipal solid waste-to-energy facility must apply to the 130 department for funding; provide matching funds on a dollar-for 131 dollar basis; and demonstrate that the project is cost 132 effective, permittable, and implementable and complies with s. 133 403.7061. 134 (b) The Department of Environmental Protection shall 135 provide assistance to the department in determining the 136 eligibility of grant applications and establishing requirements 137 to ensure the long-term and efficient operation and maintenance 138 of facilities constructed or expanded under an incentive grant. 139 (c) The department shall perform adequate overview of each 140 grant application and grant award, including technical review, 141 regular inspections, disbursement approvals, and auditing, to 142 implement this section. 143 (d) Funds awarded under the incentive grant program may not 144 be used to promote, establish, or convert a residential 145 collection system that does not provide for the separate 146 collection of residential solid waste from recovered materials 147 as defined in s. 403.703. 148 (e) The department shall require the termination or 149 repayment of incentive grant funds if the department determines 150 that program requirements are not being met. 151 (5) FUNDING.—Funds appropriated for the Municipal Solid 152 Waste-to-Energy Program must first be used for financial 153 assistance grants. Any funds remaining in a state fiscal year 154 after disbursement to all qualifying applicants may be used to 155 fund the incentive grant program. 156 (6) RULES.—The department shall adopt rules to implement 157 and administer this section, including establishing grant 158 application processes for financial assistance grants and 159 incentive grants. The rules shall include application deadlines 160 and establish the supporting documentation necessary to be 161 provided to the department. In adopting rules relating to the 162 financial assistance grant program, the department shall consult 163 the Public Service Commission. In adopting rules for the 164 incentive grant program, the department shall consult the 165 Department of Environmental Protection. 166 Section 2. (1) For the 2022-2023 fiscal year, the sum of 167 $100 million in recurring funds is appropriated from the General 168 Revenue Fund to the Department of Agriculture and Consumer 169 Services for the Municipal Solid Waste-to-Energy Program, as 170 provided in s. 377.814, Florida Statutes. 171 (2) Notwithstanding s. 216.301, Florida Statutes, and 172 pursuant to s. 216.351, Florida Statutes, funds allocated for 173 the purpose of this section which are not disbursed by June 30 174 of the fiscal year in which the funds are allocated may be 175 carried forward for up to 5 years after the effective date of 176 the original appropriation. 177 Section 3. For the 2022-2023 fiscal year, the sums of 178 $149,832 in recurring funds and $9,984 in nonrecurring funds are 179 appropriated from the General Revenue Fund to the Department of 180 Agriculture and Consumer Services, and two full-time equivalent 181 positions with associated salary rate of 80,540 are authorized, 182 for the purpose of implementing this act. 183 Section 4. This act shall take effect July 1, 2022.