Bill Text: FL H1267 | 2010 | Regular Session | Introduced

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Bill Title: Renewable Energy

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Energy & Utilities Policy (GGPC) [H1267 Detail]

Download: Florida-2010-H1267-Introduced.html

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HB 1267

1	A bill to be entitled
2	An act relating to renewable energy; providing legislative
3	findings; providing definitions; requiring each electric
4	utility in the state to collect from each residential,
5	commercial, and industrial customer a designated monthly
6	systems charge; requiring the electric utilities to
7	deposit collected funds into the Sustainable and Renewable
8	Energy Policy Trust Fund; creating a direct-support
9	organization for the Florida Energy Office; providing for
10	a board of directors of the direct-support organization;
11	providing for appointment of members and terms of office;
12	requiring a contract between the office and the direct-
13	support organization; providing for the use of the
14	deposited funds; requiring an annual audit; amending s.
15	366.91, F.S.; requiring that a purchase contract offered
16	to producers of renewable energy contain payment
17	provisions for energy and capacity based upon a public
18	utility's equivalent cost-recovery rate for certain clean
19	energy projects rather than the utility's full avoided
20	costs; amending s. 377.806, F.S.; revising the expiration
21	date for the Solar Energy System Incentives Program;
22	extending the period of time for which residents of the
23	state are eligible to receive rebates for specified solar
24	energy systems; revising the rebate amount for eligible
25	solar energy systems; providing a schedule for rebate
26	amounts based on the total wattage of the system;
27	providing an effective date.
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1. (1) The Legislature finds that there is a need
32	for a funding mechanism to support and finance a comprehensive
33	energy policy, especially as it relates to sustainable and
34	renewable energy, energy conservation, and energy efficiencies.
35	With such a stable funding mechanism, this state will realize
36	important long-term goals, including:
37	(a) Increased independence from foreign oil;
38	(b) Ensuring an adequate and reliable energy supply;
39	(c) The promotion of economic growth and new investment in
40	the creation of high-paying jobs;
41	(d) The mitigation adverse environmental impacts and
42	promotion of stewardship of the environment;
43	(e) Leading the nation in energy conservation and energy
44	efficiencies through needed support for implementing and
45	marketing the products of renewable energy research and
46	innovation; and
47	(f) Contributing to a sustainable and renewable energy
48	policy for the state.
49	(2) As used in this section, the term:
50	(a) "Direct-support organization" means an organization
51	that is:
52	1. A Florida corporation, not for profit, incorporated
53	under chapter 617, Florida Statutes, and approved by the
54	Department of State;
55	2. Organized and operated exclusively to obtain funds; to
56	request and receive grants, gifts, and bequests of moneys; to
57	acquire, receive, hold, invest, and administer in its own name
58	securities, funds, or property; and to make expenditures to
59	support the achievement of the goals stated under subsection (1)
60	and to increase public awareness of and support for the
61	Sustainable and Renewable Energy Trust Fund; and
62	3. Determined by the office to be operating in a manner
63	consistent with the goals stated under subsection (1).
64	(b) "Electric utility" means any municipal electric
65	utility, investor-owned electric utility, or rural electric
66	cooperative that owns, maintains, or operates an electric
67	generation, transmission, or distribution system within the
68	state.
69	(c) "Energy conservation" and "energy efficiencies" means
70	any activity that facilitates and promotes the use of cost-
71	effective energy conservation, energy-demand management, and
72	renewable energy technologies.
73	(d) "Office" means the Florida Energy Office.
74	(e) "Renewable energy" means solar photovoltaic energy,
75	solar thermal energy, geothermal energy, ocean thermal energy,
76	wave or tidal energy, wind, fuel cells, landfill gas, hydrogen
77	production and hydrogen conversion technologies, low-emission
78	advanced biomass conversion technologies, alternative fuels used
79	for electricity generation, including ethanol, biodiesel, or
80	other fuel produced in this state and derived from agricultural
81	produce, algae, food waste, or waste vegetable oil, usable
82	electricity from combined heat and power systems that have waste
83	heat recovery systems, thermal storage systems, and other energy
84	resources and emerging technologies that have significant
85	potential for commercialization and that do not involve the
86	combustion of coal, petroleum or petroleum products, municipal
87	solid waste, or nuclear fission.
88	(3) Beginning January 1, 2011, each electric utility shall
89	collect from each residential, commercial, and industrial
90	electric utility customer a monthly charge of 25 cents as a
91	systems benefits charge. The electric utilities shall deposit
92	the collected funds into the Sustainable and Renewable Energy
93	Policy Trust Fund.
94	(4)(a) The Florida Energy Office shall establish a direct-
95	support organization to provide assistance, funding, and support
96	for the office in carrying out its mission. This section governs
97	the creation, use, powers, and duties of the direct-support
98	organization.
99	(b) The direct-support organization shall be governed by a
100	board of directors. The board of directors shall consist of nine
101	members, as follows:
102	1. The chair of the Florida Public Service Commission, or
103	his or her designee.
104	2. The Secretary of Environmental Protection, or his or
105	her designee.
106	3. Two members appointed by the Governor, both of whom are
107	residential electric utility customers and one of whom has
108	experience relating to low-income housing concerns.
109	4. Two members appointed by the President of the Senate,
110	both of whom are members of the Senate and one of whom is a
111	member of the minority party.
112	5. Two members appointed by the Speaker of the House of
113	Representatives, both of whom are members of the House of
114	Representatives and one of whom is a member of the minority
115	party.
116	6. One member appointed by the Chief Financial Officer who
117	has experience related to renewable energy business or
118	commercial investments.
119	(b) The term of office of the board members shall be 3
120	years, except those members of the Senate and the House of
121	Representatives, who shall serve 2-year terms concurrent with
122	the 2-year elected terms of House members. The terms of the
123	initial appointees, except those members of the Senate and the
124	House of Representatives, shall be for 1 year, 2 years, or 3
125	years in order to achieve staggered terms. A member may be
126	reappointed when his or her term expires. The head of the office
127	or his or her designee shall serve as an ex officio member of
128	the board of directors.
129	(c) Members must be residents of this state. A majority of
130	the members must be actively involved with sustainable and
131	renewable energy systems and highly knowledgeable about the
132	office, its research, and its mission. A member may be removed
133	by the Governor, the President of the Senate, the Speaker of the
134	House of Representatives, or the Chief Financial Officer for
135	cause and with the approval of a majority of the members of the
136	board of directors. A vacancy shall be filled in the same manner
137	as the initial appointment.
138	(d) The direct-support organization shall operate under a
139	written contract with the office. The written contract must
140	provide for:
141	1. Certification by the office that the direct-support
142	organization is complying with the terms of the contract and is
143	doing so consistent with the goals and purposes of the
144	department and in the best interests of the state. This
145	certification must be made annually and reported in the official
146	minutes of a meeting of the direct-support organization.
147	2. The reversion of moneys and property held by the
148	direct-support organization:
149	a. To the office, if the direct-support organization is no
150	longer approved to operate for the office or if the direct
151	support organization ceases to exist; or
152	b. To the state, if the office ceases to exist.
153	3. The disclosure of the material provisions of the
154	contract and the distinction between the office and the direct-
155	support organization to donors of gifts, contributions, or
156	bequests, including such disclosure on all promotional and
157	fundraising publications.
158	(e)1. The office may permit the use of its property,
159	facilities, and personal services by the direct-support
160	organization, subject to this section.
161	2. The office may prescribe by contract any condition with
162	which the direct-support organization must comply in order to
163	use property, facilities, or personal services of the office.
164	3. The office may not permit the use of its property,
165	facilities, or personal services by any direct-support
166	organization organized under this section which does not provide
167	equal employment opportunities to all persons regardless of
168	race, color, national origin, gender, age, or religion.
169	(f) Any transaction or agreement between the direct-
170	support organization created by this section and another direct-
171	support organization or other entity must be approved by the
172	Governor.
173	(g) All moneys received by the direct-support organization
174	from federal and state grants, private contributions, and the
175	Sustainable and Renewable Energy Policy Trust Fund shall be
176	deposited into an account of the direct-support organization.
177	The direct-support organization shall use the collected charges
178	to support funding for sustainable and renewable energy
179	projects, including, but not limited to, grants to provide
180	funding in the following order of priority:
181	1. Any backlog of approved rebate applications for the
182	Solar Energy Systems Incentive Program.
183	2. The implementation of innovation to market projects,
184	with specific attention directed toward the number of in-state
185	jobs created.
186	3. Energy conservation and energy efficiency projects,
187	with specific attention directed to projects for low-income
188	housing, including rental units, rental homes, condominiums, and
189	single-family homes.
190	(h)1. The fiscal year of the direct-support organization
191	shall begin on July 1 of each year and end on June 30 of the
192	following year.
193	2. The direct-support organization shall submit to the
194	office its federal Internal Revenue Service Application for
195	Recognition of Exemption form and its federal Internal Revenue
196	Service Return of Organization Exempt from Income Tax form.
197	(i) The direct-support organization shall provide for an
198	annual financial audit in accordance with s. 215.981, Florida
199	Statutes.
200	Section 2. Subsection (3) of section 366.91, Florida
201	Statutes, is amended to read:
202	366.91 Renewable energy.-
203	(3) On or before January 1, 2006, each public utility must
204	continuously offer a purchase contract to producers of renewable
205	energy. The commission shall establish requirements relating to
206	the purchase of capacity and energy by public utilities from
207	renewable energy producers and may adopt rules to administer
208	this section. The contract shall contain payment provisions for
209	energy and capacity which are based upon the utility's
210	equivalent cost-recovery rate for projects constructed pursuant
211	to s. 366.92(4) full avoided costs, as defined in s. 366.051;
212	however, capacity payments are not required if, due to the
213	operational characteristics of the renewable energy generator or
214	the anticipated peak and off-peak availability and capacity
215	factor of the utility's avoided unit, the producer is unlikely
216	to provide any capacity value to the utility or the electric
217	grid during the contract term. Each contract must provide a
218	contract term of at least 10 years. Prudent and reasonable costs
219	associated with a renewable energy contract shall be recovered
220	from the ratepayers of the contracting utility, without
221	differentiation among customer classes, through the appropriate
222	cost-recovery clause mechanism administered by the commission.
223	Section 3. Subsection (1) and paragraph (b) of subsection
224	(2) of section 377.806, Florida Statutes, are amended to read:
225	377.806 Solar Energy System Incentives Program.-
226	(1) PURPOSE.-The Solar Energy System Incentives Program is
227	established within the commission to provide financial
228	incentives for the purchase and installation of solar energy
229	systems. Any resident of the state who purchases and installs a
230	new solar energy system of 2 kilowatts or larger for a solar
231	photovoltaic system, a solar energy system that provides at
232	least 50 percent of a building's hot water consumption for a
233	solar thermal system, or a solar thermal pool heater, from July
234	1, 2006, through June 30, 2015 2010, is eligible for a rebate on
235	a portion of the purchase price of that solar energy system.
236	(2) SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.-
237	(b) Rebate amounts.-The rebate amount shall be set at
238	$2.50 $4 per watt for the first year, $2 per watt for the second
239	and third years, and $1.50 per watt for each subsequent year,
240	based on the total wattage rating of the system. The maximum
241	allowable rebate per solar photovoltaic system installation
242	shall be as follows:
243	1. Twenty thousand dollars for a residence.
244	2. One hundred thousand dollars for a place of business, a
245	publicly owned or operated facility, or a facility owned or
246	operated by a private, not-for-profit organization, including
247	condominiums or apartment buildings.
248	Section 4. This act shall take effect July 1, 2010.

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