FGBC Legislative Report May 15

FGBC Legislative Report
May 15, 2008

2008 Summary of Energy Legislation

HB 7135 - Energy

Subject to the Governor’s veto powers, the effective date of this bill is July 1, 2008, except as otherwise provided.

By: Environment & Natural Resources Council; Mayfield; Kreegel

Tied Bills: None

Identical / Similar Bills: CS/CS/CS/SB 1544; includes part(s) of CS/HB37; HB 229; HB 457;

CS/HB 697; HB 1165; HB 1191; HB 1375; HB 1399; CS/CS/HB 1413; HB 7065

Committee(s) of Reference: None

Background:

During the 2007 Legislative Session, the Legislature enacted comprehensive legislation to promote energy security and affordability by encouraging energy efficiency and diversity. Although this legislation was vetoed, approximately $62 million in funds were made available to address energy goals.

In the summer of 2007, Governor Crist issued three executive orders addressing issues related to global climate change. The executive orders: established reduction targets for greenhouse gas (GHG) emissions; directed the Department of Environmental Protection (DEP) to implement, through agency rules, a regulatory cap on electric utility GHG emissions and, through adoption of California’s proposed standards, GHG emission limits on new motor vehicles; requested the Public Service Commission (PSC) to implement net metering and a renewable portfolio standard (RPS) for electric utilities; and created the Governor’s Action Team on Energy and Climate Change to develop additional energy and climate change policies.

The Florida Energy Commission, created by the 2006 Legislature, also issued a series of recommendations addressing energy affordability, security, efficiency, reliability and global climate change. In response to these developments, the House Environment & Natural Resources Council held a symposium on the “Science and Economics of Climate Change” and a series of workshops to discuss the interrelated issues of energy affordability, security, efficiency, reliability and global climate change. These discussions focused on international, national and state options to mitigate climate change and their potential costs and benefits.

This bill builds on last year’s legislation and includes policies relating to energy affordability, security, efficiency, and reliability and also provides a responsible response to concerns with global climate change and anticipated federal legislation. The bill provides for a new governance structure to enable the state to establish and implement a comprehensive strategy to address these interrelated and rapidly evolving issues, and includes the following provisions:

Hearing on Order of Taking Property by Electric Utilities (s. 74.051, F.S.) - Provides that it is the intent of the Legislature that the court, when practicable, conduct the hearing within 120 days after the petition is filed when the petitioner is an electric utility that is seeking to appropriate property for an electric generation plant, associated facility of such plant, an electric substation, or a power line; provides additional legislative intent that the court, when practicable, issue its order of taking no more than 30 days after the conclusion of the hearing.

Telecommuting (ss. 110.171 and 255.249, F.S.) - Encourages the use of telecommuting by state agencies for qualified employees by requiring each state agency’s telecommuting program be posted on the state agency’s website to allow access by employees and the public. Requires each state agency telecommuting program to provide measurable financial benefits associated with the program.

Renewable Energy Devices within a Condominium Unit (s. 163.04, F.S.) - Provides that condominium governing documents cannot prohibit unit owners from placing renewable energy devices within the boundaries of the condominium unit, and removes the three-story height restriction for installation of solar collectors on residential properties.

State Comprehensive Plan/Energy and Climate Change (s. 186.007 and 187.201, F.S.) - Amends provisions relating to air quality, energy, and land use goals and policies of the State Comprehensive Plan. Includes encouragement of the development of low carbon emitting electric power plants, and includes under the land use goal, the siting of nuclear power plants to meet the state’s determined need for electric power generation.

Property Tax Exemption for Renewable Energy Source Devices (ss. 196.012(14) and 196.175, F.S.) - Removes the expiration date of the property tax exemption for real property on which a renewable energy source device is installed and is being operated, thereby allowing property owners to once again apply for the exemption, effective January 1, 2009. Retains the period of each exemption at 10 years. Revises the options for calculating the amount of the exemption for properties with renewable energy source devices by limiting the exemption to the amount of the original cost of the device, including the installation cost, but not including the cost of replacing previously existing property. Removes outdated and obsolete language from the definition of “renewable energy source device,” provided in s. 196.012(14), F.S.

Sales Tax Exemption for Renewable Energy Technologies (s. 212.08, F.S.) – Makes revisions to the existing sales and use tax exemption for renewable energy technologies. Revises the definition of “ethanol” to mean anhydrous denatured alcohol produced by the “conversion of carbohydrates” rather than by the “fermentation of plant sugars.” Specifies that items eligible for the sales tax exemption are limited to one refund and requires a purchaser who receives a refund to notify a subsequent purchaser on the sales invoice or other proof of purchase that the item is no longer eligible for a tax refund. Transfers current responsibilities of the Department of Environmental Protection (DEP) to the Florida Energy and Climate Commission.

Capital Investment Tax Credit (s. 220.191, F.S.) – Makes revisions to the existing capital investment tax credit section to provide for the transferability of tax credits for a project that includes locating a new solar panel manufacturing facility in the state that generates a minimum of 400 jobs within 6 months with an average salary of at least $50,000. Limits credit that can be transferred to the lesser of the qualifying business’ tax liability for that year or the credit amount granted for that year.

Renewable Energy Technologies Investment Tax Credit (s. 220.192, F.S.) – Makes revisions to the existing corporate income tax credit provision for investment costs associated with hydrogen vehicles and hydrogen vehicle fueling stations, commercial stationary fuel cells, and biofuels, including biodiesel and ethanol. Provides for the transferability of tax credits and authorizes existing tax credits to be passed through to underlying partners, members, or owners by written agreement. Transfers current responsibilities of the Department of Environmental Protection (DEP) to the Florida Energy and Climate Commission.

Renewable Energy Production Tax Credits (s. 220.193, F.S.) - Makes revisions to the existing corporate renewable energy production tax credit provision to include electricity “sold” as well as electricity “used” by the producer when the producer would have otherwise been required to purchase the electricity. Clarifies that corporations that own an interest in a partnership can claim the tax credits earned by those partnerships for generating renewable energy. Allows taxpayers using the alternative minimum tax process to also utilize the credit. Provides for retroactivity of the amendments to the section (to the effective date of the law establishing the credit) so that entities that have been prohibited from taking advantage of the production tax credits, due to a lack of clarification, may now claim such credit.

Construction of Electric Transmission Lines on State Uplands (s. 253.02, F.S.) - Authorizes the Board of Trustees of the Internal Improvement Trust Fund (board) to delegate its authority to grant easements across state lands for the construction of electric transmission lines to the DEP. Requires the electric utility to compensate the state in an amount equal to the market value of the interest acquired and vest in the board fee simple title to replacement lands that must be 1.5 times the size of the easement acquired when the DEP approves such easements for electric transmission lines on behalf of the board. Grants the board the discretion to determine the amount of replacement lands within a range of 1 to 2 times the size of the easement granted where the board approves the grant of an easement for electric transmission lines across state lands.

Green State Buildings (ss. 255.251-255.257, F.S.) - Provides all state agency facilities constructed and renovated by the state comply with the Leadership in Energy and Environmental Design (LEED) rating system, the Green Building Initiative’s Green Globes rating system, the Florida Green Building Coalition standards, or a nationally recognized, high performance green building rating system as approved by the Department of Management Services (DMS). Provides requirements for state buildings relating to energy management and addresses life-cycle costs in public facilities. Requires each state agency occupying space within buildings owned or managed by the DMS to compile a list of state-owned buildings (that are over 5,000 square feet in area and for which the agency is responsible for paying utility and operating expenses as they relate to energy use) suitable for a guaranteed energy performance saving contracts. Requires the DMS to consult with state agencies and create a schedule to prioritize state-owned buildings suitable for energy conservation projects by July 1, 2009. The schedule is to provide a deadline for guaranteed energy performance savings contract improvements to be made.

Green Government Buildings (Section 22) - Requires all county, municipal, school district, water management district, state university, community college, and court buildings be constructed to meet the LEED rating system, Green Globes rating system, Florida Green Building Coalition standards, or other nationally recognized building rating system. Provides applicability of section to buildings whose architectural plans are started after July 1, 2008. Authorizes St. Petersburg College to provide training and educational opportunities that will ensure that green building rating system certifying agents are available to work with entities as they construct public buildings to meet green building rating system standards.

Climate-friendly Public Business (s. 286.29, F.S.) - Creates the Florida Climate Friendly Preferred Products List to be used by state agencies for purchasing decisions. Requires state entities to contract with facilities for meeting and conference space from hotels or conference facilities granted the “Green Lodging” designation. Requires each state agency to ensure that all maintained vehicles meet certain minimum maintenance schedules. Requires that, when procuring a new vehicle, all state agencies, state universities, community colleges, and local governments procure vehicles with the greatest fuel efficiency available for a given use class when fuel-economy data are available. Requires all state agencies to use ethanol and biodiesel blended fuels when available.

Deferred Payment Commodity Contracts (s. 287.063, F.S.) - Deletes a subparagraph limiting agencies’ authority to obligate an annualized amount of payments in excess of current operating capital outlay appropriations. Adds a provision that the payment term may not exceed the useful life of the equipment unless the contract provides for the replacement or extension of the useful life of the equipment during the term of the loan. Provides that the annualized amount of a deferred-payment contract must be supported from available recurring funds. . Consolidated Financing of Deferred-Payment Purchases (s. 287.064, F.S.) - Provides that a master equipment financing agreement may finance the cost of energy, water, or wastewater efficiency and conservation measures for a term of repayment that may exceed 5 years but not more than 20 years.

DMS/DOT Biofuel Analysis (s. 287.16, F.S.) – Directs the Department of Management Services (DMS) to conduct, in coordination with the Department of Transportation (DOT), an analysis of fuel additive and biofuel use by the DOT through its central fueling facilities. Directs the DMS to encourage other state government entities to analyze transportation fuel usage and report such information to the DMS.

Innovation Incentive Program (s. 288.1089, F.S.) – Authorizes the Office of Tourism, Trade, and Economic Development to provide incentive awards to alternative and renewable energy projects. Establishes criteria for these projects, authorizes Enterprise Florida, Inc., to evaluate proposals for the awards, and requires Enterprise Florida, Inc., to solicit comments and recommendations from the Florida Energy and Climate Commission for alternative and renewable energy project proposals.

High Occupancy Vehicles (HOV) Lanes (s. 316.0741, F.S.) - Authorizes the use of HOV lanes by specified hybrid, low-emission, and energy-efficient vehicles. Authorizes certain vehicles having decals to use any HOV lane redesignated as high-occupancy toll lanes without payment of a toll.

Placement of Electric Transmission Lines on Department of Transportation (DOT) Controlled Rights -of-Way (s. 337.401, F.S.) - Provides that for transmission lines that operate more than 69 kilovolts, and where there is no practical alternative available, DOT rules must provide for placement of, and access to, transmission lines within the right-of-way of any department controlled public roads, including longitudinally within limited access facilities to the greatest extent allowed by federal law, provided that compliance with minimum clear zone and other safety standards established by rules or regulations is achieved. Provides that when the DOT notifies an electric utility that the property where the transmission lines have been co-located is to be expanded, the electric utility will relocate their transmission lines at the utility’s expense.

Metropolitan Planning Organizations (s. 339.175, F.S.) – Adds “greenhouse gas emissions” to the list of the negative impacts of transportation systems that the Legislature wishes to minimize while promoting the management, operation, and development of these transportation systems. Provides that each Metropolitan Planning Organization is encouraged to consider strategies that integrate transportation and land use planning to provide for sustainable development and reduce greenhouse gas emissions.

Public Service Commission (PSC) Nominating Process (ss. 350.01, 350.012, 350.03, 350.031, 350.061, and 350.0614, F.S.) – Provides that a Public Service Commissioner seeking reappointment to the commission apprise the PSC Nominating Council (Nominating Council) no later than June 1 prior to the year in which their term expires and changes the beginning of the chair’s term to January 2 of the first year of the term to coincide with the terms of the commissioners. Provides that “the Governor shall have the same power to remove, suspend, or appoint to fill vacancies in the office of commissioners as in other offices,” as set forth in Art. IV, s. 7, of the State Constitution.

Renames the Committee on PSC Oversight as the Committee on Public Counsel Oversight and removes the Oversight Committee’s authority and responsibility to recommend applicants to the Governor for appointment to the PSC, but retains the committee’s authority for oversight of the Public Counsel and authority to file complaints with the Commission on Ethics for alleged violations of the chapter by commissioners, former commissioners, former commission employees, or members of the PSC Nominating Council.

Reverts commissioner selection process to the pre-2005 process, whereby the Nominating Council screens applicants and makes recommendations to the Governor. Clarifies that the Governor has 30 “consecutive” calendar days to make an appointment after receipt of the Nominating Council’s recommendations. Provides that, after an appointment is made to fill a vacancy occurring due to expiration of the term, a successor Governor may, within 30 days after taking office, recall the appointment under specified circumstances.

Increases the membership of the Nominating Council from nine to twelve to consist of six members appointed by the Speaker of the House of Representatives, including three representatives; and six members appointed by the President of the Senate, including three senators. Requires that one legislative member from each chamber must be from the minority party. Provides that the President of the Senate appoint the chair in even numbered years and the vice chair in odd-numbered years, and the Speaker of the House of Representatives appoint the chair in odd-numbered years and the vice chair in even numbered years. Provides that the Nominating Council send to the Governor “not fewer than three persons” per vacancy. Changes the deadline for the Nominating Council to recommend applicants to the Governor to September 15 to shorten the overall length of time for the selection process.

Terminates the current Nominating Council members’ terms on June 30, 2008. Provides for reappointment of the Nominating Council, and provides for staggered terms. Establishes the beginning date for nonlegislator Nominating Council member terms as January 2 after initial terms under the act expire.

Jurisdiction of the Public Service Commission (PSC) over Municipal Electric Utilities (s. 366.04, F.S.) - Requires each municipality that operates an electric utility that serves two cities in the same county, is located in a non charter county, has between 30,000 and 35,000 retail electric customers as of September 30, 2007, and does not have a service territory that extends beyond its home county as of September 30, 2007, to conduct a referendum election of all its retail electric customers to determine whether a separate electric utility authority should be created to operate the business of the electric utility in the affected municipal utility. If a majority of the retail electric customers vote in favor of creating the authority, the municipal electric utility must provide each Legislative member whose district includes any part of the utility’s service territory a proposed charter that transfers the utility’s operations to a duly-created authority.

Energy Efficiency and Conservation (ss. 366.81 and 366.82, F.S.) - Revises the Florida Energy Efficiency and Conservation Act (FEECA), to explicitly allow efficiency and conservation investments across generation, transmission, and distribution as well as efficiencies within the user base; to encourage the development of demand-side renewable energy; and to provide criteria the Public Service Commission (PSC) is to consider when evaluating proposed conservation and efficiency measures. The criteria the PSC is required to consider include the following:

The costs and benefits to customers participating in the measure (Participants test).
The costs and benefits to the general body of ratepayers as a whole, including both

utility incentives and participant contributions (similar to a Total Resource Cost test or

TRC test but including the costs of incentives).

The need for incentives to promote both customer-owned and utility-owned energy

efficiency and renewable energy systems.

The costs imposed by state and federal regulations on the emissions of greenhouse

gases.

The bill further provides budget authority for the PSC to expend up to $250,000 from the

Florida Public Service Regulatory Trust Fund to obtain technical consulting assistance. The

newly-created Florida Energy and Climate Commission must be included in the proceedings

to adopt goals and must file with the PSC comments on the proposed goals.

The PSC may require modifications or additions to a utility’s plans and programs when there

is a public interest consistent with conservation, energy efficiency, and demand-side

renewable energy system measures. The bill grants the PSC flexibility to modify or deny

plans and programs that would have an undue impact on the costs passed on to ratepayers.

The bill also grants the PSC authority, for those utilities over which it has rate-setting

authority, to provide financial rewards for utilities which exceed their goals and financial

penalties for utilities which fail to meet their goals, including but not limited to the sharing

of generation, transmission, and distribution cost savings associated with conservation,

energy efficiency, and demand-side renewable energy system additions. In addition, the bill

authorizes the PSC to allow an investor owned electric utility an additional return on equity

of up to 50 basis points for exceeding 20 percent of their annual load growth through

energy efficiency and conservation measures. The additional return on equity is to be

established by the PSC through a limited proceeding.

Environmental Cost Recovery (s. 366.8255, F.S.) - Revises the definition of “environmental compliance costs” to include the costs or expenses prudently incurred for the quantification, reporting, and third party verification as required for participation in greenhouse gas emission registries for greenhouse gases as defined in s. 403.44, F.S.; and costs or expenses prudently incurred for scientific research and geological assessments of carbon capture and storage conducted in Florida for the purpose of reducing an electric utility’s greenhouse gas emissions when such costs or expenses are incurred in joint research projects with State of Florida government agencies and State of Florida universities.

Net Metering (s. 366.91, F.S.) - Expands the term “biomass” to include waste, byproducts or products from agricultural and orchard crops, waste or co-products from livestock and poultry operations, and waste or byproducts from food processing.

Requires investor-owned utilities to develop a standardized interconnection agreement and net metering program for customer-owned renewable generation on or before January 1, 2009, and directs municipal electric utilities and rural electric cooperatives that sell electricity at retail to develop a standardized interconnection agreement and net metering program for customer-owned renewable generation, as well. Directs each governing authority to establish requirements relating to such.

Requires that if a utility is purchasing power generated from biogas produced by the anaerobic digestion of agricultural waste, including food waste and other agricultural byproducts, that net metering be available at a single metering point or be available as a part of conjunctive billing of multiple points for a customer at a single location on the condition that the provision of such service is not projected to result in higher costs of electric services to the general body of ratepayers or adversely affect the adequacy or reliability of electric service to all customers.

Renewable Portfolio Standard (s. 366.92, F.S.) - Directs the Public service Commission (PSC) to adopt a rule for a renewable portfolio standard (RPS) requiring each provider, which includes an investor-owned utility, but not a municipal electric utility or a rural electric cooperative, to supply renewable energy to its customers, either directly, by procuring, or indirectly providing through the purchase of Renewable Energy Credits (RECs). Requires the rule to provide for the following:

Methods of managing the cost of compliance with the RPS whether through direct

supply, procurement of renewable power, or through the purchase of RECs.

Appropriate compliance measures and the conditions under which noncompliance can

be excused due to a determination by the commission that the supply of renewable

energy or RECs was not adequate to satisfy the demand for such energy, or that the cost

of securing renewable energy or RECs was cost prohibitive.

An appropriate period of time for which renewable energy credits may be used for

purposes of compliance with the RPS.

The monitoring of compliance with and enforcement of the requirements of this

section.

A means of ensuring that energy credited toward compliance with the provisions of the

RPS not be credited toward any other purpose.

Development of procedures to track and account for RECs, including ownership of RECs

that are derived from a customer-owned renewable energy facility as a result of any

action by a customer of an electric power supplier that is independent of a program

sponsored by that supplier.

Conditions and options for the repeal or alteration of the rule in the event that new

provisions of Federal law supplant or conflict with the rule.

Provides that the rule may give added weight to energy provided by wind and solar

photovoltaic over other forms of renewable energy. Requires the PSC to present the draft

rule for legislative consideration by February 1, 2009, and prohibits the rule from being

implemented until ratified by the Legislature.

Provides rulemaking authority to the PSC for providing annual cost recovery and incentive based adjustments to authorized rates of return on common equity to providers to incentivize renewable energy. Authorizes the PSC to approve projects and power sales agreements with renewable power producers, and the sale of renewable energy credits which are needed to comply with the RPS. Provides that if there is a conflict between this provision and s. 366.91(3) and (4), F.S., the RPS section will supersede s. 366.91(3) and (4), F.S., in terms of paying more than avoided costs. Provides that nothing in the section shall impede or impair terms and conditions in existing contracts.

Directs the PSC to provide for full cost recovery under the environmental cost-recovery clause of all reasonable and prudent costs incurred by a provider for renewable energy projects that are zero greenhouse gas emitting at the point of generation, up to a total of 110 MW statewide. Provides conditions and a July 1, 2009, deadline for filing for such cost recovery. Directs municipal electric utilities and rural electric cooperatives to develop standards for the promotion, encouragement, and expansion of the use of renewable energy resources and energy conservation and efficiency measures.

Alternative Cost Recovery Mechanisms for Nuclear Power Plants (s. 366.93, F.S.) - Specifies that the advanced cost recovery requirement consists of the costs incurred in the siting, design, licensing, construction, or operation of new, expanded, or relocated electric transmission lines and facilities that are necessary to serve a nuclear power plant. Furthermore, the bill allows utilities to recover preconstruction and construction costs associated with such electrical transmission lines and facilities incurred after the issuance of a final order granting a determination of need for a nuclear power plant, rather than at the time that the nuclear power plant commences operation. In the event that the utility elects not to complete or is precluded from completing construction of any new, expanded, or relocated electrical transmission lines or facilities of a nuclear power plant, the utility may recover all prudent costs incurred after the issuance of the final order granting the determination of need for the nuclear power plant. This is intended to lower capital costs by reducing financial risk and allowing utilities to begin recovering costs prior to operation, and therefore shortening the required financing period.

Florida Energy and Climate Commission (ss. 377.601 - 377.806 and 377.901, F.S.) - Provides for a transfer of the Florida Energy Commission from the Office of Legislative Services (and authorizes 4 FTEs) and the State Energy Program from the Department of Environmental Protection (DEP) to the Florida Energy and Climate Commission (commission) in the Executive Office of the Governor and repeals the Florida Energy Commission. The bill provides for the following:

The FECC is to be comprised of nine (9) members, seven (7) of which are appointed by the Governor, for 3-year terms. The other two positions are to be appointed, one each, by the Commissioner of Agriculture (Commissioner), and the Chief Financial Officer (CFO). Provides for staggered terms.

The Governor is to select from three people nominated by the Florida Public Service Commission Nominating Council (Nominating Council) for each seat on the commission. In addition, the Commissioner and the CFO are each to select from three people nominated by the Nominating Council.

The Nominating Council is to submit the nominations by September 1 of those years in which the terms are to begin the following October, or within 60 days after a vacancy occurs for any reason other than the expiration of the term.

The Governor, the Commissioner, and the CFO may proffer names to be considered by the Nominating Council.

The Governor is to select a chair from one of the nine people appointed to the FECC.

If the Governor, Commissioner, or the CFO does not make an appointment within 30 days of receiving the Nominating Council’s recommendations or if the Senate fails to confirm the Governor’s appointment to the commission, the Nominating Council is to initiate the nominating process within 30 days.

The Governor or his or her successor can recall an appointee.
A commission member must be an expert in specified fields.
The chair may designate specified ex-officio, non-voting members to provide information and advice to the commission.
The commission must meet at least six times a year and may employ staff and counsel, as needed. The commission is directed to perform specific duties that are enumerated in the section.
The commission must submit an annual report to the Governor and Legislature reflecting its activities and making recommendations of policies for improvement of the state’s response to energy supply and demand and its effect on the health, safety, and welfare of citizens.

Clarifies that the definition of “energy resources” includes “energy converted from solar radiation, wind, hydraulic potential, tidal movements, geothermal sources, biomass, and other energy sources the commission determines to be important to the production or supply of energy.”

Expands the requirement of the Department of Management Services to furnish data on agencies’ energy consumption to include their emissions of greenhouse gases.

Renames the “Florida Renewable Energy Technologies and Energy Efficiency Act,” as the “Florida Energy and Climate Protection Act.” Renames the “Renewable Energy Technologies Grants Program,” as the “Renewable Energy and Energy-Efficient Technologies Grants Program,” and adds “innovative technologies that significantly increase energy efficiency for vehicles and commercial buildings” to the list of projects for which the program will provide renewable energy matching grants.

Florida Green Government Grants Act (s. 377.808, F.S.) - Creates the “Florida Green Government Grants Act,” to provide that the newly-created Florida Energy and Climate Commission (FECC) award grants to assist local governments, including municipalities, counties, and school districts, to develop programs that achieve green standards. Authorizes the FECC to provide necessary administrative expenses to local governments from the grants. Requires “green standards” to be determined by the FECC to provide cost-efficient solutions that reduce greenhouse gas emissions, improve the quality of life, and strengthen Florida’s economy.

Florida Climate Protection Act (Cap and Trade Regulatory Program) (s. 403.44, F.S) - Authorizes Department of Environmental Protection (DEP) to adopt rules for a cap-and-trade regulatory program to reduce greenhouse gas emissions by electric utilities. Provides for methodologies,

reporting periods, and reporting systems that must be used when electric utilities report to the Climate Registry. Requires the DEP to consult with the Florida Energy and Climate Commission and the Public Service Commission (PSC) when developing the rules. Requires the Florida Energy and Climate Commission (FECC) to review the draft rule and report to the Legislature on the design, cost, and economic impact factors. Provides that the rule may not become effective until ratified by the Legislature and not until after January 1, 2010.

Electrical Power Plant and Transmission Line Siting Act (ss. 403.502 - 403.5365, F.S.) - Revises various provisions of the Power Plant Siting and Transmission Line Siting Acts to create greater efficiency in the siting process and facilitate the need for expanded power generation. Creates an alternate corridor proposal process within the Power Plant Siting Act that mirrors the same process currently in the Transmission Line Siting Act, and allows electric utilities constructing a nuclear power plant to obtain certain preconstruction site support permits before obtaining the certification.

Recycling (s. 403.7032, F.S.) – Requires a long term goal by state and local governments, private companies and organizations, and the general public to reduce the amount of recyclable solid waste disposed of in waste management facilities, landfills, or incinerator facilities by a statewide average of at least 75 percent. Directs the Department of Environmental Protection (DEP) to develop a recycling program designed to achieve the 75 percent reduction and submit the program to the Legislature by January 1, 2010.

Analysis of Disposable Plastic Bags by DEP (s. 403.7033, F.S.) – Authorizes the DEP to undertake an analysis of the need for regulation of auxiliary containers, wrappings or disposable plastic bags. Requires Department of Environmental Protection (DEP) to report their findings to the Legislature no later than February 1, 2010, and prohibits local or state government entities from enacting any regulation of such auxiliary containers, wrappings, or disposable plastic bags until the Legislature has acted on the DEP’s recommendations.

Methane Capture (s. 403.7055, F.S) - Encourages counties to form multicounty regional solutions to capture methane gas from landfills and wastewater treatment facilities. Requires the Department of Environmental Protection (DEP) to provide planning guidelines and technical assistance to each county to develop these multicounty efforts.

Composting (s. 403.706, F.S.) – Requires each county by July 1, 2010, to develop and implement a plan to achieve a goal of up to 10 percent and no less than 5 percent of organic material to be composted within the boundaries of a county or municipality. Authorizes the Department of Environmental Protection (DEP) to provide exemptions for the plan if the county demonstrates that the achievement of the goal is impractical given the county’s unique demographic, urban density, or inability to separate normally compostable material from the solid waste stream. Encourages each county to consider plans for mulching organic materials otherwise disposed of in a landfill.

Guaranteed Energy Performance Savings Contracts (s. 489.145, F.S.) – Authorizes all state agencies to use the guaranteed energy, water, and wastewater performance savings contracting program to utilize savings from energy, water, and wastewater conservation and efficiency measures to finance such measures.

Florida Renewable Fuel Standard Act (ss. 526.06, ss. 526.201 - 526.207 and 206.43(2)(b), F.S.) - Establishes the Florida Renewable Fuel Standard Act (act). Provides that beginning on December 31, 2010, all gasoline sold or offered for sale in Florida by a terminal supplier, importer, blender, or wholesaler shall be blended gasoline. Defines blended gasoline as a “mixture of 90 to 91 percent gasoline and 9 to 10 percent fuel ethanol, by volume.” The ethanol portion may be derived from any agricultural source. Exempts the following from the standard:

Fuel used in aircraft.
Fuel sold for use in boats and similar watercraft.
Fuel sold to a blender.
Fuel sold for use in collector vehicles or vehicles eligible to be licensed as collector vehicles, off-road vehicles, motorcycles, or small engines.
Fuel unable to comply due to requirements of the United States Environmental Protection Agency.
Fuel transferred between terminals.
Fuel exported from the state in accordance with s. 206.052, F.S.
Fuel qualifying for any exemption in accordance with chapter 206, F.S.
Fuel for a railroad locomotive.
Fuel for equipment, including vehicle or vessel, covered by a warranty that would be voided, if explicitly stated in writing by the vehicle or vessel manufacturer, if it were to be operated using fuel meeting the requirements of the act.
Requires that all records of sale of unblended gasoline include the following statement: “Unblended gasoline may be sold only for the purposes authorized under s. 526.203(3), F.S.”
Requires each terminal supplier, importer, blender, and wholesaler to provide to the Department of Revenue (DOR) the number of gallons of blended and unblended gasoline sold and directs the DOR to provide a monthly summary report of these totals to the Department of Agriculture and Consumer Services (DACS). Provides for a waiver of the standard in situations where a terminal supplier, importer, blender, or wholesaler is unable to obtain fuel ethanol or blended gasoline at the same or lower price as unblended gasoline.
Provides that if a supplier, importer, blender, or wholesaler has made a good faith effort to comply with the requirements but has been unable to do so for reasons beyond the applicant’s control, such as delays in receiving governmental permits, he or she can apply to the DACS for an extension of time to comply with the requirements. Provides for suspensions of the standard requirement in cases of emergency, which are addressed in s. 252.36(2), F.S. Provides for penalties for violations of the act.

Directs the Florida Energy and Climate Commission to conduct a study to evaluate and recommend the lifecycle greenhouse gas emissions associated with all renewable fuels including, but not limited to, biodiesel, renewable diesel, biobutanol, and ethanol derived from any source and evaluate and recommend a requirement that all renewable fuels introduced into commerce in the state, as a result of the Renewable Fuel Standard, reduce the lifecycle greenhouse gas emissions by an average percentage. Provides that the study may also evaluate and recommend any benefits associated with the creation, banking, transfer, and sale of credits. Directs that the study be submitted to the President of the Senate and the Speaker of the House of Representatives no later than December 31, 2010.

Provides for fuel volatility standards for gasoline and gasoline blended with ethanol and provides for a transition period for retail service stations transitioning from unblended gasoline to the new standard.

Florida Building Code (s. 553.73, F.S.) - Directs the Florida Building Commission to select the most recent International Energy Conservation Code as a foundation code. Provides for modification of the code by the commission to achieve the efficiency levels of the Florida Energy Efficiency Code for Building Construction.

Thermal Efficiency Standards (s. 553.9061, F.S.) - Provides for targeted increases in the energy efficiency standards in the Florida Building Code totaling 50 percent by the year 2019. Prior to implementing the increases, requires the Florida Building Commission to adopt by rule and implement a cost-effectiveness test to ensure increases in efficiency result in a positive net financial impact.

Appliances and Pool Pumps (s. 553.909, F.S.) – Sets minimum requirements for commercial or residential swimming pool pumps, swimming pool water heaters, and water heaters used to heat potable water. Requires commercial or residential swimming pool pumps or water heaters sold after July 1, 2011, comply with requirements for appliances set by the Florida Energy Efficiency Code for Building Construction. Sets requirements for residential pool pump motors and portable electric spas.

Agency for Enterprise Information Technology (Section 111) – Requires the Agency for Enterprise Information Technology to define specified objective standards and conduct evaluations relating to energy efficiency. Requires the agency to submit recommendations to the Legislature for reducing energy consumption and improving the energy efficiency of state data centers by December 31, 2010, and bi-annually thereafter. Requires that when the total cost of ownership of an energy efficient product is less than or equal to the existing data center

facility or infrastructure, technical specifications for energy efficient products be incorporated in the plans and processes for replacing, upgrading, or expanding data center facilities or infrastructure.

Florida Energy Systems Consortium (s. 1004.648, F.S.) – Establishes the Florida Energy Systems Consortium (consortium), consisting of all eleven state universities. The consortium is designed to promote collaboration between experts in the State University System for the purposes of sharing energy-related expertise and assisting in the development and implementation of a “comprehensive, long-term, environmentally compatible, sustainable, and efficient energy strategic plan for the state.”

Provides for the consortium to be administered at the University of Florida (UF). Provides that the director be selected by the President of UF and that the director’s office be located at the UF. Requires the director to report to the Florida Energy and Climate Commission.
Creates an Oversight Board, consisting of the Vice President for Research, or other appropriate representative, at each of the universities, which will have ultimate responsibility for both the technical performance and financial management of the consortium. Specifies that the consortium is responsible for soliciting and leveraging state, federal, and private funds for the purpose of conducting education and research and development in the area of sustainable energy.
Creates a Steering Committee, consisting of representatives of the University of Florida, Florida State University, the University of South Florida, the University of Central Florida, the Florida Atlantic University, the Florida International University, and the Florida Energy and Climate Commission, to establish and assure the success of the consortium’s strategic plan.

Woody Biomass Economic Study (Section 113) - Directs the Department of Agriculture and Consumer Services, in conjunction with the Department of Environmental Protection, to conduct an economic impact study on the effects of granting financial incentives to energy producers who use woody biomass as fuel. Requires study to include an analysis of effects on wood supply and prices, impacts on current markets, and on forest sustainability. Requires results of the study to be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives no later than March 1, 2010.

Decoupling (Section 114) - Directs the Public Service Commission (PSC) to analyze utility revenue decoupling and provide a report and recommendations to the Governor, the President of the Senate, and the Speaker of the House of Representatives by January 1, 2009.

Motor Vehicle Emissions Standards (Section 115) - Prohibits DEP from adopting and implementing the California motor vehicle emissions standards until ratified by the Legislature and prohibits DEP from modifying its rules to implement such standards until ratified by the Legislature.

Recognition Program for Green Schools (Section 116) – Requires the Department of Education and the Department of Environmental Protection (DEP) to develop a program to provide awards or recognition for outstanding efforts in conservation, energy and water use reduction, environmental enhancement, and conservation-related educational curriculum development; authorizes students, classes, teachers, schools, or district school boards to be eligible for such awards or recognition; encourages the departments to seek private sector funding for the program.