Florida Senate - 2020 SB 446 By Senator Brandes 24-00471-20 2020446__ Page 1 of 4 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to renewable energy; amending s. 2 366.91, F.S.; defining the term “renewable energy 3 source device”; authorizing owners of commercial or 4 industrial businesses, or third parties contracted by 5 such owners, to install, maintain, and operate a 6 renewable energy source device on or about the 7 structure in which the business operates or on a 8 property the business owns or leases; authorizing 9 owners or contracted third parties to sell electricity 10 generated from the device to certain businesses 11 regardless of whether the device is located in a 12 utility’s service territory; providing applicability; 13 authorizing utilities to recover the full cost of 14 providing services to an energy-producing business or 15 its customers, under certain circumstances; 16 authorizing utilities to install, maintain, and 17 operate certain renewable energy source devices; 18 exempting from regulation the sale of electricity 19 produced by such devices; authorizing utilities to 20 recover certain costs under certain circumstances; 21 authorizing customers to challenge such cost recovery 22 and receive refunds following a successful challenge; 23 clarifying applicability and the eligibility 24 requirements of certain energy rebate or incentive 25 programs established by law; authorizing the Florida 26 Public Service Commission to adopt rules; providing an 27 effective date. 28 29 Florida Senate - 2020 SB 446 24-00471-20 2020446__ Page 2 of 4 CODING: Words stricken are deletions; words underlined are additions.

Be It Enacted by the Legislature of the State of Florida: 30 31

Section 1. Paragraph (

e) is added to subsection (2) of 32

section 366.91, Florida Statutes, and subsection (9) is added to 33 that section, to read: 34 366.91 Renewable energy.— 35

(2) As used in this section, the term: 36 (e) “Renewable energy source device” has the same meaning 37 as in s. 193.624(1). 38 (9)(

a) An owner of a commercial or industrial business or a 39 contracted third party may install, maintain, and operate a 40 renewable energy source device on or about the structure in 41 which the business operates or on any property the business owns 42 or leases.

The owner of the business or the contracted third 43 party may sell the electricity generated from the device, 44 regardless of whether the device is located in a utility’s 45 service territory, to a commercial or industrial business that 46 is located immediately adjacent to the structure, within the 47 same parcel as the structure, or on an immediately adjacent 48 parcel. Such sales are not retail sales of electricity for 49 purposes of this

chapter and do not subject the energy-producing 50 business to regulation under this chapter. 51 (

b) A business entity is not required to purchase directly 52 or indirectly, by lease or by other contractual arrangement, the 53 electricity produced pursuant to paragraph (a). 54 (

c) If the energy-producing business or its customers 55 require additional related services from a utility, such as 56 backup generation capacity or transmission services, the utility 57 may recover the full cost of providing these services. 58 Florida Senate - 2020 SB 446 24-00471-20 2020446__ Page 3 of 4 CODING: Words stricken are deletions; words underlined are additions. (

d) A utility may enter into a contract with a commercial 59 or industrial business to install, maintain, and operate any 60 type of renewable energy source device on or about the structure 61 in which the business operates and to sell the electricity 62 generated from the device to that business or to a commercial or 63 industrial business located immediately adjacent to the 64 structure, within the same parcel as the structure, or on an 65 immediately adjacent parcel. Such sales are not retail sales for 66 purposes of this

chapter and are not subject to regulation under 67 this chapter. 68 (

e) If the commission determines that the level of 69 reduction in electricity purchases by customers using renewable 70 energy source devices under this

section is significant enough 71 to adversely impact the rates other customers pay in the rate 72 territory, the commission may approve a utility’s request to 73 recover its costs of providing capacity, generation, and 74 distribution of the electricity needed by all customers, 75 including customers using a renewable energy source device. The 76 cost recovered must be an appropriate amount of fixed costs to 77 avoid the adverse impact and may be assessed only to customers 78 engaged in activity under this section.

The cost-recovery 79 elements that are intended for recovery of the fixed costs of 80 capacity, generation, and distribution of electricity must be 81 based on actual costs or on projected costs, must be approved by 82 the commission by a super majority of the voting members of the 83 commission, and are subject to adjustment. A customer may 84 challenge the cost recovery established pursuant to this 85 paragraph by filing with the commission a petition for a 86 determination of whether the costs recovered are excessive.

Upon 87 Florida Senate - 2020 SB 446 24-00471-20 2020446__ Page 4 of 4 CODING: Words stricken are deletions; words underlined are additions. a determination by the commission of any excessive cost 88 recovery, the customer must be refunded any excess funds 89 collected by the utility. 90 (

f) For the purpose of any renewable energy rebate or 91 incentive program established by law, and for application 92 exclusively in this section, the rebate or incentive is the sole 93 property of the owner of the renewable energy source device, and 94 the customer of any electricity sale pursuant to this

section is 95 not eligible to receive the rebate or incentive unless the 96 customer owns the renewable energy source device. 97 (

g) The commission may adopt rules to provide guidance, 98 requirements, and procedures to ensure that each utility 99 continues to recover costs, including the costs of providing 100 redundant capacity. 101

Section 2. This act shall take effect July 1, 2020. 102