FL
Florida House Bill H0821

Florida 2023 Regular Session

Florida House Bill H0821 Compare Versions

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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to renewable energy cost recovery; 2
1616 amending s. 366.91, F.S.; revising the types of 3
1717 contracts which are eligible for cost recovery by a 4
1818 public utility under certain circumstances; 5
1919 authorizing a public utility to recover prudently 6
2020 incurred renewable natural gas and hydrogen fuel 7
21-infrastructure project costs approved by the Public 8
22-Service Commission; establishing terms for cost 9
23-recovery; specifying eligible renewable natural gas 10
24-and hydrogen fuel infrastructure projects; requiring 11
25-an annual report; providing for repeal on June 30, 12
26-2028, unless reviewed and saved from repeal by the 13
27-Legislature; providing an effective date. 14
21+infrastructure project costs through the appropriate 8
22+Public Service Commission cost -recovery mechanism; 9
23+providing that such costs prudently incurred are not 10
24+subject to further actions except under certain 11
25+circumstances; specifying eligible renewable natural 12
26+gas and hydrogen fuel infrastructure projects; 13
27+providing an effective date. 14
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2929 Be It Enacted by the Legislatu re of the State of Florida: 16
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3131 Section 1. Subsection (9) of section 366.91, Florida 18
3232 Statutes, is amended, and subsection (10) is added to that 19
3333 section, to read: 20
3434 366.91 Renewable energy. — 21
35- (9) A The commission may approve cost recovery by a gas 22
36-public utility contract for contracts for the purchase of 23
37-renewable natural gas or hydrogen fuel in which the pricing 24
38-provisions exceed the current market price of natural gas is 25
35+ (9) The commission may approve cost recovery by a gas 22
36+public utility for Contracts for the purchase of renewable 23
37+natural gas and hydrogen in which the pricing provisions exceed 24
38+the current market price of natural gas are eligible for cost 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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51-eligible for cost recovery , but only if which are otherwise 26
52-deemed reasonable and prudent by the commission finds that the 27
53-contract provides net benefits to the public utility and its 28
54-customers and is therefore in the public interest. In making 29
55-this determination, the commission may consider the contract's 30
56-impact on the overall di versity of the public utility's natural 31
57-gas commodity supply or other fuel supply, the potential to 32
58-reduce the impact of volatility in the natural gas commodity 33
59-market upon the public utility and its customers, any 34
60-reliability benefits associated with the in-state production of 35
61-these fuel supplies, and the public utility's cost of fuel . 36
62- (10)(a) A public utility may petition the commission for 37
63-approval to recover costs prudently incurred for a renewable 38
64-natural gas or hydrogen fuel infrastructure project a t a 39
65-location in this state for use in providing utility service 40
66-within this state. 41
67- (b) In its review of a petition filed pursuant to this 42
68-subsection, the commission shall consider: 43
69- 1. The estimated volume and reliability of renewable 44
70-natural gas or hydrogen fuel that the project will produce for 45
71-use by the public utility, and the comparative cost of the same 46
72-volume of natural gas purchases; 47
73- 2. The estimated rate impact of the project over time, 48
74-including estimated savings, if any, to the public utili ty and 49
75-its customers; 50
51+recovery, but only if which are otherwise deemed reasonable and 26
52+prudent by the commission finds that the contract meets the 27
53+overall goals of subsection (1) by promoting the development or 28
54+use of renewable energy resources in this state and providing 29
55+fuel diversification . 30
56+ (10) A public utility may recover, through the appropriate 31
57+cost-recovery mechanism administered by the commission, 32
58+prudently incurred costs for renewable natural gas and hydrogen 33
59+fuel infrastructure projects. If the commission determines that 34
60+such costs were prudently incurred, those costs are not subject 35
61+to disallowance or further prudence review except for fraud, 36
62+perjury, or intentional withholding of key information by the 37
63+public utility. For purposes of this subsection for utility cost 38
64+recovery only, renewable natural gas may include a mixture of 39
65+natural gas and renewable natural gas. Eligible renewable 40
66+natural gas and hydrogen fuel infrastructure projects include, 41
67+but are not limited to, capital investment in projects necessary 42
68+to prepare or produce renewable natural gas and hydrogen fuel 43
69+for pipeline distribution and usage; capital investment in 44
70+facilities, including pipelines, necessary to inject and deliver 45
71+renewable natural gas and hydrogen fuel throughout this state; 46
72+renewable natural gas and hydrogen fuel storage facilities; 47
73+operation and maintenance expenses associated with any such 48
74+renewable natural gas and hydrogen fuel infrastructure projects; 49
75+and an appropriate return on investment consistent with that 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88- 3. The service and reliability benefits to be derived from 51
89-the project; 52
90- 4. The proposed mechanism for recovery of project costs; 53
91- 5. The impact of the project on fuel diversity in this 54
92-state and fuel cost volatility; and 55
93- 6. Any other matter deemed relevant by the commission. 56
94- (c)1. Upon consideration of all matters specified in 57
95-paragraph (b), the commission shall determine whether, and the 58
96-extent to which, approval for recovery of project costs from the 59
97-public utility's ratepa yers provides net benefits to this state 60
98-and is therefore in the public interest. 61
99- 2. If the commission approves recovery of project costs, 62
100-in whole or in part, the commission shall determine the 63
101-appropriate mechanism for recovery of such costs. Appropria te 64
102-mechanisms may include an existing cost recovery mechanism, not 65
103-excluding base rates, or a new cost recovery mechanism 66
104-established by the commission. 67
105- 3. Costs approved by the commission are not subject to 68
106-disallowance or further prudence review except for fraud, 69
107-perjury, or intentional withholding of material information by 70
108-the public utility. 71
109- (d) Costs of renewable natural gas and hydrogen fuel 72
110-infrastructure projects that are eligible for recovery under 73
111-this subsection include: 74
112- 1. Capital investment in projects necessary to prepare or 75
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121-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125-produce renewable natural gas or hydrogen fuel for pipeline 76
126-distribution and usage; 77
127- 2. Capital investment in facilities, including pipelines, 78
128-necessary to inject into pipelines, and deliver for utility use, 79
129-renewable natural gas or hydrogen fuel throughout this state; 80
130- 3. Renewable natural gas and hydrogen fuel storage 81
131-facilities; 82
132- 4. Operation and maintenance expenses associated with such 83
133-renewable natural gas and hydrogen fuel infrastructure projects; 84
134-and 85
135- 5. An appropriate return on investment consistent with the 86
136-utility's authorized return on investment for other utility 87
137-plants used to provide service to customers. 88
138- (e) Recovery of costs incurred by a public utility for a 89
139-renewable natural gas or hydrogen fue l infrastructure project 90
140-approved for cost recovery under this section may not be allowed 91
141-until such facility is placed in service. Upon approval of cost 92
142-recovery by the commission, costs incurred before the facility 93
143-is placed in service may be deferred on the public utility's 94
144-books for recovery once the facility is in service. This does 95
145-not preclude application of any other appropriate regulatory 96
146-accounting rules that are otherwise deemed appropriate, 97
147-including, but not limited to, normal recovery of costs for 98
148-construction work in progress. 99
149- (f) Beginning January 1, 2025, the commission must 100
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158-F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162-annually submit a report to the Governor, the President of the 101
163-Senate, and the Speaker of the House of Representatives 102
164-indicating, for the 12 -month reporting period an d cumulatively, 103
165-the investment made in such infrastructure projects; the 104
166-eligible costs incurred and the amount of such costs recovered; 105
167-the volume of renewable natural gas or hydrogen fuel used to 106
168-provide utility service; and an analysis of the price of 107
169-renewable natural gas or hydrogen fuel used to provide utility 108
170-service as compared to the market cost of gas, including actual 109
171-rate impacts of such projects. 110
172- (g) This subsection is repealed on June 30, 2028, unless 111
173-reviewed and saved from repeal by the Le gislature. A public 112
174-utility may continue to recover eligible costs of renewable 113
175-natural gas or hydrogen fuel infrastructure projects approved 114
176-before June 30, 2028, under this subsection as being in the 115
177-public interest. 116
178- (h) The commission may adopt rules to implement and 117
179-administer this section. 118
180- Section 2. This act shall take effect July 1, 2023. 119
88+allowed for other utility plants used to provide service to 51
89+customers. 52
90+ Section 2. This act shall tak e effect July 1, 2023. 53