CS/HB 821 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0821-01-c1
Page 1 of 5
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
A bill to be entitled 1
An act relating to renewable energy cost recovery; 2
amending s. 366.91, F.S.; revising the types of 3
contracts which are eligible for cost recovery by a 4
public utility under certain circumstances; 5
authorizing a public utility to recover prudently 6
incurred renewable natural gas and hydrogen fuel 7
infrastructure project costs approved by the Public 8
Service Commission; establishing terms for cost 9
recovery; specifying eligible renewable natural gas 10
and hydrogen fuel infrastructure projects; requiring 11
an annual report; providing for repeal on June 30, 12
2028, unless reviewed and saved from repeal by the 13
Legislature; providing an effective date. 14
15
Be It Enacted by the L egislature of the State of Florida: 16
17
Section 1. Subsection (9) of section 366.91, Florida 18
Statutes, is amended, and subsection (10) is added to that 19
section, to read: 20
366.91 Renewable energy. — 21
(9) A The commission may approve cost recovery by a gas 22
public utility contract for contracts for the purchase of 23
renewable natural gas or hydrogen fuel in which the pricing 24
provisions exceed the current market price of natural gas is 25
CS/HB 821 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0821-01-c1
Page 2 of 5
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
eligible for cost recovery , but only if which are otherwise 26
deemed reasonable and prudent by the commission finds that the 27
contract provides net benefits to the public utility and its 28
customers and is therefore in the public interest. In making 29
this determination, the commission may consider the contract's 30
impact on the overall di versity of the public utility's natural 31
gas commodity supply or other fuel supply, the potential to 32
reduce the impact of volatility in the natural gas commodity 33
market upon the public utility and its customers, any 34
reliability benefits associated with the in-state production of 35
these fuel supplies, and the public utility's cost of fuel . 36
(10)(a) A public utility may petition the commission for 37
approval to recover costs prudently incurred for a renewable 38
natural gas or hydrogen fuel infrastructure project a t a 39
location in this state for use in providing utility service 40
within this state. 41
(b) In its review of a petition filed pursuant to this 42
subsection, the commission shall consider: 43
1. The estimated volume and reliability of renewable 44
natural gas or hydrogen fuel that the project will produce for 45
use by the public utility, and the comparative cost of the same 46
volume of natural gas purchases; 47
2. The estimated rate impact of the project over time, 48
including estimated savings, if any, to the public utili ty and 49
its customers; 50
CS/HB 821 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0821-01-c1
Page 3 of 5
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
3. The service and reliability benefits to be derived from 51
the project; 52
4. The proposed mechanism for recovery of project costs; 53
5. The impact of the project on fuel diversity in this 54
state and fuel cost volatility; and 55
6. Any other matter deemed relevant by the commission. 56
(c)1. Upon consideration of all matters specified in 57
paragraph (b), the commission shall determine whether, and the 58
extent to which, approval for recovery of project costs from the 59
public utility's ratepa yers provides net benefits to this state 60
and is therefore in the public interest. 61
2. If the commission approves recovery of project costs, 62
in whole or in part, the commission shall determine the 63
appropriate mechanism for recovery of such costs. Appropria te 64
mechanisms may include an existing cost recovery mechanism, not 65
excluding base rates, or a new cost recovery mechanism 66
established by the commission. 67
3. Costs approved by the commission are not subject to 68
disallowance or further prudence review except for fraud, 69
perjury, or intentional withholding of material information by 70
the public utility. 71
(d) Costs of renewable natural gas and hydrogen fuel 72
infrastructure projects that are eligible for recovery under 73
this subsection include: 74
1. Capital investment in projects necessary to prepare or 75
CS/HB 821 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0821-01-c1
Page 4 of 5
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
produce renewable natural gas or hydrogen fuel for pipeline 76
distribution and usage; 77
2. Capital investment in facilities, including pipelines, 78
necessary to inject into pipelines, and deliver for utility use, 79
renewable natural gas or hydrogen fuel throughout this state; 80
3. Renewable natural gas and hydrogen fuel storage 81
facilities; 82
4. Operation and maintenance expenses associated with such 83
renewable natural gas and hydrogen fuel infrastructure projects; 84
and 85
5. An appropriate return on investment consistent with the 86
utility's authorized return on investment for other utility 87
plants used to provide service to customers. 88
(e) Recovery of costs incurred by a public utility for a 89
renewable natural gas or hydrogen fue l infrastructure project 90
approved for cost recovery under this section may not be allowed 91
until such facility is placed in service. Upon approval of cost 92
recovery by the commission, costs incurred before the facility 93
is placed in service may be deferred on the public utility's 94
books for recovery once the facility is in service. This does 95
not preclude application of any other appropriate regulatory 96
accounting rules that are otherwise deemed appropriate, 97
including, but not limited to, normal recovery of costs for 98
construction work in progress. 99
(f) Beginning January 1, 2025, the commission must 100
CS/HB 821 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0821-01-c1
Page 5 of 5
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
annually submit a report to the Governor, the President of the 101
Senate, and the Speaker of the House of Representatives 102
indicating, for the 12 -month reporting period an d cumulatively, 103
the investment made in such infrastructure projects; the 104
eligible costs incurred and the amount of such costs recovered; 105
the volume of renewable natural gas or hydrogen fuel used to 106
provide utility service; and an analysis of the price of 107
renewable natural gas or hydrogen fuel used to provide utility 108
service as compared to the market cost of gas, including actual 109
rate impacts of such projects. 110
(g) This subsection is repealed on June 30, 2028, unless 111
reviewed and saved from repeal by the Le gislature. A public 112
utility may continue to recover eligible costs of renewable 113
natural gas or hydrogen fuel infrastructure projects approved 114
before June 30, 2028, under this subsection as being in the 115
public interest. 116
(h) The commission may adopt rules to implement and 117
administer this section. 118
Section 2. This act shall take effect July 1, 2023. 119