HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 1 of 7 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 the Municipal Solid Waste -to-Energy 2 Program; amending s. 377.814, F.S.; revising the state 3 agency responsible for administering the Municipal 4 Solid Waste-to-Energy Program; revising the 5 requirements necessary for municipal solid waste -to-6 energy facilities to be eligible to receive financial 7 assistance grant funding; revising the requirements 8 necessary for certain municipal solid waste -to-energy 9 facilities to be eligible to receive such funding; 10 providing an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Section 377.814, Florida Statutes, is amended 15 to read: 16 377.814 Municipal Solid Waste -to-Energy Program.— 17 (1) CREATION AND PURPOSE OF THE PROGRAM. —The Municipal 18 Solid Waste-to-Energy Program is created within the department. 19 The purpose of the program is to provide financial assistance 20 grants and incentive grants to municipal solid waste -to-energy 21 facilities to incentivize the production and sale of energy from 22 municipal solid waste -to-energy facilities while also reducing 23 the amount of waste that would otherwise be disposed of in a 24 landfill. 25 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 2 of 7 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 (2) DEFINITIONS.—For purposes of this section, the term : 26 (a) "Department" means the Department of Environmental 27 Protection Agriculture and Consumer Services . 28 (b) "Municipal solid waste -to-energy facility" means a 29 publicly owned facility that uses an enclosed device using 30 controlled combustion to thermally break down solid waste to an 31 ash residue that contains little or no combustible material and 32 that produces electricity, steam, or other energy as a result. 33 The term does not include facilities that primarily burn fuels 34 other than solid waste even if such f acilities also burn some 35 solid waste as a fuel supplement. The term also does not include 36 facilities that primarily burn vegetative, agricultural, or 37 silvicultural wastes, bagasse, clean dry wood, methane or other 38 landfill gas, wood fuel derived from const ruction or demolition 39 debris, or waste tires, alone or in combination with fossil 40 fuels. 41 (3) FINANCIAL ASSISTANCE GRANT PROGRAM. —The department, 42 subject to appropriation, shall provide annual financial 43 assistance grants to municipal solid waste -to-energy facilities 44 that entered into a power purchase agreement with an electric 45 utility before January 1, 2022, which included capacity and 46 energy payments, and the owner of the municipal solid waste -to-47 energy facility has entered into a new or amended power pur chase 48 agreement that either no longer includes capacity payments or 49 includes capacity and energy payments in an amount less than the 50 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 3 of 7 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 total of the capacity and energy payments the municipal solid 51 waste-to-energy facility received under the power purchase 52 agreement entered into before January 1, 2022. 53 (a) To apply for an annual financial assistance grant, the 54 owner of a municipal solid waste -to-energy facility must submit 55 an application to the department. The application must include 56 the name of the applic ant's municipal solid waste -to-energy 57 facility, the name of the utility purchasing the electric power 58 from the municipal solid waste -to-energy facility, the total 59 capacity and energy payment the municipal solid waste -to-energy 60 facility received during the last year of the power purchase 61 agreement entered into before January 1, 2022, and the amount of 62 energy delivered to and the total amount paid for such power by 63 an electric utility pursuant to a new or amended power purchase 64 agreement during the preceding state fiscal year. 65 (b) Beginning July 1, 2024, before a municipal solid 66 waste-to-energy facility may receive financial assistance grant 67 funding, the Office of Air Monitoring must measure the air 68 quality and particulate matter in all environmental justice 69 zones located within 25 miles of the facility. An applicant is 70 not eligible for grant funding under this program if the results 71 of the measurements do not meet the minimum standards for air 72 quality and particulate matter set by the United States 73 Environmental Protection Agency. After the department has 74 determined the applicants whose facilities meet the minimum air 75 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 4 of 7 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 quality and particulate matter standards, it the department 76 shall distribute funds, subject to appropriation, to each 77 qualifying applicant at a rate of 2 cents per kilowatt -hour of 78 electric power purchased by an electric utility during the 79 preceding state fiscal year, not to exceed the difference 80 between the total capacity and energy payment the municipal 81 solid waste-to-energy facility received d uring the last year of 82 the power purchase agreement entered into before January 1, 83 2022, and the total of the capacity and energy payment the 84 municipal solid waste -to-energy facility received under a new or 85 amended power purchase agreement during the prece ding state 86 fiscal year. To the extent that funds are not available to 87 provide financial assistance to each qualifying applicant for 88 every qualifying kilowatt -hour purchased, the department shall 89 prorate the funds on an equitable basis. 90 (c) The department shall establish a process to verify the 91 amount of electric power purchased from a municipal solid waste -92 to-energy facility by an electric utility during each preceding 93 state fiscal year. The Public Service Commission shall provide 94 assistance to the depart ment to help verify the information 95 provided pursuant to paragraph (a). 96 (4) INCENTIVE GRANT PROGRAM. —The department, subject to 97 appropriation, shall provide incentive grants to municipal solid 98 waste-to-energy facilities to assist with the planning and 99 designing for constructing, upgrading, or expanding a municipal 100 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 5 of 7 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 solid waste-to-energy facility, including necessary legal or 101 administrative expenses. Beginning July 1, 2024, the department 102 may not provide grant funding for a solid waste -to-energy 103 facility until an environmental justice evaluation of impacted 104 low-income and historically marginalized residential areas has 105 determined that the new facility will have a negligible impact 106 on these communities and will not decrease the air quality or 107 increase the particulate matter to a point that exceeds the 108 minimum standards set by the United States Environmental 109 Protection Agency. 110 (a) To qualify for an incentive grant, the owner of a 111 municipal solid waste -to-energy facility must apply to the 112 department for fundin g; provide matching funds on a dollar -for-113 dollar basis; and demonstrate that the project is cost -114 effective, permittable, and implementable and complies with s. 115 403.7061. 116 (b) The Department of Agriculture and Consumer Services 117 Department of Environmental Protection shall provide assistance 118 to the department in determining the eligibility of grant 119 applications and establishing requirements to ensure the long -120 term and efficient operation and maintenance of facilities 121 constructed or expanded under an incentiv e grant. 122 (c) The department shall perform adequate overview of each 123 grant application and grant award, including technical review, 124 regular inspections, disbursement approvals, and auditing, to 125 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 6 of 7 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 implement this section. 126 (d) Funds awarded under the incentive grant program may 127 not be used to promote, establish, or convert a residential 128 collection system that does not provide for the separate 129 collection of residential solid waste from recovered materials 130 as defined in s. 403.703. 131 (e) The department shall require the termination or 132 repayment of incentive grant funds if the department determines 133 that program requirements are not being met. 134 (5) FUNDING.— 135 (a) Funds appropriated for the Municipal Solid Waste -to-136 Energy Program must first be used for financial assistance 137 grants. Any funds remaining in a state fiscal year after 138 disbursement to all qualifying applicants may be used to fund 139 the incentive grant program. 140 (b) Funds awarded under the grant programs set forth in 141 this section may not be used to support, subsidize, or enable 142 the sale of electric power generated by a municipal solid waste -143 to-energy facility to any small electric utility eligible to 144 petition the commission under s. 366.06(4). 145 (c) Notwithstanding s. 216 .301 and pursuant to s. 216.351, 146 funds allocated for the purpose of this section which are not 147 disbursed by June 30 of the fiscal year in which the funds are 148 allocated may be carried forward for up to 5 years after the 149 effective date of the original approp riation. 150 HB 1631 2024 CODING: Words stricken are deletions; words underlined are additions. hb1631-00 Page 7 of 7 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 (6) RULES.—The department shall adopt rules to implement 151 and administer this section, including establishing grant 152 application processes for financial assistance grants and 153 incentive grants. The rules shall include application deadlines 154 and establish the supporting documentation necessary to be 155 provided to the department. In adopting rules relating to the 156 financial assistance grant program, the department shall consult 157 the Public Service Commission. In adopting rules for the 158 incentive grant progr am, the department shall consult the 159 Department of Agriculture and Consumer Services Department of 160 Environmental Protection . 161 Section 2. This act shall take effect July 1, 2024. 162