This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. STORAGE NAME: h1645.ECC DATE: 1/27/2024 HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: HB 1645 Energy Resources SPONSOR(S): Payne TIED BILLS: IDEN./SIM. BILLS: SB 1624 REFERENCE ACTION ANALYST STAFF DIRECTOR or BUDGET/POLICY CHIEF 1) Energy, Communications & Cybersecurity Subcommittee Bauldree Keating 2) Appropriations Committee 3) Commerce Committee SUMMARY ANALYSIS The bill updates Florida’s energy policies and amends specific energy-related laws. Specifically, the bill: Provides an updated statement of legislative intent concerning the state’s energy policy, establishes a list of specific, fundamental policy goals to guide the state’s energy policy. Updates energy policy statements in current law and the duties of the Department of Agriculture and Consumer Services (DACS) to be consistent with the energy policy goals established in the bill. Requires public utilities to obtain approval from the Public Service Commission (PSC) to retire certain electrical power plants, and requires the PSC to inform and provide technical support to the Attorney General if a plant retirement is required or induced by federal regulation and is inconsistent with the state’s energy policy goals. Requires the PSC to develop certain smart grid policies which must be submitted for consideration by, and may not be implemented until approved by, the Legislature. Increases the minimum length of an intrastate natural gas pipeline that requires certification under the Natural Gas Transmission Pipeline Siting Act from 15 miles to 100 miles. Provides that certain “resiliency facilities” owned and operated by a public utility to deploy natural gas reserves for temporary use during a system outage or natural disaster are a permitted use in all commercial, industrial, and manufacturing land use categories and districts, subject to setback and landscape criteria for other similar uses. Requires the PSC to conduct an assessment of the security and resiliency of the state's electric grid and natural gas facilities against both physical threats and cyber threats and to submit a report. Prohibits the PSC, without specific legislative authority, from authorizing a public utility to make direct sales of energy to a consumer solely for the consumer's use in powering a means of transportation. Authorizes the PSC to approve a utility program for residential, customer-specific electric vehicle (EV) charging if the program will not adversely impact the utility's general body of ratepayers. Eliminates specified requirements for public business related to the purchase of certain products and services. Requires the Department of Management Services (DMS) to develop the Florida Humane Preferred Energy Products List to identify certain products that appear to be largely made free from forced labor. Repeals the Renewable Energy and Energy-Efficient Technologies Grant Program, Florida Green Government Grants, the Energy Economic Zone Pilot Program, and Qualified Energy Conservation Bonds provisions. Requires the Department of Transportation to offer potential access to vendors of certain alternative motor vehicle fuels and repowering stations along the turnpike system. Prohibits community development districts and homeowners’ associations from prohibiting certain types or fuel sources of energy production and appliances that use such fuels. Creates an EV Battery Deposit Program within the Department of Highway Safety and Motor Vehicles (DHSMV). Requires the PSC to study and evaluate the technical and economic feasibility of using advanced nuclear power technologies and to submit a report of its findings and recommendations. Requires DOT to study and evaluate the potential development of hydrogen fueling infrastructure, including fueling stations, to support hydrogen-powered vehicles that use the state highway system. The bill does not appear to impact state or local government revenues or local government expenditures. The bill appears to have a negative impact on state government expenditures, which may be offset to some degree by potential savings related to the elimination of specified purchasing requirements. See Fiscal Analysis & Economic Impact Statement. The bill provides an effective date of July 1, 2024, except as otherwise provided in the bill. STORAGE NAME: h1645.ECC PAGE: 2 DATE: 1/27/2024 FULL ANALYSIS I. SUBSTANTIVE ANALYSIS A. EFFECT OF PROPOSED CHANGES: Florida Energy Profile Florida is the third most populous state and the fourth largest energy-consuming state in the nation. However, Florida uses less energy per capita than all but six other states, in part because of its large population, moderate winter weather, and relatively low industrial sector energy use. 1 Florida’s energy consumption can be broken down by end-use sector as follows: 2 Transportation – 39% Residential – 28% Commercial – 22% Industrial – 11% In the electric power industry, natural gas is the dominant fuel in Florida and since 2011 has generated more electric power than all other fuels combined. Natural gas fueled approximately 70 percent of electric energy consumed in Florida in 2022. This number is anticipated to decline over the next ten years, reaching 56 percent by 2032. 3 Florida has very little natural gas production and limited gas storage capacity, thus the state is reliant upon out-of-state production and storage to satisfy its demand. 4 Supply from out-of-state is provided by five interstate natural gas pipelines, with the majority of peninsular Florida’s supply provided by three interstate pipelines: Florida Gas Transmission Pipeline, Gulf Stream Natural Gas System, and Sabal Trail Transmission. 5 In 2022, renewable energy resources were used to generate approximately 14 percent of the electric energy consumed in Florida. This number is anticipated to increase over the next ten years, reaching 28 percent by 2032, primarily from the addition of new solar generation. Solar generation in Florida is expected to exceed all non-natural gas energy sources combined (primarily nuclear and coal) by 2029. 6 Of the current renewable generation capacity in Florida, approximately 37 percent is considered a “firm” resource than can be relied upon to serve customers and defer the need for traditional power plants. Because of the coincidence of solar generation and the peak demand for electrical energy, about 40 percent of installed solar generation is considered a firm resource. For utility-scale solar projects, that number increases to 52 percent. As the amount of solar increases in the state, the difference in how it operates compared to traditional generation will have an increasing importance to the grid. Solar generation cannot be dispatched as needed, but is produced based upon the conditions at the plant site, influenced by variations in daylight hours, cloud cover, and other environmental factors. Generally, the peak hours for production of a solar facility are closer to noon, whereas the peak in system demand tends to be in the early evening in summer and early morning in winter. Still, Florida is projected to meet its electricity demand and carry a reserve margin of between 16.4 and 30.1 percent on a statewide basis over the next 10 years. 7 1 U.S. Energy Information Administration (EIA), Florida, State Profile and Energy Estimates, Analysis, https://www.eia.gov/state/analysis.php?sid=FL#:~:text=Renewable%20resources%20fueled%20about%206,generation% 20came%20from%20solar%20energy (last visited Jan. 12, 2024). 2 EIA, Florida, State Profile and Energy Estimates, Data, https://www.eia.gov/state/data.php?sid=FL (last visited Jan. 12, 2024). These figures reflect consumption in 2021, the most recent period reported by EIA for the state. 3 Florida Public Service Commission (FPSC), Review of the 2023 Ten-Year Site Plans of Florida’s Electric Utilities, available at https://www.floridapsc.com/pscfiles/website-files/PDF/Utilities/Electricgas/TenYearSitePlans//2023/Review.pdf (last visited Jan. 12, 2024). 4 Id. at 42. 5 FPSC, Facts and Figures of the Florida Utility Industry, 2023, at 17, https://www.floridapsc.com/pscfiles/website- files/PDF/Publications/Reports/General/FactsAndFigures/April%202023.pdf (last visited Jan. 15, 2024). 6 FPSC, supra note 3. 7 Id. STORAGE NAME: h1645.ECC PAGE: 3 DATE: 1/27/2024 Since 2001, utility-scale electric generation from renewable resources in Florida had grown only 28 percent through 2016, but had grown over 300 percent by 2022. 8 Customer-owned renewable generation connected to the electric grid in Florida has also grown dramatically in recent years, increasing 460 percent from 2018 to 2022. This growth appears to correlate with decreasing prices for both utility-scale and customer-owned solar generation systems. 9 In the transportation sector, the market for electric vehicles (EV) in Florida has grown significantly in recent years and is expected to continue growing. 10 Including both full battery electric vehicles and plug-in hybrid electric vehicles, only 21,700 EVs were registered in Florida in 2016; that number increased to 213,800 in 2022, second only to California. 11 Florida’s generating electric utilities anticipate that annual EV energy consumption in their service territories will increase at a rate of almost 20% per year through 2032 and will comprise 3.9 percent of their net energy for load and 4 percent of summer peak demand in 2032. 12 This growth is accounted for in utility planning. 13 Registrations for compressed natural gas vehicles in Florida have declined from 18,000 in 2016 to 400 in 2022, and there is no data for registration of hydrogen-fueled vehicles in Florida for 2022. 14 Gasoline powered vehicles still account for the overwhelming majority of vehicle registrations in Florida, with almost 16 million registered in Florida. 15 The United States Environmental Protection Agency (EPA) maintains an inventory of greenhouse gas (GHG) emissions by state, end-use sector, and type of gas, with the most recent inventory data for 2021. 16 According to this inventory, Florida’s net GHG emissions for all sectors peaked in 2005 and were slightly lower (0.7 percent) in 2021 as compared to 2008. 17 GHGs reported to the EPA by large facilities 18 in Florida have declined from 147 million metric tons in 2010 to 113 million metric tons in 2022. 19 In 2021, the transportation sector accounted for 41 percent of Florida’s GHG emissions, the electric power industry accounted for 35 percent, and the remaining 24 percent was associated with the industrial, commercial, agricultural, and residential sectors. 20 State Energy Policy and Governance (Sections 10-12) 8 EIA, Electricity Data Browser, https://www.eia.gov/electricity/data/browser/#/topic/0?agg=2,0,1&fuel=02fh&geo=g000001&sec=g&linechart=ELEC.GEN. AOR-US-99.A~ELEC.GEN.AOR-FL-99.A&columnchart=ELEC.GEN.AOR -US-99.A&map=ELEC.GEN.AOR -US- 99.A&freq=A&start=2001&end=2022&chartindexed=1&ctype=linechart<ype=pin&rtype=s&maptype=0&rse=0&pin= (last visited Jan. 12, 2024). 9 See, e.g., NREL, Documenting a Decade of Cost Declines for PV Systems, Feb. 10, 2021, https://www.nrel.gov/news/program/2021/documenting-a-decade-of-cost-declines-for-pv-systems.html (last visited Jan. 12, 2024) (stating that, from 2010 to 2020, there had been a 64%, 69%, and 82% reduction in the cost of residential, commercial-rooftop, and utility-scale PV systems, respectively and that a significant portion of the cost declines over that decade can be attributed to an 85% cost decline in module price). 10 Florida Department of Transportation (FDOT), Florida's Electric Vehicle Infrastructure Deployment Plan, August 2023, at 17, https://fdotwww.blob.core.windows.net/sitefinity/docs/default- source/emergingtechnologies/evprogram/2023_florida's-evidp_update_092923.pdf?sfvrsn=1e4aee0_1 (last visited Jan. 15, 2024). 11 U.S Department of Energy (DOE), Alternative Fuels Data Center, https://afdc.energy.gov/transatlas/#/?state=FL&view=vehicle_count (last visited Jan. 15, 2024). 12 FPSC, supra note 3, at 5-6, 19. 13 Id. at 17-20/. 14 DOE, supra note 11. 15 Id. 16 For purposes of the EPA’s inventory, GHGs include carbon dioxide, methane, fluorinated gases, and nitrous oxide. The inventory also accounts for changes associated with land use and forestry that affect the land’s ability to serve as a sink for GHG emissions. EPA, Greenhouse Gas Inventory Data Explorer, https://cfpub.epa.gov/ghgdata/inventoryexplorer/#iallsectors/allsectors/allgas/gas/all (last visited Jan, 15, 2024). 17 Id. 18 Facilities that emit 25,000 metric tons or more per year of GHGs are required to annually report their GHG emissions to the EPA. Roughly half of total U.S. GHG emissions are reported by direct emitters. EPA, Facility Level Information on Greenhouse Gases Tool, https://ghgdata.epa.gov/ghgp/main.do?site_preference=normal (last visited Jan. 12, 2024). 19 Id. 20 EPA, supra note 15. STORAGE NAME: h1645.ECC PAGE: 4 DATE: 1/27/2024 Present Situation In 1974, in response to the 1973-1974 oil embargo, 21 the Legislature, upon finding that a lack of accurate and relevant information was hampering its ability to develop energy policy to address the energy resource shortages facing the state, created an “energy data center” to collect data on production, refinement, transportation, storage, and sale of energy resources in Florida, including all types of fossil fuels, nuclear energy, and renewables. 22 Three years later, the Legislature developed an energy policy statement with a focus on energy conservation, alternative energy resources, and public education about energy use. 23 This energy policy statement is still mostly intact in Florida law. 24 In 1978, the Legislature transferred the duties of the energy data center to the former Department of Administration and expanded those duties to include additional data analysis and forecasting, public education, promoting conservation, and coordinating state energy-related programs. 25 This list of duties is now reflected in the duties established in current law for the Department of Agriculture and Consumer Services (DACS). 26 Florida’s current energy policies are largely established through various provisions of law related to specific aspects of energy production, distribution, sales, and use. The Legislature last addressed energy policy at a holistic level in 2008, 27 when it adopted the following statement of intent with regard to energy resource planning and development, which is unchanged in current law: 28 The Legislature finds that the state’s energy security can be increased by lessening dependence on foreign oil; that the impacts of global climate change can be reduced through the reduction of greenhouse gas emissions; and that the implementation of alternative energy technologies can be a source of new jobs and employment opportunities for many Floridians. The Legislature further finds that the state is positioned at the front line against potential impacts of global climate change. Human and economic costs of those impacts can be averted by global actions and, where necessary, adapted to by a concerted effort to make Florida’s communities more resilient and less vulnerable to these impacts. In focusing the government’s policy and efforts to benefit and protect our state, its citizens, and its resources, the Legislature believes that a single government entity with a specific focus on energy and climate change is both desirable and advantageous. Further, the Legislature finds that energy infrastructure provides the foundation for secure and reliable access to the energy supplies and services on which Florida depends. Therefore, there is significant value to Florida consumers that comes from investment in Florida’s energy infrastructure that increases system reliability, enhances energy independence and diversification, stabilizes energy costs, and reduces greenhouse gas emissions. In 2008, the Legislature also adopted the following energy policy statements, which are unchanged in current law: 29 It is the policy of the State of Florida to: Develop and promote the effective use of energy in the state, discourage all forms of energy waste, and recognize and address the potential of global climate change wherever possible. Play a leading role in developing and instituting energy management programs aimed at promoting energy conservation, energy security, and the reduction of greenhouse gas emissions. 21 See, generally, U.S Department of State, Office of the Historian, Oil Embargo, 1973-1974, https://history.state.gov/milestones/1969-1976/oil-embargo (last visited Jan. 12, 2024). 22 Ch. 74-186, L.O.F. 23 Ch. 77-334, L.O.F. 24 See s. 377.601(2), F.S. 25 Ch. 78-25, L.O.F. 26 See ss. 377.603 and 377.703, F.S. 27 Ch. 2008-227, L.O.F. 28 S. 377.601(1), F.S. 29 S. 377.601(2), F.S. STORAGE NAME: h1645.ECC PAGE: 5 DATE: 1/27/2024 Include energy considerations in all state, regional, and local planning. Utilize and manage effectively energy resources used within state agencies. Encourage local governments to include energy considerations in all planning and to support their work in promoting energy management programs. Include the full participation of citizens in the development and implementation of energy programs. Consider in its decisions the energy needs of each economic sector, including residential, industrial, commercial, agricultural, and governmental uses, and reduce those needs whenever possible. Promote energy education and the public dissemination of information on energy and its environmental, economic, and social impact. Encourage the research, development, demonstration, and application of alternative energy resources, particularly renewable energy resources. Consider, in its decisionmaking, the social, economic, and environmental impacts of energy- related activities, including the whole-life-cycle impacts of any potential energy use choices, so that detrimental effects of these activities are understood and minimized. Develop and maintain energy emergency preparedness plans to minimize the effects of an energy shortage within Florida. Under current law, 30 DACS is required to perform the following functions, consistent with the development of a state energy policy: Perform or coordinate the functions of any federal energy programs delegated to the state, including energy supply, demand, conservation, or allocation. Analyze present and proposed federal energy programs and make recommendations regarding those programs to the Governor and the Legislature. Coordinate efforts to seek federal support or other support for state energy activities, including energy conservation, research, or development, and is responsible for the coordination of multiagency energy conservation programs and plans. Analyze energy data collected and prepare long-range forecasts of energy supply and demand in coordination with the Public Service Commission (PSC), which is responsible for electricity and natural gas forecasts, which must contain: o An analysis of the relationship of state economic growth and development to energy supply and demand. o Plans for the development of renewable energy resources and reduction in dependence on depletable energy resources, particularly oil and natural gas, and an analysis of the extent to which renewable energy sources are being utilized in the state. o Consideration of alternative scenarios of statewide energy supply and demand for 5, 10, and 20 years to identify strategies for long-range action, including identification of potential social, economic, and environmental effects. o An assessment of the state’s energy resources, including examination of the availability of commercially developable and imported fuels, and an analysis of anticipated effects on the state’s environment and social services resulting from energy resource development activities or from energy supply constraints, or both. Submit an annual report to the Governor and the Legislature reflecting its activities and making recommendations for policies for improvement of the state’s response to energy supply and demand and its effect on the health, safety, and welfare of the residents of this state, including a report from the PSC on electricity and natural gas and information on energy conservation programs, with recommendations for energy efficiency and conservation programs for the state. Promote the development and use of renewable energy resources, consistent with the state comprehensive plan and the policy statements made in 2008. Promote energy efficiency and conservation in all energy use sectors in the state, including consultation with the Department of Management Services to coordinate energy conservation programs of state agencies. 30 S. 377.703, F.S. STORAGE NAME: h1645.ECC PAGE: 6 DATE: 1/27/2024 Serve as the state clearinghouse for indexing and gathering all information related to energy programs in state universities, in private universities, in federal, state, and local government agencies, and in private industry and prepare and distribute this information in any manner necessary to inform and advise the public. Coordinate energy-related programs of state government. Promote a comprehensive research plan for state programs, which must be consistent with state energy policy and be updated on a biennial basis. Prepare an assessment of the state’s renewable energy production credit. DACS is also responsible for administering the Florida Renewable Energy Technologies and Energy Efficiency Act, 31 which consists of the Renewable Energy and Energy-Efficient Technologies Grant Program, and the Florida Green Government Grants Act. 32 Both programs are discussed in further detail in this analysis under Energy Grant Programs, below. Effect of the Bill The bill replaces the current statement of legislative intent concerning the state’s energy policy with a more streamlined statement of intent that expresses the purpose of the state’s energy policy. The new statement of intent provides: The purpose of the state's energy policy is to ensure an adequate and reliable supply of energy for the state in a manner that promotes the health and welfare of the public and economic growth. The Legislature intends that governance of the state's energy policy be efficiently directed toward achieving this purpose. For purposes of achieving this new statement of intent, the bill provides a list of specific, fundamental policy goals to guide the state’s energy policy. These goals are: Ensuring a cost-effective and affordable energy supply; Ensuring adequate supply and capacity; Ensuring a secure, resilient, and reliable energy supply, with an emphasis on a diverse supply of domestic energy resources; Protecting public safety; Ensuring consumer choice; Protecting the state's natural resources, including its coastlines, tributaries, and waterways; and Supporting economic growth. The bill’s revised statement of intent removes current legislative findings related to global climate change, and the bill’s list of energy policy goals does not specifically address global climate change. Consistent with the bill’s revised statement of legislative intent and its list of energy policy goals, the bill revises the energy policy statements in current law. These changes: Specify that it is the state’s policy to promote the “cost-effective development and use of a diverse supply of domestic energy resources in the state,” rather than the “effective use of energy in the state.” Remove a provision that provides for recognizing and addressing “the potential of global climate change” as a state energy policy. Add that promotion of “the cost-effective development and maintenance of energy infrastructure that is resilient to natural and manmade threats to the security and reliability of the state's energy supply” is a state energy policy. Remove a provision that provides for the state to “play a leading role in developing and instituting energy management programs aimed at promoting energy conservation, energy security, and the reduction of greenhouse gas emissions.” 31 Ss. 377.801-377.804, F.S. 32 S. 377.808, F.S. STORAGE NAME: h1645.ECC PAGE: 7 DATE: 1/27/2024 Add that reduction of “reliance on foreign energy resources” is a state energy policy. Provide that it is the state’s policy to promote energy education and dissemination of public information on energy and its impacts in relation to the list of energy policy goals established by the bill. Provide that it is the state’s energy policy to consider, in its decision-making, the impacts of energy-related activities on the energy policy goals established in the bill. Provide that it is the state’s energy policy to encourage the research, development, demonstration, and application of domestic energy resources, including the use of renewable resources. The bill also revises DACS’ energy-related duties to be consistent with these changes. First, the bill requires that DACS advocate for energy issues consistent with the bill’s list of energy policy goals. Next, the bill provides that DACS’ energy data analyses must address potential impacts in relation to the bill’s list of energy policy goals. The bill removes a provision that requires these analyses to include plans for development of renewable energy resources and reduction in dependence on depletable energy resources. Reliability and Resilience of Energy Infrastructure and Supply (Sections 1, 8, 17, 19, 20) Present Situation Florida’s Electrical Power Grid State Oversight of Electrical Power Plant Development The electric power grid primarily consists of a network of transmission lines, substations, distribution lines, transformers, and meters that deliver electricity from electrical power plants to homes and businesses. Since 1974, the PSC has had jurisdiction over the planning, development, and maintenance of a coordinated electric power grid throughout Florida to assure an adequate and reliable source of energy for operational and emergency purposes and to avoid uneconomic duplication of facilities. 33 The PSC exercises this jurisdiction, in part, through its review of electric utilities’ ten-year plans regarding power generating needs and proposed electrical power plant sites 34 and through its review of applications for certain electrical power plant additions and expansions under the Florida Electrical Power Plant Siting Act (PPSA) 35 and certain intrastate transmission line additions and expansions under the Florida Electric Transmission Line Siting Act (TLSA). 36 Florida’s Department of Environmental Protection (DEP), through its Division of Air Resource Management, is charged with protecting and managing Florida’s air resource, including monitoring air quality, issuing permits for construction and operation of certain sources of emissions, and enforcing compliance by those sources with applicable federal and state regulations. 37 The PPSA and TLSA establish centrally coordinated permitting processes for the siting of certain electrical power plants and transmission lines. These processes are administered by DEP and allow for input from state agencies and local governments whose jurisdictions are impacted by a proposed plant or transmission line. Both laws are intended “to effect a reasonable balance” between the need for a facility and the environmental impact resulting from construction and operation of the facility, including air and water quality, fish and wildlife, and water resources and other natural resources of the state. 38 33 Ch. 74-196, L.O.F., codified at s. 366.04(5), F.S. 34 S. 186.801, F.S. 35 Ss. 403.501-403.508, F.S. 36 Ss. 403.52-403.5365, F.S. 37 Florida Department of Environmental Protection (DEP), Division of Air Resource Management, https://floridadep.gov/air (last visited January 19, 2024); DEP, Florida’s Air Quality, https://floridadep.gov/sites/default/files/Air%20Quality%20in%20Florida%200816-web.pdf (last visited January 19, 2024). 38 Ss. 403.502 and 403.521, F.S. STORAGE NAME: h1645.ECC PAGE: 8 DATE: 1/27/2024 The PSC is the sole forum for determining the need for an electrical power plant subject to the PPSA or a transmission line subject to the TLSA. 39 The PSC’s affirmative determination of need is required before DEP will conduct a project analysis and certification hearing for an electrical power plant or transmission line. 40 For purposes of certification under the PPSA, an electrical power plant includes any steam or solar electrical generating facility using any process or fuel (excluding facilities of less than 75 megawatts (MW) in capacity), plus the site, associated facilities physically or indirectly connected to the site, and associated power lines that connect the proposed plant to the electric grid. 41 Thus, most of the state’s large, baseload power plants, including natural gas combined cycle power plants, coal power plants, and nuclear power plants, require certification under the PPSA. Most utility-scale solar facilities in Florida have been configured to fall just below the 75 MW threshold and have not required certification under the PPSA. In determining the need for an electrical power plant, the PSC must take into account: The need for electric system reliability and integrity; The need for adequate electricity at a reasonable cost; The need for fuel diversity and supply reliability; Whether the proposed plant is the most cost-effective alternative available; Whether renewable energy sources and technologies, as well as conservation measures, are utilized to the extent reasonably available; The conservation measures taken by or reasonably available to the applicant or its members which might mitigate the need for the proposed plant; and Other matters within its jurisdiction which it deems relevant. 42 The PSC’s determination of need for an electrical power plant creates a presumption of public need and necessity for the plant. 43 In determining the need for a transmission line, the PSC must take into account: The need for electric system reliability and integrity; The need for abundant, low-cost electrical energy to assure the economic well-being of the residents of this state; The appropriate starting and ending point of the line; and Other matters within its jurisdiction which it deems relevant. 44 Ultimately, the Governor and Cabinet, who sit as the siting board, must consider the PSC’s determination of need along with land use and environmental issues when determining whether a proposed electrical power plant or transmission line should be approved, approved with modifications or conditions, or denied. 45 Proposed EPA Rules on Greenhouse Gas Emissions In May 2023, the U.S. Environmental Protection Agency (EPA) proposed new rules to limit GHG emissions from new and existing fossil fuel-fired electrical power plants and invited comments on its proposed rules. Under these proposed rules, the specific standards vary by the type of power plant (e.g., new or existing, coal-fired or natural-gas fired), how frequently it is used (base load, intermediate load, or peak load 46 ), and its operating horizon. 47 39 Ss. 403.519 and 403.537, F.S. 40 Ss. 403.507(4) and 403.537(1)(d), F.S. 41 Ss. 403.503(14) and 403,506(1), F.S. 42 S. 403.519(3), F.S. 43 Id. 44 S. 403.537(1)(c), F.S. 45 Ss. 403.509(3) and 403.529, F.S. 46 Though these terms may have more specific meanings in the EPA’s proposed rule, in general: STORAGE NAME: h1645.ECC PAGE: 9 DATE: 1/27/2024 For existing fossil fuel-fired stationary combustion turbines (primarily natural gas-fired units), these proposed standards require the use of either: Carbon capture and sequestration (CCS) technologies that achieve a 90% capture of GHG emissions by 2035; or The use of 30% (by volume) hydrogen produced from low-GHG emitting fuels to help fuel (“co- fire”) the plant by 2032, increasing to 96% by 2038. 48 For existing fossil fuel-fired steam generating units (primarily coal-fired units), the proposed standards vary based on the operating horizon of the unit. Units committed either to cease operations by January 1, 2032, or to cease operations by January 1, 2035, and operate at a capacity factor limit of 20 percent, face no requirements beyond routine maintenance. Units committed to cease operations by January 1, 2040, must co-fire with 40% (by volume) natural gas and achieve a 16 percent emissions rate reduction by 2030. 49 The proposed rules would require states, within 24 months of the effective date of the emissions guidelines, to submit plans to the EPA that provide for the establishment, implementation, and enforcement of standards of performance for existing sources. These state plans must generally establish standards that are at least as stringent as EPA’s emission guidelines. 50 Both the PSC and DEP submitted comments in opposition to the proposed rules. In its response, the PSC noted that: As of 2021, nearly 70% of Florida’s electricity generation came from natural gas and nearly 10% from coal. In 2031, the combined share of natural gas- and coal-fired electricity is currently estimated to be close to 70%. Therefore, a significant percentage of the generation in Florida could be impacted by the Proposed Rule. The FPSC has concerns that the Proposed Rule will adversely affect the reliability and cost of electricity service in Florida. 51 (footnotes omitted) Further, both the PSC and DEP noted that CCS and hydrogen co-firing have not been adequately demonstrated and that the proposed performance standards are not achievable by Florida’s power plant operators. 52 DEP further commented: “Base load” power plants normally supply all or part of the minimum, or base, demand (load) on the electric power grid; a base load generating unit runs continuously, producing electricity at a nearly constant rate throughout most of the day. “Peak load,” or “peaking,” power plants help to meet electricity demand when demand is at its highest, or peak, such as in the late afternoon when electricity use for air conditioning increases during hot weather. “Intermediate load” power plants provide load responsive operation between base load and peaking service; the demand profile varies over time and intermediate sources are in general technically and economically suited for following the changes in demand. See, e.g., EIA, Electricity explained, https://www.eia.gov/energyexplained/electricity/electricity-in-the-us-generation- capacity-and-sales.php (last visited Jan. 22, 2024). 47 EPA, Fact Sheet – Greenhouse Gas Standards and Guidelines for Fossil Fuel-Fired Power Plants, Proposed Rule (Fact Sheet), https://www.epa.gov/system/files/documents/2023-05/FS-OVERVIEW-GHG- for%20Power%20Plants%20FINAL% 20CLEAN.pdf (last visited Jan. 22, 2024). 48 Id. New base load units of the same type must satisfy these same standards and must use the most efficient available turbines. New intermediate load units of the same type must be co-fired with 30% (by volume) hydrogen produced from low-GHG emitting fuels by 2032 and must use the most efficient available turbines. 49 Id. 50 Id. 51 Comments of the Florida Public Service Commission, Aug. 3, 2023, U.S. EPA Docket No. EPA-HQ-OAR-2023-0072: New Source Performance Standards for Greenhouse Gas Emissions From New, Modified, and Reconstructed Fossil Fuel-Fired Electric Generating Units; Emission Guidelines for Greenhouse Gas Emissions From Existing Fossil Fuel-Fired Electric Generating Units; and Repeal of the Affordable Clean Energy Rule. 52 Id. See also Comments by the Florida Department of Environmental Protection (DEP Comments), Aug. 8, 2023, U.S. EPA Docket No. EPA-HQ-OAR-2023-0072: New Source Performance Standards for Greenhouse Gas Emissions From New, Modified, and Reconstructed Fossil Fuel-Fired Electric Generating Units; Emission Guidelines for Greenhouse Gas Emissions From Existing Fossil Fuel-Fired Electric Generating Units; and Repeal of the Affordable Clean Energy Rule. STORAGE NAME: h1645.ECC PAGE: 10 DATE: 1/27/2024 By prioritizing the use of unfounded technologies to force a reduction in readily available generation assets, the [EPA] places the reliability, affordability, and capacity of the nation’s energy supply at risk. This risk is especially concerning given Florida’s geographic position and natural susceptibility to hurricanes and natural disasters. 53 In its comments, the PSC asked that the EPA address these concerns by providing electric generating units (EGUs) with adequate timeframes and flexibility. The PSC stated that: [A] longer glide path for implementation would provide EGUs with adequate time to plan, invest, and optimize compliance measures, and it would facilitate a smoother integration of new technologies while enabling necessary infrastructure upgrades and a phased retirement or retrofitting of existing assets if required. This approach also avoids premature retirements that could result in stranded investments and potential reliability concerns. Moreover, a longer transition period would allow for additional development and deployment of advanced technologies, avoiding potential grid instability and ensuring the viability, scalability, and cost- effectiveness of emerging technologies before widespread implementation. 54 Electrical Power Plant Retirements Current law does not require approval of a decision to retire an electrical power plant. Retirements generally occur when an electric utility is unable to economically operate or maintain the plant due to environmental, economic, or technical concerns. 55 Planned retirements are reflected in annual, long- term plans submitted by electric utilities to the PSC for preliminary study. 56 Smart Grid The concept of a “smart grid” involves overlaying the electric power grid with digital technology that allows for two-way communication between utilities, components of their systems, and their customers and remote sensing along transmission and distribution lines. 57 Some of the benefits of a smart grid include: More efficient transmission of electricity; Quicker restoration of electricity after power disturbances; Reduced operations and management costs for utilities, and ultimately lower power costs for consumers; Providing information that allows consumers to better manage usage and costs; Reduced peak demand, which may also help lower electricity rates; Increased integration of large-scale renewable energy systems; Better integration of customer-owner power generation systems; and Improved security. 58 Many Florida electric utilities have taken steps to begin modernizing their electric grids to provide some of this functionality. 59 Smart grids continue to evolve as technologies are perfected, equipment is installed, and systems are tested. 60 53 Id.. 54 FPSC Comments, supra note 51. 55 FPSC, supra note 3, at 37. 56 See, generally, s. 186.801, F.S., requiring electric utilities to submit “10-year site plans” to the PSC for a preliminary study and specifying the topics to be addressed in the PSC’s preliminary study. 57 U.S. DOE, Office of Electricity, The Smart Grid, https://www.smartgrid.gov/the_smart_grid/smart_grid.html (last visited Jan. 26, 2024). 58 Id. 59 See, e.g., Presentations to the Florida House of Representatives, Commerce Committee, by Brian Lloyd, Duke Energy Florida, Building a Smarter Energy Future (Nov. 14, 2023) and David Lukcic, TECO Tampa Electric, Grid Modernization Transformative Journey (Nov. 14, 2023) available at https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&CommitteeId=3220&S ession=2024&DocumentType=Meeting+Packets&FileName=com+11 -14-23.pdf (last visited Jan. 26, 2024). STORAGE NAME: h1645.ECC PAGE: 11 DATE: 1/27/2024 Natural Gas Infrastructure Natural gas is transported to Florida consumers via three major interstate pipelines: Florida Gas Transmission Company (3.2 billion cubic feet, or bcf, per day), Gulfstream Natural Gas System (1.4 bcf per day), and Sabal Trail Interstate Pipeline (1.1 bcf per day). Florida also receive natural gas from two minor interstate pipelines: Gulf South Pipeline Company reaches into northwest Florida, and Southern Natural Gas reaches into north Florida. 61 Companies seeking to build interstate natural gas pipelines must obtain certificates of public convenience and necessity issued by the Federal Energy Regulatory Commission (FERC). FERC considers both economic and environmental factors in its review. 62 Construction and operation of intrastate natural gas pipelines generally require approval through a process similar to the PPSA and TLSA processes. The Natural Gas Transmission Pipeline Siting Act (NGTPSA) 63 is the state’s process for licensing the construction and operation of such pipelines within Florida. 64 The NGTPSA provides a centralized and coordinated permitting process for the location of natural gas transmission pipeline corridors and the construction and maintenance of natural gas transmission pipelines in Florida. 65 An intrastate natural gas pipeline does not require certification if the pipeline: Is less than 15 miles long or does not cross a county line; 66 Has been issued a certificate of public convenience and necessity by FERC under s. 7 of the Natural Gas Act; 67 Has been certified as an associated facility to an electrical power plant pursuant to the PPSA; 68 or Is owned or operated by a municipality or an agency thereof, by any person primarily for the local distribution of natural gas, or by a special district created by special act to distribute natural gas. 69 These exceptions do not preclude an applicant from applying for certification under the NGTPSA. 70 The U.S. Department of Transportation/Pipeline and Hazardous Materials Safety Administration (PHMSA) implements federal pipeline safety standards for interstate and intrastate gas pipelines, hazardous liquid pipelines, and underground natural gas storage under the Pipeline Safety Act. 71 The Pipeline Safety Act authorizes state assumption of the intrastate regulatory, inspection, and enforcement responsibilities subject to an annual certification with PHMSA. 72 State agencies must adopt standards that comply with the Pipeline Safety Act to qualify for certification. In Florida, The Gas Safety Law of 1967 authorizes the PSC to regulate the safe transmission and distribution of natural gas in Florida. 73 The Gas Safety Law grants the PSC exclusive jurisdiction over “all persons, corporations, partnerships, associations, public agencies, municipalities, or other legal entities engaged in the operation of gas transmission or distribution facilities with respect to their 60 DOE, supra note 57. 61 FPSC, supra note 5, at 13 and 17. 62 See Congressional Research Service, Interstate Natural Gas Pipeline Siting: FERC Policy and Issues for Congress, Jun. 9, 2024, available at https://crsreports.congress.gov/product/pdf/R/R45239 (last visited Jan. 23, 2024). 63 Ss. 403.9401-403.9425, F.S. 64 Florida Department of Environmental Protection, Natural Gas Pipeline Siting Act (July 27, 2022), https://floridadep.gov/water/siting-coordination-office/content/natural-gas-pipeline-siting-act (last visited Jan. 18, 2024). 65 S. 403.9402, F.S. 66 S. 403.9405(2)(a), F.S. 67 S. 403.9405(2)(b), F.S. 68 S. 403.9405(2)(b), F.S. 69 S. 403.9405(2)(c), F.S. 70 S. 403.9405(2)(a)-(c), F.S. 71 See 49 U.S.C. §§ 60102-60143. 72 49 U.S.C. §§ 60105(e), 60106(d). 73 S. 368.01-061, F.S. STORAGE NAME: h1645.ECC PAGE: 12 DATE: 1/27/2024 compliance with the rules and regulations governing safety standards.” 74 Under this authority, the PSC promulgates rules covering the design, improvement, fabrication, installation, inspection, repair, reporting, testing, and safety standards of gas transmission and gas distribution systems. 75 The PSC is currently the state agency certified by PHMSA to inspect and enforce intrastate gas pipelines. 76 Land Development Regulations and Comprehensive Plans Under the Community Planning Act, local governments manage local growth through comprehensive plans enforced by local land use ordinances. 77 The Act prescribes certain principles, guidelines, standards, and strategies to allow for an orderly and balanced future land development 78 and outlines the required and optional elements of a comprehensive plan. 79 Local governments are directed to create and adopt comprehensive plans which are sensitive to private property rights, have no undue restrictions, and leave property owners free from government action that would harm their property or constitute an inordinate burden on their property rights. 80 Effect of the Bill Electrical Power Plant Retirements The bill requires that a public utility must seek approval from the PSC to retire the same types of electrical power plants that require a determination of need from the PSC. Specifically, the bill defines an electrical power plant for these purposes as any steam or solar electrical generating facility that uses any process or fuel, including nuclear materials, with a capacity of 75 megawatts or more, along with all associated facilities necessary for the continued operation of the electrical power plant, such as facilities that are physically connected to the electrical power plant and facilities that are used to connect the electrical power plant to an existing transmission network. The bill requires a utility to provide the PSC with 30 days’ notice of its intent to file for approval of a power plant retirement. The PSC must enter a final order approving, approving with conditions, or denying such a request within 180 days. The bill requires the PSC, in making its determination, to take into account many of the same factors required when determining the need for a new or expanded electrical power plant. Specifically, the PSC must take into account the impact of the proposed retirement on: Electric system reliability, resilience, and integrity. The ability to provide adequate electricity at a reasonable cost, including potential rate impacts. Fuel diversity and supply reliability. The use of domestic energy resources, including renewable energy resources. The state's energy policy goals established in the bill, as previously discussed. If the PSC determines that the basis for retirement is a requirement or inducement provided in a proposed or actual federal regulation and that such retirement is inconsistent with the state's energy policy goals established in the bill, as discussed above, the bill requires the PSC to inform and provide technical support to the Attorney General, as needed, to address the inconsistency. Development of Smart Grid Policies The bill explicitly recognizes “the continued development and growth of markets for technologies that allow businesses and consumers to generate, store, and manage electrical energy for their own use,” and that “the use of these technologies has the potential to significantly impact the electric grid and consumer choice.” The bill directs the PSC to ensure that these technologies are used in a manner that 74 S. 368.05(1), F.S.; see also S. 368.021, F.S. (providing more entities subject to PSC jurisdiction). 75 See ch. 25-12, F.A.C. 76 Florida Public Service Commission, Agency Analysis of 2023 House Bill 81, p. 2 (October 26, 2023). 77 S. 163.3167(1)(b), F.S. 78 S. 163.3167(2), F.S. 79 S. 163.3177, F.S. 80 S. 163.3161(10), F.S. Specifically, such plans STORAGE NAME: h1645.ECC PAGE: 13 DATE: 1/27/2024 maintains the integrity of the state’s electric power grid through market-based policies for consumers and public utilities and through grid improvements that ensure the safe, reliable, and cost-effective use of electricity from these technologies. Specifically, the bill requires the PSC to develop policies that: Establish programs and rate mechanisms for smart energy demand response and for customer-owned generation and energy storage exported to the grid or used to enhance grid stability or resilience and reduce costs, so that financial benefits are shared among users of these technologies, public utilities, and their general body of ratepayers based on the value provided by and to each party; Address the modernization of the state's electric grid to ensure that the necessary infrastructure is in place to implement these programs and rate mechanisms; and Ensure that equipment used by utilities and consumers to implement and participate in these programs and rate mechanisms is manufactured in the United States or in countries engaged in commerce with the United States pursuant to free trade agreements. The bill provides that these policies, including the basis for each policy and any other relevant matters, must be submitted in a report to the Legislature for consideration and, with the exception of limited pilot projects or programs, may not be implemented until approved by the Legislature. Intrastate Natural Gas Pipeline Permitting The bill increases the minimum length of an intrastate natural gas pipeline that requires certification under the NGTPSA from 15 miles to 100 miles. A natural gas transmission pipeline company may still obtain certification under the NGTPSA if it chooses to do so. Land Development Regulations and Comprehensive Plans for Certain Natural Gas Facilities The bill defines the term “resiliency facility” as a facility owned and operated by a public utility for the purposes of assembling, creating, holding, securing, or deploying natural gas reserves for temporary use during a system outage or natural disaster. Under the bill, “natural gas reserve” means a facility that is capable of storing and transporting and, when operational, actively stores and transports a supply of natural gas. The bills states that a resiliency facility is a permitted use in all commercial, industrial, and manufacturing land use categories in a local government comprehensive plan and in all commercial, industrial, and manufacturing districts. Under the bill, a resiliency facility must comply with the setback and landscape criteria for other similar uses. As long as buffer and landscaping requirements do not exceed the requirements for similar uses in commercial, industrial, and manufacturing land use categories and zoning districts, a local government may adopt an ordinance specifying such requirements for resiliency facilities. The bill provides that after July 1, 2024, a local government may not amend its comprehensive plan, land use map, zoning districts, or land development regulations in a way that would conflict with a resiliency facility’s classification as a permitted and allowable use, including, but not limited to, a nonconforming use, structure, or development. Security and Resiliency Assessment of Electric and Natural Gas Infrastructure The bill requires the PSC to conduct an assessment of the security and resiliency of the state's electric grid and natural gas facilities against both physical threats and cyber threats and requires the PSC to consult with the Florida Digital Service in assessing cyber threats. The bill provides that all electric utilities, natural gas utilities, and natural gas pipelines operating in this state, regardless of ownership structure, shall cooperate with the PSC to provide access to all information necessary to conduct the assessment. STORAGE NAME: h1645.ECC PAGE: 14 DATE: 1/27/2024 The bill requires the PSC, by January 1, 2025, to submit a report of its assessment to the Governor, the President of the Senate, and the Speaker of the House of Representatives. The report must also contain any recommendations for potential legislative or administrative actions that may enhance the physical security or cyber security of the state's electric grid or natural gas facilities. Provision of Transportation Fuels by Public Utilities (Sections 7 and 9) Present Situation Under Florida law, the term “public utility” includes providers of electricity or natural gas, with the exception of rural cooperatives, municipal utilities, special districts, and wholesale-only pipeline companies. 81 With the growing use of EVs, most public electric utilities in the state have begun to offer EV charging services through their own public charging equipment, charging equipment at customer premises, or both. These services are typically provided under pilot programs and at rates approved by the PSC. Some public natural gas utilities in Florida support natural gas vehicle fueling under specific rate schedules approved by the PSC, either through publicly accessible compressed natural gas fueling facilities or through delivery of such gas to customer premises for use by the customer to fuel vehicles (typically for fleet fueling). Effect of the Bill The bill provides that the PSC, without specific legislative authority, may not authorize a public utility to expand the scope of its regulated business activity to include direct sales of energy to a consumer solely for the consumer's use in powering means of transportation owned by the consumer. The bill provides that it does not apply to limited or pilot programs approved by the PSC before January 1, 2024. The bill provides specific authority for the PSC to approve public utility programs for residential, customer-specific EV charging if the PSC determines that the rates and rate structure of the program will not adversely impact the public utility's general body of ratepayers. The bill requires that all revenues received from the program must be credited to the utility's retail ratepayers. The bill provides that it does not preclude cost recovery for EV charging programs approved by the PSC before January 1, 2024. Energy Guidelines for Public Business (Section 2) Present Situation Current law requires state agencies to follow specified guidelines to promote energy efficiency and other environmental benefits when conducting public business. 82 Such guidelines require state agencies to: Consult the Florida Climate-Friendly Preferred Products List 83,84 when procuring products from state term contracts 85 and procuring such products if the price is comparable; 86 81 S. 366.02(8), F.S. 82 S. 286.29, F.S. 83 The Florida Climate-Friendly Preferred Products List is developed by the Department of Management Services (DMS), which works with the Department of Environmental Protection to continually assess the list. The list identifies specific products and vendors that offer energy efficiency or other environmental benefits over competing products. See s. 286.29(1), F.S. 84 The Florida Climate-Friendly Preferred Products List was last updated in January of 2021 and contains 12 recommended products, which all are categorized as either hand sanitizer or cleaning supplies. See Florida Climate- Friendly Preferred Products List, Department of Management Services (Jan. 2021), https://www.dms.myflorida.com/business_operations/state_purchasing/state_contracts_and_agreements/florida_climate- friendly_preferred_products_list (last visited Jan. 12, 2024). 85 A state term contract is a contract for commodities or contractual services that is competitively procured by DMS and is used by agencies and other eligible users. See ss. 287.012(28), F.S. and 287.042(2)(a), F.S 86 S. 286.29(1), F.S. STORAGE NAME: h1645.ECC PAGE: 15 DATE: 1/27/2024 Contract for meeting and conference space only with facilities that have received the “Green Lodging” designation from DEP for best practices in water, energy, and wastewater efficiency standards, absent a determination from the agency head that no other viable alternative exists; 87 Ensure all maintained vehicles meet minimum maintenance schedules shown to reduce fuel consumption and reporting compliance to the Department of Management Services (DMS); 88 and Use ethanol and biodiesel blended fuels when available. State agencies administering central fueling operations for state-owned vehicles must procure biofuels for fleet needs to the greatest extent practicable. 89 Additionally, when procuring new vehicles, state agencies, state universities, community colleges, and local governments that purchase vehicles under a state purchasing plan must first define the intended purpose for the vehicle and determine which statutorily listed use class 90 the vehicle is being procured for. These vehicles must be selected based on the greatest fuel efficiency available for the appropriate use class when fuel economy data is available. Exceptions may be made for emergency response vehicles in certain circumstances. 91 Goods Produced by Child and Forced Labor The Bureau of International Labor Affairs (ILAB) in the United States Department of Labor maintains a list of goods and the countries which they are sourced from which ILAB has reason to believe are produced by child labor or forced labor. ILAB maintains this list to raise awareness about these issues in an effort to combat them. This list also provides information to consumers by highlighting product categories that may be at risk of being produced with child labor or forced labor. 92 Effect of the Bill Under the bill, DMS is no longer required to maintain the Florida Climate-Friendly Preferred Products List, and state agencies are no longer required to consult the list when procuring products from state term contracts. The bill repeals the requirement that state agencies contract for meeting and conference space only with hotels or conference facilities that have received the “Green Lodging” designation. Under the bill, state agencies, local governments, state universities, and community colleges procuring a new vehicle no longer have to select each vehicle based on the greatest fuel efficiency available for the use class. The bill requires DMS, in consultation with the Department of Commerce (COM) and DACS, to develop the Florida Humane Preferred Energy Products List. In developing the list, DMS must assess products currently available for purchase under state term contracts and identify specific products that appear to be largely made free from forced labor if the products contain or consist of: An energy storage device with a capacity of greater that one kilowatt, or An energy generation device with a capacity of greater than 500 kilowatts. Under the bill, the term “forced labor” means any work performed or service rendered that is: 87 S. 286.29(2), F.S. 88 S. 286.29(3), F.S. 89 S. 286.29(5), F.S. 90 Vehicle use classes include: state business travel, designated operator; state business travel, pool operators; construction, agricultural, or maintenance work; conveyance of passengers; conveyance of building or maintenance materials and supplies; off-road vehicle, motorcycle, or all-terrain vehicle; emergency response; or other. S. 286.29(4), F.S. 91 S. 286.29(4), F.S. 92 U.S. Department of Labor, Bureau of International Labor Affairs, List of Goods Produced by Child Labor or Forced Labor, https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods (last visited Jan. 12, 2024). STORAGE NAME: h1645.ECC PAGE: 16 DATE: 1/27/2024 Obtained by intimidation, fraud, or coercion, including by threat of serious bodily harm to, or physical restraint against, a person, by means of a scheme intended to cause the person to believe that if he or she does not perform such labor or render such service, the person will suffer serious bodily harm or physical restraint, or by means of the abuse or threatened abuse of law or the legal process; Imposed on the basis of a characteristic that has been held by the United States Supreme Court or the Florida Supreme Court to be protected against discrimination under the Fourteenth Amendment to the United States Constitution or under s. 2, Art. I of the State Constitution, including race, color, national origin, religion, gender, or physical disability; Not performed or rendered voluntarily by a person; or In violation of the Child Labor Law or otherwise performed or rendered through oppressive child labor. When procuring the specified energy storage and generation devices, state agencies and political subdivisions must consult the Florida Humane Preferred Energy Products List and only purchase products from the list. STORAGE NAME: h1645.ECC PAGE: 17 DATE: 1/27/2024 Energy Grant Programs (Sections 13-16) Present Situation Renewable Energy and Energy-Efficient Technologies Grant Program The Renewable Energy and Energy-Efficient Technologies (REET) Grant Program is established within DACS to provide matching grants for demonstration, commercialization, research, and development projects relating to renewable energy technologies and innovative technologies that significantly increase energy efficiency for vehicles and commercial buildings. 93 The REET program is no longer active. 94 Florida Green Government Grants Act DACS also administers the Florida Green Government Grants Act. 95 DACS is directed to adopt rules and come up with green government standards that provide for cost-efficient solutions, reducing greenhouse gas emissions, improving quality of life, and strengthening the state’s economy. 96 DACS must administer the program to assist local governments, including municipalities, counties, and school districts in the development and implementation of programs that achieve green standards. 97 The Florida Green Government Grants program is no longer active. 98 Energy Economic Zone Pilot Program In 2009, the Legislature authorized the creation of the Energy Economic Zone Pilot Program for the purpose of developing a model area that incorporates energy-efficient land-use patterns, cultivates green economic development, encourages the generation of renewable electric energy, and promotes the manufacturing of “green” products and jobs. 99 Florida law directs the Department of Commerce, 100 in consultation with the Department of Transportation to implement the program. 101 Qualified Energy Conservation Bond Allocation Qualified Energy Conservation Bonds (QECBs) are taxable bonds that are issued by state or local governments to finance one or more qualified energy conservation purpose. QCEBs are federally funded, with Congress first authorizing the program in 2008. Examples of qualified projects include energy efficiency capital expenditures in public buildings, green communities, renewable energy production, and energy efficiency education campaigns. 102 Current law authorizes DACS to establish an allocation program for Florida’s QCEB allocation in accordance with federal law. 103 Effect of the Bill 93 S. 377.804, F.S. 94 Email from Isabelle Garbarino, Director of Legislative Affairs, Florida Department of Agriculture and Consumer Services, RE: [External]RE: Question about grants programs (Jan. 22, 2024). 95 S. 377.808, F.S. 96 S. 377.808(2), F.S. 97 Id. 98 Email from Isabelle Garbarino, Director of Legislative Affairs, Florida Department of Agriculture and Consumer Services, RE: [External]RE: Question about grants programs (Jan. 22, 2024). 99 S. 377.809(1), F.S. 100 In 2023, the Department of Economic Opportunity was renamed as the Department of Commerce. See Chapter 2023- 173, Laws of Fla. 101 S. 377.809(1), F.S. 102 Kelly Smith Burk, Florida Department of Agriculture and Consumer Services, Qualified Energy Efficiency Conservation Bonds (QCEB) Formula Allocations to Large Local Jurisdiction (Apr. 23, 2015), https://ccmedia.fdacs.gov/content/download/60128/file/FDACS%27_Memorandum_regarding_Qualified_Energy_Conserv ation_Bond_Formula_Allocations_to_Large_Local_Governments.pdf (last visited Jan. 25, 2024). 103 S. 377.816, F.S. STORAGE NAME: h1645.ECC PAGE: 18 DATE: 1/27/2024 The bill repeals the REET Grant Program, the Florida Green Government Grants Act, the Energy Economic Zone Pilot Program, and all provisions related to Qualified Energy Conservation Bonds. Under the bill, no new applications, certifications, or allocations may be approved; no new letters of certification may be issued; no new contracts or agreements may be executed; and no new awards may be made for the repealed programs. All certifications or allocations issued under such programs are rescinded except for the certifications of, or allocations to, those certified applicants or projects that continue to meet the applicable criteria in effect before July 1, 2024. Any existing contract or agreement authorized under any of these programs shall continue in full force and effect in accordance with the statutory requirements in effect when the contract or agreement was executed or last modified. However, further modifications, extensions, or waivers may not be made or granted relating to such contracts or agreements, except computations by the Department of Revenue of the income generated by or arising out of the qualifying project. Consumer Choice of Energy Resources (Sections 5, 6, 18) Present Situation Services on Florida’s Turnpike System Florida’s Turnpike, extending from Lake County to Miami Gardens, is operated by the Florida Department of Transportation (DOT), and is used daily by more than three million customers. 104 The DOT is permitted to enter into contracts or licenses with any person for the sale of services or products or business opportunities on the turnpike. 105 Services, business opportunities, and products authorized to be sold include, but are not limited to 106 : Motor fuel; Vehicle towing and maintenance services; Food with attendant nonalcoholic beverages; Lodging, meeting rooms, and other business services opportunities; Advertising and other promotional opportunities; State lottery tickets sold by authorized retailers; Games and amusements that operate by the application of skill; Florida citrus, goods promoting the state, or handmade goods produced within the state; and Travel information, tickets, reservations, or other related services. Vendors are incentivized to provide services, business opportunities, and products on the turnpike as anyone the DOT has a contract or license with to provide these services, business opportunities, and products is not required to pay any commercial rental tax imposed under s. 212.031, F.S., on any capital improvements constructed, improved, acquired, installed, or used for such purposes. 107 Community Development Districts Community development districts (CDDs) are a type of independent special district intended to provide urban community services in a cost-effective manner by managing and financing the delivery of basic services and capital infrastructure to developing communities without overburdening other governments and their taxpayers. 108 As of January 18, 2024, there were 961 active CDDs in Florida. 109 104 Florida’s Turnpike, https://floridasturnpike.com/ (last visited Jan. 13, 2024). 105 S. 338.234(1), F.S. 106 S. 338.234(1), F.S. 107 S. 338.234(2), F.S. 108 S. 190.002(1)(a), F.S. 109 Dept. of Commerce, Special District Accountability Program, Official List of Special Districts, available at https://specialdistrictreports.floridajobs.org/OfficialList/CustomList (last visited Jan. 26, 2024). STORAGE NAME: h1645.ECC PAGE: 19 DATE: 1/27/2024 Each CDD is governed by a five-member board elected by the landowners of the district on a one-acre, one-vote basis. 110 Board members serve four-year terms, except some initial board members serve a two-year term for the purpose of creating staggered terms. 111 After the sixth year (for districts of up to 5,000 acres) or the 10th year (for districts exceeding 5,000 acres or for a compact, urban, mixed-use district 112 ) following the CDD’s creation, each member of the board is subject to election by the electors of the district at the conclusion of their term. However, this transition does not occur if the district has fewer than 250 qualified electors (for districts of up to 5,000 acres) or 500 qualified electors (for districts exceeding 5,000 acres or for a compact, urban, mixed-use district). 113 Homeowners’ Associations A homeowners’ association (HOA) is an association of residential property owners in which voting membership is made up of parcel owners and membership is a mandatory condition of parcel ownership. HOAs are authorized to impose assessments that, if unpaid, may become a lien on the parcel. 114 Only HOAs whose covenants and restrictions include mandatory assessments are regulated under chapter 720, F.S., the Homeowners’ Association Act (HOA Act). An HOA is administered by an elected board of directors (board). The powers and duties of an HOA include the powers and duties provided in the HOA Act and in the association’s governing documents, which include the recorded covenants and restrictions, together with the bylaws, articles of incorporation, and duly adopted amendments to those documents. 115 An HOA must be a Florida corporation, and the initial governing documents must be recorded in the official records of the county in which the community is located. The powers and duties of an association include those set forth in the HOA Act and in the governing documents, except as expressly limited or restricted in the HOA Act. HOA governing documents may not: Prohibit a homeowner from displaying up to two portable, removable flags in a respectful manner, consistent with the requirements for the United States flag. 116 Prohibit any property owner from implementing Florida-friendly landscaping 117 on his or her land or create any requirement or limitation in conflict with any provision of part II of Chapter 373, F.S., regarding consumptive uses of water or a water shortages order. 118 Prohibit solar collectors, clotheslines, or other energy devices based on renewable resources from being installed on buildings erected on the lots or parcels covered by the deed restriction, covenant, declaration, or binding agreement. 119 Additionally, HOAs may not restrict the installation, display, and storage of any items on a parcel that are not visible from the parcel’s frontage or an adjacent parcel, unless the item is prohibited by general law or local ordinance. Such items include, but are not limited to: 120 110 S. 190.006(2), F.S. 111 S. 190.006(1), F.S. 112 S. 190.006(3)(a)2.a., F.S. A “compact, urban, mixed-use district” is a district located within a municipality and a CRA that consists of a maximum of 75 acres, and has development entitlements of at least 400,000 square feet of retail development and 500 residential units. S, 190.003(7), F.S. 113 S. 190.006(3)(a)2.b., F.S. 114 S. 720.301(9), F.S. 115 See generally ch. 720, F.S. 116 S. 720.3075(3), F.S. 117 Section 373.185, F.S., defines “Florida-friendly landscaping” as quality landscapes that conserve water, protect the environment, are adaptable to local conditions, and are drought tolerant. The principles of such landscaping include planting the right plant in the right place, efficient watering, appropriate fertilization, mulching, attraction of wildlife, responsible management of yard pests, recycling yard waste, reduction of stormwater runoff, and waterfront protection. Additional components include practices such as landscape planning and design, soil analysis, the appropriate use of solid waste compost, minimizing the use of irrigation, and proper maintenance. 118 S. 720.3075(4), F.S. 119 S. 163.04(2), F.S. STORAGE NAME: h1645.ECC PAGE: 20 DATE: 1/27/2024 Artificial turf; Boats; Flags; and Recreational vehicles. Effect of the Bill Fueling Services on Florida’s Turnpike System The bill requires DOT, if it has a preexisting contract or license for the sale of motor fuel or charging services at a service station along the turnpike, to offer potential access to vendors of alternative motor vehicle fuels and repowering stations along the turnpike system, including, but not limited to: Hydrogen; Compressed natural gas; and Liquefied natural gas. The bill allows vendors of hydrogen, compressed natural gas, and liquefied natural gas to have the opportunity to place fueling stations along the turnpike without being preempted by previously entered contracts or licenses with established motor fuel or charging service vendors. As consumer demand for these additional fueling options grows, the bill may provide turnpike users with access to these options. Vendors of hydrogen, compressed natural gas, and liquefied natural gas will not be required to pay any commercial tax imposed under s. 212.032, F.S. Prohibition of CDD Energy Use Restrictions The bill provides that development district resolutions, ordinances, rules, codes, or policies, may not take any action that restricts or prohibits, or has the effect of restricting or prohibiting, certain types or fuel sources of energy production which may be used, delivered, converted, or supplied by the following entities to serve customers that these entities are authorized to serve: Investor-owned electric utilities; Municipal electric utilities; Rural electric cooperatives; Entities formed by interlocal agreement to generate, sell, and transmit electrical energy; Investor-owned gas utilities; Gas districts; Municipal natural gas utilities; Natural gas transmission companies; and Certain propane dealers, dispensers, and gas cylinder exchange operators. The bill also provides that development district resolutions, ordinances, rules, codes, or policies, may not take any action that restricts or prohibits, or have the effect of restricting or prohibiting, the use of any appliance, 121 including a stove or grill, which uses the types or fuel source of energy production which may be used, delivered, converted, or supplied by the entities listed above. Prohibition of HOA Energy Use Restrictions The bill provides that HOA documents, including declarations of covenants, articles of incorporation, or bylaws, may not preclude the types or fuel sources of energy production which may be used, delivered, converted, or supplied by the following entities to customer within the HOA that these entities are authorized to serve: Investor-owned electric utilities; 120 S. 720.3045, F.S. 121 The bill defines the term “appliance” as a device or apparatus manufactured and designed to use energy and for which the Florida Building Code or the Florida Fire Prevention Code provides specific requirements. STORAGE NAME: h1645.ECC PAGE: 21 DATE: 1/27/2024 Municipal electric utilities; Rural electric cooperatives; Entities formed by interlocal agreement to generate, sell, and transmit electrical energy; Investor-owned gas utilities; Gas districts; Municipal natural gas utilities; Natural gas transmission companies; and Certain propane dealers, dispensers, and gas cylinder exchange operators. The bill also provides that HOA declarations of covenants, articles of incorporation, or bylaws may not preclude, the use of any appliance, 122 including a stove or grill, which uses the types or fuel source of energy production which may be used, delivered, converted, or supplied by the entities listed above. EV Batteries (Sections 3 and 4) Present Situation EV Battery Recycling Industry analysts predict that at least 145 million EVs will be on the road by 2030. 123 EVs run off of large-scale lithium-ion batteries in which a main pack holds several modules, each of which is constructed from numerous smaller cells. 124 Scientists and policy-makers are working to ensure that EV batteries being sold today can be recycled in 2030 and beyond, when thousands of batteries will reach the end of their lives every day. 125 Certain EV battery components are easy to recycle, however, breaking down the cells and purifying the recyclable elements is more difficult. Despite this difficulty, the EV battery recycling business is growing, with dozens of companies like Redwood Materials starting up in various parts of the battery recycling industry. 126 Recycled elements derived from old EV batteries are also attractive because U.S. auto manufacturers can purchase elements for new EV batteries directly from recyclers in the U.S. instead of importing these elements from other countries. To encourage EV battery recycling, the state of California partnered with Redwood Materials and large auto manufacturers to help source EV batteries for recycling. 127 Further, the 2022 Inflation Reduction Act includes the Advanced Manufacturing Production Credit, which grants 10 years’ worth of tax credits for the domestic manufacturing of battery cells and modules, creating a larger domestic market for EV battery materials. 128 Effect of the Bill EV Battery Deposit Program 122 The bill defines the term “appliance” as a device or apparatus manufactured and designed to use energy and for which the Florida Building Code or the Florida Fire Prevention Code provides specific requirements. 123 Ian Morse, American Association for the Advancement of Science, A Dead Battery Dilemma (May 20, 2021), https://www.science.org/content/article/millions-electric-cars-are-coming-what-happens-all-dead-batteries (last visited Jan. 22, 2024). 124 Id. 125 Id. 126 John Voelcker, Car and Driver, Everything You Need to Know about EV Battery Disposal (Jun. 10, 2023), https://www.caranddriver.com/features/a44022888/electric-car-battery-recycling/ (last visited Jan. 22, 2024). 127 Redwood Materials, One year update: Redwood’s California EV Battery Recycling Program (Mar. 2, 2023), https://www.redwoodmaterials.com/news/update-california-ev-battery-recycling-program/ (last visited Jan. 22, 2024). 128 Elizabeth Napolitano, CBS News, Domestic EV battery production is surging ahead, thanks to small clause in Inflation Reduction Act (July 25, 2023), https://www.cbsnews.com/news/electric-car-batteries-inflation-reduction-act-us- manufacturing/ (last visited Jan. 22, 2024). STORAGE NAME: h1645.ECC PAGE: 22 DATE: 1/27/2024 Effective July 1, 2025, the bill creates the Electric Vehicle Battery Deposit Program within the Department of Highway Safety and Motor Vehicles (DHSMV), directing DHSMV, in consultation with industry experts, to develop and implement the program. Under this program, each motor vehicle dealer 129 which sells, at retail, an electric vehicle not previously registered in the state and each motor vehicle repair shop 130 which sells an EV battery at retail in the state must collect a deposit on the EV battery. The deposit must be based on the EV battery’s gross capacity as measured by kilowatt hours (kWh): For an electric vehicle battery with a gross capacity less than or equal to 50 kWh, the deposit is $500. For an electric vehicle battery with a gross capacity greater than 50 kWh but less than or equal to 100 kWh, the deposit is $750. For an electric vehicle battery with a capacity greater than 100 kWh, the deposit is $1,000. The bill requires DHSMV to designate a means by which the deposit is held until it can be refunded to the titleholder of an EV when the titleholder presents proof of relinquishment or sale of the EV or EV battery to a motor vehicle dealer or motor vehicle repair shop. Titleholders must also be able to recover the deposit under to program upon providing proof of relocation to another state, sale of the electric vehicle to an out-of-state resident, or theft of the EV or EV battery. Under the bill, in order to assist with the costs associated with extinguishing an EV battery fire, a fire department that handles such a fire may claim the EV battery deposit that the titleholder would otherwise be entitled to receive. The bill requires DHSMV to prepare and submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives that: Specifies the terms of the EV Battery Deposit Program. Identifies any implementation issues. Makes recommendations on any further legislation that may be necessary. Makes recommendations on how the state may further facilitate proper electric vehicle battery disposal and recycling. Developing Energy Technologies (Sections 21 & 22) Present Situation Nuclear Technologies Historically, nuclear power generation in the United States has relied on large light water reactors (LWRs) which were first commercialized in the 1950s. 131 Following the passage of the 2005 Energy Policy Act, federal loan guarantees along with state financing mechanisms began to spur activity in nuclear reactor development throughout states. 132 This activity slowed after public sentiment turned against nuclear power due to safety concerns related to the 2011 disaster at the Fukushima Daiichi nuclear plant in Japan and after the economics of power generation changed due to falling natural gas 129 Generally, Florida law defines a motor vehicle dealer as any person engaged in the business of buying, selling, or dealing in motor vehicles or offering or displaying motor vehicles for sale at wholesale or retail, or who may service and repair motor vehicles pursuant to an agreement. See s. 320.22(1)(c), F.S. 130 Section 559.903, F.S. defines a motor vehicle repair shop as any person who, for compensation, engages or attempts to engage in the repair of motor vehicles owned by other persons and includes, but is not limited to: mobile motor vehicle repair shops, motor vehicle and recreational vehicle dealers; garages; service stations; self-employed individuals; truck stops; paint and body shops; brake, muffler, or transmission shops; and shops doing glass work. Any person who engages solely in the maintenance or repair of the coach portion of a recreational vehicle is not a motor vehicle repair shop. 131 MARK HOLT, CONG. RSCH. SERV., R45706, ADVANCED NUCLEAR REACTORS: TECHNOLOGY OVERVIEW AND CURRENT ISSUES (2023) [hereinafter CRS Report, Advanced Nuclear Reactors]. 132 Daniel Shea, Nuclear Policy in the States: A National Review, Journal of Critical Infrastructure Policy, Fall/Winter 2023, at 14-15 [hereinafter Shea, Nuclear Policy in the States]. STORAGE NAME: h1645.ECC PAGE: 23 DATE: 1/27/2024 prices. 133 However, there has been increasing interest in “advanced nuclear reactors” 134 and “small modular reactors” 135 recently. 136 Advanced nuclear reactors are believed to improve upon earlier generations of reactors in areas of: cost, safety, security, waste management, and versatility. 137 Nuclear energy is “carbon-free” as it does not directly produce carbon dioxide or other greenhouse gases. 138 Nuclear power provides more than half of the carbon-free electricity produced in the U.S. 139 Nuclear energy currently constitutes 8% of electric generating capacity in the United States, yet generates 18% of the total electricity in the country. 140 Nuclear energy generates about 13% of total electricity generation in Florida. 141 This is because most nuclear plants operate around the clock and generate at maximum capacity around 93% of the time – nearly twice the capacity factor of resources like coal and natural gas, and triple that of wind and solar. 142 State legislation related to nuclear energy has increased over the past decades. 143 These policies address different vantage points; some states have enacted policies to insulate their existing fleet of reactors from premature closure, while others have enacted policies to develop new nuclear capacity. 144 Many states have directed the conduct of studies on advanced nuclear reactors. 145 Hydrogen for Transportation Hydrogen powered vehicles use hydrogen as a fuel source and produce no harmful tailpipe emissions as they only emit water vapor and warm air. 146 Currently, hydrogen powered vehicles are only available in select markets like southern and northern California. 147 This is because California is the only state which has a hydrogen fueling infrastructure, with over 60 public stations. 148 California implemented its hydrogen fueling infrastructure with its “Hydrogen Highway Network” (Network) in 2004, which was later implemented by the legislature in 2005. The Network was designed with the desire to expand zero-emission hydrogen fuel cell electric cars by expanding California’s network of hydrogen refueling stations. 149 While hydrogen powered vehicles are environmentally 133 Id. at 15. 134 An advanced nuclear reactor is a fission reactor “with significant improvements compared to reactors operating on the date of enactment” or a reactor using nuclear fusion. 42 U.S.C § 16271(b)(1). 135 Small modular reactors are a form of advanced nuclear reactor with an electric generating capacity of 300 MW. Advanced nuclear reactors can be configured into small modular reactors. CRS Report, Advanced Nuclear Reactors, supra note 126, at 3-4. 136 Id. at Introduction. 137 CRS Report, Advanced Nuclear Reactors, supra note 126, at 3. 138 Anne White & Aaron Krol, Nuclear Energy, Climate Portal (Oct. 14, 2020), https://climate.mit.edu/explainers/nuclear- energy (last visited Jan. 13, 2024). 139 Id. 140 U.S. Energy Information Administration, U.S. energy facts explained, https://www.eia.gov/energyexplained/us-energy- facts/data-and-statistics.php (last visited Jan. 12, 2024). 141 U.S. Energy Information Administration, Florida’s electricity generation mix is changing, (Aug. 24, 2023), https://www.eia.gov/todayinenergy/detail.php?id=60221 (last visited Jan. 19, 2024). 142 Shea, Nuclear Policy in the States, supra note 28, at 16. 143 Daniel Shea, Nuclear Power and the Clean Energy Transition (Apr. 6, 2023), https://www.ncsl.org/energy/nuclear- power-and-the-clean-energy-transition (last visited Jan. 13, 2024) (noting an increase from 74 bills considered in 2016 to more than 160 bills considered in 2022 in relation to nuclear energy). 144 Id. 145 See e.g., MICH. COMP. LAWS § 460.10hh (2022); Montana Senate Joint Resolution 3 (2021); Penn. HR 238 (2022). 146 United States Department of Energy, Fuel Cell Electric Vehicles, https://afdc.energy.gov/vehicles/fuel_cell.html (last visited Jan. 13, 2024). 147 United States Department of Energy, Hydrogen Fuel Cell Electric Vehicle Availability, https://afdc.energy.gov/vehicles/fuel_cell_availability.html (last visited Jan. 13, 2024). 148 United States Department of Energy, Hydrogen Fueling Station Locations by State, https://afdc.energy.gov/data/10370 (last visited Jan. 13, 2024). 149 California Energy Commission, Hydrogen Vehicles & Refueling Infrastructure, https://www.energy.ca.gov/programs- and-topics/programs/clean-transportation-program/clean-transportation-funding-areas-1 (last visited Jan. 13, 2014). STORAGE NAME: h1645.ECC PAGE: 24 DATE: 1/27/2024 beneficial, issues arise from the fueling infrastructure. Such issues, made apparent by the Network, include 150 : Vehicles becoming stranded because of lack of fueling stations; Frequent station malfunctions/shortages; and High state subsidies per fueling station. In October 2023, the U.S. Department of Energy announced $7 billion in federal funding under the Bipartisan Infrastructure Law to fund seven Regional Clean Hydrogen Hubs. The purpose of these investments is to “accelerate the commercial-scale deployment of clean hydrogen helping to generate clean, dispatchable power, create a new form of energy storage, and decarbonize heavy industry and transportation.” 151 Effect of the Bill Evaluation of Advanced Nuclear Technologies The bill requires the PSC to study and evaluate the technical and economic feasibility of using advanced nuclear power technologies, including SMRs, to meet the electrical power needs of the state. The bill also requires the PSC to research means to encourage installation and use of nuclear technologies at military installations in the state. By January 1, 2025, the PSC must prepare and submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing its findings and recommendations for potential legislative or administrative actions that may enhance the use of advanced nuclear technologies in a manner consistent with the state energy policy goals established by the bill. Evaluation of Hydrogen Fueling Infrastructure The bill requires DOT, along with DACS, to study and evaluate the potential development of hydrogen fueling infrastructure, including fueling stations, to support hydrogen-powered vehicles that use the state highway system. By January 1, 2025, DOT must prepare and submit a report to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing its findings and any recommendations for potential legislative or administrative actions concerning the development of hydrogen fueling infrastructure in manner consistent with the state energy policy goals established by the bill. B. SECTION DIRECTORY: Section 1. Creates s. 163.3210, F.S., relating to natural gas resiliency and reliability infrastructure. Section 2. Amends s. 286.29, F.S., relating to energy guidelines for public business. Section 3. Creates s. 320.97, F.S., relating to an electric vehicle battery deposit program. Section 4. Directs the Department of Highway Safety and Motor Vehicles to prepare and submit a report. Section 5. Amends s. 338.234, F.S., relating to granting concessions or selling along the turnpike system; immunity from taxation. Section 6. Amends s. 366.032, F.S., relating to preemptions over utility service restrictions. 150 Evan Halper, Is California’s ‘Hydrogen Highway’ a road to nowhere?, L.A. Times, Aug. 10, 2021. 151 U.S. DOE, Office of Clean Energy Demonstrations, Regional Clean Hydrogen Hubs Selections for Award Negotiations, https://www.energy.gov/oced/regional-clean-hydrogen-hubs-selections-award-negotiations (last visited Jan. 26, 2024). STORAGE NAME: h1645.ECC PAGE: 25 DATE: 1/27/2024 Section 7. Amends s. 366.04, F.S., relating to jurisdiction of the Public Service Commission. Section 8. Creates s. 366.057, F.S., relating to retirement of electric power plants. Section 9. Amends s. 366.94, F.S., relating to electric vehicle charging. Section 10. Amends s. 377.601, F.S., relating to legislative intent. Section 11. Amends s. 377.6015, F.S., relating to the Department of Agriculture and Consumer Services; powers and duties. Section 12. Amends s. 377.703, F.S., relating to additional functions of the Department of Agriculture and Consumer Services. Section 13. Repeals energy-related grants programs. Section 14. Provides construction. Section 15. Amends s. 288.9606, F.S., relating to issue of revenue bonds. Section 16. Amends s. 380.0651, F.S., relating to statewide guidelines, standards, and exemptions. Section 17. Amends s. 403.9405, F.S. relating to applicability; certification; exemption; notice of intent under the Natural Gas Transmission Pipeline Siting Act. Section 18. Amends s. 720.3075, F.S., relating to prohibited clauses in association documents. Section 19. Directs the Public Service Commission to develop smart grid policies. Section 20. Directs the Public Service Commission to conduct a security and resiliency assessment. Section 21. Directs the Public Service Commission to study and evaluate advanced nuclear technologies. Section 22. Directs the Department of Transportation to study and evaluate hydrogen fueling infrastructure. II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT A. FISCAL IMPACT ON STATE GOVERNMENT: 1. Revenues: None. 2. Expenditures: The bill may have a negative impact on state government expenditures because it imposes the following new requirements for specified state agencies, which may require the expenditure of resources: PSC review of certain power plant retirements, including provision of support to the Attorney General in certain circumstances; PSC development of smart grid policies; PSC assessment of the security and resiliency of the state's electric grid and natural gas facilities; DMS development of a Florida Humane Preferred Energy Products List; DOT provision of potential access to vendors of certain alternative motor vehicle fuels and repowering stations along the turnpike system; STORAGE NAME: h1645.ECC PAGE: 26 DATE: 1/27/2024 DHSMV development of an EV Battery Deposit Program and related reporting; PSC study and evaluation of advanced nuclear power technologies; and DOT study and evaluation of the potential development of hydrogen fueling infrastructure. In some cases, affected agencies may be able to satisfy all or some of these requirements with existing resources. Further, the affected agencies may see expenditures offset to some degree by potential savings, and other agencies may see reduced expenditures, related to: Elimination of certain state purchasing requirements; and Expansion of the types of intrastate natural gas pipelines that are exempt from siting under the Natural Gas Transmission Pipeline Siting Act. The impact of requiring state agencies to purchase certain energy-related items from a new Florida Humane Preferred Energy Products List, as required by the bill, is indeterminate. B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 1. Revenues: None. 2. Expenditures: The impact of requiring political subdivisions of the state to purchase certain energy-related items from a new Florida Humane Preferred Energy Products List, as required by the bill, is indeterminate. C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: The bill refocuses state energy policy on promoting and ensuring a cost-effective, reliable, resilient, safe, diverse, and U.S. sourced energy supply and makes specific changes in law to meet these policy goals. The bill also attempts to streamline certain regulatory requirements to strengthen the energy grid, increase energy-related modernization to respond to changing market forces, and increase market-based policies within Florida’s various energy sectors. To the extent these changes succeed, there will be direct positive impacts on the economic well-being of Florida’s businesses and consumers. D. FISCAL COMMENTS: None. III. COMMENTS A. CONSTITUTIONAL ISSUES: 1. Applicability of Municipality/County Mandates Provision: Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take action requiring the expenditures of funds; reduce the authority that counties or municipalities have to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or municipalities. 2. Other: None. B. RULE-MAKING AUTHORITY: The bill authorizes DHSMV to adopt rules to implement an EV Battery Deposit Program. C. DRAFTING ISSUES OR OTHER COMMENTS: STORAGE NAME: h1645.ECC PAGE: 27 DATE: 1/27/2024 The bill requires DMS, in developing a Florida Humane Preferred Energy Products List, to assess products currently available for purchase under state term contracts that contain or consist of an energy storage device with a capacity of greater than one kilowatt or that contain or consist of an energy generation device with a capacity of greater than 500 kilowatts. These capacity measures should be shown in kilowatt-hours. The bill requires the PSC to submit a report containing proposed smart grid policies by January 1, 2024. This date is erroneous, as it has already passed, and should be amended. IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES Not applicable.