The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Regulated Industries
BILL: CS/SB 1624
INTRODUCER: Senator Collins
SUBJECT: Energy Resources
DATE: January 31, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Schrader Imhof RI CS/Fav
2. AEG
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1624 amends several sections of Florida law and creates new statutory provisions relating
to energy resources. In summary, the bill:
Creates limitations on local government regulation of natural gas resiliency and reliability
infrastructure;
Revises energy guidelines for public businesses, deleting requirements relating to the Florida
Climate-Friendly Preferred Products List, and state vehicle fuel efficiency.
Creates a provision requiring the Department of Agriculture and Consumer Services (DACS)
to develop a Florida Humane Preferred Products List, and requiring state agencies and
political subdivisions to consult the list when procuring certain energy products.
Prohibits the Florida Department of Transportation (FDOT) from assigning or transferring its
permitting rights across any transportation right-of-way operated by the FDOT to a third
party or governmental entity that does not operate the transportation right-of-way without
prior approval of the Legislature.
Prohibits the FDOT and local government entities from requiring a utility within a public
road operated by the authority to be relocated on behalf of any other third-party or
governmental agency project related to a separate public or private road or transportation
corridor.
Adds “development districts” to a provision that prohibits a municipality, county, special
district, or other political subdivision of the state from enacting or enforcing a resolution,
ordinance, rule, code, or policy or taking any action that restricts or prohibits or has the effect
of restricting or prohibiting the types or fuel sources of energy production which may be
REVISED: BILL: CS/SB 1624 Page 2
used, delivered, converted, or supplied by utilities, gas districts, natural gas transmission
companies, and certain liquefied petroleum gas dealers, dispensers, and cylinder exchange
operators.
Adds “development districts” to a provision that prohibits a municipality, county, special
district, or other political subdivision of the state from restricting or prohibiting the use of an
appliance using the fuels or energy types supplied by the entities above.
Requires the Public Service Commission (PSC) to create targeted storm reserve amounts for
public utilities.
Authorizes the PSC to establish an experimental mechanism to facilitate energy
infrastructure investment.
Permits the PSC to approve voluntary public utility programs for residential, customer-
specific electric vehicle charging if the PSC determines that the rates and rate structure of a
proposed program would not adversely impact the public utility’s general body of ratepayers.
Requires the PSC to conduct an annual proceeding to determine prudently incurred natural
gas facilities relocation costs for cost recovery by natural gas public utilities.
Substantially revises legislative intent as it pertains to part II, of ch. 377, F.S., which provides
energy resource planning and development policies for Florida. The revisions also provide
updated energy policy goals and state policies as they relate to energy resource planning and
development.
Eliminates a requirement that the DACS, when analyzing the energy data collected and
preparing long-range forecasts of energy supply and demand, forecasts contain plans for the
development of renewable energy resources and reduction in dependence on depletable
energy resources, particularly oil and natural gas. Instead, such forecasts must contain an
analysis of the extent to which domestic energy resources, including renewable energy
sources, are being utilized in the state. It also revises certain related considerations and
assessments.
Repeals:
o Sections 377.801-804, F.S., providing the Florida Energy and Climate Protection Act;
o Section 377.808, F.S., providing the Florida Green Governments Grant Act;
o Section 377.809, F.S., providing the Energy Economic Zone Pilot Program; and
o Section 377.816, F.S., providing a program operated by the Office of Energy within the
DACS for allocating or reallocating the qualified energy conservation bond volume
limitation provided by 26 U.S.C. s. 54D.
Provides procedures for handling existing applications and contracts relating to the above
repealed programs.
Revises a current provision that the Natural Gas Transmission Pipeline Siting Act does not
apply to natural gas transmission pipelines which are less than 15 miles in length or which do
not cross a county line, unless the applicant has elected to apply for certification of that
pipeline. The bill increases the 15 mile limit for non-applicability to 100 miles.
Directs the Florida Department of Commerce (FDC) to expand eligibility for the Low-
Income Energy Assistance Program (LIHEAP) to persons in certain federal disability
programs.
Directs the FDC to develop a process for automated LIHEAP payments to home energy
suppliers.
Prohibits homeowners associations from disallowing certain fuel and energy production
types in their governing documents. BILL: CS/SB 1624 Page 3
Directs 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. The provision
also requires the PSC to submit a report to the Legislature.
Directs the PSC to study and evaluate the technical and economic feasibility of using
advanced nuclear power technologies, including small modular reactors (SMRs), to meet the
state’s electrical power needs, and research means to encourage and foster the installation
and use of such technologies at military installations in the state. The provision also requires
the PSC to submit a report to the Governor, President of the Senate, and Speaker of the
House of Representatives.
Directs the FDOT, in consultation with the Office of Energy within the 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. The
provision also requires the FDOT to the Governor, President of the Senate, and Speaker of
the House of Representatives.
Makes conforming changes.
Except as expressly provided, the bill takes effect July 1, 2024.
II. Present Situation:
Disposal of Real Property Acquired for Transportation Purposes
The Florida Department of Transportation (FDOT) acquires land throughout the state to utilize
for transportation facilities
1
and secure rights-of-way through purchase, lease, exchange,
donation, or other types of acquisition.
2
The FDOT is authorized to convey acquired property it
determines not to be needed for the construction, operation, and maintenance of a transportation
facility.
3
Generally, the FDOT may dispose of the property through negotiations, sealed competitive bids,
auctions, or any other means the FDOT deems to be in its best interest.
4
A sale of unneeded
property may not occur at a price less than the FDOT’s current estimate of value except that:
If the property has been donated to the state for transportation purposes and a transportation
facility has not been constructed for at least 5 years, plans have not been prepared for the
construction of such facility, and the property is not located in a transportation corridor, the
governmental entity may authorize reconveyance of the donated property for no
consideration to the original donor or the donor’s heirs, successors, assigns, or
representatives.
5
1
“Transportation facility” means any means for the transportation of people or property from place to place which is
constructed, operated, or maintained in whole or in part from public funds. The term includes the property or property rights,
both real and personal, which have been or may be established by public bodies for the transportation of people or property
from place to place. See s. 334.03(30), F.S.
2
Section 337.25(1), F.S.
3
Section 337.25(4), F.S.
4
Id.
5
Section 337.25(4)(a), F.S. BILL: CS/SB 1624 Page 4
If the property is to be used for a public purpose, including, but not limited to, affordable
housing as provided in ss. 125.379 and 166.0451, F.S., the property may be conveyed
without consideration to a governmental entity.
6
If the property was originally acquired specifically to provide replacement housing for
persons displaced by transportation projects, the FDOT may negotiate for the sale of such
property as replacement housing.
7
If the FDOT determines the property requires significant costs to be incurred or that
continued ownership of the property exposes the FDOT to significant liability risks, the
FDOT may use the projected maintenance costs over the next ten years to offset the
property’s value in establishing a value for disposal of the property, even if that value is
zero.
8
If, at the discretion of the FDOT, a sale to a person other than an abutting property owner
would be inequitable, the property may be sold to the abutting owner for the FDOT’s current
estimate of value.
Payment for Moving or Removing Utilities and Exceptions
Section 337.403(1), F.S., requires utilities to bear the cost of relocating utility facilities placed
upon, under, over, or within the right-of-way limits of any public road or publicly owned rail
corridor which is found by the authority
9
to be unreasonably interfering in any way with the
convenient, safe, or continuous use, or the maintenance, improvement, extension, or expansion,
of such public road or publicly owned rail corridor. Utility owners, upon 30 days’ notice, must
eliminate the unreasonable interference within a reasonable time or an agreed time, at their own
expense. Numerous exceptions are provided to this provision, and are located in
s. 337.403(1)(a)-(j), F.S. The requirements of s. 337.403(1), F.S., apply even if the utility facility
is within a public utility easement and the utility has a franchise agreement with the authority,
absent some other agreement to the contrary regarding costs of relocation.
10
Renewable Energy
Section 366.91, F.S., establishes a number of renewable policies for the state. The purpose of
these policies, as established in statute, states that it is in the public interest to promote the
development of renewable energy resources in this state.
11
Further, the statute is intended to
encourage fuel diversification to meet Florida’s growing dependency on natural gas for electric
production, minimize the volatility of fuel costs, encourages investment within the state, improve
environmental conditions, and make Florida a leader in new and innovative technologies.
12
The section defines “renewable energy” as:
6
Section 337.25(4)(b), F.S.
7
Section 337.25(4)(c), F.S.
8
Section 337.25(4)(d), F.S.
9
As used in ss. 337.401-337.404, F.S., “the authority” means the FDOT and local government entities.
Section 337.401(1)(a), F.S.
10
Lee County Electric Coop., Inc. v. City of Cape Coral, 159 So. 3d 126, 130 (Fla. 2d DCA 2014).
11
Section 366.91(1), F.S
12
Id. BILL: CS/SB 1624 Page 5
[E]lectrical energy produced from a method that uses one or more of the following
fuels or energy sources: hydrogen produced or resulting from sources other than fossil
fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and
hydroelectric power. The term includes the alternative energy resource, waste heat,
from sulfuric acid manufacturing operations and electrical energy produced using
pipeline-quality synthetic gas produced from waste petroleum coke with carbon
capture and sequestration.
13
The section defines “biogas” as “a mixture of gases produced by the biological
decomposition of organic materials which is largely comprised of carbon dioxide,
hydrocarbons, and methane gas,”
14
and “biomass” as “a power source that is comprised
of, but not limited to, combustible residues or gases from forest products manufacturing,
waste, byproducts, or products from agricultural and orchard crops, waste or coproducts
from livestock and poultry operations, waste or byproducts from food processing, urban
wood waste, municipal solid waste, municipal liquid waste treatment operations, and
landfill gas.”
15
Biofuels
Unlike other renewable energy sources, biomass can be converted directly into a liquid fuel.
These fuels, called “biofuels” can be used for transportation fuel and other energy uses. The most
common types of biofuels currently in use are ethanol and biodiesel.
16
Ethanol is made from various plant material and is an alcohol blending agent mixed with
traditional gasoline to reduce emissions. The most common type is E10 (10 percent ethanol and
90 percent gasoline) and it is approved for use in most conventional gasoline powered engines.
Some vehicles, called flexible fuel vehicles, are designed to run on E15 (15 percent ethanol and
85 percent gasoline). Approximately 97 percent of gasoline sold in the United States has some
amount of ethanol in it. The most common method of producing ethanol is through fermentation,
where microorganisms metabolize plant sugars to produce ethanol.
17
Biodiesel differs from ethanol in that it is meant as a cleaner-burning replacement for
conventional (i.e. petroleum-based) diesel fuel. It is derived, generally, from new and used
vegetable oils and animal fats. Biodiesel is produced by combining alcohol with fats.
18
Biodiesel
is generally blended with petroleum-based diesel for consumption as a vehicle fuel.
19
Renewable diesel fuel is a growing industry. The fuel, chemically similar to petroleum-based
diesel fuel, can be used as a “drop-in” replacement for petroleum-based diesel fuel and can be
13
Section 366.91(2)(e), F.S.
14
Section 366.91(2)(a), F.S.
15
Section 366.91(2)(b), F.S.
16
United States Department of Energy, Biofuel Basics, https://www.energy.gov/eere/bioenergy/biofuel-
basics#:~:text=The%20two%20most%20common%20types,first%20generation%20of%20biofuel%20technology (last
visited Jan. 24, 2024).
17
Id.
18
Id.
19
United States Energy Information Administration, Biofuels explained, Jul. 19. 2022,
https://www.eia.gov/energyexplained/biofuels/ (last visited Jan. 24, 2024). BILL: CS/SB 1624 Page 6
seamlessly blended, transported, and even co-processed with petroleum-based diesel.
20
The
production method for renewable diesel fuel is more complex than biodiesel and most is
produced by hydrogenation of triglycerides, a similar process to that used for desulfurization of
petroleum diesel. Other methods can also be used for renewable diesel production, including
gasification and pyrolysis.
21
Other biofuels, including renewable heating oil, renewable jet fuel (sustainable aviation fuel,
alternative jet fuel, biojet), renewable naphtha, and renewable gasoline are also currently in
various stages of development and commercial implementation.
22
Natural Gas and Renewable Natural Gas
Natural gas is a fossil energy source which forms beneath the earth’s surface. Natural gas
contains many different compounds, the largest of which is methane.
23
Conventional natural gas
is primarily extracted from subsurface porous rock reservoirs via gas and oil well drilling and
hydraulic fracturing, commonly referred to as “fracking.” The term renewable natural gas (RNG)
refers to biogas that has been upgraded to use in place of fossil fuel natural gas (i.e. conventional
natural gas).
24
Section 366.91, F.S., identifies sources for producing RNG as a potential source of renewable
energy.
25
The section specifically defines renewable natural gas as anaerobically generated
biogas, landfill gas, or wastewater treatment gas refined to a methane content of 90 percent or
greater. Under the definition, such gas may be used as a transportation fuel or for electric
generation, or is of a quality capable of being injected into a natural gas pipeline.
Biogas used to produce RNG comes from various sources, including municipal solid waste
landfills, digesters at water resource recovery facilities, livestock farms, food production
facilities, and organic waste management operations.
26
Raw biogas has a methane content
between 45 and 65 percent.
27
Once biogas is captured, it is treated in a process called
conditioning or upgrading, which involves the removal of water, carbon dioxide, hydrogen
sulfide, and other trace elements. After this process, the nitrogen and oxygen content is reduced
20
United States Energy Information Administration. Biofuels explained: Biodiesel, renewable diesel, and other biofuels, Jul.
29, 2022, https://www.eia.gov/energyexplained/biofuels/biodiesel-rd-other-basics.php, (last visited Jan. 24, 2024).
21
Id.
22
United States Energy Information Administration, Biofuels explained, supra note 19.
23
United States Energy Information Administration, Natural gas explained, Dec. 27, 2022,
https://www.eia.gov/energyexplained/natural-gas/ (last visited Jan. 25, 2024)
24
Environmental Protection Agency, Landfill Methane Outreach Program (LMOP): Renewable Natural Gas,
https://www.epa.gov/lmop/renewable-natural-gas (last visited Jan. 25, 2024).
25
Section 366.91(2)(e), F.S., defines “renewable energy, in part, as energy produced from biomass. Section 366.91(2)(b),
F.S., defines “biomass” in part, as “a power source that is comprised of, but not limited to, combustible residues or gases
from…waste, byproducts, or products from agricultural and orchard crops, waste or coproducts from livestock and poultry
operations, waste or byproducts from food processing, urban wood waste, municipal solid waste, municipal liquid waste
treatment operations, and landfill gas.” RNG would be such a combustible gas.
26
Environmental Protection Agency, supra note 24.
27
Id. BILL: CS/SB 1624 Page 7
and the RNG has a methane content comparable to natural gas and is thus a suitable energy
source in applications that require pipeline-quality gas, such as vehicle applications.
28
RNG meeting certain standards, qualifies as an advanced biofuel under the Federal Renewable
Fuel Standard Program.
29
This program was enacted by Congress in order to reduce greenhouse
gas emissions by reducing reliance on imported oil and expanding the nation’s renewable fuels
sector.
30
Hydrogen Fuel
The production of hydrogen involves the separation of the element from other elements in which
it occurs. While there are many different sources of hydrogen and methods for producing it as a
fuel, the most common methods used currently are steam-methane reforming and electrolysis.
31
Through either method, hydrogen is not an energy source, per se, since it is produced using other
energy sources. Rather, produced hydrogen is an energy carrier.
32
Steam-Methane Reforming
The most-widely used method for hydrogen production, which accounts for nearly all
commercially-produced hydrogen in the United States, is steam-methane reforming. With steam-
methane reforming, hydrogen atoms are separated from carbon atoms in methane using high
temperature (1,300-1,800 degrees Fahrenheit) under 3-25 bar pressure
33
in the presence of a
catalyst. The end-result of this process is the production of hydrogen, carbon-monoxide, and a
small amount of carbon dioxide.
34
For industrial facilities and petroleum refineries, natural gas is the typical base material from
which to produce hydrogen by steam-methane reforming. Biogas and landfill gas is also a base
material to produce hydrogen used by several fuel cell power plants in the United States.
28
United States Department of Energy, Renewable Natural Gas Production,
https://afdc.energy.gov/fuels/natural_gas_renewable.html (last visited Jan. 25, 2024).
29
United States Department of Energy, Renewable Fuel Standard,
https://afdc.energy.gov/laws/RFS#:~:text=The%20Renewable%20Fuel%20Standard%20(RFS,Act%20of%202007%20(EIS
A) (last visited: Jan. 25, 2024).
30
Environmental Protection Agency, Renewable Fuel Standard Program, https://www.epa.gov/renewable-fuel-standard-
program (last visited Jan. 25, 2024).
31
United States Energy Information Administration, Hydrogen Explained: Production of Hydrogen, Jan. 21, 2022,
https://www.eia.gov/energyexplained/hydrogen/production-of-
hydrogen.php#:~:text=The%20two%20most%20common%20methods,electrolysis%20(splitting%20water%20with%20electr
icity.(last visited Jan. 25, 2024)
32
International Renewable Energy Agency, Hydrogen, available at https://www.irena.org/Energy-
Transition/Technology/Hydrogen (last visited Jan. 25, 2024).
33
One bar equals 14.5 pounds per square inch of pressure. For comparison, at sea level, the average air pressure on Earth is
1.0132 bars. National Oceanic and Atmospheric Administration, Air Pressure,
https://www.noaa.gov/jetstream/atmosphere/air-
pressure#:~:text=The%20standard%20pressure%20at%20sea,the%20atmosphere%20decreases%20with%20height (last
visited Jan. 25, 2024).
34
United States Energy Information Administration, Hydrogen Explained: Production of Hydrogen, supra note 31. BILL: CS/SB 1624 Page 8
Electrolysis
Electrolysis, in the sense of hydrogen production, means a process where hydrogen is split from
water using an electric current. On a large, commercial scale, the process may be referred to as
power-to-gas, where power is electricity and gas is hydrogen.
35
This hydrogen is then captured
and used or sold as an end product or as a fuel to generate electricity.
36
The electrolysis process
itself is emission-free and has no by-products other than hydrogen and oxygen. However, the
energy source used to power the electrolysis (which could be from renewables, nuclear, or fossil
fuels) may or may not be emission-free or have other byproducts.
Hydrogen Categories
Recently, to distinguish between the energy sources used to power hydrogen production,
hydrogen producers, marketers, government agencies, and others have used a color-coded
system. The nine commonly used color categories are detailed below:
Green: Hydrogen produced by water electrolysis and employing renewable electricity as the
fuel source. It is so called because the process itself does not produce emissions.
Blue: Hydrogen produced from fossil fuels, but the carbon dioxide produced by the process
is sequestered underground. Thus, the process is considered carbon neutral.
Gray: Hydrogen produced by steam-methane reforming and the emissions produced from the
burning of fossil fuels in the method are released into the atmosphere.
Black or Brown: Hydrogen produced from the burning of coal, “black” being from the
burning of bituminous coal and “brown” being from the burning of lignite coal. A
comparatively large amount of carbon dioxide and carbon monoxide is released into the
atmosphere with this type of production.
Turquoise: This now experimental method of hydrogen production involves the thermal
splitting of methane through pyrolysis. Though carbon is formed in this process, it is in a
solid state that can be stored and not a carbon dioxide gas.
Purple: Hydrogen made using nuclear power and heat through the combined chemo thermal
electrolysis splitting of water.
Pink: This is the production of hydrogen through electrolysis where the energy source is
electricity from a nuclear power plant.
Red: Hydrogen produced through high-temperature catalytic splitting of water using nuclear
power thermal energy as an energy source.
White: Naturally-occurring hydrogen.
37
Transmission and Use of Hydrogen Fuel
Due to hydrogen’s low volumetric energy density, transportation, storage, and final delivery to
the point of use, it can have a significant impact on the cost of using hydrogen as a fuel carrier.
These factors can lead to inefficiencies that increase the farther hydrogen must be transported
35
Id.
36
Florida Public Service Commission, Bill Analysis for SB 1162 (Mar. 14, 2023) (on file with the Senate Regulated
Industries Committee).
37
Bulletin H2, Hydrogen Colours Codes, available at https://www.h2bulletin.com/knowledge/hydrogen-colours-codes/ (last
visited: Jan. 25, 2024). BILL: CS/SB 1624 Page 9
before reaching its end use.
38
Thus, currently, most hydrogen is produced in close proximity to
its end use.
39
However, technology is in development that may bring these costs down and allow
for easier transport and transmission of hydrogen.
40
The two typical methods for transporting hydrogen fuel currently are via pipeline or by truck
through the use of cryogenic liquid tanker trucks or gaseous tube trailers. Pipelines are most
popular in areas where demand is high and expected to remain stable or grow. Trucking of
hydrogen is used in areas with less demand.
41
Potential uses for hydrogen are in:
42
Industrial uses such as powering oil refineries and powering ammonia, methanol, and steel
production. Currently, this is the largest use, by far, for hydrogen.
Transportation, powering hydrogen-fueled vehicles.
Buildings where hydrogen can be blended into existing natural gas networks. It is possible
currently to blend small amounts of hydrogen in existing natural gas transmission systems
with little to no changes to infrastructure, equipment, and appliances.
Power generation where emerging technology is available to use hydrogen as a medium to
store renewable energy, such as solar and wind. Hydrogen and ammonia can be used in gas
turbines to increase power system flexibility, and ammonia can be used to reduce emissions
from coal-fired power plants.
Florida Public Service Commission
The Florida Public Service Commission (PSC) is an arm of the legislative branch of
government.
43
The role of the PSC is to ensure Florida’s consumers receive utility services,
including electric, natural gas, telephone, water, and wastewater, in a safe, affordable, and
reliable manner.
44
In order to do so, the PSC exercises authority over public utilities in one or
more of the following areas: rate base or economic regulation; competitive market oversight; and
monitoring of safety, reliability, and service issues.
45
Electric and Gas Utilities
The PSC monitors the safety and reliability of the electric power grid
46
and may order the
addition or repair of infrastructure as necessary.
47
The PSC has broad jurisdiction over the rates
38
United States Office of Energy Efficiency and Renewable Energy, Hydrogen Delivery, available at
https://www.energy.gov/eere/fuelcells/hydrogen-delivery (last visited: Jan. 25, 2024).
39
Florida Public Service Commission, Bill Analysis for SB 1162, supra note 36.
40
See Florida Public Service Commission, Bill Analysis for SB 1162, supra note 36, which describes potential new
technologies that can overcome the transportation and transmission cost hurdle for hydrogen.
41
United States Office of Energy Efficiency and Renewable Energy, supra note 38.
42
International Renewable Energy Agency, supra note 32.
43
Section 350.001, F.S.
44
See Florida Public Service Commission, Florida Public Service Commission Homepage, http://www.psc.state.fl.us (last
visited Jan. 25, 2024).
45
Florida Public Service Commission, About the PSC, https://www.psc.state.fl.us/about (last visited Jan. 25, 2024).
46
Section 366.04(5) and (6), F.S.
47
Section 366.05(1) and (8), F.S. BILL: CS/SB 1624 Page 10
and service of investor-owned electric and gas utilities
48
(called “public utilities” under
ch. 366, F.S.).
49
However, the PSC does not fully regulate municipal electric utilities (utilities
owned or operated on behalf of a municipality) or rural electric cooperatives. The PSC does have
jurisdiction over these types of utilities with regard to rate structure, territorial boundaries, bulk
power supply operations, and planning.
50
Municipally-owned utility rates and revenues are
regulated by their respective local governments or local utility boards. Rates and revenues for a
cooperative utility are regulated by its governing body elected by the cooperative’s membership.
Municipal Electric and Gas Utilities, and Special Gas Districts, in Florida
A municipal electric or gas utility is an electric or gas utility owned and operated by a
municipality. Chapter 366, F.S., provides the majority of electric and gas utility regulations for
Florida. While ch. 366, F.S., does not provide a definition, per se, for a “municipal utility,”
variations of this terminology and the concept of these types of utilities appear throughout the
chapter. Currently, Florida has 33 municipal electric utilities that serve over 14 percent of the
state’s electric utility customers.
51
Florida also has 27 municipally-owned gas utilities and four
special gas districts.
52
Rural Electric Cooperatives in Florida
At present, Florida has 18 rural electric cooperatives, with 16 of these cooperatives being
distribution cooperatives and two being generation and transmission cooperatives.
53
These
cooperatives operate in 57 of Florida’s 67 counties and have more than 2.7 million customers.
54
Florida rural electric cooperatives serve a large percentage of area, but have a low customer
density. Specifically, Florida cooperatives serve approximately 10 percent of Florida’s total
electric utility customers, but their service territory covers 60 percent of Florida’s total land
mass. Each cooperative is governed by a board of cooperative members elected by the
cooperative’s membership.
55
Public Electric and Gas Utilities in Florida
There are four investor-owned electric utility companies (electric IOUs) in Florida: Florida
Power & Light Company (FPL), Duke Energy Florida (Duke), Tampa Electric Company
(TECO), and Florida Public Utilities Corporation (FPUC).
56
In addition, there are eight investor-
owned natural gas utility companies (gas IOUs) in Florida: Florida City Gas, Florida Division of
48
Section 366.05, F.S.
49
Section 366.02(8), F.S.
50
Florida Public Service Commission, About the PSC, supra note 45.
51
Florida Municipal Electric Association, About Us, https://www.flpublicpower.com/about-us (last visited Jan. 25, 2024).
52
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, pg. 13, Apr. 2023 (available
at: https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/FactsAndFigures/April%202023.pdf). A “special gas district” is a dependent or
independent special district, setup pursuant to ch. 189, F.S., to provide natural gas service. Section 189.012(6), F.S., defines a
“special district” as “a unit of local government created for a special purpose, as opposed to a general purpose, which has
jurisdiction to operate within a limited geographic boundary and is created by general law, special act, local ordinance, or by
rule of the Governor and Cabinet.”
53
Florida Electric Cooperative Association, Members, https://feca.com/members/ (last visited Jan. 25, 2024).
54
Florida Electric Cooperative Association, Our History, https://feca.com/our-history/ (last visited Jan. 25, 2024).
55
Id.
56
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, supra note 52, at 5. BILL: CS/SB 1624 Page 11
Chesapeake Utilities, FPUC, FPUC-Fort Meade Division, FPUC-Indiantown Division, Peoples
Gas System, Sebring Gas System, and St. Joe Natural Gas Company. Of these eight gas IOUs,
five engage in the merchant function servicing residential, commercial, and industrial customers:
Florida City Gas, FPUC, FPUC-Fort Meade Division, Peoples Gas System, and St. Joe Natural
Gas Company. Florida Division of Chesapeake Utilities, FPUC-Indiantown Division, and
Sebring Gas System are only engaged in firm transportation service.
57
Electric IOU and Gas IOU rates and revenues are regulated by the PSC and the utilities must file
periodic earnings reports, which allow the PSC to monitor earnings levels on an ongoing basis
and adjust customer rates quickly if a company appears to be overearning.
58
Section 366.041(2), F.S., requires public utilities to provide adequate service to customers. As
compensation for fulfilling that obligation, s. 366.06, F.S., requires the PSC to allow the IOUs to
recover honestly and prudently invested costs of providing service, including investments in
infrastructure and operating expenses used to provide electric service.
59
Natural Gas Transmission
Natural gas transmission companies are regulated by the PSC under ch. 368, F.S. The term
“natural gas transmission company,” as defined in s. 368.103, F.S., “means any person owning
or operating for compensation facilities located wholly within this state for the transmission or
delivery for sale of natural gas.” The term does not include “any person that owns or operates
facilities primarily for the local distribution of natural gas or that is subject to the jurisdiction of
the Federal Energy Regulatory Commission under the Natural Gas Act, 15 U.S.C. ss. 717 et seq.,
or any municipalities or any agency thereof, or a special district created by special act to
distribute natural gas.” Section 364.104, F.S., authorizes the PSC to “fix and regulate rates and
services of natural gas transmission companies, including, without limitation, rules and
regulations for:”
Determining customers and services classifications;
Determining rate applicability; and
“Ensuring that the provision (including access to transmission) or abandonment of service by
a natural gas transmission company is not unreasonably preferential, prejudicial, or unduly
discriminatory.”
Section 368.105, F.S., provides the procedures for the PSC to set rates and services requirements
for natural gas transmission companies in Florida.
Under chapter 368, F.S., the PSC is authorized to inspect intrastate natural gas systems to ensure
compliance with rules and regulations regarding safety standards.
60
Currently, Florida has 3
major pipelines: Florida Gas Transmission Company, Gulfstream Natural Gas System, and Sabal
57
Id at 14. Firm transportation service is offered to customers under schedules or contracts which anticipate no interruption
under almost all operating conditions. See Firm transportation service, 18 CFR s. 284.7.
58
PSC, 2022 Annual Report, p. 6, (available at: https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/AnnualReports/2022.pdf) (last visited Jan. 25, 2024).
59
Id.
60
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, supra note 52, at 13. BILL: CS/SB 1624 Page 12
Trail Interstate Pipeline. The state also has two minor pipelines: Gulf South Pipeline Company
and Southern Natural Gas.
61
Experimental and Transitional Rates
Section 366.075, F.S., authorizes the PSC to approve experimental or transitional rates for the
purpose of encouraging energy conservation or efficiency. This provision is used by the PSC to
allow electric and natural gas utilities under its rate-regulatory jurisdiction to conduct limited
scope pilot programs.
Such rates must be limited in geographic area and be for a limited period of time. The PSC may
approve the area used in testing experimental rates and must specify in the order setting those
rates the area that will be affected by those rates. The PSC can extend this time period “if it
determines that further testing is necessary to fully evaluate the effectiveness of such
experimental rates”
Preemption over Utility Service Restrictions
Section 366.032, F.S., provides that “a municipality, county, special district, or other political
subdivision of the state may not enact or enforce a resolution, ordinance, rule, code, or policy or
take any action that restricts or prohibits or has the effect of restricting or prohibiting the types or
fuel sources of energy production which may be used, delivered, converted, or supplied” by the
following:
62
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
Category I liquefied petroleum gas dealers, category II liquefied petroleum gas dispensers, or
category III liquefied petroleum gas cylinder exchange operator as defined in s. 527.01, F.S.
Section 366.032(2), F.S, also prohibits (except to enforce the Florida Building Code and Florida
Fire Prevention Code) a municipality, county, special district, or other political subdivision of the
state from restricting or prohibiting the use of an appliance using the fuels or energy types used,
delivered, converted, or supplied by the entities above.
The section also provides that it acts retroactively to any provision that existed before its
enactment in 2021.
61
Id.
62
To the extent of serving the customers they are authorized to serve. BILL: CS/SB 1624 Page 13
Electric Vehicles
The U.S. Department of Energy’s Alternative Fuels Data Center (AFDC) uses the term,
“electric-drive vehicles,” as referring collectively to hybrid electric vehicles (HEV), plug-in
hybrid electric vehicles (PHEV), and all-electric vehicles (EV).
63
According to the AFDC:
HEVs are primarily powered by an internal combustion engine that runs on conventional or
alternative fuel and an electric motor using energy stored in a battery. The battery is charged
through regenerative braking and the internal combustion engine, not by plugging in to
charge.
PHEVs are powered by an internal combustion engine and an electric motor using energy
stored in a battery. They can operate in all-electric mode through a larger battery, which can
be plugged in to an electric power source to charge. Most can travel between 20 and 40 miles
on electricity alone, and then will operate solely on gasoline, similar to a conventional
hybrid.
EVs use a battery to store the electric energy that is charged by plugging the vehicle into
charging equipment. EVs always operate in all-electric mode and have typical driving ranges
from 150 to 400 miles.
64
The primary difference between an EV and a traditional internal combustion engine (ICE)
vehicle lies in their drive trains. The main components of an EV power train are its battery, a
motor, and ancillary systems. The main components of an ICE power train are its liquid fuel
storage, combustion chambers and related cooling system, transmission, and an exhaust
system.
65
For purposes of vehicle registration, Florida law currently defines the term “electric vehicle” to
mean “a motor vehicle that is powered by an electric motor that draws current from rechargeable
storage batteries, fuel cells, or other sources of electrical current.”
66
Increased interest in EVs has been driven by higher gas prices and greenhouse gas emission
concerns.
67
However, limited EV range (and the related and range anxiety
68
), limitations in
charging infrastructure, charging speed as it relates to time to refuel a traditional gasoline
vehicle, and EV cost are some of the factors negatively impacting EV adoption.
69
63
U.S. Dept. Energy, AFDC, Hybrid and Plug-In Electric Vehicles, https://afdc.energy.gov/vehicles/electric.html (last visited
Jan. 25, 2024).
64
Id.
65
Brandon S. Tracy, Cong. Research Serv., R47227, Critical Minerals in Electric Vehicle Batteries, (2022) (available at
https://crsreports.congress.gov/product/pdf/R/R47227).
66
Section 320.01(36), F.S.
67
Id.
68
Range anxiety is the feeling an EV driver has when the battery charge is low, and the usual sources of electricity are
unavailable, striking a fear of being stranded. J.D. Power, What is Range Anxiety with Electric Vehicles?, Nov. 3, 2020,
https://www.jdpower.com/cars/shopping-guides/what-is-range-anxiety-with-electric-vehicles (last visited Jan. 24, 2024).
69
EV Connect, 10 Factors That Affect Widespread EV Adoption, https://www.evconnect.com/blog/10-factors-affecting-ev-
adoption (last visited Jan. 25, 2024). BILL: CS/SB 1624 Page 14
Electric Vehicle Charging Stations
EVs need access to charging stations. For most EV users, charging starts at home or at fleet
facilities. Charging stations at other commonly-visited locations, however, such as work, public
destinations, and along roadways, can offer more flexible fueling charging opportunities. The
growth of charging stations has made longer distance travel with EVs more feasible and has
helped grow the market for EVs.
70
There are three general types of chargers:
Level 1: Level 1 chargers use a standard 120-volt home outlet (i.e. a standard wall socket).
Often EV automakers will include with the vehicle a charging cord that can plug directly into
a 120-volt outlet. These are the slowest types of chargers and, on average, provide about five
miles of driving distance per hour of charging.
Level 2: Level 2 chargers use a 240-volt outlet. Such outlets are often used for larger home
appliances with greater power needs, such as electric ovens and clothes dryers. To use such
chargers at home, homeowners may need a professional to install a 240-volt outlet in a
vehicle-accessible location and additional equipment installation may be necessary. Level 2
chargers can also be found in some public charging stations. Level two chargers, on average,
provide about 25 miles of driving distance per hour of charging.
Direct Charge Fast Chargers (DCFC): DCFC are the fastest types of chargers. These are not
typically not found in homes, but are available at public charging stations and along
roadways and highway routes. These types of chargers provide approximately 100 to 300
miles of driving for a 30-minute charge; some DCFC can charge even faster than this.
71
EV Charging in Florida
Since the current regulatory structure of electric utilities in Florida includes exclusive service
territories, the sale of electricity to retail, or end-use customers by a third party is not permitted.
72
In 2012 the Florida Legislature created an exemption for electric vehicle charging, under
s. 366.94(4), F.S., declaring that the provision of electric vehicle charging to the public by a non-
utility is not considered a retail sale of electricity under ch. 366, F.S. The rates, terms, and
conditions of EV charging by a non-utility are not subject to PSC regulation.
73
Statistics provided by the U.S. Department of Energy show that Florida has the third largest EV
charging infrastructure in the country, behind California and New York.
74
As of
January 14, 2022, Florida has the following numbers of charging infrastructure:
Station locations – 3,260
EV supply equipment ports – 9,072
Level 1 chargers - 24
70
U.S. Dept. of Energy, Developing Infrastructure to Charge Electric Vehicles,
https://afdc.energy.gov/fuels/electricity_infrastructure.html (Jan. 24, 2024).
71
Environmental Protection Agency, Plug-in Electric Vehicle Charging: The Basics,
https://www.epa.gov/greenvehicles/plug-electric-vehicle-charging-basics (Jan. 26, 2024).
72
FDOT, EV Infrastructure Master Plan (July 2021), p. 16, https://fdotwww.blob.core.windows.net/sitefinity/docs/default-
source/planning/fto/fdotevmp.pdf (last visited Jan. 25, 2024).
73
Section 366.94(1), F.S.
74
United States Department of Energy, Alternative Fuels Data Center, https://afdc.energy.gov/ (last visited Jan. 25, 2024). BILL: CS/SB 1624 Page 15
Level 2 chargers – 6,843
DCFC – 2,205
Natural Gas Transmission Pipeline Siting Act
Part VIII of Ch. 403, F.S., is the Natural Gas Transmission Pipeline Siting Act (NGTPSA), and
is Florida’s process for licensing the construction and operation of natural gas pipelines in the
state. The Federal Energy Regulatory Commission regulates interstate natural gas transmission
and reviews proposals to build interstate natural gas pipelines. The Florida Department of
Environmental Protection’s (DEP’s) role regarding pipelines is to handle in-state environmental
regulatory matters for wetlands crossings, discharge of hydrostatic test waters and other
applicable areas.
75
Under s. 403.9422, F.S., the PSC also has the responsibility to determine the
need for a proposed natural gas pipeline regulated by NGTPSA and issue certificates of need as
appropriate.
Section 403.9405(2), F.S., provides that the NGTPSA does not apply to:
Natural gas transmission pipelines which are less than 15 miles in length or which do not
cross a county line, unless the applicant has elected to apply for certification of that pipeline;
Natural gas transmission pipelines for which a certificate of public convenience and necessity
has been issued under s. 7(c) of the Natural Gas Act, 15 U.S.C. s. 717f, or a natural gas
transmission pipeline certified as an associated facility to an electrical power plant pursuant
to the Florida Electrical Power Plant Siting Act, ss. 403.501-403.518, F.S., unless the
applicant elects to apply for certification of that pipeline; and
Natural gas transmission pipelines that are owned or operated by a municipality or any
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, unless the applicant elects to
apply for certification of that pipeline.
Storm Reserves for Public Utilities
Storm reserves are a form of self-insurance used by utilities to collect in advance from ratepayers
costs to recover from storms. Such reserves are an accounting technique allowing utilities to
reduce the immediate impact of storms on ratepayers and spread them over time.
76
In Florida, the PSC allows utilities to establish storm reserve accounts and fund them according
to rule and orders of the PSC. Many storm restoration cost orders at the PSC include provisions
for impacted utilities to replenish their storm reserve accounts.
77
75
Florida Department of Environmental Protection, Natural Gas Pipeline Siting Act, https://floridadep.gov/water/siting-
coordination-office/content/natural-gas-pipeline-siting-act (last visited Jan. 24, 2024).
76
Energy South, Enabling Energy Resiliency Through a Storm Reserve Fund, https://medium.com/@EnergySouth/enabling-
energy-resiliency-through-a-storm-reserve-fund-add806aa0b59, Aug. 19, 2015 (last visited Jan. 25, 2024).
77
See, for example, In Re: Petition for Ltd. Proceeding for Recovery of Incremental Storm Restoration Costs Related to
Hurricane Idalia, by Duke Energy Florida, LLC. in Re: Petition for Ltd. Proceeding for Recovery of Incremental Storm
Restoration Costs Related to Hurricanes Elsa, Eta, Isaias, Ian, Nicole, & Tropical Storm Fred, by Duke Energy Florida,
LLC., 2023 WL 8879275 (Dec. 19, 2023); In Re: Petition for Recovery of Costs Associated with Named Tropical Sys. During
the 2018-2022 Hurricane Seasons & Replenishment of Storm Reserve, by Tampa Elec. Co., 2023 WL 8119138 (Nov. 20,
2023); and In Re: Petition for Rate Increase by Florida City Gas., 2023 WL 3966515 (June 9, 2023). BILL: CS/SB 1624 Page 16
Until 2004, the self-insurance programs of the state’s electric IOUs were adequate to cover the
costs incurred for storm restoration. However, the combined effects of Hurricanes Charley,
Frances, Ivan and Jeanne during 2004 far exceeded the amounts held by the state’s electric
IOUs.
78
After a number of proceedings regarding storm reserves and recovery, in 2007, PSC
staff “recommended rule amendments to establish a single, consistent, and uniform methodology
for determining which storm damage restoration costs can appropriately be charged to the
property damage reserve by each of the Florida IOUs.” The result were amendments to Fla.
Admin. Code R. 25-7.0143. The amendments required:
The establishment of a separate subaccount for storm related damage expenses and
accruals, the “storm damage subaccount.” The rule amendments also require use of the
Incremental Cost and Capitalization Approach (ICCA) methodology and delineate types
of expenses that are expressly allowed or prohibited from being charged to the storm
damage subaccount. The ICCA methodology is designed to prevent double recovery.
Under the ICCA, a utility only charges to the storm damage subaccount those storm
restoration costs that are not already being recovered through base rates (“incremental”
costs). For example, a utility would not be able to charge the normal base salaries of
employees working on storm restoration, but would be able to charge overtime costs
related to storm restoration activities to the storm damage subaccount.
79
Under PSC rule, the types of storm-related costs that can be charged to a storm reserve include:
Additional contract labor hired for storm restoration activities incurred in any month in
which storm damage restoration activities are conducted, that are greater than the actual
monthly average of contract labor costs charged to operation and maintenance expense for
the same month in the three previous calendar years;
Logistics for providing meals, lodging, and linens for tents and other staging areas;
Transportation of crews and other personnel for storm restoration;
Vehicles specifically rented for storm restoration activities;
Waste management costs specifically related to storm restoration activities;
Rental equipment specifically related to storm restoration activities;
Materials and supplies used to repair and restore service and facilities to pre-storm condition,
excluding those costs that normally would be charged to non-cost recovery clause operating
expenses in the absence of a storm;
Payroll and payroll-related costs for utility personnel included in storm restoration activities
incurred in any month in which storm damage restoration activities are conducted, that are
greater than the actual monthly average of payroll and payroll-related costs charged to
operation and maintenance expense for the same month in the three previous calendar years;
Fuel company and contractor vehicles used in storm restoration activities incurred in any
month in which storm damage restoration activities are conducted, that are greater than the
actual monthly average of fuel costs charged to operation and maintenance expense for the
same month in the three previous calendar years;
Public service announcements regarding key storm-related issues, such as safety and service
restoration estimates;
78
Florida Public Service Commission, Bill Analysis for SB 1548 (Jan. 30, 2024) (on file with the Senate Regulated Industries
Committee).
79
Id. BILL: CS/SB 1624 Page 17
Vegetation management expenses specifically related to storm restoration activities incurred
in any month in which storm damage restoration activities are conducted, that are greater
than the actual monthly average of vegetation management costs charged to operation and
maintenance expense for the same month in the previous three calendar years; and
Other costs or expenses not specifically identified above that are directly and solely
attributable to a storm restoration event.
80
The current storm reserves held by the state’s four electric IOUs are:
81
Utility Most recent storm
reserve amount
($ million)
FPL 220
DEF 132
TECO 56
FPUC 1.5
Nuclear Power
Nuclear power plants work, in a way, similarly to any other turbine-based power plant. In
turbine-based power plants a moving fluid—water, steam, combustion gases, or even air—
pushes blades mounted on a rotor. The force of the moving liquid spins the shaft of a generator.
That generator then converts the kinetic energy of the spinning rotor to electrical energy. Types
of turbines include steam, combustion (i.e. gas), hydroelectric, and wind.
82
Nuclear power plants work the same way, in that steam is used to spin a turbine to produce
electricity. The unique part of a nuclear power plant is how that steam is produced. In a nuclear
power plant, heat is used to make steam, and this heat is produced by a controlled fission nuclear
reaction.
83
In a traditional nuclear power plant, uranium, which has been processed into small ceramic
pellets and stacked together in a sealed metal tube (called a fuel rod), is the fuel source. Fuel rods
are bundled together (typically in bundles of more than 200 rods) to form a fuel assembly.
Reactor cores are generally made up of around 200 assemblies, depending on power level. In the
reactor, fuel rods are immersed in water, which acts as a coolant and moderator. Control rods are
then inserted into the reactor core to reduce the nuclear reaction or removed to increase the
nuclear reaction. This reaction creates heat to turn water into the steam that fuels the turbine.
There are over 400 commercial reactors worldwide, including 93 in the United States.
80
Fla. Admin. Code R. 25-7.0143(1)(e).
81
Florida Public Service Commission, Bill Analysis for SB 1548, supra note 78.
82
United States Energy Information Administration, Electricity Explained,
https://www.eia.gov/energyexplained/electricity/how-electricity-is-generated.php (last visited Jan. 25, 2024).
83
United States Department of Energy, NUCLEAR 101: How Does a Nuclear Reactor Work?,
https://www.energy.gov/ne/articles/nuclear-101-how-does-nuclear-reactor-work (last visited Jan. 25, 2024). BILL: CS/SB 1624 Page 18
Advanced Small Modular Reactors
Advanced small modular reactors (SMRs) are currently under development in the United States.
SMRs differ from traditional large nuclear power plants—which can take over a decade to build
between planning, regulatory approval, and construction—
84
in that they are made in factories
and transported to sites ready to “plug and play” upon arrival. This reduces both capital costs and
construction times. The smaller size of these reactors also makes them ideal for smaller electric
grids and other locations where a large nuclear power plant is not feasible.
85
Advanced Reactor Technologies
The Office of Nuclear Energy’s Office of Advanced of Advanced Reactor Technologies (ART)
sponsors research, development, and deployment of emerging nuclear reactor technologies.
While the technologies are varied, ART’s main areas of focus currently are:
Developing assessment methods for evaluating advanced SMR technologies and
characteristics;
Developing and testing of materials, fuels and fabrication techniques;
Resolving key regulatory issues identified by Nuclear Regulatory Commission and the
nuclear industry; and
Developing advanced instrumentation and controls and human-machine interfaces.
86
Customer-Owned Renewable Generation
Section 366.91(2)(c), F.S., defines “customer-owned renewable generation” as “an electric
generating system located on a customer’s premises that is primarily intended to offset part or all
of the customer’s electricity requirements with renewable energy.” Under the traditional utility
model, an electric utility would produce (or purchase at wholesale) energy which it, in turn,
would provide to customers to power their homes and businesses through its energy grid.
However, with the advent of technologies like electric vehicles, rooftop solar systems, battery
storage systems, and smart appliances, customers are now able to provide services to support
grid operations.
87
Customer-owned generation, such as rooftop solar and other small-scale distributed energy
resources (DERs), offer a number of benefits to both customers and utilities, including:
Reduction in reliance on the centralized grid which can increase energy resilience in times of
power-interruption in times such as extreme weather events;
Supplying affordable electricity to customers; and
84
United States Energy Information Administration, Nuclear explained, https://www.eia.gov/energyexplained/nuclear/us-
nuclear-industry.php (last visited Jan. 25, 2024).
85
United States Department of Energy, Office of Nuclear Energy, Nuclear Reactor Technologies,
https://www.energy.gov/ne/nuclear-reactor-technologies (last visited Jan.25, 2024).
86
United States Department of Energy, Office of Nuclear Energy, Advanced Reactor Technology,
https://www.energy.gov/ne/advanced-reactor-technologies (last visited Jan. 25, 2024).
87
Utility Dive, Consumers as partners: The evolving utility business model, Jan. 17, 2023,
https://www.utilitydive.com/spons/consumers-as-partners-the-evolving-utility-business-model/640195/ (last visited Jan. 24,
2024). BILL: CS/SB 1624 Page 19
Supporting decarbonization efforts.
88
Despite its benefits, DERs can present challenges for electric utilities. Many of the electric grids
today were designed, originally, for the 20
th
century where distributed energy generation was
comparatively small or non-existent.
89
The grid was traditionally designed for centralized power
generation and, primarily, a one-way power flow.
90
Greater system flexibility is needed where
inputs of power may not be as predicable or controllable by the utilities themselves. The
challenges for many grids include:
The complexity of integrating a wide variety of highly-distributed energy sources.
Variability of power production as wind and solar are not “always on” type of energy
production methods, as this can present challenges in effective energy storage and
management, reliability, and resilience.
DERs can significantly influence electricity demand patterns, sometimes unpredictably. This
can create issues with demand response and electricity load management.
The wide deployment of DERs and smart technology has raised data privacy and security
concerns as these devices integrate with the grid.
91
Smart demand response programs and load management strategies can help mitigate or reduce
these issues.
92
Climate Friendly Public Business
Section 286.29, F.S., requires state agencies to follow certain procedures to reduce greenhouse
gas emissions in conducting public business. The section requires that state agencies:
Consult with the “Florida Climate-Friendly Preferred Products List” produced by the
Department of Management Services (DMS),
93
in procuring products from state term
contracts.
94
If the price is comparable, they must procure such products.
95
Contract only with hotels or conference facilities for meetings and conferences as recognized
by the Green Lodging Program.
96,97
88
International Energy Agency, Executive summary: Unlocking the Potential of Distributed Energy Resources,
https://www.iea.org/reports/unlocking-the-potential-of-distributed-energy-resources/executive-summary (last visited Jan. 24,
2024).
89
Id.
90
Dynamic Ratings, What are Distributed Energy Resources, https://www.dynamicratings.com/solutions/smart-
infrastructure-solutions/distributed-energy-resources/ (Jan. 24, 2024).
91
Id.
92
Id.
93
The DMS keeps a Florida Climate-Friendly Preferred Products List at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_contracts_and_agreements/florida_climate_frien
dly_preferred_products_list, (last visited Jan. 25, 2024).
94
Section 286.29(1), F.S.
95
Id.
96
The Florida Department of Environmental Protection designates and recognizes lodging facilities that make a commitment
to conserve and protect Florida's natural resources through the Florida Green Lodging Program. To become designated,
facilities must conduct a thorough property assessment and implement a specified number of environmental practices in five
areas of sustainable operations: (1) communication and education with customers, employees, and the public; (2) waste
reduction, reuse and recycling; (3) water conservation; (4) energy efficiency; and (5) indoor air quality. Florida Department
of Environmental Protection, Green Lodging, https://floridadep.gov/osi/green-lodging/content/about-florida-green-lodging-
program (Last visited Jan. 25, 2024).
97
Section 286.29(2), F.S. BILL: CS/SB 1624 Page 20
Ensure vehicles meet minimum maintenance schedules shown to reduce fuel consumption
and report such compliance to the DMS.
98
When state agencies, state universities, community colleges, and local governments that
purchase vehicles under a state purchasing plan that such vehicles are selected for greatest
fuel efficiency available for a given use class when fuel economy data is available.
99
Use ethanol and biodiesel blended fuels when available.
100
Procure biofuels for fleet, to the greatest extent practicable, if the agency administers central
fueling operations.
101
Department of Agriculture and Consumer Services
The DACS is a state agency created by s. 20.14, F.S., and is headed by an elected Commissioner
of Agriculture—who is also designated by the Florida Constitution as one of the three members
of the Florida cabinet.
102
The DACS’s responsibilities are wide-ranging, however, in general,
they are to:
Support and promote Florida agriculture;
Protect the environment;
Safeguard consumers; and
Ensure the safety and wholesomeness of food.
103
Energy Planning and Development
Section 377.601, F.S., provides the legislative intent in regards to part II, of ch. 377, F.S., which
provides energy resource planning and development policies for Florida. The section states that
the legislature finds that:
[T]he 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
98
Section 286.29(3), F.S.
99
Section 286.29(4), F.S.
100
Section 286.29(5), F.S.
101
Id.
102
FLA. CONST. art. IV, s. 4.
103
Florida Department of Agriculture and Consumer Services, About Us, https://www.fdacs.gov/About-Us (last visited Jan.
25, 2024). BILL: CS/SB 1624 Page 21
energy infrastructure that increases system reliability, enhances energy independence and
diversification, stabilizes energy costs, and reduces greenhouse gas emissions.
Relatedly, s. 377.601(2), F.S., provides that it is the policy of the state to:
Develop and promote the effective use of energy, 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;
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; and
Develop and maintain energy emergency preparedness plans to minimize the effects of an
energy shortage within Florida.
Section 377.6015, F.S.,
104
provides the role of the DACS in the state’s energy resource planning
and development. The section provides that the DACS may employ staff and counsel as needed
in the performance of its duties, prosecute and defend legal actions in its own name, and form
advisory groups consisting of members of the public to provide information on specific issues.
The section also requires the DACS to:
Administer the Florida Renewable Energy and Energy-Efficient Technologies Grants
Program under s. 377.804, F.S.
Develop policy for requiring grantees to provide royalty-sharing or licensing agreements
with state government for commercialized products developed under a state grant;
Administer the Florida Green Government Grants Act pursuant to s. 377.808, F.S., and set
annual priorities for grants;
Administer the information gathering and reporting functions pursuant to ss. 377.601-
377.608, F.S.;
Administer the provisions of the Florida Energy and Climate Protection Act pursuant to ss.
377.801-377.804, F.S.;
104
Section 377.703, F.S., also provides an extensive list of the DACS functions regarding energy supply and demand. BILL: CS/SB 1624 Page 22
Advocate for energy and climate change issues and provide educational outreach and
technical assistance in cooperation with the state’s academic institutions;
Be a party in the proceedings to adopt goals and submit comments to the PSC pursuant to s.
366.82, F.S., which requires the PSC to adopt appropriate goals for increasing the efficiency
of energy consumption and increasing the development of demand-side renewable energy
systems; and
Adopt rules pursuant to ch. 120, F.S., in order to implement all powers and duties described
in the section.
Florida Renewable Energy and Green Government Programs
Part III of ch. 377, F.S., provides the state’s renewable energy and green government programs,
including the Florida Energy and Climate Protection Act in ss. 377.801-377.804, F.S.
The purpose of the Florida Energy and Climate Protection Act is to “provide incentives for
Florida’s citizens, businesses, school districts, and local governments to take action to diversify
the state’s energy supplies, reduce dependence on foreign oil, and mitigate the effects of climate
change by providing funding for activities designed to achieve these goals.” The act’s grant
programs “are intended to stimulate capital investment in and enhance the market for renewable
energy technologies and technologies intended to diversify Florida’s energy supplies, reduce
dependence on foreign oil, and combat or limit climate change impacts.”
105
The grants provided under the act, as part of the Renewable Energy and Energy-Efficient
Technologies Grants Program administered by the DACS, “provide renewable energy 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”
106
Grants under the program may be provided
to municipalities and county governments, established for-profit companies licensed to do
business in Florida, universities and colleges in the state, utilities located and operating within
the state, not-for-profit organizations, and other qualified persons as determined by the DACS.
Part III of ch. 377, F.S. also includes additional programs not under the Florida Energy and
Climate Protection Act:
The energy and conservation clearinghouse which develops a clearinghouse of information
regarding cost savings associated with various energy efficiency and conservation
measures.
107
The Florida Green Governments Grant Act which provides grants to assist local governments
in the development and implementation of programs that achieve green standards.
108
The Energy Economic Zone Pilot Program to develop “a model to help communities
cultivate green economic development, encourage renewable electric energy generation,
manufacture products that contribute to energy conservation and green jobs, and further
105
Section 377.802, F.S.
106
Section 377.804, F.S.
107
Section 377.805, F.S.
108
Section 377.808, F.S. BILL: CS/SB 1624 Page 23
implement chapter 2008-191, Laws of Florida, relative to discouraging sprawl and
developing energy-efficient land use patterns and greenhouse gas reduction strategies.”
109
The Natural Gas Fuel Fleet Vehicle Rebate Program which provides rebates for eligible
expenses relating to investments in in the conversion, purchase of a natural gas fleet
vehicles.
110
The Municipal Solid Waste-to-Energy program which provides grants to” municipal solid
waste-to-energy facilities to incentivize the production and sale of energy from municipal
solid waste-to-energy facilities while also reducing the amount of waste that would otherwise
be disposed of in a landfill.”
111
A program where the DACS is authorized to post information on its website information
about the alternative fueling stations or electric vehicle charging stations available in the
state.
112
A program operated by Office of Energy within the DACS for allocating or reallocating the
qualified energy conservation bond volume limitation provided by 26 U.S.C. s. 54D.
113
Acts of Destruction against Energy Infrastructure
The National Conference of State Legislatures (NCSL) suggests that states should be aware of
and be prepared for actual physical threats perpetrated by humans to energy infrastructure.
114
The
U.S. Department of Energy’s annual summary of Electric Emergency Incident and Disturbance
Reports indicates at least 25 reports were filed as actual physical attacks in electric utilities
perpetrated by humans in 2022, compared to six attacks in 2021.
115
Cyber-attacks are also a growing threat to energy infrastructure. The growing reliance on digital
technology to better utility infrastructure and business operations in general, has increased the
exposure of these industries to cyber threats.
116
The annual summary of Electric Emergency
Incident and Disturbance Reports indicated six cyber-related events in 2022, compared to seven
for 2021.
117
However, according to the International Energy Agency, the publicly available
information available on such cyber-attacks is limited due to under-reporting and lack of
detection, and there is evidence that attacks have been growing rapidly since 2018.
118
109
Section 377.809, F.S.
110
Section 377.810, F.S.
111
Section 377.814, F.S.
112
Section 377.815, F.S.
113
Section 377.816, F.S. Qualified energy conservation bonds (QECBs) were created in the federal 2008 Energy
Improvement and Extension Act. The purpose of the bonds were to federally fund states, territories, local governments, and
tribal governments to issue QECBs to finance renewable energy and efficiency projects. United States Department of Energy,
Qualified Energy Conservation Bonds, Aug. 2016 (available at:
https://www.energy.gov/sites/prod/files/2017/04/f34/qecbpaper0816.pdf) (last visited Jan. 24, 2024). 26 U.S.C. s. 54D was
repealed by Pub.L. 115-97, Title I, s. 13404(a), effective Dec. 22, 2017.
114
The National Conference of State Legislatures, Human-Driven Physical Threats to Energy Infrastructure, updated
May 22, 2023, available at www.ncsl.org/energy/human-driven-physical-threats-to-energy-infrastructure (last visited
December 13, 2023).
115
Id.; U.S. Department of Energy, Office of Cybersecurity, Energy Security, & Emergency Response, Electric Disturbance
Events (OE-417) Annual Summaries, available at https://www.oe.netl.doe.gov/OE417_annual_summary.aspx (last visited
December 13, 2023).
116
International Energy Agency, Cybersecurity – is the power system lagging behind?,
117
Id.
118
Id. BILL: CS/SB 1624 Page 24
Low-Income Energy Assistance Program
The Low-Income Energy Assistance Program (LIHEAP) is a federally funded program intended
to assist low income families with home heating and cooling costs. In Florida, the program is
administered by the Florida Department of Commerce (FDC), which allocates funding directly to
a network of community action agencies, also known as local agency providers.
119
The FDC summarizes the program as follows:
120
Depending on the funds available in an applicant’s county, an applicant may be able to apply
for assistance up to three times a year, but not every month.
LIHEAP may help pay natural gas or propane bills only in the winter, and only if such is the
primary source of home heating. If gas or propane is used only for purposes other than
heating, such as hot water or cooking, the LIHEAP cannot assist with the bill.
LIHEAP cannot pay for water, sewer or telephone services.
Local LIHEAP providers make the payments directly to utility companies on behalf of the
awardee.
Persons may be eligible for the program if they meet the following requirements:
Have a total income no more than 60 percent of the median income in Florida;
Are responsible for paying home heating or cooling bills;
Are a resident of Florida; and
Are a U.S. Citizen, qualified alien, or permanent resident of the U.S.
The current household income limits for LIHEAP in Florida are as follows:
121
Household Size Maximum Monthly Income Maximum Annual Income
Family of 1 $2,311.25 $27,735
Family of 2 $3,022.41 $36,269
Family of 3 $3,733.58 $44,803
Family of 4 $4,444.75 $53,337
Family of 5 $5,155.83 $61,870
Family of 6 $5,867.00 $70,404
Family of 7 $6,000.33 $72,004
Family of 8 $6,133.75 $73,605
Homeowners’ Associations
Chapter 720, F.S., provides statutory recognition to corporations that operate residential
communities in Florida as well as procedures for operating homeowners’ associations. These
119
Florida Department of Commerce, Low-Income Home Energy Assistance Program,
https://www.floridajobs.org/community-planning-and-development/community-services/low-income-home-energy-
assistance-program (last visited Jan. 25, 2024).
120
Id.
121
Id. BILL: CS/SB 1624 Page 25
laws protect the rights of association members without unduly impairing the ability of such
associations to perform their functions.
122
A “homeowners’ association” is defined as a:
123
Florida corporation responsible for the operation of a community or a
mobile home subdivision in which the voting membership is made up of
parcel owners or their agents, or a combination thereof, and in which
membership is a mandatory condition of parcel ownership, and which is
authorized to impose assessments that, if unpaid, may become a lien on
the parcel.
Unless specifically stated to the contrary in the articles of incorporation, homeowners’
associations are also governed by ch. 607, F.S., relating to for-profit corporations, or by
ch. 617, F.S., relating to not-for-profit corporations.
124
Homeowners’ associations are administered by a board of directors whose members are
elected.
125
The powers and duties of homeowners’ associations include the powers and duties
provided in ch. 720, F.S., and in the governing documents of the association, which include a
recorded declaration of covenants, bylaws, articles of incorporation, and duly-adopted
amendments to these documents.
126
The officers and members of a homeowners’ association
have a fiduciary relationship to the members who are served by the association.
127
Unlike condominium associations, homeowners’ associations are not regulated by a state agency.
Section 720.302(2), F.S., expresses the legislative intent regarding the regulation of
homeowners’ associations:
The Legislature recognizes that it is not in the best interest of
homeowners’ associations or the individual association members thereof
to create or impose a bureau or other agency of state government to
regulate the affairs of homeowners’ associations. However, in accordance
with s. 720.311, [F.S.,] the Legislature finds that homeowners’
associations and their individual members will benefit from an expedited
alternative process for resolution of election and recall disputes and presuit
mediation of other disputes involving covenant enforcement and
authorizes the department to hear, administer, and determine these
disputes as more fully set forth in this chapter. Further, the Legislature
recognizes that certain contract rights have been created for the benefit of
homeowners’ associations and members thereof before the effective date
of this act and that ss. 720.301-720.407[, F.S.], are not intended to impair
such contract rights, including, but not limited to, the rights of the
developer to complete the community as initially contemplated.
122
See s. 720.302(1), F.S.
123
Section 720.301(9), F.S.
124
Section 720.302(5), F.S.
125
See ss. 720.303 and 720.307, F.S.
126
See ss. 720.301 and 720.303, F.S.
127
Section 720.303(1), F.S. BILL: CS/SB 1624 Page 26
The Division of Florida Condominiums, Timeshares, and Mobile Homes (division) within the
Department of Business the Professional Regulation has limited regulatory authority over
homeowners’ associations. The division’s authority is limited to the arbitration of recall election
disputes.
128
The governing document of a homeowners’ association are:
129
The recorded declaration of covenants for a community and all duly adopted and recorded
amendments, supplements, and recorded exhibits thereto; and
The articles of incorporation and bylaws of the homeowners' association and any duly
adopted amendments thereto.
III. Effect of Proposed Changes:
Section 1 of the bill creates s. 163.3210, F.S., natural gas resiliency and reliability infrastructure.
The section provides that it is the intent of the legislature to maintain, encourage, and ensure
adequate and reliable fuel sources for public utilities. The section finds that resiliency and
reliability of fuel sources for public utilities is critical to Florida’s economy; the ability of the
state to recover from natural disasters; and to the health, safety, welfare, and quality of life of
Florida residents.
Under the section, a resiliency facility
130
is a permitted use in all commercial, industrial, and
manufacturing land use categories in a local government comprehensive plan and all
commercial, industrial, and manufacturing districts. Such facilities must comply with setback
and landscape criteria that would apply to other similar uses and local governments may adopt
ordinances specifying such requirements.
131
The section also provides that, after July 1, 2024, local governments may not amend their
comprehensive plans, land use maps, zoning districts, or land development regulations in a way
that would conflict with a resiliency facility’s classification as a permitted and allowable use.
Section 2 of the bill amends s. 286.29, F.S., regarding energy guidelines for public businesses.
The bill deletes a provision relating to legislative intent and the following provisions:
The Department of Management Services’ (DMS’s) Florida Climate-Friendly Preferred
Products List;
A requirement that state agencies contract only with hotels or conference facilities for
meetings and conferences as recognized by the Green Lodging Program;
A requirement that, when state agencies, state universities, community colleges, and local
governments purchase vehicles under a state purchasing plan that such vehicles are selected
for greatest fuel efficiency available for a given use class when fuel economy data is
available.
128
See s. 720.306(9)(c), F.S.
129
Section 720.301(8), F.S.
130
The section defines “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.”
131
Provided that such requirements are not more excessive than those applied to similar other uses. BILL: CS/SB 1624 Page 27
The section also creates a new provision requiring the DMS, in consultation with the Florida
Department of Commerce (FDC) and the DACS, develop a Florida Humane Preferred Products
List. In developing this list, the DMS must 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. The DMS must then identify the specific products that appear to be
largely made free from forced labor, irrespective of the age of the worker. The section defines
“forced labor” as any work performed or service rendered that is:
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
132
or otherwise performed or rendered through
oppressive child labor.
State agencies and political subdivisions in the state must, when procuring such energy products
from state term contracts, first consult the Florida Humane Preferred Energy Products List and
may not purchase or procure products not included in the list.
Section 3 amends s. 337.25, F.S., to prohibit the Florida Department of Transportation (FDOT)
from assigning or transferring its permitting rights across any transportation right-of-way
operated by the FDOT to a third party or governmental entity that does not operate the
transportation right-of-way without prior approval of the Legislature.
Section 4 amends s. 337.403, F.S., regarding the obligation for utilities to bear the cost of
relocating utility facilities placed upon, under, over, or within the right-of-way public road or
publicly owned rail corridors. This section specifies that the authority
133
may not require a utility
within a public road operated by the authority to be relocated on behalf of any other third-party
or governmental agency project related to a separate public or private road or transportation
corridor.
Section 5 amends s. 366.032, F.S., to include “development districts” in a provision that states a
municipality, county, special district, or other political subdivision of the state may not enact or
enforce a resolution, ordinance, rule, code, or policy or take any action that restricts or prohibits
or has the effect of restricting or prohibiting the types or fuel sources of energy production which
may be used, delivered, converted, or supplied by utilities, gas districts, natural gas transmission
132
Part I of ch. 450, F.S., provides the Child Labor Law for Florida.
133
As used in ss. 337.401-337.404, F.S., “the authority” means the FDOT and local government entities. Section
337.401(1)(a), F.S. BILL: CS/SB 1624 Page 28
companies, and certain liquefied petroleum gas dealers, dispensers, and cylinder exchange
operators.
The section also includes “development districts” in a provision that prohibits a municipality,
county, special district, or other political subdivision of the state from restricting or prohibiting
the use of an appliance using the fuels or energy types supplied by the energy and gas providers
above.
Section 6 amends s. 366.04, F.S., regarding the jurisdiction of the Public Service Commission
(PSC). This section requires the PSC to approve a targeted storm reserve amount to be effective
January 1, 2025, for each public utility. This storm reserve amount must be equal to 80 percent
of the approved incremental storm costs incurred for the public utility’s highest cost storm
impacting its service area over the 5 calendar years before January 2025. The incremental storm
costs must be based on the filings of the public utility with the PSC and PSC orders.
The targeted storm reserve amount established by the PSC:
May be adjusted on an annual basis for successive rolling 5-year periods;
Must be funded by an increase in base rates
134
effective Jan. 1, 2025; and
Must be designed to allow the public utility to recover the costs to fund the targeted reserve
level over a four-year period.
The base rate adjustments and accompanying tariffs must be:
Implemented by administrative approval of the PSC and employ the most recent authorized
base rate structure for the public utility;
Filed by October 15 together with the current storm reserve and supporting documentation
and the highest cost storm over the prior 5 years as reflected by orders of the PSC; and
Approved by each November 15 to take effect on January 1 of the following year.
The suspension of base rate increases and implementation of base rate adjustments relating to the
targeted storm reserve must be based on the current status of the public utility’s administratively-
determined storm reserve and be consistent with the dates above. Adjustments to base rates must
be designed to fund the public utility storm reserves. Cost recovery of such base rates may not
consider a public utility’s previous, current, or projected earnings. Revenues of such base rates
are not to be considered in the calculation of a public utility’s earnings in earnings surveillance
reports.
Section 7 amends s. 366.075, F.S., to authorize the PSC to establish an experimental mechanism
to facilitate energy infrastructure investment using the administrative proceeding structure
designated in s. 366.96, (7) and (8), F.S. In establishing this mechanism, the PSC is to consider
the intent provided in s. 366.91(1), F.S., for renewable energy
135
and use the definition of the
134
Base rates are tariffed charges, set by a utility regulator, calculated to recover a utility’s operations and maintenance
expenses plus a rate of return on the book value of its assets that are considered to be used and useful.
135
Section 366.91, F.S., provides that “it is in the public interest to promote the development of renewable energy resources
in this state. Renewable energy resources have the potential to help diversify fuel types to meet Florida’s growing
dependency on natural gas for electric production, minimize the volatility of fuel costs, encourage investment within the
state, improve environmental conditions, and make Florida a leader in new and innovative technologies.” BILL: CS/SB 1624 Page 29
term “renewable natural gas” provided in s. 366.91(2)(f).
136
The section provides that the PSC
has the discretion to determine whether to use an annual proceeding to conduct such an
experimental mechanism. The section also requires the PSC to propose a rule for adoption as
soon as practicable, but not later than October 31, 2024.
Section 8 amends s. 366.94, F.S., to allow the PSC to approve voluntary public utility programs,
to become effective on or after January 1, 2025, for residential, customer-specific electric vehicle
charging if the PSC determines that the rates and rate structure of a proposed program would not
adversely impact the public utility’s general body of ratepayers. All utility revenue received
under such programs must be credited to the public utility’s retail ratepayers. The section also
makes clear that it does not preclude cost recovery for electric vehicle charging programs
approved by the PSC before January 1, 2024.
Section 9 creates s. 366.99, F.S., authorizing natural gas public utilities to petition
137
the PSC to
annually recover prudently incurred natural gas facilities relocation costs
138
to accommodate
requirements imposed by the FDOT and local government entities. The section allows each
utility to recover such costs through a charge separate and apart from base rates—referred in the
section as the natural gas facilities relocation cost recovery clause. The section directs the PSC to
establish an annual proceeding to review these petitions where the PSC’s review is limited to
determining the prudence of the utility’s actual incurred natural gas facilities relocation costs and
the reasonableness of the utility’s projected natural gas facilities relocation costs for the next
calendar year, and providing for a true-up of the costs with the projections on which past factors
were set. Any refund or collection made pursuant to the true-up process must include applicable
interest.
The section also requires that all costs approved pursuant to this clause be allocated to customer
classes pursuant to the rate design most recently approved by the PSC. If a capital expenditure is
recoverable as a natural gas facilities relocation cost, the public utility may recover the annual
depreciation on the cost, calculated at the public utility’s current approved depreciation rates, and
a return on the undepreciated balance of the costs at the public utility’s weighted average cost of
capital using the last approved return on equity.
The section directs the PSC to adopt rules to implement the section as soon as practicable.
Section 10 amends s. 377.601, F.S., to substantially revise the legislative intent as it pertains to
part II, of ch. 377, F.S., which provides energy resource planning and development policies for
136
Section s. 366.91(2)(f), F.S., states that “renewable natural gas” means “electrical energy produced from a method that
uses one or more of the following fuels or energy sources: hydrogen produced or resulting from sources other than fossil
fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the
alternative energy resource, waste heat, from sulfuric acid manufacturing operations and electrical energy produced using
pipeline-quality synthetic gas produced from waste petroleum coke with carbon capture and sequestration.”
137
The petition should describe the utility’s natural gas facilities relocation costs for the next calendar year, actual natural gas
facilities relocation costs for the prior calendar year, and proposed cost-recovery factors designed to recover such costs.
Proceeding with implementing a plan before filing this petition would not constitute imprudence on the part of the utility.
138
Such costs would include, but not be limited to, the costs to relocate or reconstruct facilities as required by a mandate, a
statute, a law, an ordinance, or an agreement between the utility and an authority, including, but not limited to, costs
associated with reviewing plans provided by an authority. The costs would not include any costs recovered through base
rates. BILL: CS/SB 1624 Page 30
Florida. It deletes the legislative intent section as described on page 20 of this analysis. As
rewritten, the intent provides that 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 revised intent further states that governance of
the state’s energy policy be efficiently directed toward achieving this purpose.
For the purposes of the above, the revised section states that the state’s energy policy should be
guided by all of the following goals:
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.
Supporting economic growth.
In furtherance of the above goals, the rewritten section provides that it is state policy to:
Promote the cost-effective development and effective use of a diverse supply of domestic
energy resources in the state and discourage energy waste and deletes a provision on global
climate change;
Promote 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 and deletes programs aimed at promoting energy conservation, energy security, and
the reduction of greenhouse gas emissions;
Reduce reliance on foreign energy resources;
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
impacts in relation to the goals stated above;
Encourage the research, development, demonstration, and application of domestic energy
resources, including the use of renewable energy resources;
Consider, in its decisionmaking, the impacts of energy-related activities on the goals above,
including the whole-life-cycle impacts of any potential energy use choices, so that
detrimental effects of these activities are understood and minimized; and
Develop and maintain energy emergency preparedness plans to minimize the effects of an
energy shortage within the state Florida.
Deletes references to alternative energy resources and environmental, economic, and social
impacts. BILL: CS/SB 1624 Page 31
Section 11 amends s. 377.6015, F.S., to revise the duties of the DACS to conform to the changes
made by the bill and require that the DACS advocate for energy issues consistent with the goals
in proposed s. 377.601(2), F.S., provided in Section 10 of the bill.
Section 12 amends s. 377.703, F.S., to revise the duties of the DACS to conform to the changes
made by the bill. It also eliminates a requirement that the DACS, when analyzing the energy data
it collects and preparing long-range forecasts of energy supply and demand in coordination with
the PSC (which is responsible for electricity and natural gas forecasts), that the forecasts contain
plans for the development of renewable energy resources and reduction in dependence on
depletable energy resources, particularly oil and natural gas. Instead, such forecasts must contain
an analysis of the extent to which domestic energy resources, including renewable energy
sources, are being utilized in the state.
The section also deletes a requirement that the forecasts contain:
Consideration of alternative scenarios of statewide energy supply and demand for five, 10,
and 20 years to identify strategies for long-range action, including identification of potential
social, economic, and environmental effects. Instead, such consideration must be made for
potential impacts in relation to the goals in proposed s. 377.601(2), F.S., provided in Section
10 of the bill.
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. Instead, such assessments must contain an
analysis of anticipated impacts in relation to the goals in proposed s. 377.601(2), F.S.,
provided in Section 10 of the bill, resulting from energy resource development activities or
from energy supply constraints, or both.
Section 13 repeals the following sections:
Sections 377.801-804, F.S., providing the Florida Energy and Climate Protection Act;
Section 377.808, F.S., providing the Florida Green Governments Grant Act;
Section 377.809, F.S., providing the Energy Economic Zone Pilot Program;
Section 377.816, F.S., providing a program operated by Office of Energy within the DACS
for allocating or reallocating the qualified energy conservation bond volume limitation
provided by 26 U.S.C. s. 54D.
Section 14 provides for that for the programs deleted in Section 13 of the bill, there may not be:
New or additional applications, certifications, or allocations approved.
New letters of certification issued.
New contracts or agreements executed.
New awards made.
In addition, the section provides that all certifications or allocations issued under those 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. For existing
contracts or agreements authorized under those programs, they will continue in full force and BILL: CS/SB 1624 Page 32
effect in accordance with the statutory requirements in effect when the contract or agreement was
executed or last modified. Any further modifications, extensions, or waivers may not be made or
granted relating to those contracts or agreements, except computations by the Department of
Revenue of the income generated by or arising out of a qualifying project.
Section 15 amends s. 288.9606, F.S., relating to the issue of revenue bonds, to conform to
changes made by the bill.
Section 16 amends s. 380.0651, F.S., relating to statewide guidelines, standards, and exemptions,
to conform to changes made by the bill.
Section 17 amends s. 403.9405, F.S., to revise a provision in s. 403.9405(2), F.S., providing that
the Natural Gas Transmission Pipeline Siting Act does not apply to natural gas transmission
pipelines which are less than 15 miles in length or which do not cross a county line, unless the
applicant has elected to apply for certification of that pipeline. The section increases the 15-mile
limit for non-applicability to be 100 miles.
Section 18 amends s. 409.508, F.S., regarding the Low-Income Energy Assistance Program
(LIHEAP). The bill directs the FDC to expand the eligibility for LIHEAP to Florida residents
enrolled in any of the following:
Social Security Disability Insurance program.
Social Security Insurance program.
United States Department of Veterans Affairs disability benefits.
Supplemental Nutritional Assistance Program.
Temporary Assistance for Needy Families.
The section also directs the FDC to develop a process for automatic payments on behalf of
individuals to their household’s home energy supplier. The process must include:
Detailed requirements for any necessary statutory or regulatory changes, application process
changes, or other requirements necessary to allow the FDC to identify individuals who
qualify for automatic program payments without requiring said individuals to submit
additional program applications.
A data sharing process detailing steps the FDC will take to identify and share a list of
categorically eligible residents with home energy suppliers. A home energy supplier that
agrees to receive direct program payments must apply the benefits as prescribed and
document such payments in its annual program performance measures report.
The section also makes technical changes.
Section 19 amends s. 720.3075, F.S., which relates to prohibited clauses in homeowners’
association documents. The section creates a prohibition that association 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:
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Investor-owned electric utilities;
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To the extent of serving the customers they are authorized to serve. BILL: CS/SB 1624 Page 33
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
Category I liquefied petroleum gas dealers, category II liquefied petroleum gas dispensers, or
category III liquefied petroleum gas cylinder exchange operators as defined in s. 527.01, F.S.
The section also prohibits association documents, including declarations of covenants, articles of
incorporation, or bylaws, may not preclude the use of an appliance
140
using the fuels or energy
types used, delivered, converted, or supplied by the entities above.
Section 20 directs 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. In regards
to the cyber threat assessment, the PSC is to also consult with the Florida Digital Service. The
section also directs all electric utilities, natural gas utilities, and natural gas pipelines in the state
to cooperate with the assessment. The PSC must deliver a report of this assessment to the
Governor, the President of the Senate, and the Speaker of the House of Representatives by
January 1, 2025.
Section 21 directs the PSC to study and evaluate the technical and economic feasibility of using
advanced nuclear power technologies, including small modular reactors (SMRs), to meet the
state’s electrical power needs, and research means to encourage and foster the installation and
use of such technologies at military installations in the state. The PSC is to submit a report of its
findings, along with any recommendations for potential legislative or administrative actions, to
the Governor, President of the Senate, and Speaker of the House of Representatives by January
1, 2025. The findings and recommendations must be consistent with the goals proposed in
s. 377.601(2), F.S., provided in Section 10 of the bill.
Section 22 directs the FDOT, in consultation with the Office of Energy within the 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. The
FDOT is to submit a report of its findings, along with any recommendations for potential
legislative or administrative actions, to the Governor, President of the Senate, and Speaker of the
House of Representatives by January 1, 2025. The findings and recommendations must be
consistent with the goals proposed in s. 377.601(2), F.S., provided in Section 10 of the bill.
Section 23 amends s. 220.193, F.S., regarding the Florida renewable energy production credit, to
conform to changes made by the bill.
Section 24 provides that the bill shall take effect July 1, 2024.
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As used in this section, “appliance” means 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. BILL: CS/SB 1624 Page 34
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
Section 9 of Article I of the State Constitution, states that “no person shall be deprived of
life, liberty or property without due process of law.” There is no single test as to whether
the requirements of due process are met. However, the fundamental requirements of due
process are whether there has been reasonable notice and reasonable opportunity to be
heard.
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As noted by the Supreme Court, the “general statutory scheme for making and adjusting
[public utility] rates embraces the traditional requirements of procedural due process, i. e.
notice and a hearing.”
142
However, there is no single test of due process and the
“legislature may determine by what process and procedure legal rights may be asserted
and determined provided that the procedure adopted affords reasonable notice and a fair
opportunity to be heard before rights are decided.”
143
“Due process cannot be
compromised on the footing convenience or expediency.”
144
Rather, due process should
be appropriate to the nature of the case.
145
Section 6 of the bill, amending s. 366.04, F.S., creates a process for the PSC to adjust
base rates and accompanying tariffs for public utilities to provide public utilities with a
targeted storm reserve. The section specifies a process where utilities must file, by
October 15, with the PSC, their request under the proposed section, and the PSC must
administratively approve the filing by November 15 (with rates to take effect on January
141
Citizens of State v. Florida Pub. Serv. Com'n, 146 So. 3d 1143, 1154 (Fla. 2014).
142
Florida Power Corp. v. Hawkins, 367 So. 2d 1011, 1013 (Fla. 1979).
143
Citizens of State v. Florida Pub. Serv. Com'n, 146 So. 3d 1143, 1154 (Fla. 2014), citing Peoples Bank of Indian River
Cnty. v. State, Dep't of Banking & Fin., 395 So.2d 521, 524 (Fla.1981).
144
Citizens of State v. Florida Pub. Serv. Com'n, 146 So. 3d 1143, 1154 (Fla. 2014), citing United Tel. Co. of Fla. V. Beard,
611 So.2d 1240, 1243 (Fla.1993).
145
Keys Citizens for Responsible Gov't, Inc. v. Florida Keys Aqueduct Auth., 795 So. 2d 940, 948 (Fla. 2001). BILL: CS/SB 1624 Page 35
1). This condensed time frame may raise substantial issues for the PSC, as the PSC notes
in its analysis of this provision in SB 1548:
The process outlined by [the bill] does not clearly afford an entry point given
ambiguity surrounding the phrase “administrative approval.” In the past, the
Commission has chosen to internally delegate certain powers to Staff…to address
largely non-substantive matters unlikely to infringe upon the substantial rights of
a party. That process would preclude participation from interested persons.
However, if the phrase “administrative approval” was a reference to the typical
administrative process by which changes in base rate are approved, then SB 1548
does not provide enough time to ensure substantially interested persons can
participate.
Nor would the Commission have sufficient time to process a base rate case (for 11
different utilities)….
Ambiguity surrounding the “administrative approval” process, combined with the
narrow deadlines that the various required steps will be operating under, might
result in stakeholders feeling left out of the process. If so, they could potentially
mount legal challenges to the storm reserve figure if they object to its rate
impact.
146
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The following provisions of the bill may have a fiscal impact on the private sector:
Deleting requirements relating to the Florida Climate-Friendly Preferred Products
List may have a negative impact on companies that have products on that list as they
may see a reduction in purchases of those products.
The provision requiring state agencies and political subdivisions to consult a Florida
Humane Preferred Products List when procuring certain energy products, may
positively financially impact those companies with products on the list. Conversely,
companies with products not on the list may be negatively financially impacted.
The provisions reducing the applicability of the Natural Gas Transmission Pipeline
Siting Act will likely reduce regulatory costs for pipeline projects.
Ratepayers may see, at least initially, a utility rate increase due to the targeted storm
reserve provisions of the bill. The amount of any increase is dependent on several
factors including the severity of storms impacting a particular public utility and
current storm reserves.
146
Florida Public Service Commission, Bill Analysis for SB 1548, supra note 82. BILL: CS/SB 1624 Page 36
C. Government Sector Impact:
The directives of the bill likely expands the responsibilities of the following state
agencies:
The Public Service Commission (PSC);
The Department of Agriculture and Consumer Services;
The Department of Commerce; and
The Florida Department of Transportation.
The above agencies have not yet issued their analyses of this bill, so it is unknown at this
time the extent to which the bill would impact those agencies’ operations. The PSC,
however, in its analysis of SB 1548, stated that implementing a similar provision in that
bill to Section 21 of this bill (directing the PSC to study and evaluate the technical and
economic feasibility of using advanced nuclear power technologies, including small
modular reactors) would likely require the PSC to secure outside experts because the
“technology is in its infancy, and no such reactors have been put into operation either in
Florida or elsewhere.” The PSC provided an estimated cost of such services of $190,000,
based on the inflation-adjusted cost of consultants it has hired for a previous research
project.
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VI. Technical Deficiencies:
None.
VII. Related Issues:
Section 2 of the bill refers to an “energy storage device with a capacity of greater than one
kilowatt.” Kilowatt hours may be what was intended here as that is a measure of battery storage
rather than output.
Section 5 of the bill uses the term “development district,” but does not define this term. It is
unclear if this is intended to mean a community development district or another entity. The
sponsor may wish to revise this term or include a definition.
Section 6 of the bill uses the terms “base rate,” “storm reserve,” and “surveillance reports.”
While these terms are used commonly at the Public Service Commission, they are not defined for
ch. 366, F.S. In addition, the term “surveillance reports” is not used anywhere in Florida Statutes.
The sponsor may wish to define these terms for this section. In addition, the targeted storm
reserves provisions are amended into the PSC’s jurisdiction section. A new separate section
following s. 366.96, F.S., would appear to be a more logical placement.
Section 7 of the bill states that the PSC “is authorized to establish an experimental mechanism to
facilitate energy infrastructure investment consistent with the structure set forth in s. 366.96(7)
and (8), the intent of s. 366.91(1), and the definition of the term ‘renewable natural gas’ in s.
147
Id. BILL: CS/SB 1624 Page 37
398 366.91(2)(f).” Sections 366.97, F.S., specifically provide a process for storm protection
costs, so it is potentially unclear what portions of the procedures identified in those sections is
intended to be applicable to Section 7 of the bill. It is also unclear as how the definition of
“renewable natural gas” is intended to be included in the structure that is referenced.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 286.29, 337.25,
366.032, 366.04, 366.075, 366.94, 377.601, 377.6015, 377.703, 288.9606, 380.0651, 403.9405,
409.508, 720.3075, and 220.193.
This bill creates the following sections of the Florida Statutes: 163.3210 and 366.99.
This bill repeals the following sections of the Florida Statutes: 377.801, 377.802, 377.803,
377.804, 377.808, 377.809, and 377.816.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Regulated Industries on January 30, 2024:
The committee substitute:
Adds a provision prohibiting the Florida Department of Transportation (FDOT) from
assigning or transferring its permitting rights across any transportation right-of-way
operated by the FDOT to a third party or governmental entity that does not operate
the transportation right-of-way without prior approval of the Legislature.
Adds a provision prohibiting the FDOT and local government entities from requiring
a utility within a public road operated by the authority to be relocated on behalf of
any other third-party or governmental agency project related to a separate public or
private road or transportation corridor.
Deletes a provision in the bill that created an electric vehicle battery deposit program
within the Department of Highway Safety and Motor Vehicles and a related report.
Deletes a provision in the bill that required the FDOT, when it enters a contract or has
entered into a contract or license to allow a vendor to sell motor fuel or charging
services along the turnpike system, offer access to potential vendors of other motor
vehicle fuels or repowering services along the turnpike system.
Deletes a provision in the bill that created a requirement that, before a public utility
retires an electrical power plant, it must petition the Public Service Commission
(PSC) for approval.
Adds a provision requiring the PSC to create targeted storm reserve amounts for
public utilities.
Adds a provision authorizing the PSC to establish an experimental mechanism to
facilitate energy infrastructure investment.
Regarding a provision in the bill permitting the PSC to approve voluntary public
utility programs for residential, customer-specific electric vehicle charging, it revises
the applicability date for previously approved programs. BILL: CS/SB 1624 Page 38
Adds a provision requiring the PSC to conduct an annual proceeding to determine
prudently incurred natural gas facilities relocation costs for cost recovery by natural
gas public utilities.
Adds a provision directing the Florida Department of Commerce (FDC) to expand
eligibility for the Low-Income Energy Assistance Program (LIHEAP) to persons in
certain federal disability programs.
Adds a provision directing the FDC to develop a process for automated LIHEAP
payments to home energy suppliers.
Deletes a provision that directs the PSC to ensure technologies that allow businesses
and consumers to use electrical energy for their own use are used in a way that best
maintains the integrity of the state electricity grid. The deleted provision also required
the PSC to establish programs and rate mechanisms, and submit a report to the
legislature.
Makes technical and conforming changes.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.