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 Appropriations Committee on Agriculture, Environment, and General
Government
BILL: CS/CS/SB 1624
INTRODUCER: Appropriations Committee on Agriculture, Environment, and General Government and
Regulated Industries Committee and Senator Collins
SUBJECT: Energy Resources
DATE: February 22, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Schrader Imhof RI Fav/CS
2. Schrader/Davis Betta AEG Fav/CS
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/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.
Requires the Department of Management Services (DMS) to develop the Florida Humane
Preferred Products List to identify certain products that appear to be largely made free from
forced labor.
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
used, delivered, converted, or supplied by utilities, gas districts, natural gas transmission
companies, and certain liquefied petroleum gas dealers, dispensers, and cylinder exchange
operators.
REVISED: BILL: CS/CS/SB 1624 Page 2
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 all electric cooperatives and municipal electric utilities to enter into and maintain
certain mutual aid agreements and submit an annual attestation to qualify to receive state
financial assistance for disaster recovery.
Permits the Public Service Commission (PSC) to approve upon petition by a public utility,
certain electric vehicle (EV) charging programs if the PSC determines that the public utility’s
general body of ratepayers, as a whole, will not pay to support recovery of its electric vehicle
charging investment by the end of the useful life of the assets dedicated to the electric vehicle
charging service.
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 through a charge
separate from the utility’s base rates.
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 Department of Agriculture and Consumer Services
(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.
Revises the duties of the DACS as it relates to the promotion of the development and use of
renewable energy sources. The section deletes a requirement that the DACS establish goals
and strategies for increasing the use of renewable energy in the state.
Repeals the Florida Energy and Climate Protection Act (Renewable Energy and Energy-
Efficient Technologies Grants Program), Florida Green Government Grants Act, Energy
Economic Zone Pilot Program, and Qualified Energy Conservation Bonds provisions.
Provides procedures for handling existing applications and contracts relating to the above
repealed programs.
Prohibits the construction, operation, or expansion of offshore wind energy facilities and
wind turbines located on real property within one mile of the state’s coastline or on waters of
the state.
Requires the Department of Environmental Protection (DEP) to review federal wind energy
lease applications and signify DEP’s approval or objection.
Increases the minimum length of an intrastate natural gas pipeline that requires certification
under the Natural Gas Transmission Pipeline Siting Act from 15 miles to 100 miles.
Prohibits homeowners associations from disallowing certain types or fuel sources of energy
production and appliances that use such fuels in their governing documents. BILL: CS/CS/SB 1624 Page 3
Directs the PSC to conduct an assessment, in consultation with the Department of Emergency
Management (DEM), 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, in partnership with public utilities and in consultation
with the DEM, 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 Florida Department of Transportation (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 submit a report to the
Governor, President of the Senate, and Speaker of the House of Representatives.
Makes conforming changes.
The bill may have a significant negative fiscal impact on state expenditures. See Section V.,
Fiscal Impact Statement.
Except as expressly otherwise provided, the bill takes effect July 1, 2024.
II. Present Situation:
Florida Energy Consumption and Generation
Florida is the third-largest energy consuming state; however, it uses less energy per capita than
all but six other states. Florida is also the second-largest producer of electricity in the nation
(behind Texas). Natural gas is, by far, the largest energy source in Florida, and has been since
2003 when it surpassed coal.
1
As of 2022, the energy sources, as a percentage of all energy
sources in Florida, are as follows:
Natural gas: 69.55 percent
Nuclear: 11.16
Coal: 6.40
Renewables: 5.76
Other: 5.04
Firm Inter-Region Interchange: 1.91
Distillate (i.e. fuel oil/diesel fuel): 0.16
Residual: 0.01
1
United States Energy Information Administration, Florida Profile Analysis, Feb. 15, 2024,
https://www.eia.gov/state/analysis.php?sid=FL#:~:text=Solar%20energy%20and%20biomass%20provide,generation%20
(last visited Feb. 20, 2024). BILL: CS/CS/SB 1624 Page 4
Non-utility generators: less than 0.01
2
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.
3
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.
4
The section defines “renewable energy” to mean:
[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.
5
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,”
6
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.”
7
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.
8
2
Florida Reliability Coordinating Council, 2023 Regional Load & Resource Plan FRCC-MS-PL-502, Version: 1, s-18, Jun.
6, 2023 (available at: https://www.floridapsc.com/pscfiles/website-
files/PDF/Utilities/Electricgas/TenYearSitePlans//2023/FRCC_RLRP.pdf).
3
Section 366.91(1), F.S
4
Id.
5
Section 366.91(2)(e), F.S.
6
Section 366.91(2)(a), F.S.
7
Section 366.91(2)(b), F.S.
8
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 Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 5
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.
9
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.
10
Biodiesel
is generally blended with petroleum-based diesel for consumption as a vehicle fuel.
11
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
seamlessly blended, transported, and even co-processed with petroleum-based diesel.
12
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.
13
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.
14
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.
15
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).
16
9
Id.
10
Id.
11
United States Energy Information Administration, Biofuels explained, Jul. 19, 2022,
https://www.eia.gov/energyexplained/biofuels/ (last visited Feb. 1, 2024).
12
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 Feb. 1, 2024).
13
Id.
14
United States Energy Information Administration, Biofuels explained, supra note 11.
15
United States Energy Information Administration, Natural gas explained, Dec. 27, 2022,
https://www.eia.gov/energyexplained/natural-gas/ (last visited Feb. 1, 2024)
16
Environmental Protection Agency, Landfill Methane Outreach Program (LMOP): Renewable Natural Gas,
https://www.epa.gov/lmop/renewable-natural-gas (last visited Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 6
Section 366.91, F.S., identifies sources for producing RNG as a potential source of renewable
energy.
17
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.
18
Raw biogas has a methane content
between 45 and 65 percent.
19
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
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.
20
RNG meeting certain standards, qualifies as an advanced biofuel under the Federal Renewable
Fuel Standard Program.
21
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.
22
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.
23
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.
24
17
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.
18
Environmental Protection Agency, supra note 16.
19
Id.
20
United States Department of Energy, Renewable Natural Gas Production,
https://afdc.energy.gov/fuels/natural_gas_renewable.html (last visited Feb. 1, 2024).
21
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: Feb. 1, 2024).
22
Environmental Protection Agency, Renewable Fuel Standard Program, https://www.epa.gov/renewable-fuel-standard-
program (last visited Feb. 1, 2024).
23
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 Feb. 1, 2024)
24
International Renewable Energy Agency, Hydrogen, available at https://www.irena.org/Energy-
Transition/Technology/Hydrogen (last visited Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 7
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
25
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.
26
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.
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.
27
This hydrogen is then captured
and used or sold as an end product or as a fuel to generate electricity.
28
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.
25
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 Feb. 1, 2024).
26
United States Energy Information Administration, Hydrogen Explained: Production of Hydrogen, supra note 23.
27
Id.
28
Florida Public Service Commission, Bill Analysis for SB 1162 (Mar. 14, 2023) (on file with the Senate Regulated
Industries Committee). BILL: CS/CS/SB 1624 Page 8
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.
29
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
before reaching its end use.
30
Thus, currently, most hydrogen is produced in close proximity to
its end use.
31
However, technology is in development that may bring these costs down and allow
for easier transport and transmission of hydrogen.
32
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.
33
Potential uses for hydrogen are in:
34
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.
29
Bulletin H2, Hydrogen Colours Codes, available at https://www.h2bulletin.com/knowledge/hydrogen-colours-codes/ (last
visited: Jan. 25, 2024).
30
United States Office of Energy Efficiency and Renewable Energy, Hydrogen Delivery, available at
https://www.energy.gov/eere/fuelcells/hydrogen-delivery (last visited: Feb. 1, 2024).
31
Florida Public Service Commission, Bill Analysis for SB 1162, supra note 28.
32
See Florida Public Service Commission, Bill Analysis for SB 1162, supra note 2828, which describes potential new
technologies that can overcome the transportation and transmission cost hurdle for hydrogen.
33
United States Office of Energy Efficiency and Renewable Energy, supra note 30.
34
International Renewable Energy Agency, supra note 24. BILL: CS/CS/SB 1624 Page 9
Florida Public Service Commission
The Florida Public Service Commission (PSC) is an arm of the legislative branch of
government.
35
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.
36
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.
37
Electric and Gas Utilities
The PSC monitors the safety and reliability of the electric power grid
38
and may order the
addition or repair of infrastructure as necessary.
39
The PSC has broad jurisdiction over the rates
and service of investor-owned electric and gas utilities
40
(called “public utilities” under
ch. 366, F.S.).
41
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.
42
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.
43
Florida also has 27 municipally-owned gas utilities and four
special gas districts.
44
35
Section 350.001, F.S.
36
See Florida Public Service Commission, Florida Public Service Commission Homepage, http://www.psc.state.fl.us (last
visited Feb. 1, 2024).
37
Florida Public Service Commission, About the PSC, https://www.psc.state.fl.us/about (last visited Feb. 1, 2024).
38
Section 366.04(5) and (6), F.S.
39
Section 366.05(1) and (8), F.S.
40
Section 366.05, F.S.
41
Section 366.02(8), F.S.
42
Florida Public Service Commission, About the PSC, supra note 37.
43
Florida Municipal Electric Association, About Us, https://www.flpublicpower.com/about-us (last visited Feb. 1, 2024).
44
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.” BILL: CS/CS/SB 1624 Page 10
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.
45
These
cooperatives operate in 57 of Florida’s 67 counties and have more than 2.7 million customers.
46
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.
47
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).
48
In addition, there are eight investor-
owned natural gas utility companies (gas IOUs) in Florida: Florida City Gas, Florida Division of
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.
49
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.
50
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.
51
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
45
Florida Electric Cooperative Association, Members, https://feca.com/members/ (last visited Feb 1, 2024).
46
Florida Electric Cooperative Association, Our History, https://feca.com/our-history/ (last visited Feb. 1, 2024).
47
Id.
48
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, supra note 44, at 5.
49
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.
50
PSC, 2022 Annual Report, p. 6, (available at: https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/AnnualReports/2022.pdf) (last visited Feb. 1, 2024).
51
Id. BILL: CS/CS/SB 1624 Page 11
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.
52
Currently, Florida has three
major pipelines: Florida Gas Transmission Company, Gulfstream Natural Gas System, and Sabal
Trail Interstate Pipeline. The state also has two minor pipelines: Gulf South Pipeline Company
and Southern Natural Gas.
53
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.”
Mutual Aid Agreements for Electric Utilities
Florida law requires electric utilities to take steps to minimize outages during major weather
events. Electric IOUs are required to file a transmission and distribution storm protection plan,
for approval by the PSC that covers their immediate 10-year planning period. This plan must
explain the systematic approach the utility will follow to achieve the objectives of reducing
restoration costs and outage times associated with extreme weather events and enhancing
reliability. This plan is updated every three years by the utility.
54
For municipal electric utilities and rural electric cooperatives, the PSC rule requires the utilities
to submit, every three years, a report as to the extent that their “construction standards, policies,
52
Florida Public Service Commission, 2023 Facts and Figures of the Florida Utility Industry, supra note 44, at 13.
53
Id.
54
Section 366.96, F.S. BILL: CS/CS/SB 1624 Page 12
practices, and procedures are designed to address the ability of transmission and distribution
facilities to mitigate damage caused by extreme weather.”
55
During routine outage events, electric utilities will generally use their own crews or contractors
to repair damage and restore power. However, during major natural disasters (such as a tropical
weather system, severe winter weather, or wildfire), the task of restoring power is typically so
considerable that utilities will need outside assistance to fully restore power in a timely manner.
56
Mutual aid agreements allow utilities to voluntarily form partnerships among utilities in a region
to obtain this assistance at agreed-upon terms. These agreements allow utilities to avoid having
to keep large numbers of emergency crews on staff all of the time. The types of resources shared
during an assistance response include utility employees and contractors, specialized utility and
construction equipment, supplies, and information.
57
Many of the mutual aid agreements in the United States among electric IOUs are managed by
one of seven regional mutual assistance groups (RMAGs).
58
RMAGs “facilitate the process of
identifying available restoration workers and help companies coordinate the logistics and
personnel involved in restoration efforts.”
59
The RMAG for Florida is the Southeastern Electric
Exchange RMAG (SEE RMAG). The SEE RMAG has members in all the Gulf Coast states, the
East Coast states (from Florida up to New Jersey), Pennsylvania, Ohio, Indiana, Illinois,
Kentucky, and West Virginia.
60
Though membership in a mutual aid agreement is not required
under Florida law for any electric utility, all four of Florida’s electric IOUs are members of the
SEE RMAG.
Municipal utilities and rural electric cooperatives have their own mutual assistance programs.
The American Public Power Association (APPA), together with state and regional public power
utilities and organizations, coordinates a network of mutual aid agreements for public power
(called the Mutual Aid Network).
61
The Mutual Aid Network connects over 2,000 organizations
to give or receive assistance during major power outages,
62
and municipal electric utilities and
rural electric cooperatives can join through executing a joint APPA/National Rural Electric
Cooperative Association Agreement.
63
Of Florida’s 33 municipal electric utilities, 28 are part of
55
Fla. Admin. Code R. 25-6.0343(3).
56
Miles Keogh and Sharon Thomas, National Association of Regulatory Commissioners, Regional Mutual Assistance
Groups: A Primer, Nov. 2015 (available at: https://pubs.naruc.org/pub/536E475E-2354-D714-5130-C13478337428)(last
visited Feb. 21, 2024).
57
Id.
58
PSC, Review of Florida’s Electric Utility Hurricane Preparedness and Restoration Actions 2018, at 24-25, (available at
https://www.floridapsc.com/pscfiles/websitefiles/PDF/Publications/Reports/ElectricGas//UtilityHurricanePreparednessRestor
ationActions2018.pdf )(last visited Feb. 22, 2024)
59
Edison Electric Institute, Understanding the Electric Power Industry’s Response and Restoration Process, Oct. 2016
(available at: https://www.eei.org/-/media/Project/EEI/Documents/Issues-and-Policy/Reliability-and-Emergency-
Response/MA_101.pdf)(last visited Feb. 22, 2024).
60
Southeastern Electric Exchange, About SEE, https://www.theexchange.org/aboutus.html (last visited Feb. 22, 2024).
61
PSC, Review of Florida’s Electric Utility Hurricane Preparedness and Restoration Actions 2018, at 25, supra note 58.
62
APPA, Mutual Aid and Emergency Response, https://www.publicpower.org/mutual-aid-and-emergency-response (last
visited Feb. 22, 2024).
63
APPA, APPA-NRECA Mutual Aid Agreement, https://www.publicpower.org/system/files/documents/APPA-
NRECA%20Mutual%20Aid%20Agreement%20Updated_0.pdf (last visited Feb 22, 2024). BILL: CS/CS/SB 1624 Page 13
the Mutual Aid Network;
64
and 15 of Florida’s 16 distribution rural electric cooperatives are part
of the Mutual Aid Network.
65
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:
66
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.
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).
67
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.
64
APPA, FEMA Mutual Aid Agreement-Region IV, https://www.publicpower.org/fema-mutual-aid-agreement-region-iv (last
visited Feb. 22, 2024).
65
APPA, NRECA Members,
https://www.publicpower.org/system/files/documents/Cooperative%20Mutual%20Aid%20Signatories%20from%20NRECA.
pdf (last visited Feb. 22, 2024).
66
To the extent of serving the customers they are authorized to serve.
67
U.S. Dept. Energy, AFDC, Hybrid and Plug-In Electric Vehicles, https://afdc.energy.gov/vehicles/electric.html (last visited
Feb. 22, 2024). BILL: CS/CS/SB 1624 Page 14
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.
68
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.
69
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.”
70
Increased interest in EVs has been driven by higher gas prices and greenhouse gas emission
concerns.
71
However, limited EV range (and the related and range anxiety
72
), 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.
73
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.
74
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
68
Id.
69
Brandon S. Tracy, Cong. Research Serv., R47227, Critical Minerals in Electric Vehicle Batteries, (2022) (available at
https://crsreports.congress.gov/product/pdf/R/R47227).
70
Section 320.01(36), F.S.
71
Id.
72
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 Feb. 1, 2024).
73
EV Connect, 10 Factors That Affect Widespread EV Adoption, https://www.evconnect.com/blog/10-factors-affecting-ev-
adoption (last visited Feb. 1, 2024).
74
U.S. Dept. of Energy, Developing Infrastructure to Charge Electric Vehicles,
https://afdc.energy.gov/fuels/electricity_infrastructure.html (Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 15
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.
75
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.
76
The Florida Legislature created an exemption for electric vehicle charging in 2012, 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.
77
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.
78
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.
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
75
Environmental Protection Agency, Plug-in Electric Vehicle Charging: The Basics,
https://www.epa.gov/greenvehicles/plug-electric-vehicle-charging-basics (Feb. 1, 2024).
76
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 Feb 1, 2024).
77
Section 366.94(1), F.S.
78
United States Department of Energy, Alternative Fuels Data Center, https://afdc.energy.gov/ (last visited Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 16
applicable areas.
79
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.
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.
80
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.
81
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.
79
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 Feb. 1, 2024).
80
United States Energy Information Administration, Electricity Explained,
https://www.eia.gov/energyexplained/electricity/how-electricity-is-generated.php (last visited Feb. 1, 2024).
81
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 Feb. 1, 2024). BILL: CS/CS/SB 1624 Page 17
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—
82
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.
83
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.
84
Wind Energy
Wind energy is a form of renewable energy where wind is used to turn blades connected to a
generator just downwind of the blades in the head (or nacelle) of a wind turbine. The spinning of
this generator produces energy which can be used for specific needs or to provide power to the
electric grid. A typical 2.8 megawatt, utility-scale wind turbine can produce enough electricity to
power approximately 100,000 homes.
85
Wind power is the U.S.’s largest source of renewable
energy;
86
however, its deployment in Florida is extremely limited. As of 2022, wind energy
represented 0.38 percent of the total energy sources used in Florida;
87
none at the utility-scale.
According to the United States Energy Information Administration, Florida does not have
significant wind energy resources, onshore or offshore, and the state has no utility-scale-wind-
powered generating capacity.
88
Good places for wind turbines are where the annual average wind speed is nine miles per hour
(or four meters per second) for small wind turbines and 13 miles per hour (or 5.8 meters per
second) for utility scale. Favorable sites for development include tops of smooth, rounded hills;
open plains and water; and mountain gaps that funnel and intensify wind—and wind speeds go
82
United States Energy Information Administration, Nuclear explained, https://www.eia.gov/energyexplained/nuclear/us-
nuclear-industry.php (last visited Feb. 1, 2024).
83
United States Department of Energy, Office of Nuclear Energy, Nuclear Reactor Technologies,
https://www.energy.gov/ne/nuclear-reactor-technologies (last visited Feb. 1, 2024).
84
United States Department of Energy, Office of Nuclear Energy, Advanced Reactor Technology,
https://www.energy.gov/ne/advanced-reactor-technologies (last visited Feb. 1, 2024).
85
United States Office of Energy Efficiency and Reliability, What is Wind Power, https://windexchange.energy.gov/what-is-
wind (last visited Feb. 22, 2024).
86
Id.
87
Florida Reliability Coordinating Council, supra note 2.
88
United States Energy Information Administration, Florida Profile Analysis, supra note 1. BILL: CS/CS/SB 1624 Page 18
up with increasing elevation.
89
Florida’s lower wind speed (like much of the rest of the southeast
U.S. where there is also little wind energy development) and flat topography limit the viability of
wind energy production in the states.
Offshore wind is the newest application of wind energy. Offshore wind involves placing wind
turbines over bodies of water where wind speeds are generally higher and more constant.
90
In
depths of less than 60 meters, turbines can be fixed to the bottom of a body of water. For deeper
than 60 meters, turbines are floated, tethered to the floor of the body of water.
91
These turbines
then use undersea cables to transmit electricity to the grid.
92
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.
93
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
Supporting decarbonization efforts.
94
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.
95
The grid was traditionally designed for centralized power
89
United States Energy Information Administration, Wind Explained, Apr. 20, 2023,
https://www.eia.gov/energyexplained/wind/where-wind-power-is-harnessed.php (last visited Feb. 22, 2024).
90
American Geosciences Institute, What are the advantages and disadvantages of offshore wind farms?,
https://www.americangeosciences.org/critical-issues/faq/what-are-advantages-and-disadvantages-offshore-wind-farms (last
visited Feb. 22, 2024).
91
United States Office of Energy Efficiency and Reliability, What is Wind Power, supra note 855.
92
United States Energy Information Administration, Top 10 Things You Didn’t Know About Offshore Wind Energy,
https://www.energy.gov/eere/wind/articles/top-10-things-you-didnt-know-about-offshore-wind-energy (last visited Feb. 22,
2024).
93
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 Feb. 1,
2024).
94
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 Feb. 1,
2024).
95
Id. BILL: CS/CS/SB 1624 Page 19
generation and, primarily, a one-way power flow.
96
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.
97
Smart demand response programs and load management strategies can help mitigate or reduce
these issues.
98
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),
99
in procuring products from state term
contracts.
100
If the price is comparable, they must procure such products.
101
Contract only with hotels or conference facilities for meetings and conferences as recognized
by the Green Lodging Program.
102,103
Ensure vehicles meet minimum maintenance schedules shown to reduce fuel consumption
and report such compliance to the DMS.
104
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.
105
96
Dynamic Ratings, What are Distributed Energy Resources, https://www.dynamicratings.com/solutions/smart-
infrastructure-solutions/distributed-energy-resources/ (Feb 1, 2024).
97
Id.
98
Id.
99
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 Feb. 1, 2024).
100
Section 286.29(1), F.S.
101
Id.
102
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 Feb. 1, 2024).
103
Section 286.29(2), F.S.
104
Section 286.29(3), F.S.
105
Section 286.29(4), F.S. BILL: CS/CS/SB 1624 Page 20
Use ethanol and biodiesel blended fuels when available.
106
Procure biofuels for fleet, to the greatest extent practicable, if the agency administers central
fueling operations.
107
Department of Agriculture and Consumer Services
The Department of Agriculture and Consumer Services (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.
108
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.
109
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
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;
106
Section 286.29(5), F.S.
107
Id.
108
FLA. CONST. art. IV, s. 4.
109
Florida Department of Agriculture and Consumer Services, About Us, https://www.fdacs.gov/About-Us (last visited Feb.
1, 2024). BILL: CS/CS/SB 1624 Page 21
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 decision-making, 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.,
110
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.;
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
110
Section 377.703, F.S., also provides an extensive list of the DACS functions regarding energy supply and demand. BILL: CS/CS/SB 1624 Page 22
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.”
111
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”
112
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.
113
The Florida Green Governments Grant Act which provides grants to assist local governments
in the development and implementation of programs that achieve green standards.
114
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
implement chapter 2008-191, Laws of Florida, relative to discouraging sprawl and
developing energy-efficient land use patterns and greenhouse gas reduction strategies.”
115
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.
116
111
Section 377.802, F.S.
112
Section 377.804, F.S.
113
Section 377.805, F.S.
114
Section 377.808, F.S.
115
Section 377.809, F.S.
116
Section 377.810, F.S. BILL: CS/CS/SB 1624 Page 23
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.”
117
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.
118
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.
119
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.
120
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.
121
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.
122
The annual summary of Electric Emergency
Incident and Disturbance Reports indicated six cyber-related events in 2022, compared to seven
for 2021.
123
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.
124
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
117
Section 377.814, F.S.
118
Section 377.815, F.S.
119
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 Feb. 1, 2024). 26 U.S.C. s. 54D was
repealed by Pub.L. 115-97, Title I, s. 13404(a), effective Dec. 22, 2017.
120
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 Feb. 1,
2024).
121
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
Feb. 1, 2024).
122
International Energy Agency, Cybersecurity – is the power system lagging behind?,
123
Id.
124
Id. BILL: CS/CS/SB 1624 Page 24
laws protect the rights of association members without unduly impairing the ability of such
associations to perform their functions.
125
A “homeowners’ association” is defined as a:
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.
126
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.
127
Homeowners’ associations are administered by a board of directors whose members are
elected.
128
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.
129
The officers and members of a homeowners’ association
have a fiduciary relationship to the members who are served by the association.
130
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.
125
See s. 720.302(1), F.S.
126
Section 720.301(9), F.S.
127
Section 720.302(5), F.S.
128
See ss. 720.303 and 720.307, F.S.
129
See ss. 720.301 and 720.303, F.S.
130
Section 720.303(1), F.S. BILL: CS/CS/SB 1624 Page 25
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.
131
The governing document of a homeowners’ association are:
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.
132
III. Effect of Proposed Changes:
Section 1 creates s. 163.3210, F.S., relating to 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
133
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.
134
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
manner that would conflict with a resiliency facility’s classification as a permitted and allowable
use.
Section 2 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
131
See s. 720.306(9)(c), F.S.
132
Section 720.301(8), F.S.
133
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.”
134
Provided that such requirements are not more excessive than those applied to similar other uses. BILL: CS/CS/SB 1624 Page 26
for greatest fuel efficiency available for a given use class when fuel economy data is
available.
The section also creates a new provision requiring the DMS, in consultation with the Florida
Department of Commerce (FDC) and the Department of Agriculture and Consumer Services
(DACS), to 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-hour or that
contain or consist of an energy generation device with a capacity of greater than 500 watts. 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
135
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. 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
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.
135
Part I of ch. 450, F.S., provides the Child Labor Law for Florida. BILL: CS/CS/SB 1624 Page 27
Section 4 creates s. 366.042, F.S., relating to mutual aid agreements or electric cooperatives and
municipal electric utilities. This section requires rural electric cooperatives
136
and municipal
electric utilities to enter into and maintain, at least one of the following:
A mutual aid agreement with a municipal electric utility;
A mutual aid agreement with an electric cooperative;
A mutual aid agreement with a public utility; or
A pre-event agreement with a private contractor.
Rural electric cooperatives and municipal utilities must submit, on an annual basis by May 15, to
the Public Service Commission (PSC) an attestation that they have complied with the above
requirement. This provision does not give the PSC jurisdiction over the terms or conditions of
such agreements. By May 30 of each year, the PSC must compile these attestations and submit
them to the Department of Emergency Management (DEM). If a rural electric cooperative or
municipal utility does not comply with this requirement, they are not eligible to receive state
financial assistance, if such funding is available, for power restoration efforts following a natural
disaster that is subject to a state of emergency declared by the Governor. Until the time the
attestation is submitted, nothing in this section prevents a rural electric cooperative or municipal
electric utility from receiving federal funds. This section does not alter the PSC’s jurisdiction
over public or electric utilities.
Section 5 amends s. 366.94, F.S., to allow the PSC to approve, upon petition of a public utility,
voluntary electric vehicle charging programs, to become effective on or after January 1, 2025, to
include, but not be limited to, residential, fleet, and public electric vehicle charging. To be
approved, the PSC must determine that the public utility’s general body of ratepayers, as a
whole, will not pay to support recovery of its electric vehicle charging investment by the end of
the useful life of the assets dedicated to the electric vehicle charging service. 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 6 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 Florida Department of Transportation (FDOT) and local
government entities. The section allows each utility to recover such costs through a charge
separate and apart from base rates, referred to in the section as the natural gas facilities relocation
cost recovery clause.
136
The bill uses the term “electric cooperatives;” however, the term used in ch. 366, F.S., to refer a cooperative organized and
existing under the Rural Electric Cooperative Law is “rural electric cooperative.” This section is written under the assumption
that this was the type of entity that the section was intended to refer to.
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/CS/SB 1624 Page 28
The section directs the PSC to establish an annual proceeding to review these petitions. This
review is limited to:
Determining the prudence of the utility’s actual incurred natural gas facilities relocation
costs;
Determining 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 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 7 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
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, reliable, and cost-effective 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.
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; BILL: CS/CS/SB 1624 Page 29
Reduce reliance on foreign energy resources;
Include energy reliability and security 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 decision-making, 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.
Section 8 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 7 of the bill.
Section 9 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
7 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., BILL: CS/CS/SB 1624 Page 30
provided in Section 7 of the bill, resulting from energy resource development activities or
from energy supply constraints, or both.
The section also revises the duties of the DACS as it relates to the promotion of the development
and use of renewable energy sources. The section deletes a requirement that the DACS establish
goals and strategies for increasing the use of renewable energy in the state.
Section 10 creates s. 377.708, F.S., to provide the following definitions in relation to wind
energy:
"Coastline" means the established line of mean high water.
“Offshore wind energy facility" means any wind energy facility located on waters of this
state, including other buildings, structures, vessels, or electrical transmission cabling to be
sited on waters of this state, or connected to corresponding onshore substations that are used
to support the operation of one or more wind turbines sited or constructed on waters of this
state and any submerged lands or territorial waters that are not under the jurisdiction of the
state.
“Real property” means land, buildings, fixtures, and all other improvements to land. The
terms “land,” “real estate,” “realty,” and “real property” may be used interchangeably.
"Waters of this state" means any navigable waters of the United States within the territorial
limits of this state, the marginal sea adjacent to this state and the high seas when navigated as
a part of a journey or ride to or from the shore of this state, and all the inland lakes, rivers,
canals and submerged lands under the jurisdiction of this state.
"Wind energy facility" means an electrical wind generation facility or expansion thereof
having at least a 400-watt rated capacity, including substations; meteorological data towers;
aboveground, underground, and electrical transmission lines; and transformers, control
systems, and other buildings or structures under common ownership or operating control
used to support the operation of the facility the primary purpose of which is to offer
electricity supply for sale.
"Wind turbine" means a device or apparatus that has the capability to convert kinetic wind
energy into rotational energy that drives an electrical generator consisting of a tower body
and rotator with two or more blades. The term includes both horizontal and vertical axis
turbines. The term does not include devices used to measure wind speed and direction, such
as an anemometer.
The bill prohibits the construction, operation, or expansion of an offshore wind energy facility in
Florida. The bill also prohibits the construction or operation of a wind turbine on real property
within one mile of coastline, on waters of the state, and on any submerged lands. The bill
authorizes the Department of Environmental Protection (DEP) to bring an action for injunctive
relief against any person who owns, constructs, or operates an offshore wind energy facility or a
wind turbine in violation of the provisions of the bill.
Under the bill, the DEP must review all applications for federal wind energy leases in the
territorial waters of the United States adjacent to waters of Florida, and shall signify its approval
or objection to each application.
Section 11 repeals the following sections: BILL: CS/CS/SB 1624 Page 31
Sections 377.801-804, F.S., providing the Florida Energy and Climate Protection Act
(Renewable Energy and Energy-Efficient Technologies Grants Program);
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 12 provides for the programs deleted in Section 11 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.
All certifications or allocations issued under such programs are rescinded except for the
certifications of, or allocations to, those certified applicants or projects that continue to meet the
applicable criteria in effect before July 1, 2024. Any existing contracts or agreements authorized
under those programs must continue in full force and effect in accordance with the statutory
requirements in effect when the contract or agreement was executed or last modified. However,
further modifications, extensions, or waivers may not be made or granted relating to those
contracts or agreements, except computations by the Department of Revenue of the income
generated by or arising out of a qualifying project.
Section 13 amends s. 220.193, F.S., regarding the Florida renewable energy production credit, to
conform to changes made by the bill.
Section 14 amends s. 288.9606, F.S., relating to the issue of revenue bonds, to conform to
changes made by the bill.
Section 15 amends s. 380.0651, F.S., relating to statewide guidelines, standards, and exemptions,
to conform to changes made by the bill.
Section 16 amends s. 403.9405, F.S., to provide 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 17 amends s. 720.3075, F.S., which relates to prohibited clauses in homeowners’
association documents. The section provides that homeowners’ 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 entities to customers within the homeowners’ association that these entities are
authorized to serve:
Investor-owned electric utilities;
Municipal electric utilities; BILL: CS/CS/SB 1624 Page 32
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,
139
including a stove or grill,
which uses the types or fuel source of energy productions which may be used, delivered,
converted, or supplied by the entities above.
Section 18 requires the PSC to conduct an assessment, in consultation with the DEM, 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 PSC to provide access to all
information necessary to conduct the assessment. The bill requires the PSC, by July 1, 2025, to
submit a report of its assessment to the Governor, the President of the Senate, and the Speaker of
the House of Representatives. The report must also contain any recommendations for potential
legislative or administrative actions that may enhance the physical security or cyber security of
the state's electric grid or natural gas facilities.
Section 19 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 in partnership with public utilities. In
conducting this study, the PSC is to consult with the FDOT and the DEM. 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 April 1, 2025. The findings and recommendations must be consistent with the
goals proposed in s. 377.601(2), F.S., provided in Section 7 of the bill.
Section 20 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 April 1, 2025. The findings and recommendations must be
consistent with the goals proposed in s. 377.601(2), F.S., provided in Section 7 of the bill.
Section 21 provides that the bill shall take effect July 1, 2024.
139
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/CS/SB 1624 Page 33
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 17 of the bill prohibits homeowners’ associations, in their governing documents,
from disallowing certain types or fuel sources of energy production and appliances that
use such fuels in their governing documents. If this provision was to apply retroactively
to existing homeowners’ association documents, it may raise an issue under the contracts
clause of Florida’s Constitution.
Under Florida law, statutes are presumed to operate prospectively, not retroactively. In
other words, statutes generally apply only to actions that occur on or after the effective
date of the legislation, not before the legislation becomes effective.
The Florida Supreme Court has noted that, under the rules of statutory construction, if
statutes are to operate retroactively, the Legislature must clearly express such an intent
for the statute to be valid.
140
When statutes that are expressly retroactive have been
litigated and appealed, the courts have been asked to determine whether the statute
applies to cases that were pending at the time the statute went into effect. The conclusion
often turns on whether the statute is procedural or substantive.
The Florida Supreme Court has acknowledged that “[t]he distinction between substantive
and procedural law is neither simple nor certain.”
141
The Court further acknowledged that
its previous pronouncements regarding the retroactivity of procedural laws have been less
than precise and have been unclear.
142
Courts, however, have invalidated the retroactive application of a statute if the statute
impairs vested rights, creates new obligations, or imposes new penalties.
143
Still, in other
140
Walker & LaBerge, Inc., v. Halligan, 344 So. 2d 239 (Fla. 1977).
141
Love v. State, 286 So. 3d 177, 183 (Fla. 2019) quoting Caple v. Tuttle’s Design-Build, Inc., 753 So. 2d 49, 53 (Fla. 2000).
142
Love, supra note 141 at 184.
143
R.A.M. of South Florida, Inc. v. WCI Communities, Inc., 869 So. 2d 1210 (Fla 2004). BILL: CS/CS/SB 1624 Page 34
cases, the courts have permitted statutes to be applied retroactively if they do not create
new, or take away, vested rights, but only operate to further a remedy or confirm rights
that already exist.
144
Florida’s contracts clause states that “no bill of attainder, ex post facto law or law
impairing the obligation of contracts shall be passed.”
145
Regarding the impairment of an
existing contract by the retroactive application of a statute, the Florida Supreme Court
recently said:
“[V]irtually no degree of contract impairment is tolerable.” However, we
also recognized that the holding that “virtually” no impairment is tolerable
“necessarily implies that some impairment is tolerable.” The question thus
becomes how much impairment is tolerable and how to determine that
amount. To answer that question, in Pomponio we proposed a balancing
test that “allow[ed] the court to consider the actual effect of the provision
on the contract and to balance a party’s interest in not having the contract
impaired against the State’s source of authority and the evil sought to be
remedied.” “[T]his becomes a balancing process to determine whether the
nature and extent of the impairment is constitutionally tolerable in light of
the importance of the State’s objective, or whether it unreasonably
intrudes into the parties’ bargain to a degree greater than is necessary to
achieve that objective.”
An impairment may be constitutional if it is reasonable and necessary to serve an
important public purpose. However, where the impairment is severe, “[t]he severity of
the impairment is said to increase the level of scrutiny to which the legislation will be
subjected.” There must be a “significant and legitimate public purpose behind the
regulation.”
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
144
Ziccardi v. Strother, 570 So. 2d 1319 (Fla. 1990).
145
FLA. CONST. art. I, s. 10.
146
Searcy, Denney, Scarola, Barnhart & Shipley, etc. v. State, 209 So. 3d 1181, 1192 (Fla. 2017) (internal citations omitted
for clarity). BILL: CS/CS/SB 1624 Page 35
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.
C. Government Sector Impact:
The bill may have an indeterminate negative fiscal impact on state government
expenditures because it imposes new requirements for specified state agencies, which
may require the expenditure of resources. The directives of the bill likely expands the
responsibilities of the following state agencies:
Department of Management Services – due to the development of a Florida Humane
Preferred Energy Products List;
The Public Service Commission (PSC) – due to the assessment of the security and
resiliency of the state’s electric grid and natural gas facilities;
PSC – due to the study and evaluation of advanced nuclear power technologies;
The Department of Agriculture and Consumer Services (DACS) – due to revised
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.;
The Department of Environmental Protection – required to review all applications for
federal wind energy leases in the territorial waters of the United States adjacent to
Florida and signify its approval or objection to each application; and
Florida Department of Transportation – due to the study and evaluation of potential
development of hydrogen fueling infrastructure.
Most of the above agencies have not yet provided their analyses of this bill, so it is
unknown at this time the extent to which the bill would impact those agencies’
operations. Affected agencies may be able to satisfy all or some of these requirements
with existing resources. For example, the DMS may incur additional workload for the
development of the Florida Humane Preferred Energy Products Lists; however, according
the DMS, such workload can be absorbed within the current resources of the DMS. The
impact of requiring state agencies to purchase certain energy-related items from a new
Florida Humane Preferred Energy Products List, as required by the bill, is indeterminate.
The PSC, in its analysis of SB 1548, stated that implementing a similar provision in that
bill to Section 19 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.
147
Historically, traditional studies cost approximately $200,000 to $300,000.
147
Florida Public Service Commission, Bill Analysis for SB 1548, supra note 80. BILL: CS/CS/SB 1624 Page 36
VI. Technical Deficiencies:
Section 4 of the bill uses the term “electric cooperatives;” however, the terminology used in ch.
366, F.S. to refer to a cooperative organized and existing under the Rural Electric Cooperative
Law is “rural electric cooperative.”
VII. Related Issues:
Section 3 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 4 of the bill does not define the term “mutual aid agreement” or “pre-event agreement”
and these terms are not used elsewhere in ch. 366, F.S. The sponsor may wish to provide a
definition or requirement of what constitutes such an agreement. Also, as described in the
Present Situation portion of this analysis, municipal electric utilities and rural electric
cooperatives generally enter into a mutual aid network and not individual agreements with other
utilities. Section 4 may not contemplate that such agreements would qualify under the
requirements.
Section 10 of the bill requires the Department of Environmental Protection to “review all
applications for federal wind energy leases in the territorial waters of the United States adjacent
to waters of this state and shall signify its approval of or objection to each application. The
section also does not provide on which basis the DEP is to review applications.” In addition,
under current federal regulations, wind energy leases are generally granted by a competitive
bidding process under 30 C.F.R. 585.210-216, managed by the Bureau of Ocean Energy
Management (BOEM). There is also a process for non-competitive leases when there is no
competitive interest in a proposed area. Under 30 C.F.R. 580.211, state participation is
contemplated when identifying areas for consideration to be leased and, once BOEM issues a
proposed sale notice before an auction sale, an affected state is notified and there is a 60 day
comment period.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 286.29, 366.032,
366.94, 377.601, 377.6015, 377.703, 220.193, 288.9606, 380.0651, 403.9405, and 720.3075.
This bill creates the following section of the Florida Statutes: 163.3210, 366.042, 366.99,
377.708 and several undesignated sections of law.
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. BILL: CS/CS/SB 1624 Page 37
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Appropriations Committee on Agriculture, Environment, and General
Government on February 20, 2024
The committee substitute:
Regarding the Florida Humane Preferred Products List, revises the capacity of energy
storage devices and energy generation devices that qualify for the provision
requirements in the bill.
Deletes 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.
Deletes 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 requiring the Public Service Commission (PSC) to create targeted
storm reserve amounts for public utilities.
Creates a provision requiring all electric cooperatives and municipal electric utilities
to enter into and maintain certain mutual aid agreements and submit an annual
attestation to qualify to receive state financial assistance for disaster recovery.
Deletes a provision authorizing the PSC to establish an experimental mechanism to
facilitate energy infrastructure investment.
Revises a provision permitting the PSC to approve voluntary public utility programs
for residential, customer-specific electric vehicle (EV) charging to amend the types of
vehicles eligible for the programs and deletes requirements that an EV charging
program may not adversely impact ratepayers and that revenue from a program must
be credited to ratepayers. The amendment also adds a requirement that ratepayers will
not pay to support the recovery of EV charging investments.
Regarding a provision in the bill revising legislative intent regarding energy resource
planning and development policies for Florida, the amendment adds cost-
effectiveness. The amendment also deletes “ensuring consumer choice” from the
updated energy policy goals and adds “reliability and security” to state policies.
Deletes a requirement in s. 377.703, F.S., that the Department of Agriculture and
Consumer Services to establish goals and strategies for increasing the use of
renewable energy.
Creates a provision prohibiting:
o The construction, operation, or expansion of an offshore wind energy facility in
the state;
o Construction or operation of wind turbine within 1 mile of the state coastline; and
o Construction or operation of a wind turbine in state waters or submerged lands.
Creates a provision requiring the Department of Environmental Protection (DEP) to
review federal wind energy lease applications and signify DEP’s approval or
objection. BILL: CS/CS/SB 1624 Page 38
Deletes a provision in the bill directing the Florida Department of Commerce to
expand eligibility for the Low-Income Energy Assistance Program (LIHEAP) to
persons in certain federal disability programs and develop a process for automated
LIHEAP payments to home energy suppliers.
Extends due dates for certain reports that the bill requires the PSC and DOT to
submit.
Creates new consultation requirements for provisions in the bill requiring the PSC to
assess the state’s electric grid and study small modular reactors.
Makes technical and conforming changes..
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.
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 BILL: CS/CS/SB 1624 Page 39
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.