The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/CS/SB 896
INTRODUCER: Rules Committee; Regulated Industries Committee; and Senators Brodeur and Hutson
SUBJECT: Renewable Energy
DATE: April 21, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Sharon Imhof RI Fav/CS
2. Anderson Rogers EN Favorable
3. Sharon Phelps RC Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 896 creates s. 163.3205, F.S., relating to the solar facility approval process. The bill
defines a “solar facility,” as a production facility for electric power, which uses photovoltaic
modules1 to convert solar energy to electricity that may be stored on site, delivered to a
transmission system, and consumed primarily offsite. It further provides the components of a
solar facility.
The bill requires solar facilities to be a permitted use in all agricultural land use categories in a
local government’s comprehensive plan, all agricultural zoning districts within an
unincorporated area.
The bill requires facilities to comply with setback and landscaped buffer area criteria for similar
uses in the agricultural district and allows a county to adopt ordinances specifying buffer and
landscaping requirements for facilities. Such requirements may not exceed those of similar uses
involving construction of other facilities permitted in agricultural land use categories and zoning
districts.
The bill amends s. 366.91, F.S., by adding the terms “biogas” and “renewable natural gas,” and
expanding the term “renewable energy.”
1
“Photovoltaic modules” colloquially referred to as are solar panels. They are units comprised of several photovoltaic cells,
intended to generate direct current power under un-concentrated sunlight. See Open Energy Information, Definition: PV
module, https://openei.org/wiki/Information (last visited Apr. 21, 2021).
BILL: CS/CS/SB 896 Page 2
The term “biogas” means a mixture of gases, largely comprised of carbon dioxide, hydrocarbons,
and methane gas, that is produced by the biological decomposition of organic materials.
The term “renewable natural gas” (RNG) means anaerobically generated biogas, landfill gas, or
wastewater treatment gas, which is refined to a methane content of 90 percent or more, that may
be used as transportation fuel, for electric generation, or is of a quality capable of being injected
into a natural gas pipeline.
The term “renewable energy,” is expanded to mean electrical energy produced from a method
that uses one or more of the following fuels or energy sources: hydrogen produced or resulting
from energy sources other than fossil fuels, biomass, solar energy, geothermal energy, wind
energy, ocean energy, and hydroelectric power.
The bill provides that the Public Service Commission (PSC) may approve cost recovery by a gas
public utility for RNG purchase contracts, in which the pricing provisions exceed the current
market price of natural gas, but which are otherwise deemed reasonable and prudent by the PSC.
The bill is effective on July 1, 2021.
II. Present Situation:
Renewable Natural Gas and Biogas
Natural gas is a fossil energy source which forms beneath the earth’s surface.2 Natural gas
contains many different compounds, the largest of which is methane.3 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 refined to use in place of conventional natural gas.4
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.5 Raw biogas has a methane content
between 45 and 65 percent.6 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.7 After this process, the nitrogen and oxygen content is reduced and the RNG has
2
U.S. Energy Information Administration, Natural gas explained, https://www.eia.gov/energyexplained/natural-gas/
(last visited Apr. 21, 2021).
3
U.S. Environmental Protection Agency (EPA), An Overview of Renewable Natural Gas from Biogas (July 2020), available
at https://www.epa.gov/sites/production/files/2020-07/documents/lmop_rng_document.pdf (last visited Apr. 21, 2021).
4
EPA, Landfill Methane Outreach Program (LMOP): Renewable Natural Gas, https://www.epa.gov/lmop/renewable-
natural-gas (last visited Apr. 21, 2021).
5
Id.
6
Id.
7
Florida Department of Agriculture and Consumer Services (DACS), Bill Analysis for SB 896 (Feb. 15, 2021) (on file with
the Senate Committee on Environment and Natural Resources).
BILL: CS/CS/SB 896 Page 3
a methane content of 90 percent or more.8 RNG prepared for injection into a natural gas pipeline
typically has a methane content between 96 and 98 percent.9
The expansion of RNG offers an opportunity to decarbonize traditional gas end uses such as
transportation and heating.10 RNG qualifies as an advanced biofuel under the Federal Renewable
Fuel Standard Program.11 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.12
Nationally, there were 157 total confirmed operational RNG projects as of December 2020.13
While there were at least two RNG projects reportedly under construction in Florida at the end of
2020, it is not confirmed whether any operational production has been achieved in the state.14
Florida Public Service Commission
Chapter 366, F.S., provides for the regulation of electric utilities by the Florida Public Service
Commission (PSC). The PSC is an arm of the legislative branch of government and has rate-
setting jurisdiction over electric and natural gas public utilities.15 The role of the PSC is to ensure
that Florida’s consumers receive utility services, including electric, natural gas, telephone, water,
and wastewater, in a safe, affordable, and reliable manner.16 In order to do so, the PSC exercises
authority over public utilities in one or more of the following areas: (1) rate or economic
regulation; (2) market competition oversight; and/or (3) monitoring of safety, reliability, and
service issues.17 The PSC monitors the safety and reliability of the electric power grid18 and may
order the addition or repair of infrastructure as necessary.19 Further, the PSC reviews
applications to determine the need for certain new electrical power plants20 and certain large
transmission lines as part of the Department of Environmental Protection’s siting process.21
A public utility includes any person or legal entity supplying electricity or gas, including natural,
manufactured, or similar gaseous substance, to or for the public within the state.22 Notably,
courts have ruled that the sale of electricity to even a single customer makes the provider a
“public utility,” subjecting them to the PSC’s regulatory jurisdiction, under s. 366.02(1), F.S.23
8
EPA, LMOP: Renewable Natural Gas, supra at n. 4.
9
Id.
10
DACS, Bill Analysis, supra at n. 7.
11
Id.
12
EPA, Renewable Fuel Standard Program, https://www.epa.gov/renewable-fuel-standard-program (last visited
Apr. 21, 2021).
13
DACS, Bill Analysis, supra at n. 7.
14
Id.
15
See ss. 350.001, 366.02, and 366.05, F.S.
16
See Florida Public Service Commission (PSC), The PSC’s Role, http://www.psc.state.fl.us (last visited Apr. 21, 2021).
17
Id.
18
Sections 366.04(5) and (6), F.S.
19
Sections 366.05(1) and (8), F.S.
20
Section 403.519, F.S.
21
Section 403.537, F.S.
22
Section 366.02(1), F.S.
23
Florida Public Service Com’n v. Bryson, 569 So. 2d 1253, 1255 (Fla. 1990) (finding that even a property management
company is a public utility within the PSC’s regulatory jurisdiction); PW Ventures, Inc. v. Nichols, 533 So. 2d 281, 284 (Fla.
BILL: CS/CS/SB 896 Page 4
The PSC’s jurisdiction over public utilities is exclusive and superior to all other boards, agencies,
political subdivisions, municipalities, towns, villages, or counties, and in cases of conflict, the
PSC is to prevail.24
Investor-Owned Electric Utilities Companies
There are five investor-owned electric utility companies in Florida: Florida Power & Light
Company, Duke Energy Florida, Tampa Electric Company, Gulf Power Company, and Florida
Public Utilities Corporation.25 Investor-owned electric utility rates and revenues are regulated by
the PSC.26 These utilities must file periodic earnings reports, either monthly, quarterly, or semi-
annually, depending upon each company’s size. These more frequent company filings allow the
PSC to monitor earnings levels on an ongoing basis and adjust customer rates quickly if a
company appears to be overearning.27
Municipally-Owned Electric Utilities
A municipal electric utility is an electric utility system owned or operated by a municipality
engaged in serving residential, commercial or industrial customers, usually within the boundaries
of the municipality.28 Municipally-owned utility rates and revenues are regulated by the
applicable city commission.29 As noted above, the PSC has limited jurisdiction over municipally-
owned electric utilities.30 There are 34 municipal electric companies in Florida.31 Most municipal
electric utilities are represented by the Florida Municipal Electric Association, which serves over
three million Floridians.32
Natural Gas Utilities
Florida’s natural gas network is comprised of four interstate pipelines and two intrastate
pipelines.33 These pipelines supply natural gas to five investor-owned natural gas utilities, 27
municipal natural gas utilities, and four special gas districts.34 The PSC has regulatory authority
over: investor-owned natural gas utilities in all aspects of operations, including safety;
municipally-owned natural gas utilities, limited to safety and territorial boundary disputes; and
special gas districts, limited to safety and territorial boundary disputes.35
1988) (finding that “to the public,” as used in ch. 366, F.S., means “to any member of the public,” rather than “to the general
public”).
24
Section 366.04(1), F.S.
25
DACS, Electric Utilities, https://www.fdacs.gov/Energy/Florida-Energy-Clearinghouse/Electric-Utilities (last visited
Apr. 21, 2021).
26
Id.
27
Florida Public Service Commission, 2020 FPSC Annual Report, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/General/Annualreports/2020.pdf (last visited Apr. 21, 2021).
28
DACS, Electric Utilities, supra at n. 25.
29
Id.
30
PSC, 2020 Annual Report, supra at n. 27.
31
DACS, Electric Utilities, supra at n. 25.
32
Florida Municipal Electric Association, About FMEA, https://www.publicpower.com/about-us (last visited Apr. 21, 2021).
33
DACS, Natural Gas Utilities, https://www.fdacs.gov/Energy/Florida-Energy-Clearinghouse/Natural-Gas-Utilities (last
visited Apr. 21, 2021).
34
Id.
35
Chapter 366, F.S. See also, FPSC, 2020 Annual Report, supra at n. 27.
BILL: CS/CS/SB 896 Page 5
Public Utility Regulatory Policies Act
In 1978, the federal government enacted the Public Utility Regulatory Policies Act (PURPA).36
The PURPA requires promotion of energy efficiency and use of renewable energy.37 Primarily,
the PURPA was enacted to encourage:
The conservation of electric energy;
Increased efficiency in the use of facilities and resources by electric utilities;
Equitable retail rates for electric consumers;
Expeditious development of hydroelectric potential at existing small dams;
Conservation of natural gas while ensuring that rates to natural gas consumers are
equitable.38
The PURPA requires utilities to interconnect with and purchase power from “qualifying
facilities,” which fall into two categories: (1) qualifying small power production facilities and (2)
qualifying cogeneration facilities.39 Qualifying small power production facilities must produce
less than 80 megawatts and use biomass, waste, renewable resources, geothermal resources, or
any combination thereof, of which 75 percent or more of the total energy input must be from
these sources.40 Qualifying cogeneration facilities are entities that generate electricity as a
byproduct of an industrial process, which is not intended fundamentally for sale to an electric
utility.41
The PURPA directed the Federal Energy Regulatory Commission (FERC) to implement its
provisions, which in turn, directed the states to implement these provisions. In response, the
Legislature created s. 366.051, F.S., directing utilities to purchase power from cogenerators and
small power producers and defining “full avoided costs.”42 “A utility’s ‘full avoided costs’ are
the incremental costs to the utility of the electric energy or capacity, or both, which, but for the
purchase from cogenerators or small power producers, such utility would generate itself or
purchase from another source.”43 Traditionally, the FERC has approved electric utilities power
purchase contracts that include provisions for payment, capacity, and energy based upon either
the utility’s cost to construct and operate its next planned generating unit or the cost of
purchasing capacity and energy from generating units owned by other utilities in the interchange
market.44
36
Public L. No. 95-617 (HR 4018)(1978).
37
Id.
38
Federal Energy Regulatory Commission, PURPA Qualifying Facilities, https://www.ferc.gov/qf (last visited
Apr. 21, 2021).
39
Id.
40
18 C.F.R. 292.204.
41
18 C.F.R. 292.205.
42
Ch. 89-292, Laws of Fla.
43
Section 366.051(3) and (4), F.S.
44
PSC, States’ Electric Restructuring Activities Update: Wholesale Sales
http://www.psc.state.fl.us/Publications/ElectricRestructuringDetails#4 (last visited Apr. 21, 2021); PSC, States’ Electric
Restructuring Activities Update: Federal Legislation - Public Utilities Regulatory Policy Act
http://www.psc.state.fl.us/Publications/ElectricRestructuringDetails#5 (last visited Apr. 21, 2021).
BILL: CS/CS/SB 896 Page 6
Renewable Energy
In 2005, the Legislature created s. 366.91, F.S., to address renewable energy.45 This section
requires utilities to continuously offer a purchase contract to renewable energy producers for a
minimum of 10 years and contains payment provisions for energy and capacity based upon the
utility’s full avoided costs.46 It also includes municipal electric utilities and rural electric
cooperatives whose annual sales exceed 2,000 gigawatt hours.47 The term “renewable energy”
means electrical energy produced from:
Hydrogen produced from sources other than fossil fuels;48
Biomass,
Solar energy,
Geothermal energy,
Wind energy,
Ocean energy,
Hydroelectric power, and
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.49
Land Use Implications of Different Forms of Energy Production
A utility-scale solar generation system requires larger quantities of land per unit of power
produced than traditional power plants.50 Solar generation facilities require “at least [ten] times
as much land per unit of power produced than coal or natural gas-fired power plants.”51 As a
result of the large scale nature of such projects and the fact that they must be located in a place
where the natural resource is most