Floridians For Feed In Tariffs (Renewable Energy Payments)

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Comment by Faye on January 22, 2009 at 6:56pm

Hi Roy!! ;)

CONFERENCE IN TALLAHASSEE FEBRUARY 3rd, 2009!

The Florida Alliance for Renewable Energy (FARE), with support from the Florida Municipal Electric Association (FMEA) and the Alliance for Renewable Energy (ARE) are pleased to invite you to join us for a discussion on:

Effective Renewable Energy Policies: Stimulating Job Creation, Long Term Investments, and Improving Energy Security

Featuring discussions on Feed in Tariffs, Net Metering, Rebates, and Gainesville, FL., the first municipality in the United States to introduce a Feed in Tariff policy.

Tuesday, February 3rd, 2009
12-7 pm in Tallahassee
Doubletree Hotel
101 South Adams Street
Tallahassee, FL 32301
(850) 224-5000

The focus of the conference is the deployment of renewable energy in Florida resulting in jobs and energy security. Experts from around the world and participants from various stakeholder organizations will discuss policies to stimulate vast investment in renewable energy to increase energy security and job creation in Florida. Building on Governor Crist’s vision of 20% renewables by 2020, this event will provide first hand experiences from Florida, other states and European countries on what policies are most effective in achieving renewable targets.

Solar on every rooftop!

Panels will include:
· ‘Lessons from Europe and US States’ – Deployment of successful renewable policies.
· Costs vs. Benefits – The potential opportunity if policies are right.
· What energy policies will drive the market and bring jobs to Florida?
· Florida based implementation.
· Legislative Roundtable.

Key objectives:
· Explore green jobs and long term investments.
· Discuss Renewable Energy Payments, also known as Feed in Tariffs, regarding their significant potential to address climate change, create new jobs and support the renewable energy industry
· Further develop policies that have driven the clean technology markets.
· Update on the Renewable Portfolio Standard rules from the PSC.
· Strengthen and Support legislative initiatives in Florida.
· Explore various levels of initiatives adopted by utilities.
· Build coalitions and network.
· The Gainesville Solar Feed in Tariff.

Who will attend: State legislators, environmental and energy advocates, renewable energy industry representatives,local and state utilities, local government officials interested in green job economic development, nonprofits and foundations committed to a renewable energy future.

Speakers will include: leading environmental organizations, Florida State legislators, investors, renewable energy industry organizations and leading energy companies.

Featuring:
· Gainesville Mayor Pegeen Hanrahan
· Florida State Representative Keith Fitzgerald
· Paul Gipe, Alliance for Renewable Energy
· Toby Couture, National Renewable Energy Laboratory
· Dr. Murray Cameron, Phoenix Solar
· Jerry Karnas, Environmental Defense Fund
· Barry Moline, Florida Municipal Electric Association
· Ed Regan, Gainesville Regional Utilities
· Christy Herig, Solar Electric Power Association
· Jerome Guillet, Head of Energy, Dexia

For registration and hotel info on this event please contact Faye Roller at faye@FAREnergy.org or visit www.FAREnergy.org

Comment by Roy R on December 9, 2008 at 4:19am

My name is Roy Ratner, and I represent Atlas Solar Innovations and the Florida Alliance for Renewable Energy - (FARE).
Atlas Solar Innovations is a subsidiary of All Atlas Roofing of South Florida. We are distributors, designers and installers of Photovoltaic (PV), Domestic Hot Water (DHW), and Solar pool heating Systems for both residential and commercial properties. We cofounded the Florida Alliance for Renewable Energy - (FARE) for the promotion of renewable energy policies that will permit every individual, business and organization in the state of Florida the opportunity to become independent producers and sellers of all forms of renewable energy. We are very committed to be a part of this movement toward a healthy environment, future energy independence, and economic prosperity for the state of Florida.
Our Association endorses and promotes the adoption of the renewable energy policy that is proven to be the most successful and efficient renewable energy policy in the world. This policy mechanism is responsible for 50% of the world's renewable energy deployment in the past few years. Currently 45 countries worldwide utilize this simple, transparent policy. By adopting this policy, Floridians will be able to deliver renewable energy more rapidly and for less cost by including the participation of everyone; homeowners, business owners, churches, schools, farmers and others. Currently Hawaii, Oregon, California, Illinois, Minnesota, Michigan, Rhode Island and the city of Gainesville Florida are in the process of adopting this policy mechanism.
Germany, the first European country to implement this policy, is a great example of this renewable energy deployment success.
As a direct result of this policy, renewable energy accounts for 14% of Germany's energy supply as of 2007.They are targeting 27% by 2020, and 45% by 2030. They have 70,000 employed in the wind industry, 50,000 employed in the PV industry, 8,000 employed in the biogas industry. With a total of 250,000 people employed in the renewable energy industry. Germany’s policy success produces a $30 billion turnover and a net benefit of $9 billion annually. This simple policy levels the playing field for all producers and sellers of renewable energy.
It is imperative that we participate in the environmental and economic gift that renewable energy gives us.
We have the opportunity to create a widespread home-grown industry, the chance to spare the environment further damage, create thousands of local jobs, collect millions in local revenue, and establish Floridian generated energy independence.

Do not let Florida miss this renewable energy boom, bring it home, and bring it to Florida
At The Florida Alliance for Renewable Energy we firmly endorse the policy of Renewable Energy Payments (REP’s) also known as Feed- in Tariffs (FIT’s) to be the single most effective way to achieve widespread rapid deployment of renewable energy in Florida.
Please join us and help others to understand the necessity of this policy adoption for the future of state of Florida @ www.farenergy.org.

Thank you,
Roy Ratner
Atlas Solar Innovations 1-877-299 –Solar
www.Atlas -solar.com
rr @Atlas -solar.com

Comment by Roy R on December 5, 2008 at 1:02pm

Job Creation, Energy Independence, Environmental Stewardship

The energy market has dominated headlines for as long as can be remembered. As we climb our way out of the current economic cycle, new leaders are created and new industries will lead the way back to a strong, robust economy. Those who look to the future of the energy market know that Renewable Energy is an industry that is boiling over with potential. A growing new Renewable Energy industry in Florida will create untold thousands of jobs, collect millions in local tax revenues, and bring us to the forefront of the national stage on energy independence and environmental stewardship.
Renewable Energy Payments are a policy mechanism that have proven to promote the fastest, cheapest, and most widespread growth of Renewable Energy anywhere in the world, with implementation in over 45 countries. Currently at least 8 states in the U.S. are considering a Renewable Energy Payment (also known as Feed in Tariff) policy mechanism. Today the State of Florida is positioning itself ahead of the curve and providing a beacon for the rest of the country to follow by considering this policy mechanism.
A Renewable Energy Payment (REP) provides a fixed contract to the producers of Renewable Energy. The contracts, which are fixed for typically twenty years, afford the producer the ability to borrow against a mandated, guaranteed payment from their utility company. Also, these contracts, which are transparent, simple to understand, and open for inspection, include long-term agreed upon prices that the utility company will pay the producers for the energy it buys. The prices are set high enough to be an incentive to new producers and encourage existing producers to maximize their capacity.
The key components to a proven successful REP model:
• Anyone can access the grid, democratizing the new market and allowing anyone to produce renewable energy.
• All producers will receive a fixed payment, at reasonable rate of return, for a fixed period of time, typically 20 years, for the renewable energy that they produce.
• There is no limit to the amount of renewable energy that can be produced.
• The contracts are transparent and simple to understand.
With these features included in the design, a Renewable Energy Payment policy would create a stable and competitive renewable energy marketplace. Imagine if homes, churches, schools, hospitals, condo associations and ranchers could all install solar, wind and other renewable energy sources on their rooftops or land and then produce energy and sell it to the utilities for profit.... It could completely transform our economic landscape. Floridians are owed the chance to participate in the Renewable Energy market with a level playing field, and Renewable Energy Payments are the single most effective way to make sure this happens.



The key results of a REP market include:

• Job Creation. All levels of jobs are created including high-skilled positions in engineering, manufacturing, agriculture, and electronics. Jobs in banking and finance, breathing life in to a lending industry.

• Stability and Investment Security. REP incentives also have massive appeal to investors and lenders. Unlike Renewable Energy Certificates (RECs) which have annually fluctuating values through a trading mechanism, REP incentives never change and never require any administration or additional cost. As long as the RE system is generating electricity it continues to make the system owner a guaranteed return on their investment.

• Stay at home revenue. With REPS, the revenue from producing renewable energy will stay in the county and state where it is produced. This will create "local wealth" and stimulate the local economy.

• Equality. REPs create a level playing field for all different sizes of renewable energy producers. It encourages individuals, small businesses and larger businesses to become renewable energy producers and rewards them all.

• Reduce Carbon Output. Burning fossil fuels releases 75% of the greenhouse gases that are heating the planet. It is estimated that by switching to renewable energy we can cut CO2 emissions in half by 2030.

• Stabilize Energy Costs. Communities that use locally produced renewable energy have more stable energy costs. Once the systems are set up, their renewable fuels such as sun and wind are low cost or free. Overall, energy costs will be more predictable and controllable, creating economic stability.

• Create Energy Security. Renewable energy production will lesson a community’s or nation’s vulnerability to increasing fossil fuel prices and will increase self-reliant economic growth. Those who install renewable energy the soonest will save the most. The costs for renewable energy are expected to decline due to economy of scale and technological progress.





REPs Basic Steps


1. Priority access to the grid over conventional fuel sources [prevents gaming from utilities inhibiting grid access] within [60] days for all systems

2. Purchase guarantee with standard offer contracts (SOC) with the local utility standardized by the Public Service Commission. Contracts shall be 20 years fixed price with an inflation escalator [makes projects financeable with low cost debt versus expensive equity – target should be >70% debt for most technologies]

3. The SOC will be the broadly the same for all system sizes under 20MW – with the intent that the SOC provides a speedy transparent method for a RE producer to sell power to the utility

4. Pricing will be determined by the PSC but would be based on cost plus reasonable profit
a. To mimic the regulatory returns that regulated utilities currently enjoy in Florida for fossil generation projects.
b. Pricing to be differentiated by system size to factor in economies of scale that typically reduce installed costs for larger systems
c. We recommend that the PSC include in its calculation of return all federal ITC and other benefits such as accelerated depreciation.
d. A pricing digression methodology would be employed whereby every [2 years] the PSC can alter prices for new RE producers to factor in changes in costs
e. REPs by utilities for RE would be allowed to be recovered in the normal regulatory adjustment mechanism via a RE surcharge that would be allocated to each customer bill. The surcharge would be allocated by the PSC state wide to ensure that all customers pay for RE not just those customers of any one IOU
















Renewable Energy Payments


REPs are a simple, elegant, and cost-effective mechanism for supporting large-scale RE deployments in aggressive timelines. Germany alone has deployed 12 times the RE as the US since 2001, even though they have 1/7th the population and have ¼ the renewable resources for solar and wind (RE breakdown: 46% wind, 24% biomass, 4% solar). The Germans have already achieved the implementation of RE which accounts for >15% of their total power generation resources.


Germany’s FIT Success Story (through 2007)
1. Total Grid Contribution:
a. Baseline of 6.6% in 2005
b. 15% achieved by 2007
c. New 27% goal by 2020
2. Wind: 20,000+ MW installed (30.5 TWh generated) [45%+ of market]
3. Solar: 5000+ MW installed (US had 250 MW in 2007) [4%+ of market]
4. Biomass: 27% of market
5. Hydro: 24% of market

Approximate Cost in Germany
1. ~$2.80 (USD) a month (price of a loaf of bread)
2. Total Policy Cost of $2.4. B dollars annually
3. Net Policy Benefit of $4.8 B dollars Annually


Benefits of the REP Policy
1. Costs the ratepayers ZERO ($0) if the market does not support
2. REQUIRES NO STATE GOVERNMENT ADMINISTRATION or tax credit support
3. Incentives are calculated around each RE technology’s cost structure and are adjusted on a set performance schedule
4. Supports all RE technologies equally or can be adjusted for weighted average
5. Will help lower grid electricity prices through widespread adoption of RE into the power mix with low/no fuel input costs over the long term
REP Policies – Overview

1. Florida should immediately begin to increase its proportion of solar and renewable energy. In doing so it will:

• Improve Florida’s energy security by reducing its dependence on imported fossil fuels
• Create a wealth machine from solar and renewable energy. New construction, installation, electrical, manufacturing and finance jobs emerge as we expand on and establish a vibrant solar and renewable industry in Florida
• Improve our environment now and for the future citizens of Florida

2. REPs greatly increase competition in the renewable electricity generating sector in Florida. REPs policies allow everyone to become a solar and renewable energy producer up to 20MW per project, encouraging residential, commercial and larger investment groups to invest in and participate in solar and other renewable energy production. Each producer is allowed to self generate renewable power and sell the power back to their local utility
3. Utilities have hitherto been reluctant to invest the time and resources in building out small scale renewables projects since it adds minimal benefit to their earnings per share. Conversely, smaller renewable projects are best done by households, local community groups (churches/schools), farmers and developers, commercial groups and renewables companies. These policies therefore encourage renewable generation competition, and allow for a more efficient matching of producer and renewable resources. REPs allow a vast deployment of sub 20MW solar and renewable energy projects by providing solar and renewable energy priority access to the transmission grid and requiring that the utilities buy whatever power is produced.
4. Cost – REPs require NO taxation, NO upfront state payments or subsidies; the cost of paying the renewables producers is passed through to all utility customers through the usual PSC rate recovery mechanism. Costs will only rise if these policies are successful in delivering rapid deployment of renewables. Caps can be introduced to manage the desired growth.
5. Market mechanism – the state policy framework allows the private sector and market forces to work and invest; unlike renewable energy credits, there is no need for any state administration.
6. The solar and renewable energy REPs policy requires that all solar and renewable energy generating technologies are part of the solution. It is required that all renewable energy technologies as defined in [section 366.91] Florida Statutes, become part of the comprehensive REPs policy.







Recent REP Headlines

Nov. 18th Rep. Law introduces a feed in style renewable energy project in Michigan

Nov. 12th Gainesville Moves Forward on Feed-in Tariff

Nov. 7th. "Nov 4th" was a great day for Renewable Energy

Oct. 20th: Florida conference looks at German solar experience

Minnesota Renewable Energy Feed-In Tariff Bill

Illinois: Renewable Energy Feed-in Tariff Introduced in House of Representatives

Feed-in Tariff for California First

Germany sets shining example in providing a harvest for the world

Solar World expands in Orgeon

Comment by Roy R on December 5, 2008 at 6:56am

Job Creation, Energy Independence, Environmental Stewardship

The energy market has dominated headlines for as long as can be remembered. As we climb our way out of the current economic cycle, new leaders are created and new industries will lead the way back to a strong, robust economy. Those who look to the future of the energy market know that Renewable Energy is an industry that is boiling over with potential. A growing new Renewable Energy industry in Florida will create untold thousands of jobs, collect millions in local tax revenues, and bring us to the forefront of the national stage on energy independence and environmental stewardship.
Renewable Energy Payments are a policy mechanism that have proven to promote the fastest, cheapest, and most widespread growth of Renewable Energy anywhere in the world, with implementation in over 45 countries. Currently at least 8 states in the U.S. are considering a Renewable Energy Payment (also known as Feed in Tariff) policy mechanism. Today the State of Florida is positioning itself ahead of the curve and providing a beacon for the rest of the country to follow by considering this policy mechanism.
A Renewable Energy Payment (REP) provides a fixed contract to the producers of Renewable Energy. The contracts, which are fixed for typically twenty years, afford the producer the ability to borrow against a mandated, guaranteed payment from their utility company. Also, these contracts, which are transparent, simple to understand, and open for inspection, include long-term agreed upon prices that the utility company will pay the producers for the energy it buys. The prices are set high enough to be an incentive to new producers and encourage existing producers to maximize their capacity.
The key components to a proven successful REP model:
• Anyone can access the grid, democratizing the new market and allowing anyone to produce renewable energy.
• All producers will receive a fixed payment, at reasonable rate of return, for a fixed period of time, typically 20 years, for the renewable energy that they produce.
• There is no limit to the amount of renewable energy that can be produced.
• The contracts are transparent and simple to understand.
With these features included in the design, a Renewable Energy Payment policy would create a stable and competitive renewable energy marketplace. Imagine if homes, churches, schools, hospitals, condo associations and ranchers could all install solar, wind and other renewable energy sources on their rooftops or land and then produce energy and sell it to the utilities for profit.... It could completely transform our economic landscape. Floridians are owed the chance to participate in the Renewable Energy market with a level playing field, and Renewable Energy Payments are the single most effective way to make sure this happens.



The key results of a REP market include:

• Job Creation. All levels of jobs are created including high-skilled positions in engineering, manufacturing, agriculture, and electronics. Jobs in banking and finance, breathing life in to a lending industry.

• Stability and Investment Security. REP incentives also have massive appeal to investors and lenders. Unlike Renewable Energy Certificates (RECs) which have annually fluctuating values through a trading mechanism, REP incentives never change and never require any administration or additional cost. As long as the RE system is generating electricity it continues to make the system owner a guaranteed return on their investment.

• Stay at home revenue. With REPS, the revenue from producing renewable energy will stay in the county and state where it is produced. This will create "local wealth" and stimulate the local economy.

• Equality. REPs create a level playing field for all different sizes of renewable energy producers. It encourages individuals, small businesses and larger businesses to become renewable energy producers and rewards them all.

• Reduce Carbon Output. Burning fossil fuels releases 75% of the greenhouse gases that are heating the planet. It is estimated that by switching to renewable energy we can cut CO2 emissions in half by 2030.

• Stabilize Energy Costs. Communities that use locally produced renewable energy have more stable energy costs. Once the systems are set up, their renewable fuels such as sun and wind are low cost or free. Overall, energy costs will be more predictable and controllable, creating economic stability.

• Create Energy Security. Renewable energy production will lesson a community’s or nation’s vulnerability to increasing fossil fuel prices and will increase self-reliant economic growth. Those who install renewable energy the soonest will save the most. The costs for renewable energy are expected to decline due to economy of scale and technological progress.





REPs Basic Steps


1. Priority access to the grid over conventional fuel sources [prevents gaming from utilities inhibiting grid access] within [60] days for all systems

2. Purchase guarantee with standard offer contracts (SOC) with the local utility standardized by the Public Service Commission. Contracts shall be 20 years fixed price with an inflation escalator [makes projects financeable with low cost debt versus expensive equity – target should be >70% debt for most technologies]

3. The SOC will be the broadly the same for all system sizes under 20MW – with the intent that the SOC provides a speedy transparent method for a RE producer to sell power to the utility

4. Pricing will be determined by the PSC but would be based on cost plus reasonable profit
a. To mimic the regulatory returns that regulated utilities currently enjoy in Florida for fossil generation projects.
b. Pricing to be differentiated by system size to factor in economies of scale that typically reduce installed costs for larger systems
c. We recommend that the PSC include in its calculation of return all federal ITC and other benefits such as accelerated depreciation.
d. A pricing digression methodology would be employed whereby every [2 years] the PSC can alter prices for new RE producers to factor in changes in costs
e. REPs by utilities for RE would be allowed to be recovered in the normal regulatory adjustment mechanism via a RE surcharge that would be allocated to each customer bill. The surcharge would be allocated by the PSC state wide to ensure that all customers pay for RE not just those customers of any one IOU
















Renewable Energy Payments


REPs are a simple, elegant, and cost-effective mechanism for supporting large-scale RE deployments in aggressive timelines. Germany alone has deployed 12 times the RE as the US since 2001, even though they have 1/7th the population and have ¼ the renewable resources for solar and wind (RE breakdown: 46% wind, 24% biomass, 4% solar). The Germans have already achieved the implementation of RE which accounts for >15% of their total power generation resources.


Germany’s FIT Success Story (through 2007)
1. Total Grid Contribution:
a. Baseline of 6.6% in 2005
b. 15% achieved by 2007
c. New 27% goal by 2020
2. Wind: 20,000+ MW installed (30.5 TWh generated) [45%+ of market]
3. Solar: 5000+ MW installed (US had 250 MW in 2007) [4%+ of market]
4. Biomass: 27% of market
5. Hydro: 24% of market

Approximate Cost in Germany
1. ~$2.80 (USD) a month (price of a loaf of bread)
2. Total Policy Cost of $2.4. B dollars annually
3. Net Policy Benefit of $4.8 B dollars Annually


Benefits of the REP Policy
1. Costs the ratepayers ZERO ($0) if the market does not support
2. REQUIRES NO STATE GOVERNMENT ADMINISTRATION or tax credit support
3. Incentives are calculated around each RE technology’s cost structure and are adjusted on a set performance schedule
4. Supports all RE technologies equally or can be adjusted for weighted average
5. Will help lower grid electricity prices through widespread adoption of RE into the power mix with low/no fuel input costs over the long term
REP Policies – Overview

1. Florida should immediately begin to increase its proportion of solar and renewable energy. In doing so it will:

• Improve Florida’s energy security by reducing its dependence on imported fossil fuels
• Create a wealth machine from solar and renewable energy. New construction, installation, electrical, manufacturing and finance jobs emerge as we expand on and establish a vibrant solar and renewable industry in Florida
• Improve our environment now and for the future citizens of Florida

2. REPs greatly increase competition in the renewable electricity generating sector in Florida. REPs policies allow everyone to become a solar and renewable energy producer up to 20MW per project, encouraging residential, commercial and larger investment groups to invest in and participate in solar and other renewable energy production. Each producer is allowed to self generate renewable power and sell the power back to their local utility
3. Utilities have hitherto been reluctant to invest the time and resources in building out small scale renewables projects since it adds minimal benefit to their earnings per share. Conversely, smaller renewable projects are best done by households, local community groups (churches/schools), farmers and developers, commercial groups and renewables companies. These policies therefore encourage renewable generation competition, and allow for a more efficient matching of producer and renewable resources. REPs allow a vast deployment of sub 20MW solar and renewable energy projects by providing solar and renewable energy priority access to the transmission grid and requiring that the utilities buy whatever power is produced.
4. Cost – REPs require NO taxation, NO upfront state payments or subsidies; the cost of paying the renewables producers is passed through to all utility customers through the usual PSC rate recovery mechanism. Costs will only rise if these policies are successful in delivering rapid deployment of renewables. Caps can be introduced to manage the desired growth.
5. Market mechanism – the state policy framework allows the private sector and market forces to work and invest; unlike renewable energy credits, there is no need for any state administration.
6. The solar and renewable energy REPs policy requires that all solar and renewable energy generating technologies are part of the solution. It is required that all renewable energy technologies as defined in [section 366.91] Florida Statutes, become part of the comprehensive REPs policy.







Recent REP Headlines

Nov. 18th Rep. Law introduces a feed in style renewable energy project in Michigan

Nov. 12th Gainesville Moves Forward on Feed-in Tariff

Nov. 7th. "Nov 4th" was a great day for Renewable Energy

Oct. 20th: Florida conference looks at German solar experience

Minnesota Renewable Energy Feed-In Tariff Bill

Illinois: Renewable Energy Feed-in Tariff Introduced in House of Representatives

Feed-in Tariff for California First

Germany sets shining example in providing a harvest for the world

Solar World expands in Orgeon

Comment by Roy R on November 18, 2008 at 9:15am

Florida Renewable Energy Freedom Act (or the Act Granting Priority to Renewable Energy Sources and Renewable Production Based Incentives)


Section 1
Act on granting priority to renewable energy sources
(Florida Renewable Energy Sources Act)
Article 1 Findings and Purpose

(1)The legislature finds that:

(a) the state has a vital interest in ensuring that its citizens have a reasonable opportunity to develop, own, and invest in renewable electricity/energy/energy generation;
(b) the economic benefits of local renewable energy development to Florida's economy are critical factors in state agency decision making regarding energy procurement and ratemaking;
(c) opportunities to own renewable electricity/energy/energy generation projects are particularly important to the future economic development and quality of life of the state's rural communities;
(d) the citizens of Florida have a vital interest in participating in the state's efforts to limit greenhouse gas emissions through the development and ownership of renewable electricity/energy/energy generation projects;
(e) the vast majority of Floridians are unable to benefit from the existing federal renewable energy tax credit and other financial incentives supporting renewable energy projects, and are therefore at a disadvantage relative to the large entities that are able to utilize these federal incentives; and
(f) development of renewable energy in Florida requires that the state provide
its citizens with an opportunity to sell power at a just and reasonable price to the utilities that serve them.

(2)The purpose of this act is to enable the rapid and sustainable development of Florida’s abundant renewable energy resources for the clean generation of electricity/energy.
(3)This act provides numerous benefits from the rapid development of renewable resources of electricity/energy generation for Florida citizens of today and those of tomorrow. These benefits include, but are not limited to

(a) Reducing the states reliance on imported energy for electricity/energy production,
(b) Improving the states energy security,
(c) Reducing the volatility of future electricity/energy prices,
(d) Reducing the long-term costs of electricity/energy,
(e) Opening electricity/energy generation from renewable resources to all citizens and encouraging competition,
(f) Providing equitable opportunity for all citizens to help increase the state’s renewable energy production levels,
(g) Protecting Florida’s atmosphere from air pollution and reducing the states greenhouse gas emissions,
(h) Protecting Florida’s natural resources,
(i) Placing Florida at the forefront of North America’s renewable energy revolution,
(j) Stimulating the development of new technologies, industry and jobs in Florida, and
(k) Creating a Florida marketplace for the development of renewable energy.

(4) This act is further intended to contribute to the increase in the percentage of renewable energy sources in electricity/energy supply to at least 5 per cent by 2011, at least 15% by 2015 and to at least 20 per cent by 2020. These are minimum targets and may be exceeded under this act.
(5) This act is further intended to simplify the awarding of contracts for the generation of electricity/energy with renewable resources and by doing so increase the transparency and equity of the electricity/energy generation system.

Article 2
Scope of application
(1) This act regulates
1. the priority of connections to the electricity/energy grid of plants generating electricity/energy from renewable energy sources, further providing that all such sources less than 50MW are considered an exempt wholesale generator and are as such exempt from regulation of the Florida Public Service Commission . and

2. the priority purchase and transmission of, and payment for, such electricity/energy by the grid operator or electricity/energy market regulator, and

3. a state-wide equalization system for distributing the cost of electricity/energy purchased by and paid for under the act among all electricity/energy consumers.

Article 3
Definitions
(1) Renewable energy sources shall mean hydropower, wind energy, solar energy, geothermal energy, energy from biomass including biogas, landfill gas, and sewage treatment plant gas as well as the biodegradable fraction of municipal and industrial waste as defined in section 366.91 Florida Statutes .

(2) Plant shall mean any independent technical facility generating electricity/energy from renewable energy sources. Several plants generating electricity/energy from equivalent renewable energy sources, if constructed within the application of this act and directly attached to building structures and commonly used installations technically required for operation shall be considered as one plant. This includes inverters, access ways, grid connections as well as measuring, administrative and control facilities in particular that are not technically required for such operation.

(3) Plant operator shall mean anyone who, notwithstanding the issue of ownership, uses the plant for the purpose of generating electricity/energy from renewable energy sources.

(4) Commissioning shall mean the first time a plant is put into operation, following establishment of operational readiness or its modernization, if modernization costs amount to at least 50 per cent of the investment costs required to build a completely new plant including all building structures and installations technically required for its operation.

(5) Capacity of a plant shall mean the effective electrical capacity that the plant may technically produce without time restrictions during regular operation irrespective of short-term deviations. When the relevant capacity is determined to calculate the PBIs paid under the act, the standby capacity shall not be considered.

(6) Grid system shall mean all the interconnected facilities used for the transmission and distribution of electricity/energy for general supply.

(7) Grid system operators shall mean the operators of all types of voltage systems for general electricity/energy supply.

(8) Production Based Incentives (“PBIs”) shall mean the renewable energy tariff price paid to a producer for Renewable Energy Sources

Article 4
Obligation to purchase and transmit electricity/energy
(1) Grid system operators shall immediately and as a priority connect plants generating electricity/energy from renewable energy sources to their systems and guarantee priority purchase and transmission of all electricity/energy from renewable energy sources supplied by such plants. After establishment of a register of installations pursuant to Article 15(3), such obligation for the purchase pursuant to the first sentence above shall apply only if the plant operator has submitted an application for entry into the register. Notwithstanding Article 12(1), plant operators and grid system operators may agree by contract to digress from the priority of purchase, if the plant can thus be better integrated into the grid system. When determining the charges for use of the grid, grid system operators may add any costs incurred in accordance with a contractual agreement pursuant to the third sentence above, provided that such costs are substantiated.

(2) The obligation under paragraph (1) first sentence above shall apply to the grid system operator or load serving entity that is most closely located to the plant site and is in possession of a grid technically suitable to receive electricity/energy if there is no other grid with a technically and economically more suitable grid connection point. A grid shall be deemed to be technically suitable even if– notwithstanding the priority established under paragraph (1) first sentence above – feeding in the electricity/energy requires the grid system operator to upgrade its grid at a reasonable expense; in this case, the grid system operator shall upgrade its grid without undue delay, if so requested by a party interested in feeding in electricity/energy. If the plant must be licensed in accordance with any other legal provisions, the obligation to upgrade the grid in accordance with the second sentence above shall only apply if the plant operator submits either a license, a partial license or a preliminary decision. The obligation to upgrade the grid shall apply to all technical that or passed into the ownership of the grid system operator.

(3) The obligation for priority connection to the grid system pursuant to paragraph (1) first sentence above shall apply even if the capacity of the grid system or the area serviced by the grid system operator is temporarily entirely taken up by electricity/energy produced from renewable energy sources, unless the plant does not have a technical facility for reducing the feed-in in the event of grid overload. The obligation pursuant to paragraph (1) first sentence above for priority purchase of the electricity/energy produced in these plants shall apply only if the capacity of the grid system or the area serviced by the grid system operator is not already used up by electricity/energy produced in other plants generating electricity/energy from renewable energy sources which were connected prior to these plants; the obligation to upgrade the grid system without undue delay pursuant to paragraph (2) second sentence above shall remain unaffected. In the event of non-purchase of such electricity/energy, the grid system operator shall, if so requested by the plant operator, provide proof of fulfillment of the conditions set out in the second sentence above in writing within four weeks and produce verifiable calculations.

(4) The relevant data on the grid system and on the electricity/energy generation plants, which are required to test and verify the grid compatibility, shall be presented upon request within eight weeks where this is necessary for the grid system operator or the party interested in feeding in electricity/energy to do their planning and to determine the technical suitability of the grid.

(5) The obligation for priority purchase and transmission of electricity/energy in accordance with
paragraph (1) first sentence above shall also be applied, if the plant is connected to the grid of a plant operator or a third party who is not a grid system operator within the meaning of Article 3(7) and if the electricity/energy is offered to a grid system in accordance with Article 3(6) via a merely budgeted transit through this grid system.

(6) The upstream transmission system operator shall guarantee priority purchase and transmission of the quantity of energy purchased by the grid system operator in accordance with paragraph (1) or (5) above.

Article 5
Obligation to pay advanced renewable energy PBI
(1) Pursuant to Articles 6 to 12, the grid system operators shall pay PBIs for electricity/energy generated in plants exclusively using renewable energy sources and purchased in accordance with Article 4(1) or (5) and transmitted through the grid operators system. The obligation in accordance with the first sentence above shall apply to all plants producing electricity/energy or those plants producing hot water used to offset electrically heated water.

(2) Pursuant to Articles 6 to 12, the upstream transmission system operator shall pay for the quantity of energy that the grid system operator has purchased in accordance with Article 4(6) and paid for in accordance with paragraph (1) above.

Article 6
PBIs paid for electricity/energy produced from hydropower
(1) The PBIs paid for electricity/energy generated by run-of-the-river hydroelectric power plants shall be based on the price needed for development plus a reasonable profit, differentiated by project size, and no less than that below.
<500 kW, $0.10/kWh,

Article 7
PBIs paid for electricity/energy produced from landfill gas, sewage treatment plant gas
(1) The PBIs paid for electricity/energy from landfill gas, sewage treatment plant gas shall be based on the price needed for development plus a reasonable profit, differentiated by project size, and no less than that below.
<500 kW, $0.10/kWh, and
>500 kW, $0.085/kWh.

Article 8
PBIs paid for electricity/energy produced from biogas
(2) The PBIs paid for electricity/energy produced from biogas gas shall be based on the price needed for development plus a reasonable profit, differentiated by project size, and no less than that below.
<150 kW, $0.145/kWh
150 to 500 kW, $0.125/kWh,
500 kW to 5 MW, $0.115/kWh, and
5 MW to 50 MW, $0105/kWh.

Article 9
PBIs paid for electricity/energy produced from geothermal energy
(3) The PBIs paid for electricity/energy generated in geothermal energy plants shall be based on the price needed for development plus a reasonable profit, differentiated by project size, and no less than that below.
<5MW, $0.19/kWh,
5 MW to 10 MW, $0.18/kWh,
10 MW to 20 MW, $0.115/kWh, and
>20 MW, $0.09/kWh.

Article 10
PBIs paid for electricity/energy produced from wind energy
(4) The PBIs paid for electricity/energy generated by wind-powered plants gas shall be based on the price needed for development plus a reasonable profit, differentiated by average specific yield in kWh/m2/year of rotor swept area as described below.
Prices or PBIs will be determined using a fixed price for all wind generation from year one through year five. Subsequent PBIs for years six through year 20 will be determined based on the average specific yield in kilowatt-hours per square meter of rotor area on a sliding scale, otherwise known as the ADEME (Agence de l'Environnement et de la Maitrise de l'Energie) model. The average specific yield will be the average of the sum of the first five years of production in kWh, less the year of maximum and the year of minimum production, divided by the rotor swept area.

All wind turbines will be paid a tariff of $0.105/kWh for generation in years one through five.

All wind turbines with an average specific yield less than 700 kWh/m2/year will be paid a tariff of $0.105/kWh for years six through twenty.

All wind turbines with an average specific yield greater than 1,100 kWh/m2/year will be paid a tariff of 0.08/kWh for years six through twenty.

All wind turbines with an average specific yield between 700 and 1,100 kWh/m2/year will be paid a tariff that is a linear interpolation between the tariff at 700 kWh/m2/year and that for 1,100 kWh/m2/year.

All offshore wind turbines with an average specific yield less than 1,100 kWh/m2/year will be paid a tariff of $0.132/kWh
All offshore wind turbines with an average specific yield greater than 1,100 kWh/m2/year will be paid a tariff of $0.09/kWh

Article 11
PBIs paid for electricity/energy produced from solar energy
(1) The PBIs paid for electricity/energy generated by plants using solar energy from photovoltaic shall be based on the price needed for development plus a reasonable profit, differentiated by project size or location and no less than that below.

Freestanding or open field: 500kW – 50MW, $0.385/kWh,
Commercial: 100kW – 500kW, $0.445/kWh,
Residential: <100kW, $0.515/kWh,

(2) The PBIs paid for electricity/energy generated by plants using solar energy from concentrating solar power shall be based on the price needed for development plus a reasonable profit, differentiated by project size and no less than that below.

<50MW, $0.12c/kWh,

Projects larger than 50MW will require to be approved by the Florida Public Service Commission in the normal fashion.

(3) The PBIs paid for electricity/energy generated by plants using solar energy for solar thermal water heating shall be based on the price needed for development plus a reasonable profit, differentiated by project size and no less than that below.

Commercial: > 20 Kwh $0.30/kwh
Residential: < 20 kwh $0.36/kwh

Article 12
Common provisions for purchase, transmission and payment of PBIs
(1) Grid system operators shall offer a Standard Contract to all qualified participants. The Standard Contracts shall be approved by the Florida Public Service Commission for conciseness, clarity, ease of understanding, and transparency. The Standard Contracts must include the prices or PBIs paid for each kilowatt-hour generated, the duration of the contract, and any adjustments of the PBIs for inflation. The Florida Public Service must provide grid system operators and load serving entities with standardized contracts within three months after passage of the act.
(2) Where Articles 6 to 11 provide for different minimum PBIs depending on the plant’s capacity or average specific yield, the amount of the PBIs shall be determined according to the share of the plant’s capacity in relation to the threshold value to be applied. For the purpose of attribution to the threshold values referred to in Articles 6 to 9 and notwithstanding Article 3(5), capacity within the meaning of the first sentence above shall be understood as meaning the ratio of the total kilowatt-hours to be purchased in the calendar year in question pursuant to Article 4(1) or (5) to the total number of full hours for that calendar year less the number of full hours prior to commissioning and after final decommissioning of the plant.

(3) The minimum PBIs shall be paid from the date of commissioning for a period of
20 calendar years as well as for the year of commissioning.

(4) The set-off of payment claims by the plant operator in accordance with Article 5 against a claim by the grid system operator shall only be permissible where the claim is undisputed or has been legally established.

(5) Upon request of the plant operator, the court responsible for the principal case may, at its own discretion and in consideration of the merits of the individual case, order the debtor of the claims referred to in Articles 4 and 5 by way of a preliminary injunction to connect the plant temporarily and purchase the electricity/energy generated by it and make an advance payment of an equitable and fair amount of money.

(6) Electricity/energy fed in from several plants may be billed via a shared metering device. In this case, the capacity of each individual plant shall be deemed relevant for calculating the amount of differentiated minimum PBIs. If electricity/energy generated by several wind-powered plants to which different rates of minimum PBIs are applicable is billed via a common metering device, the quantities of electricity/energy are attributed to the wind-powered plants in proportion to their reference yields.

(7) The minimum PBIs in accordance with Articles 6 to 11 shall not be deemed to include sales tax. The PBIs shall not be subject to any Florida state corporation tax and the Plant shall be exempt from any Florida property taxes from the date of commissioning for a period of 10 calendar years and the

(8) PBIs paid for each kilowatt-hour generated by renewable resources and other terms of the act shall be reviewed two years after the first contracts are awarded under the act to determine the robustness of the act. PBIs shall be determined by public consultation of a select Assembly committee made up of academic and engineering expertise, renewable energy stakeholders, select members of Florida’s Legislative Assembly and others by invitation. PBIs will be determined on the price needed for profitable development. Profitable development will be defined as a Profitability Index of no less than 0.1 to ensure rapid deployment of renewable sources of generation, and no more than 0.3 to prevent excessive profits and unnecessary costs to ratepayers.

(9) PBIs in Articles 6 to 11 will be indexed to 60% of inflation, that is PBIs will increase annually with 60% of inflation to protect long-lived capital investments such as renewable sources of electricity/energy generation.

(10) PBIs in Articles 6 to 11 apply to only those generators not applying for or receiving federal subsidies or federal tax credits or other federal incentive payments.

(11) PBIs in Articles 6 to 11 may apply proportionally to those generators applying for or receiving federal subsidies or federal tax credits or other federal incentive payments as determined to deliver a Profitability Index of no less than 0.1 to ensure rapid deployment of renewable sources of generation, and no more than 0.3 to prevent excessive profits and unnecessary costs to ratepayers. A system of proportional PBIs will be determined by the Florida Public Service Commission in a prompt, open, and transparent manner within three months of passage of the act.


Article 13
Grid costs
(1) The costs associated with connecting plants generating electricity/energy from renewable energy sources to the technically and economically most suitable grid connection
point and with installing the necessary measuring devices for recording the quantity of electrical energy transmitted and received shall be borne by the plant operator. In the case of one or several plants with a total capacity of up to 30 kilowatts located on a plot of land which already has a connection to the grid, this plot’s grid connection point shall be deemed to be its most suitable connection point; if the grid system operator establishes a new connection point for the plants, he shall bear the resulting incremental cost. Implementation of this connection and the other installations required for the safety of the grid shall meet the plant operator’s technical requirements in a given case. The plant operator may have the connection and the installation and
operation of measuring devices implemented either by the grid system operator or by a
qualified third party.

(2) The costs associated with upgrading the grid in accordance with Article 4(2) that solely result from the need to accommodate new, reactivated, extended or otherwise modernized plants generating electricity/energy from renewable energy sources for the purchase and transmission of electricity/energy produced from renewable energy sources shall be borne by the grid system operator whose grid needs to be upgraded. He shall specify the required investment costs in detail. The grid system operator may add these costs when determining the charges for use of the grid.

Article 14
Statewide equalization of costs across all electricity/energy consumers
(1) The transmission system operators shall record the different volumes of and periods of generation of energy paid for in accordance with Article 5(2) as well as the PBIs paid, and provisionally equalize such differences amongst themselves without undue delay and settle the accounts with regard to the quantities of energy and the PBIs paid pursuant to paragraph (2) below.

(2) By 30 September of each year, the transmission system operators shall determine the quantity of energy purchased and paid for in the previous calendar year in accordance with Article 5 and provisionally equalized in accordance with paragraph (1) above, and the percentage share of this quantity in relation to the total quantity of energy delivered to final consumers by the utility companies in the area served by the individual transmission system operator in the previous calendar year. If transmission system operators have purchased quantities of energy that are greater than this average share, they shall be entitled to sell energy to and receive PBIs from the other transmission system operators in accordance with Articles 6 to 12, until the other grid system operators have purchased a quantity of energy
equal to the average share.

(3) Utility companies which deliver electricity/energy to final consumers shall purchase and pay for that share of the electricity/energy which their regular transmission system operator purchased pursuant to the provisions of paragraphs (1) and (2) above in accordance with a profile made available in due time and approximated to the actually purchased quantity of electricity/energy pursuant to Article 4 in conjunction with Article 5. The first sentence above shall not apply to utility companies which, of the total quantity of electricity/energy supplied by them, supply at least 50 per cent in accordance with the provisions of Articles 6 to 11. The share of the electricity/energy to be purchased by a utility company in accordance with the first sentence above shall be placed in relation to the quantity of electricity/energy delivered by the utility company concerned and shall be determined in such a way that each utility company will receive a relatively equal share. The compulsory quantity to be purchased (share) shall be calculated as the ratio
of the total quantity of electricity/energy paid for in accordance with Article 5(2) to the total quantity of electricity/energy sold to final consumers. The PBIs as specified in the first sentence above shall be calculated as the expected average PBIs per kilowatt-hour paid by all grid system operators combined two quarters earlier in accordance with Article 5, less the charges for use of the grid avoided pursuant to Article 5(2) second sentence. The transmission system operators shall assert claims held against the utility companies in accordance with the first sentence above that arise from equalization in accordance with paragraph (2) above by 31 October of the year following the feeding-in of electricity/energy. Equalization for the actual energy quantities purchased and the PBIs paid shall take place in monthly installments before 30 September of the following year. Electricity/energy purchased in accordance with the first sentence above may not be sold below the PBIs paid in accordance with the fifth sentence above if it is marketed as electricity/energy produced from renewable energy sources or as comparable electricity/energy.

(4) If a valid court decision in the principal case issued after a billing statement pursuant to paragraph (2) first sentence or paragraph (3) above leads to any changes regarding the quantities of energy to be billed or the payments of PBIs due, such changes shall be taken into account in the next billing statement.

(5) Monthly installments shall be paid on the expected equalization payments.

(6) Grid system operators that are not transmission system operators and utility companies shall without undue delay make available the data required to perform the calculations referred to in paragraphs (1) to (5) above and present their final accounts for the previous year by 30 April. Grid system operators and utility companies may request that final accounts pursuant to the first sentence above be certified by 30 June and final accounts pursuant to paragraph (2) above by 31 October by a chartered or certified accountant. Plant operators shall make the data required for the final accounts of the previous year available by 28 February of the following year.

(7) Final consumers who purchase electricity/energy not from a utility company but from a third
party are placed on an equal footing with utility companies as defined in paragraphs (2) and (3) above.

(8) The Florida Public Service Commission is authorized to issue a ruling setting out the provisions on

1. the organizational and temporal framework for equalization pursuant to paragraph (1)
above, in particular with a view to determining the responsible party and ensuring optimum and equal forecasting options with regard to the quantities of energy to be equalized and burden trends;

2. determining or identifying a uniform profile in accordance with paragraph (3) above, on the question of when, including the run-up period, and how such a profile and the underlying data are made available and on

3. the specification of the data required in accordance with paragraph (6) above and how such data are to be made available.

Article 15
Transparency
(1) Grid system operators and utility companies, and any alliances formed by them, which deliver electricity/energy to final consumers shall be entitled to give notice to any third parties of the difference between the PBIs paid in accordance with Article 14(3) first and fifth sentences and their own average purchase costs per kilowatt-hour or the average purchase costs per kilowatt-hour incurred by the utility companies connected to their grid system during the last closed financial year (differential cost), where they provide proof of this by presenting a certificate by a chartered or certified accountant which will be published. When giving notice of the differential cost, the number of kilowatt-hours of electricity/energy produced from renewable energy sources and from mine gas on which the calculation pursuant to the first sentence above is based must also be stated. Costs that may be added to the charges for use of the grid shall not be shown separately.

(2) The grid system operators shall publish the data necessary to determine the energy quantities and the fee payments to be equalized in accordance with Article 14 by 30 September of the following year. Such data must show whether the grid system operators have purchased the energy quantities from a downstream grid and whether they have sold the electricity/energy to final consumers, grid system operators or utility companies delivering electricity/energy to final consumers or used it themselves. The Florida Public Service Commission is authorized to regulate the details of the publication requirements in a ruling.

(3) For the purpose of increasing transparency and simplifying the statewide equalization mechanism, a public register may be established through a ruling pursuant to the third sentence below in which installations for the generation of electricity/energy from renewable energy sources are to be registered (register of installations). Registration may be subject to a fee as defined in an ordinance pursuant to the third sentence below. The Florida Public Service Commission is authorized to issue a ruling that entrusts a subordinate state authority or a legal person under private law with the keeping of the register of installations and to determine any details regarding the register, the information to be registered, the registration procedure, data protection requirements, publication of data and the charging and level of PBIs.

Article 16
Special provision for energy intensive industries
(1) It is the intention of this act that energy intensive industries buying electricity/energy in the state of Florida may be excused from paying the equalization surcharge if such industries can prove hardship.
(2) The Florida Public Service Commission is authorized to begin a rule-making proceeding on the terms, transparency, and rationale for determining when an energy intensive industry has suffered hardship from the equalization surcharge upon passage of the act.
(3) The Florida Public Service Commission is to weigh similar provisions in other jurisdictions in North America and worldwide to maintain Florida’s competitive position.
(4) The Florida Public Service Commission is to weigh actual costs incurred and competitive positions eroded not to weigh proscriptive or future impacts.


Article 17
Guarantee of origin
(1) Plant operators may request a person or organization entitled to act as an environmental verifier or environmental verification organization in the field of electricity/energy production in accordance with an Environmental Audit to issue a guarantee of origin for electricity/energy produced from renewable energy sources.

(2) Such guarantee of origin must specify

1. the energy sources from which the electricity/energy was produced, listed according to type and major components, including the information to what extent the electricity/energy was produced from renewable energy sources

2. where biomass is used, whether it is exclusively biomass within the meaning of the ordinance pursuant to Article 8(7),

3. the name and address of the plant operator,

4. the quantity of electricity/energy generated in the plant, the period in which it was produced and to what extent it was paid for in accordance with Articles 5 to 12 and

5. the place, the capacity and the date of commissioning of the plant.

(3) Such guarantees of origin shall only be used if the information required in paragraph (2) above is complete.

Article 18
Prohibition of multiple sale
(1) Electricity/energy produced from renewable energy sources and from mine gas or landfill gas, sewage treatment gas, or gas from biomass fed into a gas network may not be sold or otherwise transferred more than once.

(2) Plant operators who received payment in accordance with Articles 5 to 12 shall not forward any guarantees for electricity/energy produced from renewable energy sources. If a plant operator forwards such a guarantee for electricity/energy produced from renewable
energy sources, the electricity/energy shall not be paid for in accordance with Articles
5 to 12.

Article 19
Clearing house
The Florida Public Service Commission may establish a clearing house to settle any disputes and issues of application arising under this act, which may involve the parties concerned.

Article 20
Progress report
(1) The Florida Public Service Commission shall every four years report on the state of affairs with regard to the introduction to the market of plants generating electricity/energy from renewable energy sources and from and the development of electricity/energy production costs in such plants and shall if necessary propose an adjustment of the amount of the PBIs to be paid in accordance with Articles 6 to 12. The progress report shall also assess the storage technologies and the ecological effects of the use of renewable energy sources on nature and landscapes.

(2) For the purpose of spot checks of electricity/energy production costs within the meaning of paragraph (1) above and in order to ensure the functioning of the equalization scheme pursuant to Article 14, plant operators whose plants were commissioned on or after 1 August 2006 and who have received payment of PBIs in accordance with Articles 5 to 12, and grid system operators shall, upon request, provide the Florida Public Service Commission and its authorised representatives with truthful and accurate
information about all facts that may be relevant for the assessment of electricity/energy production costs and of equalised energy quantities and payments of PBIs in accordance with Article 14. If the plant operators and grid system operators are traders within the meaning of the Commercial Code, the account books shall in addition be disclosed upon request where they may give information about facts that may be relevant for assessing the electricity/energy production costs and the equalized energy quantities and payments of PBIs. The principles of data protection shall be observed.

Article 21
Chief Executive for Renewables
(1) The Governor shall appoint a a Chief Executive Officer for Renewables reporting to the [Governor] whose office shall be established to promote the purpose and objectives of the Florida Renewable Energy Freedom Act and ensure that the various stakeholders, Public Service Commission and utilities collaborate to achieve its objectives

Section 2
Entry into Force, Expiry
This act shall enter into force on the day following the signature of the Governor of the State of Florida.

Comment by Roy R on September 30, 2008 at 7:52am

EDF to Florida PSC: Feed-in Tariffs Better than REC Trading
September 29, 2008
Environmental Defense Fund (EDF) filed comments with the Florida Public Service Commission on August 26, 2008 arguing that its proposed rules unduly restrict the state's options for developing renewable energy.
Like the Florida Solar Coalition and the Florida Solar Energy Alliance, EDF argued that the proposed rules governing the state's Renewable Portfolio Standard are il-advised.
EDF said it "is concerned that the Draft Rule's wholesale reliance on a REC program without analyzing the unprecedented successes of a procurement model established first in Germany, but now successfully implemented in over 45 countries around the world, puts Florida at a disadvantage. This model, called a Renewable Energy Payment (REP) or Feed-In Policy, is also being considered by multiple states here in the United States as both a separate energy policy and as a mechanism to implement a strong RPS. Failure to examine this alternative to the REC program outlined in the Draft Rule would be a missed opportunity to discover a policy that results in tremendous job creation, economic development and more renewable energy per dollar invested. Evidence is mounting that a REP policy far outweighs other procurement models for the large-scale adoption of renewable energy technologies."
For more on the filing, see EDF PSC Comments 08-26-08.
Florida Solar Coalition Calls for Feed-in Tariffs Over RECs at PSC
September 29, 2008
In comments filed September 5, 2008 with the Florida Public Service Commission, the Florida Solar Coalition called for a system of Renewable Energy Payments (feed-in tariffs) instead of Renewable Energy Credits. The Florida Solar Coalition is comprised Florida Solar Energy Industries Association (FlaSEIA), the Vote Solar Initiative and The Solar Alliance.
The filing in the Florida PSC's hearing on proposed rules governing the state's Renewable Portfolio Standard noted that in the "FSC's opinion, the use of RECs is not the best or the most cost-effective means of developing the solar energy market in Florida. A renewable energy payment program which establishes a fixed $/kWh payment pursuant to a long-term contract available to residential and commercial customers and renewable developers is preferred. Further, performance-based incentives coupled with net metering for photovoltaic systems allows customers to finance their systems by locking in their energy rates and giving much needed assistance with the capital cost of solar renewable systems. Both of these incentive programs provide benefits directly to the electric end-user and, because they are programmatically simpler, are less expensive to establish and administer than a REC market."
The comments marked a departure for solar advocacy groups because previously Vote Solar and the Solar Alliance had supported REC trading markets over the more direct approach of feed-in tariffs. Florida has become a battleground between supporters of renewable energy derivatives and proponents of renewable energy payments.
-End-
Florida Alliance for Renewable Energy Launches
September 29, 2008
Renewable energy advocates supporting the development of Renewable Energy Payments (feed-in tariffs) for Florida have launched the Florida Alliance for Renewable Energy, dubbed FARE.
Suggesting that fee-in tariffs are the "easiest energy choice Floridians can make," FARE says that it's supporters are concerned individuals, businesses, elected officials and organizations who recognize the opportunities that Renewable Energy Payments will bring to the state of Florida.
FARE's first action was the FARE Filing August 2008 with Florida's Public Service Commission
FARE Files Florida PSC Comments Calling for Feed-in Tariffs
August 29, 2008
Tradable credits are the renewable equivalent of the Alaskan bridge to nowhere says filing.
The Florida Alliance for Renewable Energy (FARE) filed comments with the Public Service Commission (PSC) on August 26, 2008 suggesting that the state move towards a system of feed-in tariffs rather than going down its present path.
The Alliance is a coalition of leading Florida solar companies and the Alliance for Renewable Energy, a group formed to promote Renewable Energy Payments (feed-in tariffs) in North America.
FARE's filing was in response to a PSC docket on the state's proposed Renewable Portfolio Standard (RPS) using a system of Renewable Energy Credits (RECs) as the development mechanism. While many RPS policies do not use tradable credits as the sole implementing mechanism, some do.
Prepared by Florida investment banker John Burges, the filing argued that the proposed REC program "will benefit a few large companies at the expense of many small and mid-sized" firms and do little to advance the Governor's renewable economic and industrial development objectives. Burges contrasted the success of Germany's feed-in tariffs in creating 250,000 jobs with the PSC's timid proposal.
The filing goes on to suggest that a REC trading system will not achieve the goals set out by the Governor nor will it allow equitable opportunity to all in developing the state's renewable resources. RECs are also a poor value to ratepayers in comparison to Renewable Energy Payments, Burges argued in the filing, citing several independent studies that reached that conclusion.
The proposed RECs trading market, "as currently drafted in the PSC rule are a more expensive policy and [will be] less successful in generating investments in renewables--they are the renewable equivalent of the Alaskan bridge to nowhere."
Internationally, feed-in tariffs have become the mechanism of choice for increasing the uptake of solar, wind, biomass and other forms of renewable energy, FARE said.
The Alliance urged the PSC to replace the proposed credit trading system with a system of feed-in tariffs. It argued that the RECs trading system does not work well for renewables such as solar and biomass, that predominate in Florida.
The draft PSC rule has taken heavy criticism from other groups. Leading newspapers and NGO’s have been especially critical of the draft PSC rule. The St Petersburg Times said the “Public Service Commission's targets for renewable energy [are] far below [Governor] Crist's” while the Miami Herald stated that the “Public Service Commission is recommending an extremely slow buildup in the use of renewable energy.”
“The (PSC) targets aren't ambitious enough to drive any kind of investment in renewable energy technology in Florida," said George Cavros of the Southern Alliance for Clean Energy in a letter to the Miami Herald. The targets were "the weakest in the nation. Dead last," he added. "Governor Crist would be 94 before his proposed 20 percent target is realized."
"We were just flabbergasted by the one percent cost cap," said Sean Stafford, who represents Florida Crystals, the sugar producer that operates the state's largest renewable energy plant, in reference to another clause that would cap all renewable costs at one percent of utility revenues.
Environmental Defense Fund was also highly critical. Gerald Karnas, EDF's Florida Director, has called for the introduction of feed-in tariffs as the best way to achieve the Governor’s renewable objectives.
-End-

Comment by Roy R on September 12, 2008 at 7:26am

Dear Governor Crist,

I am writing in hopes that you will give a strong recommendation to the Florida Public Service Commission (FPSC) to adopt Renewable Energy Payments (REP’s) also know as Feed-In Tariffs. REP’s are the best policy mechanism for our renewable energy future.

As you know, the FPSC is currently pursuing a policy focused on Renewable Energy Credits (REC’s). REC’s have proven to significantly limit the renewable energy market expansion. REC’s have caused once prosperous, growing renewable energy industries to collapse. A policy based on REC’s create the conditions for a few shrewd, out-of-state companies to build large, central power plants with Florida rate payers’ money. This would capture the vast majority of these REC’s for their own use. Once completed, they will have established a monopoly and leave Florida. REC’s are expensive, complicated, and require significant resources to deal with.

As a resident and energy rate paying citizen of Florida, I urge you to recommend the proven policy of Renewable Energy Payments. This policy will create thousands of new, high paying, secure jobs. REC’s will not. We need to create energy security and permit all Florida citizens the ability to become independent energy producers through distributed solar power. The benefits to Renewable Energy Payments (REP’s) are extensive:

• Less costly
• Easily administered
• Easily understood
• Utilized throughout the world

Florida is the “Sunshine State” and is positioned to be the leader in solar energy production, paving the way for others to follow by example. As the Governor of this great state, please take action now on our renewable energy policy. Let’s create jobs in Florida, stimu¬late the growth of Florida’s economy, help Florida achieve energy independence, and save our planet for future generations. A policy based on Renewable Energy Payments will make this happen. Just ask the rest of the world using it.

Thank You for Your Support,

Your Name Here Delete Comment

Comment by Roy R on September 9, 2008 at 6:37am

thank you all

Comment by Roy R on September 3, 2008 at 11:12am

September 3, 2008
FARE Files Florida PSC Comments Calling for Feed-in Tariffs
by Paul Gipe, Contributing Writer
Florida, United States [RenewableEnergyWorld.com]
Tradable credits are the renewable equivalent of the Alaskan bridge to nowhere says a recent filing made with the Florida Public Service Commision (PSC). The Florida Alliance for Renewable Energy (FARE) filed comments with the Public PSC on August 26, 2008 suggesting that the state move towards a system of feed-in tariffs rather than going down its present path.
The filing goes on to suggest that a REC trading system will not achieve the goals set out by the Governor nor will it allow equitable opportunity to all in developing the state's renewable resources.
The Alliance is a coalition of leading Florida solar companies and the Alliance for Renewable Energy, a group formed to promote Renewable Energy Payments (feed-in tariffs) in North America.

FARE's filing was in response to a PSC docket on the state's proposed Renewable Portfolio Standard (RPS) using a system of Renewable Energy Credits (RECs) as the development mechanism. While many RPS policies do not use tradable credits as the sole implementing mechanism, some do.

Prepared by Florida investment banker John Burges, the filing argued that the proposed REC program, "will benefit a few large companies at the expense of many small and mid-sized" firms and do little to advance the Governor's renewable economic and industrial development objectives. Burges contrasted the success of Germany's feed-in tariffs in creating 250,000 jobs with the PSC's timid proposal.

The filing goes on to suggest that a REC trading system will not achieve the goals set out by the Governor nor will it allow equitable opportunity to all in developing the state's renewable resources. RECs are also a poor value to ratepayers in comparison to Renewable Energy Payments, Burges argued in the filing, citing several independent studies that reached that conclusion.

The proposed RECs trading market, "as currently drafted in the PSC rule are a more expensive policy and [will be] less successful in generating investments in renewables--they are the renewable equivalent of the Alaskan bridge to nowhere," the filing said.

Internationally, feed-in tariffs have become the mechanism of choice for increasing the uptake of solar, wind, biomass and other forms of renewable energy, according to FARE.
The Alliance urged the PSC to replace the proposed credit trading system with a system of feed-in tariffs. It also argued that the RECs trading system does not work well for renewables such as solar and biomass, that predominate in Florida.

The draft PSC rule has taken heavy criticism from other groups. Leading newspapers and NGO’s have been especially critical of the draft PSC rule. The St. Petersburg Times said the “Public Service Commission's targets for renewable energy [are] far below [Governor] Crist's” while the Miami Herald stated that the “Public Service Commission is recommending an extremely slow buildup in the use of renewable energy.”

“The (PSC) targets aren't ambitious enough to drive any kind of investment in renewable energy technology in Florida," said George Cavros of the Southern Alliance for Clean Energy in a letter to the Miami Herald. The targets were "the weakest in the nation. Dead last," he added. "Governor Crist would be 94 before his proposed 20 percent target is realized."

"We were just flabbergasted by the one percent cost cap," said Sean Stafford, who represents Florida Crystals, the sugar producer that operates the state's largest renewable energy plant, in reference to another clause that would cap all renewable costs at one percent of utility revenues.

Environmental Defense Fund (EDF) was also highly critical. Gerald Karnas, EDF's Florida Director, has called for the introduction of feed-in tariffs as the best way to achieve the Governor’s renewable objectives.

Comment by Roy R on September 1, 2008 at 6:26pm

FARE Files Florida PSC Comments Calling for Feed-in Tariffs
August 29, 2008



Tradable credits are the renewable equivalent of the Alaskan bridge to nowhere says filing.
The Florida Alliance for Renewable Energy (FARE) filed comments with the Public Service Commission (PSC) on August 26, 2008 suggesting that the state move towards a system of feed-in tariffs rather than going down its present path.

The Alliance is a coalition of leading Florida solar companies and the Alliance for Renewable Energy, a group formed to promote Renewable Energy Payments (feed-in tariffs) in North America.

FARE's filing was in response to a PSC docket on the state's proposed Renewable Portfolio Standard (RPS) using a system of Renewable Energy Credits (RECs) as the development mechanism. While many RPS policies do not use tradable credits as the sole implementing mechanism, some do.

Prepared by Florida investment banker John Burges, the filing argued that the proposed REC program "will benefit a few large companies at the expense of many small and mid-sized" firms and do little to advance the Governor's renewable economic and industrial development objectives. Burges contrasted the success of Germany's feed-in tariffs in creating 250,000 jobs with the PSC's timid proposal.

The filing goes on to suggest that a REC trading system will not achieve the goals set out by the Governor nor will it allow equitable opportunity to all in developing the state's renewable resources. RECs are also a poor value to ratepayers in comparison to Renewable Energy Payments, Burges argued in the filing, citing several independent studies that reached that conclusion.

The proposed RECs trading market, "as currently drafted in the PSC rule are a more expensive policy and [will be] less successful in generating investments in renewables--they are the renewable equivalent of the Alaskan bridge to nowhere."

Internationally, feed-in tariffs have become the mechanism of choice for increasing the uptake of solar, wind, biomass and other forms of renewable energy, FARE said.

The Alliance urged the PSC to replace the proposed credit trading system with a system of feed-in tariffs. It argued that the RECs trading system does not work well for renewables such as solar and biomass, that predominate in Florida.

The draft PSC rule has taken heavy criticism from other groups. Leading newspapers and NGOs have been especially critical of the draft PSC rule. The St Petersburg Times said the Public Service Commission's targets for renewable energy [are] far below [Governor] Crist's while the Miami Herald stated that the Public Service Commission is recommending an extremely slow buildup in the use of renewable energy.

The (PSC) targets aren't ambitious enough to drive any kind of investment in renewable energy technology in Florida," said George Cavros of the Southern Alliance for Clean Energy in a letter to the Miami Herald. The targets were "the weakest in the nation. Dead last," he added. "Governor Crist would be 94 before his proposed 20 percent target is realized."

"We were just flabbergasted by the one percent cost cap," said Sean Stafford, who represents Florida Crystals, the sugar producer that operates the state's largest renewable energy plant, in reference to another clause that would cap all renewable costs at one percent of utility revenues.

Environmental Defense Fund was also highly critical. Gerald Karnas, EDF's Florida Director, has called for the introduction of feed-in tariffs as the best way to achieve the Governors renewable objectives.


FARE PSC Filing 07738-08.pdf
Public Service Commission's targets for renewable energy far below Crist's (St. Petersburg Times)
Renewable-energy plan for Florida on agenda (Miami Herald)

-End-



Paul Gipe
Tehachapi CA 93561-1741 USA
661 325 9590, 661 472 1657 mobile
pgipe@igc.org, www.wind-works.org

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