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Tourism, Infrastructure & Energy Subcommittee: HB 139 Amendment Summary, March 9, 2021

Summary

Meeting packet of the Tourism, Infrastructure & Energy Subcommittee for March 9, 2021. It opens with amendment summaries for HB 139 by Rep. Fernandez-Barquin on electronic transactions for title certificates and registrations, HB 451 by Rep. Hage on specialty license plates, HB 613 by Rep. Aloupis on tax collector and license plate agency operations, and HB 621 by Rep. Williamson. A staff analysis dated 3/5/2021 covers HB 1051, Environmental Compliance Costs, which would let costs an electric utility incurs after July 1, 2021 under an agreement with a wastewater utility for a reuse system count under the Environmental Cost Recovery Clause. The packet closes with PCS for HB 839, which would bar local governments from restricting transportation energy infrastructure, effective July 1, 2021.

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“Tourism, Infrastructure & Energy Subcommittee: HB 139 Amendment Summary, March 9, 2021.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-09-3103-tourism-infrastructure-energy-subcommittee-meeting-pac-926c0faf82/, SHA-256 38845f0170b0308ef40380357454fc26aa5be10e2d40db5dd7ebd71914177577.

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      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                HB 139 by Rep. Fernandez-Barquin
      ELECTRONIC TRANSACTIONS for TITLE CERTIFICATES and
                        REGISTRATIONS

                           AMENDMENT SUMMARY
                              MARCH 9, 2021



Amendment 1 (Strike-All Amendment) by Rep. Fernandez-Barquin (# 150159)

  •   Removes provisions regarding motor vehicle titling.
  •   Removes provisions regarding electronic signatures.
  •   Authorizes the Department of Highway Safety and Motor Vehicles (DHSMV) and
      tax collectors to use e-mail addresses to perform their statutory duties.
  •   Provides that email addresses must be maintained in a manner to ensure that
      the addresses are exempt from public records requirements.
  •   Requires tax collectors and third-party contractors with access to DHSMV
      systems to enter into a memorandum of understanding with DHSMV regarding
      the use of DSHMV’s computer systems.
  •   Authorizes the existing fee charged on certain motor vehicle registrations to be
      used to ensure ancillary technology and other tax collection systems protect
      customer privacy data.
  •   Requires DHSMV, upon a tax collector’s request, to provide certain ancillary
      technology to integrate other tax collection systems with data access and uniform
      interface functionalities.
  •   Provides specific purposes that DHSMV data may be used for.
  •   Requires certain data access and uniform interface functionalities to be
      developed by July 1, 2023.
  •   Defines the term “registration renewal transactions.”
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                           HB 451 by Rep. Hage
                        SPECIALTY LICENSE PLATES

                           AMENDMENT SUMMARY
                              MARCH 9, 2021



Amendment 1 by Rep. Hage (# 631941)

  •   Authorizes proceeds from the sale of the Honor Flight license plate to be spent
      outside of the State of Florida.
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                  HB 613 by Rep. Aloupis
   TAX COLLECTOR and LICENSE PLATE AGENCY OPERATIONS

                            AMENDMENT SUMMARY
                               MARCH 9, 2021



Amendment 1 by Rep. Aloupis (# 768101)

  •   Relocates provisions of the bill that authorize license plate agencies to provide
      driver license services.
  •   Authorizes all tax collectors, effective October 1, 2021, to contract with one or
      more license plate agencies for specified driver license services.
  •   Requires the license plate agency to enter into an interagency agreement with
      the Department of Highway Safety and Motor Vehicles to provide driver license
      services.
  •   Provides that license plate agents are not authorized to issue driver licenses or
      identification cards or to possess blank driver licenses and identification cards.
  •   Requires funds collected from license plate agencies to be deposited into the
      state treasury in the same time frame as required for county tax collectors.
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                   HB 621 by Rep. Williamson
          TAX COLLECTORS and THEIR APPROVED AGENTS

                            AMENDMENT SUMMARY
                               MARCH 3, 2021



Amendment 1 (Strike-All Amendment) by Rep. Williamson (# 742277)

  •   Clarifies that provisions authorizing a tax collector to contract with license plate
      agents are permissive.
  •   Provides that the tax collector may determine the additional service charges
      collected by license plates agents.
  •   Reorganizes the bill’s provisions to place them in statutory order.
                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 1051   Environmental Compliance Costs
SPONSOR(S): Fernandez-Barquin
TIED BILLS:       IDEN./SIM. BILLS: CS/SB 964

     REFERENCE                                                       ACTION                    ANALYST            STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

     1) Tourism, Infrastructure & Energy Subcommittee                                          Johnson

     2) Environment, Agriculture & Flooding
        Subcommittee

     3) Commerce Committee


                                                         SUMMARY ANALYSIS

Under current law, investor-owned electric utilities may recover certain costs , such as fuel related expenses
and environmental compliance costs, outside of base rates through separate cost recovery charges approved
by the Public Service Commission (PSC). Environmental compliance costs are recovered through a statutorily
created mechanism known as the Environmental Cost Recovery Clause (ECRC).

The bill revises the definition of "environmental compliance costs" for purposes of the ECRC to include costs or
expenses incurred by an electric utility after July 1, 2021 , pursuant to an agreement between the electric utility
and a wastewater utility for the construction and operation of a wastewater reuse system that fully or partially
satisfies a local government's statutory reclaimed water reuse requirements. The bill also requires at least 50
percent of the reclaimed water the reuse system produces to be used in conjunction with the water
requirements of an electrical generating facility or facilities owned by the electric utility.

The bill does not have a fiscal impact on state or local governments, but may result in changes to electric rates
paid be private and government entities. See Fiscal Analysis for details.

The bill has an effective date of July 1, 2021 .




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1051 .TIE.D0CX
DATE: 3/5/2021
                                                           FULL ANALYSIS

                                                   I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
          Current Situation

          Ratemaking for Investor-Owned Electric Utilities
          The Public Service Commission (PSC) has broad jurisdiction over the rates and service of investor-
          owned electric utilities (IOUs) in Florida.1 Under this broad grant of authority, and through more specific
          grants of authority in chapter 366, F.S., the PSC sets rates for each IOU through five primary
          components, each of which is established in a separate administrative proceeding :
             • Base rates
                     o Designed to recover most operations and maintenance expenses, capital investments,
                         and a return on capital investment.
             • Fuel and purchased power cost recovery charges
                     o Designed to recover the costs of fuel and the energy component of wholesale power
                         purchases.
                     o By PSC order, may include recovery of capital investments, including a return on
                         investment, in limited circumstances.
             • Capacity cost recovery charges
                     o Designed to recover costs of the capacity component of wholesale power purchases.
                     o By statute, may include recovery of certain costs related to development of new nuclear
                         power plants, including a return , provided that the costs will be moved into base rates
                         when the new plant becomes operational. 2
             • Environmental cost recovery charges
                     o Designed to recover costs to comply with government-mandated environmental
                         standards.
                     o By statute, may include recovery of certain capital investments, including a return on
                         investment, provided that these costs may be moved into base rates at the IOU's next
                         rate case. 3
             • Energy conservation and efficiency cost recovery charges
                     o Designed to recover costs of implementing PSC-approved energy conservation and
                         efficiency programs.

         In each base rate proceeding, the PSC sets a reasonable rate of return on equity for the IOU . After
         rates are set, the actual rate of return on equity earned by an IOU fluctuates over time as utility
         revenues and expenses fluctuate.

         Environmental Cost Recovery Charges
         Separate from base rates, environmental cost recovery charges are set annually, and revenue
         collected through the Environmental Cost Recovery Clause (ECRC) provides cash flow for the specific
         operations and maintenance activities and large equipment modifications necessary to comply with
         environmental laws and regulations. 4

         The ECRC was established by the Legislature in 1993. To implement this law, the PSC established
         three criteria for approval of recovery through the ECRC:
             • The electric utility's costs were prudently incurred after April 13, 1993.

1
  See, e.g., ss. 366.01, 366.04(1), 366.041, 366.05(1), and 366.06, F.S. There are five public electric utilities in Florida: Florida Power
& Light Company, Duke Energy Florida, Tampa Electric Company, Gulf Power Company, and Florida Public Utilities Company.
Florida Power & Light Company and Gulf Power Company operate under the same parent company, NextEra Energy, Inc.
2
  S. 366.93, F.S.
3
  S. 366.8255, F.S.
4
  Public Service Commission, Agency Analysis of202 l House Bill 1051 p. I (March 3, 2021).
STORAGE NAME: h1051 .TIE.D0CX                                                                                                       PAGE: 2
DA TE 3/5/2021
              •   The activity is legally required to comply with a governmentally imposed environmental
                  regulation enacted, became effective, or whose effect was triggered after the electric utility's last
                  test year upon which rates are based.
              •   The electric utility's costs are not recovered through some other cost recovery mechanism or
                  through base rates .5


         Environmental compliance costs are defined in statute as all costs or expenses incurred by an electric
         utility in complying with environmental laws or regulations .6 Environmental compliance costs include,
         but are not limited to:
              • lnservice capital investments, including the electric utility's last authorized rate of return on
                   equity;
              • Operation and maintenance expenses;
              • Fuel procurement costs;
              • Purchased power costs;
              • Emission allowance costs;
              • Direct taxes on environmental equipment;
              • Costs or expenses prudently incurred by an electric utility pursuant to an agreement entered
                   into between the electric utility and the Department of Environmental Protection (DEP) or the
                   United States Environmental Protection Agency (EPA) for the exclusive purpose of ensuring
                   compliance with ozone ambient air quality standards by an electrical generating facility owned
                   by the electric utility; and
              • Costs or expenses prudently incurred for scientific research and geological assessments of
                   carbon capture and storage conducted in this state for the purpose of reducing an electric
                   utility's greenhouse gas emissions when such costs or expenses are incurred in joint research
                   projects with Florida state government agencies and universities.7

         Reuse of Reclaimed Water
         Water conservation and the promotion of reuse of reclaimed water have been established by the
         Legislature as formal state objectives.8 Reuse is defined as the deliberate application of reclaimed
         water for a beneficial purpose. 9 Reclaimed water is defined as water from a domestic wastewater10
         treatment facility that has received at least secondary treatment 11 and basic disinfection 12 for reuse.13

         Reclaimed water is reused for various purposes, such as irrigation, industrial uses, groundwater
         recharge, and prevention of saltwater intrusion in coastal groundwater aquifers. 14 Industrial uses of




5
   See PSC Order No. PSC-94-0044-FOF-EI, issued January 12, 1994, in Docket No . 930613-EI, In re: Petition to establish an
environmental cost recovery clause pursuant to Section 366.0825, Florida Statutes by Gulf Power Company. Section 120.80(13), F.S.,
exempts cost recovery clause proceedings from rulemaking requirements.
6
   S. 366.8255(l)(d), F.S. Environmental laws or regulations are defined as "all federal, state, or local statutes, administrative
regulations, orders, ordinances, resolutions, or other requirements that apply to electric utilities and are designed to protect the
environment."
7
   S. 366.8255(l)(d), F.S.
8
   Ss. 403 .064(1) and 373.250(1), F.S.
9
   R. 62-610.200(52), F.A.C.
10
    Section 367.021 (5), F.S., defines the term "domestic wastewater" to mean wastewater principally from dwellings, business
buildings, institutions, and sanitary wastewater or sewage treatment plants.
11
    Rule 62-610.200(54), F.A.C. defines the term "secondary treatment" to mean "wastewater treatment to a level that will achieve the
effluent limitations specified in paragraph 62-600.420(1 )(a), F.A.C."
12
    Rule 62-600.440(5), F.A.C., provides the requirements for basic disinfection.
13
    Section 373.019(17), F.S.; R. 62-610.200(48), F.A.C.
14
    Martinez, Christopher J. and Clark, Mark W., Reclaimed Water and Florida's Water Reuse Program, UF/IFAS Agricultural and
Biological Engineering Department (rev. 07/2012), available at
https://citeseerx.ist.psu.edu/viewdoc/download?doi=l O. l. l .590.5063&rep=rep l&type=pdf.
STORAGE NAME: h1051 .TIE.DOCX                                                                                                PAGE: 3
DATE : 3/5/2021
         reclaimed water include plant wash-down and processing and cooling water. 15 Several power plants
         throughout the state use reclaimed water for cooling purposes. 16

         Local governments are authorized and encouraged under Florida law to implement programs for the
         reuse of reclaimed water and are authorized to allocate the costs of such programs in a reasonable
         manner. 17

         Ocean Outfalls
         An ocean outfall occurs when a wastewater treatment facility or other facility discharges treated effluent
         into coastal or ocean waters. 18 State law prohibits construction of new ocean outfalls and requires that
         all six ocean outfalls in Florida cease discharging wastewater by December 31, 2025. 19 In addition,
         wastewater facilities that discharged wastewater through an ocean outfall on July 1, 2008, are required
         to install a reuse system no later than December 31, 2025. 20 Existing discharges through ocean outfalls
         were required to meet advanced wastewater treatment requirements 21 by December 31, 2018. 22

         Effect of the Bill

         The bill amends 366.8255(1)(d), F.S., by expanding the definition of environmental compliance costs to
         include the costs or expenses incurred by an electric utility, after July 1, 2021, in constructing and
         operating a wastewater reuse system pursuant to an agreement between the electric utility and a
         wastewater utility. The bill requires that the wastewater reuse system fully or partially satisfy a local
         government's reclaimed water reuse requirements under s. 403.064, F.S., 23 ors. 403.086, F.S. 24 The
         bill further requires that at least 50 percent of the produced reclaimed water is used in conjunction with
         the water requirements of one or more of the utility's electrical generating facilities.

         Under the bill, an electric utility that constructs a new wastewater reuse system that satisfies the
         expanded definition of environmental compliance costs may begin to seek recovery of all its prudently
         incurred costs and expenses through the ECRC. The electric utility's level of cost recovery through the
         ECRC may include depreciation of the capital investments in the wastewater reuse system, the
         associated direct operating and maintenance expenses, and associated indirect expenses such as
         taxes and a return on its capital investments.

         The bill has an effective date July 1, 2021.

    B. SECTION DIRECTORY:
         Section 1 Amends s. 366.8255, F.S., relating to environmental cost recovery.

        Section 2 Provides an effective date of July 1, 2021.




15 Department of Environmental Protection (DEP),       Uses of Reclaimed Water, https://floridadep.gov/water/domestic-
wastewater/content/uses-reclaimed-water (last visited Mar. 5, 2021 ).
16
   DEP, Industrial Uses of Reclaimed Water, https://floridadep.gov/water/domestic-wastewater/content/industrial-uses-reclaimed-
water (last visited Mar. 5, 2021).
17
   Section 403.064(9)-(10), F.S.
18
   DEP, Ocean Outfall Study Final Report ES-1 (Apr. 18, 2006), available at
https ://floridadep .gov/sites/default/files/OceanOutfal lStudy_0. pdf.
19
   S. 403.086(10), F.S.; Ch. 2008-232, L.O.F.
20
   S. 403.086(10)(c), F.S.
21
   S. 403.086(4), F.S.
22
   S. 403.086(1 O)(b ), F.S.
23
   Section 403.064, F.S., relates to the use of reclaimed water.
24
   Section 403.086, F.S., relates to sewage disposal facilities.
STORAGE NAME: h1051 .TIE.D0CX                                                                                               PAGE: 4
DATE: 3/5/2021
                            II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
              None.

        2. Expenditures:
              None. Any increased workload associated with the PSC's review of the ECRC petition is expected
              to be handled within existing PSC resources.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
              None.

        2.    Expenditures:
              The bill may result in higher electric rates for local governments if an electric utility's costs increase
              due to agreeme.nts with wastewater utilities for wastewater reuse systems.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        The bill may result in higher electric rates if an electric utility's costs increase due to agreements with
        wastewater utilities for wastewater reuse systems.

    D. FISCAL COMMENTS:
        None.


                                                    Ill. COMMENTS

    A. CONSTITUTIONAL ISSUES:

        1. Applicability of Municipality/County Mandates Provision:
             Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
             action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
             raise revenue in the aggregate; or reduce the percentage of state tax shared with counties or
             municipalities.

        2. Other:
             None.

    B. RULE-MAKING AUTHORITY:
        None.

    C. DRAFTING ISSUES OR OTHER COMMENTS :
       Due to economies of scale, it is possible that a joint-use wastewater reuse system will result in lower
       total costs to the electric utility and wastewater utility when compared with two independent actions by
       these parties. While it is possible that the agreement between the parties could apportion cost and
       liability responsibilities, the bill does not require the agreement to address these matters. Therefore, the


STORAGE NAME: h1051 .TIE.DOCX                                                                                     PAGE: 5
DATE: 3/5/2021
        bill may be read to create an incentive or an expectation that local governments shift cost and liability
        responsibilities from wastewater utilities to electric utilities.

        Additionally, the bill appears to alter the scope of the statute by expanding the definition of
        environmental compliance costs to include costs for projects that are not imposed on an investor-
        owned electric utility by an environmental law or regulation. The new provision is not associated with
        any government environmental mandate but rather includes the construction and operation of a
        wastewater reuse facility or system based on the decisions and agreements made by private entities.


                          IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
    Not applicable.




STORAGE NAME: h1051.TIE .DOCX                                                                               PAGE: 6
DATE: 3/5/2021
FLORIDA                        H    O   U   S   E     0   F      REPRESENTATIVES




         HB 1051                                                                                 2021




 1                                          A bill to be entitled
 2                 An act relating to environmental compliance costs;
 3                 amending s. 366.8255, F.S.; redefining the term
 4                 "environmental compliance costs" to include costs or
 5                 expenses prudently incurred by an electric utility in
 6                 complying with specified reclaimed water reuse
 7                 requirements; providing an effective date.
 8

 9      Be It Enacted by the Legislature of the State of Florida:
10
11                 Section 1.        Paragraph (d) of subsection (1) of section
12      366.8255, Florida Statutes,                  is amended to read:
13                 366.8255        Environmental cost recovery.-
14                 (1)     As used in this section, the term:
15                 ( d)    "Environmental compliance costs" includes all costs or
16      expenses incurred by an electric utility in complying with
17      environmental laws or regulations, including, but not limited
18      to:
19                 1.     Inservice capital investments,                including the electric
20      utility's last authorized rate of return on equity thereon.
21                 2.     Operation and maintenance expenses.
22                 3.     Fuel procurement costs.
23                 4.     Purchased power costs.
24              5.        Emission allowance costs.
25                 6.     Direct taxes on environmental equipment.

                                                      Page 1 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                             hb1051-00
FLORIDA                       H   O    U   S   E      0   F     REPRESENTATIVES




        HB 1051                                                                2021




26                7.   Costs or expenses prudently incurred by an electric
27      utility pursuant to an agreement entered into on or after the
28      effective date of this act and prior to October 1, 2002, between
29      the electric utility and the Florida Department of Environmental
30      Protection or the United States Environmental Protection Agency
31      for the exclusive purpose of ensuring compliance with ozone
32      ambient air quality standards by an electrical generating
33      facility owned by the electric utility.
34                8.   Costs or expenses prudently incurred for scientific
35      research and geological assessments of carbon capture and
36      storage conducted in this state for the purpose of reducing an
37      electric utility's greenhouse gas emissions when such costs or
38      expenses are incurred in joint research projects with Florida
39      state government agencies and Florida state universities.
40                9.   Costs or expenses prudently incurred by an electric
41      utility after July 1, 2021, pursuant to an aqreement between the
42      electric utility and a wastewater utility for the exclusive
43      purpose of the electric utility constructing and operating a
44      wastewater reuse system that fully or partially satisfies a
45      local government's reclaimed water reuse requirements under s .
46      403.064 ors. 403.086, where at least 50 percent of the
47      reclaimed water the reuse system produces is used in conjunction
48      with the water requirements of an electrical generating facility
49      or facilities owned by the electric utility.
50                Section 2.       This act shall take effect July 1, 2021.

                                                      Page 2 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                              hb1051-00
      TOURISM, INFRASTRUCTURE & ENERGY SUBCOMMITTEE

                   HB 1051 by Rep. Fernandez-Barquin
                 ENVIRONMENTAL COMPLIANCE COSTS

                            AMENDMENT SUMMARY
                               MARCH 9, 2021



Amendment 1 (Strike-All Amendment) by Rep. Fernandez-Barquin (# 697643)

  •   Specifies that an electric utility’s water reuse project, to be eligible for cost
      recovery as an environmental compliance cost under the bill, must:
         o Be incurred pursuant to an agreement between the electric utility and a
             governmental wastewater utility; and
         o Serve to further compliance with environmental laws or regulations that
             apply to the electric utility.
  •   Provides that at least 50 percent of the reclaimed water produced by an eligible
      project must be used in conjunction with the water requirements of an electric
      generating facility.
                                              COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                         Bill No. HB 1051   (2021)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                             (Y/N)
       ADOPTED AS AMENDED                  (Y/N)
       ADOPTED W/0 OBJECTION               (Y/N)
       FAILED TO ADOPT                     (Y/N)
       WITHDRAWN                           (Y/N)
       OTHER


 1     Committee/Subcommittee hearing bill:           Tourism, Infrastructure &
 2     Energy Subcommittee
 3     Representative Fernandez-Barquin offered the following:
 4
 5           Amendment (with title amendment)
 6             Remove everything after the enacting clause and insert:
 7             Section 1.     Paragraph (d) of subsection (1) of section
 8     366.8255, Florida Statutes, is amended to read:
 9             366.8255     Environmental cost recovery.-
10             (1)   As used in this section, the term:
11             (d)    "Environmental compliance costs" includes all costs or
12     expenses incurred by an electric utility in complying with
13     environmental laws or regulations, including, but not limited
14     to:
15           1.      Inservice capital investments, including the electric
16     utility's last authorized rate of return on equity thereon.
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                                        Page 1 of 3
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                  Bill No. HB 1051   (2021)
       Amendment No. 1



17          2.   Operation and maintenance expenses.
18          3.   Fuel procurement costs.
19          4.   Purchased power costs.
20          5.   Emission allowance costs.
21          6.   Direct taxes on environmental equipment.
22          7.   Costs or expenses prudently incurred by an electric
23     utility pursuant to an agreement entered into on or after the
24     effective date of this act and prior to October 1, 2002, between
25     the electric utility and the Florida Department of Environmental
26     Protection or the United States Environmental Protection Agency
27     for the exclusive purpose of ensuring compliance with ozone
28     ambient air quality standards by an electrical generating
29     facility owned by the electric utility.
30          8.   Costs or expenses prudently incurred for scientific
31     research and geological assessments of carbon capture and
32     storage conducted in this state for the purpose of reducing an
33     electric utility's greenhouse gas emissions when such costs or
34     expenses are incurred in joint research projects with Florida
35     state government agencies and Florida state universities.
36          9.   Costs or expenses prudently incurred by an electric
37     utility after July 1, 2021, pursuant to an agreement between the
38     electric utility and a governmental wastewater utility for the
39     exclusive purpose o f the electric utility constructing and
40     operating a wastewater reuse system where operation of the
41     system will serve to further compliance with environmental laws
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                                   Page 2 of 3
                                         COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                   Bill No. HB 1051   (2021)
       Amendment No. 1



42     or regulations that apply to the electric utility and where the
43     system fully or partially satisfies a local government's
44     reclaimed water reuse requirements under s. 403.064 ors.
45     403.086. At least 50 percent of the reclaimed water the system
46     produces must be used in conjunction with the water requirements
47     of an electrical generating facility or facilities owned by the
48     electric utility in order to offset all or part of the electric
49     utility's water use authorized by permit.
50          Section 2.   This act shall take effect July 1, 2021.
51
52
53
54                        T I T L E   A ME N D ME N T
55          Remove everything before the enacting clause and insert:
56                           A bill to be entitled
57          An act relating to environmental compliance costs;
58          amending s. 366.8255, F.S.; redefining the term
59          "environmental compliance costs" to include costs or
60          expenses prudently incurred by an electric utility in
61          complying with specified reclaimed water reuse
62          requirements; providing an effective date.




     679643 - h1051-strike.docx
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                                   Page 3 of 3
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                                     HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      PCS for HB 839    Preemption of Energy Infrastructure Regulation
SPONSOR(S): Tourism, Infrastructure & Energy Subcommittee
TIED BILLS:       IDEN./SIM. BILLS:

   REFERENCE                                                       ACTION                    ANALYST              STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

   Orig. Comm.: Tourism, Infrastructure & Energy
      Subcommittee
                                                                                             Willson   fl\/       Keating   er---"""
                                                         SUMMARY ANALYSIS
Municipalities and counties derive broad home rule authority from the Florida Constitution and general law.
Special districts are separate local governmental entities that exist for specific purposes. General law
authorizes local governments to regulate a variety of matters related to energy infrastructure, including the
ability to own and operate their own energy infrastructure.

Local governments have broad authority to legislate on any matter that is not inconsistent with federal or state
law. A local government enactment may be inconsistent with state law if (1) the Legislature has preempted a
particular subject area or (2) the local enactment conflicts with a state statute. Where state preemption applies
it precludes a local government from exercising authority in that particular area.

The bill expressly preempts the regulation of transportation energy infrastructure to the state, and specifies that
any existing or future law, ordinance, regulation, policy, or resolution that is contrary to the preemption is void.

Except as authorized by general law, the bill prohibits local governments from:
• Adopting or implementing any law, ordinance, regulation, policy, or resolution that has the effect of
   prohibiting, restricting, or requiring, the construction of new transportation energy infrastructure or the
   expansion, upgrading, or repair of existing transportation energy infrastructure, or
• imposing any requirement regulating transportation energy infrastructure that is more stringent than state
   law or DEP rule, except for certain county ordinances regulating underground petroleum storage tanks
   enacted before Sept. 1, 1984.
• Amending its comprehensive plan, land use map, zoning districts, or land development regulations in a
   manner that would conflict with an existing transportation energy infrastructure classification as a permitted
   and allowable use including, but not limited to, an amendment that causes an existing transportation
   energy infrastructure to be a nonconforming use, structure, or development.
• Imposing transportation energy infrastructure requirements that are more stringent than state law or DEP
   rule.

The bill does not limit the authority of a local government to adopt, implement, modify, and enforce applicable
federal and state requirements for transportation energy infrastructure, including safety and building standards.

The bill defines the term "transportation energy infrastructure" as "infrastructure supporting the production,
import, storage, and distribution of fuels used for transportation including, but not limited to, petroleum,
petroleum products, gasoline, diesel fuel, motor fuel, alternative fuel, marine fuel, aviation fuel, renewable fuel,
natural gas, hydrogen, and electricity."

The fiscal impact of the bill is indeterminate. See Fiscal Comments Section.

The bill provides an effective date of July 1, 2021 .




This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcs0839.TIE.D0CX
DATE: 3/5/2021
                                                              FULL ANALYSIS

                                                     I. SUBSTANTIVE ANALYSIS

     A. EFFECT OF PROPOSED CHANGES:
          Current Situation

           Local Government Powers 1

          Article VII I of the Florida Constitution establishes the authority for home rule by counties and
          municipalities in Florida. The Legislature is required to divide the state into counties 2 and has the
          authority to choose to create municipalities. 3 The Florida Constitution recognizes two types of county
          government in Florida: those operating under a county charter and those without a charter. Florida
          currently has 67 counties. 4 County ordinances must be filed with the custodian of state records, and
          take effect at the time provided by law. 5

          Noncharter Counties

          A county without a charter has such power of self-government as provided by general 6 or special law,
          and may enact county ordinances not inconsistent with general law. 7 General law authorizes counties
          "the power to carry on county government" 8 and to "perform any other acts not inconsistent with law,
          which acts are in the common interest of the people of the county, and exercise all powers and
          privileges not specifically prohibited by law." 9

          Section 125.01, F.S., provides that the legislative and governing body of a county shall have the power
          to carry on county government and that "to the extent not inconsistent with general or special law, this
          power includes, among other things, the power to:"
             • Prepare and enforce comprehensive plans for the development of the county.
             • Establish, coordinate, and enforce zoning and such business regulations as are necessary for
                 the protection of the public.
             • Establish and administer programs of housing, slum clearance, community redevelopment,
                 conservation, flood and beach erosion control, air pollution control, and navigation and drainage
                 and cooperate with governmental agencies and private enterprises in the development and
                 operation of such programs.
             • Establish, merge or abolish municipal service taxing or benefit units for any part or all of the
                 unincorporated area of the county, within which may be provided a number of essential facilities
                 and municipal services from funds derived from service charges, special assessments, or taxes.
             • Levy and collect taxes and special assessments; borrow and expend money; and issue bonds,
                 revenue certificates, and other obligations of indebtedness.
             • Adopt ordinances and resolutions necessary for the exercise of its powers and prescribe fines
                 and penalties for the violation of ordinances in accordance with law.
             • Enforce the Florida Building Code, and adopt and enforce local technical amendments thereto.




1 See generally Florida House of Representatives, Local Government Formation Manual 20 J8-2020, Chapter I.
2
  FLA. CONST. art. VIII, s. ](a).
3
  FLA. CONST. art. VIII, s. 2(a).
4
  See Local Government Formation Manual 2018-2020, Appendix B for a list of these counties and their dates of incorporation.
5
  FLA. CONST. art. VIII, s. 2(i).
6
  ch. 125, Part I, F.S.
7
  FLA. CONST. art. VIII, s. l(f).
8
  S. 125.01(1), F.S.
9
  S. 125.0l(l)(w), F.S.
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          Section 125.01, F.S., also provides:
            • The enumeration of powers herein may not be deemed exclusive or restrictive, but is deemed to
                incorporate all implied powers necessary or incident to carrying out such powers enumerated.
            • The provisions of this section shall be liberally construed in order to effectively carry out the
                purpose of this section and to secure for the counties the broad exercise of home rule powers
                authorized by the State Constitution.

           The governing body of a county also has the power to establish, and subsequently merge or abolish,
           dependent special districts including both incorporated and unincorporated areas.

          This delegation of home rule power to noncharter counties is broad. 10 Nevertheless, it is a legislative,
          not a constitutional, grant of home rule power, and as such is subject to legislative regulation through
          law in the same manner as is a municipality. 11

          Noncharter counties must organize their governing body either in the traditional commission form or the
          commission-administrator form of county government, which may be enacted by county ordinance. 12 If
          an ordinance enacted by a noncharter county conflicts with a municipal ordinance, the county
          ordinance is not effective within the municipality to the extent of the conflict. 13

          Charter Counties

          Pursuant either to general 14 or special law, a county government may be adopted by charter approved
          by the county voters. A county with a charter has all powers of self-government not inconsistent with
          general law or special law approved by the county voters. The governing body of a county operating
          under a charter may enact county ordinances not inconsistent with general law. In the event of a
          conflict between a county and municipal ordinance, the charter must provide which ordinance
          prevails. 15

          Article VIII, section 6(e) of the Florida Constitution incorporates by reference sections of the 1885
          Constitution, providing unique authorization 16 for specific home rule charters including those of Duval 17
          and Miami-Dade Counties. 18 Currently, 20 Florida counties have adopted charters. 19

          The most significant distinction between charter and non-charter county power is the constitutional
          provision for direct power of self-government to a county upon charter approval, whereas a non-charter
          county has "such power of self-government as is provided by general or special law." Charter counties
          possess greater home rule authority than non-charter counties, as follows 20 :


10
   Santa Rosa County v. Gulf Power Corp., 635 So. 2d 96 (Fla. 1st DCA. 1994).
11
   David G. Tucker, A Primer On Counties and Municipalities - Part I, 81 FLA. BAR J. 49 (2007).
12
   See ss. 125.01(1), 125.72, F.S.
u Id.
14
   S. 125.60, F.S.
15
   FLA. CONST. art. VIII, s. l(g).
16
   Article VIII, section 6(e) of the Florida Constitution, states that specific provisions for Duval, Miami-Dade, Monroe, and Hillsborough Counties
"shall remain in full force and effect as to each county affected, as if this article had not been adopted, until that county shall expressly adopt a
charter or home rule plan pursuant to this article."
17
   The consolidated government of the City of Jacksonville was created by Ch. 67-1320, Laws of Fla., adopted pursuant to article VIII, section 9 of
the 1885 Florida Constitution.
18
   Dade County, now known as Miami-Dade County, has unique home rule status. Article VIII, section 11(5) of the 1885 Florida Constitution, now
incorporated by reference in article VIII, section 6( e) of the 1968 Florida Constitution, further provided the Metropolitan Dade County Home Rule
Charter, and any subsequent ordinances enacted pursuant to the charter, may conflict with, modify, or nullify any existing local, special, or general
law applicable only to Dade County. Accordingly, Miami-Dade County ordinances enacted pursuant to the Charter may implicitly, as well as
expressly, amend or repeal a special act that conflicts with a Miami-Dade County ordinance. Effectively, the Miami-Dade Charter can only be altered
through constitutional amendment, general law, or County actions approved by referendum. Chase v. Cowart, 102 So. 2d 147, 149-50 (Fla. 1958).
19
   Alachua, Brevard, Broward, Charlotte, Clay, Columbia, Duval (consolidated government with the City of Jacksonville, ch. 67-1320, Laws of Fla.),
Hillsborough, Lee, Leon, Miami-Dade, Orange, Osceola, Palm Beach, Pinellas, Polk, Sarasota, Seminole, Volusia, and Wakulla Counties. Local
Government Formation Manual 2018-2020, p. 4.
20
   Id. at 4.
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              •    A special act of the Legislature may not diminish the home rule powers of a charter county
                   unless the act is approved by electors in the county. 21
              •    A county's charter may authorize the county to regulate an activity on a countywide basis and
                   provide that the county regulation prevails over any conflicting municipal ordinance. 22
              •    A charter county may levy any tax within its jurisdiction that is authorized by general law for a
                   municipality unless the general law prohibits levy by a county. 23

          Municipalities24

          A municipality is a local government entity created to perform functions and provide services for the
          particular benefit of the population within the municipality, in addition to those provided by the county.
          The term "municipality" may be used interchangeably with the terms "town," "city," and "village."

          Article VIII, section 2 of the Florida Constitution provides that municipalities "shall have governmental,
          corporate and proprietary powers to enable them to conduct municipal government, perform municipal
          functions and render municipal services, and may exercise any power for municipal purposes except as
          otherwise provided by law. 25

          Chapter 166, F.S., also known as the Municipal Home Rule Powers Act, 26 acknowledges the
          constitutional grant to municipalities of governmental, corporate, and proprietary power necessary to
          conduct municipal government, functions, and services. 27 Chapter 166, F.S., provides municipalities
          with broad home rule powers, respecting expressed limits on municipal powers established by the
          Florida Constitution, applicable laws, and county charters. 28 Pursuant to these powers, approximately
          32 Florida municipalities own, operate, and control electric utilities, and 26 municipalities own, operate
          and control natural gas utilities.

          Currently, there are approximately 412 municipalities in Florida. 29 With the exception of Miami-Dade
          County, the Legislature is authorized to establish or abolish municipalities or amend their charters by
          general or special law. 30 In Miami-Dade County, the Board of County Commissioners has exclusive
          authority to provide a method for establishing new municipalities and prescribing their jurisdiction and
          powers. 31

          Special Districts 32

          Special districts are separate governmental entities existing for specific purposes and having
          substantial fiscal and administrative independence from general purpose governments. Special districts
          have existed in the United States for over 200 years and are found in every state and the District of
          Columbia.

          In Florida, special districts perform a wide variety of functions, such as providing fire protection
          services, delivering urban community development services, and managing water resources. Special
          districts typically are funded through ad valorem taxes, special assessments, user fees, or impact fees .
          The Uniform Special District Accountability Act, ch. 189, F. S., generally governs the creation and


21
   FLA. CONST. art. VIII, s. l(g).
22 Id.
23 McLeod v. Orange County, 645 So. 2d 411, 413 (Fla. 1994); State ex rel. Volusia County v. Dickerson, 269 So. 2d 9, 11 (Fla. 1972).
24 See generally Local Government Formation Manual 2018-2020, Chapter 2.
25
   FLA. CONST. art. VIII, s. 2(b).
26
   S. 166.011, F.S.
27
   Local Government Formation Manual 2018-2020, p. 16.
28
   S. 166.021(4), F.S.
29
   See Local Government Formation Manual 2018-2020, Appendix E for a list of these cities and their dates of incorporation.
30
   Local Government Formation Manual 2018-2020, p. 15.
31
   FLA. CONST. art. VIII, s. 6(e), incorporating 1885 FLA. CONST. art. VIII, s. 1 l(e).
32
   See generally Local Government Formation Manual 2018-2020, Chapter 5.
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           operations of special districts; however, other general laws may more specifically govern the operations
           of certain types of special districts.

           As of February 28, 2021, there are 628 active dependent33 special districts and 1, 158 active
           independent special districts in Florida. 34 Community development districts are the most frequently
           created form of independent special district. Other common special districts in Florida include drainage
           and water control districts, fire control districts, and community redevelopment districts. 35 Currently, one
           special electric district and four special natural gas districts exist in Florida. 36

           Intergovernmental Utility Authorities

          The Florida lnterlocal Cooperation Act of 1969 (Act) allows local governmental units to make the most
          efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual
          advantage. 37 The Act provides that local governmental entities may jointly exercise their powers by
          entering into a contract in the form of an interlocal agreement. 38 Under such an agreement, the local
          governmental units may create a separate legal or administrative entity "to provide services and
          facilities in a manner and pursuant to forms of governmental organization that will accord best with
          geographic, economic, population, and other factors influencing the needs and development of local
          communities. "39

          In 1978, the Florida Municipal Power Agency (FMPA) was created through a series of interlocal
          agreements under s. 163.01, F.S., to provide wholesale power supply to municipal electric utilities.
          FMPA is currently owned by 31 municipalities. 40 Through various joint power supply projects 41 , it
          supplies all of the electrical power needs of 13 member utilities (referred to as "All-Requirements
          Project" or "ARP" members) and some of the power needs for seven other member utilities. Through
          these projects, FMPA members maintain ownership interests in various electrical power plants
          throughout Florida. FMPA manages the transmission of electrical power over facilities owned by FMPA
          or its ARP members. FMPA also manages a "power pool" that includes the generating resources of its
          All-Requirements Project, Lakeland Electric, and Orlando Utilities Commission. 42




33 Dependent special districts are under some control by a single county or municipality, whereas independent special districts do not have any

dependent characteristics. A special district that includes more than one county is independent unless it lies wholly within the boundaries of a single
municipality.
34 Florida Department of Economic Opportunity, Division of Community Development, Special District Accountability Program, Official List of

Special Districts Online, Stale Totals, lmp://dca.deo.myflorida.corn/fl1cd/sdip/Of·l icialListdco/report.cfm (last visited Feb. 28, 2021).
35 Florida Department of Economic Opportunity, Division of Community Development, Special District Accountability Program, Official List of

Special Districts Online, Special District Function Totals at hUp://w~ w.norida jobs.org/community-plan ning.;and-dcve lopmenl/as.sistance-for-
govcrnmcnts-and-organizations/special-district·accountabi lity-progrnm (last visited Feb. 28, 2021 ).
36
   See PSC, Facts & Figures of the Florida Utility Industry
hllp;//www .psc. 'tale. fl .us/Files/PDF/P ub lications/Reports/Geneml/Factsand figures/Apri 1%202020.pdf (last visited Feb. 28, 2021 ).
37
   S. 163.01(2), F.S.
38
   S. 163.01(5), F.S.
39
   S. 163.01(2), F.S.
 °
4 Currently, FMPA serves the following municipalities: Alachua, Bartow, Blountstown, Bushnell, Chattahoochee, Clewiston, Fort Meade, Fort

Pierce, Gainesville, Green Cove Springs, Havana, Homestead, Jacksonville Beach, Key West, Kissimmee, Lake Worth, Lakeland, Leesburg, Moore
Haven, Mount Dora, New Smyrna Beach, Newberry, Ocala, Orlando, Quincy, St. Cloud, Starke, Vero Beach, Wauchula, Williston, and Winter Park.
FLORIDA MUNICIPAL POWER AGENCY, Members, hHp://fmpa .com/about/members/ (last visited Feb. 28, 2021 ).
41 Section 361.12, F.S., authorizes any electric utility, or any organization, association, or separate legal entity whose membership consists only of

electric utilities, to join with any other such entity to finance, acquire, construct, manage, operate, or own an electric power supply project for the
joint generation or transmission of electrical energy, or both. Further, section 361.13, F.S., authorizes any such entity to purchase capacity or energy,
or both, in an agreed upon quantity from any project in which the purchaser has an ownership interest.
42 FLORIDA MUNICIPAL POWER AGENCY. For a list of the projects and the cities participating in each project, see FLORIDA MUNICIPAL POWER

AGENCY, Projects, https://fmpa.com/pm er-supply-pro jects/ (last visited Feb. 28, 2021 ).
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DATE: 3/5/2021
            Local Government Authority to Regulate Matters Related to Energy Infrastructure

            Local Regulation of Oil and Gas Exploration and Production

            While cities and counties do not operate oil and gas permitting programs in Florida, some, through their
            land use regulations or zoning ordinances, require special exceptions for oil and gas activities or limit
            oil and gas activities to certain zoning classifications. 43 When authorizing oil and gas exploration and
            production activities, local governments consider factors such as consistency with their comprehensive
            plan, injuries to communities or the public welfare, and compliance with zoning ordinances. 44

            In certain instances, DEP may not issue a permit without specified approval. DEP may not issue
            permits to drill a gas or oil well:
                • Within the corporate limits of a municipality without a resolution approving the permit from the
                    governing authority; 45
                • In tidal waters abutting or immediately adjacent to the corporate limits of a municipality or within
                    3 miles of such corporate limits extending from the line of mean high tide into such waters
                    without a resolution approving the permit from the governing authority; 46 or
                • On any improved beach, located outside of an incorporated town or municipality, or at a location
                    in the tidal waters abutting or immediately adjacent to an improved beach, or within 3 miles of
                    an improved beach extending from the line of mean high tide into such tidal waters without a
                    resolution approving the permit from the county commission. 47

            If the proposed oil or gas well is on lands owned by the Board of Trustees of the Internal Improvement
            Trust Fund (BOT), it may not grant a lease for gas, oil, or mineral rights:
                 • Within the corporate limits of a municipality without a resolution approving the lease from the
                     governing authority; 48
                 • In tidal waters abutting or immediately adjacent to the corporate limits of a municipality or within
                     3 miles of such corporate limits extending from the line of mean high tide into such waters
                    without a resolution approving the lease from the governing authority; 49
                 • On any improved beach, located outside of an incorporated town or municipality, or at a location
                     in the tidal waters abutting or immediately adjacent to an improved beach, or within 3 miles of
                     an improved beach extending from the line of mean high tide into such tidal waters without a
                     resolution approving the lease from the county commission; 50 or
                 • In Florida's territorial waters in the Gulf of Mexico or Atlantic Ocean. 51

            Six municipalities (Estero, Bonita Springs, Coconut Creek, Cape Coral, Dade, and Zephyrhills) and
            thirteen counties (Alachua, Bay, Brevard, Broward, Citrus, Indian River, Martin, Miami-Dade, Osceola,
            Pinellas, St. Lucie, Volusia, Wakulla, and Walton) have banned one or more forms of well stimulation
            techniques (commonly referred to as 'tracking') by ordinance. 52 Additionally, many other counties and


43
     See, e.g., Lee County's Land Development Code§§ 34-1651 and 34-145(c).
44 Jd.
45
   S. 377.24(5), F.S.
46
   S. 377.24(6), F.S.
47 S. 377.24(7), F.S.

48 S. 253.61(1)(a), F.S.
49 S. 253.61(1)(b), F.S.
50 S. 253.61(1)(c), F.S.
51 S. 253.61(1)(d), F.S.
52 Village of Estero, Ordinance No. 2015-19; Bonita Spring's Land Development Code, Chapter 4, Article VI, Division 15, Section 4-1380; Coconut

Creek's Land Development Code, Article IV, Section 13-1000; City of Cape Coral, Ordinance §3.23; City of Dade, Ordinance No. 2016-08; City of
Zephyrhills, Ordinance No. 1310-16; Alachua County's Code of Ordinances, §77.13.5; Bay County's Land Development Regulation, §311; Brevard
County's Code of Ordinances, §46-375; Citrus County's Code of Ordinances, §66-133; Indian River County's Code of Ordinances, §317.03; Osceola
County's Land Development Code, §4.12.3; Broward County's Code of Ordinances, §27-193; Martin County's Code of Ordinances, §67.441;
Miami-Dade County's Code of Ordinances, §33-437; Pinellas County's Code of Ordinances, §58-489; St. Lucie County's Code of Ordinances,
Policy 6.1.5. 7; Volusia County's Code of Ordinances, §50-42; Wakulla County's Code of Ordinances, §6-34; Walton County's Code of Ordinances,
§9-156.
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DATE: 3/5/2021
           cities have passed resolutions supporting various types of bans and moratoriums relating to well
           stimulation techniques. 53

           Other Specific Authority Related to Energy Infrastructure

           Chapter 403, F.S., provides for the regulation of air and water pollution control in Florida, which entails
           a variety of pollution-related directives to DEP and delegates specific authority to local governments
           concerning a number of issues. 54 For example, part II of ch. 403, F.S. provides a participatory role to
           local governments related to power plant and transmission line siting, 55 including a consistency
           determination with local land use plans, zoning ordinances, local environmental regulations, and other
           standards 56 , and part VIII of ch. 403, F.S., provides a participatory role to local governments related to
           the siting of natural gas transmission pipelines. 57

           Additionally, general law provides specific authority for certain local governments to:
              • Prepare and enforce comprehensive plans for the development of the county. 58
              • Establish, coordinate, and enforce zoning and such business regulations as are necessary for
                   the protection of the public. 59
              • Enter into contracts with utility companies or others for the supplying by such utility companies
                   or others of water, electricity, or telephone service to or in connection with any project. 60
              • Construct, operate and maintain gas plants and distribution systems for domestic, municipal
                   and industrial uses; 61 construct such other buildings and facilities as may be required to properly
                   and economically operate and maintain such works; 62 and make all necessary rules or
                   regulations governing the use, control and operation of such works; 63
              • Contract with private companies for the right to construct, operate and maintain gas plants and
                  distribution systems for domestic, municipal and industrial uses, including the privilege or
                  franchise of exercising its corporate powers for such terms of years and upon such conditions
                  and limitations as may be deemed expedient and for the best interest of the municipality, for up
                  to 30 years, provided that the rates or charges to be made by the private company to the
                  individual users of the utility are fixed by the municipality. 64
              • Provide and regulate roads, rights-of-way, and related transportation facilities. 65
              • Enforce the Florida Building Code and adopt and enforce local technical amendments thereto. 66


53
    See Food & Water Watch, Local Regulations Against Fracking, htt p://www.foodandwaterwaLch.org/insighl/local-resolutions-agai nst-
fracki ng#11orida (last visited Feb. 28, 2021 ). The page shows a list of local governments that passed resolutions against fracking.
54
    Section 403.021(4), F.S., declares that "local and regional air and water pollution control programs are to be supported to the extent practicable as
essential instruments to provide for a coordinated statewide program of air and water pollution prevention, abatement, and control for the securing
and maintenance of appropriate levels of air and water quality" ands. 403.061 (18), F.S., directs DEP to "Encourage local units of government to
handle pollution problems within their respective jurisdictions on a cooperative basis and provide technical and consultative assistance therefor."
55
    Section 403.506(3), F.S., states that "the filing ofan application shall not prevent an electric utility from seeking separate licenses for facilities that
are necessary to construct the electrical power plant. Licenses, permits, or approvals issued by any state, regional, or local agency for such facilities
shall be incorporated by the department into a final certification upon completion of construction." Section 403.50665, F.S.,
56
    Ss. 403.50655, F.S. 403.507(2)(a)3., F.S., 403.526(2)(a)5., F.S.
57
    Section 43.9405, F.S. states that "Except as otherwise provided in this section, the exemption ofa natural gas transmission pipeline under ss.
403.9401-403.9425 does not constitute an exemption for the natural gas transmission pipeline from other applicable permitting processes under other
provisions oflaw or local government ordinances." Additionally, s. 403.941, F.S., provides that "Each local government in which the natural gas
transmission pipeline or natural gas transmission pipeline corridor will be located shall prepare a report as to the impact of each proposed natural gas
transmission pipeline or corridor on matters within its jurisdiction, including the consistency of the proposed natural gas transmission pipeline or
corridor with all applicable local ordinances, regulations, standards, or criteria that apply to the proposed natural gas transmission pipeline or
corridor, including local comprehensive plans, zoning regulations, land development regulations, and any applicable local environmental regulations
adopted pursuant to s. 403.182 or by other means"
58
    S. 125.0l(l)(g), F.S.
59
    S. 125.0l(l)(h), F.S.
60
    S. 125.012(19), F.S.
61
    S. 180.06(8), F.S.
62
    S. 180.06(9), F.S.
63
    S. 180.13, F.S.
64
    S. 180.14, F.S.
65
    S. 125.0l(l)(m), F.S.
6 6 S. 125.0l(l)(bb), F.S.

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DATE: 3/5/2021
                •    To adopt, revise, and amend, from time to time, appropriate ordinances, rules, and regulations
                     reasonably necessary to maintain air quality standards established pursuant to state and federal
                     law, including the federal Clean Air Act. 67
                •    License the use of gas and power lines in right-of-ways. 68
                •    Issue development permits and orders. 69
                •    Code enforcement. 70

           lnterloca/ Service Boundary Agreements71

           As an alternative process for annexation, the respective governing bodies of counties, municipalities, or
           independent special districts may enter into an interlocal service boundary agreement, jointly
           determining how services are provided to residents and property. 72 The statute creates a more flexible
           process for adjusting municipal boundaries and addresses a wider range of the effects of annexation.
           The purpose is to encourage intergovernmental coordination in planning, service delivery, and
           boundary adjustments and to reduce conflicts and litigation between local entities. Local governments
           may develop their own process for reaching an interlocal service boundary agreement meeting certain
           requirements or use the process provided in statute.

           One issue that may be addressed in an interlocal service boundary agreement is identifying services
           and infrastructure not currently provided by an electric utility or a natural gas transmission company
           (the law does not affect territorial agreements between electric or public utilities or affect the
           determination of territorial disputes by the Florida Public Service Commission).

           The agreement may address other issues related to service delivery and include the transfer of
           services and infrastructure, fiscal compensation to one county, municipality, or independent special
           district from another local government or special district, and provide for the joint use of facilities and
           colocation of services. 73 The agreement may require the municipality to send the county a report on its
           planned service delivery. 74 Finally, an interlocal service boundary agreement may be valid for up to 20
           years, must include a provision requiring periodic review, and must require renegotiations to begin at
           least 18 months before the termination date. 75

          The ability of counties and municipalities to negotiate interlocal service boundary agreements does not
          impair any existing franchise agreement or contract without the consent of the franchisee or contracting
          party. Local governments retain their authority to negotiate franchise agreements for the use of public
          rights-of-way and providing service. 76




67
   S. 125.275, F.S.
68
   S. 125.42, F.S.
69
   Ss. 125.022, F.S. and 166.033, F.S.
70
   S. 166.0415, F.S.
71
   See generally Local Government Fonnation Manual 2018-2020, Chapter 3, Part XII.
72 Ch. 171, part II, F.S
73
   S. l 71.203(6)(g)-(h), F.S.
74 S. l 71.203(6)(i), F.S.
75 S. 171.203(12), F.S.
76 See S. 171.203(19)-(20), F.S. "This part does not impair any existing franchise agreement without the consent of the franchisee, any existing

territorial agreement between electric utilities or public utilities under chapter 366, or the jurisdiction of the Public Service Commission to resolve a
territorial dispute involving electric utilities or public utilities in accordance with s. 366.04. In addition, an interlocal agreement entered into under
this section has no effect in a proceeding before the Public Service Commission involving a territorial dispute. A municipality or county shall retain
all existing authority, if any, to negotiate a franchise agreement with any private service provider for use of public rights-of-way or the privilege of
providing a service"
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DATE: 3/5/2021
          State Regulation of Energy Infrastructure

          Oil and Gas Exploration and Production

          The Department of Environmental Protection's (DEP) Mining and Minerals Regulation Program in the
          Division of Water Resource Management (Division) oversees permitting for oil and gas drilling,
          production, and exploration within Florida through its Oil and Gas Program (Program). 77 The Program's
          primary responsibilities include conserving and controlling the state's oil and gas resources and
          products; protecting the correlative rights of landowners, owners and producers of oil and gas
          resources and products, and others interested in these resources and products; safeguarding the
          health, property, and public welfare of the state's residents; and protecting the environment. 78 DEP
          addresses these concerns through a system of permits and field inspections to ensure compliance.

          DEP must adopt rules and issue orders to implement and enforce the Program. 79 The rules and orders
          must ensure that all precautions are taken to prevent the spillage of oil or any other pollutant in all
          phases of the drilling for, and extracting of, oil, gas, or other petroleum products, or during the injection
          of gas into and recovery of gas from a natural gas storage reservoir. 80 DEP must adopt rules and
          orders for the following purposes:
              • To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent
                  the pollution of the fresh, salt, or brackish waters or the lands of the state and to protect the
                   integrity of natural gas storage reservoirs;
              • To prevent the alteration of the sheet flow of water in any area;
              • To require that appropriate safety equipment be installed to minimize the possibility of an
                  escape of oil or other petroleum products in the event of accident, human error, or a natural
                  disaster during drilling, casing, or plugging of any well and during extraction operations;
              • To require the drilling, casing, and plugging of wells to be done in such a manner as to prevent
                  the escape of oil or other petroleum products from one stratum to another;
              • To prevent the intrusion of water into an oil or gas stratum from a separate stratum;
              • To require a reasonable bond, or other form of security acceptable to the department,
                  conditioned upon the performance of the duty to plug properly each dry and abandoned well
                  and the full and complete restoration by the applicant of the area over which geophysical
                  exploration, drilling, or production is conducted to the similar contour and general condition in
                  existence prior to such operation;
              • To require and carry out a reasonable program of monitoring or inspection of all drilling
                  operations, producing wells, or injecting wells, including regular inspections by division
                  personnel;
              • To require the making of reports showing the location of all oil and gas wells; the making and
                  filing of logs; the taking and filing of directional surveys; the filing of electrical, sonic, radioactive,
                  and mechanical logs of oil and gas wells; if taken, the saving of cutting and cores, the cuts of
                 which shall be given to the Bureau of Geology; and the making of reports with respect to drilling
                  and production records;
              • To prevent wells from being drilled, operated, or produced in such a manner as to cause injury
                 to neighboring leases, property, or natural gas storage reservoirs;
              • To prevent the drowning by water of any stratum, or part thereof, capable of producing oil or gas
                  in paying quantities and to prevent the premature and irregular encroachment of water which
                  reduces, or tends to reduce, the total ultimate recovery of oil or gas from any pool.
              • To require the operation of wells with efficient gas-oil ratio, and to fix such ratios;
              • To prevent "blowouts," "caving," and "seepage;"
              • To prevent fires;


77
   The Oil and Gas Program is governed by part l ofch. 377, F.S., and chs. 62C-25 through 62C-30, F.A.C.
78
   S. 377.06, F.S.
79 S. 377.22(2), F.S.

80 Id.
STORAGE NAME: pcs0B39.TIE.D0CX                                                                                       PAGE: 9
DATE: 3/5/2021
                •    To identify the ownership of all oil or gas wells, producing leases, refineries, tanks, plants,
                     structures, and storage and transportation equipment and facilities;
                •    To regulate the "shooting," perforating and chemical treatment of wells;
                •    To regulate secondary recovery methods, including the introduction of gas, air, water, or other
                     substance into producing formations;
                •    To regulate gas cycling operations;
                •    To regulate the storage and recovery of gas injected into natural gas storage facilities;
                •    To, if necessary, determine, limit, and prorate the production of oil or gas, or both, from any pool
                     or field in the state;
                •    To require certificates of clearance or tenders in connection with the transportation or delivery of
                     oil or gas, or any product;
                •    To regulate the spacing of wells and to establish drilling units;
                •    To prevent, so far as is practicable, reasonably avoidable drainage from each developed unit
                     which is not equalized by counterdrainage;
                •    To require that geophysical operations requiring a permit be conducted in a manner which will
                     minimize the impact on hydrology and biota of the area, especially environmentally sensitive
                     lands and coastal areas;
                •    To regulate aboveground crude oil storage tanks in a manner which will protect the water
                     resources of the state; and
                •    To act in a receivership capacity for fractional mineral interests for which the owners are
                     unknown or unlocated and to administratively designate the operator as the lessee. 81

           DEP possesses the power and authority to issue permits:
             • For the drilling for, exploring for, or production of oil, gas, or other petroleum products that are to
                be extracted from below the surface of the land, including submerged land, only through the well
                hole drilled for oil, gas, and other petroleum products. 82
             • To explore for and extract minerals that are subject to extraction from the land by means other
                than through a well hole. 83
             • To establish natural gas storage facilities or construct wells for the injection and recovery of any
                natural gas for storage in natural gas storage reservoirs. 84

           DEP may not permit to drill a well in search of oil or gas:
             • In Florida's territorial waters in the gulf of Mexico or Atlantic Ocean; 85
             • In bays or estuaries; 86
             • Within one mile of coastline; 87
             • Within 1 mile of seaward boundary of any local, state, or federal park or aquatic or wildlife
                preserve; 88 and
             • Within 1 mile inland from Gulf, Atlantic, any bay, or any estuary 1 mile of any freshwater lake,
                river, or stream unless the DEP is satisfied that the natural resources of such bodies of water
                and shore areas of the state will be adequately protected in the event of accident or blowout. 89

           DEP monitors and inspects drilling operations, producing wells, or injecting wells. 90 Division staff
           working in the field offices inspect all permitted activities. Each permit issued by DEP must contain an
           agreement that the permit holder will not prevent inspection by Division personnel at any time. 91

81   Id.
82
   S. 377.242(1), F.S.
83
   S. 377.242(2), F.S.
84
   S. 377.242(3), F.S.
85
   Ss. 377.24(9) and 377.242(1 )(a)5., F.S.
86 S. 377.242(1)(a)l., F.S.

87 S. 377.242(l)(a)2., F.S.
88
   S. 377.242(1 )(a)3., F.S.
89
   S. 377.242(1)(a)4., F.S.
90
   Section 377.22(2)(g), F.S.
91
   Section 377.242, F.S.
STORAGE NAME: pcs0839.TIE.D0CX                                                                                   PAGE: 10
DATE: 3/5/2021
           Well Stimulation ("Fracking'J

           Well stimulation refers to any action taken by a well operator to increase the inherent productivity of an
           oil or gas well. 92 Common examples of well stimulation treatments are hydraulic fracturing and acid
           fracturing. Both hydraulic fracturing and acid fracturing involve the pressurized injection of fluids and
           chemicals to create fractures within a rock formation. The fractures then allow for more oil and gas to
           escape the rock formation and migrate up the well.

           DE P's rules currently require an operator to notify DEP before beginning any workover operation on an
           oil or gas well. 93 A workover is defined as "an operation involving a deepening, plug back, repair,
           cement squeeze, perforation, hydraulic fracturing, acidizing, or other chemical treatment which is
           performed in a production, disposal, or injection well in order to restore, sustain, or increase production,
           disposal, or injection rates." 94 Thus, an operator performing a well stimulation need not apply for a
           separate permit authorizing the well stimulation, but must only provide notification to DEP before
           beginning the operation.

           Florida Public Service Commission

           The Florida Public Service Commission ("PSC" or "commission") is an arm of the legislative branch of
           government. 95 The role of the PSC is to ensure that Florida's consumers receive some of their most
           essential services - electric, natural gas, telephone, water, and wastewater - in a safe, affordable, and
           reliable manner. 96 In doing so, the PSC exercises regulatory authority over utilities in one or more of
           three key areas: rate base/economic regulation; competitive market oversight; and monitoring of safety,
           reliability, and service issues. 97

           The PSC monitors the safety and reliability of the electric power grid 98 and may order the addition or
           repair of infrastructure as necessary. 99 Further, the PSC reviews application to determine the need for
           certain new electrical power plants 100 and certain large transmission lines 101 as part of DEP's siting
           process.

           Florida Solar Energy Center

          In order to develop a sound energy policy relating to incident solar energy 102 in Florida and ensure that
          solar energy systems manufactured or sold within the state are effective and represent a high level of
          quality, the Legislature formed the Florida Solar Energy Center (FSEC) 103 in 1976 to serve as the
          state's energy research institute. 104

92
    Keith B. Hall, Recent Developments in Hydraulic Fracturing Regulation and Litigation, 29 J. LAND USE & ENVTL. L. 29, 22 (2013).
93
    R. 62C-29.006(1), F.A.C.
94 R. 62C-25.002(61 ), F.A.C.
95
    s. 350.001, F.S.
96
    FLA. PUBLIC SERVICE COMM[SSION, The PSC 's Role, hllp://www.,)SC.Slate.ll.us (last visited Feb. 26, 2021 ).
97 Id. The PSC regulated five investor-owned electric companies, eight investor-owned natural gas utilities, and 151 investor-owned water and/or

wastewater utilities. While the PSC does not fully regulate publicly owned municipal or cooperative electric utilities, the Commission does have
jurisdiction, with regard to rate structure, territorial boundaries, bulk power supply operations, and planning, over 35 municipally owned electric
systems and 18 rural electric cooperatives. The PSC has jurisdiction, with regard to territorial boundaries and safety, over 27 municipally owned
natural gas utilities and 4 gas districts, and also exercises safety authority over all electric and natural gas systems operating in the state. FLA. PUBLIC
SERVICE COMMISSION, 2020 ANNUAL REPORT 14 (2020), ht1p://www.psc.state.J1 .us/Filcs/PDF/ Publica1fons/Rcports/Genernl/Annua lrcport:s/2020.pdC
(last visited Feb. 28, 2021 ).
98
    S. 366.04(5) & (6), F.S.
99
    S. 366.05(1) & (8), F.S.
100
     S. 403.519, F.S.
IOI S. 403.537, F.S.
to 2 "Incident" in the study of physics means "the striking of a ray of light, beam of electrons, etc., on a surface;" therefore, in this instance, "incident
solar energy" means solar energy from solar rays striking a building, etc. Dictionary.com, LLC, Incidence,
http ://ww .dictionary.com/ bro1 se/incidcnce (last visited Feb. 28, 2021).
to 3 S. 377.705(2)(a)-(b), F.S.
104
     Florida Solar Energy Center, About Us, http://www. I' cc. ucf.edu/en/about/ index.htm (last visited Feb. 26, 2021 ).
STORAGE NAME: pcs0B39.TIE.D0CX                                                                                                                       PAGE: 11
DATE: 3/5/2021
           All solar energy systems manufactured or sold in Florida must meet the standards set by FSEC. 105
           FSEC also accepts standards and certifications for solar thermal products from the Solar Rating &
           Certification Corporation (SRCC) 106 and the International Association of Plumbing and Mechanical
           Officials 107 (IAPM0). 108 In addition, the current version of the Code provides that solar energy systems
           installed in Florida are required to meet certain standards. 109

           Florida Department of Agriculture and Consumer Services

           The Florida Department of Agriculture and Consumer Services (FDACS) is responsible for the
           administration of a number of programs relating to energy infrastructure, including the Renewable
           Energy and Energy-Efficient Technologies Grants Program, 110 the Energy efficiency and conservation
           clearinghouse, 111 the Florida Green Government Grants Act, 112 the Natural gas fuel fleet vehicle rebate
           program, 113 as well as statutory authorization to allocate federal energy conservation bonds 114 and to
           post information on its website relating to alternative fueling stations or electric vehicle charging
           stations that are available for public use. 115

           Preemption

          Local governments have broad authority to legislate on any matter that is not inconsistent with federal
          or state law. A local government enactment may be inconsistent with state law if (1) the Legislature
          "has preempted a particular subject area" or (2) the local enactment conflicts with a state statute.
          Where state preemption applies it precludes a local government from exercising authority in that
          particular area. 116

          Florida law recognizes two types of preemption: express and implied. Express preemption requires a
          specific legislative statement; it cannot be implied or inferred. 117 Express preemption of a field by the


105
     s. 377.705(4)(d), F.S.
106
     SRCC produces solar thermal standards and certifications which are widely used globally. Solar Rating & Certification Corporation, About Us -
General, h!tps://solar-ra!ing.org/ (last visited Feb. 28, 2021 ).
 107
     IAPMO certifies solar thermal products for use in North America. International Association of Plumbing and Mechanical Officials, Solar Product
Certification, http://www.iapmort.org/Pages/Solar ertilicalion.aspx (last visited Feb. 28, 2021).
108
     Florida Solar Energy Center, Testing and Certification,hup://www.11cc.ucf.edu/En/certification-tc Ling/index .htm (last visited Feb. 28, 2021 ).
109
     Chapter 14 of the 51h edition of the Florida Building Code (Mechanical), Chapters 9 and 23 of the 51h edition of the Florida Building Code
(Residential), Chapter 15 of the 5th edition of the Florida Building Code (Building), and Chapter 4 of the 5th edition of the Florida Building Code
(Energy Conservation).
 110
     Section 377.804, F.S., is established within FDACS "to provide renewable energy matching grants for demonstration, commercialization,
research, and development projects relating to renewable energy technologies and innovative technologies that significantly increase energy
efficiency for vehicles and commercial buildings."
111
     Section 377.805, F.S., states that "The Office of Energy within the Department of Agriculture and Consumer Services, in consultation with the
Public Service Commission, the Florida Building Commission, and the Florida Energy Systems Consortium, shall develop a clearinghouse of
information regarding cost savings associated with various energy efficiency and conservation measures."
112
     Section 377.808, F.S., directs FDACS to "use funds specifically appropriated to award grants under this section to assist local governments,
including municipalities, counties, and school districts, in the development and implementation of programs that achieve green standards. Green
standards shall be determined by the department and shall provide for cost-efficient solutions, reducing greenhouse gas emissions, improving quality
of life, and strengthening the state's economy."
113
     Section 377.810, F.S., establishes the program within FDACS "to help reduce transportation costs in this state and encourage freight mobility
investments that contribute to the economic growth of the state."
114
     S. 37.816, F.S.
115
     S. 377.815, F.S.
116
     Wolf, The Effectiveness of Home Rule: A Preemptions and Conflict Analysis, 83 Fla. B.J. 92 (June 2009). "Historically, certain types of local
action have been found to frustrate the purpose of state law, and, thus, conflict has resulted. Specifically, Florida jurisprudence makes clear that local
action cannot l) provide for more stringent regulation than the state legislation in violation of the express wording of the statute; 2) provide for a
more stringent penalty than that allowed by state statute; 3) prohibit behavior otherwise allowed by state legislation; 4) allow behavior otherwise
prohibited by state statute; or 5) provide for a different method for doing a particular act than the method proscribed by state legislation.
Generally, a local government can pass more stringent regulations than those provided for by statute. However, if the state legislation expressly
forbids a stricter regulation or if the imposition ofa stricter regulation frustrates the purpose of the statute, the local government must abstain."
117
     See City of Hol/ywoodv. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894 So. 2d 1011, 1018
(Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309 (Fla. 2008).
STORAGE NAME: pcs0839.TIE.D0CX                                                                                                                  PAGE: 12
DA TE: 3/5/2021
           Legislature must be accomplished by clear language stating that intent. 118 In cases where the
           Legislature expressly or specifically preempts an area, there is no problem with ascertaining what the
           Legislature intended. 119 In cases determining the validity of ordinances enacted in the face of state
           preemption, the effect has been to find such ordinances null and void. 120

           Effect of the Bill

          The bill creates s. 377.707, F.S., relating to state preemption of transportation energy infrastructure
          regulation. The bill expressly preempts the regulation of transportation energy infrastructure to the
          state, and specifies that any existing or future law, ordinance, regulation, policy, or resolution that is
          contrary to the preemption is void.

          Except as authorized by general law, the bill prohibits local governments from:
             • Adopting or implementing any law, ordinance, regulation, policy, or resolution that prohibits,
                 restricts, or requires, or that has the effect of prohibiting, restricting, or requiring, the
                 construction of new transportation energy infrastructure or the expansion, upgrading, or repair of
                existing energy infrastructure, or
             • imposing any requirement regulating transportation energy infrastructure that is more stringent
                than state law or DEP rule, except for county ordinances regulating underground petroleum
                storage system construction, operation, and maintenance that were enacted pursuant to s.
                376.317(3)(a), F.S. 121
             • Amending its comprehensive plan, land use map, zoning districts, or land development
                regulations in a manner that would conflict with an existing transportation energy infrastructure
                classification as a permitted and allowable use including, but not limited to, an amendment that
                causes an existing transportation energy infrastructure to be a nonconforming use, structure, or
                development.
             • Imposing transportation energy infrastructure requirements that are more stringent than state
                law or DEP rule.

          The bill does not limit the authority of a local government to adopt, implement, modify, and enforce
          applicable federal and state requirements for transportation energy infrastructure, including safety and
          building standards. However, the bill specifies that the exercise of local authority may not conflict with
          federal or state safety and security requirements for transportation energy infrastructure.

          The bill defines the term "transportation energy infrastructure" as "infrastructure supporting the
          production, import, storage, and distribution of fuels used for transportation including, but not limited to,
          petroleum, petroleum products, gasoline, diesel fuel, motor fuel, alternative fuel, marine fuel, aviation
          fuel, renewable fuel, natural gas, hydrogen, and electricity."

          The bill provides a Legislative finding which recognizes that affordable, reliable, and sustainable
          transportation energy throughout the state is dependent upon transportation energy infrastructure
          networks extending beyond local government boundaries and recognizes the importance of consumer
          choice in the transportation energy market.




118
    Mulligan, 934 So. 2d at 1243.
119
    Sarasota Alliance/or Fair Elections, Inc. v. Browning, 28 So. 3d 880, 886 (Fla. 2010).
120
    See, e.g., Nat 'I Rifle Ass 'n ofAm., Inc. v. City ofS. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
121
   Section 376.3 l 7(3)(a), F.S. authorizes county governments to adopt countywide ordinances that regulate underground storage tanks if the
ordinance is the same as or more stringent or extensive than any state law regulating underground storage tanks and the original ordinance was
legally adopted and in force before September 1, 1984.
STORAGE NAME: pcs0839.TIE.D0CX                                                                                                             PAGE: 13
DATE: 3/5/2021
    B. SECTION DIRECTORY:
        Section 1 Creates s. 377.707, F.S.; providing a definition; providing legislative findings; preempting
                  regulation of transportation energy infrastructure to the state; prohibiting a local government
                  from regulating transportation energy infrastructure; providing an exception; providing
                  construction.

        Section 2 Provides for an effective date


                         II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

    A. FISCAL IMPACT ON STATE GOVERNMENT:

        1. Revenues:
            Indeterminate. See Fiscal Comments.

        2. Expenditures:
           Indeterminate. See Fiscal Comments.

    B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

        1. Revenues:
           Indeterminate. See Fiscal Comments.

       2. Expenditures:
           Indeterminate. See Fiscal Comments.

    C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
        Indeterminate. See Fiscal Comments.

    D. FISCAL COMMENTS:
       Due to the breadth of the bill's preemption provisions, the potential fiscal impacts to government and
       the direct economic impact on the private sector cannot be determined.


                                                 Ill. COMMENTS

   A. CONSTITUTIONAL ISSUES :

       1. Applicability of Municipality/County Mandates Provision:
          Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
          action requiring the expenditures of funds; reduce the authority that counties or municipalities have
          to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
          municipalities.

       2. Other:
          Article I, section 1O of the Florida Constitution prohibits the passage of any law which impairs the
          obligation of contracts. The Florida Supreme Court has held that, relating to the interpretation of
          substantive changes to statutory law, the general rule is that in the absence of clear legislative intent
          to the contrary, a law affecting substantive rights, liabilities and duties is presumed to apply

STORAGE NAME: pcs0839.TIE.D0CX                                                                              PAGE: 14
DATE: 3/5/2021
               prospectively but not retroactively. 122 Florida courts have also held that "Even where the Legislature
               has expressly stated that a statute will have retroactive application, this Court will reject such an
               application if the statute impairs a vested right, creates a new obligation, or imposes a new
               penalty. "123

              Current law authorizes local governments to provide and contract for certain services related to
              transportation energy infrastructure. To the extent that the bill would retroactively abrogate such
              authority and impair a local government's vested rights or contractual obligations, the bill might
              impair a local government's ability to satisfy a contractual obligation.

      B. RULE-MAKING AUTHORITY:
           None.

     C. DRAFTING ISSUES OR OTHER COMMENTS:

           The bill prohibits local regulations that" ... have the effect of prohibiting, restricting, or requiring, the
           construction of new transportation energy infrastructure or the expansion, upgrading, or repair or
           existing transportation energy infrastructure ... " This language could have the effect of rendering void a
           wide array of local regulations that only incidentally affect or are incidentally related to transportation
           energy infrastructure. Due to the breadth of this language and the variation in local government
           regulations, these impacts cannot be determined.

           It is unclear whether the bill would impact a local government's ability to implement ordinances or
           policies related to the operation of their own electric and natural gas utility infrastructure.


                                   IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




122
    Smiley v. State, 966 So. 2d 330, 336 (Fla. 2007). See also Eric Glazer and Louis Goetz, Florida Community Association Law: Contracts Clause
Application In An Ever-Changing Legislative Landscape, Florida Bar Journal, Vol. 89, No. 8 (Sept/Oct. 2015). "In Florida, all laws are presumed to
apply prospectively, unless they are remedial in nature, or designed to clarify law already in effect, and the legislature clearly expresses its intention
that the law is to apply retroactively."
123
    Menendez v. Progressive Exp. Ins. Co., Inc., 35 So.3d 873 (Fla. 2010).
STORAGE NAME: pcs0839.TIE.DOCX                                                                                                                  PAGE: 15
DATE: 3/5/2021
FLORIDA                       H   O    U   S   E      0   F      REPRESENTATIVES




         PCS for HB 839                                                                        2021




 1                                          A bill to be entitled
 2              An act relating to state preemption of transportation
 3              energy infrastructure regulation; creating s. 377.707,
 4              F.S.; providing a definition; providing legislative
 5              findings; preempting regulation of transportation
 6              energy infrastructure to the state; prohibiting a
 7              local government from regulating transportation energy
 8              infrastructure; providing an exception; providing
 9              construction; providing an effective date.
10
11      Be It Enacted by the Legislature of the State of Florida:
12
13              Section 1.         Section 377.707, Florida Statutes, is created
14      to read:
15              377.707        State preemption of transportation energy
16      infrastructure regulation.-
17               (1)      As used in this section, the term "transportation
18      energy infrastructure" means infrastructure supporting the
19      production, import, storage, and distribution of fuels used for
20      transportation in cluding, but not limited to, petroleum,
21      petroleum products, gasoline, diesel fuel, motor fuel,
22      alternative fuel, marine fuel,                    aviation fuel,     renewable fuel,
23      natural gas, hydrogen, and electricity.
24               (2)      The Legislature finds that affordable, reliable, and
25      sustainable transportation energy throughout the state is

                                                       Page 1 of 3
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FLORIDA                       H   O   U   S   E      0   F        REPRESENTATIVES




        PCS for HB839                                                             2021




26      dependent upon transportation energy infrastructure networks
                                                              I
27      extending beyond local government boundaries and recognizes the
28      importance of consumer choice in the transportation energy
29      market. Therefore, the regulation of transportation energy
30      infrastructure is expressly preempted to the state.
31               (3)    Except as authorized by general law, a local
32      government is prohibited from:
33               (a)    Adopting or implementing any law, ordinance,
34      regulation, policy, or resolution that prohibits, restricts, or
35      requires, or that has the effect of prohibiting, restricting, or
36      requiring, the construction of new transportation energy
37      infrastructure or the expansion, upgrading, or repair of
38      existing transportation energy infrastructure, or imposing any
39      requirement regulating transportation energy infrastructure that
40      is more stringent than state law or department rule, except for
41      local ordinances regulating underground petroleum storage system
42      construction, operation, and maintenance that were enacted
43      pursuant to s. 376.317 (3) (a).
44               (b)    Amending its comprehensive plan, land use map,       zoning
45      districts, or land development regulations in a manner that
46      would conflict with an existing transportation energy
47      infrastructure classification as a permitted and allowable use
48      including, but not limited to, an amendment that causes an
49      existing transportation energy infrastructure to be a
50      nonconforming use, structure, or development.

                                                      Page 2 of 3
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FLORIDA                        H   O   U   S   E      0   F      REPRESENTATIVES




         PCS for HB 839                                                                       2021




51               (c)      Imposing transportation energy infrastructure
52       requirements that are more stringent than state law or
53       department rule.
54               (4)      This section does not limit the authority of a local
55       g overnment to adopt,             implement, modify, and enforce applicable
56       federal and state requirements for transportation energy
57       infrastructure including safety and building standards. However,
58      the exercise of local authority may not conflict with federal or
59      state safety and security requirements for transportation energy
60      infrastructure.
61               (5)      An y e x isting or fut ure law,            ordinance, regulation,
62      policy, or resolution that is contrary to this section is void
63              Section 2.         This act shall take effect July 1, 2021.




                                                       Page 3 of 3
     PCS for HB 839
     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                     V


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