Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 19, 2024
Summary
Meeting packet of the Florida House of Representatives Commerce Committee Energy, Communications & Cybersecurity Subcommittee for Friday, January 19, 2024, with Mike Giallombardo as Chair and Paul Renner as Speaker. The meeting agenda lists HB 769 Assessment of Renewable Energy Source Devices by Bankson, HB 1147 Broadband by Tomkow and HB 1277 Municipal Utilities by Busatta Cabrera. The packet includes the House of Representatives staff analysis of HB 769, which begins with the Florida Constitution's authorization of ad valorem taxes by local governments. It ends with Amendment No. 1 to HB 1277, which refers to municipal water and sewer utilities and customers outside the municipal boundaries.
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“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, January 19, 2024.”
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Energy, Communications &
Cybersecurity Subcommittee
Friday, January 19, 2024
12:30 PM - 3:30 PM
Reed Hall (102 HOB)
Meeting Packet
Paul Renner Mike Giallombardo
Speaker Chair
The Florida House of Representatives
Commerce Committee
Energy, Communications & Cybersecurity Subcommittee
Paul Renner Mike Giallombardo
Speaker Chair
Meeting Agenda
Friday, January 19, 2024
12:30 pm – 3:30 pm
Reed Hall (102 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
• HB 769 Assessment of Renewable Energy Source Devices by Bankson
• HB 1147 Broadband by Tomkow
• HB 1277 Municipal Utilities by Busatta Cabrera
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HB 769
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 769 Assessment of Renewable Energy Source Devices
SPONSOR(S): Bankson
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
1) Energy, Communications & Cybersecurity Phelps Keating
Subcommittee
2) Ways & Means Committee
3) Commerce Committee
SUMMARY ANALYSIS
The Florida Constitution authorizes local governments to impose ad valorem taxes on real property and
tangible personal property and to assess such property for tax purposes. The Florida Constitution also
authorizes the Legislature to implement limitations and exemptions to ad valorem taxes. Specifically, the
Constitution authorizes the Legislature to implement limitations and exemptions to ad valorem taxes for the
assessment of solar or renewable energy source devices in determining the assessed value of real property
and tangible personal property.
The Legislature has implemented this authority by prohibiting a property appraiser who is determining the
assessed value of real property from considering any increase in the just value of residential property
attributable to the installation of a renewable energy source device, or 80 percent of the just value of non-
residential property attributable to the installation of a renewable energy source device. Current law also
provides an ad valorem tax assessment limitation of 80 percent of the assessed value of a renewable energy
source device that is considered tangible personal property.
The bill expands the ad valorem tax assessment limitation for solar and renewable energy source devices to
include infrastructure and equipment used in the collection, transmission, storage, or usage of energy derived
from biogas for conversion into renewable natural gas. In order to qualify for the ad valorem tax exemption, the
equipment must convert biogas into renewable natural gas suitable for pipeline injection.
The bill does not appear to impact state government revenues or state and local government expenditures.
The bill may have a negative impact on local government revenues as it appears to reduce the allowable
assessment of existing RNG facilities for ad valorem tax purposes. The Revenue Estimating Conference is
scheduled to meet Friday, January 19, 2024, to estimate the impact of the bill.
The bill takes effect upon becoming law.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 1/18/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
The Florida Constitution authorizes local governments to impose ad valorem taxes on real property and
tangible personal property1 and to assess such property for tax purposes.2 The ad valorem tax is an
annual tax levied by counties, cities, school districts, and some special districts based on the value of
real and tangible personal property as of January 1 of each year.3 The Florida Constitution requires that
all property be assessed at just value for ad valorem tax purposes.4 Under Florida law, “just valuation”
is synonymous with “fair market value,” and is defined as what a willing buyer would pay a willing seller
for property in an arm’s length transaction.5
The Florida Constitution also provides for specified assessment limitations, property classifications, and
exemptions for ad valorem taxes.6 Among the limitations and exemptions is authorization for the
Legislature to:
Prohibit a property appraiser from considering the installation of a solar or renewable energy
source device in determining the assessed value of real property for the purpose of ad valorem
taxation;7 and
Exempt from ad valorem taxation the assessed value of such devices subject to tangible
personal property tax.8
The Legislature has passed laws implementing this authority as discussed below.9
Limitations on Assessment of Real Property
Current law prohibits a property appraiser who is determining the assessed value of real property from
considering any increase in the just value of residential property or 80 percent of the just value of non-
residential property attributable to the installation of a renewable energy source device.10 This law
applies to a renewable energy source device installed on or after January 1, 2013, on new and existing
residential real property, and to a renewable energy source device installed on or after January 1,
2018, to all other real property.11 The statute defines the term “renewable energy source device” to
mean any of the following equipment that collects, transmits, stores, or uses solar energy, wind energy,
or energy derived from geothermal deposits:
Solar energy collectors, photovoltaic modules, and inverters;
Storage tanks and other storage systems, excluding swimming pools used as storage tanks;
1 Fla. Const. art. VII, s.9.
2 Fla. Const. art. VII, s.4.
3 Section 192.001(12), F.S., defines “real property” as land, buildings, fixtures, and all other improvements to land. The
terms “land,” “real estate,” “realty,” and “real property” may be used interchangeably. Section 192.001(11)(d), F.S., defines
“tangible personal property” as all goods, chattels, and other articles of value (but does not include the vehicular items
enumerated in article VII, section 1(b) of the Florida Constitution and elsewhere defined) capable of manual possession
and whose chief value is intrinsic to the article itself.
4 Fla. Const. art. VII, s. 4.
5 S. 193.011, F.S. See also, Walter v. Shuler, 176 So. 2d 81, 85-86 (Fla. 1965).
6 Fla. Const. art. VII, ss. 3, 4, and 6.
7 Fla. Const. art. VII, s.4(i)2.
8 Fla. Const. art. VII, s.3(e)2.
9 See s. 193.624, F.S. (prohibiting the assessment of solar or renewable energy source device in determining the value of
real property); s. 196.182, F.S. (exempting eighty percent of the assessed value of a renewable energy source device that
is considered TPP).
10 S. 193.624(2), F.S.
11 S. 193.624(3), F.S.
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Rockbeds;
Thermostats and other control devices;
Heat exchange devices;
Pumps and fans;
Roof ponds;
Freestanding thermal containers;
Pipes, ducts, refrigerant handling systems, and other equipment used to interconnect such
systems; however, such equipment does not include conventional backup systems of any
type;
Windmills and wind turbines;
Wind-driven generators;
Power conditioning and storage devices that use wind energy to generate electricity or
mechanical forms of energy; and
Pipes and other equipment used to transmit hot geothermal water to a dwelling or structure
from a geothermal deposit.12
Limitations on Assessment of Tangible Personal Property
Tangible personal property (TPP) taxes apply to persons conducting business operations. Anyone who
owns TPP and has a proprietorship, partnership, corporation, who leases, lends, or rents property, or
who is a self-employed agent or contractor, must file a TPP return to the property appraiser by April 1
each year.13 Each tangible personal property tax return is eligible for an exemption from ad valorem
taxation of up to $25,000 of assessed value.14 A single return must be filed for each site in the county
where the owner of tangible personal property transacts business. 15
Current law provides an ad valorem tax assessment limitation of 80 percent of the assessed value of a
renewable energy source device that is considered TPP, so long as the renewable energy source
device16:
Is installed on real property on or after January 1, 2018;
Was installed before January 1, 2018, to supply a municipal electric utility located within a
consolidated government; or
Was installed after August 30, 2016, on municipal land as part of a project incorporating other
renewable energy source devices under common ownership on municipal land for the sole
purpose of supplying a municipal electric utility with specified megawatts of power.
This assessment limitation does not apply to a renewable energy source device installed as part of a
project planned for a location in a fiscally constrained county. 17
Biogas
Renewable Natural Gas (RNG) is biogas 18 that has been upgraded or refined for use in place of fossil
natural gas. Under Florida Law, RNG is defined as “anaerobically generated biogas, landfill gas, or
wastewater treatment gas refined to a methane content of 90 percent or greater which may be us ed as
12 S. 193.624(1), F.S.
13 S. 193.062, F.S.; see also FLA . DEP’T OF REVENUE, Tangible Personal Property,
https://floridarevenue.com/property/Pages/ Taxpay ers_TangibleP ersonalProperty.aspx (last visited Jan. 18, 2024).
14 S. 196.183(1), F.S.
15 S. 196.183(1), F.S.
16 S. 196.182(1), F.S.
17 S. 196.182(2), F.S. Section 218.67(1), F.S. defines a fiscally constrained county as a county entirely within a rural area
of opportunity designated by the Governor or a county for which the value of a mill will raise no more than $5 million in
revenue.
18 Section 366.91(2)(a), F.S. defines biogas as “a mixture of gases produced by the biological decomposition of organic
materials which is largely comprised of carbon dioxide, hydrocarbons, and methane gas. ”
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a transportation fuel or for electric generation or is of a quality capable of being injected into a natural
gas pipeline.”19
Sources of biogas that are later refined to produce RNG include organic waste from food, agriculture,
wastewater treatment and landfills.20 In order to complete the process of converting biogas into RNG,
facilities capture the biogas, “clean” it to pipeline standards, and then inject it into the pipeline for
customer use.21 At least three facilities in Florida are converting biogas into RNG,22 with more in
development.23
Effect of Proposed Changes
The bill expands the ad valorem tax assessment limitations for solar and renewable energy source
devices to include facilities used to capture and convert biogas to RNG. Specifically, it expands the
the definition of “renewable energy source device” to include equipment that collects, transmits, stores
or uses energy derived from biogas. Under the bill, such equipment includes pipes, equipment,
construction materials, structural support, interconnection, and any other machinery used in the
production storage, compression, transportation, processing, and conversion of biogas from landfill
waste, livestock farm waste, food waste, or treated wastewater into renewable natural gas suitable for
pipeline injection.
The expanded limitations appear to affect existing facilities and facilities under construction, along with
future facilities.
The bill takes effect upon becoming law.
B. SECTION DIRECTORY:
Section 1. Amends s. 193.624, F.S., relating to renewable energy source devices.
Section 2. Provides that the bill takes effect upon becoming law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill does not appear to impact state government revenues. The Revenue Estimating
Conference is scheduled to meet Friday, January 19, 2024, to estimate the impact of the bill.
19 S. 366.91(2)(f), F.S.; see also s. 212.08(5)(v)1., F.S.
20 U.S. Environmental Protection Agency, An Overview of Renewable Natural Gas from Biogas, available at
https://www.epa.gov/sites/default/files/2020-07/documents/lmop_rng_document.pdf (last visited Jan. 16, 2024).
21 Presentation on Florida’s Energy Future (Liquefied Natural Gas, Renewable Natural Gas, and Small Modular Reactors ),
Tampa Electric Company (Dec. 6, 2023), slide 5, available at
https://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees& CommitteeId= 3226&S
ession=2024&DocumentType=Meeting+Packets&FileName=ecc+12-6-23.pdf (last visited Jan. 16, 2024).
22 Id. at slide 10, 12-16.
23 Nasdaq, Chesapeak e Utilities Corporation to Develop its First RNG Facility in Florida (Feb. 21, 2023),
https://www.nasdaq.com/press-release/chesapeake-utilities-corporation-to-develop-its-first-rng-facility-in-florida-2023-02
(last visited Jan. 16, 2024) (Chesapeake Utilities Corporation is installing a dairy manure renewable natural gas facility in
Madison County, Florida).
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2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill may have a negative impact on local government revenues as it appears to reduce the
allowable assessment of existing RNG facilities. The Revenue Estimating Conference is scheduled
to meet Friday, January 19, 2024, to estimate the impact of the bill.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Lower ad valorem taxes for taxpayers who install RNG facilities may facilitate private capital investment
into developing RNG production.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Article VII, section 18, of the Florida Constitution, may
apply because this bill reduces local government authority to raise revenue by reducing ad valorem
tax bases compared to that which would exist under current law. An exemption may apply if the fiscal
impact is insignificant. If the bill does qualify as a mandate, final passage must be approved by two-
thirds of the membership of each house of the Legislature.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 769 2024
1 A bill to be entitled
2 An act relating to assessment of renewable energy
3 source devices; amending s. 193.624, F.S.; revising
4 the definition of the term "renewable energy source
5 device"; providing an effective date.
6
7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Subsection (1) of section 193.624, Florida
10 Statutes, is amended to read:
11 193.624 Assessment of renewable energy source devices. —
12 (1) As used in this section, the term "renewable energy
13 source device" means any of the following equipment that
14 collects, transmits, stores, or uses solar energy, wind energy,
15 or energy derived from geothermal deposits or biogas:
16 (a) Solar energy collectors, photovoltaic modules, and
17 inverters.
18 (b) Storage tanks and other storage systems, excluding
19 swimming pools used as storage tanks.
20 (c) Rockbeds.
21 (d) Thermostats and other control devices.
22 (e) Heat exchange devices.
23 (f) Pumps and fans.
24 (g) Roof ponds.
25 (h) Freestanding thermal containers.
Page 1 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0769-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 769 2024
26 (i) Pipes, ducts, wiring, structural supports, refrigerant
27 handling systems, and other components used as integral parts of
28 such systems; however, such equipment does not include
29 conventional backup systems of any type or any equipment or
30 structure that would be required in the absence of the renewable
31 energy source device.
32 (j) Windmills and wind turbines.
33 (k) Wind-driven generators.
34 (l) Power conditioning and storage devices that store or
35 use solar energy, wind energy, or energy derived from geothermal
36 deposits to generate electricity or mechanical forms of energy.
37 (m) Pipes and other equipment used to transmit hot
38 geothermal water to a dwelling or structure from a geothermal
39 deposit.
40 (n) Pipes, equipment, construction materials, structural
41 support, interconnection, and any other machinery used in the
42 production, storage, compression, transportation, processing,
43 and conversion of biogas from landfill waste, livestock farm
44 waste, food waste, or treated wastewater into renewable natural
45 gas suitable for pipeline injection.
46
47 The term does not include equipment that is on the distribution
48 or transmission side of the point at which a renewable energy
49 source device is interconnected to an electric utilit y's
50 distribution grid or transmission lines.
Page 2 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0769-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 769 2024
51 Section 2. This act shall take effect upon becoming a law.
Page 3 of 3
CODING: Words stricken are deletions; words underlined are additions.
hb0769-00
Energy, Communications & Cybersecurity Subcommittee
HB 769 by Rep. Bankson
Assessment of Renewable Energy Source Devices
AMENDMENT SUMMARY
January 19, 2024
Amendment 1 by Bankson (lines 40-50):
• Specifies that “structural facilities” used in the production, storage, compression,
transportation, processing, and conversion of biogas into renewable natural gas
are considered a renewable energy source device.
• Clarifies that livestock farm waste used to produce biogas includes manure.
• Clarifies that equipment on the distribution or transmission side of the point at
which a renewable energy source device is interconnected to a natural gas
pipeline or distribution is not a renewable energy source device.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 769 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Energy, Communications &
2 Cybersecurity Subcommittee
3 Representative Bankson offered the following:
4
5 Amendment
6 Remove lines 40-50 and insert:
7 (n) Pipes, equipment, structural facilities, structural
8 support, interconnection, and any other machinery used in the
9 production, storage, compression, transportation, processing,
10 and conversion of biogas from landfill waste, livestock farm
11 waste including manure, food waste, or treated wastewater into
12 renewable natural gas suitable for pipeline injection.
13
14 The term does not include equipment that is on the distribution
15 or transmission side of the point at which a renewable energy
16 source device is interconnected to an electric utility's
836877 - h0769-line40.docx
Published On: 1/18/2024 4:48:33 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 769 (2024)
Amendment No. 1
17 distribution grid or transmission lines or a natural gas
18 pipeline or distribution system.
836877 - h0769-line40.docx
Published On: 1/18/2024 4:48:33 PM
Page 2 of 2
HB 1147
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1147 Broadband
SPONSOR(S): Tomkow
TIED BILLS: IDEN./SIM. BILLS: SB 1218
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF
1) Energy, Communications & Cybersecurity Phelps Keating
Subcommittee
2) Ways & Means Committee
3) Commerce Committee
SUMMARY ANALYSIS
Broadband Internet service has become an essential component of daily life, yet some parts of Florida lack
access to this service. Communities that lack broadband access can have difficulty attracting new capital
investment. To help address this issue, the Legislature, among other things, implemented a promotional rate
for the attachment of broadband facilities to poles owned by municipal electric utilities. The promotional rate
requires municipal electrical utilities to offer broadband Internet service providers a discounted rate of $1 per
attachment per year for any new pole attachment necessary to make broadband service available to an
unserved or underserved consumer within the utility’s territory. The promotional rate expires on July 1, 2024.
The bill extends the expiration date of the promotional rate from July 1, 2024, to December 31, 2028.
The bill does not appear to impact state government revenues or expenditures. The bill may have a negative
impact on local government revenues as a result of the discounted pole attachment charges, though the
impact will be dependent on utilization of the program by broadband providers. The discounted pole
attachment charges may provide an incentive to broadband Internet service providers for additional investment
in broadband infrastructure to reach unserved areas and unserved customers in this state.
The bill provides an effective date of June 30, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Regulation of Pole Attachments
The term pole attachment refers to the process by which communications services providers can place
communications infrastructure on existing electric utility poles. This reduces the number of poles that
must be built to accommodate utility and communications services, while reducing costs to users of
both services by allowing providers to share costs. Rules governing pole attachments seek to balance
the desire to maximize value for users of both electric and communications services with c oncerns
unique to electric utility poles, such as safety and reliability. 1 The space requested for a pole
attachment is typically one foot.
Pole attachments, originally by mutual agreement but later by federal statute and regulation, provide
non-pole-owning cable and telecommunications service providers with access to a utility’s distribution
poles, conduits, and right-of-way (ROW) for:
Installing fiber, coaxial cable or wires, and other equipment;
Building an interconnected network; and
Reaching customers.2
Congress began regulating pole attachments 3 in 1978.4 The Telecommunications Act of 19965 (the Act)
expanded pole attachment rights to telecommunications 6 carriers. The Act requires utilities 7 to provide
nondiscriminatory access to cable television systems and telecommunications carriers. The Act also
authorizes the Federal Communications Commission8 (FCC) to regulate the rates, terms, and
conditions of attachments by cable television operators to the poles, conduit, or ROW owned or
controlled by utilities in the absence of parallel state regulation.9 The Legislation withheld from FCC
jurisdiction the authority to regulate attachments where the utility is a railroad, cooperatively organized,
or owned by a government entity.10 Thus, federal pole attachment regulations apply only to investor-
owned electric utilities (IOUs). Municipal and cooperative electric utilities are specifically exempted from
federal pole attachment regulations.
The Act permits utilities to deny access where there is insufficient capacity and for reasons of safety,
reliability or generally applicable engineering purposes. In addition to establishing a right of access, the
1 American Public Power Association, Issue Brief: Preserving the Municipal Exemption from Federal Pole Attachment Regulations
(June 2023) https://www.publicpower.org/policy/preserving-municipal-exemption-federal-pole-attachment-regulations (last visited Jan.
11, 2024).
2 Evari GIS Consulting, Joint Use Pole Audit, availab le at https://www.evarigisconsulting.com/joint-use-pole-audit (last visited Jan. 12,
2024).
3
47 U.S.C. § 224(a)(4), defines ‘‘pole attachment’’ as “any attachment by a cable television system or provider of telecommunications
service to a pole, duct, conduit, or right-of-way owned or controlled by a utility.”
4 The Pole Attachment Act of 1978 granted utility pole access to cable companies, and was designed to promote utility competiti on and
service to the public. Communications Act Amendments of 1978, Pub. L. No. 95 -234. (Feb. 21, 1978).
5 Telecommunications Act of 1996, Pub. LA. No. 104-104, 110 Stat. 56 (1996).
6
The term “telecommunications” means the transmission, between or among points specified by the user, of information of the us er’s
choosing, without change in the form or content of the information as sent and received. 47 U.S.C. § 153(50).
7 “Utility’’ is defined as as “any person who is a local exchange carrier or an electric, gas, water, steam, or other public utility, and who
owns or controls poles, ducts, conduits, or rights -of-way used, in whole or in part, for any wire communications. Such term doe s not
include any railroad, any person who is cooperatively organized, or any person owned by the Federal Government or any State.” 47
U.S.C. § 224(a)(1).
8 The FCC regulates interstate and international communications by radio, television, wire, satellite and cable in all 50 states, the
District of Columbia and U.S. territories. An independent U.S. government agency overseen by Congress, the FCC is the United States'
primary authority for communications law, regulation and technological innovation. FCC, What We Do, https://www.fcc.gov/about-
fcc/what-we-do (last visited Jan. 11, 2024).
9 47 U.S.C. § 224.
10 In the Matter of Implementation of Section 224 of the Act- A Nat'l Broadb and Plan for Our Future, 26 F.C.C. Rcd. 5240, 5245–46
(2011).
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Act provides a rate methodology for “attachments used by telecommunications carriers to provide
telecommunications services”11 in addition to the existing methodology for attachments “used by a
cable television system solely to provide cable service. 12
Federal law broadly preempts the regulation of telecommunications services. 13 However, federal law
allows states to exercise reverse preemption over the FCC’s jurisdiction of communications
infrastructure access,14 meaning that once a state adopts its own utility pole access rules, the FCC
loses jurisdiction over pole attachments to the extent that the state regulates such matters.15
In 2021, Florida exercised its power under the Act to assert reverse preemption over the FCC’s
regulation of pole attachments, directing the Florida Public Service Commission (PSC) to regulate and
enforce rates, charges, terms, and conditions for pole attachments, and to ensure that they are just and
reasonable. In 2023, with the passage and enactment of HB 1221, this authority was expanded to the
regulation of attachments to poles owned by rural electrical cooperatives engaged in the provision of
broadband services.16 Presently, s. 366.04(8), F.S., regulates pole attachments for public utilities and
such rural electric cooperatives.17 The PSC does not, however, regulate pole attachments for poles
owned by municipal utilities.
Attachment of Broadband Facilities to Municipal Electric Utility Poles
The Legislature passed CS/CS/HB 1239 in 2021, creating s. 288.9963, F.S., and providing terms for
the attachment of certain broadband facilities to poles owned by municipal electric utilities.
Under this law, a broadband provider18 is currently entitled to receive a promotional rate of $1 per
wireline attachment19 per pole per year for any new attachment necessary to make broadband service 20
available to an unserved21 or underserved22 end user within a municipal electric utility service territory. 23
A broadband provider who wishes to make wireline attachments subject to this promotional rate must24:
Submit an application, including a route map, to the municipal electric utility specifying which
wireline attachments on which utility poles are necessary to extend broadband service to
unserved and underserved end users;
Include with this application the information necessary to identify which unserved or
underserved end users within the municipal electric utility’s service territory will gain access to
broadband service; and
Provide a copy of both of the above to the Florida Office of Broadband.
A broadband provider making a wireline attachment application under the promotional rate must make
a reasonable effort to make broadband service available to the unserved or underserved customers
11 47 U.S.C. § 224(e).
12 47 U.S.C. § 224(d).
13 “No State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohi biting the
ability of any entity to provide any interstate or intrastate telecommunications service.” 47 U.S.C. § 253(a).
14
47 U.S.C. § 224(c)(1).
15 Catherine J.K. Sandoval, Contested Places, Utility Pole Spaces: A Competition and Safety Framework for Analyzing Utility Pole
Association Rules, Roles, and Risks, 69 Cath. U. L. Rev. 473, 486–87 (2020).
16 Chapter 2023-199, Laws of Fla.
17 Section 364.391, F.S., provides that if a rural electric cooperative engages in the provision of broadband, all poles owned b y that
cooperative are subject to regulation under s. 366.04(8), F.S., on the same basis as if such cooperative were a public util ity under that
subsection. Sections 366.04(9) and 366.97, F.S., also provide pole attachment regulations relating to poles owned by public u tilities.
18 “Broadband provider” means a person or entity who provides fixed broadband Internet service. S. 288.9963 (2)(a), F.S.
19 “Wireline attachment” means a wire or cable and associated equipment affixed to a utility pole in the communications space of the
pole. S. 288.9963(2)(f), F.S.
20 “Broadband service” means a service that provides high-speed access to the Internet at a rate of at least 25 megabits per second in
the downstream direction and at least 3 megabits per second in the upstream direction. S. 288.9963(2)(b), F.S.
21 “Unserved” means that there is no retail access to the Internet at speeds of at least 10 m egabits per seconds for downloading and 1
megabits per second for uploading. S. 288.9963(2)(e), F.S.
22 “Underserved” means there is no retail access to the Internet at speeds of at least 25 megabits per seconds for downloading a nd 3
megabits per second for uploading. S. 288.9963(2)(d), F.S.
23 S. 288.9963(3), F.S.
24 S. 288.9963(3)(a), F.S.
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DATE: 1/18/2024
identified in the application. A provider who fails to do so within 12 months may be required to pay the
prevailing rate for those attachments that failed to make broadband service available to the intended
customers to the municipal electric utility.
The promotional rate expires on July 1, 2024.25
Effect of the Bill
The bill extends the expiration date of the $1 promotional rate from July 1, 2024, to December 31,
2028. The bill also extends the $1 promotional rate for any currently existing wireline attachments made
under the promotional rate program from July 1, 2024, to December 31, 2028.
The bill provides an effect date of June 30, 2024.
B. SECTION DIRECTORY:
Section 1. Amends s. 288.9963(3)(e), relating to promotional rates.
Section 2. Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill may have a negative impact on local government revenues as a result of the discounted
pole attachment charges. Any impact is dependent on utilization of the program by broadband
providers.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Broadband Internet providers will benefit from discounted rates for certain attachments made to
municipal electric utility poles over the next four years. These savings may provide incentives for
additional investment in broadband infrastructure to reach unserved areas and unserved customers in
this state. This may result in increased economic activity in areas that currently lack access to
broadband Internet service.
D. FISCAL COMMENTS:
None.
25 S. 288.9963(3)(e), F.S.
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DATE: 1/18/2024
III. 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:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 1/18/2024
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1147 2024
1 A bill to be entitled
2 An act relating to broadband; amending s. 288.9963,
3 F.S.; extending the expiration date of a certain
4 promotional rate; providing an effective date.
5
6 Be It Enacted by the Legislature of the State of Florida:
7
8 Section 1. Paragraph (e) of subsection (3) of section
9 288.9963, Florida Statutes, is amended to read:
10 288.9963 Attachment of broadband facilities to municipal
11 electric utility poles.—
12 (3) Beginning July 1, 2021, a broadband provider shall
13 receive a promotional rate of $1 per wireline attachment per
14 pole per year for any new attachment necessary to make broadband
15 service available to an unserved or underserved end user within
16 a municipal electric utility service territory for the time
17 period specified in this subsection.
18 (e) The promotional rate of $1 per wireline attachment per
19 pole per year applies to all pole attachments made pursuant to
20 this subsection until December 31, 2028 July 1, 2024.
21 Section 2. This act shall take effect June 30, 2024.
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hb1147-00
HB 1277
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1277 Municipal Utilities
SPONSOR(S): Busatta Cabrera
TIED BILLS: IDEN./SIM. BILLS: SB 1510
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy, Communications & Cybersecurity Bauldree Keating
Subcommittee
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Pursuant to s. 2(b), Art. VIII of the State Constitution, municipalities have the governmental, corporate, and
proprietary powers to enable them to conduct municipal government, perform municipal functions, and render
municipal services. Municipalities may provide utilities to citizens and entities within the municipality’s
corporate boundaries, in unincorporated areas, and even in other municipalities.
Many municipalities own and operate electric and natural gas utilities. Municipalities are also authorized by
general law to provide water and sewer utility services. A municipality that operates a water or sewer utility
outside of its municipal boundaries may impose higher rates, fees, and charges on consumers receiving
service outside of its corporate boundaries as compared to the rates, fees, and charges imposed on
consumers within its boundaries. Municipalities routinely transfer a portion of their utility earnings to their
general funds for non-utility purposes, though the amounts and percentages vary widely among municipalities.
The bill places limits on the portion of municipal utility revenues that may be used to fund or finance a
municipality’s non-utility related general government functions. In doing so, the bill limits the rate of transfer for
municipal electric, natural gas, and water or wastewater utilities. Under the bill, the greater the proportion of
customers outside of the city boundaries that a municipal utility serves, the less the municipal utility may
transfer. However, if a municipal utility is governed by a utility authority board that provides for representation
of retail customers located outside the municipal boundaries approximately proportionate to the percentage of
such customers, then transfers of revenue are not subject to a reduced cap.
The bill removes a provision allowing water or sewer utilities to add, for consumers outside of its boundaries, a
surcharge of up to 25 percent of the rates, fees, and charges imposed on consumers within its boundaries.
Furthermore, the bill changes the limit on the rates, fees, and charges such utility can impose on customers
outside of municipal boundaries to no more than 25 percent above the total amount the municipal water or
sewer utility charges customers within the municipal boundaries, provided rates for outside customers are set
in a public hearing using the same methods as rates for other customers.
The bill limits the rates, fees, and charges that a municipal water or sewer utility that provides service to
consumers within the boundaries of a separate municipality, using a water treatment plant or sewer treatment
plant located within the boundaries of that separate municipality, by requiring that such charges are no more
that the rates, fees, and charges imposed on consumers inside its own municipal boundaries.
The bill does not impact state government revenues or state or local government expenditures. The bill may
have a negative fiscal impact on certain local revenues. See Fiscal Analysis & Economic Impact Statement.
The bill provides an effective date of July 1, 2025.
This bill may be a county or municipality mandate requiring a two-thirds vote of the membership of the
House. See Section III.A.1 of the analysis.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1277.ECC
DATE: 1/17/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Local Government Utility Services
Pursuant to s. 2(b), Art. VIII of the State Constitution, municipalities have the governmental, corporate,
and proprietary powers to enable them to conduct municipal government, perform municipal functions,
and render municipal services. Municipalities may exercise any power for municipal purposes, except
when expressly prohibited by law. 1 The legislative body of each municipality has the power to enact
legislation on any subject upon which the state Legislature may act with certain exceptions. 2 Under
their home rule power and as otherwise provided or limited by law or agreement, municipalities may
provide utilities to citizens and entities within the municipality’s corporate boundaries, in unincorporated
areas, and even in other municipalities.
Many municipalities own and operate electric utilities and natural gas utilities and govern the operation
of those utilities through ordinance, code, or policies. Currently, there are 33 municipal electric utilities
in the state. 3 Municipal electric and natural gas utility rates are not directly regulated by the Florida
Public Service Commission (PSC), however, the PSC does have jurisdiction over municipal electric
utilities for matters related to rate structure, power plant transmission line site certification, general
reporting jurisdiction, service territory and territory disputes, energy efficiency reporting, ten year site
plans, reporting on system hardening and resiliency, reporting on net metering, audits related to
regulatory assessment fees, monitoring renewable energy, reporting on facilities inspection and
vegetation management, and grid bill jurisdiction. 4
Municipalities are authorized by general law to provide water and sewer utility services. 5 With respect
to public works projects, including water and sewer utility services, 6 municipalities may extend and
execute their corporate powers outside of their corporate limits as “desirable or necessary for the
promotion of the public health, safety and welfare.” 7 A municipality may not extend or apply these
corporate powers within the corporate limits of another municipality. 8 However, it may permit any other
municipality and the owners of lands outside its corporate limits or within the limits of another
municipality to connect with its water and sewer utility facilities and use its services upon agreed terms
and conditions. 9 An informal study conducted in 2014 indicated that approximately 250 municipalities
provide water service and approximately 220 municipalities provide wastewater service. Of these
1 Section 166.021(2), F.S., provides that any activity or power which may be exercised by the state or its political
subdivisions is considered a municipal purpose.
2 Pursuant to s. 166.021(3), F.S., a municipality may not enact legislation on the following: the subjects of annexation,
merger, and exercise of extraterritorial power, which require general law or special law; any subject expressly prohibited
by the constitution; any subject expressly preempted to state or county government by the constitution or by general law;
and any subject preempted to a county pursuant to a county charter adopted under the authority of the State constitution.
3 Presentation on Florida Public Power, Florida Municipal Electric Association (Feb. 9, 2023), slide 2, available at
https://www.myfloridahouse.gov/Sections/Documents/publications.aspx?CommitteeId=3226&PublicationType=Committee
s&DocumentType=Meeting%20Packets&SessionId=99 (last visited Jan. 16, 2024)
4 Id. at slide 3.
5 Pursuant to s. 180.06, F.S., a municipality may “provide water and alternative water supplies;” “provide for the collection
and disposal of sewage, including wastewater reuse, and other liquid wastes;” and “construct reservoirs, sewerage
systems, trunk sewers, intercepting sewers, pumping stations, wells, siphons, intakes, pipelines, distribution systems,
purification works, collection systems, treatment and disposal works” to accomplish these purposes.
6 Other public works projects authorized under s. 180.06, F.S., include alternative water supplies, maintenance of water
flow and bodies of water for sanitary purposes, garbage collection and disposal, airports, hospitals, jails, golf courses, gas
plants and distribution systems, and related facilities.
7 S. 180.02(2), F.S.
8 Id.
9 S. 180.19, F.S.
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municipalities, the study found that approximately 140 provide water and/or waste water services to
customers outside of their municipal boundaries, which may include customers in unincorporated areas
of counties or in other municipalities. 10 These utility systems are exempt from PSC jurisdiction.
A municipality that operates a water or sewer utility outside of its municipal boundaries may impose
higher rates, fees, and charges on consumers receiving service outside of its corporate boundaries as
compared to the rates, fees, and charges imposed on consumers within its boundaries. The
municipality can accomplish this in two ways:
• First, for consumers outside of its boundaries, it may add a surcharge of up to 25 percent of the
rates, fees, and charges imposed on consumers within its boundaries. This mechanism does
not require a public hearing. 11
• Second, it may set separate rates, fees, and charges for consumers outside its boundaries
based on the same factors used to set rates for consumers within its boundaries. It may add a
surcharge of up to 25 percent of these charges, provided that the total of all such rates, fees,
and charges for service to consumers outside its boundaries may not exceed the total charges
to consumers within its boundaries by more than 50 percent for corresponding service. Rates
set in this manner require a public hearing at which all users served or to be served by the
water or sewer utilities and all other interested persons will have an opportunity to be heard
concerning the proposed rates. 12
There is no central repository for information concerning municipal water or sewer service rates that
identifies municipalities that impose higher rates on consumers outside of the municipal boundaries, the
specific mechanism used by such municipalities to establish such rates, or the level of any additional
charge or surcharge imposed.
Most municipal utility systems are governed by the municipality’s governing body (i.e., the city
commission). Six municipal electric utility systems in Florida are governed by separate utility boards, or
“authorities,” which are typically appointed by the municipality’s governing body. 13 These utility
authorities vary in structure, though the charter documents for each generally address the powers and
duties of the authority (including terms related to rate-setting, financing, acquisitions, and eminent
domain), the selection process for authority members (including qualifications and terms of office), the
management and personnel of the authority, the transfer of revenues from utility operations to the
municipality, and the degree of continuing oversight by the municipal governing body.
Current law authorizes municipalities to raise amounts of money which are necessary for the conduct of
the municipal government. A municipality may do so by taxation and licenses authorized by Florida’s
constitution or general law, or by user charges or fees authorized by ordinance. 14 Municipalities
routinely transfer a portion of their utility earnings to their general funds for non-utility purposes, though
the amounts and percentages may vary widely among municipalities. 15 These transfers may be limited
in some circumstances by ordinance, but they are not governed by state law.
10 Analysis of House Bill 813 (2014), Florida House of Representatives.
11 S. 180.191(1)(a), F.S.
12 S. 180.191(1)(b), F.S.
13 The Keys Energy Services Utility Board is the only utility authority in the state with elected board members. Key West
has an elected board, with 2 of the 5 members from outside the city limits. Presentation on Florida Public Power, Florida
Municipal Electric Association supra n. 3, slide 8.
14 S. 166.201, F.S.
15 Presentation on Florida Public Power, Florida Municipal Electric Association supra n. 3, slide 6.
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DATE: 1/17/2024
Effect of the Bill
The bill places limits on the portion of municipal utility revenues that may be used to fund or finance a
municipality’s non-utility related general government functions. In doing so, the bill limits the rate of
transfer for municipal electric, natural gas, and water or wastewater utilities. Under the bill, the greater
the proportion of customers outside of the city boundaries that a municipal utility serves, the less the
municipal utility may transfer.
Under the bill, revenues transferred to fund or finance non-utility governmental functions, which were
generated by a municipal electric utility, may not exceed a rate equal to the amount derived by applying
the average of the midpoints of the rates of return on equity approved by the PSC for each investor-
owned electric utility in the state.
Similarly, the bill limits revenues transferred to fund or finance non-utility governmental functions, which
were generated by a municipal natural gas utility by capping the transfer at a rate equal to the amount
derived by applying the average of the midpoints of the rates of return on equity approved by the PSC
for each investor-owned natural gas utility in the state.
Under the bill, revenues generated from a municipal water or wastewater utility may only be transferred
at a rate equal to the amount derived by applying the rate of return on equity established by the PSC
under s. 367.081(4)(f), F.S. 16
The bill provides for reduction to these transfer caps based on the percentage of utility customers
outside the city boundaries, as measured by total meters served. Under the bill, if more than:
• 15 percent of a municipal utility’s customers are located outside of municipal boundaries, then
the transfer rate applied to utility revenues will be reduced by 150 basis points. 17
• 30 percent of a municipal utility’s customers are located outside of municipal boundaries, then
the transfer rate applied to utility revenues will be reduced by 300 basis points.
• 45 percent of a municipal utility’s customers are located outside of municipal boundaries, then
the transfer rate applied to utility revenues will be reduced by 450 basis points.
However, if a municipal utility is governed by a utility authority board that, through the election of voting
members from outside the municipal boundaries, provides for representation of retail customers located
outside the municipal boundaries approximately proportionate to the percentage of such customers, as
measured by total meters served, then transfers of revenue are not subject to the above reductions.
The bill removes the provision allowing water or sewer utilities to add, for consumers outside of its
boundaries, a surcharge of up to 25 percent of the rates, fees, and charges imposed on consumers
within its boundaries. Furthermore, the bill changes the limit on the rates, fees, and charges such utility
can impose on customers outside of municipal boundaries to no more than 25 percent above the total
amount the municipal water or sewer utility charges customers within the municipal boundaries,
provided rates for outside customers are set in a public hearing using the same methods as rates for
other customers.
The bill limits the rates, fees, and charges that a municipal water or sewer utility that provides service to
consumers within the boundaries of a separate municipality, using a water treatment plant or sewer
treatment plant located within the boundaries of that separate municipality, by requiring that such
charges are no more than the rates, fees, and charges imposed on consumers inside its own municipal
boundaries.
16 Section 367.081, F.S., permits the PSC to establish a leverage formula that reasonably reflect the range of returns on
common equity for an average water or wastewater utility and which must be used to calculate the last authorized rate of
return on equity for any utility which otherwise would have no established rate of return on equity.
17 Basis points are commonly used to measure interest rates and percentages in finance, showing the change in the value
or rate of a financial instrument, such as 1% change equals a change of 100 basis points and 0.01% change equals one
basis point. Jason Fernando, Basis Point (BPS) Explained for Interest Rates and Investments (Oct. 31, 2023),
Investopedia, https://www.investopedia.com/terms/b/basispoint.asp (last visited Jan. 17, 2024).
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The bill provides an effective date of July 1, 2025.
B. SECTION DIRECTORY:
Section 1: Amends s. 166.201, F.S., relating to taxes and charges.
Section 2: Amends s. 180.191, F.S., relating to limitation on rates charged consumer outside city limits.
Section 3: Provides an effective date of July 1, 2025.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill will likely have a negative fiscal impact on local governments which own and operate water
or wastewater utilities, as it reduces the maximum amount that municipal water and sewer utilities
can charge customers outside the municipal boundaries.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may result in cost savings to municipal water and sewer utility customers located outside of
municipal boundaries. A municipal water or sewer utility may increase rates for other customers to
mitigate revenue impacts.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18(b), of the Florida Constitution may
apply because this bill reduces the maximum amount that municipal water and sewer utilities can
charge customers outside the municipal boundaries. If the bill does qualify as a mandate, final
passage must be approved by two-thirds of the membership of each house of the Legislature.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not require or authorize rulemaking.
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DATE: 1/17/2024
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.
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DATE: 1/17/2024
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1277 2024
1 A bill to be entitled
2 An act relating to municipal utilities; amending s.
3 166.201, F.S.; authorizing a municipality to fund or
4 finance general government functions with a portion of
5 revenues from utility operations; establishing limits
6 on utility revenue transfers for municipal utilities;
7 amending s. 180.191, F.S.; modifying provisions
8 relating to permissible rates, fees, and charges
9 imposed by municipal water and sewer utilities on
10 customers located outside the municipal boundaries;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Section 166.201, Florida Statutes, is amended
16 to read:
17 166.201 Taxes and charges.—
18 (1) A municipality may raise, by taxation and licenses
19 authorized by the constitution or general law, or by user
20 charges or fees authorized by ordinance, amounts of money which
21 are necessary for the conduct of municipal government and may
22 enforce their receipt and collection in the manner prescribed by
23 ordinance not inconsistent with law.
24 (2)(a) A municipality that owns and operates an electric,
25 natural gas, water, or wastewater utility may fund or finance
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HB 1277 2024
26 general government functions using a portion of the revenues
27 generated from rates, fees, and charges for the provision of
28 such utility service. The portion of utility revenues that may
29 be used during a fiscal year to fund or finance general
30 government functions, after payment of all utility expenses, may
31 not exceed:
32 1. For revenues generated from electric utility
33 operations, a transfer rate equal to the amount derived by
34 applying the average of the midpoints of the rates of return on
35 equity approved by the Public Service Commission for each
36 investor-owned electric utility in the state to the municipal
37 electric utility's revenues.
38 2. For revenues generated from natural gas utility
39 operations, a transfer rate equal to the amount derived by
40 applying the average of the midpoints of the rates of return on
41 equity approved by the Public Service Commission for each
42 investor-owned natural gas utility in the state to the municipal
43 natural gas utility's revenues.
44 3. For revenues generated from water or wastewater
45 operations, a transfer rate equal to the amount derived by
46 applying the rate of return on equity established by the Public
47 Service Commission under s. 367.081(4)(f) to the revenues of the
48 municipal water or wastewater utility.
49 (b) Except as provided in paragraph (c), the transfer rate
50 applied to municipal utility revenues under subparagraphs (a)1.-
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51 3. shall be reduced as follows:
52 1. If more than 15 percent of a municipal utility's retail
53 customers, as measured by total meters served, are located
54 outside the municipal boundaries, the transfer rate applied to
55 utility revenues shall be reduced by 150 basis points.
56 2. If more than 30 percent of a municipal utility's retail
57 customers, as measured by total meters served, are located
58 outside the municipal boundaries, the transfer rate applied to
59 utility revenues shall be reduced by 300 basis points.
60 3. If more than 45 percent of a municipal utility's retail
61 customers, as measured by total meters served, are located
62 outside the municipal boundaries, the transfer rate applied to
63 utility revenues shall be reduced by 450 basis points.
64 (c) The reductions specified in paragraph (b) do not apply
65 to a municipal utility service if the utility service is
66 governed by a utility authority board that, through the election
67 of voting members from outside the municipal boundaries,
68 provides for representation of retail customers located outside
69 the municipal boundaries approximately proportionate to the
70 percentage of such customers, as measured by total meters
71 served, that receive service from the utility.
72 Section 2. Subsection (1) of section 180.191, Florida
73 Statutes, is amended to read:
74 180.191 Limitation on rates charged consumer outside city
75 limits.—
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76 (1) Any municipality within the state operating a water or
77 sewer utility outside of the boundaries of such municipality
78 shall charge consumers outside the boundaries rates, fees, and
79 charges determined in one of the following manners:
80 (a) It may charge the same rates, fees, and charges as
81 consumers inside the municipal boundaries. However, in addition
82 thereto, the municipality may add a surcharge of not more than
83 25 percent of such rates, fees, and charges to consumers outside
84 the boundaries. Fixing of such rates, fees, and charges in this
85 manner shall not require a public hearing except as may be
86 provided for service to consumers inside the municipality.
87 (b)1. It may charge rates, fees, and charges that are just
88 and equitable and which are based on the same factors used in
89 fixing the rates, fees, and charges for consumers inside the
90 municipal boundaries. In addition thereto, the municipality may
91 add a surcharge not to exceed 25 percent of such rates, fees,
92 and charges for said services to consumers outside the
93 boundaries. However, the total of all Such rates, fees, and
94 charges for the services to consumers outside the boundaries may
95 shall not exceed 25 be more than 50 percent in excess of the
96 total amount the municipality charges consumers served within
97 the municipality for corresponding service. No such rates, fees,
98 and charges shall be fixed until after a public hearing at which
99 all of the users of the water or sewer systems; owners, tenants,
100 or occupants of property served or to be served thereby; and all
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101 others interested shall have an opportunity to be heard
102 concerning the proposed rates, fees, and charges. Any change or
103 revision of such rates, fees, or charges may be made in the same
104 manner as such rates, fees, or charges were originally
105 established, but if such change or revision is to be made
106 substantially pro rata as to all classes of service, bo th inside
107 and outside the municipality, no hearing or notice shall be
108 required.
109 2. Any municipality within the state operating a water or
110 sewer utility that provides service to consumers within the
111 boundaries of a separate municipality through the use of a water
112 treatment plant or sewer treatment plant located within the
113 boundaries of that separate municipality may charge consumers in
114 the separate municipality no more than the rates, fees, and
115 charges imposed on consumers inside its own municipal
116 boundaries.
117 Section 3. This act shall take effect July 1, 2025.
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hb1277-00
Energy, Communications & Cybersecurity Subcommittee
HB 1277 by Rep. Busatta Cabrera
Municipal Utilities
AMENDMENT SUMMARY
January 19, 2024
Amendment 1 by Busatta Cabrera (strike-all):
• Provides that a new, extended, renewed, or materially amended agreement for
the provision of municipal utility service at retail to customers located in another
municipality or in an unincorporated area must be written and may not become
effective before a public meeting is held in the service area for the purpose of
providing certain information and soliciting public input on matters related to the
agreement.
• Requires annual customer meetings to be held in such service areas for the
purpose of soliciting public input on utility-related matters.
• Requires that these meetings be held in conjunction with specified governing
bodies for the areas in which service is provided.
• Provides that a municipality that generates revenue from the provision of utility
service to customers located in another municipality or in an unincorporated area
may not use more than 10 percent of the gross revenues generated from such
services to fund or finance general government functions.
o Removes provisions that limit transfers from municipal utility revenues
based on rates of return on equity approved by the Public Service
Commission for investor-owned utilities and based on the proportion of
customers served beyond municipal boundaries.
• Requires annual data reporting regarding the provision of municipal utility service
to customers located in another municipality or in an unincorporated area.
• Retains provisions that reduce the maximum rate differential between municipal
water and sewer utility customers located within and outside the municipal
boundaries.
• Retains provisions that prohibit the imposition of a surcharge on customers
located in certain other municipalities.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1277 (2024)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Energy, Communications &
2 Cybersecurity Subcommittee
3 Representative Busatta Cabrera offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Section 180.19, Florida Statutes, is amended to
8 read:
9 180.19 Use by other municipalities and by individuals
10 outside corporate limits.—
11 (1) A municipality which constructs any works as are
12 authorized by this chapter, may permit any other municipality
13 and the owners or association of owners of lots or lands outside
14 of its corporate limits or within the limits of any other
15 municipality, to connect with or use the utilities mentioned in
16 this chapter upon such terms and conditions as may be agreed
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Amendment No. 1
17 between such municipalities, and the owners or association of
18 owners of such outside lots or lands.
19 (2) Any private company or corporation organized to
20 accomplish the purposes set forth in this chapter, which has
21 been granted a privilege or franchise by a municipality, may
22 permit the owners or association of owners of lots or lands
23 outside of the boundaries of said municipality granting said
24 privilege or franchise, or other municipality, to connect with
25 and use the utility operated by the said private company or
26 corporation upon such terms as may be agreed between the said
27 private company or corporation and the owners or association of
28 owners of said lots or lands or the said municipality.
29 (3)(a) A new agreement, or an extension, renewal, or
30 material amendment of an existing agreement, to provide
31 electric, natural gas, water, or sewer utility service at retail
32 pursuant to subsection (1) must be written and may not become
33 effective before the municipality that provides service or
34 intends to provide the service, in conjunction with the
35 governing body of each municipality and unincorporated area
36 served or to be served, has conducted a public meeting within
37 each municipality and unincorporated area served or to be served
38 for purposes of providing information and soliciting public
39 input on:
40 1. The nature of the service to be provided or changes to
41 the service being provided;
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42 2. The rates, fees, and charges to be imposed for the
43 services provided or intended to be provided, including any
44 differential with the rates, fees, and charges imposed for the
45 same service on customers located within the boundaries of the
46 serving municipality, the basis for the differential, and the
47 length of time that the differential is expected to exist;
48 3. The extent to which revenues generated from the
49 provision of the service will be used to fund or finance non-
50 utility government functions or services; and
51 4. Any other matters deemed relevant by the parties to
52 the agreement.
53 (b) Rates, fees, and charges imposed for water or sewer
54 utility service provided pursuant to subsection (1) shall comply
55 with s. 180.191.
56 (c) Each municipality that provides electric, natural gas,
57 water, or sewer utility service pursuant to subsection (1), in
58 conjunction with the governing body of each municipality and
59 unincorporated area in which it provides service, must annually
60 conduct a customer meeting within each such municipality and
61 unincorporated area for purposes of soliciting public input on
62 utility-related matters, including rates and service.
63 (d) For purposes of this subsection, “governing body”
64 refers to each:
65 1. Governing body of a municipality in which service is
66 provided or proposed to be extended.
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Amendment No. 1
67 2. Board of county commissioners of a county in which
68 service is provided or proposed to be extended, if service is
69 provided or will be extended in an unincorporated area within
70 the county.
71 (4) A municipality that generates revenue from the
72 provision of electric, natural gas, water, or sewer utility
73 service pursuant to subsection (1) may not use more than 10
74 percent of the gross revenues generated from such services to
75 fund or finance general government functions.
76 (5) By November 1, 2024, and annually thereafter, each
77 municipality that provides electric, natural gas, water, or
78 sewer utility service pursuant to subsection (1) must provide a
79 report to the Florida Public Service Commission that identifies,
80 for each type of utility service provided by the municipality:
81 1. The number and percentage of customers that receive
82 utility service provided by the municipality at a location
83 outside the boundaries of the municipality;
84 2. The volume and percentage of sales made to such
85 customers, and the gross revenues generated from such sales; and
86 3. Whether the rates, fees, and charges imposed on
87 customers that receive service at a location outside the
88 municipality’s boundaries are different than the rates, fees,
89 and charges imposed on customers within the boundaries of the
90 municipality, and, if so, the amount and percentage of the
91 differential.
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Amendment No. 1
92
93 The commission shall compile this information and submit a
94 report of this information to the Speaker of the House of
95 Representatives, the Senate President, and the Governor by
96 January 31, 2025, and annually thereafter. This paragraph does
97 not modify or extend the authority of the commission otherwise
98 provided by law with respect to any municipal utility that is
99 required to comply with this paragraph.
100 Section 2. Subsection (1) of section 180.191, Florida
101 Statutes, is amended, and a new subsection (5) is added to that
102 section, to read:
103 180.191 Limitation on rates charged consumer outside city
104 limits.—
105 (1) Any municipality within the state operating a water or
106 sewer utility outside of the boundaries of such municipality
107 shall charge consumers outside the boundaries rates, fees, and
108 charges determined in one of the following manners:
109 (a) It may charge the same rates, fees, and charges as
110 consumers inside the municipal boundaries. However, in addition
111 thereto, the municipality may add a surcharge of not more than
112 25 percent of such rates, fees, and charges to consumers outside
113 the boundaries. Fixing of such rates, fees, and charges in this
114 manner shall not require a public hearing except as may be
115 provided for service to consumers inside the municipality.
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116 (b)1. It may charge rates, fees, and charges that are just
117 and equitable and which are based on the same factors used in
118 fixing the rates, fees, and charges for consumers inside the
119 municipal boundaries. In addition thereto, the municipality may
120 add a surcharge not to exceed 25 percent of such rates, fees,
121 and charges for said services to consumers outside the
122 boundaries. However, the total of all Such rates, fees, and
123 charges for the services to consumers outside the boundaries may
124 shall not exceed 25 be more than 50 percent in excess of the
125 total amount the municipality charges consumers served within
126 the municipality for corresponding service. No such rates, fees,
127 and charges shall be fixed until after a public hearing at which
128 all of the users of the water or sewer systems; owners, tenants,
129 or occupants of property served or to be served thereby; and all
130 others interested shall have an opportunity to be heard
131 concerning the proposed rates, fees, and charges. Any change or
132 revision of such rates, fees, or charges may be made in the same
133 manner as such rates, fees, or charges were originally
134 established, but if such change or revision is to be made
135 substantially pro rata as to all classes of service, both inside
136 and outside the municipality, no hearing or notice shall be
137 required.
138 2. Any municipality within the state operating a water or
139 sewer utility that provides service to consumers within the
140 boundaries of a separate municipality through the use of a water
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Amendment No. 1
141 treatment plant or sewer treatment plant located within the
142 boundaries of that separate municipality may charge consumers in
143 the separate municipality no more than the rates, fees, and
144 charges imposed on consumers inside its own municipal
145 boundaries.
146
147 -----------------------------------------------------
148 T I T L E A M E N D M E N T
149 Remove everything before the enacting clause and insert:
150 An act relating to municipal utilities; amending s. 180.19,
151 F.S.; requiring certain public meetings as a condition precedent
152 to the effectiveness of a new or extended agreement under which
153 a municipality will provide specified utility services in other
154 municipalities or unincorporated areas; specifying the matters
155 to be addressed in such public meetings; requiring such
156 agreements to be written; requiring annual customer meetings;
157 defining “governing body” for specified purposes; limiting the
158 portion of certain utility revenues that a municipality may use
159 to fund or finance general government functions; requiring
160 municipalities that provide specified utility services to report
161 certain information to the Public Service Commission on an
162 annual basis; requiring the commission to compile and provide a
163 report of this information; providing construction; amending s.
164 180.191, F.S.; modifying provisions relating to permissible
165 rates, fees, and charges imposed by municipal water and sewer
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Amendment No. 1
166 utilities on customers located outside the municipal boundaries;
167 providing an effective date.
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