Florida Senate - 2015 PROPOSED COMMITTEE SUBSTITUTE Bill No. CS for SB 1538 Ì135364-Î135364 576-04116-15 Proposed Committee Substitute by the Committee on Appropriations (Appropriations Subcommittee on General Government) 1 A bill to be entitled 2 An act relating to a natural gas rebate program; 3 amending s. 377.810, F.S.; authorizing the Department 4 of Agriculture and Consumer Services to receive 5 additional applications from certain applicants; 6 authorizing any remaining unencumbered funds to be 7 used by the department to award additional rebates; 8 creating s. 377.811, F.S.; creating the heavy 9 transportation industry natural gas rebate program 10 within the department; defining terms; prescribing 11 powers and duties of the department with respect to 12 the program; prescribing limits on rebate awards; 13 providing policies and procedures for application 14 approval; authorizing the department to adopt rules by 15 a specified date; requiring the department to publish 16 on its website the availability of rebate funds; 17 requiring the department to submit an annual 18 assessment to the Governor, the Legislature, and the 19 Office of Program Policy Analysis and Government 20 Accountability by a specified date; authorizing an 21 appropriation; providing an effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25 Section 1. Subsection (3) of section 377.810, Florida 26 Statutes, is amended to read: 27 377.810 Natural gas fuel fleet vehicle rebate program.— 28 (3) NATURAL GAS FUEL FLEET VEHICLE REBATE.—The department 29 shall award rebates for eligible costs as defined in this 30 section. Forty percent of the annual allocation shall be 31 reserved for governmental applicants, with the remaining funds 32 allocated for commercial applicants. A rebate may not exceed 50 33 percent of the eligible costs of a natural gas fuel fleet 34 vehicle with a dedicated or bi-fuel natural gas fuel operating 35 system placed into service on or after July 1, 2013. An 36 applicant is eligible to receive a maximum rebate of $25,000 per 37 vehicle up to a total of $250,000 per fiscal year. Between June 38 1 and June 30 of each fiscal year the department may receive 39 additional applications from applicants that have met the 40 program maximum of $250,000 per fiscal year. Those applicants 41 may apply for additional funds for vehicles that have not 42 received a rebate, a maximum rebate of $25,000 per vehicle up to 43 a total of $250,000. Any unencumbered funds remaining after June 44 30 of each fiscal year may be used by the department to award 45 the additional rebates. Governmental applicants shall have 46 preference and all remaining unencumbered funds may be used by 47 commercial applicants. Rebates shall be allocated to eligible 48 applicants on a first-come, first-served basis, determined by 49 the date the application is received, until all appropriated 50 funds for the fiscal year are expended or the program ends, 51 whichever comes first. All natural gas fuel fleet vehicles 52 eligible for the rebate must comply with applicable United 53 States Environmental Protection Agency emission standards. 54 Section 2. Section 377.811, Florida Statutes, is created to 55 read: 56 377.811 Heavy transportation industry natural gas rebate 57 program.— 58 (1) CREATION AND PURPOSE OF PROGRAM.—There is created 59 within the Department of Agriculture and Consumer Services a 60 heavy transportation industry natural gas rebate program. The 61 purpose of this program is to help reduce transportation costs 62 in this state, encourage the use of a domestic fuel source, and 63 encourage heavy transportation industry investments that 64 contribute to the economic growth of the state. 65 (2) DEFINITIONS.—As used in this section, the term: 66 (a) “Conversion costs” means the costs associated with 67 retrofitting a diesel-, gasoline-, or heavy fuel oil- powered 68 locomotive, waterborne ship, or other high horsepower engine to 69 a natural gas powered eligible vehicle. 70 (b) “Department” means the Department of Agriculture and 71 Consumer Services. 72 (c) “Eligible costs” means the conversion costs or the 73 incremental costs incurred by an applicant in connection with an 74 investment in the conversion, purchase, or lease lasting at 75 least 10 years of a natural gas-powered eligible vehicle. The 76 term does not include costs for project development, fueling 77 stations, or other fueling infrastructure. 78 (d) “Eligible vehicle” means one or more locomotives, 79 waterborne ships, or other high horsepower engines used for 80 transportation purposes registered or licensed in this state and 81 used for commercial business or governmental purposes. Eligible 82 vehicles must be newly constructed or repowered and placed into 83 service on or after July 1, 2015. Waterborne ships must be built 84 and documented in the United States with a coastwise endorsement 85 under the Jones Act, 46 U.S.C. s. 55102, and used to provide 86 regular transportation of merchandise between one or more ports 87 in this state and other domestic ports. If the eligible vehicle 88 is registered with a federal regulatory body, the owner must 89 certify in writing that the eligible vehicle will be used the 90 majority of the time in this state or a waterborne ship that 91 uses a port in this state in its rotation, subject to department 92 review. 93 (e) “High horsepower engine” means any engine that provides 94 more than 1,000 horsepower and is used for nonhighway 95 transportation purposes. 96 (f) “Incremental costs” means the excess costs associated 97 with the purchase or lease of a natural gas-powered eligible 98 vehicle as compared to an equivalent diesel-, gasoline-, or 99 heavy fuel oil- powered eligible vehicle. 100 (g) “Natural gas fuel” means any liquefied petroleum gas 101 product, compressed natural gas product, or combination thereof 102 used in an eligible vehicle. This term includes, but is not 103 limited to, all forms of fuel commonly or commercially known or 104 sold as natural gasoline, butane gas, propane gas, or any other 105 form of liquefied petroleum gas, compressed natural gas, or 106 liquefied natural gas. The term does not include natural gas or 107 liquefied petroleum placed in a separate tank for cooking, 108 heating, water heating, or electric generation. 109 (3) HEAVY TRANSPORTATION INDUSTRY NATURAL GAS REBATE.—The 110 department shall award rebates for eligible costs. A rebate may 111 not exceed 50 percent of the eligible costs of a natural gas 112 eligible vehicle with a dedicated or bi-fuel natural gas fuel 113 operating system placed into service on or after July 1, 2015. 114 An applicant is eligible to receive a maximum rebate of $500,000 115 per eligible vehicle up to a total of $1 million per fiscal 116 year. All eligible vehicles must comply with applicable United 117 States Environmental Protection Agency emission standards. 118 (4) APPLICATION PROCESS.— 119 (a) An applicant seeking to obtain a rebate shall submit an 120 application to the department by a specified date each year as 121 established by department rule. The application must require a 122 complete description of all eligible costs, proof of purchase or 123 lease of the eligible vehicle for which the applicant is seeking 124 a rebate, a copy of the vehicle registration certificate or 125 equivalent documentation, a description of the total rebate 126 sought by the applicant, and any other information deemed 127 necessary by the department. The application form adopted by 128 department rule must include an affidavit from the applicant 129 certifying that all information contained in the application is 130 true and correct. 131 (b) The department shall determine the rebate eligibility 132 of each applicant in accordance with the requirements of this 133 section and department rule. The total amount of rebates 134 allocated to certified applicants in each fiscal year may not 135 exceed the amount appropriated for the program in a fiscal year. 136 Rebates shall be allocated to eligible applicants on a first 137 come, first-served basis, determined by the date and time the 138 application is received, until all appropriated funds for the 139 fiscal year are expended or the program ends, whichever comes 140 first. Incomplete applications submitted to the department may 141 not be accepted and do not secure a place in the first-come, 142 first-served application process. 143 (5) RULES.—The department may adopt rules to implement and 144 administer this section by December 31, 2015, including rules 145 relating to the forms required to claim a rebate under this 146 section, the required documentation and basis for establishing 147 eligibility for a rebate, procedures and guidelines for claiming 148 a rebate, and the collection of economic impact data from 149 applicants. 150 (6) PUBLICATION.—The department shall determine and publish 151 on its website on an ongoing basis the amount of available 152 funding for rebates remaining in each fiscal year. 153 (7) ANNUAL ASSESSMENT.—By December 1, 2016, and each year 154 thereafter that the program is funded, the department shall 155 provide an annual assessment of the use of the rebate program 156 during the previous fiscal year to the Governor, the President 157 of the Senate, the Speaker of the House of Representatives, and 158 the Office of Program Policy Analysis and Government 159 Accountability. The assessment shall include, at a minimum, the 160 following information: 161 (a) The name of each applicant awarded a rebate under this 162 section; 163 (b) The amount of the rebates awarded to each applicant; 164 (c) The type and description of each eligible vehicle for 165 which each applicant applied for a rebate; and 166 (d) The aggregate amount of funding awarded for all 167 applicants claiming rebates under this section. 168 (8) APPROPRIATION.—Beginning in the 2015-2016 fiscal year 169 and each year thereafter through the 2019-2020 fiscal year, the 170 General Appropriations Act may provide a specific appropriation 171 in each fiscal year from the General Revenue Fund to the 172 Department of Agriculture and Consumer Services for the purpose 173 of funding the heavy transportation industry natural gas rebate 174 program. 175 Section 3. This act shall take effect July 1, 2015.