Senate Bill sb1664

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    Florida Senate - 2002                                  SB 1664

    By Senator Sebesta





    20-1242-02

  1                      A bill to be entitled

  2         An act relating to alternative fuels; amending

  3         s. 206.41, F.S.; providing tax refunds with

  4         respect to alternative fuel vehicles; amending

  5         s. 206.877, F.S.; abolishing the use of the

  6         alternative fuel decal and providing for a tax

  7         exemption for a specified period; providing for

  8         review of alternative fuel incentives;

  9         repealing s. 206.879, F.S., relating to the

10         distribution of proceeds from alternative fuel

11         decals; amending s. 212.08, F.S.; providing a

12         sales tax exemption for alternative fuel

13         vehicles for a specified period; amending s.

14         320.01, F.S.; defining the term "alternative

15         fuel vehicles"; amending s. 403.42, F.S.;

16         revising the responsibilities of the Clean Fuel

17         Florida Advisory Board and providing for its

18         termination; providing an effective date.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Paragraph (c) of subsection (4) of section

23  206.41, Florida Statutes, is amended to read:

24         206.41  State taxes imposed on motor fuel.--

25         (4)

26         (c)1.  Any person who uses any motor fuel for

27  agricultural, aquacultural, or commercial fishing purposes on

28  which fuel the tax imposed by paragraph (1)(e), paragraph

29  (1)(f), or paragraph (1)(g) has been paid is entitled to a

30  refund of such tax.

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  1         2.  Until October 1, 2004, any person who uses any

  2  motor fuel for a hybrid electric vehicle, as defined in s.

  3  320.01(42), on which the fuel tax imposed by paragraph (1)(e),

  4  paragraph (1)(f), or paragraph (1)(g) has been paid is

  5  entitled to a refund of such tax.

  6         3.2.  For the purposes of this paragraph, "agricultural

  7  and aquacultural purposes" means motor fuel used in any

  8  tractor, vehicle, or other farm equipment which is used

  9  exclusively on a farm or for processing farm products on the

10  farm, and no part of which fuel is used in any vehicle or

11  equipment driven or operated upon the public highways of this

12  state.  This restriction does not apply to the movement of a

13  farm vehicle or farm equipment between farms. The transporting

14  of bees by water and the operating of equipment used in the

15  apiary of a beekeeper shall be also deemed an agricultural

16  purpose.

17         4.3.  For the purposes of this paragraph, "commercial

18  fishing and aquacultural purposes" means motor fuel used in

19  the operation of boats, vessels, or equipment used exclusively

20  for the taking of fish, crayfish, oysters, shrimp, or sponges

21  from salt or fresh waters under the jurisdiction of the state

22  for resale to the public, and no part of which fuel is used in

23  any vehicle or equipment driven or operated upon the highways

24  of this state; however, the term may in no way be construed to

25  include fuel used for sport or pleasure fishing.

26         Section 2.  Section 206.877, Florida Statutes, is

27  amended to read:

28         206.877  Motor vehicles fueled by alternative fuels;

29  tax exemption liquefied petroleum gas or compressed natural

30  gas; payment of annual decal fees in lieu of tax.--

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  1         (1)  Until October 1, 2004, the tax imposed by s.

  2  206.87 and s. 206.41(1)(e),(f), and (g) do does not apply to

  3  motor vehicles licensed in this state pursuant to chapter 320

  4  which are classified as powered by alternative fuel vehicles

  5  as defined in s. 320.01(45) fuels and for which valid decals

  6  have been acquired as provided in this section. The Clean Fuel

  7  Florida Advisory Board will review the impact of alternative

  8  fuel incentives as provided in s. 403.42.

  9         (a)  The owners or operators of such vehicles shall, in

10  lieu of the excise tax imposed by this part, pay an annual

11  decal fee on each such motor vehicle in accordance with the

12  following rate schedule:

13

14                                   State Fee:

15                                   Fee for each

16                                   tenth of a

17                                   cent of tax  Fee for each cent

18                                   imposed by   of tax imposed

19                                   s. 206.87(1) by s. 206.87(1)

20  Class   Vehicle License Category (a) and (d)  (b) and (c)

21

22    A     Vehicles licensed           $1.10           $11

23          pursuant to s.

24          320.08(1), (2),

25          (3)(a)-(c), (e), (6)(a),

26          and (9)(c)1.

27    B     Vehicles licensed           $1.50           $15

28          pursuant to s.

29          320.08(5)(b)-(f),

30          (6)(b), (9)(c)2., and

31          (14).

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  1    C     Vehicles licensed           $2.10           $21

  2          pursuant to s.

  3          320.08(4).

  4

  5         (b)  A person fueling vehicles from his or her own

  6  facilities shall, in addition to the state alternative fuel

  7  fee imposed by this section, pay a local alternative fuel fee

  8  in lieu of each cent of excise tax levied by a county pursuant

  9  to s. 206.87(1)(b) and (c). This local fee shall be $11 for

10  each cent of local excise tax on class "A" vehicles, $15 for

11  each cent of local excise tax on class "B" vehicles, and $21

12  for each cent of local excise tax on class "C" vehicles.

13  Those persons who do not operate their own fueling facilities

14  shall indicate and pay the appropriate local fee for the

15  particular county where the vehicles are predominantly used.

16         (2)(a)  The department shall issue annual decals, which

17  shall be valid for the current 12-month period for which they

18  are issued and which shall be attached to the upper right

19  corners of the front windshields on the motor vehicles for

20  which they are issued. However, if a motor vehicle owner

21  applies for the decal after March 31, June 30, or September 30

22  of any year, he or she shall pay three-fourths, one-half, or

23  one-fourth of the fee, respectively.

24         (b)  A valid identifying decal which has been issued

25  for a motor vehicle is transferable for the remainder of the

26  issuance period upon change of ownership of the motor vehicle

27  if the owner notifies the department of such transfer within

28  10 days.

29         (3)  It is unlawful for any person to operate a motor

30  vehicle that is required to have a decal upon the highways of

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    Florida Senate - 2002                                  SB 1664
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  1  this state without such decal unless the motor vehicle is

  2  titled outside the state.

  3         (4)  No person shall put, or cause to be put, liquefied

  4  petroleum gas or compressed natural gas into the fuel supply

  5  tank of a motor vehicle which is required to have an

  6  alternative fuel decal unless the vehicle has such a decal

  7  attached to it as required by this section.  Each sale of fuel

  8  placed into a motor vehicle displaying such a decal shall be

  9  recorded upon an invoice which includes the decal number, the

10  motor vehicle license number, and the number of gallons placed

11  into the motor vehicle.

12         (5)  Any person who violates the provisions of this

13  section is guilty of a misdemeanor of the first degree,

14  punishable as provided in s. 775.082 or s. 775.083.  In

15  addition, any person who is liable for fueling a vehicle which

16  does not have the proper decal affixed is subject to the

17  provisions of this section and the provisions of s. 206.94.

18         (6)  Persons, except those who purchase liquefied

19  petroleum gas or compressed natural gas for resale, who only

20  own or operate motor vehicles displaying an alternative fuel

21  decal are not subject to the excise tax licensing and

22  reporting requirements under this part.

23         (7)  The department is empowered to promulgate rules,

24  establish procedures for the audit of persons affected by this

25  section, impose assessments for delinquent fees, require the

26  keeping of any records or books, and prescribe and publish

27  forms as may be necessary to administer the fee imposed by

28  this section.

29         (8)  The excise tax provided by s. 206.87 applies to

30  purchases of alternative fuels by operators of vehicles

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  1  licensed in other states and other vehicles which do not have

  2  the proper decals pursuant to this section.

  3         (9)  A state or local governmental agency is not

  4  required to obtain a decal and pay the annual decal fee

  5  imposed by this section for a motor vehicle which it operates

  6  which is powered by alternative fuel. The excise tax imposed

  7  by s. 206.87 does not apply to purchases of alternative fuel

  8  for such vehicles.

  9         Section 3.  Section 206.879, Florida Statutes, is

10  repealed.

11         Section 4.  Paragraph (fff) is added to subsection (7)

12  of section 212.08, Florida Statutes, to read:

13         212.08  Sales, rental, use, consumption, distribution,

14  and storage tax; specified exemptions.--The sale at retail,

15  the rental, the use, the consumption, the distribution, and

16  the storage to be used or consumed in this state of the

17  following are hereby specifically exempt from the tax imposed

18  by this chapter.

19         (7)  MISCELLANEOUS EXEMPTIONS.--

20         (fff)  Alternative fuel vehicles.--Also exempt from the

21  tax imposed by this chapter are alternative fuel vehicles as

22  defined in s. 320.01(45). This exemption remains in effect

23  until October 1, 2004.

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25  Exemptions provided to any entity by this subsection shall not

26  inure to any transaction otherwise taxable under this chapter

27  when payment is made by a representative or employee of such

28  entity by any means, including, but not limited to, cash,

29  check, or credit card even when that representative or

30  employee is subsequently reimbursed by such entity.

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    Florida Senate - 2002                                  SB 1664
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  1         Section 5.  Subsection (45) is added to section 320.01,

  2  Florida Statutes, to read:

  3         320.01  Definitions, general.--As used in the Florida

  4  Statutes, except as otherwise provided, the term:

  5         (45)  "Alternative fuel vehicle" means:

  6         (a)  A dedicated alternative fuel vehicle designed to

  7  use only one specific alternative fuel, including electricity,

  8  solar energy, liquefied petroleum gas, natural gas, or

  9  hydrogen.

10         (b)  A fuel cell vehicle for which the primary source

11  of motive power is generated from an on-board fuel cell.

12         (c)  A low-speed vehicle as defined in s. 320.01(42).

13         (d)  Hybrid electric vehicles that draw propulsion

14  energy from onboard sources of stored energy which are both an

15  internal combustion or heat engine using combustible fuel and

16  a rechargeable energy storage system which, for 2002 and later

17  model vehicles, has received a certificate of conformity under

18  the Clean Air Act and meets or exceeds the equivalent

19  qualifying California low-emission vehicle standard under

20  section 243(e)(2) of the Clean Air Act for that make and model

21  year.

22         Section 6.  Subsection (3) of section 403.42, Florida

23  Statutes, is amended to read:

24         403.42  Florida Clean Fuel Act.--

25         (3)  CLEAN FUEL FLORIDA ADVISORY BOARD ESTABLISHED;

26  MEMBERSHIP; DUTIES AND RESPONSIBILITIES.--

27         (a)  The Clean Fuel Florida Advisory Board is

28  established within the Department of Community Affairs.

29         (b)1.  The advisory board shall consist of the

30  Secretary of Community Affairs, or a designee from that

31  department, the Secretary of Environmental Protection, or a

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  1  designee from that department, the Commissioner of Education,

  2  or a designee from that department, the Secretary of

  3  Transportation, or a designee from that department, the

  4  Commissioner of Agriculture, or a designee from the Department

  5  of Agriculture and Consumer Services, the Secretary of

  6  Management Services, or a designee from that department, and a

  7  representative of each of the following, who shall be

  8  appointed by the Secretary of Community Affairs within 30 days

  9  after the effective date of this act:

10         a.  The Florida biodiesel industry.

11         b.  The Florida electric utility industry.

12         c.  The Florida natural gas industry.

13         d.  The Florida propane gas industry.

14         e.  An automobile manufacturers' association.

15         f.  A Florida Clean Cities Coalition designated by the

16  United States Department of Energy.

17         g.  Enterprise Florida, Inc.

18         h.  EV Ready Broward.

19         i.  The Florida petroleum industry.

20         j.  The Florida League of Cities.

21         k.  The Florida Association of Counties.

22         l.  Floridians for Better Transportation.

23         m.  A motor vehicle manufacturer.

24         n.  Florida Local Environment Resource Agencies.

25         o.  Project for an Energy Efficient Florida.

26         p.  Florida Transportation Builders Association.

27         2.  The purpose of the advisory board is to serve as a

28  resource for the department and to provide the Governor, the

29  Legislature, and the Secretary of Community Affairs with

30  private sector and other public agency perspectives on

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    Florida Senate - 2002                                  SB 1664
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  1  achieving the goal of increasing the use of alternative fuel

  2  vehicles in this state.

  3         3.  Members shall be appointed to serve terms of 1 year

  4  each, with reappointment at the discretion of the Secretary of

  5  Community Affairs. Vacancies shall be filled for the remainder

  6  of the unexpired term in the same manner as the original

  7  appointment.

  8         4.  The board shall annually select a chairperson.

  9         5.a.  The board shall meet at least once each quarter

10  or more often at the call of the chairperson or the Secretary

11  of Community Affairs.

12         b.  Meetings are exempt from the notice requirements of

13  chapter 120, and sufficient notice shall be given to afford

14  interested persons reasonable notice under the circumstances.

15         6.  Members of the board are entitled to travel

16  expenses while engaged in the performance of board duties.

17         7.  The board shall terminate on July 1, 2005 5 years

18  after the effective date of this act.

19         (c)  The board shall review the performance of the

20  state with reference to alternative fuel vehicle

21  implementation in complying with federal laws and maximizing

22  available federal funding and may:

23         1.  Advise the Governor, Legislature, and the Secretary

24  of Community Affairs and make recommendations regarding

25  implementation and use of alternative fuel vehicles in this

26  state.

27         2.  Identify potential improvements in this act and the

28  state's alternative fuel policies.

29         3.  Request from all state agencies any information the

30  board determines relevant to board duties.

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  1         4.  Regularly report to the Secretary of Community

  2  Affairs, the Governor, the President of the Senate, and the

  3  Speaker of the House of Representatives regarding the board's

  4  findings and recommendations.

  5         (d)1.  The advisory board shall, by January 1, 2003

  6  within 120 days after its first meeting, make recommendations

  7  to the Department of Community Affairs, the Governor, and the

  8  Legislature regarding:

  9         1.  The impact of emerging transportation technologies,

10  including, but not limited to, hybrid vehicles, fuel cells,

11  and hydrogen fuels, on state transportation revenues derived

12  from motor fuel taxes as a result of improved fuel

13  efficiencies and increased use of alternative fuels.

14         2.  The impact of emerging transportation technologies

15  on transportation infrastructure such as, but not limited to,

16  fuel distribution, refueling infrastructure, and technology

17  and training needs, especially with regard to the pending

18  impact of fuel cell technology on transportation and energy.

19         3.  The development of emerging transportation

20  technologies and their potential for impact on this state's

21  investment in transportation.

22         (e)  The advisory committee must annually evaluate the

23  costs and projected costs of the alternative fuel vehicle

24  incentive program, and must, by January 1, 2004, make

25  recommendations concerning the need to sunset or extend

26  incentives for alternative fuel vehicles.  for establishing

27  pilot programs in this state that provide experience and

28  support the best use expansion of the alternative fuel vehicle

29  industry in this state. No funds shall be released for a

30  project unless there is at least a 50-percent private or local

31  match.

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  1         2.  In addition to the pilot programs, the advisory

  2  board shall assess federal, state, and local initiatives to

  3  identify incentives that encourage successful alternative fuel

  4  vehicle programs; obstacles to alternative fuel vehicle use

  5  including legislative, regulatory, and economic obstacles; and

  6  programs that educate and inform the public about alternative

  7  fuel vehicles.

  8         3.  The advisory board is charged with determining a

  9  reasonable, fair, and equitable way to address current motor

10  fuel taxes as they apply to alternative fuels and at what

11  threshold of market penetration.

12         4.  Based on its findings, the advisory board shall

13  develop recommendations to the Legislature on future

14  alternative fuel vehicle programs and legislative changes that

15  provide the best use of state and other resources to enhance

16  the alternative fuel vehicle market in this state and maximize

17  the return on that investment in terms of job creation,

18  economic development, and emissions reduction.

19         (e)  The advisory board, working with the Department of

20  Community Affairs, shall develop a budget for the department's

21  approval, and all expenditures shall be approved by the

22  department. At the conclusion of the first year, the

23  department shall conduct an audit of the board and board

24  programs.

25         Section 7.  This act shall take effect July 1, 2002.

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  1            *****************************************

  2                          SENATE SUMMARY

  3    Provides for a refund of fuel taxes for alternative fuel
      vehicles for a specified period. Abolishes the use of the
  4    alternative fuel decal and provides a tax exemption until
      October 1, 2004. Provides for a review of alternative
  5    fuel incentives. Repeals s. 206.979, F.S., relating to
      the distribution of the proceeds from alternative fuel
  6    decals. Provides a sales tax exemption for alternative
      fuel vehicles until October 1, 2004. Defines the term
  7    "alternative fuel vehicles." Revises the responsibilities
      of the Clean Fuel Florida Advisory Board and provides for
  8    its termination on July 1, 2005.

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