Senate Bill sb2666c1

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    Florida Senate - 2007                           CS for SB 2666

    By the Committee on Environmental Preservation and
    Conservation; and Senator Constantine




    592-2412-07

  1                      A bill to be entitled

  2         An act relating to energy efficiency and

  3         alternative fuel; amending s. 163.04, F.S.;

  4         revising provisions authorizing the use of

  5         solar collectors and other energy devices;

  6         providing for use of solar collectors on the

  7         roofs of condominium common elements; amending

  8         s. 196.175, F.S.; revising provisions for the

  9         renewable energy source exemption; excluding

10         the assessed value of certain real property for

11         determination of such exemption; amending s.

12         212.08, F.S.; revising the definition of

13         "ethanol"; increasing the cap on the sales tax

14         exemption for materials used in the

15         distribution of biodiesel and ethanol fuels;

16         specifying eligible items as limited to one

17         refund; requiring a purchaser who receives a

18         refund to notify a subsequent purchaser of such

19         refund; providing that the exemption for

20         renewable energy technologies is available only

21         to the end user of the equipment, machinery,

22         and other materials; creating s. 212.086, F.S.;

23         providing financial incentives for the purchase

24         or lease of an alternative motor vehicle;

25         providing that any person who purchases or

26         leases an alternative motor vehicle from a

27         sales tax dealer is eligible for a refund of

28         the sales tax paid; requiring that the

29         alternative motor vehicle be certified under

30         the Internal Revenue Code of 1986, as amended,

31         as a new qualified hybrid motor vehicle, new

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 1         qualified alternative fuel motor vehicle, new

 2         qualified fuel cell motor vehicle, or new

 3         advanced lean-burn technology motor vehicle;

 4         requiring that an application for refund be

 5         filed with the Department of Revenue; providing

 6         that the total dollar amount of refunds is

 7         limited to the total amount of appropriations

 8         in any fiscal year; authorizing a request for a

 9         refund to be held for payment in the following

10         fiscal year under certain circumstances;

11         requiring the department to adopt rules;

12         providing for future repeal of the program;

13         amending s. 220.192, F.S.; providing a

14         definition; providing for the transferability

15         of a tax credit; providing requirements and

16         procedures therefor; requiring the Department

17         of Revenue to promulgate a form and issue

18         certificates; amending s. 220.193, F.S.;

19         providing a definition; providing that a

20         taxpayer's use of certain credits does not

21         prohibit the use of other authorized credits;

22         amending s. 255.251, F.S.; revising a short

23         title; amending s. 255.252, F.S.; revising

24         criteria for energy conservation and

25         sustainability for state-owned buildings;

26         requiring that buildings constructed and

27         financed by the state meet a rating system as

28         approved by the department; requiring state

29         agencies to identify state-owned buildings that

30         are suitable for the guaranteed energy program;

31         amending s. 255.253, F.S.; defining the terms

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 1         "sustainable building" and "sustainable

 2         building rating"; amending s. 255.254, F.S.;

 3         revising provisions relating to evaluations of

 4         life cycle costs before construction of state

 5         facilities; deleting provisions relating to

 6         evaluations of life cycle costs with respect to

 7         facilities that are leased; amending s.

 8         255.255, F.S.; revising energy conservation

 9         performance guidelines to be used in life-cycle

10         cost analyses; amending s. 287.064, F.S.;

11         revising requirements relating to guaranteed

12         energy performance savings contracts; amending

13         s. 287.16, F.S.; requiring the Department of

14         Management Services to conduct an inventory of

15         state vehicles that are flexible fuel motor

16         vehicles or hybrid motor vehicles; requiring a

17         specified percentage of such vehicles in the

18         state's inventory; amending s. 366.93, F.S.;

19         revising definitions related to certain power

20         plants to include integrated gasification

21         combined cycle power plants; requiring the

22         Public Service Commission to implement rules

23         related to integrated gasification combined

24         cycle power plant cost recovery; requiring a

25         report; amending s. 403.519, F.S.; providing

26         requirements and procedures for determining

27         need for certain advanced coal technology power

28         plants; providing an exemption from purchased

29         power supply bid rules under certain

30         circumstances; amending s. 377.802, F.S.;

31         designating October of each year as "Energy

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 1         Efficiency and Conservation Month"; repealing

 2         s. 377.803(2), F.S., relating to the definition

 3         of "approved metering equipment"; repealing s.

 4         377.804(6), F.S.; deleting provisions relating

 5         to bioenergy projects under the Renewable

 6         Energy Technologies Grants Program; amending s.

 7         377.806, F.S.; revising rebate eligibility and

 8         application requirements for solar thermal

 9         systems; providing that payment may be made

10         only to the final purchaser of an eligible

11         system; limiting the number of rebates that may

12         be made; creating s. 212.0802, F.S.; providing

13         sales tax exemptions for certain

14         energy-efficient products; amending s. 377.901,

15         F.S.; revising membership of the Florida Energy

16         Commission; providing duties of the commission

17         chair; providing eligibility for travel and per

18         diem for ex officio members; prescribing

19         additional duties of the commission; providing

20         for research, recommendations, and a report;

21         creating s. 403.0874, F.S.; prescribing duties

22         of the Department of Environmental Protection

23         with respect to greenhouse gas inventories;

24         amending s. 489.145, F.S.; revising provisions

25         relating to guaranteed energy performance

26         savings contracting to include energy

27         consumption and energy-related operational

28         savings; revising provisions for the financing

29         of guaranteed energy performance savings

30         contracts; revising criteria for proposed

31         contracts; requiring that consolidated

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    Florida Senate - 2007                           CS for SB 2666
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 1         financing of deferred payment commodity

 2         contracts be secured by certain funds;

 3         requiring the Chief Financial Officer to review

 4         proposed guaranteed energy performance savings

 5         contracts; creating s. 570.956, F.S.;

 6         establishing the Farm-to-Fuel Advisory Council

 7         within the Department of Agriculture and

 8         Consumer Services; providing membership

 9         requirements; providing for council duties;

10         creating s. 570.957, F.S.; establishing the

11         Farm-to-Fuel Grants Program within the

12         Department of Agriculture and Consumer

13         Services; providing definitions; specifying the

14         use of grants for certain bioenergy projects;

15         providing eligibility requirements; authorizing

16         the department to adopt rules; providing

17         criteria for grant award consideration;

18         requiring the department to consult with the

19         Department of Environmental Protection, the

20         Office of Tourism, Trade, and Economic

21         Development, and certain experts when

22         evaluating applications; creating s. 570.958,

23         F.S.; establishing the Biofuel Retail Sales

24         Incentive Program; establishing goals for

25         replacing petroleum consumption; providing

26         definitions; providing incentive payments to

27         qualified retail dealers for increases in the

28         amount of biofuels offered for sale; providing

29         requirements and procedures therefor; creating

30         s. 570.959, F.S.; establishing the Florida

31         Biofuel Production Incentive Program; providing

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    Florida Senate - 2007                           CS for SB 2666
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 1         definitions; providing incentive payments to

 2         producers of certain biofuels; providing

 3         requirements and procedures therefor;

 4         authorizing the Department of Agriculture and

 5         Consumer Services to adopt rules; directing the

 6         Florida Building Commission to convene a

 7         workgroup to develop a model residential energy

 8         efficiency ordinance; requiring the commission

 9         to consult with specified entities to review

10         the cost-effectiveness of energy efficiency

11         measures in the construction of residential,

12         commercial, and government buildings; requiring

13         the commission to consult with specified

14         entities to develop and implement a public

15         awareness campaign; requiring the commission to

16         provide reports to the Legislature; requiring

17         all county, municipal, and public community

18         college buildings to meet certain energy

19         efficiency standards for construction;

20         providing applicability; establishing standards

21         for the use of biodiesel fuels by school

22         district transportation services; providing

23         legislative intent relating to the leverage of

24         state funds for certain research and

25         production; creating the Florida Energy,

26         Aerospace, and Technology Fund to encourage

27         business and investment opportunities and

28         target performance goals for investments in the

29         areas of alternative energy development and

30         production infrastructure; providing for the

31         construction and operation of a multifaceted

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    Florida Senate - 2007                           CS for SB 2666
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 1         Research and Demonstration Cellulosic Ethanol

 2         Plant; requiring the Florida Energy Commission

 3         to conduct a study to determine the appropriate

 4         goals for renewable energy resources; requiring

 5         a report; providing appropriations; providing

 6         effective dates.

 7  

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

 9  

10         Section 1.  Subsection (2) of section 163.04, Florida

11  Statutes, is amended to read:

12         163.04  Energy devices based on renewable resources.--

13         (2)  No deed restrictions, covenants, declarations, or

14  similar binding agreements running with the land shall

15  prohibit or have the effect of prohibiting solar collectors,

16  clotheslines, or other energy devices based on renewable

17  resources from being installed on buildings erected on the

18  lots or parcels covered by the deed restrictions, covenants,

19  declarations, or binding agreements. A property owner may not

20  be denied permission to install solar collectors or other

21  energy devices based on renewable resources by any entity

22  granted the power or right in any deed restriction, covenant,

23  declaration, or similar binding agreement to approve, forbid,

24  control, or direct alteration of property with respect to

25  residential dwellings, including condominiums not exceeding

26  three stories in height. For purposes of this subsection, such

27  entity may determine the specific location where solar

28  collectors may be installed on the roof within an orientation

29  to the south or within 45° east or west of due south provided

30  that such determination does not impair the effective

31  operation of the solar collectors. In the case of a

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    Florida Senate - 2007                           CS for SB 2666
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 1  condominium, solar collectors may be installed on a roof that

 2  is considered to be a common element of the condominium

 3  association.

 4         Section 2.  Section 196.175, Florida Statutes, is

 5  amended to read:

 6         196.175  Renewable energy source exemption.--

 7         (1)  Improved real property upon which a renewable

 8  energy source device is installed and operated shall be

 9  entitled to an exemption in the amount not greater than the

10  lesser of:

11         (a)  The assessed value of such real property less any

12  other exemptions applicable under this chapter;

13         (b)  the original cost of the device, including the

14  installation cost thereof, but excluding the cost of replacing

15  previously existing property removed or improved in the course

16  of such installation.; or

17         (c)  Eight percent of the assessed value of such

18  property immediately following installation.

19         (2)  The exempt amount authorized under subsection (1)

20  shall apply in full if the device was installed and operative

21  throughout the 12-month period preceding January 1 of the year

22  of application for this exemption.  If the device was

23  operative for a portion of that period, the exempt amount

24  authorized under this section shall be reduced proportionally.

25         (3)  It shall be the responsibility of the applicant

26  for an exemption pursuant to this section to demonstrate

27  affirmatively to the satisfaction of the property appraiser

28  that he or she meets the requirements for exemption under this

29  section and that the original cost pursuant to paragraph

30  (1)(b) and the period for which the device was operative, as

31  indicated on the exemption application, are correct.

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 1         (4)  No exemption authorized pursuant to this section

 2  shall be granted for a period of more than 10 years.  No

 3  exemption shall be granted with respect to renewable energy

 4  source devices installed before July 1, 2007 January 1, 1980,

 5  or after December 31, 1990.

 6         Section 3.  Paragraph (ccc) of subsection (7) of

 7  section 212.08, Florida Statutes, is amended to read:

 8         212.08  Sales, rental, use, consumption, distribution,

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

10  the rental, the use, the consumption, the distribution, and

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

12  following are hereby specifically exempt from the tax imposed

13  by this chapter.

14         (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to

15  any entity by this chapter do not inure to any transaction

16  that is otherwise taxable under this chapter when payment is

17  made by a representative or employee of the entity by any

18  means, including, but not limited to, cash, check, or credit

19  card, even when that representative or employee is

20  subsequently reimbursed by the entity. In addition, exemptions

21  provided to any entity by this subsection do not inure to any

22  transaction that is otherwise taxable under this chapter

23  unless the entity has obtained a sales tax exemption

24  certificate from the department or the entity obtains or

25  provides other documentation as required by the department.

26  Eligible purchases or leases made with such a certificate must

27  be in strict compliance with this subsection and departmental

28  rules, and any person who makes an exempt purchase with a

29  certificate that is not in strict compliance with this

30  subsection and the rules is liable for and shall pay the tax.

31  The department may adopt rules to administer this subsection.

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 1         (ccc)  Equipment, machinery, and other materials for

 2  renewable energy technologies.--

 3         1.  As used in this paragraph, the term:

 4         a.  "Biodiesel" means the mono-alkyl esters of

 5  long-chain fatty acids derived from plant or animal matter for

 6  use as a source of energy and meeting the specifications for

 7  biodiesel and biodiesel blends with petroleum products as

 8  adopted by the Department of Agriculture and Consumer

 9  Services. Biodiesel may refer to biodiesel blends designated

10  BXX, where XX represents the volume percentage of biodiesel

11  fuel in the blend.

12         b.  "Ethanol" means an nominally anhydrous denatured

13  alcohol produced by the conversion of carbohydrates

14  fermentation of plant sugars meeting the specifications for

15  fuel ethanol and fuel ethanol blends with petroleum products

16  as adopted by the Department of Agriculture and Consumer

17  Services. Ethanol may refer to fuel ethanol blends designated

18  EXX, where XX represents the volume percentage of fuel ethanol

19  in the blend.

20         c.  "Hydrogen fuel cells" means equipment using

21  hydrogen or a hydrogen-rich fuel in an electrochemical process

22  to generate energy, electricity, or the transfer of heat.

23         2.  The sale or use of the following in the state is

24  exempt from the tax imposed by this chapter:

25         a.  Hydrogen-powered vehicles, materials incorporated

26  into hydrogen-powered vehicles, and hydrogen-fueling stations,

27  up to a limit of $2 million in tax each state fiscal year for

28  all taxpayers.

29         b.  Commercial stationary hydrogen fuel cells, up to a

30  limit of $1 million in tax each state fiscal year for all

31  taxpayers.

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 1         c.  Materials used in the distribution of biodiesel

 2  (B10-B100) and ethanol (E10-100), including fueling

 3  infrastructure, transportation, and storage, up to a limit of

 4  $2 $1 million in tax each state fiscal year for all taxpayers.

 5  Gasoline fueling station pump retrofits for ethanol (E10-E100)

 6  distribution qualify for the exemption provided in this

 7  sub-subparagraph.

 8         3.  The Department of Environmental Protection shall

 9  provide to the department a list of items eligible for the

10  exemption provided in this paragraph.

11         4.  The exemption provided in this paragraph shall be

12  available only to the end user of the equipment, machinery,

13  and other materials.

14         5.4.a.  The exemption provided in this paragraph shall

15  be available to a purchaser only through a refund of

16  previously paid taxes. Only one purchase of an eligible item

17  is subject to refund. A purchaser who has received a refund on

18  an eligible item must notify any subsequent purchaser of the

19  item that the item is no longer eligible for a refund of tax

20  paid. This notification must be provided to the purchaser on

21  the sales invoice or other proof of purchase.

22         b.  To be eligible to receive the exemption provided in

23  this paragraph, a purchaser shall file an application with the

24  Department of Environmental Protection. The application shall

25  be developed by the Department of Environmental Protection, in

26  consultation with the department, and shall require:

27         (I)  The name and address of the person claiming the

28  refund.

29         (II)  A specific description of the purchase for which

30  a refund is sought, including, when applicable, a serial

31  number or other permanent identification number.

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 1         (III)  The sales invoice or other proof of purchase

 2  showing the amount of sales tax paid, the date of purchase,

 3  and the name and address of the sales tax dealer from whom the

 4  property was purchased.

 5         (IV)  A sworn statement that the information provided

 6  is accurate and that the requirements of this paragraph have

 7  been met.

 8         c.  Within 30 days after receipt of an application, the

 9  Department of Environmental Protection shall review the

10  application and shall notify the applicant of any

11  deficiencies. Upon receipt of a completed application, the

12  Department of Environmental Protection shall evaluate the

13  application for exemption and issue a written certification

14  that the applicant is eligible for a refund or issue a written

15  denial of such certification within 60 days after receipt of

16  the application. The Department of Environmental Protection

17  shall provide the department with a copy of each certification

18  issued upon approval of an application.

19         d.  Each certified applicant shall be responsible for

20  forwarding a certified copy of the application and copies of

21  all required documentation to the department within 6 months

22  after certification by the Department of Environmental

23  Protection.

24         e.  The provisions of s. 212.095 do not apply to any

25  refund application made pursuant to this paragraph. A refund

26  approved pursuant to this paragraph shall be made within 30

27  days after formal approval by the department.

28         f.  The department may adopt all rules pursuant to ss.

29  120.536(1) and 120.54 to administer this paragraph, including

30  rules establishing forms and procedures for claiming this

31  exemption.

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 1         g.  The Department of Environmental Protection shall be

 2  responsible for ensuring that the total amounts of the

 3  exemptions authorized do not exceed the limits as specified in

 4  subparagraph 2.

 5         6.5.  The Department of Environmental Protection shall

 6  determine and publish on a regular basis the amount of sales

 7  tax funds remaining in each fiscal year.

 8         7.6.  This paragraph expires July 1, 2010.

 9         Section 4.  Section 212.086, Florida Statutes, is

10  created to read:

11         212.086  Energy Efficient Motor Vehicle Sales Tax

12  Refund Program.--

13         (1)  The energy efficient motor vehicle sales tax

14  refund is established to provide financial incentives for the

15  purchase of alternative motor vehicles as specified by this

16  section.

17         (2)  Any person who purchases an alternative motor

18  vehicle is eligible for a refund of the tax imposed under this

19  chapter. The tax that is eligible for refund shall be computed

20  on the lesser of $15,000 or the sales price as provided in s.

21  212.02.

22         (3)  In order to qualify for the sales tax refund under

23  this section, the alternative motor vehicle must be certified

24  as a new qualified hybrid motor vehicle, new qualified

25  alternative fuel motor vehicle, new qualified fuel cell motor

26  vehicle, or new advanced lean-burn technology motor vehicle by

27  the Internal Revenue Service for the income tax credit for

28  alternative motor vehicles under s. 30B of the Internal

29  Revenue Code of 1986, as amended.

30         (4)  Notwithstanding ss. 212.095 and 215.26, an

31  application for refund must be filed with the department

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    Florida Senate - 2007                           CS for SB 2666
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 1  within 90 days after purchase of the alternative motor vehicle

 2  and must contain the following:

 3         (a)  The name and address of the person claiming the

 4  refund.

 5         (b)  A specific description of the alternative motor

 6  vehicle for which a refund is sought, including the vehicle

 7  identification number.

 8         (c)  The sales invoice or other proof of purchase

 9  showing the amount of sales tax paid, the date of purchase,

10  and the name and address of the sales tax dealer from whom the

11  alternative motor vehicle was purchased.

12         (d)  A sworn statement that the information provided is

13  accurate and that the requirements of this section have been

14  met.

15         (5)  The total dollar amount of all refunds issued by

16  the department is limited to the total amount of

17  appropriations in any fiscal year for this program. The

18  department may approve refunds up to the amount appropriated

19  for this refund program based on the date of filing an

20  application for refund pursuant to subsection (4). If the

21  funds are insufficient during a given fiscal year, any

22  requests for refund received during that fiscal year may be

23  processed during the following fiscal year, subject to the

24  appropriation, and have priority over new applications for

25  refund filed in the following fiscal year. The provisions of

26  s. 213.255 do not apply to requests for refund which are held

27  for payment in the following fiscal year.

28         (6)  The department may adopt rules pursuant to ss.

29  120.536(1) and 120.54 to administer this section, including

30  rules establishing forms and procedures for claiming this

31  refund.

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 1         (7)  A person who receives a refund pursuant to s.

 2  212.08(7)(ccc) may not be allowed a refund provided in this

 3  section.

 4         (8)  This section expires July 1, 2010.

 5         Section 5.  Subsection (1) of section 220.192, Florida

 6  Statutes, is amended, and subsection (8) is added to that

 7  section, to read:

 8         220.192  Renewable energy technologies investment tax

 9  credit.--

10         (1)  DEFINITIONS.--For purposes of this section, the

11  term:

12         (a)  "Biodiesel" means biodiesel as defined in s.

13  212.08(7)(ccc).

14         (b)  "Corporation" means any general partnership,

15  limited partnership, limited liability company, unincorporated

16  business, or other business entity in which a taxpayer owns an

17  interest and which is taxed as a partnership or is disregarded

18  as a separate entity from the taxpayer for tax purposes. Tax

19  credits derived by such an entity treated as a corporation

20  pursuant to this provision which are not transferred by such

21  entity to another taxpayer pursuant to subsection (8) shall be

22  passed through to the taxpayers designated as partners,

23  members, or owners, respectively, in any manner agreed to by

24  such persons, whether or not such persons are allocated or

25  allowed any portion of the federal energy tax credit with

26  respect to the eligible costs.  The Department of Revenue

27  shall adopt rules to implement and administer the provisions

28  allowing a pass-through of tax credits, including rules

29  prescribing forms, reporting requirements, and the specific

30  procedures, guidelines, and requirements necessary for a tax

31  credit to be passed through to an owner, member, or partner.

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 1         (c)(b)  "Eligible costs" means:

 2         1.  Seventy-five percent of all capital costs,

 3  operation and maintenance costs, and research and development

 4  costs incurred between July 1, 2006, and June 30, 2010, up to

 5  a limit of $3 million per state fiscal year for all taxpayers,

 6  in connection with an investment in hydrogen-powered vehicles

 7  and hydrogen vehicle fueling stations in the state, including,

 8  but not limited to, the costs of constructing, installing, and

 9  equipping such technologies in the state.

10         2.  Seventy-five percent of all capital costs,

11  operation and maintenance costs, and research and development

12  costs incurred between July 1, 2006, and June 30, 2010, up to

13  a limit of $1.5 million per state fiscal year for all

14  taxpayers, and limited to a maximum of $12,000 per fuel cell,

15  in connection with an investment in commercial stationary

16  hydrogen fuel cells in the state, including, but not limited

17  to, the costs of constructing, installing, and equipping such

18  technologies in the state.

19         3.  Seventy-five percent of all capital costs,

20  operation and maintenance costs, and research and development

21  costs incurred between July 1, 2006, and June 30, 2010, up to

22  a limit of $6.5 million per state fiscal year for all

23  taxpayers, in connection with an investment in the production,

24  storage, and distribution of biodiesel (B10-B100) and ethanol

25  (E10-E100) in the state, including the costs of constructing,

26  installing, and equipping such technologies in the state.

27  Gasoline fueling station pump retrofits for ethanol (E10-E100)

28  distribution qualify as an eligible cost under this

29  subparagraph.

30         (d)(c)  "Ethanol" means ethanol as defined in s.

31  212.08(7)(ccc).

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 1         (e)(d)  "Hydrogen fuel cell" means hydrogen fuel cell

 2  as defined in s. 212.08(7)(ccc).

 3         (8)  TRANSFERABILITY OF CREDIT.--

 4         (a)  Any corporation and any subsequent transferee

 5  allowed the tax credit may transfer the tax credit, in whole

 6  or in part, to any taxpayer by written agreement without the

 7  requirement of transferring any ownership interest in the

 8  property generating the tax credit or any interest in the

 9  entity that owns the property. Transferees are entitled to

10  apply the credits against the tax with the same effect as if

11  the transferee had incurred the eligible costs.

12         (b)  To perfect the transfer, the transferor shall

13  provide a written transfer statement providing notice to the

14  Department of Revenue of the assignor's intent to transfer the

15  tax credits to the assignee; the date the transfer is

16  effective; the assignee's name, address, federal taxpayer

17  identification number, and tax period; and the amount of tax

18  credits to be transferred. The Department of Revenue may adopt

19  rules to implement and administer this section, including

20  rules prescribing forms, reporting requirements, and the

21  specific procedures, guidelines, and requirements necessary to

22  transfer a tax credit. The Department of Revenue shall issue,

23  upon receipt of a transfer statement conforming to the

24  requirements of this section, a certificate to the assignee

25  reflecting the tax credit amounts transferred, a copy of which

26  shall be attached to each tax return by an assignee in which

27  such tax credits are used.

28         Section 6.  Paragraph (f) is added to subsection (2),

29  and paragraph (j) is added to subsection (3), of section

30  220.193, Florida Statutes, to read:

31         220.193  Florida renewable energy production credit.--

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 1         (2)  As used in this section, the term:

 2         (f)  "Sale" or "sold" includes the use of the

 3  electricity by the producer of the electricity when such use

 4  decreases the amount of electricity that would otherwise be

 5  purchased by the producer thereof.

 6         (3)  An annual credit against the tax imposed by this

 7  section shall be allowed to a taxpayer, based on the

 8  taxpayer's production and sale of electricity from a new or

 9  expanded Florida renewable energy facility. For a new

10  facility, the credit shall be based on the taxpayer's sale of

11  the facility's entire electrical production. For an expanded

12  facility, the credit shall be based on the increases in the

13  facility's electrical production that are achieved after May

14  1, 2006.

15         (j)  A taxpayer's use of the credit granted pursuant to

16  this section does not reduce the amount of any credit

17  authorized by s. 220.186 which would otherwise be available to

18  that taxpayer.

19         Section 7.  Section 255.251, Florida Statutes, is

20  amended to read:

21         255.251  Energy Conservation and Sustainable in

22  Buildings Act; short title.--This act may shall be cited as

23  the "Florida Energy Conservation and Sustainable in Buildings

24  Act of 1974."

25         Section 8.  Section 255.252, Florida Statutes, is

26  amended to read:

27         255.252  Findings and intent.--

28         (1)  Operating and maintenance expenditures associated

29  with energy equipment and with energy consumed in

30  state-financed and leased buildings represent a significant

31  cost over the life of a building. Energy conserved by

                                  18

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 1  appropriate building design not only reduces the demand for

 2  energy but also reduces costs for building operation. For

 3  example, commercial buildings are estimated to use from 20 to

 4  80 percent more energy than would be required if

 5  energy-conserving designs were used. The size, design,

 6  orientation, and operability of windows, the ratio of

 7  ventilating air to air heated or cooled, the level of lighting

 8  consonant with space-use requirements, the handling of

 9  occupancy loads, and the ability to zone off areas not

10  requiring equivalent levels of heating or cooling are but a

11  few of the considerations necessary to conserving energy.

12         (2)  Significant efforts are needed to build

13  energy-efficient state-owned buildings that meet environmental

14  standards underway by the General Services Administration, the

15  National Institute of Standards and Technology, and others to

16  detail the considerations and practices for energy

17  conservation in buildings. Most important is that

18  energy-efficient designs provide energy savings over the life

19  of the building structure. Conversely, energy-inefficient

20  designs cause excess and wasteful energy use and high costs

21  over that life. With buildings lasting many decades and with

22  energy costs escalating rapidly, it is essential that the

23  costs of operation and maintenance for energy-using equipment

24  and sustainable materials be included in all design proposals

25  for state-owned state buildings.

26         (3)  In order that such energy-efficiency

27  considerations and sustainable materials become a function of

28  building design, and also a model for future application in

29  the private sector, it shall be the policy of the state that

30  buildings constructed and financed by the state be designed

31  and constructed to meet the United States Green Building

                                  19

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 1  Council (USGBC) Leadership in Energy and Environmental Design

 2  (LEED) rating system, Green Building Initiative's Green Globes

 3  rating system, or a nationally recognized, high-performance

 4  green building rating system as approved by the department in

 5  a manner which will minimize the consumption of energy used in

 6  the operation and maintenance of such buildings. It is further

 7  the policy of the state, when economically feasible, to

 8  retrofit existing state-owned buildings in a manner which will

 9  minimize the consumption of energy used in the operation and

10  maintenance of such buildings.

11         (4)  In addition to designing and constructing new

12  buildings to be energy efficient energy-efficient, it shall be

13  the policy of the state to operate, maintain, and renovate

14  existing state-owned state facilities, or provide for their

15  renovation, in a manner that which will minimize energy

16  consumption and increase the facilities' sustainability as

17  well as ensure that facilities leased by the state are

18  operated so as to minimize energy use. Agencies are encouraged

19  to consider shared savings financing of such energy projects,

20  using contracts that which split the resulting savings for a

21  specified period of time between the agency and the private

22  firm or cogeneration contracts that which otherwise permit the

23  state to lower its energy costs. Such energy contracts may be

24  funded from the operating budget.

25         (5)  Each state agency must identify and compile a list

26  of all state-owned buildings within its inventory which would

27  be suitable for a guaranteed energy performance savings

28  contract pursuant to s. 489.145. Such list shall be submitted

29  to the Department of Management Services by December 31, 2007,

30  and shall include all facilities over 5,000 square feet in

31  area and for which the agency is responsible for paying the

                                  20

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 1  expenses of utilities and other operating expenses as they

 2  relate to energy use. In consultation with each department

 3  secretary or director, by March 1, 2008, the Department of

 4  Management Services shall evaluate each agency's facilities

 5  suitable for energy conservation projects and shall develop an

 6  energy-efficiency project schedule based on factors such as

 7  project magnitude, efficiency and effectiveness of energy

 8  conservation measures to be implemented, and other factors

 9  that may prove to be advantageous to pursue. Such schedule

10  shall provide the deadline for guaranteed energy performance

11  savings contract improvements to be made to the state-owned

12  buildings.

13         Section 9.  Subsections (6) and (7) are added to

14  section 255.253, Florida Statutes, to read:

15         255.253  Definitions; ss. 255.251-255.258.--

16         (6)  "Sustainable building" means a building that is

17  healthy and comfortable for its occupants and is economical to

18  operate while conserving resources, including energy, water,

19  raw materials, and land, and minimizing the generation of

20  toxic materials and waste in its design, construction,

21  landscaping, and operation.

22         (7)  "Sustainable building rating" means a rating

23  established by the United States Green Building Council

24  (USGBC) Leadership in Energy and Environmental Design (LEED)

25  rating system, Green Building Initiative's Green Globes rating

26  system, or a nationally recognized, high-performance green

27  building rating system as approved by the department.

28         Section 10.  Section 255.254, Florida Statutes, is

29  amended to read:

30         255.254  No facility constructed or leased without

31  life-cycle costs.--

                                  21

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 1         (1)  No state agency shall lease, construct, or have

 2  constructed, within limits prescribed herein, a facility

 3  without having secured from the department an a proper

 4  evaluation of life-cycle costs based on sustainable building

 5  ratings, as computed by an architect or engineer.

 6  Furthermore, construction shall proceed only upon disclosing,

 7  for the facility chosen, the life-cycle costs as determined in

 8  s. 255.255, its construction's sustainable building rating

 9  goal, and the capitalization of the initial construction costs

10  of the building. The life-cycle costs shall be a primary

11  consideration in the selection of a building design in

12  addition to its sustainable building rating goal. Such

13  analysis shall be required only for construction of buildings

14  with an area of 5,000 square feet or greater. For leased

15  buildings 5,000 areas of 20,000 square feet or greater within

16  a given building boundary, an energy performance analysis a

17  life-cycle analysis shall be performed, and a lease shall only

18  be made only where there is a showing that the energy

19  life-cycle costs incurred by the state are minimal compared to

20  available like facilities.

21         (2)  On and after January 1, 1979, no state agency

22  shall initiate construction or have construction initiated,

23  prior to approval thereof by the department, on a facility or

24  self-contained unit of any facility, the design and

25  construction of which incorporates or contemplates the use of

26  an energy system other than a solar energy system when the

27  life-cycle costs analysis prepared by the department has

28  determined that a solar energy system is the most

29  cost-efficient energy system for the facility or unit.

30         (3)  After September 30, 1985, when any state agency

31  must replace or supplement major items of energy-consuming

                                  22

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 1  equipment in existing state-owned or leased facilities or any

 2  self-contained unit of any facility with other major items of

 3  energy-consuming equipment, the selection of such items shall

 4  be made on the basis of a life-cycle cost analysis of

 5  alternatives in accordance with rules promulgated by the

 6  department under s. 255.255.

 7         Section 11.  Subsection (1) of section 255.255, Florida

 8  Statutes, is amended to read:

 9         255.255  Life-cycle costs.--

10         (1)  The department shall promulgate rules and

11  procedures, including energy conservation performance

12  guidelines based on sustainable building ratings, for

13  conducting a life-cycle cost analysis of alternative

14  architectural and engineering designs and alternative major

15  items of energy-consuming equipment to be retrofitted in

16  existing state-owned or leased facilities and for developing

17  energy performance indices to evaluate the efficiency of

18  energy utilization for competing designs in the construction

19  of state-financed and leased facilities.

20         Section 12.  Subsections (10) and (11) of section

21  287.064, Florida Statutes, are amended to read:

22         287.064  Consolidated financing of deferred-payment

23  purchases.--

24         (10)  Costs incurred pursuant to a guaranteed energy

25  performance savings contract, including the cost of energy

26  conservation measures, each as defined in s. 489.145, may be

27  financed pursuant to a master equipment financing agreement;

28  however, the costs of training, operation, and maintenance may

29  not be financed. The period of time for repayment of the funds

30  drawn pursuant to the master equipment financing agreement

31  under this subsection may exceed 5 years but may not exceed 20

                                  23

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 1  10 years for energy conservation measures pursuant to s.

 2  489.145, excluding the costs of training, operation, and

 3  maintenance. The guaranteed energy performance savings

 4  contractor shall provide for the replacement or the extension

 5  of the useful life of the equipment during the term of the

 6  contract.

 7         (11)  For purposes of consolidated financing of

 8  deferred payment commodity contracts under this section by a

 9  state agency, the annualized amount of any such contract must

10  be supported from available recurring funds appropriated to

11  the agency in an appropriation category, other than the

12  expense appropriation category as defined in chapter 216, that

13  the Chief Financial Officer has determined is appropriate or

14  that the Legislature has designated for payment of the

15  obligation incurred under this section.

16         Section 13.  Subsection (12) is added to section

17  287.16, Florida Statutes, to read:

18         287.16  Powers and duties of department.--The

19  Department of Management Services shall have the following

20  powers, duties, and responsibilities:

21         (12)  To conduct an inventory and determine the

22  percentage of motor vehicles purchased with state funds which

23  are flexible motor fuel vehicles or hybrid motor vehicles in

24  current use. Notwithstanding s. 287.151, the department shall

25  purchase over the next 3 years a sufficient number of flexible

26  motor fuel vehicles or hybrid motor vehicles to increase the

27  percentage of such vehicles in the state's inventory to 50

28  percent.

29         Section 14.  Section 366.93, Florida Statutes, is

30  amended to read:

31  

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 1         366.93  Cost recovery for the siting, design,

 2  licensing, and construction of nuclear and integrated

 3  gasification combined cycle power plants.--

 4         (1)  As used in this section, the term:

 5         (a)  "Cost" includes, but is not limited to, all

 6  capital investments, including rate of return, any applicable

 7  taxes, and all expenses, including operation and maintenance

 8  expenses, related to or resulting from the siting, licensing,

 9  design, construction, or operation of the nuclear or

10  integrated gasification combined cycle power plant.

11         (b)  "Electric utility" or "utility" has the same

12  meaning as that provided in s. 366.8255(1)(a).

13         (c)  "Integrated gasification combined cycle power

14  plant" or "plant" is an electrical power plant as defined in

15  s. 403.503(13) that uses synthesis gas produced by integrated

16  gasification technology.

17         (d)(c)  "Nuclear power plant" or "plant" is an

18  electrical power plant as defined in s. 403.503(13)(12) that

19  uses nuclear materials for fuel.

20         (e)  "Power plant" or "plant" means a nuclear power

21  plant or an integrated gasification combined cycle power

22  plant.

23         (f)(d)  "Preconstruction" is that period of time after

24  a site has been selected through and including the date the

25  utility completes site clearing work. Preconstruction costs

26  shall be afforded deferred accounting treatment and shall

27  accrue a carrying charge equal to the utility's allowance for

28  funds during construction (AFUDC) rate until recovered in

29  rates.

30         (2)  Within 6 months after the enactment of this act,

31  the commission shall establish, by rule, alternative cost

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 1  recovery mechanisms for the recovery of costs incurred in the

 2  siting, design, licensing, and construction of a nuclear or

 3  integrated gasification combined cycle power plant. Such

 4  mechanisms shall be designed to promote utility investment in

 5  nuclear or integrated gasification combined cycle power plants

 6  and allow for the recovery in rates of all prudently incurred

 7  costs, and shall include, but are not limited to:

 8         (a)  Recovery through the capacity cost recovery clause

 9  of any preconstruction costs.

10         (b)  Recovery through an incremental increase in the

11  utility's capacity cost recovery clause rates of the carrying

12  costs on the utility's projected construction cost balance

13  associated with the nuclear or integrated gasification

14  combined cycle power plant. To encourage investment and

15  provide certainty, for nuclear or integrated gasification

16  combined cycle power plant need petitions submitted on or

17  before December 31, 2010, associated carrying costs shall be

18  equal to the pretax AFUDC in effect upon this act becoming

19  law. For nuclear or integrated gasification combined cycle

20  power plants for which need petitions are submitted after

21  December 31, 2010, the utility's existing pretax AFUDC rate is

22  presumed to be appropriate unless determined otherwise by the

23  commission in the determination of need for the nuclear or

24  integrated gasification combined cycle power plant.

25         (3)  After a petition for determination of need is

26  granted, a utility may petition the commission for cost

27  recovery as permitted by this section and commission rules.

28         (4)  When the nuclear or integrated gasification

29  combined cycle power plant is placed in commercial service,

30  the utility shall be allowed to increase its base rate charges

31  by the projected annual revenue requirements of the nuclear or

                                  26

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 1  integrated gasification combined cycle power plant based on

 2  the jurisdictional annual revenue requirements of the plant

 3  for the first 12 months of operation. The rate of return on

 4  capital investments shall be calculated using the utility's

 5  rate of return last approved by the commission prior to the

 6  commercial inservice date of the nuclear or integrated

 7  gasification combined cycle power plant. If any existing

 8  generating plant is retired as a result of operation of the

 9  nuclear or integrated gasification combined cycle power plant,

10  the commission shall allow for the recovery, through an

11  increase in base rate charges, of the net book value of the

12  retired plant over a period not to exceed 5 years.

13         (5)  The utility shall report to the commission

14  annually the budgeted and actual costs as compared to the

15  estimated inservice cost of the nuclear or integrated

16  gasification combined cycle power plant provided by the

17  utility pursuant to s. 403.519(4), until the commercial

18  operation of the nuclear or integrated gasification combined

19  cycle power plant. The utility shall provide such information

20  on an annual basis following the final order by the commission

21  approving the determination of need for the nuclear or

22  integrated gasification combined cycle power plant, with the

23  understanding that some costs may be higher than estimated and

24  other costs may be lower.

25         (6)  In the event the utility elects not to complete or

26  is precluded from completing construction of the nuclear or

27  integrated gasification combined cycle power plant, the

28  utility shall be allowed to recover all prudent

29  preconstruction and construction costs incurred following the

30  commission's issuance of a final order granting a

31  determination of need for the nuclear or integrated

                                  27

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 1  gasification combined cycle power plant. The utility shall

 2  recover such costs through the capacity cost recovery clause

 3  over a period equal to the period during which the costs were

 4  incurred or 5 years, whichever is greater. The unrecovered

 5  balance during the recovery period will accrue interest at the

 6  utility's weighted average cost of capital as reported in the

 7  commission's earnings surveillance reporting requirement for

 8  the prior year.

 9         Section 15.  Subsection (4) of section 403.519, Florida

10  Statutes, is amended to read:

11         403.519  Exclusive forum for determination of need.--

12         (4)  In making its determination on a proposed

13  electrical power plant using nuclear materials or synthesis

14  gas produced by integrated gasification combined cycle power

15  plant as fuel, the commission shall hold a hearing within 90

16  days after the filing of the petition to determine need and

17  shall issue an order granting or denying the petition within

18  135 days after the date of the filing of the petition. The

19  commission shall be the sole forum for the determination of

20  this matter and the issues addressed in the petition, which

21  accordingly shall not be reviewed in any other forum, or in

22  the review of proceedings in such other forum. In making its

23  determination to either grant or deny the petition, the

24  commission shall consider the need for electric system

25  reliability and integrity, including fuel diversity, the need

26  for base-load generating capacity, and the need for adequate

27  electricity at a reasonable cost.

28         (a)  The applicant's petition shall include:

29         1.  A description of the need for the generation

30  capacity.

31  

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 1         2.  A description of how the proposed nuclear or

 2  integrated gasification combined cycle power plant will

 3  enhance the reliability of electric power production within

 4  the state by improving the balance of power plant fuel

 5  diversity and reducing Florida's dependence on fuel oil and

 6  natural gas.

 7         3.  A description of and a nonbinding estimate of the

 8  cost of the nuclear or integrated gasification combined cycle

 9  power plant.

10         4.  The annualized base revenue requirement for the

11  first 12 months of operation of the nuclear or integrated

12  gasification combined cycle power plant.

13         5.  Information on whether there were any discussions

14  with any electric utilities regarding ownership of a portion

15  of the nuclear or integrated gasification combined cycle power

16  plant by such electric utilities.

17         (b)  In making its determination, the commission shall

18  take into account matters within its jurisdiction, which it

19  deems relevant, including whether the nuclear or integrated

20  gasification combined cycle power plant will:

21         1.  Provide needed base-load capacity.

22         2.  Enhance the reliability of electric power

23  production within the state by improving the balance of power

24  plant fuel diversity and reducing Florida's dependence on fuel

25  oil and natural gas.

26         3.  Provide the most cost-effective source of power,

27  taking into account the need to improve the balance of fuel

28  diversity, reduce Florida's dependence on fuel oil and natural

29  gas, reduce air emission compliance costs, and contribute to

30  the long-term stability and reliability of the electric grid.

31  

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 1         (c)  No provision of rule 25-22.082, Florida

 2  Administrative Code, shall be applicable to a nuclear or

 3  integrated gasification combined cycle power plant sited under

 4  this act, including provisions for cost recovery, and an

 5  applicant shall not otherwise be required to secure

 6  competitive proposals for power supply prior to making

 7  application under this act or receiving a determination of

 8  need from the commission.

 9         (d)  The commission's determination of need for a

10  nuclear or integrated gasification combined cycle power plant

11  shall create a presumption of public need and necessity and

12  shall serve as the commission's report required by s.

13  403.507(4)(a). An order entered pursuant to this section

14  constitutes final agency action. Any petition for

15  reconsideration of a final order on a petition for need

16  determination shall be filed within 5 days after the date of

17  such order. The commission's final order, including any order

18  on reconsideration, shall be reviewable on appeal in the

19  Florida Supreme Court. Inasmuch as delay in the determination

20  of need will delay siting of a nuclear or integrated

21  gasification combined cycle power plant or diminish the

22  opportunity for savings to customers under the federal Energy

23  Policy Act of 2005, the Supreme Court shall proceed to hear

24  and determine the action as expeditiously as practicable and

25  give the action precedence over matters not accorded similar

26  precedence by law.

27         (e)  After a petition for determination of need for a

28  nuclear or integrated gasification combined cycle power plant

29  has been granted, the right of a utility to recover any costs

30  incurred prior to commercial operation, including, but not

31  limited to, costs associated with the siting, design,

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 1  licensing, or construction of the plant, shall not be subject

 2  to challenge unless and only to the extent the commission

 3  finds, based on a preponderance of the evidence adduced at a

 4  hearing before the commission under s. 120.57, that certain

 5  costs were imprudently incurred. Proceeding with the

 6  construction of the nuclear or integrated gasification

 7  combined cycle power plant following an order by the

 8  commission approving the need for the nuclear or integrated

 9  gasification combined cycle power plant under this act shall

10  not constitute or be evidence of imprudence. Imprudence shall

11  not include any cost increases due to events beyond the

12  utility's control. Further, a utility's right to recover costs

13  associated with a nuclear or integrated gasification combined

14  cycle power plant may not be raised in any other forum or in

15  the review of proceedings in such other forum. Costs incurred

16  prior to commercial operation shall be recovered pursuant to

17  chapter 366.

18         Section 16.  Section 377.802, Florida Statutes, is

19  amended to read:

20         377.802  Purposes Purpose.--

21         (1)  This act is intended to provide matching grants to

22  stimulate capital investment in the state and to enhance the

23  market for and promote the statewide utilization of renewable

24  energy technologies. The targeted grants program is designed

25  to advance the already growing establishment of renewable

26  energy technologies in the state and encourage the use of

27  other incentives such as tax exemptions and regulatory

28  certainty to attract additional renewable energy technology

29  producers, developers, and users to the state.

30         (2)  This act is also intended to provide incentives

31  for the purchase of energy-efficient appliances and rebates

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 1  for solar energy equipment installations for residential and

 2  commercial buildings. In order to promote energy efficiency

 3  and conservation of the state's resources, the month of

 4  October shall annually be designated "Energy Efficiency and

 5  Conservation Month."

 6         Section 17.  Subsection (2) of section 377.803, Florida

 7  Statutes, is repealed.

 8         Section 18.  Subsection (6) of section 377.804, Florida

 9  Statutes, is repealed.

10         Section 19.  Section 377.806, Florida Statutes, is

11  amended to read:

12         377.806  Solar Energy System Incentives Program.--

13         (1)  PURPOSE.--The Solar Energy System Incentives

14  Program is established within the department to provide

15  financial incentives for the purchase and installation of

16  solar energy systems.

17         (2)  ELIGIBILITY.--

18         (a)  Any resident of the state who purchases and

19  installs a new solar energy system of 2 kilowatts or larger

20  for a solar photovoltaic system, a solar energy system that

21  provides at least 50 percent of a building's hot water

22  consumption for a solar thermal system, or a solar thermal

23  pool heater, from July 1, 2006, through June 30, 2010, is

24  eligible for a rebate on a portion of the purchase price of

25  that solar energy system.

26         (b)  Payment of a rebate may be made only to the final

27  purchaser of an eligible system.

28         (3)(2)  SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.--

29         (a)  System Eligibility requirements.--A solar

30  photovoltaic system qualifies for a rebate if:

31  

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 1         1.  The system is installed by a state-licensed master

 2  electrician, electrical contractor, or solar contractor.

 3         2.  The system complies with state interconnection

 4  standards as provided by the commission.

 5         3.  The system complies with all applicable building

 6  codes as defined by the local jurisdictional authority.

 7         (b)  Rebate amounts.--The rebate amount shall be set at

 8  $4 per watt based on the total wattage rating of the system.

 9  The maximum allowable rebate per solar photovoltaic system

10  installation shall be as follows:

11         1.  Twenty thousand dollars for a residence.

12         2.  One hundred thousand dollars for a place of

13  business, a publicly owned or operated facility, or a facility

14  owned or operated by a private, not-for-profit organization,

15  including condominiums or apartment buildings.

16         (4)(3)  SOLAR THERMAL SYSTEM INCENTIVE.--

17         (a)  Eligibility requirements.--A solar thermal system

18  qualifies for a rebate if:

19         1.  The system is installed by a state-licensed solar

20  or plumbing contractor.

21         2.  The system complies with all applicable building

22  codes as defined by the local jurisdictional authority.

23         (b)  Rebate amounts.--Authorized rebates for

24  installation of solar thermal systems shall be as follows:

25         1.  Five hundred dollars for a residence.

26         2.  Fifteen dollars per 1,000 Btu up to a maximum of

27  $5,000 for a place of business, a publicly owned or operated

28  facility, or a facility owned or operated by a private,

29  not-for-profit organization, including condominiums or

30  apartment buildings. Btu must be verified by approved metering

31  equipment.

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 1         (5)(4)  SOLAR THERMAL POOL HEATER INCENTIVE.--

 2         (a)  Eligibility requirements.--A solar thermal pool

 3  heater qualifies for a rebate if the system is installed by a

 4  state-licensed solar or plumbing contractor and the system

 5  complies with all applicable building codes as defined by the

 6  local jurisdictional authority.

 7         (b)  Rebate amount.--Authorized rebates for

 8  installation of solar thermal pool heaters shall be $100 per

 9  installation.

10         (6)(5)  APPLICATION.--Application for a rebate must be

11  made within 90 days after the purchase of the solar energy

12  equipment.

13         (7)  LIMITS.--Rebates are limited to one per type of

14  system described in paragraph (2)(a) per resident per state

15  fiscal year.

16         (8)(6)  REBATE AVAILABILITY.--The department shall

17  determine and publish on a regular basis the amount of rebate

18  funds remaining in each fiscal year. The total dollar amount

19  of all rebates issued by the department is subject to the

20  total amount of appropriations in any fiscal year for this

21  program. If funds are insufficient during the current fiscal

22  year, any requests for rebates received during that fiscal

23  year may be processed during the following fiscal year.

24  Requests for rebates received in a fiscal year that are

25  processed during the following fiscal year shall be given

26  priority over requests for rebates received during the

27  following fiscal year.

28         (9)(7)  RULES.--The department shall adopt rules

29  pursuant to ss. 120.536(1) and 120.54 to develop rebate

30  applications and administer the issuance of rebates.

31  

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 1         Section 20.  Section 212.0802, Florida Statutes, is

 2  created to read:

 3         212.0802  Sales tax exemption for energy efficient

 4  products.--

 5         (1)  To encourage Floridians to conserve energy and use

 6  energy efficiently, the weeks beginning October 1, 2007, and

 7  March 3, 2008, are designated "Energy Efficiency and

 8  Conservation Weeks."

 9         (2)  The tax levied under this chapter may not be

10  collected from 12:01 a.m., October 1, 2007, through midnight,

11  October 7, 2007, and from 12:01 a.m., March 3, 2008, through

12  midnight, March 9, 2008, on the sale of a new energy-efficient

13  product having a selling price of $1,500 or less per product

14  during that period. This exemption applies only when the

15  energy-efficient product is purchased for noncommercial home

16  or personal use and does not apply when the product is

17  purchased for trade, business, or resale. As used in this

18  section, the term "energy-efficient product" means a

19  dishwasher, clothes washer, air conditioner, ceiling fan,

20  compact fluorescent light bulb, dehumidifier, programmable

21  thermostat, or refrigerator that has been designated by the

22  United States Environmental Protection Agency or by the United

23  States Department of Energy as meeting or exceeding the

24  requirements under the Energy Star Program of either agency.

25  Purchases made under this section may not be made using a

26  business or company credit or debit card or check. Any

27  construction company, building contractor, or commercial

28  business or entity that purchases or attempts to purchase the

29  energy-efficient products as exempt under this section commits

30  an unfair method of competition in violation of s. 501.204,

31  punishable as provided in s. 501.2075. The Department of

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 1  Revenue may adopt rules under ss. 120.536(1) and 120.54 to

 2  administer this section.

 3         Section 21.  Section 377.901, Florida Statutes, is

 4  amended to read:

 5         377.901  Florida Energy Commission.--

 6         (1)  The Florida Energy Commission is created and shall

 7  be located within the Office of Legislative Services but is to

 8  otherwise function independently for administrative purposes.

 9  The commission shall be comprised of a total of 13 nine

10  members.

11         (a)  The members shall be appointed as follows: the

12  Governor, the President of the Senate, and the Speaker of the

13  House of Representatives shall appoint four members each and

14  shall jointly appoint the 13th ninth member, who shall serve

15  as chair, except that the term of the first chair previously

16  appointed by the President of the Senate and the Speaker of

17  the House of Representatives prior to the Governor's ability

18  to appoint commissioners shall not be affected by the

19  additional commissioners to be appointed by the Governor. If

20  at any time a sitting commissioner is appointed chair, that

21  commissioner shall begin a new 2-year term at the time of

22  appointment. Members shall be appointed to 2-year terms;

23  however, in order to establish staggered terms, for the

24  initial appointments, each appointing official shall appoint

25  two members to a 1-year term and two members to a 2-year term.

26  The Governor's initial appointments shall also be staggered in

27  the manner described in this paragraph. Members must meet the

28  following qualifications and restrictions:

29         1.  A member must be an expert in one or more of the

30  following fields: energy, natural resource conservation,

31  economics, engineering, finance, law, consumer protection,

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 1  state energy policy, or another field substantially related to

 2  the duties and functions of the commission. The commission

 3  shall fairly represent the fields specified in this

 4  subparagraph.

 5         2.  Each member shall, at the time of appointment and

 6  at each commission meeting during his or her term of office,

 7  disclose:

 8         a.  Whether he or she has any financial interest, other

 9  than ownership of shares in a mutual fund, in any business

10  entity that, directly or indirectly, owns or controls, or is

11  an affiliate or subsidiary of, any business entity that may

12  profit by the policy recommendations developed by the

13  commission.

14         b.  Whether he or she is employed by or is engaged in

15  any business activity with any business entity that, directly

16  or indirectly, owns or controls, or is an affiliate or

17  subsidiary of, any business entity that may profit by the

18  policy recommendations developed by the commission.

19         (b)  The following are ex officio, nonvoting members

20  who may also attend meetings and provide information and

21  advise at the request of the chair:

22         1.  The chair of the Florida Public Service Commission,

23  or his or her designee.

24         2.  The Public Counsel, or his or her designee.

25         3.  The Commissioner of Agriculture, or his or her

26  designee.

27         4.  The Director of the Office of Insurance Regulation,

28  or his or her designee.

29         5.  The Secretary of Health, or his or her designee.

30         6.  The chair of the State Board of Education, or his

31  or her designee.

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 1         7.  The Secretary of Community Affairs, or his or her

 2  designee.

 3         8.  The Secretary of Transportation, or his or her

 4  designee.

 5         9.  The Secretary of Environmental Protection, or his

 6  or her designee.

 7         (2)  Members shall serve without compensation but are

 8  entitled to reimbursement for per diem and travel expenses as

 9  provided in s. 112.061. Ex officio, nonvoting members are

10  entitled to the same reimbursement through their respective

11  agency budgets.

12         (3)  Meetings of the commission shall be held in

13  various locations around the state and at the call of the

14  chair; however, the commission must meet at least twice each

15  year.

16         (4)(a)  The commission may employ staff to assist in

17  the performance of its duties, including an executive

18  director, an attorney, a communications staff member, and an

19  executive assistant. To carry out the duties of the

20  commission, the chair of the commission, or the chair's

21  designee, shall make all spending decisions within the annual

22  operating budget approved by the President of the Senate and

23  the Speaker of the House of Representatives, including the

24  compensation of the commission's staff.

25         (b)  The commission may form advisory groups consisting

26  of members of the public to provide information on specific

27  issues.

28         (5)  The commission shall develop recommendations for

29  legislation to establish a state energy policy. The

30  recommendations of the commission shall be based on the

31  guiding principles of reliability, efficiency, affordability,

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 1  and diversity as provided in subsection (7). The commission

 2  shall continually review the state energy policy and shall

 3  recommend to the Legislature any additional necessary changes

 4  or improvements. In carrying out this responsibility, the

 5  commission may conduct research, hold public meetings, and

 6  make recommendations on any individual substantive issue that

 7  may be included in such policy, including, but not limited to,

 8  climate change, greenhouse gas reduction, renewable energy,

 9  conservation, and power generation, transmission, and

10  distribution.

11         (6)(a)  The commission shall report by December 31 of

12  each year to the Governor, the President of the Senate, and

13  the Speaker of the House of Representatives on its progress

14  and recommendations, including draft legislation.

15         (b)  The commission's initial report must be filed by

16  December 31, 2007, and must identify incentives for research,

17  development, or deployment projects involving the goals and

18  issues set forth in this section; set forth policy

19  recommendations for conservation of all forms of energy; and

20  set forth a plan of action, together with a timetable, for

21  addressing additional issues.

22         (c)  The commission's initial report shall also

23  recommend consensus-based public-involvement processes that

24  evaluate greenhouse gas emissions in this state and make

25  recommendations regarding related economic, energy, and

26  environmental benefits.

27         (c)(d)  The report must include a recommendation

28  recommended steps and a schedule for the development of a

29  comprehensive state climate action plan with greenhouse gas

30  reduction through a public-involvement process, including

31  transportation and land use; power generation; residential,

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 1  commercial, and industrial activities; waste management;

 2  agriculture and forestry; emissions-reporting systems; and

 3  public education.

 4         (7)  In developing its recommendations, the commission

 5  shall be guided by the principles of reliability, efficiency,

 6  affordability, and diversity, and more specifically as

 7  follows:

 8         (a)  The state should have a reliable electric supply

 9  with adequate reserves.

10         (b)  The transmission and delivery of electricity

11  should be reliable.

12         (c)  The generation, transmission, and delivery of

13  electricity should be accomplished with the least detriment to

14  the environment and public health.

15         (d)  The generation, transmission, and delivery of

16  electricity should be accomplished compatibly with the goals

17  for growth management.

18         (e)  Electricity generation, transmission, and delivery

19  facilities should be reasonably secure from damage, taking all

20  factors into consideration, and recovery from damage should be

21  prompt.

22         (f)  Electric rates should be affordable, as to base

23  rates and all recovery-clause additions, with sufficient

24  incentives for utilities to achieve this goal.

25         (g)  The state should have a reliable supply of motor

26  vehicle fuels, both under normal circumstances and during

27  hurricanes and other emergency situations.

28         (h)  In-state research, development, and deployment of

29  alternative energy technologies and alternative motor vehicle

30  fuels should be encouraged.

31  

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 1         (i)  When possible, the resources of the state should

 2  be used in achieving the goals enumerated in this subsection.

 3         (j)  Consumers of energy should be encouraged and given

 4  incentives to be more efficient in their use of energy.

 5         (8)  The commission's first report shall also contain

 6  recommendations on net metering. The commission shall research

 7  the application of net metering in those situations in which a

 8  customer of an electric utility produces, by means of one or

 9  more renewable energy systems, more energy than he or she uses

10  and as a result has excess energy to sell back to the electric

11  utility. The commission's research shall address the

12  appropriateness of this process for encouraging the

13  development and use of renewable energy systems, power

14  generation reliability, pricing considerations, and any other

15  factor the commission deems necessary for an understanding of

16  the issue.

17  

18  It is the specific intent of the Legislature that nothing in

19  this section shall in any way change the powers, duties, and

20  responsibilities of the Public Service Commission or the

21  powers, duties, and responsibilities assigned by the Florida

22  Electrical Power Plant Siting Act, ss. 403.501-403.518.

23         Section 22.  Section 403.0874, Florida Statutes, is

24  created to read:

25         403.0874  Greenhouse gas inventories.--

26         (1)  The Department of Environmental Protection shall

27  develop gas inventories of all major greenhouse gases to

28  account for annual greenhouse gases emitted to and removed

29  from the atmosphere, and shall also forecast gases emitted and

30  removed, for time periods determined sufficient by the

31  department to provide for adequate analysis and planning.

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 1         (2)  By rule, the department shall define which

 2  greenhouse gases are to be included in each inventory, the

 3  criteria for defining major emitters, which emitters must

 4  report emissions, and what methodologies shall be used to

 5  estimate gases emitted and removed from those not required to

 6  report.

 7         (3)  The department may require all major emitters of

 8  defined greenhouse gases to report emissions according to

 9  methodologies and reporting systems approved by the department

10  and established by rule, which may include the use of

11  quality-assured data from continuous emissions monitoring

12  systems.

13         (4)  The department shall provide a summary report of

14  greenhouse gas inventories at least once a year to the Florida

15  Energy Commission created by s. 377.901 for its use in its

16  long-term evaluations and for preparing the report required by

17  s. 377.901(6).

18         Section 23.  Section 489.145, Florida Statutes, is

19  amended to read:

20         489.145  Guaranteed energy performance savings

21  contracting.--

22         (1)  SHORT TITLE.--This section may be cited as the

23  "Guaranteed Energy Performance Savings Contracting Act."

24         (2)  LEGISLATIVE FINDINGS.--The Legislature finds that

25  investment in energy conservation measures in agency

26  facilities can reduce the amount of energy consumed and

27  produce immediate and long-term savings. It is the policy of

28  this state to encourage agencies to invest in energy

29  conservation measures that reduce energy consumption, produce

30  a cost savings for the agency, and improve the quality of

31  indoor air in public facilities and to operate, maintain, and,

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 1  when economically feasible, build or renovate existing agency

 2  facilities in such a manner as to minimize energy consumption

 3  and maximize energy savings. It is further the policy of this

 4  state to encourage agencies to reinvest any energy savings

 5  resulting from energy conservation measures in additional

 6  energy conservation efforts.

 7         (3)  DEFINITIONS.--As used in this section, the term:

 8         (a)  "Agency" means the state, a municipality, or a

 9  political subdivision.

10         (b)  "Energy conservation measure" means a training

11  program, facility alteration, or an equipment purchase to be

12  used in new construction, including an addition to an existing

13  facility, which reduces energy or energy-related operating

14  costs and includes, but is not limited to:

15         1.  Insulation of the facility structure and systems

16  within the facility.

17         2.  Storm windows and doors, caulking or

18  weatherstripping, multiglazed windows and doors,

19  heat-absorbing, or heat-reflective, glazed and coated window

20  and door systems, additional glazing, reductions in glass

21  area, and other window and door system modifications that

22  reduce energy consumption.

23         3.  Automatic energy control systems.

24         4.  Heating, ventilating, or air-conditioning system

25  modifications or replacements.

26         5.  Replacement or modifications of lighting fixtures

27  to increase the energy efficiency of the lighting system,

28  which, at a minimum, must conform to the applicable state or

29  local building code.

30         6.  Energy recovery systems.

31  

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 1         7.  Cogeneration systems that produce steam or forms of

 2  energy such as heat, as well as electricity, for use primarily

 3  within a facility or complex of facilities.

 4         8.  Energy conservation measures that reduce Btu, kW,

 5  or kWh consumed or provide long-term operating cost reductions

 6  or significantly reduce Btu consumed.

 7         9.  Renewable energy systems, such as solar, biomass,

 8  or wind systems.

 9         10.  Devices that reduce water consumption or sewer

10  charges.

11         11.  Storage systems, such as fuel cells and thermal

12  storage.

13         12.  Generating technologies, such as microturbines.

14         13.  Any other repair, replacement, or upgrade of

15  existing equipment.

16         (c)  "Energy cost savings" means a measured reduction

17  in the cost of fuel, energy consumption, and stipulated

18  operation and maintenance created from the implementation of

19  one or more energy conservation measures when compared with an

20  established baseline for the previous cost of fuel, energy

21  consumption, and stipulated operation and maintenance.

22         (d)  "Guaranteed energy performance savings contract"

23  means a contract for the evaluation, recommendation, and

24  implementation of energy conservation measures or

25  energy-related operational savings measures, which, at a

26  minimum, shall include:

27         1.  The design and installation of equipment to

28  implement one or more of such measures and, if applicable,

29  operation and maintenance of such measures.

30         2.  The amount of any actual annual savings that meet

31  or exceed total annual contract payments made by the agency

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 1  for the contract and may include allowable cost avoidance. As

 2  used in this section, allowable cost-avoidance calculations

 3  include, but are not limited to, avoided provable budgeted

 4  costs contained in a capital replacement plan less the current

 5  undepreciated value of replaced equipment and the replacement

 6  cost of the new equipment.

 7         3.  The finance charges incurred by the agency over the

 8  life of the contract.

 9         (e)  "Guaranteed energy performance savings contractor"

10  means a person or business that is licensed under chapter 471,

11  chapter 481, or this chapter, and is experienced in the

12  analysis, design, implementation, or installation of energy

13  conservation measures through energy performance contracts.

14         (4)  PROCEDURES.--

15         (a)  An agency may enter into a guaranteed energy

16  performance savings contract with a guaranteed energy

17  performance savings contractor to significantly reduce energy

18  consumption or energy-related operating costs of an agency

19  facility through one or more energy conservation measures.

20         (b)  Before design and installation of energy

21  conservation measures, the agency must obtain from a

22  guaranteed energy performance savings contractor a report that

23  summarizes the costs associated with the energy conservation

24  measures or energy-related operational-cost-savings measures

25  and provides an estimate of the amount of the energy cost

26  savings. The agency and the guaranteed energy performance

27  savings contractor may enter into a separate agreement to pay

28  for costs associated with the preparation and delivery of the

29  report; however, payment to the contractor shall be contingent

30  upon the report's projection of energy or operational cost

31  savings being equal to or greater than the total projected

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 1  costs of the design and installation of the report's energy

 2  conservation measures.

 3         (c)  The agency may enter into a guaranteed energy

 4  performance savings contract with a guaranteed energy

 5  performance savings contractor if the agency finds that the

 6  amount the agency would spend on the energy conservation or

 7  energy-related cost savings measures will not likely exceed

 8  the amount of the energy or energy-related cost savings for up

 9  to 20 years from the date of installation, based on the life

10  cycle cost calculations provided in s. 255.255, if the

11  recommendations in the report were followed and if the

12  qualified provider or providers give a written guarantee that

13  the energy or energy-related cost savings will meet or exceed

14  the costs of the system. However, actual computed cost savings

15  must meet or exceed the estimated cost savings provided in

16  program approval. Baseline adjustments used in calculations

17  must be specified in the contract. The contract may provide

18  for installment payments for a period not to exceed 20 years.

19         (d)  A guaranteed energy performance savings contractor

20  must be selected in compliance with s. 287.055; except that if

21  fewer than three firms are qualified to perform the required

22  services, the requirement for agency selection of three firms,

23  as provided in s. 287.055(4)(b), and the bid requirements of

24  s. 287.057 do not apply.

25         (e)  Before entering into a guaranteed energy

26  performance savings contract, an agency must provide published

27  notice of the meeting in which it proposes to award the

28  contract, the names of the parties to the proposed contract,

29  and the contract's purpose.

30         (f)  A guaranteed energy performance savings contract

31  may provide for financing, including tax exempt financing, by

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 1  a third party. The contract for third party financing may be

 2  separate from the energy performance contract.  A separate

 3  contract for third party financing must include a provision

 4  that the third party financier pursuant to this paragraph must

 5  not be granted rights or privileges that exceed the rights and

 6  privileges available to the guaranteed energy performance

 7  savings contractor.

 8         (g)  Financing for guaranteed energy performance

 9  savings contracts may be provided under the authority of s.

10  287.064.

11         (h)  The Office of the Chief Financial Officer shall

12  review proposals to ensure that the most effective financing

13  is being used.

14         (i)(g)  In determining the amount the agency will

15  finance to acquire the energy conservation measures, the

16  agency may reduce such amount by the application of any grant

17  moneys, rebates, or capital funding available to the agency

18  for the purpose of buying down the cost of the guaranteed

19  energy performance savings contract. However, in calculating

20  the life cycle cost as required in paragraph (c), the agency

21  shall not apply any grants, rebates, or capital funding.

22         (5)  CONTRACT PROVISIONS.--

23         (a)  A guaranteed energy performance savings contract

24  must include a written guarantee that may include, but is not

25  limited to the form of, a letter of credit, insurance policy,

26  or corporate guarantee by the guaranteed energy performance

27  savings contractor that annual energy cost savings will meet

28  or exceed the amortized cost of energy conservation measures.

29         (b)  The guaranteed energy performance savings contract

30  must provide that all payments, except obligations on

31  termination of the contract before its expiration, may be made

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 1  over time, but not to exceed 20 years from the date of

 2  complete installation and acceptance by the agency, and that

 3  the annual savings are guaranteed to the extent necessary to

 4  make annual payments to satisfy the guaranteed energy

 5  performance savings contract.

 6         (c)  The guaranteed energy performance savings contract

 7  must require that the guaranteed energy performance savings

 8  contractor to whom the contract is awarded provide a

 9  100-percent public construction bond to the agency for its

10  faithful performance, as required by s. 255.05.

11         (d)  The guaranteed energy performance savings contract

12  may contain a provision allocating to the parties to the

13  contract any annual energy cost savings that exceed the amount

14  of the energy cost savings guaranteed in the contract.

15         (e)  The guaranteed energy performance savings contract

16  shall require the guaranteed energy performance savings

17  contractor to provide to the agency an annual reconciliation

18  of the guaranteed energy or energy-related cost savings. If

19  the reconciliation reveals a shortfall in annual energy or

20  energy-related cost savings, the guaranteed energy performance

21  savings contractor is liable for such shortfall. If the

22  reconciliation reveals an excess in annual energy cost

23  savings, the excess savings may be allocated under paragraph

24  (d) but may not be used to cover potential energy cost savings

25  shortages in subsequent contract years.

26         (f)  The guaranteed energy performance savings contract

27  must provide for payments of not less than one-twentieth of

28  the price to be paid within 2 years from the date of the

29  complete installation and acceptance by the agency using

30  straight-line amortization for the term of the loan, and the

31  

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 1  remaining costs to be paid at least quarterly, not to exceed a

 2  20-year term, based on life cycle cost calculations.

 3         (g)  The guaranteed energy performance savings contract

 4  may extend beyond the fiscal year in which it becomes

 5  effective; however, the term of any contract expires at the

 6  end of each fiscal year and may be automatically renewed

 7  annually for up to 20 years, subject to the agency making

 8  sufficient annual appropriations based upon continued realized

 9  energy savings.

10         (h)  The guaranteed energy performance savings contract

11  must stipulate that it does not constitute a debt, liability,

12  or obligation of the state.

13         (6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The

14  Department of Management Services, with the assistance of the

15  Office of the Chief Financial Officer, shall may, within

16  available resources, provide technical content assistance to

17  state agencies contracting for energy conservation measures

18  and engage in other activities considered appropriate by the

19  department for promoting and facilitating guaranteed energy

20  performance contracting by state agencies. The Office of the

21  Chief Financial Officer, with the assistance of the Department

22  of Management Services, shall may, within available resources,

23  develop model contractual and related documents for use by

24  state agencies. Prior to entering into a guaranteed energy

25  performance savings contract, any contract or lease for

26  third-party financing, or any combination of such contracts, a

27  state agency shall submit such proposed contract or lease to

28  the Office of the Chief Financial Officer for review and

29  approval.

30         A proposed contract or lease shall include:

31  

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 1         (a)  Supporting information required by s.

 2  216.023(4)(a)9.

 3         (b)  Documentation supporting recurring funds

 4  requirements in ss. 287.063(5) and 287.064(11).

 5         (c)  Approval by the agency head or his or her

 6  designee.

 7         (d)  An agency measurement and verification plan to

 8  monitor cost savings.

 9         (7)  FUNDING SUPPORT.--For purposes of consolidated

10  financing of deferred payment commodity contracts under this

11  section by a state agency, the annualized amount of any such

12  contract must be supported from available recurring funds

13  appropriated to the agency in an appropriation category, as

14  defined in chapter 216, which the Chief Financial Officer has

15  determined is appropriate or which the Legislature has

16  designated for payment of the obligation incurred under this

17  section.

18  

19  The Office of the Chief Financial Officer may not approve any

20  contract submitted under this section which does not meet the

21  requirements of this section.

22         Section 24.  Section 570.956, Florida Statutes, is

23  created to read:

24         570.956  Farm-to-Fuel Advisory Council.

25         (1)  The Farm-to-Fuel Advisory Council is created

26  within the department to provide advice and counsel to the

27  commissioner concerning the production of renewable energy in

28  this state. The advisory council shall consist of 15 members,

29  14 of whom shall be appointed by the commissioner and one of

30  whom shall be appointed by the Governor for 4-year terms or

31  

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 1  until a successor is duly qualified and appointed. Members

 2  shall include:

 3         (a)  One citizen-at-large member who represents the

 4  views of the public toward renewable energy.

 5         (b)  Six members, each of whom is a producer or grower

 6  actively engaged in the agricultural area of one of the

 7  following industries:

 8         1.  Sugarcane.

 9         2.  Citrus.

10         3.  Field crops.

11         4.  Dairy.

12         5.  Livestock or poultry.

13         6.  Forestry.

14         (c)  One member who represents the petroleum industry

15  or who is actively engaged in the trade of petroleum products.

16         (d)  One member who represents public utilities or the

17  electric power industry.

18         (e)  Two members who represent colleges and

19  universities in this state and who are engaged in research

20  involving alternative fuels or renewable energy.

21         (f)  One member who represents the environmental

22  community or an environmental organization.

23         (g)  One member who represents the ethanol industry or

24  who has expertise in the production of ethanol.

25         (h)  One member who represents the biodiesel industry

26  or who has expertise in the production of biodiesel.

27         (i)  One member appointed by the Governor.

28         (2)  The council is an advisory committee the operation

29  of which is governed by s. 570.0705.

30         Section 25.  Section 570.957, Florida Statutes, is

31  created to read:

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 1         570.957  Farm-to-Fuel Grants Program.

 2         (1)  As used in this section, the term:

 3         (a)  "Bioenergy" means useful, renewable energy

 4  produced from organic matter through the conversion of the

 5  complex carbohydrates in organic matter to energy. Organic

 6  matter may be used directly as a fuel, be processed into

 7  liquids or gases, or constitute a residue of processing and

 8  conversion.

 9         (b)  "Department" means the Department of Agriculture

10  and Consumer Services.

11         (c)  "Person" means an individual, partnership, joint

12  venture, private or public corporation, association, firm,

13  public service company, or other public or private entity.

14         (d)  "Renewable energy" means electrical, mechanical,

15  or thermal energy produced from a method that uses one or more

16  of the following fuels or energy sources: hydrogen, biomass,

17  solar energy, geothermal energy, wind energy, ocean energy,

18  waste heat, or hydroelectric power.

19         (2)  The Farm-to-Fuel Grants Program is established

20  within the Department of Agriculture and Consumer Services to

21  provide renewable energy matching grants for demonstration,

22  commercialization, research, and development projects relating

23  to bioenergy projects.

24         (a)  Matching grants for bioenergy demonstration,

25  commercialization, research, and development projects may be

26  made to any of the following:

27         1.  Municipalities and county governments.

28         2.  Established for-profit companies licensed to do

29  business in the state.

30         3.  Universities and colleges in the state.

31         4.  Utilities located and operating within the state.

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 1         5.  Not-for-profit organizations.

 2         6.  Other qualified persons, as determined by the

 3  Department of Agriculture and Consumer Services.

 4         (b)  The Department of Agriculture and Consumer

 5  Services may adopt rules to provide for allocation of grant

 6  funds by project type, application requirements, ranking of

 7  applications, and awarding of grants under this program.

 8         (c)  Factors for consideration in awarding grants may

 9  include, but are not limited to, the degree to which:

10         1.  The project produces bioenergy from Florida-grown

11  crops or biomass.

12         2.  The project demonstrates efficient use of energy

13  and material resources.

14         3.  Matching funds and in-kind contributions from an

15  applicant are available.

16         4.  The project has a reasonable assurance of enhancing

17  the value of agricultural products or will expand agribusiness

18  in the state.

19         5.  Preliminary market and feasibility research has

20  been conducted by the applicant or others and shows that there

21  is a reasonable assurance of a potential market.

22         6.  The project stimulates in-state capital investment

23  and economic development in metropolitan and rural areas,

24  including the creation of jobs and the future development of a

25  commercial market for bioenergy.

26         (d)  In evaluating and awarding grants under this

27  section, the Department of Agriculture and Consumer Services

28  shall consult with and solicit input from the Department of

29  Environmental Protection.

30         (e)  In determining the technical feasibility of grant

31  applications, the Department of Agriculture and Consumer

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 1  Services shall coordinate and actively consult with persons

 2  having expertise in renewable energy technologies.

 3         (f)  In determining the economic feasibility of

 4  bioenergy grant applications, the Department of Agriculture

 5  and Consumer Services shall consult with the Office of

 6  Tourism, Trade, and Economic Development.

 7         Section 26.  Section 570.958, Florida Statutes, is

 8  created to read:

 9         570.958  Biofuel Retail Sales Incentive Program.--

10         (1)  The purpose of this section is to encourage the

11  retail sale of biofuels in this state and replace petroleum

12  consumption in the state by the following percentages over the

13  specified periods:

14         (a)  Three percent from January 1, 2008, through

15  December 31, 2008.

16         (b)  Five percent from January 1, 2009, through

17  December 31, 2009.

18         (c)  Seven percent from January 1, 2010, through

19  December 31, 2010.

20         (d)  Ten percent from January 1, 2011, through December

21  31, 2011.

22         (2)  As used in this section, the term:

23         (a)  "Biodiesel" means the mono-alkyl esters of

24  long-chain fatty acids derived from plant or animal matter for

25  use as a source of energy and meeting the specifications for

26  biodiesel and biodiesel blended with petroleum products as

27  adopted by the department.

28         (b)  "Biodiesel blended fuel" means a fuel mixture

29  containing 10 percent or more biodiesel with the balance

30  comprised of diesel fuel and meeting the specifications for

31  biodiesel blends as adopted by the department.

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 1         (c)  "Biofuel" means E85 fuel ethanol, E10 motor fuel,

 2  biodiesel, and biodiesel blended fuel.

 3         (d)  "E85 fuel ethanol" means ethanol blended with

 4  gasoline and formulated with a nominal percentage of 85

 5  percent ethanol by volume and meeting the applicable fuel

 6  quality specifications as adopted by the department.

 7         (e)  "E10 motor fuel" means a motor fuel blend

 8  consisting of nominal percentages of 90 percent gasoline by

 9  volume and 10 percent ethanol by volume and meeting the fuel

10  quality specifications for gasoline as adopted by the

11  department.

12         (f)  "Ethanol or fuel ethanol" means an anhydrous

13  denatured alcohol produced by the conversion of carbohydrates

14  and meeting the specifications for fuel ethanol as adopted by

15  the department.

16         (g)  "Fuel dispenser" means a pump, meter, or similar

17  device used to measure and deliver motor fuel or diesel fuel

18  on a retail basis.

19         (h)  "Retail dealer" means any person who is engaged in

20  the business of selling fuel at retail at posted retail

21  prices.

22         (i)  "Retail motor fuel site" means a geographic

23  location in this state where a retail dealer sells or offers

24  for sale motor fuel, diesel fuel, or biofuel to the general

25  public.

26         (3)(a)  Subject to specific appropriation, a retail

27  dealer who sells biofuel through fuel dispensers at retail

28  motor fuel sites is entitled to an incentive payment, which

29  shall be computed as follows:

30         1.  An incentive of 1 cent for each gallon of E10 motor

31  fuel sold through a fuel dispenser.

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 1         2.  An incentive of 3 cents for each gallon of E85 fuel

 2  ethanol sold through a fuel dispenser.

 3         3.  An incentive of 1 cent for each gallon of biodiesel

 4  blended fuel sold through a fuel dispenser.

 5         4.  An incentive of 3 cents for each gallon of

 6  biodiesel sold through a fuel dispenser.

 7         (b)  The incentive may be claimed for biofuel sold on

 8  or after January 1, 2008. Beginning in 2009, each applicant

 9  claiming an incentive under this section must first apply to

10  the department by February 1 of each year for an allocation of

11  the available incentive for the preceding calendar year. The

12  department shall develop an application form. The application

13  form shall, at a minimum, require a sworn affidavit from each

14  retail dealer certifying the following information:

15         1.  The name and principal address of the retail

16  dealer.

17         2.  The address of the retail dealer's retail motor

18  fuel sites from which it sold biofuels during the preceding

19  calendar year.

20         3.  The total gallons of E10 ethanol sold through fuel

21  dispensers.

22         4.  The total gallons of E85 ethanol sold through fuel

23  dispensers.

24         5.  The total gallons of biodiesel blended fuel sold

25  through fuel dispensers.

26         6.  The total gallons of biodiesel sold through fuel

27  dispensers.

28         7.  Any other information deemed necessary by the

29  department to adequately ensure that the incentive allowed

30  under this section is made only to qualified Florida retail

31  dealers.

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 1         (c)  The department shall determine the amount of the

 2  incentive allowed under this section.

 3         (4)  If the amount of incentives applied for each year

 4  exceeds the amount appropriated, the department shall pay to

 5  each applicant a prorated amount based on each applicant's

 6  gallonage of qualified biofuel sold and dispensed which is

 7  eligible for the incentive under this section.

 8         (5)  The department may adopt rules pursuant to ss.

 9  120.536(1) and 120.54 to implement and administer this

10  section, including rules prescribing forms, the documentation

11  needed to substantiate a claim for the incentive, and the

12  specific procedures and guidelines for claiming the incentive.

13         Section 27.  Section 570.959, Florida Statutes, is

14  created to read:

15         570.959  Florida Biofuel Production Incentive

16  Program.--

17         (1)  The purpose of this section is to encourage the

18  development and expansion of facilities that produce biofuels

19  in this state from crops, agricultural waste and residues, and

20  other biomass produced in Florida by providing economic

21  incentives to do so.

22         (2)  As used in this section, the term:

23         (a)  "Biodiesel" means the mono-alkyl esters of

24  long-chain fatty acids derived from plant or animal matter for

25  use as a source of energy and meeting the specifications for

26  biodiesel and biodiesel blended with petroleum products as

27  adopted by the department.

28         (b)  "Biofuel" means ethanol or biodiesel.

29         (c)  "Ethanol" or "fuel ethanol" means an anhydrous

30  denatured alcohol produced by the conversion of carbohydrates

31  

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 1  and meeting the specifications for fuel ethanol adopted by the

 2  department.

 3         (d)  "Florida biofuel production" means production of

 4  biofuel in the state from crops, agricultural waste and

 5  residues, and other biomass produced in Florida.

 6         (3)  In order to be eligible for the incentive provided

 7  in this section, a producer must have registered and have met

 8  the requirements contained in chapter 206.

 9         (4)  An incentive, subject to appropriation, shall be

10  paid to a producer based on Florida biofuel production as

11  follows:

12         (a)  The incentive shall be 5 cents for each gallon of

13  unblended Florida biofuel produced, exclusive of denaturant,

14  during a given calendar year and sold to an unrelated blender

15  of biofuel.

16         (b)  The incentive may be earned for production on or

17  after January 1, 2008. Beginning in 2009, each producer

18  claiming an incentive under this section must first apply to

19  the department by February 1 of each year for an allocation of

20  available incentives. The department shall develop an

21  application form that shall, at a minimum, require a sworn

22  affidavit from each producer certifying the production that

23  forms the basis of the application and certifying that all

24  information contained in the application is true and correct.

25         (c)  The department shall determine whether or not such

26  production is eligible for the incentive under this section.

27         (d)  If the amount of incentives applied for each year

28  exceeds the amount appropriated, the department shall pay to

29  each applicant a prorated amount based on the percentage of

30  biofuel produced that is eligible for the incentive under this

31  section.

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 1         (5)  The department may adopt rules pursuant to ss.

 2  120.536(1) and 120.54 to implement and administer this

 3  section, including rules prescribing forms, the documentation

 4  needed to substantiate a claim for the incentive, and the

 5  specific procedures and guidelines for claiming the incentive.

 6         Section 28.  (1)  The Florida Building Commission shall

 7  convene a workgroup comprised of representatives from the

 8  Florida Energy Commission, the Department of Community

 9  Affairs, the Building Officials Association of Florida, the

10  Florida Energy Office, the Florida Home Builders Association,

11  the Association of Counties, the League of Cities, and other

12  stakeholders to develop a model residential energy efficiency

13  ordinance that provides incentives to meet energy efficiency

14  standards. The commission must report back to the Legislature

15  with a developed ordinance by March 1, 2008.

16         (2)  The Florida Building Commission shall, in

17  consultation with the Florida Energy Commission, the Building

18  Officials Association of Florida, the Florida Energy Office,

19  the Florida Home Builders Association, the Association of

20  Counties, the League of Cities, and other stakeholders, review

21  the Florida Energy Code for Building Construction.

22  Specifically, the commission shall revisit the analysis of

23  cost-effectiveness which serves as the basis for energy

24  efficiency levels for residential buildings, identify

25  cost-effective means to improve energy efficiency in

26  commercial buildings, and compare the code to the

27  International Energy Conservation Code and the American

28  Society of Heating, Air-Conditioning, and Refrigeration

29  Engineers Standards 90.1 and 90.2. The commission shall

30  provide a report with a standard to the Legislature by March

31  

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 1  1, 2008, which may be adopted for the construction of all new

 2  residential, commercial, and government buildings.

 3         (3)  The Florida Building Commission, in consultation

 4  with the Florida Solar Energy Center, the Florida Energy

 5  Commission, the Department of Environmental Protection's

 6  Energy Office, and the Florida Home Builders Association,

 7  shall develop and implement a public awareness campaign that

 8  promotes energy efficiency and the benefits of building green

 9  by January 1, 2008. The campaign shall include enhancement of

10  an existing website from which all citizens can obtain

11  information pertaining to green building practices and

12  calculate anticipated savings from use of those options as

13  well as learn about energy efficiency strategies that may be

14  used in their existing home or when building a home. The

15  campaign shall focus on the benefits of promoting energy

16  efficiency to the purchasers of new homes, the various green

17  building standards available, and the promotion of various

18  energy efficient products through existing trade shows. The

19  campaign shall also include strategies for utilizing print

20  advertising, press releases, and television advertising to

21  promote voluntary compliance with green building practices.

22         Section 29.  (1)  The Legislature declares that there

23  is an important state interest in promoting the construction

24  of energy efficient and sustainable buildings. Government

25  leadership is vital to demonstrate the state's commitment to

26  energy conservation, saving taxpayers money, and raising

27  public awareness of energy-rating systems.

28         (2)  All county, municipal, and public community

29  college buildings shall be constructed to meet the United

30  States Green Building Council (USGBC) Leadership in Energy and

31  Environmental Design (LEED) rating system, Green Building

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 1  Initiative's Green Globes rating system, or a nationally

 2  recognized, high-performance green building rating system as

 3  approved by the Department of Management Services. This

 4  section shall apply to all county, municipal, and public

 5  community college buildings the architectural plans for which

 6  are started after July 1, 2008.

 7         Section 30.  School district biodiesel usage.--

 8         (1)  By January 1, 2008, a minimum of 20 percent of

 9  total diesel fuel purchases for use by school districts shall

10  be biodiesel, subject to availability.

11         (2)  If a school district contracts with another

12  government entity or private entity to provide transportation

13  services for any of its pupils, the biodiesel blend fuel

14  requirement established pursuant to subsection (1) shall be

15  part of that contract. However, this requirement shall apply

16  only to contracts entered into on or after July 1, 2007.

17         Section 31.  (1)  The Legislature recognizes the need

18  for expanded collaboration between the public and private

19  sectors and increased public/private joint ventures in the

20  areas of energy research, alternative fuel production, space

21  exploration, and technological advances in the energy and

22  aerospace industries.

23         (2)  Subject to appropriation, there is created within

24  the Executive Office of the Governor the Florida Energy,

25  Aerospace, and Technology Fund (F.E.A.T.) to encourage a state

26  partnership with the Federal Government and the private sector

27  to identify business and investment opportunities and target

28  performance goals for those investments in the areas of

29  alternative energy development and production infrastructure;

30  biofuel, wind power, and solar energy technology development

31  and applications; ethanol production and systems for

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 1  conversion and use of ethanol fuels; cryogenics and

 2  hydrogen-based technology applications, storage, and

 3  conversion systems; hybrid engine power systems conversion

 4  technologies and production facilities; aerospace industry

 5  expansion or development opportunities; aerospace facility

 6  modifications and upgrades; build outs; new spaceport, range,

 7  and ground support infrastructure; new aerospace facilities

 8  and laboratories; new simulation, communications, and command

 9  and control systems; and other aerospace manufacturing and

10  maintenance support infrastructure.

11         (3)  A complete and detailed report shall be provided

12  to the Governor, the President of the Senate, and the Speaker

13  of the House of Representatives, setting forth the following:

14         (a)  An accounting of all state funds committed and

15  invested by the fund;

16         (b)  A qualitative and quantitative assessment of each

17  fund investment against the investment performance goals

18  established for investment, as well as an assessment of

19  overall fund performance against investment objectives

20  established for the fund overall; and

21         (c)  An evaluation of all activities of the fund and

22  recommendations for changes.

23         Section 32.  Research and Demonstration Cellulosic

24  Ethanol Plant.--

25         (1)  CONSTRUCTION; STANDARDS.--There shall be

26  constructed a multifaceted Research and Demonstration

27  Cellulosic Ethanol Plant designed to conduct research and to

28  demonstrate and advance the commercialization of

29  cellulose-to-ethanol technology, including technology licensed

30  from the University of Florida, and to facilitate further

31  

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 1  research and testing of multiple cellulosic feedstocks in

 2  Florida.

 3         (a)  This plant, referred to in this section as the

 4  facility, shall be used to convert the initially treated

 5  material through to the final ethanol product.

 6         (b)  To save in capital costs, this facility shall be

 7  situated near an industrial site with infrastructure already

 8  developed, thus avoiding or reducing significant capital costs

 9  in waste treatment and roads. This site shall be served by a

10  range of suppliers and transportation companies and be in good

11  proximity to gasoline and ethanol blending facilities on

12  either coast of Florida. This industrial site shall have the

13  capacity to provide steam and electric power; waste treatment;

14  and a steady stream of feedstocks, including, but not limited

15  to, bagasse, woody biomass, and cane field residues to allow a

16  commercial scale plant to operate year-round.

17         (c)  The facility shall also be located near

18  pre-existing on-site technical support staff and other

19  resources for electrical, mechanical, and instrumentation

20  services. In addition, this facility shall have access to

21  pre-existing on-site laboratory facilities and scientific

22  personnel and shall include the critical aspects of tying in

23  with existing facilities and meeting with construction codes

24  and permit requirements.

25         (d)  The facility, of which the University of Florida

26  shall act as owner and proprietor, shall include a permanent

27  research and development laboratory operated as a satellite

28  facility of the Institute of Food and Agriculture Sciences at

29  the University of Florida.

30         (e)  There shall be a scientific and technical advisory

31  panel to advise on the technology to be applied.

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 1         (f)  Ownership of all patents, copyrights, trademarks,

 2  licenses, and rights or interests thereunder or therein shall

 3  vest in the state. The university, pursuant to s. 1004.23,

 4  shall have full right of use and full right to retain the

 5  revenues derived therefrom.

 6         (2)  TECHNOLOGY AND INFORMATION TRANSFER TO

 7  AGRICULTURAL USERS.--

 8         (a)  The Senior Vice President of the Institute of Food

 9  and Agriculture Sciences (IFAS) at the University of Florida

10  shall ensure that applicable, nonproprietary research results

11  and technologies from the plant authorized under this

12  initiative are adapted, made available, and disseminated

13  through IFAS's respective services, as appropriate.

14         (b)  Not later than 2 years after the date of the

15  enactment of this act, the Senior Vice President of the

16  Institute of Food and Agriculture Sciences at the University

17  of Florida shall submit to the Legislature a report on the

18  activities conducted by IFAS's services under this subsection.

19         Section 33.  (1)  The Florida Energy Commission shall

20  conduct a study in conjunction with the Florida Public Service

21  Commission and the Department of Agriculture and Consumer

22  Services to recommend an appropriate Renewable Portfolio

23  Standard for the State of Florida.

24         (2)  The study shall include current and future

25  availability of renewable fuels, incentives to attract large

26  scale renewable energy development, proposed changes to

27  current regulatory and market practices to encourage renewable

28  energy development, the impact on utility costs and rates,

29  environmental benefits of a Renewable Portfolio Standard, and

30  economic development associated with Florida renewable energy.

31  

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 1         (3)  The Florida Energy Commission shall hold public

 2  hearings on these and other related issues and submit a report

 3  containing specific recommendations to the Legislature no

 4  later than January 31, 2008.

 5         Section 34.  For the 2007-2008 fiscal year, the sum of

 6  $65,763 is appropriated from the General Revenue Fund to the

 7  Department of Revenue for the purpose of administering the

 8  Energy Efficient Sales Tax Holiday.

 9         Section 35.  For the 2007-2008 fiscal year, the sum of

10  $20 million in nonrecurring funds is appropriated from the

11  General Revenue Fund to the University of Florida's Institute

12  of Food and Agriculture Sciences for the purpose of

13  establishing the Research and Demonstration Cellulosic Ethanol

14  Plant.

15         Section 36.  For the 2007-2008 fiscal year, the sum of

16  $40 million in nonrecurring funds is appropriated from the

17  General Revenue Fund to the Department of Environmental

18  Protection for the purpose of funding the Renewable Energy

19  Technologies Grants Program authorized in s. 377.804, Florida

20  Statutes.

21         Section 37.  For the 2007-2008 fiscal year, the sum of

22  $2.5 million in nonrecurring funds is appropriated from the

23  General Revenue Fund to the Department of Environmental

24  Protection for the purpose of funding commercial and consumer

25  solar rebates authorized in s. 377.806, Florida Statutes.

26         Section 38.  For the 2007-2008 fiscal year, the sum of

27  $10 million in nonrecurring funds is appropriated from the

28  General Revenue Fund to the Department of Agriculture and

29  Consumer Services for the purpose of funding the Farm-to-Fuel

30  Grants program authorized in s. 570.957, Florida Statutes.

31  

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 1         Section 39.  For the 2007-2008 fiscal year, the sum of

 2  $12.6 million in nonrecurring funds is appropriated from the

 3  General Revenue Fund to the Administrative Trust Fund of the

 4  Department of Revenue for the purpose of paying sales tax

 5  refunds as authorized in s. 212.086, Florida Statutes.

 6         Section 40.  For the 2007-2008 fiscal year, the sum of

 7  $100,000 in nonrecurring funds is appropriated from the

 8  General Revenue Fund to the Department of Community Affairs

 9  for the purposes of convening a workgroup to develop a model

10  residential energy efficient ordinance and reviewing the

11  cost-effectiveness of energy efficiency measures in the

12  construction of certain buildings.

13         Section 41.  For the 2007-2008 fiscal year, the sum of

14  $334,237 in nonrecurring funds is appropriated from the

15  General Revenue Fund to the Department of Community Affairs

16  for the purposes of developing and implementing a public

17  awareness campaign that promotes energy efficiency and the

18  benefits of building green.

19         Section 42.  This act shall take effect July 1, 2007.

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2666

 3                                 

 4  The committee substitute rewrites the bill to:

 5  Provide that the renewable energy source exemption for
    improved real property is for the amount of the cost of the
 6  renewable energy source device.

 7  Provide that the sales tax exemption for equipment and
    machinery used for ethanol is for ethanol produced by the
 8  conversion of carbohydrates. Clarifies that only one purchase
    of an eligible item is subject to a refund.
 9  
    Provide for a sales tax refund on the purchase of certain
10  qualified energy efficient motors vehicles.

11  Allow for the transfer of the corporate income tax credit for
    renewable energy technologies investment.
12  
    Provide that buildings constructed and financed by the state
13  must be designed to meet certain "green" standards.

14  Provide that no state agency may construct a facility without
    having secured from the Department of Management Services
15  (DMS) an evaluation of life-cycle costs based on sustainable
    building ratings.
16  
    Extend the repayment period for the financing of certain
17  energy conservation measures.

18  Allow the DMS to conduct an inventory and determine the
    percentage of motor vehicles purchased with state funds which
19  are flexible fuel vehicles or hybrid vehicles in current use.
    Requires DMS to purchase such vehicles to increase the
20  percentage of such vehicles in the state's inventory.

21  Provide new provisions relating to the determination of need
    and cost recovery for an integrated gasification combined
22  cycle power plant.

23  Designate October as "Energy Efficiency and Conservation
    Month."
24  
    Clarify that the payment of certain solar energy system
25  rebates may be made only to the final purchaser of an eligible
    system. Limits the rebates to one per type of system per
26  resident per state fiscal year.

27  Provide for two energy efficiency and conservation weeks
    during which the sales tax may not be collected on certain new
28  energy-efficient products. One week is in October and the
    other is in March.
29  
    Increase the membership of the Florida Energy Commission to
30  allow the Governor to appoint four members. Provides that
    certain members are ex-officio members.
31  
    Require the Department of Environmental Protection to develop
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    Florida Senate - 2007                           CS for SB 2666
    592-2412-07




 1  a greenhouse gas inventory.

 2  Modify the Guaranteed Energy Performance Savings Contracting
    Act to include allowable cost avoidance. Requires review of
 3  the contracts by the Office of the Chief Financial Officer.

 4  Create the Farm-to-Fuel Advisory Council within the Department
    of Agriculture and Consumer Services.
 5  
    Create a Farm-to-Fuel Grants Program.
 6  
    Create a Biofuel Retail Sales Incentive Program. Create a
 7  Biofuel Production Incentive Program.

 8  Require the Florida Building Commission to convene a workgroup
    to develop a model residential energy efficiency ordinance.
 9  
    Require the Florida Building Commission to revisit the
10  analysis of cost-effective means to improve energy efficiency
    in commercial buildings. The commission must report with a
11  standard which may be adopted for the construction of all new
    residential, commercial, and government buildings to the
12  Legislature.

13  Require the Florida Building Commission to develop and
    implement a public awareness campaign that promotes energy
14  efficiency and the benefits of building green.

15  Provide that all county, municipal, and public community
    college buildings shall be constructed to meed certain green
16  building standards.

17  Provide that a minimum of 20 percent of the total diesel fuel
    purchased for use by school districts must be biodiesel,
18  subject to availability.

19  Subject to appropriation, create within the Executive Office
    of the Governor the Energy Aerospace, and Technology Fund to
20  encourage a state partnership with the Federal Government and
    the private sector to identify business and investment
21  opportunities and target performance goals for those
    investments in the areas of alternative energy development and
22  production infrastructure.

23  Provide for the construction of a multifaceted Research and
    Demonstration Cellulosic Ethanol Plant.
24  
    Require the Florida Energy Commission to conduct a study in
25  conjunction with the Public Service Commission and the
    Department of Agriculture and Consumer Services to recommend
26  an appropriate Renewable Portfolio Standard for the state of
    Florida.
27  
    Provide appropriations.
28  

29  

30  

31  

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