Senate Bill sb0996c1

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    Florida Senate - 2007                            CS for SB 996

    By the Committee on Communications and Public Utilities; and
    Senators Bennett, Lynn, Fasano and Atwater




    579-2288-07

  1                      A bill to be entitled

  2         An act relating to energy; creating s.

  3         288.10894, F.S.; creating the Florida

  4         Alternative Energy Development Corporation;

  5         providing legislative findings; providing

  6         definitions; requiring that the corporation

  7         comply with public-meetings and public-records

  8         laws; providing for the organization, purpose,

  9         and duties of the corporation; providing for

10         the membership of the board of directors of the

11         corporation; requiring the disclosure of

12         financial interests by board members; requiring

13         an annual report; creating s. 288.10895, F.S.;

14         creating the Alternative Energy Incentive

15         Program for the purpose of encouraging economic

16         development and research; providing

17         definitions; providing for the program to be

18         operated by the Florida Alternative Energy

19         Development Corporation; providing the

20         qualification criteria for a business to

21         receive an award under the program; providing a

22         grant-application process and requirements for

23         such application; providing for an evaluation

24         and award process; requiring that the

25         corporation validate the performance of

26         projects funded under the program; amending s.

27         377.703, F.S.; deleting provisions requiring

28         that the Department of Environmental Protection

29         conduct energy research and development, plan

30         for the development of renewable energy

31         resources, promote the development and use of

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    Florida Senate - 2007                            CS for SB 996
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 1         renewable energy resources, and create a

 2         database of all energy programs in the state;

 3         repealing s. 377.901, F.S., relating to the

 4         creation and operations of the Florida Energy

 5         Commission; amending s. 212.08, F.S.;

 6         increasing the limitation on a tax exemption

 7         for materials used in the distribution of

 8         biodiesel and ethanol; creating an annual tax

 9         holiday for energy-efficient products; defining

10         the term "energy-efficient product";

11         authorizing the Department of Revenue to adopt

12         rules; requiring the Florida Alternative Energy

13         Development Corporation rather than the

14         Department of Environmental Protection to

15         certify eligibility for the sales tax exemption

16         for equipment, technology, and other materials

17         for renewable energy; amending s. 213.053,

18         F.S.; providing for the Department of Revenue

19         to provide information to the Florida

20         Alternative Energy Development Corporation

21         rather than the Department of Environmental

22         Protection for purposes of administering the

23         sales tax exemption and the corporate income

24         tax credit; amending s. 220.192, F.S.;

25         requiring the Florida Alternative Energy

26         Development Corporation rather than the

27         Department of Environmental Protection to

28         determine eligibility for the corporate income

29         tax credits for investments in renewable energy

30         technologies; amending s. 377.803, F.S.;

31         defining the term "corporation" for purposes of

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    Florida Senate - 2007                            CS for SB 996
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 1         the Florida Renewable Energy Technologies and

 2         Energy Efficiency Act; amending s. 377.804,

 3         F.S.; providing for the Florida Alternative

 4         Energy Development Corporation rather than the

 5         Department of Environmental Protection to

 6         administer the Renewable Energy Technologies

 7         Grants Program; amending s. 377.806, F.S.;

 8         requiring the Florida Alternative Energy

 9         Development Corporation rather than the

10         Department of Environmental Protection to

11         administer the Solar Energy Incentives Program;

12         creating s. 366.915, F.S.; creating the Florida

13         Renewable Portfolio Standard Act; providing

14         legislative findings; providing definitions;

15         requiring public utilities to sell a minimum

16         amount of renewable energy; authorizing the

17         Public Service Commission to adopt rules;

18         amending s. 366.91, F.S.; redefining the term

19         "renewable energy"; amending s. 366.02, F.S.;

20         defining the term "net-metering program";

21         creating s. 366.925, F.S.; providing a short

22         title; directing the Public Service Commission

23         to develop rules requiring all electric

24         utilities to develop net-metering programs;

25         providing for a customer to receive credit for

26         electricity generated by renewable energy

27         systems owned by the customer; directing the

28         commission to adopt rules setting the standards

29         that renewable energy systems must meet in

30         order for customers to qualify for the program;

31         requiring every wholesaler of diesel fuel to a

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    Florida Senate - 2007                            CS for SB 996
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 1         marina within the state to offer biodiesel for

 2         sale; creating s. 403.0874, F.S.; requiring the

 3         Department of Environmental Protection to

 4         conduct an inventory of greenhouse gas

 5         emissions; amending s. 366.04, F.S.;

 6         authorizing the Public Service Commission to

 7         review and approve sales and transfers of

 8         public utility assets, including in a merger;

 9         authorizing the commission to adopt rules;

10         creating s. 212.086, F.S.; providing a

11         financial incentive for the purchase of an

12         alternative motor vehicle; providing that any

13         person who purchases an alternative motor

14         vehicle from a sales tax dealer is eligible for

15         a refund of the sales tax paid; requiring that

16         the alternative motor vehicle be certified

17         under the Internal Revenue Code of 1986, as

18         amended, as a new qualified hybrid motor

19         vehicle, new qualified alternative fuel motor

20         vehicle, new qualified fuel cell motor vehicle,

21         or new advanced lean-burn technology motor

22         vehicle; requiring that an application for

23         refund be filed with the Department of Revenue;

24         providing that the total dollar amount of

25         refunds is limited to the total amount of

26         appropriations in any fiscal year; authorizing

27         a request for a refund to be held for payment

28         in the following fiscal year under certain

29         circumstances; requiring the department to

30         adopt rules; providing for future repeal of the

31         program; amending s. 255.252, F.S.; requiring

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    Florida Senate - 2007                            CS for SB 996
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 1         an inventory of state-owned buildings and an

 2         energy efficiency project schedule for

 3         guaranteed energy-performance savings contract

 4         improvements; amending s. 287.063, F.S.;

 5         requiring that the term of payment for

 6         consolidated equipment finance contracts may

 7         not extend beyond the anticipated useful life

 8         of the equipment financed; deleting the

 9         requirement that the Chief Financial Officer

10         establish criteria that prohibits a state

11         agency from obligating an annualized amount of

12         payments for certain deferred payment

13         purchases; amending s. 287.064, F.S.; extending

14         the period of time allowed for repayment of

15         funds under the guaranteed energy-performance

16         savings contract; amending s. 489.145, F.S.;

17         clarifying certain definitions; providing

18         additional requirements for a state agency to

19         enter into a guaranteed energy-performance

20         savings contract; providing for financing of

21         contracts related to guaranteed

22         energy-performance savings; requiring the

23         Department of Financial Services to review

24         proposals to ensure that the most effective

25         financing is used; requiring the Office of the

26         Chief Financial Officer to develop model

27         contractual and related documents; requiring

28         that contracts or leases submitted by a state

29         agency to the Office of Chief Financial Officer

30         meet certain criteria; providing

31         appropriations; providing effective dates.

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    Florida Senate - 2007                            CS for SB 996
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 1  Be It Enacted by the Legislature of the State of Florida:

 2  

 3         Section 1.  Effective upon this act becoming a law,

 4  section 288.10894, Florida Statutes, is created to read:

 5         288.10894  Florida Alternative Energy Development

 6  Corporation; findings; creation; membership; organization;

 7  purpose; duties; powers.--

 8         (1)  The Legislature finds that it is in the public

 9  interest to promote alternative energy technologies in this

10  state, including alternative fuels and technologies for

11  electric power plants and motor vehicles, energy conservation,

12  distributed generation, advanced transmission methods, and

13  pollution and greenhouse gas control. Both Florida and the

14  United States in general are overly dependent on foreign oil

15  to meet the energy needs of buildings and motor vehicles.

16  Alternative energy and energy conservation technologies have

17  the potential to decrease this dependency, minimize volatility

18  of fuel cost, and improve environmental conditions. In-state

19  research, development, deployment, and use of these

20  technologies can make the state a leader in new and innovative

21  technologies and encourage investment and economic development

22  in this state.

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

24         (a)  "Corporation" means the Florida Alternative Energy

25  Development Corporation.

26         (b)  "Alternative energy" means energy technologies

27  that are undeveloped or less than established in current

28  markets. The term includes, but is not limited to: biomass;

29  agricultural products and byproducts; municipal solid waste,

30  including landfill injection, landfill mining, and landfill

31  gas; solar thermal and solar photovoltaic energy; geothermal;

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    Florida Senate - 2007                            CS for SB 996
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 1  ocean energy, including wave or thermal; hydrogen fuel; fuel

 2  cells; energy conservation, including building, equipment, and

 3  appliance efficiency technologies; enhancements to the

 4  transmission of electricity, including advanced transmission

 5  lines; distributed generation; ethanol, biodiesel, and similar

 6  synthetic fuels; and technologies relating to impacts of

 7  pollutants and greenhouse gases.

 8         (3)(a)  There is created a public corporation and a

 9  public body corporate and politic, to be known as the "Florida

10  Alternative Energy Development Corporation." It is declared to

11  be the intent of and constitutional construction by the

12  Legislature that the Florida Alternative Energy Development

13  Corporation constitutes an entrepreneurial public corporation

14  organized to provide and promote the public welfare by

15  administering the governmental function of promoting the

16  development of alternative energy in Florida and that the

17  corporation is not a department of the executive branch of

18  state government within the scope and meaning of s. 6, Art. IV

19  of the State Constitution, and is not functionally located

20  within any state agency or department.

21         (b)  The corporation is constituted as a public

22  instrumentality, and the exercise by the corporation of the

23  power conferred by this act is considered to be the

24  performance of an essential public function. The corporation

25  shall constitute an agency for the purposes of s. 120.52. The

26  corporation is subject to chapter 119, subject to exceptions

27  applicable to the corporation, and to the provisions of

28  chapter 286; however, the corporation shall be entitled to

29  provide notice of internal review committee meetings for

30  competitive proposals or procurement to applicants by mail or

31  facsimile rather than by means of publication. The corporation

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    Florida Senate - 2007                            CS for SB 996
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 1  is not governed by chapter 607, but by the provisions of this

 2  section. If for any reason the establishment of the

 3  corporation is deemed in violation of law, such provision is

 4  severable and the remainder of this act remains in full force

 5  and effect.

 6         (c)  The corporation is a corporation primarily acting

 7  as an instrumentality of the state, within the meaning of s.

 8  768.28.

 9         (4)  The corporation is the principal organization in

10  the state for promotion of alternative energy technology. Its

11  goals are to minimize dependence on foreign oil, with the

12  maximum overall benefit to the State of Florida, and, where

13  possible, to minimize the impact of greenhouse gases. It is to

14  accomplish these goals by consolidating in-state resources and

15  activities into a unified forum to better coordinate,

16  facilitate, and fund research, development, deployment, and

17  use of alternative energy technologies. To make better use of

18  limited resources, the corporation should focus on projects

19  having near-term, in-state benefits. Additionally, in making

20  decisions concerning research, development, or deployment

21  projects, and in awarding grants and other outlays, the

22  corporation should determine which of the following elements

23  of product and market development to focus upon in order to

24  achieve the greatest benefit with respect to research and

25  manufacturing, in the wholesale and retail markets, and for

26  consumers. More specifically, the corporation shall:

27         (a)  Bring together existing resources by:

28         1.  Assisting in the integration of state-government

29  energy programs.

30         2.  Developing an information exchange system,

31  including:

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    Florida Senate - 2007                            CS for SB 996
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 1         a.  Creating a computer database, accessible by any

 2  interested person, by gathering and indexing all information

 3  concerning activities in this state related to programs of

 4  alternative energy technology research, development, and

 5  deployment in universities, at all levels of government

 6  agencies, and in private industry. The database must include a

 7  current index and profile of all research activities,

 8  identified by alternative energy technology area, including a

 9  summary of the project, the amount and sources of funding,

10  anticipated completion dates, or, in case of completed

11  research, the conclusions, recommendations, and applicability

12  of research to state government and private-sector functions.

13         b.  Developing an interactive electronic information

14  point where interested persons can find information and

15  connect with other interested persons.

16         c.  Holding conferences for the purpose of providing

17  additional information exchange and educating the public.

18         (b)  Administer state-funded grants and capital outlay

19  programs, including developing an application program to

20  determine awards of those grants and outlays, and assist

21  interested persons in obtaining additional funding for

22  alternative energy technology projects.

23         (c)  Explore the problems faced by those developing

24  technology in Florida and determine where the problems lie,

25  i.e., in research, development, obtaining start-up capital and

26  financing, or finding buyers for the technology, and then

27  assist in resolving these problems.

28         (d)  In cooperation with Enterprise Florida, Inc.,

29  promote the state as a location for businesses having

30  operations related to alternative energy technologies.

31  

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    Florida Senate - 2007                            CS for SB 996
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 1         (e)  Develop recommendations for legislation to

 2  establish a state energy policy. The corporation shall

 3  continually review the state energy policy and recommend to

 4  the Legislature any additional necessary changes or

 5  improvements. The recommendations of the corporation shall be

 6  based on the guiding principles of reliability, efficiency,

 7  affordability, and diversity, and more specifically on the

 8  following principles:

 9         1.  The state should have a reliable electric supply

10  with adequate reserves.

11         2.  The transmission and delivery of electricity should

12  be reliable.

13         3.  The generation, transmission, and delivery of

14  electricity should be accomplished with the least detriment to

15  the environment and public health.

16         4.  The generation, transmission, and delivery of

17  electricity should be accomplished compatibly with the goals

18  of growth management.

19         5.  Electricity generation, transmission, and delivery

20  facilities should be reasonably secure from damage, taking all

21  factors into consideration, and recovery from damage should be

22  prompt.

23         6.  Electric rates should be affordable as to base

24  rates and all recovery-clause additions, with sufficient

25  incentives for utilities to achieve this goal.

26         7.  The state should have a reliable supply of motor

27  vehicle fuels under normal circumstances and during hurricanes

28  and other emergency situations.

29         8.  In-state research, development, and deployment of

30  alternative energy technologies and alternative motor vehicle

31  fuels should be encouraged.

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    Florida Senate - 2007                            CS for SB 996
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 1         9.  When possible, the resources of the state should be

 2  used in achieving the goals enumerated in this subsection.

 3         10.  Consumers of energy should be encouraged and given

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

 5  

 6  It is the specific intent of the Legislature that this section

 7  does not in any way change the powers, duties, and

 8  responsibilities of the Public Service Commission or the

 9  powers, duties, and responsibilities assigned by the Florida

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

11         (5)  The corporation shall establish one or more

12  corporate offices, at least one of which must be located in

13  Leon County.

14         (6)  The corporation shall be governed by a board of

15  directors consisting of the following members:

16         (a)  The Governor or the Governor's designee.

17         (b)  A member appointed by the President of the Senate.

18         (c)  A member appointed by the Speaker of the House of

19  Representatives.

20         (d)  The president of Enterprise Florida, Inc., or his

21  or her designee.

22         (e)  A representative from the State Board of

23  Education, selected by the members of that board.

24         (f)  The Commissioner of Agriculture or his or her

25  designee.

26         (g)  The chairman of the Florida Public Service

27  Commission or his or her designee.

28         (h)  For one initial term, the current chairman of the

29  Florida Energy Commission and one other member of that

30  commission to be selected by the commission members.

31  

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    Florida Senate - 2007                            CS for SB 996
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 1         (i)  Any additional board members selected by a

 2  consensus of all existing members of the governing board to

 3  assist the corporation in carrying out its functions and

 4  duties under this section.

 5         (7)  A member's term of office may not exceed 4 years,

 6  and a member may not serve more than two consecutive terms.

 7         (8)  The Governor shall serve as chairperson of the

 8  board. The members of the board of directors must select a

 9  vice chairperson biennially, upon selection of any new

10  members. The corporation's president shall keep a record of

11  the proceedings of the board of directors, act as custodian of

12  all books, documents, and papers filed with the board of

13  directors, and keep the minutes of the board of directors.

14         (9)  The board of directors must meet at least once

15  each year, upon the call of the chairperson, at the request of

16  the vice chairperson, or at the request of a majority of the

17  membership. A majority of the total number of all directors

18  constitutes a quorum. The board may take official action by a

19  majority vote of the members present at any meeting at which a

20  quorum is present.

21         (10)  Members of the board of directors serve without

22  compensation, but members, the president, and staff may be

23  reimbursed for all reasonable, necessary, and actual expenses,

24  as determined by the board.

25         (11)  Each member of the board of directors who is not

26  otherwise required to file a financial disclosure pursuant to

27  s. 8, Art. II of the State Constitution or s. 112.3144 must

28  file a disclosure of financial interests pursuant to s.

29  112.3145.

30         (12)  The corporation's board of directors must appoint

31  a corporate president and establish and adjust the president's

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    Florida Senate - 2007                            CS for SB 996
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 1  compensation. The president is the chief administrative and

 2  operational officer of the board of directors and of the

 3  corporation, and shall direct and supervise other employees in

 4  accomplishing the goals and tasks set forth in this section.

 5         (13)  State officers, agencies, departments, boards,

 6  and commissions may provide such services to the corporation

 7  within each entity's respective functions as may be requested

 8  by the corporation. Upon request of the corporation, the

 9  Governor may temporarily transfer to the corporation any

10  officers or employees as are considered necessary from time to

11  time in order to assist the corporation in carrying out its

12  functions and duties under this section. Officers and

13  employees so transferred do not lose their career service,

14  select exempt, or senior management status or rights.

15         (14)  The corporation shall receive funding from the

16  state through the Florida Alternative Energy Development

17  Corporation Trust Fund pursuant to general law. The board of

18  directors, officers, and employees of the corporation are

19  responsible for the prudent use of all public and private

20  funds within the corporation's control and must ensure that

21  the use of such funds is in accordance with applicable laws,

22  bylaws, and contractual requirements. In performing all of its

23  functions, the corporation shall take all possible steps to

24  ensure the maximum benefit to the state. As part of its

25  duties, the corporation shall establish strategic priorities,

26  consistent with this section, to guide funding and resource

27  allocations and ensure the best use of available resources.

28         (15)  By December 31 each year, the corporation must

29  submit an annual report to the Governor, the President of the

30  Senate, and the Speaker of the House of Representatives

31  containing:

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    Florida Senate - 2007                            CS for SB 996
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 1         (a)  A detailed description of the corporation's

 2  activities and accomplishments for the year.

 3         (b)  A certified audit by an independent public

 4  accountant of resources and expenditures prepared by an

 5  independent certified public accountant.

 6         (c)  A statement of the corporation's strategic

 7  priorities and an explanation of their use in guiding resource

 8  allocations.

 9         Section 2.  Effective upon this act becoming a law,

10  section 288.10895, Florida Statutes, is created to read:

11         288.10895  Alternative Energy Incentive Program.--

12         (1)  PROGRAM CREATED.--The Alternative Energy Incentive

13  Program is created and shall be operated by the Florida

14  Alternative Energy Development Corporation. The program shall

15  encourage economic development and research and development in

16  the state which will commercialize alternative energy

17  innovations and develop new alternative energy manufacturing,

18  blending, power generation, and distribution facilities.

19         (2)  DEFINITIONS.--As used in this section, the term:

20         (a)  "Alternative energy" means electrical, mechanical,

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

22  of the following fuels or energy sources: ethanol, biodiesel,

23  biomass, biogas, waste heat, fuel cells, hydrogen, solar,

24  hydro, wind, or geothermal.

25         (b)  "Average private-sector wage" means the statewide

26  average wage in the private sector or the average of all

27  private-sector wages in the county or in the standard

28  metropolitan area in which the project is located as

29  determined by the Agency for Workforce Innovation.

30         (c)  "Corporation" means the Florida Alternative Energy

31  Development Corporation.

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    Florida Senate - 2007                            CS for SB 996
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 1         (d)  "Jobs" means full-time equivalent positions, as

 2  that term is consistent with terms used by the Agency for

 3  Workforce Innovation and the United States Department of Labor

 4  for purposes of unemployment compensation tax administration

 5  and employment estimation, resulting directly from a project

 6  in this state. The term does not include temporary

 7  construction jobs.

 8         (e)  "Match" or "matching funds" means actual cash

 9  outlays contributed, including, but not limited to, cash

10  outlays for wages, rental expenses, travel expenses,

11  unrecovered indirect costs, and purchases of material and

12  supplies as a direct benefit to the project, or noncash

13  contributions necessary and reasonable for proper and

14  efficient accomplishment of project objectives. The value of

15  noncash contributions shall be established using the following

16  guidelines:

17         1.  Rates for donated or volunteer services of any

18  person must be consistent with their regular rate of pay, or

19  the rate of pay of those paid for similar work at a similar

20  level of experience in the labor market, including the value

21  of fringe benefits.

22         2.  The value of donated expendable property, such as

23  office supplies or workshop supplies, may not exceed the fair

24  market value of the property.

25         3.  The value of donated real property, such as land,

26  may not exceed the fair market value of the property.

27         4.  Donated space must be valued at fair rental value

28  of comparable space and facilities in a privately owned

29  building in the same locale.

30         5.  The value of loaned equipment may not exceed its

31  fair rental value.

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 1         6.  Rates for donated travel expense must be valued at

 2  the approved state rate as defined in s. 112.061.

 3         (g)  "President" means the president of the Florida

 4  Alternative Energy Development Corporation.

 5         (3)  ALTERNATIVE ENERGY BUSINESS PROJECT.--

 6         (a)  "Business project" is defined as the location to

 7  or expansion in this state of a business that manufactures,

 8  blends, or distributes alternative energy, generates power for

 9  sale in this state from an alternative energy source, or

10  develops new or expanded infrastructure in this state for the

11  commercialization or distribution of alternative energy.

12         (b)  In order to qualify for consideration under the

13  Alternative Energy Incentive Program, a business project must,

14  at a minimum, establish to the satisfaction of the corporation

15  that:

16         1.  The business project is located in this state;

17         2.  The jobs created by the business project pay an

18  estimated annual average wage that equals at least 130 percent

19  of the average private-sector wage. The average wage

20  requirement may be waived if the corporation determines that

21  the merits of the individual project or the specific

22  circumstances warrant such action;

23         3.  The business project includes matching funds

24  provided by the applicant, the local community, or other

25  available sources. The match requirement may be waived if the

26  corporation determines that the merits of the individual

27  project or the specific circumstances warrant such action; and

28         4.  The business project meets one of the following

29  criteria:

30         a.  Results in the creation of at least 20 direct, new

31  jobs at the business;

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 1         b.  Consists of an activity or product that uses

 2  feedstock or other raw materials grown or produced in this

 3  state; or

 4         c.  Has a cumulative investment of at least $50 million

 5  within a 5-year period.

 6         (4)  ALTERNATIVE ENERGY RESEARCH AND DEVELOPMENT

 7  PROJECT.--

 8         (a)  "Research and development project" is defined as

 9  basic and applied research that is conducted in this state in

10  the sciences or engineering and that relates to the

11  development, manufacturing, blending, or use of new and

12  existing alternative energy technologies. A research and

13  development project does not include market research, routine

14  consumer product testing, sales research, research in the

15  social sciences or psychology, nontechnological activities, or

16  technical services.

17         (b)  In order to qualify for consideration under the

18  Alternative Energy Incentive Program, a research and

19  development project must, at a minimum, establish to the

20  satisfaction of the corporation that:

21         1.  The research and development project will be

22  located in this state;

23         2.  The jobs created by the research and development

24  project will pay an estimated annual average wage that equals

25  at least 130 percent of the average private-sector wage. The

26  average wage requirement may be waived if the corporation

27  determines that the merits of the individual project or the

28  specific circumstances warrant such action;

29         3.  The research and development project includes

30  matching funds provided by the applicant, a public or private

31  university or research institution, the local community, or

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 1  other available sources. The match requirement may be waived

 2  if the corporation determines that the merits of the

 3  individual project or the specific circumstances warrant such

 4  action;

 5         4.  The research and development project includes a

 6  plan for significant collaboration with a higher education

 7  institution in the state; and

 8         5.  The research and development project includes a

 9  plan for the commercialization of the research through direct

10  use by the applicant in this state or the transfer or

11  licensing of new technology to Florida-based businesses that

12  produce alternative energy for use or sale within the state.

13         (5)  APPLICATION REQUIREMENTS.--A business project or

14  research and development project applicant must submit a

15  written application to the corporation before making a

16  decision to locate new operations in this state or expand an

17  existing operation in this state. The application must

18  include, but need not be limited to:

19         (a)  The applicant's federal employer identification

20  number, unemployment account number, state sales tax

21  registration number, or related documentation. If such numbers

22  are not available at the time of application, the numbers must

23  be submitted to the corporation in writing before the

24  disbursement of any payments under this section.

25         (b)  The location in this state at which the business

26  project or the research and development project is located or

27  is to be located.

28         (c)  A description of the type of business activity,

29  product, or research and development undertaken by the

30  applicant, including six-digit North American Industry

31  

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 1  Classification System codes for all activities included in the

 2  project.

 3         (d)  The applicant's projected investment in the

 4  business project or the research and development project.

 5         (e)  The total investment, from all sources, in the

 6  business project or the research and development project.

 7         (f)  The number of net new full-time equivalent jobs in

 8  this state the applicant anticipates having created as of

 9  December 31 of each year in the business project or the

10  research and development project and the average annual wage

11  of such jobs.

12         (g)  The total number of full-time equivalent employees

13  currently employed by the applicant in this state, if

14  applicable.

15         (h)  The anticipated commencement date of the business

16  project or the research and development project.

17         (i)  A detailed explanation of why funding under the

18  Alternative Energy Incentive Program is needed to induce the

19  applicant to expand or locate in the state and whether an

20  award would cause the applicant to locate or expand in this

21  state.

22         (j)  If applicable, an estimate of the proportion of

23  the revenues resulting from the business project or the

24  research and development project which will be generated

25  outside this state.

26         (k)  A recommendation for specific performance criteria

27  the applicant would be expected to achieve in order to receive

28  payments from the fund and penalties or sanctions for failure

29  to meet or maintain performance conditions.

30         (l)  The potential for the business project or the

31  research and development project to stimulate additional

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 1  investment and employment opportunities that equal or exceed

 2  130 percent of the average private-sector wage.

 3         (m)  A description of the extent to which the research

 4  and development project:

 5         1.  Is likely to develop a new, emerging, or evolving

 6  form of alternative energy.

 7         2.  Has or could have a significant collaborative

 8  research and development relationship with one or more

 9  universities or community colleges in this state.

10         3.  Will be used by the applicant within this state or

11  transferred or licensed to Florida-based businesses.

12         (6)  AWARD AMOUNT.--The corporation may negotiate the

13  proposed amount of an award for any applicant meeting the

14  requirements of this section. In negotiating such award, the

15  corporation shall consider the amount of the incentive needed

16  to cause the applicant to locate or expand in this state in

17  conjunction with other relevant effect and cost information

18  and analysis as described in this section.

19         (7)  RECOMMENDATION.--After completing the evaluation,

20  the president shall recommend to the Governor the approval or

21  disapproval of an award. In recommending approval of an award,

22  the president shall include proposed performance conditions

23  that the applicant must meet in order to obtain incentive

24  funds and any other conditions that must be met before the

25  receipt of any incentive funds. The Governor shall consult

26  with the President of the Senate and the Speaker of the House

27  of Representatives before giving approval for an award. Upon

28  approval of an award, the Executive Office of the Governor

29  shall release the funds pursuant to the legislative

30  consultation and review requirements set forth in s. 216.177.

31  

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 1         (8)  CERTIFICATION.--Upon approval by the Governor and

 2  release of the funds as set forth in subsection (7), the

 3  president shall issue a letter certifying the applicant as

 4  qualified for an award. The corporation and the applicant

 5  shall enter into an agreement that sets forth the conditions

 6  for payment of funds under the Alternative Energy Incentive

 7  Program, including, but not limited to, the total amount of

 8  funds awarded, the performance conditions that must be met in

 9  order to obtain the award or portions of the award, the

10  methodology for validating performance, the schedule of

11  payments, and sanctions for failure to meet performance

12  conditions, including any clawback provisions.

13         (9)  VALIDATION.--The corporation shall validate the

14  performance of business projects and research and development

15  projects that have received an award under the Alternative

16  Energy Incentive Program. At the conclusion of an award

17  agreement, or its earlier termination, the corporation shall,

18  within 90 days, report the results of the award under the

19  Alternative Energy Incentive Program to the Governor, the

20  President of the Senate, and the Speaker of the House of

21  Representatives.

22         Section 3.  Effective upon this act becoming a law,

23  subsection (3) of section 377.703, Florida Statutes, is

24  amended to read:

25         377.703  Additional functions of the Department of

26  Environmental Protection; energy emergency contingency plan;

27  federal and state conservation programs.--

28         (3)  DEPARTMENT OF ENVIRONMENTAL PROTECTION;

29  DUTIES.--The Department of Environmental Protection shall, in

30  addition to assuming the duties and responsibilities provided

31  

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 1  by ss. 20.255 and 377.701, perform the following functions

 2  consistent with the development of a state energy policy:

 3         (a)  The department shall assume the responsibility for

 4  development of an energy emergency contingency plan to respond

 5  to serious shortages of primary and secondary energy sources.

 6  Upon a finding by the Governor, implementation of any

 7  emergency program shall be upon order of the Governor that a

 8  particular kind or type of fuel is, or that the occurrence of

 9  an event which is reasonably expected within 30 days will make

10  the fuel, in short supply. The department shall then respond

11  by instituting the appropriate measures of the contingency

12  plan to meet the given emergency or energy shortage. The

13  Governor may utilize the provisions of s. 252.36(5) to carry

14  out any emergency actions required by a serious shortage of

15  energy sources.

16         (b)  The department shall constitute the responsible

17  state agency for performing or coordinating the functions of

18  any federal energy programs delegated to the state, including

19  energy supply, demand, conservation, or allocation.

20         (c)  The department shall analyze present and proposed

21  federal energy programs and make recommendations regarding

22  those programs to the Governor.

23         (d)  The department shall coordinate efforts to seek

24  federal support or other support for state energy conservation

25  activities, including energy conservation, research, or

26  development, and shall be the state agency responsible for the

27  coordination of multiagency energy conservation programs and

28  plans.

29         (e)  The department shall analyze energy data collected

30  and prepare long-range forecasts of energy supply and demand

31  in coordination with the Florida Public Service Commission,

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 1  which shall have responsibility for electricity and natural

 2  gas forecasts. To this end, the forecasts shall contain:

 3         1.  An analysis of the relationship of state economic

 4  growth and development to energy supply and demand, including

 5  the constraints to economic growth resulting from energy

 6  supply constraints.

 7         2.  Plans for the development of renewable energy

 8  resources and reduction in dependence on depletable energy

 9  resources, particularly oil and natural gas, and an analysis

10  of the extent to which renewable energy sources are being

11  utilized in the state.

12         3.  Consideration of alternative scenarios of statewide

13  energy supply and demand for 5, 10, and 20 years, to identify

14  strategies for long-range action, including identification of

15  potential social, economic, and environmental effects.

16         4.  An assessment of the state's energy resources,

17  including examination of the availability of commercially

18  developable and imported fuels, and an analysis of anticipated

19  effects on the state's environment and social services

20  resulting from energy resource development activities or from

21  energy supply constraints, or both.

22         (e)(f)  The department shall make a report, as

23  requested by the Governor or the Legislature, reflecting its

24  activities and making recommendations of policies for

25  improvement of the state's response to energy supply and

26  demand and its effect on the health, safety, and welfare of

27  the people of Florida. The report shall include a report from

28  the Florida Public Service Commission on electricity and

29  natural gas and information on energy conservation programs

30  conducted and under way in the past year and shall include

31  

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 1  recommendations for energy conservation programs for the

 2  state, including, but not limited to, the following factors:

 3         1.  Formulation of specific recommendations for

 4  improvement in the efficiency of energy utilization in

 5  governmental, residential, commercial, industrial, and

 6  transportation sectors.

 7         2.  Collection and dissemination of information

 8  relating to energy conservation.

 9         3.  Development and conduct of educational and training

10  programs relating to energy conservation.

11         4.  An analysis of the ways in which state agencies are

12  seeking to implement s. 377.601(4), the state energy policy,

13  and recommendations for better fulfilling this policy.

14         (f)(g)  The department has authority to adopt rules

15  pursuant to ss. 120.536(1) and 120.54 to implement the

16  provisions of this act.

17         (h)  Promote the development and use of renewable

18  energy resources, in conformance with the provisions of

19  chapter 187 and s. 377.601, by:

20         1.  Establishing goals and strategies for increasing

21  the use of solar energy in this state.

22         2.  Aiding and promoting the commercialization of solar

23  energy technology, in cooperation with the Florida Solar

24  Energy Center, Enterprise Florida, Inc., and any other

25  federal, state, or local governmental agency which may seek to

26  promote research, development, and demonstration of solar

27  energy equipment and technology.

28         3.  Identifying barriers to greater use of solar energy

29  systems in this state, and developing specific recommendations

30  for overcoming identified barriers, with findings and

31  

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 1  recommendations to be submitted annually in the report to the

 2  Legislature required under paragraph (f).

 3         4.  In cooperation with the Department of

 4  Transportation, the Department of Community Affairs,

 5  Enterprise Florida, Inc., the Florida Solar Energy Center, and

 6  the Florida Solar Energy Industries Association, investigating

 7  opportunities, pursuant to the National Energy Policy Act of

 8  1992 and the Housing and Community Development Act of 1992,

 9  for solar electric vehicles and other solar energy

10  manufacturing, distribution, installation, and financing

11  efforts which will enhance this state's position as the leader

12  in solar energy research, development, and use.

13         5.  Undertaking other initiatives to advance the

14  development and use of renewable energy resources in this

15  state.

16  

17  In the exercise of its responsibilities under this paragraph,

18  the department shall seek the assistance of the solar energy

19  industry in this state and other interested parties and is

20  authorized to enter into contracts, retain professional

21  consulting services, and expend funds appropriated by the

22  Legislature for such purposes.

23         (g)(i)  The department shall promote energy

24  conservation in all energy use sectors throughout the state

25  and shall constitute the state agency primarily responsible

26  for this function. To this end, the department shall

27  coordinate the energy conservation programs of all state

28  agencies and review and comment on the energy conservation

29  programs of all state agencies.

30         (j)  The department shall serve as the state

31  clearinghouse for indexing and gathering all information

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 1  related to energy programs in state universities, in private

 2  universities, in federal, state, and local government

 3  agencies, and in private industry and shall prepare and

 4  distribute such information in any manner necessary to inform

 5  and advise the citizens of the state of such programs and

 6  activities. This shall include developing and maintaining a

 7  current index and profile of all research activities, which

 8  shall be identified by energy area and may include a summary

 9  of the project, the amount and sources of funding, anticipated

10  completion dates, or, in case of completed research,

11  conclusions, recommendations, and applicability to state

12  government and private sector functions. The department shall

13  coordinate, promote, and respond to efforts by all sectors of

14  the economy to seek financial support for energy activities.

15  The department shall provide information to consumers

16  regarding the anticipated energy-use and energy-saving

17  characteristics of products and services in coordination with

18  any federal, state, or local governmental agencies as may

19  provide such information to consumers.

20         (h)(k)  The department shall coordinate energy-related

21  programs of state government, including, but not limited to,

22  the programs provided in this section. To this end, the

23  department shall:

24         1.  Provide assistance to other state agencies,

25  counties, municipalities, and regional planning agencies to

26  further and promote their energy planning activities.

27         2.  Require, in cooperation with the Department of

28  Management Services, all state agencies to operate state-owned

29  and state-leased buildings in accordance with energy

30  conservation standards as adopted by the Department of

31  Management Services. Every 3 months, the Department of

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 1  Management Services shall furnish the department data on

 2  agencies' energy consumption in a format mutually agreed upon

 3  by the two departments.

 4         3.  Promote the development and use of renewable energy

 5  resources, energy efficiency technologies, and conservation

 6  measures.

 7         4.  Promote the recovery of energy from wastes,

 8  including, but not limited to, the use of waste heat, the use

 9  of agricultural products as a source of energy, and recycling

10  of manufactured products. Such promotion shall be conducted in

11  conjunction with, and after consultation with, the Department

12  of Environmental Protection, the Florida Public Service

13  Commission where electrical generation or natural gas is

14  involved, and any other relevant federal, state, or local

15  governmental agency having responsibility for resource

16  recovery programs.

17         (i)(l)  The department shall develop, coordinate, and

18  promote a comprehensive research plan for state programs. Such

19  plan shall be consistent with state energy policy and shall be

20  updated on a biennial basis.

21         (j)(m)  In recognition of the devastation to the

22  economy of this state and the dangers to the health and

23  welfare of residents of this state caused by Hurricane Andrew,

24  and the potential for such impacts caused by other natural

25  disasters, the department shall include in its energy

26  emergency contingency plan and provide to the Department of

27  Community Affairs for inclusion in the state model energy

28  efficiency building code specific provisions to facilitate the

29  use of cost-effective solar energy technologies as emergency

30  remedial and preventive measures for providing electric power,

31  

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 1  street lighting, and water heating service in the event of

 2  electric power outages.

 3         Section 4.  Section 377.901, Florida Statutes, is

 4  repealed.

 5         Section 5.  Effective July 1, 2007, paragraph (ccc) of

 6  subsection (7) of section 212.08, Florida Statutes, is

 7  amended, and subsection (19) is added to that section, to

 8  read:

 9         212.08  Sales, rental, use, consumption, distribution,

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

11  the rental, the use, the consumption, the distribution, and

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

13  following are hereby specifically exempt from the tax imposed

14  by this chapter.

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

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

17  that is otherwise taxable under this chapter when payment is

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

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

20  card, even when that representative or employee is

21  subsequently reimbursed by the entity. In addition, exemptions

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

23  transaction that is otherwise taxable under this chapter

24  unless the entity has obtained a sales tax exemption

25  certificate from the department or the entity obtains or

26  provides other documentation as required by the department.

27  Eligible purchases or leases made with such a certificate must

28  be in strict compliance with this subsection and departmental

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

30  certificate that is not in strict compliance with this

31  

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

 2  The department may adopt rules to administer this subsection.

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

 4  renewable energy technologies.--

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

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

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

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

 9  biodiesel and biodiesel blends with petroleum products as

10  adopted by the Department of Agriculture and Consumer

11  Services. Biodiesel may refer to biodiesel blends designated

12  BXX, where XX represents the volume percentage of biodiesel

13  fuel in the blend.

14         b.  "Ethanol" means nominally anhydrous denatured

15  alcohol produced by the fermentation of plant sugars meeting

16  the specifications for fuel ethanol and fuel ethanol blends

17  with petroleum products as adopted by the Department of

18  Agriculture and Consumer Services. Ethanol may refer to fuel

19  ethanol blends designated EXX, where XX represents the volume

20  percentage of fuel ethanol in the blend.

21         c.  "Hydrogen fuel cells" means equipment using

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

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

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

25  exempt from the tax imposed by this chapter:

26         a.  Hydrogen-powered vehicles, materials incorporated

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

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

29  all taxpayers.

30  

31  

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

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

 3  taxpayers.

 4         c.  Materials used in the distribution of biodiesel

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

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

 7  $2 $1 million in tax each state fiscal year for all taxpayers.

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

 9  distribution qualify for the exemption provided in this

10  sub-subparagraph.

11         3.  The Department of Environmental Protection shall

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

13  exemption provided in this paragraph.

14         4.a.  The exemption provided in this paragraph shall be

15  available to a purchaser only through a refund of previously

16  paid taxes.

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

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

19  Department of Environmental Protection. The application shall

20  be developed by the Department of Environmental Protection, in

21  consultation with the department, and shall require:

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

23  refund.

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

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

26  number or other permanent identification number.

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

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

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

30  property was purchased.

31  

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 1         (IV)  A sworn statement that the information provided

 2  is accurate and that the requirements of this paragraph have

 3  been met.

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

 5  Department of Environmental Protection shall review the

 6  application and shall notify the applicant of any

 7  deficiencies. Upon receipt of a completed application, the

 8  Department of Environmental Protection shall evaluate the

 9  application for exemption and issue a written certification

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

11  denial of such certification within 60 days after receipt of

12  the application. The Department of Environmental Protection

13  shall provide the department with a copy of each certification

14  issued upon approval of an application.

15         d.  Each certified applicant shall be responsible for

16  forwarding a certified copy of the application and copies of

17  all required documentation to the department within 6 months

18  after certification by the Department of Environmental

19  Protection.

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

21  refund application made pursuant to this paragraph. A refund

22  approved pursuant to this paragraph shall be made within 30

23  days after formal approval by the department.

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

25  120.536(1) and 120.54 to administer this paragraph, including

26  rules establishing forms and procedures for claiming this

27  exemption.

28         g.  The Department of Environmental Protection shall be

29  responsible for ensuring that the total amounts of the

30  exemptions authorized do not exceed the limits as specified in

31  subparagraph 2.

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 1         5.  The Department of Environmental Protection shall

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

 3  tax funds remaining in each fiscal year.

 4         6.  This paragraph expires July 1, 2010.

 5         (19)  ENERGY-EFFICIENT PRODUCTS.--

 6         (a)  In October of each year, the tax levied under this

 7  chapter may not be collected during the 14-day period

 8  beginning at 12:01 a.m., on the first Saturday, on the sale of

 9  a new energy-efficient product having a selling price of

10  $1,500 or less per product during that period. This exemption

11  applies only when the energy-efficient product is purchased

12  for noncommercial home or personal use and does not apply when

13  the product is purchased for trade, business, or resale. As

14  used in this section, the term "energy-efficient product"

15  means a dishwasher, clothes washer, air conditioner, ceiling

16  fan, compact florescent light bulb, dehumidifier, programmable

17  thermostat, or refrigerator that has been designated by the

18  United States Environmental Protection Agency or by the United

19  States Department of Energy as meeting or exceeding the

20  requirements under the Energy Star Program of either agency.

21  Purchases made under this subsection may not be made using a

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

23  construction company, building contractor, or commercial

24  business or entity that purchases or attempts to purchase the

25  energy-efficient products as exempt under this section commits

26  the offense of engaging in an unfair method of competition in

27  violation of s. 501.204, punishable as provided in s.

28  501.2075.

29         (b)  Notwithstanding chapter 120, the Department of

30  Revenue may adopt rules to administer paragraph (a).

31  

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 1         Section 6.  Effective July 1, 2008, paragraph (ccc) of

 2  subsection (7) of section 212.08, Florida Statutes, as amended

 3  by this act, is amended to read:

 4         212.08  Sales, rental, use, consumption, distribution,

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

 6  the rental, the use, the consumption, the distribution, and

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

 8  following are hereby specifically exempt from the tax imposed

 9  by this chapter.

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

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

12  that is otherwise taxable under this chapter when payment is

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

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

15  card, even when that representative or employee is

16  subsequently reimbursed by the entity. In addition, exemptions

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

18  transaction that is otherwise taxable under this chapter

19  unless the entity has obtained a sales tax exemption

20  certificate from the department or the entity obtains or

21  provides other documentation as required by the department.

22  Eligible purchases or leases made with such a certificate must

23  be in strict compliance with this subsection and departmental

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

25  certificate that is not in strict compliance with this

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

27  The department may adopt rules to administer this subsection.

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

29  renewable energy technologies.--

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

31  

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

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

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

 4  biodiesel and biodiesel blends with petroleum products as

 5  adopted by the Department of Agriculture and Consumer

 6  Services. Biodiesel may refer to biodiesel blends designated

 7  BXX, where XX represents the volume percentage of biodiesel

 8  fuel in the blend.

 9         b.  "Ethanol" means nominally anhydrous denatured

10  alcohol produced by the fermentation of plant sugars meeting

11  the specifications for fuel ethanol and fuel ethanol blends

12  with petroleum products as adopted by the Department of

13  Agriculture and Consumer Services. Ethanol may refer to fuel

14  ethanol blends designated EXX, where XX represents the volume

15  percentage of fuel ethanol in the blend.

16         c.  "Hydrogen fuel cells" means equipment using

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

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

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

20  exempt from the tax imposed by this chapter:

21         a.  Hydrogen-powered vehicles, materials incorporated

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

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

24  all taxpayers.

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

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

27  taxpayers.

28         c.  Materials used in the distribution of biodiesel

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

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

31  $2 million in tax each state fiscal year for all taxpayers.

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

 2  distribution qualify for the exemption provided in this

 3  sub-subparagraph.

 4         3.  The Florida Alternative Energy Development

 5  Corporation Department of Environmental Protection shall

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

 7  exemption provided in this paragraph.

 8         4.  The exemption provided in this paragraph shall be

 9  available only to the end user of the equipment, machinery, or

10  other materials.

11         5.4.a.  The exemption provided in this paragraph shall

12  be available to a purchaser only through a refund of

13  previously paid taxes.

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

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

16  Florida Alternative Energy Development Corporation Department

17  of Environmental Protection. The application shall be

18  developed by the Florida Alternative Energy Development

19  Corporation Department of Environmental Protection, in

20  consultation with the department, and shall require:

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

22  refund.

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

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

25  number or other permanent identification number.

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

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

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

29  property was purchased.

30  

31  

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 1         (IV)  A sworn statement that the information provided

 2  is accurate and that the requirements of this paragraph have

 3  been met.

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

 5  Florida Alternative Energy Development Corporation Department

 6  of Environmental Protection shall review the application and

 7  shall notify the applicant of any deficiencies. Upon receipt

 8  of a completed application, the Florida Alternative Energy

 9  Development Corporation Department of Environmental Protection

10  shall evaluate the application for exemption and issue a

11  written certification that the applicant is eligible for a

12  refund or issue a written denial of such certification within

13  60 days after receipt of the application. The Florida

14  Alternative Energy Development Corporation Department of

15  Environmental Protection shall provide the department with a

16  copy of each certification issued upon approval of an

17  application.

18         d.  Each certified applicant shall be responsible for

19  forwarding a certified copy of the application and copies of

20  all required documentation to the department within 6 months

21  after certification by the Florida Alternative Energy

22  Development Corporation 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 Florida Alternative Energy Development

 2  Corporation Department of Environmental Protection shall be

 3  responsible for ensuring that the total amounts of the

 4  exemptions authorized do not exceed the limits as specified in

 5  subparagraph 2.

 6         6.5.  The Department of Environmental Protection shall

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

 8  tax funds remaining in each fiscal year.

 9         7.6.  This paragraph expires July 1, 2010.

10         Section 7.  Effective July 1, 2008, paragraph (y) of

11  subsection (8) of section 213.053, Florida Statutes, is

12  amended to read:

13         213.053  Confidentiality and information sharing.--

14         (8)  Notwithstanding any other provision of this

15  section, the department may provide:

16         (y)  Information relative to ss. 212.08(7)(ccc) and

17  220.192 to the Florida Alternative Energy Development

18  Corporation Department of Environmental Protection for use in

19  the conduct of its official business.

20  

21  Disclosure of information under this subsection shall be

22  pursuant to a written agreement between the executive director

23  and the agency.  Such agencies, governmental or

24  nongovernmental, shall be bound by the same requirements of

25  confidentiality as the Department of Revenue.  Breach of

26  confidentiality is a misdemeanor of the first degree,

27  punishable as provided by s. 775.082 or s. 775.083.

28         Section 8.  Effective July 1, 2007, subsection (1) of

29  section 220.192, Florida Statutes, is amended to read:

30         220.192  Renewable energy technologies investment tax

31  credit.--

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

 2  term:

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

 4  212.08(7)(ccc).

 5         (b)  "Eligible costs" means:

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

 7  operation and maintenance costs, and research and development

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

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

10  in connection with an investment in hydrogen-powered vehicles

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

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

13  equipping such technologies in the state.

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

15  operation and maintenance costs, and research and development

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

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

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

19  in connection with an investment in commercial stationary

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

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

22  technologies in the state.

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

24  operation and maintenance costs, and research and development

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

26  a limit of $13 $6.5 million per state fiscal year for all

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

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

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

30  installing, and equipping such technologies in the state.

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

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 1  distribution qualify as an eligible cost under this

 2  subparagraph.

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

 4  212.08(7)(ccc).

 5         (d)  "Hydrogen fuel cell" means hydrogen fuel cell as

 6  defined in s. 212.08(7)(ccc).

 7         Section 9.  Effective July 1, 2008, section 220.192,

 8  Florida Statutes, as amended by this act, is amended to read:

 9         220.192  Renewable energy technologies investment tax

10  credit.--

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

12  term:

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

14  212.08(7)(ccc).

15         (b)  "Eligible costs" means:

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

17  operation and maintenance costs, and research and development

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

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

20  in connection with an investment in hydrogen-powered vehicles

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

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

23  equipping such technologies in the state.

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

25  operation and maintenance costs, and research and development

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

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

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

29  in connection with an investment in commercial stationary

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

31  

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

 2  technologies in the state.

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

 4  operation and maintenance costs, and research and development

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

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

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

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

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

10  installing, and equipping such technologies in the state.

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

12  distribution qualify as an eligible cost under this

13  subparagraph.

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

15  212.08(7)(ccc).

16         (d)  "Hydrogen fuel cell" means hydrogen fuel cell as

17  defined in s. 212.08(7)(ccc).

18         (2)  TAX CREDIT.--For tax years beginning on or after

19  January 1, 2007, a credit against the tax imposed by this

20  chapter shall be granted in an amount equal to the eligible

21  costs. Credits may be used in tax years beginning January 1,

22  2007, and ending December 31, 2010, after which the credit

23  shall expire. If the credit is not fully used in any one tax

24  year because of insufficient tax liability on the part of the

25  corporation, the unused amount may be carried forward and used

26  in tax years beginning January 1, 2007, and ending December

27  31, 2012, after which the credit carryover expires and may not

28  be used. A taxpayer that files a consolidated return in this

29  state as a member of an affiliated group under s. 220.131(1)

30  may be allowed the credit on a consolidated return basis up to

31  the amount of tax imposed upon the consolidated group. Any

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 1  eligible cost for which a credit is claimed and which is

 2  deducted or otherwise reduces federal taxable income shall be

 3  added back in computing adjusted federal income under s.

 4  220.13.

 5         (3)  CORPORATE APPLICATION PROCESS.--Any corporation

 6  wishing to obtain tax credits available under this section

 7  must submit to the Florida Alternative Energy Development

 8  Corporation Department of Environmental Protection an

 9  application for tax credit which that includes a complete

10  description of all eligible costs for which the corporation is

11  seeking a credit and a description of the total amount of

12  credits sought. The Florida Alternative Energy Development

13  Corporation Department of Environmental Protection shall make

14  a determination on the eligibility of the applicant for the

15  credits sought and certify the determination to the applicant

16  and the Department of Revenue. The corporation must attach the

17  Florida Alternative Energy Development Corporation's

18  Department of Environmental Protection's certification to the

19  tax return on which the credit is claimed. The Florida

20  Alternative Energy Development Corporation is Department of

21  Environmental Protection shall be responsible for ensuring

22  that the corporate income tax credits granted in each fiscal

23  year do not exceed the limits provided for in this section.

24  The Florida Alternative Energy Development Corporation may

25  Department of Environmental Protection is authorized to adopt

26  the necessary rules, guidelines, and application materials for

27  the application process.

28         (4)  TAXPAYER APPLICATION PROCESS.--To claim a credit

29  under this section, each taxpayer must apply to the Florida

30  Alternative Energy Development Corporation Department of

31  Environmental Protection for an allocation of each type of

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 1  annual credit by the date established by the Florida

 2  Alternative Energy Development Corporation Department of

 3  Environmental Protection. The application form may be

 4  established by the Florida Alternative Energy Development

 5  Corporation Department of Environmental Protection and shall

 6  include an affidavit from each taxpayer certifying that all

 7  information contained in the application, including all

 8  records of eligible costs claimed as the basis for the tax

 9  credit, are true and correct. Approval of the credits under

10  this section shall be accomplished on a first-come,

11  first-served basis, based upon the date complete applications

12  are received by the Florida Alternative Energy Development

13  Corporation Department of Environmental Protection. A taxpayer

14  shall submit only one complete application based upon eligible

15  costs incurred within a particular state fiscal year. The

16  corporation may not accept incomplete placeholder applications

17  will not be accepted and such an application does will not

18  secure a place in the first-come, first-served application

19  line. If a taxpayer does not receive a tax credit allocation

20  due to the exhaustion of the annual tax credit authorizations,

21  then such taxpayer may reapply in the following year for those

22  eligible costs and shall be given will have priority over

23  other applicants for the allocation of credits.

24         (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF

25  CREDITS.--

26         (a)  In addition to its existing audit and

27  investigation authority, the Department of Revenue may perform

28  any additional financial and technical audits and

29  investigations, including examining the accounts, books, and

30  records of the tax credit applicant, which that are necessary

31  to verify the eligible costs included in the tax credit return

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 1  and to ensure compliance with this section. The Florida

 2  Alternative Energy Development Corporation Department of

 3  Environmental Protection shall provide technical assistance

 4  when requested by the Department of Revenue on any technical

 5  audits or examinations performed pursuant to this section.

 6         (b)  It is grounds for forfeiture of previously claimed

 7  and received tax credits if the Department of Revenue

 8  determines, as a result of either an audit or examination or

 9  from information received from the Florida Alternative Energy

10  Development Corporation Department of Environmental

11  Protection, that a taxpayer received tax credits pursuant to

12  this section to which the taxpayer was not entitled. The

13  taxpayer is responsible for returning forfeited tax credits to

14  the Department of Revenue, and such funds shall be paid into

15  the General Revenue Fund of the state.

16         (c)  The Florida Alternative Energy Development

17  Corporation Department of Environmental Protection may revoke

18  or modify any written decision granting eligibility for tax

19  credits under this section if it is discovered that the tax

20  credit applicant submitted any false statement,

21  representation, or certification in any application, record,

22  report, plan, or other document filed in an attempt to receive

23  tax credits under this section. The Florida Alternative Energy

24  Development Corporation Department of Environmental Protection

25  shall immediately notify the Department of Revenue of any

26  revoked or modified orders affecting previously granted tax

27  credits. Additionally, the taxpayer must notify the Department

28  of Revenue of any change in its tax credit claimed.

29         (d)  The taxpayer shall file with the Department of

30  Revenue an amended return or such other report as the

31  Department of Revenue prescribes by rule and shall pay any

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 1  required tax and interest within 60 days after the taxpayer

 2  receives notification from the Florida Alternative Energy

 3  Development Corporation Department of Environmental Protection

 4  that previously approved tax credits have been revoked or

 5  modified. If the revocation or modification order is

 6  contested, the taxpayer shall file an amended return or other

 7  report as provided in this paragraph within 60 days after a

 8  final order is issued following proceedings.

 9         (e)  A notice of deficiency may be issued by the

10  Department of Revenue at any time within 3 years after the

11  taxpayer receives formal notification from the Florida

12  Alternative Energy Development Corporation Department of

13  Environmental Protection that previously approved tax credits

14  have been revoked or modified. If a taxpayer fails to notify

15  the Department of Revenue of any changes to its tax credit

16  claimed, a notice of deficiency may be issued at any time.

17         (6)  RULES.--The Department of Revenue may shall have

18  the authority to adopt rules relating to the forms required to

19  claim a tax credit under this section, the requirements and

20  basis for establishing an entitlement to a credit, and the

21  examination and audit procedures required to administer this

22  section.

23         (7)  PUBLICATION.--The Florida Alternative Energy

24  Development Corporation Department of Environmental Protection

25  shall determine and publish on a regular basis the amount of

26  available tax credits remaining in each fiscal year.

27         Section 10.  Effective July 1, 2008, section 377.803,

28  Florida Statutes, is amended to read:

29         377.803  Definitions.--As used in ss. 377.801-377.806,

30  the term:

31  

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 1         (1)  "Act" means the Florida Renewable Energy

 2  Technologies and Energy Efficiency Act.

 3         (2)  "Corporation" means the Florida Alternative Energy

 4  Development Corporation.

 5         (2)  "Approved metering equipment" means a device

 6  capable of measuring the energy output of a solar thermal

 7  system that has been approved by the commission.

 8         (3)  "Commission" means the Florida Public Service

 9  Commission.

10         (4)  "Department" means the Department of Environmental

11  Protection.

12         (4)(5)  "Person" means an individual, partnership,

13  joint venture, private or public corporation, association,

14  firm, public service company, or any other public or private

15  entity.

16         (5)(6)  "Renewable energy" means electrical,

17  mechanical, or thermal energy produced from a method that uses

18  one or more of the following fuels or energy sources:

19  hydrogen, biomass, solar energy, geothermal energy, wind

20  energy, ocean energy, waste heat, or hydroelectric power,

21  ethanol, or biodiesel.

22         (6)(7)  "Renewable energy technology" means any

23  technology that generates or utilizes a renewable energy

24  resource.

25         (7)(8)  "Solar energy system" means equipment that

26  provides for the collection and use of incident solar energy

27  for water heating, space heating or cooling, or other

28  applications that would normally require a conventional source

29  of energy such as petroleum products, natural gas, or

30  electricity that performs primarily with solar energy. In

31  other systems in which solar energy is used in a supplemental

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 1  way, only those components that collect and transfer solar

 2  energy shall be included in this definition.

 3         (8)(9)  "Solar photovoltaic system" means a device that

 4  converts incident sunlight into electrical current.

 5         (9)(10)  "Solar thermal system" means a device that

 6  traps heat from incident sunlight in order to heat water.

 7         Section 11.  Effective July 1, 2008, section 377.804,

 8  Florida Statutes, is amended to read:

 9         377.804  Renewable Energy Technologies Grants

10  Program.--

11         (1)  The Renewable Energy Technologies Grants Program

12  is established within the corporation department to provide

13  renewable energy matching grants for demonstration,

14  commercialization, research, and development projects relating

15  to renewable energy technologies.

16         (2)  Matching grants for renewable energy technology

17  demonstration, commercialization, research, and development

18  projects may be made to any of the following:

19         (a)  Municipalities and county governments.

20         (b)  Established for-profit companies licensed to do

21  business in the state.

22         (c)  Universities and colleges in the state.

23         (d)  Utilities located and operating within the state.

24         (e)  Not-for-profit organizations.

25         (f)  Other qualified persons, as determined by the

26  corporation department.

27         (3)  The corporation department may adopt rules

28  pursuant to ss. 120.536(1) and 120.54 to provide for

29  application requirements, provide for ranking of applications,

30  and administer the awarding of grants under this program.

31  

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 1         (4)  Factors the corporation department shall consider

 2  in awarding grants include, but are not limited to:

 3         (a)  The availability of matching funds or other

 4  in-kind contributions applied to the total project from an

 5  applicant. The corporation department shall give greater

 6  preference to projects that provide such matching funds or

 7  other in-kind contributions.

 8         (b)  The degree to which the project stimulates

 9  in-state capital investment and economic development in

10  metropolitan and rural areas, including the creation of jobs

11  and the future development of a commercial market for

12  renewable energy technologies.

13         (c)  The extent to which the proposed project has been

14  demonstrated to be technically feasible based on pilot project

15  demonstrations, laboratory testing, scientific modeling, or

16  engineering or chemical theory that supports the proposal.

17         (d)  The degree to which the project incorporates an

18  innovative new technology or an innovative application of an

19  existing technology.

20         (e)  The degree to which a project generates thermal,

21  mechanical, or electrical energy by means of a renewable

22  energy resource that has substantial long-term production

23  potential.

24         (f)  The degree to which a project demonstrates

25  efficient use of energy and material resources.

26         (g)  The degree to which the project fosters overall

27  understanding and appreciation of renewable energy

28  technologies.

29         (h)  The ability to administer a complete project.

30         (i)  Project duration and timeline for expenditures.

31  

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 1         (j)  The geographic area in which the project is to be

 2  conducted in relation to other projects.

 3         (k)  The degree of public visibility and interaction.

 4         (5)  The corporation department shall solicit the

 5  expertise of other state agencies in evaluating project

 6  proposals. State agencies shall cooperate with the Department

 7  of Environmental Protection and provide such assistance as

 8  requested.

 9         (6)  The department shall coordinate and actively

10  consult with the Department of Agriculture and Consumer

11  Services during the review and approval process of grants

12  relating to bioenergy projects for renewable energy

13  technology, and the departments shall jointly determine the

14  grant awards to these bioenergy projects. No grant funding

15  shall be awarded to any bioenergy project without such joint

16  approval. Factors for consideration in awarding grants may

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

18         (a)  The project stimulates in-state capital investment

19  and economic development in metropolitan and rural areas,

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

21  commercial market for bioenergy.

22         (b)  The project produces bioenergy from Florida-grown

23  crops or biomass.

24         (c)  The project demonstrates efficient use of energy

25  and material resources.

26         (d)  The project fosters overall understanding and

27  appreciation of bioenergy technologies.

28         (e)  Matching funds and in-kind contributions from an

29  applicant are available.

30         (f)  The project duration and the timeline for

31  expenditures are acceptable.

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 1         (g)  The project has a reasonable assurance of

 2  enhancing the value of agricultural products or will expand

 3  agribusiness in the state.

 4         (h)  Preliminary market and feasibility research has

 5  been conducted by the applicant or others and shows there is a

 6  reasonable assurance of a potential market.

 7         Section 12.  Effective July 1, 2008, section 377.806,

 8  Florida Statutes, is amended to read:

 9         377.806  Solar Energy System Incentives Program.--

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

11  Program is established within the corporation department to

12  provide financial incentives for the purchase and installation

13  of solar energy systems. Any resident of the state who

14  purchases and installs a new solar energy system of 2

15  kilowatts or larger for a solar photovoltaic system, a solar

16  energy system that provides at least 50 percent of a

17  building's hot water consumption for a solar thermal system,

18  or a solar thermal pool heater, from July 1, 2006, through

19  June 30, 2010, is eligible for a rebate on a portion of the

20  purchase price of that solar energy system. Payment of a

21  rebate may be made only to the end user of an eligible system.

22         (2)  SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.--

23         (a)  Eligibility requirements.--A solar photovoltaic

24  system qualifies for a rebate if:

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

26  electrician, electrical contractor, or solar contractor.

27         2.  The system complies with state interconnection

28  standards as provided by the commission.

29         3.  The system complies with all applicable building

30  codes as defined by the local jurisdictional authority.

31  

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

 2  $4 per watt based on the total wattage rating of the system.

 3  The maximum allowable rebate per solar photovoltaic system

 4  installation shall be as follows:

 5         1.  Twenty thousand dollars for a residence.

 6         2.  One hundred thousand dollars for a place of

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

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

 9  including condominiums or apartment buildings.

10         (3)  SOLAR THERMAL SYSTEM INCENTIVE.--

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

12  qualifies for a rebate if:

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

14  or plumbing contractor.

15         2.  The system complies with all applicable building

16  codes as defined by the local jurisdictional authority.

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

18  installation of solar thermal systems shall be as follows:

19         1.  Five hundred dollars for a residence.

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

21  $5,000 for a place of business, a publicly owned or operated

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

23  not-for-profit organization, including condominiums or

24  apartment buildings. Btu must be verified by approved metering

25  equipment.

26         (4)  SOLAR THERMAL POOL HEATER INCENTIVE.--

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

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

29  state-licensed solar or plumbing contractor and the system

30  complies with all applicable building codes as defined by the

31  local jurisdictional authority.

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

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

 3  installation.

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

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

 6  equipment.

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

 8  system described in paragraph (2)(a) per resident, per state

 9  fiscal year.

10         (7)(6)  REBATE AVAILABILITY.--The corporation

11  department shall determine and publish on a regular basis the

12  amount of rebate funds remaining in each fiscal year. The

13  total dollar amount of all rebates issued by the department is

14  subject to the total amount of appropriations in any fiscal

15  year for this program. If funds are insufficient during the

16  current fiscal year, any requests for rebates received during

17  that fiscal year may be processed during the following fiscal

18  year. Requests for rebates received in a fiscal year that are

19  processed during the following fiscal year shall be given

20  priority over requests for rebates received during the

21  following fiscal year.

22         (7)  RULES.--The corporation department shall adopt

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

24  applications and administer the issuance of rebates.

25         Section 13.  Effective July 1, 2007, section 366.915,

26  Florida Statutes, is created to read:

27         366.915  Minimum purchase of renewable energy.--

28         (1)  This section may be cited as the "Florida

29  Renewable Portfolio Standard Act."

30         (2)(a)  The Legislature finds that it is in the

31  public's interest to:

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 1         1.  Encourage investment in renewable energy resources

 2  in order to expand environmentally sustainable methods of

 3  generating electricity.

 4         2.  Stimulate the economic growth of this state.

 5         3.  Enhance the continued diversification of the fuel

 6  sources for electricity used in the state.

 7         (b)  The Legislature further finds and declares that a

 8  program requiring public utilities to use renewable energy is

 9  a way to encourage investments in renewable energy resources,

10  stimulate economic growth within the state, and enhance the

11  continued diversification of the state's energy resources.

12         (3)  As used in this section, the term:

13         (a)  "Biomass" means a power source that is comprised

14  of, but not limited to, combustible residues or gases from

15  forest products manufacturing, agricultural and orchard crops,

16  waste products from livestock and poultry operations and food

17  processing, urban wood waste, municipal solid waste, municipal

18  liquid waste treatment operations, and landfill gas.

19         (b)  "Renewable energy" means electrical energy

20  produced from a method that uses one or more of the following

21  fuels or energy sources: hydrogen produced from sources other

22  than fossil fuels, biomass, solar energy, geothermal energy,

23  wind energy, ocean energy, and hydroelectric power. The term

24  also includes energy-efficiency resources, such as waste heat

25  from sulfuric acid manufacturing operations and combined heat

26  and power. It also includes nuclear and coal fuel when coal is

27  used in a facility having potential carbon-dioxide-capturing

28  technology.

29         (4)  Each public utility, as defined in s. 366.02,

30  shall ensure that by 2015 and for each year thereafter, at

31  least 50 percent of all new net energy for load, using 2006 as

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 1  a base year, is derived from renewable energy produced in this

 2  state.

 3         (5)  If a public utility must procure renewable energy

 4  in order to satisfy the requirements of this section, the

 5  public utility shall use a competitive-procurement process,

 6  give priority to entities that produce renewable energy in

 7  this state, and use sources of renewable energy which are not

 8  related to or affiliated with the public utility, except when,

 9  and only to the extent that, such entities collectively cannot

10  produce enough renewable energy to satisfy the requirements of

11  this section.

12         (6)  The Public Service Commission may adopt rules to

13  ensure that the procurement of renewable energy by public

14  utilities is conducted in a fair and impartial manner,

15  consistent with the goals set forth in this section. The

16  Public Service Commission also may develop an accreditation

17  process to ensure that any entities providing renewable energy

18  in this state satisfy the goals of this section.

19         Section 14.  Effective July 1, 2007, paragraph (b) of

20  subsection (2) of section 366.91, Florida Statutes, is amended

21  to read:

22         366.91  Renewable energy.--

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

24         (b)  "Renewable energy" means electrical energy

25  produced from a method that uses one or more of the following

26  fuels or energy sources: hydrogen produced from sources other

27  than fossil fuels, biomass, solar energy, geothermal energy,

28  wind energy, ocean energy, and hydroelectric power. The term

29  also includes the alternative energy efficiency resources

30  resource, waste heat, from sulfuric acid manufacturing

31  operations, and combined heat and power.

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 1         Section 15.  Effective July 1, 2007, subsection (4) is

 2  added to section 366.02, Florida Statutes, to read:

 3         366.02  Definitions.--As used in this chapter:

 4         (4)  "Net-metering program" means a process by which an

 5  electric utility buys back energy produced by a customer who

 6  uses one or more renewable energy systems and produces more

 7  energy than the customer uses.

 8         Section 16.  Effective July 1, 2007, section 366.925,

 9  Florida Statutes, is created to read:

10         366.925  Electric utilities; net metering.--

11         (1)  This section may be cited as the "Florida Net

12  Metering Conservation Act."

13         (2)  The commission shall develop rules requiring all

14  electric utilities to develop net-metering programs that meet

15  the requirements of this subsection. Each utility shall make

16  available meters that measure both energy production and

17  consumption by the customer. The customer shall receive credit

18  at the full retail rate for energy generated by an eligible

19  system. If the customer's system generates more energy than

20  the customer consumes during a billing cycle, the utility

21  shall pay the customer for the excess generation at its full

22  avoided cost, as set forth in s. 366.051.

23         (3)  The commission shall develop rules setting the

24  interconnection requirements and other standards that

25  renewable energy systems must meet in order to ensure public

26  safety and reliability for customers who participate in the

27  net-metering program.

28         Section 17.  Effective July 1, 2007, every wholesaler

29  of diesel to a marina within this state must offer biodiesel

30  for sale.

31  

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 1         Section 18.  Effective July 1, 2007, section 403.0874,

 2  Florida Statutes, is created to read:

 3         403.0874  Greenhouse gas inventories.--

 4         (1)  The department shall develop greenhouse gas

 5  inventories that account for annual greenhouse gases emitted

 6  into and removed from the atmosphere, and that forecast gases

 7  emitted into and removed from the atmosphere, for all major

 8  greenhouse gases and for time periods that are determined

 9  sufficient by the department to provide for adequate analysis

10  and planning.

11         (2)  By rule, the department shall define what

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

13  criteria for defining major emitters, which emitters must

14  report emissions, and what methodologies shall be used to

15  estimate gases emitted into and removed from the atmosphere

16  and determine those that are not required to be reported.

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

18  defined greenhouse gases to report emissions according to

19  methodologies and reporting systems approved by the department

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

21  quality-assured data from continuous emissions-monitoring

22  systems.

23         Section 19.  Effective July 1, 2007, subsection (2) of

24  section 366.04, Florida Statutes, is amended, and subsection

25  (7) is added to that section, to read:

26         366.04  Jurisdiction of commission.--

27         (2)  In the exercise of its jurisdiction, the

28  commission shall have power over electric utilities for the

29  following purposes:

30         (a)  To prescribe uniform systems and classifications

31  of accounts.

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 1         (b)  To prescribe a rate structure for all electric

 2  utilities.

 3         (c)  To require electric power conservation and

 4  reliability within a coordinated grid, for operational as well

 5  as emergency purposes.

 6         (d)  To approve territorial agreements between and

 7  among rural electric cooperatives, municipal electric

 8  utilities, and other electric utilities under its

 9  jurisdiction.  However, nothing in this chapter shall be

10  construed to alter existing territorial agreements as between

11  the parties to such agreements.

12         (e)  To resolve, upon petition of a utility or on its

13  own motion, any territorial dispute involving service areas

14  between and among rural electric cooperatives, municipal

15  electric utilities, and other electric utilities under its

16  jurisdiction. In resolving territorial disputes, the

17  commission may consider, but not be limited to consideration

18  of, the ability of the utilities to expand services within

19  their own capabilities and the nature of the area involved,

20  including population, the degree of urbanization of the area,

21  its proximity to other urban areas, and the present and

22  reasonably foreseeable future requirements of the area for

23  other utility services.

24         (f)  To prescribe and require the filing of periodic

25  reports and other data as may be reasonably available and as

26  necessary to exercise its jurisdiction hereunder.

27         (g)  To review and approve or deny proposed sales and

28  transfers of utility assets, including a proposed merger or

29  acquisition of the utility.

30  

31  

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 1  No provision of this chapter shall be construed or applied to

 2  impede, prevent, or prohibit any municipally owned electric

 3  utility system from distributing at retail electrical energy

 4  within its corporate limits, as such corporate limits exist on

 5  July 1, 1974; however, existing territorial agreements shall

 6  not be altered or abridged hereby.

 7         (7)  The commission may establish rules and standards

 8  of conduct to insulate and protect the public from business

 9  practices and merger activity that would adversely affect the

10  credit rating and financial standing of the state's regulated

11  public utilities. The commission has specific authority to

12  approve, deny, or impose conditions upon mergers between a

13  public utility and another entity. As used in this subsection,

14  the term "assets" includes, but is not limited to, real

15  assets, financial assets, construction work in progress, and

16  allowances for funds used during construction. However, the

17  commission may establish by rule minimum levels of value of

18  asset transfer which shall be deemed immaterial because the

19  amount involved would not adversely affect the utility and

20  therefore is not subject to this subsection. In the exercise

21  of this jurisdiction, the commission has the powers set forth

22  in this subsection.

23         (a)  The commission may restrict and mandate the use

24  and terms of a sale or transfer of utility assets. This

25  includes a restriction against using utility assets as

26  collateral or a guarantee for any nonutility business. A

27  regulated public utility doing business in this state may not,

28  without first obtaining the commission's approval:

29         1.  Sell, lease, transfer, assign, or otherwise dispose

30  of the whole of the property of such regulated public utility

31  which is necessary or useful in the performance of its duties

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 1  to the public or any part thereof of a value in excess of

 2  those values provided in this subsection, or sell, lease,

 3  assign or otherwise dispose of any franchise, permit, or right

 4  to maintain and operate such regulated public utility or

 5  public utility property or to perform any service as a public

 6  utility;

 7         2.  Mortgage or otherwise encumber the whole or any

 8  part of the property of such regulated public utility which is

 9  necessary or useful in the performance of its duties to the

10  public, including any franchise, permit, or right to maintain

11  and operate such public utility or public utility property or

12  to perform any service as a public utility; or

13         3.  By any means whatsoever, directly or indirectly,

14  merge, consolidate, or interconnect any of its lines, plants,

15  systems, or other property whatsoever, including any

16  franchise, permit, or right to maintain or operate any public

17  utility property or to perform any service as a public

18  utility, or any part thereof, with any other public utility.

19  

20  However, a sale, assignment, lease, or transfer of

21  utility-related facilities or assets, or any portion thereof,

22  may occur prior to commission approval if the contract for

23  sale, lease, assignment, or transfer is made contingent upon

24  commission approval.

25         (b)  A merger or combination affecting any public

26  utility may not occur through acquisition or control by stock

27  purchase or otherwise without the approval of the commission

28  and a determination that the proposed merger or combination

29  affecting any public utility through acquisition or control by

30  stock purchase or otherwise is in the public interest and will

31  fulfill the commitments, obligations, and representations of

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 1  the public utility. However, a merger or combination affecting

 2  any public utility made through acquisition or control by

 3  stock purchase or otherwise may occur prior to the

 4  commission's approval if such action is made contingent upon

 5  commission approval.

 6         (c)  In its determination of whether a transaction is

 7  in the public interest, the commission may consider whether:

 8         1.  The transaction will adversely affect the adequacy,

 9  efficiency, and reliability of the electric service that is

10  provided to the public utility's end-use customers;

11         2.  The transaction will result in increased cost of

12  the electric service that is provided to the public utility's

13  end-use customers without offsetting benefits;

14         3.  The transaction will harm the financial condition

15  of the public utility; and

16         4.  Comparable economic savings can be achieved through

17  other means, including no transaction, while avoiding the

18  possible adverse consequences of the proposed transaction.

19         (d)  The commission may approve, deny, or require

20  modification of any request submitted under this subsection. A

21  public utility seeking review under this subsection shall file

22  a petition with the commission coincident with or prior to

23  filing a similar petition to the Federal Energy Regulatory

24  Commission pursuant to s. 1289, EPACT 2005, s. 203(a) of the

25  Federal Power Act, 16 U.S.C. s. 824b(a). In support of the

26  petition, the public utility shall file direct testimony and

27  supporting documents at the time the initial petition is

28  submitted to the commission.

29         (e)  The commission may adopt rules to administer this

30  subsection, including setting material asset value thresholds.

31  

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 1         Section 20.  Section 212.086, Florida Statutes, is

 2  created to read:

 3         212.086  Energy Efficient Motor Vehicle Sales Tax

 4  Refund Program.--

 5         (1)  The Energy Efficient Motor Vehicle Sales Tax

 6  Refund Program is established to provide financial incentives

 7  for the purchase of alternative motor vehicles as specified by

 8  this section.

 9         (2)  Any person who purchases an alternative motor

10  vehicle from a sales tax dealer in the state is eligible for a

11  refund of the sales tax paid under this chapter. The sales tax

12  that is eligible for refund shall be computed on the sales

13  price of the alternative motor vehicle up to a maximum sales

14  price of $15,000.

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

16  this section, the alternative motor vehicle must be certified

17  as a new qualified hybrid motor vehicle, new qualified

18  alternative fuel motor vehicle, new qualified fuel cell motor

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

20  the Internal Revenue Service for the income tax credit for

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

22  Revenue Code of 1986, as amended.

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

24  application for refund must be filed with the department

25  within 90 days after purchase of the alternative motor vehicle

26  and must contain the following:

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

28  refund.

29         (b)  A specific description of the alternative motor

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

31  identification number.

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 1         (c)  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  alternative motor vehicle was purchased.

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

 6  accurate and that the requirements of this section have been

 7  met.

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

 9  the department is limited to the total amount of

10  appropriations in any fiscal year for this program. The

11  department may approve refunds up to the amount appropriated

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

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

14  funds are insufficient during the current fiscal year, any

15  requests for refund received during that fiscal year may be

16  processed during the following fiscal year, subject to the

17  appropriation, and have priority over new applications for

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

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

20  for payment in the following fiscal year.

21         (6)  The department shall adopt rules pursuant to ss.

22  120.536(1) and 120.54 to administer this section, including

23  rules establishing forms and procedures for claiming this

24  refund.

25         (7)  A taxpayer who receives a refund pursuant to s.

26  212.08(7)(ccc) may not be allowed a refund provided in this

27  section.

28         (8)  This section is repealed July 1, 2010.

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

30  $___ million is appropriated from the General Revenue Fund to

31  the Administrative Trust Fund of the Department of Revenue for

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 1  the purpose of paying sales tax refunds as provided in this

 2  act.

 3         Section 22.  Subsection (5) is added to section

 4  255.252, Florida Statutes, to read:

 5         255.252  Findings and intent.--

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

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

 8  be suitable to consider for a guaranteed energy-performance

 9  savings contract pursuant to s. 489.145. Such list shall be

10  submitted to the Department of Management Services by December

11  31, 2007, and shall include all facilities over 5,000 square

12  feet in area for which the agency pays for the expenses of

13  utilities and other operating expenses as they relate to

14  energy use. In consultation with each department secretary or

15  director, by March 1, 2008, the Department of Management

16  Services shall evaluate each agency's facilities found

17  suitable for energy conservation projects, and shall develop

18  an energy efficiency project schedule based on factors such as

19  project magnitude, efficiency and effectiveness of energy

20  conservation measures to be implemented, and other factors

21  that may be advantageous to pursue. Such schedule shall

22  provide the deadline for guaranteed energy-performance savings

23  contract improvements to be made to the state-owned buildings.

24         Section 23.  Paragraph (b) of subsection (2) and

25  subsection (5) of section 287.063, Florida Statutes, are

26  amended to read:

27         287.063  Deferred-payment commodity contracts; preaudit

28  review.--

29         (b)  The Chief Financial Officer shall establish, by

30  rule, criteria for approving purchases made under

31  deferred-payment contracts which require the payment of

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 1  interest. Criteria shall include, but not be limited to, the

 2  following provisions:

 3         1.  No contract shall be approved in which interest

 4  exceeds the statutory ceiling contained in this section.

 5  However, the interest component of any master equipment

 6  financing agreement entered into for the purpose of

 7  consolidated financing of a deferred-payment, installment

 8  sale, or lease-purchase shall be deemed to comply with the

 9  interest rate limitation of this section so long as the

10  interest component of every interagency agreement under such

11  master equipment financing agreement complies with the

12  interest rate limitation of this section.

13         2.  No deferred-payment purchase for less than $30,000

14  shall be approved, unless it can be satisfactorily

15  demonstrated and documented to the Chief Financial Officer

16  that failure to make such deferred-payment purchase would

17  adversely affect an agency in the performance of its duties.

18  However, the Chief Financial Officer may approve any

19  deferred-payment purchase if the Chief Financial Officer

20  determines that such purchase is economically beneficial to

21  the state.

22         3.  No agency shall obligate an annualized amount of

23  payments for deferred-payment purchases in excess of current

24  operating capital outlay appropriations, unless specifically

25  authorized by law or unless it can be satisfactorily

26  demonstrated and documented to the Chief Financial Officer

27  that failure to make such deferred-payment purchase would

28  adversely affect an agency in the performance of its duties.

29         3.4.  No contract shall be approved which extends

30  payment beyond 5 years, unless it can be satisfactorily

31  demonstrated and documented to the Chief Financial Officer

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 1  that failure to make such deferred-payment purchase would

 2  adversely affect an agency in the performance of its duties.

 3  The payment term may not extend beyond the anticipated useful

 4  life of the equipment financed.

 5         (5)  For purposes of this section, the annualized

 6  amount of any such deferred payment commodity contract must be

 7  supported from available recurring funds appropriated to the

 8  agency in an appropriation category, other than the expense

 9  appropriation category as defined in chapter 216, that the

10  Chief Financial Officer has determined is appropriate or that

11  the Legislature has designated for payment of the obligation

12  incurred under this section.

13         Section 24.  Subsections (10) and (11) of section

14  287.064, Florida Statutes, are amended to read:

15         287.064  Consolidated financing of deferred-payment

16  purchases.--

17         (10)  Energy-related or conservation-related equipment,

18  including, but not limited to, that purchased as part of Costs

19  incurred pursuant to a guaranteed energy performance savings

20  contract, including the cost of energy conservation measures,

21  each as defined in s. 489.145, may be financed pursuant to a

22  master equipment financing agreement; however, the costs of

23  training, operation, and maintenance may not be financed. The

24  period of time for repayment of the funds drawn pursuant to

25  the master equipment financing agreement under this subsection

26  may exceed 5 years but may not exceed 20 10 years for energy

27  conservation measures pursuant to s. 489.145. The payment term

28  may not extend beyond the anticipated useful life of the

29  equipment financed.

30         (11)  For purposes of consolidated financing of

31  deferred payment commodity contracts under this section by a

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

 2  be supported from available recurring funds appropriated to

 3  the agency in an appropriation category, other than the

 4  expense appropriation category as defined in chapter 216, that

 5  the Chief Financial Officer has determined is appropriate or

 6  that the Legislature has designated for payment of the

 7  obligation incurred under this section.

 8         Section 25.  Section 489.145, Florida Statutes, is

 9  amended to read:

10         489.145  Guaranteed energy performance savings

11  contracting.--

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

13  "Guaranteed Energy Performance Savings Contracting Act."

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

15  investment in energy conservation measures in agency

16  facilities can reduce the amount of energy consumed and

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

18  this state to encourage agencies to invest in energy

19  conservation measures that reduce energy consumption, produce

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

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

22  when economically feasible, build or renovate existing agency

23  facilities in such a manner as to minimize energy consumption

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

25  state to encourage agencies to reinvest any energy savings

26  resulting from energy conservation measures in additional

27  energy conservation efforts.

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

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

30  political subdivision.

31  

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

 2  program, facility alteration, or equipment purchase to be used

 3  in new construction, including an addition to an existing

 4  facility, which reduces energy or energy-related operating

 5  costs and includes, but is not limited to:

 6         1.  Insulation of the facility structure and systems

 7  within the facility.

 8         2.  Storm windows and doors, caulking or

 9  weatherstripping, multiglazed windows and doors,

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

11  and door systems, additional glazing, reductions in glass

12  area, and other window and door system modifications that

13  reduce energy consumption.

14         3.  Automatic energy control systems.

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

16  modifications or replacements.

17         5.  Replacement or modifications of lighting fixtures

18  to increase the energy efficiency of the lighting system,

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

20  local building code.

21         6.  Energy recovery systems.

22         7.  Cogeneration systems that produce steam or forms of

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

24  within a facility or complex of facilities.

25         8.  Energy conservation measures that reduce Btu/KW

26  consumed and provide long-term operating cost reductions or

27  significantly reduce Btu consumed.

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

29  or wind systems.

30         10.  Devices that reduce water consumption or sewer

31  charges.

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

 2  storage.

 3         12.  Generating technologies, such as microturbines.

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

 5  existing equipment.

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

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

 8  operation and maintenance created from the implementation of

 9  one or more energy conservation measures when compared with an

10  established baseline for the previous cost of fuel, energy

11  consumption, and stipulated operation and maintenance.

12         (d)  "Guaranteed energy performance savings contract"

13  means a contract for the evaluation, recommendation, and

14  implementation of energy conservation measures or

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

16  minimum, shall include:

17         1.  The design and installation of equipment to

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

19  operation and maintenance of such measures.

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

21  or exceed total annual contract payments made by the agency

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

23  used in this section, allowable cost-avoidance calculations

24  include, but are not limited to, provable budgeted costs

25  avoided and contained in a capital replacement plan and the

26  current undepreciated value of replaced equipment subtracted

27  from the replacement cost of the new equipment.

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

29  life of the contract.

30         (e)  "Guaranteed energy performance savings contractor"

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

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

 2  analysis, design, implementation, or installation of energy

 3  conservation measures through energy performance contracts.

 4         (4)  PROCEDURES.--

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

 6  performance savings contract with a guaranteed energy

 7  performance savings contractor to significantly reduce energy

 8  consumption or energy-related operating costs of an agency

 9  facility through one or more energy conservation measures.

10         (b)  Before design and installation of energy

11  conservation measures, the agency must obtain from a

12  guaranteed energy performance savings contractor a report that

13  summarizes the costs associated with the energy conservation

14  measures or energy-related operational cost savings measures

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

16  savings. The agency and the guaranteed energy performance

17  savings contractor may enter into a separate agreement to pay

18  for costs associated with the preparation and delivery of the

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

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

21  savings being equal to or greater than the total projected

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

23  conservation measures.

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

25  performance savings contract with a guaranteed energy

26  performance savings contractor if the agency finds that the

27  amount the agency would spend on the energy conservation or

28  energy-related cost saving measures will not likely exceed the

29  amount of the energy or energy-related cost savings for up to

30  20 years from the date of installation, based on the life

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

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 1  recommendations in the report were followed and if the

 2  qualified provider or providers give a written guarantee that

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

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

 5  must meet or exceed the estimated cost savings provided in

 6  program approval. Baseline adjustments used in calculations

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

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

 9         (d)  A guaranteed energy performance savings contractor

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

11  fewer than three firms are qualified to perform the required

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

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

14  s. 287.057 do not apply.

15         (e)  Before entering into a guaranteed energy

16  performance savings contract, an agency must provide published

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

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

19  and the contract's purpose.

20         (f)  A guaranteed energy performance savings contract

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

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

23  separate from the energy performance contract.  A separate

24  contract for third party financing pursuant to this paragraph

25  must include a provision that the third party financier must

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

27  privileges available to the guaranteed energy performance

28  savings contractor.

29         (g)  Financing for guaranteed energy performance

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

31  287.064.

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 1         (h)(g)  In determining the amount the agency will

 2  finance to acquire the energy conservation measures, the

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

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

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

 6  energy performance savings contract. However, in calculating

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

 8  shall not apply any grants, rebates, or capital funding. The

 9  Office of the Chief Financial Officer shall review proposals

10  to ensure that the most effective financing is being used.

11         (5)  CONTRACT PROVISIONS.--

12         (a)  A guaranteed energy performance savings contract

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

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

15  or corporate guarantee by the guaranteed energy performance

16  savings contractor that annual energy cost savings will meet

17  or exceed the amortized cost of energy conservation measures.

18         (b)  The guaranteed energy performance savings contract

19  must provide that all payments, except obligations on

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

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

22  complete installation and acceptance by the agency, and that

23  the annual savings are guaranteed to the extent necessary to

24  make annual payments to satisfy the guaranteed energy

25  performance savings contract.

26         (c)  The guaranteed energy performance savings contract

27  must require that the guaranteed energy performance savings

28  contractor to whom the contract is awarded provide a

29  100-percent public construction bond to the agency for its

30  faithful performance, as required by s. 255.05.

31  

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 1         (d)  The guaranteed energy performance savings contract

 2  may contain a provision allocating to the parties to the

 3  contract any annual energy cost savings that exceed the amount

 4  of the energy cost savings guaranteed in the contract.

 5         (e)  The guaranteed energy performance savings contract

 6  shall require the guaranteed energy performance savings

 7  contractor to provide to the agency an annual reconciliation

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

 9  the reconciliation reveals a shortfall in annual energy or

10  energy-related cost savings, the guaranteed energy performance

11  savings contractor is liable for such shortfall. If the

12  reconciliation reveals an excess in annual energy cost

13  savings, the excess savings may be allocated under paragraph

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

15  shortages in subsequent contract years.

16         (f)  The guaranteed energy performance savings contract

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

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

19  complete installation and acceptance by the agency using

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

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

22  20-year term, based on life cycle cost calculations.

23         (g)  The guaranteed energy performance savings contract

24  may extend beyond the fiscal year in which it becomes

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

26  end of each fiscal year and may be automatically renewed

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

28  sufficient annual appropriations based upon continued realized

29  energy savings.

30  

31  

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 1         (h)  The guaranteed energy performance savings contract

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

 3  or obligation of the state.

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

 5  Department of Management Services, with the assistance of the

 6  Office of the Chief Financial Officer, may, within available

 7  resources, provide technical assistance to state agencies

 8  contracting for energy conservation measures and engage in

 9  other activities considered appropriate by the department for

10  promoting and facilitating guaranteed energy performance

11  contracting by state agencies. The Office of the Chief

12  Financial Officer, with the assistance of the Department of

13  Management Services shall, may, within available resources,

14  develop model contractual and related documents for use by

15  state agencies. Prior to entering into a guaranteed energy

16  performance savings contract, any contract or lease for

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

18  state agency shall submit such proposed contract or lease to

19  the Office of the Chief Financial Officer for review and

20  approval that includes the following:.

21         (a)  Supporting information required by s.

22  216.023(4)(a)9.

23         (b)  Documentation supporting recurring funds

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

25         (c)  Approval by agency head or designee.

26         (d)  An agency measurement and verification plan to

27  monitor costs savings.

28  

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

30  contract submitted under this section which does not meet the

31  

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 1  requirements of this section or which he or she finds not

 2  fiscally prudent for the state.

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

 4  $500,000 is appropriated from the General Revenue Fund to the

 5  Florida Alternative Energy Trust Fund for the purpose of

 6  funding the activities of the Florida Alternative Energy

 7  Technology Center for the 2007-2008 fiscal year.

 8         Section 27.  For the 2007-2008 fiscal year, the sum of

 9  $40 million is appropriated from the General Revenue Fund to

10  the Florida Alternative Energy Trust Fund for purposes of

11  funding the Alternative Energy Incentive Program.

12         Section 28.  For the 2007-2008 fiscal year, the sum of

13  $15 million is appropriated to the Florida Alternative Energy

14  Trust Fund for the purpose of funding the Renewable Energy

15  Technologies Grants Program.

16         Section 29.  For the 2007-2008 fiscal year, the sum of

17  $2.5 million is appropriated from the General Revenue Fund to

18  the Department of Environmental Protection for the purpose of

19  funding commercial and consumer solar incentives authorized in

20  s. 377.806, Florida Statutes.

21         Section 30.  For the 2007-2008 fiscal year, the sum of

22  $65,763 is appropriated from the General Revenue Fund to the

23  Department of Revenue for the purpose of administering the

24  energy-efficient products sales tax holiday.

25         Section 31.  Except as otherwise expressly provided in

26  this act, this act shall take effect upon becoming a law.

27  

28  

29  

30  

31  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 996

 3                                 

 4  The Committee Substitute For Senate Bill 996:

 5  - creates the Florida Alternative Energy Development
    Corporation to promote development of alternative energy
 6  technologies in this state;

 7  -creates the Alternative Energy Incentive Program, a research
    and economic development grant program to be operated by the
 8  Corporation,

 9  -transfers to the Corporation existing authority for
    development of alternative and renewable energy, for
10  administering existing economic incentives for renewable
    energy, and for making recommendations to the Legislature
11  concerning energy policy,

12  -creates a Renewable Portfolio Standard requiring that a 50
    percent of all new electricity provided by a public utility be
13  from renewable energy, as defined,

14  -creates the Florida Net Metering Conservation Act,

15  -requires the Department of Environmental Protection to
    develop greenhouse gas inventories,
16  
    -authorizes the Public Service Commission to review and
17  approve or deny proposed sales and transfers of utility
    assets, including in the context of a proposed merger or
18  acquisition of the utility,

19  -creates a refund of a portion of the sales tax on qualified
    alternative motor vehicle, and
20  
    - revises requirements relating to payment periods under
21  guaranteed energy-performance savings contracts, cost savings
    under such contracts, and review by the Chief Financial
22  Officer of proposed contracts.

23  

24  

25  

26  

27  

28  

29  

30  

31  

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