Senate Bill sb0996c2

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    Florida Senate - 2007                     CS for CS for SB 996

    By the Committees on Environmental Preservation and
    Conservation; Communications and Public Utilities; and
    Senators Bennett, Lynn, Fasano and Atwater



    592-2411-07

  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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 1         renewable energy resources, and create a

 2         database of all energy programs in the state;

 3         amending s. 212.08, F.S.; increasing the

 4         limitation on a tax exemption for materials

 5         used in the distribution of biodiesel and

 6         ethanol; clarifying the definition of the term

 7         "ethanol"; creating an annual tax holiday for

 8         energy-efficient products; defining the term

 9         "energy-efficient product"; authorizing the

10         Department of Revenue to adopt rules; requiring

11         the Florida Alternative Energy Development

12         Corporation rather than the Department of

13         Environmental Protection to certify eligibility

14         for the sales tax exemption for equipment,

15         technology, and other materials for renewable

16         energy; amending s. 213.053, F.S.; providing

17         for the Department of Revenue to provide

18         information to the Florida Alternative Energy

19         Development Corporation rather than the

20         Department of Environmental Protection for

21         purposes of administering the sales tax

22         exemption and the corporate income tax credit;

23         amending s. 220.192, F.S.; requiring the

24         Florida Alternative Energy Development

25         Corporation rather than the Department of

26         Environmental Protection to determine

27         eligibility for the corporate income tax

28         credits for investments in renewable energy

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

30         defining the term "corporation" for purposes of

31         the Florida Renewable Energy Technologies and

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 1         Energy Efficiency Act; amending s. 377.804,

 2         F.S.; providing for the Florida Alternative

 3         Energy Development Corporation rather than the

 4         Department of Environmental Protection to

 5         administer the Renewable Energy Technologies

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

 7         requiring the Florida Alternative Energy

 8         Development Corporation rather than the

 9         Department of Environmental Protection to

10         administer the Solar Energy Incentives Program;

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

12         Renewable Portfolio Standard Act; providing

13         legislative findings; providing definitions;

14         requiring public utilities to sell a minimum

15         amount of renewable energy; authorizing the

16         Public Service Commission to adopt rules;

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

18         "renewable energy"; creating s. 366.925, F.S.;

19         providing a short title; directing the Public

20         Service Commission to develop rules requiring

21         all public utilities to develop net-metering

22         programs; providing for a customer to receive

23         credit for electricity generated by renewable

24         energy systems owned by the customer; directing

25         the commission to adopt rules setting the

26         standards that renewable energy systems must

27         meet in order for customers to qualify for the

28         program; requiring every wholesaler of diesel

29         fuel to a marina within the state to offer

30         biodiesel for sale; creating s. 403.0874, F.S.;

31         requiring the Department of Environmental

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 1         Protection to conduct an inventory of

 2         greenhouse gas emissions; amending s. 366.04,

 3         F.S.; authorizing the Public Service Commission

 4         to review and approve sales and transfers of

 5         public utility assets, including in a merger;

 6         authorizing the commission to adopt rules;

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

 8         financial incentive for the purchase of an

 9         alternative motor vehicle; providing that any

10         person who purchases an alternative motor

11         vehicle from a sales tax dealer is eligible for

12         a refund of the sales tax paid; requiring that

13         the alternative motor vehicle be certified

14         under the Internal Revenue Code of 1986, as

15         amended, as a new qualified hybrid motor

16         vehicle, new qualified alternative fuel motor

17         vehicle, new qualified fuel cell motor vehicle,

18         or new advanced lean-burn technology motor

19         vehicle; requiring that an application for

20         refund be filed with the Department of Revenue;

21         providing that the total dollar amount of

22         refunds is limited to the total amount of

23         appropriations in any fiscal year; authorizing

24         a request for a refund to be held for payment

25         in the following fiscal year under certain

26         circumstances; requiring the department to

27         adopt rules; providing for future repeal of the

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

29         an inventory of state-owned buildings and an

30         energy efficiency project schedule for

31         guaranteed energy-performance savings contract

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

 2         requiring that the term of payment for

 3         consolidated equipment finance contracts may

 4         not extend beyond the anticipated useful life

 5         of the equipment financed; deleting the

 6         requirement that the Chief Financial Officer

 7         establish criteria that prohibits a state

 8         agency from obligating an annualized amount of

 9         payments for certain deferred payment

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

11         the period of time allowed for repayment of

12         funds under the guaranteed energy-performance

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

14         clarifying certain definitions; providing

15         additional requirements for a state agency to

16         enter into a guaranteed energy-performance

17         savings contract; providing for financing of

18         contracts related to guaranteed

19         energy-performance savings; requiring the

20         Department of Financial Services to review

21         proposals to ensure that the most effective

22         financing is used; requiring the Office of the

23         Chief Financial Officer to develop model

24         contractual and related documents; requiring

25         that contracts or leases submitted by a state

26         agency to the Office of Chief Financial Officer

27         meet certain criteria; amending s. 366.93,

28         F.S.; revising definitions related to certain

29         power plants to include integrated gasification

30         combined cycle power plants; requiring the

31         Public Service Commission to implement rules

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 1         related to integrated gasification combined

 2         cycle power plant cost recovery; requiring a

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

 4         requirements and procedures for determination

 5         of need for integrated gasification combined

 6         cycle power plants; providing an exemption from

 7         purchased power supply bid rules under certain

 8         circumstances; requiring a study, rulemaking,

 9         and a report by the Department of Community

10         Affairs; amending s. 287.151, F.S.; providing

11         definitions; providing a schedule of deadlines

12         by which certain percentages of the vehicles

13         purchased by a state agency, state university,

14         or local government within the 12 months

15         immediately preceding each deadline must be

16         hybrid, flex-fuel, biodiesel, or compressed

17         natural gas vehicles; providing that all

18         vehicles purchased by such entities after July

19         1, 2011, must be hybrid, flex-fuel, biodiesel,

20         or compressed natural gas vehicles; providing

21         appropriations; providing effective dates.

22  

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

24  

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

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

27         288.10894  Florida Alternative Energy Development

28  Corporation; findings; creation; membership; organization;

29  purpose; duties; powers.--

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

31  interest to promote alternative energy technologies in this

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 1  state, including alternative fuels and technologies for

 2  electric power plants and motor vehicles, energy conservation,

 3  distributed generation, advanced transmission methods, and

 4  pollution and greenhouse gas control. Both Florida and the

 5  United States in general are overly dependent on foreign oil

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

 7  Alternative energy and energy conservation technologies have

 8  the potential to decrease this dependency, minimize volatility

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

10  research, development, deployment, and use of these

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

12  technologies and encourage investment and economic development

13  in this state.

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

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

16  Development Corporation.

17         (b)  "Alternative energy" means energy technologies

18  that are undeveloped or less than established in current

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

20  agricultural products and byproducts; municipal solid waste,

21  including landfill injection, landfill mining, and landfill

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

23  ocean energy, including wave or thermal; hydrogen fuel; fuel

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

25  appliance efficiency technologies; enhancements to the

26  transmission of electricity, including advanced transmission

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

28  synthetic fuels; and technologies relating to impacts of

29  pollutants and greenhouse gases.

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

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

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 1  Alternative Energy Development Corporation." It is declared to

 2  be the intent of and constitutional construction by the

 3  Legislature that the Florida Alternative Energy Development

 4  Corporation constitutes an entrepreneurial public corporation

 5  organized to provide and promote the public welfare by

 6  administering the governmental function of promoting the

 7  development of alternative energy in Florida and that the

 8  corporation is not a department of the executive branch of

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

10  of the State Constitution, and is not functionally located

11  within any state agency or department.

12         (b)  The corporation is constituted as a public

13  instrumentality, and the exercise by the corporation of the

14  power conferred by this act is considered to be the

15  performance of an essential public function. The corporation

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

17  corporation is subject to chapter 119, subject to exceptions

18  applicable to the corporation, and to the provisions of

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

20  provide notice of internal review committee meetings for

21  competitive proposals or procurement to applicants by mail or

22  facsimile rather than by means of publication. The corporation

23  is not governed by chapter 607, but by the provisions of this

24  section. If for any reason the establishment of the

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

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

27  and effect.

28         (c)  The corporation is a corporation primarily acting

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

30  768.28.

31  

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 1         (4)  The corporation is the principal organization in

 2  the state for promotion of alternative energy technology. Its

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

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

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

 6  accomplish these goals by consolidating in-state resources and

 7  activities into a unified forum to better coordinate,

 8  facilitate, and fund research, development, deployment, and

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

10  limited resources, the corporation should focus on projects

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

12  decisions concerning research, development, or deployment

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

14  corporation should determine which of the following elements

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

16  achieve the greatest benefit with respect to research and

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

18  consumers. More specifically, the corporation shall:

19         (a)  Bring together existing resources by:

20         1.  Assisting in the integration of state-government

21  energy programs.

22         2.  Developing an information exchange system,

23  including:

24         a.  Creating a computer database, accessible by any

25  interested person, by gathering and indexing all information

26  concerning activities in this state related to programs of

27  alternative energy technology research, development, and

28  deployment in universities, at all levels of government

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

30  current index and profile of all research activities,

31  identified by alternative energy technology area, including a

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

 2  anticipated completion dates, or, in case of completed

 3  research, the conclusions, recommendations, and applicability

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

 5         b.  Developing an interactive electronic information

 6  point where interested persons can find information and

 7  connect with other interested persons.

 8         c.  Holding conferences for the purpose of providing

 9  additional information exchange and educating the public.

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

11  programs, including developing an application program to

12  determine awards of those grants and outlays, and assist

13  interested persons in obtaining additional funding for

14  alternative energy technology projects.

15         (c)  Explore the problems faced by those developing

16  technology in Florida and determine where the problems lie,

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

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

19  assist in resolving these problems.

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

21  promote the state as a location for businesses having

22  operations related to alternative energy technologies.

23         (e)  Develop recommendations for legislation to

24  establish a state energy policy. The corporation shall

25  continually review the state energy policy and recommend to

26  the Legislature any additional necessary changes or

27  improvements. The recommendations of the corporation shall be

28  based on the guiding principles of reliability, efficiency,

29  affordability, and diversity, and more specifically on the

30  following principles:

31  

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 1         1.  The state should have a reliable electric supply

 2  with adequate reserves.

 3         2.  The transmission and delivery of electricity should

 4  be reliable.

 5         3.  The generation, transmission, and delivery of

 6  electricity should be accomplished with the least detriment to

 7  the environment and public health.

 8         4.  The generation, transmission, and delivery of

 9  electricity should be accomplished compatibly with the goals

10  of growth management.

11         5.  Electricity generation, transmission, and delivery

12  facilities should be reasonably secure from damage, taking all

13  factors into consideration, and recovery from damage should be

14  prompt.

15         6.  Electric rates should be affordable as to base

16  rates and all recovery-clause additions, with sufficient

17  incentives for utilities to achieve this goal.

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

19  vehicle fuels under normal circumstances and during hurricanes

20  and other emergency situations.

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

22  alternative energy technologies and alternative motor vehicle

23  fuels should be encouraged.

24         9.  When possible, the resources of the state should be

25  used in achieving the goals enumerated in this subsection.

26         10.  Consumers of energy should be encouraged and given

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

28  

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

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

31  responsibilities of the Public Service Commission or the

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 1  powers, duties, and responsibilities assigned by the Florida

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

 3         (5)  The corporation shall establish one or more

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

 5  Leon County.

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

 7  directors consisting of the following members:

 8         (a)  The Governor or his or her designee.

 9         (b)  The Commissioner of Agriculture or his or her

10  designee.

11         (c)  The Chief Financial Officer or his or her

12  designee.

13         (d)  The Attorney General or his or her designee.

14         (e)  A member appointed by the President of the Senate.

15         (f)  A member appointed by the Speaker of the House of

16  Representatives.

17         (g)  The chairman of the Florida Public Service

18  Commission or his or her designee.

19         (h)  The president of Enterprise Florida, Inc., or his

20  or her designee.

21         (i)  A representative from the State Board of

22  Education, selected by the members of that board.

23         (j)  For one initial term, the current chairman of the

24  Florida Energy Commission and one other member of that

25  commission to be selected by the commission members.

26         (k)  Any additional board members selected by a

27  consensus of all existing members of the governing board to

28  assist the corporation in carrying out its functions and

29  duties under this section.

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

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

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

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

 3  vice chairperson biennially, upon selection of any new

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

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

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

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

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

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

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

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

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

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

14  quorum is present.

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

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

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

18  as determined by the board.

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

20  otherwise required to file a financial disclosure pursuant to

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

22  file a disclosure of financial interests pursuant to s.

23  112.3145.

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

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

26  compensation. The president is the chief administrative and

27  operational officer of the board of directors and of the

28  corporation, and shall direct and supervise other employees in

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

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

31  and commissions may provide such services to the corporation

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

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

 3  Governor may temporarily transfer to the corporation any

 4  officers or employees as are considered necessary from time to

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

 6  functions and duties under this section. Officers and

 7  employees so transferred do not lose their career service,

 8  select exempt, or senior management status or rights.

 9         (14)  The corporation shall receive funding from the

10  state through the Florida Alternative Energy Development

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

12  directors, officers, and employees of the corporation are

13  responsible for the prudent use of all public and private

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

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

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

17  functions, the corporation shall take all possible steps to

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

19  duties, the corporation shall establish strategic priorities,

20  consistent with this section, to guide funding and resource

21  allocations and ensure the best use of available resources.

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

23  submit an annual report to the Governor, the Commissioner of

24  Agriculture, the Chief Financial Officer, the Attorney

25  General, the President of the Senate, and the Speaker of the

26  House of Representatives containing:

27         (a)  A detailed description of the corporation's

28  activities and accomplishments for the year.

29         (b)  A certified audit by an independent public

30  accountant of resources and expenditures prepared by an

31  independent certified public accountant.

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

 2  priorities and an explanation of their use in guiding resource

 3  allocations.

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

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

 6         288.10895  Alternative Energy Incentive Program.--

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

 8  Program is created and shall be operated by the Florida

 9  Alternative Energy Development Corporation. The program shall

10  encourage economic development and research and development in

11  the state which will commercialize alternative energy

12  innovations and develop new alternative energy manufacturing,

13  blending, power generation, and distribution facilities.

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

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

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

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

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

19  hydro, wind, or geothermal.

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

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

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

23  metropolitan area in which the project is located as

24  determined by the Agency for Workforce Innovation.

25         (c)  "Commission" means the Administration Commission,

26  as set forth in s. 14.202.

27         (d)  "Corporation" means the Florida Alternative Energy

28  Development Corporation.

29         (e)  "Jobs" means full-time equivalent positions, as

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

31  Workforce Innovation and the United States Department of Labor

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 1  for purposes of unemployment compensation tax administration

 2  and employment estimation, resulting directly from a project

 3  in this state. The term does not include temporary

 4  construction jobs.

 5         (f)  "Match" or "matching funds" means actual cash

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

 7  outlays for wages, rental expenses, travel expenses,

 8  unrecovered indirect costs, and purchases of material and

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

10  contributions necessary and reasonable for proper and

11  efficient accomplishment of project objectives. The value of

12  noncash contributions shall be established using the following

13  guidelines:

14         1.  Rates for donated or volunteer services of any

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

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

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

18  of fringe benefits.

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

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

21  market value of the property.

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

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

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

25  of comparable space and facilities in a privately owned

26  building in the same locale.

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

28  fair rental value.

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

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

31  

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

 2  Alternative Energy Development Corporation.

 3         (3)  ALTERNATIVE ENERGY BUSINESS PROJECT.--

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

 5  or expansion in this state of a business that grows, harvests,

 6  and processes feedstock or other raw materials used in the

 7  creation of alternative energy; manufactures, blends, or

 8  distributes alternative energy; generates power for sale in

 9  this state from an alternative energy source; or develops new

10  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 that grows, harvests, and

 2  processes feedstock or other raw materials in this state which

 3  are then used in the production of alternative energy or is

 4  the activity or product that uses such feedstock or other raw

 5  materials grown or produced in this state;

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

 7  within a 5-year period; or

 8         d.  Incorporates an innovative new technology or an

 9  innovative application of an existing technology.

10         (4)  ALTERNATIVE ENERGY RESEARCH AND DEVELOPMENT

11  PROJECT.--

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

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

14  the sciences or engineering and that relates to the

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

16  existing alternative energy technologies. A research and

17  development project does not include market research, routine

18  consumer product testing, sales research, research in the

19  social sciences or psychology, nontechnological activities, or

20  technical services.

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

22  Alternative Energy Incentive Program, a research and

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

24  satisfaction of the corporation that:

25         1.  The research and development project will be

26  located in this state;

27         2.  The jobs created by the research and development

28  project will pay an estimated annual average wage that equals

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

30  average wage requirement may be waived if the corporation

31  

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 1  determines that the merits of the individual project or the

 2  specific circumstances warrant such action;

 3         3.  The research and development project includes

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

 5  university or research institution, the local community, or

 6  other available sources. The match requirement may be waived

 7  if the corporation determines that the merits of the

 8  individual project or the specific circumstances warrant such

 9  action;

10         4.  The research and development project includes a

11  plan for significant collaboration with a higher education

12  institution in the state; and

13         5.  The research and development project includes a

14  plan for the commercialization of the research through direct

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

16  licensing of new technology to Florida-based businesses that

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

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

19  research and development project applicant must submit a

20  written application to the corporation showing how the award

21  would support the location of new operations in this state or

22  the expansion of an existing operation in this state. The

23  application must include, but need not be limited to:

24         (a)  The applicant's federal employer identification

25  number, unemployment account number, state sales tax

26  registration number, or related documentation. If such numbers

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

28  be submitted to the corporation in writing before the

29  disbursement of any payments under this section.

30  

31  

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

 2  project or the research and development project is located or

 3  is to be located.

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

 5  product, or research and development undertaken by the

 6  applicant, including six-digit North American Industry

 7  Classification System codes for all activities included in the

 8  project.

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

10  business project or the research and development project.

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

12  business project or the research and development project.

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

14  this state the applicant anticipates having created as of

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

16  research and development project and the average annual wage

17  of such jobs.

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

19  currently employed by the applicant in this state, if

20  applicable.

21         (h)  The anticipated commencement date of the business

22  project or the research and development project.

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

24  Alternative Energy Incentive Program is needed to induce the

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

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

27  state.

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

29  the revenues resulting from the business project or the

30  research and development project which will be generated

31  outside this state.

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 1         (k)  A recommendation for specific performance criteria

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

 3  payments from the fund and penalties or sanctions for failure

 4  to meet or maintain performance conditions.

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

 6  research and development project to stimulate additional

 7  investment and employment opportunities that equal or exceed

 8  130 percent of the average private-sector wage.

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

10  and development project:

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

12  form of alternative energy.

13         2.  Has or could have a significant collaborative

14  research and development relationship with one or more

15  universities or community colleges in this state.

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

17  transferred or licensed to Florida-based businesses.

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

19  proposed amount of an award for any applicant meeting the

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

21  corporation shall consider the amount of the incentive needed

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

23  conjunction with other relevant effect and cost information

24  and analysis as described in this section.

25         (7)  RECOMMENDATION.--After fully considering all of

26  the criteria identified in this section and completing the

27  evaluation, the president shall recommend to the commission

28  the approval or disapproval of an award. In recommending

29  approval of an award, the president shall include proposed

30  performance conditions that the applicant must meet in order

31  to obtain incentive funds and any other conditions that must

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 1  be met before the receipt of any incentive funds. The

 2  commission shall consult with the President of the Senate and

 3  the Speaker of the House of Representatives before giving

 4  approval for an award. Upon approval of an award, the

 5  Executive Office of the Governor shall release the funds

 6  pursuant to the legislative consultation and review

 7  requirements set forth in s. 216.177.

 8         (8)  CERTIFICATION.--Upon approval by the commission

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

10  president shall issue a letter certifying the applicant as

11  qualified for an award. The corporation and the applicant

12  shall enter into an agreement that sets forth the conditions

13  for payment of funds under the Alternative Energy Incentive

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

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

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

17  methodology for validating performance, the schedule of

18  payments, and sanctions for failure to meet performance

19  conditions, including any clawback provisions.

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

21  performance of business projects and research and development

22  projects that have received an award under the Alternative

23  Energy Incentive Program. At the conclusion of an award

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

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

26  Alternative Energy Incentive Program to the members of the

27  commission, the President of the Senate, and the Speaker of

28  the House of Representatives.

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

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

31  amended to read:

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 1         377.703  Additional functions of the Department of

 2  Environmental Protection; energy emergency contingency plan;

 3  federal and state conservation programs.--

 4         (3)  DEPARTMENT OF ENVIRONMENTAL PROTECTION;

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

 6  addition to assuming the duties and responsibilities provided

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

 8  consistent with the development of a state energy policy:

 9         (a)  The department shall assume the responsibility for

10  development of an energy emergency contingency plan to respond

11  to serious shortages of primary and secondary energy sources.

12  Upon a finding by the Governor, implementation of any

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

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

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

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

17  by instituting the appropriate measures of the contingency

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

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

20  out any emergency actions required by a serious shortage of

21  energy sources.

22         (b)  The department shall constitute the responsible

23  state agency for performing or coordinating the functions of

24  any federal energy programs delegated to the state, including

25  energy supply, demand, conservation, or allocation.

26         (c)  The department shall analyze present and proposed

27  federal energy programs and make recommendations regarding

28  those programs to the Governor.

29         (d)  The department shall coordinate efforts to seek

30  federal support or other support for state energy conservation

31  activities, including energy conservation, research, or

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

 2  coordination of multiagency energy conservation programs and

 3  plans.

 4         (e)  The department shall analyze energy data collected

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

 6  in coordination with the Florida Public Service Commission,

 7  which shall have responsibility for electricity and natural

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

 9         1.  An analysis of the relationship of state economic

10  growth and development to energy supply and demand, including

11  the constraints to economic growth resulting from energy

12  supply constraints.

13         2.  Plans for the development of renewable energy

14  resources and reduction in dependence on depletable energy

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

16  of the extent to which renewable energy sources are being

17  utilized in the state.

18         3.  Consideration of alternative scenarios of statewide

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

20  strategies for long-range action, including identification of

21  potential social, economic, and environmental effects.

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

23  including examination of the availability of commercially

24  developable and imported fuels, and an analysis of anticipated

25  effects on the state's environment and social services

26  resulting from energy resource development activities or from

27  energy supply constraints, or both.

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

29  requested by the Governor or the Legislature, reflecting its

30  activities and making recommendations of policies for

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

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

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

 3  the Florida Public Service Commission on electricity and

 4  natural gas and information on energy conservation programs

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

 6  recommendations for energy conservation programs for the

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

 8         1.  Formulation of specific recommendations for

 9  improvement in the efficiency of energy utilization in

10  governmental, residential, commercial, industrial, and

11  transportation sectors.

12         2.  Collection and dissemination of information

13  relating to energy conservation.

14         3.  Development and conduct of educational and training

15  programs relating to energy conservation.

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

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

18  and recommendations for better fulfilling this policy.

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

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

21  provisions of this act.

22         (h)  Promote the development and use of renewable

23  energy resources, in conformance with the provisions of

24  chapter 187 and s. 377.601, by:

25         1.  Establishing goals and strategies for increasing

26  the use of solar energy in this state.

27         2.  Aiding and promoting the commercialization of solar

28  energy technology, in cooperation with the Florida Solar

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

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

31  

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 1  promote research, development, and demonstration of solar

 2  energy equipment and technology.

 3         3.  Identifying barriers to greater use of solar energy

 4  systems in this state, and developing specific recommendations

 5  for overcoming identified barriers, with findings and

 6  recommendations to be submitted annually in the report to the

 7  Legislature required under paragraph (f).

 8         4.  In cooperation with the Department of

 9  Transportation, the Department of Community Affairs,

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

11  the Florida Solar Energy Industries Association, investigating

12  opportunities, pursuant to the National Energy Policy Act of

13  1992 and the Housing and Community Development Act of 1992,

14  for solar electric vehicles and other solar energy

15  manufacturing, distribution, installation, and financing

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

17  in solar energy research, development, and use.

18         5.  Undertaking other initiatives to advance the

19  development and use of renewable energy resources in this

20  state.

21  

22  In the exercise of its responsibilities under this paragraph,

23  the department shall seek the assistance of the solar energy

24  industry in this state and other interested parties and is

25  authorized to enter into contracts, retain professional

26  consulting services, and expend funds appropriated by the

27  Legislature for such purposes.

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

29  conservation in all energy use sectors throughout the state

30  and shall constitute the state agency primarily responsible

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

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 1  coordinate the energy conservation programs of all state

 2  agencies and review and comment on the energy conservation

 3  programs of all state agencies.

 4         (j)  The department shall serve as the state

 5  clearinghouse for indexing and gathering all information

 6  related to energy programs in state universities, in private

 7  universities, in federal, state, and local government

 8  agencies, and in private industry and shall prepare and

 9  distribute such information in any manner necessary to inform

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

11  activities. This shall include developing and maintaining a

12  current index and profile of all research activities, which

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

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

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

16  conclusions, recommendations, and applicability to state

17  government and private sector functions. The department shall

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

19  the economy to seek financial support for energy activities.

20  The department shall provide information to consumers

21  regarding the anticipated energy-use and energy-saving

22  characteristics of products and services in coordination with

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

24  provide such information to consumers.

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

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

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

28  department shall:

29         1.  Provide assistance to other state agencies,

30  counties, municipalities, and regional planning agencies to

31  further and promote their energy planning activities.

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 1         2.  Require, in cooperation with the Department of

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

 3  and state-leased buildings in accordance with energy

 4  conservation standards as adopted by the Department of

 5  Management Services. Every 3 months, the Department of

 6  Management Services shall furnish the department data on

 7  agencies' energy consumption in a format mutually agreed upon

 8  by the two departments.

 9         3.  Promote the development and use of renewable energy

10  resources, energy efficiency technologies, and conservation

11  measures.

12         4.  Promote the recovery of energy from wastes,

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

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

15  of manufactured products. Such promotion shall be conducted in

16  conjunction with, and after consultation with, the Department

17  of Environmental Protection, the Florida Public Service

18  Commission where electrical generation or natural gas is

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

20  governmental agency having responsibility for resource

21  recovery programs.

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

23  promote a comprehensive research plan for state programs. Such

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

25  updated on a biennial basis.

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

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

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

29  and the potential for such impacts caused by other natural

30  disasters, the department shall include in its energy

31  emergency contingency plan and provide to the Department of

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 1  Community Affairs for inclusion in the state model energy

 2  efficiency building code specific provisions to facilitate the

 3  use of cost-effective solar energy technologies as emergency

 4  remedial and preventive measures for providing electric power,

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

 6  electric power outages.

 7         Section 4.  Effective July 1, 2007, paragraph (ccc) of

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

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

10  read:

11         212.08  Sales, rental, use, consumption, distribution,

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

13  the rental, the use, the consumption, the distribution, and

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

15  following are hereby specifically exempt from the tax imposed

16  by this chapter.

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

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

19  that is otherwise taxable under this chapter when payment is

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

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

22  card, even when that representative or employee is

23  subsequently reimbursed by the entity. In addition, exemptions

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

25  transaction that is otherwise taxable under this chapter

26  unless the entity has obtained a sales tax exemption

27  certificate from the department or the entity obtains or

28  provides other documentation as required by the department.

29  Eligible purchases or leases made with such a certificate must

30  be in strict compliance with this subsection and departmental

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

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 1  certificate that is not in strict compliance with this

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

 3  The department may adopt rules to administer this subsection.

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

 5  renewable energy technologies.--

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

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

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

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

10  biodiesel and biodiesel blends with petroleum products as

11  adopted by the Department of Agriculture and Consumer

12  Services. Biodiesel may refer to biodiesel blends designated

13  BXX, where XX represents the volume percentage of biodiesel

14  fuel in the blend.

15         b.  "Ethanol" means nominally anhydrous denatured

16  alcohol produced by the conversion of carbohydrates

17  fermentation of plant sugars meeting the specifications for

18  fuel ethanol and fuel ethanol blends with petroleum products

19  as adopted by the Department of Agriculture and Consumer

20  Services. Ethanol may refer to fuel ethanol blends designated

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

22  in the blend.

23         c.  "Hydrogen fuel cells" means equipment using

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

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

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

27  exempt from the tax imposed by this chapter:

28         a.  Hydrogen-powered vehicles, materials incorporated

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

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

31  all taxpayers.

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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 5.  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 conversion of carbohydrates 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 6.  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 7.  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 8.  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 9.  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 10.  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 11.  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 12.  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 13.  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 14.  Effective July 1, 2007, section 366.925,

 2  Florida Statutes, is created to read:

 3         366.925  Electric utilities; net metering.--

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

 5  Metering Conservation Act."

 6         (2)  The commission shall develop rules requiring all

 7  public utilities to develop net-metering programs that meet

 8  the requirements of this subsection. Each utility shall make

 9  available meters that measure both energy production and

10  consumption by the customer. The customer shall receive credit

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

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

13  the customer consumes during a billing cycle, the utility

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

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

16         (3)  The commission shall develop rules setting the

17  interconnection requirements and other standards that

18  renewable energy systems must meet in order to ensure public

19  safety and reliability for customers who participate in the

20  net-metering program.

21         Section 15.  Effective July 1, 2007, every wholesaler

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

23  for sale.

24         Section 16.  Effective July 1, 2007, section 403.0874,

25  Florida Statutes, is created to read:

26         403.0874  Greenhouse gas inventories.--

27         (1)  The department shall develop greenhouse gas

28  inventories that account for annual greenhouse gases emitted

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

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

31  greenhouse gases and for time periods that are determined

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 1  sufficient by the department to provide for adequate analysis

 2  and planning.

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

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

 5  criteria for defining major emitters, which emitters must

 6  report emissions, and what methodologies shall be used to

 7  estimate gases emitted into and removed from the atmosphere

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

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

10  defined greenhouse gases to report emissions according to

11  methodologies and reporting systems approved by the department

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

13  quality-assured data from continuous emissions-monitoring

14  systems.

15         Section 17.  Effective July 1, 2007, subsection (2) of

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

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

18         366.04  Jurisdiction of commission.--

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

20  commission shall have power over electric utilities for the

21  following purposes:

22         (a)  To prescribe uniform systems and classifications

23  of accounts.

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

25  utilities.

26         (c)  To require electric power conservation and

27  reliability within a coordinated grid, for operational as well

28  as emergency purposes.

29         (d)  To approve territorial agreements between and

30  among rural electric cooperatives, municipal electric

31  utilities, and other electric utilities under its

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 1  jurisdiction.  However, nothing in this chapter shall be

 2  construed to alter existing territorial agreements as between

 3  the parties to such agreements.

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

 5  own motion, any territorial dispute involving service areas

 6  between and among rural electric cooperatives, municipal

 7  electric utilities, and other electric utilities under its

 8  jurisdiction. In resolving territorial disputes, the

 9  commission may consider, but not be limited to consideration

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

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

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

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

14  reasonably foreseeable future requirements of the area for

15  other utility services.

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

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

18  necessary to exercise its jurisdiction hereunder.

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

20  transfers of utility assets, including a proposed merger or

21  acquisition of the utility.

22  

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

24  impede, prevent, or prohibit any municipally owned electric

25  utility system from distributing at retail electrical energy

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

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

28  not be altered or abridged hereby.

29         (7)  The commission may establish rules and standards

30  of conduct to insulate and protect the public from business

31  practices and merger activity that would adversely affect the

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

 2  public utilities. The commission has specific authority to

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

 4  public utility and another entity or a public utility's

 5  affiliated parent or holding company and another entity. As

 6  used in this subsection, the term "assets" includes, but is

 7  not limited to, real assets, financial assets, construction

 8  work in progress, and allowances for funds used during

 9  construction. However, the commission may establish by rule

10  minimum levels of value of asset transfer which shall be

11  deemed immaterial because the amount involved would not

12  adversely affect the utility and therefore is not subject to

13  this subsection. In the exercise of this jurisdiction, the

14  commission has the powers set forth in this subsection.

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

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

17  includes a restriction against using utility assets as

18  collateral or a guarantee for any nonutility business. A

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

20  without first obtaining the commission's approval:

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

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

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

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

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

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

27  to maintain and operate such regulated public utility or

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

29  utility;

30         2.  Mortgage or otherwise encumber the whole or any

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

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

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

 3  and operate such public utility or public utility property or

 4  to perform any service as a public utility; or

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

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

 7  systems, or other property whatsoever, including any

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

 9  utility property or to perform any service as a public

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

11  

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

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

14  may occur prior to commission approval if the contract for

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

16  commission approval.

17         (b)  A merger or combination affecting any public

18  utility, affiliated parent, or holding company may not occur

19  through acquisition or control by stock purchase or otherwise

20  without the approval of the commission and a determination

21  that the proposed merger or combination affecting any public

22  utility through acquisition or control by stock purchase or

23  otherwise is in the public interest and will fulfill the

24  commitments, obligations, and representations of the public

25  utility. However, a merger or combination affecting any public

26  utility made through acquisition or control by stock purchase

27  or otherwise may occur prior to the commission's approval if

28  such action is made contingent upon commission approval.

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

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

31  

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 1         1.  The transaction will adversely affect the adequacy,

 2  efficiency, and reliability of the electric service that is

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

 4         2.  The transaction will result in increased cost of

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

 6  end-use customers without offsetting benefits;

 7         3.  The transaction will harm the financial condition

 8  of the public utility; and

 9         4.  Comparable economic savings can be achieved through

10  other means, including no transaction, while avoiding the

11  possible adverse consequences of the proposed transaction.

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

13  modification of any request submitted under this subsection. A

14  public utility seeking review under this subsection shall file

15  a petition with the commission coincident with or prior to

16  filing a similar petition to the Federal Energy Regulatory

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

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

19  petition, the public utility shall file direct testimony and

20  supporting documents at the time the initial petition is

21  submitted to the commission.

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

23  subsection, including setting material asset value thresholds.

24         Section 18.  Section 212.086, Florida Statutes, is

25  created to read:

26         212.086  Energy Efficient Motor Vehicle Sales Tax

27  Refund Program.--

28         (1)  The Energy Efficient Motor Vehicle Sales Tax

29  Refund Program is established to provide financial incentives

30  for the purchase of alternative motor vehicles as specified by

31  this section.

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 1         (2)  Any person who purchases an alternative motor

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

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

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

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

 6  price of $15,000.

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

 8  this section, the alternative motor vehicle must be certified

 9  as a new qualified hybrid motor vehicle, new qualified

10  alternative fuel motor vehicle, new qualified fuel cell motor

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

12  the Internal Revenue Service for the income tax credit for

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

14  Revenue Code of 1986, as amended.

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

16  application for refund must be filed with the department

17  within 90 days after purchase of the alternative motor vehicle

18  and must contain the following:

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

20  refund.

21         (b)  A specific description of the alternative motor

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

23  identification number.

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

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

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

27  alternative motor vehicle was purchased.

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

29  accurate and that the requirements of this section have been

30  met.

31  

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

 2  the department is limited to the total amount of

 3  appropriations in any fiscal year for this program. The

 4  department may approve refunds up to the amount appropriated

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

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

 7  funds are insufficient during the current fiscal year, any

 8  requests for refund received during that fiscal year may be

 9  processed during the following fiscal year, subject to the

10  appropriation, and have priority over new applications for

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

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

13  for payment in the following fiscal year.

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

15  120.536(1) and 120.54 to administer this section, including

16  rules establishing forms and procedures for claiming this

17  refund.

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

19  212.08(7)(ccc) may not be allowed a refund provided in this

20  section.

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

22         Section 19.  For the 2007-2008 fiscal year, the sum of

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

24  the Administrative Trust Fund of the Department of Revenue for

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

26  act.

27         Section 20.  Subsection (5) is added to section

28  255.252, Florida Statutes, to read:

29         255.252  Findings and intent.--

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

31  of all state-owned buildings within its inventory which it

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 1  determines are suitable to consider for a guaranteed

 2  energy-performance savings contract pursuant to s. 489.145.

 3  Such list shall be submitted to the Department of Management

 4  Services by December 31, 2007, and shall include any criteria

 5  used to determine suitability. The list of suitable buildings

 6  shall be developed from the list of state-owned facilities of

 7  more than 5,000 square feet in area for which the agency pays

 8  for the expenses of utilities and other operating expenses as

 9  they relate to energy use. In consultation with each

10  department secretary or director, by March 1, 2008, the

11  Department of Management Services shall evaluate each agency's

12  facilities found suitable for energy conservation projects,

13  and shall develop an energy efficiency project schedule based

14  on factors such as project magnitude, efficiency and

15  effectiveness of energy conservation measures to be

16  implemented, and other factors that may be advantageous to

17  pursue. Such schedule shall provide the deadline for

18  guaranteed energy-performance savings contract improvements to

19  be made to the state-owned buildings.

20         Section 21.  Paragraph (b) of subsection (2) and

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

22  amended to read:

23         287.063  Deferred-payment commodity contracts; preaudit

24  review.--

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

26  rule, criteria for approving purchases made under

27  deferred-payment contracts which require the payment of

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

29  following provisions:

30         1.  No contract shall be approved in which interest

31  exceeds the statutory ceiling contained in this section.

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 1  However, the interest component of any master equipment

 2  financing agreement entered into for the purpose of

 3  consolidated financing of a deferred-payment, installment

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

 5  interest rate limitation of this section so long as the

 6  interest component of every interagency agreement under such

 7  master equipment financing agreement complies with the

 8  interest rate limitation of this section.

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

10  shall be approved, unless it can be satisfactorily

11  demonstrated and documented to the Chief Financial Officer

12  that failure to make such deferred-payment purchase would

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

14  However, the Chief Financial Officer may approve any

15  deferred-payment purchase if the Chief Financial Officer

16  determines that such purchase is economically beneficial to

17  the state.

18         3.  No agency shall obligate an annualized amount of

19  payments for deferred-payment purchases in excess of current

20  operating capital outlay appropriations, unless specifically

21  authorized by law or unless it can be satisfactorily

22  demonstrated and documented to the Chief Financial Officer

23  that failure to make such deferred-payment purchase would

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

25         3.4.  No contract shall be approved which extends

26  payment beyond 5 years, unless it can be satisfactorily

27  demonstrated and documented to the Chief Financial Officer

28  that failure to make such deferred-payment purchase would

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

30  The payment term may not exceed the useful life of the

31  equipment unless the contract provides for the replacement or

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 1  the extension of the useful life of the equipment during the

 2  term of the loan.

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

 4  amount of any such deferred payment commodity contract must be

 5  supported from available recurring funds appropriated to the

 6  agency in an appropriation category, other than the expense

 7  appropriation category as defined in chapter 216, that the

 8  Chief Financial Officer has determined is appropriate or that

 9  the Legislature has designated for payment of the obligation

10  incurred under this section.

11         Section 22.  Subsections (10) and (11) of section

12  287.064, Florida Statutes, are amended to read:

13         287.064  Consolidated financing of deferred-payment

14  purchases.--

15         (10)  Costs incurred pursuant to a guaranteed energy

16  performance savings contract, including the cost of energy

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

18  financed pursuant to a master equipment financing agreement;

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

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

21  drawn pursuant to the master equipment financing agreement

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

23  10 years for energy conservation measures pursuant to s.

24  489.145, excluding the costs of training, operation, and

25  maintenance. The guaranteed energy performance savings

26  contractor shall provide for the replacement or the extension

27  of the useful life of the equipment during the term of the

28  contract.

29         (11)  For purposes of consolidated financing of

30  deferred payment commodity contracts under this section by a

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

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 1  be supported from available recurring funds appropriated to

 2  the agency in an appropriation category, other than the

 3  expense appropriation category as defined in chapter 216, that

 4  the Chief Financial Officer has determined is appropriate or

 5  that the Legislature has designated for payment of the

 6  obligation incurred under this section.

 7         Section 23.  Section 489.145, Florida Statutes, is

 8  amended to read:

 9         489.145  Guaranteed energy performance savings

10  contracting.--

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

12  "Guaranteed Energy Performance Savings Contracting Act."

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

14  investment in energy conservation measures in agency

15  facilities can reduce the amount of energy consumed and

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

17  this state to encourage agencies to invest in energy

18  conservation measures that reduce energy consumption, produce

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

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

21  when economically feasible, build or renovate existing agency

22  facilities in such a manner as to minimize energy consumption

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

24  state to encourage agencies to reinvest any energy savings

25  resulting from energy conservation measures in additional

26  energy conservation efforts.

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

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

29  political subdivision.

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

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

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

 2  facility, which reduces energy or energy-related operating

 3  costs and includes, but is not limited to:

 4         1.  Insulation of the facility structure and systems

 5  within the facility.

 6         2.  Storm windows and doors, caulking or

 7  weatherstripping, multiglazed windows and doors,

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

 9  and door systems, additional glazing, reductions in glass

10  area, and other window and door system modifications that

11  reduce energy consumption.

12         3.  Automatic energy control systems.

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

14  modifications or replacements.

15         5.  Replacement or modifications of lighting fixtures

16  to increase the energy efficiency of the lighting system,

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

18  local building code.

19         6.  Energy recovery systems.

20         7.  Cogeneration systems that produce steam or forms of

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

22  within a facility or complex of facilities.

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

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

25  or significantly reduce Btu consumed.

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

27  or wind systems.

28         10.  Devices that reduce water consumption or sewer

29  charges.

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

31  storage.

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 1         12.  Generating technologies, such as microturbines.

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

 3  existing equipment.

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

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

 6  operation and maintenance created from the implementation of

 7  one or more energy conservation measures when compared with an

 8  established baseline for the previous cost of fuel, energy

 9  consumption, and stipulated operation and maintenance.

10         (d)  "Guaranteed energy performance savings contract"

11  means a contract for the evaluation, recommendation, and

12  implementation of energy conservation measures or

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

14  minimum, shall include:

15         1.  The design and installation of equipment to

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

17  operation and maintenance of such measures.

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

19  or exceed total annual contract payments made by the agency

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

21  used in this section, allowable cost-avoidance calculations

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

23  costs contained in a capital replacement plan less the current

24  undepreciated value of replaced equipment and the replacement

25  cost of the new equipment.

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

27  life of the contract.

28         (e)  "Guaranteed energy performance savings contractor"

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

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

31  

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 1  analysis, design, implementation, or installation of energy

 2  conservation measures through energy performance contracts.

 3         (4)  PROCEDURES.--

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

 5  performance savings contract with a guaranteed energy

 6  performance savings contractor to significantly reduce energy

 7  consumption or energy-related operating costs of an agency

 8  facility through one or more energy conservation measures.

 9         (b)  Before design and installation of energy

10  conservation measures, the agency must obtain from a

11  guaranteed energy performance savings contractor a report that

12  summarizes the costs associated with the energy conservation

13  measures or energy-related operational cost savings measures

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

15  savings. The agency and the guaranteed energy performance

16  savings contractor may enter into a separate agreement to pay

17  for costs associated with the preparation and delivery of the

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

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

20  savings being equal to or greater than the total projected

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

22  conservation measures.

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

24  performance savings contract with a guaranteed energy

25  performance savings contractor if the agency finds that the

26  amount the agency would spend on the energy conservation or

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

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

29  20 years from the date of installation, based on the life

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

31  recommendations in the report were followed and if the

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 1  qualified provider or providers give a written guarantee that

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

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

 4  must meet or exceed the estimated cost savings provided in

 5  program approval. Baseline adjustments used in calculations

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

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

 8         (d)  A guaranteed energy performance savings contractor

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

10  fewer than three firms are qualified to perform the required

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

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

13  s. 287.057 do not apply.

14         (e)  Before entering into a guaranteed energy

15  performance savings contract, an agency must provide published

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

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

18  and the contract's purpose.

19         (f)  A guaranteed energy performance savings contract

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

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

22  separate from the energy performance contract.  A separate

23  contract for third party financing pursuant to this paragraph

24  must include a provision that the third party financier must

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

26  privileges available to the guaranteed energy performance

27  savings contractor.

28         (g)  Financing for guaranteed energy performance

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

30  287.064.

31  

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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         (7)  FUNDING REPORT.--For purposes of consolidated

29  financing of deferred payment commodity contracts under this

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

31  contract must be supported from available recurring funds

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 1  appropriated to the agency in an appropriation category, as

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

 3  determined is appropriate or which the Legislature has

 4  designated for payment of the obligation incurred under this

 5  section.

 6  

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

 8  contract submitted under this section which does not meet the

 9  requirements of this section.

10         Section 24.  Section 366.93, Florida Statutes, is

11  amended to read:

12         366.93  Cost recovery for the siting, design,

13  licensing, and construction of nuclear and integrated

14  gasification combined cycle power plants.--

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

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

17  capital investments, including rate of return, any applicable

18  taxes, and all expenses, including operation and maintenance

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

20  design, construction, or operation of the nuclear or

21  integrated gasification combined cycle power plant.

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

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

24         (c)  "Integrated gasification combined cycle power

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

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

27  gasification technology.

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

29  electrical power plant as defined in s. 403.503(13) which s.

30  403.503(12) that uses nuclear materials for fuel.

31  

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

 2  plant or an integrated gasification combined cycle power

 3  plant.

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

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

 6  utility completes site clearing work. Preconstruction costs

 7  shall be afforded deferred accounting treatment and shall

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

 9  funds during construction (AFUDC) rate until recovered in

10  rates.

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

12  the commission shall establish, by rule, alternative cost

13  recovery mechanisms for the recovery of costs incurred in the

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

15  integrated gasification combined cycle power plant. Such

16  mechanisms shall be designed to promote utility investment in

17  nuclear or integrated gasification combined cycle power plants

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

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

20         (a)  Recovery through the capacity cost recovery clause

21  of any preconstruction costs.

22         (b)  Recovery through an incremental increase in the

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

24  costs on the utility's projected construction cost balance

25  associated with the nuclear or integrated gasification

26  combined cycle power plant. To encourage investment and

27  provide certainty, for nuclear or integrated gasification

28  combined cycle power plant need petitions submitted on or

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

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

31  law. For nuclear or integrated gasification combined cycle

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 1  power plants for which need petitions are submitted after

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

 3  presumed to be appropriate unless determined otherwise by the

 4  commission in the determination of need for the nuclear or

 5  integrated gasification combined cycle power plant.

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

 7  granted, a utility may petition the commission for cost

 8  recovery as permitted by this section and commission rules.

 9         (4)  When the nuclear or integrated gasification

10  combined cycle power plant is placed in commercial service,

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

12  by the projected annual revenue requirements of the nuclear or

13  integrated gasification combined cycle power plant based on

14  the jurisdictional annual revenue requirements of the plant

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

16  capital investments shall be calculated using the utility's

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

18  commercial inservice date of the nuclear or integrated

19  gasification combined cycle power plant. If any existing

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

21  nuclear or integrated gasification combined cycle power plant,

22  the commission shall allow for the recovery, through an

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

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

25         (5)  The utility shall report to the commission

26  annually the budgeted and actual costs as compared to the

27  estimated inservice cost of the nuclear or integrated

28  gasification combined cycle power plant provided by the

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

30  operation of the nuclear or integrated gasification combined

31  cycle power plant. The utility shall provide such information

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

 2  approving the determination of need for the nuclear or

 3  integrated gasification combined cycle power plant, with the

 4  understanding that some costs may be higher than estimated and

 5  other costs may be lower.

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

 7  is precluded from completing construction of the nuclear or

 8  integrated gasification combined cycle power plant, the

 9  utility shall be allowed to recover all prudent

10  preconstruction and construction costs incurred following the

11  commission's issuance of a final order granting a

12  determination of need for the nuclear or integrated

13  gasification combined cycle power plant. The utility shall

14  recover such costs through the capacity cost recovery clause

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

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

17  balance during the recovery period will accrue interest at the

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

19  commission's earnings surveillance reporting requirement for

20  the prior year.

21         Section 25.  Subsection (4) of section 403.519, Florida

22  Statutes, is amended to read:

23         403.519  Exclusive forum for determination of need.--

24         (4)  In making its determination on a proposed

25  electrical power plant using nuclear materials or synthesis

26  gas produced by integrated gasification combined cycle power

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

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

29  shall issue an order granting or denying the petition within

30  135 days after the date of the filing of the petition. The

31  commission shall be the sole forum for the determination of

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

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

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

 4  determination to either grant or deny the petition, the

 5  commission shall consider the need for electric system

 6  reliability and integrity, including fuel diversity, the need

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

 8  electricity at a reasonable cost.

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

10         1.  A description of the need for the generation

11  capacity.

12         2.  A description of how the proposed nuclear or

13  integrated gasification combined cycle power plant will

14  enhance the reliability of electric power production within

15  the state by improving the balance of power plant fuel

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

17  natural gas.

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

19  cost of the nuclear or integrated gasification combined cycle

20  power plant.

21         4.  The annualized base revenue requirement for the

22  first 12 months of operation of the nuclear or integrated

23  gasification combined cycle power plant.

24         5.  Information on whether there were any discussions

25  with any electric utilities regarding ownership of a portion

26  of the nuclear or integrated gasification combined cycle power

27  plant by such electric utilities.

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

29  take into account matters within its jurisdiction, which it

30  deems relevant, including whether the nuclear or integrated

31  gasification combined cycle power plant will:

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 1         1.  Provide needed base-load capacity.

 2         2.  Enhance the reliability of electric power

 3  production within the state by improving the balance of power

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

 5  oil and natural gas.

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

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

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

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

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

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

12  Administrative Code, shall be applicable to a nuclear or

13  integrated gasification combined cycle power plant sited under

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

15  applicant shall not otherwise be required to secure

16  competitive proposals for power supply prior to making

17  application under this act or receiving a determination of

18  need from the commission.

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

20  nuclear or integrated gasification combined cycle power plant

21  shall create a presumption of public need and necessity and

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

23  403.507(4)(a). An order entered pursuant to this section

24  constitutes final agency action. Any petition for

25  reconsideration of a final order on a petition for need

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

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

28  on reconsideration, shall be reviewable on appeal in the

29  Florida Supreme Court. Inasmuch as delay in the determination

30  of need will delay siting of a nuclear or integrated

31  gasification combined cycle power plant or diminish the

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 1  opportunity for savings to customers under the federal Energy

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

 3  and determine the action as expeditiously as practicable and

 4  give the action precedence over matters not accorded similar

 5  precedence by law.

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

 7  nuclear or integrated gasification combined cycle power plant

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

 9  incurred prior to commercial operation, including, but not

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

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

12  to challenge unless and only to the extent the commission

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

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

15  costs were imprudently incurred. Proceeding with the

16  construction of the nuclear or integrated gasification

17  combined cycle power plant following an order by the

18  commission approving the need for the nuclear or integrated

19  gasification combined cycle power plant under this act shall

20  not constitute or be evidence of imprudence. Imprudence shall

21  not include any cost increases due to events beyond the

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

23  associated with a nuclear or integrated gasification combined

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

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

26  prior to commercial operation shall be recovered pursuant to

27  chapter 366.

28         Section 26.  The Department of Community Affairs shall,

29  on or before September 1, 2007, review and if warranted under

30  part VI of chapter 533, Florida Statutes, establish, by rule,

31  new or updated energy-conservation standards to improve the

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 1  energy efficiency of the following products: residential pool

 2  pumps, pool heaters and spas, commercial and residential

 3  appliances, and electronic equipment. If the department

 4  determines that new or updated standards are not so warranted,

 5  it shall, on or before September 1, 2007, provide a written

 6  report to the Governor and Legislature describing in detail

 7  the reason for its determination and, separately for each

 8  product, the efficiency improvements considered for the

 9  product, the expected life of the product and each improvement

10  considered, how much less electricity would be used in this

11  state if the improvement were established as an energy

12  conservation standard, the cost-effectiveness of each

13  improvement considered, and the method used to determine cost

14  effectiveness.

15         Section 27.  Section 287.151, Florida Statutes, is

16  amended to read:

17         287.151  Limitation on classes of motor vehicles

18  procured.--

19         (1)  All motor vehicles purchased or leased by the

20  state with funds provided in the General Appropriations Act

21  shall be of the subcompact class except vehicles used for law

22  enforcement purposes by law enforcement officers of the state,

23  used as tow vehicles, routinely used to transport more than

24  three adults or bulk materials, or vehicles operated

25  frequently on unpaved roads. All vehicles purchased shall be

26  of the smallest class that can safely and adequately meet the

27  transportation requirements.

28         (2)  No funds in the General Appropriations Act shall

29  be used to purchase any vehicle at prices in excess of the

30  standard prices negotiated by the Department of Management

31  Services.

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

 2         (a)  "Hybrid vehicle" means a hybrid vehicle, as

 3  defined in s. 316.0741.

 4         (b)  "Flex-fuel vehicle" means a vehicle that:

 5         1.  Is designed to run on gasoline or a blend of up to

 6  85 percent ethanol (E85); and

 7         2.  Can be operated on a locally available supply of

 8  ethanol.

 9         (c)  "Biodiesel vehicle" means a diesel vehicle that

10  runs on mono-alkyl esters of long chain fatty acids derived

11  from vegetable oils or animal fats which conform to ASTM D6751

12  specifications for use in diesel engines. Biodiesel refers to

13  the pure fuel before blending with diesel fuel. Biodiesel

14  blends are denoted as "BXX" with "XX," representing the

15  percentage of biodiesel contained in the blend. For example,

16  B100 is pure biodiesel and B20 is a blend of 20-percent

17  biodiesel and 80-percent petroleum diesel.

18         (4)(a)  By July 1, 2008, at least 25 percent of all new

19  motor vehicles purchased in the prior 12 months by a state

20  agency, state university, or local government through any

21  state purchasing plan must be hybrid, flex-fuel, biodiesel, or

22  compressed natural gas vehicles if the type of vehicle being

23  purchased is available with such propulsion system and

24  otherwise meets the requirements for the vehicle's intended

25  use.

26         (b)  By July 1, 2009, at least 50 percent of all new

27  motor vehicles purchased in the prior 12 months by a state

28  agency, state university, or local government through any

29  state purchasing plan must be hybrid, flex-fuel, biodiesel, or

30  compressed natural gas vehicles if the type of vehicle being

31  purchased is available with such propulsion system and

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 1  otherwise meets the requirements for the vehicle's intended

 2  use.

 3         (c)  By July 1, 2010, at least 75 percent of all new

 4  motor vehicles purchased in the prior 12 months by a state

 5  agency, state university, or local government through any

 6  state purchasing plan must be hybrid, flex-fuel, biodiesel, or

 7  compressed natural gas vehicles if the type of vehicle being

 8  purchased is available with such propulsion system and

 9  otherwise meets the requirements for the vehicle's intended

10  use.

11         (d)  By July 1, 2011, at least 90 percent of all new

12  motor vehicles purchased in the prior 12 months by a state

13  agency, state university, or local government through any

14  state purchasing plan must be hybrid, flex-fuel, biodiesel, or

15  compressed natural gas vehicles if the type of vehicle being

16  purchased is available with such propulsion system and

17  otherwise meets the requirements for the vehicle's intended

18  use.

19         (e)  Any new motor vehicle purchased after July 1,

20  2011, by a state agency, state university, or local government

21  through any state purchasing plan must be a hybrid, flex-fuel,

22  biodiesel, or compressed natural gas vehicle if the type of

23  vehicle being purchased is available with such propulsion

24  system and otherwise meets the requirements for the vehicle's

25  intended use.

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

27  $500,000 is appropriated from the General Revenue Fund to the

28  Florida Alternative Energy Development Corporation Trust Fund

29  for the purpose of funding the activities of the Florida

30  Alternative Energy Development Corporation for the 2007-2008

31  fiscal year.

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

 2  $40 million is appropriated from the General Revenue Fund to

 3  the Florida Alternative Energy Trust Fund for purposes of

 4  funding the Alternative Energy Incentive Program.

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

 6  $15 million is appropriated from the General Revenue Fund to

 7  the Florida Alternative Energy Trust Fund for the purpose of

 8  funding the Renewable Energy Technologies Grants Program.

 9         Section 31.  For the 2007-2008 fiscal year, the sum of

10  $2.5 million is appropriated from the General Revenue Fund to

11  the Department of Environmental Protection for the purpose of

12  funding commercial and consumer solar incentives authorized in

13  s. 377.806, Florida Statutes.

14         Section 32.  For the 2007-2008 fiscal year, the sum of

15  $65,763 is appropriated from the General Revenue Fund to the

16  Department of Revenue for the purpose of administering the

17  energy-efficient products sales tax holiday.

18         Section 33.  Except as otherwise expressly provided in

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

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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

 3                                 

 4  The committee substitute:

 5  Revises the membership of the board of directors for the
    Florida Alternative Energy Development Corporation to include
 6  the Commissioner of Agriculture and the Chief Financial
    Officer.
 7  
    Amends the definition of "business project" for the purposes
 8  of the Alternative Energy Incentive Program.

 9  Deletes the repeal for the Florida Energy Commission.

10  Deletes the definition of net metering.

11  Revises the provisions relating to consolidated financing of
    deferred-payment purchases for energy-related or
12  conservation-related equipment.

13  Requires the Department of Community Affairs to establish new
    or updated energy conservation standards to improve the energy
14  efficiency of certain specified products.

15  Includes integrated gasification combined cycle (IGCC) power
    plants in the new provisions relating to nuclear plants and
16  the determination of need for a proposed plant, the exemption
    from the bid rule, and early cost recovery. These are the
17  provisions contained in SB 1202.

18  Provides a phase-in to require the purchase of hybrid,
    flex-fuel, biodiesel, or compressed natural gas vehicles
19  purchased or leased with funds provided in the appropriations
    act.
20  

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                                  85

CODING: Words stricken are deletions; words underlined are additions.