HB 1165

1
A bill to be entitled
2An act relating to renewable energy; providing legislative
3findings regarding the state's energy policy; creating the
4Task Force on Oil and Natural Gas Inventory; providing for
5membership of the task force; requiring appointments to be
6made by a certain date; providing for administrative
7support; providing for duties and responsibilities;
8requiring the task force to submit a report and
9recommendations to the Legislature by a certain date;
10amending s. 196.175, F.S.; revising provisions relating to
11the renewable energy source exemption; revising the date
12on which certain energy source devices are excluded from
13the exemption; amending s. 212.08, F.S.; revising the
14definition of "ethanol"; defining the term "renewable
15fuel"; providing a tax exemption for the sale or use of
16renewable fuel; providing that such exemption is limited
17to one purchase of an eligible item; amending s. 220.192,
18F.S.; defining the terms "corporation" and "renewable
19fuel"; revising the definition of "eligible costs" to
20include renewable fuels; providing for transfer of the
21renewable energy technologies investment tax credit;
22providing requirements for such transfer; requiring that
23the tax credit be passed through to certain taxpayers;
24authorizing the Department of Revenue to adopt rules
25regarding the transfer and pass through of such tax
26credit; amending s. 220.193, F.S.; defining the term
27"sale" or "sold"; providing that the use of the renewable
28energy production credit does not reduce the alternative
29minimum tax credit; repealing s. 52, chapter 2007-73, Laws
30of Florida, relating to restoring joint agency approval
31requirements for the Renewable Energy Technologies Grants
32Program; amending s. 377.806, F.S.; requiring an applicant
33to file a preapplication to receive a rebate under the
34solar photovoltaic system incentive; deleting a provision
35that requires Btu to be verified in determining the rebate
36amount; limiting rebates to one type of system per
37resident per fiscal year; requiring the Department of
38Environmental Protection to adopt rules regarding
39applications for rebate reservations and rebate payments;
40amending s. 570.957, F.S.; extending the expiration date
41for the Farm-to-Fuel Grants Program; providing an
42effective date.
43
44     WHEREAS, the Legislature finds it is in the public interest
45to keep Florida an attractive place to live, work, and do
46business as the state's economy continues to make the transition
47from a low-cost state to a high-cost state and the state's
48population continues to grow, and
49     WHEREAS, projections indicate that Florida will add 10
50million new residents by 2030 and the state's energy needs are
51expected to grow 30 percent by 2017 and 76 percent by 2030, and
52     WHEREAS, Florida must meet these needs and still provide
53affordable and reliable energy to consumers and businesses, and
54     WHEREAS, the Legislature finds that it is in the public
55interest to develop a comprehensive energy policy that balances
56environmentally responsible, affordable, and reliable energy for
57Floridians, and
58     WHEREAS, Florida must invest in research and development
59for alternative and renewable energy, promote conservation and
60efficiency, create clean energy jobs to support the growth of
61the alternative energy industry, promote incentive-based
62emission reductions programs, and keep all energy options
63available, and
64     WHEREAS, Florida should create an inventory of the oil and
65natural gas resources located off the coast, and
66     WHEREAS, the Legislature finds it is important to promote
67alternative and renewable energy technologies, including
68alternative fuels and technologies for electric power plants and
69motor vehicles and energy conservation, and
70     WHEREAS, Florida and the United States in general are
71overly dependent on foreign oil to meet the energy needs of
72buildings and motor vehicles, and
73     WHEREAS, alternative and renewable energy and energy
74conservation technologies have the potential to decrease oil
75dependency, minimize volatility of fuel cost, and improve
76environmental conditions, and
77     WHEREAS, in-state research, development, deployment, and
78use of these technologies can make the state a leader in new and
79innovative technologies and encourage investment and economic
80development, and
81     WHEREAS, the Legislature finds it is in the public interest
82to create 10,000 high-skill, high-wage clean technology jobs to
83support the growth of the alternative energy industry in Florida
84and help diversify the state's economy, and
85     WHEREAS, the Legislature finds it is in the public interest
86to invest in alternative and renewable energy technology
87research and development because our current technology is not
88advanced enough to provide electricity and automobile fuels at
89an affordable and reliable rate and meet greenhouse gas
90reduction goals, and
91     WHEREAS, the Legislature finds it is in the public interest
92to keep all energy and fuel options open for consideration in
93developing a comprehensive energy policy that balances
94affordable, reliable, and environmentally responsible energy for
95Florida, and
96     WHEREAS, it is important to know where the state's fuel
97resources are and to what extent the state has access to those
98resources, NOW, THEREFORE,
99
100Be It Enacted by the Legislature of the State of Florida:
101
102     Section 1.  Task Force on Oil and Natural Gas Inventory.--
103     (1)  There is created the Task Force on Oil and Natural Gas
104Inventory to study, examine, and report to the Legislature
105regarding the feasibility of oil and natural gas exploration in
106the coastal waters of the Gulf of Mexico within the jurisdiction
107of the state.
108     (2)  The task force shall be composed of:
109     (a)  Two members appointed by the Governor.
110     (b)  Two members appointed by the President of the Senate.
111     (c)  Two members appointed by the Speaker of the House of
112Representatives.
113     (d)  The Commissioner of Agriculture or a designee.
114     (e)  The Secretary of Environmental Protection or a
115designee.
116     (f)  The chair of the Florida Energy Commission or a
117designee.
118     (g)  The chair of the Governor's Action Team on Climate and
119Energy or a designee.
120     (h)  The chair of the Public Service Commission.
121     (3)  Appointments to the task force shall be made by August
1221, 2008. Members shall choose a chair and vice chair from the
123membership of the task force.
124     (4)  The Department of Environmental Protection's clerical
125and professional staff shall provide administrative support to
126the task force. The task force may request the clerical and
127professional staff of the standing committees of the Senate and
128the House of Representatives to provide such support, if the
129task force finds it appropriate.
130     (5)  In conducting the study, the task force shall consider
131comprehensive implications relating to energy, economic
132development, tourism, commercial and recreational fishing, the
133environment, agriculture, manufacturing, public safety, national
134security, employment, and the possible effects on state and
135local economies. In order to consider these comprehensive
136effects, the task force shall seek the expertise of interested
137and knowledgeable persons from public, private, and nonprofit
138organizations, including, but not limited to, the following
139state agencies:
140     (a)  The Department of Environmental Protection.
141     (b)  The Department of Health.
142     (c)  The Office of Tourism, Trade, and Economic
143Development.
144     (d)  The Department of Agriculture and Consumer Services.
145     (e)  The Fish and Wildlife Conservation Commission.
146     (f)  The Public Service Commission.
147     (6)  The task force shall submit its report and
148recommendations to the Legislature by January 8, 2009, on which
149date the task force is dissolved.
150     Section 2.  Section 196.175, Florida Statutes, is amended
151to read:
152     196.175  Renewable energy source exemption.--
153     (1)  Improved real property upon which a renewable energy
154source device is installed and operated shall be entitled to an
155exemption in the amount of not greater than the lesser of:
156     (a)  The assessed value of such real property less any
157other exemptions applicable under this chapter;
158     (b)  the original cost of the device, including the
159installation cost thereof, but excluding the cost of replacing
160previously existing property removed or improved in the course
161of such installation; or
162     (c)  Eight percent of the assessed value of such property
163immediately following installation.
164     (2)  The exempt amount authorized under subsection (1)
165shall apply in full if the device was installed and operative
166throughout the 12-month period preceding January 1 of the year
167of application for this exemption. If the device was operative
168for a portion of that period, the exempt amount authorized under
169this section shall be reduced proportionally.
170     (3)  It shall be the responsibility of the applicant for an
171exemption pursuant to this section to demonstrate affirmatively
172to the satisfaction of the property appraiser that he or she
173meets the requirements for exemption under this section and that
174the original cost pursuant to paragraph (1)(b) and the period
175for which the device was operative, as indicated on the
176exemption application, are correct.
177     (4)  No exemption authorized pursuant to this section shall
178be granted for a period of more than 10 years. No exemption
179shall be granted with respect to renewable energy source devices
180installed before July 1, 2008 January 1, 1980, or after December
18131, 1990.
182     Section 3.  Paragraph (ccc) of subsection (7) of section
183212.08, Florida Statutes, is amended to read:
184     212.08  Sales, rental, use, consumption, distribution, and
185storage tax; specified exemptions.--The sale at retail, the
186rental, the use, the consumption, the distribution, and the
187storage to be used or consumed in this state of the following
188are hereby specifically exempt from the tax imposed by this
189chapter.
190     (7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
191entity by this chapter do not inure to any transaction that is
192otherwise taxable under this chapter when payment is made by a
193representative or employee of the entity by any means,
194including, but not limited to, cash, check, or credit card, even
195when that representative or employee is subsequently reimbursed
196by the entity. In addition, exemptions provided to any entity by
197this subsection do not inure to any transaction that is
198otherwise taxable under this chapter unless the entity has
199obtained a sales tax exemption certificate from the department
200or the entity obtains or provides other documentation as
201required by the department. Eligible purchases or leases made
202with such a certificate must be in strict compliance with this
203subsection and departmental rules, and any person who makes an
204exempt purchase with a certificate that is not in strict
205compliance with this subsection and the rules is liable for and
206shall pay the tax. The department may adopt rules to administer
207this subsection.
208     (ccc)  Equipment, machinery, and other materials for
209renewable energy technologies.--
210     1.  As used in this paragraph, the term:
211     a.  "Biodiesel" means the mono-alkyl esters of long-chain
212fatty acids derived from plant or animal matter for use as a
213source of energy and meeting the specifications for biodiesel
214and biodiesel blends with petroleum products as adopted by the
215Department of Agriculture and Consumer Services. Biodiesel may
216refer to biodiesel blends designated BXX, where XX represents
217the volume percentage of biodiesel fuel in the blend.
218     b.  "Ethanol" means an nominally anhydrous denatured
219alcohol produced by the conversion of carbohydrates fermentation
220of plant sugars meeting the specifications for fuel ethanol and
221fuel ethanol blends with petroleum products as adopted by the
222Department of Agriculture and Consumer Services. Ethanol may
223refer to fuel ethanol blends designated EXX, where XX represents
224the volume percentage of fuel ethanol in the blend.
225     c.  "Hydrogen fuel cells" means equipment using hydrogen or
226a hydrogen-rich fuel in an electrochemical process to generate
227energy, electricity, or the transfer of heat.
228     d.  "Renewable fuel" means any motor vehicle fuel that is
229used to replace or reduce the quantity of fossil fuel present in
230a fuel mixture that is used to fuel a motor vehicle and is
231produced from grain; starch; oilseeds; vegetable, animal, or
232fish materials, including fats, greases, and oils; sugarcane;
233sugar beets; sugar components; tobacco; potatoes; other biomass;
234or natural gas produced from a biogas source, including a
235landfill, sewage waste treatment plant, feedlot, or other place
236where there is decaying organic material. This term includes
237cellulosic biomass ethanol, waste-derived ethanol, biodiesel
238(mono-alkyl ester), nonester renewable diesel, and blending
239components derived from renewable fuel.
240     2.  The sale or use of the following in the state is exempt
241from the tax imposed by this chapter:
242     a.  Hydrogen-powered vehicles, materials incorporated into
243hydrogen-powered vehicles, and hydrogen-fueling stations, up to
244a limit of $2 million in tax each state fiscal year for all
245taxpayers.
246     b.  Commercial stationary hydrogen fuel cells, up to a
247limit of $1 million in tax each state fiscal year for all
248taxpayers.
249     c.  Materials used in the distribution of biodiesel (B10-
250B100), renewable fuels, and ethanol (E10-E100), including
251fueling infrastructure, transportation, and storage, up to a
252limit of $1 million in tax each state fiscal year for all
253taxpayers. Gasoline fueling station pump retrofits for ethanol
254(E10-E100) distribution qualify for the exemption provided in
255this sub-subparagraph.
256     3.  The Department of Environmental Protection shall
257provide to the department a list of items eligible for the
258exemption provided in this paragraph.
259     4.a.  The exemption provided in this paragraph shall be
260available to a purchaser only through a refund of previously
261paid taxes. Only one purchase of an eligible item is subject to
262refund. A purchaser who has received a refund on an eligible
263item shall notify any subsequent purchaser of the item that such
264item is no longer eligible for a refund of paid taxes. The
265purchaser shall provide the notice to the subsequent purchaser
266on the sales invoice or other proof of purchase.
267     b.  To be eligible to receive the exemption provided in
268this paragraph, a purchaser shall file an application with the
269Department of Environmental Protection. The application shall be
270developed by the Department of Environmental Protection, in
271consultation with the department, and shall require:
272     (I)  The name and address of the person claiming the
273refund.
274     (II)  A specific description of the purchase for which a
275refund is sought, including, when applicable, a serial number or
276other permanent identification number.
277     (III)  The sales invoice or other proof of purchase showing
278the amount of sales tax paid, the date of purchase, and the name
279and address of the sales tax dealer from whom the property was
280purchased.
281     (IV)  A sworn statement that the information provided is
282accurate and that the requirements of this paragraph have been
283met.
284     c.  Within 30 days after receipt of an application, the
285Department of Environmental Protection shall review the
286application and shall notify the applicant of any deficiencies.
287Upon receipt of a completed application, the Department of
288Environmental Protection shall evaluate the application for
289exemption and issue a written certification that the applicant
290is eligible for a refund or issue a written denial of such
291certification within 60 days after receipt of the application.
292The Department of Environmental Protection shall provide the
293department with a copy of each certification issued upon
294approval of an application.
295     d.  Each certified applicant shall be responsible for
296forwarding a certified copy of the application and copies of all
297required documentation to the department within 6 months after
298certification by the Department of Environmental Protection.
299     e.  The provisions of s. 212.095 do not apply to any refund
300application made pursuant to this paragraph. A refund approved
301pursuant to this paragraph shall be made within 30 days after
302formal approval by the department.
303     f.  The department may adopt all rules pursuant to ss.
304120.536(1) and 120.54 to administer this paragraph, including
305rules establishing forms and procedures for claiming this
306exemption.
307     g.  The Department of Environmental Protection shall be
308responsible for ensuring that the total amounts of the
309exemptions authorized do not exceed the limits as specified in
310subparagraph 2.
311     5.  The Department of Environmental Protection shall
312determine and publish on a regular basis the amount of sales tax
313funds remaining in each fiscal year.
314     6.  This paragraph expires July 1, 2010.
315     Section 4.  Subsections (1), (6), and (7) of section
316220.192, Florida Statutes, are amended, present subsections (6)
317and (7) of that section are renumbered as subsections (7) and
318(8), respectively, and a new subsection (6) is added to that
319section, to read:
320     220.192  Renewable energy technologies investment tax
321credit.--
322     (1)  DEFINITIONS.--For purposes of this section, the term:
323     (a)  "Biodiesel" means biodiesel as defined in s.
324212.08(7)(ccc).
325     (b)  "Corporation" means a general partnership, limited
326partnership, limited liability company, unincorporated business,
327or other business entity in which a taxpayer owns an interest
328which is taxed as a partnership or is disregarded as a separate
329entity from the taxpayer for tax purposes.
330     (c)(b)  "Eligible costs" means:
331     1.  Seventy-five percent of all capital costs, operation
332and maintenance costs, and research and development costs
333incurred between July 1, 2006, and June 30, 2010, up to a limit
334of $3 million per state fiscal year for all taxpayers, in
335connection with an investment in hydrogen-powered vehicles and
336hydrogen vehicle fueling stations in the state, including, but
337not limited to, the costs of constructing, installing, and
338equipping such technologies in the state.
339     2.  Seventy-five percent of all capital costs, operation
340and maintenance costs, and research and development costs
341incurred between July 1, 2006, and June 30, 2010, up to a limit
342of $1.5 million per state fiscal year for all taxpayers, and
343limited to a maximum of $12,000 per fuel cell, in connection
344with an investment in commercial stationary hydrogen fuel cells
345in the state, including, but not limited to, the costs of
346constructing, installing, and equipping such technologies in the
347state.
348     3.  Seventy-five percent of all capital costs, operation
349and maintenance costs, and research and development costs
350incurred between July 1, 2006, and June 30, 2010, up to a limit
351of $6.5 million per state fiscal year for all taxpayers, in
352connection with an investment in the production, storage, and
353distribution of biodiesel (B10-B100), renewable fuels, and
354ethanol (E10-E100) in the state, including the costs of
355constructing, installing, and equipping such technologies in the
356state. Gasoline fueling station pump retrofits for ethanol (E10-
357E100) distribution qualify as an eligible cost under this
358subparagraph.
359     (d)(c)  "Ethanol" means ethanol as defined in s.
360212.08(7)(ccc).
361     (e)(d)  "Hydrogen fuel cell" means hydrogen fuel cell as
362defined in s. 212.08(7)(ccc).
363     (f)  "Renewable fuel" means renewable fuel as defined in s.
364212.08(7)(ccc).
365     (6)  TRANSFERABILITY OF CREDIT.--
366     (a)  Any corporation and any subsequent transferee who
367receives the tax credit may transfer such tax credit, in whole
368or in part, to any taxpayer by written agreement without
369transferring any ownership interest in the property generating
370the tax credit or any interest in the entity that owns the
371property. Transferees are entitled to apply the credit against
372the tax, which has the same effect as if the transferee had
373incurred the eligible costs.
374     (b)  To complete the transfer, the transferor shall send a
375written statement to the Department of Revenue as notice of the
376assignor's intent to transfer the tax credit to the assignee.
377The written statement must include the date the transfer is
378effective; the assignee's name, address, federal taxpayer
379identification number, and tax period; and the amount of tax
380credit to be transferred. The Department of Revenue shall issue,
381upon receipt of such statement, a certificate to the assignee
382reflecting the tax credit amounts transferred. The assignee
383shall attach a copy of the certificate to each tax return in
384which the tax credit is used.
385     (c)  If a tax credit is derived from an entity that is a
386corporation as defined in subsection (1) but is not transferred
387by such entity to a taxpayer pursuant to this subsection, the
388tax credit must be passed through to a taxpayer designated as a
389partner, member, or owner, respectively, in a manner agreed to
390by such person, regardless of whether any portion of the federal
391energy tax credit relating to eligible costs is allocated to
392such person.
393     (7)(6)  RULES.--The Department of Revenue shall have the
394authority to adopt rules relating to:
395     (a)  The forms required to claim a tax credit under this
396section, the requirements and basis for establishing an
397entitlement to a credit, and the examination and audit
398procedures required to administer this section.
399     (b)  The implementation and administration of a transfer of
400a tax credit, including the forms, reporting requirements, and
401the specific procedures, guidelines, and requirements necessary
402to transfer the tax credit.
403     (c)  The implementation and administration of a pass
404through of a tax credit to an owner, member, or partner,
405including the forms, reporting requirements, and the specific
406procedures, guidelines, and requirements necessary for the pass
407through of credit.
408     (8)(7)  PUBLICATION.--The Department of Environmental
409Protection shall determine and publish on a regular basis the
410amount of available tax credits remaining in each fiscal year.
411     Section 5.  Paragraph (f) is added to subsection (2) and
412paragraph (j) is added to subsection (3) of section 220.193,
413Florida Statutes, to read:
414     220.193  Florida renewable energy production credit.--
415     (2)  As used in this section, the term:
416     (f)  "Sale" or "sold" means the use of electricity by the
417producer of such electricity which decreases the amount of
418electricity that the producer would otherwise have to purchase.
419     (3)  An annual credit against the tax imposed by this
420section shall be allowed to a taxpayer, based on the taxpayer's
421production and sale of electricity from a new or expanded
422Florida renewable energy facility. For a new facility, the
423credit shall be based on the taxpayer's sale of the facility's
424entire electrical production. For an expanded facility, the
425credit shall be based on the increases in the facility's
426electrical production that are achieved after May 1, 2006.
427     (j)  A taxpayer's use of the credit granted pursuant to
428this section does not reduce the amount of any credit available
429to such taxpayer under s. 220.186.
430     Section 6.  Section 52 of chapter 2007-73, Laws of Florida,
431is repealed.
432     Section 7.  Paragraph (c) is added to subsection (2) of
433section 377.806, Florida Statutes, paragraph (b) of subsection
434(3) and subsection (7) of that section are amended, present
435subsections (6) and (7) of that section are renumbered as
436subsections (7) and (8), respectively, and a new subsection (6)
437is added to that section, to read:
438     377.806  Solar Energy System Incentives Program.--
439     (2)  SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.--
440     (c)  Application.--To be eligible to receive a rebate,
441applicants shall file a preapplication form with the department
442which demonstrates that the planned system will meet the
443applicable requirements of this section. The department shall
444review the preapplication to determine if it complies with the
445requirements of this section, notify the applicant within 30
446days after receipt of the preapplication that it has been
447received and meets such requirements, and reserve funding for
448the preapplication for up to 90 days after the date on which the
449notice is issued to the applicant. Within 90 days after the
450purchase of the solar photovoltaic system, the applicant shall
451submit a separate application for a rebate payment to the
452department.
453     (3)  SOLAR THERMAL SYSTEM INCENTIVE.--
454     (b)  Rebate amounts.--Authorized rebates for installation
455of solar thermal systems shall be as follows:
456     1.  Five hundred dollars for a residence.
457     2.  Fifteen dollars per 1,000 Btu up to a maximum of $5,000
458for a place of business, a publicly owned or operated facility,
459or a facility owned or operated by a private, not-for-profit
460organization, including condominiums or apartment buildings. Btu
461must be verified by approved metering equipment.
462     (6)  LIMITATION.--Rebates are limited to one type of system
463per resident per fiscal year.
464     (7)(6)  REBATE AVAILABILITY.--The department shall
465determine and publish on a regular basis the amount of rebate
466funds remaining in each fiscal year. The total dollar amount of
467all rebates issued by the department is subject to the total
468amount of appropriations in any fiscal year for this program. If
469funds are insufficient during the current fiscal year, any
470requests for rebates received during that fiscal year may be
471processed during the following fiscal year. Requests for rebates
472received in a fiscal year that are processed during the
473following fiscal year shall be given priority over requests for
474rebates received during the following fiscal year.
475     (8)(7)  RULES.--The department shall adopt rules pursuant
476to ss. 120.536(1) and 120.54 to develop applications for rebate
477reservations and rebate payments rebate applications and
478administer the issuance of rebates.
479     Section 8.  Subsection (3) of section 570.957, Florida
480Statutes, is amended to read:
481     570.957  Farm-to-Fuel Grants Program.--
482     (3)  This section expires July 1, 2009 2008.
483     Section 9.  This act shall take effect July 1, 2008.


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