1

A bill to be entitled

2

An act relating to renewable energy; providing legislative

3

findings regarding the state's energy policy; creating the

4

Task Force on Oil and Natural Gas Inventory; providing for

5

membership of the task force; requiring appointments to be

6

made by a certain date; providing for administrative

7

support; providing for duties and responsibilities;

8

requiring the task force to submit a report and

9

recommendations to the Legislature by a certain date;

10

amending s. 196.175, F.S.; revising provisions relating to

11

the renewable energy source exemption; revising the date

12

on which certain energy source devices are excluded from

13

the exemption; amending s. 212.08, F.S.; revising the

14

definition of "ethanol"; defining the term "renewable

15

fuel"; providing a tax exemption for the sale or use of

16

renewable fuel; providing that such exemption is limited

17

to one purchase of an eligible item; amending s. 220.192,

18

F.S.; defining the term "corporation"; revising the

19

definition of "eligible costs" to include renewable fuels;

20

providing for transfer of the renewable energy

21

technologies investment tax credit; providing requirements

22

for such transfer; requiring that the tax credit be passed

23

through to certain taxpayers; authorizing the Department

24

of Revenue to adopt rules regarding the transfer and pass

25

through of such tax credit; amending s. 220.193, F.S.;

26

defining the term "sale" or "sold"; providing that the use

27

of the renewable energy production credit does not reduce

28

the alternative minimum tax credit; repealing s. 52,

29

chapter 2007-73, Laws of Florida, relating to the

30

Renewable Energy Technologies Grants Program; amending s.

31

377.806, F.S.; requiring an applicant to file a

32

preapplication to receive a rebate under the solar

33

photovoltaic system incentive; deleting a provision that

34

requires Btu to be verified in determining the rebate

35

amount; limiting rebates to one type of system per

36

resident per fiscal year; requiring the Department of

37

Environmental Protection to adopt rules regarding

38

applications for rebate reservations and rebate payments;

39

amending s. 570.957, F.S.; extending the expiration date

40

for the Farm-to-Fuel Grant Program; providing an effective

41

date.

42

43

     WHEREAS, the Legislature finds it is in the public interest

44

to keep Florida an attractive place to live, work, and do

45

business as the state's economy continues to make the transition

46

from a low-cost state to a high-cost state and the state's

47

population continues to grow, and

48

     WHEREAS, projections indicate that Florida will add 10

49

million new residents by 2030 and the state's energy needs are

50

expected to grow 30 percent by 2017 and 76 percent by 2030, and

51

     WHEREAS, Florida must meet these needs and still provide

52

affordable and reliable energy to consumers and businesses, and

53

     WHEREAS, the Legislature finds that it is in the public

54

interest to develop a comprehensive energy policy that balances

55

environmentally responsible, affordable, and reliable energy for

56

Floridians, and

57

     WHEREAS, Florida must invest in research and development for

58

alternative and renewable energy, promote conservation and

59

efficiency, create clean energy jobs to support the growth of the

60

alternative energy industry, promote incentive-based emission

61

reductions programs, and keep all energy options available, and

62

     WHEREAS, Florida should create an inventory of the oil and

63

natural gas resources located off the coast, and

64

     WHEREAS, the Legislature finds it is important to promote

65

alternative and renewable energy technologies, including

66

alternative fuels and technologies for electric power plants and

67

motor vehicles and energy conservation, and

68

     WHEREAS, Florida and the United States in general are overly

69

dependent on foreign oil to meet the energy needs of buildings

70

and motor vehicles, and

71

     WHEREAS, alternative and renewable energy and energy

72

conservation technologies have the potential to decrease this

73

dependency, minimize volatility of fuel cost, and improve

74

environmental conditions, and

75

     WHEREAS, in-state research, development, deployment, and use

76

of these technologies can make the state a leader in new and

77

innovative technologies and encourage investment and economic

78

development, and

79

     WHEREAS, the Legislature finds it is in the public interest

80

to create 10,000 high-skill, high-wage clean technology jobs to

81

support the growth of the alternative energy industry in Florida

82

and help diversify the state's economy, and

83

     WHEREAS, the Legislature finds it is in the public interest

84

to invest in alternative and renewable energy technology research

85

and development because our current technology is not advanced

86

enough to provide electricity and automobile fuels at an

87

affordable and reliable rate and meet greenhouse gas reduction

88

goals, and

89

     WHEREAS, the Legislature finds it is in the public interest

90

to keep all energy and fuel options open for consideration in

91

developing a comprehensive energy policy that balances

92

affordable, reliable, and environmentally responsible energy for

93

Florida, and

94

     WHEREAS, it is important to know where the state's fuel

95

resources are and to what extent the state has access to those

96

resources, NOW, THEREFORE,

97

98

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

99

100

     Section 1. Task Force on Oil and Natural Gas Inventory.--

101

     (1) There is created the Task Force on Oil and Natural Gas

102

Inventory to study, examine, and report to the Legislature

103

regarding the feasibility of oil and natural gas exploration in

104

the coastal waters of the Gulf of Mexico within the jurisdiction

105

of the State of Florida.

106

     (2) The task force shall be composed of:

107

     (a) Two members appointed by the Governor;

108

     (b) Two members appointed by the President of the Senate;

109

     (c) Two members appointed by the Speaker of the House of

110

Representatives;

111

     (d) The Commissioner of Agriculture or a designee;

112

     (e) The Secretary of Environmental Protection or a

113

designee;

114

     (f) The chair of the Florida Energy Commission or a

115

designee;

116

     (g) The chair of the Governor's Action Team on Climate and

117

Energy or a designee; and

118

     (h) The chair of the Public Service Commission.

119

     (3) Appointments to the task force shall be made by August

120

1, 2008. Members shall choose a chair and vice chair from the

121

membership of the task force.

122

     (4) The Department of Environmental Protection's clerical

123

and professional staff shall provide administrative support to

124

the task force. The task force may request the clerical and

125

professional staff of the standing committees of the Senate and

126

the House of Representatives to provide such support, if the task

127

force finds it appropriate.

128

     (5) In conducting the study, the task force shall consider

129

comprehensive implications relating to energy, economic

130

development, tourism, commercial and recreational fishing, the

131

environment, agriculture, manufacturing, public safety, national

132

security, employment, and the possible effects on state and local

133

economies. In order to consider these comprehensive effects, the

134

task force shall seek the expertise of interested and

135

knowledgeable persons from public, private, and nonprofit

136

organizations, including, but not limited to, the following state

137

agencies:

138

     (a) The Department of Environmental Protection;

139

     (b) The Department of Health;

140

     (c) The Office of Tourism, Trade, and Economic Development;

141

     (d) The Department of Agriculture and Consumer Services;

142

     (e) The Fish and Wildlife Conservation Commission; and

143

     (f) The Public Service Commission.

144

     (6) The task force shall submit its report and

145

recommendations to the Legislature by January 8, 2009, on which

146

date the task force is dissolved.

147

     Section 2.  Section 196.175, Florida Statutes, is amended to

148

read:

149

     196.175  Renewable energy source exemption.--

150

     (1)  Improved real property upon which a renewable energy

151

source device is installed and operated shall be entitled to an

152

exemption in the amount of not greater than the lesser of:

153

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

154

exemptions applicable under this chapter;

155

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

156

installation cost thereof, but excluding the cost of replacing

157

previously existing property removed or improved in the course of

158

such installation; or

159

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

160

immediately following installation.

161

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

162

apply in full if the device was installed and operative

163

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

164

application for this exemption. If the device was operative for a

165

portion of that period, the exempt amount authorized under this

166

section shall be reduced proportionally.

167

     (3)  It shall be the responsibility of the applicant for an

168

exemption pursuant to this section to demonstrate affirmatively

169

to the satisfaction of the property appraiser that he or she

170

meets the requirements for exemption under this section and that

171

the original cost pursuant to paragraph (1)(b) and the period for

172

which the device was operative, as indicated on the exemption

173

application, are correct.

174

     (4)  No exemption authorized pursuant to this section shall

175

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

176

be granted with respect to renewable energy source devices

177

installed before July 1, 2008 January 1, 1980, or after December

178

31, 1990.

179

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

180

212.08, Florida Statutes, is amended to read:

181

     212.08  Sales, rental, use, consumption, distribution, and

182

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

183

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

184

storage to be used or consumed in this state of the following are

185

hereby specifically exempt from the tax imposed by this chapter.

186

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

187

entity by this chapter do not inure to any transaction that is

188

otherwise taxable under this chapter when payment is made by a

189

representative or employee of the entity by any means, including,

190

but not limited to, cash, check, or credit card, even when that

191

representative or employee is subsequently reimbursed by the

192

entity. In addition, exemptions provided to any entity by this

193

subsection do not inure to any transaction that is otherwise

194

taxable under this chapter unless the entity has obtained a sales

195

tax exemption certificate from the department or the entity

196

obtains or provides other documentation as required by the

197

department. Eligible purchases or leases made with such a

198

certificate must be in strict compliance with this subsection and

199

departmental rules, and any person who makes an exempt purchase

200

with a certificate that is not in strict compliance with this

201

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

202

department may adopt rules to administer this subsection.

203

     (ccc)  Equipment, machinery, and other materials for

204

renewable energy technologies.--

205

     1.  As used in this paragraph, the term:

206

     a.  "Biodiesel" means the mono-alkyl esters of long-chain

207

fatty acids derived from plant or animal matter for use as a

208

source of energy and meeting the specifications for biodiesel and

209

biodiesel blends with petroleum products as adopted by the

210

Department of Agriculture and Consumer Services. Biodiesel may

211

refer to biodiesel blends designated BXX, where XX represents the

212

volume percentage of biodiesel fuel in the blend.

213

     b. "Ethanol" means an nominally anhydrous denatured alcohol

214

produced by the conversion of carbohydrates fermentation of plant

215

sugars meeting the specifications for fuel ethanol and fuel

216

ethanol blends with petroleum products as adopted by the

217

Department of Agriculture and Consumer Services. Ethanol may

218

refer to fuel ethanol blends designated EXX, where XX represents

219

the volume percentage of fuel ethanol in the blend.

220

     c.  "Hydrogen fuel cells" means equipment using hydrogen or

221

a hydrogen-rich fuel in an electrochemical process to generate

222

energy, electricity, or the transfer of heat.

223

     d. "Renewable fuel" means any motor vehicle fuel that is

224

used to replace or reduce the quantity of fossil fuel present in

225

a fuel mixture that is used to fuel a motor vehicle and is

226

produced from any of the following: grain, starch, oilseeds,

227

vegetable, animal, or fish materials including fats, greases, and

228

oils, sugarcane, sugar beets, sugar components, tobacco,

229

potatoes, other biomass, or natural gas produced from a biogas

230

source, including a landfill, sewage waste treatment plant,

231

feedlot, or other place where there is decaying organic material.

232

This term includes cellulosic biomass ethanol, waste-derived

233

ethanol, biodiesel (mono-alkyl ester), non-ester renewable

234

diesel, and blending components derived from renewable fuel.

235

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

236

from the tax imposed by this chapter:

237

     a.  Hydrogen-powered vehicles, materials incorporated into

238

hydrogen-powered vehicles, and hydrogen-fueling stations, up to a

239

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

240

taxpayers.

241

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

242

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

243

     c.  Materials used in the distribution of biodiesel (B10-

244

B100), renewable fuels, and ethanol (E10-E100), including fueling

245

infrastructure, transportation, and storage, up to a limit of $1

246

million in tax each state fiscal year for all taxpayers. Gasoline

247

fueling station pump retrofits for ethanol (E10-E100)

248

distribution qualify for the exemption provided in this sub-

249

subparagraph.

250

     3.  The Department of Environmental Protection shall provide

251

to the department a list of items eligible for the exemption

252

provided in this paragraph.

253

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

254

available to a purchaser only through a refund of previously paid

255

taxes. Only one purchase of an eligible item is subject to

256

refund. A purchaser who has received a refund on an eligible item

257

shall notify any subsequent purchaser of the item that such item

258

is no longer eligible for a refund of paid taxes. The purchaser

259

shall provide the notice to the subsequent purchaser on the sales

260

invoice or other proof of purchase.

261

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

262

paragraph, a purchaser shall file an application with the

263

Department of Environmental Protection. The application shall be

264

developed by the Department of Environmental Protection, in

265

consultation with the department, and shall require:

266

     (I)  The name and address of the person claiming the refund.

267

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

268

refund is sought, including, when applicable, a serial number or

269

other permanent identification number.

270

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

271

the amount of sales tax paid, the date of purchase, and the name

272

and address of the sales tax dealer from whom the property was

273

purchased.

274

     (IV)  A sworn statement that the information provided is

275

accurate and that the requirements of this paragraph have been

276

met.

277

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

278

Department of Environmental Protection shall review the

279

application and shall notify the applicant of any deficiencies.

280

Upon receipt of a completed application, the Department of

281

Environmental Protection shall evaluate the application for

282

exemption and issue a written certification that the applicant is

283

eligible for a refund or issue a written denial of such

284

certification within 60 days after receipt of the application.

285

The Department of Environmental Protection shall provide the

286

department with a copy of each certification issued upon approval

287

of an application.

288

     d.  Each certified applicant shall be responsible for

289

forwarding a certified copy of the application and copies of all

290

required documentation to the department within 6 months after

291

certification by the Department of Environmental Protection.

292

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

293

application made pursuant to this paragraph. A refund approved

294

pursuant to this paragraph shall be made within 30 days after

295

formal approval by the department.

296

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

297

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

298

rules establishing forms and procedures for claiming this

299

exemption.

300

     g.  The Department of Environmental Protection shall be

301

responsible for ensuring that the total amounts of the exemptions

302

authorized do not exceed the limits as specified in subparagraph

303

2.

304

     5.  The Department of Environmental Protection shall

305

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

306

funds remaining in each fiscal year.

307

     6.  This paragraph expires July 1, 2010.

308

     Section 4.  Subsections (1), (6), and (7) of section

309

220.192, Florida Statutes, are amended, present subsections (6)

310

and (7) of that section are redesignated as subsections (7) and

311

(8), respectively, and a new subsection (6) is added to that

312

section, to read:

313

     220.192  Renewable energy technologies investment tax

314

credit.--

315

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

316

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

317

212.08(7)(ccc).

318

     (b) "Corporation" means a general partnership, limited

319

partnership, limited liability company, unincorporated business,

320

or other business entity in which a taxpayer owns an interest

321

which is taxed as a partnership or is disregarded as a separate

322

entity from the taxpayer for tax purposes.

323

     (c)(b) "Eligible costs" means:

324

     1.  Seventy-five percent of all capital costs, operation and

325

maintenance costs, and research and development costs incurred

326

between July 1, 2006, and June 30, 2010, up to a limit of $3

327

million per state fiscal year for all taxpayers, in connection

328

with an investment in hydrogen-powered vehicles and hydrogen

329

vehicle fueling stations in the state, including, but not limited

330

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

331

technologies in the state.

332

     2.  Seventy-five percent of all capital costs, operation and

333

maintenance costs, and research and development costs incurred

334

between July 1, 2006, and June 30, 2010, up to a limit of $1.5

335

million per state fiscal year for all taxpayers, and limited to a

336

maximum of $12,000 per fuel cell, in connection with an

337

investment in commercial stationary hydrogen fuel cells in the

338

state, including, but not limited to, the costs of constructing,

339

installing, and equipping such technologies in the state.

340

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

341

maintenance costs, and research and development costs incurred

342

between July 1, 2006, and June 30, 2010, up to a limit of $6.5

343

million per state fiscal year for all taxpayers, in connection

344

with an investment in the production, storage, and distribution

345

of biodiesel (B10-B100), renewable fuels, and ethanol (E10-E100)

346

in the state, including the costs of constructing, installing,

347

and equipping such technologies in the state. Gasoline fueling

348

station pump retrofits for ethanol (E10-E100) distribution

349

qualify as an eligible cost under this subparagraph.

350

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

351

212.08(7)(ccc).

352

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

353

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

354

     (f) "Renewable fuel" means renewable fuel as defined in s.

355

212.08(7)(ccc).

356

     (6) TRANSFERABILITY OF CREDIT.--

357

     (a) Any corporation and any subsequent transferee who

358

receives the tax credit may transfer such tax credit, in whole or

359

in part, to any taxpayer by written agreement without

360

transferring any ownership interest in the property generating

361

the tax credit or any interest in the entity that owns the

362

property. Transferees are entitled to apply the credit against

363

the tax, which has the same effect as if the transferee had

364

incurred the eligible costs.

365

     (b) To complete the transfer, the transferor shall send a

366

written statement to the Department of Revenue as notice of the

367

assignor's intent to transfer the tax credit to the assignee. The

368

written statement must include the date the transfer is

369

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

370

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

371

credit to be transferred. The Department of Revenue shall issue,

372

upon receipt of such statement, a certificate to the assignee

373

reflecting the tax credit amounts transferred. The assignee shall

374

attach a copy of the certificate to each tax return in which the

375

tax credit is used.

376

     (c) If a tax credit is derived from an entity that is a

377

corporation as defined in subsection (1) but is not transferred

378

by such entity to a taxpayer pursuant to this subsection, the tax

379

credit must be passed through to a taxpayer designated as a

380

partner, member, or owner, respectively, in a manner agreed to by

381

such person, regardless of whether any portion of the federal

382

energy tax credit relating to eligible costs is allocated to such

383

person.

384

     (7)(6) RULES.--The Department of Revenue shall have the

385

authority to adopt rules relating to:

386

     (a) The forms required to claim a tax credit under this

387

section, the requirements and basis for establishing an

388

entitlement to a credit, and the examination and audit procedures

389

required to administer this section.

390

     (b) The implementation and administration of a transfer of

391

a tax credit, including the forms, reporting requirements, and

392

the specific procedures, guidelines, and requirements necessary

393

to transfer the tax credit.

394

     (c) The implementation and administration of a pass through

395

of a tax credit to an owner, member, or partner, including the

396

forms, reporting requirements, and the specific procedures,

397

guidelines, and requirements necessary for the pass through of

398

credit.

399

     (8)(7) PUBLICATION.--The Department of Environmental

400

Protection shall determine and publish on a regular basis the

401

amount of available tax credits remaining in each fiscal year.

402

     Section 5.  Paragraph (f) is added to subsection (2) and

403

paragraph (j) is added to subsection (3) of section 220.193,

404

Florida Statutes, to read:

405

     220.193  Florida renewable energy production credit.--

406

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

407

     (f) "Sale" or "sold" means the use of electricity by the

408

producer of such electricity which decreases the amount of

409

electricity that the producer would otherwise have to purchase.

410

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

411

section shall be allowed to a taxpayer, based on the taxpayer's

412

production and sale of electricity from a new or expanded Florida

413

renewable energy facility. For a new facility, the credit shall

414

be based on the taxpayer's sale of the facility's entire

415

electrical production. For an expanded facility, the credit shall

416

be based on the increases in the facility's electrical production

417

that are achieved after May 1, 2006.

418

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

419

section does not reduce the amount of any credit available to

420

such taxpayer under s. 220.186.

421

     Section 6. Section 52 of chapter 2007-73, Laws of Florida,

422

is repealed.

423

     Section 7.  Paragraph (c) is added to subsection (2) of

424

section 377.806, Florida Statutes, paragraph (b) of subsection

425

(3) and subsection (7) of that section are amended, present

426

subsections (6) and (7) of that section are redesignated as

427

subsections (7) and (8), respectively, and a new subsection (6)

428

is added to that section, to read:

429

     377.806  Solar Energy System Incentives Program.--

430

     (2)  SOLAR PHOTOVOLTAIC SYSTEM INCENTIVE.--

431

     (c) Application.--To be eligible to receive a rebate,

432

applicants shall file a preapplication form with the department

433

which demonstrates that the planned system will meet the

434

applicable requirements of this section. The department shall

435

review the preapplication to determine if it complies with the

436

requirements of this section, notify the applicant within 30 days

437

after receipt of the preapplication that it has been received and

438

meets such requirements, and reserve funding for the

439

preapplication for up to 90 days after the date on which the

440

notice is issued to the applicant. Within 90 days after the

441

purchase of the solar photovoltaic system, the applicant shall

442

submit a separate application for a rebate payment to the

443

department.

444

     (3)  SOLAR THERMAL SYSTEM INCENTIVE.--

445

     (b)  Rebate amounts.--Authorized rebates for installation of

446

solar thermal systems shall be as follows:

447

     1.  Five hundred dollars for a residence.

448

     2.  Fifteen dollars per 1,000 Btu up to a maximum of $5,000

449

for a place of business, a publicly owned or operated facility,

450

or a facility owned or operated by a private, not-for-profit

451

organization, including condominiums or apartment buildings. Btu

452

must be verified by approved metering equipment.

453

     (6) LIMITATION.--Rebates are limited to one type of system

454

per resident per fiscal year.

455

     (7)(6) REBATE AVAILABILITY.--The department shall determine

456

and publish on a regular basis the amount of rebate funds

457

remaining in each fiscal year. The total dollar amount of all

458

rebates issued by the department is subject to the total amount

459

of appropriations in any fiscal year for this program. If funds

460

are insufficient during the current fiscal year, any requests for

461

rebates received during that fiscal year may be processed during

462

the following fiscal year. Requests for rebates received in a

463

fiscal year that are processed during the following fiscal year

464

shall be given priority over requests for rebates received during

465

the following fiscal year.

466

     (8)(7) RULES.--The department shall adopt rules pursuant to

467

ss. 120.536(1) and 120.54 to develop applications for rebate

468

reservations and rebate payments rebate applications and

469

administer the issuance of rebates.

470

     Section 8.  Subsection (3) of section 570.957, Florida

471

Statutes, is amended to read:

472

     570.957  Farm-to-Fuel Grants Program.--

473

     (3) This section expires July 1, 2009 2008.

474

     Section 9.  This act shall take effect July 1, 2008.