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A bill to be entitled

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An act relating to the production of energy from biomass;

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creating s. 570.956, F.S.; establishing the Farm-to-Fuel

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Grants Program within the Department of Agriculture and

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Consumer Services; providing definitions; specifying the

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types of bioenergy projects to be funded by the program;

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providing eligibility requirements for sponsoring

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projects; authorizing the department to adopt rules;

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providing criteria for grant award consideration;

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requiring the department to consult with the Department of

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Environmental Protection, the Office of Tourism, Trade,

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and Economic Development, and certain experts when

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evaluating applications; creating s. 570.958, F.S.;

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establishing the Biofuel Retail Sales Incentive Program;

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establishing goals for replacing petroleum consumption;

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providing definitions; providing incentive payments to

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qualified retail dealers for increases in the amount of

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biofuels offered for sale; providing requirements and

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procedures therefor; authorizing rulemaking by the

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Department of Agriculture and Consumer Services; creating

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

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Production Incentive Program; providing definitions;

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providing incentive payments to producers of certain

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biofuels; providing requirements and procedures therefor;

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authorizing the Department of Agriculture and Consumer

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Services to adopt rules; providing an effective date.  

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

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     Section 1.  Section 570.956, Florida Statutes, is created to

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read:

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     570.956 Farm-to-Fuel Grants Program.--

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

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     (a) "Bioenergy" means energy produced from organic matter

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that is available on a renewable or recurring basis, including

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crops and trees, agricultural food and feed crop residues, wood

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and wood wastes and residues, aquatic plants, grasses, animal

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wastes and residues, and other organic waste materials.

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

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Consumer Services.

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

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

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service company, or any other public or private entity.

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

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the department to provide matching grants for bioenergy projects.

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Such grants may be made for research, demonstration, or

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commercialization projects relating to the production of

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bioenergy or feedstocks used in bioenergy production.

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     (a) Matching grants for bioenergy demonstration,

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commercialization, research, and development projects may be made

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to any of the following:

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     1. Municipalities and county governments.

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     2. Established for-profit companies licensed to do business

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in the state.

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     3. Universities and colleges in the state.

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     4. Utilities located and operating within the state.

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     5. Not-for-profit organizations.

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     6. Other qualified persons, as determined by the Department

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of Agriculture and Consumer Services.

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     (b) The department may adopt rules to provide for

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allocation of grant funds by project type, application

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requirements, ranking of applications, and awarding of grants

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under this program.

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     (c) Factors for consideration in awarding grants may

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

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     1. The project produces bioenergy from Florida-grown crops

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or biomass.

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     2. The project demonstrates efficient use of energy and

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material resources.

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     3. Matching funds and in-kind contributions from an

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applicant are available.

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     4. The project has a reasonable assurance of enhancing the

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value of agricultural products or will expand agribusiness in the

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state.

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     5. Preliminary market and feasibility research has been

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conducted by the applicant or others and shows there is a

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reasonable assurance of a potential market.

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     6. The project stimulates in-state capital investment and

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economic development in metropolitan and rural areas, including

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the creation of jobs and the future development of a commercial

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market for bioenergy.

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     7. The project incorporates an innovative new technology or

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an innovative application of an existing technology.

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     (d) In evaluating and awarding grants under this section,

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the department shall consult with and solicit input from the

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Department of Environmental Protection.

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     (e) In determining the technical feasibility of grant

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applications, the department shall coordinate and actively

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consult with persons having expertise in renewable energy

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technologies.

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     (f) In determining the economic feasibility of bioenergy

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grant applications, the department shall consult with the Office

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of Tourism, Trade, and Economic Development.

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     Section 2.  Section 570.958, Florida Statutes, is created to

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read:

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     570.958 Biofuel Retail Sales Incentive Program.--

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

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sale of biofuels in this state and replace petroleum consumption

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in the state by the following percentages over the specified

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periods:

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     (a) Three percent from January 1, 2009, through December

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31, 2009.

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     (b) Five percent from January 1, 2010, through December 31,

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2010.

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     (c) Seven percent from January 1, 2011, through December

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31, 2011.

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     (d) Ten percent from January 1, 2012, through December 31,

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2012.

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

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

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

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source of energy and meeting the specifications for biodiesel and

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biodiesel blended with petroleum products adopted by the

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department.

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     (b) "Biofuel" means E85 fuel ethanol, E10 motor fuel,

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biodiesel, and diesel blended fuel.

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     (c) "Diesel blended fuel" means a fuel mixture containing

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10 percent or more biodiesel or renewable diesel fuel with the

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balance comprised of diesel fuel and meeting the specifications

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for diesel blends as adopted by the department.

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

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and formulated with a nominal percentage of 85 percent ethanol by

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volume and meeting the applicable fuel quality specifications as

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adopted by the department.

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     (e) "E10 motor fuel" means a motor fuel blend consisting of

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nominal percentages of 90 percent gasoline by volume and 10

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percent ethanol by volume and meeting the fuel quality

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specifications for gasoline as adopted by the department.

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

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alcohol produced by the conversion of carbohydrates and meeting

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the specifications for fuel ethanol as adopted by the department.

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

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used to measure and deliver motor fuel or diesel fuel on a retail

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basis.

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     (h) "Renewable diesel fuel" means a fuel that meets the

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registration requirements for fuels and fuel additives

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established by the Environmental Protection Agency in the Clean

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Air Act; is not a mono-alkyl ester; is intended for use in

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engines that are designed to run on conventional petroleum-

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derived diesel fuel; is derived from nonpetroleum renewable

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resources, including, but not limited to, vegetable oils, animal

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wastes, including fats and wastes materials from poultry and

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other animals, or municipal solid wastes, sludges, and oils

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derived from wastewater and the treatment of wastewater; and

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meets the specifications for diesel fuel as adopted by the

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department.

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     (i) "Retail dealer" means a person who is engaged in the

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business of selling fuel at retail at posted retail prices.

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     (j) "Retail motor fuel site" means a geographic location in

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this state where a retail dealer sells or offers for sale motor

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fuel, diesel fuel, or biofuel to the general public.

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

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who sells biofuel through fuel dispensers at retail motor fuel

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sites is entitled to an incentive payment of:

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     1. One cent for each gallon of E10 motor fuel sold through

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a fuel dispenser.

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     2. Five cents for each gallon of E85 fuel ethanol sold

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through a fuel dispenser.

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     3. One cent for each gallon of diesel blended fuel sold

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through a fuel dispenser.

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     4. Three cents for each gallon of biodiesel sold through a

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fuel dispenser.

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

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after January 1, 2009. Beginning in 2010, each applicant claiming

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an incentive under this section must first apply to the

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

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available incentive for the preceding calendar year. The

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department shall develop an application form. The application

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

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retail dealer certifying:

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     1. The name and principal address of the retail dealer.

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

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sites from which it sold biofuels during the preceding calendar

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year.

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     3. The total gallons of E10 ethanol sold through fuel

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dispensers.

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     4. The total gallons of E85 ethanol sold through fuel

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dispensers.

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     5. The total gallons of diesel blended fuel sold through

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fuel dispensers.

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     6. The total gallons of biodiesel sold through fuel

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dispensers.

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     7. Any other information the department considers is

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necessary to adequately ensure that the incentive allowed under

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this section is made only to qualified retail dealers in this

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state.

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     (c) The department shall determine the amount of the

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incentive allowed under this section.

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

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exceeds the amount appropriated, the department shall pay to each

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applicant a prorated amount based on the gallonage of biofuel

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sold and dispensed by each applicant which is eligible for the

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incentive under this section.

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

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

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prescribing forms, the documentation needed to substantiate a

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claim for the incentive, and the specific procedures and

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guidelines for claiming the incentive.

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     Section 3.  Section 570.959, Florida Statutes, is created to

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read:

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     570.959 Florida Biofuel Production Incentive Program.--

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     (1) The purpose of this section is to provide economic

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incentives that encourage the development and expansion of

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facilities that produce biofuels in this state from crops,

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agricultural waste and residues, and other biomass produced in

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this state.

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

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

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

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source of energy and meeting the specifications for biodiesel and

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biodiesel blended with petroleum products as adopted by the

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department.

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     (b) "Biofuel" means ethanol or biodiesel.

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

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denatured alcohol produced by the conversion of carbohydrates and

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meeting the specifications for fuel ethanol adopted by the

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department.

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     (d) "Florida biofuel production" means production of

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biofuel in this state from crops, agricultural waste and

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residues, and other biomass produced in this state.

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

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this section, a person engaged in Florida biofuel production must

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have registered and have met the requirements in chapter 206.

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

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to a producer based on Florida biofuel production as follows:

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

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unblended Florida biofuel produced, exclusive of denaturant,

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

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biofuel.

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

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January 1, 2009. Beginning in 2010, each producer claiming an

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incentive under this section must first apply to the department

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by February 1 of each year for an allocation of available

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incentives. The department shall develop an application form

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that, at a minimum, requires a sworn affidavit from each producer

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certifying the production that forms the basis of the application

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and certifying that all information in the application is true

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and correct.

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     (c) The department shall determine whether or not such

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production is eligible for the incentive under this section.

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

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exceeds the amount appropriated, the department shall pay to each

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applicant a prorated amount based on the percentage of biofuel

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produced that is eligible for the incentive under this section.

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

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

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prescribing forms, the documentation needed to substantiate a

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claim for the incentive, and the specific procedures and

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guidelines for claiming the incentive.

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     Section 4.  This act shall take effect July 1, 2008.