1

A bill to be entitled

2

An act relating to biomass energy production; amending s.

3

212.08, F.S.; revising the definition of "ethanol";

4

increasing the limit on the amount of taxes that are

5

exempt for the sale or use of materials used to distribute

6

biodiesel and ethanol; limiting the tax exemption to

7

certain end users; providing that such exemption is

8

limited to one purchase of an eligible item; amending s.

9

220.192, F.S.; providing for transfer of the renewable

10

energy technologies investment tax credit; providing

11

requirements for such transfer; requiring that the tax

12

credit be passed through to certain taxpayers; authorizing

13

the Department of Revenue to adopt rules regarding the

14

transfer and pass through of such tax credit; amending s.

15

220.193, F.S.; defining the term "sale" or "sold";

16

providing that the use of the renewable energy production

17

credit does not reduce the alternative minimum tax credit;

18

creating s. 570.956, F.S.; providing definitions;

19

continuing the Farm-to-Fuel Grants Program within the

20

Department of Agriculture and Consumer Services; providing

21

that matching grants be made available for certain

22

bioenergy projects; requiring the department to adopt

23

rules; providing certain factors for consideration in

24

awarding grants; requiring the department to consult with

25

certain agencies and persons; creating s. 570.958, F.S.;

26

creating the Biofuel Retail Sales Incentive Program;

27

providing a purpose; providing that the petroleum

28

consumption be reduced by certain percentages over a

29

specified period; providing definitions; providing an

30

incentive payment to certain retail dealers who sell

31

biofuel after a certain date; requiring the Department of

32

Agriculture and Consumer Services to develop an

33

application form to claim the incentive; requiring that

34

the application contain certain information; requiring the

35

department to determine the amount of the incentive;

36

requiring the department to prorate the amount of

37

incentives paid to an applicant under certain

38

circumstances; authorizing the department to adopt rules;

39

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

40

Production Incentive Program within the department;

41

providing a purpose; providing definitions; requiring

42

persons engaged in biofuel production to meet certain

43

requirements to receive an economic incentive; providing

44

the criteria for distributing the incentive, subject to

45

appropriation; requiring the department to prorate the

46

amount of incentives to an applicant under certain

47

circumstances; authorizing the department to adopt rules;

48

providing an effective date.

49

50

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

51

52

     Section 1.  Paragraph (ccc) of subsection (7) of section

53

212.08, Florida Statutes, is amended to read:

54

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

55

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

56

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

57

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

58

hereby specifically exempt from the tax imposed by this chapter.

59

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

60

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

61

otherwise taxable under this chapter when payment is made by a

62

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

63

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

64

representative or employee is subsequently reimbursed by the

65

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

66

subsection do not inure to any transaction that is otherwise

67

taxable under this chapter unless the entity has obtained a sales

68

tax exemption certificate from the department or the entity

69

obtains or provides other documentation as required by the

70

department. Eligible purchases or leases made with such a

71

certificate must be in strict compliance with this subsection and

72

departmental rules, and any person who makes an exempt purchase

73

with a certificate that is not in strict compliance with this

74

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

75

department may adopt rules to administer this subsection.

76

     (ccc)  Equipment, machinery, and other materials for

77

renewable energy technologies.--

78

     1.  As used in this paragraph, the term:

79

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

80

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

81

source of energy and meeting the specifications for biodiesel and

82

biodiesel blends with petroleum products as adopted by the

83

Department of Agriculture and Consumer Services. Biodiesel may

84

refer to biodiesel blends designated BXX, where XX represents the

85

volume percentage of biodiesel fuel in the blend.

86

     b. "Ethanol" means an nominally anhydrous denatured alcohol

87

produced by the conversion of carbohydrates fermentation of plant

88

sugars meeting the specifications for fuel ethanol and fuel

89

ethanol blends with petroleum products as adopted by the

90

Department of Agriculture and Consumer Services. Ethanol may

91

refer to fuel ethanol blends designated EXX, where XX represents

92

the volume percentage of fuel ethanol in the blend.

93

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

94

a hydrogen-rich fuel in an electrochemical process to generate

95

energy, electricity, or the transfer of heat.

96

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

97

from the tax imposed by this chapter:

98

     a.  Hydrogen-powered vehicles, materials incorporated into

99

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

100

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

101

taxpayers.

102

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

103

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

104

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

105

B100) and ethanol (E10-E100), including fueling infrastructure,

106

transportation, and storage, up to a limit of $2 million $1

107

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

108

fueling station pump retrofits for ethanol (E10-E100)

109

distribution qualify for the exemption provided in this sub-

110

subparagraph.

111

     3.  The Department of Environmental Protection shall provide

112

to the department a list of items eligible for the exemption

113

provided in this paragraph.

114

     4. The exemption provided in this paragraph is available

115

only to the end user of the equipment, machinery, and other

116

materials.

117

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

118

available to a purchaser only through a refund of previously paid

119

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

120

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

121

shall notify any subsequent purchaser of the item that such item

122

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

123

shall provide the notice to the subsequent purchaser on the sales

124

invoice or other proof of purchase.

125

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

126

paragraph, a purchaser shall file an application with the

127

Department of Environmental Protection. The application shall be

128

developed by the Department of Environmental Protection, in

129

consultation with the department, and shall require:

130

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

131

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

132

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

133

other permanent identification number.

134

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

135

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

136

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

137

purchased.

138

     (IV)  A sworn statement that the information provided is

139

accurate and that the requirements of this paragraph have been

140

met.

141

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

142

Department of Environmental Protection shall review the

143

application and shall notify the applicant of any deficiencies.

144

Upon receipt of a completed application, the Department of

145

Environmental Protection shall evaluate the application for

146

exemption and issue a written certification that the applicant is

147

eligible for a refund or issue a written denial of such

148

certification within 60 days after receipt of the application.

149

The Department of Environmental Protection shall provide the

150

department with a copy of each certification issued upon approval

151

of an application.

152

     d.  Each certified applicant shall be responsible for

153

forwarding a certified copy of the application and copies of all

154

required documentation to the department within 6 months after

155

certification by the Department of Environmental Protection.

156

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

157

application made pursuant to this paragraph. A refund approved

158

pursuant to this paragraph shall be made within 30 days after

159

formal approval by the department.

160

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

161

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

162

rules establishing forms and procedures for claiming this

163

exemption.

164

     g.  The Department of Environmental Protection shall be

165

responsible for ensuring that the total amounts of the exemptions

166

authorized do not exceed the limits as specified in subparagraph

167

2.

168

     6.5. The Department of Environmental Protection shall

169

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

170

funds remaining in each fiscal year.

171

     7.6. This paragraph expires July 1, 2010.

172

     Section 2.  Subsection (7) of section 220.192, Florida

173

Statutes, is amended, present subsections (6) and (7) of that

174

section are redesignated as subsections (7) and (8),

175

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

176

to read:

177

     220.192  Renewable energy technologies investment tax

178

credit.--

179

(6) TRANSFERABILITY OF CREDIT.--

180

(a) Any corporation and any subsequent transferee who

181

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

182

in part, to any taxpayer by written agreement without

183

transferring any ownership interest in the property generating

184

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

185

property. Transferees are entitled to apply the credit against

186

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

187

incurred the eligible costs.

188

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

189

written statement to the Department of Revenue as notice of the

190

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

191

written statement must include the date the transfer is

192

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

193

identification number and tax period; and the amount of tax

194

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

195

upon receipt of such statement, a certificate to the assignee

196

reflecting the tax credit amounts transferred. The assignee shall

197

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

198

tax credit is used.

199

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

200

treated as a corporation pursuant to this section but is not

201

transferred by such entity to a taxpayer pursuant to this

202

subsection, the tax credit must be passed through to a taxpayer

203

designated as a partner, member, or owner, respectively, in a

204

manner agreed to by such person, regardless of whether any

205

portion of the federal energy tax credit relating to eligible

206

costs is allocated to such person.

207

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

208

authority to adopt rules relating to:

209

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

210

section, the requirements and basis for establishing an

211

entitlement to a credit, and the examination and audit procedures

212

required to administer this section.

213

     (b) The implementation and administration of a transfer of

214

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

215

the specific procedures, guidelines, and requirements necessary

216

to transfer the tax credit.

217

     (c) The implementation and administration of a pass through

218

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

219

forms, reporting requirements, and the specific procedures,

220

guidelines, and requirements necessary for the pass through of

221

credit.

222

     Section 3.  Paragraph (f) is added to subsection (2) of

223

section 220.193, Florida Statutes, and paragraph (j) is added to

224

subsection (3) of that section, to read:

225

     220.193  Florida renewable energy production credit.--

226

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

227

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

228

producer of such electricity which decreases the amount of

229

electricity that the producer would otherwise have to purchase.

230

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

231

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

232

production and sale of electricity from a new or expanded Florida

233

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

234

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

235

electrical production. For an expanded facility, the credit shall

236

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

237

that are achieved after May 1, 2006.

238

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

239

section does not reduce the amount of any credit available to

240

such taxpayer under s. 220.186.

241

     Section 4.  Section 570.956, Florida Statutes, is created to

242

read:

243

     570.956 Farm-to-Fuel Grants Program.--

244

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

245

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

246

which is available on a renewable or recurring basis, including

247

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

248

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

249

wastes and residues, and other organic waste materials.

250

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

251

Consumer Services.

252

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

253

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

254

service company, or any other public or private entity.

255

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

256

the department to provide matching grants for bioenergy projects.

257

Such grants may be made for research, demonstration, or

258

commercialization projects relating to the production of

259

bioenergy or feedstocks used in bioenergy production.

260

     (a) Matching grants for bioenergy demonstration,

261

commercialization, research, and development projects may be made

262

to any of the following:

263

     1. Municipalities and county governments.

264

     2. Established for-profit companies licensed to do business

265

in the state.

266

     3. Universities and colleges in the state.

267

     4. Utilities located and operating within the state.

268

     5. Not-for-profit organizations.

269

     6. Other qualified persons, as determined by the

270

department.

271

     (b) The department may adopt rules to provide for

272

allocation of grant funds by project type, application

273

requirements, ranking of applications, and awarding of grants

274

under this program.

275

     (c) Factors for consideration in awarding grants may

276

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

277

     1. The project produces bioenergy from Florida-grown crops

278

or biomass.

279

     2. The project demonstrates efficient use of energy and

280

material resources.

281

     3. Matching funds and in-kind contributions from an

282

applicant are available.

283

     4. The project has a reasonable assurance of enhancing the

284

value of agricultural products or will expand agribusiness in the

285

state.

286

     5. Preliminary market and feasibility research has been

287

conducted by the applicant or others and shows there is a

288

reasonable assurance of a potential market.

289

     6. The project stimulates in-state capital investment and

290

economic development in metropolitan and rural areas, including

291

the creation of jobs and the future development of a commercial

292

market for bioenergy.

293

     7. The project incorporates an innovative new technology or

294

an innovative application of an existing technology.

295

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

296

the department shall consult with and solicit input from the

297

Department of Environmental Protection.

298

     (e) In determining the technical feasibility of grant

299

applications, the department shall coordinate and actively

300

consult with persons having expertise in renewable energy

301

technologies.

302

     (f) In determining the economic feasibility of bioenergy

303

grant applications, the department shall consult with the Office

304

of Tourism, Trade, and Economic Development.

305

     Section 5.  Section 570.958, Florida Statutes, is created to

306

read:

307

     570.958 Biofuel Retail Sales Incentive Program.--

308

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

309

sale of biofuels and replace petroleum consumption in the state

310

by the following percentages over the specified periods:

311

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

312

31, 2009.

313

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

314

2010.

315

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

316

31, 2011.

317

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

318

2012.

319

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

320

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

321

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

322

source of energy and meeting the specifications for biodiesel and

323

biodiesel blended with petroleum products adopted by the

324

department.

325

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

326

biodiesel, and diesel blended fuel.

327

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

328

10 percent or more biodiesel or renewable diesel fuel with the

329

balance comprised of diesel fuel and meeting the specifications

330

for diesel blends as adopted by the department.

331

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

332

and formulated with a nominal percentage of 85 percent ethanol by

333

volume and meeting the applicable fuel quality specifications as

334

adopted by the department.

335

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

336

nominal percentages of 90 percent gasoline by volume and 10

337

percent ethanol by volume and meeting the fuel quality

338

specifications for gasoline as adopted by the department.

339

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

340

alcohol produced by the conversion of carbohydrates and meeting

341

the specifications for fuel ethanol as adopted by the department.

342

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

343

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

344

basis.

345

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

346

registration requirements for fuels and fuel additives

347

established by the Environmental Protection Agency in the Clean

348

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

349

engines that are designed to run on conventional petroleum-

350

derived diesel fuel; is derived from nonpetroleum renewable

351

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

352

wastes, including fats and wastes materials from poultry and

353

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

354

derived from wastewater and the treatment of wastewater; and

355

meets the specifications for diesel fuel as adopted by the

356

department.

357

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

358

business of selling fuel at retail at posted retail prices.

359

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

360

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

361

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

362

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

363

who sells biofuel through fuel dispensers at retail motor fuel

364

sites is entitled to an incentive payment of:

365

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

366

a fuel dispenser.

367

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

368

through a fuel dispenser.

369

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

370

through a fuel dispenser.

371

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

372

fuel dispenser.

373

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

374

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

375

claims an incentive under this section must first apply to the

376

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

377

available incentive for the preceding calendar year. The

378

department shall develop an application form. The application

379

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

380

retail dealer certifying:

381

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

382

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

383

sites from which it sold biofuels during the preceding calendar

384

year.

385

     3. The total gallons of E10 ethanol sold through fuel

386

dispensers.

387

     4. The total gallons of E85 ethanol sold through fuel

388

dispensers.

389

     5. The total gallons of diesel blended fuel sold through

390

fuel dispensers.

391

     6. The total gallons of biodiesel sold through fuel

392

dispensers.

393

     7. Any other information the department considers is

394

necessary to adequately ensure that the incentive allowed under

395

this section is made only to qualified retail dealers in the

396

state.

397

     (c) The department shall determine the amount of the

398

incentive allowed under this section.

399

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

400

exceeds the amount appropriated, the department shall pay to each

401

applicant a prorated amount based on the gallonage of biofuel

402

sold and dispensed by each applicant who is eligible for the

403

incentive under this section.

404

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

405

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

406

prescribing forms, the documentation needed to substantiate a

407

claim for the incentive, and the specific procedures and

408

guidelines for claiming the incentive.

409

     Section 6.  Section 570.959, Florida Statutes, is created to

410

read:

411

     570.959 Florida Biofuel Production Incentive Program.--

412

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

413

incentives that encourage the development and expansion of

414

facilities that produce biofuels in this state from crops,

415

agricultural waste and residues, and other biomass produced in

416

this state.

417

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

418

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

419

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

420

source of energy and meeting the specifications for biodiesel and

421

biodiesel blended with petroleum products as adopted by the

422

department.

423

     (b) "Biofuel" means ethanol or biodiesel.

424

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

425

denatured alcohol produced by the conversion of carbohydrates and

426

meeting the specifications for fuel ethanol adopted by the

427

department.

428

     (d) "Florida biofuel production" means production of

429

biofuel in this state from crops, agricultural waste and

430

residues, and other biomass produced in this state.

431

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

432

this section, a person engaged in Florida biofuel production must

433

have registered and have met the requirements in chapter 206.

434

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

435

to a producer based on Florida biofuel production as follows:

436

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

437

unblended Florida biofuel produced, exclusive of denaturant,

438

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

439

biofuel.

440

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

441

January 1, 2009. Beginning in 2010, each producer who claims an

442

incentive under this section must first apply to the department

443

by February 1 of each year for an allocation of available

444

incentives. The department shall develop an application form

445

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

446

certifying the production that forms the basis of the application

447

and certifying that all information in the application is true

448

and correct.

449

     (c) The department shall determine whether or not such

450

production is eligible for the incentive under this section.

451

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

452

exceeds the amount appropriated, the department shall pay to each

453

applicant a prorated amount based on the percentage of biofuel

454

produced that is eligible for the incentive under this section.

455

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

456

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

457

prescribing forms, the documentation needed to substantiate a

458

claim for the incentive, and the specific procedures and

459

guidelines for claiming the incentive.

460

     Section 7.  This act shall take effect July 1, 2008.