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A bill to be entitled

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An act relating to energy; creating s. 288.10894, F.S.;

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creating the Florida Alternative Energy Center; providing

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legislative findings; providing definitions; requiring

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that the center comply with public-meetings and public-

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records laws; providing for the organization, purpose, and

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duties of the center; providing for the membership of the

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board of directors of the center; requiring the disclosure

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of financial interests by board members; requiring an

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annual report; creating s. 288.10895, F.S.; creating the

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Alternative Energy Incentive Program for the purpose of

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encouraging economic development and research; providing

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definitions; providing for the program to be operated by

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the Florida Alternative Energy Center; providing the

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qualification criteria for a business to receive an award

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under the program; providing a grant-application process

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and requirements for such application; providing for an

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evaluation and award process; requiring that the center

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validate the performance of projects funded under the

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program; 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 288.10894, Florida Statutes, is created

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to read:

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     288.10894 Florida Alternative Energy Center; findings;

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creation; membership; organization; purpose; duties; powers.--

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

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to promote alternative energy technologies in this state,

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including alternative fuels and technologies for electrical power

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plants, electric motor vehicles, energy conservation, distributed

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generation, advanced transmission methods, and the control of

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pollution and greenhouse gases. Both Florida and the United

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States are overly dependent on foreign oil for meeting the energy

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needs of buildings and motor vehicles. Alternative energy and

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energy-conservation technologies have the potential to decrease

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this dependency, minimize the volatility of fuel costs, and

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improve environmental conditions. In-state research, development,

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deployment, and use of these technologies can make the state a

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leader in new and innovative technologies and encourage

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investment and economic development in this state.

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

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     (a) "Center" means the Florida Alternative Energy Center.

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     (b) "Alternative energy" means energy technologies that are

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undeveloped or less than established in current markets. The term

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includes, but is not limited to: biomass; agricultural products

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and byproducts; municipal solid waste, including landfill

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injection, landfill mining, and landfill gas; solar thermal and

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solar photovoltaic energy; geothermal; ocean energy, including

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wave or thermal; hydrogen fuel; fuel cells; energy conservation,

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including building, equipment, and appliance efficiency

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technologies; enhancements to the transmission of electricity,

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including advanced transmission lines; distributed generation;

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ethanol, biodiesel, and similar synthetic fuels; and technologies

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relating to limiting pollutants and greenhouse gases.

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

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

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Alternative Energy Center." It is the intent of the Legislature

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that the Florida Alternative Energy Center constitutes an

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entrepreneurial public corporation organized to provide and

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promote the public welfare by administering the governmental

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function of promoting the development of alternative energy in

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this state and that the corporation is not a department of the

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executive branch of state government within the scope and meaning

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of s. 6, Art. IV of the State Constitution, and is not

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functionally located within any state agency or department.

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     (b) The corporation is constituted as a public

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instrumentality, and the exercise by the corporation of the power

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conferred by this section is deemed to be the performance of an

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essential public function. The corporation constitutes an agency

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for the purposes of s. 120.52. The corporation is subject to

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chapter 119, subject to exceptions applicable to the corporation,

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and to the provisions of chapter 286; however, the corporation

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may provide notice of internal review committee meetings for

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competitive proposals or procurement to applicants by mail or

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facsimile rather than by means of publication. The corporation is

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

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section. If for any reason the establishment of the corporation

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is deemed in violation of law, such provision is severable and

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the remainder of this act remains in full force and effect.

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     (c) The corporation is a corporation primarily acting as an

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instrumentality of the state, within the meaning of s. 768.28.

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     (4) The center is the principal organization in the state

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for the promotion of alternative energy technology. Its goals are

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to minimize dependence on foreign oil, with the maximum overall

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benefit to the state, and, where possible, to minimize the

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effects of greenhouse gases. The center shall accomplish these

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goals by consolidating in-state resources and activities into a

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unified forum to better coordinate, facilitate, and fund

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research, development, deployment, and use of alternative energy

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technologies. In order to make better use of limited resources,

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the center shall focus on projects having near-term, in-state

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benefits. Additionally, in making decisions concerning research,

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development, or deployment projects, and in awarding grants and

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other outlays, the center shall determine which of the following

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elements of product and market development to focus upon in order

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to achieve the greatest benefit with respect to research and

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manufacturing, in the wholesale and retail markets, and for

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consumers. More specifically, the center shall:

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     (a) Bring together existing resources by:

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     1. Assisting in the integration of state-government energy

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programs.

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     2. Developing an information exchange system, including:

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     a. Creating a computer database, accessible by any

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interested person, by gathering and indexing all information

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concerning activities in this state related to programs of

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alternative energy technology research, development, and

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deployment in universities, at all levels of government agencies,

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and in private industry. The database must include a current

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index and profile of all research activities, identified by

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alternative energy technology area, including a summary of the

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project, the amount and sources of funding, and anticipated

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completion dates or, in case of completed research, the

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conclusions, recommendations, and applicability of research to

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state government and private-sector functions.

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     b. Developing an interactive electronic information point

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where interested persons can find information and connect with

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other interested persons.

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     c. Holding conferences for the purpose of providing

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additional information exchange and educating the public.

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     (b) Administer state-funded grants and capital outlay

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programs, including developing an application program to

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determine awards of those grants and outlays, and assist

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interested persons in obtaining additional funding for

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alternative energy technology projects.

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     (c) Explore the problems faced by persons developing

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technology in this state and determine the problems, such as

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problems in research, development, obtaining start-up capital and

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financing, or finding buyers for the technology, and assist in

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resolving these problems.

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

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the state as a location for businesses having operations related

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to alternative energy technologies.

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     (e) Develop recommendations for legislation to establish a

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state energy policy. The center shall continually review the

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state energy policy and recommend to the Legislature any

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additional necessary changes or improvements. The recommendations

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of the center shall be based on the guiding principles of

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reliability, efficiency, affordability, and diversity, and more

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specifically on the following principles:

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     1. The state should have a reliable supply of electricity

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and have adequate reserves.

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     2. The transmission and delivery of electricity should be

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reliable.

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     3. The generation, transmission, and delivery of

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electricity should be accomplished with the least detriment to

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the environment and public health.

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     4. The generation, transmission, and delivery of

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electricity should be accomplished compatibly with the goals of

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growth management.

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     5. Electricity generation, transmission, and delivery

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facilities should be reasonably secure from damage, taking all

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factors into consideration, and recovery from damage should be

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prompt.

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     6. Electric rates should be affordable as to base rates and

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all recovery-clause additions, and there should be sufficient

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incentives for utilities to achieve this goal.

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

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fuels under normal circumstances and during hurricanes and other

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emergency situations.

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

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alternative energy technologies and alternative motor vehicle

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fuels should be encouraged.

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

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in achieving the goals enumerated in this subsection.

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     10. Consumers of energy should be encouraged and given

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incentives to be more efficient in their use of energy.

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It is the specific intent of the Legislature that this section

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

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responsibilities of the Public Service Commission or the powers,

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duties, and responsibilities assigned by the Florida Electrical

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Power Plant Siting Act, ss. 403.501-403.518.

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     (5) The center shall establish one or more corporate

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offices, at least one of which must be located in Leon County.

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     (6) The center shall be governed by a board of directors

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consisting of the following members:

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     (a) The Governor or his or her designee.

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     (b) The Commissioner of Agriculture or his or her designee.

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     (c) The Chief Financial Officer or his or her designee.

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

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

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

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Representatives.

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     (g) The chairman of the Florida Public Service Commission

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or his or her designee.

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

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her designee.

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     (i) A representative from the State Board of Education,

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selected by the members of that board.

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

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Florida Energy Commission and one other member of that commission

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to be selected by the commission members.

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     (k) Any additional board members selected by a consensus of

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all existing members of the governing board to assist the center

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in carrying out its functions and duties under this section.

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

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member may not serve more than two consecutive terms.

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     (8) The Governor shall serve as chairperson of the board.

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The members of the board of directors must select a vice

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chairperson biennially, upon selection of any new members. The

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center's president shall keep a record of the proceedings of the

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board of directors; act as custodian of all books, documents, and

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papers filed with the board of directors; and keep the minutes of

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the board of directors.

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

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

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

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membership. A majority of the total number of all directors

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

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

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quorum is present.

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     (10) Members of the board of directors serve without

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

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

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determined by the board.

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

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otherwise required to file a financial disclosure pursuant to s.

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

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disclosure of financial interests pursuant to s. 112.3145.

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     (12) The center's board of directors must appoint a

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corporate president and establish and adjust the president's

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compensation. The president is the chief administrative and

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operational officer of the board of directors and of the center,

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and shall direct and supervise other employees in accomplishing

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the goals and tasks set forth in this section.

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

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commissions may provide such services to the center within each

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entity's respective functions as may be requested by the center.

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Upon request of the center, the Governor may temporarily transfer

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to the center any officers or employees as are considered

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necessary from time to time in order to assist the center in

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carrying out its functions and duties under this section.

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Officers and employees so transferred do not lose their career

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service, select exempt, or senior management status or rights.

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     (14) The center shall receive funding from the state

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through the Florida Alternative Energy Center Trust Fund pursuant

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to general law. The board of directors, officers, and employees

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of the center are responsible for the prudent use of all public

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and private funds within the center's control and must ensure

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

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bylaws, and contractual requirements. In performing all of its

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functions, the center shall take all possible steps to ensure the

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maximum benefit to the state. As part of its duties, the center

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shall establish strategic priorities, consistent with this

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section, to guide funding and resource allocations and ensure the

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best use of available resources.

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     (15) By December 31 each year, the center must submit an

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annual report to the Governor, the Commissioner of Agriculture,

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the Chief Financial Officer, the Attorney General, the President

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of the Senate, and the Speaker of the House of Representatives

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containing:

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     (a) A detailed description of the center's activities and

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accomplishments for the year.

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     (b) A certified audit by an independent public accountant

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of resources and expenditures prepared by an independent

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certified public accountant.

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     (c) A statement of the center's strategic priorities and an

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explanation of their use in guiding resource allocations.

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     Section 2.  Section 288.10895, Florida Statutes, is created

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to read:

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     288.10895 Alternative Energy Incentive Program.--

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

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Program is created and shall be operated by the Florida

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Alternative Energy Center. The program shall encourage economic

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development and research and development in the state which will

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commercialize alternative energy innovations and develop new

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alternative energy manufacturing, blending, power generation, and

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distribution facilities.

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

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

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

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the following fuels or energy sources: ethanol, biodiesel,

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

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wind, or geothermal.

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

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

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sector wages in the county or in the standard metropolitan area

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in which the project is located as determined by the Agency for

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Workforce Innovation.

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     (c) "Center" means the Florida Alternative Energy Center.

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     (d) "Commission" means the Administration Commission, as

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set forth in s. 14.202.

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

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term is consistent with terms used by the Agency for Workforce

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Innovation and the United States Department of Labor for purposes

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of unemployment compensation tax administration and employment

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estimation, resulting directly from a project in this state. The

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term does not include temporary construction jobs.

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

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

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wages, rental expenses, travel expenses, unrecovered indirect

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costs, and purchases of material and supplies as a direct benefit

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to the project, or noncash contributions necessary and reasonable

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for proper and efficient accomplishment of project objectives.

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The value of noncash contributions shall be established using the

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following guidelines:

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     1. Rates for donated or volunteer services of any person

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must be consistent with their regular rate of pay, or the rate of

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pay of those paid for similar work at a similar level of

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experience in the labor market, including the value of fringe

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benefits.

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

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supplies or workshop supplies, may not exceed the fair market

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value of the property.

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

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not exceed the fair market value of the property.

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

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comparable space and facilities in a privately owned building in

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the same locale.

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

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rental value.

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

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approved state rate as defined in s. 112.061.

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

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Alternative Energy Center.

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     (3) ALTERNATIVE ENERGY BUSINESS PROJECT.--

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     (a) "Business project" means the location to or expansion

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in this state of a business that grows, harvests, and processes

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feedstock or other raw materials used in the creation of

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alternative energy; manufactures, blends, or distributes

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alternative energy; generates power for sale in this state from

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an alternative energy source; or develops new or expanded

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infrastructure in this state for the commercialization or

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distribution of alternative energy.

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     (b) In order to qualify for consideration under the

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Alternative Energy Incentive Program, a business project must, at

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a minimum, establish to the satisfaction of the center that:

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     1. The business project is located in this state;

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     2. The jobs created by the business project pay an

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estimated annual average wage that equals at least 130 percent of

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the average private-sector wage. The average wage requirement may

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be waived if the center determines that the merits of the

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individual project or the specific circumstances warrant such

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action;

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     3. The business project includes matching funds provided by

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the applicant, the local community, or other available sources.

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The match requirement may be waived if the center determines that

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the merits of the individual project or the specific

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circumstances warrant such action; and

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     4. The business project meets one of the following

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criteria:

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     a. Results in the creation of at least 20 direct, new jobs

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at the business;

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     b. Consists of an activity that grows, harvests, and

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processes feedstock or other raw materials in this state which

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are used in the production of alternative energy or is an

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activity or product that uses such feedstock or other raw

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materials grown or produced in this state;

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

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within a 5-year period; or

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     d. Incorporates an innovative new technology or an

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innovative application of an existing technology.

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     (4) ALTERNATIVE ENERGY RESEARCH AND DEVELOPMENT PROJECT.--

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     (a) "Research and development project" means basic and

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applied research that is conducted in this state in the sciences

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or engineering and that relates to the development,

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manufacturing, blending, or use of new and existing alternative

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energy technologies. A research and development project does not

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include market research, routine consumer product testing, sales

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research, research in the social sciences or psychology,

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nontechnological activities, or technical services.

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     (b) In order to qualify for consideration under the

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Alternative Energy Incentive Program, a research and development

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project must, at a minimum, establish to the satisfaction of the

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center that:

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     1. The research and development project will be located in

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this state;

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     2. The jobs created by the research and development project

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will pay an estimated annual average wage that equals at least

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130 percent of the average private-sector wage. The average wage

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requirement may be waived if the center determines that the

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merits of the individual project or the specific circumstances

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warrant such action;

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     3. The research and development project includes matching

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funds provided by the applicant, a public or private university

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or research institution, the local community, or other available

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sources. The match requirement may be waived if the center

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determines that the merits of the individual project or the

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specific circumstances warrant such action;

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     4. The research and development project includes a plan for

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significant collaboration with an institution of higher education

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in the state; and

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     5. The research and development project includes a plan for

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the commercialization of the research through direct use by the

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applicant in this state or the transfer or licensing of new

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technology to Florida-based businesses that produce alternative

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energy for use or sale within the state.

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

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research and development project applicant must submit a written

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application to the center showing how the award would support the

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location of new operations in this state or the expansion of an

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existing operation in this state. The application must include,

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but need not be limited to:

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     (a) The applicant's federal employer identification number,

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unemployment account number, state sales tax registration number,

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or related documentation. If such numbers are not available at

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the time of application, the numbers must be submitted to the

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center in writing before the disbursement of any payments under

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this section.

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

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project or the research and development project is located or is

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to be located.

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

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product, or research and development undertaken by the applicant,

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including six-digit North American Industry Classification System

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codes for all activities included in the project.

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

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project or the research and development project.

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

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project or the research and development project.

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

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state the applicant anticipates having created as of December 31

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of each year in the business project or the research and

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development project and the average annual wage of such jobs.

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

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currently employed by the applicant in this state, if applicable.

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     (h) The anticipated commencement date of the business

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project or the research and development project.

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     (i) A detailed explanation of why funding under the

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Alternative Energy Incentive Program is needed to induce the

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

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would cause the applicant to locate or expand in this state.

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

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revenues resulting from the business project or the research and

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development project which will be generated outside this state.

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     (k) A recommendation for specific performance criteria that

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the applicant would be expected to achieve in order to receive

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payments from the fund and penalties or sanctions for failure to

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meet or maintain performance conditions.

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

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and development project to stimulate additional investment and

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employment opportunities that equal or exceed 130 percent of the

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average private-sector wage.

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

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development project:

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

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of alternative energy.

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     2. Has or could have a significant collaborative research

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and development relationship with one or more universities or

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community colleges in this state.

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

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transferred or licensed to Florida-based businesses.

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     (6) AWARD AMOUNT.--The center may negotiate the proposed

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amount of an award for any applicant meeting the requirements of

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this section. In negotiating such award, the center shall

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consider the amount of the incentive needed to cause the

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applicant to locate or expand in this state in conjunction with

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other relevant effect and cost information and analysis as

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described in this section.

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

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criteria identified in this section and completing the

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evaluation, the president shall recommend to the commission the

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approval or disapproval of an award. In recommending approval of

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an award, the president shall include proposed performance

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conditions that the applicant must meet in order to obtain

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incentive funds and any other conditions that must be met before

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the receipt of any incentive funds. The commission shall consult

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with the President of the Senate and the Speaker of the House of

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Representatives before giving approval for an award. Upon

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approval of an award, the center shall release the funds pursuant

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to the legislative consultation and review requirements set forth

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in s. 216.177.

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

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

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president shall issue a letter certifying the applicant as

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qualified for an award. The center and the applicant shall enter

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into an agreement that sets forth the conditions for payment of

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funds under the Alternative Energy Incentive Program, including,

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but not limited to, the total amount of funds awarded, the

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performance conditions that must be met in order to obtain the

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award or portions of the award, the methodology for validating

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performance, the schedule of payments, and sanctions for failure

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to meet performance conditions, including any clawback

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provisions.

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     (9) VALIDATION.--The center shall validate the performance

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of business projects and research and development projects that

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have received an award under the Alternative Energy Incentive

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Program. At the conclusion of an award agreement, or its earlier

480

termination, the center shall, within 90 days, report the results

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of the award under the Alternative Energy Incentive Program to

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the members of the commission, the President of the Senate, and

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the Speaker of the House of Representatives.

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     Section 3.  This act shall take effect upon becoming a law.