HB 7229

1	A bill to be entitled
2	An act relating to economic incentives for energy
3	initiatives; amending s. 377.601, F.S.; revising
4	legislative intent relating to the state's energy policy;
5	amending s. 377.703, F.S.; conforming cross-references;
6	amending s. 212.08, F.S.; providing definitions; providing
7	sales and use tax exemptions for electric-powered
8	automobiles, natural gas vehicles, and fueling stations
9	for such automobiles and vehicles; extending the sales and
10	use tax exemptions for certain renewable energy
11	technologies; amending s. 220.192, F.S.; extending the
12	renewable energy technologies investment tax credit and
13	applying the credit to certain investments in solar energy
14	systems; defining the term "solar energy system"; revising
15	the eligible cost limit for investments in biodiesel and
16	ethanol; transferring certain duties relating to such tax
17	credits from the Department of Environmental Protection to
18	the Florida Energy and Climate Commission; amending s.
19	220.193, F.S.; extending the renewable energy production
20	credit; amending s. 366.02, F.S.; revising the definition
21	of the term "public utility" for purposes of regulating
22	such utilities; creating s. 366.90, F.S.; providing
23	legislative intent relating to renewable energy production
24	of electricity; amending s. 366.91, F.S.; deleting
25	legislative intent provisions to conform to changes made
26	by the act; revising definitions of the terms "biomass"
27	and "renewable energy"; requiring public utilities to
28	purchase renewable energy from producers at full avoided
29	cost under certain circumstances; providing that renewable
30	energy producers are entitled to sell electrical energy to
31	a public utility at full avoided cost under certain
32	circumstances; providing legislative findings; providing
33	for the calculation of full avoided cost for such
34	purchases of renewable energy; declaring that certain
35	actions taken by the Public Service Commission are not
36	actions relating to utility rates or services; amending s.
37	366.92, F.S.; deleting the legislative intent provisions;
38	deleting and revising definitions; deleting provisions for
39	the renewable portfolio standard and renewable energy
40	credits; providing a mechanism for providers to recover
41	costs to produce or purchase specified amounts of
42	renewable energy through the environmental cost-recovery
43	clause under certain conditions; requiring providers to
44	include specified information related to renewable energy
45	development in a certain report; authorizing a developer
46	of solar energy generation to locate a solar energy
47	generation facility on the premises of a host consumer
48	under certain circumstances; requiring the commission to
49	adopt rules and submit reports to the Legislature;
50	amending s. 403.503, F.S.; revising the definition of
51	"electrical power plant" for purposes of the Florida
52	Electrical Power Plant Siting Act; amending ss. 288.9602
53	and 288.9603, F.S.; revising legislative findings and
54	declarations and definitions for purposes of the Florida
55	Development Finance Corporation Act; amending s. 288.9604,
56	F.S.; revising requirements for the establishment and
57	organization of the Florida Development Finance
58	Corporation; amending s. 288.9605, F.S.; revising the
59	powers of the corporation; amending s. 288.9606, F.S.;
60	revising requirements for the corporation's issuance of
61	revenue bonds; amending s. 288.9607, F.S.; limiting the
62	corporation's approval of guaranties for debt service for
63	bonds or other indebtedness for any one capital project;
64	deleting provisions for the corporation's investment of
65	certain funds in the State Transportation Trust Fund;
66	authorizing guarantees to be used in conjunction with
67	federal guaranty programs; amending s. 288.9608, F.S.;
68	creating the Energy, Technology, and Economic Development
69	Guaranty Fund; providing for the deposit of certain moneys
70	in the fund; deleting requirements for the corporation's
71	debt service reserve account and Revenue Bond Guaranty
72	Reserve Account; amending ss. 288.9609, 288.9610, 206.46,
73	215.47, 339.08, and 339.135, F.S.; conforming provisions
74	to changes made by the act; providing for severability;
75	providing an effective date.
76
77	Be It Enacted by the Legislature of the State of Florida:
78
79	Section 1.  Section 377.601, Florida Statutes, is amended
80	to read:
81	377.601  Legislative intent.-
82	(1)  The purpose of the state's energy policy is to ensure
83	an adequate and reliable supply of energy for the state in a
84	manner that promotes the health and welfare of the public,
85	promotes sustainable economic growth, and minimizes and
86	mitigates any adverse impacts. The Legislature intends that
87	governance of the state's energy policy be efficiently directed
88	toward achieving this purpose. The Legislature finds that the
89	state's energy security can be increased by lessening dependence
90	on foreign oil; that the impacts of global climate change can be
91	reduced through the reduction of greenhouse gas emissions; and
92	that the implementation of alternative energy technologies can
93	be a source of new jobs and employment opportunities for many
94	Floridians. The Legislature further finds that the state is
95	positioned at the front line against potential impacts of global
96	climate change. Human and economic costs of those impacts can be
97	averted by global actions and, where necessary, adapted to by a
98	concerted effort to make Florida's communities more resilient
99	and less vulnerable to these impacts. In focusing the
100	government's policy and efforts to benefit and protect our
101	state, its citizens, and its resources, the Legislature believes
102	that a single government entity with a specific focus on energy
103	and climate change is both desirable and advantageous. Further,
104	the Legislature finds that energy infrastructure provides the
105	foundation for secure and reliable access to the energy supplies
106	and services on which Florida depends. Therefore, there is
107	significant value to Florida consumers that comes from
108	investment in Florida's energy infrastructure that increases
109	system reliability, enhances energy independence and
110	diversification, stabilizes energy costs, and reduces greenhouse
111	gas emissions.
112	(2)  In furtherance of this purpose, the state's energy
113	policy shall be implemented through effective, efficient, and
114	reliable governance and shall be guided by the following goals
115	in order of their priority:
116	(a)  Ensuring an affordable energy supply.
117	(b)  Ensuring adequate supply and capacity.
118	(c)  Ensuring a secure and reliable energy supply.
119	(d)  Minimizing energy cost volatility.
120	(e)  Minimizing the negative impacts of energy production
121	on the state's environment, social fabric, and the public health
122	and welfare.
123	(f)  Maximizing economic synergies for the state associated
124	with its energy policy.
125	(g)  Reducing the net export of energy expenditures.
126	(3)  It is further the policy of the state of Florida to:
127	(a)  Develop and promote the effective use of energy in the
128	state, discourage all forms of energy waste, and recognize and
129	address the potential of global climate change wherever
130	possible.
131	(b)  Play a leading role in developing and instituting
132	energy management programs aimed at promoting energy
133	conservation, energy security, and the reduction of greenhouse
134	gas emissions.
135	(c)  Include energy considerations in all state, regional,
136	and local planning.
137	(d)  Utilize and manage effectively energy resources used
138	within state agencies.
139	(e)  Encourage local governments to include energy
140	considerations in all planning and to support their work in
141	promoting energy management programs.
142	(f)  Include the full participation of citizens in the
143	development and implementation of energy programs.
144	(g)  Consider in its decisions the energy needs of each
145	economic sector, including residential, industrial, commercial,
146	agricultural, and governmental uses, and reduce those needs
147	whenever possible.
148	(h)  Promote energy education and the public dissemination
149	of information on energy and its environmental, economic, and
150	social impact.
151	(i)  Encourage the research, development, demonstration,
152	and application of alternative energy resources, particularly
153	renewable energy resources.
154	(j)  Consider, in its decisionmaking, the social, economic,
155	and environmental impacts of energy-related activities,
156	including the whole-life-cycle impacts of any potential energy
157	use choices, so that detrimental effects of these activities are
158	understood and minimized.
159	(k)  Develop and maintain energy emergency preparedness
160	plans to minimize the effects of an energy shortage within
161	Florida.
162	Section 2.  Subsection (1) and paragraph (f) of subsection
163	(2) of section 377.703, Florida Statutes, is amended to read:
164	377.703  Additional functions of the Florida Energy and
165	Climate Commission.-
166	(1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
167	demand questions have become a major area of concern to the
168	state which must be dealt with by effective and well-coordinated
169	state action, it is the intent of the Legislature to promote the
170	efficient, effective, and economical management of energy
171	problems, centralize energy coordination responsibilities,
172	pinpoint responsibility for conducting energy programs, and
173	ensure the accountability of state agencies for the
174	implementation of s. 377.601(2), the state energy policy. It is
175	the specific intent of the Legislature that nothing in this act
176	shall in any way change the powers, duties, and responsibilities
177	assigned by the Florida Electrical Power Plant Siting Act, part
178	II of chapter 403, or the powers, duties, and responsibilities
179	of the Florida Public Service Commission.
180	(2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
181	commission shall perform the following functions consistent with
182	the development of a state energy policy:
183	(f)  The commission shall submit an annual report to the
184	Governor and the Legislature reflecting its activities and
185	making recommendations of policies for improvement of the
186	state's response to energy supply and demand and its effect on
187	the health, safety, and welfare of the people of Florida. The
188	report shall include a report from the Florida Public Service
189	Commission on electricity and natural gas and information on
190	energy conservation programs conducted and underway in the past
191	year and shall include recommendations for energy conservation
192	programs for the state, including, but not limited to, the
193	following factors:
194	1.  Formulation of specific recommendations for improvement
195	in the efficiency of energy utilization in governmental,
196	residential, commercial, industrial, and transportation sectors.
197	2.  Collection and dissemination of information relating to
198	energy conservation.
199	3.  Development and conduct of educational and training
200	programs relating to energy conservation.
201	4.  An analysis of the ways in which state agencies are
202	seeking to implement s. 377.601(2), the state energy policy, and
203	recommendations for better fulfilling this policy.
204	Section 3.  Paragraph (ccc) of subsection (7) of section
205	212.08, Florida Statutes, is amended to read:
206	212.08  Sales, rental, use, consumption, distribution, and
207	storage tax; specified exemptions.-The sale at retail, the
208	rental, the use, the consumption, the distribution, and the
209	storage to be used or consumed in this state of the following
210	are hereby specifically exempt from the tax imposed by this
211	chapter.
212	(7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any
213	entity by this chapter do not inure to any transaction that is
214	otherwise taxable under this chapter when payment is made by a
215	representative or employee of the entity by any means,
216	including, but not limited to, cash, check, or credit card, even
217	when that representative or employee is subsequently reimbursed
218	by the entity. In addition, exemptions provided to any entity by
219	this subsection do not inure to any transaction that is
220	otherwise taxable under this chapter unless the entity has
221	obtained a sales tax exemption certificate from the department
222	or the entity obtains or provides other documentation as
223	required by the department. Eligible purchases or leases made
224	with such a certificate must be in strict compliance with this
225	subsection and departmental rules, and any person who makes an
226	exempt purchase with a certificate that is not in strict
227	compliance with this subsection and the rules is liable for and
228	shall pay the tax. The department may adopt rules to administer
229	this subsection.
230	(ccc)  Equipment, machinery, and other materials for
231	renewable energy technologies.-
232	1.  As used in this paragraph, the term:
233	a.  "Biodiesel" means the mono-alkyl esters of long-chain
234	fatty acids derived from plant or animal matter for use as a
235	source of energy and meeting the specifications for biodiesel
236	and biodiesel blends with petroleum products as adopted by the
237	Department of Agriculture and Consumer Services. Biodiesel may
238	refer to biodiesel blends designated BXX, where XX represents
239	the volume percentage of biodiesel fuel in the blend.
240	b.  "Electric-powered automobile" means an automobile
241	powered solely by electricity that is approved by the Federal
242	Government for highway travel.
243	c.b.  "Ethanol" means an anhydrous denatured alcohol
244	produced by the conversion of carbohydrates meeting the
245	specifications for fuel ethanol and fuel ethanol blends with
246	petroleum products as adopted by the Department of Agriculture
247	and Consumer Services. Ethanol may refer to fuel ethanol blends
248	designated EXX, where XX represents the volume percentage of
249	fuel ethanol in the blend.
250	d.c.  "Hydrogen fuel cells" means equipment using hydrogen
251	or a hydrogen-rich fuel in an electrochemical process to
252	generate energy, electricity, or the transfer of heat.
253	e.  "Natural gas vehicle" means an automobile or other
254	motor vehicle powered by natural gas or compressed natural gas.
255	2.  The sale or use of the following in the state is exempt
256	from the tax imposed by this chapter:
257	a.  Natural gas vehicles, compressed natural gas fueling
258	stations, electric-powered automobiles, and electric-fueling
259	stations for automobiles, up to a limit of $2 million in tax
260	each state fiscal year for all taxpayers Hydrogen-powered
261	vehicles, materials incorporated into hydrogen-powered vehicles,
262	and hydrogen-fueling stations, up to a limit of $2 million in
263	tax each state fiscal year for all taxpayers.
264	b.  Commercial stationary hydrogen fuel cells, up to a
265	limit of $1 million in tax each state fiscal year for all
266	taxpayers.
267	c.  Materials used in the distribution of biodiesel (B10-
268	B100) and ethanol (E10-E100), including fueling infrastructure,
269	transportation, and storage, up to a limit of $1 million in tax
270	each state fiscal year for all taxpayers. Gasoline fueling
271	station pump retrofits for ethanol (E10-E100) distribution
272	qualify for the exemption provided in this sub-subparagraph.
273	3.  The Florida Energy and Climate Commission shall provide
274	to the department a list of items eligible for the exemption
275	provided in this paragraph.
276	4.a.  The exemption provided in this paragraph shall be
277	available to a purchaser only through a refund of previously
278	paid taxes. An eligible item is subject to refund one time. A
279	person who has received a refund on an eligible item shall
280	notify the next purchaser of the item that such item is no
281	longer eligible for a refund of paid taxes. This notification
282	shall be provided to each subsequent purchaser on the sales
283	invoice or other proof of purchase.
284	b.  To be eligible to receive the exemption provided in
285	this paragraph, a purchaser shall file an application with the
286	Florida Energy and Climate Commission. The application shall be
287	developed by the Florida Energy and Climate Commission, in
288	consultation with the department, and shall require:
289	(I)  The name and address of the person claiming the
290	refund.
291	(II)  A specific description of the purchase for which a
292	refund is sought, including, when applicable, a serial number or
293	other permanent identification number.
294	(III)  The sales invoice or other proof of purchase showing
295	the amount of sales tax paid, the date of purchase, and the name
296	and address of the sales tax dealer from whom the property was
297	purchased.
298	(IV)  A sworn statement that the information provided is
299	accurate and that the requirements of this paragraph have been
300	met.
301	c.  Within 30 days after receipt of an application, the
302	Florida Energy and Climate Commission shall review the
303	application and shall notify the applicant of any deficiencies.
304	Upon receipt of a completed application, the Florida Energy and
305	Climate Commission shall evaluate the application for exemption
306	and issue a written certification that the applicant is eligible
307	for a refund or issue a written denial of such certification
308	within 60 days after receipt of the application. The Florida
309	Energy and Climate Commission shall provide the department with
310	a copy of each certification issued upon approval of an
311	application.
312	d.  Each certified applicant shall be responsible for
313	forwarding a certified copy of the application and copies of all
314	required documentation to the department within 6 months after
315	certification by the Florida Energy and Climate Commission.
316	e.  A refund approved pursuant to this paragraph shall be
317	made within 30 days after formal approval by the department.
318	f.  The Florida Energy and Climate Commission may adopt the
319	form for the application for a certificate, requirements for the
320	content and format of information submitted to the Florida
321	Energy and Climate Commission in support of the application,
322	other procedural requirements, and criteria by which the
323	application will be determined by rule. The department may adopt
324	all other rules pursuant to ss. 120.536(1) and 120.54 to
325	administer this paragraph, including rules establishing
326	additional forms and procedures for claiming this exemption.
327	g.  The Florida Energy and Climate Commission shall be
328	responsible for ensuring that the total amounts of the
329	exemptions authorized do not exceed the limits as specified in
330	subparagraph 2.
331	5.  The Florida Energy and Climate Commission shall
332	determine and publish on a regular basis the amount of sales tax
333	funds remaining in each fiscal year.
334	6.  This paragraph expires July 1, 2016 2010.
335	Section 4.  Paragraph (c) of subsection (1) of section
336	220.192, Florida Statutes, is amended, paragraph (f) of that
337	subsection is redesignated as paragraph (g), a new paragraph (f)
338	is added to that subsection, and subsections (2), (4), and (5)
339	of that section are amended, to read:
340	220.192  Renewable energy technologies investment tax
341	credit.-
342	(1)  DEFINITIONS.-For purposes of this section, the term:
343	(c)  "Eligible costs" means:
344	1.  Seventy-five percent of all capital costs, operation
345	and maintenance costs, and research and development costs
346	incurred between July 1, 2006, and June 30, 2016 2010, up to a
347	limit of $3 million per state fiscal year for all taxpayers, in
348	connection with an investment in hydrogen-powered vehicles and
349	hydrogen vehicle fueling stations in the state, including, but
350	not limited to, the costs of constructing, installing, and
351	equipping such technologies in the state.
352	2.  Seventy-five percent of all capital costs, operation
353	and maintenance costs, and research and development costs
354	incurred between July 1, 2006, and June 30, 2016 2010, up to a
355	limit of $1.5 million per state fiscal year for all taxpayers,
356	and limited to a maximum of $12,000 per fuel cell, in connection
357	with an investment in commercial stationary hydrogen fuel cells
358	in the state, including, but not limited to, the costs of
359	constructing, installing, and equipping such technologies in the
360	state.
361	3.  Seventy-five percent of all capital costs, operation
362	and maintenance costs, and research and development costs
363	incurred between July 1, 2006, and June 30, 2016 2010, up to a
364	limit of $6 $6.5 million per state fiscal year for all
365	taxpayers, in connection with an investment in the production,
366	storage, and distribution of biodiesel (B10-B100) and ethanol
367	(E10-E100) in the state, including the costs of constructing,
368	installing, and equipping such technologies in the state.
369	Gasoline fueling station pump retrofits for ethanol (E10-E100)
370	distribution qualify as an eligible cost under this
371	subparagraph.
372	4.  Fifty percent of all capital costs incurred between
373	July 1, 2010, and June 30, 2016, in connection with an
374	investment in solar energy systems in the state, up to a limit
375	of $500,000 per system and up to a limit of $7.5 million per
376	state fiscal year for all taxpayers. To be eligible, such system
377	must comply with state interconnection standards as provided by
378	the Public Service Commission. The eligible costs shall be
379	reapportioned equally over 5 years.
380	(f)  "Solar energy system" means equipment that provides
381	for the collection and use of incident solar energy for water
382	heating, space heating or cooling, or other applications that
383	would normally require a conventional source of energy such as
384	petroleum products, natural gas, or electricity that performs
385	primarily with solar energy. In other systems in which solar
386	energy is used in a supplemental way, only those components that
387	collect and transfer solar energy are included in this
388	definition.
389	(2)  TAX CREDIT.-
390	(a)  For tax years beginning on or after January 1, 2007, a
391	credit against the tax imposed by this chapter shall be granted
392	in an amount equal to the eligible costs defined in
393	subparagraphs (1)(c)1.-3. Such credits may be used in tax years
394	beginning January 1, 2007, and ending December 31, 2016 2010,
395	after which the credit shall expire. If the credit is not fully
396	used in any one tax year because of insufficient tax liability
397	on the part of the corporation, the unused amount may be carried
398	forward and used in tax years beginning January 1, 2007, and
399	ending December 31, 2018 2012, after which the credit carryover
400	expires and may not be used. A taxpayer that files a
401	consolidated return in this state as a member of an affiliated
402	group under s. 220.131(1) may be allowed the credit on a
403	consolidated return basis up to the amount of tax imposed upon
404	the consolidated group. Any eligible cost for which a credit is
405	claimed and which is deducted or otherwise reduces federal
406	taxable income shall be added back in computing adjusted federal
407	income under s. 220.13.
408	(b)  For tax years beginning on or after January 1, 2010, a
409	credit against the tax imposed by this chapter shall be granted
410	in an amount equal to the eligible costs defined in subparagraph
411	(1)(c)4. Such credits may be used in tax years beginning January
412	1, 2010, and ending December 31, 2016, after which the credit
413	shall expire. If the credit is not fully used in any one tax
414	year because of insufficient tax liability on the part of the
415	corporation, the unused amount may be carried forward and used
416	in tax years beginning January 1, 2010, and ending December 31,
417	2021, after which the credit carryover expires and may not be
418	used. A taxpayer that files a consolidated return in this state
419	as a member of an affiliated group under s. 220.131(1) may be
420	allowed the credit on a consolidated return basis up to the
421	amount of tax imposed upon the consolidated group. Any eligible
422	cost for which a credit is claimed and which is deducted or
423	otherwise reduces federal taxable income shall be added back in
424	computing adjusted federal income under s. 220.13.
425	(4)  TAXPAYER APPLICATION PROCESS.-To claim a credit under
426	this section, each taxpayer must apply to the Florida Energy and
427	Climate Commission Department of Environmental Protection for an
428	allocation of each type of annual credit by the date established
429	by the Florida Energy and Climate Commission Department of
430	Environmental Protection. The application form may be
431	established by the Florida Energy and Climate Commission
432	Department of Environmental Protection and shall include an
433	affidavit from each taxpayer certifying that all information
434	contained in the application, including all records of eligible
435	costs claimed as the basis for the tax credit, are true and
436	correct. Approval of the credits under this section shall be
437	accomplished on a first-come, first-served basis, based upon the
438	date complete applications are received by the Florida Energy
439	and Climate Commission Department of Environmental Protection. A
440	taxpayer shall submit only one complete application based upon
441	eligible costs incurred within a particular state fiscal year.
442	Incomplete placeholder applications will not be accepted and
443	will not secure a place in the first-come, first-served
444	application line. If a taxpayer does not receive a tax credit
445	allocation due to the exhaustion of the annual tax credit
446	authorizations, then such taxpayer may reapply in the following
447	year for those eligible costs and will have priority over other
448	applicants for the allocation of credits.
449	(5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
450	CREDITS.-
451	(a)  In addition to its existing audit and investigation
452	authority, the Department of Revenue may perform any additional
453	financial and technical audits and investigations, including
454	examining the accounts, books, and records of the tax credit
455	applicant, that are necessary to verify the eligible costs
456	included in the tax credit return and to ensure compliance with
457	this section. The Florida Energy and Climate Commission
458	Department of Environmental Protection shall provide technical
459	assistance when requested by the Department of Revenue on any
460	technical audits or examinations performed pursuant to this
461	section.
462	(b)  It is grounds for forfeiture of previously claimed and
463	received tax credits if the Department of Revenue determines, as
464	a result of either an audit or examination or from information
465	received from the Florida Energy and Climate Commission
466	Department of Environmental Protection, that a taxpayer received
467	tax credits pursuant to this section to which the taxpayer was
468	not entitled. The taxpayer is responsible for returning
469	forfeited tax credits to the Department of Revenue, and such
470	funds shall be paid into the General Revenue Fund of the state.
471	(c)  The Florida Energy and Climate Commission Department
472	of Environmental Protection may revoke or modify any written
473	decision granting eligibility for tax credits under this section
474	if it is discovered that the tax credit applicant submitted any
475	false statement, representation, or certification in any
476	application, record, report, plan, or other document filed in an
477	attempt to receive tax credits under this section. The Florida
478	Energy and Climate Commission Department of Environmental
479	Protection shall immediately notify the Department of Revenue of
480	any revoked or modified orders affecting previously granted tax
481	credits. Additionally, the taxpayer must notify the Department
482	of Revenue of any change in its tax credit claimed.
483	(d)  The taxpayer shall file with the Department of Revenue
484	an amended return or such other report as the Department of
485	Revenue prescribes by rule and shall pay any required tax and
486	interest within 60 days after the taxpayer receives notification
487	from the Florida Energy and Climate Commission Department of
488	Environmental Protection that previously approved tax credits
489	have been revoked or modified. If the revocation or modification
490	order is contested, the taxpayer shall file an amended return or
491	other report as provided in this paragraph within 60 days after
492	a final order is issued following proceedings.
493	(e)  A notice of deficiency may be issued by the Department
494	of Revenue at any time within 3 years after the taxpayer
495	receives formal notification from the Florida Energy and Climate
496	Commission Department of Environmental Protection that
497	previously approved tax credits have been revoked or modified.
498	If a taxpayer fails to notify the Department of Revenue of any
499	changes to its tax credit claimed, a notice of deficiency may be
500	issued at any time.
501	Section 5.  Paragraphs (b) and (g) of subsection (3) of
502	section 220.193, Florida Statutes, are amended to read:
503	220.193  Florida renewable energy production credit.-
504	(3)  An annual credit against the tax imposed by this
505	section shall be allowed to a taxpayer, based on the taxpayer's
506	production and sale of electricity from a new or expanded
507	Florida renewable energy facility. For a new facility, the
508	credit shall be based on the taxpayer's sale of the facility's
509	entire electrical production. For an expanded facility, the
510	credit shall be based on the increases in the facility's
511	electrical production that are achieved after May 1, 2006.
512	(b)  The credit may be claimed for electricity produced and
513	sold on or after January 1, 2007. Beginning in 2008 and
514	continuing until 2017 2011, each taxpayer claiming a credit
515	under this section must first apply to the department by
516	February 1 of each year for an allocation of available credit.
517	The department, in consultation with the commission, shall
518	develop an application form. The application form shall, at a
519	minimum, require a sworn affidavit from each taxpayer certifying
520	the increase in production and sales that form the basis of the
521	application and certifying that all information contained in the
522	application is true and correct.
523	(g)  Notwithstanding any other provision of this section,
524	credits for the production and sale of electricity from a new or
525	expanded Florida renewable energy facility may be earned between
526	January 1, 2007, and June 30, 2016 2010. The combined total
527	amount of tax credits which may be granted for all taxpayers
528	under this section is limited to $5 million per state fiscal
529	year.
530	Section 6.  Section 366.02, Florida Statutes, is amended to
531	read:
532	366.02  Definitions.-As used in this chapter, the term:
533	(1)  "Public utility" means every person, corporation,
534	partnership, association, or other legal entity and their
535	lessees, trustees, or receivers supplying electricity or gas
536	(natural, manufactured, or similar gaseous substance) to or for
537	the public within this state.; but The term "public utility"
538	does not include: either
539	(a)  A cooperative now or hereafter organized and existing
540	under the Rural Electric Cooperative Law of the state.;
541	(b)  A municipality or any agency thereof.;
542	(c)  Any dependent or independent special natural gas
543	district.;
544	(d)  Any natural gas transmission pipeline company making
545	only sales or transportation delivery of natural gas at
546	wholesale and to direct industrial consumers.;
547	(e)  Any entity selling or arranging for sales of natural
548	gas which neither owns nor operates natural gas transmission or
549	distribution facilities within the state.; or
550	(f)  A person supplying liquefied petroleum gas, in either
551	liquid or gaseous form, irrespective of the method of
552	distribution or delivery, or owning or operating facilities
553	beyond the outlet of a meter through which natural gas is
554	supplied for compression and delivery into motor vehicle fuel
555	tanks or other transportation containers, unless such person
556	also supplies electricity or manufactured or natural gas.
557	(g)  The developer of a solar energy generation facility
558	that has a gross power rating of 2 megawatts or less, is located
559	on the premises of a host consumer, and supplies electricity
560	exclusively for sale to the host consumer for consumption only
561	on such premises and contiguous property owned or leased by the
562	host consumer, regardless of interruptions in contiguity caused
563	by easements, public thoroughfares, transportation rights-of-
564	way, or utility rights-of-way, except if such premises or
565	contiguous property includes a multifamily residential building.
566	(2)  "Electric utility" means any municipal electric
567	utility, investor-owned electric utility, or rural electric
568	cooperative which owns, maintains, or operates an electric
569	generation, transmission, or distribution system within the
570	state.
571	(3)  "Commission" means the Florida Public Service
572	Commission.
573	Section 7.  Section 366.90, Florida Statutes, is created to
574	read:
575	366.90  Renewable energy for electricity production.-In
576	furtherance of the energy policy goals established in s.
577	377.601, the Legislature finds that it is in the public interest
578	to promote the development of renewable energy resources in the
579	state, for purposes of electricity production, through the
580	mechanisms established in ss. 366.91 and 366.92. The Legislature
581	further finds that renewable energy resources have the potential
582	to help diversify fuel types to alleviate the state's growing
583	dependence on natural gas and other fossil fuels for the
584	production of electricity, minimize the volatility of fuel
585	costs, encourage investment within the state, improve
586	environmental conditions, and make the state a leader in new and
587	innovative technologies.
588	Section 8.  Section 366.91, Florida Statutes, is amended to
589	read:
590	366.91  Renewable energy.-
591	(1)  The Legislature finds that it is in the public
592	interest to promote the development of renewable energy
593	resources in this state. Renewable energy resources have the
594	potential to help diversify fuel types to meet Florida's growing
595	dependency on natural gas for electric production, minimize the
596	volatility of fuel costs, encourage investment within the state,
597	improve environmental conditions, and make Florida a leader in
598	new and innovative technologies.
599	(1)(2)  As used in this section, the term:
600	(a)  "Biomass" means a power source that is comprised of,
601	but not limited to, combustible residues or gases from forest
602	products manufacturing, waste, byproducts, or products from
603	agricultural and orchard crops, waste or coproducts from
604	livestock and poultry operations, waste or byproducts from food
605	processing, recycling byproducts, urban wood waste, municipal
606	solid waste, municipal liquid waste treatment operations, and
607	landfill gas.
608	(b)  "Customer-owned renewable generation" means an
609	electric generating system located on a customer's premises that
610	is primarily intended to offset part or all of the customer's
611	electricity requirements with renewable energy.
612	(c)  "Net metering" means a metering and billing
613	methodology whereby customer-owned renewable generation is
614	allowed to offset the customer's electricity consumption on
615	site.
616	(d)  "Renewable energy" means electrical energy produced
617	from a method that uses one or more of the following fuels or
618	energy sources: hydrogen produced from sources other than fossil
619	fuels, biomass, solar energy, geothermal energy, wind energy,
620	ocean energy, and hydroelectric power. The term includes the
621	alternative energy resource, waste heat, from sulfuric acid
622	manufacturing operations and electrical energy produced using
623	pipeline-quality synthetic gas produced from waste petroleum
624	coke with carbon capture and sequestration.
625	(2)(a)(3)  On or before July 1, 2010 January 1, 2006, each
626	public utility must continuously offer to a purchase and must
627	purchase contract to producers of renewable energy at the full
628	avoided cost calculated as provided in paragraph (5)(b), upon
629	request of a renewable energy producer that meets the operating
630	requirements of paragraph (4)(a) or paragraph (4)(b). The
631	commission may shall establish by rule requirements relating to
632	the purchase of renewable energy capacity and energy by public
633	utilities from renewable energy producers and may adopt rules to
634	administer this section. The contract shall contain payment
635	provisions for energy and capacity which are based upon the
636	utility's full avoided costs, as defined in s. 366.051; however,
637	capacity payments are not required if, due to the operational
638	characteristics of the renewable energy generator or the
639	anticipated peak and off-peak availability and capacity factor
640	of the utility's avoided unit, the producer is unlikely to
641	provide any capacity value to the utility or the electric grid
642	during the contract term. Each contract must provide a contract
643	term of at least 10 years. Prudent and reasonable costs
644	associated with the purchase of a renewable energy contract
645	shall be recoverable recovered from the ratepayers of the
646	purchasing contracting utility, without differentiation among
647	customer classes, through the appropriate cost-recovery clause
648	mechanism administered by the commission.
649	(b)  Effective July 1, 2010, a renewable energy producer
650	that meets the operating requirements in paragraph (4)(a) or
651	paragraph (4)(b) is entitled to sell electrical energy to a
652	public utility at full avoided cost calculated as provided in
653	paragraph (5)(b).
654	(3)(4)  On or before January 1, 2006, each municipal
655	electric utility and rural electric cooperative whose annual
656	sales, as of July 1, 1993, to retail customers were greater than
657	2,000 gigawatt hours must continuously offer a purchase contract
658	to producers of renewable energy containing payment provisions
659	for energy and capacity which are based upon the utility's or
660	cooperative's full avoided costs, as determined by the governing
661	body of the municipal utility or cooperative; however, capacity
662	payments are not required if, due to the operational
663	characteristics of the renewable energy generator or the
664	anticipated peak and off-peak availability and capacity factor
665	of the utility's avoided unit, the producer is unlikely to
666	provide any capacity value to the utility or the electric grid
667	during the contract term. Each contract must provide a contract
668	term of at least 10 years.
669	(4)(a)  A renewable energy producer that generates and
670	delivers to the grid a fixed amount of electrical capacity at a
671	rate of production, such that the amount of energy produced per
672	1 megawatt of fixed capacity is 7,000 megawatt hours or more per
673	year, is entitled to sell to any public utility at full avoided
674	cost such fixed amount of capacity and energy.
675	(b)  A renewable energy producer that generates electrical
676	energy using waste heat from sulfuric acid manufacturing
677	operations, such that the amount of electrical energy produced
678	at the site per 1 megawatt of system generating capacity is
679	5,500 megawatt hours or more per year and that exports less than
680	50 percent of the total electrical energy produced to the grid,
681	is entitled to sell to any public utility at full avoided cost
682	any excess energy up to an amount equal to the energy used to
683	serve its own requirements.
684	(5)(a)  The Legislature finds that, based on analysis of
685	past, current, and future projections of retail electric rates,
686	a high degree of correlation exists between the retail electric
687	rates of public utilities in the state and avoided cost. The
688	Legislature further finds that 80 percent of the weighted
689	average of firm service retail electric rates of each public
690	utility, including all adjustment, recovery, and similar add-on
691	charges, directly correlates with each utility's full avoided
692	cost for acquiring energy from renewable energy producers that
693	meet the operating requirements of paragraph (4)(a) or paragraph
694	(4)(b) and that this 80-percent calculation is an
695	administratively efficient, transparent, prudent, and preferred
696	methodology for calculating full avoided cost.
697	(b)  The full avoided cost to which such renewable energy
698	producers are entitled shall be calculated by multiplying 0.80
699	by the weighted average of firm service retail electric rates in
700	cents per kilowatt hour, including all adjustment, recovery, and
701	similar add-on charges, of the purchasing utility.
702	(6)(5)  On or before January 1, 2009, each public utility
703	shall develop a standardized interconnection agreement and net
704	metering program for customer-owned renewable generation. The
705	commission shall establish requirements relating to the
706	expedited interconnection and net metering of customer-owned
707	renewable generation by public utilities and may adopt rules to
708	administer this section.
709	(7)(6)  On or before July 1, 2009, each municipal electric
710	utility and each rural electric cooperative that sells
711	electricity at retail shall develop a standardized
712	interconnection agreement and net metering program for customer-
713	owned renewable generation. Each governing authority shall
714	establish requirements relating to the expedited interconnection
715	and net metering of customer-owned generation. By April 1 of
716	each year, each municipal electric utility and rural electric
717	cooperative utility serving retail customers shall file a report
718	with the commission detailing customer participation in the
719	interconnection and net metering program, including, but not
720	limited to, the number and total capacity of interconnected
721	generating systems and the total energy net metered in the
722	previous year.
723	(8)(7)  Under the provisions of subsections (6) and (7) (5)
724	and (6), when a utility purchases power generated from biogas
725	produced by the anaerobic digestion of agricultural waste,
726	including food waste or other agricultural byproducts, net
727	metering shall be available at a single metering point or as a
728	part of conjunctive billing of multiple points for a customer at
729	a single location, so long as the provision of such service and
730	its associated charges, terms, and other conditions are not
731	reasonably projected to result in higher cost electric service
732	to the utility's general body of ratepayers or adversely affect
733	the adequacy or reliability of electric service to all
734	customers, as determined by the commission for public utilities,
735	or as determined by the governing authority of the municipal
736	electric utility or rural electric cooperative that serves at
737	retail.
738	(9)(8)  A contracting producer of renewable energy producer
739	must pay the actual costs of its interconnection with the
740	transmission grid or distribution system.
741	(10)  An action taken by the commission under this section
742	is not an action relating to rates or services of utilities
743	providing electrical service.
744	Section 9.  Section 366.92, Florida Statutes, is amended to
745	read:
746	366.92  Florida renewable energy policy.-
747	(1)  It is the intent of the Legislature to promote the
748	development of renewable energy; protect the economic viability
749	of Florida's existing renewable energy facilities; diversify the
750	types of fuel used to generate electricity in Florida; lessen
751	Florida's dependence on natural gas and fuel oil for the
752	production of electricity; minimize the volatility of fuel
753	costs; encourage investment within the state; improve
754	environmental conditions; and, at the same time, minimize the
755	costs of power supply to electric utilities and their customers.
756	(1)(2)  As used in this section, the term:
757	(a)  "Florida renewable energy resources" means renewable
758	energy, as defined in s. 377.803, that is produced in Florida.
759	(a)(b)  "Provider" means a "utility" as defined in s.
760	366.8255(1)(a).
761	(b)(c)  "Renewable energy" means renewable energy as
762	defined in s. 366.91(2)(d) that is produced in the state.
763	(d)  "Renewable energy credit" or "REC" means a product
764	that represents the unbundled, separable, renewable attribute of
765	renewable energy produced in Florida and is equivalent to 1
766	megawatt-hour of electricity generated by a source of renewable
767	energy located in Florida.
768	(e)  "Renewable portfolio standard" or "RPS" means the
769	minimum percentage of total annual retail electricity sales by a
770	provider to consumers in Florida that shall be supplied by
771	renewable energy produced in Florida.
772	(3)  The commission shall adopt rules for a renewable
773	portfolio standard requiring each provider to supply renewable
774	energy to its customers directly, by procuring, or through
775	renewable energy credits. In developing the RPS rule, the
776	commission shall consult the Department of Environmental
777	Protection and the Florida Energy and Climate Commission. The
778	rule shall not be implemented until ratified by the Legislature.
779	The commission shall present a draft rule for legislative
780	consideration by February 1, 2009.
781	(a)  In developing the rule, the commission shall evaluate
782	the current and forecasted levelized cost in cents per kilowatt
783	hour through 2020 and current and forecasted installed capacity
784	in kilowatts for each renewable energy generation method through
785	2020.
786	(b)  The commission's rule:
787	1.  Shall include methods of managing the cost of
788	compliance with the renewable portfolio standard, whether
789	through direct supply or procurement of renewable power or
790	through the purchase of renewable energy credits. The commission
791	shall have rulemaking authority for providing annual cost
792	recovery and incentive-based adjustments to authorized rates of
793	return on common equity to providers to incentivize renewable
794	energy. Notwithstanding s. 366.91(3) and (4), upon the
795	ratification of the rules developed pursuant to this subsection,
796	the commission may approve projects and power sales agreements
797	with renewable power producers and the sale of renewable energy
798	credits needed to comply with the renewable portfolio standard.
799	In the event of any conflict, this subparagraph shall supersede
800	s. 366.91(3) and (4). However, nothing in this section shall
801	alter the obligation of each public utility to continuously
802	offer a purchase contract to producers of renewable energy.
803	2.  Shall provide for appropriate compliance measures and
804	the conditions under which noncompliance shall be excused due to
805	a determination by the commission that the supply of renewable
806	energy or renewable energy credits was not adequate to satisfy
807	the demand for such energy or that the cost of securing
808	renewable energy or renewable energy credits was cost
809	prohibitive.
810	3.  May provide added weight to energy provided by wind and
811	solar photovoltaic over other forms of renewable energy, whether
812	directly supplied or procured or indirectly obtained through the
813	purchase of renewable energy credits.
814	4.  Shall determine an appropriate period of time for which
815	renewable energy credits may be used for purposes of compliance
816	with the renewable portfolio standard.
817	5.  Shall provide for monitoring of compliance with and
818	enforcement of the requirements of this section.
819	6.  Shall ensure that energy credited toward compliance
820	with the requirements of this section is not credited toward any
821	other purpose.
822	7.  Shall include procedures to track and account for
823	renewable energy credits, including ownership of renewable
824	energy credits that are derived from a customer-owned renewable
825	energy facility as a result of any action by a customer of an
826	electric power supplier that is independent of a program
827	sponsored by the electric power supplier.
828	8.  Shall provide for the conditions and options for the
829	repeal or alteration of the rule in the event that new
830	provisions of federal law supplant or conflict with the rule.
831	(c)  Beginning on April 1 of the year following final
832	adoption of the commission's renewable portfolio standard rule,
833	each provider shall submit a report to the commission describing
834	the steps that have been taken in the previous year and the
835	steps that will be taken in the future to add renewable energy
836	to the provider's energy supply portfolio. The report shall
837	state whether the provider was in compliance with the renewable
838	portfolio standard during the previous year and how it will
839	comply with the renewable portfolio standard in the upcoming
840	year.
841	(2)(4)  Subject to the provisions of this subsection In
842	order to demonstrate the feasibility and viability of clean
843	energy systems, the commission shall provide for full cost
844	recovery under the environmental cost-recovery clause of all
845	reasonable and prudent costs incurred by a provider to produce
846	or purchase for renewable energy for purposes of supplying
847	electrical energy to its retail customers projects that are zero
848	greenhouse gas emitting at the point of generation, up to a
849	total of 110 megawatts statewide, and for which the provider has
850	secured necessary land, zoning permits, and transmission rights
851	within the state. Such costs shall be deemed reasonable and
852	prudent for purposes of cost recovery so long as the provider
853	has used reasonable and customary industry practices in the
854	design, procurement, and construction of the project in a cost-
855	effective manner appropriate to the location of the facility.
856	The provider shall report to the commission as part of the cost-
857	recovery proceedings the construction costs, in-service costs,
858	operating and maintenance costs, hourly energy production of the
859	renewable energy project, and any other information deemed
860	relevant by the commission. Any provider constructing a clean
861	energy facility pursuant to this section shall file for cost
862	recovery no later than July 1, 2009.
863	(a)  A provider may petition the commission through
864	December 31, 2013, for recovery of costs to produce or purchase
865	up to a total of 735 megawatts of renewable energy statewide,
866	subject to the cost cap in paragraph (d). If a provider does not
867	seek approval to produce or purchase the total amount of
868	renewable energy capacity designated for a specific period under
869	this paragraph, the remaining capacity designated for that
870	period shall be carried forward to the succeeding period but not
871	beyond December 31, 2013. A provider may petition the
872	commission:
873	1.  Beginning July 1, 2010, through December 31, 2011, for
874	recovery of costs to produce or purchase up to a total of 300
875	megawatts of renewable energy statewide and an additional 15
876	megawatts of rooftop or pole-mounted solar energy applications.
877	2.  Beginning January 1, 2012, through December 31, 2012,
878	for recovery of costs to produce or purchase up to an additional
879	200 megawatts of renewable energy statewide and an additional 10
880	megawatts of rooftop or pole-mounted solar energy applications.
881	3.  Beginning January 1, 2013, through December 31, 2013,
882	for recovery of costs to produce or purchase up to an additional
883	200 megawatts of renewable energy statewide and an additional 10
884	megawatts of rooftop or pole-mounted solar energy applications.
885	(b)  In addition to the full cost recovery for such
886	renewable energy projects, a return on equity of at least 50
887	basis points above the top of the range of the provider's last
888	authorized rate of return on equity approved by the commission
889	for energy projects shall be approved and provided for such
890	renewable energy projects if a majority value of the energy-
891	producing components incorporated into such projects are
892	manufactured or assembled in the state.
893	(c)  A provider has sole discretion to determine the type
894	and technology of the renewable energy resource that it intends
895	to use. A provider also has sole discretion to determine whether
896	to construct new renewable energy generating facilities, convert
897	existing fossil fuel generating facilities to renewable energy
898	generating facilities, or contract for the purchase of renewable
899	energy from third-party generating facilities in the state.
900	(d)  For the production or purchase of renewable energy
901	under this subsection, a provider may recover costs up to and in
902	excess of its full avoided cost, as defined in s. 366.051 and
903	approved by the commission, if the recovery of costs in excess
904	of the provider's full avoided cost does not at any time exceed
905	2 percent of the provider's total revenues from the retail sale
906	of electricity for calendar year 2009. For purposes of cost
907	recovery under this subsection, costs shall be computed using a
908	methodology that, for a renewable energy generating facility,
909	averages the revenue requirements of the facility over its
910	economic life and, for a renewable energy purchase, averages the
911	revenue requirements of the purchase over the life of the
912	contract.
913	(e)  Cost recovery under this subsection is limited to new
914	construction or conversion projects for which construction is
915	commenced on or after July 1, 2010, and to purchases made on or
916	after that date. All renewable energy projects for which costs
917	are approved by the commission for recovery through the
918	environmental cost recovery clause before July 1, 2010, are not
919	subject to or included in the calculation of the cost cap.
920	(f)  The costs incurred by a provider to produce or
921	purchase renewable energy under this subsection are deemed to be
922	prudent for purposes of cost recovery if the provider uses
923	reasonable and customary industry practices in the design,
924	procurement, and construction of the project in a cost-effective
925	manner for the type of renewable energy resource and appropriate
926	to the location of the facility.
927	(g)  Subject to the cost cap in paragraph (d), the
928	commission shall allow a provider to recover the costs
929	associated with the production or purchase of renewable energy
930	under this subsection as follows:
931	1.  For new renewable energy generating facilities, the
932	commission shall allow recovery of reasonable and prudent costs,
933	including, but not limited to, the siting, licensing,
934	engineering, design, permitting, construction, operation, and
935	maintenance of such facilities, including any applicable taxes
936	and a return based on the provider's last authorized rate of
937	return.
938	2.  For conversion of existing fossil fuel generating
939	facilities to renewable energy generating facilities, the
940	commission shall allow recovery of reasonable and prudent
941	conversion costs, including the costs of retirement of the
942	fossil fuel plant that exceed any amounts accrued by the
943	provider for such purposes through rates previously set by the
944	commission.
945	3.  For purchase of renewable energy from third-party
946	generating facilities in the state, the commission shall allow
947	recovery of reasonable and prudent costs associated with the
948	purchase.
949	(h)  In a proceeding to recover costs incurred under this
950	subsection, a provider must provide the commission all cost
951	information, hourly energy production information, and other
952	information deemed relevant by the commission with respect to
953	each project.
954	(i)  When a provider purchases renewable energy under this
955	subsection at a cost in excess of its full avoided cost, the
956	seller must surrender to the provider all renewable attributes
957	of the renewable energy purchased.
958	(j)  Revenues derived from any renewable energy credit,
959	carbon credit, or other mechanism that attributes value to the
960	production of renewable energy, either existing or hereafter
961	devised, received by a provider by virtue of the production or
962	purchase of renewable energy for which cost recovery is approved
963	under this subsection shall be shared with the provider's
964	ratepayers such that the ratepayers are credited at least 75
965	percent of such revenues.
966	(k)  Section 403.519 does not apply to a renewable energy
967	generating facility constructed or converted from an existing
968	fossil fuel generating facility under this subsection, and the
969	commission is not required to submit a report for such a project
970	under s. 403.507(4)(a).
971	(3)  Each provider shall, in its 10-year site plan
972	submitted to the commission pursuant to s. 186.801, provide the
973	following information:
974	(a)  The amount of renewable energy resources the provider
975	produces or purchases.
976	(b)  The amount of renewable energy resources the provider
977	plans to produce or purchase over the 10-year planning horizon
978	and the means by which such production or purchases will be
979	achieved.
980	(c)  A statement indicating how the production and purchase
981	of renewable energy resources impact the provider's present and
982	future capacity and energy needs.
983	(4)(a)  A developer of solar energy generation may locate a
984	solar energy generation facility that has a gross power rating
985	of 2 megawatts or less on the premises of a host consumer and
986	supply electricity exclusively for sale to the host consumer for
987	consumption only on the premises or contiguous property owned or
988	leased by the host consumer, regardless of interruptions in
989	contiguity caused by easements, public thoroughfares,
990	transportation rights-of-way, or utility rights-of-way, if such
991	premises or contiguous property does not include a multifamily
992	residential building.
993	(b)  The commission shall adopt rules to implement this
994	subsection. In adopting such rules, the commission shall
995	establish, at a minimum:
996	1.  Requirements related to interconnection and metering.
997	2.  A mechanism for setting rates for any service provided
998	to the consumer by the utility if such service is required by
999	the consumer, which rates shall ensure that the utility's
1000	general body of ratepayers does not subsidize any redundant
1001	utility generating capacity necessary to serve the consumer.
1002	3.  Requirements for notice to the commission of the size
1003	and location of each renewable energy generation facility
1004	planned under this subsection, the identity and historical and
1005	projected load characteristics of each host consumer, and any
1006	other information deemed necessary by the commission to satisfy
1007	its obligations under s. 364.04(5).
1008	(c)  Beginning January 1, 2011, and at least once every 6
1009	months thereafter, the commission shall submit a report to the
1010	Legislature of activity under this subsection, which shall
1011	address the impacts of such activity on the electric power grid
1012	of the state, individual utility systems, and each utility's
1013	general body of ratepayers, and shall include recommendations
1014	concerning implementation of this program.
1015	(5)  Each municipal electric utility and rural electric
1016	cooperative shall develop standards for the promotion,
1017	encouragement, and expansion of the use of renewable energy
1018	resources and energy conservation and efficiency measures. On or
1019	before April 1, 2009, and annually thereafter, each municipal
1020	electric utility and electric cooperative shall submit to the
1021	commission a report that identifies such standards.
1022	(6)  Nothing in This section and any action taken under
1023	this section may not shall be construed to impede or impair the
1024	terms and conditions of, or serve as a basis for renegotiating
1025	or repricing, an existing contract contracts.
1026	(7)  The commission may adopt rules to administer and
1027	implement the provisions of this section.
1028	Section 10.  Subsection (14) of section 403.503, Florida
1029	Statutes, is amended to read:
1030	403.503  Definitions relating to Florida Electrical Power
1031	Plant Siting Act.-As used in this act:
1032	(14)  "Electrical power plant" means, for the purpose of
1033	certification, any steam or solar electrical generating facility
1034	using any process or fuel, including nuclear materials, except
1035	that this term does not include any steam or solar electrical
1036	generating facility of less than 75 megawatts in capacity or any
1037	solar electrical generating facility of any sized capacity
1038	unless the applicant for such a facility elects to apply for
1039	certification under this act. This term also includes the site;
1040	all associated facilities that will be owned by the applicant
1041	that are physically connected to the site; all associated
1042	facilities that are indirectly connected to the site by other
1043	proposed associated facilities that will be owned by the
1044	applicant; and associated transmission lines that will be owned
1045	by the applicant which connect the electrical power plant to an
1046	existing transmission network or rights-of-way to which the
1047	applicant intends to connect. At the applicant's option, this
1048	term may include any offsite associated facilities that will not
1049	be owned by the applicant; offsite associated facilities that
1050	are owned by the applicant but that are not directly connected
1051	to the site; any proposed terminal or intermediate substations
1052	or substation expansions connected to the associated
1053	transmission line; or new transmission lines, upgrades, or
1054	improvements of an existing transmission line on any portion of
1055	the applicant's electrical transmission system necessary to
1056	support the generation injected into the system from the
1057	proposed electrical power plant.
1058	Section 11.  Section 288.9602, Florida Statutes, is amended
1059	to read:
1060	288.9602  Findings and declarations of necessity.-The
1061	Legislature finds and declares that:
1062	(1)  There is a need to enhance economic activity in the
1063	cities and counties of the state by attracting manufacturing,
1064	development, redevelopment of brownfield areas, business
1065	enterprise management, and other activities conducive to
1066	economic promotion in order to provide a stronger, more
1067	balanced, and stable economy in the cities and counties of the
1068	state.
1069	(2)  A significant portion of businesses located in the
1070	cities and counties of the state or desiring to locate in the
1071	cities and counties of the state encounter difficulty in
1072	obtaining financing on terms competitive with those available to
1073	businesses located in other states and nations or are unable to
1074	obtain such financing at all.
1075	(3)  The difficulty in obtaining such financing impairs the
1076	expansion of economic activity and the creation of jobs and
1077	income in communities throughout the state.
1078	(4)  The businesses most often affected by these financing
1079	difficulties are small businesses critical to the economic
1080	development of the state cities and counties of Florida.
1081	(5)  The economic well-being of the people in, and the
1082	commercial and industrial resources of, the cities and counties
1083	of the state would be enhanced by the provision of financing to
1084	businesses on terms competitive with those available in the most
1085	developed financial markets worldwide.
1086	(6)  In order to improve the prosperity and welfare of the
1087	cities and counties of this state and its inhabitants, to
1088	improve and promote the financing of projects related to the
1089	economic development of the cities and counties of this state,
1090	including redevelopment of brownfield areas, and to increase the
1091	purchasing power and opportunities for gainful employment of
1092	citizens of the cities and counties of this state, it is
1093	necessary and in the public interest to facilitate the financing
1094	of such projects as provided for in this act and to do so
1095	without regard to the boundaries between counties,
1096	municipalities, special districts, and other local governmental
1097	bodies or agencies in order to more effectively and efficiently
1098	serve the interests of the greatest number of people in the
1099	widest area practicable.
1100	(7)  In order to promote and stimulate development and
1101	advance the business prosperity and economic welfare of the
1102	cities and counties of this state and its inhabitants; to
1103	encourage and assist new business and industry in this state
1104	through loans, investments, or other business transactions; to
1105	rehabilitate and assist existing businesses; to stimulate and
1106	assist in the expansion of all kinds of for-profit and not-for-
1107	profit business activity; and to create maximum opportunities
1108	for employment, encouragement of thrift, and improvement of the
1109	standard of living of the citizens of Florida, it is necessary
1110	and in the public interest to facilitate the cooperation and
1111	action between organizations, public and private, in the
1112	promotion, development, and conduct of all kinds of for-profit
1113	and not-for-profit business activity in the state.
1114	(8)  In order to efficiently and effectively achieve the
1115	purposes of this act, it is necessary and in the public interest
1116	to create a special development finance authority to cooperate
1117	and act in conjunction with public agencies of this state and
1118	local governments of this state, through interlocal agreements
1119	pursuant to the Florida Interlocal Cooperation Act of 1969, in
1120	the promotion and advancement of projects related to economic
1121	development, including redevelopment of brownfield areas,
1122	throughout the state.
1123	(9)  The purposes to be achieved by the special development
1124	finance authority through such projects and such financings of
1125	business and industry in compliance with the criteria and the
1126	requirements of this act are predominantly the public purposes
1127	stated in this section, and such purposes implement the
1128	governmental purposes under the State Constitution of providing
1129	for the health, safety, and welfare of the people of the state,
1130	including implementing the purpose of s. 10(c), Art. VII of the
1131	State Constitution and simultaneously provide new and innovative
1132	means for the investment of public trust funds in accordance
1133	with s. 10(a), Art. VII of the State Constitution.
1134	Section 12.  Subsections (6), (11), and (12) of section
1135	288.9603, Florida Statutes, are amended to read:
1136	288.9603  Definitions.-
1137	(6)  "Debt service" shall mean for any bonds issued by the
1138	corporation or for any bonds or other form of indebtedness and
1139	for which a guaranty has been issued pursuant to ss. 288.9606,
1140	288.9607, and 288.9608, for any period for which such
1141	determination is to be made, the aggregate amount of all
1142	interest charges due or which shall become due on or with
1143	respect to such bonds or indebtedness during the period for
1144	which such determination is being made, plus the aggregate
1145	amount of scheduled principal payments due or which shall become
1146	due on or with respect to such bonds or indebtedness during the
1147	period for which such determination is being made. Scheduled
1148	principal payments may include only principal payments that are
1149	scheduled as part of the terms of the original bond or
1150	indebtedness issue and that result in the reduction of the
1151	outstanding principal balance of the bonds or indebtedness.
1152	(11)  "Guaranty agreement" means an agreement by and
1153	between the corporation and an applicant a public agency
1154	pursuant to the provisions of s. 288.9607.
1155	(12)  "Guaranty agreement fund" means the Energy,
1156	Technology, and Economic Development Revenue Bond Guaranty Fund
1157	Reserve Account established by the corporation pursuant to s.
1158	288.9608.
1159	Section 13.  Section 288.9604, Florida Statutes, is amended
1160	to read:
1161	288.9604  Creation of the authority.-
1162	(1)  Upon a finding of necessity by a city or county of
1163	this state, selected pursuant to subsection (2), There is
1164	created a public body corporate and politic known as the
1165	"Florida Development Finance Corporation." The corporation shall
1166	be constituted as a public instrumentality of local government,
1167	and the exercise by the corporation of the powers conferred by
1168	this act shall be deemed and held to be the performance of an
1169	essential public function. The corporation has the power to
1170	function within the corporate limits of any public agency with
1171	which it has entered into an interlocal agreement for any of the
1172	purposes of this act.
1173	(2)  A city or county of Florida shall be selected by a
1174	search committee of Enterprise Florida, Inc. This city or county
1175	shall be authorized to activate the corporation. The search
1176	committee shall be composed of two commercial banking
1177	representatives, the Senate member of the partnership, the House
1178	of Representatives member of the partnership, and a member who
1179	is an industry or economic development professional.
1180	(2)(3)  Upon activation of the corporation, The Governor,
1181	subject to confirmation by the Senate, shall appoint the board
1182	of directors of the corporation, who shall be five in number.
1183	The terms of office for the directors shall be for 4 years from
1184	the date of their appointment. A vacancy occurring during a term
1185	shall be filled for the unexpired term. A director shall be
1186	eligible for reappointment. At least three of the directors of
1187	the corporation shall be bankers who have been selected by the
1188	Governor from a list of bankers who were nominated by Enterprise
1189	Florida, Inc., and one of the directors shall be an economic
1190	development specialist. The chairperson of the Florida Black
1191	Business Investment Board shall be an ex officio member of the
1192	board of the corporation.
1193	(3)(4)(a)  A director shall receive no compensation for his
1194	or her services, but is entitled to the necessary expenses,
1195	including travel expenses, incurred in the discharge of his or
1196	her duties. Each director shall hold office until his or her
1197	successor has been appointed.
1198	(b)  The powers of the corporation shall be exercised by
1199	the directors thereof. A majority of the directors constitutes a
1200	quorum for the purposes of conducting business and exercising
1201	the powers of the corporation and for all other purposes. Action
1202	may be taken by the corporation upon a vote of a majority of the
1203	directors present, unless in any case the bylaws require a
1204	larger number. Any person may be appointed as director if he or
1205	she resides, or is engaged in business, which means owning a
1206	business, practicing a profession, or performing a service for
1207	compensation or serving as an officer or director of a
1208	corporation or other business entity so engaged, within the
1209	state.
1210	(c)  The directors of the corporation shall annually elect
1211	one of their members as chair and one as vice chair. The
1212	corporation may employ a president, technical experts, and such
1213	other agents and employees, permanent and temporary, as it
1214	requires and determine their qualifications, duties, and
1215	compensation. For such legal services as it requires, the
1216	corporation may employ or retain its own counsel and legal
1217	staff. The corporation shall file with the governing body of
1218	each public agency with which it has entered into an interlocal
1219	agreement and with the Governor, the Speaker of the House of
1220	Representatives, the President of the Senate, the Minority
1221	Leaders of the Senate and House of Representatives, and the
1222	Auditor General, on or before 90 days after the close of the
1223	fiscal year of the corporation, a report of its activities for
1224	the preceding fiscal year, which report shall include a complete
1225	financial statement setting forth its assets, liabilities,
1226	income, and operating expenses as of the end of such fiscal
1227	year.
1228	(4)(5)  The board may remove a director for inefficiency,
1229	neglect of duty, or misconduct in office only after a hearing
1230	and only if he or she has been given a copy of the charges at
1231	least 10 days before prior to such hearing and has had an
1232	opportunity to be heard in person or by counsel. The removal of
1233	a director shall create a vacancy on the board which shall be
1234	filled pursuant to subsection (4) (3).
1235	Section 14.  Section 288.9605, Florida Statutes, is amended
1236	to read:
1237	288.9605  Corporation powers.-
1238	(1)  The powers of the corporation created by s. 288.9604
1239	shall include all the powers necessary or convenient to carry
1240	out and effectuate the purposes and provisions of this act.
1241	(2)  The corporation is authorized and empowered to:
1242	(a)  Have perpetual succession as a body politic and
1243	corporate and adopt bylaws for the regulation of its affairs and
1244	the conduct of its business.
1245	(b)  Adopt an official seal and alter the same at its
1246	pleasure.
1247	(c)  Maintain an office at such place or places as it may
1248	designate.
1249	(d)  Sue and be sued in its own name and plead and be
1250	impleaded.
1251	(e)  Enter into interlocal agreements pursuant to s.
1252	163.01(7) with public agencies of this state for the exercise of
1253	any power, privilege, or authority consistent with the purposes
1254	of this act.
1255	(f)  Issue, from time to time, revenue bonds, notes, or
1256	other evidence of indebtedness, including, but not limited to,
1257	taxable bonds and bonds the interest on which is exempt from
1258	federal income taxation, for the purpose of financing and
1259	refinancing any capital projects that promote economic
1260	development within the state, thereby benefitting the citizens
1261	of the state, for applicants and exercise all powers in
1262	connection with the authorization, issuance, and sale of bonds,
1263	subject to the provisions of s. 288.9606.
1264	(g)  Issue bond anticipation notes in connection with the
1265	authorization, issuance, and sale of such bonds, pursuant to the
1266	provisions of s. 288.9606.
1267	(h)  Make and execute contracts and other instruments
1268	necessary or convenient to the exercise of its powers under the
1269	act.
1270	(i)  Disseminate information about itself and its
1271	activities.
1272	(j)  Acquire, by purchase, lease, option, gift, grant,
1273	bequest, devise, or otherwise, real property, together with any
1274	improvements thereon, or personal property for its
1275	administrative purposes or in furtherance of the purposes of
1276	this act, together with any improvements thereon.
1277	(k)  Hold, improve, clear, or prepare for development any
1278	such property.
1279	(l)  Mortgage, pledge, hypothecate, or otherwise encumber
1280	or dispose of any real or personal property.
1281	(m)  Insure or provide for insurance of any real or
1282	personal property or operations of the corporation or any
1283	private enterprise against any risks or hazards, including the
1284	power to pay premiums on any such insurance.
1285	(n)  Establish and fund a guaranty fund in furtherance of
1286	the purposes of this act.
1287	(o)  Invest funds held in reserve or sinking funds or any
1288	such funds not required for immediate disbursement in property
1289	or securities in such manner as the board shall determine,
1290	subject to the authorizing resolution on any bonds issued, and
1291	to terms established in the investment agreement pursuant to ss.
1292	288.9606, 288.9607, and 288.9608, and redeem such bonds as have
1293	been issued pursuant to s. 288.9606 at the redemption price
1294	established therein or purchase such bonds at less than
1295	redemption price, all such bonds so redeemed or purchased to be
1296	canceled.
1297	(p)  Borrow money and apply for and accept advances, loans,
1298	grants, contributions, and any other form of financial
1299	assistance from the Federal Government or the state, county, or
1300	other public agency body or from any sources, public or private,
1301	for the purposes of this act and give such security as may be
1302	required and enter into and carry out contracts or agreements in
1303	connection therewith; and include in any contract for financial
1304	assistance with the Federal Government or the state, county, or
1305	other public agency for, or with respect to, any purposes under
1306	this act and related activities such conditions imposed pursuant
1307	to federal laws as the county or municipality or other public
1308	agency deems reasonable and appropriate which are not
1309	inconsistent with the provisions of this act.
1310	(q)  Make or have all surveys and plans necessary for the
1311	carrying out of the purposes of this act, contract with any
1312	person, public or private, in making and carrying out such
1313	plans, and adopt, approve, modify, and amend such plans.
1314	(r)  Develop, test, and report methods and techniques and
1315	carry out demonstrations and other activities for the promotion
1316	of any of the purposes of this act.
1317	(s)  Apply for, accept, and utilize grants from the Federal
1318	Government or the state, county, or other public agency
1319	available for any of the purposes of this act.
1320	(t)  Make expenditures necessary to carry out the purposes
1321	of this act.
1322	(u)  Exercise all or any part or combination of powers
1323	granted in this act.
1324	(v)  Enter into investment agreements with the Florida
1325	Black Business Investment Board concerning the issuance of bonds
1326	and other forms of indebtedness and capital for the purposes of
1327	ss. 288.707-288.714.
1328	(w)  Determine the situations and circumstances for
1329	participation in partnerships by agreement with local
1330	governments, financial institutions, and others associated with
1331	the redevelopment of brownfield areas pursuant to the
1332	Brownfields Redevelopment Act for a limited state guaranty of
1333	revenue bonds, loan guarantees, or loan loss reserves.
1334	Section 15.  Subsections (3) and (5) of section 288.9606,
1335	Florida Statutes, are amended, and subsection (7) is added to
1336	that section, to read:
1337	288.9606  Issue of revenue bonds.-
1338	(3)  Bonds issued under this section shall be authorized by
1339	a public agency of this state pursuant to the terms of an
1340	interlocal agreement, unless such bonds are issued pursuant to
1341	subsection (7); may be issued in one or more series; and shall
1342	bear such date or dates, be payable upon demand or mature at
1343	such time or times, bear interest rate or rates, be in such
1344	denomination or denominations, be in such form either with or
1345	without coupon or registered, carry such conversion or
1346	registration privileges, have such rank or priority, be executed
1347	in such manner, be payable in such medium of payments at such
1348	place or places, be subject to such terms of redemption, with or
1349	without premium, be secured in such manner, and have such other
1350	characteristics as may be provided by the corporation interlocal
1351	agreement issued pursuant thereto. Bonds issued under this
1352	section may be sold in such manner, either at public or private
1353	sale, and for such price as the corporation may determine will
1354	effectuate the purpose of this act.
1355	(5)  In any suit, action, or proceeding involving the
1356	validity or enforceability of any bond issued under this act, or
1357	the security therefor, any such bond reciting in substance that
1358	it has been issued by the corporation in connection with any
1359	purpose of the act shall be conclusively deemed to have been
1360	issued for such purpose, and such purpose shall be conclusively
1361	deemed to have been carried out in accordance with the act. The
1362	complaint in any action to validate such bonds shall be filed
1363	only in the Circuit Court for Leon County. The notice required
1364	to be published by s. 75.06 shall be published only in Leon
1365	County, and the complaint and order of the circuit court shall
1366	be served only on the State Attorney of the Second Judicial
1367	Circuit and on the state attorney of each circuit in each county
1368	where the public agencies which were initially a party to the
1369	interlocal agreement are located. Notice of such proceedings
1370	shall be published in the manner and the time required by s.
1371	75.06, in Leon County and in each county where the public
1372	agencies which were initially a party to the interlocal
1373	agreement are located. Obligations of the corporation pursuant
1374	to a loan agreement as described in this subsection may be
1375	validated as provided in chapter 75. The validation of at least
1376	the first bonds approved by the corporation shall be appealed to
1377	the Florida Supreme Court. The complaint in the validation
1378	proceeding shall specifically address the constitutionality of
1379	using the investment of the earnings accrued and collected upon
1380	the investment of the minimum balance funds required to be
1381	maintained in the State Transportation Trust Fund to guarantee
1382	such bonds. If such proceeding results in an adverse ruling and
1383	such bonds and guaranty are found to be unconstitutional,
1384	invalid, or unenforceable, then the corporation shall no longer
1385	be authorized to use the investment of the earnings accrued and
1386	collected upon the investment of the minimum balance of the
1387	State Transportation Trust Fund to guarantee any bonds.
1388	(7)  Notwithstanding any provision of this section, the
1389	corporation in its corporate capacity may, without authorization
1390	from a public agency under s. 163.01(7), issue revenue bonds or
1391	other evidence of indebtedness under this section to:
1392	(a)  Finance the undertaking of any project within the
1393	state that promotes renewable energy as defined in s. 377.803 or
1394	s. 366.91;
1395	(b)  Finance the undertaking of any project within the
1396	state that is a project contemplated or allowed under s. 406 of
1397	the American Recovery and Reinvestment Act of 2009; or
1398	(c)  If permitted by federal law, finance qualifying
1399	improvement projects within the state under s. 163.08.
1400	Section 16.  Section 288.9607, Florida Statutes, is amended
1401	to read:
1402	288.9607  Guaranty of bond issues.-
1403	(1)  The corporation may is hereby authorized to approve or
1404	deny, by a majority vote of the membership of the directors, a
1405	guaranty of debt service payments for bonds or other
1406	indebtedness used to finance any capital project that promotes
1407	economic development in the state, including, but not limited
1408	to, those capital projects for which revenue bonds are the
1409	guaranty of any revenue bonds issued under pursuant to this act,
1410	if any such guaranty does not exceed 5 percent of the total
1411	aggregate principal amount of bonds or other indebtedness
1412	relating to any one capital project. The guaranty may also be of
1413	the obligations of the corporation with respect to any letter of
1414	credit, bond insurance, or other form of credit enhancement
1415	provided by any person with respect to any revenue bonds issued
1416	by the corporation pursuant to this act.
1417	(2)  Any applicant for financing from the corporation,
1418	requesting a guaranty of the bonds issued by the corporation
1419	under this act must submit a guaranty application, in a form
1420	acceptable to the corporation, together with supporting
1421	documentation to the corporation as provided in this section.
1422	(3)  All applicants which have entered into a guaranty
1423	agreement with the corporation shall pay a guaranty premium on
1424	such terms and at such rates as the corporation shall determine
1425	before prior to the issuance of the guaranty bonds. The
1426	corporation may adopt such guaranty premium structures as it
1427	deems appropriate, including, without limitation, guaranty
1428	premiums which are payable one time upon the issuance of the
1429	guaranty bonds or annual premiums payable upon the outstanding
1430	principal balance of bonds or other indebtedness that is
1431	guaranteed from time to time. The premium payment may be
1432	collected by the corporation from any the lessee of the project
1433	involved, from the applicant, or from any other payee of any the
1434	loan agreement involved.
1435	(4)  All applications for a guaranty must acknowledge that
1436	as a condition to the issuance of the guaranty, the corporation
1437	may require that the financing must be secured by a mortgage or
1438	security interest on the property acquired which will have such
1439	priority over other liens on such property as may be required by
1440	the corporation, and that the financing must be guaranteed by
1441	such person or persons with such ownership interest in the
1442	applicant as may be required by the corporation.
1443	(5)  Personal financial records, trade secrets, or
1444	proprietary information of applicants delivered to or obtained
1445	by the corporation shall be confidential and exempt from the
1446	provisions of s. 119.07(1).
1447	(6)  If the application for a guaranty is approved by the
1448	corporation, the corporation and the applicant shall enter into
1449	a guaranty agreement. In accordance with the provisions of the
1450	guaranty agreement, the corporation guarantees to use the funds
1451	on deposit in its Energy, Technology, and Economic Development
1452	Guaranty Fund Revenue Bond Guaranty Reserve Account to meet debt
1453	service amortization payments on the bonds or indebtedness as
1454	they become due, in the event and to the extent that the
1455	applicant is unable to meet such payments in accordance with the
1456	terms of the bond indenture when called to do so by the trustee
1457	of the bondholders, or to make similar payments to reimburse any
1458	person which has provided credit enhancement for the bonds and
1459	which has advanced funds to meet such debt service amortization
1460	payments as they become due, if such guaranty of the corporation
1461	is limited to 5 percent of the total aggregate principal amount
1462	of bonds or other indebtedness relating to any one capital
1463	project. If the applicant defaults on debt service bond
1464	amortization payments, the corporation may use funds on deposit
1465	in the Energy, Technology, and Economic Development Guaranty
1466	Fund Revenue Bond Guaranty Reserve Account to pay insurance,
1467	maintenance, and other costs which may be required for the
1468	preservation of any capital project or other collateral security
1469	for any bond or indebtedness issued to finance a capital project
1470	for which debt service payments are guaranteed by the
1471	corporation issued by the corporation, or to otherwise protect
1472	the reserve account from loss, or to minimize losses to the
1473	reserve account, in each case in such manner as may be deemed
1474	necessary and advisable by the corporation.
1475	(7)(a)  The corporation is authorized to enter into an
1476	investment agreement with the Department of Transportation and
1477	the State Board of Administration concerning the investment of
1478	the earnings accrued and collected upon the investment of the
1479	minimum balance of funds required to be maintained in the State
1480	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1481	investment shall be limited as follows:
1482	1.  Not more than $4 million of the investment earnings
1483	earned on the investment of the minimum balance of the State
1484	Transportation Trust Fund in a fiscal year shall be at risk at
1485	any time on one or more bonds or series of bonds issued by the
1486	corporation.
1487	2.  The investment earnings shall not be used to guarantee
1488	any bonds issued after June 30, 1998, and in no event shall the
1489	investment earnings be used to guarantee any bond issued for a
1490	maturity longer than 15 years.
1491	3.  The corporation shall pay a reasonable fee, set by the
1492	State Board of Administration, in return for the investment of
1493	such funds. The fee shall not be less than the comparable rate
1494	for similar investments in terms of size and risk.
1495	4.  The proceeds of bonds, or portions thereof, issued by
1496	the corporation for which a guaranty has been or will be issued
1497	pursuant to s. 288.9606, s. 288.9608, or this section used to
1498	make loans to any one person, including any related interests,
1499	as defined in s. 658.48, of such person, shall not exceed 20
1500	percent of the principal of all such outstanding bonds of the
1501	corporation issued prior to the first composite bond issue of
1502	the corporation, or December 31, 1995, whichever comes first,
1503	and shall not exceed 15 percent of the principal of all such
1504	outstanding bonds of the corporation issued thereafter, in each
1505	case determined as of the date of issuance of the bonds for
1506	which such determination is being made and taking into account
1507	the principal amount of such bonds to be issued. The provisions
1508	of this subparagraph shall not apply when the total amount of
1509	all such outstanding bonds issued by the corporation is less
1510	than $10 million. For the purpose of calculating the limits
1511	imposed by the provisions of this subparagraph, the first $10
1512	million of bonds issued by the corporation shall be taken into
1513	account.
1514	5.  The corporation shall establish a debt service reserve
1515	account which contains not less than 6 months' debt service
1516	reserves from the proceeds of the sale of any bonds, or portions
1517	thereof, guaranteed by the corporation.
1518	6.  The corporation shall establish an account known as the
1519	Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1520	corporation shall deposit a sum of money or other cash
1521	equivalents into this fund and maintain a balance of money or
1522	cash equivalents in this fund, from sources other than the
1523	investment of earnings accrued and collected upon the investment
1524	of the minimum balance of funds required to be maintained in the
1525	State Transportation Trust Fund, not less than a sum equal to 1
1526	year of maximum debt service on all outstanding bonds, or
1527	portions thereof, of the corporation for which a guaranty has
1528	been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
1529	the event the corporation fails to maintain the balance required
1530	pursuant to this subparagraph for any reason other than a
1531	default on a bond issue of the corporation guaranteed pursuant
1532	to this section or because of the use by the corporation of any
1533	such funds to pay insurance, maintenance, or other costs which
1534	may be required for the preservation of any project or other
1535	collateral security for any bond issued by the corporation, or
1536	to otherwise protect the Revenue Bond Guaranty Reserve Account
1537	from loss while the applicant is in default on amortization
1538	payments, or to minimize losses to the reserve account in each
1539	case in such manner as may be deemed necessary or advisable by
1540	the corporation, the corporation shall immediately notify the
1541	Department of Transportation of such deficiency. Any
1542	supplemental funding authorized by an investment agreement
1543	entered into with the Department of Transportation and the State
1544	Board of Administration concerning the use of investment
1545	earnings of the minimum balance of funds is void unless such
1546	deficiency of funds is cured by the corporation within 90 days
1547	after the corporation has notified the Department of
1548	Transportation of such deficiency.
1549	(b)  Unless specifically prohibited in the General
1550	Appropriations Act, the earnings accrued and collected upon the
1551	investment of the minimum balance of funds required to be
1552	maintained in the State Transportation Trust Fund may continue
1553	to be used pursuant to paragraph (a).
1554	(c)  The guaranty is shall not be a general obligation of
1555	the corporation or of the state, but is shall be a special
1556	obligation, which constitutes the investment of a public trust
1557	fund. In no event shall the guaranty constitute an indebtedness
1558	of the corporation, the state of Florida, or any political
1559	subdivision thereof within the meaning of any constitutional or
1560	statutory limitation. Each guaranty agreement shall have plainly
1561	stated on the face thereof that it has been entered into under
1562	the provisions of this act and that it does not constitute an
1563	indebtedness of the corporation, the state, or any political
1564	subdivision thereof within any constitutional or statutory
1565	limitation, and that neither the full faith and credit of the
1566	state of Florida nor any of its revenues is pledged to meet any
1567	of the obligations of the corporation under such guaranty
1568	agreement. Each such agreement shall state that the obligation
1569	of the corporation under the guaranty shall be limited to the
1570	funds available in the Energy, Technology, and Economic
1571	Development Guaranty Fund Revenue Bond Guaranty Reserve Account
1572	as authorized by this section.
1573
1574	The corporation shall include, as part of the annual report
1575	prepared pursuant to s. 288.9610, a detailed report concerning
1576	the use of guaranteed bond proceeds for loans guaranteed or
1577	issued pursuant to any agreement with the Florida Black Business
1578	Investment Board, including the percentage of such loans
1579	guaranteed or issued and the total volume of such loans
1580	guaranteed or issued.
1581	(8)  In the event the corporation does not approve the
1582	application for a guaranty, the applicant shall be notified in
1583	writing of the corporation's determination that the application
1584	not be approved.
1585	(9)  The membership of the corporation is authorized and
1586	directed to conduct such investigation as it may deem necessary
1587	for promulgation of regulations to govern the operation of the
1588	guaranty program authorized by this section. The regulations may
1589	include such other additional provisions, restrictions, and
1590	conditions as the corporation, after its investigation referred
1591	to in this subsection, shall determine to be proper to achieve
1592	the most effective utilization of the guaranty program. This may
1593	include, without limitation, a detailing of the remedies that
1594	must be exhausted by the bondholders, or a trustee acting on
1595	their behalf, or other credit provided before prior to calling
1596	upon the corporation to perform under its guaranty agreement and
1597	the subrogation of other rights of the corporation with
1598	reference to the capital project and its operation or the
1599	financing in the event the corporation makes payment pursuant to
1600	the applicable guaranty agreement. The regulations promulgated
1601	by the corporation to govern the operation of the guaranty
1602	program may shall contain specific provisions with respect to
1603	the rights of the corporation to enter, take over, and manage
1604	all financed properties upon default. These regulations shall be
1605	submitted by set forth the respective rights of the corporation
1606	to the Florida Energy and Climate Commission for approval and
1607	the bondholders in regard thereto.
1608	(10)  The guaranty program described in this section may be
1609	used by the corporation in conjunction with any federal guaranty
1610	programs described in s. 406 of the American Recovery and
1611	Reinvestment Act of 2009. All policies, procedures, and
1612	regulations of the guaranty program adopted by the corporation,
1613	to the extent such guaranty program of the corporation is used
1614	in conjunction with a federal guaranty program described in s.
1615	406 of the American Recovery and Reinvestment Act of 2009, must
1616	be consistent with s. 406 of the American Recovery and
1617	Reinvestment Act of 2009.
1618	Section 17.  Section 288.9608, Florida Statutes, is amended
1619	to read:
1620	288.9608  Creation and funding of the Energy, Technology,
1621	and Economic Development Guaranty Fund guaranty account.-
1622	(1)  The corporation shall establish a debt service reserve
1623	account which contains not less than 6 months' debt service
1624	reserves from the proceeds of the sale of any bonds guaranteed
1625	by the corporation. Funds in such debt service reserve account
1626	shall be used prior to funds in the Revenue Bond Guaranty
1627	Reserve Account established in subsection (2). The corporation
1628	shall make best efforts to liquidate collateralized property and
1629	draw upon personal guarantees, and shall utilize the Revenue
1630	Bond Guaranty Reserve Account prior to use of supplemental
1631	funding for the Guaranty Reserve Account under the provisions of
1632	subsection (3).
1633	(2)(a)  The corporation shall establish an account known as
1634	the Energy, Technology, and Economic Development Guaranty Fund
1635	Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1636	corporation may shall deposit moneys a sum of money or other
1637	cash equivalents into the this fund and maintain a balance in
1638	the this fund, from general revenue funds of the state as are
1639	authorized for that purpose or any other designated funding
1640	sources not inconsistent with state law sources other than the
1641	State Transportation Trust Fund, not less than a sum equal to 1
1642	year of maximum debt service on all outstanding bonds, or
1643	portions thereof, of the corporation for which a guaranty has
1644	been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
1645	(2)(b)  If the corporation determines that the moneys in
1646	the guaranty agreement fund are not sufficient to meet the
1647	obligations of the guaranty agreement fund, the corporation is
1648	authorized to use the necessary amount of any available moneys
1649	that it may have which are not needed for, then or in the
1650	foreseeable future, or committed to other authorized functions
1651	and purposes of the corporation. Any such moneys so used may be
1652	reimbursed out of the guaranty agreement fund if and when there
1653	are moneys therein available for the purpose.
1654	(3)(c)  The determination of when additional moneys will be
1655	needed for the guaranty agreement fund, the amounts that will be
1656	needed, and the availability or unavailability of other moneys
1657	shall be made solely by the corporation in the exercise of its
1658	discretion. However, supplemental funding for the Guaranty Fund
1659	as described in subsection (3) shall be made in accordance with
1660	the investment agreement of the corporation and the Department
1661	of Transportation and the State Board of Administration.
1662	(3)(a)  If the corporation determines that the funds in the
1663	Guaranty Fund will not be sufficient to meet the present or
1664	reasonably projected obligations of the Guaranty Fund, due to a
1665	default on a loan made by the corporation from the proceeds of a
1666	bond issued by the corporation which is guaranteed pursuant to
1667	s. 288.9607(7), no later than 90 days before amortization
1668	payments are due on such bonds, the corporation shall notify the
1669	Secretary of Transportation and the State Board of
1670	Administration of the amount of funds required to meet, as and
1671	when due, all amortization payments for which the Guaranty Fund
1672	is obligated. The Secretary of Transportation shall immediately
1673	notify the Speaker of the House of Representatives, the
1674	President of the Senate, and the chairs of the Senate and House
1675	Committees on Appropriations of the amount of funds required,
1676	and the projected impact on each affected year of the adopted
1677	work program of the Department of Transportation.
1678	(b)  Within 30 days of the receipt of notification from the
1679	corporation, the Department of Transportation shall submit a
1680	budget amendment request to the Executive Office of the Governor
1681	pursuant to chapter 216, to increase budget authority to carry
1682	out the purposes of this section. Upon approval of said
1683	amendment, the department shall proceed to amend the adopted
1684	work program, if necessary, in accordance with the amendment.
1685	Within 60 days of the receipt of notification, and subject to
1686	approval of the budget authority, the Secretary of
1687	Transportation shall transfer, subject to the amount available
1688	from the source described in paragraph (c), the amount of funds
1689	requested by the corporation required to meet, as and when due,
1690	all amortization payments for which the Guaranty Fund is
1691	obligated. Any moneys so transferred shall be reimbursed to the
1692	Department of Transportation, with interest at the rate earned
1693	on investment by the State Treasury, from the funds available in
1694	the Guaranty Fund or as otherwise available to the corporation.
1695	(c)  Pursuant to s. 288.9607(7), the Secretary of
1696	Transportation and the State Board of Administration may make
1697	available for transfer to the Guaranty Fund, earnings accrued
1698	and collected upon the investment of the minimum balance of
1699	funds required to be maintained in the State Transportation
1700	Trust Fund. However, the earnings accrued and collected upon the
1701	investment of the minimum balance of funds required to be
1702	maintained in the State Transportation Trust Fund which shall be
1703	subject to transfer shall be limited to those earnings accrued
1704	and collected on the investment of the minimum balance of funds
1705	required to be maintained in the State Transportation Trust Fund
1706	for the fiscal year in which the notification is received by the
1707	secretary and fiscal years thereafter.
1708	(4)  If the corporation receives supplemental funding for
1709	the Guaranty Fund under the provisions of this section, then any
1710	proceeds received by the corporation with respect to a loan in
1711	default, including proceeds from the sale of collateral for such
1712	loan, enforcement of personal guarantees or other pledges to the
1713	corporation to secure such loan, shall first be applied to the
1714	obligation of the corporation to repay the Department of
1715	Transportation pursuant to this section. Until such repayment is
1716	complete, no new bonds may be guaranteed pursuant to this
1717	section.
1718	(5)  Prior to the use of the guaranty provided in this
1719	section, and on an annual basis, the corporation must certify in
1720	writing to the State Board of Administration and the Secretary
1721	of Transportation that it has fully implemented the requirements
1722	of this section and s. 288.9607 and the regulations of the
1723	corporation.
1724	Section 18.  Section 288.9609, Florida Statutes, is amended
1725	to read:
1726	288.9609  Bonds as legal investments.-All banks, trust
1727	companies, bankers, savings banks and institutions, building and
1728	loan associations, savings and loan associations, investment
1729	companies, and other persons carrying on a banking and
1730	investment business; all insurance companies, insurance
1731	associations, and other persons carrying on an insurance
1732	business; and all executors, administrators, curators, trustees,
1733	and other fiduciaries may legally invest any sinking funds,
1734	moneys, or other funds belonging to them or within their control
1735	in any bonds or other obligations issued by the corporation
1736	pursuant to an interlocal agreement with a public agency of this
1737	state. Such bonds and obligations shall be authorized security
1738	for all public deposits. It is the purpose of this section to
1739	authorize all persons, political subdivisions, and officers,
1740	public and private, to use any funds owned or controlled by them
1741	for the purchase of any such bonds or other obligations. Nothing
1742	contained in this section with regard to legal investments shall
1743	be construed as relieving any person of any duty of exercising
1744	reasonable care in selecting securities.
1745	Section 19.  Section 288.9610, Florida Statutes, is amended
1746	to read:
1747	288.9610  Annual reports of Florida Development Finance
1748	Corporation.-By December 1 of each year, the Florida Development
1749	Finance Corporation shall submit to the Governor, the President
1750	of the Senate, the Speaker of the House of Representatives, the
1751	Senate Minority Leader, and the House Minority Leader, and the
1752	city or county activating the Florida Development Finance
1753	Corporation a complete and detailed report setting forth:
1754	(1)  The evaluation required in s. 11.45(3)(j).
1755	(2)  The operations and accomplishments of the Florida
1756	Development Finance Corporation, including the number of
1757	businesses assisted by the corporation.
1758	(3)  Its assets and liabilities at the end of its most
1759	recent fiscal year, including a description of all of its
1760	outstanding revenue bonds.
1761	Section 20.  Subsection (4) of section 206.46, Florida
1762	Statutes, is amended to read:
1763	206.46  State Transportation Trust Fund.-
1764	(4)  The department may authorize the investment of the
1765	earnings accrued and collected upon the investment of the
1766	minimum balance of funds required to be maintained in the State
1767	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1768	investment shall be limited as provided in s. 288.9607(7).
1769	Section 21.  Subsection (14) of section 215.47, Florida
1770	Statutes, is amended to read:
1771	215.47  Investments; authorized securities; loan of
1772	securities.-Subject to the limitations and conditions of the
1773	State Constitution or of the trust agreement relating to a trust
1774	fund, moneys available for investments under ss. 215.44-215.53
1775	may be invested as follows:
1776	(14)  The State Board of Administration, consistent with
1777	sound investment policy, may invest the earnings accrued and
1778	collected upon the investment of the minimum balance of funds
1779	required to be maintained in the State Transportation Trust Fund
1780	pursuant to s. 339.135(6)(b). Such investment shall be limited
1781	as provided in s. 288.9607(7).
1782	Section 22.  Subsection (3) of section 339.08, Florida
1783	Statutes, is amended to read:
1784	339.08  Use of moneys in State Transportation Trust Fund.-
1785	(3)  The department may authorize the investment of the
1786	earnings accrued and collected upon the investment of the
1787	minimum balance of funds required to be maintained in the State
1788	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1789	investment shall be limited as provided in s. 288.9607(7).
1790	Section 23.  Paragraph (f) of subsection (7) of section
1791	339.135, Florida Statutes, is amended to read:
1792	339.135  Work program; legislative budget request;
1793	definitions; preparation, adoption, execution, and amendment.-
1794	(7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.-
1795	(f)  The department may authorize the investment of the
1796	earnings accrued and collected upon the investment of the
1797	minimum balance of funds required to be maintained in the State
1798	Transportation Trust Fund pursuant to paragraph (b). Such
1799	investment shall be limited as provided in s. 288.9607(7).
1800	Section 24.  If any provision of this act or the
1801	application thereof to any person or circumstance is held
1802	invalid, the invalidity does not affect other provisions or
1803	applications of the act that may be given effect without the
1804	invalid provision or application, and to this end the provisions
1805	of this act are declared to be severable.
1806	Section 25.  This act shall take effect July 1, 2010.

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