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

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