Florida Senate - 2013                       CS for CS for SB 560
       
       
       
       By the Committees on Appropriations; and Transportation; and
       Senators Simpson, Bean, Bradley, Stargel, Latvala, Grimsley,
       Evers, Soto, Ring, Gibson, Hays, Lee, Altman, Thompson, Garcia,
       and Diaz de la Portilla
       
       576-04662-13                                           2013560c2
    1                        A bill to be entitled                      
    2         An act relating to natural gas motor fuel; amending s.
    3         206.86, F.S.; deleting definitions for the terms
    4         “alternative fuel” and “natural gasoline”; amending s.
    5         206.87, F.S.; conforming a cross-reference; repealing
    6         s. 206.877, F.S., relating to the annual decal fee
    7         program for motor vehicles powered by alternative
    8         fuels; repealing s. 206.89, F.S., relating to the
    9         requirements for alternative fuel retailer licenses;
   10         amending s. 206.91, F.S.; making grammatical and
   11         technical changes; providing a directive to the
   12         Division of Law Revision and Information; creating s.
   13         206.9951, F.S.; providing definitions; creating s.
   14         206.9952, F.S.; establishing requirements for natural
   15         gas fuel retailer licenses; providing penalties for
   16         certain licensure violations; creating s. 206.9955,
   17         F.S.; providing calculations for a motor fuel
   18         equivalent gallon; providing for the levy of the
   19         natural gas fuel tax; authorizing the Department of
   20         Revenue to adopt rules; creating s. 206.996, F.S.;
   21         establishing requirements for monthly reports of
   22         natural gas fuel retailers; providing that reports are
   23         made under the penalties of perjury; allowing natural
   24         gas fuel retailers to seek a deduction of the tax
   25         levied under specified conditions; creating s.
   26         206.9965, F.S.; providing exemptions and refunds from
   27         the natural gas fuel tax; transferring, renumbering,
   28         and amending s. 206.879, F.S.; revising provisions
   29         relating to the state and local alternative fuel user
   30         fee clearing trust funds; creating s. 206.998, F.S.;
   31         providing for the applicability of specified sections
   32         of parts I and II of ch. 206, F.S.; amending s.
   33         212.055, F.S.; expanding the use of the local
   34         government infrastructure surtax to include the
   35         installation of systems for natural gas fuel; amending
   36         s. 212.08, F.S.; providing an exemption from taxes for
   37         natural gas fuel under certain circumstances;
   38         directing the Office of Program Policy Analysis and
   39         Government Accountability to complete a report
   40         reviewing the taxation of natural gas fuel; requiring
   41         the report to be submitted to the Legislature by a
   42         specified date; creating the natural gas fuel fleet
   43         vehicle rebate program within the Department of
   44         Agriculture and Consumer Services; providing
   45         definitions; prescribing powers and duties of the
   46         department with respect to the program; prescribing
   47         limits on rebate awards; providing policies and
   48         procedures for application approval; requiring the
   49         department to adopt rules by a specified date;
   50         requiring the department to publish on its website the
   51         availability of rebate funds; requiring the department
   52         to submit an annual assessment to the Governor, the
   53         Legislature, and the Office of Program Policy Analysis
   54         and Government Accountability by a specified date;
   55         requiring the Office of Program Policy Analysis and
   56         Government Accountability to submit a report to the
   57         Governor and the Legislature by a specified date;
   58         providing report requirements; providing that funding
   59         for the program is subject to an annual appropriation;
   60         providing effective dates.
   61  
   62  Be It Enacted by the Legislature of the State of Florida:
   63  
   64         Section 1. Section 206.86, Florida Statutes, is amended to
   65  read:
   66         206.86 Definitions.—As used in this part:
   67         (1) “Diesel fuel” means all petroleum distillates commonly
   68  known as diesel #2, biodiesel, or any other product blended with
   69  diesel or any product placed into the storage supply tank of a
   70  diesel-powered motor vehicle.
   71         (2) “Taxable diesel fuel” or “fuel” means any diesel fuel
   72  not held in bulk storage at a terminal and which has not been
   73  dyed for exempt use in accordance with Internal Revenue Code
   74  requirements.
   75         (3) “User” includes any person who uses diesel fuels within
   76  this state for the propulsion of a motor vehicle on the public
   77  highways of this state, even though the motor is also used for a
   78  purpose other than the propulsion of the vehicle.
   79         (4) “Alternative fuel” means any liquefied petroleum gas
   80  product or compressed natural gas product or combination thereof
   81  used in an internal combustion engine or motor to propel any
   82  form of vehicle, machine, or mechanical contrivance. This term
   83  includes, but is not limited to, all forms of fuel commonly or
   84  commercially known or sold as natural gasoline, butane gas,
   85  propane gas, or any other form of liquefied petroleum gas or
   86  compressed natural gas.
   87         (5) “Natural gasoline” is a liquid hydrocarbon that is
   88  produced by natural gas and must be blended with other liquid
   89  petroleum products to produce motor fuel.
   90         (4)(6) “Removal” means any physical transfer of diesel fuel
   91  and any use of diesel fuel other than as a material in the
   92  production of diesel fuel.
   93         (5)(7) “Blender” means any person who that produces blended
   94  diesel fuel outside the bulk transfer/terminal system.
   95         (6)(8) “Colorless marker” means material that is not
   96  perceptible to the senses until the diesel fuel into which it is
   97  introduced is subjected to a scientific test.
   98         (7)(9) “Dyed diesel fuel” means diesel fuel that is dyed in
   99  accordance with United States Environmental Protection Agency or
  100  Internal Revenue Service requirements for high sulfur diesel
  101  fuel or low sulfur diesel fuel.
  102         (8)(10) “Ultimate vendor” means a licensee that sells
  103  undyed diesel fuel to the United States or its departments or
  104  agencies in bulk lots of not less than 500 gallons in each
  105  delivery or to the user of the diesel fuel for use on a farm for
  106  farming purposes.
  107         (9)(11) “Local government user of diesel fuel” means any
  108  county, municipality, or school district licensed by the
  109  department to use untaxed diesel fuel in motor vehicles.
  110         (10)(12) “Mass transit system” means any licensed local
  111  transportation company providing local bus service that is open
  112  to the public and that travels regular routes.
  113         (11)(13) “Diesel fuel registrant” means anyone required by
  114  this chapter to be licensed to remit diesel fuel taxes,
  115  including, but not limited to, terminal suppliers, importers,
  116  local government users of diesel fuel, and mass transit systems.
  117         (12)(14) “Biodiesel” means any product made from
  118  nonpetroleum-based oils or fats which is suitable for use in
  119  diesel-powered engines. Biodiesel is also referred to as alkyl
  120  esters.
  121         (13)(15) “Biodiesel manufacturer” means those industrial
  122  plants, regardless of capacity, where organic products are used
  123  in the production of biodiesel. This includes businesses that
  124  process or blend organic products that are marketed as
  125  biodiesel.
  126         Section 2. Paragraph (a) of subsection (1) of section
  127  206.87, Florida Statutes, is amended to read:
  128         206.87 Levy of tax.—
  129         (1)(a) An excise tax of 4 cents per gallon is hereby
  130  imposed upon each net gallon of diesel fuel subject to the tax
  131  under subsection (2), except alternative fuels which are subject
  132  to the fee imposed by s. 206.877.
  133         Section 3. Section 206.877, Florida Statutes, is repealed.
  134         Section 4. Section 206.89, Florida Statutes, is repealed.
  135         Section 5. Subsection (1) of section 206.91, Florida
  136  Statutes, is amended to read:
  137         206.91 Tax reports; computation and payment of tax.—
  138         (1) For the purpose of determining the amount of taxes
  139  imposed by s. 206.87, each diesel fuel registrant shall, not
  140  later than the 20th day of each calendar month, mail to the
  141  department, on forms prescribed by the department, monthly
  142  reports that provide which shall show such information on
  143  inventories, purchases, nontaxable disposals, and taxable sales
  144  in gallons of diesel fuel and alternative fuel, for the
  145  preceding calendar month as may be required by the department.
  146  However, if the 20th day falls on a Saturday, a Sunday, or a
  147  federal or state legal holiday, returns shall be accepted if
  148  postmarked on the next succeeding workday. The reports must
  149  include, shall contain or be verified by, a written declaration
  150  stating that they are such report is made under the penalties of
  151  perjury. The diesel fuel registrant shall deduct from the amount
  152  of taxes shown by the report to be payable an amount equivalent
  153  to .67 percent of the taxes on diesel fuel imposed by s.
  154  206.87(1)(a) and (e), which deduction is hereby allowed to the
  155  diesel fuel registrant on account of services and expenses in
  156  complying with the provisions of this part. The allowance on
  157  taxable gallons of diesel fuel sold to persons licensed under
  158  this chapter is not shall not be deductible unless the diesel
  159  fuel registrant has allowed 50 percent of the allowance provided
  160  by this section to a purchaser with a valid wholesaler or
  161  terminal supplier license. This allowance is not shall not be
  162  deductible unless payment of the taxes is made on or before the
  163  20th day of the month as herein required in this subsection.
  164  Nothing in This subsection does not shall be construed to
  165  authorize a deduction from the constitutional fuel tax or fuel
  166  sales tax.
  167         Section 6. The Division of Law Revision and Information is
  168  requested to create part V of chapter 206, Florida Statutes,
  169  consisting of ss. 206.9951-206.998, entitled “NATURAL GAS FUEL.”
  170         Section 7. Section 206.9951, Florida Statutes, is created
  171  to read:
  172         206.9951Definitions.—As used in this part, the term:
  173         (1) “Motor fuel equivalent gallon” means the volume of
  174  natural gas fuel it takes to equal the energy content of 1
  175  gallon of motor fuel.
  176         (2) “Natural gas fuel” means any liquefied petroleum gas
  177  product, compressed natural gas product, or combination thereof
  178  used in a motor vehicle as defined in s. 206.01(23). This term
  179  includes, but is not limited to, all forms of fuel commonly or
  180  commercially known or sold as natural gasoline, butane gas,
  181  propane gas, or any other form of liquefied petroleum gas,
  182  compressed natural gas, or liquefied natural gas. This term does
  183  not include natural gas or liquefied petroleum placed in a
  184  separate tank of a motor vehicle for cooking, heating, water
  185  heating, or electric generation.
  186         (3) “Natural gas fuel retailer” means any person who sells,
  187  produces or refines natural gas fuel for use in a motor vehicle
  188  as defined in s. 206.01(23). This term does not include
  189  individuals specified in s. 206.9965(5).
  190         (4) “Natural gasoline” is a liquid hydrocarbon that is
  191  produced by natural gas and must be blended with other liquid
  192  petroleum products to produce motor fuel.
  193         (5) “Person” means a natural person, corporation,
  194  copartnership, firm, company, agency, or association; a state
  195  agency; a federal agency; or a political subdivision of the
  196  state.
  197         Section 8. Section 206.9952, Florida Statutes, is created
  198  to read:
  199         206.9952Application for license as a natural gas fuel
  200  retailer.—
  201         (1) It is unlawful for any person to engage in business as
  202  a natural gas fuel retailer within this state unless the person
  203  is the holder of a valid license issued by the department to
  204  engage in such business.
  205         (2) A person who has facilities for placing natural gas
  206  fuel into the supply system of an internal combustion engine
  207  fueled by individual portable containers of 10 gallons or less
  208  is not required to be licensed as a natural gas fuel retailer,
  209  provided that the fuel is only used for exempt purposes.
  210         (3)(a) Any person who acts as a natural gas retailer and
  211  does not hold a valid natural gas fuel retailer license shall
  212  pay a penalty of $200 for each month of operation without a
  213  license. This paragraph expires December 31, 2018.
  214         (b) Effective January 1, 2019, any person who acts as a
  215  natural gas fuel retailer and does not hold a valid natural gas
  216  fuel retailer license shall pay a penalty of 25 percent of the
  217  tax assessed on the total purchases made during the unlicensed
  218  period.
  219         (4) To procure a natural gas fuel retailer license, a
  220  person shall file an application and a bond with the department
  221  on a form prescribed by the department. The department may not
  222  issue a license upon the receipt of any application unless it is
  223  accompanied by a bond.
  224         (5) When a natural gas fuel retailer license application is
  225  filed by a person whose previous license was canceled for cause
  226  by the department or the department believes that such
  227  application was not filed in good faith or is filed by another
  228  person as a subterfuge for the actual person in interest whose
  229  previous license has been canceled, the department may, if
  230  evidence warrants, refuse to issue a license for such an
  231  application.
  232         (6) Upon the department’s issuance of a natural gas fuel
  233  retailer license, such license remains in effect so long as the
  234  natural gas fuel retailer is in compliance with the requirements
  235  of this part.
  236         (7) Such license may not be assigned and is valid only for
  237  the natural gas fuel retailer in whose name the license is
  238  issued. The license shall be displayed conspicuously by the
  239  natural gas fuel retailer in the principal place of business for
  240  which the license was issued.
  241         (8) With the exception of a state or federal agency or a
  242  political subdivision licensed under this chapter, each person,
  243  as defined in this part, who operates as a natural gas fuel
  244  retailer shall report monthly to the department and pay a tax on
  245  all natural gas fuel purchases beginning January 1, 2019.
  246         (9) The license application requires a license fee of $5.
  247  Each license shall be renewed annually by submitting a
  248  reapplication and the license fee to the department. The license
  249  fee shall be paid to the department for deposit into the General
  250  Revenue Fund.
  251         Section 9. Section 206.9955, Florida Statutes, is created
  252  to read:
  253         206.9955Levy of natural gas fuel tax.—
  254         (1) The motor fuel equivalent gallon means the following
  255  for:
  256         (a) Compressed natural gas gallon: 5.66 pounds, or per each
  257  126.67 cubic feet.
  258         (b) Liquefied natural gas gallon: 6.06 pounds.
  259         (c) Liquefied petroleum gas gallon: 1.35 gallons.
  260         (2) Effective January 1, 2019, the following taxes shall be
  261  imposed:
  262         (a) An excise tax of 4 cents upon each motor fuel
  263  equivalent gallon of natural gas fuel.
  264         (b) An additional tax of 1 cent upon each motor fuel
  265  equivalent gallon of natural gas fuel, which is designated as
  266  the “ninth-cent fuel tax.”
  267         (c) An additional tax of 1 cent on each motor fuel
  268  equivalent gallon of natural gas fuel by each county, which is
  269  designated as the “local option fuel tax.”
  270         (d) An additional tax on each motor fuel equivalent gallon
  271  of natural gas fuel, which is designated as the “State
  272  Comprehensive Enhanced Transportation System Tax,” at a rate
  273  determined pursuant to this paragraph. Each calendar year, the
  274  department shall determine the tax rate applicable to the sale
  275  of natural gas fuel for the following 12-month period beginning
  276  January 1, rounded to the nearest tenth of a cent, by adjusting
  277  the initially established tax rate of 5.8 cents per gallon by
  278  the percentage change in the average of the Consumer Price Index
  279  issued by the United States Department of Labor for the most
  280  recent 12-month period ending September 30.
  281         (e)1. An additional tax is imposed on each motor fuel
  282  equivalent gallon of natural gas fuel for the privilege of
  283  selling natural gas fuel. Each calendar year, the department
  284  shall determine the tax rate applicable to the sale of natural
  285  gas fuel, rounded to the nearest tenth of a cent, for the
  286  following 12-month period beginning January 1. The tax rate is
  287  calculated by adjusting the initially established tax rate of
  288  9.2 cents per gallon by the percentage change in the average of
  289  the Consumer Price Index issued by the United States Department
  290  of Labor for the most recent 12-month period ending September
  291  30.
  292         2. The department is authorized to adopt rules and publish
  293  forms to administer this paragraph.
  294         (3) Unless otherwise provided by this chapter, the taxes
  295  specified in subsection (2) are imposed on natural gas fuel when
  296  it is placed into the fuel supply tank of a motor vehicle as
  297  defined in s. 206.01(23). The person liable for payment of the
  298  taxes imposed by this section is the person selling or supplying
  299  the natural gas fuel to the end user, for use in the fuel supply
  300  tank of a motor vehicle as defined in s. 206.01(23).
  301         Section 10. Section 206.996, Florida Statutes, is created
  302  to read:
  303         206.996Monthly reports by natural gas fuel retailers;
  304  deductions.—
  305         (1) For the purpose of determining the amount of taxes
  306  imposed by s. 206.9955, each natural gas fuel retailer shall
  307  file beginning with February 2019, and each month thereafter, no
  308  later than the 20th day of each month, monthly reports
  309  electronically with the department showing information on
  310  inventory, purchases, nontaxable disposals, taxable uses, and
  311  taxable sales in gallons of natural gas fuel for the preceding
  312  month. However, if the 20th day of the month falls on a
  313  Saturday, Sunday, or federal or state legal holiday, a return
  314  must be accepted if it is electronically filed on the next
  315  succeeding business day. The reports must include, or be
  316  verified by, a written declaration stating that such report is
  317  made under the penalties of perjury. The natural gas fuel
  318  retailer shall deduct from the amount of taxes shown by the
  319  report to be payable an amount equivalent to 0.67 percent of the
  320  taxes on natural gas fuel imposed by s. 206.9955(2)(a) and (e),
  321  which deduction is allowed to the natural gas fuel retailer to
  322  compensate it for services rendered and expenses incurred in
  323  complying with the requirements of this part. This allowance is
  324  not deductible unless payment of applicable taxes is made on or
  325  before the 20th day of the month. This subsection may not be
  326  construed as authorizing a deduction from the constitutional
  327  fuel tax or the fuel sales tax.
  328         (2) Upon the electronic filing of the monthly report, each
  329  natural gas fuel retailer shall pay the department the full
  330  amount of natural gas fuel taxes for the preceding month at the
  331  rate provided in s. 206.9955, less the amount allowed the
  332  natural gas fuel retailer for services and expenses as provided
  333  in subsection (1).
  334         (3) The department may authorize a quarterly return and
  335  payment of taxes when the taxes remitted by the natural gas fuel
  336  retailer for the preceding quarter did not exceed $100, and the
  337  department may authorize a semiannual return and payment of
  338  taxes when the taxes remitted by the natural gas fuel retailer
  339  for the preceding 6 months did not exceed $200.
  340         (4) In addition to the allowance authorized by subsection
  341  (1), every natural gas fuel retailer is entitled to a deduction
  342  of 1.1 percent of the taxes imposed under s. 206.9955(2)(b) and
  343  (c), on account of services and expenses incurred due to
  344  compliance with the requirements of this part. This allowance
  345  may not be deductible unless payment of the tax is made on or
  346  before the 20th day of the month.
  347         Section 11. Section 206.9965, Florida Statutes, is created
  348  to read:
  349         206.9965Exemptions and refunds; natural gas fuel
  350  retailers.—Natural gas fuel may be purchased from natural gas
  351  fuel retailers exempt from the tax imposed by this part when
  352  used or purchased for the following:
  353         (1) Exclusive use by the United States or its departments
  354  or agencies. Exclusive use by the United States or its
  355  departments and agencies means the consumption by the United
  356  States or its departments or agencies of the natural gas fuel in
  357  a motor vehicle as defined in s. 206.01(23).
  358         (2) Use for agricultural purposes as defined in s.
  359  206.41(4)(c).
  360         (3) Uses as provided in s. 206.874(3).
  361         (4) Use by vehicles operated by state and local government
  362  agencies.
  363         (5) Individual use resulting from residential refueling
  364  devices located at a person’s primary residence.
  365         (6) Purchases of natural gas fuel between licensed natural
  366  gas fuel retailers. A natural gas fuel retailer that sells tax
  367  paid natural gas fuel to another natural gas fuel retailer may
  368  take a credit on its monthly return or may file a claim for
  369  refund with the Chief Financial Officer pursuant to s. 215.26.
  370  All sales of natural gas fuel between natural gas fuel retailers
  371  must be documented on invoices or other evidence of the sale of
  372  such fuel and the seller shall retain a copy of the purchaser’s
  373  natural gas fuel retailer license.
  374         (7) Natural gas fuel consumed by a power take off or engine
  375  exhaust for the purpose of unloading bulk cargo by pumping or
  376  turning a concrete mixer drum used in the manufacturing process,
  377  or for the purpose of compacting solid waste, which is mounted
  378  on a motor vehicle and which has no separate fuel tank or power
  379  unit, is allowed a refund of 35 percent of the tax paid on the
  380  fuel purchased.
  381         Section 12. Section 206.879, Florida Statutes, is
  382  transferred and renumbered as section 206.997, Florida Statutes,
  383  and amended to read:
  384         206.997 206.879 State and local alternative fuel user fee
  385  clearing trust funds; distribution.—
  386         (1) Notwithstanding the provisions of s. 206.875, the
  387  revenues from the state natural gas fuel tax imposed by s.
  388  206.9955(2)(a), s. 206.9955(2)(d), and s. 206.9955(2)(e) state
  389  alternative fuel fees imposed by s. 206.877 shall be deposited
  390  into the State Alternative Fuel User Fee Clearing Trust Fund,
  391  which is hereby created. After deducting the service charges
  392  provided in s. 215.20, the proceeds in this trust fund shall be
  393  distributed as follows: the taxes imposed under s.
  394  206.9955(2)(d) and s. 206.9955(2)(e) one-fifth of the proceeds
  395  in calendar year 1991, one-third of the proceeds in calendar
  396  year 1992, three-sevenths of the proceeds in calendar year 1993,
  397  and one-half of the proceeds in each calendar year thereafter
  398  shall be transferred to the State Transportation Trust Fund and
  399  the tax imposed under s. 206.9955(2)(a); the remainder shall be
  400  distributed as follows: 50 percent shall be transferred to the
  401  State Board of Administration for distribution according to the
  402  provisions of s. 16, Art. IX of the State Constitution of 1885,
  403  as amended; 25 percent shall be transferred to the Revenue
  404  Sharing Trust Fund for Municipalities; and the remaining 25
  405  percent shall be distributed using the formula contained in s.
  406  206.60(1).
  407         (2) Notwithstanding the provisions of s. 206.875, the
  408  revenues from the local natural gas fuel tax imposed by s.
  409  206.9955(2)(b) and s. 206.9955(2)(c) local alternative fuel fees
  410  imposed in lieu of s. 206.87(1)(b) or (c) shall be deposited
  411  into The Local Alternative Fuel User Fee Clearing Trust Fund,
  412  which is hereby created. After deducting the service charges
  413  provided in s. 215.20, the proceeds in this trust fund shall be
  414  returned monthly to the appropriate county.
  415         Section 13. Section 206.998, Florida Statutes, is created
  416  to read:
  417         206.998Applicability of specified sections of parts I and
  418  II.—The provisions of ss. 206.01, 206.02, 206.025, 206.026,
  419  206.027, 206.028, 206.03, 206.05, 206.055, 206.06, 206.07,
  420  206.075, 206.09, 206.10, 206.11, 206.12, 206.13, 206.14, 206.15,
  421  206.16, 206.17, 206.175, 206.18, 206.199, 206.20, 206.204,
  422  206.205, 206.21, 206.215, 206.22, 206.23, 206.24, 206.25,
  423  206.27, 206.28, 206.405, 206.406, 206.41, 206.413, 206.43,
  424  206.44, 206.48, 206.485, 206.49, 206.56, 206.59, 206.606,
  425  206.608, and 206.61, Florida Statutes, of part I of this chapter
  426  and ss. 206.86, 206.872, 206.874, 206.8745, 206.88, 206.90, and
  427  206.93, Florida Statutes, of part II of this chapter shall, as
  428  far as lawful or practicable, be applicable to the tax levied
  429  and imposed and to the collection thereof as if fully set out in
  430  this part. However, any provision of any such section does not
  431  apply if it conflicts with any provision of this part.
  432         Section 14. Paragraph (d) of subsection (2) of section
  433  212.055, Florida Statutes, is amended to read:
  434         212.055 Discretionary sales surtaxes; legislative intent;
  435  authorization and use of proceeds.—It is the legislative intent
  436  that any authorization for imposition of a discretionary sales
  437  surtax shall be published in the Florida Statutes as a
  438  subsection of this section, irrespective of the duration of the
  439  levy. Each enactment shall specify the types of counties
  440  authorized to levy; the rate or rates which may be imposed; the
  441  maximum length of time the surtax may be imposed, if any; the
  442  procedure which must be followed to secure voter approval, if
  443  required; the purpose for which the proceeds may be expended;
  444  and such other requirements as the Legislature may provide.
  445  Taxable transactions and administrative procedures shall be as
  446  provided in s. 212.054.
  447         (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.—
  448         (d) The proceeds of the surtax authorized by this
  449  subsection and any accrued interest shall be expended by the
  450  school district, within the county and municipalities within the
  451  county, or, in the case of a negotiated joint county agreement,
  452  within another county, to finance, plan, and construct
  453  infrastructure; to acquire land for public recreation,
  454  conservation, or protection of natural resources; to provide
  455  loans, grants, or rebates to residential or commercial property
  456  owners who make energy efficiency improvements to their
  457  residential or commercial property, if a local government
  458  ordinance authorizing such use is approved by referendum; or to
  459  finance the closure of county-owned or municipally owned solid
  460  waste landfills that have been closed or are required to be
  461  closed by order of the Department of Environmental Protection.
  462  Any use of the proceeds or interest for purposes of landfill
  463  closure before July 1, 1993, is ratified. The proceeds and any
  464  interest may not be used for the operational expenses of
  465  infrastructure, except that a county that has a population of
  466  fewer than 75,000 and that is required to close a landfill may
  467  use the proceeds or interest for long-term maintenance costs
  468  associated with landfill closure. Counties, as defined in s.
  469  125.011, and charter counties may, in addition, use the proceeds
  470  or interest to retire or service indebtedness incurred for bonds
  471  issued before July 1, 1987, for infrastructure purposes, and for
  472  bonds subsequently issued to refund such bonds. Any use of the
  473  proceeds or interest for purposes of retiring or servicing
  474  indebtedness incurred for refunding bonds before July 1, 1999,
  475  is ratified.
  476         1. For the purposes of this paragraph, the term
  477  “infrastructure” means:
  478         a. Any fixed capital expenditure or fixed capital outlay
  479  associated with the construction, reconstruction, or improvement
  480  of public facilities that have a life expectancy of 5 or more
  481  years and any related land acquisition, land improvement,
  482  design, and engineering costs.
  483         b. A fire department vehicle, an emergency medical service
  484  vehicle, a sheriff’s office vehicle, a police department
  485  vehicle, or any other vehicle, and the equipment necessary to
  486  outfit the vehicle for its official use or equipment that has a
  487  life expectancy of at least 5 years.
  488         c. Any expenditure for the construction, lease, or
  489  maintenance of, or provision of utilities or security for,
  490  facilities, as defined in s. 29.008.
  491         d. Any fixed capital expenditure or fixed capital outlay
  492  associated with the improvement of private facilities that have
  493  a life expectancy of 5 or more years and that the owner agrees
  494  to make available for use on a temporary basis as needed by a
  495  local government as a public emergency shelter or a staging area
  496  for emergency response equipment during an emergency officially
  497  declared by the state or by the local government under s.
  498  252.38. Such improvements are limited to those necessary to
  499  comply with current standards for public emergency evacuation
  500  shelters. The owner must enter into a written contract with the
  501  local government providing the improvement funding to make the
  502  private facility available to the public for purposes of
  503  emergency shelter at no cost to the local government for a
  504  minimum of 10 years after completion of the improvement, with
  505  the provision that the obligation will transfer to any
  506  subsequent owner until the end of the minimum period.
  507         e. Any land acquisition expenditure for a residential
  508  housing project in which at least 30 percent of the units are
  509  affordable to individuals or families whose total annual
  510  household income does not exceed 120 percent of the area median
  511  income adjusted for household size, if the land is owned by a
  512  local government or by a special district that enters into a
  513  written agreement with the local government to provide such
  514  housing. The local government or special district may enter into
  515  a ground lease with a public or private person or entity for
  516  nominal or other consideration for the construction of the
  517  residential housing project on land acquired pursuant to this
  518  sub-subparagraph.
  519         2. For the purposes of this paragraph, the term “energy
  520  efficiency improvement” means any energy conservation and
  521  efficiency improvement that reduces consumption through
  522  conservation or a more efficient use of electricity, natural
  523  gas, propane, or other forms of energy on the property,
  524  including, but not limited to, air sealing; installation of
  525  insulation; installation of energy-efficient heating, cooling,
  526  or ventilation systems; installation of solar panels; building
  527  modifications to increase the use of daylight or shade;
  528  replacement of windows; installation of energy controls or
  529  energy recovery systems; installation of electric vehicle
  530  charging equipment; installation of systems for natural gas fuel
  531  as defined in s. 206.9951; and installation of efficient
  532  lighting equipment.
  533         3. Notwithstanding any other provision of this subsection,
  534  a local government infrastructure surtax imposed or extended
  535  after July 1, 1998, may allocate up to 15 percent of the surtax
  536  proceeds for deposit into in a trust fund within the county’s
  537  accounts created for the purpose of funding economic development
  538  projects having a general public purpose of improving local
  539  economies, including the funding of operational costs and
  540  incentives related to economic development. The ballot statement
  541  must indicate the intention to make an allocation under the
  542  authority of this subparagraph.
  543         Section 15. Paragraph (a) of subsection (4) of section
  544  212.08, Florida Statutes, is amended to read:
  545         212.08 Sales, rental, use, consumption, distribution, and
  546  storage tax; specified exemptions.—The sale at retail, the
  547  rental, the use, the consumption, the distribution, and the
  548  storage to be used or consumed in this state of the following
  549  are hereby specifically exempt from the tax imposed by this
  550  chapter.
  551         (4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.—
  552         (a) Also exempt are:
  553         1. Water delivered to the purchaser through pipes or
  554  conduits or delivered for irrigation purposes. The sale of
  555  drinking water in bottles, cans, or other containers, including
  556  water that contains minerals or carbonation in its natural state
  557  or water to which minerals have been added at a water treatment
  558  facility regulated by the Department of Environmental Protection
  559  or the Department of Health, is exempt. This exemption does not
  560  apply to the sale of drinking water in bottles, cans, or other
  561  containers if carbonation or flavorings, except those added at a
  562  water treatment facility, have been added. Water that has been
  563  enhanced by the addition of minerals and that does not contain
  564  any added carbonation or flavorings is also exempt.
  565         2. All fuels used by a public or private utility, including
  566  any municipal corporation or rural electric cooperative
  567  association, in the generation of electric power or energy for
  568  sale. Fuel other than motor fuel and diesel fuel is taxable as
  569  provided in this chapter with the exception of fuel expressly
  570  exempt herein. Natural gas and natural gas fuel as defined in s.
  571  206.9951(2) are exempt from the tax imposed by this chapter when
  572  placed into the fuel supply system of a motor vehicle. Motor
  573  fuels and diesel fuels are taxable as provided in chapter 206,
  574  with the exception of those motor fuels and diesel fuels used by
  575  railroad locomotives or vessels to transport persons or property
  576  in interstate or foreign commerce, which are taxable under this
  577  chapter only to the extent provided herein. The basis of the tax
  578  shall be the ratio of intrastate mileage to interstate or
  579  foreign mileage traveled by the carrier’s railroad locomotives
  580  or vessels that were used in interstate or foreign commerce and
  581  that had at least some Florida mileage during the previous
  582  fiscal year of the carrier, such ratio to be determined at the
  583  close of the fiscal year of the carrier. However, during the
  584  fiscal year in which the carrier begins its initial operations
  585  in this state, the carrier’s mileage apportionment factor may be
  586  determined on the basis of an estimated ratio of anticipated
  587  miles in this state to anticipated total miles for that year,
  588  and subsequently, additional tax shall be paid on the motor fuel
  589  and diesel fuels, or a refund may be applied for, on the basis
  590  of the actual ratio of the carrier’s railroad locomotives’ or
  591  vessels’ miles in this state to its total miles for that year.
  592  This ratio shall be applied each month to the total Florida
  593  purchases made in this state of motor and diesel fuels to
  594  establish that portion of the total used and consumed in
  595  intrastate movement and subject to tax under this chapter. The
  596  basis for imposition of any discretionary surtax shall be set
  597  forth in s. 212.054. Fuels used exclusively in intrastate
  598  commerce do not qualify for the proration of tax.
  599         3. The transmission or wheeling of electricity.
  600         Section 16. The Office of Program Policy Analysis and
  601  Government Accountability shall complete a report reviewing the
  602  taxation of natural gas fuel used to power motor vehicles under
  603  chapters 206 and 212, Florida Statutes. The report must, at a
  604  minimum: evaluate growth trends in the use of natural gas fuel;
  605  survey how other states tax natural gas fuel and the energy
  606  content related to compressed natural gas, liquefied natural
  607  gas, and liquefied petroleum gas, and incentives provided to
  608  consumers of such fuels; and survey consumers and suppliers of
  609  natural gas fuel. The report shall be submitted to the President
  610  of the Senate and the Speaker of the House of Representatives by
  611  December 1, 2017.
  612         Section 17. Natural gas fuel fleet vehicle rebate program.—
  613         (1) CREATION AND PURPOSE OF PROGRAM.—Subject to specific
  614  appropriation, there is created within the Department of
  615  Agriculture and Consumer Services a natural gas fuel fleet
  616  vehicle rebate program. The purpose of this program is to help
  617  reduce transportation costs in this state and encourage freight
  618  mobility investments that contribute to the economic growth of
  619  the state.
  620         (2) DEFINITIONS.—For purposes of this section, the term:
  621         (a) “Conversion costs” means the excess cost associated
  622  with retrofitting a diesel or gasoline powered motor vehicle to
  623  a natural gas fuel powered motor vehicle.
  624         (b) “Department” means the Department of Agriculture and
  625  Consumer Services.
  626         (c) “Eligible costs” means the cost of conversion or the
  627  incremental cost incurred by an applicant in connection with an
  628  investment in the conversion or the purchase or lease, for at
  629  least a 5-year period, of a natural gas fleet vehicle placed
  630  into service on or after July 1, 2013. The term does not include
  631  costs for project development, fueling stations, or other
  632  fueling infrastructure.
  633         (d) “Fleet vehicles” means three or more motor vehicles
  634  registered in this state and used for commercial business or
  635  governmental purposes.
  636         (e) “Incremental costs” means the excess costs associated
  637  with the purchase or lease a natural gas fuel motor vehicle as
  638  compared to an equivalent diesel- or gasoline-powered motor
  639  vehicle.
  640         (f) “Natural gas fuel” means any liquefied petroleum gas
  641  product, compressed natural gas product, or combination thereof
  642  used in a motor vehicle as defined in s. 206.01(23). This term
  643  includes, but is not limited to, all forms of fuel commonly or
  644  commercially known or sold as natural gasoline, butane gas,
  645  propane gas, or any other form of liquefied petroleum gas,
  646  compressed natural gas, or liquefied natural gas. This term does
  647  not include natural gas or liquefied petroleum placed in a
  648  separate tank of a motor vehicle for cooking, heating, water
  649  heating, or electric generation.
  650         (3) NATURAL GAS FUEL FLEET VEHICLE REBATE.—The department
  651  shall award rebates for eligible costs as defined in this
  652  section. Forty percent of the annual allocation shall be
  653  reserved for governmental applicants, with the remaining funds
  654  allocated for commercial applicants. A rebate may not exceed 50
  655  percent of the eligible costs of a natural gas fuel fleet
  656  vehicle with a dedicated or bi-fuel natural gas fuel operating
  657  system placed into service on or after July 1, 2013. An
  658  applicant is eligible to receive a maximum rebate of $25,000 per
  659  vehicle up to a total of $250,000 per fiscal year. All natural
  660  gas fuel fleet vehicles eligible for the rebate must comply with
  661  applicable United States Environmental Protection Agency
  662  emission standards.
  663         (4) APPLICATION PROCESS.—
  664         (a) An applicant seeking to obtain a rebate shall submit an
  665  application to the department by a specified date as established
  666  by department rule. The application shall require a complete
  667  description of all eligible costs, proof of purchase or lease of
  668  the vehicle for which the applicant is seeking a rebate, a copy
  669  of the vehicle registration certificate, a description of the
  670  total rebate sought by the applicant, and any other information
  671  deemed necessary by the department. The application form adopted
  672  by department rule must include an affidavit from the applicant
  673  certifying that all information contained in the application is
  674  true and correct.
  675         (b) The department shall determine the rebate eligibility
  676  of each applicant in accordance with the requirements of this
  677  section and department rule. The total amount of rebates
  678  allocated to certified applicants may not exceed the amount
  679  appropriated for the program in the General Appropriations Act.
  680  Rebates shall be allocated to eligible applicants on a first
  681  come, first-served basis, determined by the date the application
  682  is received, until all appropriated funds are expended or the
  683  program ends, whichever comes first. Incomplete applications
  684  submitted to the department will not be accepted and do not
  685  secure a place in the first-come, first-served application
  686  process.
  687         (5) RULES.—The department shall adopt rules to implement
  688  and administer this section by December 31, 2013, including
  689  rules relating to the forms required to claim a rebate under
  690  this section, the required documentation and basis for
  691  establishing eligibility for a rebate, procedures and guidelines
  692  for claiming a rebate, and the collection of economic impact
  693  data from applicants.
  694         (6) PUBLICATION.—The department shall determine and publish
  695  on its website on an ongoing basis the amount of available
  696  funding for rebates remaining in each fiscal year.
  697         (7) ANNUAL ASSESSMENT.—By October 1, 2014, and each year
  698  thereafter that the program is funded, the department shall
  699  provide an annual assessment of the use of the rebate program
  700  during the previous fiscal year to the Governor, the President
  701  of the Senate, the Speaker of the House of Representatives, and
  702  the Office of Program Policy Analysis and Government
  703  Accountability. The assessment shall include, at a minimum, the
  704  following information:
  705         (a) The name of each applicant awarded a rebate under this
  706  section;
  707         (b) The amount of the rebates awarded to each applicant;
  708         (c) The type and description of each eligible vehicle for
  709  which each applicant applied for a rebate; and
  710         (d) The aggregate amount of funding awarded for all
  711  applicants claiming rebates under this section.
  712         (8) REPORT.—By January 31, 2016, the Office of Program
  713  Policy Analysis and Government Accountability shall release a
  714  report reviewing the rebate program to the Governor, the
  715  President of the Senate, and the Speaker of the House of
  716  Representatives. The review shall include an analysis of the
  717  economic benefits resulting to the state from the program.
  718         (9) ANNUAL FUNDING.—Annual funding for the natural gas fuel
  719  fleet vehicle rebate program is subject to legislative
  720  appropriation.
  721         (10) EFFECTIVE DATE.—This section shall take effect July 1,
  722  2013.
  723         Section 18. Except as otherwise expressly provided in this
  724  act and except for this section, which shall take effect July 1,
  725  2013, this act shall take effect January 1, 2014.