HB 7217

1
A bill to be entitled
2An act relating to energy incentives and initiatives;
3amending s. 377.601, F.S.; revising legislative intent
4relating to the state's energy policy; creating s. 366.90,
5F.S.; providing legislative intent relating to renewable
6energy production of electricity; amending s. 366.92,
7F.S.; deleting legislative intent provisions relating to
8the state's renewable energy policy; deleting and revising
9definitions; deleting provisions for the renewable
10portfolio standard and renewable energy credits; providing
11a mechanism for providers to recover costs to produce or
12purchase renewable energy under certain conditions;
13exempting renewable energy projects for which cost
14recovery is provided under the mechanism from requirements
15for a determination of need; requiring providers to
16include specified information relating to renewable energy
17development in reports to the Public Service Commission;
18amending s. 403.503, F.S.; revising the definition of the
19term "electrical power plant" for purposes of the Florida
20Electrical Power Plant Siting Act; providing for a type
21two transfer of the Florida Energy and Climate Commission
22within the Executive Office of the Governor to the
23Department of Agriculture and Consumer Services; providing
24for a type two transfer of the low-income home energy
25assistance program and the weatherization assistance
26program within the Department of Community Affairs to the
27Department of Agriculture and Consumer Services; amending
28ss. 163.03, 212.05, 213.053, 220.192, 288.1089, 288.9607,
29366.82, 377.6015, 377.602, 377.603, 377.604, 377.605,
30377.606, 377.608, 377.701, 377.703, 377.801, 377.802,
31377.803, 377.804, 377.807, 377.808, 377.809, 403.44,
32409.508, 409.509, 570.954, and 1004.648, F.S.; conforming
33provisions to changes made by the act; amending s. 212.08,
34F.S.; removing an obsolete provision exempting renewable
35energy technologies from the tax on equipment, machinery,
36and other materials; amending s. 570.074, F.S.; providing
37for the creation of the Office of Energy and Water within
38the Department of Agriculture and Consumer Services;
39repealing s. 366.85, F.S., relating to the consumer
40conciliatory conference responsibilities of the Division
41of Consumer Services of the Department of Agriculture and
42Consumer Services; repealing s. 377.806, F.S., relating to
43the Solar Energy System Incentives Program; repealing s.
44526.207, F.S., relating to studies and reports on the
45life-cycle greenhouse gas emissions associated with
46renewable fuels; providing an effective date.
47
48Be It Enacted by the Legislature of the State of Florida:
49
50     Section 1.  Section 377.601, Florida Statutes, is amended
51to read:
52     377.601  Legislative intent.-
53     (1)  The purpose of the state's energy policy is to ensure
54an affordable, adequate, and reliable supply of energy for the
55state in a manner that promotes the health and welfare of the
56public, promotes sustainable economic growth, and minimizes and
57mitigates any adverse impacts. The Legislature intends that
58governance of the state's energy policy be efficiently directed
59toward achieving this purpose. The Legislature finds that the
60state's energy security can be increased by lessening dependence
61on foreign oil; that the impacts of global climate change can be
62reduced through the reduction of greenhouse gas emissions; and
63that the implementation of alternative energy technologies can
64be a source of new jobs and employment opportunities for many
65Floridians. The Legislature further finds that the state is
66positioned at the front line against potential impacts of global
67climate change. Human and economic costs of those impacts can be
68averted by global actions and, where necessary, adapted to by a
69concerted effort to make Florida's communities more resilient
70and less vulnerable to these impacts. In focusing the
71government's policy and efforts to benefit and protect our
72state, its citizens, and its resources, the Legislature believes
73that a single government entity with a specific focus on energy
74and climate change is both desirable and advantageous. Further,
75the Legislature finds that energy infrastructure provides the
76foundation for secure and reliable access to the energy supplies
77and services on which Florida depends. Therefore, there is
78significant value to Florida consumers that comes from
79investment in Florida's energy infrastructure that increases
80system reliability, enhances energy independence and
81diversification, stabilizes energy costs, and reduces greenhouse
82gas emissions.
83     (2)  In furtherance of this purpose, the state's energy
84policy shall be implemented through effective, efficient, and
85reliable governance and shall be guided by the following goals
86in order of their priority:
87     (a)  Ensuring an affordable energy supply.
88     (b)  Ensuring adequate energy supply and capacity.
89     (c)  Ensuring a secure and reliable energy supply.
90     (d)  Minimizing energy cost volatility.
91     (e)  Minimizing the negative impacts of energy production
92on the state's environment, social fabric, and public health and
93welfare.
94     (f)  Maximizing economic synergies for the state associated
95with its energy policy.
96     (g)  Reducing the net export of energy expenditures.
97     (3)  It is further the policy of the state of Florida to:
98     (a)  Develop and promote the effective use of energy in the
99state, discourage all forms of energy waste, and recognize and
100address the potential of global climate change wherever
101possible.
102     (b)  Play a leading role in developing and instituting
103energy management programs aimed at promoting energy
104conservation, energy security, and the reduction of greenhouse
105gas emissions.
106     (c)  Include energy considerations in all state, regional,
107and local planning.
108     (d)  Utilize and manage effectively energy resources used
109within state agencies.
110     (e)  Encourage local governments to include energy
111considerations in all planning and to support their work in
112promoting energy management programs.
113     (f)  Include the full participation of citizens in the
114development and implementation of energy programs.
115     (g)  Consider in its decisions the energy needs of each
116economic sector, including residential, industrial, commercial,
117agricultural, and governmental uses, and reduce those needs
118whenever possible.
119     (h)  Promote energy education and the public dissemination
120of information on energy and its environmental, economic, and
121social impact.
122     (i)  Encourage the research, development, demonstration,
123and application of alternative energy resources, particularly
124renewable energy resources.
125     (j)  Consider, in its decisionmaking, the social, economic,
126and environmental impacts of energy-related activities,
127including the whole-life-cycle impacts of any potential energy
128use choices, so that detrimental effects of these activities are
129understood and minimized.
130     (k)  Develop and maintain energy emergency preparedness
131plans to minimize the effects of an energy shortage within
132Florida.
133     Section 2.  Section 366.90, Florida Statutes, is created to
134read:
135     366.90  Renewable energy for electricity production.-In
136furtherance of the energy policy goals established in s.
137377.601, the Legislature finds that it is in the public interest
138to promote the development of renewable energy resources in the
139state, for purposes of electricity production, through the
140mechanisms established in ss. 366.91 and 366.92. The Legislature
141further finds that renewable energy resources have the potential
142to help diversify fuel types to alleviate the state's growing
143dependence on natural gas and other fossil fuels for the
144production of electricity, minimize the volatility of fuel
145costs, encourage investment within the state, improve
146environmental conditions, and make the state a leader in new and
147innovative technologies.
148     Section 3.  Section 366.92, Florida Statutes, is amended to
149read:
150     366.92  Florida renewable energy policy.-
151     (1)  It is the intent of the Legislature to promote the
152development of renewable energy; protect the economic viability
153of Florida's existing renewable energy facilities; diversify the
154types of fuel used to generate electricity in Florida; lessen
155Florida's dependence on natural gas and fuel oil for the
156production of electricity; minimize the volatility of fuel
157costs; encourage investment within the state; improve
158environmental conditions; and, at the same time, minimize the
159costs of power supply to electric utilities and their customers.
160     (1)(2)  As used in this section, the term:
161     (a)  "Florida renewable energy resources" means renewable
162energy, as defined in s. 377.803, that is produced in Florida.
163     (a)(b)  "Provider" means a "utility" as defined in s.
164366.8255(1)(a).
165     (b)(c)  "Renewable energy" means renewable energy as
166defined in s. 366.91(2)(d) that is produced in the state.
167     (d)  "Renewable energy credit" or "REC" means a product
168that represents the unbundled, separable, renewable attribute of
169renewable energy produced in Florida and is equivalent to 1
170megawatt-hour of electricity generated by a source of renewable
171energy located in Florida.
172     (e)  "Renewable portfolio standard" or "RPS" means the
173minimum percentage of total annual retail electricity sales by a
174provider to consumers in Florida that shall be supplied by
175renewable energy produced in Florida.
176     (3)  The commission shall adopt rules for a renewable
177portfolio standard requiring each provider to supply renewable
178energy to its customers directly, by procuring, or through
179renewable energy credits. In developing the RPS rule, the
180commission shall consult the Department of Environmental
181Protection and the Florida Energy and Climate Commission. The
182rule shall not be implemented until ratified by the Legislature.
183The commission shall present a draft rule for legislative
184consideration by February 1, 2009.
185     (a)  In developing the rule, the commission shall evaluate
186the current and forecasted levelized cost in cents per kilowatt
187hour through 2020 and current and forecasted installed capacity
188in kilowatts for each renewable energy generation method through
1892020.
190     (b)  The commission's rule:
191     1.  Shall include methods of managing the cost of
192compliance with the renewable portfolio standard, whether
193through direct supply or procurement of renewable power or
194through the purchase of renewable energy credits. The commission
195shall have rulemaking authority for providing annual cost
196recovery and incentive-based adjustments to authorized rates of
197return on common equity to providers to incentivize renewable
198energy. Notwithstanding s. 366.91(3) and (4), upon the
199ratification of the rules developed pursuant to this subsection,
200the commission may approve projects and power sales agreements
201with renewable power producers and the sale of renewable energy
202credits needed to comply with the renewable portfolio standard.
203In the event of any conflict, this subparagraph shall supersede
204s. 366.91(3) and (4). However, nothing in this section shall
205alter the obligation of each public utility to continuously
206offer a purchase contract to producers of renewable energy.
207     2.  Shall provide for appropriate compliance measures and
208the conditions under which noncompliance shall be excused due to
209a determination by the commission that the supply of renewable
210energy or renewable energy credits was not adequate to satisfy
211the demand for such energy or that the cost of securing
212renewable energy or renewable energy credits was cost
213prohibitive.
214     3.  May provide added weight to energy provided by wind and
215solar photovoltaic over other forms of renewable energy, whether
216directly supplied or procured or indirectly obtained through the
217purchase of renewable energy credits.
218     4.  Shall determine an appropriate period of time for which
219renewable energy credits may be used for purposes of compliance
220with the renewable portfolio standard.
221     5.  Shall provide for monitoring of compliance with and
222enforcement of the requirements of this section.
223     6.  Shall ensure that energy credited toward compliance
224with the requirements of this section is not credited toward any
225other purpose.
226     7.  Shall include procedures to track and account for
227renewable energy credits, including ownership of renewable
228energy credits that are derived from a customer-owned renewable
229energy facility as a result of any action by a customer of an
230electric power supplier that is independent of a program
231sponsored by the electric power supplier.
232     8.  Shall provide for the conditions and options for the
233repeal or alteration of the rule in the event that new
234provisions of federal law supplant or conflict with the rule.
235     (c)  Beginning on April 1 of the year following final
236adoption of the commission's renewable portfolio standard rule,
237each provider shall submit a report to the commission describing
238the steps that have been taken in the previous year and the
239steps that will be taken in the future to add renewable energy
240to the provider's energy supply portfolio. The report shall
241state whether the provider was in compliance with the renewable
242portfolio standard during the previous year and how it will
243comply with the renewable portfolio standard in the upcoming
244year.
245     (2)(4)  Subject to the provisions of this subsection In
246order to demonstrate the feasibility and viability of clean
247energy systems, the commission shall provide for full cost
248recovery under the environmental cost-recovery clause of all
249reasonable and prudent costs incurred by a provider to produce
250or purchase for renewable energy for purposes of supplying
251electrical energy to its retail customers projects that are zero
252greenhouse gas emitting at the point of generation, up to a
253total of 110 megawatts statewide, and for which the provider has
254secured necessary land, zoning permits, and transmission rights
255within the state. Such costs shall be deemed reasonable and
256prudent for purposes of cost recovery so long as the provider
257has used reasonable and customary industry practices in the
258design, procurement, and construction of the project in a cost-
259effective manner appropriate to the location of the facility.
260The provider shall report to the commission as part of the cost-
261recovery proceedings the construction costs, in-service costs,
262operating and maintenance costs, hourly energy production of the
263renewable energy project, and any other information deemed
264relevant by the commission. Any provider constructing a clean
265energy facility pursuant to this section shall file for cost
266recovery no later than July 1, 2009.
267     (a)  A provider may petition the commission no later than
268July 1, 2015, requesting recovery of costs over the useful life
269of a project to produce renewable energy or over the term of a
270contract to purchase renewable energy, or a combination of both,
271subject to the cost cap in paragraph (c). The provider has sole
272discretion to determine the type and technology of the renewable
273energy resource that it intends to use. However, at least 20
274percent of the total capacity for which a provider is permitted
275to recover costs in any calendar year under this subsection must
276be produced or purchased from renewable energy resources other
277than solar energy. A provider must file with the commission, no
278later than when the provider files a petition for cost recovery
279under this subsection, a schedule of planned production and
280purchases for the calendar year in which cost recovery is
281requested. If any portion of the capacity required from nonsolar
282renewable energy resources is committed but, for reasons found
283by the commission to be beyond the control of the provider, is
284not available during the calendar year for which cost recovery
285is requested, the provider may continue to recover costs to
286produce or purchase renewable energy from solar energy resources
287if the provider continues in good faith to pursue the production
288or purchase of renewable energy from nonsolar resources. The
289provider has sole discretion to determine whether to construct
290new renewable energy generating facilities, convert existing
291fossil fuel generating facilities to renewable energy generating
292facilities, or contract for the purchase of renewable energy
293from third-party generating facilities in the state.
294     (b)  In addition to the full cost recovery for such
295renewable energy projects, a return on equity of 50 basis points
296above the provider's last authorized rate of return on equity
297approved by the commission for energy projects shall be approved
298and provided for a project to produce renewable energy if a
299majority of the costs of the energy-producing components
300incorporated into such projects are manufactured in the state.
301     (c)  For the production or purchase of renewable energy
302under this subsection, a provider may annually recover costs up
303to and in excess of its full avoided cost, as defined in s.
304366.051 and approved by the commission, if the recovery of costs
305in excess of the provider's full avoided cost does not exceed,
306on an annual basis, 2 percent of the provider's total revenues
307from the retail sale of electricity for calendar year 2010. For
308purposes of cost recovery under this subsection, costs shall be
309computed using a methodology that reflects the actual annual
310revenue requirements contracted for payment for the purchase of
311renewable capacity and energy from a nonutility renewable
312generator or the revenue requirements using conventional
313regulatory accounting for a utility-owned renewable generator.
314     (d)  Cost recovery under this subsection is limited to new
315construction or conversion projects for which construction is
316commenced on or after July 1, 2011, and to purchases made on or
317after that date. All renewable energy projects for which costs
318are approved by the commission for recovery through the
319environmental cost recovery clause before July 1, 2011, are not
320subject to or included in the calculation of the cost cap. At
321least 5 percent of the total costs of solar generation for which
322a provider is permitted recovery in any calendar year under this
323subsection shall be dedicated to the provider's demand-side
324renewable energy system incentive program approved by the
325commission pursuant to s. 366.82.
326     (e)  The costs incurred by a provider to produce or
327purchase renewable energy under this subsection are deemed to be
328prudent for purposes of cost recovery if the provider
329demonstrates to the commission that the project is the most
330cost-effective alternative for the type of renewable energy
331resource selected by the utility and that it has used reasonable
332and customary industry practices in the design, procurement, and
333construction of the project.
334     (f)  Subject to the cost cap in paragraph (c), the
335commission shall allow a provider to recover the costs
336associated with the production or purchase of renewable energy
337under this subsection as follows:
338     1.  For new renewable energy generating facilities, the
339commission shall allow recovery of reasonable and prudent costs,
340including, but not limited to, the siting, licensing,
341engineering, design, permitting, construction, operation, and
342maintenance of such facilities, including any applicable taxes
343and a return based on the provider's last authorized rate of
344return.
345     2.  For conversion of existing fossil fuel generating
346facilities to renewable energy generating facilities, the
347commission shall allow recovery of reasonable and prudent
348conversion costs, including the costs of retirement of the
349fossil fuel plant that exceed any amounts accrued by the
350provider for such purposes through rates previously set by the
351commission.
352     3.  For purchase of renewable energy from third-party
353generating facilities in the state, the commission shall allow
354recovery of reasonable and prudent costs associated with the
355purchase.
356     (g)  In a proceeding to recover costs incurred under this
357subsection, a provider must provide the commission all cost
358information, hourly energy production information, and other
359information deemed relevant by the commission with respect to
360each project.
361     (h)  When a provider purchases renewable energy under this
362subsection at a cost in excess of its full avoided cost, the
363seller must surrender to the provider all renewable attributes
364of the renewable energy purchased.
365     (i)  Revenues derived from any renewable energy credit,
366carbon credit, or other mechanism that attributes value to the
367production of renewable energy, either existing or hereafter
368devised, received by a provider by virtue of the production or
369purchase of renewable energy for which cost recovery is approved
370under this subsection shall be shared with the provider's
371ratepayers such that the ratepayers are credited at least 75
372percent of such revenues. However, the provider is not required
373to share with its ratepayers any value derived from credits
374received by the provider by virtue of the purchase of renewable
375energy from a third-party generating facility in the state that
376does not exceed 2 megawatts in capacity and that is not a
377regulated utility or its unregulated affiliate.
378     (j)  Section 403.519 does not apply to a renewable energy
379generating facility constructed or converted from an existing
380fossil fuel generating facility under this subsection, and the
381commission is not required to submit a report for such a project
382under s. 403.507(4)(a).
383     (3)  Each provider shall, in its 10-year site plan
384submitted to the commission pursuant to s. 186.801, provide the
385following information:
386     (a)  The amount of renewable energy resources the provider
387produces or purchases.
388     (b)  The amount of renewable energy resources the provider
389plans to produce or purchase over the 10-year planning horizon
390and the means by which such production or purchases will be
391achieved.
392     (c)  A statement indicating how the production and purchase
393of renewable energy resources impact the provider's present and
394future capacity and energy needs.
395     (4)(5)  Each municipal electric utility and rural electric
396cooperative shall develop standards for the promotion,
397encouragement, and expansion of the use of renewable energy
398resources and energy conservation and efficiency measures. On or
399before April 1, 2009, and annually thereafter, each municipal
400electric utility and electric cooperative shall submit to the
401commission a report that identifies such standards.
402     (5)(6)  Nothing in This section and any action taken under
403this section may not shall be construed to impede or impair the
404terms and conditions of, or serve as a basis for renegotiating
405or repricing, an existing contract contracts.
406     (6)(7)  The commission may adopt rules to administer and
407implement the provisions of this section.
408     Section 4.  Subsection (14) of section 403.503, Florida
409Statutes, is amended to read:
410     403.503  Definitions relating to Florida Electrical Power
411Plant Siting Act.-As used in this act:
412     (14)  "Electrical power plant" means, for the purpose of
413certification, any steam or solar electrical generating facility
414using any process or fuel, including nuclear materials, except
415that this term does not include any steam or solar electrical
416generating facility of less than 75 megawatts in capacity or any
417solar electrical generating facility of any sized capacity
418unless the applicant for such a facility elects to apply for
419certification under this act. This term also includes the site;
420all associated facilities that will be owned by the applicant
421that are physically connected to the site; all associated
422facilities that are indirectly connected to the site by other
423proposed associated facilities that will be owned by the
424applicant; and associated transmission lines that will be owned
425by the applicant which connect the electrical power plant to an
426existing transmission network or rights-of-way to which the
427applicant intends to connect. At the applicant's option, this
428term may include any offsite associated facilities that will not
429be owned by the applicant; offsite associated facilities that
430are owned by the applicant but that are not directly connected
431to the site; any proposed terminal or intermediate substations
432or substation expansions connected to the associated
433transmission line; or new transmission lines, upgrades, or
434improvements of an existing transmission line on any portion of
435the applicant's electrical transmission system necessary to
436support the generation injected into the system from the
437proposed electrical power plant.
438     Section 5.  The powers, duties, functions, records,
439personnel, property, pending issues and existing contracts,
440administrative authority, administrative rules, and unexpended
441balances of appropriations, allocations, and other funds of the
442Florida Energy and Climate Commission within the Executive
443Office of the Governor are transferred by a type two transfer,
444as defined in s. 20.06(2), Florida Statutes, to the Department
445of Agriculture and Consumer Services.
446     Section 6.  The powers, duties, functions, records,
447personnel, property, pending issues and existing contracts,
448administrative authority, administrative rules, and unexpended
449balances of appropriations, allocations, and other funds of the
450low-income home energy assistance program, authorized under s.
451409.508, Florida Statutes, and the weatherization assistance
452program, authorized under ss. 409.509-409.5093, Florida
453Statutes, within the Department of Community Affairs, are
454transferred by a type two transfer, pursuant to s. 20.06(2),
455Florida Statutes, to the Department of Agriculture and Consumer
456Services.
457     Section 7.  Paragraph (e) of subsection (3) of section
458163.03, Florida Statutes, is amended to read:
459     163.03  Secretary of Community Affairs; powers and duties;
460function of Department of Community Affairs with respect to
461federal grant-in-aid programs.-
462     (3)  The department is authorized to adopt rules
463implementing the following grant programs, which rules shall be
464consistent with the laws, regulations, or guidelines governing
465the grant to the department:
466     (e)  Federal weatherization grant programs.
467     Section 8.  Paragraph (a) of subsection (1) of section
468212.05, Florida Statutes, is amended to read:
469     212.05  Sales, storage, use tax.-It is hereby declared to
470be the legislative intent that every person is exercising a
471taxable privilege who engages in the business of selling
472tangible personal property at retail in this state, including
473the business of making mail order sales, or who rents or
474furnishes any of the things or services taxable under this
475chapter, or who stores for use or consumption in this state any
476item or article of tangible personal property as defined herein
477and who leases or rents such property within the state.
478     (1)  For the exercise of such privilege, a tax is levied on
479each taxable transaction or incident, which tax is due and
480payable as follows:
481     (a)1.a.  At the rate of 6 percent of the sales price of
482each item or article of tangible personal property when sold at
483retail in this state, computed on each taxable sale for the
484purpose of remitting the amount of tax due the state, and
485including each and every retail sale.
486     b.  Each occasional or isolated sale of an aircraft, boat,
487mobile home, or motor vehicle of a class or type which is
488required to be registered, licensed, titled, or documented in
489this state or by the United States Government shall be subject
490to tax at the rate provided in this paragraph. The department
491shall by rule adopt any nationally recognized publication for
492valuation of used motor vehicles as the reference price list for
493any used motor vehicle which is required to be licensed pursuant
494to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
495party to an occasional or isolated sale of such a vehicle
496reports to the tax collector a sales price which is less than 80
497percent of the average loan price for the specified model and
498year of such vehicle as listed in the most recent reference
499price list, the tax levied under this paragraph shall be
500computed by the department on such average loan price unless the
501parties to the sale have provided to the tax collector an
502affidavit signed by each party, or other substantial proof,
503stating the actual sales price. Any party to such sale who
504reports a sales price less than the actual sales price is guilty
505of a misdemeanor of the first degree, punishable as provided in
506s. 775.082 or s. 775.083. The department shall collect or
507attempt to collect from such party any delinquent sales taxes.
508In addition, such party shall pay any tax due and any penalty
509and interest assessed plus a penalty equal to twice the amount
510of the additional tax owed. Notwithstanding any other provision
511of law, the Department of Revenue may waive or compromise any
512penalty imposed pursuant to this subparagraph.
513     2.  This paragraph does not apply to the sale of a boat or
514aircraft by or through a registered dealer under this chapter to
515a purchaser who, at the time of taking delivery, is a
516nonresident of this state, does not make his or her permanent
517place of abode in this state, and is not engaged in carrying on
518in this state any employment, trade, business, or profession in
519which the boat or aircraft will be used in this state, or is a
520corporation none of the officers or directors of which is a
521resident of, or makes his or her permanent place of abode in,
522this state, or is a noncorporate entity that has no individual
523vested with authority to participate in the management,
524direction, or control of the entity's affairs who is a resident
525of, or makes his or her permanent abode in, this state. For
526purposes of this exemption, either a registered dealer acting on
527his or her own behalf as seller, a registered dealer acting as
528broker on behalf of a seller, or a registered dealer acting as
529broker on behalf of the purchaser may be deemed to be the
530selling dealer. This exemption shall not be allowed unless:
531     a.  The purchaser removes a qualifying boat, as described
532in sub-subparagraph f., from the state within 90 days after the
533date of purchase or extension, or the purchaser removes a
534nonqualifying boat or an aircraft from this state within 10 days
535after the date of purchase or, when the boat or aircraft is
536repaired or altered, within 20 days after completion of the
537repairs or alterations;
538     b.  The purchaser, within 30 days from the date of
539departure, shall provide the department with written proof that
540the purchaser licensed, registered, titled, or documented the
541boat or aircraft outside the state. If such written proof is
542unavailable, within 30 days the purchaser shall provide proof
543that the purchaser applied for such license, title,
544registration, or documentation. The purchaser shall forward to
545the department proof of title, license, registration, or
546documentation upon receipt;
547     c.  The purchaser, within 10 days of removing the boat or
548aircraft from Florida, shall furnish the department with proof
549of removal in the form of receipts for fuel, dockage, slippage,
550tie-down, or hangaring from outside of Florida. The information
551so provided must clearly and specifically identify the boat or
552aircraft;
553     d.  The selling dealer, within 5 days of the date of sale,
554shall provide to the department a copy of the sales invoice,
555closing statement, bills of sale, and the original affidavit
556signed by the purchaser attesting that he or she has read the
557provisions of this section;
558     e.  The seller makes a copy of the affidavit a part of his
559or her record for as long as required by s. 213.35; and
560     f.  Unless the nonresident purchaser of a boat of 5 net
561tons of admeasurement or larger intends to remove the boat from
562this state within 10 days after the date of purchase or when the
563boat is repaired or altered, within 20 days after completion of
564the repairs or alterations, the nonresident purchaser shall
565apply to the selling dealer for a decal which authorizes 90 days
566after the date of purchase for removal of the boat. The
567nonresident purchaser of a qualifying boat may apply to the
568selling dealer within 60 days after the date of purchase for an
569extension decal that authorizes the boat to remain in this state
570for an additional 90 days, but not more than a total of 180
571days, before the nonresident purchaser is required to pay the
572tax imposed by this chapter. The department is authorized to
573issue decals in advance to dealers. The number of decals issued
574in advance to a dealer shall be consistent with the volume of
575the dealer's past sales of boats which qualify under this sub-
576subparagraph. The selling dealer or his or her agent shall mark
577and affix the decals to qualifying boats in the manner
578prescribed by the department, prior to delivery of the boat.
579     (I)  The department is hereby authorized to charge dealers
580a fee sufficient to recover the costs of decals issued, except
581the extension decal shall cost $425.
582     (II)  The proceeds from the sale of decals will be
583deposited into the administrative trust fund.
584     (III)  Decals shall display information to identify the
585boat as a qualifying boat under this sub-subparagraph,
586including, but not limited to, the decal's date of expiration.
587     (IV)  The department is authorized to require dealers who
588purchase decals to file reports with the department and may
589prescribe all necessary records by rule. All such records are
590subject to inspection by the department.
591     (V)  Any dealer or his or her agent who issues a decal
592falsely, fails to affix a decal, mismarks the expiration date of
593a decal, or fails to properly account for decals will be
594considered prima facie to have committed a fraudulent act to
595evade the tax and will be liable for payment of the tax plus a
596mandatory penalty of 200 percent of the tax, and shall be liable
597for fine and punishment as provided by law for a conviction of a
598misdemeanor of the first degree, as provided in s. 775.082 or s.
599775.083.
600     (VI)  Any nonresident purchaser of a boat who removes a
601decal prior to permanently removing the boat from the state, or
602defaces, changes, modifies, or alters a decal in a manner
603affecting its expiration date prior to its expiration, or who
604causes or allows the same to be done by another, will be
605considered prima facie to have committed a fraudulent act to
606evade the tax and will be liable for payment of the tax plus a
607mandatory penalty of 200 percent of the tax, and shall be liable
608for fine and punishment as provided by law for a conviction of a
609misdemeanor of the first degree, as provided in s. 775.082 or s.
610775.083.
611     (VII)  The department is authorized to adopt rules
612necessary to administer and enforce this subparagraph and to
613publish the necessary forms and instructions.
614     (VIII)  The department is hereby authorized to adopt
615emergency rules pursuant to s. 120.54(4) to administer and
616enforce the provisions of this subparagraph.
617
618If the purchaser fails to remove the qualifying boat from this
619state within the maximum 180 days after purchase or a
620nonqualifying boat or an aircraft from this state within 10 days
621after purchase or, when the boat or aircraft is repaired or
622altered, within 20 days after completion of such repairs or
623alterations, or permits the boat or aircraft to return to this
624state within 6 months from the date of departure, except as
625provided in s. 212.08(7)(fff)(ggg), or if the purchaser fails to
626furnish the department with any of the documentation required by
627this subparagraph within the prescribed time period, the
628purchaser shall be liable for use tax on the cost price of the
629boat or aircraft and, in addition thereto, payment of a penalty
630to the Department of Revenue equal to the tax payable. This
631penalty shall be in lieu of the penalty imposed by s. 212.12(2).
632The maximum 180-day period following the sale of a qualifying
633boat tax-exempt to a nonresident may not be tolled for any
634reason.
635     Section 9.  Paragraph (y) of subsection (8) of section
636213.053, Florida Statutes, is amended to read:
637     213.053  Confidentiality and information sharing.-
638     (8)  Notwithstanding any other provision of this section,
639the department may provide:
640     (y)  Information relative to s. ss. 212.08(7)(ccc) and
641220.192 to the Department of Agriculture and Consumer Services
642Florida Energy and Climate Commission for use in the conduct of
643its official business.
644
645Disclosure of information under this subsection shall be
646pursuant to a written agreement between the executive director
647and the agency. Such agencies, governmental or nongovernmental,
648shall be bound by the same requirements of confidentiality as
649the Department of Revenue. Breach of confidentiality is a
650misdemeanor of the first degree, punishable as provided by s.
651775.082 or s. 775.083.
652     Section 10.  Section 220.192, Florida Statutes, is amended
653to read:
654     220.192  Renewable energy technologies investment tax
655credit.-
656     (1)  DEFINITIONS.-For purposes of this section, the term:
657     (a)  "Biodiesel" means the mono-alkyl esters of long-chain
658fatty acids derived from plant or animal matter for use as a
659source of energy and meeting the specifications for biodiesel
660and biodiesel blends with petroleum products as adopted by the
661Department of Agriculture and Consumer Services. Biodiesel may
662refer to biodiesel blends designated BXX, where XX represents
663the volume percentage of biodiesel fuel in the blend biodiesel
664as defined in s. 212.08(7)(ccc).
665     (b)  "Corporation" includes a general partnership, limited
666partnership, limited liability company, unincorporated business,
667or other business entity, including entities taxed as
668partnerships for federal income tax purposes.
669     (c)  "Eligible costs" means:
670     1.  Seventy-five percent of all capital costs, operation
671and maintenance costs, and research and development costs
672incurred between July 1, 2006, and June 30, 2010, up to a limit
673of $3 million per state fiscal year for all taxpayers, in
674connection with an investment in hydrogen-powered vehicles and
675hydrogen vehicle fueling stations in the state, including, but
676not limited to, the costs of constructing, installing, and
677equipping such technologies in the state.
678     2.  Seventy-five percent of all capital costs, operation
679and maintenance costs, and research and development costs
680incurred between July 1, 2006, and June 30, 2010, up to a limit
681of $1.5 million per state fiscal year for all taxpayers, and
682limited to a maximum of $12,000 per fuel cell, in connection
683with an investment in commercial stationary hydrogen fuel cells
684in the state, including, but not limited to, the costs of
685constructing, installing, and equipping such technologies in the
686state.
687     3.  Seventy-five percent of all capital costs, operation
688and maintenance costs, and research and development costs
689incurred between July 1, 2006, and June 30, 2010, up to a limit
690of $6.5 million per state fiscal year for all taxpayers, in
691connection with an investment in the production, storage, and
692distribution of biodiesel (B10-B100) and ethanol (E10-E100) in
693the state, including the costs of constructing, installing, and
694equipping such technologies in the state. Gasoline fueling
695station pump retrofits for ethanol (E10-E100) distribution
696qualify as an eligible cost under this subparagraph.
697     (d)  "Ethanol" means an anhydrous denatured alcohol
698produced by the conversion of carbohydrates meeting the
699specifications for fuel ethanol and fuel ethanol blends with
700petroleum products as adopted by the Department of Agriculture
701and Consumer Services. Ethanol may refer to fuel ethanol blends
702designated EXX, where XX represents the volume percentage of
703fuel ethanol in the blend ethanol as defined in s.
704212.08(7)(ccc).
705     (e)  "Hydrogen fuel cell" means equipment using hydrogen or
706a hydrogen-rich fuel in an electrochemical process to generate
707energy, electricity, or the transfer of heat hydrogen fuel cell
708as defined in s. 212.08(7)(ccc).
709     (f)  "Taxpayer" includes a corporation as defined in
710paragraph (b) or s. 220.03.
711     (2)  TAX CREDIT.-For tax years beginning on or after
712January 1, 2007, a credit against the tax imposed by this
713chapter shall be granted in an amount equal to the eligible
714costs. Credits may be used in tax years beginning January 1,
7152007, and ending December 31, 2010, after which the credit shall
716expire. If the credit is not fully used in any one tax year
717because of insufficient tax liability on the part of the
718corporation, the unused amount may be carried forward and used
719in tax years beginning January 1, 2007, and ending December 31,
7202012, after which the credit carryover expires and may not be
721used. A taxpayer that files a consolidated return in this state
722as a member of an affiliated group under s. 220.131(1) may be
723allowed the credit on a consolidated return basis up to the
724amount of tax imposed upon the consolidated group. Any eligible
725cost for which a credit is claimed and which is deducted or
726otherwise reduces federal taxable income shall be added back in
727computing adjusted federal income under s. 220.13.
728     (3)  CORPORATE APPLICATION PROCESS.-Any corporation wishing
729to obtain tax credits available under this section must submit
730to the Department of Agriculture and Consumer Services Florida
731Energy and Climate Commission an application for tax credit that
732includes a complete description of all eligible costs for which
733the corporation is seeking a credit and a description of the
734total amount of credits sought. The Department of Agriculture
735and Consumer Services Florida Energy and Climate Commission
736shall make a determination on the eligibility of the applicant
737for the credits sought and certify the determination to the
738applicant and the Department of Revenue. The corporation must
739attach the Department of Agriculture and Consumer Services'
740Florida Energy and Climate Commission's certification to the tax
741return on which the credit is claimed. The Department of
742Agriculture and Consumer Services Florida Energy and Climate
743Commission shall be responsible for ensuring that the corporate
744income tax credits granted in each fiscal year do not exceed the
745limits provided for in this section. The Department of
746Agriculture and Consumer Services Florida Energy and Climate
747Commission is authorized to adopt the necessary rules,
748guidelines, and application materials for the application
749process.
750     (4)  TAXPAYER APPLICATION PROCESS.-To claim a credit under
751this section, each taxpayer must apply to the Department of
752Agriculture and Consumer Services Florida Energy and Climate
753Commission for an allocation of each type of annual credit by
754the date established by the Department of Agriculture and
755Consumer Services Florida Energy and Climate Commission. The
756application form may be established by the Department of
757Agriculture and Consumer Services Florida Energy and Climate
758Commission. The form must include an affidavit from each
759taxpayer certifying that all information contained in the
760application, including all records of eligible costs claimed as
761the basis for the tax credit, are true and correct. Approval of
762the credits under this section shall be accomplished on a first-
763come, first-served basis, based upon the date complete
764applications are received by the Department of Agriculture and
765Consumer Services Florida Energy and Climate Commission. A
766taxpayer shall submit only one complete application based upon
767eligible costs incurred within a particular state fiscal year.
768Incomplete placeholder applications will not be accepted and
769will not secure a place in the first-come, first-served
770application line. If a taxpayer does not receive a tax credit
771allocation due to the exhaustion of the annual tax credit
772authorizations, then such taxpayer may reapply in the following
773year for those eligible costs and will have priority over other
774applicants for the allocation of credits.
775     (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
776CREDITS.-
777     (a)  In addition to its existing audit and investigation
778authority, the Department of Revenue may perform any additional
779financial and technical audits and investigations, including
780examining the accounts, books, and records of the tax credit
781applicant, which are necessary to verify the eligible costs
782included in the tax credit return and to ensure compliance with
783this section. The Department of Agriculture and Consumer
784Services Florida Energy and Climate Commission shall provide
785technical assistance when requested by the Department of Revenue
786on any technical audits or examinations performed pursuant to
787this section.
788     (b)  It is grounds for forfeiture of previously claimed and
789received tax credits if the Department of Revenue determines, as
790a result of an audit or examination or from information received
791from the Department of Agriculture and Consumer Services Florida
792Energy and Climate Commission, that a taxpayer received tax
793credits pursuant to this section to which the taxpayer was not
794entitled. The taxpayer is responsible for returning forfeited
795tax credits to the Department of Revenue, and such funds shall
796be paid into the General Revenue Fund of the state.
797     (c)  The Department of Agriculture and Consumer Services
798Florida Energy and Climate Commission may revoke or modify any
799written decision granting eligibility for tax credits under this
800section if it is discovered that the tax credit applicant
801submitted any false statement, representation, or certification
802in any application, record, report, plan, or other document
803filed in an attempt to receive tax credits under this section.
804The Department of Agriculture and Consumer Services Florida
805Energy and Climate Commission shall immediately notify the
806Department of Revenue of any revoked or modified orders
807affecting previously granted tax credits. Additionally, the
808taxpayer must notify the Department of Revenue of any change in
809its tax credit claimed.
810     (d)  The taxpayer shall file with the Department of Revenue
811an amended return or such other report as the Department of
812Revenue prescribes by rule and shall pay any required tax and
813interest within 60 days after the taxpayer receives notification
814from the Department of Agriculture and Consumer Services Florida
815Energy and Climate Commission that previously approved tax
816credits have been revoked or modified. If the revocation or
817modification order is contested, the taxpayer shall file an
818amended return or other report as provided in this paragraph
819within 60 days after a final order is issued after proceedings.
820     (e)  A notice of deficiency may be issued by the Department
821of Revenue at any time within 3 years after the taxpayer
822receives formal notification from the Department of Agriculture
823and Consumer Services Florida Energy and Climate Commission that
824previously approved tax credits have been revoked or modified.
825If a taxpayer fails to notify the Department of Revenue of any
826changes to its tax credit claimed, a notice of deficiency may be
827issued at any time.
828     (6)  TRANSFERABILITY OF CREDIT.-
829     (a)  For tax years beginning on or after January 1, 2009,
830any corporation or subsequent transferee allowed a tax credit
831under this section may transfer the credit, in whole or in part,
832to any taxpayer by written agreement without transferring any
833ownership interest in the property generating the credit or any
834interest in the entity owning such property. The transferee is
835entitled to apply the credits against the tax with the same
836effect as if the transferee had incurred the eligible costs.
837     (b)  To perfect the transfer, the transferor shall provide
838the Department of Revenue with a written transfer statement
839notifying the Department of Revenue of the transferor's intent
840to transfer the tax credits to the transferee; the date the
841transfer is effective; the transferee's name, address, and
842federal taxpayer identification number; the tax period; and the
843amount of tax credits to be transferred. The Department of
844Revenue shall, upon receipt of a transfer statement conforming
845to the requirements of this section, provide the transferee with
846a certificate reflecting the tax credit amounts transferred. A
847copy of the certificate must be attached to each tax return for
848which the transferee seeks to apply such tax credits.
849     (c)  A tax credit authorized under this section that is
850held by a corporation and not transferred under this subsection
851shall be passed through to the taxpayers designated as partners,
852members, or owners, respectively, in the manner agreed to by
853such persons regardless of whether such partners, members, or
854owners are allocated or allowed any portion of the federal
855energy tax credit for the eligible costs. A corporation that
856passes the credit through to a partner, member, or owner must
857comply with the notification requirements described in paragraph
858(b). The partner, member, or owner must attach a copy of the
859certificate to each tax return on which the partner, member, or
860owner claims any portion of the credit.
861     (7)  RULES.-The Department of Revenue shall have the
862authority to adopt rules pursuant to ss. 120.536(1) and 120.54
863to administer this section, including rules relating to:
864     (a)  The forms required to claim a tax credit under this
865section, the requirements and basis for establishing an
866entitlement to a credit, and the examination and audit
867procedures required to administer this section.
868     (b)  The implementation and administration of the
869provisions allowing a transfer of a tax credit, including rules
870prescribing forms, reporting requirements, and specific
871procedures, guidelines, and requirements necessary to transfer a
872tax credit.
873     (8)  PUBLICATION.-The Department of Agriculture and
874Consumer Services Florida Energy and Climate Commission shall
875determine and publish on a regular basis the amount of available
876tax credits remaining in each fiscal year.
877     Section 11.  Paragraphs (d) and (e) of subsection (2) and
878subsection (5) of section 288.1089, Florida Statutes, are
879amended to read:
880     288.1089  Innovation Incentive Program.-
881     (2)  As used in this section, the term:
882     (d)(e)  "Cumulative investment" means cumulative capital
883investment and all eligible capital costs, as defined in s.
884220.191.
885     (e)(d)  "Department" "Commission" means the Department of
886Agriculture and Consumer Services Florida Energy and Climate
887Commission.
888     (5)  Enterprise Florida, Inc., shall evaluate proposals for
889all three categories of innovation incentive awards and transmit
890recommendations for awards to the office. Before making its
891recommendations on alternative and renewable energy projects,
892Enterprise Florida, Inc., shall solicit comments and
893recommendations from the department Florida Energy and Climate
894Commission. For each project, the evaluation and recommendation
895to the office must include, but need not be limited to:
896     (a)  A description of the project, its required facilities,
897and the associated product, service, or research and development
898associated with the project.
899     (b)  The percentage of match provided for the project.
900     (c)  The number of full-time equivalent jobs that will be
901created by the project, the total estimated average annual wages
902of such jobs, and the types of business activities and jobs
903likely to be stimulated by the project.
904     (d)  The cumulative investment to be dedicated to the
905project within 5 years and the total investment expected in the
906project if more than 5 years.
907     (e)  The projected economic and fiscal impacts on the local
908and state economies relative to investment.
909     (f)  A statement of any special impacts the project is
910expected to stimulate in a particular business sector in the
911state or regional economy or in the state's universities and
912community colleges.
913     (g)  A statement of any anticipated or proposed
914relationships with state universities.
915     (h)  A statement of the role the incentive is expected to
916play in the decision of the applicant to locate or expand in
917this state.
918     (i)  A recommendation and explanation of the amount of the
919award needed to cause the applicant to expand or locate in this
920state.
921     (j)  A discussion of the efforts and commitments made by
922the local community in which the project is to be located to
923induce the applicant's location or expansion, taking into
924consideration local resources and abilities.
925     (k)  A recommendation for specific performance criteria the
926applicant would be expected to achieve in order to receive
927payments from the fund and penalties or sanctions for failure to
928meet or maintain performance conditions.
929     (l)  Additional evaluative criteria for a research and
930development facility project, including:
931     1.  A description of the extent to which the project has
932the potential to serve as catalyst for an emerging or evolving
933cluster.
934     2.  A description of the extent to which the project has or
935could have a long-term collaborative research and development
936relationship with one or more universities or community colleges
937in this state.
938     3.  A description of the existing or projected impact of
939the project on established clusters or targeted industry
940sectors.
941     4.  A description of the project's contribution to the
942diversity and resiliency of the innovation economy of this
943state.
944     5.  A description of the project's impact on special needs
945communities, including, but not limited to, rural areas,
946distressed urban areas, and enterprise zones.
947     (m)  Additional evaluative criteria for alternative and
948renewable energy proposals, including:
949     1.  The availability of matching funds or other in-kind
950contributions applied to the total project from an applicant.
951The department commission shall give greater preference to
952projects that provide such matching funds or other in-kind
953contributions.
954     2.  The degree to which the project stimulates in-state
955capital investment and economic development in metropolitan and
956rural areas, including the creation of jobs and the future
957development of a commercial market for renewable energy
958technologies.
959     3.  The extent to which the proposed project has been
960demonstrated to be technically feasible based on pilot project
961demonstrations, laboratory testing, scientific modeling, or
962engineering or chemical theory that supports the proposal.
963     4.  The degree to which the project incorporates an
964innovative new technology or an innovative application of an
965existing technology.
966     5.  The degree to which a project generates thermal,
967mechanical, or electrical energy by means of a renewable energy
968resource that has substantial long-term production potential.
969     6.  The degree to which a project demonstrates efficient
970use of energy and material resources.
971     7.  The degree to which the project fosters overall
972understanding and appreciation of renewable energy technologies.
973     8.  The ability to administer a complete project.
974     9.  Project duration and timeline for expenditures.
975     10.  The geographic area in which the project is to be
976conducted in relation to other projects.
977     11.  The degree of public visibility and interaction.
978     Section 12.  Subsection (9) of section 288.9607, Florida
979Statutes, is amended to read:
980     288.9607  Guaranty of bond issues.-
981     (9)  The membership of the corporation is authorized and
982directed to conduct such investigation as it may deem necessary
983for promulgation of regulations to govern the operation of the
984guaranty program authorized by this section. The regulations may
985include such other additional provisions, restrictions, and
986conditions as the corporation, after its investigation referred
987to in this subsection, shall determine to be proper to achieve
988the most effective utilization of the guaranty program. This may
989include, without limitation, a detailing of the remedies that
990must be exhausted by bondholders, a trustee acting on their
991behalf, or other credit provided before calling upon the
992corporation to perform under its guaranty agreement and the
993subrogation of other rights of the corporation with reference to
994the capital project and its operation or the financing in the
995event the corporation makes payment pursuant to the applicable
996guaranty agreement. The regulations promulgated by the
997corporation to govern the operation of the guaranty program may
998contain specific provisions with respect to the rights of the
999corporation to enter, take over, and manage all financed
1000properties upon default. These regulations shall be submitted by
1001the corporation to the Department of Agriculture and Consumer
1002Services Florida Energy and Climate Commission for approval.
1003     Section 13.  Subsection (5) of section 366.82, Florida
1004Statutes, is amended to read:
1005     366.82  Definition; goals; plans; programs; annual reports;
1006energy audits.-
1007     (5)  The Department of Agriculture and Consumer Services
1008Florida Energy and Climate Commission shall be a party in the
1009proceedings to adopt goals and shall file with the commission
1010comments on the proposed goals, including, but not limited to:
1011     (a)  An evaluation of utility load forecasts, including an
1012assessment of alternative supply-side and demand-side resource
1013options.
1014     (b)  An analysis of various policy options that can be
1015implemented to achieve a least-cost strategy, including
1016nonutility programs targeted at reducing and controlling the per
1017capita use of electricity in the state.
1018     (c)  An analysis of the impact of state and local building
1019codes and appliance efficiency standards on the need for
1020utility-sponsored conservation and energy efficiency measures
1021and programs.
1022     Section 14.  Section 377.6015, Florida Statutes, is amended
1023to read:
1024     377.6015  Department of Agriculture and Consumer Services;
1025powers and duties Florida Energy and Climate Commission.-To
1026carry out the purposes of this part:
1027     (1)  The Florida Energy and Climate Commission is created
1028within the Executive Office of the Governor. The commission
1029shall be comprised of nine members appointed by the Governor,
1030the Commissioner of Agriculture, and the Chief Financial
1031Officer.
1032     (a)  The Governor shall appoint one member from three
1033persons nominated by the Florida Public Service Commission
1034Nominating Council, created in s. 350.031, to each of seven
1035seats on the commission. The Commissioner of Agriculture shall
1036appoint one member from three persons nominated by the council
1037to one seat on the commission. The Chief Financial Officer shall
1038appoint one member from three persons nominated by the council
1039to one seat on the commission.
1040     1.  The council shall submit the recommendations to the
1041Governor, the Commissioner of Agriculture, and the Chief
1042Financial Officer by September 1 of those years in which the
1043terms are to begin the following October or within 60 days after
1044a vacancy occurs for any reason other than the expiration of the
1045term. The Governor, the Commissioner of Agriculture, and the
1046Chief Financial Officer may proffer names of persons to be
1047considered for nomination by the council.
1048     2.  The Governor, the Commissioner of Agriculture, and the
1049Chief Financial Officer shall fill a vacancy occurring on the
1050commission by appointment of one of the applicants nominated by
1051the council only after a background investigation of such
1052applicant has been conducted by the Department of Law
1053Enforcement.
1054     3.  Members shall be appointed to 3-year terms; however, in
1055order to establish staggered terms, for the initial
1056appointments, the Governor shall appoint four members to 3-year
1057terms, two members to 2-year terms, and one member to a 1-year
1058term, and the Commissioner of Agriculture and the Chief
1059Financial Officer shall each appoint one member to a 3-year term
1060and shall appoint a successor when that appointee's term expires
1061in the same manner as the original appointment.
1062     4.  The Governor shall select from the membership of the
1063commission one person to serve as chair.
1064     5.  A vacancy on the commission shall be filled for the
1065unexpired portion of the term in the same manner as the original
1066appointment.
1067     6.  If the Governor, the Commissioner of Agriculture, or
1068the Chief Financial Officer has not made an appointment within
106930 consecutive calendar days after the receipt of the
1070recommendations, the council shall initiate, in accordance with
1071this section, the nominating process within 30 days.
1072     7.  Each appointment to the commission shall be subject to
1073confirmation by the Senate during the next regular session after
1074the vacancy occurs. If the Senate refuses to confirm or fails to
1075consider the appointment of the Governor, the Commissioner of
1076Agriculture, or the Chief Financial Officer, the council shall
1077initiate, in accordance with this section, the nominating
1078process within 30 days.
1079     8.  The Governor or the Governor's successor may recall an
1080appointee.
1081     9.  Notwithstanding subparagraph 7. and for the initial
1082appointments to the commission only, each initial appointment to
1083the commission is subject to confirmation by the Senate by the
10842010 Regular Session. If the Senate refuses to confirm or fails
1085to consider an appointment made by the Governor, the
1086Commissioner of Agriculture, or the Chief Financial Officer, the
1087council shall initiate, in accordance with this section, the
1088nominating process within 30 days after the Senate's refusal to
1089confirm or failure to consider such appointment. This
1090subparagraph expires July 1, 2010.
1091     (b)  Members must meet the following qualifications and
1092restrictions:
1093     1.  A member must be an expert in one or more of the
1094following fields: energy, natural resource conservation,
1095economics, engineering, finance, law, transportation and land
1096use, consumer protection, state energy policy, or another field
1097substantially related to the duties and functions of the
1098commission. The commission shall fairly represent the fields
1099specified in this subparagraph.
1100     2.  Each member shall, at the time of appointment and at
1101each commission meeting during his or her term of office,
1102disclose:
1103     a.  Whether he or she has any financial interest, other
1104than ownership of shares in a mutual fund, in any business
1105entity that, directly or indirectly, owns or controls, or is an
1106affiliate or subsidiary of, any business entity that may be
1107affected by the policy recommendations developed by the
1108commission.
1109     b.  Whether he or she is employed by or is engaged in any
1110business activity with any business entity that, directly or
1111indirectly, owns or controls, or is an affiliate or subsidiary
1112of, any business entity that may be affected by the policy
1113recommendations developed by the commission.
1114     (c)  The chair may designate the following ex officio,
1115nonvoting members to provide information and advice to the
1116commission at the request of the chair:
1117     1.  The chair of the Florida Public Service Commission, or
1118his or her designee.
1119     2.  The Public Counsel, or his or her designee.
1120     3.  A representative of the Department of Agriculture and
1121Consumer Services.
1122     4.  A representative of the Department of Financial
1123Services.
1124     5.  A representative of the Department of Environmental
1125Protection.
1126     6.  A representative of the Department of Community
1127Affairs.
1128     7.  A representative of the Board of Governors of the State
1129University System.
1130     8.  A representative of the Department of Transportation.
1131     (2)  Members shall serve without compensation but are
1132entitled to reimbursement for per diem and travel expenses as
1133provided in s. 112.061.
1134     (3)  Meetings of the commission may be held in various
1135locations around the state and at the call of the chair;
1136however, the commission must meet at least six times each year.
1137     (1)(4)  The department commission may:
1138     (a)  Employ staff and counsel as needed in the performance
1139of its duties.
1140     (b)  Prosecute and defend legal actions in its own name.
1141     (c)  Form advisory groups consisting of members of the
1142public to provide information on specific issues.
1143     (2)(5)  The department commission shall:
1144     (a)  Administer the Florida Renewable Energy and Energy-
1145Efficient Technologies Grants Program pursuant to s. 377.804 to
1146assure a robust grant portfolio.
1147     (b)  Develop policy for requiring grantees to provide
1148royalty-sharing or licensing agreements with state government
1149for commercialized products developed under a state grant.
1150     (c)  Administer the Florida Green Government Grants Act
1151pursuant to s. 377.808 and set annual priorities for grants.
1152     (d)  Administer the information gathering and reporting
1153functions pursuant to ss. 377.601-377.608.
1154     (e)  Administer petroleum planning and emergency
1155contingency planning pursuant to ss. 377.701, 377.703, and
1156377.704.
1157     (f)  Represent Florida in the Southern States Energy
1158Compact pursuant to ss. 377.71-377.712.
1159     (g)  Complete the annual assessment of the efficacy of
1160Florida's Energy and Climate Change Action Plan, upon completion
1161by the Governor's Action Team on Energy and Climate Change
1162pursuant to the Governor's Executive Order 2007-128, and provide
1163specific recommendations to the Governor and the Legislature
1164each year to improve results.
1165     (g)(h)  Administer the provisions of the Florida Energy and
1166Climate Protection Act pursuant to ss. 377.801-377.807 377.801-
1167377.806.
1168     (h)(i)  Advocate for energy and climate change issues and
1169provide educational outreach and technical assistance in
1170cooperation with the state's academic institutions.
1171     (i)(j)  Be a party in the proceedings to adopt goals and
1172submit comments to the Public Service Commission pursuant to s.
1173366.82.
1174     (j)(k)  Adopt rules pursuant to chapter 120 in order to
1175implement all powers and duties described in this section.
1176     Section 15.  Section 377.602, Florida Statutes, is amended
1177to read:
1178     377.602  Definitions.-As used in ss. 377.601-377.608:
1179     (1)  "Department" "Commission" means the Department of
1180Agriculture and Consumer Services Florida Energy and Climate
1181Commission.
1182     (2)  "Energy resources" includes, but shall not be limited
1183to:
1184     (a)  Energy converted from solar radiation, wind, hydraulic
1185potential, tidal movements, biomass, geothermal sources, and
1186other energy resources the department commission determines to
1187be important to the production or supply of energy.
1188     (b)  Propane, butane, motor gasoline, kerosene, home
1189heating oil, diesel fuel, other middle distillates, aviation
1190gasoline, kerosene-type jet fuel, naphtha-type jet fuel,
1191residual fuels, crude oil, and other petroleum products and
1192hydrocarbons as may be determined by the department commission
1193to be of importance.
1194     (c)  All natural gas, including casinghead gas, all other
1195hydrocarbons not defined as petroleum products in paragraph (b),
1196and liquefied petroleum gas as defined in s. 527.01.
1197     (d)  All types of coal and products derived from its
1198conversion and used as fuel.
1199     (e)  All types of nuclear energy, special nuclear material,
1200and source material, as defined in former s. 290.07.
1201     (f)  All electrical energy.
1202     (3)  "Person" means producer, refiner, wholesaler,
1203marketer, consignee, jobber, distributor, storage operator,
1204importer, exporter, firm, corporation, broker, cooperative,
1205public utility as defined in s. 366.02, rural electrification
1206cooperative, municipality engaged in the business of providing
1207electricity or other energy resources to the public, pipeline
1208company, person transporting any energy resources as defined in
1209subsection (2), and person holding energy reserves for further
1210production; however, "person" does not include persons
1211exclusively engaged in the retail sale of petroleum products.
1212     Section 16.  Section 377.603, Florida Statutes, is amended
1213to read:
1214     377.603  Energy data collection; powers and duties of the
1215department commission.-
1216     (1)  The department commission may collect data on the
1217extraction, production, importation, exportation, refinement,
1218transportation, transmission, conversion, storage, sale, or
1219reserves of energy resources in this state in an efficient and
1220expeditious manner.
1221     (2)  The department commission may prepare periodic reports
1222of energy data it collects.
1223     (3)  The department commission may adopt and promulgate
1224such rules and regulations as are necessary to carry out the
1225provisions of ss. 377.601-377.608. Such rules shall be pursuant
1226to chapter 120.
1227     (4)  The department commission shall maintain internal
1228validation procedures to assure the accuracy of information
1229received.
1230     Section 17.  Section 377.604, Florida Statutes, is amended
1231to read:
1232     377.604  Required reports.-Every person who produces,
1233imports, exports, refines, transports, transmits, converts,
1234stores, sells, or holds known reserves of any form of energy
1235resources used as fuel shall report to the department
1236commission, at the request of and in a manner prescribed by the
1237department commission, on forms provided by the department
1238commission. Such forms shall be designed in such a manner as to
1239indicate:
1240     (1)  The identity of the person or persons making the
1241report.
1242     (2)  The quantity of energy resources extracted, produced,
1243imported, exported, refined, transported, transmitted,
1244converted, stored, or sold except at retail.
1245     (3)  The quantity of energy resources known to be held in
1246reserve in the state.
1247     (4)  The identity of each refinery from which petroleum
1248products have normally been obtained and the type and quantity
1249of products secured from that refinery for sale or resale in
1250this state.
1251     (5)  Any other information which the department commission
1252deems proper pursuant to the intent of ss. 377.601-377.608.
1253     Section 18.  Section 377.605, Florida Statutes, is amended
1254to read:
1255     377.605  Use of existing information.-The department
1256commission may utilize to the fullest extent possible any
1257existing energy information already prepared for state or
1258federal agencies. Every state, county, and municipal agency
1259shall cooperate with the department commission and shall submit
1260any information on energy to the department commission upon
1261request.
1262     Section 19.  Section 377.606, Florida Statutes, is amended
1263to read:
1264     377.606  Records of the department commission; limits of
1265confidentiality.-The information or records of individual
1266persons, as defined in this section, obtained by the department
1267commission as a result of a report, investigation, or
1268verification required by the department commission shall be open
1269to the public, except such information the disclosure of which
1270would be likely to cause substantial harm to the competitive
1271position of the person providing such information and which is
1272requested to be held confidential by the person providing such
1273information. Such proprietary information is confidential and
1274exempt from the provisions of s. 119.07(1). Information reported
1275by entities other than the department commission in documents or
1276reports open to public inspection shall under no circumstances
1277be classified as confidential by the department commission.
1278Divulgence of proprietary information as is requested to be held
1279confidential, except upon order of a court of competent
1280jurisdiction or except to an officer of the state entitled to
1281receive the same in his or her official capacity, shall be a
1282misdemeanor of the second degree, punishable as provided in ss.
1283775.082 and 775.083. Nothing in this section shall be construed
1284to prohibit the publication or divulgence by other means of data
1285so classified as to prevent identification of particular
1286accounts or reports made to the department commission in
1287compliance with s. 377.603 or to prohibit the disclosure of such
1288information to properly qualified legislative committees. The
1289department commission shall establish a system which permits
1290reasonable access to information developed.
1291     Section 20.  Section 377.608, Florida Statutes, is amended
1292to read:
1293     377.608  Prosecution of cases by state attorney.-The state
1294attorney shall prosecute all cases certified to him or her for
1295prosecution by the department commission immediately upon
1296receipt of the evidence transmitted by the department
1297commission, or as soon thereafter as practicable.
1298     Section 21.  Section 377.701, Florida Statutes, is amended
1299to read:
1300     377.701  Petroleum allocation.-
1301     (1)  The Department of Agriculture and Consumer Services
1302Florida Energy and Climate Commission shall assume the state's
1303role in petroleum allocation and conservation, including the
1304development of a fair and equitable petroleum plan. The
1305department commission shall constitute the responsible state
1306agency for performing the functions of any federal program
1307delegated to the state, which relates to petroleum supply,
1308demand, and allocation.
1309     (2)  The department commission shall, in addition to
1310assuming the duties and responsibilities provided by subsection
1311(1), perform the following:
1312     (a)  In projecting available supplies of petroleum,
1313coordinate with the Department of Revenue to secure information
1314necessary to assure the sufficiency and accuracy of data
1315submitted by persons affected by any federal fuel allocation
1316program.
1317     (b)  Require such periodic reports from public and private
1318sources as may be necessary to the fulfillment of its
1319responsibilities under this act. Such reports may include:
1320petroleum use; all sales, including end-user sales, except
1321retail gasoline and retail fuel oil sales; inventories; expected
1322supplies and allocations; and petroleum conservation measures.
1323     (c)  In cooperation with the Department of Revenue and
1324other relevant state agencies, provide for long-range studies
1325regarding the usage of petroleum in the state in order to:
1326     1.  Comprehend the consumption of petroleum resources.
1327     2.  Predict future petroleum demands in relation to
1328available resources.
1329     3.  Report the results of such studies to the Legislature.
1330     (3)  For the purpose of determining accuracy of data, all
1331state agencies shall timely provide the department commission
1332with petroleum-use information in a format suitable to the needs
1333of the allocation program.
1334     (4)  A state employee may not divulge or make known in any
1335manner any proprietary information acquired under this act if
1336the disclosure of such information would be likely to cause
1337substantial harm to the competitive position of the person
1338providing such information and if the person requests that such
1339information be held confidential, except in accordance with a
1340court order or in the publication of statistical information
1341compiled by methods which do not disclose the identity of
1342individual suppliers or companies. Such proprietary information
1343is confidential and exempt from the provisions of s. 119.07(1).
1344Nothing in this subsection shall be construed to prevent
1345inspection of reports by the Attorney General, members of the
1346Legislature, and interested state agencies; however, such
1347agencies and their employees and members are bound by the
1348requirements set forth in this subsection.
1349     (5)  Any person who willfully fails to submit information
1350required by this act or submits false information or who
1351violates any provision of this act commits a misdemeanor of the
1352first degree and shall be punished as provided in ss. 775.082
1353and 775.083.
1354     Section 22.  Section 377.703, Florida Statutes, is amended
1355to read:
1356     377.703  Additional functions of the Department of
1357Agriculture and Consumer Services Florida Energy and Climate
1358Commission.-
1359     (1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
1360demand questions have become a major area of concern to the
1361state which must be dealt with by effective and well-coordinated
1362state action, it is the intent of the Legislature to promote the
1363efficient, effective, and economical management of energy
1364problems, centralize energy coordination responsibilities,
1365pinpoint responsibility for conducting energy programs, and
1366ensure the accountability of state agencies for the
1367implementation of s. 377.601(2), the state energy policy. It is
1368the specific intent of the Legislature that nothing in this act
1369shall in any way change the powers, duties, and responsibilities
1370assigned by the Florida Electrical Power Plant Siting Act, part
1371II of chapter 403, or the powers, duties, and responsibilities
1372of the Florida Public Service Commission.
1373     (2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
1374department commission shall perform the following functions
1375consistent with the development of a state energy policy:
1376     (a)  The department commission shall assume the
1377responsibility for development of an energy emergency
1378contingency plan to respond to serious shortages of primary and
1379secondary energy sources. Upon a finding by the Governor,
1380implementation of any emergency program shall be upon order of
1381the Governor that a particular kind or type of fuel is, or that
1382the occurrence of an event which is reasonably expected within
138330 days will make the fuel, in short supply. The department
1384commission shall then respond by instituting the appropriate
1385measures of the contingency plan to meet the given emergency or
1386energy shortage. The Governor may utilize the provisions of s.
1387252.36(5) to carry out any emergency actions required by a
1388serious shortage of energy sources.
1389     (b)  The department commission shall be responsible for
1390performing or coordinating the functions of any federal energy
1391programs delegated to the state, including energy supply,
1392demand, conservation, or allocation.
1393     (c)  The department commission shall analyze present and
1394proposed federal energy programs and make recommendations
1395regarding those programs to the Governor and the Legislature.
1396     (d)  The department commission shall coordinate efforts to
1397seek federal support or other support for state energy
1398activities, including energy conservation, research, or
1399development, and shall be responsible for the coordination of
1400multiagency energy conservation programs and plans.
1401     (e)  The department commission shall analyze energy data
1402collected and prepare long-range forecasts of energy supply and
1403demand in coordination with the Florida Public Service
1404Commission, which shall have responsibility for electricity and
1405natural gas forecasts. To this end, the forecasts shall contain:
1406     1.  An analysis of the relationship of state economic
1407growth and development to energy supply and demand, including
1408the constraints to economic growth resulting from energy supply
1409constraints.
1410     2.  Plans for the development of renewable energy resources
1411and reduction in dependence on depletable energy resources,
1412particularly oil and natural gas, and an analysis of the extent
1413to which renewable energy sources are being utilized in the
1414state.
1415     3.  Consideration of alternative scenarios of statewide
1416energy supply and demand for 5, 10, and 20 years to identify
1417strategies for long-range action, including identification of
1418potential social, economic, and environmental effects.
1419     4.  An assessment of the state's energy resources,
1420including examination of the availability of commercially
1421developable and imported fuels, and an analysis of anticipated
1422effects on the state's environment and social services resulting
1423from energy resource development activities or from energy
1424supply constraints, or both.
1425     (f)  The department commission shall submit an annual
1426report to the Governor and the Legislature reflecting its
1427activities and making recommendations of policies for
1428improvement of the state's response to energy supply and demand
1429and its effect on the health, safety, and welfare of the people
1430of Florida. The report shall include a report from the Florida
1431Public Service Commission on electricity and natural gas and
1432information on energy conservation programs conducted and
1433underway in the past year and shall include recommendations for
1434energy conservation programs for the state, including, but not
1435limited to, the following factors:
1436     1.  Formulation of specific recommendations for improvement
1437in the efficiency of energy utilization in governmental,
1438residential, commercial, industrial, and transportation sectors.
1439     2.  Collection and dissemination of information relating to
1440energy conservation.
1441     3.  Development and conduct of educational and training
1442programs relating to energy conservation.
1443     4.  An analysis of the ways in which state agencies are
1444seeking to implement s. 377.601(2), the state energy policy, and
1445recommendations for better fulfilling this policy.
1446     (g)  The department commission has authority to adopt rules
1447pursuant to ss. 120.536(1) and 120.54 to implement the
1448provisions of this act.
1449     (h)  The department commission shall promote the
1450development and use of renewable energy resources, in
1451conformance with the provisions of chapter 187 and s. 377.601,
1452by:
1453     1.  Establishing goals and strategies for increasing the
1454use of solar energy in this state.
1455     2.  Aiding and promoting the commercialization of solar
1456energy technology, in cooperation with the Florida Solar Energy
1457Center, Enterprise Florida, Inc., and any other federal, state,
1458or local governmental agency which may seek to promote research,
1459development, and demonstration of solar energy equipment and
1460technology.
1461     3.  Identifying barriers to greater use of solar energy
1462systems in this state, and developing specific recommendations
1463for overcoming identified barriers, with findings and
1464recommendations to be submitted annually in the report to the
1465Governor and Legislature required under paragraph (f).
1466     4.  In cooperation with the Department of Environmental
1467Protection, the Department of Transportation, the Department of
1468Community Affairs, Enterprise Florida, Inc., the Florida Solar
1469Energy Center, and the Florida Solar Energy Industries
1470Association, investigating opportunities, pursuant to the
1471National Energy Policy Act of 1992, the Housing and Community
1472Development Act of 1992, and any subsequent federal legislation,
1473for solar electric vehicles and other solar energy
1474manufacturing, distribution, installation, and financing efforts
1475which will enhance this state's position as the leader in solar
1476energy research, development, and use.
1477     5.  Undertaking other initiatives to advance the
1478development and use of renewable energy resources in this state.
1479
1480In the exercise of its responsibilities under this paragraph,
1481the department commission shall seek the assistance of the solar
1482energy industry in this state and other interested parties and
1483is authorized to enter into contracts, retain professional
1484consulting services, and expend funds appropriated by the
1485Legislature for such purposes.
1486     (i)  The department commission shall promote energy
1487conservation in all energy use sectors throughout the state and
1488shall constitute the state agency primarily responsible for this
1489function. To this end, the department commission shall
1490coordinate the energy conservation programs of all state
1491agencies and review and comment on the energy conservation
1492programs of all state agencies.
1493     (j)  The department commission shall serve as the state
1494clearinghouse for indexing and gathering all information related
1495to energy programs in state universities, in private
1496universities, in federal, state, and local government agencies,
1497and in private industry and shall prepare and distribute such
1498information in any manner necessary to inform and advise the
1499citizens of the state of such programs and activities. This
1500shall include developing and maintaining a current index and
1501profile of all research activities, which shall be identified by
1502energy area and may include a summary of the project, the amount
1503and sources of funding, anticipated completion dates, or, in
1504case of completed research, conclusions, recommendations, and
1505applicability to state government and private sector functions.
1506The department commission shall coordinate, promote, and respond
1507to efforts by all sectors of the economy to seek financial
1508support for energy activities. The department commission shall
1509provide information to consumers regarding the anticipated
1510energy-use and energy-saving characteristics of products and
1511services in coordination with any federal, state, or local
1512governmental agencies as may provide such information to
1513consumers.
1514     (k)  The department commission shall coordinate energy-
1515related programs of state government, including, but not limited
1516to, the programs provided in this section. To this end, the
1517department commission shall:
1518     1.  Provide assistance to other state agencies, counties,
1519municipalities, and regional planning agencies to further and
1520promote their energy planning activities.
1521     2.  Require, in cooperation with the Department of
1522Management Services, all state agencies to operate state-owned
1523and state-leased buildings in accordance with energy
1524conservation standards as adopted by the Department of
1525Management Services. Every 3 months, the Department of
1526Management Services shall furnish the department commission data
1527on agencies' energy consumption and emissions of greenhouse
1528gases in a format prescribed by the department commission.
1529     3.  Promote the development and use of renewable energy
1530resources, energy efficiency technologies, and conservation
1531measures.
1532     4.  Promote the recovery of energy from wastes, including,
1533but not limited to, the use of waste heat, the use of
1534agricultural products as a source of energy, and recycling of
1535manufactured products. Such promotion shall be conducted in
1536conjunction with, and after consultation with, the Department of
1537Environmental Protection and the Florida Public Service
1538Commission where electrical generation or natural gas is
1539involved, and any other relevant federal, state, or local
1540governmental agency having responsibility for resource recovery
1541programs.
1542     (l)  The department commission shall develop, coordinate,
1543and promote a comprehensive research plan for state programs.
1544Such plan shall be consistent with state energy policy and shall
1545be updated on a biennial basis.
1546     (m)  In recognition of the devastation to the economy of
1547this state and the dangers to the health and welfare of
1548residents of this state caused by severe hurricanes, and the
1549potential for such impacts caused by other natural disasters,
1550the department commission shall include in its energy emergency
1551contingency plan and provide to the Florida Building Commission
1552for inclusion in the Florida Energy Efficiency Code for Building
1553Construction specific provisions to facilitate the use of cost-
1554effective solar energy technologies as emergency remedial and
1555preventive measures for providing electric power, street
1556lighting, and water heating service in the event of electric
1557power outages.
1558     (3)  The department commission shall be responsible for the
1559administration of the Coastal Energy Impact Program provided for
1560and described in Pub. L. No. 94-370, 16 U.S.C. s. 1456a.
1561     Section 23.  Section 377.801, Florida Statutes, is amended
1562to read:
1563     377.801  Short title.-Sections 377.801-377.807 377.801-
1564377.806 may be cited as the "Florida Energy and Climate
1565Protection Act."
1566     Section 24.  Section 377.802, Florida Statutes, is amended
1567to read:
1568     377.802  Purpose.-This act is intended to provide
1569incentives for Florida's citizens, businesses, school districts,
1570and local governments to take action to diversify the state's
1571energy supplies, reduce dependence on foreign oil, and mitigate
1572the effects of climate change by providing funding for
1573activities designed to achieve these goals. The grant programs
1574in this act are intended to stimulate capital investment in and
1575enhance the market for renewable energy technologies and
1576technologies intended to diversify Florida's energy supplies,
1577reduce dependence on foreign oil, and combat or limit climate
1578change impacts. This act is also intended to provide incentives
1579for the purchase of energy-efficient appliances and rebates for
1580solar energy equipment installations for residential and
1581commercial buildings.
1582     Section 25.  Section 377.803, Florida Statutes, is amended
1583to read:
1584     377.803  Definitions.-As used in ss. 377.801-377.807
1585377.801-377.806, the term:
1586     (1)  "Act" means the Florida Energy and Climate Protection
1587Act.
1588     (2)  "Department" "Commission" means the Department of
1589Agriculture and Consumer Services Florida Energy and Climate
1590Commission.
1591     (3)  "Person" means an individual, partnership, joint
1592venture, private or public corporation, association, firm,
1593public service company, or any other public or private entity.
1594     (4)  "Renewable energy" means electrical, mechanical, or
1595thermal energy produced from a method that uses one or more of
1596the following fuels or energy sources: hydrogen, biomass, as
1597defined in s. 366.91, solar energy, geothermal energy, wind
1598energy, ocean energy, waste heat, or hydroelectric power.
1599     (5)  "Renewable energy technology" means any technology
1600that generates or utilizes a renewable energy resource.
1601     (6)  "Solar energy system" means equipment that provides
1602for the collection and use of incident solar energy for water
1603heating, space heating or cooling, or other applications that
1604would normally require a conventional source of energy such as
1605petroleum products, natural gas, or electricity that performs
1606primarily with solar energy. In other systems in which solar
1607energy is used in a supplemental way, only those components that
1608collect and transfer solar energy shall be included in this
1609definition.
1610     (7)  "Solar photovoltaic system" means a device that
1611converts incident sunlight into electrical current.
1612     (8)  "Solar thermal system" means a device that traps heat
1613from incident sunlight in order to heat water.
1614     Section 26.  Section 377.804, Florida Statutes, is amended
1615to read:
1616     377.804  Renewable Energy and Energy-Efficient Technologies
1617Grants Program.-
1618     (1)  The Renewable Energy and Energy-Efficient Technologies
1619Grants Program is established within the department commission
1620to provide renewable energy matching grants for demonstration,
1621commercialization, research, and development projects relating
1622to renewable energy technologies and innovative technologies
1623that significantly increase energy efficiency for vehicles and
1624commercial buildings.
1625     (2)  Matching grants for projects described in subsection
1626(1) may be made to any of the following:
1627     (a)  Municipalities and county governments.
1628     (b)  Established for-profit companies licensed to do
1629business in the state.
1630     (c)  Universities and colleges in the state.
1631     (d)  Utilities located and operating within the state.
1632     (e)  Not-for-profit organizations.
1633     (f)  Other qualified persons, as determined by the
1634department commission.
1635     (3)  The department commission may adopt rules pursuant to
1636ss. 120.536(1) and 120.54 to provide for application
1637requirements, provide for ranking of applications, and
1638administer the awarding of grants under this program.
1639     (4)  Factors the department commission shall consider in
1640awarding grants include, but are not limited to:
1641     (a)  The availability of matching funds or other in-kind
1642contributions applied to the total project from an applicant.
1643The department commission shall give greater preference to
1644projects that provide such matching funds or other in-kind
1645contributions.
1646     (b)  The degree to which the project stimulates in-state
1647capital investment and economic development in metropolitan and
1648rural areas, including the creation of jobs and the future
1649development of a commercial market for renewable energy
1650technologies.
1651     (c)  The extent to which the proposed project has been
1652demonstrated to be technically feasible based on pilot project
1653demonstrations, laboratory testing, scientific modeling, or
1654engineering or chemical theory that supports the proposal.
1655     (d)  The degree to which the project incorporates an
1656innovative new technology or an innovative application of an
1657existing technology.
1658     (e)  The degree to which a project generates thermal,
1659mechanical, or electrical energy by means of a renewable energy
1660resource that has substantial long-term production potential.
1661     (f)  The degree to which a project demonstrates efficient
1662use of energy and material resources.
1663     (g)  The degree to which the project fosters overall
1664understanding and appreciation of renewable energy technologies.
1665     (h)  The ability to administer a complete project.
1666     (i)  Project duration and timeline for expenditures.
1667     (j)  The geographic area in which the project is to be
1668conducted in relation to other projects.
1669     (k)  The degree of public visibility and interaction.
1670     (5)  The department commission shall solicit the expertise
1671of state agencies, Enterprise Florida, Inc., and state
1672universities, and may solicit the expertise of other public and
1673private entities it deems appropriate, in evaluating project
1674proposals. State agencies shall cooperate with the department
1675commission and provide such assistance as requested.
1676     (6)  The commission shall coordinate and actively consult
1677with the Department of Agriculture and Consumer Services during
1678the review and approval process of grants relating to bioenergy
1679projects for renewable energy technology. Factors for
1680consideration in awarding grants relating to bioenergy projects
1681may include, but are not limited to, the degree to which:
1682     (a)  The project stimulates in-state capital investment and
1683economic development in metropolitan and rural areas, including
1684the creation of jobs and the future development of a commercial
1685market for bioenergy.
1686     (b)  The project produces bioenergy from Florida-grown
1687crops or biomass.
1688     (c)  The project demonstrates efficient use of energy and
1689material resources.
1690     (d)  The project fosters overall understanding and
1691appreciation of bioenergy technologies.
1692     (e)  Matching funds and in-kind contributions from an
1693applicant are available.
1694     (f)  The project duration and the timeline for expenditures
1695are acceptable.
1696     (g)  The project has a reasonable assurance of enhancing
1697the value of agricultural products or will expand agribusiness
1698in the state.
1699     (h)  Preliminary market and feasibility research has been
1700conducted by the applicant or others and shows there is a
1701reasonable assurance of a potential market.
1702     (7)  Each grant application shall be accompanied by an
1703affidavit from the applicant attesting to the accuracy of the
1704statements contained in the application.
1705     Section 27.  Section 377.807, Florida Statutes, is amended
1706to read:
1707     377.807  Energy-efficient appliance rebate program.-
1708     (1)  The department Florida Energy and Climate Commission
1709is authorized to develop and administer a consumer rebate
1710program for residential energy-efficient appliances, consistent
1711with 42 U.S.C. s. 15821 and any federal agency guidance or
1712regulations issued in furtherance of federal law.
1713     (2)  The department commission may adopt rules pursuant to
1714ss. 120.536(1) and 120.54 designating eligible appliances,
1715rebate amounts, and the administration of the issuance of
1716rebates. The rules shall be consistent with 42 U.S.C. s. 15821
1717and any subsequent implementing federal regulations or guidance.
1718     (3)  The department commission is authorized to enter into
1719contracts or memoranda of agreement with other agencies of the
1720state, public-private partnerships, or other arrangements such
1721that the most efficient means of administering consumer rebates
1722can be achieved.
1723     Section 28.  Section 377.808, Florida Statutes, is amended
1724to read:
1725     377.808  Florida Green Government Grants Act.-
1726     (1)  This section may be cited as the "Florida Green
1727Government Grants Act."
1728     (2)  The department Florida Energy and Climate Commission
1729shall use funds specifically appropriated to award grants under
1730this section to assist local governments, including
1731municipalities, counties, and school districts, in the
1732development and implementation of programs that achieve green
1733standards. Green standards shall be determined by the department
1734commission and shall provide for cost-efficient solutions,
1735reducing greenhouse gas emissions, improving quality of life,
1736and strengthening the state's economy.
1737     (3)  The department commission shall adopt rules pursuant
1738to chapter 120 to administer the grants provided for in this
1739section. In accordance with the rules adopted by the department
1740commission under this section, the department commission may
1741provide grants from funds specifically appropriated for this
1742purpose to local governments for the costs of achieving green
1743standards, including necessary administrative expenses. The
1744rules of the department commission shall:
1745     (a)  Designate one or more suitable green government
1746standards frameworks from which local governments may develop a
1747greening government initiative and from which projects may be
1748eligible for funding pursuant to this section.
1749     (b)  Require that projects that plan, design, construct,
1750upgrade, or replace facilities reduce greenhouse gas emissions
1751and be cost-effective, environmentally sound, permittable, and
1752implementable.
1753     (c)  Require local governments to match state funds with
1754direct project cost sharing or in-kind services.
1755     (d)  Provide for a scale of matching requirements for local
1756governments on the basis of population in order to assist rural
1757and undeveloped areas of the state with any financial burden of
1758addressing climate change impacts.
1759     (e)  Require grant applications to be submitted on
1760appropriate forms developed and adopted by the department
1761commission with appropriate supporting documentation and require
1762records to be maintained.
1763     (f)  Establish a system to determine the relative priority
1764of grant applications. The system shall consider greenhouse gas
1765reductions, energy savings and efficiencies, and proven
1766technologies.
1767     (g)  Establish requirements for competitive procurement of
1768engineering and construction services, materials, and equipment.
1769     (h)  Provide for termination of grants when program
1770requirements are not met.
1771     (4)  Each local government is limited to not more than two
1772grant applications during each application period announced by
1773the department commission. However, a local government may not
1774have more than three active projects expending grant funds
1775during any state fiscal year.
1776     (5)  The department commission shall perform an adequate
1777overview of each grant, which may include technical review, site
1778inspections, disbursement approvals, and auditing to
1779successfully implement this section.
1780     Section 29.  Subsection (1) of section 377.809, Florida
1781Statutes, is amended to read:
1782     377.809  Energy Economic Zone Pilot Program.-
1783     (1)  The Department of Community Affairs, in consultation
1784with the Department of Transportation, shall implement an Energy
1785Economic Zone Pilot Program for the purpose of developing a
1786model to help communities cultivate green economic development,
1787encourage renewable electric energy generation, manufacture
1788products that contribute to energy conservation and green jobs,
1789and further implement chapter 2008-191, Laws of Florida,
1790relative to discouraging sprawl and developing energy-efficient
1791land use patterns and greenhouse gas reduction strategies. The
1792Office of Tourism, Trade, and Economic Development and the
1793Department of Agriculture and Consumer Services Florida Energy
1794and Climate Commission shall provide technical assistance to the
1795departments in developing and administering the program.
1796     Section 30.  Subsections (3) and (6) of section 403.44,
1797Florida Statutes, are amended to read:
1798     403.44  Florida Climate Protection Act.-
1799     (3)  The department may adopt rules for a cap-and-trade
1800regulatory program to reduce greenhouse gas emissions from major
1801emitters. When developing the rules, the department shall
1802consult with the Department of Agriculture and Consumer Services
1803Florida Energy and Climate Commission and the Florida Public
1804Service Commission and may consult with the Governor's Action
1805Team for Energy and Climate Change. The department shall not
1806adopt rules until after January 1, 2010. The rules shall not
1807become effective until ratified by the Legislature.
1808     (6)  Recognizing that the international, national, and
1809neighboring state policies and the science of climate change
1810will evolve, prior to submitting the proposed rules to the
1811Legislature for consideration, the department shall submit the
1812proposed rules to the Department of Agriculture and Consumer
1813Services Florida Energy and Climate Commission, which shall
1814review the proposed rules and submit a report to the Governor,
1815the President of the Senate, the Speaker of the House of
1816Representatives, and the department. The report shall address:
1817     (a)  The overall cost-effectiveness of the proposed cap-
1818and-trade system in combination with other policies and measures
1819in meeting statewide targets.
1820     (b)  The administrative burden to the state of
1821implementing, monitoring, and enforcing the program.
1822     (c)  The administrative burden on entities covered under
1823the cap.
1824     (d)  The impacts on electricity prices for consumers.
1825     (e)  The specific benefits to the state's economy for early
1826adoption of a cap-and-trade system for greenhouse gases in the
1827context of federal climate change legislation and the
1828development of new international compacts.
1829     (f)  The specific benefits to the state's economy
1830associated with the creation and sale of emissions offsets from
1831economic sectors outside of the emissions cap.
1832     (g)  The potential effects on leakage if economic activity
1833relocates out of the state.
1834     (h)  The effectiveness of the combination of measures in
1835meeting identified targets.
1836     (i)  The economic implications for near-term periods of
1837short-term and long-term targets specified in the overall
1838policy.
1839     (j)  The overall costs and benefits of a cap-and-trade
1840system to the economy of the state.
1841     (k)  The impacts on low-income consumers that result from
1842energy price increases.
1843     (l)  The consistency of the program with other state and
1844possible federal efforts.
1845     (m)  The evaluation of the conditions under which the state
1846should consider linking its trading system to the systems of
1847other states or other countries and how that might be affected
1848by the potential inclusion in the rule of a safety valve.
1849     (n)  The timing and changes in the external environment,
1850such as proposals by other states or implementation of a federal
1851program that would spur reevaluation of the Florida program.
1852     (o)  The conditions and options for eliminating the Florida
1853program if a federal program were to supplant it.
1854     (p)  The need for a regular reevaluation of the progress of
1855other emitting regions of the country and of the world, and
1856whether other regions are abating emissions in a commensurate
1857manner.
1858     (q)  The desirability of and possibilities of broadening
1859the scope of the state's cap-and-trade system at a later date to
1860include more emitting activities as well as sinks in Florida,
1861the conditions that would need to be met to do so, and how the
1862program would encourage these conditions to be met, including
1863developing monitoring and measuring techniques for land use
1864emissions and sinks, regulating sources upstream, and other
1865considerations.
1866     Section 31.  Section 409.508, Florida Statutes, is amended
1867to read:
1868     409.508  Low-income home energy assistance program.-
1869     (1)  As used in this section:
1870     (a)  "Eligible household" means a household eligible for
1871funds from the Low-income Home Energy Assistance Act of 1981, 42
1872U.S.C. ss. 8621 et seq.
1873     (b)  "Home energy" means a source of heating or cooling in
1874residential dwellings.
1875     (c)  "Utility" means any person, corporation, partnership,
1876municipality, cooperative, association, or other legal entity
1877and its lessees, trustees, or receivers now or hereafter owning,
1878operating, managing, or controlling any plant or other facility
1879supplying electricity or natural gas to or for the public within
1880this state, directly or indirectly, for compensation.
1881     (2)  The Department of Agriculture and Consumer Services
1882Community Affairs is designated as the state agency to
1883administer the Low-income Home Energy Assistance Act of 1981, 42
1884U.S.C. ss. 8621 et seq. The Department of Agriculture and
1885Consumer Services Community Affairs is authorized to provide
1886home energy assistance benefits to eligible households which may
1887be in the form of cash, vouchers, certificates, or direct
1888payments to electric or natural gas utilities or other energy
1889suppliers and operators of low-rent, subsidized housing in
1890behalf of eligible households. Priority shall be given to
1891eligible households having at least one elderly or handicapped
1892individual and to eligible households with the lowest incomes.
1893     (3)  Agreements may be established between electric or
1894natural gas utility companies, other energy suppliers, the
1895Department of Revenue, and the Department of Agriculture and
1896Consumer Services Community Affairs for the purpose of providing
1897payments to energy suppliers in the form of a credit against
1898sales and use taxes due or direct payments to energy suppliers
1899for services rendered to low-income, eligible households.
1900     (4)  The Department of Agriculture and Consumer Services
1901Community Affairs shall adopt rules to carry out the provisions
1902of this act.
1903     Section 32.  Section 409.509, Florida Statutes, is amended
1904to read:
1905     409.509  Definitions; weatherization of low-income
1906residences.-As used in ss. 409.509-409.5093 this act, the term:
1907     (1)  "Community action agency" means a private corporation
1908or public agency established pursuant to the Economic
1909Opportunity Act of 1964, Pub. L. No. 88-452, which is authorized
1910to administer funds from federal, state, local, or private
1911funding entities to assess, design, operate, finance, and
1912oversee antipoverty programs.
1913     (2)  "Department" means the Department of Agriculture and
1914Consumer Services Community Affairs.
1915     (3)  "Energy assessment" means an analysis of a dwelling
1916unit to determine the need for cost-effective energy
1917conservation measures as determined by the department.
1918     (4)  "Household" means an individual or group of
1919individuals living in a dwelling unit as defined by the
1920department.
1921     (5)  "Low income" means household income that is at or
1922below 125 percent of the federally established poverty level.
1923     (6)  "Residence" means a dwelling unit as defined by the
1924department.
1925     (7)  "Weatherization" means materials or measures and their
1926installation as defined in the federal Energy Conservation and
1927Production Act, Pub. L. No. 94-385, which are used to improve
1928the thermal efficiency of a residence.
1929     (8)  "Weatherizing agency" means any approved department
1930grantee that bears the responsibility for ensuring the
1931performance of weatherization of residences under this act and
1932has been approved by the department, that was performing
1933weatherization services as of July 1, 1988, unless such agency
1934has withdrawn or lost its designation as a result of failure to
1935perform under acceptable contract conditions as determined by
1936the department.
1937     Section 33.  Subsection (3) of section 570.954, Florida
1938Statutes, is amended to read:
1939     570.954  Farm-to-fuel initiative.-
1940     (3)  The department shall coordinate with and solicit the
1941expertise of the state energy office within the Department of
1942Environmental Protection when developing and implementing this
1943initiative.
1944     Section 34.  Subsections (5), (11), (12), and (13) of
1945section 1004.648, Florida Statutes, are amended to read:
1946     1004.648  Florida Energy Systems Consortium.-
1947     (5)  The director, whose office shall be located at the
1948University of Florida, shall report to the Department of
1949Agriculture and Consumer Services Florida Energy and Climate
1950Commission created pursuant to s. 377.6015.
1951     (11)  The oversight board, in consultation with the
1952Department of Agriculture and Consumer Services Florida Energy
1953and Climate Commission, shall ensure that the consortium:
1954     (a)  Maintains accurate records of any funds received by
1955the consortium.
1956     (b)  Meets financial and technical performance
1957expectations, which may include external technical reviews as
1958required.
1959     (12)  The steering committee shall consist of the
1960university representatives included in the Centers of Excellence
1961proposals for the Florida Energy Systems Consortium and the
1962Center of Excellence in Ocean Energy Technology-Phase II which
1963were reviewed during the 2007-2008 fiscal year by the Florida
1964Technology, Research, and Scholarship Board created in s.
19651004.226(4); a university representative appointed by the
1966President of Florida International University; and a
1967representative from the Department of Agriculture and Consumer
1968Services the Florida Energy and Climate Commission. The steering
1969committee shall be responsible for establishing and ensuring the
1970success of the consortium's mission under subsection (9).
1971     (13)  By November 1 of each year, the consortium shall
1972submit an annual report to the Governor, the President of the
1973Senate, the Speaker of the House of Representatives, and the
1974Department of Agriculture and Consumer Services Florida Energy
1975and Climate Commission regarding its activities, including, but
1976not limited to, education and research related to, and the
1977development and deployment of, alternative energy technologies.
1978     Section 35.  Paragraphs (ddd) through (hhh) of subsection
1979(7) of section 212.08, Florida Statutes, are redesignated as
1980paragraphs (ccc) through (ggg), respectively, and paragraph
1981(ccc) of that subsection is amended to read:
1982     212.08  Sales, rental, use, consumption, distribution, and
1983storage tax; specified exemptions.-The sale at retail, the
1984rental, the use, the consumption, the distribution, and the
1985storage to be used or consumed in this state of the following
1986are hereby specifically exempt from the tax imposed by this
1987chapter.
1988     (7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any
1989entity by this chapter do not inure to any transaction that is
1990otherwise taxable under this chapter when payment is made by a
1991representative or employee of the entity by any means,
1992including, but not limited to, cash, check, or credit card, even
1993when that representative or employee is subsequently reimbursed
1994by the entity. In addition, exemptions provided to any entity by
1995this subsection do not inure to any transaction that is
1996otherwise taxable under this chapter unless the entity has
1997obtained a sales tax exemption certificate from the department
1998or the entity obtains or provides other documentation as
1999required by the department. Eligible purchases or leases made
2000with such a certificate must be in strict compliance with this
2001subsection and departmental rules, and any person who makes an
2002exempt purchase with a certificate that is not in strict
2003compliance with this subsection and the rules is liable for and
2004shall pay the tax. The department may adopt rules to administer
2005this subsection.
2006     (ccc)  Equipment, machinery, and other materials for
2007renewable energy technologies.-
2008     1.  As used in this paragraph, the term:
2009     a.  "Biodiesel" means the mono-alkyl esters of long-chain
2010fatty acids derived from plant or animal matter for use as a
2011source of energy and meeting the specifications for biodiesel
2012and biodiesel blends with petroleum products as adopted by the
2013Department of Agriculture and Consumer Services. Biodiesel may
2014refer to biodiesel blends designated BXX, where XX represents
2015the volume percentage of biodiesel fuel in the blend.
2016     b.  "Ethanol" means an anhydrous denatured alcohol produced
2017by the conversion of carbohydrates meeting the specifications
2018for fuel ethanol and fuel ethanol blends with petroleum products
2019as adopted by the Department of Agriculture and Consumer
2020Services. Ethanol may refer to fuel ethanol blends designated
2021EXX, where XX represents the volume percentage of fuel ethanol
2022in the blend.
2023     c.  "Hydrogen fuel cells" means equipment using hydrogen or
2024a hydrogen-rich fuel in an electrochemical process to generate
2025energy, electricity, or the transfer of heat.
2026     2.  The sale or use of the following in the state is exempt
2027from the tax imposed by this chapter:
2028     a.  Hydrogen-powered vehicles, materials incorporated into
2029hydrogen-powered vehicles, and hydrogen-fueling stations, up to
2030a limit of $2 million in tax each state fiscal year for all
2031taxpayers.
2032     b.  Commercial stationary hydrogen fuel cells, up to a
2033limit of $1 million in tax each state fiscal year for all
2034taxpayers.
2035     c.  Materials used in the distribution of biodiesel (B10-
2036B100) and ethanol (E10-E100), including fueling infrastructure,
2037transportation, and storage, up to a limit of $1 million in tax
2038each state fiscal year for all taxpayers. Gasoline fueling
2039station pump retrofits for ethanol (E10-E100) distribution
2040qualify for the exemption provided in this sub-subparagraph.
2041     3.  The Florida Energy and Climate Commission shall provide
2042to the department a list of items eligible for the exemption
2043provided in this paragraph.
2044     4.a.  The exemption provided in this paragraph shall be
2045available to a purchaser only through a refund of previously
2046paid taxes. An eligible item is subject to refund one time. A
2047person who has received a refund on an eligible item shall
2048notify the next purchaser of the item that such item is no
2049longer eligible for a refund of paid taxes. This notification
2050shall be provided to each subsequent purchaser on the sales
2051invoice or other proof of purchase.
2052     b.  To be eligible to receive the exemption provided in
2053this paragraph, a purchaser shall file an application with the
2054Florida Energy and Climate Commission. The application shall be
2055developed by the Florida Energy and Climate Commission, in
2056consultation with the department, and shall require:
2057     (I)  The name and address of the person claiming the
2058refund.
2059     (II)  A specific description of the purchase for which a
2060refund is sought, including, when applicable, a serial number or
2061other permanent identification number.
2062     (III)  The sales invoice or other proof of purchase showing
2063the amount of sales tax paid, the date of purchase, and the name
2064and address of the sales tax dealer from whom the property was
2065purchased.
2066     (IV)  A sworn statement that the information provided is
2067accurate and that the requirements of this paragraph have been
2068met.
2069     c.  Within 30 days after receipt of an application, the
2070Florida Energy and Climate Commission shall review the
2071application and shall notify the applicant of any deficiencies.
2072Upon receipt of a completed application, the Florida Energy and
2073Climate Commission shall evaluate the application for exemption
2074and issue a written certification that the applicant is eligible
2075for a refund or issue a written denial of such certification
2076within 60 days after receipt of the application. The Florida
2077Energy and Climate Commission shall provide the department with
2078a copy of each certification issued upon approval of an
2079application.
2080     d.  Each certified applicant shall be responsible for
2081forwarding a certified copy of the application and copies of all
2082required documentation to the department within 6 months after
2083certification by the Florida Energy and Climate Commission.
2084     e.  A refund approved pursuant to this paragraph shall be
2085made within 30 days after formal approval by the department.
2086     f.  The Florida Energy and Climate Commission may adopt the
2087form for the application for a certificate, requirements for the
2088content and format of information submitted to the Florida
2089Energy and Climate Commission in support of the application,
2090other procedural requirements, and criteria by which the
2091application will be determined by rule. The department may adopt
2092all other rules pursuant to ss. 120.536(1) and 120.54 to
2093administer this paragraph, including rules establishing
2094additional forms and procedures for claiming this exemption.
2095     g.  The Florida Energy and Climate Commission shall be
2096responsible for ensuring that the total amounts of the
2097exemptions authorized do not exceed the limits as specified in
2098subparagraph 2.
2099     5.  The Florida Energy and Climate Commission shall
2100determine and publish on a regular basis the amount of sales tax
2101funds remaining in each fiscal year.
2102     6.  This paragraph expires July 1, 2010.
2103     Section 36.  Section 570.074, Florida Statutes, is amended
2104to read:
2105     570.074  Department of Agriculture and Consumer Services;
2106energy and water policy coordination.-The commissioner may
2107create an Office of Energy and Water Coordination under the
2108supervision of a senior manager exempt under s. 110.205 in the
2109Senior Management Service. The commissioner may designate the
2110bureaus and positions in the various organizational divisions of
2111the department that report to this office relating to any matter
2112over which the department has jurisdiction in matters relating
2113to energy and water policy affecting agriculture, application of
2114such policies, and coordination of such matters with state and
2115federal agencies.
2116     Section 37.  Sections 366.85, 377.806, and 526.207, Florida
2117Statutes, are repealed.
2118     Section 38.  This act shall take effect July 1, 2011.


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