CS/HB 7229

1	A bill to be entitled
2	An act relating to economic incentives for energy
3	initiatives; amending s. 377.601, F.S.; revising
4	legislative intent relating to the state's energy policy;
5	amending s. 377.703, F.S.; conforming cross-references;
6	creating s. 366.90, F.S.; providing legislative intent
7	relating to renewable energy production of electricity;
8	amending s. 366.91, F.S.; deleting legislative intent
9	provisions to conform to changes made by the act; revising
10	the definition of the terms "biomass"; amending s. 366.92,
11	F.S.; establishing the Agriculture and Clean Energy
12	Economic Development Pilot Project; providing that certain
13	electric energy be considered renewable energy under the
14	pilot project; amending s. 366.92, F.S.; deleting the
15	legislative intent provisions; deleting and revising
16	definitions; deleting provisions for the renewable
17	portfolio standard and renewable energy credits; providing
18	a mechanism for providers to recover costs to produce or
19	purchase specified amounts of renewable energy through the
20	environmental cost-recovery clause under certain
21	conditions; requiring providers to include specified
22	information related to renewable energy development in a
23	certain report; authorizing a developer of solar energy
24	generation to locate a solar energy generation facility on
25	the premises of a host consumer under certain
26	circumstances; requiring the commission to adopt rules and
27	submit reports to the Legislature; amending s. 403.44,
28	F.S.; revising legislative intent for the Florida Climate
29	Protection Act; prohibiting the Department of
30	Environmental Protection from adopting a cap-and-trade
31	regulatory program or otherwise regulating carbon
32	emissions in the state; amending s. 366.8255, F.S.;
33	conforming a provision to changes made by the act;
34	amending s. 403.503, F.S.; revising the definition of
35	"electrical power plant" for purposes of the Florida
36	Electrical Power Plant Siting Act; amending ss. 288.9602
37	and 288.9603, F.S.; revising legislative findings and
38	declarations and definitions for purposes of the Florida
39	Development Finance Corporation Act; amending s. 288.9604,
40	F.S.; revising requirements for the establishment and
41	organization of the Florida Development Finance
42	Corporation; amending s. 288.9605, F.S.; revising the
43	powers of the corporation; amending s. 288.9606, F.S.;
44	revising requirements for the corporation's issuance of
45	revenue bonds; amending s. 288.9607, F.S.; limiting the
46	corporation's approval of guaranties for debt service for
47	bonds or other indebtedness for any one capital project;
48	deleting provisions for the corporation's investment of
49	certain funds in the State Transportation Trust Fund;
50	authorizing guarantees to be used in conjunction with
51	federal guaranty programs; amending s. 288.9608, F.S.;
52	creating the Energy, Technology, and Economic Development
53	Guaranty Fund; providing for the deposit and use of
54	certain moneys in the fund; deleting requirements for the
55	corporation's debt service reserve account and Revenue
56	Bond Guaranty Reserve Account; amending ss. 288.9609,
57	288.9610, 206.46, 215.47, 339.08, and 339.135, F.S.;
58	conforming provisions to changes made by the act;
59	providing for severability; providing an effective date.
60
61	Be It Enacted by the Legislature of the State of Florida:
62
63	Section 1.  Section 377.601, Florida Statutes, is amended
64	to read:
65	377.601  Legislative intent.-
66	(1)  The purpose of the state's energy policy is to ensure
67	an adequate and reliable supply of energy for the state in a
68	manner that promotes the health and welfare of the public,
69	promotes sustainable economic growth, and minimizes and
70	mitigates any adverse impacts. The Legislature intends that
71	governance of the state's energy policy be efficiently directed
72	toward achieving this purpose. The Legislature finds that the
73	state's energy security can be increased by lessening dependence
74	on foreign oil; that the impacts of global climate change can be
75	reduced through the reduction of greenhouse gas emissions; and
76	that the implementation of alternative energy technologies can
77	be a source of new jobs and employment opportunities for many
78	Floridians. The Legislature further finds that the state is
79	positioned at the front line against potential impacts of global
80	climate change. Human and economic costs of those impacts can be
81	averted by global actions and, where necessary, adapted to by a
82	concerted effort to make Florida's communities more resilient
83	and less vulnerable to these impacts. In focusing the
84	government's policy and efforts to benefit and protect our
85	state, its citizens, and its resources, the Legislature believes
86	that a single government entity with a specific focus on energy
87	and climate change is both desirable and advantageous. Further,
88	the Legislature finds that energy infrastructure provides the
89	foundation for secure and reliable access to the energy supplies
90	and services on which Florida depends. Therefore, there is
91	significant value to Florida consumers that comes from
92	investment in Florida's energy infrastructure that increases
93	system reliability, enhances energy independence and
94	diversification, stabilizes energy costs, and reduces greenhouse
95	gas emissions.
96	(2)  In furtherance of this purpose, the state's energy
97	policy shall be implemented through effective, efficient, and
98	reliable governance and shall be guided by the following goals
99	in order of their priority:
100	(a)  Ensuring an affordable energy supply.
101	(b)  Ensuring adequate supply and capacity.
102	(c)  Ensuring a secure and reliable energy supply.
103	(d)  Minimizing energy cost volatility.
104	(e)  Minimizing the negative impacts of energy production
105	on the state's environment, social fabric, and the public health
106	and welfare.
107	(f)  Maximizing economic synergies for the state associated
108	with its energy policy.
109	(g)  Reducing the net export of energy expenditures.
110	(3)  It is further the policy of the state of Florida to:
111	(a)  Develop and promote the effective use of energy in the
112	state, discourage all forms of energy waste, and recognize and
113	address the potential of global climate change wherever
114	possible.
115	(b)  Play a leading role in developing and instituting
116	energy management programs aimed at promoting energy
117	conservation, energy security, and the reduction of greenhouse
118	gas emissions.
119	(c)  Include energy considerations in all state, regional,
120	and local planning.
121	(d)  Utilize and manage effectively energy resources used
122	within state agencies.
123	(e)  Encourage local governments to include energy
124	considerations in all planning and to support their work in
125	promoting energy management programs.
126	(f)  Include the full participation of citizens in the
127	development and implementation of energy programs.
128	(g)  Consider in its decisions the energy needs of each
129	economic sector, including residential, industrial, commercial,
130	agricultural, and governmental uses, and reduce those needs
131	whenever possible.
132	(h)  Promote energy education and the public dissemination
133	of information on energy and its environmental, economic, and
134	social impact.
135	(i)  Encourage the research, development, demonstration,
136	and application of alternative energy resources, particularly
137	renewable energy resources.
138	(j)  Consider, in its decisionmaking, the social, economic,
139	and environmental impacts of energy-related activities,
140	including the whole-life-cycle impacts of any potential energy
141	use choices, so that detrimental effects of these activities are
142	understood and minimized.
143	(k)  Develop and maintain energy emergency preparedness
144	plans to minimize the effects of an energy shortage within
145	Florida.
146	Section 2.  Subsection (1) and paragraph (f) of subsection
147	(2) of section 377.703, Florida Statutes, is amended to read:
148	377.703  Additional functions of the Florida Energy and
149	Climate Commission.-
150	(1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
151	demand questions have become a major area of concern to the
152	state which must be dealt with by effective and well-coordinated
153	state action, it is the intent of the Legislature to promote the
154	efficient, effective, and economical management of energy
155	problems, centralize energy coordination responsibilities,
156	pinpoint responsibility for conducting energy programs, and
157	ensure the accountability of state agencies for the
158	implementation of s. 377.601(2), the state energy policy. It is
159	the specific intent of the Legislature that nothing in this act
160	shall in any way change the powers, duties, and responsibilities
161	assigned by the Florida Electrical Power Plant Siting Act, part
162	II of chapter 403, or the powers, duties, and responsibilities
163	of the Florida Public Service Commission.
164	(2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
165	commission shall perform the following functions consistent with
166	the development of a state energy policy:
167	(f)  The commission shall submit an annual report to the
168	Governor and the Legislature reflecting its activities and
169	making recommendations of policies for improvement of the
170	state's response to energy supply and demand and its effect on
171	the health, safety, and welfare of the people of Florida. The
172	report shall include a report from the Florida Public Service
173	Commission on electricity and natural gas and information on
174	energy conservation programs conducted and underway in the past
175	year and shall include recommendations for energy conservation
176	programs for the state, including, but not limited to, the
177	following factors:
178	1.  Formulation of specific recommendations for improvement
179	in the efficiency of energy utilization in governmental,
180	residential, commercial, industrial, and transportation sectors.
181	2.  Collection and dissemination of information relating to
182	energy conservation.
183	3.  Development and conduct of educational and training
184	programs relating to energy conservation.
185	4.  An analysis of the ways in which state agencies are
186	seeking to implement s. 377.601(2), the state energy policy, and
187	recommendations for better fulfilling this policy.
188	Section 3.  Section 366.90, Florida Statutes, is created to
189	read:
190	366.90  Renewable energy for electricity production.-In
191	furtherance of the energy policy goals established in s.
192	377.601, the Legislature finds that it is in the public interest
193	to promote the development of renewable energy resources in the
194	state, for purposes of electricity production, through the
195	mechanisms established in ss. 366.91 and 366.92. The Legislature
196	further finds that renewable energy resources have the potential
197	to help diversify fuel types to alleviate the state's growing
198	dependence on natural gas and other fossil fuels for the
199	production of electricity, minimize the volatility of fuel
200	costs, encourage investment within the state, improve
201	environmental conditions, and make the state a leader in new and
202	innovative technologies.
203	Section 4.  Subsection (1) and paragraph (a) of subsection
204	(2) of section 366.91, Florida Statutes, are amended, and
205	subsections (2) through (8) of that section are renumbered as
206	subsections (1) through (7), respectively, to read:
207	366.91  Renewable energy.-
208	(1)  The Legislature finds that it is in the public
209	interest to promote the development of renewable energy
210	resources in this state. Renewable energy resources have the
211	potential to help diversify fuel types to meet Florida's growing
212	dependency on natural gas for electric production, minimize the
213	volatility of fuel costs, encourage investment within the state,
214	improve environmental conditions, and make Florida a leader in
215	new and innovative technologies.
216	(1)(2)  As used in this section, the term:
217	(a)  "Biomass" means a power source that is comprised of,
218	but not limited to, combustible residues or gases from forest
219	products manufacturing, waste, byproducts, or products from
220	agricultural and orchard crops, waste or coproducts from
221	livestock and poultry operations, waste or byproducts from food
222	processing, recycling byproducts, urban wood waste, municipal
223	solid waste, municipal liquid waste treatment operations, and
224	landfill gas.
225	Section 5.  Section 366.92, Florida Statutes, is amended to
226	read:
227	366.92  Florida renewable energy policy.-
228	(1)  It is the intent of the Legislature to promote the
229	development of renewable energy; protect the economic viability
230	of Florida's existing renewable energy facilities; diversify the
231	types of fuel used to generate electricity in Florida; lessen
232	Florida's dependence on natural gas and fuel oil for the
233	production of electricity; minimize the volatility of fuel
234	costs; encourage investment within the state; improve
235	environmental conditions; and, at the same time, minimize the
236	costs of power supply to electric utilities and their customers.
237	(1)(2)  As used in this section, the term:
238	(a)  "Florida renewable energy resources" means renewable
239	energy, as defined in s. 377.803, that is produced in Florida.
240	(a)(b)  "Provider" means a "utility" as defined in s.
241	366.8255(1)(a).
242	(b)(c)  "Renewable energy" means renewable energy as
243	defined in s. 366.91(2)(d) that is produced in the state.
244	(d)  "Renewable energy credit" or "REC" means a product
245	that represents the unbundled, separable, renewable attribute of
246	renewable energy produced in Florida and is equivalent to 1
247	megawatt-hour of electricity generated by a source of renewable
248	energy located in Florida.
249	(e)  "Renewable portfolio standard" or "RPS" means the
250	minimum percentage of total annual retail electricity sales by a
251	provider to consumers in Florida that shall be supplied by
252	renewable energy produced in Florida.
253	(3)  The commission shall adopt rules for a renewable
254	portfolio standard requiring each provider to supply renewable
255	energy to its customers directly, by procuring, or through
256	renewable energy credits. In developing the RPS rule, the
257	commission shall consult the Department of Environmental
258	Protection and the Florida Energy and Climate Commission. The
259	rule shall not be implemented until ratified by the Legislature.
260	The commission shall present a draft rule for legislative
261	consideration by February 1, 2009.
262	(a)  In developing the rule, the commission shall evaluate
263	the current and forecasted levelized cost in cents per kilowatt
264	hour through 2020 and current and forecasted installed capacity
265	in kilowatts for each renewable energy generation method through
266	2020.
267	(b)  The commission's rule:
268	1.  Shall include methods of managing the cost of
269	compliance with the renewable portfolio standard, whether
270	through direct supply or procurement of renewable power or
271	through the purchase of renewable energy credits. The commission
272	shall have rulemaking authority for providing annual cost
273	recovery and incentive-based adjustments to authorized rates of
274	return on common equity to providers to incentivize renewable
275	energy. Notwithstanding s. 366.91(3) and (4), upon the
276	ratification of the rules developed pursuant to this subsection,
277	the commission may approve projects and power sales agreements
278	with renewable power producers and the sale of renewable energy
279	credits needed to comply with the renewable portfolio standard.
280	In the event of any conflict, this subparagraph shall supersede
281	s. 366.91(3) and (4). However, nothing in this section shall
282	alter the obligation of each public utility to continuously
283	offer a purchase contract to producers of renewable energy.
284	2.  Shall provide for appropriate compliance measures and
285	the conditions under which noncompliance shall be excused due to
286	a determination by the commission that the supply of renewable
287	energy or renewable energy credits was not adequate to satisfy
288	the demand for such energy or that the cost of securing
289	renewable energy or renewable energy credits was cost
290	prohibitive.
291	3.  May provide added weight to energy provided by wind and
292	solar photovoltaic over other forms of renewable energy, whether
293	directly supplied or procured or indirectly obtained through the
294	purchase of renewable energy credits.
295	4.  Shall determine an appropriate period of time for which
296	renewable energy credits may be used for purposes of compliance
297	with the renewable portfolio standard.
298	5.  Shall provide for monitoring of compliance with and
299	enforcement of the requirements of this section.
300	6.  Shall ensure that energy credited toward compliance
301	with the requirements of this section is not credited toward any
302	other purpose.
303	7.  Shall include procedures to track and account for
304	renewable energy credits, including ownership of renewable
305	energy credits that are derived from a customer-owned renewable
306	energy facility as a result of any action by a customer of an
307	electric power supplier that is independent of a program
308	sponsored by the electric power supplier.
309	8.  Shall provide for the conditions and options for the
310	repeal or alteration of the rule in the event that new
311	provisions of federal law supplant or conflict with the rule.
312	(c)  Beginning on April 1 of the year following final
313	adoption of the commission's renewable portfolio standard rule,
314	each provider shall submit a report to the commission describing
315	the steps that have been taken in the previous year and the
316	steps that will be taken in the future to add renewable energy
317	to the provider's energy supply portfolio. The report shall
318	state whether the provider was in compliance with the renewable
319	portfolio standard during the previous year and how it will
320	comply with the renewable portfolio standard in the upcoming
321	year.
322	(2)(4)  Subject to the provisions of this subsection In
323	order to demonstrate the feasibility and viability of clean
324	energy systems, the commission shall provide for full cost
325	recovery under the environmental cost-recovery clause of all
326	reasonable and prudent costs incurred by a provider to produce
327	or purchase for renewable energy for purposes of supplying
328	electrical energy to its retail customers projects that are zero
329	greenhouse gas emitting at the point of generation, up to a
330	total of 110 megawatts statewide, and for which the provider has
331	secured necessary land, zoning permits, and transmission rights
332	within the state. Such costs shall be deemed reasonable and
333	prudent for purposes of cost recovery so long as the provider
334	has used reasonable and customary industry practices in the
335	design, procurement, and construction of the project in a cost-
336	effective manner appropriate to the location of the facility.
337	The provider shall report to the commission as part of the cost-
338	recovery proceedings the construction costs, in-service costs,
339	operating and maintenance costs, hourly energy production of the
340	renewable energy project, and any other information deemed
341	relevant by the commission. Any provider constructing a clean
342	energy facility pursuant to this section shall file for cost
343	recovery no later than July 1, 2009.
344	(a)  A provider may petition the commission for recovery of
345	costs to produce or purchase renewable energy, subject to the
346	cost cap in paragraph (c). The provider has sole discretion to
347	determine the type and technology of the renewable energy
348	resource that it intends to use. However, at least 20 percent of
349	the total nameplate capacity for which a provider is permitted
350	to recover costs in any calendar year under this subsection must
351	be produced or purchased from renewable energy sources other
352	than solar energy. No later than when a provider files a
353	petition for cost recovery under this subsection, the provider
354	must file with the commission a schedule of planned production
355	and purchases for the calendar year in which cost recovery is
356	requested. If any portion of the capacity required from nonsolar
357	renewable energy resources is committed but, for reasons found
358	by the commission to be beyond the control of the provider, is
359	not available during the calendar year for which cost recovery
360	is requested, the provider may continue to recover costs to
361	produce or purchase renewable energy from solar energy resources
362	if the provider continues in good faith to pursue the production
363	or purchase of renewable energy from nonsolar resources. The
364	provider has sole discretion to determine whether to construct
365	new renewable energy generating facilities, convert existing
366	fossil fuel generating facilities to renewable energy generating
367	facilities, or contract for the purchase of renewable energy
368	from third-party generating facilities in the state.
369	(b)  In addition to the full cost recovery for such
370	renewable energy projects, a return on equity of at least 50
371	basis points above the top of the range of the provider's last
372	authorized rate of return on equity approved by the commission
373	for energy projects shall be approved and provided for such
374	renewable energy projects if a majority value of the energy-
375	producing components incorporated into such projects are
376	manufactured or assembled in the state.
377	(c)  For the production or purchase of renewable energy
378	under this subsection, a provider may recover costs up to and in
379	excess of its full avoided cost, as defined in s. 366.051 and
380	approved by the commission, if the recovery of costs in excess
381	of the provider's full avoided cost does not exceed, as a
382	percentage of the provider's total revenues from the retail sale
383	of electricity for calendar year 2009, the total cumulative
384	amount of 2 percent in calendar years 2010 and 2011, the total
385	cumulative amount of 3 percent in calendar year 2012, and the
386	total cumulative amount of 4 percent in calendar year 2013 and
387	thereafter. For purposes of cost recovery under this subsection,
388	costs shall be computed using a methodology that, for a
389	renewable energy generating facility, averages the revenue
390	requirements of the facility over its economic life and, for a
391	renewable energy purchase, averages the revenue requirements of
392	the purchase over the life of the contract.
393	(d)  Cost recovery under this subsection is limited to new
394	construction or conversion projects for which construction is
395	commenced on or after July 1, 2010, and to purchases made on or
396	after that date. All renewable energy projects for which costs
397	are approved by the commission for recovery through the
398	environmental cost recovery clause before July 1, 2010, are not
399	subject to or included in the calculation of the cost cap.
400	(e)  The costs incurred by a provider to produce or
401	purchase renewable energy under this subsection are deemed to be
402	prudent for purposes of cost recovery if the provider uses
403	reasonable and customary industry practices in the design,
404	procurement, and construction of the project in a cost-effective
405	manner for the type of renewable energy resource and appropriate
406	to the location of the facility.
407	(f)  Subject to the cost cap in paragraph (c), the
408	commission shall allow a provider to recover the costs
409	associated with the production or purchase of renewable energy
410	under this subsection as follows:
411	1.  For new renewable energy generating facilities, the
412	commission shall allow recovery of reasonable and prudent costs,
413	including, but not limited to, the siting, licensing,
414	engineering, design, permitting, construction, operation, and
415	maintenance of such facilities, including any applicable taxes
416	and a return based on the provider's last authorized rate of
417	return.
418	2.  For conversion of existing fossil fuel generating
419	facilities to renewable energy generating facilities, the
420	commission shall allow recovery of reasonable and prudent
421	conversion costs, including the costs of retirement of the
422	fossil fuel plant that exceed any amounts accrued by the
423	provider for such purposes through rates previously set by the
424	commission.
425	3.  For purchase of renewable energy from third-party
426	generating facilities in the state, the commission shall allow
427	recovery of reasonable and prudent costs associated with the
428	purchase. Any petition for approval of a purchased power
429	agreement for renewable energy that is filed with the commission
430	before April 2, 2010, and remains pending on July 1, 2010, shall
431	be considered by the commission to have been filed in accordance
432	with, and shall be subject to the provisions of, this
433	subsection.
434	(g)  In a proceeding to recover costs incurred under this
435	subsection, a provider must provide the commission all cost
436	information, hourly energy production information, and other
437	information deemed relevant by the commission with respect to
438	each project.
439	(h)  When a provider purchases renewable energy under this
440	subsection at a cost in excess of its full avoided cost, the
441	seller must surrender to the provider all renewable attributes
442	of the renewable energy purchased.
443	(i)  Revenues derived from any renewable energy credit,
444	carbon credit, or other mechanism that attributes value to the
445	production of renewable energy, either existing or hereafter
446	devised, received by a provider by virtue of the production or
447	purchase of renewable energy for which cost recovery is approved
448	under this subsection shall be shared with the provider's
449	ratepayers such that the ratepayers are credited at least 75
450	percent of such revenues.
451	(j)  Section 403.519 does not apply to a renewable energy
452	generating facility constructed or converted from an existing
453	fossil fuel generating facility under this subsection, and the
454	commission is not required to submit a report for such a project
455	under s. 403.507(4)(a).
456	(3)  Each provider shall, in its 10-year site plan
457	submitted to the commission pursuant to s. 186.801, provide the
458	following information:
459	(a)  The amount of renewable energy resources the provider
460	produces or purchases.
461	(b)  The amount of renewable energy resources the provider
462	plans to produce or purchase over the 10-year planning horizon
463	and the means by which such production or purchases will be
464	achieved.
465	(c)  A statement indicating how the production and purchase
466	of renewable energy resources impact the provider's present and
467	future capacity and energy needs.
468	(4)(5)  Each municipal electric utility and rural electric
469	cooperative shall develop standards for the promotion,
470	encouragement, and expansion of the use of renewable energy
471	resources and energy conservation and efficiency measures. On or
472	before April 1, 2009, and annually thereafter, each municipal
473	electric utility and electric cooperative shall submit to the
474	commission a report that identifies such standards.
475	(5)(6)  Nothing in This section and any action taken under
476	this section may not shall be construed to impede or impair the
477	terms and conditions of, or serve as a basis for renegotiating
478	or repricing, an existing contract contracts.
479	(6)  There is created the Agriculture and Clean Energy
480	Economic Development Pilot Project. In order to promote economic
481	development in the agriculture community by demonstrating the
482	viability of clean energy farming, any energy purchased by a
483	municipal electric utility or a rural electric cooperative from
484	a new electric generating facility with a minimum system
485	efficiency of 75 percent that utilizes waste heat and carbon for
486	the purpose of growing agriculture in greenhouse facilities
487	shall be considered renewable energy for up to 65 megawatts for
488	a single pilot project.
489	(7)  The commission may adopt rules to administer and
490	implement the provisions of this section.
491	Section 6.  Section 403.44, Florida Statutes, is amended to
492	read:
493	403.44  Florida Climate Protection Act.-
494	(1)  The Legislature finds that it is in the best interest
495	of the state to address carbon emissions through comprehensive
496	national or international measures and that it is contrary to
497	the economic and environmental well-being of the state to pursue
498	or authorize carbon emissions regulation. The Legislature
499	further finds that carbon emissions regulation by the state is
500	inconsistent with the goals of developing an affordable,
501	adequate, and reliable supply of energy document, to the
502	greatest extent practicable, greenhouse gas emissions and to
503	pursue a market-based emissions abatement program, such as cap
504	and trade, to address greenhouse gas emissions reductions.
505	(2)  As used in this section, the term:
506	(a)  "Allowance" means a credit issued by the department
507	through allotments or auction which represents an authorization
508	to emit specific amounts of greenhouse gases, as further defined
509	in department rule.
510	(b)  "Cap and trade" or "emissions trading" means an
511	administrative approach used to control pollution by providing a
512	limit on total allowable emissions, providing for allowances to
513	emit pollutants, and providing for the transfer of the
514	allowances among pollutant sources as a means of compliance with
515	emission limits.
516	(c)  "Greenhouse gas" or "GHG" means carbon dioxide,
517	methane, nitrous oxide, and fluorinated gases such as
518	hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
519	(d)  "Leakage" means the offset of emission abatement that
520	is achieved in one location subject to emission control
521	regulation by increased emissions in unregulated locations.
522	(e)  "Major emitter" means an electric utility regulated
523	under this chapter.
524	(3)  A major emitter shall be required to use The Climate
525	Registry for purposes of emission registration and reporting.
526	(4)  The department shall establish the methodologies,
527	reporting periods, and reporting systems that shall be used when
528	major emitters report to The Climate Registry. The department
529	may require the use of quality-assured data from continuous
530	emissions monitoring systems.
531	(2)(5)  The department may not adopt rules for a cap-and-
532	trade regulatory program or otherwise regulate carbon to reduce
533	greenhouse gas emissions in this state from major
534	developing the rules, the department shall consult with the
535	Florida Energy and Climate Commission and the Florida Public
536	Service Commission and may consult with the Governor's Action
537	Team for Energy and Climate Change. The department shall not
538	adopt rules until after January 1, 2010. The rules shall not
539	become effective until ratified by the Legislature.
540	(6)  The rules of the cap-and-trade regulatory program
541	shall include, but are not limited to:
542	(a)  A statewide limit or cap on the amount of greenhouse
543	gases emitted by major emitters.
544	(b)  Methods, requirements, and conditions for allocating
545	the cap among major emitters.
546	(c)  Methods, requirements, and conditions for emissions
547	allowances and the process for issuing emissions allowances.
548	(d)  The relationship between allowances and the specific
549	amounts of greenhouse gas emissions they represent.
550	(e)  The length of allowance periods and the time over
551	which entities must account for emissions and surrender
552	allowances equal to emissions.
553	(f)  The timeline of allowances from the initiation of the
554	program through to 2050.
555	(g)  A process for the trade of allowances between major
556	emitters, including a registry, tracking, or accounting system
557	for such trades.
558	(h)  Cost containment mechanisms to reduce price and cost
559	risks associated with the electric generation market in this
560	state. Cost containment mechanisms to be considered for
561	inclusion in the rules include, but are not limited to:
562	1.  Allowing major emitters to borrow allowances from
563	future time periods to meet their greenhouse gas emission
564	limits.
565	2.  Allowing major emitters to bank greenhouse gas emission
566	reductions in the current year to be used to meet emission
567	limits in future years.
568	3.  Allowing major emitters to purchase emissions offsets
569	from other entities that produce verifiable reductions in
570	unregulated greenhouse gas emissions or that produce verifiable
571	reductions in greenhouse gas emissions through voluntary
572	practices that capture and store greenhouse gases that otherwise
573	would be released into the atmosphere. In considering this cost
574	containment mechanism, the department shall identify sectors and
575	activities outside of the capped sectors, including other state,
576	federal, or international activities, and the conditions under
577	which reductions there can be credited against emissions of
578	capped entities in place of allowances issued by the department.
579	The department shall also consider potential methods and their
580	effectiveness to avoid double-incentivizing such activities.
581	4.  Providing a safety valve mechanism to ensure that the
582	market prices for allowances or offsets do not surpass a
583	predetermined level compatible with the affordability of
584	electric utility rates and the well-being of the state's
585	economy. In considering this cost containment mechanism, the
586	department shall evaluate different price levels for the safety
587	valve and methods to change the price level over time to reflect
588	changing state, federal, and international markets, regulatory
589	environments, and technological advancements.
590
591	In considering cost containment mechanisms for inclusion in the
592	rules, the department shall evaluate the anticipated overall
593	effect of each mechanism on the abatement of greenhouse gas
594	emissions and on electricity ratepayers and the benefits and
595	costs of each to the state's economy, and shall also consider
596	the interrelationships between the mechanisms under
597	consideration.
598	(i)  A process to allow the department to exercise its
599	authority to discourage leakage of GHG emissions to neighboring
600	states attributable to the implementation of this program.
601	(j)  Provisions for a trial period on the trading of
602	allowances before full implementation of a trading system.
603	(7)  In recommending and evaluating proposed features of
604	the cap-and-trade system, the following factors shall be
605	considered:
606	(a)  The overall cost-effectiveness of the cap-and-trade
607	system in combination with other policies and measures in
608	meeting statewide targets.
609	(b)  Minimizing the administrative burden to the state of
610	implementing, monitoring, and enforcing the program.
611	(c)  Minimizing the administrative burden on entities
612	covered under the cap.
613	(d)  The impacts on electricity prices for consumers.
614	(e)  The specific benefits to the state's economy for early
615	adoption of a cap-and-trade system for greenhouse gases in the
616	context of federal climate change legislation and the
617	development of new international compacts.
618	(f)  The specific benefits to the state's economy
619	associated with the creation and sale of emissions offsets from
620	economic sectors outside of the emissions cap.
621	(g)  The potential effects on leakage if economic activity
622	relocates out of the state.
623	(h)  The effectiveness of the combination of measures in
624	meeting identified targets.
625	(i)  The implications for near-term periods of long-term
626	targets specified in the overall policy.
627	(j)  The overall costs and benefits of a cap-and-trade
628	system to the state economy.
629	(k)  How to moderate impacts on low-income consumers that
630	result from energy price increases.
631	(l)  Consistency of the program with other state and
632	possible federal efforts.
633	(m)  The feasibility and cost-effectiveness of extending
634	the program scope as broadly as possible among emitting
635	activities and sinks in Florida.
636	(n)  Evaluation of the conditions under which Florida
637	should consider linking its trading system to the systems of
638	other states or other countries and how that might be affected
639	by the potential inclusion in the rule of a safety valve.
640	(8)  Recognizing that the international, national, and
641	neighboring state policies and the science of climate change
642	will evolve, prior to submitting the proposed rules to the
643	Legislature for consideration, the department shall submit the
644	proposed rules to the Florida Energy and Climate Commission,
645	which shall review the proposed rules and submit a report to the
646	Governor, the President of the Senate, the Speaker of the House
647	of Representatives, and the department. The report shall
648	address:
649	(a)  The overall cost-effectiveness of the proposed cap-
650	and-trade system in combination with other policies and measures
651	in meeting statewide targets.
652	(b)  The administrative burden to the state of
653	implementing, monitoring, and enforcing the program.
654	(c)  The administrative burden on entities covered under
655	the cap.
656	(d)  The impacts on electricity prices for consumers.
657	(e)  The specific benefits to the state's economy for early
658	adoption of a cap-and-trade system for greenhouse gases in the
659	context of federal climate change legislation and the
660	development of new international compacts.
661	(f)  The specific benefits to the state's economy
662	associated with the creation and sale of emissions offsets from
663	economic sectors outside of the emissions cap.
664	(g)  The potential effects on leakage if economic activity
665	relocates out of the state.
666	(h)  The effectiveness of the combination of measures in
667	meeting identified targets.
668	(i)  The economic implications for near-term periods of
669	short-term and long-term targets specified in the overall
670	policy.
671	(j)  The overall costs and benefits of a cap-and-trade
672	system to the economy of the state.
673	(k)  The impacts on low-income consumers that result from
674	energy price increases.
675	(l)  The consistency of the program with other state and
676	possible federal efforts.
677	(m)  The evaluation of the conditions under which the state
678	should consider linking its trading system to the systems of
679	other states or other countries and how that might be affected
680	by the potential inclusion in the rule of a safety valve.
681	(n)  The timing and changes in the external environment,
682	such as proposals by other states or implementation of a federal
683	program that would spur reevaluation of the Florida program.
684	(o)  The conditions and options for eliminating the Florida
685	program if a federal program were to supplant it.
686	(p)  The need for a regular reevaluation of the progress of
687	other emitting regions of the country and of the world, and
688	whether other regions are abating emissions in a commensurate
689	manner.
690	(q)  The desirability of and possibilities of broadening
691	the scope of the state's cap-and-trade system at a later date to
692	include more emitting activities as well as sinks in Florida,
693	the conditions that would need to be met to do so, and how the
694	program would encourage these conditions to be met, including
695	developing monitoring and measuring techniques for land use
696	emissions and sinks, regulating sources upstream, and other
697	considerations.
698	Section 7.  Paragraph (d) of subsection (1) of section
699	366.8255, Florida Statutes, is amended to read:
700	366.8255  Environmental cost recovery.-
701	(1)  As used in this section, the term:
702	(d)  "Environmental compliance costs" includes all costs or
703	expenses incurred by an electric utility in complying with
704	environmental laws or regulations, including, but not limited
705	to:
706	1.  Inservice capital investments, including the electric
707	utility's last authorized rate of return on equity thereon.
708	2.  Operation and maintenance expenses.
709	3.  Fuel procurement costs.
710	4.  Purchased power costs.
711	5.  Emission allowance costs.
712	6.  Direct taxes on environmental equipment.
713	7.  Costs or expenses prudently incurred by an electric
714	utility pursuant to an agreement entered into on or after the
715	effective date of this act and prior to October 1, 2002, between
716	the electric utility and the Florida Department of Environmental
717	Protection or the United States Environmental Protection Agency
718	for the exclusive purpose of ensuring compliance with ozone
719	ambient air quality standards by an electrical generating
720	facility owned by the electric utility.
721	8.  Costs or expenses prudently incurred for the
722	quantification, reporting, and third-party verification as
723	required for participation in greenhouse gas emission registries
724	for greenhouse gases as defined in s. 403.44. As used in this
725	subparagraph, the term "greenhouse gases" means carbon dioxide,
726	methane, nitrous oxide, and fluorinated gases such as
727	hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
728	9.  Costs or expenses prudently incurred for scientific
729	research and geological assessments of carbon capture and
730	storage conducted in this state for the purpose of reducing an
731	electric utility's greenhouse gas emissions when such costs or
732	expenses are incurred in joint research projects with Florida
733	state government agencies and Florida state universities.
734	Section 8.  Subsection (14) of section 403.503, Florida
735	Statutes, is amended to read:
736	403.503  Definitions relating to Florida Electrical Power
737	Plant Siting Act.-As used in this act:
738	(14)  "Electrical power plant" means, for the purpose of
739	certification, any steam or solar electrical generating facility
740	using any process or fuel, including nuclear materials, except
741	that this term does not include any steam or solar electrical
742	generating facility of less than 75 megawatts in capacity or any
743	solar electrical generating facility of any sized capacity
744	unless the applicant for such a facility elects to apply for
745	certification under this act. This term also includes the site;
746	all associated facilities that will be owned by the applicant
747	that are physically connected to the site; all associated
748	facilities that are indirectly connected to the site by other
749	proposed associated facilities that will be owned by the
750	applicant; and associated transmission lines that will be owned
751	by the applicant which connect the electrical power plant to an
752	existing transmission network or rights-of-way to which the
753	applicant intends to connect. At the applicant's option, this
754	term may include any offsite associated facilities that will not
755	be owned by the applicant; offsite associated facilities that
756	are owned by the applicant but that are not directly connected
757	to the site; any proposed terminal or intermediate substations
758	or substation expansions connected to the associated
759	transmission line; or new transmission lines, upgrades, or
760	improvements of an existing transmission line on any portion of
761	the applicant's electrical transmission system necessary to
762	support the generation injected into the system from the
763	proposed electrical power plant.
764	Section 9.  Section 288.9602, Florida Statutes, is amended
765	to read:
766	288.9602  Findings and declarations of necessity.-The
767	Legislature finds and declares that:
768	(1)  There is a need to enhance economic activity in the
769	cities and counties of the state by attracting manufacturing,
770	development, redevelopment of brownfield areas, business
771	enterprise management, and other activities conducive to
772	economic promotion in order to provide a stronger, more
773	balanced, and stable economy in the cities and counties of the
774	state.
775	(2)  A significant portion of businesses located in the
776	cities and counties of the state or desiring to locate in the
777	cities and counties of the state encounter difficulty in
778	obtaining financing on terms competitive with those available to
779	businesses located in other states and nations or are unable to
780	obtain such financing at all.
781	(3)  The difficulty in obtaining such financing impairs the
782	expansion of economic activity and the creation of jobs and
783	income in communities throughout the state.
784	(4)  The businesses most often affected by these financing
785	difficulties are small businesses critical to the economic
786	development of the state cities and counties of Florida.
787	(5)  The economic well-being of the people in, and the
788	commercial and industrial resources of, the cities and counties
789	of the state would be enhanced by the provision of financing to
790	businesses on terms competitive with those available in the most
791	developed financial markets worldwide.
792	(6)  In order to improve the prosperity and welfare of the
793	cities and counties of this state and its inhabitants, to
794	improve and promote the financing of projects related to the
795	economic development of the cities and counties of this state,
796	including redevelopment of brownfield areas, and to increase the
797	purchasing power and opportunities for gainful employment of
798	citizens of the cities and counties of this state, it is
799	necessary and in the public interest to facilitate the financing
800	of such projects as provided for in this act and to do so
801	without regard to the boundaries between counties,
802	municipalities, special districts, and other local governmental
803	bodies or agencies in order to more effectively and efficiently
804	serve the interests of the greatest number of people in the
805	widest area practicable.
806	(7)  In order to promote and stimulate development and
807	advance the business prosperity and economic welfare of the
808	cities and counties of this state and its inhabitants; to
809	encourage and assist new business and industry in this state
810	through loans, investments, or other business transactions; to
811	rehabilitate and assist existing businesses; to stimulate and
812	assist in the expansion of all kinds of for-profit and not-for-
813	profit business activity; and to create maximum opportunities
814	for employment, encouragement of thrift, and improvement of the
815	standard of living of the citizens of Florida, it is necessary
816	and in the public interest to facilitate the cooperation and
817	action between organizations, public and private, in the
818	promotion, development, and conduct of all kinds of for-profit
819	and not-for-profit business activity in the state.
820	(8)  In order to efficiently and effectively achieve the
821	purposes of this act, it is necessary and in the public interest
822	to create a special development finance authority to cooperate
823	and act in conjunction with public agencies of this state and
824	local governments of this state, through interlocal agreements
825	pursuant to the Florida Interlocal Cooperation Act of 1969, in
826	the promotion and advancement of projects related to economic
827	development, including redevelopment of brownfield areas,
828	throughout the state.
829	(9)  The purposes to be achieved by the special development
830	finance authority through such projects and such financings of
831	business and industry in compliance with the criteria and the
832	requirements of this act are predominantly the public purposes
833	stated in this section, and such purposes implement the
834	governmental purposes under the State Constitution of providing
835	for the health, safety, and welfare of the people of the state,
836	including implementing the purpose of s. 10(c), Art. VII of the
837	State Constitution and simultaneously provide new and innovative
838	means for the investment of public trust funds in accordance
839	with s. 10(a), Art. VII of the State Constitution.
840	Section 10.  Subsections (6), (11), and (12) of section
841	288.9603, Florida Statutes, are amended to read:
842	288.9603  Definitions.-
843	(6)  "Debt service" shall mean for any bonds issued by the
844	corporation or for any bonds or other form of indebtedness and
845	for which a guaranty has been issued pursuant to ss. 288.9606,
846	288.9607, and 288.9608, for any period for which such
847	determination is to be made, the aggregate amount of all
848	interest charges due or which shall become due on or with
849	respect to such bonds or indebtedness during the period for
850	which such determination is being made, plus the aggregate
851	amount of scheduled principal payments due or which shall become
852	due on or with respect to such bonds or indebtedness during the
853	period for which such determination is being made. Scheduled
854	principal payments may include only principal payments that are
855	scheduled as part of the terms of the original bond or
856	indebtedness issue and that result in the reduction of the
857	outstanding principal balance of the bonds or indebtedness.
858	(11)  "Guaranty agreement" means an agreement by and
859	between the corporation and an applicant a public agency
860	pursuant to the provisions of s. 288.9607.
861	(12)  "Guaranty agreement fund" means the Energy,
862	Technology, and Economic Development Revenue Bond Guaranty Fund
863	Reserve Account established by the corporation pursuant to s.
864	288.9608.
865	Section 11.  Section 288.9604, Florida Statutes, is amended
866	to read:
867	288.9604  Creation of the authority.-
868	(1)  Upon a finding of necessity by a city or county of
869	this state, selected pursuant to subsection (2), There is
870	created a public body corporate and politic known as the
871	"Florida Development Finance Corporation." The corporation shall
872	be constituted as a public instrumentality of local government,
873	and the exercise by the corporation of the powers conferred by
874	this act shall be deemed and held to be the performance of an
875	essential public function. The corporation has the power to
876	function within the corporate limits of any public agency with
877	which it has entered into an interlocal agreement for any of the
878	purposes of this act.
879	(2)  A city or county of Florida shall be selected by a
880	search committee of Enterprise Florida, Inc. This city or county
881	shall be authorized to activate the corporation. The search
882	committee shall be composed of two commercial banking
883	representatives, the Senate member of the partnership, the House
884	of Representatives member of the partnership, and a member who
885	is an industry or economic development professional.
886	(2)(3)  Upon activation of the corporation, The Governor,
887	subject to confirmation by the Senate, shall appoint the board
888	of directors of the corporation, who shall be five in number.
889	The terms of office for the directors shall be for 4 years from
890	the date of their appointment. A vacancy occurring during a term
891	shall be filled for the unexpired term. A director shall be
892	eligible for reappointment. At least three of the directors of
893	the corporation shall be bankers who have been selected by the
894	Governor from a list of bankers who were nominated by Enterprise
895	Florida, Inc., and one of the directors shall be an economic
896	development specialist. The chairperson of the Florida Black
897	Business Investment Board shall be an ex officio member of the
898	board of the corporation.
899	(3)(4)(a)  A director shall receive no compensation for his
900	or her services, but is entitled to the necessary expenses,
901	including travel expenses, incurred in the discharge of his or
902	her duties. Each director shall hold office until his or her
903	successor has been appointed.
904	(b)  The powers of the corporation shall be exercised by
905	the directors thereof. A majority of the directors constitutes a
906	quorum for the purposes of conducting business and exercising
907	the powers of the corporation and for all other purposes. Action
908	may be taken by the corporation upon a vote of a majority of the
909	directors present, unless in any case the bylaws require a
910	larger number. Any person may be appointed as director if he or
911	she resides, or is engaged in business, which means owning a
912	business, practicing a profession, or performing a service for
913	compensation or serving as an officer or director of a
914	corporation or other business entity so engaged, within the
915	state.
916	(c)  The directors of the corporation shall annually elect
917	one of their members as chair and one as vice chair. The
918	corporation may employ a president, technical experts, and such
919	other agents and employees, permanent and temporary, as it
920	requires and determine their qualifications, duties, and
921	compensation. For such legal services as it requires, the
922	corporation may employ or retain its own counsel and legal
923	staff. The corporation shall file with the governing body of
924	each public agency with which it has entered into an interlocal
925	agreement and with the Governor, the Speaker of the House of
926	Representatives, the President of the Senate, the Minority
927	Leaders of the Senate and House of Representatives, and the
928	Auditor General, on or before 90 days after the close of the
929	fiscal year of the corporation, a report of its activities for
930	the preceding fiscal year, which report shall include a complete
931	financial statement setting forth its assets, liabilities,
932	income, and operating expenses as of the end of such fiscal
933	year.
934	(4)(5)  The board may remove a director for inefficiency,
935	neglect of duty, or misconduct in office only after a hearing
936	and only if he or she has been given a copy of the charges at
937	least 10 days before prior to such hearing and has had an
938	opportunity to be heard in person or by counsel. The removal of
939	a director shall create a vacancy on the board which shall be
940	filled pursuant to subsection (4) (3).
941	Section 12.  Section 288.9605, Florida Statutes, is amended
942	to read:
943	288.9605  Corporation powers.-
944	(1)  The powers of the corporation created by s. 288.9604
945	shall include all the powers necessary or convenient to carry
946	out and effectuate the purposes and provisions of this act.
947	(2)  The corporation is authorized and empowered to:
948	(a)  Have perpetual succession as a body politic and
949	corporate and adopt bylaws for the regulation of its affairs and
950	the conduct of its business.
951	(b)  Adopt an official seal and alter the same at its
952	pleasure.
953	(c)  Maintain an office at such place or places as it may
954	designate.
955	(d)  Sue and be sued in its own name and plead and be
956	impleaded.
957	(e)  Enter into interlocal agreements pursuant to s.
958	163.01(7) with public agencies of this state for the exercise of
959	any power, privilege, or authority consistent with the purposes
960	of this act.
961	(f)  Issue, from time to time, revenue bonds, notes, or
962	other evidence of indebtedness, including, but not limited to,
963	taxable bonds and bonds the interest on which is exempt from
964	federal income taxation, for the purpose of financing and
965	refinancing any capital projects that promote economic
966	development within the state, thereby benefitting the citizens
967	of the state, for applicants and exercise all powers in
968	connection with the authorization, issuance, and sale of bonds,
969	subject to the provisions of s. 288.9606.
970	(g)  Issue bond anticipation notes in connection with the
971	authorization, issuance, and sale of such bonds, pursuant to the
972	provisions of s. 288.9606.
973	(h)  Make and execute contracts and other instruments
974	necessary or convenient to the exercise of its powers under the
975	act.
976	(i)  Disseminate information about itself and its
977	activities.
978	(j)  Acquire, by purchase, lease, option, gift, grant,
979	bequest, devise, or otherwise, real property, together with any
980	improvements thereon, or personal property for its
981	administrative purposes or in furtherance of the purposes of
982	this act, together with any improvements thereon.
983	(k)  Hold, improve, clear, or prepare for development any
984	such property.
985	(l)  Mortgage, pledge, hypothecate, or otherwise encumber
986	or dispose of any real or personal property.
987	(m)  Insure or provide for insurance of any real or
988	personal property or operations of the corporation or any
989	private enterprise against any risks or hazards, including the
990	power to pay premiums on any such insurance.
991	(n)  Establish and fund a guaranty fund in furtherance of
992	the purposes of this act.
993	(o)  Invest funds held in reserve or sinking funds or any
994	such funds not required for immediate disbursement in property
995	or securities in such manner as the board shall determine,
996	subject to the authorizing resolution on any bonds issued, and
997	to terms established in the investment agreement pursuant to ss.
998	288.9606, 288.9607, and 288.9608, and redeem such bonds as have
999	been issued pursuant to s. 288.9606 at the redemption price
1000	established therein or purchase such bonds at less than
1001	redemption price, all such bonds so redeemed or purchased to be
1002	canceled.
1003	(p)  Borrow money and apply for and accept advances, loans,
1004	grants, contributions, and any other form of financial
1005	assistance from the Federal Government or the state, county, or
1006	other public agency body or from any sources, public or private,
1007	for the purposes of this act and give such security as may be
1008	required and enter into and carry out contracts or agreements in
1009	connection therewith; and include in any contract for financial
1010	assistance with the Federal Government or the state, county, or
1011	other public agency for, or with respect to, any purposes under
1012	this act and related activities such conditions imposed pursuant
1013	to federal laws as the county or municipality or other public
1014	agency deems reasonable and appropriate which are not
1015	inconsistent with the provisions of this act.
1016	(q)  Make or have all surveys and plans necessary for the
1017	carrying out of the purposes of this act, contract with any
1018	person, public or private, in making and carrying out such
1019	plans, and adopt, approve, modify, and amend such plans.
1020	(r)  Develop, test, and report methods and techniques and
1021	carry out demonstrations and other activities for the promotion
1022	of any of the purposes of this act.
1023	(s)  Apply for, accept, and utilize grants from the Federal
1024	Government or the state, county, or other public agency
1025	available for any of the purposes of this act.
1026	(t)  Make expenditures necessary to carry out the purposes
1027	of this act.
1028	(u)  Exercise all or any part or combination of powers
1029	granted in this act.
1030	(v)  Enter into investment agreements with the Florida
1031	Black Business Investment Board concerning the issuance of bonds
1032	and other forms of indebtedness and capital for the purposes of
1033	ss. 288.707-288.714.
1034	(w)  Determine the situations and circumstances for
1035	participation in partnerships by agreement with local
1036	governments, financial institutions, and others associated with
1037	the redevelopment of brownfield areas pursuant to the
1038	Brownfields Redevelopment Act for a limited state guaranty of
1039	revenue bonds, loan guarantees, or loan loss reserves.
1040	Section 13.  Subsections (3) and (5) of section 288.9606,
1041	Florida Statutes, are amended, and subsection (7) is added to
1042	that section, to read:
1043	288.9606  Issue of revenue bonds.-
1044	(3)  Bonds issued under this section shall be authorized by
1045	a public agency of this state pursuant to the terms of an
1046	interlocal agreement, unless such bonds are issued pursuant to
1047	subsection (7); may be issued in one or more series; and shall
1048	bear such date or dates, be payable upon demand or mature at
1049	such time or times, bear interest rate or rates, be in such
1050	denomination or denominations, be in such form either with or
1051	without coupon or registered, carry such conversion or
1052	registration privileges, have such rank or priority, be executed
1053	in such manner, be payable in such medium of payments at such
1054	place or places, be subject to such terms of redemption, with or
1055	without premium, be secured in such manner, and have such other
1056	characteristics as may be provided by the corporation interlocal
1057	agreement issued pursuant thereto. Bonds issued under this
1058	section may be sold in such manner, either at public or private
1059	sale, and for such price as the corporation may determine will
1060	effectuate the purpose of this act.
1061	(5)  In any suit, action, or proceeding involving the
1062	validity or enforceability of any bond issued under this act, or
1063	the security therefor, any such bond reciting in substance that
1064	it has been issued by the corporation in connection with any
1065	purpose of the act shall be conclusively deemed to have been
1066	issued for such purpose, and such purpose shall be conclusively
1067	deemed to have been carried out in accordance with the act. The
1068	complaint in any action to validate such bonds shall be filed
1069	only in the Circuit Court for Leon County. The notice required
1070	to be published by s. 75.06 shall be published only in Leon
1071	County, and the complaint and order of the circuit court shall
1072	be served only on the State Attorney of the Second Judicial
1073	Circuit and on the state attorney of each circuit in each county
1074	where the public agencies which were initially a party to the
1075	interlocal agreement are located. Notice of such proceedings
1076	shall be published in the manner and the time required by s.
1077	75.06, in Leon County and in each county where the public
1078	agencies which were initially a party to the interlocal
1079	agreement are located. Obligations of the corporation pursuant
1080	to a loan agreement as described in this subsection may be
1081	validated as provided in chapter 75. The validation of at least
1082	the first bonds approved by the corporation shall be appealed to
1083	the Florida Supreme Court. The complaint in the validation
1084	proceeding shall specifically address the constitutionality of
1085	using the investment of the earnings accrued and collected upon
1086	the investment of the minimum balance funds required to be
1087	maintained in the State Transportation Trust Fund to guarantee
1088	such bonds. If such proceeding results in an adverse ruling and
1089	such bonds and guaranty are found to be unconstitutional,
1090	invalid, or unenforceable, then the corporation shall no longer
1091	be authorized to use the investment of the earnings accrued and
1092	collected upon the investment of the minimum balance of the
1093	State Transportation Trust Fund to guarantee any bonds.
1094	(7)  Notwithstanding any provision of this section, the
1095	corporation in its corporate capacity may, without authorization
1096	from a public agency under s. 163.01(7), issue revenue bonds or
1097	other evidence of indebtedness under this section to:
1098	(a)  Finance the undertaking of any project within the
1099	state that promotes renewable energy as defined in s. 377.803 or
1100	s. 366.91;
1101	(b)  Finance the undertaking of any project within the
1102	state that is a project contemplated or allowed under s. 406 of
1103	the American Recovery and Reinvestment Act of 2009; or
1104	(c)  If permitted by federal law, finance qualifying
1105	improvement projects within the state under s. 163.08.
1106	Section 14.  Section 288.9607, Florida Statutes, is amended
1107	to read:
1108	288.9607  Guaranty of bond issues.-
1109	(1)  The corporation may is hereby authorized to approve or
1110	deny, by a majority vote of the membership of the directors, a
1111	guaranty of debt service payments for bonds or other
1112	indebtedness used to finance any capital project that promotes
1113	economic development in the state, including, but not limited
1114	to, those capital projects for which revenue bonds are the
1115	guaranty of any revenue bonds issued under pursuant to this act,
1116	if any such guaranty does not exceed 5 percent of the total
1117	aggregate principal amount of bonds or other indebtedness
1118	relating to any one capital project. The corporation may also
1119	use moneys deposited into the Energy, Technology, and Economic
1120	Development Guaranty Fund to satisfy requirements to obtain
1121	federal loan guarantees for capital projects authorized pursuant
1122	to this section. The guaranty may also be of the obligations of
1123	the corporation with respect to any letter of credit, bond
1124	insurance, or other form of credit enhancement provided by any
1125	person with respect to any revenue bonds issued by the
1126	corporation pursuant to this act.
1127	(2)  Any applicant for financing from the corporation,
1128	requesting a guaranty of the bonds issued by the corporation
1129	under this act must submit a guaranty application, in a form
1130	acceptable to the corporation, together with supporting
1131	documentation to the corporation as provided in this section.
1132	(3)  All applicants which have entered into a guaranty
1133	agreement with the corporation shall pay a guaranty premium on
1134	such terms and at such rates as the corporation shall determine
1135	before prior to the issuance of the guaranty bonds. The
1136	corporation may adopt such guaranty premium structures as it
1137	deems appropriate, including, without limitation, guaranty
1138	premiums which are payable one time upon the issuance of the
1139	guaranty bonds or annual premiums payable upon the outstanding
1140	principal balance of bonds or other indebtedness that is
1141	guaranteed from time to time. The premium payment may be
1142	collected by the corporation from any the lessee of the project
1143	involved, from the applicant, or from any other payee of any the
1144	loan agreement involved.
1145	(4)  All applications for a guaranty must acknowledge that
1146	as a condition to the issuance of the guaranty, the corporation
1147	may require that the financing must be secured by a mortgage or
1148	security interest on the property acquired which will have such
1149	priority over other liens on such property as may be required by
1150	the corporation, and that the financing must be guaranteed by
1151	such person or persons with such ownership interest in the
1152	applicant as may be required by the corporation.
1153	(5)  Personal financial records, trade secrets, or
1154	proprietary information of applicants delivered to or obtained
1155	by the corporation shall be confidential and exempt from the
1156	provisions of s. 119.07(1).
1157	(6)  If the application for a guaranty is approved by the
1158	corporation, the corporation and the applicant shall enter into
1159	a guaranty agreement. In accordance with the provisions of the
1160	guaranty agreement, the corporation guarantees to use the funds
1161	on deposit in its Energy, Technology, and Economic Development
1162	Guaranty Fund Revenue Bond Guaranty Reserve Account to meet debt
1163	service amortization payments on the bonds or indebtedness as
1164	they become due, in the event and to the extent that the
1165	applicant is unable to meet such payments in accordance with the
1166	terms of the bond indenture when called to do so by the trustee
1167	of the bondholders, or to make similar payments to reimburse any
1168	person which has provided credit enhancement for the bonds and
1169	which has advanced funds to meet such debt service amortization
1170	payments as they become due, if such guaranty of the corporation
1171	is limited to 5 percent of the total aggregate principal amount
1172	of bonds or other indebtedness relating to any one capital
1173	project. The corporation may also use moneys deposited in the
1174	Energy, Technology, and Economic Development Guaranty Fund to
1175	satisfy requirements to obtain federal loan guarantees for
1176	capital projects authorized under this section. If the applicant
1177	defaults on debt service bond amortization payments, the
1178	corporation may use funds on deposit in the Energy, Technology,
1179	and Economic Development Guaranty Fund Revenue Bond Guaranty
1180	Reserve Account to pay insurance, maintenance, and other costs
1181	which may be required for the preservation of any capital
1182	project or other collateral security for any bond or
1183	indebtedness issued to finance a capital project for which debt
1184	service payments are guaranteed by the corporation issued by the
1185	corporation, or to otherwise protect the reserve account from
1186	loss, or to minimize losses to the reserve account, in each case
1187	in such manner as may be deemed necessary and advisable by the
1188	corporation.
1189	(7)(a)  The corporation is authorized to enter into an
1190	investment agreement with the Department of Transportation and
1191	the State Board of Administration concerning the investment of
1192	the earnings accrued and collected upon the investment of the
1193	minimum balance of funds required to be maintained in the State
1194	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1195	investment shall be limited as follows:
1196	1.  Not more than $4 million of the investment earnings
1197	earned on the investment of the minimum balance of the State
1198	Transportation Trust Fund in a fiscal year shall be at risk at
1199	any time on one or more bonds or series of bonds issued by the
1200	corporation.
1201	2.  The investment earnings shall not be used to guarantee
1202	any bonds issued after June 30, 1998, and in no event shall the
1203	investment earnings be used to guarantee any bond issued for a
1204	maturity longer than 15 years.
1205	3.  The corporation shall pay a reasonable fee, set by the
1206	State Board of Administration, in return for the investment of
1207	such funds. The fee shall not be less than the comparable rate
1208	for similar investments in terms of size and risk.
1209	4.  The proceeds of bonds, or portions thereof, issued by
1210	the corporation for which a guaranty has been or will be issued
1211	pursuant to s. 288.9606, s. 288.9608, or this section used to
1212	make loans to any one person, including any related interests,
1213	as defined in s. 658.48, of such person, shall not exceed 20
1214	percent of the principal of all such outstanding bonds of the
1215	corporation issued prior to the first composite bond issue of
1216	the corporation, or December 31, 1995, whichever comes first,
1217	and shall not exceed 15 percent of the principal of all such
1218	outstanding bonds of the corporation issued thereafter, in each
1219	case determined as of the date of issuance of the bonds for
1220	which such determination is being made and taking into account
1221	the principal amount of such bonds to be issued. The provisions
1222	of this subparagraph shall not apply when the total amount of
1223	all such outstanding bonds issued by the corporation is less
1224	than $10 million. For the purpose of calculating the limits
1225	imposed by the provisions of this subparagraph, the first $10
1226	million of bonds issued by the corporation shall be taken into
1227	account.
1228	5.  The corporation shall establish a debt service reserve
1229	account which contains not less than 6 months' debt service
1230	reserves from the proceeds of the sale of any bonds, or portions
1231	thereof, guaranteed by the corporation.
1232	6.  The corporation shall establish an account known as the
1233	Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1234	corporation shall deposit a sum of money or other cash
1235	equivalents into this fund and maintain a balance of money or
1236	cash equivalents in this fund, from sources other than the
1237	investment of earnings accrued and collected upon the investment
1238	of the minimum balance of funds required to be maintained in the
1239	State Transportation Trust Fund, not less than a sum equal to 1
1240	year of maximum debt service on all outstanding bonds, or
1241	portions thereof, of the corporation for which a guaranty has
1242	been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
1243	the event the corporation fails to maintain the balance required
1244	pursuant to this subparagraph for any reason other than a
1245	default on a bond issue of the corporation guaranteed pursuant
1246	to this section or because of the use by the corporation of any
1247	such funds to pay insurance, maintenance, or other costs which
1248	may be required for the preservation of any project or other
1249	collateral security for any bond issued by the corporation, or
1250	to otherwise protect the Revenue Bond Guaranty Reserve Account
1251	from loss while the applicant is in default on amortization
1252	payments, or to minimize losses to the reserve account in each
1253	case in such manner as may be deemed necessary or advisable by
1254	the corporation, the corporation shall immediately notify the
1255	Department of Transportation of such deficiency. Any
1256	supplemental funding authorized by an investment agreement
1257	entered into with the Department of Transportation and the State
1258	Board of Administration concerning the use of investment
1259	earnings of the minimum balance of funds is void unless such
1260	deficiency of funds is cured by the corporation within 90 days
1261	after the corporation has notified the Department of
1262	Transportation of such deficiency.
1263	(b)  Unless specifically prohibited in the General
1264	Appropriations Act, the earnings accrued and collected upon the
1265	investment of the minimum balance of funds required to be
1266	maintained in the State Transportation Trust Fund may continue
1267	to be used pursuant to paragraph (a).
1268	(c)  The guaranty is shall not be a general obligation of
1269	the corporation or of the state, but is shall be a special
1270	obligation, which constitutes the investment of a public trust
1271	fund. In no event shall the guaranty constitute an indebtedness
1272	of the corporation, the state of Florida, or any political
1273	subdivision thereof within the meaning of any constitutional or
1274	statutory limitation. Each guaranty agreement shall have plainly
1275	stated on the face thereof that it has been entered into under
1276	the provisions of this act and that it does not constitute an
1277	indebtedness of the corporation, the state, or any political
1278	subdivision thereof within any constitutional or statutory
1279	limitation, and that neither the full faith and credit of the
1280	state of Florida nor any of its revenues is pledged to meet any
1281	of the obligations of the corporation under such guaranty
1282	agreement. Each such agreement shall state that the obligation
1283	of the corporation under the guaranty shall be limited to the
1284	funds available in the Energy, Technology, and Economic
1285	Development Guaranty Fund Revenue Bond Guaranty Reserve Account
1286	as authorized by this section.
1287
1288	The corporation shall include, as part of the annual report
1289	prepared pursuant to s. 288.9610, a detailed report concerning
1290	the use of guaranteed bond proceeds for loans guaranteed or
1291	issued pursuant to any agreement with the Florida Black Business
1292	Investment Board, including the percentage of such loans
1293	guaranteed or issued and the total volume of such loans
1294	guaranteed or issued.
1295	(8)  In the event the corporation does not approve the
1296	application for a guaranty, the applicant shall be notified in
1297	writing of the corporation's determination that the application
1298	not be approved.
1299	(9)  The membership of the corporation is authorized and
1300	directed to conduct such investigation as it may deem necessary
1301	for promulgation of regulations to govern the operation of the
1302	guaranty program authorized by this section. The regulations may
1303	include such other additional provisions, restrictions, and
1304	conditions as the corporation, after its investigation referred
1305	to in this subsection, shall determine to be proper to achieve
1306	the most effective utilization of the guaranty program. This may
1307	include, without limitation, a detailing of the remedies that
1308	must be exhausted by the bondholders, or a trustee acting on
1309	their behalf, or other credit provided before prior to calling
1310	upon the corporation to perform under its guaranty agreement and
1311	the subrogation of other rights of the corporation with
1312	reference to the capital project and its operation or the
1313	financing in the event the corporation makes payment pursuant to
1314	the applicable guaranty agreement. The regulations promulgated
1315	by the corporation to govern the operation of the guaranty
1316	program may shall contain specific provisions with respect to
1317	the rights of the corporation to enter, take over, and manage
1318	all financed properties upon default. These regulations shall be
1319	submitted by set forth the respective rights of the corporation
1320	to the Florida Energy and Climate Commission for approval and
1321	the bondholders in regard thereto.
1322	(10)  The guaranty program described in this section may be
1323	used by the corporation in conjunction with any federal guaranty
1324	programs described in s. 406 of the American Recovery and
1325	Reinvestment Act of 2009. All policies, procedures, and
1326	regulations of the guaranty program adopted by the corporation,
1327	to the extent such guaranty program of the corporation is used
1328	in conjunction with a federal guaranty program described in s.
1329	406 of the American Recovery and Reinvestment Act of 2009, must
1330	be consistent with s. 406 of the American Recovery and
1331	Reinvestment Act of 2009.
1332	Section 15.  Section 288.9608, Florida Statutes, is amended
1333	to read:
1334	288.9608  Creation and funding of the Energy, Technology,
1335	and Economic Development Guaranty Fund guaranty account.-
1336	(1)  The corporation shall establish a debt service reserve
1337	account which contains not less than 6 months' debt service
1338	reserves from the proceeds of the sale of any bonds guaranteed
1339	by the corporation. Funds in such debt service reserve account
1340	shall be used prior to funds in the Revenue Bond Guaranty
1341	Reserve Account established in subsection (2). The corporation
1342	shall make best efforts to liquidate collateralized property and
1343	draw upon personal guarantees, and shall utilize the Revenue
1344	Bond Guaranty Reserve Account prior to use of supplemental
1345	funding for the Guaranty Reserve Account under the provisions of
1346	subsection (3).
1347	(2)(a)  The corporation shall establish an account known as
1348	the Energy, Technology, and Economic Development Guaranty Fund
1349	Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1350	corporation may shall deposit moneys a sum of money or other
1351	cash equivalents into the this fund and maintain a balance in
1352	the this fund, from general revenue funds of the state as are
1353	authorized for that purpose or any other designated funding
1354	sources not inconsistent with state law sources other than the
1355	State Transportation Trust Fund, not less than a sum equal to 1
1356	year of maximum debt service on all outstanding bonds, or
1357	portions thereof, of the corporation for which a guaranty has
1358	been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
1359	(2)(b)  If the corporation determines that the moneys in
1360	the guaranty agreement fund are not sufficient to meet the
1361	obligations of the guaranty agreement fund, the corporation is
1362	authorized to use the necessary amount of any available moneys
1363	that it may have which are not needed for, then or in the
1364	foreseeable future, or committed to other authorized functions
1365	and purposes of the corporation. Any such moneys so used may be
1366	reimbursed out of the guaranty agreement fund if and when there
1367	are moneys therein available for the purpose.
1368	(3)(c)  The determination of when additional moneys will be
1369	needed for the guaranty agreement fund, the amounts that will be
1370	needed, and the availability or unavailability of other moneys
1371	shall be made solely by the corporation in the exercise of its
1372	discretion. However, supplemental funding for the Guaranty Fund
1373	as described in subsection (3) shall be made in accordance with
1374	the investment agreement of the corporation and the Department
1375	of Transportation and the State Board of Administration.
1376	(3)(a)  If the corporation determines that the funds in the
1377	Guaranty Fund will not be sufficient to meet the present or
1378	reasonably projected obligations of the Guaranty Fund, due to a
1379	default on a loan made by the corporation from the proceeds of a
1380	bond issued by the corporation which is guaranteed pursuant to
1381	s. 288.9607(7), no later than 90 days before amortization
1382	payments are due on such bonds, the corporation shall notify the
1383	Secretary of Transportation and the State Board of
1384	Administration of the amount of funds required to meet, as and
1385	when due, all amortization payments for which the Guaranty Fund
1386	is obligated. The Secretary of Transportation shall immediately
1387	notify the Speaker of the House of Representatives, the
1388	President of the Senate, and the chairs of the Senate and House
1389	Committees on Appropriations of the amount of funds required,
1390	and the projected impact on each affected year of the adopted
1391	work program of the Department of Transportation.
1392	(b)  Within 30 days of the receipt of notification from the
1393	corporation, the Department of Transportation shall submit a
1394	budget amendment request to the Executive Office of the Governor
1395	pursuant to chapter 216, to increase budget authority to carry
1396	out the purposes of this section. Upon approval of said
1397	amendment, the department shall proceed to amend the adopted
1398	work program, if necessary, in accordance with the amendment.
1399	Within 60 days of the receipt of notification, and subject to
1400	approval of the budget authority, the Secretary of
1401	Transportation shall transfer, subject to the amount available
1402	from the source described in paragraph (c), the amount of funds
1403	requested by the corporation required to meet, as and when due,
1404	all amortization payments for which the Guaranty Fund is
1405	obligated. Any moneys so transferred shall be reimbursed to the
1406	Department of Transportation, with interest at the rate earned
1407	on investment by the State Treasury, from the funds available in
1408	the Guaranty Fund or as otherwise available to the corporation.
1409	(c)  Pursuant to s. 288.9607(7), the Secretary of
1410	Transportation and the State Board of Administration may make
1411	available for transfer to the Guaranty Fund, earnings accrued
1412	and collected upon the investment of the minimum balance of
1413	funds required to be maintained in the State Transportation
1414	Trust Fund. However, the earnings accrued and collected upon the
1415	investment of the minimum balance of funds required to be
1416	maintained in the State Transportation Trust Fund which shall be
1417	subject to transfer shall be limited to those earnings accrued
1418	and collected on the investment of the minimum balance of funds
1419	required to be maintained in the State Transportation Trust Fund
1420	for the fiscal year in which the notification is received by the
1421	secretary and fiscal years thereafter.
1422	(4)  If the corporation receives supplemental funding for
1423	the Guaranty Fund under the provisions of this section, then any
1424	proceeds received by the corporation with respect to a loan in
1425	default, including proceeds from the sale of collateral for such
1426	loan, enforcement of personal guarantees or other pledges to the
1427	corporation to secure such loan, shall first be applied to the
1428	obligation of the corporation to repay the Department of
1429	Transportation pursuant to this section. Until such repayment is
1430	complete, no new bonds may be guaranteed pursuant to this
1431	section.
1432	(5)  Prior to the use of the guaranty provided in this
1433	section, and on an annual basis, the corporation must certify in
1434	writing to the State Board of Administration and the Secretary
1435	of Transportation that it has fully implemented the requirements
1436	of this section and s. 288.9607 and the regulations of the
1437	corporation.
1438	Section 16.  Section 288.9609, Florida Statutes, is amended
1439	to read:
1440	288.9609  Bonds as legal investments.-All banks, trust
1441	companies, bankers, savings banks and institutions, building and
1442	loan associations, savings and loan associations, investment
1443	companies, and other persons carrying on a banking and
1444	investment business; all insurance companies, insurance
1445	associations, and other persons carrying on an insurance
1446	business; and all executors, administrators, curators, trustees,
1447	and other fiduciaries may legally invest any sinking funds,
1448	moneys, or other funds belonging to them or within their control
1449	in any bonds or other obligations issued by the corporation
1450	pursuant to an interlocal agreement with a public agency of this
1451	state. Such bonds and obligations shall be authorized security
1452	for all public deposits. It is the purpose of this section to
1453	authorize all persons, political subdivisions, and officers,
1454	public and private, to use any funds owned or controlled by them
1455	for the purchase of any such bonds or other obligations. Nothing
1456	contained in this section with regard to legal investments shall
1457	be construed as relieving any person of any duty of exercising
1458	reasonable care in selecting securities.
1459	Section 17.  Section 288.9610, Florida Statutes, is amended
1460	to read:
1461	288.9610  Annual reports of Florida Development Finance
1462	Corporation.-By December 1 of each year, the Florida Development
1463	Finance Corporation shall submit to the Governor, the President
1464	of the Senate, the Speaker of the House of Representatives, the
1465	Senate Minority Leader, and the House Minority Leader, and the
1466	city or county activating the Florida Development Finance
1467	Corporation a complete and detailed report setting forth:
1468	(1)  The evaluation required in s. 11.45(3)(j).
1469	(2)  The operations and accomplishments of the Florida
1470	Development Finance Corporation, including the number of
1471	businesses assisted by the corporation.
1472	(3)  Its assets and liabilities at the end of its most
1473	recent fiscal year, including a description of all of its
1474	outstanding revenue bonds.
1475	Section 18.  Subsection (4) of section 206.46, Florida
1476	Statutes, is amended to read:
1477	206.46  State Transportation Trust Fund.-
1478	(4)  The department may authorize the investment of the
1479	earnings accrued and collected upon the investment of the
1480	minimum balance of funds required to be maintained in the State
1481	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1482	investment shall be limited as provided in s. 288.9607(7).
1483	Section 19.  Subsection (14) of section 215.47, Florida
1484	Statutes, is amended to read:
1485	215.47  Investments; authorized securities; loan of
1486	securities.-Subject to the limitations and conditions of the
1487	State Constitution or of the trust agreement relating to a trust
1488	fund, moneys available for investments under ss. 215.44-215.53
1489	may be invested as follows:
1490	(14)  The State Board of Administration, consistent with
1491	sound investment policy, may invest the earnings accrued and
1492	collected upon the investment of the minimum balance of funds
1493	required to be maintained in the State Transportation Trust Fund
1494	pursuant to s. 339.135(6)(b). Such investment shall be limited
1495	as provided in s. 288.9607(7).
1496	Section 20.  Subsection (3) of section 339.08, Florida
1497	Statutes, is amended to read:
1498	339.08  Use of moneys in State Transportation Trust Fund.-
1499	(3)  The department may authorize the investment of the
1500	earnings accrued and collected upon the investment of the
1501	minimum balance of funds required to be maintained in the State
1502	Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1503	investment shall be limited as provided in s. 288.9607(7).
1504	Section 21.  Paragraph (f) of subsection (7) of section
1505	339.135, Florida Statutes, is amended to read:
1506	339.135  Work program; legislative budget request;
1507	definitions; preparation, adoption, execution, and amendment.-
1508	(7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.-
1509	(f)  The department may authorize the investment of the
1510	earnings accrued and collected upon the investment of the
1511	minimum balance of funds required to be maintained in the State
1512	Transportation Trust Fund pursuant to paragraph (b). Such
1513	investment shall be limited as provided in s. 288.9607(7).
1514	Section 22.  If any provision of this act or the
1515	application thereof to any person or circumstance is held
1516	invalid, the invalidity does not affect other provisions or
1517	applications of the act that may be given effect without the
1518	invalid provision or application, and to this end the provisions
1519	of this act are declared to be severable.
1520	Section 23.  This act shall take effect July 1, 2010.

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