CS/HB 7229

A bill to be entitled
2An act relating to economic incentives for energy
3initiatives; amending s. 377.601, F.S.; revising
4legislative intent relating to the state's energy policy;
5amending s. 377.703, F.S.; conforming cross-references;
6amending s. 366.02, F.S.; revising the definition of the
7term "public utility" for purposes of regulating such
8utilities; creating s. 366.90, F.S.; providing legislative
9intent relating to renewable energy production of
10electricity; amending s. 366.91, F.S.; deleting
11legislative intent provisions to conform to changes made
12by the act; revising definitions of the terms "biomass"
13and "renewable energy"; requiring public utilities to
14purchase renewable energy from producers at full avoided
15cost under certain circumstances; providing that renewable
16energy producers are entitled to sell electrical energy to
17a public utility at full avoided cost under certain
18circumstances; providing legislative findings; providing
19for the calculation of full avoided cost for such
20purchases of renewable energy; declaring that certain
21actions taken by the Public Service Commission are not
22actions relating to utility rates or services; amending s.
23366.92, F.S.; deleting the legislative intent provisions;
24deleting and revising definitions; deleting provisions for
25the renewable portfolio standard and renewable energy
26credits; providing a mechanism for providers to recover
27costs to produce or purchase specified amounts of
28renewable energy through the environmental cost-recovery
29clause under certain conditions; requiring providers to
30include specified information related to renewable energy
31development in a certain report; authorizing a developer
32of solar energy generation to locate a solar energy
33generation facility on the premises of a host consumer
34under certain circumstances; requiring the commission to
35adopt rules and submit reports to the Legislature;
36amending s. 403.503, F.S.; revising the definition of
37"electrical power plant" for purposes of the Florida
38Electrical Power Plant Siting Act; amending ss. 288.9602
39and 288.9603, F.S.; revising legislative findings and
40declarations and definitions for purposes of the Florida
41Development Finance Corporation Act; amending s. 288.9604,
42F.S.; revising requirements for the establishment and
43organization of the Florida Development Finance
44Corporation; amending s. 288.9605, F.S.; revising the
45powers of the corporation; amending s. 288.9606, F.S.;
46revising requirements for the corporation's issuance of
47revenue bonds; amending s. 288.9607, F.S.; limiting the
48corporation's approval of guaranties for debt service for
49bonds or other indebtedness for any one capital project;
50deleting provisions for the corporation's investment of
51certain funds in the State Transportation Trust Fund;
52authorizing guarantees to be used in conjunction with
53federal guaranty programs; amending s. 288.9608, F.S.;
54creating the Energy, Technology, and Economic Development
55Guaranty Fund; providing for the deposit and use of
56certain moneys in the fund; deleting requirements for the
57corporation's debt service reserve account and Revenue
58Bond Guaranty Reserve Account; amending ss. 288.9609,
59288.9610, 206.46, 215.47, 339.08, and 339.135, F.S.;
60conforming provisions to changes made by the act;
61providing for severability; providing an effective date.
63Be It Enacted by the Legislature of the State of Florida:
65     Section 1.  Section 377.601, Florida Statutes, is amended
66to read:
67     377.601  Legislative intent.-
68     (1)  The purpose of the state's energy policy is to ensure
69an adequate and reliable supply of energy for the state in a
70manner that promotes the health and welfare of the public,
71promotes sustainable economic growth, and minimizes and
72mitigates any adverse impacts. The Legislature intends that
73governance of the state's energy policy be efficiently directed
74toward achieving this purpose. The Legislature finds that the
75state's energy security can be increased by lessening dependence
76on foreign oil; that the impacts of global climate change can be
77reduced through the reduction of greenhouse gas emissions; and
78that the implementation of alternative energy technologies can
79be a source of new jobs and employment opportunities for many
80Floridians. The Legislature further finds that the state is
81positioned at the front line against potential impacts of global
82climate change. Human and economic costs of those impacts can be
83averted by global actions and, where necessary, adapted to by a
84concerted effort to make Florida's communities more resilient
85and less vulnerable to these impacts. In focusing the
86government's policy and efforts to benefit and protect our
87state, its citizens, and its resources, the Legislature believes
88that a single government entity with a specific focus on energy
89and climate change is both desirable and advantageous. Further,
90the Legislature finds that energy infrastructure provides the
91foundation for secure and reliable access to the energy supplies
92and services on which Florida depends. Therefore, there is
93significant value to Florida consumers that comes from
94investment in Florida's energy infrastructure that increases
95system reliability, enhances energy independence and
96diversification, stabilizes energy costs, and reduces greenhouse
97gas emissions.
98     (2)  In furtherance of this purpose, the state's energy
99policy shall be implemented through effective, efficient, and
100reliable governance and shall be guided by the following goals
101in order of their priority:
102     (a)  Ensuring an affordable energy supply.
103     (b)  Ensuring adequate supply and capacity.
104     (c)  Ensuring a secure and reliable energy supply.
105     (d)  Minimizing energy cost volatility.
106     (e)  Minimizing the negative impacts of energy production
107on the state's environment, social fabric, and the public health
108and welfare.
109     (f)  Maximizing economic synergies for the state associated
110with its energy policy.
111     (g)  Reducing the net export of energy expenditures.
112     (3)  It is further the policy of the state of Florida to:
113     (a)  Develop and promote the effective use of energy in the
114state, discourage all forms of energy waste, and recognize and
115address the potential of global climate change wherever
117     (b)  Play a leading role in developing and instituting
118energy management programs aimed at promoting energy
119conservation, energy security, and the reduction of greenhouse
120gas emissions.
121     (c)  Include energy considerations in all state, regional,
122and local planning.
123     (d)  Utilize and manage effectively energy resources used
124within state agencies.
125     (e)  Encourage local governments to include energy
126considerations in all planning and to support their work in
127promoting energy management programs.
128     (f)  Include the full participation of citizens in the
129development and implementation of energy programs.
130     (g)  Consider in its decisions the energy needs of each
131economic sector, including residential, industrial, commercial,
132agricultural, and governmental uses, and reduce those needs
133whenever possible.
134     (h)  Promote energy education and the public dissemination
135of information on energy and its environmental, economic, and
136social impact.
137     (i)  Encourage the research, development, demonstration,
138and application of alternative energy resources, particularly
139renewable energy resources.
140     (j)  Consider, in its decisionmaking, the social, economic,
141and environmental impacts of energy-related activities,
142including the whole-life-cycle impacts of any potential energy
143use choices, so that detrimental effects of these activities are
144understood and minimized.
145     (k)  Develop and maintain energy emergency preparedness
146plans to minimize the effects of an energy shortage within
148     Section 2.  Subsection (1) and paragraph (f) of subsection
149(2) of section 377.703, Florida Statutes, is amended to read:
150     377.703  Additional functions of the Florida Energy and
151Climate Commission.-
152     (1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
153demand questions have become a major area of concern to the
154state which must be dealt with by effective and well-coordinated
155state action, it is the intent of the Legislature to promote the
156efficient, effective, and economical management of energy
157problems, centralize energy coordination responsibilities,
158pinpoint responsibility for conducting energy programs, and
159ensure the accountability of state agencies for the
160implementation of s. 377.601(2), the state energy policy. It is
161the specific intent of the Legislature that nothing in this act
162shall in any way change the powers, duties, and responsibilities
163assigned by the Florida Electrical Power Plant Siting Act, part
164II of chapter 403, or the powers, duties, and responsibilities
165of the Florida Public Service Commission.
167commission shall perform the following functions consistent with
168the development of a state energy policy:
169     (f)  The commission shall submit an annual report to the
170Governor and the Legislature reflecting its activities and
171making recommendations of policies for improvement of the
172state's response to energy supply and demand and its effect on
173the health, safety, and welfare of the people of Florida. The
174report shall include a report from the Florida Public Service
175Commission on electricity and natural gas and information on
176energy conservation programs conducted and underway in the past
177year and shall include recommendations for energy conservation
178programs for the state, including, but not limited to, the
179following factors:
180     1.  Formulation of specific recommendations for improvement
181in the efficiency of energy utilization in governmental,
182residential, commercial, industrial, and transportation sectors.
183     2.  Collection and dissemination of information relating to
184energy conservation.
185     3.  Development and conduct of educational and training
186programs relating to energy conservation.
187     4.  An analysis of the ways in which state agencies are
188seeking to implement s. 377.601(2), the state energy policy, and
189recommendations for better fulfilling this policy.
190     Section 3.  Section 366.02, Florida Statutes, is amended to
192     366.02  Definitions.-As used in this chapter, the term:
193     (1)  "Public utility" means every person, corporation,
194partnership, association, or other legal entity and their
195lessees, trustees, or receivers supplying electricity or gas
196(natural, manufactured, or similar gaseous substance) to or for
197the public within this state.; but The term "public utility"
198does not include: either
199     (a)  A cooperative now or hereafter organized and existing
200under the Rural Electric Cooperative Law of the state.;
201     (b)  A municipality or any agency thereof.;
202     (c)  Any dependent or independent special natural gas
204     (d)  Any natural gas transmission pipeline company making
205only sales or transportation delivery of natural gas at
206wholesale and to direct industrial consumers.;
207     (e)  Any entity selling or arranging for sales of natural
208gas which neither owns nor operates natural gas transmission or
209distribution facilities within the state.; or
210     (f)  A person supplying liquefied petroleum gas, in either
211liquid or gaseous form, irrespective of the method of
212distribution or delivery, or owning or operating facilities
213beyond the outlet of a meter through which natural gas is
214supplied for compression and delivery into motor vehicle fuel
215tanks or other transportation containers, unless such person
216also supplies electricity or manufactured or natural gas.
217     (g)  The developer of a solar energy generation facility
218that has a gross power rating of 2 megawatts or less, is located
219on the premises of a host consumer, and supplies electricity
220exclusively for sale to the host consumer for consumption only
221on such premises and contiguous property owned or leased by the
222host consumer, regardless of interruptions in contiguity caused
223by easements, public thoroughfares, transportation rights-of-
224way, or utility rights-of-way, except if such premises or
225contiguous property includes a multifamily residential building.
226     (2)  "Electric utility" means any municipal electric
227utility, investor-owned electric utility, or rural electric
228cooperative which owns, maintains, or operates an electric
229generation, transmission, or distribution system within the
231     (3)  "Commission" means the Florida Public Service
233     Section 4.  Section 366.90, Florida Statutes, is created to
235     366.90  Renewable energy for electricity production.-In
236furtherance of the energy policy goals established in s.
237377.601, the Legislature finds that it is in the public interest
238to promote the development of renewable energy resources in the
239state, for purposes of electricity production, through the
240mechanisms established in ss. 366.91 and 366.92. The Legislature
241further finds that renewable energy resources have the potential
242to help diversify fuel types to alleviate the state's growing
243dependence on natural gas and other fossil fuels for the
244production of electricity, minimize the volatility of fuel
245costs, encourage investment within the state, improve
246environmental conditions, and make the state a leader in new and
247innovative technologies.
248     Section 5.  Section 366.91, Florida Statutes, is amended to
250     366.91  Renewable energy.-
251     (1)  The Legislature finds that it is in the public
252interest to promote the development of renewable energy
253resources in this state. Renewable energy resources have the
254potential to help diversify fuel types to meet Florida's growing
255dependency on natural gas for electric production, minimize the
256volatility of fuel costs, encourage investment within the state,
257improve environmental conditions, and make Florida a leader in
258new and innovative technologies.
259     (1)(2)  As used in this section, the term:
260     (a)  "Biomass" means a power source that is comprised of,
261but not limited to, combustible residues or gases from forest
262products manufacturing, waste, byproducts, or products from
263agricultural and orchard crops, waste or coproducts from
264livestock and poultry operations, waste or byproducts from food
265processing, recycling byproducts, urban wood waste, municipal
266solid waste, municipal liquid waste treatment operations, and
267landfill gas.
268     (b)  "Customer-owned renewable generation" means an
269electric generating system located on a customer's premises that
270is primarily intended to offset part or all of the customer's
271electricity requirements with renewable energy.
272     (c)  "Net metering" means a metering and billing
273methodology whereby customer-owned renewable generation is
274allowed to offset the customer's electricity consumption on
276     (d)  "Renewable energy" means electrical energy produced
277from a method that uses one or more of the following fuels or
278energy sources: hydrogen produced from sources other than fossil
279fuels, biomass, solar energy, geothermal energy, wind energy,
280ocean energy, and hydroelectric power. The term includes the
281alternative energy resource, waste heat, from sulfuric acid
282manufacturing operations and electrical energy produced using
283pipeline-quality synthetic gas produced from waste petroleum
284coke with carbon capture and sequestration.
285     (2)(a)(3)  On or before July 1, 2010 January 1, 2006, each
286public utility must continuously offer to a purchase and must
287purchase contract to producers of renewable energy at the full
288avoided cost calculated as provided in paragraph (5)(b), upon
289request of a renewable energy producer that meets the operating
290requirements of paragraph (4)(a) or paragraph (4)(b). The
291commission may shall establish by rule requirements relating to
292the purchase of renewable energy capacity and energy by public
293utilities from renewable energy producers and may adopt rules to
294administer this section. The contract shall contain payment
295provisions for energy and capacity which are based upon the
296utility's full avoided costs, as defined in s. 366.051; however,
297capacity payments are not required if, due to the operational
298characteristics of the renewable energy generator or the
299anticipated peak and off-peak availability and capacity factor
300of the utility's avoided unit, the producer is unlikely to
301provide any capacity value to the utility or the electric grid
302during the contract term. Each contract must provide a contract
303term of at least 10 years. Prudent and reasonable costs
304associated with the purchase of a renewable energy contract
305shall be recoverable recovered from the ratepayers of the
306purchasing contracting utility, without differentiation among
307customer classes, through the appropriate cost-recovery clause
308mechanism administered by the commission.
309     (b)  Effective July 1, 2010, a renewable energy producer
310that meets the operating requirements in paragraph (4)(a) or
311paragraph (4)(b) is entitled to sell electrical energy to a
312public utility at full avoided cost calculated as provided in
313paragraph (5)(b).
314     (3)(4)  On or before January 1, 2006, each municipal
315electric utility and rural electric cooperative whose annual
316sales, as of July 1, 1993, to retail customers were greater than
3172,000 gigawatt hours must continuously offer a purchase contract
318to producers of renewable energy containing payment provisions
319for energy and capacity which are based upon the utility's or
320cooperative's full avoided costs, as determined by the governing
321body of the municipal utility or cooperative; however, capacity
322payments are not required if, due to the operational
323characteristics of the renewable energy generator or the
324anticipated peak and off-peak availability and capacity factor
325of the utility's avoided unit, the producer is unlikely to
326provide any capacity value to the utility or the electric grid
327during the contract term. Each contract must provide a contract
328term of at least 10 years.
329     (4)(a)  A renewable energy producer that generates and
330delivers to the grid a fixed amount of electrical capacity at a
331rate of production, such that the amount of energy produced per
3321 megawatt of fixed capacity is 7,000 megawatt hours or more per
333year, is entitled to sell to any public utility at full avoided
334cost such fixed amount of capacity and energy.
335     (b)  A renewable energy producer that generates electrical
336energy using waste heat from sulfuric acid manufacturing
337operations, such that the amount of electrical energy produced
338at the site per 1 megawatt of system generating capacity is
3395,500 megawatt hours or more per year and that exports less than
34050 percent of the total electrical energy produced to the grid,
341is entitled to sell to any public utility at full avoided cost
342any excess energy up to an amount equal to the energy used to
343serve its own requirements.
344     (5)(a)  The Legislature finds that, based on analysis of
345past, current, and future projections of retail electric rates,
346a high degree of correlation exists between the retail electric
347rates of public utilities in the state and avoided cost. The
348Legislature further finds that 80 percent of the weighted
349average of firm service retail electric rates of each public
350utility, including all adjustment, recovery, and similar add-on
351charges, directly correlates with each utility's full avoided
352cost for acquiring energy from renewable energy producers that
353meet the operating requirements of paragraph (4)(a) or paragraph
354(4)(b) and that this 80-percent calculation is an
355administratively efficient, transparent, prudent, and preferred
356methodology for calculating full avoided cost.
357     (b)  The full avoided cost to which such renewable energy
358producers are entitled shall be calculated by multiplying 0.80
359by the weighted average of firm service retail electric rates in
360cents per kilowatt hour, including all adjustment, recovery, and
361similar add-on charges, of the purchasing utility.
362     (6)(5)  On or before January 1, 2009, each public utility
363shall develop a standardized interconnection agreement and net
364metering program for customer-owned renewable generation. The
365commission shall establish requirements relating to the
366expedited interconnection and net metering of customer-owned
367renewable generation by public utilities and may adopt rules to
368administer this section.
369     (7)(6)  On or before July 1, 2009, each municipal electric
370utility and each rural electric cooperative that sells
371electricity at retail shall develop a standardized
372interconnection agreement and net metering program for customer-
373owned renewable generation. Each governing authority shall
374establish requirements relating to the expedited interconnection
375and net metering of customer-owned generation. By April 1 of
376each year, each municipal electric utility and rural electric
377cooperative utility serving retail customers shall file a report
378with the commission detailing customer participation in the
379interconnection and net metering program, including, but not
380limited to, the number and total capacity of interconnected
381generating systems and the total energy net metered in the
382previous year.
383     (8)(7)  Under the provisions of subsections (6) and (7) (5)
384and (6), when a utility purchases power generated from biogas
385produced by the anaerobic digestion of agricultural waste,
386including food waste or other agricultural byproducts, net
387metering shall be available at a single metering point or as a
388part of conjunctive billing of multiple points for a customer at
389a single location, so long as the provision of such service and
390its associated charges, terms, and other conditions are not
391reasonably projected to result in higher cost electric service
392to the utility's general body of ratepayers or adversely affect
393the adequacy or reliability of electric service to all
394customers, as determined by the commission for public utilities,
395or as determined by the governing authority of the municipal
396electric utility or rural electric cooperative that serves at
398     (9)(8)  A contracting producer of renewable energy producer
399must pay the actual costs of its interconnection with the
400transmission grid or distribution system.
401     (10)  An action taken by the commission under this section
402is not an action relating to rates or services of utilities
403providing electrical service.
404     Section 6.  Section 366.92, Florida Statutes, is amended to
406     366.92  Florida renewable energy policy.-
407     (1)  It is the intent of the Legislature to promote the
408development of renewable energy; protect the economic viability
409of Florida's existing renewable energy facilities; diversify the
410types of fuel used to generate electricity in Florida; lessen
411Florida's dependence on natural gas and fuel oil for the
412production of electricity; minimize the volatility of fuel
413costs; encourage investment within the state; improve
414environmental conditions; and, at the same time, minimize the
415costs of power supply to electric utilities and their customers.
416     (1)(2)  As used in this section, the term:
417     (a)  "Florida renewable energy resources" means renewable
418energy, as defined in s. 377.803, that is produced in Florida.
419     (a)(b)  "Provider" means a "utility" as defined in s.
421     (b)(c)  "Renewable energy" means renewable energy as
422defined in s. 366.91(2)(d) that is produced in the state.
423     (d)  "Renewable energy credit" or "REC" means a product
424that represents the unbundled, separable, renewable attribute of
425renewable energy produced in Florida and is equivalent to 1
426megawatt-hour of electricity generated by a source of renewable
427energy located in Florida.
428     (e)  "Renewable portfolio standard" or "RPS" means the
429minimum percentage of total annual retail electricity sales by a
430provider to consumers in Florida that shall be supplied by
431renewable energy produced in Florida.
432     (3)  The commission shall adopt rules for a renewable
433portfolio standard requiring each provider to supply renewable
434energy to its customers directly, by procuring, or through
435renewable energy credits. In developing the RPS rule, the
436commission shall consult the Department of Environmental
437Protection and the Florida Energy and Climate Commission. The
438rule shall not be implemented until ratified by the Legislature.
439The commission shall present a draft rule for legislative
440consideration by February 1, 2009.
441     (a)  In developing the rule, the commission shall evaluate
442the current and forecasted levelized cost in cents per kilowatt
443hour through 2020 and current and forecasted installed capacity
444in kilowatts for each renewable energy generation method through
446     (b)  The commission's rule:
447     1.  Shall include methods of managing the cost of
448compliance with the renewable portfolio standard, whether
449through direct supply or procurement of renewable power or
450through the purchase of renewable energy credits. The commission
451shall have rulemaking authority for providing annual cost
452recovery and incentive-based adjustments to authorized rates of
453return on common equity to providers to incentivize renewable
454energy. Notwithstanding s. 366.91(3) and (4), upon the
455ratification of the rules developed pursuant to this subsection,
456the commission may approve projects and power sales agreements
457with renewable power producers and the sale of renewable energy
458credits needed to comply with the renewable portfolio standard.
459In the event of any conflict, this subparagraph shall supersede
460s. 366.91(3) and (4). However, nothing in this section shall
461alter the obligation of each public utility to continuously
462offer a purchase contract to producers of renewable energy.
463     2.  Shall provide for appropriate compliance measures and
464the conditions under which noncompliance shall be excused due to
465a determination by the commission that the supply of renewable
466energy or renewable energy credits was not adequate to satisfy
467the demand for such energy or that the cost of securing
468renewable energy or renewable energy credits was cost
470     3.  May provide added weight to energy provided by wind and
471solar photovoltaic over other forms of renewable energy, whether
472directly supplied or procured or indirectly obtained through the
473purchase of renewable energy credits.
474     4.  Shall determine an appropriate period of time for which
475renewable energy credits may be used for purposes of compliance
476with the renewable portfolio standard.
477     5.  Shall provide for monitoring of compliance with and
478enforcement of the requirements of this section.
479     6.  Shall ensure that energy credited toward compliance
480with the requirements of this section is not credited toward any
481other purpose.
482     7.  Shall include procedures to track and account for
483renewable energy credits, including ownership of renewable
484energy credits that are derived from a customer-owned renewable
485energy facility as a result of any action by a customer of an
486electric power supplier that is independent of a program
487sponsored by the electric power supplier.
488     8.  Shall provide for the conditions and options for the
489repeal or alteration of the rule in the event that new
490provisions of federal law supplant or conflict with the rule.
491     (c)  Beginning on April 1 of the year following final
492adoption of the commission's renewable portfolio standard rule,
493each provider shall submit a report to the commission describing
494the steps that have been taken in the previous year and the
495steps that will be taken in the future to add renewable energy
496to the provider's energy supply portfolio. The report shall
497state whether the provider was in compliance with the renewable
498portfolio standard during the previous year and how it will
499comply with the renewable portfolio standard in the upcoming
501     (2)(4)  Subject to the provisions of this subsection In
502order to demonstrate the feasibility and viability of clean
503energy systems, the commission shall provide for full cost
504recovery under the environmental cost-recovery clause of all
505reasonable and prudent costs incurred by a provider to produce
506or purchase for renewable energy for purposes of supplying
507electrical energy to its retail customers projects that are zero
508greenhouse gas emitting at the point of generation, up to a
509total of 110 megawatts statewide, and for which the provider has
510secured necessary land, zoning permits, and transmission rights
511within the state. Such costs shall be deemed reasonable and
512prudent for purposes of cost recovery so long as the provider
513has used reasonable and customary industry practices in the
514design, procurement, and construction of the project in a cost-
515effective manner appropriate to the location of the facility.
516The provider shall report to the commission as part of the cost-
517recovery proceedings the construction costs, in-service costs,
518operating and maintenance costs, hourly energy production of the
519renewable energy project, and any other information deemed
520relevant by the commission. Any provider constructing a clean
521energy facility pursuant to this section shall file for cost
522recovery no later than July 1, 2009.
523     (a)  A provider may petition the commission through
524December 31, 2013, for recovery of costs to produce or purchase
525up to a total of 735 megawatts of renewable energy statewide,
526subject to the cost cap in paragraph (d). If a provider does not
527seek approval to produce or purchase the total amount of
528renewable energy capacity designated for a specific period under
529this paragraph, the remaining capacity designated for that
530period shall be carried forward to the succeeding period but not
531beyond December 31, 2013. A provider may petition the
533     1.  Beginning July 1, 2010, through December 31, 2011, for
534recovery of costs to produce or purchase up to a total of 300
535megawatts of renewable energy statewide and an additional 15
536megawatts of rooftop or pole-mounted solar energy applications.
537     2.  Beginning January 1, 2012, through December 31, 2012,
538for recovery of costs to produce or purchase up to an additional
539200 megawatts of renewable energy statewide and an additional 10
540megawatts of rooftop or pole-mounted solar energy applications.
541     3.  Beginning January 1, 2013, through December 31, 2013,
542for recovery of costs to produce or purchase up to an additional
543200 megawatts of renewable energy statewide and an additional 10
544megawatts of rooftop or pole-mounted solar energy applications.
545     (b)  In addition to the full cost recovery for such
546renewable energy projects, a return on equity of at least 50
547basis points above the top of the range of the provider's last
548authorized rate of return on equity approved by the commission
549for energy projects shall be approved and provided for such
550renewable energy projects if a majority value of the energy-
551producing components incorporated into such projects are
552manufactured or assembled in the state.
553     (c)  A provider has sole discretion to determine the type
554and technology of the renewable energy resource that it intends
555to use. A provider also has sole discretion to determine whether
556to construct new renewable energy generating facilities, convert
557existing fossil fuel generating facilities to renewable energy
558generating facilities, or contract for the purchase of renewable
559energy from third-party generating facilities in the state.
560     (d)  For the production or purchase of renewable energy
561under this subsection, a provider may recover costs up to and in
562excess of its full avoided cost, as defined in s. 366.051 and
563approved by the commission, if the recovery of costs in excess
564of the provider's full avoided cost does not at any time exceed
5652 percent of the provider's total revenues from the retail sale
566of electricity for calendar year 2009. For purposes of cost
567recovery under this subsection, costs shall be computed using a
568methodology that, for a renewable energy generating facility,
569averages the revenue requirements of the facility over its
570economic life and, for a renewable energy purchase, averages the
571revenue requirements of the purchase over the life of the
573     (e)  Cost recovery under this subsection is limited to new
574construction or conversion projects for which construction is
575commenced on or after July 1, 2010, and to purchases made on or
576after that date. All renewable energy projects for which costs
577are approved by the commission for recovery through the
578environmental cost recovery clause before July 1, 2010, are not
579subject to or included in the calculation of the cost cap.
580     (f)  The costs incurred by a provider to produce or
581purchase renewable energy under this subsection are deemed to be
582prudent for purposes of cost recovery if the provider uses
583reasonable and customary industry practices in the design,
584procurement, and construction of the project in a cost-effective
585manner for the type of renewable energy resource and appropriate
586to the location of the facility.
587     (g)  Subject to the cost cap in paragraph (d), the
588commission shall allow a provider to recover the costs
589associated with the production or purchase of renewable energy
590under this subsection as follows:
591     1.  For new renewable energy generating facilities, the
592commission shall allow recovery of reasonable and prudent costs,
593including, but not limited to, the siting, licensing,
594engineering, design, permitting, construction, operation, and
595maintenance of such facilities, including any applicable taxes
596and a return based on the provider's last authorized rate of
598     2.  For conversion of existing fossil fuel generating
599facilities to renewable energy generating facilities, the
600commission shall allow recovery of reasonable and prudent
601conversion costs, including the costs of retirement of the
602fossil fuel plant that exceed any amounts accrued by the
603provider for such purposes through rates previously set by the
605     3.  For purchase of renewable energy from third-party
606generating facilities in the state, the commission shall allow
607recovery of reasonable and prudent costs associated with the
609     (h)  In a proceeding to recover costs incurred under this
610subsection, a provider must provide the commission all cost
611information, hourly energy production information, and other
612information deemed relevant by the commission with respect to
613each project.
614     (i)  When a provider purchases renewable energy under this
615subsection at a cost in excess of its full avoided cost, the
616seller must surrender to the provider all renewable attributes
617of the renewable energy purchased.
618     (j)  Revenues derived from any renewable energy credit,
619carbon credit, or other mechanism that attributes value to the
620production of renewable energy, either existing or hereafter
621devised, received by a provider by virtue of the production or
622purchase of renewable energy for which cost recovery is approved
623under this subsection shall be shared with the provider's
624ratepayers such that the ratepayers are credited at least 75
625percent of such revenues.
626     (k)  Section 403.519 does not apply to a renewable energy
627generating facility constructed or converted from an existing
628fossil fuel generating facility under this subsection, and the
629commission is not required to submit a report for such a project
630under s. 403.507(4)(a).
631     (3)  Each provider shall, in its 10-year site plan
632submitted to the commission pursuant to s. 186.801, provide the
633following information:
634     (a)  The amount of renewable energy resources the provider
635produces or purchases.
636     (b)  The amount of renewable energy resources the provider
637plans to produce or purchase over the 10-year planning horizon
638and the means by which such production or purchases will be
640     (c)  A statement indicating how the production and purchase
641of renewable energy resources impact the provider's present and
642future capacity and energy needs.
643     (4)(a)  A developer of solar energy generation may locate a
644solar energy generation facility that has a gross power rating
645of 2 megawatts or less on the premises of a host consumer and
646supply electricity exclusively for sale to the host consumer for
647consumption only on the premises or contiguous property owned or
648leased by the host consumer, regardless of interruptions in
649contiguity caused by easements, public thoroughfares,
650transportation rights-of-way, or utility rights-of-way, if such
651premises or contiguous property does not include a multifamily
652residential building.
653     (b)  The commission shall adopt rules to implement this
654subsection. In adopting such rules, the commission shall
655establish, at a minimum:
656     1.  Requirements related to interconnection and metering.
657     2.  A mechanism for setting rates for any service provided
658to the consumer by the utility if such service is required by
659the consumer, which rates shall ensure that the utility's
660general body of ratepayers does not subsidize any redundant
661utility generating capacity necessary to serve the consumer.
662     3.  Requirements for notice to the commission of the size
663and location of each renewable energy generation facility
664planned under this subsection, the identity and historical and
665projected load characteristics of each host consumer, and any
666other information deemed necessary by the commission to satisfy
667its obligations under s. 364.04(5).
668     (c)  Beginning January 1, 2011, and at least once every 6
669months thereafter, the commission shall submit a report to the
670Legislature of activity under this subsection, which shall
671address the impacts of such activity on the electric power grid
672of the state, individual utility systems, and each utility's
673general body of ratepayers, and shall include recommendations
674concerning implementation of this program.
675     (5)  Each municipal electric utility and rural electric
676cooperative shall develop standards for the promotion,
677encouragement, and expansion of the use of renewable energy
678resources and energy conservation and efficiency measures. On or
679before April 1, 2009, and annually thereafter, each municipal
680electric utility and electric cooperative shall submit to the
681commission a report that identifies such standards.
682     (6)  Nothing in This section and any action taken under
683this section may not shall be construed to impede or impair the
684terms and conditions of, or serve as a basis for renegotiating
685or repricing, an existing contract contracts.
686     (7)  The commission may adopt rules to administer and
687implement the provisions of this section.
688     Section 7.  Subsection (14) of section 403.503, Florida
689Statutes, is amended to read:
690     403.503  Definitions relating to Florida Electrical Power
691Plant Siting Act.-As used in this act:
692     (14)  "Electrical power plant" means, for the purpose of
693certification, any steam or solar electrical generating facility
694using any process or fuel, including nuclear materials, except
695that this term does not include any steam or solar electrical
696generating facility of less than 75 megawatts in capacity or any
697solar electrical generating facility of any sized capacity
698unless the applicant for such a facility elects to apply for
699certification under this act. This term also includes the site;
700all associated facilities that will be owned by the applicant
701that are physically connected to the site; all associated
702facilities that are indirectly connected to the site by other
703proposed associated facilities that will be owned by the
704applicant; and associated transmission lines that will be owned
705by the applicant which connect the electrical power plant to an
706existing transmission network or rights-of-way to which the
707applicant intends to connect. At the applicant's option, this
708term may include any offsite associated facilities that will not
709be owned by the applicant; offsite associated facilities that
710are owned by the applicant but that are not directly connected
711to the site; any proposed terminal or intermediate substations
712or substation expansions connected to the associated
713transmission line; or new transmission lines, upgrades, or
714improvements of an existing transmission line on any portion of
715the applicant's electrical transmission system necessary to
716support the generation injected into the system from the
717proposed electrical power plant.
718     Section 8.  Section 288.9602, Florida Statutes, is amended
719to read:
720     288.9602  Findings and declarations of necessity.-The
721Legislature finds and declares that:
722     (1)  There is a need to enhance economic activity in the
723cities and counties of the state by attracting manufacturing,
724development, redevelopment of brownfield areas, business
725enterprise management, and other activities conducive to
726economic promotion in order to provide a stronger, more
727balanced, and stable economy in the cities and counties of the
729     (2)  A significant portion of businesses located in the
730cities and counties of the state or desiring to locate in the
731cities and counties of the state encounter difficulty in
732obtaining financing on terms competitive with those available to
733businesses located in other states and nations or are unable to
734obtain such financing at all.
735     (3)  The difficulty in obtaining such financing impairs the
736expansion of economic activity and the creation of jobs and
737income in communities throughout the state.
738     (4)  The businesses most often affected by these financing
739difficulties are small businesses critical to the economic
740development of the state cities and counties of Florida.
741     (5)  The economic well-being of the people in, and the
742commercial and industrial resources of, the cities and counties
743of the state would be enhanced by the provision of financing to
744businesses on terms competitive with those available in the most
745developed financial markets worldwide.
746     (6)  In order to improve the prosperity and welfare of the
747cities and counties of this state and its inhabitants, to
748improve and promote the financing of projects related to the
749economic development of the cities and counties of this state,
750including redevelopment of brownfield areas, and to increase the
751purchasing power and opportunities for gainful employment of
752citizens of the cities and counties of this state, it is
753necessary and in the public interest to facilitate the financing
754of such projects as provided for in this act and to do so
755without regard to the boundaries between counties,
756municipalities, special districts, and other local governmental
757bodies or agencies in order to more effectively and efficiently
758serve the interests of the greatest number of people in the
759widest area practicable.
760     (7)  In order to promote and stimulate development and
761advance the business prosperity and economic welfare of the
762cities and counties of this state and its inhabitants; to
763encourage and assist new business and industry in this state
764through loans, investments, or other business transactions; to
765rehabilitate and assist existing businesses; to stimulate and
766assist in the expansion of all kinds of for-profit and not-for-
767profit business activity; and to create maximum opportunities
768for employment, encouragement of thrift, and improvement of the
769standard of living of the citizens of Florida, it is necessary
770and in the public interest to facilitate the cooperation and
771action between organizations, public and private, in the
772promotion, development, and conduct of all kinds of for-profit
773and not-for-profit business activity in the state.
774     (8)  In order to efficiently and effectively achieve the
775purposes of this act, it is necessary and in the public interest
776to create a special development finance authority to cooperate
777and act in conjunction with public agencies of this state and
778local governments of this state, through interlocal agreements
779pursuant to the Florida Interlocal Cooperation Act of 1969, in
780the promotion and advancement of projects related to economic
781development, including redevelopment of brownfield areas,
782throughout the state.
783     (9)  The purposes to be achieved by the special development
784finance authority through such projects and such financings of
785business and industry in compliance with the criteria and the
786requirements of this act are predominantly the public purposes
787stated in this section, and such purposes implement the
788governmental purposes under the State Constitution of providing
789for the health, safety, and welfare of the people of the state,
790including implementing the purpose of s. 10(c), Art. VII of the
791State Constitution and simultaneously provide new and innovative
792means for the investment of public trust funds in accordance
793with s. 10(a), Art. VII of the State Constitution.
794     Section 9.  Subsections (6), (11), and (12) of section
795288.9603, Florida Statutes, are amended to read:
796     288.9603  Definitions.-
797     (6)  "Debt service" shall mean for any bonds issued by the
798corporation or for any bonds or other form of indebtedness and
799for which a guaranty has been issued pursuant to ss. 288.9606,
800288.9607, and 288.9608, for any period for which such
801determination is to be made, the aggregate amount of all
802interest charges due or which shall become due on or with
803respect to such bonds or indebtedness during the period for
804which such determination is being made, plus the aggregate
805amount of scheduled principal payments due or which shall become
806due on or with respect to such bonds or indebtedness during the
807period for which such determination is being made. Scheduled
808principal payments may include only principal payments that are
809scheduled as part of the terms of the original bond or
810indebtedness issue and that result in the reduction of the
811outstanding principal balance of the bonds or indebtedness.
812     (11)  "Guaranty agreement" means an agreement by and
813between the corporation and an applicant a public agency
814pursuant to the provisions of s. 288.9607.
815     (12)  "Guaranty agreement fund" means the Energy,
816Technology, and Economic Development Revenue Bond Guaranty Fund
817Reserve Account established by the corporation pursuant to s.
819     Section 10.  Section 288.9604, Florida Statutes, is amended
820to read:
821     288.9604  Creation of the authority.-
822     (1)  Upon a finding of necessity by a city or county of
823this state, selected pursuant to subsection (2), There is
824created a public body corporate and politic known as the
825"Florida Development Finance Corporation." The corporation shall
826be constituted as a public instrumentality of local government,
827and the exercise by the corporation of the powers conferred by
828this act shall be deemed and held to be the performance of an
829essential public function. The corporation has the power to
830function within the corporate limits of any public agency with
831which it has entered into an interlocal agreement for any of the
832purposes of this act.
833     (2)  A city or county of Florida shall be selected by a
834search committee of Enterprise Florida, Inc. This city or county
835shall be authorized to activate the corporation. The search
836committee shall be composed of two commercial banking
837representatives, the Senate member of the partnership, the House
838of Representatives member of the partnership, and a member who
839is an industry or economic development professional.
840     (2)(3)  Upon activation of the corporation, The Governor,
841subject to confirmation by the
842of directors of the corporation,
843The terms of office for the
844the date of their appointment. A vacancy occurring during a term
845shall be filled for the unexpired term. A director shall be
846eligible for reappointment. At least three of the directors of
847the corporation shall be bankers who have been selected by the
848Governor from a list of bankers who were nominated by Enterprise
849Florida, Inc., and one of the directors shall be an economic
850development specialist. The chairperson of the Florida Black
851Business Investment Board shall be an ex officio member of the
852board of the corporation.
853     (3)(4)(a)  A director shall receive no compensation for his
854or her services, but is entitled to the necessary expenses,
855including travel expenses, incurred in the discharge of his or
856her duties. Each director shall hold office until his or her
857successor has been appointed.
858     (b)  The powers of the corporation shall be exercised by
859the directors thereof. A majority of the directors constitutes a
860quorum for the purposes of conducting business and exercising
861the powers of the corporation and for all other purposes. Action
862may be taken by the corporation upon a vote of a majority of the
863directors present, unless in any case the bylaws require a
864larger number. Any person may be appointed as director if he or
865she resides, or is engaged in business, which means owning a
866business, practicing a profession, or performing a service for
867compensation or serving as an officer or director of a
868corporation or other business entity so engaged, within the
870     (c)  The directors of the corporation shall annually elect
871one of their members as chair and one as vice chair. The
872corporation may employ a president, technical experts, and such
873other agents and employees, permanent and temporary, as it
874requires and determine their qualifications, duties, and
875compensation. For such legal services as it requires, the
876corporation may employ or retain its own counsel and legal
877staff. The corporation shall file with the governing body of
878each public agency with which it has entered into an interlocal
879agreement and with the Governor, the Speaker of the House of
880Representatives, the President of the Senate, the Minority
881Leaders of the Senate and House of Representatives, and the
882Auditor General, on or before 90 days after the close of the
883fiscal year of the corporation, a report of its activities for
884the preceding fiscal year, which report shall include a complete
885financial statement setting forth its assets, liabilities,
886income, and operating expenses as of the end of such fiscal
888     (4)(5)  The board may remove a director for inefficiency,
889neglect of duty, or misconduct in office only after a hearing
890and only if he or she has been given a copy of the charges at
891least 10 days before prior to such hearing and has had an
892opportunity to be heard in person or by counsel. The removal of
893a director shall create a vacancy on the board which shall be
894filled pursuant to subsection (4) (3).
895     Section 11.  Section 288.9605, Florida Statutes, is amended
896to read:
897     288.9605  Corporation powers.-
898     (1)  The powers of the corporation created by s. 288.9604
899shall include all the powers necessary or convenient to carry
900out and effectuate the purposes and provisions of this act.
901     (2)  The corporation is authorized and empowered to:
902     (a)  Have perpetual succession as a body politic and
903corporate and adopt bylaws for the regulation of its affairs and
904the conduct of its business.
905     (b)  Adopt an official seal and alter the same at its
907     (c)  Maintain an office at such place or places as it may
909     (d)  Sue and be sued in its own name and plead and be
911     (e)  Enter into interlocal agreements pursuant to s.
912163.01(7) with public agencies of this state for the exercise of
913any power, privilege, or authority consistent with the purposes
914of this act.
915     (f)  Issue, from time to time, revenue bonds, notes, or
916other evidence of indebtedness, including, but not limited to,
917taxable bonds and bonds the interest on which is exempt from
918federal income taxation, for the purpose of financing and
919refinancing any capital projects that promote economic
920development within the state, thereby benefitting the citizens
921of the state, for applicants and exercise all powers in
922connection with the authorization, issuance, and sale of bonds,
923subject to the provisions of s. 288.9606.
924     (g)  Issue bond anticipation notes in connection with the
925authorization, issuance, and sale of such bonds, pursuant to the
926provisions of s. 288.9606.
927     (h)  Make and execute contracts and other instruments
928necessary or convenient to the exercise of its powers under the
930     (i)  Disseminate information about itself and its
932     (j)  Acquire, by purchase, lease, option, gift, grant,
933bequest, devise, or otherwise, real property, together with any
934improvements thereon, or personal property for its
935administrative purposes or in furtherance of the purposes of
936this act, together with any improvements thereon.
937     (k)  Hold, improve, clear, or prepare for development any
938such property.
939     (l)  Mortgage, pledge, hypothecate, or otherwise encumber
940or dispose of any real or personal property.
941     (m)  Insure or provide for insurance of any real or
942personal property or operations of the corporation or any
943private enterprise against any risks or hazards, including the
944power to pay premiums on any such insurance.
945     (n)  Establish and fund a guaranty fund in furtherance of
946the purposes of this act.
947     (o)  Invest funds held in reserve or sinking funds or any
948such funds not required for immediate disbursement in property
949or securities in such manner as the board shall determine,
950subject to the authorizing resolution on any bonds issued, and
951to terms established in the investment agreement pursuant to ss.
952288.9606, 288.9607, and 288.9608, and redeem such bonds as have
953been issued pursuant to s. 288.9606 at the redemption price
954established therein or purchase such bonds at less than
955redemption price, all such bonds so redeemed or purchased to be
957     (p)  Borrow money and apply for and accept advances, loans,
958grants, contributions, and any other form of financial
959assistance from the Federal Government or the state, county, or
960other public agency body or from any sources, public or private,
961for the purposes of this act and give such security as may be
962required and enter into and carry out contracts or agreements in
963connection therewith; and include in any contract for financial
964assistance with the Federal Government or the state, county, or
965other public agency for, or with respect to, any purposes under
966this act and related activities such conditions imposed pursuant
967to federal laws as the county or municipality or other public
968agency deems reasonable and appropriate which are not
969inconsistent with the provisions of this act.
970     (q)  Make or have all surveys and plans necessary for the
971carrying out of the purposes of this act, contract with any
972person, public or private, in making and carrying out such
973plans, and adopt, approve, modify, and amend such plans.
974     (r)  Develop, test, and report methods and techniques and
975carry out demonstrations and other activities for the promotion
976of any of the purposes of this act.
977     (s)  Apply for, accept, and utilize grants from the Federal
978Government or the state, county, or other public agency
979available for any of the purposes of this act.
980     (t)  Make expenditures necessary to carry out the purposes
981of this act.
982     (u)  Exercise all or any part or combination of powers
983granted in this act.
984     (v)  Enter into investment agreements with the Florida
985Black Business Investment Board concerning the issuance of bonds
986and other forms of indebtedness and capital for the purposes of
987ss. 288.707-288.714.
988     (w)  Determine the situations and circumstances for
989participation in partnerships by agreement with local
990governments, financial institutions, and others associated with
991the redevelopment of brownfield areas pursuant to the
992Brownfields Redevelopment Act for a limited state guaranty of
993revenue bonds, loan guarantees, or loan loss reserves.
994     Section 12.  Subsections (3) and (5) of section 288.9606,
995Florida Statutes, are amended, and subsection (7) is added to
996that section, to read:
997     288.9606  Issue of revenue bonds.-
998     (3)  Bonds issued under this section shall be authorized by
999a public agency of this state pursuant to the terms of an
1000interlocal agreement, unless such bonds are issued pursuant to
1001subsection (7); may be issued in one or more series; and shall
1002bear such date or dates, be payable upon demand or mature at
1003such time or times, bear interest rate or rates, be in such
1004denomination or denominations, be in such form either with or
1005without coupon or registered, carry such conversion or
1006registration privileges, have such rank or priority, be executed
1007in such manner, be payable in such medium of payments at such
1008place or places, be subject to such terms of redemption, with or
1009without premium, be secured in such manner, and have such other
1010characteristics as may be provided by the corporation interlocal
1011agreement issued pursuant thereto. Bonds issued under this
1012section may be sold in such manner, either at public or private
1013sale, and for such price as the corporation may determine will
1014effectuate the purpose of this act.
1015     (5)  In any suit, action, or proceeding involving the
1016validity or enforceability of any bond issued under this act, or
1017the security therefor, any such bond reciting in substance that
1018it has been issued by the corporation in connection with any
1019purpose of the act shall be conclusively deemed to have been
1020issued for such purpose, and such purpose shall be conclusively
1021deemed to have been carried out in accordance with the act. The
1022complaint in any action to validate such bonds shall be filed
1023only in the Circuit Court for Leon County. The notice required
1024to be published by s. 75.06 shall be published only in Leon
1025County, and the complaint and order of the circuit court shall
1026be served only on the State Attorney of the Second Judicial
1027Circuit and on the state attorney of each circuit in each county
1028where the public agencies which were initially a party to the
1029interlocal agreement are located. Notice of such proceedings
1030shall be published in the manner and the time required by s.
103175.06, in Leon County and in each county where the public
1032agencies which were initially a party to the interlocal
1033agreement are located. Obligations of the corporation pursuant
1034to a loan agreement as described in this subsection may be
1035validated as provided in chapter 75. The validation of at least
1036the first bonds approved by the corporation shall be appealed to
1037the Florida Supreme Court. The complaint in the validation
1038proceeding shall specifically address the constitutionality of
1039using the investment of the earnings accrued and collected upon
1040the investment of the minimum balance funds required to be
1041maintained in the State Transportation Trust Fund to guarantee
1042such bonds. If such proceeding results in an adverse ruling and
1043such bonds and guaranty are found to be unconstitutional,
1044invalid, or unenforceable, then the corporation shall no longer
1045be authorized to use the investment of the earnings accrued and
1046collected upon the investment of the minimum balance of the
1047State Transportation Trust Fund to guarantee any bonds.
1048     (7)  Notwithstanding any provision of this section, the
1049corporation in its corporate capacity may, without authorization
1050from a public agency under s. 163.01(7), issue revenue bonds or
1051other evidence of indebtedness under this section to:
1052     (a)  Finance the undertaking of any project within the
1053state that promotes renewable energy as defined in s. 377.803 or
1054s. 366.91;
1055     (b)  Finance the undertaking of any project within the
1056state that is a project contemplated or allowed under s. 406 of
1057the American Recovery and Reinvestment Act of 2009; or
1058     (c)  If permitted by federal law, finance qualifying
1059improvement projects within the state under s. 163.08.
1060     Section 13.  Section 288.9607, Florida Statutes, is amended
1061to read:
1062     288.9607  Guaranty of bond issues.-
1063     (1)  The corporation may is hereby authorized to approve or
1064deny, by a majority vote of the membership of the directors, a
1065guaranty of debt service payments for bonds or other
1066indebtedness used to finance any capital project that promotes
1067economic development in the state, including, but not limited
1068to, those capital projects for which revenue bonds are the
1069guaranty of any revenue bonds issued under pursuant to this act,
1070if any such guaranty does not exceed 5 percent of the total
1071aggregate principal amount of bonds or other indebtedness
1072relating to any one capital project. The corporation may also
1073use moneys deposited into the Energy, Technology, and Economic
1074Development Guaranty Fund to satisfy requirements to obtain
1075federal loan guarantees for capital projects authorized pursuant
1076to this section. The guaranty may also be of the obligations of
1077the corporation with respect to any letter of credit, bond
1078insurance, or other form of credit enhancement provided by any
1079person with respect to any revenue bonds issued by the
1080corporation pursuant to this act.
1081     (2)  Any applicant for financing from the corporation,
1082requesting a guaranty of the bonds issued by the corporation
1083under this act must submit a guaranty application, in a form
1084acceptable to the corporation, together with supporting
1085documentation to the corporation as provided in this section.
1086     (3)  All applicants which have entered into a guaranty
1087agreement with the corporation shall pay a guaranty premium on
1088such terms and at such rates as the corporation shall determine
1089before prior to the issuance of the guaranty bonds. The
1090corporation may adopt such guaranty premium structures as it
1091deems appropriate, including, without limitation, guaranty
1092premiums which are payable one time upon the issuance of the
1093guaranty bonds or annual premiums payable upon the outstanding
1094principal balance of bonds or other indebtedness that is
1095guaranteed from time to time. The premium payment may be
1096collected by the corporation from any the lessee of the project
1097involved, from the applicant, or from any other payee of any the
1098loan agreement involved.
1099     (4)  All applications for a guaranty must acknowledge that
1100as a condition to the issuance of the guaranty, the corporation
1101may require that the financing must be secured by a mortgage or
1102security interest on the property acquired which will have such
1103priority over other liens on such property as may be required by
1104the corporation, and that the financing must be guaranteed by
1105such person or persons with such ownership interest in the
1106applicant as may be required by the corporation.
1107     (5)  Personal financial records, trade secrets, or
1108proprietary information of applicants delivered to or obtained
1109by the corporation shall be confidential and exempt from the
1110provisions of s. 119.07(1).
1111     (6)  If the application for a guaranty is approved by the
1112corporation, the corporation and the applicant shall enter into
1113a guaranty agreement. In accordance with the provisions of the
1114guaranty agreement, the corporation guarantees to use the funds
1115on deposit in its Energy, Technology, and Economic Development
1116Guaranty Fund Revenue Bond Guaranty Reserve Account to meet debt
1117service amortization payments on the bonds or indebtedness as
1118they become due, in the event and to the extent that the
1119applicant is unable to meet such payments in accordance with the
1120terms of the bond indenture when called to do so by the trustee
1121of the bondholders, or to make similar payments to reimburse any
1122person which has provided credit enhancement for the bonds and
1123which has advanced funds to meet such debt service amortization
1124payments as they become due, if such guaranty of the corporation
1125is limited to 5 percent of the total aggregate principal amount
1126of bonds or other indebtedness relating to any one capital
1127project. The corporation may also use moneys deposited in the
1128Energy, Technology, and Economic Development Guaranty Fund to
1129satisfy requirements to obtain federal loan guarantees for
1130capital projects authorized under this section. If the applicant
1131defaults on debt service bond amortization payments, the
1132corporation may use funds on deposit in the Energy, Technology,
1133and Economic Development Guaranty Fund Revenue Bond Guaranty
1134Reserve Account to pay insurance, maintenance, and other costs
1135which may be required for the preservation of any capital
1136project or other collateral security for any bond or
1137indebtedness issued to finance a capital project for which debt
1138service payments are guaranteed by the corporation issued by the
1139corporation, or to otherwise protect the reserve account from
1140loss, or to minimize losses to the reserve account, in each case
1141in such manner as may be deemed necessary and advisable by the
1143     (7)(a)  The corporation is authorized to enter into an
1144investment agreement with the Department of Transportation and
1145the State Board of Administration concerning the investment of
1146the earnings accrued and collected upon the investment of the
1147minimum balance of funds required to be maintained in the State
1148Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1149investment shall be limited as follows:
1150     1.  Not more than $4 million of the investment earnings
1151earned on the investment of the minimum balance of the State
1152Transportation Trust Fund in a fiscal year shall be at risk at
1153any time on one or more bonds or series of bonds issued by the
1155     2.  The investment earnings shall not be used to guarantee
1156any bonds issued after June 30, 1998, and in no event shall the
1157investment earnings be used to guarantee any bond issued for a
1158maturity longer than 15 years.
1159     3.  The corporation shall pay a reasonable fee, set by the
1160State Board of Administration, in return for the investment of
1161such funds. The fee shall not be less than the comparable rate
1162for similar investments in terms of size and risk.
1163     4.  The proceeds of bonds, or portions thereof, issued by
1164the corporation for which a guaranty has been or will be issued
1165pursuant to s. 288.9606, s. 288.9608, or this section used to
1166make loans to any one person, including any related interests,
1167as defined in s. 658.48, of such person, shall not exceed 20
1168percent of the principal of all such outstanding bonds of the
1169corporation issued prior to the first composite bond issue of
1170the corporation, or December 31, 1995, whichever comes first,
1171and shall not exceed 15 percent of the principal of all such
1172outstanding bonds of the corporation issued thereafter, in each
1173case determined as of the date of issuance of the bonds for
1174which such determination is being made and taking into account
1175the principal amount of such bonds to be issued. The provisions
1176of this subparagraph shall not apply when the total amount of
1177all such outstanding bonds issued by the corporation is less
1178than $10 million. For the purpose of calculating the limits
1179imposed by the provisions of this subparagraph, the first $10
1180million of bonds issued by the corporation shall be taken into
1182     5.  The corporation shall establish a debt service reserve
1183account which contains not less than 6 months' debt service
1184reserves from the proceeds of the sale of any bonds, or portions
1185thereof, guaranteed by the corporation.
1186     6.  The corporation shall establish an account known as the
1187Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1188corporation shall deposit a sum of money or other cash
1189equivalents into this fund and maintain a balance of money or
1190cash equivalents in this fund, from sources other than the
1191investment of earnings accrued and collected upon the investment
1192of the minimum balance of funds required to be maintained in the
1193State Transportation Trust Fund, not less than a sum equal to 1
1194year of maximum debt service on all outstanding bonds, or
1195portions thereof, of the corporation for which a guaranty has
1196been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
1197the event the corporation fails to maintain the balance required
1198pursuant to this subparagraph for any reason other than a
1199default on a bond issue of the corporation guaranteed pursuant
1200to this section or because of the use by the corporation of any
1201such funds to pay insurance, maintenance, or other costs which
1202may be required for the preservation of any project or other
1203collateral security for any bond issued by the corporation, or
1204to otherwise protect the Revenue Bond Guaranty Reserve Account
1205from loss while the applicant is in default on amortization
1206payments, or to minimize losses to the reserve account in each
1207case in such manner as may be deemed necessary or advisable by
1208the corporation, the corporation shall immediately notify the
1209Department of Transportation of such deficiency. Any
1210supplemental funding authorized by an investment agreement
1211entered into with the Department of Transportation and the State
1212Board of Administration concerning the use of investment
1213earnings of the minimum balance of funds is void unless such
1214deficiency of funds is cured by the corporation within 90 days
1215after the corporation has notified the Department of
1216Transportation of such deficiency.
1217     (b)  Unless specifically prohibited in the General
1218Appropriations Act, the earnings accrued and collected upon the
1219investment of the minimum balance of funds required to be
1220maintained in the State Transportation Trust Fund may continue
1221to be used pursuant to paragraph (a).
1222     (c)  The guaranty is shall not be a general obligation of
1223the corporation or of the state, but is shall be a special
1224obligation, which constitutes the investment of a public trust
1225fund. In no event shall the guaranty constitute an indebtedness
1226of the corporation, the state of Florida, or any political
1227subdivision thereof within the meaning of any constitutional or
1228statutory limitation. Each guaranty agreement shall have plainly
1229stated on the face thereof that it has been entered into under
1230the provisions of this act and that it does not constitute an
1231indebtedness of the corporation, the state, or any political
1232subdivision thereof within any constitutional or statutory
1233limitation, and that neither the full faith and credit of the
1234state of Florida nor any of its revenues is pledged to meet any
1235of the obligations of the corporation under such guaranty
1236agreement. Each such agreement shall state that the obligation
1237of the corporation under the guaranty shall be limited to the
1238funds available in the Energy, Technology, and Economic
1239Development Guaranty Fund Revenue Bond Guaranty Reserve Account
1240as authorized by this section.
1242The corporation shall include, as part of the annual report
1243prepared pursuant to s. 288.9610, a detailed report concerning
1244the use of guaranteed bond proceeds for loans guaranteed or
1245issued pursuant to any agreement with the Florida Black Business
1246Investment Board, including the percentage of such loans
1247guaranteed or issued and the total volume of such loans
1248guaranteed or issued.
1249     (8)  In the event the corporation does not approve the
1250application for a guaranty, the applicant shall be notified in
1251writing of the corporation's determination that the application
1252not be approved.
1253     (9)  The membership of the corporation is authorized and
1254directed to conduct such investigation as it may deem necessary
1255for promulgation of regulations to govern the operation of the
1256guaranty program authorized by this section. The regulations may
1257include such other additional provisions, restrictions, and
1258conditions as the corporation, after its investigation referred
1259to in this subsection, shall determine to be proper to achieve
1260the most effective utilization of the guaranty program. This may
1261include, without limitation, a detailing of the remedies that
1262must be exhausted by the bondholders, or a trustee acting on
1263their behalf, or other credit provided before prior to calling
1264upon the corporation to perform under its guaranty agreement and
1265the subrogation of other rights of the corporation with
1266reference to the capital project and its operation or the
1267financing in the event the corporation makes payment pursuant to
1268the applicable guaranty agreement. The regulations promulgated
1269by the corporation to govern the operation of the guaranty
1270program may shall contain specific provisions with respect to
1271the rights of the corporation to enter, take over, and manage
1272all financed properties upon default. These regulations shall be
1273submitted by set forth the respective rights of the corporation
1274to the Florida Energy and Climate Commission for approval and
1275the bondholders in regard thereto.
1276     (10)  The guaranty program described in this section may be
1277used by the corporation in conjunction with any federal guaranty
1278programs described in s. 406 of the American Recovery and
1279Reinvestment Act of 2009. All policies, procedures, and
1280regulations of the guaranty program adopted by the corporation,
1281to the extent such guaranty program of the corporation is used
1282in conjunction with a federal guaranty program described in s.
1283406 of the American Recovery and Reinvestment Act of 2009, must
1284be consistent with s. 406 of the American Recovery and
1285Reinvestment Act of 2009.
1286     Section 14.  Section 288.9608, Florida Statutes, is amended
1287to read:
1288     288.9608  Creation and funding of the Energy, Technology,
1289and Economic Development Guaranty Fund guaranty account.-
1290     (1)  The corporation shall establish a debt service reserve
1291account which contains not less than 6 months' debt service
1292reserves from the proceeds of the sale of any bonds guaranteed
1293by the corporation. Funds in such debt service reserve account
1294shall be used prior to funds in the Revenue Bond Guaranty
1295Reserve Account established in subsection (2). The corporation
1296shall make best efforts to liquidate collateralized property and
1297draw upon personal guarantees, and shall utilize the Revenue
1298Bond Guaranty Reserve Account prior to use of supplemental
1299funding for the Guaranty Reserve Account under the provisions of
1300subsection (3).
1301     (2)(a)  The corporation shall establish an account known as
1302the Energy, Technology, and Economic Development Guaranty Fund
1303Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1304corporation may shall deposit moneys a sum of money or other
1305cash equivalents into the this fund and maintain a balance in
1306the this fund, from general revenue funds of the state as are
1307authorized for that purpose or any other designated funding
1308sources not inconsistent with state law sources other than the
1309State Transportation Trust Fund, not less than a sum equal to 1
1310year of maximum debt service on all outstanding bonds, or
1311portions thereof, of the corporation for which a guaranty has
1312been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
1313     (2)(b)  If the corporation determines that the moneys in
1314the guaranty agreement fund are not sufficient to meet the
1315obligations of the guaranty agreement fund, the corporation is
1316authorized to use the necessary amount of any available moneys
1317that it may have which are not needed for, then or in the
1318foreseeable future, or committed to other authorized functions
1319and purposes of the corporation. Any such moneys so used may be
1320reimbursed out of the guaranty agreement fund if and when there
1321are moneys therein available for the purpose.
1322     (3)(c)  The determination of when additional moneys will be
1323needed for the guaranty agreement fund, the amounts that will be
1324needed, and the availability or unavailability of other moneys
1325shall be made solely by the corporation in the exercise of its
1326discretion. However, supplemental funding for the Guaranty Fund
1327as described in subsection (3) shall be made in accordance with
1328the investment agreement of the corporation and the Department
1329of Transportation and the State Board of Administration.
1330     (3)(a)  If the corporation determines that the funds in the
1331Guaranty Fund will not be sufficient to meet the present or
1332reasonably projected obligations of the Guaranty Fund, due to a
1333default on a loan made by the corporation from the proceeds of a
1334bond issued by the corporation which is guaranteed pursuant to
1335s. 288.9607(7), no later than 90 days before amortization
1336payments are due on such bonds, the corporation shall notify the
1337Secretary of Transportation and the State Board of
1338Administration of the amount of funds required to meet, as and
1339when due, all amortization payments for which the Guaranty Fund
1340is obligated. The Secretary of Transportation shall immediately
1341notify the Speaker of the House of Representatives, the
1342President of the Senate, and the chairs of the Senate and House
1343Committees on Appropriations of the amount of funds required,
1344and the projected impact on each affected year of the adopted
1345work program of the Department of Transportation.
1346     (b)  Within 30 days of the receipt of notification from the
1347corporation, the Department of Transportation shall submit a
1348budget amendment request to the Executive Office of the Governor
1349pursuant to chapter 216, to increase budget authority to carry
1350out the purposes of this section. Upon approval of said
1351amendment, the department shall proceed to amend the adopted
1352work program, if necessary, in accordance with the amendment.
1353Within 60 days of the receipt of notification, and subject to
1354approval of the budget authority, the Secretary of
1355Transportation shall transfer, subject to the amount available
1356from the source described in paragraph (c), the amount of funds
1357requested by the corporation required to meet, as and when due,
1358all amortization payments for which the Guaranty Fund is
1359obligated. Any moneys so transferred shall be reimbursed to the
1360Department of Transportation, with interest at the rate earned
1361on investment by the State Treasury, from the funds available in
1362the Guaranty Fund or as otherwise available to the corporation.
1363     (c)  Pursuant to s. 288.9607(7), the Secretary of
1364Transportation and the State Board of Administration may make
1365available for transfer to the Guaranty Fund, earnings accrued
1366and collected upon the investment of the minimum balance of
1367funds required to be maintained in the State Transportation
1368Trust Fund. However, the earnings accrued and collected upon the
1369investment of the minimum balance of funds required to be
1370maintained in the State Transportation Trust Fund which shall be
1371subject to transfer shall be limited to those earnings accrued
1372and collected on the investment of the minimum balance of funds
1373required to be maintained in the State Transportation Trust Fund
1374for the fiscal year in which the notification is received by the
1375secretary and fiscal years thereafter.
1376     (4)  If the corporation receives supplemental funding for
1377the Guaranty Fund under the provisions of this section, then any
1378proceeds received by the corporation with respect to a loan in
1379default, including proceeds from the sale of collateral for such
1380loan, enforcement of personal guarantees or other pledges to the
1381corporation to secure such loan, shall first be applied to the
1382obligation of the corporation to repay the Department of
1383Transportation pursuant to this section. Until such repayment is
1384complete, no new bonds may be guaranteed pursuant to this
1386     (5)  Prior to the use of the guaranty provided in this
1387section, and on an annual basis, the corporation must certify in
1388writing to the State Board of Administration and the Secretary
1389of Transportation that it has fully implemented the requirements
1390of this section and s. 288.9607 and the regulations of the
1392     Section 15.  Section 288.9609, Florida Statutes, is amended
1393to read:
1394     288.9609  Bonds as legal investments.-All banks, trust
1395companies, bankers, savings banks and institutions, building and
1396loan associations, savings and loan associations, investment
1397companies, and other persons carrying on a banking and
1398investment business; all insurance companies, insurance
1399associations, and other persons carrying on an insurance
1400business; and all executors, administrators, curators, trustees,
1401and other fiduciaries may legally invest any sinking funds,
1402moneys, or other funds belonging to them or within their control
1403in any bonds or other obligations issued by the corporation
1404pursuant to an interlocal agreement with a public agency of this
1405state. Such bonds and obligations shall be authorized security
1406for all public deposits. It is the purpose of this section to
1407authorize all persons, political subdivisions, and officers,
1408public and private, to use any funds owned or controlled by them
1409for the purchase of any such bonds or other obligations. Nothing
1410contained in this section with regard to legal investments shall
1411be construed as relieving any person of any duty of exercising
1412reasonable care in selecting securities.
1413     Section 16.  Section 288.9610, Florida Statutes, is amended
1414to read:
1415     288.9610  Annual reports of Florida Development Finance
1416Corporation.-By December 1 of each year, the Florida Development
1417Finance Corporation shall submit to the Governor, the President
1418of the Senate, the Speaker of the House of Representatives, the
1419Senate Minority Leader, and the House Minority Leader, and the
1420city or county activating the Florida Development Finance
1421Corporation a complete and detailed report setting forth:
1422     (1)  The evaluation required in s. 11.45(3)(j).
1423     (2)  The operations and accomplishments of the Florida
1424Development Finance Corporation, including the number of
1425businesses assisted by the corporation.
1426     (3)  Its assets and liabilities at the end of its most
1427recent fiscal year, including a description of all of its
1428outstanding revenue bonds.
1429     Section 17.  Subsection (4) of section 206.46, Florida
1430Statutes, is amended to read:
1431     206.46  State Transportation Trust Fund.-
1432     (4)  The department may authorize the investment of the
1433earnings accrued and collected upon the investment of the
1434minimum balance of funds required to be maintained in the State
1435Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1436investment shall be limited as provided in s. 288.9607(7).
1437     Section 18.  Subsection (14) of section 215.47, Florida
1438Statutes, is amended to read:
1439     215.47  Investments; authorized securities; loan of
1440securities.-Subject to the limitations and conditions of the
1441State Constitution or of the trust agreement relating to a trust
1442fund, moneys available for investments under ss. 215.44-215.53
1443may be invested as follows:
1444     (14)  The State Board of Administration, consistent with
1445sound investment policy, may invest the earnings accrued and
1446collected upon the investment of the minimum balance of funds
1447required to be maintained in the State Transportation Trust Fund
1448pursuant to s. 339.135(6)(b). Such investment shall be limited
1449as provided in s. 288.9607(7).
1450     Section 19.  Subsection (3) of section 339.08, Florida
1451Statutes, is amended to read:
1452     339.08  Use of moneys in State Transportation Trust Fund.-
1453     (3)  The department may authorize the investment of the
1454earnings accrued and collected upon the investment of the
1455minimum balance of funds required to be maintained in the State
1456Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1457investment shall be limited as provided in s. 288.9607(7).
1458     Section 20.  Paragraph (f) of subsection (7) of section
1459339.135, Florida Statutes, is amended to read:
1460     339.135  Work program; legislative budget request;
1461definitions; preparation, adoption, execution, and amendment.-
1463     (f)  The department may authorize the investment of the
1464earnings accrued and collected upon the investment of the
1465minimum balance of funds required to be maintained in the State
1466Transportation Trust Fund pursuant to paragraph (b). Such
1467investment shall be limited as provided in s. 288.9607(7).
1468     Section 21.  If any provision of this act or the
1469application thereof to any person or circumstance is held
1470invalid, the invalidity does not affect other provisions or
1471applications of the act that may be given effect without the
1472invalid provision or application, and to this end the provisions
1473of this act are declared to be severable.
1474     Section 22.  This act shall take effect July 1, 2010.

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

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