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       Florida Senate - 2010                              CS for SB 992
       By the Committee on Communications, Energy, and Public
       Utilities; and Senator Diaz de la Portilla
       579-05289A-10                                          2010992c1
    1                        A bill to be entitled                      
    2         An act relating to renewable energy; amending
    3         s. 288.9602, F.S.; deleting references to cities and
    4         counties for purposes of legislative findings;
    5         amending s. 288.9603, F.S.; revising definitions;
    6         amending s. 288.9604, F.S.; deleting obsolete
    7         provisions relating to the creation of the Florida
    8         Development Finance Corporation; amending s. 288.9605,
    9         F.S.; authorizing the corporation to issue notes or
   10         other evidence of indebtedness for the purpose of
   11         financing any capital projects that promote economic
   12         development within the state; authorizing the
   13         corporation to acquire real property and any
   14         improvements to that real property; authorizing the
   15         corporation to accept money from the state, county, or
   16         any other public agency; amending s. 288.9606, F.S.;
   17         making conforming changes and deleting obsolete
   18         provisions; authorizing the corporation to approve a
   19         guaranty of debt service payments for bonds or other
   20         indebtedness used to finance any capital project that
   21         promotes economic development within the state;
   22         providing limitations on such guarantees; authorizing
   23         the corporation to use the guaranty program in
   24         conjunction with any federal guaranty programs
   25         described in s. 406 of the American Recovery and
   26         Reinvestment Act of 2009; making conforming changes
   27         and deleting obsolete provisions; amending ss.
   28         288.9607 and 288.9608, F.S.; renaming the Revenue Bond
   29         Guaranty Reserve Account as the “Energy, Technology,
   30         and Economic Development Guaranty Fund”; providing
   31         duties of the Florida Development Finance Corporation
   32         with respect to the guaranty of debt service payments
   33         for bonds or other indebtedness used to finance
   34         capital projects; limiting the percentage of the total
   35         aggregate principal amount which may be guaranteed by
   36         the fund; deleting obsolete provisions; providing for
   37         the deposit of general revenue into the fund; amending
   38         ss. 288.9609 and 288.9610, F.S., relating to
   39         requirements for bond investments and reports by the
   40         corporation; making conforming changes; amending s.
   41         366.02, F.S.; revising the definition of the term
   42         “public utility” to exclude a developer of certain
   43         solar energy generation facilities; amending s.
   44         366.91, F.S.; providing legislative intent and
   45         findings; revising definitions; deleting a requirement
   46         that each public utility continuously offer a purchase
   47         contract to all producers of renewable energy;
   48         requiring that each public utility purchase renewable
   49         energy from producers that meet specified criteria;
   50         establishing by statute the amount that is to be paid
   51         to such renewable energy producers as avoided cost;
   52         amending s. 366.92, F.S.; deleting provisions
   53         requiring that the Public Service Commission adopt
   54         rules for a renewable portfolio standard; requiring
   55         that the commission provide for full cost recovery for
   56         certain renewable energy projects; requiring the
   57         commission to approve certain renewable energy
   58         projects; providing exemptions from determination-of
   59         need requirements; providing that certain legislative
   60         determinations constitute a public need and necessity
   61         and fulfill certain determination-of-need
   62         requirements; requiring that the commission adopt
   63         rules; creating s. 366.921, F.S.; providing
   64         legislative findings; requiring that a petition filed
   65         by a provider for approval of a facility producing a
   66         Florida renewable energy resource comply with certain
   67         criteria; specifying the criteria to be considered by
   68         the commission in approving a petition for such
   69         facility; requiring that the commission’s final order
   70         approving a facility include authorization for annual
   71         cost recovery; amending s. 403.503, F.S.; redefining
   72         the term “electrical power plant” for purposes of the
   73         Florida Electrical Power Plant Siting Act to exclude
   74         solar electrical or hydroelectric generating
   75         facilities; providing that any competitively procured
   76         purchased power agreement for solar power which is
   77         voluntarily executed by an investor-owned utility by a
   78         specified date is presumed prudently incurred and the
   79         costs exceeding the utility’s full avoided costs for
   80         the purchased power shall be recoverable as an
   81         environmental compliance cost if certain conditions
   82         are met; requiring that the commission immediately
   83         consider and approve such agreements; providing an
   84         effective date.
   86  Be It Enacted by the Legislature of the State of Florida:
   88         Section 1. Section 288.9602, Florida Statutes, is amended
   89  to read:
   90         288.9602 Findings and declarations of necessity.—The
   91  Legislature finds and declares that:
   92         (1) There is a need to enhance economic activity in the
   93  cities and counties of the state by attracting manufacturing,
   94  development, social services, redevelopment of brownfield areas,
   95  business enterprise management, and other activities conducive
   96  to economic promotion in order to provide a stronger, more
   97  balanced, and stable economy in the cities and counties of the
   98  state.
   99         (2) A significant portion of businesses located in the
  100  cities and counties of the state or desiring to locate in the
  101  cities and counties of the state encounter difficulty in
  102  obtaining financing on terms competitive with those available to
  103  businesses located in other states and nations or are unable to
  104  obtain such financing at all.
  105         (3) The difficulty in obtaining such financing impairs the
  106  expansion of economic activity and the creation of jobs and
  107  income in communities throughout the state.
  108         (4) The businesses most often affected by these financing
  109  difficulties are small businesses critical to the economic
  110  development of the cities and counties of Florida.
  111         (5) The economic well-being of the people in, and the
  112  commercial and industrial resources of, the cities and counties
  113  of the state would be enhanced by the provision of financing to
  114  businesses on terms competitive with those available in the most
  115  developed financial markets worldwide.
  116         (6) In order to improve the prosperity and welfare of the
  117  cities and counties of this state and its inhabitants, to
  118  improve and promote the financing of projects related to the
  119  economic development of the cities and counties of this state,
  120  including redevelopment of brownfield areas, and to increase the
  121  purchasing power and opportunities for gainful employment of
  122  citizens of the cities and counties of this state, it is
  123  necessary and in the public interest to facilitate the financing
  124  of such projects as provided for in this act and to do so
  125  without regard to the boundaries between counties,
  126  municipalities, special districts, and other local governmental
  127  bodies or agencies in order to more effectively and efficiently
  128  serve the interests of the greatest number of people in the
  129  widest area practicable.
  130         (7) In order to promote and stimulate development and
  131  advance the business prosperity and economic welfare of the
  132  cities and counties of this state and its inhabitants; to
  133  encourage and assist new business and industry in this state
  134  through loans, investments, or other business transactions; to
  135  rehabilitate and assist existing businesses; to stimulate and
  136  assist in the expansion of all kinds of for-profit and not-for
  137  profit business activity; and to create maximum opportunities
  138  for employment, encouragement of thrift, and improvement of the
  139  standard of living of the citizens of Florida, it is necessary
  140  and in the public interest to facilitate the cooperation and
  141  action between organizations, public and private, in the
  142  promotion, development, and conduct of all kinds of for-profit
  143  and not-for-profit business activity in the state.
  144         (8) In order to efficiently and effectively achieve the
  145  purposes of this act, it is necessary and in the public interest
  146  to create a special development finance authority to cooperate
  147  and act in conjunction with public agencies of this state and
  148  local governments of this state, through interlocal agreements
  149  pursuant to the Florida Interlocal Cooperation Act of 1969, in
  150  the promotion and advancement of projects related to economic
  151  development, including redevelopment of brownfield areas,
  152  throughout the state.
  153         (9) The purposes to be achieved by the special development
  154  finance authority through such projects and such financings of
  155  business and industry in compliance with the criteria and the
  156  requirements of this act are predominantly the public purposes
  157  stated in this section, and such purposes implement the
  158  governmental purposes under the State Constitution of providing
  159  for the health, safety, and welfare of the people of the state,
  160  including implementing the purpose of s. 10(c), Art. VII of the
  161  State Constitution and simultaneously provide new and innovative
  162  means for the investment of public trust funds in accordance
  163  with s. 10(a), Art. VII of the State Constitution.
  164         Section 2. Section 288.9603, Florida Statutes, is amended
  165  to read:
  166         288.9603 Definitions.—
  167         (1) “Act” means the Florida Development Finance Corporation
  168  Act of 1993, and all acts supplemental thereto and amendatory
  169  thereof.
  170         (2) “Amortization payments” means periodic payments, such
  171  as monthly, semiannually, or annually, of interest on premiums,
  172  if any, and installments of principal of revenue bonds as
  173  required by an indenture of the corporation.
  174         (3) “Applicant” means the individual, firm, or corporation,
  175  whether for profit or nonprofit, charged with developing the
  176  project under the terms of the indenture of the corporation.
  177         (4) “Cash equivalents” shall include letters of credit
  178  issued by investment grade rated financial institutions or their
  179  subsidiaries; direct obligations of the government of the United
  180  States of America, or any agency thereof, or obligations
  181  unconditionally guaranteed by the United States of America;
  182  certificates of deposit issued by investment grade rated
  183  financial institutions or their subsidiaries; and investments in
  184  commercial paper which, at the time of acquisition by the
  185  corporation is accorded the highest rating by Standard & Poor’s
  186  Corporation, Moody’s Investors Services, Inc., or any other
  187  nationally recognized credit rating agency of similar standing,
  188  provided that in each such case such investments shall be
  189  convertible to cash as may be reasonably necessary for
  190  application of such moneys as and when the same are to be
  191  applied in accordance with the provisions of this act.
  192         (5) “Corporation” means the Florida Development Finance
  193  Corporation.
  194         (6) “Debt service” shall mean for any bonds issued by the
  195  corporation or for any bonds or other form of indebtedness and
  196  for which a guaranty has been issued pursuant to ss. 288.9606,
  197  288.9607, and 288.9608, for any period for which such
  198  determination is to be made, the aggregate amount of all
  199  interest charges due or which shall become due on or with
  200  respect to such bonds or indebtedness during the period for
  201  which such determination is being made, plus the aggregate
  202  amount of scheduled principal payments due or which shall become
  203  due on or with respect to such bonds or indebtedness during the
  204  period for which such determination is being made. Scheduled
  205  principal payments may include only principal payments that are
  206  scheduled as part of the terms of the original bond or
  207  indebtedness issue and that result in the reduction of the
  208  outstanding principal balance of the bonds or indebtedness.
  209         (7) “Economic development specialist” means a resident of
  210  the state who is professionally employed in the discipline of
  211  economic development or industrial development.
  212         (8) “Financial institution” means any banking corporation
  213  or trust company, savings and loan association, insurance
  214  company or related corporation, partnership, foundation, or
  215  other institution engaged primarily in lending or investing
  216  funds in this state.
  217         (9) “Maximum debt service” shall mean, for any period of 6
  218  months or 1 year, as the case may be, during the life of any
  219  bonds issued by the corporation and for which a guaranty has
  220  been issued pursuant to ss. 288.9606, 288.9607, and 288.9608 and
  221  for which such determination is being made, the maximum amount
  222  of the debt service which is due or will become due during such
  223  period of time on or with respect to such bonds. For the
  224  purposes of calculating the amount of the maximum debt service
  225  with respect to any bonds which bear interest at a variable
  226  rate, the corporation shall utilize a fixed rate which it in its
  227  reasonable discretion determines to be appropriate.
  228         (10) “Partnership” means Enterprise Florida, Inc.
  229         (11) “Guaranty agreement” means an agreement by and between
  230  the corporation and an applicant a public agency pursuant to the
  231  provisions of s. 288.9607.
  232         (12) “Guaranty agreement fund” means the Energy,
  233  Technology, and Economic Development Revenue Bond Guaranty Fund
  234  Reserve Account established by the corporation pursuant to s.
  235  288.9608.
  236         (13) “Interlocal agreement” means an agreement by and
  237  between the Florida Development Finance Corporation and a public
  238  agency of this state, pursuant to the provisions of s. 163.01.
  239         (14) “Public agency” means a political subdivision, agency,
  240  or officer of this state or of any state of the United States,
  241  including, but not limited to, state, government, county, city,
  242  school district, single and multipurpose special district,
  243  single and multipurpose public authority, metropolitan or
  244  consolidated government, an independently elected county
  245  officer, any agency of the United States Government, and any
  246  similar entity of any other state of the United States.
  247         Section 3. Section 288.9604, Florida Statutes, is amended
  248  to read:
  249         288.9604 Creation of the authority.—
  250         (1) Upon a finding of necessity by a city or county of this
  251  state, selected pursuant to subsection (2), There is created a
  252  public body corporate and politic known as the “Florida
  253  Development Finance Corporation.” The corporation shall be
  254  constituted as a public instrumentality of local government, and
  255  the exercise by the corporation of the powers conferred by this
  256  act shall be deemed and held to be the performance of an
  257  essential public function. The corporation has the power to
  258  function within the corporate limits of any public agency with
  259  which it has entered into an interlocal agreement for any of the
  260  purposes of this act.
  261         (2) A city or county of Florida shall be selected by a
  262  search committee of Enterprise Florida, Inc. This city or county
  263  shall be authorized to activate the corporation. The search
  264  committee shall be composed of two commercial banking
  265  representatives, the Senate member of the partnership, the House
  266  of Representatives member of the partnership, and a member who
  267  is an industry or economic development professional.
  268         (2)(3)Upon activation of the corporation, The Governor,
  269  subject to confirmation by the Senate, shall appoint the board
  270  of directors of the corporation, who shall be five in number.
  271  The terms of office for the directors shall be for 4 years from
  272  the date of their appointment. A vacancy occurring during a term
  273  shall be filled for the unexpired term. A director shall be
  274  eligible for reappointment. At least three of the directors of
  275  the corporation shall be bankers who have been selected by the
  276  Governor from a list of bankers who were nominated by Enterprise
  277  Florida, Inc., and one of the directors shall be an economic
  278  development specialist. The chairperson of the Florida Black
  279  Business Investment Board shall be an ex officio member of the
  280  board of the corporation.
  281         (3)(4)(a) A director shall receive no compensation for his
  282  or her services, but is entitled to the necessary expenses,
  283  including travel expenses, incurred in the discharge of his or
  284  her duties. Each director shall hold office until his or her
  285  successor has been appointed.
  286         (b) The powers of the corporation shall be exercised by the
  287  directors thereof. A majority of the directors constitutes a
  288  quorum for the purposes of conducting business and exercising
  289  the powers of the corporation and for all other purposes. Action
  290  may be taken by the corporation upon a vote of a majority of the
  291  directors present, unless in any case the bylaws require a
  292  larger number. Any person may be appointed as director if he or
  293  she resides, or is engaged in business, which means owning a
  294  business, practicing a profession, or performing a service for
  295  compensation or serving as an officer or director of a
  296  corporation or other business entity so engaged, within the
  297  state.
  298         (c) The directors of the corporation shall annually elect
  299  one of their members as chair and one as vice chair. The
  300  corporation may employ a president, technical experts, and such
  301  other agents and employees, permanent and temporary, as it
  302  requires and determine their qualifications, duties, and
  303  compensation. For such legal services as it requires, the
  304  corporation may employ or retain its own counsel and legal
  305  staff. The corporation shall file with the governing body of
  306  each public agency with which it has entered into an interlocal
  307  agreement and with the Governor, the Speaker of the House of
  308  Representatives, the President of the Senate, the Minority
  309  Leaders of the Senate and House of Representatives, and the
  310  Auditor General, on or before 90 days after the close of the
  311  fiscal year of the corporation, a report of its activities for
  312  the preceding fiscal year, which report shall include a complete
  313  financial statement setting forth its assets, liabilities,
  314  income, and operating expenses as of the end of such fiscal
  315  year.
  316         (4)(5) The board may remove a director for inefficiency,
  317  neglect of duty, or misconduct in office only after a hearing
  318  and only if he or she has been given a copy of the charges at
  319  least 10 days prior to such hearing and has had an opportunity
  320  to be heard in person or by counsel. The removal of a director
  321  shall create a vacancy on the board which shall be filled
  322  pursuant to subsection (2) (3).
  323         Section 4. Section 288.9605, Florida Statutes, is amended
  324  to read:
  325         288.9605 Corporation powers.—
  326         (1) The powers of the corporation created by s. 288.9604
  327  shall include all the powers necessary or convenient to carry
  328  out and effectuate the purposes and provisions of this act.
  329         (2) The corporation is authorized and empowered to:
  330         (a) Have perpetual succession as a body politic and
  331  corporate and adopt bylaws for the regulation of its affairs and
  332  the conduct of its business.
  333         (b) Adopt an official seal and alter the same at its
  334  pleasure.
  335         (c) Maintain an office at such place or places as it may
  336  designate.
  337         (d) Sue and be sued in its own name and plead and be
  338  impleaded.
  339         (e) Enter into interlocal agreements pursuant to s.
  340  163.01(7) with public agencies of this state for the exercise of
  341  any power, privilege, or authority consistent with the purposes
  342  of this act.
  343         (f) Issue, from time to time, revenue bonds, notes, or
  344  other evidences of indebtedness, including, but not limited to,
  345  taxable bonds and bonds the interest on which is exempt from
  346  federal income taxation, for the purpose of financing and
  347  refinancing any capital projects that promote economic
  348  development within the state thereby benefitting the residents
  349  of the state for applicants and exercise all powers in
  350  connection with the authorization, issuance, and sale of bonds,
  351  subject to the provisions of s. 288.9606.
  352         (g) Issue bond anticipation notes in connection with the
  353  authorization, issuance, and sale of such bonds, pursuant to the
  354  provisions of s. 288.9606.
  355         (h) Make and execute contracts and other instruments
  356  necessary or convenient to the exercise of its powers under the
  357  act.
  358         (i) Disseminate information about itself and its
  359  activities.
  360         (j) Acquire, by purchase, lease, option, gift, grant,
  361  bequest, devise, or otherwise, real property, together with any
  362  improvements thereon, or personal property for its
  363  administrative purposes, or in furtherance of the purposes of
  364  this act, together with any improvements thereon.
  365         (k) Hold, improve, clear, or prepare for development any
  366  such property.
  367         (l) Mortgage, pledge, hypothecate, or otherwise encumber or
  368  dispose of any real or personal property.
  369         (m) Insure or provide for insurance of any real or personal
  370  property or operations of the corporation or any private
  371  enterprise against any risks or hazards, including the power to
  372  pay premiums on any such insurance.
  373         (n) Establish and fund a guaranty fund in furtherance of
  374  the purposes of this act.
  375         (o) Invest funds held in reserve or sinking funds or any
  376  such funds not required for immediate disbursement in property
  377  or securities in such manner as the board shall determine,
  378  subject to the authorizing resolution on any bonds issued, and
  379  to terms established in the investment agreement pursuant to ss.
  380  288.9606, 288.9607, and 288.9608, and redeem such bonds as have
  381  been issued pursuant to s. 288.9606 at the redemption price
  382  established therein or purchase such bonds at less than
  383  redemption price, all such bonds so redeemed or purchased to be
  384  canceled.
  385         (p) Borrow money and apply for and accept advances, loans,
  386  grants, contributions, and any other form of financial
  387  assistance from the Federal Government or the state, county, or
  388  other public agency body or from any sources, public or private,
  389  for the purposes of this act and give such security as may be
  390  required and enter into and carry out contracts or agreements in
  391  connection therewith; and include in any contract for financial
  392  assistance with the Federal Government or the state, county, or
  393  other public agency for, or with respect to, any purposes under
  394  this act and related activities such conditions imposed pursuant
  395  to federal laws as the county or municipality or other public
  396  agency deems reasonable and appropriate which are not
  397  inconsistent with the provisions of this act.
  398         (q) Make or have all surveys and plans necessary for the
  399  carrying out of the purposes of this act, contract with any
  400  person, public or private, in making and carrying out such
  401  plans, and adopt, approve, modify, and amend such plans.
  402         (r) Develop, test, and report methods and techniques and
  403  carry out demonstrations and other activities for the promotion
  404  of any of the purposes of this act.
  405         (s) Apply for, accept, and utilize grants from the Federal
  406  Government or the state, county, or other public agency
  407  available for any of the purposes of this act.
  408         (t) Make expenditures necessary to carry out the purposes
  409  of this act.
  410         (u) Exercise all or any part or combination of powers
  411  granted in this act.
  412         (v) Enter into investment agreements with the Florida Black
  413  Business Investment Board concerning the issuance of bonds and
  414  other forms of indebtedness and capital for the purposes of ss.
  415  288.707-288.714.
  416         (w) Determine the situations and circumstances for
  417  participation in partnerships by agreement with local
  418  governments, financial institutions, and others associated with
  419  the redevelopment of brownfield areas pursuant to the
  420  Brownfields Redevelopment Act for a limited state guaranty of
  421  revenue bonds, loan guarantees, or loan loss reserves.
  422         Section 5. Section 288.9606, Florida Statutes, is amended
  423  to read:
  424         288.9606 Issue of revenue bonds.—
  425         (1) When authorized by a public agency pursuant to s.
  426  163.01(7),the corporation has power in its corporate capacity,
  427  in its discretion, to issue revenue bonds or other evidences of
  428  indebtedness which a public agency has the power to issue, from
  429  time to time to finance the undertaking of any purpose of this
  430  act and ss. 288.707-288.714, including, without limiting the
  431  generality thereof, the payment of principal and interest upon
  432  any advances for surveys and plans or preliminary loans, and has
  433  the power to issue refunding bonds for the payment or retirement
  434  of bonds previously issued. Bonds issued pursuant to this
  435  section shall bear the name “Florida Development Finance
  436  Corporation Revenue Bonds.” The security for such bonds may be
  437  based upon such revenues as are legally available. In
  438  anticipation of the sale of such revenue bonds, the corporation
  439  may issue bond anticipation notes and may renew such notes from
  440  time to time, but the maximum maturity of any such note,
  441  including renewals thereof, may not exceed 5 years from the date
  442  of issuance of the original note. Such notes shall be paid from
  443  any revenues of the corporation available therefor and not
  444  otherwise pledged or from the proceeds of sale of the revenue
  445  bonds in anticipation of which they were issued. Any bond, note,
  446  or other form of indebtedness issued pursuant to this act shall
  447  mature no later than the end of the 30th fiscal year after the
  448  fiscal year in which the bond, note, or other form of
  449  indebtedness was issued.
  450         (2) Bonds issued under this section do not constitute an
  451  indebtedness within the meaning of any constitutional or
  452  statutory debt limitation or restriction, and are not subject to
  453  the provisions of any other law or charter relating to the
  454  authorization, issuance, or sale of bonds. Bonds issued under
  455  the provisions of this act are declared to be for an essential
  456  public and governmental purpose. Bonds issued under this act,
  457  the interest on which is exempt from income taxes of the United
  458  States, together with interest thereon and income therefrom, are
  459  exempted from all taxes, except those taxes imposed by chapter
  460  220, on interest, income, or profits on debt obligations owned
  461  by corporations.
  462         (3) Bonds issued under this section shall be authorized by
  463  a public agency of this state pursuant to the terms of an
  464  interlocal agreement, unless such bonds are issued pursuant to
  465  subsection (7); may be issued in one or more series; and shall
  466  bear such date or dates, be payable upon demand or mature at
  467  such time or times, bear interest rate or rates, be in such
  468  denomination or denominations, be in such form either with or
  469  without coupon or registered, carry such conversion or
  470  registration privileges, have such rank or priority, be executed
  471  in such manner, be payable in such medium of payments at such
  472  place or places, be subject to such terms of redemption, with or
  473  without premium, be secured in such manner, and have such other
  474  characteristics as may be provided by the corporation interlocal
  475  agreement issued pursuant thereto. Bonds issued under this
  476  section may be sold in such manner, either at public or private
  477  sale, and for such price as the corporation may determine will
  478  effectuate the purpose of this act.
  479         (4) In case a director whose signature appears on any bonds
  480  or coupons issued under this act ceases to be a director before
  481  the delivery of such bonds, such signature is, nevertheless,
  482  valid and sufficient for all purposes, the same as if such
  483  director had remained in office until such delivery.
  484         (5) In any suit, action, or proceeding involving the
  485  validity or enforceability of any bond issued under this act, or
  486  the security therefor, any such bond reciting in substance that
  487  it has been issued by the corporation in connection with any
  488  purpose of the act shall be conclusively deemed to have been
  489  issued for such purpose, and such purpose shall be conclusively
  490  deemed to have been carried out in accordance with the act. The
  491  complaint in any action to validate such bonds shall be filed
  492  only in the Circuit Court for Leon County. The notice required
  493  to be published by s. 75.06 shall be published only in Leon
  494  County, and the complaint and order of the circuit court shall
  495  be served only on the State Attorney of the Second Judicial
  496  Circuit and on the state attorney of each circuit in each county
  497  where the public agencies which were initially a party to the
  498  interlocal agreement are located. Notice of such proceedings
  499  shall be published in the manner and the time required by s.
  500  75.06, in Leon County and in each county where the public
  501  agencies which were initially a party to the interlocal
  502  agreement are located. Obligations of the corporation pursuant
  503  to a loan agreement as described in this subsection may be
  504  validated as provided in chapter 75. The validation of at least
  505  the first bonds approved by the corporation shall be appealed to
  506  the Florida Supreme Court. The complaint in the validation
  507  proceeding shall specifically address the constitutionality of
  508  using the investment of the earnings accrued and collected upon
  509  the investment of the minimum balance funds required to be
  510  maintained in the State Transportation Trust Fund to guarantee
  511  such bonds. If such proceeding results in an adverse ruling and
  512  such bonds and guaranty are found to be unconstitutional,
  513  invalid, or unenforceable, then the corporation shall no longer
  514  be authorized to use the investment of the earnings accrued and
  515  collected upon the investment of the minimum balance of the
  516  State Transportation Trust Fund to guarantee any bonds.
  517         (6) The proceeds of any bonds of the corporation may not be
  518  used, in any manner, to acquire any building or facility that
  519  will be, during the pendency of the financing, used by, occupied
  520  by, leased to, or paid for by any state, county, or municipal
  521  agency or entity.
  522         (7)Notwithstanding anything to the contrary contained in
  523  this section, the corporation has power in its corporate
  524  capacity, in its discretion, to issue revenue bonds or other
  525  evidences of indebtedness pursuant to this section without any
  526  authorization by a public agency pursuant to s. 163.01(7), to:
  527  finance the undertaking of any project within the state which
  528  promotes renewable energy as defined in s. 377.803 or s.
  529  366.91(2)(d); finance the undertaking of any project within the
  530  state which is a project contemplated or allowed under s. 406 of
  531  the American Recovery and Reinvestment Act of 2009, as may be
  532  supplemented and amended from time to time; and, if permitted by
  533  federal law, to finance property assessed as clean energy
  534  projects within the state.
  535         Section 6. Section 288.9607, Florida Statutes, is amended
  536  to read:
  537         288.9607 Guaranty Program of bond issues.—
  538         (1) The corporation is hereby authorized to approve or
  539  deny, by a majority vote of the membership of the directors, a
  540  guaranty of debt service payments for bonds or other
  541  indebtedness used to finance any capital project that promotes
  542  economic development within the state, including, but not
  543  limited to, those capital projects for which revenue bonds have
  544  been or will be the guaranty of any revenue bonds issued
  545  pursuant to this act, provided that any such guaranty shall not
  546  exceed 5 percent of the total aggregate principal amount of
  547  bonds or other indebtedness relating to any one capital project.
  548  The guaranty may also be of the obligations of the corporation
  549  with respect to any letter of credit, bond insurance, or other
  550  form of credit enhancement provided by any person with respect
  551  to any revenue bonds issued by the corporation pursuant to this
  552  act.
  553         (2) Any applicant for financing from the corporation,
  554  requesting a guaranty of the bonds issued by the corporation
  555  under this act must submit a guaranty application, in a form
  556  acceptable to the corporation, together with supporting
  557  documentation to the corporation as provided in this section.
  558         (3) All applicants that which have entered into a guaranty
  559  agreement with the corporation shall pay a guaranty premium on
  560  such terms and at such rates as the corporation shall determine
  561  prior to the issuance of the guaranty bonds. The corporation may
  562  adopt such guaranty premium structures as it deems appropriate,
  563  including, without limitation, guaranty premiums that which are
  564  payable one time upon the issuance of the guaranty bonds or
  565  annual premiums payable upon the outstanding principal balance
  566  of bonds or other indebtedness that is guaranteed from time to
  567  time. The premium payment may be collected by the corporation
  568  from any the lessee of the project involved, from the applicant,
  569  or from any other payee of any the loan agreement involved.
  570         (4) All applications for a guaranty must acknowledge that
  571  as a condition to the issuance of the guaranty, the corporation
  572  may require that the financing must be secured by a mortgage or
  573  security interest on the property acquired which will have such
  574  priority over other liens on such property as may be required by
  575  the corporation, and that the financing must be guaranteed by
  576  such person or persons with such ownership interest in the
  577  applicant as may be required by the corporation.
  578         (5) Personal financial records, trade secrets, or
  579  proprietary information of applicants delivered to or obtained
  580  by the corporation shall be confidential and exempt from the
  581  provisions of s. 119.07(1).
  582         (6) If the application for a guaranty is approved by the
  583  corporation, the corporation and the applicant shall enter into
  584  a guaranty agreement. In accordance with the provisions of the
  585  guaranty agreement, the corporation guarantees to use the funds
  586  on deposit in its Energy, Technology, and Economic Development
  587  Revenue Bond Guaranty Fund Reserve Account to meet debt service
  588  amortization payments on the bonds or indebtedness as they
  589  become due, in the event and to the extent that the applicant is
  590  unable to meet such payments in accordance with the terms of the
  591  bond indenture when called to do so by the trustee of the
  592  bondholders, or to make similar payments to reimburse any person
  593  which has provided credit enhancement for the bonds and which
  594  has advanced funds to meet such debt service amortization
  595  payments as they become due, provided that such guaranty of the
  596  corporation shall be limited to 5 percent of the total aggregate
  597  principal amount of bonds or other indebtedness relating to any
  598  one capital project. If the applicant defaults on debt service
  599  bond amortization payments, the corporation may use funds on
  600  deposit in the Energy, Technology, and Economic Development
  601  Revenue Bond Guaranty Fund Reserve Account to pay insurance,
  602  maintenance, and other costs which may be required for the
  603  preservation of any capital project or other collateral security
  604  for any bond or indebtedness issued to finance a capital project
  605  for which debt service payments have been guaranteed by the
  606  corporation, issued by the corporation, or to otherwise protect
  607  the reserve account from loss, or to minimize losses to the
  608  reserve account, in each case in such manner as may be deemed
  609  necessary and advisable by the corporation.
  610         (7)(a) The corporation is authorized to enter into an
  611  investment agreement with the Department of Transportation and
  612  the State Board of Administration concerning the investment of
  613  the earnings accrued and collected upon the investment of the
  614  minimum balance of funds required to be maintained in the State
  615  Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
  616  investment shall be limited as follows:
  617         1. Not more than $4 million of the investment earnings
  618  earned on the investment of the minimum balance of the State
  619  Transportation Trust Fund in a fiscal year shall be at risk at
  620  any time on one or more bonds or series of bonds issued by the
  621  corporation.
  622         2. The investment earnings shall not be used to guarantee
  623  any bonds issued after June 30, 1998, and in no event shall the
  624  investment earnings be used to guarantee any bond issued for a
  625  maturity longer than 15 years.
  626         3. The corporation shall pay a reasonable fee, set by the
  627  State Board of Administration, in return for the investment of
  628  such funds. The fee shall not be less than the comparable rate
  629  for similar investments in terms of size and risk.
  630         4. The proceeds of bonds, or portions thereof, issued by
  631  the corporation for which a guaranty has been or will be issued
  632  pursuant to s. 288.9606, s. 288.9608, or this section used to
  633  make loans to any one person, including any related interests,
  634  as defined in s. 658.48, of such person, shall not exceed 20
  635  percent of the principal of all such outstanding bonds of the
  636  corporation issued prior to the first composite bond issue of
  637  the corporation, or December 31, 1995, whichever comes first,
  638  and shall not exceed 15 percent of the principal of all such
  639  outstanding bonds of the corporation issued thereafter, in each
  640  case determined as of the date of issuance of the bonds for
  641  which such determination is being made and taking into account
  642  the principal amount of such bonds to be issued. The provisions
  643  of this subparagraph shall not apply when the total amount of
  644  all such outstanding bonds issued by the corporation is less
  645  than $10 million. For the purpose of calculating the limits
  646  imposed by the provisions of this subparagraph, the first $10
  647  million of bonds issued by the corporation shall be taken into
  648  account.
  649         5. The corporation shall establish a debt service reserve
  650  account which contains not less than 6 months’ debt service
  651  reserves from the proceeds of the sale of any bonds, or portions
  652  thereof, guaranteed by the corporation.
  653         6. The corporation shall establish an account known as the
  654  Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
  655  corporation shall deposit a sum of money or other cash
  656  equivalents into this fund and maintain a balance of money or
  657  cash equivalents in this fund, from sources other than the
  658  investment of earnings accrued and collected upon the investment
  659  of the minimum balance of funds required to be maintained in the
  660  State Transportation Trust Fund, not less than a sum equal to 1
  661  year of maximum debt service on all outstanding bonds, or
  662  portions thereof, of the corporation for which a guaranty has
  663  been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
  664  the event the corporation fails to maintain the balance required
  665  pursuant to this subparagraph for any reason other than a
  666  default on a bond issue of the corporation guaranteed pursuant
  667  to this section or because of the use by the corporation of any
  668  such funds to pay insurance, maintenance, or other costs which
  669  may be required for the preservation of any project or other
  670  collateral security for any bond issued by the corporation, or
  671  to otherwise protect the Revenue Bond Guaranty Reserve Account
  672  from loss while the applicant is in default on amortization
  673  payments, or to minimize losses to the reserve account in each
  674  case in such manner as may be deemed necessary or advisable by
  675  the corporation, the corporation shall immediately notify the
  676  Department of Transportation of such deficiency. Any
  677  supplemental funding authorized by an investment agreement
  678  entered into with the Department of Transportation and the State
  679  Board of Administration concerning the use of investment
  680  earnings of the minimum balance of funds is void unless such
  681  deficiency of funds is cured by the corporation within 90 days
  682  after the corporation has notified the Department of
  683  Transportation of such deficiency.
  684         (b) Unless specifically prohibited in the General
  685  Appropriations Act, the earnings accrued and collected upon the
  686  investment of the minimum balance of funds required to be
  687  maintained in the State Transportation Trust Fund may continue
  688  to be used pursuant to paragraph (a).
  689         (c) The guaranty shall not be a general obligation of the
  690  corporation or of the state, but shall be a special obligation,
  691  which constitutes the investment of a public trust fund. In no
  692  event shall the guaranty constitute an indebtedness of the
  693  corporation, the State of Florida, or any political subdivision
  694  thereof within the meaning of any constitutional or statutory
  695  limitation. Each guaranty agreement shall have plainly stated on
  696  the face thereof that it has been entered into under the
  697  provisions of this act and that it does not constitute an
  698  indebtedness of the corporation, the state, or any political
  699  subdivision thereof within any constitutional or statutory
  700  limitation, and that neither the full faith and credit of the
  701  State of Florida nor any of its revenues is pledged to meet any
  702  of the obligations of the corporation under such guaranty
  703  agreement. Each such agreement shall state that the obligation
  704  of the corporation under the guaranty shall be limited to the
  705  funds available in the Energy, Technology, and Economic
  706  Development Revenue Bond Guaranty Fund Reserve Account as
  707  authorized by this section.
  709  The corporation shall include, as part of the annual report
  710  prepared pursuant to s. 288.9610, a detailed report concerning
  711  the use of guaranteed bond proceeds for loans guaranteed or
  712  issued pursuant to any agreement with the Florida Black Business
  713  Investment Board, including the percentage of such loans
  714  guaranteed or issued and the total volume of such loans
  715  guaranteed or issued.
  716         (8) In the event the corporation does not approve the
  717  application for a guaranty, the applicant shall be notified in
  718  writing of the corporation’s determination that the application
  719  not be approved.
  720         (9) The membership of the corporation is authorized and
  721  directed to conduct such investigation as it may deem necessary
  722  for promulgation of regulations to govern the operation of the
  723  guaranty program authorized by this section. The regulations may
  724  include such other additional provisions, restrictions, and
  725  conditions as the corporation, after its investigation referred
  726  to in this subsection, shall determine to be proper to achieve
  727  the most effective utilization of the guaranty program. This may
  728  include, without limitation, a detailing of the remedies that
  729  must be exhausted by the bondholders, or a trustee acting on
  730  their behalf, or other credit provider prior to calling upon the
  731  corporation to perform under its guaranty agreement and the
  732  subrogation of other rights of the corporation with reference to
  733  the capital project and its operation or the financing in the
  734  event the corporation makes payment pursuant to the applicable
  735  guaranty agreement. The regulations promulgated by the
  736  corporation to govern the operation of the guaranty program may
  737  shall contain specific provisions with respect to the rights of
  738  the corporation to enter, take over, and manage all financed
  739  properties upon default. These regulations shall be submitted by
  740  set forth the respective rights of the corporation to the
  741  Governor’s Energy Office for approval and the bondholders in
  742  regard thereto.
  743         (10)The guaranty program described in this section may be
  744  used by the corporation in conjunction with any federal guaranty
  745  programs described in s. 406 of the American Recovery and
  746  Reinvestment Act of 2009, as may be supplemented and amended
  747  from time to time. All policies and procedures or regulations of
  748  the guaranty program promulgated by the corporation, to the
  749  extent such guaranty program of the corporation will be used in
  750  conjunction with a federal guaranty program described in s. 406
  751  of the American Recovery and Reinvestment Act of 2009, shall be
  752  consistent with s. 406 of the American Recovery and Reinvestment
  753  Act of 2009, as may be supplemented and amended from time to
  754  time.
  755         Section 7. Section 288.9608, Florida Statutes, is amended
  756  to read:
  757         288.9608 Creation and funding of the Energy, Technology,
  758  and Economic Development Guaranty Fund guaranty account.—
  759         (1) The corporation shall establish a debt service reserve
  760  account which contains not less than 6 months’ debt service
  761  reserves from the proceeds of the sale of any bonds guaranteed
  762  by the corporation. Funds in such debt service reserve account
  763  shall be used prior to funds in the Revenue Bond Guaranty
  764  Reserve Account established in subsection (2). The corporation
  765  shall make best efforts to liquidate collateralized property and
  766  draw upon personal guarantees, and shall utilize the Revenue
  767  Bond Guaranty Reserve Account prior to use of supplemental
  768  funding for the Guaranty Reserve Account under the provisions of
  769  subsection (3).
  770         (1)(2)(a) The corporation shall establish an account known
  771  as the Energy, Technology, and Economic Development Revenue Bond
  772  Guaranty Reserve Account, the Guaranty Fund. The corporation is
  773  authorized to shall deposit moneys a sum of money or other cash
  774  equivalents into this fund and maintain a balance in this fund,
  775  from general revenue funds of the state as may be authorized for
  776  such purpose, or any other designated funding sources not
  777  inconsistent with state law sources other than the State
  778  Transportation Trust Fund, not less than a sum equal to 1 year
  779  of maximum debt service on all outstanding bonds, or portions
  780  thereof, of the corporation for which a guaranty has been issued
  781  pursuant to ss. 288.9606, 288.9607, and 288.9608.
  782         (2)(b) If the corporation determines that the moneys in the
  783  guaranty agreement fund are not sufficient to meet the
  784  obligations of the guaranty agreement fund, the corporation is
  785  authorized to use the necessary amount of any available moneys
  786  that it may have which are not needed for, then or in the
  787  foreseeable future, or committed to other authorized functions
  788  and purposes of the corporation. Any such moneys so used may be
  789  reimbursed out of the guaranty agreement fund if and when there
  790  are moneys therein available for the purpose.
  791         (3)(c) The determination of when additional moneys will be
  792  needed for the guaranty agreement fund, the amounts that will be
  793  needed, and the availability or unavailability of other moneys
  794  shall be made solely by the corporation in the exercise of its
  795  discretion. However, supplemental funding for the Guaranty Fund
  796  as described in subsection (3) shall be made in accordance with
  797  the investment agreement of the corporation and the Department
  798  of Transportation and the State Board of Administration.
  799         (3)(a) If the corporation determines that the funds in the
  800  Guaranty Fund will not be sufficient to meet the present or
  801  reasonably projected obligations of the Guaranty Fund, due to a
  802  default on a loan made by the corporation from the proceeds of a
  803  bond issued by the corporation which is guaranteed pursuant to
  804  s. 288.9607(7), no later than 90 days before amortization
  805  payments are due on such bonds, the corporation shall notify the
  806  Secretary of Transportation and the State Board of
  807  Administration of the amount of funds required to meet, as and
  808  when due, all amortization payments for which the Guaranty Fund
  809  is obligated. The Secretary of Transportation shall immediately
  810  notify the Speaker of the House of Representatives, the
  811  President of the Senate, and the chairs of the Senate and House
  812  Committees on Appropriations of the amount of funds required,
  813  and the projected impact on each affected year of the adopted
  814  work program of the Department of Transportation.
  815         (b) Within 30 days of the receipt of notification from the
  816  corporation, the Department of Transportation shall submit a
  817  budget amendment request to the Executive Office of the Governor
  818  pursuant to chapter 216, to increase budget authority to carry
  819  out the purposes of this section. Upon approval of said
  820  amendment, the department shall proceed to amend the adopted
  821  work program, if necessary, in accordance with the amendment.
  822  Within 60 days of the receipt of notification, and subject to
  823  approval of the budget authority, the Secretary of
  824  Transportation shall transfer, subject to the amount available
  825  from the source described in paragraph (c), the amount of funds
  826  requested by the corporation required to meet, as and when due,
  827  all amortization payments for which the Guaranty Fund is
  828  obligated. Any moneys so transferred shall be reimbursed to the
  829  Department of Transportation, with interest at the rate earned
  830  on investment by the State Treasury, from the funds available in
  831  the Guaranty Fund or as otherwise available to the corporation.
  832         (c) Pursuant to s. 288.9607(7), the Secretary of
  833  Transportation and the State Board of Administration may make
  834  available for transfer to the Guaranty Fund, earnings accrued
  835  and collected upon the investment of the minimum balance of
  836  funds required to be maintained in the State Transportation
  837  Trust Fund. However, the earnings accrued and collected upon the
  838  investment of the minimum balance of funds required to be
  839  maintained in the State Transportation Trust Fund which shall be
  840  subject to transfer shall be limited to those earnings accrued
  841  and collected on the investment of the minimum balance of funds
  842  required to be maintained in the State Transportation Trust Fund
  843  for the fiscal year in which the notification is received by the
  844  secretary and fiscal years thereafter.
  845         (4) If the corporation receives supplemental funding for
  846  the Guaranty Fund under the provisions of this section, then any
  847  proceeds received by the corporation with respect to a loan in
  848  default, including proceeds from the sale of collateral for such
  849  loan, enforcement of personal guarantees or other pledges to the
  850  corporation to secure such loan, shall first be applied to the
  851  obligation of the corporation to repay the Department of
  852  Transportation pursuant to this section. Until such repayment is
  853  complete, no new bonds may be guaranteed pursuant to this
  854  section.
  855         (5) Prior to the use of the guaranty provided in this
  856  section, and on an annual basis, the corporation must certify in
  857  writing to the State Board of Administration and the Secretary
  858  of Transportation that it has fully implemented the requirements
  859  of this section and s. 288.9607 and the regulations of the
  860  corporation.
  861         Section 8. Section 288.9609, Florida Statutes, is amended
  862  to read:
  863         288.9609 Bonds as legal investments.—All banks, trust
  864  companies, bankers, savings banks and institutions, building and
  865  loan associations, savings and loan associations, investment
  866  companies, and other persons carrying on a banking and
  867  investment business; all insurance companies, insurance
  868  associations, and other persons carrying on an insurance
  869  business; and all executors, administrators, curators, trustees,
  870  and other fiduciaries may legally invest any sinking funds,
  871  moneys, or other funds belonging to them or within their control
  872  in any bonds or other obligations issued by the corporation
  873  pursuant to an interlocal agreement with a public agency of this
  874  state. Such bonds and obligations shall be authorized security
  875  for all public deposits. It is the purpose of this section to
  876  authorize all persons, political subdivisions, and officers,
  877  public and private, to use any funds owned or controlled by them
  878  for the purchase of any such bonds or other obligations. Nothing
  879  contained in this section with regard to legal investments shall
  880  be construed as relieving any person of any duty of exercising
  881  reasonable care in selecting securities.
  882         Section 9. Section 288.9610, Florida Statutes, is amended
  883  to read:
  884         288.9610 Annual reports of Florida Development Finance
  885  Corporation.—By December 1 of each year, the Florida Development
  886  Finance Corporation shall submit to the Governor, the President
  887  of the Senate, the Speaker of the House of Representatives, the
  888  Senate Minority Leader and, the House Minority Leader, and the
  889  city or county activating the Florida Development Finance
  890  Corporation a complete and detailed report setting forth:
  891         (1) The evaluation required in s. 11.45(3)(j).
  892         (2) The operations and accomplishments of the Florida
  893  Development Finance Corporation, including the number of
  894  businesses assisted by the corporation.
  895         (3) Its assets and liabilities at the end of its most
  896  recent fiscal year, including a description of all of its
  897  outstanding revenue bonds.
  898         Section 10. Subsection (1) of section 366.02, Florida
  899  Statutes, is amended to read:
  900         366.02 Definitions.—As used in this chapter:
  901         (1) “Public utility” means every person, corporation,
  902  partnership, association, or other legal entity and their
  903  lessees, trustees, or receivers supplying electricity or gas
  904  (natural, manufactured, or similar gaseous substance) to or for
  905  the public within this state; but the term “public utility” does
  906  not include either a cooperative now or hereafter organized and
  907  existing under the Rural Electric Cooperative Law of the state;
  908  a municipality or any agency thereof; any dependent or
  909  independent special natural gas district; any natural gas
  910  transmission pipeline company making only sales or
  911  transportation delivery of natural gas at wholesale and to
  912  direct industrial consumers; any entity selling or arranging for
  913  sales of natural gas which neither owns nor operates natural gas
  914  transmission or distribution facilities within the state; or a
  915  person supplying liquefied petroleum gas, in either liquid or
  916  gaseous form, irrespective of the method of distribution or
  917  delivery, or owning or operating facilities beyond the outlet of
  918  a meter through which natural gas is supplied for compression
  919  and delivery into motor vehicle fuel tanks or other
  920  transportation containers, unless such person also supplies
  921  electricity or manufactured or natural gas. In addition, the
  922  term “public utility” does not include a developer of a solar
  923  energy generation facility located on the premises of a host
  924  consumer, other than a multifamily residential building, for
  925  purposes of sale to the host consumer for consumption on the
  926  premises only and limited to contiguous property owned or leased
  927  by the consumer, if the solar energy generation facility has a
  928  gross power rating of no greater than 2 megawatts.
  929         Section 11. Section 366.91, Florida Statutes, is amended to
  930  read:
  931         366.91 Renewable energy.—
  932         (1) The Legislature finds that it is in the public interest
  933  to promote the development of renewable energy resources in this
  934  state. renewable energy resources have the potential to help
  935  diversify fuel types to mitigate meet Florida’s growing
  936  dependency on natural gas for electric production, minimize the
  937  volatility of fuel costs, encourage investment within the state,
  938  preserve and create jobs, improve environmental conditions,
  939  displace and reduce the consumption of fossil fuels in the
  940  generation of electricity, and make Florida a leader in new and
  941  innovative technologies.
  942         (2)The Legislature further finds and declares that:
  943         (a) It is in the public interest to vigorously promote the
  944  production of renewable energy within the state;
  945         (b) There is a current and ongoing need for electricity
  946  generated from renewable energy resources;
  947         (c) Based on analysis of past, current, and future
  948  projections of retail electric rates, there is a high degree of
  949  correlation between retail electric rates of Florida public
  950  utilities and avoided cost; and
  951         (d) This section shall be liberally construed in order to
  952  robustly promote and encourage the production of renewable
  953  energy in Florida.
  954         (3)(2) As used in this section, the term:
  955         (a) “Biomass” means a power source that is comprised of,
  956  but not limited to, combustible residues or gases from forest
  957  products manufacturing, waste, byproducts, or products from
  958  agricultural and orchard crops, waste or coproducts from
  959  livestock and poultry operations, waste or byproducts from food
  960  processing, urban wood waste, municipal solid waste, municipal
  961  liquid waste treatment operations, and landfill gas.
  962         (b) “Customer-owned renewable generation” means any and all
  963  an electric generating system or systems located on a customer’s
  964  premises that is primarily intended to offset part or all of the
  965  customer’s electricity requirements with renewable energy.
  966         (c) “Net metering” means a metering and billing methodology
  967  whereby a renewable energy producer that is a consumer of
  968  electricity at a single location, or at multiple locations
  969  within a single public utility’s service area, and that operates
  970  customer-owned renewable generation, is entitled: customer-owned
  971  renewable generation is allowed to offset the customer’s
  972  electricity consumption on site.
  973         1. To use electricity delivered to such utility to offset
  974  the electric energy and demand based charges, including all
  975  adjustment, recovery, and similar such add-on charges, for which
  976  it is billed by the public utility during each billing period;
  977  and
  978         2.To designate the amount or amounts to be offset at each
  979  metering point.
  980         (d) “Renewable energy” means electrical energy produced
  981  from a method that uses one or more of the following fuels or
  982  energy sources: hydrogen produced from sources other than fossil
  983  fuels, biomass, solar energy, geothermal energy, wind energy,
  984  ocean energy, and hydroelectric power. The term includes the
  985  alternative energy resource, waste heat, from sulfuric acid
  986  manufacturing operations, and electrical energy produced using
  987  pipeline-quality synthetic gas produced from waste petroleum
  988  coke with carbon capture and sequestration.
  989         (4)(a)(3) On or before July 1, 2010 January 1, 2006, each
  990  public utility must continuously offer to and shall a purchase
  991  contract to producers of renewable energy at full avoided cost,
  992  as defined in subsection (7), upon request of a renewable energy
  993  producer that meets one or both of the operating requirements
  994  set forth in subsection (6). The commission may shall establish
  995  by rule requirements relating to the purchase of renewable
  996  energy capacity and energy by public utilities from renewable
  997  energy producers and may adopt rules to administer this section.
  998  The contract shall contain payment provisions for energy and
  999  capacity which are based upon the utility’s full avoided costs,
 1000  as defined in s. 366.051; however, capacity payments are not
 1001  required if, due to the operational characteristics of the
 1002  renewable energy generator or the anticipated peak and off-peak
 1003  availability and capacity factor of the utility’s avoided unit,
 1004  the producer is unlikely to provide any capacity value to the
 1005  utility or the electric grid during the contract term. Each
 1006  contract must provide a contract term of at least 10 years.
 1007  Prudent and reasonable costs associated with the purchase of a
 1008  renewable energy contract shall be recoverable recovered from
 1009  the ratepayers of the purchasing contracting utility, without
 1010  differentiation among customer classes, through the appropriate
 1011  cost-recovery clause mechanism administered by the commission.
 1012         (b)Effective July 1, 2010, a renewable energy producer
 1013  that meets one or both of the operation requirements set forth
 1014  in subsection (6) shall be entitled to sell electric energy to a
 1015  public utility at full avoided cost as set forth in subsection
 1016  (7).
 1017         (5)(4) On or before January 1, 2006, each municipal
 1018  electric utility and rural electric cooperative whose annual
 1019  sales, as of July 1, 1993, to retail customers were greater than
 1020  2,000 gigawatt hours must continuously offer a purchase contract
 1021  to producers of renewable energy containing payment provisions
 1022  for energy and capacity which are based upon the utility’s or
 1023  cooperative’s full avoided costs, as determined by the governing
 1024  body of the municipal utility or cooperative; however, capacity
 1025  payments are not required if, due to the operational
 1026  characteristics of the renewable energy generator or the
 1027  anticipated peak and off-peak availability and capacity factor
 1028  of the utility’s avoided unit, the producer is unlikely to
 1029  provide any capacity value to the utility or the electric grid
 1030  during the contract term. Each contract must provide a contract
 1031  term of at least 10 years.
 1032         (6)Operating requirements:
 1033         (a)A renewable energy producer that generates and delivers
 1034  to the grid a fixed amount of electrical capacity at a rate of
 1035  production, such that the amount of energy produced per 1
 1036  megawatt of fixed capacity is 7,000 megawatt hours or more per
 1037  year shall be entitled to sell such fixed amount of capacity and
 1038  energy to any public utility at full avoided costs.
 1039         (b)A renewable energy producer that generates electric
 1040  energy using waste heat from sulfuric acid manufacturing
 1041  operations, such that the amount of electric energy produced at
 1042  the site per 1 megawatt of system generating capacity is 5,500
 1043  megawatt hours or more per year and that exports less than 50
 1044  percent of the total electric energy produced to the grid, shall
 1045  be entitled to sell any excess energy, up to an amount equal to
 1046  the energy used to serve its own requirements, to any public
 1047  utility at full avoided cost.
 1048         (7)It has been found and determined that 80 percent of the
 1049  weighted average of firm service retail electric rates of each
 1050  public utility, including all adjustment, recovery, and similar
 1051  such add-on charges, directly correlates with each utility’s
 1052  full avoided cost for acquiring energy from renewable energy
 1053  producers that meet the operating requirements of subsection
 1054  (6), and is an administratively efficient, transparent, prudent,
 1055  and preferred methodology for calculating full avoided cost. The
 1056  full avoided cost to which all renewable energy producers are
 1057  entitled is and shall be the mathematical product of 0.80 and
 1058  the weighted average of firm service retail electric rates in
 1059  cents per kilowatt hour, including all adjustment, recovery, and
 1060  similar such add-on charges, of the purchasing utility.
 1061         (8)(5) On or before January 1, 2009, each public utility
 1062  shall develop a standardized interconnection agreement and net
 1063  metering program for all customer-owned renewable generation.
 1064  The commission shall establish requirements relating to the
 1065  expedited interconnection and net metering of customer-owned
 1066  renewable generation by public utilities and may adopt rules to
 1067  administer this section.
 1068         (9)(6) On or before July 1, 2009, each municipal electric
 1069  utility and each rural electric cooperative that sells
 1070  electricity at retail shall develop a standardized
 1071  interconnection agreement and net metering program for customer
 1072  owned renewable generation. Each governing authority shall
 1073  establish requirements relating to the expedited interconnection
 1074  and net metering of customer-owned generation. By April 1 of
 1075  each year, each municipal electric utility and rural electric
 1076  cooperative utility serving retail customers shall file a report
 1077  with the commission detailing customer participation in the
 1078  interconnection and net metering program, including, but not
 1079  limited to, the number and total capacity of interconnected
 1080  generating systems and the total energy net metered in the
 1081  previous year.
 1082         (10)(7) Under the provisions of subsections (8) and (9) (5)
 1083  and (6), when a utility purchases power generated from biogas
 1084  produced by the anaerobic digestion of agricultural waste,
 1085  including food waste or other agricultural byproducts, net
 1086  metering shall be available at a single metering point or as a
 1087  part of conjunctive billing of multiple points for a customer at
 1088  a single location, so long as the provision of such service and
 1089  its associated charges, terms, and other conditions are not
 1090  reasonably projected to result in higher cost electric service
 1091  to the utility’s general body of ratepayers or adversely affect
 1092  the adequacy or reliability of electric service to all
 1093  customers, as determined by the commission for public utilities,
 1094  or as determined by the governing authority of the municipal
 1095  electric utility or rural electric cooperative that serves at
 1096  retail.
 1097         (11)(8) A contracting producer of renewable energy producer
 1098  must pay the actual costs of its interconnection with the
 1099  transmission grid or distribution system.
 1100         (12)Action by the commission pursuant to or associated
 1101  with implementing this section shall not be deemed or construed
 1102  to be an action relating to rates or service of utilities
 1103  providing electric service.
 1104         Section 12. Section 366.92, Florida Statutes, is amended to
 1105  read:
 1106         366.92 Florida renewable energy policy.—
 1107         (1) It is the intent of the Legislature to promote the
 1108  development of renewable energy; protect the economic viability
 1109  of Florida’s existing renewable energy facilities; diversify the
 1110  types of fuel used to generate electricity in Florida; lessen
 1111  Florida’s dependence on natural gas and fuel oil for the
 1112  production of electricity; minimize the volatility of fuel
 1113  costs; encourage investment within the state; improve
 1114  environmental conditions; and, at the same time, minimize the
 1115  costs of power supply to electric utilities and their customers.
 1116         (2) As used in this section, the term:
 1117         (a) “Florida renewable energy resources” means renewable
 1118  energy, as defined in s. 377.803, that is produced in Florida.
 1119         (b) “Provider” means a “utility” as defined in s.
 1120  366.8255(1)(a).
 1121         (c) “Renewable energy” means renewable energy as defined in
 1122  s. 366.91(2)(d).
 1123         (d)“Renewable energy credit” or “REC” means a product that
 1124  represents the unbundled, separable, renewable attribute of
 1125  renewable energy produced in Florida and is equivalent to 1
 1126  megawatt-hour of electricity generated by a source of renewable
 1127  energy located in Florida.
 1128         (e)“Renewable portfolio standard” or “RPS” means the
 1129  minimum percentage of total annual retail electricity sales by a
 1130  provider to consumers in Florida that shall be supplied by
 1131  renewable energy produced in Florida.
 1132         (3)The commission shall adopt rules for a renewable
 1133  portfolio standard requiring each provider to supply renewable
 1134  energy to its customers directly, by procuring, or through
 1135  renewable energy credits. In developing the RPS rule, the
 1136  commission shall consult the Department of Environmental
 1137  Protection and the Florida Energy and Climate Commission. The
 1138  rule shall not be implemented until ratified by the Legislature.
 1139  The commission shall present a draft rule for legislative
 1140  consideration by February 1, 2009.
 1141         (a)In developing the rule, the commission shall evaluate
 1142  the current and forecasted levelized cost in cents per kilowatt
 1143  hour through 2020 and current and forecasted installed capacity
 1144  in kilowatts for each renewable energy generation method through
 1145  2020.
 1146         (b)The commission’s rule:
 1147         1.Shall include methods of managing the cost of compliance
 1148  with the renewable portfolio standard, whether through direct
 1149  supply or procurement of renewable power or through the purchase
 1150  of renewable energy credits. The commission shall have
 1151  rulemaking authority for providing annual cost recovery and
 1152  incentive-based adjustments to authorized rates of return on
 1153  common equity to providers to incentivize renewable energy.
 1154  Notwithstanding s. 366.91(3) and (4), upon the ratification of
 1155  the rules developed pursuant to this subsection, the commission
 1156  may approve projects and power sales agreements with renewable
 1157  power producers and the sale of renewable energy credits needed
 1158  to comply with the renewable portfolio standard. In the event of
 1159  any conflict, this subparagraph shall supersede s. 366.91(3) and
 1160  (4). However, nothing in this section shall alter the obligation
 1161  of each public utility to continuously offer a purchase contract
 1162  to producers of renewable energy.
 1163         2.Shall provide for appropriate compliance measures and
 1164  the conditions under which noncompliance shall be excused due to
 1165  a determination by the commission that the supply of renewable
 1166  energy or renewable energy credits was not adequate to satisfy
 1167  the demand for such energy or that the cost of securing
 1168  renewable energy or renewable energy credits was cost
 1169  prohibitive.
 1170         3.May provide added weight to energy provided by wind and
 1171  solar photovoltaic over other forms of renewable energy, whether
 1172  directly supplied or procured or indirectly obtained through the
 1173  purchase of renewable energy credits.
 1174         4.Shall determine an appropriate period of time for which
 1175  renewable energy credits may be used for purposes of compliance
 1176  with the renewable portfolio standard.
 1177         5.Shall provide for monitoring of compliance with and
 1178  enforcement of the requirements of this section.
 1179         6.Shall ensure that energy credited toward compliance with
 1180  the requirements of this section is not credited toward any
 1181  other purpose.
 1182         7.Shall include procedures to track and account for
 1183  renewable energy credits, including ownership of renewable
 1184  energy credits that are derived from a customer-owned renewable
 1185  energy facility as a result of any action by a customer of an
 1186  electric power supplier that is independent of a program
 1187  sponsored by the electric power supplier.
 1188         8.Shall provide for the conditions and options for the
 1189  repeal or alteration of the rule in the event that new
 1190  provisions of federal law supplant or conflict with the rule.
 1191         (c)Beginning on April 1 of the year following final
 1192  adoption of the commission’s renewable portfolio standard rule,
 1193  each provider shall submit a report to the commission describing
 1194  the steps that have been taken in the previous year and the
 1195  steps that will be taken in the future to add renewable energy
 1196  to the provider’s energy supply portfolio. The report shall
 1197  state whether the provider was in compliance with the renewable
 1198  portfolio standard during the previous year and how it will
 1199  comply with the renewable portfolio standard in the upcoming
 1200  year.
 1201         (3)(a)(4)In order to demonstrate the feasibility and
 1202  viability of clean energy systems, The commission shall provide
 1203  for full cost recovery under the environmental cost-recovery
 1204  clause of all reasonable and prudent costs incurred by a
 1205  provider for renewable energy projects that result in a net
 1206  decrease of are zero greenhouse gas emitted in this state
 1207  emitting at the point of generation, up to a total of 110
 1208  megawatts statewide, and for which the provider has secured
 1209  necessary land, zoning permits, and transmission rights within
 1210  the state.
 1211         (b) Such costs shall be deemed reasonable and prudent for
 1212  purposes of cost recovery so long as the provider has obtained
 1213  approval for the renewable energy project pursuant to s. 366.921
 1214  used reasonable and customary industry practices in the design,
 1215  procurement, and construction of the project in a cost-effective
 1216  manner appropriate to the location of the facility. The provider
 1217  shall report to the commission as part of the cost-recovery
 1218  proceedings the construction costs, in-service costs, operating
 1219  and maintenance costs, hourly energy production of the renewable
 1220  energy project, and any other information deemed relevant by the
 1221  commission. Any provider constructing a clean energy facility
 1222  pursuant to this section shall file for cost recovery no later
 1223  than July 1, 2009.
 1224         (4) Pursuant to the approval process under s. 366.921, the
 1225  commission shall approve up to a total of 700 megawatts of
 1226  renewable energy projects for the years 2010, 2011, and 2012,
 1227  with up to a total of 300 megawatts approved in 2010 and up to
 1228  an additional 200 megawatts approved annually in 2011 and 2012,
 1229  as part of new renewable energy projects and an additional 35
 1230  megawatts, with up to 5 megawatts for hydroelectric application
 1231  for 2010, and up to 10 megawatts annually for 2010, 2011, and
 1232  2012, for rooftop or pole-mounted solar energy applications in
 1233  addition to megawatts attributable to renewable energy projects
 1234  approved by the commission for cost recovery before January 1,
 1235  2010. Any megawatts for renewable energy projects designated for
 1236  approval for a specific year that remain available at the end of
 1237  the calendar year shall be carried forward to the succeeding
 1238  year. Notwithstanding s. 403.519, the Legislature finds that
 1239  there is need for these renewable energy resources. This
 1240  legislative finding shall serve as the need determination
 1241  required under s. 403.519 and as the commission’s agency report
 1242  under s. 403.507(4)(a).
 1243         (5)Of the 700 megawatts of renewable energy projects set
 1244  forth in subsection (4), the commission shall provide for full
 1245  cost recovery under the environmental cost-recovery clause for
 1246  any renewable energy purchased from a qualifying facility and
 1247  produced from small-scale renewable energy generation in size
 1248  from 1 kilowatt to 2 megawatts of up to 75 megawatts statewide
 1249  for the year 2011, 50 megawatts for the year 2012, and 50
 1250  megawatts for the year 2013. Such costs shall be deemed
 1251  reasonable and prudent for purposes of cost recovery if the
 1252  commission adopts rules establishing reasonable costs associated
 1253  with harvesting and generating various renewable energy fuel
 1254  types and provides a suitable return for producers. The rules
 1255  must establish differentiated rates for purchase of various
 1256  renewable energy fuel types based on the fuel type technology. A
 1257  provider or producer of renewable energy fuel that is a
 1258  regulated utility or its unregulated affiliates is not eligible
 1259  to participate in the program as provided in this subsection. An
 1260  eligible qualifying facility must be located within the
 1261  territory served by a participating electric utility. The
 1262  commission shall issue a qualifying facility certificate of
 1263  eligibility within 30 days after receipt of an application for a
 1264  producer’s small scale biomass, solar, or wind energy facility,
 1265  and if accompanied by proof that the applicant holds a current
 1266  qualifying facility federal designation and an application fee
 1267  not to exceed $250.
 1268         (6)(a) A developer of solar energy generation may locate a
 1269  solar energy generation facility on the premises of a host
 1270  consumer, other than a multifamily residential building, for
 1271  purposes of sale to the consumer for consumption on the premises
 1272  only, if the solar energy generation facility has a gross power
 1273  rating of no greater than 2 megawatts. For purposes of this
 1274  subsection, the host consumer’s premises shall be limited to
 1275  contiguous property owned or leased by the consumer, without
 1276  regard to interruptions in contiguity caused by easements,
 1277  public thoroughfares, transportation rights-of-way, or utility
 1278  rights-of-way.
 1279         (b) The commission shall adopt rules to administer this
 1280  subsection. In adopting such rules, the commission shall
 1281  establish, at a minimum:
 1282         1. Requirements related to interconnection and metering;
 1283         2. A mechanism for setting rates for any service provided
 1284  to the consumer by the utility if such service is required by
 1285  the consumer, which rates shall ensure that the utility’s
 1286  general body of ratepayers do not subsidize any redundant
 1287  utility generating capacity necessary to serve the consumer; and
 1288         3. Requirements for notice to the commission of the size
 1289  and location of each renewable energy generation facility
 1290  planned under this subsection, the identity and historical and
 1291  projected load characteristics of each host consumer, and any
 1292  other information deemed necessary by the commission to satisfy
 1293  its obligations under s. 364.04(5).
 1294         (c) Beginning January 1, 2011, and no less often than every
 1295  6 months thereafter, the commission shall provide a report to
 1296  the Legislature of the activity under this subsection, which
 1297  shall address the impacts of such activity on the electric power
 1298  grid of the state, individual utility systems, and each
 1299  utility’s general body of ratepayers, and shall include
 1300  recommendations concerning implementation of this program.
 1301         (7)In order to further promote renewable energy, need
 1302  determination pursuant to s. 403.519 is not required if a
 1303  renewable energy generating facility:
 1304         (a) Had a pending site certification application seeking
 1305  approval for up to 100 net megawatts of renewable energy
 1306  projects on or before December 31, 2009; or
 1307         (b) Files a site certification application before January
 1308  1, 2011, for an expansion of an existing renewable energy
 1309  electric generating facility, subject to a total of up to 200
 1310  net megawatts statewide, which is owned by a local governmental
 1311  entity.
 1312         (8)(5) Each municipal electric utility and rural electric
 1313  cooperative shall develop standards for the promotion,
 1314  encouragement, and expansion of the use of renewable energy
 1315  resources and energy conservation and efficiency measures. On or
 1316  before April 1, 2009, and annually thereafter, each municipal
 1317  electric utility and electric cooperative shall submit to the
 1318  commission a report that identifies such standards.
 1319         (9)(6)Nothing in This section does not shall be construed
 1320  to impede or impair terms and conditions of existing contracts.
 1321         (10) Revenues derived from any renewable energy credit,
 1322  carbon credit, or other mechanism that attributes value to the
 1323  production of renewable energy, either existing or hereafter
 1324  devised, received by a provider by virtue of the production or
 1325  purchase of renewable energy for which cost recovery is approved
 1326  under this subsection, shall be shared with the provider’s
 1327  ratepayers such that the ratepayers are credited no less than 75
 1328  percent of such revenues.
 1329         (11)(7) The commission may adopt rules to administer and
 1330  implement the provisions of this section.
 1331         Section 13. Section 366.921, Florida Statutes, is created
 1332  to read:
 1333         366.921Renewable energy; approval process.—
 1334         (1)Providers of renewable energy under s. 366.92(4) must
 1335  acquire commission approval before the construction, licensing,
 1336  and operation of a facility producing such resources or the
 1337  purchase of capacity or energy from a facility producing such
 1338  resources.
 1339         (2)Upon the filing by a provider of a petition for
 1340  approval of a facility, the commission shall schedule a formal
 1341  administrative hearing within 10 days after the filing of the
 1342  petition and vote on the petition within 90 days after such
 1343  filing.
 1344         (3)(a) In determining whether to approve the petition, the
 1345  commission shall consider whether the:
 1346         1. Proposal for the facility requires the use of reasonable
 1347  and customary industry practices in the design, engineering,
 1348  procurement, and construction of the project in a cost-effective
 1349  manner appropriate to the proposed technology and location of
 1350  the facility.
 1351         2. Entity, including a provider, which would engineer,
 1352  design, and construct the proposed facility has the requisite
 1353  technical and financial qualifications, expertise, and
 1354  capability.
 1355         3. Entity, including a provider, which would operate the
 1356  proposed facility has the requisite technical qualifications,
 1357  expertise, and capability.
 1358         4. Provider has submitted the project for competitive bid
 1359  to ensure that it is the most cost-effective alternative that
 1360  meets the criteria of this section and that the projected costs
 1361  are reasonable and prudent for this type of project.
 1362         5. Proposal includes mechanisms to keep costs from
 1363  increasing above the projected amount.
 1364         6. Any new or converted generating facility that uses woody
 1365  biomass as its fuel stock shall ensure that a minimum of 85
 1366  percent of such fuel stock is supplied from urban wood waste,
 1367  logging residuals, and short-rotation energy crops. The
 1368  commission may not approve costs for recovery without ensuring
 1369  that this fuel stock limit is met.
 1370         (b) As used in this subsection, the term:
 1371         1.“Short-rotation energy crops” means plant species whose
 1372  rotation from planting to harvest is 8 years or less and
 1373  generally include eucalyptus, poplar, energy cane, elephant
 1374  grass, switch grass, or other fast-growing plants.
 1375         2.“Woody biomass” means woody material and wood residues
 1376  of all types.
 1377         (4)The commission’s final order approving a facility shall
 1378  include express authorization for annual cost recovery pursuant
 1379  to ss. 366.8255 and 366.92 of the costs determined under this
 1380  section. However, under no circumstances may the total costs of
 1381  all projects approved under this section for any provider result
 1382  in a retail price increase in excess of an amount equal to $1
 1383  per 1,000 kilowatt hours.
 1384         Section 14. Subsection (14) of section 403.503, Florida
 1385  Statutes, is amended to read:
 1386         403.503 Definitions relating to Florida Electrical Power
 1387  Plant Siting Act.—As used in this act:
 1388         (14) “Electrical power plant” means, for the purpose of
 1389  certification, any steam or solar electrical generating facility
 1390  using any process or fuel, including nuclear materials, except
 1391  that this term does not include any steam or solar electrical
 1392  generating facility of less than 75 megawatts in capacity or any
 1393  solar electrical or hydroelectric generating facility of any
 1394  sized capacity unless the applicant for such a facility elects
 1395  to apply for certification under this act. This term also
 1396  includes the site; all associated facilities that will be owned
 1397  by the applicant that are physically connected to the site; all
 1398  associated facilities that are indirectly connected to the site
 1399  by other proposed associated facilities that will be owned by
 1400  the applicant; and associated transmission lines that will be
 1401  owned by the applicant which connect the electrical power plant
 1402  to an existing transmission network or rights-of-way to which
 1403  the applicant intends to connect. At the applicant’s option,
 1404  this term may include any offsite associated facilities that
 1405  will not be owned by the applicant; offsite associated
 1406  facilities that are owned by the applicant but that are not
 1407  directly connected to the site; any proposed terminal or
 1408  intermediate substations or substation expansions connected to
 1409  the associated transmission line; or new transmission lines,
 1410  upgrades, or improvements of an existing transmission line on
 1411  any portion of the applicant’s electrical transmission system
 1412  necessary to support the generation injected into the system
 1413  from the proposed electrical power plant.
 1414         Section 15. Any competitively procured purchased power
 1415  agreement for solar power which is voluntarily executed by an
 1416  investor-owned utility on or before March 1, 2009, shall be
 1417  presumed prudently incurred and the costs exceeding the
 1418  utility’s full avoided costs for the purchased power shall be
 1419  recoverable through the environmental cost-recovery clause if:
 1420         (1) A petition for approval of the purchased power
 1421  agreement was filed with the Public Service Commission on or
 1422  before April 1, 2009;
 1423         (2) The solar energy provider meets all the requirements of
 1424  the Federal Energy Regulatory Commission and applicable utility
 1425  requirements for interconnection with the public utility
 1426  transmission system;
 1427         (3) The solar generating facility is located in Florida;
 1428  and
 1429         (4) The investor-owned utility is entitled to all
 1430  environmental attributes associated with the solar energy
 1431  generation.
 1433  The commission shall immediately consider and approve such
 1434  agreements.
 1435         Section 16. This act shall take effect upon becoming a law.

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