July 10, 2020
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_h7229__
HB 7229

1
A bill to be entitled
2An act relating to economic incentives for energy
3initiatives; amending s. 377.601, F.S.; revising
4legislative intent relating to the state's energy policy;
5amending s. 377.703, F.S.; conforming cross-references;
6amending s. 212.08, F.S.; providing definitions; providing
7sales and use tax exemptions for electric-powered
8automobiles, natural gas vehicles, and fueling stations
9for such automobiles and vehicles; extending the sales and
10use tax exemptions for certain renewable energy
11technologies; amending s. 220.192, F.S.; extending the
12renewable energy technologies investment tax credit and
13applying the credit to certain investments in solar energy
14systems; defining the term "solar energy system"; revising
15the eligible cost limit for investments in biodiesel and
16ethanol; transferring certain duties relating to such tax
17credits from the Department of Environmental Protection to
18the Florida Energy and Climate Commission; amending s.
19220.193, F.S.; extending the renewable energy production
20credit; amending s. 366.02, F.S.; revising the definition
21of the term "public utility" for purposes of regulating
22such utilities; creating s. 366.90, F.S.; providing
23legislative intent relating to renewable energy production
24of electricity; amending s. 366.91, F.S.; deleting
25legislative intent provisions to conform to changes made
26by the act; revising definitions of the terms "biomass"
27and "renewable energy"; requiring public utilities to
28purchase renewable energy from producers at full avoided
29cost under certain circumstances; providing that renewable
30energy producers are entitled to sell electrical energy to
31a public utility at full avoided cost under certain
32circumstances; providing legislative findings; providing
33for the calculation of full avoided cost for such
34purchases of renewable energy; declaring that certain
35actions taken by the Public Service Commission are not
36actions relating to utility rates or services; amending s.
37366.92, F.S.; deleting the legislative intent provisions;
38deleting and revising definitions; deleting provisions for
39the renewable portfolio standard and renewable energy
40credits; providing a mechanism for providers to recover
41costs to produce or purchase specified amounts of
42renewable energy through the environmental cost-recovery
43clause under certain conditions; requiring providers to
44include specified information related to renewable energy
45development in a certain report; authorizing a developer
46of solar energy generation to locate a solar energy
47generation facility on the premises of a host consumer
48under certain circumstances; requiring the commission to
49adopt rules and submit reports to the Legislature;
50amending s. 403.503, F.S.; revising the definition of
51"electrical power plant" for purposes of the Florida
52Electrical Power Plant Siting Act; amending ss. 288.9602
53and 288.9603, F.S.; revising legislative findings and
54declarations and definitions for purposes of the Florida
55Development Finance Corporation Act; amending s. 288.9604,
56F.S.; revising requirements for the establishment and
57organization of the Florida Development Finance
58Corporation; amending s. 288.9605, F.S.; revising the
59powers of the corporation; amending s. 288.9606, F.S.;
60revising requirements for the corporation's issuance of
61revenue bonds; amending s. 288.9607, F.S.; limiting the
62corporation's approval of guaranties for debt service for
63bonds or other indebtedness for any one capital project;
64deleting provisions for the corporation's investment of
65certain funds in the State Transportation Trust Fund;
66authorizing guarantees to be used in conjunction with
67federal guaranty programs; amending s. 288.9608, F.S.;
68creating the Energy, Technology, and Economic Development
69Guaranty Fund; providing for the deposit of certain moneys
70in the fund; deleting requirements for the corporation's
71debt service reserve account and Revenue Bond Guaranty
72Reserve Account; amending ss. 288.9609, 288.9610, 206.46,
73215.47, 339.08, and 339.135, F.S.; conforming provisions
74to changes made by the act; providing for severability;
75providing an effective date.
76
77Be It Enacted by the Legislature of the State of Florida:
78
79     Section 1.  Section 377.601, Florida Statutes, is amended
80to read:
81     377.601  Legislative intent.-
82     (1)  The purpose of the state's energy policy is to ensure
83an adequate and reliable supply of energy for the state in a
84manner that promotes the health and welfare of the public,
85promotes sustainable economic growth, and minimizes and
86mitigates any adverse impacts. The Legislature intends that
87governance of the state's energy policy be efficiently directed
88toward achieving this purpose. The Legislature finds that the
89state's energy security can be increased by lessening dependence
90on foreign oil; that the impacts of global climate change can be
91reduced through the reduction of greenhouse gas emissions; and
92that the implementation of alternative energy technologies can
93be a source of new jobs and employment opportunities for many
94Floridians. The Legislature further finds that the state is
95positioned at the front line against potential impacts of global
96climate change. Human and economic costs of those impacts can be
97averted by global actions and, where necessary, adapted to by a
98concerted effort to make Florida's communities more resilient
99and less vulnerable to these impacts. In focusing the
100government's policy and efforts to benefit and protect our
101state, its citizens, and its resources, the Legislature believes
102that a single government entity with a specific focus on energy
103and climate change is both desirable and advantageous. Further,
104the Legislature finds that energy infrastructure provides the
105foundation for secure and reliable access to the energy supplies
106and services on which Florida depends. Therefore, there is
107significant value to Florida consumers that comes from
108investment in Florida's energy infrastructure that increases
109system reliability, enhances energy independence and
110diversification, stabilizes energy costs, and reduces greenhouse
111gas emissions.
112     (2)  In furtherance of this purpose, the state's energy
113policy shall be implemented through effective, efficient, and
114reliable governance and shall be guided by the following goals
115in order of their priority:
116     (a)  Ensuring an affordable energy supply.
117     (b)  Ensuring adequate supply and capacity.
118     (c)  Ensuring a secure and reliable energy supply.
119     (d)  Minimizing energy cost volatility.
120     (e)  Minimizing the negative impacts of energy production
121on the state's environment, social fabric, and the public health
122and welfare.
123     (f)  Maximizing economic synergies for the state associated
124with its energy policy.
125     (g)  Reducing the net export of energy expenditures.
126     (3)  It is further the policy of the state of Florida to:
127     (a)  Develop and promote the effective use of energy in the
128state, discourage all forms of energy waste, and recognize and
129address the potential of global climate change wherever
130possible.
131     (b)  Play a leading role in developing and instituting
132energy management programs aimed at promoting energy
133conservation, energy security, and the reduction of greenhouse
134gas emissions.
135     (c)  Include energy considerations in all state, regional,
136and local planning.
137     (d)  Utilize and manage effectively energy resources used
138within state agencies.
139     (e)  Encourage local governments to include energy
140considerations in all planning and to support their work in
141promoting energy management programs.
142     (f)  Include the full participation of citizens in the
143development and implementation of energy programs.
144     (g)  Consider in its decisions the energy needs of each
145economic sector, including residential, industrial, commercial,
146agricultural, and governmental uses, and reduce those needs
147whenever possible.
148     (h)  Promote energy education and the public dissemination
149of information on energy and its environmental, economic, and
150social impact.
151     (i)  Encourage the research, development, demonstration,
152and application of alternative energy resources, particularly
153renewable energy resources.
154     (j)  Consider, in its decisionmaking, the social, economic,
155and environmental impacts of energy-related activities,
156including the whole-life-cycle impacts of any potential energy
157use choices, so that detrimental effects of these activities are
158understood and minimized.
159     (k)  Develop and maintain energy emergency preparedness
160plans to minimize the effects of an energy shortage within
161Florida.
162     Section 2.  Subsection (1) and paragraph (f) of subsection
163(2) of section 377.703, Florida Statutes, is amended to read:
164     377.703  Additional functions of the Florida Energy and
165Climate Commission.-
166     (1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
167demand questions have become a major area of concern to the
168state which must be dealt with by effective and well-coordinated
169state action, it is the intent of the Legislature to promote the
170efficient, effective, and economical management of energy
171problems, centralize energy coordination responsibilities,
172pinpoint responsibility for conducting energy programs, and
173ensure the accountability of state agencies for the
174implementation of s. 377.601(2), the state energy policy. It is
175the specific intent of the Legislature that nothing in this act
176shall in any way change the powers, duties, and responsibilities
177assigned by the Florida Electrical Power Plant Siting Act, part
178II of chapter 403, or the powers, duties, and responsibilities
179of the Florida Public Service Commission.
180     (2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
181commission shall perform the following functions consistent with
182the development of a state energy policy:
183     (f)  The commission shall submit an annual report to the
184Governor and the Legislature reflecting its activities and
185making recommendations of policies for improvement of the
186state's response to energy supply and demand and its effect on
187the health, safety, and welfare of the people of Florida. The
188report shall include a report from the Florida Public Service
189Commission on electricity and natural gas and information on
190energy conservation programs conducted and underway in the past
191year and shall include recommendations for energy conservation
192programs for the state, including, but not limited to, the
193following factors:
194     1.  Formulation of specific recommendations for improvement
195in the efficiency of energy utilization in governmental,
196residential, commercial, industrial, and transportation sectors.
197     2.  Collection and dissemination of information relating to
198energy conservation.
199     3.  Development and conduct of educational and training
200programs relating to energy conservation.
201     4.  An analysis of the ways in which state agencies are
202seeking to implement s. 377.601(2), the state energy policy, and
203recommendations for better fulfilling this policy.
204     Section 3.  Paragraph (ccc) of subsection (7) of section
205212.08, Florida Statutes, is amended to read:
206     212.08  Sales, rental, use, consumption, distribution, and
207storage tax; specified exemptions.-The sale at retail, the
208rental, the use, the consumption, the distribution, and the
209storage to be used or consumed in this state of the following
210are hereby specifically exempt from the tax imposed by this
211chapter.
212     (7)  MISCELLANEOUS EXEMPTIONS.-Exemptions provided to any
213entity by this chapter do not inure to any transaction that is
214otherwise taxable under this chapter when payment is made by a
215representative or employee of the entity by any means,
216including, but not limited to, cash, check, or credit card, even
217when that representative or employee is subsequently reimbursed
218by the entity. In addition, exemptions provided to any entity by
219this subsection do not inure to any transaction that is
220otherwise taxable under this chapter unless the entity has
221obtained a sales tax exemption certificate from the department
222or the entity obtains or provides other documentation as
223required by the department. Eligible purchases or leases made
224with such a certificate must be in strict compliance with this
225subsection and departmental rules, and any person who makes an
226exempt purchase with a certificate that is not in strict
227compliance with this subsection and the rules is liable for and
228shall pay the tax. The department may adopt rules to administer
229this subsection.
230     (ccc)  Equipment, machinery, and other materials for
231renewable energy technologies.-
232     1.  As used in this paragraph, the term:
233     a.  "Biodiesel" means the mono-alkyl esters of long-chain
234fatty acids derived from plant or animal matter for use as a
235source of energy and meeting the specifications for biodiesel
236and biodiesel blends with petroleum products as adopted by the
237Department of Agriculture and Consumer Services. Biodiesel may
238refer to biodiesel blends designated BXX, where XX represents
239the volume percentage of biodiesel fuel in the blend.
240     b.  "Electric-powered automobile" means an automobile
241powered solely by electricity that is approved by the Federal
242Government for highway travel.
243     c.b.  "Ethanol" means an anhydrous denatured alcohol
244produced by the conversion of carbohydrates meeting the
245specifications for fuel ethanol and fuel ethanol blends with
246petroleum products as adopted by the Department of Agriculture
247and Consumer Services. Ethanol may refer to fuel ethanol blends
248designated EXX, where XX represents the volume percentage of
249fuel ethanol in the blend.
250     d.c.  "Hydrogen fuel cells" means equipment using hydrogen
251or a hydrogen-rich fuel in an electrochemical process to
252generate energy, electricity, or the transfer of heat.
253     e.  "Natural gas vehicle" means an automobile or other
254motor vehicle powered by natural gas or compressed natural gas.
255     2.  The sale or use of the following in the state is exempt
256from the tax imposed by this chapter:
257     a.  Natural gas vehicles, compressed natural gas fueling
258stations, electric-powered automobiles, and electric-fueling
259stations for automobiles, up to a limit of $2 million in tax
260each state fiscal year for all taxpayers Hydrogen-powered
261vehicles, materials incorporated into hydrogen-powered vehicles,
262and hydrogen-fueling stations, up to a limit of $2 million in
263tax each state fiscal year for all taxpayers.
264     b.  Commercial stationary hydrogen fuel cells, up to a
265limit of $1 million in tax each state fiscal year for all
266taxpayers.
267     c.  Materials used in the distribution of biodiesel (B10-
268B100) and ethanol (E10-E100), including fueling infrastructure,
269transportation, and storage, up to a limit of $1 million in tax
270each state fiscal year for all taxpayers. Gasoline fueling
271station pump retrofits for ethanol (E10-E100) distribution
272qualify for the exemption provided in this sub-subparagraph.
273     3.  The Florida Energy and Climate Commission shall provide
274to the department a list of items eligible for the exemption
275provided in this paragraph.
276     4.a.  The exemption provided in this paragraph shall be
277available to a purchaser only through a refund of previously
278paid taxes. An eligible item is subject to refund one time. A
279person who has received a refund on an eligible item shall
280notify the next purchaser of the item that such item is no
281longer eligible for a refund of paid taxes. This notification
282shall be provided to each subsequent purchaser on the sales
283invoice or other proof of purchase.
284     b.  To be eligible to receive the exemption provided in
285this paragraph, a purchaser shall file an application with the
286Florida Energy and Climate Commission. The application shall be
287developed by the Florida Energy and Climate Commission, in
288consultation with the department, and shall require:
289     (I)  The name and address of the person claiming the
290refund.
291     (II)  A specific description of the purchase for which a
292refund is sought, including, when applicable, a serial number or
293other permanent identification number.
294     (III)  The sales invoice or other proof of purchase showing
295the amount of sales tax paid, the date of purchase, and the name
296and address of the sales tax dealer from whom the property was
297purchased.
298     (IV)  A sworn statement that the information provided is
299accurate and that the requirements of this paragraph have been
300met.
301     c.  Within 30 days after receipt of an application, the
302Florida Energy and Climate Commission shall review the
303application and shall notify the applicant of any deficiencies.
304Upon receipt of a completed application, the Florida Energy and
305Climate Commission shall evaluate the application for exemption
306and issue a written certification that the applicant is eligible
307for a refund or issue a written denial of such certification
308within 60 days after receipt of the application. The Florida
309Energy and Climate Commission shall provide the department with
310a copy of each certification issued upon approval of an
311application.
312     d.  Each certified applicant shall be responsible for
313forwarding a certified copy of the application and copies of all
314required documentation to the department within 6 months after
315certification by the Florida Energy and Climate Commission.
316     e.  A refund approved pursuant to this paragraph shall be
317made within 30 days after formal approval by the department.
318     f.  The Florida Energy and Climate Commission may adopt the
319form for the application for a certificate, requirements for the
320content and format of information submitted to the Florida
321Energy and Climate Commission in support of the application,
322other procedural requirements, and criteria by which the
323application will be determined by rule. The department may adopt
324all other rules pursuant to ss. 120.536(1) and 120.54 to
325administer this paragraph, including rules establishing
326additional forms and procedures for claiming this exemption.
327     g.  The Florida Energy and Climate Commission shall be
328responsible for ensuring that the total amounts of the
329exemptions authorized do not exceed the limits as specified in
330subparagraph 2.
331     5.  The Florida Energy and Climate Commission shall
332determine and publish on a regular basis the amount of sales tax
333funds remaining in each fiscal year.
334     6.  This paragraph expires July 1, 2016 2010.
335     Section 4.  Paragraph (c) of subsection (1) of section
336220.192, Florida Statutes, is amended, paragraph (f) of that
337subsection is redesignated as paragraph (g), a new paragraph (f)
338is added to that subsection, and subsections (2), (4), and (5)
339of that section are amended, to read:
340     220.192  Renewable energy technologies investment tax
341credit.-
342     (1)  DEFINITIONS.-For purposes of this section, the term:
343     (c)  "Eligible costs" means:
344     1.  Seventy-five percent of all capital costs, operation
345and maintenance costs, and research and development costs
346incurred between July 1, 2006, and June 30, 2016 2010, up to a
347limit of $3 million per state fiscal year for all taxpayers, in
348connection with an investment in hydrogen-powered vehicles and
349hydrogen vehicle fueling stations in the state, including, but
350not limited to, the costs of constructing, installing, and
351equipping such technologies in the state.
352     2.  Seventy-five percent of all capital costs, operation
353and maintenance costs, and research and development costs
354incurred between July 1, 2006, and June 30, 2016 2010, up to a
355limit of $1.5 million per state fiscal year for all taxpayers,
356and limited to a maximum of $12,000 per fuel cell, in connection
357with an investment in commercial stationary hydrogen fuel cells
358in the state, including, but not limited to, the costs of
359constructing, installing, and equipping such technologies in the
360state.
361     3.  Seventy-five percent of all capital costs, operation
362and maintenance costs, and research and development costs
363incurred between July 1, 2006, and June 30, 2016 2010, up to a
364limit of $6 $6.5 million per state fiscal year for all
365taxpayers, in connection with an investment in the production,
366storage, and distribution of biodiesel (B10-B100) and ethanol
367(E10-E100) in the state, including the costs of constructing,
368installing, and equipping such technologies in the state.
369Gasoline fueling station pump retrofits for ethanol (E10-E100)
370distribution qualify as an eligible cost under this
371subparagraph.
372     4.  Fifty percent of all capital costs incurred between
373July 1, 2010, and June 30, 2016, in connection with an
374investment in solar energy systems in the state, up to a limit
375of $500,000 per system and up to a limit of $7.5 million per
376state fiscal year for all taxpayers. To be eligible, such system
377must comply with state interconnection standards as provided by
378the Public Service Commission. The eligible costs shall be
379reapportioned equally over 5 years.
380     (f)  "Solar energy system" means equipment that provides
381for the collection and use of incident solar energy for water
382heating, space heating or cooling, or other applications that
383would normally require a conventional source of energy such as
384petroleum products, natural gas, or electricity that performs
385primarily with solar energy. In other systems in which solar
386energy is used in a supplemental way, only those components that
387collect and transfer solar energy are included in this
388definition.
389     (2)  TAX CREDIT.-
390     (a)  For tax years beginning on or after January 1, 2007, a
391credit against the tax imposed by this chapter shall be granted
392in an amount equal to the eligible costs defined in
393subparagraphs (1)(c)1.-3. Such credits may be used in tax years
394beginning January 1, 2007, and ending December 31, 2016 2010,
395after which the credit shall expire. If the credit is not fully
396used in any one tax year because of insufficient tax liability
397on the part of the corporation, the unused amount may be carried
398forward and used in tax years beginning January 1, 2007, and
399ending December 31, 2018 2012, after which the credit carryover
400expires and may not be used. A taxpayer that files a
401consolidated return in this state as a member of an affiliated
402group under s. 220.131(1) may be allowed the credit on a
403consolidated return basis up to the amount of tax imposed upon
404the consolidated group. Any eligible cost for which a credit is
405claimed and which is deducted or otherwise reduces federal
406taxable income shall be added back in computing adjusted federal
407income under s. 220.13.
408     (b)  For tax years beginning on or after January 1, 2010, a
409credit against the tax imposed by this chapter shall be granted
410in an amount equal to the eligible costs defined in subparagraph
411(1)(c)4. Such credits may be used in tax years beginning January
4121, 2010, and ending December 31, 2016, after which the credit
413shall expire. If the credit is not fully used in any one tax
414year because of insufficient tax liability on the part of the
415corporation, the unused amount may be carried forward and used
416in tax years beginning January 1, 2010, and ending December 31,
4172021, after which the credit carryover expires and may not be
418used. A taxpayer that files a consolidated return in this state
419as a member of an affiliated group under s. 220.131(1) may be
420allowed the credit on a consolidated return basis up to the
421amount of tax imposed upon the consolidated group. Any eligible
422cost for which a credit is claimed and which is deducted or
423otherwise reduces federal taxable income shall be added back in
424computing adjusted federal income under s. 220.13.
425     (4)  TAXPAYER APPLICATION PROCESS.-To claim a credit under
426this section, each taxpayer must apply to the Florida Energy and
427Climate Commission Department of Environmental Protection for an
428allocation of each type of annual credit by the date established
429by the Florida Energy and Climate Commission Department of
430Environmental Protection. The application form may be
431established by the Florida Energy and Climate Commission
432Department of Environmental Protection and shall include an
433affidavit from each taxpayer certifying that all information
434contained in the application, including all records of eligible
435costs claimed as the basis for the tax credit, are true and
436correct. Approval of the credits under this section shall be
437accomplished on a first-come, first-served basis, based upon the
438date complete applications are received by the Florida Energy
439and Climate Commission Department of Environmental Protection. A
440taxpayer shall submit only one complete application based upon
441eligible costs incurred within a particular state fiscal year.
442Incomplete placeholder applications will not be accepted and
443will not secure a place in the first-come, first-served
444application line. If a taxpayer does not receive a tax credit
445allocation due to the exhaustion of the annual tax credit
446authorizations, then such taxpayer may reapply in the following
447year for those eligible costs and will have priority over other
448applicants for the allocation of credits.
449     (5)  ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF
450CREDITS.-
451     (a)  In addition to its existing audit and investigation
452authority, the Department of Revenue may perform any additional
453financial and technical audits and investigations, including
454examining the accounts, books, and records of the tax credit
455applicant, that are necessary to verify the eligible costs
456included in the tax credit return and to ensure compliance with
457this section. The Florida Energy and Climate Commission
458Department of Environmental Protection shall provide technical
459assistance when requested by the Department of Revenue on any
460technical audits or examinations performed pursuant to this
461section.
462     (b)  It is grounds for forfeiture of previously claimed and
463received tax credits if the Department of Revenue determines, as
464a result of either an audit or examination or from information
465received from the Florida Energy and Climate Commission
466Department of Environmental Protection, that a taxpayer received
467tax credits pursuant to this section to which the taxpayer was
468not entitled. The taxpayer is responsible for returning
469forfeited tax credits to the Department of Revenue, and such
470funds shall be paid into the General Revenue Fund of the state.
471     (c)  The Florida Energy and Climate Commission Department
472of Environmental Protection may revoke or modify any written
473decision granting eligibility for tax credits under this section
474if it is discovered that the tax credit applicant submitted any
475false statement, representation, or certification in any
476application, record, report, plan, or other document filed in an
477attempt to receive tax credits under this section. The Florida
478Energy and Climate Commission Department of Environmental
479Protection shall immediately notify the Department of Revenue of
480any revoked or modified orders affecting previously granted tax
481credits. Additionally, the taxpayer must notify the Department
482of Revenue of any change in its tax credit claimed.
483     (d)  The taxpayer shall file with the Department of Revenue
484an amended return or such other report as the Department of
485Revenue prescribes by rule and shall pay any required tax and
486interest within 60 days after the taxpayer receives notification
487from the Florida Energy and Climate Commission Department of
488Environmental Protection that previously approved tax credits
489have been revoked or modified. If the revocation or modification
490order is contested, the taxpayer shall file an amended return or
491other report as provided in this paragraph within 60 days after
492a final order is issued following proceedings.
493     (e)  A notice of deficiency may be issued by the Department
494of Revenue at any time within 3 years after the taxpayer
495receives formal notification from the Florida Energy and Climate
496Commission Department of Environmental Protection that
497previously approved tax credits have been revoked or modified.
498If a taxpayer fails to notify the Department of Revenue of any
499changes to its tax credit claimed, a notice of deficiency may be
500issued at any time.
501     Section 5.  Paragraphs (b) and (g) of subsection (3) of
502section 220.193, Florida Statutes, are amended to read:
503     220.193  Florida renewable energy production credit.-
504     (3)  An annual credit against the tax imposed by this
505section shall be allowed to a taxpayer, based on the taxpayer's
506production and sale of electricity from a new or expanded
507Florida renewable energy facility. For a new facility, the
508credit shall be based on the taxpayer's sale of the facility's
509entire electrical production. For an expanded facility, the
510credit shall be based on the increases in the facility's
511electrical production that are achieved after May 1, 2006.
512     (b)  The credit may be claimed for electricity produced and
513sold on or after January 1, 2007. Beginning in 2008 and
514continuing until 2017 2011, each taxpayer claiming a credit
515under this section must first apply to the department by
516February 1 of each year for an allocation of available credit.
517The department, in consultation with the commission, shall
518develop an application form. The application form shall, at a
519minimum, require a sworn affidavit from each taxpayer certifying
520the increase in production and sales that form the basis of the
521application and certifying that all information contained in the
522application is true and correct.
523     (g)  Notwithstanding any other provision of this section,
524credits for the production and sale of electricity from a new or
525expanded Florida renewable energy facility may be earned between
526January 1, 2007, and June 30, 2016 2010. The combined total
527amount of tax credits which may be granted for all taxpayers
528under this section is limited to $5 million per state fiscal
529year.
530     Section 6.  Section 366.02, Florida Statutes, is amended to
531read:
532     366.02  Definitions.-As used in this chapter, the term:
533     (1)  "Public utility" means every person, corporation,
534partnership, association, or other legal entity and their
535lessees, trustees, or receivers supplying electricity or gas
536(natural, manufactured, or similar gaseous substance) to or for
537the public within this state.; but The term "public utility"
538does not include: either
539     (a)  A cooperative now or hereafter organized and existing
540under the Rural Electric Cooperative Law of the state.;
541     (b)  A municipality or any agency thereof.;
542     (c)  Any dependent or independent special natural gas
543district.;
544     (d)  Any natural gas transmission pipeline company making
545only sales or transportation delivery of natural gas at
546wholesale and to direct industrial consumers.;
547     (e)  Any entity selling or arranging for sales of natural
548gas which neither owns nor operates natural gas transmission or
549distribution facilities within the state.; or
550     (f)  A person supplying liquefied petroleum gas, in either
551liquid or gaseous form, irrespective of the method of
552distribution or delivery, or owning or operating facilities
553beyond the outlet of a meter through which natural gas is
554supplied for compression and delivery into motor vehicle fuel
555tanks or other transportation containers, unless such person
556also supplies electricity or manufactured or natural gas.
557     (g)  The developer of a solar energy generation facility
558that has a gross power rating of 2 megawatts or less, is located
559on the premises of a host consumer, and supplies electricity
560exclusively for sale to the host consumer for consumption only
561on such premises and contiguous property owned or leased by the
562host consumer, regardless of interruptions in contiguity caused
563by easements, public thoroughfares, transportation rights-of-
564way, or utility rights-of-way, except if such premises or
565contiguous property includes a multifamily residential building.
566     (2)  "Electric utility" means any municipal electric
567utility, investor-owned electric utility, or rural electric
568cooperative which owns, maintains, or operates an electric
569generation, transmission, or distribution system within the
570state.
571     (3)  "Commission" means the Florida Public Service
572Commission.
573     Section 7.  Section 366.90, Florida Statutes, is created to
574read:
575     366.90  Renewable energy for electricity production.-In
576furtherance of the energy policy goals established in s.
577377.601, the Legislature finds that it is in the public interest
578to promote the development of renewable energy resources in the
579state, for purposes of electricity production, through the
580mechanisms established in ss. 366.91 and 366.92. The Legislature
581further finds that renewable energy resources have the potential
582to help diversify fuel types to alleviate the state's growing
583dependence on natural gas and other fossil fuels for the
584production of electricity, minimize the volatility of fuel
585costs, encourage investment within the state, improve
586environmental conditions, and make the state a leader in new and
587innovative technologies.
588     Section 8.  Section 366.91, Florida Statutes, is amended to
589read:
590     366.91  Renewable energy.-
591     (1)  The Legislature finds that it is in the public
592interest to promote the development of renewable energy
593resources in this state. Renewable energy resources have the
594potential to help diversify fuel types to meet Florida's growing
595dependency on natural gas for electric production, minimize the
596volatility of fuel costs, encourage investment within the state,
597improve environmental conditions, and make Florida a leader in
598new and innovative technologies.
599     (1)(2)  As used in this section, the term:
600     (a)  "Biomass" means a power source that is comprised of,
601but not limited to, combustible residues or gases from forest
602products manufacturing, waste, byproducts, or products from
603agricultural and orchard crops, waste or coproducts from
604livestock and poultry operations, waste or byproducts from food
605processing, recycling byproducts, urban wood waste, municipal
606solid waste, municipal liquid waste treatment operations, and
607landfill gas.
608     (b)  "Customer-owned renewable generation" means an
609electric generating system located on a customer's premises that
610is primarily intended to offset part or all of the customer's
611electricity requirements with renewable energy.
612     (c)  "Net metering" means a metering and billing
613methodology whereby customer-owned renewable generation is
614allowed to offset the customer's electricity consumption on
615site.
616     (d)  "Renewable energy" means electrical energy produced
617from a method that uses one or more of the following fuels or
618energy sources: hydrogen produced from sources other than fossil
619fuels, biomass, solar energy, geothermal energy, wind energy,
620ocean energy, and hydroelectric power. The term includes the
621alternative energy resource, waste heat, from sulfuric acid
622manufacturing operations and electrical energy produced using
623pipeline-quality synthetic gas produced from waste petroleum
624coke with carbon capture and sequestration.
625     (2)(a)(3)  On or before July 1, 2010 January 1, 2006, each
626public utility must continuously offer to a purchase and must
627purchase contract to producers of renewable energy at the full
628avoided cost calculated as provided in paragraph (5)(b), upon
629request of a renewable energy producer that meets the operating
630requirements of paragraph (4)(a) or paragraph (4)(b). The
631commission may shall establish by rule requirements relating to
632the purchase of renewable energy capacity and energy by public
633utilities from renewable energy producers and may adopt rules to
634administer this section. The contract shall contain payment
635provisions for energy and capacity which are based upon the
636utility's full avoided costs, as defined in s. 366.051; however,
637capacity payments are not required if, due to the operational
638characteristics of the renewable energy generator or the
639anticipated peak and off-peak availability and capacity factor
640of the utility's avoided unit, the producer is unlikely to
641provide any capacity value to the utility or the electric grid
642during the contract term. Each contract must provide a contract
643term of at least 10 years. Prudent and reasonable costs
644associated with the purchase of a renewable energy contract
645shall be recoverable recovered from the ratepayers of the
646purchasing contracting utility, without differentiation among
647customer classes, through the appropriate cost-recovery clause
648mechanism administered by the commission.
649     (b)  Effective July 1, 2010, a renewable energy producer
650that meets the operating requirements in paragraph (4)(a) or
651paragraph (4)(b) is entitled to sell electrical energy to a
652public utility at full avoided cost calculated as provided in
653paragraph (5)(b).
654     (3)(4)  On or before January 1, 2006, each municipal
655electric utility and rural electric cooperative whose annual
656sales, as of July 1, 1993, to retail customers were greater than
6572,000 gigawatt hours must continuously offer a purchase contract
658to producers of renewable energy containing payment provisions
659for energy and capacity which are based upon the utility's or
660cooperative's full avoided costs, as determined by the governing
661body of the municipal utility or cooperative; however, capacity
662payments are not required if, due to the operational
663characteristics of the renewable energy generator or the
664anticipated peak and off-peak availability and capacity factor
665of the utility's avoided unit, the producer is unlikely to
666provide any capacity value to the utility or the electric grid
667during the contract term. Each contract must provide a contract
668term of at least 10 years.
669     (4)(a)  A renewable energy producer that generates and
670delivers to the grid a fixed amount of electrical capacity at a
671rate of production, such that the amount of energy produced per
6721 megawatt of fixed capacity is 7,000 megawatt hours or more per
673year, is entitled to sell to any public utility at full avoided
674cost such fixed amount of capacity and energy.
675     (b)  A renewable energy producer that generates electrical
676energy using waste heat from sulfuric acid manufacturing
677operations, such that the amount of electrical energy produced
678at the site per 1 megawatt of system generating capacity is
6795,500 megawatt hours or more per year and that exports less than
68050 percent of the total electrical energy produced to the grid,
681is entitled to sell to any public utility at full avoided cost
682any excess energy up to an amount equal to the energy used to
683serve its own requirements.
684     (5)(a)  The Legislature finds that, based on analysis of
685past, current, and future projections of retail electric rates,
686a high degree of correlation exists between the retail electric
687rates of public utilities in the state and avoided cost. The
688Legislature further finds that 80 percent of the weighted
689average of firm service retail electric rates of each public
690utility, including all adjustment, recovery, and similar add-on
691charges, directly correlates with each utility's full avoided
692cost for acquiring energy from renewable energy producers that
693meet the operating requirements of paragraph (4)(a) or paragraph
694(4)(b) and that this 80-percent calculation is an
695administratively efficient, transparent, prudent, and preferred
696methodology for calculating full avoided cost.
697     (b)  The full avoided cost to which such renewable energy
698producers are entitled shall be calculated by multiplying 0.80
699by the weighted average of firm service retail electric rates in
700cents per kilowatt hour, including all adjustment, recovery, and
701similar add-on charges, of the purchasing utility.
702     (6)(5)  On or before January 1, 2009, each public utility
703shall develop a standardized interconnection agreement and net
704metering program for customer-owned renewable generation. The
705commission shall establish requirements relating to the
706expedited interconnection and net metering of customer-owned
707renewable generation by public utilities and may adopt rules to
708administer this section.
709     (7)(6)  On or before July 1, 2009, each municipal electric
710utility and each rural electric cooperative that sells
711electricity at retail shall develop a standardized
712interconnection agreement and net metering program for customer-
713owned renewable generation. Each governing authority shall
714establish requirements relating to the expedited interconnection
715and net metering of customer-owned generation. By April 1 of
716each year, each municipal electric utility and rural electric
717cooperative utility serving retail customers shall file a report
718with the commission detailing customer participation in the
719interconnection and net metering program, including, but not
720limited to, the number and total capacity of interconnected
721generating systems and the total energy net metered in the
722previous year.
723     (8)(7)  Under the provisions of subsections (6) and (7) (5)
724and (6), when a utility purchases power generated from biogas
725produced by the anaerobic digestion of agricultural waste,
726including food waste or other agricultural byproducts, net
727metering shall be available at a single metering point or as a
728part of conjunctive billing of multiple points for a customer at
729a single location, so long as the provision of such service and
730its associated charges, terms, and other conditions are not
731reasonably projected to result in higher cost electric service
732to the utility's general body of ratepayers or adversely affect
733the adequacy or reliability of electric service to all
734customers, as determined by the commission for public utilities,
735or as determined by the governing authority of the municipal
736electric utility or rural electric cooperative that serves at
737retail.
738     (9)(8)  A contracting producer of renewable energy producer
739must pay the actual costs of its interconnection with the
740transmission grid or distribution system.
741     (10)  An action taken by the commission under this section
742is not an action relating to rates or services of utilities
743providing electrical service.
744     Section 9.  Section 366.92, Florida Statutes, is amended to
745read:
746     366.92  Florida renewable energy policy.-
747     (1)  It is the intent of the Legislature to promote the
748development of renewable energy; protect the economic viability
749of Florida's existing renewable energy facilities; diversify the
750types of fuel used to generate electricity in Florida; lessen
751Florida's dependence on natural gas and fuel oil for the
752production of electricity; minimize the volatility of fuel
753costs; encourage investment within the state; improve
754environmental conditions; and, at the same time, minimize the
755costs of power supply to electric utilities and their customers.
756     (1)(2)  As used in this section, the term:
757     (a)  "Florida renewable energy resources" means renewable
758energy, as defined in s. 377.803, that is produced in Florida.
759     (a)(b)  "Provider" means a "utility" as defined in s.
760366.8255(1)(a).
761     (b)(c)  "Renewable energy" means renewable energy as
762defined in s. 366.91(2)(d) that is produced in the state.
763     (d)  "Renewable energy credit" or "REC" means a product
764that represents the unbundled, separable, renewable attribute of
765renewable energy produced in Florida and is equivalent to 1
766megawatt-hour of electricity generated by a source of renewable
767energy located in Florida.
768     (e)  "Renewable portfolio standard" or "RPS" means the
769minimum percentage of total annual retail electricity sales by a
770provider to consumers in Florida that shall be supplied by
771renewable energy produced in Florida.
772     (3)  The commission shall adopt rules for a renewable
773portfolio standard requiring each provider to supply renewable
774energy to its customers directly, by procuring, or through
775renewable energy credits. In developing the RPS rule, the
776commission shall consult the Department of Environmental
777Protection and the Florida Energy and Climate Commission. The
778rule shall not be implemented until ratified by the Legislature.
779The commission shall present a draft rule for legislative
780consideration by February 1, 2009.
781     (a)  In developing the rule, the commission shall evaluate
782the current and forecasted levelized cost in cents per kilowatt
783hour through 2020 and current and forecasted installed capacity
784in kilowatts for each renewable energy generation method through
7852020.
786     (b)  The commission's rule:
787     1.  Shall include methods of managing the cost of
788compliance with the renewable portfolio standard, whether
789through direct supply or procurement of renewable power or
790through the purchase of renewable energy credits. The commission
791shall have rulemaking authority for providing annual cost
792recovery and incentive-based adjustments to authorized rates of
793return on common equity to providers to incentivize renewable
794energy. Notwithstanding s. 366.91(3) and (4), upon the
795ratification of the rules developed pursuant to this subsection,
796the commission may approve projects and power sales agreements
797with renewable power producers and the sale of renewable energy
798credits needed to comply with the renewable portfolio standard.
799In the event of any conflict, this subparagraph shall supersede
800s. 366.91(3) and (4). However, nothing in this section shall
801alter the obligation of each public utility to continuously
802offer a purchase contract to producers of renewable energy.
803     2.  Shall provide for appropriate compliance measures and
804the conditions under which noncompliance shall be excused due to
805a determination by the commission that the supply of renewable
806energy or renewable energy credits was not adequate to satisfy
807the demand for such energy or that the cost of securing
808renewable energy or renewable energy credits was cost
809prohibitive.
810     3.  May provide added weight to energy provided by wind and
811solar photovoltaic over other forms of renewable energy, whether
812directly supplied or procured or indirectly obtained through the
813purchase of renewable energy credits.
814     4.  Shall determine an appropriate period of time for which
815renewable energy credits may be used for purposes of compliance
816with the renewable portfolio standard.
817     5.  Shall provide for monitoring of compliance with and
818enforcement of the requirements of this section.
819     6.  Shall ensure that energy credited toward compliance
820with the requirements of this section is not credited toward any
821other purpose.
822     7.  Shall include procedures to track and account for
823renewable energy credits, including ownership of renewable
824energy credits that are derived from a customer-owned renewable
825energy facility as a result of any action by a customer of an
826electric power supplier that is independent of a program
827sponsored by the electric power supplier.
828     8.  Shall provide for the conditions and options for the
829repeal or alteration of the rule in the event that new
830provisions of federal law supplant or conflict with the rule.
831     (c)  Beginning on April 1 of the year following final
832adoption of the commission's renewable portfolio standard rule,
833each provider shall submit a report to the commission describing
834the steps that have been taken in the previous year and the
835steps that will be taken in the future to add renewable energy
836to the provider's energy supply portfolio. The report shall
837state whether the provider was in compliance with the renewable
838portfolio standard during the previous year and how it will
839comply with the renewable portfolio standard in the upcoming
840year.
841     (2)(4)  Subject to the provisions of this subsection In
842order to demonstrate the feasibility and viability of clean
843energy systems, the commission shall provide for full cost
844recovery under the environmental cost-recovery clause of all
845reasonable and prudent costs incurred by a provider to produce
846or purchase for renewable energy for purposes of supplying
847electrical energy to its retail customers projects that are zero
848greenhouse gas emitting at the point of generation, up to a
849total of 110 megawatts statewide, and for which the provider has
850secured necessary land, zoning permits, and transmission rights
851within the state. Such costs shall be deemed reasonable and
852prudent for purposes of cost recovery so long as the provider
853has used reasonable and customary industry practices in the
854design, procurement, and construction of the project in a cost-
855effective manner appropriate to the location of the facility.
856The provider shall report to the commission as part of the cost-
857recovery proceedings the construction costs, in-service costs,
858operating and maintenance costs, hourly energy production of the
859renewable energy project, and any other information deemed
860relevant by the commission. Any provider constructing a clean
861energy facility pursuant to this section shall file for cost
862recovery no later than July 1, 2009.
863     (a)  A provider may petition the commission through
864December 31, 2013, for recovery of costs to produce or purchase
865up to a total of 735 megawatts of renewable energy statewide,
866subject to the cost cap in paragraph (d). If a provider does not
867seek approval to produce or purchase the total amount of
868renewable energy capacity designated for a specific period under
869this paragraph, the remaining capacity designated for that
870period shall be carried forward to the succeeding period but not
871beyond December 31, 2013. A provider may petition the
872commission:
873     1.  Beginning July 1, 2010, through December 31, 2011, for
874recovery of costs to produce or purchase up to a total of 300
875megawatts of renewable energy statewide and an additional 15
876megawatts of rooftop or pole-mounted solar energy applications.
877     2.  Beginning January 1, 2012, through December 31, 2012,
878for recovery of costs to produce or purchase up to an additional
879200 megawatts of renewable energy statewide and an additional 10
880megawatts of rooftop or pole-mounted solar energy applications.
881     3.  Beginning January 1, 2013, through December 31, 2013,
882for recovery of costs to produce or purchase up to an additional
883200 megawatts of renewable energy statewide and an additional 10
884megawatts of rooftop or pole-mounted solar energy applications.
885     (b)  In addition to the full cost recovery for such
886renewable energy projects, a return on equity of at least 50
887basis points above the top of the range of the provider's last
888authorized rate of return on equity approved by the commission
889for energy projects shall be approved and provided for such
890renewable energy projects if a majority value of the energy-
891producing components incorporated into such projects are
892manufactured or assembled in the state.
893     (c)  A provider has sole discretion to determine the type
894and technology of the renewable energy resource that it intends
895to use. A provider also has sole discretion to determine whether
896to construct new renewable energy generating facilities, convert
897existing fossil fuel generating facilities to renewable energy
898generating facilities, or contract for the purchase of renewable
899energy from third-party generating facilities in the state.
900     (d)  For the production or purchase of renewable energy
901under this subsection, a provider may recover costs up to and in
902excess of its full avoided cost, as defined in s. 366.051 and
903approved by the commission, if the recovery of costs in excess
904of the provider's full avoided cost does not at any time exceed
9052 percent of the provider's total revenues from the retail sale
906of electricity for calendar year 2009. For purposes of cost
907recovery under this subsection, costs shall be computed using a
908methodology that, for a renewable energy generating facility,
909averages the revenue requirements of the facility over its
910economic life and, for a renewable energy purchase, averages the
911revenue requirements of the purchase over the life of the
912contract.
913     (e)  Cost recovery under this subsection is limited to new
914construction or conversion projects for which construction is
915commenced on or after July 1, 2010, and to purchases made on or
916after that date. All renewable energy projects for which costs
917are approved by the commission for recovery through the
918environmental cost recovery clause before July 1, 2010, are not
919subject to or included in the calculation of the cost cap.
920     (f)  The costs incurred by a provider to produce or
921purchase renewable energy under this subsection are deemed to be
922prudent for purposes of cost recovery if the provider uses
923reasonable and customary industry practices in the design,
924procurement, and construction of the project in a cost-effective
925manner for the type of renewable energy resource and appropriate
926to the location of the facility.
927     (g)  Subject to the cost cap in paragraph (d), the
928commission shall allow a provider to recover the costs
929associated with the production or purchase of renewable energy
930under this subsection as follows:
931     1.  For new renewable energy generating facilities, the
932commission shall allow recovery of reasonable and prudent costs,
933including, but not limited to, the siting, licensing,
934engineering, design, permitting, construction, operation, and
935maintenance of such facilities, including any applicable taxes
936and a return based on the provider's last authorized rate of
937return.
938     2.  For conversion of existing fossil fuel generating
939facilities to renewable energy generating facilities, the
940commission shall allow recovery of reasonable and prudent
941conversion costs, including the costs of retirement of the
942fossil fuel plant that exceed any amounts accrued by the
943provider for such purposes through rates previously set by the
944commission.
945     3.  For purchase of renewable energy from third-party
946generating facilities in the state, the commission shall allow
947recovery of reasonable and prudent costs associated with the
948purchase.
949     (h)  In a proceeding to recover costs incurred under this
950subsection, a provider must provide the commission all cost
951information, hourly energy production information, and other
952information deemed relevant by the commission with respect to
953each project.
954     (i)  When a provider purchases renewable energy under this
955subsection at a cost in excess of its full avoided cost, the
956seller must surrender to the provider all renewable attributes
957of the renewable energy purchased.
958     (j)  Revenues derived from any renewable energy credit,
959carbon credit, or other mechanism that attributes value to the
960production of renewable energy, either existing or hereafter
961devised, received by a provider by virtue of the production or
962purchase of renewable energy for which cost recovery is approved
963under this subsection shall be shared with the provider's
964ratepayers such that the ratepayers are credited at least 75
965percent of such revenues.
966     (k)  Section 403.519 does not apply to a renewable energy
967generating facility constructed or converted from an existing
968fossil fuel generating facility under this subsection, and the
969commission is not required to submit a report for such a project
970under s. 403.507(4)(a).
971     (3)  Each provider shall, in its 10-year site plan
972submitted to the commission pursuant to s. 186.801, provide the
973following information:
974     (a)  The amount of renewable energy resources the provider
975produces or purchases.
976     (b)  The amount of renewable energy resources the provider
977plans to produce or purchase over the 10-year planning horizon
978and the means by which such production or purchases will be
979achieved.
980     (c)  A statement indicating how the production and purchase
981of renewable energy resources impact the provider's present and
982future capacity and energy needs.
983     (4)(a)  A developer of solar energy generation may locate a
984solar energy generation facility that has a gross power rating
985of 2 megawatts or less on the premises of a host consumer and
986supply electricity exclusively for sale to the host consumer for
987consumption only on the premises or contiguous property owned or
988leased by the host consumer, regardless of interruptions in
989contiguity caused by easements, public thoroughfares,
990transportation rights-of-way, or utility rights-of-way, if such
991premises or contiguous property does not include a multifamily
992residential building.
993     (b)  The commission shall adopt rules to implement this
994subsection. In adopting such rules, the commission shall
995establish, at a minimum:
996     1.  Requirements related to interconnection and metering.
997     2.  A mechanism for setting rates for any service provided
998to the consumer by the utility if such service is required by
999the consumer, which rates shall ensure that the utility's
1000general body of ratepayers does not subsidize any redundant
1001utility generating capacity necessary to serve the consumer.
1002     3.  Requirements for notice to the commission of the size
1003and location of each renewable energy generation facility
1004planned under this subsection, the identity and historical and
1005projected load characteristics of each host consumer, and any
1006other information deemed necessary by the commission to satisfy
1007its obligations under s. 364.04(5).
1008     (c)  Beginning January 1, 2011, and at least once every 6
1009months thereafter, the commission shall submit a report to the
1010Legislature of activity under this subsection, which shall
1011address the impacts of such activity on the electric power grid
1012of the state, individual utility systems, and each utility's
1013general body of ratepayers, and shall include recommendations
1014concerning implementation of this program.
1015     (5)  Each municipal electric utility and rural electric
1016cooperative shall develop standards for the promotion,
1017encouragement, and expansion of the use of renewable energy
1018resources and energy conservation and efficiency measures. On or
1019before April 1, 2009, and annually thereafter, each municipal
1020electric utility and electric cooperative shall submit to the
1021commission a report that identifies such standards.
1022     (6)  Nothing in This section and any action taken under
1023this section may not shall be construed to impede or impair the
1024terms and conditions of, or serve as a basis for renegotiating
1025or repricing, an existing contract contracts.
1026     (7)  The commission may adopt rules to administer and
1027implement the provisions of this section.
1028     Section 10.  Subsection (14) of section 403.503, Florida
1029Statutes, is amended to read:
1030     403.503  Definitions relating to Florida Electrical Power
1031Plant Siting Act.-As used in this act:
1032     (14)  "Electrical power plant" means, for the purpose of
1033certification, any steam or solar electrical generating facility
1034using any process or fuel, including nuclear materials, except
1035that this term does not include any steam or solar electrical
1036generating facility of less than 75 megawatts in capacity or any
1037solar electrical generating facility of any sized capacity
1038unless the applicant for such a facility elects to apply for
1039certification under this act. This term also includes the site;
1040all associated facilities that will be owned by the applicant
1041that are physically connected to the site; all associated
1042facilities that are indirectly connected to the site by other
1043proposed associated facilities that will be owned by the
1044applicant; and associated transmission lines that will be owned
1045by the applicant which connect the electrical power plant to an
1046existing transmission network or rights-of-way to which the
1047applicant intends to connect. At the applicant's option, this
1048term may include any offsite associated facilities that will not
1049be owned by the applicant; offsite associated facilities that
1050are owned by the applicant but that are not directly connected
1051to the site; any proposed terminal or intermediate substations
1052or substation expansions connected to the associated
1053transmission line; or new transmission lines, upgrades, or
1054improvements of an existing transmission line on any portion of
1055the applicant's electrical transmission system necessary to
1056support the generation injected into the system from the
1057proposed electrical power plant.
1058     Section 11.  Section 288.9602, Florida Statutes, is amended
1059to read:
1060     288.9602  Findings and declarations of necessity.-The
1061Legislature finds and declares that:
1062     (1)  There is a need to enhance economic activity in the
1063cities and counties of the state by attracting manufacturing,
1064development, redevelopment of brownfield areas, business
1065enterprise management, and other activities conducive to
1066economic promotion in order to provide a stronger, more
1067balanced, and stable economy in the cities and counties of the
1068state.
1069     (2)  A significant portion of businesses located in the
1070cities and counties of the state or desiring to locate in the
1071cities and counties of the state encounter difficulty in
1072obtaining financing on terms competitive with those available to
1073businesses located in other states and nations or are unable to
1074obtain such financing at all.
1075     (3)  The difficulty in obtaining such financing impairs the
1076expansion of economic activity and the creation of jobs and
1077income in communities throughout the state.
1078     (4)  The businesses most often affected by these financing
1079difficulties are small businesses critical to the economic
1080development of the state cities and counties of Florida.
1081     (5)  The economic well-being of the people in, and the
1082commercial and industrial resources of, the cities and counties
1083of the state would be enhanced by the provision of financing to
1084businesses on terms competitive with those available in the most
1085developed financial markets worldwide.
1086     (6)  In order to improve the prosperity and welfare of the
1087cities and counties of this state and its inhabitants, to
1088improve and promote the financing of projects related to the
1089economic development of the cities and counties of this state,
1090including redevelopment of brownfield areas, and to increase the
1091purchasing power and opportunities for gainful employment of
1092citizens of the cities and counties of this state, it is
1093necessary and in the public interest to facilitate the financing
1094of such projects as provided for in this act and to do so
1095without regard to the boundaries between counties,
1096municipalities, special districts, and other local governmental
1097bodies or agencies in order to more effectively and efficiently
1098serve the interests of the greatest number of people in the
1099widest area practicable.
1100     (7)  In order to promote and stimulate development and
1101advance the business prosperity and economic welfare of the
1102cities and counties of this state and its inhabitants; to
1103encourage and assist new business and industry in this state
1104through loans, investments, or other business transactions; to
1105rehabilitate and assist existing businesses; to stimulate and
1106assist in the expansion of all kinds of for-profit and not-for-
1107profit business activity; and to create maximum opportunities
1108for employment, encouragement of thrift, and improvement of the
1109standard of living of the citizens of Florida, it is necessary
1110and in the public interest to facilitate the cooperation and
1111action between organizations, public and private, in the
1112promotion, development, and conduct of all kinds of for-profit
1113and not-for-profit business activity in the state.
1114     (8)  In order to efficiently and effectively achieve the
1115purposes of this act, it is necessary and in the public interest
1116to create a special development finance authority to cooperate
1117and act in conjunction with public agencies of this state and
1118local governments of this state, through interlocal agreements
1119pursuant to the Florida Interlocal Cooperation Act of 1969, in
1120the promotion and advancement of projects related to economic
1121development, including redevelopment of brownfield areas,
1122throughout the state.
1123     (9)  The purposes to be achieved by the special development
1124finance authority through such projects and such financings of
1125business and industry in compliance with the criteria and the
1126requirements of this act are predominantly the public purposes
1127stated in this section, and such purposes implement the
1128governmental purposes under the State Constitution of providing
1129for the health, safety, and welfare of the people of the state,
1130including implementing the purpose of s. 10(c), Art. VII of the
1131State Constitution and simultaneously provide new and innovative
1132means for the investment of public trust funds in accordance
1133with s. 10(a), Art. VII of the State Constitution.
1134     Section 12.  Subsections (6), (11), and (12) of section
1135288.9603, Florida Statutes, are amended to read:
1136     288.9603  Definitions.-
1137     (6)  "Debt service" shall mean for any bonds issued by the
1138corporation or for any bonds or other form of indebtedness and
1139for which a guaranty has been issued pursuant to ss. 288.9606,
1140288.9607, and 288.9608, for any period for which such
1141determination is to be made, the aggregate amount of all
1142interest charges due or which shall become due on or with
1143respect to such bonds or indebtedness during the period for
1144which such determination is being made, plus the aggregate
1145amount of scheduled principal payments due or which shall become
1146due on or with respect to such bonds or indebtedness during the
1147period for which such determination is being made. Scheduled
1148principal payments may include only principal payments that are
1149scheduled as part of the terms of the original bond or
1150indebtedness issue and that result in the reduction of the
1151outstanding principal balance of the bonds or indebtedness.
1152     (11)  "Guaranty agreement" means an agreement by and
1153between the corporation and an applicant a public agency
1154pursuant to the provisions of s. 288.9607.
1155     (12)  "Guaranty agreement fund" means the Energy,
1156Technology, and Economic Development Revenue Bond Guaranty Fund
1157Reserve Account established by the corporation pursuant to s.
1158288.9608.
1159     Section 13.  Section 288.9604, Florida Statutes, is amended
1160to read:
1161     288.9604  Creation of the authority.-
1162     (1)  Upon a finding of necessity by a city or county of
1163this state, selected pursuant to subsection (2), There is
1164created a public body corporate and politic known as the
1165"Florida Development Finance Corporation." The corporation shall
1166be constituted as a public instrumentality of local government,
1167and the exercise by the corporation of the powers conferred by
1168this act shall be deemed and held to be the performance of an
1169essential public function. The corporation has the power to
1170function within the corporate limits of any public agency with
1171which it has entered into an interlocal agreement for any of the
1172purposes of this act.
1173     (2)  A city or county of Florida shall be selected by a
1174search committee of Enterprise Florida, Inc. This city or county
1175shall be authorized to activate the corporation. The search
1176committee shall be composed of two commercial banking
1177representatives, the Senate member of the partnership, the House
1178of Representatives member of the partnership, and a member who
1179is an industry or economic development professional.
1180     (2)(3)  Upon activation of the corporation, The Governor,
1181subject to confirmation by the Senate, shall appoint the board
1182of directors of the corporation, who shall be five in number.
1183The terms of office for the directors shall be for 4 years from
1184the date of their appointment. A vacancy occurring during a term
1185shall be filled for the unexpired term. A director shall be
1186eligible for reappointment. At least three of the directors of
1187the corporation shall be bankers who have been selected by the
1188Governor from a list of bankers who were nominated by Enterprise
1189Florida, Inc., and one of the directors shall be an economic
1190development specialist. The chairperson of the Florida Black
1191Business Investment Board shall be an ex officio member of the
1192board of the corporation.
1193     (3)(4)(a)  A director shall receive no compensation for his
1194or her services, but is entitled to the necessary expenses,
1195including travel expenses, incurred in the discharge of his or
1196her duties. Each director shall hold office until his or her
1197successor has been appointed.
1198     (b)  The powers of the corporation shall be exercised by
1199the directors thereof. A majority of the directors constitutes a
1200quorum for the purposes of conducting business and exercising
1201the powers of the corporation and for all other purposes. Action
1202may be taken by the corporation upon a vote of a majority of the
1203directors present, unless in any case the bylaws require a
1204larger number. Any person may be appointed as director if he or
1205she resides, or is engaged in business, which means owning a
1206business, practicing a profession, or performing a service for
1207compensation or serving as an officer or director of a
1208corporation or other business entity so engaged, within the
1209state.
1210     (c)  The directors of the corporation shall annually elect
1211one of their members as chair and one as vice chair. The
1212corporation may employ a president, technical experts, and such
1213other agents and employees, permanent and temporary, as it
1214requires and determine their qualifications, duties, and
1215compensation. For such legal services as it requires, the
1216corporation may employ or retain its own counsel and legal
1217staff. The corporation shall file with the governing body of
1218each public agency with which it has entered into an interlocal
1219agreement and with the Governor, the Speaker of the House of
1220Representatives, the President of the Senate, the Minority
1221Leaders of the Senate and House of Representatives, and the
1222Auditor General, on or before 90 days after the close of the
1223fiscal year of the corporation, a report of its activities for
1224the preceding fiscal year, which report shall include a complete
1225financial statement setting forth its assets, liabilities,
1226income, and operating expenses as of the end of such fiscal
1227year.
1228     (4)(5)  The board may remove a director for inefficiency,
1229neglect of duty, or misconduct in office only after a hearing
1230and only if he or she has been given a copy of the charges at
1231least 10 days before prior to such hearing and has had an
1232opportunity to be heard in person or by counsel. The removal of
1233a director shall create a vacancy on the board which shall be
1234filled pursuant to subsection (4) (3).
1235     Section 14.  Section 288.9605, Florida Statutes, is amended
1236to read:
1237     288.9605  Corporation powers.-
1238     (1)  The powers of the corporation created by s. 288.9604
1239shall include all the powers necessary or convenient to carry
1240out and effectuate the purposes and provisions of this act.
1241     (2)  The corporation is authorized and empowered to:
1242     (a)  Have perpetual succession as a body politic and
1243corporate and adopt bylaws for the regulation of its affairs and
1244the conduct of its business.
1245     (b)  Adopt an official seal and alter the same at its
1246pleasure.
1247     (c)  Maintain an office at such place or places as it may
1248designate.
1249     (d)  Sue and be sued in its own name and plead and be
1250impleaded.
1251     (e)  Enter into interlocal agreements pursuant to s.
1252163.01(7) with public agencies of this state for the exercise of
1253any power, privilege, or authority consistent with the purposes
1254of this act.
1255     (f)  Issue, from time to time, revenue bonds, notes, or
1256other evidence of indebtedness, including, but not limited to,
1257taxable bonds and bonds the interest on which is exempt from
1258federal income taxation, for the purpose of financing and
1259refinancing any capital projects that promote economic
1260development within the state, thereby benefitting the citizens
1261of the state, for applicants and exercise all powers in
1262connection with the authorization, issuance, and sale of bonds,
1263subject to the provisions of s. 288.9606.
1264     (g)  Issue bond anticipation notes in connection with the
1265authorization, issuance, and sale of such bonds, pursuant to the
1266provisions of s. 288.9606.
1267     (h)  Make and execute contracts and other instruments
1268necessary or convenient to the exercise of its powers under the
1269act.
1270     (i)  Disseminate information about itself and its
1271activities.
1272     (j)  Acquire, by purchase, lease, option, gift, grant,
1273bequest, devise, or otherwise, real property, together with any
1274improvements thereon, or personal property for its
1275administrative purposes or in furtherance of the purposes of
1276this act, together with any improvements thereon.
1277     (k)  Hold, improve, clear, or prepare for development any
1278such property.
1279     (l)  Mortgage, pledge, hypothecate, or otherwise encumber
1280or dispose of any real or personal property.
1281     (m)  Insure or provide for insurance of any real or
1282personal property or operations of the corporation or any
1283private enterprise against any risks or hazards, including the
1284power to pay premiums on any such insurance.
1285     (n)  Establish and fund a guaranty fund in furtherance of
1286the purposes of this act.
1287     (o)  Invest funds held in reserve or sinking funds or any
1288such funds not required for immediate disbursement in property
1289or securities in such manner as the board shall determine,
1290subject to the authorizing resolution on any bonds issued, and
1291to terms established in the investment agreement pursuant to ss.
1292288.9606, 288.9607, and 288.9608, and redeem such bonds as have
1293been issued pursuant to s. 288.9606 at the redemption price
1294established therein or purchase such bonds at less than
1295redemption price, all such bonds so redeemed or purchased to be
1296canceled.
1297     (p)  Borrow money and apply for and accept advances, loans,
1298grants, contributions, and any other form of financial
1299assistance from the Federal Government or the state, county, or
1300other public agency body or from any sources, public or private,
1301for the purposes of this act and give such security as may be
1302required and enter into and carry out contracts or agreements in
1303connection therewith; and include in any contract for financial
1304assistance with the Federal Government or the state, county, or
1305other public agency for, or with respect to, any purposes under
1306this act and related activities such conditions imposed pursuant
1307to federal laws as the county or municipality or other public
1308agency deems reasonable and appropriate which are not
1309inconsistent with the provisions of this act.
1310     (q)  Make or have all surveys and plans necessary for the
1311carrying out of the purposes of this act, contract with any
1312person, public or private, in making and carrying out such
1313plans, and adopt, approve, modify, and amend such plans.
1314     (r)  Develop, test, and report methods and techniques and
1315carry out demonstrations and other activities for the promotion
1316of any of the purposes of this act.
1317     (s)  Apply for, accept, and utilize grants from the Federal
1318Government or the state, county, or other public agency
1319available for any of the purposes of this act.
1320     (t)  Make expenditures necessary to carry out the purposes
1321of this act.
1322     (u)  Exercise all or any part or combination of powers
1323granted in this act.
1324     (v)  Enter into investment agreements with the Florida
1325Black Business Investment Board concerning the issuance of bonds
1326and other forms of indebtedness and capital for the purposes of
1327ss. 288.707-288.714.
1328     (w)  Determine the situations and circumstances for
1329participation in partnerships by agreement with local
1330governments, financial institutions, and others associated with
1331the redevelopment of brownfield areas pursuant to the
1332Brownfields Redevelopment Act for a limited state guaranty of
1333revenue bonds, loan guarantees, or loan loss reserves.
1334     Section 15.  Subsections (3) and (5) of section 288.9606,
1335Florida Statutes, are amended, and subsection (7) is added to
1336that section, to read:
1337     288.9606  Issue of revenue bonds.-
1338     (3)  Bonds issued under this section shall be authorized by
1339a public agency of this state pursuant to the terms of an
1340interlocal agreement, unless such bonds are issued pursuant to
1341subsection (7); may be issued in one or more series; and shall
1342bear such date or dates, be payable upon demand or mature at
1343such time or times, bear interest rate or rates, be in such
1344denomination or denominations, be in such form either with or
1345without coupon or registered, carry such conversion or
1346registration privileges, have such rank or priority, be executed
1347in such manner, be payable in such medium of payments at such
1348place or places, be subject to such terms of redemption, with or
1349without premium, be secured in such manner, and have such other
1350characteristics as may be provided by the corporation interlocal
1351agreement issued pursuant thereto. Bonds issued under this
1352section may be sold in such manner, either at public or private
1353sale, and for such price as the corporation may determine will
1354effectuate the purpose of this act.
1355     (5)  In any suit, action, or proceeding involving the
1356validity or enforceability of any bond issued under this act, or
1357the security therefor, any such bond reciting in substance that
1358it has been issued by the corporation in connection with any
1359purpose of the act shall be conclusively deemed to have been
1360issued for such purpose, and such purpose shall be conclusively
1361deemed to have been carried out in accordance with the act. The
1362complaint in any action to validate such bonds shall be filed
1363only in the Circuit Court for Leon County. The notice required
1364to be published by s. 75.06 shall be published only in Leon
1365County, and the complaint and order of the circuit court shall
1366be served only on the State Attorney of the Second Judicial
1367Circuit and on the state attorney of each circuit in each county
1368where the public agencies which were initially a party to the
1369interlocal agreement are located. Notice of such proceedings
1370shall be published in the manner and the time required by s.
137175.06, in Leon County and in each county where the public
1372agencies which were initially a party to the interlocal
1373agreement are located. Obligations of the corporation pursuant
1374to a loan agreement as described in this subsection may be
1375validated as provided in chapter 75. The validation of at least
1376the first bonds approved by the corporation shall be appealed to
1377the Florida Supreme Court. The complaint in the validation
1378proceeding shall specifically address the constitutionality of
1379using the investment of the earnings accrued and collected upon
1380the investment of the minimum balance funds required to be
1381maintained in the State Transportation Trust Fund to guarantee
1382such bonds. If such proceeding results in an adverse ruling and
1383such bonds and guaranty are found to be unconstitutional,
1384invalid, or unenforceable, then the corporation shall no longer
1385be authorized to use the investment of the earnings accrued and
1386collected upon the investment of the minimum balance of the
1387State Transportation Trust Fund to guarantee any bonds.
1388     (7)  Notwithstanding any provision of this section, the
1389corporation in its corporate capacity may, without authorization
1390from a public agency under s. 163.01(7), issue revenue bonds or
1391other evidence of indebtedness under this section to:
1392     (a)  Finance the undertaking of any project within the
1393state that promotes renewable energy as defined in s. 377.803 or
1394s. 366.91;
1395     (b)  Finance the undertaking of any project within the
1396state that is a project contemplated or allowed under s. 406 of
1397the American Recovery and Reinvestment Act of 2009; or
1398     (c)  If permitted by federal law, finance qualifying
1399improvement projects within the state under s. 163.08.
1400     Section 16.  Section 288.9607, Florida Statutes, is amended
1401to read:
1402     288.9607  Guaranty of bond issues.-
1403     (1)  The corporation may is hereby authorized to approve or
1404deny, by a majority vote of the membership of the directors, a
1405guaranty of debt service payments for bonds or other
1406indebtedness used to finance any capital project that promotes
1407economic development in the state, including, but not limited
1408to, those capital projects for which revenue bonds are the
1409guaranty of any revenue bonds issued under pursuant to this act,
1410if any such guaranty does not exceed 5 percent of the total
1411aggregate principal amount of bonds or other indebtedness
1412relating to any one capital project. The guaranty may also be of
1413the obligations of the corporation with respect to any letter of
1414credit, bond insurance, or other form of credit enhancement
1415provided by any person with respect to any revenue bonds issued
1416by the corporation pursuant to this act.
1417     (2)  Any applicant for financing from the corporation,
1418requesting a guaranty of the bonds issued by the corporation
1419under this act must submit a guaranty application, in a form
1420acceptable to the corporation, together with supporting
1421documentation to the corporation as provided in this section.
1422     (3)  All applicants which have entered into a guaranty
1423agreement with the corporation shall pay a guaranty premium on
1424such terms and at such rates as the corporation shall determine
1425before prior to the issuance of the guaranty bonds. The
1426corporation may adopt such guaranty premium structures as it
1427deems appropriate, including, without limitation, guaranty
1428premiums which are payable one time upon the issuance of the
1429guaranty bonds or annual premiums payable upon the outstanding
1430principal balance of bonds or other indebtedness that is
1431guaranteed from time to time. The premium payment may be
1432collected by the corporation from any the lessee of the project
1433involved, from the applicant, or from any other payee of any the
1434loan agreement involved.
1435     (4)  All applications for a guaranty must acknowledge that
1436as a condition to the issuance of the guaranty, the corporation
1437may require that the financing must be secured by a mortgage or
1438security interest on the property acquired which will have such
1439priority over other liens on such property as may be required by
1440the corporation, and that the financing must be guaranteed by
1441such person or persons with such ownership interest in the
1442applicant as may be required by the corporation.
1443     (5)  Personal financial records, trade secrets, or
1444proprietary information of applicants delivered to or obtained
1445by the corporation shall be confidential and exempt from the
1446provisions of s. 119.07(1).
1447     (6)  If the application for a guaranty is approved by the
1448corporation, the corporation and the applicant shall enter into
1449a guaranty agreement. In accordance with the provisions of the
1450guaranty agreement, the corporation guarantees to use the funds
1451on deposit in its Energy, Technology, and Economic Development
1452Guaranty Fund Revenue Bond Guaranty Reserve Account to meet debt
1453service amortization payments on the bonds or indebtedness as
1454they become due, in the event and to the extent that the
1455applicant is unable to meet such payments in accordance with the
1456terms of the bond indenture when called to do so by the trustee
1457of the bondholders, or to make similar payments to reimburse any
1458person which has provided credit enhancement for the bonds and
1459which has advanced funds to meet such debt service amortization
1460payments as they become due, if such guaranty of the corporation
1461is limited to 5 percent of the total aggregate principal amount
1462of bonds or other indebtedness relating to any one capital
1463project. If the applicant defaults on debt service bond
1464amortization payments, the corporation may use funds on deposit
1465in the Energy, Technology, and Economic Development Guaranty
1466Fund Revenue Bond Guaranty Reserve Account to pay insurance,
1467maintenance, and other costs which may be required for the
1468preservation of any capital project or other collateral security
1469for any bond or indebtedness issued to finance a capital project
1470for which debt service payments are guaranteed by the
1471corporation issued by the corporation, or to otherwise protect
1472the reserve account from loss, or to minimize losses to the
1473reserve account, in each case in such manner as may be deemed
1474necessary and advisable by the corporation.
1475     (7)(a)  The corporation is authorized to enter into an
1476investment agreement with the Department of Transportation and
1477the State Board of Administration concerning the investment of
1478the earnings accrued and collected upon the investment of the
1479minimum balance of funds required to be maintained in the State
1480Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1481investment shall be limited as follows:
1482     1.  Not more than $4 million of the investment earnings
1483earned on the investment of the minimum balance of the State
1484Transportation Trust Fund in a fiscal year shall be at risk at
1485any time on one or more bonds or series of bonds issued by the
1486corporation.
1487     2.  The investment earnings shall not be used to guarantee
1488any bonds issued after June 30, 1998, and in no event shall the
1489investment earnings be used to guarantee any bond issued for a
1490maturity longer than 15 years.
1491     3.  The corporation shall pay a reasonable fee, set by the
1492State Board of Administration, in return for the investment of
1493such funds. The fee shall not be less than the comparable rate
1494for similar investments in terms of size and risk.
1495     4.  The proceeds of bonds, or portions thereof, issued by
1496the corporation for which a guaranty has been or will be issued
1497pursuant to s. 288.9606, s. 288.9608, or this section used to
1498make loans to any one person, including any related interests,
1499as defined in s. 658.48, of such person, shall not exceed 20
1500percent of the principal of all such outstanding bonds of the
1501corporation issued prior to the first composite bond issue of
1502the corporation, or December 31, 1995, whichever comes first,
1503and shall not exceed 15 percent of the principal of all such
1504outstanding bonds of the corporation issued thereafter, in each
1505case determined as of the date of issuance of the bonds for
1506which such determination is being made and taking into account
1507the principal amount of such bonds to be issued. The provisions
1508of this subparagraph shall not apply when the total amount of
1509all such outstanding bonds issued by the corporation is less
1510than $10 million. For the purpose of calculating the limits
1511imposed by the provisions of this subparagraph, the first $10
1512million of bonds issued by the corporation shall be taken into
1513account.
1514     5.  The corporation shall establish a debt service reserve
1515account which contains not less than 6 months' debt service
1516reserves from the proceeds of the sale of any bonds, or portions
1517thereof, guaranteed by the corporation.
1518     6.  The corporation shall establish an account known as the
1519Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1520corporation shall deposit a sum of money or other cash
1521equivalents into this fund and maintain a balance of money or
1522cash equivalents in this fund, from sources other than the
1523investment of earnings accrued and collected upon the investment
1524of the minimum balance of funds required to be maintained in the
1525State Transportation Trust Fund, not less than a sum equal to 1
1526year of maximum debt service on all outstanding bonds, or
1527portions thereof, of the corporation for which a guaranty has
1528been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
1529the event the corporation fails to maintain the balance required
1530pursuant to this subparagraph for any reason other than a
1531default on a bond issue of the corporation guaranteed pursuant
1532to this section or because of the use by the corporation of any
1533such funds to pay insurance, maintenance, or other costs which
1534may be required for the preservation of any project or other
1535collateral security for any bond issued by the corporation, or
1536to otherwise protect the Revenue Bond Guaranty Reserve Account
1537from loss while the applicant is in default on amortization
1538payments, or to minimize losses to the reserve account in each
1539case in such manner as may be deemed necessary or advisable by
1540the corporation, the corporation shall immediately notify the
1541Department of Transportation of such deficiency. Any
1542supplemental funding authorized by an investment agreement
1543entered into with the Department of Transportation and the State
1544Board of Administration concerning the use of investment
1545earnings of the minimum balance of funds is void unless such
1546deficiency of funds is cured by the corporation within 90 days
1547after the corporation has notified the Department of
1548Transportation of such deficiency.
1549     (b)  Unless specifically prohibited in the General
1550Appropriations Act, the earnings accrued and collected upon the
1551investment of the minimum balance of funds required to be
1552maintained in the State Transportation Trust Fund may continue
1553to be used pursuant to paragraph (a).
1554     (c)  The guaranty is shall not be a general obligation of
1555the corporation or of the state, but is shall be a special
1556obligation, which constitutes the investment of a public trust
1557fund. In no event shall the guaranty constitute an indebtedness
1558of the corporation, the state of Florida, or any political
1559subdivision thereof within the meaning of any constitutional or
1560statutory limitation. Each guaranty agreement shall have plainly
1561stated on the face thereof that it has been entered into under
1562the provisions of this act and that it does not constitute an
1563indebtedness of the corporation, the state, or any political
1564subdivision thereof within any constitutional or statutory
1565limitation, and that neither the full faith and credit of the
1566state of Florida nor any of its revenues is pledged to meet any
1567of the obligations of the corporation under such guaranty
1568agreement. Each such agreement shall state that the obligation
1569of the corporation under the guaranty shall be limited to the
1570funds available in the Energy, Technology, and Economic
1571Development Guaranty Fund Revenue Bond Guaranty Reserve Account
1572as authorized by this section.
1573
1574The corporation shall include, as part of the annual report
1575prepared pursuant to s. 288.9610, a detailed report concerning
1576the use of guaranteed bond proceeds for loans guaranteed or
1577issued pursuant to any agreement with the Florida Black Business
1578Investment Board, including the percentage of such loans
1579guaranteed or issued and the total volume of such loans
1580guaranteed or issued.
1581     (8)  In the event the corporation does not approve the
1582application for a guaranty, the applicant shall be notified in
1583writing of the corporation's determination that the application
1584not be approved.
1585     (9)  The membership of the corporation is authorized and
1586directed to conduct such investigation as it may deem necessary
1587for promulgation of regulations to govern the operation of the
1588guaranty program authorized by this section. The regulations may
1589include such other additional provisions, restrictions, and
1590conditions as the corporation, after its investigation referred
1591to in this subsection, shall determine to be proper to achieve
1592the most effective utilization of the guaranty program. This may
1593include, without limitation, a detailing of the remedies that
1594must be exhausted by the bondholders, or a trustee acting on
1595their behalf, or other credit provided before prior to calling
1596upon the corporation to perform under its guaranty agreement and
1597the subrogation of other rights of the corporation with
1598reference to the capital project and its operation or the
1599financing in the event the corporation makes payment pursuant to
1600the applicable guaranty agreement. The regulations promulgated
1601by the corporation to govern the operation of the guaranty
1602program may shall contain specific provisions with respect to
1603the rights of the corporation to enter, take over, and manage
1604all financed properties upon default. These regulations shall be
1605submitted by set forth the respective rights of the corporation
1606to the Florida Energy and Climate Commission for approval and
1607the bondholders in regard thereto.
1608     (10)  The guaranty program described in this section may be
1609used by the corporation in conjunction with any federal guaranty
1610programs described in s. 406 of the American Recovery and
1611Reinvestment Act of 2009. All policies, procedures, and
1612regulations of the guaranty program adopted by the corporation,
1613to the extent such guaranty program of the corporation is used
1614in conjunction with a federal guaranty program described in s.
1615406 of the American Recovery and Reinvestment Act of 2009, must
1616be consistent with s. 406 of the American Recovery and
1617Reinvestment Act of 2009.
1618     Section 17.  Section 288.9608, Florida Statutes, is amended
1619to read:
1620     288.9608  Creation and funding of the Energy, Technology,
1621and Economic Development Guaranty Fund guaranty account.-
1622     (1)  The corporation shall establish a debt service reserve
1623account which contains not less than 6 months' debt service
1624reserves from the proceeds of the sale of any bonds guaranteed
1625by the corporation. Funds in such debt service reserve account
1626shall be used prior to funds in the Revenue Bond Guaranty
1627Reserve Account established in subsection (2). The corporation
1628shall make best efforts to liquidate collateralized property and
1629draw upon personal guarantees, and shall utilize the Revenue
1630Bond Guaranty Reserve Account prior to use of supplemental
1631funding for the Guaranty Reserve Account under the provisions of
1632subsection (3).
1633     (2)(a)  The corporation shall establish an account known as
1634the Energy, Technology, and Economic Development Guaranty Fund
1635Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1636corporation may shall deposit moneys a sum of money or other
1637cash equivalents into the this fund and maintain a balance in
1638the this fund, from general revenue funds of the state as are
1639authorized for that purpose or any other designated funding
1640sources not inconsistent with state law sources other than the
1641State Transportation Trust Fund, not less than a sum equal to 1
1642year of maximum debt service on all outstanding bonds, or
1643portions thereof, of the corporation for which a guaranty has
1644been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
1645     (2)(b)  If the corporation determines that the moneys in
1646the guaranty agreement fund are not sufficient to meet the
1647obligations of the guaranty agreement fund, the corporation is
1648authorized to use the necessary amount of any available moneys
1649that it may have which are not needed for, then or in the
1650foreseeable future, or committed to other authorized functions
1651and purposes of the corporation. Any such moneys so used may be
1652reimbursed out of the guaranty agreement fund if and when there
1653are moneys therein available for the purpose.
1654     (3)(c)  The determination of when additional moneys will be
1655needed for the guaranty agreement fund, the amounts that will be
1656needed, and the availability or unavailability of other moneys
1657shall be made solely by the corporation in the exercise of its
1658discretion. However, supplemental funding for the Guaranty Fund
1659as described in subsection (3) shall be made in accordance with
1660the investment agreement of the corporation and the Department
1661of Transportation and the State Board of Administration.
1662     (3)(a)  If the corporation determines that the funds in the
1663Guaranty Fund will not be sufficient to meet the present or
1664reasonably projected obligations of the Guaranty Fund, due to a
1665default on a loan made by the corporation from the proceeds of a
1666bond issued by the corporation which is guaranteed pursuant to
1667s. 288.9607(7), no later than 90 days before amortization
1668payments are due on such bonds, the corporation shall notify the
1669Secretary of Transportation and the State Board of
1670Administration of the amount of funds required to meet, as and
1671when due, all amortization payments for which the Guaranty Fund
1672is obligated. The Secretary of Transportation shall immediately
1673notify the Speaker of the House of Representatives, the
1674President of the Senate, and the chairs of the Senate and House
1675Committees on Appropriations of the amount of funds required,
1676and the projected impact on each affected year of the adopted
1677work program of the Department of Transportation.
1678     (b)  Within 30 days of the receipt of notification from the
1679corporation, the Department of Transportation shall submit a
1680budget amendment request to the Executive Office of the Governor
1681pursuant to chapter 216, to increase budget authority to carry
1682out the purposes of this section. Upon approval of said
1683amendment, the department shall proceed to amend the adopted
1684work program, if necessary, in accordance with the amendment.
1685Within 60 days of the receipt of notification, and subject to
1686approval of the budget authority, the Secretary of
1687Transportation shall transfer, subject to the amount available
1688from the source described in paragraph (c), the amount of funds
1689requested by the corporation required to meet, as and when due,
1690all amortization payments for which the Guaranty Fund is
1691obligated. Any moneys so transferred shall be reimbursed to the
1692Department of Transportation, with interest at the rate earned
1693on investment by the State Treasury, from the funds available in
1694the Guaranty Fund or as otherwise available to the corporation.
1695     (c)  Pursuant to s. 288.9607(7), the Secretary of
1696Transportation and the State Board of Administration may make
1697available for transfer to the Guaranty Fund, earnings accrued
1698and collected upon the investment of the minimum balance of
1699funds required to be maintained in the State Transportation
1700Trust Fund. However, the earnings accrued and collected upon the
1701investment of the minimum balance of funds required to be
1702maintained in the State Transportation Trust Fund which shall be
1703subject to transfer shall be limited to those earnings accrued
1704and collected on the investment of the minimum balance of funds
1705required to be maintained in the State Transportation Trust Fund
1706for the fiscal year in which the notification is received by the
1707secretary and fiscal years thereafter.
1708     (4)  If the corporation receives supplemental funding for
1709the Guaranty Fund under the provisions of this section, then any
1710proceeds received by the corporation with respect to a loan in
1711default, including proceeds from the sale of collateral for such
1712loan, enforcement of personal guarantees or other pledges to the
1713corporation to secure such loan, shall first be applied to the
1714obligation of the corporation to repay the Department of
1715Transportation pursuant to this section. Until such repayment is
1716complete, no new bonds may be guaranteed pursuant to this
1717section.
1718     (5)  Prior to the use of the guaranty provided in this
1719section, and on an annual basis, the corporation must certify in
1720writing to the State Board of Administration and the Secretary
1721of Transportation that it has fully implemented the requirements
1722of this section and s. 288.9607 and the regulations of the
1723corporation.
1724     Section 18.  Section 288.9609, Florida Statutes, is amended
1725to read:
1726     288.9609  Bonds as legal investments.-All banks, trust
1727companies, bankers, savings banks and institutions, building and
1728loan associations, savings and loan associations, investment
1729companies, and other persons carrying on a banking and
1730investment business; all insurance companies, insurance
1731associations, and other persons carrying on an insurance
1732business; and all executors, administrators, curators, trustees,
1733and other fiduciaries may legally invest any sinking funds,
1734moneys, or other funds belonging to them or within their control
1735in any bonds or other obligations issued by the corporation
1736pursuant to an interlocal agreement with a public agency of this
1737state. Such bonds and obligations shall be authorized security
1738for all public deposits. It is the purpose of this section to
1739authorize all persons, political subdivisions, and officers,
1740public and private, to use any funds owned or controlled by them
1741for the purchase of any such bonds or other obligations. Nothing
1742contained in this section with regard to legal investments shall
1743be construed as relieving any person of any duty of exercising
1744reasonable care in selecting securities.
1745     Section 19.  Section 288.9610, Florida Statutes, is amended
1746to read:
1747     288.9610  Annual reports of Florida Development Finance
1748Corporation.-By December 1 of each year, the Florida Development
1749Finance Corporation shall submit to the Governor, the President
1750of the Senate, the Speaker of the House of Representatives, the
1751Senate Minority Leader, and the House Minority Leader, and the
1752city or county activating the Florida Development Finance
1753Corporation a complete and detailed report setting forth:
1754     (1)  The evaluation required in s. 11.45(3)(j).
1755     (2)  The operations and accomplishments of the Florida
1756Development Finance Corporation, including the number of
1757businesses assisted by the corporation.
1758     (3)  Its assets and liabilities at the end of its most
1759recent fiscal year, including a description of all of its
1760outstanding revenue bonds.
1761     Section 20.  Subsection (4) of section 206.46, Florida
1762Statutes, is amended to read:
1763     206.46  State Transportation Trust Fund.-
1764     (4)  The department may authorize the investment of the
1765earnings accrued and collected upon the investment of the
1766minimum balance of funds required to be maintained in the State
1767Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1768investment shall be limited as provided in s. 288.9607(7).
1769     Section 21.  Subsection (14) of section 215.47, Florida
1770Statutes, is amended to read:
1771     215.47  Investments; authorized securities; loan of
1772securities.-Subject to the limitations and conditions of the
1773State Constitution or of the trust agreement relating to a trust
1774fund, moneys available for investments under ss. 215.44-215.53
1775may be invested as follows:
1776     (14)  The State Board of Administration, consistent with
1777sound investment policy, may invest the earnings accrued and
1778collected upon the investment of the minimum balance of funds
1779required to be maintained in the State Transportation Trust Fund
1780pursuant to s. 339.135(6)(b). Such investment shall be limited
1781as provided in s. 288.9607(7).
1782     Section 22.  Subsection (3) of section 339.08, Florida
1783Statutes, is amended to read:
1784     339.08  Use of moneys in State Transportation Trust Fund.-
1785     (3)  The department may authorize the investment of the
1786earnings accrued and collected upon the investment of the
1787minimum balance of funds required to be maintained in the State
1788Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1789investment shall be limited as provided in s. 288.9607(7).
1790     Section 23.  Paragraph (f) of subsection (7) of section
1791339.135, Florida Statutes, is amended to read:
1792     339.135  Work program; legislative budget request;
1793definitions; preparation, adoption, execution, and amendment.-
1794     (7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.-
1795     (f)  The department may authorize the investment of the
1796earnings accrued and collected upon the investment of the
1797minimum balance of funds required to be maintained in the State
1798Transportation Trust Fund pursuant to paragraph (b). Such
1799investment shall be limited as provided in s. 288.9607(7).
1800     Section 24.  If any provision of this act or the
1801application thereof to any person or circumstance is held
1802invalid, the invalidity does not affect other provisions or
1803applications of the act that may be given effect without the
1804invalid provision or application, and to this end the provisions
1805of this act are declared to be severable.
1806     Section 25.  This act shall take effect July 1, 2010.


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