December 04, 2020
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CS/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;
6creating s. 366.90, F.S.; providing legislative intent
7relating to renewable energy production of electricity;
8amending s. 366.91, F.S.; deleting legislative intent
9provisions to conform to changes made by the act; revising
10the definition of the terms "biomass"; amending s. 366.92,
11F.S.; establishing the Agriculture and Clean Energy
12Economic Development Pilot Project; providing that certain
13electric energy be considered renewable energy under the
14pilot project; amending s. 366.92, F.S.; deleting the
15legislative intent provisions; deleting and revising
16definitions; deleting provisions for the renewable
17portfolio standard and renewable energy credits; providing
18a mechanism for providers to recover costs to produce or
19purchase specified amounts of renewable energy through the
20environmental cost-recovery clause under certain
21conditions; requiring providers to include specified
22information related to renewable energy development in a
23certain report; authorizing a developer of solar energy
24generation to locate a solar energy generation facility on
25the premises of a host consumer under certain
26circumstances; requiring the commission to adopt rules and
27submit reports to the Legislature; amending s. 403.44,
28F.S.; revising legislative intent for the Florida Climate
29Protection Act; prohibiting the Department of
30Environmental Protection from adopting a cap-and-trade
31regulatory program or otherwise regulating carbon
32emissions in the state; amending s. 366.8255, F.S.;
33conforming a provision to changes made by the act;
34amending s. 403.503, F.S.; revising the definition of
35"electrical power plant" for purposes of the Florida
36Electrical Power Plant Siting Act; amending ss. 288.9602
37and 288.9603, F.S.; revising legislative findings and
38declarations and definitions for purposes of the Florida
39Development Finance Corporation Act; amending s. 288.9604,
40F.S.; revising requirements for the establishment and
41organization of the Florida Development Finance
42Corporation; amending s. 288.9605, F.S.; revising the
43powers of the corporation; amending s. 288.9606, F.S.;
44revising requirements for the corporation's issuance of
45revenue bonds; amending s. 288.9607, F.S.; limiting the
46corporation's approval of guaranties for debt service for
47bonds or other indebtedness for any one capital project;
48deleting provisions for the corporation's investment of
49certain funds in the State Transportation Trust Fund;
50authorizing guarantees to be used in conjunction with
51federal guaranty programs; amending s. 288.9608, F.S.;
52creating the Energy, Technology, and Economic Development
53Guaranty Fund; providing for the deposit and use of
54certain moneys in the fund; deleting requirements for the
55corporation's debt service reserve account and Revenue
56Bond Guaranty Reserve Account; amending ss. 288.9609,
57288.9610, 206.46, 215.47, 339.08, and 339.135, F.S.;
58conforming provisions to changes made by the act;
59providing for severability; providing an effective date.
60
61Be It Enacted by the Legislature of the State of Florida:
62
63     Section 1.  Section 377.601, Florida Statutes, is amended
64to read:
65     377.601  Legislative intent.-
66     (1)  The purpose of the state's energy policy is to ensure
67an adequate and reliable supply of energy for the state in a
68manner that promotes the health and welfare of the public,
69promotes sustainable economic growth, and minimizes and
70mitigates any adverse impacts. The Legislature intends that
71governance of the state's energy policy be efficiently directed
72toward achieving this purpose. The Legislature finds that the
73state's energy security can be increased by lessening dependence
74on foreign oil; that the impacts of global climate change can be
75reduced through the reduction of greenhouse gas emissions; and
76that the implementation of alternative energy technologies can
77be a source of new jobs and employment opportunities for many
78Floridians. The Legislature further finds that the state is
79positioned at the front line against potential impacts of global
80climate change. Human and economic costs of those impacts can be
81averted by global actions and, where necessary, adapted to by a
82concerted effort to make Florida's communities more resilient
83and less vulnerable to these impacts. In focusing the
84government's policy and efforts to benefit and protect our
85state, its citizens, and its resources, the Legislature believes
86that a single government entity with a specific focus on energy
87and climate change is both desirable and advantageous. Further,
88the Legislature finds that energy infrastructure provides the
89foundation for secure and reliable access to the energy supplies
90and services on which Florida depends. Therefore, there is
91significant value to Florida consumers that comes from
92investment in Florida's energy infrastructure that increases
93system reliability, enhances energy independence and
94diversification, stabilizes energy costs, and reduces greenhouse
95gas emissions.
96     (2)  In furtherance of this purpose, the state's energy
97policy shall be implemented through effective, efficient, and
98reliable governance and shall be guided by the following goals
99in order of their priority:
100     (a)  Ensuring an affordable energy supply.
101     (b)  Ensuring adequate supply and capacity.
102     (c)  Ensuring a secure and reliable energy supply.
103     (d)  Minimizing energy cost volatility.
104     (e)  Minimizing the negative impacts of energy production
105on the state's environment, social fabric, and the public health
106and welfare.
107     (f)  Maximizing economic synergies for the state associated
108with its energy policy.
109     (g)  Reducing the net export of energy expenditures.
110     (3)  It is further the policy of the state of Florida to:
111     (a)  Develop and promote the effective use of energy in the
112state, discourage all forms of energy waste, and recognize and
113address the potential of global climate change wherever
114possible.
115     (b)  Play a leading role in developing and instituting
116energy management programs aimed at promoting energy
117conservation, energy security, and the reduction of greenhouse
118gas emissions.
119     (c)  Include energy considerations in all state, regional,
120and local planning.
121     (d)  Utilize and manage effectively energy resources used
122within state agencies.
123     (e)  Encourage local governments to include energy
124considerations in all planning and to support their work in
125promoting energy management programs.
126     (f)  Include the full participation of citizens in the
127development and implementation of energy programs.
128     (g)  Consider in its decisions the energy needs of each
129economic sector, including residential, industrial, commercial,
130agricultural, and governmental uses, and reduce those needs
131whenever possible.
132     (h)  Promote energy education and the public dissemination
133of information on energy and its environmental, economic, and
134social impact.
135     (i)  Encourage the research, development, demonstration,
136and application of alternative energy resources, particularly
137renewable energy resources.
138     (j)  Consider, in its decisionmaking, the social, economic,
139and environmental impacts of energy-related activities,
140including the whole-life-cycle impacts of any potential energy
141use choices, so that detrimental effects of these activities are
142understood and minimized.
143     (k)  Develop and maintain energy emergency preparedness
144plans to minimize the effects of an energy shortage within
145Florida.
146     Section 2.  Subsection (1) and paragraph (f) of subsection
147(2) of section 377.703, Florida Statutes, is amended to read:
148     377.703  Additional functions of the Florida Energy and
149Climate Commission.-
150     (1)  LEGISLATIVE INTENT.-Recognizing that energy supply and
151demand questions have become a major area of concern to the
152state which must be dealt with by effective and well-coordinated
153state action, it is the intent of the Legislature to promote the
154efficient, effective, and economical management of energy
155problems, centralize energy coordination responsibilities,
156pinpoint responsibility for conducting energy programs, and
157ensure the accountability of state agencies for the
158implementation of s. 377.601(2), the state energy policy. It is
159the specific intent of the Legislature that nothing in this act
160shall in any way change the powers, duties, and responsibilities
161assigned by the Florida Electrical Power Plant Siting Act, part
162II of chapter 403, or the powers, duties, and responsibilities
163of the Florida Public Service Commission.
164     (2)  FLORIDA ENERGY AND CLIMATE COMMISSION; DUTIES.-The
165commission shall perform the following functions consistent with
166the development of a state energy policy:
167     (f)  The commission shall submit an annual report to the
168Governor and the Legislature reflecting its activities and
169making recommendations of policies for improvement of the
170state's response to energy supply and demand and its effect on
171the health, safety, and welfare of the people of Florida. The
172report shall include a report from the Florida Public Service
173Commission on electricity and natural gas and information on
174energy conservation programs conducted and underway in the past
175year and shall include recommendations for energy conservation
176programs for the state, including, but not limited to, the
177following factors:
178     1.  Formulation of specific recommendations for improvement
179in the efficiency of energy utilization in governmental,
180residential, commercial, industrial, and transportation sectors.
181     2.  Collection and dissemination of information relating to
182energy conservation.
183     3.  Development and conduct of educational and training
184programs relating to energy conservation.
185     4.  An analysis of the ways in which state agencies are
186seeking to implement s. 377.601(2), the state energy policy, and
187recommendations for better fulfilling this policy.
188     Section 3.  Section 366.90, Florida Statutes, is created to
189read:
190     366.90  Renewable energy for electricity production.-In
191furtherance of the energy policy goals established in s.
192377.601, the Legislature finds that it is in the public interest
193to promote the development of renewable energy resources in the
194state, for purposes of electricity production, through the
195mechanisms established in ss. 366.91 and 366.92. The Legislature
196further finds that renewable energy resources have the potential
197to help diversify fuel types to alleviate the state's growing
198dependence on natural gas and other fossil fuels for the
199production of electricity, minimize the volatility of fuel
200costs, encourage investment within the state, improve
201environmental conditions, and make the state a leader in new and
202innovative technologies.
203     Section 4.  Subsection (1) and paragraph (a) of subsection
204(2) of section 366.91, Florida Statutes, are amended, and
205subsections (2) through (8) of that section are renumbered as
206subsections (1) through (7), respectively, to read:
207     366.91  Renewable energy.-
208     (1)  The Legislature finds that it is in the public
209interest to promote the development of renewable energy
210resources in this state. Renewable energy resources have the
211potential to help diversify fuel types to meet Florida's growing
212dependency on natural gas for electric production, minimize the
213volatility of fuel costs, encourage investment within the state,
214improve environmental conditions, and make Florida a leader in
215new and innovative technologies.
216     (1)(2)  As used in this section, the term:
217     (a)  "Biomass" means a power source that is comprised of,
218but not limited to, combustible residues or gases from forest
219products manufacturing, waste, byproducts, or products from
220agricultural and orchard crops, waste or coproducts from
221livestock and poultry operations, waste or byproducts from food
222processing, recycling byproducts, urban wood waste, municipal
223solid waste, municipal liquid waste treatment operations, and
224landfill gas.
225     Section 5.  Section 366.92, Florida Statutes, is amended to
226read:
227     366.92  Florida renewable energy policy.-
228     (1)  It is the intent of the Legislature to promote the
229development of renewable energy; protect the economic viability
230of Florida's existing renewable energy facilities; diversify the
231types of fuel used to generate electricity in Florida; lessen
232Florida's dependence on natural gas and fuel oil for the
233production of electricity; minimize the volatility of fuel
234costs; encourage investment within the state; improve
235environmental conditions; and, at the same time, minimize the
236costs of power supply to electric utilities and their customers.
237     (1)(2)  As used in this section, the term:
238     (a)  "Florida renewable energy resources" means renewable
239energy, as defined in s. 377.803, that is produced in Florida.
240     (a)(b)  "Provider" means a "utility" as defined in s.
241366.8255(1)(a).
242     (b)(c)  "Renewable energy" means renewable energy as
243defined in s. 366.91(2)(d) that is produced in the state.
244     (d)  "Renewable energy credit" or "REC" means a product
245that represents the unbundled, separable, renewable attribute of
246renewable energy produced in Florida and is equivalent to 1
247megawatt-hour of electricity generated by a source of renewable
248energy located in Florida.
249     (e)  "Renewable portfolio standard" or "RPS" means the
250minimum percentage of total annual retail electricity sales by a
251provider to consumers in Florida that shall be supplied by
252renewable energy produced in Florida.
253     (3)  The commission shall adopt rules for a renewable
254portfolio standard requiring each provider to supply renewable
255energy to its customers directly, by procuring, or through
256renewable energy credits. In developing the RPS rule, the
257commission shall consult the Department of Environmental
258Protection and the Florida Energy and Climate Commission. The
259rule shall not be implemented until ratified by the Legislature.
260The commission shall present a draft rule for legislative
261consideration by February 1, 2009.
262     (a)  In developing the rule, the commission shall evaluate
263the current and forecasted levelized cost in cents per kilowatt
264hour through 2020 and current and forecasted installed capacity
265in kilowatts for each renewable energy generation method through
2662020.
267     (b)  The commission's rule:
268     1.  Shall include methods of managing the cost of
269compliance with the renewable portfolio standard, whether
270through direct supply or procurement of renewable power or
271through the purchase of renewable energy credits. The commission
272shall have rulemaking authority for providing annual cost
273recovery and incentive-based adjustments to authorized rates of
274return on common equity to providers to incentivize renewable
275energy. Notwithstanding s. 366.91(3) and (4), upon the
276ratification of the rules developed pursuant to this subsection,
277the commission may approve projects and power sales agreements
278with renewable power producers and the sale of renewable energy
279credits needed to comply with the renewable portfolio standard.
280In the event of any conflict, this subparagraph shall supersede
281s. 366.91(3) and (4). However, nothing in this section shall
282alter the obligation of each public utility to continuously
283offer a purchase contract to producers of renewable energy.
284     2.  Shall provide for appropriate compliance measures and
285the conditions under which noncompliance shall be excused due to
286a determination by the commission that the supply of renewable
287energy or renewable energy credits was not adequate to satisfy
288the demand for such energy or that the cost of securing
289renewable energy or renewable energy credits was cost
290prohibitive.
291     3.  May provide added weight to energy provided by wind and
292solar photovoltaic over other forms of renewable energy, whether
293directly supplied or procured or indirectly obtained through the
294purchase of renewable energy credits.
295     4.  Shall determine an appropriate period of time for which
296renewable energy credits may be used for purposes of compliance
297with the renewable portfolio standard.
298     5.  Shall provide for monitoring of compliance with and
299enforcement of the requirements of this section.
300     6.  Shall ensure that energy credited toward compliance
301with the requirements of this section is not credited toward any
302other purpose.
303     7.  Shall include procedures to track and account for
304renewable energy credits, including ownership of renewable
305energy credits that are derived from a customer-owned renewable
306energy facility as a result of any action by a customer of an
307electric power supplier that is independent of a program
308sponsored by the electric power supplier.
309     8.  Shall provide for the conditions and options for the
310repeal or alteration of the rule in the event that new
311provisions of federal law supplant or conflict with the rule.
312     (c)  Beginning on April 1 of the year following final
313adoption of the commission's renewable portfolio standard rule,
314each provider shall submit a report to the commission describing
315the steps that have been taken in the previous year and the
316steps that will be taken in the future to add renewable energy
317to the provider's energy supply portfolio. The report shall
318state whether the provider was in compliance with the renewable
319portfolio standard during the previous year and how it will
320comply with the renewable portfolio standard in the upcoming
321year.
322     (2)(4)  Subject to the provisions of this subsection In
323order to demonstrate the feasibility and viability of clean
324energy systems, the commission shall provide for full cost
325recovery under the environmental cost-recovery clause of all
326reasonable and prudent costs incurred by a provider to produce
327or purchase for renewable energy for purposes of supplying
328electrical energy to its retail customers projects that are zero
329greenhouse gas emitting at the point of generation, up to a
330total of 110 megawatts statewide, and for which the provider has
331secured necessary land, zoning permits, and transmission rights
332within the state. Such costs shall be deemed reasonable and
333prudent for purposes of cost recovery so long as the provider
334has used reasonable and customary industry practices in the
335design, procurement, and construction of the project in a cost-
336effective manner appropriate to the location of the facility.
337The provider shall report to the commission as part of the cost-
338recovery proceedings the construction costs, in-service costs,
339operating and maintenance costs, hourly energy production of the
340renewable energy project, and any other information deemed
341relevant by the commission. Any provider constructing a clean
342energy facility pursuant to this section shall file for cost
343recovery no later than July 1, 2009.
344     (a)  A provider may petition the commission for recovery of
345costs to produce or purchase renewable energy, subject to the
346cost cap in paragraph (c). The provider has sole discretion to
347determine the type and technology of the renewable energy
348resource that it intends to use. However, at least 20 percent of
349the total nameplate capacity for which a provider is permitted
350to recover costs in any calendar year under this subsection must
351be produced or purchased from renewable energy sources other
352than solar energy. No later than when a provider files a
353petition for cost recovery under this subsection, the provider
354must file with the commission a schedule of planned production
355and purchases for the calendar year in which cost recovery is
356requested. If any portion of the capacity required from nonsolar
357renewable energy resources is committed but, for reasons found
358by the commission to be beyond the control of the provider, is
359not available during the calendar year for which cost recovery
360is requested, the provider may continue to recover costs to
361produce or purchase renewable energy from solar energy resources
362if the provider continues in good faith to pursue the production
363or purchase of renewable energy from nonsolar resources. The
364provider has sole discretion to determine whether to construct
365new renewable energy generating facilities, convert existing
366fossil fuel generating facilities to renewable energy generating
367facilities, or contract for the purchase of renewable energy
368from third-party generating facilities in the state.
369     (b)  In addition to the full cost recovery for such
370renewable energy projects, a return on equity of at least 50
371basis points above the top of the range of the provider's last
372authorized rate of return on equity approved by the commission
373for energy projects shall be approved and provided for such
374renewable energy projects if a majority value of the energy-
375producing components incorporated into such projects are
376manufactured or assembled in the state.
377     (c)  For the production or purchase of renewable energy
378under this subsection, a provider may recover costs up to and in
379excess of its full avoided cost, as defined in s. 366.051 and
380approved by the commission, if the recovery of costs in excess
381of the provider's full avoided cost does not exceed, as a
382percentage of the provider's total revenues from the retail sale
383of electricity for calendar year 2009, the total cumulative
384amount of 2 percent in calendar years 2010 and 2011, the total
385cumulative amount of 3 percent in calendar year 2012, and the
386total cumulative amount of 4 percent in calendar year 2013 and
387thereafter. For purposes of cost recovery under this subsection,
388costs shall be computed using a methodology that, for a
389renewable energy generating facility, averages the revenue
390requirements of the facility over its economic life and, for a
391renewable energy purchase, averages the revenue requirements of
392the purchase over the life of the contract.
393     (d)  Cost recovery under this subsection is limited to new
394construction or conversion projects for which construction is
395commenced on or after July 1, 2010, and to purchases made on or
396after that date. All renewable energy projects for which costs
397are approved by the commission for recovery through the
398environmental cost recovery clause before July 1, 2010, are not
399subject to or included in the calculation of the cost cap.
400     (e)  The costs incurred by a provider to produce or
401purchase renewable energy under this subsection are deemed to be
402prudent for purposes of cost recovery if the provider uses
403reasonable and customary industry practices in the design,
404procurement, and construction of the project in a cost-effective
405manner for the type of renewable energy resource and appropriate
406to the location of the facility.
407     (f)  Subject to the cost cap in paragraph (c), the
408commission shall allow a provider to recover the costs
409associated with the production or purchase of renewable energy
410under this subsection as follows:
411     1.  For new renewable energy generating facilities, the
412commission shall allow recovery of reasonable and prudent costs,
413including, but not limited to, the siting, licensing,
414engineering, design, permitting, construction, operation, and
415maintenance of such facilities, including any applicable taxes
416and a return based on the provider's last authorized rate of
417return.
418     2.  For conversion of existing fossil fuel generating
419facilities to renewable energy generating facilities, the
420commission shall allow recovery of reasonable and prudent
421conversion costs, including the costs of retirement of the
422fossil fuel plant that exceed any amounts accrued by the
423provider for such purposes through rates previously set by the
424commission.
425     3.  For purchase of renewable energy from third-party
426generating facilities in the state, the commission shall allow
427recovery of reasonable and prudent costs associated with the
428purchase. Any petition for approval of a purchased power
429agreement for renewable energy that is filed with the commission
430before April 2, 2010, and remains pending on July 1, 2010, shall
431be considered by the commission to have been filed in accordance
432with, and shall be subject to the provisions of, this
433subsection.
434     (g)  In a proceeding to recover costs incurred under this
435subsection, a provider must provide the commission all cost
436information, hourly energy production information, and other
437information deemed relevant by the commission with respect to
438each project.
439     (h)  When a provider purchases renewable energy under this
440subsection at a cost in excess of its full avoided cost, the
441seller must surrender to the provider all renewable attributes
442of the renewable energy purchased.
443     (i)  Revenues derived from any renewable energy credit,
444carbon credit, or other mechanism that attributes value to the
445production of renewable energy, either existing or hereafter
446devised, received by a provider by virtue of the production or
447purchase of renewable energy for which cost recovery is approved
448under this subsection shall be shared with the provider's
449ratepayers such that the ratepayers are credited at least 75
450percent of such revenues.
451     (j)  Section 403.519 does not apply to a renewable energy
452generating facility constructed or converted from an existing
453fossil fuel generating facility under this subsection, and the
454commission is not required to submit a report for such a project
455under s. 403.507(4)(a).
456     (3)  Each provider shall, in its 10-year site plan
457submitted to the commission pursuant to s. 186.801, provide the
458following information:
459     (a)  The amount of renewable energy resources the provider
460produces or purchases.
461     (b)  The amount of renewable energy resources the provider
462plans to produce or purchase over the 10-year planning horizon
463and the means by which such production or purchases will be
464achieved.
465     (c)  A statement indicating how the production and purchase
466of renewable energy resources impact the provider's present and
467future capacity and energy needs.
468     (4)(5)  Each municipal electric utility and rural electric
469cooperative shall develop standards for the promotion,
470encouragement, and expansion of the use of renewable energy
471resources and energy conservation and efficiency measures. On or
472before April 1, 2009, and annually thereafter, each municipal
473electric utility and electric cooperative shall submit to the
474commission a report that identifies such standards.
475     (5)(6)  Nothing in This section and any action taken under
476this section may not shall be construed to impede or impair the
477terms and conditions of, or serve as a basis for renegotiating
478or repricing, an existing contract contracts.
479     (6)  There is created the Agriculture and Clean Energy
480Economic Development Pilot Project. In order to promote economic
481development in the agriculture community by demonstrating the
482viability of clean energy farming, any energy purchased by a
483municipal electric utility or a rural electric cooperative from
484a new electric generating facility with a minimum system
485efficiency of 75 percent that utilizes waste heat and carbon for
486the purpose of growing agriculture in greenhouse facilities
487shall be considered renewable energy for up to 65 megawatts for
488a single pilot project.
489     (7)  The commission may adopt rules to administer and
490implement the provisions of this section.
491     Section 6.  Section 403.44, Florida Statutes, is amended to
492read:
493     403.44  Florida Climate Protection Act.-
494     (1)  The Legislature finds that it is in the best interest
495of the state to address carbon emissions through comprehensive
496national or international measures and that it is contrary to
497the economic and environmental well-being of the state to pursue
498or authorize carbon emissions regulation. The Legislature
499further finds that carbon emissions regulation by the state is
500inconsistent with the goals of developing an affordable,
501adequate, and reliable supply of energy document, to the
502greatest extent practicable, greenhouse gas emissions and to
503pursue a market-based emissions abatement program, such as cap
504and trade, to address greenhouse gas emissions reductions.
505     (2)  As used in this section, the term:
506     (a)  "Allowance" means a credit issued by the department
507through allotments or auction which represents an authorization
508to emit specific amounts of greenhouse gases, as further defined
509in department rule.
510     (b)  "Cap and trade" or "emissions trading" means an
511administrative approach used to control pollution by providing a
512limit on total allowable emissions, providing for allowances to
513emit pollutants, and providing for the transfer of the
514allowances among pollutant sources as a means of compliance with
515emission limits.
516     (c)  "Greenhouse gas" or "GHG" means carbon dioxide,
517methane, nitrous oxide, and fluorinated gases such as
518hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
519     (d)  "Leakage" means the offset of emission abatement that
520is achieved in one location subject to emission control
521regulation by increased emissions in unregulated locations.
522     (e)  "Major emitter" means an electric utility regulated
523under this chapter.
524     (3)  A major emitter shall be required to use The Climate
525Registry for purposes of emission registration and reporting.
526     (4)  The department shall establish the methodologies,
527reporting periods, and reporting systems that shall be used when
528major emitters report to The Climate Registry. The department
529may require the use of quality-assured data from continuous
530emissions monitoring systems.
531     (2)(5)  The department may not adopt rules for a cap-and-
532trade regulatory program or otherwise regulate carbon to reduce
533greenhouse gas emissions in this state from major
534developing the rules, the department shall consult with the
535Florida Energy and Climate Commission and the Florida Public
536Service Commission and may consult with the Governor's Action
537Team for Energy and Climate Change. The department shall not
538adopt rules until after January 1, 2010. The rules shall not
539become effective until ratified by the Legislature.
540     (6)  The rules of the cap-and-trade regulatory program
541shall include, but are not limited to:
542     (a)  A statewide limit or cap on the amount of greenhouse
543gases emitted by major emitters.
544     (b)  Methods, requirements, and conditions for allocating
545the cap among major emitters.
546     (c)  Methods, requirements, and conditions for emissions
547allowances and the process for issuing emissions allowances.
548     (d)  The relationship between allowances and the specific
549amounts of greenhouse gas emissions they represent.
550     (e)  The length of allowance periods and the time over
551which entities must account for emissions and surrender
552allowances equal to emissions.
553     (f)  The timeline of allowances from the initiation of the
554program through to 2050.
555     (g)  A process for the trade of allowances between major
556emitters, including a registry, tracking, or accounting system
557for such trades.
558     (h)  Cost containment mechanisms to reduce price and cost
559risks associated with the electric generation market in this
560state. Cost containment mechanisms to be considered for
561inclusion in the rules include, but are not limited to:
562     1.  Allowing major emitters to borrow allowances from
563future time periods to meet their greenhouse gas emission
564limits.
565     2.  Allowing major emitters to bank greenhouse gas emission
566reductions in the current year to be used to meet emission
567limits in future years.
568     3.  Allowing major emitters to purchase emissions offsets
569from other entities that produce verifiable reductions in
570unregulated greenhouse gas emissions or that produce verifiable
571reductions in greenhouse gas emissions through voluntary
572practices that capture and store greenhouse gases that otherwise
573would be released into the atmosphere. In considering this cost
574containment mechanism, the department shall identify sectors and
575activities outside of the capped sectors, including other state,
576federal, or international activities, and the conditions under
577which reductions there can be credited against emissions of
578capped entities in place of allowances issued by the department.
579The department shall also consider potential methods and their
580effectiveness to avoid double-incentivizing such activities.
581     4.  Providing a safety valve mechanism to ensure that the
582market prices for allowances or offsets do not surpass a
583predetermined level compatible with the affordability of
584electric utility rates and the well-being of the state's
585economy. In considering this cost containment mechanism, the
586department shall evaluate different price levels for the safety
587valve and methods to change the price level over time to reflect
588changing state, federal, and international markets, regulatory
589environments, and technological advancements.
590
591In considering cost containment mechanisms for inclusion in the
592rules, the department shall evaluate the anticipated overall
593effect of each mechanism on the abatement of greenhouse gas
594emissions and on electricity ratepayers and the benefits and
595costs of each to the state's economy, and shall also consider
596the interrelationships between the mechanisms under
597consideration.
598     (i)  A process to allow the department to exercise its
599authority to discourage leakage of GHG emissions to neighboring
600states attributable to the implementation of this program.
601     (j)  Provisions for a trial period on the trading of
602allowances before full implementation of a trading system.
603     (7)  In recommending and evaluating proposed features of
604the cap-and-trade system, the following factors shall be
605considered:
606     (a)  The overall cost-effectiveness of the cap-and-trade
607system in combination with other policies and measures in
608meeting statewide targets.
609     (b)  Minimizing the administrative burden to the state of
610implementing, monitoring, and enforcing the program.
611     (c)  Minimizing the administrative burden on entities
612covered under the cap.
613     (d)  The impacts on electricity prices for consumers.
614     (e)  The specific benefits to the state's economy for early
615adoption of a cap-and-trade system for greenhouse gases in the
616context of federal climate change legislation and the
617development of new international compacts.
618     (f)  The specific benefits to the state's economy
619associated with the creation and sale of emissions offsets from
620economic sectors outside of the emissions cap.
621     (g)  The potential effects on leakage if economic activity
622relocates out of the state.
623     (h)  The effectiveness of the combination of measures in
624meeting identified targets.
625     (i)  The implications for near-term periods of long-term
626targets specified in the overall policy.
627     (j)  The overall costs and benefits of a cap-and-trade
628system to the state economy.
629     (k)  How to moderate impacts on low-income consumers that
630result from energy price increases.
631     (l)  Consistency of the program with other state and
632possible federal efforts.
633     (m)  The feasibility and cost-effectiveness of extending
634the program scope as broadly as possible among emitting
635activities and sinks in Florida.
636     (n)  Evaluation of the conditions under which Florida
637should consider linking its trading system to the systems of
638other states or other countries and how that might be affected
639by the potential inclusion in the rule of a safety valve.
640     (8)  Recognizing that the international, national, and
641neighboring state policies and the science of climate change
642will evolve, prior to submitting the proposed rules to the
643Legislature for consideration, the department shall submit the
644proposed rules to the Florida Energy and Climate Commission,
645which shall review the proposed rules and submit a report to the
646Governor, the President of the Senate, the Speaker of the House
647of Representatives, and the department. The report shall
648address:
649     (a)  The overall cost-effectiveness of the proposed cap-
650and-trade system in combination with other policies and measures
651in meeting statewide targets.
652     (b)  The administrative burden to the state of
653implementing, monitoring, and enforcing the program.
654     (c)  The administrative burden on entities covered under
655the cap.
656     (d)  The impacts on electricity prices for consumers.
657     (e)  The specific benefits to the state's economy for early
658adoption of a cap-and-trade system for greenhouse gases in the
659context of federal climate change legislation and the
660development of new international compacts.
661     (f)  The specific benefits to the state's economy
662associated with the creation and sale of emissions offsets from
663economic sectors outside of the emissions cap.
664     (g)  The potential effects on leakage if economic activity
665relocates out of the state.
666     (h)  The effectiveness of the combination of measures in
667meeting identified targets.
668     (i)  The economic implications for near-term periods of
669short-term and long-term targets specified in the overall
670policy.
671     (j)  The overall costs and benefits of a cap-and-trade
672system to the economy of the state.
673     (k)  The impacts on low-income consumers that result from
674energy price increases.
675     (l)  The consistency of the program with other state and
676possible federal efforts.
677     (m)  The evaluation of the conditions under which the state
678should consider linking its trading system to the systems of
679other states or other countries and how that might be affected
680by the potential inclusion in the rule of a safety valve.
681     (n)  The timing and changes in the external environment,
682such as proposals by other states or implementation of a federal
683program that would spur reevaluation of the Florida program.
684     (o)  The conditions and options for eliminating the Florida
685program if a federal program were to supplant it.
686     (p)  The need for a regular reevaluation of the progress of
687other emitting regions of the country and of the world, and
688whether other regions are abating emissions in a commensurate
689manner.
690     (q)  The desirability of and possibilities of broadening
691the scope of the state's cap-and-trade system at a later date to
692include more emitting activities as well as sinks in Florida,
693the conditions that would need to be met to do so, and how the
694program would encourage these conditions to be met, including
695developing monitoring and measuring techniques for land use
696emissions and sinks, regulating sources upstream, and other
697considerations.
698     Section 7.  Paragraph (d) of subsection (1) of section
699366.8255, Florida Statutes, is amended to read:
700     366.8255  Environmental cost recovery.-
701     (1)  As used in this section, the term:
702     (d)  "Environmental compliance costs" includes all costs or
703expenses incurred by an electric utility in complying with
704environmental laws or regulations, including, but not limited
705to:
706     1.  Inservice capital investments, including the electric
707utility's last authorized rate of return on equity thereon.
708     2.  Operation and maintenance expenses.
709     3.  Fuel procurement costs.
710     4.  Purchased power costs.
711     5.  Emission allowance costs.
712     6.  Direct taxes on environmental equipment.
713     7.  Costs or expenses prudently incurred by an electric
714utility pursuant to an agreement entered into on or after the
715effective date of this act and prior to October 1, 2002, between
716the electric utility and the Florida Department of Environmental
717Protection or the United States Environmental Protection Agency
718for the exclusive purpose of ensuring compliance with ozone
719ambient air quality standards by an electrical generating
720facility owned by the electric utility.
721     8.  Costs or expenses prudently incurred for the
722quantification, reporting, and third-party verification as
723required for participation in greenhouse gas emission registries
724for greenhouse gases as defined in s. 403.44. As used in this
725subparagraph, the term "greenhouse gases" means carbon dioxide,
726methane, nitrous oxide, and fluorinated gases such as
727hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
728     9.  Costs or expenses prudently incurred for scientific
729research and geological assessments of carbon capture and
730storage conducted in this state for the purpose of reducing an
731electric utility's greenhouse gas emissions when such costs or
732expenses are incurred in joint research projects with Florida
733state government agencies and Florida state universities.
734     Section 8.  Subsection (14) of section 403.503, Florida
735Statutes, is amended to read:
736     403.503  Definitions relating to Florida Electrical Power
737Plant Siting Act.-As used in this act:
738     (14)  "Electrical power plant" means, for the purpose of
739certification, any steam or solar electrical generating facility
740using any process or fuel, including nuclear materials, except
741that this term does not include any steam or solar electrical
742generating facility of less than 75 megawatts in capacity or any
743solar electrical generating facility of any sized capacity
744unless the applicant for such a facility elects to apply for
745certification under this act. This term also includes the site;
746all associated facilities that will be owned by the applicant
747that are physically connected to the site; all associated
748facilities that are indirectly connected to the site by other
749proposed associated facilities that will be owned by the
750applicant; and associated transmission lines that will be owned
751by the applicant which connect the electrical power plant to an
752existing transmission network or rights-of-way to which the
753applicant intends to connect. At the applicant's option, this
754term may include any offsite associated facilities that will not
755be owned by the applicant; offsite associated facilities that
756are owned by the applicant but that are not directly connected
757to the site; any proposed terminal or intermediate substations
758or substation expansions connected to the associated
759transmission line; or new transmission lines, upgrades, or
760improvements of an existing transmission line on any portion of
761the applicant's electrical transmission system necessary to
762support the generation injected into the system from the
763proposed electrical power plant.
764     Section 9.  Section 288.9602, Florida Statutes, is amended
765to read:
766     288.9602  Findings and declarations of necessity.-The
767Legislature finds and declares that:
768     (1)  There is a need to enhance economic activity in the
769cities and counties of the state by attracting manufacturing,
770development, redevelopment of brownfield areas, business
771enterprise management, and other activities conducive to
772economic promotion in order to provide a stronger, more
773balanced, and stable economy in the cities and counties of the
774state.
775     (2)  A significant portion of businesses located in the
776cities and counties of the state or desiring to locate in the
777cities and counties of the state encounter difficulty in
778obtaining financing on terms competitive with those available to
779businesses located in other states and nations or are unable to
780obtain such financing at all.
781     (3)  The difficulty in obtaining such financing impairs the
782expansion of economic activity and the creation of jobs and
783income in communities throughout the state.
784     (4)  The businesses most often affected by these financing
785difficulties are small businesses critical to the economic
786development of the state cities and counties of Florida.
787     (5)  The economic well-being of the people in, and the
788commercial and industrial resources of, the cities and counties
789of the state would be enhanced by the provision of financing to
790businesses on terms competitive with those available in the most
791developed financial markets worldwide.
792     (6)  In order to improve the prosperity and welfare of the
793cities and counties of this state and its inhabitants, to
794improve and promote the financing of projects related to the
795economic development of the cities and counties of this state,
796including redevelopment of brownfield areas, and to increase the
797purchasing power and opportunities for gainful employment of
798citizens of the cities and counties of this state, it is
799necessary and in the public interest to facilitate the financing
800of such projects as provided for in this act and to do so
801without regard to the boundaries between counties,
802municipalities, special districts, and other local governmental
803bodies or agencies in order to more effectively and efficiently
804serve the interests of the greatest number of people in the
805widest area practicable.
806     (7)  In order to promote and stimulate development and
807advance the business prosperity and economic welfare of the
808cities and counties of this state and its inhabitants; to
809encourage and assist new business and industry in this state
810through loans, investments, or other business transactions; to
811rehabilitate and assist existing businesses; to stimulate and
812assist in the expansion of all kinds of for-profit and not-for-
813profit business activity; and to create maximum opportunities
814for employment, encouragement of thrift, and improvement of the
815standard of living of the citizens of Florida, it is necessary
816and in the public interest to facilitate the cooperation and
817action between organizations, public and private, in the
818promotion, development, and conduct of all kinds of for-profit
819and not-for-profit business activity in the state.
820     (8)  In order to efficiently and effectively achieve the
821purposes of this act, it is necessary and in the public interest
822to create a special development finance authority to cooperate
823and act in conjunction with public agencies of this state and
824local governments of this state, through interlocal agreements
825pursuant to the Florida Interlocal Cooperation Act of 1969, in
826the promotion and advancement of projects related to economic
827development, including redevelopment of brownfield areas,
828throughout the state.
829     (9)  The purposes to be achieved by the special development
830finance authority through such projects and such financings of
831business and industry in compliance with the criteria and the
832requirements of this act are predominantly the public purposes
833stated in this section, and such purposes implement the
834governmental purposes under the State Constitution of providing
835for the health, safety, and welfare of the people of the state,
836including implementing the purpose of s. 10(c), Art. VII of the
837State Constitution and simultaneously provide new and innovative
838means for the investment of public trust funds in accordance
839with s. 10(a), Art. VII of the State Constitution.
840     Section 10.  Subsections (6), (11), and (12) of section
841288.9603, Florida Statutes, are amended to read:
842     288.9603  Definitions.-
843     (6)  "Debt service" shall mean for any bonds issued by the
844corporation or for any bonds or other form of indebtedness and
845for which a guaranty has been issued pursuant to ss. 288.9606,
846288.9607, and 288.9608, for any period for which such
847determination is to be made, the aggregate amount of all
848interest charges due or which shall become due on or with
849respect to such bonds or indebtedness during the period for
850which such determination is being made, plus the aggregate
851amount of scheduled principal payments due or which shall become
852due on or with respect to such bonds or indebtedness during the
853period for which such determination is being made. Scheduled
854principal payments may include only principal payments that are
855scheduled as part of the terms of the original bond or
856indebtedness issue and that result in the reduction of the
857outstanding principal balance of the bonds or indebtedness.
858     (11)  "Guaranty agreement" means an agreement by and
859between the corporation and an applicant a public agency
860pursuant to the provisions of s. 288.9607.
861     (12)  "Guaranty agreement fund" means the Energy,
862Technology, and Economic Development Revenue Bond Guaranty Fund
863Reserve Account established by the corporation pursuant to s.
864288.9608.
865     Section 11.  Section 288.9604, Florida Statutes, is amended
866to read:
867     288.9604  Creation of the authority.-
868     (1)  Upon a finding of necessity by a city or county of
869this state, selected pursuant to subsection (2), There is
870created a public body corporate and politic known as the
871"Florida Development Finance Corporation." The corporation shall
872be constituted as a public instrumentality of local government,
873and the exercise by the corporation of the powers conferred by
874this act shall be deemed and held to be the performance of an
875essential public function. The corporation has the power to
876function within the corporate limits of any public agency with
877which it has entered into an interlocal agreement for any of the
878purposes of this act.
879     (2)  A city or county of Florida shall be selected by a
880search committee of Enterprise Florida, Inc. This city or county
881shall be authorized to activate the corporation. The search
882committee shall be composed of two commercial banking
883representatives, the Senate member of the partnership, the House
884of Representatives member of the partnership, and a member who
885is an industry or economic development professional.
886     (2)(3)  Upon activation of the corporation, The Governor,
887subject to confirmation by the Senate, shall appoint the board
888of directors of the corporation, who shall be five in number.
889The terms of office for the directors shall be for 4 years from
890the date of their appointment. A vacancy occurring during a term
891shall be filled for the unexpired term. A director shall be
892eligible for reappointment. At least three of the directors of
893the corporation shall be bankers who have been selected by the
894Governor from a list of bankers who were nominated by Enterprise
895Florida, Inc., and one of the directors shall be an economic
896development specialist. The chairperson of the Florida Black
897Business Investment Board shall be an ex officio member of the
898board of the corporation.
899     (3)(4)(a)  A director shall receive no compensation for his
900or her services, but is entitled to the necessary expenses,
901including travel expenses, incurred in the discharge of his or
902her duties. Each director shall hold office until his or her
903successor has been appointed.
904     (b)  The powers of the corporation shall be exercised by
905the directors thereof. A majority of the directors constitutes a
906quorum for the purposes of conducting business and exercising
907the powers of the corporation and for all other purposes. Action
908may be taken by the corporation upon a vote of a majority of the
909directors present, unless in any case the bylaws require a
910larger number. Any person may be appointed as director if he or
911she resides, or is engaged in business, which means owning a
912business, practicing a profession, or performing a service for
913compensation or serving as an officer or director of a
914corporation or other business entity so engaged, within the
915state.
916     (c)  The directors of the corporation shall annually elect
917one of their members as chair and one as vice chair. The
918corporation may employ a president, technical experts, and such
919other agents and employees, permanent and temporary, as it
920requires and determine their qualifications, duties, and
921compensation. For such legal services as it requires, the
922corporation may employ or retain its own counsel and legal
923staff. The corporation shall file with the governing body of
924each public agency with which it has entered into an interlocal
925agreement and with the Governor, the Speaker of the House of
926Representatives, the President of the Senate, the Minority
927Leaders of the Senate and House of Representatives, and the
928Auditor General, on or before 90 days after the close of the
929fiscal year of the corporation, a report of its activities for
930the preceding fiscal year, which report shall include a complete
931financial statement setting forth its assets, liabilities,
932income, and operating expenses as of the end of such fiscal
933year.
934     (4)(5)  The board may remove a director for inefficiency,
935neglect of duty, or misconduct in office only after a hearing
936and only if he or she has been given a copy of the charges at
937least 10 days before prior to such hearing and has had an
938opportunity to be heard in person or by counsel. The removal of
939a director shall create a vacancy on the board which shall be
940filled pursuant to subsection (4) (3).
941     Section 12.  Section 288.9605, Florida Statutes, is amended
942to read:
943     288.9605  Corporation powers.-
944     (1)  The powers of the corporation created by s. 288.9604
945shall include all the powers necessary or convenient to carry
946out and effectuate the purposes and provisions of this act.
947     (2)  The corporation is authorized and empowered to:
948     (a)  Have perpetual succession as a body politic and
949corporate and adopt bylaws for the regulation of its affairs and
950the conduct of its business.
951     (b)  Adopt an official seal and alter the same at its
952pleasure.
953     (c)  Maintain an office at such place or places as it may
954designate.
955     (d)  Sue and be sued in its own name and plead and be
956impleaded.
957     (e)  Enter into interlocal agreements pursuant to s.
958163.01(7) with public agencies of this state for the exercise of
959any power, privilege, or authority consistent with the purposes
960of this act.
961     (f)  Issue, from time to time, revenue bonds, notes, or
962other evidence of indebtedness, including, but not limited to,
963taxable bonds and bonds the interest on which is exempt from
964federal income taxation, for the purpose of financing and
965refinancing any capital projects that promote economic
966development within the state, thereby benefitting the citizens
967of the state, for applicants and exercise all powers in
968connection with the authorization, issuance, and sale of bonds,
969subject to the provisions of s. 288.9606.
970     (g)  Issue bond anticipation notes in connection with the
971authorization, issuance, and sale of such bonds, pursuant to the
972provisions of s. 288.9606.
973     (h)  Make and execute contracts and other instruments
974necessary or convenient to the exercise of its powers under the
975act.
976     (i)  Disseminate information about itself and its
977activities.
978     (j)  Acquire, by purchase, lease, option, gift, grant,
979bequest, devise, or otherwise, real property, together with any
980improvements thereon, or personal property for its
981administrative purposes or in furtherance of the purposes of
982this act, together with any improvements thereon.
983     (k)  Hold, improve, clear, or prepare for development any
984such property.
985     (l)  Mortgage, pledge, hypothecate, or otherwise encumber
986or dispose of any real or personal property.
987     (m)  Insure or provide for insurance of any real or
988personal property or operations of the corporation or any
989private enterprise against any risks or hazards, including the
990power to pay premiums on any such insurance.
991     (n)  Establish and fund a guaranty fund in furtherance of
992the purposes of this act.
993     (o)  Invest funds held in reserve or sinking funds or any
994such funds not required for immediate disbursement in property
995or securities in such manner as the board shall determine,
996subject to the authorizing resolution on any bonds issued, and
997to terms established in the investment agreement pursuant to ss.
998288.9606, 288.9607, and 288.9608, and redeem such bonds as have
999been issued pursuant to s. 288.9606 at the redemption price
1000established therein or purchase such bonds at less than
1001redemption price, all such bonds so redeemed or purchased to be
1002canceled.
1003     (p)  Borrow money and apply for and accept advances, loans,
1004grants, contributions, and any other form of financial
1005assistance from the Federal Government or the state, county, or
1006other public agency body or from any sources, public or private,
1007for the purposes of this act and give such security as may be
1008required and enter into and carry out contracts or agreements in
1009connection therewith; and include in any contract for financial
1010assistance with the Federal Government or the state, county, or
1011other public agency for, or with respect to, any purposes under
1012this act and related activities such conditions imposed pursuant
1013to federal laws as the county or municipality or other public
1014agency deems reasonable and appropriate which are not
1015inconsistent with the provisions of this act.
1016     (q)  Make or have all surveys and plans necessary for the
1017carrying out of the purposes of this act, contract with any
1018person, public or private, in making and carrying out such
1019plans, and adopt, approve, modify, and amend such plans.
1020     (r)  Develop, test, and report methods and techniques and
1021carry out demonstrations and other activities for the promotion
1022of any of the purposes of this act.
1023     (s)  Apply for, accept, and utilize grants from the Federal
1024Government or the state, county, or other public agency
1025available for any of the purposes of this act.
1026     (t)  Make expenditures necessary to carry out the purposes
1027of this act.
1028     (u)  Exercise all or any part or combination of powers
1029granted in this act.
1030     (v)  Enter into investment agreements with the Florida
1031Black Business Investment Board concerning the issuance of bonds
1032and other forms of indebtedness and capital for the purposes of
1033ss. 288.707-288.714.
1034     (w)  Determine the situations and circumstances for
1035participation in partnerships by agreement with local
1036governments, financial institutions, and others associated with
1037the redevelopment of brownfield areas pursuant to the
1038Brownfields Redevelopment Act for a limited state guaranty of
1039revenue bonds, loan guarantees, or loan loss reserves.
1040     Section 13.  Subsections (3) and (5) of section 288.9606,
1041Florida Statutes, are amended, and subsection (7) is added to
1042that section, to read:
1043     288.9606  Issue of revenue bonds.-
1044     (3)  Bonds issued under this section shall be authorized by
1045a public agency of this state pursuant to the terms of an
1046interlocal agreement, unless such bonds are issued pursuant to
1047subsection (7); may be issued in one or more series; and shall
1048bear such date or dates, be payable upon demand or mature at
1049such time or times, bear interest rate or rates, be in such
1050denomination or denominations, be in such form either with or
1051without coupon or registered, carry such conversion or
1052registration privileges, have such rank or priority, be executed
1053in such manner, be payable in such medium of payments at such
1054place or places, be subject to such terms of redemption, with or
1055without premium, be secured in such manner, and have such other
1056characteristics as may be provided by the corporation interlocal
1057agreement issued pursuant thereto. Bonds issued under this
1058section may be sold in such manner, either at public or private
1059sale, and for such price as the corporation may determine will
1060effectuate the purpose of this act.
1061     (5)  In any suit, action, or proceeding involving the
1062validity or enforceability of any bond issued under this act, or
1063the security therefor, any such bond reciting in substance that
1064it has been issued by the corporation in connection with any
1065purpose of the act shall be conclusively deemed to have been
1066issued for such purpose, and such purpose shall be conclusively
1067deemed to have been carried out in accordance with the act. The
1068complaint in any action to validate such bonds shall be filed
1069only in the Circuit Court for Leon County. The notice required
1070to be published by s. 75.06 shall be published only in Leon
1071County, and the complaint and order of the circuit court shall
1072be served only on the State Attorney of the Second Judicial
1073Circuit and on the state attorney of each circuit in each county
1074where the public agencies which were initially a party to the
1075interlocal agreement are located. Notice of such proceedings
1076shall be published in the manner and the time required by s.
107775.06, in Leon County and in each county where the public
1078agencies which were initially a party to the interlocal
1079agreement are located. Obligations of the corporation pursuant
1080to a loan agreement as described in this subsection may be
1081validated as provided in chapter 75. The validation of at least
1082the first bonds approved by the corporation shall be appealed to
1083the Florida Supreme Court. The complaint in the validation
1084proceeding shall specifically address the constitutionality of
1085using the investment of the earnings accrued and collected upon
1086the investment of the minimum balance funds required to be
1087maintained in the State Transportation Trust Fund to guarantee
1088such bonds. If such proceeding results in an adverse ruling and
1089such bonds and guaranty are found to be unconstitutional,
1090invalid, or unenforceable, then the corporation shall no longer
1091be authorized to use the investment of the earnings accrued and
1092collected upon the investment of the minimum balance of the
1093State Transportation Trust Fund to guarantee any bonds.
1094     (7)  Notwithstanding any provision of this section, the
1095corporation in its corporate capacity may, without authorization
1096from a public agency under s. 163.01(7), issue revenue bonds or
1097other evidence of indebtedness under this section to:
1098     (a)  Finance the undertaking of any project within the
1099state that promotes renewable energy as defined in s. 377.803 or
1100s. 366.91;
1101     (b)  Finance the undertaking of any project within the
1102state that is a project contemplated or allowed under s. 406 of
1103the American Recovery and Reinvestment Act of 2009; or
1104     (c)  If permitted by federal law, finance qualifying
1105improvement projects within the state under s. 163.08.
1106     Section 14.  Section 288.9607, Florida Statutes, is amended
1107to read:
1108     288.9607  Guaranty of bond issues.-
1109     (1)  The corporation may is hereby authorized to approve or
1110deny, by a majority vote of the membership of the directors, a
1111guaranty of debt service payments for bonds or other
1112indebtedness used to finance any capital project that promotes
1113economic development in the state, including, but not limited
1114to, those capital projects for which revenue bonds are the
1115guaranty of any revenue bonds issued under pursuant to this act,
1116if any such guaranty does not exceed 5 percent of the total
1117aggregate principal amount of bonds or other indebtedness
1118relating to any one capital project. The corporation may also
1119use moneys deposited into the Energy, Technology, and Economic
1120Development Guaranty Fund to satisfy requirements to obtain
1121federal loan guarantees for capital projects authorized pursuant
1122to this section. The guaranty may also be of the obligations of
1123the corporation with respect to any letter of credit, bond
1124insurance, or other form of credit enhancement provided by any
1125person with respect to any revenue bonds issued by the
1126corporation pursuant to this act.
1127     (2)  Any applicant for financing from the corporation,
1128requesting a guaranty of the bonds issued by the corporation
1129under this act must submit a guaranty application, in a form
1130acceptable to the corporation, together with supporting
1131documentation to the corporation as provided in this section.
1132     (3)  All applicants which have entered into a guaranty
1133agreement with the corporation shall pay a guaranty premium on
1134such terms and at such rates as the corporation shall determine
1135before prior to the issuance of the guaranty bonds. The
1136corporation may adopt such guaranty premium structures as it
1137deems appropriate, including, without limitation, guaranty
1138premiums which are payable one time upon the issuance of the
1139guaranty bonds or annual premiums payable upon the outstanding
1140principal balance of bonds or other indebtedness that is
1141guaranteed from time to time. The premium payment may be
1142collected by the corporation from any the lessee of the project
1143involved, from the applicant, or from any other payee of any the
1144loan agreement involved.
1145     (4)  All applications for a guaranty must acknowledge that
1146as a condition to the issuance of the guaranty, the corporation
1147may require that the financing must be secured by a mortgage or
1148security interest on the property acquired which will have such
1149priority over other liens on such property as may be required by
1150the corporation, and that the financing must be guaranteed by
1151such person or persons with such ownership interest in the
1152applicant as may be required by the corporation.
1153     (5)  Personal financial records, trade secrets, or
1154proprietary information of applicants delivered to or obtained
1155by the corporation shall be confidential and exempt from the
1156provisions of s. 119.07(1).
1157     (6)  If the application for a guaranty is approved by the
1158corporation, the corporation and the applicant shall enter into
1159a guaranty agreement. In accordance with the provisions of the
1160guaranty agreement, the corporation guarantees to use the funds
1161on deposit in its Energy, Technology, and Economic Development
1162Guaranty Fund Revenue Bond Guaranty Reserve Account to meet debt
1163service amortization payments on the bonds or indebtedness as
1164they become due, in the event and to the extent that the
1165applicant is unable to meet such payments in accordance with the
1166terms of the bond indenture when called to do so by the trustee
1167of the bondholders, or to make similar payments to reimburse any
1168person which has provided credit enhancement for the bonds and
1169which has advanced funds to meet such debt service amortization
1170payments as they become due, if such guaranty of the corporation
1171is limited to 5 percent of the total aggregate principal amount
1172of bonds or other indebtedness relating to any one capital
1173project. The corporation may also use moneys deposited in the
1174Energy, Technology, and Economic Development Guaranty Fund to
1175satisfy requirements to obtain federal loan guarantees for
1176capital projects authorized under this section. If the applicant
1177defaults on debt service bond amortization payments, the
1178corporation may use funds on deposit in the Energy, Technology,
1179and Economic Development Guaranty Fund Revenue Bond Guaranty
1180Reserve Account to pay insurance, maintenance, and other costs
1181which may be required for the preservation of any capital
1182project or other collateral security for any bond or
1183indebtedness issued to finance a capital project for which debt
1184service payments are guaranteed by the corporation issued by the
1185corporation, or to otherwise protect the reserve account from
1186loss, or to minimize losses to the reserve account, in each case
1187in such manner as may be deemed necessary and advisable by the
1188corporation.
1189     (7)(a)  The corporation is authorized to enter into an
1190investment agreement with the Department of Transportation and
1191the State Board of Administration concerning the investment of
1192the earnings accrued and collected upon the investment of the
1193minimum balance of funds required to be maintained in the State
1194Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1195investment shall be limited as follows:
1196     1.  Not more than $4 million of the investment earnings
1197earned on the investment of the minimum balance of the State
1198Transportation Trust Fund in a fiscal year shall be at risk at
1199any time on one or more bonds or series of bonds issued by the
1200corporation.
1201     2.  The investment earnings shall not be used to guarantee
1202any bonds issued after June 30, 1998, and in no event shall the
1203investment earnings be used to guarantee any bond issued for a
1204maturity longer than 15 years.
1205     3.  The corporation shall pay a reasonable fee, set by the
1206State Board of Administration, in return for the investment of
1207such funds. The fee shall not be less than the comparable rate
1208for similar investments in terms of size and risk.
1209     4.  The proceeds of bonds, or portions thereof, issued by
1210the corporation for which a guaranty has been or will be issued
1211pursuant to s. 288.9606, s. 288.9608, or this section used to
1212make loans to any one person, including any related interests,
1213as defined in s. 658.48, of such person, shall not exceed 20
1214percent of the principal of all such outstanding bonds of the
1215corporation issued prior to the first composite bond issue of
1216the corporation, or December 31, 1995, whichever comes first,
1217and shall not exceed 15 percent of the principal of all such
1218outstanding bonds of the corporation issued thereafter, in each
1219case determined as of the date of issuance of the bonds for
1220which such determination is being made and taking into account
1221the principal amount of such bonds to be issued. The provisions
1222of this subparagraph shall not apply when the total amount of
1223all such outstanding bonds issued by the corporation is less
1224than $10 million. For the purpose of calculating the limits
1225imposed by the provisions of this subparagraph, the first $10
1226million of bonds issued by the corporation shall be taken into
1227account.
1228     5.  The corporation shall establish a debt service reserve
1229account which contains not less than 6 months' debt service
1230reserves from the proceeds of the sale of any bonds, or portions
1231thereof, guaranteed by the corporation.
1232     6.  The corporation shall establish an account known as the
1233Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1234corporation shall deposit a sum of money or other cash
1235equivalents into this fund and maintain a balance of money or
1236cash equivalents in this fund, from sources other than the
1237investment of earnings accrued and collected upon the investment
1238of the minimum balance of funds required to be maintained in the
1239State Transportation Trust Fund, not less than a sum equal to 1
1240year of maximum debt service on all outstanding bonds, or
1241portions thereof, of the corporation for which a guaranty has
1242been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In
1243the event the corporation fails to maintain the balance required
1244pursuant to this subparagraph for any reason other than a
1245default on a bond issue of the corporation guaranteed pursuant
1246to this section or because of the use by the corporation of any
1247such funds to pay insurance, maintenance, or other costs which
1248may be required for the preservation of any project or other
1249collateral security for any bond issued by the corporation, or
1250to otherwise protect the Revenue Bond Guaranty Reserve Account
1251from loss while the applicant is in default on amortization
1252payments, or to minimize losses to the reserve account in each
1253case in such manner as may be deemed necessary or advisable by
1254the corporation, the corporation shall immediately notify the
1255Department of Transportation of such deficiency. Any
1256supplemental funding authorized by an investment agreement
1257entered into with the Department of Transportation and the State
1258Board of Administration concerning the use of investment
1259earnings of the minimum balance of funds is void unless such
1260deficiency of funds is cured by the corporation within 90 days
1261after the corporation has notified the Department of
1262Transportation of such deficiency.
1263     (b)  Unless specifically prohibited in the General
1264Appropriations Act, the earnings accrued and collected upon the
1265investment of the minimum balance of funds required to be
1266maintained in the State Transportation Trust Fund may continue
1267to be used pursuant to paragraph (a).
1268     (c)  The guaranty is shall not be a general obligation of
1269the corporation or of the state, but is shall be a special
1270obligation, which constitutes the investment of a public trust
1271fund. In no event shall the guaranty constitute an indebtedness
1272of the corporation, the state of Florida, or any political
1273subdivision thereof within the meaning of any constitutional or
1274statutory limitation. Each guaranty agreement shall have plainly
1275stated on the face thereof that it has been entered into under
1276the provisions of this act and that it does not constitute an
1277indebtedness of the corporation, the state, or any political
1278subdivision thereof within any constitutional or statutory
1279limitation, and that neither the full faith and credit of the
1280state of Florida nor any of its revenues is pledged to meet any
1281of the obligations of the corporation under such guaranty
1282agreement. Each such agreement shall state that the obligation
1283of the corporation under the guaranty shall be limited to the
1284funds available in the Energy, Technology, and Economic
1285Development Guaranty Fund Revenue Bond Guaranty Reserve Account
1286as authorized by this section.
1287
1288The corporation shall include, as part of the annual report
1289prepared pursuant to s. 288.9610, a detailed report concerning
1290the use of guaranteed bond proceeds for loans guaranteed or
1291issued pursuant to any agreement with the Florida Black Business
1292Investment Board, including the percentage of such loans
1293guaranteed or issued and the total volume of such loans
1294guaranteed or issued.
1295     (8)  In the event the corporation does not approve the
1296application for a guaranty, the applicant shall be notified in
1297writing of the corporation's determination that the application
1298not be approved.
1299     (9)  The membership of the corporation is authorized and
1300directed to conduct such investigation as it may deem necessary
1301for promulgation of regulations to govern the operation of the
1302guaranty program authorized by this section. The regulations may
1303include such other additional provisions, restrictions, and
1304conditions as the corporation, after its investigation referred
1305to in this subsection, shall determine to be proper to achieve
1306the most effective utilization of the guaranty program. This may
1307include, without limitation, a detailing of the remedies that
1308must be exhausted by the bondholders, or a trustee acting on
1309their behalf, or other credit provided before prior to calling
1310upon the corporation to perform under its guaranty agreement and
1311the subrogation of other rights of the corporation with
1312reference to the capital project and its operation or the
1313financing in the event the corporation makes payment pursuant to
1314the applicable guaranty agreement. The regulations promulgated
1315by the corporation to govern the operation of the guaranty
1316program may shall contain specific provisions with respect to
1317the rights of the corporation to enter, take over, and manage
1318all financed properties upon default. These regulations shall be
1319submitted by set forth the respective rights of the corporation
1320to the Florida Energy and Climate Commission for approval and
1321the bondholders in regard thereto.
1322     (10)  The guaranty program described in this section may be
1323used by the corporation in conjunction with any federal guaranty
1324programs described in s. 406 of the American Recovery and
1325Reinvestment Act of 2009. All policies, procedures, and
1326regulations of the guaranty program adopted by the corporation,
1327to the extent such guaranty program of the corporation is used
1328in conjunction with a federal guaranty program described in s.
1329406 of the American Recovery and Reinvestment Act of 2009, must
1330be consistent with s. 406 of the American Recovery and
1331Reinvestment Act of 2009.
1332     Section 15.  Section 288.9608, Florida Statutes, is amended
1333to read:
1334     288.9608  Creation and funding of the Energy, Technology,
1335and Economic Development Guaranty Fund guaranty account.-
1336     (1)  The corporation shall establish a debt service reserve
1337account which contains not less than 6 months' debt service
1338reserves from the proceeds of the sale of any bonds guaranteed
1339by the corporation. Funds in such debt service reserve account
1340shall be used prior to funds in the Revenue Bond Guaranty
1341Reserve Account established in subsection (2). The corporation
1342shall make best efforts to liquidate collateralized property and
1343draw upon personal guarantees, and shall utilize the Revenue
1344Bond Guaranty Reserve Account prior to use of supplemental
1345funding for the Guaranty Reserve Account under the provisions of
1346subsection (3).
1347     (2)(a)  The corporation shall establish an account known as
1348the Energy, Technology, and Economic Development Guaranty Fund
1349Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The
1350corporation may shall deposit moneys a sum of money or other
1351cash equivalents into the this fund and maintain a balance in
1352the this fund, from general revenue funds of the state as are
1353authorized for that purpose or any other designated funding
1354sources not inconsistent with state law sources other than the
1355State Transportation Trust Fund, not less than a sum equal to 1
1356year of maximum debt service on all outstanding bonds, or
1357portions thereof, of the corporation for which a guaranty has
1358been issued pursuant to ss. 288.9606, 288.9607, and 288.9608.
1359     (2)(b)  If the corporation determines that the moneys in
1360the guaranty agreement fund are not sufficient to meet the
1361obligations of the guaranty agreement fund, the corporation is
1362authorized to use the necessary amount of any available moneys
1363that it may have which are not needed for, then or in the
1364foreseeable future, or committed to other authorized functions
1365and purposes of the corporation. Any such moneys so used may be
1366reimbursed out of the guaranty agreement fund if and when there
1367are moneys therein available for the purpose.
1368     (3)(c)  The determination of when additional moneys will be
1369needed for the guaranty agreement fund, the amounts that will be
1370needed, and the availability or unavailability of other moneys
1371shall be made solely by the corporation in the exercise of its
1372discretion. However, supplemental funding for the Guaranty Fund
1373as described in subsection (3) shall be made in accordance with
1374the investment agreement of the corporation and the Department
1375of Transportation and the State Board of Administration.
1376     (3)(a)  If the corporation determines that the funds in the
1377Guaranty Fund will not be sufficient to meet the present or
1378reasonably projected obligations of the Guaranty Fund, due to a
1379default on a loan made by the corporation from the proceeds of a
1380bond issued by the corporation which is guaranteed pursuant to
1381s. 288.9607(7), no later than 90 days before amortization
1382payments are due on such bonds, the corporation shall notify the
1383Secretary of Transportation and the State Board of
1384Administration of the amount of funds required to meet, as and
1385when due, all amortization payments for which the Guaranty Fund
1386is obligated. The Secretary of Transportation shall immediately
1387notify the Speaker of the House of Representatives, the
1388President of the Senate, and the chairs of the Senate and House
1389Committees on Appropriations of the amount of funds required,
1390and the projected impact on each affected year of the adopted
1391work program of the Department of Transportation.
1392     (b)  Within 30 days of the receipt of notification from the
1393corporation, the Department of Transportation shall submit a
1394budget amendment request to the Executive Office of the Governor
1395pursuant to chapter 216, to increase budget authority to carry
1396out the purposes of this section. Upon approval of said
1397amendment, the department shall proceed to amend the adopted
1398work program, if necessary, in accordance with the amendment.
1399Within 60 days of the receipt of notification, and subject to
1400approval of the budget authority, the Secretary of
1401Transportation shall transfer, subject to the amount available
1402from the source described in paragraph (c), the amount of funds
1403requested by the corporation required to meet, as and when due,
1404all amortization payments for which the Guaranty Fund is
1405obligated. Any moneys so transferred shall be reimbursed to the
1406Department of Transportation, with interest at the rate earned
1407on investment by the State Treasury, from the funds available in
1408the Guaranty Fund or as otherwise available to the corporation.
1409     (c)  Pursuant to s. 288.9607(7), the Secretary of
1410Transportation and the State Board of Administration may make
1411available for transfer to the Guaranty Fund, earnings accrued
1412and collected upon the investment of the minimum balance of
1413funds required to be maintained in the State Transportation
1414Trust Fund. However, the earnings accrued and collected upon the
1415investment of the minimum balance of funds required to be
1416maintained in the State Transportation Trust Fund which shall be
1417subject to transfer shall be limited to those earnings accrued
1418and collected on the investment of the minimum balance of funds
1419required to be maintained in the State Transportation Trust Fund
1420for the fiscal year in which the notification is received by the
1421secretary and fiscal years thereafter.
1422     (4)  If the corporation receives supplemental funding for
1423the Guaranty Fund under the provisions of this section, then any
1424proceeds received by the corporation with respect to a loan in
1425default, including proceeds from the sale of collateral for such
1426loan, enforcement of personal guarantees or other pledges to the
1427corporation to secure such loan, shall first be applied to the
1428obligation of the corporation to repay the Department of
1429Transportation pursuant to this section. Until such repayment is
1430complete, no new bonds may be guaranteed pursuant to this
1431section.
1432     (5)  Prior to the use of the guaranty provided in this
1433section, and on an annual basis, the corporation must certify in
1434writing to the State Board of Administration and the Secretary
1435of Transportation that it has fully implemented the requirements
1436of this section and s. 288.9607 and the regulations of the
1437corporation.
1438     Section 16.  Section 288.9609, Florida Statutes, is amended
1439to read:
1440     288.9609  Bonds as legal investments.-All banks, trust
1441companies, bankers, savings banks and institutions, building and
1442loan associations, savings and loan associations, investment
1443companies, and other persons carrying on a banking and
1444investment business; all insurance companies, insurance
1445associations, and other persons carrying on an insurance
1446business; and all executors, administrators, curators, trustees,
1447and other fiduciaries may legally invest any sinking funds,
1448moneys, or other funds belonging to them or within their control
1449in any bonds or other obligations issued by the corporation
1450pursuant to an interlocal agreement with a public agency of this
1451state. Such bonds and obligations shall be authorized security
1452for all public deposits. It is the purpose of this section to
1453authorize all persons, political subdivisions, and officers,
1454public and private, to use any funds owned or controlled by them
1455for the purchase of any such bonds or other obligations. Nothing
1456contained in this section with regard to legal investments shall
1457be construed as relieving any person of any duty of exercising
1458reasonable care in selecting securities.
1459     Section 17.  Section 288.9610, Florida Statutes, is amended
1460to read:
1461     288.9610  Annual reports of Florida Development Finance
1462Corporation.-By December 1 of each year, the Florida Development
1463Finance Corporation shall submit to the Governor, the President
1464of the Senate, the Speaker of the House of Representatives, the
1465Senate Minority Leader, and the House Minority Leader, and the
1466city or county activating the Florida Development Finance
1467Corporation a complete and detailed report setting forth:
1468     (1)  The evaluation required in s. 11.45(3)(j).
1469     (2)  The operations and accomplishments of the Florida
1470Development Finance Corporation, including the number of
1471businesses assisted by the corporation.
1472     (3)  Its assets and liabilities at the end of its most
1473recent fiscal year, including a description of all of its
1474outstanding revenue bonds.
1475     Section 18.  Subsection (4) of section 206.46, Florida
1476Statutes, is amended to read:
1477     206.46  State Transportation Trust Fund.-
1478     (4)  The department may authorize the investment of the
1479earnings accrued and collected upon the investment of the
1480minimum balance of funds required to be maintained in the State
1481Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1482investment shall be limited as provided in s. 288.9607(7).
1483     Section 19.  Subsection (14) of section 215.47, Florida
1484Statutes, is amended to read:
1485     215.47  Investments; authorized securities; loan of
1486securities.-Subject to the limitations and conditions of the
1487State Constitution or of the trust agreement relating to a trust
1488fund, moneys available for investments under ss. 215.44-215.53
1489may be invested as follows:
1490     (14)  The State Board of Administration, consistent with
1491sound investment policy, may invest the earnings accrued and
1492collected upon the investment of the minimum balance of funds
1493required to be maintained in the State Transportation Trust Fund
1494pursuant to s. 339.135(6)(b). Such investment shall be limited
1495as provided in s. 288.9607(7).
1496     Section 20.  Subsection (3) of section 339.08, Florida
1497Statutes, is amended to read:
1498     339.08  Use of moneys in State Transportation Trust Fund.-
1499     (3)  The department may authorize the investment of the
1500earnings accrued and collected upon the investment of the
1501minimum balance of funds required to be maintained in the State
1502Transportation Trust Fund pursuant to s. 339.135(6)(b). Such
1503investment shall be limited as provided in s. 288.9607(7).
1504     Section 21.  Paragraph (f) of subsection (7) of section
1505339.135, Florida Statutes, is amended to read:
1506     339.135  Work program; legislative budget request;
1507definitions; preparation, adoption, execution, and amendment.-
1508     (7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.-
1509     (f)  The department may authorize the investment of the
1510earnings accrued and collected upon the investment of the
1511minimum balance of funds required to be maintained in the State
1512Transportation Trust Fund pursuant to paragraph (b). Such
1513investment shall be limited as provided in s. 288.9607(7).
1514     Section 22.  If any provision of this act or the
1515application thereof to any person or circumstance is held
1516invalid, the invalidity does not affect other provisions or
1517applications of the act that may be given effect without the
1518invalid provision or application, and to this end the provisions
1519of this act are declared to be severable.
1520     Section 23.  This act shall take effect July 1, 2010.


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