Bill Text: FL S0992 | 2010 | Regular Session | Comm Sub

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Bill Title: Renewable Energy [EPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-04-30 - Died pending review, Rule 4.7(2), companion bill(s) passed, see CS/HB 7179 (Ch. 2010-139), CS/CS/SB 1412 (Ch. 2010-102) [S0992 Detail]

Download: Florida-2010-S0992-Comm_Sub.html

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Florida Senate - 2010                              CS for SB 992 
 
By the Committee on Communications, Energy, and Public 
Utilities; and Senator Diaz de la Portilla 
579-05289A-10                                          2010992c1 
1                        A bill to be entitled 
2         An act relating to renewable energy; amending 
3         s.� 288.9602, F.S.; deleting references to cities and 
4         counties for purposes of legislative findings; 
5         amending s. 288.9603, F.S.; revising definitions; 
6         amending s. 288.9604, F.S.; deleting obsolete 
7         provisions relating to the creation of the Florida 
8         Development Finance Corporation; amending s. 288.9605, 
9         F.S.; authorizing the corporation to issue notes or 
10         other evidence of indebtedness for the purpose of 
11         financing any capital projects that promote economic 
12         development within the state; authorizing the 
13         corporation to acquire real property and any 
14         improvements to that real property; authorizing the 
15         corporation to accept money from the state, county, or 
16         any other public agency; amending s. 288.9606, F.S.; 
17         making conforming changes and deleting obsolete 
18         provisions; authorizing the corporation to approve a 
19         guaranty of debt service payments for bonds or other 
20         indebtedness used to finance any capital project that 
21         promotes economic development within the state; 
22         providing limitations on such guarantees; authorizing 
23         the corporation to use the guaranty program in 
24         conjunction with any federal guaranty programs 
25         described in s. 406 of the American Recovery and 
26         Reinvestment Act of 2009; making conforming changes 
27         and deleting obsolete provisions; amending ss. 
28         288.9607 and 288.9608, F.S.; renaming the Revenue Bond 
29         Guaranty Reserve Account as the “Energy, Technology, 
30         and Economic Development Guaranty Fund”; providing 
31         duties of the Florida Development Finance Corporation 
32         with respect to the guaranty of debt service payments 
33         for bonds or other indebtedness used to finance 
34         capital projects; limiting the percentage of the total 
35         aggregate principal amount which may be guaranteed by 
36         the fund; deleting obsolete provisions; providing for 
37         the deposit of general revenue into the fund; amending 
38         ss. 288.9609 and 288.9610, F.S., relating to 
39         requirements for bond investments and reports by the 
40         corporation; making conforming changes; amending s. 
41         366.02, F.S.; revising the definition of the term 
42         “public utility” to exclude a developer of certain 
43         solar energy generation facilities; amending s. 
44         366.91, F.S.; providing legislative intent and 
45         findings; revising definitions; deleting a requirement 
46         that each public utility continuously offer a purchase 
47         contract to all producers of renewable energy; 
48         requiring that each public utility purchase renewable 
49         energy from producers that meet specified criteria; 
50         establishing by statute the amount that is to be paid 
51         to such renewable energy producers as avoided cost; 
52         amending s. 366.92, F.S.; deleting provisions 
53         requiring that the Public Service Commission adopt 
54         rules for a renewable portfolio standard; requiring 
55         that the commission provide for full cost recovery for 
56         certain renewable energy projects; requiring the 
57         commission to approve certain renewable energy 
58         projects; providing exemptions from determination-of 
59         need requirements; providing that certain legislative 
60         determinations constitute a public need and necessity 
61         and fulfill certain determination-of-need 
62         requirements; requiring that the commission adopt 
63         rules; creating s. 366.921, F.S.; providing 
64         legislative findings; requiring that a petition filed 
65         by a provider for approval of a facility producing a 
66         Florida renewable energy resource comply with certain 
67         criteria; specifying the criteria to be considered by 
68         the commission in approving a petition for such 
69         facility; requiring that the commission’s final order 
70         approving a facility include authorization for annual 
71         cost recovery; amending s. 403.503, F.S.; redefining 
72         the term “electrical power plant” for purposes of the 
73         Florida Electrical Power Plant Siting Act to exclude 
74         solar electrical or hydroelectric generating 
75         facilities; providing that any competitively procured 
76         purchased power agreement for solar power which is 
77         voluntarily executed by an investor-owned utility by a 
78         specified date is presumed prudently incurred and the 
79         costs exceeding the utility’s full avoided costs for 
80         the purchased power shall be recoverable as an 
81         environmental compliance cost if certain conditions 
82         are met; requiring that the commission immediately 
83         consider and approve such agreements; providing an 
84         effective date. 
85 
86  Be It Enacted by the Legislature of the State of Florida: 
87 
88         Section 1. Section 288.9602, Florida Statutes, is amended 
89  to read: 
90         288.9602 Findings and declarations of necessity.—The 
91  Legislature finds and declares that: 
92         (1) There is a need to enhance economic activity in the 
93  cities and counties of the state by attracting manufacturing, 
94  development, social services, redevelopment of brownfield areas, 
95  business enterprise management, and other activities conducive 
96  to economic promotion in order to provide a stronger, more 
97  balanced, and stable economy in the cities and counties of the 
98  state. 
99         (2) A significant portion of businesses located in the 
100  cities and counties of the state or desiring to locate in the 
101  cities and counties of the state encounter difficulty in 
102  obtaining financing on terms competitive with those available to 
103  businesses located in other states and nations or are unable to 
104  obtain such financing at all. 
105         (3) The difficulty in obtaining such financing impairs the 
106  expansion of economic activity and the creation of jobs and 
107  income in communities throughout the state. 
108         (4) The businesses most often affected by these financing 
109  difficulties are small businesses critical to the economic 
110  development of the cities and counties of Florida. 
111         (5) The economic well-being of the people in, and the 
112  commercial and industrial resources of, the cities and counties 
113  of the state would be enhanced by the provision of financing to 
114  businesses on terms competitive with those available in the most 
115  developed financial markets worldwide. 
116         (6) In order to improve the prosperity and welfare of the 
117  cities and counties of this state and its inhabitants, to 
118  improve and promote the financing of projects related to the 
119  economic development of the cities and counties of this state, 
120  including redevelopment of brownfield areas, and to increase the 
121  purchasing power and opportunities for gainful employment of 
122  citizens of the cities and counties of this state, it is 
123  necessary and in the public interest to facilitate the financing 
124  of such projects as provided for in this act and to do so 
125  without regard to the boundaries between counties, 
126  municipalities, special districts, and other local governmental 
127  bodies or agencies in order to more effectively and efficiently 
128  serve the interests of the greatest number of people in the 
129  widest area practicable. 
130         (7) In order to promote and stimulate development and 
131  advance the business prosperity and economic welfare of the 
132  cities and counties of this state and its inhabitants; to 
133  encourage and assist new business and industry in this state 
134  through loans, investments, or other business transactions; to 
135  rehabilitate and assist existing businesses; to stimulate and 
136  assist in the expansion of all kinds of for-profit and not-for 
137  profit business activity; and to create maximum opportunities 
138  for employment, encouragement of thrift, and improvement of the 
139  standard of living of the citizens of Florida, it is necessary 
140  and in the public interest to facilitate the cooperation and 
141  action between organizations, public and private, in the 
142  promotion, development, and conduct of all kinds of for-profit 
143  and not-for-profit business activity in the state. 
144         (8) In order to efficiently and effectively achieve the 
145  purposes of this act, it is necessary and in the public interest 
146  to create a special development finance authority to cooperate 
147  and act in conjunction with public agencies of this state and 
148  local governments of this state, through interlocal agreements 
149  pursuant to the Florida Interlocal Cooperation Act of 1969, in 
150  the promotion and advancement of projects related to economic 
151  development, including redevelopment of brownfield areas, 
152  throughout the state. 
153         (9) The purposes to be achieved by the special development 
154  finance authority through such projects and such financings of 
155  business and industry in compliance with the criteria and the 
156  requirements of this act are predominantly the public purposes 
157  stated in this section, and such purposes implement the 
158  governmental purposes under the State Constitution of providing 
159  for the health, safety, and welfare of the people of the state, 
160  including implementing the purpose of s. 10(c), Art. VII of the 
161  State Constitution and simultaneously provide new and innovative 
162  means for the investment of public trust funds in accordance 
163  with s. 10(a), Art. VII of the State Constitution. 
164         Section 2. Section 288.9603, Florida Statutes, is amended 
165  to read: 
166         288.9603 Definitions.— 
167         (1) “Act” means the Florida Development Finance Corporation 
168  Act of 1993, and all acts supplemental thereto and amendatory 
169  thereof. 
170         (2) “Amortization payments” means periodic payments, such 
171  as monthly, semiannually, or annually, of interest on premiums, 
172  if any, and installments of principal of revenue bonds as 
173  required by an indenture of the corporation. 
174         (3) “Applicant” means the individual, firm, or corporation, 
175  whether for profit or nonprofit, charged with developing the 
176  project under the terms of the indenture of the corporation. 
177         (4) “Cash equivalents” shall include letters of credit 
178  issued by investment grade rated financial institutions or their 
179  subsidiaries; direct obligations of the government of the United 
180  States of America, or any agency thereof, or obligations 
181  unconditionally guaranteed by the United States of America; 
182  certificates of deposit issued by investment grade rated 
183  financial institutions or their subsidiaries; and investments in 
184  commercial paper which, at the time of acquisition by the 
185  corporation is accorded the highest rating by Standard & Poor’s 
186  Corporation, Moody’s Investors Services, Inc., or any other 
187  nationally recognized credit rating agency of similar standing, 
188  provided that in each such case such investments shall be 
189  convertible to cash as may be reasonably necessary for 
190  application of such moneys as and when the same are to be 
191  applied in accordance with the provisions of this act. 
192         (5) “Corporation” means the Florida Development Finance 
193  Corporation. 
194         (6) “Debt service” shall mean for any bonds issued by the 
195  corporation or for any bonds or other form of indebtedness and 
196  for which a guaranty has been issued pursuant to ss. 288.9606, 
197  288.9607, and 288.9608, for any period for which such 
198  determination is to be made, the aggregate amount of all 
199  interest charges due or which shall become due on or with 
200  respect to such bonds or indebtedness during the period for 
201  which such determination is being made, plus the aggregate 
202  amount of scheduled principal payments due or which shall become 
203  due on or with respect to such bonds or indebtedness during the 
204  period for which such determination is being made. Scheduled 
205  principal payments may include only principal payments that are 
206  scheduled as part of the terms of the original bond or 
207  indebtedness issue and that result in the reduction of the 
208  outstanding principal balance of the bonds or indebtedness. 
209         (7) “Economic development specialist” means a resident of 
210  the state who is professionally employed in the discipline of 
211  economic development or industrial development. 
212         (8) “Financial institution” means any banking corporation 
213  or trust company, savings and loan association, insurance 
214  company or related corporation, partnership, foundation, or 
215  other institution engaged primarily in lending or investing 
216  funds in this state. 
217         (9) “Maximum debt service” shall mean, for any period of 6 
218  months or 1 year, as the case may be, during the life of any 
219  bonds issued by the corporation and for which a guaranty has 
220  been issued pursuant to ss. 288.9606, 288.9607, and 288.9608 and 
221  for which such determination is being made, the maximum amount 
222  of the debt service which is due or will become due during such 
223  period of time on or with respect to such bonds. For the 
224  purposes of calculating the amount of the maximum debt service 
225  with respect to any bonds which bear interest at a variable 
226  rate, the corporation shall utilize a fixed rate which it in its 
227  reasonable discretion determines to be appropriate. 
228         (10) “Partnership” means Enterprise Florida, Inc. 
229         (11) “Guaranty agreement” means an agreement by and between 
230  the corporation and an applicant a public agency pursuant to the 
231  provisions of s. 288.9607. 
232         (12) “Guaranty agreement fund” means the Energy, 
233  Technology, and Economic Development Revenue Bond Guaranty Fund 
234  Reserve Account established by the corporation pursuant to s. 
235  288.9608. 
236         (13) “Interlocal agreement” means an agreement by and 
237  between the Florida Development Finance Corporation and a public 
238  agency of this state, pursuant to the provisions of s. 163.01. 
239         (14) “Public agency” means a political subdivision, agency, 
240  or officer of this state or of any state of the United States, 
241  including, but not limited to, state, government, county, city, 
242  school district, single and multipurpose special district, 
243  single and multipurpose public authority, metropolitan or 
244  consolidated government, an independently elected county 
245  officer, any agency of the United States Government, and any 
246  similar entity of any other state of the United States. 
247         Section 3. Section 288.9604, Florida Statutes, is amended 
248  to read: 
249         288.9604 Creation of the authority.— 
250         (1) Upon a finding of necessity by a city or county of this 
251  state, selected pursuant to subsection (2), There is created a 
252  public body corporate and politic known as the “Florida 
253  Development Finance Corporation.” The corporation shall be 
254  constituted as a public instrumentality of local government, and 
255  the exercise by the corporation of the powers conferred by this 
256  act shall be deemed and held to be the performance of an 
257  essential public function. The corporation has the power to 
258  function within the corporate limits of any public agency with 
259  which it has entered into an interlocal agreement for any of the 
260  purposes of this act. 
261         (2) A city or county of Florida shall be selected by a 
262  search committee of Enterprise Florida, Inc. This city or county 
263  shall be authorized to activate the corporation. The search 
264  committee shall be composed of two commercial banking 
265  representatives, the Senate member of the partnership, the House 
266  of Representatives member of the partnership, and a member who 
267  is an industry or economic development professional. 
268         (2)(3) Upon activation of the corporation, The Governor, 
269  subject to confirmation by the Senate, shall appoint the board 
270  of directors of the corporation, who shall be five in number. 
271  The terms of office for the directors shall be for 4 years from 
272  the date of their appointment. A vacancy occurring during a term 
273  shall be filled for the unexpired term. A director shall be 
274  eligible for reappointment. At least three of the directors of 
275  the corporation shall be bankers who have been selected by the 
276  Governor from a list of bankers who were nominated by Enterprise 
277  Florida, Inc., and one of the directors shall be an economic 
278  development specialist. The chairperson of the Florida Black 
279  Business Investment Board shall be an ex officio member of the 
280  board of the corporation. 
281         (3)(4)(a) A director shall receive no compensation for his 
282  or her services, but is entitled to the necessary expenses, 
283  including travel expenses, incurred in the discharge of his or 
284  her duties. Each director shall hold office until his or her 
285  successor has been appointed. 
286         (b) The powers of the corporation shall be exercised by the 
287  directors thereof. A majority of the directors constitutes a 
288  quorum for the purposes of conducting business and exercising 
289  the powers of the corporation and for all other purposes. Action 
290  may be taken by the corporation upon a vote of a majority of the 
291  directors present, unless in any case the bylaws require a 
292  larger number. Any person may be appointed as director if he or 
293  she resides, or is engaged in business, which means owning a 
294  business, practicing a profession, or performing a service for 
295  compensation or serving as an officer or director of a 
296  corporation or other business entity so engaged, within the 
297  state. 
298         (c) The directors of the corporation shall annually elect 
299  one of their members as chair and one as vice chair. The 
300  corporation may employ a president, technical experts, and such 
301  other agents and employees, permanent and temporary, as it 
302  requires and determine their qualifications, duties, and 
303  compensation. For such legal services as it requires, the 
304  corporation may employ or retain its own counsel and legal 
305  staff. The corporation shall file with the governing body of 
306  each public agency with which it has entered into an interlocal 
307  agreement and with the Governor, the Speaker of the House of 
308  Representatives, the President of the Senate, the Minority 
309  Leaders of the Senate and House of Representatives, and the 
310  Auditor General, on or before 90 days after the close of the 
311  fiscal year of the corporation, a report of its activities for 
312  the preceding fiscal year, which report shall include a complete 
313  financial statement setting forth its assets, liabilities, 
314  income, and operating expenses as of the end of such fiscal 
315  year. 
316         (4)(5) The board may remove a director for inefficiency, 
317  neglect of duty, or misconduct in office only after a hearing 
318  and only if he or she has been given a copy of the charges at 
319  least 10 days prior to such hearing and has had an opportunity 
320  to be heard in person or by counsel. The removal of a director 
321  shall create a vacancy on the board which shall be filled 
322  pursuant to subsection (2) (3). 
323         Section 4. Section 288.9605, Florida Statutes, is amended 
324  to read: 
325         288.9605 Corporation powers.— 
326         (1) The powers of the corporation created by s. 288.9604 
327  shall include all the powers necessary or convenient to carry 
328  out and effectuate the purposes and provisions of this act. 
329         (2) The corporation is authorized and empowered to: 
330         (a) Have perpetual succession as a body politic and 
331  corporate and adopt bylaws for the regulation of its affairs and 
332  the conduct of its business. 
333         (b) Adopt an official seal and alter the same at its 
334  pleasure. 
335         (c) Maintain an office at such place or places as it may 
336  designate. 
337         (d) Sue and be sued in its own name and plead and be 
338  impleaded. 
339         (e) Enter into interlocal agreements pursuant to s. 
340  163.01(7) with public agencies of this state for the exercise of 
341  any power, privilege, or authority consistent with the purposes 
342  of this act. 
343         (f) Issue, from time to time, revenue bonds, notes, or 
344  other evidences of indebtedness, including, but not limited to, 
345  taxable bonds and bonds the interest on which is exempt from 
346  federal income taxation, for the purpose of financing and 
347  refinancing any capital projects that promote economic 
348  development within the state thereby benefitting the residents 
349  of the state for applicants and exercise all powers in 
350  connection with the authorization, issuance, and sale of bonds, 
351  subject to the provisions of s. 288.9606. 
352         (g) Issue bond anticipation notes in connection with the 
353  authorization, issuance, and sale of such bonds, pursuant to the 
354  provisions of s. 288.9606. 
355         (h) Make and execute contracts and other instruments 
356  necessary or convenient to the exercise of its powers under the 
357  act. 
358         (i) Disseminate information about itself and its 
359  activities. 
360         (j) Acquire, by purchase, lease, option, gift, grant, 
361  bequest, devise, or otherwise, real property, together with any 
362  improvements thereon, or personal property for its 
363  administrative purposes, or in furtherance of the purposes of 
364  this act, together with any improvements thereon. 
365         (k) Hold, improve, clear, or prepare for development any 
366  such property. 
367         (l) Mortgage, pledge, hypothecate, or otherwise encumber or 
368  dispose of any real or personal property. 
369         (m) Insure or provide for insurance of any real or personal 
370  property or operations of the corporation or any private 
371  enterprise against any risks or hazards, including the power to 
372  pay premiums on any such insurance. 
373         (n) Establish and fund a guaranty fund in furtherance of 
374  the purposes of this act. 
375         (o) Invest funds held in reserve or sinking funds or any 
376  such funds not required for immediate disbursement in property 
377  or securities in such manner as the board shall determine, 
378  subject to the authorizing resolution on any bonds issued, and 
379  to terms established in the investment agreement pursuant to ss. 
380  288.9606, 288.9607, and 288.9608, and redeem such bonds as have 
381  been issued pursuant to s. 288.9606 at the redemption price 
382  established therein or purchase such bonds at less than 
383  redemption price, all such bonds so redeemed or purchased to be 
384  canceled. 
385         (p) Borrow money and apply for and accept advances, loans, 
386  grants, contributions, and any other form of financial 
387  assistance from the Federal Government or the state, county, or 
388  other public agency body or from any sources, public or private, 
389  for the purposes of this act and give such security as may be 
390  required and enter into and carry out contracts or agreements in 
391  connection therewith; and include in any contract for financial 
392  assistance with the Federal Government or the state, county, or 
393  other public agency for, or with respect to, any purposes under 
394  this act and related activities such conditions imposed pursuant 
395  to federal laws as the county or municipality or other public 
396  agency deems reasonable and appropriate which are not 
397  inconsistent with the provisions of this act. 
398         (q) Make or have all surveys and plans necessary for the 
399  carrying out of the purposes of this act, contract with any 
400  person, public or private, in making and carrying out such 
401  plans, and adopt, approve, modify, and amend such plans. 
402         (r) Develop, test, and report methods and techniques and 
403  carry out demonstrations and other activities for the promotion 
404  of any of the purposes of this act. 
405         (s) Apply for, accept, and utilize grants from the Federal 
406  Government or the state, county, or other public agency 
407  available for any of the purposes of this act. 
408         (t) Make expenditures necessary to carry out the purposes 
409  of this act. 
410         (u) Exercise all or any part or combination of powers 
411  granted in this act. 
412         (v) Enter into investment agreements with the Florida Black 
413  Business Investment Board concerning the issuance of bonds and 
414  other forms of indebtedness and capital for the purposes of ss. 
415  288.707-288.714. 
416         (w) Determine the situations and circumstances for 
417  participation in partnerships by agreement with local 
418  governments, financial institutions, and others associated with 
419  the redevelopment of brownfield areas pursuant to the 
420  Brownfields Redevelopment Act for a limited state guaranty of 
421  revenue bonds, loan guarantees, or loan loss reserves. 
422         Section 5. Section 288.9606, Florida Statutes, is amended 
423  to read: 
424         288.9606 Issue of revenue bonds.— 
425         (1) When authorized by a public agency pursuant to s. 
426  163.01(7),the corporation has power in its corporate capacity, 
427  in its discretion, to issue revenue bonds or other evidences of 
428  indebtedness which a public agency has the power to issue, from 
429  time to time to finance the undertaking of any purpose of this 
430  act and ss. 288.707-288.714, including, without limiting the 
431  generality thereof, the payment of principal and interest upon 
432  any advances for surveys and plans or preliminary loans, and has 
433  the power to issue refunding bonds for the payment or retirement 
434  of bonds previously issued. Bonds issued pursuant to this 
435  section shall bear the name “Florida Development Finance 
436  Corporation Revenue Bonds.” The security for such bonds may be 
437  based upon such revenues as are legally available. In 
438  anticipation of the sale of such revenue bonds, the corporation 
439  may issue bond anticipation notes and may renew such notes from 
440  time to time, but the maximum maturity of any such note, 
441  including renewals thereof, may not exceed 5 years from the date 
442  of issuance of the original note. Such notes shall be paid from 
443  any revenues of the corporation available therefor and not 
444  otherwise pledged or from the proceeds of sale of the revenue 
445  bonds in anticipation of which they were issued. Any bond, note, 
446  or other form of indebtedness issued pursuant to this act shall 
447  mature no later than the end of the 30th fiscal year after the 
448  fiscal year in which the bond, note, or other form of 
449  indebtedness was issued. 
450         (2) Bonds issued under this section do not constitute an 
451  indebtedness within the meaning of any constitutional or 
452  statutory debt limitation or restriction, and are not subject to 
453  the provisions of any other law or charter relating to the 
454  authorization, issuance, or sale of bonds. Bonds issued under 
455  the provisions of this act are declared to be for an essential 
456  public and governmental purpose. Bonds issued under this act, 
457  the interest on which is exempt from income taxes of the United 
458  States, together with interest thereon and income therefrom, are 
459  exempted from all taxes, except those taxes imposed by chapter 
460  220, on interest, income, or profits on debt obligations owned 
461  by corporations. 
462         (3) Bonds issued under this section shall be authorized by 
463  a public agency of this state pursuant to the terms of an 
464  interlocal agreement, unless such bonds are issued pursuant to 
465  subsection (7); may be issued in one or more series; and shall 
466  bear such date or dates, be payable upon demand or mature at 
467  such time or times, bear interest rate or rates, be in such 
468  denomination or denominations, be in such form either with or 
469  without coupon or registered, carry such conversion or 
470  registration privileges, have such rank or priority, be executed 
471  in such manner, be payable in such medium of payments at such 
472  place or places, be subject to such terms of redemption, with or 
473  without premium, be secured in such manner, and have such other 
474  characteristics as may be provided by the corporation interlocal 
475  agreement issued pursuant thereto. Bonds issued under this 
476  section may be sold in such manner, either at public or private 
477  sale, and for such price as the corporation may determine will 
478  effectuate the purpose of this act. 
479         (4) In case a director whose signature appears on any bonds 
480  or coupons issued under this act ceases to be a director before 
481  the delivery of such bonds, such signature is, nevertheless, 
482  valid and sufficient for all purposes, the same as if such 
483  director had remained in office until such delivery. 
484         (5) In any suit, action, or proceeding involving the 
485  validity or enforceability of any bond issued under this act, or 
486  the security therefor, any such bond reciting in substance that 
487  it has been issued by the corporation in connection with any 
488  purpose of the act shall be conclusively deemed to have been 
489  issued for such purpose, and such purpose shall be conclusively 
490  deemed to have been carried out in accordance with the act. The 
491  complaint in any action to validate such bonds shall be filed 
492  only in the Circuit Court for Leon County. The notice required 
493  to be published by s. 75.06 shall be published only in Leon 
494  County, and the complaint and order of the circuit court shall 
495  be served only on the State Attorney of the Second Judicial 
496  Circuit and on the state attorney of each circuit in each county 
497  where the public agencies which were initially a party to the 
498  interlocal agreement are located. Notice of such proceedings 
499  shall be published in the manner and the time required by s. 
500  75.06, in Leon County and in each county where the public 
501  agencies which were initially a party to the interlocal 
502  agreement are located. Obligations of the corporation pursuant 
503  to a loan agreement as described in this subsection may be 
504  validated as provided in chapter 75. The validation of at least 
505  the first bonds approved by the corporation shall be appealed to 
506  the Florida Supreme Court. The complaint in the validation 
507  proceeding shall specifically address the constitutionality of 
508  using the investment of the earnings accrued and collected upon 
509  the investment of the minimum balance funds required to be 
510  maintained in the State Transportation Trust Fund to guarantee 
511  such bonds. If such proceeding results in an adverse ruling and 
512  such bonds and guaranty are found to be unconstitutional, 
513  invalid, or unenforceable, then the corporation shall no longer 
514  be authorized to use the investment of the earnings accrued and 
515  collected upon the investment of the minimum balance of the 
516  State Transportation Trust Fund to guarantee any bonds. 
517         (6) The proceeds of any bonds of the corporation may not be 
518  used, in any manner, to acquire any building or facility that 
519  will be, during the pendency of the financing, used by, occupied 
520  by, leased to, or paid for by any state, county, or municipal 
521  agency or entity. 
522         (7) Notwithstanding anything to the contrary contained in 
523  this section, the corporation has power in its corporate 
524  capacity, in its discretion, to issue revenue bonds or other 
525  evidences of indebtedness pursuant to this section without any 
526  authorization by a public agency pursuant to s. 163.01(7), to: 
527  finance the undertaking of any project within the state which 
528  promotes renewable energy as defined in s. 377.803 or s. 
529  366.91(2)(d); finance the undertaking of any project within the 
530  state which is a project contemplated or allowed under s. 406 of 
531  the American Recovery and Reinvestment Act of 2009, as may be 
532  supplemented and amended from time to time; and, if permitted by 
533  federal law, to finance property assessed as clean energy 
534  projects within the state. 
535         Section 6. Section 288.9607, Florida Statutes, is amended 
536  to read: 
537         288.9607 Guaranty Program of bond issues.— 
538         (1) The corporation is hereby authorized to approve or 
539  deny, by a majority vote of the membership of the directors, a 
540  guaranty of debt service payments for bonds or other 
541  indebtedness used to finance any capital project that promotes 
542  economic development within the state, including, but not 
543  limited to, those capital projects for which revenue bonds have 
544  been or will be the guaranty of any revenue bonds issued 
545  pursuant to this act, provided that any such guaranty shall not 
546  exceed 5 percent of the total aggregate principal amount of 
547  bonds or other indebtedness relating to any one capital project. 
548  The guaranty may also be of the obligations of the corporation 
549  with respect to any letter of credit, bond insurance, or other 
550  form of credit enhancement provided by any person with respect 
551  to any revenue bonds issued by the corporation pursuant to this 
552  act. 
553         (2) Any applicant for financing from the corporation, 
554  requesting a guaranty of the bonds issued by the corporation 
555  under this act must submit a guaranty application, in a form 
556  acceptable to the corporation, together with supporting 
557  documentation to the corporation as provided in this section. 
558         (3) All applicants that which have entered into a guaranty 
559  agreement with the corporation shall pay a guaranty premium on 
560  such terms and at such rates as the corporation shall determine 
561  prior to the issuance of the guaranty bonds. The corporation may 
562  adopt such guaranty premium structures as it deems appropriate, 
563  including, without limitation, guaranty premiums that which are 
564  payable one time upon the issuance of the guaranty bonds or 
565  annual premiums payable upon the outstanding principal balance 
566  of bonds or other indebtedness that is guaranteed from time to 
567  time. The premium payment may be collected by the corporation 
568  from any the lessee of the project involved, from the applicant, 
569  or from any other payee of any the loan agreement involved. 
570         (4) All applications for a guaranty must acknowledge that 
571  as a condition to the issuance of the guaranty, the corporation 
572  may require that the financing must be secured by a mortgage or 
573  security interest on the property acquired which will have such 
574  priority over other liens on such property as may be required by 
575  the corporation, and that the financing must be guaranteed by 
576  such person or persons with such ownership interest in the 
577  applicant as may be required by the corporation. 
578         (5) Personal financial records, trade secrets, or 
579  proprietary information of applicants delivered to or obtained 
580  by the corporation shall be confidential and exempt from the 
581  provisions of s. 119.07(1). 
582         (6) If the application for a guaranty is approved by the 
583  corporation, the corporation and the applicant shall enter into 
584  a guaranty agreement. In accordance with the provisions of the 
585  guaranty agreement, the corporation guarantees to use the funds 
586  on deposit in its Energy, Technology, and Economic Development 
587  Revenue Bond Guaranty Fund Reserve Account to meet debt service 
588  amortization payments on the bonds or indebtedness as they 
589  become due, in the event and to the extent that the applicant is 
590  unable to meet such payments in accordance with the terms of the 
591  bond indenture when called to do so by the trustee of the 
592  bondholders, or to make similar payments to reimburse any person 
593  which has provided credit enhancement for the bonds and which 
594  has advanced funds to meet such debt service amortization 
595  payments as they become due, provided that such guaranty of the 
596  corporation shall be limited to 5 percent of the total aggregate 
597  principal amount of bonds or other indebtedness relating to any 
598  one capital project. If the applicant defaults on debt service 
599  bond amortization payments, the corporation may use funds on 
600  deposit in the Energy, Technology, and Economic Development 
601  Revenue Bond Guaranty Fund Reserve Account to pay insurance, 
602  maintenance, and other costs which may be required for the 
603  preservation of any capital project or other collateral security 
604  for any bond or indebtedness issued to finance a capital project 
605  for which debt service payments have been guaranteed by the 
606  corporation, issued by the corporation, or to otherwise protect 
607  the reserve account from loss, or to minimize losses to the 
608  reserve account, in each case in such manner as may be deemed 
609  necessary and advisable by the corporation. 
610         (7)(a) The corporation is authorized to enter into an 
611  investment agreement with the Department of Transportation and 
612  the State Board of Administration concerning the investment of 
613  the earnings accrued and collected upon the investment of the 
614  minimum balance of funds required to be maintained in the State 
615  Transportation Trust Fund pursuant to s. 339.135(6)(b). Such 
616  investment shall be limited as follows: 
617         1. Not more than $4 million of the investment earnings 
618  earned on the investment of the minimum balance of the State 
619  Transportation Trust Fund in a fiscal year shall be at risk at 
620  any time on one or more bonds or series of bonds issued by the 
621  corporation. 
622         2. The investment earnings shall not be used to guarantee 
623  any bonds issued after June 30, 1998, and in no event shall the 
624  investment earnings be used to guarantee any bond issued for a 
625  maturity longer than 15 years. 
626         3. The corporation shall pay a reasonable fee, set by the 
627  State Board of Administration, in return for the investment of 
628  such funds. The fee shall not be less than the comparable rate 
629  for similar investments in terms of size and risk. 
630         4. The proceeds of bonds, or portions thereof, issued by 
631  the corporation for which a guaranty has been or will be issued 
632  pursuant to s. 288.9606, s. 288.9608, or this section used to 
633  make loans to any one person, including any related interests, 
634  as defined in s. 658.48, of such person, shall not exceed 20 
635  percent of the principal of all such outstanding bonds of the 
636  corporation issued prior to the first composite bond issue of 
637  the corporation, or December 31, 1995, whichever comes first, 
638  and shall not exceed 15 percent of the principal of all such 
639  outstanding bonds of the corporation issued thereafter, in each 
640  case determined as of the date of issuance of the bonds for 
641  which such determination is being made and taking into account 
642  the principal amount of such bonds to be issued. The provisions 
643  of this subparagraph shall not apply when the total amount of 
644  all such outstanding bonds issued by the corporation is less 
645  than $10 million. For the purpose of calculating the limits 
646  imposed by the provisions of this subparagraph, the first $10 
647  million of bonds issued by the corporation shall be taken into 
648  account. 
649         5. The corporation shall establish a debt service reserve 
650  account which contains not less than 6 months’ debt service 
651  reserves from the proceeds of the sale of any bonds, or portions 
652  thereof, guaranteed by the corporation. 
653         6. The corporation shall establish an account known as the 
654  Revenue Bond Guaranty Reserve Account, the Guaranty Fund. The 
655  corporation shall deposit a sum of money or other cash 
656  equivalents into this fund and maintain a balance of money or 
657  cash equivalents in this fund, from sources other than the 
658  investment of earnings accrued and collected upon the investment 
659  of the minimum balance of funds required to be maintained in the 
660  State Transportation Trust Fund, not less than a sum equal to 1 
661  year of maximum debt service on all outstanding bonds, or 
662  portions thereof, of the corporation for which a guaranty has 
663  been issued pursuant to ss. 288.9606, 288.9607, and 288.9608. In 
664  the event the corporation fails to maintain the balance required 
665  pursuant to this subparagraph for any reason other than a 
666  default on a bond issue of the corporation guaranteed pursuant 
667  to this section or because of the use by the corporation of any 
668  such funds to pay insurance, maintenance, or other costs which 
669  may be required for the preservation of any project or other 
670  collateral security for any bond issued by the corporation, or 
671  to otherwise protect the Revenue Bond Guaranty Reserve Account 
672  from loss while the applicant is in default on amortization 
673  payments, or to minimize losses to the reserve account in each 
674  case in such manner as may be deemed necessary or advisable by 
675  the corporation, the corporation shall immediately notify the 
676  Department of Transportation of such deficiency. Any 
677  supplemental funding authorized by an investment agreement 
678  entered into with the Department of Transportation and the State 
679  Board of Administration concerning the use of investment 
680  earnings of the minimum balance of funds is void unless such 
681  deficiency of funds is cured by the corporation within 90 days 
682  after the corporation has notified the Department of 
683  Transportation of such deficiency. 
684         (b) Unless specifically prohibited in the General 
685  Appropriations Act, the earnings accrued and collected upon the 
686  investment of the minimum balance of funds required to be 
687  maintained in the State Transportation Trust Fund may continue 
688  to be used pursuant to paragraph (a). 
689         (c) The guaranty shall not be a general obligation of the 
690  corporation or of the state, but shall be a special obligation, 
691  which constitutes the investment of a public trust fund. In no 
692  event shall the guaranty constitute an indebtedness of the 
693  corporation, the State of Florida, or any political subdivision 
694  thereof within the meaning of any constitutional or statutory 
695  limitation. Each guaranty agreement shall have plainly stated on 
696  the face thereof that it has been entered into under the 
697  provisions of this act and that it does not constitute an 
698  indebtedness of the corporation, the state, or any political 
699  subdivision thereof within any constitutional or statutory 
700  limitation, and that neither the full faith and credit of the 
701  State of Florida nor any of its revenues is pledged to meet any 
702  of the obligations of the corporation under such guaranty 
703  agreement. Each such agreement shall state that the obligation 
704  of the corporation under the guaranty shall be limited to the 
705  funds available in the Energy, Technology, and Economic 
706  Development Revenue Bond Guaranty Fund Reserve Account as 
707  authorized by this section. 
708 
709  The corporation shall include, as part of the annual report 
710  prepared pursuant to s. 288.9610, a detailed report concerning 
711  the use of guaranteed bond proceeds for loans guaranteed or 
712  issued pursuant to any agreement with the Florida Black Business 
713  Investment Board, including the percentage of such loans 
714  guaranteed or issued and the total volume of such loans 
715  guaranteed or issued. 
716         (8) In the event the corporation does not approve the 
717  application for a guaranty, the applicant shall be notified in 
718  writing of the corporation’s determination that the application 
719  not be approved. 
720         (9) The membership of the corporation is authorized and 
721  directed to conduct such investigation as it may deem necessary 
722  for promulgation of regulations to govern the operation of the 
723  guaranty program authorized by this section. The regulations may 
724  include such other additional provisions, restrictions, and 
725  conditions as the corporation, after its investigation referred 
726  to in this subsection, shall determine to be proper to achieve 
727  the most effective utilization of the guaranty program. This may 
728  include, without limitation, a detailing of the remedies that 
729  must be exhausted by the bondholders, or a trustee acting on 
730  their behalf, or other credit provider prior to calling upon the 
731  corporation to perform under its guaranty agreement and the 
732  subrogation of other rights of the corporation with reference to 
733  the capital project and its operation or the financing in the 
734  event the corporation makes payment pursuant to the applicable 
735  guaranty agreement. The regulations promulgated by the 
736  corporation to govern the operation of the guaranty program may 
737  shall contain specific provisions with respect to the rights of 
738  the corporation to enter, take over, and manage all financed 
739  properties upon default. These regulations shall be submitted by 
740  set forth the respective rights of the corporation to the 
741  Governor’s Energy Office for approval and the bondholders in 
742  regard thereto. 
743         (10) The guaranty program described in this section may be 
744  used by the corporation in conjunction with any federal guaranty 
745  programs described in s. 406 of the American Recovery and 
746  Reinvestment Act of 2009, as may be supplemented and amended 
747  from time to time. All policies and procedures or regulations of 
748  the guaranty program promulgated by the corporation, to the 
749  extent such guaranty program of the corporation will be used in 
750  conjunction with a federal guaranty program described in s. 406 
751  of the American Recovery and Reinvestment Act of 2009, shall be 
752  consistent with s. 406 of the American Recovery and Reinvestment 
753  Act of 2009, as may be supplemented and amended from time to 
754  time. 
755         Section 7. Section 288.9608, Florida Statutes, is amended 
756  to read: 
757         288.9608 Creation and funding of the Energy, Technology, 
758  and Economic Development Guaranty Fund guaranty account.— 
759         (1) The corporation shall establish a debt service reserve 
760  account which contains not less than 6 months’ debt service 
761  reserves from the proceeds of the sale of any bonds guaranteed 
762  by the corporation. Funds in such debt service reserve account 
763  shall be used prior to funds in the Revenue Bond Guaranty 
764  Reserve Account established in subsection (2). The corporation 
765  shall make best efforts to liquidate collateralized property and 
766  draw upon personal guarantees, and shall utilize the Revenue 
767  Bond Guaranty Reserve Account prior to use of supplemental 
768  funding for the Guaranty Reserve Account under the provisions of 
769  subsection (3). 
770         (1)(2)(a) The corporation shall establish an account known 
771  as the Energy, Technology, and Economic Development Revenue Bond 
772  Guaranty Reserve Account, the Guaranty Fund. The corporation is 
773  authorized to shall deposit moneys a sum of money or other cash 
774  equivalents into this fund and maintain a balance in this fund, 
775  from general revenue funds of the state as may be authorized for 
776  such purpose, or any other designated funding sources not 
777  inconsistent with state law sources other than the State 
778  Transportation Trust Fund, not less than a sum equal to 1 year 
779  of maximum debt service on all outstanding bonds, or portions 
780  thereof, of the corporation for which a guaranty has been issued 
781  pursuant to ss. 288.9606, 288.9607, and 288.9608. 
782         (2)(b) If the corporation determines that the moneys in the 
783  guaranty agreement fund are not sufficient to meet the 
784  obligations of the guaranty agreement fund, the corporation is 
785  authorized to use the necessary amount of any available moneys 
786  that it may have which are not needed for, then or in the 
787  foreseeable future, or committed to other authorized functions 
788  and purposes of the corporation. Any such moneys so used may be 
789  reimbursed out of the guaranty agreement fund if and when there 
790  are moneys therein available for the purpose. 
791         (3)(c) The determination of when additional moneys will be 
792  needed for the guaranty agreement fund, the amounts that will be 
793  needed, and the availability or unavailability of other moneys 
794  shall be made solely by the corporation in the exercise of its 
795  discretion. However, supplemental funding for the Guaranty Fund 
796  as described in subsection (3) shall be made in accordance with 
797  the investment agreement of the corporation and the Department 
798  of Transportation and the State Board of Administration. 
799         (3)(a) If the corporation determines that the funds in the 
800  Guaranty Fund will not be sufficient to meet the present or 
801  reasonably projected obligations of the Guaranty Fund, due to a 
802  default on a loan made by the corporation from the proceeds of a 
803  bond issued by the corporation which is guaranteed pursuant to 
804  s. 288.9607(7), no later than 90 days before amortization 
805  payments are due on such bonds, the corporation shall notify the 
806  Secretary of Transportation and the State Board of 
807  Administration of the amount of funds required to meet, as and 
808  when due, all amortization payments for which the Guaranty Fund 
809  is obligated. The Secretary of Transportation shall immediately 
810  notify the Speaker of the House of Representatives, the 
811  President of the Senate, and the chairs of the Senate and House 
812  Committees on Appropriations of the amount of funds required, 
813  and the projected impact on each affected year of the adopted 
814  work program of the Department of Transportation. 
815         (b) Within 30 days of the receipt of notification from the 
816  corporation, the Department of Transportation shall submit a 
817  budget amendment request to the Executive Office of the Governor 
818  pursuant to chapter 216, to increase budget authority to carry 
819  out the purposes of this section. Upon approval of said 
820  amendment, the department shall proceed to amend the adopted 
821  work program, if necessary, in accordance with the amendment. 
822  Within 60 days of the receipt of notification, and subject to 
823  approval of the budget authority, the Secretary of 
824  Transportation shall transfer, subject to the amount available 
825  from the source described in paragraph (c), the amount of funds 
826  requested by the corporation required to meet, as and when due, 
827  all amortization payments for which the Guaranty Fund is 
828  obligated. Any moneys so transferred shall be reimbursed to the 
829  Department of Transportation, with interest at the rate earned 
830  on investment by the State Treasury, from the funds available in 
831  the Guaranty Fund or as otherwise available to the corporation. 
832         (c) Pursuant to s. 288.9607(7), the Secretary of 
833  Transportation and the State Board of Administration may make 
834  available for transfer to the Guaranty Fund, earnings accrued 
835  and collected upon the investment of the minimum balance of 
836  funds required to be maintained in the State Transportation 
837  Trust Fund. However, the earnings accrued and collected upon the 
838  investment of the minimum balance of funds required to be 
839  maintained in the State Transportation Trust Fund which shall be 
840  subject to transfer shall be limited to those earnings accrued 
841  and collected on the investment of the minimum balance of funds 
842  required to be maintained in the State Transportation Trust Fund 
843  for the fiscal year in which the notification is received by the 
844  secretary and fiscal years thereafter. 
845         (4) If the corporation receives supplemental funding for 
846  the Guaranty Fund under the provisions of this section, then any 
847  proceeds received by the corporation with respect to a loan in 
848  default, including proceeds from the sale of collateral for such 
849  loan, enforcement of personal guarantees or other pledges to the 
850  corporation to secure such loan, shall first be applied to the 
851  obligation of the corporation to repay the Department of 
852  Transportation pursuant to this section. Until such repayment is 
853  complete, no new bonds may be guaranteed pursuant to this 
854  section. 
855         (5) Prior to the use of the guaranty provided in this 
856  section, and on an annual basis, the corporation must certify in 
857  writing to the State Board of Administration and the Secretary 
858  of Transportation that it has fully implemented the requirements 
859  of this section and s. 288.9607 and the regulations of the 
860  corporation. 
861         Section 8. Section 288.9609, Florida Statutes, is amended 
862  to read: 
863         288.9609 Bonds as legal investments.—All banks, trust 
864  companies, bankers, savings banks and institutions, building and 
865  loan associations, savings and loan associations, investment 
866  companies, and other persons carrying on a banking and 
867  investment business; all insurance companies, insurance 
868  associations, and other persons carrying on an insurance 
869  business; and all executors, administrators, curators, trustees, 
870  and other fiduciaries may legally invest any sinking funds, 
871  moneys, or other funds belonging to them or within their control 
872  in any bonds or other obligations issued by the corporation 
873  pursuant to an interlocal agreement with a public agency of this 
874  state. Such bonds and obligations shall be authorized security 
875  for all public deposits. It is the purpose of this section to 
876  authorize all persons, political subdivisions, and officers, 
877  public and private, to use any funds owned or controlled by them 
878  for the purchase of any such bonds or other obligations. Nothing 
879  contained in this section with regard to legal investments shall 
880  be construed as relieving any person of any duty of exercising 
881  reasonable care in selecting securities. 
882         Section 9. Section 288.9610, Florida Statutes, is amended 
883  to read: 
884         288.9610 Annual reports of Florida Development Finance 
885  Corporation.—By December 1 of each year, the Florida Development 
886  Finance Corporation shall submit to the Governor, the President 
887  of the Senate, the Speaker of the House of Representatives, the 
888  Senate Minority Leader and, the House Minority Leader, and the 
889  city or county activating the Florida Development Finance 
890  Corporation a complete and detailed report setting forth: 
891         (1) The evaluation required in s. 11.45(3)(j). 
892         (2) The operations and accomplishments of the Florida 
893  Development Finance Corporation, including the number of 
894  businesses assisted by the corporation. 
895         (3) Its assets and liabilities at the end of its most 
896  recent fiscal year, including a description of all of its 
897  outstanding revenue bonds. 
898         Section 10. Subsection (1) of section 366.02, Florida 
899  Statutes, is amended to read: 
900         366.02 Definitions.—As used in this chapter: 
901         (1) “Public utility” means every person, corporation, 
902  partnership, association, or other legal entity and their 
903  lessees, trustees, or receivers supplying electricity or gas 
904  (natural, manufactured, or similar gaseous substance) to or for 
905  the public within this state; but the term “public utility” does 
906  not include either a cooperative now or hereafter organized and 
907  existing under the Rural Electric Cooperative Law of the state; 
908  a municipality or any agency thereof; any dependent or 
909  independent special natural gas district; any natural gas 
910  transmission pipeline company making only sales or 
911  transportation delivery of natural gas at wholesale and to 
912  direct industrial consumers; any entity selling or arranging for 
913  sales of natural gas which neither owns nor operates natural gas 
914  transmission or distribution facilities within the state; or a 
915  person supplying liquefied petroleum gas, in either liquid or 
916  gaseous form, irrespective of the method of distribution or 
917  delivery, or owning or operating facilities beyond the outlet of 
918  a meter through which natural gas is supplied for compression 
919  and delivery into motor vehicle fuel tanks or other 
920  transportation containers, unless such person also supplies 
921  electricity or manufactured or natural gas. In addition, the 
922  term “public utility” does not include a developer of a solar 
923  energy generation facility located on the premises of a host 
924  consumer, other than a multifamily residential building, for 
925  purposes of sale to the host consumer for consumption on the 
926  premises only and limited to contiguous property owned or leased 
927  by the consumer, if the solar energy generation facility has a 
928  gross power rating of no greater than 2 megawatts. 
929         Section 11. Section 366.91, Florida Statutes, is amended to 
930  read: 
931         366.91 Renewable energy.— 
932         (1) The Legislature finds that it is in the public interest 
933  to promote the development of renewable energy resources in this 
934  state. renewable energy resources have the potential to help 
935  diversify fuel types to mitigate meet Florida’s growing 
936  dependency on natural gas for electric production, minimize the 
937  volatility of fuel costs, encourage investment within the state, 
938  preserve and create jobs, improve environmental conditions, 
939  displace and reduce the consumption of fossil fuels in the 
940  generation of electricity, and make Florida a leader in new and 
941  innovative technologies. 
942         (2) The Legislature further finds and declares that: 
943         (a) It is in the public interest to vigorously promote the 
944  production of renewable energy within the state; 
945         (b) There is a current and ongoing need for electricity 
946  generated from renewable energy resources; 
947         (c) Based on analysis of past, current, and future 
948  projections of retail electric rates, there is a high degree of 
949  correlation between retail electric rates of Florida public 
950  utilities and avoided cost; and 
951         (d) This section shall be liberally construed in order to 
952  robustly promote and encourage the production of renewable 
953  energy in Florida. 
954         (3)(2) As used in this section, the term: 
955         (a) “Biomass” means a power source that is comprised of, 
956  but not limited to, combustible residues or gases from forest 
957  products manufacturing, waste, byproducts, or products from 
958  agricultural and orchard crops, waste or coproducts from 
959  livestock and poultry operations, waste or byproducts from food 
960  processing, urban wood waste, municipal solid waste, municipal 
961  liquid waste treatment operations, and landfill gas. 
962         (b) “Customer-owned renewable generation” means any and all 
963  an electric generating system or systems located on a customer’s 
964  premises that is primarily intended to offset part or all of the 
965  customer’s electricity requirements with renewable energy. 
966         (c) “Net metering” means a metering and billing methodology 
967  whereby a renewable energy producer that is a consumer of 
968  electricity at a single location, or at multiple locations 
969  within a single public utility’s service area, and that operates 
970  customer-owned renewable generation, is entitled: customer-owned 
971  renewable generation is allowed to offset the customer’s 
972  electricity consumption on site. 
973         1. To use electricity delivered to such utility to offset 
974  the electric energy and demand based charges, including all 
975  adjustment, recovery, and similar such add-on charges, for which 
976  it is billed by the public utility during each billing period; 
977  and 
978         2. To designate the amount or amounts to be offset at each 
979  metering point. 
980         (d) “Renewable energy” means electrical energy produced 
981  from a method that uses one or more of the following fuels or 
982  energy sources: hydrogen produced from sources other than fossil 
983  fuels, biomass, solar energy, geothermal energy, wind energy, 
984  ocean energy, and hydroelectric power. The term includes the 
985  alternative energy resource, waste heat, from sulfuric acid 
986  manufacturing operations, and electrical energy produced using 
987  pipeline-quality synthetic gas produced from waste petroleum 
988  coke with carbon capture and sequestration. 
989         (4)(a)(3) On or before July 1, 2010 January 1, 2006, each 
990  public utility must continuously offer to and shall a purchase 
991  contract to producers of renewable energy at full avoided cost, 
992  as defined in subsection (7), upon request of a renewable energy 
993  producer that meets one or both of the operating requirements 
994  set forth in subsection (6). The commission may shall establish 
995  by rule requirements relating to the purchase of renewable 
996  energy capacity and energy by public utilities from renewable 
997  energy producers and may adopt rules to administer this section. 
998  The contract shall contain payment provisions for energy and 
999  capacity which are based upon the utility’s full avoided costs, 
1000  as defined in s. 366.051; however, capacity payments are not 
1001  required if, due to the operational characteristics of the 
1002  renewable energy generator or the anticipated peak and off-peak 
1003  availability and capacity factor of the utility’s avoided unit, 
1004  the producer is unlikely to provide any capacity value to the 
1005  utility or the electric grid during the contract term. Each 
1006  contract must provide a contract term of at least 10 years. 
1007  Prudent and reasonable costs associated with the purchase of a 
1008  renewable energy contract shall be recoverable recovered from 
1009  the ratepayers of the purchasing contracting utility, without 
1010  differentiation among customer classes, through the appropriate 
1011  cost-recovery clause mechanism administered by the commission. 
1012         (b) Effective July 1, 2010, a renewable energy producer 
1013  that meets one or both of the operation requirements set forth 
1014  in subsection (6) shall be entitled to sell electric energy to a 
1015  public utility at full avoided cost as set forth in subsection 
1016  (7). 
1017         (5)(4) On or before January 1, 2006, each municipal 
1018  electric utility and rural electric cooperative whose annual 
1019  sales, as of July 1, 1993, to retail customers were greater than 
1020  2,000 gigawatt hours must continuously offer a purchase contract 
1021  to producers of renewable energy containing payment provisions 
1022  for energy and capacity which are based upon the utility’s or 
1023  cooperative’s full avoided costs, as determined by the governing 
1024  body of the municipal utility or cooperative; however, capacity 
1025  payments are not required if, due to the operational 
1026  characteristics of the renewable energy generator or the 
1027  anticipated peak and off-peak availability and capacity factor 
1028  of the utility’s avoided unit, the producer is unlikely to 
1029  provide any capacity value to the utility or the electric grid 
1030  during the contract term. Each contract must provide a contract 
1031  term of at least 10 years. 
1032         (6) Operating requirements: 
1033         (a) A renewable energy producer that generates and delivers 
1034  to the grid a fixed amount of electrical capacity at a rate of 
1035  production, such that the amount of energy produced per 1 
1036  megawatt of fixed capacity is 7,000 megawatt hours or more per 
1037  year shall be entitled to sell such fixed amount of capacity and 
1038  energy to any public utility at full avoided costs. 
1039         (b) A renewable energy producer that generates electric 
1040  energy using waste heat from sulfuric acid manufacturing 
1041  operations, such that the amount of electric energy produced at 
1042  the site per 1 megawatt of system generating capacity is 5,500 
1043  megawatt hours or more per year and that exports less than 50 
1044  percent of the total electric energy produced to the grid, shall 
1045  be entitled to sell any excess energy, up to an amount equal to 
1046  the energy used to serve its own requirements, to any public 
1047  utility at full avoided cost. 
1048         (7) It has been found and determined that 80 percent of the 
1049  weighted average of firm service retail electric rates of each 
1050  public utility, including all adjustment, recovery, and similar 
1051  such add-on charges, directly correlates with each utility’s 
1052  full avoided cost for acquiring energy from renewable energy 
1053  producers that meet the operating requirements of subsection 
1054  (6), and is an administratively efficient, transparent, prudent, 
1055  and preferred methodology for calculating full avoided cost. The 
1056  full avoided cost to which all renewable energy producers are 
1057  entitled is and shall be the mathematical product of 0.80 and 
1058  the weighted average of firm service retail electric rates in 
1059  cents per kilowatt hour, including all adjustment, recovery, and 
1060  similar such add-on charges, of the purchasing utility. 
1061         (8)(5) On or before January 1, 2009, each public utility 
1062  shall develop a standardized interconnection agreement and net 
1063  metering program for all customer-owned renewable generation. 
1064  The commission shall establish requirements relating to the 
1065  expedited interconnection and net metering of customer-owned 
1066  renewable generation by public utilities and may adopt rules to 
1067  administer this section. 
1068         (9)(6) On or before July 1, 2009, each municipal electric 
1069  utility and each rural electric cooperative that sells 
1070  electricity at retail shall develop a standardized 
1071  interconnection agreement and net metering program for customer 
1072  owned renewable generation. Each governing authority shall 
1073  establish requirements relating to the expedited interconnection 
1074  and net metering of customer-owned generation. By April 1 of 
1075  each year, each municipal electric utility and rural electric 
1076  cooperative utility serving retail customers shall file a report 
1077  with the commission detailing customer participation in the 
1078  interconnection and net metering program, including, but not 
1079  limited to, the number and total capacity of interconnected 
1080  generating systems and the total energy net metered in the 
1081  previous year. 
1082         (10)(7) Under the provisions of subsections (8) and (9) (5) 
1083  and (6), when a utility purchases power generated from biogas 
1084  produced by the anaerobic digestion of agricultural waste, 
1085  including food waste or other agricultural byproducts, net 
1086  metering shall be available at a single metering point or as a 
1087  part of conjunctive billing of multiple points for a customer at 
1088  a single location, so long as the provision of such service and 
1089  its associated charges, terms, and other conditions are not 
1090  reasonably projected to result in higher cost electric service 
1091  to the utility’s general body of ratepayers or adversely affect 
1092  the adequacy or reliability of electric service to all 
1093  customers, as determined by the commission for public utilities, 
1094  or as determined by the governing authority of the municipal 
1095  electric utility or rural electric cooperative that serves at 
1096  retail. 
1097         (11)(8) A contracting producer of renewable energy producer 
1098  must pay the actual costs of its interconnection with the 
1099  transmission grid or distribution system. 
1100         (12) Action by the commission pursuant to or associated 
1101  with implementing this section shall not be deemed or construed 
1102  to be an action relating to rates or service of utilities 
1103  providing electric service. 
1104         Section 12. Section 366.92, Florida Statutes, is amended to 
1105  read: 
1106         366.92 Florida renewable energy policy.— 
1107         (1) It is the intent of the Legislature to promote the 
1108  development of renewable energy; protect the economic viability 
1109  of Florida’s existing renewable energy facilities; diversify the 
1110  types of fuel used to generate electricity in Florida; lessen 
1111  Florida’s dependence on natural gas and fuel oil for the 
1112  production of electricity; minimize the volatility of fuel 
1113  costs; encourage investment within the state; improve 
1114  environmental conditions; and, at the same time, minimize the 
1115  costs of power supply to electric utilities and their customers. 
1116         (2) As used in this section, the term: 
1117         (a) “Florida renewable energy resources” means renewable 
1118  energy, as defined in s. 377.803, that is produced in Florida. 
1119         (b) “Provider” means a “utility” as defined in s. 
1120  366.8255(1)(a). 
1121         (c) “Renewable energy” means renewable energy as defined in 
1122  s. 366.91(2)(d). 
1123         (d) “Renewable energy credit” or “REC” means a product that 
1124  represents the unbundled, separable, renewable attribute of 
1125  renewable energy produced in Florida and is equivalent to 1 
1126  megawatt-hour of electricity generated by a source of renewable 
1127  energy located in Florida. 
1128         (e) “Renewable portfolio standard” or “RPS” means the 
1129  minimum percentage of total annual retail electricity sales by a 
1130  provider to consumers in Florida that shall be supplied by 
1131  renewable energy produced in Florida. 
1132         (3) The commission shall adopt rules for a renewable 
1133  portfolio standard requiring each provider to supply renewable 
1134  energy to its customers directly, by procuring, or through 
1135  renewable energy credits. In developing the RPS rule, the 
1136  commission shall consult the Department of Environmental 
1137  Protection and the Florida Energy and Climate Commission. The 
1138  rule shall not be implemented until ratified by the Legislature. 
1139  The commission shall present a draft rule for legislative 
1140  consideration by February 1, 2009. 
1141         (a) In developing the rule, the commission shall evaluate 
1142  the current and forecasted levelized cost in cents per kilowatt 
1143  hour through 2020 and current and forecasted installed capacity 
1144  in kilowatts for each renewable energy generation method through 
1145  2020. 
1146         (b) The commission’s rule: 
1147         1. Shall include methods of managing the cost of compliance 
1148  with the renewable portfolio standard, whether through direct 
1149  supply or procurement of renewable power or through the purchase 
1150  of renewable energy credits. The commission shall have 
1151  rulemaking authority for providing annual cost recovery and 
1152  incentive-based adjustments to authorized rates of return on 
1153  common equity to providers to incentivize renewable energy. 
1154  Notwithstanding s. 366.91(3) and (4), upon the ratification of 
1155  the rules developed pursuant to this subsection, the commission 
1156  may approve projects and power sales agreements with renewable 
1157  power producers and the sale of renewable energy credits needed 
1158  to comply with the renewable portfolio standard. In the event of 
1159  any conflict, this subparagraph shall supersede s. 366.91(3) and 
1160  (4). However, nothing in this section shall alter the obligation 
1161  of each public utility to continuously offer a purchase contract 
1162  to producers of renewable energy. 
1163         2. Shall provide for appropriate compliance measures and 
1164  the conditions under which noncompliance shall be excused due to 
1165  a determination by the commission that the supply of renewable 
1166  energy or renewable energy credits was not adequate to satisfy 
1167  the demand for such energy or that the cost of securing 
1168  renewable energy or renewable energy credits was cost 
1169  prohibitive. 
1170         3. May provide added weight to energy provided by wind and 
1171  solar photovoltaic over other forms of renewable energy, whether 
1172  directly supplied or procured or indirectly obtained through the 
1173  purchase of renewable energy credits. 
1174         4. Shall determine an appropriate period of time for which 
1175  renewable energy credits may be used for purposes of compliance 
1176  with the renewable portfolio standard. 
1177         5. Shall provide for monitoring of compliance with and 
1178  enforcement of the requirements of this section. 
1179         6. Shall ensure that energy credited toward compliance with 
1180  the requirements of this section is not credited toward any 
1181  other purpose. 
1182         7. Shall include procedures to track and account for 
1183  renewable energy credits, including ownership of renewable 
1184  energy credits that are derived from a customer-owned renewable 
1185  energy facility as a result of any action by a customer of an 
1186  electric power supplier that is independent of a program 
1187  sponsored by the electric power supplier. 
1188         8. Shall provide for the conditions and options for the 
1189  repeal or alteration of the rule in the event that new 
1190  provisions of federal law supplant or conflict with the rule. 
1191         (c) Beginning on April 1 of the year following final 
1192  adoption of the commission’s renewable portfolio standard rule, 
1193  each provider shall submit a report to the commission describing 
1194  the steps that have been taken in the previous year and the 
1195  steps that will be taken in the future to add renewable energy 
1196  to the provider’s energy supply portfolio. The report shall 
1197  state whether the provider was in compliance with the renewable 
1198  portfolio standard during the previous year and how it will 
1199  comply with the renewable portfolio standard in the upcoming 
1200  year. 
1201         (3)(a)(4) In order to demonstrate the feasibility and 
1202  viability of clean energy systems, The commission shall provide 
1203  for full cost recovery under the environmental cost-recovery 
1204  clause of all reasonable and prudent costs incurred by a 
1205  provider for renewable energy projects that result in a net 
1206  decrease of are zero greenhouse gas emitted in this state 
1207  emitting at the point of generation, up to a total of 110 
1208  megawatts statewide, and for which the provider has secured 
1209  necessary land, zoning permits, and transmission rights within 
1210  the state. 
1211         (b) Such costs shall be deemed reasonable and prudent for 
1212  purposes of cost recovery so long as the provider has obtained 
1213  approval for the renewable energy project pursuant to s. 366.921 
1214  used reasonable and customary industry practices in the design, 
1215  procurement, and construction of the project in a cost-effective 
1216  manner appropriate to the location of the facility. The provider 
1217  shall report to the commission as part of the cost-recovery 
1218  proceedings the construction costs, in-service costs, operating 
1219  and maintenance costs, hourly energy production of the renewable 
1220  energy project, and any other information deemed relevant by the 
1221  commission. Any provider constructing a clean energy facility 
1222  pursuant to this section shall file for cost recovery no later 
1223  than July 1, 2009. 
1224         (4) Pursuant to the approval process under s. 366.921, the 
1225  commission shall approve up to a total of 700 megawatts of 
1226  renewable energy projects for the years 2010, 2011, and 2012, 
1227  with up to a total of 300 megawatts approved in 2010 and up to 
1228  an additional 200 megawatts approved annually in 2011 and 2012, 
1229  as part of new renewable energy projects and an additional 35 
1230  megawatts, with up to 5 megawatts for hydroelectric application 
1231  for 2010, and up to 10 megawatts annually for 2010, 2011, and 
1232  2012, for rooftop or pole-mounted solar energy applications in 
1233  addition to megawatts attributable to renewable energy projects 
1234  approved by the commission for cost recovery before January 1, 
1235  2010. Any megawatts for renewable energy projects designated for 
1236  approval for a specific year that remain available at the end of 
1237  the calendar year shall be carried forward to the succeeding 
1238  year. Notwithstanding s. 403.519, the Legislature finds that 
1239  there is need for these renewable energy resources. This 
1240  legislative finding shall serve as the need determination 
1241  required under s. 403.519 and as the commission’s agency report 
1242  under s. 403.507(4)(a). 
1243         (5) Of the 700 megawatts of renewable energy projects set 
1244  forth in subsection (4), the commission shall provide for full 
1245  cost recovery under the environmental cost-recovery clause for 
1246  any renewable energy purchased from a qualifying facility and 
1247  produced from small-scale renewable energy generation in size 
1248  from 1 kilowatt to 2 megawatts of up to 75 megawatts statewide 
1249  for the year 2011, 50 megawatts for the year 2012, and 50 
1250  megawatts for the year 2013. Such costs shall be deemed 
1251  reasonable and prudent for purposes of cost recovery if the 
1252  commission adopts rules establishing reasonable costs associated 
1253  with harvesting and generating various renewable energy fuel 
1254  types and provides a suitable return for producers. The rules 
1255  must establish differentiated rates for purchase of various 
1256  renewable energy fuel types based on the fuel type technology. A 
1257  provider or producer of renewable energy fuel that is a 
1258  regulated utility or its unregulated affiliates is not eligible 
1259  to participate in the program as provided in this subsection. An 
1260  eligible qualifying facility must be located within the 
1261  territory served by a participating electric utility. The 
1262  commission shall issue a qualifying facility certificate of 
1263  eligibility within 30 days after receipt of an application for a 
1264  producer’s small scale biomass, solar, or wind energy facility, 
1265  and if accompanied by proof that the applicant holds a current 
1266  qualifying facility federal designation and an application fee 
1267  not to exceed $250. 
1268         (6)(a) A developer of solar energy generation may locate a 
1269  solar energy generation facility on the premises of a host 
1270  consumer, other than a multifamily residential building, for 
1271  purposes of sale to the consumer for consumption on the premises 
1272  only, if the solar energy generation facility has a gross power 
1273  rating of no greater than 2 megawatts. For purposes of this 
1274  subsection, the host consumer’s premises shall be limited to 
1275  contiguous property owned or leased by the consumer, without 
1276  regard to interruptions in contiguity caused by easements, 
1277  public thoroughfares, transportation rights-of-way, or utility 
1278  rights-of-way. 
1279         (b) The commission shall adopt rules to administer this 
1280  subsection. In adopting such rules, the commission shall 
1281  establish, at a minimum: 
1282         1. Requirements related to interconnection and metering; 
1283         2. A mechanism for setting rates for any service provided 
1284  to the consumer by the utility if such service is required by 
1285  the consumer, which rates shall ensure that the utility’s 
1286  general body of ratepayers do not subsidize any redundant 
1287  utility generating capacity necessary to serve the consumer; and 
1288         3. Requirements for notice to the commission of the size 
1289  and location of each renewable energy generation facility 
1290  planned under this subsection, the identity and historical and 
1291  projected load characteristics of each host consumer, and any 
1292  other information deemed necessary by the commission to satisfy 
1293  its obligations under s. 364.04(5). 
1294         (c) Beginning January 1, 2011, and no less often than every 
1295  6 months thereafter, the commission shall provide a report to 
1296  the Legislature of the activity under this subsection, which 
1297  shall address the impacts of such activity on the electric power 
1298  grid of the state, individual utility systems, and each 
1299  utility’s general body of ratepayers, and shall include 
1300  recommendations concerning implementation of this program. 
1301         (7) In order to further promote renewable energy, need 
1302  determination pursuant to s. 403.519 is not required if a 
1303  renewable energy generating facility: 
1304         (a) Had a pending site certification application seeking 
1305  approval for up to 100 net megawatts of renewable energy 
1306  projects on or before December 31, 2009; or 
1307         (b) Files a site certification application before January 
1308  1, 2011, for an expansion of an existing renewable energy 
1309  electric generating facility, subject to a total of up to 200 
1310  net megawatts statewide, which is owned by a local governmental 
1311  entity. 
1312         (8)(5) Each municipal electric utility and rural electric 
1313  cooperative shall develop standards for the promotion, 
1314  encouragement, and expansion of the use of renewable energy 
1315  resources and energy conservation and efficiency measures. On or 
1316  before April 1, 2009, and annually thereafter, each municipal 
1317  electric utility and electric cooperative shall submit to the 
1318  commission a report that identifies such standards. 
1319         (9)(6) Nothing in This section does not shall be construed 
1320  to impede or impair terms and conditions of existing contracts. 
1321         (10) Revenues derived from any renewable energy credit, 
1322  carbon credit, or other mechanism that attributes value to the 
1323  production of renewable energy, either existing or hereafter 
1324  devised, received by a provider by virtue of the production or 
1325  purchase of renewable energy for which cost recovery is approved 
1326  under this subsection, shall be shared with the provider’s 
1327  ratepayers such that the ratepayers are credited no less than 75 
1328  percent of such revenues. 
1329         (11)(7) The commission may adopt rules to administer and 
1330  implement the provisions of this section. 
1331         Section 13. Section 366.921, Florida Statutes, is created 
1332  to read: 
1333         366.921 Renewable energy; approval process.— 
1334         (1) Providers of renewable energy under s. 366.92(4) must 
1335  acquire commission approval before the construction, licensing, 
1336  and operation of a facility producing such resources or the 
1337  purchase of capacity or energy from a facility producing such 
1338  resources. 
1339         (2) Upon the filing by a provider of a petition for 
1340  approval of a facility, the commission shall schedule a formal 
1341  administrative hearing within 10 days after the filing of the 
1342  petition and vote on the petition within 90 days after such 
1343  filing. 
1344         (3)(a) In determining whether to approve the petition, the 
1345  commission shall consider whether the: 
1346         1. Proposal for the facility requires the use of reasonable 
1347  and customary industry practices in the design, engineering, 
1348  procurement, and construction of the project in a cost-effective 
1349  manner appropriate to the proposed technology and location of 
1350  the facility. 
1351         2. Entity, including a provider, which would engineer, 
1352  design, and construct the proposed facility has the requisite 
1353  technical and financial qualifications, expertise, and 
1354  capability. 
1355         3. Entity, including a provider, which would operate the 
1356  proposed facility has the requisite technical qualifications, 
1357  expertise, and capability. 
1358         4. Provider has submitted the project for competitive bid 
1359  to ensure that it is the most cost-effective alternative that 
1360  meets the criteria of this section and that the projected costs 
1361  are reasonable and prudent for this type of project. 
1362         5. Proposal includes mechanisms to keep costs from 
1363  increasing above the projected amount. 
1364         6. Any new or converted generating facility that uses woody 
1365  biomass as its fuel stock shall ensure that a minimum of 85 
1366  percent of such fuel stock is supplied from urban wood waste, 
1367  logging residuals, and short-rotation energy crops. The 
1368  commission may not approve costs for recovery without ensuring 
1369  that this fuel stock limit is met. 
1370         (b) As used in this subsection, the term: 
1371         1. “Short-rotation energy crops” means plant species whose 
1372  rotation from planting to harvest is 8 years or less and 
1373  generally include eucalyptus, poplar, energy cane, elephant 
1374  grass, switch grass, or other fast-growing plants. 
1375         2. “Woody biomass” means woody material and wood residues 
1376  of all types. 
1377         (4) The commission’s final order approving a facility shall 
1378  include express authorization for annual cost recovery pursuant 
1379  to ss. 366.8255 and 366.92 of the costs determined under this 
1380  section. However, under no circumstances may the total costs of 
1381  all projects approved under this section for any provider result 
1382  in a retail price increase in excess of an amount equal to $1 
1383  per 1,000 kilowatt hours. 
1384         Section 14. Subsection (14) of section 403.503, Florida 
1385  Statutes, is amended to read: 
1386         403.503 Definitions relating to Florida Electrical Power 
1387  Plant Siting Act.—As used in this act: 
1388         (14) “Electrical power plant” means, for the purpose of 
1389  certification, any steam or solar electrical generating facility 
1390  using any process or fuel, including nuclear materials, except 
1391  that this term does not include any steam or solar electrical 
1392  generating facility of less than 75 megawatts in capacity or any 
1393  solar electrical or hydroelectric generating facility of any 
1394  sized capacity unless the applicant for such a facility elects 
1395  to apply for certification under this act. This term also 
1396  includes the site; all associated facilities that will be owned 
1397  by the applicant that are physically connected to the site; all 
1398  associated facilities that are indirectly connected to the site 
1399  by other proposed associated facilities that will be owned by 
1400  the applicant; and associated transmission lines that will be 
1401  owned by the applicant which connect the electrical power plant 
1402  to an existing transmission network or rights-of-way to which 
1403  the applicant intends to connect. At the applicant’s option, 
1404  this term may include any offsite associated facilities that 
1405  will not be owned by the applicant; offsite associated 
1406  facilities that are owned by the applicant but that are not 
1407  directly connected to the site; any proposed terminal or 
1408  intermediate substations or substation expansions connected to 
1409  the associated transmission line; or new transmission lines, 
1410  upgrades, or improvements of an existing transmission line on 
1411  any portion of the applicant’s electrical transmission system 
1412  necessary to support the generation injected into the system 
1413  from the proposed electrical power plant. 
1414         Section 15. Any competitively procured purchased power 
1415  agreement for solar power which is voluntarily executed by an 
1416  investor-owned utility on or before March 1, 2009, shall be 
1417  presumed prudently incurred and the costs exceeding the 
1418  utility’s full avoided costs for the purchased power shall be 
1419  recoverable through the environmental cost-recovery clause if: 
1420         (1) A petition for approval of the purchased power 
1421  agreement was filed with the Public Service Commission on or 
1422  before April 1, 2009; 
1423         (2) The solar energy provider meets all the requirements of 
1424  the Federal Energy Regulatory Commission and applicable utility 
1425  requirements for interconnection with the public utility 
1426  transmission system; 
1427         (3) The solar generating facility is located in Florida; 
1428  and 
1429         (4) The investor-owned utility is entitled to all 
1430  environmental attributes associated with the solar energy 
1431  generation. 
1432 
1433  The commission shall immediately consider and approve such 
1434  agreements. 
1435         Section 16. This act shall take effect upon becoming a law.