Florida Incentives and Laws

Last Updated June 2009

Florida is the home of the Space Coast (www.clean-cities.org) and the Gold Coast (www.sfrpc.com/fgcccc.htm) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuels Production Incentive

The Innovation Incentive Program was created within the Florida Office of Tourism, Trade, and Economic Development to provide resources for business projects that allow the state to effectively compete for high-value research and development, including alternative and renewable energy projects. To qualify, an alternative and renewable energy project must involve collaboration with an institution of higher education; provide the state a minimum full return on investment within a 20-year period; include matching funds provided by the applicant or other available sources; and be located in the state of Florida. Additional criteria may apply. For the purposes of this incentive, alternative and renewable energy means electrical, mechanical, or thermal energy produced from a method that uses one or more of the following energy sources: ethanol, cellulosic ethanol, biobutanol, biodiesel, biomass, biogas, hydrogen fuel cells, ocean energy, hydrogen, solar, hydro, wind, or geothermal. Incentive awards are subject to state funding availability. This program has not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 288.1089)

Renewable Energy Grants

The Renewable Energy and Energy-Efficient Technologies Grants Program and Farm to Fuel Grants Program provide matching grants for demonstration, commercialization, research, and development projects related to renewable energy technologies or bioenergy. Incentive awards are subject to state funding availability. These programs have not been funded for 2009; however, federal funding may be available through the Florida Energy and Climate Commission to support selected state energy grant programs. (Reference Florida Statutes 377.804 and 570.957)

Hydrogen and Biofuels Tax Exemption

Through July 1, 2010, the sale or use of the following is exempt from Florida state sales, rental, use, consumption, distribution, and storage tax: 1) hydrogen powered vehicles and related materials, and hydrogen fueling stations, up to a maximum of $2 million in taxes per fiscal year in aggregate; 2) materials used in the distribution of biodiesel (B10-B100) and ethanol (E10-E100), including fueling infrastructure, transportation, and storage, up to a maximum of $1 million in taxes per fiscal year for all taxpayers. Gasoline fueling station dispenser retrofits for ethanol (E10-E100) distribution also qualify for this exemption. (Reference Florida Statutes 212.08)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

Hydrogen and Biofuels Investment Tax Credit

An income tax credit is available for costs incurred between July 1, 2006, and June 30, 2010, for the following: 1) 75% of all capital, operation and maintenance, and research and development costs incurred in connection with an investment in hydrogen-powered vehicles and hydrogen vehicle fueling stations in the state, up to a maximum of $3 million per fiscal year for all taxpayers; and 2) 75% of all capital operation and maintenance, and research and development costs incurred in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100) and ethanol (E10-E100) in the state, up to a maximum of $6.5 million per fiscal year for all taxpayers. This includes the costs of constructing, installing, and equipping such technologies; gasoline fueling station dispenser retrofits for ethanol (E10-E100) distribution also qualify.Credits may be used in tax years through December 31, 2010. If the credit is not fully used in any one tax year because of insufficient tax liability on the part of the corporation, the unused amount may be carried forward through December 31, 2012. Any entity that is allowed the investment tax credit may transfer the credit, in whole or in part, to any taxpayer by written agreement without transferring ownership interest in the qualified property.

(Reference Florida Statutes 220.192)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

High Occupancy Vehicle (HOV) Lane Exemption

Inherently Low Emission Vehicles (ILEV) and hybrid electric vehicles (HEV) that are certified and labeled in accordance with federal regulations may be driven in HOV lanes at any time, regardless of the number of passengers in the vehicle. All eligible ILEVs and HEVs must comply with the minimum fuel economy standards set forth in Title 23 of the U.S. Code, section 166(f)(3)(B). The vehicle is required to display a decal issued by the Florida Division of Motor Vehicles and be renewed annually. Special fees may apply. Vehicles with decals may use any HOV lane designated as a HOV toll lane without requiring payment of the toll. An HEV is defined as a motor vehicle that draws propulsion energy from onboard sources of stored energy comprised of both an internal combustion engine using combustible fuel and a rechargeable energy storage system, and meets or exceeds the qualifying California standards for a Low Emission Vehicle. (Reference Florida Statutes 316.0741)

Point of Contact

Florida Department of Highway Safety and Motor Vehicles
Phone (850) 617-9000
http://www.flhsmv.gov/html/titlinf.html

State Laws and Regulations

Alternative Fuel Economic Development

In order to stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers. This includes facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. (Reference House Bill 7053, 2009, and Florida Statutes 163.3177)

Low Emission Vehicle (LEV) Standards

The Florida LEV Program requires that all new passenger vehicles sold and registered in the state meet California emission and compliance requirements, as set forth in Title 13 of the California Code of Regulations. Two years after the U.S. Environmental Protection Agency grants a waiver with regard to California's greenhouse gas emissions standards, these requirements will also apply to any subsequent model year.(Reference Florida Administrative Code 62-285.400)

Ethanol Blend Mandate

Beginning December 31, 2010, all gasoline sold or offered for sale in the state by a terminal supplier, importer, blender, or wholesaler must contain 9-10% ethanol by volume (E10). The fuel mandate does not apply to fuel used in aircrafts or watercrafts, fuel sold to a blender, or fuel sold for use in collector vehicles, off-road vehicles, motorcycles, or small engines. If a terminal supplier, importer, blender, or wholesaler is unable to obtain ethanol fuel or E10 at the same or lower price as unblended gasoline, then the covered entity may apply for a waiver. (Reference Florida Statutes 526.201-526.207)

Fuel-Efficient Vehicle Acquisition and Alternative Fuel Use Requirements

When procuring new vehicles under a state purchasing plan, all state agency, state university, community college, and local government fleets must select the vehicle with the greatest fuel efficiency available for a given use class. Exceptions may be made for emergency responder vehicles when documentation is provided. In addition, all state agencies must use ethanol and biodiesel blended fuels when available. State agencies administering central fueling operations for state-owned vehicles must procure ethanol and biodiesel fuels to use in their vehicle fleet to the greatest extent possible. (Reference Florida Statutes 286.29)

Biofuels Promotion

The Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), is required to conduct an analysis of fuel additives and biofuels use by the DOT through its central fueling facilities. The DMS is required to encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report such information to the DMS. (Reference Florida Statutes 287.16)

Provision for Renewable Fuels Investment

In order to create jobs and improve the state's general infrastructure, the Florida State Board of Administration may identify and invest up to 1.5% of the net assets of the system trust fund in technology and growth investments of businesses operating in Florida, including biofuels, renewable energy, and other related applications. The State Board of Administration may offer opportunities to small, state-based investment management firms to facilitate their development and growth. (Reference Senate Bill 215.47)

Idle Reduction Requirement

Beginning December 15, 2008, idling of any heavy-duty diesel vehicle with a gross vehicle weight rating of 8,500 pounds or more for more than five consecutive minutes is prohibited. Exemptions apply in the following circumstances: traffic conditions; emergency or law enforcement purposes; verification that a vehicle is safe to operate; power work-related operations; bus passenger comfort; or prevention of safety or health emergencies. Until September 30, 2013, exemptions also apply for sleeping or resting in a sleeper berth. (Reference Florida Administrative Code 62-285.420)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle, including a neighborhood electric vehicle, is defined as any four-wheeled electric vehicle capable of achieving a top speed between 20 and 25 miles per hour. Low-speed vehicles must comply with the safety standards in Title 49, Code of Federal Regulations, sections 571.500 and 316.2122 and be licensed as required under state guidelines. Use of low-speed vehicles by seasonal delivery personnel is restricted to certain yearly timeframes. (Reference House Bill 405, 2009, Senate Bill 1100, 2009, and Florida Statutes 316.2126, 320.01(42), and 320.0847)

State Energy and Climate Commission

The Florida Energy and Climate Commission (FECC) was created through the state's 2008 comprehensive energy legislation, which aims to reduce greenhouse gas emissions and encourage investment in alternative and renewable energy technologies. The FECC's responsibilities include administering financial incentive programs, completing annual assessments of Florida's Energy and Climate Change Action Plan, and providing recommendations to the Governor and the Legislature on energy and climate change policies. The FECC also works cooperatively with other state entities to develop state energy and climate change policies and programs. (Reference Florida Statutes 377.6015)

Point of Contact

Kelley Smith
Chief Analyst and Grant Manager
Florida Energy and Climate Commission
Phone (850) 487-4644
Fax (850) 922-9701
kelley.smith@eog.myflorida.com
http://myfloridaclimate.com/climate_quick_links/florida_energy_climate_commission

Alternative Fuels Study

The Florida Energy and Climate Commission (FECC) is required to conduct a study to evaluate and recommend lifecycle greenhouse gas (GHG) emissions associated with all renewable fuels including biodiesel, renewable diesel, biobutanol, and ethanol derived from any source. The FECC must also evaluate and recommend that all renewable fuels introduced into state commerce reduce lifecycle GHG emissions by an average percentage. The FECC may also evaluate and recommend the benefits associated with the creation of banking, transfer, and sale of GHG emissions credits among fuel refiners, blenders, and importers. The FECC must submit specific recommendations to the state legislature no later than December 31, 2010. (Reference Florida Statutes 526.207)

Alternative Fuels Tax

A person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles in lieu of paying the excise tax on gasoline. Fueling stations are not allowed to fuel an AFV that does not display the proper decal. State and local government AFV fleets are exempt from paying the decal fee. In addition to the state alternative fuel fee imposed by this section, a person fueling a vehicle from their own facility is required to pay a local alternative fuel fee in lieu of each cent of excise tax levied by a county. (Reference Florida Statutes 206.877)

Alternative Fuel License

An individual who wishes to be a wholesale distributor of an alternative fuel must first obtain a license from the Florida Department of Revenue. (Reference Florida Statutes 206.89)

Electric Vehicle (EV) Surcharge Exemption

EVs are protected from insurance surcharges based on factors such as new technology, passenger payload, weight-to-horsepower ratio, and the types of material used to manufacture the vehicle, unless the Florida Office of Insurance Regulation receives actuarial data that determines the surcharges are justified. (Reference Florida Statutes 627.06535)

Ethanol Production Credit

County governments are eligible to receive waste reduction credits for the use of yard clippings, clean wood waste, or paper waste as feedstock for the production of clean-burning fuels such as ethanol. (Reference Florida Statutes 403.706)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Florida.

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Bill Young Clean Cities Coordinator	Florida Space Coast Clean Cities Coalition	Phone:(321) 638-1443 Fax:(321) 638-1010
Larry Allen Clean Cities Coordinator	Florida Gold Coast Clean Cities Coalition	Phone:(954) 985-4416 Fax:(954) 985-4417
Steven Richardson Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(304) 285-4185 Fax:(304) 285-4777
	Florida Department of Highway Safety and Motor Vehicles	Phone:(850) 617-9000 Fax:
Kelley Smith Chief Analyst and Grant Manager	Florida Energy and Climate Commission	Phone:(850) 487-4644 Fax:(850) 922-9701
Dale Aspy Environmental Engineer, Region 4	U.S. Environmental Protection Agency	Phone:(404) 562-9041 Fax:(404) 562-9019