Florida Laws and Incentives for Ethanol
The list below contains summaries of all Florida laws and incentives related to Ethanol.
State Incentives
Biofuels Investment Tax Credit
An income tax credit is available for 75% of all capital operation, maintenance, and research and development costs incurred in connection with an investment in the production, storage, and distribution of biodiesel (B10-B100), ethanol (E10-E100), or other renewable fuel in the state, up to $1 million annually per taxpayer and $10 million annually for all taxpayers combined. This includes the costs of constructing, installing, and equipping such technologies; gasoline fueling station dispenser retrofits for B10-B100, E10-E100, or other renewable fuel distribution also qualify. Eligible costs must be incurred between July 1, 2012, and June 30, 2016. Renewable fuel is defined as a fuel produced from biomass that is used to replace or reduce conventional fuel use. If the credit is not fully used in any one tax year because of insufficient tax liability, the unused amount may be carried forward through December 31, 2018. Beginning January 1, 2014, 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 House Bill 7117, 2012, and Florida Statutes 220.192)
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. As of June 2012, these programs have not been funded for 2012. (Reference Florida Statutes 377.804 and 570.954)
Ethanol Production Credit
County governments are eligible to receive waste reduction credits for using 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)
Laws and Regulations
Alternative Fuel Economic Development
To stimulate local economic development, landowners may apply to amend the local government comprehensive plan to expand existing uses of rural agricultural industrial centers to include facilities that prepare biomass materials that can be used for the production of fuel, renewable energy, bioenergy, or alternative fuel. In addition, permitting agencies may expedite applications and local comprehensive plan amendments submitted for projects resulting in the production of biofuels or construction of a biofuel processing facility. (Reference Florida Statutes 163.3177 and 403.973)
Alternative Fuel Blend Mandate
All gasoline sold or offered for sale by a terminal supplier, importer, blender, or wholesaler in Florida must contain 9-10% ethanol or other alternative fuel by volume. For the purpose of this requirement, alternative fuel is defined as a fuel produced from biomass. 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 alternative fuel at the same or lower price as unblended gasoline, then the covered entity may apply for a waiver. (Reference House Bill 503, 2012, and 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 Florida state agency, state university, community college, and local government fleets must select the vehicles with the greatest fuel efficiency available for a given use class. Exceptions may be made for emergency responder vehicles if these entities provide documentation. 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 purchase ethanol and biodiesel fuels to use in their vehicle fleet as much as possible. (Reference Florida Statutes 286.29)
Biofuels Promotion
The Florida Department of Management Services (DMS), in coordination with the Florida Department of Transportation (DOT), must conduct an analysis of fuel additives and biofuels the DOT uses through its central fueling facilities. The DMS must also encourage other state government entities to analyze transportation fuel usage, including the types and percentages of fuels consumed, and report this information to the DMS. (Reference Florida Statutes 287.16)
Provision for Renewable Fuels Investment
To create jobs and improve the state's general infrastructure, the Florida State Board of Administration may 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 businesses related to biofuels, renewable energy, and other related applications. (Reference Florida Statutes 215.47)
Alternative Fuels Tax
A person operating an alternative fuel vehicle (AFV) must purchase an annual decal from the Florida Department of Motor Vehicles to be exempt from the excise tax on gasoline. Fueling stations may not fuel a vehicle with propane or compressed natural gas 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, a person fueling a vehicle from their own facility must pay a local alternative fuel fee instead of the excise tax a county levies. (Reference Florida Statutes 206.877)
Alternative Fuel License
An individual who wishes to be a wholesale distributor of an alternative fuel must obtain a license from the Florida Department of Revenue. (Reference Florida Statutes 206.89)