Florida Energy Council

Developing Resources to Meet Florida’s Future Energy Needs
Council Lobbyist: Jim Rathbun 

Recently, we have watched oil vacillate around the $100 per barrel milestone, and wholesale natural gas prices have more than tripled over the last five years, resulting in the highest natural gas prices of any industrialized country in the world.

Increasing energy prices have refocused our nation’s attention on energy policy, and the decisions the Florida Legislature and the U.S. Congress will make about the direction of our energy future will have an impact on the cost of operating businesses in our state and on the overall health of Florida’s economy. Every business in the state is affected by higher energy costs, which increases their prices while also reducing customers’ purchasing power.

We have successfully faced high energy prices in the past; however, previous energy price increases were predicated on supply disruptions, generally from state-owned nationalized petroleum companies that participated in or cooperated with OPEC. Recent price increases, however, have been a result of pressure on the demand-side, particularly from emerging economies such as China and India, which has led not only to the continued increases in the cost of energy but also to the volatility we have seen in the energy markets.

These emerging economies will continue to grow and continue to increase their demand for energy. So, to meet future world demand for energy, we must explore all energy resources, including more nuclear power plants and alternatives such as ethanol, hydrogen, geothermal, solar, wind and other renewable sources of energy.

But we also are realistic in understanding that alternative forms of energy are going to remain a small percentage of the energy mix for the near future. Therefore, we also have to re-examine domestic supplies of traditional energy resources, such as natural gas in the Eastern Gulf of Mexico and potential reserves in the Artic National Wildlife Region (ANWR).

At the same time, this evolving, complex energy picture has been further complicated with the growing concern about climate change, which has already resulted in the removal of clean-burning coal plants from Florida’s options to meet future energy demand.

Given the breadth and scope of Florida’s energy needs, and the importance energy plays in keeping Florida’s economy healthy and vibrant, AIF created the Florida Energy Council (FEC) in 2006 to help drive energy policy initiatives in both Tallahassee and Washington, DC. Members include producers, suppliers, storage facilities, marketers, retailers, wholesalers and users working together to promote policies that will ensure continued availability of adequate, reasonably priced energy to meet the growing needs of Florida’s population and business sectors.

This is an incredibly active period for energy initiatives. So far, executive and legislative leadership have submitted approximately 100 recommendations on development of energy resources as well as climate change initiatives to reduce greenhouse gases, beginning the dialog on what will undoubtedly be the arduous and lengthy task of setting Florida’s future policies. Although laudable, some of the goals and targets outlined thus far have the potential to drive up the cost of energy for Florida’s businesses and consumers. This is further complicated if Florida undergoes these efforts unilaterally and without the buy-in of our neighboring states.

AIF believes any recommendations considered in the formation of Florida’s energy policy should allow for reasonable implementation, should support efficiencies and should ensure that undue mandates and costs are not placed on Florida’s businesses and consumers, thereby creating a unilateral economic disparity. Further, Florida should insure that every effort is made to undertake a balanced approach that avoids unrealistic requirements on energy producers and suppliers.

FEC Issues

• Oppose efforts to restructure the state governance for developing Florida’s energy policies and programs by establishing a costly, duplicitous, third clearinghouse within the Department of Environmental Protection to oversee implementation of energy policies across the state (Florida already has a Public Service Commission as well as the Florida Energy Office)
• Support increased incentives for energy efficiency and conservation, such as sales tax holidays for purchases of energy efficient appliances, establishment of green building standards, and promoting energy conservation
• Support funding for renewable energy education, research and development programs to enhance basic research at our universities
• Support funding to help get today’s technology off the drawing board, such as the “Farm to Fuel” initiative and the “Farm to Fuel” Grant Program, to help Florida’s agricultural industry provide the necessary stock for creating energy in the form of ethanol and biomass
• Promote AIF initiative for an “innovation fund” concept that would provide companies access to start-up funds or low interest loans so that they can bring their products to the market, with acceptance tied to profit-sharing plans so the state benefits to some degree for its initial investment
• Support broad definitions for renewable energy, such as those provided by the U.S. EPA, rather than specific to particular products, to expand the interest in new energy technologies
• Support other efforts to strengthen Florida’s energy supply and delivery infrastructure

Other issues under consideration by executive and legislative leadership include:

• Responding to the challenges of global climate change
• Greenhouse gas emission reduction strategies
• Market-based regulatory mechanisms (cap and trade programs)
• Emission reporting and registry, and adoption of maximum emission levels for electric utilities
• Reducing emissions from motor vehicles via unsustainable goals, such as the creation of draconian vehicle idling rules and adoption of California’s vehicle emission standards
• Reducing emissions in Florida in conjunction with, or independent of, regional, national, or international agreements