From March 13, 2008

Energy

The Senate Environmental Preservation & Conservation Committee again considered the Senate’s omnibus energy package, SB 1544 by Senator Burt Saunders (R-Naples).  Last week, the Committee discussed the main provisions of the bill, which include a number of changes to the State’s energy policy.  SB 1544 encompasses broad changes that impact state government, businesses, and consumers.  The bulk of the items presently in the bill originate from the executive orders unveiled by Governor Crist last year.  Some of the more controversial items in the bill include the development of statewide greenhouse emission standards, vehicle idling rules, building efficiency standards, renewable fuels standards that call for increased usage of ethanol, and the establishment of a renewable portfolio standard that requires utilities to generate a specified percentage of their electric power from renewable energy resources.  Another contentious issue included in this year’s energy packager revolves around discussion regarding a new energy policy governance structure.  Chairman Saunders informed committee members that he was not ready to have that debate just yet. 

Department of Environmental Protection (DEP) Secretary Mike Sole was once again on hand to answer any questions from members of the Committee as they considered a number of amendments to the bill.  A majority of the amendments considered this morning were presented by Senator Lee Constantine (R-Altamonte Springs).  Although not a member of the Committee, Senator Constantine was allowed by Chairman Saunders to present each of his amendments.  At the outset, Senator Constantine shared with the Committee that his amendments were recommendations from the Florida Energy Commission, a group that was established in 2006 by the Florida Legislature.

Several of the amendments offered by Senator Constantine attempted to establish a common set of definitions throughout the complex bill.  This will be one of the most difficult challenges with the bill because important terms such as “renewable energy” are defined differently throughout different sections of the bill.  In addition, there is the risk of creating “winners” and “losers” if definitions are not crafted as broadly as possible.  This was evident at the meeting today when representatives for Smurfit Stone, which owns a number of paper mills in north Florida, objected to the definition of “woody biomass” because under the current definition trees and other forests byproducts would qualify for state subsidies.  These products can be used as a renewable energy source.  Representatives from Smurfit Stone were fearful that they would not be able to compete against state subsidies for the same products.

In the end, a number of Senator Constantine’s amendments were withdrawn in deference to Chairman Saunders who objected the nature of the amendments.  The rest were temporarily passed so that staff and other stake holders can continue to work on producing a consensus product.

Representatives of the automobile industry objected to an amendment that could have the potential of delegating Florida’s regulation of vehicle emission standards to a California emissions board.  Under one of Governor Crist’s executive orders, automobiles in Florida would have to be modified in such a way that their emissions would meet California standards.  This would have the potential to drastically increase the cost of vehicles in Florida.  The amendment was ultimately withdrawn.

Another amendment that caused some interesting debate was offered by Senator Paula Dockery (R-Lakeland).  Senator Dockery’s amendment would have removed the entire section of the bill dealing with the establishment the “Florida Renewable Fuel Standard Act.”  This section of the bill establishes an aggressive renewable transportation fuel standard which requires that by 2015 -10 percent of all fuels consumed in the State be renewable fuels such as ethanol or biodiesel.  Senator Dockery’s concern was that this section prolonged Florida’s dependence on foreign sources of energy by relying too heavily on Brazilian ethanol.  Senator Dockery would prefer to provide incentives for local producers of feed stock for the production of ethanol.  Several members of the Committee agreed with Senator Dockery and ultimately the amendment was temporarily passed so that the issue can be further discussed.

Chairman Saunders expects to vote on SB 1544 next week in order to have the bill ready for the Senate floor during the fourth week of session.

AIF and its Florida Energy Council recognize the importance energy plays in keeping Florida’s economy healthy and vibrant.  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.  Florida should ensure that every effort is made to undertake a balanced approach that avoids unrealistic requirements on energy producers and suppliers.  AIF is especially troubled and opposes any effort to restructure Florida’s energy policy governance.  In an era of shrinking state revenues, increasing the size and scope of government does not make sense.