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Today, the House Energy Committee took up a massive omnibus energy package that addresses everything form renewable energy standards, and solar energy initiatives, to energy efficient building code requirements, and provisions that will increase the state's consumption of ethanol. PCB ENRC 08-01 is a comprehensive energy bill that seeks to steer Florida towards more energy efficient practices through statutory revisions to production and consumption of energy.
Crafted by committee members after two weeks of debate, the bill as amended seeks to revamp several critical areas of the state's energy policy. Some areas of interest are:
- Creation of a 7 member Florida Energy and Climate Commission;
- Creation of a Renewable Portfolio Standard (RPS) that requires more renewable energy by 2021;
- Creation of a Renewable fuel Standard that requires all gasoline sold in Florida to contain at least 10% ethanol by 2010; and
- Adoption of new energy conservation standards for new construction of municipal, county, and state buildings as well as universities and courthouses.
In weeks past, the committee had already discussed many of these issues and heard hours of public testimony from citizens, lobbyist and government officials. A number of amendments to the bill were debated this afternoon. One amendment, by Chairman Paige Kreegel (R-Punta Gorda), would allow a business that had earned renewable energy tax credits to transfer those credits in case the company is sold by another entity or in a situation where more than one entity owns the company an those entities split up, the appropriate share of credits would go with the appropriate entities.
Another Kreegel amendment stated that the RPS could not go into effect until ratified by the Legislature. The bill now also stipulates an RPS for energy provided by utility companies must be at 5% by 2021, starting at 2.5% in 2009 and moving up .25% each year until 2021.
Democrats fought for some "unfriendly" amendments to the bill that were ultimately defeated by the GOP dominated committee. In particular, Representative Rick Kriseman (D-St. Petersburg) sought to put amendments on the bill that would have allowed the state to pay 10% more than market price for hybrid vehicles. This amendment was defeated when questions arose by Representative Andy Gardiner (R-Orlando) about the timing of this amendment due to the state's budget crisis, as well as Representative Don Brown's (R-DeFuniak Springs) questions arising from the purchase of large special service vehicles.
Ultimately, the energy package received bipartisan support in both the comments from the members as well as in the unanimous vote. Many believe most components of this bill are supported by leadership as well as the Governor's Office and DEP.
The legislation is expected to be considered by the Environmental and Natural Resource Council in the near future.
The Senate Environmental Preservation & Conservation Committee took up the Senate’s version of the Governor’s energy package this afternoon. After three weeks of debate the Committee finally passed SB 1544 Relating to Energy by Senator Burt Saunders (R-Naples), but not after adopting a series of late-filed amendments.
The bill contains many of the same provisions found in the House’s energy package such as the new energy policy governance structure, a cap and trade program for reducing carbon emissions, and renewable fuel standards. Still there are some differences between the two bills. For starters, the Senate bill was amended today to include some new solar energy language, which establishes a new renewable portfolio standard with a strong emphasis on solar energy. Under this new language utilities would have to have at least 3% of the energy production coming from solar energy sources. The Senate bill was also amended to include a provision, which requires DEP to establish a program that would reduce solid waste, through recycling, by a statewide 75 percent.
Senator Don Gaetz (R-Niceville) was able to add some of amendments to the bill that would require the State to undertake a number of cost-benefit analysis studies for the purposes of understanding what the fiscal impact of some of the more controversial aspects of the bill would be for consumers and businesses. AIF would like to thank Senator Gaetz for considering these important questions.
Ultimately, SB 1544 was unanimously passed by the Committee and will now go on to its next committee of reference, which should be the Senate Communications and Public Utilities Committee chaired by Senator Lee Constantine (R-Altamonte Springs). There have been some rumors that the bill will not be referenced to this committee, however.
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.
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