Planning
for Future Energy Needs
Florida’s economy thrives
on the energy that businesses need to produce goods and provide
services to consumers. And that’s why AIF was the state’s
first major business association to sign on as a supporter of
national and state efforts to expand our stateÕs energy
supplies.
The last review of Florida’s energy needs was in 2000 by
the Florida Energy 2020 Study Commission. Since that time there
has been the blackout in the Northeast in 2003. Oil prices have
been on a roller coaster ride. The 2004 and 2005 hurricane seasons
reminded all of us that Florida is vulnerable to supply interruptions
and price shocks.
Recognizing the threat posed to our state’s prosperity
by inadequate energy supplies, Gov. Jeb Bush ordered the Florida
Department of Environmental Protection (DEP) to analyze current
and future energy supply and demand needs.
DEP Secretary Colleen Castille convened a forum of energy industry
leaders to discuss issues involving energy supplies, generation,
transmission, distribution, conservation, and security.
Forum participants generally concluded that Florida needs to
diversify its sources of supplies, to include nuclear, coal, and
solar for electric generation, as well as hydrogen for transportation
fuel. In addition, the state may need to explore expanding the
LNG (liquefied natural gas) pipeline system into Florida. The
participants also encouraged the consideration of off-shore drilling
and exploration.
In February, Gov. Jeb Bush released his proposed 2006 Florida
Energy Act, a four-year, $75-million comprehensive plan that relies
on incentives to create a more balanced energy portfolio. The
act would fund grants for research and development of technologies
associated with the development of alternative fuel vehicles,
renewable energy systems, and other next-generation energy technology.
Sales-tax exemptions and corporate-income tax credits would
provide incentives to improve production, develop distribution
infrastructure, and increase availability of clean fuels. The
following would include biodiesel and ethanol, hydrogen fuel vehicles
and fueling stations. Incentives would also be used to boost manufacturing,
purchasing and usage of hydrogen fuel cells for supplemental and
backup power.
The act would also streamline regulations that ensure reliability
by removing barriers to stabilized costs and diversified supply.
This will require amendments to the Power Plant Siting Act to
help expedite projects to increase energy generation and transmission.
It is a combination of all of these proposals that will help
to guarantee a consistent supply of energy for to meet the growing
demand in Florida.
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