|
Energy
Energy is the lifeblood of our economy and an essential component of our standard of living. Whether it is electricity to run homes or businesses or fuels to power transportation systems, energy is critical to modern life. In recent years, however, the growing specter of global climate change (and the associated greenhouse gas emissions), combined with uncertainty in economic and geopolitical affairs has introduced a myriad of new energy-related challenges and opportunities. With this background, the state’s energy policy is dedicated to ensuring that Floridians enjoy a sustainable, diverse, and clean energy future that addresses the challenges of climate change while strengthening Florida’s economy and environment. Key elements of this policy include: (1) stimulating economic development in our state associated with existing and emerging alternative energy strategies; (2) increasing energy security by diversifying our fuel supply and reducing our dependence on foreign fuels; and (3) addressing potential impacts on Florida from climate change. Florida has a range of programs in place and under development to realize these goals.
Why Is This Important?
With more than 18 million residents, 84 million annual visitors, and a diverse economy, Florida is a large and growing state. According to the U.S. Energy Information Administration (EIA), Florida currently ranks third nationally (after Texas and California) in total energy consumption. While projections of load growth have recently been scaled back, demand for additional generation capacity remains significant. Current trends indicate Florida's reliance on natural gas to generate electricity will continue to increase. In the transportation sector, Florida currently consumes more than 8.5 billion gallons of gasoline per year, and consumption is growing annually by approximately 300 million gallons. Virtually all of Florida's electric and transportation fuels are imported from other states and countries. The adverse impacts of this dependency were illustrated during recent hurricane seasons when Florida's vulnerability to fuel supply disruptions resulted in a negative impact to Florida's economy. Similarly, the extreme volatility in energy-related costs has negatively impacted both energy producers and consumers in recent years.
Florida also ranks third nationally in greenhouse gas emissions. The state's reliance on fossil fuels for electricity and transportation generates more than 80 percent of greenhouse gases emitted in the state. Given Florida’s 1,350 mile coastline, sea-level change is a major concern. Climate change could negatively impact Florida in a variety of additional ways. The state could experience climbing temperatures, health-related concerns, alterations in rainfall, damage to coral reefs, increased beach erosion, negative impacts to fish and wildlife, and other adverse consequences. If Florida and other states and nations take action now to reduce emissions of greenhouse gases, many of these adverse effects may be avoided or minimized.
How Is Florida Doing?
Floridians enjoy a relatively low-cost, stable, and reliable supply of electricity. Florida’s average residential rates hover around the national average and are comparable with Texas and Pennsylvania and lower then California and New York. In 2006, Florida’s electrical generation was heavily dependent on two imported fuel types, natural gas (38 percent) and coal (29 percent), and only included two percent renewable energy. Over the last three years, Florida has implemented a number of sweeping changes to diversify its fuel supply, reduce its dependence on foreign fuel supplies, and address climate change. Over the next ten years Florida will add more renewable and nuclear energy to diversify its electricity fuel supply and all automotive fuel will include 10% biofuel by 2010. With the construction of three new Florida based solar projects—a 10 MW photovoltaic facility at Kennedy Space Center, a 75 MW solar thermal facility in Martin County, and a 25 MW photovoltaic facility in Desoto County—Florida will become the second-largest supplier of utility-scale solar power in the nation. In addition, the United States Department of Energy recently ranked Florida’s two largest utilities number one and number four in the nation in terms cumulative demand reduction.
Federal Stimulus Funds and Energy Programs
Under the American Recovery and Reinvestment Act (ARRA) of 2009, the State of Florida will utilize federal funds to invest in energy-related programs and activities that maximize the return on investment and target strategies and activities that are calculated to provide significant energy savings, job creation, and economic stimulus effect. The goals and objectives identified in the federal authorization will guide and inform the selection of specific programs for funding. Additionally, the state’s implementation plan will be shaped in part by lessons learned through the administration of various state-funded energy efficiency and renewable programs.
State Energy Programs will fund 10 programs through grants, loans and rebates in various stages of implementation to distribute $126 million. Florida’s plan includes a focus on public safety, where the Energy Assurance Grant joins agencies in a collaborative effort to strengthen emergency preparedness capabilities. Other funding provides Energy Star Appliance rebates, designed to stimulate the purchase of new, energy-efficient appliances. Energy Efficiency and Conservation Block Grants enable small cities and counties to apply for a grant for energy improvements. These grants also fund energy efficiency improvements that will result in less energy consumption in state buildings.
Scorecard
What Influences the Development of Renewable Energy?
The development of renewable energy and energy efficiency in Florida is influenced by our goals to enhance energy security, strengthen our economy and reduce greenhouse gas emissions. Florida continues to invest in a diversified energy portfolio of nuclear, solar, wind and biomass energy, making consumers less vulnerable to volatile energy costs. In addition, Florida has reduced our dependence on foreign oil by passing a Renewable Fuel Standard (RFS). The RFS requires all gasoline sold or offered in the state to contain 9 to 10% ethanol by December 31, 2010.
A state regulatory tool known as a Renewable Portfolio Standards (RPS) also drives renewable energy markets. An RPS requires a minimum percentage of total annual retail electricity sales to be supplied by renewable energy produced in Florida. In 2009, the Florida Public Service Commission recommended a pr oposed RPS to the Florida Legislature. Although the Legislature did not enact an RPS during the 2009 Legislative session, there is continuing interest in opportunities to encourage the expansion of renewable and clean energy production in Florida.< br/>
Several initiatives at the federal level are also influencing the development of renewable energy. The passage of the American Recovery and Reinvestment Act (ARRA) of 2009 provided state energy offices with significant funding to support renewable energy and energy efficiency projects. The Governor’s Energy Office and the Florida Energy and Climate Commission are implementing a host of new programs and funding opportunities in support of this initiative. Similarly, Congress is considering major energy and climate change-related legislation that could significantly impact renewable energy in Florida.
What Is the State's Role?
In recent years the State of Florida has launched a number of initiatives to encourage alternative energy technologies, enhance energy security and address climate change. For example, the Florida Renewable Energy Technologies and Energy Efficiency Act of 2006 provided financial incentives to increase the availability of clean fuels. A major component of the Act is the renewable energy grant program. The Act also provided financial incentives for the purchase and installation of solar energy systems in both residential and commercial applications. To date, over $15 million in state funding has been invested in the solar rebate program. In 2007, Governor Charlie Crist signed a series of executive orders that significantly expanded Florida’s energy efficiency and greenhouse gas (GHG) reduction efforts. For example, Executive Order 07-127 established reduction targets for GHG emissions in Florida. Specifically, the Executive Order established the following emission reduction targets: by 2017, reduce GHG emissions to 2000 levels; by 2025, reduce GHG emissions to 1990 levels; and by 2050, reduce GHG emissions to 80% below 1990 levels. The same executive order instructed the Department of Environmental Protection to commence rule development in support of the adoption of the California motor vehicle emission standards.
In 2008, the Governor signed HB 7135, a wide-ranging piece of legislation affecting virtually all facets of Florida’s energy and climate change policy. Briefly, the legislation implemented the following provisions:
• created the Florida Energy and Climate Commission within the Executive Office of the Governor to centralize energy and climate change policy development and program implementation;
• authorized the Department of Environmental Protection to develop “cap and trade” regulations for GHG emissions for sources in Florida subject to legislative ratification in the 2010 Regular Session;
• expanded key economic development programs to attract specific investments in the renewable energy sector to Florida;
• required a “10 by 10” Renewable Fuel Standard requiring that all gasoline sold for motor vehicles in Florida contain 10% ethanol in 2010;
• required the Public Service Commission to develop rules for a renewable portfolio standard subject to future legislative ratification;
• reduced energy consumption and associated GHG emissions from state, regional and local government operations by requiring public buildings constructed to meet recognized green building standards; consideration of energy and climate performance in vehicle, commodity, and meeting space procurement; active energy management among state agencies; and increased energy and water efficiencies from government facilities through streamlining of existing statutes governing guaranteed performance savings contracts;
• increased the role of energy efficiency in Florida’s energy policy through revisions to the Florida Energy Efficiency and Conservation Act, providing goals for the Florida Building Commission to increase efficiency standards by 10% in each triennial review to achieve a 50% increase by 2019, and increasing efficiency requirements for certain appliances;
• created the Florida Energy Systems Consortium as a “super center of excellence” within the State University System to better coordinate energy-related research in support of Florida’s energy and climate change policy objectives; and
• balanced the need for expanded electric transmission infrastructure within Florida with the need for conservation land protection and informed public participation in the siting process by providing the terms and conditions for use of state lands, clarifying timelines in the transmission line siting process, and increased public participation through new mail notice requirements and provisions for additional hearings for local residents.
For More Information
|
