TALLAHASSEE - Governor Jeb Bush today released the 2006 Florida Energy Act, a $30 million strategy this year to diversify the state’s fuel supply and provide long term energy security. This four year comprehensive plan provides rebates, grants and tax incentives to create a more balanced energy portfolio by increasing Florida's investment in renewable energy sources such as solar, hydrogen and biofuels.
“A reliable, cost-efficient supply of energy is critical to Florida’s continued prosperity,” said Governor Bush. “Through diversity and conservation efforts, we can reduce our dependence on imported oil, spur economic growth and ensure that a balanced mix of fuel sources and technologies are readily available for years to come.”
Recent events highlight the need for a comprehensive energy strategy. The hurricanes of 2004 and 2005 demonstrated Florida’s vulnerability to electric generation and supply disruptions. Currently, school districts and state universities are facing a 34 percent increase in the cost of fuel and small businesses are facing up to a 30 percent increase in energy costs. Additionally, the state’s electric consumption is expected to increase by close to 30 percent over the next ten years.
Population and prosperity are increasing the demand for power and transportation fuel. The demand for motor vehicle transportation fuel is expected to grow from 28 million gallons per day to more than 32 million gallons per day with Florida depending almost exclusively on other states and nations for supplies of oil and gasoline.
Drawing on recommendations submitted by the Florida Department of Environmental Protection (DEP), Governor Bush is proposing that legislation be introduced during the 2006 Legislative Session to eliminate unnecessary regulatory barriers and provide economic incentives to promote conservation, efficiency and diversification of our energy supply.
To eliminate unnecessary regulatory processes that can hinder progress, Governor Bush is proposing the streamlining of regulations to stabilize energy costs and ensure reliability.
- The 2006 Florida Energy Act encourages diversity in new electric generation capacity by allowing the Public Service Commission to consider fuel diversity and fuel reliability, instead of cost alone, when reviewing electric generation permits.
- Proposed changes to the Power Plant Siting Act will expedite new electric generation capacity, improving the reliability of electric utility generation and reducing the state’s reliance on one fuel type.
To reduce consumer costs and increase energy efficiency, Governor Bush is proposing a $5 million investment this year to fund two rebate programs:
- The Energy Efficient Appliance Rebate Program will provide consumer rebates for purchases of energy efficient ENERGY STARÔ appliances. In just their first year, by utilizing Energy Star Rebates to purchase and use energy efficient appliances, consumers will conserve more than 10 million kilowatt hours.
- The Solar Energy Equipment Rebate Program will reduce the initial costs for installations of photovoltaic and solar thermal technology on residential and commercial buildings.
“Advancing clean, reliable and affordable energy sources is key to Florida’s economic future,” said Senator Lee Constantine. “Creating an energy policy for Florida is not only a priority for this year, but for years to come.”
To diversify Florida’s energy supply and economy with cleaner fuels, Governor Bush is recommending $15 million for four years in tax incentives. Renewable Energy Technologies Tax Incentives provide sale tax exemptions and corporate income tax credits for the production of cleaner fuels, including biodeisel, ethanol and hydrogen.
Additionally, Governor Bush is recommending $10 million in new grants to fund research projects testing the commercial viability of these “next generation” technologies. Together with our federal partners, Florida has already invested $9 million in hydrogen infrastructure, yielding a four to one return on our investment.
“Securing a diverse and reliable supply of energy for Florida’s taxpayers is one of my top priorities,” said Representative Adam Hasner. “We must use legislation to reduce regulatory barriers and provide financial incentives to encourage the creation and use of renewable energy.”
These important legislative initiatives, combined with regulatory relief and administrative actions, comprise a comprehensive plan that utilizes 21st century technology to enable Florida to promote conservation and diversify its energy supply. The 2006 Florida Energy Act encourages and supports market-based development of reliable and cost-effective energy alternatives. Instead of mandates and taxes, the Governor's strategy uses targeted incentives and government purchasing power to stimulate the free market and shape new technologies.
“Governor Bush is taking the steps needed to protect Florida’s growing economy and quality of life,” said Florida Department of Environmental Protection Secretary Colleen M. Castille. “Florida’s Energy Act provides a foundation for securing and diversifying our energy sources and represents a practical and comprehensive step to meeting the challenges ahead.”
Governor Bush is encouraging government to lead by example, requiring all new State government buildings to meet national energy efficiency standards. Additionally, executive agencies were directed to continue their conservation efforts to reduce the demand for energy and develop innovative conservation initiatives to serve as a model to all Floridians.
For more information or a copy of the plan, visit www.FloridaEnergy.org.
