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Florida Department of Agriculture and Consumer Services CHARLES H. BRONSON COMMISSIONER

Florida Public Service Commission. Renewable Energy Workshop January 19, 2007 Overview of the Potential for More Renewable Energy in Florida. Florida Department of Agriculture and Consumer Services CHARLES H. BRONSON COMMISSIONER. Outline. Current Energy Situation Recent Initiatives

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Florida Department of Agriculture and Consumer Services CHARLES H. BRONSON COMMISSIONER

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  1. Florida Public Service Commission Renewable Energy Workshop January 19, 2007 Overview of the Potential for More Renewable Energy in Florida Florida Department of Agriculture and Consumer Services CHARLES H. BRONSON COMMISSIONER

  2. Outline • Current Energy Situation • Recent Initiatives • Biomass Potential

  3. Source: Energy Information Administration (2004 Data)

  4. Source: Energy Information Administration

  5. Renewable Energy in Florida • "Renewable energy" means electrical energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations. ss. 366.91(2)(b), 377.803(6), FS.

  6. Source: Florida’s Energy Plan (2006)

  7. Recent Initiatives • Energy Policy Act of 2005 • President’s Advanced Energy Initiative • Foster the breakthrough technologies needed to make cellulosic ethanol cost-competitive with corn-based ethanol by 2012 • Florida Renewable Energy Technologies and Efficiency Act of 2006 • 100 Innovative Ideas for Florida’s Future • 25x’25 • Florida Farm to Fuel

  8. Florida Renewable Energy Technologies and Efficiency Act • Renewable Energy Technologies Grants Program provides matching grants for renewable energy technology demonstration, commercialization, research, and development projects. $15 million. • 74 bioenergy applications requesting nearly $88 million with more than $350 million cost share • 148 renewable energy applications requesting more than $185 million with more than $412 million cost share • Renewable energy production tax credit of $0.01 per kwh with a $5 million per year cap to encourage the development and expansion of facilities that produce and sell renewable energy in Florida.

  9. Grants for Renewable Energy Technologies * * * * * * * * * D.C. * State offers at least one grant program * Private, utility and/or local program DSIRE: www.dsireusa.org November 2006

  10. Loan Programs for Renewables D.C. State & utility/local programs State program Utility or local programs DSIRE: www.dsireusa.org November 2006

  11. Renewable PortfolioStandards MN: 10% by 2015 Goal + Xcel mandate of 1,125 MW wind by 2010 VT: RE meets load growth by 2012 ME: 30% by 2000; 10% by 2017 goal - new RE *WA: 15% by 2020 WI: requirement varies by utility; 10% by 2015 Goal MT: 15% by 2015 MA: 4% by 2009 + 1% annual increase RI: 15% by 2020 CT: 10% by 2010 CA: 20% by 2010 IA: 105 MW • NY: 24% by 2013 • NJ: 22.5% by 2021 IL: 8% by 2013 • NV: 20% by 2015 • CO: 10% by 2015 • PA: 18%¹ by 2020 *MD: 7.5% by 2019 • AZ: 15% by 2025 *NM: 10% by 2011 *DE: 10% by 2019 • DC: 11% by 2022 TX: 5,880 MW by 2015 HI: 20% by 2020 State RPS State Goal • Minimum solar or customer-sited requirement * Increased credit for solar or customer-sited • ¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources) SWH eligible DSIRE: www.dsireusa.org November 2006

  12. Net Metering Rules 25 kW 100 kW 50 kW NH: 25 MA: 60 RI: 25 * CT: 100 100 VT: 15/150 100 * * 50 100 * 40 * 25 30 * 10/400 20 * 25/100 * 25 * * 500 no limit * PA: 50/1,000/2,000 NJ: 2,000 DE: 25 MD: 500 DC: 100 VA: 10/500 * 40 * * 30 * * 2,000 10 25 * 1,000 15 * 20/100 * * 100 25/100 10 10/100 10 * 50 25/100 10 50 Net metering is available in 40 states + D.C. State-wide net metering for all utility types * State-wide net metering for certain utility types (e.g., IOUs only) Net metering offered by one or more individual utilities #s indicate system size limit (kW); in some cases limits are different for residential and commercial as shown www.dsireusa.org September 2006

  13. 100 Innovative Ideas for Florida’s Future IDEA 75 “Strive to be the national leader in fostering the development and use of alternative energy sources, and strive to lead the nation in ethanol production.” Problem: Dependence on oil jeopardizes Florida’s continued economic prosperity. Solution: Promote the development and use of alternative energy sources, and begin production of ethanol.

  14. By the year 2025, America’s farms, ranches and forests will provide 25 percent of the total energy consumed in the U.S. while continuing to produce safe, abundant and affordable food, feed and fiber.

  15. Total Domestic Energy Production and Consumption 127.0 } 99.7 } 40.4 86.6 70.4 29.3 Quads of Energy Prod Cons Prod Cons 2025 Forecast 2004 Actual Source: EIA Annual Energy Outlook 2006

  16. Current (2004) Goal (2025) 31.7 Quads Renewable Energy 99.7 Quads Total Energy Consumed 127.0 Quads Total Energy Consumed 25x’25 6.1 Quads Renewable Energy

  17. 25x’25 Initiative • Formed Spring 2004 • Organized to explore agriculture and forestry’s role in energy production • Seeks to forge consensus on a new energy future • Focuses on economic, national security and environmental benefits • Endorsed by more than 350 groups • Three-phase project • create a vision • build an energy alliance • construct an implementation strategy

  18. 25x’25 goal will be met by... • Producing transportation fuels • Harnessing wind energy • Converting biogas emissions • Capturing solar energy • Providing biomass for generating heat and power

  19. Implementing the 25x’25 Goal: A Call to Action • Policies needed for…. • Increasing production of renewable energy • Delivering renewable energy to markets • Expanding renewable energy markets www.25x25.org

  20. Is 25x’25 Achievable? YES! • A recent study from the RAND Corp. concluded that the 25% renewables goal could be reached without raising the overall cost of the energy supply and would cut a projected increase in CO2 emissions by two thirds. • A University of Tennessee study recently concluded that the 25x’25 goal can be met while continuing to provide safe, abundant and affordable food, feed and fiber. It estimated that America’s farms, forests and ranches can annually produce: • 86 billion gallons of ethanol • 1.1 billion gallons of biodiesel • 932 billion kwh of electricity • 15.45 quads of energy from biomass

  21. 570.954 Farm-to-fuel initiative.-- (1) The department may develop a farm-to-fuel initiative to enhance the market for and promote the production and distribution of renewable energy from Florida-grown crops, agricultural wastes and residues, and other biomass and to enhance the value of agricultural products or expand agribusiness in the state. (2) The department may conduct a statewide comprehensive information and education program aimed at educating the general public about the benefits of renewable energy and the use of alternative fuels. (3) The department shall coordinate with and solicit the expertise of the state energy office within the Department of Environmental Protection when developing and implementing this initiative.

  22. Farm to Fuel Summit • First of its kind in Florida • More than 300 participants • Ag Industry (50) • Federal/State/Local Government (65) • Future Ethanol/Biodiesel Producers (65) • Education (25) • Petroleum Industry (20) • Finance/Lending (10) • Government Relations (10) • Topics included ethanol/biodiesel research, production, distribution and incentives

  23. Biomass • "Biomass" means a power source that is comprised of, but not limited to, combustible residues or gases from forest products manufacturing, agricultural and orchard crops, waste products from livestock and poultry operations and food processing, urban wood waste, municipal solid waste, municipal liquid waste treatment operations, and landfill gas. s. 366.91(2)(a), FS. • Offers an alternative to conventional energy sources. • Provides national energy security, economic growth, and environmental benefits.

  24. “Billion Ton Study” Source: Perlack, Wright et al., 2005

  25. Sources of Biomass in Florida • 43,000 farms and ranches • 10 million acres cropland • 15.5 million acres of timberland • 3.4 million acres of pastureland • Marginal land can be put in crops that are well-suited to Florida to make ethanol

  26. Types of Biomass in Florida • Fast-growing trees and crops • Agricultural residues • Animal manures • Forest debris and thinnings, undergrowth in timber stands • Leftover materials from the wood products industry • Urban wood waste

  27. Agricultural Feedstocks in Florida Source: Florida Agriculture Statistical Directory 2005

  28. Benefits of Renewable Energy to Agriculture • Increased farm income • Added value uses for crops, livestock, agricultural residues, and byproducts • Alternative agricultural and rural enterprises • More productive use of marginal land • Resolution of air, water and soil quality problems • Increased reliance on new markets to maintain the viability of agriculture • Major impact on rural development with many job opportunities being created through the processing of agricultural products and byproducts

  29. www.florida-agriculture.com/farmtofuel.htm

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