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1 Mar, 2024
Sweeping legislation in Florida would significantly alter state energy policy, including removing language about emissions reductions while promoting and protecting gas generation and seeking to stop offshore wind development.
Senate Bill 1624 and House Bill 1645 aim to virtually eliminate the term "climate change" and other similar language from state statute. They would also limit or end several provisions or programs related to climate change and energy transition.
The Republican-backed bills would amend current state law that says Florida's "energy security can be increased" by reducing dependence on foreign oil, climate change impacts can be reduced by limiting greenhouse gas emissions, and implementing new energy technology could create jobs.
Under the new proposals, the law would instead read: "The purpose of the state's energy policy is to ensure an adequate, reliable and cost-effective supply of energy for the state in a manner that promotes the health and welfare of the public and economic growth."
Among other provisions, the bills remove the authority of the Florida Agriculture and Consumer Services Department's Office of Energy to set renewable energy goals.
Rep. Bobby Payne (R), sponsor for H.B. 1645, said during a Appropriations Committee hearing in February that the US has allocated billions of dollars for a "climate change initiative and ideology that is unfitting for our country. ... Our country would not be where it is today without fossil fuels."
Promoting gas, preventing wind development
The proposals promote gas generation, including widening the scope of where such facilities can be constructed and removing the authority of local governments to block where they can locate.
The proposals would mandate that Florida "promote the cost-effective development and maintenance of energy infrastructure that is resilient to natural and manmade threats to the security and reliability of the state's energy supply." The bills specifically mentioned "natural gas resiliency and reliability infrastructure."
The legislation also aims to block development of offshore wind generation by "prohibiting the construction, operation or expansion of certain wind energy facilities and wind turbines" in the state, and it would require Florida's Environmental Protection Department to review applications for federal wind energy leases in US waters adjacent to Florida waters.
"This is about maintaining energy stability in our state," state Sen. Jay Collins (R), sponsor of S.B. 1624, said during a Senate Fiscal Policy Committee hearing Feb. 27.
The legislation includes a measure to allow public utilities to seek cost recovery for gas facility relocation and requiring the utilities commission to recovery such costs deemed prudent.
The bills mandate a statewide assessment of the "security and resiliency of the state's electric grid and natural gas facilities against physical threats and cyberthreats" as well as a study to "evaluate the technical and economic feasibility of using advanced nuclear power technologies."
Both bills have passed out of multiple committees and appear headed for hearings in the full House, where Republicans hold an 85-35 majority, and the Senate, where Republicans have a 28-12 majority.
Utility impact
Florida utilities "should not be heavily impacted" by the language changes in the proposed legislation, according to a Feb. 21 Guggenheim analyst note. The majority of renewables being deployed by major Florida utilities such as NextEra Energy Inc. subsidiary Florida Power & Light Co. and Duke Energy Corp. subsidiary Duke Energy Florida LLC are solar and "remain based on economics and reliability considerations," Guggenheim analysts wrote.
In January, NextEra executives shared that the company had a record year of new renewables and storage origination in 2023 and was adding 9 GW to its backlog. The majority of that generation is solar. Florida Power & Light alone expects to increase solar from 5% of its total generation to about 35% by 2032 by adding more than 15,000 incremental megawatts.
Duke has told Florida regulators that it expects to build 14 new solar plants between 2025 and 2027, adding 1,050 MW of generation.