16 May, 2024

Fla. governor signs bill to encourage gas generation, block offshore wind

Florida Gov. Ron DeSantis (R) has signed sweeping legislation to alter state energy policy, including removing language about emissions reductions while promoting and protecting gas generation and seeking to stop offshore wind development.

House Bill 1645 virtually eliminates the term "climate change" and other similar language from state statute. The legislation also limits or ends several provisions or programs related to climate change and the energy transition. DeSantis signed H.B. 1645 on May 15, and the new law takes effect July 1.

H.B. 1645 and its Senate counterpart, introduced in January by Rep. Bobby Payne (R), sought to amend current state law that said Florida's "energy security can be increased" by reducing dependence on foreign oil, that climate change impacts can be reduced by limiting greenhouse gas emissions, and that implementing new energy technology could create jobs.

Under newly signed legislation, the law will 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."

"We're restoring sanity in our approach to energy and rejecting the agenda of the radical green zealots," DeSantis said of the legislation in a May 15 post on social platform X, formerly Twitter.

Among other provisions, the legislation removes the authority of the Florida Agriculture and Consumer Services Department's Office of Energy to set renewable energy goals.

The legislation promotes gas generation, including widening the scope of where such facilities can be constructed and removing local governments' authority to block the location of such projects.

It also includes a measure to allow public utilities to seek cost recovery for gas facility relocation and requires the Florida Public Service Commission to allow recovery of costs deemed prudent.

The new law mandates 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 mention "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.

The 38-page bill passed out of the Senate and the House in March with votes of 28-12 and 81-29, respectively.

Utility impact

Florida utilities "should not be heavily impacted" by the language changes in the legislation, analysts have said previously. 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.

NextEra President, CEO and Chairman John Ketchum said in April that renewables with battery storage are a better answer to the coming US electricity demand boom over other forms of generation. The Florida-headquartered company also said earlier this year that it was adding 9 GW to its backlog and 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.