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EEnneerrggyyEEffffiicciieennccyyaannddRReenneewwaabbllee
EEnneerrggyyiinnFFlloorriiddaa
FortheFloridaEnergyandClimateCommission
By
TheFloridaEnergySystemsConsortium
Dr.JulieHarrington,DirectorDr.BassamAwad
ZafarSiddiquiDavidGlassner
StephenMuscarella
CenterforEconomicForecastingandAnalysis(CEFA)FloridaStateUniversity
TedKury,Director,EnergyStudiesAchalaAcharya
TheUFPublicUtilityResearchCenter(PURC)UniversityofFlorida
ErikSander,AssociateDirectorTheFloridaEnergySystemsConsortium(FESC)
JackSullivanJr.Dr.AsterR.Adams
March22,2010
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Acknowledgments:
Theauthorswould liketothanktheDirectoroftheUniversityofCentralFloridaVentureLab,
KirstieChadwick,and theDirectoroftheUniversityofFloridaOfficeofTechnologyLicensing,
DavidDay,fortheirassistancerelatingtoventurecapital(VC)companiesinFlorida.Theauthors
would liketoextendthankstoSenaBlack,ofEnterpriseFlorida, forproviding informationon
FloridasOpportunityFund. Inaddition, theauthorsaregrateful toMarkFutrellandWalter
Clemence,ofthePublicServiceCommission(PSC),andtoBuckMartinez,ofFloridaPowerand
Light(FP&L),forprovidingclarificationonissuesrelatingtoFlorida.
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TableofContents
Acknowledgments:.................................................................................................................. 1
Introduction ............................................................................................................................ 7DefinitionsofRenewableEnergy,CleanEnergy,CleantechandEnergyEfficiency ................................. 9RenewableEnergyinFlorida .................................................................................................................... 9
CleanEnergyandCleantech................................................................................................................... 10EnergyEfficiency..................................................................................................................................... 12EconomicCostsandBenefitsofCleanEnergyinFlorida........................................................................ 13
CurrentIncentivesMix .......................................................................................................... 17InventoryofEconomicIncentivesThatImpacttheCleanEnergySectorinFlorida............................... 17TotalStateFundsAllocatedtoEachIncentiveandtheIncentivesAnnualUse .................................... 20FederalIncentivesforFlorida................................................................................................................. 25FloridaEnergyEfficiencyandConservationAct(Section366.82).......................................................... 28EnergyEfficiencyandRenewableEnergyIncentivesinCleanEnergyJobsandAmericanPowerAct2009........................................................................................................................................................ 28
Section161:RenewableEnergy .................................................................................................... 29
Section162:AdvancedBiofuels .................................................................................................... 29EnergyEfficiencyTargets................................................................................................................ 30
ProgramsOfferedbyLocalUtilities,Cities,andCounties...................................................................... 31
CommercialIncentives ............................................................................................................... 31
BarrierstoCommercializationandProjectFinance................................................................ 34MainBarrierstoCleantechCommercializationandProjectFinance..................................................... 42
PerceivedHighRiskofCleantechBusinesses .............................................................................. 42InsufficientInvestmentsinR&D .................................................................................................... 42OtherBarrierstoCleantechCommercializationandProjectFinance...................................... 48
CleanTechnologyLifeCycleandFundingSources................................................................................. 49
ResearchMethodology................................................................................................................... 49CurrentSituationandRelativePerformanceMetrics ................................................................ 50StateofAffairs:FloridaVentureCapitalCommunity............................................................................. 64
AssetFinanceBeyondCapitalMarkets,VentureCapital,PrivateandPublicEquity,andDebtandPrivateCapital................................................................................................................. 75
PublicBenefitFund................................................................................................................................. 76PropertyAssessedCleanEnergy(PACE)&EnergyFinancingDistrictsModels ..................................... 78
RegulatoryChanges............................................................................................................... 91TheRPSandItsEconomicImpact........................................................................................................... 91AnRPSforFlorida................................................................................................................................... 94PolicyConsiderationsforFloridaRecentDevelopments ..................................................................... 97
ConclusionsandRecommendations .................................................................................... 100Task1.................................................................................................................................................... 104Task2.................................................................................................................................................... 108Task3.................................................................................................................................................... 110Task4.................................................................................................................................................... 113Task5.................................................................................................................................................... 116
References........................................................................................................................... 122
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Appendices.......................................................................................................................... 131AppendixA:Tables ............................................................................................................................... 131AppendixB:FederalCleantechIncentivesThrough2009.................................................................... 231AppendixC:CleantechIncentiveProgramsOfferedbytheStateofFlorida ....................................... 233AppendixD:LeadingPublicFinancingToolsandMechanisms............................................................ 235AppendixE:ExpectationsofCleantechDevelopers............................................................................. 237
AppendixF:Energy
Recovery
Stimulus
Grant
Awardees
by
State ....................................................... 240AppendixG:PACEModel...................................................................................................................... 274
AppendixH:EconomicImpactandSuccessStories ............................................................................. 277AppendixI:FreeingtheFloridaGrid2009............................................................................................ 282AppendixJ:FederalLoanGuarantee.................................................................................................... 283AppendixK:EconomicDevelopmentStudyScopingDocument.......................................................... 289
ListofTablesTable1.CleanEnergyRelatedIndustriesListofNAICS .............................................................................. 11Table2.RenewableTechnologyCostsforU.S............................................................................................ 14Table3.RenewableTechnologyEstimatedEconomicImpactsforFlorida ................................................ 14Table4.InventoryofIncentivesThatImpacttheCleanEnergySectorinFlorida...................................... 19Table5.RemainingBalancesasofJanuary29,2010ofRenewableTaxCredits/SalesTaxRefunds ......... 22Table6.RenewableEnergyTechnologiesGrantsProgram ........................................................................ 23Table7.SolarEnergySystemIncentivesProgram(SolarRebate).............................................................. 24Table8.EconomicImpactofStateIncentivesinTermsofJobsCreated ................................................... 24Table9.CleanTechnologies........................................................................................................................ 35Table10.CleantechSubsectorsTrackedbyCleantechVentureNetworkandtheTypesofCleantechBusinesses................................................................................................................................................... 35Table11.CurrentSituationandRelativePerformanceMetrics................................................................. 50Table12.TopStateswithCleanEnergyPatents......................................................................................... 55Table13.TopStatesReceivingSBIRandSTTRFundsforCleanEnergyTechnologies20002008............. 57Table14.TopStatesCleantechVCDeals20002009($Millions) ............................................................ 61
Table15.TopStatesReceivingVCFundingforEarlyCapitalStage($Millions,SelectedYears) ............... 62Table16.TopStatesReceivingVCFundingforMid/LateCapitalStage($Millions,SelectedYears)......... 66Table17.HistoricalGrowthRatesofCTIUS,NEXandS&P500Indices....................................................... 69Table18.TopStateswithMostARRACleantechFunding.......................................................................... 84Table19.TopStateswithMostSmartGridInvestmentGrants................................................................. 85Table20.TopStateswithMostElectricDriveVehicleBatteryGrants....................................................... 86Table21.TopStateswithMostBiomassGrants ........................................................................................ 86Table22.TopStateswithMostGeothermalGrants .................................................................................. 87Table23.ARRAFundingforBreakthroughProjects($Millions) ............................................................... 87Table24.TopStateswithMostSBIR/STTRCleantechGrants .................................................................... 88Table25.SummaryTableofFloridasCurrentSituationandAchievementGap ....................................... 88
Table26.SummaryofStateIndustrialIncentivePrograms ....................................................................... 95Table27.CurrentIncentiveProgramsandRecommendations................................................................ 105Table28.IncentiveProgramsandTheirAvailabilityinFlorida................................................................. 110Table29.ProsandConsofEachPortfolioofProgramsToDecreaseBarriersTotheCommercializationoftheCleanTechnologySector .................................................................................................................... 111Table30.RenewablePortfolioStandardsbyState................................................................................... 131Table31.FederalIncentivesthatImpactCleanEnergyinFlorida............................................................ 132Table32.ProgramsOfferedbyLocalUtilities,Cities,andCounties......................................................... 135Table33.FloridaProjectsFundedthroughARRA2009............................................................................ 137
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Table34.TotalSBIR/STTRAwards,AllAgencies,AllTechnologies,20002008 ....................................... 141Table35.TotalSBIR/STTRAwards,AllAgencies,AllTechnologies,2008................................................. 142Table36.TotalSBIR/STTRAwards,AllAgencies,CleanEnergyTechnologies,20002008 ...................... 143Table37.NVCA:VentureCapitalInvestmentsbyState2000to2008($Millions).................................. 144Table38.NVCACapitalUnderManagementbyState2000to2008($Millions) .................................. 145Table39.VentureCapitalFundCommitments20002008(Millions).................................................... 146
Table
40.
Progress
of
States
in
Attaining
RPS ........................................................................................... 147Table41.RetailSalesofElectricitybyState20002007TotalElectricIndustry....................................... 148Table42.ListofStateswithanAngelTaxCreditProgram....................................................................... 150Table43.RenewablePortfolioStandardsbyStateAsofNovember2009............................................... 151Table44.RenewablePortfolioStandards:NotesbyState....................................................................... 152Table45.DowJonesVentureSource:TotalVentureCapitalbyStatefor20002009($Millions).......... 154Table46.DowJonesVentureSource:VCinMidLateStage*byStatefor20002009($Millions)........ 155Table47.DowJonesVentureSource:VCinEarlyStage*byStatefor20002009($Millions) ............... 156Table48.AngelGroupsbyStatewithAngelITCProgramsNotedfromNGAData(Circa2007) ............. 157Table49.StateAngelInvestmentTaxCredits .......................................................................................... 158Table50.SelectStateIncentivesforRenewableEnergy,November2009.............................................. 160Table51.StatePublicBenefitsFundsforRenewables(May2009EstimatedFunding) .......................... 161
Table52.CenterforVentureResearch,AngelActivityintheUS20012009........................................... 162Table53.StateSupportedVCFundsfromtheNASVF.............................................................................. 163Table54.U.S.StateSupportedVentureCapitalFunds:NationalAssociationofSeedandVentureFunds(NASVF)March2008................................................................................................................................. 165Table55.ARRA09Awards:VariousProgramsbyState ........................................................................... 167Table56.CleantechnologyInvestmentsbyYear..................................................................................... 169Table57.CleantechNetworkDealFlowfrom20002009:AllStagesofFinancingandAllCleantechIndustries .................................................................................................................................................. 171Table58.CleantechNetworkDealFlowfrom20002009:SeedandEarlyStageFunding,EnergyIndustries .................................................................................................................................................. 171Table59.CleantechNetworkDealFlowfrom20002009:Mid+StageFinancing,EnergyIndustry..... 172
Table60.CleantechNetworkDealFlowfrom20002009:SeedandEarlyStageFunding,EnvironmentalIndustries .................................................................................................................................................. 173Table61.CleantechNetworkDealFlowfrom20002009:Mid+StageFunding,EnvironmentalIndustries .................................................................................................................................................. 175Table62.CleantechNetworkDealFlowfrom20002009:SeedandEarlyStageFunding,IndustrialActivities.................................................................................................................................................... 175Table63.CleantechNetworkDealFlowfrom20002009:Mid+StageFunding,IndustrialActivities..176Table64.LevelizedCostofEnergyKeyAssumptions ............................................................................178Table65.ScienceAndEngineeringProfiles,byState(20062008)..........................................................179Table66.ElectricEnergyPricebyStateRevenueperKilowattHour(Cents)........................................181Table67.EIA:StateEnergyRankingsSeptember2009 ............................................................................182Table68.EnergyResources:MatrixofApplications................................................................................. 183Table69.EIA,19902007ExistingNameplateCapacitybyEnergySourceandState(SumofNAMEPLATECAPACITY(Megawatts))(EIA860):TotalElectricPowerIndustry........................................................... 184Table70.EIANameplateCapacityforCarbonFuelsinMWfortheTotalElectricPowerIndustry(20002007) ......................................................................................................................................................... 189Table71.EIANetGenerationbyStatebyPowerSourceforAllProducers(20002007)......................... 190Table72.EIANetGenerationbyStateForCarbonFuelSourcesforAllProducers(20002007)............. 197Table73.EIANetGenerationbyStateForHydroelectricSourcesforAllProducers(20002007) .......... 199Table74.EIANetGenerationbyStateForNuclearforAllProducers(20002007) ................................. 200Table75.EIANetGenerationbyStateForNonHydroRenewablesforAllProducers(20002007) .......201
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Table76.ARPAE..................................................................................................................................... 202Table77.GapAnalysis,FLvs.Top4:Startups .......................................................................................... 203Table78.GapAnalysis,FLvsTop4:ActiveLicensesandOptions(ACTLIC) ............................................. 204Table79.UtilityPatents:grantedbytheU.S.PatentandTrademarkOffice ........................................... 205Table80.GapAnalysis,FLvsTop4:AcademicPatentApplications ........................................................ 206Table81.GapAnalysis,FLvsTop4:Disclosures ...................................................................................... 207
Table
82.
Academic
R&D
Expenditures..................................................................................................... 208Table83.NSFResearchbyStateinDisciplinesw/CleantechImplications,2008.................................... 209Table84.ScientistandEngineersPlottedAgainstR&DfortopR&DStates ............................................ 210Table85.PhDScientistsandEngineersEmployedbyState ..................................................................... 212Table86.VentureCapitalFirmsListedin"CapitalVector"Database ...................................................... 212Table87.GapAnalysis,FLvsTop4:AcademicLicensingManagersbyState.......................................... 214Table88.GapAnalysis,FLvsTop4:PatentExpensestoProtectAcademicIntellectualProperty ......... 215Table89.AcademicFacultyandStudents:DataBuiltbyInstitutionfromCarnegieFoundationforPreviousFRCReport.................................................................................................................................. 216Table90.RenewablePortfolioStandardsbyState:RPSRequirement(%ofTotalElectricLoad)........... 217Table91.PrivateEquityBackedMergersandAcquisitionsbyYear($Millions) ...................................... 219Table92.PrivateEquityBackedAcquisitionsbyIndustry(20002008) ................................................... 220
Table93.VentureBackedIPO's,TotalOfferingSize($Millions) ............................................................. 221Table94.VentureBackedIPO's................................................................................................................ 222Table95.HistoricalCleanEnergyPatentsbyState .................................................................................. 223Table96.CapacityAdded,AllProducerforNonHyrdroRenewables(20002009)................................. 224Table97.CapacityAdded,AllProducersforCarbonFuelSources(20002009)...................................... 225Table98.CapacityAdded,AllProducersforHydroSources(20002009)................................................ 226Table99.CapacityAdded,AllProducersforAllFuelSources(20002009).............................................. 227Table100.CapacityAdditionsforNonHydroRenewables,SouthernCo,ProgressEnergy,TECO,FP&LGroup ........................................................................................................................................................ 229Table101.CapitalExpendituresatShareholderOwnedPublicUtilities($Billion)*............................... 230Table102.EmploymentinNewJerseysGreenIndustries:AverageAnnualEmployment,2009............ 280
Table103.FreeingtheFloridaGrid2009 ................................................................................................. 282
ListofFiguresFigure1.StagesofTechnologyDevelopment ............................................................................................ 37Figure2.MainProvidersofFinanceatEachStage..................................................................................... 39Figure3.TheCapitalandSkillsGapforCleantechandCleanEnergyInfrastructureProjectDevelopments............................................................................................................................................. 39Figure4.SequentialModelofDevelopmentandFunding......................................................................... 40Figure5.ValleyofDeath,fromInventiontoInnovation ............................................................................ 41Figure6.EquityGapatEachStageofDevelopment .................................................................................. 41Figure7.ComparisonofUSAGovernmentIncentivesforEnergyDevelopment,19502006.................... 46
Figure
8.
Federal
Subsidies
to
Fossil
Fuels.................................................................................................. 47Figure9.U.S.VCandPrivateEquityInvestmentinRenewableEnergyTechnologyCompanies,20012008($Millions) .................................................................................................................................................. 59Figure10.U.S.VCInvestmentsinCleantech:19952007(MillionConstant2005U.S.Dollars) ................ 60Figure11.TotalVCInvestmentsinNY,FLandNH,20002009($Millions) ............................................... 61Figure12.CleantechVCInvestmentsinTX,FLandMI,20002009($Millions) ........................................ 62Figure13.VCInvestmentsinEarlyStageInTX,FLandOH,20002009($Millions).................................. 63Figure14.VCInvestmentsInMid/LateStageForNY,FLAndOH,20002009($Millions)........................ 67Figure15.CleantechVCInvestmentsanMid/LateCapitalStageInFLandTX,20022009($Millions) ...68
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Figure16.CleantechIndexUSandNEXIndexComparedtoS&P500Index.............................................. 70Figure17.TheSustainableEnergyFinancingContinuum........................................................................... 72Figure18.U.S.RenewableEnergyInvestment........................................................................................... 74Figure19.AssetFinancingNorthAmerica............................................................................................... 74Figure20.RoleofTheU.S.DOEinFinancingCleantech............................................................................. 83Figure21.ImpactsoftheFinancialCrisisandFederalLegislationonRenewableEnergyProject
Development............................................................................................................................................... 84Figure22.VCInvestmentsinFlorida20012009...................................................................................... 170Figure23.WorkingPhDS&EvsR&D:Top20R&DStates(IncludingOutliersCA,MI,NY) ...................... 211Figure24.WorkingPhDS&EvsR&D:Top20R&DStates(ExcludingOutliersCA,MI,NY)...................... 211Figure25.UnitedStatesAnnualAverageWindPower ............................................................................ 228Figure26.FederalLoanGuaranteesforCommercialTechnologyRenewableEnergyGenerationProjectsUndertheFinancialInstitutionPartnershipProgram............................................................................... 283Figure27.FederalLoanGuaranteesforProjectsthatEmployInnovativeEnergyEfficiency,RenewableEnergy,andAdvancedTransmissionandDistributionTechnologies....................................................... 285Figure28.FederalLoanGuaranteesforElectricPowerTransmissionInfrastructureInvestmentProjects.................................................................................................................................................................. 287
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IntroductionCleanenergyisthefuture.Duetoincreasingenvironmentalconcerns,fluctuatingfossil
fuel prices and rising public awareness and interest in renewable energy, both globally and
domestically,countries,statesandmunicipalgovernments,andprivateandnonprofitentities
aretryingtosteerthemomentumofeconomicdevelopmenttowardscleanerandrenewable
sourcesofenergy.
Florida,likeotherUSstates,isalsoinatransitionstageofhowtobestplantomakethe
shift from traditionalenergy resources to cleantech1.However, theproductionof renewable
energy is currently more cost intensive than conventional energy production methods with
using fossil fuels that are more readily accessible and integrated into the current energy
market,althoughcertainrenewableenergyfieldssuchasphotovoltaicarequicklyapproaching
gridparityinsomepartsofthecountry.Assuch,inordertoincreasetheamountofrenewable
energy sources, incentives and subsidiesmustbeused. Sales taxexclusionsonmaterials for
hydrogencars,investmenttaxcreditsandvariousothermonetaryincentivesareusedtoattract
moreactivitytothemarketofrenewableandcleanenergy.
Totrulyestimatetheimpactofanyregulationonenergyproduction,allpossibleaspects
mustbeexamined.Thepolicyenactedwilldictatehowthemarketresponds.Thelimitationof
any system trying to increase investmentandactivity in the renewableenergy sector ishow
welltheyaresupportedbymarketpowers.Thepossibleoptionsatpresentaretocontinueon
thepathofmonetaryand tax incentives,createa stateRenewablePortfolioStandard (RPS),
enactaFeedinTariff2,andvariousotherprograms.Eachoneoftheseoptionsisspecializedto
varyingtechnologiesandoutcomes.
This study aims to provide a framework or roadmap for the transition to clean and
renewable energy sources, and energy efficiencies, in line with market driven forces. We
conduct a comprehensive review of almost all existing statutory incentives supporting the
deploymentofenergyefficiencyandrenewableenergy inFlorida followedbyadiscussionof
effective mechanisms to overcome barriers to commercialization and project finance, and
finally, with an analysis of the economic impact of a state renewableportfolio standard. In
1Cleantechdefinition:knowledgebasedproductsandservicesthatoptimizetheuseofnaturalresourceswhilereducingecologicalimpactand
adding economic value through lowered costs or improved profitability. See further description on page 10, and in the Barriers toCommercialization sectionofthisreport.2 The City ofGainesville has implemented a FeedInTariff.Other states include Hawaii, Illinois, Indiana, Maine,Massachusetts, Michigan,
Minnesota,NewJersey,NewYork,Oregon,RhodeIsland,Virginia,WashingtonandWisconsin.(http://www.nrel.gov/docs/fy09osti/45549.pdf)
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conclusion,thisprojectaimstoprovideanecessaryfoundationorbaselineforthenextstepin
renewable energy and energy efficiency strategic planning and implementation, along with
somesuggestionsandrecommendations.
The report begins with providing an overview of the definition and description of
renewableenergyandcleantech,ingeneral,withabriefsectiononthecurrentstatusofclean
energyinFlorida.Afterthisintroductorysection,themainbodyofthereportisthenstructured
intofoursections.
ThesecondsectionoutlinesthecurrentincentivesavailableinFloridaandattheFederal
Government level, for the promotion of renewable energy and energy efficiency. In
consultation with the Florida Energy and Climate Commission and Enterprise Florida, we
summarizeFloridascurrentcleanenergyincentives.Welistalleconomicincentivesthataffect
the clean energy sector in Florida along with details about State funds allocated to each
incentive and the incentives annual use. Additionally, we briefly cover each incentives
interaction with similar Federal incentives. We then evaluate the success of the States
investmentinthecleantechsectorandanalyzetheintendedeconomicimpactofeachincentive
program.Weaimtobenchmarktheperformance/impactagainstsimilartypesofprogramsor
programs with similar objectives in other jurisdictions or analogous industries/sectors. In
Florida, there are broad based economic development programs that prequalify the clean
energysector. Weanalyzetheseprogramsandverifytheireffectivenessastohowwellthey
catertocleansectorcompanies.Wealsoidentifyandincludefederal,stateandlocalincentives
targetingthedeploymentofenergyefficiencyand renewableenergyproducts.Attheendof
thissection,wedevelopalistofFloridasincentivesthattargetenergyefficiencyanddemand
sidemanagement. Inorder togiveacomprehensiveandmoreholisticpicture,wecover the
FloridaEnergyEfficiencyandConservationAct(FEECA),theprogramsofferedbylocalutilities,
cities,andcounties,federalincentivesforthedeploymentofenergyefficiencyandrenewable
energyproducts.
Thethirdsectionofthereportcoversbarrierstocommercializationandprojectfinance
forcleantechprojects inFlorida. In thissection,we identifyFloridasuniversity,businessand
financialresourcesandlistbarrierstocommercializingintellectualpropertyanddeployingclean
technologybusinesses.Intheensuingdiscussion,weincorporateanalysisofstagesofresources
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and capital necessary to progress business from inception to fullscale deployment.
Additionally,we identifyanddiscuss theavailabilityof resources foreachstage inFlorida. In
consultationwithFESC,stateincubationnetworks(Public&Private),technologytransferoffices
and early stage industry partnership programs in Florida, we aim to identify and list the
resources that are available to transition clean technology intellectualproperty (IP) into the
market. This section also provides some successful models from other states and aims to
identifychallengesthatareuniquetoFloridaregardingprojectfinancing.
Thefourthsectionofthereportdealswithregulatorychanges.Weprovideananalysis
of the potential economic impact of a renewable portfolio standard (RPS) including aspects
suchasjobcreationinFlorida,growthinstateGDP,andothereconomicfactors.Inaddition,we
provideacomparisonbetweenvarious stateprograms includingabreakdownofRPSamong
differentrenewableenergyindustries/sectors.
Thefinalsectionofthereportencompassestheconclusionsandrecommendations. In
thissection,weprovidesuggestionsandrecommendationstotheFloridaEnergyandClimate
Commission (FECC) in a series of pros and cons in key areas: 1)whether to renew existing
incentives 2) how to target sunsetting incentives to the cleantech area 3) a portfolio of
programs to decrease barriers to cleantech commercialization and project finance, and; 4)
whether to pursue an RPS for Florida and; 5) suggest to the FECC effective demand side
incentives.
DefinitionsofRenewableEnergy,CleanEnergy,CleantechandEnergyEfficiency
RenewableEnergyinFlorida
According to the Florida Legislature, FL HB 7135 defines renewable energy (with
alternativeenergy)as:
"Electrical,mechanical,orthermalenergyproducedfromamethodthatusesoneormoreofthefollowingfuelsorenergysources:ethanol,cellulosicethanol,biobutanol,biodiesel,biomass,biogas,hydrogenfuelcells,oceanenergy,hydrogen,solar,hydro,wind,orgeothermal.Biomassmeansapowersourcethatiscomprisedof,butnotlimitedto,combustibleresiduesorgasesfromforestproductsmanufacturing,waste,byproducts,orproducts fromagriculturalandorchard crops,wasteorcoproductsproductsfrom livestockandpoultryoperations,wasteorbyproductsfromandfood
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processing, urban wood waste, municipal solid waste, municipal liquid wastetreatmentoperations,andlandfillgas."3
CleanEnergyandCleantech
TheRenewableEnergyTrustdefinescleanenergyas"energy from renewablesources
suchasbiomass,wind,orsolarpower.Thegoalofcleanenergyistohavealowenvironmental
impact, with low or zero emissions, and minimal impact on the physical surroundings.
Hydropowercanbedefined as clean energydue to zero emissions,but today'shydropower
oftenhassubstantial impactsonaquaticecosystems.Wasteburningandwoodburningplants
thatcaptureemissionscanbecleanenergygenerators.Fossilfuelsdonotprovidecleanenergy
becauseoftheiremissionsandenvironmentalimpacts."4
From the Japan Video Encyclopedia, clean energy is "the solar energy, wind power,
geothermal energy and coal technology projects underscores Japan's enthusiasm for clean
energyandreducedemissionsofcarbondioxide."5
AccordingtoJesperLindgaardChristensen,6thereseemstobemoreconsensusaround
thetermcleantechnologyorcleantechtoembraceknowledgebasedproductsandservices
that optimize the use of natural resources while reducing ecological impact and adding
economic value through lowered costs or improved profitability. In other words, clean
technologiesare inherentlydesigned to (1)provide superiorperformanceat lowercosts; (2)
reduceoreliminatenegativeecological impact;and(3) improvetheproductiveuseofnatural
resources. Cleantech spans many industries, from alternative forms of energy generation
(including clean energy i.e., renewable and alternative energy technologies) to water
purificationtomaterialsefficientproductiontechniques.
Lookingattheimpactontheenvironment,GreenIdeasdefinesrenewableenergyasan
energy source that, from an Earth perspective, is continually replenished. The renewable
resourcecanbereplenishedatarateequaltoorgreaterthanitsrateofdepletion;i.e.,solar,
wind,geothermalandbiomassresources.7GreenIdeasprovidesashortcutdefinitionofclean
3FloridaLegislatureFLHB7135CHAPTER2008227
4http://masstech.org/cleanenergy/energy/glossaryAtoC.htm
5http://www.mofa.go.jp/j_info/japan/video/pamph.html
6JesperLindgaardChristensen,GreensRushIn?:CleantechVentureCapital InvestmentsProspectsorHype?June2009.SeealsoNewYork
CityInvestmentFund:Cleantech:ANewEngineofEconomicGrowthforNewYorkState,page3,January2007;andForumfortheFuture,2006:CleanCapitalFinancingcleantechnologyfirmsintheUK.7TheinclusionofNuclearenergyinthecleanenergydefinitioniscontroversial.Cleanenergyisenergythatisproducedwithoutburningfossil
fuels. Examples include wind, hydroelectricity and, controversially, nuclear power. The reason for this definition is that Nuclear energy
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energy that summarizes the two points: "energy created from renewable sources with low
environmentalimpact."8
Fromthesedefinitions,cleanenergymusthavethefollowingtwocharacteristics:
1 Ithastoberenewable.
2 Ithasloworzeronegativeimpactontheenvironment.
Thismeansthatitissufficientfortheenergysourcetohavelowenvironmentalimpact
to be considered a clean energy source. However, it is not a sufficient condition to be
determined a renewable resource in order to be categorized as clean energy.9 In order to
provideanoverviewof those industries thatare related tocleanenergy, the following table
provides a detailed list of clean energy industries and associated North American Industrial
ClassificationSystem(NAICS)codes.
Table1.CleanEnergyRelatedIndustriesListofNAICSIndustry NAICSCode NAICSTitle Includes
Renewableenergy
generation
wind,solar,tidal 221119 OtherElectric/PowerGeneration solar,tidal,wind,other
geothermal 221330 SteamProduction geothermalsteamproduction
wasteincineration 562213 SolidWasteCombustors&Incinerators
biomass 321113 Sawmills cogenerationplantssellingelectricity
322110 PulpMills
322121 PaperMills 100%recycledpaper,mnfwithGreenEcertifiedrenewableenergy
fuelcells/other 335999 AllOtherMiscellaneousElectricalEquipmentManufacturing
fuelcellsandotheralternativeelectricalsources
Renewableenergysystems
transmission/distribution 221122 ElectricPowerDistribution
Renewableenergysystems
supportfunctions
design 541712 R&DinPhysical,EngineeringandLifeSciences
engineer 541330 EngineeringServices engineeringconsulting,design,and/orservices
finance 522110 CommercialBanking
522120
Savings
Institutions
522130 CreditUnions
522190 OtherDepositoryCredit
523910 MiscellaneousIntermediation venturecapitalcompanies,investment
produces no greenhouse gas emissions but it still uses uranium (and sometimes plutonium) which is a natural resource like gas and oil.(http://www.ehow.com/about_4579290_nuclearenergyrenewablenonrenewable.html)8http://www.egreenideas.com/glossary.php?group=r
9 Nuclear energy sector will not be included in our overall analysis in this report for the following reasons: despite the absence of
emissions,nucleargeneration,ingeneral,stillproducesradiationasitsbyproduct.Also,intermsoftheCleantechdefinition(s)prevalentinthecurrent Cleantech literature,nuclear power isoftennot included. In addition, for thepurposeof thisproject,detaileddataon renewableenergy/cleanenergywasmorereadilyavailablethandetaileddataonotherCleantechsectors.
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Industry NAICSCode NAICSTitle Includes
clubs
Renewableenergysystems
construction
237130 PowerandCommunicationLine/Structures
alternativeenergystructureconstruction
238221 ResidentialPlumbing,Heating,AC solarheatinginstallation
238222 NonresidentialPlumb,HeatingAC solarheatinginstallation
238151 ResidentialGlassandGlazing
238152 NonresidentialGlassandGlazing
238161 ResidentialRoofing
238162 NonresidentialRoofing
238171 ResidentialSiding
238172 NonresidentialSiding
238211 ResidentialElectrical
238212 NonresidentialElectrical
238311 ResidentialDrywall/Insulation
238312 NonresidentialDrywall/Insulation
Biofuels
325199 AllOtherBasicOrganicChemicalMnf
100%biodieselproduction
324199 AllOtherPetroleumMnf purchasingpetrolandblendingwith100%vegetableoiltomakeblend
111110 SoybeanFarming
111120 Oilseed,ExceptSoybean
111150 CornFarming
Energyefficiency
development 541712 (R&Dseeabove)
541420 IndustrialDesignServices
Energyefficiency
335110
Electric
Lamp
Bulb/Parts
Mnf
manufacturing 335121 ResidentialElectricLightingFixtureMnf
Source: Initial Washington Green Economy Industry List E2SHB 2815 Implementation Team May 16, 2008.http://www.labormarketinfo.edd.ca.gov/contentpub/greendigest/wanaicsindustrylist.pdf.
EnergyEfficiency
Inaddition to clean and renewableenergy, theotherareaof interest in this study is
energy efficiency. It can be simply defined as the efficient use of energy. An operational
definitioncanbegivenasUsinglessenergytoprovidethesameservice. 10Itshouldbenoted
thatthereareanumberofperspectivesregardingthedefinitionofenergyefficiency.TheEIA
heldaseriesofworkshopsandfoundthattheparticipantdefinitioncanbethoughtoffromtwo
perspectives:either(1)aserviceperspectiveor(2)amechanistic,strictintensity,perspective.11
Someviewenergyefficiencyasbeingverydifferentfromenergyconservation,andthatenergy
10BerkeleyLaboratories,2009.http://eetd.lbl.gov/ee/ee2.html
11http://www.eia.doe.gov/emeu/efficiency/conf_papers.htm#Energy%20Information%20Administration%20Energy
Efficiency%20Workshop%20Summary%20Papers
http://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdfhttp://www.labormarketinfo.edd.ca.gov/contentpub/GreenDigest/WA-NAICS-Industry-List.pdf8/4/2019 Eenergy Efficiency & Clean Energy
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conservationrelatesprimarilytobehavior.Peoplewithasocialviewofenergyefficiencymight
considertheenergysavingstobeanefficiencygain,whilethosewithamoretechnicalviewof
efficiencywouldclassifythesavingsasconservationratherthanefficiency improvement.12An
example of energy conservation is turning off the light when the room is unoccupied.13
Examplesofenergyefficiencyforthepurposeofourstudyinclude:
1. Marketing,educationandoutreachbigoverlapwithconservationmessage.
2. Lightingreplacingbulbsandlightingsystemswithefficientmodels.
3. Heating, ventilation and air conditioning system (HVAC) retrofit, repair and
replacement.
4. Energyefficientnewconstruction incorporatingenergyefficientdesignconceptsand
thelatestinnovations.
EconomicCostsandBenefitsofCleanEnergyinFlorida
EnergysupplyandproductionisofcriticalimportanceformostFloridians.Florida,and
thenationingeneral,areconcernedwiththestatusofcurrentenergyreserves;basedprimarily
on nonrenewable resources (e.g., fossil fuel (coal and oil) and nuclear power). The
diversification of the nation's energy mix to include renewable resources helps improve: 1)
energy reliability and independence from foreign production 2) greenhouse gas emissions
and/orglobalwarming3)nationalsecurityand;4)longtermenergypricestability.Inaddition
tocleanandrenewableenergy,theotherareaofinterestinthisstudyisenergyefficiency.
Thissectionhighlightsrenewableoralternativeenergytechnologiescurrentlyavailable
inFlorida.ThefollowingtableprovidesasummaryofrenewabletechnologiescostsforFlorida,
asof2009.
12http://www.eia.doe.gov/emeu/efficiency/definition.htm
13Furthermore,Mostofwhatisdefinedasenergyefficiencyisinfactenergyintensity:"Energyintensityistheratioofenergyconsumptionto
somemeasureofdemand forenergy serviceswhatwe callademand indicator.However,atbest,energyintensitymeasuresarea roughsurrogate forenergyefficiency. This isbecause energy intensitymaymask structural andbehavioral changes thatdonot represent "true"efficiencyimprovementssuchasashiftawayfromenergyintensiveindustries."(http://www.eia.doe.gov/emeu/efficiency/definition.htm)
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Table2.RenewableTechnologyCostsforU.S.
Technology
TotalOvernightCost
($/kW)
VariableO&MCost
($mills/kWh)
FixedO&MCost
($/kW)
SolarPV 6,038 0.00 11.68SolarThermal 5,021 0.00 56.78
Biomass 3,766 6.71 64.45
Landfill 2,543 0.01 114.25
Wind 1,923 0.00 30.30Wind(offshore) 3,851 0.00 89.48
Geothermal 1,711 0.00 161.64Hydropower 2,242 2.43 13.63
AdvancedNuclear 3,318 0.49 90.02Source:EnergyInformationAdministration.March2009.AssumptionstotheAnnualEnergyOutlook2009.
Table3.RenewableTechnologyEstimatedEconomicImpactsforFloridaTechnology GSP($Millions) Jobs Income($Millions)
Solar N/A 7.4130/MW N/A
Biomass 1,149* 17,682 687*
Wind N/A 0.712.79/MW N/ASources: Southern Bioenergy Roadmap, Southeast Agriculture & Forestry Energy Resources Alliance (SAFER) UF/IFAS publication:
http://www.saferalliance.net. Economic Impacts of Extending Federal Solar Tax Credits, Solar Energy Research and Education. Foundation(SEREF),http://www.seia.org/galleries/pdf/Navigant%20Consulting%20Report%209.15.08.pdf. *In2007$.
Floridahastwicethesolar insolationofthe largestPVmarketintheworld,Germany.14
ThecapacityforsolarpowerinFloridaisamongthehighestinthecountry.Solarsystemshave
highercapitalstartupcoststhansomeothertechnologies,butthelackoffuelneedsandvery
lowO&Mcostsandrequirementscanoffsetthehigherconstruction (capital)costs.ThesePV
systemsareestimatedtocreateupto30directjobsperMegawatt(MW), leadingto22,500
114,000directjobsthrough2020,dependentontheexpansionofsolaroutput. 15AUSAToday
study found that when consumers were asked about powering their homes with electricity
fromsolarpanels,2%alreadyhadthem,andabout43%oftherespondentsthought itwould
happeninlessthanfiveyears.16
Being the leader in biomass feedstock, Florida has the ability to attract numerous
biomassprojectswith instatefuels,avoidingtheneedandcostofshipping infeedstockfrom
elsewhere. Solid biomass plants can be powered by organic material such as residual
production (wood chips from logging, wheat straw, etc) or purpose grown crops. Florida
currentlyranksfirst inbioenergyfeedstockofsugarcaneandcitrus,forestresiduesandurban
woodwaste.17TheSAFER2007studyreportedthatbiomassprojectsgenerated$1.15billionin
14http://www.greentechmedia.SeeFaireStudy.
15VoteSolarInitiative.www.votesolar.org
16USAToday,July15,2009,citingSolarSurveyStudybyCSAInternational.
17BioenergyatUF/IAFSPowerPoint.August12,2008.MaryDuryea
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output and over 17,500 jobs in Florida18. Longerterm renewable energy sources include
offshorewind,oceancurrentandalgalharvesting forbiomassfeedstockandfuelproduction.
Researchiscurrentlybeingconductedintheseareas,amongothers,inFlorida.
Nuclearenergy isoneof the alternativeenergies inFlorida.The threenuclearplants
(fivetotalunits)inFloridaproducedacombined2.69GWinMarchof2009.19Thisaccountsfor
4%ofthestatestotalenergyconsumption.ProjectedupgradesatthefacilitiesinLevyCounty
willincreaseProgressEnergyFloridasnucleargenerationby2.38GW.FloridaPowerandLight
isprojected toadd2.61GWofnuclearpowergenerationwithupgradesat theSt. Lucieand
TurkeyPointfacilities.20.AdvancednuclearhasavariableO&Mcostof$0.49/kWhandaFixed
O&Mcostof$90.02/kWh.Theaveragecapitalcostis$90.51.21
Given the volatility of recent fossil fuel prices, Floridians are becoming increasingly
aware of the costs of energy consumption in the state. By establishing new clean power
generation systems and investing in demand side management (energy efficient) programs,
utilities(suppliers)andconsumerswillnotonlylessenourimpacttotheenvironmentbutalso
helpwithdampeningFloridas increasingenergydemand. Innovation, investment,andenergy
efficient conservation can help propel the state into becoming a prosperous, selfsufficient
providerofitsowncleanpower.
On June 25, 2008, Governor Charlie Crist signed into law, House Bill 7135, which
requires the Public ServiceCommission todevelop aRenewablePortfolio Standard (RPS)by
February1,2009.Eachelectricityprovider,exceptmunicipalutilitiesand rural cooperatives,
mustsupplyanasyetunspecifiedamountofrenewableenergytoitscustomers.AlthoughHB
7135doesnot specify theRPS target,GovernorCristsExecutiveOrder07127 from July13,
2007 requires utilities to produce at least 20 percent of their electricity from renewable
resources.22However,todate,noRPStargetpolicyhasbeenpassedbytheFloridalegislature.
Therenewableenergy incentives inFloridaencompasscorporate taxcredits,salestax
exemptions,localrebateprograms,loans,industrysupportsandproductionincentives.Florida
18SouthernBioenergyRoadmap,SoutheastAgriculture&ForestryEnergyResourcesAlliance(SAFER)UF/IFASpublication:
http://www.saferalliance.net.19http://tonto.eia.doe.gov/state/state_energy_profiles.cfm?sid=FL#overview
20PersonalCommunication.TedKury,PublicUtilityResearchCenter.August18,2009
21EIAAssumptionsReport:2009.http://www.eia.doe.gov/oiaf/aeo/assumption/index.html.
22http://www.flsenate.gov/data/session/2008/House/bills/billtext/pdf/h713503er.pdf,andtheExecutiveOrder07127:
http://www.dep.state.fl.us/ClimateChange/files/2007.07.13_eo_07127.pdf
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does not currently have programs for personal income tax, grants and bonds. The energy
efficiencyincentivesincludeLocalRebatePrograms,grants,andloans.
TheDistrictofColumbiaand24stateshaveanRPSpolicy inplace. Fiveotherstates,
NorthDakota,SouthDakota,Utah,Virginia,andVermont,havenonbindinggoalsforadoption
ofrenewableenergy insteadofanRPS.Mostofthestatessetthestandards inpercentageof
energy to be generated by renewable sources. These percentages ranged from 8% in
Pennsylvaniato40%inMaine,withthemajorityofthestatesinthe20%range.TexasandIowa
set their renewable energy production goals by Megawatts to be generated by renewable
resources.ThetargetyeartoattainthedesiredRPSdifferswidelybystate.VermontandNew
Yorkstargetyearis2013,whereasCaliforniatargeted2030toattainitsRPSgoals.SeeTable28
inAppendixA.
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CurrentIncentivesMixAuthors:
Dr.JulieHarrington,Director,FSUCEFAandFSUIESESmember
Dr.BassamAwad
ZafarSiddiqui
DavidGlassner
TedKury,UFPURC
This section outlines the current incentives available in Florida and at the Federal
Government level, for the promotion of renewable energy and energy efficiency. In
consultation with the Florida Energy and Climate Commission and Enterprise Florida, we
summarize Floridas current clean energy incentives in this section and list all economic
incentivesthataffectthecleanenergysector inFlorida. Inaddition,we includedetailsabout
thetotalamountofStatefundsallocatedtoeachincentive,andtheincentivesannualuse.
ThissectionhighlightsthestateincentivesinteractionwithsimilarFederalincentives.In
addition,thissectionalsoincludesanevaluationofthestateincentivestargetingthecleantech
sectorandananalysisoftheintendedeconomicimpactofeachincentiveprogram.Weaimto
benchmark the performance or impact against similar types of programs or programs with
similarobjectivesinotherjurisdictionsoranalogousindustries/sectors.
InFlorida,therearebroadbasedeconomicdevelopmentprogramsthatprequalifythe
cleanenergysector.Inordertogiveacomprehensiveandamoreholisticperspective,wecover
FloridaEnergyEfficiencyandConservationAct(FEECA),theprogramsofferedbylocalutilities,
cities, and counties, and federal incentives for the deployment of energy efficiency and
renewableenergyproducts.
InventoryofEconomicIncentivesThatImpacttheCleanEnergySectorinFlorida
Government incentives (both State and Federal) can be categorized into two basic
categories; up front incentives and performance based incentives. This section will look at
currentFloridarenewableenergyincentives.Thetypesofincentivesthatwillhaveanimpacton
theCleanEnergySector inFloridaareshown inTable4.Therearevarioustypesof incentives
that are directed at different technologies and sectors of the economy. The Corporate Tax
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Creditfrom theRenewable Energy Production Program andRenewable Energy Technologies
InvestmentprogramaredirectedattheCommercialsectors.
The Renewable Energy Production Tax Credit applies to solar thermal electric,
photovoltaics,wind,biomass,hydroelectric,geothermalelectric,CHP/Cogeneration,hydrogen,
tidalenergy,waveenergyandoceanthermaltechnologies.Theincentiveamountis$0.01/kWh
ofelectricityproducedfrom1/1/2007to6/30/2010.Whilethereisnoindividualmaximum,no
entitywill receivemore than$5millionper fiscal year.TheRenewableEnergyTechnologies
Investment Tax Credit is aimed at renewable fuel vehicles, fuel cells, hydrogen, refueling
stations,ethanolandbiodieseltechnologies.Thecreditcovers75%ofallcapitalcostsincluding
Operations and Maintenance (O&M) and Research and Development (R&D). The maximum
incentiveamountvariesbyprojectandtheexpirationdateis6/30/2010.
The Renewable Energy Property Tax Exemption focuses on incentives for the
Commercial, Industrial,andResidentialsectors.Theprogramoffers incentivesforsolarwater
heaters,photovoltaics,wind,geothermalheatpumps,anddirectusegeothermaltechnologies.
Itoffersa100%exemptionfrompropertytaxonunitsinstalledafter1/1/2009.
TheSolarEnergySystemsEquipmentSalesTaxExemptionofferscompleteexemption
onsalestaxforsolarwaterheaters,solarspaceheaters,photovoltaics,andsolarpoolheating
within the sectorsofCommercial,Residential,andGeneralPublic/Consumer.TheRenewable
Energy Equipment Sales Tax Exemption applies to the same sectors, but only to the
technologies of renewable fuel vehicles, fuel cells, other alternative fuel vehicles, refueling
stations,ethanol,andbiodiesel.Theexpirationdateforthisprogramis7/1/2010.
Florida alsooffers a state grantprogram, theRenewableEnergyTechnologiesGrants
Program,directedatcommercial,nonprofit,school, localgovernmentandutilitysectorswith
varied incentive amounts. The grants are available for the technology development in heat
recovery,solarwaterheating,solarspaceheating,solarthermalelectric,solarthermalprocess
heat,photovoltaics,wind,biomass,hydroelectric,geothermalheatpumps,CHP/Cogeneration,
hydrogen, directuse geothermal, solar pool heating, tidal energy, wave energy and ocean
thermal.
TheSolarEnergySystem IncentivesProgram isastaterebateprogram forsolarwater
heaters,photovoltaicsandsolarpoolheating.Therearemanyrestrictionsonsizerequirements
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fortherebateandvaryingmaximumawardlevelsasshowninTable4.Commercial,Residential,
Nonprofit, Schools, Local Government, Federal Government, MultiFamily Residential and
Institutional sectorsare coveredunder thisprogram.Theexpirationdate for thisprogram is
6/20/2010.
Table4.InventoryofIncentivesThatImpacttheCleanEnergySectorinFloridaIncentiveName Incentive
Type
Eligible
Technologies
Applicable
Sectors
Amount Maximum
Incentive
Eligible
SystemSize
Expiration
Date
Capital investmenttax credit (FloridaStatutes220.191)
CapitalInvestmentTaxCredit
Solar panelmanufacturingfacility
Industrial,Commercial
100%, 75%and 50% fora qualifyingproject whichresults in acumulativecapitalinvestmentofat least$100,between$50$100 million,and between
$2550$respectively.
100% ofthequalifyingproject
Renewable EnergyProduction TaxCredit(Florida Statutes220.193)
CorporateTaxCredit
Solar ThermalElectric,Photovoltaics,Wind, Biomass,Hydroelectric,GeothermalElectric,CHP/Cogeneration,Hydrogen, TidalEnergy, WaveEnergy, OceanThermal
Commercial $0.01/kWhfor electricityproducedfrom1/1/2007through6/30/2010
Noindividualmaximum;State maxof $5million perfiscal yearfor allcredits
6/30/2010
Renewable EnergyTechnologiesInvestment TaxCredit (FloridaStatutes220.192)
CorporateTaxCredit
Renewable FuelVehicles, Fuel Cells,Hydrogen,RefuelingStations, Ethanol,Biodiesel
Commercial 75% of allcapital costs,operationandmaintenancecosts, andresearch anddevelopmentcosts
Varies 6/30/2010
Renewable EnergyProperty TaxExemption (FloridaStatutes196.175)
PropertyTaxExemption
Solar Water Heat,Photovoltaics,Wind, GeothermalHeatPumps,DirectUseGeothermal
Commercial,Industrial,Residential
100%exemption(for unitsinstalledafter1/1/2009
Solar EnergySystemsEquipment SalesTaxExemption(Florida
Statutes212.08(7)(hh))
Sales TaxExemption
Solar Water Heat,Solar Space Heat,Photovoltaics, SolarPoolHeating
Commercial,Residential,GeneralPublic/Consumer
Allsalestax
Renewable EnergyEquipment SalesTaxExemption(FloridaStatutes212.08(7)(ccc))
Sales TaxRefund
Renewable FuelVehicles, Fuel Cells,Other AlternativeFuel Vehicles,Refueling Stations,Ethanol,Biodiesel
Commercial,Residential,GeneralPublic/Consumer
Allsalestax 7/1/2010
Renewable EnergyTechnologiesGrants Program(Florida Statutes
StateGrantProgram
Heatrecovery,SolarWater Heat, SolarSpace Heat, SolarThermal Electric,
Commercial,Nonprofit,Schools, LocalGovernment,
Varies 6/30/2010
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IncentiveName Incentive
Type
Eligible
Technologies
Applicable
Sectors
Amount Maximum
Incentive
Eligible
SystemSize
Expiration
Date
377.804) Solar ThermalProcess Heat,Photovoltaics,Wind, Biomass,Hydroelectric,GeothermalElectric,Geothermal Heat
Pumps,CHP/Cogeneration,Hydrogen, DirectUse Geothermal,Solar Pool Heating,Tidal Energy, WaveEnergy, OceanThermal
Utility
Solar EnergySystem IncentivesProgram (FloridaStatutes377.806)
StateRebateProgram
Solar Water Heat,Photovoltaics, SolarPoolHeating
Commercial,Residential,Nonprofit,Schools, LocalGovernment,StateGovernment,Fed.Government,MultiFamilyResidential,Institutional
PV: $4/wattDC, SolarWaterHeaters:Residential $500; Nonresidential &Multifamily $15per1,000BTU/day,Solar PoolHeaters:$100
PV:Residential $20,000;Nonresidential $100,000,SolarWaterHeaters:Residential $500;Nonresidential& Multifamily $5,000,Solar PoolHeaters:$100
PV:2kWandlarger, Solarwaterheaters mustprovide atleast50%ofabuildingshotwaterconsumption
6/20/2010
http://www.dsireusa.org/incentives/index.cfm?State=FL
Insummary,oftheseeightprograms,thefollowingfiveprogramsarescheduledtosunsetJune
30,
2010:
RenewableEnergyProductionTaxCreditFloridaStatutes220.193
RenewableEnergyTechnologiesInvestmentTaxCreditFloridaStatutes220.192
RenewableEnergyEquipmentSalesTaxExemptionFloridaStatutes212.08(7)(ccc)
RenewableEnergyTechnologiesGrantsProgramFloridaStatutes377.804
SolarEnergySystemIncentivesProgram(SolarRebate)FloridaStatutes377.806
TotalStateFundsAllocatedtoEachIncentiveandtheIncentivesAnnualUse
As shown in the following table(s), for fiscal year 200910, a total of $20 million is
allocatedtotheincentivesforcleanenergysector.InFlorida,$11millionisearmarkedforthe
RenewableEnergyTechnologyInvestmentTaxCredit.Thiscanbeappliedto75%ofallcapital
costs,operationandmaintenancecostsandresearchanddevelopmentcosts.However,upper
caps are defined as $3 million in connection with hydrogenpowered vehicles and fueling
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stations;$1.5millioninconnectionwithaninvestmentincommercialstationaryhydrogenfuel
cellsinthestate;and$6.5millioninconnectionwithaninvestmentintheproduction,storage
anddistributionofbiodieselandethanol.
The Renewable Energy Production Tax Credits account for $5millionof thebudget
during 20092010. This credit is available to encourage the development and expansion of
facilitiesthatproducerenewableenergy inFlorida.Thiscreditwillbeequalto$0.01foreach
kilowatthourofelectricityproducedandsoldbythetaxpayertoanunrelatedpartyduringa
giventaxyear.Thereisanupperlimitof$5millionperstatefiscalyearperapplicant.
The third major category of incentives is the Renewable Energy Technologies,
Machinery,Equipment,andMaterialSalesandUseTaxRefund,whichaccountfor$4millionof
budgetary allocation. Businesses may apply for a refund of sales and use taxes paid on
equipment,machinery,andothermaterials forrenewableenergytechnologies.There isa$2
million annual statewide cap for hydrogenpowered vehicles, materials incorporated into
hydrogenpowered vehicles, and hydrogen fueling stations. For materials used in the
distribution of biodiesel and ethanol, including fuelling infrastructure, transportation and
storage,thereisanannualstatewidecapof$1million.23
As outlined in the following Table 5, a total of about $16.23 Million for (out of a
potential$20Million)isstillunusedinprogramfundingintherenewableenergytaxcreditand
salesandusetaxcategories.24
Sometax incentiveshavebeenusedmorethanothers. TheProductionTaxCredithas
beenconsistentlyusedandthebiofuelinfrastructurecreditisshowingincreasedconsumption,
butthehydrogenvehicle incentivehasbeenbarelyused. The legislatureshouldrevieweach
technology granted a tax incentive and determine whether the tax code is the proper
instrument to catalyze that market. If Florida elects to support precommercially deployed
technologies, then the state shoulddesign incentives targeted to those technologiesneeds.
The data suggests there are state dollars allocated to these incentives that might be more
productively used. In addition, it would be beneficial to examine the current method of
informationdissemination tothepublicregarding thestate incentiveprogram, toensure the
broadestcoverage,applicationrate,anduseofcurrentlyavailableincentives.
23http://www.bdb.org/clientuploads/PDFs/CleanEnergyIncentives.pdf
24PersonalCommunicationwithEOGstaffmemberAprilGroover,February22,2010
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Table5.RemainingBalancesasofJanuary29,2010ofRenewableTaxCredits/SalesTaxRefundsRenewableEnergyProductionTaxCredit
2008 2009 2010 2011
Appropriation $5,000,000.00 $5,000,000.00 $5,000,000.00 $5,000,000.00
FundsExpended $1,925,730.00 $1,676,830.00 $0.00 $0.00
Balance $3,074,270.00 $3,323,170.00 $5,000,000.00 $5,000,000.00
PercentofFundsExpended 38.51% 33.54% n/a n/a
RenewableEnergyTechnologiesInvestmentTaxCredit
Hydrogen(Vehicles) FY0607 FY0708 FY0809 FY0910
Appropriation $3,000,000.00 $3,000,000.00 $3,000,000.00 $3,000,000.00
FundsExpended $0.00 $0.00 $0.00 $1,547,586.75
Balance $3,000,000.00 $3,000,000.00 $3,000,000.00 $1,452,413.25
PercentofFundsExpended 0.00% 0.00% 0.00% 51.59%
Hydrogen(StationaryFuelCells) FY0607 FY0708 FY0809 FY0910
Appropriation $1,500,000.00 $1,500,000.00 $1,500,000.00 $1,500,000.00
FundsExpended $0.00 $0.00 $1,500,000.00 $1,500,000.00
Balance $1,500,000.00 $1,500,000.00 $0.00 $0.00
PercentofFundsExpended 0.00% 0.00% 100.00% 100.00%
Biodiesel&EthanolInfrastructure FY0607 FY0708 FY0809 FY0910
Appropriation $6,500,000.00 $6,500,000.00 $6,500,000.00 $6,500,000.00
FundsExpended $3,347,482.62 $4,519,660.30 $2,473,456.24 $0.00
Balance $3,152,517.38 $1,980,339.70 $4,026,543.76 $6,500,000.00
PercentofFundsExpended 51.50% 69.53% 38.05% 0.00%
RenewableEnergyEquipmentSalesTaxExemption
Hydrogen(Vehicles) FY0607 FY0708 FY0809 FY0910
Appropriation $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00
FundsExpended $0.00 $0.00 $0.00 $0.00
Balance $2,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00
Percent
of
Funds
Expended
0.00%
0.00%
0.00%
0.00%
Hydrogen(StationaryFuelCells) FY0607 FY0708 FY0809 FY0910
Appropriation $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00
FundsExpended $0.00 $0.00 $219,004.98 $235,176.90
Balance $1,000,000.00 $1,000,000.00 $658,944.91 $764,823.10
PercentofFundsExpended 0.00% 0.00% 21.90% 23.52%
Biodiesel&EthanolInfrastructure FY0607 FY0708 FY0809 FY0910
Appropriation $1,000,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00
FundsExpended $0.00 $3,982.60 $41,349.06 $482,726.69
Balance $1,000,000.00 $996,017.40 $958,650.94 $517,273.31
PercentofFundsExpended 0.00% 0.40% 4.13% 48.73%
Concerning the companies that have engaged in theSEP tax credit and sales tax
programfromFY0610,thefollowingobservationsweremade:
Biodiesel and Ethanol: Almost allof the tax credit funds areusedbyone company
Marathon Petroleum. It is unknown what innovations have been produced by this
company to date. The sales taxprogram has more widespread usage in small
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quantities.FirstCoastEnergyLLPusedaboutaquarterofthefundinginFY20092010.
Kinder Morgan Liquids Terminals LLC and Central Florida Pipeline each used abouta
tenthofthefundingduringthesametimeperiod.
Hydrogen(Cells):MetroPCSFloridaLLCistheonlycompanyusingboththecreditsand
the sales tax program. They perhaps were unaware of the tax credit and sales tax
offeringsfromearlier,inFY20062008,buthavesinceusedallthetaxcreditsavailable
andpartofthesalestaxexemption.Itappearsthatonecompanyisusingthemajority
ofthefundshence;itisassumeditisdirectedtowardsausabletechnology.Theresults
ofthetechnologygeneratedbytheseincentiveofferingsareunknownatthistime.
Hydrogen(Cars):UnitedNaturalFoodistheonlycompanyusingthetaxcredits.
Since 2006, The Renewable Energy Technology Grant Program has distributed $42.5
milliondollars. Grantsareattractive to industrybecausetheapplicationprocess isrelatively
straightforwardandtheawardsareflexible.Althoughpopular,thestatemaywanttoconsider
selfsustaining mechanisms such as: a loan program, performance based incentives, or an
investmentprogram rather thanappropriatinggeneral revenueeachyear for thegrant. The
statemaywant tousepublic/privatepartnerships to leverage fundingandengageabroader
stakeholdergrouptoselectawardwinners.
Table6.RenewableEnergyTechnologiesGrantsProgram
FY0607 FY0708 FY0809 FY0910Appropriation $15,000,000.00 $12,500,000.00 $15,000,000.00 $0.00FundsCommitted $15,000,000.00 $12,500,000.00 $15,000,000.00 $0.00FundsExpended $6,880,995.61 $1,458,730.21 $1,048,187.08 $0.00*AsofJan29,2010**$1.676outof$5millionappropriated,hasbeenappliedfor
Since2006,theSolarEnergySystem IncentivesProgram(SolarRebate)hasdistributed
$24.9milliondollars(Table7).Thelegislatureshouldaddresstheeffectivenessandrevisethe
SolarRebateProgram. The SolarRebates$4perwatt subsidyhasnot changed since2006
althoughboth thecostof the technologyandother incentiveshas reduced theneed for the
statesubsidy. Inadditiontothedecliningcostsofsolarhardware,boththe federaltaxcode
and Florida Energy Efficiency and Conservation Act (FEECA) have provided alternative
incentives.TheEnergyImprovementandExtensionActof2008(H.R.1424)includedaneight
yearextensionofthe30%personalincometaxcredittoDecember31,2016,theabilitytotake
thecreditagainstthealternativeminimumtax,andtheremovalofthe$2,000credit limitfor
solarelectricsystemsbeginningin2009.In2009,FEECAutilitieswereauthorizedtoprovideup
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to $24.5 million in total annual incentives for customerowned solar water heaters and
photovoltaic systems. The current rebate appears to be outdated and in light of other
incentives,maynotbeneeded to encourage thedeploymentof residential and commercial
solarsystems.
Table7.SolarEnergySystemIncentivesProgram(SolarRebate) FY0607 FY0708 FY0809 FY0910
Appropriation $2,500,000.00 $3,000,000.00 $5,000,000.00 $14,400,000.00
FundsExpended $0.00 $0.00 $0.00 $14,400,000.00
Balance $2,500,000.00 $3,000,000.00 $5,000,000.00 $0.00
PercentofFundsExpended 100.00% 100.00% 100.00% 100.00%
TheARRA,orFederalStimulusPlan,allocates$40.5million toFloridaunder theState
Energy Program (SEP). An economic impact analysis was performed on the individual state
energyprogramsusingRegionalEconomicModels,Inc.,orREMI.REMI(v9.262007)isawidely
useddynamic(multipletimeperiod,uptoyear2050)integratedinputoutputandeconometric
model.REMIisusedextensivelytomeasureproposedlegislativeandotherprogramandpolicy
economic impacts across the private and public sectors of the state by the Florida Joint
LegislativeManagementCommittee,DivisionofEconomic&DemographicResearch,theFlorida
Departmentof Labor, andother state and local government agencies. In addition, it is the
chosentooltomeasuretheseimpactsbyanumberofuniversitiesandprivateresearchgroups
thatevaluateeconomic impactsacross thestateandnation.FSUCEFAuses theREMImodel
thathasbeendevelopedforthestateofFloridaandincludes169sectors(basedontheNorth
American IndustrialClassificationSystem,orNAICS).Aspresented inTable8, thenumberof
projected jobs associated with each SEP program totaled 494 jobs. The most successful
programunderSEPintermsofjobscreationistheSolarEnergyRebateProgram,whichresulted
in193jobs. Itwas followedby theSolarEnergy (WaterHeating)LoanProgramandSolar for
SchoolsandSheltersProgramwith119and103jobs,respectively.
Table8.EconomicImpactofStateIncentivesinTermsofJobsCreated
StateEnergyPrograms ActualallocationJobsCreatedasperActual
Allocation
SolarEnergy(WaterHeating)loan $10,000,000 103
SolarEnergyRebateProgram $14,408,000 193
SolarforSchools&StormShelters $10,000,000 119
E85Installation/ConversionRevolvingLoans $5,000,000 62
ProgramAdministration,Marketing&Analysis $1,074,300 17
SubtotalRenewableEnergy $40,482,300 494
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RegardingtheincentivesinteractionwithsimilarFederalincentives(i.e.Stateoffersa
solarrebate,Federalgovernmentoffersanincometaxcredit),thisreportfoundnolanguagein
anyincentiveprovisionsindicatingthatacceptinganincentivefromeitherStateorGovernment
wouldprohibitonefromacceptinganincentivefromtheother,grantedthetechnologyapplies
toboth incentives.There is indicationof a doubledippingprovision to reduce the federal
incentive inthePrivateTrustCompanies(PTC)statute.Forwindbasedpowergeneration,the
FederalProductionTaxCredit(PTC)isasignificantincentive.Itprovidesfederaltaxcredittothe
ownersofutilityscalewindprojects.Whilethe federalPTChasbeenamajorstimulustothe
growthofthedomesticwindpowermarket, itssocalleddoubledippingprovisionmayalso
diminishthevalueofcertaintypesofstatewindpowerincentives.Theprovisionrequiresthat
the federal PTC be reduced if a wind project receives certain other kinds of support. To
eliminatedoubledipping, the federalPTC is reduced forany local,state,or federalgrants,
subsidizedenergyfinancing,andanyothercredits.Thepurposeofthisruleisstatedtoprevent
excessiverelianceongovernmentassistance.25
FederalIncentivesforFlorida
Table 29 (in Appendix A) outlines the full slate of incentive offerings by the federal
government.
The specific language in the PTC is as follows: Credit Reduced for Grants, Taxexempt
Bonds,SubsidizedEnergyFinancing,andOtherCredits:Theamountofthecredit...withrespect
toanyprojectforanytaxableyear...shallbereducedbytheamountwhichistheproductofthe
amountsodeterminedforsuchyearandafraction:
(A)Thenumeratorofwhichisthesum,forthetaxableyearandallpriortaxableyears,of
grantsprovidedbytheUnitedStates,aState,orapoliticalsubdivisionofthe
Stateforuseinconnectionwiththeproject,
proceedsofanissueofStateorlocalgovernmentobligationsusedtoprovidefinancing
fortheprojecttheinterestonwhichisexemptfromtaxundersection103,
the aggregate amountof subsidized energy financing provided (directly or indirectly)
25 Ing, E.2002. The EffectofNYSERDAsWindProjectAssistanceon theFederalProductionTaxCredit.Prepared for theNew YorkState
EnergyResearchandDevelopmentAuthority.Rader,N.andR.Wiser.1999.StrategiesforSupportingWindEnergy:AReviewandAnalysisofState Policy Options.Washington,D.C.:NationalWindCoordinatingCommittee.RyanWiser,MarkBolinger and TroyGagliano. Sep2002.Analyzing the InteractionBetweenStateTax Incentivesand theFederalProductionTaxCredit forWindPower.ErnestOrlando LawrenceBerkeleyNationalLaboratory.http://eetd.lbl.gov/EA/EMS/reports/51465.pdf
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underaFederal,State,orlocalprogramprovidedinconnectionwiththeproject,and
theamountofanyothercreditallowablewithrespecttoanypropertywhich ispartof
theproject,and
(B) The denominator of which is the aggregate amount of additions to the capital
accountfortheprojectforthetaxableyearandallpriortaxableyears.
Thestatutorylanguageleavesambiguityastowhichspecifictypeofstateincentivesmay
triggerthedoubledippingprovision.Albeit, itisclearthatanumberofformsofstateaidwill
offsetat leastpartially thebenefitassociatedwith the federalPTC.Nonetheless,despite
legislativehistoryandanumberofprivateletterrulings,thereremainsalackofclarityonthe
kindsofstateincentivesthatwouldtriggertheoffset.Somestudiesprovidetangibleexamples
ofincentivetypesthatareorarenotlikelytooffsetthevalueofthePTC.26
GovernmentincentivesthatarelikelytotriggeraPTCoffsetincludeupfrontgrantsthat
buy down the projects capital costs, and belowmarket interest loans and other forms of
subsidizedfinancing. IncentivesthatarenotlikelytotriggerPTCoffsets includepricesupport
payments,production incentivepayments,grantstomeetoperationalcosts, loanguarantees,
andimplicitsubsidiesprovidedthroughrenewablepurchasemandates.27
Therefore, it is clear that state tax incentives are at risk of reducing the value of the
federalPTC,viathesocalleddoubledippingprovision.ButfederaltaxlawandIRSrulingsare
notclearenoughtospecifywhattypesof incentivestriggerthisoffset.Giventhisprovisionof
federalPTCsandtheiruncertainapplicationtostatetax incentives,nontaxbasedstatewind
power policies (cashbased production incentives, renewable purchase mandates, etc.) that
clearlydonotoffsetthefederalPTCmaybepreferable.
TheNewJerseyexperience isanexampleofthesuccessof incentivescontingentonthe
amountofjobscreated. Inparticular,there isadefiniteneedtocreateamarketbypolicyto
incentivizethemarket.ThekeyistocreatethemarketnotfortheendpurposeofinstallingPV
in the state (an added benefit) but the goal should be to attract the high leveljobs (e.g.
cell/panelmanufacturing,supplychainmanufacturing(e.g.balanceofsystems),systemsdesign
andR&D).
26RyanWiser,MarkBolingerandTroyGagliano2002
27Ing,E.2002
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The Federal government has several existing programs to promote home energy
efficiency.SomeoftheseprogramswereinitiatedundertheEmergencyEconomicStabilization
Actof2008(EESA)andcontinuedundertheAmericanRecoveryandReinvestmentActof2009
(ARRAorStimulusPackage).Otherswere initiatedundertheARRA.Thisgroupofprograms is
implementedintheformofadirecttaxcredittothetaxpayer,orapplicant.Becauseitisatax
credit, the taxpayer will see a dollar for dollar return on the investment, regardless of the
taxpayersincometaxbracket.28
It is critical to understand that not all Energy Star appliances qualify under these
programs,butonly appliances from selected categories. The first groupofprogramsapplies
only to appliances and improvements installed in the applicantsprimary residence andwill
continuethroughDecember31,2010.Theydonotapplytonewconstruction.Someofthese
creditsincludeinstallationcosts,whileothersdonot.Thesecreditsare30%oftheactualcost
of the appliance or improvement,up to $1,500.The typesof appliances and improvements
coveredunderthisprogramarebiomassstoves,highSEERHVACunitsofvarioustechnologies,
insulation, metal and asphalt roofs, high energyfactor water heaters (excluding solar), and
energyefficientdoors,windows,andskylights.Thecreditsforbiomassstoves,HVACunits,and
water heaters include the costs of installation, while the credits for insulation, metal and
asphaltroofs,andenergyefficientdoors,windows,andskylights,donot.
Thesecondandthirdgroupsofprogramsrelatetothehome installationofrenewable
electricgenerationsystems,andwillcontinuethroughDecember31,2016.Thesecondgroup
applies to the applicants primary or secondary residence, but not to rental homes. These
credits canbeapplied tobothnewandexistinghomes. Installationcostsarecoveredunder
theseprograms.Thecredit isfor30%ofthe installedcostofthesystemwithnoupper limit.
The systems covered include geothermalheat pumps, residentialwind turbinesofno more
than100kW,solarwaterheaters(excludingpoolheaters),andsolarphotovoltaicsystems.The
thirdprogramappliesonlytotheapplicantsprimaryresidence,whichcanbeanexistinghome
ornewconstruction.Residentialfuelcellandmicroturbinesystemsofatleast0.5kWapplyto
28TheARRAextendsuntil2014 taxcredits for renewableenergy thathadpreviouslybeen scheduled toexpireandbyproviding$6billionworth of loan guarantees authorized by the Energy Policy Act of 2005 for renewableelectricitydevelopment. These loan guarantees areexpected to stimulate the deployment of conventional renewable and transmission technologies and innovative biofuels technologies. ForrenewableprojectstoqualifytheymustbeunderconstructionbySeptember30,2011.SeeAppendixGfordetailsonFederalLoanGuarantee
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thisprogram.Thecreditcovers30%ofthe installedcostofthesystem,up toamaximumof
$500per0.5kW.
FloridaEnergyEfficiencyandConservationAct(Section366.82)
Florida
utilities
with
sales
of
2,000
GWh
or
more
are
subject
to
the
Florida
Energy
Efficiency and Conservation Act (FEECA). This act requires each utility to implement cost
effectiveenergyefficiencyprogramsandtoconductenergyaudits.TheLegislaturedirectsthe
FloridaPublicCommissiontodevelopandadoptoverallgoalsandauthorizesthecommissionto
requireeachutilitytodevelopplansand implementprogramsfor increasingenergyefficiency
and conservation and demandside renewable energy systems within its service area. The
majorobjectivesoftheFEECAareto:
Reduceandcontrolthegrowthratesofelectricconsumption;
Reducethegrowthratesofweathersensitivepeakdemand;
Increase the overall efficiency and costeffectiveness of electricity and natural gas
productionanduse;
Encourage further development of demandside renewable energy systems; and
conserveexpensiveresources,particularlypetroleumfuels.
TheCommissionisauthorizedtofinanciallyrewardthoseutilitiesthatexceedtheirgoals
andmay imposepenalties for thoseutilities that fail tomeet theirgoals.TheCommission is
authorized toallowan investorownedelectricutilityanadditional returnonequityofup to
0.5% for exceeding 20 percent of their annual load growth through energy efficiency and
conservationmeasures.
EnergyEfficiencyandRenewableEnergyIncentivesinCleanEnergyJobsandAmericanPower
Act2009
Table
29
(in
Appendix
A)
consists
of
federal
programs
available
through
the
Department
of the Treasury, Department of Energy, and Department of Agriculture. Some of these
programsareenabledthroughtheAmericanRecoveryandReinvestmentActof2009.Thislistis
thoughttobecomplete,butmaynotbeexhaustive.
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Section161:RenewableEnergy
Under this section, theAdministrator, in consultationwith the SecretariesofEnergy,
Interior,andAgriculture, isauthorized toestablishaprogram toprovidegrants to states for
renewableenergyprojectsthatfacilitatecompliancewithastateRenewablePortfolioStandard
(RPS). Qualifyingsourcesofenergy includesolar,wind,biomass, landfillgas,ocean(including
tidal, wave, current, and thermal), geothermal, municipal solid waste, or new hydroelectric
generation capacity achieved from increased efficiency or additions of new capacity at an
existinghydroelectricproject.Theamountofthegrantmaynotexceed50percentofthetotal
costoftherenewableenergyprojectthatistobefundedbythegrant.Applicationsthatcome
from a state thathave abinding renewableenergyportfolio standard andprojects that are
costeffectivearetobegivenprioritywhenawardingthegrant.Tomonitorthegrantprogram,
theAdministratorisrequiredtosubmitareporttotheCommitteesonEnergyandCommerce
oftheHouseofRepresentativesandtheSenate.Thereportmustincludeinformationaboutthe
projectapplicationsreceived,projectapplicationsapproved,amountallocatedtoeachproject
andthecumulativebenefitsofthegrantprogram.
Section162:AdvancedBiofuels
AccordingtoSection162oftheBill,anindividual,corporateentity,unitofStateorlocal
government, Indian tribe, farm cooperative, institution of higher learning, rural electric
cooperative,orpublicutilitywillbeentitledtoagranttosupport;
researchregardingtheproductionofadvancedfuels
the development of new advanced biofuel production and capacitybuilding
technologies
the development and construction commercialscale advanced biofuel production
facilities
theexpandedproductionofadvancedbiofuels
The grants will be awarded based on costeffectiveness, technical and economic
feasibility and innovation. Furthermore, priority will be given to programs that can be
replicatedandthatarebeingfinancedbyprivateresources.
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Section163EnergyEfficiencyinBuildingCodes
EnergyEfficiencyTargets
Thissection requires theAdministrator (oranotheragencyheadasdesignatedby the
President)tosetnationaltargetsforimprovingenergyefficiencyinresidentialandcommercial
buildings, and write regulations establishing building codes to meet those targets. Buildingswould have to meet the energy efficiency targets beginning Jan. 1, 2014 and every year
thereafterthroughDec.31,2030.TheAdministratororotheragencyheadisrequiredtoreport
toCongressannuallyonthestatusandimplementationofthecodesandregulations.
Section164:RetrofitforEnergyandEnvironmentalPerformance
This section of the bill establishes the Retrofit for Energy and Environmental
Performance(REEP)program.Thepurposeoftheprogramistoretrofitexistingbuildingsacross
the United States to achieve maximum costeffective energy efficiency improvements and
significantimprovementinwateruse.
FinancialIncentivesforResidentialandNonResidentialBuildingsareasfollows:
ForResidentialBuildings:
$1,000 for a combination of prescriptive measures designed to reduce energy
consumption by more than 10% (but not less than 10%), and $2000 for prescriptive
measuresdesignedtoreduceenergyconsumptionby20%;
$3,000 for actual demonstrated savings of 20% utilizing the performance based
structure,and$150peradditionalpercentagepointofenergysavingsachieved;
Incentivesmayaccumulatetoamaximumincentivenottoexceed50%ofretrofitcosts.
ForNonResidentialBuildings:
Amaximumof$0.15persquarefootofretrofitareaforenergyusereductionsfrom20%
to30%;
$0.75persquarefootforenergyusereductionsfrom30%to40%;
$1.60persquarefootforenergyusereductionsfrom40%to50%;and
$2.50persquarefootforenergyusereductionsexceeding50%.
Incentivesmayaccumulatetoamaximumincentivenottoexceed50%ofretrofitcosts.
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ProgramsOfferedbyLocalUtilities,Cities,andCounties
In Florida, some counties and municipal governments, and utilities offer inhouse
programs.Table30 inAppendixAprovidesa listingofthoseprograms.Someprogramshave
proven more successful than others. Among counties, MiamiDade, and Orange counties
offered programs ranging from green building to solar/thermal installers. Among citybased
utilities,theCityofTallahasseeoffersprograms likesolarefficiency loans,pool/waterheating
programs, residential energy efficiency rebate programs, energy star new homes rebate
program,solar loanprogram,utility rebateprogramandvariousothers.Programs likeonbill
financing were successful whereas the solar loan program has proven to not be successful.
Prominentamong theprogramsofferedbyOrlandoUtilityCommissionare thehomeenergy
efficiencyfixupprogram,utilitygrantprogram,residentialinsulationloanprogram,residential
solar loan program and the residential energy efficiency rebate program. The Gainesville
RegionalUtilitieshas itsown solar feedintariff andenergyefficiency rebateprograms.The
FortPierceUtilityAuthoritysprominentprogramsaretheresidentialenergyefficiencyrebate
program, utility rebate program and building insulation program. The Kissimmee Utility
Authorityoffers the residentialenergyefficiency rebateprogram,utility rebateprogramand
various building insulation improvement plans. Various private power companies also offer
different energy efficiency programs. Gulf Power offers the geothermal installation rebate
program,utilityrebateprogram,solarwaterheaterprogramandsolarthermalwaterheating
pilotprogramsamongothers.Ahomeenergycheckauditandrebateprogramisofferedbythe
ProgressEnergyFlorida.Itsotherprogramsareutilityrebateprogramsandsolarwaterheating
with EnergyWise program. Florida Power and Lights prominent programs include the
residential energy efficiency program, utility rebate program, building insulation program.
Generally speaking, utility rebate programs are mostly successful in county and citybased
utilities,inadditiontotheprivatepowercompanies.
CommercialIncentives
There are several federal incentives available to manufacturers of certain appliances
thatuseenergyorwatermoreefficiently.Thetaxcreditsassociatedwiththeseappliancesgo
directlytothemanufacturer,andnotto theconsumer,butthegovernmentexpectsthatthe
creditwillbereflectedinthepriceoftheappliance.Through2010,themanufacturersofhigh
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