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RPS: WHERE DO WE GO FROM HERE IN FLORIDA Florida Renewable Energy Producers Association

RPS: WHERE DO WE GO FROM HERE IN FLORIDA Florida Renewable Energy Producers Association Presented by Michael Dobson. ABOUT FREPA.

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RPS: WHERE DO WE GO FROM HERE IN FLORIDA Florida Renewable Energy Producers Association

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  1. RPS: WHERE DO WE GO FROM HERE IN FLORIDA Florida Renewable Energy Producers Association Presented by Michael Dobson

  2. ABOUT FREPA The Florida Renewable Energy Producers Associationrepresentsrenewable energy producers interested in project development in Florida. FREPA’s main goal is to advocate for policy and fiscal incentives, a favorable regulatory environment, and programs that promote research and spur growth in the use of renewable energy sources in the Sunshine State.

  3. RPS A renewable electricity standard—also known as a renewable portfolio standard or RPS—is a cost-effective, market-based policy that requires electric utilities to gradually increase their use of renewable energy resources such as wind, solar, and bioenergy. Currently, 29 states and the District of Columbia have enacted renewable energy standards - and evidence shows those states are meeting the standards, realizing positive environmental impacts and generating economic growth. Florida is positioned to be THE leader in the Southeast.

  4. RPS EXPECTATIONS-SAME AS THEY WERE Legislative Goals of RPS Statute: • Increase the amount of renewable energy generation in Florida • Promote stable electricity prices through a mix of energy resources • Protect the publics health by promoting the use of cleaner energy resources • Improve the quality of Florida’s environmental • Stimulate economic development by building a vibrant renewable energy market in Florida • Reduce dependence on foreign fuels • Make us as a country more secure by accomplishing the previous goal

  5. A QUESTION OF RESOURCES AND DEVELOPMENT The Governor’s executive order OF 2007 proposeD a RPS standard of 20% by 2020---- can Florida meet such a goal? Do we need nuclear tro achieve goal? Does Florida have available homegrown resources that are plentiful enough to reach the Governor’s goal? What are Florida’s renewable resources? Where does off shore oil drilling fit in? What is Florida’s track record in renewable energy projects? What has contributed to Florida’s track record with regard to renewable energy projects being realized? What will need to change in the regulatory environment and business attitudes that will make Florida an attractive place for renewable energy development?

  6. BEST KEPT SECRET RENEWABLE SOURCE “THE SUN”

  7. FLORIDA’S WIND QUESTION Map of Projected Wind Power Capacity by State in 2030 The WinDS model can examine where wind power will be developed under various scenarios. In this example, which shows one scenario for achieving 20% wind power by 2030, much of the wind power capacity is concentrated in the U.S. heartland. Source: NREL

  8. Renewable PortfolioStandards 2007

  9. Renewable Portfolio Standards (RPS) 2008 Source: Pew Center on Global and Climate Change

  10. Renewable Portfolio Standards 2009 States 27 –RPS 5-AEPS 5-Goals Courtesy of Pew Center on Global Climate Change

  11. Florida RPS- The Bright Idea • Our leaders and their roles, who they are and lots of thanks • The hardening of political sides • Learning the facts about or renewable energy resources • Coming to grips with political dogma and hardened ideology • Learning to give and take • Finding the “third way” to reaching an RPS everyone can live with • How do we get it done…. for discussion

  12. RPS FIRST STEPS Defining "renewables." The definition must be limited to those resources and technologies that are environmentally sound, that represent a small fraction of the current resource base, and that need market support. Such a definition would include wind, solar, biomass and geothermal resources. 2. Setting the level of the standard and its rate of increase over time. The level of the standard must begin at, or very near, current levels of renewables (as defined) and rise from that point. We suggest 20% by 2020. 3. Sunset date. However, as an option, the RPS could be "self-sunsetting" -- meaning that the RPS policy sunsets when the price of Credits falls to zero, signifying that renewables are fully competitive and integrated into the market. A self-sunset date indicates that the RPS is intended to be a long-term policy.

  13. Florida Energy Opportunities in Nuclear • Nuclear (process is clean, technology is proven, takes a long time to site and build… has problem with discarding waste and is a regulatory boondoggle) • Very important part of our energy future • Need to find ways to get them online quicker and site them • Not a renewable.. Why not a stand alone bill not included in RPS? • Would not be consistent for RPS consideration

  14. BACK TO THE FUTURE:Sun, Biomass, Wind and more • Nature offers a variety of freely available options for producing energy. It is mainly a question of how to convert sunlight, wind, biomass or water into electricity, heat or power as efficiently, sustainably and cost-effectively as possible. • Decades of technological progress have seen renewable energy technologies such as wind turbines, solar photovoltaic panels, biomass power plants and solar thermal collections move steadily into the mainstream. • The global market for renewable energy is growing dramatically

  15. Florida Renewable Energy Generation Today“These should be the focus of an RPS” • Solar PV • Solar thermal • Wind… yes wind • Biomass .. more support for biomass is needed. (being misrepresented by environmental groups… a god jobs creator) • Landfill gas • Digester gas

  16. KEY ELEMENTS OF A SUCCESSFUL RPS PROGRAM IN FLORIDA • Identify feedstocks and resources that can generate power today. • Obtain an up- to- date and usable catalog of available feedstock and resources • Develop incentives geared toward helping developers with the economics of a renewable energy project. • Make sure that incentives are long-term and consistent from year to year to secure investor interest into the state. • Put more focus and investment into proven technologies. • Promote flexibility from utilities on price (i.e., utilities must work with renewable producers to make projects work), • Encourage utilities to factor in the lifespan of a project in cost considerations.

  17. RPS DESIGN REQUIREMENTS • Strong political support and regulatory commitment that is expected to continue into the future • Clear and well-thought-out RE eligibility rules • Predictable long-term targets that ensure new RE supply • Standards that are achievable given siting challenges and other practical constraints • Credible and automatic enforcement – penalties must exceed cost of compliance • Applied to electricity suppliers that are credit-worthy and are in a position to enter into long-term contracts

  18. RPS DESIGN REQUIREMENTS Some key procurement methods within an RPS (for obligated retail providers to satisfy RPS targets): • Long-term contracts • Short-term contracts • Should have contracts having curtailability as an attribute • Contracts could allow for energy delivery at any point in Florida • The PSC could approve contracts that may be “repackaged” from larger contracts • Contracts entered into by a procurement entity

  19. MARKET DRIVERS Longterm renewable energy procurement contracts Well documented resource supply that would past muster of third party financers Tax incentives that support large scale renewable energy production Ability to site projects Predictable permitting and perhaps streamlining of permitting process

  20. HOW DO WE DO IT LEGISLATIVELY ? • History:2007-2009 • Where we were • Executive Order • HB 7135 • PSC vs Legislative will • 2009 legislative session and big oil • Today’s opportunity

  21. HOW DO WE DO IT LEGISLATIVELY ? • Brief summary of bills currently filed for 2010 session • Range: • Senator Kings bill from 2009 which passed the senate but was not taken up in house, now sponsored by Sen. Detert • Bill filed to eliminate the need of PSC to get legislator blessing to implement RPS • Sen. Constantine filed bill to create RPS without nuclear unlike Sen. Kings bill • Bill to address cons of avoided cost model policy which make it difficult for renewables to come on line via purchase Power agreement negotiations • **All are Senate bills and there are others • Feed-In Tariffs does not have interest of leaders… RPS is the only game in town • **Key: No activity in the Florida House of Representatives in the form of a bill from its leaders (as of this date 2/18/10)

  22. HOW DO WE DO IT LEGISLATIVELY? • One Important element and message from legislative supporters • Renewable energy advocates must agree on a set of core principles so that legislators do not get mixed messages. They see us as the experts and are looking for guidance. • Must identify what we can fight another day • Work to get the framework in place that will allow flexibility and change as we know more • Must be more succinct in identifying what we want • Advocacy groups and legislative champions must be on same page

  23. THIS IS OUR TIME TO LEAD!!!! • Environmental advantages • Job creation is critical to all and is not lost on political leaders…. they know that renewables provide jobs • Florida has changed and must change its business model • Favorable Renewable policies attract the best and brightest and could be a catalyst to let outsiders know that Florida has embraced technology…attract more Venture Capital interest • Legislature IS ready … it knows we are at a crossroads • Its all up to us!!!!

  24. COST OF DOING BUSINESS AS USUAL “Our energy problems are not going away” • Cost and accessibility of renewable energy must be tempered by the fact that: • Costs for providing electricity in Florida based on natural gas, coal or fossil fuels will continue to increase due to our growing economy and population. • The increased demand for power, fossil fuel prices and the abundance of our natural resources requires us to diversify Florida’s energy portfolio.

  25. RPS-WHAT’S IN IT FOR FLORIDA? • We become good stewards of our planet by reducing emissions. • We create a new industry in Florida. • We generate an alternative to conventional energy sources. • We contribute to national and economic security.

  26. RPS ECONOMIC IMPACT IN THE STATE FLORIDA Job Creation 3,500 new jobs in Florida. Economic Development $ 1.2 billion in new capital investment $ 1.4 billion in income to farmers and rural landowners, $ 10 million in new local tax revenue Consumer Savings $ 110 million in lower electricity and natural gas bills by 2020 $ 820 million by 2030 SOURCE: Union of Concerned Scientists

  27. WHO IS KEY TO MAKING RPS WORK IN FLORIDA? • PUBLIC SECTOR • Governor • Florida Legislature • Florida Public Service Commission • Florida Energy Commission • PRIVATE SECTOR • Investment community • Renewable energy developers • Utilities • Florida businesses • CONSUMERS • You and me

  28. MORE RENEWABLE ENERGY=RPS More renewable energy will become a reality in our state when we create the right business and political climate to make renewable energy development a part of the Florida economy. Renewable energy investors and developers need to know that we are a friendly state to do business in. An RPS will change our image, regardless of the percentage. LET’S MAKE IT WORK!

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