Florida’s Renewable Portfolio Standard Workshop July 26, 2007 Tallahassee, Florida

1. Florida’s Renewable Portfolio Standard WorkshopJuly 26, 2007Tallahassee, Florida

2. Almost Half of the States Have Adopted Renewable Portfolio Standards • Four areas of the country have been active in adopting standards • Soon a fifth area will develop around Florida

3. Without National Leadership, States Have Developed Many Approaches to Renewable Portfolio Standards • There are almost as many approaches to renewable portfolio • standards as there are states • Each state has different challenges and opportunities • it is trying to balance

4. Almost all states face the question of whether or not there will be enough renewable energy within its boundaries to meet its goals • This is driven by the renewable resources • that may or may not be present • The lack of proven, cost-effective technologies for many key renewable energy sources, e.g. • Cellulosic ethanol • Solar • Hydrogen • Ocean energy • Fuel cells

5. States have chosen similar methods of meeting this challenge, adapting their goals to meet specific state needs • Some states have used Renewable Energy Credits (RECs) • as a means of meeting renewable energy goals • Some states have limited approval of renewable technologies to those that match the state’s renewable energy resources • Some states have chosen to encourage the development of state renewable energy resources by the way they set renewable energy standards, or the valuation of RECs used to meet utility renewable energy goals

6. A Megawatt Goal versus Peak Generation Goal is an Interesting Way of Framing the Issue Nationally the debate has been capacity versus energy • Energy goals favor renewable technologies that produce power intermittently • Wind • Solar • Capacity goals favor technologies that are dispatchable, and act more like base-load energy units • Biomass as a fuel to co-fire, or direct fire boilers or turbines • Geothermal • Waste to Energy Technologies • Land-fill Gas • Anaerobic Digestion

7. Megawatt Goal versus Peak Generation Only two states have approached RPS with a megawatt goal – • Iowa • 105 Megawatts • Texas • 2,280 MWs by 1/1/2007 • 5,880 Mws by 1/1/2015 • At least 500 MWs from renewables other than wind

8. Florida Should Consider • Using renewable energy as one means of meeting the need for additional fuel diversity • Creating a preference for the creation of renewable energy in Florida over RECs purchased in other states • Developing the renewable energy resources Florida has been given • Strong bio-energy potential due to the best growing climate in the United States and a strong agricultural base • Abundant sunshine • Potential for ocean energy • In the debate over capacity versus energy, giving more economic value to technologies that act more like a traditional utility generation plants – high capacity factor renewable resources

9. Biomass Could Be A Major New Energy Resource for Florida • Biomass is almost exclusively recognized for its potential with cellulosic ethanol • The potential for biomass as a fuel to co-fire or direct fire boilers to generate electricity is gaining more national attention • National studies indicate that the development of biomass could meet or exceed the current energy potential of wind energy and hydro-electricity • Florida already has the Okeelanta Power Plant, one of the largest and best operated biomass plants in the United States. • These type of resources should be expanded, if possible

10. The challenge of Meeting Renewable Energy Goals Seems too Great to Many People Some are talking about calling nuclear energy renewable • Nuclear energy is clean energy, from the standpoint of emissions • It is not renewable • It will be developed to meet Florida’s growing energy needs • Giving it an additional incentive by placing it in a renewable portfolio standard could slow or stop the development of renewable energy resources which are unique to Florida