Florida s Energy & Climate Change Action Plan

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Clare Terry
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1 Florida s Energy & Climate Change Action Plan As developed by the Governor s Action Team Secretary Michael W. Sole Florida Department of Environmental Protection Presentation to the Florida Energy & Climate Commission January 26, 2009

2 Serve to Preserve Summit on Global Climate Change On July 13, 2007, Governor Charlie Crist signed three executive orders declaring the state s commitment to lessen dependence on foreign oil and reduce greenhouse gas emissions. EO Leadership by Example EO Immediate Actions to Reduce Greenhouse Gases EO The Governor s Action Team on Energy and Climate Change 2

3 Governor s Action Team on Energy & Climate Change Established by Executive Order The Phase 1 Report, released November 1 contains: 35 findings and 30 recommendations under each of the 11 charges Divided into three distinct sectors - power generation, transportation and local/state government activities 21 members representing the environmental community, utility providers, government and businesses. Met four times for a total of 36 hours 3

4 Phase 2: Process Began Phase 2 with an expanded membership from 21 to 28 Designated 6 Technical Work Groups (TWGs) Focus on specific sectors of the economy and provide technical analysis and policy options Comprised of more than 120 members Adaptation; Agriculture, Forestry, and Waste Management; Cap-and-Trade; Energy Supply and Demand; Governmental Policy and Coordination; and Transportation and Land Use. 4

5 Phase 2: Action Plan Action Team met for more than 60 hours of deliberation Builds on the recommendations from the Phase 1 Report Vetted more than 300 actions Developed 50 policy recommendations Developed a suite of recommendations as guidance to DEP to develop regulatory, marketbased cap-and-trade emissions limiting program 5

6 Principal Conclusions Florida expected to experience significant impacts if GHG emission levels are not reversed; Early action can result in energy security benefits and position the state to become a hub of green technology innovation and investment; Energy efficiency, demand-side management, and energy conservation present opportunities to reduce energy costs and make the state s business sector more cost-competitive; Investments today in low-carbon energy sources will stimulate the economy; Market-oriented regulations will efficiently guide a lowcarbon economy while protecting energy consumers, maintaining agriculture and building sustainable communities. 6

7 Greenhouse Gas Emissions by Sector, Forest Fires Waste Management Other Ind. Process ODS Substitutes Agriculture Jet Fuel/Other Transportation Onroad Diesel Use Onroad Gasoline Use RCI Fuel Use Fossil Fuel Industry Electricity (Consumption Based) Forest Fires MMtCO 2 e Onroad Gasoline Use Onroad Diesel Use 150 RCI Fuel Use Electricity (Consumption Based) Year

8 Annual greenhouse gas emissions: reference case projections and Action Team recommendations (consumption-basis, gross emissions) MMtCO 2 e Year Business as Usual Emissions Utility Cap California Clean Car Stds Statewide Diesel Idling Std Building Efficiency Improvements Appliance Efficiency Improvements Building Codes for Energy Efficiency 8 Action Team Recommendations Target Emission Levels

9 Impact of the Recommendations: GHG emission reductions would surpass the EO targets for 2017 and 2025 by 115 and 34%, respectively; Energy security would increase by reducing dependence on fossil fuels resulting in a total fuel savings of: 53.5 billion gallons of petroleum, million short tons of coal, and billion cubic feet of natural gas during the period of 2009 through 2025 Economy would see a net benefit through investments in energy efficiency, low-carbon energy sources, and other GHG reduction strategies resulting in an estimated savings of more than $28 billion from 2009 to

10 Phase 2 Key Recommendations: Energy Supply & Demand #12 Demand-Side Management/Energy Efficiency Programs, Funds, or Goals for Electricity Focuses on increasing investment in electricity efficiency through programs run by utilities or others, energy efficiency funds, and energy efficiency goals. Includes two key and linked dimensions: achievable/desirable energy savings and policy/administrative mechanisms to achieve these savings. Revise existing statutes to enable utility investments in energy efficiency and consideration of eligible programs that are cost-effective 10

11 Phase 2 Key Recommendations: Transportation & Land Use - #1 Develop and Expand Low-GHG Fuels Seeks to reduce GHG emissions by decreasing the carbon intensity of vehicle fuels sold The state would develop a set of standards for lowcarbon fuels, which include biodiesel, cellulosic ethanol, hydrogen, compressed natural gas, liquefied petroleum gas, electricity, and low-carbon ethanol blends such as E10 or E85 Fuel providers annually report that the fuel mixtures meet the low-carbon fuel standard 11

12 Phase 2 Key Recommendations: Transportation & Land Use - #2 Low Rolling Resistance Tires and Other Technologies Improve the fuel economy of the light-duty vehicle fleet by reducing the rolling resistance of replacement tires without reducing tire lifetime Consumers could purchase more tires currently available that have lower rolling resistance State could set minimum energy efficiency standards for replacement tires and require that greater information about Low Rolling Resistance replacement tires be made available to consumers at the point of sale 12

13 Phase 2 Key Recommendations: Agriculture, Forestry & Waste Management - #4 Expanded Use of Biomass Feedstocks for Electricity, Heat, and Steam Production Dedicates biomass from agriculture, wood industry, unused forestry residues and municipal solid waste biomass resources for conversion to energy Create reduction of CO 2 due to displacement of fossil fuels considering life-cycle GHG emissions associated with viable collection, hauling, and energy conversion and distribution systems Goal is to increase the use of biomass feedstocks for energy purposes by a factor of five by

14 Governor s Action Team / Archive 14

15 DEP Rule-making Update Florida Clean Car Emissions Standard 2009 Session Cap-and-Trade Program 2010 Session 15

16 Adoption of Florida Clean Car Emissions Standard Greenhouse gas (GHG) from vehicles is primarily carbon dioxide (CO 2 ) Florida s Clean Car Emissions Standard is Florida s only option under federal law to regulate GHG emissions from new passenger cars & light-duty trucks No federal GHG standards exist 16

17 CO2 Emissions from Florida Vehicles Figure 5. CO 2 Emissions by Energy Sub-sector in Florida % 2% 5% Transportation accounts for over 40 percent of the CO 2 emissions in Florida. 48% 44% Figure 8. CO 2 Emissions from Transportation Sub-sector in Florida % 0% 1% 1% 9% 9% Residential Commercial Industrial Transportation Electric Utilities 10% 0% 0% 1% 1% 35% Passenger cars and lightduty trucks account for nearly 2/3 of the transportation CO 2 emissions % 29% Automobiles Light-Duty Trucks Heavy-Duty Trucks Buses Motorcycles Aircraft Ships and Boats Locomotive Pipelines

18 Benefits of Florida Clean Car Emissions Standard Saves consumers money Improves national energy security Protects the environment 18

19 House Bill 7135: Cap-and-Trade Energy, Climate Change, and Economic Security Act of 2008 Included new section , F.S., Florida Climate Protection Act: DEP may adopt rules for a cap-and-trade program to reduce emissions of greenhouse gases from major emitters (defined as electric utilities) 19

20 Florida s Cap-and-Trade Program Objectives: Development of the most protective rule for Florida environment Balance environment and economics Influence national cap-and-trade program 20

21 Cap-and-Trade Rule: Overall Process 2008: Initial logistics and planning January to June 2009: Public participation July to December 2009: Briefings, hearings 2010 Session: Final rule for ratification by Legislature 21

22 Secretary Michael W. Sole Florida Department of Environmental Protection

STATE OF FLORIDA OFFICE OF THE GOVERNOR EXECUTIVE ORDER NUMBER 07-126

STATE OF FLORIDA OFFICE OF THE GOVERNOR EXECUTIVE ORDER NUMBER 07-126 Establishing Climate Change Leadership by Example: Immediate Actions to Reduce Greenhouse Gas Emissions from Florida State Government