Florida Governor set to sign energy bill; biofuels tax credits; cap and trade emissions system are among highlights

May 8, 2008

In Florida, the state energy bill will be signed this week by Governor Charlie Crist, and contains a statewide carbon cap-and-trade system, an E10 mandate by 2010, and a $6.5-million in annual investment tax breaks for biofuels. The biofuels tax incentives are being carried forward from legislation first passed in 2006.

The 10×10 legislation may be unnecessary, according to local reports that pure gasoline will becoming difficult to find after ExxonMobil and BP commence selling E10 at their Florida stations next week. Shell commenced selling E10 in March, and Chevron will follow in July. Hess was the first major retailer to convert, making the switch late last year.

The Florida state legislation would create a seven-member Florida Energy and Climate Commission. The bill would also create a cap-and-trade system for reduction of greenhouse gas emissions by utilities, a renewable portfolio standard requiring 2.25 percent use of renewables by utilities commencing in 2009, and green-friendly construction standards and procurement policies.
In related infrastructure news, Kinder Morgan’s Central Florida Pipeline will commence delivering ethanol by pipeline between the Port of Tampa and Orlando Airport. The first test batch will be delivered in the third quarter after replacement of pumps, seals, and gaskets, to a 23 million gallon storage facility established in Orlando.