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Energy bill deal offers efficiency tax breaks

Consumers and companies get help in the compromise, which passes the House.

By JENNIFER LIBERTO
Published May 4, 2006

By 119-1, the House passed the energy compromise bill, which gives consumers tax breaks for buying energy-efficient products and gives companies tax breaks for producing biodiesel and ethanol fuel using Florida crops, including sugar cane.

It cuts competitive bidding for nuclear power plants and allows power companies to pass on to their customers the preconstruction costs of building a nuclear plant many years before the plant is up and running.

The bill creates a legislative-appointed energy commission under the purview of the Legislature that would research and recommend energy policy, such as ways to cut greenhouse emissions, which contribute to global warming.

One controversial measure gives $5-million in annual tax credits from 2007 through 2011 to companies that create "renewable energy," for which a few companies would qualify. Two that would are Covanta Energy Corp., a company that owns solid waste facilities, and Florida Crystals, a sugar grower.

The credits are intended to encourage companies to produce electrical, mechanical or thermal energy by using hydrogen, biomass and waste heat.

"I, too, think that there are some things in this bill that probably should not be here," said Rep. Ken Littlefield, R-Wesley Chapel. "But I can tell you I'm voting for this, because there is enough good here."

Florida ranks fifth nationally in energy consumed per capita and third in energy consumption, according to a 2001 study by the United States Energy Information Administration. After the 2004 and 2005 hurricanes revealed the state's dependence on oil and natural gas, Gov. Jeb Bush asked DEP and the Legislature to start thinking about crafting new energy policy to move the state toward alternative fuels.

The bill includes:

n A sales tax holiday on energy-efficient appliance purchases made from Oct. 5 through Oct. 11.

n A study of the state power transmission grid to be conducted by the Public Service Commission.

n Rebates on power bills for homeowners and businesses who buy and install systems that capture and use solar power.

n A sales tax exemption on hydrogen-powered cars and fuel cells and on the cost of materials to retrofit gas stations to pump ethanol and biodiesel.

Some of the more controversial parts of the bill involve changes to the state's nuclear power plant siting rules. By cutting competitive bidding for nuclear power plants, plants don't have to compete against cheaper-to-build natural gas or coal plants. They just have to compete among themselves.

Environmentalists and consumer groups were reserved in their reaction to the final energy product, which has been in the works for months.

"We're pleased to see that the energy commission is going to look at greenhouse gas emissions, which is a step in leaning toward a cleaner future.

However, we maintain concerns about making it easier to site coal and nuclear plants," said Susan Glickman of the Natural Resources Defense Council.

Jennifer Liberto can be reached at liberto@sptimes.com.

[Last modified May 4, 2006, 07:11:50]