HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1645 Energy Resources
SPONSOR(S): Commerce Committee, Energy, Communications & Cybersecurity Subcommittee, Payne
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1624
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy, Communications & Cybersecurity 16 Y, 0 N, As CS Bauldree Keating
Subcommittee
2) Appropriations Committee 20 Y, 6 N Pigott Pridgeon
3) Commerce Committee 11 Y, 4 N, As CS Bauldree Hamon
SUMMARY ANALYSIS
The bill updates Florida’s energy policies and amends specific energy -related laws. Specifically, the bill:
 Provides an updated statement of legislative intent concerning the state’s energy policy and establishes a list of
specific, fundamental policy goals to guide the state’s energy policy.
 Updates energy policy statements in current law and the duties of the Department of Agriculture and Consumer
Services (DACS) to be consistent with the energy policy goals established in the bill.
 Requires the Public Service Commission (PSC) to determine, upon notice by a public utility, whether an off-
schedule power plant retirement is prudent and consistent with the energy policy goals established in the bill.
 Requires electric cooperatives and municipal electric utilities to have at least one mutual aid agreement with
another electric utility for purposes of restoring power after a natural disaster.
 Increases the minimum length of an intrastate natural gas pipeline that requires certification under the Natural
Gas Transmission Pipeline Siting Act from 15 miles to 100 miles.
 Provides that certain “resiliency facilities” owned and operated by a public utility that deploy natural gas reserves
for temporary use during a system outage or natural disaster are a permitted use in all commercial, industrial, and
manufacturing land use categories and districts, subject to setback and landscape criteria for other sim ilar uses.
 Provides for the recovery of certain facility relocation costs incurred by a natural gas utility through a charge
separate from the utility’s base rates.
 Prohibits the construction, operation, or expansion of offshore wind energy facilities and wind turbines located on
real property within one mile of the state’s coastline or on waters of the state.
 Requires the PSC to conduct an assessment of the security and resiliency of the state's electric grid and natural
gas facilities against both physical threats and cyber threats and to submit a report.
 Authorizes the PSC to approve utility programs for electric vehicle (EV) charging if certain conditions are met.
 Requires the Department of Management Services (DMS) to develop the Florida Humane Preferred Energy
Products List to identify certain products that appear to be largely made free from forced labor.
 Repeals the Renewable Energy and Energy-Efficient Technologies Grant Program, Florida Green Government
Grants, the Energy Economic Zone Pilot Program, and Qualified Energy Conservation Bonds provisions.
 Prohibits community development districts and homeowners’ associations from prohibiting certain types or fuel
sources of energy production and appliances that use such fuels.
 Requires the PSC to study and evaluate the technical and economic feasibility of using advanced nuclear power
technologies and to submit a report of its findings and recommendations.
 Requires DOT to study and evaluate the potential development of hydrogen fueling infrastructure, inc luding
fueling stations, to support hydrogen-powered vehicles that use the state highway system.
The bill does not appear to have a fiscal impact on state or local government revenues but may have an indeterminate
negative fiscal impact on expenditures. See fiscal comments.
The bill provides an effective date of July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h1645e.COM
DATE: 2/17/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Florida Energy Profile
Florida is the third most populous state and the fourth largest energy-consuming state in the nation.
However, Florida uses less energy per capita than all but six other states, in part because of its large
population, moderate winter weather, and relatively low industrial sector energy use. 1 Florida’s energy
consumption can be broken down by end-use sector as follows:2
 Transportation – 39%
 Residential – 28%
 Commercial – 22%
 Industrial – 11%
In the electric power industry, natural gas is the dominant fuel in Florida and since 2011 has generated
more electric power than all other fuels combined. Natural gas fueled approximately 70 percent of
electric energy consumed in Florida in 2022. This number is anticipated to decline over the next ten
years, reaching 56 percent by 2032.3 Florida has very little natural gas production and limited gas
storage capacity, thus the state is reliant upon out-of-state production and storage to satisfy its
demand.4 Supply from out-of-state is provided by five interstate natural gas pipelines, with the majority
of peninsular Florida’s supply provided by three interstate pipelines: Florida Gas Transmission Pipeline,
Gulf Stream Natural Gas System, and Sabal Trail Transmission. 5
In 2021, renewable energy resources were used to generate approximately 6 percent of the electric
energy consumed in Florida. This number is anticipated to increase over the next ten years, reaching
28 percent by 2032, primarily from the addition of new solar generation. Solar generation in Florida is
expected to exceed all non-natural gas energy sources combined (primarily nuclear and coal) by 2029.6
Of the current renewable generation capacity in Florida, approximately 37 percent is considered a “firm”
resource that can be relied upon to serve customers and defer the need for traditional power plants.
Because of the coincidence of solar generation and the peak demand for electrical energy, about 40
percent of installed solar generation is considered a firm resource. For utility-scale solar projects, that
number increases to 52 percent. As the amount of solar increases in the state, the difference in how it
operates compared to traditional generation will have an increasing importance to the grid. Solar
generation cannot be dispatched as needed, but is produced based upon the conditions at the plant
site, influenced by variations in daylight hours, cloud cover, and other environmental factors. Generally,
the peak hours for production of a solar facility are closer to noon, whereas the peak in system demand
tends to be in the early evening in summer and early morning in winter. Still, Florida is projected to
meet its electricity demand and carry a reserve margin of between 16.4 and 30.1 percent on a
statewide basis over the next 10 years.7
1 U.S. Energy Information Administration (EIA), Florida, State Profile and Energy Estimates, Analysis,
https://www.eia.gov/state/analysis.php?sid=FL#:~:text=Renewable%20resources%20fueled%20about%206,generation%
20came%20from%20solar% 20energy (last visited Jan. 12, 2024).
2 EIA, Florida, State Profile and Energy Estimates, Data, https://www.eia.gov/state/data.php?sid=FL (last visited Jan. 12,
2024). These figures reflect consumption in 2021, the most recent period reported by EIA for the state.
3 Florida Public Service Commission (FPSC), Review of the 2023 Ten-Year Site Plans of Florida’s Electric Utilities,
available at https://www.floridapsc.com/pscfiles/website-files/PDF/Utilities/Electricgas/TenYearSitePlans//2023/ Review.pdf
(last visited Jan. 12, 2024).
4 Id. at 42.
5 FPSC, Facts and Figures of the Florida Utility Industry, 2023, at 17, https://www.floridapsc.com/pscfiles/website-
files/PDF/Publications/Reports/General/FactsAndFigures/April% 202023.pdf (last visited Jan. 15, 2024).
6 FPSC, supra note 3, at 3.
7 Id.
STORAGE NAME: h1645e.COM PAGE: 2
DATE: 2/17/2024
Since 2001, utility-scale electric generation from renewable resources in Florida had grown only 28
percent through 2016, but had grown over 300 percent by 2022. 8 Customer-owned renewable
generation connected to the electric grid in Florida has also grown dramatically in recent years,
increasing 460 percent from 2018 to 2022. This growth appears to correlate with decreasing prices for
both utility-scale and customer-owned solar generation systems.9
In the transportation sector, the market for electric vehicles (EV) in Florida has grown significantly in
recent years and is expected to continue growing.10 Including both full battery electric vehicles and
plug-in hybrid electric vehicles, only 21,700 EVs were registered in Florida in 2016; that number
increased to 213,800 in 2022, second only to California. 11 Florida’s generating electric utilities
anticipate that annual EV energy consumption in their service territories will increase at a rate of almost
20% per year through 2032 and will comprise 3.9 percent of their net energy for load and 4 percent of
summer peak demand in 2032.12 This growth is accounted for in utility planning.13 Registrations for
compressed natural gas vehicles in Florida have declined from 18,000 in 2016 to 400 in 2022, and
there is no data for registration of hydrogen-fueled vehicles in Florida for 2022.14 Gasoline powered
vehicles still account for the overwhelming majority of vehicle registrations in Florida, with almost 16
million registered in Florida.15
The United States Environmental Protection Agency (EPA) maintains an inventory of greenhouse gas
(GHG) emissions by state, end-use sector, and type of gas, with the most recent inventory data for
2021.16 According to this inventory, Florida’s net GHG emissions for all sectors peaked in 2005 and
were slightly lower (0.7 percent) in 2021 as compared to 2008. 17 GHGs reported to the EPA by large
facilities 18 in Florida have declined from 147 million metric tons in 2010 to 113 million metric tons in
2022.19 In 2021, the transportation sector accounted for 41 percent of Florida’s GHG emissions, the
electric power industry accounted for 35 percent, and the remaining 24 percent was associated with the
industrial, commercial, agricultural, and residential sectors. 20
State Energy Policy and Governance (Sections 8-10)
8 EIA, Electricity Data Browser,
https://www.eia.gov/electricity/data/browser/#/topic/0?agg=2, 0,1& fuel= 02fh& geo= g000001&sec=g&linechart=ELEC.GEN.
AOR-US-99.A~ELEC.GEN.AOR-FL-99.A&columnc hart=ELE C.GEN.AOR-US-99.A&map=ELEC.GE N.AOR-US-
99.A&freq=A&start=2001&end=2022&chartindexed=1&ctype=linechart<ype=pin&rtype=s&maptype=0& rse=0&pin= (last
visited Jan. 12, 2024).
9 See, e.g., NREL, Documenting a Decade of Cost Declines for PV Systems , Feb. 10, 2021,
https://www.nrel.gov/news/program/2021/documenting-a-decade-of-cost-declines-for-pv-systems.html (last visited Jan.
12, 2024) (stating that, from 2010 to 2020, there had been a 64%, 69%, and 82% reduction in the cost of residential,
commercial-rooftop, and utility-scale PV systems, respectively and that a significant portion of the cost declines over that
decade can be attributed to an 85% cost decline in module price).
10 Florida Department of Transportation (FDOT), Florida's Electric Vehicle Infrastructure Deployment Plan, August 2023,
at 17, https://fdotwww.blob.core.windows.net/sitefinity/docs/default -
source/emergingtechnologies/evprogram/2023_florida's -evidp_update_092923.pdf?s fvrsn=1e4aee0_1 (last visited Jan.
15, 2024).
11 U.S Department of Energy (DOE), Alternative Fuels Data Center,
https://afdc.energy.gov/transatlas/#/?state=FL& view= vehicle_count (last visited Jan. 15, 2024).
12 FPSC, supra note 3, at 5-6, 19.
13 Id. at 17-20/.
14 DOE, supra note 11.
15 Id.
16 For purposes of the EPA’s inventory, GHGs include carbon dioxide, methane, fluorinated gases, and nitrous oxide. The
inventory also accounts for changes associated with land use and forestry that affect the land’s ability to serve as a sink
for GHG emissions. EPA, Greenhouse Gas Inventory Data Explorer,
https://cfpub.epa.gov/ghgdata/inventoryexplorer/#iallsectors/allsectors/allgas/gas/all (last visited Jan, 15, 2024).
17 Id.
18 Facilities that emit 25,000 metric tons or more per year of GHGs are required to annually report their GHG emissions to
the EPA. Roughly half of total U.S. GHG emissions are reported by direct emitters. EPA, Facility Level Information on
Greenhouse Gases Tool, https://ghgdata.epa.gov/ghgp/main.do?site_preference=normal (last visited Jan. 12, 2024).
19 Id.
20 EPA, supra note 16.
STORAGE NAME: h1645e.COM PAGE: 3
DATE: 2/17/2024
Present Situation
In 1974, in response to the 1973-1974 oil embargo,21 the Legislature, upon finding that a lack of
accurate and relevant information was hampering its ability to develop energy policy to address the
energy resource shortages facing the state, created an “energy data center” to collect data on
production, refinement, transportation, storage, and sale of energy resources in Florida, including all
types of fossil fuels, nuclear energy, and renewables.22 Three years later, the Legislature developed an
energy policy statement with a focus on energy conservation, alternative energy resources, and public
education about energy use.23 This energy policy statement is still mostly intact in Florida law.24
In 1978, the Legislature transferred the duties of the energy data center to the former Department of
Administration and expanded those duties to include additional data analysis and forecasting, public
education, promoting conservation, and coordinating state energy-related programs.25 This list of duties
is now reflected in the duties established in current law for the Department of Agriculture and
Consumer Services (DACS).26
Florida’s current energy policies are largely established through various provisions of law related to
specific aspects of energy production, distribution, sales, and use. The Legislature last addressed
energy policy at a holistic level in 2008,27 when it adopted the following statement of intent with regard
to energy resource planning and development, which is unchanged in current law: 28
The Legislature finds that the state’s energy security can be increased by lessening
dependence on foreign oil; that the impacts of global climate change can be reduced through
the reduction of greenhouse gas emissions; and that the implementation of alternative energy
technologies can be a source of new jobs and employment opportunities for many Floridians.
The Legislature further finds that the state is positioned at the front line against potential impacts
of global climate change. Human and economic costs of those impacts can be averted by global
actions and, where necessary, adapted to by a concerted effort to make Florida’s communities
more resilient and less vulnerable to these impacts. In focusing the government’s policy and
efforts to benefit and protect our state, its citizens, and its resources, the Legislature believes
that a single government entity with a specific focus on energy and climate change is both
desirable and advantageous. Further, the Legislature finds that energy infrastructure provides
the foundation for secure and reliable access to the energy supplies and services on which
Florida depends. Therefore, there is significant value to Florida consumers that comes from
investment in Florida’s energy infrastructure that increases system reliability, enhances energy
independence and diversification, stabilizes energy costs, and reduces greenhouse gas
emissions.
In 2008, the Legislature also adopted the following energy policy statements, which are unchanged in
current law:29
It is the policy of the State of Florida to:
 Develop and promote the effective use of energy in the state, discourage all forms of energy
waste, and recognize and address the potential of global climate change wherever possible.
 Play a leading role in developing and instituting energy management programs aimed at
promoting energy conservation, energy security, and the reduction of greenhouse gas
emissions.
21 See, generally, U.S Department of State, Office of the Historian, Oil Embargo, 1973-1974,
https://history.state.gov/milestones/1969-1976/oil-embargo (last visited Jan. 12, 2024).
22 Ch. 74-186, L.O.F.
23 Ch. 77-334, L.O.F.
24 See s. 377.601(2), F.S.
25 Ch. 78-25, L.O.F.
26 See ss. 377.603 and 377.703, F.S.
27 Ch. 2008-227, L.O.F.
28 S. 377.601(1), F.S.
29 S. 377.601(2), F.S.
STORAGE NAME: h1645e.COM PAGE: 4
DATE: 2/17/2024
 Include energy considerations in all state, regional, and local planning.
 Utilize and manage effectively energy resources used within state agencies.
 Encourage local gover