Emissions Trading & Markets – Florida’s Climate Protection Act
U.S. Regulatory Programs and Markets:
On June 25, 2008, Florida Governor Charles Crist signed into law, House Bill 7135, enacting several new energy and climate change policies. The policies include the Florida Climate Protection Act, which authorizes the Department of Environmental Protection to develop an electric-utility greenhouse gas (GHG) cap-and-trade program. Pending legislative approval of the final plan, the cap-and-trade program may begin operation as soon as January 1, 2010.
Among other goals, the program will develop a timeline to reduce electric sector GHG emissions to 2000 levels by 2017, 1990 levels by 2025, and 80 percent below 1990 levels by 2005, in accordance with Governor Crist’s Executive Order 07-127 from July 2007.
This legislation authorizes the department to adopt rules for a cap-and-trade program to reduce greenhouse gas emissions from electric utilities. In proceeding with the cap-and-trade rule, the department will be following and considering the work of the Governor’s Climate Action Team and its Phase II report delivered in October, 2008. See the report and updates at the Florida Climate Change website.
The legislation sets forth a number of new requirements and goals, including the following:
- Consolidating state energy policy within the Florida Energy and Climate Commission, established within the Executive Office of the Governor.
- Creating a Renewable Portfolio Standard for utilities as well as a Renewable Fuel Standard.
- Requiring major emitters to report emissions through The Climate Registry and calling for the development of a cap-and-trade system to regulate greenhouse gas emissions.