$200M for Energy Diversity Package in Florida Budget Recommendation

Gov. Charlie Crist outlined several new alternative and renewable energy initiatives aimed at diversifying the state’s economy and creating high-wage jobs in his fiscal year 2008-09 budget recommendation. Many of the new proposals would be financed by tapping into the state’s budget reserves and relying on casino and lottery revenues.

 

The governor’s proposal invests $200 million in energy-related research and commercialization projects, along with rebates and tax credits for consumers, that build on the policy framework of the Serve to Preserve Climate Change Summit held last summer. Funding is directed to implement new research priorities for the state, including:

• $100 million for Green Tech Recruitment, an innovation incentive program for businesses to research and develop green technology projects;
• $20 million for a Renewable Energy Technology Grant Program, encouraging R&D and commercialization of alternative energy;
• $20 million for a Biofuels Grant Program, which provides funding for ethanol, biodiesel, biomass and the conversion of waste materials to energy; and,
• $10 million for the Florida Atlantic University Center of Excellence in Ocean Energy Technology to conduct research on generating electricity from ocean energy.

Upon depleting the Innovation Incentive Fund over the last two months with a $94 million investment to lure the Max Planck facility and $60 million for a research initiative with the Oregon Health and Science University, Gov. Crist is asking lawmakers to restore $200 million to the fund. This request is $50 million less than that of last fiscal year and includes $100 million for the aforementioned Green Tech Recruitment proposal.

 

The Office of Tourism, Trade and Economic Development is slated to receive $407.9 million for program support, a decrease of $47.9 million from the FY 2007-08 appropriation. Despite the overall decline in funding, several key economic development programs would see their budgets increase or remain level. Funding requests for specific programs include:

• $10.6 million – a $3 million increase over last fiscal year – for Enterprise Florida, a public-private partnership serving as the state’s primary organization focused on statewide economic development. This is in addition to existing funds of $4.9 million for a total $15.5 million.
• $8.5 million, an increase of $1.5 million, for Space Florida to commercialize space-specific research conducted by Florida’s public institutions and develop education programs in science, technology, engineering and mathematics in K-20 students.
• $1.3 million for the Regional Rural Development Grant Program and the Rural Community Development Revolving Loan Fund – the same funding level as last fiscal year.

Also included in the governor’s budget recommendation for the Office of Tourism, Trade and Economic Development is $23.5 million – an increase of $5.7 million – for tax incentives aimed at supporting high-wage jobs and research in high-impact sectors. This includes the Qualified Target Industries Tax Refund Incentive, Qualified Defense Contractors Tax Refund Incentive, and the High-Impact Performance Incentive.

 

Funding for the university-based Centers of Excellence program would decrease by $39.7 million for a total $60.2 million in FY 2008-09. A portion of the funds will be used to conduct an external review to determine the viability of future commercialization of the proposed research, according to budget documents.

 

Gov. Crist also recommends $74.3 million to universities and $26.6 million to community colleges for the state’s portion of matching Challenge Grants, which provide funding for scholarships, endowed chairs and facilities. One specific item of note, the governor is requesting $1.2 million for a partnership between the University and Central Florida and the Burnham Research Institute.

 

Gov. Crist’s FY 2008-09 budget recommendation can be accessed at: http://peoplesbudget.state.fl.us/