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Enacted Budget Allocates $79M to Promote Energy Diversity in Florida

June 18, 2008
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Gov. Charlie Crist signed the fiscal year 2008-09 budget into law last week, allocating nearly $79 million for energy-related projects to increase research and stimulate development and commercialization of alternative and renewable energy sources throughout Florida.
 
The Energy Diversity Package approved by lawmakers is significantly different from the $200 million proposal outlined by Gov. Crist earlier this year, with only a few of the original proposals left intact (see the Feb. 6, 2008 issue of the Digest). However, the appropriation is welcome news for the state’s technology-based economic development strategy, as Florida is one of many states facing a decline in revenue. Last week, Gov. Crist ordered all state agencies to reduce spending by 4 percent in the coming fiscal year.
 
Lawmakers appropriated funding for the following projects under the Energy Diversity Package:

  • $50 million for the Florida Energy Systems Consortium, a group of five Florida universities, to focus on R&D of innovative energy technologies and strategies;
  • $8.5 million for a solar field installation at Florida Gulf Coast University;
  • $8 million for matching grants for demonstration, commercialization and R&D relating to bioenergy; and,
  • $7 million for the Renewable Energy and Energy Efficient Technologies grant program for R&D and technology demonstration.  

Lawmakers also provided a boost in tax incentives aimed at supporting high-wage jobs and research in high-impact sectors. The enacted budget includes $21.6 million for the Qualified Target Industries Tax Refund Incentive, Qualified Defense Contractors Tax Refund Incentive, and the High Impact Performance Incentive – slightly less than the governor’s recommendation, but an increase over last fiscal year. However, legislation designed to provide tax credits for R&D expenses to qualifying businesses, HB 733, died in committee earlier this session.
 
Enterprise Florida will receive an increase in funding over last fiscal year for a total of $11.9 million, in addition to existing funds of $4.9 million. Space Florida is slated to receive $4 million from the general fund -- $4.5 million less than the governor’s recommendation.
 
The economic development transportation trust fund budget includes $14.5 million for space and aerospace infrastructure to make improvements in order to attract new space vehicle testing and businesses to the state.
 
Lawmakers did not replenish the Innovation Incentive Fund, which was depleted over the last year with investments to lure the Max Planck facility and a research initiative with the Oregon Health and Science University. The state has dedicated $450 million to the fund since 2006 (see the May 7, 2008 issue of the Digest).

The enacted FY 2008-09 budget is available at http://www.leg.state.fl.us.

Florida