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Weekly Interim Update from November 6, 2015

Energy

HB 191- Relating to Regulation of Oil and Gas Resources
On Tuesday, November 3rd, HB 191, relating to Regulation of Oil and Gas Resources, by Rep. Ray Rodrigues (R-Fort Myers) passed through the House Agriculture & Natural Resources Subcommittee with 9 yeas and 4 nays.

This bill makes many revisions to the Oil and Gas Program (program) to make this program safer and more effective for all involved. The Department of Environmental Protection’s (DEP) Mining and Minerals Regulation Program in the Division of Water Resource Management (Division) oversees permitting for oil and gas drilling, production, and exploration within Florida through its Oil and Gas Program. The Program’s primary responsibilities include conservation of oil and gas resources, correlative rights protection, maintenance of health and human safety, and environmental protection.

HB 191 will now head to the House Agriculture & Natural Resources Appropriations Subcommittee for a vote. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, spoke in support of this bill.

AIF supports the need to maintain appropriate permitting laws to protect the environment, to enhance efficiency between industry and the state, and to ensure appropriate standards are clearly communicated.

AIF released the following statement regarding HB 191:

AIF Applauds House Agriculture & Natural Resources Subcommittee for
Passing House Bill 191 to Regulate Oil & Gas Industry

Tallahassee, Fla. – Associated Industries of Florida (AIF) today applauded the House Agriculture & Natural Resources Subcommittee for passing House Bill 191.  This legislation, sponsored by Representative Ray Rodrigues (R-Estero), would allow the Florida Department of Environmental Protection (DEP) to better govern the onshore oil and gas industry through increased regulation and oversight.

 “The onshore oil and gas industry continues to contribute to Florida’s bottom line, lessen our dependence on foreign sources of oil and employ Floridians,” said Brewster Bevis, senior vice president of state and federal affairs for AIF.  “This is a responsible industry that’s been operating safely in the State of Florida for decades; but, advances in technology have made it necessary to bring clarity to the rules and regulations governing this industry, so it may continue to operate and contribute to Florida’s economy.”

“AIF applauds the members of the House Agriculture & Natural Resources Subcommittee for the passage of this good bill today, as well as Representative Rodrigues for championing this effort,” continued Bevis.  “While this bill is not perfect – for instance we continue to have concerns about instituting a moratorium until a study is conducted and new rules are adopted by DEP – we do believe it has many good provisions, including clarifying the definition of high-pressure well stimulation; requiring a permit for the use of those high-pressure well stimulation techniques; and ensuring the disclosure of all chemicals to FracFocus by the DEP, so we know what chemicals are being introduced into Florida’s environment.”

“We look forward to continuing to work with the sponsor, as well as Senator Garrett Richter, who is sponsoring this legislation in the Florida Senate, and supporting this smart legislation throughout the 2016 Legislative Session, which will bring good governance to the onshore oil and gas industry,” concluded Bevis.

For more information on AIF, please visit AIF.com and follow @VoiceofFLBiz.

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SB 90- Relating to Natural Gas Rebate Program
On Tuesday, November 3rd, SB 90, relating to the Natural Gas Rebate Program, by Senator Wilton Simpson (R-Trilby) unanimously passed through the Senate Communications, Energy, and Public Utilities Committee with 8 yeas and 0 nays.

Since 2013 there has been a Natural Gas Fuel Fleet Vehicle Rebate Program (program) created within the Department of Agriculture and Consumer Services (DACS) to “help reduce transportation costs in this state and encourage freight mobility investments that contribute to the economic growth of the state.” Beginning with Fiscal Year 2013-2014 and continuing through Fiscal Year 2017-2018 (five years), DACS is required to award rebates, to those eligible, for the costs of converting a diesel- or gasoline-powered motor vehicle to a natural gas fuel-powered motor vehicle on or after July 1, 2013. An applicant is eligible to receive a maximum rebate of $25,000 per vehicle up to a total of $250,000 per applicant per fiscal year, on a first-come, first-served basis.

The changes in this bill would now allow DACS to use any unencumbered funds, if any, that remain after June 30th of each fiscal year to award additional rebates.

The next committee hearing for SB 90 is in the Senate Appropriations Subcommittee on General Government .  AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, stood in support of this bill.

AIF supports the continued funding of the natural gas fuel fleet vehicle rebate program to better allow companies the option to convert their fleets to natural gas.