Climate and energy

Summary: HB 2014 recommended for passage without a roll call vote, no headcount. (Check headcounts on other votes on amendments to bill below) final vote tomorrow. WHOOPS, maybe not – wait for calendar to come out, they may be pro forma tomorrow.

Drama/ speculation – the votes on the amendments are the only litmus test for the bill vote right now. Two significant amendments – the Governor’s energy bill was re-proposed, with an amendment that would seem to allow some sort of compromise on air emissions, and it failed 82-40. Another amendment passed – it would apparently (MH has not seen exact language) keep counties and munis from passing restrictive covenants against solar panels. A similar provision in committee about tanked a net metering bill. This amendment passed by 66-53.

So… try that math.

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This morning, the full Kansas House is expected to debate and hold a preliminary vote on the coal bill, HB 2014. As with the three coal bills last year, this one mixes some limited renewable and energy efficiency policies with provisions that would require KDHE to give Sunflower Electric the air permit for two 700 MW coal-fired power plants in Holcomb, KS.

Those plants would emit over 11 million tons of carbon dioxide per year. 1,200 MW would be owned by out of state interests Tri-State and Golden Spread. According to the Supreme Court, carbon dioxide is a greenhouse gas that can be regulated under the Clean Air Act, and last week the EPA indicated it would soon release an endangerment finding.

What solid state energy policies look like – CEP recently put out a policy resources document looking at different state energy policies throughout the Midwest. Likewise, the federal economic stimulus package is very clear on what types of state energy policies will qualify states for an additional $2.1 billion in competitive energy dollars – and the checklist looks like this:

• integrated resource planning
• rate design that reimburses energy efficiency (possibly decoupling)
• residential and commercial energy efficiency building codes
• rate recovery for smart grid investments
• time-based pricing, etc.

Yesterday, the Governor promised to veto this coal bill. Last year, she vetoed all three. House Speaker Melvin Neufeld attempted an override on the second, and failed.

The vote today is expected to pass. However, it remains to be seen whether there will be enough votes to override the all but certain veto of the coal bill. 84 votes are needed.

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Someone came up to me and said – “You’re even sitting in the same place you were last year. This is weird!”

Gaveled in, prayed and pledged. Everyone and no one is paying attention, it’s that kind of day. Miscellaneous business, clean up going on. Honorary resolutions. While this goes on, a few folks buzz around the floor – always interesting to figure out if they are key figures, or proxies for key figures, or if they are just at loose ends and/or need coffee.

Rep. Yoder is appointed to oversee the Committee of the Whole during the KS coal debate. Rep. Knox, vice chair of energy, carries the bill to the floor.

Rep. Knox - this bill is highly anticipated by the whole body. Painstaking process in Energy Committee, result of over 26 bills. All bills had hearings, then were assigned to subcommittees. Some of them combined into this big bill. Transparent and accessible process. This policy is consistent with what this body has done over past five years. We pass good business policies, we help out industry and try to attract them, we also produce good energy policy. We incent agrifuels, we develop oil and gas, and wind energy. We incent oil refining, and pipelines, and nuclear energy. We promote friendly business environment. This bill is in that tradition, and is a comprehenesive energy plan for state of KS. It will provide reliable affordable long-term energy for state. We have seen lots of changes in last 20 years in this country – increased efficiency in homes, cars, but energy demand still ncreases as our standard of living does. Energy and economy go together. KS has lots of old energy production, we need new. We need to replace outdated production and update infrastructure, and so utility rates are going up now. We have to meet these demands with conventional energy production. This bill does have renewables, but those won’t meet all our needs. We need electricity when we want it, 24/7, and we need baseload to do that. HB 2014 has three main parts – (1) it re-establishes rule of law in KS. One man can;t deny an air permit that has no basis in law, or regulation, or anywhere. this bill limits air regualtion to that of federal law. 26 states limit their air emissions regualtions like this. It also limits emergency powers to actual emergencies that are imminent and substantial threats. KDHE secretary still has emergency powers for 72 hours, and then he goes to district court. He can still deal with true emergencies. Thatis good government and good business. (2) EE – for state government (3) moves state in renewables direction. Utilities are voluntarily moving toward RPS. We are just putting it in statute. Testimony in committee said that an RPS is economic development. Industries that manufacture renewables will want to come to KS if they see an RPS. This is consistent with the governor’s bill submitted to our committee. We also have net metering that is fair and statewide. The rural cooperatives figured out how to do that. We also are going to build transmission in a timely manner.

Amendment offered – to clean up language. (minor)

Rep. Neighbor – I have serious concerns about this bill. (1) this is last year’s bill, but worse in some sections. This bill places KS at end of line for federal energy funds. On Feb 17, the federal stimulus package has $45 billion for renewables and efficiency. This bill does not help KS get those dollars. Future Gen – the most advanced CCS project in US – was canceled by federal government. Fed govt is putting carbon regs in place. Other states are canceling those projects due to financial and regulatory concerns. Wall St is refusing to finance those plants. Why let an unregulated utility build a coal plant? The world is worried about greehouse gases. Westar is putting out a 500 MW RFP for new renewables. New coal is too expensive for them to build right now. I have an amendment.

MH – Rep. Neighbor offers governor’s original energy bill HB 2127, with language for KDHE secretary to require offsets as condition for air permit for coal-fired plants.

Neighbor – this amendment offers real renewable policy, a real RPS. It saves utilities from penalties, allows them to recover costs, very fair. It offers TRUE net metering. The other net metering has no net. Utilities can use net metering toward RPS requirements. There are caps for net metering, to protect utility and their distribution lines. The EE provisions use LEED standards.

Rep. Knox and Rep Neighbor

Knox – this is 2127? N – yes, with the Bremby piece covering concern over air permit. K – I oppose this amendment. this is redundant wth 2014. We put the gov. RPS in our bill. The net metering is the same as in our bill, the difference is that we sweep the net monthly, the co-ops helped us do that, this will make our net mtering statewide. The Governor’s bill allows you to use grid as storage battery for free, you feed excess in and pull it back. You size it to your average load. The Governor, at end of month, if you have extra, she lets you accumulate extra in high season and use it in low. You get money, but at end of year the utility sweeps energy in Governor’s bill. We made the sweep go to monthly, the utility keeps any energy that you over-produce. (MH – utility also gets to recover costs of net metering). (long discussion here of net metering) (MH – note, the net metering in the two bill are actually substantially different.) K – I assume this amendment means to gut our bill and pass the Governor’s, and the Governor’s bill does not reestablish rule of law.

Rep. Otto – question for Neighbor. Have you seen those commercials where Obama is talking about clean coal on television? N – no, I’vew been working. I don’t have time to watch TV (laughter) Otto – well. I have been seeing these commercials, our president is in favor of clean coal. If we never build a prototype to start getting there, we won’t get there. Let;s close the lawrnece coal plant, my westar bill is going up and will continue to. This bill won’t close the dirty KC coal plants, my grandkids still get to breathe that air. You should watch those commercials, maybe some state leaders are out of touch with Washington, and myabe the man at the top cares about workers unions jobs than other leaders in this state.

Rep. Svaty – Let me make it clear. The net metering provision in 2014 – you give all your excess pwoer to utility for free. You also have to buy all the meters, there is a substantive difference between 2014 and governor’s bill. Sweeping yearly, and sweeping monthly, that’s a big difference. You get to go home and tell your constituents how this works – they won’t thank you for this version of net metering. You get to tell your constituents that all their excess power, the utility gets to keep for free. I am guessing that your constituent will not be overly thrilled. Net mtering – it take a net, and you then meter it. How does this bill get to net metering at all? It isn’t. It actually has the potetnial to make all our constiutents very upset. We still have parallel generation, we’ve had it for five year, and less than 100 people statewide take advantage of that statute. It doesn’t work. Our cosnitutent want net metering, and parallel gen isn’t cutting it. If you give them a net metering that isn’t net metering – that’s a problem. You won’t be passing real net metering. It is also unfair to suggest thant Bremby had no legal basis for his decision – and that case is pending before KS Supreme COurt. Thatis not a uestion for legislature, it is a question for courts.

Rep. Knox – we will not be at the end of the line for federal energy funds. There are a lot of incentives for renewables, they all apply to this state. And no one uses parallel generation or net metering because its not economic. I live in rural area, everyone wants to put up wind turbine, but I tell them how much it will cost and their return, and that’s a wet blanket. Parallel generation gives them money back. Stimulus package – there is no penalty for coal plant. A coal plant won’t send us to the end of the line. You need conventional production to back up renewables. 50 coal-fired power plants are being built now, in neighboring states, seven in TX alone> there is a general problem with financing, not just with coal. And lots of plants being built in China. Governor’s bill limits net metering to investor owned utilities, rural areas don’t get it. It is not the government’s role to distort it to be a good business plan to have net metering (MH misses). We want to lay foundation for statewide net metering. As energy prices increase it will become better investment. The amendment here is a gut and go and would make our bill useless.

Rep. Neighbor closes on her amendment. Our bill has better net mtering, people actually get a credit. And the base bill also allows rural electric co-ops to deregulate. This is an attemt to deregaulte SUnflower – they will have no oversight or acocuntablity to anyone. When Rep. Knox refers to no penalty on coal, that hasn’t been established yet. Why pass a bill that in near future, when coal will certainly be penalized? Our ratepayers wil be penalized if we build coal. The Thebig difference between bills are how net metering takes place. There will be new federal guidelines on coal and carbon, and the Governor’s bill addresses it. We need to be respnsive to federal rules and regs. 2014 gives Sunflower power to build anywhere they want with no oversight.

Vote on Neighbor amendment – 40 -82. Amendment (governor’s bill) fails.

Rep. Watkins – brings amendments on solar and wind for net metering, getting around restrictive convenants for solar panels so people in cities can net meter.

Rep. Knox – tPeople love renewables but theydon’t have money to do it – unless they live in cities where they have money. In committee we basically took governors bill and made improvements on it. We passed 30 amendments on governor’s bill, it took six hours, and the bill was tabled. I learned from that that KS is not ready for big steps in renewables. We need to keep it simple. Our net metering bill where we did this – the convenants – had long list of opponents. I think this is a great idea but don’t pass this amendment because the counties and municipalities will be against this bill if you do. Take baby steps on this issue. If you take a big step you will fall on your face.

Rep. Watkins – Many of your constituents can’t take advantage of net metering because of restrictive covenants. My constituents deserve the right to participate in the benefits of this bill. If you have constiutents in city they will not benefit from this bill. Support my amendment.

Vote on amendment – 66 favor, 53 against . Amednment passes – homeowners association, etc., can;t restrcit solar panels

Amendment on wind zoning- – Rep. Watkins – amendment fails. (MH – ie, there can be no restrictive covenants on solar now in cities, but against wind towers is okay)

Rep. Dillmore – In OCtober 2007, Dow first topped 14,000. And today, Dow is at 7299. We live in very uncertain times. This bill earns my no vote because of issue of complete deregulation of Sunflower Electric. You can say I am crazy, but what if tristate or golden spread go bankrupt? We don’t know. Who thought the Dow would do this? Sunflower ratepayers will be subject to any amount of rate increases with zero oppoprtunity to object. We have the KCC for a reason. We are going to take that protection comepltely away from Sunflwoer ratepayers, In these times, is that wise? This provision alone earns my no vote. It shoudl earn your no vote as well.

Rep. Sloan – Amednment. Requires that generators that don’t provide retail or wholesale power in KS would have to participate in state RPS, and no more than 50% could be met by out of state requirements. (MH – ie, Tri-Stte would have to get 50% of renewables criteris for KS RPS with KS wind)

Rep. Knox – I oppose this amendment, it didn’t make it on bill in subcommittee. This amendment says if you build generation in state and sell it outside, you have to meet our RPS with in-state wind. This weighs on financing. (epxlains, MH skips) Oppose this amendment.

MH – NOTE – these amendments are NOT passed around anywhere but on the floor, so we don’t get to see them and don’t really know what they say, beyond the explanations on the floor. Always check the bill amendments tomorrow when they go online.

Rep. B Wolf – (tells story about power sales, going out of state for cheaper energy, through power pool purchase) small towns have to go to power pool to get better rate, in OK, let’s hope the Indians don’t cut them off.

Rep. Sloan – this amendment did get on in subcommittee, along with several others I offered. My amendment says if you build coal-ifred power plant in KS, you have to participate in our RPS. If you build power source and it goes out of state, you have to participate. We want a cleaner environment.

Amendment vote – 40 for, 78 against. Motion fails.

Rep. Grant -I’ve lived in same small town for 59 years. I live in coal country in SE KS. We had three companies down there. I have an amendment. (MH – that any new coal plant has to get 5% of coal from KS coal) Rep. Grant again – I hear we can’t use KS coal because of sulfur content. I have one operation in my district that is taking coal and blending with Powder River basin, over in MO. We can do that. This would be economic development for my district.

Rep. Knox – I’m from SE KS too. Grant – you’e not sitting on as much coal as I am. Knox – mine is coal bed methane. Where’s your top vein? Grant – two veins, 14 ft… MH totally misses this technical bit. Knox – those same veins are under my house at about 1,000 feet…. so you are talking about strip mining coal? (MH – how much would it take to get 5% KS coal for 1400 MW plant? What sort of environmental concerns are there for SE KS) Knox – if this is economical, why isn’t it happening already. This sounds interesting, and it should go thru committee process, we don’t want to make great blunder, this might be uneconomic, it might be a burden. Oppose this amendment.

Watkins – this means jobs, the technology will improve. they say there is no such thing as clean coal but I don’t agree its getting better and better. We need all sorts of energy, we need wind, solar, and nuclear. I’m not against any energy. We probably need a second nuclear plant. Electricity is kind of like water – we face water scarcity in future, and all energy takes water to produce. We need to look at it in western KS, these issues. SE KS isn’t known as coal capitol of KS, but it should be. It’s important to us out there, it means jobs and economic development.

Vote on amendment – 51 for 63 against motion fails.

Rep. Kuether – Plenty of you have your mind made up and what I say won’t make a difference, but I will say it anyway. This could take a while. Comment on no penalty in stimulus package for building coal – true. But the stimulus is written for reneewables. If we support HB 2014, we send message that coal is okay, and it;s not. We want our world, not just KS, to be better place. 83 coal plants are shut down across nation because handwritng on wall for CO2 emissions. It’s coming. The Supreme Court clearly told EPA to pay attemtion to CO2 emissions. Bush EPA ignored what SUpreme COurt said, Obama EPA paying attention. Energy stimulus dollars are grant applications. IF we arent a good applicant we don’t get grants. We want turbine mnaufacturing in KS, we want jobs for clean energy. We will use coal as part of mix, sure, but for anyone to tell you there is clean coal, they are lying. clean coal does not yet exist. we are working on it but it’s not here. Ads with Obama on clean coal – he says we put a man on the moon, we can figure out how to get to clean coal. and we can, but we’re not there yet. Bremby section of bill – some say there is regulatory certainty, but this bill guts emergency powers, and strips KS power to protect air quality. This bill is a coal bill, it is to get 1,400 MW of coal passed. The Governor;s bill was about clean energy and didn’t promote coal. If we promote coal we will be at end of line for grant dollars for state. The deregulation provision on co-ops – electric co-op oversight was put into place in 1992, because of the very large co-ops. We have seen what happens with deregulation in federal govenrment, it’s not good. What do we really want to do here – why are we rushing to get one company its coal plant? One company was going to build 500MW in NV – their CEO pulled back because of the economic realities. Too risky right now for ratepayers. We are here in legislature to help out ratepayers. And energy efficiency is easiest, cheapest approach. This bill doesn’t have much of that, no strong provisions. We can say to two coal plants today. It’s not end of energy discusison, but will focus it another way. New steps aren’t easy, but it has to be done. We need to get wind, EE, and net metering done properly, and get energy dollars from federal government. Don’t support this bill.

Rep. Knox closes. This bill is not a complete deregulation of co-ops. The members are in charge of a rural electric co-op, and the methods works. The members will self-regulate. The members can regualte themselves, rather than fall under KCC regulation. And i will mention on CO2, since someone mentioned SUpreme Court decision – the dissenting opinion said that anythign emitted in air can be treated as something to be regulated, from frisbees to flatulence. The court decision was so broad I question its significance. I will spare you my arguments on CO2, but we base so much on what will happen in future, and law right now – CO2 is not regulated. This bill will limit emergency powers of secretary to emergencies, real emergencies we actually see happening. There is basically a coalition supporting this – agriculture worried about emergency powers, and about what is or isn’t regulated, and worried about the precedent set – we need certainty and rule of law so one person doesn’t have unlimited powers. And in this nation, all the coal plants that are idled – 48 coal plants being built right now or are (MH misses) around world development is going on, every 4.5 days a new coal plant opened, usually in India and China. KS energy resources commission also part of this bill, it tries to move us from these issues being so political – this is a very political issue. This commission would have experts who could look at energy issues and advise state government to move us ahead tehcnologically and get us away from partisan points of view. This bill is a balanced approach about doing business in KS. (He lists bill contents) I move that HB 2014 recommended for passage.

HB 2014 recommended for passage – without a division vote called, so we have no roll call numbers on that last vote

— Maril Hazlett, www.climateandenergy.org