Kansas House speaker expects changes to energy legislation

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By JOHN HANNA

Associated Press Writer

TOPEKA, Kan. (AP) -- Opposition to an energy bill from both the left and right shows that supporters probably need to rewrite the measure for it to pass, House Speaker Melvin Neufeld said Thursday.

Neufeld made his comments the day before the House Energy and Utilities Committee planned to take up the bill. Some committee members prepared numerous amendments and anticipated a long debate, while others hoped to postpone the discussion.

The bill would permit Sunflower Electric Power Corp. to build two coal-fired power plants outside Holcomb, in Finney County. Since October, the $3.6 billion project has been blocked by Gov. Kathleen Sebelius' top environmental regulator.

But the measure also would impose the state's first rules on carbon dioxide emissions, which many scientists have linked to global warming. Those rules would apply to new power plants, and utilities failing to comply would face a tax of $3 for each ton of excess emissions.

Environmentalists oppose the coal-fired plants, arguing the new CO2 rules would be far too weak and the carbon tax far too low to encourage utilities to lower their emissions. Meanwhile, some legislators and anti-tax groups oppose imposing any carbon tax, viewing it as radical policy that will hurt the economy.

Neufeld said that if criticism is coming from opposite sides, the bill probably represents a compromise.

But the Ingalls Republican added: "That also means there are not the votes to pass it without amending it."

The measure was drafted by the Republican chairmen and top Democrats on the House and Senate utilities committee, and an identical bill was introduced in the Senate.

Some House committee members have been discussing -- and drafting -- proposed amendments for several days.

"Potentially, I've got two dozen," said Rep. Tom Sloan, a Lawrence Republican.

Sloan said many of his proposed changes focus on the proposed rules for CO2 emissions, which would apply to new power plants no matter what fuel they used to generate electricity.

For new coal-fired power plants, the CO2 allowed would be less than the emissions of any existing Kansas plant in pounds per megawatt hour and drop 20 percent after a new plant has been in operation a year. The rules would apply to Sunflower's project.

But utilities could "offset" -- lower their emissions on paper -- if they've invested in a wind farm since 2000 or in technology to capture and store CO2 emissions, or if they develop conservation or beautification programs.

Sebelius and environmentalists argue the rules are so generous that Sunflower's new plants would be treated as if they produced zero CO2 emissions, even though their projected output is 11 million tons a year -- still less per megawatt hour than any existing Kansas plant.

Sloan said he wants to remove the carbon tax and the offset program from the bill. He'd keep the CO2 limits but have private, "green" rating organizations determine whether utilities are doing enough to lessen their emissions.

"I want a system that would work," he said. "Creating a bureaucracy in the Department of Health and Environment to try and figure out how much mitigation occurs because somebody planted a wind break or some city planted trees for beautification is just going to be a nightmare."

Groups like Americans for Prosperity and Americans for Tax Reform are pushing for removal of the carbon tax, the offset program -- and the emissions limits.

"They establish a new tax statute and will make Kansas less competitive by hanging a sword of Damocles that will threaten every business thinking of starting in or relocating to Kansas," said Grover Norquist, Americans for Tax Reform's president, who had a Statehouse news conference Thursday.

Rep. Joshua Svaty, an Ellsworth Democrat who views the CO2 rules, offset program and carbon tax as too weak, said those proposals probably will be removed because of questions about them.

But Rep. Vaughn Flora, a Topeka Democrat, said some committee members have talked about adjourning its meeting Friday, so debate is postponed until next week. The Senate committee doesn't plan to debate its bill until next week.

"I don't think we've had enough time to absorb all the material," Flora said.

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Energy bills are SB 515 and HB 2711.

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