Contents of Kan. energy legislation summarized

With BC-KS-XGR--Coal Fight

TOPEKA, Kan. (AP) -- Here is a summary of energy legislation signed Friday by Gov. Mark Parkinson.

Parkinson demanded approval of the bill as part of a deal he struck with Sunflower Electric Power Corp., allowing the Hays-based utility to build a coal-fired power plant outside Holcomb in Finney County.

RENEWABLE ENERGY

-- Wind farms or other renewable sources must cover 10 percent of public utilities' peak electric demand from its Kansas customers by 2011, 15 percent by 2016 and 20 percent by 2020. The requirement would not apply to city-owned utilities.

-- A utility could either generate the power from renewable resources or purchase it from another supplier. Each megawatt of energy from renewable sources brought on line starting in 2000 would count as 1.1 megawatts.

-- The Kansas Corporation Commission will set up a program to allow utilities to purchase renewable energy credits from other utilities.

-- Utilities will be allowed to include "reasonable costs" for meeting the requirement in their rates. The KCC will establish penalties for failing to comply with the requirements, though it has the authority to waive penalties in some circumstances.

NET METERING

-- Utilities must allow "net metering" for customers who have their own small, renewable-energy generators, up to 25 kilowatts. Consumers could get credit on their bills for the power they generate on their own.

-- If a consumer generates more power than he needs, the utility will carry forward a credit on his monthly bills until the end of the year.

REGULATORY CHANGES

-- The secretary of health and environment cannot impose new air pollution rules that are stricter than those imposed by the federal government, unless the Legislature approved them first.

-- The secretary must approve an air-quality permit if the applicant meets all existing pollution-control regulations.

-- The secretary's emergency powers to act to protect the environment or public health will be limited to imminent threats. The secretary can issue an order for seven days, then go to court to make it permanent. But the secretary can't use emergency powers to block an air-quality permit for a plant yet to be built.

-- A law allowing electric cooperatives with fewer than 15,000 customers to exempt themselves from Kansas Corporation commission regulation of their rates will be expanded to include other, larger cooperatives, including Sunflower.

ENERGY CONSERVATION

-- The secretary of administration has until the end of November 2010 to establish rules to make sure state agencies are purchasing energy efficient lighting, computers and office equipment.

-- Starting at the end of November 2010, state agencies will have to conduct energy audits on their property at least once every five years.

-- Also by the end of November 2010, the secretary of administration must set new energy efficiency standards for state-owned buildings and leased office space.

-- The secretary of administration must adopt rules by the end of November 2010 requiring state vehicles purchased in 2011 to be at least 10 percent more fuel efficient than those purchased in 2008, if it's cost effective over the life of the vehicle.

-- The KCC will be required to increase participation by cities, counties and school districts in an existing conservation program.

OTHER PROVISIONS

-- New coal-fired power plants must buy at least 5 percent of their coal from Kansas if it is competitive in cost and of acceptable quality.

-- The Legislature will establish a Joint Committee on Energy and Environmental Policy.

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Sources: Senate Sub for HB 2369, Kansas Legislative Research Department.