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Minutes for SB24 - Committee on Energy, Utilities and Telecommunications

Short Title

Prohibiting municipalities from imposing restrictions on customer's use of energy based upon source of energy.

Minutes Content for Tue, Mar 16, 2021

Chair Seiwert asked the committee to review the minutes of March 11, 2021 meeting.  Representative Jim Gartner moved that the minutes be approved as written, Representative Schreiber seconded the motion.  The minutes were approved without objection.

Chair Seiwert opened the hearing on SB24 at 9:30 am. 

Nick Myer, Assistant Revisor, provided an overview of SB24.  Mr Myer stood for questions from the committee.

PROPONENTS:

Patrick Vogelsberg, Manager, Government Affairs, Kansas Gas Service. Mr Vogelsberg'S testimony indicates SB24 does 4 things: 1) ensures that Kansans have a choice in the energy they wish to use in their homes and businesses; 2) helps keep utility bills low; 3) provides regulatory certainty; and 4) provides guidance from the state to communities as they develop sustainability plans. (Attachment 1) Mr Vogelsberg stood for questions.  Questions from the committee were addressed.

Jerry Watkins, General Manager, Black Hills Energy.  Mr Watkins provided his testimony to the committee and supports preserving customer choice, natural gas as a great value for customers and the importance of a statewide approach for energy policy. (Attachment 2)  Mr Watkins stood for questions.  Questions from the committee were addressed.

Bart Armstrong, president, CO-KS Division Atmos Energy Corporation.  Mr Armstrong said as the 3rd gas company to testify, his testimony is similar in  context and stands for any additional questions the committee may have. (Attachment 3)

Scott Schneider, on behalf of Kansas Restaurant and Hospitality Association.  Mr Schneider provided his testimony to the committee on the impacts on a restriction of natural gas to the restaurant industry. (Attachment 4)  Mr Schneider stood for questions.  Questions from the committee were addressed.

Daniel Murray, Kansas State Director, National Federation of Independent Business.  Mr Murray described the members believe that the energy costs continue to be a significant problem for small business owners.  Additionally they believe they should not have a ban on the types of sources or energy available to them. (Attachment 5)  Mr Murray stood for questions. Questions from the committee were addressed.

Jonathan Lueth, on behalf of Americans for Prosperity.  Mr Lueth's testimony supports SB24, it would ensure that consumers can choose their fuel of choice.  More than 70% of Kansans rely on natural gas or propane for home heating. Eliminating consumer choice will only make energy poverty worse in our state. (Attachment 6) Mr Lueth stood for questions.  Questions from the committee were addressed.

Chair Seiwert drew the committee attention to the written opponent testimony. 

Written Testimony was provided by:

Jason Watkins, Wichita Regional Chamber of Commerce, (Attachment 7)

Ed Cross, President Kansas Independent Oil and Gas Association (Attachment 8)

Kent Eckles on behalf of Kansas Chamber, (Attachment 9)

Mark Tomb, Vice President of Government Affairs, Kansas Association of Realtors (Attachment 10)

Sean Miller, Kansas Building Industry Association, (Attachment 11)

Curtis Sneden, President of the Greater Topeka Chamber of Commerce, (Attachment 12)

Chris M. McGown, EKOGA President (Attachment 13)

Ernest Kutzley, AARP (Attachment 14)

Seeing no additional proponents, Chair Sewiert closed the proponents portion of the hearing.

OPPONENTS

Tad Kramer, of Big Springs Kansas, supports Home Rule and his testimony says that SB24 is the exact opposite of what we should be doing.

(Attachment 15)

Rabi Moti Rieber, Kansas Interfaith Action, Rabi Moti Rieber's testimony is that in order to avoid the worst repercussions of human-caused climate disruption, we need to move quickly to decarbonize our economy. (Attachment 16)

Zack Pistoria, Kansas Lobbyist, Seirra Club, Mr Pistoria's testimony is that SB24 is premature and clearly disrespects the spirit of Home Rule and the powers prescribed to cities in the Kansas Constitution.  More Kansans are realizing that some energy types have disproportionate costs.  Cities should be able to determine what energy sources work best for their community. The Energy Choice Act does not sound like it gives much choice to our local communities.  Kansas Sierra Club would support the included amendment to help SB24. (Attachment 17)

Paul Snider, on behalf of Natural Resources Defense Council (NRDC) The NRDC opposes SB24 because it is an17 overreaction to issues far away from Kansas.  They are including an amendment supported by several organization, that if adopted would remove NRDC's opposition and better align the bill with what appears to be the proponent's goals. (Attachment 18)

Eric Sartorius, Executive Director, League of Kansas Municipalities - Mr Sartorius says to move SB24 forward, they believe three important changes are advisable.  A proposed amendment is included.(Attachment 19)

Written Testimony was provided by:

John Shively, Director of the Office of Justice, Sisters of Charity of Leavenworth (Attachment 20)

Bradley R. Finkeldei, Mayor, City of Lawrence (Attachment 21)

Kelly Gilbert, Executive Director and Emily Wolfe, Program Coordinator, Metropolitan Energy Center (Attachment 22)

Dick Carter on behalf of Mike Kloss, Attorney, City of Overland Park (Attachment 23)

Stuart Little, Little Government Relations (Attachment 24)

Dorothy Barnett, Climate + Energy Project (Attachment 25)

Susie Scott, Wichita (Attachment 26)

Sage Farha, Wichita (Attachment 27)

Dolly Farha, Belle Plaine, KS (Attachment 28)

Seeing no additional opponents, Chair Seiwert closed the opponent portion of the hearing.

NEUTRALS

Jeff McClanahan, KCC Utilities Division Director, provided neutral testimony that limiting future growth prospects will have the effect of increaing rates to existing customers due to fewer customers paying for service. (Attachment 29)

Written Only testimony was provided by:

David Nickel, C.U.R.B. (Attachment 30)

Kari Rinker, American Heart Association (Attachment 31)

Seeing no additional neutral, Chair Seiwert closed the neutral portion of the hearing.

Chair Seiwert closed the hearing on SB24 at 10:50 am.

The Chair adjourned the committee at 10:50 am.

The next meeting is scheduled for March 18, 2021 at 9:00 am in room 582N.