SESSION OF 2001


SUPPLEMENTAL NOTE ON
SUBSTITUTE FOR HOUSE BILL NO. 2244


As Amended by House Committee of the Whole


Brief (1)



Sub. for HB 2244 would establish the Kansas Energy Resources Coordinating Council to formulate and update on an annual basis a comprehensive state plan for coordination of management, conservation, and development of energy resources. The plan must include the Council's recommendations to accomplish such coordination.



Plan Development. In formulating this plan, the Council must consider:



In developing the plan, the Council would: collect and compile information pertaining to the use of energy and availability of energy supplies in Kansas; seek advice from the general public and committees of knowledgeable individuals; work cooperatively with the Kansas Corporation Commission, the Kansas Geological Survey, the Kansas Department of Commerce and Housing, the Department of Administration, other interested state agencies, and other government agencies.



Other Responsibilities of the Council. In addition to developing and updating the state plan, the Council would be required to recommend guidelines as to when an energy resources emergency exists in Kansas. The Council also would be required, if requested by the Governor or Legislature, to review, evaluate, and make recommendations on any state agency's budget estimates concerning energy resources.



Council Membership and Staff Support. The Council would be composed of 21 members, ten of whom would be appointed by the Governor. The Governor's appointees would include an energy economist on the faculty of a Kansas Regents' institution or Washburn University, three energy consumers, and members representing an oil producer; a natural gas producer; an investor-owned electric generator; a rural electric cooperative; a municipal electric utility; and an electric generator using renewable energy resources. The other members would include: the Chairperson, Vice Chairperson, and Ranking Minority Member of the House and Senate Utilities Committees; the Secretary of Commerce and Housing or designee; the Secretary of Administration or designee; the State Geologist or designee; the Chairperson of the Kansas Corporation Commission or designee; and the Consumer Counsel of the Citizens' Utility Ratepayer Board or designee. The Council Chairperson would alternate between the chairpersons of the House and Senate Utilities Committees. The Council may avail itself of legislative staff support and technical and clerical support from the Kansas Corporation Commission. Citizens' advisory committees may be appointed to assist the Council.



Funding. Funding of the Council would be subject to appropriations. Expenditures for the Council's operations must be approved by the Chairperson of the Council.





Background



As part of a study on ethanol and energy-related issues, the Special Committee on Utilities considered the possibility of creating a new state energy office or an energy board to make recommendations concerning energy policy in Kansas. The Special Committee recommended that the appropriate House and Senate committees examine that possibility further. HB 2244 was drafted in response to that charge.



Proponents of the bill included: Kyle Wetzel, Aerotech Engineering & Research Corp.; Bruce Snead, City Commissioner and Mayor Pro-tem of Manhattan; and Jim Ludwig, Western Resources. Opponents included the Vice-President of Kansas Electric Power Cooperative (KEPCo) who also spoke on behalf of Kansas Electric Cooperatives, Kansas City Power and Light, and Sunflower Electric Cooperative, Inc. Mr. Ludwig, the KEPCo spokesperson, and staff of the Kansas Corporation Commission proposed amendments to the bill. Many of those recommendations were ultimately incorporated into the substitute version of the bill.



The House Committee amended the bill to: delete much of the language prescribing the goals and responsibilities of the Council; add a member representing rural electric cooperatives to the Council; delete assessments against electric and natural gas utilities as a means of funding the Council; authorize the Council to recommend (but not establish) guidelines concerning the existence of energy resources emergencies; specify that only nonproprietary information may be provided to the Council; and clarify that all Council members would be voting members.



The House Committee of the Whole amended the bill with respect to the Council membership, to allow the energy economist to be a Washburn University faculty member and to include a representative of a municipal electric utility.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi