Session of 1999
         
SENATE BILL No. 257
         
By Committee on Utilities
         
2-5
         

  9             AN ACT concerning siting of certain electric generation facilities;
10             amending K.S.A. 66-1,159, 66-1,160, 66-1,161, 66-1,162, 66-1,169a
11             and 66-1,169c and K.S.A. 1998 Supp. 66-1,158 and 66-1,169b and
12             repealing the existing sections.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section 1.   K.S.A. 1998 Supp. 66-1,158 is hereby amended to read as
16       follows: 66-1,158. As used in this act, the following words and phrases
17       shall have the meanings ascribed to them herein:
18             (a)   "Commission" means the state corporation commission;.
19             (b)   "Electric generation facility" means any physical plant used for
20       the production or generation of electricity or electric power except that
21       the remodeling, reconditioning or retrofitting of any existing physical
22       plant shall not be deemed an addition to an electric generation facility.
23       Such term shall not include a facility or addition to a facility proposed to
24       be located outside this state if: (1) The need for the facility or addition
25       and the reasonableness of its proposed siting is subject to review by the
26       utility regulatory authority of that state; (2) less than 10% of the retail
27       customers on the electric system intended to be served by such facility
28       or addition are located in this state; and (3) such retail customers located
29       in this state number no more than 15,000;
30             (c) (b)   "Electric utility" means every public utility, as defined by
31       K.S.A. 66-104, and amendments thereto, which owns, controls, operates
32       or manages any equipment, plant or generating machinery for the pro-
33       duction, transmission, delivery or furnishing, of electricity or electric
34       power;.
35             (d) (c)   "Landowner" means any person having an estate or interest
36       in any land, which land is proposed to be acquired by an electric utility
37       in connection with the construction, operation and maintenance of an
38       electric a nuclear generation facility or an addition to an electric a nuclear
39       generation facility;.
40             (d) (1)   "Nuclear generation facility or addition to a nuclear genera-
41       tion facility" means: (A) Any physical plant utilizing nuclear energy as
42       the primary fuel for the production or generation of electricity or electric
43       power; or (B) any addition of nuclear generation capacity to an existing
44       generation facility.
45             (2)   "Nuclear generation facility or addition to a nuclear generation
46       facility" does not include: (A) Remodeling, reconditioning or retrofitting
47       of an existing nuclear plant; (B) construction of nonnuclear generation
48       capacity at the site of an existing nuclear plant; or (C) any facility or
49       addition to a facility proposed to be located outside this state if: (i) The
50       need for the facility or addition and the reasonableness of its proposed
51       siting is subject to review by the utility regulatory authority of that state;
52       (ii) less than 10% of the retail customers on the electric system intended
53       to be served by such facility or addition are located in this state; and (iii)
54       such retail customers located in this state number no more than 15,000.
55             (e)   "Party" means any landowner, electric utility, governmental board
56       or agency, or any other person allowed to intervene in any proceeding
57       under this act;.
58             (f)   "Person" means any individual, partnership, corporation or other
59       association of persons.
60             Sec. 2.   K.S.A. 66-1,159 is hereby amended to read as follows: 66-
61       1,159. No electric utility may begin site preparation for or construction
62       of an electric a nuclear generation facility or an addition to an electric a
63       nuclear generation facility or exercise the right of eminent domain to
64       acquire any land in connection with site preparation for or construction
65       of any such facility or addition thereto, without first acquiring a permit
66       from the commission. Whenever any such electric utility desires to obtain
67       such a permit, it the utility shall file an application with the commission,
68       setting forth therein that it the utility proposes to construct an electric a
69       nuclear generation facility or an addition to an electric a nuclear gener-
70       ation facility and specifying the description and the total number of acres
71       of land that such utility contemplates is needed in connection with the
72       construction, operation and maintenance of such facility or addition
73       thereto. Also, the electric utility shall file with the application documents
74       and plans which indicate the total planned utilization of a proposed lo-
75       cation for electric generation purposes and documents and plans for util-
76       ization of an alternative location or locations. Such documents and plans
77       with respect to alternative locations shall not be required for additions to
78       existing electric nuclear generation facilities. In addition, the electric util-
79       ity shall file with the application such documents pertaining to the con-
80       struction, operation and maintenance of the proposed electric generation
81       facility or addition to the electric generation facility and such other mat-
82       ters deemed relevant thereto as may be required by rules and regulations
83       of the commission. Thereupon, the commission shall fix a time for a public
84       hearing on such application, which shall be not less than 30 nor more
85       than 180 days from the date the application was filed and shall be con-
86       ducted in accordance with the provisions of the Kansas administrative
87       procedure act, to determine the necessity for the proposed electric gen-
88       eration facility or addition to an electric generation facility and the most
89       reasonable location and size of the proposed electric generation facility
90       or addition to an electric generation facility. The commission shall fix the
91       place for hearing, which may be in the county in which is located the
92       major portion of the land which has been or is proposed to be acquired
93       in connection with the construction, operation and maintenance of the
94       proposed electric generation facility or the addition to the electric gen-
95       eration facility or addition. Such hearing may be held in Topeka.
96             Sec. 3.   K.S.A. 66-1,160 is hereby amended to read as follows: 66-
97       1,160. The commission shall publish notice of the time, place and subject
98       matter of such hearing in newspapers having general circulation in the
99       counties in which is located any portion of the land which has been or is
100       proposed to be acquired in connection with the construction, operation
101       and maintenance of the proposed electric nuclear generation facility or
102       addition to an electric a nuclear generation facility once each week for
103       three consecutive weeks, the last publication to be not less than five days
104       before such hearing date. Written notice of such hearing and a copy of
105       the application also shall be served not less than twenty (20) 20 days prior
106       to the hearing date upon all landowners, as shown by the files, records
107       and indexes of the register of deeds of the county in which such land is
108       located, and the chief administrative officer, or any person designated by
109       such officer to receive such service, of the department of economic de-
110       velopment, state board commerce, department of agriculture, state water
111       resources board Kansas water office, department of health and environ-
112       ment, department of transportation, state geological survey, Kansas en-
113       ergy office and the and division of the budget of the department of ad-
114       ministration. In addition to the information contained in the published
115       notice, such written notice shall state that the electric utility has filed the
116       application and supporting documents as required by K.S.A. 66-1,159 and
117       amendments thereto, and that such application and supporting documents
118       are available in the office of the commission for examination and copying
119       by the person or board or agency desiring copies thereof.
120             Sec. 4.   K.S.A. 66-1,161 is hereby amended to read as follows: 66-
121       1,161. The commission shall appoint an attorney to represent the interests
122       of the landowners at the hearing and shall allow a reasonable attorney's
123       fee, which shall be taxed as part of the costs thereof. Landowners, at their
124       own expense, may retain counsel to represent their individual interests at
125       such hearing. The chief administrative officer, or any other person or
126       persons designated by such officer, of any governmental board or agency
127       affected by the siting of the proposed electric nuclear generation facility
128       or addition to an electric a nuclear generation facility shall be deemed to
129       meet the requirement for intervention contained in subsection (a)(2) of
130       K.S.A. 77-521 and amendments thereto. Any owner or lessee of land
131       whose estate or interest in such land would not be acquired by the electric
132       utility but would be affected in some other manner by the construction,
133       operation or maintenance of the electric generation facility or addition to
134       an electric generation facility may petition for intervention in accordance
135       with the provisions of K.S.A. 77-521 and amendments thereto.
136             Sec. 5.   K.S.A. 66-1,162 is hereby amended to read as follows: 66-
137       1,162. Except as otherwise provided in this act, the rules and regulations
138       adopted by the commission pursuant to K.S.A. 66-106 and amendments
139       thereto to govern the commission's proceedings shall be applicable to any
140       proceeding before the commission under this act. The electric utility shall
141       proceed with the introduction of evidence of the necessity for the pro-
142       posed electric nuclear generation facility or addition to an electric a nu-
143       clear generation facility and of the reasonableness of the proposed loca-
144       tion and size of the electric generation facility or addition to an electric
145       generation facility. The burden of proof on any such matter shall be upon
146       the electric utility and shall be established by a preponderance of the
147       evidence. All parties present or represented by counsel at the hearing
148       shall have an opportunity to be heard and the right to cross-examine any
149       witness appearing before the commission at the hearing. The commission
150       shall cause a transcript to be made of the hearing. All costs of any hearing
151       shall be taxed against the electric utility. The hearing and all parties' ar-
152       guments shall be completed within 90 days after the commencement
153       thereof. At any time after the commencement of the hearing, the electric
154       utility may withdraw its application for the permit required by K.S.A. 66-
155       1,159 and amendments thereto.
156             The commission shall make findings of fact and file such findings with
157       its decision to grant, grant conditioned by such findings or withhold the
158       permit applied for, except that whenever approval of applications are
159       pending with or must be obtained from any state regulatory authority
160       which relate to the operation of any such facility or addition to a facility,
161       the commission shall postpone its decision until proof of the approval or
162       disapproval of any such application is received. In any case where a state
163       regulatory authority cannot render final approval of any such application
164       until the facility or addition to a facility is in actual operation, the com-
165       mission shall accept as proof of approval or disapproval the state regula-
166       tory authority's certification of probable acceptability or unacceptability
167       of an application. Prior to making its determination with respect to the
168       most reasonable location and size of a proposed electric nuclear genera-
169       tion facility or addition to an electric a nuclear generation facility, the
170       commission shall make its determination of whether or not a necessity
171       exists for the electric generation capacity of a proposed electric generation
172       facility or addition to an electric generation a facility. In addition to any
173       other consideration deemed necessary in making such determination, the
174       commission shall consider and make determinations on the following fac-
175       tors: (1) Whether or not the electric generating capacity of the proposed
176       facility or addition to a facility meets or contributes to the meeting of the
177       electrical energy needs of the people of this state considering the probable
178       future statewide electrical energy needs thereof; and (2) whether or not
179       available electrical generating capacity exists within the state that is ca-
180       pable of being distributed economically, reliably, technically and environ-
181       mentally. Whenever the commission determines that a necessity exists for
182       electric generation capacity to be provided by a proposed electric nuclear
183       generation facility or addition to an electric a nuclear generation facility,
184       it the commission shall make its determinations with respect to the most
185       reasonable size and location of any such facility or addition to a facility.
186       In addition to any other consideration deemed necessary in making a
187       determination with respect to the size of a proposed facility or addition
188       to a facility, the commission shall consider the electric utility's total
189       planned utilization of a proposed location for electric generation purposes
190       as it relates to the necessity found by the commission for additional elec-
191       tric generating capacity in the state. In addition to any other consideration
192       deemed necessary in making a determination with respect to the most
193       reasonable location of a proposed facility or addition to a facility, the
194       commission shall consider the availability of natural resources necessary
195       in the operation of a proposed facility or addition to a facility as the same
196       relates to each alternative location submitted by the electric utility as
197       required by the provisions of K.S.A. 66-1,159 and amendments thereto.
198       The location of the existing nuclear generation facility shall be the most
199       reasonable location for any addition to such facility. Upon a determination
200       that a necessity exists for the proposed electric nuclear generation facility
201       or the addition to an electric a nuclear generation facility and that the
202       proposed location and size of such facility or addition thereto are the most
203       reasonable, the commission shall issue to the electric utility a permit to
204       construct such facility or addition thereto, except that the commission
205       may condition such permit with respect to the location and size of the
206       proposed electric nuclear generation facility or addition to an electric a
207       nuclear generation facility to provide for an alternate location or size, or
208       both, thereof, but in no case shall the commission provide for a size larger
209       than that applied for. Upon the issuance of such permit, no local ordi-
210       nance, resolution or regulation shall prohibit the construction of the elec-
211       tric nuclear generation facility or addition to an electric a nuclear gen-
212       eration facility, and the electric utility may proceed with such facility or
213       addition thereto notwithstanding any requirement to obtain any building
214       permit under any local zoning ordinance, resolution or regulation.
215             Sec. 6.   K.S.A. 66-1,169a is hereby amended to read as follows: 66-
216       1,169a. In order to more effectively administer the provisions of the Kan-
217       sas electric nuclear generation facility siting act with respect to determin-
218       ing whether or not a necessity exists for a proposed electric nuclear
219       generation facility or addition to an electric a nuclear generation facility,
220       the commission shall compile and maintain a comprehensive statewide
221       electric generation capacity forecast. In compiling and maintaining said
222       forecast, the commission may hold such hearings deemed necessary. The
223       proceedings of any such hearing shall be governed by the rules and reg-
224       ulations adopted by the commission pursuant to K.S.A. 66-106 and
225       amendments thereto. For the purposes of this section, every municipally
226       owned or operated electric utility and every electric utility operating
227       wholly and solely within the legal boundaries of any municipality and
228       within three (3) miles thereof shall furnish to the commission such infor-
229       mation as to electric generation capacity as the commission may require.
230             Sec. 7.   K.S.A. 1998 Supp. 66-1,169b is hereby amended to read as
231       follows: 66-1,169b. (a) The provisions of the Kansas electric generation
232       facility siting act shall not apply to: (1) Unit number 3 of the Jeffrey
233       Energy Center; or (2) electric generation facilities that have a capacity of
234       100 megawatts or less and convert wind, solar, biomass, landfill gas or
235       any other renewable source of energy.
236             (b)   With regard to a facility proposed to be located outside this state,
237       K.S.A. 66-1,160 and 66-1,161, and amendments thereto, shall not apply
238       and, for purposes of determining the most reasonable location of a pro-
239       posed facility or addition to a facility pursuant to K.S.A. 66-1,162, and
240       amendments thereto, the commission shall consider only the effects on
241       system reliability and economic efficiency.
242             Sec. 8.   K.S.A. 66-1,169c is hereby amended to read as follows: 66-
243       1,169c. This act and the act of which it is amendatory shall be known and
244       cited as the "Kansas electric nuclear generation facility siting act."
245             New Sec. 9.   Any electric generation facility, or addition thereto, for
246       which a permit application was pending under the electric generation
247       facility siting act as it existed immediately before the effective date of this
248       act shall be required to have such permit only if the facility is required
249       to have a permit pursuant to this act.  
250       Sec. 10.   K.S.A. 66-1,159, 66-1,160, 66-1,161, 66-1,162, 66-1,169a
251       and 66-1,169c and K.S.A. 1998 Supp. 66-1,158 and 66-1,169b are hereby
252       repealed.
253         Sec. 11.   This act shall take effect and be in force from and after its
254       publication in the Kansas register.