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Minutes for SB323 - Committee on Utilities
Short Title
Establishing requirements for instruments that convey a wind or solar lease or easement and requiring that certain disclosures be provided to landowners.
Minutes Content for Wed, Jan 26, 2022
Nick Myers, Office of the Revisor of Statutes, gave an overview of the bill. SB323 would require, prior to the construction of any wind or solar generation facility, the written instrument conveying any lease or easement for the construction of any such facility meet certain requirements.
Following the overview, Mr. Myers answered questions from committee members.
The Chairman called for Proponent Testimony on the bill.
Proponents Oral
Bill Scopp, private citizen, spoke as a proponent of the bill, stating he was a rural landowner with 37 years of experience in equipment leasing and also, but to a lesser degree, real property leasing. He discussed having reviewed a 57-page industrial wind developer/tenant proposed land lease from Linn County. He stated the lease places virtually unlimited risk on the landowners, and gives indemnity to the wind company from all liability, and the scope of the lease allows the developer virtually unlimited easements beyond a footprint for the base energy device (wind turbine). He testified it is imperative the Committee take action to, at a minimum, provide a cautionary notice and encourage any person or entity considering entering into an industrial energy development land lease to seek qualified counsel or advice prior to signing a lease. (Attachment 1)
Beverly Kavouras, private citizen, spoke as a proponent of the bill. She stated SB323 removes some of the very aggressive tactics industrial wind companies use to take advantage of uninformed land owners, such as leasing land, making deals with local officials and being ready to start building before any of the non-participating land owners and citizens of the county are aware of what is happening. She testified hearings and certain leasing requirements should be met before any land leasing or building is allowed to commence, to protect rural landowners. (Attachment 2)
Following the proponent testimony, the Chairman opened for a period of questions and answers.
Written proponent testimony was provided by the following:
Shirley Estrada, private citizen. (Attachment 3)
Roger McEowen, owner, McEowen, P.L.C. and Professor of Agricultural Law and Taxation, Washburn University School of Law (Attachment 4) (Attachment 5)
Kathy Nicholson, Private Citizen (Attachment 6)
The Chairman called for Opponent Testimony on the bill.
Opponents, Oral
Josh Svaty, speaking on behalf of the Kansas Power Alliance, provided opponent testimony. The Kansas Power Alliance is an association of energy developers, manufacturers, commercial and industrial customers, engineering firms and financial institutions and investors. He said SB323 sets out a number of ways in which government interferes with the private contract process, and the term, "prior to construction" in SB323 would render thousand of leases null and void because construction has not commenced. He touched on nondisclosure agreements, and said case law already covers the lease language. (Attachment 7)
Following his testimony, there was a period of questions and answers.
Written opponent testimony was provided by the following:
Rorik F. Peterson, Director of Development, EDP Renewables North America (Attachment 8)
Gina Mace, Public Policy and Institutional Affairs Mangaer - North Central Region, Enel North America (Attachment 9)
Angeliina Lawson, Lobbyist, Land on the Range (Attachment 10)
Mark Walter, Director of Legislative & Regulatory Affairs, Savion Renewable Energy Company (Attachment 11)
Zack Pistora, Kansas Sierra Club (Attachment 12)
Kent Eckles, Kansas Chamber (Attachment 13)
Following opponent testimony the Chairman called for questions and answers.
Seeing no more questions, the Chairman closed the hearing and adjourned the meeting at 2:30 pm.
