LB1370 LB1370
2024 2024
LEGISLATIVE BILL 1370
Approved by the Governor April 15, 2024
Introduced by Bostelman, 23; Albrecht, 17; Brewer, 43; Clements, 2; DeKay, 40;
Dorn, 30; Dover, 19; Erdman, 47; Halloran, 33; Hansen, 16;
Hardin, 48; Holdcroft, 36; Hughes, 24; Ibach, 44; Jacobson, 42;
Kauth, 31; Linehan, 39; Lippincott, 34; Lowe, 37; McDonnell, 5;
Meyer, 41; Murman, 38; Sanders, 45; Slama, 1.
A BILL FOR AN ACT relating to electricity; to amend sections 70-624.04, 70-637,
and 70-1012, Reissue Revised Statutes of Nebraska, sections 70-1014.02 and
84-1411, Revised Statutes Cumulative Supplement, 2022, and section
70-1001.01, Revised Statutes Supplement, 2023; to provide requirements relating to the closing or decommissioning of a dispatchable electric generation facility; to change provisions relating to directors of public power and irrigation districts; to change provisions relating to contracts entered into by public power districts; to require certain actions by a developer, owner, or operator of a wind energy conversion system; to provide certain requirements relating to the construction or acquisition of an electric generation facility or transmission lines; to exempt certain entities from certain meeting requirements; to define terms; to harmonize provisions; to provide operative dates; to repeal the original sections; to outright repeal sections 70-1029, 70-1030, 70-1031, and
70-1033, Reissue Revised Statutes of Nebraska, and section 70-1032,
Revised Statutes Cumulative Supplement, 2022; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. (1) For purposes of this section, dispatchable electric generation facility means a facility that, under normal operating conditions,
can increase or decrease its output on demand to provide electricity onto the electric power transmission grid on an ongoing basis.
(2)(a) If a public power district, a public power and irrigation district,
an electric membership association, an electric cooperative company, a municipality having a generation and distribution system, or a registered group of municipalities decides that a dispatchable electric generation facility with
a generation capacity in excess of one hundred megawatts owned by any such entity should be closed or decommissioned, such entity shall provide written notice to the Nebraska Power Review Board prior to a final decision to close or
decommission such facility. Such written notice shall include recommendations on necessary transition activities to avoid economic harm to workers at such facility or to an affected community. Transition activities include, but are not necessarily limited to:
(i) Educating workers regarding the availability of various assistance programs, including what options are available to maintain employment with such entity;
(ii) Explaining what severance pay will be available to workers;
(iii) Services for workers including education and job training, career counseling, skills-matching, and financial planning assistance; and
(iv) Promoting economic development opportunities in the affected community, including the creation of comparable jobs.
(b) The board, in its discretion, may set a time and place for hearing on
the matter and provide at least twenty days' prior notice to such entity. The hearing shall be held within sixty days after such notice unless such entity requests in writing that the hearing not be scheduled until a later time. Any such hearing shall be closed to the public due to the proprietary and commercial information discussed. If the board determines that no hearing is
necessary, the board shall provide written notice of such determination to such entity within thirty days after receipt of the written notice described in
subdivision (2)(a) of this section.
(3) Within sixty days after the hearing or the determination that no
hearing is necessary as described in subsection (2) of this section, the board shall make recommendations in writing on the basis of the record before the board as to whether closing or decommissioning the dispatchable electric generation facility is in the best interests of the entity deciding to close or
decommission the dispatchable electric generation facility and its customers.
Such recommendations shall be advisory only. Such entity shall consider the board's recommendations before making its final decision regarding the closing or decommissioning of the electric generation facility.
(4) The notices, the scheduling decisions concerning the hearing and purpose of the hearing, the record of the hearing, the board's recommendations,
and any response by the entity deciding to close or decommission the dispatchable electric generation facility shall all be treated as confidential records that are not subject to public disclosure pursuant to sections 84-712
to 84-712.09 until such time as such entity publicly announces any decision to
close or decommission the dispatchable electric generation facility. Nothing in
this subsection shall be construed to require public disclosure of any information that may be withheld as provided in section 70-673 or 84-712.05.
(5) This section shall not apply to any decision by a public power
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district, a public power and irrigation district, an electric membership association, an electric cooperative company, a municipality having a generation and distribution system, or a registered group of municipalities to
close or decommission a dispatchable electric generation facility made prior to
the effective date of this act.
Sec. 2. Section 70-624.04, Reissue Revised Statutes of Nebraska, is amended to read:
70-624.04 (1) Directors and employees of public power districts, public power and irrigation districts, and public utility companies shall be permitted to hold other elective office as provided in section 32-604. No contracts of
any such public power district, public power and irrigation district, or public utility company shall be void or voidable by reason of such service by its directors or employees.
(2) A director of a public power and irrigation district may have an
interest in a residential lease agreement or a water service agreement with such district. Such director may participate in any discussion or vote on such agreements. No agreement of such public power and irrigation district shall be
void or voidable by reason of such interest by such director.
Sec. 3. Section 70-637, Reissue Revised Statutes of Nebraska, is amended to read:
70-637 (1) A district shall cause estimates of the costs to be made by
some competent engineer or engineers before the district enters into any contract for:
(a) The construction, reconstruction, remodeling, building, alteration,
maintenance, repair, extension, or improvement, for the use of the district, of any:
(i) Power plant or system;
(ii) Hydrogen production, storage, or distribution system;
(iii) Ethanol production or distribution system;
(iv) Irrigation works; or
(v) Part or section of a system or works described in subdivisions (i)
through (iv) of this subdivision; or
(b) The purchase of any materials, machinery, or apparatus to be used in
the projects described in subdivision (1)(a) of this section.
(2) If the estimated cost exceeds the sum of seven two hundred fifty thousand dollars, for those districts with a gross revenue of less than five hundred million dollars, or one million five hundred thousand dollars, for those districts with a gross revenue of five hundred million dollars or more,
no such contract shall be entered into without advertising for sealed bids.
(3) Notwithstanding the provisions of subsection (2) of this section and sections 70-638 and 70-639, the board of directors of the district may negotiate directly with sheltered workshops pursuant to section 48-1503.
(4)(a) The provisions of subsection (2) of this section and sections
70-638 and 70-639 relating to sealed bids shall not apply to contracts entered into by a district in the exercise of its rights and powers relating to (i)
radioactive material or the energy therefrom, (ii) any technologically complex or unique equipment, (iii) equipment or supplemental labor procurement from an
electric utility or from or through an electric utility alliance, or (iv) any maintenance or repair, if the requirements of subdivisions (b) and (c) of this subsection are met.
(b) A contract described in subdivision (a) of this subsection need not comply with subsection (2) of this section or section 70-638 or 70-639 if:
(i) The engineer or engineers certify that, by reason of the nature of the subject matter of the contract, compliance with subsection (2) of this section would be impractical or not in the public interest;
(ii) The engineer's certification is approved by a two-thirds vote of the board; and
(iii) The district advertises notice of its intention to enter into such contract, the general nature of the proposed work, and the name of the person to be contacted for additional information by anyone interested in contracting for such work.
(c) Any contract for which the board has approved an engineer's certificate described in subdivision (b) of this subsection shall be advertised in three issues not less than seven days between issues in one or more newspapers of general circulation in the district and in such additional newspapers or trade or technical periodicals as may be selected by the board in
order to give proper notice of its intention to enter into such contract, and any such contract shall not be entered into prior to twenty days after the last advertisement.
(5) The provisions of subsection (2) of this section and sections 70-638
and 70-639 shall not apply to contracts in excess of seven two hundred fifty thousand dollars, for those districts with a gross revenue of less than five hundred million dollars, or one million five hundred thousand dollars, for those districts with a gross revenue of five hundred million dollars or more,
entered into for the purchase of any materials, machinery, or apparatus to be used in projects described in subdivision (1)(a) of this section if, after advertising for sealed bids:
(a) No responsive bids are received; or
(b) The board of directors of such district determines that all bids received are in excess of the fair market value of the subject matter of such bids.
(6) Notwithstanding any other provision of subsection (2) of this section or sections 70-638 and 70-639, a district may, without advertising or sealed
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bidding, purchase replacement parts or services relating to such replacement parts for any generating unit, transformer, or other transmission and distribution equipment from the original manufacturer of such equipment upon certification by an engineer or engineers that such manufacturer is the only available source of supply for such replacement parts or services and that such purchase is in compliance with standards established by the board. A written statement containing such certification and a description of the resulting purchase of replacement parts or services from the original manufacturer shall be submitted to the board by the engineer or engineers certifying the purchase for the board's approval. After such certification, but not necessarily before the board review, notice of any such purchase shall be published once a week for at least three consecutive weeks in one or more newspapers of general circulation in the district and published in such additional newspapers or
trade or technical periodicals as may be selected by the board in order to give proper notice of such purchase.
(7) Notwithstanding any other provision of subsection (2) of this section or sections 70-638 and 70-639, a district may, without advertising or sealed bidding, purchase used equipment and materials on a negotiated basis upon certification by an engineer that such equipment is or such materials are in
compliance with standards established by the board. A written statement containing such certification shall be submitted to the board by the engineer for the board's approval.
Sec. 4. (1) For purposes of this section:
(a) FAA approval means approval by the Federal Aviation Administration that meets the requirements set forth in Chapter 10 of the Federal Aviation Administration's 2020 Advisory Circular AC 70/7460-1M, Obstruction Marking and Lighting;
(b) Light-mitigating technology system means aircraft detection lighting or any other comparable system capable of reducing the impact of facility obstruction lighting while maintaining conspicuity sufficient to assist aircraft in identifying and avoiding collision with a wind energy conversion system;
(c) Repower means a substantial physical modification of at least seventy-
five percent of the wind turbines in a wind energy conversion system that results in an increase of ten percent or more in nameplate capacity; and
(d) Wind energy conversion system means an electric generation facility consisting of ten or more wind turbines that are two hundred fifty feet or more in height and any accessory or appurtenant structures and buildings including substations, meteorological towers, electrical infrastructure, and transmission lines.
(2) Beginning July 1, 2025:
(a)(i) A developer, owner, or operator of a wind energy conversion system shall make application to the Federal Aviation Administration for FAA approval to install and operate a light-mitigating technology system on such wind energy conversion system as follows:
(A) Before a wind energy conversion system commences commercial operation in this state, if such system did not exist prior to July 1, 2025;
(B) Within thirty days after a wind energy conversion system existing prior to July 1, 2025, commences a repower; or
(C) If on July 1, 2025, such developer, owner, or operator has five years or less remaining on a power purchase agreement with an electric supplier for a wind energy conversion system, within thirty days after the existing power purchase agreement is extended or renewed or a new power purchase agreement is
executed; and
(ii) Within twenty-four months after receiving FAA approval, the developer, owner, or operator of the wind energy conversion system shall install a light-mitigating technology system on wind turbines covered under such FAA approval; and
(b) Any developer, owner, or operator of a wind energy conversion system existing prior to July 1, 2025, that does not commence a repower shall on or before July 1, 2035, install a light-mitigating technology system on the wind turbines in such wind energy conversion system that meets Federal Aviation Administration requirements.
(3) Any application made pursuant to subsection (2) of this section shall be submitted in good faith and reasonably intended to obtain FAA approval. If FAA approval is not granted after application is made pursuant to such subsection, the wind energy conversion system may commence or continue, as applicable, commercial operation without a light-mitigating technology system.
(4) Any costs associated with the installation, implementation, operation,
and maintenance of a light-mitigating technology system shall be the responsibility of the developer, owner, or operator of the wind energy conversion system.
(5) Nothing in this section shall be construed to require mitigation of
light pollution to be carried out in a manner that conflicts with federal law or requirements, including requirements of the Federal Aviation Administration or the United States Department of Defense.
(6) Nothing in this section shall be construed to require any new or
separate approval from any state or local governmental agency.
Sec. 5. Section 70-1001.01, Revised Statutes Supplement, 2023, is amended to read:
70-1001.01 For purposes of sections 70-1001 to 70-1028, unless the context otherwise requires:
(1) Board means the Nebraska Power Review Board;
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(2) Electric supplier or supplier of electricity means any legal entity supplying, producing, or distributing electricity within the state for sale at
wholesale or retail;
(3) Military installation means a military base other than a National Guard base where fixed-wing aircraft or strategic weapon assets are on a permanent or temporary basis assigned, stored, operated from, or otherwise located;
(4) (3) Private electric supplier means an electric supplier producing electricity from a privately developed renewable energy generation facility that is not a public power district, a public power and irrigation district, a municipality, a registered group of municipalities, an electric cooperative, an electric membership association, any other governmental entity, or any combination thereof;
(5) (4) Privately developed renewable energy generation facility means a facility that (a) generates electricity using solar, wind, geothermal, biomass,
landfill gas, or biogas, including all electrically connected equipment used to
produce, collect, and store the facility output up to and including the transformer that steps up the voltage to sixty thousand volts or greater, and including supporting structures, buildings, and roads, unless otherwise agreed to in a joint transmission development agreement, (b) is developed,
constructed, and owned, in whole or in part, by one or more private electric suppliers, and (c) is not wholly owned by a public power district, a public power and irrigation district, a municipality, a registered group of
municipalities, an electric cooperative, an electric membership association,
any other governmental entity, or any combination thereof;
(6) (5) Regional transmission organization means an entity independent from those entities generating or marketing electricity at wholesale or retail,
which has operational control over the electric transmission lines in a designated geographic area in order to reduce constraints in the flow of
electricity and ensure that all power suppliers have open access to
transmission lines for the transmission of electricity;
(7) (6) Reliable or reliability means the abilit