Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 639 of the Regular Session
 State of Arkansas              As Engrossed:       S1/26/21 S3/9/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                               SENATE BILL 65
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 By: Senator B. Ballinger
 By: Representative Beck
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                                   For An Act To Be Entitled
                AN ACT TO AMEND ARKANSAS LAW REGARDING STATE EMISSION
                PLANS FOR FOSSIL-FUEL-FIRED ELECTRIC GENERATING
                UNITS; AND FOR OTHER PURPOSES.
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                                               Subtitle
                         TO AMEND ARKANSAS LAW REGARDING STATE
                         EMISSION PLANS FOR FOSSIL-FUEL-FIRED
                         ELECTRIC GENERATING UNITS.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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        SECTION 1.         Arkansas Code  8-3-201(b)(2), concerning the purpose of
 the subchapter related to the review of the state emission plans, is amended
 to read as follows:
                (2)      The state plan is reviewed through a transparent public
 process that assesses the full impact of the state plan on rates,
 reliability, and employment, and manufacturing greenhouse gas leakage.
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        SECTION 2.         Arkansas Code  8-3-205 is amended to read as follows:
        8-3-205.      Assessing effects of state plan.
        (a)    Before completing seeking public comment on a proposed state plan
 for regulating carbon dioxide emissions from covered electric generating
 units or any permit amendment, rule amendment, or administrative order
 necessary to implement a state plan for regulating carbon dioxide emissions
 from covered electric generating units, the Division of Environmental Quality
 shall prepare a report that takes into account the factors specified in  8-
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     As Engrossed:       S1/26/21 S3/9/21                                              SB65
 4-312 and the Clean Air Act, 42 U.S.C.  7401 et seq., as applicable.
      (b)(1)     In addition to the report specified in subsection (a) of this
 section, the division shall coordinate with the Arkansas Public Service
 Commission in the preparation of a report both initial and annual reports
 that assesses assess the effects of the state plan on the electric power
 sector, including without limitation:
                       (A)   The ability of the state to provide affordable
 electricity through diversified sources of electricity generation;
                       (B)   The type and amount of electric generating capacity
 within the state that is likely to withdraw from the state or switch to
 another fuel;
                       (C)   Stranded investment in electric generating and
 transmission capacity and other assets and infrastructure;
                       (D)   Potential risks to electric reliability within the
 state, including without limitation resource adequacy risks, transmission
 constraints, and natural gas supply and transmission adequacy; and
                       (E)(i)     The amount by which retail electricity and any
 replacement fuel prices within the state are forecast to increase.
                                (ii)   A rate impact assessment shall consider nonfuel
 costs, including generation, transmission, distribution, surcharges for
 renewable energy and energy efficiency, capital investment, upgrades to meet
 environmental requirements, utility profits, financing costs for new
 investments, unappreciated capital assets retired prematurely, and other
 nonfuel costs and surcharges, and the amount of funds contributed from all
 in-state taxpayers to local, state, and federal subsidies, grants, and
 credits to fund in-state electric generation sources, electric storage, and
 energy efficiency.
               (2)    The division shall further coordinate with the Arkansas
 Economic Development Commission in the preparation of a report both initial
 and annual reports that assesses assess the effects of the state plan on the
 electricity consumers within the state, including without limitation:
                       (A)   Disproportionate impacts of electricity and other
 replacement energy price increases on middle-income and lower-income
 households;
                       (B)   Employment within the state, including without
 limitation direct and indirect employment effects and jobs potentially lost
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     As Engrossed:    S1/26/21 S3/9/21                                           SB65
 within affected sectors of the state's economy;
                    (C)   Economic development within the state, including
 without limitation effects on manufacturing, commercial, and other sectors of
 the state's economy;
                    (D)   The competitive position of the state in relation to
 neighboring states and other economic competitors; and
                    (E)   State and local governments, including without
 limitation potential impacts resulting from changes in tax revenues and
 higher government outlays for electric service.
      (c)   The initial reports required by this section shall be included
 with any petition filed by the division to initiate rulemaking for rules that
 in the public record for any permit amendment, rule amendment, or
 administrative order proposed to implement a state plan for regulating carbon
 dioxide emissions from covered electric generating units.
      (d)   Beginning one (1) year after the initial compliance date specified
 in the state plan and each year thereafter, the division, in coordination
 with the Arkansas Public Service Commission and the Arkansas Economic
 Development Commission, shall submit the annual reports required under
 subsection (b) of this section to the Legislative Council.
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      SECTION 3.    Arkansas Code  8-3-207(a), concerning procedures for
 approval of the state plan, is amended to read as follows:
      (a)   Before After the conclusion of the public comment period under 
 8-4-317 and before transmitting a state plan to the Governor for submission
 of the state plan to the United States Environmental Protection Agency, the
 Division of Environmental Quality shall transmit to the cochairs of the
 Legislative Council a copy of the state plan and the accompanying report
 reports developed under  8-3-205.
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      SECTION 4.    Arkansas Code  8-3-207(d), concerning procedures for
 approval of the state plan, is amended to read as follows:
      (d)   Notwithstanding the provisions of this subchapter, in the absence
 of legislative approval under subsection (b) of this section, the Governor
 may direct the submission of a state plan to the United States Environmental
 Protection Agency if, in his or her judgment:
            (1)    Sufficient time has passed for the Legislative Council to
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     As Engrossed:     S1/26/21 S3/9/21                                            SB65
 consider a state plan submitted by the division for legislative approval;
             (2)    Further delay would result in the failure to submit a state
 plan by the relevant deadline for submission; and
             (3)    Failure to submit a state plan would likely result in the
 imposition of a federal implementation plan.
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       SECTION 5.    Arkansas Code  8-3-208 is amended to read as follows:
       8-3-208.     Feasibility study Rate and reliability safety valve.
       (a)   If a state plan approved under this subchapter would result in a
 significant increase in the total electric or natural gas bill annually for
 any customer class as determined by the Arkansas Public Service Commission,
 the Division of Environmental Quality shall prepare a feasibility study to
 determine whether:
             (1)    An alternative approach is consistent with the Clean Air
 Act, 42 U.S.C.  7401 et seq.; or
             (2)    The pursuit of implementing an alternative approach is
 likely to result in the imposition of a federal plan initiate development of
 a revised state plan that reduces the financial impacts to any customer class
 as determined under  8-3-205 in accordance with the procedures outlined in 
 8-4-317.
       (b)   The state plan previously approved by the United States
 Environmental Protection Agency shall remain in effect while the revised
 state plan required under subsection (a) of this section is being developed,
 approved by the Legislative Council, and submitted by the Governor to the
 United States Environmental Protection Agency and until the revised state
 plan is approved by the United States Environmental Protection Agency.
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       SECTION 6.    Arkansas Code  8-3-209 is repealed.
       8-3-209.    Waiver of review and approval procedures for emissions plans.
       (a)   The Division of Environmental Quality may seek a waiver of review
 and approval procedures for emissions plans from the Legislative Council if
 the division determines that final federal emission guidelines do not require
 any one (1) or more of the following:
             (1)    Shifting generation from electric generating units powered
 by one fuel type to another fuel type;
             (2)    Closing any fossil fuel-fired electric generating unit; or
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     As Engrossed:       S1/26/21 S3/9/21                                           SB65
               (3)    Imposing a statewide greenhouse gas goal or other statewide
 greenhouse gas emissions limitation.
         (b)   A request to the Legislative Council under subsection (a) of this
 section shall include an explanation of how the final emission guidelines for
 the regulation of carbon dioxide emissions from existing fossil fuel-fired
 electric generating units under  111(d) of the Clean Air Act, 42 U.S.C. 
 7411, do not require any of the factors in subsection (a) of this section.
         (c)   The division shall not seek a waiver under subsection (a) of this
 section until the United States Environmental Protection Agency promulgates
 emission guidelines for the regulation of carbon dioxide emissions from
 existing fossil fuel-fired electric generating units under  111(d) of the
 Clean Air Act, 42 U.S.C.  7411(d).
         (d)   An affirmative majority vote of the Legislative Council is
 required to grant a waiver of review and approval procedures for a state
 plan.
         (e)   If the Legislative Council grants a waiver under this section,
 then all requirements in  8-3-203 and 8-3-205  8-3-207 are waived.
         (f)   If the Legislative Council grants a waiver under this section, the
 division may submit a state plan to the United States Environmental
 Protection Agency.
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                                        /s/B. Ballinger
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                                    APPROVED: 4/12/21
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Statutes affected: 
Old version SB65 Original - 1-7-2021 08:37 AM: 8-3-205(a), 8-3-207(a), 8-3-207(d)
Old version SB65 V2 - 1-26-2021 10:03 AM: 8-3-205(a), 8-3-207(a), 8-3-207(d)
Old version SB65 V3 - 3-9-2021 01:27 PM: 8-3-201(b), 8-3-205, 03-09-2021, 8-3-207(a), 8-3-207(d)
SB 65: 8-3-201(b), 8-3-205, 03-09-2021, 8-3-207(a), 8-3-207(d)
Act 639: 8-3-201(b), 8-3-205, 03-09-2021, 8-3-207(a), 8-3-207(d)
Old version of SB 65 - 01-26-21: 8-3-205(a), 8-3-207(a), 8-3-207(d)
Old version of SB 65 - 01-07-21: 8-3-205(a), 8-3-207(a), 8-3-207(d)