Sebelius signs incentives for renewable energy production
Energy bills among 9 signed today; two vetoed

To encourage production of renewable energy in Kansas, Governor Kathleen Sebelius has approved tax incentives for biofuels production and projects that produce electricity from heat that would otherwise be wasted.

“We have a real opportunity to lead the nation in renewable energy research and production.  Our biofuels industry is growing and we’re making advances in finding new ways to generate electricity that don’t use fossil fuels.  These tax incentives will help continue that progress,” Sebelius said.

The bill, HB 2038, provides several income tax incentives for qualified investments in biofuel storage and blending equipment for tax years 2007 through 2011. Income tax deductions are also offered and are based on accelerated depreciation for storage and blending equipment beginning in tax year 2007.

This bill also provides various tax incentives for renewable electric cogeneration facilities and certain waste heat utilization systems. The Kansas Development Finance Authority is also authorized to issue tax-exempt revenue bonds to finance construction of cogeneration facilities and waste heat utilization systems at electric generation facilities in the state.

Additionally, this legislation creates an income tax credit for tax years 2007 through 2011 for investments in the construction of cogeneration facilities and in real and tangible personal property used in the facility, as well as providing for an income tax deduction based on accelerated depreciation of a cogeneration facility.    

Finally, this bill provides a property tax exemption for new nuclear generation facilities within three miles of an existing nuclear facility, and exempts such facilities from various siting requirements. The property tax exemptions would apply only to projects begun after December 31, 2006.

This bill was one of 9 signed today by the Governor. Two bills were also vetoed. Signed bills go into effect after their publication in the statute book, unless otherwise noted.  Governor Sebelius has signed 120 bills during the 2007 Legislative Session and vetoed three.

Financing energy conservation efforts at federal agencies in Kansas

HB 2169 adds federal agencies to the list of governmental entities with which the Kansas Development Finance Authority (KDFA) could enter into financing agreements for energy conservation measures. KDFA can issue revenue bonds to pay energy conservation measures for, or on behalf of, federal agencies for facilities located in Kansas. This bill also removes the $5,000,000 cap for energy conservation improvements for state facilities. The bill will exempt negotiations between KDFA and its contractors from the Open Records Act, as currently they are not subject to the Open Meetings Act.  Finally, KDFA will be authorized to assist state agencies, political subdivisions, and federal entities with engineering studies and energy conservation measures.

Administering municipal utilities outside of the municipality

HB 2032 exempts municipal natural gas and electric utilities from regulation by the Kansas Corporation Commission for services provided more than three miles from the municipality’s boundary if the number of customers served in the outlying area constitutes 40 percent or less of the utility’s total customers, and rates and charges are no greater than those inside the municipality. The terms and conditions of service must also be the same for those outside of the municipality as they are for customers inside the municipality. The bill provides that outlying customers are provided with at least 10 days notice before any meeting at which changes to rates and charges will be considered. Contents of the notice, including a statement of the right to petition, are specified in the bill. The bill also creates a procedure by which customers in an outlying area can protest a change in rates, charges, or terms and conditions of service.

Adjusting utilities’ value for rate making purposes

HB 2033 requires the Kansas Corporation Commission (KCC) to include in the utility’s value for rate making purposes, certain property that has not been in service. Under this bill, the KCC may, on its own initiative or as part of a utility rate proceeding, review whether a public utility’s expenditures for property were efficiently and prudently incurred. The bill also repeals the 100 megawatt limit on renewable generation facilities dedicated to commercial service for ratemaking purposes. Additionally, the bill allows the costs of construction work to be included in the utility’s value for ratemaking purposes, if the facility will generate power from renewable sources.

Requirements for the drilling of oil and gas wells

Sen. Sub. for HB 2485 allows the Kansas Corporation Commission to adopt rules and regulations to fix, charge and collect a fee for an application of intent for drilling an oil or gas well. The maximum fee allowed by the bill is $300. Additionally, this bill clarifies that the KCC must provide information to the Secretary of the Kansas Department of Health and Environment and to county clerks regarding the intent to drill. The bill deletes the annual cap for the voluntary assessment of each interest owner. The bill allows those individuals who request less than a full refund of all assessments to serve on the Kansas Oil and Gas Resources Board.  Finally, the bill authorizes the board to permit or require an entity other than the first purchaser to deduct the assessment if the entity is the operator or if the entity distributes revenue to interest owners.

Authorizing state support for tire recycling

SB 146 allows grants from the Waste Tire Management Fund to be made to public or private entities for up to 50 percent of the cost of start-up or to enhance projects to recycle tires or recover energy through waste tire combustion. This bill also allows grants from the Waste Tire Management Fund to be made to local units of government to pay up to 50 percent of the costs to purchase tire derived products made from recycled waste tires. This latter grant authority would expire on June 30, 2010. This bill also repeals statutory language which currently restricts the amount of money the Kansas Department of Health and Environment may spend on grants from the Waste Tire Management Fund.

Changes to Board of Nursing membership guidelines

SB 104 deletes the position of a licensed mental health technician from the Board of Nursing and replaces it with a representative of the general public.  It also stipulates that at least one of the consumer members on the board must not have been involved in providing health care. This bill also prohibits board members from receiving compensation if the member receives similar compensation from another governmental or private entity.

Creating the State Library of Kansas Board

SB 67 creates the State Library of Kansas Board, abolishing the State Library Advisory Commission and the Kansas Library Network Board. The State Library of Kansas Board will consist of seven professional librarians, a trustee of a public library, two representatives of the general public and one qualified member of the Kansas Federation of Women’s Clubs.  These 11 members will be appointed by the Governor.  Additionally, the board will include the Executive Officer of the Board of Regents, the Commissioner of Education, and the State Librarian as ex officio members. The board will promote cooperation with the Kansas Board of Regents to ensure the inclusion of libraries on the KAN-ED network and continue the availability of statewide library reference resources.

Creating the Fort Scott/Bourbon County Riverfront Authority Act

SB 321 creates the Fort Scott/Bourbon County Riverfront Authority Act, which will consist of a six-member governing and administrative Riverfront Board whose members are Kansas residents, non-elected officials, serving a three-year term. Three members will be appointed by the Mayor of Fort Scott, with approval of the Fort Scott City Council, and three will be appointed by the Bourbon County Commission. The purpose of the authority is to promote the general welfare, and encourage capital investment by fostering the creation of recreational, retail, entertainment, economic development and housing within the riverfront of the metropolitan area of the City of Fort Scott. The authority will engage in planning, designing, acquiring, constructing, owning, operating and maintaining for public use, a riverfront system.

Veto message for HB 2528, a bill regarding local authority on gun ordinances  

“I have repeatedly demonstrated my support for gun ownership because it’s an important part of our state’s heritage and way of life.  I myself am one of thousands of Kansans who enjoys hunting, and I believe all law-abiding Kansans have the right to own a weapon for their protection and the protection of their families.  That’s why I’ve supported common-sense improvements to Kansas gun laws, such as allowing retired law enforcement officers to carry concealed weapons.

I also have supported measures to make our gun laws more uniform so gun owners don’t inadvertently violate an ordinance when traveling from one community to another.  That’s what this bill purports to do, however it actually sets up greater inconsistencies and creates new threats to public safety.

For example, concealed weapons currently may be banned at professional and school sporting events, however this bill would prevent communities from banning them at similar such events at city or county sports fields.  If it is in the interest of public safety to not have weapons at school-sponsored sporting events, it makes little sense to then prohibit local officials from banning guns at other sporting events, as this bill would propose.

Local officials have the responsibility to keep their residents safe, and should have the authority to make reasonable decisions.  Working with law enforcement officials and representatives from local communities, Legislators had agreed on a compromise that would provide a balance between the interests of gun owners in consistent laws, and the interests in keeping Kansans safe, however this good-faith agreement was removed by an amendment on the Senate floor.

Therefore, since this bill diminishes the critical public safety authority of local officials, and creates further inconsistencies in the gun laws of Kansas, pursuant to Article 2, Section 14 of the Constitution of the State of Kansas, I veto HB 2528.  If the Legislature decides to take further action on this issue, I would strongly encourage them to pass the compromise language adopted by the Senate Committee Federal and State Affairs.” --- Governor Kathleen Sebelius, April 13, 2007

Veto message for HB 2202, a bill regarding alcoholic liquors and farm wineries

“My office has determined that HB 2202 contains a significant drafting error which includes different language than the language agreed upon by the conference committee. Therefore, pursuant to Article 2, Section 14 of the Constitution of the State of Kansas, I veto House Bill 2202.  I support the intent of the bill and encourage the Legislature to pass a corrected version this year so I can sign it into law.” --- Governor Kathleen Sebelius, April 13, 2007

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