Arkansas 2025 Regular Session

Arkansas House Bill HB1409 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
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33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 HOUSE BILL 1409 3
66 4
77 By: Representative Long 5
88 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO AMEND THE LAW REGARDING ENERGY; TO CREATE 9
1212 THE ELECTRIC RELIABILITY ACT; AND FOR OTHER PURPOSES. 10
1313 11
1414 12
1515 Subtitle 13
1616 TO AMEND THE LAW REGARDING ENERGY; AND 14
1717 TO CREATE THE ELECTRIC RELIABILITY ACT. 15
1818 16
1919 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
2020 18
2121 SECTION 1. Arkansas Code Title 23, Chapter 18, is amended to add an 19
2222 additional subchapter to read as follows: 20
2323 21
2424 Subchapter 13 — Electric Reliability Act 22
2525 23
2626 23-18-1301. Title. 24
2727 This subchapter shall be known and may be cited as the "Electric 25
2828 Reliability Act". 26
2929 27
3030 23-18-1302. Legislative findings. 28
3131 The General Assembly finds that: 29
3232 (1) Arkansas residents, including families and industries in 30
3333 this state, depend on reliable and affordable electric utility service for 31
3434 innumerable things they do, from operating lifesaving medical equipment to 32
3535 operating lifesaving building temperature and humidity control; 33
3636 (2) Electric utility service demand must be met with instant 34
3737 electric utility service supply or interruptions of electric utility service 35
3838 result; 36 HB1409
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4141 (3) In 2022, two hundred thirty (230) coal plants, that produce 1
4242 twenty percent (20%) of American electric utility service, were targeted for 2
4343 closure by activist groups, state and federal regulators, and utility 3
4444 companies, with dozens of coal plants across the United States slated for 4
4545 closure in the next three (3) years; 5
4646 (4) Also in 2022, eighty thousand (80,000) wind towers produced 6
4747 nine percent (9%) of electric utility service in the United States, and 7
4848 approximately six thousand (6,000) wind towers are added per year, but at 8
4949 least seven hundred fifty thousand (750,000) more wind towers are needed to 9
5050 replace coal and natural gas generation, and sufficient battery storage is 10
5151 needed to cover the seventy percent (70%) of the time during which wind 11
5252 towers produce little to no electric utility service; 12
5353 (5) Solar energy produced less than three percent (3%) of 13
5454 electricity in the United States in 2022, and only produces electricity 14
5555 during daylight hours when the sun shines, producing little or no electricity 15
5656 during daily peak demands of 5:00 p.m. to 9:00 p.m.; 16
5757 (6) The North American Electric Reliability Corporation, the 17
5858 regional transmission organizations, Midcontinent Independent System 18
5959 Operator, and Pennsylvania -New Jersey-Maryland Interconnection have warned 19
6060 that large swathes of the United States face elevated risks of electric 20
6161 utility service shortfalls now and in the future; 21
6262 (7) Restricting the supply of electric utility service without 22
6363 immediate substitutes jeopardizes reliability and affordability and will 23
6464 cause interruptions of electric utility service, often when needed most, 24
6565 during the hottest and coldest months; 25
6666 (8) Electric utility service in the United States has remained 26
6767 static for the last twenty (20) years, yet investments in new electric power 27
6868 generation have accelerated; 28
6969 (9) Rising electric utility service prices and decreased 29
7070 reliability will contribute to overall inflation; 30
7171 (10) America's coal and natural gas plants should not be 31
7272 recklessly decommissioned or regulated out of existence. Instead, they 32
7373 should be kept online and readily available to provide flexibility for 33
7474 national security in times of war, economic security, supply security, price 34
7575 stability, and reliability; 35
7676 (11) Winter storms have caused millions to lose electric utility 36 HB1409
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7979 service for extended periods, costing lives and billions of dollars in 1
8080 damages because of electric utility service shortages and outages; 2
8181 (12) The affordability and reliability of electric service is of 3
8282 major importance to low -income Arkansans because they spend the largest 4
8383 percentage of their income on energy and are harmed the most by high energy 5
8484 prices; and 6
8585 (13) Arkansas will use all means necessary to protect this 7
8686 state's electric utility service reliability because regulation of electric 8
8787 utility service and pollutants are not among the constitutionally delegated 9
8888 powers assigned to the United States Government and are reserved to the state 10
8989 under the Tenth Amendment to the United States Constitution. 11
9090 12
9191 23-18-1303. Reliability and availability of electric generation 13
9292 facilities — Definitions. 14
9393 (a) As used in this section: 15
9494 (1)(A) "Dispatchable" means a source of electric utility service 16
9595 that: 17
9696 (i) Is readily available for use on demand and can 18
9797 be dispatched upon request of a power grid operator; or 19
9898 (ii) Can have its power output adjusted according to 20
9999 market needs, except for routine maintenance or repairs. 21
100100 (B) "Dispatchable" includes on -demand power; 22
101101 (2) "Electric generation facility" means a facility that uses 23
102102 hydroelectric, coal, natural gas, or nuclear fuel to generate reliable or 24
103103 dispatchable electric utility service to a retail customer for compensation; 25
104104 (3)(A) "Firm power" means dispatchable, reliable power 26
105105 generation and battery storage of more than twenty -four (24) hours. 27
106106 (B) "Firm power" does not include power that is not 28
107107 dispatchable; and 29
108108 (4) "Reliable" means a source of electric utility service that: 30
109109 (A) Is not subject to intermittent availability; 31
110110 (B) Has a performance standard of eighty percent (80%) or 32
111111 higher; and 33
112112 (C) Has a performance standard that only falls below 34
113113 eighty percent (80%) during routine maintenance or repairs. 35
114114 (b)(1) The Arkansas Public Service Commission shall not authorize or 36 HB1409
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117117 approve the retirement of an electric generation facility as proposed in a 1
118118 rate case, integrated resource plan, or other submission to the commission 2
119119 until there is an equal or greater contracted new means of firm power 3
120120 available on the electric grid to replace the loss of firm power brought 4
121121 about by the proposed closure of the electric generation facility. 5
122122 (2) An equal or greater contracted new means of firm power under 6
123123 subdivision (b)(1) of this section shall not be from any future prospects. 7
124124 (c)(1) In assessing the amount of replacement firm power needed under 8
125125 subdivision (b)(1) of this section, the commission shall consider imminent 9
126126 and planned closures of electric generation facilities in other states of the 10
127127 member regional transmission organizations in addition to the imminent and 11
128128 planned closures in this state. 12
129129 (2) If other states of the member regional transmission 13
130130 organizations are not replacing their retired or closed electric generation 14
131131 facilities or other means of firm power that are scheduled for retirement 15
132132 with an equal or greater amount of firm power, the commission shall include 16
133133 the lack of replacements to the calculations of this state's replacement of 17
134134 firm power under subdivision (b)(1) of this section before approving the 18
135135 proposed closure of an electric generation facility. 19
136136 (d)(1) If the United States Government through regulation forces 20
137137 costly upgrades or other requirements leading to the closure of existing 21
138138 electric generation facilities, the commission shall seek a waiver from the 22
139139 federal government until there is sufficient replacement firm power available 23
140140 to the electric grid to replace the retired electric generation facility. 24
141141 (2) If a waiver is requested under subdivision (d)(1) of this 25
142142 section but is not granted, the commission shall seek a court injunction and 26
143143 bring litigation against the implementation of the closure of an electric 27
144144 generation facility. 28
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