1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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2 | 2 | | *ANS044* 02/05/2025 7:49:39 AM ANS044 |
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3 | 3 | | State of Arkansas 1 |
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4 | 4 | | 95th General Assembly A Bill 2 |
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5 | 5 | | Regular Session, 2025 HOUSE BILL 1409 3 |
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6 | 6 | | 4 |
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7 | 7 | | By: Representative Long 5 |
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8 | 8 | | 6 |
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9 | 9 | | 7 |
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10 | 10 | | For An Act To Be Entitled 8 |
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11 | 11 | | AN ACT TO AMEND THE LAW REGARDING ENERGY; TO CREATE 9 |
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12 | 12 | | THE ELECTRIC RELIABILITY ACT; AND FOR OTHER PURPOSES. 10 |
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13 | 13 | | 11 |
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14 | 14 | | 12 |
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15 | 15 | | Subtitle 13 |
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16 | 16 | | TO AMEND THE LAW REGARDING ENERGY; AND 14 |
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17 | 17 | | TO CREATE THE ELECTRIC RELIABILITY ACT. 15 |
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18 | 18 | | 16 |
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19 | 19 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17 |
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20 | 20 | | 18 |
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21 | 21 | | SECTION 1. Arkansas Code Title 23, Chapter 18, is amended to add an 19 |
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22 | 22 | | additional subchapter to read as follows: 20 |
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23 | 23 | | 21 |
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24 | 24 | | Subchapter 13 — Electric Reliability Act 22 |
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25 | 25 | | 23 |
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26 | 26 | | 23-18-1301. Title. 24 |
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27 | 27 | | This subchapter shall be known and may be cited as the "Electric 25 |
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28 | 28 | | Reliability Act". 26 |
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29 | 29 | | 27 |
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30 | 30 | | 23-18-1302. Legislative findings. 28 |
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31 | 31 | | The General Assembly finds that: 29 |
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32 | 32 | | (1) Arkansas residents, including families and industries in 30 |
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33 | 33 | | this state, depend on reliable and affordable electric utility service for 31 |
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34 | 34 | | innumerable things they do, from operating lifesaving medical equipment to 32 |
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35 | 35 | | operating lifesaving building temperature and humidity control; 33 |
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36 | 36 | | (2) Electric utility service demand must be met with instant 34 |
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37 | 37 | | electric utility service supply or interruptions of electric utility service 35 |
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38 | 38 | | result; 36 HB1409 |
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39 | 39 | | |
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41 | 41 | | (3) In 2022, two hundred thirty (230) coal plants, that produce 1 |
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42 | 42 | | twenty percent (20%) of American electric utility service, were targeted for 2 |
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43 | 43 | | closure by activist groups, state and federal regulators, and utility 3 |
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44 | 44 | | companies, with dozens of coal plants across the United States slated for 4 |
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45 | 45 | | closure in the next three (3) years; 5 |
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46 | 46 | | (4) Also in 2022, eighty thousand (80,000) wind towers produced 6 |
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47 | 47 | | nine percent (9%) of electric utility service in the United States, and 7 |
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48 | 48 | | approximately six thousand (6,000) wind towers are added per year, but at 8 |
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49 | 49 | | least seven hundred fifty thousand (750,000) more wind towers are needed to 9 |
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50 | 50 | | replace coal and natural gas generation, and sufficient battery storage is 10 |
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51 | 51 | | needed to cover the seventy percent (70%) of the time during which wind 11 |
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52 | 52 | | towers produce little to no electric utility service; 12 |
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53 | 53 | | (5) Solar energy produced less than three percent (3%) of 13 |
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54 | 54 | | electricity in the United States in 2022, and only produces electricity 14 |
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55 | 55 | | during daylight hours when the sun shines, producing little or no electricity 15 |
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56 | 56 | | during daily peak demands of 5:00 p.m. to 9:00 p.m.; 16 |
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57 | 57 | | (6) The North American Electric Reliability Corporation, the 17 |
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58 | 58 | | regional transmission organizations, Midcontinent Independent System 18 |
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59 | 59 | | Operator, and Pennsylvania -New Jersey-Maryland Interconnection have warned 19 |
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60 | 60 | | that large swathes of the United States face elevated risks of electric 20 |
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61 | 61 | | utility service shortfalls now and in the future; 21 |
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62 | 62 | | (7) Restricting the supply of electric utility service without 22 |
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63 | 63 | | immediate substitutes jeopardizes reliability and affordability and will 23 |
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64 | 64 | | cause interruptions of electric utility service, often when needed most, 24 |
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65 | 65 | | during the hottest and coldest months; 25 |
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66 | 66 | | (8) Electric utility service in the United States has remained 26 |
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67 | 67 | | static for the last twenty (20) years, yet investments in new electric power 27 |
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68 | 68 | | generation have accelerated; 28 |
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69 | 69 | | (9) Rising electric utility service prices and decreased 29 |
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70 | 70 | | reliability will contribute to overall inflation; 30 |
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71 | 71 | | (10) America's coal and natural gas plants should not be 31 |
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72 | 72 | | recklessly decommissioned or regulated out of existence. Instead, they 32 |
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73 | 73 | | should be kept online and readily available to provide flexibility for 33 |
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74 | 74 | | national security in times of war, economic security, supply security, price 34 |
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75 | 75 | | stability, and reliability; 35 |
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76 | 76 | | (11) Winter storms have caused millions to lose electric utility 36 HB1409 |
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77 | 77 | | |
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79 | 79 | | service for extended periods, costing lives and billions of dollars in 1 |
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80 | 80 | | damages because of electric utility service shortages and outages; 2 |
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81 | 81 | | (12) The affordability and reliability of electric service is of 3 |
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82 | 82 | | major importance to low -income Arkansans because they spend the largest 4 |
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83 | 83 | | percentage of their income on energy and are harmed the most by high energy 5 |
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84 | 84 | | prices; and 6 |
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85 | 85 | | (13) Arkansas will use all means necessary to protect this 7 |
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86 | 86 | | state's electric utility service reliability because regulation of electric 8 |
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87 | 87 | | utility service and pollutants are not among the constitutionally delegated 9 |
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88 | 88 | | powers assigned to the United States Government and are reserved to the state 10 |
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89 | 89 | | under the Tenth Amendment to the United States Constitution. 11 |
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90 | 90 | | 12 |
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91 | 91 | | 23-18-1303. Reliability and availability of electric generation 13 |
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92 | 92 | | facilities — Definitions. 14 |
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93 | 93 | | (a) As used in this section: 15 |
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94 | 94 | | (1)(A) "Dispatchable" means a source of electric utility service 16 |
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95 | 95 | | that: 17 |
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96 | 96 | | (i) Is readily available for use on demand and can 18 |
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97 | 97 | | be dispatched upon request of a power grid operator; or 19 |
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98 | 98 | | (ii) Can have its power output adjusted according to 20 |
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99 | 99 | | market needs, except for routine maintenance or repairs. 21 |
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100 | 100 | | (B) "Dispatchable" includes on -demand power; 22 |
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101 | 101 | | (2) "Electric generation facility" means a facility that uses 23 |
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102 | 102 | | hydroelectric, coal, natural gas, or nuclear fuel to generate reliable or 24 |
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103 | 103 | | dispatchable electric utility service to a retail customer for compensation; 25 |
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104 | 104 | | (3)(A) "Firm power" means dispatchable, reliable power 26 |
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105 | 105 | | generation and battery storage of more than twenty -four (24) hours. 27 |
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106 | 106 | | (B) "Firm power" does not include power that is not 28 |
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107 | 107 | | dispatchable; and 29 |
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108 | 108 | | (4) "Reliable" means a source of electric utility service that: 30 |
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109 | 109 | | (A) Is not subject to intermittent availability; 31 |
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110 | 110 | | (B) Has a performance standard of eighty percent (80%) or 32 |
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111 | 111 | | higher; and 33 |
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112 | 112 | | (C) Has a performance standard that only falls below 34 |
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113 | 113 | | eighty percent (80%) during routine maintenance or repairs. 35 |
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114 | 114 | | (b)(1) The Arkansas Public Service Commission shall not authorize or 36 HB1409 |
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115 | 115 | | |
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117 | 117 | | approve the retirement of an electric generation facility as proposed in a 1 |
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118 | 118 | | rate case, integrated resource plan, or other submission to the commission 2 |
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119 | 119 | | until there is an equal or greater contracted new means of firm power 3 |
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120 | 120 | | available on the electric grid to replace the loss of firm power brought 4 |
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121 | 121 | | about by the proposed closure of the electric generation facility. 5 |
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122 | 122 | | (2) An equal or greater contracted new means of firm power under 6 |
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123 | 123 | | subdivision (b)(1) of this section shall not be from any future prospects. 7 |
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124 | 124 | | (c)(1) In assessing the amount of replacement firm power needed under 8 |
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125 | 125 | | subdivision (b)(1) of this section, the commission shall consider imminent 9 |
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126 | 126 | | and planned closures of electric generation facilities in other states of the 10 |
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127 | 127 | | member regional transmission organizations in addition to the imminent and 11 |
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128 | 128 | | planned closures in this state. 12 |
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129 | 129 | | (2) If other states of the member regional transmission 13 |
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130 | 130 | | organizations are not replacing their retired or closed electric generation 14 |
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131 | 131 | | facilities or other means of firm power that are scheduled for retirement 15 |
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132 | 132 | | with an equal or greater amount of firm power, the commission shall include 16 |
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133 | 133 | | the lack of replacements to the calculations of this state's replacement of 17 |
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134 | 134 | | firm power under subdivision (b)(1) of this section before approving the 18 |
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135 | 135 | | proposed closure of an electric generation facility. 19 |
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136 | 136 | | (d)(1) If the United States Government through regulation forces 20 |
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137 | 137 | | costly upgrades or other requirements leading to the closure of existing 21 |
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138 | 138 | | electric generation facilities, the commission shall seek a waiver from the 22 |
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139 | 139 | | federal government until there is sufficient replacement firm power available 23 |
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140 | 140 | | to the electric grid to replace the retired electric generation facility. 24 |
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141 | 141 | | (2) If a waiver is requested under subdivision (d)(1) of this 25 |
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142 | 142 | | section but is not granted, the commission shall seek a court injunction and 26 |
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143 | 143 | | bring litigation against the implementation of the closure of an electric 27 |
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144 | 144 | | generation facility. 28 |
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