Kansas 2023-2024 Regular Session

Kansas House Bill HB2588 Compare Versions

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Version 2 (New)

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	1	+	Session of 2024
1	2		HOUSE BILL No. 2588
2		-	AN ACT concerning counties; relating to the public right-of-way; authorizing
3		-	telecommunication, broadband and video service providers to operate in county
4		-	public right-of-way; limiting the fees and costs that a county may impose upon such
5		-	providers for such activities.
	3	+	By Committee on Energy, Utilities and Telecommunications
	4	+	Requested by Jessica Lucas on behalf of the Clean Energy Business Council
	5	+	1-24
	6	+	AN ACT concerning electric public utilities; relating to net metering;
	7	+	increasing the system-wide capacity limit for facilities subject to net
	8	+	metering; requiring such facilities to be appropriately sized based on
	9	+	the customer's expected load; establishing requirements for exporting
	10	+	power to a utility from a facility subject to net metering; amending
	11	+	K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 and repealing the
	12	+	existing sections.
6	13		Be it enacted by the Legislature of the State of Kansas:
7		-	Section 1. (a) The Kansas legislature finds and declares that:
8		-	(1) The permitting, construction, modification, maintenance and
9		-	operation of telecommunications facilities are critical to ensuring that
10		-	all citizens in the state have true access to broadband and other
11		-	advanced technology and information;
12		-	(2) telecommunications facilities are critical to ensuring that
13		-	businesses and schools throughout the state remain competitive in the
14		-	global economy;
15		-	(3) telecommunications facilities that enable broadband services
16		-	have a significant economic benefit; and
17		-	(4) the permitting, construction, modification, maintenance and
18		-	operation of telecommunications facilities, to the extent specified in
19		-	this section, are declared to be matters of statewide concern and
20		-	interest.
21		-	(b) As used in this section:
22		-	(1) "Public right-of-way" means only the area of real property in
23		-	which a county has a dedicated or acquired right-of-way interest in the
24		-	real property. "Public right-of-way" includes the area on, below or
25		-	above the present and future streets, roads, highways, parkways or
26		-	boulevards dedicated or acquired as right-of-way by a county. "Public
27		-	right-of-way" does not include:
28		-	(A) The airwaves above a "public right-of-way" with respect to
29		-	wireless telecommunications or other non-wire telecommunications or
30		-	broadcast services;
31		-	(B) easements obtained by utilities or private easements; or
32		-	(C) any real property, structures or facilities under the ownership,
33		-	control or jurisdiction of the secretary of transportation.
34		-	(2) "Provider" means a local exchange carrier or
35		-	telecommunications carrier as such terms are defined in K.S.A. 66-
36		-	1,187 and amendments thereto, or a video service provider as defined
37		-	in K.S.A. 12-2022, and amendments thereto. "Provider" does not
38		-	include an applicant as defined in K.S.A. 66-2019, and amendments
	14	+	Section 1. K.S.A. 66-1264 is hereby amended to read as follows: 66-
	15	+	1264. As used in the net metering and easy connection act:
	16	+	(a) "Commission" means the state corporation commission.
	17	+	(b) "Customer-generator" means the owner or operator of a net
	18	+	metered facility which that:
	19	+	(1) Is powered by a renewable energy resource;
	20	+	(2) is located on a premises owned, operated, leased or otherwise
	21	+	controlled by the customer-generator;
	22	+	(3) is interconnected and operates in parallel phase and
	23	+	synchronization with an affected utility and is in compliance with the
	24	+	standards established by the affected utility;
	25	+	(4) is intended primarily to offset part or all of the customer-
	26	+	generator's own electrical energy requirements such that the customer-
	27	+	generator will fully consume the energy output and will deliver the
	28	+	remaining energy output and all other services to the utility; and
	29	+	(5) contains a an underwriter laboratories listed mechanism,
	30	+	approved by the utility, that automatically disables the unit and interrupts
	31	+	the flow of electricity back onto the supplier's utility's electricity lines in
	32	+	the event that service to the customer-generator is interrupted.
	33	+	(c) "Export" means power that flows from a customer-generator's
	34	+	electrical system through a customer's billing meter and onto the utility's
	35	+	electricity lines.
	36	+	(d) "Generating capacity" means the maximum amount of alternating
	37	+	current power that a customer generator's net metered system can
	38	+	produce.
	39	+	(e) "Peak demand" shall have the meaning ascribed thereto means the
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	75	+	same as defined in K.S.A. 66-1257, and amendments thereto.
	76	+	(f) "Permission to operate" means the operational date of the
	77	+	customer-generator's net metered facility.
	78	+	(d)(g) "Renewable energy resources" shall have the meaning ascribed
	79	+	thereto means the same as defined in K.S.A. 66-1257, and amendments
39	80		thereto.
40		-	(c) Without abrogating any rights held by a video service provider
41		-	pursuant to a state-issued video service authorization, any provider
42		-	shall have the right pursuant to this section to construct, maintain and
43		-	operate poles, conduit, cable, switches and related appurtenances and
44		-	facilities along, across, upon and under any public right-of-way in this
45		-	state. Such poles, conduit, cable, switches and related appurtenances
46		-	and facilities shall be so constructed and maintained as not to obstruct
47		-	or hinder the usual travel or public safety on such public ways or the
48		-	legal use by other utilities or providers.
49		-	(d) A county shall impose any and all public right-of-way access
50		-	and permit processes in a nondiscriminatory and competitively neutral
51		-	manner to all similarly situated providers, including, but not limited to:
52		-	(1) The permit fees charged by the county;
53		-	(2) the forms and filings required by the county for a permit
54		-	application;
55		-	(3) the time with which a county may approve or deny a permit;
	81	+	(h) "Supplied" means power that flows from the utility's electricity
	82	+	lines through a customer's billing meter and into a customer-generator's
	83	+	electrical system.
	84	+	(e)(i) "Utility" means investor-owned electric utility.
	85	+	(j) "Witness test" means a representative of the utility is on-site to
	86	+	measure or verify a specific setting or operational condition.
	87	+	Sec. 2. K.S.A. 66-1265 is hereby amended to read as follows: 66-
	88	+	1265. Each utility shall:
	89	+	(a) (1) Except as provided in paragraph (2), make net metering
	90	+	available to customer-generators who are in good standing with the utility
	91	+	on a first-come, first-served basis, until the total rated generating capacity
	92	+	as approved by the utility of all net metered systems equals or exceeds
	93	+	one:
	94	+	(A) Commencing July 1, 2024, percent 2% of the utility's peak
	95	+	demand during the previous year;
	96	+	(B) commencing July 1, 2025, 3% of the utility's peak demand during
	97	+	the previous year;
	98	+	(C) commencing July 1, 2026, 4% of the utility's peak demand during
	99	+	the previous year; and
	100	+	(D) commencing July 1, 2027, 5% of the utility's peak demand.
	101	+	(2) The commission may increase the total rated generating capacity
	102	+	of all net metered systems to an amount above one percent 5% after
	103	+	conducting a hearing pursuant to K.S.A. 66-101d, and amendments
	104	+	thereto;
	105	+	(b) provide an appropriate class bidirectional meter to the customer-
	106	+	generator at no charge, but may charge the customer-generator for the cost
	107	+	of any additional metering or distribution equipment necessary to
	108	+	accommodate the customer-generator's facility;
	109	+	(c) disclose annually the availability of the net metering program to
	110	+	each of its customers with the method and manner of disclosure being at
	111	+	the discretion of the utility;
	112	+	(d) for any customer-generator which that began operating its
	113	+	renewable energy resource under an interconnect agreement with the
	114	+	utility prior to July 1, 2014, offer to the customer-generator a tariff or
	115	+	contract that is identical in electrical energy rates, rate structure and
	116	+	monthly charges to the contract or tariff that the customer would be
	117	+	assigned if the customer were not an eligible customer-generator and shall
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	161	+	not charge the customer-generator any additional standby, capacity,
	162	+	interconnection or other fee or charge that would not otherwise be charged
	163	+	if the customer were not an eligible customer-generator; and
	164	+	(e) for any customer-generator which that began operating its
	165	+	renewable energy resource under an interconnect agreement with the
	166	+	utility on or after July 1, 2014, have the option to propose, within an
	167	+	appropriate rate proceeding, the application of time-of-use rates, minimum
	168	+	bills, incentive programs or other rate structures that would apply to all
	169	+	such customer-generators prospectively.
	170	+	Sec. 3. K.S.A. 66-1266 is hereby amended to read as follows: 66-
	171	+	1266. (a) Prior to January 1, 2030, for any customer-generator that began
	172	+	operating a renewable energy resource under an interconnect agreement
	173	+	with the utility prior to July 1, 2014:
	174	+	(1) If the electricity supplied by the utility exceeds the electricity
	175	+	generated exported by the customer-generator during a billing period, the
	176	+	customer-generator shall be billed for the net electricity supplied by the
	177	+	utility in accordance with normal practices for customers in the same rate
	178	+	class.
	179	+	(2) If such customer-generator generates exports electricity in excess
	180	+	of the customer-generator's monthly consumption electricity supplied by
	181	+	the utility, all such net excess energy (NEG) generation, expressed in
	182	+	kilowatt-hours, shall be carried forward from month-to-month and credited
	183	+	at a ratio of one-to-one against the customer-generator's energy
	184	+	consumption electricity supplied by the utility, expressed in kilowatt-hours,
	185	+	in subsequent months.
	186	+	(3) Any interconnect agreement between such customer-generator
	187	+	and a utility and all such NEG generated net excess generation exported
	188	+	under such agreement shall be transferrable transferable and continue in
	189	+	place until January 1, 2030, regardless of whether there is a change in
	190	+	ownership of the property on which where the renewable energy resource
	191	+	is located.
	192	+	(4) Any NEG resulting net excess generation exported from
	193	+	renewable energy resources that are installed on and after July 1, 2014, but
	194	+	are part of an installation of a renewable energy resource that was
	195	+	operating prior to July 1, 2014, shall be carried forward and credited to the
	196	+	customer as if such resources had begun operation prior to July 1, 2014.
	197	+	(5) Any net excess generation credit remaining in a net-metering
	198	+	customer's account on March 31 of each year shall expire.
	199	+	(b) For any customer-generator that began operating a renewable
	200	+	energy resource under an interconnect agreement with the utility on and
	201	+	after July 1, 2014:
	202	+	(1) If the electricity supplied by the utility exceeds the electricity
	203	+	generated exported by the customer-generator during a billing period, the
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	247	+	customer-generator shall be billed for the net electricity supplied by the
	248	+	utility.
	249	+	(2) If such customer-generator generates exports electricity in excess
	250	+	of the customer-generator's monthly consumption electricity supplied by
	251	+	the utility, all such NEG net excess generation remaining in such
	252	+	customer-generator's account at the end of each billing period shall be
	253	+	credited to the customer at a rate of at least 100% of the utility's monthly
	254	+	system average cost of energy per kilowatt hour.
	255	+	(c) Except as otherwise provided in subsection (d), on and after
	256	+	January 1, 2030, for all customer-generators, regardless of when such
	257	+	customer-generators entered into an interconnect agreement with the
	258	+	utility:
	259	+	(1) If the electricity supplied by the utility exceeds the electricity
	260	+	generated exported by the customer-generator during a billing period, the
	261	+	customer-generator shall be billed for the net electricity supplied by the
	262	+	utility; and
	263	+	(2) if such customer-generator generates exports electricity in excess
	264	+	of the customer-generator's monthly consumption electricity supplied by
	265	+	the utility, all such NEG net excess generation remaining in a customer-
	266	+	generator's account at the end of each billing period shall be credited to the
	267	+	customer at a rate of at least 100% of the utility's monthly system average
	268	+	cost of energy per kilowatt hour.
	269	+	(d) For any customer-generator that began operating a renewable
	270	+	energy resource under an interconnect agreement with the utility on and
	271	+	after July 1, 2024, and receives service on an optional time-varying rate:
	272	+	(1) The utility shall measure the net electrical energy exported or
	273	+	supplied during the billing period for each of the time of use periods
	274	+	established by the applicable time-varying rate schedule that applies to
	275	+	the customer-generator's rate class in accordance with normal metering
	276	+	practices for customers that take service on time-varying rates in that
	277	+	same rate class;
	278	+	(2) electricity supplied by the utility shall be netted against the
	279	+	electricity exported by the customer-generator during each applicable
	280	+	time of use period;
	281	+	(3) if the electricity supplied by the utility exceeds the electricity
	282	+	exported by the customer-generator during any time of use period, the
	283	+	customer-generator shall be billed for the net electricity supplied by the
	284	+	utility in each such time of use period as well as all other charges as such
	285	+	charges are applied to non-customer-generators in the same rate class;
56	286		and
57		-	(4) options for waivers regarding such permit fees, forms and
58		-	filings.
59		-	(e) No county shall create, enact or erect any discriminatory,
60		-	unreasonable condition, requirement or barrier for entry into or use of
61		-	the public right-of-way by a provider.
62		-	(f) A county may only assess the following non-discriminatory
63		-	and competitively neutral fees against a provider, for the administration
64		-	and orderly use of the public right-of-way, provided that such fees
65		-	reimburse the county for the county's reasonable, actual and verifiable HOUSE BILL No. 2588—page 2
66		-	costs of managing the public right-of-way:
67		-	(1) A construction permit fee charged in connection with issuing a
68		-	construction permit to set fixtures in the public right-of-way that
69		-	compensates the county for the reasonable administrative expenses
70		-	incurred by the county for issuing, processing and verifying the permit
71		-	application;
72		-	(2) an excavation permit fee for each pavement cut to recover the
73		-	direct and reasonable costs associated with construction and repair
74		-	activity of the provider. Any excavation permit fee imposed by the
75		-	county shall be based upon a regional specific or other appropriate
76		-	study establishing the basis for such costs that takes into account the
77		-	life of the county road or highway prior to the construction or repair
78		-	activity and the remaining life of the road or highway. Such excavation
79		-	permit fee shall be expressly limited to the proportion of the cost
80		-	attributable to the activity of the provider that results in an actual
81		-	pavement cut; and
82		-	(3) inspection fees to recover all reasonable costs associated with
83		-	a county's inspection of the work of the provider in the right-of-way.
84		-	(g) A county shall authorize any video service provider as defined
85		-	in K.S.A. 12-2022, and amendments thereto, to offset any fees and
86		-	charges imposed pursuant to this section against payment of any video
87		-	service provider fee imposed pursuant to K.S.A. 12-2024, and
88		-	amendments thereto.
89		-	(h) A county may assess against a provider costs associated with
90		-	repairing and restoring the public right-of-way because of damage
91		-	caused by the provider, its assigns, contractors or subcontractors, or
92		-	both, in the public right-of-way. A county may require a provider to
93		-	furnish a performance bond, in a form acceptable to the county, from a
94		-	surety licensed to conduct surety business in the state of Kansas, to
95		-	ensure appropriate and timely performance in the construction and
96		-	maintenance of facilities located in the public right-of-way.
97		-	(i) A county may not assess any additional fees or costs against
98		-	providers for use or occupancy of the public right-of-way other than
99		-	those specified in this section. Any fees or costs imposed pursuant to
100		-	this section shall be imposed upon all such providers in a
101		-	nondiscriminatory and competitively neutral manner.
102		-	(j) Upon request by a provider, a county shall, in a timely manner,
103		-	provide an accounting for the reasonable, actual and verifiable costs
104		-	that are the basis for any fee permitted in subsection (f).
105		-	(k) This section may not be construed to affect any valid taxation
106		-	of a provider's facilities or services.
107		-	(l) Any ordinance enacted prior to the effective date of this act
108		-	governing the use and occupancy of the public right-of-way by a
109		-	provider shall not conflict with the provisions of this section.
110		-	(m) No provider shall enter into a contract or any other agreement
111		-	with a county to sell or provide a product or service that the provider's
112		-	business does not actually sell or provide.
113		-	(n) Any county or provider may bring an action in a court of
114		-	competent jurisdiction to enforce the provisions of this act. HOUSE BILL No. 2588—page 3
115		-	Sec. 2. This act shall take effect and be in force from and after its
	287	+	(4) if the electricity exported by the customer-generator exceeds the
	288	+	electricity supplied by the utility during any time of use period, the
	289	+	customer-generator shall be credited at a rate of at least 100% of the
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	333	+	utility's monthly system average cost of energy per kilowatt hour, with any
	334	+	net credit, and net of all other charges as such charges are applied to non-
	335	+	customer-generators in the same rate class, applied to the next billing
	336	+	period.
	337	+	Sec. 4. K.S.A. 66-1267 is hereby amended to read as follows: 66-
	338	+	1267. (a) For customer-generators that began operating a renewable energy
	339	+	resource under an interconnect agreement with the utility prior to July 1,
	340	+	2014:
	341	+	(1) Such utility shall allow:
	342	+	(A) Residential customer-generators to generate export electricity
	343	+	subject to net metering up to 25 kilowatts; and
	344	+	(B) commercial, industrial, school, local government, state
	345	+	government, federal government, agricultural and institutional customer-
	346	+	generators to generate export electricity subject to net metering up to 200
	347	+	kilowatts.
	348	+	(2) Nothing in this act shall be construed to prevent such customer-
	349	+	generators from installing additional renewable energy resources after July
	350	+	1, 2014, that will generate electricity pursuant to the restrictions contained
	351	+	in paragraph (1).
	352	+	(b) For customer-generators that begin operating a renewable energy
	353	+	resource under an interconnect agreement with the utility after July 1,
	354	+	2014, such utility shall allow:
	355	+	(1) All residential customer-generators to generate electricity subject
	356	+	to net metering up to 15 kilowatts;
	357	+	(2) commercial, industrial, religious institution, local government,
	358	+	state government, federal government, agricultural and industrial
	359	+	customer-generators to generate electricity subject to net metering up to
	360	+	100 kilowatts, unless otherwise agreed to by the utility and the customer-
	361	+	generator; and
	362	+	(3) school customer-generators to generate electricity subject to net
	363	+	metering up to 150 kilowatts. For the purpose of this section, "school"
	364	+	means any postsecondary educational institution as defined in K.S.A. 74-
	365	+	3201b, and amendments thereto, or any public or private school which
	366	+	provides instruction for students enrolled in grade kindergarten or grades
	367	+	one through 12 customer-generators to export electricity subject to net
	368	+	metering up to 150 kilowatts alternating current.
	369	+	(c) Customer-generators shall appropriately size their generation
	370	+	export capacity to their expected load as follows:
	371	+	(1) (A) (i) Divide the customer-generator's historic consumption in
	372	+	kilowatt-hours for the previous 12-month period by 8,760; and
	373	+	(ii) divide the quotient calculated pursuant to paragraph (1)(A)(i) by
	374	+	a capacity factor of 0.144; or
	375	+	(B) if the customer-generator does not have historic consumption
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	419	+	data that adequately reflects the customer's consumption at such premises,
	420	+	the customer-generator's historic consumption for the previous 12-month
	421	+	period shall be 7.15 kilowatt-hours per square foot of conditioned space;
	422	+	and
	423	+	(2) round up the quotient calculated pursuant to paragraph (1)(A)(i)
	424	+	or the amount determined pursuant to paragraph (1)(B) to the nearest
	425	+	standard size as follows:
	426	+	(A) Between two kilowatts alternating current power and 20 kilowatts
	427	+	alternating current power, round up to the nearest two kilowatts
	428	+	alternating current power increment; and
	429	+	(B) between 20 kilowatts alternating current power and 150 kilowatts
	430	+	alternating current power, round up to the nearest five kilowatts
	431	+	alternating current power increment.
	432	+	(d) For customer-generators that operate a renewable energy
	433	+	resource under an interconnect agreement with the affected utility on or
	434	+	after January 1, 2026:
	435	+	(1) The generating capacity of a customer-generator's renewable
	436	+	energy resource as approved by the affected utility shall not exceed export
	437	+	capacity by more than 50%; and
	438	+	(2) energy storage capacity, including electric vehicles or other
	439	+	portable energy storage devices, shall not be included in any sizing
	440	+	formulas unless the energy storage device has the ability to add export
	441	+	capacity and is not part of an export limited system.
	442	+	(e) For customer-generators that operate a generation resource
	443	+	designed to export an amount of power that differs from the system's
	444	+	generating capacity:
	445	+	(1) The customer-generator shall own and maintain any necessary
	446	+	export limiting device;
	447	+	(2) protections shall be in place to restrict the export limiting device
	448	+	settings to qualified persons;
	449	+	(3) the utility shall have the option to require a witness test of the
	450	+	export limiting device's function or set points prior to granting permission
	451	+	to operate;
	452	+	(4) the export capacity of the system shall not be increased without
	453	+	prior approval from the utility;
	454	+	(5) the customer-generator shall allow the utility to perform periodic
	455	+	witness testing of the export limiting device's function or settings upon
	456	+	request;
	457	+	(6) if the export limiting device's settings are incorrect or if the
	458	+	device fails to limit the export of power below the designed export
	459	+	capacity for more than 15 minutes in any single event, the customer-
	460	+	generator shall cease operation of the system until repair or
	461	+	reprogramming of the limiting device is completed; and
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	504	+	43 HB 2588 7
	505	+	(7) the utility shall not restrict the brand or model of the limiting
	506	+	device if the device is approved by the generator's manufacturer or is
	507	+	underwriter laboratories listed to perform such operations in conjunction
	508	+	with the customer-generator's system.
	509	+	Sec. 5. K.S.A. 66-1264, 66-1265, 66-1266 and 66-1267 are hereby
	510	+	repealed.
	511	+	Sec. 6. This act shall take effect and be in force from and after its
116	512		publication in the statute book.
117		-	I hereby certify that the above BILL originated in the
118		-	HOUSE, and was adopted by that body
119		-
120		-	HOUSE adopted
121		-	Conference Committee Report
122		-
123		-	Speaker of the House.
124		-
125		-	Chief Clerk of the House.
126		-	Passed the SENATE
127		-	as amended
128		-	SENATE adopted
129		-	Conference Committee Report
130		-
131		-	President of the Senate.
132		-
133		-	Secretary of the Senate.
134		-	APPROVED
135		-
136		-
137		-	Governor.
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