State energy plan assessment advanced

Senators gave first-round approval April 20 to a bill that would allow the state to develop an independent energy plan.

LB469, introduced by Papillion Sen. Jim Smith, would direct the State Energy Office to assess any state energy plan before submitting the plan to the federal Environmental Protection Agency (EPA) for review. Smith said that the EPA has proposed a “one-size-fits-all” plan to reduce carbon emissions that is unworkable in a coal state like Nebraska.

“This assessment will provide us information that will be valuable as we move forward in developing a comprehensive energy plan for the state,” he said. “It is not intended to hamper the state Department of Environmental Quality’s ability to comply with federal mandates, but to provide the Legislature and public with information and transparency.”

Smith said that citizens have a right to know how the EPA’s proposal would impact the state and to look for alternatives.

Under the bill, the energy office would prepare a report analyzing the proposed state energy plan’s effects on employment within the state and the electric power sector, including the potential impact on:
• the type and amount of electric generating capacity that is likely to retire or switch to another fuel;
• the stranded investment in electric generating capacity;
• the amount of investment necessary to offset the retirement of electric generating capacity;
• the potential risks to electric reliability; and
• the amount by which retail electricity prices are forecast to increase or decrease.

A Natural Resources Committee amendment, adopted 41-0, incorporated provisions of LB583, originally introduced by Ogallala Sen. Ken Schilz.

The amendment specified the areas of analysis for a state energy plan, which would be developed by the State Energy Office. The plan would focus on strategies to develop a cost-competitive energy supply, access to affordable energy, sustainable economic growth and job creation.

Schilz said that a plan created at the local level would help ensure Nebraska’s adaptability to changing circumstances.

“A state energy plan developed under the guidance of the State Energy Office and with the cooperation of public power entities will help to set a vision to guide policy for state and local governments,” he said.

Omaha Sen. Brett Lindstrom supported the bill, saying it would provide the state with needed flexibility.

“We need to be able to create a plan that shows we’re doing what we can to meet carbon emission standards, but to also show the EPA that we are unique [as a public power state] and cannot conform to a one-size-fits-all plan,” he said.

The bill advanced to select file on a 39-0 vote.