Bill Text For HB3028 - Enrolled

  |ENROLLED HOUSE                                                         |
  |BILL NO. 3028                        By:     Benge, Wesselhoft,        |
  |                                         Blackwell, Jett, Luttrell,    |
  |                                         Buck, Morrissette, Scott,     |
  |                                         Walker, Morgan, Brown,        |
  |                                         Roan, Dorman and Williams     |
  |                                         of the House                  |
  |                                                                       |
  |                                             and                       |
  |                                                                       |
  |                                         Myers, Branan, Gumm,          |
  |                                         Ivester, Rice, Corn,          |
  |                                         Garrison, Schulz and          |
  |                                         Johnson (Constance) of the    |
  |                                                              Senate   |
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  |       An Act relating to energy; creating the Oklahoma                |
  |       Energy Security Act; providing short title; stating             |
  |       public goals; stating legislative intent; defining              |
  |       terms; declaring public goal establishing a state               |
  |       renewable energy standard by certain date; defining             |
  |       qualifying renewable energy resources; providing                |
  |       method for determining certain renewable energy                 |
  |       percentage; declaring public goal promoting natural             |
  |       gas energy development; establishing a natural gas              |
  |       energy standard for certain uses; stating intent to             |
  |       use certain fuel for electric generation facilities;            |
  |       providing for percentage of energy efficiency and               |
  |       demand side management; promoting development of                |
  |       transmission grid for certain purpose; requiring                |
  |       report by certain date; declaring intent for                    |
  |       development of certain fueling stations by certain              |
  |       date; clarifying construction of act; providing for             |
  |       codification; and providing an effective date.                  |
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  |BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
  |                                                                       |
  |    SECTION 1.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.1 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
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  |    This act shall be known and may be cited as the "Oklahoma Energy   |
  |Security Act".                                                         |
  |                                                                       |
  |    SECTION 2.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.2 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |    It is the goal of the State of Oklahoma to reduce the dependence   |
  |of Oklahoma and the United States on foreign oil, to improve the       |
  |security of the United States in the world and to improve the          |
  |economic well-being of the citizens of Oklahoma.  The Legislature      |
  |hereby expresses its intent to take steps to increase the energy       |
  |independence of the United States by increasing the use of domestic    |
  |energy and renewable energy sources in Oklahoma, expand development    |
  |of domestic energy and renewable energy production and increase the    |
  |ability to export Oklahoma's domestic energy and renewable energy      |
  |resources to the rest of the United States.                            |
  |                                                                       |
  |    SECTION 3.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.3 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |    As used in the Oklahoma Energy Security Act:                       |
  |                                                                       |
  |    1.  "Commission" means the Corporation Commission;                 |
  |                                                                       |
  |    2.  "Demand side management" means the management of customer      |
  |consumption of electricity, or the demand for electricity, through     |
  |the implementation of:                                                 |
  |                                                                       |
  |         a.   load management or demand resource technologies,         |
  |              management practices or other strategies in              |
  |              residential, commercial, industrial, institutional or    |
  |              government customers that shift electric loads from      |
  |              periods of higher demand to periods of lower demand,     |
  |              or                                                       |
  |                                                                       |
  |         b.   industrial by-product technologies consisting of the     |
  |              use of a by-product from an industrial process,          |
  |              including the reuse of energy from exhaust gases or      |
  |              other manufacturing by-products that are used in the     |
  |              direct production of electricity at the facility of a    |
  |              customer; and                                            |
  |                                                                       |
  |    3.  "Energy efficiency" means technologies, management practices   |
  |or other strategies in residential, commercial, institutional, or      |
  |government customers that reduce electricity use by those consumers.   |
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  |    SECTION 4.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.4 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |    A.  The Legislature declares that it is in the public interest     |
  |to promote renewable energy development in order to best utilize the   |
  |abundant natural resources found in this state.                        |
  |                                                                       |
  |    B.  It is hereby declared the intent of the State of Oklahoma to   |
  |increase the use of renewable energy in the state by setting a         |
  |renewable energy standard that will serve as a goal to be reached by   |
  |the year 2015.                                                         |
  |                                                                       |
  |    C.  There is hereby established a renewable energy standard for    |
  |the state that will serve as a goal for the year 2015.  The            |
  |renewable energy standard shall be a goal that fifteen percent (15%)   |
  |of all installed capacity of electricity generation within the state   |
  |by the year 2015 be generated from renewable energy sources.           |
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  |    D.  For purposes of this section, qualifying renewable energy      |
  |resources shall include:                                               |
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  |    1.  Wind;                                                          |
  |                                                                       |
  |    2.  Solar;                                                         |
  |                                                                       |
  |    3.  Photovoltaic;                                                  |
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  |    4.  Hydropower;                                                    |
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  |    5.  Hydrogen;                                                      |
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  |    6.  Geothermal;                                                    |
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  |    7.  Biomass, which projects may include agricultural crops,        |
  |wastes, and residues, wood, animal and other degradable organic        |
  |wastes, municipal solid waste, and landfill gas;                       |
  |                                                                       |
  |    8.  Distributed generation from an eligible renewable energy       |
  |resource where the generating facility or any integrated cluster of    |
  |such facilities has an installed generating capacity of not more       |
  |than five (5) megawatts;                                               |
  |                                                                       |
  |    9.  Other renewable sources approved by the Commission; and        |
  |                                                                       |
  |    10.  Demand side management and energy efficiency as provided in   |
  |Section 6 of this act.                                                 |
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  |    E.  The annual renewable energy percentage shall be determined     |
  |by dividing all installed capacity of renewable electricity            |
  |generation in Oklahoma by the total installed capacity of all          |
  |electricity generation in Oklahoma.  Every electricity generating      |
  |entity or company operating electricity generation facilities in       |
  |Oklahoma shall report to the Commission by March 1 each year the       |
  |installed capacity of each of its generating facilities, the number    |
  |of kilowatt hours generated by each facility in Oklahoma and from      |
  |which source of energy the electricity was produced.                   |
  |                                                                       |
  |    SECTION 5.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.5 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |    A.  The Legislature declares that it is in the public interest     |
  |to promote natural gas energy development in order to take advantage   |
  |of our state's vast natural gas resources and its compatibility with   |
  |wind energy.                                                           |
  |                                                                       |
  |    B.  It is further declared the intent of the Legislature to        |
  |promote natural gas energy development in this state by establishing   |
  |a natural gas energy standard to increase the use of natural gas as    |
  |an electricity generation fuel.                                        |
  |                                                                       |
  |    C.  There is hereby established a natural gas energy standard to   |
  |supplement the increased volume of renewable energy and to             |
  |capitalize on the state's abundant natural gas resources.  The         |
  |natural gas energy standard shall be achieved by declaring natural     |
  |gas as the preferred choice of electric generation for new fossil      |
  |fuel generating facilities in this state after the effective date of   |
  |this act through January 1, 2020.                                      |
  |                                                                       |
  |    D.  Beginning January 1, 2011, through January 1, 2020, it is      |
  |the intent of the state that new fossil fuel generating facilities     |
  |and added capacity to existing fossil fuel generating facilities       |
  |built in this state be powered by natural gas.  Any electricity        |
  |generating entity in the state choosing a fossil fuel source other     |
  |than natural gas may provide evidence to the Corporation Commission,   |
  |or other appropriate regulatory body of those entities not regulated   |
  |by the Commission, that the fossil fuel source chosen by such entity   |
  |is in the best interest of this state's electric consumers.            |
  |                                                                       |
  |    SECTION 6.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.6 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |                                                                       |
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  |    Energy efficiency and demand side management are important         |
  |components to maximizing the energy resources of our state.            |
  |Therefore, every electricity generating entity in Oklahoma may use     |
  |energy efficiency and demand side management measures to assist the    |
  |state in meeting its renewable energy standard.  Provided, however,    |
  |that demand side management may not be used to meet more than          |
  |twenty-five percent (25%) of the overall fifteen percent (15%)         |
  |renewable energy standard for the state.  Energy conservation          |
  |measures shall be described and quantified to the Corporation          |
  |Commission on March 1 annually.  The Commission shall make the final   |
  |determination of the amount of generation capacity the electricity     |
  |generating entity conserved and determine to what degree that will     |
  |count toward meeting the renewable energy standard for the state.      |
  |                                                                       |
  |    SECTION 7.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 287 of Title 17, unless there is   |
  |created a duplication in numbering, reads as follows:                  |
  |                                                                       |
  |    A.  The Legislature declares that it is in the public interest     |
  |to promote the development of a robust transmission grid to            |
  |facilitate delivery of renewable energy and improve reliability of     |
  |the electric transmission system.  It is further in the public         |
  |interest, in cooperation with electricity transmission entities and    |
  |the Southwest Power Pool, to promote wind-energy development in the    |
  |state to the extent that the renewable energy generated from wind      |
  |can be utilized in every part of the state and exported to other       |
  |states.                                                                |
  |                                                                       |
  |    B.  The Legislature and the Corporation Commission shall work      |
  |with the Southwest Power Pool to develop a plan to expand              |
  |transmission capacity in the state and monitor the construction of     |
  |new transmission facilities in the state through the year 2020.  The   |
  |Commission shall report on the progress in expanding transmission      |
  |capacity by January 1, 2014, and January 1, 2017, with a final         |
  |report issued by January 1, 2020.                                      |
  |                                                                       |
  |    SECTION 8.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 78f of Title 74, unless there is   |
  |created a duplication in numbering, reads as follows:                  |
  |                                                                       |
  |    A.  The Legislature declares that it is in the public interest     |
  |to promote public access to compressed natural gas (CNG) fueling       |
  |stations in the state.                                                 |
  |                                                                       |
  |    B.  It is the intent of the Legislature to increase the number     |
  |of public access CNG fueling stations located along the interstate     |
  |highway system in the state.                                           |
  |                                                                       |
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  |    C.  It shall be the goal to have at least one public CNG fueling   |
  |station located approximately every one hundred (100) miles along      |
  |the entire interstate highway system in the state by the year 2015.    |
  |The goal shall increase to at least one public CNG fueling station     |
  |approximately every fifty (50) miles by the year 2025.                 |
  |                                                                       |
  |    D.  The Department of Central Services through the Fleet           |
  |Management Division may take steps to meet the goal set forth in       |
  |this section by cooperating with or entering into partnership          |
  |agreements with private entities to construct the necessary CNG        |
  |fueling stations for use by the public, state agencies and political   |
  |subdivisions of the state.  Any agreement to construct a CNG fueling   |
  |station pursuant to this section shall be subject to the public        |
  |bidding requirements as set forth in The Oklahoma Central Purchasing   |
  |Act.                                                                   |
  |                                                                       |
  |    SECTION 9.     NEW LAW     A new section of law to be codified     |
  |in the Oklahoma Statutes as Section 801.7 of Title 17, unless there    |
  |is created a duplication in numbering, reads as follows:               |
  |                                                                       |
  |    Nothing in the Oklahoma Energy Security Act shall be construed     |
  |to impair the authority of the Corporation Commission to ensure        |
  |reasonable rates for consumers.                                        |
  |                                                                       |
  |    SECTION 10.  This act shall become effective November 1, 2010.     |
  |                                                                       |
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  |    Passed the House of Representatives the 17th day of May, 2010.     |
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  |                                  Presiding Officer of the House of    |
  |                                                    Representatives    |
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  |    Passed the Senate the 20th day of May, 2010.                       |
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  |                                  Presiding Officer of the Senate      |
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