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Energy and Environment Legislative Digest 2001

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Energy and Environment Legislative Digest 2001 Energy and Environment Legislative Digest 2001 A compilation of representative energy and environmental quality legislation enacted by 18 southern states and territories during the 2001 legislative sessions With an introduction by the Honorable Judy Hawley State Representative of Texas SSEB Vice-Chair September 2001 Published by: Southern States Energy Board 6325 Amherst Court Norcross, Georgia 30092 Phone: (770) 242-7712 Fax: (770) 242-9956 Email: [email protected] Web: www.sseb.org 1 Table of Contents Introduction: Representative Judy Hawley, Texas -------------------------------------------- 5 Categories of Energy Legislation --------------------------------------------------------------- 15 Categories of Environmental Legislation ----------------------------------------------------- 17 Note on Using the Matrices and Graphs ----------------------------------------------------- 19 Matrix of 2001 Energy Legislation ------------------------------------------------------------- 21 Matrix of 2001 Environmental Legislation --------------------------------------------------- 23 Graph of Overall Energy Legislation ---------------------------------------------------------- 25 Graph of Overall Environmental Legislation ------------------------------------------------- 27 Alabama --------------------------------------------------------------------------------------------- 29 Arkansas --------------------------------------------------------------------------------------------- 39 Florida ------------------------------------------------------------------------------------------------ 55 Georgia ----------------------------------------------------------------------------------------------- 67 Kentucky--------------------------------------------------------------------------------------------- 79 Louisiana --------------------------------------------------------------------------------------------- 87 Maryland --------------------------------------------------------------------------------------------- 113 Mississippi -------------------------------------------------------------------------------------------- 135 Missouri ---------------------------------------------------------------------------------------------- 147 North Carolina -------------------------------------------------------------------------------------- 159 Oklahoma ------------------------------------------------------------------------------------------- 169 Puerto Rico ------------------------------------------------------------------------------------------ 185 South Carolina -------------------------------------------------------------------------------------- 191 Tennessee -------------------------------------------------------------------------------------------- 199 Texas ------------------------------------------------------------------------------------------------- 211 U.S. Virgin Islands --------------------------------------------------------------------------------- 223 Virginia ---------------------------------------------------------------------------------------------- 225 West Virginia --------------------------------------------------------------------------------------- 249 Southern States Energy Board -------------------------------------------------------------------- 259 2000-2001 Executive Committee ----------------------------------------------------------------- 261 Members of the Board ----------------------------------------------------------------------------- 263 2 Acknowledgments The Southern States Energy Board’s Legislative Digest is compiled each year in collaboration with member states and territories. We would like to thank the legislative research staff and state administrative officials and their staffs for assisting us in compiling and reviewing the Energy and Environment Legislative Digest 2001. Alabama North Carolina Terri L. Adams Sharon Stroud Mike Foster Richard Rogers Laura DeVivo Arkansas Chris Benson Oklahoma Mike Smith Florida Fenton Rood Wayne Kiger Alexander Mack South Carolina Reese Edwards Georgia John Clark James Thompson Tennessee Kentucky Greg Adkins Senator David Boswell Mark Mangeot Texas Frederic C. Warner, Jr. Louisiana Hall Bohlinger U.S. Virgin Islands Ann Coco Victor Somme, III Jim Marchand Virginia Maryland Stephen A. Walz Fred Hoover Kathy R. Frahm Paul Rosencrantz West Virginia Mississippi James Williams Michael Boyd Cindy Wilson Larry Richardson Missouri Leanne Chojnacki 3 4 Honorable Judy Hawley, Texas The Honorable Judy Hawley, member of the Texas House of Representatives, serves as vice-chair of the Southern States Energy Board. Representative Hawley has served in the Texas Legislature since 1994. This year, she serves as Vice-Chair of the Transportation Committee and as a member of the Energy Resource and House Administration Committees. She also represents Texas on the National Energy Council and serves on the Southern Legislative Conference Committee on Agriculture & Rural Development. She continues to serve as the Chair of the Rural Caucus of the Texas Legislature. Representative Hawley, a native of Kansas City, Missouri, graduated Cum Laude with Honors from Knox College. Introduction It is my privilege to present the Southern States Energy Board (SSEB) Energy and Environment Legislative Digest 2001, a compendium of representative energy and environmental quality measures enacted by the Board’s 18 member states and territories during the 2001 legislative sessions. Every year, SSEB makes an effort to ensure that the information included in the Digest accurately represents the year’s legislative trends. During this year’s legislative sessions, the southern states continued to focus on energy and environmental issues. Lawmakers enacted more than 600 bills pertaining to these matters. More than 400 measures addressed environmental issues and over 100 bills focused on energy issues. In the area of energy legislation, the restructuring of the electric utility industry continued to be a topic of considerable interest. Several states amended their existing laws relating to restructuring. Arkansas, for example, amended various sections of the Electric Consumer Choice Act of 1999. The new law extends the time period to begin retail electric generation competition to a future date that will be no earlier than October 1, 2003, and no later than October 1, 2005. The existing law called for competition to begin between January 1, 2002, and June 30, 2003. Similarly, lawmakers in Oklahoma removed the July 1, 2002, deadline for implementing and created the Electric Restructuring Advisory Committee. Consumer retail choice of electricity providers will not take place until the final report of the Advisory Committee has been submitted to the Governor and the Legislature, and legislation enabling electricity restructuring had been enacted. The Advisory Committee has a termination date of January 1, 2005. In Virginia, a new law concerning restructuring creates a mechanism for establishing the rates for default service after the capped rate period. Among other provisions, this act provides for competitive retail billing and metering. Other states focused on various utility issues. In Louisiana, a new law authorizes any domestic or foreign corporation, created for the purpose of transmitting or distributing electricity and steam, to expropriate needed property. Maryland lawmakers established a new approval process for the construction of on-site generating stations that generate less than 70 megawatts. These generating stations no longer are required to have a Certificate of Public Convenience and Necessity. Any electricity exported from these generating stations for sale may only be sold on the wholesale market 5 INTRODUCTION in accordance with an interconnection operation and maintenance agreement with the local electric company. A new law in Tennessee specifies that, in its role as a provider of natural gas and electrical power, an energy acquisition corporation has the power to provide necessary management services including technical, financial, engineering, promotional, and educational services related to its efforts to adequately, dependably and economically supply natural gas and electrical power to private persons and public or private entities. Additionally, Georgia amended the Georgia Cogeneration Act of 1979, renaming it the Georgia Cogeneration and Distributed Generation Act of 2001. The legislation provides for bi-directional metering, which entails measuring the amount of electricity supplied by an electric service provider and the amount fed back to the electric service provider by the customer’s distributed generation facility using the same meter. Furthermore, any person is allowed to operate a cogeneration facility and sell any excess electric energy to an electric supplier without being subject to regulation by the Public Service Commission (PSC). On the related topic of Natural Gas/Petroleum, two states addressed restructuring of the natural gas industry. Georgia lawmakers amended the Natural Gas Competition and Deregulation Act to allow consumers to switch providers once a year at no charge. In Tennessee, new legislation extends the special committee to study issues relating to natural gas distribution and deregulation of natural gas from February 1, 2001, until February 1, 2003. Relative to petroleum regulation, Alabama instituted new rules regarding the location of a petroleum product tank farm, its operation, and its chief operator. Petroleum product tank farms now must be located within five miles
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