Carbon tax on large utilities evaporates

 

Apr 7 - McClatchy-Tribune Regional News - David Klepper and Jim Sullinger The Kansas City Star, Mo.

Why should the state stop western Kansas from getting the cleanest coal plant in the state, when eastern Kansas enjoys the power from some of the state's dirtiest plants?

That was the question posed by lawmakers who supported Sunflower Electric Power Corp.'s plans to build two new state-of-the-art coal plants at Holcomb. After the expansion was blocked by a state regulator worried about carbon emissions, efforts to get the plant built anyway became the priority of many lawmakers this year.

Last week Rep. Clay Aurand, a Courtland Republican, suggested levying a carbon tax on large utilities whose coal-burning power plants emitted more carbon than average. The revenue would fund a tax break to the utility with the lowest carbon emissions.

Significantly, the only utility that would have faced a penalty is the Board of Public Utilities in Kansas City, Kan. It would have paid about $1 million because of its emissions.

Sunflower Electric would have received the money as a tax credit.

In a preliminary vote, the House endorsed the proposal 78-42 but defeated it 51-74 on a final vote Tuesday morning. The reversal came as many Republicans said they couldn't support a new tax.

Several, however, said the proposal accomplished its goal: reminding Democrats and moderate lawmakers from eastern Kansas that it was not easy being green when your voters may be asked to pay higher electric bills.

Plant expansion

As the legislative session wound down, Johnson County lawmakers were scrambling to find a few million dollars to lure to De Soto a $100 million plant expansion by Huhtamaki Americas.

An economic "impact" bill would allow the Kansas secretary of commerce to spend about $40 million on efforts to attract businesses and job expansion.

In its original form, the bill would allow the secretary to write a check to a company for expansion. A cost-conscious Senate stripped out that provision and only allowed bonding authority.

A competing House measure includes the cash provision. A final version probably won't emerge until the upcoming wrap-up session April 30.

The Finland-based company owns a packaging plant in De Soto, employing 440 people, as well as 10 other U.S. facilities.

Day care

Changing the rules that regulate day-care operations was proposed this session but appeared too complicated for lawmakers to digest.

Rep. Arlen Siegfreid, an Olathe Republican and chairman of the House Federal and State Affairs Committee, said the bill won't be considered this session.

The bill would have allowed day-care providers to take in more school-age children before and after school and on non-school days.

To reach David Klepper, call 785-354-1388 or send e-mail to dklepper@kcstar.com. To reach Jim Sullinger, call 785-354-1388 or send e-mail to jsullinger@kcstar.com.