Boston (Platts)--14Feb2008

The Kansas state Senate in a voice vote late Wednesday passed a bill that
would require the state's Secretary of Health and Environment to approve air
permits for any generation project that meets federal air quality standards.

A recorded vote on the bill (H.B. 2066) is expected to come later
Thursday and supporters are hoping the measure will pass with enough votes to
override a possible veto from Governor Kathleen Sebelius.

The measure would revive a plan by Sunflower Electric Power, a generation
and transmission cooperative, to build two 700-MW coal plants at its Holcomb
power station in western Kansas.

Secretary of Health and Environment Roderick Bremby in October denied the
project an air permit, citing concern that the carbon dioxide emissions from
the plants would worsen global warming. The US government does not consider
CO2 to be a pollutant.

The Kansas House is considering a similar bill that would also include
language requiring state utilities to obtain a certain percentage of their
generation needs from renewable resources. The measure also would permit
utilities to obtain an extra 1% return on renewable investments.

The renewable portfolio standard would require utilities to obtain 10% of
their power from renewable resources by 2010. That requirement would rise to
25% by 2025. The House is expected to take up its bill on Monday.