May 6, 2015 | By Jaclyn Brandt

Numerous groups and politicians met this week and agreed on a plan to change the requirements for the state's Renewable Portfolio Standard (RPS). The meeting included Gov. Sam Brownback, members of the Kansas state legislature, and representatives from the wind industry.

The Spearville Wind Energy Facility near Spearville, Kansas. Credit: Jennifer L. Sovanski/Wikimedia Commons

The agreement would not remove the RPS from Kansas, but rather would make it optional as opposed to a mandate. Kansas's current RPS calls for utilities to produce or purchase 20 percent of the energy from renewable energy by 2020.

According to AWEA, 29 states currently have some sort of RPS. Seven of those states have RPS requirements of 25 percent or greater, which has spurred wind farm investment of more than $30 billion.

Jeffrey Clark, executive director of the Wind Coalition, told FierceEnergy that the agreement also removes a 4.3 percent excise tax on wind energy production from consideration -- "a proposal that has been promoted as a measure to help fill Kansas' $600 million budget shortfall." The agreement would also allow wind farms to be taxed as commercial property -- rather than their current definition of "utility." Current wind farms -- or those already being built -- will keep their exemption from property taxes.

"The RPS has been a tremendously successful policy for Kansas, which is why it was achieved four years early," Clark explained. "Through it, Kansas was able to diversify its energy mix, make itself more energy independent, and bringing substantial savings to electricity consumers. This was done with great benefit to the environment, and substantial water savings."

Clark said the Wind Coalition is happy with the agreement produced by the meeting.

"We are committed to growing renewable energy in Kansas and this agreement represents the best path toward," he told FierceEnergy. "As they expressed, this agreement has the support of the Governor and the legislature.  We appreciate their commitment to a stable and reliable business climate for wind energy and we look forward to continued growth."

A few states have recently discussed removing their RPS requirements, including Texas and North Carolina. Clark said it's important to remember that the United States, as well as Kansas, have been very supportive of energy development -- and an RPS is an important tool toward that goal. But it is not the only tool.

"Other tools are also important, including tax incentives and stable tax policy," Clark explained. "The Kansas wind energy resource is one of the best in the world. That combined with sound tax policy and a predictable business climate will keep Kansas competitive for investment. Tax policy in Kansas has also played a substantial role in the market's development. By addressing the market anxieties caused by uncertain tax policy in Kansas, this agreement allows wind energy investment and development to continue."

He added, "With sound tax policy we believe we can take renewable energy's market share in Kansas substantially higher."

Kansas's current RPS was signed into law in 2009 by then-Gov. Kathleen Sebelius just before she left to become President Obama's Secretary for Health and Human Services.

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http://www.fierceenergy.com/story/kansas-wants-make-renewable-portfolio-standard-optional/2015-05-06