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Session of 2026
SENATE BILL No. 417
By Committee on Utilities
1-28
AN ACT concerning energy; relating to certain electric generation and
energy storage facilities; establishing requirements for the
development, construction, modification, operation, maintenance and
decommissioning of industrial wind and solar energy conversion
systems and industrial battery energy storage systems; authorizing the
board of county commissioners of a county to permit or deny the
construction of such industrial energy facilities; establishing a protest
petition and election process to contest such county action; providing
jurisdiction to the state corporation commission to control and permit
the development, construction, modification, operation, maintenance
and decommissioning of such facilities; requiring the commission to
approve and issue a permit prior to the new construction or expansion
of any such facility; requiring owners of existing industrial energy
facilities to register with the commission; establishing minimum
setback distances for such facilities; requiring the commission to adopt
a code of conduct and agricultural mitigation protocols; requiring a
facility owner to establish and maintain a decommission plan and
provide adequate financial assurance for the decommissioning;
authorizing the commission to issue certain orders and impose civil
penalties for violations; authorizing the commission to adopt rules and
regulations.
Be it enacted by the Legislature of the State of Kansas:
Section 1. The legislature hereby finds and declares that:
(a) The development of industrial energy facilities in Kansas
significantly affects the welfare of the population, the environmental
quality, the aesthetic quality, the location and growth of agricultural,
industrial and commercial activities and the use of the state's natural
resources;
(b) the development of industrial energy facilities within the state
should be regulated to promote the reasonable, orderly and effective
development of such facilities; and
(c) the development, construction, modification, maintenance,
operation and decommissioning of industrial energy facilities are matters
of both statewide and local concern and interest.
Sec. 2. As used in sections 1 through 12, and amendments thereto:
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(a) "Cessation of operations" means an industrial energy facility or
generating or storage unit thereof has not produced or discharged electrical
energy for a period of 12 months, except that such 12-month period shall
not include any period in which the: (1) Project fails to produce or
discharge electrical energy due to an event of force majeure; or (2) owner
of the industrial energy facility has retained legal control of the project's
footprint and has commenced rebuilding the facility.
(b) "Commission" means the state corporation commission.
(c) "Expansion" means any:
(1) New addition to an existing industrial energy facility that
increases the site area or physical footprint of such facility or, in the case
of an industrial wind energy conversion system:
(A) Construction of a new wind turbine; or
(B) activity that increases to the total tower height of a wind turbine
as measured from ground level to the blade tip; or
(2) repowering of an existing industrial energy facility.
(d) "Full and complete decommissioning" means, commencing upon
the cessation of operations of an industrial energy facility:
(1) The removal and proper disposal of all generating units or energy
storage units and all appurtenant facilities and equipment of the industrial
energy facility, including, but not limited to, the foundations, support
structures, electric lines, electric and electronic devices, energy storage
facilities and fencing; and
(2) the return and restoration of any land disturbed or changed as a
result of the construction and operation of the industrial energy facility to
the useful condition that existed prior to the construction and operation of
the facility.
(e) "Industrial battery energy storage system" means an
electrochemical or thermal device or system of devices that are capable of
absorbing and storing electrical or thermal energy and discharging such
energy at a later time to provide for the discharge or production of one
megawatt-hour or more of electrical energy. "Industrial battery energy
storage system" includes any appurtenant facilities and equipment of an
industrial battery energy storage system.
(f) "Industrial energy facility" means any:
(1) Industrial battery energy storage system;
(2) industrial solar energy conversion system; or
(3) industrial wind energy conversion system.
(g) "Industrial energy facility owner" means any person or entity that:
(1) Has a direct ownership interest in an industrial energy facility
regardless of whether the person or entity is involved in acquiring the
necessary rights, permits and approvals or planning for the construction
and operation of the facility; or
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(2) is acting as the developer or operator of an industrial energy
facility by acquiring the necessary rights, permits and approvals or
planning for the construction and operation of the facility, regardless of
whether the person or entity will directly own or operate the facility.
(h) "Industrial solar energy conversion system" means any device or
assembly of devices and supporting facilities that are used to convert
sunlight into electrical energy for the primary purpose of storage and
wholesale sales of generated electricity and has a total system-rated or
nameplate generating capacity of one megawatt or more. "Industrial solar
energy conversion system" includes any appurtenant facilities and
equipment of an industrial solar energy conversion system.
(i) "Industrial wind energy conversion system" means any device or
assembly of devices and supporting facilities that utilize wind energy to
generate electricity for the primary purpose of storage and wholesale sales
of generated electricity and has a total system-rated or nameplate
generating capacity of one megawatt or more. "Industrial wind energy
conversion system" includes any appurtenant facilities and equipment of
an industrial wind energy conversion system.
(j) "Nonparticipating property" means any parcel of real property that
is adjacent to a parcel of real property for which a landowner has entered
into a lease or easement agreement to authorize the construction and
operation of an industrial energy facility on such property, and the
landowner of such nonparticipating property has not entered into any such
lease or easement agreement relating to such facility.
(k) "Partial decommissioning" means, commencing upon the
cessation of operations of an individual generating unit or energy storage
unit of an industrial energy facility:
(1) The removal and proper disposal of all generating units or energy
storage units and all appurtenant facilities and equipment of the industrial
energy facility, including, but not limited to, the foundations, support
structures, electric lines, electric and electronic devices, energy storage
facilities and fencing; and
(2) the return and restoration of any land disturbed or changed as a
result of the construction and operation of the industrial energy facility to
the useful condition that existed prior to the construction and operation of
the facility.
(l) "Repowering" means any construction activities to completely or
partially dismantle, upgrade and replace equipment at an industrial energy
facility that results in an increase to the facility's energy generation output
or energy storage potential. "Repowering" does not include routine
maintenance or replacement of malfunctioning equipment or components.
Sec. 3. (a) On and after July 1, 2026, the board of county
commissioners, by resolution, may permit or deny the construction of an
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industrial energy facility within the county. Such resolution shall be
published once each week for two consecutive weeks in a newspaper of
general circulation in the county. The resolution shall take effect 60 days
after final publication unless a valid protest petition, signed by not less
than 5% of the qualified electors of the county, is filed with the county
election officer within 60 days of the final publication of the resolution.
(b) Notwithstanding the provisions of subsection (a), the qualified
electors of a county may file a petition to the board of county
commissioners of a county requesting an election to permit or deny the
construction of an industrial energy facility within the county. Such
petition shall be signed by not less than 5% of the qualified electors of the
county.
(c) The following statement shall appear on a petition filed pursuant
to subsection (a) or (b):
"We request an election to determine whether an industrial energy
facility owner shall be allowed, either directly or indirectly, to own,
acquire or otherwise obtain or lease any agricultural or other land for the
purpose of constructing an industrial energy facility in _______ county."
(d) If a valid petition is filed pursuant to subsection (a) or (b), the
county election officer shall submit the following question to the qualified
electors of the county at the next state, county or special election:
"Shall an industrial energy facility owner be allowed, either directly or
indirectly, to own, acquire or otherwise obtain or lease any agricultural or
other land for the purpose of constructing an industrial energy facility in
________ county?"
(e) If a majority of the votes cast and counted are in opposition to
allowing an industrial energy facility to be constructed in such county, an
industrial energy facility shall not be constructed in such county. The
county election officer shall transmit a copy of the result of such election
to the secretary of state, who shall publish such result in the Kansas
register with a statement that an industrial energy facility shall not be
constructed in such county.
(f) If a majority of the votes cast and counted are in favor of allowing
an industrial energy facility to be constructed in such county, an industrial
energy facility may be constructed in such county subject to all federal and
state laws and rules and regulations, local ordinances or resolutions,
enforceable land use restrictions and the terms or conditions of any
agreement that pertains to an industrial energy facility. The county election
officer shall transmit a copy of the result of such election to the secretary
of state, who shall publish such result in the Kansas register with a
statement that an industrial energy facility may be constructed in such
county.
(g) The election provided for by this section shall be conducted, and
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the votes counted and canvassed, in the manner provided by law for
question submitted elections of the county.
(h) No election conducted pursuant to this section shall be applied or
construed to prohibit the development, construction, modification,
operation, maintenance or decommissioning of any industrial energy
facility that was:
(1) Constructed on or before July 1, 2026; or
(2) authorized to be constructed by the board of county
commissioners prior to July 1, 2026, through:
(A) The issuance of a building, zoning or development permit that
authorizes the construction of the facility pursuant to zoning regulations;
(B) the issuance of a conditional or special use permit that authorizes
the construction of the facility notwithstanding zoning regulations; or
(C) the execution of a contractual agreement between the county and
the industrial energy facility owner that establishes terms, conditions,
rights and remedies relating to the development and construction of such
industrial energy facility within the county.
Sec. 4. (a) Except as otherwise provided in this section, the state
corporation commission is given full power, authority and jurisdiction to
supervise and control the development, construction, modification,
operation, maintenance and decommissioning of industrial energy facilities
in this state. The commission shall have continuing jurisdiction over the
development, construction, operation, maintenance and decommissioning
of any industrial energy facility permitted by the commission pursuant to
section 5, and amendments thereto.
(b) Nothing in this act shall preempt or prohibit:
(1) Any county or city from adopting or implementing planning and
land use laws, ordinances, resolutions and regulations pursuant to K.S.A.
12-741 et seq., and amendments thereto, that are more restrictive than the
provisions of this act, or any rules and regulations adopted thereunder, for
the protection of public health, safety and welfare;
(2) any county or city from requiring an industrial energy facility
owner to enter into a separate agreement with such county or city that
imposes terms and conditions that are more restrictive than the provisions
of this act, or any rules and regulations adopted thereunder, for the
protection of public health, safety and welfare; or
(3) the enforceability and operation of any terms and conditions of
any written lease or easement agreement between a landowner and an
industrial energy facility owner that are more restrictive than the
provisions of this act, or any rules and regulations adopted thereunder.
Sec. 5. (a) On and after July 1, 2026, no person or entity shall,
without first obtaining a permit from the commission in accordance with
this section, begin site preparation for or construction of a new industrial
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energy facility or proceed with an expansion to an existing industrial
energy facility. Whenever any person or entity seeks to obtain such a
permit, the person or entity shall file an application with the commission
that provides:
(1) The name, address and contact information of the applicant;
(2) a description of the nature, purpose and location of the facility or
expansion thereof;
(3) a statement of the reasons for the selection of the proposed
location of the facility or expansion thereof;
(4) the estimated date that construction will commence and the
estimated duration of construction;
(5) a site plan of the proposed industrial energy facility or expansion
thereof;
(6) the names and addresses of the landowners of record whose land
or interest therein is proposed to be acquired for the industrial energy
facility or expansion thereof;
(7) a narrative including how any noise, soil erosion, dust, water
quality, safety issues and fire risks will be addressed by the applicant;
(8) a description of the proposed decommissioning plan for the
facility, which shall comply with the provisions of section 9, and
amendments thereto; and
(9) any other information as may be required by the commission.
(b) An applicant shall have the burden of proof to establish by a
preponderance of evidence that the development, construction,
modification, operation, maintenance and decommissioning of the
proposed facility will:
(1) Comply with all applicable laws and rules and regulations and
orders of the commission;
(2) comply with the minimum setback distances established pursuant
to section 7, and amendments thereto, or any more restrictive setback
distances imposed pursuant to any local planning and land use laws,
ordinances, regulations or agreements that establish more restrictive
setback distances relating to such facility;
(3) comply with the code of conduct and agricultural mitigation
protocols established pursuant to section 8, and amendments thereto;
(4) comply with the decommissioning requirements established
pursuant to section 9, and amendments thereto, or any more restrictive
decommissioning requirements established by the commission;
(5) not pose a threat of serious injury to the environment or to the
social and economic condition of any person who resides within or near
the proposed location of the facility;
(6) not substantially impair the health, safety or welfare of
inhabitants; and
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(7) not be located in a county that prohibits the construction of an
industrial energy facility pursuant to section 3, and amendments thereto.
(c) Prior to filing a permit application pursuant to this section, a
prospective applicant shall file with the commission a notification of intent
to file such application not less than 60 days prior to filing such
application.
(d) Upon the filing of a permit application, the commission shall hold
a public hearing on such application, which shall not be more than 90 days
after the date that the application was filed, to determine whether the
application and the proposed activities that will be conducted by the
applicant comply with the requirements of this act and any rules and
regulations adopted thereunder. The commission shall hold the public
hearing in the county where the industrial energy facility or a majority of
the industrial energy facility is proposed to be located.
(e) (1) The commission shall publish a notice of the time, place and
subject matter of the public hearing as follows:
(A) On the commission's website, for not less than the 30 days prior
to the public hearing; and
(B) in a newspaper of general circulation in the county where the
industrial energy facility is proposed to be located, once each week for two
consecutive weeks, the last publication of which shall not be less than five
days before the public hearing.
(2) The commission shall provide written notice by certified mail of
the public hearing to all landowners described in subsection (a)(6). Such
written notice shall be postmarked not later than 20 days prior to the
hearing date.
(f) The commission shall conduct an evidentiary hearing on a permit
application filed pursuant to this section at such time and place as the
commission deems appropriate. All such hearings shall be in accordance
with the provisions of the Kansas administrative procedure act and
completed within 30 days after the commencement thereof.
(g) The commission shall establish a permit application fee that is
sufficient to compensate the commission for the actual cost of providing
the notices required by this section and to investigate, review, hear and
process the application. The commission shall remit all moneys received
by the commission pursuant to this section to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury and credit such amount to
the public service regulation fund.
(h) The commission shall issue a final order upon a permit
application and render a decision with respect to whether the application
and the proposed activities that will be conducted by the applicant will
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SB 417 8
comply with the requirements of this act and any rules and regulations
adopted thereunder compliance with the location of the proposed industrial
energy facility. In addition to legal compliance, the commission may
consider the impacts and benefits to Kansas residents, the affected county
or counties, energy consumers in Kansas, energy consumers in other states
and economic development.
(i) The commission shall have authority to:
(1) Order and enforce any additional or more restrictive terms and
conditions as the commission may deem just and reasonable to best protect
the rights of any interested party or those of the local inhabitants or general
public. Such additional or more restrictive terms and conditions may relate
to the development, construction, modification, operation, maintenance or
decommissioning of the industrial energy facility; and
(2) verify compliance with and enforce global or nationally
recognized standards and technical specifications for the development,
construction, modification, operation, maintenance or decommissioning of
an industrial energy facility.
(j) The commission shall issue a final order on the permit application
within 180 days after the date that the application was filed.
(k) (1) An initial permit shall not be required for any industrial energy
facility that was:
(A) Constructed on or before July 1, 2026; or
(B) authorized to be constructed by a board of county commissioners
prior to July 1, 2026, through:
(i) The issuance of a building, zoning or development permit that
authorizes the construction of the facility pursuant to zoning regulations;
(ii) the issuance of a conditional or special use permit that authorizes
the construction of the facility notwithstanding zoning regulations; or
(iii) the execution of a contractual agreement between the county and
the industrial energy facility owner that establishes terms, conditions,
rights and remedies relating to the development and construction of such
industrial energy facility within the county.
(2) A permit shall be required for any industrial energy facility
specified in this subsection prior to any site preparation for or construction
of any new expansion of any such industrial energy facility.
(l) Any permit application, documents submitted to the commission
in relation thereto and orders of the commission relating to such permit
shall be a public record and disclosed upon request.
Sec. 6. (a) Any industrial energy facility owner of an industrial energy
facility that is not required to obtain an initial permit pursuant to section
5(k), and amendments thereto, shall register such facility with the
commission by filing an initial facility registration statement to the
commission. Such initial facility registration statement shall be filed on or
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before December 31, 2026, and include the following:
(1) The name, address and contact information of the registrant;
(2) a description of the nature, purpose and location of the facility;
(3) the current site layout and detailed footprint of the industrial
energy facility;
(4) the names and addresses of the landowners of record whose land
or interest therein has been acquired for the industrial energy facility;
(5) a description of the decommissioning plan that is established for
such facility pursuant to section 9, and amendments thereto; and
(6) any other information as may be required by the commission.
(b) The commission shall require an industrial energy facility owner
to file an updated and current facility registration statement not less than
once every five years following the issuance of any permit pursuant to
section 5, and amendments thereto, or the filing of an initial registration
statement pursuant to subsection (a). Such updated and current facility
registration statement shall include the following information:
(1) The name, address and contact information of the registrant;
(2) a description of the nature, purpose and location of the facility;
(3) the current site area and detailed footprint of the industrial energy
facility;
(4) the names and addresses of the landowners of record whose land
or interest therein has been acquired for the industrial energy facility;
(5) written assurance that the site area and footprint of the industrial
energy facility has not been modified from the site area or footprint that
was last approved by the commission pursuant to any permit issued for the
facility pursuant to section 5, and amendments thereto, or shown on the
facility registration statement provided to the commission pursuant to this
section;
(6) a description of the decommissioning plan that is established for
such facility pursuant to section 9, and amendments thereto; and
(7) any other information as may be required by the commission.
(c) The commission shall establish a facility registration statement fee
that is sufficient to compensate the commission for the actual cost to
investigate, review and process the facility registration statement. The
commission shall remit all moneys received by the commission pursuant
to this section to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury and credit such amount to the public service regulation fund.
(d) Any facility registration statement and documents submitted to
the commission in relation thereto shall be a public record and disclosed
upon request.
Sec. 7. (a) Any new industrial energy facility or expansion of an
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SB 417 10
existing industrial energy facility shall meet or exceed the setback
distances established pursuant to this section.
(b) For a new industrial wind energy facility or expansion of an
existing industrial wind energy facility that includes the siting and
construction of any new wind turbine, no such wind turbine shall be
located closer than any of the following distances, as measured from the
ground-level center of the turbine:
(1) 1.1 times the maximum blade tip height of the turbine to the
nearest boundary of a public road right-of-way;
(2) 1.1 times the maximum blade tip height of the turbine to the
nearest boundary of a nonparticipating property;
(3) 4.0 times the maximum blade tip height to the nearest point on the
outside wall of any habitable dwelling, church, school, adult care home,
medical care facility, child care facility, library, community center, public
building, office building, confined feeding facility or licensed food service
or lodging establishment; and
(4) 5280 feet to the nearest boundary of any state park, state lake,
wildlife management area or wildlife refuge as defined in K.S.A. 65-171d,
and amendments thereto.
(c) For a new industrial solar energy conversion system or expansion
of an existing industrial solar energy conversion system, no part of the site
area or footprint of any such system shall be located closer than the
following distances, as measured from the nearest outside boundary of
such site area:
(1) 50 feet from the nearest public road right-of-way;
(2) 50 feet from the nearest boundary of a nonparticipating property;
and
(3) 300 feet from the nearest point on the outside wall of any
habitable dwelling, church, school, adult care home, medical care facility,
child care facility, library, community center, public building, office
building, confined feeding facility or licensed food service or lodging
establishment.
(d) For a new industrial battery energy storage system or expansion
of an existing industrial battery energy storage system, no such part of the
site area or footprint of such system shall be located closer than the
following distances, as measured from the nearest outside boundary of
such site area:
(1) 50 feet from the nearest public road right-of-way;
(2) 50 feet from the nearest boundary of a nonparticipating property;
and
(3) 300 feet from the nearest point on the outside wall of any
habitable dwelling, church, school, adult care home, medical care facility,
child care facility, library, community center, public building, office
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building, confined feeding facility or licensed food service or lodging
establishment.
(e) Nothing in this section shall prohibit the establishment, operation
or enforcement of more restrictive setback distances pursuant to:
(1) Any planning and land use laws and regulations adopted by a city
or county pursuant to K.S.A. 12-741 et seq., and amendments thereto;
(2) an agreement between a county or city and an industrial energy
facility owner;
(3) an agreement between a landowner and an industrial energy
facility owner; or
(4) an order of the commission in any permit proceeding under
section 5, and amendments thereto.
(f) The setback distance requirements established pursuant to this
section shall not apply with respect to any particular structure listed in this
section if the industrial energy facility owner obtains a written agreement
from the owner of any such structure that is within such setback distance
stating that such owner is aware of the construction or expansion, has no
objections to such construction or expansion and authorizing the
construction or expansion within such setback distance. Any such written
agreement shall be filed in the register of deeds office of the county where
the structure that such agreement pertains is located.
Sec. 8. (a) The commission shall establish a code of conduct for the
development, construction, modification, operation, maintenance and
decommissioning of industrial energy facilities. The code of conduct shall,
at a minimum, contain provisions that require each industrial energy
facility owner to:
(1) Be truthful and honest in all communications with landowners;
(2) be transparent about the industrial energy facility project;
(3) provide appropriate contact information for the industrial energy
facility owner and any employees, agents, contractors, subcontractors or
assigns thereof that are associated with the project;
(4) ensure that all communications with landowners do not contain
any threat or coercion;
(5) vacate the property of or cease communications by the request of
any landowner who requests that the industrial energy facility owner, or
any employees, agents, contractors, subcontractors or assigns thereof,
vacate the landowner's property or cease communications with the
landowner;
(6) not disclose communications from a landowner unless otherwise
agreed in writing;
(7) provide and make accessible project maps to the public during the
permitting process;
(8) compensate landowners for any and all damages to land and
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SB 417 12
agricultural operations resulting from the development, construction,
operation or decommissioning of the project and establish procedures to
determine and calculate compensation for such damages;
(9) remediate communication circuits that are diminished or disrupted
due to communication interference caused by the project; and
(10) indemnify and hold harmless any affected landowner or tenant,
and any heirs, successors, legal representatives or assigns thereof, from
any and all liability associated with the development, construction,
modification, operation, maintenance or decommissioning of the industrial
energy facility, unless such liability arises from the intentional or willful
acts of the indemnitee.
(b) The commission, after consultation with the Kansas department of
agriculture, shall establish agricultural impact mitigation protocols that
shall apply with respect to the development, construction, operation,
maintenance and decommissioning of industrial energy facilities. The
agricultural impact mitigation protocols shall contain, at a minimum,
provisions that require each industrial energy facility owner to:
(1) Provide advance notice to and coordinate with any landowner or
tenant whenever the industrial energy facility owner needs to access
private property;
(2) designate for the industrial energy facility owner one or more
contacts who have experience in agriculture and may be contacted when
any agricultural impact mitigation work is not sufficient;
(3) establish standards for facilities and support structures to
minimize the impact to agricultural land and operations;
(4) establish procedures to mitigate and address any impacts to
important agricultural improvements caused by the project, including, but
not limited to, impacts to drainage tiles, terraces and irrigation systems and
lightning and stray voltage mitigation measures;
(5) establish soil protection measures, including, but not limited to,
decompaction, fertilization, stabilization, repairs to damaged soil, erosion
prevention and removal of construction debris;
(6) establish soil restoration measures that shall apply following
construction, operational and decommissioning activities, including, but
not limited to, segregation and replacement of topsoil and reestablishment
of the vegetative growth that existed prior to disturbance;
(7) adhere to scientific standards for all agricultural impact mitigation
work, such as the standards established by the natural resources
conservation service, the United States department of agriculture farm
service agency, agricultural extension offices or land grant universities;
(8) establish procedures for installation and maintenance of any
necessary gates to the facility or facility structures;
(9) for any project involving the construction of overhead
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SB 417 13
transmission or generation tie lines, construct such lines with an adequate
line height to ensure that any existing agricultural operations may continue
under and around such line in a safe manner;
(10) establish procedures for tree and brush removal, including, but
not limited to, compensation for removal of trees with commercial value;
and
(11) establish procedures for controlling noxious weeds and other
growth within any lease or easement.
Sec. 9. (a) Each industrial energy facility owner in this state,
including any industrial energy facility owner that obtains a permit
pursuant to section 5, and amendments thereto, or registers with the
commission pursuant to section 6, and amendments thereto, shall be
responsible for the full and complete decommissioning or partial
decommissioning of an industrial energy facility in accordance with this
section.
(b) (1) An industrial energy facility owner shall, upon the cessation of
operations of the industrial energy facility, provide for the full and
complete decommissioning of the industrial energy facility. The industrial
energy facility owner shall complete the full and complete
decommissioning of any such facility not later than one year following the
date of such cessation of operations.
(2) An industrial energy facility owner shall, upon the cessation of
operations of any individual generating unit or energy storage unit of an
industrial energy facility, provide for the partial decommissioning of the
industrial energy facility. The industrial energy facility owner shall
complete the partial decommissioning not later than one year following the
date of such cessation of operations.
(c) The commission shall require each such industrial energy facility
owner to establish and maintain a sufficient, efficient and enforceable
decommissioning plan for the facility to ensure the full and complete or
partial decommissioning of the facility upon the cessation of operations of
the facility or any part thereof. Any such decommissioning plan and
updates thereto shall be prepared, signed and sealed by a professional
engineer who is licensed to practice in Kansas. Each industrial energy
facility owner shall provide to the commission a decommissioning plan
that contains the following information:
(1) The name, address and contact information for the industrial
energy facility owner and the name, address and contact information of
each landowner that owns property where the industrial energy facility is
located;
(2) a narrative that describes the planned sequence for the
decommissioning and a schedule for the completion of decommissioning;
(3) a description of whether the decommissioned materials will be
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SB 417 14
disposed of, reused or recycled;
(4) a description of how the disposal of solid or hazardous wastes will
be permitted and accomplished;
(5) a description of the materials that may be subject to salvage,
including the estimated salvage value of such materials;
(6) a narrative that describes the steps that will be taken to return and
restore any land disturbed or changed as a result of the construction and
operation of the facility to the useful condition that existed prior to the
construction and operation of the facility;
(7) a cost estimate for the full and complete decommissioning of the
industrial energy facility in accordance with this section;
(8) a description of the financial assurance mechanism that the
industrial energy facility owner shall maintain to comply with the financial
assurance requirements of this section; and
(9) any other information determined necessary by the commission.
(d) The commission shall require and order an industrial energy
facility owner to establish and maintain financial assurance in a form and
amount that is sufficient to implement the decommissioning plan for the
industrial energy facility. The industrial energy facility owner shall provide
the financial assurance in an amount determined as necessary by the
commission in the form of an irrevocable standby letter of credit,
performance bond, surety bond or unconditional payment guarantee
executed by the parent company of the facility owner. The financial
assurance shall at all times be accessible by the commission to provide for
the decommissioning of the industrial energy facility should the owner not
be financially able to complete the decommissioning.
(e) The commission shall require each industrial energy facility
owner to provide to the commission not less than once every five years:
(1) An updated estimate of the cost to decommission the facility; and
(2) documentation that the financial assurance maintained by the
industrial energy facility owner is sufficient to cover such cost.
(f) Nothing in this section shall prohibit the establishment, operation
or enforcement of more restrictive decommissioning requirements
pursuant to:
(1) Any planning and land use laws and regulations adopted by a city
or county pursuant to K.S.A. 12-741 et seq., and amendments thereto;
(2) an agreement between a county or city and an industrial energy
facility owner;
(3) an agreement between a landowner and an industrial energy
facility owner; or
(4) an order of the commission in any permit proceeding under
section 5, and amendments thereto.
Sec. 10. (a) If the commission finds that any industrial energy facility
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owner has violated the provisions of this act, any rules and regulations
adopted by the commission or any permit or order of the commission, in
addition to any other penalties imposed by law, the commission may:
(1) Issue a cease and desist order; or
(2) impose a civil penalty not to exceed $10,000 per violation. Such
penalty shall constitute an actual and substantial economic deterrent to the
violation for which the penalty is assessed. In the case of a continuing
violation, the commission may deem every day that such violation
continues as a separate violation.
(b) No cease and desist order or civil penalty shall be imposed
pursuant to this section except upon the written order of the commission to
the industrial energy facility owner who committed the violation. The
order shall state the violation, the penalty imposed and the right to appeal
such order to the commission. Any such facility owner, within 30 days
after service of such order, may make written request to the commission
for a hearing. The commission shall conduct a hearing in accordance with
the provisions of the Kansas administrative procedure act within 30 days
following the receipt of such request.
(c) The commission may order an industrial energy facility owner to
pay any costs and reasonable attorney fees incurred by the commission for
any action brought by the commission pursuant to this section. The
commission may collect interest on any portion of any penalty, costs and
attorney fees that remain unpaid for more than 30 days after the
assessment of the penalty, at the rate provided by K.S.A. 16-204, and
amendments thereto, for interest on judgments.
(d) All moneys received by the commission from penalties imposed
and costs and attorney fees assessed pursuant to this section shall be
remitted to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury to
the credit of the public service regulation fund.
Sec. 11. (a) Any order of the commission established pursuant to this
act is subject to review in accordance with the Kansas judicial review act.
(b) No cause of action arising out of any order of the commission
established pursuant to this act shall accrue in any court to any party,
unless such party shall have petitioned for reconsideration in accordance
with the provisions of K.S.A. 77-529, and amendments thereto.
Sec. 12. The commission may adopt rules and regulations to
administer and enforce the provisions of this act.
Sec. 13. This act shall take effect and be in force from and after its
publication in the statute book.
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