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22LSO-0357
2022
STATE OF WYOMING
22LSO-0357
Numbered
2.0
SENATE FILE NO. SF0064
Carbon capture and sequestration.
Sponsored by: Senator(s) Scott and Representative(s) Clausen, Neiman, Olsen and Zwonitzer
A BILL
for
AN ACT relating to public utilities; specifying requirements for public utilities for the consideration and installation of carbon capture, utilization and storage technology at coal-fired electric generation facilities; specifying procedures and exceptions to the carbon capture requirements; amending requirements related to low-carbon electricity production standards; requiring reports; specifying additional duties for the public service commission; specifying a sunset date for carbon capture requirements; making conforming amendments; requiring rulemaking; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 37
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3
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119 is created to read:
37
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3
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119.
Retiring electric generation facilities; carbon capture requirements.
(a)
As used in this section:
(i)
"Carbon capture, utilization and storage technology" means as defined by W.S. 37
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18
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101(a)(i);
(ii)
"Coal
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fired electric generation facility" means a facility or unit that utilizes coal for the production of electricity and that has a rated capacity equal to or greater than two hundred (200) megawatts;
(iii)
"Retirement" or "retired" means as defined by W.S. 37
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2
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134(a)(ii).
(b)
Each public utility shall consider including carbon capture, utilization and storage technology in their generation resource mix.
(c)
Any public utility that has notified the public service commission in an integrated resource plan or other submission before April 1, 2022 that the public utility intends to retire any coal
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fired electric generation facility or unit thereof shall be subject to the following:
(i)
The public utility may elect to continue to operate the facility or unit by installing carbon capture, utilization and storage technology provided that the costs of installation are allowed to be uniformly included in the rates of all customers of the public utility or if the net costs, if any, will not be included in the rates of any of the public utility's customers;
(ii)
The public utility may elect to have a third party install, or cause to be installed, and operate carbon capture, utilization and storage technology at the facility or unit, provided that:
(A)
The third party shall be responsible for the direct costs of installation; and
(B)
The planned retirement may be delayed upon agreement by the third party and the public utility. If approval for delaying the retirement is required by statute or rule, any requested delay shall be approved unless the delay would be harmful to Wyoming electric ratepayers and the delay would not be in the public interest.
(iii)
A public utility that does not elect to proceed under paragraphs (i) or (ii) of this subsection shall comply with the requirements to make efforts to sell the facility or unit in accordance with W.S. 37
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117 and 37
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133 and shall offer to sell the facility or unit to one (1) or more persons who intend to install and operate carbon capture, utilization and storage technology within a reasonable time. In addition to any requirements required of a public utility in W.S. 37
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133, the public utility shall, subject to commission directives if the parties do not agree, purchase electricity generated at the facility or unit from the purchaser of the facility or unit in approximately the same volume that was utilized by the
public utility at the facility or unit in the immediately preceding three (3) years before the sale and at a rate subject to law and commission approval. The commission may approve a rate change for electricity purchased under this paragraph to ensure that the rate is just and equitable and that the rate does not unreasonably burden customers. The marginal costs of any installed carbon capture, utilization and storage technology shall be borne by the purchaser of the facility or unit.
(d)
For a public utility retiring multiple units, the commission may waive the requirements for subsection (c) of this section for any remaining units if construction has commenced on carbon capture, utilization and storage technology for operation for at least one (1) unit and the commission has adequate evidence that the construction will be completed and the technology will be operated at one (1) or more units. If, before commencement of construction as provided in paragraph (i) of this subsection, the public utility has received a credible proposal to install and operate carbon capture, utilization and storage technology on at least one (1) additional unit, the commission shall
not waive the requirements of subsection (c) of this section for that additional unit.
(e)
For facilities and units for which a public utility has not notified the commission before April 1, 2022 that it plans to retire, each public utility shall, on or before December 31, 2022 and again on or before December 31, 2024, report to the commission on:
(i)
The public utility's views on the prospects of installing and operating carbon capture, utilization and storage technology on each facility and unit specified in this subsection;
(ii)
Whether soliciting proposals for the installation of carbon capture, utilization and storage technology on each facility or unit would be beneficial;
(iii)
Whether the public utility has received any credible proposals for installing carbon capture, utilization and storage technology.
(f)
Not later than July 1, 2022, the commission shall publish and thereafter regularly update on its website a list of all coal
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fired electric generation facilities or units for which a public utility has notified the commission of the facility's or unit's planned retirement. The list shall include contact information for appropriate staff at the commission and for each public utility with a facility or unit for which notice of retirement has been given. Any person interested in installing and operating carbon capture, utilization and storage technology at any facility or unit included in the list required by this subsection may notify and apply to the commission and the applicable public utility and may submit any information or proposal the person has developed for the facility or unit. Upon receiving a notification of interest and application from a person under this subsection, the commission shall, upon request of any party, hold a hearing within a reasonable time on whether to require the proposed installation and operation of carbon capture, utilization and storage technology at the facility or unit. After the hearing and opportunity for public comment, the commission shall make a decision on the application and shall consider
the public interest, any effect on customers, the person's ability to install and operate carbon capture, utilization and storage technology, the parties involved in the application, the effect on the economy in Wyoming, potential tax revenue to be generated from the proposed installation, including severance and ad valorem taxes from minerals likely to be produced through use of captured carbon dioxide, and any other factor deemed relevant by the commission.
(g)
Except as provided in W.S. 37
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102(f), nothing in this section shall be construed to exempt any public utility from the requirements of W.S. 37
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101 and 37
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102.
(h)
This section shall not apply to any coal
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fired electric generation facility or unit for which the public utility has notified the commission of the facility's or unit's retirement on and after June 30, 2027, provided that the public utility has complied with all applicable laws and rules governing notice of planned facility and unit retirements.
Section 2.
W.S. 37
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101(a)(vi)(N), 37
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133(a), 37
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117(a) by creating a new paragraph (ii) and by amending and renumbering (ii) as (iii) and 37
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102(a)(intro) and by creating a new subsection (f) are amended to read:
37
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1
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101.
Definitions.
(a)
As used in chapters 1, 2, 3, 12, 17 and 18 of this title:
(vi)
"Public utility" means and includes every person that owns, operates, leases, controls or has power to operate, lease or control:
(N)
The provisions of W.S.
37
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119,
37
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101 and 37
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102 shall not apply to any public utility owned or operated by a municipality or any cooperative electrical generation and transmission association operating in interstate commerce whose rates are not regulated by the Wyoming public service commission.
37
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2
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133.
Exemption for purchase of coal-fired generation facilities that would otherwise have been retired; public utility purchase requirements; conditions for exemption.
(a)
Except as otherwise provided in this section
and in W.S. 37
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119(c)(iii)
, the provisions of this chapter and chapters 1 and 3 of this title shall not apply to a person who operates a coal fired electric generation facility purchased under an agreement approved by the commission under W.S. 37
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117.
37
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3
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117.
Limitation for recovery of costs associated with electric generation built to replace retiring coal-fired generation facility.
(a)
Notwithstanding any other provision of this chapter:
(ii)
In addition to the requirements of paragraph (i) of this subsection, any electric public
utility seeking to retire a coal
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fired electric generation facility shall make a good faith effort to sell the facility to a person who would install and operate carbon capture, utilization and storage technology at the facility;
(ii)
(iii)
The rates charged by an electric public utility, other than a cooperative electric utility, shall not include any recovery of or earnings on the capital costs associated with new electric generation facilities built, in whole or in part, to replace the electricity generated from one (1) or more coal fired electric generating facilities located in Wyoming and retired on or after January 1, 2022, unless the commission has determined that the public utility that owned the retired coal fired electric generation facility made a good faith effort to sell the facility to another person prior to its retirement
in accordance with paragraphs (i) and (ii) of this subsection
and that the public utility did not refuse a reasonable offer to purchase the facility or the commission determines that, if a reasonable offer was
received, the sale was not completed for a reason beyond the reasonable control of the public utility.
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102.
Energy generation portfolio standards; reporting requirements; rate recovery and limitations.
(a)
Consistent with the objective of ensuring Wyoming electric utilities maintain access to reliable and cost effective electric generation resources
and subject to subsection (f) of this section
, the public service commission shall establish by rule energy portfolio standards that will maximize the use of dispatchable and reliable low
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carbon electricity. In establishing standards, the commission:
(f)
Any public utility that elects to install and operate carbon capture, utilization and storage technology at an otherwise retiring coal
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fired electric generation facility in accordance with W.S. 37
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119(c)(i) or (ii) shall be deemed to have complied with any standards established under this section.
Section 3
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The public service commission shall promulgate all rules necessary to implement this act.
Section 4
.
This act is
effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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SF0064