Dear :

This is a longer update than normal, so bear with me as two major issues were delayed until this week - Renewable Portfolio Standards (RPS) compromise legislation and Uber regulations.

RPS

Kansas adopted the Renewable Energy Portfolio Standards (RPS) in 2009, a set of standards mandating that utilities generate or purchase 20% of their energy from renewable sources by 2020.  Most of the utilities have achieved that standard a full four years ahead of schedule. 

Kansas has abundant winds, and a robust wind energy industry has developed in the state. In drought-stricken western Kansas, farmers have found that leasing their land for wind turbines helps them hang on in difficult conditions. Siemens built a wind turbine manufacturing plant in Hutchinson, and several other companies chose Kansas as a location for their new plants because of the RPS. Wind requires no water for production (in fact, more than 2 billion gallons of water is offset annually through wind production), therefore it is a terrific match for our state.

Despite all the positives, the uncertain business environment created by repeated battles to repeal the RPS over the past four years has taken a toll on new investment in renewable energy in our state. This year, the battleground shifted to tax policy, causing capital to move elsewhere. In an effort to regain stability in the marketplace and foster growth, wind industry stakeholders have negotiated a compromise with the opponents of the RPS. The art of compromise is rarely practiced these days, but is a welcome development to end the bitter battles over renewable energy.

House Sub SB 91 is the next iteration for marketplace stability and will put Kansas back on the list of top states to develop and operate a wind project. Specifically, the agreement accomplishes the following:

• Creates parity among all forms of electric generation for property tax treatment,
• For renewable energy projects after 12-31-2016 provides a 10 year property tax exemption (contributing 20 mills for Kansas schools),
• Honors current PILOT agreements for existing projects and those under construction, and
• Clarifies that renewable energy is not a public utility, thus for property tax purposes, renewable energy will be assessed at the 25% commercial rate versus the 33% public utility rate.

I have proudly and repeatedly voted to protect the RPS from repeal, however the constant battles have stalled growth. Supporting the compromise is good for business and will in turn be good for the environment. The focus can now return to investment and expansion. This editorial from the Topeka Capital-Journal helps explain the rationale for this agreement.

I voted yes because there is no doubt that creating a stable business climate will prove to be good for the earth’s climate.  The bill passed on final action 107-11. 

If you are interested in learning more about the Wind Coalition, I invite you to check out their web resources. 

Uber

The ridesharing service Uber continues to make news in Kansas. I wrote in my last newsletter about action taken in the final week of the regular session on a bill that puts some common-sense consumer protections in place for all companies operating as Transportation Network Companies (TNC). H Sub SB 117 contains a simple set of needed protections, using language Uber helped draft in other states as part of a national compromise. Specifically, the bill: 

The bill addresses a gap in insurance coverage for drivers engaged in Transportation Network Companies. Not only is the driver and his/her vehicle not covered by their personal automobile insurance policy while they are engaged in driving in the TNC network (basically anytime they are logged in to the network before, during and after actually transporting a customer) but the passenger and any other driver involved in an accident would be at risk.  

An amendment was added that relates to drivers who have a lien against their vehicle requiring them to provide proof of both comprehensive and collision coverage, in addition to the liability insurance required.

It is important to remember two things about this amendment:

Uber sent an alert to its subscribers to oppose the requirements of this amendment.  So many emails were sent to legislators that it crashed the state system, causing a number of problems with communications for a couple of days.

I carefully considered Uber’s concerns. However, they are not the only TNC operating in the state. When Kansans are operating a business where lives are in a driver’s hands, our citizens should have a minimum expectation of personal safety and protection if something should happen. The bill passed the House 107-16 and the Senate 35-2. I voted YES.

During the April recess, the governor vetoed the bill. Here is a link to a good story on that.

This portion of the legislative session is officially called the “Veto Session,” designed as an opportunity for the legislature to override vetoes issued by the governor. A two-thirds majority is required to over-ride a veto. Earlier this week, we took up that issue. The Senate voted 34-5 and the House voted 96-25 to pass the override.

Unfortunately, Uber chose to shut down their app in Kansas moments before we cast our vote, in an effort to bully the legislature into submission.

The Kansas City Star had a front page story a few weeks ago regarding Uber’s fight with Kansas City, MO over a more stringent set of regulations and additional fees approved by that city. Since that time, they have settled their differences with KC, MO. The Kansas plan provides needed protection without imposing undue regulation or financial burden. 

I have heard from several of you expressing your disappointment with the actions taken.  I thank you for your courtesy and outreach, even when we disagree. Efforts have been underway throughout the process to negotiate an agreement that is fair for all concerned. I am confident that Uber will return to service in Kansas soon. When that happens, I think it will be both beneficial to the interests of public safety and good for business.