Kansas/EZ Policies
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EZ Policies for Kansas
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| Policy | Place | Policy Type | Active | Implementing Sector | Summary |
|---|---|---|---|---|---|
| Carbon Dioxide Capture/Sequestration Tax Deduction (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | Carbon Dioxide Capture/Sequestration Tax Deduction allows a taxpayer a deduction to adjusted gross income with respect to the amortization of the amortizable costs of carbon dioxide capture, sequestration or utilization machinery and equipment based upon a period of 10 years. Such amortization deduction shall be an amount equal to 55% of the amortizable costs of such machinery and equipment for the first taxable year in which such machinery and equipment are in operation and 5% of the amortizable costs of such machinery and equipment for each of the next nine taxable years. |
| Climate Action Plan (Kansas) | Kansas: Energy Resources | Climate Policies | No | State/Province | On March 21, 2008, Governor Kathleen Sebelius issued Executive Order No. 08-03 establishing the Kansas Energy and Environmental Planning Advisory Group (KEEP). The group’s purpose was to identify opportunities for Kansas to respond to the challenge of global climate change, while becoming more energy efficient and energy independent and spurring economic growth. The Advisory Group's task was to 1) Review and approve a current inventory and forecast of GHG sources and emissions from 1990 through 2025.
2) Develop and recommend short-, medium-, and long-term goals for statewide reductions in the amount of GHGs emitted by activities in Kansas. And, 3) Develop and recommend comprehensive climate mitigation policies in all economic sectors in Kansas through 2025 to meet or exceed state emission reduction goals. |
| Collection, Storage And Impounding Of Waters (Kansas) | Kansas: Energy Resources | Property Tax Incentive | Yes | State/Province | Kansas Statute Chapter 82 Article 4 lays out property tax exemption requirements for landowners who build and maintain dams on their property in the state of Kansas. Dams must meet the given standards for design, approval, construction, maintenance and procedure in order for the land owner to be eligible for tax exemption. |
| Commercial and Industrial Machinery Tax Exemption (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | All commercial and industrial machinery and equipment acquired by qualified purchase or lease made or entered into after June 30, 2006 shall be exempt from property tax. All commercial and industrial machinery and equipment transported into this state after June 30, 2006 for the purpose of expanding an existing business or the creation of a new business shall be exempt from property tax. |
| Community Development Block Grant (Kansas) | Kansas: Energy Resources | Grant Program | Yes | State/Province | The Community Development Block Grant provides funds aimed at creating or retaining permanent jobs, which must be filled by a majority of low- and moderate-income persons. Eligible small city and county governments may apply for the Community Development Block Grant economic development funds to make infrastructure improvements designed to assist companies in creating jobs. These funds may also be used by a business to acquire land or buildings, construct or renovate facilities, purchase machinery and equipment or for working capital. Companies can apply for up to $35,000 per job created with a maximum limit of $750,000. |
| Community Development Block Grant/Economic Development Infrastructure Financing (United States) | United States: Energy Resources | Grant Program Loan Program | Yes | Federal | Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state. |
| Compressed Air Energy Storage Act (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | Local | This act lays out regulations for the local authorities related to site selection, design, operation and monitoring for underground storage of compressed air. |
| Construction Work in Progress (Kansas) | Kansas: Energy Resources | Generating Facility Rate-Making | Yes | State/Province | This Act allows nuclear power plants to qualify for recovery of Construction Work in Progress (CWIP) and other preconstruction expenditures in rates. Previously, nuclear power plants were excluded from this treatment. The bill requires the Kansas Corporation Commission (KCC) to allow a utility to recover in rates prudent expenditures for developing a new nuclear plant. These development costs may include preliminary engineering, feasibility studies, prepayments for major equipment and permitting. Utilities can also seek predetermination of ratemaking principles that would apply to recover these costs. Costs of nuclear plant construction may be included in customer rates before the plant is operational. This legislation requires the KCC to allow utilities to capitalize and add to their rate base costs for energy efficiency, conservation and demand response programs. |
| Rate-Making Principles (Kansas) | Kansas: Energy Resources | Generating Facility Rate-Making | Yes | State/Province | This legislation permits the KCC to determine rate-making principles that will apply to a utility’s investment in generation or transmission before constructing a facility or entering into a contract for purchasing power. There is no restriction on the type or the size of electric generating unit for which rate-making principles can be set in advance. A petition for predetermining rate-making principles will include a description of the following: the utility’s conservation measures, demand-side management efforts, 10-year generation and load forecast, and all power supply alternatives considered. The KCC may review, but need not require, a competitive request for proposal process used by the utility. If the KCC fails to issue a determination within 180 days of the petition filing, the rate-making principles the utility proposed will be deemed to have been approved by the commission and shall be binding. If the project is built, once it is placed in service the rate-making principles apply to that generating facility in all subsequent rate cases. |
| Enterprise Zone Sales Tax Exemption (Kansas) | Kansas: Energy Resources | Sales Tax Incentive | Yes | State/Province | The Enterprise Zone Sales Tax Exemption offers businesses located in such economic development zones a 100 percent sales tax exemption on the purchase of labor and materials to construct or remodel a facility, as well as on the machinery, equipment, furniture and fixtures used in the facility. |
| Forestry Policies (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | Kansas is home to an established forestry industry managing roughly 2 million acres of land. The vast majority of these lands are privately owned. The Kansas Forest Service (KFS) provides the state's inventory and annual summary of its forests.
KFS issued in 2010 its Kansas Forest Action Plan, which includes discussion of the increasing volume and density of forests creating opportunity for new utilization of forest products including the use of woody biomass. http://www.kansasforests.org/documents/stateagency/Kansas_FRAS.pdf The Kansas Forest Service has also presented its Wood Energy Initiative, with the objective of promoting and growing the wood and biomass energy market in the state. The program offers assistance to any entity considering the use of such fuels and technologies. https://www.kansasforests.org/programs/products/woodenergy.shtml |
| Hazardous Waste Management Standards and Regulations (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This act states the standards and regulations for the management of hazardous waste. No person shall construct, modify or operate a hazardous waste facility or otherwise dispose of hazardous waste within this state without a permit from the secretary. Permits for hazardous waste facilities shall be issued for fixed terms not to exceed 10 years. Plans, designs and relevant data for the construction of hazardous waste facilities shall be prepared by a professional engineer licensed to practice in Kansas and shall be submitted to the department for approval prior to the construction. The article also states violations and penalties related to hazardous waste management as well as registration and insurance requirements for transportation of hazardous waste. |
| High Performance Incentive Program (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | High Performance Incentive Program provides tax incentives to eligible employers that pay above-average wages and have a strong commitment to skills development for their workers. A substantial investment tax credit for new capital investment in Kansas and a related sales tax exemption are the primary benefits of this program. HPIP offers employers four potential benefits: a 10 percent income tax credit for eligible capital investment that exceeds $50,000 at a company’s qualified business facility, a sales tax exemption to use in conjunction with the company’s eligible capital investment at its qualified business facility, a training tax credit of up to $50,000 or priority consideration for access to other business assistance programs offered through the State. Non-manufacturing companies must able to document that most of its sales are to Kansas manufacturers and/or out-of-state businesses or government agencies. |
| Integrated Coal Gasification Power Plant Credit (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | Integrated Coal Gasification Power Plant Credit states that an income taxpayer that makes a qualified investment in a new integrated coal gasification power plant or in the expansion of an existing integrated coal gasification power plant shall be allowed a tax credit. The credit is 10% of the taxpayer’s qualified investment on the first $250,000,000 invested, and 5% of the taxpayer’s qualified investment that exceeds $250,000,000. The credit will be taken in ten equal, annual installments, beginning with the year in which the taxpayer places into service the new integrated coal gasification power plant or the expansion of an existing integrated coal gasification power plant. If the amount of the credit exceeds the taxpayer’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used, except that no such tax credit shall be carried over for deduction after the 14th taxable year after the taxable year in which the first annual installment is allowed. |
| Interconnection Guidelines (Kansas) | Kansas: Energy Resources | Interconnection | Yes | State/Territory | Kansas adopted the Net Metering and Easy Connection Act in May 2009 (see K.S.A. 66-1263 through 66-1271), establishing interconnection guidelines and net metering for customer-owned generators. Net metering and the accompanying interconnection guidelines apply to systems that generate electricity using solar, wind, methane, biomass or hydro resources, and to fuel cells using hydrogen produced by an eligible renewable technology, with a rated capacity of 25 kilowatts (kW) or less for residential customers, 200 kW or less for non-residential customers and 1.5 megawatts (MW) for Cloud County and Dodge City community colleges.
Generators must meet all applicable safety, performance, interconnection and reliability standards established by the National Electrical Code, the National Electrical Safety Code, and the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, the Federal Energy Regulatory Commission, and any local governing authorities. The utility must provide a bi-directional meter to the customer at no additional cost to the customer. The utility may not require a customer-generator to purchase additional liability insurance if all safety and interconnection requirements are met. However, utilities are authorized to require interconnected customers to install an external disconnect switch. The Kansas Corporation Commission adopted rules (K.A.R. 82-17-1 through 82-17-5) to implement the statute’s interconnection and reliability standards in July 2010. These rules are limited, and they include additional protection for the utility in the event of disruptive problems to the utility's system caused by a net-metered facility. |
| Interstate Oil and Gas Conservation Compact (Multiple States) | Alabama: Energy Resources Alaska: Energy Resources Arizona: Energy Resources Arkansas: Energy Resources California: Energy Resources Colorado: Energy Resources Florida: Energy Resources Georgia: Energy Resources Idaho: Energy Resources Illinois: Energy Resources Indiana: Energy Resources Kansas: Energy Resources Kentucky: Energy Resources Louisiana: Energy Resources Maryland: Energy Resources Michigan: Energy Resources Mississippi: Energy Resources Montana: Energy Resources Nebraska: Energy Resources Nevada: Energy Resources New Mexico: Energy Resources New York: Energy Resources North Dakota: Energy Resources Ohio: Energy Resources Oklahoma: Energy Resources Pennsylvania: Energy Resources South Dakota: Energy Resources Texas: Energy Resources Utah: Energy Resources Virginia: Energy Resources West Virginia: Energy Resources Wyoming: Energy Resources | Environmental Regulations | Yes | State/Province | The Interstate Oil and Gas Compact Commission assists member states efficiently maximize oil and natural gas resources through sound regulatory practices while protecting the nation's health, safety and the environment.
The Commission serves as the collective voice of member governors on oil and gas issues and advocates states' rights to govern petroleum resources within their borders. The Commission formed the Geological CO2 Sequestration Task Force, which examines the technical, policy and regulatory issues related to safe and effective storage of CO2 in the subsurface (depleted oil and natural gas fields, saline formations and coal beds). The Commission also funds research on hydraulic fracking, reusing water used in extracting oil and gas, and makes recommendations on national energy policies and statutes for individual states. The Commission also has several associate states: North Carolina, South Carolina, Georgia, Tennessee, Missouri, Idaho, Oregon and Washington. In addition, it has international affiliations with the Canadian provinces of Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, and the Yukon. |
| Kansas - Net Metering (Kansas) | Kansas: Energy Resources | Net Metering | Yes | State/Territory | Kansas adopted the Net Metering and Easy Connection Act in May 2009 (see K.S.A. 66-1263 through 66-1271), establishing net metering for customers of investor-owned utilities in Kansas. Net metering applies to systems that generate electricity using solar, wind, methane, biomass or hydro resources, and to fuel cells using hydrogen produced by an eligible renewable technology, with a rated capacity of 25 kilowatts (kW) or less for residential customers, 200 kW or less for non-residential customers and 1.5 megawatts (MW) for Cloud County and Dodge City community colleges.
If a customer-generator produces more electricity than is consumed during a monthly period, the net excess generation (NEG) will be carried forward to the next month at the full retail rate. Any excess generation remaining in the customer's account at the end of the calendar year will be granted to the utility. See Net Metering in Kansas for answers to frequently asked questions. Utilities are required to offer net metering on a first-come, first-served basis until the rated generating capacity of all net-metered systems equals 1% of the utility's peak demand during the previous year (see K.A.R. 82-17-4 for annual reporting requirements). The Kansas Corporation Commission adopted rules (K.A.R. 82-17-1 through 82-17-5) to implement the statute’s net-metering standards in July 2010. These rules are limited, and they include additional protection for the utility in the event of disruptive problems to the utility's system caused by a net-metered facility. Utilities are required to offer net metering and must provide net-metered customers with a bi-directional meter at no cost to the customer. Utilities are also prohibited from charging net-metered customers any additional standby charges, capacity charges, interconnection charges or other fees that a customer would not incur if the customer did not participate in net metering. The estimated generating capacity of all net-metered systems may count towards the utility’s renewable capacity requirement under Kansas's renewable portfolio standard (RPS). More information on utility net metering policies and interconnection guidelines are available on the following utility websites:
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| Kansas Air Quality Act (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | No person shall construct, own, operate, install, alter or use any air contaminant emission stationary source which, in accordance with rules and regulations, the secretary finds may cause or contribute to air pollution, unless an appropriate approval or permit has been issued for the source by the secretary under this act. Approvals or permits issued by the secretary may be subject to conditions consistent with the purposes of this act and rules and regulations promulgated under this act. The secretary shall require that applications for approvals and permits, and renewals thereof, under this act shall be accompanied by application fees and such plans, specifications, compliance plans or other information as the secretary deems necessary. No permit shall be issued, modified, renewed or reopened without first providing the public an opportunity to comment and request a public hearing on the proposed permit action. The secretary may designate competent representatives who may enter and inspect any property, premise or place at any reasonable time for the purpose of investigating either an actual or possible source of air pollution or of ascertaining the state of compliance with this act and regulations in force pursuant thereto. |
| Kansas Air Quality Regulations (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | All new air contaminant emission sources or alterations to emission sources that are required to be reported shall be in compliance with all applicable emission control regulations at the time that they go into operation. No person shall cause or permit the installation or use of any machine, equipment, device or other article, or alter any process in any manner which, without resulting in a reduction of the total amount of contaminants emitted, conceals or dilutes the emission of contaminants which would otherwise violate provisions of these control regulations. A major stationary source shall not begin actual construction or major modification unless the owner or operator of the source has been issued a permit approving this activity. |
| Kansas Certified Development Companies (Kansas) | Kansas: Energy Resources | Loan Program | Yes | State/Province | Kansas Certified Development Companies (CDC) assist businesses by developing loan packages that meet the financial need of a project. These packages often contain multiple sources of project funding, thus providing the small business customer with the best combination of rates and terms possible. Each CDC has an area of operation in which it focuses its efforts on serving the small-business community. The state provides financial support to augment these efforts. A list of CDCs and their service areas is available from the Business Development Division. In March 2012, the Kansas Department of Commerce combined the Business Development and Rural Development divisions to form the new Business and Community Development Division. This reorganization reflects the Department's emphasis on more focused coordination between the various segments of the organization. |
| Machinery & Equipment Expensing Deduction (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | Machinery and Equipment Expensing Deduction allows Kansas taxpayers to claim an expense deduction for business machinery and equipment, placed in service in Kansas during the tax year. The one-time deduction is allowed for each qualified purchase of machinery and equipment in the year that it is placed in service. The expensing deduction is representative of the difference between the cost of the item and the present value of the stream of depreciation deductions allowed under normal federal depreciation rules. Any unused expense deduction may be carried forward until fully claimed in future years. If the property is relocated outside Kansas or disposed of before the end of its federal depreciable life, the amount of the tax liability relieved by the deduction may be subject to repayment. |
| Natural Gas Pipeline Safety (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This article states minimum safety standards for the transportation of natural gas by pipeline and reporting requirements for operators of pipelines. |
| North American Renewables Registry (Multiple States) | North Carolina: Energy Resources Kansas: Energy Resources Illinois: Energy Resources Missouri: Energy Resources Puerto Rico: Energy Resources | Green Power Purchasing | Yes | Non-Profit | The North American Renewables Registry (NAR) provides a Web-based platform trusted to create, track, and manage renewable energy certificate (REC) origination for clean generation facilities and states not covered by one of the existing APX-powered, regional systems. All market participants are able to take advantage of a trusted infrastructure to help manage their role in the market. With the ability to create unique, serialized records for every REC, the Registry provides product transparency, accountability and protection against double counting. The system has been designated as the compliance system for the Missouri Renewable Energy Standard (RES). The State of North Carolina has also designated NAR as an eligible registry for facilities located outside of North Carolina that seek to qualify for the North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard. Recently, the Kansas Corporation Commission decided to use NAR to verify RECs purchased by Kansas utilities and cooperatives for compliance with the Kansas Renewable Portfolio Standard. With this addition, renewable energy facilities registered in NAR can now be tagged as eligible for Kansas, Illinois, Missouri and Puerto Rico if they have met the applicable requirements as a renewable facility. Furthermore, NAR is currently able to export certificates to North Carolina Renewable Energy Tracking System (NC RETS) and accept imports of certificates from Western Renewable Energy Generation Information System (WREGIS), Michigan Renewable Energy Certification System (MIRECS), Midwest Renewable Energy Tracking System (M-RETS) and NC RETS. |
| Oil and Gas Wells: Regulatory Provisions (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | It shall be unlawful for any person, firm or corporation having possession or control of any natural gas well, oil well or coalbed natural gas well, whether as a contractor, owner, lessee, agent or manager, to use or permit the use of gas by direct well pressure. Any person or persons, firm, company or corporation violating any of the provisions of this act shall be deemed guilty of a misdemeanor, and upon conviction shall be fined in any sum not less than $100 or more than ten thousand dollars, and may be enjoined from conveying and transporting natural gas through pipes otherwise than in this act provided. Operators shall notify the commission prior to setting surface casing on or plugging of any well, in conformance with the rules and regulations adopted pursuant to this act. This article also lists regulations for drilling wells and underground storage of gas. |
| Power Plant Dams (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This act states the provisions for erection and maintenance of dams. When any person, corporation or city may be desirous of erecting and maintaining a milldam or dam for generating power across any watercourse, the party so desiring to do the same may run the stream over the land of any other person by ditching or otherwise, and he, she or it may obtain the right to erect and maintain said dam and keep up and maintain the necessary ditches or races by proceeding as is prescribed in the act. Any person having obtained the right to erector maintain any dam, under the provisions of this act, who shall not, within one year thereafter, begin to build said dam and finish the same, or who, having already erected said dam, shall, for the same length of time, fail to proceed to perfect his or her right to maintain the same. |
| Production and Conservation of Oil and Natural Gas (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | The owner, operator, or any other person responsible for a drilling operation shall submit written notice of the intention to drill to the conservation division for permit approval before the commencement of drilling operations. Every person who drills a well or test hole, for any purpose, that penetrates formations containing oil, gas, fresh water, mineralized water, or valuable minerals shall case or seal off these formations to effectively prevent migration of oil, gas or water from or into strata that would be damaged by this migration. The effectiveness of the casing or sealing off shall be tested in a manner prescribed or approved by an agent of the commission. The article also provides details about drilling locations, penalties and operating fees and the formula for determination of open flow in a gas well. Regulations for carbon dioxide storage facilities: No entity shall operate a CO2 storage facility without a permit to operate the facility. A geologic, hydrogeologic, and reservoir evaluation of the proposed CO2 storage facility, including the predicted amount of CO2 that will be stored in the reservoir. The evaluation shall describe the geologic, geomechanic, hydrogeologic, and reservoir characteristics of the proposed CO2 storage reservoir or reservoirs, the adjacent confining layer or layers, and the reservoir conditions that control the trapping mechanism. |
| Promoting Employment Across Kansas (PEAK) (Kansas) | Kansas: Energy Resources | Corporate Tax Incentive | Yes | State/Province | Promoting Employment Across Kansas (PEAK) allows for the retention of employee payroll withholding taxes for qualified companies or third parties performing services on behalf of such companies. This program offers qualified companies the ability to retain 95 percent of their payroll withholding tax for up to five to seven years. PEAK is available to new operations in Kansas as well as relocated operations to the state. Companies need to create at least 10 new jobs within two years in metropolitan areas or five new jobs within two years in all other counties of the state. High-impact projects that create 100 new jobs within two years can retain 95 percent of payroll withholding tax for up to seven to 10 years. The number of years that the withholding tax can be retained depends on how much the annual median wage of the jobs at the Kansas worksite will exceed the current county median wage and the discretion of the Secretary of the Kansas Department of Commerce. |
| Property Tax Exemption for Machinery, Equipment, Materials, and Supplies (Kansas) | Kansas: Energy Resources | Property Tax Incentive | Yes | State/Province | The Property Tax Exemption for Machinery, Equipment, Materials, and Supplies exists for low-dollar items of machinery, equipment, materials and supplies used for business purposes, or in activities by an entity not subject to Kansas income tax. A property tax exemption exists for all machinery, equipment, materials and supplies used for business purposes, or in activities by an entity not subject to Kansas income tax which were acquired after June 30, 2006. |
| Property exempt from taxation: nuclear generation facility property: K.S.A. 79-230 (Kansas) | Kansas: Energy Resources | Property Tax Incentive | Yes | State/Province | This legislation would exempt from state property taxes any property purchased, constructed or installed to expand capacity at an existing nuclear plant or to build a new nuclear plant. A qualifying new nuclear plant must be within three miles of an existing reactor. Expanded capacity must increase an existing facility's capacity by at least 10 percent. Eligible projects that add nuclear capacity must be started after December 31, 2006. Property tax exemption begins at the start of construction or installation of the property and continues for 10 years after the construction or installation is complete. If new nuclear capacity that is already expanded or operating is purchased, the exemption is for 10 years after purchase. |
| Qualifying RPS State Export Markets (Kansas) | Kansas: Energy Resources | Renewables Portfolio Standards and Goals | Yes | State/Province | This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Kansas as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (North Dakota, South Dakota) may be lower. |
| Renewable Energy Property Tax Exemption (Kansas) | Kansas: Energy Resources | Property Tax Incentive | Yes | State/Territory | Kansas statute exempts renewable energy equipment from property taxes. Renewable energy includes wind, solar thermal electric, photovoltaic, biomass, hydropower, geothermal, and landfill gas resources or technologies that are actually and regularly used predominantly to produce and generate electricity. In addition, beginning in the 2002 tax year all personal property used to collect, refine, and treat landfill gas or transport landfill gas from a landfill to a transmission pipeline (i.e., not necessarily used for electricity generation) is also exempt from property taxes. |
| Renewables Portfolio Standard (Kansas) | Kansas: Energy Resources | Renewables Portfolio Standard | Yes | State/Territory | Kansas adopted the Renewable Energy Standards Act in 2009 (K.S.A. 66-1256), establishing a renewable portfolio standard (RPS). This statute requires the state's investor-owned and cooperative utilities to generate or purchase 10% of their electricity from eligible renewable resources in the years 2011-2015, 15% in the years 2016-2019, and 20% by 2020.
Eligible resources include wind, solar thermal, photovoltaics (PV), dedicated crops grown for energy production, cellulosic agricultural residues, plant residues, methane from landfills or wastewater treatment, clean and untreated wood products such as pallets, existing hydropower, new hydropower that has a nameplate rating of 10 megawatts (MW) or less, fuel cells using hydrogen produced by an eligible renewable resource, and other sources of energy that become available in the future and are certified as renewable by the KCC. While the portfolio standards of most other states are based on retail electric sales (kilowatt hours), Kansas' standard is based on generation capacity: this is generally the gross capacity owned or leased by a utility less the auxiliary power used to operate the facility. The auxiliary power is determined by performing a test of each facility. In the case of multi-unit resources (such as a wind farm), the test will be conducted on only 10% of the units. If it is not practical to perform the test on any particular facility, the nameplate net capacity of the facility will be used. Each MW of eligible capacity installed in Kansas after January 1, 2000, will count as 1.1 MW for the purpose of compliance. Renewable Energy Credits (RECs) can be used to comply with the requirement by using formulas included in K.A.R. 82-16. Capacity from RECs is based on the affected utility's actual capacity factor of its owned renewable generation of the same resource type from the previous year. For example, if a utility purchases wind RECs in order to meet compliance, it must use the average capacity factor of its own existing wind facilities in order to calculate the capacity from RECs that can be counted towards compliance. If the utility does not have a facility of the same resource as the RECs, then the capacity factor of the utility's overall renewable energy generation shall be used for the REC capacity calculation. If the utility has no renewable energy generation, a default capacity factor of 34% shall be used. For compliance years 2011, 2016, and 2020, RECs can only be used to meet a portion of the utility's requirement. Utilities may purchase or sell RECs without KCC approval, but each REC can only be counted once. In order to prevent double counting or misuse, each REC sold or purchased by any Kansas utility must be reported into an approved registry that tracks the creation, sale, and retirement of every REC. Any unused RECs remain valid for up to 2 years from the date of generation. After 2 years, the REC is permanently retired. Utilities may also purchase capacity from other renewable energy producers in order to comply with the RPS. If a utility enters into a purchasing contract of 10 years or more, the amount of capacity counted towards compliance will be the nameplate capacity minus the auxiliary power required to produce the capacity. If the purchase contract is less than 10 years, then the capacity from the purchased power will be calculated using the same formulas used to calculate REC capacity. The Kansas Corporation Commission (KCC) established rules and regulations to administer the portfolio standard on October 27, 2010 (K.A.R. 82-16). To assist in verifying compliance, the KCC decided to use the North American Renewables Registry (NAR). See Managing Compliance with the Renewable Energy Standards Act (RES) in NAR. K.A.R. 82-16 established reporting and penalty rules for the utilities. The first report is due on or before August 1, 2011, for the year 2011, and an annual report is due on or before August 1 for subsequent years. Failure to comply with the renewable energy requirements results in a minimum penalty equal to twice the market value of RECs that would have been required to meet the requirement. The KCC is not required to assess penalties for compliance years 2011 and 2012 if the utility can demonstrate a good faith effort to comply with the requirement. Penalties may vary after evaluation of mitigating circumstances or evidence of good faith efforts to comply. |
| Solar and Wind Manufacturing Incentive (Kansas) | Kansas: Energy Resources | Industry Recruitment/Support | No | State/Territory | Manufacturers of solar or wind equipment or components in Kansas may be eligible for financing through the Kansas Department of Commerce to support research, development, engineering or manufacturing projects. To qualify the project must result in at least $30,000,000 in new investments in Kansas and the hiring of at least 200 new employees within 5 years, with an average annual compensation of at least $32,500 per Kansas employee. The manufacturer must apply for financing to the Kansas Department of Commerce, which will request that the Kansas Development Finance Authority issue bonds to finance the project. Individual solar or wind projects are eligible for up to $5,000,000 in financing. The principal and interest of the bonds are retired using the payroll tax withholding from the new jobs.
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| Solid Waste Management (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This act aims to establish and maintain a cooperative state and local program of planning and technical and financial assistance for comprehensive solid waste management. No person shall construct, alter or operate a solid waste processing facility or a solid waste disposal area of a solid waste management system, except for clean rubble disposal sites, without first obtaining a permit from the secretary. Every person desiring to obtain a permit shall make application for such a permit on forms provided for such purpose by the rules and regulations of the secretary and shall provide the secretary with such information as necessary to show that the facility or area will comply with the purpose of this act. |
| Surface Water Quality Standards (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This act states regulations for the quality of surface water in the state. It also states designated uses of classified surface waters, surface water quality criteria and an antidegradation policy to limit discharges and other activities that will negatively impact water quality, impair designated uses, or threaten to impair designated uses of surface waters. |
| Tax-Exempt Industrial Revenue Bonds (Kansas) | Kansas: Energy Resources | Bond Program | Yes | State/Province | Tax-Exempt Industrial Revenue Bonds are issued by cities and counties for the purchase, construction, improvement or remodeling of a facility for agricultural, commercial, hospital, industrial, natural resources, recreational development or manufacturing purposes. The board of county commissioners of any county or the governing body of any city may approve an exemption of property funded by industrial revenue bonds (IRB's). Some projects are only partially funded with IRB's. The property associated therewith would only qualify for exemption to the extent funded with IRB's. |
| Underground Injection Control Regulations (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | This article prohibits injection of hazardous or radioactive wastes into or above an underground source of drinking water, establishes permit conditions and states regulations for design, construction and monitoring of wells. |
| Underground Natural Gas Storage Wells in Bedded Salt (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | These regulations apply to natural gas underground storage and associated brine ponds, and includes the permit application for each new underground storage tank near surface water bodies and springs. |
| Underground Storage of Natural Gas (Kansas) | Kansas: Energy Resources | Environmental Regulations | Yes | State/Province | Any natural gas public utility may appropriate for its use for the underground storage of natural gas any subsurface stratum or formation in any land which the commission shall have found to be suitable and in the public interest for the underground storage of natural gas, and in connection therewith may appropriate such other interests in property as may be required adequately to examine, prepare, maintain and operate such underground natural gas storage facilities. The owner of an underground natural gas storage facility shall provide to the state corporation commission a plat map identifying the location of such facility and a description of the geological formation or formations to be used for storage. |