Art Hobson says Feed-In Tariff bill a good idea

Please support the "Feed-In Tariff" (FIT) bill in the Arkansas legislature. FITs are the main cause of the great increase in renewable energy in many nations such as Germany, Denmark, and Spain. The idea is to subsidize entrepreneurs for the installation of small renewable electricity sources, including large wind farms because each turbine is counted as one "installation."
The subsidy is paid by the local electric power company, and the power company is then reimbursed via the Public Service Commission process. Everybody wins: The power company saves money by not having to build a new fossil-fuel power plant (expensive, and bad for the environment), rate-payers save money because the power doesn't have to raise rates to pay for a new plant, and entrepreneurs find a market for renewable power.
I've interacted with Bill Ball, who developed HB 1851, during the past year in my capacity as a member of the
Arkansas Governor's Commission on Global Warming. He's bright, forward-looking, responsible, and has a
laudable interest in renewable energy. The Commission, by a 17-to-4 "super-majority," supported a FIT proposal that was essentially identical to HB 1851.

I'm attaching the actual bill (it's brief and quite clear) in case you want to see it. And I'm attaching
Bill Ball's "talking points" for the bill. Here's the complete email list for the relevant Arkansas House Committee, the House Insurance and Commerce Committee.
Eddie Hawkins is chair, and Fred Allen is vice chair.
ossed: H3/9/09 H3/16/09 87th General Assembly A Bill 2
Regular Session, 2009 HOUSE BILL 1851 3
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By: Representatives Webb, L. Smith, Cash, Carroll 5
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For An Act To Be Entitled 8
AN ACT TO REQUIRE AN ELECTRIC PUBLIC UTILITY TO 9
PURCHASE ELECTRICITY PRODUCED BY A RENEWABLE 10
ENERGY PRODUCER IN THIS STATE; TO PROVIDE FOR THE 11
RECOVERY OF THE ELECTRIC PUBLIC UTILITY’S COSTS; 12
AND FOR OTHER PURPOSES. 13
14
Subtitle 15
THE ARKANSAS RENEWABLE ENERGY FEED-IN 16
ACT OF 2009. 17
18
19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
21
SECTION 1. Arkansas Code Title 23, Chapter 18, is amended to add an 22
additional subchapter to read as follows: 23
23-18-901. Title. 24
This subchapter shall be known and may be cited as the "Arkansas 25
Renewable Energy Feed-In Act of 2009". 26
27
23-18-902. Legislative findings and declaration of purpose. 28
(a) The General Assembly finds that it is in the public interest to: 29
(1) Promote and encourage the wise development and use of this 30
state’s renewable energy resources; 31
(2) Foster investment in emerging renewable energy technologies 32
using the renewable energy resources found within this state; and 33
(3) Require electric utilities to include Arkansas renewable 34
energy resources as an integral part of their energy portfolios. 35
(b) The purpose of this subchapter is to ensure that an electric 36
As Engrossed: H3/9/09 H3/16/09 HB1851
utility will include Arkansas renewable energy resources as an integral part 1
of its energy resource plan. 2
3
23-18-903. Definitions. 4
As used in this subchapter: 5
(1) “Commission” means the Arkansas Public Service Commission or the 6
appropriate regulatory governing body for an electric utility that is not 7
regulated by the commission; 8
(2) “Electric utility” means a publicly owned or an investor-owned 9
utility, an electric cooperative, or a municipal utility that is engaged in 10
the business of supplying electricity to an end user in this state; 11
(3) “Feed-in tariff” means a commission approved tariff that governs 12
the purchase of energy from a renewable electric generation facility by an 13
electric utility; 14
(4) “Renewable electric generation facility” means a facility for the 15
generation of electric energy that: 16
(A) Is located within this state; 17
(B) Is fueled by a renewable energy resource; and 18
(C) Has an effective capacity of not more than five megawatts 19
(5MW); and 20
(5) “Renewable energy resource” means a solar, wind, water, 21
geothermal, or biomass resource located within this state. 22
23
23-18-904. Requirement to purchase renewable energy. 24
(a) An electric utility shall file with the commission a feed-in 25
tariff that: 26
(1) Requires the electric utility to purchase the renewable 27
energy produced by a renewable electric generation facility at the price 28
established by the commission for a period not to exceed twenty (20) years; 29
and 30
(2) Contains those terms and conditions that are necessary to: 31
(A) Encourage the development and use of renewable energy 32
resources to generate electricity; 33
(B) Protect the integrity and reliability of the electric 34
utility’s electric system; and 35
(C) Protect the health, safety and welfare of the public. 36
As Engrossed: H3/9/09 H3/16/09 HB1851
(b) The commission shall approve the tariff: 1
(1) After notice and hearing; and 2
(2) If it finds the tariff is in the public interest. 3
(c)(1)(A) After the tariff is approved by the commission, an electric 4
utility shall offer to purchase under the feed-in tariff at least two percent 5
(2%) of its annual electricity supply from a renewable electric generation 6
facility. 7
(B) However, unless the commission for good cause modifies 8
the requirement for an electric utility under this subdivision, the electric 9
utility shall offer to purchase under the feed-in tariff at least twenty 10
percent (20%) of its electricity supply requirement under subdivision 11
(c)(1)(A) of this section from a residential or commercial renewable electric 12
generation facility. 13
(2) For an electric utility that demonstrates that compliance 14
with the requirement under subdivision (c)(1) of this section will cause its 15
energy costs to increase more than three percent (3%) than those energy costs 16
would have been otherwise, the commission shall reduce the requirement under 17
subdivision (c)(1) of this section. 18
(d) The electric utility shall retain any renewable energy credit that 19
derives from a feed-in tariff. 20
21
23-18-905 Cost of necessary interconnection facilities. 22
The cost of an addition or a modification of an electric utility’s grid 23
that is made at or beyond the point where the renewable energy producer 24
interconnects with the electric utility’s grid for the sole purpose of 25
receiving electricity from a renewable electric generation facility is the 26
exclusive responsibility of the renewable electric generation facility unless 27
the commission requires the electric utility to bear that cost or a portion 28
of that cost under § 23-18-906. 29
30
23-18-906. Cost recovery by the electric utility. 31
The commission shall permit an electric utility to: 32
(1) Recover the cost of electric energy purchased under a feed-33
in tariff; and 34
(2) Recover and earn a return on the reasonable and prudent 35
investment cost incurred by the electric utility for the construction of an 36
electric system upgrade that is reasonably necessary to receive the electric energy purchased under the feed-in tariff. 2
As Engrossed: H3/9/09 H3/16/09 HB1851
(b) The commission shall approve the tariff: 1
(1) After notice and hearing; and 2
(2) If it finds the tariff is in the public interest. 3
(c)(1)(A) After the tariff is approved by the commission, an electric 4
utility shall offer to purchase under the feed-in tariff at least two percent 5
(2%) of its annual electricity supply from a renewable electric generation 6
facility. 7
(B) However, unless the commission for good cause modifies 8
the requirement for an electric utility under this subdivision, the electric 9
utility shall offer to purchase under the feed-in tariff at least twenty 10
percent (20%) of its electricity supply requirement under subdivision 11
(c)(1)(A) of this section from a residential or commercial renewable electric 12
generation facility. 13
(2) For an electric utility that demonstrates that compliance 14
with the requirement under subdivision (c)(1) of this section will cause its 15
energy costs to increase more than three percent (3%) than those energy costs 16
would have been otherwise, the commission shall reduce the requirement under 17
subdivision (c)(1) of this section. 18
(d) The electric utility shall retain any renewable energy credit that 19
derives from a feed-in tariff. 20
21
23-18-905 Cost of necessary interconnection facilities. 22
The cost of an addition or a modification of an electric utility’s grid 23
that is made at or beyond the point where the renewable energy producer 24
interconnects with the electric utility’s grid for the sole purpose of 25
receiving electricity from a renewable electric generation facility is the 26
exclusive responsibility of the renewable electric generation facility unless 27
the commission requires the electric utility to bear that cost or a portion 28
of that cost under § 23-18-906. 29
30
23-18-906. Cost recovery by the electric utility. 31
The commission shall permit an electric utility to: 32
(1) Recover the cost of electric energy purchased under a feed-33
in tariff; and 34
(2) Recover and earn a return on the reasonable and prudent 35
investment cost incurred by the electric utility for the construction of an electric system upgrade that is reasonably necessary to receive the electric energy purchased under the feed-in tariff.
/s/ Webb 4