STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

HOUSE BILL 1573	By:	Martin (Scott)

AS INTRODUCED

An Act relating to nuclear energy; creating the Nuclear Energy Act of 2011; providing short title; defining terms; authorizing electric utilities to apply to the Corporation Commission for determination of need to construct a nuclear power plant; stating procedures for determining need; specifying content of application; limiting application of certain rules to nuclear power plants; providing for review of a final order by the Oklahoma Supreme Court; providing for the creation of a task force to study tax credits for nuclear power plants; stating duties; providing for membership; requiring certain qualifications; providing for travel reimbursement and staffing; requiring a report; amending 11 O.S. 2001, Section 24-105, which relates to the Oklahoma Municipal Power Authority; updating statutory language; removing prohibition from owning interest in nuclear power plants; repealing 11 O.S. 2001, Sections 24-105.1 and 24-117, which relate to prohibiting public power ownership of nuclear generation facilities; providing for codification; providing for noncodification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 180.21 of Title 17, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Nuclear Energy Act of 2011".
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 180.22 of Title 17, unless there is created a duplication in numbering, reads as follows:
As used in the Nuclear Energy Act of 2011:
1.  "Public utility" or "utility" means any corporation organized or doing business in this state that now owns or hereafter may own, operate, or manage any plant or equipment for the manufacture, production, transmission, delivery, or furnishing of electric current for light, heat, or power to the public;
2.  "Nuclear power plant", “power plant” or "plant" means any physical facility, plant, or equipment for the generation or production of electricity or electric power using nuclear materials as a source of fuel, power, or energy;
3.  “Commission” shall mean the Corporation Commission of the State of Oklahoma.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 180.23 of Title 17, unless there is created a duplication in numbering, reads as follows:
A.  An electric utility subject to rate regulation by the Corporation Commission, or other lawfully organized electric service provider, may elect to file an application seeking a determination of need to construct a nuclear power plant.  If the Commission approves the application and enters an order determining a need for construction of a nuclear power plant, the power plant will be considered used and useful and its costs shall be subject to cost recovery rules promulgated by the Commission.  The Commission shall enter an order on an application filed pursuant to this subsection within one hundred eighty (180) days of the filing of the application, following notice and hearing.
B.  The Commission shall be the sole forum for the determination of this matter and the issues addressed in the application, which accordingly shall not be reviewed in any other forum, or in the review of proceedings in the other forum.
C.  In determining whether there is a need for the nuclear power plant, the Commission shall consider, at a minimum, the cost of power and energy from the nuclear power plant compared to alternatives, the benefits of fuel diversity, and other operational and cost considerations the Commission deems relevant and necessary.
D.  The application shall include:
1.  The reasons why the utility is proposing to build the nuclear power plant, including the power needs of the utility and the cost of nuclear power compared to alternatives;
2.  A description of how the proposed nuclear power plant will enhance the reliability of electric power production within the state and improve the balance of power plant fuel diversity;
3.  A nonbinding estimate of the cost of the nuclear power plant, including any costs associated with new, enlarged, or relocated electrical transmission lines or facilities that are necessary for the nuclear power plant to deliver power and energy;
4.  The annualized base revenue requirement for the first twelve (12) months of operation of the nuclear power plant; and
5.  A report of any discussions with other electric utilities regarding the potential of joint ownership of the nuclear power plant.
E.  In making its determination, the Commission shall take into account any matters within its jurisdiction, which it deems relevant, including whether the nuclear power plant will:
1.  Provide needed capacity and energy;
2.  Enhance the reliability of electric power production within the state by improving the balance of fuel diversity for electric generation facilities; and 
3.  Provide a cost-effective source of energy, taking into account the need to reduce air emission compliance costs, and enhance the long-term stability and reliability of the electric grid.
F.  No provision of the Commission rules regarding competitive procurement shall be applicable to a nuclear power plant authorized by this act.  A utility shall not be required to secure competitive proposals for power supply prior to making application under this act or receiving a determination of need from the Commission.
G.  The final order of the Commission, including any order on reconsideration, shall be reviewable on appeal to the Oklahoma Supreme Court.  Since delay in the determination of need will delay siting of a nuclear power plant or diminish the opportunity for savings to customers under the federal Energy Policy Act of 2005, the Supreme Court shall proceed to hear and determine the action as expeditiously as practicable and give the action precedence over matters not accorded similar precedence by law.
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 180.24 of Title 17, unless there is created a duplication in numbering, reads as follows:
Within six (6) months following the effective date of this act, the Corporation Commission shall promulgate rules providing for alternative cost recovery mechanisms for the recovery of costs incurred by a public utility in the siting, design, licensing, and construction of a nuclear power plant.
SECTION 5.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:
A.  No later than thirty (30) days following the effective date of this act, a task force shall be appointed to study and make recommendations on an appropriate tax credit for entities investing in a nuclear power plant located in this state.  The task force shall review the tax credit provided in Section 2357.32A of Title 68 of the Oklahoma Statutes for the production and sale of electricity by zero-emission facilities located in this state and determine if that tax credit or a similar tax credit at least equal to that tax credit should be extended for the purchase of electricity generated by a nuclear power plant located in this state.
B.  Nine (9) members shall be appointed as follows:
1.  The Secretary of Energy shall be the chair of the task force;
2.  Two members shall be appointed by the Governor;
3.  Three members shall be appointed by the President Pro Tempore of the Senate; and
4.  Three members shall be appointed by the Speaker of the House of Representatives.
C.  Each appointing authority shall appoint members with knowledge of the electric generation industry or financial expertise relating to electric generation.
D.  Members shall serve without compensation but shall be eligible for travel reimbursement in accordance with the State Travel Reimbursement Act to be paid by the appointing authority.
E.  Staffing and administrative duties shall be provided as directed by the Secretary of Energy.
F.  The task force shall report its recommendations to the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives no later than December 1, 2012.
SECTION 6.     AMENDATORY     11 O.S. 2001, Section 24-105, is amended to read as follows:
Section 24-105.  Definitions.  As used in ~~this act the following words shall have the following meanings unless the context clearly indicates otherwise~~ the Oklahoma Municipal Power Authority Act:
~~(a)~~ 1.  "Authority" ~~shall mean~~ means the Oklahoma Municipal Power Authority hereby created and any successor or successors thereto.  Any change in name or composition of the Authority shall in no way affect the vested rights of any person under the provisions of this act or impair the obligations of any contracts existing under this act~~.~~;
~~(b)~~ 2.  "Board of Directors" ~~shall mean~~ means the Board of Directors elected by the election committee as set forth in Section ~~4~~ 24-104 of this ~~act~~ title which shall exercise all the powers and manage and control all the affairs and property of the Authority unless otherwise specifically provided herein or in the bylaws of the Authority as in effect from time to time~~.~~;
~~(c)~~ 3.  "Bonds" ~~shall mean~~ means any revenue bonds, notes or other evidences of obligations of the Authority issued by the Authority under the provisions of this act, including, without limitation, bond anticipation notes and refunding bonds~~.~~;
~~(d)~~ 4.  "Eligible public agency" ~~shall mean~~ means any municipality, authority or other public body which owns, maintains or operates an electrical energy generation, transmission or distribution system within the State of Oklahoma on the date on which this act becomes law~~.~~;
~~(e)~~ 5.  "Person" ~~shall mean (i)~~ means:
a.	any natural person~~; (ii)~~,
b.	any eligible public agency as defined herein~~; (iii)~~,
c.	any public trust as defined herein~~; (iv)~~,
d.	the United States, any state, any municipality, political subdivision, municipal corporation, unit of local government, governmental unit or public corporation created by or pursuant to the laws of the United States or any state, or any board, corporation or other entity or body declared by the laws of the United States or any state to be a department, agency or instrumentality thereof~~; (v)~~,
e.	any corporation, not for profit corporation, firm, partnership, cooperative association, electric cooperative or business trust of any nature whatsoever organized and existing under the laws of the United States or any state~~;~~, or ~~(vi)~~
f.	any foreign country, any political subdivision or governmental unit of any foreign country or any corporation, not for profit corporation, firm, partnership, cooperative association, electric cooperative or business trust of any nature whatsoever organized and existing under the laws of any foreign country or of any political subdivision or governmental entity thereof~~.~~;
~~(f)~~ 6.  "Project" ~~shall mean~~ means any plant, works, system, facilities and real and personal property of any nature whatsoever, together with all parts thereof and appurtenances thereto, located within or without the State of Oklahoma, used or useful in the generation, production, transmission, purchase, sale, exchange or interchange of electrical energy and in the acquisition, extraction, processing, transportation or storage ~~or~~ of fuel of any kind for any such purposes or any interest in, or right to the use, services, output or capacity, of any such plant, works, system or facilities~~; provided, however, a project shall not include (i) any interest in any plant for the generation of electrical energy which is to be owned jointly with any investor‑owned utility if such plant is not existing on May 10, 1981, or (ii) any interest in any nuclear powered generating plant.  For purposes of this definition, a plant shall be considered to be existing if construction shall have been commenced at the plant site, if orders have been placed for major components of equipment or if the plant is to consist of an additional unit at the site of an already existing unit which will use in common any of the existing facilities at such site.~~; and
~~(g)~~ 7.  "Public trust" ~~shall mean~~ means any public trust created and existing under the provisions of the Trusts for Furtherance of Public Functions Law, as provided by ~~Sections~~ Section 176 et seq. of Title 60 of the Oklahoma Statutes, and the Oklahoma Trust Act, as provided by ~~Sections 175~~ Section 175.1 et seq. of Title 60 of the Oklahoma Statutes, which has as its beneficiary a municipality and which owns, maintains or operates an electrical energy generation, transmission or distribution system serving the residents and consumers of such municipality and existing on the date on which this act becomes law or created hereafter with an eligible public agency as the beneficiary.
SECTION 7.     REPEALER     11 O.S. 2001, Sections 24-105.1 and 24-117, are hereby repealed.
SECTION 8.  This act shall become effective November 1, 2011.

53-1-6242	KB	01/19/11