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Kansas Liberty: 23 May 2008

Two suits challenge the KDHE Secretary's actions. State has already lost billions.

Despite vetoes, Sunflower Electric hasn't given up hope

House Speaker Melvin Neufeld, R-Ingalls, announced this week that the House leadership would not attempt to overturn Gov. Kathleen Sebelius veto of an economic stimulus bill that included a $3.5 billion coal-fired power plant in Holcomb.

The last chance the Legislature has to override will pass on May 29, when the House and Senate convene for the ceremonial closing of the legislative session.

Other development plans, such as one put forward by Texas-based Hyperion Resources Inc., have been affected by the governor's opposition to the Holcomb plant. Hyperion apparently has withdrawn its consideration of a Kansas site for a $10 billion oil refinery that would have created nearly 10,000 jobs.

According to a report in the Topeka Capital-Journal, the company said the uncertainty caused by the governor's support of a decision by Kansas Department of Health and Environment Rod Bremby to ban the plant because it may contribute to global warming  was a "major concern." The refinery will be built in South Dakota, instead.

The newspaper's reporter, James Carslon, cites unnamed "others" who claimed that South Dakota was always Hyperion's first choice. However the article provides no basis for the claim, which is disputed by other sources named in the report.

The ambivalence that made Hyperion reconsider seems to come from the top. When the Capital-Journal asked Sebelius's press spokesperson about Hyperion's chances of being able to pass Kansas' regulatory scrutiny, she said, ""We're definitely open to continuing conversations with Hyperion, but we're not saying that this specific project would be approved."

But Sunflower Electric and its partners in the venture are continuing to explore other options to let their project proceed.

Cindy Hertel, a spokesperson for the utility, said two suits already had been filed challenging the actions of Bremby, who cited his emergency powers in defying the recommendation of his professional staff at KDHE and denying an air permit sought by the power company on the basis of projected "greenhouse gas" emissions.

One suit, which has been joined by the Garden City Chamber of Commerce, is pending in Finney County District Court. Another lawsuit has been filed with a Kansas appeals court. Both seek a reversal of Bremby’s decision. Bremby claimed carbon dioxide emissions from the plant could harm Kansas residents.

There is no federal or state standard governing carbon dioxide emissions and no scientific evidence linking carbon dioxide to climate change, and in any case, carbon dioxide is not a pollutant. Other, older plants on the eastern side of the state emit far more carbon dixide than the Holcomb plant, but are so far unaffected by Bremby's ban.

The Sierra Club's executive director said that the state's chapter had "organized day and night for weeks" to help defeat previous attempts to override Sebelius' vetoes of bills that would have permitted the Holcomb plant.

If Bremby’s action is allowed to stand, Hertel said: “It wouldn’t bode well for business.”

“The business community needs to know what the criteria is for getting a permit, and in our case, the rules were changed in the middle of the game,” Hertel said.

Hertel said Sunflower, a coop, also was continuing to discuss options with Kansas legislators.

In a press release issued by the company, Sunflower Electric President and CEO Earl Watkins said: “In addition to seeking legal remedies, Sunflower will continue working with the Legislature and the administration to advance an energy policy in Kansas that will allow for the construction of all forms of base load generation, including the expansion of existing facilities in a manner that recognizes value to existing customers of not-for-profit cooperatives.”

Neufeld said it would have been impractical to attempt a veto during the ceremonial last day of the session, which many legislators do not routinely attend.

He called Sebelius’ latest veto “a tremendous setback for Kansas.”

“An overwhelming majority of Representatives and Senators serving all 105 Kansas counties voted in support of comprehensive energy legislation this session,” Neufeld said.  “Our legislative efforts received broad based support from a large coalition of key business, agriculture and labor organizations.  They came together to encourage legislation that would return regulatory certainty to Kansas, enable the development of reliable and affordable electricity, promote renewable energy and energy efficiency, and encourage job growth and investment.”

  • More on the web: "Rod Bremby's Action Drove Away the Refinery." Wichita Liberty.