Wind energy bill breezes to select file

Sen. Cap Dierks

A measure that would encourage wind energy development was given first-round legislative approval April 26.

LB 629, sponsored by Sen. Cap Dierks of Ewing, is intended to create new economic development opportunities through rural community-based energy development, also known as C-BED.

As modified by a Natural Resources Committee amendment, the bill would:

• allow a C-BED project developer to negotiate a power purchase agreement with an electric utility;
• allow a C-BED project to have an equity partner so long as no more than 67 percent of the power purchase payments flow to the non-qualified owner;
• prohibit the transfer of a C-BED project, except for an inherited interest, from a qualified owner to a non-qualified owner for the term of the power purchase agreement, which would be 10 years as modified by a Dierks amendment;
• prohibit the granting of net energy billing for a C-BED project that is operating under a power purchase agreement; and
• require project approval by the state Power Review Board.

Under the bill, an electric utility would be responsible for encouraging the aggregation of C-BED projects located in the same general geographical area and requiring an owner to provide sufficient security to assure performance under the power purchase agreement.

Electric utilities that determine the need to construct new renewable generation facilities would be required to examine the feasibility of using C-BED projects to meet that need. C-BED developers would be required to provide property owners on whose property a wind turbine would be located an opportunity to invest in projects.

Electric utilities would not be required to enter into a power purchase agreement with a C-BED project. Also, the bill would limit a utility's power of eminent domain to acquire a C-BED project if the utility has a contract to purchase power from such a facility for a period of at least 10 years.

Dierks said Nebraska ranks sixth in the nation for wind energy potential.

"However, we have been slow to capitalize on this clean, available energy source," he said.

LB 629 is based on a model law in Minnesota, but was tailored to accommodate Nebraska's unique public power system, he said.