Energy policy in Kansas

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Energy policy in Kansas
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Quick facts
Energy department: Kansas Corporation Commission Energy Division[1]
State population: 2.9 million
Per capita income: $41,835
Energy consumption
Total energy consumption: 1,162 trillion BTU[2][3]
Per capita energy consumption: 405 million BTU
Energy spending
Total state energy spending: $14,876 million
Per capita energy spending: $5,179
Residential natural gas price: $10.85 per thousand cubic foot
Residential electricity price: 11.40 cents per kWh
See also
Energy on the ballot
Statewide fracking on the ballot
Local fracking on the ballot
Policypedia
Policypedia Energy logo.jpg
Energy Policy Project
Energy policy in the United States
Energy use in the United States
Energy terms and definitions
Energy policy in Kansas
Fracking in Kansas

Energy policy in Kansas depends on geography, natural energy resources, how electricity is generated, how much energy consumers use, politics and the influence of groups such as environmental and industry organizations. Decisions by policymakers, such as state and local governments, utilities and regulatory agencies, affect all citizens economically and environmentally, and are generally geared toward providing reliable, affordable energy. The cost of energy affects not only home heating and electricity bills, and thus disposable income, but also economic growth, including jobs, investment and the cost of doing business in the state.

How energy is produced and consumed also has an impact on the environment and pollution. Energy policy in Kansas works to incentivize renewable energy in the state despite the abundant amount of traditional energy resources in the state. As the infrastructure for producing and delivering renewable energy sources is not as advanced as it is for energy generation from traditional sources, these policies often require subsidies to make the produced energy affordable, and their effects are difficult to measure.

Energy policy involves tradeoffs between providing an affordable, consistent energy supply on the one hand, and limiting pollution and protecting the environment, on the other. How states attempt to balance these two differs between states, and often boils down to costs to consumers versus costs to the environment. This article provides general energy information about the state as the context within which energy policy is made, as well as information about major legislation and public and private groups that play a role in setting energy policy in the state.

See also: Energy policy in the United States for more information on energy policy.
See also: Fracking in Kansas

Energy overview

State facts

Below are quick facts about Kansas’s energy climate.

Kansas

  • is a net electricity importer.
  • has fossil fuels in the form of oil, natural gas andcoal.
  • has renewable energy in the form of wind and ethanol.
  • has the second highest wind energy potential in the nation, only behind Texas.
  • produces the ninth most crude oil in the nation.
  • oil makes up about two percent of the nation's total.[4]

In Kansas

  • the Hugoton is one of the largest natural gas fields in the United States.
  • eight percent of the energy in 2011 was produced from wind.
  • 74 percent of electricity in 2011 was produced from coal-fired plants.
  • the industrial sector, which includes manufacturing, is the largest energy consumer.
  • there are twelve ethanol plants.[4]

Available energy resources

Kansas has traditional energy resources in the form of oil, coal and natural gas. In 1892 oil]was found near Neodesha, Kansas, which was considered to be the first discovery of oil west of the Mississippi. Kansas is a major oil-refining state, and they typically account for about two percent of the nation's total. The Hugoton Gas Area, which is located within the border of three states, including Kansas, is the largest natural gas reserve in the United States. While coal was prevalent in Kansas in the late nineteenth-century, there is only one remaining coal mine in the state.[4]

Kansas produces the second most wind energy potential in the United States; only Texas produces more. Wind energy accounts for nearly all the renewable energy resources in the state. Kansas typically ranks in the top twelve in wind energy production. Solar energy production in Kansas has yet to be developed despite the fact that it is one of the sunniest states in the country. Kansas is one of the leading ethanol producers in the country. The ethanol production in the state generally comes from corn and milo. The states combined ethanol capacity is about 500 gallons from twelve active plants.[4]

Consumption and prices

Energy consumption in Kansas
KS energy sector usage chart.png

Legend[5]
     Transportation       Residential     Industrial       Commercial
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As shown on the pie chart in 2011, over one third of Kansas's energy use was in the industrial sector, including manufacturing. A quarter was consumed in the transportation sector. The residential and commercial sectors each consume about one-fifth of the state's total energy.

Most of the energy used in the state is from petroleum, followed by coal and natural gas. Petroleum is used primarily in the form of gasoline in Kansas, which is typically below the national average.[6][7] According to the EIA, the federal excise tax is 18.40 cents/gallon of gasoline and 24.40 cents/gallon of diesel fuel. In addition to that, Kansas collects a total tax of 25.03 cents on every gallon of gasoline and gasohol fuel, and 27.03 cents per gallon of diesel fuel, which ranks it at the 25th highest in the United States.[8][9]

Comparisons tables

The table below compares Kansas’s consumption and spending for energy, as well as prices for natural gas and electricity, and carbon emissions to those of Nebraska, which has similar population, resources and consumption needs because of climate and geography. Also given are the U.S. averages and the state rankings. All rankings are from highest to lowest, so, for example:

  • Kansas’s rank of 28th in carbon emissions means that carbon emissions are somewhat similar in Kansas and in Nebraska, which has a ranking of 37th.
  • Per capita income in Kansas is similar to Nebraska, which at 21st ranks 4 places above Kansas’s ranking of 25th in per capita income.
  • These two states are similarly ranked on total spending on energy.
  • Per capita energy consumption in Kansas (at 12th) is similar than in Nebraska (at seventh).
  • Per per capita spending in Kansas is similar to Nebraska because it ranks 14th to Nebraska’s ranking of 11.
Consumption and Expenditures Comparisons Summary
Type KansasNebraskaU.S. Figures
FigureU.S. Rank*FigureU.S. Rank*Totals
Population2.9 million341.9 million37313.9 million
Per Capita Income Average$41,83525$43,14321$42,693
Total Consumption1,162 trillion BTU30871 trillion BTU3397,301 quadrillion BTU
Per Capita Energy Consumption405 million BTU12473 million BTU7312 million BTU
Total Spending on Energy$14,867 million32$9,971 million35$1,394,088 million
Per Capita Spending on Energy$5,17914$5,41311$4,474
Price of Residential Natural Gas, dollar per thousand cubic feet$16.1824$8.7335$12.48
Price of Electricity, cents per kWh11.40259.934212.31
Total Carbon Dioxide Emissions, million metric tons (2010)752848375,631
*Rank is from highest to lowest.
See also: State Energy Rankings to compare all 50 states
Consumption of energy for heating homes in Kansas
Source Kansas 2011 U.S. average 2011
Natural gas 67.3% 49.5%
Fuel oil 0.1% 6.5%
Electricity 22.3% 35.4%
Liquid Petroleum Gases (LPG) 7.8% 5%
Other/none 2.4% 3.6%

Production and transmission

Kansas produced 780.1 trillion BTU of energy in 2011. Of that, nearly half came from natural gas. About 30 percent came from crude oil. Nuclear accounted for about one tenth. Coal, biofuels and what the U.S. Energy Information Administration classifies as 'other,' which is "assumed to equal consumption of all renewable energies except biofuels."[10]

Energy production by type in Kansas, 2011
Type Amount Generated
(trillion BTU)
% of State % of USA
Crude oil 240.7 30.86% 2.01%
Natural gas 356.8 45.74% 1.35%
Coal 0.8 0.1% 0%
Nuclear 76.6 9.82% 0.93%
Biofuels 61.8 7.92% 3.22%
Other 43.3 5.55% 0.61%

Electricity produced in Kansas is primarily from coal, which accounts for just over one half of the total. Nuclear and what the U.S. Energy Information Administration classifies as "other renewables" each account for just over one-fifth of electricity generation in Kansas. Petroleum accounts for a minimal amount of total electricity generation in Kansas. In Kansas, net electricity generation exceeds consumption making the state an electricity exporter.[4]

Where electricity comes from in Kansas[11]
Type Amount generated (MWh) % of state** % of U.S.**
Petroleum-fired 3 0.08% 0%
Coal-fired 2,121 53.53% 0%
Nuclear 875 22.08% 0%
Other renewables 849 21.43% 0%
Total net electricity generation 3,962 100% 0%
**Note: Because the U.S. Energy Information Administration (EIA) does not include all of a state's energy production in these figures, the EIA totals do not equal 100 percent. Instead, we have generated our own percentages.

Energy policy

Policy Issues
Kansas is not on track to reach the goal of renewable energy set by the state renewable portfolio standards (RPS) that requires investor-owned and cooperative utilities to obtain 20 percent of electricity from renewable sources by the year 2020.
See also: Fracking in Kansas

Energy policy is made, executed and influenced by many organizations, both public and private, and is codified in the laws and regulations of the state. Each state’s energy policy involves tradeoffs in which energy production and prices are weighed against environmental concerns and efficiency. According to the "2013 State Energy Efficiency Scorecard" published by the American Council for an Energy Efficient Economy (ACEEE), Kansas is tied with Alabama, Kentucky and South Carolina ranking 39th in energy efficiency with a score of 11.5 out of 50.[12] There are differing estimates about the economic impact of these mandates in terms of costs that may affect prices and jobs, as well as the impact on the environment and pollution. Thus, for example, there are many new studies of what is called the "rebound effect" which refers to the fact that "some of the theoretically estimated gains in energy efficiency will be eroded as consumers consume additional goods and services."[13][14]

Kansas is not on track to reach the goal of renewable energy set by the state renewable portfolio standard (RPS) that requires investor-owned and cooperative utilities to obtain 20 percent of electricity from renewable sources by the year 2020. Electricity prices are 40 cents per kilowatt hour higher in Kansas than in states with no mandatory renewable energy goals.[15] In 2010, The Kansas Corporation Commission created rules and regulations for administration of the state's Renewable Energy Portfolio Standard. This standard is not based on retail electricity sales but rather generating capacity, which can be from any of several renewable energy resources.[4][16][17][18]

Major legislation

  • K.S.A. 66-1256, (2009) or the "Renewable Energy Standards Act" instituted a Renewable Portfolio Standard RPS in the state of Kansas. "This statute requires the state's investor-owned and cooperative utilities to generate or purchase 10 percent of their electricity from eligible renewable resources in the years 2011-2015, 15 percent in the years 2016-2019, and 20 percent by 2020."[19]
  • Kansas Statute 58-3801 et seq. allows parties to enter voluntary solar easement agreements for the purpose of ensuring proper access to sunlight. These easements "must be expressed in writing and recorded with the register of deeds for that county."[20]
  • Kansas Statutes 66-1263, et seq. (2009) established "net metering for customers of investor-owned utilities in Kansas." The net metering applies to systems that have a rated capacity of 25 kilowatts or less for residential and 200 kilowatts or less for non-residential customers. It applies to Cloud County and Dodge City community colleges for systems with a capacity of less than 1.5 megawatts. It "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."[21]
  • Kansas Statute 66-117 (e) allows a return rate for capital investments for energy efficiency of 0.5 percent to 2 percent more than the previous rate. The Kansas Corporation Commission is in charge of considering proposals from utilities on a case-by-case basis.[22]

Government agencies and committees

Policypedia
Policypedia energy logo.PNG
State energy policy

State fracking policy

Energy policy terms

Fracking in the U.S.

Energy use in the U.S.

Energy policy in the U.S.


See also
Local fracking on the ballot

Statewide fracking on the ballot

  • The Energy Division of Kansas provides objective information to the citizens of Kansas and oversees programs concerning "energy conservation, energy efficiency and alternative energy."[25]

Major organizations

  • The Kansas Energy Information Network (KEIN) is a non-profit organization that was funded by state grants until 2006 and currently runs independently. It aims to provide renewable energy information for Kansas and surrounding areas.[27]
  • Midwest Energy News is a non-profit organization that provides news concerning energy changes in the Midwest United State. It was launched in 2010. It aims at " keeping stakeholders, policymakers and citizens informed of the important changes taking place as the Midwest shifts from fossil fuels to a clean energy system."[28]
  • The Kansas Association for Conservation & Environmental Education (KACEE) is a statewide non-profit association that "promotes and provides effective, non-biased and science-based environmental education for all Kansans." It consists of a variety of different organizations, agencies (both public and private), businesses and individuals.[29]

In the news

This section displays the most recent stories in a Google news search for the term "Kansas+Energy+Policy"

All stories may not be relevant to this page due to the nature of the search engine.

Kansas Energy News Feed

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See also

External links

References

  1. National Association of State Energy Officials', "Kansas," accessed March 9, 2014
  2. These figures come from the U.S. Environmental Information Administration State Profiles and Energy Estimates, Kansas Overview. Statistics for population and per capita income are for the year 2012; consumption and spending estimates are for 2011; and prices are for October 2013
  3. U.S. Energy Information Administration, “Kansas Overview,” accessed March 6, 2014
  4. 4.0 4.1 4.2 4.3 4.4 4.5 U.S. Energy Information Administration, Kansas Profile Analysis, December 18, 2013, accessed March 6, 2014
  5. This chart depicts the state's energy consumption as reported by the EIA for 2011. Click the image to enlarge.
  6. To compare current gasoline prices in Kansas to the U.S averages, go to GasBuddy.com
  7. [To compare current gasoline prices in Colorado to the U.S averages, go to http://www.gasbuddy.com/gb_retail_price_chart.aspx?city1=USA%20Average&city2=Kansas&city3=&crude=n&tme=60&units=us GasBuddy.com]
  8. U.S. Energy Information Administration, "Petroleum Marketing Monthly," February 2014, accessed March 6, 2014
  9. The ranking comes from the Tax Foundation website accessed March 6, 2014
  10. U.S. Energy Information Administration, “State Energy Data System, Production,” accessed March 7, 2014
  11. [These figures come from the EIA State Profiles and Energy Estimates http://www.eia.gov/state/?sid=KS U.S. Energy Information Administration, "Kansas Overview," accessed March 6, 2014]
  12. ACEEE “2013 State Energy Efficiency Scorecard,” accessed March 6, 2014
  13. International Risk Governance Council, "The Rebound Effect: Implications of Consumer Behavior for Robust Energy Policies," accessed March 3, 2014
  14. Scientific American, "How Bad Is the Rebound from Energy Efficiency Efforts?," May 21, 2013, accessed March 3, 2014
  15. Institute for Energy Research, "The Status of Renewable Energy Mandates in the States," accessed March 6, 2014
  16. According to a report called "The Status of Renewable Electricity Mandates in the States," by the free-market Institute for Energy Research, the cost of electricity in states with RPS were on average 38 percent higher in 2010 than in states without a RPS.
  17. Institute for Energy Research, "The Status of Renewable Electricity Mandates in the States," accessed March 24, 2014
  18. Manhattan Institute, "The High Cost of Renewable-Energy Mandates," February 2012
  19. Database of State Incentives for Renewable Energy, "Renewable Portfolio Standard," accessed March 7, 2014
  20. Database of State Incentives for Renewable Energy, "Solar Easement," accessed March 7, 2014
  21. Database of State Incentives for Renewable Energy, "Net Metering," accessed March 7, 2014
  22. State Energy Efficiency Policy Database, "Kansas Utility Policies," accessed March 6, 2014
  23. Kansas Legislature, "Standing Committees," accessed March 6, 2014
  24. Kansas Corporation Commission, "Electric Issues," accessed March 6, 2014
  25. Kansas Corporation Commission, "Energy Division," accessed March 6, 2014
  26. Kansas Code, "Chapter 32, Article 8, Section 1a," accessed August 3, 2013
  27. Kansas Energy Information Network, "Contact Info," accessed March 6, 2014
  28. Midwest Energy News, "About Midwest Energy News," accessed March 17, 2013
  29. Kansas Association for Conservation & Environmental Education, "Welcome to KACEE," accessed March 17, 2014