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updated 02:37, Thu October 04, 2007

Kansas: Legislators Appoint Panel to Review Coal Plant Permit

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TOPEKA, Kan. (AP) -- Legislative leaders created a six-member panel Wednesday to look into why it's taking so long for the Department of Health and Environment to decide whether to grant a permit to Sunflower Electric Power Corp. to build two new coal-fired plants.

The review has taken more than 15 months, and legislative leaders want to know why. They say the $3.6 billion project in Finney County is too important to the Kansas economy and energy development to ignore.

"We do appreciate the fact that Health and Environment has been very deliberate. This is a critical issue and we want to make sure all the bases are covered. But with the time that has elapsed since the initial application, we feel it is time for us to at least look at process involved," said Senate President Steve Morris, a Hugoton Republican.

State law gives KDHE 18 months -- or until Dec. 1 -- to approve or deny the application for two new generators at Sunflower's Holcomb plant in southwest Kansas. But lawmakers say they have been told for months that a decision was imminent and they don't understand what has caused the delay.

KDHE did not immediately have a comment Wednesday. The agency previously has said that the issue is complicated, that it has received 650 written comments and took additional testimony during public hearings, all of which had to be reviewed. Also, two Lawrence environmentalists have sued the agency, hoping to force it to regulate CO2 emissions, although the federal government does not.

Much of the power from the plants would be exported to Colorado, Oklahoma and Texas. The first new unit would be finished in 2012 and the second one, in 2013.

"We're delighted to say the least," said Sunflower spokesman Steve Miller. "We're just really pleased to see that legislative leaders are taking an interest in this and moving us closer to answer on the permit."

Miller said delays or denial of the permit will force the cooperative to look to other states for building new plants to meet the demands. He said the demand within Kansas is being fueled by the needs of emerging ethanol plants across southwestern counties.

The panel will have three members each from the House and Senate, with two Republicans and one Democrat from each chamber. Morris and House Speaker Melvin Neufeld, an Ingalls Republican, both will be members of the panel. The other members are to be announced.

Neufeld said the possibility that the electric cooperatives may have to pull the project from Kansas if there are problems with the permit "is disturbing."

"This is a very high priority for legislative leadership. There has been a flurry of activity in the last two or three weeks and we feel like time is getting away. The sooner the better as far as us looking at this," Neufeld said.

Last month, 42 House Republicans issued a statement supporting the project and urging KDHE Secretary Rod Bremby to give immediate approval. Gov. Kathleen Sebelius, a Democrat, said Monday she personally oppose the project but is leaving the decision to Bremby.

The project has inspired intense opposition from environmentalists and protests from officials in other states, including New York and California. Critics contend a new plant will be a major source of carbon dioxide emissions, linked by most scientists to global warming.

Also, the project will increase Sunflower's generating capacity more than seven times. That's far more capacity, in theory, than its 122,000 customers would need, and most of the new power would be sold outside Kansas.

House Minority Leader Dennis McKinney said KDHE must consider several issues, including demand for the power and the effect on rates for consumers, as well as environmental impact.

"It's good to be deliberate to make sure the demand is there when the plants come on line," said McKinney, a Greensburg Democrat.

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