Arkansas energy and electricity

Natural-gas share is the portion of electricity generated at Arkansas facilities supplied by natural gas. Natural-gas output is the numerator and total in-state generation is the denominator. Policies concerning natural-gas or competing generation technologies can concern this mix; in-state generation differs from electricity consumed in the state. Procurement targets and authorizations are distinct from operating plants or measured output. This connection does not establish causation. Actions after the measurement period cannot explain the earlier observed value.

Retained Arkansas evidence context: Natural-gas share of in-state electricity generation. This record’s connection to the topic does not establish an effect on the measured result.

2. Commission review and comment for covered agency actions Section 215 of the Federal Power Act (16 U.S.C. 824o) is amended— (1) in subsection (g)— (A) by striking The ERO and inserting the following: (1) In general The ERO ; and (B) by adding at the end the following: (2) Annual long-term assessment The assessments under paragraph (1) shall include an annual long-term assessment, which shall include— (A) an analysis of the ability of the bulk-power system to supply sufficient electric energy to maintain an adequate level of reliability, taking into account— (i) generation resource mix; (ii) transmission development; and (iii) electric energy demand trends; (B) an analysis of— (i) the risk of future electric energy supply shortfalls under normal and extreme weather conditions; and (ii) the risk of any such shortfalls within each region of the bulk-power system; and (C) a determination of whether additional generation resources are necessary to supply sufficient electric energy to maintain an adequate level of reliability during the assessment period. (3) Notice of generation inadequacy In conducting a long-term assessment under paragraph (2), if the ERO determines that the bulk-power system is at risk of not having adequate generation resources to supply sufficient electric energy to maintain an adequate level of reliability, the ERO shall publicly notify the Commission that the bulk-power system is in a state of generation inadequacy. (4) Data collection To conduct a long-term assessment under paragraph (2), the ERO may collect information and data from users, owners, and operators of the bulk-power system. ; (2) by redesignating subsections (h) through (k) as subsections (i) through (l), respectively; and (3) by inserting after subsection (g) the following: (h) Commission review and comment for covered agency actions (1) Definitions In this subsection: (A) Covered agency action The term covered agency action means a regulation that— (i) relates to, or otherwise directly affects, any generation resource in the bulk-power system; and (ii) on the date on which the applicable Federal agency receives notice from the Commission under paragraph (2)— (I) is under development to be proposed; or (II) is otherwise under consideration in a rulemaking proceeding. (B) Federal agency The term Federal agency means an Executive department (as defined in section 101 of title 5, United States Code) or any other Executive agency the head of which holds a Cabinet-level position. (2) Notice to Federal agencies If the ERO notifies the Commission under subsection (g)(3) that the bulk-power system is in a state of generation inadequacy, the Commission shall promptly notify the Department of Energy, the Environmental Protection Agency, and any other Federal agency the Commission determines appropriate of that state of generation inadequacy. (3) Submission of covered agency actions to the Commission (A) In general Not later than the applicable date described in subparagraph (B), the head of each Federal agency that receives a notification under paragraph (2) shall submit to the Commission for review and comment any covered agency action of the Federal agency. (B) Date described The date referred to in subparagraph (A) is— (i) the first date on which the applicable covered agency action is provided to the Office of Management and Budget or any other Federal agency for review and comment; (ii) if the applicable covered agency action is not provided to the Office of Management and Budget or any other Federal agency for review and comment, the date that is 90 days before the date on which the covered agency action is published in the Federal Register or otherwise made available for public inspection or comment; or (iii) if, as of the date on which the Federal agency receives the applicable notification under paragraph (2), the covered agency action has already been provided to the Office of Management and Budget or any other Federal agency for review and comment, or has already been published in the Federal Register or otherwise made available for public inspection or comment, the date that is 60 days after the date on which the Federal agency received the notification. (4) Commission comments The Commission, in consultation with the ERO and transmission organizations, shall, by order, provide to the Federal agency head that submitted to the Commission a covered agency action under paragraph (3)— (A) comments on the covered agency action, which may include an assessment of the effect of the covered agency action on rates, terms, and conditions for services pursuant to the authority of the Commission under sections 201 and 206; and (B) if applicable, recommendations for modifications to the covered agency action to prevent a significant negative impact on the ability of the bulk-power system to supply sufficient electric energy to maintain an adequate level of reliability. (5) Agency response The head of a Federal agency may not finalize a covered agency action that is submitted to the Commission under paragraph (3) until— (A) the agency head responds in writing to the Commission with an explanation of how the agency head modified, or why the agency head determined not to modify, the covered agency action in response to any comments and recommendations provided by the Commission under paragraph (4); and (B) the Commission determines that the covered agency action is not likely to have a significant negative impact on the ability of the bulk-power system to supply sufficient electric energy to maintain an adequate level of reliability. (6) Public availability of comments and responses A Federal agency head shall include any comments, recommendations, and responses relating to the covered agency action under paragraphs (4) and (5) in— (A) any submission of the covered agency action to the Federal Register for publication; and (B) any other place in which the covered agency action is otherwise made available for public inspection or comment. .

Natural-gas share is the portion of electricity generated at Arkansas facilities supplied by natural gas. Natural-gas output is the numerator and total in-state generation is the denominator. Policies concerning natural-gas or competing generation technologies can concern this mix; in-state generation differs from electricity consumed in the state. Procurement targets and authorizations are distinct from operating plants or measured output. The proposal changes incentives for competing electricity generation and therefore concerns the denominator of natural gas’s share, without establishing measured output. This connection does not establish causation or a change in the earlier measured value.

Retained Arkansas evidence context: Natural-gas share of in-state electricity generation · Gulf Coast regular gasoline price. This record’s connection to the topic does not establish an effect on the measured result.

1.Temporary suspension of clean electricity production credit(a)In generalSection 45Y of the Internal Revenue Code of 1986 is amended by adding at the end the following:(i)Suspension during fiscal years 2026 and 2027This section shall not apply with respect to any electricity produced during the period beginning on October 1, 2025, and ending on September 30, 2027..(b)Transfer to SPR petroleum accountThe Secretary of the Treasury shall deposit into the SPR Petroleum Account established under section 167(a) of the Energy Policy and Conservation Act (42 U.S.C. 6247(a)) amounts equal to the increase in revenues to the Treasury by reason of the amendment made by subsection (a).

Natural-gas share is the portion of electricity generated at Arkansas facilities supplied by natural gas. Natural-gas output is the numerator and total in-state generation is the denominator. Policies concerning natural-gas or competing generation technologies can concern this mix; in-state generation differs from electricity consumed in the state. Procurement targets and authorizations are distinct from operating plants or measured output. This connection does not establish causation. Actions after the measurement period cannot explain the earlier observed value.

Retained Arkansas evidence context: Natural-gas share of in-state electricity generation. This record’s connection to the topic does not establish an effect on the measured result.

23-18-1302. Definitions. As used in this subchapter: (1) “Dispatchable” means a source of electrical power generation or biomass energy that is: (A) Available on demand; (B) Not intermittent; and (C) Can either: (i) Be adjusted to increase or decrease its power output upon request of a power grid operator or otherwise upon demand or request of a power grid operator; or (ii) Have its power output adjusted in response to market or system needs; (2) "Dispatchable electric generation facility" means a facility that uses water, coal, natural gas, geothermal, biomass, or nuclear power, or a combination of equivalent fuels and technologies to generate dispatchable, reliable electricity to provide to end users; (3) "Electric generation asset" means a plant, facility, As Engrossed: S4/7/25 S4/14/25 SB596 5 04-14-2025 19:32:40 ANS459 equipment, or system that converts nonelectrical energy into electricity; (4) "Intermittent" means: (A) A source of electrical power generation from a solar photovoltaic, solar thermal heating, concentrating solar thermal collector, or other solar energy collection or generation system; (B) A source of electrical power that generates energy by harnessing wind power or energy, whether through a turbine or other device; (C) Anaerobic digestion or combined heat and power from solar, wind, or anaerobic digestion sources; (D) Any short-duration energy storage, which includes any method of storing generated electricity for later dispatch to the power grid, whether alone or in conjunction with any other intermittent sources described in this subdivision (4), that is equivalent to less than forty-eight (48) hours of the average peak generation of the unit the short-duration energy storage is used to offset; and (E) Conventional hydropower and pumped storage hydropower, unless they are capable of providing energy on demand, in which case they shall be deemed to be dispatchable; (5) “Public utility” means the same as defined in § 23-1-101; (6) "Reliability" means having adequate dispatchable electric generation capacity to safely deliver electrical energy in the quantity, with the quality, and at a time that public utility customers demand; (7) "Resilience" means having the ability to quickly and effectively respond to and recover from events that compromise power grid reliability; (8) "Retirement" means the closure or the complete and permanent cessation of operations of a dispatchable electric generation facility; and (9) "Secure" means to harden to a reasonable extent against an attack, including a cyberattack or a kinetic attack, or an extreme weather event. 23-18-1303. Retirement of dispatchable electric generation facilities. (a)(1) Notwithstanding any provision of law to the contrary, the Arkansas Public Service Commission may approve or deny the retirement of a dispatchable electric generation facility owned by a public utility. (2) Before retiring a dispatchable electric generation facility, As Engrossed: S4/7/25 S4/14/25 SB596 6 04-14-2025 19:32:40 ANS459 a public utility shall: (A) Apply to the commission for an order approving the retirement; and (B) Give the commission thirty-days' notice of the application. (3) The application shall include a statement certifying the applicant's compliance with the requirements of this subchapter. (4) The commission shall enter an order within one hundred eighty (180) days of receiving an administratively complete application to approve the application for retirement to: (A) Approve the application for retirement; (B) Approve the application for retirement with conditions; or (C) Deny the application for retirement. (b)(1) There is a rebuttable presumption against the retirement of a dispatchable electric generation facility. (2) The commission shall not approve the retirement of a dispatchable electric generation facility, authorize a surcharge for the decommissioning of the dispatchable electric generation facility, or take any other action that authorizes or allows for the recovery of costs for the retirement of a dispatchable electric generation facility, including without limitation any stranded asset recovery, unless the presumption under subdivision (b)(1) of this section is rebutted by evidence sufficient for the commission to find that the retirement is in the public interest, including without limitation evidence that: (A) The public utility will replace the retired dispatchable electric generation facility with new electric generation assets that: (i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area; (ii) Maintain or improve the reliability and resilience of the power grid; (iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and (iv) Have the same or higher capacity value and net As Engrossed: S4/7/25 S4/14/25 SB596 7 04-14-2025 19:32:40 ANS459 capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service; (B) The retirement will not harm the public utility's ratepayers by causing the public utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the dispatchable electric generation facility proposed for retirement in compliance with applicable law; (C) The decision to retire the dispatchable electric generation facility is not the result of any financial incentives or benefits offered by a United States Government agency; and (D) The public utility will not commence retirement or decommissioning of the electric generating unit until the replacement generating capacity meeting the requirements of subdivision (b)(2)(A) of this section is fully constructed, permitted, and in operation, unless the public utility can demonstrate that it is necessary under the circumstances to commence retirement or decommissioning of the existing electric generating unit earlier. (c) At a minimum, the public utility shall provide the commission with evidence of all known direct and indirect costs of retiring the dispatchable electric generation facility and demonstrate that cost savings will result to customers as a result of the retirement of the dispatchable electric generation facility. (d)(1) Under the commission's report under § 23-18-1104, the commission shall prepare and submit an annual supplemental report to the Joint Committee on Energy no later than December 1 of each year in which the commission issues an order on an application under this subchapter. (2) The annual supplemental report required under subdivision (d)(1) of this section shall include: (A) The number of applications by public utilities to retire dispatchable electric generation facilities, the nameplate capacity of each of the dispatchable electric generation facilities, and whether the application was approved, approved with conditions, or denied; (B) The impact of any commission-approved retirement or retirement with conditions of a dispatchable electric generation facility on the: (i) State's electric generation fuel mix; As Engrossed: S4/7/25 S4/14/25 SB596 8 04-14-2025 19:32:40 ANS459 (ii) Required capacity reserve margins for the public utility; (iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and (iv) Need for additional purchase power or capacity reserve arrangements; and (C) Whether or not the retirement or retirement with conditions resulted in stranded costs for the ratepayer that will be recovered by the public utility through a surcharge or some other separate charge on the ratepayer's bill. (e) This section is applicable to a dispatchable electric generation facility that is one hundred megawatts (100 MW) or larger located in Arkansas. (f) This subchapter does not apply to the retirement or repowering of a dispatchable electric generation facility under any settlement, consent decree, or other resolution of any litigation or legal proceeding executed or ordered before the effective date of this subchapter. SECTION 3. EMERGENCY CLAUSE. It is found and determined by the General Assembly of the State of Arkansas that the continued unabated retirement of needed electric generating resources threatens to harm employment, tax revenue, and utility rates and is creating a crisis with respect to the state's ability to meet current and projected future energy demands; that this act will manage the retirement of needed electric generating resources for this state; and that this act is immediately necessary because continued electric generating resources are necessary for employment, tax revenue, and regular utility rates. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto. As Engrossed: S4/7/25 S4/14/25 SB596 9 04-14-2025 19:32:40 ANS459

Natural-gas share is the portion of electricity generated at Arkansas facilities supplied by natural gas. Natural-gas output is the numerator and total in-state generation is the denominator. Policies concerning natural-gas or competing generation technologies can concern this mix; in-state generation differs from electricity consumed in the state. Procurement targets and authorizations are distinct from operating plants or measured output. This connection does not establish causation. Actions after the measurement period cannot explain the earlier observed value.

Retained Arkansas evidence context: Natural-gas share of in-state electricity generation. This record’s connection to the topic does not establish an effect on the measured result.

23-18-1302. Definitions. As used in this subchapter: (1) “Dispatchable” means a source of electrical power generation or biomass energy that is: (A) Available on demand; (B) Not intermittent; and (C) Can either: (i) Be adjusted to increase or decrease its power output upon request of a power grid operator or otherwise upon demand or request of a power grid operator; or (ii) Have its power output adjusted in response to market or system needs; (2) "Dispatchable electric generation facility" means a facility that uses water, coal, natural gas, geothermal, biomass, or nuclear power, or a combination of equivalent fuels and technologies to generate dispatchable, reliable electricity to provide to end users; (3) "Electric generation asset" means a plant, facility, As Engrossed: S4/7/25 S4/14/25 SB596 5 04-14-2025 19:32:40 ANS459 equipment, or system that converts nonelectrical energy into electricity; (4) "Intermittent" means: (A) A source of electrical power generation from a solar photovoltaic, solar thermal heating, concentrating solar thermal collector, or other solar energy collection or generation system; (B) A source of electrical power that generates energy by harnessing wind power or energy, whether through a turbine or other device; (C) Anaerobic digestion or combined heat and power from solar, wind, or anaerobic digestion sources; (D) Any short-duration energy storage, which includes any method of storing generated electricity for later dispatch to the power grid, whether alone or in conjunction with any other intermittent sources described in this subdivision (4), that is equivalent to less than forty-eight (48) hours of the average peak generation of the unit the short-duration energy storage is used to offset; and (E) Conventional hydropower and pumped storage hydropower, unless they are capable of providing energy on demand, in which case they shall be deemed to be dispatchable; (5) “Public utility” means the same as defined in § 23-1-101; (6) "Reliability" means having adequate dispatchable electric generation capacity to safely deliver electrical energy in the quantity, with the quality, and at a time that public utility customers demand; (7) "Resilience" means having the ability to quickly and effectively respond to and recover from events that compromise power grid reliability; (8) "Retirement" means the closure or the complete and permanent cessation of operations of a dispatchable electric generation facility; and (9) "Secure" means to harden to a reasonable extent against an attack, including a cyberattack or a kinetic attack, or an extreme weather event. 23-18-1303. Retirement of dispatchable electric generation facilities. (a)(1) Notwithstanding any provision of law to the contrary, the Arkansas Public Service Commission may approve or deny the retirement of a dispatchable electric generation facility owned by a public utility. (2) Before retiring a dispatchable electric generation facility, As Engrossed: S4/7/25 S4/14/25 SB596 6 04-14-2025 19:32:40 ANS459 a public utility shall: (A) Apply to the commission for an order approving the retirement; and (B) Give the commission thirty-days' notice of the application. (3) The application shall include a statement certifying the applicant's compliance with the requirements of this subchapter. (4) The commission shall enter an order within one hundred eighty (180) days of receiving an administratively complete application to approve the application for retirement to: (A) Approve the application for retirement; (B) Approve the application for retirement with conditions; or (C) Deny the application for retirement. (b)(1) There is a rebuttable presumption against the retirement of a dispatchable electric generation facility. (2) The commission shall not approve the retirement of a dispatchable electric generation facility, authorize a surcharge for the decommissioning of the dispatchable electric generation facility, or take any other action that authorizes or allows for the recovery of costs for the retirement of a dispatchable electric generation facility, including without limitation any stranded asset recovery, unless the presumption under subdivision (b)(1) of this section is rebutted by evidence sufficient for the commission to find that the retirement is in the public interest, including without limitation evidence that: (A) The public utility will replace the retired dispatchable electric generation facility with new electric generation assets that: (i) Are dispatchable by either the public utility or the regional transmission organization or independent system operator responsible for balancing load within the public utility's service area; (ii) Maintain or improve the reliability and resilience of the power grid; (iii) Maintain the minimum reserve capacity requirement established by the public utility's reliability coordinator; and (iv) Have the same or higher capacity value and net As Engrossed: S4/7/25 S4/14/25 SB596 7 04-14-2025 19:32:40 ANS459 capability, unless the public utility can demonstrate that the capacity value and net capability is not necessary to provide reliable service; (B) The retirement will not harm the public utility's ratepayers by causing the public utility to incur any net incremental costs to be recovered from ratepayers that could be avoided by continuing to operate the dispatchable electric generation facility proposed for retirement in compliance with applicable law; (C) The decision to retire the dispatchable electric generation facility is not the result of any financial incentives or benefits offered by a United States Government agency; and (D) The public utility will not commence retirement or decommissioning of the electric generating unit until the replacement generating capacity meeting the requirements of subdivision (b)(2)(A) of this section is fully constructed, permitted, and in operation, unless the public utility can demonstrate that it is necessary under the circumstances to commence retirement or decommissioning of the existing electric generating unit earlier. (c) At a minimum, the public utility shall provide the commission with evidence of all known direct and indirect costs of retiring the dispatchable electric generation facility and demonstrate that cost savings will result to customers as a result of the retirement of the dispatchable electric generation facility. (d)(1) Under the commission's report under § 23-18-1104, the commission shall prepare and submit an annual supplemental report to the Joint Committee on Energy no later than December 1 of each year in which the commission issues an order on an application under this subchapter. (2) The annual supplemental report required under subdivision (d)(1) of this section shall include: (A) The number of applications by public utilities to retire dispatchable electric generation facilities, the nameplate capacity of each of the dispatchable electric generation facilities, and whether the application was approved, approved with conditions, or denied; (B) The impact of any commission-approved retirement or retirement with conditions of a dispatchable electric generation facility on the: (i) State's electric generation fuel mix; As Engrossed: S4/7/25 S4/14/25 SB596 8 04-14-2025 19:32:40 ANS459 (ii) Required capacity reserve margins for the public utility; (iii) Need for capacity additions or expansions at new or existing facilities as a result of the retirement; and (iv) Need for additional purchase power or capacity reserve arrangements; and (C) Whether or not the retirement or retirement with conditions resulted in stranded costs for the ratepayer that will be recovered by the public utility through a surcharge or some other separate charge on the ratepayer's bill. (e) This section is applicable to a dispatchable electric generation facility that is one hundred megawatts (100 MW) or larger located in Arkansas. (f) This subchapter does not apply to the retirement or repowering of a dispatchable electric generation facility under any settlement, consent decree, or other resolution of any litigation or legal proceeding executed or ordered before the effective date of this subchapter. SECTION 3. EMERGENCY CLAUSE. It is found and determined by the General Assembly of the State of Arkansas that the continued unabated retirement of needed electric generating resources threatens to harm employment, tax revenue, and utility rates and is creating a crisis with respect to the state's ability to meet current and projected future energy demands; that this act will manage the retirement of needed electric generating resources for this state; and that this act is immediately necessary because continued electric generating resources are necessary for employment, tax revenue, and regular utility rates. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto. As Engrossed: S4/7/25 S4/14/25 SB596 9 04-14-2025 19:32:40 ANS459