2020 Arkansas Code
Title 8 - Environmental Law
Chapter 3 - Water and Air Pollution Generally
Subchapter 2 - State Emission Plans — Procedures — Approval
§ 8-3-205. Assessing effects of state plan

(a) Before completing a state plan for regulating carbon dioxide emissions from covered electric generating units, the Division of Environmental Quality shall prepare a report that takes into account the factors specified in § 8-4-312 and the Clean Air Act, 42 U.S.C. § 7401 et seq., as applicable.

(b)

1. (1) In addition to the report specified in subsection (a) of this section, the division shall coordinate with the Arkansas Public Service Commission in the preparation of a report that assesses the effects of the state plan on the electric power sector, including without limitation:

   1. (A) The ability of the state to provide affordable electricity through diversified sources of electricity generation;

   2. (B) The type and amount of electric generating capacity within the state that is likely to withdraw from the state or switch to another fuel;

   3. (C) Stranded investment in electric generating and transmission capacity and other assets and infrastructure;

   4. (D) Potential risks to electric reliability within the state, including without limitation resource adequacy risks, transmission constraints, and natural gas supply and transmission adequacy; and

   5. (E)

      1. (i) The amount by which retail electricity and any replacement fuel prices within the state are forecast to increase.

      2. (ii) A rate impact assessment shall consider nonfuel costs, including generation, transmission, distribution, surcharges for renewable energy and energy efficiency, capital investment, upgrades to meet environmental requirements, utility profits, financing costs for new investments, unappreciated capital assets retired prematurely, and other nonfuel costs and surcharges, and the amount of funds contributed from all in-state taxpayers to local, state, and federal subsidies, grants, and credits to fund in-state electric generation sources, electric storage, and energy efficiency.

2. (2) The division shall further coordinate with the Arkansas Economic Development Commission in the preparation of a report that assesses the effects of the state plan on the electricity consumers within the state, including without limitation:

   1. (A) Disproportionate impacts of electricity and other replacement energy price increases on middle-income and lower-income households;

   2. (B) Employment within the state, including without limitation direct and indirect employment effects and jobs potentially lost within affected sectors of the state's economy;

   3. (C) Economic development within the state, including without limitation effects on manufacturing, commercial, and other sectors of the state's economy;

   4. (D) The competitive position of the state in relation to neighboring states and other economic competitors; and

   5. (E) State and local governments, including without limitation potential impacts resulting from changes in tax revenues and higher government outlays for electric service.

(c) The reports required by this section shall be included with any petition filed by the division to initiate rulemaking for rules that implement a state plan for regulating carbon dioxide emissions from covered electric generating units.