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Committee approves bill preventing local bans on energy sources, citing PSC authority
Summary
SB137 would bar local governments from enacting ordinances restricting residents' choice of energy source; PSC chairman Ted Thomas and sponsors said the PSC's authority over the resource mix and the statewide nature of distribution networks justify the preemption. The committee passed the bill by voice vote.
Senate Bill 137, presented by Senator Irvin, would prohibit local government ordinances that limit a resident's or property owner's choice of energy source. Senator Irvin framed the bill as protecting energy choice for Arkansans, especially those in rural areas that may lack alternatives.
Ted Thomas, chairman of the Arkansas Public Service Commission, told the committee that the PSC has authority over the resource mix for gas distribution and that local bans could remove options needed for low-cost or large-scale solutions, which could make addressing climate or supply challenges more expensive for consumers. Thomas emphasized the networked nature of gas distribution and said the PSC needs flexibility to consider options that rely on the statewide network, including future hydrogen uses.
Committee members who raised local-control concerns were told the bill seeks alignment between decision authority and cost responsibility: local governments do not set rates or bear network costs, while the PSC does. A senator noted prior debates in the state over grid fees for distributed generation and cautioned that distribution networks and cost-shift mechanisms have been used previously to address similar issues. The committee voted by voice to pass SB137; the transcript records the motion, a second and the voice vote but not a roll-call tally.
The committee adjourned after completing the three bills and said House Bill 1027 will be considered at a later meeting.
