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Arkansas lawmakers consider other funding methods as they abandon sixth prison appropriation vote
Arkansas lawmakers consider other funding methods as they abandon sixth prison appropriation vote

Yahoo

time11-04-2025

  • Politics
  • Yahoo

Arkansas lawmakers consider other funding methods as they abandon sixth prison appropriation vote

Sen. Jonathan Dismang, R-Searcy, asks a question during a meeting of the Arkansas Senate on April 10, 2025. (Antoinette Grajeda/Arkansas Advocate) After five failed votes, a $750 million prison appropriation bill appears dead for the legislative session, and state lawmakers are considering other methods for securing the needed funding to build the 3,000-bed facility in Franklin County. The project has been controversial since it was announced in October, due to concerns over transparency, cost, infrastructure and an available workforce. Supporters of building the new state prison, including Gov. Sarah Huckabee Sanders, have said it's necessary to address overcrowding in county jails. Searcy Republican and Senate Bill 354 sponsor Sen. Jonathan Dismang said Thursday afternoon that he didn't see the point in continuing to vote because his legislation didn't have the 27 votes needed to clear the Arkansas Senate. Bills typically need a simple majority to advance in the Legislature, but appropriation bills require a three-fourths majority, or 27 votes in the 35-member Senate. 'We're getting toward the end of the session, really today would have been the last day I think to try to clear it through the House,' Dismang said. ' I'm sure that we can jump through some procedural maneuvers if something changes over the weekend, but I don't believe that we'll be passing that appropriation.' House Speaker Rep. Brian Evans, R-Cabot, told the Advocate early Thursday evening that he thinks the Senate can get 27 votes next week since some members' questions have been answered. 'I think they're very close to the 27,' he said. 'There might have been an issue that came up this morning where a couple of them just said 'Hey can we get another question or two answered?'… I still feel confident that they'll get those votes on Monday and so the bill will come down here Tuesday, and we're very optimistic that we have the votes here to pass it.' Dismang said he expects 'quite a bit of movement' over the summer on the estimated $825 million project because the Legislature set aside $75 million in 2022 that has already been appropriated to the Arkansas Department of Corrections. Following the state's purchase of 815 acres near Charleston last year for nearly $3 million, the corrections board has moved forward with the project by hiring a construction management company and seeking proposals from architectural firms and contractors. The Legislature also set aside another $330 million for the project that hasn't been appropriated yet. State lawmakers have the ability to release some additional funding if needed, but Dismang said he doesn't expect the Legislature will have to take more action until they return for the fiscal session next spring. Even if SB 354 was approved, Dismang said funding was always going to be released in stages, with the governor requesting various amounts by letter. The requests would require a three-fifths majority approval by the Arkansas Legislative Council, he said. The Saline Courier reported that Sen. Alan Clark, R-Lonsdale, said he anticipated the governor would call a special session to secure the funding, but Dismang said Thursday that's not the case. Prison bill gains some traction in Arkansas Senate, but not enough to advance 'We're not going to waste money on a special session,' he said. 'We had our ability to do something here. A minority of members decided they did not want to, and so this is where we are.' Failing to approve SB 354 will not be detrimental to the project, according to Dismang, who said the experience over the last few weeks was good for the executive branch and the legislative body. 'We have members that had questions, but weren't asking their questions to anyone. We had an executive branch that was not probably reaching out as fully as they should,' he said. 'I think the last two weeks that's improved greatly. You saw that with some movement of votes and probably would have had further movement if we'd called for another vote — just not 27.' Sen. John Payton, R-Wilburn, initially voted against SB 354, but joined 20 of his colleagues in voting for the bill Tuesday after he said the executive branch addressed some of his concerns with the project, such as staffing. Green Forest Republican Sen. Bryan King, an outspoken critic of the project who seemed unlikely to be swayed, said Thursday he was pleased by the decision to halt voting on the appropriation bill. 'I am happy for the citizens of Arkansas and hope the Franklin County mega-prison scam is stopped before it gets past the point of no return,' King said in a text message. 'Arkansas can do better by hiring more public safety officers to reduce crime and address overcrowding by building facilities in a more financially responsible way.' No meetings are scheduled for Friday, but lawmakers will return to the Capitol Monday for the remaining days of the session, which is expected to end Wednesday. Reporter Tess Vrbin contributed to this story. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Stalled energy bill advances out of Arkansas Senate
Stalled energy bill advances out of Arkansas Senate

Yahoo

time13-03-2025

  • Business
  • Yahoo

Stalled energy bill advances out of Arkansas Senate

Republican Sens. Jimmy Hickey and Missy Irvin listen at their colleagues cast their vote for Senate Bill 307 on March 12, 2025. (Antoinette Grajeda/Arkansas Advocate) Arkansas lawmakers on Wednesday approved an amended bill to streamline the process for building electricity-generating plants in the state, one week after rejecting the original proposal. Lead sponsor Sen. Jonathan Dismang, R-Searcy, said Senate Bill 307 aims to mitigate the spike in rates expected as a result of purchasing or generating new energy that will be needed for the state's growing population and the closure of at least two coal-fired plants in the next five years. After the Arkansas Senate rejected SB 307 last Wednesday, senators on Thursday approved a motion by Sen. Jimmy Hickey, R-Texarkana, to request recommendations on the bill from the Arkansas Public Service Commission. Hickey told the Advocate the utility commission's analysis 'mostly definitely helped' and resulted in 12 pages of amendments for the 63-page bill. 'It's a very complicated subject, as we keep saying,' he said. 'I know that I put the PSC probably in an untenable position because you've got legislators wanting certain things and the other ones the other way, but again, they're our regulatory agency who's been doing it. So I just felt that they had to weigh in.' Arkansas lawmakers request energy bill recommendations from utility commission Hickey helped craft one 'important' amendment that states if at any time during the construction process the commission finds any costs were not 'prudently incurred,' the PSC shall order those costs to be refunded to customers through bill credits. 'Just thought that was going to be an extra good guardrail or another good tool for them to keep everybody on the up and up,' he said. The process outlined in SB 307 is already being implemented in surrounding states, though Dismang said he's not sure they have 'this extensive amount of parameters in place.' Dismang explained last week that under the current model, interest is accrued during construction and then capitalized, creating 'a significant jump in rates' once the power plant is operational. SB 307 recommends another option that would allow utilities to begin recovering costs incrementally during construction by enabling 'a strategic investment' that he said would result in a 'lower, long-term recovery rate for consumers.' Arkansas could 'pretend like we don't have to do something,' but inaction would leave the state 'at the mercy' of neighboring states that have decided to create new power, Dismang said. 'I want Arkansas to be a leader in every possible way, and this sets us up to be a leader,' he said. 'Rates are going to go up because we have to create new power or we're going to have to buy new power from someone else. I want to be in control of that.' Sen. Mark Johnson, R-Ferndale, who noted he supports developing new sources of generation, said Dismang's amended bill was 'better, but it still ain't good' because it doesn't adequately protect ratepayers. Johnson also said he's not opposed to economic development and it's 'insulting' to imply otherwise about people who question the bill's proposed financing method. 'I believe the economic development aspect of this legislation is effectively a Trojan horse, a vehicle to disguise the weakening of the Public Service Commission's ability to protect consumers and to determine a fair rate of concern,' he said. Proponents of the bill have said it will create jobs by making Arkansas more competitive in attracting industry to the state, such as data centers that may require a lot of energy to operate. Speaking in favor of SB 307, Sen. Dave Wallace, R-Leachville, said the state will soon lose power from coal-powered plants that helped Arkansas weather an ice storm a few years ago, while residents in neighboring states struggled with long-term outages. 'We're here to protect the people of Arkansas. Sometimes we have to make hard choices,' Wallace said. 'If we don't have those power plants, if we don't do something now, two years from now is going to be too late.' SB 307 passed by a vote of 23-9. Republican Sens. Hickey of Texarkana and Ricky Hill of Cabot voted for the bill Wednesday after voting against it last week. Sens. Steve Crowell of Magnolia, Jim Dotson of Bentonville and Reginald Murdock of Marianna also supported SB 307 after not voting last week. Sen. Dan Sullivan, R-Jonesboro, switched his present vote to one of support. The bill's emergency clause, which would allow the law to go into effect immediately, failed to garner enough support on the first try before reaching the 24-vote threshold on a second vote. SB 307 will next be debated by a House committee. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Amendment may bolster Arkansas legislation restructuring electrical utilities
Amendment may bolster Arkansas legislation restructuring electrical utilities

Yahoo

time07-03-2025

  • Business
  • Yahoo

Amendment may bolster Arkansas legislation restructuring electrical utilities

LITTLE ROCK, Ark. – A 62-page legislation package to impact Arkansans who pay for electricity continues to raise questions in the Senate. Senate Bill 307 would impact the relationship between electrical utilities and the Public Service Commission (PSC) from the current model. Called the Generate Arkansas Jobs Act of 2025, it would alter long-standing precedent, in turn impacting electric bills. Bill in Arkansas legislature intends to promote expansion of electric power infrastructure, could cause rate increase Sponsor Sen. Jonathan Dismang (R-Searcy) pointed out that, as the bill was introduced, Arkansas was about to lose two of its five coal-fired power plants by 2030, leading to a loss of capacity for the state. Less capacity means that the electricity available will be worth and cost more, leading to higher electric bills for consumers. Under the bill's terms, utilities could bill consumers as new projects—such as those replacing coal plants—as they are constructed, leading to an incremental increase in electricity costs as a project progresses. Under the current model, consumers are charged after a project is completed, leading to a sticker-shock-inducing sudden jump in the electric bill. Petit Jean Electric customers seek explanation for jump in bills Senators who opposed the bill in a Wednesday vote, where it failed 17-11 with four abstaining, were concerned that under the bill's terms, oversight would be taken from the PSC and left with the utilities, a point Dismang disputed. Through a Senate procedure, Dismang reintroduced the legislation after it failed. On Thursday, Sen. Jimmy Hinkey (R-Texarkana), who had voted against the bill, introduced a Senate amendment for the PSC to review the bill and submit its considerations to the Senate by 9 a.m. Monday. After the amendment had passed, Hinkey told the chamber that the bill was, in his opinion, one of the bigger pieces of legislation the body had ever faced. He also said that a Committee of the Whole should be considered for its next hearing. The rarely-used Committee of the Whole allows both houses to participate in the debate and bring in outside people as witnesses. Arkansas electric utility bill fails Senate vote, due to return later The amendment was passed unanimously by voice vote. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Arkansas Senate rejects legislation to increase energy production, attract industry
Arkansas Senate rejects legislation to increase energy production, attract industry

Yahoo

time06-03-2025

  • Business
  • Yahoo

Arkansas Senate rejects legislation to increase energy production, attract industry

Sen. Jonathan Dismang, R-Searcy, presents Senate Bill 307 to the Arkansas Senate on March 5, 2025. (Antoinette Grajeda/Arkansas Advocate) A bill that would alter the process for creating new electricity-generating plants to meet the state's anticipated energy needs stalled in the Arkansas Senate Wednesday. As a result of at least two of the state's coal-fired plants going offline by the end of 2030, Sen. Jonathan Dismang, Searcy Republican and lead sponsor of Senate Bill 307, said energy rates are expected to increase because Arkansas will have to buy energy from an out-of-state utility or build new sources of energy. The goal of the 62-page bill, also known as the Generating Arkansas Jobs Act of 2025, is to mitigate those increases, Dismang said. 'This is a new path forward for us to create the energy that we have to create that will ultimately, because of that new generation that is required, be at a lesser cost of generation than it would be under the old model — the old model that does not have the roadblocks and the reviews and the approvals that this does at multiple steps in the process,' he said. Renewable energy needed for Arkansas' future, industry experts tell lawmakers Under the current model, Dismang said, interest is accrued during construction and then capitalized, creating 'a significant jump in rates' once the power plant is operational. SB 307 recommends another option that would allow utilities to begin recovering costs incrementally during construction by enabling 'a strategic investment' that he said would result in a 'lower, long-term recovery rate for consumers.' SB 307 proposes that the Arkansas Public Service Commission must approve a strategic investment within six months of application, 'ensuring that it is in the public interest,' Dismang said. The PSC then has 60 days to approve the rider rates, but can request another 30 days if additional time is needed. When construction begins and the new rate is being collected, the PSC will review that project every 12 months, Dismang said. Once completed, the PSC has a one-year audit period to make sure everything was 'done prudently so that our ratepayers are protected,' he said. In addition to saving ratepayers money, Dismang said his proposal 'provides more protection and oversight by the PSC because they're able to monitor what's happening through the entire process.' Supporters of the bill have also said it will make Arkansas more competitive in attracting to the state new employers, such as data centers that may require a lot of energy to operate, which would create more jobs. Arkansas legislative panel moves 'strategic energy infrastructure' bill forward Sen. Dave Wallace, a Leachville Republican who voted for SB 307, said he chopped cotton growing up because there were no other jobs in Arkansas, a factor that led many in his generation to leave the state. 'You grow or you die,' Wallace said. '…We have opportunity to be in the lead and to have energy and to bring companies to our state…if we have power, we're going to bring those businesses and Arkansas is going to grow.' Sen. Reginald Murdock, D-Marianna, said the entire Senate believes in the concept of the bill, but he had concerns about the process and making sure to 'protect our ratepayers, specifically the most vulnerable people in the state.' 'I think this process has taken away the ability to provide some alternatives, some Plan B's, some Plan C's, that could do a better job of protecting ratepayers if given the time to sit down and deal with this in a different way, from a time standpoint,' Murdock said. 'So I do think there are some alternatives that can be brought forward that may help us.' Sen. Jimmy Hickey, R-Texarkana, said it was important to watch out for ratepayers from a cost and risk standpoint. While he thanked Dismang for his hard work on a complicated bill and agreed action is needed, Hickey said SB 307 is not ready as is. Hickey called for more discussion about the bill's proposal to keep Arkansas' rates at 10% below the national average, noting that by some estimates, Arkansas' current rate is 25% below that threshold. He also noted that a better definition for 'strategic investments' is needed. 'It's a whole lot easier to come down here and start throwing rocks at it than to sit and devise this type of policy, but again, I just don't think that we're ready to go forward,' Hickey said. Hickey was among 11 senators who voted against SB 307. The legislation received 17 affirmative votes, one shy of the 18 needed for a bill to pass out of the Senate. Murdock was one of four senators who did not cast a vote. Democratic Sens. Greg Leding of Fayetteville and Fredrick Love of Mabelvale, and Sen. Dan Sullivan, R-Jonesboro, voted present. The Senate voted in favor of Dismang's motion to expunge the vote, which will allow him to bring SB 307 back to his colleagues at a later date. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX

Legislation for $750 million new prison funding filed in Arkansas legislature
Legislation for $750 million new prison funding filed in Arkansas legislature

Yahoo

time03-03-2025

  • Business
  • Yahoo

Legislation for $750 million new prison funding filed in Arkansas legislature

LITTLE ROCK, Ark. – Legislation filed Monday requests $750 million for funding new prison construction in Arkansas. Senator Jonathan Dismang (R-Searcy) filed for the funding via Senate Bill 354. Monday is the final day of the current legislative session for filing appropriation bills. Franklin County prison plans hit bump after appropriations request fails in committee The bill comes on the heels of a request for $330 million to construct a Franklin County prison, which the Joint Budget Committee denied last Thursday in a 14-5 vote, one vote shy of the needed majority. Dismang is the chair of that committee. Committee members cited the lack of concrete planning as they voted down the allocation. Staffing concerns were also cited. The Department of Corrections currently has $75 million toward the new 3,000-bed prison. Secretary of Corrections Lindsay Wallace said the $330 million would provide the resources needed to develop a plan. Group outlines opposition to Franklin County prison plans for Arkansas SB354 was read on the Senate floor on Monday and assigned to the Joint Budget Committee for a hearing. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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