Working After Retirement—The Rules of Engagement

Recent Trends in Retirement

The U.S. Census Bureau has released its 2021 Survey of Income and Program Participation (SIPP), which collected data on labor force status for respondents in 2020. The data indicated the COVID-19 pandemic’s impacts included significant disruption of labor markets but only a modest impact on people’s retirement timing.

The Census Bureau added new questions to its 2021 SIPP to ascertain how the pandemic affected survey respondents. Respondents ages 55 and older indicated “modest changes” to their retirement (or expected) timing. Among those respondents employed in January 2020, the impact on retirement timing differed by age. Adults ages 62-65 reported the most changes, with 4.6 percent indicating they had retired early or planned to retire early, and 2.9 percent indicating they had delayed or planned to delay retirement.

Working After Retirement – Public Employees

Members of KPERS (the Kansas Public Employees Retirement System) who opt to return to work for a KPERS employer after retirement are subject to the following statutory rules:

Waiting Period (before being rehired). 180 days for members retiring before age 62 and 60 days for members retiring at age 62 or later.

No Prearrangement. Before a member’s retirement and during the waiting period (60 or 180 days), retirees and employers cannot communicate in any way about a return to work. [Note: The Internal Revenue Service requires a bona fide retirement before a member begins to receive retirement benefits. This equates to a formal termination from covered employment and a lack of agreement to return to work.]

Employer Contributions. If a retiree returns to work in a covered position, the employer (state/school or local) makes contributions to KPERS to help fund the Retirement System. Employers must pay the statutory contribution rate for the first $25,000 of the retiree’s salary and a 30.0 percent contribution rate on earnings over $25,000.

Note: Covered positions are not seasonal or temporary; individuals would be employed for 630 or more hours of work per year for school employers or 1,000 or more hours of work per year for non-school employers.

The Retirement Experience – Spotlight on Education

The Commissioner of Education advised a House committee in February 2022 of the “tremendous” impact of the pandemic on the number of licensed teachers, substitutes, certified staff, principals, and superintendents.

From 2020 to 2021, the Kansas State Department of Education (KSDE) noted a 63.0 percent increase in the number of teacher vacancies, with the greatest number seen among special education and elementary teachers. It is anticipated the greatest shortage of qualified staff will occur in school year 2022-2023.

In January 2022, the State Board of Education took emergency action to allow certain individuals to work with a Temporary Emergency Authorized License (TEAL) until June 1, 2022.

2023 Legislation – Reducing the Waiting Period and Certain Working-After-Retirement Restrictions

The House Committee on Financial Institutions and Pensions held hearings and took action on two working-after-retirement bills during the 2023 Session – HB 2195 (pertaining to increasing employer contributions threshold; temporarily waiving the 30.0 percent contribution rate for an 18-month window) and HB 2272 (adds a new category of positions exempt from working-after-retirement employer contributions – KPERS-affiliated Community Developmental Disability Organizations (CDDOs).

Following the bills’ February 15 hearings, the House Committee advanced HB 2195, as amended. The employer contributions threshold was increased from $25,000 (current law) to $50,000 ($35,000 threshold in introduced bill). The Committee also advanced HB 2272 in its introduced format. Enactment of this bill would create a tenth exemption or other adjustment (employer contribution rate) from the statutory working-after-retirement rules. The two bills advanced to the House Committee of the Whole for consideration; both bills were stricken from the calendar by House Rule 1507.

Next Steps

The Legislature has periodically reviewed working-after-retirement provisions during both the legislative session and the interim (such as in the Joint Committee on Pensions, Investments and Benefits [Joint Committee]). Changes to these rules would require enactment of legislation to specify exceptions to the waiting period(s) or other modification or employer contributions.

Joint Committee Recommendation. At its November 2023 meeting, the Joint Committee considered several contemporary KPERS topics, including working after retirement, and recommended further study during the 2024 Session of the key criterion associated with Kansas law (e.g., 60- and 180-day waiting periods, employer contribution threshold amount, and number of hours for covered positions).

For more information, contact:

Melissa Renick
Assistant Director for Research

J.G. Scott
Director

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Features of State Individual Income Taxes

Of the 50 states and the District of Columbia, 42 apply a broad-based individual income tax. However, the various features of the individual income taxes vary by state. A brief summary of the tax rates, number of brackets, expanse of brackets, and minimum income exempted from taxation follows.

Tax Rates

The rates at which income is taxed vary substantially across the 42 state-level income taxes.

Five states impose a lowest tax rate of 0.0 percent, effectively exempting some fraction of taxable income. An additional nine states impose a lowest tax rate above 0.0 percent but less than 2.0 percent.

Twelve states, including Kansas, impose an initial rate between 2.0 and 3.5 percent. An additional 13 states impose a lowest tax rate between 3.5 and 5.0 percent. Minnesota, Maine, and Idaho impose initial tax rates above 5.0 percent, with Maine and Idaho imposing the highest initial rates at 5.8 percent.

In terms of highest tax rates imposed, five states keep income tax rates below 4.0 percent. Thirteen states tax above 4.0 percent, but not in excess of 5.0 percent. Ten states, including Kansas, utilize maximum rates between 5.0 and 6.5 percent. Nine states utilize rates between 6.5 percent and 10.0 percent. Five states utilize maximum rates in excess of 10 percent, with California being the highest state income tax rate in the country at 12.3 percent.

Number of Tax Brackets

Tax brackets are means by which income tax may be imposed at different rates on different ranges of income.

Of the 42 state-level income taxes, 11 states impose a single-bracket, or flat rate, income tax. An additional state, Mississippi, effectively imposes a flat rate tax, as it imposes two tax brackets, the lower of which is taxed at 0.0 percent. No other states utilize a true two-bracket system.

Seven states, including Kansas, impose three income tax brackets. However, one of these states, South Carolina, effectively imposes a two-bracket system by virtue of a 0.0 percent lower bracket rate.

Eleven states utilize tax bracket structures with four or five brackets. Nine states impose tax structures with six, seven, or eight brackets. Three states utilize more than eight brackets, with Hawaii having the greatest number of brackets with 12.

Expanse of Brackets

In addition to the number of brackets, the distribution of income within brackets impacts state tax policy. Of the 30 states with more than one tax rate, five states have a lower bound of their upper tax bracket of less than $10,000 of taxable income for single individuals. Accordingly, these states tax a greater share of income at their highest rates.
Five states have lower bounds of their upper brackets for single individuals between $15,000 and $50,000. Kansas falls into this group, with its upper bracket beginning at $30,001 of taxable income. An additional five states begin their highest rate between $50,001 and $100,000, with five more states using thresholds between $100,001 and $200,000.

Seven states begin their highest tax rate above $200,001 but below $1.0 million. The District of Columbia and New Jersey impose their highest rates on incomes over $1.0 million, and New York begins imposing its highest tax rate at $25.0 million of taxable income.

Minimum Exempted Income

With the exception of Pennsylvania, all states with an income tax exempt some initial income from taxation through the use of either personal exemption amounts, standard or itemized deductions, or both. For single individuals, 13 states exempt up to $5,000. Ten states, including Kansas, exempt between $5,001 and $10,000 of income. Fourteen states exempt more than $10,000 but less than $15,000. Four states exempt at least $15,000 of income for single individuals, including California, which effectively exempts $19,202 of income through a combined personal exemption tax credit and a standard deduction.

Kansas Individual Income Tax Features

Single Filer Rates and Brackets:

  • $0–$15,000: 3.1 percent
  • $15,001–$30,000: 5.25 percent
  • $30,001 and above: 5.7 percent

Single Standard Deduction: $3,500
Personal Exemption: $2,250

For more information, contact:

Edward Penner
Principal Economist

Eric Adell
Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Residential Property Tax Relief Programs in Kansas

Historically, Kansas has implemented residential property tax relief programs to help low-income, senior, and disabled veteran taxpayers. This article reviews the three programs currently available.

Property Tax Relief Program Overview

The method to determine income amounts for property tax relief programs are provided for in statute. The house valuation limits are fixed. When calculating a household income, 50.0 percent of Social Security and Supplemental Security Income is included. Social Security disability, Supplemental Security Income disability, railroad disability, and veteran disability income are not included in household income. The income and valuation amounts listed below are for the 2023 tax year.

While an eligible taxpayer qualifies for multiple property tax relief programs, such taxpayer may receive only one benefit.

Homestead Property Tax Refund

The Homestead Property Tax Refund, enacted in 1970, is available to Kansans with a household income of $40,500 or less and who have both lived in Kansas and meet one of the following criteria for the entire year:

  • Is aged 55 or older;
  • Is blind or totally and permanently disabled; or
  • Has a dependent child under the age of 18 who lived with the taxpayer.

So long as the home’s value does not exceed $350,000, the taxpayer can receive a refund up to $700 on the property tax paid on the home. In tax year 2020, the Kansas Department of Revenue issued $7,422,506 in Homestead Property Tax Refunds to 58,485 homeowners, resulting in an average refund of $126.

SAFESR Property Tax Relief

The SAFESR program, enacted in 2008, is available to Kansas residents who for the entire year:

  • Owned and occupied a home in Kansas;
  • Were 65 years or older; and
  • Had a household income of $23,700 or less.

So long as the home’s value did not exceed $350,000, the taxpayer is eligible for a refund equal to 75 percent of the year’s general property tax to be paid. In tax year 2020, the Kansas Department of Revenue issued $7,894,606 in SAFESR refunds to 6,262 homeowners, resulting in an average refund of $1,260.

Senior or Disabled Veteran Property Tax Refund

The Senior or Disabled Veteran (SVR) program, enacted in 2022, is available to Kansas residents who for the entire year:

  • Owned and occupied a home in Kansas;
  • Were 65 years or older or a disabled veteran; and
  • Had a household income of $53,600 or less.

So long as the home’s value did not exceed $350,000 in their base year, the taxpayer can receive a refund in the amount of the difference between the current year and base year tax amount. Data is not yet available for this program.

For more information, contact:

Edward Penner
Principal Economist

Chardae Caine
Senior Fiscal Analyst

Mike Ditch Jr.
Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Electric Vehicle Charging Stations in Rural Kansas

Electric Vehicle Adoption and Industry Growth

Thirty-seven global automakers are planning to spend approximately $1.2 trillion through 2030 on the development and production of millions of electric vehicles (EV), as well as batteries and raw materials to support production.

The increasing demand for EVs could also lead to a demand for more charging stations to help power these vehicles and alleviate driver “range anxiety,” as drivers would be capable of going farther without fear of the vehicle running out of power.

According to the U.S. Department of Energy (DOE), in 2022, 7,600 EVs and 4,300 hybrid EVs were registered in the State of Kansas. Kansas will play a role in the expansion of charging station infrastructure in order to facilitate interstate travel and commerce.

Charging Station Expansion and Funding

An estimated 54 million battery-powered EVs are expected to be on U.S. roads by 2030. It is anticipated that $39.0 billion in investments are needed by 2030 for public charging infrastructure to meet the accompanying demand.

As of 2022, the Edison Electric Institute (EEI), an association that represents all U.S. investor-owned electric companies, has invested nearly $3.7 billion in programs and projects to accelerate the EV charging station infrastructure implementation process.

In December 2021, the United States Department of Transportation and the DOE created a new department called the Joint Office of Energy and Transportation (Office), which will support and ensure production of EV charging networks nationwide. On February 10, 2022, the Office assigned $5.0 billion to be made available under the National Electric Vehicle Infrastructure (NEVI) Formula Program, which was established in the Infrastructure Investments and Jobs Act, for electric vehicle charging.

As of September 27, 2022, all 50 states and the District of Columbia and Puerto Rico have been approved to move forward with the construction of EV fast charging stations covering approximately 75,000 miles of highway across the country.

The NEVI Formula funding can also be used for other projects that are directly related to charging of a vehicle, such as:

  • Upgrading existing and constructing new EV charging infrastructure;
  • Operation and upkeep costs of EV charging stations;
  • Installation of on-site electrical service equipment;
  • Community and stakeholder engagement;
  • Workforce development;
  • EV charging station signage;
  • Data sharing activities; and
  • Mapping analysis.

Kansas EV Charging Programs and Funding

On September 16, 2022, the Kansas Department of Transportation’s Charge Up Kansas NEVI plan was approved and is set to receive $39.5 million over the next five years. This program will include direct current fast chargers as well as EV charging corridors. In Kansas, the corridors included will reside along I-70, I-35, I-135, US 400, and US 81 from I-70 north to the Nebraska state line. When completed, approximately 1,600 miles of Kansas interstates and highways will have fast charging stations available for public use.

On January 3, 2024, Governor Kelly announced the first six locations, which will receive a total of more than $4.6 million of federal funds:

  • Emporia;
  • Garden City;
  • Pittsburg/Cherokee/Baxter Springs;
  • Fredonia/Parsons/Neodesha/Severy;
  • Concordia/Belleville; and
  • Pratt.

According to the Office of the Governor, the awarded six projects must provide a minimum of 20.0 percent local cash match, bringing the total investment to more than $5.8 million.

For more information, contact:

Kate Smeltzer
Research Analyst

James Fisher
Managing IT Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

License Suspension and Revocation for Failure to Comply with a Traffic Citation

Driver’s License Suspension for Failure to Comply with a Traffic Citation

KSA 8-2110 establishes the misdemeanor crime of failure to comply with a traffic citation, which is failure to appear in court or otherwise comply with a citation, including failure to pay required fines.

In Kansas, when a person fails to comply with a citation, the individual is notified they have 30 days to appear in court or pay fines, after which, the law requires the Division of Vehicles to suspend the person’s driving privileges. As of August 2023, licenses of 208,347 Kansas drivers were suspended. Of these, 123,913, or 59.5 percent, were due to failure to comply with a citation.

Kansas is one of 28 states that suspends licenses for failure to pay traffic debts, and one of 38 states that suspends licenses for failure to appear in court to answer a citation.

Reinstatement Fees

Drivers whose licenses are suspended for failure to comply must pay reinstatement fees to have their driving privileges restored. Kansas reinstatement fees for such suspensions are among the highest in the nation at $100 plus a $22 court surcharge for each charge associated with the original citation, regardless of whether a court dismisses or reduces one or more of the original charges. Kansas is the only state that assesses a separate reinstatement fee for each charge on an unanswered or unpaid traffic citation.

If an individual petitions the court on the basis of financial hardship, the court, since 2019, has discretion to waive or reduce reinstatement fees. Starting in 2021, a court may also waive fines or court costs in response to such petition.

Restricted Driving Privileges

Since 2009, KSA 8-2110 has allowed individuals to apply for restricted driving privileges in lieu of suspension. This expanded in 2014 to also allow individuals whose licenses had expired while they were suspended to apply. Restricted driving privileges permit driving under limited circumstances—driving to and from work, school, medical appointments, emergency care, or court-appointed obligations, or in the course of employment-related duties—for up to one year, or until the terms of the traffic citation are fulfilled. However, the program is generally under-utilized for undetermined reasons.

Eligibility expansion proposed. Drivers whose licenses have been revoked are currently not eligible for the restricted driving privileges program. 2023 SB 2 is one proposal to expand eligibility to drivers whose licenses have been revoked solely for driving while the person’s driving privileges were suspended due to failure to comply with a traffic citation. SB 2 was recommended for passage as amended by the Senate Committee on Transportation, withdrawn from the Senate Calendar, and referred to the Senate Committee on Judiciary, where it remains as of the start of the 2024 Session.

Special Committee on Restricted Driving Privileges

The Special Committee on Restricted Driving Privileges (Committee) met twice during the 2023 Interim to consider issues relating to reform of laws pertaining to restricted driving privileges. Its recommendations included the following.

With regard to individuals whose licenses have been revoked solely for driving while the person’s driving privileges were suspended due to failure to comply with a traffic citation, the Committee recommended the Legislature:

  • Provide for full restoration of driving privileges once the individual complies with all outstanding fines, fees, and court obligations.
  • With regard to license restrictions, the Committee recommended the Legislature:
  • Provide restricted driver’s licenses for drivers attempting to comply and be accountable;
  • Limit the number of opportunities an individual has to apply for restrictions;
  • Reform law pertaining to failure to comply to begin with restrictions, with suspension subsequent to continued non-compliance; and
  • Include driving children to and from child care among permissible driving activities.

The Committee further recommended the Legislature consider or review the following:

  • Explore the possibility of providing for repayment plans for traffic debt with and improved communication between the Division of Vehicles and the courts;
  • Consider limiting reinstatement fees to a single administrative fee per reinstatement, rather than a reinstatement fee for each charge;
  • Consider revising which traffic citations can result in a driver’s license suspension; and
  • Consider providing more judicial discretion with regard to suspension and revocation.
  • Additional information can be found in the Committee resources and in the published Interim Committee Report.

For more information, contact:

Eric Adell
Research Analyst

Jill Shelley
Principal Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Use and Disclosure of Automated License Plate Recognition System Data

Automated License Plate Recognition Definitions and Data Confidentiality

Within the Kansas Open Records Act, terms relating to automated license plate recognition (ALPR) are defined as:

ALPR system — one or more high-speed cameras combined with computer algorithms used to convert images of license plates into computer readable data; and
Captured license plate data — the global positioning device coordinates, date and time, photograph, license plate number and any other data captured by or derived from an automated license plate recognition system.

KSA 45-221(a)(55) excludes records of public agencies that contain captured license plate data or that pertain to the location of an ALPR system from disclosure.

At least 18 other states address one or more aspects of ALPR data confidentiality, use, or both in statutes. Florida, Georgia, Maryland, and Tennessee are among the states that specifically exclude ALPR system data from disclosure.

Law Enforcement Uses of ALPR

According to testimony provided to the Senate Committee on Transportation in 2021 on SB 305, ALPR system technology has been used by law enforcement agencies in Kansas for almost two decades. Private industries such as insurers and vehicle repossession companies also use ALPR data collected by systems available from various vendors.

Law enforcement officials stated ALPR technology has been used in Kansas as a force multiplier to assist in the recovery of stolen vehicles, arrest of suspected felons, prosecutions, and recovery of kidnapping and sex trafficking victims; to confirm the presence of motorcycle gangs; to reduce time searching for vehicles; and to confirm an alibi in a murder case.

Cameras may be mounted in a permanent location, such as on a bridge or tollway entrance gantry, or on a vehicle. Plate data are sent to a central location to be compared with data such as the license plate numbers of stolen vehicles or vehicles associated with specific crimes.

State Limits on ALPR System Use

Some states limit ALPR system uses. For example, Oklahoma law states an ALPR system “shall not be used by any individual or agency for purposes other than enforcement of the Compulsory Insurance Law.” Nebraska statutes restrict uses by “governmental entities.” New Hampshire law authorizes only law enforcement officers to be users of ALPR systems. Illinois prohibits use to investigate immigration status or interfere with reproductive health services. Montana law limits use to identifying a vehicle that is stolen; associated with a wanted, missing, or endangered person; registered to a person against whom there is an outstanding warrant; in violation of commercial trucking requirements; involved in case-specific criminal investigative surveillance; involved in a homicide, shooting, or other major crime or incident; or in the vicinity of a recent crime and may be connected to that crime.

Some states’ statutes direct a law enforcement authority to determine policies for “collection, use, storage, dissemination, and transmittal” of ALPR data, to quote from a statute directing activity of the Alabama Justice Information Commission. California, Minnesota, and Utah, among other states, require “each enforcement agency that utilizes such systems to adopt and maintain a detailed, written policy relating to the use and operation of such systems.” [Note: 2021 SB 305, which died in committee, contained similar provisions.]

Some states, including North Carolina, require audits or reports of who accessed the ALPR system data, when, and for what purpose.

State Limits on ALPR Data Retention

ALPR system data laws limit the length of time ALPR data may be retained, with exceptions for data necessary for ongoing criminal investigations. Such limits range from Maine’s 21 days on the shorter end, to Vermont’s 18 months, to Georgia’s 30 months on the longer end. More broadly, Colorado limits access to “passive surveillance records,” including ALPR system data, after one year and requires its destruction on the third anniversary of its creation.

For more information, contact:

Jill Shelley
Principal Research Analyst

Eric Adell
Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Eminent Domain

Eminent domain is, in general, the inherent power of a governmental entity to take private property and convert it to public use upon payment of just compensation. Kansas has the power to exercise eminent domain to take private property for public use. The power of eminent domain belongs exclusively to the Legislative branch and to those entities or individuals authorized by statute to exercise the power. The Legislature can delegate that power to certain public and private entities through the authority granted in more than 200 statutes, including, but not limited to, those listed below:

EntityStatutory Authority
Airport AuthoritiesKSA 27-321, 27-331
AirportsKSA 3-115, 3-123
State Board of RegentsKSA 76-147
CitiesKSA 26-201, 12-808a, 12-845, 12-1736
Community CollegesKSA 71-201
CountiesKSA 19-101, 19-101a, 19-1561
Drainage DistrictsKSA 24-108, 24-204, 24-407, 24-512
Fire DistrictsKSA 19-3601a, 19-3616
Industrial DistrictsKSA 19-3808
Irrigation DistrictsKSA 42-705
Municipal Energy AgenciesKSA 12-895
Oil and Gas EntitiesKSA 55-1003, 55-1204
Railroad EntitiesKSA 66-501
School DistrictsKSA 72-1144
Secretary of Health and EnvironmentKSA 49-433
Secretary of TransportationKSA 68-413, 68-423e
Secretary of Wildlife and ParksKSA 32-840
Telecom ProvidersKSA 17-1903
Kansas Turnpike AuthorityKSA 68-2006
Water DistrictsKSA 19-3502
Watershed DistrictsKSA 24-1209

Private Corporations

Certain private corporations serving a public interest for public use, such as public utilities holding a Certificate of Convenience and Necessity issued by the Kansas Corporation Commission, may also exercise the power of eminent domain under KSA 17-618.

Prohibitions to Eminent Domain

Exercising the power of eminent domain to transfer property to a private citizen under KSA 26-501a is generally prohibited, but there are exceptions to that under KSA 26-501b, which allows a public utility to take property only to the extent that such property will be used for the operation of facilities necessary for the provision of the utility’s services. Under this exception, “public utility” is defined by KSA 66-104 as any entity that is engaged in the generation, transmission, or distribution of electricity.

KSA 66-405(g) expressly excludes the siting or placement of wind-powered electrical generators or turbines, including towers, in the definition of “public utility” for the purposes of eminent domain.

Procedures to Exercise Eminent Domain

Procedures to exercise eminent domain are conducted pursuant to the Eminent Domain Procedure Act in KSA 26-501 et seq. Procedures include filing a petition, a court finding that the entity possesses the lawful power of eminent domain and the taking is necessary for the corporate purpose of the entity, and just compensation based on fair market value must be provided for the taking.

KSA 12-1306 was amended by 2006 Sub. for SB 323 to require a survey by a licensed land surveyor or a professional engineer who is competent to conduct a land survey for every use of eminent domain by a city when the purchase price cannot be agreed upon with the owner of the property.

For more information, contact:

Heather O’Hara
Principal Research Analyst

Kate Smeltzer
Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

Overview of Inflation Reduction Act Fund Distributions

The federal Inflation Reduction Act (IRA) was signed into law on August 16, 2022. According to the Committee for a Responsible Federal Budget (CRFB), the IRA includes new spending and tax breaks totaling $499.0 billion from 2022 to 2031. At the same time, the IRA is estimated to increase savings and revenues by $738.0 billion.
Of the spending and tax breaks, it is estimated by the CRFB that $391.0 billion is attributable to energy and climate issues while $108.0 billion is attributable to health care. Considering the scope of the IRA, this article will focus specifically on funds that will be made available through the U.S. Department of Energy (DOE).

DOE Spending and Tax Breaks

According to the IRA Guidebook produced by the Office of the President, total spending and tax breaks that fall under the DOE total $35.3 billion. Nineteen different programs within the DOE are affected by the IRA. Of those different program areas, the largest total spending and tax breaks are found in the Advanced Industrial Facilities Deployment Program ($5.8 billion), Energy Infrastructure Reinvestment Financing ($5.0 billion), the High-efficiency Electric Home Rebate Program ($4.5 billion), and Home Energy Performance-based and Whole-house Rebates ($4.3 billion).

Advanced Industrial Facilities Deployment Program

According to the IRA Guidebook, this is a new program that is designed to carry out projects for the:

  • Purchase and installation or implementation of advanced industrial technologies at eligible facilities;
  • Retrofits, upgrades, or operational improvements at eligible facilities to install or implement advanced industrial technologies; or
  • Engineering studies and other work needed to prepare eligible facilities for activities described in the first two bullets.

The Advanced Industrial Facilities Deployment Program will be made available through grants, rebates, and cooperative agreements to owners or operators of domestic, non-federal, non-power industrial or manufacturing facilities engaged in energy-intensive industrial processes. This grant opportunity is currently listed on grants.gov and has an application closing date of February 29, 2024. It can be searched for on the website by using the catalog of federal domestic assistance number (CFDA) 81.255.

Energy Infrastructure Reinvestment Financing

According to the IRA Guidebook, this is a new program that is designed to carry out projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operation, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases.

Funding for Energy Infrastructure Reinvestment Financing will be made available through direct loans and guaranteed/insured loans. CFDA number 81.126 has been designated for this listing, but it is not currently listed on the grants.gov website. Those eligible for these loans include general governments and non-government, for-profit entities, and nonprofit organizations.

High-efficiency Electric Home Rebate Program

According to the IRA Guidebook, this is a new program that will allow state energy offices and tribal nations to develop and implement a high-efficiency electric home rebate program. State energy offices and tribal nations may use up to 20.0 percent of any awarded grant amount for planning, administration, or technical assistance needed to establish their respective home rebate programs. The remaining amount must be used for rebates for purchases of high-efficiency electric home appliances.

Home Energy Performance-based and Whole-house Rebates

According to the IRA Guidebook, this is a new program that will allow state energy offices to develop a whole-house energy saving retrofit program that will provide rebates to homeowners for whole-house energy saving retrofits. As with the High-efficiency Electric Home Rebate Program, state energy offices may use up to 20.0 percent of any grant award for planning, administration, or technical assistance associated with the rebate program. The remaining amount must be used for eligible equipment that significantly reduces energy consumption in a home or multi-family building.

Home Rebate Programs in Kansas

According to the Kansas Corporation Commission (KCC), DOE has established rolling applications for the High-efficiency Electric Home Rebate Program and the Home Energy Performance-based and Whole-house Rebates that will close on January 31, 2025. KCC will apply for the federal grants, and the agency estimates it will do so in calendar year 2024. If awarded, the KCC estimates contracting with a third-party vendor to help administer the program and the funds.

For more information, contact:

Luke J. Drury
Senior Fiscal Analyst

Heather O’Hara
Principal Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

State Energy Plans and Funding in Kansas and Surrounding States

State Energy Plans

According to the U.S. Department of Energy, an energy plan is a long-term roadmap to focus and guide efforts and actions toward a defined vision. Energy plans catalog existing energy consumption, sources, and users; define goals and develop strategies and actions to meet those goals; and identify the needed resources to ensure effective completion of the energy plan.

Kansas State Energy Plan

The Kansas Energy Council published a state energy plan and report annually from 2003 to 2009. From 2003 to 2006, each plan and report included the following information:

  • An overview of energy use in Kansas and both Kansas and national events that could impact energy consumption in the state (e.g. late-summer flooding that damaged rail lines, which halted coal trains moving through the state);
  • The Council’s actions, accomplishments, and activities;
  • Energy policy and planning;
  • Priority study items; and
  • Recommended legislative actions.

From 2007 to 2009, the plan and report included sections on existing policies and programs and recommendations in the areas of:

  • Fossil fuels;
  • Wind energy;
  • Energy conservation and efficiency;
  • Energy use in the transportation sector;
  • Energy use in agriculture, biomass, and biofuels;
  • Energy education;
  • Energy economics; and
  • The environment and electricity.

Currently, Kansas does not have a state energy plan.

The Kansas Energy Council

The Kansas Energy Council, formerly The State Energy Resources Coordination Council, was created in June 2004 through Executive Order 04-05. On December 31, 2008, the Kansas Energy Council was dissolved through Executive Order 08-13.

Federal Funding

The Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act created multiple clean-energy grant programs for which state, local, and tribal governments are eligible. Communities with a strong plan in place will be in a better position to compete for federal funding opportunities, as well as grants, partnerships, and state/local funding. In addition, private sector financing and funding structures, such as power purchase agreements, energy as a service, and energy saving performance contracts, are available for efficiency upgrades and renewable energy installations.

Kansas Funding for Clean Energy and Power, Executive Order 04-05

As of September 2023, according to the White House’s Kansas BIL Fact Sheet, approximately $57.9 million has been allocated to Kansas for clean energy, energy efficiency, and power in 2022 and 2023. This includes:

  • $32 million for weatherization;
  • $5.4 million through the State Energy Program;
  • $4.6 million through the Energy Efficiency and Conservation Block Grant Program; and
  • $13.6 million to prevent outages and make the power grid more resilient. Additional grid funding will be made available in the coming months.

Surrounding States and their Comprehensive Energy Plans

All five states surrounding Kansas have a comprehensive state energy plan.

For more information, contact:

Kate Smeltzer
Research Analyst

Heather O’Hara
Principal Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov

State Regulations of Homeowners Associations’ Abilities to Restrict Solar Panels

Twenty-nine states have adopted law that restricts the ability of a homeowners association (HOA) to restrict or prohibit the installation of devices onto an HOA member’s home that capture and transform sunlight into electricity. Such devices are commonly referred to as solar panels, solar energy systems, solar collectors, and other similar terms, though the exact definitions vary by state. Of these states, 22 allow HOAs to implement only reasonable restrictions, while the remaining 7 also allow other types of restrictions. Including Kansas, 21 states do not have law addressing this topic.
For purposes of this article, the term “solar panel” will be used generally to encompass the array of devices mentioned previously.

Reasonable Restrictions

Of the states that allow for only “reasonable restrictions” on solar panels, the definition of what is a “reasonable restriction” is not uniform. However, these definitions generally include one or more of the following:

  • Do not significantly increase the cost of installation, maintenance, and removal of the system;
  • Do not significantly decrease the efficiency or specified performance of the system; and
  • Allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.

Other Restrictions

New Mexico and Vermont impose reasonable restrictions, except that New Mexico’s are based on an Attorney General opinion rather than statute, and Vermont’s provisions apply to any entity granted the power or right to enforce restrictions, not just an HOA.

Montana prohibits HOAs from imposing more stringent restrictions than what were in place at the time the member acquired the property without the express consent of the member. Similarly, West Virginia law states that HOA policies prohibiting or restricting solar panels are void and unenforceable unless voted on and approved by the HOA’s members.

Iowa law allows for cities and counties to preclude new subdivisions from adding covenants that unreasonably restrict the use of solar panels.

Ohio law allows for owners of certain condominium units to install solar panels in certain circumstance:

  • If the unit owner is responsible for the unit’s roof; or
  • The HOA declaration assigns responsibility for and allows for solar panels.

Wyoming’s Solar Rights Act declares the beneficial use of solar energy to be a property right, and therefore is only to be regulated by local government within specific bounds, such as by establishing a permit system.

Legislation on HOA Solar Panel Restrictions by State chart map of the U.S.A.
Legislation on HOA Solar Panel Restrictions by State

For more information, contact:

Jillian Block
Research Analyst

Matthew Willis
Senior Research Analyst

Kansas Legislative Research Department
Kansas State Capitol Building
300 W. 10th, Suite 68-West
Topeka KS 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov