164.2807 Legislative findings and declarations -- Definitions -- Energy Planning
3,670 words·~17 min read·
/ky/164-2807A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
and Inventory Commission -- Membership -- Executive committee -- Powers
and duties -- Required review of proposed retirement of coal, oil, or natural
gas-fired electric generating units -- Reports of commission -- Sunset.
(1)The General Assembly finds and declares that:
(a)The long-term economic health and well-being of the citizens of the
Commonwealth and the United States depends upon the availability of
reliable sources of energy;
(b)The Commonwealth has abundant reserves of coal, natural gas, and other
natural resources;
(c)The energy needs of the Commonwealth are best met by continuing to engage
in an all-of-the-above approach to electric generation resources, including but
not limited to coal, oil, natural gas, wind, solar, hydropower, nuclear, and any
future or emerging technologies like hydrogen power;
(d)The current economy and future economic development of the
Commonwealth requires reliable, resilient, dependable, and abundant supplies
of electrical power;
(e)The demand for reliable, resilient, dispatchable electrical power is anticipated
to significantly increase in the coming decades as the Commonwealth
becomes home to additional manufacturing and other economic development
projects which increase demand for electrical power;
(f)It is in the interest of the Commonwealth that it be able to generate sufficient
electricity within its borders to serve its own industrial, residential, and
commercial demand and to power its own economy;
(g)The electrification of the United States' economy combined with
unprecedented federal regulatory pressures have created an electric generation
resource crisis in the Commonwealth;
(h)Existing state and federal policies with respect to energy do not adequately
address the concerns of the General Assembly or citizens of the
Commonwealth such that a comprehensive Kentucky energy policy is
required;
(i)Current policies at the state and federal level do not adequately assess
capacity, availability, reliability, or resilience attributes of existing and new
fossil fuel-fired, nuclear, or other emerging dispatchable electric generating
resources;
(j)It is the policy of the Commonwealth to maintain adequate capacity of
available, reliable, dispatchable, and resilient electric generation to provide for
the existing and reasonably projected future energy consumption needs of all
wholesale, retail, and other consumers of electricity in the Commonwealth;
(k)Further retirement of fossil fuel-fired electric generating resources is not
necessary for the protection of the environment or the health, safety, and
welfare of the citizens of the Commonwealth;
(l)The health, happiness, safety, economic opportunity, and general welfare of
the citizens of the Commonwealth will be promoted and protected by the
operation of fossil fuel-fired electric generating resources and, conversely,
those interests would be harmed by the premature retirement of those
generating resources;
(m)The Commonwealth can support a multitude of potential electric generating
resources and energy fuel supply sources so as to be the national leader in the
production of energy in all forms;
(n)Local economic development is essential to the health, happiness, safety, and
general welfare of the citizens of the Commonwealth;
(o)Local economic development requires an adequate supply of electricity to
support new and expanding industries and is enhanced by robust employment
in coal mining and coal transportation and at electric generating facilities, the
local job multiplier effect of employment in the coal, natural gas, and electric
generating industries, and state and local taxes and other forms of economic
value creation for the Commonwealth; and
(p)The numerous energy policy challenges facing the Commonwealth require a
comprehensive energy policy informed by the input, judgment, experience,
and expertise of diverse stakeholders representing a variety of interests and
energy resources, including but not limited to coal, oil, natural gas, wind,
solar, hydropower, nuclear, and any future or emerging resources to achieve
the best results for the citizens of the Commonwealth.
(2)For the purposes of this section:
(a)"Commission" means the Energy Planning and Inventory Commission
established in this section;
(b)"Dispatchable" means a source of electric power generation that is available
on demand, that is not intermittent, and that can be adjusted to increase or
decrease its power output upon request of a power grid operator or otherwise
upon demand or request, or that can have its power output adjusted in
response to market or system needs;
(c)"Generation and transmission cooperative" has the same meaning as in KRS
278.010;
(d)"Intermittent" means:
1. A source of electric power generation from a solar photovoltaic, solar
thermal heating, concentrating solar thermal collector, or other solar
energy collection or generation system;
2. A source of electric power that generates energy by harnessing wind
power or energy, whether through a turbine or other device;
3. Geothermal energy, biomass energy, anaerobic digestion, or combined
heat and power from solar, wind, geothermal, or anaerobic digestion
sources;
4. Any short duration energy storage, which includes any method of
storing generated electricity for later dispatch to the grid, whether alone
or in conjunction with any other intermittent sources described in this
paragraph, that is equivalent to less than forty-eight
(48)hours of the
average peak generation of the unit it is used to offset; or
5. 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;
(e)"Public Service Commission" means the Kentucky Public Service
Commission established under KRS Chapter 278, or any successor entity
having the power to regulate rates and services of public utilities pursuant to
the powers enumerated in KRS Chapter 278; and
(f)"Utility" has the same meaning as in KRS 278.010.
(3)The Energy Planning and Inventory Commission is hereby established and
administratively attached to the University of Kentucky Center for Applied Energy
Research, but it shall otherwise be independent from the University of Kentucky
and any Kentucky executive branch agency. The affairs of the commission shall be
governed exclusively by the provisions of this section. The exercise of the
commission's powers conferred by this section and the carrying out of its purposes
and duties are essential governmental functions and are conducted for public
purposes.
(a)The commission shall be composed of an eighteen
(18)member board and a
five
(5)member executive committee. Except for the state government
officials and the ex officio nonvoting commission board members appointed
by the President of the Senate and the Speaker of the House of
Representatives, each member of the commission board shall be appointed by
the Governor and confirmed by the Senate as set forth in this subsection. The
commission board shall be composed of the following members:
1. One
(1)representative of a Kentucky investor-owned utility;
2. One
(1)representative of a Kentucky generation and transmission
cooperative, nominated by the chief operating officer of the Kentucky
Association of Electric Cooperatives;
3. One
(1)representative of Kentucky coal producers, nominated by the
president of the Kentucky Coal Association;
4. One
(1)representative of Kentucky oil and gas producers, nominated by
the executive director of the Kentucky Oil and Gas Association;
5. One
(1)representative of an industry or business engaged in the
transportation of coal;
6. One
(1)representative of a business engaged in the transportation or
distribution of natural gas, nominated by the president of the Kentucky
Gas Association;
7. One
(1)representative with professional experience in the purchasing or
sale of fossil fuels, nominated by the president of the Kentucky Coal
Association;
8. One
(1)member representing the nuclear electric generation industry,
nominated by the executive director of the United States Nuclear
Industry Council;
9. One
(1)member representing the interests of businesses or entities
engaged in activities related to the mining, milling, conversion,
enrichment, or fabrication of nuclear fuel or involved in the remediation
of past enrichment of nuclear fuels in the Commonwealth;
10. One
(1)member representing commercial and industrial consumers of
electrical power, nominated by Kentucky Industrial Utility Customers;
11. One
(1)member representing Kentucky economic interests, nominated
by the chief executive officer of the Kentucky Chamber of Commerce;
12. One
(1)member representing producers of renewable electricity;
13. One
(1)member with experience in investment banking or utility
finance, nominated by the president of the Kentucky Banker’s
Association;
14. One
(1)member representing residential electricity consumers;
15. One
(1)member of the House of Representatives, who shall be an ex
officio nonvoting member, nominated by the Speaker of the House of
Representatives;
16. One
(1)member of the Senate, who shall be an ex officio nonvoting
member, nominated by the President of the Senate;
17. The secretary of the Energy and Environment Cabinet, or designee; and
18. The secretary of the Cabinet for Economic Development, or designee.
(b)The executive committee of the board shall include the following five
members:
1. The director of the University of Kentucky Center of Applied Energy
Research;
2. One
(1)member appointed by the Governor who has the same level of
education, training, and professional experience as would be required to
serve in the role of chief executive officer or board member of a
company engaged in the production of coal;
3. One
(1)member appointed by the Governor who has the same level of
education, training, and professional experience as would be required to
serve in the role of chief executive officer or board member of an
investor-owned, cooperative, or municipal electric utility; and
4. Two
(2)members elected by the commission board from the
commission board membership. Any vacancy in an executive committee
position under this subparagraph shall be filled in the same manner as
the original election.
(c)Any appointment made by the Governor to the commission board or the
executive committee shall be subject to confirmation by the Senate. If a
pending appointment to the board or executive committee requiring
confirmation is not confirmed by the Senate upon the conclusion of the
legislative session during or before which the appointment was made, then the
member’s position on the board or executive committee shall become vacant,
either upon sine die adjournment of the legislative session or the date that the
Senate votes to decline to confirm appointment, and the Governor shall
appoint a different replacement.
(d)After the expiration of their initial terms, members who are not members of
the legislative or executive branch shall serve for terms of four
(4)years and
until a successor is appointed and confirmed by the Senate. Legislative
members shall serve during the terms of their elected positions in the General
Assembly, and executive branch members shall serve during the appointed
terms of their state government positions. In the event of a vacancy prior to
the expiration of a term for member appointed by the Governor, the Governor
shall appoint a replacement in the same manner as the original appointment,
and the appointment shall be subject to the same Senate confirmation process.
Members appointed by the Governor shall not be full-time employees of the
Commonwealth as defined in KRS 18A.005, and shall not be compensated for
their service on the board, but they shall be subject to the requirements of the
executive branch code of ethics established under KRS Chapter 11A.
(e)A majority of the commission board may select one
(1)member of the
commission board to serve as chair of the commission board and one
member of the commission board to serve as vice chair of the commission
board.
(f)The executive committee may adopt rules of procedure or bylaws governing
the conduct of the commission’s business.
(g)Other than being a customer of retail electric service, no member of the
executive committee shall have any current employment, contractual, or other
direct financial relationship with any utility at the time of their appointment or
during their service on the executive committee.
(h)No person shall serve as a member of the commission board or executive
committee if the service would cause a conflict with, or result in the
disclosure of confidential information relating to, any research projects
performed by or in partnership with the University of Kentucky Center for
Applied Energy Research.
(i)If the review of a notice given under subsection
(7)of this section would
result in the disclosure of confidential information to an executive committee
member that is prohibited under subsection (7)(c)3. of this section, the
executive committee member shall recuse himself or herself, and the
remaining executive committee members shall name a replacement from the
membership of the commission board solely for the purpose of reviewing the
notice that caused the recusal.
(j)A majority of the executive committee shall constitute a quorum, and the
affirmative vote of the majority of the members present during a meeting is
necessary for any action taken by vote of the executive committee.
(k)The Governor shall not have reorganization power over the commission, the
structure of the commission, its board, the executive committee, or the hiring,
compensation, or termination of its executive director. Only the General
Assembly may reorganize or restructure the commission or the commission
board by legislative act.
(5)The commission may employ an executive director who shall be selected and hired
by the executive committee, subject to confirmation by the Senate. If a pending
selection for an executive director is not confirmed by the Senate upon the
conclusion of the legislative session during or before which the selection was made,
then the executive director's position shall become vacant, either upon sine die
adjournment of the legislative session or the date that the Senate votes to decline to
confirm appointment, and the executive committee shall select a different
replacement. Until an executive director is selected and hired, or in the event of a
vacancy in the role of executive director, the director of the University of Kentucky
Center for Applied Energy Research shall serve in the role of executive director of
the commission.
(6)The commission shall be authorized to:
(a)Take all necessary measures to effectuate the public purposes described in
subsection
(1)of this section;
(b)Assist in fulfilling the executive committee’s mandatory duties regarding
review of planned retirement decisions described in subsection
(7)of this
section;
(c)Engage in the examination and study of:
1. The adequacy of the Commonwealth's existing and anticipated future
electric generation and transmission resources and the existing and
anticipated future electric demand;
2. The continued operation, retirement, divestiture, or other major action
impacting any electric power generating unit, or any pollution control
equipment associated with any such unit, located in the Commonwealth;
3. Issues concerning the adequacy of the Commonwealth’s energy supply,
including but not limited to the economic impact of energy production
and consumption in the Commonwealth, the Kentucky energy grid’s
response to severe weather events, projected power demand and growth
in demand, land use impacts from power generation, local economic
impacts resulting from the closure of electric generating resources, and
whether alternatives to decommissioning electric generating resources
exist;
4. The effect of any federal policy which may impact the availability of
dispatchable power or the adequacy of energy supplies in the
Commonwealth;
5. The Commonwealth’s ability to participate in energy markets or in the
production, transmission, or distribution of energy;
6. The Commonwealth’s ability to finance or provide financing assistance
to energy producers to encourage additional energy production in the
Commonwealth;
7. New and emerging electric generating technologies that could supply
future electric demand in the Commonwealth; and
8. Whether the Commonwealth’s energy resources are sufficiently
dispatchable to ensure against loss of electrical power supply in the
event of extreme weather or other unexpected or catastrophic events that
may challenge the ability of the Commonwealth’s electrical grid to meet
demand; and
(d)On or before December 1, 2024, and each December 1 thereafter, submit a
report with recommendations, including but not limited to recommendations
for statutory changes or budgetary proposals, to the Legislative Research
Commission, the Governor, and the Public Service Commission concerning
any of the issues examined or studied by the commission pursuant to
paragraph
(c)of this subsection.
(a)Notwithstanding any provision of law to the contrary, no utility shall retire
any existing coal, oil, or natural gas-fired electric generating plant, or any unit
within the plant, prior to submitting notice to the commission and receiving
the findings from the executive committee, as described in this subsection.
(b)A utility proposing to retire any existing coal, oil, or natural gas-fired power
plant, or unit within such plant, shall give notice to the commission's
executive committee, in the form and manner as the executive committee may
require, at least one hundred eighty
(180)days prior to submitting the
retirement application to the Public Service Commission required by KRS
278.264(1). The utility may include with its notice any information the utility
believes will assist in the executive committee's review of the proposed
activity.
(c)1. The executive committee or executive director may require a utility
filing notice under this subsection to provide any information, records,
or data that the executive committee or executive director deems
reasonably necessary to make its findings under this subsection, and the
utility shall respond to all such requests within a reasonable timeframe
as established by the executive committee or executive director.
2. A utility responding to an information request may designate
information, records, or data provided in the response as confidential
business information, and the information, records, or data shall be
exempt from disclosure under the requirements of KRS 61.870 to
61.884.
3. A utility responding to an information request may indicate in its
response that the information, records, or data provided should not be
shared with specific members of the commission board or executive
committee to avoid an unfair competitive or market advantage, in which
case the confidential information, records, or data shall not be shared
with or made available to that member or members.
(d)Other than being a customer of retail electric service, any member of the
commission board who has an employment or contractual relationship with
the utility filing the notice required by this subsection shall have no contact
with the executive director or any member of the executive committee
concerning the proposed activities described in the notice.
(e)Within ninety
(90)days of its receipt of the notice required by this section, the
commission shall hold a public hearing in the county in which the retirement
is proposed to occur in order to receive public comments on the proposed
activity.
(f)Within one hundred thirty-five
(135)days of receiving a utility’s notice of a
proposed retirement, but following the public hearing described in paragraph
(e)of this subsection, the executive committee shall issue a final report
containing written findings and recommendations concerning the proposed
retirement. The executive committee’s written findings and recommendations
shall include:
1. The impact of the proposed activity on the available supply of
dispatchable and reliable power within the Commonwealth, including
the ability of the Commonwealth to meet future demand growth or
respond to extreme weather events;
2. Whether alternatives to the proposed activity exist, and whether those
alternatives should be further evaluated prior to proceeding with the
proposed activity;
3. Whether the replacement of the generating unit or units subject to the
proposed activity with other generating resources will result in any
adverse land use impacts in the Commonwealth;
4. Whether the proposed activity will result in loss of revenue to the
Commonwealth or any local government unit;
5. The positive or negative economic impact of the proposed activity on
the local economy of the area in which the proposed activity will take
place;
6. The economic impact of the proposed activity on the Commonwealth as
a whole; and
7. The impact of the proposed activity on the Commonwealth’s ability to
increase the available supply of electrical power for current or future
economic development purposes.
(g)The findings of the executive committee that are approved by a majority of
the members of the executive committee shall be designated as findings of the
commission and shall be submitted to the Public Service Commission. If no
majority decision of the executive committee is reached with respect to the
findings, the report shall so indicate, and each member of the executive
committee may make a written statement of position concerning the proposed
activity by the deadline provided for in the report. Each written statement
shall be included in the report and transmitted along with the report to the
Public Service Commission. Any executive committee member dissenting
from the report, any portion of the report, or any specific findings in the report
may, within one hundred eighty
(180)days of the utility filing notice of the
proposed activity, transmit separate dissenting findings to the Public Service
Commission.
(h)The executive committee’s written report, and any dissenting statements
provided to the Public Service Commission, shall be included in any
retirement application made to the Public Service Commission under KRS
278.264, and the Public Service Commission shall not approve any retirement
application without considering all information received from the executive
committee or any member of the executive committee. Any order of the
Public Service Commission in a proceeding under KRS 278.264 shall contain
specific written findings of fact or conclusions of law addressing whether the
executive committee’s findings and recommendations were considered by the
Public Service Commission.
(i)No retirement application to the Public Service Commission under KRS
278.264 shall be deemed administratively complete unless it includes either
the executive committee’s report submitted pursuant to this section or
evidence that more than one hundred eighty
(180)days have passed since
notice was submitted to the commission as required in paragraph
(b)of this
subsection and no executive committee report or determination has been
provided to the utility.
(8)Notwithstanding any provision of law to the contrary, the executive committee, or
the executive director if authorized by the executive committee, shall have standing
to participate as an intervening party in any case or other proceeding before the
Public Service Commission.
(9)Subject to available funding, the executive committee may employ administrative
staff or third-party consultants with expertise in the subject matter of any study,
examination, or review undertaken by the commission to assist in carrying out the
commission’s functions under this section.
(10)The commission shall cease to exist on December 31, 2035.