278.710 Granting or denial of construction certificate -- Policy of General
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/ky/278-710A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Assembly -- Duties upon receipt of construction certificate -- Compliance and
monitoring.
(1)Within one hundred twenty
(120)days of receipt of an administratively complete
application, or within one hundred eighty
(180)days of receipt of an
administratively complete application if a hearing is requested, the board shall, by
majority vote, grant or deny a construction certificate, either in whole or in part,
based upon the following criteria:
(a)Impact of the facility on scenic surroundings, property values, the pattern and
type of development of adjacent property, and surrounding roads;
(b)Anticipated noise levels expected as a result of construction and operation of
the proposed facility;
(c)The economic impact of the facility upon the affected region and the state;
(d)Whether the facility is proposed for a site upon which existing generating
facilities, capable of generating ten megawatts
(10MW)or more of electricity,
are currently located;
(e)Whether the proposed facility will meet all local planning and zoning
requirements that existed on the date the application was filed;
(f)Whether the additional load imposed upon the electricity transmission system
by use of the merchant electric generating facility will adversely affect the
reliability of service for retail customers of electric utilities regulated by the
Public Service Commission;
(g)Except where the facility is subject to a statewide setback established by a
planning and zoning commission as provided in KRS 278.704(3) and except
for a facility proposed to be located on a site of a former coal processing plant
and the facility will use on-site waste coal as a fuel source, whether the
exhaust stack of the proposed merchant electric generating facility and any
wind turbine is at least one thousand (1,000) feet from the property boundary
of any adjoining property owner and all proposed structures or facilities used
for generation of electricity are two thousand (2,000) feet from any residential
neighborhood, school, hospital, or nursing home facility, unless a different
setback has been requested and approved under KRS 278.704(4). If a
planning and zoning commission has established setback requirements that
differ from those under KRS 278.704(2), the applicant shall provide evidence
of compliance. If the facility is proposed to be located on site of a former coal
processing plant and the facility will use on-site waste coal as a fuel source,
the applicant shall provide evidence of compliance with the setback
requirements provided in KRS 278.704(5);
(h)The efficacy of any proposed measures to mitigate adverse impacts that are
identified pursuant to paragraph (a), (b), (e), or
(f)of this subsection from the
construction or operation of the proposed facility;
(i)Whether the applicant has a good environmental compliance history; and
(j)Whether the decommissioning plan is complete and complies with the
requirements of KRS 278.706(2)(m) and any other local requirements that
may apply.
(2)When considering an application for a construction certificate for a merchant
electric generating facility, the board may consider the policy of the General
Assembly to encourage the use of coal as a principal fuel for electricity generation
as set forth in KRS 152.210, provided that any facility, regardless of fuel choice,
shall comply fully with KRS 224.10-280, 278.212, 278.216, and 278.700 to
278.716.
(3)A person that has received a construction certificate for a merchant electric
generating facility shall:
(a)File with the Energy and Environment Cabinet the copy of the bond or other
similar security that, pursuant to KRS 278.706(2)(m)5., is required by a
county or a municipal government or as part of a decommissioning plan, no
later than the date upon which the construction of the merchant generating
facility commences, and refile an updated copy at least once every five
years thereafter;
(b)Not transfer rights and obligation under the certificate without having first
applied for and received a board determination that:
1. The acquirer has a good environmental compliance history; and
2. The acquirer has the financial, technical, and managerial capacity to
meet the obligations imposed by the terms of the approval or has the
ability to contract to meet these obligations;
(c)File with the Energy and Environment Cabinet a notice of the date that
construction is complete and the merchant electric generating facility begins
producing electricity for sale; and
(d)Following the date the merchant electric generating facility begins producing
electricity for sale, file a notice of any transaction involving the transfer or
sale of ownership, control, or the right to control the merchant electric
generating facility, with lessors of property where the merchant electric
generating facility is located, the Energy and Environment Cabinet, the county
judge/executive of a county and, if applicable, the mayor of a municipality in
which the merchant electric generating facility is located, within ten
(10)days
of completing the transaction. The notice shall include the name, street
address, telephone number, and e-mail address of the person acquiring
ownership, control, or the right to control the merchant electric generating
facility.
(4)A person that has acquired ownership, control, or the right to control a merchant
electric generating facility from the applicant or its successor or assign shall file
with the Energy and Environment Cabinet within ten
(10)days of completing the
acquisition:
(a)A written consent to assume the obligations set forth in the decommissioning
plan as of the date the acquisition occurred; and
(b)A notice of adoption of an existing bond or other similar security previously
filed pursuant to subsection (3)(a) of this section or a replacement bond or
other similar security that complies with KRS 278.706(2)(m)5. An existing
bond or other similar security shall be adopted, or a replacement bond or other
similar security shall be in place, as of the date the acquisition occurs so that
there is no lapse in coverage of the decommissioning bond or other similar
security. A person making a filing pursuant to this subsection shall file an
updated bond or other similar security that complies with KRS
278.706(2)(m)5. at least once every five
(5)years.
(5)Any person who transfers or sells ownership, control, or the right to control a
merchant electric generating facility shall remain liable for all existing
decommissioning obligations and bond requirements until the person who acquires
ownership, control, or the right to control the merchant electric generating facility
files with the Energy and Environment Cabinet the documents required by
subsection
(4)of this section and they are accepted as complete by the secretary.
(6)Any application approval condition that requires the approval of the transfer of
control of a merchant electric generating facility after construction is complete shall
be void and unenforceable, but any transfer of control of a merchant electric
generating facility shall be subject to compliance with the requirements of
subsections (3)(d), (4), and
(5)of this section.
(7)Notwithstanding any provision of law to the contrary, including any order issued by
the board prior to June 29, 2023, after the board has approved an application for a
construction certificate for a merchant electric generating facility under this section,
the approved applicant has posted the bond or similar security required under KRS
278.706(2)(m)5., and the facility is constructed and begins generating electricity for
sale, the board's authority to enforce any conditions of the construction certificate,
including bonding and decommissioning requirements, shall end and the secretary
of the Energy and Environment Cabinet shall monitor and enforce the construction
certificate holder's compliance with the requirements of KRS 278.700 to 278.716
and the conditions of its construction certificate application approval.
(8)In addition to all compliance monitoring and enforcement performed by the
secretary of the Energy and Environment Cabinet, and notwithstanding any
provision of law to the contrary, the secretary shall also review the
decommissioning plan required by KRS 278.706(2)(m) or by local ordinance,
license, or permit and the bond or similar security amount required by KRS
278.706(2)(m)5. or by local ordinance, license, or permit as needed, including any
time a transfer determination is made under subsection
(5)of this section, but in any
event at least once every five
(5)years. Upon review, the secretary of the Energy
and Environment Cabinet shall require the decommissioning plan to be updated and
the bond amount to be changed to match any significant change in circumstances or
change to the estimated cost of effectuating the decommissioning plan or to the
salvage value of the facility or its components.
(9)After the facility for which an application for a construction certificate has been
approved is constructed and begins generating electricity for sale, the secretary of
the Energy and Environment Cabinet shall ensure ongoing compliance with the
mitigation measures that were conditions of the application approval under KRS
278.708(6) and any enforcement by the board of the mitigation measures shall
cease.
(10)During the period that the merchant electric generating facility is operational, if
solar panels are replaced and discarded, the facility owner-operator shall remove
discarded solar panels from the site within ninety
(90)days of completion of the
work. Upon request of the facility owner-operator, the secretary of the Energy and
Environment Cabinet may extend the time period under this subsection for
removing discarded solar panels.