House Bill 392

Actions | Amendments
Last Action 03/14/22: to Rules (H)
Title AN ACT relating to merchant electric generating facilities.
Bill Documents Current/Final
Introduced
Bill Request Number 1513
Sponsors J. Branscum, J. Bray, R. Bridges, R. Dotson, D. Fister, D. Frazier Gordon, R. Heath, S. Heavrin, M. Koch, W. Lawrence, B. McCool, S. McPherson, D. Meade , M. Meredith, J. Miller, P. Pratt, B. Reed, B. Rowland, S. Rudy, S. Santoro, J. Tipton, K. Upchurch
Summary of Original Version Amend KRS 278.702 to provide that the terms of service for the ad hoc members of the Kentucky State Board on Electric Generation and Transmission Siting end when the merchant electric generating facility for which they were appointed has been constructed and has begun generating electricity for sale; amend KRS 278.704 to include decommissioning requirements within the requirements over which local planning and zoning requirements shall have primacy; remove outdated language; amend KRS 278.706 to require that a decommissioning plan be included in an application for construction of a merchant electric generating facility; establish minimum requirements for a decommissioning plan; require as part of a decommission plan that a bond or similar security be secured to assure that the decommissioning plan is accomplished; establish requirements for how the bond is set and how the beneficiaries of the bond are to be determined; require that certain components of the decommissioning plan be incorporated into the construction certificate applicant's leases with landowners; amend KRS 278.710 to include whether the decommissioning plan complies with the requirements of the Act in the criteria for approval of a construction certificate for a merchant electric generating facility; require a person that has received a construction certificate for a merchant electric generating facility file with the board the copy of the bond or similar security no later than the date that construction commences for the facility; require that an updated copy of the bond or similar security be refiled at least once every five years thereafter; require notice to be filed with the board when the construction of the merchant electric generating facility is complete and has begun producing electricity for sale; require that notice be given of any transaction involving the sale or transfer of ownership of the facility to the board and local officials within five days of finalizing the transaction; require a person who has acquired a merchant electric generating facility to file with the board written consent to assume the obligations in the decommissioning plan for the facility and to adopt or replace the required decommissioning bond; amend KRS 278.718 to provide that an ordinance, permit, or license issued by a local government shall have primacy over the requirements of KRS 278.700 and Sections 2, 3, and 4 of this Act.
Index Headings of Original Version Energy - Merchant electric generating facilities, siting
Environment and Conservation - Merchant electric generating facilities, siting
Home Rule - Merchant electric generating facilities, decommissioning, bonding, local primacy
Land Use - Merchant electric generating facilities, siting
Local Government - Merchant electric generating facilities, decommissioning, bonding, local primacy
Notices - Merchant electric generating facilities, transfer of control, notice
Property - Merchant electric generating facilities, siting
Public Utilities - Merchant electric generating facilities, siting
Bonds of Surety - Merchant electric generating facilities, decommissioning bonds, requirement
Jump to Proposed Amendments House Floor Amendment 1
Senate Committee Substitute 1
Senate Committee Amendment 1
Senate Floor Amendment 1
Senate Floor Amendment 2
Senate Floor Amendment 3
Senate Floor Amendment 4
Votes Vote History

Actions

Top | Amendments
01/28/22
  • introduced in House
  • to Committee on Committees (H)
02/01/22
  • to Local Government (H)
02/02/22
  • reported favorably, 1st reading, to Calendar
02/03/22
  • 2nd reading, to Rules
  • posted for passage in the Regular Orders of the Day for Monday, February 07, 2022
02/07/22
  • floor amendment (1) filed
  • 3rd reading, passed 91-3
  • received in Senate
  • to Committee on Committees (S)
02/09/22
  • to Natural Resources & Energy (S)
03/07/22
  • taken from Natural Resources & Energy (S)
  • 1st reading
  • returned to Natural Resources & Energy (S)
03/08/22
  • taken from Natural Resources & Energy (S)
  • 2nd reading
  • returned to Natural Resources & Energy (S)
  • floor amendments (1), (2), (3) and (4) filed
03/09/22
  • reported favorably, to Rules with Committee Substitute (1) and Committee Amendment (1-title)
  • posted for passage in the Regular Orders of the Day for Wednesday, March 09, 2022
  • passed over and retained in the Orders of the Day
03/10/22
  • passed over and retained in the Orders of the Day
03/11/22
  • passed over and retained in the Orders of the Day
03/14/22
  • 3rd reading
  • floor amendments (1), (2), (3), (4) withdrawn
  • passed 28-6 with Committee Substitute (1) and Committee Amendment (1-title)
  • received in House
  • to Rules (H)

Proposed Amendments

Top | Actions
Amendment House Floor Amendment 1
Sponsor R. Roberts
Summary Provide that the term of an ad hoc member of the Kentucky State Board on Electric Generation and Transmission Siting ends when the construction certificate for the merchant electric generating facility expires; allow interconnection facilities to be excluded from decommissioning plans upon agreement of the landowner; provide that the decommissioning bond or similar security be reviewed and approved by the siting board; provide that the decommissioning plan requirements be incorporated into leases with landowners upon agreement of the landowners; provide that decommissioning bond amounts be reviewed and adjusted for adequacy at least once every five years; allow the board to set additional decommissioning planning and bonding requirements if local requirements are inadequate.
Index Headings Energy - Merchant electric generating facilities, siting, decommissioning and bonding
Environment and Conservation - Merchant electric generating facilities, siting, decommissioning and bonding
Local Government - Merchant electric generating facilities, local siting ordinances, additional board requirements
Public Utilities - Merchant electric generating facilities, siting, decommissioning and bonding

Amendment Senate Committee Substitute 1
Summary Delete all provisions; amend KRS 278.212 to prohibit an electrical interconnection with a merchant electric generating facility that either operates at an aggregate capacity in excess of 10 megawatts or occupies in aggregate 10 acres or more of land until the plans for the electrical interconnection have been filed with the Public Service Commission; amend KRS 278.216 to prohibit a utility from beginning construction on an electric generating facility that either operates at an aggregate capacity in excess of 10 megawatts or occupies in aggregate 10 acres or more of land without first obtaining a site compatibility certificate from the Public Service Commission and to conform; amend KRS 278.700 to change the definition of "merchant electric generating facility" to include facilities that occupy in aggregate 10 acres or more of land; change the definition of "commence to construct" so that site clearing and excavation work satisfy the commence to construct requirements; amend KRS 278.704 to extend the validity of a construction certificate for a merchant electric generating facility to three years; establish setback requirements for solar merchant electric generating facilities of 50 feet from the property boundary of any nonparticipating adjoining property and 100 feet from a residence on any other property than the one on which the facility is to be located unless waived in writing; require that no later than 180 days prior to filing its application for a construction certificate, a merchant electric generating entity shall notify the heads of local government entities of jurisdiction; allow the local officials or the board to request a public hearing on the proposed merchant electric generating project; require that upon filing its construction certificate application, the merchant electric generating facility shall inform local officials of changes to the project and shall post the changes to its Web site; amend KRS 278.706 to conform; amend KRS 278.708 to require the site assessment report submitted by a person proposing to construct a merchant electric generating facility to include a decommissioning plan to explain in detail how the facility and its components will be removed; require the decommissioning plan to be reviewed as needed, but at least once every five years; establish minimum requirements for the decommissioning plan; amend KRS 278.710 to include whether the proposed decommissioning plan is complete and complies with state and local requirements as a criteria for application approval; require that prior to the commencement of construction, the holder of a construction certificate for a merchant electric generating facility shall furnish bond or other similar security to assure the decommissioning of the facility; establish the procedure for setting the bond amount; require that the bond be uncancelable and that it always maintain an "A" rating as determined by A.M. Best; provide for review of the bond amount as needed but at least once every five years; provide which entities will be named as beneficiaries of the bond depending on the circumstances; require the Energy and Environment Cabinet to claim forfeited bonds and perform decommissioning if there is no other party willing or able to do so; exempt cities, counties, and the siting board from legal or financial liability to perform decommissioning; require that the bond be forfeited unless the person responsible for completing the decommissioning plan begins work on the plan within 12 months of the date that the facility ceases to produce electricity for sale and completes the work within 18 months of that date and allow for extensions of those deadlines for good cause shown; require that any forfeited bond amounts only be used to decommission facilities on the properties for which the bond was posted; provide that after the application for a construction certificate for a merchant electric generating facility has been approved, the facility has been constructed, and it has begun generating electricity for sale, the secretary of the Energy and Environment Cabinet shall ensure the facility's ongoing compliance with the requirements of KRS 278.700 to 278.716 and the conditions of its construction certificate approval, including updating its decommissioning plan and bond amounts at least once every five years; require a finding by the secretary of the Energy and Environment Cabinet that an acquirer or transferee has a good environmental compliance history and will assume the obligations of the construction certificate prior to any transfer of control of a non-solar merchant electric generating facility; require the secretary of the Energy and Environment Cabinet to make a transfer determination for a non-solar merchant electric generating facility within 90 days of its application and to issue findings with the determination; for solar merchant electric generating facilities wishing to transfer control: define "control"; require landowner and local government notification within 14 days of the transfer; require a notification and attestation to the Energy and Environment Cabinet of good environmental history and of having financial, technical, and managerial capacity to assume all responsibilities and obligations of the solar merchant facility, including carrying out the decommissioning plan and maintenance of the bond; create a new section of Subchapter 10 of KRS Chapter 224 to require the Energy and Environment Cabinet to promulgate administrative regulations within 90 days of the effective date of the Act to establish compliance monitoring and enforcement of merchant electric generating facilities with regard to KRS 278.700 to 278.716 and the conditions of their construction certificate approvals; require that the administrative regulations include fees to be collected from merchant electric generating facilities to cover the costs of compliance monitoring; authorize the cabinet to impose civil penalties not to exceed $2,500 per day to enforce the provisions of the Act; authorize the cabinet to suspend operations of a merchant electric generating facility after nonpayment of civil penalties for a period of 365 days; amend KRS 224.10-100 to require the cabinet to monitor compliance with and enforce the provisions of KRS 278.700 to 278.716 and the conditions of a merchant electric generating facility's construction certificate approval; amend KRS 278.702 to provide that ad hoc members of the siting board serve until the merchant electric generating facility has been constructed and begins generating electricity for sale; provide that the requirements of the Act shall apply to all new and current applicants for construction certificates for merchant electric generating facilities whose applications have not been approved prior to the effective date of the Act; EMERGENCY.
Index Headings Effective Dates, Emergency - Merchant electric generating facilities, siting
Energy - Merchant electric generating facilities, siting
Environment and Conservation - Solar merchant electric generating facilities, siting
Fees - Energy and Environment Cabinet, merchant electric generating facilities, enforcement, fees
Land Use - Solar merchant electric generating facilities, siting, setback requirements
Local Government - Merchant electric generating facilities, notice, 180 days prior to board application
Notices - Merchant electric generating facilities, notice, 180 days prior to board application
Property - Merchant electric generating facilities, siting
Public Utilities - Merchant electric generating facilities, siting
State Agencies - Energy and Environment Cabinet, merchant electric generating facilities, enforcement
Administrative Regulations and Proceedings - Energy and Environment Cabinet, merchant electric generating facilities, enforcement, fees
Bonds of Surety - Merchant electric generating facilities, decommissioning bonds, requirement
Public Meetings - Merchant electric generating facilities, public meetings, 180 days prior to board application

Amendment Senate Committee Amendment 1
Sponsor B. Smith
Summary Make title amendment.
Index Headings Title Amendments - HB 392/GA

Amendment Senate Floor Amendment 1
Sponsor S. West
Summary Retain original provisions; add that public funds shall not be used to subsidize a merchant electric generating facility; APPROPRIATION.
Index Headings Economic Development - Public funds, merchant electric generating facility
Appropriations - Public funds, merchant electric generating facility, prohibited

Amendment Senate Floor Amendment 2
Sponsor S. West
Summary Create setback requirements for solar merchant electric generating facilities of 500 feet from the property boundary of any nonparticipating adjoining property and 1,000 feet from a residence on any property other than the one on which the facility is to be located unless waived in writing by the property owner.
Index Headings Energy - Solar merchant electric generating facilities, siting, setback requirements
Land Use - Solar merchant electric generating facilities, siting, setback requirements
Property - Solar merchant electric generating facilities, siting, setback requirements
Public Utilities - Solar merchant electric generating facilities, siting, setback requirements

Amendment Senate Floor Amendment 3
Sponsor S. West
Summary Amend KRS 132.450 to exclude land used in connection with a merchant electric generating facility from the agricultural land and horticultural land valuations for property taxation.
Index Headings Energy - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion
Environment and Conservation - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion
Land Use - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion
Property - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion
Taxation - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion
Taxation, Property - Merchant electric generating facility, agricultural or horticultural land valuation, exclusion
Agriculture - Property tax, merchant electric generating facility, agricultural or horticultural land, exclusion

Amendment Senate Floor Amendment 4
Sponsor S. West
Summary Amend KRS 103.710 to exclude merchant electric generating facilities from the definition of "industrial building."
Index Headings Energy - Merchant electric generating facilities, industrial building defining, exclusion
Environment and Conservation - Merchant electric generating facilities, industrial building defining, exclusion
Local Government - Merchant electric generating facilities, industrial building defining, exclusion
Public Utilities - Merchant electric generating facilities, industrial building defining, exclusion
Cities - Merchant electric generating facilities, industrial building defining, exclusion
Counties - Merchant electric generating facilities, industrial building defining, exclusion

Last updated: 5/25/2022 2:58 PM (EDT)
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