HB 408 (BR 1634) - J. Gooch
AN ACT relating to air quality.
Create a new section of KRS 224.20-050 to 224.20-150 to establish definitions for allocate, compliance supplement pool, control period, division, EPA, ERC, NOx allowance, and NOx budget trading program; require the Division of Air Quality to first allocate NOx credits from the compliance supplement pool to those industrial sources that have made early reductions and then sell any remaining credits to industrial sources that are unable to meet their compliance deadlines; and permit the Division of Air Quality to contract with a private entity for the sale of allowance credits.
HB 408 - AMENDMENTS
HCS (1) - Create new sections of KRS 224.20-050 to 224.20-150 to establish definitions for allocate, allocation period, BTU, classification date, combine cycle system, combustion turbine, compliance supplement pool, control period, EGU, electric generating unit, ERC, existing source, heat input, MM, megawatt, new source, NOx allowance, NOx budget trading program, NOx budget unit, ozone precursor, source pool, and state implementation plan; require the Division of Air Quality to promulgate regulations to implement a nitrogen oxide budget trading program; clarify that sections in the bill that establish source pools for electric generating units do not restrict the cabinet from establishing source pools for other NOx budget units; require the Natural Resources and Environmental Protection Cabinet to establish an EGU source pool and an Efficient Energy Reserve Source pool for electric generating units; require the cabinet to establish a compliance supplement pool and set aside a portion of the pool for electric generating units; establish eligibility requirements for the EGU source pool and specify the ratio of nitrogen oxide allowance credits allocated to new source and existing electric generating units; provide that the cabinet use a heat input formula to allocate credits to individual budget units in the EGU source pool; permit the cabinet to modify the heat input formula; prohibit the cabinet from allocating credits from the EGU source pool until a transfer of credits is made to the Efficient Energy Reserve pool; prescribe eligibility criteria for allocation of credits from the Efficient Energy Reserve pool; require the cabinet to promulgate administrative regulations to establish a methodology to set aside allowance credits in the Compliance Supplement pool for electric generating units; establish that the credits set aside for electric generating units in the Compliance Supplement pool be used first for early reductions and then for inability to meet compliance deadlines; require the Division of Air Quality to sell credits to EGUs that apply for and are approved to receive credits for the reason of inability to meet compliance deadlines; require that allowance credits set aside for industrial sources in the Compliance Supplement pool be used first for early reductions and second for situations where the industrial source is unable to meet compliance deadlines; require that any credits applied under the reason of inability to meet compliance deadlines be sold to the industrial source; permit the Division of Air Quality to contract with a private entity to sell allowance credits.
HCS (2) - Delete original provisions of the bill; require the Public Service Commission to require all electric utilities to inform all Kentucky coal operators of a utility's request for bids on a purchase coal contract, and require the bidder to disclose the amount of coal severance and unmined minerals tax to be remitted to the Commonwealth on the coal specified in the bid; when conducting a review of a utility's coal purchase contract for the purpose of disallowing any portion of the contract price in the utility's rates, require the utility to submit the bids by suppliers that remit tax to the Commonwealth; if the utility accepts a bid from a supplier that does not remit a tax, require the commission to determine the amount of coal severance and unmined minerals tax lost and apply the tax lost as an offset to be added to the contract price for the coal; require the commission to compare the lowest bid by a supplier that remits tax to the Commonwealth to the contract price for the coal after adding the prescribed offset;
HCA (1/Title, J. Gooch) - Make title amendment.
Jan 17-introduced in House
Jan 18-to Natural Resources and Environment (H); posted in committee
Jan 29-reported favorably, 1st reading, to Calendar with Committee Substitute
Jan 30-2nd reading, to Rules; recommitted to Natural Resources and Environment (H)
Mar 14-reported favorably, to Rules with Committee Substitute (2), committee amendment (1-title)
Mar 18-recommitted to Appropriations and Revenue (H)