02RS HB540


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HB 540/LM (BR 1784) - J. Draud

     AN ACT relating to state and local planning for power suppliers.
     Create new sections of KRS 278.010 to 278.450 to establish definitions for "board," "merchant plant," "person," "commence to construct," "nonregulated electric transmission line," and "residential neighborhood"; establish the Kentucky State Board on Electric Generation and Transmission Siting and the Environment; prescribe the membership and terms of membership; provide that the board is attached to the Public Service Commission; prohibit any person from constructing a merchant plant absent approval from the board; establish statewide setbacks for electric generating facilities from residential structures, neighborhoods, historic structures, schools, hospitals, or nursing homes; establish an application procedure and filing requirements for merchant plants; provide that the board will render a decision on the application within 120 days of receipt of an application; prescribe criteria upon which the board will render its decision; permit the board to convene a public hearing on an application; prescribe a process for the public hearing; provide for intervention by an interested person on an application before the board; prescribe a process for review of final action by the board; prohibit an electric utility from constructing an electric generating facility absent board approval; permit utilities from purchasing real property in connection with a facility under review by the board; establish an application process and filing requirements for electric utilities; provide that the board shall not deny an application filed by an electric utility but may require reasonable mitigation at the plant site; prohibit any person from constructing a nonregulated transmission line absent board approval; establish an application process and filing requirements for board approval of a nonregulated transmission line; require electric interconnection agreements to be filed with and approved by the Public Service Commission; prescribe curtailment priorities for utilities when an emergency exists that requires curtailment; establish a siting fund in the State Treasury and require that application fees be deposited into the fund for use in implementing the siting provisions; prohibit transfer of a utility's assets if the assets are valued at $50,000 or more absent approval by the Kentucky Public Service Commission; create a new section of Subchapter 10 of KRS Chapter 224 to create an application for an environmental compatibility report from the Natural Resources and Environmental Protection Cabinet; provide for the review and report from the cabinet within 60 days of receipt of a complete application; permit the cabinet to assess a fee for the application; amend KRS 278.010 to conform.


     HCS/LM - Retain original provisions of HB 540; provide for appointment of ad hoc public members for an electric generating facility locating in single county and in a multi-county situation; provide that ad hoc public members shall have no direct financial interest in the facility under review by the board; prohibit the exhaust stack of an electric generating facility from locating closer than 3,000 feet from any residential neighborhood, historic structure, school, hospital, or nursing home; permit the board to grant a deviation from the setback requirements for good cause shown; permit the board to grant a deviation from the setback application filing requirements for good cause shown; specify that a local air pollution control district with concurrent jurisdiction with the cabinet files any applicable environmental compatibility report; delete requirement that the Natural Resources and Environmental Protection Cabinet consider impacts on farmland, compatibility with land uses and local ordinances governing pollution and nuisances, and integrated environmental and public health risk assessment; specify in the application filing requirements that a detailed listing of violations by the applicant shall also include any person with an ownership interest in the applicant; provide that one of the board criteria for approving or disapproving an applicant shall be whether the applicant intends to comply with applicable federal, state, and local laws pertaining to air pollution, water pollution, and solid and hazardous waste disposal and any applicable administrative regulations promulgated thereunder; specify that any public hearing convened by the board is an evidentiary hearing; provide that the board shall not deny an application to locate an electric generating facility by an electric utility; permit the board to require a utility locating an electric generating facility to mitigate any significant adverse environmental impacts; delete that an application to the Natural Resources and Environmental Protection Cabinet for an environmental compatibility statement is deemed complete after the applicant has received notice from any federal or local authority that requires a permit be issued before commencing to construct a facility; repeal KRS 278.025; and make technical corrections to conform.

     HFA (1, T. Feeley) - Require that at least one ad hoc public member be present at a board meeting to constitute a quorum to do business.

     HFA (2, T. Feeley) - Require that if the board holds a public meeting and the facility if to be located in more than one county, the public meeting will be in the larger by population of the affected counties.

     HFA (3, B. Yonts) - Declare that an applicant will not be required to obtain planning and zoning commission or fiscal court approval subsequent to an action by the board if applicant had obtained such approval prior to action of the board.

     HFA (4, G. Lindsay) - Exempt municipal utilities from coverage of the bill.

     HFA (5, J. Gooch) - Exempt from the provisions of this Act any power plant whose setbacks exceed those in the Act and who are eligible for funding under the Kentucky Rural Economic Development Act or the Kentucky Industrial Development Authority.

     HFA (6, S. Lee) - Clarify plants as "merchant" plants; delete Section 7 relating to the siting of electric generation facilities; delete Section 12 relating to the transfer of ownership or assets of a utility; expand definition of "regulated activity" to include "or other person" as others who could be providing services regulated by the PSC; delete Section 15 which would repeal KRS 278.025 relating to the certificate of environmental compatibility; and make conforming technical changes.

     HFA (7, T. Feeley) - Require that administrative regulations promulgated to set initial application fees be done by the Public Service Commission rather than by the board.

     HFA (8, T. Feeley) - Make the board's determination not to approve the siting of a nonregulated transmission line permissive if the line degrades environmental and scenic factors.

     HFA (9, G. Lindsay) - Specify that provisions of the act do not apply to a municipal owned utility which is not a merchant plant or which is an electric generating plant proposed to be built out of the owning county after the effective date of the act.

     HFA (10, S. Riggs) - Require that the siting board give favorable consideration to any electric generating facility seeking siting approval that uses clean coal technology to burn coal.

     HFA (11, J. Barrows) - Confirm Executive Order 2001-771, as amended by and incorporated into Executive Order 2002-50, relating to a moratorium on the issuance of new permits for electric generating facilities; extend the moratorium until June 21, 2003; create the Energy Reliability and Environmental Safety Task Force; EMERGENCY.

     HFA (12, S. Riggs) - Require the board to give favorable consideration to applicants that use clean coal technology.

     Jan 30-introduced in House
     Jan 31-to Local Government (H)
     Feb 4-posted in committee
     Feb 14-reported favorably, 1st reading, to Calendar with Committee Substitute
     Feb 15-2nd reading, to Rules; floor amendments (1) and (2) filed to Committee Substitute
     Feb 20-floor amendments (3) (4) (5) and (6) filed to Committee Substitute
     Feb 21-floor amendments (7) (8) (9) and (10) filed to Committee Substitute
     Feb 22-placed in the Orders of the Day for Monday, February 25, 2002; floor amendment (11) filed to Committee Substitute
     Feb 25-floor amendment (12) filed to Committee Substitute ; 3rd reading; floor amendment (6) defeated ; floor amendment (11) rejected ; passed 84-14 with Committee Substitute, floor amendments (1) (2) (7) (8) (9) and (10)
     Feb 26-received in Senate
     Feb 28-to Agriculture and Natural Resources (S)

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