Natural Resources and Energy

Create a new section of KRS Chapter 150 to define terms; require that any permit issued to take a lower Ohio River trophy catfish shall expire on May 31, 2027; prohibit the issuance or reissuance of an any lower Ohio River trophy catfish permits after that date; after the effective date of the Act, prohibit the transfer or reissuance of any lower Ohio River trophy catfish permit; prohibit the transportation of live trophy catfish except by boat while in the course of legally fishing; amend KRS 150.990 to make a violation of the prohibition on transporting live trophy catfish a Class A misdemeanor for the first offense and a Class D felony for each subsequent offense.

Amend KRS 278.670 to define "environmental control" and "underpreciated extra-state generation utility plant balances," amend various definitions, and make technical changes; amend KRS 278.672 to remove the deadline date for calculating the value of the regulatory asset associated with the undepreciated extra-state generation utility plant balances, deferred storm costs, and other regulatory assets approved by the Public Service Commission (PSC) remove the dollar amount thresholds for qualifying for a financing order; remove the submittals associated with securitization of deferred costs for retried electric generation greater than 50%; add additional submittals for an application for a financing order; add requirement for a utility to acquire in-state dispatchable generation and agree to a freeze on base rates for a period of 2 years; define "dispatchable"; amend KRS 278.674 to prohibit the PSC from requiring securitized bonds to be marketed as a specific type of security or that an assignee be formed as a specific type of entity; provide a price cap for costs associated with retaining counsel, advisors, or other consultants; remove PSC authority to address how the securities are marketed; add a template issuance advice letter to be included in the financing order; direct that the PSC must approve sales or transfer of assets including extra-state generation facilities even if the balances are securitized; amend KRS 278.678 to make technical changes; amend KRS 278.682 to remove the requirement that the securitized surcharge be listed as a separate item on the customer bill; EMERGENCY.

Create new sections of KRS Chapter 278 to establish the membership of the Public Service Commission; provide for the appointment, confirmation, and replacement of commissioners; establish the qualifications of the commissioners; provide for the election of the chair and the delegation of his or her duties; set the terms and term limits for commissioners; set qualifications for intervenors in cases before the commission; provide that in cases in which the Attorney General intervenes, he or she shall be the sole advocate for residential consumers; amend KRS 278.020 to increase the minimum voltage and length of electric transmission lines for which a certificate of public convenience and necessity is required for construction; amend KRS 278.040 to provide that the commission is an independent department of state government that is administratively attached to the Auditor of Public Accounts only for the limited functions and purposes that the commission requests; allow the commission, in its sole discretion, to conduct procurements under KRS Chapter 45A, identify and determine the compensation for categories of its professional employees, and engage hearing officers and other entities on a contractual basis; prohibit the commission from being reorganized under KRS Chapter 12; amend KRS 278.060 to prohibit the immediate family members of commissioners from having any official relationship to any utility; allow for a commissioner or an immediate family member to have a pension or a retirement savings account with utility as long as no contributions have been made to it for at least 1 year prior to the commissioner's appointment; amend KRS 278.070 to allow the officer who appointed a commissioner to remove the commissioner for cause; amend KRS 278.100 and 278.120 to allow the commission to appoint and have sole discretion in fixing the compensation of the executive director; require the executive director to be subject to confirmation by the Senate; amend KRS 278.702, 12.020, 43.015, 64.640, 160.617, and 224.10-022 to conform; repeal KRS 278.050, relating to membership of the Public Service Commission; require the Auditor of Public Accounts to make initial appointments to the commission on or before July 1, 2026, and provide for the staggering of the appointments; allow current members of the commission to serve out the remainders of their terms provided that they meet the qualification requirements of the Act; terminate the terms of current commissioners who do not meet the qualification requirements of the Act and provide for their replacement; direct the transfer of all records, files, or documents associated with functions previously performed by the Energy and Environment Cabinet to the Auditor of Public Accounts; EMERGENCY.

Amend KRS 224.80-190 to allow for the amendment of an environmental covenant without the approval of some of the previously required signatories if the sole effect of the amendment is to remove or reduce a land use restriction in the environmental covenant that the Energy and Environment Cabinet has determined is no longer necessary and certain new procedural requirements have been satisfied; provide that when the cabinet determines that a land use restriction in an environmental covenant can be reduced or eliminated, it shall provide notice to the affected parties and opportunity for them to object to the determination; allow for affected parties to seek judicial review of a cabinet determination; amend KRS 224.80-180 to conform; RETROACTIVE; EMERGENCY.

This bill amends Kentucky's wind energy regulations to update setback requirements and establish new construction procedures for merchant electric generating facilities. It requires developers to obtain a construction certificate valid for three years and mandates specific distances between facilities and neighboring properties, schools, hospitals, and residential areas. Local planning and zoning commissions can set their own setback rules that override state standards, while the state board may grant exceptions under certain conditions. The bill also requires public meetings with landowners and interested parties before construction begins, with specific notice requirements and timelines for holding these meetings.