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<title>April 2002: Kentucky Legislation to Regulate Merchant Power Plant Siting</title>
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<img src="../images/statelin.gif" alt="STATELINE by Robert Olson" border="0" width="375" height="75">
</center><p align="left"><b><u><br>
April 2002</u>
<br>
</b><font size="6">Kentucky Legislation to Regulate
Merchant Power Plant Siting<br>
</font><strong>by Robert Olson -- Brown, Olson and Wilson, P.C.<br>
</strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
200</em>2/05/16)</font></p>
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<p align="left">As the expiration of a moratorium on new electric power
plant construction approaches, the Kentucky Legislature
has passed legislation to regulate new power plant
siting.
</p>
<p align="left">The legislation forbids the construction of any merchant
electric generating facility (excluding qualifying cogeneration
facilities) or nonregulated electric transmission
line without first obtaining a construction certificate
from the newly created "Kentucky State Board on Electric
Generation and Transmission Siting" ("Board"). The
Board functions alongside the existing Public Services
Commission ("Commission"), and three of its seven
members are required to be members of the Commission.
The Board is "attached" to the Commission for
administrative purposes, and shares the Commission’s
administrative staff. The Board is also to include ad hoc
representation from the county in which the facility is
proposed to be located.
</p>
<p align="left">In reviewing applications for a construction certificate
for merchant electric generating facilities, the Board is
required to consider such factors as the proposed facility’s
impact on scenic surroundings, anticipated noise levels,
regional economic impact, whether the facility will meet
all local planning and zoning requirements, and whether
the additional load imposed on the electric transmission
system will adversely affect reliability. Any issued
certificate will be conditioned upon obtaining any necessary
air, water and waste permits.
</p>
<p align="left">With respect to applications for a construction certificate
for nonregulated electric transmission lines, before granting
a certificate the Board must determine that the proposed
route will "minimize significant adverse impact
on the scenic assets of Kentucky," and that "the applicant will
construct and maintain the line according to all applicable legal
requirements." </p>
<p align="left">In addition, with the exception of certain "grandfathered"
facilities, the legislation provides that no person may
construct a new electric generating facility without first
submitting a "cumulative environmental assessment" to
the Natural Resources and Environmental Protection
Cabinet ("Cabinet"). The assessment must include a
description and analysis of the types and quantities of air
pollution, water pollution and waste that the facility will
generate, and a description of the source and volume of
water withdrawal needed to support the facility. The
Cabinet may impose restrictions on any resulting permit
to ensure that the facility meets applicable standards.
The legislation does not state whether the requirement
for a "cumulative" environmental assessment would
involve an assessment of the proposed facility’s cumulative
impact with that of other existing or proposed facilities.
(See Stateline, February 2002, "Virginia State Corporation
Commission (SCC) Considers the Cumulative
Environmental Impact of Proposed Generating Facilities"). </p>
<p align="left">Citing the need to allow the regulatory agencies sufficient
time to revise administrative regulations before the
expiration of the current moratorium on the issuance of
permits for new electric generating facilities, the
legislation
includes a declaration that an "emergency" exists,
and that the legislation will therefore take effect
immediately
upon approval by the Governor, or upon otherwise
becoming law. The legislation is currently awaiting the
Governor’s signature.
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<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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