Aug. 17--A group of leading lawmakers agreed on an energy incentive bill late last night and recommended that Gov. Ernie Fletcher call the legislature into special session Monday.

After weeks of intensive negotiations behind closed doors, lawmakers contended in a 10:30 p.m. news conference that they have no idea how much the legislation might be worth to companies, such as Peabody Energy, that have proposed building multibillion- dollar plants to convert coal into synthetic fuels. "This bill is not worth anything to any particular company," said Senate President David Williams, R-Burkesville. He said the measure is simply a framework for incentive packages that can be negotiated by state economic-development officials. House Speaker Jody Richards, D-Bowling Green, hailed the bill as "a comprehensive energy policy for the future." The measure does provide more than $12 million in grants to government agencies conducting energy research, and it offers tax incentives to companies that produce fuels from renewable resources such as biomass, cellulose and corn.

But the driving force behind the proposal has been Peabody Energy's insistence that lawmakers pass incentives for coal conversion this summer if the state wants to be considered for the company's proposed $3 billion plant to convert coal to natural gas. Previous versions of the proposal, which were considered in this year's regular legislative session and an aborted special session in July, would have provided Peabody an estimated $300 million in tax breaks over 25 years. That figure works out to $600,000 to $800,000 in incentives for every full-time worker projected to be hired. The current proposal includes the same types of incentives previously considered, but lawmakers declined last night to detail how any changes might affect Peabody's bottom line.

Among other things, the proposal would reduce or eliminate the sales tax on construction materials, a company's income tax and the severance tax on Kentucky coal used by a conversion plant. Energy companies also could recoup a portion of the income tax paid by their employees. Environmental groups have launched a public-relations campaign against the proposed incentives, saying that coal-conversion plants will increase global warming by emitting large amounts of carbon waste. Kentuckians for the Commonwealth also questions why tax inducements are needed to lure coal companies to the state, given that Kentucky's coal can't be removed from another state's ground.

Richards and other lawmakers dismissed those complaints, saying the bill is an "environmental protection bill." Williams said the proposal requires that coal-conversion plants that apply for incentives must have the "capacity to comply with all federal regulations" regarding greenhouse gases. The bill also requires state government to take several energy-efficiency steps, and it offers tax incentives to companies that reduce energy consumption by at least 15 percent. Another provision provides forgivable education loans to certain college graduates needed by energy industry companies. Richards predicted the bill will "pass the House handily," and said the special session should end by next Friday.

He said the House will not consider any other issues. In the aborted July session, the House refused to consider any of 67 items Fletcher put on the agenda, saying none was an emergency. Only the governor can call a special session and set its agenda.