Kentucky Legislators looking
at alternative fuels plant incentives
Senate presidents want special session
but Democrats hesitatant
Jun 8, 2007 - Knight Ridder Tribune Business News
Author(s): Owen Covington
Jun. 8--A proposal designed to lure an alternative fuels plant to
Kentucky will be pitched to members of a legislative energy subcommittee
during its meeting next week at the TVA Paradise power plant in
Muhlenberg County.
The meeting is one of three planned during the next two weeks as Gov.
Ernie Fletcher and Senate President David Williams push for a special
session of the legislature they say is needed to approve an incentives
package for the unnamed company. Williams, a Burkesville Republican,
announced the meetings in a letter sent Wednesday to House Speaker Jody
Richards, who with other members of the legislature has questioned the
need for a special session this year. "A special session addressing
alternative fuel incentives will allow the General Assembly to create
the tools necessary to attract one, or more, of these plants to
Kentucky," Williams said in the letter.
Richards, a Bowling Green Democrat, said during an interview Thursday
that there are currently too many unknowns about the company and the
project for him to support calling a special session to consider an
incentives package. "We don't know the nature of this company, and we
just don't know those answers," Richards said. Williams plans to use an
incentives package being developed by the governor's office and the
Governor's Office of Energy Policy for the company as a basis for
legislation that will be presented at next Friday's meeting at the
Drakesboro power plant. The plan also will be presented June 18 at the
Pike County Coal Summit and at the June 21 meeting of the interim
Appropriations and Revenue Committee in northern Kentucky.
Williams said in the letter that all members of the legislature and
coal county officials will receive a draft of the legislation as soon as
it is ready. Fletcher spokeswoman Jodi Whitaker said the incentives
package is still being developed and declined to elaborate on the
company, what kind of plant it would build or where it might be located.
"We're working through the process," Whitaker said. "We think it's
imperative to get this done and have a (special) session." Rep. Brent
Yonts, a Greenville Democrat and member of the legislative Subcommittee
on Energy, said he has received information that the plant could produce
coal-based fuel and would likely be located in western Kentucky, but he
declined to elaborate fur her.
Yonts says he believes he needs a stronger argument for the urgency
of a special session before he backs such a move, which he said would
cost about $60,000 for each day legislators are in Frankfort. A less
expensive option could be for governor and House and Senate leadership
to offer a letter of commitment to the company that would ensure an
acceptable incentives package is passed when the legislature convenes
for its regular 60-day session in Jan ary. "If they will do that, I
think that's a cheaper alternative for the state," Yonts said. House
Majority Leader Rocky Adkins, a Sandy Hook Democrat, said state leaders
have issued letters of commitment in the past when trying to secure a
United Parcel Services plant and a Hyundai plant.
However, Adkins said a specific incentives package might not have
been needed if his House Bill 5, an alternative fuels incentives bill,
had been passed this spring. Adkins and Richards both noted that
Williams shut down the negotiations of a conference committee on the
bill on the last day of this year's session. "We were making great
progress in the conference committee," Adkins said. "I'm glad to see
(Williams) thinks this is important now because two months ago ... the
bill was killed in the conference committee." Adkins has been working
with the Legislative Research Commission to develop a new version of
House Bill 5 that could be offered as an alternative if a special
session is called.
"I believe that my bill had the incentives that this company would
have needed or does need," Adkins said. "It's a shame the bill's not
already law." If a special session is called, House and Senate leaders
need to be in agreement about what issues will be addressed and how they
should be addressed to decrease the amount of time legislators are in
Frankfort, Richards said. "The House is just as important as the Senate
in this issue," Richards said. "If it looks like the Senate's just
trying to get their way on the issue and doesn't include the House, it
doesn't bode well for a special session.
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