Programs & Incentives to Promote Energy Conservation & Technology
A healthy environment is an important component to the long term economic well being of Kentucky. Clean air, clean water, clean energy, and green infrastructure including parks and greenways are important elements in the overall quality of life for citizens and represent essential factors in attracting new businesses and professionals to Kentucky. For example, if Kentucky counties are unable to achieve compliance with air and water quality standards, the ability to attract and grow new businesses will be significantly curtailed.
Investment in green initiatives can create additional jobs and lead to a cleaner environment, which provides for a healthier, more productive workforce and can lead to increased financial success for businesses. While some progress has been made at the local level through grassroots efforts and corporate directives, Kentucky’s legislature must assume a leadership role in implementing, promoting and offering incentives for environmentally sustainable practices, such as energy conservation, resource use reduction, and green building design within the Commonwealth.
A non-regulatory approach that avoids the risk of overly burdensome and inefficient requirements will successfully position Kentucky as a leader in sustainability. Effectively implemented, this strategy will allow Kentucky to maintain a competitive edge and capitalize on the opportunities presented by the current changing economy with new jobs and economic growth.
Chamber Position:
The Chamber encourages our State Legislators to pass legislation that promotes research and development through tax incentives for green initiatives that promote environmental quality and energy independence. These initiatives may include, for example, transportation systems that promote reduction in vehicle hours or miles traveled and reduction of gasoline consumption through multi-modal options. The Chamber also encourages our State Legislators to support and promote energy efficiency and other green building programs in both existing and newly constructed buildings. Green building and energy efficiency program examples include the U.S. Green Building Council’s Leadership in Engineering and Environmental Design (LEED) certification and the Federal Energy Star program.
Kentucky’s New Energy Environment
The 2007 passage of state energy legislation designed to encourage companies to locate coal-to-gas plants in Kentucky ushered in a new understanding of unique energy assets within Kentucky’s borders, as well as national challenges looming on the near horizon. With new carbon management legislation expected from the U.S. Congress in 2009, a thoughtful state public policy to address demands for electricity generation is clearly needed. A convergence of two facts call for attention to Kentucky’s energy environment: (a) many of Kentucky’s coal-fired electricity generating units have been in operation for at least 35-years, and (b) the Kentucky Public Service Commission is forecasting need for significant new generating capacity for a growing economy.
Chamber Position:
The Chamber urges the Kentucky General Assembly to create legislation that provides financial tools to help utilities and their customers prepare for the coming new build cycle for electricity generation. To encourage the location of ultra-clean, carbon-capture-ready generating facilities, utilizing clean-coal technology, in Kentucky, the 2010 General Assembly is encouraged to consider tax credits, accelerated depreciation, cost-recovery, and other incentives contained in the 2007 coal-to-gas legislation. When Kentucky’s coal is “exported” by a transmission line, not by barge or railcar, the value-added benefit to our economy will be enormous.
