2007 Special Session Summary
Shortly upon the close of the 2006 Regular Session this spring, Governor called the General Assembly to Frankfort to pass a laundry list of items which were inappropriate for consideration in an extraordinary session.  The House adjourned, insisting that the session be limited to truly urgent matters which could not wait until the regular session in January.  

Then the House led the way to an agreement with the Governor and Senate to focus the session on a single critical issue: energy independence.  According to a recent poll commissioned by the Lane Report, most Kentuckians who expressed an opinion on
the matter were pleased that the House adjourned the scattershot session so that the General Assembly could focus on the challenges of energy policy.

The result of these focused efforts was a one week session during which the General Assembly passed House Bill 1, a piece of legislation which creates a visionary framework for energy policy in the Commonwealth of Kentucky.  House Bill 1, which overwhelmingly passed both Houses, will pioneer new frontiers in jobs and technology for Kentucky, while creating opportunities for private companies and state government to be more energy efficient.

House Bill 1 lays the groundwork for future improvements in energy technology development in Kentucky by promoting and funding cutting-edge research at the University of Louisville and all of our state universities.

 The bill contains an appropriation to allow the Kentucky Geological Survey to conduct research on deep-hole drilling for storage and sequestration of carbon dioxide with an eye towards utilizing the waste product to improve oil and coaled methane recovery from Kentucky wells and mines. 

 The University of Kentucky Center for Applied Energy Research also receives an appropriation allowing them to begin developing a method to allow industry to quickly incorporate alternative fuel production technologies into their plant design and construction. 

 Recognizing that state government should lead by example, the bill contains provisions directing the Secretary of the Finance & Administration Cabinet to begin replacing at least 50% of the state auto fleet with hybrids and other alternative fuel powered vehicles.  Not letting state buildings off the hook, the legislation also begins incorporating energy efficient design standards in state buildings, promotion of more guaranteed energy savings performance contracts for state-operated facilities, and inclusion of more ENERGY STAR products in state office procurements.  Manufacturers are also eligible for tax rebates if they are able to reduce energy consumption by 15% after the replacement of machinery. 

 Student loan forgiveness benefits are offered to graduates of Kentucky's colleges and universities who choose to embark on careers in engineering, hydrology, and geology in an energy-related job in Kentucky.  It is not enough to have the incentives for bricks and mortar, we have to develop a workforce that is capable of continuously improving the technology needed to succeed in this complex industry. 

 This legislation allows Kentucky to be at the forefront of promoting energy independence, but doing so without taking precautions to protect our environment is doing so at our own peril.  In addition to providing $5 million for research and  requiring carbon capture readiness of any new alternative fuel facility seeking incentives, the General Assembly has moved to create the Center for Renewable Energy Research and Environmental Stewardship.  This collaborative effort will bring together various public and private interests to promote energy efficiency and the protection of our most hallowed resource - our planet. 

 House Bill 1 is merely a starting point.  Future sessions of the General Assembly, beginning in January, 2008, will continue improving on and expanding our alternative and renewable fuel capabilities.  Kentucky's new energypolicy is not about one company, one project, or one situation.  House Bill 1 enacts a visionary policy and a flexible framework to enable Kentucky to lead the nation in the inevitable shift toward alternatives and renewable fuels.