AN ACT relating to the manufacturing of energy production 與能源生產(chǎn)制造有關(guān)的法案

UNOFFICIALCOPYASOF

DATE\@"MM/dd/yy"

02/16/11

11REG.SESS. 11RSHB340/GA

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HB034010.100-60-4399 GA

ANACTrelatingtothemanufacturingofenergyproductioncomponents.

BeitenactedbytheGeneralAssemblyoftheCommonwealthofKentucky:

Section

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.KRS154.20-400isamendedtoreadasfollows:

AsusedinKRS154.20-400to154.20-420:

(1) "Alternativefuels"means:

(a) AlternativetransportationfuelsasdefinedinKRS152.715;

(b) SyntheticnaturalgasasdefinedinKRS152.715;

(c) BiodieselproducedfrombiomassresourcesasdefinedinKRS152.715thatisusedforpurposesotherthantransportationfuel;

(d) EthanolasdefinedinKRS141.422;

(e) CellulosicethanolasdefinedinKRS141.422;and

(f) Anyotherfuelthatisproducedfromarenewableorsustainablesource;

(2) "Eligiblecompany"meansanycorporation,limitedliabilitycompany,partnership,limitedpartnership,soleproprietorship,businesstrust,person,group,orotherentityengagedinresearchanddevelopmentandcommercializationrelatedto,ortheproductionof,alternativefuels,[or]renewableenergy,energystorage,orenergyefficiencyorconservationtechnology;

(3) "Energyefficiencyorconservationtechnology"meanstechnologythat:

(a) Improvesenergymanagement,transmission,anddistribution;

(b) Significantlyincreasesenergyefficiencyinindustrial,transportation,commercial,orresidentialapplications;or

(c) Reducesenergydemand;

(4) "Energystorage"meanscomponentsorsystemsthatstoreelectricalenergyphysically,chemically,ormechanicallybyameansinwhichtheenergyinputtothedevicecanberecoveredateighty-fivepercent(85%)orgreaterefficiency;

(5) "Kentucky-based"meansabusinesswithitsprincipalplaceofbusinessinKentuckyoratleastfifty-onepercent(51%)ofitspropertyandpayrolllocatedinKentucky;

(6)[(4)] "Qualifiedcompany"meansaneligiblecompanythatmaybegrantedfundingpendingfinalapproval;

(7)[(5)] "Renewableenergy"meanselectricityproducedbyhydropower,solarpower,landfillmethanegas,windpower,geothermal,biomass,orotherrenewablesources;and

(8)[(6)] "Scienceandtechnologyorganization"meansanindependent,nonprofitquasi-governmentalorganizationwithastatewidemissionanddemonstratedhistoryofmanagingcomplicatedprogramsintheareasofentrepreneurialinnovation,researchanddevelopment,andscienceandtechnologyadvancement.

Section

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.KRS154.20-410isamendedtoreadasfollows:

ThereiscreatedintheStateTreasurythe"Kentuckyalternativefuelandrenewableenergyfund"forthepurposeofenablingKentucky-basedcompaniestoundertakeresearchanddevelopmentandcommercializationintheareaofalternativefuel,[or]renewableenergy,energystorage,orenergyefficiencyorconservationtechnology.Thefundmayreceivestateappropriations,gifts,grants,federalfunds,revolvingfunds,andanyotherfundsbothpublicandprivate.MoneysdepositedinthefundshallbedisbursedbytheStateTreasureruponthewarrantofthesecretaryoftheFinanceandAdministrationCabinet.AnyunallocatedorunencumberedbalancesinthefundshallbeinvestedasprovidedinKRS42.500(9).Anyincomeearnedfromtheinvestmentsalongwiththeunallottedorunencumberedbalancesinthefundshallnotlapse,andshallbedeemedatrustandagencyaccountandmadeavailablesolelyforthepurposesandbenefitsoftheKentuckyAlternativeFuelandRenewableEnergyFundProgram.

Section

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.KRS154.20-415isamendedtoreadasfollows:

(1) ThereiscreatedinthecabinetaKentuckyAlternativeFuelandRenewableEnergyFundProgramtoprovidefundingtoKentucky-basedcompaniestoundertakeresearchanddevelopmentandcommercializationworkintheareaofalternativefuels,[and]renewableenergy,energystorage,andenergyefficiencyorconservationtechnology.

(2) ThepurposeoftheKentuckyAlternativeFuelandRenewableEnergyFundProgramisto:

(a) Accelerateknowledgetransferandtechnologicalinnovation,improveeconomiccompetitiveness,andspureconomicgrowthofKentucky-basedcompaniesinvolvedintheareasofalternativefuels,[or]renewableenergy,energystorage,orenergyefficiencyorconservationtechnology;

(b) Supportresearchanddevelopmentactivitiesthathaveclearpotentialtoleadtocommerciallysuccessfulproducts,processes,orservicesintheareasofalternativefuels,[or]renewableenergy,energystorage,orenergyefficiencyorconservationtechnologywithinareasonableperiodoftime;

(c) Stimulategrowth-orientedalternativefuel,[and]renewableenergy,energystorage,andenergyefficiencyorconservationtechnologyenterpriseswithintheCommonwealth;

(d) Encouragepartnershipsandcollaborativeprojectsbetweenprivateenterprises,Kentucky'suniversities,andresearchorganizationsinalternativefuels,[and]renewableenergy,energystorage,andenergyefficiencyorconservationtechnology;and

(e) Promoteresearchanddevelopmentandcommercializationactivitiesinalternativefuels,[and]renewableenergy,energystorage,andenergyefficiencyorconservationtechnologythataremarket-oriented.

Section

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.KRS154.27-010isamendedtoreadasfollows:

Asusedinthissubchapter:

(1) "Activationdate"meansthedateonwhichanapprovedcompanybeginsincurringrecoverablecostsorengaginginrecoverableactivitypursuanttothetaxincentiveagreement.Theactivationdateshallbesetforthinthetaxincentiveagreementandshallbeadatewithinfive(5)yearsofthedateoffinalapprovalofthetaxincentiveagreement.Theauthoritymayextendthefive(5)yearperiodtonomorethanseven(7)yearsuponwrittenapplicationforanextensionbytheapprovedcompany.Toimplementtheactivationdate,theapprovedcompanyshallnotifytheauthorityofitsintenttoactivatethetaxincentivesauthorizedinthetaxincentiveagreement.Theactivationdateshallapplytoallincentivesincludedinthetaxincentiveagreementregardlessofwhethertheapprovedcompanyhasmettherequirementstoreceiveallincentivesatthattime.Iftheapprovedcompanydoesnotimplementtheactivationdatebeforethedateestablishedinthetaxincentiveagreement,theactivationdateshallbethedateestablishedinthetaxincentiveagreement;

(2) "Affiliate"hasthesamemeaningasinKRS154.22-010;

(3) (a) "Alternativefuelfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedonorafterAugust30,2007,oranexistingfacilitylocatedinKentuckythatisretrofittedorupgradedonorafterAugust30,2007,andthat,afterthenewconstruction,retrofit,orupgrade,primarilyproducesforsalealternativetransportationfuels.Foraretrofitofanexistingfacility,thenewmodificationoradditionwithinthefacilityshallprimarilyproducealternativetransportationfuelforsale.

(b) Thealternativefuelfacilitymayproduceelectricityasaby-productiftheprimarypurposeforwhichthefacilityisconstructed,retrofitted,orupgraded,andtheprimaryfunctionofthefacilityremainstheproductionandsaleofalternativetransportationfuels;

(4) "Alternativetransportationfuels"hasthesamemeaningasinKRS152.715;

(5) "Approvedcompany"meansacorporation,limitedliabilitycompany,partnership,registeredlimitedliabilitypartnership,soleproprietorship,businesstrust,oranyotherentityapprovedforincentivesforaneligibleproject;

(6) "Authority"meanstheKentuckyEconomicDevelopmentFinanceAuthorityestablishedbyKRS154.20-010;

(7) "Baseamount"meansthetonsofcoal,thousand(1000)cubicfootunits(Mcf)ofnaturalgas,orgallonsofnaturalgasliquidspurchasedandusedorseveredandusedbytheapprovedcompanyasfeedstockforaneligibleprojectduringthetwelve(12)monthspriortothemonthinwhichtheapprovedcompanyfirstbeginsreceivingincentivesunderKRS143.024or143A.025,and154.27-060,thatweresubjecttothetaximposedbyKRS143.020or143A.020;

(8) "Biomassresources"hasthesamemeaningasinKRS152.715;

(9) (a) "Capitalinvestment"means:

1. Obligationsincurredforlaborandtocontractors,subcontractors,builders,andmaterialmeninconnectionwiththeacquisition,construction,installation,equipping,upgrading,orretrofittingofaneligibleproject;

2. Thecostofacquiringlandorrightsinlandandanycostincidentthereto,includingrecordingfees;

3. Thecostofcontractbondsandofinsuranceofallkindsthatmayberequiredornecessaryduringthecourseofacquisition,construction,installation,equipping,upgrading,orretrofittingofaneligibleprojectwhichisnotpaidbythecontractororotherwiseprovided;

4. Allcostsofarchitecturalandengineeringservices,includingtestborings,surveys,estimates,plans,specifications,preliminaryinvestigations,supervisionofconstruction,andtheperformanceofallthedutiesrequiredbyorconsequentupontheacquisition,construction,installation,equipping,upgrading,orretrofittingofaneligibleproject;

5. Allcostsrequiredtobepaidunderthetermsofanycontractfortheacquisition,construction,installation,equipping,upgrading,orretrofittingofaneligibleproject;and

6. Allothercostsofanaturecomparabletothosedescribedinthissubsection.

(b) "Capitalinvestment"doesnotincludecostsdescribedinparagraph(a)ofthissubsectionthatarepaidforwithfundsreceivedfromthefederalgovernmentorthatarereimbursedbythefederalgovernment;

(10) "Carboncaptureready"meansplanningfororanticipatingcaptureofcarbondioxideinamannertofacilitatecontinuedoperationofthefacilityincompliancewithapplicablefederalrequirements;

(11) "CenterforAppliedEnergyResearch"meanstheUniversityofKentuckyCenterforAppliedEnergyResearch;

(12) "Commonwealth"meanstheCommonwealthofKentucky;

(13) "Componentmanufacturingfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedafterAugust1,2011,oranexistingfacilitylocatedinKentuckythatisrenovated,reconfigured,orretooledonorafterAugust1,2011,tomanufacturesystems,products,orcomponentsofsystemsorproductsusedin:

(a) Arenewableenergyfacilitytogenerateelectricity;

(b) Analternativefuelfacilitytoproducefuel;

(c) Agasificationfacilitytoproducealternativefuels,syntheticnaturalgas,chemicals,chemicalfeedstocks,orliquidfuels;

(d) Theproductionoftechnologiesorsystemsforenergyefficiencyorconservationtechnology;or

(e) Afacilitycomparabletoafacilitydescribedinparagraphs(a)to(c)ofthissubsection,locatedanywhere.

Asusedinthissubsection,"component"includesbutisnotlimitedtoanyitemsusedforelectricitygeneration,storage,management,transmission,ordistribution;

(14) "Constructionperiod"meanstheperiodbeginningwiththeactivationdateoftheeligibleprojectandendingonadatesetforthinthetaxincentiveagreement,whichshallbenolaterthanfive(5)yearsfromtheactivationdate;

(15)[(14)] "Department"meanstheDepartmentofRevenue;

(16)[(15)] "Eligibleproject"means:

(a) AnalternativefuelfacilityoragasificationfacilitymeetingtheinvestmentrequirementsofKRS154.27-020;

(b) Anenergy-efficientalternativefuelfacilitymeetingtheinvestmentrequirementsofKRS154.27-020;[or]

(c) ArenewableenergyfacilitymeetingtheinvestmentrequirementsofKRS154.27-020;

(d) AcomponentmanufacturingfacilitymeetingtheinvestmentrequirementsofSection5ofthisAct;

(e) AnenergystoragemanufacturingfacilitymeetingtheinvestmentrequirementsofSection5ofthisAct;or

(f) AnenergyefficiencyorconservationtechnologymanufacturingfacilitymeetingtheinvestmentrequirementsofSection5ofthisAct;

(17) "Energyefficiencyorconservationtechnology"meanstechnologythat:

(a) Improvesenergymanagement,transmission,anddistribution;

(b) Significantlyincreasesenergyefficiencyinindustrial,transportation,commercial,orresidentialapplications;or

(c) Reducesenergydemand;

(18)[(16)] "Energy-efficientalternativefuelfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedonorafterAugust30,2010,oranexistingfacilitylocatedinKentuckythatisretrofittedorupgradedonorafterAugust30,2010,andthat,afterthenewconstruction,retrofit,orupgrade,willproduceforsaleenergy-efficientalternativefuels.Foraretrofitofanexistingfacility,thenewmodificationoradditionwithinthefacilityshallproduceforsaleenergy-efficientalternativefuels;

(19)[(17)] "Energy-efficientalternativefuels"meanshomogeneousfuelsthat:

(a) Areproducedfromprocessesdesignedtodensifyfeedstockcoal,wastecoal,orbiomassresources;and

(b) Haveanenergycontentthatisgreaterthanthefeedstockcoal,wastecoal,orbiomassresource;

(20)[(18)] "Energystoragemanufacturingfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedafterAugust1,2011,oranexistingfacilitylocatedinKentuckythatisrenovated,reconfigured,orretooledonorafterAugust1,2011,tomanufactureforsalesystems,products,orcomponentsofsystemsorproductsusedtostoreelectricalenergyphysically,chemically,ormechanicallybyameansinwhichtheenergyinputtothedevicecanberecoveredateighty-fivepercent(85%)orgreaterefficiency;

(21) "Estimatedlaborcomponent"meanstheprojectedpercentageofthetotalcapitalinvestmentattributabletolabor;

(22)[(19)] (a) "Facility"meansasinglelocationwithintheCommonwealthatwhichmachineryandequipmentareusedinamanufacturingprocessthattransformsrawmaterialsintoaproductwithcommercialvalue.

1. Thefacilityshallincludethephysicalplantstructurewherethemanufacturingprocessoccursandmachineryandequipmentwithinthephysicalplantstructure.

2. Thefacilitymayinclude:

a. On-sitemachineryandequipmentusedexclusivelyforprocessingcoalorotherrawmaterialsforuseinthemanufacturingprocessatthefacility;

b. Foranalternativefuelfacilityorgasificationfacility,on-sitepowerstationoperations,ifthoseoperationsareprimarilyusedtoproduceelectricityforthefacility;

c. On-siterefiningoperations,ifthoseoperationsareusedexclusivelytorefineandblendfuelsproducedbythefacility;and

d. Thein-stateportionofapipeline,includingappurtenantfacilities,propertyrights,andeasements,iftheexclusivepurposeofthepipelineistotransportcarbondioxidefromthefacilitytoapointofsale,storage,orothercarbonmanagementapplications.

(b) "Facility"shallnotincludeanyminingoperations,ordrillingandproductionoperationsfornaturalgas;

(23)[(20)] "Gasificationprocess"meansaprocessthatconvertsanycarbon-containingmaterialintoasynthesisgascomposedprimarilyofcarbonmonoxideandhydrogen;

(24)[(21)] (a) "Gasificationfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedonorafterAugust30,2007,oranexistingfacilitylocatedinKentuckythatisretrofittedorupgradedonorafterAugust30,2007,andthat,afterthenewconstruction,retrofit,orupgrade,primarilyproducesforsale:

1. Alternativetransportationfuels;

2. Syntheticnaturalgas;

3. Chemicals;

4. Chemicalfeedstocks;or

5. Liquidfuels;

fromcoal,wastecoal,coal-processingwaste,orbiomassresources,throughagasificationprocess.Foraretrofitofanexistingfacility,thenewmodificationoradditionwithinthefacilityshallprimarilyproduceone(1)ormoreoftheproductssetforthinthisparagraph.

(b) Thegasificationfacilitymayproduceelectricityasaby-productiftheprimarypurposeforwhichthefacilityisconstructed,retrofitted,orupgraded,andtheprimaryfunctionofthefacilityremainstheproductionandsaleofalternativetransportationfuels,syntheticnaturalgas,chemicals,chemicalfeedstocks,orliquidfuels;

(25)[(22)] "Kentuckygrossprofits"hasthesamemeaningasinKRS141.0401;

(26)[(23)] "Kentuckygrossreceipts"hasthesamemeaningasinKRS141.0401;

(27)[(24)] "Post-constructionincentives"meanstheincentivesavailableunderKRS154.27-060and154.27-080;

(28)[(25)] "Renewableenergyfacility"meansafacilitylocatedinKentuckythatisnewlyconstructedonorafterAugust30,2007,oranexistingfacilitylocatedinKentuckythatisretrofittedorupgradedafterAugust30,2007,andthat,afterthenewconstruction,retrofit,orupgrade,utilizes:

(a) Windpower,biomassresources,landfillmethanegas,hydropower,orothersimilarrenewableresourcestogenerateelectricityinexcessofone(1)megawattforsaletounrelatedentities;or

(b) Solarpowertogenerateelectricityinexcessoffifty(50)kilowattsforsaletounrelatedentities.

Foraretrofitofanexistingfacility,themodificationoradditionshallprimarilyresultintheproductionofelectricityasdescribedinparagraph(a)or(b)ofthissubsection;

(29)[(26)] "Resident"hasthesamemeaningasinKRS141.010;

(30)[(27)] "Retrofit"meansamodificationoradditiontoanexistingfacilitythatresultsintheproductionofanewanddifferentproductorusesanewordifferentprocesstoproducethesameproductatthefacility.Modificationsoradditionstoafacilitythatmaintain,restore,mend,orrepairafacilityshallnotbeconsideredaretrofitofthefacility,andshallnotbeconsideredpartofthecapitalinvestmentifundertakenatthesametimeasaretrofit;

(31)[(28)] "Syntheticnaturalgas"hasthesamemeaningasinKRS152.715;

(32)[(29)] "Taxincentiveagreement"meansanagreemententeredintoinaccordancewithKRS154.27-040;

(33)[(30)] "Terminationdate"meansadateestablishedbythetaxincentiveagreementthatisnomorethantwenty-five(25)yearsfromtheactivationdate;and

(34)[(31)] "Upgrade"meansaninvestmentinanexistingfacilitythatresultsinanincreaseintheproductivityofthefacility.Increasedproductivityshallbemeasuredinrelationtothetypeofproductsthatarerequiredtobeproducedbythatfacilitytobeaneligibleproject.

Section

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.KRS154.27-020isamendedtoreadasfollows:

(1) Thissubchaptershallbeknownasthe"IncentivesforEnergyIndependenceAct."

(2) TheGeneralAssemblyherebyfindsanddeclaresthatitisinthebestinterestoftheCommonwealthtoinducethelocationofinnovativeenergy-relatedbusinessesintheCommonwealthinordertoadvancethepublicpurposesofachievingenergyindependence,creatingnewjobsandnewinvestment,andcreatingnewsourcesoftaxrevenuesthatbutfortheinducementstobeofferedbytheauthoritytoapprovedcompanieswouldnotexist.

(3) ThepurposeofthissubchapteristoassisttheCommonwealthinmovingtotheforefrontofnationaleffortstoachieveenergyindependencebyreducingtheCommonwealth'srelianceonimportedenergyresources.Theprovisionsofthissubchapterseektoaccomplishthispurposebyprovidingincentivesforcompaniesthat,inacarboncapturereadymanner,construct,retrofit,orupgradefacilitiesforthepurposeof:

(a) Increasingtheproductionandsaleofalternative[transportation]fuels;

(b) Increasingtheproductionandsaleofsyntheticnaturalgas,chemicals,chemicalfeedstocks,orliquidfuels,fromcoal,biomassresources,orwastecoalthroughagasificationprocess;

(c) Increasingtheproductionandsaleofenergy-efficientalternativefuels;[or]

(d) Generatingelectricityforsalethroughalternativemethodssuchassolarpower,windpower,biomassresources,landfillmethanegas,hydropower,orothersimilarrenewableresources;

(e) Manufacturingsystems,products,orcomponentsofsystemsorproductstobeusedinalternativefuel,gasification,orrenewableenergyfacilities;

(f) Manufacturingsystems,products,orcomponentsofsystemsorproductsthatareusedtopromoteenergyefficiencyorconservationtechnology;or

(g) Manufacturingsystemsorproductsforthestorageofenergy.

(4) Toqualifyfortheincentivesprovidedinthissubchapter,thefollowingrequirementsshallbemet:

(a) Foranalternativefuelfacilityorgasificationfacilitythatusesoilshale,tarsands,orcoalastheprimaryfeedstock,theminimumcapitalinvestmentshallbeonehundredmilliondollars($100,000,000);

(b) For:

1. Analternativefuelfacilityorgasificationfacilitythatusesbiomassresourcesastheprimaryfeedstock;

2. Acomponentmanufacturingfacility;

3. Anenergystoragemanufacturingfacility;or

4. Anenergyefficiencyorconservationtechnologymanufacturingfacility;[,]

theminimumcapitalinvestmentshallbetwenty-fivemilliondollars($25,000,000);

(c) Foranenergy-efficientalternativefuelfacility,theminimumcapitalinvestmentshallbetwenty-fivemilliondollars($25,000,000);

(d) ForanalternativefuelfacilitylocatedinKentuckythatisnewlyconstructedonorafterAugust1,2010,oranexistingfacilitylocatedinKentuckythatisretrofittedorupgradedonorafterAugust1,2010,andthat,afterthenewconstruction,retrofit,orupgrade,primarilyproducesforsalealternativetransportationfuelsusingnaturalgasornaturalgasliquidsastheprimaryfeedstock,theminimumcapitalinvestmentshallbeonemilliondollars($1,000,000);providedthattheauthoritymayapproveamaximumoffive(5)projectsthatmeettherequirementsofthisparagraph;and

(e) Forarenewableenergyfacility,theminimumcapitalinvestmentshallbeonemilliondollars($1,000,000).

(5) TheincentivesundertheIncentivesforEnergyIndependenceActareasfollows:

(a) Anadvancedisbursementofpost-constructionincentivesforwhichanapprovedcompanyhasbeenapproved,themaximumamountofwhichisbasedupontheestimatedlaborcomponentofthetotalcapitalinvestmentoftheeligibleproject,andtheutilizationofKentuckyresidentsduringtheconstructionperiodassetforthinKRS154.27-090;

(b) Salesandusetaxincentivesofuptoonehundredpercent(100%)ofthetaxespaid