KRS 152.720: Strategy for production of transportation fuels and synthetic natural gas

from fossil energy resources and biomass resources.

To ensure that Kentucky will lead the states in securing the energy independence of the

United States and will conse quently benefit from economic growth and stabilization of

the Commonwealth's coal industry and agriculture, the Office of Energy Policy shall

develop and implement a strategy for production of alternative transportation fuels and

synthetic natural gas from fossil energy resources and biomass resources. The strategy

shall address:

(1) Technologies available or in use for producing alternative transportation fuels and

synthetic natural gas from fossil energy resources and biomass resources and the

relative ad vantages of these in terms of process efficiencies, environmental

performance, and marketable products, including chemicals, industrial feedstocks,

and electricity;

(2) Research, demonstration, and commercial -scale construction and operation of one

(1) or more technologies, and follow-up expansion;

(3) The essential nature of efficient cooperation, coordination, and synergy between the

efforts of the Office of Energy Policy and those of Kentucky's public and private

colleges and universities in order to max imize Kentucky's opportunities to access

federal funds and to receive research grants and awards from federal and other

sources to fund the development of clean coal technology, coal -to-liquid-fuel

conversion, synthetic natural gas, alternative transportat ion fuels, and biomass

resources;

(4) The identification of federal funds available for research, development,

construction, and operation of alternative transportation fuels or synthetic natural

gas plants at laboratory, demonstration, and commercial scale;

(5) Establishment of a major federal energy research laboratory in Kentucky;

(6) Industry participation, both by single firms and by consortia, in research,

development, construction, and operation of alternative transportation fuels or

synthetic natural gas plants;

(7) Establishment or expansion of Kentucky state government incentives for

development, construction, or operation of alternative transportation fuels and

synthetic natural gas production facilities, including but not limited to financial

incentives, tax incentives, mandating or providing incentives for use of alternative

transportation fuels and synthetic natural gas by state government, school districts,

or utilities, authority to issue bonds, and acquisition and preliminary environmental

assessment of industrial sites; and

(8) Development of incentives to encourage energy conservation and renewable fuel

and energy use and deployment of renewable energy, including solar power, wind

power, hydropower, and other sources.