KRS 224.43-505: Kentucky pride fund -- Distribution -- Grants to eliminate illegal open

dumps -- Recycling and household hazardous waste grants program --

Incentives and rewards -- Implementation costs.

(1) A trust fund known as the Kentucky pride fund is here by established in the State

Treasury to receive money collected from environmental remediation fees

established in KRS 224.43 -500. The fund shall be used to accomplish the purposes

established in this section. Any money accruing to the fund in any fiscal y ear shall

not lapse but shall be carried forward to the next fiscal year. The fund may also

receive state appropriations, gifts, grants, and federal funds. All interest earned on

money in the fund shall be credited to the fund.

(2) The cabinet shall admini ster the Kentucky pride fund as provided by this section

and any administrative regulations promulgated pursuant thereto. Money from the

fund received by the cabinet shall be distributed as follows:

(a) Five million dollars ($5,000,000) of the money deposi ted into the fund each

year shall be retained by the cabinet, subject to the following conditions:

1. The cabinet may use up to two and one-half million dollars ($2,500,000)

of the money deposited into the fund as necessary for direct costs

associated with site identification, characterization, and corrective action

assessments of solid waste disposal sites and facilities that have ceased

accepting waste before July 1, 1992, including former permitted

municipal solid waste disposal facilities or abandoned s olid waste

disposal sites or facilities. The cabinet shall prioritize the sites and

facilities based on risks to human health, safety, and the environment,

and develop an implementation plan for closure and remediation of

those sites and facilities. Funds may be utilized to begin design and

implementation of proper closure and corrective action for those sites

and facilities with unabated pending violations.

2. The cabinet shall suspend until July, 2006, enforcement activity

regarding landfill closure and r emediation obligations against formerly

permitted municipal solid waste disposal facilities owned by a city or

county that ceased accepting waste prior to July 1, 1992, except as

necessary to abate an environmental emergency.

3. Two and one-half million dollars ($2,500,000) per year shall be used to

pay debt service on bonds sold by the Kentucky Infrastructure Authority

in the amount of at least twenty -five million dollars ($25,000,000), the

proceeds from which were deposited into the Kentucky pride fund

established in this section and utilized for undertaking closure and

corrective action at formerly permitted solid waste disposal facilities or

abandoned solid waste sites or facilities that ceased accepting waste

prior to July 1, 1992, which pose the most s ignificant environmental or

human health risk. Moneys not appropriated for the identification and

characterization of orphaned or abandoned landfills, or debt service,

may be used for the elimination of illegal open dumps, direct costs

associated with the closure of orphaned landfills, recycling grants,

household hazardous waste grants, or additional debt service.

(b) The interest on all moneys deposited into the fund, including unused debt

services, shall be distributed annually in an amount not to exceed one million

dollars ($1,000,000) to the Kentucky Environmental Education Council for

implementation of the environmental education center component of the

Environmental Education Master Plan.

(c) The remaining balance of the funds from the environmental re mediation fee

established in KRS 224.43 -500, plus any unspent interest revenues, shall be

utilized by the cabinet for grants to counties for the elimination of illegal open

dumps and to establish a recycling and household hazardous waste grants

program. An y county, waste management district, city, urban -county

government, or other political subdivision of the state shall be eligible to

apply for recycling and household hazardous waste grants under this program.

(d) Two and one-half million dollars ($2,500,000) shall be transferred in each of

the fiscal years 2002 -03 and 2003 -04 and annually thereafter from the road

fund established in KRS 48.010(15)(g) and two and one -half million dollars

($2,500,000) shall be transferred in each of the fiscal years 2002-03 and 2003-

04 and annually thereafter from the highway construction contingency fund to

the Kentucky pride fund established in this section, to be reserved and

distributed annually for anti -litter control programs wi th distributions to be

made as follows:

1. Thirty-three and one -third percent (33 -1/3%) of the money shall be

distributed annually based on each county's miles of public roads as a

percentage of the total miles of public roads in the Commonwealth at the

time of distribution;

2. Thirty-three and one -third percent (33 -1/3%) of the money shall be

distributed annually based on the county's rural population as a

percentage of the total rural population of the Commonwealth at the

time of distribution. "Rural popu lation" means the population residing

outside a city, town, or urban area with a population of two thousand

five hundred (2,500) persons or more;

3. Thirty-three and one -third percent (33 -1/3%) of the money shall be

distributed annually based on the county 's population as a percentage of

the total population of the Commonwealth at the time of distribution;

4. Of the moneys apportioned to counties on the basis of miles of public

roads and population as provided for in subparagraphs 1. and 3. of this

paragraph, the cabinet shall provide to the participating incorporated

cities within the jurisdiction of each respective county which, by

ordinance or other means, provides municipal solid waste collection

service, an amount of funds equal to the ratio of that cit y's total miles of

public roads in the county and the ratio of that city's population to the

population of the county, to be used for the purpose of litter cleanup on

public roads within city boundaries;

5. Moneys received by counties and cities pursuant t o this paragraph shall

be applied for by November 1 of the year preceding the grant

distribution and shall be used to meet obligations with respect to the

litter cleanup of public roads required by the provisions of KRS 224.43 -

345; and

6. Litter abatement funding rejected or otherwise returned from the grant

recipients shall be applied to the following year's allotment for litter

abatement grants.

(3) Any county may apply for a grant for the elimination of illegal open dumps subject

to the following provisions:

(a) The cabinet first shall prioritize expenditures from this fund among those

counties with approved solid waste management plans in order to address

those illegal open dumps posing the most significant public health and

environmental risks; and

(b) The cabinet shall provide grants to counties for eliminating illegal open

dumps. To be eligible for grant funding, the applicant shall:

1. Establish an effective universal municipal solid waste collection service

that is available to all county residences and businesses;

2. Employ a solid waste coordinator with enforcement powers;

3. Remain in compliance with an approved solid waste management plan

under this chapter;

4. Enter into agreement with the cabinet to provide a twenty -five percent

(25%) match which may be in kind to the grant amount and comply with

the grant criteria, except that the grant match may be waived for illegal

dump cleanups projected to cost more than fifty thousand dollars

($50,000);

5. Agree to use all legal methods at their disposal t o collect delinquent

solid waste collection fees; and

6. Establish a committee to be designated as the clean county committee,

composed of representatives from business, schools, agriculture,

homemakers, and other concerned citizens, to increase awareness and

develop education and enforcement strategies to keep the county free of

litter and illegal open dumps.

(4) The cabinet shall impose the following requirements for recycling and household

hazardous waste management grants to counties, waste management districts, cities,

urban-county governments, or other political subdivisions of the state:

(a) Each grantee shall provide a twenty -five percent (25%) match to the grant

amount which may be in kind and shall comply with the grant criteria;

(b) Each grantee s hall demonstrate that the proposed project will remain

financially viable after grant funds have been expended;

(c) The grantee shall demonstrate that the service added by the project is needed

and would otherwise be unavailable within the proposed service area; and

(d) Projects that create opportunities for regional recycling or regional household

hazardous waste management shall be given priority.

(5) Counties that meet the requirements set out above in subsection (3) of this section

shall be provided the following incentives and rewards by the cabinet:

(a) Extra points when applying for Land and Water Conservation Fund grants,

National Recreation Trails Funds grants, and funding from the state -funded

Community Rivers and Streams Program; and

(b) Priority consideration for funds from the Division of Conservation State Cost

Share Program for dumps on farmland and the Waste Tire Trust Fund for tire

dumps.

(6) The cabinet shall be reimbursed for reasonable costs related to the implementation

of the provisions of this section, not to exceed seven hundred fifty thousand dollars

($750,000) annually.