KRS 278.710: Granting or denial of construction certificate -- Policy of General

Assembly -- Duties upon receipt of construction certificate -- Compliance and

monitoring.

(1) Within one hundred twenty (120) days of receipt of an administratively compl ete

application, or within one hundred eighty (180) days of receipt of an

administratively complete application if a hearing is requested, the board shall, by

majority vote, grant or deny a construction certificate, either in whole or in part,

based upon the following criteria:

(a) Impact of the facility on scenic surroundings, property values, the pattern and

type of development of adjacent property, and surrounding roads;

(b) Anticipated noise levels expected as a result of construction and operation of

the proposed facility;

(c) The economic impact of the facility upon the affected region and the state;

(d) Whether the facility is proposed for a site upon which existing generating

facilities, capable of generating ten megawatts (10MW) or more of electrici ty,

are currently located;

(e) Whether the proposed facility will meet all local planning and zoning

requirements that existed on the date the application was filed;

(f) Whether the additional load imposed upon the electricity transmission system

by use of the merchant electric generating facility will adversely affect the

reliability of service for retail customers of electric utilities regulated by the

Public Service Commission;

(g) Except where the facility is subject to a statewide setback established b y a

planning and zoning commission as provided in KRS 278.704(3) and except

for a facility proposed to be located on a site of a former coal processing plant

and the facility will use on -site waste coal as a fuel source, whether the

exhaust stack of the pr oposed merchant electric generating facility and any

wind turbine is at least one thousand (1,000) feet from the property boundary

of any adjoining property owner and all proposed structures or facilities used

in connection with the generation or storage o f electricity are two thousand

(2,000) feet from any residential neighborhood, school, hospital, or nursing

home facility, unless a different setback has been requested and approved

under KRS 278.704(4). If a planning and zoning commission has established

setback requirements that differ from those under KRS 278.704(2), the

applicant shall provide evidence of compliance. If the facility is proposed to

be located on site of a former coal processing plant and the facility will use

on-site waste coal as a fuel source, the applicant shall provide evidence of

compliance with the setback requirements provided in KRS 278.704(5);

(h) The efficacy of any proposed measures to mitigate adverse impacts that are

identified pursuant to paragraph (a), (b), (e), or (f) of t his subsection from the

construction or operation of the proposed facility;

(i) Whether the applicant has a good environmental compliance history;

(j) Whether the decommissioning plan is complete and complies with the

requirements of KRS 278.706(2)(m) and any other local requirements that

may apply; and

(k) Whether, for applications for the construction of wind power facilities, the

applicant and facilit ies will comply with the certifications required in KRS

278.706(2)(n).

(2) When considering an application for a construction certificate for a merchant

electric generating facility, the board may consider the policy of the General

Assembly to encourage th e use of coal as a principal fuel for electricity generation

as set forth in KRS 152.210, provided that any facility, regardless of fuel choice,

shall comply fully with KRS 224.10 -280, 278.212, 278.216, and 278.700 to

278.716.

(3) A person that has receive d a construction certificate for a merchant electric

generating facility shall:

(a) File with the Energy and Environment Cabinet the copy of the bond or other

similar security that, pursuant to KRS 278.706(2)(m)5., is required by a

county or a municipal go vernment or as part of a decommissioning plan, no

later than the date upon which the construction of the merchant generating

facility commences, and refile an updated copy at least once every five (5)

years thereafter;

(b) Not transfer rights and obligatio n under the certificate without having first

applied for and received a board determination that:

1. The acquirer has a good environmental compliance history; and

2. The acquirer has the financial, technical, and managerial capacity to

meet the obligations imposed by the terms of the approval or has the

ability to contract to meet these obligations;

(c) File with the Energy and Environment Cabinet a notice of the date that

construction is complete and the merchant electric generating facility begins

producing electricity for sale; and

(d) Following the date the merchant electric generating facility begins producing

electricity for sale, file a notice of any transaction involving the transfer or

sale of ownership, control, or the right to control the merchant electric

generating facility, with lessors of property where the merchant electric

generating facility is located, the Energy and Environment Cabinet, the county

judge/executive of a county and, if applicable, the mayor of a municipality in

which the merchant electric generating facility is located, within ten (10) days

of completing the transaction. The notice shall include the name, street

address, telephone number, and e -mail address of the person acquiring

ownership, control, or the right to control th e merchant electric generating

facility.

(4) A person that has acquired ownership, control, or the right to control a merchant

electric generating facility from the applicant or its successor or assign shall file

with the Energy and Environment Cabinet wit hin ten (10) days of completing the

acquisition:

(a) A written consent to assume the obligations set forth in the decommissioning

plan as of the date the acquisition occurred; and

(b) A notice of adoption of an existing bond or other similar security previ ously

filed pursuant to subsection (3)(a) of this section or a replacement bond or

other similar security that complies with KRS 278.706(2)(m)5. An existing

bond or other similar security shall be adopted, or a replacement bond or other

similar security shall be in place, as of the date the acquisition occurs so that

there is no lapse in coverage of the decommissioning bond or other similar

security. A person making a filing pursuant to this subsection shall file an

updated bond or other similar security th at complies with KRS

278.706(2)(m)5. at least once every five (5) years.

(5) Any person who transfers or sells ownership, control, or the right to control a

merchant electric generating facility shall remain liable for all existing

decommissioning obligations and bond requirements until the person who acquires

ownership, control, or the right to control the merchant electric generating facility

files with the Energy and Environment Cabinet the documents required by

subsection (4) of this section and they are accepted as complete by the secretary.

(6) Any application approval condition that requires the approval of the transfer of

control of a merchant electric generating facility after construction is complete shall

be void and unenforceable, but any transfe r of control of a merchant electric

generating facility shall be subject to compliance with the requirements of

subsections (3)(d), (4), and (5) of this section.

(7) Notwithstanding any provision of law to the contrary, including any order issued by

the board prior to June 29, 2023, after the board has approved an application for a

construction certificate for a merchant electric generating facility under this section,

the approved applicant has posted the bond or similar security required under KRS

278.706(2)(m)5., and the facility is constructed and begins generating electricity for

sale, the board's authority to enforce any conditions of the construction certificate,

including bonding and decommissioning requirements, shall end and the secretary

of the Energy and Environment Cabinet shall monitor and enforce the construction

certificate holder's compliance with the requirements of KRS 278.700 to 278.716

and the conditions of its construction certificate application approval.

(8) In addition to all complian ce monitoring and enforcement performed by the

secretary of the Energy and Environment Cabinet, and notwithstanding any

provision of law to the contrary, the secretary shall also review the

decommissioning plan required by KRS 278.706(2)(m) or by local ord inance,

license, or permit and the bond or similar security amount required by KRS

278.706(2)(m)5. or by local ordinance, license, or permit as needed, including any

time a transfer determination is made under subsection (5) of this section, but in any

event at least once every five (5) years. Upon review, the secretary of the Energy

and Environment Cabinet shall require the decommissioning plan to be updated and

the bond amount to be changed to match any significant change in circumstances or

change to the estimated cost of effectuating the decommissioning plan.

(9) After the facility for which an application for a construction certificate has been

approved is constructed and begins generating electricity for sale, the secretary of

the Energy and Environmen t Cabinet shall ensure ongoing compliance with the

mitigation measures that were conditions of the application approval under KRS

278.708(6) and any enforcement by the board of the mitigation measures shall

cease.

(10) During the period that the merchant e lectric generating facility is operational, if

solar panels or wind turbine components are replaced and discarded, the facility

owner-operator shall remove discarded solar panels or wind turbine components

from the site within ninety (90) days of completion of the work. Upon request of the

facility owner-operator, the secretary of the Energy and Environment Cabinet may

extend the time period under this subsection for removing discarded solar panels or

wind turbine components.