{"data":{"id":"us-ky/krs-154.27-030","jurisdiction":"us-ky","citation":"KRS 154.27-030","heading":"Application for incentives -- Review  -- Approval -- Approval of","body":"projects involving new, retrofitted, or upgraded alternative fuel facilities.\n(Effective July 1, 2021)\n(1) A company with an eligible project may submit an application for incentives to\nthe authority prior to making any capital investment it will seek to recover.\n(2) The application shall include:\n(a) The  name  of the applicant and identification of any affiliates of the\napplicant;\n(b) The type of eligible project;\n(c) A description of the location;\n(d) A full description of the eligible project scope, including but not limited to:\n1. A list and the status of permits, certificates, or approvals required by\nthe federal government, the Commonwealth,  or any jurisdiction\nwithin the Commonwealth;\n2. A  description of the carbon capture readiness of the facility, if the\nproposed eligible project is an alternative fuel facility or a gasification\nfacility;\n3. Any feasibility studies, including supporting documents;\n4. Anticipated sources of eligible project funding;\n5. The  total anticipated capital investment and the time period over\nwhich the capital investment will occur;\n6. The proposed feedstock and the estimated volume of feedstock use\nper year;\n7. A description of the proposed products or services to be produced\nby  the facility and the process that will be used to produce the\nproducts;\n8. The  planned capacity of the facility after construction, retrofit, or\nupgrade;\n9. The estimated output of the facility upon completion; and\n10. A plan for and description of how the company will employ Kentucky\nresidents at the facility and how the company  will ensure, to the\nextent possible, that workers employed during construction, retrofit,\nor upgrade of the facility are Kentucky residents. The plan shall\ninclude projected numbers;\n(e) Identification of the specific incentives sought;\n(f) Payment  of any applicable application fees required by the authority to\noffset reasonable costs of reviewing and processing the application; and\n(g) Other information as required by the authority.\n(3) The authority shall forward the application to the Department of Revenue and\nthe Office of Energy Policy, if applicable, for review and comment  with a date\nby which comments shall be provided back to the authority. The authority may\nforward the application to the Center for Applied Energy Research for review\nand comment as well.\n(4) (a) The authority shall review the application and shall verify that:\n1. The  applicant has  met  all of the statutory and  regulatory\nrequirements established by  this subchapter and  regulations\npromulgated thereunder;\n2. The  applicant has secured or is in the process of securing all\nnecessary permits, certificates, or approvals required by the federal\ngovernment,  the Commonwealth,  or any jurisdiction within the\nCommonwealth;\n3. The proposed facility is carbon capture ready, if the proposed facility\nis an alternative fuel facility or gasification facility;\n4. The  company  has a plan that includes a projected number  of\nKentucky residents that will be employed during the construction,\nretrofit, or upgrade of the facility and at the facility upon completion;\nand\n5. Any other requirements established by the authority.\n(b) The  Department  of Revenue  and  the Office of Energy  Policy, if\napplicable, shall review the application and shall verify that the company\nseeking approval and all affiliate companies are in good standing with the\ndepartment.\n(c) The authority may engage the services of outside consultants to assist in\nthe review of the application. Costs associated with the engagement of\noutside consultants shall be borne by the applicant.\n(5) (a) Upon  the earlier of:\n1. The  receipt of comments  and recommendations from the Office of\nEnergy  Policy, the Department of Revenue, and the Center for\nApplied Energy Research, if applicable; or\n2. The  expiration of the time period established by the authority for\nreceiving comments pursuant to subsection (3) of this section;\nthe authority may, through the adoption of a resolution, preliminarily\napprove an applicant for incentives under this subchapter.\n(b) Preliminary approval shall be based upon representations of the applicant\nin the application and attachments as well as other information submitted\nwith the application. The authority shall make a finding that, based upon\nthe applicant's representations, the project appears to be eligible for\nincentives pursuant to this subchapter.\n(c) Prior to final approval:\n1. The applicant shall:\na. Provide all supportive data requested by the authority;\nb. Secure all required permits or take appropriate steps to do so;\nand\nc. Cooperate  with  the  authority to  obtain opinions or\nrecommendations from any outside consultants; and\n2. The  authority shall, in consultation with the Office of Energy Policy\nor any other entity, verify the representations of the applicant.\n(d) 1. A  preliminarily approved  company  seeking  an  advance\ndisbursement employment incentive under KRS  154.27-090 shall,\nprior to receiving final approval from the authority, provide to the\nauthority a  labor market  analysis prepared  by  a  public\npostsecondary education institution in the Commonwealth  with\nknowledge  of the labor market in the region in which the eligible\nproject will be located.\n2. The labor market analysis shall evaluate the construction market in\nthe region where the proposed project is to be located and the\nestimated labor component  of the proposed project. The public\npostsecondary education institution may consult with the Center for\nApplied Energy  Research  or the Office of Energy  Policy in\ndetermining the types of laborers required for the construction,\nretrofit, or upgrade of the eligible facility.\n3. The  labor market analysis shall include an  estimate of the\npercentage of the estimated labor component that constitutes wages\nto be paid to Kentucky residents.\n(e) Based  upon all of the information available, the authority may, through\nadoption of a resolution, give its final approval and  authorize the\nexecution of a tax incentive agreement to be negotiated pursuant to KRS\n154.27-040.\n(6) The authority may request any materials and make any inquiries concerning an\napplication that the authority deems necessary.\n(7) The actual capital investment that may be recovered and percentages of each\nincentive that an approved company may receive shall be negotiated between\nthe approved company  and the authority and shall not exceed the limitations\nestablished by KRS 154.27-020.\n(8) The  General Assembly  recognizes that the incentives offered under this\nsubchapter include the possibility of the release of incentives to approved\ncompanies  prior to construction completion, and that the release of these\nincentives may  present more risk for the Commonwealth.  The authority is\ndirected to consider the possible increased risk to the Commonwealth  when\nnegotiating tax incentive agreements  that include incentives prior to\nconstruction completion, and to incorporate repayment or similar remedy\nprovisions in the tax incentive agreement to the extent the authority determines\nsuch  provisions are necessary to protect the investment made  by the\nCommonwealth  if the approved company fails to comply with the terms of the\ntax incentive agreement.\n(9) The  authority and the approved company  shall enter into a tax incentive\nagreement in accordance with KRS 154.27-040.\n(10) The authority, with input from the Office of Energy Policy, if applicable, and the\nDepartment of Revenue, shall establish additional standards and requirements\nfor the application process through the promulgation of administrative\nregulations in accordance with KRS  Chapter 13A. The standards shall include\nbut not be limited to the creditworthiness of eligible companies  and the\nlikelihood of economic success of the economic development project.\n(11) Notwithstanding any other provision of this subchapter, the authority may\napprove a maximum  of five (5) projects under this subchapter that involve an\nalternative fuel facility located in Kentucky that:\n(a) Is newly constructed on or after August 1, 2010, or an existing facility\nlocated in Kentucky that is retrofitted or upgraded on or after August 1,\n2010;\n(b) After the new construction, retrofit, or upgrade, primarily produces for sale\nalternative transportation fuels using natural gas or natural gas liquids as\nthe primary feedstock; and\n(c) Has a minimum capital investment of one million dollars ($1,000,000).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51756","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:55Z","sha256":"1c162949566bf8cef0cd8c3010acc3f84c6b588467e33a897ca155c74d3a0aec","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.27-020","next":"us-ky/krs-154.27-040"},"notice":"GroundRules: Original legal text. Not legal advice."}