{"data":{"id":"us-ky/krs-278.710","jurisdiction":"us-ky","citation":"KRS 278.710","heading":"Granting or denial of construction certificate -- Policy of General","body":"Assembly -- Duties upon receipt of construction certificate -- Compliance and\nmonitoring.\n(1) Within one hundred twenty (120) days of receipt of an administratively compl ete\napplication, or within one hundred eighty (180) days of receipt of an\nadministratively complete application if a hearing is requested, the board shall, by\nmajority vote, grant or deny a construction certificate, either in whole or in part,\nbased upon the following criteria:\n(a) Impact of the facility on scenic surroundings, property values, the pattern and\ntype of development of adjacent property, and surrounding roads;\n(b) Anticipated noise levels expected as a result of construction and operation of\nthe proposed facility;\n(c) The economic impact of the facility upon the affected region and the state;\n(d) Whether the facility is proposed for a site upon which existing generating\nfacilities, capable of generating ten megawatts (10MW) or more of electrici ty,\nare currently located;\n(e) Whether the proposed facility will meet all local planning and zoning\nrequirements that existed on the date the application was filed;\n(f) Whether the additional load imposed upon the electricity transmission system\nby use of  the merchant electric generating facility will adversely affect the\nreliability of service for retail customers of electric utilities regulated by the\nPublic Service Commission;\n(g) Except where the facility is subject to a statewide setback established b y a\nplanning and zoning commission as provided in KRS 278.704(3) and except\nfor a facility proposed to be located on a site of a former coal processing plant\nand the facility will use on -site waste coal as a fuel source, whether the\nexhaust stack of the pr oposed merchant electric generating facility and any\nwind turbine is at least one thousand (1,000) feet from the property boundary\nof any adjoining property owner and all proposed structures or facilities used\nin connection with the generation or storage o f electricity are two thousand\n(2,000) feet from any residential neighborhood, school, hospital, or nursing\nhome facility, unless a different setback has been requested and approved\nunder KRS 278.704(4). If a planning and zoning commission has established\nsetback requirements that differ from those under KRS 278.704(2), the\napplicant shall provide evidence of compliance. If the facility is proposed to\nbe located on site of a former coal processing plant and the facility will use\non-site waste coal as a fuel  source, the applicant shall provide evidence of\ncompliance with the setback requirements provided in KRS 278.704(5);\n(h) The efficacy of any proposed measures to mitigate adverse impacts that are\nidentified pursuant to paragraph (a), (b), (e), or (f) of t his subsection from the\nconstruction or operation of the proposed facility;\n(i) Whether the applicant has a good environmental compliance history;\n(j) Whether the decommissioning plan is complete and complies with the\nrequirements of KRS 278.706(2)(m) and any other local requirements that\nmay apply; and\n(k) Whether, for applications for the construction of wind power facilities, the\napplicant and facilit ies will comply with the certifications required in KRS\n278.706(2)(n).\n(2) When considering an application for a construction certificate for a merchant\nelectric generating facility, the board may consider the policy of the General\nAssembly to encourage th e use of coal as a principal fuel for electricity generation\nas set forth in KRS 152.210, provided that any facility, regardless of fuel choice,\nshall comply fully with KRS 224.10 -280, 278.212, 278.216, and 278.700 to\n278.716.\n(3) A person that has receive d a construction certificate for a merchant electric\ngenerating facility shall:\n(a) File with the Energy and Environment Cabinet the copy of the bond or other\nsimilar security that, pursuant to KRS 278.706(2)(m)5., is required by a\ncounty or a municipal go vernment or as part of a decommissioning plan, no\nlater than the date upon which the construction of the merchant generating\nfacility commences, and refile an updated copy at least once every five (5)\nyears thereafter;\n(b) Not transfer rights and obligatio n under the certificate without having first\napplied for and received a board determination that:\n1. The acquirer has a good environmental compliance history; and\n2. The acquirer has the financial, technical, and managerial capacity to\nmeet the obligations  imposed by the terms of the approval or has the\nability to contract to meet these obligations;\n(c) File with the Energy and Environment Cabinet a notice of the date that\nconstruction is complete and the merchant electric generating facility begins\nproducing electricity for sale; and\n(d) Following the date the merchant electric generating facility begins producing\nelectricity for sale, file a notice of any transaction involving the transfer or\nsale of ownership, control, or the right to control the merchant  electric\ngenerating facility, with lessors of property where the merchant electric\ngenerating facility is located, the Energy and Environment Cabinet, the county\njudge/executive of a county and, if applicable, the mayor of a municipality in\nwhich the merchant electric generating facility is located, within ten (10) days\nof completing the transaction. The notice shall include the name, street\naddress, telephone number, and e -mail address of the person acquiring\nownership, control, or the right to control th e merchant electric generating\nfacility.\n(4) A person that has acquired ownership, control, or the right to control a merchant\nelectric generating facility from the applicant or its successor or assign shall file\nwith the Energy and Environment Cabinet wit hin ten (10) days of completing the\nacquisition:\n(a) A written consent to assume the obligations set forth in the decommissioning\nplan as of the date the acquisition occurred; and\n(b) A notice of adoption of an existing bond or other similar security previ ously\nfiled pursuant to subsection (3)(a) of this section or a replacement bond or\nother similar security that complies with KRS 278.706(2)(m)5. An existing\nbond or other similar security shall be adopted, or a replacement bond or other\nsimilar security shall be in place, as of the date the acquisition occurs so that\nthere is no lapse in coverage of the decommissioning bond or other similar\nsecurity. A person making a filing pursuant to this subsection shall file an\nupdated bond or other similar security th at complies with KRS\n278.706(2)(m)5. at least once every five (5) years.\n(5) Any person who transfers or sells ownership, control, or the right to control a\nmerchant electric generating facility shall remain liable for all existing\ndecommissioning obligations and bond requirements until the person who acquires\nownership, control, or the right to control the merchant electric generating facility\nfiles with the Energy and Environment Cabinet the documents required by\nsubsection (4) of this section and they are accepted as complete by the secretary.\n(6) Any application approval condition that requires the approval of the transfer of\ncontrol of a merchant electric generating facility after construction is complete shall\nbe void and unenforceable, but any transfe r of control of a merchant electric\ngenerating facility shall be subject to compliance with the requirements of\nsubsections (3)(d), (4), and (5) of this section.\n(7) Notwithstanding any provision of law to the contrary, including any order issued by\nthe board prior to June 29, 2023, after the board has approved an application for a\nconstruction certificate for a merchant electric generating facility under this section,\nthe approved applicant has posted the bond or similar security required under KRS\n278.706(2)(m)5., and the facility is constructed and begins generating electricity for\nsale, the board's authority to enforce any conditions of the construction certificate,\nincluding bonding and decommissioning requirements, shall end and the secretary\nof the Energy and Environment Cabinet shall monitor and enforce the construction\ncertificate holder's compliance with the requirements of KRS 278.700 to 278.716\nand the conditions of its construction certificate application approval.\n(8) In addition to all complian ce monitoring and enforcement performed by the\nsecretary of the Energy and Environment Cabinet, and notwithstanding any\nprovision of law to the contrary, the secretary shall also review the\ndecommissioning plan required by KRS 278.706(2)(m) or by local ord inance,\nlicense, or permit and the bond or similar security amount required by KRS\n278.706(2)(m)5. or by local ordinance, license, or permit as needed, including any\ntime a transfer determination is made under subsection (5) of this section, but in any\nevent at least once every five (5) years. Upon review, the secretary of the Energy\nand Environment Cabinet shall require the decommissioning plan to be updated and\nthe bond amount to be changed to match any significant change in circumstances or\nchange to the estimated cost of effectuating the decommissioning plan.\n(9) After the facility for which an application for a construction certificate has been\napproved is constructed and begins generating electricity for sale, the secretary of\nthe Energy and Environmen t Cabinet shall ensure ongoing compliance with the\nmitigation measures that were conditions of the application approval under KRS\n278.708(6) and any enforcement by the board of the mitigation measures shall\ncease.\n(10) During the period that the merchant e lectric generating facility is operational, if\nsolar panels or wind turbine components are replaced and discarded, the facility\nowner-operator shall remove discarded solar panels or wind turbine components\nfrom the site within ninety (90) days of completion of the work. Upon request of the\nfacility owner-operator, the secretary of the Energy and Environment Cabinet may\nextend the time period under this subsection for removing discarded solar panels or\nwind turbine components.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57884","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"d1f26a6c4ceb53f0ee92a0971c07df34f4e5afbbc0eac33645bf5e0cfbbe66c3","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.708","next":"us-ky/krs-278.712"},"notice":"GroundRules: Original legal text. Not legal advice."}