{"data":{"id":"us-ky/krs-65.206","jurisdiction":"us-ky","citation":"KRS 65.206","heading":"Establishment of program to advance conservation and efficient use of","body":"energy and water resources.\n(1) Pursuant to KRS 65.205 to 65.209, the governing body of a local government may\nestablish a program to advance the conservation and efficient use of ener gy and\nwater resources within its jurisdiction, which program is hereby declared to be a\nvalid exercise of the powers of local government and is in the best interest of the\npeople of the Commonwealth, by allowing for energy projects to be financed by\nassessments imposed upon the real property being improved through the energy\nproject. Nothing in KRS 65.205 to 65.209 shall be interpreted to:\n(a) Expand the powers of eminent domain for a local government, state agency,\nor private entity or to allow a local go vernment, state agency, or private entity\nto use the powers of eminent domain under this program; or\n(b) Disregard or allow contravention of any net metering ordinance or policy, any\ngenerator interconnection ordinance or policy, or any rate ordinance duly\nadopted by the governing body.\n(2) (a) To establish a program, the governing body of a local government shall adopt\na resolution or ordinance providing the terms and conditions of the program,\nincluding but not limited to:\n1. A statement that the local go vernment intends to utilize assessments on\nrelevant real property to support private sector energy projects;\n2. The designation of an EPAD, and a description of the boundaries\nthereof; and\n3. A procedure for the owners of record of real property located wi thin an\nEPAD to petition the local government for participation in the program.\n(b) Once a program is established, the governing body of a local government may\namend the terms and conditions of the program by resolution or ordinance;\nexcept that no amendme nt shall be adopted to retroactively change the\nconditions under which an existing assessment was imposed, unless the owner\nof record of the affected real property consents to the amendment in writing.\n(c) A local government may:\n1. Hire program staff, or contract with a third -party entity to administer a\nprogram;\n2. Impose fees on participating property owners to offset the costs of\nadministering the program, including assessment and collection\nfunctions of various county offices; except that these fees sh all not\nexceed the cost of services performed; and\n3. Engage financing for the purpose of administering the program from\nfinancial institutions with a physical presence in Kentucky whose\ndeposits are insured by the Federal Deposit Insurance Corporation.\n(d) Any combination of local governments may agree to jointly implement or\nadminister a program.\n(3) (a) The geographic area designated by the governing body of a local government\nas the EPAD:\n1. May include the entire local government or any portion thereof; and\n2. Shall be wholly within the boundaries of the local government.\n(b) A local government may designate more than one (1) separate EPAD within\nits boundaries.\n(4) An authorized official of a local government that has established a program may\napprove a request from the owner of record of real property located within an EPAD\nto impose an assessment upon the property, which shall be used to repay the owner's\nfinancing of an energy project on that property and the costs of any upgrades to the\nelectrical or gas distribution system connected to that property necessary to\naccommodate the energy improvement. The upgrade costs shall be paid to the\nowner of the electrical distribution system. The financing may be provided by a\nthird party or, if authorized by the local government, by any local government.\n(5) Each energy project approved for participation in the program shall include a review\nof the property's baseline energy or water usage conditions and the energy or water\nsavings projected to be achieved as a result of the energy project.\n(6) A program may authorize a participating property owner to:\n(a) Directly purchase; or\n(b) Acquire by contract, through a lease, power purchase agreement, or other\nservice contract;\nthe equipment and materials necessary f or the installation or modification of an\nenergy improvement.\n(7) In addition to the authority provided in the Kentucky Revised Statutes for local\ngovernments to levy special assessments with the same lien status as a property tax,\nthe governing body of a local government that establishes a program pursuant to\nthis section may exercise powers granted under KRS 65.205 to 65.209.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44418","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"b849719b7c90116a2c84b73b6d072659cfa1d08c20848ba27f6417d0397be985","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.205","next":"us-ky/krs-65.207"},"notice":"GroundRules: Original legal text. Not legal advice."}