AN ACT relating to nuclear energy development.

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AN ACT relating to nuclear energy development. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 164 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Affiliate" means any person, partnership, or corporation that controls, is 6
controlled by, or is under common control with, a utility; 7
(b) "Authority" means the Kentucky Nuclear Energy Development Authority 8
established in Section 4 of this Act; 9
(c) "Combined operating license" means a license issued by the United States 10
Nuclear Regulatory Commission pursuant to 10 C.F.R. sec. 52.71 et seq., or 11
other licensing frameworks as may be adopted in federal regulations by the 12
United States Nuclear Regulatory Commission for advanced nuclear 13
generating reactors, that enables its holder to construct and operate a 14
nuclear power plant at a specific site; 15
(d) "Construction permit" means a permit issued by the United States Nuclear 16
Regulatory Commission pursuant to 1 0 C.F.R. pt. 50 that enables its holder 17
to construct a nuclear power plant at a specific site; 18
(e) "Early site permit" means a permit issued by the United States Nuclear 19
Regulatory Commission pursuant to 10 C.F.R. sec. 52.12 et seq. that 20
enables its holder to secure federal site approval for a nuclear power plant 21
site prior to seeking an operating reactor license from the United States 22
Nuclear Regulatory Commission; 23
(f) "Eligible applicant" means any utility or any affiliate of a utility and any 24
current or prospective customer of a utility that is acting in partnership or 25
collaboration with the utility or the affiliate; 26
(g) "Generation III Plus" means the generation of nuclear reactor design 27
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following Generation III that incorporates passive and other safety 1
measures and design improvements not included in previous nuclear 2
reactor designs; 3
(h) "Generation IV" means the nuclear reactor designs identified and selected 4
by the Generation IV International Forum as follows: 5
1. Sodium-cooled fast reactors; 6
2. Gas-cooled fast reactors; 7
3. Lead-cooled fast reactors; 8
4. Molten salt reactors; 9
5. Supercritical water-cooled reactors; and 10
6. Very high temperature reactors; 11
(i) "Nuclear energy generating facility" means a facility containing a nuclear 12
reactor of Generation III Plus, Generation IV, or later design that produces 13
electricity, at least some of which is sold to the public; and 14
(j) "Utility" means a person, firm, corporation, association, cooperative 15
corporation, federally owned electric utility corporation, or mun icipal 16
corporation who owns, controls, operates, or manages any facility used or to 17
be used for or in connection with the generation, production, transmission, 18
or distribution of electricity to or for the public for compensation. 19
(2) (a) The authority shal l create and implement the Nuclear Reactor Site 20
Readiness Pilot Program to facilitate the application for and procurement 21
of early site permits, construction permits, or combined operating licenses 22
from the United States Nuclear Regulatory Commission for t he siting of 23
new nuclear energy generating facilities in the Commonwealth. 24
(b) Upon recommendation of the authority, the General Assembly may award 25
eligible applicants grant funding of up to one -third (1/3) of the actual costs 26
incurred in applying for and procuring an early site permit, construction 27
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permit, or combined operating license, not to exceed twenty -five million 1
dollars ($25,000,000) per project. 2
(c) The authority shall: 3
1. Create grant applications; 4
2. Establish grant applicant eligibility requirements; 5
3. Establish objective scoring criteria to evaluate grant applications; 6
4. Review any partnership agreement between eligible applicants for 7
validity and completeness and to ensure that the agreement provides 8
for the surety bonding or similar security requirements required under 9
subsection (4) of this section and repayment responsibilities for all 10
partners in the event that forfeiture and repayment of grant funding is 11
required under subsection (5) of this section; and 12
5. Make determinations on appli cant eligibility and evaluate and score 13
each eligible applicant's grant application, in consultation with the 14
Energy and Environment Cabinet's Office of Energy Policy and the 15
Cabinet for Economic Development, according to the following 16
criteria: 17
a. The location, suitability, and previous use of the site for which 18
the early site permit, construction permit, or combined operating 19
license is sought; 20
b. The economic condition of the region where the new nuclear 21
energy generating facility would be located; 22
c. The economic impact that the siting of a new nuclear energy 23
generating facility would have in the region; 24
d. Whether, in relation to other pending or past grant applications 25
or awards under this section, the proposed site would be located 26
in a geographically diverse region of the Commonwealth; 27
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e. The amount of additional investment being made in the proposed 1
project by the eligible applicant or applicants or other sources; 2
and 3
f. Any other criteria the authority deems appropriate to evaluate. 4
(d) Notwithstanding any provision of law to the contrary , any information, 5
data, or records provided as part of an application for grant funding under 6
this section shall be confidential and exempt from disclosure under the 7
requirements of KRS 61.870 to 61.884. 8
(3) (a) To be eligible to apply for grant funding u nder this section, eligible 9
applicants must demonstrate that: 10
1. The community where the proposed site of the new nuclear energy 11
generating facility would be located has applied for a nuclear -ready 12
community designation under KRS 164.2804; and 13
2. There wou ld be material benefits, including but not limited to the 14
provision of electric utility service, job creation, and return on 15
investment to the ratepayers and the impacted community to be served 16
by the proposed new nuclear energy generating facility. 17
(b) To be eligible to be awarded grant funding under this section, eligible 18
applicants must demonstrate that the community where the proposed site of 19
the new nuclear energy generating facility would be located has received a 20
nuclear-ready community designation under KRS 164.2804. 21
(4) In exchange for any grant funding authorized by the General Assembly under 22
this section, the utility or the affiliate and any partners it may have shall procure 23
a surety bond or other similar security acceptable to the authority in t he amount 24
of the grant funding to be awarded. The surety bond or similar security shall bind 25
the principal or principals and the surety to the Commonwealth to repay all grant 26
moneys forfeited pursuant to subsection (5) of this section. The surety bond or 27
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other similar security shall be continuous and remain in effect until the 1
completion of the construction of the nuclear energy generating facility for which 2
the permit or license was issued or upon the repayment of all forfeited grant 3
funds pursuant to subs ection (5) of this section. Any cancellation of the bond or 4
similar security shall not occur until thirty (30) days written notice is provided by 5
the provider of the surety bond or other similar security to the authority. 6
(5) A grant funding recipient and all of its partners shall forfeit and repay all grant 7
funding awarded under this section within sixty (60) days of: 8
(a) If it has not already done so, failing to apply to the United States Nuclear 9
Regulatory Commission for an early site permit within one ( 1) year of 10
receiving any grant funding under this section; 11
(b) Failing to apply to the United States Nuclear Regulatory Commission for a 12
construction permit or combined operating license for a nuclear energy 13
generating facility, or for a necessary license issued under other licensing 14
frameworks that may be adopted in federal regulations by the United States 15
Nuclear Regulatory Commission for advanced nuclear generating reactors, 16
for which an early site permit was awarded within five (5) years of obtaining 17
the early site permit. The authority may approve extensions of the deadline 18
established by this paragraph in one (1) year increments for good cause 19
shown; 20
(c) Failing to commence construction of the nuclear energy generating facility 21
for which all necessary permits or licenses have been awarded by the United 22
States Nuclear Regulatory Commission within ten (10) years of obtaining 23
all necessary permits or licenses. The authority may approve extensions of 24
the deadline established by this paragraph in one (1) yea r increments for 25
good cause shown; or 26
(d) The transferring of the entirety of a utility's or affiliate's interest in the 27
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early site permit, the construction permit, or the combined operating license 1
to an entity other than another utility prior to the comm encement of 2
construction of the nuclear energy generating facility for which a permit or 3
license was awarded, unless the authority finds that the transfer is in the 4
best interest of the Commonwealth. 5
SECTION 2. A NEW SEC TION OF KRS CHAPTER 278 IS CREATED TO 6
READ AS FOLLOWS: 7
(1) As used in this section: 8
(a) "Combined operating license" means a license issued by the United States 9
Nuclear Regulatory Commission pursuant to 10 C.F.R. sec. 52.71 et seq. 10
that enables its holder to construct and operate a nuclear power plant at a 11
specific site; 12
(b) "Construction permit" means a permit issued by the United States Nuclear 13
Regulatory Commission pursuant to 10 C.F.R. pt. 50 that enables its holder 14
to construct a nuclear power plant at a specific site; 15
(c) "Early site permit" means a permit issued by the United States Nuclear 16
Regulatory Commission pursuant to 10 C.F.R. sec. 52.12 et seq. that 17
enables its holder to secure federal site approval for a nuclear power plant 18
site prior to seek ing an operating reactor license from the United States 19
Nuclear Regulatory Commission; 20
(d) "Generation III Plus" means the generation of nuclear reactor design 21
following Generation III that incorporates passive and other safety 22
measures and design improvem ents not included in previous nuclear 23
reactor designs; 24
(e) "Generation IV" means the nuclear reactor designs identified and selected 25
by the Generation IV International Forum as follows: 26
1. Sodium-cooled fast reactors; 27
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2. Gas-cooled fast reactors; 1
3. Lead-cooled fast reactors; 2
4. Molten salt reactors; 3
5. Supercritical water-cooled reactors; and 4
6. Very high temperature reactors; and 5
(f) "Nuclear energy generating facility" means a facility containing a nuclear 6
reactor of Generation III Plus, Generation IV, or later design that produces 7
electricity, at least some of which is sold to the public. 8
(2) (a) Notwithstanding any provision of law to the contrary, upon application by a 9
regulated utility, the commission may allow for the recovery of costs which 10
are not covered in the existing rates of the utility that have been incurred in 11
applying for and procuring an early site permit, construction permit, or 12
combined operating license for a new nuclear energy generating facility to 13
be located within the Commonwealth. 14
(b) The commission shall not allow cost recovery under this section for any 15
amounts that have been offset by grant funding awarded pu rsuant to 16
Section 1 of this Act. 17
Section 3. KRS 154.32-010 is amended to read as follows: 18
(1) "Activation date" means the date established in the tax incentive agreement that is 19
within two (2) years of final approval; 20
(2) "Affiliate" means the following: 21
(a) Members of a family, including only brothers and sisters of the whole or half 22
blood, spouse, ancestors, and lineal descendants of an individual; 23
(b) An individual, and a corporation more than fifty percent (50%) in va lue of the 24
outstanding stock of which is owned, directly or indirectly, by or for that 25
individual; 26
(c) An individual, and a limited liability company of which more than fifty 27
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percent (50%) of the capital interest or profits are owned or controlled, 1
directly or indirectly, by or for that individual; 2
(d) Two (2) corporations which are members of the same controlled group, which 3
includes and is limited to: 4
1. One (1) or more chains of corporations connected through stock 5
ownership with a common parent corporation if: 6
a. Stock possessing more than fifty percent (50%) of the total 7
combined voting power of all classes of stock entitled to vote or 8
more than fifty percent (50%) of the total value of shares of all 9
classes of stock of each of the corporations, except the common 10
parent corporation, is owned by one (1) or more of the other 11
corporations; and 12
b. The common parent corporation owns stock possessing more than 13
fifty percent (50%) of the total combined voting power of all 14
classes of stock entitled to vote or more than fifty percent (50%) of 15
the total value of shares of all classes of stock of at least one (1) of 16
the other corporations, excluding, in computing the voting power 17
or value, stock owned directly by the other corporations; or 18
2. Two (2) or more corpora tions if five (5) or fewer persons who are 19
individuals, estates, or trusts own stock possessing more than fifty 20
percent (50%) of the total combined voting power of all classes of stock 21
entitled to vote or more than fifty percent (50%) of the total value of 22
shares of all classes of stock of each corporation, taking into account the 23
stock ownership of each person only to the extent the stock ownership is 24
identical with respect to each corporation; 25
(e) A grantor and a fiduciary of any trust; 26
(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a 27
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grantor of both trusts; 1
(g) A fiduciary of a trust and a beneficiary of that trust; 2
(h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a 3
grantor of both trusts; 4
(i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value 5
of the outstanding stock of which is owned, directly or indirectly, by or for the 6
trust or by or for a person who is a grantor of the trust; 7
(j) A fiduciary of a trus t and a limited liability company more than fifty percent 8
(50%) of the capital interest, or the interest in profits, of which is owned 9
directly or indirectly, by or for the trust or by or for a person who is a grantor 10
of the trust; 11
(k) A corporation, a partnership, or a limited partnership if the same persons own: 12
1. More than fifty percent (50%) in value of the outstanding stock of the 13
corporation; and 14
2. More than fifty percent (50%) of the capital interest, or the profits 15
interest, in the partnership or limited partnership; 16
(l) A corporation and a limited liability company if the same persons own: 17
1. More than fifty percent (50%) in value of the outstanding stock of the 18
corporation; and 19
2. More than fifty percent (50%) of the capital interest or the profits in the 20
limited liability company; 21
(m) A partnership or limited partnership and a limited liabili ty company if the 22
same persons own: 23
1. More than fifty percent (50%) of the capital interest or profits in the 24
partnership or limited partnership; and 25
2. More than fifty percent (50%) of the capital interest or the profits in the 26
limited liability company; 27
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(n) An S corporation and another S corporation if the same persons own more 1
than fifty percent (50%) in value of the outstanding stock of each corporation; 2
S corporation designation being the same as that designation under the 3
Internal Revenue Code of 1986, as amended; 4
(o) An S corporation and a C corporation, if the same persons own more than 5
fifty percent (50%) in value of the outstanding stock of each corporation; S 6
and C corporation designations being the same as those designations under the 7
Internal Revenue Code of 1986, as amended; or 8
(p) Two (2) or more limited liability companies, if the same persons own more 9
than fifty percent (50%) of the capital interest or are entitled to more than fifty 10
percent (50%) of the capital profits in the limited liability companies; 11
(3) "Agribusiness" means the processing of raw agricultural products, including but not 12
limited to timber and industrial hemp, or the performance of value -added functions 13
with regard to raw agricultural products; 14
(4) "Alternative fuel produc tion" means a Kentucky operation that primarily produces 15
alternative transportation fuels for sale. The alternative fuel production may 16
produce electricity as a by-product if the primary function of the operations remains 17
the production and sale of alternative transportation fuels; 18
(5) "Alternative transportation fuels" has the same meaning as in KRS 152.715; 19
(6) "Approved company" means an eligible company that has received final approval 20
to receive incentives under this subchapter; 21
(7) "Approved costs" means the amount of eligible costs approved by the authority at 22
final approval; 23
(8) "Authority" means the Kentucky Economic Development Finance Authority 24
established by KRS 154.20-010; 25
(9) "Biomass resources" has the same meaning as in KRS 152.715; 26
(10) "Capital lease" means a lease classified as a capital lease by the Statement of 27
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Financial Accounting Standards No. 13, Accounting for Leases, issued by the 1
Financial Accounting Standards Board, November 1976, as amended; 2
(11) "Carbon dioxide or hydrogen transm ission pipeline" means the in -state portion of a 3
pipeline, including appurtenant facilities, property rights, and easements, that is 4
used exclusively for the purpose of transporting carbon dioxide or hydrogen to the 5
point of sale, storage, or other carbon or hydrogen management applications; 6
(12) "Coal severing and processing" means activities resulting in the eligible company 7
being subject to the tax imposed by KRS Chapter 143; 8
(13) "Commonwealth" means the Commonwealth of Kentucky; 9
(14) "Confirmed approved costs" means: 10
(a) For owned economic development projects, the documented eligible costs 11
incurred on or before the activation date; or 12
(b) For leased economic development projects: 13
1. The documented eligible costs incurred on or before the activation dat e; 14
and 15
2. Estimated rent to be incurred by the approved company throughout the 16
term of the tax incentive agreement. 17
For both owned and leased economic development projects, "confirmed approved 18
costs" may be less than approved costs, but shall not be more than approved costs; 19
(15) "Department" means the Department of Revenue; 20
(16) "Economic development project" means: 21
(a) The acquisition, leasing, or construction of a new facility; 22
(b) The acquisition, leasing, rehabilitation, or expansion of an existing facility; or 23
(c) The installation and equipping of a facility; 24
by an eligible company. "Economic development project" does not include any 25
economic development project that will result in the replacement of facilities 26
existing in the Commonwealth, except as provided in KRS 154.32-060; 27
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(17) (a) "Eligible company" means any corporation, limited liability company, 1
partnership, limited partnership, sole proprietorship, business trust, or any 2
other entity with a proposed economic development project that is engaged in 3
or is planning to be engaged in one (1) or more of the following activities 4
within the Commonwealth: 5
1. Manufacturing; 6
2. Agribusiness; 7
3. Nonretail service or technology; 8
4. Headquarters operations, regardless of the underlying business activity 9
of the company; 10
5. Alternative fuel, gasification, energy -efficient alternative fuel, or 11
renewable energy production; 12
6. Carbon dioxide or hydrogen transmission pipeline; 13
7. Coal severing and processing;[ or] 14
8. Hospital operations; or 15
9. Development of the nuclear energy ecosystem, including but not 16
limited to nuclear energy generating facility siting and development. 17
(b) "Eligible company" does not include companies where the primary act ivity to 18
be conducted within the Commonwealth is forestry, fishing, the provision of 19
utilities, except as provided in paragraph (a)9. of this subsection , 20
construction, wholesale trade, retail trade, real estate, rental and leasing, 21
educational services, ac commodation and food services, or public 22
administration services; 23
(18) "Eligible costs" means: 24
(a) For owned economic development projects: 25
1. Start-up costs; 26
2. Nonrecurring obligations incurred for labor and nonrecurring payments 27
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to contractors, subcontr actors, builders, and materialmen in connection 1
with the economic development project; 2
3. The cost of acquiring land or rights in land and any cost incidental 3
thereto, including recording fees; 4
4. The cost of contract bonds and of insurance of all kinds th at may be 5
required or necessary for completion of an economic development 6
project which is not paid by a contractor or otherwise provided for; 7
5. All costs of architectural and engineering services, including test 8
borings, surveys, estimated plans and spec ifications, preliminary 9
investigations, and supervision of construction, as well as for the 10
performance of all the duties required for construction of the economic 11
development project; 12
6. All costs which are required to be paid under the terms of any contr act 13
for the economic development project; 14
7. All costs incurred for construction activities, including site tests and 15
inspections; subsurface site work; excavation; removal of structures, 16
roadways, cemeteries, and other surface obstructions; filling, gradi ng, 17
and providing drainage and storm water retention; installation of utilities 18
such as water, sewer, sewage treatment, gas, electric, communications, 19
and similar facilities; off -site construction of utility extensions to the 20
boundaries of the real estate; construction and installation of railroad 21
spurs as needed to connect the economic development project to existing 22
railways; or similar activities as the authority may determine necessary 23
for construction of the economic development project; and 24
8. All other costs of a nature comparable to those described above; and 25
(b) For leased economic development projects: 26
1. Start-up costs; 27
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2. Building/leasehold improvements; and 1
3. Fifty percent (50%) of the estimated annual rent for each year of the tax 2
incentive agreement. 3
Notwithstanding any other provision of this subsection, for economic development 4
projects that are not in enhanced incentive counties, the cost of equipment eligible 5
for recovery as an eligible cost shall not exceed twenty thousand dollars ($20,000) 6
for each new full-time job created as of the activation date; 7
(19) "Employee benefits" means payments by an approved company for its full -time 8
employees for health insurance, life insurance, dental insurance, vision insurance, 9
defined benefits, 401(k), or similar plans; 10
(20) "Energy-efficient alternative fuel production" means a Kentucky operation that 11
produces for sale energy-efficient alternative fuels; 12
(21) "Energy-efficient alternative fuels" means homogeneous fuels that: 13
(a) Are produced fro m processes designed to densify feedstock coal, waste coal, 14
or biomass resources; and 15
(b) Have an energy content that is greater than the feedstock coal, waste coal, or 16
biomass resource; 17
(22) "Enhanced incentive counties" means counties certified by the au thority pursuant to 18
KRS 154.32-050; 19
(23) "Final approval" means the action taken by the authority authorizing the eligible 20
company to receive incentives under this subchapter; 21
(24) (a) "Full-time job" means a job held by a person who: 22
1. Is required to work a minimum of thirty-five (35) hours per week; and 23
2. a. Is subject to the Kentucky individual income tax imposed by KRS 24
141.020; or 25
b. Works remotely away from the economic development project if 26
the job meets all of the following conditions: 27
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i. Is held by a Kentucky resident; 1
ii. Was created as a result of the economic development project; 2
and 3
iii. The payroll of this job is expensed to the economic 4
development project. 5
(b) "Full-time job" does not include a job held by a resident of any state with a 6
reciprocal agreement between the Commonwealth and the other state as 7
described in KRS 141.070; 8
(25) "Gasification process" means a process that converts any carbon -containing 9
material into a synthesis gas composed primarily of carbon monoxide and 10
hydrogen; 11
(26) "Gasification production" means a Kentucky operation that primarily produces for 12
sale: 13
(a) Alternative transportation fuels; 14
(b) Synthetic natural gas; 15
(c) Chemicals; 16
(d) Chemical feedstocks; or 17
(e) Liquid fuels; 18
from coal, waste coal, coal -processing waste, or biomass resources, through a 19
gasification process. The gasification production may produce electricity as a by -20
product if the primary function of the operations remains the production and sale of 21
alternative transportation fuels, synthetic natural gas, chemicals, chemical 22
feedstocks, or liquid fuels; 23
(27) "Headquarters" means the principal office where the principal executives of the 24
entity are located and from which other personnel, branches, affiliates, off ices, or 25
entities are controlled; 26
(28) "Hospital" means a facility licensed by the Cabinet for Health and Family Services 27
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under KRS Chapter 216B for the operation of a hospital and the basic services 1
provided by a hospital; 2
(29) "Incentives" means the ince ntives available under this subchapter, as listed in KRS 3
154.32-020(3); 4
(30) "Job target" means the annual average number of new full -time jobs that the 5
approved company commits to create and maintain at the economic development 6
project, which shall not be less than ten (10) new full-time jobs; 7
(31) "Kentucky gross receipts" has the same meaning as in KRS 141.0401; 8
(32) "Kentucky gross profits" has the same meaning as in KRS 141.0401; 9
(33) "Lease agreement" means an agreement between an approved company and an 10
unrelated entity conveying the right to use a facility, the terms of which reflect an 11
arms' length transaction. "Lease agreement" does not include a capital lease; 12
(34) "Leased project" means an economic development project site occupied by an 13
approved company pursuant to a lease agreement; 14
(35) "Manufacturing" means any activity involving: 15
(a) Processing, assembling, or production of any property, including the 16
processing resulting in a change in the conditions of the property and any 17
activity related to the processing, assembling, or production of property, 18
together with the storage, warehousing, distribution, and related office 19
facilities; or 20
(b) Production of vital medications, personal protective equipment, or equipment 21
necessary to produce personal protective equipment; 22
(36) (a) "Nonretail service or technology" means any activity where service or 23
technology is provided predominantly outside the Commonwealth and 24
designed to serve a multistate, national, or international market. 25
(b) "Nonretail service or technology" includes but is not limited to call centers, 26
centralized administrative or processing centers, telephone or Internet sales 27
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order or processing centers, distribution or fulfillment centers, data processing 1
centers, research and development facilities, and other similar activities; 2
(37) "Owned project" means an economic development project owned in fee simple by 3
the approved company or an affiliate, or possessed by the approved company or an 4
affiliate pursuant to a capital lease; 5
(38) "Personal protective equipment" means protective clothing, helmets, gloves, face 6
shields, goggles, face masks, respirators, and other equipment designed to protect 7
the user from injury or the spread of infection or illness; 8
(39) "Preliminary approval" means the a ction taken by the authority preliminarily 9
approving an eligible company for incentives under this subchapter; 10
(40) "Renewable energy production" means a Kentucky operation that utilizes wind 11
power, biomass resources, landfill methane gas, hydropower, sola r power, or other 12
similar renewable resources to generate electricity for sale to unrelated entities; 13
(41) "Rent" means the actual annual rent or fee paid by an approved company under a 14
lease agreement; 15
(42) "Start-up costs" means nonrecurring costs incurr ed to furnish and equip a facility 16
for an economic development project, including costs incurred for: 17
(a) Computers, furnishings, office equipment, manufacturing equipment, and 18
fixtures; 19
(b) The relocation of out-of-state equipment; and 20
(c) Cost of fixed telecommunications equipment; 21
as certified to the authority in accordance with KRS 154.32-030; 22
(43) "Synthetic natural gas" means the same thing as in KRS 152.715; 23
(44) "Tax incentive agreement" means the agreement entered into pursuant to KRS 24
154.32-040 between the authority and an approved company; 25
(45) "Term" means the period of time for which a tax incentive agreement may be in 26
effect, which shall not exceed fifteen ( 15) years for an economic development 27
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project located in an enhanced incentive county, or ten (10) years for an economic 1
development project not located in any other county; 2
(46) "Vital medications" means any drug or biologic used to prevent or treat a ser ious 3
life-threatening disease or medical condition for which there is no other available 4
source with sufficient supply of that drug or biologic or alternative drug or biologic; 5
(47) "Wage" means the per hour earnings of a full-time employee, including wages, tips, 6
overtime, bonuses, and commissions, as reflected on the employee's federal form 7
W-2 wage and tax statement, but excludes employee benefits; and 8
(48) "Wage target" means the average total hourly compensation amount, including the 9
minimum wage and e mployee benefits, that the approved company commits to 10
meet for all new full -time jobs created and maintained as a result of the economic 11
development project, which shall not be less than: 12
(a) One hundred twenty -five percent (125%) of the federal minimum w age in 13
enhanced incentive counties; or 14
(b) One hundred fifty percent (150%) of the federal minimum wage in all other 15
counties. 16
Section 4. KRS 164.2802 is amended to read as follows: 17
(1) The Kentucky Nuclear Energy Develo pment Authority is hereby established and 18
attached to the University of Kentucky Center for Applied Energy Research for 19
administrative purposes. The mission of the Kentucky Nuclear Energy 20
Development Authority shall be to: 21
(a) Serve as the nonregulatory, t rusted state government agency on nuclear 22
energy issues and development in the Commonwealth; and 23
(b) Support and facilitate the development of the nuclear energy ecosystem across 24
the Commonwealth in a collaborative manner that: 25
1. Enhances the Commonwealth's economy; 26
2. Offers energy production and economic development opportunities that 27
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are safe; 1
3. Protects the environment across the Commonwealth; 2
4. Supports community voices, especially in underrepresented or 3
historically impacted areas; 4
5. Increases energy education; and 5
6. Prepares a future workforce. 6
(2) The Kentucky Nuclear Energy Development Authority shall be governed by an 7
advisory board consisting of the following twenty -two (22) voting members and 8
eight (8) nonvoting members: 9
(a) Seven (7) state government members or their designees who shall be voting 10
members: 11
1. The director of the University of Kentucky Center for Applied Energy 12
Research, who shall serve as chair; 13
2. The secretary of the Energy and Environment Cabinet; 14
3. The secretary of the Cabinet for Economic Development; 15
4. The chair of the Public Service Commission; 16
5. The president of the Council on Postsecondary Education; 17
6. The secretary of the Education and Labor Cabinet; and 18
7. The director of the Division of Emergency Management; 19
(b) Fifteen (15) at-large members who shall be voting members: 20
1. A representative from each of the four (4) investor -owned electric 21
utilities operating in the Commonwealth, designated by the president of 22
each investor -owned electric utility, unless two (2) or more of the 23
investor-owned electric utilities are operated under common ownership, 24
in which case only one (1) representative shall be designated for the 25
commonly owned utilities; 26
2. Three (3) representatives of electric cooperatives designated by the chief 27
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operating officer of the Kentucky Association of Electric Cooperatives, 1
as follows: 2
a. One (1) of whom shall represent distribution cooperatives; and 3
b. Two (2) of whom shall represent each of the generation and 4
transmission electric cooperatives operating in the 5
Commonwealth, unless they are operated under common 6
ownership, in which case only one (1) representative shall be 7
designated for the commonly owned generation and transmission 8
electric cooperatives; 9
3. A representative of the Tennessee Valley Authority, designated by its 10
chief nuclear officer; 11
4. A representative of municipal utilities, designated by the executive 12
director of the Kentucky League of Cities; 13
5. A representative of nuclear sit e remediation services, designated by the 14
director of business services for the Four Rivers Nuclear Partnership or 15
by another organization that provides nuclear site remediation services; 16
6. A representative for environmental interests, designated by the 17
executive director of the Kentucky Conservation Committee; 18
7. A representative of manufacturers, designated by the president of the 19
Kentucky Association of Manufacturers; 20
8. A representative for commercial interests, designated by the president of 21
the Kentucky Chamber of Commerce; 22
9. A mayor of a city, designated by the executive director of the Kentucky 23
League of Cities, who lives in an "energy community" as that term is 24
used in the Inflation Reduction Act of 2022, Pub. L. No. 117-169, and as 25
it is defined in the latest guidance by the Internal Revenue Service; and 26
10. A county judge/executive, designated by the executive director of the 27
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Kentucky Association of Counties, who lives in an "energy community" 1
as that term is used in the Inflation Reduction Act o f 2022, Pub. L. No. 2
117-169, and as it is defined in the latest guidance by the Internal 3
Revenue Service; and 4
(c) Eight (8) nonvoting members: 5
1. The president of the Nuclear Energy Institute, or designee; 6
2. A representative from a national nuclear educat ional nonprofit 7
organization, designated by the chair and confirmed by a majority of the 8
voting members; 9
3. A representative from a United States Department of Energy National 10
Laboratory with expertise in nuclear energy policy issues, designated by 11
the chair and confirmed by a majority of the voting members; 12
4. A representative from a nongovernmental nuclear policy advocacy 13
organization, designated by the chair and confirmed by a majority of the 14
voting members; 15
5. Two (2) members of the Senate, who shall se rve as ex officio members, 16
designated by the President of the Senate; and 17
6. Two (2) members of the House of Representatives, who shall serve as 18
ex officio members, designated by the Speaker of the House of 19
Representatives. 20
(3) State government members named in subsection (2)(a) of this section and members 21
of the General Assembly named in subsection (2)(c)5. and 6. of this section shall 22
serve on the advisory board during the terms of their appointed or elected state 23
government positions. After the initial a ppointments, all other members of the 24
advisory board shall serve terms of four (4) years. Members shall be eligible to 25
succeed themselves and shall serve until their successors are appointed. A vacancy 26
occurring during the term of any member shall be fille d in the same manner as the 27
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original appointment. 1
(4) A majority of the voting members of the advisory board shall constitute a quorum 2
for the purposes of conducting business. The advisory board shall meet at least 3
quarterly, or more often at the call of the chair. 4
(5) Members of the advisory board shall not be paid for their service as board 5
members, and they shall not be reimbursed for any expenses relating to their 6
attendance of board meetings. 7
(6) The advisory board shall hire a director of the authorit y who shall possess the skills 8
and experience necessary to lead the authority effectively, promote the safe and 9
responsible development of nuclear energy, publicize and encourage application to 10
the Nuclear Energy Development Grant Program established in KR S 164.2803, and 11
achieve the authority's purposes described in subsection (8)[(7)] of this section. 12
(7) Beginning January 1, 2027, the authority shall provide to its advisory board 13
members at least twenty (20) hours of training each year in any area relating to 14
nuclear energy generation, siting, or policy. 15
(8) The purposes of the authority shall be to: 16
(a) Assist interested communities in understanding advanced nuclear 17
opportunities, including the importance of secure, firm, cost -competitive 18
power for customers and for economic development opportunities, as well as 19
the potential for direct and indirect econom ic benefits associated with the 20
employment and tax revenue generated from nuclear energy projects; 21
(b) Provide information to the public on the history of nuclear energy 22
technologies in the Commonwealth, the status of existing nuclear energy 23
projects withi n the Commonwealth, and the potential benefits and concerns 24
associated with nuclear energy technologies; 25
(c) Develop the capacity for nuclear energy economic development in the 26
Commonwealth, which shall include providing information to educational 27
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institutions on the types of career opportunities that will be available with the 1
development of nuclear energy, building strong relationships with economic 2
development professionals, promoting existing economic development 3
incentives applicable to nuclear energy development, and seeking out new 4
grants and other financial support for nuclear energy development; 5
(d) Seek greater clarity and certainty with stakeholders on financial support for 6
early nuclear site permitting, the process for obtaining a nuclear power facility 7
certificate of public convenience and necessity, and the recovery of 8
construction work in progress for nuclear energy projects; 9
(e) Work with communities that have previously hosted nuclear -related activities 10
and other communities facing a transiti on away from fossil fuels to empower 11
those communities with the resources and information necessary to engage 12
with regulators, developers, and decisionmakers on new nuclear power 13
facilities, nuclear component manufacturing facilities, and fuel cycle facilities; 14
(f) Strengthen engagement with the federal Nuclear Regulatory Commission by 15
reviewing current safety and security practices implemented at different types 16
of nuclear energy facilities under their purview, promoting the streamlining of 17
permitting efforts, and supporting the siting of interim and permanent nuclear 18
storage facilities via the continued use of consent-based siting; 19
(g) Build the organizational capacity to engage and potentially convene a 20
consortium of stakeholders interested in nuclear ene rgy technologies that 21
would consist of utilities, environmental advocates, electric cooperatives, and 22
major industrial companies in order to share best practices, including how to 23
share risk associated with developing and constructing new nuclear power 24
plants within the Commonwealth; 25
(h) Engage with the United States Department of Energy National Laboratories, 26
academic institutions, and private companies on efforts to develop deployable 27
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technologies to reprocess or recycle spent nuclear fuel; 1
(i) Maintain a wareness of potential events that could initiate or accelerate the 2
development of new nuclear energy technologies within the Commonwealth 3
to allow the public to benefit from these projects;[ and] 4
(j) Through the nuclear energy development grant administrat ion subcommittee, 5
review and evaluate grant applications and make grant awards in accordance 6
with KRS 164.2803; and 7
(k) Through the Nuclear Reactor Site Readiness Pilot Program, review and 8
evaluate grant applications and make recommendations to the General 9
Assembly for funding eligible projects. 10
(9)[(8)] The authority, with the approval of the advisory board, shall: 11
(a) Propose and adopt bylaws for the management and operation of the authority, 12
including for the Nuclear Energy Development Grant Program esta blished in 13
KRS 164.2803; 14
(b) Develop and adopt a strategic plan for carrying out the purposes of the 15
authority described in subsection (8)[(7)] of this section; 16
(c) Create and update at least once every two (2) years a nuclear energy economic 17
impact analysis for the Commonwealth; 18
(d) Employ necessary staff to carry out the functions of the authority , including, 19
subject to available funding, third -party consultants with the subject matter 20
expertise to assist as needed with the studies, reviews, examinations, and 21
recommendations for which the authority is responsible; and 22
(e) By December 1, 2025, and each December 1 thereafter, submit a report to the 23
Governor and the Legislative Research Commission for referral to the Interim 24
Joint Committees on Natural Resour ces and Energy, Appropriations and 25
Revenue, and Economic Development and Workforce Investment providing: 26
1. A summary of the authority's activities and achievements since its last 27
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report; 1
2. The evaluations and scores of all nuclear energy development gran t 2
applications received and all grant awards made pursuant to KRS 3
164.2803 since its last report; 4
3. The evaluations, scores, and funding recommendations for applicants 5
to the Nuclear Reactor Site Readiness Pilot Program established in 6
Section 1 of this Act; and 7
4.[3.] Recommendations for the support and expansion of the nuclear energy 8
ecosystem in the Commonwealth. 9
Section 5. KRS 164.2803 is amended to read as follows: 10
(1) The Kentucky Nuclear Energy Development Authori ty established in KRS 11
164.2802 shall create and implement the Nuclear Energy Development Grant 12
Program for the advancement and location of nuclear fission and fusion energy-13
related projects to support the entire nuclear energy ecosystem in the 14
Commonwealth, including utility and private sector economic development 15
activities. The nuclear energy ecosystem includes but is not limited to: 16
(a) The nuclear fuel cycle, which includes fuel conversion, enrichment, and 17
fabrication, as well as potential future spent fuel recycling and reprocessing; 18
(b) Nuclear fission or fusion reactor design and component manufacturing; 19
(c) Component supply chain manufacturing and distribution; 20
(d) Nuclear fission or fusion facility siting and development; 21
(e) Radioisotope production; 22
(f) Facility operation and maintenance; 23
(g) Decommissioning waste storage, transport, and management; and 24
(h) End uses of nuclear energy and co-products. 25
(2) The membership of the Kentucky Nuc lear Energy Development Authority shall 26
select five (5) of its voting members to serve on the nuclear energy development 27
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grant administration subcommittee. A majority of the members of the grant 1
administration subcommittee shall constitute a quorum for the purposes of doing 2
business. The subcommittee shall: 3
(a) Create grant applications; 4
(b) Establish grant applicant eligibility requirements; 5
(c) Establish objective scoring criteria to evaluate grant applications, including 6
but not limited to: 7
1. The likeli hood that the proposed project funded by the grant will 8
precipitate further investment in the nuclear energy ecosystem; 9
2. The economic impact of the grant funding on the community and region 10
where the proposed project will be located; 11
3. The readiness of the community where the proposed project will be 12
located to host nuclear -related investments, including whether the 13
community has been awarded a nuclear -ready community designation 14
under KRS 164.2804; and 15
4. The amount of additional investment that would b e made in the 16
proposed project by the grant applicant and other sources; and 17
(d) Make determinations on grant eligibility and funding and make grant awards 18
based on those determinations, not to exceed two million dollars ($2,000,000) 19
per individual grant. 20