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Lawmakers discuss energy bill

August 22, 2007|Bob Flynn

Kentucky lawmakers made their way back to Frankfort Monday for another special session called by Gov. Ernie Fletcher for debate on an energy bill aimed at luring a coal gasification plant to Kentucky.

But unlike the last one in early July when House lawmakers refused to participate calling the session a political ploy by Fletcher to boost his re-election campaign, both sides were in attendance.

The controversy surrounded a proposed $300 million tax incentive package for Peabody Energy to build a coal gasification plant in Henderson in western Kentucky.

The House had presented one version of an energy plan during the last regular session while the Senate introduced their own energy plan during the shortened session in July.

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After almost a month of political wrangling, both sides met with officials from Peabody Energy in late July and came up with legislation everyone could agree on, setting up this week's special session, which would deal with that lone item.

In that July meeting, they got a guarantee from Peabody officials that if the incentive package was passed, the plant would be built in Kentucky. Indiana and Illinois had also been considered as possible locations.

The House passed the bill on Wednesday afternoon. Fletcher was pleased with the news the House passed the bill.

"I am glad the House is working with us to make Kentucky a leader in energy," Fletcher said.

The Senate will vote on the legislation on Friday.

Sen. Tom Buford, R-Nicholasville, said he would vote for the bill and didn't see anything stopping it from passing.

He said the proposed plant would be good for the area it would be built in because it would bring in money and jobs, but the people in the rest of the state wouldn't see much benefit from it.

"It's good for the part of the state it goes into but as far as southern, central and northern Kentucky, it doesn't have much for us except using our tax money," Buford said.

While Buford and most others think the bill will pass, some legislators had some reservations about the bill, everyone agreed it was better than either previous version.

Rep. Bob Damron, D-Nicholasville, said Tuesday, "I'm not real high on it yet, there are a few things I'm concerned with."

Rep. Carl Rollins D-Midway, said he would like to see more regulations in the bill to control pollution at the energy plants, but didn't expect any amendments to be introduced.

Several groups have criticized the bill saying it could lead to more destruction of mountain tops by coal companies if it passes. One group, Kentuckians for the Commonwealth has been against the proposal from the beginning and purchased newspaper ads in recent days opposing the legislation.

The bill would provide financial incentives for all qualifying companies that build fuel facilities in Kentucky. Actual incentives would be determined by the Kentucky Economic Development Finance Authority.

Under the bill, alternative fuel plants would receive breaks on sales, income and coal severance taxes.

Even if the bill passes, there is no guarantee the plant will be built in Kentucky.

"I don't think it will ever be built here because there is just so much more money in Illinois and Indiana and they can just outbid us," Buford said.

The House voted on the bill after the Journal went to print.

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