EEA Database on Distributed Generation

WHAT'S NEW:

No recent state activity has been identified.

Units with a potential to emit less than 10 tons per year of a regulated air pollutant are exempt from registration and permitting requirements. State registration is required, but no permit, if a source’s potential to emit is greater than 10 tpy, but less than 25 tpy. In addition, every emitting source in the state is subject to emissions fees of approximately $30 per ton for each criteria pollutant emitted.

MINOR SOURCE PERMITTING

The state recently passed a new law that requires any proposed generating plants greater than 10 MW to go through the public review board which is part of the Public Service Commission. Electric generating units must submit an application to the public review board which has 120 days to make a decision. There are significant fees included in this process and according to permitting officials companies are getting upset over the high cost of applying for a permit (exact prices are not available at this time). Approval by the review board gives a company the right to apply for a permit. Once approved an applicant must then go to the permitting department. The permitting department has an opacity limit of 20%, may require modeling for any SO2-emitting units and is likely to require controls on a case by case basis. In addition units must pay an annual permit fee of approximately $30 per ton of actual emissions for each criteria pollutant. NOTE that sources smaller than 10 MW that are not exempted must meet the same requirements but can skip the public review board.

The period would last for 30 days. Not including the public review board or the public comment period the permitting process is likely to take approximately 120 days. The public review board has 120 days.

Permit application forms are available here; contact information is available here.

MAJOR NSR/PSD PERMITTING

A potential to emit 250 tons of any criteria pollutant triggers PSD. In the moderate ozone nonattainment area 100 tons triggers NSR.

TREATMENT OF EMERGENCY ENGINES

The state has an exemption for units that are less than approximately 1 MMBtu/hr in size and that are only operating during blackouts and maintenance. There is no hourly limit. State registration is required under this exemption. Larger units are permitted through the normal process outlined above.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

After intense debate in the 2002 General Assembly, Governor Patton signed into law Senate Bill 257, which established criteria for the siting of electric power generating facilities. Senate Bill 257 set specific setback requirements from nursing homes, residential neighborhoods and churches. In addition, Senate Bill 257 requires a Siting Board review of proposed merchant projects, a Public Service Commission review of proposed merchant projects, a Public Service Commission review of proposed regulated utility projects and an assessment of the cumulative environmental impact of any new generation upon the Commonwealth's air, water and land.

More information can be found at the Kentucky Board on Electric Generation Siting

"Merchant electric generating facility": means except for a qualifying cogeneration facility as defined in subsection (7) of this section, an electricity generating plant, together with associated facilities, that:

a) Is capable of operating at a capacity of ten megawatts (10MW) or more; and
b) Sells the electricity it produces in the wholesale market, at rates and charges not regulated by the Public Service Commission.

"Qualifying cogeneration facility": means a facility as defined in 16 U.S.C sec. 796(18)(b), which does not exceed a capacity of one hundred fifty megawatts (150 MW), that is located on site at a manufacturer's plant and that uses steam from the cogeneration facility in its manufacturing process.

Section 10 Except for a person that commenced construction of a facility prior to April 15, 2002, no person shall commence to construct a facility to be used for the generation of electricity unless the person:

a) Submits a cumulative environmental assessment to the cabinet with the permit application; and
b) Remits a fee set pursuant to KRS 224.10-100(20) by the cabinet to defray the cost of processing the cumulative environmental assessment.

BUILDING, ZONING AND FIRE CODES:

Building Codes: Kentucky has adopted the 2007 Kentucky Building Code (KBC), a statewide mandatory code which is based on the 2006 IBC with amendments. Local jurisdictions may not alter the code.

Kentucky Department of Housing, Buildings, and Construction

Energy Codes: The 2007 KBC includes adoption of the 2003 IECC.

Fire Codes: The 2007 KBC includes piecewise, amended adoption of the 2006 IFC.

Kentucky Division of Fire Protection

Zoning: Zoning and planning happens at the local level. Check with each jurisdiction regarding their zoning codes.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project

INTERCONNECTION REQUIREMENTS:

Kentucky has general statewide interconnection standards that are outlined along with their net metering requirements in KRS § 278.465 - 278.468. All investor-owned utilities and rural electric cooperatives are required to offer interconnection and net metering only to customers with solar-electric photovoltaic systems 15 kW or less. Two utilities in the state, Kentucky Utilities and Louisville Gas and Electric, offer interconnection and net metering to customers with wind and hydroelectric systems and possibly allow other renewable systems to connect to the grid.

In April 2008, Kentucky passed SB 83, which requires utilities to offer net metering to customers that generate electricity with photovoltaic, wind, biomass, biogas, or hydroelectric systems up to 30 kW. Generators must meet all applicable NEC, IEEE, and UL safety and power quality standards.

For more information contact the local electric generation and distribution utility or the Kentucky Public Service Commission.

Kentucky Public Service Commission

211 Sower Blvd., P.O. Box 615
Frankfort, KY 40602

John Shupp
Phone: (502) 564-3940
Fax: (502) 564-1582
E-Mail:john.shupp@ky.gov

EXIT FEES:

Kentucky does not have a statewide exit fee policy.

UTILITY STANDBY RATES:

Kentucky does not have a statewide policy on standby rates. Relevant provisions for Kentucky utilities are summarized below.

Kentucky Utilities Co - no specific standby rate so customers with on-site generation would be charged under the regular rate for their facility size. Most regular rates have a higher demand component when compared to energy charges, the billing demand is based on the maximum 15 minute demand with no ratchet. Rate available at: http://www.eon-us.com/rsc/ku/odpelecrates.pdf

Louisville Gas & Electric Co - Rider SS - standby rate is primarily demand based with a very small energy component. Electric service used each month will be charged in accordance with the provisions of the applicable rate schedule; provided, however, that the bill shall in no case be less than an amount calculated at a rate of $6.25 per kilowatt applied to the Contract demand. A Capacity Reservation Charge will apply, which for secondary distribution is $1.43 per kW per month, and for primary distribution is $1.06 per kW per month. Rate available at: http://www.eon-us.com/rsc/lge/lgereselectric.pdf

Kentucky

WHAT'S NEW:

AIR EMISSIONS REGULATIONS:

BUILDING, ZONING AND FIRE CODES:

EXIT FEES: