Kentucky Natural Gas Laws and Incentives
State Incentives
Alternative Fuel Research, Development, and Promotion
Established legislatively as the Kentucky Alternative Fuel and Renewable Energy Fund Program, Kentucky New Energy Ventures (KNEV) is a state program that provides project funding to companies for research, development, and commercialization of alternative fuels and renewable energy. Specifically, KNEV is designed to: 1) grow Kentucky-based alternative fuel and renewable energy companies to promote statewide, innovation-driven economic growth; 2) stimulate private investment in Kentucky-based alternative fuel and renewable energy enterprises; 3) expand the alternative fuel and renewable energy knowledge base, talent force, and industry in Kentucky; 4) develop an alternative fuel and renewable energy resource network to build the technical and business capacity of entrepreneurs through informal and formal strategic support; and 5) build statewide awareness of the economic development opportunities offered by Kentucky’s alternative fuel and renewable energy industry.
Alternative Fuel and Vehicle Promotion
The Kentucky Division of Renewable Energy and Energy Efficiency (Division) encourages the responsible use of transportation fuels by supporting academic research, public education, and collaborative partnerships involving alternative fuels and alternative fuel vehicles (AFVs). The Division has implemented a number of projects to promote the use of AFVs and establish alternative fuel infrastructure in Kentucky.
State Laws and Regulations
Vehicle Acquisition Priorities and Alternative Fuel Use Requirement
The Finance and Administration Cabinet (Cabinet) is required to develop a strategy to replace at least 50% of state motor fleet light-duty vehicles with energy-efficient vehicles including hybrid electric vehicles, fuel cell vehicles, and alternative fuel vehicles. The Cabinet must also develop a strategy to increase the use of ethanol, biodiesel, and other alternative fuels in state motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 44.045)
State Energy Plan Alternative Fuel Requirements
The Governor's Office of Energy Policy oversees the development and implementation of Kentucky’s comprehensive energy strategy. Specifically, the Governor’s Office of Energy Policy is directed to develop and implement a strategy for the production of alternative transportation fuels and synthetic natural gas from fossil energy resources and biomass resources, including biodiesel and ethanol. The strategy must include the following: establishment or expansion of state government incentives for developing, constructing, or operating alternative transportation fuels and synthetic natural gas production facilities; support of alternative energy through awareness and technology development; and administration of grant programs to support energy-related research. (Reference Kentucky Revised Statutes 152.720)
Natural Gas Deregulation
The rates, terms, and conditions of service for the sale of natural gas to a compressed natural gas fueling station, retailer, or to any end-user for use as a motor vehicle fuel are exempt from regulation by the Kentucky Public Service Commission. (Reference Kentucky Revised Statutes 278.508)
Utilities/Private Incentives
Natural Gas Infrastructure Technical Assistance
Atmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and will assist with vendor selection on a case-by-case basis.
