Kentucky H.B. 767 introduced earlier this week is a bill that provides incentives for carbon capture and sequestration technology. The bill would award incentives for one pilot project in Kentucky that meets the requirements of the bill. To be considered a pilot project eligible for incentives, the following criteria would have to be met:
- Involve the construction of a new integrated gasification combined cycle (IGCC) plant with carbon capture and storage, or the modification of an existing 300 MW plant with carbon capture and storage technology;
- be proposed by a partnership of investor-owned utilities in Kentucky;
- have a minimum capital investment of $100,000,000; and
- have received funding from the U.S. Department of Energy or have been notified that certain funding or incentives would be given by the DOE based on the FutureGen
- initiative, or any future federal initiative that would replace the FutureGen initiative.
The incentive package in this bill is based on the one set up by KRS 154.27-010 to 154.27-090, however there are three distinct differences: (1) a gasification facility would be used primarily for producing electricity rather than producing electricity as a byproduct under the previously mentioned statute; (2) provides for modification of an existing plant to be eligible for the incentives; and (3) plants under this law are required to have CCS technology rather than just be "CCS ready."