Representative:

Thank you for your continuing service to all Kentuckians.

I hope you find our analysis and suggestions constructive as your Committee continues to perfect this legislation.

More background: http://ncad.net Click: News then ?Power

I will endeavor to also notify other members of the Committee

and look forward to providing testimony Monday.

Respectfully,

john r. schmidt, M.S.

President, NCAD Corporation

859 727-9999

2002 03 22

Recent History of SB-257 of Senator Ernie Harris

Mar 14 Discussed in Senate Committee on Agriculture & Natural Resources

Unanimous approval by Committee of Committee Substitute,

subject to Floor Amendments.

Mar 18 Passed Senate by 36-0.

Mar 20 Assigned to House Committee on Local Government.

Mar 25 2:30pm Capitol Annex Room 113

Special Meeting of Local Government Committee on SB-257

(& unrelated SB-184 on Fireman's Retirement Fund)

Analysis of Current Revision SB-257

General Discussion

More later, augmenting instructions and some comments within the Spot Edits.

Spot Edits

1. Replace "9" with {17} "...of this Act,..."

1.2 "Qualifying cogeneration facility" is excluded.

1.5 Replace "69,000V" with {1,000V}.

1.6 Insert after: "Qualifying cogeneration facility"

{, in which input energy rating does not exceed 100,000,000 BTUs,}

since otherwise not defined with maximum magnitude:

USC-16.796-18

(B)

''qualifying cogeneration facility'' means a cogeneration facility which -

(i)

the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe; and

(ii)

is owned by a person not primarily engaged in the generation or sale of electric power (other than electric power solely from cogeneration facilities or small power production

1.7 {1.7 "Area of Impact" is the area determined by the Board, subject to revision based on available information, within which a citizen may be affected, subject to wind conditions, by the operation of the proposed facility.}

2.1.d. Delete. ?Who would volunteer for 2 years of uncompensated service, traveling all over the state? This person would be vulnerable to bribery.

2.1.e Since there is (at best trivial) state purpose fulfilled by installation of Merchant Facility

but large, local impact, there must be more assured local representation, specifically:

From the civil entities within the Area of Impact, 3 Board members selected as follows:

1. By the Governor

2. By the highest ranking local official(s)

3. From a group comprising those working or living within the Area of Impact, selection arbitrated by highest ranking local official.

2.2 Replace "9" with {17} of this Act."

2.4 Comment: Chairman, with majority (4) Board Members, comprising a quorum based in Frankfort,

does not facilitate Local representation.

3.1 More general (protective):

No person shall commence to construct a { combustion operation exceeding 100,000,000 BTUs}...

3.2 Replacement: More general (protective):

"(2000) feet from any residential neighborhood" { or facility providing services to the public including: residential, assisted care, educational, and the like}.

4.2.L The requirement of a Site Assessment Report (SAR) may be waived / satisfied by the alternative NEPA documentation of compliance. A more specific reference is required!!!!

4.4 second line: Delete "expansion".

5.2 Delete this subsection which invites favoritism and bribery.

Since the Board has final say, implicitly it is clear

the applicant will seek an acceptable basis of the SAR.

6.1.e Delete: "that existed on the date the application was filed"

Zoning control is the only tool available for local control.

It is unreasonable to remove that tool prior to its need

in response to unexpected, aggressive neighbor.

6.1.i Insert following: "capacity to construct and operate the proposed facility"

{and is accepted by local committee which shall have the power of veto in circumstances of community rejection, based petitions filed to the Board}

6.3 Insert new subsection:

(c) the acquirer has been approved by local committee approved by the Board.

7.1 midparagraph 2 replacements:

"...interested persons that reside within {the Area of Impact} to consider...".

"or county fiscal court of a jurisdiction {some part of which is within the Area of Impact.}

8.2.b.3 Insert / replace following:

"Existing property lines and the names of persons who own the property"

{within a 200' buffer of the proposed horizontal alignment of the proposed transmission line}

8.2.f Insert:

"...obtain public involvement {and notify property owners within said buffer} shall include..."

10.1.b Replace "processing":

"defray the cost of {producing} the cumulative assessment report."

10.1.b Once again, this reference must be more specific!

10.2.e Insert:

{ (e) For oxygen withdrawal;

1. Identification of the of dry weight of anticipated oxygen withdrawal as a part of the proposed combustion process,

2. Statement of the minimum level of oxygen which will be maintained at the property boundary of the proposed facility.

}

15.6 Replace "1972" with {2000}.

15.7 Insert:

"...to another electric supplier {or wholesaler, or broker} for resale"

15.14 Replace twice: "year" with {10-year period}.