| State Spotlight: Kentucky
On April 26, 2006 Governor Ernie Fletcher signed into law House Bill 299, "Kentucky Energy Security National Leadership Act." This bill aims to "ensure that Kentucky will lead the states in securing the energy independence of the United States and will consequently benefit from economic growth and stabilization of the Commonwealth's coal industry and agriculture, the Kentucky Office of Energy Policy (KOEP) shall develop and implement a strategy for production of transportation fuels and synthetic natural gas from fossil energy resources and biomass resources." The State's Office of Energy Policy (OEP) is already active in determining how it will implement the bill. This bill is a welcome addition to policies that already support the state's growing biofuels industry; such as an income tax credit that is available for biodiesel producers and blenders at a rate of $1.00 per gallon.
Currently, biodiesel and ethanol are being produced and sold in Kentucky. The state has two active ethanol production facilities with two planned to start up in late 2007 and in winter of 2008. Kentucky also has one active biodiesel facility, with two planned to go online this fall.
Table 1: Active and Proposed Biomass Production Facilities
The number of stations that sell E-85 (a blend of 85 percent ethanol and 15 percent gasoline) and biodiesel are also increasing. Currently, there are 5 stations that sell E-85 and 5 that sell biodiesel. Below is a map that shows the locations of these stations.
Figure 1: Kentucky Ethanol and Biodiesel Stations
Legend
Ethanol Station
Biodiesel Station
A few organizations in Kentucky support Kentucky's booming biomass industry. First, the Kentucky Corn Growers Association (KyCGA) is a strong supporter of the ethanol industry since corn is the crop that is used mostly to produce ethanol. The KyCGA is involved in many projects such as helping develop ethanol infrastructure in the state, investing in ethanol production facilities, encouraging fleet controllers to purchase flex fuel vehicles (FFV) which are able to run on E-85 and educating growers and students of all ages on the benefits of ethanol. Second, the Kentucky Clean Fuels Coalition, established in 1993 with the goal of promoting air quality and economic development across Kentucky, actively promotes the increased use of E-10, E-85 and biodiesel. Finally, the Kentucky Soybean Board and Association promote research efforts and education to increase the use of soy biodiesel.
Through its policies, Kentucky is succeeding in becoming a leading example of how a state can contribute to making the United States more energy independent and environmentally friendly by supporting biomass projects. |