SENATE WEEK IN REVIEW

March 16, 2007

During the final days of the 2007 Legislative Session, I've had the opportunity to work in a bipartisan manner on what has developed into comprehensive legislation that addresses Kentucky's unique ability to lead the Nation in the development of renewable fuels and clean coal technology.

House Bill 5, which we passed this week, covers a wide range of ideas designed to make our commonwealth and our nation more self-sufficient. At the same time, we want Kentucky to return to its place at the heart of the American energy industry. New technology allows gasoline to be made from coal, rather than oil. Our abundant agricultural output also makes us a great state to produce ethanol and biodiesel, two energy sources based on plants rather than fossil fuels.

To that end, my proposal would create a $1 per gallon tax credit for producers of ethanol and biodiesel, to help jump-start those industries here. Up to $10 million for each fuel type annually could be credited to producers, with the tax credit prorated if it's successful and more than 10 million gallons are produced.

The bill also creates a financing plan for large-scale energy facilities that produce alternative or renewable energy sources. One reason many businesses are hesitant to invest in these power plants is the start-up cost. Because these facilities create more than 150 high-paying jobs each, not including the construction jobs involved before they even open for business, we want to do everything in our power to lure them here. By working together, the state can realize economic gains, while the energy facilities help recoup some of their costs and make our nation more secure.

HB 5 also contains steps to make state buildings more energy-efficient and purchase state vehicles that use ethanol, biodiesel, alternative fuels, and hybrid technology. Our goal is to lead by example, using less foreign oil to fuel our fleet.

Because the hundreds of jobs created by this program will require hundreds of Kentuckians who have the math, science, technology and engineering skills to fill them, we also added the provisions of Senate Bills 1 and 2, which are aimed at pushing our children into more rigorous math and science classes, as well as luring high-quality math and science teachers into the classroom. Another part of the bill formally creates the Academy of Math and Science in Kentucky, a two-year program at Western Kentucky University that allows top-notch high school juniors and seniors from across the state take college level classes.

The House was not able to act on the Senate changes to this legislation before we adjourned, but we hope it will win approval when we return at the end of the month.

The Senate was able to add needed money for the UPS expansion. I proudly helped guide $6 million appropriation, through the Senate, for the relocation and expansion of Crittenden Drive. The appropriation was needed for the construction of a taxiway to accommodate aircraft to be utilized in the UPS Worldport II expansion.

UPS is the largest employer in Louisville and Kentucky. The expansion will increase the capacity of packages handled by 60 percent. Construction is set to be completed by 2010.

Just as important as economic development is human development. I was proud to file and amendment for emergency funding for the Commission on Human Rights to House Bill 262. The Commission on Human Rights is a very important agency that makes sure that Kentucky's citizens civil rights are protected.

We also took steps to revitalize communities across Kentucky, through a program called tax increment financing. This plan, like the energy facility incentive plan, would allow community development projects across the state to make some of their investment back. TIF financing recognizes that many projects, because they spur economic activity in the surrounding area, boost tax receipts as well. Under HB 549, these projects would get a rebate from the state based on the extra revenue that results from their location. While much of the media focus has been on huge projects like Museum Plaza in Louisville and Ovation on the Northern Kentucky riverfront, this could also result in economic development here at home.

The usual last-day rush also came with a number of emergency spending measures, including funds to repair the Wolf Creek Dam holding back Lake Cumberland, where structural damage was recently discovered; money for the Kentucky Horse Park, which needs new facilities and upgrades as our state prepares to host the 2010 World Equestrian Games; and relocation of one runway at Blue Grass Airport in Lexington, in an effort to make sure another tragedy like Comair Flight 5191 never happens there again.

We'll return to the Capitol on March 26, for two days of final decision-making on a wide range of issues, including any gubernatorial vetoes. As always, call our Legislative Message Line at 1-800-372-7181 to let us know how you feel, or follow our work online at http://www.lrc.ky.gov.

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