By Lora Smith

August 13, 2007 - Gov. Ernie Fletcher postponed a special legislative session expected to begin today after lawmakers from the House and Senate failed to reach agreement on an Energy Bill that would provide subsidies for coal conversion plants. At the center of the legislation is a deal worth $315 million dollars for Peabody Energy. This is one of the largest incentives packages ever offered in Kentucky to a single company.

Peabody Energy of St. Louis released a statement in July, saying that lawmakers must pass legislation this summer if Kentucky wants to compete for a $3 billion coal conversion plant to be located in Western Kentucky.
 
Proponents of this deal say it will bring 300 permanent jobs to Western Kentucky and provide incentives for coal conversion plants to open throughout the state.
 
Others are alarmed by the amount of money being offered to corporations like Peabody, the world’s largest coal company. They are also concerned by an Energy Bill dependent on fossil fuels without investing in renewable energy sources.

Judy Owens, of the Mountain Association for Community and Economic Development , is manger of the High Road Initiative, a program that seeks to create sustainable economic development in Eastern Kentucky. Owens is concerned about what this deal would mean for Kentucky’s economic and energy future, “ I think that what the taxpayer has to think about is what they’re saying for sure are 300 jobs at the plant at a cost then of over one millon dollars a piece. Peabody also wants this spread out over 25 years and that’s unprecedented.”

New to the proposed legislation is the use of Kentucky coal severance tax money as an incentive. It has been reported that Peabody, and other coal companies opening conversion plants, would have up to 80% of their severance tax payments on Kentucky-mined coal returned. Owens believes this would be harmful to coal producing counties, “The idea that there would be any kind of rollback or offset of the severance taxes, it provokes a very serious thought of what direction we’re going in.”

Members from the House and Senate will be meeting today beginning at 4 p.m. to discuss when to reconvene the special session. According to Senate President David Williams, lawmakers could begin as early as Tuesday.

To learn more about this issue, tune in to Tuesday night’s edition of Mountain Talk beginning at 7pm here on WMMT. Letcher County members of Kentuckians For The Commonwealth will be on the show to discuss the proposed legislation’s impact on Eastern Kentucky counties and will be taking your calls.

Links:
Mountain Association for Community and Economic Development
High Road Initiative
Kentuckians For The Commonwealth

 

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