United States
Environmental Protection
Agency
vvEPA
State Incentives for Achieving Clean and Renewable
Energy Development on Contaminated Lands
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and
contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This
document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Funding (grants, loans, bonds, etc.)
Kentucky New Energy Ventures (KNEV) Fund
www.startupkentucky.com/7255
Provides grants and investments to companies that develop and
commercialize products which produce energy from renewable or
sustainable sources. Grants can be awarded up to $30,000. Any
funding request above $30,000 will be via an investment, which must
be matched 1:1 in cash.
Tax Incentives (abatements, deductions, credits, etc.)
Tax Credits for Renewable Energy Facilities
www.lrc.ky.gov/record/07S2/HB1/bill.doc
Provides a tax credit of up to 100% of Kentucky income tax or limited
liability tax for projects that construct renewable energy facilities that
generate at least 50 kilowatts (kW) of electricity from solar power or at
least one megawatt (MW) from wind power, biomass resources, landfill
gas, hydropower, or similar renewable resources. Provides sales tax
incentive of up to 100% of the Kentucky sales and use tax paid on
materials, machinery, and equipment used to construct, retrofit, or
upgrade an eligible project. Companies can require that employees
whose jobs were created as a result of the associated project pay a
wage assessment of up to 4% of their gross wages. Employees will be
allowed a Kentucky income tax credit equal to the assessment withheld
from their wages. Minimum investment in any renewable energy facility
must be $1 million in capital expenditure and non-capital costs, such as
labor. Maximum recovery for a single project from all incentives,
including the income and liability entity tax credit, sales tax refund and
wage assessment, cannot exceed 50% of the capital investment.
Net Metering
Tennessee Valley Authority (TVA) Green Power Switch
Generation Partners Program
www.gpsgenpartners.com
Offers a dual-metering option to residential and commercial consumers
in the TVA service area. Under the commercial contract, TVA will
purchase generation output at $.20/kWh, which will be sold as "green
power" to other consumers. Qualifying sources for commercial
consumers are restricted to solar (PV) systems of 50 kW or less,
though larger systems are negotiable.
Kentucky Public Service Commission—Net Metering
www.lrc.ky.gov/KRS/278-00/CHAPTER.HTM
Electric utilities are required to offer net metering to customers with
solar-electric (PV) systems of 15 kW or less. Utilities are not obligated
to offer net metering once the cumulative generating capacity of net-
metered systems reaches 0.1 % of the utility's single-hour peak load
during the previous year.
Quick Facts
Public Benefit Fund (PBF)
Renewable Portfolio Standard
Net Metering
Interconnection Standards
Yes D No 0
Yes D No 0
Yes 0 No D
Yes D No 0
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 3.4% Nuclear 0.0%
Natural Gas-Fired 1.2% Hydroelectric 2.6%
Coal-Fired 92.3% Other Renewables 0.5%
Points of Contact
KNEV Fund
Kentucky Science and Technology Corporation
www.startupkentucky.com/7255
Sean O'Leary, soleary@kstc.com, (859) 967-9974
Tax Credits for Renewable Energy Facilities
Kentucky Cabinet for Economic Development
www. thinkkentucky. com
Steve Jones, rstephen.jones@ky.gov, (502) 564-4554
TVA Green Power Switch Generation Partners Program, Kentucky
Public Service Commission - Net Metering
Kentucky Public Service Commission, psc.ky.gov
John Shupp, john.shupp@ky.gov, (502) 564-3940
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
Kentucky Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Tax Incentives (abatements, credits, deductions, etc.)
Property Tax Reduction
www.dca.ky.gov/brownfields/FinanciahResourcesMm
Reduces state and local property tax rates on remediated brownfield
properties. For three years following cleanup, property will not be
subject to local ad valorem property taxes. State ad valorem property
tax rate will be reduced from 31.5 cents per $100 of assessed value
to 1.5 cents per $100 of assessed value.
Income Tax Credits
www.dca.ky.gov/brownfieids/FinanciahResources.htm
Provides up to $150,000 worth of income tax credits for expenditures
made in order to meet cleanup requirements. Allowable credit for any
taxable year is a maximum of 25% of the credit authorized. Credit may
be carried forward for 10 successive years.
Kentucky Environmental Stewardship Act (KESA) Tax
Credit
www.thinkkentucky.com/kyedc/pdfs/KESA_FACT_SHEET_2005_v11.pdf
Provides companies manufacturing environmental stewardship
products (which could include the installation of renewable energy
facilities) with 100% credit against the tax liability generated by the
project. Incentive is available for recovery over a 10-year period or until
authorized incentive is realized. Companies are limited to a maximum
25% of the authorized incentive in any single tax year. Projects must
have at least $5,000,000 in eligible costs to be eligible.
Technical Assistance and Other Incentives
Targeted Brownfields Assessments (TBA)
www.dca.ky.gov/brownfieids
Provides TBAs to municipalities, quasi-governmental, and nonprofit
agencies free of charge and helps eligible parties develop applications
for federal grants.
Brownfield Program Resources
www.dca.ky.gov/brownfieids
Offers a variety of services to turn brownfields into economic and
community development opportunities. Because the program and
funding is often changing, the Web site will provide the most current
information, including a Brownfields Cleanup and Redevelopment
Toolbox.
Clean Water State Revolving Loan Fund
www.kia.ky.gov/loan/fundf.htm
Provides low-interest loans to public entities addressing brownfields that
have current or potential water quality impact.
Duke Energy Brownfield Redevelopment Initiative
http://psc.ky.gov
Offers a rate reduction of up to 50% for five years to businesses located in
a qualified brownfield redevelopment area served by existing primary lines
in the Duke Energy service area which covers the northern half of the
state.
Limitations on Liability
Voluntary Environmental Remediation Program (VERP)
www.waste.ky.gov/branches/sf/VERPPage.htm
Offers four tracks for parties who volunteer to clean up releases of
hazardous substances on their property. Under the VERP track, parties
are offered a Covenant Not to Sue (CNTS). Volunteers may also
conduct cleanups under other less formal track processes and obtain a
Notice of Completion or a No Further Remediation letter.
Quick Facts
Limitations on Liability Yes 0 No D
Number of State-Tracked Contaminated Properties: 4,279
Includes sites from the state's Brownfields and Superfund Program, including
voluntary cleanups
Number of EPA CERCLIS Sites: 202
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 6
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Kentucky.
Points of Contact
Property Tax Reduction, Income Tax Credits, TBA, VERP
Amanda LeFevre, amanda.lefevre@ky.gov, (502) 564-0323
KESA Tax Credit
Kentucky Cabinet for Economic Development
www. thinkkentucky. com
Steve Jones, rstephen.jones@ky.gov, (502) 564-4554
Brownfield Program Resources
Division of Compliance Assistance, www.dca.ky.gov/brownfields
Herb Petitjean, herb.petitjean@ky.gov, (502) 564-0323
Clean Water State Revolving Loan Fund
Kentucky Infrastructure Authority
Sandy Williams, sandy.williams@ky.gov, (502) 573-0260 x224
Duke Energy Brownfield Redevelopment Initiative
Kentucky Public Service Commission, psc.ky.gov
John Shupp, john.shupp@ky.gov, (502) 564-3940
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Kentucky Incentives for Development of Contaminated Land - Page 2
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