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AN ACT relating to air quality programs and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 224.20-050 is amended to read as follows: 3
(1) As used in this section, "emergency stationary internal combustion engine" 4
means any engine that: 5
(a) Has no time limits on use in emergency situations; 6
(b) Is operated for a maximum of one hundred (100) hours per calendar year 7
for all nonemergency situations, including maintenance checks and 8
readiness testing; and 9
(c) Is operated for a maximum of fifty (50) hours per calendar year for 10
nonemergency situations that do not constitute maintenance checks or 11
readiness testing. Hours of operation under this paragraph are counted as 12
part of the one hundred (100) hours allowed under paragraph (b) of this 13
subsection. 14
(2) The cabinet, or an air pollution control district created pursuant to KRS Chapters 77 15
and 224, may promulgate administrative regulations adopting fees for the cost of 16
administering the air quality program authorized by this chapter, as mandated under 17
the Clean Air Act Amendments of 1990, Pub. L. No.[ (Public Law] 101-549, as 18
amended[)]. Any person who fails to pay a fee as required by the administrative 19
regulations adopted pursuant to this section shall pay an additional fee equal to fifty 20
percent (50%) of the fee amount, plus interest on the fee amount computed in 21
accordance with 26 U.S.C. sec.[Section] 6621(a)(2)[ of the Internal Revenue Code 22
of 1986 (Public Law 99-499], as amended, relating to computation of interest on 23
underpayment of federal taxes[)]. 24
(3)[(2)] The cabinet may use the fee structure implemented by administrative 25
regulations to generate funds to finance the cabinet's air quality program. The 26
cabinet's fee structure shall not generate moneys in excess of the amount authorized 27 UNOFFICIAL COPY 25 RS HB 346/EN
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in the enacted budget bill. 1
(4)[(3)] Except as provided in subsection (5) of this section, the emissions fees shall 2
be assessed on each permitted source of regulated air pollutants emitted in the 3
preceding year, and the cabinet shall not create an upper limit on the amount of 4
actual emissions of a single regulated air pollutant from a permitted source 5
emitted in the preceding year that may be assessed emissions fees. 6
(5) An emergency stationary internal combustion engine unit shall not subject a 7
source that has been issued a state origin or federally enforceable non-major 8
source permit to the assessment or payment of emissions fees on any emissions 9
from that source. 10
(6)[(4)] Moneys generated by a fee structure shall be deposited into a separate and 11
distinct interest-bearing account and invested in accordance with administrative 12
regulations promulgated by the State Investment Commission pursuant to KRS 13
42.525. Moneys not expended at the end of a fiscal year shall be carried forward to 14
the next fiscal year. Any available balance shall be credited against the emissions 15
fee required in the succeeding fiscal year, and shall be credited to each source 16
according to the proportion of the total of all emission fees which were paid by that 17
source in a timely manner. 18
Section 2. Subsection (5) of Section 1 of this Act applies retroactively to 19
emissions fees assessed by the cabinet for calendar year 2023 emissions. Within 90 days 20
of the effective date of this Act, the cabinet shall refund to a permitted source any 21
emissions fees it paid for calendar year 2023 emissions in contravention of the 22
requirements of subsection (5) of Section 1 of this Act. The cabinet shall not assess or 23
reassess any new fees for calendar year 2023 emissions. 24
Section 3. Whereas it is necessary for the health and welfare of the citizens of 25
the Commonwealth that an air quality program established by an air pollution control 26
board or the Energy and Environment Cabinet be properly maintained and funded, an 27 UNOFFICIAL COPY 25 RS HB 346/EN
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emergency is declared to exist, and this Act takes effect upon its passage and approval by 1
the Governor or upon its otherwise becoming a law. 2