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152.710 Legislative findings and determinations.
The General Assembly finds and determines that:
(1) The United States currently imports almost sixty percent (60%) of its petroleum
needs, and nearly half of these imports come from highly unstable regions and
countries. It is projected that this percentage will grow to over seventy percent
(70%) by 2025 unless the United States changes its policy on producing liquid
fuels;
(2) Events in the Middle East, Africa, and South America, coupled with China’s
efforts to secure world oil reserves and production facilities, demonstrate that
increasing reliance on foreign sources of petroleum threatens the homeland security
of the United States. America’s military is increasingly looking at the potential
of alternate liquid fuels produced from fossil energy resources or agricultural
materials as a reliable, secure source of fuel;
(3) Petroleum imports are the single largest cause of the nation’s negative balance
of trade with the rest of the world and are a major cause of inflation and economic
slowdown;
(4) Experts project that world oil prices will remain very high because production is at
or near its peak while world demand for oil is increasing rapidly. This increase in
demand is due largely to economic growth in developing nations, especially China,
where oil demand grew by twenty percent (20%) in 2004 and is expected to grow by
a similar amount in 2005;
(5) The price of crude oil is the major factor driving up prices for gasoline, as well as
for oil used for home heating in addition to commercial and industrial purposes.
Natural gas for home heating and other purposes has been driven to record-high
prices as a result of supply constriction and increased demand from the industrial
sector;
(6) Technologies have long existed for producing transportation fuels from indigenous
fossil and biomass energy resources in the United States, and research has
demonstrated that coal-based alternate fuel technologies are cost-effective when the
world price of petroleum exceeds thirty-five dollars ($35) per barrel;
(7) The United States has trillions of tons of indigenous fossil energy resources and
agricultural capacity that rival total worldwide conventional oil reserves. These
domestic resources are capable of producing alternate transportation fuels sufficient
to make the United States independent of foreign petroleum imports. Kentucky has
hundreds of years of fossil energy resources, and the Commonwealth’s
agriculture produces substantial biomass materials for production of premiumquality liquid transportation fuels;
(8) The development of an alternate transportation fuels industry in the United States
will create long-term reliable demand for Kentucky’s energy and agricultural
resources, stabilizing both the energy industries and the agriculture community;
(9) Coal-based alternate transportation fuel technologies are capable of producing
environmentally superior transportation fuels from near-zero-emission plants with
removal or capture of virtually all pollutants, including sulfur dioxide, nitrous
(10)
(11)
(12)
(13)
(14)
(15)
oxides, mercury, and carbon dioxide, and from biomass-based technologies that are
very environmentally positive. The United States can set an example for the world
by implementing these technologies, and Kentucky is poised to lead the way;
Coal-based technologies in the United States are capable of producing pipelinequality natural gas and industrial-quality natural gas at prices which are below
current annual market prices for natural gas;
Kentucky’s universities have for several decades been among the leading
entities in the United States doing research on transportation fuels from coal and oil
shale. The Kentucky Department of Agriculture has provided support relating to
development of transportation fuels from Kentucky agricultural materials;
Although developing an alternate fuels industry capable of reducing America’s
dependence on foreign sources of petroleum requires the large-scale financial and
technical resources of the federal government and private industry, only government
and industry in the states can ensure the most efficient and productive on-site
joining of technologies, energy resources, and industrial and transportation
infrastructure;
The economic, national security, and environmental advantages of establishing
thriving domestic alternative liquid fuels and synthetic natural gas industries vastly
outweigh the development costs. In contrast, doing little or nothing subjects
America to continued and repeated energy supply disruptions and to potentially
severe economic consequences;
Embarking on a national mission to achieve energy security and move toward liquid
and synthetic fuels independence will not only reduce risk and lower oil prices,
natural gas prices, and oil price volatility, it will also facilitate an industrial rebirth,
create jobs, foster new technology, and enhance economic growth; and
Kentucky, through its universities, has done the research and testing of these
environmentally responsible alternative liquid fuel technologies. Kentucky has the
natural resources to be the leader in achieving energy security and independence for
the United States.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 184, sec. 1, effective July 12, 2006.
Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 184, sec. 6
provides that KRS 152.710 to 152.725 and KRS 45A.615 shall be known as the
Kentucky Energy Security National Leadership Act.
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