EcoEKY: Green News from Eastern Kentucky

from Pol Watchers, the Lexington Herald-Leader's political blog:

April 15, 2008

Could an energy bill be a seed for bicameral agreement?

The last crucial work day of the Kentucky General Assembly began Tuesday with the merging of two energy bills -- one from the House and one from the Senate -- aimed at making Kentucky's government, small businesses and homes more efficient.

The Senate's Appropriations and Revenue Committee blessed the marriage of H.B. 2, offered by House Democratic Floor Leader Rocky Adkins, to S.B. 165, a measure sponsored by independent Sen. Bob Leeper of Paducah.

The full Senate and House now must approve the new mega-energy-efficiency bill before midnight when all legislative work for this session must be completed.

Adkins' energy bill would provide tax credits for home builders to construct more efficient and "green" houses as well as home buyers to purchase U.S. Department of Energy-approved Energy Star appliances.

"If we’re going to have a comprehensive and balanced energy policy in Kentucky, then we have to look at all the energy opportunities that we have,” Adkins said. “I think that energy efficiency and conservation and renewable energy opportunities are a big part of us trying to achieve the type of policy in Kentucky to reach energy independence in this country."

If the bill is approved, taxpayers could apply for credits on their 2009 tax forms for purchases made after Jan. 1, 2009.

It's unclear how much those new state tax credits -- which Adkins said will be structured similar to the federal tax credits -- will cost Kentucky in revenue, said Adkins, of Sandy Hook. But the costs wouldn't be seen until the second year of the 2009-2010 biennium.

But whatever the cost will be, Leeper's bill should free up enough cash to cover it, said Leeper.

Leeper initially proposed $50 million worth of bonds to be sold to cover low-interest loans to small businesses to purchase energy efficient electronics and make their buildings better insulated. But he agreed to reduce that amount to $30 million in bond funds to free up money to cover the tax credits in Adkins' H.B. 2.

"It ends up being a bottom line wash," Leeper said.

His legislation also calls for $50 million in bond funds to pay for state government buildings to be fitted with energy efficient lightbulbs, windows and other more efficient components. Energy savings will cover the annual payments on those bonds.

Both Adkins and Leeper denied that the pairing of their bills was part of a broader game of horse trading. Instead, it was something that came together two weeks ago when both men were working on crafting the state budget.

"It's just good, sound policy," Leeper said.

- Ryan Alessi