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Kentucky Incentives and Laws for Natural Gas

The list below contains summaries of all Kentucky incentives and laws related to Natural Gas.

State Incentives

Alternative Fuel Research, Development, and Promotion

The Kentucky New Energy Ventures (KNEV) program provides grants and investments to companies for research, development, and commercialization of alternative fuels and renewable energy. Specifically, KNEV is designed to: 1) grow Kentucky-based alternative fuel and renewable energy companies to promote commonwealth-wide, innovation-driven economic growth; 2) stimulate private investment in Kentucky-based alternative fuel and renewable energy enterprises; 3) expand the alternative fuel and renewable energy knowledge base, talent force, and industry in Kentucky; 4) develop an alternative fuel and renewable energy resource network to build the technical and business capacity of entrepreneurs through informal and formal strategic support; and 5) build commonwealth-wide awareness of the economic development opportunities Kentucky's alternative fuel and renewable energy industry offers. Alternative fuels include biodiesel, ethanol, cellulosic ethanol, synthetic natural gas, fuels produced from coal, and other fuels produced from a renewable or sustainable source. To be eligible, a business must have its principle base of business or at least 51% of the property and payroll in the commonwealth. Additional eligibility requirements apply. (Reference Kentucky Revised Statutes 154.20-410 and 154.20-415)

Alternative Fuel and Vehicle Promotion

The Kentucky Department for Energy Development and Independence (Department) encourages the responsible use of transportation fuels by supporting academic research, public education, and collaborative partnerships involving alternative fuels and alternative fuel vehicles (AFVs). The Department facilitates projects that promote the use of AFVs and establish alternative fuel infrastructure in Kentucky.

Point of Contact
Tim Hughes
Director, Division of Biofuels
Kentucky Department for Energy Development and Independence
Phone: (502) 564-7192
Fax: (502) 564-7406
timd.hughes@ky.gov
http://energy.ky.gov/biofuels/Pages/default.aspx

Utility/Private Incentives

Natural Gas Infrastructure Technical Assistance

Atmos Energy offers preliminary feasibility studies for compressed natural gas fueling stations and may assist with vendor selection on a case-by-case basis.

Point of Contact
Walter C. Miller
Energy Services Consultant
Atmos Energy
Phone: (817) 303-2903
Fax: (817) 303-2929
walter.c.miller@atmosenergy.com

Low Emission Vehicle Electricity Rate Incentive - Louisville Gas & Electric

Louisville Gas & Electric offers a pilot Low Emission Vehicle (LEV) time-of-use electricity rate for residential customers who own an electric vehicle, plug-in hybrid electric vehicle, or natural gas vehicle fueled through a home fueling appliance. The rate is limited to 100 residential customers.

Laws and Regulations

Vehicle Acquisition Priorities and Alternative Fuel Use Requirement

The Kentucky Finance and Administration Cabinet (Cabinet) must develop a strategy to replace at least 50% of commonwealth motor fleet light-duty vehicles with energy-efficient vehicles including hybrid electric, advanced lean burn, fuel cell, and alternative fuel vehicles. The Cabinet must also develop a strategy to increase the use of ethanol, biodiesel, and other alternative fuels in commonwealth motor vehicle fleets. The Cabinet must report targeted vehicle and fuel usage amounts annually. (Reference Kentucky Revised Statutes 45A.625)

State Energy Plan Alternative Fuel Requirements

The Governor's Office of Energy Policy (Office) oversees the development and implementation of Kentucky's comprehensive energy strategy. Specifically, the Office must develop and implement a strategy for the production of alternative transportation fuels and synthetic natural gas from fossil energy resources and biomass resources, including biodiesel and ethanol. The commonwealth energy plan, Intelligent Energy Choices for Kentucky's Future, was developed in 2008 and proposes seven strategies to support a renewable and efficiency portfolio standard, and to develop an alternative transportation fuel standard and set fuel production goals. (Reference Kentucky Revised Statutes 152.720)

Natural Gas Deregulation

The rates, terms, and conditions of service for the sale of natural gas to a compressed natural gas fueling station, retailer, or to any end-user for use as a motor vehicle fuel are exempt from Kentucky Public Service Commission regulation. (Reference Kentucky Revised Statutes 278.508)