Instead, I want to address the piece of legislation that seems to be the genesis of the recent turmoil, the “energy” bill. In reality, calling what likely will be passed as an “energy” bill is a gross mischaracterization. The current “energy” bill is nothing more than a tax incentive package intended to persuade a single company, Peabody Energy, to build a coal gasification facility in Kentucky. Actually, that isn’t quite accurate either. If the latest media reports are correct, in exchange for passage of a $300 million incentive package, Peabody will recommend to its equity group that the group should focus exclusively on Kentucky for a $30-50 million feasibility study. That’s the crux of what we are discussing here. It is premature and irresponsible to be discussing a multi-billion dollar facility and hundreds of jobs at this juncture. The photo-op depicting smiling politicians with rolled-up sleeves, tie, and hardhat, hands firmly gripping shiny new shovels, breaking ground on the new facility will likely take place long after Gov. Fletcher and Speaker Richards have left office, if such a picture is ever taken.

Looking back through all the material published in the Courier Journal and the Lexington Herald-Leader in recent months regarding this issue, one can’t help but be left wondering what exactly it is we Kentuckians are wanting Peabody to build. The proposed facility had been described as everything from a $4 billion coal liquefaction plant to a $2 billion coal gasification facility and just about everything in between. The most recent incarnation is a $3 billion coal-to-natural gas operation but please don’t quote me on that as I suspect the description will change again. I only mention this to point out that if such a big deal is going to be made of this proposed plant, we need to know exactly what it is we are agreeing to subsidize before committing $300 million dollars of tax-payer money.

Looking beyond all of this, my primary concern is that, based on the public statements of the leaders in Frankfort, passage of the incentive package is all but a done deal. I want to offer some words of caution, let’s not blindly rush to pass an incentive package without first fully investigating and considering the ramifications and consequences of such a plant operating in Kentucky. And if we feel compelled to have a special session to address energy, let’s pass an energy bill worthy of the title, a piece of legislation that addresses the most salient issues concerning energy in Kentucky.

Unanswered questions remain regarding what to do with the carbon emissions inherent to the gasification process. As the Kentucky Resources Council director, Tom FitzGerald points out in the July 26 Courier-Journal, the issue of dealing with the carbon dioxide such a plant will produce must be addressed. Especially once one takes into consideration that the federal government, in all likelihood, is going to impose stricter limits on carbon emissions in the not too distant future. Such a move will have broader ramifications for Kentucky beyond the effects such a measure will have on a proposed coal gasification plant. Over 90 percent of the electricity generated in the state originates from coal-fired generation facilities. These are real plants in operation today that will be immediately impacted, as will our utility bills. Any responsible action taken by the legislature must address the issue of carbon emissions.

Mr. FitzGerald is quoted as saying “I would hope that when legislators do come together in early August it’s to look at a broader spectrum of energy-related issues, rather than just put together a discrete energy package for a particular company.” I couldn’t agree more. If we tax-payers are expected to bear the financial burden of a legislative special session along with the expenses associated with any legislation passed, it is imperative that we demand of our legislators that these tax dollars not be spent in vain. Any legislation passed that falls short of a comprehensive and forward thinking energy plan will be woefully inadequate and truly a waste of our tax dollars."