Ky. senate committee passes $300 mil package to attract project
Washington (Platts)--9Jul2007
platts.com
As pandemonium reigned in a special session of the Kentucky General Assembly,
a Senate committee on Friday voted unanimously to approve a nearly $300
million financial incentive package aimed at attracting a $3 billion Peabody
Energy coal-to-liquids project to the Bluegrass State.
The 9-0 vote by the Senate Agriculture and Natural Resources Committee
followed Governor Ernie Fletcher's early morning plea to pass Senate Bill 1
and send the measure to the full Senate, where Republicans outnumber Democrats
21 to 16. One senator is an independent.
Rick Bowen, president of Peabody Energy BTU, told the committee the proposed
synthetic natural gas plant would use 2.5 million short tons of coal annually,
and create 4,050 construction jobs and 2,805 full-time positions after it is
built. Peabody expects to make a final site decision within 90 days.
Bruce Phillips, spokesman for the Kentucky Legislative Research Commission,
told Platts that the bill "will be available" for Senate consideration on
Monday.
Whether it will, in fact, be considered is another question. On Thursday, the
Democrat-controlled House of Representatives abruptly adjourned without taking
any action. Democrat leaders say the special session, costing taxpayers about
$60,000 per day, is unnecessary and accuse Fletcher, a Republican running for
re-election this year, of playing politics. Fletcher, in turn, is making the
same accusations against the Democrats, who hold an overwhelming 61 to 39 edge
in the House.
Fletcher's press secretary, Jody Whitaker, said late Friday that Democratic
leaders had agreed to meet with the governor on Monday to discuss his request
to resume the special session.
If those talks fail, the Senate also is expected to adjourn this week, dooming
any chances of enacting the incentive legislation this year. The General
Assembly's next regular session is scheduled to begin in January.
In late June, Fletcher identified at least four companies interested in
pursuing CTL projects in the state. In addition to Peabody, they were TECO
Coal, RENTECH and EnviRes.
Peabody is believed to be looking at a site in Union County for the SNG plant.
-- Bob Matyi, bobmaty@adelphia.net |
