Kentucky's energy commission director controls decisions with an advisory board

The executive director runs the Energy Planning and Inventory Commission, while its board and executive committee advise the director. The University of Kentucky provides administrative support. The director controls hiring and contractors, and the commission sets professional staff pay. State purchasing rules apply, but Finance and Administration Cabinet approval is not required. Personal service contracts remain subject to legislative committee review. State funding, gifts, grants, and federal funds may support commission duties only. Unused money and interest carry into the next budget year. State agencies must answer the director's information requests within 30 days unless the director grants more time. Recommendations are due each December 1. The commission ends December 31, 2035. The emergency clause makes the law effective upon becoming law.

The Attorney General appoints two executive committee members, subject to Senate confirmation. The five-person executive committee includes the board's chair and vice chair, two Attorney General appointees, and one member elected by the board. The two appointees must have leadership-level qualifications in coal production or electric utilities. The executive committee hires the director, subject to Senate confirmation. It may dismiss the director only for cause, after written notice and an opportunity for a hearing. Only the legislature may reorganize the commission. Executive committee members cannot have direct financial ties to utilities beyond being retail customers. The replaced appointees' terms end when the law takes effect. The Attorney General's replacement appointments were required on or before August 1, 2026.

Utilities must give notice before seeking approval to retire existing coal, oil, or natural gas power plants or individual generating units. Review covers existing coal, oil, and natural gas generating plants or units. Residents may comment at a public hearing in the county where retirement is proposed. Kentucky's Public Service Commission must consider submitted reports and statements before approving retirement and explain that consideration in its decision. Applications must include submitted reports and statements, or evidence that more than 180 days have passed since notice without any being provided. The executive committee and director may participate together or separately in any Public Service Commission proceeding. After notice, the hearing is due within 90 days and the committee report within 135 days, following the hearing. The director may submit a separate report within 180 days.

The commission must assess coal resources, electricity reliability, and energy costs in eastern Kentucky. The assessment covers eastern Kentucky counties included in the Appalachian Regional Commission. It examines coal power, other uses for coal, and ways to reduce energy costs. The commission must consult utilities, consumer advocates, and other relevant groups. It must consider jobs, economic development, and community transitions, and coordinate with other agencies and regional planners as appropriate. The commission must report to the Legislative Research Commission by December 1, 2026, and publish its analysis on its website.