By Kenya Stump

We often talk about the state’s energy priorities in terms of its energy policy and its energy strategy. In basic terms, an energy policy is a guiding principle that leads a government or agency to make laws or to take action. It’s a “point you in the right direction” guide while the energy strategy is action-oriented and is the “how to” guide.  

In recent decades, it has been customary for each sitting Governor to craft a comprehensive energy strategy that is overseen by Kentucky’s State Energy Office and, in turn, influences state government and private sector actions.   

I recently sat down with 20 years worth of energy strategy documents, curious to see how our energy priorities have changed over the decades. 
 

While these documents were an interesting time capsule, there was a lot of consistency. If I gleaned nothing else from the retrospective, it’s that energy policy is a non-partisan issue, with common goals that transcend political party.  

It also shows us all the ways that energy, the environment, and economic development are connected to the common goals of good paying jobs, families that can pay their bills, a home that is comfortable and safe, and an environment that is respected and protected with natural resources that are conserved. It also shows a strong commitment to the utilization of all fuels for the security and betterment of the Commonwealth.   

Twenty years ago, Governor Ernie Fletcher released his comprehensive energy strategy, “Kentucky’s Energy: Opportunities for Our Future,” which recognized that energy development, economic development and environmental quality are mutually inclusive goals. This has been a common thread in every governor’s energy strategy since then. 

“Kentucky is a land blessed with abundant natural resources, industrious people, and great natural beauty,” Fletcher wrote. “Our challenge today is to continue to grow our economy, utilize our resources in a sustainable manner, and protect and maintain our commitment of environmental quality.” 

Fletcher’s strategy primarily focused on three principles: maintaining low-cost energy, responsibly developing Kentucky’s energy resources, and preserving our commitment to environmental quality. The energy strategy laid out 53 distinct action items, which included improving energy efficiency, developing biofuels as renewable energy, and utilizing coal and untapped natural gas to maintain Kentucky’s low-cost electricity.  

A key focus was a perpetual commitment to our energy future.  

One of the things to come out of Fletcher’s administration was a Public Service Commission report that would serve as a blueprint to “promote future investment in electric infrastructure in Kentucky, to protect Kentucky’s low-cost electric advantage, to maintain affordable electricity rates for all Kentuckians, and to preserve Kentucky’s commitment to environmental protection.”  

In 2008, Gov. Steve Beshear released his energy strategy, “Intelligent Energy Choices for Kentucky’s Future: Kentucky’s 7-Point Strategy for Energy Independence.” At the time, the nation faced high natural gas prices and reliance on imported oil, and the U.S. and other countries were taking significant action around carbon emissions. The challenge outlined in Beshear’s strategy was “to develop clean, reliable, affordable energy sources that help us improve energy security, reduce carbon dioxide emissions, and provide economic prosperity,” and for Kentucky to become a leader in the energy revolution. As a result, Kentucky’s energy office began assessing the impact greenhouse gas regulation would have on the state’s electricity generation portfolio. 

The strategy focused largely on improving energy efficiency and developing the state’s renewable resources. Beshear listed the following as top priorities: (1) improve the energy efficiency of Kentucky’s homes, buildings, industries, and transportation fleet, (2) increase Kentucky’s use of renewable energy , (3) sustainably grow Kentucky’s production of biofuels; (4) develop coal to liquids industry to replace petroleum-based liquids, (5) implement a major and comprehensive effort to increase gas supplies, including coal to gas; (6) initiate aggressive carbon capture/sequestration projects; and (7) examine the use of nuclear power for electricity generation. 

During this time, we saw a number of outcomes that aligned with then-Gov. Beshear’s strategy. 

The General Assembly directed the Public Service Commission to review regulations and recommend ways to, among other things, encourage utilities to use more renewable energy and eliminate impediments to consumer energy efficiency programs, while also focusing on low energy costs and preparing for future energy demands. 

Several years later, the PSC approved Kentucky’s first utility-scale solar project, along with a host of carbon capture initiatives in partnership with the University of Kentucky. We also made great strides in energy efficiency within state government and K-12 schools. During this time, we saw a rise in energy efficiency and conservation incentives and programs within local governments.  

Kentucky also began to focus on our energy resilience. In 2011, the PSC evaluated the reliability of Kentucky’s electric utilities, and published an annual reliability report that identified vulnerable areas of our electric grid. 

While Governor Bevin didn’t release an official energy strategy, Kentucky’s state energy office continued work supporting the utilization of all of Kentucky’s energy resources for the betterment of the Commonwealth while protecting and improving the environment. The administration did bring renewed focus on preserving Kentucky’s coal assets, but work also centered on the growth and adoption of electric vehicles and power sector modernization. 

During this period, and in the administration to follow, emphasis was placed on emergency response and preparation. We strengthened the awareness andunderstanding of our energy issues using Geospatial Information Systems and remote sensing technology. We also participated in a series of large-scale, multi-agency disaster preparedness exercises, focusing on a catastrophic earthquake scenario in the New Madrid Seismic Zone impacting the central U.S. 

Year over year, what has become evident is that every energy strategy is shaped by external influences, ranging from manmade and natural impacts or disruptions, national and international policies, energy markets, business demands, technology, and federal regulations. Those influences would come to the forefront with the next strategy.  

In 2020, the energy policy and strategy developed under Gov. Andy Beshear was greatly influenced by markets and external events — natural disasters, a multi-year pandemic —  but held true to the importance of working together and building back better.  

“Our world is changing,” Gov. Beshear wrote in his energy strategy. “From our infrastructure’s increasing threats from natural, man-made and cybersecurity events, to a changing corporate business culture, and international and national market fluctuations, these changes offer us innovative emerging industry opportunities where our history, infrastructure and culture enable us to step boldly into the future and lead the nation.” 

Still, Gov. Beshear described his administration’s energy strategy as “one where energy and environment meets economic development,” echoing the sentiment of previous leaders.  

According to the strategy, reliable energy is essential to our health and wellbeing, while fuel diversity can enhance economic stability. We must rely on domestically procured fuels and utilize all types of fuels — new and old. The strategy also called for proper regulatory oversight to ensure both reliable service and financially stable utilities. 

To that end, Gov. Andy Beshear’s strategy focused on community resilience, advanced energy manufacturing, innovative fuels and building new energy infrastructure. 

That strategy resulted in significant economic momentum in battery storage and electric vehicle investments. Biofuels remained a focus with movement around sustainable aviation fuel, renewable natural gas and large-scale independent solar project development. Nuclear energy became a focus again with the resurgence of the Paducah Gaseous Diffusion Plant as an ideal location, and statewide modeling showed a need for nuclear generation to round out Kentucky’s all-of-the-above fuel strategy.  

Kentucky also saw the Lewis Ridge Pumped Storage Project, which can provide 8-10 hours of continuous generation during times of emergency — the first project of its kind in the state. 

The state’s energy professionals have spent considerable time in the past few years on response and recovery to 15 major disaster declarations. Outside those scenarios, our work on resilience has continued. The state’s Energy Security Plan, which details how we respond to energy emergencies, was approved by the Department of Energy (DOE) and serves as a nationwide model. At the community level, our work focuses on energy conservation and local power generation, which allows communities to keep critical services running in the event of an emergency. 

Looking ahead, Kentucky’s energy strategy is a variation on a common policy theme: our desire to build on our rich history as an energy innovator and a strong commitment to energy security. It is a sustained commitment to utilize all of Kentucky’s energy resources: fossil, renewables and nuclear in a way that achieves security, sustainability, affordability, resilience and reliability.  

We are driven to provide our families with quality of life that includes economic stability, and a healthy environment. We understand that energy is central to that goal. The debates will continue on how we produce and distribute electricity, how much it should cost, who pays for it, and how we ensure that our infrastructure is secure, reliable, and resilient. Through the years, the answers and actions to these questions have shown us that when the legislative, executive, and private sector work together in coordinated effort, all Kentuckians win.  

Kenya Stump is the executive director of the Kentucky Office of Energy Policy. Learn more about OEP and its programs at eec.ky.gov.