KentuckySB 572026 Regular SessionSenateWALLET

AN ACT relating to nuclear energy development.

Sponsored By: Danny Carroll (Republican)

Signed by Governor

Fiscal NoteBoards And CommissionsEconomic DevelopmentEnergyFederal Laws And RegulationsNuclear EnergyPublic Records And ReportsPublic Utilities

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Utilities can recover permitting costs

Regulated utilities can ask the Public Service Commission to add nuclear permitting and licensing costs to rates. This can raise customer bills. The Commission cannot approve recovery for any costs that a state grant already covered.

Nuclear site grants with safeguards

The state runs a Pilot Program to help license new nuclear plants. Grants cover up to one‑third of real permitting costs, capped at $25 million per project. Applicants must be utilities, affiliates, or their partners, in communities that applied for a nuclear‑ready status; to get an award, the site’s community must already hold that designation. Applications must show clear benefits for ratepayers and the local community. Application materials are confidential. Grantees must post a surety bond equal to the grant. You must repay the full grant within 60 days if you miss key milestones: apply for an early site permit within 1 year of funding; apply for a construction permit or combined license within 5 years after the early site permit (one‑year extensions may be allowed); or start construction within 10 years after permits (one‑year extensions may be allowed). Transferring all interest to a non‑utility before construction can also trigger repayment unless the authority approves. The Kentucky Nuclear Energy Development Authority sets application, eligibility, and scoring rules and reviews partnership terms.

New state authority for nuclear

The law creates the Kentucky Nuclear Energy Development Authority at the University of Kentucky’s Center for Applied Energy Research. It promotes nuclear economic development, runs grant work, and advises the state. An advisory board has 22 voting and 8 nonvoting members and meets at least quarterly. Members are unpaid. The board hires a qualified director. Starting January 1, 2027, each member gets at least 20 hours of annual nuclear training. The authority makes a strategic plan, issues a nuclear economic impact analysis at least every two years, and sends an annual report by December 1 each year starting in 2025.

Tax incentive terms for businesses

The law sets maximum terms for KRS 154.32 tax incentive agreements. Projects in enhanced incentive counties can run up to 15 years. Projects in other counties can run up to 10 years. It also clarifies timing rules like the activation date for agreements.

Sponsors & Cosponsors

Sponsor

Danny Carroll
Republican • Senate

Cosponsors

Greg Elkins
Republican • Senate
Gerald A. Neal
Democrat • Senate
Matthew Deneen
Republican • Senate
Max Wise
Republican • Senate
Phillip Wheeler
Republican • Senate
Robby Mills
Republican • Senate
Stephen West
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 119 • No: 11

House vote • 3/26/2026

3rd reading, passed

Yes: 82 • No: 11

Senate vote • 3/2/2026