FRANKFORT, Ky. (Nov. 20, 2008) - Proclaiming Kentucky's place as a
national leader, Gov. Steve Beshear was joined today by Energy and
Environment Cabinet Sec. Len Peters as he unveiled the state's
first-ever comprehensive energy plan, which calls for significant
reductions in greenhouse gas emissions while creating some 40,000 jobs tied to energy production and conservation between now and 2025.

"Kentucky can be a national leader in energy technology and production," Gov. Beshear said in unveiling his nearly 150-page plan, titled "Intelligent Energy Choices for Kentucky's Future." "We can help the country move toward greater energy self-reliance. I intend to put us on such a path."

Toward that end, Gov. Beshear said the new energy plan builds on the
efforts of state legislators - such as Rep. Rocky Adkins and Sen. Robert Stivers - who in recent years have crafted legislation designed to invest more in technology, research and energy production. Beshear said the plan, which he charged Sec. Peters to develop when he established the Energy and Environment Cabinet and appointed him secretary, is a framework for future initiatives as well as more discussion. The plan centers on seven primary strategies:

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 a coal-to-liquids industry in Kentucky to replace
petroleum-based liquids;

5) Implement a major and comprehensive effort to increase gas,
including coal-to-gas in Kentucky;

6) Initiate aggressive carbon capture/sequestration projects for
coal-generated electricity in Kentucky; and

7) Examine the use of nuclear power for electricity generation in
Kentucky.

Specifically, the plan calls for a 20 percent reduction from 1990 levels
in greenhouse gas emissions by 2025. Moreover, that is a 50 percent
reduction from emission levels if Kentucky continues on its current pace
of electricity and energy production, a pace that would require a
dramatic increase in both production and demand.

While coal and other fossil fuels must and will remain central to the
state's energy production needs, the plan calls for diversification,
conservation and efficiency to reduce demand, and an increasing reliance on renewable and alternative sources. Beshear said these are critically important steps that must be undertaken for Kentucky's economic, energy and environmental success and security.

An element of that diversification effort is to explore the potential of
nuclear power, already utilized in a majority of states, including some
bordering Kentucky.

Significantly, the plan proposes the creation of Kentucky's first
Renewable and Efficiency Portfolio Standard (REPS) to promote greater
energy efficiency, conservation and use of renewable resources. In
addition, the plan calls for the creation of an Alternative
Transportation Fuel Standard (ATFS) that will help Kentucky transition
away from dependence on foreign petroleum.

By 2025, the plan for the REPS contemplates that 25 percent of
Kentucky's energy needs should be provided by greater efficiency,
conservation and use of renewable and alternative energy sources, such as wind and solar power and biofuels.

Those percentages are largely in line with the energy plan being
proposed by President-elect Barack Obama, who has pledged to make energy a centerpiece of his administration.

"The choice we face is to take no action and see large price increases
in energy with limited economic security," Gov. Beshear said, "or to
take prudent actions now for a better chance at smaller price increases, as well as increased economic security."

Another pillar of the plan is greatly expanded research into carbon
capture and sequestration, as well as the development of a large
coal-to-liquids industry. The plan proposes a goal of 50 million tons of
coal used per year to produce 4 billion gallons of liquid fuel per year
by 2025.

In addition, by 2025, the plan proposes that Kentucky evaluate and
deploy technologies for carbon management for use in 50 percent of
coal-based energy applications.

Taken together, these initiatives - among others - can lead to the
creation of 30,000 to 40,000 new Kentucky jobs "as a result of a booming diversified energy sector," Gov. Beshear said.

As the economy for both the state and nation faces huge challenges,
Beshear said Kentucky's emergence as a leader in energy is a critically
important economic strategy.

The state faces a projected shortfall in this budget year of some $300
million, according to internal estimates. The Consensus Forecasting
Group, a team of outside, independent economists expected to issue a
formal report on Nov. 21, has said that shortfall could be even worse.

Gov. Beshear said that in both the short-and-long-term, energy can and
must play an important role in helping the economy recover at both the
state and national levels.

"For Kentucky to be a national leader, we must fully integrate the
development of our energy resources with our mission to protect the
environment," he said. "The seven strategies, when implemented, will
restructure our energy portfolio so that we can use energy in its
broadest sense - as a tool for economic development and preserving our environment - which Kentucky desperately needs."