Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 151.100-151.600, 151.700-151.730, 151.990,
223.400-223.460, 224.70, 224.73
NECESSITY, FUNCTION, AND CONFORMITY: KRS 151.700 through
151.730 authorize the Kentucky River Authority to manage the surface water and
groundwater of the Kentucky River basin. The authority has the power and duty
to develop and to implement programs relating to the locks and dams on the
Kentucky River; to acquire, to sell and to lease property; to develop
recreational areas; to issue revenue bonds; to assess fees for water use; to
contract for services; to adopt administrative regulations protecting water in
the Kentucky River basin; to develop and to implement comprehensive plans for
protecting the water of the Kentucky River basin; and to collaborate with the
Natural Resources and Environmental Protection Cabinet and other state agencies
in coordinating Kentucky River basin water resource and water quality
activities. This administrative regulation establishes Tier II water use
fees.
Section 1. Purpose. This
administrative regulation establishes Tier II fees and incidental charges for
the withdrawal of surface water from the main stem of the Kentucky
River.
Section 2. Persons Required
to Pay Tier II Fees. The persons identified in this section of this
administrative regulation shall pay to the authority the Tier II fees and
incidental charges established by this administrative regulation, unless
exempted by Section 3 of this administrative regulation.
(1) A person who withdraws surface water from
the mainstem of the Kentucky River downstream of lock and dam 14 for noncontact
cooling water shall pay a Tier II fee based on net withdrawal, which shall be
150 percent of the Tier II fee for gross withdrawal.
(2) Unless entitled to a fee based on net
withdrawal in accordance with subsection (1) of this section, a person who
withdraws surface water from the main stem of the Kentucky River downstream of
lock and dam 14 shall pay a Tier II fee based on gross withdrawal.
Section 3. Persons Exempted from
Paying Tier II Fees. The following persons are exempted from paying the Tier II
fees and incidental charges established by this administrative regulation:
(1) A person who withdraws surface water from
the main stem of the Kentucky River downstream of lock and dam 14 primarily for
agricultural use; and
(2) A person
whose gross withdrawal of surface water from the main stem of the Kentucky
River downstream of lock and dam 14 is less than 10,000 gallons per
day.
Section 4. Tier II
Fee Rates.
(1) The Tier II fee for gross
withdrawal shall be $0.016 per 1000 gallons and any portion thereof, from the
effective date of this administrative regulation through retirement of any
revenue bond for which the Tier II fee provides debt service.
(2) The Tier II fee for net withdrawal shall
be $0.016 per 1000 gallons and any portion thereof, multiplied by one and
five-tenths (1.5), from the effective date of this administrative regulation
through retirement of any revenue bond for which the Tier II fee provides debt
service.
(3) The Tier II fees may
be amended as necessary to fund the Tier II projects budgeted by the authority.
The authority shall submit to the General Assembly with its budget request a
fee structure necessary to fund those Tier II projects. The authority shall set
the amended fees based on the approved budget.
(4) Charges incidental to Tier II fees. The
authority may assess a person required to pay a Tier II fee the following
charges incidental to collection of that fee:
(a) A deposit of up to three (3) months
estimated billings, except for bills of local governments, with interest to
accrue at six (6) percent per annum and the deposit to be returned in a year if
prior payments were timely;
(b) A
late payment charge of up to five (5) percent of the last quarter's bill for
payments that are twenty (20) days late or, for local governments, more than
ten (10) days after the last regular meeting of local government, whichever is
later;
(c) A returned check charge
of fifteen (15) dollars; and
(d) A
field collection charge, with a minimum charge of fifty (50) dollars and a
maximum charge of $500.
Section 5. Collection of Fees.
(1) A person required by this administrative
regulation to pay a Tier II fee shall pay that fee quarterly and shall pay
charges incidental to that fee upon the authority's request. Payment shall be
made within ten (10) days of receipt of a bill from the authority.
(2) Fees and incidental charges shall be paid
by check or money order, made payable to the Kentucky State Treasurer. The
authority may require a check to be certified if a previous check to the
authority was returned for insufficient funds.
(3) A person paying a Tier II fee for gross
or net withdrawal shall complete and submit to the authority the water
withdrawal reporting form incorporated by reference in Section 6 of this
administrative regulation, identifying the number of gallons withdrawn during
that quarter. A person paying a Tier II fee for net withdrawal shall also
complete and submit to the authority the water discharge reporting form
incorporated by reference in Section 7 of this administrative regulation,
identifying the number of gallons discharged. The water withdrawal and
discharge reporting forms shall be submitted within fifteen (15) calendar days
after the end of the quarter. A person paying a Tier II fee may use the water
withdrawal reporting form required by KRS 151.160 and 401 KAR 4:010 in lieu of
the water withdrawal reporting form incorporated by reference in Section 6 of
this administrative regulation.
Section 6. Incorporation by Reference of
Water Withdrawal Reporting Form. The document entitled "Water Withdrawal
Reporting Form" is hereby incorporated by reference. The effective date shall
be the effective date of this administrative regulation. It is available for
public inspection and copying, subject to copyright law, at the office of the
Kentucky River Authority, 107 Mero Street, Frankfort, Kentucky 40601, between
the hours of 8 a.m. and 4:30 p.m., Mondays through Fridays, excluding state
holidays.
Section 7. Incorporation
by Reference of Water Discharge Reporting Form. The document entitled "Water
Discharge Reporting Form" is hereby incorporated by reference. The effective
date shall be the effective date of this administrative regulation. It is
available for public inspection and copying, subject to copyright law, at the
office of the Kentucky River Authority, 107 Mero Street, Frankfort, Kentucky
40601, between the hours of 8 a.m. and 4:30 p.m., Mondays through Fridays,
excluding state holidays.
STATUTORY AUTHORITY: KRS 151.710, 151.720, 151.725,
151.730