The state of Kentucky in US has enacted a law that makes the employment of biomass resources a more attractive option for electricity suppliers in the state.

The bill SB 46 was singed into a law by Governor Steve Beshear on 5 March 2013, reported Biomass Magazine.

As per the legislation, the state’s Public Utilities Commission can allow utilities to recover biomass-based electricity purchase costs not recovered in the existing utility rates from a biomass facility that holds an Electric Generation and Transmission Siting certificate from the Kentucky State Board.

Full recovery over the entire agreement term, however, is subject to the commission determining whether the power purchase agreement is fair, just and reasonable.

If the commission approves cost recovery for any agreement under the new law, the recovery is valid for the entire initial agreement terms.

The bill was introduced in the senate in 11 January 2013 and passed after securing unanimous votes a month later.