AGP Executive Report

Energy & Power: The Trump administration announced $850M for coal plant modernization, two new coal plants, and coal-export expansion using the Defense Production Act—an effort framed as grid reliability and lower energy costs, but criticized as a subsidy for an uncompetitive industry. Local Infrastructure: Crews are about 90% done with demolition for Louisville’s I-65 Central Corridor Project, with partial reopenings planned (southbound by July 1; full traffic later). Data Centers & Zoning: Lexington moved to a data-center moratorium while Louisville released a draft ordinance; in Murray, planners delayed forwarding a data-center draft after public pushback. Regional Development Funding: Perry County is eyeing up to $24M tied to airport runway and housing projects after federal appropriations advanced. Workforce & Industry Leadership: Murray State alum Eric King was appointed to the National Petroleum Council, and EPIC is also releasing analysis on cost allocation for large-load data centers. Public Safety Training: Middletown is planning a $25M regional law enforcement training center. Tourism Economy: Gov. Beshear touted record 2025 Kentucky tourism—$14.6B impact and nearly 97,000 jobs. Manufacturing Supply Chain: Ford’s aluminum supplier Novelis restarted its Oswego hot mill after fires, aiming to reduce truck production disruption. Agriculture: Blue Grass Stockyards reported lower receipts at its June 6 auction.

Energy & Grid: The Trump administration announced $850M for coal plant modernization, plus two new coal plants and expanded coal-export infrastructure, using Defense Production Act authority—aimed at grid reliability, but criticized as a subsidy for an uncompetitive industry. Data Centers & Local Control: Kentucky counties keep hitting pause: Allen County approved a two-year moratorium on data centers, citing infrastructure, energy use, land and environmental concerns; Lexington also enacted a moratorium, while lawsuits challenge Cave City’s data-center limits. Agriculture: Kentucky Agriculture Commissioner Jonathan Shell said the state is monitoring confirmed New World screwworm detections, stressing the USDA view that the risk to people and the food supply is very low. Manufacturing Tech: Ford rolled out IBM’s AI-powered visual inspection at 17 North American plants to catch assembly defects in real time and reduce warranty and rework costs. Transportation & Construction: KYTC says U.S. 68 will close at I-24 Exit 16 in McCracken County for roundabout work starting June 22, with businesses bracing for reduced traffic. Business & Community: Louisville Custom Signs completed Phase 1 ADA-compliant signage for LMPD headquarters, including tactile/Braille wayfinding and a four-story exterior building ID. Fuel Watch: Diesel prices dipped statewide in the week ending May 30, with multiple Kentucky counties reporting the lowest local diesel deals around the mid-$4s.

Coal & Power Funding: The Trump administration announced up to $850M for coal plant modernization and new builds, with Kentucky projects included—Senate President Robert Stivers framed it as a reliability and affordability move for the state’s energy-heavy economy. Energy Infrastructure Disruption: Covington businesses are bracing for traffic shifts tied to the Brent Spence Bridge Corridor Project, warning that construction could stretch into years and hurt foot traffic. Data Centers Fight in Kentucky: Lexington enacted a data center moratorium while a lawsuit challenges it; Cave City is also facing legal action over its own pause as residents question utilities, infrastructure, and impacts near Mammoth Cave. Agriculture & Animal Health: UK researchers received a $650,000 USDA grant to study uterine crowding in modern pig production; meanwhile, a Salmonella outbreak linked to moringa supplements expanded to 119 cases across 36 states, including Kentucky, prompting FDA recall updates. Public Health & Livestock Biosecurity: Kentucky is taking steps against New World screwworm as cases are reported in Texas and New Mexico. Local Business & Retail: PJ’s Coffee signed a 7-unit license deal to expand in Central Kentucky convenience stores. Transportation Policy: KYTC paused a proposed Dixie Highway “road diet” in Boone/Kenton, shifting to repaving and safety upgrades instead.

Energy Policy & Grid: The Trump administration announced $850M for coal plant modernization plus two new coal plants, using the Defense Production Act to support grid reliability and lower costs—an effort critics call a subsidy for an uncompetitive fuel. Municipal Finance: Kentucky’s prepaid energy market is moving fast, with multiple large bond deals priced in days, signaling strong demand for gas supply and project revenue financing. Local Energy Costs: Kentucky Power customers in eastern Kentucky are pushing back over high bills and “disconnect” notices, pointing to affordability strain. Data Centers & Local Control: A lawsuit challenges Cave City’s 12-month data center moratorium, alleging a specific development plan was submitted before the ban—adding fuel to Kentucky’s broader fight over data center growth. Legal & Business Risk: A national look at 2026 shows rising CEO-facing litigation and regulatory exposure, including new AI-related liability and shifting state enforcement. Agriculture: Beef cow slaughter is on pace for the lowest level on record, as producers keep cows longer amid strong prices and weather pressure. Public Health: Kentucky’s Safe Drinking Water Act compliance report highlights continued high compliance and reliability across the state’s water systems. Workforce Development: DeRocco Fellows named an 11-woman 2026 cohort focused on hands-on manufacturing and engineering roles. Food & Drink Industry: Louisville’s Prova Spirits launched Prova Select bourbon and rye built for cocktails first. Sports & Community: Kentucky mourns defensive lineman Nic Smith, found dead in a residence hall; authorities say no foul play suspected.

Data Centers & Local Rules: Butler County is weighing possible regulations for large data centers even though no projects are known, while other Kentucky counties have moved to pause or tighten rules amid concerns over water use and infrastructure strain. Energy & Grid Resilience: A new look at extreme heat says the U.S. power system is shifting from treating heat as a rare risk to planning for it as a baseline stressor, with reliability groups flagging the overlap of early-summer heat and maintenance outages. Agriculture Research: Kentucky State University research finds supplemental nitrogen fertilizer is unlikely to pay off for drought-prone, low- to moderate-yield soybean conditions, reinforcing the need for farm-by-farm guidance. Workforce & Policy in Frankfort: Legislators are in interim mode, with committees focused on economic development, workforce, tourism, small business, energy, natural resources, and transportation. Public Health & Animals: Kentucky’s Animal Control Advisory Board is offering up to $3,000 grants to counties for dog and cat spay/neuter programs. Food & Retail: KFC U.S. is reporting a turnaround with improving same-store sales as it leans into value and nostalgia to regain momentum. Community & Culture: A Juneteenth play, “Before Freedom Rang,” debuts at Kentucky Center, spotlighting Kentucky’s emancipation story.

Transportation Policy: Kentucky lawmakers are pushing back on Gov. Andy Beshear’s gas tax reduction moves, saying the temporary cuts and a July 1 freeze are political and could strain road funding. Energy & Grid Reliability: East Kentucky Power Cooperative broke ground on a $500 million natural gas plant in Casey County—Liberty Station—aimed at boosting reliability during peak demand and outages. Broadband Expansion: Kinetic says it has passed 2 million fiber premises across its 18-state footprint, with the milestone tied to continued construction in the Lexington area. Student Housing Development: Gilbane Development opened a temporary leasing office for UK’s MXWL student housing in Lexington, with the project set to open fall 2027. Public Health Grants: Kentucky’s Animal Control Advisory Board is inviting counties and metro governments to apply for up to $3,000 grants for dog and cat spay/neuter services. Local Safety: Kentucky State Police reported a fatal motorcycle crash near Lexington involving a 61-year-old woman from Faribault, Minnesota. Food Industry Leadership: The FDA named Donald Prater, DVM, as acting deputy commissioner for food, overseeing the Human Foods Program. Fuel Prices Watch: GasBuddy reports show Kentucky midgrade and diesel prices easing in the week ending May 30, with several counties posting single-station lows.

Kentucky Bourbon Industry: Larrikin Bourbon Co. brought home Double Platinum, Platinum and Gold at the ASCOT Awards in Lawrenceburg, a boost as the brand expands into 18 states. Hospitality & Talent: The company also named Susanna Westerfield as Director of Hospitality and Brand Engagement, tapping her Frankfort distillery experience to grow bourbon tourism and consumer experiences. Local Infrastructure & Construction: Elizabethtown drivers should expect a new one-lane roundabout pattern at the KY 251 (Shepherdsville Road) and KY 3005 (Ring Road) intersection starting Monday night, with the signal off during the temporary phase. Data Center Policy (Kentucky): Murray is moving ahead with draft local “guardrails” for data centers after no proposals arrived yet, with a public hearing set for June 9. Energy & Fuel Costs (Kentucky): GasBuddy price reports show spotty but notable lows across the state—like $3.19 E85 in Hopkins County and $3.89 regular in Breckinridge County—while national prices remain volatile amid global shipping and refinery constraints. Civic/Tech Debate: A Kentucky leaders’ commentary argues the state should use past landfill-style local-planning lessons to handle today’s data center controversies.

EV Infrastructure: Gov. Andy Beshear issued a new request for proposals to expand Kentucky’s fast-charging electric vehicle network, with responses due July 13 and selections expected later this summer; the program is funded by nearly $70M in federal money and builds on 12 sites already open plus more under construction. Workforce & Training: Logan County Schools is starting a roughly $10.4M expansion to its Career and Technical Center, adding new diesel and plumbing programs for fall 2027 after board-approved bids. Local Development & Permitting: Grant County’s Planning Commission reviewed map amendments and plats, including a proposal for a truck stop, gas station, and retail/food development tied to Mama Bhanja Holdings. Energy Costs: GasBuddy reported Kentucky’s fuel remains volatile, with Campbell County diesel hitting a low of $5.19/gal (week ending May 30) and Marshall County regular gas as low as $3.89/gal. Recruiting & Manufacturing Talent Pipeline: Kentucky secured linebacker Drew Williams on an official visit, adding to a growing class as the state also pushes workforce training and industrial growth.

Belmont Stakes & Kentucky Racing: Golden Tempo closed strongly to win the 158th Belmont Stakes at Saratoga, with Commandment second—another reminder of how Kentucky’s horse pipeline keeps feeding major national events. Indiana-Kentucky Basketball: The Indiana All-Stars bounced back after Friday’s loss, beating Kentucky 90-71 to split the annual series. Consumer & Retail Costs: Retailers say shoppers are still spending, but gas-price pressure is nudging people toward fewer clothing/furniture trips and more budget-conscious routines. Iowa Politics With Kentucky Ties: Democratic nominee Rob Sand will rally with Kentucky Gov. Andy Beshear’s support as Democrats push to flip Iowa. Energy & Fuel Prices (Kentucky): GasBuddy reports show Kentucky fuel volatility: regular lows like $3.98 in Marion County and diesel lows around $4.89 in Daviess County, while statewide averages ease slightly week over week. Coal Industry Push: The Trump administration is moving nearly $700M into U.S. coal via wartime-era authorities, including funding tied to plants in Kentucky.

Energy & Fuel Costs: GasBuddy data for the week ending May 30 shows Kentucky drivers still seeing volatile prices tied to global oil and refinery disruptions, with standout lows like $3.99 regular in Clinton County, $4.38 regular in Pendleton County, $4.54 premium in Bell County, and diesel lows such as $4.81 in Clark County and $4.89 in Daviess County. Coal & Power Policy: The Trump administration is set to push nearly $700M into U.S. coal, using the Defense Production Act to support existing coal plants and fund an Oakland, California export terminal, plus DOE grants for new builds and a restart near Cumberland, a move critics say deepens environmental risk. Data Centers & AI Backlash: A Utah lawsuit challenges the Stratos AI datacenter plan, arguing the approval process and oversight authority limit public input and local control. Ag Tech: Alltech launched Olerix, a phytogenic feed blend aimed at improving pig growth and feed efficiency, positioning it as a sustainability-leaning efficiency tool for modern pork production. Community & Environment: Kentucky Waterways Alliance is bringing a riverfront cleanup back to Paducah Saturday to protect Ohio River ecology as summer activity ramps up.

Coal Power Push: President Trump is using the Defense Production Act to pour $700M into coal power—extending and modernizing plants, including Kentucky-linked projects—while arguing it will strengthen energy “dominance.” Electricity Costs: New national mapping shows residential power prices rising fast in Kentucky (about +12.7% year over year), with grid and demand pressures tied to broader growth, including data centers. Data Center Watch (Eastern KY): Pikeville signed a preliminary MOU to explore a data center at the Kentucky Enterprise Industrial Park, with a 120-day negotiation window and promises that no land is transferred yet. Local Industry & Logistics: Boone County planning backed an M&P Logistics truck parking expansion in Florence, a sign of continued growth in regional freight capacity. Energy & Jobs (Solar): A solar farm is moving forward in Graves County, adding more renewable generation to the state’s industrial mix. Consumer Impact (UK Sports): The University of Kentucky is cutting concession prices at several on-campus venues starting July 1, after a new partnership with Compass Group. PFAS Policy: Kentucky lawmakers are weighing options in the fight against “forever chemicals,” including interim-session discussions on PFAS limits and monitoring.

Kentucky Agriculture: Four Henry County farms (Gregory Farms, Jericho Farmhouse, Rowlett’s Milkhouse Creamery, Wright Farms) were added to the Kentucky Farm Bureau Certified Farm Market Program, spotlighting local produce and farm-made goods. Policy & Farm Economics: Kentucky lawmakers heard interim updates on agriculture’s strengths and pressure points, including steady cash receipts but worries over working capital, fuel and fertilizer costs, interest rates, and weak grain prices. Energy & Costs: Gas prices stayed volatile statewide in the week ending May 30, with multiple county “lowest” reports from GasBuddy (regular as low as $4.15 in Wayne County; diesel lows like $4.99 in Clinton County). Coal & Power: The Trump administration announced a $700M push to modernize or restart coal-fired plants, and West Virginia’s Mitchell Plant in Marshall County is set to keep operating through 2040 with federal support. Data Centers: Kentucky’s data-center debate continues as other states move on incentives and rules, while national coverage flags the affordability and ratepayer stakes. Roads: A concrete failure triggered a northbound lane closure on I-165 in Ohio County while crews assess repairs.

Coal & Energy Policy: President Trump announced a $700M push to support coal plants and exports, including $425M via the Defense Production Act to “save” 13 coal plants in Kentucky and other states, plus funding for mine and export infrastructure—Kentucky Senate President Robert Stivers called it a boost for reliability and jobs. Data Centers & Power Rates: Louisville’s Metro Council debate continues as the state report says Kentucky is well-positioned for data centers but needs stronger ratepayer protections; UofL also launched a community webinar series as a temporary moratorium was tabled. Medical Cannabis: Gov. Beshear’s latest executive action clarified qualifying medical conditions for Kentucky’s medical cannabis program, with the Kentucky Cannabis Industry Association praising the added certainty for patients and providers. Agriculture Under Pressure: Farm bankruptcies hit a six-year high as fuel, fertilizer, and other input costs squeeze operations, with Kentucky farmers describing it as “death from a thousand cuts.” Fuel Prices Watch: GasBuddy data for the week ending May 30 showed Kentucky regular gas averaging $4.16; notable lows included $3.79 in McCracken County and $3.84 in Butler County. Local Industry & Jobs: Gov. Beshear highlighted multiple recent manufacturing and packaging investments, including a $43M production facility in the region and other site/build approvals aimed at job growth. Bourbon & Enforcement: Madisonville police arrested a man accused of a Facebook bourbon scam, alleging buyers received water and apple juice instead of allocated spirits.

Manufacturing & Jobs: Gov. Beshear kept the momentum going with a wave of Kentucky economic development wins, including E. Hofmann Packaging’s $43M Hopkins County plastics facility (164 jobs), ValorFlex Packaging’s $6.4M Bowling Green HQ move (25 jobs), TrinDocs’ $636K Lexington expansion (20 jobs), Union Coating & Chemical Industries’ nearly $12M Barren County operation (60 jobs), and multiple KPDI site/build grants totaling millions across several counties. Energy & Infrastructure: Kentucky is seeking proposals to expand its EV fast-charging network beyond existing corridors, aiming to reach more urban and rural drivers as federal funding ramps up. Power Policy Watch: A new Kentucky report warns data centers could drive costly grid upgrades unless rules are clear, while the federal government is also moving to boost coal plant funding, with Kentucky among the targeted states. Consumer & Public Safety: Texas opened an investigation into Celsius/Alani Nu over how caffeine levels are marketed to teens, as health concerns and lawsuits continue to swirl. Local Business & Logistics: Madisonville authorities allege a UPS-linked bourbon collectible scam that defrauded victims in multiple states of more than $86,000. Workforce: Kentucky Career Center in Paducah is set to host a job fair June 9 with employers hiring across construction, logistics, retail, and healthcare.

Data Centers & Local Control: Boyd County residents grilled officials over NDAs tied to a proposed TeraWulf data center, while Gov. Andy Beshear reiterated that any project must cover 100% of its own energy costs. Logistics & Jobs: Averitt is set to invest $113 million in a Bullitt County terminal and training campus, adding dozens of jobs. Roads & Infrastructure: Sen. Mike Nemes secured $22M+ for Bullitt County road and utility upgrades, including wastewater and water-line expansions. Construction Safety: Kentucky’s work-zone speed cameras are showing early results, with officials citing about a 20% drop in speeding. Manufacturing & Energy Storage: Ford is reshaping its battery strategy after the SK On venture collapse, repurposing Kentucky battery assets for energy storage using CATL tech. Workforce & Industry Downturn: Whiskey House of Kentucky laid off about 30% of staff in Elizabethtown amid continued bourbon demand softness. Medical Cannabis: Beshear issued an order to clarify qualifying conditions, aiming to expand access where symptoms map to serious underlying diseases. Sports Business: Purdue athletics director Mike Bobinski announced plans to retire at year-end as the school begins a new leadership search.

Kentucky Agriculture Funding: Kentucky lawmakers approved agriculture investments after a strong 2026 session, boosting the Kentucky Department of Agriculture with $20.9M in general fund dollars for FY26 and $22.9M for FY27, plus new support for programs like Raising Hope, Farms to Food Banks, and county fair grants. Swine Research: University of Kentucky researchers won a $650,000 USDA grant to study why modern sows are producing more piglets than their uteruses can support, with the project running through 2030. Medical Cannabis Expansion: Gov. Andy Beshear signed an executive order to clarify and expand Kentucky’s medical marijuana qualifying conditions, adding 15 conditions to the state’s list. Local Food Systems: Barren County Schools nutrition director CheyAnne Fant received the 2026 Kentucky Farm and Food Champion Innovator Award for strengthening ties between local agriculture and school nutrition programs. AI Governance in Kentucky: Lexington-Fayette is rolling out specific rules for how city employees can use AI, including limits on sensitive data and requirements for human review. Infrastructure & Training: Trine University ASCE students brought home multiple awards at the Indiana-Kentucky symposium hosted by UK, highlighting ongoing engineering talent in the region.