KY HB372

Creates new definitions in Kentucky law for "circular energy facility" and "advanced recovery facility" — industrial facilities that process nonhazardous wastes (municipal, construction, agricultural, coal-related) using water-based acid hydrolysis or non-combustion systems to generate energy, fuels, and advanced materials

Establishes the Circular Economy and Advanced Recovery Advisory Council, a 12-member body appointed by the Governor and chaired by the Division of Waste Management director, required to meet quarterly and submit annual reports to the Legislative Research Commission by December 30

Council responsibilities include examining facility siting impediments, evaluating potential incentives (tax credits, sales tax exemptions, bonding), developing expedited permitting for non-combustible technologies, and creating a pre-approved inventory of brownfield sites, coal waste deposits, and legacy landfills suitable for circular economy projects

Prohibits cities, counties, and solid waste management districts from categorically banning or discriminating against circular energy facilities in local ordinances or solid waste management plans, though local zoning authority and building codes remain in effect

Governor must appoint council members within 30 days of the Act's effective date, with the first meeting required by August 15, 2026