Established in 1990, the  Kentucky Heritage Land Conservation Fund (KHLCF) is the primary source of state funding for the purchase and management of natural areas.  It is used to purchase land from willing sellers for nature preserves, state parks, state forests, wildlife management areas, environmental education areas, wild rivers and wetlands. The KHLCF Board protects each site in perpetuity with a conservation easement or deed restriction. Legislation established four priorities for land conservation:

• Areas that are a habitat for rare and endangered species.
  
• Areas important to migratory birds.
  
• Areas that perform important natural functions that are subject to alteration or loss.
  
• Areas to be preserved in their natural state for public use, outdoor recreation and education.
  

Revenue for the fund primarily comes from the sale of Kentucky nature license plates, unmined minerals tax on coal, and environmental fines. The Kentucky Environmental Education Council receives the first $150,000 of environmental fines each year for environmental education programs.