HB 677 KY Became Law
AN ACT relating to energy production and byproduct management.
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Summary
Create new sections of KRS Chapter 353 to establish the purposes of the Act; define terms; require and specify the types of permits before constructing or operating a carbon dioxide facility; exempt enhanced oil or gas recovery under KRS 353.592; require any oil, natural gas or coalbed methane well converted to a carbon dioxide sequestration well to be governed by this Act; set forth the requirements and process to obtain a Class VI underground injection control permit; require permit fees to be put in the carbon dioxide sequestration facility administrative fund; set forth a process for commercially valuable minerals; designate the consent of owners of pore space for a administratively complete application; specify when the Energy and Environment Cabinet can begin technical review of the application; require financial responsibility sufficient to cover specific activities and cabinet review of financial responsibility annually; provide that the cabinet's determination is considered final; allow for the adjustment of financial responsibility based on adjustments in cost estimates; list the type of financial instruments which can be used as qualifying financial responsibility instruments; authorize the cabinet to promulgate administrative regulations for financial responsibility; identify reasons why the cabinet would deny an application for a permit; authorize the cabinet to restore applicant eligibility for permit under specific grounds and circumstances; require cabinet approval for a transfer of a permit and allow obligations and rights to pass to the new transferee; require periodic review of permits; prescribe the notice and comment requirements for a Class VI permit; delineate the cabinet's actions for applications that are complete and incomplete; prohibit the approval or transfer of a permit to an operator for conditions specified and allow eligibility after an applicant, operator, or control person takes certain remedial actions; establish requirements to maintain the integrity of carbon sequestration wells and notification of affected parties when activities occur on the well site; provide mechanism of redress for parties that are not in agreement over activities on the well site; specify the requirements for plugging and abandoning a Class VI well or monitoring well; authorize the secretary of the Energy and Environment Cabinet to enter into cooperative agreements; specify the requirements for a completion certificate issued by the Energy and Environment Cabinet after demonstrating compliance for 50 years or another time frame designated by the cabinet along with notice and public hearing; require ownership transferred to the Commonwealth and that both pore and surface owners are held harmless from liability; establish a carbon dioxide sequestration facility administrative fund and specify the moneys to be placed into the fund and the purposes and uses of the fund; establish an application fee to be paid to the carbon dioxide sequestration facility administrative fund and authorize the cabinet to promulgate administrative regulations for a fee schedule; establish a carbon dioxide sequestration facility trust fund and specify the purposes and use of moneys in the fund; require sequestration operators to pay a fee on each ton of carbon dioxide sequestered and have the fees remitted to the carbon dioxide sequestration facility trust fund; require the cabinet to prepare an annual report on the Class VI underground injection control permit and the carbon dioxide sequestration facility trust fund; state that the report is due December 31 of each year beginning with the receipt of the first application for an underground injection control permit; require the Energy and Environment Cabinet to certify the amount of carbon dioxide sequestered by each permittee and allow amounts sequestered to be used for a carbon dioxide credits, allowances, trading, emissions allocations, or offsets; prohibit the altering of legal rights or relationships of several mineral estates and pore space owners in common law; specify methods for nonconsenting owners; allow for the cabinet to make a determination on missing or nonconsenting pore space owners for a sequestration facility and notice for a pooling order; require the applicant to pay the cost of administrative hearing with a pooling order; establish notice for a pooling order and the compensation of owners; establish requirements for seismic survey of lands; require operator to deposit funds for unknown or missing pore space owners and allow funds to be moved to the carbon dioxide sequestration facility trust fund after 7 years; create a severability clause; establish violations and penalties; require notice and service for violations and establish courts with jurisdiction and a requirement for a stay of notice and administrative hearing; authorize the cabinet to promulgate administrative regulations to develop regulatory program for the administration of the underground injection control program; repeal KRS 353.800, 353.802, 353.804, 353.806, 353.808, 353.810, and 353.812, relating to geologic storage of carbon dioxide.
Sponsors (3)
- J. Gooch Jr. Republican · primary
- J. Payne Republican · primary
- W. Williams Republican · primary
Action history (25)
- Feb 19, 2026 introduced in House · lower
- Feb 19, 2026 to Committee on Committees (H) · lower
- Feb 24, 2026 to Natural Resources & Energy (H) · lower
- Mar 5, 2026 reported favorably, 1st reading, to Calendar with Committee Amendment (1) · lower
- Mar 6, 2026 2nd reading, to Rules · lower
- Mar 6, 2026 posted for passage in the Regular Orders of the Day for Monday, March 09 2026 · lower
- Mar 9, 2026 3rd reading, passed 98-0 with Committee Amendment (1) · lower
- Mar 10, 2026 received in Senate · upper
- Mar 10, 2026 to Committee on Committees (S) · upper
- Mar 19, 2026 to Natural Resources & Energy (S) · upper
- Mar 25, 2026 reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title) · lower
- Mar 26, 2026 2nd reading, to Rules as a consent bill · lower
- Mar 27, 2026 floor amendment (1) filed to Committee Substitute · lower
- Mar 31, 2026 posted for passage in the Regular Orders of the Day for Tuesday, March 31 2026 · lower
- Mar 31, 2026 3rd reading, passed 38-0 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) · lower
- Mar 31, 2026 received in House · lower
- Mar 31, 2026 to Rules (H) · lower
- Mar 31, 2026 posted for passage for concurrence in Senate Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) · lower
- Apr 1, 2026 House concurred in Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) · lower
- Apr 1, 2026 passed 61-28 · lower
- Apr 1, 2026 enrolled, signed by Speaker of the House · lower
- Apr 1, 2026 enrolled, signed by President of the Senate · upper
- Apr 1, 2026 delivered to Governor · lower
- Apr 13, 2026 filed without Governor's signature with the Secretary of State · lower
- Apr 14, 2026 became law without Governor's Signature (Acts Ch. 152) · lower
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