HB677 Carbon Sequestration Bill Signed Into Law

ChangeBridge / Kentucky / HB677 Signed by Governor HB677 House Bill Signed by Governor 2026-04-14

AN ACT relating to energy production and byproduct management.

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.

Bill Details

State Kentucky

Session 2026 Regular Session

Chamber House

Official Source apps.legislature.ky.gov/record/26RS/hb677....

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Sponsors

Jim Gooch (Rep - R) J.T. Payne (Rep - R) Wade Williams (Rep - R)

Action History

2026-04-14 H became law without Governor's Signature 2026-04-13 H filed without Governor's signature with the Secretary of State 2026-04-01 H delivered to Governor 2026-04-01 H enrolled, signed by President of the Senate 2026-04-01 H enrolled, signed by Speaker of the House 2026-04-01 H passed 61-28 2026-04-01 H House concurred in Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) 2026-03-31 H posted for passage for concurrence in Senate Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) 2026-03-31 H to Rules (H) 2026-03-31 H received in House 2026-03-31 S 3rd reading, passed 38-0 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) 2026-03-31 S posted for passage in the Regular Orders of the Day for Tuesday, March 31 2026 2026-03-27 S floor amendment (1) filed to Committee Substitute 2026-03-26 S 2nd reading, to Rules as a consent bill 2026-03-25 S reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title) 2026-03-19 S to Natural Resources & Energy (S) 2026-03-10 S to Committee on Committees (S) 2026-03-10 S received in Senate 2026-03-09 H 3rd reading, passed 98-0 with Committee Amendment (1) 2026-03-06 H posted for passage in the Regular Orders of the Day for Monday, March 09 2026 2026-03-06 H 2nd reading, to Rules 2026-03-05 H reported favorably, 1st reading, to Calendar with Committee Amendment (1) 2026-02-24 H to Natural Resources & Energy (H) 2026-02-19 H to Committee on Committees (H) 2026-02-19 H introduced in House

Votes

2026-03-09 House: Veto Override RCS# 215 Yea: 98 Nay: 0 2026-03-31 Senate: Third Reading RSN# 4089 Yea: 38 Nay: 0 2026-04-01 House: Veto Override RCS# 445 Yea: 61 Nay: 28

Committee Referrals

2026-02-19 H Committee On Committees 2026-02-24 H Natural Resources & Energy 2026-03-06 H Rules 2026-03-10 S Committee on Committees 2026-03-19 S Natural Resources and Energy 2026-03-26 S Rules 2026-03-31 H Rules

Amendments

0000-00-00 House Committee Amendment 0000-00-00 Senate Committee Substitute 0000-00-00 Senate Committee Amendment 0000-00-00 Senate Floor Amendment

Bill Text Versions

0000-00-00 Introduced 0000-00-00 Engrossed 0000-00-00 Enrolled

Subjects

Coal Energy Environment and Conservation Fuel Minerals and Mining Oil and Natural Gas Pollution Reports Mandated Legislative data powered by LegiScan (CC BY 4.0)