republic-os/legislation/us/states/ky/2026rs/hb-677.md

---
type: "Bill"
title: "AN ACT relating to energy production and byproduct management."
description: "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."
jurisdiction: "us/states/ky"
legislature: "Kentucky General Assembly"
session: "2026RS"
identifier: "HB 677"
citation: "Kentucky HB 677 (2026RS)"
classification: ["bill"]
subjects: ["Coal", "Energy", "Environment And Conservation", "Fuel", "Minerals And Mining", "Oil And Natural Gas", "Pollution", "Reports Mandated"]
status: "enacted"
primary_sponsors: ["J. Gooch Jr.", "J. Payne", "W. Williams"]
version_count: 3
action_count: 25
vote_count: 3
first_action: "2026-02-19T05:00:00+00:00"
last_action: "2026-04-14T04:00:00+00:00"
source: "openstates"
source_identifier: "ocd-bill/3a6faed0-bae3-49db-ac4a-ef739526da12"
source_url: "https://apps.legislature.ky.gov/record/26RS/hb677.html"
source_hash: "ede3cefbaef5c83f26bb4473cb2d94002d48c4b1da2ec914eccd261cee95ffa3"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ky"]
---

# Kentucky HB 677 (2026RS) — 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.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Introduced** (filed) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb677/orig_bill.pdf)
2. **Acts Chapter 152** (committee substitute) — [source](https://apps.legislature.ky.gov/law/acts/26RS/documents/0152.pdf)
3. **Current/Final** (committee substitute) — [source](https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb677/bill.pdf)

## Votes

- Pass — **98–0** (pass) · lower
- Final Passage — **61–28** (pass) · lower
- PASS HB 677 w/ SCS 1, SFA 1, SCA 1 (T) — **38–0** (pass) · lower

## Sponsors

- J. Gooch Jr. — primary (person)
- J. Payne — primary (person)
- W. Williams — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-02-19T05:00:00+00:00** introduced in House `introduction`
- **2026-02-19T05:00:00+00:00** to Committee on Committees (H) `referral-committee`
- **2026-02-24T05:00:00+00:00** to Natural Resources & Energy (H) `referral-committee`
- **2026-03-05T05:00:00+00:00** reported favorably, 1st reading, to Calendar with Committee Amendment (1) `committee-passage`
- **2026-03-06T05:00:00+00:00** 2nd reading, to Rules `reading-2`
- **2026-03-06T05:00:00+00:00** posted for passage in the Regular Orders of the Day for Monday, March 09 2026
- **2026-03-09T04:00:00+00:00** 3rd reading, passed 98-0 with Committee Amendment (1) `passage, reading-3`
- **2026-03-10T04:00:00+00:00** received in Senate
- **2026-03-10T04:00:00+00:00** to Committee on Committees (S) `referral-committee`
- **2026-03-19T04:00:00+00:00** to Natural Resources & Energy (S) `referral-committee`
- **2026-03-25T04:00:00+00:00** reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title) `committee-passage`
- **2026-03-26T04:00:00+00:00** 2nd reading, to Rules as a consent bill `reading-2`
- **2026-03-27T04:00:00+00:00** floor amendment (1) filed to Committee Substitute `amendment-introduction`
- **2026-03-31T04:00:00+00:00** posted for passage in the Regular Orders of the Day for Tuesday, March 31 2026
- **2026-03-31T04:00:00+00:00** 3rd reading, passed 38-0 with Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title) `passage, reading-3`
- **2026-03-31T04:00:00+00:00** received in House
- **2026-03-31T04:00:00+00:00** to Rules (H) `referral-committee`
- **2026-03-31T04:00:00+00:00** posted for passage for concurrence in Senate Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title)
- **2026-04-01T04:00:00+00:00** House concurred in Committee Substitute (1), Floor Amendment (1) and Committee Amendment (1-title)
- **2026-04-01T04:00:00+00:00** passed 61-28 `passage`
- **2026-04-01T04:00:00+00:00** enrolled, signed by Speaker of the House `passage`
- **2026-04-01T04:00:00+00:00** enrolled, signed by President of the Senate `passage`
- **2026-04-01T04:00:00+00:00** delivered to Governor
- **2026-04-13T04:00:00+00:00** filed without Governor's signature with the Secretary of State
- **2026-04-14T04:00:00+00:00** became law without Governor's Signature (Acts Ch. 152) `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/3a6faed0-bae3-49db-ac4a-ef739526da12`. Confidence: reported (aggregated from official Kentucky legislature records).