AN ACT relating to natural resources.

SB 297 amends Kentucky law to establish procedures for coordinating with neighboring states on underground carbon dioxide storage. It requires Kentucky's cabinet secretary to negotiate agreements with border states covering three key areas: treating accidental CO₂ migration across state lines as non-trespass, creating compensation mechanisms for incidents, and enabling cross-state reservoir development when geologically beneficial. The bill mandates annual reports to the Governor and specific legislative committees on these discussions. This legislation directly affects Kentucky's natural resources cabinet, bordering states, and entities involved in carbon storage projects. (Note: This is a procedural bill focused on inter-state coordination, not a new policy.)