SB 306 requires Kentucky's natural resources cabinet to negotiate agreements with neighboring states about underground carbon dioxide storage. It aims to prevent accidental CO2 leaks across state lines from being treated as trespass, establish compensation for such incidents, and allow shared storage reservoirs where geologically suitable. The bill mandates annual reports to the Governor and legislative committees on these discussions. This directly affects Kentucky and bordering states managing carbon storage projects, focusing on cooperative management rather than new restrictions.
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.
Propose to amend Section 1 of the Constitution of Kentucky to establish a right of the people to have a healthy environment, including a right to clean air, pure water, and ecologically healthy habitats; declare the Commonwealth's natural resources, among them its air, water, flora, fauna, climate, and public lands, the common property of all people, including generations yet to come; establish that as trustee of the environment and its natural resources, the Commonwealth shall conserve and maintain them for the benefit of all people; provide ballot language; submit to voters for ratification or rejection; provide that is Act may be cited as the Legacy Amendment.
Amend KRS 224.50-854 to remove the exemption for a person who stores waste tires for resale from the requirements of the waste tire program; amend KRS 224.50-856 to allow a person making retail sales of used motor vehicles tires to be eligible for the same accumulator registration exemption as sellers of new motor vehicle tires; amend KRS 224.50-858 to require nonexempt sellers of new or used motor vehicle tires to register and be subject to the requirements of the waste tire program.
Create a new section of KRS Chapter 512 to define terms; make criminal atmospheric pollution a Class D felony; require that a person found guilty of criminal atmospheric pollution pay a civil penalty of not less than $500,000 in addition to all other penalties authorized by law; provide that each day that a person engages in criminal atmospheric pollution constitutes a separate offense; empower all peace officers of the Commonwealth to enforce the prohibition on criminal atmospheric pollution; require an arresting officer to issue a notice to any federal agency that approved the action that those activities cannot be lawfully carried out in the Commonwealth.
Create new sections of KRS Chapter 262 to establish the Healthy Soils Program and the Healthy Soils Program fund in the Department for Natural Resources, Division of Conservation; require the department to provide technical advice and assistance and to assist with soil health assessments and soil health plans; require the commissioner to approve applications for grants and other types of financial assistance under the Healthy Soils Program; authorize the department to promulgate administrative regulations to implement the Healthy Soils Program and the Healthy Soils Program fund; amend KRS 146.100 to require the director of the Division of Conservation to have experience in healthy soil practices; amend KRS 224.71-110 to require the Agriculture Water Quality Authority to promote soil restoration and include an organic agriculture organization among appointments to the authority and add healthy soil practices as a committee; amend KRS 262.010 to define "healthy soil practices," "soil health," "soil health assessment," and "watershed health"; amend KRS 262.020 to add restoration, biological diversity, watershed health, and healthy soil practices to the purpose of soil and water conservation districts; amend KRS 262.748 and 262.778 to conform.
Create a new section of KRS Chapter 512 to define terms; make criminal atmospheric pollution a Class D felony; require that a person found guilty of criminal atmospheric pollution pay a civil penalty of not less than $500,000 in addition to all other penalties authorized by law; provide that each day that a person engages in criminal atmospheric pollution constitutes a separate offense; empower all peace officers of the Commonwealth to enforce the prohibition on criminal atmospheric pollution; require an arresting officer to issue a notice to any federal agency that approved the action that those activities cannot be lawfully carried out in the Commonwealth.
Amend KRS 224.50-585 to define terms; prohibit the intentional release of more than 25 plastic balloons; establish a ban on plastic, single-use carryout bags by July 1, 2031; establish a ban on the provision of single-use plastic straws and Styrofoam food and beverage containers by retail food and beverage establishments by July 1, 2029; establish civil penalty of $100 per day for violations.
Direct the Energy and Environment Cabinet's Division of Water to prepare and submit a report to the Legislative Research Commission by December 15, 2026, on recommendations for state and local governments to more easily access public waterways after flooding for debris removal and clean-up.
Create new sections of Subchapter 50 of KRS Chapter 224 to define terms; prohibit the disposal of covered batteries in solid waste disposal or recycling containers; require the Energy and Environment Cabinet to establish the Covered Battery Stewardship Program; provide for the purposes of the program, including fostering the creation of voluntary battery stewardship organizations; provide for the collaboration with stakeholders in establishing the Covered Battery Stewardship Program; require the cabinet to maintain on its website a list of covered battery collection sites and contact information for transporters of covered batteries; establish the registration process and requirements for voluntary battery stewardship organizations; establish minimum requirements for voluntary battery stewardship plans to be submitted to the cabinet for approval; require each voluntary battery stewardship organization to submit an annual report to the cabinet detailing its covered battery collection, recovery, and educational outreach efforts beginning June 30, 2027.
