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--- version:Acts Chapter 152+++ version:(document, no version)@@ -1,1267 +1,22 @@-CHAPTER 152-Legislative Research Commission PDF Version+SENATE-1-CHAPTER 152-( HB 677 )-AN ACT relating to energy production and byproduct management.-Be it enacted by the General Assembly of the Commonwealth of Kentucky:-SECTION 1. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-The purposes of Sections 1 to 24 of this Act are to:-(1) Establish a legal and regulatory framework for the development and approval of underground carbon-dioxide sequestration facilities;-(2) Designate a governme nt agency responsible for establishing standards and promulgating administrative-regulations for the development and approval of underground carbon dioxide sequestration and-sequestration facilities;-(3) Safeguard and protect the correlative rights of oper ators, mineral owners, pore space owners, and surface-owners and provide for just and reasonable compensation for their respective interests in underground-carbon dioxide sequestration facilities; and-(4) Ensure that long -term geologic sequestration of car bon dioxide in the Commonwealth is accomplished-without unreasonable disturbance of surface, mineral, or water resources or endangering public safety.-SECTION 2. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-As used in Sections 1 to 24 of this Act:-(1) "Administratively complete," with respect to an application means an application for permit approval that-the cabinet determines contains:-(a) Information addressing each application requirement of the regulatory program; and-(b) All information necessary to initiate technical processing and public review;-(2) "Cabinet" means the Energy and Environment Cabinet;-(3) "Carbon dioxide" means anthropogenic carbon dioxide of sufficient purity and quality as to not-compromise:-(a) The safety of geologic sequestration; and-(b) Those properties of the sequestration reservoir which allow the reservoir to effectively enclose and-contain a stored gas;-(4) "Carbon dioxide sequestration" means the injection of carbon dioxide and associated constituents into-subsurface geologic reservoirs intended to provide for the long -term containment of a gaseous, liquid, or-supercritical carbon dioxide stream in subsurface geologic formations and thereby prevent its release into-the atmosphere;-(5) "Class II well" has the same meaning as in KRS 353.510;-(6) "Class VI injection well" or "Class VI well" means the classification by the US EPA of wells for injection-of substances or materials into subsurface rock formations and, specifically, to the class of wells that are-used to inject carbon dioxide into subsurface rock formations;-(7) "Class VI underground injection control permit" or "Class VI permit" means a permit for a specified site-authorizing a person or business entity to construct and operate a carbon dioxide sequestration facility-issued by the:-(a) US EPA prior to granting the cabinet primary enforcement authority; or-(b) Cabinet after primary enforcement authority is granted by the US EPA;-(8) "Completion certificate" means a Certificate of Undergrou nd Carbon Dioxide Sequestration Project-Completion;-ACTS OF THE GENERAL ASSEMBLY 2-(9) "Control person" has the same meaning as in KRS 353.510;-(10) "Drilling permit" means a permit issued by the cabinet to drill a well or convert an existing well for the-purposes of constructing a Class VI underground injection control facility;-(11) "Gas well" has the same meaning as in KRS 353.010;-(12) "Monitoring well" means a well authorized under a Class VI underground injection control permit that is-designed and completed in a specified subsurfa ce interval to monitor pressure, fluid chemistry, or other-parameters to confirm containment of injected carbon dioxide within the sequestration reservoir and-confining system and to demonstrate non-endangerment of underground sources of drinking water;-(13) "Oil well" has the same meaning as in KRS 353.010;-(14) "Person" has the same meaning as in KRS 353.510;-(15) "Pore space" means a cavity or void, whether naturally or artificially created, in subsurface stratum-beneath individual properties within a reservoir into which injection of carbon dioxide is proposed;-(16) "Reservoir" means a subsurface stratum, formation, cavity, or void, whether naturally or artificially-created, including oil and gas reservoirs, saline formation, and coal seams suitable for , or capable of being-made suitable for, the injection and storage of carbon dioxide;-(17) "Secretary" means the secretary of the Energy and Environment Cabinet;-(18) "Sequestration facility" means the reservoir, well, underground equipment, and surface fa cilities and-equipment used or proposed to be used in a carbon dioxide sequestration project, but does not include-pipelines used to transport carbon dioxide to the sequestration facility;-(19) "Sequestration operator" means a person applying for or holdin g a Class VI permit until the issuance of a-completion certificate for the relevant sequestration facility;-(20) "Sequestration reservoir" means a reservoir proposed, authorized, and used for storing carbon dioxide;-(21) "Surface waters":-(a) Means:-1. Those waters having well-defined banks and beds, either constantly or intermittently flowing;-2. Lakes and impounded waters;-3. Marshes and wetlands; and-4. Any subterranean waters flowing in well -defined channels and having a demonstrable-hydrologic connection with the surface; and-(b) Does not include lagoons used for waste treatment and effluent ditches that are situated on property-owned, leased, or under valid easement by a permitted discharger;-(22) "Third party" means a party who is independent of the corporate structure of a sequestration operator;-(23) "Underground source of drinking water" or "USDW" has the same meaning as in 40 C.F.R. sec. 144.3;-(24) "Unknown or missing owner" means a person vested with a present ownership interest in the pore space-whose present identity or location cannot be determined from:-(a) A reasonable review of county clerk records for the county or counties in which the property is-located, and includes unknown heirs, successors, and assigns known to be alive;-(b) A reasonable inquiry in the county of the owner's last known place of residence;-(c) A diligent inquiry into known interest owners in the same tract; and-(d) A reasonable review of available internet resources commonly utilized by the industry; and-(25) "US EPA" means the United States Environmental Protection Agency.-SECTION 3. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) A person shall not construct or operate a carbon dioxide sequestration facility without first securing a:-(a) Class VI underground injection control permit from the US EPA or the cabinet; and-CHAPTER 152-Legislative Research Commission PDF Version+KENTUCKY GENERAL ASSEMBLY AMENDMENT FORM-3-(b) Drilling permit issued by the cabinet.-(2) The injection of carbon dioxide for purposes of enhancing the recovery of oil or natural gas pursuant to a-permit approved by the cabinet under KRS 353.592 shall not be subject to the provisions of Sections 1 to 24-of this Act.-(3) If an oil, natural gas, or coalbed methane well operator proposes to convert its operations to carbon dioxide-sequestration, then the underground carb on dioxide sequestration facility shall be regulated pursuant to-Sections 1 to 24 of this Act.-SECTION 4. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) Every Class VI underground injection control permit application filed under thi s section shall:-(a) Be on a form prescribed by the cabinet;-(b) Be certified by the applicant; and-(c) Contain all information specified by administrative regulations promulgated by the cabinet in-accordance with KRS Chapter 13A.-(2) (a) Upon filing an application for a Class VI permit, an applicant shall:-1. Pay a fee in an amount set by the cabinet; and-2. Submit proof of public notice of the application pursuant to Section 5 of this Act.-(b) The fee shall be deposited into the carbon dioxide sequestrat ion facility administrative fund-established in Section 14 of this Act.-(3) In addition to obtaining a Class VI underground injection control permit, the applicant shall secure drilling-permits from the cabinet for each well described in the approved Class VI permit.-(4) If, prior to approval of an application, the cabinet determines that the proposed sequestration facility-contains commercially valuable minerals, the cabinet shall ensure that the interests of the mineral owners-or mineral lessees:-(a) Will not be adversely affected; or-(b) Have been addressed in a written agreement entered into by the mineral owners, mineral lessees, and-the sequestration operator pursuant to Section 10 of this Act.-(5) To be considered an administratively complete application, a Class VI permit application shall include-documentation that:-(a) The sequestration operator has the written consent of those persons having ownership interests in at-least seventy-five percent (75%) of the proposed sequestration reservoir's pore space acreage; and-(b) A pooling order has been requested pursuant to Section 20 of this Act for up to twenty -five percent-(25%) of the proposed sequestration reservoir's pore space acreage for nonconsenting, unknown,-and missing pore space owners.-(6) The cabinet shall not begin technical review of an administratively complete application until the-sequestration operator has:-(a) Demonstrated that it possesses through the requisite consent and the petition for a pooling orde r in-accordance with Section 20 of this Act, the legal right to utilize one hundred percent (100%) of the-pore space acreage of the proposed sequestration reservoir; and-(b) Provided documentation demonstrating the legal right to enter onto and conduct all surface activities-and operations associated with the proposed sequestration facility.-(7) If the cabinet determines that a bona fide dispute exists regarding the applicant's legal right, consistent with-subsections (5) and (6) of this section, to utilize any of the pore space acreage of the proposed sequestration-reservoir, the cabinet shall:-(a) Suspend technical permit review pending resolution of the property dispute by a court of competent-jurisdiction or resolution by the parties; or-(b) Require the applicant to revise the permit application to exclude the contested pore space acreage.-ACTS OF THE GENERAL ASSEMBLY 4-(8) A Class VI permit shall not be issued under this section unless the cabinet finds that:-(a) The application and proposed operations comply with all requirements est ablished by the cabinet,-including any applicable Class VI underground injection control administrative regulations, and all-applicable provisions of state and federal law;-(b) The sequestration facility is suitable and feasible for carbon dioxide injectio n and sequestration;-(c) The sequestration operator has made a good -faith effort to obtain the written consent of all persons-who own the sequestration reservoir's pore space;-(d) The applicant has demonstrated the legal right to utilize one hundred percen t (100%) of the-sequestration reservoir's pore space acreage;-(e) The application contains documentation sufficient to demonstrate the legal right to enter onto and-conduct all surface activities and operations associated with the proposed sequestration fa cility;-(f) The proposed sequestration facility will not endanger surface waters or any USDW;-(g) The creation, operation, and maintenance of the sequestration facility will not appreciably endanger-human health or the environment;-(h) Adequate horizontal and vertical boundaries of the sequestration reservoir are defined, including-buffer areas, to ensure that the sequestration facility is operated safely and prudently;-(i) The sequestration operator will establish monitoring facilities and protocols to ass ess the location-and migration of carbon dioxide injected for sequestration and to ensure compliance with all Class-VI permit, statutory, and administrative regulation requirements;-(j) All nonconsenting pore space owners are or will be justly and reasonab ly compensated in accordance-with the administrative regulations and procedures set forth in and promulgated under this section-by the cabinet; and-(k) The sequestration operator demonstrates financial responsibility as determined by the cabinet-pursuant to subsections (10) and (11) of this section and applicable administrative regulations.-(9) The cabinet shall render a decision on a permit application in accordance with Section 6 of this Act.-(10) (a) A permit shall not be issued under this section unless the sequestration operator posts qualifying-financial responsibility sufficient to cover the cost of:-1. Corrective action;-2. Well plugging of Class VI injection wells and monitoring wells;-3. Post-injection site care and facility closure;-4. Emergency and remedial response; and-5. Addressing endangerment of underground sources of drinking water.- (b) The financial responsibility instruments shall contain protective conditions for coverage for-cancellation, renewal, and continuation provisions. The sequestration operator shall have detailed-written estimates, in current dollars, of the cost of performing the activities contained in paragraph-(a)1. to 5. of this subsection. The cost estimates shall be separate for each phase and shall be based-on the costs of the cabinet to hire third parties to perform the required activity.- (c) For the duration of the permit, the sequestration operator shall annually adjust the cost estimates of-each activity and provide the information to the cabinet. Any decr ease or increase in the initial cost-estimate shall be subject to the cabinet's approval. If at any time the current cost estimate:-1. Increases to an amount greater than the face amount of the financial responsibility-instruments currently in use, the sequestration operator shall submit to the cabinet within sixty-(60) days, written evidence of an increase of the face amount of the existing financial-responsibility instruments or substitute another instrument in the increased amount; or-2. Decreases to an amount lesser than the face amount of the financial responsibility-instruments, those instruments may be reduced to the amount of the current estimate upon-receipt of written approval from the cabinet.-CHAPTER 152-Legislative Research Commission PDF Version+2026 REGULAR SESSION-5- (d) The cabinet shall perform an annual evaluation o f the qualifying financial responsibility to-determine if the amount of financial responsibility provided by the sequestration operator is-sufficient to secure the operator's obligations under state and federal law. A cabinet determination-under this subse ction is considered final. If the cabinet determines the amount of financial-responsibility is insufficient, the sequestration operator shall:-1. Provide an adjustment of the cost estimate to the cabinet within sixty (60) days of notification-by the cabinet; and-2. Adjust the financial responsibility instruments in accordance with paragraph (c) of this-subsection.- (e) The initial deposit, use, and length of pay -in periods for trust funds or escrow accounts are subject to-the cabinet's approval. The seque stration operator may make periodic deposits into a trust fund or-escrow account throughout the operational period to ensure sufficient funds are available to carry-out the required activities on the date on which they may occur. The cabinet shall consider project--specific risk assessments, projected timing of activities, and interest accumulation in determining-whether sufficient funds are available to conduct the required activities.-(11) (a) In demonstrating and maintaining financial responsibility as determined by the cabinet, the-sequestration operator shall provide financial responsibility from the following list of qualifying-instruments:-1. Trust funds;-2. Surety or cash bonds;-3. Letters of credit;-4. Insurance;-5. Self-insurance; or-6. Any other instrument the cabinet finds satisfactory.-(b) The cabinet may promulgate administrative regulations in accordance with KRS Chapter 13A to-allow self -insurance as a financial responsibility mechanism for some or all of the costs and-obligations of the sequestration operator under terms and conditions as the cabinet deems necessary-to ensure completion of all obligations of the Class VI permit. To account for the risks of default and-resulting responsibility obligations incurred by the carb on dioxide sequestration facility trust fund-established in Section 16 of this Act, the cabinet's terms and conditions may include:-1. Corporate guarantees;-2. Securing performance by lien or collateral; and-3. Adjustments in assessed contributions by the sequestration operator to the carbon dioxide-sequestration facility trust fund established in Section 16 of this Act.-(c) All qualifying financial instruments are subject to the cabinet's approval.-(12) (a) The cabinet shall not issue a permit under this section or approve an application to transfer a-sequestration facility to a successor operator pursuant to subsection (13) of this section, and an-operator shall not be eligible to receive any permits or become a successor operator under this-section if:-1. The applicant has falsified or otherwise misrepresented any information on or relating to the-permit application;-2. The applicant has failed to abate or reach an agreement with the cabinet regarding an-unappealed violation of Sections 1 to 24 of this Act or the administrative regulations-promulgated thereunder;-3. A control person of the applicant has a forfeiture of a financial responsibility instrument;-4. The applicant is a control person for another operator that has a forfeiture of a financia l-responsibility instrument;-ACTS OF THE GENERAL ASSEMBLY 6-5. A control person for the applicant served as a control person for another operator when an-unresolved financial responsibility instrument forfeiture occurred;-6. The applicant is or has a control person who controls or is co ntrolled by another operator that-has a forfeiture of a bond; or-7. The cabinet determines that an activity of the applicant is currently in violation of KRS-Chapter 149, 151, 224, 349, 350, 351, 352, or 353 or any administrative regulation-promulgated thereunder.-(b) The cabinet:-1. May restore the eligibility of applicants, operators, and control persons who are deemed-permit-ineligible pursuant to paragraph (a)1. of this subsection upon resubmission of the-application correcting the false or misrepresented information;-2. Shall restore the eligibility of applicants, operators, or control persons who are deemed permit --ineligible pursuant to paragraph (a)2. of this subsection upon satisfactory abatement of the-violation and payment of any civil penalties;-3. Shall restore the eligibility of applicants, operators, or control persons who are deemed permit --ineligible pursuant to paragraph (a)3. to 6. of this subsection upon entry of and satisfactory-compliance with an agreed order between the operator and the cabinet that resolves all the-operator's outstanding violations, requires payment of any civil penalties, and provides-restitution to the cabinet for any costs associated with the forfeiture, plugging, and proper-abandonment of a well in excess of the fina ncial responsibility instruments forfeited to the-cabinet by the operator; and-4. a. Shall provisionally restore the eligibility of applicants who are deemed permit -ineligible-pursuant to paragraph (a)7. of this subsection upon either submittal of proof th at the-violation is in the process of being corrected to the satisfaction of the cabinet or a-demonstration that the applicant has filed and is pursuing a good -faith administrative-or judicial appeal to contest the violation. If the Circuit Court affirms the violation, then-the applicant shall, within thirty (30) days of the judicial action, submit proof that the-violation is in the process of being corrected to the satisfaction of the cabinet.-Provisional restoration of permit eligibility related to paragr aph (a)7. of this subsection-may be withdrawn at any time if the cabinet determines that the applicant no longer-satisfies the requirements of this section.-b. The cabinet shall fully restore the eligibility of applicants who are deemed permit --ineligible pursuant to paragraph (a)7. of this subsection upon either submittal of proof-that the violation has been corrected to the satisfaction of the cabinet or that the-violations have been ordered vacated in a final decision of the secretary or a reviewing-court after all appeals have been exhausted.-(13) A permit issued pursuant to this section shall not be transferred by sale, assignment, lease, or otherwise,-except upon the written approval by the cabinet of a joint application submitted by both the transfero r and-the transferee. The joint application for transfer shall be on a form prescribed by the cabinet and-accompanied by a fee in an amount set by the cabinet. Fees under this subsection shall be deposited in the-carbon dioxide sequestration facility admin istrative fund established in Section 14 of this Act. The-transferee shall file financial responsibility with the application in an amount and form that the cabinet-deems satisfactory to cover the costs of the activities listed in subsection (10)(a) of thi s section. All rights-and liabilities under the permit shall pass to the transferee upon written approval of the transfer by the-cabinet.-(14) The cabinet shall conduct periodic reviews of each permit issued pursuant to this section. The cabinet shall-review each permit at least once every five (5) years from the date of the permit issuance and whenever the-cabinet has reason to believe, based on available information, that the permit may no longer be in-compliance with Sections 1 to 24 of this Act. During permit review, the cabinet shall review all provisions of-the existing permit, including the adequacy of the financial responsibility required by this section. The-cabinet may, by determination issued to the permit holder, require revision or modification of the permit-provisions, including requiring the posting of additional financial responsibility, in order to ensure-compliance with this section.-CHAPTER 152-Legislative Research Commission PDF Version+Amend printed copy of HB 677/GA+TITLE AMENDMENT-7-SECTION 5. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) Public notice of an applica tion for a Class VI well permit under Sections 1 to 24 of this Act shall allow at-least thirty (30) days for public comment.-(2) The cabinet shall send the public notice to the applicant, who shall be responsible for publication of the-notice pursuant to KRS Chapter 424 within thirty (30) days prior to the submission of an application. Upon-publication, the applicant shall send the cabinet a copy of the certificate of publication. The cost of-publication shall be borne by the applicant.-(3) Notice of an app lication for a Class VI well permit shall be served on each mineral lessee, mineral owner,-and pore space owner with a legal interest in the property or properties that involves the sequestration-reservoir, and adjoining surface and mineral owners of record.-(4) Service of individual notices required by this section shall be through personal service, by registered mail,-or by any method of delivery that requires a receipt or signature confirmation.-(5) Service of any unknown or missing owners shall be deemed to have occurred, provided that the-sequestration operator has complied with this section and Section 20 of this Act.-(6) The cabinet may hold a public hearing at its discretion if a hearing may assist in clarifying one (1) or more-issues involved in the Class VI well permit decision. If a public hearing is held, notice of the hearing shall-be provided in the same manner as set forth in subsection (2) of this section.-SECTION 6. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) Within sixty (60) calendar days of receiving an application for a Class VI underground injection control-well, the cabinet shall provide written notice to the applicant as to the administrative completeness of the-application. If the application is determined to be administratively:-(a) Complete, the cabinet shall notify the applicant in writing that the technical review period provided-by subsection (2) of this section has begun; or-(b) Incomplete, the cabinet shall notify the applicant of the deficiencies that render it administratively-incomplete. The applicant shall have thirty (30) calendar days from receiving the cabinet's notice of-deficiency to correct the deficiencies and render the application administratively complete.-(2) (a) Technical review of an application shall begin when the cabinet has deemed the application-administratively complete and ready for review. The cabinet shall issue a final determination to-either approve or deny the application within three hundred sixty -five (365) calendar days from the-date an administrative completeness determination has been made by the cabinet.-(b) If the application is found deficient during technical review, the cabinet shall notify the applicant in-writing of the deficiencies identified by t he cabinet during the review. The applicant shall respond to-the deficiencies with information that addresses the identified deficiencies.-(3) An application shall be considered temporarily withdrawn when an applicant is correcting deficiencies-noted by the cabinet pursuant to subsection (1)(b) or (2)(b) of this section. Periods of temporary withdrawal-shall not be counted against the review period allotted to the cabinet for administrative or technical review.-Upon resubmittal the review period allotted to the cabinet shall resume.-SECTION 7. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) The cabinet shall include in any Class VI underground injection control permit or order all provisions-necessary to:-(a) Carry out the objectives of Sections 1 to 24 of this Act;-(b) Protect and adjust the respective rights and obligations of persons affected by a carbon dioxide-sequestration facility; and-(c) Protect public health, safety, and the environment.-(2) The cabinet shall require that a co py of any Class VI permit issued and a land survey of the permitted-sequestration reservoir indicating impacted surface, pore space and mineral owners and mineral lessees be-filed with the county clerk in the county or counties where the carbon dioxide seq uestration facility is-located. Any amendments or modifications to the Class VI permit or land survey shall also be filed.-ACTS OF THE GENERAL ASSEMBLY 8-SECTION 8. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) A person shall not drill, deepen, reopen, or conver t a well for the purposes of developing a Class VI-underground injection control well without first securing drilling permits from the cabinet.-(2) To both protect and prevent endangerment of underground sources of drinking water, the cabinet shall-promulgate administrative regulations in accordance with KRS Chapter 13A regarding the drilling, casing,-and construction of the wells. The cabinet shall prescribe the use of materials that are compatible and can-withstand contact with carbon dioxide over the li fe of the sequestration project, including the project's-conversion, maintenance, and abandonment of wells.-SECTION 9. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) For the purposes of Sections 1 to 24 of this Act and in all other respects, any carbon dioxide injected and-sequestered in accordance with a Class VI underground injection control permit issued by the cabinet and-in compliance with Sections 1 to 24 of this Act and the cabinet's administrative regulations shall not be-considered a pollutant, and the operation and existence of such a carbon dioxide sequestration facility shall-not be considered a public nuisance.-(2) The cabinet's authority under Sections 1 to 24 of this Act shall not otherwise limit the authority or-jurisdiction of the cabinet in any manner under any other state or federal law.-SECTION 10. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-The provisions of this section shall apply to activities occurring within or proposed to occur within a sequestration-reservoir:-(1) Nothing contained in Sections 1 to 24 of this Act prohibits the mineral owner or lessee or the pore space-owner or lessee from exploring, developing, or producing oil, gas, or other minerals above or below a-sequestration rese rvoir or from using other strata or formations for carbon dioxide sequestration. Wells-penetrating sequestration reservoirs shall protect their integrity and prevent carbon dioxide release. Wells-penetrating oil and gas formations shall protect their integrity and prevent contamination or damage;-(2) Before drilling, deepening, reopening, converting, or plugging wells drilled pursuant to KRS Chapters 349-and 353 on any property with a permitted sequestration reservoir, the oil and gas operator shall, at the time-of filing with the cabinet, forward a copy of the application to the sequestration operator via registered or-certified mail or by personal service;-(3) When the cabinet receives a permit application for a well within a sequestration reservoir or buf fer zone,-the cabinet shall notify both the oil and gas operator and sequestration operator by registered or certified-mail or by personal service;-(4) Before drilling, deepening, reopening, converting, or plugging a Class VI injection well or monitoring well-on a property where oil, gas, or other minerals are owned by a person other than the sequestration operator,-the sequestration operator shall, at the time of filing, forward a copy of the application and plat to the oil,-gas, or other mineral owner via registered or certified mail or by personal service;-(5) The sequestration operator shall:-(a) Notify the oil, gas, or other mineral operator when sequestration rights are acquired on property-with:-1. An oil or gas lease or oil and gas operations; or-2. A coal or noncoal lease, or coal or noncoal operations pursuant to KRS Chapter 350; and-(b) Ensure that notice of future applications to drill Class VI injection wells or monitoring wells are sent-to the oil, gas, coal, or other mineral lessee and operator, if any;-(6) Upon receiving an application to drill, deepen, convert, reopen, complete, or plug an oil or gas well or a-Class VI injection or monitoring well, the cabinet shall hold the application for fifteen (15) days to allow-non-applicant operators to file objections. If objections are filed, the objecting non -applicant operator shall-serve the objections on the applicant operator. The cabinet shall schedule a hearing, pursuant to subsection-(6) of Section 5 of this Act, within ten (10) days of receiving the objection. If, during or before the hearing,-the parties reach an agreement regarding the objections, changes to the drilling plan in accordance with the-agreement shall be submitted by the appli cant operator in an amended application. If an agreement is not-reached, the cabinet, after considering the objections and the evidence presented at the hearing, shall enter-CHAPTER 152-Legislative Research Commission PDF Version+Amendment No. TITLE Rep. Sen. Robby Mills-9-an order and issue a permit to drill with modifications to protect the rights and resources of the parties-involved;-(7) If the oil and gas operator and the sequestration operator disagree on the drilling, deepening, reopening,-completing, or plugging of an oil or gas well or a Class VI or monitoring well, the cabinet shall:-(a) Determine how the costs above those normally incurred in the drilling, completion, or plugging of-the well will be allocated to the applicant operator and non-applicant operator; and-(b) Specify the payment terms;-(8) Upon receipt of notice of an application to d rill, deepen, reopen, complete, or plug an oil or gas well or a-Class VI or monitoring well, a non -applicant operator may waive his or her objection and specify whether-the waiver applies to one (1) or more wells, a group of wells, or specific areas. The w aiver shall be made by-letter or by telephone with written confirmation. If the waiver is filed and the cabinet determines that the-application is otherwise complete and the public interest is served, the permit shall be issued; and-(9) (a) Before plugging and abandoning an oil or gas well that penetrates a sequestration reservoir or a-Class VI or monitoring well that penetrates an oil or gas formation:-1. The operator proposing to plug and abandon the well shall notify the other non -plugging-operator and t he cabinet of the operator's intention to plug and abandon the well and shall-state the date and time when the plugging will occur;-2. Notice shall be sufficient to reasonably allow the non -plugging operator to attend and view the-plugging of the well. The operator may proceed with plugging the well if, after notice, the non --plugging operator does not attend; and-3. The operator shall:-a. Seek and receive the approval of the cabinet; and-b. Allow a cabinet representative to be present at the well plugging.-(b) Plugging shall not occur except pursuant to the approval of the cabinet and with a cabinet-representative present at the plugging.-SECTION 11. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-The secretary may enter into cooperative agreements with corresponding officials in other state governments or-governmental agencies for the purpose of regulating carbon dioxide sequestration projects that extend beyond-state regulatory authority under Sections 1 to 24 of this Act.-SECTION 12. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-The sequestration operator shall be the owner of the carbon dioxide injected into and stored in a sequestration-reservoir approved under Sections 1 to 24 of this Act and shall maintain owner ship and control until the cabinet-issues a completion certificate. While the sequestration operator has ownership, the sequestration operator is-liable for any damage the carbon dioxide may cause, including damage caused by carbon dioxide that escapes-from the sequestration facility.-SECTION 13. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) The cabinet may issue a completion certificate upon application by the sequestration operator-demonstrating compliance with Sections 1 to 24 of this Act at one (1) of the following times:-(a) Fifty (50) years after carbon dioxide injections into a reservoir end; or-(b) At any other time frame established on a site -specific basis by administrative regulations-promulgated pursuant to KRS Chapter 13 A regarding the time frame for a sequestration operator's-post-injection site care and site closure plan.-(2) The completion certificate shall only be issued:-(a) After public notice and hearing; and-(b) If the sequestration operator demonstrates that:-ACTS OF THE GENERAL ASSEMBLY 10-1. The operator is in full compliance with all laws and other requirements governing the-sequestration facility, including without limitation, the requirements of any Class VI-underground injection control permit associated with the facility and other applicable-requirements;-2. All pending claims regarding the sequestration facility's operation have been addressed and-resolved; and-3. The carbon dioxide injected into the sequestration reservoir has stabilized, and the reservoir is-reasonably expected to retain the stored carbon dioxide.-(3) As of the effective date of a completion certificate:-(a) Ownership of the stored carbon dioxide shall transfer by operation of law, without payment of any-compensation, to the Commonwealth;-(b) If any claim for damages or injury is made against the pore space or surface owner arising from-stored carbon dioxide, the Commonwealth shall defend the pore space or surface owner against that-claim and indemnify and hold the pore space or surface owner har mless from any damages awarded,-except that a pore space owner or surface owner may be liable for causing or contributing to-migration or release of stored carbon dioxide from the reservoir. The Commonwealth's liability for-such claims and its obligation t o indemnify a pore space owner or surface owner for any claim shall-not obligate payment of any damages in excess of the balance of the carbon dioxide sequestration-facility trust fund established in Section 16 of this Act;-(c) The sequestration operator a nd all persons who transported or generated any stored carbon dioxide-shall be released from all regulatory liability and regulatory requirements associated with the-sequestration facility, provided that the sequestration operator shall not be released fro m regulatory-liability for fraud or misrepresentation, nor from any liability existing at common law; and-(d) The Commonwealth's responsibility for monitoring and managing the sequestration facility-following issuance of the completion certificate and assu mption of ownership of the sequestered-carbon dioxide shall be funded from the carbon dioxide sequestration facility trust fund established-in Section 16 of this Act until and unless the federal government assumes responsibility for the long --term monitoring and management of sequestration facilities.-(4) The cabinet shall require that a copy of the completion certificate and a survey of the sequestration field be-filed with the county clerk in the county or counties where the carbon dioxide sequestration fa cility is-located.-SECTION 14. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) There is hereby created in the State Treasury an interest -bearing, restricted, agency account to be known as-the carbon dioxide sequestration facility adm inistrative fund. All amounts required to be deposited into the-fund shall not be segregated into separate accounts but may be used by the cabinet as provided in this-section for any carbon dioxide sequestration project. Notwithstanding KRS 45.229, any bal ance remaining-in the fund at the end of any fiscal year shall not lapse but shall be carried forward for the purposes of the-fund until expended. Expenditures from the fund shall be made by the cabinet for the purposes of:-(a) Payment of all expenses of the cabinet in processing Class VI permits and certificate applications;-(b) Regulating sequestration facilities during their construction, operation, and pre -closure phases; and-(c) Certifying the sequestration amount determinations under Section 18 of t his Act.-(2) The secretary may:-(a) Enter into a cooperative agreement with another government agency to carry out regulatory-responsibilities over a sequestration facility on behalf of the Commonwealth; and-(b) Compensate the government agency for its expenses with money from the fund.-SECTION 15. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) Class VI permit applicants shall pay an application fee to the cabinet. The application fee established on the-fee schedule developed under Section 24 of this Act shall be calculated to ensure sufficient funds are-available for the actual or anticipated cost to the cabinet for the review of the application.-CHAPTER 152-Legislative Research Commission PDF Version+Committee Amendment Signed:-11-(2) Sequestration operators shall pay an annual administrative fee to the cabinet. Th e administrative fee-established on the fee schedule developed under Section 24 of this Act shall be calculated to ensure-sufficient funds are available for the actual or anticipated cost to the cabinet for the regulation of-sequestration facilities.-(3) Sequestration operators seeking completion certificates shall pay the cabinet a fee established on the fee-schedule developed under Section 24 of this Act. The fee shall be calculated to ensure sufficient funds are-available for the actual or anticipated co st to the cabinet for the review of the permit and records relating to-the operation of the sequestration facility to determine eligibility for issuance of the completion certificate.-(4) The application and completion certificate fees shall be deposited i n the carbon dioxide sequestration-facility administrative fund established in Section 14 of this Act.-SECTION 16. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) There is hereby created in the State Treasury an interest-bearing, restricted, agency account to be known as-the carbon dioxide sequestration facility trust fund. Moneys in the fund shall be used for:-(a) The long-term monitoring and management of sequestration facilities prior to closure, plugging, and-abandonment of all monitoring wells in the event of operator default;-(b) Expenses associated with the long -term monitoring and management after issuance of a completion-certificate; and-(c) Determining the causes and remediating the effects of any releas es or environmental emergencies-associated with sequestration facilities.-(2) All amounts required to be deposited into the fund shall not be segregated into separate accounts but may-be used by the cabinet as provided in this section for any carbon dioxid e sequestration project.-Notwithstanding KRS 45.229, any balance remaining in the fund at the end of any fiscal year shall not-lapse but shall be carried forward to carry out the purposes of the fund until fully expended.-(3) The secretary may:-(a) Enter i nto a cooperative agreement with another government agency to carry out regulatory-responsibilities over a sequestration facility on behalf of the Commonwealth; and-(b) Compensate the government agency for its expenses with money from the fund.-SECTION 17. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) Sequestration operators shall pay the cabinet a fee on each ton of carbon dioxide injected for sequestration.-The fee shall be paid at the time of injection and deposited int o the carbon dioxide sequestration facility-trust fund established in Section 16 of this Act. The fee shall be calculated to ensure sufficient funds are-available for the actual or anticipated cost of:-(a) Long-term monitoring and management of sequestration facilities; and-(b) The effects of any releases or environmental emergencies associated with the sequestration facilities.-(2) On or before December 31 of the first year in which the cabinet receives its first application for a Class VI-underground injection control permit and each December 31 thereafter, the cabinet shall prepare and make-publicly available an annual report on the carbon dioxide sequestration facility trust fund established in-Section 16 of this Act that includes, at a minimum, inform ation on receipts, disbursements, and projections-for meeting the fund's objectives in Section 16 of this Act. The purpose of the report is to determine the-sufficiency of fees authorized in Section 24 of this Act.-SECTION 18. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) The cabinet shall, upon request of an operator, certify the amount of injected carbon dioxide demonstrated-to have been stored in a reservoir that has been or is being used for a Class II well in an enhanced oil or-gas recovery project. Upon request of an operator, the cabinet may also certify the amount of injected-carbon dioxide sequestered under Sections 1 to 24 of this Act.-(2) The amounts determined by the cabinet under subsection (1) of this section may be u sed for such matters as-establishing the amounts of carbon credits, allowances, trading, emissions allocations, offsets, and for other-similar purposes.-ACTS OF THE GENERAL ASSEMBLY 12-(3) A person requesting a certification of a sequestration determination shall pay the cabinet a certif ication fee-as authorized in Section 24 of this Act. The fee shall be calculated to ensure sufficient funds are available-for the actual or anticipated cost to the cabinet to provide the certifications described in subsection (1) of-this section.-(4) Any fees the cabinet receives to provide the certifications described in subsection (1) of this section shall be-deposited into the carbon dioxide sequestration facility administrative fund established in Section 14 of this-Act.-SECTION 19. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-Sections 1 to 24 of this Act shall not be construed as altering the respective legal rights or relationship between the-severed mineral estate and a pore space owner as they exist at common law.-SECTION 20. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) If a sequestration operator is unable, after reasonable effort, to obtain the consent of all pore space owners-within a proposed reservoir for an underground carbon dioxide sequestration facility, the cabinet may on-petition satisfying the conditions established in this section, issue an order that the identified pore space-owned by nonconsenting owners be included in a sequestration facility for the purpose of geologic-sequestration of carbon dioxide pursuant to subsection (5) of this section.-(2) The Class VI permit applicant shall negotiate in good faith with the pore space owners and acquire rights-needed to access the pore space.-(3) Except for temporary access in cases of emergency, t he cabinet shall not allow any surface disturbance on-any surface tract or tracts overlying the pore space of a nonconsenting owner.-(4) The sequestration operator shall provide a list to the cabinet of all persons reasonably known to own an-interest in pore space proposed to be included in the reservoir.-(5) (a) If the applicant or operator cannot reach an agreement with the owners of the pore space acreage in-a proposed reservoir, but has secured written consent for at least seventy -five percent (75%) of the-pore space acreage in the proposed reservoir, all the pore space in the sequestration reservoir shall be-declared to be included within the proposed sequestration facility if the cabinet finds that the-requirements of this section have been met.-(b) For the purposes of this section, the interests of any unknown or missing pore space owners may be-declared to be included through the pooling order provided reasonable effort to locate and notify the-owners has been made and the sequestration opera tor has complied with the publication-requirements of subsection (7) of this section. A pooling order shall be made only after the cabinet-provides notice to all pore space owners proposed to be included within the order.-(6) The applicant shall pay to the cabinet all costs associated with the conduct of the administrative hearing as-assessed in the pooling order. The payment shall be made prior to the pooling order becoming effective.-These funds shall be deposited into the carbon dioxide sequestration fac ility administrative fund established-in Section 14 of this Act.-(7) If the proposed pooling order concerns pore space with unknown or missing owners, the sequestration-operator shall, after reasonable efforts to locate the pore space owners, publish one ( 1) notice in the-newspaper of the largest circulation in each county in which the pore space is located. The notice shall-appear no more than forty -five (45) days nor less than thirty (30) days prior to the initial application for the-pooling order. The ap plicant shall file proof of notice with the cabinet concurrently with the application.-The notice shall:-(a) State that an application for a pooling order has been filed with the cabinet;-(b) Describe the property under which the pore space proposed to be collectively used is located;-(c) In the case of an unknown pore space owner, indicate the name of the last known owner;-(d) In the case of a missing pore space owner, identify the owner and the owner's last known address;-and-(e) State that any person cla iming an interest in the pore space proposed to be collectively used shall-notify the cabinet and the Class VI permit applicant at the published address within twenty (20) days-of the publication date.-CHAPTER 152-Legislative Research Commission PDF Version+Floor Amendment LRC Drafter:-13-(8) A pooling order shall authorize the injection and sequestration of carbon dioxide beneath the tract or-portion thereof. The pooling order shall identify the compensation to be paid to unknown, missing, and-nonconsenting pore space owners and the basis for valuation of the collective interest. The cabinet may-consider evidence submitted by nonconsenting pore space owners as to the valuation of their interest.-(9) Except for temporary access in cases of emergency, the pooling order issued by the cabinet shall not-authorize any surface entry or surface disturbance by the permittee on any surface tract or tracts overlying-the pore space of a nonconsenting, missing, or unknown owner.-(10) A certified copy of any pooling order and a survey of the sequestration field shall be maintained by the-cabinet.-(11) If the cabinet or US EPA requires a seismic survey of lands owned by the nonconsenting surface owner and-an operator is unable to reasonably obtain by negotiation with a property owner the right to conduct seismic-surveys on lands owned by the nonconsenting surface owner, then:-(a) The cabinet may issue an order allowing the operator to conduct a seismic survey of the lands owned-by the nonconsenting surface owner from outside the boundaries of the lands owned by the-nonconsenting surface owner;-(b) The ope rator shall, prior to conducting the survey, pay the surface owner just and reasonable-compensation as established by the cabinet; and-(c) Any data obtained by the operator through a seismic survey of the lands owned by a nonconsenting-surface owner shall be held as confidential and shall be used only by the permittee, the cabinet, and-US EPA for the purpose of satisfying statutory or regulatory requirements.-(12) Except for the authorized persons and circumstances in subsection (11) of this section, any p erson-disclosing confidential seismic survey data may be liable to the nonconsenting surface owner as provided-under law.-(13) The operator shall defend, indemnify, and hold harmless the property owner for all claims arising out of-any surface or subsurfac e entry onto the property by the operator, its contractors, and its agents, except-those claims arising from the intentional acts of a property owner.-SECTION 21. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) The sequestration oper ator shall deposit the funds due to unknown or missing pore space owners in an-interest-bearing trust account.-(2) If the unknown or missing pore space owners remain unknown or missing for a period of seven (7) years-from the date of first injection into the sequestration reservoir, the sequestration operator shall pay the-funds held in trust to the surface owners of the tract overlying the pore space owned by the unknown or-missing pore space owners.-(3) If a surface owner remains missing or unknown for a period of seven (7) years from the date of first-injection into the sequestration reservoir, the sequestration operator shall deposit the funds held in trust to-the carbon dioxide sequestration facility trust fund established in Section 16 of this Act.-SECTION 22. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-If any provision of Sections 1 to 24 of this Act or its application to any person or circumstances is held invalid, the-invalidity does not affect other provisions or application s of Sections 1 to 24 of this Act which can be given effect-without the invalid provision or application, and to this end the provisions of Sections 1 to 24 of this Act are-severable.-SECTION 23. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FO LLOWS:-(1) (a) If a person or operator fails to comply with the requirements of Sections 1 to 24 of this Act or any-administrative regulation or order promulgated or issued thereunder, the cabinet shall issue a notice-of noncompliance to the person or operator and serve the notice in accordance with subsection (5) of-this section. The notice shall specify the nature of the violation, the remedial action required to abate-the violation, and the period of time set by the cabinet for abatement of the violation.-ACTS OF THE GENERAL ASSEMBLY 14-(b) If a person or operator fails to abate the violation within the time prescribed in the notice, the cabinet-shall issue a failure to abate cessation order to the person or operator and serve the notice in-accordance with subsection (5) of this section. The order shall:-1. Require the person or operator to immediately complete remedial actions to abate the violation-described in the notice and to cease any underground injection activity at the sequestration-facility or site where the violation is occurring; and-2. Remain in effect until the violation has been abated or the order is vacated or terminated in-writing by the cabinet.-(c) The cabinet shall issue a forfeiture order and order the financial responsibility instruments covering-the sequestration facility be forfeited to the cabinet if:-1. An agreement has not been reached with the cabinet regarding the alleged failure to comply-with the notice to abate the violation; and-2. The director determines the operator has not complied with the requirements set forth in the-notice of noncompliance or the failure to abate cessation order.-(d) The forfeiture order shall become effective thirty (30) days after the cabinet gives the operator notice-of the order, unless a petition has been filed pursuant to KRS 353.700, in wh ich case the forfeiture-order shall become effective only upon a final determination of the secretary affirming the forfeiture-order following the conclusion of the petition process.-(2) (a) In addition to a notice of noncompliance or failure to abate cess ation order issued pursuant to-subsection (1) of this section, the cabinet may issue a closure order to any person or operator where:-1. A sequestration facility is in violation of Sections 1 to 24 of this Act or any administrative-regulation or order prom ulgated or issued thereunder, and the violation creates an imminent-danger to the health or safety of the public or is causing or can be reasonably expected to-cause significant imminent environmental harm; or-2. A sequestration facility is in operation by any person without first posting financial-responsibility and obtaining written approval of the cabinet.-(b) The closure order shall be affixed by a red tag marker at the conspicuous location at the facility with-a letter of violation and a copy of the closure order mailed to the address of record for the responsible-person or operator, if an address is on file with the cabinet. The letter of violation and closure order-shall notify the person or operator to immediately:-1. Cease operation of the sequestration facility; and-2. Abate the violation.-(c) Any person operating a sequestration facility under the circumstances described in paragraph (a)2.-of this subsection may be ordered to either submit financial responsibility and obtain transfer of the-facility or complete final reclamation and site closure for the facility, but the order does not relieve-any prior obligation owed by the current operator of record. The closure order may be appealed-pursuant to KRS 353.700 within thirty (30) days of issua nce. Any person or operator that fails to-comply with a closure order issued pursuant to this section shall be subject to a civil and criminal-penalty under KRS 353.990.-(3) (a) A copy of:-1. All enforcement documents under this section shall be served on the surface and pore space-owner, if they are different from the property owner, where the violation occurred; and-2. The notice, at the time of issuance, shall be delivered to the complaining party if he or she is-different from the operator, and if the enforcement document arises out of a citizen complaint.-(b) Resolution of the enforcement action issued under this section shall require reimbursement of costs-incurred by the cabinet.-(4) When it appears that any person is violating or threatening to viola te any provision of Sections 1 to 24 of-this Act or any rule, administrative regulation, or order promulgated or issued thereunder, the cabinet may-bring suit to restrain the person from continuing the violation or from carrying out the threatened violatio n.-A suit brought under this subsection shall:-CHAPTER 152-Legislative Research Commission PDF Version+Adopted: Date:-15-(a) Be filed in the:-1. Franklin Circuit Court;-2. Circuit Court of the county in which the violation occurred or is threatened; or-3. Circuit Court of the county in which the defendant resides or in which any defendant resides if-there is more than one (1) defendant; and-(b) Give the court jurisdiction to grant without bond or other undertaking the prohibitory or mandatory-injunction, as the facts may warrant, including a temporary restraining order or injunct ion.-(5) (a) Service of any notice or order issued under this section shall be:-1. Handed to the person in charge of the sequestration facility;-2. Sent by certified mail, return receipt requested, addressed to the permanent address shown on-the application for a permit;-3. Sent by electronic mail to the address shown on the permit application or to an address-provided to the cabinet voluntarily; or-4. Sent by certified or electronic mail to the address known to the cabinet, if no address is shown-on the application for a permit or the address is no longer valid.-(b) Service in accordance with paragraph (a)3. or 4. of this subsection shall be effectiv e upon delivery of-the notice or the order to the recipient's inbox by email and verification sent to the cabinet by an-electronic registered receipt.-(6) The commencement of a proceeding pursuant to KRS 353.700 shall not operate as a stay of a notice or-order, including a notice or order that contains the requirement to complete all remedial measures to abate-the cited violation, issued under this section. A party served with a notice or order under this section may-request a stay of the notice or order by filing a written petition for temporary relief with the cabinet's Office-of Administrative Hearings. A hearing on the petition shall occur within ten (10) days of the office's receipt-of the petition for temporary relief unless the petitioner waives this requirement. The hearing officer shall-render a decision on the petition for temporary relief within three (3) working days of the hearing. A party-aggrieved by the decision of the hearing officer may file a written request for review by the secretary.-Temporary relief may be granted from a notice or order issued under this section if:-(a) The person requesting relief shows that there is substantial likelihood that the findings on the merits-in an administrative hearing conducted by the cabinet will be favo rable to the person; and-(b) The relief will not adversely affect the public health or safety or cause significant imminent-environmental harm to land, air, or water resources.-(7) (a) If the cabinet fails to bring suit to enjoin a violation or threatened violation of any provision of-Sections 1 to 24 of this Act or any rule, administrative regulation, or order promulgated or issued-thereunder within ten (10) days after receipt of a written request to do so by any person who is or will-be adversely affected by the violation, the person making the request may bring suit to restrain the-violation or threatened violation in any court in which the cabinet might have brought suit.-(b) The cabinet shall be made a party defendant in the suit in addition to the per son allegedly violating-or threatening to violate a provision of Sections 1 to 24 of the Act, or any rule, administrative-regulation, or order promulgated or issued thereunder.-SECTION 24. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO READ AS FOLLOWS:-(1) In addition to the powers conferred upon the cabinet in other provisions of Sections 1 to 24 of this Act, the-cabinet may develop, promulgate, and submit for approval a regulatory program for the purpose of-accepting primary responsibility for the administration of the underground injection control program under-42 U.S.C. sec. 300h et seq. The cabinet shall include in any regulatory program developed in administrative-regulations promulgated in accordance with KRS Chapter 13A:-(a) Regarding the plugging , conversion, maintenance, monitoring, and abandonment of Class VI wells,-measures to protect underground sources of drinking water and to prevent their endangerment;-ACTS OF THE GENERAL ASSEMBLY 16-(b) A prohibition of underground injection through Class VI wells, except as authorized b y a Class VI-permit issued pursuant thereto;-(c) The details of the requirements for a permit application, including:-1. Site characterization;-2. Operation of injection wells;-3. A permitting process, including detailed time frames and methods to modify a nd transfer-permits;-4. Comprehensive monitoring that addresses all aspects of well integrity, carbon dioxide injection-and sequestration, and air and groundwater quality during the injection operation and the-post-injection site care period;-5. Financial responsibility ensuring the availability of funds for the life of a carbon dioxide-sequestration project, including post-injection site care and emergency response; and-6. Reporting and recordkeeping that provide project -specific information to evaluate t he site-operations and ensure environmental protection;-(d) The criteria for reviewing compliance with eligibility requirements in subsection (12) of Section 4 of-this Act and procedures for restoration of eligibility for a permit;-(e) The requisite features of the Class VI underground injection control program including those for-the:-1. Administration of the carbon dioxide sequestration facility administration fund established in-Section 14 of this Act;-2. Issuance of determinations that certify the amount of carbon dioxide stored pursuant to-individual Class VI underground injection control permits issued for that purpose, based upon-requests for sequestration determination;-3. Issuance of pooling orders as part of the development of a proposed carbon dioxide-sequestration project;-4. Issuance of completion certificates; and-5. Requirement for owners or operators of Class VI underground injection control wells to-demonstrate financial responsibility for the cost of clos ing all Class VI underground injection-control wells. The demonstration of financial responsibility may include but is not be limited-to the qualifying instruments required by Section 4 of this Act;-(f) The requirements for reasonable public notice and public participation for:-1. Applications for Class VI underground injection control permits;-2. Applications for drilling permits;-3. Issuance of a completion certificate; and-4. Unknown or missing owners; and-(g) A schedule of fees to be assessed on applica nts and operators. The fees shall cover all costs to the-cabinet for administering the underground injection control program. The schedule of fees shall be-reviewed and amended as necessary to ensure that the underground injection control program is-fully funded at all times. The cabinet may collect application fees for the drilling of wells for use as-Class VI wells prior to delegation of authority by the US EPA.-(2) Administrative regulations promulgated pursuant to this section to allow for assumption of primary-responsibility for administration of the underground injection control program under 42 U.S.C. sec. 300h et-seq. shall conform to the standards and procedures established by US EPA for Class VI wells.-(3) Any administrative regulations promulgated pursuant to Sections 1 to 24 of this Act shall be:-(a) Promulgated in accordance with KRS Chapter 13A; and-(b) Deemed to be necessary to prevent the loss of federal or state funds for the purposes of KRS 13A.105.-CHAPTER 152-Legislative Research Commission PDF Version+Rejected: Doc. ID: XXXX-17-(4) (a) Any order or final determination of the cabinet that is issued pursuant to Sections 1 to 24 of this Act-shall be subject to review in accordance with KRS 353.700 and any administrative regulation-promulgated thereunder.-(b) As used in this subsection, "order or final determination" includ es but is not limited to the issuance,-denial, modification, or revocation of a permit, but does not include the issuance of a letter-identifying deficiencies in an application for a permit or other nonfinal determinations.-Section 25. KRS 278.704 is amended to read as follows:-(1) No person shall commence to construct a merchant electric generating facility until that person has applied for-and obtained a construction certificate for the facility from the board. The construction certificate shall be-valid for a period of three (3) years after the issuance date of the last permit required to be obtained from the-Energy and Environment Cabinet after which the certificate shall be void. The certificate shall be conditioned-upon the applicant obtaining neces sary air, water, and waste permits. If an applicant has not obtained all-necessary permits and has not commenced to construct prior to the expiration date of the certificate, the-applicant shall be required to obtain a new valid certificate from the board.-(2) (a) Except as provided in subsections (3), (4), and (5) of this section, no construction certificate shall be-issued to construct a merchant electric generating facility unless:-1. The exhaust stack of the proposed facility and any wind turbine is at least one thousand (1,000)-feet from the property boundary of any adjoining property owner;[ and]-2. All proposed structures or facilities used in connection with the generation or storage [for-generation] of electricity are two thousand (2,000) feet from a ny residential neighborhood,-school, hospital, or nursing home facility; and-3. With regard to a wind power facility, the maximum height of the wind turbine, as measured-from the natural grade to the top of the hub where the rotor attaches, does not exceed three-hundred fifty (350) feet.-(b) For purposes of applications for site compatibility certificates pursuant to KRS 278.216 :[,]-1. Only the exhaust stack of the proposed facility to be actually used for coal or gas -fired-generation[ or, beginning with applications for site compatibility certificates filed on or after-January 1, 2015, the proposed structure or facility to be actually used for solar or wind-generation] shall be required to be at least one thousand (1,000) feet from the prop erty boundary-of any adjoining property owner and two thousand (2,000) feet from any residential-neighborhood, school, hospital, or nursing home facility;-2. Any proposed structure to be actually used for the generation of electricity from solar or wind-power shall be at least one thousand (1,000) feet from the property boundary of any adjoining-property owner; and-3. Any proposed structures or facilities used in connection with the generation or storage of-electricity from solar or wind power shall be at l east two thousand (2,000) feet from any-residential neighborhood, school, hospital, or nursing home facility.-(3) If the merchant electric generating facility is proposed to be located in a county or a municipality with-planning and zoning, then maximum he ight, decommissioning, and setback requirements from a property-boundary, residential neighborhood, school, hospital, or nursing home facility may be established by the-planning and zoning commission. Any decommissioning requirement , maximum height limitation, or setback-established by a planning and zoning commission for a facility in an area over which it has jurisdiction shall:-(a) Except with regard to the minimum decommission bonding amount required in subsection (2)(m)5.a.-of Section 26 of this Act, have primacy over the decommissioning requirements in KRS 278.706(2)(m) ,-the maximum height limitation in subsection (2)(a)3. of this section, and the setback requirement in-subsections (2) and (5) of this section; and-(b) Not be subject to modification or waiver by the board through a request for deviation by the applicant,-as provided in subsection (4) of this section or otherwise.-(4) The board may grant a deviation from the requirements of subsection (2) of this section on a finding that the-proposed facility is designed to and, as located, would meet the goals of KRS 224.10 -280, 278.010, 278.212,-ACTS OF THE GENERAL ASSEMBLY 18-278.214, 278.216, 278.218, and 278.700 to 278.716 at a distance closer than those provided in subsection (2)-of this section.-(5) If the merchant electric gener ating facility is proposed to be located on a site of a former coal processing plant-in the Commonwealth where the electric generating facility will utilize on -site waste coal as a fuel source, then-the one thousand (1,000) foot property boundary requireme nt in subsection (2)(a)1. of this section shall not be-applicable; however, the applicant shall be required to meet any other setback requirements contained in-subsection (2)(a)2. of this section.-(6) If requested, a merchant electric generating entity con sidering construction of a facility for the generation of-electricity or a person acting on behalf of such an entity shall hold a public meeting in any county where-acquisition of real estate or any interest in real estate is being considered for the facil ity. A request for such a-meeting may be made by the commission, or by any city or county governmental entity, including a board of-commissioners, planning and zoning, fiscal court, mayor, or county judge/executive. The meeting shall be held-not more than thirty (30) days from the date of the request.-(7) The purpose of the meeting under subsection (6) of this section is to fully inform landowners and other-interested parties of the full extent of the project being considered, including the project time lin e. One (1) or-more representatives of the entity with full knowledge of all aspects of the project shall be present and shall-answer questions from the public.-(8) Notice of the time, subject, and location of the meeting under subsection (6) of this sectio n shall be posted in-both a local newspaper, if any, and a newspaper of general circulation in the county. Notice shall also be-placed on the websites of the unregulated entity, and any local governmental unit. Owners of real estate known-to be included in the project and any person whose property adjoins at any point any property to be included in-the project shall be notified personally by mail. All notices must be mailed or posted at least two (2) weeks-prior to the meeting.-(9) The merchant electric gen erating entity or a person acting on behalf of a merchant electric generating entity-shall, on or before the date of the public meeting held under subsection (6) of this section, provide notice of all-research, testing, or any other activities being planned or considered to:-(a) The Energy and Environment Cabinet;-(b) The Public Service Commission;-(c) The Transportation Cabinet;-(d) The Attorney General; and-(e) The Office of the Governor.-(10) Subsections (6) to (9) of this section shall not apply to any facility or project that has already received a-certificate of construction from the board.-Section 26. KRS 278.706 is amended to read as follows:-(1) Any person seeking to obtain a construction certificate from the board to construct a merchant electri c-generating facility shall file an application at the office of the Public Service Commission.-(2) A completed application shall include the following:-(a) The name, address, and telephone number of the person proposing to construct and own the merchant-electric generating facility;-(b) A full description of the proposed site, including a map showing the distance of the proposed site from-residential neighborhoods, the nearest residential structures, schools, and public and private parks that-are located within a two (2) mile radius of the proposed facility;-(c) Evidence of public notice that shall include the location of the proposed site and a general description of-the project, state that the proposed construction is subject to approval by the board, and provide the-telephone number and address of the Public Service Commission. Public notice shall be given within-thirty (30) days immediately preceding the application filing to:-1. Landowners whose property borders the proposed site; and-2. The general pub lic in a newspaper of general circulation in the county or municipality in which-the facility is proposed to be located;-CHAPTER 152-Legislative Research Commission PDF Version--19-(d) A statement certifying that the proposed plant will be in compliance with all local ordinances and-regulations concerning noise control and with any local planning and zoning ordinances. The statement-shall also disclose setback requirements established by the planning and zoning commission as provided-under KRS 278.704(3);-(e) If the facility is not proposed to be located on a site of a former coal processing plant and the facility-will use on -site waste coal as a fuel source or in an area where a planning and zoning commission has-established a setback requirement pursuant to KRS 278.704(3), a statement that the exhaust stac k of the-proposed facility and any wind turbine is at least one thousand (1,000) feet from the property boundary-of any adjoining property owner and all proposed structures or facilities used in connection with the-generation or storage [for generation] of electricity are two thousand (2,000) feet from any residential-neighborhood, school, hospital, or nursing home facility, unless coal or gas -fired generating facilities-capable of generating ten megawatts (10MW) or more currently exist on the site. If the f acility is-proposed to be located on a site of a former coal processing plant and the facility will use on -site waste-coal as a fuel source, a statement that the proposed site is compatible with the setback requirements-provided under KRS 278.704(5). If th e facility is proposed to be located in a jurisdiction that has-established setback requirements pursuant to KRS 278.704(3), a statement that the proposed site is in-compliance with those established setback requirements;-(f) A complete report of the applicant's public involvement program activities undertaken prior to the filing-of the application, including:-1. The scheduling and conducting of a public meeting in the county or counties in which the-proposed facility will be constructed at least ninety (90 ) days prior to the filing of an application,-for the purpose of informing the public of the project being considered and receiving comment-on it;-2. Evidence that notice of the time, subject, and location of the meeting was published in the-newspaper of g eneral circulation in the county, and that individual notice was mailed to all-owners of property adjoining the proposed project at least two (2) weeks prior to the meeting;-and-3. Any use of media coverage, direct mailing, fliers, newsletters, additional public meetings,-establishment of a community advisory group, and any other efforts to obtain local involvement-in the siting process;-(g) A summary of the efforts made by the applicant to locate the proposed facility on a site where existing-electric generating facilities are located;-(h) Proof of service of a copy of the application upon the chief executive officer of each county and-municipal corporation in which the proposed facility is to be located, and upon the chief officer of each-public agency cha rged with the duty of planning land use in the jurisdiction in which the facility is-proposed to be located;-(i) An analysis of the proposed facility's projected effect on the electricity transmission system in-Kentucky;-(j) An analysis of the proposed facility's economic impact on the affected region and the state;-(k) A detailed listing of all violations by it, or any person with an ownership interest, of federal or state-environmental laws, rules, or administrative regulations, whether judicial or admini strative, where-violations have resulted in criminal convictions or civil or administrative fines exceeding five thousand-dollars ($5,000). The status of any pending action, whether judicial or administrative, shall also be-submitted;-(l) A site assessment report as specified in KRS 278.708. The applicant may submit and the board may-accept documentation of compliance with the National Environmental Policy Act (NEPA) rather than a-site assessment report;[ and]-(m) A decommissioning plan that shall describe how the merchant electric generating facility will be-decommissioned and dismantled following the end of its useful life. The decommissioning plan shall, at-a minimum, include plans to:-ACTS OF THE GENERAL ASSEMBLY 20-1. Unless otherwise requested by the current landowner at the time of decommissioning, remove-all above-ground facilities;-2. Unless otherwise requested by the current landowner at the time of decommissioning , remove-any underground components and foundations of above -ground facilities. Facilities removed-under this subparag raph shall be removed in their entirety[to a depth of three (3) feet below the-surface grade of the land in or on which the component was installed] , unless the current-landowner and the applicant otherwise agree at the time of decommissioning to a different-depth;-3. Return the land to a substantially similar state with the same or similar soil quality as it was-prior to the commencement of construction;-4. Unless otherwise requested by the current landowner at the time of decommissioning, leave any-interconnection or other facilities in place for future use at the completion of the-decommissioning process;-5. Secure a bond or other similar security for the project to assure financial performance of the-decommissioning obligation, provided that:-a. The amount of the proposed bond or similar security shall be determined by an-independent, licensed engineer who is experienced in the decommissioning the type of[-solar] electric generating facility to be decommissioned [facilities] and has no financi al-interest in either the merchant electric generating facility or any parcel of land upon which-the merchant electric generating facility is located. The proposed amount of the bond or-similar security shall be the greater of[either]:-i. The net present v alue of the total estimated cost of completing the-decommissioning plan[, less the current net salvage value of the merchant electric-generating facility's components]; or-ii. The bond amount required by a county or municipal government that has-established a decommissioning bond requirement or similar security obligation in-the county or municipality where the merchant electric generating facility will be-located. If the facility will be located in more than one (1) county or municipality-that has established a decommissioning bond or similar security obligation, then the-higher amount shall be required for the facility;-b. The bond or other similar security names:-i. For property that is leased by the applicant, each landowner from whom the-applicant leases land and the Energy and Environment Cabinet as the primary co --beneficiaries; or-ii. For property that is owned by the applicant, the Energy and Environment Cabinet-as the primary beneficiary;-c. If the merchant electric generating facility is to be locat ed in a county or municipality that-has not established a decommissioning bond or other similar security obligation, the bond-or other similar security shall name the county or municipality as a secondary beneficiary-with the county's or municipality's consent;-d. The bond or other similar security shall be provided by an insurance company or surety-that shall at all times maintain at least an "Excellent" rating as measured by the AM Best-rating agency or an investment grade credit rating by any national credit rating agency-and, if available, shall be noncancelable by the provider or the customer until completion-of the decommissioning plan or until a replacement bond is secured; and-e. The bond or other similar security shall provide that at lea st thirty (30) days prior to its-cancellation or lapse, the surety shall notify the applicant, its successor or assign, each-landowner, the Energy and Environment Cabinet, and each[the] county or city in which-the facility is located of the impending cance llation or lapse. The notice shall specify the-reason for the cancellation or lapse and provide any of the parties, either jointly or-separately, the opportunity to cure the cancellation or lapse prior to it becoming effective.-The applicant, its successor , or its assign, shall be responsible for all costs incurred by all-CHAPTER 152-Legislative Research Commission PDF Version--21-parties to cure the cancellation or lapse of the bond. Each landowner, or the Energy and-Environment Cabinet with the prior approval of each landowner, may make a demand on-the bond and initiate and complete the decommissioning plan;[.]-6. Communicate with each affected landowner at the end of the merchant electric generating-facility's useful life so that any requests of the landowner that are in addition to the minimum-requirements set forth in this paragraph and in addition to any other requirements specified in the-lease with the landowner may, in the sole discretion of the applicant or its successor or assign, be-accommodated; and-7. Incorporate the requirements of subparagraphs 1. to 6 . of this paragraph into the applicant's-leases with landowners; and-(n) For applications for the construction of wind power facilities, a statement certifying that:-1. Any wind turbine will not be artificially lighted except as required by law;-2. Wind power facilities will be sited in a manner that minimizes shadowing or flicker impacts;-and-3. Any shadowing or flicker impacts will not have a significant adverse impact on neighboring or-adjacent property uses through siting or mitigation.-(3) (a) The entity causing the decommissioning plan required under subsection (2)(m) of this section to be-carried out shall be entitled to the proceeds from the sale of any salvaged materials or components of-the merchant electric generating facility recovered during the decommissioning process.-(b) Any proceeds that the Energy and Environment Cabinet recovers from the sale of salvaged materials-or components in the course of carrying out a decommissioning plan under subsection (2)(m) of this-section that, taken with the decommissioning bond amounts that have been drawn upon, exceed the-cost of completing the decommissioning plan shall be deposited in the merchant electric generating-facility monitoring and enforcement fund established in KRS 224.10 -285.-(4) Application fees for a construction certificate shall be set by the board and deposited into a trust and agency-account to the credit of the commission.-(5)[(4)] Replacement of a merchant electric generating facility with a like facility, or the repair, modification,-retrofitting, enhancement, or reconfiguration of a merchant electric generating facility shall not, for the-purposes of this section and KRS 224.10-280, 278.704, 278.708, 278.710, and 278.712, constitute construction-of a merchant electric generating facility.-(6)[(5)] The board shall promulgate administrative regulations prescribing fees to pay expenses associated with-its review of applications filed with it pursuant to KRS 278.700 to 278.716. All application fees collected by-the board shall be deposited i n a trust and agency account to the credit of the Public Service Commission. If a-majority of the members of the board find that an applicant's initial fees are insufficient to pay the board's-expenses associated with the application, including the board's expenses associated with legal review thereof,-the board shall assess a supplemental application fee to cover the additional expenses. An applicant's failure to-pay a fee assessed pursuant to this subsection shall be grounds for denial of the application.-Section 27. KRS 278.710 is amended to read as follows:-(1) Within one hundred twenty (120) days of receipt of an administratively complete application, or within one-hundred eighty (180) days of receipt of an administratively complete application if a hearing is requested, the-board shall, by majority vote, grant or deny a construction certificate, either in whole or in part, based upon the-following criteria:-(a) Impact of the facility on scenic surroundings, property values, the patte rn and type of development of-adjacent property, and surrounding roads;-(b) Anticipated noise levels expected as a result of construction and operation of the proposed facility;-(c) The economic impact of the facility upon the affected region and the state;-(d) Whether the facility is proposed for a site upon which existing generating facilities, capable of-generating ten megawatts (10MW) or more of electricity, are currently located;-ACTS OF THE GENERAL ASSEMBLY 22-(e) Whether the proposed facility will meet all local planning and zoning requirements that existed on the-date the application was filed;-(f) Whether the additional load imposed upon the electricity transmission system by use of the merchant-electric generating facility will adversely affect the reliability of service for reta il customers of electric-utilities regulated by the Public Service Commission;-(g) Except where the facility is subject to a statewide setback established by a planning and zoning-commission as provided in KRS 278.704(3) and except for a facility proposed to be located on a site of-a former coal processing plant and the facility will use on -site waste coal as a fuel source, whether the-exhaust stack of the proposed merchant electric generating facility and any wind turbine is at least one-thousand (1,000) f eet from the property boundary of any adjoining property owner and all proposed-structures or facilities used in connection with the generation or storage [for generation] of electricity-are two thousand (2,000) feet from any residential neighborhood, schoo l, hospital, or nursing home-facility, unless a different setback has been requested and approved under KRS 278.704(4). If a-planning and zoning commission has established setback requirements that differ from those under KRS-278.704(2), the applicant shal l provide evidence of compliance. If the facility is proposed to be located-on site of a former coal processing plant and the facility will use on -site waste coal as a fuel source, the-applicant shall provide evidence of compliance with the setback require ments provided in KRS-278.704(5);-(h) The efficacy of any proposed measures to mitigate adverse impacts that are identified pursuant to-paragraph (a), (b), (e), or (f) of this subsection from the construction or operation of the proposed-facility;-(i) Whether the applicant has a good environmental compliance history;[ and]-(j) Whether the decommissioning plan is complete and complies with the requirements of KRS-278.706(2)(m) and any other local requirements that may apply; and-(k) Whether, for applications for the construction of wind power facilities, the applicant and facilities-will comply with the certifications required in subsection (2)(n) of Section 26 of this Act .-(2) When considering an application for a construction certificate for a m erchant electric generating facility, the-board may consider the policy of the General Assembly to encourage the use of coal as a principal fuel for-electricity generation as set forth in KRS 152.210, provided that any facility, regardless of fuel choice, shall-comply fully with KRS 224.10-280, 278.212, 278.216, and 278.700 to 278.716.-(3) A person that has received a construction certificate for a merchant electric generating facility shall:-(a) File with the Energy and Environment Cabinet the copy of the bond or other similar security that,-pursuant to KRS 278.706(2)(m)5., is required by a county or a municipal government or as part of a-decommissioning plan, no later than the date upon which the construction of the merchant generating-facility commences, and refile an updated copy at least once every five (5) years thereafter;-(b) Not transfer rights and obligation under the certificate without having first applied for and received a-board determination that:-1. The acquirer has a good environmental compliance history; and-2. The acquirer has the financial, technical, and managerial capacity to meet the obligations-imposed by the terms of the approval or has the ability to contract to meet these obligations;-(c) File with the Energy and Environment Cabinet a notice of the date that construction is complete and the-merchant electric generating facility begins producing electricity for sale; and-(d) Following the date the merchant electric generating facility begins producing electricity for sale, file a-notice of any transaction involving the transfer or sale of ownership, control, or the right to control the-merchant electric generating facility, with lessors of property where the merchant electric generating-facility is located, the Energy and Environment Ca binet, the county judge/executive of a county and, if-applicable, the mayor of a municipality in which the merchant electric generating facility is located,-within ten (10) days of completing the transaction. The notice shall include the name, street addre ss,-telephone number, and e-mail address of the person acquiring ownership, control, or the right to control-the merchant electric generating facility.-CHAPTER 152-Legislative Research Commission PDF Version--23-(4) A person that has acquired ownership, control, or the right to control a merchant electric generatin g facility-from the applicant or its successor or assign shall file with the Energy and Environment Cabinet within ten-(10) days of completing the acquisition:-(a) A written consent to assume the obligations set forth in the decommissioning plan as of the date the-acquisition occurred; and-(b) A notice of adoption of an existing bond or other similar security previously filed pursuant to-subsection (3)(a) of this section or a replacement bond or other similar security that complies with KRS-278.706(2)(m)5. An existing bond or other similar security shall be adopted, or a replacement bond or-other similar security shall be in place, as of the date the acquisition occurs so that there is no lapse in-coverage of the decommissioning bond or other similar securit y. A person making a filing pursuant to-this subsection shall file an updated bond or other similar security that complies with KRS-278.706(2)(m)5. at least once every five (5) years.-(5) Any person who transfers or sells ownership, control, or the right t o control a merchant electric generating-facility shall remain liable for all existing decommissioning obligations and bond requirements until the person-who acquires ownership, control, or the right to control the merchant electric generating facility fil es with the-Energy and Environment Cabinet the documents required by subsection (4) of this section and they are-accepted as complete by the secretary.-(6) Any application approval condition that requires the approval of the transfer of control of a mercha nt electric-generating facility after construction is complete shall be void and unenforceable, but any transfer of control of-a merchant electric generating facility shall be subject to compliance with the requirements of subsections-(3)(d), (4), and (5) of this section.-(7) Notwithstanding any provision of law to the contrary, including any order issued by the board prior to June 29,-2023, after the board has approved an application for a construction certificate for a merchant electric-generating facility under this section, the approved applicant has posted the bond or similar security required-under KRS 278.706(2)(m)5., and the facility is constructed and begins generating electricity for sale, the-board's authority to enforce any conditions of the cons truction certificate, including bonding and-decommissioning requirements, shall end and the secretary of the Energy and Environment Cabinet shall-monitor and enforce the construction certificate holder's compliance with the requirements of KRS 278.700 to-278.716 and the conditions of its construction certificate application approval.-(8) In addition to all compliance monitoring and enforcement performed by the secretary of the Energy and-Environment Cabinet, and notwithstanding any provision of law to the c ontrary, the secretary shall also review-the decommissioning plan required by KRS 278.706(2)(m) or by local ordinance, license, or permit and the-bond or similar security amount required by KRS 278.706(2)(m)5. or by local ordinance, license, or permit as-needed, including any time a transfer determination is made under subsection (5) of this section, but in any-event at least once every five (5) years. Upon review, the secretary of the Energy and Environment Cabinet-shall require the decommissioning plan to be updated and the bond amount to be changed to match any-significant change in circumstances or change to the estimated cost of effectuating the decommissioning plan [-or to the salvage value of the facility or its components].-(9) After the facility for which an application for a construction certificate has been approved is constructed and-begins generating electricity for sale, the secretary of the Energy and Environment Cabinet shall ensure-ongoing compliance with the mitigation measures that were cond itions of the application approval under KRS-278.708(6) and any enforcement by the board of the mitigation measures shall cease.-(10) During the period that the merchant electric generating facility is operational, if solar panels or wind turbine-components are replaced and discarded, the facility owner -operator shall remove discarded solar panels or-wind turbine components from the site within ninety (90) days of completion of the work. Upon request of the-facility owner -operator, the secretary of the Ener gy and Environment Cabinet may extend the time period-under this subsection for removing discarded solar panels or wind turbine components.-Section 28. KRS 278.714 is amended to read as follows:-(1) No person shall commence to construct a nonregulated e lectric transmission line or a carbon dioxide-transmission pipeline without a construction certificate issued by the board. An application for a construction-certificate shall be filed at the offices of the Public Service Commission along with an applicati on fee as set-forth in subsection (6) of this section. The board may hire a consultant to review the transmission line or-carbon dioxide pipeline and provide recommendations concerning the adequacy of the application and-ACTS OF THE GENERAL ASSEMBLY 24-proposed mitigation measures. The b oard may direct the consultant to prepare a report recommending changes-in the route of the carbon dioxide pipeline or the route of the electric transmission line. Any consultant-expenses or fees shall be borne by the applicant.-(2) A completed application shall include the following:-(a) The name, address, and telephone number of the person proposing construction of the nonregulated-electric transmission line or the carbon dioxide transmission pipeline;-(b) A full description of the proposed route of the e lectric transmission line or the carbon dioxide-transmission pipeline and its appurtenances. The description shall include a map or maps showing:-1. The location of the proposed line or pipeline and all proposed structures that will support it;-2. The proposed right-of-way limits;-3. Existing property lines and the names of persons who own the property over which the line or-pipeline will cross; and-4. a. The distance of the proposed electric transmission line from residential neighborhoods,-schools, and public and private parks within one (1) mile of the proposed facilities; or-b. The distance of the proposed carbon dioxide transmission pipeline from residential-neighborhoods, schools, and parks, either private or public, within one thousand (1,000)-feet of the proposed facilities;-(c) With respect to electric transmission lines, a full description of the proposed line and appurtenances,-including the following:-1. Initial and design voltages and capacities;-2. Length of line;-3. Terminal points; and-4. Substation connections;-(d) A statement that the proposed electric transmission line and appurtenances will be constructed and-maintained in accordance with accepted engineering practices and the National Electric Safety Code;-(e) With respect to both electric transmission lines and carbon dioxide transmission pipelines, evidence that-public notice has been given by publication in a newspaper of general circulation in the general area-concerned. Public notice shall include the location of the pro posed electric transmission line or carbon-dioxide pipeline, shall state that the proposed line or pipeline is subject to approval by the board, and-shall provide the telephone number and address of the Public Service Commission; and-(f) Proof of service o f a copy of the application upon the chief executive officer of each county and-municipal corporation in which the proposed electric transmission line or carbon dioxide transmission-pipeline is to be located, and upon the chief officer of each public agenc y charged with the duty of-planning land use in the general area in which the line or pipeline is proposed to be located.-(3) With respect to electric transmission lines, within one hundred twenty (120) days of receipt of the application,-or one hundred ei ghty (180) days if a local public hearing is held, the board shall, by majority vote, grant or-deny the construction certificate either in whole or in part. Action to grant the certificate shall be based on the-board's determination that the proposed route of the line will minimize significant adverse impact on the scenic-assets of Kentucky and that the applicant will construct and maintain the line according to all applicable legal-requirements. In addition, the board may consider the interstate benefits e xpected to be achieved by the-proposed construction or modification of electric transmission facilities in the Commonwealth. If the board-determines that locating the transmission line will result in significant degradation of scenic factors or if the-board determines that the construction and maintenance of the line will be in violation of applicable legal-requirements, the board may deny the application or condition the application's approval upon relocation of the-route of the line, or changes in design or configuration of the line.-(4) A public hearing on an application to construct a nonregulated electric transmission line may be held in-accordance with the provisions of KRS 278.712.-(5) The board shall convene a local public information meeting upon re ceipt of a request by not less than three (3)-interested persons that reside in the county or counties in which the carbon dioxide pipeline is proposed to be-CHAPTER 152-Legislative Research Commission PDF Version--25-constructed. If the board convenes the local public information meeting, the meeting will be in th e county seat-of one (1) of the counties, as determined by the board, in which the proposed carbon dioxide pipeline will be-located. The meeting shall provide an opportunity for members of the public to be briefed and ask the party-proposing the carbon dioxide pipeline questions about the pipeline.-(6) Pursuant to KRS 278.706 (4)[(3)] and (6)[(5)], the board shall promulgate administrative regulations to-establish an application fee for a construction certificate for:-(a) A nonregulated transmission line; and-(b) A carbon dioxide transmission pipeline.-(7) With respect to carbon dioxide transmission lines, within one hundred twenty (120) days of receipt of the-application or one hundred eighty (180) days if a local public information meeting is held, the boar d shall, by-majority vote, grant or deny the construction certificate either in whole or in part. Action to grant the-certificate shall be based on the board's determination that the proposed route of the pipeline will minimize-significant adverse impact o n the scenic assets of Kentucky and that the applicant will construct and maintain-the line according to all applicable legal requirements. In addition, the board may consider the interstate-benefits expected to be achieved by the proposed carbon dioxide t ransmission pipeline in the Commonwealth.-If the board determines that locating the transmission line will result in significant degradation of scenic-factors or if the board determines that locating the carbon dioxide transmission line will be in violatio n of-applicable legal requirements, the board may deny the application or condition the application's approval upon-relocation of the route of the pipeline.-Section 29. KRS 278.718 is amended to read as follows:-The provisions of KRS 278.700, 278.704, 278.706, 278.708, and 278.710 shall not supplant, any other state or federal-law, including the powers available to local governments under the provisions of home rule under KRS 67.080,-67.083, 67.850, 67.922, 67A.060, 67C.101, and 82.082. Except with regard to the minimum decommissioning bond-amount required in subsection (2)(m)5.a. of Section 26 of this Act, an ordinance, permit, or license issued by a local-government shall have primacy over the provisions and requirements of KRS 278.700, 278.704, 278.706 , and-278.708, and any conflict between an order of the board and a local ordinance, permit, or license shall be resolved in-favor of the local government's ordinance, permit, or license.-Section 30. The following KRS sections are repealed:-353.800 Definitions for KRS 353.800 to 353.812.-353.802 Legislative findings and declarations relating to geologic storage of carbon dioxide.-353.804 Jurisdiction and authority over geologic storage of carbon dioxide -- Application for and approval of-demonstration projects -- Cabinet to testify annually on program's development.-353.806 Negotiations between storage operators and pore space owners -- Hearings and findings preceding pooling-of pore space -- Carbon dioxide wells exempt -- Review under KRS 353.700.-353.808 Pooling orders -- Requirements for contents of order and notice -- Fees -- Recording of pooling orders with-county clerks -- Review under KRS 353.700.-353.810 Carbon injection wells to be closed and plugged after completion of active injection -- Monitoring for-leaking and migration -- Transfer of ownership and liability of storage facilities -- Finance and Administration-Cabinet to effect transfer.-353.812 Cabinet and bordering states to discuss and develop unified approac h to subsurface migration -- Reports to-Governor and Legislative Research Commission.-Became law without Governor's signature April 14, 2026.+Page 1 of 1+ Amend the title to read: "AN ACT relating to energy production and byproduct+management.".
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