KY HB677

Establishes a comprehensive regulatory framework for underground carbon dioxide sequestration facilities in Kentucky, administered by the Energy and Environment Cabinet, requiring operators to obtain both a Class VI underground injection control permit and a drilling permit before construction or operation

Requires sequestration operators to secure written consent from owners of at least 75% of the proposed reservoir's pore space acreage, with the cabinet authorized to issue pooling orders for up to 25% of nonconsenting, unknown, or missing pore space owners who must receive just and reasonable compensation

Creates two state funds: a Carbon Dioxide Sequestration Facility Administrative Fund for permit processing and regulatory costs, and a Carbon Dioxide Sequestration Facility Trust Fund funded by per-ton injection fees for long-term monitoring, emergency response, and post-closure management

Transfers ownership of stored carbon dioxide to the Commonwealth upon issuance of a completion certificate (available 50 years after injection ends or on a site-specific timeline), at which point the state assumes monitoring responsibility and releases operators from regulatory liability

Repeals existing KRS sections 353.800-353.812 on geologic carbon storage and replaces them with detailed provisions covering financial responsibility requirements, enforcement procedures, permit eligibility criteria, public notice requirements, and protections for mineral owners and surface owners