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SB 297

AN ACT relating to natural resources.

2026 Regular Session Introduced by Phillip Wheeler

Kentucky would pursue interstate cooperation on subsurface CO2 storage, creating agreements to treat cross-border migration not as trespass, with dispute resolution, compensation,

to Committee on Committees (S)
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Bill Summary · SB 297

Summary of SB 297 (2026 Regular Session, Kentucky)

Purpose and intent

SB 297 proposes amendments related to natural resources, specifically focusing on the management and coordination of subsurface carbon dioxide (CO2) storage and potential cross-border issues. The bill aims to establish a framework for interstate cooperation with neighboring states to address subsurface CO2 migration, systematize dispute resolution and compensation for cross-border migration incidents, and enable cooperative reservoir development where geologically feasible.

Key provisions and changes

  • Interstate discussions and cooperation (new KRS 353.812 provisions):
    • The secretary of the cabinet is directed to initiate discussions with surrounding states to develop a coordinated and unified approach to subsurface CO2 migration.
    • The cabinet may enter into reciprocal agreements with bordering states that:
    • (a) Ensure that accidental or unforeseen subsurface CO2 migration across state lines is not treated as trespass by the involved states.
    • (b) Provide a mechanism for resolution and compensation for unforeseen migration incidents, including monitoring arrangements to track or halt future migration.
    • (c) Establish processes for creating cross-border reservoirs where geologically and mutually advantageous.
  • Reporting requirements:
    • The cabinet must report on progress to the Governor and the Legislative Research Commission.
    • Reports are to be delivered in writing and through testimony to the Interim Joint Committee on Natural Resources and Energy (or its environment-related counterpart) annually, unless directed otherwise by committee chairs.
    • Initial reporting obligations began as early as 2012 and continue until the cabinet determines all necessary agreements are in place and has reported that conclusion.

Who would be affected

  • State agencies: Kentucky Cabinet (Secretary) would lead interstate discussions and manage the development and implementation of agreements related to subsurface CO2 storage and cross-border issues.
  • Adjacent states: Neighboring states with shared borders would potentially participate in reciprocal agreements to address cross-border CO2 migration.
  • Geologic storage projects: Any CO2 sequestration initiatives that involve subsurface storage near state borders could be affected, particularly in terms of governance, monitoring, compensation, and cross-border reservoir development.

Procedural and timeline aspects

  • Reporting cadence: Annual progress reports are required to the Governor and Legislative Research Commission, with testimony to the specified interim committee unless otherwise directed.
  • Existing reporting timeline: The bill references reporting beginning in 2012 and continuing until agreements are finalized; this suggests a long-standing or continuing mandate to establish interstate coordination, though the current bill formalizes the ongoing process.
  • Status: Introduced in the Senate on 2026-02-27 and sent to the Committee on Committees.

Potential impact and significance

  • Promotes regional collaboration on CO2 storage governance and risk management for cross-border subsurface migration.
  • Seeks to reduce legal uncertainty by reframing cross-border migration as non-trespass when appropriate and by creating a structured mechanism for dispute resolution and compensation.
  • Encourages cooperative development of cross-border reservoirs where geologically feasible, potentially expanding strategic storage options and investment in carbon management infrastructure.

If you’d like, I can compare SB 297 to current Kentucky statutes or to similar interstate CO2 storage compacts in other states for additional context.

Compiled from official sources — confirm details with the bill’s official record.

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