KRS 353.459: Authority of cabinet to seek federal approval of regulatory program and

responsibility for underground injection control -- Administrative regulations

-- Requirements.

(1) In addition to the powers conferred upon the cabinet in other provisio ns of KRS

353.411 to 353.459, 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, measur es to protect underground sources of

drinking water and to prevent their endangerment;

(b) A prohibition of underground injection through Class VI wells, except as

authorized by 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 and transfer permits;

4. Comprehensive monitoring that addresses all aspects of w ell 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 the site operations and ensure environmental protection;

(d) The criteria for reviewing compliance with eligibility requirements in KRS

353.417(12) 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 KRS 353.437;

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

closing all Class VI underground injection control wells. The

demonstration of financial responsibility may include but is not limited

to the qualifying instruments required by KRS 353.417;

(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 applicants and operators. The fees shall

cover all costs to the cabinet for adminis tering 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 drilli ng 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 cont rol 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 KRS 353.411 to 353.459

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.

(4) (a) Any order or final determination of the cabinet that is issued pursuant to KRS

353.411 to 353.459 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" includes 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.