LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7024 NOTE PREPARED: Jan 3, 2022
BILL NUMBER: HB 1209 BILL AMENDED:
SUBJECT: Carbon Sequestration Projects.
FIRST AUTHOR: Rep. Soliday BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides for the mechanism for underground storage of carbon dioxide
in Indiana. It makes conforming changes.
Effective Date: July 1, 2022.
Explanation of State Expenditures: The bill will increase the workload of the Department of Natural
Resources (DNR) to review and issue permits for underground carbon dioxide storage. The bill may also
increase workload for the DNR if pore space owners do not agree to integrate their interests and the DNR
intervenes. The DNR would need to make findings that the storage operator has made a good faith effort to
obtain consent of all pore space owners, that the storage operator has obtained the consent of the owners
representing at least 60% of the estimated storage volume, and that all pore space owners are equitably
compensated, before issuing an order requiring the owners to integrate their interests.
The DNR is to issue a certificate of completion if a storage operator demonstrates that certain requirements
have been met. The bill provides that after a certificate of completion is issued, the state of Indiana will
assume ownership of and responsibility for the storage facility, assume responsibility for all regulatory
requirements, and assume any potential liability associated with the storage facility. Upon issuance of a
certificate of completion, recommendation of the director of the DNR, and review by the state Budget
Committee, the state of Indiana may also obtain ownership of the carbon dioxide stored in underground
strata, formations, and pore space.
Explanation of State Revenues: The bill establishes an application fee of $1,000 for a carbon sequestration
project permit which would go to the DNR. The bill also establishes a fee of $0.08 per ton of carbon dioxide
HB 1209 1 stored which would be deposited into the new Carbon Dioxide Storage Facility Trust Fund. The fund may
be used only to defray the costs incurred by the DNR for the long term monitoring and management of a
carbon sequestration facility.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Natural Resources.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1209 2