Introduced Version SENATE BILL No. 247 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 14-39. Synopsis: Carbon sequestration. Provides that a carbon sequestration project may not be undertaken unless the project is approved by the county legislative body (for a project located in the unincorporated area of a county) or the city or town legislative body (for a project located in a city or town). Effective: July 1, 2023. Niemeyer January 11, 2023, read first time and referred to Committee on Environmental Affairs. 2023 IN 247—LS 7405/DI 150 Introduced First Regular Session of the 123rd General Assembly (2023) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2022 Regular Session of the General Assembly. SENATE BILL No. 247 A BILL FOR AN ACT to amend the Indiana Code concerning natural and cultural resources. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 14-39-1-2.7 IS ADDED TO THE INDIANA CODE 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2023]: Sec. 2.7. As used in this chapter, "legislative body" means 4 the following: 5 (1) The board of county commissioners, for a county not 6 subject to IC 36-2-3.5 or IC 36-3-1. 7 (2) The county council, for a county subject to IC 36-2-3.5. 8 (3) The city-county council, for a consolidated city or county 9 having a consolidated city. 10 (4) The common council, for a city other than a consolidated 11 city. 12 (5) The town council, for a town. 13 SECTION 2. IC 14-39-1-4, AS AMENDED BY P.L.163-2022, 14 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2023]: Sec. 4. (a) A carbon dioxide transmission pipeline 16 company may apply to the department for issuance of a carbon dioxide 17 transmission pipeline certificate of authority. The department shall 2023 IN 247—LS 7405/DI 150 2 1 prescribe the form of the application, which must: 2 (1) include a filing fee of one thousand dollars ($1,000); 3 (2) include a certified copy of an ordinance adopted by the 4 legislative body of the county or municipality that approves 5 the project; 6 (2) (3) be signed by a responsible officer of the company; 7 (3) (4) include a statement verifying that the information 8 submitted is true, accurate, and complete to the best of that 9 responsible officer's knowledge and belief; and 10 (4) (5) include all information necessary for the department to 11 find the following: 12 (A) That the applicant or the contractor or subcontractor of the 13 applicant has the financial, managerial, and technical ability 14 to construct, operate, and maintain a carbon dioxide 15 transmission pipeline in Indiana. 16 (B) That the applicant has the requisite experience 17 constructing, operating, and maintaining a transmission 18 pipeline. 19 (C) That the applicant has entered into a contract to transport 20 carbon dioxide by pipeline in Indiana with: 21 (i) at least one (1) producer of carbon dioxide located in 22 Indiana; and 23 (ii) unless all of the carbon dioxide to be transported in the 24 proposed carbon dioxide transmission pipeline is for the 25 applicant's own use or account, at least one (1) end user or 26 storer of carbon dioxide. 27 (D) That the applicant has provided documentation to the 28 department showing the proposed length, diameter, and 29 location of the proposed carbon dioxide transmission pipeline 30 in Indiana. 31 (E) That the applicant will construct, operate, and maintain the 32 proposed carbon dioxide transmission pipeline in accordance 33 with applicable local, state, and federal law, including federal 34 and state safety regulations and rules governing the 35 construction, operation, and maintenance of carbon dioxide 36 transmission pipelines, and related facilities and equipment, to 37 ensure the safety of pipeline employees and the public. 38 (F) That the applicant has: 39 (i) entered into an agreement with the Indiana utility 40 regulatory commission concerning the mitigation of 41 agricultural impacts associated with the construction of the 42 proposed carbon dioxide transmission pipeline; or 2023 IN 247—LS 7405/DI 150 3 1 (ii) signed a statement indicating that the applicant agrees to 2 use, in connection with the construction of the proposed 3 carbon dioxide transmission pipeline, the guidelines adopted 4 under IC 8-1-22.6-8 by the pipeline safety division of the 5 Indiana utility regulatory commission. 6 (b) The department shall review an application filed under 7 subsection (a). Subject to subsection (f), if the department determines 8 that the application is incomplete or inaccurate, or both, the department 9 shall return the application to the applicant, informing the applicant in 10 writing of the applicant's right to file a corrected application with the 11 department. If the department determines that the application is 12 complete and accurate, the department shall provide notice to the 13 applicant of: 14 (1) that determination; and 15 (2) the date, time, and location of the public information meeting 16 to be held under subsection (d). 17 (c) The applicant shall: 18 (1) upon receipt of a notice under subsection (b): 19 (A) place for public inspection a copy of the application in a 20 public library located in each county in which the carbon 21 dioxide transmission pipeline is proposed to be located; and 22 (B) publish notice, in the same manner that would be required 23 if the applicant were subject to IC 5-3-1, in each county in 24 which the carbon dioxide transmission pipeline is proposed to 25 be located, of: 26 (i) the name and address of each library in which a copy of 27 the application is placed under clause (A); and 28 (ii) the date, time, and location of the public information 29 meeting to be held under subsection (d); 30 (2) provide to the department proof of publication of notice under 31 subdivision (1)(B); and 32 (3) have a representative present at the public information 33 meeting held under subsection (d). 34 (d) The department shall: 35 (1) conduct a public information meeting in the county seat of one 36 (1) of the counties, as determined by the department, in which the 37 proposed carbon dioxide transmission pipeline will be located; 38 and 39 (2) provide an opportunity at the meeting for members of the 40 public to be briefed and to ask questions about the proposed 41 carbon dioxide transmission pipeline. 42 (e) Not later than ninety (90) days after the public information 2023 IN 247—LS 7405/DI 150 4 1 meeting held under subsection (d), the department shall notify the 2 applicant in writing that: 3 (1) the department: 4 (A) has made the findings described in subsection (a)(4); 5 (a)(5); and 6 (B) has approved the application; or 7 (2) the department: 8 (A) has determined that the department is unable to make the 9 findings described in subsection (a)(4); (a)(5); and 10 (B) has disapproved the application. 11 (f) The department shall process a corrected application that is filed 12 as permitted under subsection (b) in the same manner the department 13 processes an initially filed application under subsection (a). 14 (g) If the department fails to act under subsection (e) not later than 15 ninety (90) days after the public information meeting held under 16 subsection (d), the application is considered to be approved by the 17 department. 18 (h) If: 19 (1) the department approves the application under subsection 20 (e)(1); or 21 (2) the application is considered to be approved as described in 22 subsection (g); 23 the department shall issue to the applicant a carbon dioxide 24 transmission pipeline certificate of authority. 25 SECTION 3. IC 14-39-1-4.5 IS ADDED TO THE INDIANA CODE 26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 27 1, 2023]: Sec. 4.5. A carbon dioxide transmission pipeline project 28 may not be undertaken by a carbon dioxide transmission pipeline 29 company unless an ordinance approving the project has been 30 adopted by: 31 (1) the county legislative body, in the case of a project located 32 in the unincorporated area of a county; or 33 (2) the city or town legislative body, in the case of a project 34 located in a city or town. 35 SECTION 4. IC 14-39-1-5, AS ADDED BY P.L.150-2011, 36 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 37 JULY 1, 2023]: Sec. 5. (a) Except as provided in subsection (b), if a 38 carbon dioxide transmission pipeline company files with the 39 department a verified certificate stating the reasons that the designation 40 of confidential information is necessary, the carbon dioxide 41 transmission pipeline company may designate information that it 42 submits in an application to the department, or in subsequent reports, 2023 IN 247—LS 7405/DI 150 5 1 as trade secret or confidential and proprietary information. 2 (b) Subsection (a) does not apply to information referred to in 3 section 4(a)(4)(D) 4(a)(5)(D) of this chapter. 4 (c) The department shall exercise all necessary caution to avoid 5 public disclosure of confidential information designated under 6 subsection (a). 7 SECTION 5. IC 14-39-2-5, AS ADDED BY P.L.163-2022, 8 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 9 JULY 1, 2023]: Sec. 5. (a) Carbon sequestration projects are authorized 10 in Indiana for the purposes of: 11 (1) injecting carbon dioxide into the pore space of an underground 12 storage facility through at least one (1) carbon dioxide injection 13 well pursuant to a UIC Class VI permit; and 14 (2) employing the underground storage of carbon dioxide. 15 (b) A storage operator may not operate a carbon sequestration 16 project in Indiana without: 17 (1) a UIC Class VI permit; and 18 (2) a valid permit issued by the department. 19 (c) If a carbon sequestration project is owned by an entity other than 20 the storage operator, the storage operator shall be responsible for 21 obtaining a permit for a carbon sequestration project under subsection 22 (b). A permit for a carbon sequestration project may be transferred or 23 assigned from one (1) storage operator to another storage operator. 24 (d) An individual may apply to the department for a permit for a 25 carbon sequestration project in a form and manner prescribed by the 26 department. 27 (e) An application under subsection (d) must include the following: 28 (1) A filing fee of one thousand dollars ($1,000). 29 (2) The signature of the applicant. 30 (3) A statement verifying that the information submitted is true, 31 accurate, and complete to the best of applicant's knowledge. 32 (4) Information illustrating that the applicant has the financial, 33 managerial, and technical ability to construct, operate, and 34 maintain a carbon sequestration project. 35 (5) Information illustrating that the applicant or the contractors or 36 subcontractors of the applicant have the requisite expertise in 37 constructing, operating, and maintaining a carbon sequestration 38 project. 39 (6) Documentation to the department describing the scope of the 40 proposed carbon sequestration project. 41 (7) A statement describing how the applicant will construct, 42 operate, and maintain the proposed carbon sequestration project 2023 IN 247—LS 7405/DI 150 6 1 in accordance with applicable local, state, and federal law, 2 including federal and state safety regulations and rules governing 3 the construction, operation, and maintenance of the carbon 4 sequestration project, and related facilities and equipment, to 5 ensure the safety of the carbon sequestration project employees 6 and the public. 7 (8) A statement that the interests of a mineral lessee or mineral 8 owner will not be adversely affected. If a mineral owner or 9 mineral lessee is adversely affected, the adversely affected 10 mineral owner or mineral lessee and the applicant may enter into 11 an agreement under section 4 of this chapter. 12 (9) A certified copy of an ordinance adopted by the legislative 13 body of the county or municipality that approves the project. 14 SECTION 6. IC 14-39-2-5.5 IS ADDED TO THE INDIANA CODE 15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 16 1, 2023]: Sec. 5.5. A carbon dioxide underground storage project 17 may not be undertaken by a carbon dioxide transmission pipeline 18 company unless an ordinance approving the project has been 19 adopted by: 20 (1) the county legislative body, in the case of a project located 21 in the unincorporated area of a county; or 22 (2) the city or town legislative body, in the case of a project 23 located in a city or town. 2023 IN 247—LS 7405/DI 150