*HB1579.2*
February 6, 2025
HOUSE BILL No. 1579
_____
DIGEST OF HB 1579 (Updated February 5, 2025 4:53 pm - DI 134)
Citations Affected: IC 14-39.
Synopsis: Carbon sequestration. Amends the Indiana Code chapter
governing eminent domain for the pipeline transportation or
underground storage of carbon dioxide as follows: (1) Defines a
"carbon dioxide transmission pipeline company" (company) for
purposes of the chapter. (2) Specifies that a company that seeks to
construct, operate, and maintain a carbon dioxide transmission pipeline
in Indiana must apply to the department of natural resources
(department) for a carbon dioxide transmission pipeline certificate of
authority (certificate). (3) Provides an exemption from the requirement
to obtain a certificate under certain circumstances based on the route
of the pipeline and the location of the surface property. (4) Requires the
department to deposit filing fees for certificate applications in the
carbon sequestration project program administrative fund (instead of
in the oil and gas environmental fund, under current law) established
by the bill's provisions. Amends the Indiana Code chapter governing
the underground storage of carbon dioxide as follows: (1) Amends the
definition of "UIC Class VI permit" to specify that the term means a
permit that allows specified entities to construct or operate (instead of
operate, under current law) a carbon dioxide injection well. (2)
Provides that the department may issue an involuntary order requiring
(Continued next page)
Effective: July 1, 2025.
Soliday
January 21, 2025, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
January 29, 2025, reported — Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 126.3.
February 6, 2025, amended, reported — Do Pass.
HB 1579—LS 7427/DI 101 Digest Continued
two or more pore space owners to integrate their interests to develop an
underground carbon dioxide storage facility if the department finds that
a storage operator has filed a complete application for a UIC Class VI
permit with the United States Environmental Protection Agency.
(Current law requires the department to find that a storage operator has
been issued a UIC Class VI permit.) (3) Provides that the filing fee for
an application for a permit for a carbon sequestration project (project)
is to be: (A) determined based on the metric tons of carbon dioxide
proposed to be injected into the storage facility during the first 10 years
of the project's operation; and (B) deposited in the carbon sequestration
project program administrative fund (administrative fund) established
by the bill's provisions. (Current law provides for a flat $1,000 filing
fee.) (4) Makes technical changes to provisions governing: (A) the
department's review of submitted applications for projects; and (B) the
designation of information as confidential. (5) Requires a storage
operator to pay two fees, not later than March 1 of each year, to the
department for the amount of carbon dioxide injected for storage
during the immediately preceding calendar year. (Current law requires
a storage operator to pay one annual fee for the amount of carbon
dioxide injected, based on a prior estimate of the amount to be injected
that is made at the time of application for a permit.) (6) Redesignates
the "carbon dioxide storage facility trust fund" as the "carbon dioxide
storage facility fund", removes the requirement that the fund must be
maintained as a special fund, and provides that annual appropriations
from the fund to the department are subject to review by the budget
committee. (7) Establishes the administrative fund for the purpose of
defraying the department's administrative costs in managing and
operating the carbon sequestration project program (program) and
annually appropriates to the department from the fund an amount
sufficient to defray costs, subject to review by the budget committee.
(8) Prohibits a person from: (A) drilling or operating a nonproduction
well to investigate the suitability of underground formations for carbon
sequestration; or (B) converting a well for oil and gas purposes (as
defined in the Indiana Code) for use in carbon dioxide investigations;
without a permit and establishes procedures by which a person may
apply for and the department may issue a permit. (9) Provides that once
the department has issued a certificate of completion for a project, the
department may, with advance notice to the surface property owner,
enter property on which an injection well or monitoring well for the
storage facility is located to inspect or maintain the well or storage
facility. (10) Provides that the state may assume ownership and accept
transfer of a storage facility for which an interest in or rights to
property are conveyed by a lease only if the lessor and lessee agree in
the lease agreement to transfer the storage facility to the state. (11)
Requires the department to report to the budget committee not later
than: (A) July 1, 2030; and (B) July 1, 2035; the amounts collected and
the costs incurred by the department in administering the program. (12)
Provides that a person that violates the statutes governing the pipeline
transportation or underground storage of carbon dioxide is subject to
specified civil penalties and cessation orders issued by the department.
HB 1579—LS 7427/DI 101HB 1579—LS 7427/DI 101 February 6, 2025
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1579
A BILL FOR AN ACT to amend the Indiana Code concerning
natural and cultural resources and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 14-39-1-2.1 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 2.1. As used in this chapter, "carbon dioxide
4 transmission pipeline company" means a person (as defined in
5 IC 14-8-2-202 and section 2.6 of this chapter) that is:
6 (1) issued a carbon dioxide transmission certificate of
7 authority by the department under this chapter; or
8 (2) exempt under section 4.5 of this chapter from the
9 requirement to obtain a carbon dioxide transmission
10 certificate of authority from the department under this
11 chapter.
12 SECTION 2. IC 14-39-1-4, AS AMENDED BY P.L.163-2022,
13 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 4. (a) A carbon dioxide transmission pipeline
15 company may that seeks to construct, operate, and maintain a
HB 1579—LS 7427/DI 101 2
1 carbon dioxide transmission pipeline in Indiana must apply to the
2 department for issuance of a carbon dioxide transmission pipeline
3 certificate of authority. The department shall prescribe the form of the
4 application, which must:
5 (1) include a filing fee of one thousand dollars ($1,000);
6 (2) be signed by a responsible officer of the company;
7 (3) include a statement verifying that the information submitted
8 is true, accurate, and complete to the best of that responsible
9 officer's knowledge and belief; and
10 (4) include all information necessary for the department to find
11 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 or the contractor or subcontractor of
17 the applicant has the requisite experience constructing,
18 operating, and maintaining a transmission 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
HB 1579—LS 7427/DI 101 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
HB 1579—LS 7427/DI 101 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); and
5 (B) has approved the application; or
6 (2) the department:
7 (A) has determined that the department is unable to make the
8 findings described in subsection (a)(4); and
9 (B) has disapproved the application.
10 (f) The department shall process a corrected application that is filed
11 as permitted under subsection (b) in the same manner the department
12 processes an initially filed application under subsection (a).
13 (g) If the department fails to act under subsection (e) not later than
14 ninety (90) days after the public information meeting held under
15 subsection (d), the application is considered to be approved by the
16 department.
17 (h) If:
18 (1) the department approves the application under subsection
19 (e)(1); or
20 (2) the application is considered to be approved as described in
21 subsection (g);
22 the department shall issue to the applicant a carbon dioxide
23 transmission pipeline certificate of authority.
24 SECTION 3. IC 14-39-1-4.5 IS ADDED TO THE INDIANA CODE
25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
26 1, 2025]: Sec. 4.5. A carbon dioxide transmission pipeline company
27 is not required to obtain a carbon dioxide transmission certificate
28 of authority under section 4 of this chapter if either of the following
29 applies:
30 (1) The carbon dioxide transmission pipeline to be constructed
31 and operated:
32 (A) begins and ends on the surface property above the
33 storage facility; and
34 (B) does not cross:
35 (i) public property;
36 (ii) a public right-of-way; or
37 (iii) a parcel for which there is an existing easement or
38 for which an easement is required.
39 (2) The surface property above the storage facility crosses
40 only one (1) or more of the following:
41 (A) A parcel that has an existing private easement.
42 (B) A parcel for which a private easement is required.
HB 1579—LS 7427/DI 101 5
1 (C) A private right-of-way.
2 SECTION 4. IC 14-39-1-12, AS ADDED BY P.L.150-2011,
3 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 12. The department shall deposit fee revenue
5 received under section 4(a)(1) of this chapter in the oil and gas
6 environmental carbon sequestration project program
7 administrative fund established by IC 14-37-10-2. IC 14-39-2-10.5.
8 SECTION 5. IC 14-39-2-2, AS ADDED BY P.L.163-2022,
9 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 2. (a) The following definitions apply throughout
11 this chapter.
12 (b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
13 (c) "Carbon dioxide injection well" refers to a well that is used to
14 inject carbon dioxide into a reservoir for carbon sequestration pursuant
15 to a UIC Class VI permit.
16 (d) "Carbon dioxide plume" means the extent of an underground
17 three-dimensional injected carbon dioxide stream.
18 (e) "Carbon sequestration" means the underground storage of carbon
19 dioxide in a reservoir.
20 (f) "Carbon sequestration project" means any project that involves
21 the underground storage of carbon dioxide in a reservoir pursuant to at
22 least one (1) UIC Class VI permit.
23 (g) "Mineral lessee" means a lessee identified by the records of the
24 recorder of deeds for each county containing a portion of the proposed
25 reservoir who holds an interest in minerals on real property that are
26 located above, below, or within the proposed reservoir that has been
27 severed from the surface estate by:
28 (1) grant;
29 (2) exception;
30 (3) reservation;
31 (4) lease; or
32 (5) any other means.
33 (h) "Mineral owner" means an owner identified by the records of the
34 recorder of deeds for each county containing a portion of the proposed
35 reservoir who holds an interest in minerals on real property that are
36 located above, below, or within the proposed reservoir that has been
37 severed from the surface estate by:
38 (1) grant;
39 (2) exception;
40 (3) reservation;
41 (4) lease; or
42 (5) any other means.
HB 1579—LS 7427/DI 101 6
1 (i) "Pore space" means subsurface cavities or voids that can be used
2 as a storage space for carbon dioxide.
3 (j) "Pore space owner" means:
4 (1) a person;
5 (2) a trust;
6 (3) a corporation; or
7 (4) another entity;
8 that has title to, a right to, or an interest in pore space.
9 (k) "Reservoir" means a subsurface:
10 (1) sedimentary stratum;
11 (2) formation;
12 (3) aquifer;
13 (4) cavity; or
14 (5) void;
15 that is naturally or artificially created for the use of, or is capable of
16 being made suitable for, injecting and storing carbon dioxide.
17 (l) "Storage facility" means the subsurface area consisting of the
18 extent of a carbon dioxide plume which is required to be delineated on
19 an approved UIC Class VI permit or an amendment to a UIC Class VI
20 permit of a storage operator.
21 (m) "Storage operator" means:
22 (1) a person;
23 (2) a trust;
24 (3) a corporation; or
25 (4) another entity;
26 that operates a carbon sequestration project.
27 (n) "Surface or subsurface property interest owner" means a
28 property interest owner identified by the records of the recorder of
29 deeds for each county containing a portion of the proposed storage
30 facility who holds a fee simple interest or other freehold interest in the
31 surface or subsurface of the property, which may include mineral
32 rights. The term does not include the owner of a right-of-way, an
33 easement, or a leasehold.
34 (o) "UIC Class VI permit" means a permit issued under the federal
35 Safe Drinking Water Act's Underground Injection Control program that
36 allows:
37 (1) a person;
38 (2) a trust;
39 (3) a corporation; or
40 (4) another entity;
41 to construct or operate a carbon dioxide injection well.
42 (p) "Underground storage of carbon dioxide" means the injection
HB 1579—LS 7427/DI 101 7
1 and storage of carbon dioxide into underground strata and formations
2 pursuant to at least one (1) UIC Class VI permit.
3 SECTION 6. IC 14-39-2-4, AS ADDED BY P.L.163-2022,
4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 4. (a) If at least two (2) pore space owners own
6 pore space located within a proposed carbon dioxide storage area of a
7 storage facility, the owners may agree to integrate their interests to
8 develop the pore space as a proposed storage facility for the
9 underground storage of carbon dioxide.
10 (b) If all of the owners of the pore space under subsection (a) do not
11 agree to integrate their interests, the department may issue an order
12 requiring the owners to integrate their interests and to develop the pore
13 space as a proposed storage facility for the underground storage of
14 carbon dioxide to serve the public interest, prevent waste, protect
15 correlative rights, and facilitate the efficient and effective use of
16 natural resources, subject to the findings under subsection (c).
17 (c) Before issuing an order under subsection (b), the department
18 must make the following findings:
19 (1) That a storage operator has been issued filed a complete
20 application for:
21 (A) a UIC Class VI permit; or
22 (B) an amended UIC Class VI permit;
23 that the United States Environmental Protection Agency has
24 determined contains all the information necessary to process
25 the application.
26 (2) That the storage operator has made a good faith effort to
27 obtain the consent of all pore space owners located within the
28 proposed storage facility.
29 (3) That the storage operator has obtained the consent of the
30 owners of the pore space underlying at least seventy percent
31 (70%) of the surface area above the proposed storage facility or
32 amended proposed storage facility.
33 (4) That all pore space owners who do not agree to integrate their
34 interests to develop the pore space as a proposed storage facility
35 for the underground storage of carbon dioxide are equitably
36 compensated.
37 (d) A right to pore space granted by this section does not confer a
38 right to enter upon, or otherwise use, the surface of the land which is
39 integrated under this section unless provided in an order requiring the
40 owners to integrate their interests and to develop the pore space as a
41 proposed storage facility for the underground storage of carbon
42 dioxide.
HB 1579—LS 7427/DI 101 8
1 (e) An involuntary integration order issued by the department
2 under this section takes effect fifteen (15) days after the storage
3 operator is issued:
4 (1) a UIC Class VI permit; or
5 (2) an amended UIC Class VI permit;
6 as applicable.
7 SECTION 7. 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, 2025]: 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 is 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). determined as
29 follows:
30 STEP ONE: Determine the amount in metric tons of
31 carbon dioxide proposed to be injected into the storage
32 facility during the first ten (10) years of operation of the
33 carbon sequestration project.
34 STEP TWO: Multiply the STEP ONE result by one cent
35 ($0.01).
36 The filing fee amount determined under STEP TWO shall be
37 collected by the department and deposited in the carbon
38 sequestration project program administrative fund
39 established by section 10.5 of this chapter.
40 (2) The signature of the applicant.
41 (3) A statement verifying that the information submitted is true,
42 accurate, and complete to the best of applicant's knowledge.
HB 1579—LS 7427/DI 101 9
1 (4) Information illustrating that the applicant has the financial,
2 managerial, and technical ability to construct, operate, and
3 maintain a carbon sequestration project.
4 (5) Information illustrating that the applicant or the contractors or
5 subcontractors of the applicant have the requisite expertise in
6 constructing, operating, and maintaining a carbon sequestration
7 project.
8 (6) Documentation to the department describing the scope of the
9 proposed carbon sequestration project.
10 (7) A statement describing how the applicant will construct,
11 operate, and maintain the proposed carbon sequestration project
12 in accordance with applicable local, state, and federal law,
13 including federal and state safety regulations and rules governing
14 the construction, operation, and maintenance of the carbon
15 sequestration project, and related facilities and equipment, to
16 ensure the safety of the carbon sequestration project employees
17 and the public.
18 (8) A statement that the interests of a mineral lessee or mineral
19 owner will not be adversely affected. If a mineral owner or
20 mineral lessee is adversely affected, the adversely affected
21 mineral owner or mineral lessee and the applicant may enter into
22 an agreement under section 4 of this chapter.
23 (f) If a greater number of metric tons of carbon dioxide are
24 injected into the storage facility for a carbon sequestration project
25 during the first ten (10) years of operation of the project than the
26 number of metric tons proposed in the application for the project
27 under subsection (e)(1), the storage operator shall pay to the
28 department the difference between:
29 (1) the amount of the filing fee calculated under subsection
30 (e)(1) based on the actual metric tons of carbon dioxide
31 injected into the storage facility during the first ten (10) years
32 of operation of the carbon sequestration project; minus
33 (2) the amount of the filing fee submitted to the department
34 with the application under subsection (e)(1).
35 (g) A filing fee paid under this section is not refundable by the
36 department.
37 SECTION 8. IC 14-39-2-6, AS ADDED BY P.L.163-2022,
38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 6. (a) The department shall review an application
40 submitted under section 5(d) of this chapter. If the department
41 determines that the application submitted under section 5(d) of this
42 chapter is complete, the department shall notify the applicant.
HB 1579—LS 7427/DI 101 10
1 (b) The department shall return an application to the applicant if the
2 department determines that the application is incomplete, inaccurate,
3 or both.
4 (c) If the department returns an application to an applicant under
5 subsection (b), the department shall inform the applicant in writing that
6 the applicant may file a corrected application not more than sixty (60)
7 days after the receipt of the returned application.
8 (d) Upon receiving a corrected complete application under this
9 section, the department shall review the application.
10 (e) Upon receiving notification that the corrected an application is
11 complete, the applicant shall:
12 (1) not more than sixty (60) days after receiving the notice under
13 this subsection:
14 (A) place for public inspection a copy of the corrected
15 application in a public library located in each county in which
16 the carbon sequestration project is proposed to be located; for
17 public inspection;
18 (B) publish notice under IC 5-3-1 in each county in which the
19 carbon sequestration project is proposed to be located a notice
20 of the name and address of each library in which a copy of the
21 corrected application is placed as required by clause (A); and
22 (C) provide notice to potentially affected parties pursuant to
23 312 IAC 29-5-2; under rules adopted by the commission for
24 carbon sequestration projects; and
25 (2) provide to the department proof of publication of notice under
26 this subsection not more than thirty (30) days after the publication
27 or delivery of the notice.
28 (f) Not later than ninety (90) days after receiving the proof of
29 publication of notice under subsection (e), the department shall notify
30 the applicant in writing that:
31 (1) the department has approved the application; or
32 (2) the department has denied the application.
33 SECTION 9. IC 14-39-2-7, AS ADDED BY P.L.163-2022,
34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 7. If the department approves an application under
36 section 5 of this chapter or a corrected application under section 6(c)
37 6 of this chapter, the department shall issue to the applicant a carbon
38 sequestration project permit.
39 SECTION 10. IC 14-39-2-8, AS ADDED BY P.L.163-2022,
40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2025]: Sec. 8. (a) Except as provided in subsection (b), If a
42 storage operator or an applicant files with the department a verified
HB 1579—LS 7427/DI 101 11
1 statement to the department stating the reasons that the designation of
2 information as confidential is necessary, the storage operator or
3 applicant may designate information that it submits in an
4 application or in subsequent reports as a trade secret or confidential
5 and proprietary information. should be disclosed, the storage operator
6 or applicant may disclose the trade secret or confidential and
7 proprietary information to the department, or in subsequent reports.
8 (b) The department shall take all necessary precautions to avoid
9 public disclosure of confidential information under subsection (a).
10 SECTION 11. IC 14-39-2-9, AS ADDED BY P.L.163-2022,
11 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 9. (a) A storage operator shall pay the department
13 a fee the fees described in subsections (b) and (c) for every metric
14 ton of carbon dioxide injected for storage.
15 (b) The storage operator shall provide the department with an
16 estimate of the amount of carbon dioxide to be injected into a storage
17 facility for the period of the permit at the time of application for a
18 carbon sequestration project permit.
19 (c) (b) Not later than March 1 of each year, a storage operator
20 shall pay annually to the department a fee of eight cents ($0.08) per
21 metric ton of carbon dioxide estimated to be injected into a the storage
22 facility during the immediately preceding calendar year. The
23 department shall deposit the fee in the carbon dioxide storage
24 facility fund established by section 10 of this chapter.
25 (d) A storage operator shall reconcile the previous calendar year's
26 payment with the volume of carbon dioxide actually injected into the
27 storage facility the previous calendar year. The storage operator shall
28 submit payment for the amount of carbon dioxide injected into a
29 storage facility less the amount paid the previous calendar year.
30 (e) The department shall refund a storage operator any overpayment
31 in the current year from the previous calendar year.
32 (c) Not later than March 1 of each year, a storage operator shall
33 pay to the department a fee that is based on the amount of carbon
34 dioxide injected into the storage facility during the immediately
35 preceding calendar year and that is determined as follows:
36 STEP ONE: Determine the number of metric tons of carbon
37 dioxide that were injected into the storage facility during the
38 just ended calendar year.
39 STEP TWO: Multiply the number determined in STEP ONE
40 by five cents ($0.05).
41 The department shall deposit the fee in the carbon sequestration
42 project program administrative fund established by section 10.5 of
HB 1579—LS 7427/DI 101 12
1 this chapter.
2 SECTION 12. IC 14-39-2-10, AS ADDED BY P.L.163-2022,
3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 10. (a) The carbon dioxide storage facility trust
5 fund is established for the purpose of defraying the costs incurred
6 by the department for the long term monitoring and management
7 of, including the monitoring and management of the safety of, a
8 carbon sequestration project. The fund shall be administered by
9 the department.
10 (b) The fee collected fund consists of the following:
11 (1) Fees deposited in the fund by the department under section
12 9 9(b) of this chapter. must be deposited in the carbon dioxide
13 storage facility trust fund established by subsection (a).
14 (2) Civil penalties deposited in the fund by the department
15 under IC 14-39-3-6.
16 (3) Money deposited in or distributed to the fund under this
17 chapter.
18 (4) Money received from any other source, including
19 appropriations.
20 (c) The carbon dioxide storage facility trust fund must be
21 maintained as a special fund and all money in the fund is appropriated
22 and may be used only to defray the costs incurred by the department for
23 the long term monitoring and management of a carbon sequestration
24 project.
25 (c) The expenses of administering the fund shall be paid from
26 money in the fund.
27 (d) The treasurer of state shall invest the money in the fund not
28 currently needed to meet the obligations of the fund in the same
29 manner as other public money may be invested. Interest that
30 accrues from these investments shall be deposited in the fund.
31 (e) Money in the fund at the end of a state fiscal year does not
32 revert to the state general fund.
33 (f) There is annually appropriated to the department from the
34 fund an amount sufficient for the department to carry out the
35 purposes of this article, subject to review by the budget committee.
36 SECTION 13. IC 14-39-2-10.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. (a) The carbon
39 sequestration project program administrative fund is established
40 for the purpose of defraying the cost of administrative expenses
41 incurred by the department to manage and operate the carbon
42 sequestration project program. The fund shall be administered by
HB 1579—LS 7427/DI 101 13
1 the department.
2 (b) The fund consists of the following:
3 (1) Fees deposited in the fund by the department under
4 IC 14-39-1-4(a)(1) and section 9(c) of this chapter.
5 (2) Money deposited in or distributed to the fund under this
6 chapter.
7 (3) Money received from any other source, including
8 appropriations.
9 (c) The expenses of administering the fund shall be paid from
10 money in the fund.
11 (d) The treasurer of state shall invest the money in the fund not
12 currently needed to meet the obligations of the fund in the same
13 manner as other public money may be invested. Interest that
14 accrues from these investments shall be deposited in the fund.
15 (e) Money in the fund at the end of a state fiscal year does not
16 revert to the state general fund.
17 (f) There is annually appropriated to the department from the
18 fund an amount sufficient to defray the cost of administrative
19 expenses incurred by the department to manage and operate the
20 carbon sequestration project program, subject to review by the
21 budget committee.
22 SECTION 14. IC 14-39-2-11, AS ADDED BY P.L.163-2022,
23 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2025]: Sec. 11. (a) A mineral owner or mineral lessee shall
25 provide written notice to a storage operator at least thirty-one (31) days
26 prior to drilling a well if the mineral owner or mineral lessee wishes to
27 drill a well not more than:
28 (1) three hundred thirty (330) feet from the surface location of a
29 well pursuant to a UIC Class VI permit; or
30 (2) five hundred (500) feet from the uppermost confining zone of
31 a carbon sequestration facility within the boundary of the
32 storage facility pursuant to a UIC Class VI permit.
33 Drilling permitted by this subsection must be conducted in cooperation
34 with a storage operator.
35 (b) A well drilled under subsection (a) must be drilled in
36 compliance with the requirements of:
37 (1) the department to preserve the integrity of the storage facility;
38 (2) a UIC Class VI permit; and
39 (3) any other applicable regulations.
40 SECTION 15. IC 14-39-2-11.5 IS ADDED TO THE INDIANA
41 CODE AS A NEW SECTION TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) A person may not:
HB 1579—LS 7427/DI 101 14
1 (1) drill, deepen, or operate a nonproduction well to
2 investigate and obtain data on geological, structural, or
3 hydrogeologic stratigraphic intervals to determine the
4 suitability of underground formations for carbon
5 sequestration; or
6 (2) convert a well for oil and gas purposes (as defined in
7 IC 14-8-2-317) for carbon dioxide investigations;
8 without first obtaining a permit issued by the department under
9 this section.
10 (b) An application for a permit under this section shall be in the
11 form and manner prescribed by the department and must include
12 the following:
13 (1) The name, address, telephone number, and electronic mail
14 address of the applicant.
15 (2) The signature of:
16 (A) the applicant; or
17 (B) the operator, as identified in the application.
18 (3) An identification of the plat of land where, or any lease
19 under which, the well will be located, along with a description
20 of the property boundaries, lease lines, and storage area tract
21 boundaries, including the acreage within the tract, as
22 applicable.
23 (4) The location of the proposed well as certified by a
24 professional surveyor registered under IC 25-21.5.
25 (5) The surface elevation of the proposed well and the method
26 used to determine the elevation.
27 (6) The depth of the proposed well.
28 (7) Proof of a surface use agreement executed by the applicant
29 and the surface owner, including a provision specifying that
30 in acting as authorized under a permit issued by the
31 department under this section, the operator does not commit
32 trespass with respect to the subsurface estate in any case in
33 which the subsurface estate is separate from the surface
34 estate.
35 (8) Any other information required by the department as
36 necessary to administer this section.
37 (c) An applicant shall submit the following with an application
38 for a permit under this section:
39 (1) For each well included in the application, a cash bond of
40 ten dollars ($10) for each foot of well depth.
41 (2) A permit fee of two hundred fifty dollars ($250) payable to
42 the department.
HB 1579—LS 7427/DI 101 15
1 The department shall deposit all amounts collected under this
2 subsection in the carbon sequestration project program
3 administrative fund established by section 10.5 of this chapter.
4 (d) Except as provided in subsection (e), the department shall
5 issue a permit under this section not later than fifteen (15) days
6 after the applicant:
7 (1) demonstrates compliance with all relevant:
8 (A) provisions of this article; and
9 (B) rules adopted under this article;
10 as determined by the department and to the extent not
11 otherwise waived by the department; and
12 (2) submits a complete permit application under this section
13 to the department.
14 A permit issued under this section does not convey to the holder a
15 property right or an exclusive privilege.
16 (e) The department may deny a permit under this section if the
17 applicant, or an officer, partner, or director of the applicant:
18 (1) either:
19 (A) is in violation of this article at the time of the
20 application; or
21 (B) would be in violation of this article if the permit were
22 issued; or
23 (2) has demonstrated in the past a pattern of willful violations
24 of this article.
25 (f) The department shall incorporate in a permit issued under
26 this section those terms, conditions, and covenants that the
27 department considers necessary to protect the public interest.
28 (g) A person issued a permit under this section shall do the
29 following:
30 (1) Comply with the conditions of the permit to the
31 satisfaction of the department.
32 (2) Correct any adverse environmental impact that results
33 from noncompliance with the permit.
34 (3) Provide for the proper operation and maintenance of all:
35 (A) facilities;
36 (B) treatment systems; and
37 (C) control and related appurtenances;
38 that are installed or used by the person to comply with the
39 permit conditions.
40 (h) Except as provided in subsection (i), a permit issued under
41 this section with respect to a particular well remains effective until
42 any of the following occurs:
HB 1579—LS 7427/DI 101 16
1 (1) The well is plugged and abandoned.
2 (2) The well is converted to another type of well.
3 (3) The permit is revoked by the department under subsection
4 (j).
5 (i) A permit issued by the department under this section expires
6 one (1) year after the date of issuance if the drilling of a well for
7 which the permit has been issued has not commenced within that
8 time.
9 (j) The department may revoke a permit issued under this
10 section if the department determines that:
11 (1) a pattern of violations of the requirements of:
12 (A) this section;
13 (B) rules adopted under subsection (o); or
14 (C) permit conditions;
15 exists or has existed; and
16 (2) the violations:
17 (A) are caused by the permit holder's unwarranted failure
18 to comply (as defined in IC 14-34-15-7) with:
19 (i) the requirements of this section;
20 (ii) rules adopted under subsection (o); or
21 (iii) permit conditions; or
22 (B) are willfully caused by the permit holder.
23 (k) Subject to subsection (l), a person holding a permit under
24 this section shall plug and abandon a well that is no longer
25 operating under the permit unless the well is converted to a carbon
26 dioxide injection or monitoring well under a UIC Class VI permit.
27 (l) A person holding a permit under this section may defer
28 plugging and abandoning the well while an application is pending
29 to convert the well to a UIC Class VI carbon dioxide injection or
30 monitoring well, as long as the well is temporarily capped and
31 maintained in the manner prescribed by the department in the
32 permit.
33 (m) After a well is plugged and either abandoned or transferred,
34 the applicant that paid the bond under subsection (c)(1) may
35 request a total or partial bond release from the department. The
36 director of the division of reclamation shall either:
37 (1) release the bond as requested; or
38 (2) deny the bond release.
39 (n) A determination by the department, including a
40 determination to revoke a permit under subsection (j), is subject to
41 review and appeal under IC 4-21.5.
42 (o) The commission may adopt rules under IC 4-22-2 to
HB 1579—LS 7427/DI 101 17
1 implement this section.
2 SECTION 16. IC 14-39-2-13, AS ADDED BY P.L.163-2022,
3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 13. (a) A certificate of project completion shall be
5 issued upon the application from by the storage operator if the
6 department finds that the storage operator does the following:
7 (1) The storage operator is in compliance with all applicable laws
8 governing the storage facility.
9 (2) The storage operator shows that the storage facility is
10 reasonably expected to retain the carbon dioxide stored therein.
11 in the storage facility.
12 (3) The storage operator shows that the carbon dioxide in the
13 storage facility is stable by showing that either:
14 (A) the stored carbon dioxide is essentially stationary; or
15 (B) if the stored carbon migrates, the migration will be is
16 unlikely to cross the boundaries of the storage facility.
17 (4) The storage operator shows that all wells, equipment, and
18 facilities used after the closure period are in good condition and
19 retain mechanical integrity.
20 (5) The storage operator shows that injection wells have been
21 plugged.
22 (6) The storage operator shows that equipment and facilities, not
23 including fixed structures and long term monitoring equipment
24 and wells, have been removed.
25 (7) The storage operator proves that the reclamation work
26 required by the department where the project ceases to inject
27 carbon dioxide is completed.
28 (8) The following with respect to site closure:
29 (A) The storage operator has provided a notice of intent for
30 site closure to the United States Environmental Protection
31 Agency.
32 (B) The United States Environmental Protection Agency has
33 authorized site closure.
34 (C) The storage operator has provided: to the United States
35 Environmental Protection Agency:
36 (i) the site closure report required under 40 CFR 146.93(f)
37 (as in effect January 1, 2022) to the United States
38 Environmental Protection Agency; or
39 (ii) a comparable report to the state regulatory body if the
40 state assumes primacy for UIC Class VI permitting.
41 (b) The department shall issue a certificate of project completion not
42 later than one hundred eighty (180) days after receiving an application
HB 1579—LS 7427/DI 101 18
1 from the storage operator. If the department determines that the
2 application for a certificate of project completion is incomplete,
3 inaccurate, or both, the department shall return the application to the
4 storage operator.
5 (c) If the department returns the application to the storage operator
6 under subsection (b), the department shall inform the storage operator,
7 in writing, of the deficiencies of the submitted application and inform
8 the storage operator of the right to file a corrected application with the
9 department.
10 (d) Once a certificate of completion is issued, the following occurs:
11 apply:
12 (1) Except as provided in subsection (e), the state will assume
13 ownership of and responsibility for the storage facility.
14 (2) The state will assume responsibility for all regulatory
15 requirements associated with the storage facility, and the storage
16 operator and the owner of the storage facility are released from
17 responsibility for all regulatory requirements associated with the
18 storage facility.
19 (3) The state will assume any potential liability associated with
20 the storage facility.
21 (4) The department may, at a reasonable time, enter property
22 on which a carbon dioxide injection well or monitoring well
23 for the storage facility is located to inspect or maintain the
24 well or storage facility. Except in the case of an emergency,
25 the department shall provide advance notice to the owner of
26 the surface property of the date the department intends to
27 enter the property. The notice required by this subdivision
28 must be provided at least five (5) business days before the date
29 of the planned entry and must be delivered by:
30 (A) United States mail;
31 (B) private courier;
32 (C) personal delivery; or
33 (D) any other manner agreed to in writing by the
34 department and the owner of the surface property.
35 (e) The state may:
36 (1) assume ownership of and responsibility for; or
37 (2) accept transfer of;
38 a storage facility with respect to which an interest in or rights to
39 property are conveyed by a lease agreement only if the lessor and
40 lessee agree in the lease agreement to transfer the storage facility
41 to the state. In a transfer described in this subsection, the state
42 assumes ownership of and responsibility for the storage facility
HB 1579—LS 7427/DI 101 19
1 only and does not assume any other ownership interest,
2 responsibility, or liability under any other provisions of the lease
3 agreement.
4 (e) (f) Unless there is documentation to the contrary, the storage
5 operator has title to the carbon dioxide injected into and stored in a
6 storage facility, and the storage operator holds title until the department
7 issues a certificate of completion.
8 SECTION 17. IC 14-39-2-15 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2025]: Sec. 15. (a) Not later than July 1,
11 2030, the department shall submit to the budget committee a
12 report that sets forth the following information:
13 (1) Amounts collected by the department under this chapter
14 during the period:
15 (A) beginning January 1, 2025; and
16 (B) ending December 31, 2029.
17 (2) Costs incurred by the department to administer the
18 carbon sequestration project program under this chapter
19 during the period:
20 (A) beginning January 1, 2023; and
21 (B) ending December 31, 2029.
22 (3) Projections as to:
23 (A) amounts the department anticipates collecting under
24 this chapter; and
25 (B) costs to the department to administer the carbon
26 sequestration project program under this chapter;
27 during the period beginning January 1, 2030, and ending
28 December 31, 2034.
29 (b) Not later than July 1, 2035, the department shall submit to
30 the budget committee a report that sets forth the following
31 information:
32 (1) Amounts collected by the department under this chapter
33 during the period:
34 (A) beginning January 1, 2030; and
35 (B) ending December 31, 2034.
36 (2) Costs incurred by the department to administer the
37 carbon sequestration project program under this chapter
38 during the period:
39 (A) beginning January 1, 2030; and
40 (B) ending December 31, 2034.
41 (3) Projections as to:
42 (A) amounts the department anticipates collecting under
HB 1579—LS 7427/DI 101 20
1 this chapter; and
2 (B) costs to the department to administer the carbon
3 sequestration project program under this chapter;
4 during the period beginning January 1, 2035, and ending
5 December 31, 2039.
6 (4) A recommendation, based on the information provided
7 under subsection (a) and this subsection, as to the amount of
8 any adjustment to fees under this chapter necessary to ensure
9 the financial viability of the carbon sequestration project
10 program.
11 (c) This section expires January 1, 2040.
12 SECTION 18. IC 14-39-3 IS ADDED TO THE INDIANA CODE
13 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]:
15 Chapter 3. Violations and Penalties
16 Sec. 1. A person that violates a permit or other requirement
17 under this article, including rules adopted under this article, is
18 subject to a civil penalty under this chapter.
19 Sec. 2. Except as provided in section 4 of this chapter, a person
20 that violates a permit or other requirement under this article,
21 including rules adopted under this article, shall pay to the
22 department a civil penalty as follows:
23 (1) One thousand dollars ($1,000) for a first violation.
24 (2) Five thousand dollars ($5,000) for a second violation.
25 (3) Ten thousand dollars ($10,000) for a third and each
26 subsequent violation.
27 Sec. 3. If a person issued a civil penalty under section 2 of this
28 chapter for a violation does not remedy the violation in the time
29 prescribed by the department, the department may issue a
30 cessation order requiring the cessation of operations to the extent
31 necessary to remedy the violation. A person that has been issued a
32 cessation order under this section must pay a civil penalty of seven
33 hundred fifty dollars ($750) per day for each day the violation
34 remains unremedied, but not to exceed a total civil penalty of
35 twenty-two thousand five hundred dollars ($22,500) under this
36 section.
37 Sec. 4. If a person does not obtain from the department a
38 required certificate or permit under this article:
39 (1) the person shall pay to the department a civil penalty of
40 ten thousand dollars ($10,000); and
41 (2) the department shall issue to the person a cessation order
42 under section 3 of this chapter.
HB 1579—LS 7427/DI 101 21
1 Sec. 5. A civil penalty or cessation order assessed or issued
2 under this chapter is subject to appeal under IC 4-21.5.
3 Sec. 6. The department shall deposit civil penalties collected
4 under this chapter in the carbon dioxide storage facility fund
5 established by IC 14-39-2-10.
HB 1579—LS 7427/DI 101 22
COMMITTEE REPORT
Mr. Speaker: Your Committee on Utilities, Energy and
Telecommunications, to which was referred House Bill 1579, has had
the same under consideration and begs leave to report the same back
to the House with the recommendation that said bill do pass.
(Reference is to HB 1579 as introduced.)
SOLIDAY
Committee Vote: Yeas 11, Nays 2
_____
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1579, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 2, line 16, after "applicant" insert "or the contractor or
subcontractor of the applicant".
and when so amended that said bill do pass.
(Reference is to HB 1579 as printed January 29, 2025.)
THOMPSON
Committee Vote: yeas 15, nays 8.
HB 1579—LS 7427/DI 101