Indiana 2025 Regular Session

Indiana House Bill HB1579 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	HB1579.2
2		-	~~February 6~~, 2025
	1	+	HB1579.1
	2	+	January 29, 2025
3	3		HOUSE BILL No. 1579
4	4		_____
5		-	DIGEST OF HB 1579 (Updated ~~February 5~~, 2025 4:53 pm - DI ~~134~~)
	5	+	DIGEST OF HB 1579 (Updated January 28, 2025 3:23 pm - DI 140)
6	6		Citations Affected: IC 14-39.
7	7		Synopsis: Carbon sequestration. Amends the Indiana Code chapter
8	8		governing eminent domain for the pipeline transportation or
9	9		underground storage of carbon dioxide as follows: (1) Defines a
10	10		"carbon dioxide transmission pipeline company" (company) for
11	11		purposes of the chapter. (2) Specifies that a company that seeks to
12	12		construct, operate, and maintain a carbon dioxide transmission pipeline
13	13		in Indiana must apply to the department of natural resources
14	14		(department) for a carbon dioxide transmission pipeline certificate of
15	15		authority (certificate). (3) Provides an exemption from the requirement
16	16		to obtain a certificate under certain circumstances based on the route
17	17		of the pipeline and the location of the surface property. (4) Requires the
18	18		department to deposit filing fees for certificate applications in the
19	19		carbon sequestration project program administrative fund (instead of
20	20		in the oil and gas environmental fund, under current law) established
21	21		by the bill's provisions. Amends the Indiana Code chapter governing
22	22		the underground storage of carbon dioxide as follows: (1) Amends the
23	23		definition of "UIC Class VI permit" to specify that the term means a
24	24		permit that allows specified entities to construct or operate (instead of
25	25		operate, under current law) a carbon dioxide injection well. (2)
26	26		Provides that the department may issue an involuntary order requiring
	27	+	two or more pore space owners to integrate their interests to develop an
	28	+	underground carbon dioxide storage facility if the department finds that
	29	+	a storage operator has filed a complete application for a UIC Class VI
27	30		(Continued next page)
28	31		Effective: July 1, 2025.
29	32		Soliday
30	33		January 21, 2025, read first time and referred to Committee on Utilities, Energy and
31	34		Telecommunications.
32	35		January 29, 2025, reported — Do Pass. Referred to Committee on Ways and Means
33	36		pursuant to Rule 126.3.
34		-	February 6, 2025, amended, reported — Do Pass.
35	37		HB 1579—LS 7427/DI 101 Digest Continued
36		-	two or more pore space owners to integrate their interests to develop an
37		-	underground carbon dioxide storage facility if the department finds that
38		-	a storage operator has filed a complete application for a UIC Class VI
39	38		permit with the United States Environmental Protection Agency.
40	39		(Current law requires the department to find that a storage operator has
41	40		been issued a UIC Class VI permit.) (3) Provides that the filing fee for
42	41		an application for a permit for a carbon sequestration project (project)
43	42		is to be: (A) determined based on the metric tons of carbon dioxide
44	43		proposed to be injected into the storage facility during the first 10 years
45	44		of the project's operation; and (B) deposited in the carbon sequestration
46	45		project program administrative fund (administrative fund) established
47	46		by the bill's provisions. (Current law provides for a flat $1,000 filing
48	47		fee.) (4) Makes technical changes to provisions governing: (A) the
49	48		department's review of submitted applications for projects; and (B) the
50	49		designation of information as confidential. (5) Requires a storage
51	50		operator to pay two fees, not later than March 1 of each year, to the
52	51		department for the amount of carbon dioxide injected for storage
53	52		during the immediately preceding calendar year. (Current law requires
54	53		a storage operator to pay one annual fee for the amount of carbon
55	54		dioxide injected, based on a prior estimate of the amount to be injected
56	55		that is made at the time of application for a permit.) (6) Redesignates
57	56		the "carbon dioxide storage facility trust fund" as the "carbon dioxide
58	57		storage facility fund", removes the requirement that the fund must be
59	58		maintained as a special fund, and provides that annual appropriations
60	59		from the fund to the department are subject to review by the budget
61	60		committee. (7) Establishes the administrative fund for the purpose of
62	61		defraying the department's administrative costs in managing and
63	62		operating the carbon sequestration project program (program) and
64	63		annually appropriates to the department from the fund an amount
65	64		sufficient to defray costs, subject to review by the budget committee.
66	65		(8) Prohibits a person from: (A) drilling or operating a nonproduction
67	66		well to investigate the suitability of underground formations for carbon
68	67		sequestration; or (B) converting a well for oil and gas purposes (as
69	68		defined in the Indiana Code) for use in carbon dioxide investigations;
70	69		without a permit and establishes procedures by which a person may
71	70		apply for and the department may issue a permit. (9) Provides that once
72	71		the department has issued a certificate of completion for a project, the
73	72		department may, with advance notice to the surface property owner,
74	73		enter property on which an injection well or monitoring well for the
75	74		storage facility is located to inspect or maintain the well or storage
76	75		facility. (10) Provides that the state may assume ownership and accept
77	76		transfer of a storage facility for which an interest in or rights to
78	77		property are conveyed by a lease only if the lessor and lessee agree in
79	78		the lease agreement to transfer the storage facility to the state. (11)
80	79		Requires the department to report to the budget committee not later
81	80		than: (A) July 1, 2030; and (B) July 1, 2035; the amounts collected and
82	81		the costs incurred by the department in administering the program. (12)
83	82		Provides that a person that violates the statutes governing the pipeline
84	83		transportation or underground storage of carbon dioxide is subject to
85	84		specified civil penalties and cessation orders issued by the department.
86		-	HB 1579—LS 7427/DI 101HB 1579—LS 7427/DI 101 ~~February 6~~, 2025
	85	+	HB 1579—LS 7427/DI 101HB 1579—LS 7427/DI 101 January 29, 2025
87	86		First Regular Session of the 124th General Assembly (2025)
88	87		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
89	88		Constitution) is being amended, the text of the existing provision will appear in this style type,
90	89		additions will appear in this style type, and deletions will appear in this style type.
91	90		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
92	91		provision adopted), the text of the new provision will appear in this style type. Also, the
93	92		word NEW will appear in that style type in the introductory clause of each SECTION that adds
94	93		a new provision to the Indiana Code or the Indiana Constitution.
95	94		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
96	95		between statutes enacted by the 2024 Regular Session of the General Assembly.
97	96		HOUSE BILL No. 1579
98	97		A BILL FOR AN ACT to amend the Indiana Code concerning
99	98		natural and cultural resources and to make an appropriation.
100	99		Be it enacted by the General Assembly of the State of Indiana:
101	100		1 SECTION 1. IC 14-39-1-2.1 IS ADDED TO THE INDIANA CODE
102	101		2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
103	102		3 1, 2025]: Sec. 2.1. As used in this chapter, "carbon dioxide
104	103		4 transmission pipeline company" means a person (as defined in
105	104		5 IC 14-8-2-202 and section 2.6 of this chapter) that is:
106	105		6 (1) issued a carbon dioxide transmission certificate of
107	106		7 authority by the department under this chapter; or
108	107		8 (2) exempt under section 4.5 of this chapter from the
109	108		9 requirement to obtain a carbon dioxide transmission
110	109		10 certificate of authority from the department under this
111	110		11 chapter.
112	111		12 SECTION 2. IC 14-39-1-4, AS AMENDED BY P.L.163-2022,
113	112		13 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
114	113		14 JULY 1, 2025]: Sec. 4. (a) A carbon dioxide transmission pipeline
115	114		15 company may that seeks to construct, operate, and maintain a
116	115		HB 1579—LS 7427/DI 101 2
117	116		1 carbon dioxide transmission pipeline in Indiana must apply to the
118	117		2 department for issuance of a carbon dioxide transmission pipeline
119	118		3 certificate of authority. The department shall prescribe the form of the
120	119		4 application, which must:
121	120		5 (1) include a filing fee of one thousand dollars ($1,000);
122	121		6 (2) be signed by a responsible officer of the company;
123	122		7 (3) include a statement verifying that the information submitted
124	123		8 is true, accurate, and complete to the best of that responsible
125	124		9 officer's knowledge and belief; and
126	125		10 (4) include all information necessary for the department to find
127	126		11 the following:
128	127		12 (A) That the applicant or the contractor or subcontractor of the
129	128		13 applicant has the financial, managerial, and technical ability
130	129		14 to construct, operate, and maintain a carbon dioxide
131	130		15 transmission pipeline in Indiana.
132		-	16 (B) That the applicant or the ~~contractor or subcontractor of~~
133		-	17 ~~the applicant has the requisite experience~~ constructing,
134		-	18 ~~operating, and maintaining a transmission~~ pipeline.
	131	+	16 (B) That the applicant has the requisite experience
	132	+	17 constructing, operating, and maintaining a transmission
	133	+	18 pipeline.
135	134		19 (C) That the applicant has entered into a contract to transport
136	135		20 carbon dioxide by pipeline in Indiana with:
137	136		21 (i) at least one (1) producer of carbon dioxide located in
138	137		22 Indiana; and
139	138		23 (ii) unless all of the carbon dioxide to be transported in the
140	139		24 proposed carbon dioxide transmission pipeline is for the
141	140		25 applicant's own use or account, at least one (1) end user or
142	141		26 storer of carbon dioxide.
143	142		27 (D) That the applicant has provided documentation to the
144	143		28 department showing the proposed length, diameter, and
145	144		29 location of the proposed carbon dioxide transmission pipeline
146	145		30 in Indiana.
147	146		31 (E) That the applicant will construct, operate, and maintain the
148	147		32 proposed carbon dioxide transmission pipeline in accordance
149	148		33 with applicable local, state, and federal law, including federal
150	149		34 and state safety regulations and rules governing the
151	150		35 construction, operation, and maintenance of carbon dioxide
152	151		36 transmission pipelines, and related facilities and equipment, to
153	152		37 ensure the safety of pipeline employees and the public.
154	153		38 (F) That the applicant has:
155	154		39 (i) entered into an agreement with the Indiana utility
156	155		40 regulatory commission concerning the mitigation of
157	156		41 agricultural impacts associated with the construction of the
158	157		42 proposed carbon dioxide transmission pipeline; or
159	158		HB 1579—LS 7427/DI 101 3
160	159		1 (ii) signed a statement indicating that the applicant agrees to
161	160		2 use, in connection with the construction of the proposed
162	161		3 carbon dioxide transmission pipeline, the guidelines adopted
163	162		4 under IC 8-1-22.6-8 by the pipeline safety division of the
164	163		5 Indiana utility regulatory commission.
165	164		6 (b) The department shall review an application filed under
166	165		7 subsection (a). Subject to subsection (f), if the department determines
167	166		8 that the application is incomplete or inaccurate, or both, the department
168	167		9 shall return the application to the applicant, informing the applicant in
169	168		10 writing of the applicant's right to file a corrected application with the
170	169		11 department. If the department determines that the application is
171	170		12 complete and accurate, the department shall provide notice to the
172	171		13 applicant of:
173	172		14 (1) that determination; and
174	173		15 (2) the date, time, and location of the public information meeting
175	174		16 to be held under subsection (d).
176	175		17 (c) The applicant shall:
177	176		18 (1) upon receipt of a notice under subsection (b):
178	177		19 (A) place for public inspection a copy of the application in a
179	178		20 public library located in each county in which the carbon
180	179		21 dioxide transmission pipeline is proposed to be located; and
181	180		22 (B) publish notice, in the same manner that would be required
182	181		23 if the applicant were subject to IC 5-3-1, in each county in
183	182		24 which the carbon dioxide transmission pipeline is proposed to
184	183		25 be located, of:
185	184		26 (i) the name and address of each library in which a copy of
186	185		27 the application is placed under clause (A); and
187	186		28 (ii) the date, time, and location of the public information
188	187		29 meeting to be held under subsection (d);
189	188		30 (2) provide to the department proof of publication of notice under
190	189		31 subdivision (1)(B); and
191	190		32 (3) have a representative present at the public information
192	191		33 meeting held under subsection (d).
193	192		34 (d) The department shall:
194	193		35 (1) conduct a public information meeting in the county seat of one
195	194		36 (1) of the counties, as determined by the department, in which the
196	195		37 proposed carbon dioxide transmission pipeline will be located;
197	196		38 and
198	197		39 (2) provide an opportunity at the meeting for members of the
199	198		40 public to be briefed and to ask questions about the proposed
200	199		41 carbon dioxide transmission pipeline.
201	200		42 (e) Not later than ninety (90) days after the public information
202	201		HB 1579—LS 7427/DI 101 4
203	202		1 meeting held under subsection (d), the department shall notify the
204	203		2 applicant in writing that:
205	204		3 (1) the department:
206	205		4 (A) has made the findings described in subsection (a)(4); and
207	206		5 (B) has approved the application; or
208	207		6 (2) the department:
209	208		7 (A) has determined that the department is unable to make the
210	209		8 findings described in subsection (a)(4); and
211	210		9 (B) has disapproved the application.
212	211		10 (f) The department shall process a corrected application that is filed
213	212		11 as permitted under subsection (b) in the same manner the department
214	213		12 processes an initially filed application under subsection (a).
215	214		13 (g) If the department fails to act under subsection (e) not later than
216	215		14 ninety (90) days after the public information meeting held under
217	216		15 subsection (d), the application is considered to be approved by the
218	217		16 department.
219	218		17 (h) If:
220	219		18 (1) the department approves the application under subsection
221	220		19 (e)(1); or
222	221		20 (2) the application is considered to be approved as described in
223	222		21 subsection (g);
224	223		22 the department shall issue to the applicant a carbon dioxide
225	224		23 transmission pipeline certificate of authority.
226	225		24 SECTION 3. IC 14-39-1-4.5 IS ADDED TO THE INDIANA CODE
227	226		25 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
228	227		26 1, 2025]: Sec. 4.5. A carbon dioxide transmission pipeline company
229	228		27 is not required to obtain a carbon dioxide transmission certificate
230	229		28 of authority under section 4 of this chapter if either of the following
231	230		29 applies:
232	231		30 (1) The carbon dioxide transmission pipeline to be constructed
233	232		31 and operated:
234	233		32 (A) begins and ends on the surface property above the
235	234		33 storage facility; and
236	235		34 (B) does not cross:
237	236		35 (i) public property;
238	237		36 (ii) a public right-of-way; or
239	238		37 (iii) a parcel for which there is an existing easement or
240	239		38 for which an easement is required.
241	240		39 (2) The surface property above the storage facility crosses
242	241		40 only one (1) or more of the following:
243	242		41 (A) A parcel that has an existing private easement.
244	243		42 (B) A parcel for which a private easement is required.
245	244		HB 1579—LS 7427/DI 101 5
246	245		1 (C) A private right-of-way.
247	246		2 SECTION 4. IC 14-39-1-12, AS ADDED BY P.L.150-2011,
248	247		3 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
249	248		4 JULY 1, 2025]: Sec. 12. The department shall deposit fee revenue
250	249		5 received under section 4(a)(1) of this chapter in the oil and gas
251	250		6 environmental carbon sequestration project program
252	251		7 administrative fund established by IC 14-37-10-2. IC 14-39-2-10.5.
253	252		8 SECTION 5. IC 14-39-2-2, AS ADDED BY P.L.163-2022,
254	253		9 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
255	254		10 JULY 1, 2025]: Sec. 2. (a) The following definitions apply throughout
256	255		11 this chapter.
257	256		12 (b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
258	257		13 (c) "Carbon dioxide injection well" refers to a well that is used to
259	258		14 inject carbon dioxide into a reservoir for carbon sequestration pursuant
260	259		15 to a UIC Class VI permit.
261	260		16 (d) "Carbon dioxide plume" means the extent of an underground
262	261		17 three-dimensional injected carbon dioxide stream.
263	262		18 (e) "Carbon sequestration" means the underground storage of carbon
264	263		19 dioxide in a reservoir.
265	264		20 (f) "Carbon sequestration project" means any project that involves
266	265		21 the underground storage of carbon dioxide in a reservoir pursuant to at
267	266		22 least one (1) UIC Class VI permit.
268	267		23 (g) "Mineral lessee" means a lessee identified by the records of the
269	268		24 recorder of deeds for each county containing a portion of the proposed
270	269		25 reservoir who holds an interest in minerals on real property that are
271	270		26 located above, below, or within the proposed reservoir that has been
272	271		27 severed from the surface estate by:
273	272		28 (1) grant;
274	273		29 (2) exception;
275	274		30 (3) reservation;
276	275		31 (4) lease; or
277	276		32 (5) any other means.
278	277		33 (h) "Mineral owner" means an owner identified by the records of the
279	278		34 recorder of deeds for each county containing a portion of the proposed
280	279		35 reservoir who holds an interest in minerals on real property that are
281	280		36 located above, below, or within the proposed reservoir that has been
282	281		37 severed from the surface estate by:
283	282		38 (1) grant;
284	283		39 (2) exception;
285	284		40 (3) reservation;
286	285		41 (4) lease; or
287	286		42 (5) any other means.
288	287		HB 1579—LS 7427/DI 101 6
289	288		1 (i) "Pore space" means subsurface cavities or voids that can be used
290	289		2 as a storage space for carbon dioxide.
291	290		3 (j) "Pore space owner" means:
292	291		4 (1) a person;
293	292		5 (2) a trust;
294	293		6 (3) a corporation; or
295	294		7 (4) another entity;
296	295		8 that has title to, a right to, or an interest in pore space.
297	296		9 (k) "Reservoir" means a subsurface:
298	297		10 (1) sedimentary stratum;
299	298		11 (2) formation;
300	299		12 (3) aquifer;
301	300		13 (4) cavity; or
302	301		14 (5) void;
303	302		15 that is naturally or artificially created for the use of, or is capable of
304	303		16 being made suitable for, injecting and storing carbon dioxide.
305	304		17 (l) "Storage facility" means the subsurface area consisting of the
306	305		18 extent of a carbon dioxide plume which is required to be delineated on
307	306		19 an approved UIC Class VI permit or an amendment to a UIC Class VI
308	307		20 permit of a storage operator.
309	308		21 (m) "Storage operator" means:
310	309		22 (1) a person;
311	310		23 (2) a trust;
312	311		24 (3) a corporation; or
313	312		25 (4) another entity;
314	313		26 that operates a carbon sequestration project.
315	314		27 (n) "Surface or subsurface property interest owner" means a
316	315		28 property interest owner identified by the records of the recorder of
317	316		29 deeds for each county containing a portion of the proposed storage
318	317		30 facility who holds a fee simple interest or other freehold interest in the
319	318		31 surface or subsurface of the property, which may include mineral
320	319		32 rights. The term does not include the owner of a right-of-way, an
321	320		33 easement, or a leasehold.
322	321		34 (o) "UIC Class VI permit" means a permit issued under the federal
323	322		35 Safe Drinking Water Act's Underground Injection Control program that
324	323		36 allows:
325	324		37 (1) a person;
326	325		38 (2) a trust;
327	326		39 (3) a corporation; or
328	327		40 (4) another entity;
329	328		41 to construct or operate a carbon dioxide injection well.
330	329		42 (p) "Underground storage of carbon dioxide" means the injection
331	330		HB 1579—LS 7427/DI 101 7
332	331		1 and storage of carbon dioxide into underground strata and formations
333	332		2 pursuant to at least one (1) UIC Class VI permit.
334	333		3 SECTION 6. IC 14-39-2-4, AS ADDED BY P.L.163-2022,
335	334		4 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
336	335		5 JULY 1, 2025]: Sec. 4. (a) If at least two (2) pore space owners own
337	336		6 pore space located within a proposed carbon dioxide storage area of a
338	337		7 storage facility, the owners may agree to integrate their interests to
339	338		8 develop the pore space as a proposed storage facility for the
340	339		9 underground storage of carbon dioxide.
341	340		10 (b) If all of the owners of the pore space under subsection (a) do not
342	341		11 agree to integrate their interests, the department may issue an order
343	342		12 requiring the owners to integrate their interests and to develop the pore
344	343		13 space as a proposed storage facility for the underground storage of
345	344		14 carbon dioxide to serve the public interest, prevent waste, protect
346	345		15 correlative rights, and facilitate the efficient and effective use of
347	346		16 natural resources, subject to the findings under subsection (c).
348	347		17 (c) Before issuing an order under subsection (b), the department
349	348		18 must make the following findings:
350	349		19 (1) That a storage operator has been issued filed a complete
351	350		20 application for:
352	351		21 (A) a UIC Class VI permit; or
353	352		22 (B) an amended UIC Class VI permit;
354	353		23 that the United States Environmental Protection Agency has
355	354		24 determined contains all the information necessary to process
356	355		25 the application.
357	356		26 (2) That the storage operator has made a good faith effort to
358	357		27 obtain the consent of all pore space owners located within the
359	358		28 proposed storage facility.
360	359		29 (3) That the storage operator has obtained the consent of the
361	360		30 owners of the pore space underlying at least seventy percent
362	361		31 (70%) of the surface area above the proposed storage facility or
363	362		32 amended proposed storage facility.
364	363		33 (4) That all pore space owners who do not agree to integrate their
365	364		34 interests to develop the pore space as a proposed storage facility
366	365		35 for the underground storage of carbon dioxide are equitably
367	366		36 compensated.
368	367		37 (d) A right to pore space granted by this section does not confer a
369	368		38 right to enter upon, or otherwise use, the surface of the land which is
370	369		39 integrated under this section unless provided in an order requiring the
371	370		40 owners to integrate their interests and to develop the pore space as a
372	371		41 proposed storage facility for the underground storage of carbon
373	372		42 dioxide.
374	373		HB 1579—LS 7427/DI 101 8
375	374		1 (e) An involuntary integration order issued by the department
376	375		2 under this section takes effect fifteen (15) days after the storage
377	376		3 operator is issued:
378	377		4 (1) a UIC Class VI permit; or
379	378		5 (2) an amended UIC Class VI permit;
380	379		6 as applicable.
381	380		7 SECTION 7. IC 14-39-2-5, AS ADDED BY P.L.163-2022,
382	381		8 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
383	382		9 JULY 1, 2025]: Sec. 5. (a) Carbon sequestration projects are authorized
384	383		10 in Indiana for the purposes of:
385	384		11 (1) injecting carbon dioxide into the pore space of an underground
386	385		12 storage facility through at least one (1) carbon dioxide injection
387	386		13 well pursuant to a UIC Class VI permit; and
388	387		14 (2) employing the underground storage of carbon dioxide.
389	388		15 (b) A storage operator may not operate a carbon sequestration
390	389		16 project in Indiana without:
391	390		17 (1) a UIC Class VI permit; and
392	391		18 (2) a valid permit issued by the department.
393	392		19 (c) If a carbon sequestration project is owned by an entity other than
394	393		20 the storage operator, the storage operator shall be is responsible for
395	394		21 obtaining a permit for a carbon sequestration project under subsection
396	395		22 (b). A permit for a carbon sequestration project may be transferred or
397	396		23 assigned from one (1) storage operator to another storage operator.
398	397		24 (d) An individual may apply to the department for a permit for a
399	398		25 carbon sequestration project in a form and manner prescribed by the
400	399		26 department.
401	400		27 (e) An application under subsection (d) must include the following:
402	401		28 (1) A filing fee of one thousand dollars ($1,000). determined as
403	402		29 follows:
404	403		30 STEP ONE: Determine the amount in metric tons of
405	404		31 carbon dioxide proposed to be injected into the storage
406	405		32 facility during the first ten (10) years of operation of the
407	406		33 carbon sequestration project.
408	407		34 STEP TWO: Multiply the STEP ONE result by one cent
409	408		35 ($0.01).
410	409		36 The filing fee amount determined under STEP TWO shall be
411	410		37 collected by the department and deposited in the carbon
412	411		38 sequestration project program administrative fund
413	412		39 established by section 10.5 of this chapter.
414	413		40 (2) The signature of the applicant.
415	414		41 (3) A statement verifying that the information submitted is true,
416	415		42 accurate, and complete to the best of applicant's knowledge.
417	416		HB 1579—LS 7427/DI 101 9
418	417		1 (4) Information illustrating that the applicant has the financial,
419	418		2 managerial, and technical ability to construct, operate, and
420	419		3 maintain a carbon sequestration project.
421	420		4 (5) Information illustrating that the applicant or the contractors or
422	421		5 subcontractors of the applicant have the requisite expertise in
423	422		6 constructing, operating, and maintaining a carbon sequestration
424	423		7 project.
425	424		8 (6) Documentation to the department describing the scope of the
426	425		9 proposed carbon sequestration project.
427	426		10 (7) A statement describing how the applicant will construct,
428	427		11 operate, and maintain the proposed carbon sequestration project
429	428		12 in accordance with applicable local, state, and federal law,
430	429		13 including federal and state safety regulations and rules governing
431	430		14 the construction, operation, and maintenance of the carbon
432	431		15 sequestration project, and related facilities and equipment, to
433	432		16 ensure the safety of the carbon sequestration project employees
434	433		17 and the public.
435	434		18 (8) A statement that the interests of a mineral lessee or mineral
436	435		19 owner will not be adversely affected. If a mineral owner or
437	436		20 mineral lessee is adversely affected, the adversely affected
438	437		21 mineral owner or mineral lessee and the applicant may enter into
439	438		22 an agreement under section 4 of this chapter.
440	439		23 (f) If a greater number of metric tons of carbon dioxide are
441	440		24 injected into the storage facility for a carbon sequestration project
442	441		25 during the first ten (10) years of operation of the project than the
443	442		26 number of metric tons proposed in the application for the project
444	443		27 under subsection (e)(1), the storage operator shall pay to the
445	444		28 department the difference between:
446	445		29 (1) the amount of the filing fee calculated under subsection
447	446		30 (e)(1) based on the actual metric tons of carbon dioxide
448	447		31 injected into the storage facility during the first ten (10) years
449	448		32 of operation of the carbon sequestration project; minus
450	449		33 (2) the amount of the filing fee submitted to the department
451	450		34 with the application under subsection (e)(1).
452	451		35 (g) A filing fee paid under this section is not refundable by the
453	452		36 department.
454	453		37 SECTION 8. IC 14-39-2-6, AS ADDED BY P.L.163-2022,
455	454		38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
456	455		39 JULY 1, 2025]: Sec. 6. (a) The department shall review an application
457	456		40 submitted under section 5(d) of this chapter. If the department
458	457		41 determines that the application submitted under section 5(d) of this
459	458		42 chapter is complete, the department shall notify the applicant.
460	459		HB 1579—LS 7427/DI 101 10
461	460		1 (b) The department shall return an application to the applicant if the
462	461		2 department determines that the application is incomplete, inaccurate,
463	462		3 or both.
464	463		4 (c) If the department returns an application to an applicant under
465	464		5 subsection (b), the department shall inform the applicant in writing that
466	465		6 the applicant may file a corrected application not more than sixty (60)
467	466		7 days after the receipt of the returned application.
468	467		8 (d) Upon receiving a corrected complete application under this
469	468		9 section, the department shall review the application.
470	469		10 (e) Upon receiving notification that the corrected an application is
471	470		11 complete, the applicant shall:
472	471		12 (1) not more than sixty (60) days after receiving the notice under
473	472		13 this subsection:
474	473		14 (A) place for public inspection a copy of the corrected
475	474		15 application in a public library located in each county in which
476	475		16 the carbon sequestration project is proposed to be located; for
477	476		17 public inspection;
478	477		18 (B) publish notice under IC 5-3-1 in each county in which the
479	478		19 carbon sequestration project is proposed to be located a notice
480	479		20 of the name and address of each library in which a copy of the
481	480		21 corrected application is placed as required by clause (A); and
482	481		22 (C) provide notice to potentially affected parties pursuant to
483	482		23 312 IAC 29-5-2; under rules adopted by the commission for
484	483		24 carbon sequestration projects; and
485	484		25 (2) provide to the department proof of publication of notice under
486	485		26 this subsection not more than thirty (30) days after the publication
487	486		27 or delivery of the notice.
488	487		28 (f) Not later than ninety (90) days after receiving the proof of
489	488		29 publication of notice under subsection (e), the department shall notify
490	489		30 the applicant in writing that:
491	490		31 (1) the department has approved the application; or
492	491		32 (2) the department has denied the application.
493	492		33 SECTION 9. IC 14-39-2-7, AS ADDED BY P.L.163-2022,
494	493		34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
495	494		35 JULY 1, 2025]: Sec. 7. If the department approves an application under
496	495		36 section 5 of this chapter or a corrected application under section 6(c)
497	496		37 6 of this chapter, the department shall issue to the applicant a carbon
498	497		38 sequestration project permit.
499	498		39 SECTION 10. IC 14-39-2-8, AS ADDED BY P.L.163-2022,
500	499		40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
501	500		41 JULY 1, 2025]: Sec. 8. (a) Except as provided in subsection (b), If a
502	501		42 storage operator or an applicant files with the department a verified
503	502		HB 1579—LS 7427/DI 101 11
504	503		1 statement to the department stating the reasons that the designation of
505	504		2 information as confidential is necessary, the storage operator or
506	505		3 applicant may designate information that it submits in an
507	506		4 application or in subsequent reports as a trade secret or confidential
508	507		5 and proprietary information. should be disclosed, the storage operator
509	508		6 or applicant may disclose the trade secret or confidential and
510	509		7 proprietary information to the department, or in subsequent reports.
511	510		8 (b) The department shall take all necessary precautions to avoid
512	511		9 public disclosure of confidential information under subsection (a).
513	512		10 SECTION 11. IC 14-39-2-9, AS ADDED BY P.L.163-2022,
514	513		11 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
515	514		12 JULY 1, 2025]: Sec. 9. (a) A storage operator shall pay the department
516	515		13 a fee the fees described in subsections (b) and (c) for every metric
517	516		14 ton of carbon dioxide injected for storage.
518	517		15 (b) The storage operator shall provide the department with an
519	518		16 estimate of the amount of carbon dioxide to be injected into a storage
520	519		17 facility for the period of the permit at the time of application for a
521	520		18 carbon sequestration project permit.
522	521		19 (c) (b) Not later than March 1 of each year, a storage operator
523	522		20 shall pay annually to the department a fee of eight cents ($0.08) per
524	523		21 metric ton of carbon dioxide estimated to be injected into a the storage
525	524		22 facility during the immediately preceding calendar year. The
526	525		23 department shall deposit the fee in the carbon dioxide storage
527	526		24 facility fund established by section 10 of this chapter.
528	527		25 (d) A storage operator shall reconcile the previous calendar year's
529	528		26 payment with the volume of carbon dioxide actually injected into the
530	529		27 storage facility the previous calendar year. The storage operator shall
531	530		28 submit payment for the amount of carbon dioxide injected into a
532	531		29 storage facility less the amount paid the previous calendar year.
533	532		30 (e) The department shall refund a storage operator any overpayment
534	533		31 in the current year from the previous calendar year.
535	534		32 (c) Not later than March 1 of each year, a storage operator shall
536	535		33 pay to the department a fee that is based on the amount of carbon
537	536		34 dioxide injected into the storage facility during the immediately
538	537		35 preceding calendar year and that is determined as follows:
539	538		36 STEP ONE: Determine the number of metric tons of carbon
540	539		37 dioxide that were injected into the storage facility during the
541	540		38 just ended calendar year.
542	541		39 STEP TWO: Multiply the number determined in STEP ONE
543	542		40 by five cents ($0.05).
544	543		41 The department shall deposit the fee in the carbon sequestration
545	544		42 project program administrative fund established by section 10.5 of
546	545		HB 1579—LS 7427/DI 101 12
547	546		1 this chapter.
548	547		2 SECTION 12. IC 14-39-2-10, AS ADDED BY P.L.163-2022,
549	548		3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
550	549		4 JULY 1, 2025]: Sec. 10. (a) The carbon dioxide storage facility trust
551	550		5 fund is established for the purpose of defraying the costs incurred
552	551		6 by the department for the long term monitoring and management
553	552		7 of, including the monitoring and management of the safety of, a
554	553		8 carbon sequestration project. The fund shall be administered by
555	554		9 the department.
556	555		10 (b) The fee collected fund consists of the following:
557	556		11 (1) Fees deposited in the fund by the department under section
558	557		12 9 9(b) of this chapter. must be deposited in the carbon dioxide
559	558		13 storage facility trust fund established by subsection (a).
560	559		14 (2) Civil penalties deposited in the fund by the department
561	560		15 under IC 14-39-3-6.
562	561		16 (3) Money deposited in or distributed to the fund under this
563	562		17 chapter.
564	563		18 (4) Money received from any other source, including
565	564		19 appropriations.
566	565		20 (c) The carbon dioxide storage facility trust fund must be
567	566		21 maintained as a special fund and all money in the fund is appropriated
568	567		22 and may be used only to defray the costs incurred by the department for
569	568		23 the long term monitoring and management of a carbon sequestration
570	569		24 project.
571	570		25 (c) The expenses of administering the fund shall be paid from
572	571		26 money in the fund.
573	572		27 (d) The treasurer of state shall invest the money in the fund not
574	573		28 currently needed to meet the obligations of the fund in the same
575	574		29 manner as other public money may be invested. Interest that
576	575		30 accrues from these investments shall be deposited in the fund.
577	576		31 (e) Money in the fund at the end of a state fiscal year does not
578	577		32 revert to the state general fund.
579	578		33 (f) There is annually appropriated to the department from the
580	579		34 fund an amount sufficient for the department to carry out the
581	580		35 purposes of this article, subject to review by the budget committee.
582	581		36 SECTION 13. IC 14-39-2-10.5 IS ADDED TO THE INDIANA
583	582		37 CODE AS A NEW SECTION TO READ AS FOLLOWS
584	583		38 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. (a) The carbon
585	584		39 sequestration project program administrative fund is established
586	585		40 for the purpose of defraying the cost of administrative expenses
587	586		41 incurred by the department to manage and operate the carbon
588	587		42 sequestration project program. The fund shall be administered by
589	588		HB 1579—LS 7427/DI 101 13
590	589		1 the department.
591	590		2 (b) The fund consists of the following:
592	591		3 (1) Fees deposited in the fund by the department under
593	592		4 IC 14-39-1-4(a)(1) and section 9(c) of this chapter.
594	593		5 (2) Money deposited in or distributed to the fund under this
595	594		6 chapter.
596	595		7 (3) Money received from any other source, including
597	596		8 appropriations.
598	597		9 (c) The expenses of administering the fund shall be paid from
599	598		10 money in the fund.
600	599		11 (d) The treasurer of state shall invest the money in the fund not
601	600		12 currently needed to meet the obligations of the fund in the same
602	601		13 manner as other public money may be invested. Interest that
603	602		14 accrues from these investments shall be deposited in the fund.
604	603		15 (e) Money in the fund at the end of a state fiscal year does not
605	604		16 revert to the state general fund.
606	605		17 (f) There is annually appropriated to the department from the
607	606		18 fund an amount sufficient to defray the cost of administrative
608	607		19 expenses incurred by the department to manage and operate the
609	608		20 carbon sequestration project program, subject to review by the
610	609		21 budget committee.
611	610		22 SECTION 14. IC 14-39-2-11, AS ADDED BY P.L.163-2022,
612	611		23 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
613	612		24 JULY 1, 2025]: Sec. 11. (a) A mineral owner or mineral lessee shall
614	613		25 provide written notice to a storage operator at least thirty-one (31) days
615	614		26 prior to drilling a well if the mineral owner or mineral lessee wishes to
616	615		27 drill a well not more than:
617	616		28 (1) three hundred thirty (330) feet from the surface location of a
618	617		29 well pursuant to a UIC Class VI permit; or
619	618		30 (2) five hundred (500) feet from the uppermost confining zone of
620	619		31 a carbon sequestration facility within the boundary of the
621	620		32 storage facility pursuant to a UIC Class VI permit.
622	621		33 Drilling permitted by this subsection must be conducted in cooperation
623	622		34 with a storage operator.
624	623		35 (b) A well drilled under subsection (a) must be drilled in
625	624		36 compliance with the requirements of:
626	625		37 (1) the department to preserve the integrity of the storage facility;
627	626		38 (2) a UIC Class VI permit; and
628	627		39 (3) any other applicable regulations.
629	628		40 SECTION 15. IC 14-39-2-11.5 IS ADDED TO THE INDIANA
630	629		41 CODE AS A NEW SECTION TO READ AS FOLLOWS
631	630		42 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) A person may not:
632	631		HB 1579—LS 7427/DI 101 14
633	632		1 (1) drill, deepen, or operate a nonproduction well to
634	633		2 investigate and obtain data on geological, structural, or
635	634		3 hydrogeologic stratigraphic intervals to determine the
636	635		4 suitability of underground formations for carbon
637	636		5 sequestration; or
638	637		6 (2) convert a well for oil and gas purposes (as defined in
639	638		7 IC 14-8-2-317) for carbon dioxide investigations;
640	639		8 without first obtaining a permit issued by the department under
641	640		9 this section.
642	641		10 (b) An application for a permit under this section shall be in the
643	642		11 form and manner prescribed by the department and must include
644	643		12 the following:
645	644		13 (1) The name, address, telephone number, and electronic mail
646	645		14 address of the applicant.
647	646		15 (2) The signature of:
648	647		16 (A) the applicant; or
649	648		17 (B) the operator, as identified in the application.
650	649		18 (3) An identification of the plat of land where, or any lease
651	650		19 under which, the well will be located, along with a description
652	651		20 of the property boundaries, lease lines, and storage area tract
653	652		21 boundaries, including the acreage within the tract, as
654	653		22 applicable.
655	654		23 (4) The location of the proposed well as certified by a
656	655		24 professional surveyor registered under IC 25-21.5.
657	656		25 (5) The surface elevation of the proposed well and the method
658	657		26 used to determine the elevation.
659	658		27 (6) The depth of the proposed well.
660	659		28 (7) Proof of a surface use agreement executed by the applicant
661	660		29 and the surface owner, including a provision specifying that
662	661		30 in acting as authorized under a permit issued by the
663	662		31 department under this section, the operator does not commit
664	663		32 trespass with respect to the subsurface estate in any case in
665	664		33 which the subsurface estate is separate from the surface
666	665		34 estate.
667	666		35 (8) Any other information required by the department as
668	667		36 necessary to administer this section.
669	668		37 (c) An applicant shall submit the following with an application
670	669		38 for a permit under this section:
671	670		39 (1) For each well included in the application, a cash bond of
672	671		40 ten dollars ($10) for each foot of well depth.
673	672		41 (2) A permit fee of two hundred fifty dollars ($250) payable to
674	673		42 the department.
675	674		HB 1579—LS 7427/DI 101 15
676	675		1 The department shall deposit all amounts collected under this
677	676		2 subsection in the carbon sequestration project program
678	677		3 administrative fund established by section 10.5 of this chapter.
679	678		4 (d) Except as provided in subsection (e), the department shall
680	679		5 issue a permit under this section not later than fifteen (15) days
681	680		6 after the applicant:
682	681		7 (1) demonstrates compliance with all relevant:
683	682		8 (A) provisions of this article; and
684	683		9 (B) rules adopted under this article;
685	684		10 as determined by the department and to the extent not
686	685		11 otherwise waived by the department; and
687	686		12 (2) submits a complete permit application under this section
688	687		13 to the department.
689	688		14 A permit issued under this section does not convey to the holder a
690	689		15 property right or an exclusive privilege.
691	690		16 (e) The department may deny a permit under this section if the
692	691		17 applicant, or an officer, partner, or director of the applicant:
693	692		18 (1) either:
694	693		19 (A) is in violation of this article at the time of the
695	694		20 application; or
696	695		21 (B) would be in violation of this article if the permit were
697	696		22 issued; or
698	697		23 (2) has demonstrated in the past a pattern of willful violations
699	698		24 of this article.
700	699		25 (f) The department shall incorporate in a permit issued under
701	700		26 this section those terms, conditions, and covenants that the
702	701		27 department considers necessary to protect the public interest.
703	702		28 (g) A person issued a permit under this section shall do the
704	703		29 following:
705	704		30 (1) Comply with the conditions of the permit to the
706	705		31 satisfaction of the department.
707	706		32 (2) Correct any adverse environmental impact that results
708	707		33 from noncompliance with the permit.
709	708		34 (3) Provide for the proper operation and maintenance of all:
710	709		35 (A) facilities;
711	710		36 (B) treatment systems; and
712	711		37 (C) control and related appurtenances;
713	712		38 that are installed or used by the person to comply with the
714	713		39 permit conditions.
715	714		40 (h) Except as provided in subsection (i), a permit issued under
716	715		41 this section with respect to a particular well remains effective until
717	716		42 any of the following occurs:
718	717		HB 1579—LS 7427/DI 101 16
719	718		1 (1) The well is plugged and abandoned.
720	719		2 (2) The well is converted to another type of well.
721	720		3 (3) The permit is revoked by the department under subsection
722	721		4 (j).
723	722		5 (i) A permit issued by the department under this section expires
724	723		6 one (1) year after the date of issuance if the drilling of a well for
725	724		7 which the permit has been issued has not commenced within that
726	725		8 time.
727	726		9 (j) The department may revoke a permit issued under this
728	727		10 section if the department determines that:
729	728		11 (1) a pattern of violations of the requirements of:
730	729		12 (A) this section;
731	730		13 (B) rules adopted under subsection (o); or
732	731		14 (C) permit conditions;
733	732		15 exists or has existed; and
734	733		16 (2) the violations:
735	734		17 (A) are caused by the permit holder's unwarranted failure
736	735		18 to comply (as defined in IC 14-34-15-7) with:
737	736		19 (i) the requirements of this section;
738	737		20 (ii) rules adopted under subsection (o); or
739	738		21 (iii) permit conditions; or
740	739		22 (B) are willfully caused by the permit holder.
741	740		23 (k) Subject to subsection (l), a person holding a permit under
742	741		24 this section shall plug and abandon a well that is no longer
743	742		25 operating under the permit unless the well is converted to a carbon
744	743		26 dioxide injection or monitoring well under a UIC Class VI permit.
745	744		27 (l) A person holding a permit under this section may defer
746	745		28 plugging and abandoning the well while an application is pending
747	746		29 to convert the well to a UIC Class VI carbon dioxide injection or
748	747		30 monitoring well, as long as the well is temporarily capped and
749	748		31 maintained in the manner prescribed by the department in the
750	749		32 permit.
751	750		33 (m) After a well is plugged and either abandoned or transferred,
752	751		34 the applicant that paid the bond under subsection (c)(1) may
753	752		35 request a total or partial bond release from the department. The
754	753		36 director of the division of reclamation shall either:
755	754		37 (1) release the bond as requested; or
756	755		38 (2) deny the bond release.
757	756		39 (n) A determination by the department, including a
758	757		40 determination to revoke a permit under subsection (j), is subject to
759	758		41 review and appeal under IC 4-21.5.
760	759		42 (o) The commission may adopt rules under IC 4-22-2 to
761	760		HB 1579—LS 7427/DI 101 17
762	761		1 implement this section.
763	762		2 SECTION 16. IC 14-39-2-13, AS ADDED BY P.L.163-2022,
764	763		3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
765	764		4 JULY 1, 2025]: Sec. 13. (a) A certificate of project completion shall be
766	765		5 issued upon the application from by the storage operator if the
767	766		6 department finds that the storage operator does the following:
768	767		7 (1) The storage operator is in compliance with all applicable laws
769	768		8 governing the storage facility.
770	769		9 (2) The storage operator shows that the storage facility is
771	770		10 reasonably expected to retain the carbon dioxide stored therein.
772	771		11 in the storage facility.
773	772		12 (3) The storage operator shows that the carbon dioxide in the
774	773		13 storage facility is stable by showing that either:
775	774		14 (A) the stored carbon dioxide is essentially stationary; or
776	775		15 (B) if the stored carbon migrates, the migration will be is
777	776		16 unlikely to cross the boundaries of the storage facility.
778	777		17 (4) The storage operator shows that all wells, equipment, and
779	778		18 facilities used after the closure period are in good condition and
780	779		19 retain mechanical integrity.
781	780		20 (5) The storage operator shows that injection wells have been
782	781		21 plugged.
783	782		22 (6) The storage operator shows that equipment and facilities, not
784	783		23 including fixed structures and long term monitoring equipment
785	784		24 and wells, have been removed.
786	785		25 (7) The storage operator proves that the reclamation work
787	786		26 required by the department where the project ceases to inject
788	787		27 carbon dioxide is completed.
789	788		28 (8) The following with respect to site closure:
790	789		29 (A) The storage operator has provided a notice of intent for
791	790		30 site closure to the United States Environmental Protection
792	791		31 Agency.
793	792		32 (B) The United States Environmental Protection Agency has
794	793		33 authorized site closure.
795	794		34 (C) The storage operator has provided: to the United States
796	795		35 Environmental Protection Agency:
797	796		36 (i) the site closure report required under 40 CFR 146.93(f)
798	797		37 (as in effect January 1, 2022) to the United States
799	798		38 Environmental Protection Agency; or
800	799		39 (ii) a comparable report to the state regulatory body if the
801	800		40 state assumes primacy for UIC Class VI permitting.
802	801		41 (b) The department shall issue a certificate of project completion not
803	802		42 later than one hundred eighty (180) days after receiving an application
804	803		HB 1579—LS 7427/DI 101 18
805	804		1 from the storage operator. If the department determines that the
806	805		2 application for a certificate of project completion is incomplete,
807	806		3 inaccurate, or both, the department shall return the application to the
808	807		4 storage operator.
809	808		5 (c) If the department returns the application to the storage operator
810	809		6 under subsection (b), the department shall inform the storage operator,
811	810		7 in writing, of the deficiencies of the submitted application and inform
812	811		8 the storage operator of the right to file a corrected application with the
813	812		9 department.
814	813		10 (d) Once a certificate of completion is issued, the following occurs:
815	814		11 apply:
816	815		12 (1) Except as provided in subsection (e), the state will assume
817	816		13 ownership of and responsibility for the storage facility.
818	817		14 (2) The state will assume responsibility for all regulatory
819	818		15 requirements associated with the storage facility, and the storage
820	819		16 operator and the owner of the storage facility are released from
821	820		17 responsibility for all regulatory requirements associated with the
822	821		18 storage facility.
823	822		19 (3) The state will assume any potential liability associated with
824	823		20 the storage facility.
825	824		21 (4) The department may, at a reasonable time, enter property
826	825		22 on which a carbon dioxide injection well or monitoring well
827	826		23 for the storage facility is located to inspect or maintain the
828	827		24 well or storage facility. Except in the case of an emergency,
829	828		25 the department shall provide advance notice to the owner of
830	829		26 the surface property of the date the department intends to
831	830		27 enter the property. The notice required by this subdivision
832	831		28 must be provided at least five (5) business days before the date
833	832		29 of the planned entry and must be delivered by:
834	833		30 (A) United States mail;
835	834		31 (B) private courier;
836	835		32 (C) personal delivery; or
837	836		33 (D) any other manner agreed to in writing by the
838	837		34 department and the owner of the surface property.
839	838		35 (e) The state may:
840	839		36 (1) assume ownership of and responsibility for; or
841	840		37 (2) accept transfer of;
842	841		38 a storage facility with respect to which an interest in or rights to
843	842		39 property are conveyed by a lease agreement only if the lessor and
844	843		40 lessee agree in the lease agreement to transfer the storage facility
845	844		41 to the state. In a transfer described in this subsection, the state
846	845		42 assumes ownership of and responsibility for the storage facility
847	846		HB 1579—LS 7427/DI 101 19
848	847		1 only and does not assume any other ownership interest,
849	848		2 responsibility, or liability under any other provisions of the lease
850	849		3 agreement.
851	850		4 (e) (f) Unless there is documentation to the contrary, the storage
852	851		5 operator has title to the carbon dioxide injected into and stored in a
853	852		6 storage facility, and the storage operator holds title until the department
854	853		7 issues a certificate of completion.
855	854		8 SECTION 17. IC 14-39-2-15 IS ADDED TO THE INDIANA
856	855		9 CODE AS A NEW SECTION TO READ AS FOLLOWS
857	856		10 [EFFECTIVE JULY 1, 2025]: Sec. 15. (a) Not later than July 1,
858	857		11 2030, the department shall submit to the budget committee a
859	858		12 report that sets forth the following information:
860	859		13 (1) Amounts collected by the department under this chapter
861	860		14 during the period:
862	861		15 (A) beginning January 1, 2025; and
863	862		16 (B) ending December 31, 2029.
864	863		17 (2) Costs incurred by the department to administer the
865	864		18 carbon sequestration project program under this chapter
866	865		19 during the period:
867	866		20 (A) beginning January 1, 2023; and
868	867		21 (B) ending December 31, 2029.
869	868		22 (3) Projections as to:
870	869		23 (A) amounts the department anticipates collecting under
871	870		24 this chapter; and
872	871		25 (B) costs to the department to administer the carbon
873	872		26 sequestration project program under this chapter;
874	873		27 during the period beginning January 1, 2030, and ending
875	874		28 December 31, 2034.
876	875		29 (b) Not later than July 1, 2035, the department shall submit to
877	876		30 the budget committee a report that sets forth the following
878	877		31 information:
879	878		32 (1) Amounts collected by the department under this chapter
880	879		33 during the period:
881	880		34 (A) beginning January 1, 2030; and
882	881		35 (B) ending December 31, 2034.
883	882		36 (2) Costs incurred by the department to administer the
884	883		37 carbon sequestration project program under this chapter
885	884		38 during the period:
886	885		39 (A) beginning January 1, 2030; and
887	886		40 (B) ending December 31, 2034.
888	887		41 (3) Projections as to:
889	888		42 (A) amounts the department anticipates collecting under
890	889		HB 1579—LS 7427/DI 101 20
891	890		1 this chapter; and
892	891		2 (B) costs to the department to administer the carbon
893	892		3 sequestration project program under this chapter;
894	893		4 during the period beginning January 1, 2035, and ending
895	894		5 December 31, 2039.
896	895		6 (4) A recommendation, based on the information provided
897	896		7 under subsection (a) and this subsection, as to the amount of
898	897		8 any adjustment to fees under this chapter necessary to ensure
899	898		9 the financial viability of the carbon sequestration project
900	899		10 program.
901	900		11 (c) This section expires January 1, 2040.
902	901		12 SECTION 18. IC 14-39-3 IS ADDED TO THE INDIANA CODE
903	902		13 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
904	903		14 JULY 1, 2025]:
905	904		15 Chapter 3. Violations and Penalties
906	905		16 Sec. 1. A person that violates a permit or other requirement
907	906		17 under this article, including rules adopted under this article, is
908	907		18 subject to a civil penalty under this chapter.
909	908		19 Sec. 2. Except as provided in section 4 of this chapter, a person
910	909		20 that violates a permit or other requirement under this article,
911	910		21 including rules adopted under this article, shall pay to the
912	911		22 department a civil penalty as follows:
913	912		23 (1) One thousand dollars ($1,000) for a first violation.
914	913		24 (2) Five thousand dollars ($5,000) for a second violation.
915	914		25 (3) Ten thousand dollars ($10,000) for a third and each
916	915		26 subsequent violation.
917	916		27 Sec. 3. If a person issued a civil penalty under section 2 of this
918	917		28 chapter for a violation does not remedy the violation in the time
919	918		29 prescribed by the department, the department may issue a
920	919		30 cessation order requiring the cessation of operations to the extent
921	920		31 necessary to remedy the violation. A person that has been issued a
922	921		32 cessation order under this section must pay a civil penalty of seven
923	922		33 hundred fifty dollars ($750) per day for each day the violation
924	923		34 remains unremedied, but not to exceed a total civil penalty of
925	924		35 twenty-two thousand five hundred dollars ($22,500) under this
926	925		36 section.
927	926		37 Sec. 4. If a person does not obtain from the department a
928	927		38 required certificate or permit under this article:
929	928		39 (1) the person shall pay to the department a civil penalty of
930	929		40 ten thousand dollars ($10,000); and
931	930		41 (2) the department shall issue to the person a cessation order
932	931		42 under section 3 of this chapter.
933	932		HB 1579—LS 7427/DI 101 21
934	933		1 Sec. 5. A civil penalty or cessation order assessed or issued
935	934		2 under this chapter is subject to appeal under IC 4-21.5.
936	935		3 Sec. 6. The department shall deposit civil penalties collected
937	936		4 under this chapter in the carbon dioxide storage facility fund
938	937		5 established by IC 14-39-2-10.
939	938		HB 1579—LS 7427/DI 101 22
940	939		COMMITTEE REPORT
941	940		Mr. Speaker: Your Committee on Utilities, Energy and
942	941		Telecommunications, to which was referred House Bill 1579, has had
943	942		the same under consideration and begs leave to report the same back
944	943		to the House with the recommendation that said bill do pass.
945	944		(Reference is to HB 1579 as introduced.)
946	945		SOLIDAY
947	946		Committee Vote: Yeas 11, Nays 2
948		-	_____
949		-	COMMITTEE REPORT
950		-	Mr. Speaker: Your Committee on Ways and Means, to which was
951		-	referred House Bill 1579, has had the same under consideration and
952		-	begs leave to report the same back to the House with the
953		-	recommendation that said bill be amended as follows:
954		-	Page 2, line 16, after "applicant" insert "or the contractor or
955		-	subcontractor of the applicant".
956		-	and when so amended that said bill do pass.
957		-	(Reference is to HB 1579 as printed January 29, 2025.)
958		-	THOMPSON
959		-	Committee Vote: yeas 15, nays 8.
960	947		HB 1579—LS 7427/DI 101