Indiana 2025 Regular Session

Indiana Senate Bill SB0457 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	ES0457.1
	2	+	March 13, 2025
	3	+	ENGROSSED
	4	+	SENATE BILL No. 457
	5	+	_____
	6	+	DIGEST OF SB 457 (Updated March 11, 2025 11:05 am - DI 140)
	7	+	Citations Affected: IC 14-39.
	8	+	Synopsis: Carbon dioxide sequestration. Requires an applicant for a
	9	+	carbon dioxide transmission pipeline certificate to comply with certain
	10	+	guidelines adopted by the Indiana utility regulatory commission.
	11	+	Exempts a carbon dioxide transmission pipeline company (company)
	12	+	from obtaining a certificate of authority if the company's carbon
	13	+	dioxide transmission pipeline project meets certain criteria. Requires
	14	+	an applicant or the contractor or subcontractor of the applicant to
	15	+	submit evidence that the contractor or subcontractor of the applicant
	16	+	have the requisite experience constructing, operating, and maintaining
	17	+	a transmission pipeline for the department to grant the applicant a
	18	+	carbon dioxide transmission pipeline certificate of authority. Moves fee
	19	+	revenue collected for a carbon dioxide transmission pipeline certificate
	20	+	of authority from the oil and gas environmental fund to the state
	21	+	(Continued next page)
	22	+	Effective: June 29, 2025; July 1, 2025.
	23	+	Glick, Koch
	24	+	(HOUSE SPONSOR — SOLIDAY)
	25	+	January 13, 2025, read first time and referred to Committee on Natural Resources.
	26	+	January 28, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
	27	+	Appropriations.
	28	+	February 6, 2025, amended, reported favorably — Do Pass.
	29	+	February 10, 2025, read second time, amended, ordered engrossed.
	30	+	February 11, 2025, engrossed. Read third time, passed. Yeas 27, nays 21.
	31	+	HOUSE ACTION
	32	+	March 3, 2025, read first time and referred to Committee on Utilities, Energy and
	33	+	Telecommunications.
	34	+	March 13, 2025, reported — Do Pass.
	35	+	ES 457—LS 7454/DI 150 Digest Continued
	36	+	general fund. Provides that the filing fee for a permit for a carbon
	37	+	sequestration project is deposited in the state general fund. Provides
	38	+	that an involuntary integration order issued by the department of
	39	+	natural resources (department) is effective 15 days after the petitioner
	40	+	is issued a UIC Class VI permit. Amends the definition of "UIC Class
	41	+	VI permit". Adjusts the filing fee for a carbon sequestration project
	42	+	permit. Requires a storage operator to pay the department a fee of
	43	+	$0.08 per metric ton of carbon dioxide injected into a storage facility
	44	+	for the previous calendar year. Provides that a storage operator shall
	45	+	pay to the department a fee for the carbon dioxide injected into the
	46	+	storage facility. Expires the carbon dioxide storage facility trust fund
	47	+	and provides for the transfer of money in that fund to the state general
	48	+	fund. Directs the department to establish and issue a permit that allows
	49	+	a person to: (1) drill or operate a carbon dioxide investigatory well; or
	50	+	(2) convert an oil and gas well for use in carbon dioxide investigations.
	51	+	Describes circumstances in which the department may enter property
	52	+	to inspect and maintain a well or storage facility. Establishes civil
	53	+	penalties for violations of the statutes regulating carbon sequestration.
	54	+	Provides that civil penalties are deposited in the state general fund.
	55	+	ES 457—LS 7454/DI 150ES 457—LS 7454/DI 150 March 13, 2025
1	56		First Regular Session of the 124th General Assembly (2025)
2	57		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	58		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	59		additions will appear in this style type, and deletions will appear in this style type.
5	60		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	61		provision adopted), the text of the new provision will appear in this style type. Also, the
7	62		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	63		a new provision to the Indiana Code or the Indiana Constitution.
9	64		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	65		between statutes enacted by the 2024 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 457
12		-	AN ACT to amend the Indiana Code concerning natural and cultural
13		-	resources.
	66	+	ENGROSSED
	67	+	SENATE BILL No. 457
	68	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	69	+	natural and cultural resources.
14	70		Be it enacted by the General Assembly of the State of Indiana:
15		-	SECTION 1. IC 14-39-1-4, AS AMENDED BY P.L.163-2022,
	71	+	1 SECTION 1. IC 14-39-1-4, AS AMENDED BY P.L.163-2022,
	72	+	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	73	+	3 JULY 1, 2025]: Sec. 4. (a) A carbon dioxide transmission pipeline
	74	+	4 company may apply to the department for issuance of a carbon dioxide
	75	+	5 transmission pipeline certificate of authority. The department shall
	76	+	6 prescribe the form of the application, which must:
	77	+	7 (1) include a filing fee of one thousand dollars ($1,000);
	78	+	8 (2) be signed by a responsible officer of the company;
	79	+	9 (3) include a statement verifying that the information submitted
	80	+	10 is true, accurate, and complete to the best of that responsible
	81	+	11 officer's knowledge and belief; and
	82	+	12 (4) include all information necessary for the department to find
	83	+	13 the following:
	84	+	14 (A) That the applicant or the contractor or subcontractor of the
	85	+	15 applicant has the financial, managerial, and technical ability
	86	+	16 to construct, operate, and maintain a carbon dioxide
	87	+	17 transmission pipeline in Indiana.
	88	+	ES 457—LS 7454/DI 150 2
	89	+	1 (B) That the applicant, or the contractor or subcontractor of
	90	+	2 the applicant, has the requisite experience constructing,
	91	+	3 operating, and maintaining a transmission pipeline.
	92	+	4 (C) That the applicant has entered into a contract to transport
	93	+	5 carbon dioxide by pipeline in Indiana with:
	94	+	6 (i) at least one (1) producer of carbon dioxide located in
	95	+	7 Indiana; and
	96	+	8 (ii) unless all of the carbon dioxide to be transported in the
	97	+	9 proposed carbon dioxide transmission pipeline is for the
	98	+	10 applicant's own use or account, at least one (1) end user or
	99	+	11 storer of carbon dioxide.
	100	+	12 (D) That the applicant has provided documentation to the
	101	+	13 department showing the proposed length, diameter, and
	102	+	14 location of the proposed carbon dioxide transmission pipeline
	103	+	15 in Indiana.
	104	+	16 (E) That the applicant will construct, operate, and maintain the
	105	+	17 proposed carbon dioxide transmission pipeline in accordance
	106	+	18 with applicable local, state, and federal law, including federal
	107	+	19 and state safety regulations and rules governing the
	108	+	20 construction, operation, and maintenance of carbon dioxide
	109	+	21 transmission pipelines, and related facilities and equipment, to
	110	+	22 ensure the safety of pipeline employees and the public.
	111	+	23 (F) That the applicant has signed a statement indicating that
	112	+	24 the applicant agrees to construct a proposed carbon
	113	+	25 dioxide transmission pipeline in a manner compliant with
	114	+	26 the guidelines adopted under IC 8-1-22.6-8 by the pipeline
	115	+	27 safety division of the Indiana utility regulatory
	116	+	28 commission.
	117	+	29 (i) entered into an agreement with the Indiana utility
	118	+	30 regulatory commission concerning the mitigation of
	119	+	31 agricultural impacts associated with the construction of the
	120	+	32 proposed carbon dioxide transmission pipeline; or
	121	+	33 (ii) signed a statement indicating that the applicant agrees to
	122	+	34 use, in connection with the construction of the proposed
	123	+	35 carbon dioxide transmission pipeline, the guidelines adopted
	124	+	36 under IC 8-1-22.6-8 by the pipeline safety division of the
	125	+	37 Indiana utility regulatory commission.
	126	+	38 (b) The department shall review an application filed under
	127	+	39 subsection (a). Subject to subsection (f), if the department determines
	128	+	40 that the application is incomplete or inaccurate, or both, the department
	129	+	41 shall return the application to the applicant, informing the applicant in
	130	+	42 writing of the applicant's right to file a corrected application with the
	131	+	ES 457—LS 7454/DI 150 3
	132	+	1 department. If the department determines that the application is
	133	+	2 complete and accurate, the department shall provide notice to the
	134	+	3 applicant of:
	135	+	4 (1) that determination; and
	136	+	5 (2) the date, time, and location of the public information meeting
	137	+	6 to be held under subsection (d).
	138	+	7 (c) The applicant shall:
	139	+	8 (1) upon receipt of a notice under subsection (b):
	140	+	9 (A) place for public inspection a copy of the application in a
	141	+	10 public library located in each county in which the carbon
	142	+	11 dioxide transmission pipeline is proposed to be located; and
	143	+	12 (B) publish notice, in the same manner that would be required
	144	+	13 if the applicant were subject to IC 5-3-1, in each county in
	145	+	14 which the carbon dioxide transmission pipeline is proposed to
	146	+	15 be located, of:
	147	+	16 (i) the name and address of each library in which a copy of
	148	+	17 the application is placed under clause (A); and
	149	+	18 (ii) the date, time, and location of the public information
	150	+	19 meeting to be held under subsection (d);
	151	+	20 (2) provide to the department proof of publication of notice under
	152	+	21 subdivision (1)(B); and
	153	+	22 (3) have a representative present at the public information
	154	+	23 meeting held under subsection (d).
	155	+	24 (d) The department shall:
	156	+	25 (1) conduct a public information meeting in the county seat of one
	157	+	26 (1) of the counties, as determined by the department, in which the
	158	+	27 proposed carbon dioxide transmission pipeline will be located;
	159	+	28 and
	160	+	29 (2) provide an opportunity at the meeting for members of the
	161	+	30 public to be briefed and to ask questions about the proposed
	162	+	31 carbon dioxide transmission pipeline.
	163	+	32 (e) Not later than ninety (90) days after the public information
	164	+	33 meeting held under subsection (d), the department shall notify the
	165	+	34 applicant in writing that:
	166	+	35 (1) the department:
	167	+	36 (A) has made the findings described in subsection (a)(4); and
	168	+	37 (B) has approved the application; or
	169	+	38 (2) the department:
	170	+	39 (A) has determined that the department is unable to make the
	171	+	40 findings described in subsection (a)(4); and
	172	+	41 (B) has disapproved the application.
	173	+	42 (f) The department shall process a corrected application that is filed
	174	+	ES 457—LS 7454/DI 150 4
	175	+	1 as permitted under subsection (b) in the same manner the department
	176	+	2 processes an initially filed application under subsection (a).
	177	+	3 (g) If the department fails to act under subsection (e) not later than
	178	+	4 ninety (90) days after the public information meeting held under
	179	+	5 subsection (d), the application is considered to be approved by the
	180	+	6 department.
	181	+	7 (h) If:
	182	+	8 (1) the department approves the application under subsection
	183	+	9 (e)(1); or
	184	+	10 (2) the application is considered to be approved as described in
	185	+	11 subsection (g);
	186	+	12 the department shall issue to the applicant a carbon dioxide
	187	+	13 transmission pipeline certificate of authority.
	188	+	14 SECTION 2. IC 14-39-1-4.5 IS ADDED TO THE INDIANA CODE
	189	+	15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	190	+	16 1, 2025]: Sec. 4.5. (a) A carbon dioxide transmission pipeline
	191	+	17 company is not required to obtain a carbon dioxide transmission
	192	+	18 pipeline certificate of authority under section 4 of this chapter if
	193	+	19 the carbon dioxide transmission pipeline:
	194	+	20 (1) begins and ends on the surface property above the storage
	195	+	21 facility; and
	196	+	22 (2) does not cross:
	197	+	23 (A) public property;
	198	+	24 (B) a public right-of-way; or
	199	+	25 (C) a parcel for which there is an existing easement or for
	200	+	26 which an easement is required.
	201	+	27 (b) A carbon dioxide transmission pipeline company is not
	202	+	28 required to obtain a carbon dioxide transmission pipeline
	203	+	29 certificate of authority under section 4 of this chapter if the surface
	204	+	30 property above the storage facility crosses a:
	205	+	31 (1) parcel that has an existing private easement;
	206	+	32 (2) parcel for which a private easement is required; or
	207	+	33 (3) private right-of-way.
	208	+	34 SECTION 3. IC 14-39-1-12, AS ADDED BY P.L.150-2011,
	209	+	35 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	210	+	36 JULY 1, 2025]: Sec. 12. The department shall deposit fee revenue
	211	+	37 received under section 4(a)(1) of this chapter in the oil and gas
	212	+	38 environmental fund established by IC 14-37-10-2. state general fund.
	213	+	39 SECTION 4. IC 14-39-2-2, AS ADDED BY P.L.163-2022,
	214	+	40 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	215	+	41 JULY 1, 2025]: Sec. 2. (a) The following definitions apply throughout
	216	+	42 this chapter.
	217	+	ES 457—LS 7454/DI 150 5
	218	+	1 (b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
	219	+	2 (c) "Carbon dioxide injection well" refers to a well that is used to
	220	+	3 inject carbon dioxide into a reservoir for carbon sequestration pursuant
	221	+	4 to a UIC Class VI permit.
	222	+	5 (d) "Carbon dioxide plume" means the extent of an underground
	223	+	6 three-dimensional injected carbon dioxide stream.
	224	+	7 (e) "Carbon sequestration" means the underground storage of carbon
	225	+	8 dioxide in a reservoir.
	226	+	9 (f) "Carbon sequestration project" means any project that involves
	227	+	10 the underground storage of carbon dioxide in a reservoir pursuant to at
	228	+	11 least one (1) UIC Class VI permit.
	229	+	12 (g) "Mineral lessee" means a lessee identified by the records of the
	230	+	13 recorder of deeds for each county containing a portion of the proposed
	231	+	14 reservoir who holds an interest in minerals on real property that are
	232	+	15 located above, below, or within the proposed reservoir that has been
	233	+	16 severed from the surface estate by:
	234	+	17 (1) grant;
	235	+	18 (2) exception;
	236	+	19 (3) reservation;
	237	+	20 (4) lease; or
	238	+	21 (5) any other means.
	239	+	22 (h) "Mineral owner" means an owner identified by the records of the
	240	+	23 recorder of deeds for each county containing a portion of the proposed
	241	+	24 reservoir who holds an interest in minerals on real property that are
	242	+	25 located above, below, or within the proposed reservoir that has been
	243	+	26 severed from the surface estate by:
	244	+	27 (1) grant;
	245	+	28 (2) exception;
	246	+	29 (3) reservation;
	247	+	30 (4) lease; or
	248	+	31 (5) any other means.
	249	+	32 (i) "Pore space" means subsurface cavities or voids that can be used
	250	+	33 as a storage space for carbon dioxide.
	251	+	34 (j) "Pore space owner" means:
	252	+	35 (1) a person;
	253	+	36 (2) a trust;
	254	+	37 (3) a corporation; or
	255	+	38 (4) another entity;
	256	+	39 that has title to, a right to, or an interest in pore space.
	257	+	40 (k) "Reservoir" means a subsurface:
	258	+	41 (1) sedimentary stratum;
	259	+	42 (2) formation;
	260	+	ES 457—LS 7454/DI 150 6
	261	+	1 (3) aquifer;
	262	+	2 (4) cavity; or
	263	+	3 (5) void;
	264	+	4 that is naturally or artificially created for the use of, or is capable of
	265	+	5 being made suitable for, injecting and storing carbon dioxide.
	266	+	6 (l) "Storage facility" means the subsurface area consisting of the
	267	+	7 extent of a carbon dioxide plume which is required to be delineated on
	268	+	8 an approved UIC Class VI permit or an amendment to a UIC Class VI
	269	+	9 permit of a storage operator.
	270	+	10 (m) "Storage operator" means:
	271	+	11 (1) a person;
	272	+	12 (2) a trust;
	273	+	13 (3) a corporation; or
	274	+	14 (4) another entity;
	275	+	15 that operates a carbon sequestration project.
	276	+	16 (n) "Surface or subsurface property interest owner" means a
	277	+	17 property interest owner identified by the records of the recorder of
	278	+	18 deeds for each county containing a portion of the proposed storage
	279	+	19 facility who holds a fee simple interest or other freehold interest in the
	280	+	20 surface or subsurface of the property, which may include mineral
	281	+	21 rights. The term does not include the owner of a right-of-way, an
	282	+	22 easement, or a leasehold.
	283	+	23 (o) "UIC Class VI permit" means a permit issued under the federal
	284	+	24 Safe Drinking Water Act's Underground Injection Control program that
	285	+	25 allows:
	286	+	26 (1) a person;
	287	+	27 (2) a trust;
	288	+	28 (3) a corporation; or
	289	+	29 (4) another entity;
	290	+	30 to construct or operate a carbon dioxide injection well.
	291	+	31 (p) "Underground storage of carbon dioxide" means the injection
	292	+	32 and storage of carbon dioxide into underground strata and formations
	293	+	33 pursuant to at least one (1) UIC Class VI permit.
	294	+	34 SECTION 5. IC 14-39-2-4, AS ADDED BY P.L.163-2022,
	295	+	35 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	296	+	36 JULY 1, 2025]: Sec. 4. (a) If at least two (2) pore space owners own
	297	+	37 pore space located within a proposed carbon dioxide storage area of a
	298	+	38 storage facility, the owners may agree to integrate their interests to
	299	+	39 develop the pore space as a proposed storage facility for the
	300	+	40 underground storage of carbon dioxide.
	301	+	41 (b) If all of the owners of the pore space under subsection (a) do not
	302	+	42 agree to integrate their interests, the department may issue an order
	303	+	ES 457—LS 7454/DI 150 7
	304	+	1 requiring the owners to integrate their interests and to develop the pore
	305	+	2 space as a proposed storage facility for the underground storage of
	306	+	3 carbon dioxide to serve the public interest, prevent waste, protect
	307	+	4 correlative rights, and facilitate the efficient and effective use of
	308	+	5 natural resources subject to the findings under subsection (c).
	309	+	6 (c) Before issuing an order under subsection (b), the department
	310	+	7 must make the following findings:
	311	+	8 (1) That a storage operator: has been issued:
	312	+	9 (A) filed a complete UIC Class VI permit or an amended
	313	+	10 complete UIC Class VI permit; and
	314	+	11 (B) submitted all the necessary information to the United
	315	+	12 States Environmental Protection Agency for the agency to
	316	+	13 process the storage operator's permit application.
	317	+	14 (2) That the storage operator has made a good faith effort to
	318	+	15 obtain the consent of all pore space owners located within the
	319	+	16 proposed storage facility.
	320	+	17 (3) That the storage operator has obtained the consent of the
	321	+	18 owners of the pore space underlying at least seventy percent
	322	+	19 (70%) of the surface area above the proposed storage facility or
	323	+	20 amended proposed storage facility.
	324	+	21 (4) That all pore space owners who do not agree to integrate their
	325	+	22 interests to develop the pore space as a proposed storage facility
	326	+	23 for the underground storage of carbon dioxide are equitably
	327	+	24 compensated.
	328	+	25 (d) A right to pore space granted by this section does not confer a
	329	+	26 right to enter upon, or otherwise use, the surface of the land which is
	330	+	27 integrated under this section unless provided in an order requiring the
	331	+	28 owners to integrate their interests and to develop the pore space as a
	332	+	29 proposed storage facility for the underground storage of carbon
	333	+	30 dioxide.
	334	+	31 (e) An involuntary integration order issued by the department
	335	+	32 is effective fifteen (15) days after the applicant is issued a UIC
	336	+	33 Class VI permit.
	337	+	34 SECTION 6. IC 14-39-2-5, AS ADDED BY P.L.163-2022,
	338	+	35 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	339	+	36 JULY 1, 2025]: Sec. 5. (a) Carbon sequestration projects are authorized
	340	+	37 in Indiana for the purposes of:
	341	+	38 (1) injecting carbon dioxide into the pore space of an underground
	342	+	39 storage facility through at least one (1) carbon dioxide injection
	343	+	40 well pursuant to a UIC Class VI permit; and
	344	+	41 (2) employing the underground storage of carbon dioxide.
	345	+	42 (b) A storage operator may not operate a carbon sequestration
	346	+	ES 457—LS 7454/DI 150 8
	347	+	1 project in Indiana without:
	348	+	2 (1) a UIC Class VI permit; and
	349	+	3 (2) a valid permit issued by the department.
	350	+	4 (c) If a carbon sequestration project is owned by an entity other than
	351	+	5 the storage operator, the storage operator shall be responsible for
	352	+	6 obtaining a permit for a carbon sequestration project under subsection
	353	+	7 (b). A permit for a carbon sequestration project may be transferred or
	354	+	8 assigned from one (1) storage operator to another storage operator.
	355	+	9 (d) An individual may apply to the department for a permit for a
	356	+	10 carbon sequestration project in a form and manner prescribed by the
	357	+	11 department.
	358	+	12 (e) An application under subsection (d) must include the following:
	359	+	13 (1) A filing fee of one thousand dollars ($1,000). equal to the
	360	+	14 product of:
	361	+	15 (A) the given amount of metric tons of carbon dioxide
	362	+	16 proposed to be injected into the storage facility during the
	363	+	17 first ten (10) years of the carbon sequestration project;
	364	+	18 multiplied by
	365	+	19 (B) one cent ($0.01).
	366	+	20 The filing fee amount determined under this subdivision shall
	367	+	21 be collected by the department and deposited in the state
	368	+	22 general fund.
	369	+	23 (2) The signature of the applicant.
	370	+	24 (3) A statement verifying that the information submitted is true,
	371	+	25 accurate, and complete to the best of applicant's knowledge.
	372	+	26 (4) Information illustrating that the applicant has the financial,
	373	+	27 managerial, and technical ability to construct, operate, and
	374	+	28 maintain a carbon sequestration project.
	375	+	29 (5) Information illustrating that the applicant or the contractors or
	376	+	30 subcontractors of the applicant have the requisite expertise in
	377	+	31 constructing, operating, and maintaining a carbon sequestration
	378	+	32 project.
	379	+	33 (6) Documentation to the department describing the scope of the
	380	+	34 proposed carbon sequestration project.
	381	+	35 (7) A statement describing how the applicant will construct,
	382	+	36 operate, and maintain the proposed carbon sequestration project
	383	+	37 in accordance with applicable local, state, and federal law,
	384	+	38 including federal and state safety regulations and rules governing
	385	+	39 the construction, operation, and maintenance of the carbon
	386	+	40 sequestration project, and related facilities and equipment, to
	387	+	41 ensure the safety of the carbon sequestration project employees
	388	+	42 and the public.
	389	+	ES 457—LS 7454/DI 150 9
	390	+	1 (8) A statement that the interests of a mineral lessee or mineral
	391	+	2 owner will not be adversely affected. If a mineral owner or
	392	+	3 mineral lessee is adversely affected, the adversely affected
	393	+	4 mineral owner or mineral lessee and the applicant may enter into
	394	+	5 an agreement under section 4 of this chapter.
	395	+	6 (f) After the first ten (10) years of a carbon sequestration
	396	+	7 project, if the carbon sequestration project injects more metric
	397	+	8 tons of carbon dioxide into the storage facility than was proposed
	398	+	9 under the original application under subsection (e), the storage
	399	+	10 operator shall pay the filing fee under subsection (e) for the
	400	+	11 additional metric tons of carbon dioxide injected into the storage
	401	+	12 facility during the first ten (10) years of the carbon sequestration
	402	+	13 project.
	403	+	14 (g) A fee paid under this section is not refundable by the
	404	+	15 department.
	405	+	16 SECTION 7. IC 14-39-2-6, AS ADDED BY P.L.163-2022,
	406	+	17 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	407	+	18 JULY 1, 2025]: Sec. 6. (a) The department shall review an application
	408	+	19 submitted under section 5(d) of this chapter. If the department
	409	+	20 determines that the application submitted under section 5(d) of this
	410	+	21 chapter is complete, the department shall notify the applicant.
	411	+	22 (b) The department shall return an application to the applicant if the
	412	+	23 department determines that the application is incomplete, inaccurate,
	413	+	24 or both.
	414	+	25 (c) If the department returns an application to an applicant under
	415	+	26 subsection (b), the department shall inform the applicant in writing that
	416	+	27 the applicant may file a corrected application not more than sixty (60)
	417	+	28 days after the receipt of the returned application.
	418	+	29 (d) Upon receiving a corrected application under this section, the
	419	+	30 department shall review the application.
	420	+	31 (e) Upon receiving notification that the corrected an application is
	421	+	32 complete, the applicant shall:
	422	+	33 (1) not more than sixty (60) days after receiving the notice under
	423	+	34 this subsection:
	424	+	35 (A) place a copy of the corrected application in a public library
	425	+	36 located in each county in which the carbon sequestration
	426	+	37 project is proposed to be located for public inspection;
	427	+	38 (B) publish notice under IC 5-3-1 in each county in which the
	428	+	39 carbon sequestration project is proposed to be located of the
	429	+	40 name and address of each library in which a copy of the
	430	+	41 corrected application is placed as required by clause (A); and
	431	+	42 (C) provide notice to potentially affected parties pursuant to
	432	+	ES 457—LS 7454/DI 150 10
	433	+	1 312 IAC 29-5-2; under rules adopted by the commission for
	434	+	2 carbon sequestration projects; and
	435	+	3 (2) provide to the department proof of publication of notice under
	436	+	4 this subsection not more than thirty (30) days after the publication
	437	+	5 or delivery of the notice.
	438	+	6 (f) Not later than ninety (90) days after receiving the proof of
	439	+	7 publication of notice under subsection (e), the department shall notify
	440	+	8 the applicant in writing that:
	441	+	9 (1) the department has approved the application; or
	442	+	10 (2) the department has denied the application.
	443	+	11 SECTION 8. IC 14-39-2-9, AS ADDED BY P.L.163-2022,
	444	+	12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	445	+	13 JULY 1, 2025]: Sec. 9. (a) A storage operator shall pay the department
	446	+	14 a fee under subsections (b) and (c) for every metric ton of carbon
	447	+	15 dioxide injected for storage.
	448	+	16 (b) The storage operator shall provide the department with an
	449	+	17 estimate of the amount of carbon dioxide to be injected into a storage
	450	+	18 facility for the period of the permit at the time of application for a
	451	+	19 carbon sequestration project permit.
	452	+	20 (c) (b) Not later than sixty (60) days after the end of a calendar
	453	+	21 year, a storage operator shall pay annually to the department a fee of
	454	+	22 eight cents ($0.08) per metric ton of carbon dioxide estimated to be
	455	+	23 injected into a the storage facility for the previous calendar year.
	456	+	24 The department shall deposit the fee into the state general fund.
	457	+	25 (d) A storage operator shall reconcile the previous calendar year's
	458	+	26 payment with the volume of carbon dioxide actually injected into the
	459	+	27 storage facility the previous calendar year. The storage operator shall
	460	+	28 submit payment for the amount of carbon dioxide injected into a
	461	+	29 storage facility less the amount paid the previous calendar year.
	462	+	30 (e) The department shall refund a storage operator any overpayment
	463	+	31 in the current year from the previous calendar year.
	464	+	32 (c) Not later than sixty (60) days after the end of the calendar
	465	+	33 year in which a storage operator begins injecting carbon dioxide
	466	+	34 into a storage facility, the storage operator shall pay to the
	467	+	35 department a one (1) time fee for the carbon dioxide injected into
	468	+	36 the storage facility equal to the product of:
	469	+	37 (1) the given amount of metric tons of carbon dioxide
	470	+	38 proposed to be injected into the storage facility during the
	471	+	39 first ten (10) years of the carbon sequestration project;
	472	+	40 multiplied by
	473	+	41 (2) five cents ($0.05).
	474	+	42 The department shall deposit the fee into the state general fund.
	475	+	ES 457—LS 7454/DI 150 11
	476	+	1 SECTION 9. IC 14-39-2-10, AS ADDED BY P.L.163-2022,
	477	+	2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	478	+	3 JUNE 29, 2025]: Sec. 10. (a) The carbon dioxide storage facility trust
	479	+	4 fund is established.
	480	+	5 (b) The fee collected under section 9 of this chapter must be
	481	+	6 deposited in the carbon dioxide storage facility trust fund established
	482	+	7 by subsection (a).
	483	+	8 (c) The carbon dioxide storage facility trust fund must be
	484	+	9 maintained as a special fund and all money in the fund is appropriated
	485	+	10 and may be used only to defray the costs incurred by the department for
	486	+	11 the long term monitoring and management of a carbon sequestration
	487	+	12 project.
	488	+	13 (d) On June 30, 2025, the budget agency shall transfer all money
	489	+	14 in the fund to the state general fund.
	490	+	15 (e) This section expires July 1, 2025.
	491	+	16 SECTION 10. IC 14-39-2-11, AS ADDED BY P.L.163-2022,
	492	+	17 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	493	+	18 JULY 1, 2025]: Sec. 11. (a) A mineral owner or mineral lessee shall
	494	+	19 provide written notice to a storage operator at least thirty-one (31) days
	495	+	20 prior to drilling a well if the mineral owner or mineral lessee wishes to
	496	+	21 drill a well not more than:
	497	+	22 (1) three hundred thirty (330) feet from the surface location of a
	498	+	23 well pursuant to a UIC Class VI permit; or
	499	+	24 (2) five hundred (500) feet from the uppermost confining zone of
	500	+	25 a carbon sequestration facility within the boundary of the
	501	+	26 storage facility pursuant to a UIC Class VI permit.
	502	+	27 Drilling permitted by this subsection must be conducted in cooperation
	503	+	28 with a storage operator.
	504	+	29 (b) A well drilled under subsection (a) must be drilled in
	505	+	30 compliance with the requirements of:
	506	+	31 (1) the department to preserve the integrity of the storage facility;
	507	+	32 (2) a UIC Class VI permit; and
	508	+	33 (3) any other applicable regulations.
	509	+	34 SECTION 11. IC 14-39-2-11.5 IS ADDED TO THE INDIANA
	510	+	35 CODE AS A NEW SECTION TO READ AS FOLLOWS
	511	+	36 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) The department shall
	512	+	37 issue a permit for a person to:
	513	+	38 (1) drill, deepen, or operate a nonproduction well drilled to
	514	+	39 investigate and obtain data on geological, structural, or
	515	+	40 hydrogeological stratigraphic intervals for the suitability of
	516	+	41 underground formations for carbon sequestration; or
	517	+	42 (2) convert a well for oil and gas purposes (as defined by
	518	+	ES 457—LS 7454/DI 150 12
	519	+	1 IC 14-8-2-317) for carbon dioxide investigations.
	520	+	2 (b) A person issued a permit under subsection (a) shall:
	521	+	3 (1) comply with the conditions of a permit as determined by
	522	+	4 the department;
	523	+	5 (2) correct adverse environmental impact that results from
	524	+	6 noncompliance with a permit; and
	525	+	7 (3) provide proper operation and maintenance for facilities,
	526	+	8 systems of treatment, and control and related appurtenances
	527	+	9 that are installed or used by the person to comply with the
	528	+	10 permit conditions.
	529	+	11 (c) A permit issued under this section does not convey to the
	530	+	12 holder a property right or an exclusive privilege.
	531	+	13 (d) An application for a permit under subsection (a) must
	532	+	14 include the following:
	533	+	15 (1) The name, address, telephone number, and electronic mail
	534	+	16 address of the applicant.
	535	+	17 (2) The signature of the applicant, or the applicant's designee,
	536	+	18 that is the operator named in the permit application.
	537	+	19 (3) The plat of land or lease where the well is to be located
	538	+	20 with the property boundaries, lease lines, storage area tract
	539	+	21 boundary, and acreage within the tract.
	540	+	22 (4) The location of the proposed well as certified by a
	541	+	23 professional surveyor registered under IC 25-21.5.
	542	+	24 (5) The surface elevation of the proposed well and the method
	543	+	25 used for determining that elevation.
	544	+	26 (6) The depth of the proposed well.
	545	+	27 (7) Proof the applicant executed a surface use agreement with
	546	+	28 the surface owner and an agreement demonstrating the
	547	+	29 applicant is not trespassing on the subsurface estate, if
	548	+	30 different from the surface estate.
	549	+	31 (8) Any other information required by the department that is
	550	+	32 necessary to administer this section.
	551	+	33 (e) An applicant shall submit the following with an application
	552	+	34 for a permit under this section:
	553	+	35 (1) A cash bond for each well of ten dollars ($10) for each foot
	554	+	36 of well depth.
	555	+	37 (2) A permit fee of two hundred fifty dollars ($250) payable to
	556	+	38 the department.
	557	+	39 An amount collected under this subsection must be deposited in the
	558	+	40 state general fund.
	559	+	41 (f) The department shall incorporate in the permit the terms,
	560	+	42 conditions, and covenants the department considers necessary to
	561	+	ES 457—LS 7454/DI 150 13
	562	+	1 protect the public interest.
	563	+	2 (g) Except as provided in subsection (h), the department shall
	564	+	3 issue a permit under this section not later than fifteen (15) days
	565	+	4 after the applicant:
	566	+	5 (1) complies with this article and rules adopted under this
	567	+	6 article; and
	568	+	7 (2) submits a complete permit application to the department;
	569	+	8 unless the fifteen (15) day deadline is otherwise waived by the
	570	+	9 applicant.
	571	+	10 (h) The department may deny a permit under this section if the
	572	+	11 applicant, or an officer, a partner, or a director of the applicant:
	573	+	12 (1) is in violation of this article or would be in violation if the
	574	+	13 permit were issued; or
	575	+	14 (2) has demonstrated a pattern of willful violations of this
	576	+	15 article;
	577	+	16 indicating an intention not to comply with this article.
	578	+	17 (i) A permit issued by the department under this section is
	579	+	18 effective until:
	580	+	19 (1) the well is plugged and abandoned;
	581	+	20 (2) the well is converted to another type of well; or
	582	+	21 (3) the permit is revoked.
	583	+	22 (j) A permit issued by the department under this section expires
	584	+	23 one (1) year after the date of issuance if drilling the well has not
	585	+	24 commenced.
	586	+	25 (k) The department may revoke a permit issued under this
	587	+	26 section.
	588	+	27 (l) A person holding a permit under this section shall plug and
	589	+	28 abandon a well that is no longer in operation under a permit,
	590	+	29 unless the well is converted to a carbon dioxide injection well or
	591	+	30 monitoring well under a UIC Class Vl permit.
	592	+	31 (m) A person may defer plugging and abandoning a well under
	593	+	32 this section while an application is pending to convert the well into
	594	+	33 a UIC Class VI permit carbon dioxide injection well or monitoring
	595	+	34 well under this section, provided that the well is temporarily
	596	+	35 capped and maintained in the manner prescribed by the
	597	+	36 department under the permit.
	598	+	37 (n) After a well is plugged and abandoned or transferred, the
	599	+	38 applicant who paid the cash bond under subsection (e) may apply
	600	+	39 for a request a total or partial bond release from the department.
	601	+	40 The director of the division of reclamation shall:
	602	+	41 (1) release the bond as requested; or
	603	+	42 (2) deny the bond release.
	604	+	ES 457—LS 7454/DI 150 14
	605	+	1 (o) A determination under this section is subject to review and
	606	+	2 appeal under IC 4-21.5.
	607	+	3 (p) The commission may adopt rules under IC 4-22-2 to
	608	+	4 implement this section.
	609	+	5 SECTION 12. IC 14-39-2-13, AS ADDED BY P.L.163-2022,
	610	+	6 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	611	+	7 JULY 1, 2025]: Sec. 13. (a) A certificate of project completion shall be
	612	+	8 issued upon the application from the storage operator if the department
	613	+	9 finds that the storage operator does the following:
	614	+	10 (1) The storage operator is in compliance with all applicable laws
	615	+	11 governing the storage facility.
	616	+	12 (2) The storage operator shows that the storage facility is
	617	+	13 reasonably expected to retain the carbon dioxide stored therein.
	618	+	14 (3) The storage operator shows that the carbon dioxide in the
	619	+	15 storage facility is stable by showing that either:
	620	+	16 (A) the stored carbon dioxide is essentially stationary; or
	621	+	17 (B) if the stored carbon migrates, migration will be unlikely to
	622	+	18 cross the boundaries of the storage facility.
	623	+	19 (4) The storage operator shows that all wells, equipment, and
	624	+	20 facilities used after the closure period are in good condition and
	625	+	21 retain mechanical integrity.
	626	+	22 (5) The storage operator shows that injection wells have been
	627	+	23 plugged.
	628	+	24 (6) The storage operator shows that equipment and facilities, not
	629	+	25 including fixed structures and long term monitoring equipment
	630	+	26 and wells, have been removed.
	631	+	27 (7) The storage operator proves that the reclamation work
	632	+	28 required by the department where the project ceases to inject
	633	+	29 carbon dioxide is completed.
	634	+	30 (8) The following with respect to site closure:
	635	+	31 (A) The storage operator has provided a notice of intent for
	636	+	32 site closure to the United States Environmental Protection
	637	+	33 Agency.
	638	+	34 (B) The United States Environmental Protection Agency has
	639	+	35 authorized site closure.
	640	+	36 (C) The storage operator has provided to the United States
	641	+	37 Environmental Protection Agency:
	642	+	38 (i) the site closure report required under 40 CFR 146.93(f)
	643	+	39 (as in effect January 1, 2022); or
	644	+	40 (ii) a comparable report to the state regulatory body if the
	645	+	41 state assumes primacy for UIC Class VI permitting.
	646	+	42 (b) The department shall issue a certificate of project completion not
	647	+	ES 457—LS 7454/DI 150 15
	648	+	1 later than one hundred eighty (180) days after receiving an application
	649	+	2 from the storage operator. If the department determines that the
	650	+	3 application for a certificate of project completion is incomplete,
	651	+	4 inaccurate, or both, the department shall return the application to the
	652	+	5 storage operator.
	653	+	6 (c) If the department returns the application to the storage operator
	654	+	7 under subsection (b), the department shall inform the storage operator,
	655	+	8 in writing, of the deficiencies of the submitted application and inform
	656	+	9 the storage operator of the right to file a corrected application with the
	657	+	10 department.
	658	+	11 (d) Once a certificate of completion is issued, the following occurs:
	659	+	12 (1) Except as provided in subsection (e), the state will assume
	660	+	13 ownership of and responsibility for the storage facility.
	661	+	14 (2) The state will assume responsibility for all regulatory
	662	+	15 requirements associated with the storage facility, and the storage
	663	+	16 operator and the owner of the storage facility are released from
	664	+	17 responsibility for all regulatory requirements associated with the
	665	+	18 storage facility.
	666	+	19 (3) The state will assume any potential liability associated with
	667	+	20 the storage facility.
	668	+	21 (4) The department may, at a reasonable time, enter property
	669	+	22 where a carbon dioxide injection well or monitoring well for
	670	+	23 the storage facility is located to inspect and maintain the
	671	+	24 carbon dioxide injection well or storage facility. Except in the
	672	+	25 event of an emergency, the department shall provide notice to
	673	+	26 the surface owner of the date the department intends to enter
	674	+	27 the property at least five (5) business days before the
	675	+	28 department intends to enter the property. The notice must be
	676	+	29 issued by:
	677	+	30 (A) United States mail;
	678	+	31 (B) private courier;
	679	+	32 (C) personal delivery; or
	680	+	33 (D) any other manner agreed to in writing between the
	681	+	34 department and the surface owner.
	682	+	35 (e) The state may only:
	683	+	36 (1) assume ownership of and responsibility for; or
	684	+	37 (2) accept transfer of;
	685	+	38 a storage facility for which interest in or rights to property are
	686	+	39 conveyed by lease agreement if the lessor and lessee agree to
	687	+	40 transfer the storage facility in the lease agreement to the state. The
	688	+	41 state only assumes ownership of and responsibility for the storage
	689	+	42 facility and does not assume ownership of or responsibility for any
	690	+	ES 457—LS 7454/DI 150 16
	691	+	1 other provisions of the agreement.
	692	+	2 (e) (f) Unless there is documentation to the contrary, the storage
	693	+	3 operator has title to the carbon dioxide injected into and stored in a
	694	+	4 storage facility, and the storage operator holds title until the department
	695	+	5 issues a certificate of completion.
	696	+	6 SECTION 13. IC 14-39-2-15 IS ADDED TO THE INDIANA
	697	+	7 CODE AS A NEW SECTION TO READ AS FOLLOWS
	698	+	8 [EFFECTIVE JULY 1, 2025]: Sec. 15. (a) A violation of a
	699	+	9 requirement under this article is subject to a civil penalty under
	700	+	10 this section.
	701	+	11 (b) Except as provided in subsection (d), a civil penalty for a
	702	+	12 violation under this article is as follows:
	703	+	13 (1) One thousand dollars ($1,000) for a first violation.
	704	+	14 (2) Five thousand dollars ($5,000) for a second violation.
	705	+	15 (3) Ten thousand dollars ($10,000) for a third and each
	706	+	16 subsequent violation.
	707	+	17 (c) If a person issued a civil penalty under subsection (b) for a
	708	+	18 violation of a requirement under this article does not remediate the
	709	+	19 violation in the time prescribed by the department, the person is
	710	+	20 subject to a cessation order issued by the department. The civil
	711	+	21 penalty for a cessation order is seven hundred fifty dollars ($750)
	712	+	22 each day for not more than thirty (30) days.
	713	+	23 (d) A person who does not obtain the proper certificates or
	714	+	24 permits from the department under this article:
	715	+	25 (1) is subject to a civil penalty of ten thousand dollars
	716	+	26 ($10,000); and
	717	+	27 (2) shall be issued a cessation order by the department in the
	718	+	28 amount of seven hundred fifty dollars ($750) each day for not
	719	+	29 more than thirty (30) days.
	720	+	30 (e) A civil penalty assessed under this section is subject to review
	721	+	31 and appeal under IC 4-21.5.
	722	+	32 (f) The department shall deposit civil penalties collected under
	723	+	33 this chapter in the state general fund.
	724	+	34 SECTION 14. An emergency is declared for this act.
	725	+	ES 457—LS 7454/DI 150 17
	726	+	COMMITTEE REPORT
	727	+	Mr. President: The Senate Committee on Natural Resources, to
	728	+	which was referred Senate Bill No. 457, has had the same under
	729	+	consideration and begs leave to report the same back to the Senate with
	730	+	the recommendation that said bill be AMENDED as follows:
	731	+	Page 1, between the enacting clause and line 1, begin a new
	732	+	paragraph and insert:
	733	+	"SECTION 1. IC 14-39-1-4, AS AMENDED BY P.L.163-2022,
16	734		SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17	735		JULY 1, 2025]: Sec. 4. (a) A carbon dioxide transmission pipeline
18	736		company may apply to the department for issuance of a carbon dioxide
19	737		transmission pipeline certificate of authority. The department shall
20	738		prescribe the form of the application, which must:
21	739		(1) include a filing fee of one thousand dollars ($1,000);
22	740		(2) be signed by a responsible officer of the company;
23	741		(3) include a statement verifying that the information submitted
24	742		is true, accurate, and complete to the best of that responsible
25	743		officer's knowledge and belief; and
26	744		(4) include all information necessary for the department to find
27	745		the following:
28	746		(A) That the applicant or the contractor or subcontractor of the
29	747		applicant has the financial, managerial, and technical ability
30	748		to construct, operate, and maintain a carbon dioxide
31	749		transmission pipeline in Indiana.
32		-	(B) That the applicant~~, or~~ the ~~contractor or subcontractor of~~
33		-	~~the applicant~~, ~~has the requisite experience constructing,~~
34		-	~~operating, and maintaining a transmission~~ pipeline.
	750	+	(B) That the applicant has the requisite experience
	751	+	constructing, operating, and maintaining a transmission
	752	+	pipeline.
35	753		(C) That the applicant has entered into a contract to transport
36		-	SEA 457 2
37	754		carbon dioxide by pipeline in Indiana with:
38	755		(i) at least one (1) producer of carbon dioxide located in
39	756		Indiana; and
40	757		(ii) unless all of the carbon dioxide to be transported in the
41	758		proposed carbon dioxide transmission pipeline is for the
42	759		applicant's own use or account, at least one (1) end user or
43	760		storer of carbon dioxide.
44	761		(D) That the applicant has provided documentation to the
45	762		department showing the proposed length, diameter, and
46	763		location of the proposed carbon dioxide transmission pipeline
47	764		in Indiana.
48	765		(E) That the applicant will construct, operate, and maintain the
49	766		proposed carbon dioxide transmission pipeline in accordance
	767	+	ES 457—LS 7454/DI 150 18
50	768		with applicable local, state, and federal law, including federal
51	769		and state safety regulations and rules governing the
52	770		construction, operation, and maintenance of carbon dioxide
53	771		transmission pipelines, and related facilities and equipment, to
54	772		ensure the safety of pipeline employees and the public.
55	773		(F) That the applicant has signed a statement indicating that
56	774		the applicant agrees to construct a proposed carbon
57	775		dioxide transmission pipeline in a manner compliant with
58	776		the guidelines adopted under IC 8-1-22.6-8 by the pipeline
59	777		safety division of the Indiana utility regulatory
60	778		commission.
61	779		(i) entered into an agreement with the Indiana utility
62	780		regulatory commission concerning the mitigation of
63	781		agricultural impacts associated with the construction of the
64	782		proposed carbon dioxide transmission pipeline; or
65	783		(ii) signed a statement indicating that the applicant agrees to
66	784		use, in connection with the construction of the proposed
67	785		carbon dioxide transmission pipeline, the guidelines adopted
68	786		under IC 8-1-22.6-8 by the pipeline safety division of the
69	787		Indiana utility regulatory commission.
70	788		(b) The department shall review an application filed under
71	789		subsection (a). Subject to subsection (f), if the department determines
72	790		that the application is incomplete or inaccurate, or both, the department
73	791		shall return the application to the applicant, informing the applicant in
74	792		writing of the applicant's right to file a corrected application with the
75	793		department. If the department determines that the application is
76	794		complete and accurate, the department shall provide notice to the
77	795		applicant of:
78	796		(1) that determination; and
79		-	SEA 457 3
80	797		(2) the date, time, and location of the public information meeting
81	798		to be held under subsection (d).
82	799		(c) The applicant shall:
83	800		(1) upon receipt of a notice under subsection (b):
84	801		(A) place for public inspection a copy of the application in a
85	802		public library located in each county in which the carbon
86	803		dioxide transmission pipeline is proposed to be located; and
87	804		(B) publish notice, in the same manner that would be required
88	805		if the applicant were subject to IC 5-3-1, in each county in
89	806		which the carbon dioxide transmission pipeline is proposed to
90	807		be located, of:
91	808		(i) the name and address of each library in which a copy of
92	809		the application is placed under clause (A); and
	810	+	ES 457—LS 7454/DI 150 19
93	811		(ii) the date, time, and location of the public information
94	812		meeting to be held under subsection (d);
95	813		(2) provide to the department proof of publication of notice under
96	814		subdivision (1)(B); and
97	815		(3) have a representative present at the public information
98	816		meeting held under subsection (d).
99	817		(d) The department shall:
100	818		(1) conduct a public information meeting in the county seat of one
101	819		(1) of the counties, as determined by the department, in which the
102	820		proposed carbon dioxide transmission pipeline will be located;
103	821		and
104	822		(2) provide an opportunity at the meeting for members of the
105	823		public to be briefed and to ask questions about the proposed
106	824		carbon dioxide transmission pipeline.
107	825		(e) Not later than ninety (90) days after the public information
108	826		meeting held under subsection (d), the department shall notify the
109	827		applicant in writing that:
110	828		(1) the department:
111	829		(A) has made the findings described in subsection (a)(4); and
112	830		(B) has approved the application; or
113	831		(2) the department:
114	832		(A) has determined that the department is unable to make the
115	833		findings described in subsection (a)(4); and
116	834		(B) has disapproved the application.
117	835		(f) The department shall process a corrected application that is filed
118	836		as permitted under subsection (b) in the same manner the department
119	837		processes an initially filed application under subsection (a).
120	838		(g) If the department fails to act under subsection (e) not later than
121	839		ninety (90) days after the public information meeting held under
122		-	SEA 457 4
123	840		subsection (d), the application is considered to be approved by the
124	841		department.
125	842		(h) If:
126	843		(1) the department approves the application under subsection
127	844		(e)(1); or
128	845		(2) the application is considered to be approved as described in
129	846		subsection (g);
130	847		the department shall issue to the applicant a carbon dioxide
131		-	transmission pipeline certificate of authority.
132		-	SECTION 2. IC 14-39-1-4.5 IS ADDED TO THE INDIANA CODE
133		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
134		-	1, 2025]: Sec. 4.5. (a) A carbon dioxide transmission pipeline
135		-	company is not required to obtain a carbon dioxide transmission
136		-	pipeline certificate of authority under section 4 of this chapter if
137		-	the carbon dioxide transmission pipeline:
138		-	(1) begins and ends on the surface property above the storage
139		-	facility; and
140		-	(2) does not cross:
141		-	(A) public property;
142		-	(B) a public right-of-way; or
143		-	(C) a parcel for which there is an existing easement or for
144		-	which an easement is required.
145		-	(b) A carbon dioxide transmission pipeline company is not
146		-	required to obtain a carbon dioxide transmission pipeline
147		-	certificate of authority under section 4 of this chapter if the surface
148		-	property above the storage facility crosses a:
149		-	(1) parcel that has an existing private easement;
150		-	(2) parcel for which a private easement is required; or
151		-	(3) private right-of-way.
152		-	SECTION 3. IC 14-39-1-12, AS ADDED BY P.L.150-2011,
153		-	SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
154		-	JULY 1, 2025]: Sec. 12. The department shall deposit fee revenue
155		-	received under section 4(a)(1) of this chapter in the oil and gas
156		-	environmental fund established by IC 14-37-10-2. state general fund.
157		-	SECTION 4. IC 14-39-2-2, AS ADDED BY P.L.163-2022,
158		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
159		-	JULY 1, 2025]: Sec. 2. (a) The following definitions apply throughout
160		-	this chapter.
161		-	(b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
162		-	(c) "Carbon dioxide injection well" refers to a well that is used to
163		-	inject carbon dioxide into a reservoir for carbon sequestration pursuant
164		-	to a UIC Class VI permit.
165		-	SEA 457 5
166		-	(d) "Carbon dioxide plume" means the extent of an underground
167		-	three-dimensional injected carbon dioxide stream.
168		-	(e) "Carbon sequestration" means the underground storage of carbon
169		-	dioxide in a reservoir.
170		-	(f) "Carbon sequestration project" means any project that involves
171		-	the underground storage of carbon dioxide in a reservoir pursuant to at
172		-	least one (1) UIC Class VI permit.
173		-	(g) "Mineral lessee" means a lessee identified by the records of the
174		-	recorder of deeds for each county containing a portion of the proposed
175		-	reservoir who holds an interest in minerals on real property that are
176		-	located above, below, or within the proposed reservoir that has been
177		-	severed from the surface estate by:
178		-	(1) grant;
179		-	(2) exception;
180		-	(3) reservation;
181		-	(4) lease; or
182		-	(5) any other means.
183		-	(h) "Mineral owner" means an owner identified by the records of the
184		-	recorder of deeds for each county containing a portion of the proposed
185		-	reservoir who holds an interest in minerals on real property that are
186		-	located above, below, or within the proposed reservoir that has been
187		-	severed from the surface estate by:
188		-	(1) grant;
189		-	(2) exception;
190		-	(3) reservation;
191		-	(4) lease; or
192		-	(5) any other means.
193		-	(i) "Pore space" means subsurface cavities or voids that can be used
194		-	as a storage space for carbon dioxide.
195		-	(j) "Pore space owner" means:
196		-	(1) a person;
197		-	(2) a trust;
198		-	(3) a corporation; or
199		-	(4) another entity;
200		-	that has title to, a right to, or an interest in pore space.
201		-	(k) "Reservoir" means a subsurface:
202		-	(1) sedimentary stratum;
203		-	(2) formation;
204		-	(3) aquifer;
205		-	(4) cavity; or
206		-	(5) void;
207		-	that is naturally or artificially created for the use of, or is capable of
208		-	SEA 457 6
209		-	being made suitable for, injecting and storing carbon dioxide.
210		-	(l) "Storage facility" means the subsurface area consisting of the
211		-	extent of a carbon dioxide plume which is required to be delineated on
212		-	an approved UIC Class VI permit or an amendment to a UIC Class VI
213		-	permit of a storage operator.
214		-	(m) "Storage operator" means:
215		-	(1) a person;
216		-	(2) a trust;
217		-	(3) a corporation; or
218		-	(4) another entity;
219		-	that operates a carbon sequestration project.
220		-	(n) "Surface or subsurface property interest owner" means a
221		-	property interest owner identified by the records of the recorder of
222		-	deeds for each county containing a portion of the proposed storage
223		-	facility who holds a fee simple interest or other freehold interest in the
224		-	surface or subsurface of the property, which may include mineral
225		-	rights. The term does not include the owner of a right-of-way, an
226		-	easement, or a leasehold.
227		-	(o) "UIC Class VI permit" means a permit issued under the federal
228		-	Safe Drinking Water Act's Underground Injection Control program that
229		-	allows:
230		-	(1) a person;
231		-	(2) a trust;
232		-	(3) a corporation; or
233		-	(4) another entity;
234		-	to construct or operate a carbon dioxide injection well.
235		-	(p) "Underground storage of carbon dioxide" means the injection
236		-	and storage of carbon dioxide into underground strata and formations
237		-	pursuant to at least one (1) UIC Class VI permit.
238		-	SECTION 5. IC 14-39-2-4, AS ADDED BY P.L.163-2022,
239		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
240		-	JULY 1, 2025]: Sec. 4. (a) If at least two (2) pore space owners own
241		-	pore space located within a proposed carbon dioxide storage area of a
242		-	storage facility, the owners may agree to integrate their interests to
243		-	develop the pore space as a proposed storage facility for the
244		-	underground storage of carbon dioxide.
245		-	(b) If all of the owners of the pore space under subsection (a) do not
246		-	agree to integrate their interests, the department may issue an order
247		-	requiring the owners to integrate their interests and to develop the pore
248		-	space as a proposed storage facility for the underground storage of
249		-	carbon dioxide to serve the public interest, prevent waste, protect
250		-	correlative rights, and facilitate the efficient and effective use of
251		-	SEA 457 7
252		-	natural resources subject to the findings under subsection (c).
253		-	(c) Before issuing an order under subsection (b), the department
254		-	must make the following findings:
255		-	(1) That a storage operator: has been issued:
256		-	(A) filed a complete UIC Class VI permit or an amended
257		-	complete UIC Class VI permit; and
258		-	(B) submitted all the necessary information to the United
259		-	States Environmental Protection Agency for the agency to
260		-	process the storage operator's permit application.
261		-	(2) That the storage operator has made a good faith effort to
262		-	obtain the consent of all pore space owners located within the
263		-	proposed storage facility.
264		-	(3) That the storage operator has obtained the consent of the
265		-	owners of the pore space underlying at least seventy percent
266		-	(70%) of the surface area above the proposed storage facility or
267		-	amended proposed storage facility.
268		-	(4) That all pore space owners who do not agree to integrate their
269		-	interests to develop the pore space as a proposed storage facility
270		-	for the underground storage of carbon dioxide are equitably
271		-	compensated.
272		-	(d) A right to pore space granted by this section does not confer a
273		-	right to enter upon, or otherwise use, the surface of the land which is
274		-	integrated under this section unless provided in an order requiring the
275		-	owners to integrate their interests and to develop the pore space as a
276		-	proposed storage facility for the underground storage of carbon
277		-	dioxide.
278		-	(e) An involuntary integration order issued by the department
279		-	is effective fifteen (15) days after the applicant is issued a UIC
280		-	Class VI permit.
281		-	SECTION 6. IC 14-39-2-5, AS ADDED BY P.L.163-2022,
282		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
283		-	JULY 1, 2025]: Sec. 5. (a) Carbon sequestration projects are authorized
284		-	in Indiana for the purposes of:
285		-	(1) injecting carbon dioxide into the pore space of an underground
286		-	storage facility through at least one (1) carbon dioxide injection
287		-	well pursuant to a UIC Class VI permit; and
288		-	(2) employing the underground storage of carbon dioxide.
289		-	(b) A storage operator may not operate a carbon sequestration
290		-	project in Indiana without:
291		-	(1) a UIC Class VI permit; and
292		-	(2) a valid permit issued by the department.
293		-	(c) If a carbon sequestration project is owned by an entity other than
294		-	SEA 457 8
295		-	the storage operator, the storage operator shall be responsible for
296		-	obtaining a permit for a carbon sequestration project under subsection
297		-	(b). A permit for a carbon sequestration project may be transferred or
298		-	assigned from one (1) storage operator to another storage operator.
299		-	(d) An individual may apply to the department for a permit for a
300		-	carbon sequestration project in a form and manner prescribed by the
301		-	department.
302		-	(e) An application under subsection (d) must include the following:
303		-	(1) A filing fee of one thousand dollars ($1,000). equal to the
304		-	product of:
305		-	(A) the given amount of metric tons of carbon dioxide
306		-	proposed to be injected into the storage facility during the
307		-	first ten (10) years of the carbon sequestration project;
308		-	multiplied by
309		-	(B) one cent ($0.01).
310		-	The filing fee amount determined under this subdivision shall
311		-	be collected by the department and deposited in the state
312		-	general fund.
313		-	(2) The signature of the applicant.
314		-	(3) A statement verifying that the information submitted is true,
315		-	accurate, and complete to the best of applicant's knowledge.
316		-	(4) Information illustrating that the applicant has the financial,
317		-	managerial, and technical ability to construct, operate, and
318		-	maintain a carbon sequestration project.
319		-	(5) Information illustrating that the applicant or the contractors or
320		-	subcontractors of the applicant have the requisite expertise in
321		-	constructing, operating, and maintaining a carbon sequestration
322		-	project.
323		-	(6) Documentation to the department describing the scope of the
324		-	proposed carbon sequestration project.
325		-	(7) A statement describing how the applicant will construct,
326		-	operate, and maintain the proposed carbon sequestration project
327		-	in accordance with applicable local, state, and federal law,
328		-	including federal and state safety regulations and rules governing
329		-	the construction, operation, and maintenance of the carbon
330		-	sequestration project, and related facilities and equipment, to
331		-	ensure the safety of the carbon sequestration project employees
332		-	and the public.
333		-	(8) A statement that the interests of a mineral lessee or mineral
334		-	owner will not be adversely affected. If a mineral owner or
335		-	mineral lessee is adversely affected, the adversely affected
336		-	mineral owner or mineral lessee and the applicant may enter into
337		-	SEA 457 9
338		-	an agreement under section 4 of this chapter.
339		-	(f) After the first ten (10) years of a carbon sequestration
340		-	project, if the carbon sequestration project injects more metric
341		-	tons of carbon dioxide into the storage facility than was proposed
342		-	under the original application under subsection (e), the storage
343		-	operator shall pay the filing fee under subsection (e) for the
344		-	additional metric tons of carbon dioxide injected into the storage
345		-	facility during the first ten (10) years of the carbon sequestration
346		-	project.
347		-	(g) A fee paid under this section is not refundable by the
348		-	department.
349		-	SECTION 7. IC 14-39-2-6, AS ADDED BY P.L.163-2022,
350		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
351		-	JULY 1, 2025]: Sec. 6. (a) The department shall review an application
352		-	submitted under section 5(d) of this chapter. If the department
353		-	determines that the application submitted under section 5(d) of this
354		-	chapter is complete, the department shall notify the applicant.
355		-	(b) The department shall return an application to the applicant if the
356		-	department determines that the application is incomplete, inaccurate,
357		-	or both.
358		-	(c) If the department returns an application to an applicant under
359		-	subsection (b), the department shall inform the applicant in writing that
360		-	the applicant may file a corrected application not more than sixty (60)
361		-	days after the receipt of the returned application.
362		-	(d) Upon receiving a corrected application under this section, the
363		-	department shall review the application.
364		-	(e) Upon receiving notification that the corrected an application is
365		-	complete, the applicant shall:
366		-	(1) not more than sixty (60) days after receiving the notice under
367		-	this subsection:
368		-	(A) place a copy of the corrected application in a public library
369		-	located in each county in which the carbon sequestration
370		-	project is proposed to be located for public inspection;
371		-	(B) publish notice under IC 5-3-1 in each county in which the
372		-	carbon sequestration project is proposed to be located of the
373		-	name and address of each library in which a copy of the
374		-	corrected application is placed as required by clause (A); and
375		-	(C) provide notice to potentially affected parties pursuant to
376		-	312 IAC 29-5-2; under rules adopted by the commission for
377		-	carbon sequestration projects; and
378		-	(2) provide to the department proof of publication of notice under
379		-	this subsection not more than thirty (30) days after the publication
380		-	SEA 457 10
381		-	or delivery of the notice.
382		-	(f) Not later than ninety (90) days after receiving the proof of
383		-	publication of notice under subsection (e), the department shall notify
384		-	the applicant in writing that:
385		-	(1) the department has approved the application; or
386		-	(2) the department has denied the application.
387		-	SECTION 8. IC 14-39-2-9, AS ADDED BY P.L.163-2022,
388		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
389		-	JULY 1, 2025]: Sec. 9. (a) A storage operator shall pay the department
390		-	a fee under subsections (b) and (c) for every metric ton of carbon
391		-	dioxide injected for storage.
392		-	(b) The storage operator shall provide the department with an
393		-	estimate of the amount of carbon dioxide to be injected into a storage
394		-	facility for the period of the permit at the time of application for a
395		-	carbon sequestration project permit.
396		-	(c) (b) Not later than sixty (60) days after the end of a calendar
397		-	year, a storage operator shall pay annually to the department a fee of
398		-	eight cents ($0.08) per metric ton of carbon dioxide estimated to be
399		-	injected into a the storage facility for the previous calendar year.
400		-	The department shall deposit the fee into the state general fund.
401		-	(d) A storage operator shall reconcile the previous calendar year's
402		-	payment with the volume of carbon dioxide actually injected into the
403		-	storage facility the previous calendar year. The storage operator shall
404		-	submit payment for the amount of carbon dioxide injected into a
405		-	storage facility less the amount paid the previous calendar year.
406		-	(e) The department shall refund a storage operator any overpayment
407		-	in the current year from the previous calendar year.
408		-	(c) Not later than sixty (60) days after the end of the calendar
409		-	year in which a storage operator begins injecting carbon dioxide
410		-	into a storage facility, the storage operator shall pay to the
411		-	department a one (1) time fee for the carbon dioxide injected into
412		-	the storage facility equal to the product of:
413		-	(1) the given amount of metric tons of carbon dioxide
414		-	proposed to be injected into the storage facility during the
415		-	first ten (10) years of the carbon sequestration project;
416		-	multiplied by
417		-	(2) five cents ($0.05).
418		-	The department shall deposit the fee into the state general fund.
419		-	SECTION 9. IC 14-39-2-10, AS ADDED BY P.L.163-2022,
	848	+	transmission pipeline certificate of authority.".
	849	+	Page 5, between lines 32 and 33, begin a new line block indented
	850	+	and insert:
	851	+	"The filing fee amount determined under this subdivision shall
	852	+	be collected by the department and deposited in the carbon
	853	+	ES 457—LS 7454/DI 150 20
	854	+	sequestration project program administrative fund
	855	+	established by section 10.5 of this chapter.".
	856	+	Page 14, between lines 39 and 40, begin a new paragraph and insert:
	857	+	"(f) The department shall deposit civil penalties collected under
	858	+	this chapter in the carbon dioxide storage facility trust fund
	859	+	established by section 10 of this chapter.".
	860	+	Renumber all SECTIONS consecutively.
	861	+	and when so amended that said bill do pass and be reassigned to the
	862	+	Senate Committee on Appropriations.
	863	+	(Reference is to SB 457 as introduced.)
	864	+	GLICK, Chairperson
	865	+	Committee Vote: Yeas 8, Nays 1.
	866	+	_____
	867	+	COMMITTEE REPORT
	868	+	Mr. President: The Senate Committee on Appropriations, to which
	869	+	was referred Senate Bill No. 457, has had the same under consideration
	870	+	and begs leave to report the same back to the Senate with the
	871	+	recommendation that said bill be AMENDED as follows:
	872	+	Delete the title and insert the following:
	873	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	874	+	natural and cultural resources.
	875	+	Page 4, line 38, delete "carbon sequestration project program".
	876	+	Page 4, line 39, delete "administrative".
	877	+	Page 4, line 39, strike "fund established by".
	878	+	Page 4, line 39, delete "IC 14-39-2-10.5." and insert "state general
	879	+	fund.".
	880	+	Page 8, line 22, delete "carbon" and insert "state general fund.".
	881	+	Page 8, delete lines 23 through 24.
	882	+	Page 10, line 26, delete "carbon dioxide" and insert "state general
	883	+	fund.".
	884	+	Page 10, delete line 27.
	885	+	Page 11, line 3, delete "carbon sequestration" and insert "state
	886	+	general fund.".
	887	+	Page 11, delete lines 4 through 42, begin a new paragraph and
	888	+	insert:
	889	+	"SECTION 9. IC 14-39-2-10, AS ADDED BY P.L.163-2022,
	890	+	ES 457—LS 7454/DI 150 21
420	891		SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
421	892		JUNE 29, 2025]: Sec. 10. (a) The carbon dioxide storage facility trust
422	893		fund is established.
423		-	SEA 457 11
424	894		(b) The fee collected under section 9 of this chapter must be
425	895		deposited in the carbon dioxide storage facility trust fund established
426	896		by subsection (a).
427	897		(c) The carbon dioxide storage facility trust fund must be
428	898		maintained as a special fund and all money in the fund is appropriated
429	899		and may be used only to defray the costs incurred by the department for
430	900		the long term monitoring and management of a carbon sequestration
431	901		project.
432	902		(d) On June 30, 2025, the budget agency shall transfer all money
433	903		in the fund to the state general fund.
434		-	(e) This section expires July 1, 2025.
435		-	SECTION 10. IC 14-39-2-11, AS ADDED BY P.L.163-2022,
436		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
437		-	JULY 1, 2025]: Sec. 11. (a) A mineral owner or mineral lessee shall
438		-	provide written notice to a storage operator at least thirty-one (31) days
439		-	prior to drilling a well if the mineral owner or mineral lessee wishes to
440		-	drill a well not more than:
441		-	(1) three hundred thirty (330) feet from the surface location of a
442		-	well pursuant to a UIC Class VI permit; or
443		-	(2) five hundred (500) feet from the uppermost confining zone of
444		-	a carbon sequestration facility within the boundary of the
445		-	storage facility pursuant to a UIC Class VI permit.
446		-	Drilling permitted by this subsection must be conducted in cooperation
447		-	with a storage operator.
448		-	(b) A well drilled under subsection (a) must be drilled in
449		-	compliance with the requirements of:
450		-	(1) the department to preserve the integrity of the storage facility;
451		-	(2) a UIC Class VI permit; and
452		-	(3) any other applicable regulations.
453		-	SECTION 11. IC 14-39-2-11.5 IS ADDED TO THE INDIANA
454		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
455		-	[EFFECTIVE JULY 1, 2025]: Sec. 11.5. (a) The department shall
456		-	issue a permit for a person to:
457		-	(1) drill, deepen, or operate a nonproduction well drilled to
458		-	investigate and obtain data on geological, structural, or
459		-	hydrogeological stratigraphic intervals for the suitability of
460		-	underground formations for carbon sequestration; or
461		-	(2) convert a well for oil and gas purposes (as defined by
462		-	IC 14-8-2-317) for carbon dioxide investigations.
463		-	(b) A person issued a permit under subsection (a) shall:
464		-	(1) comply with the conditions of a permit as determined by
465		-	the department;
466		-	SEA 457 12
467		-	(2) correct adverse environmental impact that results from
468		-	noncompliance with a permit; and
469		-	(3) provide proper operation and maintenance for facilities,
470		-	systems of treatment, and control and related appurtenances
471		-	that are installed or used by the person to comply with the
472		-	permit conditions.
473		-	(c) A permit issued under this section does not convey to the
474		-	holder a property right or an exclusive privilege.
475		-	(d) An application for a permit under subsection (a) must
476		-	include the following:
477		-	(1) The name, address, telephone number, and electronic mail
478		-	address of the applicant.
479		-	(2) The signature of the applicant, or the applicant's designee,
480		-	that is the operator named in the permit application.
481		-	(3) The plat of land or lease where the well is to be located
482		-	with the property boundaries, lease lines, storage area tract
483		-	boundary, and acreage within the tract.
484		-	(4) The location of the proposed well as certified by a
485		-	professional surveyor registered under IC 25-21.5.
486		-	(5) The surface elevation of the proposed well and the method
487		-	used for determining that elevation.
488		-	(6) The depth of the proposed well.
489		-	(7) Proof the applicant executed a surface use agreement with
490		-	the surface owner and an agreement demonstrating the
491		-	applicant is not trespassing on the subsurface estate, if
492		-	different from the surface estate.
493		-	(8) Any other information required by the department that is
494		-	necessary to administer this section.
495		-	(e) An applicant shall submit the following with an application
496		-	for a permit under this section:
497		-	(1) A cash bond for each well of ten dollars ($10) for each foot
498		-	of well depth.
499		-	(2) A permit fee of two hundred fifty dollars ($250) payable to
500		-	the department.
501		-	An amount collected under this subsection must be deposited in the
502		-	state general fund.
503		-	(f) The department shall incorporate in the permit the terms,
504		-	conditions, and covenants the department considers necessary to
505		-	protect the public interest.
506		-	(g) Except as provided in subsection (h), the department shall
507		-	issue a permit under this section not later than fifteen (15) days
508		-	after the applicant:
509		-	SEA 457 13
510		-	(1) complies with this article and rules adopted under this
511		-	article; and
512		-	(2) submits a complete permit application to the department;
513		-	unless the fifteen (15) day deadline is otherwise waived by the
514		-	applicant.
515		-	(h) The department may deny a permit under this section if the
516		-	applicant, or an officer, a partner, or a director of the applicant:
517		-	(1) is in violation of this article or would be in violation if the
518		-	permit were issued; or
519		-	(2) has demonstrated a pattern of willful violations of this
520		-	article;
521		-	indicating an intention not to comply with this article.
522		-	(i) A permit issued by the department under this section is
523		-	effective until:
524		-	(1) the well is plugged and abandoned;
525		-	(2) the well is converted to another type of well; or
526		-	(3) the permit is revoked.
527		-	(j) A permit issued by the department under this section expires
528		-	one (1) year after the date of issuance if drilling the well has not
529		-	commenced.
530		-	(k) The department may revoke a permit issued under this
531		-	section.
532		-	(l) A person holding a permit under this section shall plug and
533		-	abandon a well that is no longer in operation under a permit,
534		-	unless the well is converted to a carbon dioxide injection well or
535		-	monitoring well under a UIC Class Vl permit.
536		-	(m) A person may defer plugging and abandoning a well under
537		-	this section while an application is pending to convert the well into
538		-	a UIC Class VI permit carbon dioxide injection well or monitoring
539		-	well under this section, provided that the well is temporarily
540		-	capped and maintained in the manner prescribed by the
541		-	department under the permit.
542		-	(n) After a well is plugged and abandoned or transferred, the
543		-	applicant who paid the cash bond under subsection (e) may apply
544		-	for a request a total or partial bond release from the department.
545		-	The director of the division of reclamation shall:
546		-	(1) release the bond as requested; or
547		-	(2) deny the bond release.
548		-	(o) A determination under this section is subject to review and
549		-	appeal under IC 4-21.5.
550		-	(p) The commission may adopt rules under IC 4-22-2 to
551		-	implement this section.
552		-	SEA 457 14
553		-	SECTION 12. IC 14-39-2-13, AS ADDED BY P.L.163-2022,
554		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
555		-	JULY 1, 2025]: Sec. 13. (a) A certificate of project completion shall be
556		-	issued upon the application from the storage operator if the department
557		-	finds that the storage operator does the following:
558		-	(1) The storage operator is in compliance with all applicable laws
559		-	governing the storage facility.
560		-	(2) The storage operator shows that the storage facility is
561		-	reasonably expected to retain the carbon dioxide stored therein.
562		-	(3) The storage operator shows that the carbon dioxide in the
563		-	storage facility is stable by showing that either:
564		-	(A) the stored carbon dioxide is essentially stationary; or
565		-	(B) if the stored carbon migrates, migration will be unlikely to
566		-	cross the boundaries of the storage facility.
567		-	(4) The storage operator shows that all wells, equipment, and
568		-	facilities used after the closure period are in good condition and
569		-	retain mechanical integrity.
570		-	(5) The storage operator shows that injection wells have been
571		-	plugged.
572		-	(6) The storage operator shows that equipment and facilities, not
573		-	including fixed structures and long term monitoring equipment
574		-	and wells, have been removed.
575		-	(7) The storage operator proves that the reclamation work
576		-	required by the department where the project ceases to inject
577		-	carbon dioxide is completed.
578		-	(8) The following with respect to site closure:
579		-	(A) The storage operator has provided a notice of intent for
580		-	site closure to the United States Environmental Protection
581		-	Agency.
582		-	(B) The United States Environmental Protection Agency has
583		-	authorized site closure.
584		-	(C) The storage operator has provided to the United States
585		-	Environmental Protection Agency:
586		-	(i) the site closure report required under 40 CFR 146.93(f)
587		-	(as in effect January 1, 2022); or
588		-	(ii) a comparable report to the state regulatory body if the
589		-	state assumes primacy for UIC Class VI permitting.
590		-	(b) The department shall issue a certificate of project completion not
591		-	later than one hundred eighty (180) days after receiving an application
592		-	from the storage operator. If the department determines that the
593		-	application for a certificate of project completion is incomplete,
594		-	inaccurate, or both, the department shall return the application to the
595		-	SEA 457 15
596		-	storage operator.
597		-	(c) If the department returns the application to the storage operator
598		-	under subsection (b), the department shall inform the storage operator,
599		-	in writing, of the deficiencies of the submitted application and inform
600		-	the storage operator of the right to file a corrected application with the
601		-	department.
602		-	(d) Once a certificate of completion is issued, the following occurs:
603		-	(1) Except as provided in subsection (e), the state will assume
604		-	ownership of and responsibility for the storage facility.
605		-	(2) The state will assume responsibility for all regulatory
606		-	requirements associated with the storage facility, and the storage
607		-	operator and the owner of the storage facility are released from
608		-	responsibility for all regulatory requirements associated with the
609		-	storage facility.
610		-	(3) The state will assume any potential liability associated with
611		-	the storage facility.
612		-	(4) The department may, at a reasonable time, enter property
613		-	where a carbon dioxide injection well or monitoring well for
614		-	the storage facility is located to inspect and maintain the
615		-	carbon dioxide injection well or storage facility. Except in the
616		-	event of an emergency, the department shall provide notice to
617		-	the surface owner of the date the department intends to enter
618		-	the property at least five (5) business days before the
619		-	department intends to enter the property. The notice must be
620		-	issued by:
621		-	(A) United States mail;
622		-	(B) private courier;
623		-	(C) personal delivery; or
624		-	(D) any other manner agreed to in writing between the
625		-	department and the surface owner.
626		-	(e) The state may only:
627		-	(1) assume ownership of and responsibility for; or
628		-	(2) accept transfer of;
629		-	a storage facility for which interest in or rights to property are
630		-	conveyed by lease agreement if the lessor and lessee agree to
631		-	transfer the storage facility in the lease agreement to the state. The
632		-	state only assumes ownership of and responsibility for the storage
633		-	facility and does not assume ownership of or responsibility for any
634		-	other provisions of the agreement.
635		-	(e) (f) Unless there is documentation to the contrary, the storage
636		-	operator has title to the carbon dioxide injected into and stored in a
637		-	storage facility, and the storage operator holds title until the department
638		-	SEA 457 16
639		-	issues a certificate of completion.
640		-	SECTION 13. IC 14-39-2-15 IS ADDED TO THE INDIANA
641		-	CODE AS A NEW SECTION TO READ AS FOLLOWS
642		-	[EFFECTIVE JULY 1, 2025]: Sec. 15. (a) A violation of a
643		-	requirement under this article is subject to a civil penalty under
644		-	this section.
645		-	(b) Except as provided in subsection (d), a civil penalty for a
646		-	violation under this article is as follows:
647		-	(1) One thousand dollars ($1,000) for a first violation.
648		-	(2) Five thousand dollars ($5,000) for a second violation.
649		-	(3) Ten thousand dollars ($10,000) for a third and each
650		-	subsequent violation.
651		-	(c) If a person issued a civil penalty under subsection (b) for a
652		-	violation of a requirement under this article does not remediate the
653		-	violation in the time prescribed by the department, the person is
654		-	subject to a cessation order issued by the department. The civil
655		-	penalty for a cessation order is seven hundred fifty dollars ($750)
656		-	each day for not more than thirty (30) days.
657		-	(d) A person who does not obtain the proper certificates or
658		-	permits from the department under this article:
659		-	(1) is subject to a civil penalty of ten thousand dollars
660		-	($10,000); and
661		-	(2) shall be issued a cessation order by the department in the
662		-	amount of seven hundred fifty dollars ($750) each day for not
663		-	more than thirty (30) days.
664		-	(e) A civil penalty assessed under this section is subject to review
665		-	and appeal under IC 4-21.5.
666		-	(f) The department shall deposit civil penalties collected under
667		-	this chapter in the state general fund.
668		-	SECTION 14. An emergency is declared for this act.
669		-	SEA 457 President of the Senate
670		-	President Pro Tempore
671		-	Speaker of the House of Representatives
672		-	Governor of the State of Indiana
673		-	Date: Time:
674		-	SEA 457
	904	+	(e) This section expires July 1, 2025.".
	905	+	Page 12, delete lines 1 through 14.
	906	+	Page 13, line 38, delete "in the" and insert "in the state general
	907	+	fund.".
	908	+	Page 13, delete lines 39 through 40.
	909	+	Page 17, line 33, delete "carbon dioxide storage facility trust fund"
	910	+	and insert "state general fund.".
	911	+	Page 17, delete lines 34 through 42, begin a new paragraph and
	912	+	insert:
	913	+	"SECTION 15. An emergency is declared for this act.".
	914	+	Delete page 18.
	915	+	Renumber all SECTIONS consecutively.
	916	+	and when so amended that said bill do pass.
	917	+	(Reference is to SB 457 as printed January 29, 2025.)
	918	+	MISHLER, Chairperson
	919	+	Committee Vote: Yeas 11, Nays 2.
	920	+	_____
	921	+	SENATE MOTION
	922	+	Mr. President: I move that Senate Bill 457 be amended to read as
	923	+	follows:
	924	+	Page 2, line 1, after "applicant" insert ", or the contractor or
	925	+	subcontractor of the applicant,".
	926	+	ES 457—LS 7454/DI 150 22
	927	+	(Reference is to SB 457 as printed February 7, 2025.)
	928	+	GLICK
	929	+	_____
	930	+	COMMITTEE REPORT
	931	+	Mr. Speaker: Your Committee on Utilities, Energy and
	932	+	Telecommunications, to which was referred Senate Bill 457, has had
	933	+	the same under consideration and begs leave to report the same back
	934	+	to the House with the recommendation that said bill do pass.
	935	+	(Reference is to SB 457 as reprinted February 11, 2025.)
	936	+	SOLIDAY
	937	+	Committee Vote: Yeas 11, Nays 2
	938	+	ES 457—LS 7454/DI 150