All Roll Calls
Yes: 254 • No: 167
IndianaHB 1368Second Regular Session 124th General Assembly (2026)HouseWALLET
Carbon.
Sponsored By: Edmond Soliday (Republican)
Became Law
utilitiesthe senate
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 3 benefits, 5 costs, 9 mixed.
Higher penalties for carbon storage violations
Beginning July 1, 2026, civil penalties are $2,500 per day for a first violation, $5,000 per day for a second, and $10,000 per day for a third or later. If you fail to get a required certificate or permit, you must pay a $10,000 civil penalty and the department issues a cessation order. If you do not fix a violation after a civil penalty, a cessation order can add $750 per day for up to 30 days.
Bonds and fees for test CO2 wells
You must get a permit to drill, deepen, operate, or convert a well for CO2 investigations. You must post a cash bond of $10 per foot of well depth for each well and pay a $250 permit fee per application. The department issues permits within 15 days after a complete application unless you waive that deadline. A permit expires after one year if drilling has not started, and plugging and bond release rules apply.
Long-term monitoring and closure duties
After injection stops, the operator must track the CO2 plume and pressure to show drinking water is safe. Monitoring lasts at least 50 years unless the department approves a different time, and care must continue if safety is not shown. The operator must give 120 days’ written notice before closure and submit any revised closure plan, and must prove no more monitoring is needed to protect water. After closure is authorized, all monitoring wells must be plugged. A site‑closure report is due not more than 90 days before closure; the department keeps it for 10 years. Operators must keep post‑injection records for 10 years after closure and then give them to the department. The permit remains in force through the post‑injection care period.
CO2 storage integration and lease protections
When pore‑space owners cannot agree, the department can order involuntary integration if owners of at least 70% of the surface area consent, the operator tried in good faith to get consent, and nonconsenting owners get fair pay. The order takes effect 15 days after a UIC Class VI permit and does not transfer title or grant surface entry unless the order says so. If a storage facility is under a lease, the State accepts it only if the lease allows it, and then the State assumes only the storage facility, not other lease rights or liabilities.
Enforcement, penalties, and appeals
Beginning July 1, 2026, knowing and intentional violations are a Class A misdemeanor with at least $5,000 per day assessed for each violation. The law adds more acts as violations, including reporting errors, failing basic operations or maintenance, and creating hazardous conditions. The department may reduce civil penalties when mitigating factors apply. Beginning July 1, 2026, the public can take part in enforcement matters, and civil penalties and cessation orders can be appealed under IC 4‑21.5. The department deposits civil penalties into the carbon dioxide storage facility trust fund.
Stronger safety rules for wells and drilling
Operators must build and test injection wells so fluids cannot reach drinking water. They must use strong, compatible materials, run logs and tests, provide baseline reports, and monitor the annulus. Injection pressure must stay below 90% of fracture pressure unless an approved stimulation is in the permit. An operator may seek a depth waiver, but the department must publish notice and get written IDEM and EPA concurrence; waiver details are posted within 30 days. Mineral owners planning to drill within 330 feet of a Class VI well’s surface site or within 500 feet of the upper confining zone must give 31 days’ written notice and coordinate with the operator.
Stronger drinking water safeguards for CO2 storage
The department must protect underground drinking water and aquifers. It bans injection without a Class VI permit, moving fluids into drinking water, and actions that endanger drinking water. It bars new aquifer exemptions for Class VI wells, except EPA‑approved expansions that meet 40 CFR 144.7. If injecting into an oil or gas reservoir raises risk to drinking water, the department requires a Class VI permit based on factors like pressure, injection and production rates, distance to drinking water, well integrity, CO2 source, and recovery plans.
Permits and public input for carbon storage
The law makes carbon storage illegal without a state permit and a federal Class VI well. After a complete application, the department gives a decision schedule within seven days, and it cannot deny a permit without a public comment period and a hearing. The department must hold a public hearing, publish notice for two weeks in each affected county, and mail notice to owners within one‑half mile; applicants pay these costs. The public gets at least 30 days to comment, at least 30 days’ notice before hearings, and the department must post status and answer comments. Before any permit issues, the department consults the environmental agency and must find CO2 will be retained, water and minerals are protected, at least 70% of surface area has consent, and nonconsenting owners get equitable pay. Approved permits are recorded with county recorders; anyone may request changes, and the department can modify, reissue, or revoke permits for cause. You can also ask for an optional informal hearing before a formal appeal.
Project completion and who holds liability
The department issues a project completion certificate only after key steps, such as plugging injection wells, showing CO2 is stable, removing nonessential equipment, and sending EPA the required notices and reports. The department must decide within 180 days or return the application with written reasons. After the certificate, the State takes ownership and responsibility for the storage facility and related liability. The department may enter the property to inspect or maintain the site with at least five business days’ notice, except in emergencies. The operator owns the injected CO2 until the certificate issues. The operator must record a permanent deed notice listing the storage use, injection volume, zones, dates, and agency and EPA contacts.
Definitions and federal coordination for program
Beginning January 1, 2025, the law defines key terms like carbon dioxide, injection well, pore space, storage operator, Class VI permit, and area of review across the program. The department must send a memorandum of agreement with required details to EPA’s Regional Administrator to coordinate the state’s Class VI program.
State can set carbon dioxide pipeline setbacks
The department can set where carbon dioxide pipelines may run and how far they must be from other features. These siting and setback rules guide safer routing.
Utility payment rules for state properties
Beginning July 1, 2026, utilities must accept ACH, wire, and card payments from the Department of Natural Resources for department‑owned properties. Card payments are allowed only up to $10,000, and utilities may not set lower limits for EFT or card payments. Utilities must allow at least five payment transactions per invoice and provide consolidated bills on request.
More reporting and monitoring for operators
Storage operators must send the reports required by 40 CFR 146.91 to the department on the federal schedule. The department can, by written notice for each well, require records, reports, and monitoring to check compliance.
Filing fee for storage permits
Applicants pay a one‑time filing fee of $0.01 for each metric ton of CO2 planned for injection during the first 10 years. The department deposits the fee into the carbon sequestration program administrative fund.
Longer permit reviews and transfer checks
The department has up to 180 days, instead of 90, to approve or deny a permit after it gets proof of the required public notice. A Class VI permit holder cannot transfer a permit without telling the department; the department may modify or reissue the permit after notice. While a Class VI permit is active, following its terms counts as complying with state law for enforcement.
Pilot carbon project in West Terre Haute
The law authorizes a pilot tied to the proposed West Terre Haute ammonia plant. It allows up to two CO2 pipelines inside Vigo and Vermillion counties and one or more EPA‑permitted Class VI wells. The director must name an operator within 30 days after EPA issues the permit. If no EPA Class VI permit is issued by July 1, 2028, the authorization expires.
State rules to run CO2 storage program
Beginning January 1, 2025, the Natural Resources Commission adopts rules to run the CO2 storage program and to seek U.S. EPA primacy for Class VI wells. Any fees in these rules, and any later fee increases, must be reviewed by the budget committee before they take effect. The chapter governs underground CO2 storage to obtain primacy and must not harm existing oil, gas, or coal rights except when strictly needed to build and run a storage project.
Sponsors & Cosponsors
Sponsor
Edmond Soliday
Republican • House
Cosponsors
David Niezgodski
Democratic • Senate
Eric Koch
Republican • Senate
Roll Call Votes
House vote • 2/27/2026
Roll Call 419 on HB1368.04.ENGS
Yes: 63 • No: 29 • Other: 5
House vote • 2/27/2026
Roll Call 420 on HB1368.04.ENGS.CON01
Yes: 57 • No: 40
House vote • 2/26/2026
Roll Call 399 on HB1368.04.ENGS.CON01
Yes: 48 • No: 42 • Other: 1
Senate vote • 2/24/2026
Roll Call 259 on HB1368.04.ENGS
Yes: 29 • No: 19
House vote • 1/28/2026
Roll Call 114 on HB1368.02.COMH
Yes: 57 • No: 37 • Other: 3
Actions Timeline
Public Law 161
3/12/2026HouseSigned by the Governor
3/12/2026HouseSigned by the President Pro Tempore
3/5/2026SenateSigned by the President of the Senate
3/2/2026SenateRules Suspended. Committee report, adopted; Roll Call 419: yeas 63, nays 29
2/27/2026HouseSigned by the Speaker
2/27/2026HouseHouse concurred with Senate amendments; Roll Call 420: yeas 57, nays 40
2/27/2026HouseMotion to concur filed
2/26/2026HouseMotion to concur filed
2/26/2026HouseConcurrence defeated; Roll Call 399: yeas 48, nays 42
2/26/2026HouseReturned to the House with amendments
2/25/2026SenateThird reading: passed; Roll Call 259: yeas 29, nays 19
2/24/2026SenateSenator Niezgodski added as cosponsor
2/16/2026SenateSecond reading: amended, ordered engrossed
2/10/2026SenateAmendment #2 (Koch) prevailed; voice vote
2/10/2026SenateAmendment #1 (Koch) prevailed; voice vote
2/10/2026SenateCommittee report: amend do pass, adopted
2/5/2026SenateFirst reading: referred to Committee on Utilities
2/2/2026SenateReferred to the Senate
1/29/2026HouseThird reading: passed; Roll Call 114: yeas 57, nays 37
1/28/2026HouseSenate sponsor: Senator Koch
1/28/2026HouseSecond reading: ordered engrossed
1/22/2026HouseCommittee report: amend do pass, adopted
1/20/2026HouseAuthored by Representative Soliday
1/8/2026HouseFirst reading: referred to Committee on Utilities, Energy and Telecommunications
1/8/2026House
Bill Text
Engrossed House Bill (H)
Enrolled House Bill (H)
House Bill (S)
Introduced House Bill (H)