IndianaSB 457First Regular Session 124th General Assembly (2025)Senate

Carbon dioxide sequestration.

Sponsored By: Susan Glick (Republican)

Signed by Governor

Summary

Requires an applicant for a carbon dioxide transmission pipeline certificate to comply with certain guidelines adopted by the Indiana utility regulatory commission. Exempts a carbon dioxide transmission pipeline company (company) from obtaining a certificate of authority if the company's carbon dioxide transmission pipeline project meets certain criteria. Requires an applicant or the contractor or subcontractor of the applicant to submit evidence that the contractor or subcontractor of the applicant have the requisite experience constructing, operating, and maintaining a transmission pipeline for the department to grant the applicant a carbon dioxide transmission pipeline certificate of authority. Moves fee revenue collected for a carbon dioxide transmission pipeline certificate of authority from the oil and gas environmental fund to the state general fund. Provides that the filing fee for a permit for a carbon sequestration project is deposited in the state general fund. Provides that an involuntary integration order issued by the department of natural resources (department) is effective 15 days after the petitioner is issued a UIC Class VI permit. Amends the definition of "UIC Class VI permit". Adjusts the filing fee for a carbon sequestration project permit. Requires a storage operator to pay the department a fee of $0.08 per metric ton of carbon dioxide injected into a storage facility for the previous calendar year. Provides that a storage operator shall pay to the department a fee for the carbon dioxide injected into the storage facility. Expires the carbon dioxide storage facility trust fund and provides for the transfer of money in that fund to the state general fund. Directs the department to establish and issue a permit that allows a person to: (1) drill or operate a carbon dioxide investigatory well; or (2) convert an oil and gas well for use in carbon dioxide investigations. Describes circumstances in which the department may enter property to inspect and maintain a well or storage facility. Establishes civil penalties for violations of the statutes regulating carbon sequestration. Provides that civil penalties are deposited in the state general fund.

natural resourcesappropriationsthe houseutilities

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 0 benefits, 3 costs, 6 mixed.

Landowners face earlier carbon storage orders

Beginning July 1, 2025, Indiana can order underground storage rights combined before the federal injection permit is issued. Operators must first submit a complete permit application and required information, and make good-faith efforts to obtain every owner’s consent. Consenting owners must represent at least 70% of the surface area above the proposed facility; nonconsenting owners must receive fair compensation. Orders must serve the public interest, prevent waste, protect owners’ shared rights, and support efficient resource use. An order takes effect 15 days after the injection permit is issued and does not automatically grant surface-entry rights.

Carbon storage violators face escalating fines

Beginning July 1, 2025, carbon storage violations carry fines of $1,000 for a first violation and $5,000 for a second. Each third or later violation carries a $10,000 fine. Failure to fix a violation by the state’s deadline can trigger a stop order and $750 daily penalties for up to 30 days. Operating without a required certificate or permit carries $10,000 plus a stop order with the same daily penalty. Penalties go to the general fund and can be reviewed and appealed through Indiana’s administrative process.

Carbon storage operators pay volume-based fees

Beginning July 1, 2025, storage fees go to Indiana’s general fund, and Class VI permits cover injection-well construction or operation. The nonrefundable project application fee replaces $1,000 with $0.01 per metric ton planned for injection during the first 10 years. After those 10 years, operators pay another $0.01 per metric ton injected during that period above the original plan. Operators also pay $0.08 per metric ton injected each calendar year, due within 60 days after year-end. A separate one-time fee of $0.05 per metric ton planned for the first 10 years is due within 60 days after the year injection begins ends.

Indiana ends dedicated carbon storage fund

The law directs Indiana to move the carbon dioxide storage facility trust fund’s remaining money to the general fund on June 30, 2025. The dedicated trust fund ends July 1, 2025. The law does not state how much money is transferred.

Landowners get notice and drilling duties

Beginning July 1, 2025, Indiana can enter property at reasonable times to inspect or maintain carbon injection wells or storage facilities. Surface owners must receive at least five business days’ notice, except in emergencies. Mineral owners and lessees must give storage operators written notice at least 31 days before nearby drilling. Within facility boundaries, this covers drilling within 330 feet of a permitted well’s surface location or 500 feet of the uppermost confining zone—the layer sealing stored carbon underground. Drilling in those areas must be done in cooperation with the storage operator.

Carbon study wells get permit process

Indiana’s natural resources department must permit qualifying carbon storage investigation wells, including eligible oil and gas well conversions. Applicants must provide well details, proof of a surface-use agreement, and a $250 fee deposited in the general fund. The department generally has 15 days to issue a permit unless the applicant waives that deadline; specified violations can justify denial. Permit holders must follow permit conditions, maintain facilities, and address environmental harm caused by noncompliance. A permit expires if drilling has not begun within one year.

Pipeline companies gain exemptions, face safety duties

Beginning July 1, 2025, pipeline applicants can use contractors’ or subcontractors’ qualifications and experience to meet certificate requirements. Applicants must sign a commitment to follow state pipeline-safety guidelines; an agricultural-impact agreement no longer serves as an alternative. A certificate exemption covers storage-serving lines that begin and end above the facility without crossing public property, public rights-of-way, or parcels with existing or required easements. The law also exempts storage-serving lines whose surface route crosses parcels with existing or required private easements or private rights-of-way.

Study well operators post closure bonds

Investigation-well applicants must post a cash bond of $10 per foot of depth for each well. The payer can request full or partial bond release after the well is plugged and abandoned or transferred. Permit holders must plug and abandon wells no longer operating under a permit. That requirement does not apply to wells converted into injection or monitoring wells under a Class VI permit. While a conversion application is pending, closure can be delayed only if the well is temporarily capped and maintained as required.

Storage transfers require lease owner agreement

Beginning July 1, 2025, state takeover of a leased storage facility requires the lessor and lessee’s agreement in the lease. Transfer follows a project-completion certificate, which the state must issue within 180 days of a complete application when closure requirements are met. Those requirements include stable stored carbon, well integrity, plugged injection wells, equipment removal, reclamation, and required federal closure reporting. The state takes ownership and regulatory responsibility for the facility, releasing the operator and facility owner from further facility regulatory duties. The state does not take on the lease’s other terms.

Sponsors & Cosponsors

Sponsor

  • Susan Glick

    Republican • Senate

Cosponsors

  • Edmond Soliday

    Republican • House

  • Eric Koch

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 83 • No: 57

House vote • 3/20/2025

Third reading: passed

Yes: 56 • No: 36

Senate vote • 2/11/2025

Third reading: passed

Yes: 27 • No: 21

Actions Timeline

  1. Signed by the Governor

    4/3/2025Senate
  2. Public Law 25

    4/3/2025Senate
  3. Signed by the President of the Senate

    3/27/2025Senate
  4. Signed by the President Pro Tempore

    3/24/2025Senate
  5. Signed by the Speaker

    3/24/2025House
  6. Returned to the Senate without amendments

    3/21/2025House
  7. Third reading: passed; Roll Call 293: yeas 56, nays 36

    3/20/2025House
  8. Second reading: ordered engrossed

    3/17/2025House
  9. Committee report: do pass, adopted

    3/13/2025House
  10. First reading: referred to Committee on Utilities, Energy and Telecommunications

    3/3/2025House
  11. Referred to the House

    2/12/2025Senate
  12. Senator Koch added as second author

    2/11/2025Senate
  13. House sponsor: Representative Soliday

    2/11/2025Senate
  14. Third reading: passed; Roll Call 110: yeas 27, nays 21

    2/11/2025Senate
  15. Amendment #1 (Glick) prevailed; voice vote

    2/10/2025Senate
  16. Second reading: amended, ordered engrossed

    2/10/2025Senate
  17. Committee report: amend do pass, adopted

    2/6/2025Senate
  18. Committee report: amend do pass adopted; reassigned to Committee on Appropriations

    1/28/2025Senate
  19. First reading: referred to Committee on Natural Resources

    1/13/2025Senate
  20. Authored by Senator Glick

    1/13/2025Senate

Bill Text

  • Engrossed Senate Bill (H)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (S)

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