HB 1368

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1368
   AN ACT to amend the Indiana Code concerning natural and cultural
resources.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 8-1-2-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 3.5. (a) As used in this section, "department" refers
to the department of natural resources created by IC 14-9-1-1.
   (b) As used in this section, "utility" means a person, however
organized, that provides utility service to customers in Indiana.
The term includes an agent acting on behalf of the person to accept
and process payments from customers.
   (c) As used in this section, "utility service" means:
     (1) electric;
     (2) natural gas;
     (3) water; or
     (4) wastewater;
service that is provided at retail.
   (d) A utility shall accept the following methods of payment from
the department for utility service provided to a property owned by
the department:
     (1) An electronic funds transfer, including by wire or
     Automated Clearing House (ACH).
     (2) A payment by credit card or debit card, if the payment
     amount does not exceed ten thousand dollars ($10,000).
HEA 1368 — Concur
                                  2
   (e) A utility may not limit or restrict the:
     (1) dollar amount to less than ten thousand dollars ($10,000)
     with respect to a payment that is made by either:
        (A) an electric funds transfer, including by wire or
        Automated Clearinghouse (ACH); or
        (B) a credit card or debit card; or
     (2) number of allowable payment transactions for a singular
     invoice to less than five (5) transactions, by either:
        (A) an electric funds transfer, including by wire or
        Automated Clearinghouse (ACH); or
        (B) a credit card or debit card.
   (f) With respect to any singular property owned by the
department, the department may request a consolidated bill for the
property from a utility that provides utility service to the property.
A utility that receives a request from the department under this
subsection shall provide the department with a singular invoice for
the entire property, regardless of the number of:
     (1) meters;
     (2) connections; or
     (3) buildings or structures served;
on the property, as applicable. However, if the utility is unable to
provide one (1) invoice for the property because of billing
limitations or other operational constraints, the utility shall
consolidate billing for the property to the greatest extent possible
and issue the fewest number of invoices necessary.
   SECTION 2. IC 14-8-2-1.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1.3. "Abandoned well", for purposes of
IC 14-39, has the meaning set forth in IC 14-39-0.6-2.
   SECTION 3. IC 14-8-2-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) "Aquifer",
for purposes of IC 14-25-7, has the meaning set forth in IC 14-25-7-1.
   (b) "Aquifer", for purposes of IC 14-39, has the meaning set
forth in IC 14-39-0.6-3.
   SECTION 4. IC 14-8-2-14.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14.5. "Area of review", for purposes of
IC 14-39, has the meaning set forth in IC 14-39-0.6-3.5.
   SECTION 5. IC 14-8-2-34.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 34.1. "Carbon dioxide", for purposes of
IC 14-39, has the meaning set forth in IC 14-39-0.6-4.
HEA 1368 — Concur
                                3
   SECTION 6. IC 14-8-2-34.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 34.2. "Carbon dioxide injection well", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-5.
   SECTION 7. IC 14-8-2-34.3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 34.3. "Carbon dioxide plume", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-6.
   SECTION 8. IC 14-8-2-34.4 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 34.4. "Carbon dioxide stream", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-7.
   SECTION 9. IC 14-8-2-34.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 34.5. "Carbon dioxide transmission
pipeline", for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-8.
   SECTION 10. IC 14-8-2-34.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 34.6. "Carbon
sequestration", for purposes of IC 14-39, has the meaning set forth
in IC 14-39-0.6-9.
   SECTION 11. IC 14-8-2-34.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 34.7. "Carbon sequestration
pilot project", for purposes of IC 14-39, has the meaning set forth
in IC 14-39-0.6-10.
   SECTION 12. IC 14-8-2-34.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 34.8. "Carbon sequestration
project", for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-11.
   SECTION 13. IC 14-8-2-50.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 50.5. "Confining zone", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-12.
   SECTION 14. IC 14-8-2-58.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 58.5. "Corrective action", for
purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-12.5.
   SECTION 15. IC 14-8-2-87.8 IS ADDED TO THE INDIANA
HEA 1368 — Concur
                                4
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 87.8. "Fault", for purposes of
IC 14-39, has the meaning set forth in IC 14-39-0.6-13.
   SECTION 16. IC 14-8-2-131.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 131.9. "Injection zone", for
purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-13.5.
   SECTION 17. IC 14-8-2-152.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 152.5. "Lithology", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-14.
   SECTION 18. IC 14-8-2-159.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 159.5. "Mechanical integrity
test", for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-15.
   SECTION 19. IC 14-8-2-164.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 164.5. "Mineral lessee", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-16.
   SECTION 20. IC 14-8-2-164.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 164.7. "Mineral owner", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-17.
   SECTION 21. IC 14-8-2-196.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 196.5. "Packer", for purposes
of IC 14-39, has the meaning set forth in IC 14-39-0.6-18.
   SECTION 22. IC 14-8-2-209.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 209.5. "Pore space", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-20.
   SECTION 23. IC 14-8-2-209.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 209.7. "Pore space owner",
for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-21.
   SECTION 24. IC 14-8-2-209.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 209.9. "Post-injection site
care", for purposes of IC 14-39, has the meaning set forth in
HEA 1368 — Concur
                                5
IC 14-39-0.6-21.5.
   SECTION 25. IC 14-8-2-211.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 211.7. "Primacy", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-22.
   SECTION 26. IC 14-8-2-240, AS AMENDED BY P.L.148-2020,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 240. (a) "Reservoir", for purposes of
IC 14-33-24, has the meaning set forth in IC 14-33-24-3.
   (b) "Reservoir", for purposes of IC 14-37, means an underground
geological formation that contains oil or natural gas.
   (c) "Reservoir", for purposes of IC 14-39, has the meaning set
forth in IC 14-39-0.6-23.
   SECTION 27. IC 14-8-2-242.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 242.3. "Responsible officer",
for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-24.
   SECTION 28. IC 14-8-2-266.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 266.9. "Storage facility", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-25.
   SECTION 29. IC 14-8-2-267.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 267.1. "Storage operator",
for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-26.
   SECTION 30. IC 14-8-2-267.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 267.3. "Stratum", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-27.
   SECTION 31. IC 14-8-2-274.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 274.7. "Surface or subsurface
property interest owner", for purposes of IC 14-39, has the
meaning set forth in IC 14-39-0.6-28.
   SECTION 32. IC 14-8-2-282.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 282.9. "Transporting carbon
dioxide", for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-29.
   SECTION 33. IC 14-8-2-285.3 IS ADDED TO THE INDIANA
HEA 1368 — Concur
                                6
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 285.3. "UIC Class VI
permit", for purposes of IC 14-39, has the meaning set forth in
IC 14-39-0.6-30.
    SECTION 34. IC 14-8-2-285.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 285.4. "UIC program", for
purposes of IC 14-39, has the meaning set forth in IC 14-39-0.6-31.
    SECTION 35. IC 14-8-2-287.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 287.3. "Underground source
of drinking water", for purposes of IC 14-39, has the meaning set
forth in IC 14-39-0.6-32.
    SECTION 36. IC 14-8-2-287.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 287.7. "Underground storage
of carbon dioxide", for purposes of IC 14-39, has the meaning set
forth in IC 14-39-0.6-33.
    SECTION 37. IC 14-39-0.5-1, AS ADDED BY P.L.158-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. The natural resources commission, in
coordination with the department, shall adopt rules under IC 4-22-2
to implement this article.
    SECTION 38. IC 14-39-0.5-2, AS ADDED BY P.L.158-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. The rules adopted by the commission under
section 1 of this chapter:
     (1) must include the provisions necessary to the department's
     discharge of the duties imposed upon the department under this
     article; and
     (2) must include the provisions necessary for the department
     to obtain the primary enforcement authority from the United
     States Environmental Protection Agency to regulate Class VI
     underground injection wells; and
     (2) (3) may establish fees for the administration and
     implementation of this article after review by the budget
     committee. In addition, the amount of the fee determined under
     this subdivision may not subsequently be increased unless the
     increase is reviewed by the budget committee.
    SECTION 39. IC 14-39-0.6 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
HEA 1368 — Concur
                                 7
   Chapter 0.6. Definitions
   Sec. 1. The definitions in this chapter apply throughout this
article and 312 IAC 30.
   Sec. 2. "Abandoned well" refers to a well:
     (1) whose use has been permanently discontinued; or
     (2) which is in a state of disrepair;
such that it cannot be used for its intended purpose or for
observation purposes.
   Sec. 3. "Aquifer" means:
     (1) a geologic formation;
     (2) a group of formations; or
     (3) part of a formation;
capable of yielding a significant amount of water to a well or
spring.
   Sec. 3.5. "Area of review" has the meaning set forth in 40 CFR
146.81.
   Sec. 4. "Carbon dioxide" means a fluid consisting of carbon
dioxide molecules.
   Sec. 5. "Carbon dioxide injection well" refers to a well that
meets the following criteria:
     (1) Is in compliance with a UIC Class VI permit.
     (2) Is used to inject carbon dioxide into a reservoir for carbon
     sequestration.
     (3) Is not experimental in nature.
     (4) Is used for geologic sequestration of carbon dioxide
     beneath the lowermost formation containing an underground
     source of drinking water.
     (5) Is used for geologic sequestration of carbon dioxide that
     has been granted a waiver of the injection depth
     requirements.
     (6) Is used for geologic sequestration of carbon dioxide that
     has received an expansion to the areal extent of an existing
     Class II enhanced oil recovery or enhanced gas recovery
     aquifer exemption.
   Sec. 6. "Carbon dioxide plume" means the extent of an
underground three-dimensional injected carbon dioxide stream.
   Sec. 7. (a) "Carbon dioxide stream" means carbon dioxide that:
     (1) has been captured from an emission source; and
     (2) consists of:
         (A) incidental associated substances derived from the
         source materials and capture process; and
         (B) any substance added to the carbon dioxide stream to
HEA 1368 — Concur
                                 8
        enable or improve the injection process.
   (b) The term does not include a carbon dioxide stream that is
considered hazardous waste under 40 CFR 261.
   Sec. 8. "Carbon dioxide transmission pipeline" means the part
of a pipeline in Indiana, including:
     (1) appurtenant facilities;
     (2) property rights; and
     (3) easements;
used exclusively for the purpose of transporting carbon dioxide to
a carbon management application, including sequestration,
enhanced oil recovery, and deep saline injection, within or outside
Indiana.
   Sec. 9. (a) "Carbon sequestration" means the long term
containment of a:
     (1) gaseous;
     (2) liquid; or
     (3) supercritical;
carbon dioxide stream in subsurface geologic formations.
   (b) The term does not apply to carbon dioxide capture or
transport.
   Sec. 10. "Carbon sequestration pilot project" refers to the pilot
project described in IC 14-39-1-3.5.
   Sec. 11. (a) "Carbon sequestration project" refers to the long
term geologic sequestration of a:
     (1) gaseous;
     (2) liquid; or
     (3) supercritical;
carbon dioxide stream in a subsurface geologic formation that
requires a UIC Class VI permit.
   (b) The term does not apply to carbon dioxide capture or
transport.
   (c) The term includes the following:
     (1) The subsurface three-dimensional extent of the carbon
     dioxide plume.
     (2) The subsurface three-dimensional associated area of
     elevated pressure.
     (3) The subsurface three-dimensional displaced fluids.
     (4) The surface area above the delineated region described in
     subdivisions (1) through (3).
   Sec. 12. "Confining zone" means:
     (1) a geologic formation;
     (2) a group of geologic formations; or
HEA 1368 — Concur
                                 9
      (3) part of a geologic formation;
capable of limiting the movement of the carbon dioxide stream and
all fluids above an injection zone.
    (b) For a carbon dioxide injection well permitted by a UIC Class
VI permit under an injection depth waiver, the term means a:
      (1) geologic formation;
      (2) group of geologic formations; or
      (3) part of a geologic formation;
stratigraphically overlying and underlying the injection zone.
    Sec. 12.5. "Corrective action" means action:
      (1) taken by the owner or operator of a permitted Class VI
      carbon dioxide injection well; and
      (2) approved by the director;
to ensure that a carbon dioxide injection well within the area of
review does not serve as conduits for the movement of fluids into
underground sources of drinking water.
    Sec. 13. "Fault" means a surface or zone or rock fracture along
which there has been displacement.
    Sec. 13.5. "Injection zone" means a geological:
      (1) formation;
      (2) group of formations; or
      (3) part of a formation;
that is conducive to receiving carbon dioxide with a permitted
carbon sequestration project.
    Sec. 14. "Lithology" means the description of rocks on the basis
of their physical and chemical characteristics.
    Sec. 15. "Mechanical integrity test" refers to a test performed
on a well permitted by a UIC Class VI permit that meets the
requirements established under 40 CFR 146.8.
    Sec. 16. "Mineral lessee" means a lessee identified by the
records of the recorder of deeds for each county containing a
portion of the proposed reservoir who holds an interest in minerals
on real property that are located above, below, or within the
proposed reservoir that has been severed from the surface estate
by:
      (1) grant;
      (2) exception;
      (3) reservation;
      (4) lease; or
      (5) any other means.
    Sec. 17. "Mineral owner" means an owner identified by the
records of the recorder of deeds for each county containing a
HEA 1368 — Concur
                                  10
portion of the proposed reservoir who holds an interest in minerals
on real property that are located above, below, or within the
proposed reservoir that has been severed from the surface estate
by:
      (1) grant;
      (2) exception;
      (3) reservation;
      (4) lease; or
      (5) any other means.
    Sec. 18. "Packer" means a device lowered into a well to produce
a fluid-tight seal.
    Sec. 19. "Person" means:
      (1) an individual;
      (2) a legal entity;
      (3) a government entity; or
      (4) an employee of a:
         (A) legal entity; or
         (B) government entity.
    Sec. 20. "Pore space" means a subsurface geological cavity or
void that is of a sufficient areal extent, thickness, porosity, and
permeability to receive and store carbon dioxide through a carbon
sequestration project well.
    Sec. 21. "Pore space owner" means:
      (1) a person;
      (2) a trust;
      (3) a corporation; or
      (4) another entity;
that has title to, a right to, or an interest in pore space.
    Sec. 21.5. "Post-injection site care" refers to the requirements
set forth in 40 CFR 146.93.
    Sec. 22. "Primacy" means primary enforcement authority over
Class VI wells under the Safe Drinking Water Act.
    Sec. 23. "Reservoir" means a subsurface geological:
      (1) sedimentary stratum;
      (2) formation;
      (3) saline aquifer;
      (4) cavity; or
      (5) void;
that is naturally or artificially created for the use of, or is capable
of being made suitable for, injecting and storing carbon dioxide.
    Sec. 24. (a) "Responsible officer" means a person who has the
authority to legally obligate an entity to comply with federal law.
HEA 1368 — Concur
                                  11
    (b) The term includes the following:
      (1) An authorized officer of a corporation.
      (2) A manager of a limited liability company, or if the limited
      liability company is managed by another company, an
      authorized officer of the managing company.
      (3) A partner in a general, limited, or limited liability
      partnership or, if the partner is an entity, an authorized
      officer of the general, limited, or limited liability partnership.
      (4) An individual authorized as a permitted signatory by
      another entity under federal regulations adopted by the
      department not included under subdivisions (1) through (3).
    Sec. 25. "Storage facility" means the subsurface area consisting
of the extent of a carbon dioxide plume which is required to be set
forth on an approved UIC Class VI permit or an amendment to a
UIC Class VI permit of a storage operator.
    Sec. 26. "Storage operator" means:
      (1) a person;
      (2) a trust;
      (3) a corporation; or
      (4) another entity;
that owns or operates a carbon sequestration project.
    Sec. 27. "Stratum" means a single sedimentary bed or layer,
regardless of thickness, that consists of generally the same kind of
rock material.
    Sec. 28. "Surface or subsurface property interest holder" means
a property interest owner identified by the records of the recorder
of deeds for each county containing a portion of the proposed
storage facility who holds a fee simple interest or other freehold
interest in the surface or subsurface of the property, which may
include mineral rights. The term does not include the owner of a
right-of-way, an easement, or a leasehold.
    Sec. 29. (a) "Transporting carbon dioxide" means the movement
of carbon dioxide to a carbon dioxide injection well located outside
the storage facility for which a certificate of authority for a carbon
dioxide transmission pipeline is required.
    (b) The term under subsection (a) includes a carbon dioxide
transmission pipeline that crosses a parcel above pore space that
is:
      (1) a public right-of-way; or
      (2) acquired by:
          (A) eminent domain; or
          (B) an integration order.
HEA 1368 — Concur
                                12
   (c) The term under subsection (a) does not include movement of
carbon dioxide to a carbon dioxide injection well inside the
boundaries of contiguous property owned by an applicant or under
IC 14-39-1-4.5.
   Sec. 30. (a) "UIC Class VI permit" means a permit issued under
the federal Safe Drinking Water Act's Underground Injection
Control program that allows:
     (1) a person;
     (2) a trust;
     (3) a corporation; or
     (4) another entity;
to construct or operate a carbon dioxide injection well.
   (b) The term does not include a:
     (1) draft permit;
     (2) proposed permit; or
     (3) permit that is not subject to final agency action.
   (c) The term does not authorize the transportation of carbon
dioxide.
   Sec. 31. "UIC program" refers to the program carried out by:
     (1) the United States Environmental Protection Agency; or
     (2) an approved state or tribe;
under the Safe Drinking Water Act to regulate underground
injection.
   Sec. 32. "Underground source of drinking water" means an
aquifer or its portion which:
     (1) supplies any public water system; or
     (2) contains a sufficient quantity of ground water to supply a
     public water system and:
        (A) currently supplies drinking water for human
        consumption; or
        (B) contains fewer than ten thousand (10,000) milligrams
        per liter of total dissolved solids;
     and which is not an exempted aquifer.
   Sec. 33. "Underground storage of carbon dioxide" means the
injection and storage of carbon dioxide into underground strata
and formations pursuant to at least one (1) UIC Class VI permit.
   SECTION 40. IC 14-39-1-1 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 1. As used in this chapter, "carbon dioxide" means a
fluid consisting of more than ninety percent (90%) carbon dioxide
molecules.
   SECTION 41. IC 14-39-1-2 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2. As used in this chapter, "carbon dioxide
HEA 1368 — Concur
                                   13
transmission pipeline" means the part of a pipeline in Indiana,
including appurtenant facilities, property rights, and easements, that is
used exclusively for the purpose of transporting carbon dioxide to a
carbon management application, including sequestration, enhanced oil
recovery, and deep saline injection, within or outside Indiana.
   SECTION 42. IC 14-39-1-2.4 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2.4. As used in this chapter, "carbon sequestration
pilot project" refers to the pilot project described in section 3.5 of this
chapter.
   SECTION 43. IC 14-39-1-2.5 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2.5. As used in this chapter, "underground storage of
carbon dioxide" means the injection of carbon dioxide into, and storage
of carbon dioxide in, underground strata and formations at the site of
the carbon sequestration pilot project, as described in section 3.5 of this
chapter, pursuant to one (1) or more federal permits issued by the
United States Environmental Protection Agency.
   SECTION 44. IC 14-39-1-2.6 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2.6. As used in this chapter, "person" includes a
political body, a corporate body, and the state of Indiana.
   SECTION 45. IC 14-39-1-2.7 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2.7. As used in this chapter, "pore space" means
subsurface cavities or voids that can be used as a storage space for
carbon dioxide.
   SECTION 46. IC 14-39-1-3.5, AS AMENDED BY P.L.53-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. (a) This chapter authorizes the
establishment of a carbon sequestration pilot project:
      (1) that will:
         (A) capture carbon dioxide at the proposed ammonia plant to
         be located at 444 West Sandford Avenue, West Terre Haute,
         Indiana;
         (B) construct, operate, or use not more than two (2) carbon
         dioxide pipelines;
         (C) maintain operations only in Vigo and Vermillion counties;
         and
         (D) inject the carbon dioxide underground through one (1) or
         more injection wells pursuant to a Class VI well permit issued
         by the United States Environmental Protection Agency; and
      (2) that will employ the underground storage of carbon dioxide as
      an alternative to releasing the carbon dioxide into the air.
   (b) The director shall designate the operator of the carbon
sequestration pilot project according to the characteristics of the pilot
HEA 1368 — Concur
                                    14
project set forth in subsection (a) not more than thirty (30) days after
the Class VI well permit referred to in subsection (a)(1)(D) is issued by
the United States Environmental Protection Agency.
    (c) The injection well issued a Class VI well permit by the
United States Environmental Protection Agency is not
experimental.
    (c) (d) This section expires July 1, 2028, if the operator of the
carbon sequestration pilot project designated under subsection (b)
according to the characteristics set forth in subsection (a) is not issued
a Class VI permit by the United States Environmental Protection
Agency under 40 CFR 146 subpart H by July 1, 2028.
    SECTION 47. IC 14-39-1-11, AS AMENDED BY P.L.92-2025,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. A determination of the department under
section 4(e)(2) of this chapter is subject to an administrative
adjudication under IC 4-21.5.
    SECTION 48. IC 14-39-1-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 19. The department may
establish siting and setback requirements for carbon dioxide
transmission pipelines.
    SECTION 49. IC 14-39-2-1, AS ADDED BY P.L.163-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) This chapter applies to primacy
granted by the United States Environmental Protection Agency to
the department over Class VI wells.
    (b) This chapter and 312 IAC 30 govern carbon sequestration
in the state and establish the criteria and standards necessary for
the department to receive primacy from the United States
Environmental Protection Agency for the UIC program for Class
VI wells under the Safe Drinking Water Act.
    (a) (c) Except as otherwise provided in this chapter, this chapter:
      (1) does not apply to extractable mineral resources;
      (b) (2) Except as otherwise provided in this chapter, this chapter
      does not preclude the exercise of rights provided by IC 14-37-9;
      and
      (c) (3) Except as otherwise provided in this chapter, this chapter
      applies to the underground storage of carbon dioxide.
    (d) The rights and requirements of this chapter:
      (1) are subordinate to the rights pertaining to oil, gas, and coal oil
      and gas resources; and
      (2) may not adversely affect oil, gas, and coal oil and gas
HEA 1368 — Concur
                                   15
      resources, except as is strictly necessary to construct and maintain
      a carbon sequestration project that will provide for the permanent
      storage of carbon dioxide.
    (e) The department shall issue any additional rules or
requirements essential to ensure the injection and storage of
carbon dioxide stream in subsurface geologic formations does not
endanger underground sources of drinking water.
    (f) The department may enter into a memorandum of agreement
to implement this article.
    SECTION 50. IC 14-39-2-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1.5. (a) Carbon sequestration
projects are authorized in Indiana for the purposes of:
      (1) injecting carbon dioxide into the pore space of an
      underground storage facility through at least one (1) carbon
      dioxide injection well pursuant to a UIC Class VI permit; and
      (2) employing the underground storage of carbon dioxide.
    (b) The department has the authority to adopt regulations
consistent with:
      (1) 40 CFR 141 through 146;
      (2) the federal Safe Drinking Water Act (42 U.S.C.
      300h(b)(1)); and
      (3) any other federal regulation necessary;
to obtain primacy on behalf of the state of Indiana.
    (c) A person may not operate a carbon sequestration project in
Indiana without a valid permit issued by the department.
    (d) A permit for a carbon sequestration project may be
transferred or assigned from one storage operator to another
storage operator.
    (e) All injection activities, including construction of an injection
well, are prohibited unless the owner or operator is authorized by
permit.
    (f) A person operating a carbon sequestration project in Indiana
shall comply with the federal Safe Drinking Water Act (42 U.S.C.
300h(b)(1)) to prevent underground injection which endangers
drinking water sources.
    (g) The department may, at a reasonable time, enter property
on which a carbon dioxide injection well or monitoring well for the
storage facility is located to inspect and maintain the well or
storage facility. Except in the event of an emergency, the
department shall provide advance notice to the owner of the
surface property of the date the department intends to enter the
HEA 1368 — Concur
                                  16
property. The notice required by this subsection must be provided
at least five (5) business days before the department intends to
enter the property. The notice must be delivered by:
       (1) United States mail;
       (2) private courier;
       (3) personal delivery; or
       (4) any other manner agreed to in writing between the
       department and the owner of the surface property.
    SECTION 51. IC 14-39-2-2 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 2. (a) The following definitions apply throughout this
chapter.
    (b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
    (c) "Carbon dioxide injection well" refers to a well that is used to
inject carbon dioxide into a reservoir for carbon sequestration pursuant
to a UIC Class VI permit.
    (d) "Carbon dioxide plume" means the extent of an underground
three-dimensional injected carbon dioxide stream.
    (e) "Carbon sequestration" means the underground storage of carbon
dioxide in a reservoir.
    (f) "Carbon sequestration project" means any project that involves
the underground storage of carbon dioxide in a reservoir pursuant to at
least one (1) UIC Class VI permit.
    (g) "Mineral lessee" means a lessee identified by the records of the
recorder of deeds for each county containing a portion of the proposed
reservoir who holds an interest in minerals on real property that are
located above, below, or within the proposed reservoir that has been
severed from the surface estate by:
       (1) grant;
       (2) exception;
       (3) reservation;
       (4) lease; or
       (5) any other means.
    (h) "Mineral owner" means an owner identified by the records of the
recorder of deeds for each county containing a portion of the proposed
reservoir who holds an interest in minerals on real property that are
located above, below, or within the proposed reservoir that has been
severed from the surface estate by:
       (1) grant;
       (2) exception;
       (3) reservation;
       (4) lease; or
       (5) any other means.
HEA 1368 — Concur
                                   17
    (i) "Pore space" means subsurface cavities or voids that can be used
as a storage space for carbon dioxide.
    (j) "Pore space owner" means:
       (1) a person;
       (2) a trust;
       (3) a corporation; or
       (4) another entity;
that has title to, a right to, or an interest in pore space.
    (k) "Reservoir" means a subsurface:
       (1) sedimentary stratum;
       (2) formation;
       (3) aquifer;
       (4) cavity; or
       (5) void;
that is naturally or artificially created for the use of, or is capable of
being made suitable for, injecting and storing carbon dioxide.
    (l) "Storage facility" means the subsurface area consisting of the
extent of a carbon dioxide plume which is required to be delineated on
an approved UIC Class VI permit or an amendment to a UIC Class VI
permit of a storage operator.
    (m) "Storage operator" means:
       (1) a person;
       (2) a trust;
       (3) a corporation; or
       (4) another entity;
that operates a carbon sequestration project.
    (n) "Surface or subsurface property interest owner" means a
property interest owner identified by the records of the recorder of
deeds for each county containing a portion of the proposed storage
facility who holds a fee simple interest or other freehold interest in the
surface or subsurface of the property, which may include mineral
rights. The term does not include the owner of a right-of-way, an
easement, or a leasehold.
    (o) "UIC Class VI permit" means a permit issued under the federal
Safe Drinking Water Act's Underground Injection Control program that
allows:
       (1) a person;
       (2) a trust;
       (3) a corporation; or
       (4) another entity;
to construct or operate a carbon dioxide injection well.
    (p) "Underground storage of carbon dioxide" means the injection
HEA 1368 — Concur
                                    18
and storage of carbon dioxide into underground strata and formations
pursuant to at least one (1) UIC Class VI permit.
   SECTION 52. IC 14-39-2-4, AS AMENDED BY P.L.213-2025,
SECTION 135, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4. (a) If at least two (2) pore
space owners own pore space located within a proposed carbon dioxide
storage area of a storage facility, the owners may agree to integrate
their interests to develop the pore space as a proposed storage facility
for the underground storage of carbon dioxide.
   (b) If all of the owners of the pore space under subsection (a) do not
agree to integrate their interests, the department may issue an order
requiring the owners to integrate their interests and to develop the pore
space as a proposed storage facility for the underground storage of
carbon dioxide to serve the public interest, prevent waste, protect
correlative rights, and facilitate the efficient and effective use of natural
resources subject to the findings under subsection (c).
   (c) Before issuing an order under subsection (b), the department
must make the following findings:
      (1) That a storage operator:
         (A) filed a complete application for a UIC Class VI permit or
         a complete application for an amended UIC Class VI permit;
         and
         (B) submitted all the necessary information to the United
         States Environmental Protection Agency for the agency to
         process the storage operator's permit application.
      (2) That the storage operator has made a good faith effort to
      obtain the consent of all pore space owners located within the
      proposed storage facility.
      (3) That the storage operator has obtained the consent of the
      owners of the pore space underlying at least seventy percent
      (70%) of the surface area above the proposed storage facility or
      amended proposed storage facility.
      (4) That all pore space owners who do not agree to integrate their
      interests to develop the pore space as a proposed storage facility
      for the underground storage of carbon dioxide are equitably
      compensated.
   (d) A right to pore space granted by this section does not confer a
right to enter upon, or otherwise use, the surface of the land which is
integrated under this section unless provided in an order requiring the
owners to integrate their interests and to develop the pore space as a
proposed storage facility for the underground storage of carbon
dioxide.
HEA 1368 — Concur
                                    19
   (e) An involuntary integration order issued by the department takes
effect fifteen (15) days after the applicant is issued a UIC Class VI
permit or an amended UIC Class VI permit, as applicable.
   (f) Except by agreement of the parties, an involuntary
integration order issued by the department may not be construed
to result in a transfer of all or any part of the title of any property
included in the involuntary integration order. All property
included in the involuntary integration order is the property of the
owner, not the person requesting the involuntary integration order.
   SECTION 53. IC 14-39-2-5, AS AMENDED BY P.L.213-2025,
SECTION 136, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Carbon sequestration
projects are authorized in Indiana for the purposes of:
      (1) injecting carbon dioxide into the pore space of an underground
      storage facility through at least one (1) carbon dioxide injection
      well pursuant to a UIC Class VI permit; and
      (2) employing the underground storage of carbon dioxide.
   (b) A storage operator may not operate a carbon sequestration
project in Indiana without:
      (1) a UIC Class VI permit; and
      (2) a valid permit issued by the department.
   (c) If a carbon sequestration project is owned by an entity other than
the storage operator, the storage operator shall be responsible for
obtaining a permit for a carbon sequestration project under subsection
(b). A permit for a carbon sequestration project may be transferred or
assigned from one (1) storage operator to another storage operator.
   (d) (a) An individual may apply to the department for a permit for
a carbon sequestration project in a form and manner prescribed by the
department.
   (e) (b) A single permit is issued in two (2) phases as follows:
      (1) A permit to construct and operate.
      (2) An authorization to inject.
   (c) An A complete application under subsection (d) this section
must include the following:
      (1) A filing fee equal to the product of:
          (A) the given amount of metric tons of carbon dioxide
          proposed to be injected into the storage facility during the first
          ten (10) years of the permit for the carbon sequestration
          project; multiplied by
          (B) one cent ($0.01).
      The filing fee amount determined under this subdivision shall be
      collected by the department and deposited in the carbon
HEA 1368 — Concur
                                 20
   sequestration project program administrative fund established by
   section 10.5 of this chapter.
   (2) The applicant's: signature of the applicant.
      (A) name;
      (B) address;
      (C) telephone number;
      (D) electronic mail address;
      (E) ownership status;
      (F) status as a:
         (i) federal;
         (ii) state;
         (iii) private;
         (iv) public; or
         (v) other;
      entity;
      (G) signature; and
      (H) signed copy of the certification described in 40 CFR
      144.32(d).
   (3) A statement verifying that the information submitted is true,
   accurate, and complete to the best of applicant's knowledge.
   (4) Information illustrating that the applicant has the financial,
   managerial, and technical ability to construct, operate, and
   maintain a carbon sequestration project.
   (5) Information illustrating that the applicant or the contractors or
   subcontractors of the applicant have the requisite expertise in
   constructing, operating, and maintaining a carbon sequestration
   project.
   (6) Documentation to the department describing the scope of the
   proposed carbon sequestration project.
   (7) A statement describing how the applicant will construct,
   operate, and maintain the proposed carbon sequestration project
   in accordance with applicable local, state, and federal law,
   including federal and state safety regulations and rules governing
   the construction, operation, and maintenance of the carbon
   sequestration project, and related facilities and equipment, to
   ensure the safety of the carbon sequestration project employees
   and the public.
   (8) A statement that the interests of a mineral lessee or mineral
   owner will not be adversely affected. If a mineral owner or
   mineral lessee is adversely affected, the adversely affected
   mineral owner or mineral lessee and the applicant may enter into
   an agreement under section 4 of this chapter.
HEA 1368 — Concur
                               21
   (9) A map showing the injection well for which a permit is
   sought and the applicable areas of review consistent with
   federal regulations. The map must show any known or
   suspected faults. Within the area of review, the map must
   show the number, name, and location of the following:
       (A) Injection wells.
       (B) Producing wells.
       (C) Abandoned wells.
       (D) Plugged wells or dry holes.
       (E) Deep stratigraphic boreholes.
       (F) State or United States Environmental Protection
       Agency approved subsurface cleanup sites.
       (G) Surface bodies of water.
       (H) Springs.
       (I) Surface and subsurface mines.
       (J) Quarries.
       (K) Water wells.
       (L) Other pertinent surface features, including structures
       intended for:
         (i) human occupancy;
         (ii) state, tribal, and territory boundaries; and
         (iii) roads.
   Only information of public record is required to be included
   in this map.
   (10) A list of contacts for those states, tribes, and territories
   identified within the area of review of the Class VI project
   based on the information required in this section.
   (11) Information on the geologic structure and hydrogeologic
   properties of the proposed storage site and overlying
   formations.
   (12) A tabulation of each well within the area of review that
   penetrates each injection zone or confining zone.
   (13) Maps and stratigraphic cross sections indicating:
       (A) the general vertical and lateral limits of all:
         (i) underground sources of drinking water; and
         (ii) water wells and springs within the area of review;
       (B) the position of any underground source of drinking
       water, water well, or spring relative to the positions of each
       injection zone; and
       (C) directions of water movement, if known.
   (14) Baseline geochemical data on subsurface formations,
   including all underground sources of drinking water in the
HEA 1368 — Concur
                              22
   area of review.
   (15) Proposed operating data for the proposed geologic
   sequestration site.
   (16) A proposed preoperational formation testing program to
   obtain an analysis of the chemical and physical characteristics
   of the injection zones and confining zone and which meets the
   requirements of the department.
   (17) A proposed stimulation program, a description of
   stimulation fluids to be used, and a determination that
   stimulation will not interfere with containment.
   (18) A proposed procedure to outline steps necessary to
   conduct injection operation.
   (19) Schematics or other appropriate drawings of the surface
   and subsurface construction details of the well.
   (20) Injection well construction procedures that meet all
   requirements of the department.
   (21) A proposed area of review and corrective action plan.
   (22) Proof that financial responsibility requirements of the
   department are met.
   (23) A proposed testing and monitoring plan.
   (24) A well plugging plan.
   (25) An emergency and remedial response plan.
   (26) A post-injection site care and site closure plan or an
   alternative post-injection site care framework. At any time
   during the life of the project, a storage operator may modify
   and resubmit the post-injection site care and site closure plan
   for approval by the department at least thirty (30) days before
   the change is made. Upon ceasing injection, a storage operator
   must do the following:
       (A) Submit an amended post-injection site care and site
       closure plan.
       (B) Demonstrate through monitoring data and modeling
       results that an amendment is not needed. An amendment
       must be approved by the department, must be
       incorporated into the permit, and is subject to permit
       modification requirements.
       (C) Submit evidence of managerial and technical ability to
       construct, operate, and maintain a carbon sequestration
       project.
   (27) Each local, state, or federal permit obtained by the
   applicant.
   (28) Any other information required by the department.
HEA 1368 — Concur
                                   23
   (f) (d) During the first ten (10) years of the permit for a carbon
sequestration project, if the carbon sequestration project injects more
metric tons of carbon dioxide into the storage facility than was
proposed under the original application under subsection (e), (c), the
storage operator shall pay the filing fee under subsection (e) (c) for the
additional metric tons of carbon dioxide injected into the storage
facility during the first ten (10) years of the permit for the carbon
sequestration project.
   (g) (e) A fee paid under this section is not refundable by the
department.
   (f) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
   SECTION 54. IC 14-39-2-5.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.1. (a) A storage operator
must demonstrate to the satisfaction of the department that the
wells will be sited in areas with a suitable geologic formation. The
storage operator must demonstrate that the geologic formation is
composed of the following:
      (1) An injection zone of sufficient areal extent, thickness,
      porosity, and permeability to receive the total anticipated
      volume of the carbon dioxide stream.
      (2) A confining zone free of transmissive faults or fractures
      and of sufficient areal extent and integrity to contain the
      injected carbon dioxide stream and displaced formation fluids
      and allow injection at proposed maximum pressures and
      volumes without initiating or propagating fractures in the
      confining zone.
   (b) The department may require a storage operator to identify
and characterize additional injection zones that:
      (1) will impede vertical fluid movement;
      (2) are free of faults and fractures that may interfere with
      containment;
      (3) allow for pressure dissipation; and
      (4) provide additional opportunities for:
         (A) monitoring;
         (B) mitigation; and
         (C) remediation.
   SECTION 55. IC 14-39-2-5.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.2. (a) A storage operator
must ensure that each Class VI well is constructed and completed
HEA 1368 — Concur
                                24
for the following:
     (1) To prevent the movement of fluids into or between
     underground sources of drinking water or into any
     unauthorized zones.
     (2) To permit the use of appropriate testing devices and
     workover tools.
     (3) To permit continuous monitoring of the annulus space
     between the injection tubing and long string casing.
   (b) Casing and cement or other materials used in the
construction of each Class VI well must have sufficient structural
strength and be designed for the life of the geologic sequestration
project. All well materials must be compatible with fluids with
which the materials may be expected to come into contact and must
meet federal standards or be comparable to standards required by
the department.
   (c) Tubing and packer materials used in the construction of each
Class VI well must be compatible with fluids with which the
materials may be expected to come into contact and must meet
federal standards or be comparable to standards required by the
department.
   (d) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
   SECTION 56. IC 14-39-2-5.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.3. During the drilling and
construction of a Class VI injection well, a storage operator must:
     (1) perform appropriate logs;
     (2) perform surveys and tests to determine or verify the:
         (A) depth;
         (B) thickness;
         (C) porosity;
         (D) permeability;
         (E) lithology; and
         (F) salinity;
     of any formation fluids in all relevant geologic formations to
     ensure conformance with the injection well construction
     requirements of the department; and
     (3) establish accurate baseline data against which future
     measurements may be compared.
The storage operator must submit to the department a report
prepared by a log analyst that includes an interpretation of the
results of each log and test.
HEA 1368 — Concur
                                25
   SECTION 57. IC 14-39-2-5.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.4. (a) A storage operator
may apply to the department for a depth requirement waiver.
   (b) An application under subsection (a) must include the
following:
     (1) The depth of each proposed injection zone.
     (2) The location of each injection well.
     (3) The name and depth of all underground sources of
     drinking water within the area of review.
     (4) A map of the area of review.
     (5) The names of public water supplies:
         (A) affected;
         (B) reasonably likely to be affected; or
         (C) served;
     by underground sources of drinking water in the area of
     review.
     (6) The results of an underground injection control and public
     water system supervision consultation of all states and tribes
     having jurisdiction over lands within the area of review of a
     well for which a waiver is sought.
     (7) A supplemental report that meets the requirements set by
     the department that provides data as required by section 5.3
     of this chapter.
   (c) A storage operator that applies to the department for a
depth requirement waiver must post public notice that a waiver
application was submitted by publication in at least one (1)
newspaper of general circulation in each county affected by the
application. Notice under this subsection must include the
information required under subsection (b).
   (d) Following public notice under this section, the department
shall provide all information provided in the application to the
department of environmental management and the United States
Environmental Protection Agency. The department of
environmental management must concur or dissent in writing
regarding the waiver. The department shall request feedback and
a concurrence on the application from the United States
Environmental Protection Agency.
   (e) To make a decision whether to concur or dissent, the
department of environmental management may do the following:
     (1) Request that additional information be provided to
     support a decision.
HEA 1368 — Concur
                                  26
     (2) Require that public notice of new information be initiated.
   (f) The department may not approve a waiver without a written
concurrence from the:
     (1) department of environmental management; and
     (2) United States Environmental Protection Agency.
   (g) If a waiver is issued, not later than thirty (30) days after the
waiver is issued, the department and the department of
environmental management shall post the following on their
respective websites:
     (1) The depth of each proposed injection zone.
     (2) The location of each injection well.
     (3) The name and depth of each underground source of
     drinking water within the area of review.
     (4) A map of the area of review.
     (5) The names of each public water supply affected,
     reasonably likely to be affected, or served by underground
     sources of drinking water in the area of review.
     (6) The date the waiver was issued.
   (h) Upon receiving a waiver under this section, the storage
operator must comply with any modified construction
requirements or other requirements resulting from the waiver.
   SECTION 58. IC 14-39-2-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.5. (a) Upon determining
that an application is complete, the department must decide
whether to:
     (1) prepare a draft permit for the public comment process; or
     (2) deny the application.
The department shall notify the applicant of the decision.
   (b) If the department decides to prepare a draft permit, the
permit must contain the following:
     (1) Conditions of the permit.
     (2) Compliance schedules.
     (3) Monitoring requirements.
   (c) Within seven (7) days after receiving the completed
application, the department shall prepare and provide to the
applicant a project decision schedule that specifies target dates by
which the department intends to:
     (1) prepare a draft permit;
     (2) give public notice;
     (3) complete the public comment period, including any public
     hearing; and
HEA 1368 — Concur
                                27
     (4) issue a final permit.
   (d) The department may not deny an application without a
public comment period and hearing.
   (e) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
   SECTION 59. IC 14-39-2-5.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.6. (a) The department shall
hold a public hearing before issuing a permit.
   (b) Notice of the hearing must be published for two (2)
consecutive weeks in a newspaper of general circulation in each
county where the carbon sequestration project is proposed to be
located. Publication deadlines must comply with department rules.
   (c) Notice of the hearing must be given to each:
     (1) mineral lessee;
     (2) mineral owner; and
     (3) pore space owner;
within the carbon sequestration project and within one-half (1/2)
mile of the reservoir's boundaries. Notice shall be completed by
mail or third party commercial delivery and addressed to the last
address of record for the individual or entity to be served.
   (d) Notice of the hearing must be given to each surface owner of
land overlying the carbon sequestration project and within
one-half (1/2) mile of the reservoir's boundaries. Notice shall be
completed by mail or third party commercial delivery and
addressed to the last address of record for the individual or entity
to be served.
   (e) The department may provide notice of the hearing to any
additional person the department deems necessary.
   (f) Hearing notices required by this section must comply with
deadlines set by the department and contain any additional
information the department requires.
   (g) An applicant for a permit shall pay the costs the department
incurs in:
     (1) publishing the notice for a hearing; and
     (2) holding a hearing;
on a permit application.
   (h) Following a public hearing under this section, the
department must post the following on the website for the
department:
     (1) Whether a permit application has been tentatively denied.
     (2) Whether a draft permit was prepared.
HEA 1368 — Concur
                                  28
      (3) Whether any other hearings have been scheduled.
      (4) Whether an appeal was granted.
   (i) Public notice is not required when a request for permit
modification, revocation and reissuance, or termination is denied.
The department must provide written notice of a denial to the
requester and to the storage operator.
   (j) The department must provide at least thirty (30) days for
public comment.
   (k) Notice of a public hearing must be given at least thirty (30)
days before the public hearing.
   (l) The department shall provide public notice of the public
comment period and public hearing as required by federal
regulations and rules adopted by the department. The department
may recuperate expenses for notice from the storage operator.
   (m) A notice of the public comment period or public hearing
under this section must include the following information:
      (1) The name and address of the office processing the permit
      action for which notice is being given.
      (2) The name and address of the permittee of the permit
      applicant and, if different, of the facility or activity being
      regulated by the permit.
      (3) A brief description of the business conducted at the facility
      or activity being described in the permit application or the
      draft permit.
      (4) The name, address, and telephone number of a person at
      the department that an interested person may contact to
      obtain information, including copies of the draft permit, fact
      sheet, and the application.
      (5) A brief description of the comment procedures required
      by the department and the date, time, and place of a public
      hearing that will be held, including information regarding
      how to request a hearing and other procedures by which the
      public may participate in the final permit decision.
      (6) Reference to the date of previous public notices related to
      the permit.
      (7) The date, time, and place of the hearing.
      (8) A brief description of the nature and purpose of the
      hearing, including applicable rules and procedures.
      (9) Any additional information required by the department.
   (n) During a comment period, any interested person may submit
written comments on the draft permit and may request a public
hearing, if a hearing has not already been scheduled. A request for
HEA 1368 — Concur
                                 29
a public hearing must:
      (1) be in writing; and
      (2) state the nature of the issues proposed to be raised in the
      hearing.
All comments shall be considered by the department in making a
final decision as to whether to issue the permit and must be
answered as required under subsection (p).
    (o) The department shall hold a public hearing whenever there
is a significant degree of public interest in a draft permit. The
department may hold a public hearing at the discretion of the
department if the public hearing would clarify at least one (1) issue
involved in the permit decision.
    (p) At the time a final permit decision is issued, the department
shall issue a response to comments. The response must:
      (1) specify which provisions, if any, of the draft permit were
      changed in the final permit, and the reasons for each change;
      and
      (2) briefly describe and respond to all substantive comments
      on the draft permit raised during the public comment period
      or during any hearing.
Response to comments must be made available to the public on the
website for the department.
    (q) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
    SECTION 60. IC 14-39-2-5.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.7. (a) The department shall
identify and protect all underground sources of drinking water and
all aquifers and parts of aquifers that are underground sources of
drinking water.
    (b) If the United States Environmental Protection Agency
determines there is an applicable aquifer exemption or an
expansion to the areal extent of an existing Class II enhanced oil
recovery or enhanced gas recovery aquifer exemption for the
exclusive purpose of Class VI injection for geologic sequestration,
then the department shall assist the United States Environmental
Protection Agency in regulating the aquifer exemption.
    (c) The department may not issue an aquifer exemption.
    (d) Other than aquifer exemption expansions approved by the
United States Environmental Protection Agency that meet the
criteria set forth in 40 CFR 144.7, the department may not issue a
new aquifer exemption for a Class VI injection well. This
HEA 1368 — Concur
                                   30
subsection applies regardless of whether an aquifer has been
identified by the department as an underground source of drinking
water.
    (e) The department shall comply with 40 CFR 144.7 regarding
aquifer exemptions.
    SECTION 61. IC 14-39-2-6, AS AMENDED BY P.L.213-2025,
SECTION 137, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The department shall
review an application submitted under section 5(d) 5(a) of this chapter.
If the department determines that the application submitted under
section 5(d) 5(a) of this chapter is complete, the department shall notify
the applicant.
    (b) The department shall return an application to the applicant if the
department determines that the application is incomplete, inaccurate,
or both.
    (c) If the department returns an application to an applicant under
subsection (b), the department shall inform the applicant in writing that
the applicant may file a corrected application not more than sixty (60)
days after the receipt of the returned application.
    (d) Upon receiving a complete application under this section, the
department shall review the application.
    (e) Upon receiving notification that an application is complete, the
applicant shall:
       (1) not more than sixty (60) days after receiving the notice under
       this subsection:
          (A) place for public inspection a copy of the application in a
          public library located in each county in which the carbon
          sequestration project is proposed to be located;
          (B) publish under IC 5-3-1 in each county in which the carbon
          sequestration project is proposed to be located notice of the
          name and address of each library in which a copy of the
          application is placed as required by clause (A); and
          (C) provide notice to potentially affected parties under rules
          adopted by the commission for carbon sequestration projects;
          and
       (2) provide to the department proof of publication of notice under
       this subsection not more than thirty (30) days after the publication
       or delivery of the notice.
    (f) Not later than ninety (90) one hundred eighty (180) days after
receiving the proof of publication of notice under subsection (e), the
department shall notify the applicant in writing that:
       (1) the department has approved the application; or
HEA 1368 — Concur
                                 31
     (2) the department has denied the application.
   SECTION 62. IC 14-39-2-6.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 6.2. (a) Before issuing a
permit, the department shall consult with the department of
environmental management and determine whether the carbon
sequestration project will cause pollution or create a nuisance.
   (b) Before issuing a permit, the department shall make the
following findings or assess the following sources of information:
     (1) That the storage operator is in compliance with all
     applicable laws governing the storage facility.
     (2) That the storage operator shows that the storage facility
     is reasonably expected to retain the carbon dioxide stored in
     the storage facility.
     (3) That the storage operator shows that the carbon dioxide
     in the storage facility is stable by showing that either:
         (A) the stored carbon dioxide is essentially stationary; or
         (B) if the stored carbon migrates, the migration is unlikely
         to cross the boundaries of the storage facility.
     (4) That the storage operator has made a good faith effort to
     secure the consent of all individuals who own the reservoir's
     pore space.
     (5) That the storage operator has made a good faith effort to
     obtain the consent of all pore space owners located within the
     proposed storage facility.
     (6) That the storage operator has obtained the consent of the
     pore space owners of the pore space underlying at least
     seventy percent (70%) of the surface area above the proposed
     storage facility or amended proposed storage facility.
     (7) That all pore space owners that do not agree to integrate
     their interests to develop the pore space as a proposed storage
     facility for the underground storage of carbon dioxide are
     equitably compensated.
     (8) That a carbon sequestration project will not adversely
     affect the interests of the mineral owners or mineral lessees or
     the interests have been addressed in an arrangement entered
     into by the mineral owners or mineral lessees and the storage
     operator.
     (9) That the proposed storage facility will not adversely affect
     surface waters or aquifers.
     (10) That the proposed storage reservoir will remain solid and
     the substances making up the storage reservoir will not mix or
HEA 1368 — Concur
                               32
   interact with the stored carbon dioxide.
   (11) That the storage facility will neither endanger human
   health nor endanger the environment.
   (12) That the storage facility is in the public interest.
   (13) That the horizontal and vertical boundaries of the storage
   reservoir are defined. These boundaries shall include buffer
   areas to ensure that the storage facility is operated safely and
   as contemplated.
   (14) That the storage operator will establish monitoring
   facilities and protocols to assess the location and migration of
   carbon dioxide injected for storage and to ensure compliance
   with all permit, statutory, and administrative requirements.
   (15) The final area of review based on modeling, using data
   obtained during logging and testing of the well and the
   formation as required by the department.
   (16) Any relevant updates, based on data obtained during
   logging and testing of the well and the formation, to the
   information on the geologic structure and hydrogeologic
   properties of the proposed storage site and overlying
   formations, submitted to satisfy the requirements of the
   department.
   (17) Information on the compatibility of the carbon dioxide
   stream with fluids in each injection zone and minerals in both
   the injection and each confining zone, based on the results of
   the formation testing program, and with the materials used to
   construct the well.
   (18) The results of the formation testing program required by
   the department.
   (19) Final injection well construction procedures that meet the
   requirements of the department.
   (20) The status of corrective action on wells in the area of
   review.
   (21) All available logging and testing program data on the
   well required by the department.
   (22) A demonstration of a mechanical integrity test.
   (23) Any updates to the:
      (A) proposed area of review and corrective action plan;
      (B) testing and monitoring plan;
      (C) injection well plugging plan;
      (D) post-injection site care and site closure plan; or
      (E) emergency and remedial response plan;
   resulting from testing performed during the application
HEA 1368 — Concur
                                  33
        process.
        (24) That the proposed carbon sequestration project contains
        the minimum requirements for an effective program to
        prevent the underground injection of carbon from
        endangering drinking water sources as prescribed by the
        federal Safe Drinking Water Act (42 U.S.C. 300h(b)(1)).
        (25) Any other information the department determines should
        be reviewed.
      (c) The department may include in a permit all things necessary
to:
      (1) carry out the purposes of this chapter; and
      (2) protect and adjust the respective rights and obligations of
      individuals affected by a carbon sequestration project.
   SECTION 63. IC 14-39-2-7, AS AMENDED BY P.L.213-2025,
SECTION 138, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. (a) If the department
approves an application under section 6 of this chapter, the department
shall issue to the applicant a carbon sequestration project permit.
   (b) When the department issues a permit, it shall also issue a
certificate that contains the following information:
      (1) The date the permit was issued.
      (2) A description of the area containing the carbon
      sequestration project.
      (3) Any additional information the department deems
      appropriate.
   (c) The department shall file a copy of the certificate with the
county recorder in the county or counties in which the storage
facility is located.
   SECTION 64. IC 14-39-2-7.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7.1. (a) If a person wishes to
challenge a determination made by the department, the person
may request an informal hearing by the division of reclamation
prior to filing for a formal administrative hearing under IC 4-21.5.
   (b) If the challenging person requests to have an informal
hearing, the request must include the following:
      (1) The name, address, telephone number, and electronic mail
      address of the person requesting the informal hearing.
      (2) The department decision for which the person is seeking
      informal review.
      (3) The names of other persons who are subject to the
      determination made by the department and their addresses,
HEA 1368 — Concur
                                   34
      telephone numbers, and electronic mail addresses.
      (4) The reason for the person's objection to the determination
      made by the department.
      (5) Evidence presented by the person in support of the reasons
      the person believes the department made an improper
      determination.
   (c) Not later than thirty (30) days after receiving a request for
an informal hearing under this section, the department must
schedule an informal hearing and notify the requester and any
other person who is subject to the determination at issue of the
informal hearing date by first class mail paid for by the requester.
The date of the scheduled hearing must be at least thirty (30) days
after the date of the notice.
   (d) The department must post information regarding the date,
time, and place of the public hearing on the department's website.
   (e) An informal hearing under this section must follow the
public access requirements of IC 5-14-1.5.
   (f) A determination by the department under this section is
subject to review and appeal under IC 4-21.5.
   SECTION 65. IC 14-39-2-11, AS AMENDED BY P.L.25-2025,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) A mineral owner or mineral lessee
shall provide written notice to a storage operator at least thirty-one (31)
days prior to drilling a well if the mineral owner or mineral lessee
wishes to drill a well not more than:
      (1) three hundred thirty (330) feet from the surface location of a
      well pursuant to a UIC Class VI permit; or
      (2) five hundred (500) feet from the uppermost confining zone of
      a carbon sequestration facility within the boundary of the storage
      facility pursuant to a UIC Class VI permit.
Drilling permitted by this subsection must be conducted in cooperation
with a storage operator.
   (b) A well drilled under subsection (a) must be drilled in
compliance with the requirements of
      (1) the department to preserve the integrity of the storage facility.
      (2) a UIC Class VI permit; and
      (3) any other applicable regulations.
   SECTION 66. IC 14-39-2-11.5, AS AMENDED BY P.L.213-2025,
SECTION 142, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 11.5. (a) A person may not:
      (1) drill, deepen, or operate a nonproduction well drilled to
      investigate and obtain data on geological, structural, or
HEA 1368 — Concur
                                   35
      hydrogeological stratigraphic intervals for the suitability of
      underground formations for carbon sequestration; or
      (2) convert a well for oil and gas purposes (as defined by
      IC 14-8-2-317) for carbon dioxide investigations;
without first obtaining a permit to create and operate an
investigatory carbon dioxide well issued by the department under this
section.
    (b) A person issued a permit under this section shall do the
following:
      (1) Comply with the conditions of the permit to the satisfaction of
      the department;
      (2) Correct any adverse environmental impact that results from
      noncompliance with a permit.
      (3) Provide for the proper operation and maintenance of all:
          (A) facilities;
          (B) treatment systems; and
          (C) control and related appurtenances;
      that are installed or used by the person to comply with the permit
      conditions.
    (c) A permit issued under this section does not convey to the holder
a property right or an exclusive privilege.
    (d) An application for a permit under subsection (a) must include
the following:
      (1) The name, address, telephone number, and electronic mail
      address of the applicant.
      (2) The signature of the applicant or the applicant's designee. The
      applicant must be the operator identified in the permit application.
      (3) An identification of the plat of land or lease where the well is
      to be located, along with a description of the property boundaries,
      lease lines, and storage area tract boundary, including the acreage
      within the tract, as applicable.
      (4) The location of the proposed well as certified by a
      professional surveyor registered under IC 25-21.5.
      (5) The surface elevation of the proposed well and the method
      used for determining that elevation.
      (6) The depth of the proposed well.
      (7) Proof of a surface use agreement executed by the applicant
      and the surface owner, including an agreement specifying that in
      acting as authorized under a permit issued by the department
      under this section, the operator does not commit trespass with
      respect to the subsurface estate in any case in which the
      subsurface estate is separate from the surface estate.
HEA 1368 — Concur
                                    36
      (8) Any other information required by the department that is
      necessary to administer this section.
   (e) An applicant shall submit the following with an application for
a permit under this section:
      (1) For each well included in the application, a cash bond of ten
      dollars ($10) for each foot of well depth.
      (2) A permit fee of two hundred fifty dollars ($250) payable to the
      department.
The department shall deposit all amounts collected under this
subsection in the carbon sequestration project program administrative
fund established by section 10.5 of this chapter.
   (f) The department shall incorporate in a permit issued under this
section the terms, conditions, and covenants the department considers
necessary to protect the public interest.
   (g) Except as provided in subsection (h), the department shall issue
a permit under this section not later than fifteen (15) days after the
applicant:
      (1) demonstrates compliance with all relevant:
          (A) provisions of this article; and
          (B) rules adopted under this article;
      as determined by the department; and
      (2) submits a complete permit application under this section to the
      department;
unless the fifteen (15) day deadline prescribed by this subsection is
otherwise waived by the applicant.
   (h) The department may deny a permit under this section if the
applicant, or an officer, a partner, or a director of the applicant:
      (1) either:
          (A) is in violation of this article at the time of the application;
          or
          (B) would be in violation if the permit were issued; or
      (2) has previously demonstrated a pattern of willful violations of
      this article.
   (i) Except as provided in subsection (j), a permit issued by the
department under this section with respect to a particular well remains
in effect until any of the following occurs:
      (1) The well is plugged and abandoned.
      (2) The well is converted to another type of well.
      (3) The permit is revoked by the department under subsection (k).
   (j) A permit issued by the department under this section expires one
(1) year after the date of issuance if the drilling of a well for which the
permit has been issued has not commenced within that time.
HEA 1368 — Concur
                                  37
    (k) The department may revoke a permit issued under this section.
    (l) Subject to subsection (m), a person holding a permit under this
section shall plug and abandon a well that is no longer in operation
under a permit, unless the well is converted to a carbon dioxide
injection or monitoring well under a UIC Class Vl permit.
    (m) A person holding a permit under this section may defer
plugging and abandoning a well while an application is pending to
convert the well into a UIC Class VI permit carbon dioxide injection or
monitoring well, as long as the well is temporarily capped and
maintained in the manner prescribed by the department in the permit.
    (n) After a well is plugged and abandoned or transferred, the
applicant who paid the cash bond under subsection (e) may request a
total or partial bond release from the department. The director of the
division of reclamation shall:
       (1) release the bond as requested; or
       (2) deny the bond release.
    (o) A determination by the department under this section is subject
to review and appeal under IC 4-21.5.
    (p) The commission may adopt rules under IC 4-22-2 to implement
this section.
    SECTION 67. IC 14-39-2-12.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.1. (a) Except during
stimulation, a storage operator must ensure that injection pressure
does not exceed ninety percent (90%) of the fracture pressure of an
injection zone to ensure that the injection does not initiate new
fractures or propagate existing fractures in the injection zone.
    (b) Injection pressure may not initiate fractures in a confining
zone or cause the movement of injection or formation fluids that
endangers an underground source of drinking water.
    (c) A stimulation program must be approved by the department
as part of the permit application and incorporated into the permit.
    (d) A storage operator shall meet injection well operating
requirements established by the department.
    (e) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
    SECTION 68. IC 14-39-2-12.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.2. (a) A UIC Class VI
permit may be modified at the request of an interested person in
writing or upon the directive of the department. The request must
contain each fact or reason supporting the request and any other
HEA 1368 — Concur
                                 38
criteria established by the department.
   (b) A UIC Class VI permit may be suspended, revoked and
reissued, or terminated at the request of an interested person in
writing or upon the directive of the department. The request must
contain each fact or reason supporting the request.
   SECTION 69. IC 14-39-2-12.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.3. (a) The department shall
submit a memorandum of agreement that includes all of the
information required under 40 CFR 145.25 to the Regional
Administrator for the United States Environmental Protection
Agency.
   (b)The department shall prepare quarterly and annual reports
as described in 40 CFR 144.8.
   (c) The reports shall be submitted to the Regional Administrator
for the United States Environmental Protection Agency and meet
the requirements of federal regulations adopted by the department.
   (d) Quarterly reports are due:
     (1) May 31;
     (2) August 31;
     (3) November 30; and
     (4) February 28;
following the quarter.
   (e) Annual reports are due not more than sixty (60) days after
the end of the calendar year.
   (f) A storage operator shall submit the reports required under
40 CFR 146.91 to the department within the time frames described
in 40 CFR 146.91.
   SECTION 70. IC 14-39-2-12.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.4. The department shall
provide in writing to a state, tribe, or territory included in an area
of review for a project a map showing the injection well for which
a permit is sought and the applicable areas of review.
   SECTION 71. IC 14-39-2-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.5. The department may
require, by written notice on a well by well basis, a storage
operator to:
     (1) establish and maintain records;
     (2) make reports;
     (3) conduct monitoring; and
HEA 1368 — Concur
                                39
     (4) provide any other information required by the
     department;
to determine whether the storage operator acted, or is acting, in
compliance with the Safe Drinking Water Act or other
requirements of the department.
   SECTION 72. IC 14-39-2-12.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.6. (a) A storage operator
that is injecting carbon dioxide for the primary purpose of long
term storage into an oil and gas reservoir must apply for and
obtain a Class VI geologic sequestration permit when there is an
increased risk to underground sources of drinking water compared
to Class II operations.
   (b) In determining if there is an increased risk to underground
sources of drinking water, a storage operator must consider the
following factors:
     (1) Increase in reservoir pressure within the injection zone.
     (2) Increase in carbon dioxide injection rates.
     (3) Decrease in reservoir production rates.
     (4) Distance between the injection zone and underground
     sources of drinking water.
     (5) Suitability of the Class II area of review delineation.
     (6) Quality of abandoned well plugs within the area of review.
     (7) A storage operator's plan for recovery of carbon dioxide
     at the cessation of injection.
     (8) The source and properties of injected carbon dioxide.
     (9) Any additional site specific factors as determined by the
     department.
   SECTION 73. IC 14-39-2-12.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.7. (a) The department shall
determine when there is an increased risk to underground sources
of drinking water and a UIC Class VI permit is required, rather
than a Class II permit.
   (b) To make this determination, the department must consider
the following factors:
     (1) Increase in reservoir pressure within an injection zone.
     (2) Increase in carbon dioxide injection rates.
     (3) Decrease in reservoir production rates.
     (4) Distance between an injection zone and underground
     sources of drinking water.
     (5) Suitability of the Class II area of review delineation.
HEA 1368 — Concur
                                 40
       (6) Quality of abandoned well plugs within the area of review.
       (7) A storage operator's plan for recovery of carbon dioxide
       at the cessation of injection.
       (8) The source and properties of injected carbon dioxide.
       (9) Any other site specific factors required by the department.
    SECTION 74. IC 14-39-2-12.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 12.8. (a) Compliance with a
UIC Class VI permit during the term of the UIC Class VI permit
constitutes compliance, for purposes of enforcement.
    (b) The department may:
       (1) modify;
       (2) revoke;
       (3) reissue; or
       (4) terminate;
a UIC Class VI permit during its term for a violation of 40 CFR
144.39 or 40 CFR 144.40.
    (c) A UIC Class VI permit holder may not transfer a permit to
another person except after notice to the department. The
department may require:
       (1) modification; or
       (2) revocation and reissuance;
of a UIC Class VI permit to change the name of the permittee and
incorporate other requirements required by this chapter or federal
law.
    (d) The issuance of a UIC Class VI permit does not convey any
property rights of any sort, or any exclusive privilege.
    (e) The issuance of a UIC Class VI permit does not authorize
any injury to persons or property or invasion of other private
rights, or any infringement of state or local law or regulations.
    (f) The term of a UIC Class VI permit is during the operating
life of the storage facility and the post-injection site care period.
    (g) The department shall incorporate into a UIC Class VI
permit conditions established by the department either expressly
or by reference.
    (h) The person issued a UIC Class VI permit by the department
shall comply with federal regulations adopted by the department.
The department may modify, revoke, reissue, or terminate a
person's UIC Class VI permit that violates this article or federal
regulations adopted by the department.
    (i) The department shall adopt rules that mirror applicable
federal regulations to implement this section.
HEA 1368 — Concur
                                   41
    SECTION 75. IC 14-39-2-13, AS AMENDED BY P.L.213-2025,
SECTION 143, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 13. (a) A certificate of project
completion shall be issued upon application by the storage operator if
the department finds that the storage operator does the following:
      (1) The storage operator is in compliance with all applicable laws
      governing the storage facility.
      (2) The storage operator shows that the storage facility is
      reasonably expected to retain the carbon dioxide stored in the
      storage facility.
      (3) The storage operator shows that the carbon dioxide in the
      storage facility is stable by showing that either:
         (A) the stored carbon dioxide is essentially stationary; or
         (B) if the stored carbon migrates, the migration is unlikely to
         cross the boundaries of the storage facility.
      (4) The storage operator shows that all wells, equipment, and
      facilities used after the closure period are in good condition and
      retain mechanical integrity.
      (5) The storage operator shows that injection wells have been
      plugged.
      (6) The storage operator shows that equipment and facilities, not
      including fixed structures and long term monitoring equipment
      and wells, have been removed.
      (7) The storage operator proves that the reclamation work
      required by the department where the project ceases to inject
      carbon dioxide is completed.
      (8) The following with respect to site closure:
         (A) The storage operator has provided a notice of intent for
         site closure to the United States Environmental Protection
         Agency.
         (B) The United States Environmental Protection Agency has
         authorized site closure.
         (C) The storage operator has provided:
            (i) the site closure report required under 40 CFR 146.93(f)
            (as in effect January 1, 2022) to the United States
            Environmental Protection Agency; or
            (ii) a comparable report to the state regulatory body if the
            state assumes primacy for UIC Class VI permitting.
    (b) The department shall issue a certificate of project completion not
later than one hundred eighty (180) days after receiving an application
from the storage operator. If the department determines that the
application for a certificate of project completion is incomplete,
HEA 1368 — Concur
                                   42
inaccurate, or both, the department shall return the application to the
storage operator.
   (c) If the department returns the application to the storage operator
under subsection (b), the department shall inform the storage operator,
in writing, of the deficiencies of the submitted application and inform
the storage operator of the right to file a corrected application with the
department.
   (d) Once a certificate of completion is issued, the following apply:
      (1) Except as provided in subsection (e), the state will assume
      ownership of and responsibility for the storage facility.
      (2) The state will assume responsibility for all regulatory
      requirements associated with the storage facility, and the storage
      operator and the owner of the storage facility are released from
      responsibility for all regulatory requirements associated with the
      storage facility.
      (3) The state will assume any potential liability associated with
      the storage facility.
      (4) The department may, at a reasonable time, enter property on
      which a carbon dioxide injection well or monitoring well for the
      storage facility is located to inspect and maintain the well or
      storage facility. Except in the event of an emergency, the
      department shall provide advance notice to the owner of the
      surface property of the date the department intends to enter the
      property. The notice required by this subdivision must be
      provided at least five (5) business days before the department
      intends to enter the property. The notice must be delivered by:
          (A) United States mail;
          (B) private courier;
          (C) personal delivery; or
          (D) any other manner agreed to in writing between the
          department and the owner of the surface property.
   (e) The state may:
      (1) assume ownership of and responsibility for; or
      (2) accept transfer of;
a storage facility with respect to which an interest in or rights to
property are conveyed by a lease agreement only if the lessor and
lessee agree in the lease agreement to transfer the storage facility to the
state. In a transfer described in this subsection, the state assumes
ownership of and responsibility for the storage facility only and does
not assume any other ownership interest, responsibility, or liability
under any other provisions of the lease agreement.
   (f) Unless there is documentation to the contrary, the storage
HEA 1368 — Concur
                                   43
operator has title to the carbon dioxide injected into and stored in a
storage facility, and the storage operator holds title until the department
issues a certificate of completion.
    (g) A storage operator shall notify the department in writing at
least one hundred twenty (120) days before site closure. At this
time, if changes were made to the original post-injection site care
and site closure plan, the storage operator must provide the revised
plan to the department.
    (h) A storage operator shall monitor the site following injection
ceasing to show the position of the carbon dioxide plume and
pressure front and demonstrate that underground sources of
drinking water are not endangered.
    (i) Following the cessation of injection, the storage operator
shall continue to conduct monitoring as specified in the department
approved post-injection site care and site closure plan for at least
fifty (50) years, unless an alternative time frame is approved by the
department as described in subsection (j).
    (j) If a storage operator can demonstrate to the satisfaction of
the department that the carbon sequestration project no longer
endangers underground sources of drinking water before the
minimum of fifty (50) years required under subsection (i) has
elapsed, the department may approve an alternative time frame for
the post-injection site care and site closure plan to reduce the
frequency of monitoring or to authorize site closure before the end
of the period, when there is substantial evidence that the carbon
sequestration project no longer poses a risk of endangering
underground sources of drinking water. An alternative time frame
approved by the department must meet the requirements
established in 40 CFR 146.93. The monitoring must continue until
the:
       (1) carbon sequestration project no longer endangers
       underground sources of drinking water; and
       (2) department approves a demonstration submitted by the
       owner and operator of the carbon dioxide injection well in the
       manner prescribed by 40 CFR 146.93.
    (k) Before authorization for site closure, the storage operator
must submit to the department for review and approval a
demonstration, based on monitoring and other site specific data,
that no additional monitoring is needed to ensure that the carbon
sequestration project does not endanger underground sources of
drinking water.
    (l) If the storage operator cannot demonstrate that the carbon
HEA 1368 — Concur
                                 44
sequestration project does not endanger underground sources of
drinking water at the end of the fifty (50) year period, or the
approved alternative time frame, or the department does not
approve the demonstration, the storage operator must submit to
the department a plan to continue post-injection site care until a
demonstration can be made and approved by the department.
    (m) After the department authorizes site closure, the storage
operator shall plug all monitoring wells to ensure there is not
movement of injection or formation fluids that endanger an
underground source of drinking water.
    (n) Not more than ninety (90) days before the site closure, the
storage operator shall submit a site closure report to the
department that is retained by the department for at least ten (10)
years.
    (o) Each storage operator shall record a notation on the deed to
the facility property or any other document that is normally
examined during a title search that will, in perpetuity, provide any
potential purchaser of the property the following information:
      (1) The fact that the land has been used to sequester carbon
      dioxide.
      (2) The name of the state agency, local authority, or tribe with
      which the survey plat was filed, as well as the address of the
      Environmental Protection Agency regional office to which it
      was submitted.
      (3) The volume of fluid injected, the injection zone or zones
      into which it was injected, and the period over which injection
      occurred.
    (p) The storage operator shall retain, for at least ten (10) years
following site closure, records collected during the post-injection
site care period. The storage operator shall deliver the records to
the department at the conclusion of the retention period, and the
department must retain the records at a location designated by the
department for that purpose.
    (q) A storage operator shall comply with any other
post-injection site care and site closure requirements established
by the department.
    SECTION 76. IC 14-39-2-14.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 14.5. (a) The following
activities are prohibited:
      (1) Injection without a UIC Class VI permit.
      (2) Movement of fluid into underground sources of drinking
HEA 1368 — Concur
                                  45
     water.
     (3) Experimental Class VI wells for carbon sequestration.
     (4) Any action that endangers underground sources of
     drinking water.
     (5) Any additional activity prohibited under:
         (A) the federal Safe Drinking Water Act (42 U.S.C. 300f et
         seq.); or
         (B) 40 CFR 142, 40 CFR 144, 40 CFR 146, and 40 CFR
         148.
   (b) Other violations of this article include the following:
     (1) Making clerical errors or mistakes in reporting
     requirements.
     (2) Failure to meet basic operation and facility management
     requirements.
     (3) Failure to meet maintenance requirements that may cause
     damage to property.
     (4) Creating harmful environmental conditions or hazardous
     conditions.
     (5) Taking an action that likely results in environmental
     damage.
     (6) Taking an action that could result in harm to persons or
     death.
   (c) Mitigating factors that may affect a violation received by a
storage operator under this article are as follows:
     (1) Whether the storage operator made a good faith effort to
     abate a violation.
     (2) The ability of the storage operator to abate the violation.
     (3) The cost to the department to enforce the violation.
     (4) Whether there was an economic benefit to the storage
     operator for committing the violation.
     (5) Any other factor that may warrant a reduction of a civil
     penalty assessed for a violation.
   SECTION 77. IC 14-39-2-15, AS AMENDED BY P.L.213-2025,
SECTION 144, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 15. (a) A person that violates a
requirement under this article is subject to a civil penalty under this
section.
   (b) Except as provided in subsection (d), a person that violates a
requirement under this article shall pay to the department a civil
penalty as follows:
     (1) One thousand dollars ($1,000) Two thousand five hundred
     dollars ($2,500) each day for a first violation.
HEA 1368 — Concur
                                   46
       (2) Five thousand dollars ($5,000) each day for a second
       violation.
       (3) Ten thousand dollars ($10,000) each day for a third and each
       subsequent violation.
    (c) If a person issued a civil penalty under subsection (b) for a
violation of a requirement under this article does not remedy the
violation in the time prescribed by the department, the person is subject
to a cessation order issued by the department. A person that is issued
a cessation order under this section must pay a civil penalty of seven
hundred fifty dollars ($750) per day, for not more than thirty (30) days,
for each day the violation remains unremedied.
    (d) If a person does not obtain from the department a certificate or
permit required under this article:
       (1) the person shall pay to the department a civil penalty of ten
       thousand dollars ($10,000); and
       (2) the department shall issue to the person a cessation order in
       accordance with subsection (c).
    (e) A person who knowingly and intentionally violates this
article commits a Class A misdemeanor. Each violation under this
subsection:
       (1) is assessable individually; and
       (2) will result in an assessed penalty of at least five thousand
       dollars ($5,000) each day based on the:
          (A) severity of the violation;
          (B) risk to:
             (i) the environment;
             (ii) individuals; or
             (iii) property; and
          (C) actions of the violator to abate the violation.
    (f) The department shall provide for public participation in the
enforcement process for a violation under this article.
    (e) (g) A civil penalty or cessation order assessed or issued under
this section is subject to review and appeal under IC 4-21.5.
    (f) (h) The department shall deposit civil penalties collected under
this chapter in the carbon dioxide storage facility trust fund established
by section 10 of this chapter.
    SECTION 78. IC 14-39-2-15.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 15.5. If any part of this article
or 312 IAC 30 is found to be invalid, the remainder of this article
or 312 IAC 30, as applicable, is upheld.
    SECTION 79. IC 35-52-14-52 IS ADDED TO THE INDIANA
HEA 1368 — Concur
                              47
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 52. IC 14-39-2-15 defines a crime
concerning carbon sequestration.
   SECTION 80. An emergency is declared for this act.
HEA 1368 — Concur
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
HEA 1368 — Concur