IndianaIndiana pipeline applicants would file risk studies and injection estimates
Companies seeking Indiana carbon dioxide pipeline approval would submit risk studies and injection estimates, while storage pilot operators would pay a fee for carbon dioxide injected underground.
What it does
Companies seeking state approval for a carbon dioxide pipeline would submit a risk study with modeled scenarios and estimate how much carbon dioxide they plan to inject underground.
Pilot operators would pay eight cents per estimated ton of carbon dioxide injected underground, then settle the difference each year. State staff would inspect the projects, and fee money could only support pilot oversight.
State officials could make owners share underground space for carbon dioxide storage after the operator applies for a federal permit and meets two 70% consent tests. Owners who refuse must be paid fairly; the order starts after a permit is issued.
Before a carbon dioxide storage pilot could force owners to give up underground rights, its operator would need consent covering two separate 60% shares: space held by county residents and all space. Early exploration work is exempt.
If a carbon dioxide pipeline company takes part of a property, the owner could show that perceived risks from the storage pilot lower the value of the land left behind. That evidence would have to be considered when setting payment.
Argument forRisk studies could help state reviewers and nearby residents understand possible pipeline dangers before a project moves ahead.
Argument againstEven with the consent rules, a state order could make some owners share underground space against their wishes after a permit is issued.
More detail
Pipeline applicants would include a risk study and an underground injection estimate in their applications. This applies to companies seeking approval to build, run, and maintain carbon dioxide transmission pipelines in Indiana. The risk study must include modeled scenarios. The injection estimate must cover the period of the requested certificate. These application rules would take effect July 1, 2026.
Storage pilot operators would pay per-ton fees, and the state would inspect their projects. This covers operators of carbon dioxide storage pilot projects. Operators would pay any shortfall, and the state would refund any overpayment. Fee money could only be used to monitor or manage approved pilot projects. Operators would pay yearly and compare the previous year's estimate with the amount actually injected. Inspectors would check projects at reasonable times as needed for safety.
Indiana's natural resources department could order owners to share underground storage space. This covers owners who do not agree to share space in a proposed carbon dioxide storage area. The operator must file a complete federal permit application and try in good faith to get every owner's consent. Owners of at least 70% of the space held by county residents and 70% of all the space must consent. Owners who do not agree must be paid fairly. An order would take effect 15 days after the federal permit or amended permit is issued.
A pilot operator would need two levels of owner consent before forcing the sale of underground storage rights. This applies when someone seeks to take underground rights for the carbon dioxide storage pilot project. The operator must get consent without forcing a sale from owners of at least 60% of the underground area held by county residents and 60% of the full area. Both shares are measured using the land above the underground area. The consent test exempts proceedings limited to underground exploration and related access. This rule would take effect July 1, 2026.
People setting payment would have to consider proof that perceived hazard risk lowers the value of land left behind. This covers owners whose property is taken under the carbon dioxide pipeline chapter and who keep some land. The owner could offer proof that the perceived risk of a hazard tied to the storage pilot lowers the remaining property's value now. This rule would take effect July 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jan 8First reading: referred to Committee on UtilitiesLatest
- Jan 8Authored by Senators Deery, NiemeyerIntroduced
Environment & EnergyPublic Safety