Indiana sets new permit requirements for carbon sequestration projects

Indiana's Senate Bill 457, introduced on January 28, 2025, aims to regulate carbon sequestration projects within the state, marking a significant step towards addressing climate change and promoting sustainable practices. The bill establishes a framework requiring storage operators to obtain specific permits before initiating carbon sequestration activities, thereby ensuring that projects meet safety and environmental standards.

Key provisions of the bill mandate that any operator wishing to conduct carbon sequestration must secure a UIC Class VI permit and a valid permit from the Indiana Department of Environmental Management. This dual-permit requirement is designed to enhance oversight and accountability in the burgeoning field of carbon capture and storage. Notably, if the project is owned by a different entity than the storage operator, the operator is still responsible for obtaining the necessary permits, which emphasizes the importance of regulatory compliance across all stakeholders involved.

The application process for a carbon sequestration permit includes a $1,000 filing fee, which is calculated based on the projected amount of carbon dioxide to be injected over the first ten years. This fee will contribute to the carbon sequestration project program administrative fund, supporting the management and oversight of these initiatives. Applicants must also demonstrate their financial, managerial, and technical capabilities to construct and maintain the project, ensuring that only qualified entities engage in this critical work.

While the bill has garnered support for its proactive approach to environmental protection, it has also sparked debates regarding the potential economic implications for businesses involved in carbon sequestration. Critics argue that the regulatory burden may deter investment in this emerging sector, while proponents assert that stringent regulations are necessary to safeguard public health and the environment.

As Indiana positions itself as a player in the carbon capture landscape, the implications of Senate Bill 457 could extend beyond state lines, influencing national discussions on climate policy and sustainable energy practices. The bill's passage could pave the way for increased investment in green technologies and contribute to the state's overall climate goals, fostering a more sustainable future for Indiana and its residents.