Indiana establishes permit requirements for carbon sequestration projects

Indiana lawmakers have introduced House Bill 1001, a pivotal piece of legislation aimed at regulating carbon dioxide sequestration projects in the state. Unveiled on April 25, 2025, the bill establishes a framework for the injection and underground storage of carbon dioxide, a critical step in addressing climate change and promoting sustainable energy practices.

At the heart of House Bill 1001 is the requirement for operators to secure a UIC Class VI permit before commencing any carbon sequestration activities. This regulatory measure ensures that only qualified entities can manage these projects, which are essential for reducing greenhouse gas emissions. The bill mandates that operators demonstrate their financial and technical capabilities, alongside a commitment to adhere to safety regulations, thereby safeguarding both the environment and public health.

Notably, the legislation stipulates that any carbon sequestration project must be permitted, with a filing fee calculated based on the volume of carbon dioxide intended for injection. This fee structure not only generates revenue for the state but also incentivizes responsible project planning and execution. Furthermore, the bill allows for the transfer of permits between operators, facilitating flexibility within the industry.

While the bill has garnered support from environmental advocates who see it as a necessary step toward combating climate change, it has also sparked debates among stakeholders. Critics express concerns about the potential impacts on mineral rights and the adequacy of safety measures. The legislation includes provisions to address these issues, requiring operators to ensure that mineral owners are not adversely affected by the projects.

As Indiana positions itself as a player in the carbon capture and storage arena, House Bill 1001 could have significant economic and environmental implications. Experts suggest that successful implementation of the bill could attract investment in clean energy technologies, bolster job creation, and enhance the state's reputation as a leader in sustainable practices.

With the bill now under consideration, its passage could mark a transformative moment for Indiana's energy landscape, paving the way for innovative solutions to one of the most pressing challenges of our time. As discussions continue, stakeholders are keenly watching how this legislation will shape the future of carbon sequestration in the Hoosier State.