SB 7

                                              *SB0007.2*
                                                                    Reprinted
                                                             January 29, 2026
              SENATE BILL No. 7
                   _____
 DIGEST OF SB 7 (Updated January 28, 2026 2:14 pm - DI 153)
Citations Affected: IC 14-39; IC 36-7.
Synopsis: Carbon sequestration. Provides that a storage operator may
not operate a carbon sequestration project that transports or stores
carbon dioxide outside the county where the carbon dioxide is
generated unless the project is approved by the appropriate county
legislative body or plan commission. Exempts certain projects from the
provisions of the bill. Makes conforming changes.
Effective: July 1, 2026.
                   Niemeyer, Deery
December 8, 2025, read first time and referred to Committee on Utilities.
January 14, 2026, reassigned to Committee on Environmental Affairs pursuant to Rule
68(b).
January 27, 2026, reported favorably — Do Pass.
January 28, 2026, read second time, amended, ordered engrossed.
SB 7—LS 6088/DI 153
                                                                                    Reprinted
                                                                             January 29, 2026
            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.
                      SENATE BILL No. 7
    A BILL FOR AN ACT to amend the Indiana Code concerning
 natural and cultural resources.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 14-39-2-1, AS ADDED BY P.L.163-2022,
2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 1. (a) Except as otherwise provided in this
4 chapter, this chapter does not apply to extractable mineral resources.
5     (b) Except as otherwise provided in this chapter, this chapter does
6 not preclude the exercise of rights provided by IC 14-37-9.
7     (c) Except as otherwise provided in this chapter, this chapter applies
8 to the underground storage of carbon dioxide.
9     (d) The rights and requirements of this chapter:
10(1) are subordinate to the rights pertaining to oil, gas, and coal
11resources; and
12(2) may not adversely affect oil, gas, and coal resources, except
13as is strictly necessary to construct and maintain a carbon
14sequestration project that will provide for the permanent storage
15of carbon dioxide.
16     (e) The amendments made to this chapter by SEA 7-2026 do not
17 apply to a carbon sequestration project, including the
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                                    2
1 transportation of carbon dioxide associated with the project, that
2 has been authorized to proceed under a UIC Class VI permit issued
3 prior to July 1, 2026.
4     SECTION 2. IC 14-39-2-2, AS AMENDED BY P.L.25-2025,
5 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2026]: Sec. 2. (a) The following definitions apply throughout
7 this chapter.
8     (b) "Carbon dioxide" has the meaning set forth in IC 14-39-1-1.
9     (c) "Carbon dioxide injection well" refers to a well that is used to
10 inject carbon dioxide into a reservoir for carbon sequestration pursuant
11 to a UIC Class VI permit.
12     (d) "Carbon dioxide plume" means the extent of an underground
13 three-dimensional injected carbon dioxide stream.
14     (e) "Carbon sequestration" means the underground storage of carbon
15 dioxide in a reservoir.
16     (f) "Carbon sequestration project" means any project that involves
17 the underground storage of carbon dioxide in a reservoir pursuant to at
18 least one (1) UIC Class VI permit.
19     (g) "Legislative body" means the following:
20(1) The board of county commissioners, for a county not
21subject to IC 36-2-3.5 or IC 36-3-1.
22(2) The county council, for a county subject to IC 36-2-3.5.
23(3) The city-county council, for a consolidated city or county
24having a consolidated city.
25     (g) (h) "Mineral lessee" means a lessee identified by the records of
26 the recorder of deeds for each county containing a portion of the
27 proposed reservoir who holds an interest in minerals on real property
28 that are located above, below, or within the proposed reservoir that has
29 been severed from the surface estate by:
30(1) grant;
31(2) exception;
32(3) reservation;
33(4) lease; or
34(5) any other means.
35     (h) (i) "Mineral owner" means an owner identified by the records of
36 the recorder of deeds for each county containing a portion of the
37 proposed reservoir who holds an interest in minerals on real property
38 that are located above, below, or within the proposed reservoir that has
39 been severed from the surface estate by:
40(1) grant;
41(2) exception;
42(3) reservation;
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                                     3
1(4) lease; or
2(5) any other means.
3    (i) (j) "Pore space" means subsurface cavities or voids that can be
4 used as a storage space for carbon dioxide.
5    (j) (k) "Pore space owner" means:
6(1) a person;
7(2) a trust;
8(3) a corporation; or
9(4) another entity;
10 that has title to, a right to, or an interest in pore space.
11    (k) (l) "Reservoir" means a subsurface:
12(1) sedimentary stratum;
13(2) formation;
14(3) aquifer;
15(4) cavity; or
16(5) void;
17 that is naturally or artificially created for the use of, or is capable of
18 being made suitable for, injecting and storing carbon dioxide.
19    (l) (m) "Storage facility" means the subsurface area consisting of the
20 extent of a carbon dioxide plume which is required to be delineated on
21 an approved UIC Class VI permit or an amendment to a UIC Class VI
22 permit of a storage operator.
23    (m) (n) "Storage operator" means:
24(1) a person;
25(2) a trust;
26(3) a corporation; or
27(4) another entity;
28 that operates a carbon sequestration project.
29    (n) (o) "Surface or subsurface property interest owner" means a
30 property interest owner identified by the records of the recorder of
31 deeds for each county containing a portion of the proposed storage
32 facility who holds a fee simple interest or other freehold interest in the
33 surface or subsurface of the property, which may include mineral
34 rights. The term does not include the owner of a right-of-way, an
35 easement, or a leasehold.
36    (o) (p) "UIC Class VI permit" means a permit issued under the
37 federal Safe Drinking Water Act's Underground Injection Control
38 program that allows:
39(1) a person;
40(2) a trust;
41(3) a corporation; or
42(4) another entity;
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                                      4
1 to construct or operate a carbon dioxide injection well.
2     (p) (q) "Underground storage of carbon dioxide" means the injection
3 and storage of carbon dioxide into underground strata and formations
4 pursuant to at least one (1) UIC Class VI permit.
5     SECTION 3. IC 14-39-2-5, AS AMENDED BY P.L.213-2025,
6 SECTION 136, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2026]: Sec. 5. (a) Carbon sequestration projects
8 are authorized in Indiana for the purposes of:
9(1) injecting carbon dioxide into the pore space of an underground
10storage facility through at least one (1) carbon dioxide injection
11well pursuant to a UIC Class VI permit; and
12(2) employing the underground storage of carbon dioxide.
13     (b) A storage operator may not operate a carbon sequestration
14 project in Indiana without:
15(1) a UIC Class VI permit; and
16(2) a valid permit issued by the department; and
17(3) if applicable, the proper approval described in section 5.5
18of this chapter.
19     (c) If a carbon sequestration project is owned by an entity other than
20 the storage operator, the storage operator shall be responsible for
21 obtaining a permit for a carbon sequestration project under subsection
22 (b). A permit for a carbon sequestration project may be transferred or
23 assigned from one (1) storage operator to another storage operator.
24     (d) An individual may apply to the department for a permit for a
25 carbon sequestration project in a form and manner prescribed by the
26 department.
27     (e) An application under subsection (d) must include the following:
28(1) A filing fee equal to the product of:
29(A) the given amount of metric tons of carbon dioxide
30proposed to be injected into the storage facility during the first
31ten (10) years of the permit for the carbon sequestration
32project; multiplied by
33(B) one cent ($0.01).
34The filing fee amount determined under this subdivision shall be
35collected by the department and deposited in the carbon
36sequestration project program administrative fund established by
37section 10.5 of this chapter.
38(2) The signature of the applicant.
39(3) A statement verifying that the information submitted is true,
40accurate, and complete to the best of applicant's knowledge.
41(4) Information illustrating that the applicant has the financial,
42managerial, and technical ability to construct, operate, and
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                                     5
1maintain a carbon sequestration project.
2(5) Information illustrating that the applicant or the contractors or
3subcontractors of the applicant have the requisite expertise in
4constructing, operating, and maintaining a carbon sequestration
5project.
6(6) Documentation to the department describing the scope of the
7proposed carbon sequestration project.
8(7) A statement describing how the applicant will construct,
9operate, and maintain the proposed carbon sequestration project
10in accordance with applicable local, state, and federal law,
11including federal and state safety regulations and rules governing
12the construction, operation, and maintenance of the carbon
13sequestration project, and related facilities and equipment, to
14ensure the safety of the carbon sequestration project employees
15and the public.
16(8) A statement that the interests of a mineral lessee or mineral
17owner will not be adversely affected. If a mineral owner or
18mineral lessee is adversely affected, the adversely affected
19mineral owner or mineral lessee and the applicant may enter into
20an agreement under section 4 of this chapter.
21(9) A certified copy of:
22(A) the approval of the plan commission under section
235.5(1) of this chapter; or
24(B) the ordinance adopted by the legislative body under
25section 5.5(2) of this chapter.
26    (f) During the first ten (10) years of the permit for a carbon
27 sequestration project, if the carbon sequestration project injects more
28 metric tons of carbon dioxide into the storage facility than was
29 proposed under the original application under subsection (e), the
30 storage operator shall pay the filing fee under subsection (e) for the
31 additional metric tons of carbon dioxide injected into the storage
32 facility during the first ten (10) years of the permit for the carbon
33 sequestration project.
34    (g) A fee paid under this section is not refundable by the
35 department.
36    SECTION 4. IC 14-39-2-5.5 IS ADDED TO THE INDIANA CODE
37 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
38 1, 2026]: Sec. 5.5. A storage operator may not operate a carbon
39 sequestration project that transports or stores carbon dioxide
40 outside the county where the carbon dioxide is generated unless the
41 project is approved in a public meeting as follows:
42(1) If the carbon sequestration project is located in an area
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                                    6
1      that is subject to the jurisdiction of an area plan commission
2      under IC 36-7-4, the carbon sequestration project must be
3      approved by the area plan commission. An area plan
4      commission may not delegate the authority of the area plan
5      commission to approve a carbon sequestration project to an
6      administrator, hearing officer, committee, or staff.
7      (2) If the carbon sequestration project is located in an area
8      that is not subject to the jurisdiction of an area plan
9      commission under IC 36-7-4, the carbon sequestration project
10      must be approved by an ordinance adopted by the legislative
11      body.
12    SECTION 5. IC 36-7-4-1016, AS AMENDED BY P.L.130-2014,
13 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2026]: Sec. 1016. (a) Final decisions of the board of zoning
15 appeals under:
16      (1) the 900 series of this chapter (administrative appeals,
17      exceptions, uses, and variances); or
18      (2) section 1015 of this chapter (appeals of commitment
19      modifications or terminations);
20 are considered zoning decisions for purposes of this chapter and are
21 subject to judicial review in accordance with the 1600 series of this
22 chapter.
23    (b) The following decisions of the plan commission are considered
24 zoning decisions for purposes of this chapter and are subject to judicial
25 review in the same manner as that provided for the appeal of a final
26 decision of the board of zoning appeals under subsection (a):
27      (1) A final decision under the 700 series of this chapter
28      (subdivision control).
29      (2) A final decision under section 1015 of this chapter (appeal of
30      a commitment modification or termination).
31      (3) A final decision under the 1400 series of this chapter
32      (development plans).
33      (4) A final decision under the 1500 series of this chapter (planned
34      unit development), when authority to make a final decision is
35      delegated to the plan commission by the legislative body under
36      section 1511 of this chapter.
37    (c) Notwithstanding subsection (b)(2), decisions of a legislative
38 body under section 1015(b)(6) or 1015(b)(10) of this chapter are not
39 considered zoning decisions for purposes of this chapter and are not
40 subject to judicial review in accordance with the 1600 series of this
41 chapter.
42    (d) Final decisions of preservation commissions under IC 36-7-11,
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                                    7
1 IC 36-7-11.1, IC 36-7-11.2, or IC 36-7-11.3 (certificates of
2 appropriateness) are considered zoning decisions for purposes of this
3 chapter and are subject to judicial review in the same manner as that
4 provided for the appeal of a final decision of the board of zoning
5 appeals under subsection (a).
6    (e) Final decisions of zoning administrators under IC 14-28-4-18
7 (improvement location permits within flood plain areas) are considered
8 zoning decisions for purposes of this chapter and are subject to judicial
9 review in the same manner as that provided for the appeal of a final
10 decision of the board of zoning appeals under subsection (a).
11    (f) Final decisions of an area plan commission under
12 IC 14-39-2-5.5(1) concerning carbon sequestration projects are
13 considered zoning decisions for purposes of this chapter and are
14 subject to judicial review in the same manner as that provided for
15 the appeal of a final decision of the board of zoning appeals under
16 subsection (a).
17    (f) (g) The following actions are legislative acts and are not
18 considered zoning decisions for purposes of this chapter:
19(1) Adopting or approving a comprehensive plan under the 500
20series of this chapter.
21(2) Certifying with or without a recommendation a proposal under
22the 600 series of this chapter.
23(3) Adopting, rejecting, or amending a zoning ordinance under
24the 600 series of this chapter.
25(4) Adopting, rejecting, or amending an impact fee ordinance
26under the 1300 series of this chapter.
27(5) Designating a zoning district where a development plan is
28required under the 1400 series of this chapter.
29(6) Adopting, rejecting, or amending a PUD district ordinance
30under the 1500 series of this chapter.
31(7) Adopting, rejecting, or amending a flood plain zoning
32ordinance under IC 14-28-4.
33(8) Certifying a recommendation, or modifying or terminating a
34commitment, under section 1015(b)(6) or 1015(b)(10) of this
35chapter.
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                                8
               REPORT OF THE PRESIDENT
                    PRO TEMPORE
   Mr. President: Pursuant to Senate Rule 68(b), I hereby report that
Senate Bill 7, currently assigned to the Committee on Utilities, be
reassigned to the Committee on Environmental Affairs.
                                                              BRAY
                           _____
                   COMMITTEE REPORT
   Mr. President: The Senate Committee on Environmental Affairs, to
which was referred Senate Bill No. 7, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
   (Reference is to SB 07 as introduced.)
                                         NIEMEYER, Chairperson
Committee Vote: Yeas 7, Nays 3
                           _____
                      SENATE MOTION
Mr. President: I move that Senate Bill 7 be amended to read as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 14-39-2-1, AS ADDED BY P.L.163-2022,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Except as otherwise provided in this
chapter, this chapter does not apply to extractable mineral resources.
(b) Except as otherwise provided in this chapter, this chapter does
not preclude the exercise of rights provided by IC 14-37-9.
(c) 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
  resources; and
  (2) may not adversely affect oil, gas, and coal resources, except
  as is strictly necessary to construct and maintain a carbon
SB 7—LS 6088/DI 153
                              9
 sequestration project that will provide for the permanent storage
 of carbon dioxide.
   (e) The amendments made to this chapter by SEA 7-2026 do not
apply to a carbon sequestration project, including the
transportation of carbon dioxide associated with the project, that
has been authorized to proceed under a UIC Class VI permit issued
prior to July 1, 2026.".
   Renumber all SECTIONS consecutively.
   (Reference is to SB 7 as printed January 27, 2026.)
                                                      BALDWIN
SB 7—LS 6088/DI 153