SB 260

                                                              Introduced Version
           SENATE BILL No. 260
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 14-37-10-5; IC 14-39; IC 32-24-5-2.
Synopsis: Carbon dioxide. Specifies that an application for a carbon
dioxide transmission pipeline certificate of authority must include: (1)
a risk assessment; and (2) a carbon dioxide injection estimate. Provides
that when determining compensation in certain eminent domain
proceedings, the perceived risk of certain hazardous conditions must
be taken into account. Establishes a carbon sequestration pilot project
fee program, and specifies certain conditions in relation to the fee
money. Provides that a transfer of ownership in regard to a carbon
sequestration pilot project does not relieve a prior operator from
liability for any negligence or willful misconduct that occurred before
the transfer. Requires the department of natural resources to inspect a
carbon sequestration pilot project. Alters the threshold of consent one
must obtain in order to use eminent domain or integration in relation
to carbon sequestration.
Effective: July 1, 2026.
                    Deery, Niemeyer
   January 8, 2026, read first time and referred to Committee on Utilities.
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                                                                                       Introduced
            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. 260
    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 14-37-10-5, AS AMENDED BY P.L.150-2011,
2 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 5. (a) Money paid into the fund shall be
4 appropriated for the following purposes:
5      (1) To supplement the cost required to abandon a well that has
6      had a permit revoked under IC 14-37-13-1.
7      (2) To cover the costs of remedial plugging and repairing of wells
8      under IC 14-37-8, including the expenses of remedial action
9      under IC 14-37-8-15.
10      (3) To cover the cost to:
11(A) mitigate environmental damage; or
12(B) protect public safety against harm;
13      caused by a well regulated under this article or the carbon
14      sequestration pilot project established under IC 14-39-1.
15      (4) Pipeline safety.
16      (5) To monitor or manage the carbon sequestration pilot
17      project established under IC 14-39-1.
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1    (b) The director may make expenditures from the fund for
2 emergency purposes under section 6 of this chapter without the prior
3 approval of the budget agency or the governor. An expenditure under
4 this subsection may not exceed fifty thousand dollars ($50,000).
5    (c) The director may establish a program to reimburse an applicant
6 for the reasonable expenses of remedial action incurred under
7 IC 14-37-8-15. The director may make expenditures from the fund for
8 this purpose and may establish any necessary guidelines and
9 procedures to administer the program.
10    SECTION 2. IC 14-39-1-4, AS AMENDED BY P.L.213-2025,
11 SECTION 132, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2026]: Sec. 4. (a) A carbon dioxide
13 transmission pipeline company that seeks to construct, operate, and
14 maintain a carbon dioxide pipeline in Indiana must apply to the
15 department for issuance of a carbon dioxide transmission pipeline
16 certificate of authority. The department shall prescribe the form of the
17 application, which must:
18(1) include a filing fee of one thousand dollars ($1,000);
19(2) be signed by a responsible officer of the company;
20(3) include a statement verifying that the information submitted
21is true, accurate, and complete to the best of that responsible
22officer's knowledge and belief; and
23(4) include a risk assessment with respect to the proposed
24carbon dioxide transmission pipeline that includes scenario
25modeling;
26(5) include an estimate of the amount of carbon dioxide to be
27injected into underground strata and formations for the
28period of the certificate of authority; and
29(4) (6) include all information necessary for the department to
30find the following:
31(A) That the applicant, or the contractor or subcontractor of
32the applicant, has the financial, managerial, and technical
33ability to construct, operate, and maintain a carbon dioxide
34transmission pipeline in Indiana.
35(B) That the applicant, or the contractor or subcontractor of the
36applicant, has the requisite experience constructing, operating,
37and maintaining a transmission pipeline.
38(C) That the applicant has entered into a contract to transport
39carbon dioxide by pipeline in Indiana with:
40(i) at least one (1) producer of carbon dioxide located in
41Indiana; and
42(ii) unless all of the carbon dioxide to be transported in the
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1proposed carbon dioxide transmission pipeline is for the
2applicant's own use or account, at least one (1) end user or
3storer of carbon dioxide.
4(D) That the applicant has provided documentation to the
5department showing the proposed length, diameter, and
6location of the proposed carbon dioxide transmission pipeline
7in Indiana.
8(E) That the applicant will construct, operate, and maintain the
9proposed carbon dioxide transmission pipeline in accordance
10with applicable local, state, and federal law, including federal
11and state safety regulations and rules governing the
12construction, operation, and maintenance of carbon dioxide
13transmission pipelines, and related facilities and equipment, to
14ensure the safety of pipeline employees and the public.
15(F) That the applicant has signed a statement indicating that
16the applicant agrees to construct a proposed carbon dioxide
17transmission pipeline in a manner compliant with the
18guidelines adopted under IC 8-1-22.6-8 by the pipeline safety
19division of the Indiana utility regulatory commission.
20    (b) The department shall review an application filed under
21 subsection (a). Subject to subsection (f), if the department determines
22 that the application is incomplete or inaccurate, or both, the department
23 shall return the application to the applicant, informing the applicant in
24 writing of the applicant's right to file a corrected application with the
25 department. If the department determines that the application is
26 complete and accurate, the department shall provide notice to the
27 applicant of:
28(1) that determination; and
29(2) the date, time, and location of the public information meeting
30to be held under subsection (d).
31    (c) The applicant shall:
32(1) upon receipt of a notice under subsection (b):
33(A) place for public inspection a copy of the application in a
34public library located in each county in which the carbon
35dioxide transmission pipeline is proposed to be located; and
36(B) publish notice, in the same manner that would be required
37if the applicant were subject to IC 5-3-1, in each county in
38which the carbon dioxide transmission pipeline is proposed to
39be located, of:
40(i) the name and address of each library in which a copy of
41the application is placed under clause (A); and
42(ii) the date, time, and location of the public information
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1meeting to be held under subsection (d);
2(2) provide to the department proof of publication of notice under
3subdivision (1)(B); and
4(3) have a representative present at the public information
5meeting held under subsection (d).
6    (d) The department shall:
7(1) conduct a public information meeting in the county seat of one
8(1) of the counties, as determined by the department, in which the
9proposed carbon dioxide transmission pipeline will be located;
10and
11(2) provide an opportunity at the meeting for members of the
12public to be briefed and to ask questions about the proposed
13carbon dioxide transmission pipeline.
14    (e) Not later than ninety (90) days after the public information
15 meeting held under subsection (d), the department shall notify the
16 applicant in writing that:
17(1) the department:
18(A) has made the findings described in subsection (a)(4);
19(a)(6); and
20(B) has approved the application; or
21(2) the department:
22(A) has determined that the department is unable to make the
23findings described in subsection (a)(4); (a)(6); and
24(B) has disapproved the application.
25    (f) The department shall process a corrected application that is filed
26 as permitted under subsection (b) in the same manner the department
27 processes an initially filed application under subsection (a).
28    (g) If the department fails to act under subsection (e) not later than
29 ninety (90) days after the public information meeting held under
30 subsection (d), the application is considered to be approved by the
31 department.
32    (h) If:
33(1) the department approves the application under subsection
34(e)(1); or
35(2) the application is considered to be approved as described in
36subsection (g);
37 the department shall issue to the applicant a carbon dioxide
38 transmission pipeline certificate of authority.
39    SECTION 3. IC 14-39-1-9, AS AMENDED BY P.L.291-2019,
40 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2026]: Sec. 9. (a) A carbon dioxide transmission pipeline
42 company that exercises the authority set forth in section 7(a) of this
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1 chapter shall:
2(1) compensate the property owner by making a payment to the
3owner equal to:
4(A) one hundred twenty-five percent (125%) of the fair market
5value of the interest in the property acquired, if the
6right-of-way or easement involves agricultural land; or
7(B) one hundred fifty percent (150%) of the fair market value
8of the interest in the property acquired, if the right-of-way or
9easement involves a parcel of property occupied by the owner
10as a residence; and
11(2) pay to the property owner:
12(A) any damages determined under IC 32-24-1; and
13(B) any loss incurred in a trade or business;
14that are attributable to the exercise of eminent domain.
15     (b) In determining the compensation to be paid to the owner of
16 property condemned under this chapter, proof may be offered and
17 consideration must be given to the present day diminution in value
18 of the residue of the property, if any, caused by the perceived risk
19 of a hazardous condition related to the carbon sequestration pilot
20 project.
21     SECTION 4. IC 14-39-1-11.5 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2026]: Sec. 11.5. (a) An operator of a carbon
24 sequestration pilot project shall pay the department a fee for every
25 ton of carbon dioxide injected into underground strata and
26 formations.
27     (b) An operator of a carbon sequestration pilot project shall pay
28 annually to the department a fee of eight cents ($0.08) per ton of
29 carbon dioxide estimated to be injected into underground strata
30 and formations by:
31(1) the estimate provided under section 4(a)(5) of this chapter;
32or
33(2) another document provided to the department by the
34operator.
35     (c) An operator of a carbon sequestration pilot project shall
36 reconcile the previous calendar year's payment with the volume of
37 carbon dioxide actually injected into underground strata and
38 formations in the previous calendar year. The operator of the
39 carbon sequestration pilot project shall submit payment for the
40 amount of carbon dioxide injected into underground strata and
41 formations less the amount paid the previous calendar year.
42     (d) The department shall refund an operator of a carbon
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1 sequestration pilot project any overpayment in the current year
2 from the previous calendar year.
3    SECTION 5. IC 14-39-1-12, AS AMENDED BY P.L.213-2025,
4 SECTION 134, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2026]: Sec. 12. (a) The department shall
6 deposit fee revenue received under section sections 4(a)(1) and 11.5
7 of this chapter in the carbon sequestration project program
8 administrative fund established by IC 14-39-2-10.5.
9    (b) Fee revenue collected under section 11.5 of this chapter:
10      (1) may only be used to monitor or manage carbon
11      sequestration pilot projects approved under this chapter; and
12      (2) may not be considered for purposes of calculating the total
13      amount of money in the carbon sequestration project
14      program administrative fund under IC 14-39-2-10.5.
15    SECTION 6. IC 14-39-1-14, AS ADDED BY P.L.291-2019,
16 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2026]: Sec. 14. (a) Because the public interest would be
18 served by the state of Indiana succeeding to the rights of a person that
19 has conducted the underground storage of carbon dioxide, the state of
20 Indiana, upon the recommendation of the director of the department
21 and review by the state budget committee, may obtain ownership of:
22      (1) the carbon dioxide stored in underground strata and
23      formations; and
24      (2) the underground strata and formations in which the carbon
25      dioxide is stored;
26 from the operator of the carbon sequestration pilot project.
27    (b) The state of Indiana may obtain ownership of the carbon dioxide
28 stored in underground strata and formations and the underground strata
29 and formations in which the carbon dioxide is stored under this section:
30      (1) after the operator, through the carbon sequestration pilot
31      project, has injected carbon dioxide into underground strata and
32      formations for at least twelve (12) years; or
33      (2) after the operator of the carbon sequestration pilot project
34      ceases to inject carbon dioxide into underground strata and
35      formations, if the injection ceases less than twelve (12) years after
36      it began.
37    (c) A transfer of ownership under this section does not relieve
38 the operator of the carbon sequestration pilot project from liability
39 for any negligence or willful misconduct related to the carbon
40 sequestration pilot project that occurred before the transfer.
41    SECTION 7. IC 14-39-1-19 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
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1 1, 2026]: Sec. 19. The department shall inspect the carbon
2 sequestration pilot project at reasonable times and to the extent
3 reasonably necessary to ensure the safety of the carbon
4 sequestration pilot project.
5    SECTION 8. IC 14-39-2-4, AS AMENDED BY P.L.213-2025,
6 SECTION 135, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2026]: Sec. 4. (a) If at least two (2) pore space
8 owners own pore space located within a proposed carbon dioxide
9 storage area of a storage facility, the owners may agree to integrate
10 their interests to develop the pore space as a proposed storage facility
11 for the underground storage of carbon dioxide.
12    (b) If all of the owners of the pore space under subsection (a) do not
13 agree to integrate their interests, the department may issue an order
14 requiring the owners to integrate their interests and to develop the pore
15 space as a proposed storage facility for the underground storage of
16 carbon dioxide to serve the public interest, prevent waste, protect
17 correlative rights, and facilitate the efficient and effective use of natural
18 resources subject to the findings under subsection (c).
19    (c) Before issuing an order under subsection (b), the department
20 must make the following findings:
21(1) That a storage operator:
22(A) filed a complete application for a UIC Class VI permit or
23a complete application for an amended UIC Class VI permit;
24and
25(B) submitted all the necessary information to the United
26States Environmental Protection Agency for the agency to
27process the storage operator's permit application.
28(2) That the storage operator has made a good faith effort to
29obtain the consent of all pore space owners located within the
30proposed storage facility.
31(3) That the storage operator has obtained the consent of the
32owners of the pore space underlying at least seventy percent
33(70%) of the surface area above the proposed storage facility or
34amended proposed storage facility.
35(3) That the storage operator has obtained both the consent
36required under STEP THREE (i) and the consent required
37under STEP THREE (ii) of the following formula:
38STEP ONE: Determine the total amount of pore space
39located within the proposed storage facility or amended
40proposed storage facility.
41STEP TWO: Determine the amount of pore space that is:
42(i) located within the proposed storage facility or
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1amended proposed storage facility; and
2(ii) owned by a resident of the county in which the
3proposed storage facility or amended proposed storage
4facility is located.
5STEP THREE: The storage operator must obtain both of
6the following:
7(i) Consent from county resident owners of at least
8seventy percent (70%) of the pore space determined
9under STEP TWO.
10(ii) Consent from the owners of at least seventy percent
11(70%) of the total amount of pore space determined
12under STEP ONE.
13(4) That all pore space owners who do not agree to integrate their
14interests to develop the pore space as a proposed storage facility
15for the underground storage of carbon dioxide are equitably
16compensated.
17    (d) A right to pore space granted by this section does not confer a
18 right to enter upon, or otherwise use, the surface of the land which is
19 integrated under this section unless provided in an order requiring the
20 owners to integrate their interests and to develop the pore space as a
21 proposed storage facility for the underground storage of carbon
22 dioxide.
23    (e) An involuntary integration order issued by the department takes
24 effect fifteen (15) days after the applicant is issued a UIC Class VI
25 permit or an amended UIC Class VI permit, as applicable.
26    SECTION 9. IC 32-24-5-2, AS AMENDED BY P.L.291-2019,
27 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2026]: Sec. 2. (a) As used in this section, "favored
29 proceeding" means a proceeding under this chapter to:
30(1) acquire the right to explore and examine a subsurface
31stratum or formation in land; and
32(2) create the right of ingress and egress for operations
33connected to the acquisition.
34    (a) (b) A person, firm, limited liability company, municipal
35 corporation, or other corporation authorized to do business in Indiana
36 and engaged in the business of transporting or distributing gas by
37 means of pipelines into, within, or through Indiana for ultimate public
38 use may condemn:
39(1) land subsurface strata or formations;
40(2) other necessary land rights;
41(3) land improvements and fixtures, in or on land, except
42buildings of any nature; and
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1      (4) the use and occupation of land subsurface strata or formations;
2 for constructing, maintaining, drilling, utilizing, and operating an
3 underground gas storage reservoir.
4    (b) (c) The operator of the carbon sequestration pilot project
5 established under IC 14-39-1 may exercise the power of eminent
6 domain to obtain:
7      (1) ownership of such underground strata and formations located
8      under the surface of the owner's property as may be necessary or
9      useful for underground storage of carbon dioxide in the strata or
10      formations; and
11      (2) ownership or other rights to one (1) or more areas of the
12      surface of the owner's property, including but not limited to one
13      (1) or more rights-of-way or easements, as may be necessary or
14      useful for constructing, maintaining, using, operating, and gaining
15      access to monitoring facilities required by the United States
16      Environmental Protection Agency for the underground storage of
17      carbon dioxide.
18    (c) (d) The following rights in land may be condemned for use in
19 connection with the underground storage of gas:
20      (1) To drill and operate wells in and on land.
21      (2) To install and operate pipelines.
22      (3) To install and operate equipment, machinery, fixtures, and
23      communication facilities.
24      (4) To create ingress and egress to explore and examine
25      subsurface strata or underground formations.
26      (5) To create ingress and egress to construct, alter, repair,
27      maintain, and operate an underground storage reservoir.
28      (6) To exclusively use any subsurface strata condemned.
29      (7) To remove and reinstall pipe and other equipment used in
30      connection with rights condemned under subdivisions (1) through
31      (6).
32    (d) (e) Acquisition of subsurface rights in land for gas storage
33 purposes or for purposes of the carbon sequestration pilot project
34 established under IC 14-39-1 by condemnation under this section must
35 be without prejudice to any subsequent proceedings that may be
36 necessary under this section to acquire additional subsurface rights in
37 the same land for use in connection with the underground storage.
38 Surface rights in land necessary for the accomplishment of the
39 purposes set forth in this section may be condemned.
40    (e) (f) Except with respect to a proceeding under this chapter to:
41      (1) acquire the right to explore and examine a subsurface stratum
42      or formation in land; and
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1(2) create the right of ingress and egress for operations connected
2to the acquisition;
3 favored proceeding and subject to subsection (f), (h), as a condition
4 precedent to the exercise of the right to condemn any underground
5 stratum, formation, or interest reasonably expected to be used or useful
6 for underground gas storage, or for purposes of the carbon
7 sequestration pilot project established under IC 14-39-1, a condemnor
8 first must have acquired by purchase, option, lease, or other a method
9 not involving condemnation, the right, or right upon the exercise of an
10 option, if any, to store gas in at least sixty per cent percent (60%) of
11 the stratum or formation. This must be computed in relation to the total
12 surface acreage overlying the entire stratum or formation considered
13 useful for the purpose.
14     (g) Except with respect to a favored proceeding and subject to
15 subsection (h), as a condition precedent to the exercise of the right
16 to condemn any underground stratum, formation, or interest
17 reasonably expected to be used for purposes of the carbon
18 sequestration pilot project established under IC 14-39-1, a
19 condemnor first must have obtained both the consent required
20 under STEP THREE (A) and the consent required under STEP
21 THREE (B) of the following formula:
22STEP ONE: Determine the total size of the stratum or
23formation.
24STEP TWO: Determine the percentage of stratum or
25formation that is owned by a resident of the county in which
26the stratum or formation is located.
27STEP THREE: The condemnor must obtain both of the
28following by a method not involving condemnation:
29(A) Consent from county resident owners of at least sixty
30percent (60%) of the stratum or formation determined
31under STEP TWO to store gas in the stratum or
32formation.
33(B) Consent from the owners of at least sixty percent
34(60%) of the total stratum or formation determined under
35STEP ONE to store gas in the stratum or formation.
36 In making a calculation under this subsection, the percentage of
37 stratum or formation acquired must be computed in relation to the
38 total surface acreage overlying the entire stratum or formation
39 considered useful for the purpose.
40     (f) (h) A tract under which the stratum or formation sought to be
41 condemned is owned by two (2) or more persons, firms, limited
42 liability companies, or corporations must be credited to the condemnor
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1 as acquired by it for the purpose of computing the percentage of
2 acreage acquired by the condemnor in complying with the requirement
3 of subsection (e) subsections (f) and (g) if the condemnor acquires
4 from the owner or owners of an undivided three-fourths (3/4) part or
5 interest or more of the underground stratum or formation, by purchase,
6 option, lease, or other method not involving condemnation, the right,
7 or right upon the exercise of an option, if any, to store gas in the
8 stratum or formation. It is not necessary for the condemnor to have
9 acquired any interest in the property in which the condemnee has an
10 interest before instituting a proceeding under this chapter.
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