Indiana establishes civil penalties for carbon dioxide storage violations

April 25, 2025 | 2025 House Enrolled Bills, 2025 Enrolled Bills, 2025 Bills, Indiana Legislation Bills, Indiana


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Indiana establishes civil penalties for carbon dioxide storage violations
House Bill 1001, introduced by Indiana House Legislation on April 25, 2025, aims to regulate carbon dioxide storage facilities in the state, marking a significant step in Indiana's environmental policy. The bill seeks to establish a framework for the injection and storage of carbon dioxide, a critical component in efforts to combat climate change by reducing greenhouse gas emissions.

One of the key provisions of House Bill 1001 is the stipulation that the state may only assume ownership and responsibility for a storage facility if both the lessor and lessee agree to the transfer in their lease agreement. This ensures that the state’s involvement is consensual and clearly defined, limiting its liability to the storage facility itself and not extending to other lease provisions. Additionally, the bill clarifies that the storage operator retains title to the carbon dioxide until the state issues a certificate of completion, which is crucial for maintaining accountability in the storage process.

The bill also introduces a structured penalty system for violations related to carbon dioxide storage. First-time offenders face a civil penalty of $1,000, escalating to $10,000 for third and subsequent violations. This tiered approach aims to encourage compliance while providing a clear framework for enforcement. If violations are not remedied within a specified timeframe, the department can issue a cessation order, imposing daily fines until the issue is resolved.

Debate surrounding House Bill 1001 has highlighted concerns from environmental advocates who argue that the bill may not go far enough in protecting against potential risks associated with carbon dioxide storage, such as leakage or contamination of groundwater. Critics are calling for more stringent regulations and oversight to ensure public safety and environmental integrity.

Economically, the bill could have significant implications for Indiana's energy sector, particularly as the state seeks to balance economic growth with environmental responsibility. By facilitating carbon capture and storage, Indiana may attract investments in green technology and create jobs in the emerging carbon management industry.

As the bill moves through the legislative process, its outcomes could shape Indiana's approach to climate change and environmental stewardship. Stakeholders are closely watching how the state will implement these regulations and the potential impact on both the environment and local communities. The department is also tasked with submitting a report by September 1, 2030, detailing the amount of carbon dioxide injected into storage facilities, which will be crucial for assessing the effectiveness of the new regulations.

In conclusion, House Bill 1001 represents a pivotal moment for Indiana as it navigates the complexities of carbon management. The bill's passage could signal a commitment to innovative solutions in the fight against climate change while addressing community concerns about environmental safety and economic viability.

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Scribe from Workplace AI
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