House Bill 1209 (Carbon Sequestration Projects), authored by Rep. Ed Soliday (R-Valparaiso), was heard in the House Natural Resources Committee last week and passed 10-2. This bill establishes a mechanism for underground storage of carbon dioxide (CO2) in pore space in Indiana. It creates a hierarchy of rights in which CO2 is subordinate to the mineral rights of oil, gas and coal. It creates a dispute resolution process if two or more pore space owners can’t agree on how pore space in a storage field will be used. It limits a claim of subsurface trespass against a storage operator conducting carbon sequestration in accordance with a valid Class VI permit and a permit issued by the Department of Natural Resources (DNR) for a carbon sequestration project. The Chamber supports this bill, which creates a mechanism for carbon sequestration in Indiana. It also addresses mineral and property rights and addresses liability for carbon sequestration. This bill is consistent with several recommendations regarding carbon made in the Indiana Chamber Foundation’s Energy Study, Powering Indiana’s Economic Future. The measure was referred to the House Ways and Means Committee for further review.
House Bill 1249 (Carbon Sequestration Pilot Project), authored by Rep. Dave Abbott (R-Rome City), was heard in the House Natural Resources Committee last week and advanced 7-5. This bill changes the description of the carbon sequestration pilot project that is authorized under current law. It eliminates the requirement that the operator of the carbon sequestration pilot project be designated by the DNR director. Instead, it requires that the operator has submitted an application for a permit for the underground injection and permanent geologic sequestration of carbon dioxide to be issued by the United States Environmental Protection Agency (EPA) under the federal Safe Drinking Water Act. The bill limits any potential liability of this pilot project by providing that a person asserting a carbon sequestration claim must prove actual interference with the reasonable use of the person’s property or direct and tangible physical damage to the person’s property, not just a lowering of property value due to perceived risk. The Chamber supports this legislation. This bill has language similar to that of last year’s bill, SB 373, which we supported. It addresses property rights and liability for carbon sequestration specific to the pilot project established in Terre Haute. This bill also is consistent with several recommendations regarding carbon made in the Indiana Chamber Foundation’s Energy Study, Powering Indiana’s Economic Future. The legislation is now eligible for further action on the House floor.
Senate Bill 388 (Foreign Business Ownership of Agricultural Land), authored by Sen. Mark Messmer (R-Jasper), was heard in the Senate Agriculture Committee last week and passed 8-1 This bill provides that beginning July 1, a foreign business entity may not acquire agricultural land located within Indiana, unless the agricultural land will be used for nonfarming business purposes. It prohibits a foreign business entity that owns agricultural land located within Indiana from transferring the agricultural land to another foreign business entity after June 30. It also requires a foreign business entity to report the acquisition, sale or transfer of agricultural land located within Indiana to the Secretary of State and provides that agricultural land acquired, sold or transferred in violation of law is subject to forfeiture to the state. The Chamber opposed this legislation in the committee. We cited our strong trade relationship with many foreign trading partners. This could be problematic as it pertains to mergers and acquisitions. The author noted our concerns and asked the Chamber to work with him to clean up the language. The bill is now eligible for further action on the Senate floor.
Senate Bill 271 (Small Modular Nuclear Reactors), authored by Sen. Eric Koch (R-Bedford), was heard in the Senate Utilities Committee last week and voted out 8-2. This bill amends the statute governing certificates of public convenience and necessity that are issued by the Indiana Utility Regulatory Commission (IURC) for the construction, lease or purchase of electric generation facilities to require the IURC, in consultation with the Indiana Department of Environmental Management (IDEM), to adopt rules for the construction, purchase or lease of small modular nuclear reactors in Indiana for the generation of electricity to be used to furnish public utility service to Indiana customers. The Chamber supported this legislation in the committee. It establishes a clear procedural pathway for utilities in Indiana to use these small reactors to generate electricity and utilize existing infrastructure. This bill is consistent with recommendations made in the Indiana Chamber Foundation’s Energy Study, Powering Indiana’s Economic Future. The measure now awaits action on the Senate floor.
Senate Bill 411 (Commercial Solar and Wind Energy), authored by Sen. Mark Messmer (R-Jasper), was heard in the Senate Utilities Committee on Thursday. The bill passed 7-1 – with Sen. Andy Zay (R-Huntington) being the only no vote – and is now eligible for a vote by the full Senate. This bill will allow Indiana units of local government to register with the Indiana Economic Development Corporation (IEDC) to be a Commercial Solar Energy Ready Community and receive financial incentives from the state. The IEDC shall certify a unit as a Commercial Solar Energy Ready Community if the unit meets certain requirements, including the adoption of commercial wind and/or solar sighting regulations that include standards that are not more restrictive than the default standards set forth in the bill. Participation by the local unit of government is voluntary. The Chamber supported this legislation in the committee as it was one of our legislative priorities for the 2022 session. This bill provides some regulatory certainty for sighting of this type of energy generation and is consistent with recommendations made in the Indiana Chamber Foundation’s Energy Study, Powering Indiana’s Economic Future.
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