Senate Bill 265 (Carbon Sequestration Pilot Project), authored by Rep. Jon Ford (R-Terre Haute) and sponsored by Rep. Alan Morrison (R-Brazil), was heard in the House Natural Resources Committee on Monday. 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 project be designated by the director of the Department of Natural Resources (DNR). 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 U.S. Environmental Protection Agency 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 Senate Bill 373 in 2021, which we supported, and House Bill 1249 that is currently moving through the Senate. It addresses property rights and liability for carbon sequestration specific to the pilot project established in Terre Haute. The bill passed out of committee by a vote of 8-3 and is now eligible for further action on the House floor.

Senate Bill 271 (Small Modular Nuclear Reactors), authored by Sen. Eric Koch (R-Bedford) and sponsored by Rep. Ed Soliday (R-Valparaiso), was heard in the House Utilities Committee on Tuesday. 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. The bill passed out of committee by a vote of 8-3 and is now eligible for further action on the House floor.

Senate Bill 411 (Commercial Solar and Wind Energy), authored by Sen. Mark Messmer (R-Jasper) and sponsored by Rep. Ed Soliday (R-Valparaiso), was heard in the House Utilities Committee on Tuesday. 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 siting of this type of energy generation. The bill passed out of the committee unanimously. It was recommitted to the House Ways and Means Committee to review the fiscal impact of the bill.

NOTE: These three bills are consistent with several recommendations regarding carbon made in the Indiana Chamber Foundation’s Energy Study, Powering Indiana’s Economic Future. 

Resource: Greg Ellis at (317) 264-6881 or email: gellis@indianachamber.com