Natural Resources Commission approves carbon sequestration rules

Monday, July 28, 2025 at 6:57 AM

By Staff report

The Indiana Natural Resources Commission (NRC) granted final adoption of rules overseeing carbon sequestration and carbon dioxide transmission pipelines.
Carbon sequestration involves the capture of carbon dioxide produced through industrial facilities and its injection deep underground into porous rock, with the purpose of reducing greenhouse gas emissions.
In 2022, the Indiana General Assembly passed legislation (HEA 1209-2022) to allow for carbon sequestration projects in Indiana, and in 2023, passed legislation (HEA 1626-2023) directing the DNR to adopt rules for their implementation.
The adopted rules establish permitting processes, operational requirements, and compliance standards for industry participants, as well as protections for neighboring landowners.
Currently, carbon sequestration projects in Indiana must be reviewed by the U.S. Environmental Protection Agency (EPA) for matters including safety and water quality protections before receiving federal Class VI construction and injection permits. These federal permits are required before companies can receive a carbon sequestration permit or a pipeline certificate of authority from the DNR.

The rules include:

Establishing application requirements for carbon sequestration project permits and carbon dioxide transmission pipeline certificates of authority, and defining timelines for review, approval, modification, and transfer of permits, as required by Indiana code.
Providing regulations that allow agreements between pore space owners and potential operations.
Ensuring alignment with the EPA’s Class VI well regulations to streamline federal and state permitting.
Working with the Indiana Department of Transportation and the Indiana Utility Regulatory Commission to regulate carbon dioxide transmission pipelines in compliance with federal requirements.

DNR developed the rules with input from industry representatives, landowners, other state agencies, and other stakeholders to ensure clarity, efficiency, and environmental safety.
DNR began the process of developing carbon sequestration rules in 2023. The NRC provided preliminary adoption of the rule in March 2025, followed by multiple public meetings and public comment periods before today’s final adoption.
Video from the meeting is available at https://www.in.gov/nrc/meetings-and-minutes/.