in-20250611-IR-312250162RAA: Regulatory Analysis — 312 IAC (LSA #250162)

TITLE 312 NATURAL RESOURCES COMMISSION Regulatory Analysis LSA Document #25-162 I. Description of Rule II. Fiscal Impact Analysis III. Impacted Parties IV. Changes in Proposed Rule V. Benefit Analysis ***NOTE:  Estimated costs under the table below for “Estimated Business Impacts/Costs Savings to Regulated Entities” are possible expense estimates and will vary depending upon the specific project and the amounts each applicant pays staff for the same work. The size and scope of the project will also be a determining factor in the actual costs to a regulated entity. Additionally, because there are not many projects of this type across the United States, actual costs will not be determined until the program is well underway in Indiana. Other state regulations are different in scope than what the department is tasked with under the Indiana Code, and the costs to regulated entities would likely differ greatly as a result. Finally, some costs may also be absorbed into the costs to apply for a UIC Class VI permit with the EPA. Indiana Administrative Code Provision Direct Effects Indirect Effect Fiscal Impact to the Department Estimated Business Impacts/Costs Savings to Regulated Entities Adds 312 IAC 30-1 Applicability Adds: (1) applicability for definitions under the document and the Indiana Code; and (2) applicability of the rules to permanent underground storage of carbon dioxide Provides clear applicability of definitions to the rules, as well as applicability of the rules to underground storage of carbon dioxide None known None known None known Adds 312 IAC 30-2 Definitions Adds the following definitions: (1) carbon dioxide stream; (2) Class VI well; (3) confining zone; (4) department; (5) fair market value; (6) injection zone; (7) mechanical integrity test; (8) responsible officer; (9) transporting carbon dioxide; and (10) Underground Injection Control (UIC) Program Provides definitions for certain terms used in the proposed rules that do not appear in the Indiana Code None known None known None known Adds 312 IAC 30-3 permitting agreements between pore space owners and storage operators which allow the pore space owner to participate in the storage facility Permits an additional option to storage operators and pore space owners to negotiate use of pore space Pore space owners may participate in the storage facility should they wish to and the storage operator agree None known None known This is a type of agreement permitted by the rules, but there is no requirement that a regulated entity engage in this type of agreement Adds 312 IAC 30-4 Preapplication coordination Provides for the ability to use preapplication coordination with the department to reduce the turnaround time for applying for carbon dioxide transmission pipeline certificates of authority or carbon sequestration project permits Provides for the opportunity for an applicant to enter into preapplication coordination with the department to ensure the applicant possesses all necessary application requirements Provides for fewer delays in application processing Reduces the likelihood of an incomplete or inaccurate application that must be returned to the applicant which would ultimately delay issuing certificates of authority and project permits None known None known Preapplication coordination is a benefit provided to applicants by the department of natural resources, which is being explicitly spelled out as an option for regulated entities and does not impose a requirement on regulated entities Adds 312 IAC 30-5 Carbon dioxide transmission pipeline certificate of authority Provides for when a storage operator does not need a carbon dioxide transmission pipeline certificate of authority Adds the application requirements for a carbon dioxide transmission pipeline certificate of authority Adds how an applicant for a carbon dioxide transmission pipeline certificate of authority illustrates managerial, and technical ability to construct, operate, and maintain a carbon dioxide transmission pipeline Adds how an applicant for a carbon dioxide transmission pipeline certificate of authority illustrates requisite experience to construct, operate, and maintain a carbon dioxide transmission pipeline Adds rules regarding the sworn statement to be made by an applicant that the applicant is in compliance with applicable federal, state, and local laws Adds mapping requirements to be provided to the department for a carbon dioxide transmission pipeline certificate of authority Adds requirements for the department regarding processing an application, as well as additional requirements for a carbon dioxide transmission pipeline certificate of authority Adds provisions regarding use and occupancy of a designated public right-of-way Provides clarity to storage operators for when they are required to obtain a carbon dioxide transmission pipeline certificate of authority form the department Clearly sets forth application requirements for a carbon dioxide transmission pipeline certificate of authority Provides instruction for how an applicant demonstrates required managerial and technical ability to construct, operate, and maintain a carbon dioxide transmission pipeline Provides instruction for how an applicant demonstrates required requisite ability to construct, operate, and maintain a carbon dioxide transmission pipeline Provides clear instructions to an applicant regarding what is to be included with the sworn statement Provides instructions for fulfilling mapping requirements Provides the department with clearly established deadlines for making determinations Provides clear guidance regarding use and occupancy of a designated public right-of-way in coordination with regulations for INDOT Clarification of application requirements reduces time spent reviewing applications and streamlines the approval/denial process Provides applicants with estimates for timelines they will need to obtain other required permits and to comply with other federal, state, and local laws None known Application fees are found at IC 14-39-1-4 and are not imposed by the proposed rule. Additionally, the only state-specific documents for an application for a carbon dioxide transmission pipeline certificate of authority that are not already required by the U.S. EPA are regarding: (1) the financial, managerial, and technical ability to construct operate, and maintain a carbon dioxide transmission pipeline; and (2) the requisite experience constructing, operating, and maintaining a transmission pipeline The estimated cost of the cost imposed by the proposed rules is seventy-eight thousand five hundred fifty dollars ($78,550) Adds 312 IAC 30-5-3 regarding insurance requirements for pipelines for carbon sequestration projects Provides clear insurance requirements for pipelines for carbon sequestration projects None known None known Cost of insurance premiums vary greatly by policy type and amounts across insurance providers Estimated insurance costs are as follows: Annual premiums: $700,000 policy; approximately $1,000 annually $1 million policy; approximately $1,300 annually $5 million policy $2,000-$2,500 annually (Insurance premiums are included in the seventy-five thousand dollars ($75,000) of annual ongoing compliance costs) Adds 312 IAC 30-5-10 regarding the ability to submit a modification to a carbon dioxide transmission pipeline certificate of authority, rather than requiring an entirely new application Provides those holding a certificate of authority with an avenue by which to modify a certificate of authority, rather than submitting an entirely new application Less work for all parties involved None known None known Modification of a carbon dioxide transmission pipeline certificate of authority is a benefit to regulated entities provided by the department of natural resources in lieu of submitting a new application and is not a requirement imposed by the proposed rule Adds 312 IAC 30-5-11 regarding the ability to submit a transfer of a carbon dioxide transmission pipeline certificate of authority Provides an avenue by which a certificate of authority may be transferred None known None known None known Transfer of a carbon dioxide transmission pipeline certificate of authority is a benefit to regulated entities provided by the department of natural resources and is not a requirement imposed by the proposed rule Adds 312 IAC 30-5-12 a provision regarding suspension and revocation of a carbon dioxide transmission pipeline certificate of authority Gives the department reasons suspension or revocation of a certificate of authority is permitted Puts applicants on notice of the reasons the department can suspend or revoke a certificate of authority None known None known Suspension or revocation only occurs in the event of a violation by a regulated entity, and this is not a requirement that imposes a cost under the rules Adds 312 IAC 30-6 Petition for a carbon sequestration project permit Adds timelines for the department to review and approve or deny a carbon sequestration project permit Provides additional rules for obtaining a carbon sequestration project permit Provides the department with clearly established deadlines for making determinations Clarifies items required by the Indiana Code to obtain a carbon sequestration project permit by providing applicants with clear documentation required Provides applicants with estimates for timelines they will need to obtain other required permits and to comply with other federal, state, and local laws None known Application fees are found at IC 14-39-2-5 and are not imposed by the proposed rule. Additionally, the only state-specific documents for an application for a carbon sequestration project permit that are not already required by the U.S. EPA are regarding: (1) the financial, managerial, and technical ability to construct operate, and maintain a carbon sequestration project; and (2) the requisite experience constructing, operating, and maintaining a carbon sequestration project. The estimated cost of the cost imposed by the proposed rules is seventy-eight thousand five hundred fifty dollars ($78,550) There is no additional cost imposed to a regulated entity by the department of natural resources for modification or transfer of a carbon sequestration project permit Modification and transfer are benefits to regulated entities provided by the department of natural resources and do not impose additional cost requirements on regulated entities Adds 312 IAC 30-6-3 regarding suspension and revocation of a carbon sequestration project permit Gives the department reasons suspension or revocation of a certificate of authority is permitted Puts applicants on notice of the reasons the department can suspend or revoke a certificate of authority None known None known Suspension or revocation only occurs in the event of a violation by a regulated entity, and this is not a requirement that imposes a cost under the rules Adds 312 IAC 30-7 Ongoing requirements of a storage operator Clarifies to a storage operator the ongoing financial responsibility, record keeping, and reporting requirements None known None known The cost of ongoing requirements is approximately thirty-seven thousand five hundred dollars ($37,500) Adds 312 IAC 30-8 Records Provides storage operators with clear requirements for reporting and providing records to the department, as well as for allowing the department to inspect records None known None known The cost of ongoing requirements is approximately thirty-seven thousand five hundred dollars ($37,500) VI. Cost Analysis VII. Sources of Information VIII. Regulatory Analysis IX. Contact Information of Staff to Answer Substantive Questions Notice of Second Public Comment Period with proposed rule: 20250611-IR-312250162SNA Notice of Determination Received: June 3, 2025