January 29, 2026 - Indiana lawmakers are considering a legislative push that would transfer regulatory authority for underground carbon dioxide storage wells from federal to state hands, reshaping how carbon capture and storage (CCS) projects are reviewed and approved across the state.

House Bill 1368 would require Indiana’s Department of Natural Resources (DNR) to seek “primacy” over Class VI injection wells – the US Environmental Protection Agency’s (EPA) permitting category for long-term geologic CO2 sequestration. 

According to federal data, nine Class VI permit applications tied to Indiana projects are currently under EPA review, reflecting rising interest in deploying CCS infrastructure across the state.

Supporters of the proposal argue that state oversight would allow faster processing timelines and better alignment with local economic development goals. Representative Ed Soliday, the bill’s sponsor, framed the measure as a competitiveness play, saying Indiana must remain flexible amid shifting federal climate and energy policy while attracting investment and industrial jobs.

Industry Support Meets Public Skepticism

Several industrial stakeholders have endorsed the proposal, citing lengthy federal permitting timelines as a major barrier. 

Ethanol producers, including POET, which operates multiple facilities in Indiana, have publicly supported efforts to streamline approvals for CO2 injection wells tied to low-carbon fuel production. State officials have echoed this view, arguing that local regulators are better positioned to manage applications efficiently while maintaining compliance with federal standards.

Indiana would join a growing group of states pursuing primacy. Arizona, Louisiana, North Dakota, Texas, West Virginia and Wyoming already oversee their own Class VI programs, while more than ten additional states are at various stages of application or rulemaking.

However, critics warn that transferring authority could weaken regulatory scrutiny. Environmental advocates have raised concerns that state agencies may face staffing and resource limitations, potentially prioritizing project speed over long-term environmental safeguards. 

Others note that carbon storage remains a relatively new technology, requiring specialized expertise to manage risks related to subsurface integrity, monitoring and long-term liability.

Currently, only one CCS project in Indiana, tied to Wabash Valley Resources’ ammonia facility, has received Class VI approval. As more proposals move forward, the outcome of House Bill 1368 could significantly influence how quickly carbon storage infrastructure develops in the Midwest.