By Casey Smith for the Indiana Capital Chronicle.
Broadcast version by Joe Ulery for Indiana News Service reporting for the Indiana Capital Chronicle-Free Press Indiana-Public News Service Collaboration

House Republicans gave the final go-ahead Tuesday to a caucus priority bill that seeks to incentivize new power generation in Indiana.

A 63-23 party-line vote on House Bill 1007 set the measure on course for Gov. Mike Braun’s desk.

The bill will expedite approval processes for large-load customers like data centers and create cost recovery mechanisms for projects utilities take on to serve those big customers. 

It will also require a big prospective grid addition to make “significant and meaningful financial assurances” for such projects — reimbursing at least 80% of costs and protecting other existing and future customers from the expenses.

The bill, authored by Rep. Ed Soliday, Valparaiso, additionally gets tough with utilities planning to close — or convert to natural gas — any coal-fired plants of at least 125 megawatts. Current law mandates utilities that are not generating at least 85% of peak demand to report three-year projections to the Indiana Utility Regulatory Commission (IURC).

Utilities will instead be required to annually report the amount of resource generating capacity they plan to take offline. If, after an investigation, the IURC doesn’t think a utility can provide reliable service, it would have to block the utility’s plan or order it to either acquire or build capacity.

“We’re in competition with other states,” Soliday said. “We will not be the biggest incentive-offering state. (The bill) will put us in second. We won’t get a dime if they don’t come here, but if we are able to incentivize them to come here, we get 80% of something, not 100% of nothing.”

After strong pushback, senators removed more contentious provisions that intended to specifically boost small modular nuclear reactor (SMR) development — including a 20% sales tax credit for utilities. 

That tax credit remains in the bill, however, for Hoosier manufacturers that produce SMR technology which could later be used by utilities in Indiana or elsewhere across the globe.

Democratic Rep. Matt Pierce, of Bloomington, said Tuesday he has concerns about the remaining tax credit, which could cost taxpayers an estimated $280 million, according to a legislative fiscal analysis.

He worried, too, that the overall bill will “force more expensive, obsolete coal plants to remain online for a longer period of time” — given that SMR development has largely been proposed on existing coal plant sites.

“Imagine what we could do with $280 million when it comes to providing people with health care, childcare, other essential services that people may rely upon the state,” Pierce said.


Casey Smith wrote this article for the Indiana Capital Chronicle.


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Supporters of electric vehicle ownership said there are a number of advantages to owning one.

Studies show EVs can convert 85% to 90% of their energy into forward movement. A majority of the electricity used in an EV vehicle is American-made and an EV can be charged at home, just like a cellphone.

Despite the benefits and their popularity, Rep. Mike Johnson, R-La., the Speaker of the House, has proposed removing a $7,500 tax credit for EV owners as part of President Donald Trump's goal to restructure the country's budget.

John Higham, board member of the Electric Vehicle Association, wondered if it will cause potential EV car buyers to back away.

"Do I think if this $7,500 tax credit suddenly disappeared, it's not going to kill the electric vehicle?," Higham asked. "It might slow the acceleration of the adoption of the electric vehicle but it's certainly not going to reverse the trend."

Trump's budget proposal could pass between the end of May and the end of July. Higham acknowledged the tax credit is a strong motivator for people to buy or lease an electric car. And he expects a 10% to 12% growth rate for purchases. Higham admitted the number could drop to between 8% and 9% if the tax credit disappears.

As of December 2023, the Department of Energy shows slightly more than 26,000 Hoosiers own an electric vehicle.

The Republican controlled House has proposed legislation to extend the tax credit until the end of 2025 and analysts said the largest EV automaker, Tesla, owned by Trump associate Elon Musk, would be affected the most if the tax credit ends. Higham noted the fallout of repealing the tax credit could break down along party lines.

"That economic engine that is in those red districts, where there's new battery manufacturing put in, new automotive manufacturing put in," Higham pointed out. "Those are the voters that are going to feel it the most, are in those red districts. And so there are Republican congressmen who are saying, not quite so fast. It is harder to repeal than I think most people realize."

In 2024, it is estimated the federal government spent about $2 billion in advance point-of-sale EV tax credit payments. Buzz about the tax removal may push consumers to buy EVs sooner than later, to take advantage of the credit before it disappears.

Some Republican lawmakers, including Rep. Nick Begich, R-Alaska, are considering repealing the Inflation Reduction Act's clean energy incentives. Supporters of the measure say cuts would threaten jobs in Alaska. The efforts come as Alaska's liquid natural gas supplies will not be enough to meet demand in the state. That means the state may have to begin importing gas causing prices to rise.

Jennifer Hyde, federal infrastructure coordinator at the Alaska Center, hoped clean energy projects could begin benefitting the state before the crisis takes hold.

"We're hoping that communities can seize on IRA funds in order to actualize on solar projects, on wind projects, on hydro projects, on a number of other alternatives before this crisis happens," she explained.

Begich and other Republicans signed a letter arguing that the clean energy subsidies in the IRA will undermine America's energy dominance - and inflate energy costs. But Sen. Lisa Murkowski, R-Alaska, has supported the clean energy incentives.

Anchorage business owner Ben Kellie is concerned about the impacts of the possible repeal of clean energy incentives on Alaska's economy, and said the incentives can mean major savings for Alaska families.

"This isn't just saving a few cents off of a bill. A lot of these projects are in communities where people are paying over a thousand dollars to heat and light small homes off the road system," Kellie said. "This is real money that not only stays in the community and circulates, but helps families make ends meet through cold winters."

In 2023, about a quarter of all Alaska energy came from renewable sources.

A bill before Indiana legislators that would have prevented city officials from requesting energy information from large commercial buildings failed in this year's legislative session.

One nonprofit believes if Senate Bill 197/House Bill 1389 had become law, Hoosiers would have faced higher utility bills. The Thriving Buildings Program relies on utility usage data gathered between 2021 and 2025 to help lower utility bills.

Paula Brooks, justice director for the nonprofit Hoosier Environmental Council, said conversations between community stakeholders, public officials and residents about building environments are key to the program's success.

"It gave building owners the opportunity to benchmark -- which is, make comparisons of their energy and water usage -- to be able to identify ways to save money on utility costs and most importantly, improve the air quality, reduce carbon emissions," she explained.

A building environment consists of building and construction materials and is a major contributor to global gas emissions. With the program's collected data, it is predicted that public health savings in Indianapolis could reach $77 million by 2030. Indianapolis is responsible for 66% of community-wide greenhouse gas emissions.

Brooks applauds the Thriving Buildings Program because residents feel their voices are being heard as their communities develop. But these voices also oppose President Donald Trump's recent executive orders to build more coal plants to boost electricity generation, and to ensure the EPA is assisting in promoting America's energy security.

Brooks believes there is another alternative to using coal as a power source.

"Renewables is not only the future, but it's happening now. This distribution model that we have now, where the energy companies hold all the power, it's only about 75 years old," she continued.

Renewable energy creates opportunities to look at new energy delivery models or "energy democracy," with solar for microgrids. So, rather than having a huge power plant somewhere, she noted, the electricity could be in a community and owned by the community, while contributing to the electric generation for industrial use.


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