A Senate committee passed a bill on Thursday that aims to help ensure AI data centers coming into Indiana have the massive amount of power they need — primarily by subsidizing small nuclear plants and keeping coal plants online. The committee heard nearly two hours of testimony on House Bill 1007 — mostly in opposition.
Among other things, the bill would allow an Indiana utility to pass along some of the costs of developing a small modular nuclear reactor to its customers — even if the plant never gets finished.
So far, none of the ones in the U.S. have. Sen. Spencer Deery (R-West Lafayette) said that doesn’t mean Indiana shouldn’t lead in this area.
“It’s akin to saying, ‘You know, we never should have gone to the moon because nobody had ever had done it before.’ We need to be asking these tough questions: How do we get there? And how can we create the landscape to make it possible," he said.
Sen. Andrea Hunley (D-Indianapolis) said that’s not what this bill is about — it’s about who should take on the financial risks that come with innovation.
“And that’s what I have an issue with is that we’re doing it on the backs of ratepayers. We’re doing it in a way that is not fiscally responsible. We’re doing it in a way that does not provide adequate consumer protections,” she said.
One federally-funded small modular nuclear reactor project was canceled in 2023 after more than a decade of work and nearly $9 billion in costs.
Susan Schechter serves on the board for Fairfield Township in Tippecanoe County. She said many people there struggle to pay their rent and electric bills. And it’s not fair to make them fund a “speculative energy project.”
“Who are you representing if you’re not representing the most vulnerable amongst us?” Schechter said.
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Several opponents to the bill have questioned whether small nuclear plants would be ready in time to serve AI data centers’ needs.
The bill also requires utilities that want to close a coal or natural gas plant — or repower it with a different source of energy — to replace it with the same amount of energy capacity or more. That could put renewable energy like wind and solar at a disadvantage.
READ MORE: House bill aims to bolster nuclear, retain coal and gas plants for AI data centers
Environment, justice, and consumer advocacy groups oppose the bill, while utilities and the Indiana Chamber of Commerce are in favor.
The bill has already passed the Indiana House. It now heads to the Senate’s Tax and Fiscal Policy Committee — where the public will get another chance to testify in front of lawmakers.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or follow her on Twitter at @beckythiele.