Small modular nuclear reactors can generate up to 500 megawatts. The International Atomic Energy Agency sets the limit at 300 megawatts, while Indiana law allows up to 470. (Adobe stock)

A Senate committee will decide whether to advance House Bill 1007, which, if passed, would allow Indiana utilities to recover costs for small modular nuclear reactors before obtaining permits.

The bill also includes a 20% tax credit for reactor manufacturers. Supporters said it will lower long-term energy costs and improve reliability, while opponents warned it could raise consumer bills.

Robyn Skyua-Boss, Hoosier Chapter director for the Sierra Club, said the bill shifts financial risk to utility customers.

“Hoosier customers could see their bills going up to subsidize and cover the costs of building out these extremely expensive small modular nuclear reactors,” Skyua-Boss pointed out. “As well as we could see costs going up because of the provisions in the bill that could delay coal plant retirements.”

No small modular nuclear reactors currently operate in the U.S., and past projects have faced cost overruns and cancellations. Opponents cited Indiana’s abandoned Marble Hill nuclear plant, which left consumers paying for an incomplete facility.

Skyua-Boss argued the bill could slow Indiana’s transition to renewable energy.

“We really want to see more engagement from our state leaders,” Skyua-Boss urged. “We want to see community solar legislation advance. Unfortunately, the bills around community solar did not advance this session; instead, we’re here talking about House Bill 1007.”

Rep. Ed Soliday, R-Valparaiso, the bill’s author, said it positions Indiana as an energy leader while balancing cost and sustainability. The bill now moves to a Senate committee.