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Senate approves bill to encourage small modular reactor projects, critics warn ratepayers could shoulder risks
Summary
House Bill 10 07, authorizing incentives and utility rate protections for large energy projects including small modular reactors, passed the Senate but drew strong objections from several members who said the measure shifts financial risk to utility customers.
The Senate passed House Bill 10 07, a measure lawmakers said is intended to attract high‑wage advanced manufacturing jobs and to create an expedited pathway for large electrical customers and new generation projects, including small modular nuclear reactors (SMRs). The bill passed the chamber 36‑13.
Provisions and rationale Sponsor Senator Cook said the measure contains three central elements: a tax credit for manufacturers of small modular reactors (20% of qualified investment, claimed via IEDC certification); protections for ratepayers when utilities build infrastructure for very large electricity customers by requiring large customers to cover a substantial share of the interconnection cost; and a two‑part test imposing additional review and IURC approval before utilities retire major generating units.
Supporters framed the bill as economic development and grid‑modernization policy. Senator Zaidu and others urged the chamber to keep Indiana competitive for advanced manufacturing projects and new energy jobs, saying incentives are industry standard.
Criticism and concerns Opponents warned the bill pushes unproven technology and shifts development cost and construction risk to utility ratepayers. Senator Ford said the measure “allows utilities to recover a % of their SMR development costs even if the project is never completed,” and urged colleagues to “pump the brakes” on technology that has not yet been delivered at scale.
Senator Hundley and other critics also said the bill did not include sufficient consumer protections for ratepayers who would carry upfront project costs in their utility bills while projects are developed, and questioned waste storage, decommissioning and long‑term liability arrangements for nuclear projects.
Outcome and next steps House Bill 10 07 passed the Senate on third reading with a vote of 36 ayes to 13 nays. The measure will now return to the House; supporters and opponents both signaled expectation of more oversight language or negotiated safeguards during conference discussions.
Votes at a glance House Bill 10 07 — Energy / SMR incentives and large‑load protections: passed on third reading, roll call 36 ayes, 13 nays.
