Committee approves IDEM-requested changes to state nuclear permitting law over objections about lost state oversight

The Senate Utilities Committee voted 7–3 to advance SB 258, agency language from the Indiana Department of Environmental Management (IDEM) that would repeal outdated state nuclear permitting provisions and align state law with federal jurisdiction over radiological safety.

Alex Goodnight, deputy legislative director at IDEM, told the committee SB 258 removes provisions preempted by federal law and a 1983 U.S. Supreme Court decision and updates obsolete references to federal agencies. "SB 2 58 addresses a fundamental and unnecessary barrier to nuclear innovation in our state by removing provisions that are preempted by a 40 year old US Supreme Court decision," Goodnight said, adding IDEM will continue to coordinate with the U.S. Nuclear Regulatory Commission on environmental feasibility reports and permitting for air, water and land impacts.

Supporters — including the Office of Energy Development and several utilities — said the bill clarifies that radiological safety and licensing are federal responsibilities under the Atomic Energy Act and argued the change would remove redundancy and help attract nuclear investment, including small modular reactors. Brian Bergsmouth (Indiana Michigan Power) described the intensive NRC oversight on radiological operations and said state processes would continue to address air, water and waste environmental permits.

Opponents including the Hoosier Environmental Council, Citizens Action Coalition, and Indiana Conservation Voters argued the bill reduces state-level oversight and public engagement. "SB 2 58 removes three essential functions of the public process at the state level — permitting requirements necessary for meaningful oversight, the authority of environmental rules boards to adopt radiation protection standards, and public participation in a process that can impact communities and the environment," Rebecca Tukulski of the Hoosier Environmental Council said.

Committee members debated the balance between federal preemption for radiological safety and the state’s role in non-radiological environmental protections and public hearings. Senator Andrea Hundley explained she voted no because she wanted additional state safeguards for the unique context of potential SMR deployment. The roll call recorded seven ayes and three no votes; the bill passed out of the committee.

The transcript records detailed exchanges about NRC oversight, rotating on-site NRC inspectors, and whether federal licensing standards for SMRs are fully established; proponents pointed to existing federal standards and coordination, while opponents emphasized transparency and the value of state-level hearings and rulemaking. The committee record shows the policy change passed the committee but includes substantive objections from environmental and consumer groups that the legislature removed or narrowed state-level review options.