On April 10, Indiana Governor Mike Braun issued an executive order addressing small modular nuclear reactors (SMRs) and signed into law legislation related to SMRs. Both of these governmental actions are designed to support the development of nuclear power in Indiana. In this article, Taft partners Teresa Morton Nyhart and Kay Pashos summarize these actions.

EO 25-48

Citing the importance of nuclear energy as a sustainable, clean, and reliable source of power to meet Indiana’s future energy needs, EO 25-48 directs the Secretary of Energy and Natural Resources to establish the Nuclear Indiana Coalition to advance the development of nuclear energy and SMRs in Indiana, as well as to attract nuclear energy industry supply partners to the state. The Coalition will consist of:

• Representatives from the Indiana Office of Energy Development, the Indiana Utility Regulatory Commission, the Office of the Utility Consumer Counselor, the Indiana Department of Homeland Security, the Indiana Department of Environmental Management, the Indiana Development Corporation, and any other relevant state agencies;
• Representatives from the nuclear energy industry, utilities, and academic experts; and
• Additional stakeholders deemed necessary to ensure robust collaboration and knowledge sharing to advance the state’s efforts in pursuing nuclear energy.

This EO directs the Coalition to:

• Explore federal programs that reduce the cost of deploying nuclear energy in the State of Indiana;
• Identify and address regulatory constraints and improve coordination with the Nuclear Regulatory Commission to streamline nuclear project development;
• Engage developers, utilities, and major electricity consumers to cultivate public-private partnerships for enabling nuclear energy development;
• Develop state-level policies to support nuclear energy deployment and assess the feasibility of nuclear power projects, including advanced nuclear technologies;
• Prioritize efforts to streamline any required permitting, including pursuing primacy on any federal permitting programs so that permitting can be completed within the State of Indiana; and
• Provide education and outreach on modern nuclear energy for specific communities deemed appropriate for developing nuclear energy generation and for all Hoosiers.

The Coalition is directed to provide regular updates and recommendations in the form of an annual report to the Governor, by Dec. 31 of each year, outlining the Coalition’s findings, actions, and proposed initiatives to advance nuclear energy in Indiana.

Senate Enrolled Act No. 424

SEA 424 authorizes the Indiana Utility Regulatory Commission to allow an electric utility to recover SMR project development costs before or during the development and execution of an SMR project. SEA 424 sets out certain filing requirements for the utility, as well as timelines for Commission action. Commission approval of the recovery of SMR project development costs may only be granted if the Commission finds that the project development costs are reasonable, necessary to support the construction, purchase, or lease of an SMR, and consistent with the Commission’s finding of the best estimate of such project development costs. If approved, the utility may recover 80% of its approved project development costs via a rate adjustment mechanism, with 20% of the costs deferred for recovery in a future rate case. If a utility’s actual SMR project development costs exceed the approved cost estimate, the utility may recover the increased costs only if it is found by the Commission to be reasonable, necessary, and prudent. If the SMR project is not completed or is canceled, the utility may recover its project development costs only if found to be reasonable, necessary, and prudent — but without a return on its investment unless the Commission also finds that the decision to cancel or not complete the project was prudently made for good cause; any federal grant or third party funds received by the utility will be used to offset the costs; and a return is appropriate to avoid harm to the utility or its customers.