The need for power for AI data centers coming into Indiana prompted a lot of bills this session. Lawmakers were also concerned with all things water — from long-haul water pipelines to stormwater running off of construction sites.
Here’s a rundown of some of the bills that passed and failed during this year’s legislative session.
A list of all of the bills proposed during the 2025 session is on the Indiana General Assembly’s website. Or check out our bill tracker.
What passed:
HB 1007: Energy generation resources
Multiple Indiana utilities are considering building new power plants to serve AI data centers — which need a massive amount of electricity to run. Among other things, the bill requires utilities that want to close a coal plant to replace it with the same amount of energy capacity or more. That could put cleaner energy sources at a disadvantage and limit some creative ways utilities can meet that demand without adding new power plants. If Indiana orders a utility to keep a coal plant open, the utility could get approval to charge ratepayers to continue running the plant.
The bill also gives tax credits to companies that manufacture small modular nuclear reactors in Indiana. So far, none of the small nuclear plants proposed in the U.S. have been built and many of them have gone billions of dollars over budget.
Technically this bill is not yet law, it’s still awaiting Gov. Mike Braun’s signature. He has until May 6 to sign, veto or allow the measure to take effect without his signature.
SEA 423 and SEA 424: Small Modular Nuclear Reactors (SMRs)
Under these laws, utilities can pass along some of the costs of developing small modular nuclear reactors to their customers — even if the plants never get built or completed.
So far, none of the ones in the U.S. have. One federally-funded project was canceled in 2023 after more than a decade of work and nearly $9 billion in costs. Opponents to the law worry it will drive up electric bills significantly.
These measures were two of many proposals from state lawmakers this year to ensure AI data centers coming to Indiana have the massive amount of power they need. SEA 423 allows utilities to share the cost with third parties like tech companies, universities or other utilities.
SB 425: Energy production zones
This bill lets utilities bypass some local laws to build new power plants on the site of old ones. Communities that host coal plants set to retire are likely to lose jobs and tax revenue. Building something like a small nuclear plant in the same spot could help offset that loss and maybe save utility customers money. The bill specifically exempts wind and solar farms from bypassing local zoning laws. For years, renewable energy companies have said the patchwork of local ordinances has made it difficult for them to build in Indiana.
The measure is still awaiting Governor Braun’s signature. He has until May 6 to sign, veto or allow the measure to take effect without his signature.
SEA 422: Advanced transmission technologies
Under this law, utilities have to consider “advanced transmission technologies” in their long-term plans. That’s technology that can be added to things like power lines to make them more efficient and reduce congestion. Supporters of the law also hope it will make electric bills cheaper for utility customers.
HEA 1037: Storm water management
This law bans local governments from making stricter laws for stormwater that runs off of construction sites. Supporters say it will streamline those laws across the state — making them easier to navigate for developers.
Stormwater administrators and environmental groups have expressed concerns about the law. They worry not being able to tailor local laws to their communities would lead to more polluted waterways and more flooding. It was amended to allow local governments to enforce obvious stormwater violations on lots less than an acre — which aren’t regulated by the state.
SEA 178: Natural gas and propane as a clean energy resources
The law defines natural gas and propane as clean energy sources. Its author said it would allow Indiana to use federal clean energy grants to fund natural gas and propane projects. But environmental groups have said that's unlikely — because most federal grant programs don’t define it that way. They also say that — while natural gas is less dirty than coal — it still shouldn’t be considered “green.” Natural gas produces methane — a greenhouse gas 28 times more potent than carbon dioxide.
SEA 457: Carbon dioxide sequestration
This law allows Indiana to issue permits and collect fees for storing carbon dioxide underground. It aims to ensure the state has money to fix any issues that arise on CO2 storage sites. A state law passed two years ago said the Indiana Department of Natural Resources would be liable for them after companies stop injecting CO2.
Residents living near some proposed carbon storage projects worry pipelines carrying the CO2 could explode or leak — threatening public safety and drinking water. There's also the potential injections could cause earthquakes. The only one of these large CO2 storage sites currently operating had a leak last year.
The state wouldn’t collect fees or require a permit for the CO2 pilot project with Wabash Valley Resources.
The law aims to address concerns over large water transfers like those planned to serve the controversial LEAP industrial district in Lebanon. It requires companies creating long-haul water pipelines to get a certificate from the Indiana Utility Regulatory Commission. If that big water transfer happens between two different water basins — they also have to get a permit from the Indiana Department of Natural Resources. Existing water transfers are exempt.
Residents in states like Connecticut have sued their drinking water utilities for not doing more to protect them from harmful chemicals like PFAS. This law aims to protect water utilities from such lawsuits — and the customers who ultimately pay for them.
PFAS are a group of human-made chemicals found in non-stick and stain-resistant products — including pans, carpets and fast-food wrappers. Among other things, exposure to them has been linked to kidney cancer, problems with the immune system and developmental issues in children.
State water utilities have said they don’t make water quality laws, they just adhere to them — so it's unfair for them to face legal action. A consumer and environmental advocacy group worries this law won’t allow residents to sue their utility if their drinking water is polluted.
SEA 211: Clean water Indiana program
This law allows funds from the Clean Water Indiana program — which usually helps landowners reduce water pollution — to also be used to get rid of invasive plants. Among other things, they can crowd out native plants and reduce species diversity.
HEA 1380: Supplemental fee for electric vehicles
Hoosiers who own electric motorcycles wouldn't have to pay the electric vehicle fee under this law. The fee helps pay for road repairs that EV owners don't pay because they don't pay the gas tax when they buy gasoline.
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What failed:
HB 1417 and SB 32: Prevention of chronic wasting disease
Both of these bills would have looked into using genetics to make Indiana's deer more resilient to chronic wasting disease. It’s an incurable illness in deer that causes neurological problems, much like mad cow disease.
In the Senate’s version of the bill, deer farmers would have gotten a permit to breed deer for genetic markers that make them more resilient to chronic wasting disease and sell them to landowners. The House version would only have required the DNR to test deer for those genetic markers. While deer farmers were in favor of the bill, Indiana sportsmen and the Indiana Wildlife Federation had concerns the measure would have actually made the disease more widespread in the state. Neither of these bills got past committees in the chambers where they were introduced.
SB 254 and HB 1127: Biofuel tax credits
These bills would have provided tax credits to gas stations that sell higher blends of biofuels like ethanol — as well as credits for companies that make and blend the fuel. Indiana is one of the top states for ethanol production and more than 40 percent of the state’s corn crop is used for it. Corn growers were in favor of the bill, but environmental groups say the land use and fermentation process involved in making ethanol aren’t very green. Neither bill got a hearing in the House Ways and Means Committee.
SB 14: Vegetable gardens and livestock
The measure would have prohibited cities and counties from banning vegetable gardens and livestock on private property. Local governments could still have imposed some restrictions on things like the number of livestock in a residential area. The bill never received a hearing in the House Local Government Committee.
SB 307: Environmental waste inventory and grant program
The legislation would have directed the state to create an inventory of all the brownfield sites in Indiana — those are properties that are hard to redevelop because the land is polluted. It never received a hearing in the House Environmental Affairs Committee.
SB 310: Feasibility study of energy audit of state government campus
Under this bill, a contractor would have been hired to conduct an energy efficiency audit of the capitol and the government buildings attached to it. The audit would have helped find ways Indiana could cut down on electric bills at the Statehouse. The bill didn’t get a hearing in the House Ways and Means Committee. Its author, Sen. Andy Zay (R-Huntington), proposed a similar bill in 2023.
The legislation would have imposed stricter, statewide penalties for illegally dumping trash. It would have made the violation a class C misdemeanor in some cases. The bill didn’t get a hearing in the Senate Corrections and Criminal Law Committee.
Rebecca is our energy and environment reporter. Contact her at rthiele@iu.edu or follow her on Twitter at @beckythiele.