“Let
Congress shall make no law respecting an
lishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
GBY NIKI KELLY INDIANA CAPITAL CHRONICLE
ov. Mike Braun has no patience for local governments upset by possible property tax cuts. He has told them directly they have grown too fast and it’s time to get back to reality. And, to his credit, he is doing the same thing with state government in the budget he proposed to lawmakers. I recently drilled down into Braun’s budget proposal to see how he is handling state finances. Starting with a wide-angle lens, he is growing general fund state expenditures only 2% the first year of the biennium and 1.7% in the second year. In comparison, expenses grew 4% this year under the budget passed by lawmakers
and signed by Gov. Eric Holcomb in 2023.
At the same time, Braun’s budget proposes almost $700 million in tax relief for Hoosiers: from eliminating taxes on retirement income and tips to a new tax credit for farmers and a sales tax holiday for school supplies.
So, how is he dealing with modest revenue growth and giving tax cuts at the same time?
The answer: he isn’t giving agencies and officeholders what they want.
SLASHING SPENDING
Braun flatlines the operational budget of the Secretary of State’s Office, Office of the Attorney General and Office of the State Comptroller. Also in the secretary of state’s budget, he reduces elec-
BY SAM CARPENTER
HOOSIER ENVIRONMENTAL COUNCIL
Rep. Ed Soliday, chairman of the Indiana House Utilities Committee, recently said on the House floor that we can all expect to see our utility bills increase. He’s right that long-deferred investments are needed to upgrade our energy grid and infrastructure. Indiana is at a critical juncture in deciding our energy future, but the degree of cost increases depends on the decisions we make now. That is why legislation to push funding for small modular nuclear] reactors’ (SMRs) design, permitting, and planning expenses onto rate payers is so misguided. Not only will these payments include a hefty profit margin for utilities, Hoosiers will see the extra expense on their utility bills even if projects are over budget, past due, or cancelled altogether.
SMR technology design is in its infancy and developers are working to attract venture capital to prove it can be commercialized. There are no SMRs currently operating in the U.S.; in fact, only three exist in the world. Indeed, even the concept of SMRs —building smaller reactors in an assembly-line fashion — remains theoretical and the costs associated with past nuclear failures are staggering. Consider the ambitious effort by Nuscale Power to deploy SMRs at the Department of Energy’s Idaho National Laboratory. Initially planned in 2016, the project was canceled six years later after its estimated cost ballooned from $5 billion to $9 billion. Utility customers in South Carolina are on the hook for $6 billion for a failed nuclear project planned by Dominion Energy and will be paying that off for 15 years, even though the project was scrapped and they will never benefit from the promised energy. Hoosier ratepayers cannot afford to lose billions in speculative funding.
Craig Piercy, CEO and executive director of the American Nuclear Society, said in a statement to the online publication Utility Dive, “Setbacks are to be expected when it comes to pioneering technology like small modular reactors . . .” This is a time for the Metas, the Microsofts, Googles and Amazons to invest — the mega businesses that can afford billions in
speculative venture capital, not Hoosiers that are struggling to just get by. Perhaps in coming decades an SMR manufacturing industry will grow into functional maturity and the cost of nuclear energy will become competitive with other carbon free sources, but that is not the case now. The U.S. Department of Energy’s Pathways to Commercial Liftoff report suggests advanced nuclear technologies can expect to cost $120 per megawatt hour (MWh) over their lifetime, however in reality, new nuclear power stations in the U.S. and Europe are coming in much costlier, not to mention five to 15 years late. By comparison the International Energy Agency shows total cost for solar and storage combined, will drop dramatically to around $50 per MWh over the next five years. To keep Hoosier electric bills low, there are a few actions Indiana can take in the next five to 10 years. For example, Indiana should maximize lower cost energy that comes from renewables paired with batteries or other types of energy storage. Managing the timing of demand, through what are termed “virtual power plants” is another way to minimize expenses. Steps toward energy efficiency and technology upgrades to our existing transmission grid are additional low-cost avenues to meet growing electricity demand. With just around 14% of our state’s energy coming from renewables today, we have a good runway to triple that output without risk to our grid stability. Future sources of continuous power that are still in the development stage, such as long-term energy storage, advanced geothermal and SMRs should not be charged to the ratepayer until their costs and outcomes are verified. In the meantime, we need a blended portfolio of advanced energy solutions while also transitioning away from dirty and costly coal.
Indiana stands at an energy crossroads, facing crucial decisions for its future. Embracing proven renewable energy sources today is essential to keep costs low for Hoosiers. There will be a time for ratepayers to benefit from new technologies, but the financial risk of SMRs today, are too great for everyday Hoosiers to bear.
tion security and voter education outreach funding. The Lieutenant Governor’s operational budget was also slightly reduced. And several programs that the office oversees will take hits. For instance, the Office of Community and Rural Affairs line item drops 28%; rural economic development was zeroed out and the Indiana Destination Development Corporation would see funding drop from $20 million a year in the last budget to $5.5 million a year. Under the Indiana Economic Development Corporation, the 21st Century Research and Technology Fund drops from $32 million to $20 million a year; the Manufacturing Readiness Grant is halved to $10 million a year; Braun wipes out programs for direct
flights as well as business promotion and innovation.
Large pots of money for site acquisition and deal-closing that used one-time excess dollars are not renewed. There are currently no capital projects in Braun’s budget — either for state facilities or higher education. As for agencies, he flatlined the Indiana Department of Health operational budget while also cutting a major public health initiative.
He dropped slightly the base budget for the Bureau of Motor Vehicles and Indiana Department of Environmental Management.
Some agencies will still see significant growth, such as the Indiana Department of Correction and Indiana State Police.
Most of the agency numbers I compared are operational base
budgets from the general fund and don’t include separate line items that might be covered by other direct appropriations or revenue streams.
But it’s clear Braun is following his own guidance to local governments and tightening the state’s belt. There is an important caveat about these cuts, though.
Right now, they are just numbers on a page — how those savings are achieved is key. Will Hoosiers see diminished service? Or, what opportunities will be lost by cutting taxes instead of investing strategically in education, health or other vital needs?
The Indiana House will now have its say, releasing its own version of the budget next week. We are far from the end, but Braun started the process with a bang.
BY JONATHAN SHARP ENVIRONMENTAL LITIGATION GROUP P.C.
Firefighting is a rewarding yet dangerous profession, as firefighters always put their lives on the line to protect communities.
But what most of them do not know is that an invisible threat quietly creeps into their gear, threatening their health in ways that were not initially understood: per and poly-fluoroalkyl substances (PFAS).
Often referred to as “forever chemicals,” these dangerous compounds are ubiquitously used in various products, including firefighting equipment.
Although they can effectively help fight flames, they are linked to devastating health effects, which most fire departments across the country are now grappling with.
The call for immediate action is now getting louder, and this is where the PFAS Alternatives Act becomes even more vital.
This legislation is expected to prioritize the transition to non-toxic turnout gear to pursue a safer future for all firefighters.
PFAS AND ITS DETRIMENTAL IMPACTS
PFAS are a class of human-made substances that were first introduced in the 1930s as an effective repellent to oil, water, and heat.
These properties made them standard in everything from nonstick cookware to waterproof fabrics.
By the 1970s, PFAS had then become an essential component of aqueous film-forming foam (AFFF) and later in turnout gear.
Yet this once-considered groundbreaking innovation is now seen as a public health crisis. PFAS are persistent in the environment and bioaccumulate, which means they remain in the human body for many years. These chemicals have also been
associated with severe illnesses, like kidney and testicular cancer, immune system suppression, and developmental issues.
The Environmental Protection Agency has already warned that there is no safe level of PFAS exposure, but firefighters continue to be subjected to it frequently.
They do not have a choice but to don their toxic gear, an inevitable occupational hazard they have to deal with.
INDIANA’S STRUGGLE WITH PFAS EXPOSURE
PFAS contamination is not new in Indiana.
The state houses 764 registered fire departments comprised of 72.5% volunteers and 9.6% career personnel.
Of these, 24 stations are in Knox County, with five of them specifically in Vincennes Township, where 60 first responders are prepared to serve.
Tragically, firefighters in these departments are regularly exposed to PFAS as they depend on toxic equipment when responding to untoward incidents.
For instance, Knox County alone has roughly 52% or 1.243 properties that are susceptible to wildfire over the next 30 years. Every time first responders tend to these emergencies, they use their PFAS-laden turnout gear and firefighting foam, causing them to get in contact with “forever chemicals.”
However, the issue extends far beyond the firehouse walls, as hazardous substances have already leached into the environment and affected water systems.
An analysis revealed that five significant utilities in Indiana, specifically those in Columbus, Elkhart, Logansport, Sellersburg, and Watson, have tested positive for PFAS contamination. And while no reports show Vincennes and Knox County confront
a similar concern, they still remain vulnerable, especially since they are just hours away from the impacted areas.
The risks are clear, but the Hoosier State has yet to enforce strict legislation pushing for safer firefighting, particularly regarding the use of non-toxic turnout gear.
At the federal level, the PFAS Alternatives Act—introduced by Congressman Brian Fitzpatrick in July 2023 — presents a tangible solution.
This bipartisan legislation would expedite the development of PFASfree turnout gear through stringent studies, material testing, and innovation.
For this shift to happen quickly, the bill apportions an annual $25 million budget from fiscal years 2024 to 2028 to develop safer substitutes and market them in no time.
In addition, the Act sets aside $2 million annually during the same period to fund training programs.
This effort will teach first responders critical knowledge on minimizing toxic exposure while the development of desired alternatives is underway.
Essentially, this law is not just about future innovations for Knox County and Indiana firefighters generally.
It is about an immediate solution to a rampant issue.
The technology exists, and with proper funding, the nation can make sure that no firefighter has to jeopardize their health while doing their job.
The PFAS Alternatives Act could be the legislation that finally bridges that gap.
Jonathan Sharp is the CFO of the Environmental Litigation Group P.C., a firm in Birmingham, AL, serving victims of environmental toxic exposure.