During the years that coal ash disposal was unregulated, the utilities disposed of it in the least expensive manner for them. These least expensive methods caused environmental damage, which is a cost to the broader community in contaminated water, dust hazards, and health effects. The utilities were “externalizing” the costs associated with their waste.

Unregulated, inexpensive coal ash disposal included storing it in unlined landfills or using water to sluice it into unlined ponds, practices that led to extensive groundwater contamination. As the ash ponds filled, the excess water was released into nearby rivers or lakes. That excess water was contaminated by the coal ash, so coal ash contaminants were also released into rivers and lakes.

Environmental Protection Agency

The U.S. put the first requirements for coal ash disposal in place in 2015 with the Coal Combustion Residuals Rule (CCR Rule). It included requirements for safe disposal, monitoring groundwater, cleaning up contaminated groundwater, and transparency. As a result of the CCR Rule, utility companies in Indiana have CCR web pages where they report on their coal ash compliance. Unfortunately, the 2015 CCR Rule had exemptions that left about half of the nation’s coal ash unregulated.

In 2024, the CCR Rule was updated to end most of the exemptions, close loopholes, and bring most coal ash under the same requirements. HEC and partner organizations provided detailed feedback to EPA during the process to update the rule.

Indiana has had rules regarding solid waste disposal since the mid-1990’s and some of them applied to coal ash landfills. Indiana had requirements for coal ash ponds only when they were closing.

In 2021 the Indiana General Assembly passed SEA 271 which required the Indiana Department of Environmental Management (IDEM) to establish a state permit program for coal ash.

State coal ash permit programs are allowed under a law passed by Congress in 2016 – Section 2301 of the federal Water Infrastructure Improvements for the Nation Act (WIIN Act) – as long as the state program is at least as protective as the federal CCR Rule.

After IDEM released its draft permit program, the General Assembly passed HEA 1623 in 2023 forcing IDEM to rewrite the program and include only requirements that are in the federal CCR Rule.

HEA 1623 conflicted with SEA 271. SEA 271 required a permit program but the federal CCR Rule has no provisions about permits. However, HEA 1623 prohibited having any provisions in the Indiana rule that weren’t in the federal rule. IDEM worked with the Attorney General to resolve the conflict.

The latest draft of the Indiana state coal ash rule is in the works and will likely be finalized in 2025.

IDEM presented this draft to the Indiana Environmental Rules Board in December, 2024.  The Rules Board voted to preliminarily adopt the draft coal ash rule with the caveat that IDEM make certain changes. HEC and several partner organizations testified at the Rules Board hearing and submitted written comments.