On April 10, Indiana Governor Mike Braun issued two executive orders addressed to energy policy. In this article, Taft partners Teresa Morton Nyhart and Kay Pashos summarize this action below, along with a brief summary of President Trump's executive order issued earlier in April.
The first, Executive Order (EO) 25-49, is titled "Encouraging Practical Approaches to Climate and Energy Solutions by Rejecting Social Cost of Greenhouse Gases and Climate Action Plans."1 This EO restricts state agencies from developing state plans, regulations, fees, or other pricing mechanisms for greenhouse gases. This EO also addresses barriers to beneficial environmental projects, state agencies' use of social costs of greenhouse gases in regulatory or cost-benefit analyses, and the elimination or reduction of federal climate policies that are harmful to Indiana.
The second EO, 25-50 is titled "Ensuring Economic Opportunity and Indiana's Energy Future by Supporting Life Extensions for Coal Energy Generation and Assessing Natural Gas Supplies."2 This EO requires an evaluation of every remaining coal-based electric generation plant in the state and a re-evaluation of each unit to consider extending the life of the plant.
EO 25-49
EO 25-49 states that the State of Indiana and stakeholders have identified numerous ways in which one-size-fits-all federal climate policies result in worse economic and environmental outcomes for Hoosiers. This EO points to actions by the Trump administration to revisit climate mandates and emphasizes the State of Indiana supports homegrown strategies that align with the unique economic and environmental needs of Hoosiers. This EO states that access to affordable, reliable, and diverse sources of energy, including coal, oil, gas, nuclear, and renewable sources, enables Hoosiers to achieve their full potential.
EO 25-49 notes that Indiana has successfully challenged heavy-handed federal mandates related to greenhouse gas emissions and adds that the Indiana Code does not authorize state regulation or taxation of emissions from greenhouse gases. In addition, the EO states that federal environmental laws, including the Clean Air Act, were not intended to address greenhouse gas emissions. The EO points out that the state has reduced energy-related carbon dioxide emissions by more than 30% since 2007 and adds that this is far more than other states like California. The EO notes that new or modernized facilities are likely to be cleaner, more efficient, and result in lower greenhouse gas emissions. The EO asserts that even without authorization by elected officials, federal or international bodies may seek to ban, regulate, or tax activities associated with greenhouse gas emissions, including sectors like power generation and other activities that are critical to Indiana's economy in the future.
EO25-49 directs that state agencies shall not develop or issue state plans, regulations, fees, or other pricing mechanisms for greenhouse gases without explicit authorization from the Indiana General Assembly and the Governor. This includes any action pursuant to federal programs. This EO also directs state agencies to identify and address regulatory and other barriers to environmentally beneficial projects that will reduce emissions in Indiana, enable greater conservation, and improve resiliency for all Hoosiers. The EO identifies unnecessary red tape for building new or retrofitting existing facilities as an example of a barrier.
EO25-49 prohibits state agencies from incorporating a social cost of greenhouse gases, including carbon dioxide or methane, into regulatory or cost-benefit analysis, rulemaking, permitting, enforcement, or other state activities. The EO encourages state agencies to ensure that the value of affordable, reliable energy is reflected in their rulemaking activities and economic analysis. The EO directs state agencies to identify and pursue opportunities to eliminate or reduce harmful federal climate policies that are harmful to Indiana through comments, letters, or legal challenges.
EO 25-49 directs state agencies to revisit and consider, as appropriate, rescinding climate action plans developed under federal programs that are inconsistent with this order by Dec. 31. State agencies subject to this EO are also required to provide a written report to the Governor and the Legislative Council by Dec. 31, detailing actions taken in response to this EO.
EO25-50
EO25-50 explains that demand for electricity in Indiana is increasing due to data center deployments, reshoring of manufacturing, and greater consumer electrification. The EO notes the roughly 5.7 gigawatts of coal electricity generation retired in Indiana during the period 2012 to 2024 and the 9+ gigawatts of coal electricity generation projected to retire or transition to another fuel source during the period 2025 to 2038.
The EO states these closures are nearly all due to the financial burden of meeting U.S. Environmental Protection Agency regulations. The EO states that Indiana has made significant progress in air, land, and water quality. The EO also asserts that access to reliable electricity is at risk if changes are not made because the North American Electric Reliability Corporation has identified Indiana as falling below established resource adequacy criteria in the next five years.
This EO states that 1) every investor-owned regulatory utility in the State of Indiana has announced plans to close coal plants and either refuel with natural gas or build natural gas generation; and 2) Indiana needs more baseload, dispatchable energy generation to provide for existing energy needs and to serve growing demand.
The EO points to the Trump administration direction to its agencies 1) to identify regulations and other agency actions that "impose an undue burden on the identification, development, or use of domestic energy resources" with particular attention to coal; and 2) to "expand all forms of reliable and affordable energy production ...."
This EO, in accordance with the National Energy Emergency declared by the Trump administration on Jan. 20, directs the Secretary of Energy and Natural Resources to work with the Indiana Utility Regulation Commission (IURC) and the Indiana Office of Energy Development to evaluate every remaining coal-based electric generation plant in the state and re-evaluate each unit to consider extending the life of the plant. The IURC is directed to assess coal plant depreciation to ensure that Hoosier ratepayers are not burdened with paying for stranded assets because of overly aggressive regulation aimed at closing coal plants. Additionally, the EO requires the collection of information on an annual basis regarding the electricity industry (i.e., electricity demand, dispatchable electricity, and natural gas supply). The EO directs the Secretary, the IURC, and the electricity industry to encourage an additive energy strategy rather than just replacing energy generation and to identify ways to make energy transitions more reliable and affordable for Hoosiers. Finally, the EO directs the Secretary to provide regular updates and recommendations to the Governor, on an annual basis, outlining the implementation of this EO as well as actions and proposed initiatives related to coal electricity generation in Indiana.
Trump Administration Executive Orders on Coal-Fired Electricity Generation
Earlier in April 2025, President Donald Trump signed four executive orders focused on coal-fired power plants. Key directives in these orders are as follows:
- Allowing older coal-fired power plants, scheduled for retirement, to continue operating, citing rising electricity demand from data centers, artificial intelligence, and electric vehicles.
- Directing federal agencies to repeal regulations that are discriminatory against coal, including relaxing environmental rules like the Mercury and Air Toxics Standards, and granting a two-year compliance extension to 47 plants.
- Lifting the existing moratorium on coal leasing on federal lands, expediting permits for new coal projects, and prioritizing coal mining to increase production, particularly in areas like the Powder River Basin.
- Investigating state-level climate policies that restrict coal use and promoting coal exports and research into using coal for AI data centers.
- Designating coal a "mineral" under a prior executive order to enhance its strategic importance and support energy security.
Footnotes
1. https://www.in.gov/gov/files/EO-25-49.pdf
2. https://www.in.gov/gov/files/EO-25-50-.pdf
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
