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State Budget Panel Approves $20M for LEAP Expansion as Lawmakers Question Nuclear Ambitions

Indiana's State Budget Committee voted 4-1 to advance $20 million for a 185-acre LEAP District expansion tied to an Oklo Inc. subsidiary, despite Democratic lawmakers' concerns that the deal could quietly open the door to nuclear power generation. IEDC officials said talks have focused on cancer-treatment isotopes, but the company's own description and contract language list nuclear power as a possible use.

State Budget Panel Approves $20M for LEAP Expansion as Lawmakers Question Nuclear Ambitions

A state budget panel voted 4-1 on Tuesday to approve $20 million toward expanding the LEAP District by 185 acres for a California company's medical isotope project, over objections from Democratic lawmakers who said the deal could become a backdoor for nuclear power generation near Lebanon.

The request from the Indiana Economic Development Corp. was listed on the State Budget Committee agenda only as "Project Phoenix." The land contract with a subsidiary of Santa Clara-based Oklo Inc. lists several possible uses, including "nuclear power generation, radioisotope production, research and development."

Mark Wasky, the IEDC's senior vice president, told the committee that discussions with Oklo have "focused on radioisotopes" — medications containing small amounts of radioactive material. But that did not satisfy lawmakers who noted Oklo describes itself on its website as an "advanced nuclear technology company developing fast fission power plants" that is also building "a domestic supply chain for critical isotopes and advanced nuclear fuel recycling capabilities."

"Can you look us in the eye and say that you're not going to come back over here and tell us that there will be nuclear generation discussion by that project that could feed into data centers into the LEAP project?" asked Sen. Fady Qaddoura, D-Indianapolis.

Wasky said nuclear power plants have not been discussed with the agency. "I can't say today whether or not those conversations may occur in the future, but we have not had any conversations about building power to serve the data center within the LEAP District," he said.

Oklo spokeswoman Bonita Chester said in an email that the company is considering the LEAP District for a potential "isotope production and processing facility focused initially on producing materials used in targeted cancer treatments." She added that Oklo is "still evaluating the project and engaging with the local community, and no final commitment to build in Indiana has been made." Chester did not address a question about whether electricity generation could occur at the site.

Wasky said any construction would still require approval from Lebanon city and zoning officials.

Rep. Ed DeLaney, D-Indianapolis, criticized what he called insufficient public disclosure about the proposal, saying the generic agenda label undermined trust in the IEDC. "This is not what people would call a confidence building method and that's a real problem," DeLaney told Wasky. "We need confidence in the IEDC."

A handful of LEAP District opponents protested outside the meeting, including Rachael Wolverton of Protect Pike Township, who carried signs opposing the development.

The LEAP District now spans roughly 6,700 acres and has drawn sustained public criticism as the state has poured about $1 billion into its development. The project is intended to attract high-tech businesses, including data centers that require substantial electricity.

The budget committee's approval drew support from Sens. Ryan Misher, R-Mishawaka, and David Niezgodski, D-South Bend, along with Rep. Jeff Thompson, R-Lizton, and State Budget Director Chad Ranney. Rep. Greg Porter, D-Indianapolis, voted no, joining Qaddoura and DeLaney, who are non-voting members of the committee, in objecting.

Porter said he saw no harm in waiting until the committee's December meeting to allow for greater transparency. "I'm asking that we stop this or slow it down," he said. "They can come back and look at it again."

The vote comes as Indiana has moved aggressively to attract nuclear energy. In October, Gov. Mike Braun signed a memorandum of understanding with an engineering firm aimed at bringing roughly 6 gigawatts of nuclear power to the state's grid.

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