Indiana is set to be among the first states to establish a comprehensive state permitting program for coal ash disposal and management. Last week, the Indiana Environmental Rules Board approved IDEM’s Coal Combustion Residuals (CCR) rule. With this approval, IDEM may prepare and submit Indiana’s CCR permitting program plan for U.S. EPA review and approval.
Coal combustion residuals, also known as coal ash, are a byproduct produced primarily from the burning of coal in coal-fired power plants. Coal ash can contain contaminants, such as mercury, which may negatively impact soil and water sources if not properly managed and contained.
IDEM’s CCR rule would require any facility in Indiana with CCR units defined by federal rule at 40 CFR 257, Subpart D, to obtain a state permit. The program includes requirements for design, operation, groundwater monitoring, closure, recordkeeping, and financial assurance. The full rule can be found here.
Currently, IDEM estimates that more than 100 CCR units across Indiana would require permitting under the proposed rule.
The U.S. EPA first established national coal ash standards in 2015, and Congress later created a framework for states to run their own programs with U.S. EPA authorization. IDEM began rulemaking in 2021 and revised its draft in 2025 to reflect the latest federal updates. With the ERB’s adoption of IDEM’s CCR rule, Indiana joins a small group of states pursuing their own federally authorized CCR programs. To date, just four states have received U.S. EPA approval.
Once submitted, the U.S. EPA has up to 180 days to review Indiana’s CCR permitting program before issuing a final decision.
The action complements recent work by the Indiana Rare Earth Recovery Council, which, in coordination with IDEM, adopted a report to guide the state’s efforts to become a national leader in extracting rare earth elements and critical minerals from coal byproducts.
Indiana’s Opportunity in Rare Earth Elements and Critical Minerals highlights Indiana’s significant potential supply of these materials from coal‑based waste and selected sedimentary rocks. Established by Executive Order 25‑62 issued by Governor Braun in April, the council will continue working with federal, state, academic, and industry partners to advance domestic production of these vital elements in Indiana.
According to the report, “With pilot projects, clear rules, and public-private collaboration, the state (Indiana) can lead the nation in securing critical minerals while supporting jobs, innovation, and energy security.”
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