NIPSCO Water Permit Sparks Kankakee River Concerns in Indiana
NIPSCO's draft water permit, which would allow the company to mix wastewater from a coal-fired power plant, a new gas plant, and an Amazon data center before discharging it into the Kankakee River, is facing strong opposition from Jasper County residents. Opponents cite concerns about public health, property values, and potential toxic chemical discharge. The Indiana Department of Environmental Management is currently reviewing the application and has scheduled a public hearing.
A draft water permit from NIPSCO that would combine wastewater from its R.M. Schahfer Generating Station in Wheatfield, Indiana—including existing coal operations, a new gas plant, and an incoming Amazon data center—before discharging it into the Kankakee River, is sparking significant pushback. Residents of Jasper County, particularly Kankakee Township, along with environmental groups, express concerns over potential negative impacts on health, property values, and local waterways.
Key figures opposing the permit, such as Barb Deardorff and environmental advocates Ben Inskeep of Citizens Action Coalition and Ashley Williams of Just Transition Northwest Indiana, highlight the complexity of the 150-page application and the unprecedented mixing of diverse waste streams. They argue this could lead to the discharge of toxic chemicals like mercury, arsenic, and lead, and make pollution tracing difficult. Concerns also extend to the scale of water withdrawal, with the Amazon data center and gas plant expected to draw over 34 million gallons of water daily from the Kankakee River on peak days.
The wastewater mixing plan is directly connected to Amazon Web Services' $7 billion "Project Rise" data center campus, which was unanimously approved by Jasper County Commissioners in June 2026. Amazon committed significant upfront and annual payments, alongside funding for local water infrastructure, projecting over $1 billion in local tax revenue. Despite developer assurances that the campus primarily uses air cooling, NIPSCO's continued operation of aging coal units due to federal emergency orders, and the associated financial burden on ratepayers, add complexity to the environmental review.
Critics also point to NIPSCO's history of five discharge permit violations since October 2020 and the lack of a dedicated wastewater treatment plant at the data center site itself. The Indiana Department of Environmental Management (IDEM) is currently weighing the application and will host a virtual public hearing on October 7, with written comments due by October 22.