Lebanon Utilities evaluates alternative wastewater outfalls for 25 MGD LEAP district amidst reservoir pushback

Lebanon Utilities evaluates alternative wastewater outfalls for 25 MGD LEAP district amidst reservoir pushbackThe Indiana utility is conducting an anti-degradation study and expanding its environmental team as it reconsiders where to discharge treated effluent from the state-backed industrial mega-site.

Lebanon Utilities is managing the water and wastewater infrastructure for the state-backed LEAP project, which includes major tenants like Eli Lilly and Meta.

Public opposition centers on a preliminary plan to discharge 25 million gallons per day (MGD) of treated wastewater into the Eagle Creek Reservoir, with residents citing concerns over phosphorus levels and algae blooms.

Utility officials confirmed that no final decision has been made on the outfall location and that construction will not begin until at least 2028.

The utility is currently conducting an anti-degradation study and hiring an environmental scientist to evaluate multiple discharge models.

Lebanon Utilities is actively re-evaluating its wastewater discharge strategy for the LEAP industrial mega-site, confirming at a March 4, 2026, board meeting that no final decision has been made regarding the outfall location for up to 25 million gallons per day (MGD) of treated effluent. The utility has been tasked with executing water and wastewater infrastructure plans for the LEAP project—initiated by the Indiana Economic Development Corporation (IEDC)—which has already attracted major developments from Eli Lilly and Meta. As part of a water supply agreement with Citizens Energy Group (CEG), Lebanon Utilities is attempting to provide "watershed balance" by returning treated wastewater to the ecosystem to offset the water drawn for the district. However, a preliminary plan to discharge the 25 MGD of treated wastewater into the Eagle Creek Reservoir has faced significant public pushback. During the meeting, residents from neighboring Pike Township and Indianapolis argued that the effluent volume could exceed the creek's average natural flow rate of 30 cubic feet per second during dry months. Commenters raised concerns that residual phosphorus from the wastewater could trigger severe blue-green algae blooms, negatively impacting recreation and property values. Several residents suggested rerouting the wastewater to the Dig Indy deep tunnel system in Indianapolis, which they estimated would require only five additional miles of piping. In response, utility officials and representatives from Wessler Engineering clarified that the reservoir outfall is not finalized. The Eagle Creek location was initially chosen for modeling purposes because it represented a "worst-case example" that would force the utility to design its treatment plant to meet the most stringent preliminary limits set by the Indiana Department of Environmental Management (IDEM). "There has been no formal decision on where the water will be discharged," stated Katie Castro Jackson of Wessler Engineering. "We are evaluating multiple locations. We're going back to models, to studies, and all in response to the public comments that we've received." To advance the planning phase, Lebanon Utilities is currently conducting an anti-degradation study and is in the process of hiring an environmental scientist to further evaluate alternative outfall locations and their impacts on the watershed. Officials noted that the project is still in a long-term planning stage, with construction on the wastewater return infrastructure not expected to begin until 2028 at the earliest.