Energy Policy in the Daniel’s Administration Indiana Energy Group
Agenda • Outline of Energy Policy in the Administration • Indiana Energy Group’s Strategic Plan • The Role of Coal in the Strategic Plan • Summary
Energy Policy in the Administration • SEA 378-Clean Indiana Energy Act • Coal Gasification Credits • Biofuels Credits • New Commitment to homegrown energy
SEA 378-Clean Indiana Energy Act • The Daniels-Skillman administration wanted to showcase their commitment to energy. • This bill was a great example of bi-partisanship. • Not one “no” vote was registered in the legislature.
Coal Gasification Credits • Credits for use of IGCC Technology - Credits start upon production, up to $75M on a near $1B investment • Just the beginning of this administration’s commitment to coal production and clean coal technologies in Indiana
Biofuels Credits • Credits upon production of fuels • Ethanol and Soy Biodiesel • Up to $5M in credits with a $20M cap • Credits available to retailers and blenders
New Commitment to Homegrown Energy • Using resources available to us here in Indiana one of which is coal. • Keep jobs, capital, and reliable energy sources in Indiana. • Rely less on foreign markets • Fuels for industrial and residential use beyond our traditional fuels like natural gas and petroleum.
Indiana Energy GroupStrategic Plan • Long term strategic plan upon request of Lt. Governor. • First comprehensive energy plan in many years. • Three Phases to the Strategic Planning Process
Phase One • Gathered together information from state agencies with particular roles in energy issues. • IDEM: environmental, air quality, non-attainment, citing issues • DNR: land use, reclamation, native oil and gas use • IEDC: economic development factor for energy, 40% of energy in manufacturing, energy costs and business development, attracting companies that commercialize energy processes • ISDA: biofuels, biomass, bio-energy from Indiana’s abundance of agricultural waste and sources of grain for ethanol and soy diesel • IURC: regulatory, citing of new electric generation, need for new megawatts • OUCC: consumer issues, high winter heating bills, rising utility costs • Governor’s Office: John Clark, senior advisor to energy and economic development • Indiana Energy Group: controls DOE funds for grant opportunities and given the role to head the strategic plan
Phase Two • Public Forums to gather input • Seymour • Vincennes • Fort Wayne • Fowler • Indianapolis
Phase Three • Gather Input from Energy Stakeholders and Partners with Energy Interests • December 14th • December 21st • January date TBA
Coal’s Role in the Strategic Plan • Coal as an economic development tool • 50% of coal used in electric generation does not come from Indiana • 75% of our energy capital leaves the state, much of this due to petroleum use but coal factors in as well. • New Technologies • Partnership between Governor, Dept. of Labor, and Vincennes University’s training program. • Southwest Indiana
Unwrapping the Package • Coal and Oil viewed as dirty packages of carbon based materials • Oil has been “unwrapped” or refined to make many products including gasoline, propane, naphta, butane, plastics… • Coal has simply been burned instead of “unwrapped” and refined. • The future of coal use beyond electric generation… • THE VALUE IS IN THE GAS • Coal refining means more jobs
What needs to be done? • Expand on the Pioneering spirit in coal use development. • Joining Illinois in partnership with the FutureGen project. • Pursue the $1B grant to build the nation’s first non-emission coal fire plant • Decrease the costs of using clean coal technologies. • Expand the value added nature of the by-products • Continue development of CO2 sequestration and take care of eminent regulations that will be put on CO2 • Educate citizens on the new mining techniques and the possibilities of a high tech, high wage career in mining.
Summary • Coal gas, biofuels, bio-energy, conservation • Homegrown fuels expand use possibilities • Retain more energy capital in Indiana • Encourage all sectors from residential to industrial to look at “negawatts”, as well as megawatts • Not necessarily the least cost solutions, but the most competitive….INDIANA BASED SOLUTIONS.
Thank You! Brandon Seitz, Director Indiana Energy Group email@example.com www.energy.in.gov