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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
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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 bseitz@lg.in.gov www.energy.in.gov