Mutz says Lugar plan outshines other energy bills

http://www.indystar.com/article/20101012/OPINION01/10120313/Lugar-plan-outshines-other-energy-bills

Written by John Mutz

It's no secret that Indiana's economy is struggling to regain its footing. Like the rest of the country, we've lost a lot of jobs and our unemployment rate is higher than it has been in many years.

What may be surprising to some, though, are the great strides our state is making in the area of clean energy industries during these difficult economic times.

Relatively quietly, Indiana is making a name for itself as an outstanding place to manufacture electric cars and the batteries that run them, not to mention solar panels and parts for wind turbines.

Gov. Mitch Daniels and his team have rightly begun to focus on this area of opportunity for Hoosiers. Over the last year, Abound Solar in Tipton, Wind Stream Technologies in New Albany, EnerDel in Central Indiana, Anderson-based Bright Automotive, Brevini USA in Muncie, and Elkhart's Think North America have made headlines for creating jobs and giving our economy a much-needed boost.

A number of well-established companies are also having a huge impact.

Remy International in Pendleton just entered a partnership to bring a new-generation electric drive system to market. Cummins just received more than $38 million in federal grants to develop a highly efficient and clean diesel engine. Allison Transmission's new hybrid drive manufacturing plant in Indianapolis will employ 100 when it reaches full production.

Duke Energy is investing more than $2.8 billion into its coal gasification plant, which will burn a cleaner gas to produce power.

With these innovations, we're ahead of the clean energy curve, but now we need some changes to federal policy to remain there. Energy independence should be a priority in Washington. So far the House has passed a bill, and the Senate has not reached a consensus on climate change energy legislation.

One bright spot has been the fact that Indiana Sen. Richard Lugar is among those who believe that the country needs to take steps to reduce our dependence on foreign oil. He's filed a bill that will cut greenhouse gas emissions by 20 percent, or about 1.6 billion metric tons -- the equivalent of taking more than 240 million cars off our roads. His bill is a balanced approach that provides a reasonable step toward this goal, and it provides economic incentives that will support the growing Indiana clean energy business.

The evidence that clean energy leads to good, high-paying jobs for Hoosiers is clear. However, if you need more evidence consider this: China vaulted past Denmark, Germany, Spain and the United States last year to become the world's largest maker of wind turbines and is poised to expand even further. In addition, the Chinese have emerged as the world's largest manufacturer of solar panels and are pushing hard to build nuclear reactors and the most efficient types of coal power plants.

No matter what the case, we do need additional legislation at the federal level. It is better to consider an approach that doesn't threaten Hoosier jobs, such as cap-and-trade, but still moves us toward the goal of energy independence. Lugar's bill does this.

Mutz is a consultant and private investor, former two-term lieutenant governor of Indiana, former president of Lilly Endowment and former president of Cinergy/PSI Indiana.

This article brought to you by the Indiana Renewable Energy Association.