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.

Solar panel manufacturer may open in Tipton County two years earlier than

by Ken de la Bastide and Daniel Human, Kokomo Tribune Staff Writers

TIPTON - The Colorado solar panel manufacturer planning to move into the never-used transmission plant in Tipton County could come to Indiana about two years sooner than originally expected, company and county officials said Wednesday.

Abound Solar Inc. plans to close Nov. 16 on its purchase of the former Getrag Transmission LLC plant at the corner of U.S. 31 and Ind. 28, said company spokesman Mark Chen.

The company originally planned to have created 850 jobs by 2013, but hiring could now begin as soon as late 2011, Chen said.

The solar panel manufacturer is moving forward with its plans more quickly to keep up with the increasing number of orders it is receiving, Chen said.

Abound hasn't finished mapping out how many of the 850 jobs it would initially create or when operations would begin in Tipton, he said.

President Barack Obama announced in July that Abound Solar would receive a $400 million loan guarantee from the U.S. Department of Energy to expand its operations in Colorado, then purchase the never-used, approximately 800,000-square-foot factory.

The company had one manufacturing line in place before the loan at its plant in Longmont, Colo.

The Department of Energy will give Abound $50 million to put in a second line and another $50 million for a third in Longmont. The company will then receive $300 million to install eight lines in Tipton.

Tipton County Commissioner Jane Harper said Abound exercised its option to purchase the building from a trust established in 2009 by the U.S. Bankruptcy Court in Michigan after Getrag filed for bankruptcy protection.

The company has entered into a binding agreement with the trust, Harper said.

Abound is purchasing the building from the trust for $25 million with Tipton County providing $13 million through Tax Increment Financing to lower the purchase price, she said.

The proceeds of the sale will go to contractors who were not paid for work done when Getrag filed for bankruptcy.

"This is the best deal for Tipton County," Harper said of Abound purchasing the facility. "It fits best with the community and our green technology.

"With our predominant agricultural base, the establishment of Abound Solar at the crossroads of our community and three wind-energy companies with plans to place wind farms in our county, we can create a unique marketing opportunity in selling Tipton County and its products as the 'green' capital," she said.

The Indiana Economic Development Corp. offered Abound Solar Inc. up to $11.85 million in performance-based tax credits and $250,000 in training grants based on the company's job creation plans. The IEDC will also provide work force and ombudsperson assistance.

Tipton County has approved additional incentives, including tax abatements for the company along with TIF money to the trust that owns the building.

The Getrag plant was being constructed as a joint venture between Chrysler and Germany-based Getrag. The plant was expected to provide more than 1,000 jobs. But soon before construction ended in 2008, Chrysler pulled out of the agreement and filed a lawsuit against Getrag. Getrag then filed for bankruptcy and backed out of the project, leaving the plant empty since.

This article brought to by Indiana Renewable Energy Association.