Advancement of the infrastructure needed to support this transportation system within the state may be warranted. The Commission is staffed by the Indiana University Public Policy Institute (PPI), a research organization that is part of the IU School of Public and Environmental Affairs.
Support university research to develop new technologies and to research the economic and policy issues associated with producing advanced biofuels in Indiana
Electric Vehicles and Battery Technology
Indiana's government can further strengthen the EV and PHEV supply chains centered in the state through various incentives, such as tax credits and loan guarantees. However, the economic viability of designing and manufacturing batteries in the state is subject to variables such as energy prices and the availability of investment capital.
Energy Efficiency
Demand-side management and energy efficiency initiatives are included in the broad list of eligible technologies. Once completed, the state can monitor the effectiveness of the CPS in achieving demand management and energy efficiency goals and adjust policy as needed to ensure maximum effectiveness. The Indiana Office of Energy Development (OED) works to promote federal and state energy efficiency programs.
For example, the Conserving Hoosier Industrial Power (CHIP) grant program has provided $2.2 million for energy efficiency upgrades to commercial or industrial facilities. In addition to the above programs, there are also tax incentives at the federal level for energy efficiency. The state of Indiana could provide further financial incentives to support energy efficiency at the sector level.
For example, the state of Indiana could provide energy audits to help industry identify and implement an appropriate energy efficiency program. The state could also consider other types of incentives to encourage consumers to invest in energy efficiency improvements. The state pays the ESCO with savings from implemented energy efficiency measures (Molina et al., 2010).
Expand incentives for public university energy efficiency improvements
The main reasons why building owners do not make these improvements, which can pay for themselves in energy savings in relatively short periods of time, are a lack of internal capital and insufficient credit to obtain financing at reasonable interest rates. One approach is Property Assessment Clean Energy (PACE) programs, which tie financing for energy improvements to property assessments, allowing payments to be easily passed on to subsequent building owners. A different approach, called "bill financing," allows building owners to pay energy improvement credits on their utility bills.
State governments can demonstrate their commitment to energy efficiency by incorporating energy efficiency measures into state facilities. The most widely adopted measure is energy savings goals for new and existing state facilities. States often realize building renovations through Energy Savings Performance Contracts (ESPCs), in which a state enters into an agreement with an Energy Service Company (ESCO).
The order required the Indiana Department of Administration (DOA) to develop design standards for all new state buildings that include an analysis of the building's cost-effectiveness in achieving energy efficiency. State policymakers have an opportunity to lead by example by ensuring that best practices for energy efficiency are implemented in state government buildings. Policymakers could encourage public universities to make additional investments in energy efficiency by increasing bond limits or creating a mechanism, such as a revolving loan fund, to allow savings to be invested in additional energy efficiency projects.
Encourage energy efficiency for local public buildings
However, the cumulative total of these bonds cannot exceed $45 million for Ivy Tech Community College and $15 million for other institutions. The main advantage of these arrangements is that the building owner can participate in the project without a large upfront capital investment. The savings are used to pay for the investment over a period of no more than 20 years.
If the guaranteed savings are not achieved, the supplier must compensate the building owner for the difference between the guaranteed and cost savings.
Support research, development, and demonstration
Support university initiatives to develop relevant curricula
Track and evaluate the efficacy of energy efficiency programs. Strengthen programming if necessary
Carbon Capture and Storage
The pore system in each of these types of reservoirs is known as pore space. Because no law exists to clarify ownership, there can be many competing claimants for pore space. Given the legal uncertainties and increasing complexity, the State of Indiana may create a legal structure for pore space ownership including provisions defining the relationship of pore space owners to surface property and mineral property owners.
Indiana could grant ownership of pore space to surface property owners through legislation. Illinois, Kansas, Louisiana, Oklahoma, Texas, Utah and West Virginia recognize private property rights to pore space without identification of owners. The state could, through legislation or an amendment to the constitution, definitively declare that the property right in the pore space is public property and does not belong to the surface owners.
The state, therefore, would regulate the activities in the pore space for the protection of public welfare. This distinction probably implies that the state has, in essence, reserved ownership rights to pore space for public use. The state may offer an adjacency payment to surface property owners whose lands cover the relevant pore space.
Develop a regulatory framework for carbon dioxide pipelines
While this option would improve economic efficiency, it is unclear whether—if challenged—the courts would support this definition of property rights. That is, the courts may find it baffling to, on the one hand, support a public definition of a property (i.e., pore space), and, on the other, support a system that allows compensation for owners of surface land holdings above the designated property. . Due to federal preemption, states are limited to regulating the safety of intrastate pipelines.
The state could act as agents of the OPS and also participate in the supervision of interstate pipelines, although the OPS would remain responsible for enforcement efforts. Advocates a hybrid regulatory framework that combines elements of the current oil and natural gas pipeline frameworks. One of the advantages of this option is that it allows for policy in this area at the state level.
One of the advantages of this option is that it can realize the economies of scale more quickly, especially in supplying CO2 for EOR. Similar to Option 1, this approach would alleviate the difficult task of formulating an accountability framework for carbon storage. Once operators have met their post-injection/post-closure requirements, the risks and responsibility of the sites will transfer to the state.
Provide economic development incentives to private sector CCS implementers
A resource consists of reservoirs and seals of two general types: saline aquifers and oil and gas reservoirs. In addition, the assessment would generate estimates of operational parameters to guide operators, such as injection pressures, cloud size, and pressure perturbation geometry. Evaluate opportunities for enhanced oil recovery within and outside the country. A potential CO2 reuse or value-added aspect of CCS is the ability to use the captured CO2 for enhanced oil recovery (EOR).
The state has a mature oil and gas producing industry that has existed for more than a hundred years. Although industry has conducted flooding or secondary extraction on these fields, two-thirds of the original oil on site (OOIP) remains in the ground. Experiences in other parts of the country have shown that an additional 10 percent of the OOIP can be produced by improved recovery techniques using CO2 as a medium to increase the depleted pressure and decrease the viscosity of the oil in these mature oil reservoirs .
Approximately half of the CO2 injected for EOR purposes remains permanently in the reservoir while the other half is produced as oil and recycled back into the reservoir. Such assessment may be conducted by the Indiana Geological Survey in cooperation with the oil and gas production industry, utilities, and relevant regulatory entities. Pursuing such a direct role in pipelines or storage may run into political opposition as costs and risks are substantial and prevailing political preferences are to provide incentives rather than replace the role of the private sector.
SELECTED BIBLIOGRAPHY
Efficiency works: creating good jobs and new markets through energy efficiency. Center for American Progress. A CO2 storage supply curve for North America and its implications for the deployment of carbon dioxide capture and storage systems. IOGCC CCGS Task Force Phase II biennial review of the legal and regulatory environment for carbon dioxide storage in geological structures.
From EOR to CCS: The Evolving Legal and Regulatory Framework for CO2 Capture and Storage." Energy Law Journal. Key Components of a State-Level Statutory and Regulatory Framework to Support Carbon Capture and Storage (CCS) Deployment in the Midwest. That pouring out our soil: Facing the challenge of ill-defined property rights in underground pore spaces for carbon capture and storage." Forthcoming in George Washington Law School Journal of Energy and Environmental Law.
APPENDIX A. COMMISSION BIOGRAPHIES
He is a registered professional engineer and a member of the American Bar Association and the Indiana State Bar Association, Utility Law Section. He also works on water quality issues and is a former member of the Indiana Water Pollution Control Board. Since 2008 he has been director of the Center for Research in Energy and the Environment.
He has been with Indiana University since 1973, coming from the Environmental Sciences Division of Oak Ridge National Laboratory. He was the Principal Investigator of the Spallation Neutron Source Cold Neutron Spectrometer Development Team. Currently, Sokol is the director of the Low Energy Neutron Source and the first director of the Indiana University Energy Institute.
Jane Ade Stevens is the CEO and Executive Director of the Indiana Soybean Alliance, the Indiana Corn Marketing Council and the Indiana Corn Growers Association. He is currently a member of the Committee of the National Academy of Sciences on the Economic and Environmental Impacts of Biofuels. In 1983, Kent was named the Indiana Conservation Farmer and was chairman of the Indiana Farm Bureau Young Farmers Committee in 1984.
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