Indiana poised to be leader in autos, energy and biofuels
By Senator Richard G. Lugar and Representative Pete Visclosky
As submitted to the Post Tribune
March 6, 2006

Since the beginning of the American republic, the territory that became Indiana has been the crossroads of the nation. Indiana was the site of the portages and routes between the Great Lakes-Saint Lawrence-Atlantic watershed and the Wabash-Mississippi-Caribbean watershed.

In the industrial era, Indiana has been driving the American economy with our steel, our engineering and manufacturing, our coal and our agriculture.

At the beginning of the 21st century we must now ask, 'What is Indiana's future in this new world of globalization?' The answer will come from our natural and geographic advantages, the foundation we have built in industry and education, and the skills of our people.

In our view, an important part of that economic future should be the aggressive pursuit and development of clean energy resources and technologies, especially those resources that can be grown and generated in our state. Energy is one of the biggest challenges facing the world today-it's also an opportunity for Hoosiers.

The development of American-made energy resources is a national security priority, and no option should be off the table. America's dependence on foreign oil threatens our living standards, increases the risk of war in the most unstable parts of the world, and accelerates environmental degradation.

Indiana can use its expertise in autos, engineering and manufacturing to help develop fuel efficient vehicles, such as gas-electric hybrid cars that contain important technologies developed by Indiana engineers. This could slash our demand for petroleum. We can also use our agricultural resources to promote, develop and produce renewable fuels and technologies that will reduce our dependence on foreign energy.

We support efforts to encourage the use of more renewable energy to generate electricity in our state. Indiana could become a leader in the development of renewable electrical energy resources, such as biomass and wind.

Creating more effective and affordable clean coal technologies, which are carbon-neutral, is also an area where Indiana can shine.

And of course, as a leading agricultural state, Indiana is well-positioned to capitalize on home-grown fuels. The two of us have teamed up to obtain $9.5 million in federal assistance to build an ethanol plant in Rensselaer. This will provide Northwest Indiana farmers with a new market, create new jobs and bring research, science, agriculture and technology together to create more made-in-America energy options such as biofuels and biochemicals.

Indiana's central location and its system of roads, rails, pipelines and electrical transmission lines means that we can be a hub for the fuel and energy we create, and distribute it quickly and efficiently around the Midwest.

In Congress, we have been working in a bipartisan fashion to enhance U.S. economic and national security by promoting new energy resources, especially the production and distribution of cellulosic ethanol, which can be made from agricultural waste. We also want Congress to encourage more production of flexible-fuel vehicles, which can run on a blend of gasoline and up to 85 percent ethanol, known as E-85.

Indiana already has 27 gas stations that sell E-85 fuel, including three in Northwest Indiana, and Shell says it has started a pilot project to test-market E-85 in the Chicago area. More availability of E-85 stations will increase demand for ethanol and flex-fuel vehicles, which will in turn encourage more gas stations to offer E-85, creating a virtuous cycle to improve both our security and Indiana's economy.

Another key Hoosier advantage is our tradition of innovation. Elwood Haynes built one of America's first gasoline-powered automobiles in Kokomo. Carl Fisher constructed the Indianapolis Motor Speedway as an automobile testing ground, and ever since it has been the source of new ideas, from the rear-view mirror to aerodynamic design to pure-ethanol fuel.

Important new varieties of corn and other crops have come from Purdue, and steel companies located in Northwest Indiana are investing in cutting edge research and development.

To realize this clean and renewable energy future for Indiana, Hoosiers must apply vision, daring, an entrepreneurial spirit, and scientific know-how. And we should do it in a spirit of cooperation, in a nonpartisan way. The challenges we face as a state and nation are not Republican or Democratic, they are American.

We call on Hoosier businessmen, manufacturers, engineers, farmers, workers universities and government leaders to accept this challenge to make our state a 21st century leader in new technologies for autos, energy, and biofuels. It will be good for Indiana, and good for our country.