in Indiana

Fiscal Budgets Indiana state budget and finances Tax policy in Indiana Finance Financial regulation in Indiana Pensions Public pensions in Indiana Pension health in Indiana Civil liberties Affirmative action in Indiana Campaign finance requirements in Indiana Campaign finance requirements for Indiana ballot measures Nonprofit regulation in Indiana Education Charter schools in Indiana Higher education in Indiana Public education in Indiana School choice in Indiana Elections Ballot access Ballot access requirements for political candidates in Indiana Ballot access requirements for political parties in Indiana Political parties in Indiana Ballot access requirements for presidential candidates in Indiana Redistricting in Indiana Voting in Indiana Energy and Environment Energy policy in Indiana Fracking in Indiana Oil and gas extraction on federal land in Indiana Endangered species in Indiana Environmental policy in Indiana Healthcare Healthcare policy in Indiana Medicaid spending in Indiana Effect of the Affordable Care Act in Indiana Immigration Immigration in Indiana

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Indiana.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Indiana.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Indiana, and the electric reliability organizations in Indiana.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Indiana, a state profile of Indiana from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The Division of Oil and Gas in the Indiana Department of Natural Resources has regulatory authority over oil and natural gas operations in the state. State rules and regulations cover the drilling of all wells used for oil or gas exploration, the spacing of wells, permitting requirements for oil and gas operators, injection wells used to enhance oil and gas recovery or to dispose of wastewater, the cementing and plugging of wells, the underground storage of natural gas, the prevention of well blowout and leaks, well restoration, reporting requirements, and more. All statutory requirements related to oil and gas operations are found in Title 14, Article 37 and Title 14, Article 38 of the Indiana Code.^[1][2]

Fracking

See also: Fracking in Indiana

The Division of Oil and Gas is responsible for regulating hydraulic fracturing (also known as fracking) in Indiana. The division enforces regulations for the reporting and disclosure of the types of fluids used in fracking and at what volume, a description of each chemical additive used in fracking, the maximum amount of surface and injecting pressure used during the process, well safety, and other information considered necessary by the division for the regulation of fracking. More detailed information on oil and gas rules and regulations can be found in Article 16 of the Indiana Administrative Code.^[3]

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[4]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[5][6]

As of February 2017, Indiana was one of 20 states that did not have a Renewable Portfolio Standard or a voluntary renewable energy standard or target.^[7]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[4]

As of March 2015, Indiana was one of 18 states with a state-run grant program for renewable energy. As of February 2017, the Indiana Office of Energy Development operated the Community Conservation Challenge, a grant program for non-residential entities to install renewable energy projects and energy efficiency measures. The program provides grants between $20,000 and $80,000 for eligible renewable energy projects. Eligible applicants include local government agencies, K-12 school districts, businesses, public and private universities, and nonprofit organizations in Indiana. Eligible renewable energy technologies include geothermal energy, combined heat and power systems, biomass, solar energy, and wind energy.^[4][8][9]

See the map below for grant programs by state.^[4]

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[4]

As of March 2015, Indiana was one of 34 states with locally run, utility-run, and/or privately run loan programs for renewable energy. A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Indiana can be found here.^[4]

See the map below for renewable energy loan programs by state.

Energy efficiency regulations

As of February 2017, Indiana required new residential and commercial buildings to meet energy efficiency standards. In 2010, the state adopted the 2009 Indiana Energy Conservation Code, which is based on ASHRAE Standard 90.1 (2007). The ASHRAE standard outlines energy efficiency codes related to heating, ventilating, air conditioning, water heating, and lighting. In 2011, Indiana updated its Residential Code to include energy efficiency measures specified in the 2009 version of the International Energy Conservation Code, which can be accessed here.^[7][10][11]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[12][13][14]

As of October 2016, Indiana was one of 41 states with a statewide net metering policy. In 2004, the Indiana Utility Regulatory Commission adopted rules requiring the state's investor-owned utilities to provide a net metering policy for electricity customers. Facilities must have a maximum capacity of 1 megawatt (MW) to be eligible for net metering. Renewable energy sources eligible for net metering include solar energy, wind energy, hydroelectric power, hydrogen, and biomass. Net metering customers must have insurance coverage of at least $100,000 against potential loss.^[15][16]

For a complete list of net metering programs by state, click here.^[7][17]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Indiana State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Indiana ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Indiana.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Indiana.

Production

The sections below include statistics on total energy production in Indiana, oil and natural gas production in Indiana, oil and gas production in Indiana over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Indiana for production.

Total energy production

The table below provides information regarding energy production in Indiana in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[18]

Energy production, 2014 (in billion Btu)
State	Biomass	Coal	Crude oil	Nuclear energy	Natural gas	Renewable	Total*
Indiana	139,957	886,370	14,541		6,755	215,433	1,263,056
Illinois	176,057	1,293,541	55,373	1,023,496	2,754	308,652	2,859,873
Michigan	38,226	38,226	38,226	38,226	38,226	38,226	229,356
Ohio	75,265	541,830	86,524	170,319	592,879	155,815	1,622,632
U.S. average	38,759	404,181	307,301	160,980	585,731	187,132	1,684,085
*Total figures were computed by Ballotpedia. Source: U.S. Energy Information Administration, "Google Sheets API"

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Indiana. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[19][20]

Nonrenewable energy production
State	Coal, productive capacity (short tons)	Natural gas (million cubic feet)	Crude oil (thousand barrels)
Date	2014	December 2014	April 2016
Indiana	49,403,928	550	149
Illinois	76,344,003	206	723
Michigan	0	0	0
Ohio	45,330,256	58,253	2,032
U.S. average	24,874,314	43,350	4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in Indiana. Information from select surrounding states is provided for comparative purposes.^[21]

Crude oil production in Indiana and select surrounding states, in thousand barrels
State	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	Percent of total 2014 production	2014 Rank
Indiana	1,755	1,727	1,773	1,727	1,859	1,803	1,835	1,987	2,350	2,399	2,507	0.08%	23
Illinois	10,984	10,207	10,325	9,608	9,448	9,097	9,069	8,742	8,908	9,539	9,547	0.3%	17
Michigan	5,951	5,733	5,829	5,645	6,270	6,224	6,943	7,013	7,422	7,706	7,247	0.23%	18
Ohio	5,783	5,658	5,439	5,155	5,113	4,877	4,756	4,853	5,121	10,199	17,594	0.55%	14
United States	1,991,394	1,891,227	1,857,044	1,853,166	1,830,002	1,952,670	2,000,861	2,060,398	2,377,806	2,722,171	3,180,813	--	--
Source: U.S. Energy Information Administration, "Crude Oil Production" Note: The data above are field production data.

The graph and table below provide information about natural gas production in Indiana. Information from select surrounding states is provided for comparative purposes.^[22]

Natural gas production in Indiana and select surrounding states, in million cubic feet (MMCF)
State	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	Percent of total 2013 production	2013 rank
Indiana	1,464	3,401	3,135	2,921	3,606	4,701	4,927	6,802	9,075	8,814	7,938	0.03%	25
Illinois	174	170	166	170	1,394	1,193	1,443	1,702	2,121	2,125	2,887	0.01%	27
Michigan	242,651	265,345	266,776	268,673	270,571	158,794	159,400	136,782	143,826	129,333	123,622	0.41%	19
Ohio	93,641	90,476	83,523	86,315	88,095	84,858	88,824	78,122	78,858	84,482	186,181	0.62%	17
United States	24,118,978	23,969,678	23,456,822	23,535,018	24,663,656	25,636,257	26,056,893	26,816,085	28,479,026	29,542,313	30,005,254	--	--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production" The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

Oil and gas production on federal land

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.^[23][24]

The table below provides information about oil and natural gas production on federal lands in Indiana in 2014. Information from select surrounding states is provided for comparison.^[25][26]

Oil and natural gas production on federal land, 2014
State	Oil production (in thousands of barrels)	Natural gas production (in million cubic feet)
Indiana	0	0
Illinois	21	0
Michigan	29	1,200
Ohio	14	362
U.S. average	2,976.06	49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

Land leased

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.^[27]

The table below provides information about oil and gas producing leases and acres on federal lands in Indiana from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015
State	FY 2015		FY 2014		FY 2013
	Producing leases	Producing acres	Producing leases	Producing acres	Producing leases	Producing acres
Indiana	2	68	2	68	2	68
Illinois	8	1,581	8	1,581	9	1,651
Michigan	64	30,926	63	29,406	64	29,623
Ohio	238	46,100	236	45,816	233	45,084
U.S. average	485	257,505	483	258,996	480	262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Indiana in 2014. Information from select surrounding states is provided for comparison.^[19]

Energy consumption in Indiana, 2014 (in billion Btu)
State	Coal	Crude oil and petroleum products	Natural gas	Nuclear energy	Solar	Wind	Geothermal	Hydropower	Wood and wood waste	Biomass
Indiana	1,221,492	789,201	727,758		1,374	33,247	4,647	3,530	32,678	112,781
Illinois	1,017,855	1,220,342	1,116,417	1,023,496	3,102	95,888	2,042	1,258	30,304	138,402
Michigan	618,479	870,759	878,699	326,800	1,286	36,786	5,193	15,216	96,670	150,125
Ohio	1,057,377	1,147,762	1,044,986	170,319	2,408	10,969	3,435	4,546	59,193	129,920
U.S. average	359,931	716,746	544,353	172,585	20,739	531,323	16,555	61,397	65,345	101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

Prices and taxes

The sections below include information on energy prices and spending in Indiana, fuel taxes and state taxes in Indiana and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[28][29]

The table below provides information about energy prices in Indiana as of April 2016. Information from select surrounding states is provided for comparison.^[19]

Energy prices in Indiana
State	Natural gas Dollars per thousand cubic foot	Electricity Cents per kilowatthour
Date	April 2016	April 2016
Indiana	$0.00	9.1
Illinois	$7.52	9.0
Michigan	$7.71	7.7
Ohio	$8.01	9.7
U.S. average	$11.20	10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Indiana in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Indiana by sector (in cents per kilowatthour)
State	Commercial	Industrial	Residential	Transportation	Average (all sectors)
Date	April 2016	April 2016	April 2016	April 2016	April 2016
Indiana	9.8	7.1	11.8	9.8	9.6
Illinois	8.7	6.3	12.8	8.7	9.1
Michigan	7.7	7.7	7.7	7.7	7.7
Ohio	9.9	6.8	12.8	9.9	9.8
U.S. average	10.48	7.45	13.05	10.47	10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

Energy spending

The table below provides information about energy spending in Indiana as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Indiana, 2014 (in millions of dollar except per capita spending)
State	Petroleum	Coal	Natural gas	Nuclear	Per capita spending
Indiana	$18,850	$3,514	$5,266	$0	$5,176
Illinois	$29,290	$2,155	$9,088	$786	$4,002
Michigan	$22,700	$22,700	$22,700	$22,700	$22,700
Ohio	$29,520	$2,568	$7,438	$131	$4,431
U.S. average	$17,267	$1,322	$3,786	$574	$5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

Fuel taxes

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[30][31]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Indiana as of January 2016. As of January 2016, Indiana levied a 29.9 cent state gasoline tax and a 38.8 cent state diesel tax. Indiana ranked 23rd highest in total gasoline taxes (federal and state) and sixth highest in total diesel fuel taxes as of January 2016.^[32][33]

State motor fuel taxes in cents per gallon, January 2016
State	State gasoline tax	Total gasoline tax	Rank	State diesel tax	Total diesel tax	Rank
Indiana	29.9	48.3	23	38.8	63.2	6
Illinois	30.2	48.6	20	33.4	57.8	14
Michigan	30.5	48.9	18	28.5	52.9	26
Ohio	28.0	46.4	26	28.0	52.4	27
U.S. average	30.29	48.69	N/A	30.01	54.41	N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[34]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Indiana, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Indiana.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[35][36]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[36]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[37][38]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[37][38]

As of February 2017, Indiana was one of 40 states with a regulated electricity market. The Indiana Utility Regulatory Commission oversees investor-owned utilities and other electric utilities. Under Indiana law, publicly owned municipal utilities and electric cooperatives are allowed to remove themselves from the commission's jurisdiction by a majority vote in a municipality or by ordinance from a local government agency. As of February 2017, the commission regulated nine publicly owned municipal utilities, six investor-owned utilities, and five wholesale utilities.^[39][40]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[41]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[42]

Indiana EROs

As of February 2017, ReliabilityFirst was the NERC-affiliated nonprofit corporation that oversees electric service reliability in Indiana. NERC authorized ReliabilityFirst as an ERO in July 2006. The corporation is responsible for developing electricity reliability standards, monitoring compliance by owners and users of the bulk electric system, and issuing seasonal and long-term assessments of bulk electric system reliability in the region.^[43]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Indiana (from the U.S. Energy Information Administration), a general profile of Indiana (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Indiana.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[44]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[44]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[44]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[44]

Indiana energy profile

As of 2013, Indiana's residential energy use per capita was above the national average. The state's industrial sector, including chemical manufacturing, petroleum refining, and steel-making, was the largest energy consumer in 2013.^[19]

As of January 2015, Indiana had two crude oil refineries, and three interstate oil pipelines and six petroleum product pipelines delivered oil to the state. Most of Indiana's petroleum consumption came from regular gasoline for motor vehicles.^[19]

Interstate pipelines deliver natural gas to the state primarily through Kentucky and Illinois. As of 2015, Indiana had 22 natural gas storage fields. The industrial sector consumed more natural gas than other sectors combined. Around 20 percent of the state's natural gas consumption occurred in the residential sector. From 2009 to 2012, the use of natural gas to generate electricity increased to approximately 20 percent of the state's net electricity generation.^[19]

As of 2015, Indiana was one of the top 10 states for coal production. Approximately 33 percent of coal produced in Indiana was shipped to other states by railroad, truck, or barge. About 66 percent of the state's coal was consumed for electricity. As of 2015, Indiana imported approximately 40 percent of its coal from other states. The state's total coal consumption as of 2015 ranked third after Texas and Illinois.^[19]

State profile

Demographic data for Indiana
	Indiana	U.S.
Total population:	6,612,768	316,515,021
Land area (sq mi):	35,826	3,531,905
Race and ethnicity**
White:	84.2%	73.6%
Black/African American:	9.2%	12.6%
Asian:	1.9%	5.1%
Native American:	0.2%	0.8%
Pacific Islander:	0%	0.2%
Two or more:	2.2%	3%
Hispanic/Latino:	6.4%	17.1%
Education
High school graduation rate:	87.8%	86.7%
College graduation rate:	24.1%	29.8%
Income
Median household income:	$49,255	$53,889
Persons below poverty level:	18.4%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Indiana. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Indiana

Indiana voted Republican in five out of the six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, five are located in Indiana, accounting for 2.43 percent of the total pivot counties.^[45]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Indiana had five Retained Pivot Counties, 2.76 percent of all Retained Pivot Counties.

More Indiana coverage on Ballotpedia

• Elections in Indiana
• United States congressional delegations from Indiana
• Public policy in Indiana
• Influencers in Indiana
• Indiana fact checks
• More...

Economic indicators

See also: Economic indicators by state

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[46][47][48]

In 2013, about 12 percent of Indiana residents earned incomes below the poverty level, the lowest percentage among neighboring states. Between 2011 and 2013, Indiana's median annual household income was $48,178. The state's unemployment rate in September 2014 was just below the national rate.^{[49][50][51][52]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)				Median annual income (2011-2013)	Unemployment rate		Total GSP (2013)†
	Under 100%	100-199%	200-399%	400%+		Sept. 2013	Sept. 2014
Indiana	12%	23%	31%	35%	$48,178	7.3%	5.7%	$317,102
Illinois	13%	17%	31%	39%	$54,083	9.1%	6.6%	$720,692
Michigan	15%	19%	30%	37%	$49,902	8.8%	7.2%	$432,573
Ohio	14%	21%	33%	32%	$46,672	7.4%	5.6%	$565,272
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

See also

• Energy policy in the U.S.
• Fracking in Indiana
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Indiana

Recent news

The link below is to the most recent stories in a Google news search for the terms Indiana energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

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