Carbon emission limits form a hot topic in Indiana

The EPA rule, if it takes full effect, would require power plants nationwide to reduce their emissions by an average of 30 percent by 2030, based on 2005 levels. Plants in Indiana, which relies on coal for more than 80 percent of the state's electricity, would need to lower their carbon emissions by 20 percent from current levels by 2030.

The assumption is that utilities would be forced to spend considerable sums to achieve those goals and that those costs would be passed on to customers.

Tim Rushenberg, vice president of governmental affairs and tax policy at the Indiana Manufacturers Association, said the carbon limits would add an estimated $600 million annually to Hoosier factories' electric bills. That represents an increase of nearly 20 percent -- a price jump Rushenberg said many businesses won't be able to afford as they're still recovering from the Great Recession.

"This rebound our sector has seen is in jeopardy if this goes into effect," he said, adding that electric rates in Indiana already have increased by 22 percent since 2008.

The EPA's carbon proposal is part of an effort to address climate change, which has been blamed on human emissions of heat-trapping carbon dioxide.

But Rushenberg said the EPA's plan won't do anything to reduce global carbon output if the rule causes more production to bedone in places such as China and India, which aren't taking the same steps to lower their emissions.