A panel of senators is reviewing Ohio’s ‘green’ law, which has some worried about the future of the state’s renewables industry.
Senate Bill 221, which sets benchmarks for Ohio’s investor-owned electric companies for renewable energy and energy efficiency standards, has been discussed during a series of public hearings over the past two weeks in Columbus.
While supporters of SB 221 say that the law has made Ohio one of the leaders in renewable energy, opponents worry that complying with the standards is too costly for utility companies who will have to pass the cost on to their customers.
The law created a renewable portfolio standard that requires electric companies to be generating 12.5 percent of their electricity from renewable or “advanced” energy standards by 2025, said Sen. Lou Gentile, D-Steubenville, and member of the Senate Public Utilities Commission that organized the hearings.
“It’s a public policy that seems to be working,” Gentile said. He added that there have been varying perspectives on a range of issues at the hearings.
There is concern from the utility industry about whether or not the energy efficiency standards set forth in SB 221 can be met, but Gentile said there are several different methods for companies to comply.
American Electric Power Ohio, one of the utility companies that must comply with SB 221, has made “significant” investments in renewables to comply with current and future renewable mandates set out in the current law, said Tammy Ridout, spokesperson for the utility company.
“We have entered into long-term contracts with two wind facilities and one solar facility,” Ridout said. “If any changes are made to the renewable requirements, we believe the General Assembly should be mindful of investments we’ve already made to be compliant with current law.”
Gentile said he understands both sides of the argument, but that Ohio needs to take a balanced approach and have a diverse set of energy resources.
“There have been 25,000 jobs created in Ohio since the renewable portfolio standards went into place,” he said.
Although Gentile said reviewing public policies and hearing from both sides of the issue is important, he is worried that if the hearings result in legislation, the renewable energy standards could be weakened.
“We have had job creation in the state around the development of renewable energies,” he said. “We have to be careful that we are not sending the wrong signals to the wind and solar industries.”
Councilwoman Christine Knisely, D-at large, said she has seen evidence of endeavors to improve efficiency at the local level.
“The City of Athens has worked with a consulting firm (Perfection Group) to improve the city’s energy efficiency at various buildings,” Knisely said in an email. “These efforts have included the purchase of solar panels, replacement windows, more efficient lighting and will soon include the purchase of a new heating system for the municipal building at 8 E. Washington St.”
She added in the email that the cost savings estimates for the first year of the energy improvements are more than $10,000. The savings estimate from the solar array in the first year of operation is more than $27,000.
“We could be a leader and if we don’t send that message, then businesses will not be interested in investing here,” she said.
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