Ohio renewables portfolio bill filed; governor plans separate legislation

Ohio is the latest Midwestern state to consider renewable portfolio standard legislation to require electric utilities and electric services companies to secure at least a portion of their power from renewable energy sources such as wind, biomass or photovoltaic technology. 

But it is unclear if House Bill 76, newly introduced in the General Assembly, will remain the RPS vehicle going forward or if it eventually will be replaced by more diversified legislation under review by Governor Ted Strickland's administration.

H.B. 76 requires Ohio electric service providers to obtain at least 17% of their power supply from renewables by 2020.

State Representative Mike Foley said in an interview last week he believes the RPS bill he is co-sponsoring "stands a better chance" of passing this session than did a similar bill that withered and died on the legislative vine in 2006. "I think there's movement ... people understand the issues around it like global warming," said Foley, a Democrat. "People want a response to it."

The bill, which has not been assigned to committee, applies to the state's electric utilities and "any electric services company that provides such service" in Ohio. The state's electric industry is deregulated, although lawmakers are expected to discuss later this year whether changes should be made to Senate Bill 3, the 1999 electric choice vehicle. Some legislators are advocating a return to some form of "re-regulation."

According to the RPS bill, wind, biomass, photovoltaic technology, geothermal and hydroelectric power plants producing less than 20 MW are defined as "renewable energy." Specifically, nuclear energy and energy produced from coal, natural gas, oil, propane or any fossil fuel is excluded.

The bill mandates electric service providers to secure at least 3% of their power from renewables by 2009, rising to 12% by 2015 and 17% by 2020. After 2023, the amount increases to at least 20%.

Foley said he is heartened by Strickland's "understanding of energy issues." Strickland, a Democrat and former congressman, was elected last November.

But the governor has not taken a public position on H.B. 76, said his energy advisor, Mark Shanahan, who doubles as executive director of the Ohio Air Quality Development Authority. The reason, he said, is that Strickland "has been talking about his interest in advanced generation standards," which Shanahan said could feature some form of RPS but also include an emphasis on development of clean-coal technology.

The governor could incorporate his proposals in any upcoming legislation related to the state's restructuring law, Shanahan added.

Ohio is among several Midwestern states where RPS legislation has been filed this year. RPS bills are pending in both Michigan (EUW, 26 Feb, 12) and Illinois. In Indiana, a renewables bill filed in January has been declared dead for this session because it failed to garner sufficient support.