Quantcast

Ohio's Renewable Energy Freeze Threatens Growth of Solar and Wind Investments and Jobs

Business

When Ohio Governor John Kasich signed SB 310, a two-year freeze of the state's renewable energy and energy efficiency standards, last June, he was leading the way—backwards. Ohio became the first state to roll back standards that were already in place, passed in 2008 in an uncontroversial unanimous bipartisan vote. Those standards—which required that, by 2025, 25 percent of the state's energy be created by advanced energy sources, half of them renewables, and that utilities reduce energy use by 22 percent—proved effective not only in moving the state closer to a clean energy future but in creating jobs, fueling economic growth and generating new investment.

Ohio's renewable energy sector is already stalling because of the state's renewable energy standards freeze. Photo credit: The Pew Charitable Trusts

That's now threatened by the freeze, according to a new report from The Pew Charitable Trusts.

"Ohio is a prime example of why policy matters," said the Pew report. "Just as the state’s energy policies once encouraged the development of a clean energy industry, recent uncertainty surrounding the renewable and efficiency portfolio standards has stunted investment and growth."

Pew's findings should be a warning for other states considering such a rollback bill, called the "Electricity Freedom Act" by lobby group the American Legislative Exchange Council (ALEC), which is pushing the effort. The study found that the standards had spurred business investment and manufacturing in a state well-positioned to take advantage of opportunities in the renewable sector because of its industrial history and infrastructure. Ohio was first in the country in the number of facilities making wind energy components and second in the country in making solar-related equipment as of 2013.

Since the 2008 passage of its alternative energy portfolio standard and energy efficiency portfolio standard, the study said, "The state has leveraged other state and federal financing such as tax exemptions, rebates and loans to build on that groundwork. Ohio attracted $1.3 billion in private clean energy investment from 2009 to 2013 and is expected to generate an additional $3.3 billion over the next decade."

Ohio had attracted $755 million in wind investments between 2009 and 2013, and has enough wind resources to meet all of the state's current energy needs. Its 86 solar technology facilities rank it 16th in the country in total capacity and 8th in total jobs numbers.

But the report cautions, "Installations and revenue in some sectors, particularly wind, are expected to stall because the state enacted a two-year freeze of the portfolio standards in June 2014. This action has affected many projects and contracts already underway, creating uncertainty for investors and businesses."

Already private investment in solar fell from 12th place nationally in 2012 to 20th nationally in 2013—from $187.4 million to $75.3 million—because of uncertainty about how the legislature might act on the standards. The legislature also eliminated a requirement for the amount of renewable energy that must be generated in-state, making such investment even less attractive. And it hampered wind development by enacting an onerous new setback regulation.

“Ohio’s experience demonstrates the importance of long-term policy to foster growth in the clean energy industry,” said Tom Swanson, manager for The Pew Charitable Trusts’ clean energy initiative. “The state’s alternative energy portfolio standard, along with the federal production tax credit, boosted Ohio’s strong manufacturing base, which at one point supported 62 facilities producing wind energy components—more than any other state. But now, many manufacturers are directing their investments elsewhere because policy uncertainty is tightening the local market for their products.”

Adding to that uncertainly, the fossil fuel-friendly legislature has formed a committee to study the possibility of killing the clean energy standards permanently, and it's packed with clean energy opponents. Ohio Environmental Council (OEC) deputy director Jack Shaner called the panel “an insincere sideshow.”

Growth in solar installations, such as this one in Athens, Ohio, could be jeopardized by the rollback of Ohio's clean energy standards. Photo credit: The Pew Charitable Trusts

At the time of its passage, the rollback was widely condemned by environmental groups.

“With this legislation, Governor Kasich is moving the state backwards while monopoly utilities like FirstEnergy and AEP will see even greater profits,” said Sierra Club campaign representative Daniel Sawmiller. “Ohioans can now expect higher electricity bills, fewer jobs in the clean energy manufacturing and construction industries, and increased pollution.

“Dirtier air. Higher electric bills. Lost jobs and investment. These are the new ‘dividends’ in store for Ohio from this major divestiture in clean energy,” said Trish Demeter, managing director of Energy and Clean Air Programs for OEC.

According to the findings of The Pew Charitable Trusts, those predictions of jobs and investment losses were accurate.

YOU MIGHT ALSO LIKE

Ohio Gov. John Kasich Signs Nation's First Renewable Energy Freeze

Why Ohio's Budget Update Will Further Crush Renewable Energy

How ALEC Stacks Deck Against Renewables in Ohio

Show Comments ()

EcoWatch Daily Newsletter

Aerial view of the explosion site of a chemical factory on March 22 in Yancheng, Jiangsu Province of China. Caixin Media / VCG / Getty Images)

At least 47 people have died in an explosion at a plant in Yancheng, China Thursday run by a chemical company with a history of environmental violations, Sky News reported.

Read More Show Less
A fishmonger in Elmina, a fishing port in the Central Region of Ghana. Environmental Justice Foundation

By Daisy Brickhill

Each morning, men living in fishing communities along Ghana's coastline push off in search of the day's catch. But when the boats come back to shore, it's the women who take over.

Read More Show Less
Sponsored
Pexels

By Sam Nickerson

Links between excess sugar in your diet and disease have been well-documented, but new research by Harvard's School of Public Health might make you even more wary of that next soda: it could increase your risk of an early death.

The study, published this week in the American Heart Association's journal Circulation, found that drinking one or two sugar-sweetened beverages (SSBs) each day — like sodas or sports drinks — increases risk of an early death by 14 percent.

Read More Show Less
Krystal B / Flickr

Tyson Foods is recalling approximately 69,093 pounds of frozen chicken strips because they may have been contaminated with pieces of metal, the U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS) announced Thursday.

The affected products were fully-cooked "Buffalo Style" and "Crispy" chicken strips with a "use by" date of Nov. 30, 2019 and an establishment number of "P-7221" on the back of the package.

"FSIS is concerned that some product may be in consumers' freezers," the recall notice said. "Consumers who have purchased these products are urged not to consume them. These products should be thrown away or returned to the place of purchase."

Read More Show Less
Pixabay

By Hrefna Palsdottir, MS

Cold cereals are an easy, convenient food.

Read More Show Less
Sponsored
A tractor spraying a field with pesticides in Orem, Utah. Aqua Mechanical / CC BY 2.0

Environmental exposure to pesticides, both before birth and during the first year of life, has been linked to an increased risk of developing autism spectrum disorder, according to the largest epidemiological study to date on the connection.

The study, published Wednesday in BMJ, found that pregnant women who lived within 2,000 meters (approximately 1.2 miles) of a highly-sprayed agricultural area in California had children who were 10 to 16 percent more likely to develop autism and 30 percent more likely to develop severe autism that impacted their intellectual ability. If the children were exposed to pesticides during their first year of life, the risk they would develop autism went up to 50 percent.

Read More Show Less
The ExxonMobil Torrance Refinery in Torrance, California. waltarrrr / Flickr

ExxonMobil could be the second company after Monsanto to lose lobbying access to members of European Parliament after it failed to turn up to a hearing Thursday into whether or not the oil giant knowingly spread false information about climate change.

The call to ban the company was submitted by Green Member of European Parliament (MEP) Molly Scott Cato and should be decided in a vote in late April, The Guardian reported.

Read More Show Less
Bernie Sanders holds his first presidential campaign rally at Brooklyn College on March 02 in Brooklyn, New York. Kena Betancur / VIEWpress / Corbis. Getty Images

Bernie Sanders has become the first contender in the crowded 2020 Democratic presidential primary field to pledge to offset all of the greenhouse gas emissions released by campaign travel, The Huffington Post reported Thursday.

Read More Show Less