Quantcast
Business

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

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

Sponsored
Renewable Energy
Denver will get 100 percent of its energy from renewable sources by 2030. Robert Kash / Flickr / CC BY 2.0

Denver to Go 100 Percent Renewable by 2030

Denver became the 73rd city in the U.S. to commit to 100 percent renewable energy when Mayor Michael Hancock announced the goal in his State of the City speech Monday, The Denver Post reported.

The commitment is part of the city's larger 80×50 Climate Action Plan unveiled by Hancock Tuesday, which seeks to reduce Denver's greenhouse gas emissions 80 percent from 2005 levels by the year 2050.

Keep reading... Show less
Animals
Emilie Chen / Flickr / CC BY-ND 2.0

Against All Odds, Mountain Gorilla Numbers Are on the Rise

By Jason Bittel

The news coming out of East Africa's Virunga Mountains these days would have made the late (and legendary) conservationist Dian Fossey very happy. According to the most recent census, the mountain gorillas introduced to the world in Gorillas in the Mist, Fossey's book and the film about her work, have grown their ranks from 480 animals in 2010 to 604 as of June 2016. Add another couple hundred apes living in scattered habitats to the south, and their population as a whole totals more than 1,000. Believe it or not, this makes the mountain gorilla subspecies the only great apes known to be increasing in number.

Keep reading... Show less
Politics
The Power Shift 2011 rally targeted primarily the U.S. Chamber of Commerce for using its money and influence to stop climate and clean energy legislation. Linh Do, CC BY 2.0

Fossil Fuel Industry Outspent Environmentalists and Renewables by 10:1 on Climate Lobbying, New Study Finds

By Itai Vardi

Industry sectors based on fossil fuels significantly outspent environmental groups and renewable energy companies on climate change lobbying, new research has found.

In a study published Wednesday in the journal Climatic Change, Drexel University sociologist Robert Brulle shows that between 2000 and 2016, lobbyists spent more than $2 billion trying to influence climate legislation in the U.S. Congress.

Keep reading... Show less
Health
Pexels

Is Your Popcorn Laced With Hormone-Disrupting Chemicals?

By Kathryn Alcantar and Jose Bravo / Independent Media Institute

No one should be exposed to toxic chemicals in their food, particularly children. But that's exactly what the Center for Environmental Health (CEH) found in tests of microwave popcorn bags sold in Dollar Stores. These stores are frequented by communities of color and millions of poor Americans.

Keep reading... Show less
Sponsored
Climate
The Washington Post / Contributor / Getty Images

Climate Change May Stimulate the Chesapeake’s Blue Crab Population

By Amy Mcdermott

Jason McElwain isn't afraid of a pinch. He reached calmly into a basket of live crabs one Friday this June, and kept his cool even when a claw clamped down hard on his finger. "You get used to it after a while," he said, then yanked the crab off and tossed it into a plastic bin.

Keep reading... Show less
Food
Pexels

A Brief History of the Feral Blackberry

By Sara Bir

Blackberries are perhaps the best known of all foraged wild fruits. Whether they grow modestly on the perimeters of a ramshackle farm or thrive ruthlessly along the banks of a forgotten creek, there are hundreds of hidden wild blackberry havens waiting for opportunistic berry fanatics.

Keep reading... Show less
Sponsored
Climate
Joshua Tree National Park now has more unsafe ozone days than New York City. atramos / CC BY 2.0

Air Pollution in National Parks as Bad as 20 Largest U.S. Cities

A new study shows the importance of clean air regulations to prevent air pollution from reaching national parks.

A study published in Science Advances Wednesday found that, between 1990 and 2014, the ozone concentrations in 33 of the largest and most visited national parks were statistically indistinguishable from the ozone concentrations in the 20 largest U.S. cities.

Keep reading... Show less
Energy
Halliburton getting ready to frack in the Bakken formation, which underlies North Dakota, Montana, Saskatchewan and Manitoba. Joshua Doubek / CC BY-SA 3.0

Zinke’s Real Estate Deal With Halliburton Chair to Be Investigated

Ousted U.S. Environmental Protection Agency (EPA) head Scott Pruitt isn't the only polluter-friendly Trump appointee with sketchy ethics.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!