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
Popular
North Carolina hog CAFO in Hurricane Florence floodwaters, Sept. 18. Larry Baldwin / Crystal Coast Waterkeeper / Waterkeeper Alliance

In a Warming World, Carolina CAFOs Are a Disaster for Farmers, Animals and Public Health

By Karen Perry Stillerman

In the aftermath of Hurricane Florence, I've joined millions who've watched with horror as the Carolinas have been inundated with floodwaters and worried about the various hazards those waters can contain. We've seen heavy metal-laden coal ash spills, a nuclear plant go on alert (thankfully without incident), and sewage treatment plants get swamped. But the biggest and most widely reported hazard associated with Florence appears to be the hog waste that is spilling from many of the state's thousands of CAFOs (confined animal feeding operations), and which threatens lasting havoc on public health and the local economy.

Keep reading... Show less
Popular
Models are seen backstage ahead of the Chika Kisada show during Milan Fashion Week Spring/Summer 2019 on Sept. 24. Tristan Fewings / Getty Images Entertainment / Getty Images

Milan Fashion Week Closes with ‘Oscars of Sustainable Fashion’

Milan Fashion Week closed on Sunday with the second annual "Green Carpet Fashion Awards" to promote sustainability in the fashion industry, Reuters reported.

Keep reading... Show less
Climate
An art installation of a polar bear crossing a New York City street. Thomas Jackson / Getty Images

7 Events to Check Out During the 10th Annual Climate Week NYC

Monday marks the start of the 10th annual Climate Week NYC. From Sept. 24 to the 30, non-profit The Climate Group has invited businesses, governments, nonprofit organizations, universities and art and music organizations to host a wide variety of affiliated events devoted to raising awareness and prompting action around climate change.

Keep reading... Show less
Health
Pexels

5 Ingredients for Health: Starting with Food

On Food Talk with Dani Nierenberg, Dr. Robert Graham—board-certified physician and founder of FRESHMed NYC—combines mainstream medical practices with therapies inspired by ancient wisdom: an integrative model of medicine. "My dad was a biochemist, so I grew up in this integrative model. One of the things that really stood out is my mom was distrustful about the conventional Western model. She still thinks she's the only doctor in the house, because food is such a powerful medicine, especially from her culture," said Graham.

Keep reading... Show less
Sponsored
Popular
Malte Mueller / Getty Images

When Profit Drives Us, Community Suffers

By David Korten

As I was reading the current series of YES! articles on the mental health crisis, I received an email from Darcia Narvaez, professor of psychology at University of Notre Dame. She was sending me articles being prepared for an anthology she is co-editing with the working title Sustainable Vision.The articles present lessons from indigenous culture that underscore why community is the solution to so much of what currently ails humanity.

Keep reading... Show less
Popular
The Revelator

Interactive Map: Air Pollution in 2100

By Dipika Kadaba

Having a little trouble breathing lately? That's no surprise. Air pollution is already bad in many parts of the country, and climate change is only going to make it worse. Even though many industries are reducing their emissions, a warming climate could actually offset these reductions by intensifying the rates of chemical reactions and accumulation of pollutants in the environment.

Keep reading... Show less
Sponsored
Health
ddukang / iStock / Getty Images Plus

Is Apple Cider Vinegar Good for You? A Doctor Weighs In

By Gabriel Neal

When my brother and I were kids back in the '80s, we loved going to Long John Silver's.

Keep reading... Show less
Animals

Dumpster Debacle Distracts From Serious Spike in Whale Deaths

This week, a video of a failed attempt to put a dead, 4,000-pound whale into a tiny dumpster made the rounds on the internet, garnering chuckles and comparisons to Peter Griffin forklifting and impaling a beached sperm whale on Family Guy.

The juvenile minke whale washed up on Jenness Beach in Rye, New Hampshire on Monday morning, NBC 10 Boston reported. It was found with entanglement wounds, so researchers with the Seacoast Science Center and the National Oceanic and Atmospheric Administration (NOAA) wanted to move the carcass from the beach to a lab for a necropsy to study its death.

Keep reading... Show less
Sponsored

mail-copy

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