On May 1, 2008, then-Governor Ted Strickland signed Substitute Senate Bill 221 (SB 221), making Ohio one of 29 states (plus DC) in the country to establish energy efficiency resource standards (EERS).
The bill mandates that the state’s investor-owned utilities (IOUs) reduce their energy consumption by 22.2% by 2025. This mandate is broken down into yearly increments – each utility is supposed to meet each annual goal on the path to the overall reduction. For 2013, IOUs must reduce the annual electricity consumption of their customers by 0.9%.
The bill also required IOUs to generate at least 25% of their electricity from advanced energy sources by 2026. Of these “advanced energy sources,” at least half must come from true renewable energy sources, like wind and geothermal (the bill includes a 0.5% carve out for solar energy). The other half can come from alternative sources, including “clean coal” (carbon capture and sequestration) and, as of Fall 2011, combined heat and power.
To date, the bill has largely delivered on its promises. According to Environment Ohio, the standards have saved enough energy (negawatts) to power 267,000 houses for a year. Additionally, the renewable portfolio standard (RPS) has sparked the installation of enough solar and wind generation capacity to power 95,000 houses for a year. Furthermore, the bill has contributed to the growth the renewable energy industry in Ohio, making good on the promises of job creation from its proponents. In 2011, Ohio ranked 5th in the country for green jobs, with 137,143. This industry – which had the highest growth rate of any sector in the US economy from 2010-2011 – has contributed significantly to Ohio’s economic recovery. Green jobs account for 2.8% of Ohio’s total workforce, higher the national average (2.6%).
Despite the success of this legislation, the bill has come under attack recently by a group of conservative lawmakers and industry interests. As a part of its broader effort to fight renewable energy at the state level, ALEC has placed SB 221 squarely in its sights. Two conservative state senators – Sen. Kris Jordan and Bill Seitz – are leading this charge. This effort is also the latest assault on energy efficiency and renewable energy in Ohio from FirstEnergy, the electric utility whose incompetence brought you the 2003 East Coast blackout.*
Last week, Sen. Seitz told the Wall Street Journal that that mandates in SB 221 reminded him of “Joseph Stalin’s five-year plan.” Setting aside the absurdity of this statement, it represents a remarkable shift for Seitz on the bill in just 4 years (he initially proposed to scrap the EERS & RPS entirely in 2011; that bill never made it out of committee). Seitz has conveniently failed to mention that he voted for SB 221 in 2008. In fact, the bill sailed through the Ohio State Senate unanimously. And it passed through the Ohio House by a 93-1 vote. During the debate on the bill, Seitz never offered any opposition to it on the record, nor did he try to amend it in any substantial way.
This is an awfully big change from a legislator who tried to paint himself as a reasonable moderate during the contentious debate over SB 5. Yet, I guess it’s not surprising from a man who has served on the Board of Directors for ALEC and has received nearly $63,000 in campaign contributions since 2000 from industries ALEC represents, including oil and gas.