Ohio Governor Freezes Renewable Energy Standards

Posted: 06/19/2014  browse the blog archive
Ohio Governor Freezes Renewable Energy Standards

Ohio Governor John Kasich (R) signed a bill on Friday that moved the deadline for new renewable energy requirements, reported the Washington Post late last week.  In 2008, former Democratic Governor Ted Strickland signed legislation requiring the state to acquire 12.5 percent of its energy portfolio from renewables and to reduce energy consumption by 22 percent by 2025.  The new law puts a two-year hold on these renewable targets.

The Ohio Chamber of Commerce, energy utility First Energy, and the American Legislative Exchange Council lobbied to postpone the more stringent energy requirements.  On the other hand, many manufacturers such as Honeywell, Honda, and Whirlpool urged the governor to let the energy requirements stand.

According to the Environmental Defense Fund, the 2008 legislation created 25,000 jobs in the renewable energy industry and through energy efficiency has saved Ohio ratepayers $1 billion.  The utility industry asserts that the renewable energy standards would drive up energy costs that would fall disproportionately on Ohio’s poor.

Although the governor’s decision to sign the bill dismayed many environmentalists, the Environmental Protection Agency proposed new energy regulations earlier this month that may make Ohio’s standards less significant.  To comply with the EPA’s targets, states will have to rely heavily on energy efficiency and renewables.

Governor Kasich is running for reelection this year.

The Chanler Group is actively engaged in the review and analysis of incentive-based renewable energy programs to determine potential benefits to our clients.  Global energy consumption continues to increase each year and, with this increase, the demand for safe, clean, and unlimited energy is on the rise.  The Federal and State governments promote this interest through a variety of financially-beneficial incentives.  Our understanding of these laws allows us to guide homeowners, businesses, and/or developers through the various ways to take advantage of these incentive-based benefits.  With the appreciation that renewable energy laws and regulations are constantly changing, The Chanler Group is committed to investing in its understanding and practice of this area of law.