Honda, others make last-minute push for veto.
Consumers and businesses will see their electric bills go up
if Gov. John Kasich signs a new bill rolling back Ohio’s energy efficiency and
renewable energy standards, according to a letter sent to Kasich on
Wednesday by a coalition of 51 companies and 21 organizations.
The letter would appear to have little impact. Kasich’s
office reiterated Wednesday that he will sign the bill, which puts a two-year
freeze on standards that call for reducing the state’s reliance on nonrenewable
fossil fuels, such as coal.
The “legislation will be harmful to Ohioans’ electric bills
and to Ohio’s burgeoning renewable energy and energy efficiency industries,”
said the letter signed by Honda of America, the Ohio Manufacturer’s
Association, the Ohio Consumers Counsel and a variety of alternative energy
companies, manufacturers, business groups and others.
The letter said the rollback is particularly problematic
given Monday’s announcement by the U.S. Environmental Protection Agency of
proposed rules requiring a 30 percent reduction in carbon dioxide emissions
from fossil-fueled power plants by 2030.
While the letter sent to Kasich doesn’t specifically ask him
to veto the bill, it outlines what the signers say is wrong with the
legislation.
Honda of America spokesman Ron Lietzke said energy
efficiency policies attract economic investment and growth.
“Basically the coalition that Honda’s part of wanted to
share the same concerns with the governor that they shared with the legislature
as they were looking for ways to amend the legislation,” Lietzke said.
Kasich spokesman Rob Nichols Wednesday said the governor
will sign the energy mandate rollback, known as Senate Bill 310. In addition to the two-year
freeze, the legislation sets up a study committee and states an intention to
permanently reduce energy efficiency and renewable energy rules.
“Given the fact that there were those who wanted to end
renewables entirely, and those who think we should never question or reassess
an energy policy that was written before we even knew Ohio was rich in natural
gas, we’re pretty confident that we’ve hit the sweet spot and are firmly in the
sensible center,” Nichols said Wednesday.
Senate Bill 310 supporters —
which include the Ohio Chamber of Commerce — argue that continuing the
renewable and efficiency standards will raise electric rates and cost jobs.
They say the state needs a “time-out” on the standards to study how the energy
environment has changed since the law was passed in 2008, particularly the
discovery of shale oil and natural gas reserves.
Jereme Kent, general manager of Findlay-based wind energy
developer, One Energy LLC, opposes the rollback of the standards but is
relieved that the House removed a “poison pill” provision that he said would
have dried up financing for future wind or solar projects. The deleted “change
of law” provision would have required that any parties to future contracts
signed by electric companies for renewable energy resources or credits be
released from their obligations if the state’s requirements changed.
“I appreciate that the House had the wisdom to remove a pill
that detrimental to the state of Ohio,” Kent said. “At least we will not be the
laughing stock. We will just be behind everybody else.”
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