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Columbus Business First - 2007-08-23

Green, biz groups call for state renewable energy policy

 A heightened commitment to wind power in Ohio could create more than 3,000 jobs, boost the state's economic output, generate more property taxes for county governments and help rural landowners, says a report released Thursday by an environmental advocacy group.

To achieve all that, Environment Ohio wants state lawmakers to adopt a policy that would require Ohio's electricity mix to include at least 20 percent renewable energy by 2020, said Amy Gomberg, an advocate with the Columbus-based group that published the report.

Environment Ohio wants that renewable energy provision to be part of an energy policy expected to be hashed out in the General Assembly this fall. The issue is coming to a head because Ohio's electricity rate stabilization plans for investor-owned utilities, such as Columbus-based American Electric Power Company Inc (NYSE:AEP), will expire at the end of 2008, moving the state to a fully deregulated market for electricity rates. Power users are raising warning flags that electric rates will soar under full deregulation.

Environmental, labor, business and consumer groups discussed the energy policy question during a teleconference after the release of the Environment Ohio report.

"We believe this is a great opportunity to put politics aside," said Ohio AFL-CIO chief of staff Tim Burga, "and not only address (electric) deregulation but adopt a renewable energy plan as well."

A commitment to renewable energy would provide an opportunity to create jobs and improve the state's environment, said Dave Caldwell, an official with the United Steelworkers union.

"The time for this has come, if not overdue," he said. "We believe a lot of manufacturing jobs can be created, and it's good public policy to get away from fossil fuels and into renewable energy."

With its large manufacturing base, Ohio has the potential to become a leader in the production of renewable energy equipment like wind turbines and component parts, Gomberg said.

"It could really make us the Silicon Valley of the renewable energy business," she said.

The Environment Ohio report examined the economic and environmental effects of the state requiring 20 percent of its electricity be produced by wind sources by 2020. The report projected Ohio would:

  • Gain 40,000 man-years of employment through 2020, the equivalent of 3,100 permanent jobs, with an added $3.7 billion in wages paid.
  • Increase its gross product by $8.2 billion.
  • Generate up to $1.5 billion in property taxes for county governments.
  • Supplement rural landowners' incomes by $200 million.
  • Avoid the release of 170 metric tons of carbon dioxide, the equivalent of taking more than 2 million cars off the road, and other pollutants, including sulfur dioxide, nitrogen oxide and mercury.

The report didn't address the effect a 20 percent renewable energy requirement by 2020 would have on electricity rates in Ohio. But it said wind energy would not be subject to increased costs associated with federal caps that could be placed on carbon dioxide emissions.