With staffers holding a
giant Ohio Department of Natural Resources (ODNR) wind map of Lake Erie
behind them in the Statehouse Wednesday, Reps. Michael Skindell (D-Lakewood)
and Robert Hagan (D-Youngstown) unveiled what they called "an ambitious
plan to increase the percentage of renewable energy purchased by
Ohio's electric utilities."
The announcement came as
the National Governors Association (NGA) officially launched its Securing a
Clean Energy Future initiative. (See www.nga.org/ci .) The initiative
promotes state level policies that use existing energy resources more
wisely through efficiency and conservation; promote non-petroleum based
fuels such as ethanol and biodiesel; take reasonable steps to reduce
greenhouse gas emissions; and accelerate the research and development of
advanced, cleanenergy technologies.
Skindell said HB 313 would "require
electric utilities offering services in Ohio to
provide a modest two percent of their energy from renewable sources such as
wind, solar, biomass, and low-impact hydroelectric facilities" beginning in
2009; increasing by two percent annually until, "in 2018, Ohioans will be
receiving 20 percent of their energy from renewable sources." The bill
also requires half of the renewable energy to come from wind, including 250
MW from wind farms on Lake Erie. This compares with Gov.
Strickland's comprehensive energy plan that calls for at least 25 percent of
the electricity sold in the state to be generated from advanced technology
by 2025. (See The Hannah Report, 8/29/2007.)
Skindell said the Lake
Erie wind farm would be the first fresh water wind
farm and the largest wind farm in the world. He said an initial demonstration
project in the Cleveland area would be barely visible
from shore, with future phases farther offshore not visible at all from
land. Skindell noted that there would be substantial penalties for electric
utilities that fail to achieve the bill's goals, and that waivers would
require documentation and a public hearing. He added that utilities can
purchase credits for renewable energy consumed in Ohio, with a
premium of 1.5 credits for renewable
energy also produced in
Ohio.
Repeatedly criticizing the Republican Legislature
and the "failed" 1999 electric deregulation bill (123-SB3), Hagan
said, "Utility companies in Ohio have given nothing but
lip-service to the renewable energy issue since 2001, when Rep. Skindell
and I first introduced renewable portfolio legislation. If the electric
industry is either unwilling or unable to provide Ohioans with the clean,
reliable, and affordable electricity they desire, then it is up to
policymakers in Columbus to force renewable standards
and provide incentives."
Richard Stuebi of The Cleveland
Foundation, who also participated in the news conference, said, "A renewable
portfolio standard (RPS) is essential to prepare Ohio
for the 21st-century economy. Renewable energy is a huge growth
industry, and if we in Ohio are going to capture some
of the massive economic opportunities available from renewable energy,
we need to position ourselves now by implementing a strong RPS. More than
half of the states in the nation have already implemented an RPS.
Ohio is lagging behind, and we must act quickly to
catch up."
Amy Gomberg of Environment Ohio cited the job creation
potential for Ohio of wind energy as detailed in their
report, Energizing Ohio's Economy: Creating Jobs and Reducing Pollution with Wind Power. (See The Hannah
Report, 08/23/2007.)
Responding to challenges that development of
renewables should be left to market forces, Skindell said,
"Utilities [currently] have a monopoly in Ohio [locked
into coal]; an RPS is needed to create a competitive market."
Acknowledging that energy efficiency and conservation are the most cost
effective forms of energy, he said he is also working on separate
legislation to address those components.
Stuebi added that, "It will be a
decade or more for offshore wind to be competitive. If Ohio
waits for a competitive market, other states will have already captured the [manufacturing] jobs." Noting that public incentives will initially be
required to develop the Lake Erie wind farm, he said, "There is so
much money to be made in on-shore wind right now, it is hard to interest
[wind energy developers] in offshore. Once the technology is demonstrated,
others will follow."
Skindell told Hannah News that HB313 could either stand
alone, or be incorporated into legislation implementing the governor's
plan. He said he had deep concerns about the nuclear energy component of the
governor's advanced energy proposal, and said the state should not be
building nuclear reactors. He added that he needs to learn more about
the safety and environmental issues (including the storage, transportation and disposal of nuclear waste), and the potential for reprocessing spent
fuel rods.
Doug Flowers of American Electric Power (AEP) said that while AEP
has not seen the specific bill, it is "obviously very interested in RESs
and will be an active part of the debate." He said one issue regarding
implementation will be cost. Flowers noted that AEP has implemented a Green
Pricing Program that allows customers to voluntarily support development
of renewable resources by purchasing renewables certificates
in blocks of
200 kw at $1.40 per month.
Ellen Raines of First Energy said they also
support development of renewables and currently have 200 MW of wind
energy under long-term contract in Pennsylvania. She
said she hopes the Ohio Legislature will look at what
can be achieved from both a natural resources availability perspective and
public acceptance in siting and building wind energy facilities at
a price customers who want them are willing to pay, rather than subsidizing the additional cost by all customers. She noted that wind
energy, with an availability of about 30 percent, requires back-up power for
when the "wind doesn't blow," which factors into the cost.
Without seeing
the specifics, Mark Craft of Duke Energy said they would probably support
such a bill depending on the timelines and targets. He said Duke is
interested in renewables to address climate change - what it does to
carbon emissions - and added that Duke energy supports cap-and-trade for
carbon emissions. Saying "there is no silver bullet," and there needs to
be a blend of fuels, Craft called energy efficiency the fifth fuel
after coal, nuclear energy, natural gas and renewables. Craft described Duke
Energy's goal as meeting customers' needs and earning a fair return on investment.
