Energy In the News

State utility regulators' sluggish effort to draft rules on renewable energy is stifling the potential for private investment in Ohio's fledgling solar, wind and biomass industries, Sen. Jon Husted <http://www.gongwer-oh.com/programming/bio.cfm?nameid=19802&locid=2> said Tuesday.

The Jan. 1 rulemaking deadline to implement alternative energy benchmarks included in last year's electricity regulation overhaul (SB221, 127th General Assembly) has come and gone without the Public Utilities Commission of Ohio issuing any guidelines, he complained during an event to highlight a report on the state's alternative energy industry.

"It's not up to the (PUCO) chairman to decide what laws he wants to implement and what not to implement. It's the law," he said. "If they don't like the benchmarks, they can introduce a bill and put another law in place."

The former House speaker, who championed the inclusion of more aggressive renewable standards in last year's energy bill, said the lack of rules has hindered the development of a marketplace for renewable energy credits, which place value on emissions reductions. That makes it hard for companies developing alternative energy and energy efficiency technology to find investors.

"The challenge we face right now is that we still don't have a stable marketplace for those investments," he said. "I will not let this linger much longer. We cannot afford to let the regulatory environment be unstable because of these rules."

Sen. Husted said the notion that renewable energy is too costly is "old school thinking that's put Ohio in these current economic circumstances." The renewable energy portfolio allows utilities flexibility in choosing how to meet benchmarks that gradually phase in over time.

PUCO spokeswoman Shana Eiselstein said the agency planned to issue the rules in a couple of weeks.

The delay in promulgating advanced energy rules "is purely a function of workload here at the commission," she said.

The PUCO has had to work through the electric security plans that the state's utilities filed in response to the energy bill, she said. In addition, the agency is working on rules to implement the ESPs, line extension issues, and other topics.

Green Energy Report: Although Ohio is entering the renewable energy market relatively late, there is already considerable capacity in the state, according to an Environment Ohio report issued Tuesday.

There are more than 440 businesses and research institutions working in the solar, wind, biomass, geothermal and fuel cell industries, according to the report.

"This report reveals that renewable energy holds great promise to become one of Ohio's leading economic growth engines during the economic recovery ahead," Environment Ohio Program Director Amy Gomberg said during a news conference with lawmakers and business representatives.

"Ohio is well positioned to capitalize on the burgeoning green energy economy," she said.

The study found about 115 entities were involved in solar energy, more than 220 in wind, 115 in fuel cells, 90 in geothermal, and 60 in biomass technology throughout Ohio. In addition, there are about 60 organizations providing auxiliary services.

The group recommends extending and expanding the Ohio Advanced Energy Fund and enacting legislation jointly sponsored by Rep. Mike Foley <http://www.gongwer-oh.com/programming/bio.cfm?nameid=55702&locid=2>

(D-Cleveland) and Rep. Lou Blessing (R-Cincinnati) that would require schools be constructed with "solar-ready" technology. Rep. Blessing said the measure would likely be introduced next week.

Rep. Matt Szollosi <http://www.gongwer-oh.com/programming/bio.cfm?nameid=55602&locid=2> (D-Oregon) said promoting alternative energy development in Ohio was a high priority for the House.

"Green energy means more than simply pollution reduction. It means job creation, it means industrial growth," he said.

Mark Zappe, of Johnson Controls, said his company has been involved in several large-scale renewable energy projects worth millions of dollars.

"Unfortunately, all of those large projects have been outside Ohio," he said. "What I've seen from our customers here is not a lot of interest in renewables."

However, Ohio manufacturers could take advantage of high demand in other areas that cause delays of more than one year for obtaining a large wind turbine, he added.

David Cohen, of Dovetail Solar and Wind, said the company has expanded greatly in the last few years.

"Even with the current economic recession, Dovetail is experiencing strong growth across the state," he said, predicting a 266% increase in the company's 2009 revenues.