Thursday, July 25, 2019

Ohio’s New Law a Blow to Renewable Electricity Mandate Momentum (Washington Examiner, Josh Siegel, Daily on Energy)


(COLUMBUS, OH) -- Ohio’s controversial law approved this week to weaken, and eventually, kill a renewable electricity mandate program represents a departure from a recent trend of states increasing the ambition of their policies to combat climate change.

“Its adoption underscores some of the political challenges states face in transitioning toward more carbon-friendly electricity sources,” Barry Rabe, a professor of public policy at the University of Michigan, told me.

Senior Political Correspondent David Drucker on the expanded Washington Examiner magazine

Climate change mitigation advocates, researchers, and public policy experts tell me they don’t expect other states to follow Ohio’s lead, but any backtracking could hamper attempts to reach 100% clean electricity.

“It’s not necessarily that we will see a trend of RPS rollbacks,” said Leah Stokes, an assistant professor of environmental politics at the University of California at Santa Barbara, who is writing a book on state renewable portfolio standards. “But to have 100% clean electricity by 2050, we need to be growing renewables by percentage points each year. Repeals are the worst of all scenarios, but it’s just a manifestation of another trend, which is delay. We are behind.”

Why Ohio law is unique: Ohio’s law — approved by the state’s Republican-led legislature and signed by Republican Gov. Mike DeWine — is truly unprecedented, and had been years in the making, pushed by politically influential bankrupt utility FirstEnergy Solutions.

Its core purpose is to subsidize uneconomic nuclear and coal plants, but in addition to doing that, it takes away money from renewable electricity and efficiency mandates. It shrinks Ohio’s renewable portfolio standard goal of 12.5% to 8.5% and cancels the program after 2026.

Other states, such as Illinois, New York, and New Jersey, have also implemented programs to compensate nuclear plants to keep them running, but those Democratic-leaning states have done so for climate change reasons, given nuclear’s zero-carbon value. Those states have simultaneously increased renewable mandates as part of their nuclear aid.

More than half of the states, some of them Republican-led, have adopted clean electricity standards or more restrictive renewable portfolio standards.

“We consider Ohio an outlier of the broader trend in which states are strengthening renewable mandates,” said Timothy Fox, vice president at ClearView Energy Partners, a research group. “We don't expect this to meaningfully change national renewable deployment.”

Ohio’s place in decarbonization efforts: Ohio was already a clean energy laggard, with policies on the books hostile to building large wind farms. It adopted its renewable electricity standard in 2008, passing unanimously on Earth Day. But in 2014, Republican backlash prompted Ohio to become the first state to freeze its renewable program (which lasted 2 years). Republican-controlled states West Virginia and Kansas have also rolled back renewable standards, but the West Virginia program was voluntary, and Kansas is already generating plenty of electricity from wind.

Ohio is the second-worst state in the country for renewable electricity generation, at 2.5% in 2018, according to the Energy Information Administration.

Ohio is the third-largest coal consuming state in the country, although natural gas has increased its share of the state’s electricity lately. It is one of the nation’s top emitters of carbon dioxide from the power sector, a fact that stands to get worse from the new law subsidizing coal plants, and gutting the renewable mandate, which experts say would outweigh the emissions benefits of keeping the nuclear plants running.

“Ohio was never going to be leading the pack on renewable energy,” said J.R. Tolbert, vice president of state policy at Advanced Energy Economy. “But what matters about Ohio is that it one of the leading emissions states, and this legislation isn't going to help that.”