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State Planning and Incentive Structures | Energy Efficiency Actions | Energy Supply Actions

State Planning and Incentive Structures

Lead By Example—Energy Efficiency in Public Facilities

Status: Completed

Details: Executive Order 2007 - 02S (January 2007) directs each state agency, board, and commission to conduct a statewide energy audit of its respective facilities, both owned and leased, and to achieve an overall reduction of 5% in building energy use for its facilities within a year and 15% by the end of four fiscal years.

Lead By Example—Energy Efficient Appliance and Equipment Purchase Requirements for Public Facilities

Status: In Progress

Details: Executive Order 2007-02S (January 2007) requires the design and implementation of a plan to improve the state's ability to identify and purchase the most appropriate energy efficient products.

Lead By Example—Clean Energy Goals for Public Facilities

Status: No Activity Identified

Lead By Example—Energy Efficiency and Alternative Fuel Goals for Public Fleets

Status: Completed

Details: Executive Order 2007-02S (January 2007) directs state agencies to develop a numerical goal and timeline for acquiring alterative-fuel vehicles (including hybrid-electric). The Department of Administrative Services is directed to prepare plans to establish pumps for E85 fuel, and to develop and implement a plan to raise biodiesel fuel consumption to at least 25% of state diesel purchases by 2008.
State law (revised code 125.831-125.834) requires that all new motor vehicles acquired by the state on and after July 1, 2006, for use by state agencies must be capable of using alternative fuels and must use that fuel if it is reasonably available at a reasonable price. By January 1, 2007, state flex-fuel vehicles must use at least 60,000 gallons of E85 per calendar year, increasing by 5,000 gallons per year thereafter. Vehicles that operate on diesel fuel must use at least one million gallons of biodiesel, increasing by 100,000 gallons per year thereafter.

State and Regional Energy Planning

Status: Completed/Further Work Proposed

Details: On February 21, 2008, the Ohio House released its Energy Plan, presenting more specifics and stringent language than the energy plan proposed by Governor Strickland and that passed by the Senate in December 2007.
Governor Ted Strickland released a proposed statewide energy plan ("Energy, Jobs and Progress") on August 29, 2007. The plan has three objectives: 1) Ensure affordable and stable energy prices to protect Ohio consumers and existing Ohio jobs; 2) Attract energy jobs of the future through an Ohio advanced energy portfolio standard; and 3) Safeguard Ohio families by empowering consumers and modernizing Ohio's energy infrastructure.
In February 2006, Governor Taft announced an energy action plan to better align state policies and encourage the utilization of Ohio's own natural resources. The plan includes an $80 million investment in ethanol production, which will annually convert 20 million bushels of corn into more than 56 million gallons of ethanol a year when at full capacity, and support for advanced coal technologies. The plan also proposes a new pilot incentive program to encourage more wind power production in Ohio an a government lead-by-example initiative.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (NOX Budget Trading Program)

Status: Completed

Details: Ohio's set-aside program accounts for 1% of state NOx trading program budget, or 454 tons. Energy efficient, renewable energy, and innovative technology projects are eligible, including: demand-side management practices, wind, solar, biomass, and landfill methane generation. An innovative technology project might be fuel cells, fuel additives, or controlled boilers and is defined as "Any project utilizing technology that has not been adequately demonstrated in practice, but that would have a substantial likelihood of reducing NOx emissions compared to current practices. An innovative technology project could include technology to decrease electrical energy or fuel use either in stationary or mobile sources." Projects must be one ton or larger, though smaller projects can aggregate. To be eligible, projects must apply in advance to reserve the set-asides, and submit a report afterwards as well. The compliance period goes from May 1 to September 30.

Determining the Air Quality Benefits of Clean Energy—Energy Efficiency/Renewable Energy Set Asides (CAIR Budget Trading Program)

Status: Completed

Details: The State’s energy-efficiency/renewable energy (EE/RE) and innovative technology set-aside program provisions establish two set-asides for each control period—one set-aside for EE/RE projects and one set-aside for innovative technology projects—and specify procedures for allocating the allowances in the set-asides. Each set-aside is limited to 1% of the state trading budget for NOx ozone season allowance allocations. Beginning with the end of 2009 and every three years thereafter, Ohio EPA will review the number of allowances allocated from the set-asides and will, under certain circumstances, increase the size of each set-aside in future years as necessary, up to a maximum of 5% of the state trading budget.

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Energy Efficiency Actions

Energy Efficiency Portfolio Standards

Status: Completed

Details: SB 221, signed by Governor Strickland on May 1, 2008, sets an energy efficiency savings requirement for the state. Beginning in 2009, utilities must achieve energy savings equivalent to 0.3% of the average annual normalized electric sales (kWh) during the preceding three year period. The savings requirement increases to an additional 0.5% in 2010, 0.7% in 2011, 0.8% in 2012, 0.9% in 2013, 1% from 2014 to 2018, and 2% each year thereafter, achieving a cumulative savings in excess of 22% by the end of 2025. In addition, beginning in 2009, electric distribution utilities must implement peak demand reduction programs designed to achieve a 1% reduction in peak demand in 2009 and an additional 0.75% reduction each year through 2018.
Governor Strickland's "Energy, Jobs and Progress" Plan of August 29, 2007, recommends that by 2025, utility-run energy conservation initiatives meet at least 25% of the state's growth in electricity demand and at least 10% of total peak electric demand.
The Midwestern Regional Greenhouse Gas Reduction Accord commits participating states to an overall 2% reduction in energy use by 2015. Ohio is an observer to this agreement.

Public Benefit Funds for Energy Efficiency

Status: Completed

Details: Senate Bill 221, signed by Govenor Strickland on May 1, 2008, established in the state treasury the advanced energy fund for funding the advanced energy program’s administrative costs. The amount is to be determined by dividing an aggregate revenue target for a given year by the number of customers of electric distribution utilities in this state in the prior year. The aggregate revenue target cannot exceed more than $15 million in any year through 2005 or more than $5 million in any year after 2005. Restructuring Law (SB3) signed in July 1999 includes a PBF for up to $15 million/yr for an "Energy Efficiency Revolving Loan Fund" to be administered by the state, plus a "Universal Service Rider" for low income bill assistance and efficiency. The surcharge supports the Ohio Energy Loan Fund, which provides incentives for efficiency with reduced interest loans for consumers buying energy efficient appliances. The charge is $0.0001758/kWh, which collects up to $15 million annually.

Building Codes for Energy Efficiency—Commercial Programs

Status: Goes Beyond ECPA

Details: ASHRAE 90.1-2004, mandatory statewide; can use COMcheck-EZ to show compliance. In December 2006, the Ohio Board of Building Standards adopted the 2007 Ohio Building Code, which includes the 2006 IECC; effective July 1, 2007.

Building Codes for Energy Efficiency—Residential Programs

Status: Goes Beyond ECPA

Details: ASHRAE 90.1-2004, mandatory statewide; can use COMcheck-EZ to show compliance. On December 21, 2006, the Ohio Board of Building Standards adopted the 2007 Ohio Building Code, which includes the 2006 IECC; effective July 1, 2007. 2003 IECC can no longer be used for alternative compliance

State Appliance Efficiency Standards

Status: No Activity Identified

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Energy Supply Actions

Renewable Portfolio Standards

Status: Completed

Details: On August 20, 2008, the Public Utilities Commission of Ohio (PUCO) issued a set of draft rules to implement the requirements of SB 221, which Governor Strickland signed on May 1, 2008. The law requires utilities to generate 25% of their power from advanced technology like fuel cells, cleaner coal, nuclear, or renewable sources by 2025. Half of that, or 12.5%, must come from the renewable category. The bill creates annual mandatory benchmarks, beginning at 0.25% in 2009 and 0.5% in 2010, increasing by 0.5% per year through 2014, followed by an additional 1 percent per year through 2024. In addition, 1 percentage point of the 12.5% renewable goal would have to come from solar power.
On November 15, 2007, Ohio signed the Midwestern Regional Greenhouse Gas Reduction Accord, committing to a region-wide 10% renewable energy standard by 2015.
Governor Strickland's "Energy, Jobs and Progress" Plan of August 29, 2007, recommends that 25% of electricity sold in Ohio be generated from advanced energy technology by 2025, with at least half of that total coming from renewable sources.

Public Benefit Funds for Clean Energy Supply

Status: Completed

Details: Senate Bill 221, signed by Govenor Strickland on May 1, 2008, established in the state treasury the advanced energy fund for funding the advanced energy program’s administrative costs. The amount is to be determined by dividing an aggregate revenue target for a given year by the number of customers of electric distribution utilities in this state in the prior year. The aggregate revenue target cannot exceed more than $15 million in any year through 2005 or more than $5 million in any year after 2005. Restructuring Law (SB3) signed in July 1999 includes a PBF for up to $15 million per year for an "Energy Efficiency Revolving Loan Fund" to be administered by the state, plus a "Universal Service Rider" for low income bill assistance and efficiency. The surcharge supports the Ohio Energy Loan Fund; the charge is $0.0001758/kWh, which collects up to $15 million annually. Renewable energy is included in the state's Energy Loan Fund programs.

Output-Based Environmental Regulations

Status: Completed

Details: In July 2002, the Ohio EPA established a program for issuing credits to Energy Efficiency/Renewable Energy (EE/RE) and Innovative Technology (IT) Projects in their NOx Budget Trading Program. The rules set-aside NOx allowances for EE/RE and IT projects. Demand-side programs such as lighting retrofits can also receive credits. The program will end when the Clean Air Interstate Rule (CAIR) starts in 2009. However, Ohio currently plans on having an EE/RE set-aside with output-based allocations under this new regulation.

Interconnection Standards—Clean Distributed Generation

Status: Completed

Details: Prompted by EPAct 2005, the Public Utilities Commission of Ohio (PUCO) adopted new interconnection standards for distributed generation in March 2007. These standards replaced PUCO's original interconnection standards, adopted in April 2000, and now provide for three levels of review for the interconnection of distributed generation systems up to 20 MW in capacity.

Interconnection Standards—Net Metering

Status: Completed

Details: On March 28, 2007, the Public Utilities Commission of Ohio (PUCO) approved a set of recommendations that address net metering, advanced metering infrastructure and demand response, interconnection, stand-by rates, and renewable energy portfolio standards. The action fulfills requirements of the EPAct 2005, expands the technologies allowed for net metering, and revises the rules regarding customer credits for interconnection. PUCO Staff submitted a report on August 28, 2006, calling for the removal of a 100kW capacity cap for net metering microturbines and to allow customers to request a refund for net excess generation balances for up to 1 year previous. As part of the state's 1999 electric-utility restructuring law, Ohio established net metering for renewable-energy systems, including fuel cells, and microturbines smaller than 100 kW.

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