Important Legislation Update: Renewable Portfolio Standard - SB221

6/15/2008

On May 1, Governor Strickland signed into law a new energy bill for Ohio. This law changes the market environment under which Ohio electric utilities will operate, including how utilities will procure power supplies and pass the costs on to customers in retail electricity prices.

Most notably, the new law establishes requirements for electric utilities to obtain at least 25% of their power requirements by 2025 from so-called advanced energy sources – including renewable energy (such as wind, solar and biomass), fuel cells, energy efficiency, and next-generation coal and nuclear technologies. Half of this requirement must be satisfied by renewable energy, and utilities must begin obtaining new renewable energy supplies as soon as 2010. In addition, electric utilities must implement energy efficiency programs that reduce 2025 electricity demand by 22%, with initial programs rolling out starting in 2010.

Not only will these provisions reduce the emissions associated with Ohio’s electricity sector, they will create a local market that facilitates the attraction and growth of advanced energy businesses for the Cleveland Plus economy.

Prepared by Richard Stuebi
BP Fellow for Energy and Environmental Advancement
The Cleveland Foundation

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