SALEM, Ohio — Ohio residents may soon see an increase in energy prices after Gov. Mike DeWine signed a new bill in December.
The bill, known as House Bill 201, was originally designed by Republican lawmakers to prohibit restrictions on the sale of gas-powered vehicles to promote electric vehicles. However, new language was added 36 hours before the bill passed that allows gas companies to charge Ohio residents more to fund megaprojects.
What is House Bill 201?
The bill, sponsored by Republican state Reps. Brett Hudson Hillyer and Steve Demetriou, prohibits the Ohio Environmental Protection Agency and local governments from placing bans or restrictions on gas-powered vehicles to promote the sale of electric vehicles.
According to Hillyer, the bill is set to “ensure consumer freedom” for Ohioans.
“The legislation will prevent undue burdens on our residents, particularly those in low-income communities who may struggle with the higher costs of transitioning to electric vehicles,” Hillyer said, in a press release. “Ohio is not California and therefore, should not be treated as such.”
HB201 is possible through the Clean Air Act, which allows states to enact stricter emission standards. In August 2022, California became the first state to enact these stricter emissions standards through a plan to phase out gas-powered vehicles with zero-emission (electric) vehicles by 2045.
Ohio has now become the second state to enact a similar rule with HB201, but one that does the exact opposite of California’s.
The bill will also charge Ohio’s roughly 3.7 million natural gas users up to $1.50 a month for five years to support megaprojects such as construction and upgrades to pipelines, whether they come to fruition or not.
The new charge is a reaction to a lack of large development projects being developed in more rural parts of Ohio, according to DeWine. The bill is set to increase necessary infrastructure in rural areas for megaprojects.
Reactions to HB201
This isn’t the first time lawmakers have tried to pass a bill like HB201. Over the summer, DeWine vetoed a similar bill, but after adjustments were made to make the wording “more palatable” the legislation went through in December, according to Dan Tierney, spokesman for the governor.
Natural gas companies praised the decision, saying it will provide them with funds to ready sites for faster development. They said the bill will also attract more companies as industrial buyers want “shovel-ready” sites already equipped with water, gas, electric and sewage.
Others like Democratic lawmakers, the Ohio Manufacturers Association and environmental groups say the decision will allow customers to pay private corporations for infrastructure and upgrades that may not be necessary yet in the guise of “economic development.”
“The problem with speculative, Field of Dreams, ‘If you build it, they will come,’ is if they don’t come, we and all ratepayers are left holding the bag,” said Kim Bojko, a lobbyist with the Ohio Manufacturers Association.
According to Bojko, currently, regulators only pass costs on to customers when a site is deemed “used and useful.” Instead, the bill will take consumer money without assurance it will go to a facility in their area.
Democratic Sen. Kent Smith also states the bill may disadvantage consumers.
“This would allow them to spend money on site development where there might not ever be a site developed,” Smith said at a legislative hearing for the bill. “Ratepayers would still pay for that and utilities would still make a profit on it.”
(Reporter Liz Partsch can be reached at epartsch@farmanddairy.com or 330-337-3419.)
