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The Mountaineer Wind Energy Center is shown on Backbone Mountain near Thomas, W.Va., Wednesday, July 9, 2003. The windmill farm has 44 turbines atop 228-foot-tall towers, producing enough energy to power 22,000 homes.
(Associated Press, File)
When it comes to Ohio energy policy, we've seen some steps in the wrong direction this past year.
Last May, the Ohio state legislature passed and then Gov. Kasich signed into law an ill-advised bill, Senate Bill 310, to freeze the state's renewable energy and energy efficiency standards for two years. The standards, which were passed in 2009, helped the state create 25,000 jobs and are credited with saving Ohio consumers more than $1 billion so far. As legislators work to study the effectiveness of these standards and craft legislation, it's an important time to talk about what we want Ohio's energy future to look like.
As an investor across many sectors, I've seen the value of clean energy policies in helping companies and investors grow profits, hedge their bets on volatile fuel costs, and mitigate the risks posed by climate change. Favorable clean energy policies in Ohio are one of many reasons why companies like Campbell Soup Co. and General Motors Corp. adopted solar power for their Ohio manufacturing facilities. These companies are far from alone. A recent report from Calvert Investments finds 60 percent of the Fortune 100 set greenhouse-gas-emissions reduction commitments, renewable-energy commitments, or both. These companies include globally recognized, mainstream brands like Procter & Gamble, Dow Chemical, AT&T, Walgreen's and Google. Clearly, renewable energy has entered the big leagues.
Here in Ohio, smart renewable-energy and energy-efficiency policies were responsible for driving investment, jobs and growth to our state. Now, though, the freeze on clean energy is eroding that progress. According to recent research by Pew Charitable Trusts, "an uncertain policy future -- including a freeze on the state's renewable portfolio standard and expiration of federal tax incentives -- is jeopardizing Ohio's leadership in the clean energy sector" and "dampening investment" in the state.
Meanwhile, another report estimates that between 2009 and 2012, energy-efficiency programs cost $456 million, but resulted in more than $1 billion in savings for Ohio ratepayers and produced thousands of new jobs. That's why a broad coalition of manufacturers and energy service companies -- including Honda, Scotts Miracle-Gro, Whirlpool Corp. and Ingersoll Rand -- stated in a letter to state lawmakers that the standards promoted competitiveness by keeping utility costs stable and low.
The U.S. Environmental Protection Agency's proposed Clean Power Plan also represents an exciting opportunity for Ohio to accelerate and expand successful clean energy policies. Two of the four building blocks of the plan include renewable energy and energy efficiency. It's important that Ohio's lawmakers seize this opportunity and the economic benefits that flow from clean energy policies.
Calvert Investments manages $13 billion in assets and is a shareholder in a number of Ohio companies. Investors and companies are looking for policy certainty. Calvert is working with policymakers and regulators to limit the risks of climate change to companies and shareholders. The goal is to ensure that we move towards a low-carbon economy. That's why I was pleased to participate at one of the recent stops on the Ohio's Energy Future tour. Businesses, local government officials, and researchers gathered at the University of Dayton to discuss the importance of clean energy in creating jobs and cutting energy costs.
The goal is to help provide a path forward for developing a vision that returns Ohio to a position of national leadership when it comes to clean energy. Clearly, that path should include unfreezing Ohio's renewable-energy and energy-efficiency standards. Doing so would help put us back on course to a prosperous, sustainable, clean-energy-based economy for decades to come.
Stu Dalheim is vice president for shareholder advocacy at Maryland-based Calvert Investments, which is a member of the Investor Network on Climate Risk.