This story was originally published by Canary Media.
Ohio has earmarked $100 million for new energy initiatives, sparking controversy due to its exclusion of renewable energy projects from funding eligibility. Critics have voiced concerns over the transparency of the decision-making process.
Governor Mike DeWine, a Republican, unveiled the JobsOhio Energy Opportunity Initiative last October. This initiative, managed by JobsOhio—a private entity free from the state’s public records law—is funded by revenues that formerly came from taxes on alcohol sales, now directed to JobsOhio instead. This fund is intended to provide grants and loans to enhance energy supply and access in the state.
The initiative restricts applications to natural gas infrastructure and small modular nuclear reactors, sidelining solar and wind energy despite their cost-effectiveness and speed of deployment. This preference for fossil fuels and nuclear energy over renewables has drawn criticism.
Details about applicants have been sparse. According to JobsOhio spokesperson Matt Englehart, there is “significant interest” from companies, though specifics will remain undisclosed until agreements are finalized.
Questions regarding potential ethical issues have been raised. Columbus attorney John Kulewicz, who is running for Ohio attorney general, has filed an ethics complaint concerning Josh Rubin, chair of JobsOhio’s board, who is also involved in lobbying for American Electric Power (AEP). AEP could benefit from a bill that would allow utilities to own nuclear plants.
JobsOhio maintains no ethical breaches have occurred, though its exemption from public records law limits transparency. “JobsOhio has been exempted from most transparency regarding its activities,” Kulewicz stated, with the inspector general now investigating the matter.
Tammy Ridout, spokesperson for AEP, denied any wrongdoing, asserting, “Any suggestion that we would pursue actions contrary to the best interests of our customers is categorically false.” She clarified that while other lobbyists at Rubin’s firm work with AEP, Rubin himself does not.
An opaque process
Governor DeWine defended the initiative, emphasizing the reliability of natural gas and nuclear projects over renewable sources, which he described as “intermittent.” This aligns with arguments supporting recent legislation that may hinder the development of new solar or wind farms in Ohio.
Despite advancements in battery technology that allow solar power storage for nighttime use, Ohio’s energy strategy remains focused on traditional energy sources. The PJM Interconnection region, which includes Ohio, recently faced a shortfall in meeting its reliability target, suggesting a need for diverse energy solutions. “We can use all the capacity we can get,” stated PJM spokesperson Jeff Shields.
Englehart from JobsOhio explained that natural gas and nuclear projects come with commitments of job creation and investment, though he provided no specifics. He differentiated utility-scale renewables as lacking these ties to economic development and job growth.
While renewable energy manufacturing could potentially access funds, it would require a natural gas pipeline extension. Englehart mentioned an unrelated $1 million grant for a solar panel supplier expansion, illustrating limited support for renewable energy ventures.
Building new natural gas plants or small modular reactors is time-intensive, contrasting with the quicker deployment potential of solar and battery projects. Michael Benson of Green Energy Ohio noted, “solar and batteries are cheaper,” advocating for their inclusion in energy funding strategies.
Original Story at ohiocapitaljournal.com