April 3, 2025
Smart Energy Policy Is Advancing in Ohio, Let’s Make It Stronger
By Jesse Velazquez
Ohio is on the verge of passing the most comprehensive energy legislation in years. Both Senate Bill 2 (SB 2) and House Bill 15 (HB 15) contain a suite of forward-looking energy policies that, if finalized with the strongest provisions intact, could lay the foundation for a more affordable, reliable, and locally driven energy future.
These bills are moving quickly. SB 2 passed unanimously out of the Ohio Senate on March 19, a strong signal of bipartisan support for much-needed energy reform. Meanwhile, HB 15 passed out of the Ohio House of Representatives on March 26 with a vote of 92 in favor to 3 in opposition. One of these two bills will ultimately be chosen as the vehicle to advance these energy reforms into law. As that process unfolds, the Ohio Environmental Council Action Fund (OEC Action Fund) will continue to advocate for the strongest environmentally and community-centered provisions to be included in the final version.
Here’s what’s in the bills.
A Big Win For Ratepayers and Local Communities
Both SB 2 and HB 15 include reforms correcting long-standing issues in Ohio’s energy system. These bills could position the state for a cleaner, more resilient future. The wins include:
Immediate repeal of OVEC coal subsidies: For years, Ohioans have been footing the bill for aging coal plants, one of which isn’t even located in Ohio. Ending these subsidies will save ratepayers hundreds of millions of dollars and finally close the chapter on an outdated and unnecessary burden.
Elimination of Electric Security Plans (ESPs): These opaque pricing mechanisms have been used to pass hidden utility charges onto consumers for years. Replacing ESPs with more transparent and accountable rate-making is a win for fairness, ratepayers, and public trust.
Support for schools through the School Energy Program (in SB 2): This new low-interest loan fund helps Ohio public schools install solar panels and energy efficiency upgrades, cutting energy bills and freeing up funding for classrooms.
Incorporating demand response (in SB 2). Demand response programs reward customers for reducing energy use during peak demand, lowering system costs, and enhancing grid stability.
Investments in Community Energy (in HB 15): The creation of a Community Energy Pilot Program empowers communities to pursue local, consumer-focused energy solutions, allowing customers to subscribe directly to solar (or other energy) projects in Ohio without having to put it on their roofs or purchase renewable energy credits. In addition to creating a new market for solar, these projects will help improve reliability outages, lower electric bills, and expand access to clean energy, especially in underserved areas.
Improving grid transparency and planning (in HB 15). The introduction of heat maps, hosting capacity maps, and stronger reliability metrics, gives communities and developers valuable tools to identify where energy projects can best connect to the grid. Stronger reliability metrics will help better identify exactly where frequent outages occur, and how long. This data will be crucial for ensuring disadvantaged communities aren’t left behind in the clean energy transition, and that we know exactly where utilities are investing, and the results of that investment.
Modernizing Ohio’s transmission system (in HB 15). The adoption of Advanced Transmission Technologies (ATTs) make our transmission infrastructure more efficient, reliable, and prepared for electrification and renewable growth. ATTs help us get more out of our existing grid, allowing us to maximize grid potential before building new transmission projects.
What We’ll Keep Advocating For
As one bill is chosen to move forward and final negotiations take place, the OEC Action Fund will continue to champion the provisions we listed above as well as advocate for the following improvements:
A balanced approach to siting reform. We support the inclusion of Priority Investment Areas (PIAs) to encourage renewable development on brownfields and former coal sites (currently in both bills). Along with this, we support making the energy project review process more efficient, but it must not come at the expense of community engagement and environmental review. We advocate for longer siting review timelines to allow for meaningful public input.
Stronger guardrails for multi-year forecasting: The new rate-making process must include safeguards to prevent utilities from overestimating costs. For example, requiring a yearly “true-up” process would ensure if utilities collect more money than they actually need, the excess is refunded back to consumers.
Improved options for schools: The OEC Action Fund strongly supports the creation of a School Energy Program. We’re advocating to strengthen it by allowing schools to have longer repayment periods and access to third-party PPAs, an option that’s already working successfully in other states.
Let’s Keep the Momentum Going
The energy decisions made today will shape Ohio’s future for decades to come. SB 2 and HB 15 are not perfect, but they lay important groundwork for cleaner, smarter, and fairer energy policy. These pieces of legislation show that we can have reforms that support local clean energy, protect ratepayers, and still make room for economic growth.
As the bills advance, we’ll continue pushing to keep the good and improve what needs strengthening. Ohioans deserve an energy system that works for everyone, not just utility shareholders or fossil fuel interests.
Let’s get this right Ohio.
