Senate Bill 294 could impact Ohio’s energy rates, will overhaul energy siting policy

COLUMBUS, Ohio (WSYX) — Ohio lawmakers are considering legislation that would formally define the state’s energy siting policy, prioritizing affordable, reliable, and clean energy sources while reducing reliance on foreign competitors.

Senate Bill 294, sponsored by Senators George Lang and Mark Romanchuk would enact a new section of Ohio law governing how energy projects are evaluated by the Ohio Power Siting Board.

The bill declares that, in all cases involving applications for utility facility certificates, the state must emphasize energy security through cost stability, grid reliability, domestic production, and infrastructure independence.

Under the legislation, Ohio would be required to favor energy sources that meet newly defined standards for affordability, reliability, and cleanliness. An “affordable energy source” is defined as one with stable and predictable costs that provides cost-effective heating, cooling, and electricity generation, while delivering savings comparable to certain federally recognized energy sources over the past five years. Advanced nuclear energy technologies are explicitly excluded from the bill’s definition of affordability.

“The ultimate mission is to lower energy costs in the State of Ohio,” Senator Lang told ABC 6 Tuesday. “Energy is so critical to our economy. Right now, if you look at what advanced manufacturing needs, we need to dominate in the advanced manufacturing market if we’re going to succeed.”

SB 294 outlines what qualifies as a “reliable energy source,” requiring energy resources to be available at all times with minimal interruptions. For power generation, qualifying sources must maintain a minimum capacity factor of 50%, be fully dispatchable, and have the ability to ramp production up or down within an hour to stabilize the electric grid. The bill further states that reliable sources must be able to complement renewable energy during periods of low availability.

SB 294 defines “clean energy sources” as those that meet federal air quality standards under the Clean Air Act, including nuclear energy and natural gas. The bill references federal law in determining which energy sources qualify and allows hydrocarbons to be considered clean if they comply with national ambient air quality standards. Opponents took to the podium during Tuesday’s Ohio Senate Energy Committee hearing.

“The bill undermines our ability to meet rising demand, adapt to generation retirement and build a resilient grid,” explained Evangeline Hobbs with American Clean Power.

Hobbs testified against SB 294, stating Ohio is in need of policies that expand energy options, not restrict them. “Excluding renewables from the definition of reliable energy, as SB 294 does, undermines the states ability to meet future demand and weakens grid resilience,” she said. “At precisely the moment where Ohio needs every available energy source, this bill would tie the state’s hands.”

Hobbs added if no ‘new clean power’ is added in the state, rates could increase by 140% by 2032.

Critics add SB 294 could raise rates for consumers and harm the environment by defining natural gas as a clean energy source.

“The legislature should not be deciding this. Let the market decide. If power grids are uneconomical, they will not be built,” said Janine Migden-Ostrander, Institute for Energy Democracy Fellow at Pace University.

A key component of the legislation is its emphasis on domestic production. Except for energy generated by nuclear reactions, the bill directs the state to prioritize fuel sources primarily produced within the United States. The proposal also seeks to limit dependence on foreign adversary nations for critical materials and manufacturing by prioritizing secure energy infrastructure.

If passed, SB 294 would not mandate specific energy projects but would guide how the Ohio Power Siting Board evaluates applications for power plants, transmission lines, and other major energy facilities. Supporters say the policy framework is intended to strengthen Ohio’s energy independence while ensuring stable prices and grid reliability for residents and businesses.

During the Ohio Senate Energy Committee hearing Tuesday morning, Chair Brian Chavez denied ABC 6’s request to record the discussions surrounding SB 294.

SB 294 is moving through the Ohio Senate with no set timeline of when this bill could be voted on.