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Green energy legislation could lure projects to state

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By William Hershey, Columbus Bureau 9:47 PM Tuesday, May 18, 2010

COLUMBUS —The Ohio Senate went “green” in a bipartisan way on Tuesday, May 18, voting 28-4 for legislation aimed at attracting renewable energy projects such as wind farms and the jobs they create to the state.

A vote on similar legislation is expected today, May 19, in a House committee. Backers of the proposals in both chambers are optimistic about getting a final version to Gov. Ted Strickland for his signature before the legislature breaks for the summer.

Strickland has called on the legislature to approve such legislation and hopes differences can be worked out, said Amanda Wurst, his spokeswoman.

One wind project is pending in Champaign County.

Sen. Chris Widener, R-Springfield, Senate Bill 232’s sponsor, said the tax incentives it provides are needed to help Ohio catch up with other states in attracting renewable energy projects.

Widener said the bill would create 700 “green” jobs over the next two to three years.

However, Sen. Karen Gillmor, R-Tiffin, a “no” vote, called the proposal “corporate welfare” that the economically distressed state can’t afford.

Ohio now is last in the Midwest in the amount of renewable energy capacity the state has and in renewable energy facilities, Widener said. Also, the energy bill passed in 2008 requires that 12.5 percent of Ohio’s electric energy must be generated from renewable sources by 2025.

Ohio’s current effective tax rate for renewable energy technologies is up to eight times higher than neighboring states competing for the same projects, according to the American Wind Energy Association.

Senate Bill 232 would set up a new taxing system for projects in operation by 2013. Instead of paying property tax, including the tangible personal property tax on equipment and machinery, companies would pay an annual fee of $7,000 per megawatt for the life of the facility. This is comparable to fees in neighboring states, said Widener.

However, to qualify for the new tax treatment, the company would have to get approval from county commissioners in the county where the project would be located. Also, county commissioners could add additional requirements, including modifying the payment to be made in lieu of property taxes.

The new system would apply to wind and solar projects and to electricity generated by clean coal technology, advanced nuclear technology and cogeneration technology. An amendment to the bill would extend to 2017 the deadline for setting up clean coal and nuclear projects.

Contact this reporter at (614) 224-1608 or whershey@DaytonDailyNews.com.

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