Major companies, trade associations, employers, and energy consumers in Ohio are celebrating today’s passage of House Bill 389 (HB 389) in the state’s House of Representatives, marking a key step toward launching new programs to reduce energy waste and keep utility prices low and predictable.
HB 389 is a bipartisan bill that would allow the state’s electric utilities to establish voluntary energy efficiency programs to encourage electricity savings of 0.5% annually. The measure would partially restore Ohio energy efficiency standards that were rescinded by the controversial passage of HB 6 in 2019, which sparked a scandal resulting in the indictment of the state’s former Speaker of the House.
Companies and other large organizations across Ohio have been pushing for new energy efficiency programs since HB 6 was passed, and have strongly supported HB 389.
“Nestlé is committed to a more sustainable future, and energy efficiency programs ensure that we are not using any more electricity than we need. This is crucial to both our financial performance, and to meeting our pollution goals,” said Megan Villarreal, manager of policy and public affairs, Nestlé. “We applaud the Ohio House of Representatives for passing this bipartisan measure to reopen these important programs in Ohio, and look forward to accessing important efficiency programs in the state soon.”
“Our company has been proud to work across the Midwest to help businesses and other organizations save money by reducing their energy waste. We were extremely disappointed by the passage of HB6, which forced us to close our Ohio location,” said Gary Swanson, president and chief executive officer, Energy Management Solutions, Inc. “We’re glad to see lawmakers in the Ohio House pass HB 389, giving Ohio a chance to overcome this setback for our industry and regain the jobs and economic activity of a modern energy sector.”
Support for HB 389 extends beyond the private sector, as well.
“When I first began working at Reynoldsburg City Schools, I was immediately struck by the burden of energy costs across our facilities,” said Chris Reed, executive director of business, Reynoldsburg City Schools. “Energy efficiency efforts have since helped save our district and our taxpayers hundreds of thousands of dollars, which is one reason I urge the Senate to act swiftly to reinstate these programs to help institutions across Ohio operate more sustainably—both financially and otherwise.”
The House’s passage of the bill comes less than three months after a coalition of dozens of organizations wrote to the House’s Public Utilities Committee, urging lawmakers to pass HB 389.
“All Ohio consumers and businesses benefit when we reduce energy waste – whether or not they participate directly in energy-saving programs,” the 30 organizations wrote in the letter, which was organized by the sustainability nonprofit Ceres. “Policies that keep energy costs low and predictable over the long-term are a major consideration for our companies as we make investments.”
The signatories — which included the Air-Conditioning, Heating, and Refrigeration Institute, Ameresco Inc., JLL, Nestlé, SCS Logistics, and the Sheet Metal and Air Conditioning Contractors' National Association — also emphasized the strong business support for energy efficiency programs that save customers money on electric bills, create jobs, and reduce pollution.
“We support the bill as an important first step toward restoring critical cost-saving programs that were eliminated by House Bill 6,” the letter said.
While HB 389 does not fully restore Ohio’s energy efficiency standards, experts expect that the new programs would save customers billions of dollars on electric bills over time, while generating significant economic activity and new jobs, as well as healthcare savings from reduced pollution.
“Reducing energy waste is crucial not only to fighting pollution and ensuring better public health, but also to the bottom lines of residences and businesses across the state,” said Deana Dennis, senior manager of state policy, Ceres. “Companies, trade organizations, large employers, and utilities all agree on the importance of optimizing the state’s energy usage, and we are heartened to see bipartisan action in agreement. We call on the state Senate to follow the House’s lead and pass HB 389 to ensure Ohio can begin restoring these critical programs immediately.”
About Ceres
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.