Legislative News

The Ohio Senate’s action last week to pass Sen. Chris Widener’s legislation (SB 232) granting advanced energy developers abatements from the tangible personal property tax sent the issue to the House, which has been considering a separate measure with some notable differences.

Keary McCarthy, spokesman for Speaker Armond Budish (D-Beachwood) said speaker intends to take action on either the Senate or House proposal prior to summer recess.

The House Ways & Means Committee, which has been deliberating on the House’s version (HB 464) sponsored by Rep. Roland Winburn (D-Dayton), is not scheduled to consider the bill this week. The only proposal on the panel’s agenda is a Republican plan to eliminate the personal income tax (HB 400).

Significant differences between the two chambers’ versions involve job-creation requirements and eligible technologies. While the Senate would extend tax breaks to certain forms of advanced coal and nuclear technology, the House measure is limited to wind and solar power.

Ms. Wurst said the governor was pleased that both chambers were working on the issue, and took a pass on specifying which chamber’s version Mr. Strickland preferred.

“The governor hopes that the differences in the bills can be worked out in a bipartisan way and arrive on his desk for signature before the legislature breaks for the summer,” she said.

During the American Wind Energy Association’s (AWEA) annual WINDPOWER Conference in Dallas on Monday, Gov. Ted Strickland announced a partnership between General Electric (GE) and the Lake Erie Energy Development Corporation (LEEDCo) to harness the wind power off Lake Erie and develop the first fresh water offshore wind farm in North America.

 HB 7, which would require a building or structure erected or constructed using state capital moneys to adhere to certain sustainability standards, received another hearing May 19 before the Senate Finance and Financial Institutions Committee. 

Three witnesses testified in support of the bill: Jen Miller of the Sierra Club; Jack Pounds, president of the Ohio Chemistry Technology Council; and architect, Alan Warner, AIA, AIA-Ohio Chairman of the Committee on the Environment (COTE) also representing the U.S. Green Building Council Cincinnati Chapter.

Warner said the bill  – Reduces building lifecycle costs for energy use, building maintenance and operation. – Safeguards occupant health and improves worker productivity through improved indoor air quality, capture and use of natural light, and improved work space design. – Enhances energy savings and water efficiency while reducing air emissions.  Answering a question from Senator Kearney, Warner said that the Ohio School Facilities Commission (OSFC) has added 3% to cover the cost of additional construction costs, energy modeling, daylight modeling, enhanced commissioning and LEED documentation fees and that it should be expected that this additional cost should be conservatively recovered in 2 1/2 to 5 years.

Miller told the committee, “This legislation embraces a sensible approach to assuring that building construction projects funded with state funds embrace energy efficiency and sustainable design concepts. By combining both energy efficiency and environmental performance standards into one piece of legislation, Ohio will be a national leader in its requirements for state-funded buildings.”

Pounds said his group had objected to the original version of the bill because it relied on only one rating system, excluding “other equally credible programs.” He said his group also felt the bill could have done more to “increase demand for high-tech content building materials produced by Ohio‘s chemical industry.” Now, the council supports the bill for the following reasons:

– It also includes the Green Globes rating program – and any other comparable program – as equivalents to the LEED rating system. – The bill now includes a requirement that energy efficiency ratings in covered projects must exceed the American Society of Heating, Refrigerating, and Air Conditioning Engineers by 30 percent or achieve a rating of 77 through the U.S. EPA’s Energy Star Rating program. He said this makes energy efficiency targets easily measured. – It includes incentives for the use of energy efficient building materials that are made by companies with significant investments in Ohio. – It focuses on significant building projects, eliminating coverage for a “lot of small projects.” – It includes a mandate that the cost of compliance with the energy conservation requirements be recovered in measurable energy cost savings within 20 years.

It is an unusual day when a core of Senate Republicans oppose legislation that goes on to pass by a significant margin. But it happened Tuesday when the Senate voted on the renewable energy tax bill, SB232 (Widener).

SB232 came in for ideological debate with Sen. Gillmor providing a litany of budget challenges the state faces in the near future, telling the chamber that because the state is a “poor state” “let  perfect wind energy and we can continue to build the parts.” She went on to call the approach “corporate welfare.”

“I just can’t vote for it knowing what the state faces next year.”                  

That bill was amended four times on the floor including a provision that takes a section dealing with rural electric companies back to current law; one that clarifies how the impact of wind programs on local roads and bridges can be evaluated; one that extends to five years the window for developing a clean coal or nuclear alternative energy source; and the last one, correcting a provision from SB223, which had been rolled into the bill.

The bill now goes to the Ohio House where a similar Strickland backed bill, HB 464 is undergoing hearings.

The Senate Energy and Public Utilities Committee accepted amendments Tuesday to Sen. Chris Widener’s (R-Springfield) legislation on alternative energy taxation, SB232, with a favorable vote on the legislation expected at Wednesday’s hearing.

The Controlling Board unanimously approved three pilot projects for construction reform on Monday, with one Republican member expressing hope that the projects will be extended to all state construction in the future.

The projects are the $1.75 million renovation of Emery Hall at Central State University; the $1 billion medical center campus project at Ohio State University; and the $7.8 million renovations of the Bowman Oddy Laboratories Building and Wolfe Hall at the University of Toledo. (See The Hannah Report, 3/25/10.)

Paolo DeMaria, the executive vice chancellor of the Board of Regents, told the Controlling Board that the guidelines under HB318 (Sykes) gave the chancellor flexibility in picking the projects and any of the five that were submitted for consideration could have been chosen.

The Ohio State hospital project was selected because it was the largest submitted and there are a variety of uses and approaches that could be studied through that process, he said. TheCentral State project was a small project and would test the use of assistance from the Department of Administrative Services (DAS).

He said the last project for the University of Toledo was selected because it was mid-sized and was the only one that had a strictly educational purpose. The University of Cincinnati andKent State University also submitted projects but not were selected.

Sen. John Carey (R-Wellston) asked if it would have been better to have five projects instead of three in the bill. DeMaria replied that the Regents support construction reform for all projects but will take the guidelines outlined in HB318 and use them to evaluate the three that were allowed.

When asked why he thought more were not submitted for consideration, DeMaria said that the projects will be under more scrutiny than what universities might be used to. He also said that many projects might have been not far enough along or too far along to fit into the pilot project.

Sen. David Goodman (R-New Albany) said he was disappointed that the reform was not across the board, and said he wants the pilot projects to lead to such reform. He asked how the projects will be studied for their effectiveness and efficiency. DeMaria said an outside consultant will be hired to gauge the process.

The Ohio Historic Preservation Office of the Ohio Historical Society announced that private investment of more than $2 billion has now been reached in Ohio projects using the federal historic rehabilitation investment tax credit. The credit encourages owners of historic properties to renovate buildings listed in the National Register of Historic Places.

Ohio has consistently placed in the top five states on the number of projects awarded the credit.

The Senate Energy and Public Utilities Committee  took additional testimony, March 24 on SB 232, introduced by Sen. Chris Widener, FAIA which would exempt from taxation renewable energy facilities that are not financed through the Ohio Air Quality Development Authority and require a payment in lieu of taxes on the basis of each megawatt of production capacity in such facilities.

The committee heard from numerous Ohio residents, advocates and Ohio school board associations weighing in on the fiduciary impacts of the legislation and quality of life issues.

First to testify was Economic Development Director Connie Neininger of White County, Indiana, who wanted to offer her perspective on the economic impacts of wind farm development and the financial incentives that were given in her state.

Like the rural areas in Ohio supporting the idea of large-scale wind farm development, White County is also a strong agricultural community with 323,000 acres of land, she said.

In the fall of 2006, she said they had three different wind development companies in the county interested in developing commercial wind farms. As the companies selected locations and constructed their meteorological towers, the economic development office worked with county officials on creating zoning ordinances and gathering data from across the country on wind development procedures. They also hired a legal firm and financial advisors to help analyze the impact of the projects.

Horizon Wind Energy’s Meadow Lake Phase I project – five phases total – consisted of 121/ 1.65 megawatt (MW) turbines for a total nameplate capacity of 200MW. The Phase I project covers approximately 26,000 acres and was constructed at a capital investment of $430 million. The construction began in February 2009 and was complete and brought online in October 2009. Currently, Neininger said, Phase II is now under construction and Phases III and IV are scheduled for later this month. The total project is 600MW and will consist of 350 turbines, which spans approximately 84,000 acres.

Indiana allowed tax abatement on personal and real property for a maximum of 10 years so long as the property is located in an Economic Revitalization Area, which county officials had to create by vote.

Neininger said the project has brought additional commerce to the community, and several hospitality businesses that would have closed remain open. She said the workforce was not all from Indiana because the industry is so specialized.

A coalition of Ohio’s educational advocates testified as interested parties and offered a few concerns to the members to consider as the substitute bill moves forward.

Barbara Shaner, representing the Ohio Association of School Business Officials (OASBO), testified on behalf of the representatives who were present at the hearing from the Buckeye Association of School Administrators (BASA), Ohio School Boards Association (OSBA), the Ohio Education Association (OEA), and the Ohio Federation of Teachers (OFT).

“We understand the desire to promote alternative energy production in Ohio and we want to participate in discussions about the issues and proposals in the bill,” Shaner said. “Because SB232 will have an impact on property tax revenues for local governments and schools, we want to make sure that the local tax dollars invested will result in a good return for Ohio and for the local communities affected.” Based on information from the Ohio Power Siting Board (OPSB) and the original version of the SB232, the organizations submitted an analysis from the Education Tax Policy Institute (ETPI) authored by Bill Driscoll and Dr. Howard Fleeter.

Shaner said that ETPI prepared information from state and national sources on appropriate tax levels for wind development. In addition, they prepared an analysis of the proposed investment in the wind energy projects that are likely to qualify for tax exemption related to the return on investment to local communities, and an analysis of job creation.

Shaner, according to ETPI analysis, also said that the Job and Economic Development Impact (JEDI) model would not be an accurate measure if the local property taxes are allowed to be significantly abated. She did say, however, that it is appropriate to use the JEDI model, but that it should not be placed in law as a true measure.

Chairman Widener disputed the information set out in the ETPI and discussed his concerns with Fleeter. He told Widener that he would adjust his analysis to fit the provisions of substitute SB232.

Also testifying were 11 Ohio residents of Logan, Champaign, Van Wert and Richland counties in opposition to the wind turbines, not only on financial impacts, but on the impacts to health, well-being and quality of life.  Testifying either in person or by submitting written testimony were Brett Heffner, resident of Van Wert; Tom Stacy and Steve and Mary Mortimer, from Logan County; Wayne Taylor, James Cole, Julie Johnson, Dianne McConnell and Anita Bartlett, from Champaign County; and John Warrington of Tiro.

Gene Poole, of VanWert, said that in his community, Iberdrola, a renewable energy company from Spain is planning to build a large wind farm. He said the problem is that no one has information about the company or its intentions for construction. However the company has offered residents to sign a “Good Neighbor Agreement” under which they would be given $2,000 up front and $1,000 every year thereafter. “Iberdrola denies any negative effects associated with wind turbines, yet they are willing to pay me for my silence should anything negative happen,” said Poole. Poole concluded by stating that Iberdrola is an encroachment, and that granting them a tax abatement under such circumstances would be irresponsible on the part of the Ohio Legislature.

“And any company that truly believes in the authority of its product should never suggest burdening the people’s health and economic welfare as necessary to its survival.”

The House Ways and Means Committee took testimony March 24 on HB464 which would exempt qualifying wind and solar energy facilities from property taxation for up to 20 years and to require payments in lieu of taxes on the basis of each megawatt if production capacity of such facilities.  The bill is similar to SB 232, introduced by Sen. Chris Widener, FAIA.

Committee members heard proponent testimony for the bill, which would exempt qualifying wind and solar energy facilities from property taxation for up to 20 years and would require payments in lieu of taxes on the basis of each megawatt of production capacity of such facilities.

Connie Neininger, economic development director for White County, Indiana, testified about the impact of a wind farm development in White County, an agricultural community that began researching wind energy when three different wind energy companies began courting their community. So far, the wind farm has been an asset to the community, she said.

Construction of the project brought many workers, which increased sales for local restuarants and hotels. The Indiana company that was the contractor for Phase 1 hired local residents for the job. Tourism season was extended to year-round, Neininger said, and schools are using the wind farms for education, starting tours of wind farms and hosting speakers. A local community college developed a sustainable energy curriculum to train the workforce. Neininger said the wind company is a good neighbor, causing minimal disruption of the farmland and preserving the land for farming for the future. The total project will measure 600 megawatts and consist of 350 turbines that span 84,000 acres.

Eric Thumma, director of institutional relations for Iberdrola Renewables, Inc., testified in support of the bill.

“Ohio’s existing tax regime puts wind development here at a significant disadvantage relative to other neighboring locations,” Thumma said. “HB464 mitigates that disadvantage while providing a known, stable, and significant stream of tax revenue to local communities – tax revenues that would possibly go completely unrealized if investments in proposed commercial scale wind projects are discouraged through the current uncompetitive tax regime.”

Written testimony was submitted by Clair Dudgeon, a Van Wert County commissioner who expressed support for the bill and said it would help the county compete with neighboring communities across the Indiana border.

Also providing written support of the bill was Robert Wannemacher, treasurer of the Wayne Trace Local School District in Haviland. Wannemacher suggested the tax rate of $6,000 per megawatt capacity should be raised to $10,000 or $12,000 per megawatt, which would place Ohio in the median of states with wind turbines.

Elaine Siler, a land owner in Van Wert County, also submitted written testimony in support of the bill as a way to keep Ohio competitive and make positive changes for the future.

Phil McClure, a retired farmer and property owner in Van Wert County who has signed a contract with a wind company to build wind mills on an 80 acre farm also wrote in support of the bill.

The Ohio Senate’s action last week to pass Sen. Chris Widener’s legislation (SB 232) granting advanced energy developers abatements from the tangible personal property tax sent the issue to the House, which has been considering a separate measure with some notable differences.

Keary McCarthy, spokesman for Speaker Armond Budish (D-Beachwood) said speaker intends to take action on either the Senate or House proposal prior to summer recess.

The House Ways & Means Committee, which has been deliberating on the House’s version (HB 464) sponsored by Rep. Roland Winburn (D-Dayton), is not scheduled to consider the bill this week. The only proposal on the panel’s agenda is a Republican plan to eliminate the personal income tax (HB 400).

Significant differences between the two chambers’ versions involve job-creation requirements and eligible technologies. While the Senate would extend tax breaks to certain forms of advanced coal and nuclear technology, the House measure is limited to wind and solar power.

Ms. Wurst said the governor was pleased that both chambers were working on the issue, and took a pass on specifying which chamber’s version Mr. Strickland preferred.

“The governor hopes that the differences in the bills can be worked out in a bipartisan way and arrive on his desk for signature before the legislature breaks for the summer,” she said.

During the American Wind Energy Association’s (AWEA) annual WINDPOWER Conference in Dallas on Monday, Gov. Ted Strickland announced a partnership between General Electric (GE) and the Lake Erie Energy Development Corporation (LEEDCo) to harness the wind power off Lake Erie and develop the first fresh water offshore wind farm in North America.

 HB 7, which would require a building or structure erected or constructed using state capital moneys to adhere to certain sustainability standards, received another hearing May 19 before the Senate Finance and Financial Institutions Committee. 

Three witnesses testified in support of the bill: Jen Miller of the Sierra Club; Jack Pounds, president of the Ohio Chemistry Technology Council; and architect, Alan Warner, AIA, AIA-Ohio Chairman of the Committee on the Environment (COTE) also representing the U.S. Green Building Council Cincinnati Chapter.

Warner said the bill  – Reduces building lifecycle costs for energy use, building maintenance and operation. – Safeguards occupant health and improves worker productivity through improved indoor air quality, capture and use of natural light, and improved work space design. – Enhances energy savings and water efficiency while reducing air emissions.  Answering a question from Senator Kearney, Warner said that the Ohio School Facilities Commission (OSFC) has added 3% to cover the cost of additional construction costs, energy modeling, daylight modeling, enhanced commissioning and LEED documentation fees and that it should be expected that this additional cost should be conservatively recovered in 2 1/2 to 5 years.

Miller told the committee, “This legislation embraces a sensible approach to assuring that building construction projects funded with state funds embrace energy efficiency and sustainable design concepts. By combining both energy efficiency and environmental performance standards into one piece of legislation, Ohio will be a national leader in its requirements for state-funded buildings.”

Pounds said his group had objected to the original version of the bill because it relied on only one rating system, excluding “other equally credible programs.” He said his group also felt the bill could have done more to “increase demand for high-tech content building materials produced by Ohio‘s chemical industry.” Now, the council supports the bill for the following reasons:

– It also includes the Green Globes rating program – and any other comparable program – as equivalents to the LEED rating system. – The bill now includes a requirement that energy efficiency ratings in covered projects must exceed the American Society of Heating, Refrigerating, and Air Conditioning Engineers by 30 percent or achieve a rating of 77 through the U.S. EPA’s Energy Star Rating program. He said this makes energy efficiency targets easily measured. – It includes incentives for the use of energy efficient building materials that are made by companies with significant investments in Ohio. – It focuses on significant building projects, eliminating coverage for a “lot of small projects.” – It includes a mandate that the cost of compliance with the energy conservation requirements be recovered in measurable energy cost savings within 20 years.

It is an unusual day when a core of Senate Republicans oppose legislation that goes on to pass by a significant margin. But it happened Tuesday when the Senate voted on the renewable energy tax bill, SB232 (Widener).

SB232 came in for ideological debate with Sen. Gillmor providing a litany of budget challenges the state faces in the near future, telling the chamber that because the state is a “poor state” “let  perfect wind energy and we can continue to build the parts.” She went on to call the approach “corporate welfare.”

“I just can’t vote for it knowing what the state faces next year.”                  

That bill was amended four times on the floor including a provision that takes a section dealing with rural electric companies back to current law; one that clarifies how the impact of wind programs on local roads and bridges can be evaluated; one that extends to five years the window for developing a clean coal or nuclear alternative energy source; and the last one, correcting a provision from SB223, which had been rolled into the bill.

The bill now goes to the Ohio House where a similar Strickland backed bill, HB 464 is undergoing hearings.

The Senate Energy and Public Utilities Committee accepted amendments Tuesday to Sen. Chris Widener’s (R-Springfield) legislation on alternative energy taxation, SB232, with a favorable vote on the legislation expected at Wednesday’s hearing.

The Controlling Board unanimously approved three pilot projects for construction reform on Monday, with one Republican member expressing hope that the projects will be extended to all state construction in the future.

The projects are the $1.75 million renovation of Emery Hall at Central State University; the $1 billion medical center campus project at Ohio State University; and the $7.8 million renovations of the Bowman Oddy Laboratories Building and Wolfe Hall at the University of Toledo. (See The Hannah Report, 3/25/10.)

Paolo DeMaria, the executive vice chancellor of the Board of Regents, told the Controlling Board that the guidelines under HB318 (Sykes) gave the chancellor flexibility in picking the projects and any of the five that were submitted for consideration could have been chosen.

The Ohio State hospital project was selected because it was the largest submitted and there are a variety of uses and approaches that could be studied through that process, he said. TheCentral State project was a small project and would test the use of assistance from the Department of Administrative Services (DAS).

He said the last project for the University of Toledo was selected because it was mid-sized and was the only one that had a strictly educational purpose. The University of Cincinnati andKent State University also submitted projects but not were selected.

Sen. John Carey (R-Wellston) asked if it would have been better to have five projects instead of three in the bill. DeMaria replied that the Regents support construction reform for all projects but will take the guidelines outlined in HB318 and use them to evaluate the three that were allowed.

When asked why he thought more were not submitted for consideration, DeMaria said that the projects will be under more scrutiny than what universities might be used to. He also said that many projects might have been not far enough along or too far along to fit into the pilot project.

Sen. David Goodman (R-New Albany) said he was disappointed that the reform was not across the board, and said he wants the pilot projects to lead to such reform. He asked how the projects will be studied for their effectiveness and efficiency. DeMaria said an outside consultant will be hired to gauge the process.

The Ohio Historic Preservation Office of the Ohio Historical Society announced that private investment of more than $2 billion has now been reached in Ohio projects using the federal historic rehabilitation investment tax credit. The credit encourages owners of historic properties to renovate buildings listed in the National Register of Historic Places.

Ohio has consistently placed in the top five states on the number of projects awarded the credit.

The Senate Energy and Public Utilities Committee  took additional testimony, March 24 on SB 232, introduced by Sen. Chris Widener, FAIA which would exempt from taxation renewable energy facilities that are not financed through the Ohio Air Quality Development Authority and require a payment in lieu of taxes on the basis of each megawatt of production capacity in such facilities.

The committee heard from numerous Ohio residents, advocates and Ohio school board associations weighing in on the fiduciary impacts of the legislation and quality of life issues.

First to testify was Economic Development Director Connie Neininger of White County, Indiana, who wanted to offer her perspective on the economic impacts of wind farm development and the financial incentives that were given in her state.

Like the rural areas in Ohio supporting the idea of large-scale wind farm development, White County is also a strong agricultural community with 323,000 acres of land, she said.

In the fall of 2006, she said they had three different wind development companies in the county interested in developing commercial wind farms. As the companies selected locations and constructed their meteorological towers, the economic development office worked with county officials on creating zoning ordinances and gathering data from across the country on wind development procedures. They also hired a legal firm and financial advisors to help analyze the impact of the projects.

Horizon Wind Energy’s Meadow Lake Phase I project – five phases total – consisted of 121/ 1.65 megawatt (MW) turbines for a total nameplate capacity of 200MW. The Phase I project covers approximately 26,000 acres and was constructed at a capital investment of $430 million. The construction began in February 2009 and was complete and brought online in October 2009. Currently, Neininger said, Phase II is now under construction and Phases III and IV are scheduled for later this month. The total project is 600MW and will consist of 350 turbines, which spans approximately 84,000 acres.

Indiana allowed tax abatement on personal and real property for a maximum of 10 years so long as the property is located in an Economic Revitalization Area, which county officials had to create by vote.

Neininger said the project has brought additional commerce to the community, and several hospitality businesses that would have closed remain open. She said the workforce was not all from Indiana because the industry is so specialized.

A coalition of Ohio’s educational advocates testified as interested parties and offered a few concerns to the members to consider as the substitute bill moves forward.

Barbara Shaner, representing the Ohio Association of School Business Officials (OASBO), testified on behalf of the representatives who were present at the hearing from the Buckeye Association of School Administrators (BASA), Ohio School Boards Association (OSBA), the Ohio Education Association (OEA), and the Ohio Federation of Teachers (OFT).

“We understand the desire to promote alternative energy production in Ohio and we want to participate in discussions about the issues and proposals in the bill,” Shaner said. “Because SB232 will have an impact on property tax revenues for local governments and schools, we want to make sure that the local tax dollars invested will result in a good return for Ohio and for the local communities affected.” Based on information from the Ohio Power Siting Board (OPSB) and the original version of the SB232, the organizations submitted an analysis from the Education Tax Policy Institute (ETPI) authored by Bill Driscoll and Dr. Howard Fleeter.

Shaner said that ETPI prepared information from state and national sources on appropriate tax levels for wind development. In addition, they prepared an analysis of the proposed investment in the wind energy projects that are likely to qualify for tax exemption related to the return on investment to local communities, and an analysis of job creation.

Shaner, according to ETPI analysis, also said that the Job and Economic Development Impact (JEDI) model would not be an accurate measure if the local property taxes are allowed to be significantly abated. She did say, however, that it is appropriate to use the JEDI model, but that it should not be placed in law as a true measure.

Chairman Widener disputed the information set out in the ETPI and discussed his concerns with Fleeter. He told Widener that he would adjust his analysis to fit the provisions of substitute SB232.

Also testifying were 11 Ohio residents of Logan, Champaign, Van Wert and Richland counties in opposition to the wind turbines, not only on financial impacts, but on the impacts to health, well-being and quality of life.  Testifying either in person or by submitting written testimony were Brett Heffner, resident of Van Wert; Tom Stacy and Steve and Mary Mortimer, from Logan County; Wayne Taylor, James Cole, Julie Johnson, Dianne McConnell and Anita Bartlett, from Champaign County; and John Warrington of Tiro.

Gene Poole, of VanWert, said that in his community, Iberdrola, a renewable energy company from Spain is planning to build a large wind farm. He said the problem is that no one has information about the company or its intentions for construction. However the company has offered residents to sign a “Good Neighbor Agreement” under which they would be given $2,000 up front and $1,000 every year thereafter. “Iberdrola denies any negative effects associated with wind turbines, yet they are willing to pay me for my silence should anything negative happen,” said Poole. Poole concluded by stating that Iberdrola is an encroachment, and that granting them a tax abatement under such circumstances would be irresponsible on the part of the Ohio Legislature.

“And any company that truly believes in the authority of its product should never suggest burdening the people’s health and economic welfare as necessary to its survival.”

The House Ways and Means Committee took testimony March 24 on HB464 which would exempt qualifying wind and solar energy facilities from property taxation for up to 20 years and to require payments in lieu of taxes on the basis of each megawatt if production capacity of such facilities.  The bill is similar to SB 232, introduced by Sen. Chris Widener, FAIA.

Committee members heard proponent testimony for the bill, which would exempt qualifying wind and solar energy facilities from property taxation for up to 20 years and would require payments in lieu of taxes on the basis of each megawatt of production capacity of such facilities.

Connie Neininger, economic development director for White County, Indiana, testified about the impact of a wind farm development in White County, an agricultural community that began researching wind energy when three different wind energy companies began courting their community. So far, the wind farm has been an asset to the community, she said.

Construction of the project brought many workers, which increased sales for local restuarants and hotels. The Indiana company that was the contractor for Phase 1 hired local residents for the job. Tourism season was extended to year-round, Neininger said, and schools are using the wind farms for education, starting tours of wind farms and hosting speakers. A local community college developed a sustainable energy curriculum to train the workforce. Neininger said the wind company is a good neighbor, causing minimal disruption of the farmland and preserving the land for farming for the future. The total project will measure 600 megawatts and consist of 350 turbines that span 84,000 acres.

Eric Thumma, director of institutional relations for Iberdrola Renewables, Inc., testified in support of the bill.

“Ohio’s existing tax regime puts wind development here at a significant disadvantage relative to other neighboring locations,” Thumma said. “HB464 mitigates that disadvantage while providing a known, stable, and significant stream of tax revenue to local communities – tax revenues that would possibly go completely unrealized if investments in proposed commercial scale wind projects are discouraged through the current uncompetitive tax regime.”

Written testimony was submitted by Clair Dudgeon, a Van Wert County commissioner who expressed support for the bill and said it would help the county compete with neighboring communities across the Indiana border.

Also providing written support of the bill was Robert Wannemacher, treasurer of the Wayne Trace Local School District in Haviland. Wannemacher suggested the tax rate of $6,000 per megawatt capacity should be raised to $10,000 or $12,000 per megawatt, which would place Ohio in the median of states with wind turbines.

Elaine Siler, a land owner in Van Wert County, also submitted written testimony in support of the bill as a way to keep Ohio competitive and make positive changes for the future.

Phil McClure, a retired farmer and property owner in Van Wert County who has signed a contract with a wind company to build wind mills on an 80 acre farm also wrote in support of the bill.