This week, Ohio Senate Bill 294 passed the Ohio Senate. This legislation provides guidance to the state’s Power Siting Board on the intent of the General Assembly that the energy powering the Buckeye State should be “affordable, reliable and clean,” and the energy produced and the manner in which it is produced shall rely on domestically sourced materials and “minimize reliance” on “foreign adversary nations for critical materials or manufacturing.”

Energy is the “lifeblood of our economic system,” as the Nobel Prize-winning economist Milton Friedman noted. It is the master resource. Affordable, reliable, and plentiful energy is the foundation of economic growth and prosperity. Energy is at the core of nearly everything we do, everything we use, everything we manufacture, everything we purchase, sell, eat; it’s how we heat and cool our homes, it is a part of how we educate, how we stay connected with our community, and how we care for our young, elderly, and sick. Therefore, energy prices are a significant factor in our lives and a major contributor to or detractor from our overall personal, state-level, and national prosperity. 

Affordable and reliable energy, economic growth, and protecting the environment from degradation need not be at odds with one another. The energy sources that are most abundant and affordable are surprisingly environmentally friendly when we look at the full-spectrum environmental impacts of the various energy sources. Often, the best way to be pro-environment is to be pro-energy.

To fully unleash economic opportunity in the Buckeye State, policymakers in Ohio must be deliberate in enacting policies that prioritize abundant, reliable energy. It is a tremendous step in the right direction that members of the Ohio Senate did just that this week.

According to the bill, an “affordable” energy source is one that has “a stable and predictable cost” and provides a “cost-effective means of heating, cooling, and generating electricity.” Further, “affordable” sources must deliver “substantial savings relayed to residential and commercial customers comparable to  energy sources listed in 42 U.S.C. 15852(b),based on the average cost per unit of energy output calculated to include any direct or indirect payment by any level of government for the previous five years.” Those energy sources in the U.S. code being solar, wind, biomass, landfill gas, geothermal, municipal solid waste, or hydroelectric.

To be considered a “reliable” energy source, the bill demands the resource be “readily available at all times to meet energy demands with minimal interruptions during high-usage periods” and that, when used for power generation, the resource must have a “minimum capacity factor of fifty per cent,” that it’s electricity output is “dispatchable at all times and with the capability to ramp up or down electricity generation within one hour to stabilize the electrical grid,” and have the ability to “complement and provide backup to renewable energy resources during periods of low availability.”

“Dispatchable” power sources are those that can adjust to the electric grid on demand, such as a natural gas turbine, a coal plant, a hydroelectric dam, or a nuclear plant. Non-dispatchable power sources, such as solar and wind, cannot be turned on or off to meet demand and are highly intermittent. They are not continuously available 24 hours a day because of factors that cannot be controlled—such as cloud cover, daylight, wind speed, air density, and other variables—and are therefore unreliable.

The bill considers a “clean” source to be any energy generated by natural or gas or nuclear or  “any energy generated by utilizing those sources listed in 42 U.S.C. 15852(b) or hydrocarbons, which, when combusted for the purpose of electricity generation, meet the national ambient air quality standards set by the United States environmental protection agency under the authority of the Clean Air Act,” 42 U.S.C. 7401.

SB 294 establishes a clear state policy prioritizing affordable, reliable, and clean energy – not as mutually exclusive goals, but as interdependent pillars of sound energy governance. By aligning state policy accordingly, the bill provides regulatory clarity and market certainty for investors, utilities, and consumers alike.

By encouraging affordable, reliable, and clean energy sources, Ohio not only protects its consumers and industries from unreliable or costly alternatives but also sets a policy model for other states. SB 294 charts a pragmatic energy path that promotes both innovation and dependability without sacrificing affordability or security.

A balanced energy framework guarantees dependable power for homes, hospitals, and manufacturers. Energy independence for Ohio also means economic resilience. Prioritizing American-produced fuel, particularly natural gas, which is in abundant supply in the Buckeye State, reduces exposure to hostile or unstable foreign suppliers, secures jobs, and keeps energy dollars in Ohio.

The “business of energy” in America has long been shrouded in double-speak, subsidies, and buried costs. SB 294 seeks to shed light and bring transparency to the true nature of energy.

By establishing and clearly stating a standard such as affordable, reliable, and clean, the Ohio Senate has chosen to create transparency that does not prohibit any form of energy; it merely allows choice based on facts rather than hope and false promises. 

With this legislation, members of the Ohio Senate have chosen to steward energy security for the present state of Ohio and secure economic prosperity for the future of the Buckeye State. As SB 294 moves through the legislative process and makes its way to the Ohio House of Representatives, unequivocal support is encouraged. The “affordable, reliable, and clean” policy set forward in this legislation aligns environmental stewardship with economic strength, ensuring Ohio leads the nation in sustainable growth and reliability.

Heartland Impact can send an expert to your state to testify or brief your caucus; host an event in your state; or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact Cameron Sholty at csholty@heartlandimpact.org or 312/377- 4000.