State and Local Policy Database

Ohio

State Scorecard Rank

29

Ohio

15.0Scored out of 50Updated 9/2016
State Government
Score: 4 out of 7
State Government Summary List All

Ohio offers several incentives for energy-efficient investments, including PACE financing. The state government leads by example by requiring the benchmarking of energy use in public buildings and encouraging the use of energy savings performance contracts. Research focused on efficient vehicles is conducted at the Center for Energy, Sustainability, and the Environment at Ohio State University.

Financial Incentives List All

Financial Incentive information for Ohio is provided by the Database of State Incentives for Renewables and Efficiency (DSIRE Ohio). In addition to the state-funded incentives on DSIRE, Ohio has enabled Property Assessed Clean Energy (PACE) financing and has several active programs. For additional information on PACE, visit PACENation.

Last Updated: July 2016

Building Energy Disclosure List All

There is no disclosure policy in place.

Last Updated: July 2016

Public Building Requirements List All

Executive Order 2007 - 02S (2007) directed each state agency, board, and commission to conduct a statewide energy audit of its respective facilities, both owned and leased, and to achieve an overall reduction of 5% in building energy use for its facilities within a year and 15% by the end of four fiscal years. The order required the use of EPA's Portfolio Manager as a benchmarking tool for state-owned facilities. 

H.B. 251, also enacted in 2007, requires an energy consumption analysis for state leases of buildings over 20,000 square feet. The bill also calls for institutions of higher education to reduce energy consumption by at least 20 percent by 2014 from a 2004 baseline.

Last Updated: July 2016

Fleets List All

Executive Order 2007-02S ordered each state agency to reduce their fuel consumption. Ohio law (Revised Code Section 123.011 (F)(1)) requires each state agency to develop average fuel economy standards. Each state agency submits data to calculate average fuel economy, per each state agency. There are 47 state agencies that have fleets with a variety of vehicles, and the average fuel economy was 17.4 mpg in fiscal year 2009.

By executive order there is a requirement for continuous improvement, which effectively sets a default target to do better than the previous year (>17.4). Fiscal year 2010 fleet plans are now being submitted and will be compared to the fuel economy baseline. The baseline and one subsequent year's data is necessary to establish a realistic target by rule.

Last Updated: July 2016

Energy Savings Performance Contracting List All

In Ohio, ESPCs are coordinated by the Ohio Facilities Construction Commission, formed by a recent merge between the Office of Energy Services and the Ohio School Facilities Commission. ESPCs have been in use since 1994 in public buildings and universities.

Last Updated: July 2016

Research & Development List All

The Center for Energy, Sustainability, and the Environment (CESE) at Ohio State University (OSU) is a research center for the College of Engineering to coalesce its research strengths, including clean energy, energy efficiency, and policy. CESE conducts research in efficient energy infrastructure systems (e.g. power grid, and transportation networks), as well as "systems of energy systems" (e.g. smart micro grids, and markets). CESE also serves to integrate and advance the research strengths represented through several affiliated centers and labs.  

Last Updated: July 2016

Buildings
Score: 3 out of 7
Buildings Summary List All

Residential and commercial buildings must comply with the 2009 IECC, however, Ohio is in the process of finalizing an update to its commercial energy code. The state has completed a gap analysis, offers training and outreach, and involves utilities in code compliance activities.

Residential Codes List All

Ohio's residential energy code is mandatory statewide and requires compliance with the 2009 IECC. Residential home builders are also allowed to meet the requirements of sections 1101-1103 of Chapter 11 of the Residential Code of Ohio (based on Chapter 11 of the 2009 IRC) or by meeting the state code's new Prescriptive Energy Requirements (section 1104).

Last Updated: July 2016

Commercial Code List All

Ohio's commercial energy code is mandatory statewide and references both the 2009 IECC and ASHRAE 90.1-2007. However, the state is in the process of adopting the 2012 IECC and ASHRAE 90.1-2010 for commercial construction.

Last Updated: September 2016

Compliance List All
  • Gap Analysis/Strategic Compliance Plan: Building Codes Assistance Project (BCAP) completed an Ohio Gap Analysis report in 2010. An update was published in 2014.
  • Baseline & Updated Compliance Studies: No statewide compliance study has been done, although AEP Ohio completed a compliance study for their service territory.
  • Utility Involvement: American Electric Power Ohio and Columbia Gas provide funding for training as part of the Ohio Energy Codes Ambassador Program. Utility support is voluntary: the Public Utilities Commission of Ohio does not require utility investment in code compliance efforts.
  • Stakeholder Advisory Group: NA
  • Training/Outreach: Ohio DSA has facilitated development of an Ohio Energy Codes Ambassador Program, which has trained eight code officials from various regions of the state on Ohio’s most recently adopted codes. These code ambassadors provide support, mentoring, and/or customized assistance to their peers in nearby jurisdictions. Funding for this program is provided by American Electric Power of Ohio and Columbia Gas of Ohio.

Last Updated: July 2015

CHP
Score: 1.5 out of 4
CHP Summary List All

Ohio has an interconnection standard that applies to CHP and offers an incentive program and financing assistance for CHP. One new CHP installation came online in Ohio in 2015.

Interconnection StandardsList All

Policy: Ohio Administrative Code 4901:1-22

Description: In 2007, Ohio adopted new interconnection standards applicable to distributed generation, including CHP. Ohio’s interconnection standards now separate interconnection into three tiers, to allow for easier and more streamlined applications for the smallest generators and a similarly streamlined application for larger generators that are still smaller than 2MW. A third tier provides a process for generators up to 20MW. A plain-language guide to interconnection accompanies the new tiered system. Ohio’s standards are also compatible with IEEE’s 1547 interconnection standard.

Last Updated: July 2016

Encouraging CHP as a ResourceList All

CHP in energy efficiency standards: Under the state's EEPS, Ohio’s investor-owned utilities were required to prepare and implement energy efficiency plans and CHP was an eligible technology. Though 2014 legislation placed a two-year freeze on energy efficiency requirements, several utilities indicate that they will continue to incorporate energy efficiency in their integrated resource planning processes.

Revenue streams: Two utilities, AEP Ohio and Dayton Power and Light (DP&L) both recently initiated custom programs for customers in their service territories to install CHP. In May 2015, DP&L launched a CHP incentive program that provides up to $500,000 for CHP projects with generating capacities less than 500 kW (not to exceed 50% of the project cost) The rebates include $0.08 per kWh generated and $100 per kW capacity.

Last Updated: August 2016

Deployment IncentivesList All

Incentives, grants, or financing: Ohio offers a 100% Energy Conversion and Thermal Efficiency Sales Tax Exemption to industrial and commercial property owners with energy conversion, solid waste energy conversion or thermal efficiency improvement facilities designed, constructed or installed after December 31, 1974.

Net metering: Applicable only to renewable-powered systems and microturbines, Ohio’s net metering rules have been updated several times since being enacted in 1999.

Last Updated: July 2016

Additional Supportive PoliciesList All

There are currently no additional statewide supportive policies to encourage CHP. Customers located within Dayton Power & Light (DP&L) service territory may have access to technical assistance, including funding of up to $10,000 to subsidize the cost of a CHP feasibility study.

Last Updated: July 2016

Utilities
Score: 6.5 out of 20
Utilities Summary List All

Ohio’s investor-owned utilities administer energy efficiency programs under a regulated structure with oversight by the Public Utilities Commission of Ohio (PUCO). In 2008, the state passed a law that established an EERS with energy savings goals for electric utilities and allows for cost recovery and decoupling. Rules for implementing the law were published by the PUCO in July 2009. The rules require utilities to propose energy efficiency plans and file annual status reports with the commission. However, these rules were pulled back by the state legislature in 2014. Despite this, most utilities in the state will likely still offer some level of efficiency programs.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Customer Energy Efficiency Programs List All

With passage of SB 221 in 2008, Ohio established the foundation for the full range of customer energy efficiency programs now available. This act called on utilities to develop electric efficiency programs to meet newly proposed energy and peak demand savings targets. This legislation also explicitly included demand-response programs and transmission and distribution system improvements. Though the statute was pulled back in 2014, many utilities indicate they will continue to offer similar levels of efficiency programming.

Ohio’s regulated distribution utilities administer their own energy efficiency programs with oversight from the PUCO. The PUCO may also modify the utilities' proposed programs. Ohio natural gas utilities also run efficiency programs.

Financing options also are available to customers. The Advanced Energy Fund, instituted in 1999, supports an Energy Efficiency Revolving Loan Fund that is administered by the state.  A universal service rider, a type of surcharge, supports the Ohio Energy Loan Fund, providing low income bill assistance and efficiency incentives. The charge is $0.0001758 per kWh and adds up to $15 million per year to the fund.

The most recent budgets for energy efficiency programs and electricity and natural gas savings can be found in the State Spending and Savings Tables.

Last Updated: September 2016

Energy Efficiency as a Resource List All

Under the state's EEPS, Ohio’s investor-owned utilities were required to prepare and implement energy efficiency plans. Though 2014 legislation placed a two-year freeze on energy efficiency requirements, several utilities indicate that they will continue to incorporate energy efficiency in their integrated resource planning processes.

For further reading, in March 2009, as part of the State Clean Energy Resource Project, ACEEE completed the report Shaping Ohio's Energy Future: Energy Efficiency Works (E092).

Last Updated: September 2016

Energy Efficiency Resource Standards List All

Summary: Beginning in 2009, incremental savings of 0.3% per year ramping up to 1% in 2014. A “freeze” in 2015–2016 allows utilities who have achieved 4.2% cumulative savings to reduce or eliminate program offerings. 

In 2014, Ohio froze its energy efficiency resource standard. Prior to that, the EERS had encouraged significant levels of savings within the state. Future targets remain uncertain.

Senate Bill 221, signed into law May 1, 2008, included both an Energy Efficiency Portfolio Standard (EEPS), and Alternative Energy Portfolio Standard (RPS), among other provisions.  For efficiency, the law required a gradual ramp up to a cumulative 22 percent reduction in electricity use by 2025. Beginning in 2009, the Act required investor owned utilities and retail suppliers to implement energy efficiency programs that achieve energy savings equal to at least three-tenths of one per cent of sales. The baseline for which energy savings were calculated against is the average number of total kilowatt hours sold by electric distribution utilities during the preceding three years.

Ohio’s EEPS also included peak demand reduction targets of 0.75% annually through 2018.

Last Updated: September 2016

Utility Business Model List All

With the exception of Duke, all of Ohio's electric utilities recover program costs and lost revenues resulting from its portfolio of energy efficiency programs through the DSM rider. Dayton Power & Light had their electric security plan approved by PUCO, which extends their existing generation rate plan through Dec. 31, 2012. Duke operates the Save-A-Watt program through which it recovers lost revenues. (Docket 08-920-EL-SSO)

In November 2011, both Duke Ohio and AEP Ohio agreed provisionally to forgo collection of lost revenues and develop a decoupling mechanism for total rate recovery for residential and small commercial customers. PUCO must approve and finalize the agreements. AEP: Docket 11-0351-EL-AIR; Duke: Docket 11-3549-EL-SSO.

In the Public Utilities Commission of Ohio’s (PUCO) rules, the commission may provide for decoupling and an electric distribution utility may submit an application for approval of a revenue decoupling mechanism to the PUCO.  Rather than true decoupling, the gas utilities have all been allowed to implement straight-fixed-variable rate designs. Rule: ORC §4928.143(B)(2)(h); Duke riders: Docket Nos. 06-0091-EL-UNC, 06-0092-EL-UNC, and 06-0093-GA-UNC.

Incentives may be approved on a case-by-case basis. First Energy and AEP have had performance incentives approved. The recovery mechanism is an annually reconciled rider which includes conditioned adjustments for shared savings with a maximum 10% shareholder incentive if at least 65% of targeted savings are achieved. Duke Energy has a program called Save-A-Watt which limits the incentive to 15% of program costs (Docket 08-920-EL-SSO). Columbia Gas also filed for a shared savings mechanism in September 2011, which was subsequently approved in December 2011(Docket 11-5028-GA-UNC). 

Beginning in January 2015, Ohio Senate Bill 310 gives certain customers the ability to opt-out of energy efficiency programs entirely. Large customers may opt out of a utility’s energy efficiency provisions if they meet one of the following criteria:

  1. Receive service above the primary voltage level (e.g., GSU and GT Rate Schedules)
  2. Commercial or Industrial customer with more than 45,000,000 kWh usage through a meter or through more than one meter at a single location for the preceding calendar year with a written request for registration as a self-assessing purchaser pursuant to section 5727.81 of the Revised Code

 

Last Updated: September 2016

Evaluation, Measurement, & Verification List All

The evaluation of ratepayer-funded energy efficiency programs in Ohio relies on regulatory orders (Green Rules as adopted by the Commission in Case No. 08-888-EL-ORD).Evaluations are administered by both the utilities and the Public Utilities Commission of Ohio. Rules and requirements for these evaluations are drafted in the Draft Technical Reference Manualand the Draft Technical Reference Manual Docket: Case No. 09-512-GE-UNC. Evaluations are conducted statewide and for each of the utilities. Ohio uses two of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC) and Utility/Program Administrator (UCT) test. Ohio specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for portfolio and customer project level screening, and are stated in Case No. 09-512-GE-UNC.

Last Updated: September 2016

Guidelines for Low-Income Energy Efficiency Programs List All

Requirements for State and Utility Support of Low-Income Energy Efficiency Programs

Ohio’s Restructuring Act, passed in July 1999, created the Universal Service Fund to control the cost of state’s Percentage of Income Payment Plan (PIPP) for low-income customers. Sec. 4928.55 of the legislation also directed the creation of the Electric Partnership Program (EPP) to target high-cost, high-volume PIPP or PIPP-eligible households. The EPP is designed to improve the electric efficiency of low-income households who participate in or are eligible for PIPP Plus. The program performs in-home audits and installs appropriate electric energy efficiency measures. About $15 million is set aside for the EPP each year. In addition to the EPP, most of Ohio’s gas utilities have weatherization programs, typically coordinated with the federal Weatherization Assistance Program.

Cost-Effectiveness Rules for Low-Income Energy Efficiency Programs

Ohio uses the total resource cost (TRC) test and the utility cost test (UCT). Ohio specifies the TRC as its primary test for decision making. The benefit-cost tests are required for portfolio and customer project-level screening, and are stated in Case No. 09-512-GE-UNC.

Coordination of Ratepayer-Funded Low-Income Programs with WAP Services

The Ohio Development Services Agency (ODSA), Community Services Division, Office of Community Assistance (OCA) is responsible for administering LIHEAP, the Community Services Block Grant, the PIPP Plus Program, the State Energy Plan, and the EPP. In doing so, the HWAP network integrates federal weatherization funds with utility resources through a single coordinated funding model, managing programs for all seven major utilities. 

Last updated: April 2017

Self Direct and Opt-Out Programs List All

Self-direct options are available for large customers in Ohio. Under SB 221, a mercantile customer, which is a commercial or industrial customer that consumes more than 700,000 kWh per year, may enter into a special arrangement with an electric utility to integrate the customer’s demand reduction, demand response, or energy efficiency programs with those of the electric utility. If the specified reduction levels are met, the customer can request exemption from the cost recovery mechanism.  

One of the state’s utilities, AEP, has a self-direct program that offers customers an incentive for previously implemented energy efficiency measures. The one-time incentive is 75% of what the measure would cost under AEP programs and has a maximum limit of $225,000.  Projects must have been implemented after Jan. 1, 2008 and must produce 100% of stated energy savings and/or peak demand reductions over a five-year period.  Customers taking the incentive are still eligible to participate in the utility's other energy efficiency programs because they are still paying the cost-recovery mechanism (CRM) fee. 

Last Updated: September 2016

Data AccessList All

Ohio has no policy in place that requires utilities to release energy use data to customers or third parties. 

Last Updated: September 2016 

Transportation
Score: 0 out of 10
Transportation Summary List All

The state has not focused its efforts on policies to encourage efficient transportation systems, leaving significant room for improvement.

Tailpipe Emission Standards List All

No policy in place or proposed.

Last Updated: July 2015

Transportation System Efficiency List All

Transportation and Land use Integration: No policy in place or proposed.

VMT Targets: No policy in place or proposed.

Complete Streets: No policy in place or proposed.

MAP 21 Freight Plans and Goals: The state has a freight plan in place but it does not highlight concrete freight system efficiency strategies or include efficiency performance measures. 

Last Updated: June 2016

Transit Funding List All

No policy in place or proposed.

Last Updated: July 2015

Incentives for High-Efficiency Vehicles List All

No policy in place or proposed.

Last Updated: July 2015

Appliance Standards
Score: 0 out of 2
Appliance Standards Summary List All

Ohio has not set appliance standards beyond those required by the federal government.

Last Updated: July 2016