What Is 2019 Ohio House Bill 6

Overview

Ohio House Bill 6, signed into law in July 2019, fundamentally reshaped the state’s energy policy by introducing substantial financial support for nuclear power generation. The legislation was promoted as a measure to preserve jobs and maintain grid stability by preventing the closure of two aging nuclear reactors.

However, the bill quickly became controversial due to its funding mechanism and ties to political corruption. Below are key components of the bill that illustrate its scope and impact on Ohio’s energy landscape.

• House Bill 6 was passed by the Ohio General Assembly on July 23, 2019, and signed by Governor Mike DeWine days later, taking effect in November 2019.
• The bill allocates $1.3 billion in ratepayer-funded subsidies over six years to FirstEnergy Solutions for its Davis-Besse and Perry nuclear power plants.
• A central provision of the bill added a monthly charge of $1.50 per meter on all Ohio utility customers, collected through their electricity bills to fund the nuclear subsidies.
• It included a significant rollback of Ohio’s renewable portfolio standard, reducing the required renewable energy contribution from 12.5% by 2027 to just 8.5%.
• The legislation exempted FirstEnergy from competitive bidding requirements, guaranteeing payments regardless of market conditions or plant performance.

How It Works

The mechanics of House Bill 6 revolve around a complex system of ratepayer-funded subsidies and regulatory exemptions designed to keep nuclear plants operational. The following breakdown explains how the bill’s key provisions were implemented and enforced.

• Term: The nuclear subsidy program runs from 2019 to 2025, covering a total of six years. Each year, utility customers contribute through a line item on their bills to support FirstEnergy’s nuclear operations.
• Funding mechanism: The bill introduced a clean energy subsidy charge on all electricity bills, collecting approximately $150 million annually from Ohio ratepayers to fund the nuclear plants.
• Ratepayer impact: Every residential customer pays an average of $1.50 per month, while commercial and industrial users pay proportionally more based on usage.
• Regulatory exemption: The bill exempted FirstEnergy’s nuclear plants from competitive market bidding, ensuring guaranteed payments even if cheaper energy sources were available.
• Job preservation: Proponents claimed the bill would save over 4,000 direct and indirect jobs tied to the operation of the Davis-Besse and Perry reactors.
• Compliance timeline: The law required the Public Utilities Commission of Ohio (PUCO) to implement the subsidy program by January 2020, with audits conducted annually to track spending.

Comparison at a Glance

The following table compares key elements of Ohio House Bill 6 with prior energy policy and national standards to highlight its unique provisions.

The table reveals how Ohio’s policy diverged from both its own prior commitments and broader national trends. While many states incentivize clean energy, HB6 uniquely combined nuclear subsidies with weakened renewable targets and lax oversight, creating a framework later scrutinized for ethical and economic flaws.

Why It Matters

House Bill 6 had far-reaching consequences beyond energy policy, influencing public trust, regulatory integrity, and the future of clean energy in Ohio. Its passage and aftermath underscore the risks of opaque policymaking and corporate influence in state legislation.

• The bill was central to a federal corruption scandal in 2020, where FirstEnergy admitted to paying $60 million in bribes to secure HB6’s passage.
• It led to the indictment of Ohio House Speaker Larry Householder and five others on racketeering charges, highlighting systemic political corruption.
• Environmental groups criticized the rollback of renewable standards, arguing it set Ohio back a decade in clean energy progress.
• Consumer advocates raised concerns about unjustified rate increases benefiting a single corporation without competitive justification.
• In 2021, public pressure led to the repeal of the renewable energy rollback, though the nuclear subsidies remained intact due to contractual obligations.
• The controversy prompted calls for ethics reform and greater transparency in Ohio’s legislative process, influencing subsequent elections and policy debates.