Ohio proposes new $20 million natural gas law

COLUMBUS, Ohio (WCMH) -- Republican lawmakers want to ensure that Ohio has the option to tap into the state's natural gas resources.  

House Bill 349, sponsored by Reps. Don Jones (R-Freeport) and Tim Barhorst (R- Fort Loramie), would create an interest loan fund to the tune of $20 million.

“To incentivize [natural gas companies] to get infrastructure pipelines in the ground,” Jones said. “There’s just not enough volume to our existing lines that we have.”

Jones said they are eyeing the next budget cycle for that appropriation but are working with the Department of Development in the meantime.

The loan would help natural gas companies that are looking to get the rights to natural gas pipeline easements on property located within a designated “EnergizeOhio” zone.

Jones said opting into the program would be up to local governments.

“If the pros outweigh the cons for that area, you’ll see local entities take advantage of it,” Jones said. “It is not a mandate, just an opportunity.”

He said the bill is important to ensure economic development and a good quality of life can continue, especially in rural areas. And Jones said without expanding our energy production, Ohio faces possible brownouts and blackouts down the line.

“We know electricity demands are getting greater. We’ve got Intel coming in, that’s going to take a lot of energy out of the grid,” Jones said. “Twelve years ago, we were generating more power than we were using, we were selling it to other states. Today, we are buying it from other states.”

“There are a lot of ways to ensure we have reliable power. One way is simply ensuring we have a more efficient energy grid,” managing director of energy policy for the Ohio Environmental Council Actin Fund Nolan Rutschilling said. “There are a lot of things we can do before we start building new pipelines or subsidizing new pipelines.”

Jones said between southeast Ohio, northern West Virginia, and western Pennsylvania, we are sitting on the third-largest reserve of natural gas in the world.

The bill would also reduce property taxes for natural gas companies.

“We think, frankly, that’s insulting to the Ohioans who are seeing rising property taxes of their own,” Rutschilling said. “These companies have the ability already to build these pipelines to build these gasolines. They don’t need more bailouts; they don’t need more reductions in taxes while regular people are trudging to get by.”

“It does give a tax break to these companies because building pipeline is not cheap and we’ve not expanded our infrastructure,” Jones said.

Rutschilling points out other legislation that has recently passed the statehouse to allow gas companies to add extra fees onto bills. Rutschilling said he thinks there are ways to expand the state’s energy infrastructure without going down this bill's path.

“We think the way to move forward is through clean energy, reliable grid and not more fossil fuel bailouts,” he said. “For solar, for wind, for battery storage, its increasingly more and more cost-effective than even natural gas.”

To use natural gas, a technique called “fracking,” is used. The state recently enacted a bill to allow fracking in state parks. But, if this new bill is enacted, could you see fracking where you live?

“Will [Ohioans] see a pipeline going through their property? Absolutely. Once the pipeline is in the ground and the infrastructure is established, there will be very little disruption,” Jones said. “Anything is bad if you want to find a fault with it. And fracking is something that has come a long way in how they do the process.”

Jones said a one-time infrastructure project could, in some ways, be better than hauling equipment throughout the state highways and roads. But Rutschilling said he is still concerned about the potential impacts expanded natural gas could have. He said while economic development is important, there are ways to do it without also threatening more pollution.

“There’s potential for gas leaks and emissions to be released into the environment,” Rutschilling said.

“There’s always the ‘what ifs’ and that does exist, and we have to acknowledge that, but we also have to acknowledge that we have thousands, probably millions of pipelines in the ground right now and our problems have been very, very minimal,” Jones said.

The bill has its second hearing on Tuesday.

Jones said House Republican leadership has not “expressed any angst” with the legislation, but said it is likely not on the top of the priority list to pass before the end of this year.