To amend sections 1509.02, 1509.34, 5703.052, 5749.01, 5749.02, 5749.04, 5749.06, 5749.07, 5749.08, 5749.10, 5749.12, 5749.13, 5749.14, and 5749.15; to enact sections 4928.57 and 4928.571; and to repeal section 1509.50 of the Revised Code to modify the rate and revenue allocation of the severance tax on oil and natural gas, to create an electric bill credit, and to make an appropriation.
HB819 would substantially revise Ohio’s severance tax structure for oil and natural gas and use part of the resulting revenue to provide direct electricity bill credits to residential customers. The bill raises the oil and natural gas severance tax from fixed per-unit rates to a 7% tax tied to quarterly spot prices, while leaving other natural resource severance taxes largely unchanged. It also repeals the existing section 1509.50 assessment, updates related enforcement and refund provisions, and preserves the state’s oil-and-gas regulatory framework by continuing to route certain fees, penalties, and lien collections into the oil and gas well fund.
The bill creates a new Ohio Energy Credit Fund and requires electric distribution utilities to apply bill credits to all residential customer bills statewide. The first credit would be $150 per residential customer once the fund has enough money to cover the total cost, and later credits would be set annually by the Public Utilities Commission based on available fund balances. HB819 also appropriates $150 million from the Oil and Gas Well Fund to seed the new credit fund and directs the Department of Budget and Management and the PUC to administer the transfers and credits.
HB819 would amend multiple sections of the Revised Code governing severance taxation, tax administration, oil and gas enforcement, and refund procedures. It would replace the current oil and natural gas severance tax rates with a percentage-of-price formula, redirect most oil-and-gas severance tax revenue into the new Ohio Energy Credit Fund, and adjust the remaining allocations to the oil and gas well fund and geological mapping fund. The bill also creates new statutory authority for statewide residential electric bill credits and makes conforming changes to liens, assessments, penalties, and refund rules tied to the repeal of section 1509.50.
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the measure appears to be framed as a consumer-relief and revenue-reallocation proposal rather than a narrowly technical tax bill. Its stated purpose of reducing Ohioans’ electric bills suggests a favorable policy intent for residential customers, while the increased severance tax burden on oil and gas producers indicates a redistributive approach. Because there are no transcripts or vote records here, no formal committee sentiment can be measured beyond the bill’s pro-consumer framing and its likely appeal to supporters of using energy-sector revenues for household relief.
The main point of contention is likely the shift in tax burden from oil and gas producers to residential electricity customers as beneficiaries of the new credit fund. Supporters would likely emphasize lower electric bills, environmental and resource-management funding, and a stronger revenue stream tied to market prices; opponents would likely object to the higher severance tax rate, the redirection of oil-and-gas revenues, and the potential impact on drilling investment and production. Another likely issue is the bill’s use of an immediate $150 million transfer from the existing Oil and Gas Well Fund, which could draw scrutiny from stakeholders concerned about the adequacy of funds for well plugging, remediation, and regulatory enforcement.