Ohio Senate Bill SB2

Ohio 2025-2026 Regular Session

• Introduced: 1/22/25
• Report Pass: 3/18/25
• Engrossed: 3/19/25

Caption

To amend sections 303.213, 519.213, 713.081, 3313.372, 3313.373, 4905.03, 4906.01, 4906.03, 4906.06, 4906.07, 4906.10, 4909.04, 4909.05, 4909.052, 4909.06, 4909.07, 4909.08, 4909.15, 4909.156, 4909.173, 4909.174, 4909.18, 4909.19, 4909.191, 4909.42, 4928.01, 4928.05, 4928.08, 4928.14, 4928.141, 4928.142, 4928.144, 4928.17, 4928.20, 4928.23, 4928.231, 4928.232, 4928.34, 4928.542, 4928.64, 4928.645, 4929.20, 4933.81, 5711.01, 5727.01, 5727.031, 5727.06, 5727.11, 5727.111, and 5727.75; to enact sections 122.161, 3313.377, 3313.378, 4903.27, 4905.23, 4905.311, 4905.321, 4905.331, 4909.041, 4909.042, 4909.181, 4909.192, 4909.193, 4928.041, 4928.101, 4928.102, 4928.103, 4928.105, 4928.107, 4928.149, 4928.1410, 4928.73, 4929.221, 4929.222, and 5727.76; and to repeal sections 3706.40, 3706.41, 3706.43, 3706.431, 3706.45, 3706.46, 3706.49, 3706.491, 3706.55, 3706.551, 3706.59, 3706.63, 3706.65, 4928.143, 4928.148, and 4928.642 of the Revised Code regarding public utilities law, to make changes regarding utility tangible personal property taxation, and to repeal parts of H.B. 6 of the 133rd General Assembly.

Summary

SB 2 is a broad Ohio public-utilities bill that revises multiple parts of the Revised Code governing electric and natural gas regulation, utility rate cases, renewable energy compliance, and property taxation. A major theme of the bill is restructuring how the state treats utility-related tangible personal property for tax purposes, including creating a new exemption for qualifying property placed into service in designated priority investment areas and changing the tax treatment of certain energy-related equipment beginning in future tax years. The bill also creates a priority investment area program for brownfields and former coal mine sites, allowing local governments to request designation from the Department of Development and tying that designation to a five-year tax exemption for qualifying property. The bill makes substantial changes to utility regulation and rate-making. It revises Public Utilities Commission procedures for valuation, rate cases, discovery, notice, and timing, including shorter deadlines in some proceedings and new automatic-approval provisions if the commission misses statutory deadlines. It also changes rules for electric distribution utilities, competitive retail electric service, supplier certification, customer notices for variable-rate contracts, supplier switching procedures, demand response programs, and governmental aggregation. In addition, it creates a school energy performance contracting loan fund and related loan authority to finance school energy-efficiency projects, funded by transfers from the former solar generation fund. SB 2 also repeals several provisions associated with H.B. 6 of the 133rd General Assembly, including sections tied to legacy generation resource recovery and the solar generation fund. The bill ends collection of certain charges previously authorized for legacy generation resources and solar generation fund disbursements, while directing the state to transfer remaining solar fund balances into the new school loan fund. It further repeals or revises multiple sections related to renewable energy credits and utility cost-recovery mechanisms, while preserving and updating other renewable-energy and energy-efficiency provisions. The overall sentiment reflected in the voting history is strongly favorable and bipartisan in the Senate. The bill passed the Senate committee unanimously and then passed the full Senate 32-0, indicating broad support for the package as a whole. No committee transcript was provided, so there is no recorded floor or committee debate in the supplied materials to show detailed arguments for or against the measure. The main points of contention suggested by the text are policy rather than procedural. The bill touches several sensitive areas: utility rate recovery, the scope of PUCO authority, renewable-energy compliance, local control over siting and zoning, and the repeal of H.B. 6-related provisions. Potentially affected parties include electric distribution utilities, natural gas companies, competitive retail suppliers, school districts, counties and townships, developers of solar/wind/gas infrastructure, and customers who may see changes in rates, notices, or tax treatment. The priority investment area and tax-exemption provisions also suggest a focus on economic development in coal-impacted or distressed areas, which may draw differing views from local governments, utilities, and taxpayers.

Impact

SB 2 would significantly alter Ohio’s public-utility and utility-tax framework by amending numerous chapters governing electric, gas, and related utility regulation. It creates a new tax exemption for qualifying utility transmission and gas property placed in designated priority investment areas, changes valuation and assessment rules for utility tangible personal property, and updates the tax treatment of energy-related equipment and projects. It also establishes a new school energy performance contracting loan fund and shifts money from the former solar generation fund into that program, while repealing several H.B. 6-era provisions and ending certain legacy generation and solar-related charges.

Sentiment

The available voting history shows strong, unified support in the Senate: the bill advanced out of committee 11-0 and passed the Senate 32-0. That suggests the measure was broadly viewed as a comprehensive cleanup and restructuring bill, especially with respect to utility regulation, tax treatment, and repeal of controversial H.B. 6 provisions. No committee transcript was provided, so the record here does not show detailed public debate or organized opposition in the supplied materials.

Contention

The bill’s most likely areas of contention are the repeal of H.B. 6-related cost recovery, the new tax exemptions for utility property in priority investment areas, and the bill’s changes to PUCO procedures and utility rate-setting timelines. Utilities may be concerned about limits on recovery mechanisms and tighter deadlines, while consumer advocates may focus on whether the bill adequately protects customers from rate impacts and variable-rate supplier practices. Local governments and developers may support the brownfield/former coal mine incentives, but taxpayers and competing jurisdictions could question the scope of exemptions and the use of state-administered designations. The bill also affects renewable-energy compliance and competitive retail market rules, which can draw differing views from utilities, suppliers, and clean-energy stakeholders.