Public Opinion Shifts When Energy Efficiency Mandates Are Made Transparent

Earlier this month, opponents of Senate Bill 310 released survey results that at face-value seem to indicate voters favored the current energy efficiency standards. However, this week Ohioans for Sustainable Jobs, a coalition of job creators, business organizations, and labor groups that includes the Ohio Chamber, released results of a public opinion poll that found the opposite when voters were given accurate, complete information about the context and cost of the efficiency programs that the first survey omitted.

SB 310 looks to take a timeout on energy mandates while the legislature reviews the costs and benefits of such programs. The need for this timeout came about because the current efficiency benchmarks that increase yearly do not reflect the current energy landscape in Ohio, which is very different compared to when these standards were enacted.

Six years ago, increasing electricity demands were projected that would require more generation capacity and this was part of the rationale used to mandate reduced levels of electricity consumption. However, given the more diverse energy portfolio in Ohio that now includes shale, coupled with a drop in demand for electricity due to the Great Recession, the reasoning behind the mandates doesn’t hold. When consumers understand that the efficiency standards are set to increase year by year but don’t reflect the current state of energy, 72% disagree that the government should mandate electricity reductions for businesses and consumers.

Furthermore, when the questionable relevance of this efficiency mandate is exposed, the associated costs do not add up for consumers. Ohioans have already paid $1 billion to comply with the current law and with the mandated benchmarks set to increase annually to a 22% reduction in electricity usage by 2025, the cost of complying will only climb. When consumers know this, the public opinion rapidly shifts from blithe support for the mandates to well-reasoned skepticism illustrated by the results that 56% of voters disagree with the energy mandates.

The bottom line is that like employers, consumers want to pay a fair price for essential expenses. Current energy mandates simply are not fair or sensible. The survey results show that Senate Bill 310 is a reasonable step to ensure that these mandates reflect Ohio’s energy realities and that businesses and consumers are not footing the bill for programs that warrant reform.