Why Ohio Legislators Should Vote for the Carbon Reversal Credits Act
The Carbon Reversal Credits Act (CRCA) empowers the Ohio Nuclear Development Authority (ONDA) to catalyze a market-based mechanism for supporting next-generation nuclear and waste-to-energy innovation. It introduces a new class of renewable energy credit—Carbon Reversal Credits (CRCs)—that incentivize Electric Distribution Utilities (EDUs) and Competitive Retail Electric Service (CRES) providers to invest in the Ohio Nuclear Development Consortium (ONDC), a for-profit, public-benefit entity chartered to produce carbon-negative electricity and ultra-clean fuels.
Key Benefits for Ohio and Its Citizens
Lower Long-Term Electricity Costs: CRCs are earned through capital investment, not government subsidies, aligning with market principles while accelerating deployment of advanced reactors and plasma gasification that drive down electricity costs.
Energy Grid Reliability: The bill establishes the Energy Reliability Council of Ohio, comprising top investor stakeholders, to provide direct advice to ONDA on enhancing grid performance and mitigating price volatility.
Ratepayer Protection through Private Capital: The program leverages private-sector investment, not taxes, to fund state energy innovation, making it budget-neutral for Ohio taxpayers.
Regulatory Simplicity: CRCs are integrated into Ohio’s existing Renewable Portfolio Standards (RPS) under Section 4928.645, giving EDUs and CRES providers a seamless method to comply with renewable mandates.
Operational Support Without Taxpayer Burden: The ONDC may contribute up to 0.5% of its equity valuation to support ONDA operations, retaining up to 2% for its own expenses, thereby maintaining lean and efficient government involvement.
Fair Play for Baseload Energy: Wind and solar have long benefited from Renewable Energy Credits and legislative mandates. This bill corrects that imbalance by granting the same opportunities to carbon-negative nuclear innovation, finally allowing real competition in the green energy space.
Strategic Goals Realized Through This Bill
Mobilize Capital into Ohio-Based Technology: With each $50 membership share purchased by utilities and energy retailers, ONDA issues CRCs, spurring investment into Ohio-made clean energy technologies.
Support Baseload Innovation: Ensures new nuclear and waste-to-fuel technologies are treated with parity under Ohio’s renewable energy law.
Empower Local and Regional Stakeholders: By inviting market participants to buy into ONDA, the bill democratizes energy policy influence while tethering investment to performance outcomes.
Enable Long-Term Statewide Planning: The ONDA’s new powers enable continuous public-private planning to modernize Ohio’s energy future.
Conclusion
The Carbon Reversal Credits Act is a forward-looking, fiscally responsible measure that uses market dynamics to advance Ohio’s energy independence, while providing a regulatory framework that prioritizes ratepayer relief, innovation, and private investment. It ensures Ohio’s energy strategy is not dependent on federal subsidies or foreign-controlled renewables, and positions Ohio as a national leader in clean, resilient, carbon-negative energy development.
