Sponsor Testimony on HB 349 (ENERGIZE Ohio) — House Economic & Workforce Development Committee

Summary

Sponsor testimony before the House Economic & Workforce Development Committee, addressed to Chairman Swearingen, Vice-Chair Santucci and Ranking Member Upchurch, on ENERGIZE Ohio. It states that HB 349 seeks to bring increased access to natural gas to areas of the state without the necessary infrastructure. The testimony describes an incentive program with a revolving loan program funded at $20M, administered by the Department of Development, and a tax easement program with an overall reduction of 75%. It states that the Department of Development is required to publish a map of areas receiving the loan dollars.

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Full text

Chairman Swearingen, Vice-Chair Santucci, Ranking Member Upchurch and members of the
House Economic & Workforce Development Committee, I would like to thank you for the
opportunity to provide sponsor testimony on House Bill 349 or ENERGIZE Ohio.
HB 349 seeks to use a tried-and-true economic development strategy to bring increased access to
natural gas to areas of the state that do not have the necessary infrastructure to provide natural
gas at a level suitable to attract investments from businesses. Since natural gas helps generate
enough electricity to power many different types of businesses, a lack of it can end projects and
discourage investment in these areas. Once an area receives the EnergizeOhio designation, this
designation lasts for 5 years, and can be renewed for an additional 5 years if the Department of
Development determines additional infrastructure is still needed. This will bring jobs to parts of
the state, including the Appalachian region, which are in desperate need of them.
This is accomplished through a two-fold incentive program. The first is a revolving loan
program, funded at $20M, in which the Department of Development administers loans to
counties, municipalities and townships, as well as port authorities, economic development boards
and other economic development engines provided they operate in at least 5 counties. The
second is a tax easement program that will tax the personal property of Natural Gas companies at
the true property value (purchase price) with an accelerated depreciation table and an overall
reduction of 75%.
The counterargument to these programs is often a loss in revenue to local governments. HB 349
structures the loan program so that local governments themselves must apply for the funds. This
ensures the loans and tax easements go to areas who have determined, on the local level, that the
pros outweigh the cons.
To ensure transparency in this process, the Department of Development is required to publish a
map of areas receiving the loan dollars, as well as notify the Tax commissioner of any areas who
receive the EnergizeOhio designation.
The United States is currently the number 1 purchaser of Natural Gas. The two largest natural
gas companies are owned by Russia and China respectively. In additional to providing necessary
infrastructure to aide parts of the State without it in competing for investment dollars, HB 349
creates necessary infrastructure to keep Ohio natural gas in Ohio, and not be reliant on natural
gas purchased from Russia and China.
I would like to thank you for allowing me to testify today and will answer any questions.


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