Charlie Schilling, Washington County Commissioner — Ohio House of Representatives (04/22/2024)

Summary

Letter dated April 22, 2024, from Charlie Schilling, Washington County Commissioner, giving in-person proponent testimony on HB 349 to the Economic and Workforce Development Committee. Schilling states that the Southeastern Ohio Port Authority owns the Muskingum River Industrial Park and that, in early 2021, the port entered conversations with a developer proposing a $100MM methanol production facility. According to the letter, the 10-month development process ended with the project located in Texas, and a primary factor was the cost of extending the gas line 5,000 feet to the site. The letter states that many provisions in HB 349 would enhance chances to secure a similar project.

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Full text

                                                                        04/22/2024
Charlie Schilling, Washington County Commissioner
223 Putnam Street
Marietta, OH 45750

Ohio House of Representatives
77 S. High Street
Columbus, OH 43215

RE: In Person Proponent Testimony on HB 349

Chairman Swearingen, Vice Chair Santucci and Ranking Member Upchurch along
with other members of the Economic and Workforce Development Committee,

As a Washington County resident my entire life I’ve seen and experienced the ups
and downs of Economic Development. I have owned a real estate holdings
company for the last 27 years. During that time I have developed residential real
estate, including new homes and apartment complexes throughout our region. I
have served as a Washington County Commissioner for 3 ½ years and before that
was a member of the Fort Frye Local School Board for 8 years.

In my time as a Commissioner working with our Southeastern Ohio Port Authority
I have witnessed where there’s a lack of natural gas supply can prohibit
development in many ways. The SeOPA is the owner of the Muskingum River
Industrial Park (MRIP) – formerly the AEP Ohio Muskingum River generation
facility – which sits less than a mile from 3 large interstate natural gas pipelines.
This site encompasses 165 acres.

Shortly after acquiring the MRIP early in 2021 the port entered into conversations
with a developer that was proposing a $100MM methanol production facility.
The 10-month development process ended with the project being located in
Texas as opposed to Ohio. A primary factor in this decision: The cost of
extending the gas line 5,000 feet to our site. The quoted transportation rates
from the companies that reviewed the project, increased the cost of gas beyond
the breakeven mark for the company. Many provisions in HB 349 would enhance
our chances to secure a project like this in the future. As a result of that near
miss, the SeOPA has begun negotiating an easement with the adjacent landowner
in an effort to enhance the preparedness for the next project requiring feedstock
quantities of natural gas.

Recently, the Commissioners approved a proposal from our port approving the
negotiation of a potential purchase of another brownfield site (former
AMP/Gorsuch Generation Facility) here in Washington County as well. Having site
acquisition in this area is key, considering it is on the Ohio River and borders State
Route 7 between Marietta and Belpre which is our industrial corridor. The other
key factor is, this site is connected to the Muskingum River Industrial Park via
railroad. So the positive alignment of road/river/rail within our development sites
makes Washington County that much more attractive. In reality, we are doing
our part working with our Port Authority to make Development easier here in this
entire SE region of Ohio. HB 349 has the ability to play a pivotal role moving
forward.

In Washington County, we have many large industries and chemical companies
along the Ohio River. These firms employ many of our residents. I’ve heard
numerous times, in order to grow in our community these companies need access
to more natural gas, without it they will be forced to grow elsewhere. HB 349 can
help alleviate some of these concerns!

The brownfield sites we’re discussing here today also has the ability to positively
impact our school districts and our youth in general. As these plants were closing
over the past 10-15 years the negative impact was well documented. Now is our
time to remedy this for generations to come.

In closing, I’ll say Washington County is seeking a “difference maker” when
speaking of Economic Development. For Washington County to have a choice to
designate as an Energize Ohio zone, we will be able to support our industry
partners along the Ohio and Muskingum Rivers that’s been so vital to us over the
years. This is why I support HB 349 and hope the members of the Economic and
Workforce Development Committee do their part to convert this bill into law.

Respectfully Yours,


Charlie Schilling, Washington County Commissioner


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