The Ohio Senate passed House Bill 15 (Klopfenstein) unanimously on April 30, 2025, and the Ohio House later the same day concurred by a vote of 94 to 2. The legislation heads to Governor Mike DeWine for his approval.
H.B. 15, along with its companion bill, Senate Bill 2 (Reineke), proposed wholesale changes to Ohio’s approach to energy. We’ve covered the various iterations of the bill previously. Now, Ohio turns the page towards the next chapter of energy innovation.
Below is a summary of some of the bill’s key provisions:
- Tax reform beginning in tax year 2027:
- Decreases the Tangible Personal Property (TPP) tax on new generation and energy conversion equipment to 7% from 25%.
- Drops the TPP on new transmission, distribution, and pipeline infrastructure to 25%.
- Existing Payment in Lieu of Taxes (PILOT) agreements continue.
- Energy storage will be treated as generation for purposes of the TPP.
- Priority Investment Areas (PIA)
- Local communities can apply to the Department of Development to designate areas as a PIA. Brownfields and former mine sites are eligible for PIA designation.
- PIA eligible projects can be awarded up to $10 million from the Brownfield Remediation Program.
- PIA projects receive expedited review by the OPSB and a TPP tax exemption on transmission, distribution, and pipeline infrastructure for five years.
- Permits customer refunds for rates later determined to be illegal. Refunds are issued from the date the Ohio Supreme Court holds that a rate was illegal.
- Repeals the OVEC rider immediately upon the bill becoming effective.
- Repeals Electric Security Plans and requires Electric Distribution Utilities (EDUs) to file rate cases every 3 years.
- PUCO “shot clocks” for rate cases.
- Requires a 360-day time period for rate cases once an application has been filed.
- Staff reports are required to be completed in 180 days.
- Exempts new discovery after 215 days.
- The Ohio Power Siting Board is required to complete all cases within 150 days after an application is deemed complete.
- Expands the opportunities for behind-the-meter generation.
- Requires EDUs to publish capacity maps and heat maps of their systems.
- Contains definitions of “advanced transmission technologies,” “advanced conductor,” and provisions designed to both study and promote the utilization of “grid-enhancing technologies,” otherwise known as GETs.
Stay tuned for additional updates from our colleagues as they do a deeper dive into some of H.B. 15’s provisions on how this legislation will transform Ohio’s energy landscape.
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