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.