With the first year of the 129th General Assembly nearly in the book, it's an ideal time to recap what has happened thus far. A lot of progress and positive changes have been made in Ohio on the job creation front, and the same kind of effort must be made next year to continue that trend.

With a state unemployment rate having hovered above 9%, it is obvious that getting people back to work must be our first prerogative. From the time the House first convened in January to our sessions held just last week, the legislature has worked hard to seek innovative ways to stimulate job creation in Ohio. We just received word that, during the month of November, Ohio had its biggest decrease in unemployment in 30 years. Apparently Ohio's efforts are starting to bear fruit.

The first bill passed out of the House (HB 1) created JobsOhio, a non-profit panel of experienced private business experts to look for ways to make Ohio more economically competitive. They work with businesses that are interested in coming to the state and express to them all that our state has to offer. We have seen increased interest by businesses looking to relocate from another state and create jobs, and we've done a better job of retaining those businesses that might have left, including Edgetech, a company that recently announced it would remain in Cambridge and actually add 100 jobs. Senator Troy Balderson and I worked with Governor Kasich to make that possible, and that's great news for our part of the state. Meanwhile, credit agencies are lauding our efforts to make Ohio more fiscally sound, while downgrading the federal government. We need to stay the course.

A booming economy depends not only on a strong private sector, but also on a government that is accountable to the taxpayers. In order to meet that responsibility, I proudly supported House Bill 2, which allows the Auditor of State to conduct performance audits on state agencies. This will help ensure that all of our state agencies funded by the taxpayers are running smoothly and efficiently, without redundancies or waste. It is especially critical in times like these that we make every effort to get the most out of every tax dollar spent. I spoke with representatives in State Auditor Dave Yost's office last week; the results of the first performance audits will be available very soon. I'm also going to work with the auditor's office to see how we can reduce the cost of audits for those government subdivisions who receive clean audits.

One major initiative that has received a lot of attention has been the development of Ohio’s natural resources by drilling for oil and natural gas under the state’s surface. Certainly I and many others have discussed it on numerous occasions. More than 800,000 wells have been drilled in Ohio since the 1950s by utilizing hydraulic fracturing without a single confirmed case of water contamination, according to the Ohio Engineers' Association. Though we should always be cognizant of environmental concerns, the opportunity that natural gas and oil production presents for Ohio is encouraging. Most estimates predict that about 200,000 jobs can be created from this development, many of which will be created in the 93rd District and adjacent counties. Already we are seeing booming retail sales of automobiles, farm equipment and other amenities. Hotel rooms are booked; many for an entire year in advance. Now we need to explore how we can capably undertake the massive workforce development this shale play will require over the next decade.

The mission of the 129th General Assembly is simple: Reduce the cost of doing business in Ohio by lowering the tax burden and keeping government from standing in the way of free market growth. Ohio’s economy is beginning to move forward once again, and I have faith that we will see even more progress made next year.

There has been a great deal of attention directed toward the development of Ohio’s natural gas and oil through a process known as hydraulic fracturing, or “fracking.” A recent editorial in the Toledo Blade expressed the need for caution and government oversight before pursuing these interests because a misstep in the fracking process can harm our environment and threaten public safety.

One of the most common concerns about fracking is the potential for chemicals used during the process to leak into neighboring water sources, including drinking water. Though certainly a legitimate concern, the facts of past drilling show that the possibility for groundwater contamination is extremely uncommon. In fact, according to the Ohio Engineers Association, since the early 1950s, more than 80,000 wells of varying depths have been drilled in Ohio using this process with no confirmed incidents of groundwater contamination.

Obviously, an adequate level of supervision and oversight is necessary in order to protect the environment and the lives of Ohio citizens. But where should this oversight come from? A distant, centralized authority in Washington? Or a more localized governing body that knows the unique attributes of the state’s land and people?

Just last year, the previous Ohio General Assembly passed one of the strictest laws in the country pertaining to oil, gas and shale development. This law enacted oversight on a wide range of issues and concerns dealing with the process, including hydraulic fracturing. Therefore, I think the claims that Ohio’s laws on this topic are too lenient are either disingenuous or absent of fact.

There is no question that Ohio’s primary concern is jobs. Our state’s economy has been struggling over the past few years, which has resulted in businesses, and subsequently large numbers of citizens, leaving our state to pursue greener economic pastures. The most prominent example proving this point is the fact that Ohio will be losing two members of Congress beginning in 2013 because of slowing population growth.

Our success at attracting business and investment in the state depends on our ability—and ultimately our willingness—to act upon economic opportunities when they present themselves. The development of Ohio’s natural resources has the potential to pump billions of dollars into our local economies and create hundreds of thousands of jobs.

Environmental concerns regarding this process are genuine and must be considered. But the technology required to extract these resources has an extensive track record of being safe and effective. Furthermore, the techniques in hydraulic fracturing are forever being improved.

In order for Ohio to once again be competitive with other states, we must prove to industries that we are willing to invest in economic opportunities and to show our citizens that we are willing to fight to keep them in the state.

Anyone who follows the energy industry in Ohio has had a lot to take in over the course of this year. Not only have these individuals had the opportunity to attend an energy summit in Columbus recently, but the summit started with the welcome news of just how much potential Ohio has in energy production.

The Ohio Oil & Gas Energy Education Association recently released a study that highlighted the impact that our state's oil and gas reserves can have on our economy. This includes an industry worth billions of dollars, along with the creation of more than 200,000 jobs. The jobs would come from leasing, royalties, exploration, production, as well as the construction jobs that come with having to build and operate such heavy equipment.

Put simply, the development that we can take advantage of from the Utica and Marcellus shale is not just gas development; it is economic development. For the longest time, there have been some who do not want to tap into the resources beneath our feet, but the fact of the matter is that stopping energy production keeps our state from good jobs that Ohioans desperately need. And aside from the jobs, we will have more state revenue through the growth of the economy and a greater supply of energy for our citizens.

By accessing Ohio's energy resources, our state can keep costs down for the families who need to hold onto their money and divert it to other expenses--especially those hit hard financially in the middle class. An example is the fact that when gas prices go up, so do transportation costs, which leads to increased prices at the grocery store. That can certainly add up when taking care of a family.

There is no reason we should be putting Ohio at a disadvantage while surrounding states take advantage of shale and other energy production methods. For this reason, the Ohio House has already passed legislation earlier this year that will form the Oil and Gas Leasing Commission.

Many people do not realize that the state of Ohio is the single largest land owner in the state. The Oil and Gas Leasing Commission will help us use our public lands to their fullest potential by acting as an advocate for our citizens. It will also allow those who manage these public lands to approve the development of the lands and act alongside both the state and federal government.

Through the bill, we have laid out the procedures required to lease land for oil and gas production on state-owned or state-managed lands. Not only will the leases provide another source of revenue, meaning taxes will not have to be raised, but it will allow additional funding for expenses such as equipment, renovations and repairs at the beautiful state parks we are fortunate enough to have.

With Ohio being as economically hard-hit as it has been, we must be doing everything we can to bring results to our citizens. The Oil and Gas Leasing Commission is a small first step. Tapping into our resources to reach Ohio's full economic potential is the best way to move forward from here.

For his efforts to advance the use of alternative fuels and advanced vehicle technology in Ohio, State Representative Ross McGregor (R-Springfield) was recently selected by the Clean Fuels Ohio board members as the 2011 Clean Fuels Ohio Public Servant of the Year.

“I am humbled and honored to have been selected as the Clean Fuels Ohio 2011 Public Servant of the Year,” McGregor said. “I am pleased to help promote and encourage the successful development of alternative fuel infrastructure and alternative fuel vehicles in Ohio.”

The Clean Fuels Ohio Annual Member Reception and Awards Ceremony will be held on October 13th at the Grange Insurance Audubon Center in Columbus.

Clean Fuels Ohio is a statewide non-profit organization dedicated to promoting the use of cleaner fuels and efficient vehicles.

In order to get our economy moving again, there are six key words I’d like to share with you: Stop the War on Abundant Energy! Ohio, like much of the country, has suffered the slings and arrows of a trying economy. College students fear graduation because there is so little opportunity awaiting them (I have two children attending Ohio colleges this fall). Our citizens wonder what tomorrow will bring—a rise in the debt ceiling, a plunge in the stock market, or the very real threat that their jobs will be the next ones to go. You can help change this equation.

Abundant (and inexpensive) energy is the key input or instigator to any economic turnaround. I’m sure the many economists advising you can demonstrate that every recession we’ve experienced in the past century has been preceded by a spike in energy prices. Likewise, economic recoveries are preceded by a drop in energy prices. We need to encourage energy exploration here at home, and we need to emphasize those abundant sources that lie beneath our feet, namely oil, natural gas, and coal.

All Americans share your desire to expand the energy choices for our consumers and businesses, but neither group wants to see prices spike to levels that preclude an economic turnaround. Thirty plus years ago, President Carter led the fight to switch us to alternative fuels, and we’re still struggling to make the economics work, even with billions of dollars in subsidies for wind and solar energy. Ohioans don’t care what kinds of jobs are available, but they insist that they pay well and actually materialize in our lifetimes.

When you allow the EPA or U.S. Army Corps of Engineers to hammer our energy producers by denying permits to mine or drill, you are dampening the entrepreneurial spirit that made this country great. When government picks winners and losers between energy producers, that spirit is again dampened. China wants to purchase every bit of coal and oil and gas we can produce; why don’t you?

We can make coal much cleaner, if you’ll let us mine it. We can improve upon technologies for energy extraction, and we have—as you’ll note from the oil and gas exploration going on in the eastern part of our state. We can produce good paying jobs, a spike in property values and income from those properties, and we can bring real prosperity to downtrodden communities.

We must have responsible regulation. In fact, these are some of the most regulated industries in the world. But current rule-making in Washington is overly complex, and that is being kind. Companies attempting to respond find that they can’t hit a moving target, as the rules are being revised even as the companies file their responses. The Ohio Coal Association estimates that two rules (the Air Transport Rule and electric utility MACT—maximum achievable control technology—Rule) to be implemented in 2012 would eliminate more than 53,000 jobs in Ohio alone.

At the same time, activists are being trained and then paid to go door-to-door to frighten our citizens about coal mining’s impact on groundwater and the air, as well as the danger of hydraulic fracturing in the oil and gas industry. So I have to ask: Is this the America you want for our citizens? Is this the path to economic recovery and prosperity? Or are these merely more of the “political games” you denounce?

Ohio is a vital piece of the political puzzle, certainly, but it’s also indispensable to growing our nation’s economic pie. Leadership requires that we assess opportunities and risks in a rational manner and make the best decisions possible for the future of our state and country. We have the inexpensive energy our country needs right here in Ohio. If we can explore, we can produce. If we can produce, we can be the engine that gets our economy moving again. It’s a matter of simple economics. Stop the War on Abundant Energy!

State Representative John Carey (R-Wellston) will join several members of the Ohio Legislature in an Ohio coal summit to hear testimony on the importance of coal to the region’s economy.

The coal summit—which will also be attended by Rep. Andy Thompson (R-Marietta), Rep. Cliff Rosenberger (R-Clarksville), Rep. Debbie Phillips (D-Athens), Rep. Lou Gentile (D-Steubenville) and Sen. David Daniels (R-Greenfield)—will take place during the Wellston Coal Festival on Friday, September 9th. It will be held at 10 a.m. in the Wellston Depot at the corner of Second Street and Railroad Avenue in downtown Wellston.

Testimony is expected from the Ohio Coal Association, U.S.-China Economic Partnership, Battelle, and other local representatives of mines and the community. The hearing is open to the public.

Ohio House Speaker William G. Batchelder (R-Medina) sent a letter to Ohio Governor John Kasich today reaffirming the importance of working together to ensure Ohio has a sound business-oriented energy policy. Speaker Batchelder said that the move is in-line with the Republican Caucus’ continued focus on jobs and fixing Ohio’s economy.

“As you know, Ohio took the important steps to foster meaningful electric competition with Senate Bill 3 during the 123rd General Assembly; more recently in the 127th General Assembly, additional energy reforms were enacted through Senate Bill 221, which has allowed electric customers to see substantial benefits from energy competition,” Speaker Batchelder said in his letter. “It is my belief that further pursuing the deregulatory reforms set forth in Senate Bills 3 and 221, particularly in the area of generation, will encourage additional competition and continue to result in savings for businesses and families.”

Speaker Batchelder indicated that any move towards re-regulation would be destructive to Ohio’s already fragile economy. “My caucus feels very strongly that a move toward re-regulation will eliminate jobs, not create them, and negatively impact Ohio's economic recovery,” he said.

House Public Utilities Committee Chairman Peter Stautberg (R-Cincinnati) will be holding a series of hearings over the next several months with the goal of providing oversight on and assessing Ohio’s regulatory climate. Speaker Batchelder said he looks forward to working with Governor Kasich and his administration “toward an energy policy that will result in an environment that businesses can thrive on through a reliable and affordable electricity supply.”

 

State Representative Troy Balderson (R-Zanesville) has announced that Governor John Kasich signed House Bill 163 into law on June 30, 2011. This bill, proposed by Representative Balderson, revises Ohio coal mining laws regarding permit application, set-back, and alternative water treatment or supply requirements.

Among other provisions, House Bill 163 requires an applicant for a coal mining operation permit to submit either the surface owner’s written consent or a conveyance only if surface disturbance will result from the applicant’s proposed use of strip mining. It also requires specified set-backs for coal mining operations to be measured horizontally.

“The technology driving this legislation is very portable and is being widely used in other coal mining states to increase production and jobs,” said Balderson, who serves as chairman of the House Finance and Appropriations Agriculture and Natural Resources Subcommittee, as well as a member of the Agriculture and Natural Resources Committee. “Many Ohio companies have invested in this technology, and I’m pleased that this now has the opportunity to be a statewide investment.”

The legislation will bring permit application requirements in line with advances in mining technology. Currently, mining can now begin with a surface cut but then advance underground in a manner engineered to prevent surface disturbance. Through House Bill 163, the Ohio Department of Natural Resources would be able to tailor mining permits based on the actual impacts of mining rather than on the name of the mining method.

House Bill 163 does not impact the environment or change any current environmental protection standard. Additionally, it does not have an impact on the budget.

In a move of true bipartisanship, Balderson’s bill passed both the Ohio House of Representatives and the Ohio Senate unanimously. Representative Balderson also thanked Mike Carey with the Ohio Coal Association for their assistance in crafting this piece of legislation into law and former Senator Jimmy Stewart for sponsoring the bill in the Ohio Senate.

Having lived in Ohio all my life, I really enjoy the opportunity to travel around the state and see all that Ohio has to offer. Even as I drive back and forth from my home in Pierpont to the Statehouse in Columbus, it is easy to see the differences in Ohio’s landscape. This is why millions of Ohioans and those from out of state take the time to visit our state’s public lands every year.

In fact, the State of Ohio is the single largest landowner in the state. The problem is that we have not been using these lands to their full potential. By better managing these properties, we can avoid the funding problems we see today. One of the ways to do this is by leasing the lands for oil and gas production.

In an effort to take advantage of these natural treasures, where the resources are found within nature, House Bill 133—which was just passed by the House—creates the Oil and Gas Leasing Commission. This commission will act as an advocate of the people of Ohio, ensuring that public land managers have the authority to approve the development of their lands. It is also in the best interest of Ohio that they can control the property, acting alongside the state and federal government.

I support this legislation because it is fundamentally about our state helping itself, rather than increasing the tax burden on more of its citizens. Through the bill, the procedures for the state entering into leases are laid out for oil and gas production on land owned or under control of a state agency. Doing this will provide additional funding for expenses like equipment, renovations and repairs.

What’s even more important to me is that this legislation will benefit the people of Ashtabula and Trumbull counties by watching out for the middle class. Certainly we are aware that when gas prices rise it hurts, and so do other prices—such as food—because of the cost of transporting those items to our local communities. When families are already having a difficult time putting food on the table, there is no reason we should be hindering ourselves by not tapping into what is right under our noses.

By developing these natural resources, Ohio can increase the use of its manufacturing base, meaning more investment in our local economies and more jobs for our citizens. In a place already economically hard-hit, we must be doing everything we can to ensure that we do not face this disadvantage.

Solutions and results do not come over night, but we must continue to work toward them. Passing this legislation is one more step along the way.

The Ohio House of Representatives today voted to pass Substitute House Bill 133, which would responsibly develop Ohio’s energy sector while creating jobs and boosting economic development in Ohio.

Specifically, Sub. H.B. 133 asserts that it is the policy of the state to provide access to and support the exploration for, development of, and production of oil and natural gas resources on lands that are owned or controlled by the state. It creates the Oil and Gas Leasing Commission and establishes a procedure by which the commission may enter into leases for oil and gas production on land owned by or under the control of a state agency. These leases would serve to provide additional funding for capital costs, including equipment, renovations and repairs, and acquisition of additional lands.

The Ohio House adopted a Republican amendment to Sub. H.B. 133 that would exclude nature preserves from being nominated or leased for the purpose of developing oil and natural gas resources.

“This bill is fundamentally about the State of Ohio doing something to help its economy without increasing the tax burden on its citizens,” said State Representative John Adams (R-Sidney), who sponsored Sub. H.B. 133. “We need to be taking advantage of the resources we have right here at home in a responsible way, so we can create jobs and generate more economic activity in Ohio.”

“Not only is Ohio trapped in serious fiscal constraints, but Ohioans are also suffering extraordinarily high gas prices that make it difficult for them to drive to work, pick up the kids from school and live their day-to-day lives,” said State Representative Dave Hall (R-Millersburg), the chairman of the House Agriculture and Natural Resources Committee. “Ohio’s consumers will all benefit from an increased local energy supply, which will help to reduce overall energy and transportation costs. We cannot miss out on this opportunity to bring jobs, economic growth and lower energy prices to Ohio.”

Currently, the Ohio Department of Natural Resources has a backlog of more than half a billion dollars in capital improvements in state parks. This legislation would help to provide funding for these projects and ensure that Ohio’s state parks are protected and remain open to the public.

The House Democrats, despite Rep. Debbie Phillips’ claim that the caucus’s opposition to the bill has nothing to do with drilling but is instead based on the integrity of state parks, offered an amendment through Rep. Denise Driehaus to prohibit energy extraction on any state-owned land—not just state parks. In overreaching the intent of this bill, the House minority caucus has shown that they are disingenuous about their reasons for opposing Sub. H.B. 133 and are politicizing what should be a focus on jobs and modernizing Ohio’s economy.

Sub. H.B. 133 has received the support of the Ohio Department of Natural Resources, the Ohio Oil and Gas Association, the Ohio Chamber of Commerce, and the Ohio Manufacturers’ Association. It passed by a vote of 54-41 and will now move to the Ohio Senate for further consideration.