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Athens Shoots for First-in-Nation Carbon Tax
By: Taylor Bruck
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If voters approve the opt-out carbon fee in the May 8 election, Athens will be the first in the nation to implement a program like this.
The fee would fund the installation of solar panels on public buildings in Athens. The resulting savings on utility bills would be used to support other projects in the city.
According to the Southeast Ohio Public Energy Council, in 2017 damage to the environment from carbon emissions in Athens alone totaled more than a million dollars. The proposed opt-out carbon fee is aimed at decreasing that number.
Athens Mayor Steve Patterson said this issue is Athens’ effort to be proactive in addressing environmental problems.
“This allows us, on our own, to kind of get back ahead to where we’re more efficiently and effectively utilizing your taxpayer dollars on municipal buildings,” he said.
Athens resident Joan Kraynanaski said she thinks the process of raising enough money for solar panels will be a slow one, but likes the idea.
“It’s going to take a while, I think, to generate enough income to really think of this as a massive blast of solar power in Athens, but I think it’s really important,” she said.
Kraynanaski said she wants the city to be a leader for other cities as they attempt similar programs.
“We can offer them examples of how to go about doing this for all the community,” she said.
Athens City Council President Chris Knisely said she would like Athens to inspire as well as educate others.
“I think it is a good model for other communities to be able to follow,” she said.
The Opt-Out Carbon Fee
In February, Athens City Council approved an ordinance placing the opt-out carbon fee on the Athens’ ballot.
The revenues collected through the fee would be invested into a community solar program to develop rooftop solar systems on public buildings in the City of Athens. Those buildings could include schools, county government buildings and buildings used by public boards such as the Athens County Board of Developmental Disabilities and the Fair Board.
The carbon fee would be charged through Southeast Ohio Public Energy Council‘s (SOPEC) Opt-Out Electric Aggregation program. If the ordinance passes, Athens residents would initially have 21 days to opt out, but could also try it for 21 days and opt out any time after that.
Carbon Concerns
According to the Southeast Ohio Public Energy Council, carbon emissions are costly.
- Every ton of carbon emissions results in $36 in damage to the environment .
- Every megawatt hour of electricity generated in Ohio results in 1,510 pounds of carbon emissions.
The Market-Based Solution
- A carbon fee accounts for this damage by factoring the cost into the price of energy
- Energy consumers pay for the total cost of their energy consumption on the economy, the environment and society.
- Paying the full cost of energy creates an incentive to conserve energy, invest in energy-efficient upgrades and install solar panels.
The Cost of a Full Carbon Fee
- A full-carbon fee that accounts for all of the economic damage created from electric generation in Ohio would cost 2.7 cents per kilowatt hour.
- The average home consuming between 800-900 kilowatt hours each month, would see an increase of between $21.60-$24.30 per month on their electric bill if the full cost were applied.
Opt-Out Carbon Fee
- The proposed opt-out carbon fee would charge only a partial carbon fee at 0.2 cents per kilowatt hour – less than one-tenth of the full-carbon fee.
- The extra monthly charges from the partial-carbon fee would range between $1.60-$1.80 per household per month.
- Customers can refuse to pay the partial-carbon fee at any time by calling the same toll-fee number for opting-out of the community aggregation program.
Community Solar Program Outcomes
- The partial-carbon fee would provide funding for 60 kilowatts of rooftop solar generation capacity per year.
- Each of these installations would offset 90,000 kilowatt hours of energy, saving the city $10,000 per year throughout the service life of the system.
- After ten years, the installations would offset 900,000 kilowatt hours of energy and save $100,000 per year.
Tips for Saving Money and Conserving Energy
- Turn your water heater down to 120 degrees Fahrenheit. The higher the temperature, the more energy needed to maintain that heat.
- Wash clothes in cold water. Up to 90 percent of the energy consumed in washing clothes is used to heat the water.
- Install LED light bulbs or LED strip lights.
- Turn off lights when leaving a room and unplug appliances that are not in use.
- Adjust your thermostat one-degree Fahrenheit compared to your normal setting. This one-degree Fahrenheit change will completely offset the carbon fee for the average residential customer.