Ohio nuclear bribery scandal

The Ohio nuclear bribery scandal is a 2020 political scandal in Ohio involving allegations that FirstEnergy paid roughly $60 million to Generation Now, a 501(c)(4) organization purportedly controlled by Speaker of the Ohio House of Representatives Larry Householder, in exchange for passing a $1.3 billion bailout for the struggling nuclear power operator.[1] It was described as "likely the largest bribery, money laundering scheme ever perpetrated against the people of the state of Ohio" by U.S. Attorney David M. DeVillers, who charged Householder and four others with racketeering on July 21.[2] According to prosecutors, FirstEnergy poured millions into the campaigns of 21 candidates during the 2018 Ohio House of Representatives election, which ultimately helped Householder replace Ryan Smith as Republican House speaker.[2]

According to DeVillers in late July 2020, the investigation is far from over. "There are a lot of federal agents knocking on a lot of doors."[2]

Background

In July 2019, the House passed House Bill 6,[lower-alpha 1] which increased electricity rates and provided that money as a $150 million per year subsidy for the Perry and Davis–Besse nuclear plants, subsidized coal-fired power plants, and reduced subsidies for renewable energy and energy efficiency.[3][1] This bill was described as the "worst legislation yet" among bills that subsidize fossil fuels by Leah Stokes,[4] and the "worst energy bill of the 21st century" by David Roberts of Vox,[3] because of the way it halted the shift towards cheaper renewable energy sources by propping up old, unprofitable coal and nuclear power plants.[3]

Even before the bribery scandal came to light, the financial connections between Larry Householder and FirstEnergy were public knowledge. FirstEnergy had written "big checks" to Householder and other Republicans in the Ohio House of Representatives.[5] In addition, Householder and his son flew on a corporate jet owned by FirstEnergy to attend the Inauguration of Donald Trump.[5]

Consumer advocates and the natural gas industry tried to place a ballot initiative on the 2020 ballot to overturn the law, but were unsuccessful due to negative campaigning by Generation Now.[2]

Reactions

Governor Mike DeWine has asked Householder to resign, as has former Governor John Kasich who previously opposed H.B. 6,[6] but Householder refused.[7] Republican legislator Jamie Callender, who sponsored the bill, claimed no knowledge of the scheme and said that he felt "betrayed".[8] Democratic U.S. Senator Sherrod Brown also joined the prominent voices calling for Householder's resignation, and additionally blamed the scandal on Republican one-party rule in Ohio state politics.[9]

DeWine had earlier resisted calls to repeal H.B. 6, but changed his mind on July 23, stating: "No matter how good this policy is, the process by which this bill was passed is simply not acceptable. That process, I believe, has forever tainted the bill and now the law itself." DeWine urged the House to quickly select a new speaker in order to pass a replacement bill.[10]

The scandal, which occurred during a presidential election campaign, led to speculation about whether it could lead Joe Biden to win the state.[11]

Notes
  1. 133rd Ohio General Assembly. "House Bill 6".

References
  1. Wamsley, Laurel (21 July 2020). "Ohio House Speaker Arrested In Connection With $60 Million Bribery Scheme". NPR. Retrieved 23 July 2020.
  2. Armus, Teo (22 July 2020). "GOP Ohio House speaker arrested in connection to $60 million bribery scheme". The Washington Post. Retrieved 23 July 2020.
  3. Roberts, David (2019-07-27). "Ohio just passed the worst energy bill of the 21st century". Vox. Retrieved 2020-08-05.
  4. "While the planet burns, Ohio's coal industry gets a bailout | Leah C Stokes". the Guardian. 2019-07-28. Retrieved 2020-08-05.
  5. Pelzer, Jeremy (2018-04-20). "FirstEnergy PAC writes big checks to House speaker hopeful Larry Householder, allies". cleveland. Retrieved 2020-08-06.
  6. Wolff, Eric (21 July 2020). "Ohio House speaker charged in bribery scheme over power plant bailout". Politico. Retrieved 23 July 2020.
  7. Pelzer, Jeremy (21 July 2020). "House Speaker Larry Householder says he won't resign despite arrest". Cleveland.com. Retrieved 23 July 2020.
  8. DeRoos, Dan (23 July 2020). "'I feel betrayed': Northeast Ohio lawmaker, sponsor of HB6 claims he knew nothing of corrupt plan". Cleveland 19. Retrieved 23 July 2020.
  9. Shillcock, George (22 July 2020). "Sen. Sherrod Brown blames GOP single-party rule for corruption case". The Columbus Dispatch. Retrieved 23 July 2020.
  10. Balmert, Jessie; Sparling, Hannah K. (23 July 2020). "DeWine reverses course, now calls for repeal of House Bill 6 at center of Ohio bribery probe". The Cincinnati Enquirer. Retrieved 23 July 2020.
  11. Wartman, Scott. "Will Larry Householder's $60 million GOP scandal hand Ohio to Biden? Dems hope so. Experts say not so fast". The Enquirer. Retrieved 2020-08-15.
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