Ohio nuclear bribery scandal

The Ohio nuclear bribery scandal (2020) is a political scandal in Ohio involving allegations that electric utility company 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 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, 2020.[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]

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] Governor Mike DeWine signed the bill the day it passed.[4] 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]

Even before the bribery scandal came to light, the financial connections between Larry Householder and FirstEnergy were public knowledge. 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 asked Householder to resign, as did former Governor John Kasich who previously opposed H.B. 6,[6] but Householder refused.[7] Republican legislator Jamie Callender, who had 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 in the 2020 presidential election.[11] Biden ultimately lost Ohio to Donald Trump by 53.3% to 45.2%.[12]

Aftermath

On June 16, 2021, members of the Ohio House of Representatives voted to remove Larry Householder from the House.[13] The seat representing the 72nd House District was filled by Kevin D. Miller, a former State Highway Patrolman.[14]

A year after the news officially broke about the scandal, on July 22, 2021, the U.S. Attorney for the Southern District of Ohio announced that FirstEnergy would be fined $230 million for their part in it. Vipal J. Patel, the acting U.S. Attorney, said that this was the largest criminal fine ever collected by the Southern District.[15][16] On December 30, 2022, FirstEnergy agreed to pay a civil penalty of $3,860,000 to the United States Treasury.[17][18]

In March 2023 Householder was convicted of participating in racketeering conspiracy[19] and later that year sentenced to the maximum term of 20 years in prison.[20]

The Cleveland Browns announced on April 13, 2023, that the team and FirstEnergy had come to an agreement to immediately terminate the naming rights deal for the Browns' stadium, known as FirstEnergy Stadium since 2013, restoring the stadium's original moniker of Cleveland Browns Stadium.[21] The naming rights deal would have normally expired in 2029.[22]

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.
  12. cnn.com
  13. "Ohio Rep. Larry Householder was voted out of office. See how your Ohio House representative voted". www.msn.com. Retrieved 4 August 2021.
  14. "Kevin Miller Selected to Fill 72nd Ohio House Seat". www.ohiohouse.gov. Retrieved 4 August 2021.
  15. Tino Bovenzi (22 July 2021). "FirstEnergy criminally charged, fined $230M by DOJ For role in HB6 scandal". Spectrum News 1. Retrieved 4 August 2021.
  16. Andy Chow (August 4, 2021). "Audit Finds FirstEnergy Made Payments To Generation Now, Randazzo Groups". WOSU.
  17. Filing Description for Accession Number 20221230-3023
  18. Ethan Howland FirstEnergy agrees to pay $3.9M for failing to tell FERC about energy bill bribery payments in Utility Dive On Jan 3, 2023
  19. "Jury convicts former Ohio House Speaker, former chair of Ohio Republican Party of participating in racketeering conspiracy". 9 March 2023. Retrieved 2023-08-08.
  20. Adam Ferrise (29 June 2023). "Ex-Ohio House Speaker Larry Householder gets maximum 20 years in prison for largest bribery scandal in state history". cleveland.com. Retrieved 2023-08-08.
  21. "FirstEnergy and Cleveland Browns Mutually Agree to End Stadium Naming Rights Agreement". ClevelandBrowns.com. April 13, 2023. Retrieved April 13, 2023.
  22. Feran, Tom (January 22, 2013). "Mike Polensek says utility First Energy will have its name on a stadium powered by the city's electric company". Politifact Ohio. Retrieved November 2, 2016.
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