JobsOhio chairman hit with ethics complaint over lobbying ties to American Electric Power

JobsOhio is under renewed scrutiny over the agency’s $100 million energy fund and the chairman’s ties to lobbying and other conflicts of interest.

Democratic attorney general candidate John Kulewicz, who is running against current State Auditor Keith Faber, filed the ethics complaint against JobsOhio Board Chairman Josh Rubin, citing his relationship with American Electric Power.

Kulewicz claims Rubin has a conflict of interest regarding JobsOhio’s $100 million energy fund to help Ohio utilities update and expand natural gas and nuclear power plants.

JobsOhio, the state’s private nonprofit economic development corporation, created the Energy Opportunity Initiative to offer grants and low-interest loans for natural gas infrastructure and small modular nuclear reactor development.

Rubin is the founder and CEO of The CJR Group, which lobbies on behalf of Columbus-based AEP. The company is the largest electric distribution utility in Ohio and one of the largest investor-owned electric utilities in the nation.

Kulewicz, who is an attorney and Upper Arlington City Council member, filed the complaint with Ohio Inspector General Randy Meyer. He maintains the Opportunity Initiative could funnel money to AEP and alleges Rubin may have used his position at JobsOhio to directly benefit his client.

Although no money has been distributed from the JobsOhio $100 million energy fund yet, AEP could receive grants and low-interest loans through the program, The Columbus Dispatch reported.

Kulewicz told the Dispatch that JobsOhio is “paying AEP to develop mini-nuclear reactors that will have little to no local oversight and be owned by the utility company itself.”

In a WOSU News report, Ohio Auditor Keith Faber, who is running against Kulewicz in November’s election, dismissed the complaint as Kulewicz “flinging mud at the wall to see what will stick.”

Faber, a Republican, told the outlet he has been a consistent proponent of transparency since he became auditor. As attorney general, he said he will enforce the law and continue his “well-established record of rooting out waste, fraud, and abuse.”

Among his concerns, Kulewicz argues that AEP is, so far, the only major utility company to express interest in small modular nuclear reactors, which are used to power data centers. Kulewicz said mini-nuclear reactor technology in local communities deserves “transparency, scrutiny, and local involvement in the decision-making process.”

Besides conflict-of-interest concerns, the agency’s lack of oversight by state officials prompted the complaint.

“JobsOhio is basically asking us to take their word for it. You know, what concerns me is we’re not allowed to probe into that,” Kulewicz said per WOSU News.

JobsOhio, a private nonprofit funded by the state’s liquor profits, has 214 employees and $1.44 billion in assets, according to its latest tax filing. The organization was established in 2011 to help attract new businesses and development to the state without government bureaucracy.

Small modular reactors, which generate nuclear energy, have yet to be built in the U.S. JobsOhio spokesperson Ryan Squire told the Dispatch, “We do think SMRs are part of the future.”

JobsOhio has issued several statements saying there is no conflict of interest, and the Opportunity Initiative won’t benefit just one company. Officials also maintain no agreements related to the energy initiative have been signed yet.

AEP also issued a written statement, per the Dispatch, refuting claims the company “would pursue actions contrary to the best interests of our customers.”

“We want to make it clear that we have not received any of these funds, and in fact we are legally prohibited from owning generation assets under current state law,” the statement reads.

Earlier this year, Kulewicz filed another complaint with the inspector general, requesting an investigation into former Ohio State University President Ted Carter and JobsOhio. Carter resigned in March.

JobsOhio provided $60,000 in sponsorship funding to “The Callout” podcast. Carter appeared on the podcast and later admitted he had an “inappropriate relationship with someone seeking public resources to support her personal business.”

Following the scandal, a bipartisan pair of Ohio lawmakers announced legislation that would establish new oversight of JobsOhio. As a private nonprofit corporation, it is not subject to Ohio public records laws.

JobsOhio was created by the legislature and is funded through 2053 by leasing state liquor sales revenue. Lawmakers have suggested reforms are likely dead for now due to the upcoming governor’s race.

“We’re going to have a new governor in January, they may have a different idea about how these things are being run,” House Speaker Matt Huffman, R-Lima, recently told reporters. “A lot of these what I would call institutional or system changes should be done in concert with a new governor.”