Bill Text: OH HB443 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To include cogeneration technology using waste or byproduct gas from an air contaminant source as a renewable energy resource.

Spectrum: Slight Partisan Bill (Republican 13-7)

Status: (Introduced - Dead) 2012-02-08 - To Public Utilities [HB443 Detail]

Download: Ohio-2011-HB443-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 443

Representative Conditt 

Cosponsors: Representatives Grossman, McGregor, Derickson, Boose, Adams, J., Letson, Goyal, Pelanda, Hackett, Gerberry, Barnes, Patmon, Butler, Combs, Cera, Terhar, Pillich, Brenner, Wachtmann 

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A BILL

To amend sections 3706.25 and 4928.01 of the Revised

1

Code to include cogeneration technology using

2

waste or byproduct gas from an air contaminant

3

source as a renewable energy resource.

4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3706.25 and 4928.01 of the Revised	5
Code be amended to read as follows:	6

Sec. 3706.25. As used in sections 3706.25 to 3706.30 of the	7
Revised Code:	8

(A) "Advanced energy project" means any technologies,	9
products, activities, or management practices or strategies that	10
facilitate the generation or use of electricity or energy and that	11
reduce or support the reduction of energy consumption or support	12
the production of clean, renewable energy for industrial,	13
distribution, commercial, institutional, governmental, research,	14
not-for-profit, or residential energy users including, but not	15
limited to, advanced energy resources and renewable energy	16
resources. "Advanced energy project" includes any project	17
described in division (A), (B), or (C) of section 4928.621 of the	18
Revised Code.	19

(B) "Advanced energy resource" means any of the following:

20

(1) Any method or any modification or replacement of any	21
property, process, device, structure, or equipment that increases	22
the generation output of an electric generating facility to the	23
extent such efficiency is achieved without additional carbon	24
dioxide emissions by that facility;	25

(2) Any distributed generation system consisting of customer	26
cogeneration of electricity and thermal output simultaneously,	27
primarily to meet the energy needs of the customer's facilities;	28

(3) Advanced nuclear energy technology consisting of	29
generation III technology as defined by the nuclear regulatory	30
commission; other, later technology; or significant improvements	31
to existing facilities;	32

(4) Any fuel cell used in the generation of electricity,	33
including, but not limited to, a proton exchange membrane fuel	34
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	35
solid oxide fuel cell;	36

(5) Advanced solid waste or construction and demolition	37
debris conversion technology, including, but not limited to,	38
advanced stoker technology, and advanced fluidized bed	39
gasification technology, that results in measurable greenhouse gas	40
emissions reductions as calculated pursuant to the United States	41
environmental protection agency's waste reduction model (WARM).	42

(C) "Air contaminant source" has the same meaning as in	43
section 3704.01 of the Revised Code.	44

(D) "Cogeneration technology" means technology that produces	45
electricity and useful thermal output simultaneously.	46

(E) "Renewable energy resource" means solar photovoltaic or	47
solar thermal energy, wind energy, power produced by a	48
hydroelectric facility, geothermal energy, fuel derived from solid	49
wastes, as defined in section 3734.01 of the Revised Code, through	50
fractionation, biological decomposition, or other process that	51
does not principally involve combustion, biomass energy, energy	52
produced by cogeneration technology for which more than ninety per	53
cent of the total annual energy input is from a waste or byproduct	54
gas from an air contaminant source in this state, which source has	55
been in operation since on or before January 1, 1985, biologically	56
derived methane gas, or energy derived from nontreated by-products	57
of the pulping process or wood manufacturing process, including	58
bark, wood chips, sawdust, and lignin in spent pulping liquors.	59
"Renewable energy resource" includes, but is not limited to, any	60
fuel cell used in the generation of electricity, including, but	61
not limited to, a proton exchange membrane fuel cell, phosphoric	62
acid fuel cell, molten carbonate fuel cell, or solid oxide fuel	63
cell; wind turbine located in the state's territorial waters of	64
Lake Erie; methane gas emitted from an abandoned coal mine;	65
storage facility that will promote the better utilization of a	66
renewable energy resource that primarily generates off peak; or	67
distributed generation system used by a customer to generate	68
electricity from any such energy. As used in this division,	69
"hydroelectric facility" means a hydroelectric generating facility	70
that is located at a dam on a river, or on any water discharged to	71
a river, that is within or bordering this state or within or	72
bordering an adjoining state and meets all of the following	73
standards:	74

(1) The facility provides for river flows that are not	75
detrimental for fish, wildlife, and water quality, including	76
seasonal flow fluctuations as defined by the applicable licensing	77
agency for the facility.	78

(2) The facility demonstrates that it complies with the water	79
quality standards of this state, which compliance may consist of	80
certification under Section 401 of the "Clean Water Act of 1977,"	81
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	82
not contributed to a finding by this state that the river has	83
impaired water quality under Section 303(d) of the "Clean Water	84
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	85

(3) The facility complies with mandatory prescriptions	86
regarding fish passage as required by the federal energy	87
regulatory commission license issued for the project, regarding	88
fish protection for riverine, anadromous, and catadromus	89
catadromous fish.	90

(4) The facility complies with the recommendations of the	91
Ohio environmental protection agency and with the terms of its	92
federal energy regulatory commission license regarding watershed	93
protection, mitigation, or enhancement, to the extent of each	94
agency's respective jurisdiction over the facility.	95

(5) The facility complies with provisions of the "Endangered	96
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	97
amended.	98

(6) The facility does not harm cultural resources of the	99
area. This can be shown through compliance with the terms of its	100
federal energy regulatory commission license or, if the facility	101
is not regulated by that commission, through development of a plan	102
approved by the Ohio historic preservation office, to the extent	103
it has jurisdiction over the facility.	104

(7) The facility complies with the terms of its federal	105
energy regulatory commission license or exemption that are related	106
to recreational access, accommodation, and facilities or, if the	107
facility is not regulated by that commission, the facility	108
complies with similar requirements as are recommended by resource	109
agencies, to the extent they have jurisdiction over the facility;	110
and the facility provides access to water to the public without	111
fee or charge.	112

(8) The facility is not recommended for removal by any	113
federal agency or agency of any state, to the extent the	114
particular agency has jurisdiction over the facility.	115

Sec. 4928.01.  (A) As used in this chapter:

116

(1) "Ancillary service" means any function necessary to the	117
provision of electric transmission or distribution service to a	118
retail customer and includes, but is not limited to, scheduling,	119
system control, and dispatch services; reactive supply from	120
generation resources and voltage control service; reactive supply	121
from transmission resources service; regulation service; frequency	122
response service; energy imbalance service; operating	123
reserve-spinning reserve service; operating reserve-supplemental	124
reserve service; load following; back-up supply service;	125
real-power loss replacement service; dynamic scheduling; system	126
black start capability; and network stability service.	127

(2) "Billing and collection agent" means a fully independent	128
agent, not affiliated with or otherwise controlled by an electric	129
utility, electric services company, electric cooperative, or	130
governmental aggregator subject to certification under section	131
4928.08 of the Revised Code, to the extent that the agent is under	132
contract with such utility, company, cooperative, or aggregator	133
solely to provide billing and collection for retail electric	134
service on behalf of the utility company, cooperative, or	135
aggregator.	136

(3) "Certified territory" means the certified territory	137
established for an electric supplier under sections 4933.81 to	138
4933.90 of the Revised Code.	139

(4) "Competitive retail electric service" means a component	140
of retail electric service that is competitive as provided under	141
division (B) of this section.	142

(5) "Electric cooperative" means a not-for-profit electric	143
light company that both is or has been financed in whole or in	144
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	145
7 U.S.C. 901, and owns or operates facilities in this state to	146
generate, transmit, or distribute electricity, or a not-for-profit	147
successor of such company.	148

(6) "Electric distribution utility" means an electric utility	149
that supplies at least retail electric distribution service.	150

(7) "Electric light company" has the same meaning as in	151
section 4905.03 of the Revised Code and includes an electric	152
services company, but excludes any self-generator to the extent	153
that it consumes electricity it so produces, sells that	154
electricity for resale, or obtains electricity from a generating	155
facility it hosts on its premises.	156

(8) "Electric load center" has the same meaning as in section	157
4933.81 of the Revised Code.	158

(9) "Electric services company" means an electric light	159
company that is engaged on a for-profit or not-for-profit basis in	160
the business of supplying or arranging for the supply of only a	161
competitive retail electric service in this state. "Electric	162
services company" includes a power marketer, power broker,	163
aggregator, or independent power producer but excludes an electric	164
cooperative, municipal electric utility, governmental aggregator,	165
or billing and collection agent.	166

(10) "Electric supplier" has the same meaning as in section	167
4933.81 of the Revised Code.	168

(11) "Electric utility" means an electric light company that	169
has a certified territory and is engaged on a for-profit basis	170
either in the business of supplying a noncompetitive retail	171
electric service in this state or in the businesses of supplying	172
both a noncompetitive and a competitive retail electric service in	173
this state. "Electric utility" excludes a municipal electric	174
utility or a billing and collection agent.	175

(12) "Firm electric service" means electric service other	176
than nonfirm electric service.	177

(13) "Governmental aggregator" means a legislative authority	178
of a municipal corporation, a board of township trustees, or a	179
board of county commissioners acting as an aggregator for the	180
provision of a competitive retail electric service under authority	181
conferred under section 4928.20 of the Revised Code.	182

(14) A person acts "knowingly," regardless of the person's	183
purpose, when the person is aware that the person's conduct will	184
probably cause a certain result or will probably be of a certain	185
nature. A person has knowledge of circumstances when the person is	186
aware that such circumstances probably exist.	187

(15) "Level of funding for low-income customer energy	188
efficiency programs provided through electric utility rates" means	189
the level of funds specifically included in an electric utility's	190
rates on October 5, 1999, pursuant to an order of the public	191
utilities commission issued under Chapter 4905. or 4909. of the	192
Revised Code and in effect on October 4, 1999, for the purpose of	193
improving the energy efficiency of housing for the utility's	194
low-income customers. The term excludes the level of any such	195
funds committed to a specific nonprofit organization or	196
organizations pursuant to a stipulation or contract.	197

(16) "Low-income customer assistance programs" means the	198
percentage of income payment plan program, the home energy	199
assistance program, the home weatherization assistance program,	200
and the targeted energy efficiency and weatherization program.	201

(17) "Market development period" for an electric utility	202
means the period of time beginning on the starting date of	203
competitive retail electric service and ending on the applicable	204
date for that utility as specified in section 4928.40 of the	205
Revised Code, irrespective of whether the utility applies to	206
receive transition revenues under this chapter.	207

(18) "Market power" means the ability to impose on customers	208
a sustained price for a product or service above the price that	209
would prevail in a competitive market.	210

(19) "Mercantile customer" means a commercial or industrial	211
customer if the electricity consumed is for nonresidential use and	212
the customer consumes more than seven hundred thousand kilowatt	213
hours per year or is part of a national account involving multiple	214
facilities in one or more states.	215

(20) "Municipal electric utility" means a municipal	216
corporation that owns or operates facilities to generate,	217
transmit, or distribute electricity.	218

(21) "Noncompetitive retail electric service" means a	219
component of retail electric service that is noncompetitive as	220
provided under division (B) of this section.	221

(22) "Nonfirm electric service" means electric service	222
provided pursuant to a schedule filed under section 4905.30 of the	223
Revised Code or pursuant to an arrangement under section 4905.31	224
of the Revised Code, which schedule or arrangement includes	225
conditions that may require the customer to curtail or interrupt	226
electric usage during nonemergency circumstances upon notification	227
by an electric utility.	228

(23) "Percentage of income payment plan arrears" means funds	229
eligible for collection through the percentage of income payment	230
plan rider, but uncollected as of July 1, 2000.	231

(24) "Person" has the same meaning as in section 1.59 of the	232
Revised Code.	233

(25) "Advanced energy project" means any technologies,	234
products, activities, or management practices or strategies that	235
facilitate the generation or use of electricity or energy and that	236
reduce or support the reduction of energy consumption or support	237
the production of clean, renewable energy for industrial,	238
distribution, commercial, institutional, governmental, research,	239
not-for-profit, or residential energy users, including, but not	240
limited to, advanced energy resources and renewable energy	241
resources. "Advanced energy project" also includes any project	242
described in division (A), (B), or (C) of section 4928.621 of the	243
Revised Code.	244

(26) "Regulatory assets" means the unamortized net regulatory	245
assets that are capitalized or deferred on the regulatory books of	246
the electric utility, pursuant to an order or practice of the	247
public utilities commission or pursuant to generally accepted	248
accounting principles as a result of a prior commission	249
rate-making decision, and that would otherwise have been charged	250
to expense as incurred or would not have been capitalized or	251
otherwise deferred for future regulatory consideration absent	252
commission action. "Regulatory assets" includes, but is not	253
limited to, all deferred demand-side management costs; all	254
deferred percentage of income payment plan arrears;	255
post-in-service capitalized charges and assets recognized in	256
connection with statement of financial accounting standards no.	257
109 (receivables from customers for income taxes); future nuclear	258
decommissioning costs and fuel disposal costs as those costs have	259
been determined by the commission in the electric utility's most	260
recent rate or accounting application proceeding addressing such	261
costs; the undepreciated costs of safety and radiation control	262
equipment on nuclear generating plants owned or leased by an	263
electric utility; and fuel costs currently deferred pursuant to	264
the terms of one or more settlement agreements approved by the	265
commission.	266

(27) "Retail electric service" means any service involved in	267
supplying or arranging for the supply of electricity to ultimate	268
consumers in this state, from the point of generation to the point	269
of consumption. For the purposes of this chapter, retail electric	270
service includes one or more of the following "service	271
components": generation service, aggregation service, power	272
marketing service, power brokerage service, transmission service,	273
distribution service, ancillary service, metering service, and	274
billing and collection service.	275

(28) "Starting date of competitive retail electric service"	276
means January 1, 2001.	277

(29) "Customer-generator" means a user of a net metering	278
system.	279

(30) "Net metering" means measuring the difference in an	280
applicable billing period between the electricity supplied by an	281
electric service provider and the electricity generated by a	282
customer-generator that is fed back to the electric service	283
provider.	284

(31) "Net metering system" means a facility for the	285
production of electrical energy that does all of the following:	286

(a) Uses as its fuel either solar, wind, biomass, landfill	287
gas, or hydropower, or uses a microturbine or a fuel cell;	288

(b) Is located on a customer-generator's premises;

289

(c) Operates in parallel with the electric utility's	290
transmission and distribution facilities;	291

(d) Is intended primarily to offset part or all of the	292
customer-generator's requirements for electricity.	293

(32) "Self-generator" means an entity in this state that owns	294
or hosts on its premises an electric generation facility that	295
produces electricity primarily for the owner's consumption and	296
that may provide any such excess electricity to another entity,	297
whether the facility is installed or operated by the owner or by	298
an agent under a contract.	299

(33) "Rate plan" means the standard service offer in effect	300
on the effective date of the amendment of this section by S.B. 221	301
of the 127th general assembly, July 31, 2008.	302

(34) "Advanced energy resource" means any of the following:

303

(a) Any method or any modification or replacement of any	304
property, process, device, structure, or equipment that increases	305
the generation output of an electric generating facility to the	306
extent such efficiency is achieved without additional carbon	307
dioxide emissions by that facility;	308

(b) Any distributed generation system consisting of customer	309
cogeneration of electricity and thermal output simultaneously;	310

(c) Clean coal technology that includes a carbon-based	311
product that is chemically altered before combustion to	312
demonstrate a reduction, as expressed as ash, in emissions of	313
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	314
sulfur trioxide in accordance with the American society of testing	315
and materials standard D1757A or a reduction of metal oxide	316
emissions in accordance with standard D5142 of that society, or	317
clean coal technology that includes the design capability to	318
control or prevent the emission of carbon dioxide, which design	319
capability the commission shall adopt by rule and shall be based	320
on economically feasible best available technology or, in the	321
absence of a determined best available technology, shall be of the	322
highest level of economically feasible design capability for which	323
there exists generally accepted scientific opinion;	324

(d) Advanced nuclear energy technology consisting of	325
generation III technology as defined by the nuclear regulatory	326
commission; other, later technology; or significant improvements	327
to existing facilities;	328

(e) Any fuel cell used in the generation of electricity,	329
including, but not limited to, a proton exchange membrane fuel	330
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	331
solid oxide fuel cell;	332

(f) Advanced solid waste or construction and demolition	333
debris conversion technology, including, but not limited to,	334
advanced stoker technology, and advanced fluidized bed	335
gasification technology, that results in measurable greenhouse gas	336
emissions reductions as calculated pursuant to the United States	337
environmental protection agency's waste reduction model (WARM).	338

(g) Demand-side management and any energy efficiency	339
improvement.	340

(35) "Air contaminant source" has the same meaning as in	341
section 3704.01 of the Revised Code.	342

(36) "Cogeneration technology" means technology that produces	343
electricity and useful thermal output simultaneously.	344

(37) "Renewable energy resource" means solar photovoltaic or	345
solar thermal energy, wind energy, power produced by a	346
hydroelectric facility, geothermal energy, fuel derived from solid	347
wastes, as defined in section 3734.01 of the Revised Code, through	348
fractionation, biological decomposition, or other process that	349
does not principally involve combustion, biomass energy, energy	350
produced by cogeneration technology for which more than ninety per	351
cent of the total annual energy input is from a waste or byproduct	352
gas from an air contaminant source in this state, which source has	353
been in operation since on or before January 1, 1985, biologically	354
derived methane gas, or energy derived from nontreated by-products	355
of the pulping process or wood manufacturing process, including	356
bark, wood chips, sawdust, and lignin in spent pulping liquors.	357
"Renewable energy resource" includes, but is not limited to, any	358
fuel cell used in the generation of electricity, including, but	359
not limited to, a proton exchange membrane fuel cell, phosphoric	360
acid fuel cell, molten carbonate fuel cell, or solid oxide fuel	361
cell; wind turbine located in the state's territorial waters of	362
Lake Erie; methane gas emitted from an abandoned coal mine;	363
storage facility that will promote the better utilization of a	364
renewable energy resource that primarily generates off peak; or	365
distributed generation system used by a customer to generate	366
electricity from any such energy. As used in division (A)(35)(37)	367
of this section, "hydroelectric facility" means a hydroelectric	368
generating facility that is located at a dam on a river, or on any	369
water discharged to a river, that is within or bordering this	370
state or within or bordering an adjoining state and meets all of	371
the following standards:	372

(a) The facility provides for river flows that are not	373
detrimental for fish, wildlife, and water quality, including	374
seasonal flow fluctuations as defined by the applicable licensing	375
agency for the facility.	376

(b) The facility demonstrates that it complies with the water	377
quality standards of this state, which compliance may consist of	378
certification under Section 401 of the "Clean Water Act of 1977,"	379
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	380
not contributed to a finding by this state that the river has	381
impaired water quality under Section 303(d) of the "Clean Water	382
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	383

(c) The facility complies with mandatory prescriptions	384
regarding fish passage as required by the federal energy	385
regulatory commission license issued for the project, regarding	386
fish protection for riverine, anadromous, and catadromous fish.	387

(d) The facility complies with the recommendations of the	388
Ohio environmental protection agency and with the terms of its	389
federal energy regulatory commission license regarding watershed	390
protection, mitigation, or enhancement, to the extent of each	391
agency's respective jurisdiction over the facility.	392

(e) The facility complies with provisions of the "Endangered	393
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	394
amended.	395

(f) The facility does not harm cultural resources of the	396
area. This can be shown through compliance with the terms of its	397
federal energy regulatory commission license or, if the facility	398
is not regulated by that commission, through development of a plan	399
approved by the Ohio historic preservation office, to the extent	400
it has jurisdiction over the facility.	401

(g) The facility complies with the terms of its federal	402
energy regulatory commission license or exemption that are related	403
to recreational access, accommodation, and facilities or, if the	404
facility is not regulated by that commission, the facility	405
complies with similar requirements as are recommended by resource	406
agencies, to the extent they have jurisdiction over the facility;	407
and the facility provides access to water to the public without	408
fee or charge.	409

(h) The facility is not recommended for removal by any	410
federal agency or agency of any state, to the extent the	411
particular agency has jurisdiction over the facility.	412

(B) For the purposes of this chapter, a retail electric	413
service component shall be deemed a competitive retail electric	414
service if the service component is competitive pursuant to a	415
declaration by a provision of the Revised Code or pursuant to an	416
order of the public utilities commission authorized under division	417
(A) of section 4928.04 of the Revised Code. Otherwise, the service	418
component shall be deemed a noncompetitive retail electric	419
service.	420

Section 2. That existing sections 3706.25 and 4928.01 of the	421
Revised Code are hereby repealed.	422

Section 3.  Section 4928.01 of the Revised Code is presented	423
in this act as a composite of the section as amended by both Am.	424
Sub. S.B. 181 and Am. Sub. S.B. 232 of the 128th General Assembly.	425
The General Assembly, applying the principle stated in division	426
(B) of section 1.52 of the Revised Code that amendments are to be	427
harmonized if reasonably capable of simultaneous operation, finds	428
that the composite is the resulting version of the section in	429
effect prior to the effective date of the section as presented in	430
this act.	431