Bill Text: OH SB310 | 2013-2014 | 130th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To make changes to the renewable energy, energy efficiency, and peak demand reduction requirements, to prohibit the imposition of a waiting period before enrolling an eligible customer in the percentage of income payment plan, and to create a study committee.

Spectrum: Partisan Bill (Republican 18-0)

Status: (Passed) 2014-09-12 - Effective Date [SB310 Detail]

Download: Ohio-2013-SB310-Engrossed.html

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As Passed by the Senate

130th General Assembly Regular Session 2013-2014

Am. Sub. S. B. No. 310

Senator Balderson 

Cosponsors: Senators Coley, Eklund, Faber, Jones, Seitz 

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A BILL

To amend sections 3706.25, 4928.01, 4928.20, 4928.64,

1

4928.65, and 4928.66, to amend, for the purpose of

2

adopting a new section number as indicated in

3

parentheses, section 4928.65 (4928.645), and to

4

enact new section 4928.65 and sections 4928.641,

5

4928.642, 4928.662, 4928.6610, 4928.6611,

6

4928.6612, 4928.6613, 4928.6614, 4928.6615, and

7

4928.6616 of the Revised Code to make changes to

8

the renewable energy, energy efficiency, and peak

9

demand reduction requirements and to create a

10

study committee.

11

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

Section 1.  That sections 3706.25, 4928.01, 4928.20, 4928.64,	12
4928.65, and 4928.66 be amended, section 4928.65 (4928.645) be	13
amended for the purpose of adopting a new section number as	14
indicated in parentheses, and new section 4928.65 and sections	15
4928.641, 4928.642, 4928.662, 4928.6610, 4928.6611, 4928.6612,	16
4928.6613, 4928.6614, 4928.6615, and 4928.6616 of the Revised Code	17
be enacted to read as follows:	18

Sec. 3706.25. As used in sections 3706.25 to 3706.30 of the	19
Revised Code:	20

(A) "Advanced energy project" means any technologies,	21
products, activities, or management practices or strategies that	22
facilitate the generation or use of electricity or energy and that	23
reduce or support the reduction of energy consumption or support	24
the production of clean, renewable energy for industrial,	25
distribution, commercial, institutional, governmental, research,	26
not-for-profit, or residential energy users including, but not	27
limited to, advanced energy resources and renewable energy	28
resources. "Advanced energy project" includes any project	29
described in division (A), (B), or (C) of section 4928.621 of the	30
Revised Code.	31

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

32

(1) Any method or any modification or replacement of any	33
property, process, device, structure, or equipment that increases	34
the generation output of an electric generating facility to the	35
extent such efficiency is achieved without additional carbon	36
dioxide emissions by that facility;	37

(2) Any distributed generation system consisting of customer	38
cogeneration technology, primarily to meet the energy needs of the	39
customer's facilities;	40

(3) Advanced nuclear energy technology consisting of	41
generation III technology as defined by the nuclear regulatory	42
commission; other, later technology; or significant improvements	43
to existing facilities;	44

(4) Any fuel cell used in the generation of electricity,	45
including, but not limited to, a proton exchange membrane fuel	46
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	47
solid oxide fuel cell;	48

(5) Advanced solid waste or construction and demolition	49
debris conversion technology, including, but not limited to,	50
advanced stoker technology, and advanced fluidized bed	51
gasification technology, that results in measurable greenhouse gas	52
emissions reductions as calculated pursuant to the United States	53
environmental protection agency's waste reduction model (WARM).	54

(C) "Air contaminant source" has the same meaning as in	55
section 3704.01 of the Revised Code.	56

(D) "Cogeneration technology" means technology that produces	57
electricity and useful thermal output simultaneously.	58

(E) "Renewable energy resource" means solar photovoltaic or	59
solar thermal energy, wind energy, powerenergy produced by a	60
hydroelectric facility, geothermal energy, fuel derived from solid	61
wastes, as defined in section 3734.01 of the Revised Code, through	62
fractionation, biological decomposition, or other process that	63
does not principally involve combustion, biomass energy, energy	64
produced by cogeneration technology that is placed into service on	65
or before December 31, 2015, and for which more than ninety per	66
cent of the total annual energy input is from combustion of a	67
waste or byproduct gas from an air contaminant source in this	68
state, which source has been in operation since on or before	69
January 1, 1985, provided that the cogeneration technology is a	70
part of a facility located in a county having a population of more	71
than three hundred sixty-five thousand but less than three hundred	72
seventy thousand according to the most recent federal decennial	73
census, biologically derived methane gas, heat captured from a	74
generator of electricity, boiler, or heat exchanger fueled by	75
biologically derived methane gas, or energy derived from	76
nontreated by-products of the pulping process or wood	77
manufacturing process, including bark, wood chips, sawdust, and	78
lignin in spent pulping liquors. "Renewable energy resource"	79
includes, but is not limited to, any fuel cell used in the	80
generation of electricity, including, but not limited to, a proton	81
exchange membrane fuel cell, phosphoric acid fuel cell, molten	82
carbonate fuel cell, or solid oxide fuel cell; wind turbine	83
located in the state's territorial waters of Lake Erie; methane	84
gas emitted from an abandoned coal mine; storage facility that	85
will promote the better utilization of a renewable energy resource	86
that primarily generates off peak; or distributed generation	87
system used by a customer to generate electricity from any such	88
energy. As used in this division, "hydroelectric facility" means a	89
hydroelectric generating facility that is located at a dam on a	90
river, or on any water discharged to a river, that is within or	91
bordering this state or within or bordering an adjoining state and	92
meets all of the following standards:	93

(1) The facility provides for river flows that are not	94
detrimental for fish, wildlife, and water quality, including	95
seasonal flow fluctuations as defined by the applicable licensing	96
agency for the facility.	97

(2) The facility demonstrates that it complies with the water	98
quality standards of this state, which compliance may consist of	99
certification under Section 401 of the "Clean Water Act of 1977,"	100
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	101
not contributed to a finding by this state that the river has	102
impaired water quality under Section 303(d) of the "Clean Water	103
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	104

(3) The facility complies with mandatory prescriptions	105
regarding fish passage as required by the federal energy	106
regulatory commission license issued for the project, regarding	107
fish protection for riverine, anadromous, and catadromous fish.	108

(4) The facility complies with the recommendations of the	109
Ohio environmental protection agency and with the terms of its	110
federal energy regulatory commission license regarding watershed	111
protection, mitigation, or enhancement, to the extent of each	112
agency's respective jurisdiction over the facility.	113

(5) The facility complies with provisions of the "Endangered	114
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	115
amended.	116

(6) The facility does not harm cultural resources of the	117
area. This can be shown through compliance with the terms of its	118
federal energy regulatory commission license or, if the facility	119
is not regulated by that commission, through development of a plan	120
approved by the Ohio historic preservation office, to the extent	121
it has jurisdiction over the facility.	122

(7) The facility complies with the terms of its federal	123
energy regulatory commission license or exemption that are related	124
to recreational access, accommodation, and facilities or, if the	125
facility is not regulated by that commission, the facility	126
complies with similar requirements as are recommended by resource	127
agencies, to the extent they have jurisdiction over the facility;	128
and the facility provides access to water to the public without	129
fee or charge.	130

(8) The facility is not recommended for removal by any	131
federal agency or agency of any state, to the extent the	132
particular agency has jurisdiction over the facility.	133

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

134

(1) "Ancillary service" means any function necessary to the	135
provision of electric transmission or distribution service to a	136
retail customer and includes, but is not limited to, scheduling,	137
system control, and dispatch services; reactive supply from	138
generation resources and voltage control service; reactive supply	139
from transmission resources service; regulation service; frequency	140
response service; energy imbalance service; operating	141
reserve-spinning reserve service; operating reserve-supplemental	142
reserve service; load following; back-up supply service;	143
real-power loss replacement service; dynamic scheduling; system	144
black start capability; and network stability service.	145

(2) "Billing and collection agent" means a fully independent	146
agent, not affiliated with or otherwise controlled by an electric	147
utility, electric services company, electric cooperative, or	148
governmental aggregator subject to certification under section	149
4928.08 of the Revised Code, to the extent that the agent is under	150
contract with such utility, company, cooperative, or aggregator	151
solely to provide billing and collection for retail electric	152
service on behalf of the utility company, cooperative, or	153
aggregator.	154

(3) "Certified territory" means the certified territory	155
established for an electric supplier under sections 4933.81 to	156
4933.90 of the Revised Code.	157

(4) "Competitive retail electric service" means a component	158
of retail electric service that is competitive as provided under	159
division (B) of this section.	160

(5) "Electric cooperative" means a not-for-profit electric	161
light company that both is or has been financed in whole or in	162
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	163
7 U.S.C. 901, and owns or operates facilities in this state to	164
generate, transmit, or distribute electricity, or a not-for-profit	165
successor of such company.	166

(6) "Electric distribution utility" means an electric utility	167
that supplies at least retail electric distribution service.	168

(7) "Electric light company" has the same meaning as in	169
section 4905.03 of the Revised Code and includes an electric	170
services company, but excludes any self-generator to the extent	171
that it consumes electricity it so produces, sells that	172
electricity for resale, or obtains electricity from a generating	173
facility it hosts on its premises.	174

(8) "Electric load center" has the same meaning as in section	175
4933.81 of the Revised Code.	176

(9) "Electric services company" means an electric light	177
company that is engaged on a for-profit or not-for-profit basis in	178
the business of supplying or arranging for the supply of only a	179
competitive retail electric service in this state. "Electric	180
services company" includes a power marketer, power broker,	181
aggregator, or independent power producer but excludes an electric	182
cooperative, municipal electric utility, governmental aggregator,	183
or billing and collection agent.	184

(10) "Electric supplier" has the same meaning as in section	185
4933.81 of the Revised Code.	186

(11) "Electric utility" means an electric light company that	187
has a certified territory and is engaged on a for-profit basis	188
either in the business of supplying a noncompetitive retail	189
electric service in this state or in the businesses of supplying	190
both a noncompetitive and a competitive retail electric service in	191
this state. "Electric utility" excludes a municipal electric	192
utility or a billing and collection agent.	193

(12) "Firm electric service" means electric service other	194
than nonfirm electric service.	195

(13) "Governmental aggregator" means a legislative authority	196
of a municipal corporation, a board of township trustees, or a	197
board of county commissioners acting as an aggregator for the	198
provision of a competitive retail electric service under authority	199
conferred under section 4928.20 of the Revised Code.	200

(14) A person acts "knowingly," regardless of the person's	201
purpose, when the person is aware that the person's conduct will	202
probably cause a certain result or will probably be of a certain	203
nature. A person has knowledge of circumstances when the person is	204
aware that such circumstances probably exist.	205

(15) "Level of funding for low-income customer energy	206
efficiency programs provided through electric utility rates" means	207
the level of funds specifically included in an electric utility's	208
rates on October 5, 1999, pursuant to an order of the public	209
utilities commission issued under Chapter 4905. or 4909. of the	210
Revised Code and in effect on October 4, 1999, for the purpose of	211
improving the energy efficiency of housing for the utility's	212
low-income customers. The term excludes the level of any such	213
funds committed to a specific nonprofit organization or	214
organizations pursuant to a stipulation or contract.	215

(16) "Low-income customer assistance programs" means the	216
percentage of income payment plan program, the home energy	217
assistance program, the home weatherization assistance program,	218
and the targeted energy efficiency and weatherization program.	219

(17) "Market development period" for an electric utility	220
means the period of time beginning on the starting date of	221
competitive retail electric service and ending on the applicable	222
date for that utility as specified in section 4928.40 of the	223
Revised Code, irrespective of whether the utility applies to	224
receive transition revenues under this chapter.	225

(18) "Market power" means the ability to impose on customers	226
a sustained price for a product or service above the price that	227
would prevail in a competitive market.	228

(19) "Mercantile customer" means a commercial or industrial	229
customer if the electricity consumed is for nonresidential use and	230
the customer consumes more than seven hundred thousand kilowatt	231
hours per year or is part of a national account involving multiple	232
facilities in one or more states.	233

(20) "Municipal electric utility" means a municipal	234
corporation that owns or operates facilities to generate,	235
transmit, or distribute electricity.	236

(21) "Noncompetitive retail electric service" means a	237
component of retail electric service that is noncompetitive as	238
provided under division (B) of this section.	239

(22) "Nonfirm electric service" means electric service	240
provided pursuant to a schedule filed under section 4905.30 of the	241
Revised Code or pursuant to an arrangement under section 4905.31	242
of the Revised Code, which schedule or arrangement includes	243
conditions that may require the customer to curtail or interrupt	244
electric usage during nonemergency circumstances upon notification	245
by an electric utility.	246

(23) "Percentage of income payment plan arrears" means funds	247
eligible for collection through the percentage of income payment	248
plan rider, but uncollected as of July 1, 2000.	249

(24) "Person" has the same meaning as in section 1.59 of the	250
Revised Code.	251

(25) "Advanced energy project" means any technologies,	252
products, activities, or management practices or strategies that	253
facilitate the generation or use of electricity or energy and that	254
reduce or support the reduction of energy consumption or support	255
the production of clean, renewable energy for industrial,	256
distribution, commercial, institutional, governmental, research,	257
not-for-profit, or residential energy users, including, but not	258
limited to, advanced energy resources and renewable energy	259
resources. "Advanced energy project" also includes any project	260
described in division (A), (B), or (C) of section 4928.621 of the	261
Revised Code.	262

(26) "Regulatory assets" means the unamortized net regulatory	263
assets that are capitalized or deferred on the regulatory books of	264
the electric utility, pursuant to an order or practice of the	265
public utilities commission or pursuant to generally accepted	266
accounting principles as a result of a prior commission	267
rate-making decision, and that would otherwise have been charged	268
to expense as incurred or would not have been capitalized or	269
otherwise deferred for future regulatory consideration absent	270
commission action. "Regulatory assets" includes, but is not	271
limited to, all deferred demand-side management costs; all	272
deferred percentage of income payment plan arrears;	273
post-in-service capitalized charges and assets recognized in	274
connection with statement of financial accounting standards no.	275
109 (receivables from customers for income taxes); future nuclear	276
decommissioning costs and fuel disposal costs as those costs have	277
been determined by the commission in the electric utility's most	278
recent rate or accounting application proceeding addressing such	279
costs; the undepreciated costs of safety and radiation control	280
equipment on nuclear generating plants owned or leased by an	281
electric utility; and fuel costs currently deferred pursuant to	282
the terms of one or more settlement agreements approved by the	283
commission.	284

(27) "Retail electric service" means any service involved in	285
supplying or arranging for the supply of electricity to ultimate	286
consumers in this state, from the point of generation to the point	287
of consumption. For the purposes of this chapter, retail electric	288
service includes one or more of the following "service	289
components": generation service, aggregation service, power	290
marketing service, power brokerage service, transmission service,	291
distribution service, ancillary service, metering service, and	292
billing and collection service.	293

(28) "Starting date of competitive retail electric service"	294
means January 1, 2001.	295

(29) "Customer-generator" means a user of a net metering	296
system.	297

(30) "Net metering" means measuring the difference in an	298
applicable billing period between the electricity supplied by an	299
electric service provider and the electricity generated by a	300
customer-generator that is fed back to the electric service	301
provider.	302

(31) "Net metering system" means a facility for the	303
production of electrical energy that does all of the following:	304

(a) Uses as its fuel either solar, wind, biomass, landfill	305
gas, or hydropower, or uses a microturbine or a fuel cell;	306

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

307

(c) Operates in parallel with the electric utility's	308
transmission and distribution facilities;	309

(d) Is intended primarily to offset part or all of the	310
customer-generator's requirements for electricity.	311

(32) "Self-generator" means an entity in this state that owns	312
or hosts on its premises an electric generation facility that	313
produces electricity primarily for the owner's consumption and	314
that may provide any such excess electricity to another entity,	315
whether the facility is installed or operated by the owner or by	316
an agent under a contract.	317

(33) "Rate plan" means the standard service offer in effect	318
on the effective date of the amendment of this section by S.B. 221	319
of the 127th general assembly, July 31, 2008.	320

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

321

(a) Any method or any modification or replacement of any	322
property, process, device, structure, or equipment that increases	323
the generation output of an electric generating facility to the	324
extent such efficiency is achieved without additional carbon	325
dioxide emissions by that facility;	326

(b) Any distributed generation system consisting of customer	327
cogeneration technology;	328

(c) Clean coal technology that includes a carbon-based	329
product that is chemically altered before combustion to	330
demonstrate a reduction, as expressed as ash, in emissions of	331
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	332
sulfur trioxide in accordance with the American society of testing	333
and materials standard D1757A or a reduction of metal oxide	334
emissions in accordance with standard D5142 of that society, or	335
clean coal technology that includes the design capability to	336
control or prevent the emission of carbon dioxide, which design	337
capability the commission shall adopt by rule and shall be based	338
on economically feasible best available technology or, in the	339
absence of a determined best available technology, shall be of the	340
highest level of economically feasible design capability for which	341
there exists generally accepted scientific opinion;	342

(d) Advanced nuclear energy technology consisting of	343
generation III technology as defined by the nuclear regulatory	344
commission; other, later technology; or significant improvements	345
to existing facilities;	346

(e) Any fuel cell used in the generation of electricity,	347
including, but not limited to, a proton exchange membrane fuel	348
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	349
solid oxide fuel cell;	350

(f) Advanced solid waste or construction and demolition	351
debris conversion technology, including, but not limited to,	352
advanced stoker technology, and advanced fluidized bed	353
gasification technology, that results in measurable greenhouse gas	354
emissions reductions as calculated pursuant to the United States	355
environmental protection agency's waste reduction model (WARM);	356

(g) Demand-side management and any energy efficiency	357
improvement;	358

(h) Any new, retrofitted, refueled, or repowered generating	359
facility located in Ohio, including a simple or combined-cycle	360
natural gas generating facility or a generating facility that uses	361
biomass, coal, modular nuclear, or any other fuel as its input;	362

(i) Any uprated capacity of an existing electric generating	363
facility if the uprated capacity results from the deployment of	364
advanced technology.	365

"Advanced energy resource" does not include a waste energy	366
recovery system that is, or has been, included in an energy	367
efficiency program of an electric distribution utility pursuant to	368
requirements under section 4928.66 of the Revised Code.	369

(35) "Air contaminant source" has the same meaning as in	370
section 3704.01 of the Revised Code.	371

(36) "Cogeneration technology" means technology that produces	372
electricity and useful thermal output simultaneously.	373

(37)(a) "Renewable energy resource" means any of the	374
following:	375

(i) Solar photovoltaic or solar thermal energy;

376

(ii) Wind energy;

377

(iii) PowerEnergy produced by a hydroelectric facility;

378

(iv) Geothermal energy;

379

(v) Fuel derived from solid wastes, as defined in section	380
3734.01 of the Revised Code, through fractionation, biological	381
decomposition, or other process that does not principally involve	382
combustion;	383

(vi) Biomass energy;

384

(vii) Energy produced by cogeneration technology that is	385
placed into service on or before December 31, 2015, and for which	386
more than ninety per cent of the total annual energy input is from	387
combustion of a waste or byproduct gas from an air contaminant	388
source in this state, which source has been in operation since on	389
or before January 1, 1985, provided that the cogeneration	390
technology is a part of a facility located in a county having a	391
population of more than three hundred sixty-five thousand but less	392
than three hundred seventy thousand according to the most recent	393
federal decennial census;	394

(viii) Biologically derived methane gas;

395

(ix) Heat captured from a generator of electricity, boiler,	396
or heat exchanger fueled by biologically derived methane gas;	397

(x) Energy derived from nontreated by-products of the pulping	398
process or wood manufacturing process, including bark, wood chips,	399
sawdust, and lignin in spent pulping liquors.	400

"Renewable energy resource" includes, but is not limited to,	401
any fuel cell used in the generation of electricity, including,	402
but not limited to, a proton exchange membrane fuel cell,	403
phosphoric acid fuel cell, molten carbonate fuel cell, or solid	404
oxide fuel cell; wind turbine located in the state's territorial	405
waters of Lake Erie; methane gas emitted from an abandoned coal	406
mine; waste energy recovery system placed into service or	407
retrofitted on or after the effective date of the amendment of	408
this section by S.B. 315 of the 129th general assembly, September	409
10, 2012, except that a waste energy recovery system described in	410
division (A)(38)(b) of this section may be included only if it was	411
placed into service between January 1, 2002, and December 31,	412
2004; storage facility that will promote the better utilization of	413
a renewable energy resource; or distributed generation system used	414
by a customer to generate electricity from any such energy.	415

"Renewable energy resource" does not include a waste energy	416
recovery system that is, or was, on or after January 1, 2012,	417
included in an energy efficiency program of an electric	418
distribution utility pursuant to requirements under section	419
4928.66 of the Revised Code.	420

(b) As used in division (A)(37) of this section,	421
"hydroelectric facility" means a hydroelectric generating facility	422
that is located at a dam on a river, or on any water discharged to	423
a river, that is within or bordering this state or within or	424
bordering an adjoining state and meets all of the following	425
standards:	426

(i) The facility provides for river flows that are not	427
detrimental for fish, wildlife, and water quality, including	428
seasonal flow fluctuations as defined by the applicable licensing	429
agency for the facility.	430

(ii) The facility demonstrates that it complies with the	431
water quality standards of this state, which compliance may	432
consist of certification under Section 401 of the "Clean Water Act	433
of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates	434
that it has not contributed to a finding by this state that the	435
river has impaired water quality under Section 303(d) of the	436
"Clean Water Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	437

(iii) The facility complies with mandatory prescriptions	438
regarding fish passage as required by the federal energy	439
regulatory commission license issued for the project, regarding	440
fish protection for riverine, anadromous, and catadromous fish.	441

(iv) The facility complies with the recommendations of the	442
Ohio environmental protection agency and with the terms of its	443
federal energy regulatory commission license regarding watershed	444
protection, mitigation, or enhancement, to the extent of each	445
agency's respective jurisdiction over the facility.	446

(v) The facility complies with provisions of the "Endangered	447
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	448
amended.	449

(vi) The facility does not harm cultural resources of the	450
area. This can be shown through compliance with the terms of its	451
federal energy regulatory commission license or, if the facility	452
is not regulated by that commission, through development of a plan	453
approved by the Ohio historic preservation office, to the extent	454
it has jurisdiction over the facility.	455

(vii) The facility complies with the terms of its federal	456
energy regulatory commission license or exemption that are related	457
to recreational access, accommodation, and facilities or, if the	458
facility is not regulated by that commission, the facility	459
complies with similar requirements as are recommended by resource	460
agencies, to the extent they have jurisdiction over the facility;	461
and the facility provides access to water to the public without	462
fee or charge.	463

(viii) The facility is not recommended for removal by any	464
federal agency or agency of any state, to the extent the	465
particular agency has jurisdiction over the facility.	466

(38) "Waste energy recovery system" means either of the	467
following:	468

(a) A facility that generates electricity through the	469
conversion of energy from either of the following:	470

(i) Exhaust heat from engines or manufacturing, industrial,	471
commercial, or institutional sites, except for exhaust heat from a	472
facility whose primary purpose is the generation of electricity;	473

(ii) Reduction of pressure in gas pipelines before gas is	474
distributed through the pipeline, provided that the conversion of	475
energy to electricity is achieved without using additional fossil	476
fuels.	477

(b) A facility at a state institution of higher education as	478
defined in section 3345.011 of the Revised Code that recovers	479
waste heat from electricity-producing engines or combustion	480
turbines and that simultaneously uses the recovered heat to	481
produce steam, provided that the facility was placed into service	482
between January 1, 2002, and December 31, 2004.	483

(39) "Smart grid" means capital improvements to an electric	484
distribution utility's distribution infrastructure that improve	485
reliability, efficiency, resiliency, or reduce energy demand or	486
use, including, but not limited to, advanced metering and	487
automation of system functions.	488

(40) "Combined heat and power system" means the coproduction	489
of electricity and useful thermal energy from the same fuel source	490
designed to achieve thermal-efficiency levels of at least sixty	491
per cent, with at least twenty per cent of the system's total	492
useful energy in the form of thermal energy.	493

(B) For the purposes of this chapter, a retail electric	494
service component shall be deemed a competitive retail electric	495
service if the service component is competitive pursuant to a	496
declaration by a provision of the Revised Code or pursuant to an	497
order of the public utilities commission authorized under division	498
(A) of section 4928.04 of the Revised Code. Otherwise, the service	499
component shall be deemed a noncompetitive retail electric	500
service.	501

Sec. 4928.20.  (A) The legislative authority of a municipal	502
corporation may adopt an ordinance, or the board of township	503
trustees of a township or the board of county commissioners of a	504
county may adopt a resolution, under which, on or after the	505
starting date of competitive retail electric service, it may	506
aggregate in accordance with this section the retail electrical	507
loads located, respectively, within the municipal corporation,	508
township, or unincorporated area of the county and, for that	509
purpose, may enter into service agreements to facilitate for those	510
loads the sale and purchase of electricity. The legislative	511
authority or board also may exercise such authority jointly with	512
any other such legislative authority or board. For customers that	513
are not mercantile customers, an ordinance or resolution under	514
this division shall specify whether the aggregation will occur	515
only with the prior, affirmative consent of each person owning,	516
occupying, controlling, or using an electric load center proposed	517
to be aggregated or will occur automatically for all such persons	518
pursuant to the opt-out requirements of division (D) of this	519
section. The aggregation of mercantile customers shall occur only	520
with the prior, affirmative consent of each such person owning,	521
occupying, controlling, or using an electric load center proposed	522
to be aggregated. Nothing in this division, however, authorizes	523
the aggregation of the retail electric loads of an electric load	524
center, as defined in section 4933.81 of the Revised Code, that is	525
located in the certified territory of a nonprofit electric	526
supplier under sections 4933.81 to 4933.90 of the Revised Code or	527
an electric load center served by transmission or distribution	528
facilities of a municipal electric utility.	529

(B) If an ordinance or resolution adopted under division (A)	530
of this section specifies that aggregation of customers that are	531
not mercantile customers will occur automatically as described in	532
that division, the ordinance or resolution shall direct the board	533
of elections to submit the question of the authority to aggregate	534
to the electors of the respective municipal corporation, township,	535
or unincorporated area of a county at a special election on the	536
day of the next primary or general election in the municipal	537
corporation, township, or county. The legislative authority or	538
board shall certify a copy of the ordinance or resolution to the	539
board of elections not less than ninety days before the day of the	540
special election. No ordinance or resolution adopted under	541
division (A) of this section that provides for an election under	542
this division shall take effect unless approved by a majority of	543
the electors voting upon the ordinance or resolution at the	544
election held pursuant to this division.	545

(C) Upon the applicable requisite authority under divisions	546
(A) and (B) of this section, the legislative authority or board	547
shall develop a plan of operation and governance for the	548
aggregation program so authorized. Before adopting a plan under	549
this division, the legislative authority or board shall hold at	550
least two public hearings on the plan. Before the first hearing,	551
the legislative authority or board shall publish notice of the	552
hearings once a week for two consecutive weeks in a newspaper of	553
general circulation in the jurisdiction or as provided in section	554
7.16 of the Revised Code. The notice shall summarize the plan and	555
state the date, time, and location of each hearing.	556

(D) No legislative authority or board, pursuant to an	557
ordinance or resolution under divisions (A) and (B) of this	558
section that provides for automatic aggregation of customers that	559
are not mercantile customers as described in division (A) of this	560
section, shall aggregate the electrical load of any electric load	561
center located within its jurisdiction unless it in advance	562
clearly discloses to the person owning, occupying, controlling, or	563
using the load center that the person will be enrolled	564
automatically in the aggregation program and will remain so	565
enrolled unless the person affirmatively elects by a stated	566
procedure not to be so enrolled. The disclosure shall state	567
prominently the rates, charges, and other terms and conditions of	568
enrollment. The stated procedure shall allow any person enrolled	569
in the aggregation program the opportunity to opt out of the	570
program every three years, without paying a switching fee. Any	571
such person that opts out before the commencement of the	572
aggregation program pursuant to the stated procedure shall default	573
to the standard service offer provided under section 4928.14 or	574
division (D) of section 4928.35 of the Revised Code until the	575
person chooses an alternative supplier.	576

(E)(1) With respect to a governmental aggregation for a	577
municipal corporation that is authorized pursuant to divisions (A)	578
to (D) of this section, resolutions may be proposed by initiative	579
or referendum petitions in accordance with sections 731.28 to	580
731.41 of the Revised Code.	581

(2) With respect to a governmental aggregation for a township	582
or the unincorporated area of a county, which aggregation is	583
authorized pursuant to divisions (A) to (D) of this section,	584
resolutions may be proposed by initiative or referendum petitions	585
in accordance with sections 731.28 to 731.40 of the Revised Code,	586
except that:	587

(a) The petitions shall be filed, respectively, with the	588
township fiscal officer or the board of county commissioners, who	589
shall perform those duties imposed under those sections upon the	590
city auditor or village clerk.	591

(b) The petitions shall contain the signatures of not less	592
than ten per cent of the total number of electors in,	593
respectively, the township or the unincorporated area of the	594
county who voted for the office of governor at the preceding	595
general election for that office in that area.	596

(F) A governmental aggregator under division (A) of this	597
section is not a public utility engaging in the wholesale purchase	598
and resale of electricity, and provision of the aggregated service	599
is not a wholesale utility transaction. A governmental aggregator	600
shall be subject to supervision and regulation by the public	601
utilities commission only to the extent of any competitive retail	602
electric service it provides and commission authority under this	603
chapter.	604

(G) This section does not apply in the case of a municipal	605
corporation that supplies such aggregated service to electric load	606
centers to which its municipal electric utility also supplies a	607
noncompetitive retail electric service through transmission or	608
distribution facilities the utility singly or jointly owns or	609
operates.	610

(H) A governmental aggregator shall not include in its	611
aggregation the accounts of any of the following:	612

(1) A customer that has opted out of the aggregation;

613

(2) A customer in contract with a certified electric services	614
company;	615

(3) A customer that has a special contract with an electric	616
distribution utility;	617

(4) A customer that is not located within the governmental	618
aggregator's governmental boundaries;	619

(5) Subject to division (C) of section 4928.21 of the Revised	620
Code, a customer who appears on the "do not aggregate" list	621
maintained under that section.	622

(I) Customers that are part of a governmental aggregation	623
under this section shall be responsible only for such portion of a	624
surcharge under section 4928.144 of the Revised Code that is	625
proportionate to the benefits, as determined by the commission,	626
that electric load centers within the jurisdiction of the	627
governmental aggregation as a group receive. The proportionate	628
surcharge so established shall apply to each customer of the	629
governmental aggregation while the customer is part of that	630
aggregation. If a customer ceases being such a customer, the	631
otherwise applicable surcharge shall apply. Nothing in this	632
section shall result in less than full recovery by an electric	633
distribution utility of any surcharge authorized under section	634
4928.144 of the Revised Code. Nothing in this section shall result	635
in less than the full and timely imposition, charging, collection,	636
and adjustment by an electric distribution utility, its assignee,	637
or any collection agent, of the phase-in-recovery charges	638
authorized pursuant to a final financing order issued pursuant to	639
sections 4928.23 to 4928.2318 of the Revised Code.	640

(J) On behalf of the customers that are part of a	641
governmental aggregation under this section and by filing written	642
notice with the public utilities commission, the legislative	643
authority that formed or is forming that governmental aggregation	644
may elect not to receive standby service within the meaning of	645
division (B)(2)(d) of section 4928.143 of the Revised Code from an	646
electric distribution utility in whose certified territory the	647
governmental aggregation is located and that operates under an	648
approved electric security plan under that section. Upon the	649
filing of that notice, the electric distribution utility shall not	650
charge any such customer to whom competitive retail electric	651
generation service is provided by another supplier under the	652
governmental aggregation for the standby service. Any such	653
consumer that returns to the utility for competitive retail	654
electric service shall pay the market price of power incurred by	655
the utility to serve that consumer plus any amount attributable to	656
the utility's cost of compliance with the alternativerenewable	657
energy resource provisions of section 4928.64 of the Revised Code	658
to serve the consumer. Such market price shall include, but not be	659
limited to, capacity and energy charges; all charges associated	660
with the provision of that power supply through the regional	661
transmission organization, including, but not limited to,	662
transmission, ancillary services, congestion, and settlement and	663
administrative charges; and all other costs incurred by the	664
utility that are associated with the procurement, provision, and	665
administration of that power supply, as such costs may be approved	666
by the commission. The period of time during which the market	667
price and alternativerenewable energy resource amount shall be so	668
assessed on the consumer shall be from the time the consumer so	669
returns to the electric distribution utility until the expiration	670
of the electric security plan. However, if that period of time is	671
expected to be more than two years, the commission may reduce the	672
time period to a period of not less than two years.	673

(K) The commission shall adopt rules to encourage and promote	674
large-scale governmental aggregation in this state. For that	675
purpose, the commission shall conduct an immediate review of any	676
rules it has adopted for the purpose of this section that are in	677
effect on the effective date of the amendment of this section by	678
S.B. 221 of the 127th general assembly, July 31, 2008. Further,	679
within the context of an electric security plan under section	680
4928.143 of the Revised Code, the commission shall consider the	681
effect on large-scale governmental aggregation of any	682
nonbypassable generation charges, however collected, that would be	683
established under that plan, except any nonbypassable generation	684
charges that relate to any cost incurred by the electric	685
distribution utility, the deferral of which has been authorized by	686
the commission prior to the effective date of the amendment of	687
this section by S.B. 221 of the 127th general assembly, July 31,	688
2008.	689

Sec. 4928.64. (A)(1) As used in sections 4928.64 and 4928.65	690
of the Revised Codethis section, "alternativequalifying	691
renewable energy resource" means an advanced energy resource ora	692
renewable energy resource, as defined in section 4928.01 of the	693
Revised Code that has a placed-in-service date of January 1, 1998,	694
or after; a renewable energy resource created on or after January	695
1, 1998, by the modification or retrofit of any facility placed in	696
service prior to January 1, 1998; or a mercantile customer-sited	697
advanced energy resource or renewable energy resource, whether new	698
or existing, that the mercantile customer commits for integration	699
into the electric distribution utility's demand-response, energy	700
efficiency, or peak demand reduction programs as provided under	701
division (A)(2)(c) of section 4928.66 of the Revised Code,	702
including, but not limited to, any of the following:	703

(a) A resource that has the effect of improving the	704
relationship between real and reactive power;	705

(b) A resource that makes efficient use of waste heat or	706
other thermal capabilities owned or controlled by a mercantile	707
customer;	708

(c) Storage technology that allows a mercantile customer more	709
flexibility to modify its demand or load and usage	710
characteristics;	711

(d) Electric generation equipment owned or controlled by a	712
mercantile customer that uses an advanced energy resource ora	713
renewable energy resource;	714

(e) Any advanced energy resource or renewable energy resource	715
of the mercantile customer that can be utilized effectively as	716
part of any advanced energy resource plan of an electric	717
distribution utility and would otherwise qualify as an alternative	718
energy resource if it were utilized directly by an electric	719
distribution utility.	720

(2) For the purpose of this section and as it considers	721
appropriate, the public utilities commission may classify any new	722
technology as such an advanced energy resource or a qualifying	723
renewable energy resource.	724

(B)(1) By 20252027 and thereafter, an electric distribution	725
utility shall provide from alternativequalifying renewable energy	726
resources, including, at its discretion, alternativequalifying	727
renewable energy resources obtained pursuant to an electricity	728
supply contract, a portion of the electricity supply required for	729
its standard service offer under section 4928.141 of the Revised	730
Code, and an electric services company shall provide a portion of	731
its electricity supply for retail consumers in this state from	732
alternativequalifying renewable energy resources, including, at	733
its discretion, alternativequalifying renewable energy resources	734
obtained pursuant to an electricity supply contract. That portion	735
shall equal twenty-fivetwelve and one-half per cent of the total	736
number of kilowatt hours of electricity sold by the subject	737
utility or company to any and all retail electric consumers whose	738
electric load centers are served by that utility and are located	739
within the utility's certified territory or, in the case of an	740
electric services company, are served by the company and are	741
located within this state. However, nothing in this section	742
precludes a utility or company from providing a greater	743
percentage. The baseline for a utility's or company's compliance	744
with the alternativerenewable energy resource requirements of	745
this section shall be the average of such total kilowatt hours it	746
sold in the preceding three calendar years, except that the	747
commission may reduce a utility's or company's baseline to adjust	748
for new economic growth in the utility's certified territory or,	749
in the case of an electric services company, in the company's	750
service area in this state.	751

Of the alternative energy resources implemented by the	752
subject utility or company by 2025 and thereafter:	753

(1) Half may be generated from advanced energy resources;

754

(2) At least halfThe portion required under division (B)(1)	755
of this section shall be generated from renewable energy	756
resources, including one-half per cent from solar energy	757
resources, in accordance with the following benchmarks:	758

By end of year	Renewable energy resources	Solar energy resources		759
2009	0.25%	0.004%		760
2010	0.50%	0.010%		761
2011	1%	0.030%		762
2012	1.5%	0.060%		763
2013	2%	0.090%		764
2014	2.5%	0.12%		765
2015	3.5 2.5%	0.15 0.12%		766
2016	4.5 2.5%	0.18 0.12%		767
2017	5.5 3.5%	0.22 0.15%		768
2018	6.5 4.5%	0.26 0.18%		769
2019	7.5 5.5%	0.3 0.22%		770
2020	8.5 6.5%	0.34 0.26%		771
2021	9.5 7.5%	0.38 0.3%		772
2022	10.5 8.5%	0.42 0.34%		773
2023	11.5 9.5%	0.46 0.38%		774
2024 and each calendar year thereafter	12.5 10.5%	0.5% 0.42%		775
2025	11.5%	0.46%		776
2026 and each calendar year thereafter	12.5%	0.5%.		777

(3) At least one-half of theThe qualifying renewable energy	778
resources implemented by the utility or company shall be met	779
througheither:	780

(a) Through facilities located in this state; the remainder	781
shall be met withor	782

(b) With resources that can be shown to be deliverable into	783
this state.	784

(C)(1) The commission annually shall review an electric	785
distribution utility's or electric services company's compliance	786
with the most recent applicable benchmark under division (B)(2) of	787
this section and, in the course of that review, shall identify any	788
undercompliance or noncompliance of the utility or company that it	789
determines is weather-related, related to equipment or resource	790
shortages for advanced energy orqualifying renewable energy	791
resources as applicable, or is otherwise outside the utility's or	792
company's control.	793

(2) Subject to the cost cap provisions of division (C)(3) of	794
this section, if the commission determines, after notice and	795
opportunity for hearing, and based upon its findings in that	796
review regarding avoidable undercompliance or noncompliance, but	797
subject to division (C)(4) of this section, that the utility or	798
company has failed to comply with any such benchmark, the	799
commission shall impose a renewable energy compliance payment on	800
the utility or company.	801

(a) The compliance payment pertaining to the solar energy	802
resource benchmarks under division (B)(2) of this section shall be	803
an amount per megawatt hour of undercompliance or noncompliance in	804
the period under review, starting at fouras follows:	805

(i) Three hundred fifty dollars for 2009, four2014, 2015,	806
and 2016;	807

(ii) Two hundred fifty dollars for 20102017 and 2011, and	808
similarly2018;	809

(iii) Two hundred dollars for 2019 and 2020;

810

(iv) Similarly reduced every two years thereafter through	811
20242026 by fifty dollars, to a minimum of fifty dollars.	812

(b) The compliance payment pertaining to the renewable energy	813
resource benchmarks under division (B)(2) of this section shall	814
equal the number of additional renewable energy credits that the	815
electric distribution utility or electric services company would	816
have needed to comply with the applicable benchmark in the period	817
under review times an amount that shall begin at forty-five	818
dollars and shall be adjusted annually by the commission to	819
reflect any change in the consumer price index as defined in	820
section 101.27 of the Revised Code, but shall not be less than	821
forty-five dollars.	822

(c) The compliance payment shall not be passed through by the	823
electric distribution utility or electric services company to	824
consumers. The compliance payment shall be remitted to the	825
commission, for deposit to the credit of the advanced energy fund	826
created under section 4928.61 of the Revised Code. Payment of the	827
compliance payment shall be subject to such collection and	828
enforcement procedures as apply to the collection of a forfeiture	829
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code.	830

(3) An electric distribution utility or an electric services	831
company need not comply with a benchmark under division (B)(1) or	832
(2) of this section to the extent that its reasonably expected	833
cost of that compliance exceeds its reasonably expected cost of	834
otherwise producing or acquiring the requisite electricity by	835
three per cent or more. The cost of compliance shall be calculated	836
as though any exemption from taxes and assessments had not been	837
granted under section 5727.75 of the Revised Code.	838

(4)(a) An electric distribution utility or electric services	839
company may request the commission to make a force majeure	840
determination pursuant to this division regarding all or part of	841
the utility's or company's compliance with any minimum benchmark	842
under division (B)(2) of this section during the period of review	843
occurring pursuant to division (C)(2) of this section. The	844
commission may require the electric distribution utility or	845
electric services company to make solicitations for renewable	846
energy resource credits as part of its default service before the	847
utility's or company's request of force majeure under this	848
division can be made.	849

(b) Within ninety days after the filing of a request by an	850
electric distribution utility or electric services company under	851
division (C)(4)(a) of this section, the commission shall determine	852
if qualifying renewable energy resources are reasonably available	853
in the marketplace in sufficient quantities for the utility or	854
company to comply with the subject minimum benchmark during the	855
review period. In making this determination, the commission shall	856
consider whether the electric distribution utility or electric	857
services company has made a good faith effort to acquire	858
sufficient qualifying renewable energy or, as applicable, solar	859
energy resources to so comply, including, but not limited to, by	860
banking or seeking renewable energy resource credits or by seeking	861
the resources through long-term contracts. Additionally, the	862
commission shall consider the availability of qualifying	863
renewable energy or solar energy resources in this state and other	864
jurisdictions in the PJM interconnection regional transmission	865
organization, L.L.C., or its successor and the midwest	866
midcontinent independent system operator or its successor.	867

(c) If, pursuant to division (C)(4)(b) of this section, the	868
commission determines that qualifying renewable energy or solar	869
energy resources are not reasonably available to permit the	870
electric distribution utility or electric services company to	871
comply, during the period of review, with the subject minimum	872
benchmark prescribed under division (B)(2) of this section, the	873
commission shall modify that compliance obligation of the utility	874
or company as it determines appropriate to accommodate the	875
finding. Commission modification shall not automatically reduce	876
the obligation for the electric distribution utility's or electric	877
services company's compliance in subsequent years. If it modifies	878
the electric distribution utility or electric services company	879
obligation under division (C)(4)(c) of this section, the	880
commission may require the utility or company, if sufficient	881
renewable energy resource credits exist in the marketplace, to	882
acquire additional renewable energy resource credits in subsequent	883
years equivalent to the utility's or company's modified obligation	884
under division (C)(4)(c) of this section.	885

(5) The commission shall establish a process to provide for	886
at least an annual review of the alternativerenewable energy	887
resource market in this state and in the service territories of	888
the regional transmission organizations that manage transmission	889
systems located in this state. The commission shall use the	890
results of this study to identify any needed changes to the amount	891
of the renewable energy compliance payment specified under	892
divisions (C)(2)(a) and (b) of this section. Specifically, the	893
commission may increase the amount to ensure that payment of	894
compliance payments is not used to achieve compliance with this	895
section in lieu of actually acquiring or realizing energy derived	896
from qualifying renewable energy resources. However, if the	897
commission finds that the amount of the compliance payment should	898
be otherwise changed, the commission shall present this finding to	899
the general assembly for legislative enactment.	900

(D)(1) The commission annually shall submit to the general	901
assembly in accordance with section 101.68 of the Revised Code a	902
report describing all of the following:	903

(a)(1) The compliance of electric distribution utilities and	904
electric services companies with division (B) of this section;	905

(b)(2) The average annual cost of renewable energy credits	906
purchased by utilities and companies for the year covered in the	907
report;	908

(c)(3) Any strategy for utility and company compliance or for	909
encouraging the use of alternativequalifying renewable energy	910
resources in supplying this state's electricity needs in a manner	911
that considers available technology, costs, job creation, and	912
economic impacts.	913

The commission shall begin providing the information	914
described in division (D)(1)(b)(2) of this section in each report	915
submitted after the effective date of the amendment of this	916
section by S.B. 315 of the 129th general assemblySeptember 10,	917
2012. The commission shall allow and consider public comments on	918
the report prior to its submission to the general assembly.	919
Nothing in the report shall be binding on any person, including	920
any utility or company for the purpose of its compliance with any	921
benchmark under division (B) of this section, or the enforcement	922
of that provision under division (C) of this section.	923

(2) The governor, in consultation with the commission	924
chairperson, shall appoint an alternative energy advisory	925
committee. The committee shall examine available technology for	926
and related timetables, goals, and costs of the alternative energy	927
resource requirements under division (B) of this section and shall	928
submit to the commission a semiannual report of its	929
recommendations.	930

(E) All costs incurred by an electric distribution utility in	931
complying with the requirements of this section shall be	932
bypassable by any consumer that has exercised choice of supplier	933
under section 4928.03 of the Revised Code.	934

Sec. 4928.641. (A) If an electric distribution utility has	935
executed a contract before April 1, 2014, to procure renewable	936
energy resources and there are ongoing costs associated with that	937
contract that are being recovered from customers through a	938
bypassable charge as of the effective date of S.B. 310 of the	939
130th general assembly, that cost recovery shall continue on a	940
bypassable basis until the costs associated with that contract are	941
fully recovered.	942

(B) Division (A) of this section applies only to costs	943
associated with the original term of a contract described in that	944
division and entered into before April 1, 2014. This section does	945
not permit recovery of costs associated with an extension of such	946
a contract. This section does not permit recovery of costs	947
associated with an amendment of such a contract if that amendment	948
was made on or after April 1, 2014.	949

Sec. 4928.642.  Every contract to procure renewable energy	950
resources or renewable energy credits entered into by an electric	951
distribution utility or an electric services company on or after	952
the effective date of S.B. 310 of the 130th general assembly shall	953
contain a change-of-law provision. Such a provision shall provide	954
that the parties to the contract are released from their	955
obligations under the contract if there is a change in the	956
renewable energy resource requirements, governed by section	957
4928.64 of the Revised Code.	958

Sec. 4928.65.        Sec. 4928.645. (A) An electric distribution utility	959
or electric services company may use, for the purpose of complying	960
with the requirements under divisions (B)(1) and (2) of section	961
4928.64 of the Revised Code, renewable energy credits any time in	962
the five calendar years following the date of their purchase or	963
acquisition from any entity, including, but not limited to, athe	964
following:	965

(1) A mercantile customer or an;

966

(2) An owner or operator of a hydroelectric generating	967
facility that is located at a dam on a river, or on any water	968
discharged to a river, that is within or bordering this state or	969
within or bordering an adjoining state, for the purpose of	970
complying with the renewable energy and solar energy resource	971
requirements of division (B)(2) of section 4928.64 of the Revised	972
Codeor that produces energy that is deliverable into the regional	973
transmission organization;	974

(3) A seller of compressed natural gas that has been produced	975
from biologically derived methane gas, provided that the seller	976
may only provide renewable energy credits for metered amounts of	977
gas. The	978

(B)(1) The public utilities commission shall adopt rules	979
specifying that one unit of credit shall equal one megawatt hour	980
of electricity derived from renewable energy resources, except	981
that, for a generating facility of seventy-five megawatts or	982
greater that is situated within this state and has committed by	983
December 31, 2009, to modify or retrofit its generating unit or	984
units to enable the facility to generate principally from biomass	985
energy by June 30, 2013, each megawatt hour of electricity	986
generated principally from that biomass energy shall equal, in	987
units of credit, the product obtained by multiplying the actual	988
percentage of biomass feedstock heat input used to generate such	989
megawatt hour by the quotient obtained by dividing the then	990
existing unit dollar amount used to determine a renewable energy	991
compliance payment as provided under division (C)(2)(b) of section	992
4928.64 of the Revised Code by the then existing market value of	993
one renewable energy credit, but such megawatt hour shall not	994
equal less than one unit of credit. Renewable energy resources do	995
not have to be converted to electricity in order to be eligible to	996
receive renewable energy credits. The rules shall specify that,	997
for purposes of converting the quantity of energy derived from	998
biologically derived methane gas to an electricity equivalent, one	999
megawatt hour equals 3,412,142 British thermal units.	1000

(2) The rules also shall provide for this state a system of	1001
registering renewable energy credits by specifying which of any	1002
generally available registries shall be used for that purpose and	1003
not by creating a registry. That selected system of registering	1004
renewable energy credits shall allow a hydroelectric generating	1005
facility to be eligible for obtaining renewable energy credits and	1006
shall allow customer-sited projects or actions the broadest	1007
opportunities to be eligible for obtaining renewable energy	1008
credits.	1009

Sec. 4928.65.  (A) Not later than January 1, 2015, the public	1010
utilities commission shall adopt rules governing the disclosure of	1011
the costs to customers of the renewable energy resource, energy	1012
efficiency savings, and peak demand reduction requirements of	1013
sections 4928.64 and 4928.66 of the Revised Code. The rules shall	1014
include both of the following requirements:	1015

(1) That every electric distribution utility list, on all	1016
customer bills sent by the utility, including utility consolidated	1017
bills that include both electric distribution utility and electric	1018
services company charges, the individual customer cost of the	1019
utility's compliance with all of the following for the applicable	1020
billing period:	1021

(a) The renewable energy resource requirements under section	1022
4928.64 of the Revised Code, subject to division (B) of this	1023
section;	1024

(b) The energy efficiency savings requirements under section	1025
4928.66 of the Revised Code;	1026

(c) The peak demand reduction requirements under section	1027
4928.66 of the Revised Code.	1028

(2) That every electric services company list, on all	1029
customer bills sent by the company, the individual customer cost,	1030
subject to division (B) of this section, of the company's	1031
compliance with the renewable energy resource requirements under	1032
section 4928.64 of the Revised Code for the applicable billing	1033
period.	1034

(B)(1) For purposes of division (A)(1)(a) of this section,	1035
the cost of compliance with the renewable energy resource	1036
requirements shall be calculated by multiplying the individual	1037
customer's monthly usage by the combined weighted average of	1038
renewable-energy-credit costs, including	1039
solar-renewable-energy-credit costs, paid by all electric	1040
distribution utilities, as listed in the commission's most	1041
recently available alternative energy portfolio standard report.	1042

(2) For purposes of division (A)(2) of this section, the cost	1043
of compliance with the renewable energy resource requirements	1044
shall be calculated by multiplying the individual customer's	1045
monthly usage by the combined weighted average of	1046
renewable-energy-credit costs, including	1047
solar-renewable-energy-credit costs, paid by all electric services	1048
companies, as listed in the commission's most recently available	1049
alternative energy portfolio standard report.	1050

(C) The costs required to be listed under division (A)(1) of	1051
this section shall be listed on each customer's monthly bill as	1052
three distinct line items. The cost required to be listed under	1053
division (A)(2) of this section shall be listed on each customer's	1054
monthly bill as a distinct line item.	1055

Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric	1056
distribution utility shall implement energy efficiency programs	1057
that achieve energy savings equivalent to at least three-tenths of	1058
one per cent of the total, annual average, and normalized	1059
kilowatt-hour sales of the electric distribution utility during	1060
the preceding three calendar years to customers in this state. An	1061
energy efficiency program may include a combined heat and power	1062
system placed into service or retrofitted on or after the	1063
effective date of the amendment of this section by S.B. 315 of the	1064
129th general assembly, September 10, 2012, or a waste energy	1065
recovery system placed into service or retrofitted on or after the	1066
same dateSeptember 10, 2012, except that a waste energy recovery	1067
system described in division (A)(38)(b) of section 4928.01 of the	1068
Revised Code may be included only if it was placed into service	1069
between January 1, 2002, and December 31, 2004. For a waste energy	1070
recovery or combined heat and power system, the savings shall be	1071
as estimated by the public utilities commission. The savings	1072
requirement, using such a three-year average, shall increase to an	1073
additional five-tenths of one per cent in 2010, seven-tenths of	1074
one per cent in 2011, eight-tenths of one per cent in 2012,	1075
nine-tenths of one per cent in 2013, and one per cent fromin 2014	1076
to. In 2015 and 2016, an electric distribution utility shall	1077
achieve energy savings equal to the result of subtracting the	1078
cumulative energy savings achieved since 2009 from the product of	1079
multiplying the baseline for energy savings, described in division	1080
(A)(2)(a) of this section, by four and two-tenths of one per cent.	1081
If the result is zero or less for the year for which the	1082
calculation is being made, the utility shall not be required to	1083
achieve additional energy savings for that year, but may achieve	1084
additional energy savings for that year. Thereafter, the annual	1085
savings requirements shall be, for years 2017, 2018, 2019, and	1086
2020, one per cent of the baseline, and two per cent each year	1087
thereafter, achieving a cumulative, annual energy savings in	1088
excess of twenty-two per cent by the end of 20252027. For	1089
purposes of a waste energy recovery or combined heat and power	1090
system, an electric distribution utility shall not apply more than	1091
the total annual percentage of the electric distribution utility's	1092
industrial-customer load, relative to the electric distribution	1093
utility's total load, to the annual energy savings requirement.	1094

(b) Beginning in 2009, an electric distribution utility shall	1095
implement peak demand reduction programs designed to achieve a one	1096
per cent reduction in peak demand in 2009 and an additional	1097
seventy-five hundredths of one per cent reduction each year	1098
through 20182014. In 20182015 and 2016, the standing committees	1099
in the house of representatives and the senate primarily dealing	1100
with energy issues shall make recommendations to the general	1101
assembly regarding futurean electric distribution utility shall	1102
achieve a reduction in peak demand equal to the result of	1103
subtracting the cumulative peak demand reductions achieved since	1104
2009 from the product of multiplying the baseline for peak demand	1105
reduction, described in division (A)(2)(a) of this section, by	1106
four and seventy-five hundredths of one per cent. If the result is	1107
zero or less for the year for which the calculation is being made,	1108
the utility shall not be required to achieve an additional	1109
reduction in peak demand for that year, but may achieve an	1110
additional reduction in peak demand for that year. In 2017 and	1111
each year thereafter through 2020, the utility shall achieve an	1112
additional seventy-five hundredths of one per cent reduction in	1113
peak demand reduction targets.	1114

(2) For the purposes of divisions (A)(1)(a) and (b) of this	1115
section:	1116

(a) The baseline for energy savings under division (A)(1)(a)	1117
of this section shall be the average of the total kilowatt hours	1118
the electric distribution utility sold in the preceding three	1119
calendar years, and the. The baseline for a peak demand reduction	1120
under division (A)(1)(b) of this section shall be the average peak	1121
demand on the utility in the preceding three calendar years,	1122
except that the commission may reduce either baseline to adjust	1123
for new economic growth in the utility's certified territory.	1124
Neither baseline shall include the load and usage of any of the	1125
following customers:	1126

(i) Beginning January 1, 2017, a customer for which a	1127
reasonable arrangement has been approved under section 4905.31 of	1128
the Revised Code;	1129

(ii) A customer that has opted out of the utility's portfolio	1130
plan under section 4928.6611 of the Revised Code;	1131

(iii) A customer that has opted out of the utility's	1132
portfolio plan under Section 8 of S.B. 310 of the 130th general	1133
assembly.	1134

(b) The commission may amend the benchmarks set forth in	1135
division (A)(1)(a) or (b) of this section if, after application by	1136
the electric distribution utility, the commission determines that	1137
the amendment is necessary because the utility cannot reasonably	1138
achieve the benchmarks due to regulatory, economic, or	1139
technological reasons beyond its reasonable control.	1140

(c) Compliance with divisions (A)(1)(a) and (b) of this	1141
section shall be measured by including the effects of all	1142
demand-response programs for mercantile customers of the subject	1143
electric distribution utility, all waste energy recovery systems	1144
and all combined heat and power systems, and all such mercantile	1145
customer-sited energy efficiency, including waste energy recovery	1146
and combined heat and power, and peak demand reduction programs,	1147
adjusted upward by the appropriate loss factors. Any mechanism	1148
designed to recover the cost of energy efficiency, including waste	1149
energy recovery and combined heat and power, and peak demand	1150
reduction programs under divisions (A)(1)(a) and (b) of this	1151
section may exempt mercantile customers that commit their	1152
demand-response or other customer-sited capabilities, whether	1153
existing or new, for integration into the electric distribution	1154
utility's demand-response, energy efficiency, including waste	1155
energy recovery and combined heat and power, or peak demand	1156
reduction programs, if the commission determines that that	1157
exemption reasonably encourages such customers to commit those	1158
capabilities to those programs. If a mercantile customer makes	1159
such existing or new demand-response, energy efficiency, including	1160
waste energy recovery and combined heat and power, or peak demand	1161
reduction capability available to an electric distribution utility	1162
pursuant to division (A)(2)(c) of this section, the electric	1163
utility's baseline under division (A)(2)(a) of this section shall	1164
be adjusted to exclude the effects of all such demand-response,	1165
energy efficiency, including waste energy recovery and combined	1166
heat and power, or peak demand reduction programs that may have	1167
existed during the period used to establish the baseline. The	1168
baseline also shall be normalized for changes in numbers of	1169
customers, sales, weather, peak demand, and other appropriate	1170
factors so that the compliance measurement is not unduly	1171
influenced by factors outside the control of the electric	1172
distribution utility.	1173

(d)(i) Programs implemented by a utility may include	1174
demand-responsethe following:	1175

(I) Demand-response programs grid;

1176

(II) Smart grid investment programs, provided that such	1177
programs are demonstrated to be cost-beneficial, customer-sited;	1178

(III) Customer-sited programs, including waste energy	1179
recovery and combined heat and power systems, and transmission;	1180

(IV) Transmission and distribution infrastructure	1181
improvements that reduce line losses.;	1182

(V) Energy efficiency savings and peak demand reduction that	1183
are achieved, in whole or in part, as a result of funding provided	1184
from the universal service fund established by section 4928.51 of	1185
the Revised Code to benefit low-income customers through programs	1186
that include, but are not limited to, energy audits, the	1187
installation of energy efficiency insulation, appliances, and	1188
windows, and other weatherization measures. No energy efficiency	1189
or peak demand reduction achieved under division (A)(2)(d)(i)(V)	1190
of this section shall qualify for shared savings.	1191

(ii) Division (A)(2)(c) of this section shall be applied to	1192
include facilitating efforts by a mercantile customer or group of	1193
those customers to offer customer-sited demand-response, energy	1194
efficiency, including waste energy recovery and combined heat and	1195
power, or peak demand reduction capabilities to the electric	1196
distribution utility as part of a reasonable arrangement submitted	1197
to the commission pursuant to section 4905.31 of the Revised Code.	1198

(e) No programs or improvements described in division	1199
(A)(2)(d) of this section shall conflict with any statewide	1200
building code adopted by the board of building standards.	1201

(B) In accordance with rules it shall adopt, the public	1202
utilities commission shall produce and docket at the commission an	1203
annual report containing the results of its verification of the	1204
annual levels of energy efficiency and of peak demand reductions	1205
achieved by each electric distribution utility pursuant to	1206
division (A) of this section. A copy of the report shall be	1207
provided to the consumers' counsel.	1208

(C) If the commission determines, after notice and	1209
opportunity for hearing and based upon its report under division	1210
(B) of this section, that an electric distribution utility has	1211
failed to comply with an energy efficiency or peak demand	1212
reduction requirement of division (A) of this section, the	1213
commission shall assess a forfeiture on the utility as provided	1214
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code,	1215
either in the amount, per day per undercompliance or	1216
noncompliance, relative to the period of the report, equal to that	1217
prescribed for noncompliances under section 4905.54 of the Revised	1218
Code, or in an amount equal to the then existing market value of	1219
one renewable energy credit per megawatt hour of undercompliance	1220
or noncompliance. Revenue from any forfeiture assessed under this	1221
division shall be deposited to the credit of the advanced energy	1222
fund created under section 4928.61 of the Revised Code.	1223

(D) The commission may establish rules regarding the content	1224
of an application by an electric distribution utility for	1225
commission approval of a revenue decoupling mechanism under this	1226
division. Such an application shall not be considered an	1227
application to increase rates and may be included as part of a	1228
proposal to establish, continue, or expand energy efficiency or	1229
conservation programs. The commission by order may approve an	1230
application under this division if it determines both that the	1231
revenue decoupling mechanism provides for the recovery of revenue	1232
that otherwise may be forgone by the utility as a result of or in	1233
connection with the implementation by the electric distribution	1234
utility of any energy efficiency or energy conservation programs	1235
and reasonably aligns the interests of the utility and of its	1236
customers in favor of those programs.	1237

(E) The commission additionally shall adopt rules that	1238
require an electric distribution utility to provide a customer	1239
upon request with two years' consumption data in an accessible	1240
form.	1241

Sec. 4928.662.  For the purpose of measuring and determining	1242
compliance with the energy efficiency and peak demand reduction	1243
requirements under section 4928.66 of the Revised Code, the public	1244
utilities commission shall count and recognize compliance as	1245
follows:	1246

(A) Energy efficiency savings and peak demand reduction	1247
achieved through actions taken by customers or through electric	1248
distribution utility programs that comply with federal standards	1249
for either or both energy efficiency and peak demand reduction	1250
requirements, including resources associated with such savings or	1251
reduction that are recognized as capacity resources by the	1252
regional transmission organization operating in Ohio in compliance	1253
with section 4928.12 of the Revised Code, shall count toward	1254
compliance with the energy efficiency and peak demand reduction	1255
requirements.	1256

(B) Energy efficiency savings and peak demand reduction	1257
achieved on and after the effective date of S.B. 310 of the 130th	1258
general assembly shall be measured on the higher of an as found or	1259
deemed basis, except that, solely at the option of the electric	1260
distribution utility, such savings and reduction achieved since	1261
2006 may also be measured using this method. For new construction,	1262
the energy efficiency savings and peak demand reduction shall be	1263
counted based on 2008 federal standards, provided that when new	1264
construction replaces an existing facility, the difference in	1265
energy consumed, energy intensity, and peak demand between the new	1266
and replaced facility shall be counted toward meeting the energy	1267
efficiency and peak demand reduction requirements.	1268

(C) The commission shall count both the energy efficiency	1269
savings and peak demand reduction on an annualized basis.	1270

(D) The commission shall count both the energy efficiency	1271
savings and peak demand reduction on a gross savings basis.	1272

(E) The commission shall count energy efficiency savings and	1273
peak demand reductions associated with transmission and	1274
distribution infrastructure improvements that reduce line losses.	1275

(F) The commission shall recognize and count all energy	1276
efficiency savings and peak demand reduction that are physically	1277
located within the certified territory of the electric	1278
distribution utility and are bid into the regional transmission	1279
organization operating in Ohio in compliance with section 4928.12	1280
of the Revised Code capacity auctions as energy efficiency	1281
resources and demand response resources toward the peak demand	1282
reduction requirements. No energy efficiency or peak demand	1283
reduction achieved under division (F) of this section shall	1284
qualify for shared savings.	1285

(G) Energy efficiency savings and peak demand reduction	1286
amounts approved by the commission shall continue to be counted	1287
toward achieving the energy efficiency and peak demand reduction	1288
requirements as long as the requirements remain in effect.	1289

(H) Any energy efficiency savings or peak demand reduction	1290
amount achieved in excess of the requirements may, at the	1291
discretion of the electric distribution utility, be banked and	1292
applied toward achieving the energy efficiency or peak demand	1293
reduction requirements in future years.	1294

Sec. 4928.6610.  As used in sections 4928.6611 to 4928.6616	1295
of the Revised Code:	1296

(A) "Customer" means any retail customer of an electric	1297
distribution utility to which either of the following applies:	1298

(1) The retail customer receives service above the primary	1299
voltage level as determined by the utility's tariff	1300
classification.	1301

(2) The retail customer is a commercial or industrial	1302
customer to which both of the following apply:	1303

(a) The retail customer receives electricity through a meter	1304
of an end user or through more than one meter at a single location	1305
in a quantity that exceeds forty-five million kilowatt hours of	1306
electricity for the preceding calendar year.	1307

(b) The retail customer has made a written request for	1308
registration as a self-assessing purchaser pursuant to section	1309
5727.81 of the Revised Code.	1310

(B) "Portfolio plan" means the comprehensive energy	1311
efficiency and peak-demand reduction program portfolio plan	1312
required under rules adopted by the public utilities commission	1313
and codified in Chapter 4901:1-39 of the Administrative Code or	1314
hereafter recodified or amended.	1315

Sec. 4928.6611.  Beginning January 1, 2017, a customer of an	1316
electric distribution utility may opt out of the opportunity and	1317
ability to obtain direct benefits from the utility's portfolio	1318
plan. Such an opt out shall extend to all of the customer's	1319
accounts, irrespective of the size or service voltage level that	1320
are associated with the activities performed by the customer and	1321
that are located on or adjacent to the customer's premises.	1322

Sec. 4928.6612.  Any customer electing to opt out under	1323
section 4928.6611 of the Revised Code shall do so by providing a	1324
verified written notice of intent to opt out to the electric	1325
distribution utility from which it receives service and submitting	1326
a complete copy of the opt-out notice to the secretary of the	1327
public utilities commission.	1328

The notice provided to the utility shall include all of the	1329
following:	1330

(A) A statement indicating that the customer has elected to	1331
opt out;	1332

(B) The effective date of the election to opt out;

1333

(C) The account number for each customer account to which the	1334
opt out shall apply;	1335

(D) The physical location of the customer's load center;

1336

(E) The date upon which the customer established, or plans to	1337
establish a process and implement, cost-effective measures to	1338
improve its energy efficiency savings and peak demand reductions.	1339

Sec. 4928.6613.  Upon a customer's election to opt out under	1340
section 4928.6611 of the Revised Code and commencing on the	1341
effective date of the election to opt out, no account properly	1342
identified in the customer's verified notice under division (C) of	1343
section 4928.6612 of the Revised Code shall be subject to any cost	1344
recovery mechanism under section 4928.66 of the Revised Code or	1345
eligible to participate in, or directly benefit from, programs	1346
arising from electric distribution utility portfolio plans	1347
approved by the public utilities commission.	1348

Sec. 4928.6614.  (A) A customer subsequently may opt in to an	1349
electric distribution utility's portfolio plan after a previous	1350
election to opt out under section 4928.6611 of the Revised Code if	1351
both of the following apply:	1352

(1) The customer has previously opted out for a period of at	1353
least three consecutive calendar years.	1354

(2) The customer gives twelve months' advance notice of its	1355
intent to opt in to the public utilities commission and the	1356
electric distribution utility from which it receives service.	1357

(B) A customer that opts in under this section shall maintain	1358
its opt-in status for three consecutive calendar years before	1359
being eligible subsequently to exercise its right to opt out after	1360
giving the utility twelve months' advance notice.	1361

Sec. 4928.6615.  Any customer electing to opt in under	1362
section 4928.6614 of the Revised Code shall do so by providing a	1363
written notice of intent to opt in to the electric distribution	1364
utility from which it receives service and submitting a complete	1365
copy of the opt-in notice to the secretary of the public utilities	1366
commission. The notice shall include all of the following:	1367

(A) A statement indicating that the customer has elected to	1368
opt in;	1369

(B) The effective date of the election to opt in;

1370

(C) The account number for each customer account to which the	1371
opt in shall apply;	1372

(D) The physical location of the customer's load center.

1373

Sec. 4928.6616.  (A) Upon a customer's election to opt out	1374
under section 4928.6611 of the Revised Code, the customer shall	1375
prepare and submit a report to the staff of the public utilities	1376
commission. The report shall, for the period that the opt out is	1377
in effect, summarize the energy efficiency and peak demand	1378
reduction measures implemented by the customer and identify the	1379
cumulative energy efficiency savings and peak demand reductions	1380
achieved. The report shall be verified by the customer and filed	1381
at least once every three years following the date of the	1382
customer's election to opt out.	1383

(B) Upon submission of a report, the staff of the commission	1384
may request the customer to provide additional information on the	1385
measures adopted by the customer and the amount of energy	1386
efficiency savings and peak demand reductions achieved during the	1387
period covered by the report.	1388

(C) All information contained in a report submitted under	1389
this section and any customer responses to requests for additional	1390
information shall be deemed to be confidential, proprietary, and a	1391
trade secret. No such information or response shall be publicly	1392
divulged without written authorization by the customer or used for	1393
any purpose other than to identify the measures adopted by the	1394
customer and the quantity of energy efficiency savings and peak	1395
demand reductions achieved by the customer.	1396

Section 2.  That existing sections 3706.25, 4928.01, 4928.20,	1397
4928.64, 4928.65, and 4928.66 of the Revised Code are hereby	1398
repealed.	1399

Section 3. It is the intent of the General Assembly to ensure	1400
that customers in Ohio have access to affordable energy. It is the	1401
intent of the General Assembly to incorporate as many forms of	1402
inexpensive, reliable energy sources in the state of Ohio as	1403
possible. It is also the intent of the General Assembly to get a	1404
better understanding of how energy mandates impact jobs and the	1405
economy in Ohio and to minimize government mandates. Because the	1406
energy mandates in current law may be unrealistic and	1407
unattainable, it is the intent of the General Assembly to review	1408
all energy resources as part of its efforts to address energy	1409
pricing issues.	1410

Therefore, it is the intent of the General Assembly to enact	1411
legislation in the future, after taking into account the	1412
recommendations of the Energy Mandates Study Committee, that will	1413
reduce the mandates in sections 4928.64 and 4928.66 of the Revised	1414
Code and provide greater transparency to electric customers on the	1415
costs of future energy mandates, if there are to be any.	1416

Section 4. (A) There is hereby created the Energy Mandates	1417
Study Committee to study Ohio's renewable energy, energy	1418
efficiency, and peak demand reduction mandates. The Committee	1419
shall consist of the following members:	1420

(1) Six members of the House of Representatives appointed by	1421
the Speaker of the House of Representatives, with not more than	1422
four members from the same political party;	1423

(2) Six members of the Senate appointed by the President of	1424
the Senate, with not more than four members from the same	1425
political party;	1426

(3) The chairperson of the Public Utilities Commission, as an	1427
exoffcio, nonvoting member.	1428

(B) The Speaker of the House of Representatives and the	1429
President of the Senate shall each appoint one member of the	1430
Committee to serve as a cochairperson of the Committee. Any	1431
vacancies that occur on the Committee shall be filled in the same	1432
manner as the original appointment.	1433

(C) Not later than September 30, 2015, the Committee shall	1434
submit a report of its findings to the House of Representatives	1435
and the Senate in accordance with division (B) of section 101.68	1436
of the Revised Code. The Committee shall cease to exist on October	1437
1, 2015. The report shall include, at a minimum, all of the	1438
following:	1439

(1) A cost-benefit analysis of the renewable energy, energy	1440
efficiency, and peak demand reduction mandates, including the	1441
projected costs on electric customers if the mandates were to	1442
remain at the percentage levels required under sections 4928.64	1443
and 4928.66 of the Revised Code, as amended by this act;	1444

(2) A recommendation of the best, evidence-based standard for	1445
reviewing the mandates in the future, including an examination of	1446
readily available technology to attain such a standard;	1447

(3) The potential benefits of an opt-in system for the	1448
mandates, in contrast to an opt-out system for the mandates, and a	1449
recommendation as to whether an opt-in system should apply to all	1450
electric customers, whether an opt-out system should apply to only	1451
certain customers, or whether a hybrid of these two systems is	1452
recommended;	1453

(4) A review of the risk of increased grid congestion due to	1454
the anticipated retirement of coal-fired generation capacity and	1455
other factors; the ability of distributed generation, including	1456
combined heat and power and waste energy recovery, to reduce	1457
electric grid congestion; and the potential benefit to all energy	1458
consumers resulting from reduced grid congestion;	1459

(5) An analysis of whether there are alternatives for the	1460
development of advanced energy resources as that term is defined	1461
in section 4928.01 of the Revised Code.	1462

Section 5. As used in Sections 6, 7, 8, 9, 10, and 11 of this	1463
act:	1464

"Customer" and "portfolio plan" have the same meanings as in	1465
section 4928.6610 of the Revised Code.	1466

"Electric distribution utility" has the same meaning as in	1467
section 4928.01 of the Revised Code.	1468

Section 6. (A) If an electric distribution utility has a	1469
portfolio plan that is in effect on the effective date of this	1470
section, the utility shall do either of the following, at its sole	1471
discretion:	1472

(1) Continue to implement the portfolio plan with no	1473
amendments to the plan, for the duration that the Public Utilities	1474
Commission originally approved, subject to divisions (D) and (E)	1475
of this section;	1476

(2) Seek an amendment of the portfolio plan under division	1477
(B) of this section.	1478

(B)(1) An electric distribution utility that seeks to amend	1479
its portfolio plan under division (A)(2) of this section shall	1480
file an application with the Commission to amend the plan not	1481
later than thirty days after the effective date of this section.	1482
The Commission shall review the application in accordance with its	1483
rules as if the application were for a new portfolio plan. The	1484
Commission shall review and approve, or modify and approve, the	1485
application not later than sixty days after the date that the	1486
application is filed. Any portfolio plan amended under this	1487
division shall take effect on January 1, 2015, and expire on	1488
December 31, 2016. If the Commission fails to review and approve,	1489
or modify and approve, the application on or before January 1,	1490
2015, the plan shall be deemed approved as amended in the	1491
application and shall take effect on January 1, 2015, and expire	1492
on December 31, 2016.	1493

(2) Section 4928.66 of the Revised Code, as amended by this	1494
act, shall apply to an electric distribution utility that applies	1495
to amend its portfolio plan under division (B) of this section.	1496

(C) If an electric distribution utility fails to file an	1497
application to amend its portfolio plan under division (B) of this	1498
section within the required thirty-day period, the electric	1499
distribution utility shall proceed in accordance with division	1500
(A)(1) of this section.	1501

(D) If an electric distribution utility implements its	1502
portfolio plan under division (A)(1) of this section for the	1503
plan's original duration and if the plan expires before December	1504
31, 2016, the Commission shall automatically extend the plan	1505
through December 31, 2016, with no amendments to the plan.	1506

(E)(1) The provisions of section 4928.66 of the Revised Code,	1507
as it existed prior to the effective date of this section, shall	1508
apply to an electric distribution utility that has a portfolio	1509
plan that is implemented under division (A)(1) of this section for	1510
either of the following time periods:	1511

(a) The plan's original duration;

1512

(b) The plan's original duration and then, until December 31,	1513
2016, if the plan is extended under division (D) of this section.	1514

(2) Beginning January 1, 2017, the provisions of section	1515
4928.66 of the Revised Code as amended by this act shall apply to	1516
the electric distribution utility.	1517

Section 7. (A) The Public Utilities Commission shall neither	1518
review nor approve an application for a portfolio plan if the	1519
application is pending on the effective date of this section.	1520

(B) Prior to January 1, 2017, the Commission shall not take	1521
any action with regard to any portfolio plan or application	1522
regarding a portfolio plan, except those actions expressly	1523
authorized or required by Section 6 of this act and actions	1524
necessary to administer the implementation of existing portfolio	1525
plans.	1526

Section 8. Beginning January 1, 2015, a customer of an	1527
electric distribution utility may opt out of the opportunity and	1528
ability to obtain direct benefits from the utility's portfolio	1529
plan that is amended under division (B) of Section 6 of this act.	1530
The opt out shall apply only to the amended plan. The opt out	1531
shall extend to all of the customer's accounts, irrespective of	1532
the size or service voltage level that are associated with the	1533
activities performed by the customer and that are located on or	1534
adjacent to the customer's premises.	1535

Section 9. Any customer electing to opt out under Section 8	1536
of this act shall do so by providing a verified written notice of	1537
intent to opt out to the electric distribution utility from which	1538
it receives service and submitting a complete copy of the opt-out	1539
notice to the Secretary of the Public Utilities Commission.	1540

The notice provided to the utility shall include all of the	1541
following:	1542

(A) A statement indicating that the customer has elected to	1543
opt out;	1544

(B) The effective date of the election to opt out;

1545

(C) The account number for each customer account to which the	1546
opt out shall apply;	1547

(D) The physical location of the customer's load center;

1548

(E) The date upon which the customer established, or plans to	1549
establish a process and implement, cost-effective measures to	1550
improve its energy efficiency savings and peak demand reductions.	1551

Section 10. Upon a customer's election to opt out under	1552
Section 8 of this act and commencing on the effective date of the	1553
election to opt out, no account properly identified in the	1554
customer's verified notice under division (C) of Section 9 of this	1555
act shall be subject to any cost recovery mechanism under section	1556
4928.66 of the Revised Code, as amended by this act, for the	1557
duration of the amended portfolio plan or eligible to participate	1558
in, or directly benefit from, programs arising from the amended	1559
portfolio plan.	1560

Section 11. (A) Upon a customer's election to opt out under	1561
Section 8 of this act, the customer shall prepare and submit a	1562
report to the staff of the Public Utilities Commission. The report	1563
shall, for the period that the opt out is in effect, summarize the	1564
energy efficiency and peak demand reduction measures implemented	1565
by the customer and identify the cumulative energy efficiency	1566
savings and peak demand reductions achieved. The report shall be	1567
verified by the customer and filed not later than January 1, 2017.	1568

(B) Upon submission of the report, the staff of the	1569
Commission may request the customer to provide additional	1570
information on the measures adopted by the customer and the amount	1571
of energy efficiency savings and peak demand reductions achieved	1572
during the period covered by the report.	1573

(C) All information contained in a report submitted under	1574
this section and any customer responses to requests for additional	1575
information shall be deemed to be confidential, proprietary, and a	1576
trade secret. No such information or response shall be publicly	1577
divulged without written authorization by the customer or used for	1578
any purpose other than to identify the measures adopted by the	1579
customer and the quantity of energy efficiency savings and peak	1580
demand reductions achieved by the customer.	1581