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 House

130th General Assembly Regular Session 2013-2014

Sub. S. B. No. 310

Senator Balderson 

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

Representatives Stautberg, Adams, J., Buchy, Hill, Huffman, Maag, Retherford, Roegner, Ruhl, Terhar, Wachtmann Speaker Batchelder 

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A BILL

To amend sections 3706.25, 4928.01, 4928.20, 4928.53,

1

4928.64, 4928.65, and 4928.66, to amend, for the

2

purpose of adopting a new section number as

3

indicated in parentheses, section 4928.65

4

(4928.645), and to enact new section 4928.65 and

5

sections 4928.112, 4928.641, 4928.643, 4928.644,

6

4928.662, 4928.6610, 4928.6611, 4928.6612,

7

4928.6613, 4928.6614, 4928.6615, and 4928.6616 of

8

the Revised Code to make changes to the renewable

9

energy, energy efficiency, and peak demand

10

reduction requirements, to prohibit the imposition

11

of a waiting period before enrolling an eligible

12

customer in the percentage of income payment plan,

13

and to create a study committee.

14

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

Section 1.  That sections 3706.25, 4928.01, 4928.20, 4928.53,	15
4928.64, 4928.65, and 4928.66 be amended, section 4928.65	16
(4928.645) be amended for the purpose of adopting a new section	17
number as indicated in parentheses, and new section 4928.65 and	18
sections 4928.112, 4928.641, 4928.643, 4928.644, 4928.662,	19
4928.6610, 4928.6611, 4928.6612, 4928.6613, 4928.6614, 4928.6615,	20
and 4928.6616 of the Revised Code be enacted to read as follows:	21

Sec. 3706.25. As used in sections 3706.25 to 3706.30 of the	22
Revised Code:	23

(A) "Advanced energy project" means any technologies,	24
products, activities, or management practices or strategies that	25
facilitate the generation or use of electricity or energy and that	26
reduce or support the reduction of energy consumption or support	27
the production of clean, renewable energy for industrial,	28
distribution, commercial, institutional, governmental, research,	29
not-for-profit, or residential energy users including, but not	30
limited to, advanced energy resources and renewable energy	31
resources. "Advanced energy project" includes any project	32
described in division (A), (B), or (C) of section 4928.621 of the	33
Revised Code.	34

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

35

(1) Any method or any modification or replacement of any	36
property, process, device, structure, or equipment that increases	37
the generation output of an electric generating facility to the	38
extent such efficiency is achieved without additional carbon	39
dioxide emissions by that facility;	40

(2) Any distributed generation system consisting of customer	41
cogeneration technology, primarily to meet the energy needs of the	42
customer's facilities;	43

(3) Advanced nuclear energy technology consisting of	44
generation III technology as defined by the nuclear regulatory	45
commission; other, later technology; or significant improvements	46
to existing facilities;	47

(4) Any fuel cell used in the generation of electricity,	48
including, but not limited to, a proton exchange membrane fuel	49
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	50
solid oxide fuel cell;	51

(5) Advanced solid waste or construction and demolition	52
debris conversion technology, including, but not limited to,	53
advanced stoker technology, and advanced fluidized bed	54
gasification technology, that results in measurable greenhouse gas	55
emissions reductions as calculated pursuant to the United States	56
environmental protection agency's waste reduction model (WARM).	57

(C) "Air contaminant source" has the same meaning as in	58
section 3704.01 of the Revised Code.	59

(D) "Cogeneration technology" means technology that produces	60
electricity and useful thermal output simultaneously.	61

(E) "Renewable energy resource" means solar photovoltaic or	62
solar thermal energy, wind energy, power produced by a	63
hydroelectric facility, power produced by a run-of-the-river	64
hydroelectric facility placed in service on or after January 1,	65
1980, that is located within this state, relies upon the Ohio	66
river, and operates, or is rated to operate, at an aggregate	67
capacity of forty or more megawatts, geothermal energy, fuel	68
derived from solid wastes, as defined in section 3734.01 of the	69
Revised Code, through fractionation, biological decomposition, or	70
other process that does not principally involve combustion,	71
biomass energy, energy produced by cogeneration technology that is	72
placed into service on or before December 31, 2015, and for which	73
more than ninety per cent of the total annual energy input is from	74
combustion of a waste or byproduct gas from an air contaminant	75
source in this state, which source has been in operation since on	76
or before January 1, 1985, provided that the cogeneration	77
technology is a part of a facility located in a county having a	78
population of more than three hundred sixty-five thousand but less	79
than three hundred seventy thousand according to the most recent	80
federal decennial census, biologically derived methane gas, heat	81
captured from a generator of electricity, boiler, or heat	82
exchanger fueled by biologically derived methane gas, or energy	83
derived from nontreated by-products of the pulping process or wood	84
manufacturing process, including bark, wood chips, sawdust, and	85
lignin in spent pulping liquors. "Renewable energy resource"	86
includes, but is not limited to, any fuel cell used in the	87
generation of electricity, including, but not limited to, a proton	88
exchange membrane fuel cell, phosphoric acid fuel cell, molten	89
carbonate fuel cell, or solid oxide fuel cell; wind turbine	90
located in the state's territorial waters of Lake Erie; methane	91
gas emitted from an abandoned coal mine; storage facility that	92
will promote the better utilization of a renewable energy resource	93
that primarily generates off peak; or distributed generation	94
system used by a customer to generate electricity from any such	95
energy. As used in this division, "hydroelectric facility" means a	96
hydroelectric generating facility that is located at a dam on a	97
river, or on any water discharged to a river, that is within or	98
bordering this state or within or bordering an adjoining state and	99
meets all of the following standards:	100

(1) The facility provides for river flows that are not	101
detrimental for fish, wildlife, and water quality, including	102
seasonal flow fluctuations as defined by the applicable licensing	103
agency for the facility.	104

(2) The facility demonstrates that it complies with the water	105
quality standards of this state, which compliance may consist of	106
certification under Section 401 of the "Clean Water Act of 1977,"	107
91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates that it has	108
not contributed to a finding by this state that the river has	109
impaired water quality under Section 303(d) of the "Clean Water	110
Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	111

(3) The facility complies with mandatory prescriptions	112
regarding fish passage as required by the federal energy	113
regulatory commission license issued for the project, regarding	114
fish protection for riverine, anadromous, and catadromous fish.	115

(4) The facility complies with the recommendations of the	116
Ohio environmental protection agency and with the terms of its	117
federal energy regulatory commission license regarding watershed	118
protection, mitigation, or enhancement, to the extent of each	119
agency's respective jurisdiction over the facility.	120

(5) The facility complies with provisions of the "Endangered	121
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	122
amended.	123

(6) The facility does not harm cultural resources of the	124
area. This can be shown through compliance with the terms of its	125
federal energy regulatory commission license or, if the facility	126
is not regulated by that commission, through development of a plan	127
approved by the Ohio historic preservation office, to the extent	128
it has jurisdiction over the facility.	129

(7) The facility complies with the terms of its federal	130
energy regulatory commission license or exemption that are related	131
to recreational access, accommodation, and facilities or, if the	132
facility is not regulated by that commission, the facility	133
complies with similar requirements as are recommended by resource	134
agencies, to the extent they have jurisdiction over the facility;	135
and the facility provides access to water to the public without	136
fee or charge.	137

(8) The facility is not recommended for removal by any	138
federal agency or agency of any state, to the extent the	139
particular agency has jurisdiction over the facility.	140

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

141

(1) "Ancillary service" means any function necessary to the	142
provision of electric transmission or distribution service to a	143
retail customer and includes, but is not limited to, scheduling,	144
system control, and dispatch services; reactive supply from	145
generation resources and voltage control service; reactive supply	146
from transmission resources service; regulation service; frequency	147
response service; energy imbalance service; operating	148
reserve-spinning reserve service; operating reserve-supplemental	149
reserve service; load following; back-up supply service;	150
real-power loss replacement service; dynamic scheduling; system	151
black start capability; and network stability service.	152

(2) "Billing and collection agent" means a fully independent	153
agent, not affiliated with or otherwise controlled by an electric	154
utility, electric services company, electric cooperative, or	155
governmental aggregator subject to certification under section	156
4928.08 of the Revised Code, to the extent that the agent is under	157
contract with such utility, company, cooperative, or aggregator	158
solely to provide billing and collection for retail electric	159
service on behalf of the utility company, cooperative, or	160
aggregator.	161

(3) "Certified territory" means the certified territory	162
established for an electric supplier under sections 4933.81 to	163
4933.90 of the Revised Code.	164

(4) "Competitive retail electric service" means a component	165
of retail electric service that is competitive as provided under	166
division (B) of this section.	167

(5) "Electric cooperative" means a not-for-profit electric	168
light company that both is or has been financed in whole or in	169
part under the "Rural Electrification Act of 1936," 49 Stat. 1363,	170
7 U.S.C. 901, and owns or operates facilities in this state to	171
generate, transmit, or distribute electricity, or a not-for-profit	172
successor of such company.	173

(6) "Electric distribution utility" means an electric utility	174
that supplies at least retail electric distribution service.	175

(7) "Electric light company" has the same meaning as in	176
section 4905.03 of the Revised Code and includes an electric	177
services company, but excludes any self-generator to the extent	178
that it consumes electricity it so produces, sells that	179
electricity for resale, or obtains electricity from a generating	180
facility it hosts on its premises.	181

(8) "Electric load center" has the same meaning as in section	182
4933.81 of the Revised Code.	183

(9) "Electric services company" means an electric light	184
company that is engaged on a for-profit or not-for-profit basis in	185
the business of supplying or arranging for the supply of only a	186
competitive retail electric service in this state. "Electric	187
services company" includes a power marketer, power broker,	188
aggregator, or independent power producer but excludes an electric	189
cooperative, municipal electric utility, governmental aggregator,	190
or billing and collection agent.	191

(10) "Electric supplier" has the same meaning as in section	192
4933.81 of the Revised Code.	193

(11) "Electric utility" means an electric light company that	194
has a certified territory and is engaged on a for-profit basis	195
either in the business of supplying a noncompetitive retail	196
electric service in this state or in the businesses of supplying	197
both a noncompetitive and a competitive retail electric service in	198
this state. "Electric utility" excludes a municipal electric	199
utility or a billing and collection agent.	200

(12) "Firm electric service" means electric service other	201
than nonfirm electric service.	202

(13) "Governmental aggregator" means a legislative authority	203
of a municipal corporation, a board of township trustees, or a	204
board of county commissioners acting as an aggregator for the	205
provision of a competitive retail electric service under authority	206
conferred under section 4928.20 of the Revised Code.	207

(14) A person acts "knowingly," regardless of the person's	208
purpose, when the person is aware that the person's conduct will	209
probably cause a certain result or will probably be of a certain	210
nature. A person has knowledge of circumstances when the person is	211
aware that such circumstances probably exist.	212

(15) "Level of funding for low-income customer energy	213
efficiency programs provided through electric utility rates" means	214
the level of funds specifically included in an electric utility's	215
rates on October 5, 1999, pursuant to an order of the public	216
utilities commission issued under Chapter 4905. or 4909. of the	217
Revised Code and in effect on October 4, 1999, for the purpose of	218
improving the energy efficiency of housing for the utility's	219
low-income customers. The term excludes the level of any such	220
funds committed to a specific nonprofit organization or	221
organizations pursuant to a stipulation or contract.	222

(16) "Low-income customer assistance programs" means the	223
percentage of income payment plan program, the home energy	224
assistance program, the home weatherization assistance program,	225
and the targeted energy efficiency and weatherization program.	226

(17) "Market development period" for an electric utility	227
means the period of time beginning on the starting date of	228
competitive retail electric service and ending on the applicable	229
date for that utility as specified in section 4928.40 of the	230
Revised Code, irrespective of whether the utility applies to	231
receive transition revenues under this chapter.	232

(18) "Market power" means the ability to impose on customers	233
a sustained price for a product or service above the price that	234
would prevail in a competitive market.	235

(19) "Mercantile customer" means a commercial or industrial	236
customer if the electricity consumed is for nonresidential use and	237
the customer consumes more than seven hundred thousand kilowatt	238
hours per year or is part of a national account involving multiple	239
facilities in one or more states.	240

(20) "Municipal electric utility" means a municipal	241
corporation that owns or operates facilities to generate,	242
transmit, or distribute electricity.	243

(21) "Noncompetitive retail electric service" means a	244
component of retail electric service that is noncompetitive as	245
provided under division (B) of this section.	246

(22) "Nonfirm electric service" means electric service	247
provided pursuant to a schedule filed under section 4905.30 of the	248
Revised Code or pursuant to an arrangement under section 4905.31	249
of the Revised Code, which schedule or arrangement includes	250
conditions that may require the customer to curtail or interrupt	251
electric usage during nonemergency circumstances upon notification	252
by an electric utility.	253

(23) "Percentage of income payment plan arrears" means funds	254
eligible for collection through the percentage of income payment	255
plan rider, but uncollected as of July 1, 2000.	256

(24) "Person" has the same meaning as in section 1.59 of the	257
Revised Code.	258

(25) "Advanced energy project" means any technologies,	259
products, activities, or management practices or strategies that	260
facilitate the generation or use of electricity or energy and that	261
reduce or support the reduction of energy consumption or support	262
the production of clean, renewable energy for industrial,	263
distribution, commercial, institutional, governmental, research,	264
not-for-profit, or residential energy users, including, but not	265
limited to, advanced energy resources and renewable energy	266
resources. "Advanced energy project" also includes any project	267
described in division (A), (B), or (C) of section 4928.621 of the	268
Revised Code.	269

(26) "Regulatory assets" means the unamortized net regulatory	270
assets that are capitalized or deferred on the regulatory books of	271
the electric utility, pursuant to an order or practice of the	272
public utilities commission or pursuant to generally accepted	273
accounting principles as a result of a prior commission	274
rate-making decision, and that would otherwise have been charged	275
to expense as incurred or would not have been capitalized or	276
otherwise deferred for future regulatory consideration absent	277
commission action. "Regulatory assets" includes, but is not	278
limited to, all deferred demand-side management costs; all	279
deferred percentage of income payment plan arrears;	280
post-in-service capitalized charges and assets recognized in	281
connection with statement of financial accounting standards no.	282
109 (receivables from customers for income taxes); future nuclear	283
decommissioning costs and fuel disposal costs as those costs have	284
been determined by the commission in the electric utility's most	285
recent rate or accounting application proceeding addressing such	286
costs; the undepreciated costs of safety and radiation control	287
equipment on nuclear generating plants owned or leased by an	288
electric utility; and fuel costs currently deferred pursuant to	289
the terms of one or more settlement agreements approved by the	290
commission.	291

(27) "Retail electric service" means any service involved in	292
supplying or arranging for the supply of electricity to ultimate	293
consumers in this state, from the point of generation to the point	294
of consumption. For the purposes of this chapter, retail electric	295
service includes one or more of the following "service	296
components": generation service, aggregation service, power	297
marketing service, power brokerage service, transmission service,	298
distribution service, ancillary service, metering service, and	299
billing and collection service.	300

(28) "Starting date of competitive retail electric service"	301
means January 1, 2001.	302

(29) "Customer-generator" means a user of a net metering	303
system.	304

(30) "Net metering" means measuring the difference in an	305
applicable billing period between the electricity supplied by an	306
electric service provider and the electricity generated by a	307
customer-generator that is fed back to the electric service	308
provider.	309

(31) "Net metering system" means a facility for the	310
production of electrical energy that does all of the following:	311

(a) Uses as its fuel either solar, wind, biomass, landfill	312
gas, or hydropower, or uses a microturbine or a fuel cell;	313

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

314

(c) Operates in parallel with the electric utility's	315
transmission and distribution facilities;	316

(d) Is intended primarily to offset part or all of the	317
customer-generator's requirements for electricity.	318

(32) "Self-generator" means an entity in this state that owns	319
or hosts on its premises an electric generation facility that	320
produces electricity primarily for the owner's consumption and	321
that may provide any such excess electricity to another entity,	322
whether the facility is installed or operated by the owner or by	323
an agent under a contract.	324

(33) "Rate plan" means the standard service offer in effect	325
on the effective date of the amendment of this section by S.B. 221	326
of the 127th general assembly, July 31, 2008.	327

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

328

(a) Any method or any modification or replacement of any	329
property, process, device, structure, or equipment that increases	330
the generation output of an electric generating facility to the	331
extent such efficiency is achieved without additional carbon	332
dioxide emissions by that facility;	333

(b) Any distributed generation system consisting of customer	334
cogeneration technology;	335

(c) Clean coal technology that includes a carbon-based	336
product that is chemically altered before combustion to	337
demonstrate a reduction, as expressed as ash, in emissions of	338
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or	339
sulfur trioxide in accordance with the American society of testing	340
and materials standard D1757A or a reduction of metal oxide	341
emissions in accordance with standard D5142 of that society, or	342
clean coal technology that includes the design capability to	343
control or prevent the emission of carbon dioxide, which design	344
capability the commission shall adopt by rule and shall be based	345
on economically feasible best available technology or, in the	346
absence of a determined best available technology, shall be of the	347
highest level of economically feasible design capability for which	348
there exists generally accepted scientific opinion;	349

(d) Advanced nuclear energy technology consisting of	350
generation III technology as defined by the nuclear regulatory	351
commission; other, later technology; or significant improvements	352
to existing facilities;	353

(e) Any fuel cell used in the generation of electricity,	354
including, but not limited to, a proton exchange membrane fuel	355
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or	356
solid oxide fuel cell;	357

(f) Advanced solid waste or construction and demolition	358
debris conversion technology, including, but not limited to,	359
advanced stoker technology, and advanced fluidized bed	360
gasification technology, that results in measurable greenhouse gas	361
emissions reductions as calculated pursuant to the United States	362
environmental protection agency's waste reduction model (WARM);	363

(g) Demand-side management and any energy efficiency	364
improvement;	365

(h) Any new, retrofitted, refueled, or repowered generating	366
facility located in Ohio, including a simple or combined-cycle	367
natural gas generating facility or a generating facility that uses	368
biomass, coal, modular nuclear, or any other fuel as its input;	369

(i) Any uprated capacity of an existing electric generating	370
facility if the uprated capacity results from the deployment of	371
advanced technology.	372

"Advanced energy resource" does not include a waste energy	373
recovery system that is, or has been, included in an energy	374
efficiency program of an electric distribution utility pursuant to	375
requirements under section 4928.66 of the Revised Code.	376

(35) "Air contaminant source" has the same meaning as in	377
section 3704.01 of the Revised Code.	378

(36) "Cogeneration technology" means technology that produces	379
electricity and useful thermal output simultaneously.	380

(37)(a) "Renewable energy resource" means any of the	381
following:	382

(i) Solar photovoltaic or solar thermal energy;

383

(ii) Wind energy;

384

(iii) Power produced by a hydroelectric facility;

385

(iv) Power produced by a run-of-the-river hydroelectric	386
facility placed in service on or after January 1, 1980, that is	387
located within this state, relies upon the Ohio river, and	388
operates, or is rated to operate, at an aggregate capacity of	389
forty or more megawatts;	390

(v) Geothermal energy;

391

(v)(vi) Fuel derived from solid wastes, as defined in section	392
3734.01 of the Revised Code, through fractionation, biological	393
decomposition, or other process that does not principally involve	394
combustion;	395

(vi)(vii) Biomass energy;

396

(vii)(viii) Energy produced by cogeneration technology that	397
is placed into service on or before December 31, 2015, and for	398
which more than ninety per cent of the total annual energy input	399
is from combustion of a waste or byproduct gas from an air	400
contaminant source in this state, which source has been in	401
operation since on or before January 1, 1985, provided that the	402
cogeneration technology is a part of a facility located in a	403
county having a population of more than three hundred sixty-five	404
thousand but less than three hundred seventy thousand according to	405
the most recent federal decennial census;	406

(viii)(ix) Biologically derived methane gas;

407

(ix)(x) Heat captured from a generator of electricity,	408
boiler, or heat exchanger fueled by biologically derived methane	409
gas;	410

(xi) Energy derived from nontreated by-products of the	411
pulping process or wood manufacturing process, including bark,	412
wood chips, sawdust, and lignin in spent pulping liquors.	413

"Renewable energy resource" includes, but is not limited to,	414
any fuel cell used in the generation of electricity, including,	415
but not limited to, a proton exchange membrane fuel cell,	416
phosphoric acid fuel cell, molten carbonate fuel cell, or solid	417
oxide fuel cell; wind turbine located in the state's territorial	418
waters of Lake Erie; methane gas emitted from an abandoned coal	419
mine; waste energy recovery system placed into service or	420
retrofitted on or after the effective date of the amendment of	421
this section by S.B. 315 of the 129th general assembly, September	422
10, 2012, except that a waste energy recovery system described in	423
division (A)(38)(b) of this section may be included only if it was	424
placed into service between January 1, 2002, and December 31,	425
2004; storage facility that will promote the better utilization of	426
a renewable energy resource; or distributed generation system used	427
by a customer to generate electricity from any such energy.	428

"Renewable energy resource" does not include a waste energy	429
recovery system that is, or was, on or after January 1, 2012,	430
included in an energy efficiency program of an electric	431
distribution utility pursuant to requirements under section	432
4928.66 of the Revised Code.	433

(b) As used in division (A)(37) of this section,	434
"hydroelectric facility" means a hydroelectric generating facility	435
that is located at a dam on a river, or on any water discharged to	436
a river, that is within or bordering this state or within or	437
bordering an adjoining state and meets all of the following	438
standards:	439

(i) The facility provides for river flows that are not	440
detrimental for fish, wildlife, and water quality, including	441
seasonal flow fluctuations as defined by the applicable licensing	442
agency for the facility.	443

(ii) The facility demonstrates that it complies with the	444
water quality standards of this state, which compliance may	445
consist of certification under Section 401 of the "Clean Water Act	446
of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and demonstrates	447
that it has not contributed to a finding by this state that the	448
river has impaired water quality under Section 303(d) of the	449
"Clean Water Act of 1977," 114 Stat. 870, 33 U.S.C. 1313.	450

(iii) The facility complies with mandatory prescriptions	451
regarding fish passage as required by the federal energy	452
regulatory commission license issued for the project, regarding	453
fish protection for riverine, anadromous, and catadromous fish.	454

(iv) The facility complies with the recommendations of the	455
Ohio environmental protection agency and with the terms of its	456
federal energy regulatory commission license regarding watershed	457
protection, mitigation, or enhancement, to the extent of each	458
agency's respective jurisdiction over the facility.	459

(v) The facility complies with provisions of the "Endangered	460
Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 to 1544, as	461
amended.	462

(vi) The facility does not harm cultural resources of the	463
area. This can be shown through compliance with the terms of its	464
federal energy regulatory commission license or, if the facility	465
is not regulated by that commission, through development of a plan	466
approved by the Ohio historic preservation office, to the extent	467
it has jurisdiction over the facility.	468

(vii) The facility complies with the terms of its federal	469
energy regulatory commission license or exemption that are related	470
to recreational access, accommodation, and facilities or, if the	471
facility is not regulated by that commission, the facility	472
complies with similar requirements as are recommended by resource	473
agencies, to the extent they have jurisdiction over the facility;	474
and the facility provides access to water to the public without	475
fee or charge.	476

(viii) The facility is not recommended for removal by any	477
federal agency or agency of any state, to the extent the	478
particular agency has jurisdiction over the facility.	479

(38) "Waste energy recovery system" means either of the	480
following:	481

(a) A facility that generates electricity through the	482
conversion of energy from either of the following:	483

(i) Exhaust heat from engines or manufacturing, industrial,	484
commercial, or institutional sites, except for exhaust heat from a	485
facility whose primary purpose is the generation of electricity;	486

(ii) Reduction of pressure in gas pipelines before gas is	487
distributed through the pipeline, provided that the conversion of	488
energy to electricity is achieved without using additional fossil	489
fuels.	490

(b) A facility at a state institution of higher education as	491
defined in section 3345.011 of the Revised Code that recovers	492
waste heat from electricity-producing engines or combustion	493
turbines and that simultaneously uses the recovered heat to	494
produce steam, provided that the facility was placed into service	495
between January 1, 2002, and December 31, 2004.	496

(39) "Smart grid" means capital improvements to an electric	497
distribution utility's distribution infrastructure that improve	498
reliability, efficiency, resiliency, or reduce energy demand or	499
use, including, but not limited to, advanced metering and	500
automation of system functions.	501

(40) "Combined heat and power system" means the coproduction	502
of electricity and useful thermal energy from the same fuel source	503
designed to achieve thermal-efficiency levels of at least sixty	504
per cent, with at least twenty per cent of the system's total	505
useful energy in the form of thermal energy.	506

(B) For the purposes of this chapter, a retail electric	507
service component shall be deemed a competitive retail electric	508
service if the service component is competitive pursuant to a	509
declaration by a provision of the Revised Code or pursuant to an	510
order of the public utilities commission authorized under division	511
(A) of section 4928.04 of the Revised Code. Otherwise, the service	512
component shall be deemed a noncompetitive retail electric	513
service.	514

Sec. 4928.112.  (A) In the event of an interruption of	515
electric service during a period of emergency or disaster, an	516
electric distribution utility's service restoration plan shall	517
give priority to hospitals that are customers of the electric	518
distribution utility.	519

(B) If requested by a hospital that is its customer, an	520
electric distribution utility shall confer at least biennially	521
with that hospital regarding power quality issues and concerns	522
related to the utility's facilities, including voltage sags,	523
spikes, and harmonic disturbances, in an effort to minimize those	524
events or their impact on the hospital.	525

(C) The public utilities commission shall adopt rules to	526
carry out this section.	527

Sec. 4928.20.  (A) The legislative authority of a municipal	528
corporation may adopt an ordinance, or the board of township	529
trustees of a township or the board of county commissioners of a	530
county may adopt a resolution, under which, on or after the	531
starting date of competitive retail electric service, it may	532
aggregate in accordance with this section the retail electrical	533
loads located, respectively, within the municipal corporation,	534
township, or unincorporated area of the county and, for that	535
purpose, may enter into service agreements to facilitate for those	536
loads the sale and purchase of electricity. The legislative	537
authority or board also may exercise such authority jointly with	538
any other such legislative authority or board. For customers that	539
are not mercantile customers, an ordinance or resolution under	540
this division shall specify whether the aggregation will occur	541
only with the prior, affirmative consent of each person owning,	542
occupying, controlling, or using an electric load center proposed	543
to be aggregated or will occur automatically for all such persons	544
pursuant to the opt-out requirements of division (D) of this	545
section. The aggregation of mercantile customers shall occur only	546
with the prior, affirmative consent of each such person owning,	547
occupying, controlling, or using an electric load center proposed	548
to be aggregated. Nothing in this division, however, authorizes	549
the aggregation of the retail electric loads of an electric load	550
center, as defined in section 4933.81 of the Revised Code, that is	551
located in the certified territory of a nonprofit electric	552
supplier under sections 4933.81 to 4933.90 of the Revised Code or	553
an electric load center served by transmission or distribution	554
facilities of a municipal electric utility.	555

(B) If an ordinance or resolution adopted under division (A)	556
of this section specifies that aggregation of customers that are	557
not mercantile customers will occur automatically as described in	558
that division, the ordinance or resolution shall direct the board	559
of elections to submit the question of the authority to aggregate	560
to the electors of the respective municipal corporation, township,	561
or unincorporated area of a county at a special election on the	562
day of the next primary or general election in the municipal	563
corporation, township, or county. The legislative authority or	564
board shall certify a copy of the ordinance or resolution to the	565
board of elections not less than ninety days before the day of the	566
special election. No ordinance or resolution adopted under	567
division (A) of this section that provides for an election under	568
this division shall take effect unless approved by a majority of	569
the electors voting upon the ordinance or resolution at the	570
election held pursuant to this division.	571

(C) Upon the applicable requisite authority under divisions	572
(A) and (B) of this section, the legislative authority or board	573
shall develop a plan of operation and governance for the	574
aggregation program so authorized. Before adopting a plan under	575
this division, the legislative authority or board shall hold at	576
least two public hearings on the plan. Before the first hearing,	577
the legislative authority or board shall publish notice of the	578
hearings once a week for two consecutive weeks in a newspaper of	579
general circulation in the jurisdiction or as provided in section	580
7.16 of the Revised Code. The notice shall summarize the plan and	581
state the date, time, and location of each hearing.	582

(D) No legislative authority or board, pursuant to an	583
ordinance or resolution under divisions (A) and (B) of this	584
section that provides for automatic aggregation of customers that	585
are not mercantile customers as described in division (A) of this	586
section, shall aggregate the electrical load of any electric load	587
center located within its jurisdiction unless it in advance	588
clearly discloses to the person owning, occupying, controlling, or	589
using the load center that the person will be enrolled	590
automatically in the aggregation program and will remain so	591
enrolled unless the person affirmatively elects by a stated	592
procedure not to be so enrolled. The disclosure shall state	593
prominently the rates, charges, and other terms and conditions of	594
enrollment. The stated procedure shall allow any person enrolled	595
in the aggregation program the opportunity to opt out of the	596
program every three years, without paying a switching fee. Any	597
such person that opts out before the commencement of the	598
aggregation program pursuant to the stated procedure shall default	599
to the standard service offer provided under section 4928.14 or	600
division (D) of section 4928.35 of the Revised Code until the	601
person chooses an alternative supplier.	602

(E)(1) With respect to a governmental aggregation for a	603
municipal corporation that is authorized pursuant to divisions (A)	604
to (D) of this section, resolutions may be proposed by initiative	605
or referendum petitions in accordance with sections 731.28 to	606
731.41 of the Revised Code.	607

(2) With respect to a governmental aggregation for a township	608
or the unincorporated area of a county, which aggregation is	609
authorized pursuant to divisions (A) to (D) of this section,	610
resolutions may be proposed by initiative or referendum petitions	611
in accordance with sections 731.28 to 731.40 of the Revised Code,	612
except that:	613

(a) The petitions shall be filed, respectively, with the	614
township fiscal officer or the board of county commissioners, who	615
shall perform those duties imposed under those sections upon the	616
city auditor or village clerk.	617

(b) The petitions shall contain the signatures of not less	618
than ten per cent of the total number of electors in,	619
respectively, the township or the unincorporated area of the	620
county who voted for the office of governor at the preceding	621
general election for that office in that area.	622

(F) A governmental aggregator under division (A) of this	623
section is not a public utility engaging in the wholesale purchase	624
and resale of electricity, and provision of the aggregated service	625
is not a wholesale utility transaction. A governmental aggregator	626
shall be subject to supervision and regulation by the public	627
utilities commission only to the extent of any competitive retail	628
electric service it provides and commission authority under this	629
chapter.	630

(G) This section does not apply in the case of a municipal	631
corporation that supplies such aggregated service to electric load	632
centers to which its municipal electric utility also supplies a	633
noncompetitive retail electric service through transmission or	634
distribution facilities the utility singly or jointly owns or	635
operates.	636

(H) A governmental aggregator shall not include in its	637
aggregation the accounts of any of the following:	638

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

639

(2) A customer in contract with a certified electric services	640
company;	641

(3) A customer that has a special contract with an electric	642
distribution utility;	643

(4) A customer that is not located within the governmental	644
aggregator's governmental boundaries;	645

(5) Subject to division (C) of section 4928.21 of the Revised	646
Code, a customer who appears on the "do not aggregate" list	647
maintained under that section.	648

(I) Customers that are part of a governmental aggregation	649
under this section shall be responsible only for such portion of a	650
surcharge under section 4928.144 of the Revised Code that is	651
proportionate to the benefits, as determined by the commission,	652
that electric load centers within the jurisdiction of the	653
governmental aggregation as a group receive. The proportionate	654
surcharge so established shall apply to each customer of the	655
governmental aggregation while the customer is part of that	656
aggregation. If a customer ceases being such a customer, the	657
otherwise applicable surcharge shall apply. Nothing in this	658
section shall result in less than full recovery by an electric	659
distribution utility of any surcharge authorized under section	660
4928.144 of the Revised Code. Nothing in this section shall result	661
in less than the full and timely imposition, charging, collection,	662
and adjustment by an electric distribution utility, its assignee,	663
or any collection agent, of the phase-in-recovery charges	664
authorized pursuant to a final financing order issued pursuant to	665
sections 4928.23 to 4928.2318 of the Revised Code.	666

(J) On behalf of the customers that are part of a	667
governmental aggregation under this section and by filing written	668
notice with the public utilities commission, the legislative	669
authority that formed or is forming that governmental aggregation	670
may elect not to receive standby service within the meaning of	671
division (B)(2)(d) of section 4928.143 of the Revised Code from an	672
electric distribution utility in whose certified territory the	673
governmental aggregation is located and that operates under an	674
approved electric security plan under that section. Upon the	675
filing of that notice, the electric distribution utility shall not	676
charge any such customer to whom competitive retail electric	677
generation service is provided by another supplier under the	678
governmental aggregation for the standby service. Any such	679
consumer that returns to the utility for competitive retail	680
electric service shall pay the market price of power incurred by	681
the utility to serve that consumer plus any amount attributable to	682
the utility's cost of compliance with the alternativerenewable	683
energy resource provisions of section 4928.64 of the Revised Code	684
to serve the consumer. Such market price shall include, but not be	685
limited to, capacity and energy charges; all charges associated	686
with the provision of that power supply through the regional	687
transmission organization, including, but not limited to,	688
transmission, ancillary services, congestion, and settlement and	689
administrative charges; and all other costs incurred by the	690
utility that are associated with the procurement, provision, and	691
administration of that power supply, as such costs may be approved	692
by the commission. The period of time during which the market	693
price and alternativerenewable energy resource amount shall be so	694
assessed on the consumer shall be from the time the consumer so	695
returns to the electric distribution utility until the expiration	696
of the electric security plan. However, if that period of time is	697
expected to be more than two years, the commission may reduce the	698
time period to a period of not less than two years.	699

(K) The commission shall adopt rules to encourage and promote	700
large-scale governmental aggregation in this state. For that	701
purpose, the commission shall conduct an immediate review of any	702
rules it has adopted for the purpose of this section that are in	703
effect on the effective date of the amendment of this section by	704
S.B. 221 of the 127th general assembly, July 31, 2008. Further,	705
within the context of an electric security plan under section	706
4928.143 of the Revised Code, the commission shall consider the	707
effect on large-scale governmental aggregation of any	708
nonbypassable generation charges, however collected, that would be	709
established under that plan, except any nonbypassable generation	710
charges that relate to any cost incurred by the electric	711
distribution utility, the deferral of which has been authorized by	712
the commission prior to the effective date of the amendment of	713
this section by S.B. 221 of the 127th general assembly, July 31,	714
2008.	715

Sec. 4928.53.  (A) Beginning July 1, 2000, the director of	716
development is hereby authorized to administer the low-income	717
customer assistance programs. For that purpose, the public	718
utilities commission shall cooperate with and provide such	719
assistance as the director requires for administration of the	720
low-income customer assistance programs. The director shall	721
consolidate the administration of and redesign and coordinate the	722
operations of those programs within the department to provide, to	723
the maximum extent possible, for efficient program administration	724
and a one-stop application and eligibility determination process	725
at the local level for consumers.	726

(B)(1) Not later than March 1, 2000, the director, in	727
accordance with Chapter 119. of the Revised Code, shall adopt	728
rules to carry out sections 4928.51 to 4928.58 of the Revised Code	729
and ensure the effective and efficient administration and	730
operation of the low-income customer assistance programs. The	731
rules shall take effect on the July 1, 2000.	732

(2) The director's authority to adopt rules under this	733
division for the Ohio energy credit program shall be subject to	734
such rule-making authority as is conferred on the director by	735
sections 5117.01 to 5117.12 of the Revised Code, as amended by	736
Sub. S.B. No. 3 of the 123rd general assembly, except that rules	737
initially adopted by the director for the Ohio energy credit	738
program shall incorporate the substance of those sections as they	739
exist on the effective date of this section.	740

(3) The director's authority to adopt rules under this	741
division for the percentage of income payment plan program shall	742
include authority to adopt rules prescribing criteria for customer	743
eligibility and policies regarding payment and crediting	744
arrangements and responsibilities, procedures for verifying	745
customer eligibility, procedures for disbursing public funds to	746
suppliers and otherwise administering funds under the director's	747
jurisdiction, and requirements as to timely remittances of	748
revenues described in division (B) of section 4928.51 of the	749
Revised Code. The rules shall prohibit the imposition of a waiting	750
period before enrolling an eligible customer in the percentage of	751
income payment plan. The director's authority in division (B)(3)	752
of this section excludes authority to prescribe service	753
disconnection and customer billing policies and procedures and to	754
address complaints against suppliers under the percentage of	755
payment plan program, which excluded authority shall be exercised	756
by the public utilities commission, in coordination with the	757
director. Rules adopted by the director under this division for	758
the percentage of income payment plan program shall specify a	759
level of payment responsibility to be borne by an eligible	760
customer based on a percentage of the customer's income. Rules	761
initially adopted by the director for the percentage of income	762
payment plan program shall incorporate the eligibility criteria	763
and payment arrangement and responsibility policies set forth in	764
rule 4901:1-18-04(B) of the Ohio Administrative Code in effect on	765
the effective date of this section.	766

Sec. 4928.64. (A)(1) As used in sections 4928.64 and 4928.65	767
of the Revised Codethis section, "alternativequalifying	768
renewable energy resource" means an advanced energy resource ora	769
renewable energy resource, as defined in section 4928.01 of the	770
Revised Code that has a placed-in-service date ofon or after	771
January 1, 1998, or afterwith respect to any run-of-the-river	772
hydroelectric facility, an in-service date on or after January 1,	773
1980; a renewable energy resource created on or after January 1,	774
1998, by the modification or retrofit of any facility placed in	775
service prior to January 1, 1998; or a mercantile customer-sited	776
advanced energy resource or renewable energy resource, whether new	777
or existing, that the mercantile customer commits for integration	778
into the electric distribution utility's demand-response, energy	779
efficiency, or peak demand reduction programs as provided under	780
division (A)(2)(c) of section 4928.66 of the Revised Code,	781
including, but not limited to, any of the following:	782

(a) A resource that has the effect of improving the	783
relationship between real and reactive power;	784

(b) A resource that makes efficient use of waste heat or	785
other thermal capabilities owned or controlled by a mercantile	786
customer;	787

(c) Storage technology that allows a mercantile customer more	788
flexibility to modify its demand or load and usage	789
characteristics;	790

(d) Electric generation equipment owned or controlled by a	791
mercantile customer that uses an advanced energy resource ora	792
renewable energy resource;	793

(e) Any advanced energy resource or renewable energy resource	794
of the mercantile customer that can be utilized effectively as	795
part of any advanced energy resource plan of an electric	796
distribution utility and would otherwise qualify as an alternative	797
energy resource if it were utilized directly by an electric	798
distribution utility.	799

(2) For the purpose of this section and as it considers	800
appropriate, the public utilities commission may classify any new	801
technology as such an advanced energy resource or a qualifying	802
renewable energy resource.	803

(B)(1) By 20252027 and thereafter, an electric distribution	804
utility shall provide from alternativequalifying renewable energy	805
resources, including, at its discretion, alternativequalifying	806
renewable energy resources obtained pursuant to an electricity	807
supply contract, a portion of the electricity supply required for	808
its standard service offer under section 4928.141 of the Revised	809
Code, and an electric services company shall provide a portion of	810
its electricity supply for retail consumers in this state from	811
alternativequalifying renewable energy resources, including, at	812
its discretion, alternativequalifying renewable energy resources	813
obtained pursuant to an electricity supply contract. That portion	814
shall equal twenty-fivetwelve and one-half per cent of the total	815
number of kilowatt hours of electricity sold by the subject	816
utility or company to any and all retail electric consumers whose	817
electric load centers are served by that utility and are located	818
within the utility's certified territory or, in the case of an	819
electric services company, are served by the company and are	820
located within this state. However, nothing in this section	821
precludes a utility or company from providing a greater	822
percentage. The baseline for a utility's or company's compliance	823
with the alternative energy resource requirements of this section	824
shall be the average of such total kilowatt hours it sold in the	825
preceding three calendar years, except that the commission may	826
reduce a utility's or company's baseline to adjust for new	827
economic growth in the utility's certified territory or, in the	828
case of an electric services company, in the company's service	829
area in this state.	830

Of the alternative energy resources implemented by the	831
subject utility or company by 2025 and thereafter:	832

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

833

(2) At least halfThe portion required under division (B)(1)	834
of this section shall be generated from renewable energy	835
resources, including one-half per cent from solar energy	836
resources, in accordance with the following benchmarks:	837

By end of year	Renewable energy resources	Solar energy resources		838
2009	0.25%	0.004%		839
2010	0.50%	0.010%		840
2011	1%	0.030%		841
2012	1.5%	0.060%		842
2013	2%	0.090%		843
2014	2.5%	0.12%		844
2015	3.5 2.5%	0.15 0.12%		845
2016	4.5 2.5%	0.18 0.12%		846
2017	5.5 3.5%	0.22 0.15%		847
2018	6.5 4.5%	0.26 0.18%		848
2019	7.5 5.5%	0.3 0.22%		849
2020	8.5 6.5%	0.34 0.26%		850
2021	9.5 7.5%	0.38 0.3%		851
2022	10.5 8.5%	0.42 0.34%		852
2023	11.5 9.5%	0.46 0.38%		853
2024 and each calendar year thereafter	12.5 10.5%	0.5 0.42%		854
2025	11.5%	0.46%		855
2026 and each calendar year thereafter	12.5%	0.5%.		856

(3) At least one-half of theThe qualifying renewable energy	857
resources implemented by the utility or company shall be met	858
througheither:	859

(a) Through facilities located in this state; the remainder	860
shall be met withor	861

(b) With resources that can be shown to be deliverable into	862
this state.	863

(C)(1) The commission annually shall review an electric	864
distribution utility's or electric services company's compliance	865
with the most recent applicable benchmark under division (B)(2) of	866
this section and, in the course of that review, shall identify any	867
undercompliance or noncompliance of the utility or company that it	868
determines is weather-related, related to equipment or resource	869
shortages for advanced energy orqualifying renewable energy	870
resources as applicable, or is otherwise outside the utility's or	871
company's control.	872

(2) Subject to the cost cap provisions of division (C)(3) of	873
this section, if the commission determines, after notice and	874
opportunity for hearing, and based upon its findings in that	875
review regarding avoidable undercompliance or noncompliance, but	876
subject to division (C)(4) of this section, that the utility or	877
company has failed to comply with any such benchmark, the	878
commission shall impose a renewable energy compliance payment on	879
the utility or company.	880

(a) The compliance payment pertaining to the solar energy	881
resource benchmarks under division (B)(2) of this section shall be	882
an amount per megawatt hour of undercompliance or noncompliance in	883
the period under review, starting at fouras follows:	884

(i) Three hundred fifty dollars for 2009, four2014, 2015,	885
and 2016;	886

(ii) Two hundred fifty dollars for 20102017 and 2011, and	887
similarly2018;	888

(iii) Two hundred dollars for 2019 and 2020;

889

(iv) Similarly reduced every two years thereafter through	890
20242026 by fifty dollars, to a minimum of fifty dollars.	891

(b) The compliance payment pertaining to the renewable energy	892
resource benchmarks under division (B)(2) of this section shall	893
equal the number of additional renewable energy credits that the	894
electric distribution utility or electric services company would	895
have needed to comply with the applicable benchmark in the period	896
under review times an amount that shall begin at forty-five	897
dollars and shall be adjusted annually by the commission to	898
reflect any change in the consumer price index as defined in	899
section 101.27 of the Revised Code, but shall not be less than	900
forty-five dollars.	901

(c) The compliance payment shall not be passed through by the	902
electric distribution utility or electric services company to	903
consumers. The compliance payment shall be remitted to the	904
commission, for deposit to the credit of the advanced energy fund	905
created under section 4928.61 of the Revised Code. Payment of the	906
compliance payment shall be subject to such collection and	907
enforcement procedures as apply to the collection of a forfeiture	908
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code.	909

(3) An electric distribution utility or an electric services	910
company need not comply with a benchmark under division (B)(1) or	911
(2) of this section to the extent that its reasonably expected	912
cost of that compliance exceeds its reasonably expected cost of	913
otherwise producing or acquiring the requisite electricity by	914
three per cent or more. The cost of compliance shall be calculated	915
as though any exemption from taxes and assessments had not been	916
granted under section 5727.75 of the Revised Code.	917

(4)(a) An electric distribution utility or electric services	918
company may request the commission to make a force majeure	919
determination pursuant to this division regarding all or part of	920
the utility's or company's compliance with any minimum benchmark	921
under division (B)(2) of this section during the period of review	922
occurring pursuant to division (C)(2) of this section. The	923
commission may require the electric distribution utility or	924
electric services company to make solicitations for renewable	925
energy resource credits as part of its default service before the	926
utility's or company's request of force majeure under this	927
division can be made.	928

(b) Within ninety days after the filing of a request by an	929
electric distribution utility or electric services company under	930
division (C)(4)(a) of this section, the commission shall determine	931
if qualifying renewable energy resources are reasonably available	932
in the marketplace in sufficient quantities for the utility or	933
company to comply with the subject minimum benchmark during the	934
review period. In making this determination, the commission shall	935
consider whether the electric distribution utility or electric	936
services company has made a good faith effort to acquire	937
sufficient qualifying renewable energy or, as applicable, solar	938
energy resources to so comply, including, but not limited to, by	939
banking or seeking renewable energy resource credits or by seeking	940
the resources through long-term contracts. Additionally, the	941
commission shall consider the availability of qualifying	942
renewable energy or solar energy resources in this state and other	943
jurisdictions in the PJM interconnection regional transmission	944
organization, L.L.C., or its successor and the midwest	945
midcontinent independent system operator or its successor.	946

(c) If, pursuant to division (C)(4)(b) of this section, the	947
commission determines that qualifying renewable energy or solar	948
energy resources are not reasonably available to permit the	949
electric distribution utility or electric services company to	950
comply, during the period of review, with the subject minimum	951
benchmark prescribed under division (B)(2) of this section, the	952
commission shall modify that compliance obligation of the utility	953
or company as it determines appropriate to accommodate the	954
finding. Commission modification shall not automatically reduce	955
the obligation for the electric distribution utility's or electric	956
services company's compliance in subsequent years. If it modifies	957
the electric distribution utility or electric services company	958
obligation under division (C)(4)(c) of this section, the	959
commission may require the utility or company, if sufficient	960
renewable energy resource credits exist in the marketplace, to	961
acquire additional renewable energy resource credits in subsequent	962
years equivalent to the utility's or company's modified obligation	963
under division (C)(4)(c) of this section.	964

(5) The commission shall establish a process to provide for	965
at least an annual review of the alternativerenewable energy	966
resource market in this state and in the service territories of	967
the regional transmission organizations that manage transmission	968
systems located in this state. The commission shall use the	969
results of this study to identify any needed changes to the amount	970
of the renewable energy compliance payment specified under	971
divisions (C)(2)(a) and (b) of this section. Specifically, the	972
commission may increase the amount to ensure that payment of	973
compliance payments is not used to achieve compliance with this	974
section in lieu of actually acquiring or realizing energy derived	975
from qualifying renewable energy resources. However, if the	976
commission finds that the amount of the compliance payment should	977
be otherwise changed, the commission shall present this finding to	978
the general assembly for legislative enactment.	979

(D)(1) The commission annually shall submit to the general	980
assembly in accordance with section 101.68 of the Revised Code a	981
report describing all of the following:	982

(a)(1) The compliance of electric distribution utilities and	983
electric services companies with division (B) of this section;	984

(b)(2) The average annual cost of renewable energy credits	985
purchased by utilities and companies for the year covered in the	986
report;	987

(c)(3) Any strategy for utility and company compliance or for	988
encouraging the use of alternativequalifying renewable energy	989
resources in supplying this state's electricity needs in a manner	990
that considers available technology, costs, job creation, and	991
economic impacts.	992

The commission shall begin providing the information	993
described in division (D)(1)(b)(2) of this section in each report	994
submitted after the effective date of the amendment of this	995
section by S.B. 315 of the 129th general assemblySeptember 10,	996
2012. The commission shall allow and consider public comments on	997
the report prior to its submission to the general assembly.	998
Nothing in the report shall be binding on any person, including	999
any utility or company for the purpose of its compliance with any	1000
benchmark under division (B) of this section, or the enforcement	1001
of that provision under division (C) of this section.	1002

(2) The governor, in consultation with the commission	1003
chairperson, shall appoint an alternative energy advisory	1004
committee. The committee shall examine available technology for	1005
and related timetables, goals, and costs of the alternative energy	1006
resource requirements under division (B) of this section and shall	1007
submit to the commission a semiannual report of its	1008
recommendations.	1009

(E) All costs incurred by an electric distribution utility in	1010
complying with the requirements of this section shall be	1011
bypassable by any consumer that has exercised choice of supplier	1012
under section 4928.03 of the Revised Code.	1013

Sec. 4928.641. (A) If an electric distribution utility has	1014
executed a contract before April 1, 2014, to procure renewable	1015
energy resources and there are ongoing costs associated with that	1016
contract that are being recovered from customers through a	1017
bypassable charge as of the effective date of S.B. 310 of the	1018
130th general assembly, that cost recovery shall continue on a	1019
bypassable basis until the prudently incurred costs associated	1020
with that contract are fully recovered.	1021

(B) Division (A) of this section applies only to costs	1022
associated with the original term of a contract described in that	1023
division and entered into before April 1, 2014. This section does	1024
not permit recovery of costs associated with an extension of such	1025
a contract. This section does not permit recovery of costs	1026
associated with an amendment of such a contract if that amendment	1027
was made on or after April 1, 2014.	1028

Sec. 4928.643.  (A) Except as provided in division (B) of	1029
this section and section 4928.644 of the Revised Code, the	1030
baseline for an electric distribution utility's or an electric	1031
services company's compliance with the qualified renewable energy	1032
resource requirements of section 4928.64 of the Revised Code shall	1033
be the average of total kilowatt hours sold by the utility or	1034
company in the preceding three calendar years to the following:	1035

(1) In the case of an electric distribution utility, any and	1036
all retail electric consumers whose electric load centers are	1037
served by that utility and are located within the utility's	1038
certified territory;	1039

(2) In the case of an electric services company, any and all	1040
retail electric consumers who are served by the company and are	1041
located within this state.	1042

(B) Beginning with compliance year 2014, a utility or company	1043
may choose for its baseline for compliance with the qualified	1044
renewable energy resource requirements of section 4928.64 of the	1045
Revised Code to be the total kilowatt hours sold to the applicable	1046
consumers, as described in division (A)(1) or (2) of this section,	1047
in the applicable compliance year.	1048

(C) A utility or company that uses the baseline permitted	1049
under division (B) of this section may use the baseline described	1050
in division (A) of this section in any subsequent compliance year.	1051
A utility or company that makes this switch shall use the baseline	1052
described in division (A) of this section for at least three	1053
consecutive compliance years before again using the baseline	1054
permitted under division (B) of this section.	1055

Sec. 4928.644.  The public utilities commission may reduce	1056
either baseline described in section 4928.643 of the Revised Code	1057
to adjust for new economic growth in the electric distribution	1058
utility's certified territory or in the electric services	1059
company's service area in this state.	1060

Sec. 4928.65.        Sec. 4928.645. (A) An electric distribution utility	1061
or electric services company may use, for the purpose of complying	1062
with the requirements under divisions (B)(1) and (2) of section	1063
4928.64 of the Revised Code, renewable energy credits any time in	1064
the five calendar years following the date of their purchase or	1065
acquisition from any entity, including, but not limited to, athe	1066
following:	1067

(1) A mercantile customer or an;

1068

(2) An owner or operator of a hydroelectric generating	1069
facility that is located at a dam on a river, or on any water	1070
discharged to a river, that is within or bordering this state or	1071
within or bordering an adjoining state, for the purpose of	1072
complying with the renewable energy and solar energy resource	1073
requirements of division (B)(2) of section 4928.64 of the Revised	1074
Codeor that produces power that can be shown to be deliverable	1075
into this state;	1076

(3) A seller of compressed natural gas that has been produced	1077
from biologically derived methane gas, provided that the seller	1078
may only provide renewable energy credits for metered amounts of	1079
gas. The	1080

(B)(1) The public utilities commission shall adopt rules	1081
specifying that one unit of credit shall equal one megawatt hour	1082
of electricity derived from renewable energy resources, except	1083
that, for a generating facility of seventy-five megawatts or	1084
greater that is situated within this state and has committed by	1085
December 31, 2009, to modify or retrofit its generating unit or	1086
units to enable the facility to generate principally from biomass	1087
energy by June 30, 2013, each megawatt hour of electricity	1088
generated principally from that biomass energy shall equal, in	1089
units of credit, the product obtained by multiplying the actual	1090
percentage of biomass feedstock heat input used to generate such	1091
megawatt hour by the quotient obtained by dividing the then	1092
existing unit dollar amount used to determine a renewable energy	1093
compliance payment as provided under division (C)(2)(b) of section	1094
4928.64 of the Revised Code by the then existing market value of	1095
one renewable energy credit, but such megawatt hour shall not	1096
equal less than one unit of credit. Renewable energy resources do	1097
not have to be converted to electricity in order to be eligible to	1098
receive renewable energy credits. The rules shall specify that,	1099
for purposes of converting the quantity of energy derived from	1100
biologically derived methane gas to an electricity equivalent, one	1101
megawatt hour equals 3,412,142 British thermal units.	1102

(2) The rules also shall provide for this state a system of	1103
registering renewable energy credits by specifying which of any	1104
generally available registries shall be used for that purpose and	1105
not by creating a registry. That selected system of registering	1106
renewable energy credits shall allow a hydroelectric generating	1107
facility to be eligible for obtaining renewable energy credits and	1108
shall allow customer-sited projects or actions the broadest	1109
opportunities to be eligible for obtaining renewable energy	1110
credits.	1111

Sec. 4928.65.  (A) Not later than January 1, 2015, the public	1112
utilities commission shall adopt rules governing the disclosure of	1113
the costs to customers of the renewable energy resource, energy	1114
efficiency savings, and peak demand reduction requirements of	1115
sections 4928.64 and 4928.66 of the Revised Code. The rules shall	1116
include both of the following requirements:	1117

(1) That every electric distribution utility list, on all	1118
customer bills sent by the utility, including utility consolidated	1119
bills that include both electric distribution utility and electric	1120
services company charges, the individual customer cost of the	1121
utility's compliance with all of the following for the applicable	1122
billing period:	1123

(a) The renewable energy resource requirements under section	1124
4928.64 of the Revised Code, subject to division (B) of this	1125
section;	1126

(b) The energy efficiency savings requirements under section	1127
4928.66 of the Revised Code;	1128

(c) The peak demand reduction requirements under section	1129
4928.66 of the Revised Code.	1130

(2) That every electric services company list, on all	1131
customer bills sent by the company, the individual customer cost,	1132
subject to division (B) of this section, of the company's	1133
compliance with the renewable energy resource requirements under	1134
section 4928.64 of the Revised Code for the applicable billing	1135
period.	1136

(B)(1) For purposes of division (A)(1)(a) of this section,	1137
the cost of compliance with the renewable energy resource	1138
requirements shall be calculated by multiplying the individual	1139
customer's monthly usage by the combined weighted average of	1140
renewable-energy-credit costs, including	1141
solar-renewable-energy-credit costs, paid by all electric	1142
distribution utilities, as listed in the commission's most	1143
recently available alternative energy portfolio standard report.	1144

(2) For purposes of division (A)(2) of this section, the cost	1145
of compliance with the renewable energy resource requirements	1146
shall be calculated by multiplying the individual customer's	1147
monthly usage by the combined weighted average of	1148
renewable-energy-credit costs, including	1149
solar-renewable-energy-credit costs, paid by all electric services	1150
companies, as listed in the commission's most recently available	1151
alternative energy portfolio standard report.	1152

(C) The costs required to be listed under division (A)(1) of	1153
this section shall be listed on each customer's monthly bill as	1154
three distinct line items. The cost required to be listed under	1155
division (A)(2) of this section shall be listed on each customer's	1156
monthly bill as a distinct line item.	1157

Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric	1158
distribution utility shall implement energy efficiency programs	1159
that achieve energy savings equivalent to at least three-tenths of	1160
one per cent of the total, annual average, and normalized	1161
kilowatt-hour sales of the electric distribution utility during	1162
the preceding three calendar years to customers in this state. An	1163
energy efficiency program may include a combined heat and power	1164
system placed into service or retrofitted on or after the	1165
effective date of the amendment of this section by S.B. 315 of the	1166
129th general assembly, September 10, 2012, or a waste energy	1167
recovery system placed into service or retrofitted on or after the	1168
same dateSeptember 10, 2012, except that a waste energy recovery	1169
system described in division (A)(38)(b) of section 4928.01 of the	1170
Revised Code may be included only if it was placed into service	1171
between January 1, 2002, and December 31, 2004. For a waste energy	1172
recovery or combined heat and power system, the savings shall be	1173
as estimated by the public utilities commission. The savings	1174
requirement, using such a three-year average, shall increase to an	1175
additional five-tenths of one per cent in 2010, seven-tenths of	1176
one per cent in 2011, eight-tenths of one per cent in 2012,	1177
nine-tenths of one per cent in 2013, and one per cent fromin 2014	1178
to. In 2015 and 2016, an electric distribution utility shall	1179
achieve energy savings equal to the result of subtracting the	1180
cumulative energy savings achieved since 2009 from the product of	1181
multiplying the baseline for energy savings, described in division	1182
(A)(2)(a) of this section, by four and two-tenths of one per cent.	1183
If the result is zero or less for the year for which the	1184
calculation is being made, the utility shall not be required to	1185
achieve additional energy savings for that year, but may achieve	1186
additional energy savings for that year. Thereafter, the annual	1187
savings requirements shall be, for years 2017, 2018, 2019, and	1188
2020, one per cent of the baseline, and two per cent each year	1189
thereafter, achieving a cumulative, annual energy savings in	1190
excess of twenty-two per cent by the end of 20252027. For	1191
purposes of a waste energy recovery or combined heat and power	1192
system, an electric distribution utility shall not apply more than	1193
the total annual percentage of the electric distribution utility's	1194
industrial-customer load, relative to the electric distribution	1195
utility's total load, to the annual energy savings requirement.	1196

(b) Beginning in 2009, an electric distribution utility shall	1197
implement peak demand reduction programs designed to achieve a one	1198
per cent reduction in peak demand in 2009 and an additional	1199
seventy-five hundredths of one per cent reduction each year	1200
through 20182014. In 20182015 and 2016, the standing committees	1201
in the house of representatives and the senate primarily dealing	1202
with energy issues shall make recommendations to the general	1203
assembly regarding futurean electric distribution utility shall	1204
achieve a reduction in peak demand equal to the result of	1205
subtracting the cumulative peak demand reductions achieved since	1206
2009 from the product of multiplying the baseline for peak demand	1207
reduction, described in division (A)(2)(a) of this section, by	1208
four and seventy-five hundredths of one per cent. If the result is	1209
zero or less for the year for which the calculation is being made,	1210
the utility shall not be required to achieve an additional	1211
reduction in peak demand for that year, but may achieve an	1212
additional reduction in peak demand for that year. In 2017 and	1213
each year thereafter through 2020, the utility shall achieve an	1214
additional seventy-five hundredths of one per cent reduction in	1215
peak demand reduction targets.	1216

(2) For the purposes of divisions (A)(1)(a) and (b) of this	1217
section:	1218

(a) The baseline for energy savings under division (A)(1)(a)	1219
of this section shall be the average of the total kilowatt hours	1220
the electric distribution utility sold in the preceding three	1221
calendar years, and the. The baseline for a peak demand reduction	1222
under division (A)(1)(b) of this section shall be the average peak	1223
demand on the utility in the preceding three calendar years,	1224
except that the commission may reduce either baseline to adjust	1225
for new economic growth in the utility's certified territory.	1226
Neither baseline shall include the load and usage of any of the	1227
following customers:	1228

(i) Beginning January 1, 2017, a customer for which a	1229
reasonable arrangement has been approved under section 4905.31 of	1230
the Revised Code;	1231

(ii) A customer that has opted out of the utility's portfolio	1232
plan under section 4928.6611 of the Revised Code;	1233

(iii) A customer that has opted out of the utility's	1234
portfolio plan under Section 8 of S.B. 310 of the 130th general	1235
assembly.	1236

(b) The commission may amend the benchmarks set forth in	1237
division (A)(1)(a) or (b) of this section if, after application by	1238
the electric distribution utility, the commission determines that	1239
the amendment is necessary because the utility cannot reasonably	1240
achieve the benchmarks due to regulatory, economic, or	1241
technological reasons beyond its reasonable control.	1242

(c) Compliance with divisions (A)(1)(a) and (b) of this	1243
section shall be measured by including the effects of all	1244
demand-response programs for mercantile customers of the subject	1245
electric distribution utility, all waste energy recovery systems	1246
and all combined heat and power systems, and all such mercantile	1247
customer-sited energy efficiency, including waste energy recovery	1248
and combined heat and power, and peak demand reduction programs,	1249
adjusted upward by the appropriate loss factors. Any mechanism	1250
designed to recover the cost of energy efficiency, including waste	1251
energy recovery and combined heat and power, and peak demand	1252
reduction programs under divisions (A)(1)(a) and (b) of this	1253
section may exempt mercantile customers that commit their	1254
demand-response or other customer-sited capabilities, whether	1255
existing or new, for integration into the electric distribution	1256
utility's demand-response, energy efficiency, including waste	1257
energy recovery and combined heat and power, or peak demand	1258
reduction programs, if the commission determines that that	1259
exemption reasonably encourages such customers to commit those	1260
capabilities to those programs. If a mercantile customer makes	1261
such existing or new demand-response, energy efficiency, including	1262
waste energy recovery and combined heat and power, or peak demand	1263
reduction capability available to an electric distribution utility	1264
pursuant to division (A)(2)(c) of this section, the electric	1265
utility's baseline under division (A)(2)(a) of this section shall	1266
be adjusted to exclude the effects of all such demand-response,	1267
energy efficiency, including waste energy recovery and combined	1268
heat and power, or peak demand reduction programs that may have	1269
existed during the period used to establish the baseline. The	1270
baseline also shall be normalized for changes in numbers of	1271
customers, sales, weather, peak demand, and other appropriate	1272
factors so that the compliance measurement is not unduly	1273
influenced by factors outside the control of the electric	1274
distribution utility.	1275

(d)(i) Programs implemented by a utility may include	1276
demand-responsethe following:	1277

(I) Demand-response programs grid;

1278

(II) Smart grid investment programs, provided that such	1279
programs are demonstrated to be cost-beneficial, customer-sited;	1280

(III) Customer-sited programs, including waste energy	1281
recovery and combined heat and power systems, and transmission;	1282

(IV) Transmission and distribution infrastructure	1283
improvements that reduce line losses.;	1284

(V) Energy efficiency savings and peak demand reduction that	1285
are achieved, in whole or in part, as a result of funding provided	1286
from the universal service fund established by section 4928.51 of	1287
the Revised Code to benefit low-income customers through programs	1288
that include, but are not limited to, energy audits, the	1289
installation of energy efficiency insulation, appliances, and	1290
windows, and other weatherization measures.	1291

(ii) No energy efficiency or peak demand reduction achieved	1292
under divisions (A)(2)(d)(i)(IV) and (V) of this section shall	1293
qualify for shared savings.	1294

(iii) Division (A)(2)(c) of this section shall be applied to	1295
include facilitating efforts by a mercantile customer or group of	1296
those customers to offer customer-sited demand-response, energy	1297
efficiency, including waste energy recovery and combined heat and	1298
power, or peak demand reduction capabilities to the electric	1299
distribution utility as part of a reasonable arrangement submitted	1300
to the commission pursuant to section 4905.31 of the Revised Code.	1301

(e) No programs or improvements described in division	1302
(A)(2)(d) of this section shall conflict with any statewide	1303
building code adopted by the board of building standards.	1304

(B) In accordance with rules it shall adopt, the public	1305
utilities commission shall produce and docket at the commission an	1306
annual report containing the results of its verification of the	1307
annual levels of energy efficiency and of peak demand reductions	1308
achieved by each electric distribution utility pursuant to	1309
division (A) of this section. A copy of the report shall be	1310
provided to the consumers' counsel.	1311

(C) If the commission determines, after notice and	1312
opportunity for hearing and based upon its report under division	1313
(B) of this section, that an electric distribution utility has	1314
failed to comply with an energy efficiency or peak demand	1315
reduction requirement of division (A) of this section, the	1316
commission shall assess a forfeiture on the utility as provided	1317
under sections 4905.55 to 4905.60 and 4905.64 of the Revised Code,	1318
either in the amount, per day per undercompliance or	1319
noncompliance, relative to the period of the report, equal to that	1320
prescribed for noncompliances under section 4905.54 of the Revised	1321
Code, or in an amount equal to the then existing market value of	1322
one renewable energy credit per megawatt hour of undercompliance	1323
or noncompliance. Revenue from any forfeiture assessed under this	1324
division shall be deposited to the credit of the advanced energy	1325
fund created under section 4928.61 of the Revised Code.	1326

(D) The commission may establish rules regarding the content	1327
of an application by an electric distribution utility for	1328
commission approval of a revenue decoupling mechanism under this	1329
division. Such an application shall not be considered an	1330
application to increase rates and may be included as part of a	1331
proposal to establish, continue, or expand energy efficiency or	1332
conservation programs. The commission by order may approve an	1333
application under this division if it determines both that the	1334
revenue decoupling mechanism provides for the recovery of revenue	1335
that otherwise may be forgone by the utility as a result of or in	1336
connection with the implementation by the electric distribution	1337
utility of any energy efficiency or energy conservation programs	1338
and reasonably aligns the interests of the utility and of its	1339
customers in favor of those programs.	1340

(E) The commission additionally shall adopt rules that	1341
require an electric distribution utility to provide a customer	1342
upon request with two years' consumption data in an accessible	1343
form.	1344

Sec. 4928.662.  For the purpose of measuring and determining	1345
compliance with the energy efficiency and peak demand reduction	1346
requirements under section 4928.66 of the Revised Code, the public	1347
utilities commission shall count and recognize compliance as	1348
follows:	1349

(A) Energy efficiency savings and peak demand reduction	1350
achieved through actions taken by customers or through electric	1351
distribution utility programs that comply with federal standards	1352
for either or both energy efficiency and peak demand reduction	1353
requirements, including resources associated with such savings or	1354
reduction that are recognized as capacity resources by the	1355
regional transmission organization operating in Ohio in compliance	1356
with section 4928.12 of the Revised Code, shall count toward	1357
compliance with the energy efficiency and peak demand reduction	1358
requirements.	1359

(B) Energy efficiency savings and peak demand reduction	1360
achieved on and after the effective date of S.B. 310 of the 130th	1361
general assembly shall be measured on the higher of an as found or	1362
deemed basis, except that, solely at the option of the electric	1363
distribution utility, such savings and reduction achieved since	1364
2006 may also be measured using this method. For new construction,	1365
the energy efficiency savings and peak demand reduction shall be	1366
counted based on 2008 federal standards, provided that when new	1367
construction replaces an existing facility, the difference in	1368
energy consumed, energy intensity, and peak demand between the new	1369
and replaced facility shall be counted toward meeting the energy	1370
efficiency and peak demand reduction requirements.	1371

(C) The commission shall count both the energy efficiency	1372
savings and peak demand reduction on an annualized basis.	1373

(D) The commission shall count both the energy efficiency	1374
savings and peak demand reduction on a gross savings basis.	1375

(E) The commission shall count energy efficiency savings and	1376
peak demand reductions associated with transmission and	1377
distribution infrastructure improvements that reduce line losses.	1378
No energy efficiency or peak demand reduction achieved under	1379
division (E) of this section shall qualify for shared savings.	1380

(F) Energy efficiency savings and peak demand reduction	1381
amounts approved by the commission shall continue to be counted	1382
toward achieving the energy efficiency and peak demand reduction	1383
requirements as long as the requirements remain in effect.	1384

(G) Any energy efficiency savings or peak demand reduction	1385
amount achieved in excess of the requirements may, at the	1386
discretion of the electric distribution utility, be banked and	1387
applied toward achieving the energy efficiency or peak demand	1388
reduction requirements in future years.	1389

Sec. 4928.6610.  As used in sections 4928.6611 to 4928.6616	1390
of the Revised Code:	1391

(A) "Customer" means any customer of an electric distribution	1392
utility to which either of the following applies:	1393

(1) The customer receives service above the primary voltage	1394
level as determined by the utility's tariff classification.	1395

(2) The customer is a commercial or industrial customer to	1396
which both of the following apply:	1397

(a) The customer receives electricity through a meter of an	1398
end user or through more than one meter at a single location in a	1399
quantity that exceeds forty-five million kilowatt hours of	1400
electricity for the preceding calendar year.	1401

(b) The customer has made a written request for registration	1402
as a self-assessing purchaser pursuant to section 5727.81 of the	1403
Revised Code.	1404

(B) "Energy intensity" means the amount of energy, from	1405
electricity, used or consumed per unit of production.	1406

(C) "Portfolio plan" means the comprehensive energy	1407
efficiency and peak-demand reduction program portfolio plan	1408
required under rules adopted by the public utilities commission	1409
and codified in Chapter 4901:1-39 of the Administrative Code or	1410
hereafter recodified or amended.	1411

Sec. 4928.6611.  Beginning January 1, 2017, a customer of an	1412
electric distribution utility may opt out of the opportunity and	1413
ability to obtain direct benefits from the utility's portfolio	1414
plan. Such an opt out shall extend to all of the customer's	1415
accounts, irrespective of the size or service voltage level that	1416
are associated with the activities performed by the customer and	1417
that are located on or adjacent to the customer's premises.	1418

Sec. 4928.6612.  Any customer electing to opt out under	1419
section 4928.6611 of the Revised Code shall do so by providing a	1420
verified written notice of intent to opt out to the electric	1421
distribution utility from which it receives service and submitting	1422
a complete copy of the opt-out notice to the secretary of the	1423
public utilities commission.	1424

The notice provided to the utility shall include all of the	1425
following:	1426

(A) A statement indicating that the customer has elected to	1427
opt out;	1428

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

1429

(C) The account number for each customer account to which the	1430
opt out shall apply;	1431

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

1432

(E) The date upon which the customer established, or plans to	1433
establish a process and implement, cost-effective measures to	1434
improve its energy efficiency savings and peak demand reductions.	1435

Sec. 4928.6613.  Upon a customer's election to opt out under	1436
section 4928.6611 of the Revised Code and commencing on the	1437
effective date of the election to opt out, no account properly	1438
identified in the customer's verified notice under division (C) of	1439
section 4928.6612 of the Revised Code shall be subject to any cost	1440
recovery mechanism under section 4928.66 of the Revised Code or	1441
eligible to participate in, or directly benefit from, programs	1442
arising from electric distribution utility portfolio plans	1443
approved by the public utilities commission.	1444

Sec. 4928.6614.  (A) A customer subsequently may opt in to an	1445
electric distribution utility's portfolio plan after a previous	1446
election to opt out under section 4928.6611 of the Revised Code if	1447
both of the following apply:	1448

(1) The customer has previously opted out for a period of at	1449
least three consecutive calendar years.	1450

(2) The customer gives twelve months' advance notice of its	1451
intent to opt in to the public utilities commission and the	1452
electric distribution utility from which it receives service.	1453

(B) A customer that opts in under this section shall maintain	1454
its opt-in status for three consecutive calendar years before	1455
being eligible subsequently to exercise its right to opt out after	1456
giving the utility twelve months' advance notice.	1457

Sec. 4928.6615.  Any customer electing to opt in under	1458
section 4928.6614 of the Revised Code shall do so by providing a	1459
written notice of intent to opt in to the electric distribution	1460
utility from which it receives service and submitting a complete	1461
copy of the opt-in notice to the secretary of the public utilities	1462
commission. The notice shall include all of the following:	1463

(A) A statement indicating that the customer has elected to	1464
opt in;	1465

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

1466

(C) The account number for each customer account to which the	1467
opt in shall apply;	1468

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

1469

Sec. 4928.6616.  (A) Not later than sixty days after the	1470
effective date at a customer's election to opt out under section	1471
4928.6611 of the Revised Code, the customer shall prepare and	1472
submit an initial report to the staff of the public utilities	1473
commission. The report shall summarize the projects, actions,	1474
policies, or practices that the customer may consider	1475
implementing, based on the customer's cost-effectiveness criteria,	1476
for the purpose of reducing energy intensity.	1477

(B) For as long as the opt out is in effect, the customer	1478
shall, at least once every twenty-four months, commencing with the	1479
effective date of the election to opt out, prepare and submit, to	1480
the staff of the commission, an updated report. The updated report	1481
shall include a general description of any cumulative amount of	1482
energy-intensity reductions achieved by the customer during the	1483
period beginning on the effective date of the election to opt out	1484
and ending not later than sixty days prior to the date that the	1485
updated report is submitted.	1486

(C) All reports filed under this section shall be verified by	1487
the customer.	1488

(D) Upon submission of any updated report under division (B)	1489
of this section, the staff of the commission may request the	1490
customer to provide additional information on the	1491
energy-intensity-reducing projects, actions, policies, or	1492
practices implemented by the customer and the amount of	1493
energy-intensity reductions achieved during the period covered by	1494
the updated report.	1495

(E) Any information contained in any report submitted under	1496
this section and any customer responses to requests for additional	1497
information shall be deemed to be confidential, proprietary, and a	1498
trade secret. No such information or response shall be publicly	1499
divulged without written authorization by the customer or used for	1500
any purpose other than to identify the amount of energy-intensity	1501
reductions achieved by the customer.	1502

(F) If the commission finds, after notice and a hearing, that	1503
the customer has failed to achieve any substantial cumulative	1504
reduction in energy intensity identified by the customer in an	1505
updated report submitted under division (B) of this section, and	1506
if the failure is not excusable for good cause shown by the	1507
customer, the commission may suspend the opt out for the period of	1508
time that it may take the customer to achieve the cumulative	1509
reduction in energy intensity identified by the customer but no	1510
longer.	1511

Section 2.  That existing sections 3706.25, 4928.01, 4928.20,	1512
4928.53, 4928.64, 4928.65, and 4928.66 of the Revised Code are	1513
hereby repealed.	1514

Section 3. It is the intent of the General Assembly to ensure	1515
that customers in Ohio have access to affordable energy. It is the	1516
intent of the General Assembly to incorporate as many forms of	1517
inexpensive, reliable energy sources in the state of Ohio as	1518
possible. It is also the intent of the General Assembly to get a	1519
better understanding of how energy mandates impact jobs and the	1520
economy in Ohio and to minimize government mandates. Because the	1521
energy mandates in current law may be unrealistic and	1522
unattainable, it is the intent of the General Assembly to review	1523
all energy resources as part of its efforts to address energy	1524
pricing issues.	1525

Therefore, it is the intent of the General Assembly to enact	1526
legislation in the future, after taking into account the	1527
recommendations of the Energy Mandates Study Committee, that will	1528
reduce the mandates in sections 4928.64 and 4928.66 of the Revised	1529
Code and provide greater transparency to electric customers on the	1530
costs of future energy mandates, if there are to be any.	1531

Section 4. (A) There is hereby created the Energy Mandates	1532
Study Committee to study Ohio's renewable energy, energy	1533
efficiency, and peak demand reduction mandates. The Committee	1534
shall consist of the following members:	1535

(1) Six members of the House of Representatives appointed by	1536
the Speaker of the House of Representatives, with not more than	1537
four members from the same political party;	1538

(2) Six members of the Senate appointed by the President of	1539
the Senate, with not more than four members from the same	1540
political party;	1541

(3) The chairperson of the Public Utilities Commission, as an	1542
ex officio, nonvoting member.	1543

(B) The Speaker of the House of Representatives and the	1544
President of the Senate shall each appoint one member of the	1545
Committee to serve as a cochairperson of the Committee. Any	1546
vacancies that occur on the Committee shall be filled in the same	1547
manner as the original appointment.	1548

(C) Not later than September 30, 2015, the Committee shall	1549
submit a report of its findings to the House of Representatives	1550
and the Senate in accordance with division (B) of section 101.68	1551
of the Revised Code. The Committee shall cease to exist on October	1552
1, 2015. The report shall include, at a minimum, all of the	1553
following:	1554

(1) A cost-benefit analysis of the renewable energy, energy	1555
efficiency, and peak demand reduction mandates, including the	1556
projected costs on electric customers if the mandates were to	1557
remain at the percentage levels required under sections 4928.64	1558
and 4928.66 of the Revised Code, as amended by this act;	1559

(2) A recommendation of the best, evidence-based standard for	1560
reviewing the mandates in the future, including an examination of	1561
readily available technology to attain such a standard;	1562

(3) The potential benefits of an opt-in system for the	1563
mandates, in contrast to an opt-out system for the mandates, and a	1564
recommendation as to whether an opt-in system should apply to all	1565
electric customers, whether an opt-out system should apply to only	1566
certain customers, or whether a hybrid of these two systems is	1567
recommended;	1568

(4) A recommendation on whether costs incurred by an electric	1569
distribution utility or an electric services company pursuant to	1570
any contract, which may be entered into by the utility or company	1571
on or after the effective date of S.B. 310 of the 130th General	1572
Assembly for the purpose of procuring renewable energy resources	1573
or renewable energy credits and complying with the requirements of	1574
section 4928.64 of the Revised Code, may be passed through to any	1575
consumer, if such costs could have been avoided with the inclusion	1576
of a change of law provision in the contract;	1577

(5) A review of the risk of increased grid congestion due to	1578
the anticipated retirement of coal-fired generation capacity and	1579
other factors; the ability of distributed generation, including	1580
combined heat and power and waste energy recovery, to reduce	1581
electric grid congestion; and the potential benefit to all energy	1582
consumers resulting from reduced grid congestion;	1583

(6) An analysis of whether there are alternatives for the	1584
development of advanced energy resources as that term is defined	1585
in section 4928.01 of the Revised Code;	1586

(7) An assessment of the environmental impact of the	1587
renewable energy, energy efficiency, and peak demand reduction	1588
mandates on reductions of greenhouse gas and fossil fuel	1589
emissions;	1590

(8) A review of payments made by electric distribution	1591
utilities to third-party administrators to promote energy	1592
efficiency and peak demand reduction programs under the terms of	1593
the utilities' portfolio plans. The review shall include, but	1594
shall not be limited to, a complete analysis of all fixed and	1595
variable payments made to those administrators since the effective	1596
date of S.B. 221 of the 127th General Assembly, jobs created,	1597
retained, and impacted, whether those payments outweigh the	1598
benefits to ratepayers, and whether those payments should no	1599
longer be recovered from ratepayers. The review also shall include	1600
a recommendation regarding whether the administrators should	1601
submit periodic reports to the Commission documenting the payments	1602
received from utilities.	1603

Section 5. As used in Sections 6, 7, 8, 9, 10, and 11 of this	1604
act:	1605

"Customer," "energy intensity," and "portfolio plan" have the	1606
same meanings as in section 4928.6610 of the Revised Code.	1607

"Electric distribution utility" has the same meaning as in	1608
section 4928.01 of the Revised Code.	1609

Section 6. (A) If an electric distribution utility has a	1610
portfolio plan that is in effect on the effective date of this	1611
section, the utility shall do either of the following, at its sole	1612
discretion:	1613

(1) Continue to implement the portfolio plan with no	1614
amendments to the plan, for the duration that the Public Utilities	1615
Commission originally approved, subject to divisions (D) and (E)	1616
of this section;	1617

(2) Seek an amendment of the portfolio plan under division	1618
(B) of this section.	1619

(B)(1) An electric distribution utility that seeks to amend	1620
its portfolio plan under division (A)(2) of this section shall	1621
file an application with the Commission to amend the plan not	1622
later than thirty days after the effective date of this section.	1623
The Commission shall review the application in accordance with its	1624
rules as if the application were for a new portfolio plan. The	1625
Commission shall review and approve, or modify and approve, the	1626
application not later than sixty days after the date that the	1627
application is filed. Any portfolio plan amended under this	1628
division shall take effect on January 1, 2015, and expire on	1629
December 31, 2016. If the Commission fails to review and approve,	1630
or modify and approve, the application on or before January 1,	1631
2015, the plan shall be deemed approved as amended in the	1632
application and shall take effect on January 1, 2015, and expire	1633
on December 31, 2016.	1634

(2) Section 4928.66 of the Revised Code, as amended by this	1635
act, shall apply to an electric distribution utility that applies	1636
to amend its portfolio plan under division (B) of this section.	1637

(C) If an electric distribution utility fails to file an	1638
application to amend its portfolio plan under division (B) of this	1639
section within the required thirty-day period, the electric	1640
distribution utility shall proceed in accordance with division	1641
(A)(1) of this section.	1642

(D) If an electric distribution utility implements its	1643
portfolio plan under division (A)(1) of this section for the	1644
plan's original duration and if the plan expires before December	1645
31, 2016, the Commission shall automatically extend the plan	1646
through December 31, 2016, with no amendments to the plan.	1647

(E)(1) The provisions of section 4928.66 of the Revised Code,	1648
as it existed prior to the effective date of this section, shall	1649
apply to an electric distribution utility that has a portfolio	1650
plan that is implemented under division (A)(1) of this section for	1651
either of the following time periods:	1652

(a) The plan's original duration;

1653

(b) The plan's original duration and then, until December 31,	1654
2016, if the plan is extended under division (D) of this section.	1655

(2) Beginning January 1, 2017, the provisions of section	1656
4928.66 of the Revised Code as amended by this act shall apply to	1657
the electric distribution utility.	1658

Section 7. (A) The Public Utilities Commission shall neither	1659
review nor approve an application for a portfolio plan if the	1660
application is pending on the effective date of this section.	1661

(B) Prior to January 1, 2017, the Commission shall not take	1662
any action with regard to any portfolio plan or application	1663
regarding a portfolio plan, except those actions expressly	1664
authorized or required by Section 6 of this act and actions	1665
necessary to administer the implementation of existing portfolio	1666
plans.	1667

Section 8. Beginning January 1, 2015, a customer of an	1668
electric distribution utility may opt out of the opportunity and	1669
ability to obtain direct benefits from the utility's portfolio	1670
plan that is amended under division (B) of Section 6 of this act.	1671
The opt out shall apply only to the amended plan. The opt out	1672
shall extend to all of the customer's accounts, irrespective of	1673
the size or service voltage level that are associated with the	1674
activities performed by the customer and that are located on or	1675
adjacent to the customer's premises.	1676

Section 9. Any customer electing to opt out under Section 8	1677
of this act shall do so by providing a verified written notice of	1678
intent to opt out to the electric distribution utility from which	1679
it receives service and submitting a complete copy of the opt-out	1680
notice to the Secretary of the Public Utilities Commission.	1681

The notice provided to the utility shall include all of the	1682
following:	1683

(A) A statement indicating that the customer has elected to	1684
opt out;	1685

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

1686

(C) The account number for each customer account to which the	1687
opt out shall apply;	1688

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

1689

(E) The date upon which the customer established, or plans to	1690
establish a process and implement, cost-effective measures to	1691
improve its energy efficiency savings and peak demand reductions.	1692

Section 10. Upon a customer's election to opt out under	1693
Section 8 of this act and commencing on the effective date of the	1694
election to opt out, no account properly identified in the	1695
customer's verified notice under division (C) of Section 9 of this	1696
act shall be subject to any cost recovery mechanism under section	1697
4928.66 of the Revised Code, as amended by this act, for the	1698
duration of the amended portfolio plan or eligible to participate	1699
in, or directly benefit from, programs arising from the amended	1700
portfolio plan.	1701

Section 11. (A) Not later than sixty days after the effective	1702
date of a customer's election to opt out under Section 8 of this	1703
act, the customer shall prepare and submit an initial report to	1704
the staff of the Public Utilities Commission. The report shall	1705
summarize the projects, actions, policies, or practices that the	1706
customer may consider implementing, based on the customer's	1707
cost-effectiveness criteria, for the purpose of reducing energy	1708
intensity.	1709

(B) Not later than November 1, 2016, the customer shall	1710
prepare and submit to the staff of the Commission an updated	1711
report. The updated report shall include a general description of	1712
any cumulative amount of energy-intensity reductions achieved by	1713
the customer during the period beginning on the effective date of	1714
the election to opt out and ending not later than sixty days prior	1715
to the date that the updated report is submitted.	1716

(C) Any report filed under this section shall be verified by	1717
the customer.	1718

(D) Upon submission of the updated report, the staff of the	1719
Commission may request the customer to provide additional	1720
information on the energy-intensity-reducing projects, actions,	1721
policies, or practices implemented by the customer and the amount	1722
of energy-intensity reductions achieved during the period covered	1723
by the updated report.	1724

(E) Any information contained in any report submitted under	1725
this section and any customer responses to requests for additional	1726
information shall be deemed to be confidential, proprietary, and a	1727
trade secret. No such information or response shall be publicly	1728
divulged without written authorization by the customer or used for	1729
any purpose other than to identify the amount of energy-intensity	1730
reductions achieved by the customer.	1731