Bill Text: OH SB34 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To repeal the requirement that electric distribution utilities and electric services companies provide 25% of their retail power supplies from advanced and renewable energy resources by 2025.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2013-02-12 - To Public Utilities [SB34 Detail]

Download: Ohio-2013-SB34-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 34

Senator Jordan 

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A BILL

To amend sections 4928.142, 4928.143, 4928.20,

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4928.61, 4928.62, 5501.311, and 5727.75 and to

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repeal sections 4928.64 and 4928.65 of the Revised

3

Code to repeal the requirement that electric

4

distribution utilities and electric services

5

companies provide 25% of their retail power

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supplies from advanced and renewable energy

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resources by 2025.

8

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

Section 1. That sections 4928.142, 4928.143, 4928.20,	9
4928.61, 4928.62, 5501.311, and 5727.75 be amended to read as	10
follows:	11

Sec. 4928.142. (A) For the purpose of complying with section	12
4928.141 of the Revised Code and subject to division (D) of this	13
section and, as applicable, subject to the rate plan requirement	14
of division (A) of section 4928.141 of the Revised Code, an	15
electric distribution utility may establish a standard service	16
offer price for retail electric generation service that is	17
delivered to the utility under a market-rate offer.	18

(1) The market-rate offer shall be determined through a	19
competitive bidding process that provides for all of the	20
following:	21

(a) Open, fair, and transparent competitive solicitation;

22

(b) Clear product definition;

23

(c) Standardized bid evaluation criteria;

24

(d) Oversight by an independent third party that shall design	25
the solicitation, administer the bidding, and ensure that the	26
criteria specified in divisiondivisions (A)(1)(a) to (c) of this	27
section are met;	28

(e) Evaluation of the submitted bids prior to the selection	29
of the least-cost bid winner or winners.	30

No generation supplier shall be prohibited from participating	31
in the bidding process.	32

(2) The public utilities commission shall modify rules, or	33
adopt new rules as necessary, concerning the conduct of the	34
competitive bidding process and the qualifications of bidders,	35
which rules shall foster supplier participation in the bidding	36
process and shall be consistent with the requirements of division	37
(A)(1) of this section.	38

(B) Prior to initiating a competitive bidding process for a	39
market-rate offer under division (A) of this section, the electric	40
distribution utility shall file an application with the	41
commission. An electric distribution utility may file its	42
application with the commission prior to the effective date of the	43
commission rules required under division (A)(2) of this section,	44
and, as the commission determines necessary, the utility shall	45
immediately conform its filing to the rules upon their taking	46
effect.	47

An application under this division shall detail the electric	48
distribution utility's proposed compliance with the requirements	49
of division (A)(1) of this section and with commission rules under	50
division (A)(2) of this section and demonstrate that all of the	51
following requirements are met:	52

(1) The electric distribution utility or its transmission	53
service affiliate belongs to at least one regional transmission	54
organization that has been approved by the federal energy	55
regulatory commission; or there otherwise is comparable and	56
nondiscriminatory access to the electric transmission grid.	57

(2) Any such regional transmission organization has a	58
market-monitor function and the ability to take actions to	59
identify and mitigate market power or the electric distribution	60
utility's market conduct; or a similar market monitoring function	61
exists with commensurate ability to identify and monitor market	62
conditions and mitigate conduct associated with the exercise of	63
market power.	64

(3) A published source of information is available publicly	65
or through subscription that identifies pricing information for	66
traded electricity on- and off-peak energy products that are	67
contracts for delivery beginning at least two years from the date	68
of the publication and is updated on a regular basis.	69

The commission shall initiate a proceeding and, within ninety	70
days after the application's filing date, shall determine by order	71
whether the electric distribution utility and its market-rate	72
offer meet all of the foregoing requirements. If the finding is	73
positive, the electric distribution utility may initiate its	74
competitive bidding process. If the finding is negative as to one	75
or more requirements, the commission in the order shall direct the	76
electric distribution utility regarding how any deficiency may be	77
remedied in a timely manner to the commission's satisfaction;	78
otherwise, the electric distribution utility shall withdraw the	79
application. However, if such remedy is made and the subsequent	80
finding is positive and also if the electric distribution utility	81
made a simultaneous filing under this section and section 4928.143	82
of the Revised Code, the utility shall not initiate its	83
competitive bid until at least one hundred fifty days after the	84
filing date of those applications.	85

(C) Upon the completion of the competitive bidding process	86
authorized by divisions (A) and (B) of this section, including for	87
the purpose of division (D) of this section, the commission shall	88
select the least-cost bid winner or winners of that process, and	89
such selected bid or bids, as prescribed as retail rates by the	90
commission, shall be the electric distribution utility's standard	91
service offer unless the commission, by order issued before the	92
third calendar day following the conclusion of the competitive	93
bidding process for the market rate offer, determines that one or	94
more of the following criteria were not met:	95

(1) Each portion of the bidding process was oversubscribed,	96
such that the amount of supply bid upon was greater than the	97
amount of the load bid out.	98

(2) There were four or more bidders.

99

(3) At least twenty-five per cent of the load is bid upon by	100
one or more persons other than the electric distribution utility.	101

All costs incurred by the electric distribution utility as a	102
result of or related to the competitive bidding process or to	103
procuring generation service to provide the standard service	104
offer, including the costs of energy and capacity and the costs of	105
all other products and services procured as a result of the	106
competitive bidding process, shall be timely recovered through the	107
standard service offer price, and, for that purpose, the	108
commission shall approve a reconciliation mechanism, other	109
recovery mechanism, or a combination of such mechanisms for the	110
utility.	111

(D) The first application filed under this section by an	112
electric distribution utility that, as of July 31, 2008, directly	113
owns, in whole or in part, operating electric generating	114
facilities that had been used and useful in this state shall	115
require that a portion of that utility's standard service offer	116
load for the first five years of the market rate offer be	117
competitively bid under division (A) of this section as follows:	118
ten per cent of the load in year one, not more than twenty per	119
cent in year two, thirty per cent in year three, forty per cent in	120
year four, and fifty per cent in year five. Consistent with those	121
percentages, the commission shall determine the actual percentages	122
for each year of years one through five. The standard service	123
offer price for retail electric generation service under this	124
first application shall be a proportionate blend of the bid price	125
and the generation service price for the remaining standard	126
service offer load, which latter price shall be equal to the	127
electric distribution utility's most recent standard service offer	128
price, adjusted upward or downward as the commission determines	129
reasonable, relative to the jurisdictional portion of any known	130
and measurable changes from the level of any one or more of the	131
following costs as reflected in that most recent standard service	132
offer price:	133

(1) The electric distribution utility's prudently incurred	134
cost of fuel used to produce electricity;	135

(2) Its prudently incurred purchased power costs;

136

(3) Its prudently incurred costs of satisfying the supply and	137
demand portfolio requirements of this state, including, but not	138
limited to, renewable energy resource and energy efficiency	139
requirements;	140

(4) Its costs prudently incurred to comply with environmental	141
laws and regulations, with consideration of the derating of any	142
facility associated with those costs.	143

In making any adjustment to the most recent standard service	144
offer price on the basis of costs described in division (D) of	145
this section, the commission shall include the benefits that may	146
become available to the electric distribution utility as a result	147
of or in connection with the costs included in the adjustment,	148
including, but not limited to, the utility's receipt of emissions	149
credits or its receipt of tax benefits or of other benefits, and,	150
accordingly, the commission may impose such conditions on the	151
adjustment to ensure that any such benefits are properly aligned	152
with the associated cost responsibility. The commission shall also	153
determine how such adjustments will affect the electric	154
distribution utility's return on common equity that may be	155
achieved by those adjustments. The commission shall not apply its	156
consideration of the return on common equity to reduce any	157
adjustments authorized under this division unless the adjustments	158
will cause the electric distribution utility to earn a return on	159
common equity that is significantly in excess of the return on	160
common equity that is earned by publicly traded companies,	161
including utilities, that face comparable business and financial	162
risk, with such adjustments for capital structure as may be	163
appropriate. The burden of proof for demonstrating that	164
significantly excessive earnings will not occur shall be on the	165
electric distribution utility.	166

Additionally, the commission may adjust the electric	167
distribution utility's most recent standard service offer price by	168
such just and reasonable amount that the commission determines	169
necessary to address any emergency that threatens the utility's	170
financial integrity or to ensure that the resulting revenue	171
available to the utility for providing the standard service offer	172
is not so inadequate as to result, directly or indirectly, in a	173
taking of property without compensation pursuant to Section 19 of	174
Article I, Ohio Constitution. The electric distribution utility	175
has the burden of demonstrating that any adjustment to its most	176
recent standard service offer price is proper in accordance with	177
this division.	178

(E) Beginning in the second year of a blended price under	179
division (D) of this section and notwithstanding any other	180
requirement of this section, the commission may alter	181
prospectively the proportions specified in that division to	182
mitigate any effect of an abrupt or significant change in the	183
electric distribution utility's standard service offer price that	184
would otherwise result in general or with respect to any rate	185
group or rate schedule but for such alteration. Any such	186
alteration shall be made not more often than annually, and the	187
commission shall not, by altering those proportions and in any	188
event, including because of the length of time, as authorized	189
under division (C) of this section, taken to approve the market	190
rate offer, cause the duration of the blending period to exceed	191
ten years as counted from the effective date of the approved	192
market rate offer. Additionally, any such alteration shall be	193
limited to an alteration affecting the prospective proportions	194
used during the blending period and shall not affect any blending	195
proportion previously approved and applied by the commission under	196
this division.	197

(F) An electric distribution utility that has received	198
commission approval of its first application under division (C) of	199
this section shall not, nor ever shall be authorized or required	200
by the commission to, file an application under section 4928.143	201
of the Revised Code.	202

Sec. 4928.143. (A) For the purpose of complying with section	203
4928.141 of the Revised Code, an electric distribution utility may	204
file an application for public utilities commission approval of an	205
electric security plan as prescribed under division (B) of this	206
section. The utility may file that application prior to the	207
effective date of any rules the commission may adopt for the	208
purpose of this section, and, as the commission determines	209
necessary, the utility immediately shall conform its filing to	210
those rules upon their taking effect.	211

(B) Notwithstanding any other provision of Title XLIX of the	212
Revised Code to the contrary except division (D) of this section,	213
divisions (I), (J), and (K) of section 4928.20, division (E) of	214
section 4928.64, and section 4928.69 of the Revised Code:	215

(1) An electric security plan shall include provisions	216
relating to the supply and pricing of electric generation service.	217
In addition, if the proposed electric security plan has a term	218
longer than three years, it may include provisions in the plan to	219
permit the commission to test the plan pursuant to division (E) of	220
this section and any transitional conditions that should be	221
adopted by the commission if the commission terminates the plan as	222
authorized under that division.	223

(2) The plan may provide for or include, without limitation,	224
any of the following:	225

(a) Automatic recovery of any of the following costs of the	226
electric distribution utility, provided the cost is prudently	227
incurred: the cost of fuel used to generate the electricity	228
supplied under the offer; the cost of purchased power supplied	229
under the offer, including the cost of energy and capacity, and	230
including purchased power acquired from an affiliate; the cost of	231
emission allowances; and the cost of federally mandated carbon or	232
energy taxes;	233

(b) A reasonable allowance for construction work in progress	234
for any of the electric distribution utility's cost of	235
constructing an electric generating facility or for an	236
environmental expenditure for any electric generating facility of	237
the electric distribution utility, provided the cost is incurred	238
or the expenditure occurs on or after January 1, 2009. Any such	239
allowance shall be subject to the construction work in progress	240
allowance limitations of division (A) of section 4909.15 of the	241
Revised Code, except that the commission may authorize such an	242
allowance upon the incurrence of the cost or occurrence of the	243
expenditure. No such allowance for generating facility	244
construction shall be authorized, however, unless the commission	245
first determines in the proceeding that there is need for the	246
facility based on resource planning projections submitted by the	247
electric distribution utility. Further, no such allowance shall be	248
authorized unless the facility's construction was sourced through	249
a competitive bid process, regarding which process the commission	250
may adopt rules. An allowance approved under division (B)(2)(b) of	251
this section shall be established as a nonbypassable surcharge for	252
the life of the facility.	253

(c) The establishment of a nonbypassable surcharge for the	254
life of an electric generating facility that is owned or operated	255
by the electric distribution utility, was sourced through a	256
competitive bid process subject to any such rules as the	257
commission adopts under division (B)(2)(b) of this section, and is	258
newly used and useful on or after January 1, 2009, which surcharge	259
shall cover all costs of the utility specified in the application,	260
excluding costs recovered through a surcharge under division	261
(B)(2)(b) of this section. However, no surcharge shall be	262
authorized unless the commission first determines in the	263
proceeding that there is need for the facility based on resource	264
planning projections submitted by the electric distribution	265
utility. Additionally, if a surcharge is authorized for a facility	266
pursuant to plan approval under division (C) of this section and	267
as a condition of the continuation of the surcharge, the electric	268
distribution utility shall dedicate to Ohio consumers the capacity	269
and energy and the rate associated with the cost of that facility.	270
Before the commission authorizes any surcharge pursuant to this	271
division, it may consider, as applicable, the effects of any	272
decommissioning, deratings, and retirements.	273

(d) Terms, conditions, or charges relating to limitations on	274
customer shopping for retail electric generation service,	275
bypassability, standby, back-up, or supplemental power service,	276
default service, carrying costs, amortization periods, and	277
accounting or deferrals, including future recovery of such	278
deferrals, as would have the effect of stabilizing or providing	279
certainty regarding retail electric service;	280

(e) Automatic increases or decreases in any component of the	281
standard service offer price;	282

(f) Consistent with sections 4928.23 to 4928.2318 of the	283
Revised Code, both of the following:	284

(i) Provisions for the electric distribution utility to	285
securitize any phase-in, inclusive of carrying charges, of the	286
utility's standard service offer price, which phase-in is	287
authorized in accordance with section 4928.144 of the Revised	288
Code;	289

(ii) Provisions for the recovery of the utility's cost of	290
securitization.	291

(g) Provisions relating to transmission, ancillary,	292
congestion, or any related service required for the standard	293
service offer, including provisions for the recovery of any cost	294
of such service that the electric distribution utility incurs on	295
or after that date pursuant to the standard service offer;	296

(h) Provisions regarding the utility's distribution service,	297
including, without limitation and notwithstanding any provision of	298
Title XLIX of the Revised Code to the contrary, provisions	299
regarding single issue ratemaking, a revenue decoupling mechanism	300
or any other incentive ratemaking, and provisions regarding	301
distribution infrastructure and modernization incentives for the	302
electric distribution utility. The latter may include a long-term	303
energy delivery infrastructure modernization plan for that utility	304
or any plan providing for the utility's recovery of costs,	305
including lost revenue, shared savings, and avoided costs, and a	306
just and reasonable rate of return on such infrastructure	307
modernization. As part of its determination as to whether to allow	308
in an electric distribution utility's electric security plan	309
inclusion of any provision described in division (B)(2)(h) of this	310
section, the commission shall examine the reliability of the	311
electric distribution utility's distribution system and ensure	312
that customers' and the electric distribution utility's	313
expectations are aligned and that the electric distribution	314
utility is placing sufficient emphasis on and dedicating	315
sufficient resources to the reliability of its distribution	316
system.	317

(i) Provisions under which the electric distribution utility	318
may implement economic development, job retention, and energy	319
efficiency programs, which provisions may allocate program costs	320
across all classes of customers of the utility and those of	321
electric distribution utilities in the same holding company	322
system.	323

(C)(1) The burden of proof in the proceeding shall be on the	324
electric distribution utility. The commission shall issue an order	325
under this division for an initial application under this section	326
not later than one hundred fifty days after the application's	327
filing date and, for any subsequent application by the utility	328
under this section, not later than two hundred seventy-five days	329
after the application's filing date. Subject to division (D) of	330
this section, the commission by order shall approve or modify and	331
approve an application filed under division (A) of this section if	332
it finds that the electric security plan so approved, including	333
its pricing and all other terms and conditions, including any	334
deferrals and any future recovery of deferrals, is more favorable	335
in the aggregate as compared to the expected results that would	336
otherwise apply under section 4928.142 of the Revised Code.	337
Additionally, if the commission so approves an application that	338
contains a surcharge under division (B)(2)(b) or (c) of this	339
section, the commission shall ensure that the benefits derived for	340
any purpose for which the surcharge is established are reserved	341
and made available to those that bear the surcharge. Otherwise,	342
the commission by order shall disapprove the application.	343

(2)(a) If the commission modifies and approves an application	344
under division (C)(1) of this section, the electric distribution	345
utility may withdraw the application, thereby terminating it, and	346
may file a new standard service offer under this section or a	347
standard service offer under section 4928.142 of the Revised Code.	348

(b) If the utility terminates an application pursuant to	349
division (C)(2)(a) of this section or if the commission	350
disapproves an application under division (C)(1) of this section,	351
the commission shall issue such order as is necessary to continue	352
the provisions, terms, and conditions of the utility's most recent	353
standard service offer, along with any expected increases or	354
decreases in fuel costs from those contained in that offer, until	355
a subsequent offer is authorized pursuant to this section or	356
section 4928.142 of the Revised Code, respectively.	357

(D) Regarding the rate plan requirement of division (A) of	358
section 4928.141 of the Revised Code, if an electric distribution	359
utility that has a rate plan that extends beyond December 31,	360
2008, files an application under this section for the purpose of	361
its compliance with division (A) of section 4928.141 of the	362
Revised Code, that rate plan and its terms and conditions are	363
hereby incorporated into its proposed electric security plan and	364
shall continue in effect until the date scheduled under the rate	365
plan for its expiration, and that portion of the electric security	366
plan shall not be subject to commission approval or disapproval	367
under division (C) of this section, and the earnings test provided	368
for in division (F) of this section shall not apply until after	369
the expiration of the rate plan. However, that utility may include	370
in its electric security plan under this section, and the	371
commission may approve, modify and approve, or disapprove subject	372
to division (C) of this section, provisions for the incremental	373
recovery or the deferral of any costs that are not being recovered	374
under the rate plan and that the utility incurs during that	375
continuation period to comply with section 4928.141, division (B)	376
of section 4928.64,of the Revised Code or division (A) of section	377
4928.66 of the Revised Code.	378

(E) If an electric security plan approved under division (C)	379
of this section, except one withdrawn by the utility as authorized	380
under that division, has a term, exclusive of phase-ins or	381
deferrals, that exceeds three years from the effective date of the	382
plan, the commission shall test the plan in the fourth year, and	383
if applicable, every fourth year thereafter, to determine whether	384
the plan, including its then-existing pricing and all other terms	385
and conditions, including any deferrals and any future recovery of	386
deferrals, continues to be more favorable in the aggregate and	387
during the remaining term of the plan as compared to the expected	388
results that would otherwise apply under section 4928.142 of the	389
Revised Code. The commission shall also determine the prospective	390
effect of the electric security plan to determine if that effect	391
is substantially likely to provide the electric distribution	392
utility with a return on common equity that is significantly in	393
excess of the return on common equity that is likely to be earned	394
by publicly traded companies, including utilities, that face	395
comparable business and financial risk, with such adjustments for	396
capital structure as may be appropriate. The burden of proof for	397
demonstrating that significantly excessive earnings will not occur	398
shall be on the electric distribution utility. If the test results	399
are in the negative or the commission finds that continuation of	400
the electric security plan will result in a return on equity that	401
is significantly in excess of the return on common equity that is	402
likely to be earned by publicly traded companies, including	403
utilities, that will face comparable business and financial risk,	404
with such adjustments for capital structure as may be appropriate,	405
during the balance of the plan, the commission may terminate the	406
electric security plan, but not until it shall have provided	407
interested parties with notice and an opportunity to be heard. The	408
commission may impose such conditions on the plan's termination as	409
it considers reasonable and necessary to accommodate the	410
transition from an approved plan to the more advantageous	411
alternative. In the event of an electric security plan's	412
termination pursuant to this division, the commission shall permit	413
the continued deferral and phase-in of any amounts that occurred	414
prior to that termination and the recovery of those amounts as	415
contemplated under that electric security plan.	416

(F) With regard to the provisions that are included in an	417
electric security plan under this section, the commission shall	418
consider, following the end of each annual period of the plan, if	419
any such adjustments resulted in excessive earnings as measured by	420
whether the earned return on common equity of the electric	421
distribution utility is significantly in excess of the return on	422
common equity that was earned during the same period by publicly	423
traded companies, including utilities, that face comparable	424
business and financial risk, with such adjustments for capital	425
structure as may be appropriate. Consideration also shall be given	426
to the capital requirements of future committed investments in	427
this state. The burden of proof for demonstrating that	428
significantly excessive earnings did not occur shall be on the	429
electric distribution utility. If the commission finds that such	430
adjustments, in the aggregate, did result in significantly	431
excessive earnings, it shall require the electric distribution	432
utility to return to consumers the amount of the excess by	433
prospective adjustments; provided that, upon making such	434
prospective adjustments, the electric distribution utility shall	435
have the right to terminate the plan and immediately file an	436
application pursuant to section 4928.142 of the Revised Code. Upon	437
termination of a plan under this division, rates shall be set on	438
the same basis as specified in division (C)(2)(b) of this section,	439
and the commission shall permit the continued deferral and	440
phase-in of any amounts that occurred prior to that termination	441
and the recovery of those amounts as contemplated under that	442
electric security plan. In making its determination of	443
significantly excessive earnings under this division, the	444
commission shall not consider, directly or indirectly, the	445
revenue, expenses, or earnings of any affiliate or parent company.	446

Sec. 4928.20.  (A) The legislative authority of a municipal	447
corporation may adopt an ordinance, or the board of township	448
trustees of a township or the board of county commissioners of a	449
county may adopt a resolution, under which, on or after the	450
starting date of competitive retail electric service, it may	451
aggregate in accordance with this section the retail electrical	452
loads located, respectively, within the municipal corporation,	453
township, or unincorporated area of the county and, for that	454
purpose, may enter into service agreements to facilitate for those	455
loads the sale and purchase of electricity. The legislative	456
authority or board also may exercise such authority jointly with	457
any other such legislative authority or board. For customers that	458
are not mercantile customers, an ordinance or resolution under	459
this division shall specify whether the aggregation will occur	460
only with the prior, affirmative consent of each person owning,	461
occupying, controlling, or using an electric load center proposed	462
to be aggregated or will occur automatically for all such persons	463
pursuant to the opt-out requirements of division (D) of this	464
section. The aggregation of mercantile customers shall occur only	465
with the prior, affirmative consent of each such person owning,	466
occupying, controlling, or using an electric load center proposed	467
to be aggregated. Nothing in this division, however, authorizes	468
the aggregation of the retail electric loads of an electric load	469
center, as defined in section 4933.81 of the Revised Code, that is	470
located in the certified territory of a nonprofit electric	471
supplier under sections 4933.81 to 4933.90 of the Revised Code or	472
an electric load center served by transmission or distribution	473
facilities of a municipal electric utility.	474

(B) If an ordinance or resolution adopted under division (A)	475
of this section specifies that aggregation of customers that are	476
not mercantile customers will occur automatically as described in	477
that division, the ordinance or resolution shall direct the board	478
of elections to submit the question of the authority to aggregate	479
to the electors of the respective municipal corporation, township,	480
or unincorporated area of a county at a special election on the	481
day of the next primary or general election in the municipal	482
corporation, township, or county. The legislative authority or	483
board shall certify a copy of the ordinance or resolution to the	484
board of elections not less than ninety days before the day of the	485
special election. No ordinance or resolution adopted under	486
division (A) of this section that provides for an election under	487
this division shall take effect unless approved by a majority of	488
the electors voting upon the ordinance or resolution at the	489
election held pursuant to this division.	490

(C) Upon the applicable requisite authority under divisions	491
(A) and (B) of this section, the legislative authority or board	492
shall develop a plan of operation and governance for the	493
aggregation program so authorized. Before adopting a plan under	494
this division, the legislative authority or board shall hold at	495
least two public hearings on the plan. Before the first hearing,	496
the legislative authority or board shall publish notice of the	497
hearings once a week for two consecutive weeks in a newspaper of	498
general circulation in the jurisdiction or as provided in section	499
7.16 of the Revised Code. The notice shall summarize the plan and	500
state the date, time, and location of each hearing.	501

(D) No legislative authority or board, pursuant to an	502
ordinance or resolution under divisions (A) and (B) of this	503
section that provides for automatic aggregation of customers that	504
are not mercantile customers as described in division (A) of this	505
section, shall aggregate the electrical load of any electric load	506
center located within its jurisdiction unless it in advance	507
clearly discloses to the person owning, occupying, controlling, or	508
using the load center that the person will be enrolled	509
automatically in the aggregation program and will remain so	510
enrolled unless the person affirmatively elects by a stated	511
procedure not to be so enrolled. The disclosure shall state	512
prominently the rates, charges, and other terms and conditions of	513
enrollment. The stated procedure shall allow any person enrolled	514
in the aggregation program the opportunity to opt out of the	515
program every three years, without paying a switching fee. Any	516
such person that opts out before the commencement of the	517
aggregation program pursuant to the stated procedure shall default	518
to the standard service offer provided under section 4928.14 or	519
division (D) of section 4928.35 of the Revised Code until the	520
person chooses an alternative supplier.	521

(E)(1) With respect to a governmental aggregation for a	522
municipal corporation that is authorized pursuant to divisions (A)	523
to (D) of this section, resolutions may be proposed by initiative	524
or referendum petitions in accordance with sections 731.28 to	525
731.41 of the Revised Code.	526

(2) With respect to a governmental aggregation for a township	527
or the unincorporated area of a county, which aggregation is	528
authorized pursuant to divisions (A) to (D) of this section,	529
resolutions may be proposed by initiative or referendum petitions	530
in accordance with sections 731.28 to 731.40 of the Revised Code,	531
except that:	532

(a) The petitions shall be filed, respectively, with the	533
township fiscal officer or the board of county commissioners, who	534
shall perform those duties imposed under those sections upon the	535
city auditor or village clerk.	536

(b) The petitions shall contain the signatures of not less	537
than ten per cent of the total number of electors in,	538
respectively, the township or the unincorporated area of the	539
county who voted for the office of governor at the preceding	540
general election for that office in that area.	541

(F) A governmental aggregator under division (A) of this	542
section is not a public utility engaging in the wholesale purchase	543
and resale of electricity, and provision of the aggregated service	544
is not a wholesale utility transaction. A governmental aggregator	545
shall be subject to supervision and regulation by the public	546
utilities commission only to the extent of any competitive retail	547
electric service it provides and commission authority under this	548
chapter.	549

(G) This section does not apply in the case of a municipal	550
corporation that supplies such aggregated service to electric load	551
centers to which its municipal electric utility also supplies a	552
noncompetitive retail electric service through transmission or	553
distribution facilities the utility singly or jointly owns or	554
operates.	555

(H) A governmental aggregator shall not include in its	556
aggregation the accounts of any of the following:	557

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

558

(2) A customer in contract with a certified electric services	559
company;	560

(3) A customer that has a special contract with an electric	561
distribution utility;	562

(4) A customer that is not located within the governmental	563
aggregator's governmental boundaries;	564

(5) Subject to division (C) of section 4928.21 of the Revised	565
Code, a customer who appears on the "do not aggregate" list	566
maintained under that section.	567

(I) Customers that are part of a governmental aggregation	568
under this section shall be responsible only for such portion of a	569
surcharge under section 4928.144 of the Revised Code that is	570
proportionate to the benefits, as determined by the commission,	571
that electric load centers within the jurisdiction of the	572
governmental aggregation as a group receive. The proportionate	573
surcharge so established shall apply to each customer of the	574
governmental aggregation while the customer is part of that	575
aggregation. If a customer ceases being such a customer, the	576
otherwise applicable surcharge shall apply. Nothing in this	577
section shall result in less than full recovery by an electric	578
distribution utility of any surcharge authorized under section	579
4928.144 of the Revised Code. Nothing in this section shall result	580
in less than the full and timely imposition, charging, collection,	581
and adjustment by an electric distribution utility, its assignee,	582
or any collection agent, of the phase-in-recovery charges	583
authorized pursuant to a final financing order issued pursuant to	584
sections 4928.23 to 4928.2318 of the Revised Code.	585

(J) On behalf of the customers that are part of a	586
governmental aggregation under this section and by filing written	587
notice with the public utilities commission, the legislative	588
authority that formed or is forming that governmental aggregation	589
may elect not to receive standby service within the meaning of	590
division (B)(2)(d) of section 4928.143 of the Revised Code from an	591
electric distribution utility in whose certified territory the	592
governmental aggregation is located and that operates under an	593
approved electric security plan under that section. Upon the	594
filing of that notice, the electric distribution utility shall not	595
charge any such customer to whom competitive retail electric	596
generation service is provided by another supplier under the	597
governmental aggregation for the standby service. Any such	598
consumer that returns to the utility for competitive retail	599
electric service shall pay the market price of power incurred by	600
the utility to serve that consumer plus any amount attributable to	601
the utility's cost of compliance with the alternative energy	602
resource provisions of section 4928.64 of the Revised Code to	603
serve the consumer. Such market price shall include, but not be	604
limited to, capacity and energy charges; all charges associated	605
with the provision of that power supply through the regional	606
transmission organization, including, but not limited to,	607
transmission, ancillary services, congestion, and settlement and	608
administrative charges; and all other costs incurred by the	609
utility that are associated with the procurement, provision, and	610
administration of that power supply, as such costs may be approved	611
by the commission. The period of time during which the market	612
price and alternative energy resource amount shall be so assessed	613
on the consumer shall be from the time the consumer so returns to	614
the electric distribution utility until the expiration of the	615
electric security plan. However, if that period of time is	616
expected to be more than two years, the commission may reduce the	617
time period to a period of not less than two years.	618

(K) The commission shall adopt rules to encourage and promote	619
large-scale governmental aggregation in this state. For that	620
purpose, the commission shall conduct an immediate review of any	621
rules it has adopted for the purpose of this section that are in	622
effect on the effective date of the amendment of this section by	623
S.B. 221 of the 127th general assembly, July 31, 2008. Further,	624
within the context of an electric security plan under section	625
4928.143 of the Revised Code, the commission shall consider the	626
effect on large-scale governmental aggregation of any	627
nonbypassable generation charges, however collected, that would be	628
established under that plan, except any nonbypassable generation	629
charges that relate to any cost incurred by the electric	630
distribution utility, the deferral of which has been authorized by	631
the commission prior to the effective date of the amendment of	632
this section by S.B. 221 of the 127th general assembly, July 31,	633
2008.	634

Sec. 4928.61.  (A) There is hereby established in the state	635
treasury the advanced energy fund, into which shall be deposited	636
all advanced energy revenues remitted to the director of	637
development under division (B) of this section, for the exclusive	638
purposes of funding the advanced energy program created under	639
section 4928.62 of the Revised Code and paying the program's	640
administrative costs. Interest on the fund shall be credited to	641
the fund.	642

(B) Advanced energy revenues shall include all of the	643
following:	644

(1) Revenues remitted to the director after collection by	645
each electric distribution utility in this state of a temporary	646
rider on retail electric distribution service rates as such rates	647
are determined by the public utilities commission pursuant to this	648
chapter. The rider shall be a uniform amount statewide, determined	649
by the director of development, after consultation with the public	650
benefits advisory board created by section 4928.58 of the Revised	651
Code. The amount shall be determined by dividing an aggregate	652
revenue target for a given year as determined by the director,	653
after consultation with the advisory board, by the number of	654
customers of electric distribution utilities in this state in the	655
prior year. Such aggregate revenue target shall not exceed more	656
than fifteen million dollars in any year through 2005 and shall	657
not exceed more than five million dollars in any year after 2005.	658
The rider shall be imposed beginning on the effective date of the	659
amendment of this section by Sub. H.B. 251 of the 126th general	660
assembly, January 4, 2007, and shall terminate at the end of ten	661
years following the starting date of competitive retail electric	662
service or until the advanced energy fund, including interest,	663
reaches one hundred million dollars, whichever is first.	664

(2) Revenues from payments, repayments, and collections under	665
the advanced energy program and from program income;	666

(3) Revenues remitted to the director after collection by a	667
municipal electric utility or electric cooperative in this state	668
upon the utility's or cooperative's decision to participate in the	669
advanced energy fund;	670

(4) Revenues from renewable energy compliance payments as	671
provided under division (C)(2) of section 4928.64 of the Revised	672
Code;	673

(5) Revenue from forfeitures under division (C) of section	674
4928.66 of the Revised Code;	675

(6)(5) Funds transferred pursuant to division (B) of Section	676
512.10 of S.B. 315 of the 129th general assembly;	677

(7)(6) Interest earnings on the advanced energy fund.

678

(C)(1) Each electric distribution utility in this state shall	679
remit to the director on a quarterly basis the revenues described	680
in divisions (B)(1) and (2) of this section. Such remittances	681
shall occur within thirty days after the end of each calendar	682
quarter.	683

(2) Each participating electric cooperative and participating	684
municipal electric utility shall remit to the director on a	685
quarterly basis the revenues described in division (B)(3) of this	686
section. Such remittances shall occur within thirty days after the	687
end of each calendar quarter. For the purpose of division (B)(3)	688
of this section, the participation of an electric cooperative or	689
municipal electric utility in the energy efficiency revolving loan	690
program as it existed immediately prior to the effective date of	691
the amendment of this section by Sub. H.B. 251 of the 126th	692
general assembly, January 4, 2007, does not constitute a decision	693
to participate in the advanced energy fund under this section as	694
so amended.	695

(3) All remittances under divisions (C)(1) and (2) of this	696
section shall continue only until the end of ten years following	697
the starting date of competitive retail electric service or until	698
the advanced energy fund, including interest, reaches one hundred	699
million dollars, whichever is first.	700

(D) Any moneys collected in rates for non-low-income customer	701
energy efficiency programs, as of October 5, 1999, and not	702
contributed to the energy efficiency revolving loan fund	703
authorized under this section prior to the effective date of its	704
amendment by Sub. H.B. 251 of the 126th general assembly, January	705
4, 2007, shall be used to continue to fund cost-effective,	706
residential energy efficiency programs, be contributed into the	707
universal service fund as a supplement to that required under	708
section 4928.53 of the Revised Code, or be returned to ratepayers	709
in the form of a rate reduction at the option of the affected	710
electric distribution utility.	711

Sec. 4928.62.  (A) There is hereby created the advanced	712
energy program, which shall be administered by the director of	713
development. Under the program, the director may authorize the use	714
of moneys in the advanced energy fund for financial, technical,	715
and related assistance for advanced energy projects in this state	716
or for economic development assistance, in furtherance of the	717
purposes set forth in section 4928.63 of the Revised Code.	718

(1) To the extent feasible given approved applications for	719
assistance, the assistance shall be distributed among the	720
certified territories of electric distribution utilities and	721
participating electric cooperatives, and among the service areas	722
of participating municipal electric utilities, in amounts	723
proportionate to the remittances of each utility and cooperative	724
under divisions (B)(1) and (3) of section 4928.61 of the Revised	725
Code.	726

(2) The funds described in division (B)(6)(5) of section	727
4928.61 of the Revised Code shall not be subject to the	728
territorial requirements of division (A)(1) of this section.	729

(3) The director shall not authorize financial assistance for	730
an advanced energy project under the program unless the director	731
first determines that the project will create new jobs or preserve	732
existing jobs in this state or use innovative technologies or	733
materials.	734

(B) In carrying out sections 4928.61 to 4928.63 of the	735
Revised Code, the director may do all of the following to further	736
the public interest in advanced energy projects and economic	737
development:	738

(1) Award grants, contracts, loans, loan participation	739
agreements, linked deposits, and energy production incentives;	740

(2) Acquire in the name of the director any property of any	741
kind or character in accordance with this section, by purchase,	742
purchase at foreclosure, or exchange, on such terms and in such	743
manner as the director considers proper;	744

(3) Make and enter into all contracts and agreements	745
necessary or incidental to the performance of the director's	746
duties and the exercise of the director's powers under sections	747
4928.61 to 4928.63 of the Revised Code;	748

(4) Employ or enter into contracts with financial	749
consultants, marketing consultants, consulting engineers,	750
architects, managers, construction experts, attorneys, technical	751
monitors, energy evaluators, or other employees or agents as the	752
director considers necessary, and fix their compensation;	753

(5) Adopt rules prescribing the application procedures for	754
financial assistance under the advanced energy program; the fees,	755
charges, interest rates, payment schedules, local match	756
requirements, and other terms and conditions of any grants,	757
contracts, loans, loan participation agreements, linked deposits,	758
and energy production incentives; criteria pertaining to the	759
eligibility of participating lending institutions; and any other	760
matters necessary for the implementation of the program;	761

(6) Do all things necessary and appropriate for the operation	762
of the program.	763

(C) The department of development may hold ownership to any	764
unclaimed energy efficiency and renewable energy emission	765
allowances provided for in Chapter 3745-14 of the Administrative	766
Code or otherwise, that result from advanced energy projects that	767
receive funding from the advanced energy fund, and it may use the	768
allowances to further the public interest in advanced energy	769
projects or for economic development.	770

(D) Financial statements, financial data, and trade secrets	771
submitted to or received by the director from an applicant or	772
recipient of financial assistance under sections 4928.61 to	773
4928.63 of the Revised Code, or any information taken from those	774
statements, data, or trade secrets for any purpose, are not public	775
records for the purpose of section 149.43 of the Revised Code.	776

(E) Nothing in the amendments of sections 4928.61, 4928.62,	777
and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th	778
general assembly shall affect any pending or effected assistance,	779
pending or effected purchases or exchanges of property made, or	780
pending or effected contracts or agreements entered into pursuant	781
to division (A) or (B) of this section as the section existed	782
prior to the effective date of those amendments, January 4, 2007,	783
or shall affect the exemption provided under division (C) of this	784
section as the section existed prior to that effective date.	785

(F) Any assistance a school district receives for an advanced	786
energy project, including a geothermal heating, ventilating, and	787
air conditioning system, shall be in addition to any assistance	788
provided under Chapter 3318. of the Revised Code and shall not be	789
included as part of the district or state portion of the basic	790
project cost under that chapter.	791

Sec. 5501.311.  (A) As used in this section, "alternative	792
energy generating facility" means a facility that uses advanced	793
energy or renewable energy resources to produce electricity.	794
"Advanced energy resource" and "renewable energy resources" have	795
the same meaning as in section 4928.01 of the Revised Code.	796

(B) Notwithstanding sections 123.01 and 127.16 of the Revised	797
Code the director of transportation may lease or lease-purchase	798
all or any part of a transportation facility to or from one or	799
more persons, one or more governmental agencies, a transportation	800
improvement district, or any combination thereof, and may grant	801
leases, easements, or licenses for lands under the control of the	802
department of transportation. The director may adopt rules	803
necessary to give effect to this section.	804

(B)(C) Plans and specifications for the construction of a	805
transportation facility under a lease or lease-purchase agreement	806
are subject to approval of the director and must meet or exceed	807
all applicable standards of the department.	808

(C)(D) Any lease or lease-purchase agreement under which the	809
department is the lessee shall be for a period not exceeding the	810
then current two-year period for which appropriations have been	811
made by the general assembly to the department, and such agreement	812
may contain such other terms as the department and the other	813
parties thereto agree, notwithstanding any other provision of law,	814
including provisions that rental payments in amounts sufficient to	815
pay bond service charges payable during the current two-year lease	816
term shall be an absolute and unconditional obligation of the	817
department independent of all other duties under the agreement	818
without set-off or deduction or any other similar rights or	819
defenses. Any such agreement may provide for renewal of the	820
agreement at the end of each term for another term, not exceeding	821
two years, provided that no renewal shall be effective until the	822
effective date of an appropriation enacted by the general assembly	823
from which the department may lawfully pay rentals under such	824
agreement. Any such agreement may include, without limitation, any	825
agreement by the department with respect to any costs of	826
transportation facilities to be included prior to acquisition and	827
construction of such transportation facilities. Any such agreement	828
shall not constitute a debt or pledge of the faith and credit of	829
the state, or of any political subdivision of the state, and the	830
lessor shall have no right to have taxes or excises levied by the	831
general assembly, or the taxing authority of any political	832
subdivision of the state, for the payment of rentals thereunder.	833
Any such agreement shall contain a statement to that effect.	834

(D)(E) A municipal corporation, township, or county may use	835
service payments in lieu of taxes credited to special funds or	836
accounts pursuant to sections 5709.43, 5709.75, and 5709.80 of the	837
Revised Code to provide its contribution to the cost of a	838
transportation facility, provided such facility was among the	839
purposes for which such service payments were authorized. The	840
contribution may be in the form of a lump sum or periodic	841
payments.	842

(E)(F) Pursuant to the "Telecommunications Act of 1996," 110	843
Stat. 152, 47 U.S.C. 332 note, the director may grant a lease,	844
easement, or license in a transportation facility to a	845
telecommunications service provider for construction, placement,	846
or operation of a telecommunications facility. An interest granted	847
under this division is subject to all of the following conditions:	848

(1) The transportation facility is owned in fee simple or	849
easement by this state at the time the lease, easement, or license	850
is granted to the telecommunications provider.	851

(2) The lease, easement, or license shall be granted on a	852
competitive basis in accordance with policies and procedures to be	853
determined by the director. The policies and procedures may	854
include provisions for master leases for multiple sites.	855

(3) The telecommunications facility shall be designed to	856
accommodate the state's multi-agency radio communication system,	857
the intelligent transportation system, and the department's	858
communication system as the director may determine is necessary	859
for highway or other departmental purposes.	860

(4) The telecommunications facility shall be designed to	861
accommodate such additional telecommunications equipment as may	862
feasibly be co-located thereon as determined in the discretion of	863
the director.	864

(5) The telecommunications service providers awarded the	865
lease, easement, or license, agree to permit other	866
telecommunications service providers to co-locate on the	867
telecommunications facility, and agree to the terms and conditions	868
of the co-location as determined in the discretion of the	869
director.	870

(6) The director shall require indemnity agreements in favor	871
of the department as a condition of any lease, easement, or	872
license granted under this division. Each indemnity agreement	873
shall secure this state and its agents from liability for damages	874
arising out of safety hazards, zoning, and any other matter of	875
public interest the director considers necessary.	876

(7) The telecommunications service provider fully complies	877
with any permit issued under section 5515.01 of the Revised Code	878
pertaining to land that is the subject of the lease, easement, or	879
license.	880

(8) All plans and specifications shall meet with the	881
director's approval.	882

(9) Any other conditions the director determines necessary.

883

(F)(G) In accordance with section 5501.031 of the Revised	884
Code, to further efforts to promote energy conservation and energy	885
efficiency, the director may grant a lease, easement, or license	886
in a transportation facility to a utility service provider that	887
has received its certificate from the Ohio power siting board or	888
appropriate local entity for construction, placement, or operation	889
of an alternative energy generating facility service provider as	890
defined in section 4928.64 of the Revised Code. An interest	891
granted under this division is subject to all of the following	892
conditions:	893

(1) The transportation facility is owned in fee simple or in	894
easement by this state at the time the lease, easement, or license	895
is granted to the utility service provider.	896

(2) The lease, easement, or license shall be granted on a	897
competitive basis in accordance with policies and procedures to be	898
determined by the director. The policies and procedures may	899
include provisions for master leases for multiple sites.	900

(3) The alternative energy generating facility shall be	901
designed to provide energy for the department's transportation	902
facilities with the potential for selling excess power on the	903
power grid, as the director may determine is necessary for highway	904
or other departmental purposes.	905

(4) The director shall require indemnity agreements in favor	906
of the department as a condition of any lease, easement, or	907
license granted under this division. Each indemnity agreement	908
shall secure this state from liability for damages arising out of	909
safety hazards, zoning, and any other matter of public interest	910
the director considers necessary.	911

(5) The alternative energy servicegenerating facility and	912
utility service provider fully compliescomply with any permit	913
issued by the Ohio power siting board under Chapter 4906. of the	914
Revised Code and compliescomply with section 5515.01 of the	915
Revised Code pertaining to land that is the subject of the lease,	916
easement, or license.	917

(6) All plans and specifications shall meet with the	918
director's approval.	919

(7) Any other conditions the director determines necessary.

920

(G)(H) Money the department receives under divisions (E) and	921
(F) and (G) of this section shall be deposited into the state	922
treasury to the credit of the highway operating fund.	923

(H)(I) A lease, easement, or license granted under division	924
(E) or (F) or (G) of this section, and any telecommunications	925
facility or alternative energy generating facility relating to	926
such interest in a transportation facility, is hereby deemed to	927
further the essential highway purpose of building and maintaining	928
a safe, energy-efficient, and accessible transportation system.	929

Sec. 5727.75.  (A) For purposes of this section:

930

(1) "Qualified energy project" means an energy project	931
certified by the director of development pursuant to this section.	932

(2) "Energy project" means a project to provide electric	933
power through the construction, installation, and use of an energy	934
facility.	935

(3) "Alternative energy zone" means a county declared as such	936
by the board of county commissioners under division (E)(1)(b) or	937
(c) of this section.	938

(4) "Full-time equivalent employee" means the total number of	939
employee-hours for which compensation was paid to individuals	940
employed at a qualified energy project for services performed at	941
the project during the calendar year divided by two thousand	942
eighty hours.	943

(5) "Solar energy project" means an energy project composed	944
of an energy facility using solar panels to generate electricity.	945

(B)(1) Tangible personal property of a qualified energy	946
project using renewable energy resources is exempt from taxation	947
for tax years 2011, 2012, 2013, and 2014 if all of the following	948
conditions are satisfied:	949

(a) On or before December 31, 2013, the owner or a lessee	950
pursuant to a sale and leaseback transaction of the project	951
submits an application to the power siting board for a certificate	952
under section 4906.20 of the Revised Code, or if that section does	953
not apply, submits an application for any approval, consent,	954
permit, or certificate or satisfies any condition required by a	955
public agency or political subdivision of this state for the	956
construction or initial operation of an energy project.	957

(b) Construction or installation of the energy facility	958
begins on or after January 1, 2009, and before January 1, 2014.	959
For the purposes of this division, construction begins on the	960
earlier of the date of application for a certificate or other	961
approval or permit described in division (B)(1)(a) of this	962
section, or the date the contract for the construction or	963
installation of the energy facility is entered into.	964

(c) For a qualified energy project with a nameplate capacity	965
of five megawatts or greater, a board of county commissioners of a	966
county in which property of the project is located has adopted a	967
resolution under division (E)(1)(b) or (c) of this section to	968
approve the application submitted under division (E) of this	969
section to exempt the property located in that county from	970
taxation. A board's adoption of a resolution rejecting an	971
application or its failure to adopt a resolution approving the	972
application does not affect the tax-exempt status of the qualified	973
energy project's property that is located in another county.	974

(2) If tangible personal property of a qualified energy	975
project using renewable energy resources was exempt from taxation	976
under this section beginning in any of tax years 2011, 2012, 2013,	977
or 2014, and the certification under division (E)(2) of this	978
section has not been revoked, the tangible personal property of	979
the qualified energy project is exempt from taxation for tax year	980
2015 and all ensuing tax years if the property was placed into	981
service before January 1, 2015, as certified in the construction	982
progress report required under division (F)(2) of this section.	983
Tangible personal property that has not been placed into service	984
before that date is taxable property subject to taxation. An	985
energy project for which certification has been revoked is	986
ineligible for further exemption under this section. Revocation	987
does not affect the tax-exempt status of the project's tangible	988
personal property for the tax year in which revocation occurs or	989
any prior tax year.	990

(C) Tangible personal property of a qualified energy project	991
using clean coal technology, advanced nuclear technology, or	992
cogeneration technology is exempt from taxation for the first tax	993
year that the property would be listed for taxation and all	994
subsequent years if all of the following circumstances are met:	995

(1) The property was placed into service before January 1,	996
2019. Tangible personal property that has not been placed into	997
service before that date is taxable property subject to taxation.	998

(2) For such a qualified energy project with a nameplate	999
capacity of five megawatts or greater, a board of county	1000
commissioners of a county in which property of the qualified	1001
energy project is located has adopted a resolution under division	1002
(E)(1)(b) or (c) of this section to approve the application	1003
submitted under division (E) of this section to exempt the	1004
property located in that county from taxation. A board's adoption	1005
of a resolution rejecting the application or its failure to adopt	1006
a resolution approving the application does not affect the	1007
tax-exempt status of the qualified energy project's property that	1008
is located in another county.	1009

(3) The certification for the qualified energy project issued	1010
under division (E)(2) of this section has not been revoked. An	1011
energy project for which certification has been revoked is	1012
ineligible for exemption under this section. Revocation does not	1013
affect the tax-exempt status of the project's tangible personal	1014
property for the tax year in which revocation occurs or any prior	1015
tax year.	1016

(D) Except as otherwise provided in division (E)(1) of this	1017
section, real property of a qualified energy project is exempt	1018
from taxation for any tax year for which the tangible personal	1019
property of the qualified energy project is exempted under this	1020
section.	1021

(E)(1)(a) A person may apply to the director of development	1022
for certification of an energy project as a qualified energy	1023
project on or before the following dates:	1024

(i) December 31, 2013, for an energy project using renewable	1025
energy resources;	1026

(ii) December 31, 2015, for an energy project using clean	1027
coal technology, advanced nuclear technology, or cogeneration	1028
technology.	1029

(b) The director shall forward a copy of each application for	1030
certification of an energy project with a nameplate capacity of	1031
five megawatts or greater to the board of county commissioners of	1032
each county in which the project is located and to each taxing	1033
unit with territory located in each of the affected counties. Any	1034
board that receives from the director a copy of an application	1035
submitted under this division shall adopt a resolution approving	1036
or rejecting the application unless it has adopted a resolution	1037
under division (E)(1)(c) of this section. A resolution adopted	1038
under division (E)(1)(b) or (c) of this section may require an	1039
annual service payment to be made in addition to the service	1040
payment required under division (G) of this section. The sum of	1041
the service payment required in the resolution and the service	1042
payment required under division (G) of this section shall not	1043
exceed nine thousand dollars per megawatt of nameplate capacity	1044
located in the county. The resolution shall specify the time and	1045
manner in which the payments required by the resolution shall be	1046
paid to the county treasurer. The county treasurer shall deposit	1047
the payment to the credit of the county's general fund to be used	1048
for any purpose for which money credited to that fund may be used.	1049

The board shall send copies of the resolution by certified	1050
mail to the owner of the facility and the director within thirty	1051
days after receipt of the application, or a longer period of time	1052
if authorized by the director.	1053

(c) A board of county commissioners may adopt a resolution	1054
declaring the county to be an alternative energy zone and	1055
declaring all applications submitted to the director of	1056
development under this division after the adoption of the	1057
resolution, and prior to its repeal, to be approved by the board.	1058

All tangible personal property and real property of an energy	1059
project with a nameplate capacity of five megawatts or greater is	1060
taxable if it is located in a county in which the board of county	1061
commissioners adopted a resolution rejecting the application	1062
submitted under this division or failed to adopt a resolution	1063
approving the application under division (E)(1)(b) or (c) of this	1064
section.	1065

(2) The director shall certify an energy project if all of	1066
the following circumstances exist:	1067

(a) The application was timely submitted.

1068

(b) For an energy project with a nameplate capacity of five	1069
megawatts or greater, a board of county commissioners of at least	1070
one county in which the project is located has adopted a	1071
resolution approving the application under division (E)(1)(b) or	1072
(c) of this section.	1073

(c) No portion of the project's facility was used to supply	1074
electricity before December 31, 2009.	1075

(3) The director shall deny a certification application if	1076
the director determines the person has failed to comply with any	1077
requirement under this section. The director may revoke a	1078
certification if the director determines the person, or subsequent	1079
owner or lessee pursuant to a sale and leaseback transaction of	1080
the qualified energy project, has failed to comply with any	1081
requirement under this section. Upon certification or revocation,	1082
the director shall notify the person, owner, or lessee, the tax	1083
commissioner, and the county auditor of a county in which the	1084
project is located of the certification or revocation. Notice	1085
shall be provided in a manner convenient to the director.	1086

(F) The owner or a lessee pursuant to a sale and leaseback	1087
transaction of a qualified energy project shall do each of the	1088
following:	1089

(1) Comply with all applicable regulations;

1090

(2) File with the director of development a certified	1091
construction progress report before the first day of March of each	1092
year during the energy facility's construction or installation	1093
indicating the percentage of the project completed, and the	1094
project's nameplate capacity, as of the preceding thirty-first day	1095
of December. Unless otherwise instructed by the director of	1096
development, the owner or lessee of an energy project shall file a	1097
report with the director on or before the first day of March each	1098
year after completion of the energy facility's construction or	1099
installation indicating the project's nameplate capacity as of the	1100
preceding thirty-first day of December. Not later than sixty days	1101
after June 17, 2010, the owner or lessee of an energy project, the	1102
construction of which was completed before June 17, 2010, shall	1103
file a certificate indicating the project's nameplate capacity.	1104

(3) File with the director of development, in a manner	1105
prescribed by the director, a report of the total number of	1106
full-time equivalent employees, and the total number of full-time	1107
equivalent employees domiciled in Ohio, who are employed in the	1108
construction or installation of the energy facility;	1109

(4) For energy projects with a nameplate capacity of five	1110
megawatts or greater, repair all roads, bridges, and culverts	1111
affected by construction as reasonably required to restore them to	1112
their preconstruction condition, as determined by the county	1113
engineer in consultation with the local jurisdiction responsible	1114
for the roads, bridges, and culverts. In the event that the county	1115
engineer deems any road, bridge, or culvert to be inadequate to	1116
support the construction or decommissioning of the energy	1117
facility, the road, bridge, or culvert shall be rebuilt or	1118
reinforced to the specifications established by the county	1119
engineer prior to the construction or decommissioning of the	1120
facility. The owner or lessee of the facility shall post a bond in	1121
an amount established by the county engineer and to be held by the	1122
board of county commissioners to ensure funding for repairs of	1123
roads, bridges, and culverts affected during the construction. The	1124
bond shall be released by the board not later than one year after	1125
the date the repairs are completed. The energy facility owner or	1126
lessee pursuant to a sale and leaseback transaction shall post a	1127
bond, as may be required by the Ohio power siting board in the	1128
certificate authorizing commencement of construction issued	1129
pursuant to section 4906.10 of the Revised Code, to ensure funding	1130
for repairs to roads, bridges, and culverts resulting from	1131
decommissioning of the facility. The energy facility owner or	1132
lessee and the county engineer may enter into an agreement	1133
regarding specific transportation plans, reinforcements,	1134
modifications, use and repair of roads, financial security to be	1135
provided, and any other relevant issue.	1136

(5) Provide or facilitate training for fire and emergency	1137
responders for response to emergency situations related to the	1138
energy project and, for energy projects with a nameplate capacity	1139
of five megawatts or greater, at the person's expense, equip the	1140
fire and emergency responders with proper equipment as reasonably	1141
required to enable them to respond to such emergency situations;	1142

(6) Maintain a ratio of Ohio-domiciled full-time equivalent	1143
employees employed in the construction or installation of the	1144
energy project to total full-time equivalent employees employed in	1145
the construction or installation of the energy project of not less	1146
than eighty per cent in the case of a solar energy project, and	1147
not less than fifty per cent in the case of any other energy	1148
project. In the case of an energy project for which certification	1149
from the power siting board is required under section 4906.20 of	1150
the Revised Code, the number of full-time equivalent employees	1151
employed in the construction or installation of the energy project	1152
equals the number actually employed or the number projected to be	1153
employed in the certificate application, if such projection is	1154
required under regulations adopted pursuant to section 4906.03 of	1155
the Revised Code, whichever is greater. For all other energy	1156
projects, the number of full-time equivalent employees employed in	1157
the construction or installation of the energy project equals the	1158
number actually employed or the number projected to be employed by	1159
the director of development, whichever is greater. To estimate the	1160
number of employees to be employed in the construction or	1161
installation of an energy project, the director shall use a	1162
generally accepted job-estimating model in use for renewable	1163
energy projects, including but not limited to the job and economic	1164
development impact model. The director may adjust an estimate	1165
produced by a model to account for variables not accounted for by	1166
the model.	1167

(7) For energy projects with a nameplate capacity in excess	1168
of two megawatts, establish a relationship with a member of the	1169
university system of Ohio as defined in section 3345.011 of the	1170
Revised Code or with a person offering an apprenticeship program	1171
registered with the employment and training administration within	1172
the United States department of labor or with the apprenticeship	1173
council created by section 4139.02 of the Revised Code, to educate	1174
and train individuals for careers in the wind or solar energy	1175
industry. The relationship may include endowments, cooperative	1176
programs, internships, apprenticeships, research and development	1177
projects, and curriculum development.	1178

(8) Offer to sell power or renewable energy credits from the	1179
energy project to electric distribution utilities or electric	1180
service companies subject to renewable energy resource	1181
requirements under section 4928.64 of the Revised Code that have	1182
issued requests for proposal for such power or renewable energy	1183
credits. If no electric distribution utility or electric service	1184
company issues a request for proposal on or before December 31,	1185
2010, or accepts an offer for power or renewable energy credits	1186
within forty-five days after the offer is submitted, power or	1187
renewable energy credits from the energy project may be sold to	1188
other persons. Division (F)(8) of this section does not apply if:	1189

(a) The owner or lessee is a rural electric company or a	1190
municipal power agency as defined in section 3734.058 of the	1191
Revised Code.	1192

(b) The owner or lessee is a person that, before completion	1193
of the energy project, contracted for the sale of power or	1194
renewable energy credits with a rural electric company or a	1195
municipal power agency.	1196

(c) The owner or lessee contracts for the sale of power or	1197
renewable energy credits from the energy project before June 17,	1198
2010.	1199

(9) Make annual service payments as required by division (G)	1200
of this section and as may be required in a resolution adopted by	1201
a board of county commissioners under division (E) of this	1202
section.	1203

(G) The owner or a lessee pursuant to a sale and leaseback	1204
transaction of a qualified energy project shall make annual	1205
service payments in lieu of taxes to the county treasurer on or	1206
before the final dates for payments of taxes on public utility	1207
personal property on the real and public utility personal property	1208
tax list for each tax year for which property of the energy	1209
project is exempt from taxation under this section. The county	1210
treasurer shall allocate the payment on the basis of the project's	1211
physical location. Upon receipt of a payment, or if timely payment	1212
has not been received, the county treasurer shall certify such	1213
receipt or non-receipt to the director of development and tax	1214
commissioner in a form determined by the director and	1215
commissioner, respectively. Each payment shall be in the following	1216
amount:	1217

(1) In the case of a solar energy project, seven thousand	1218
dollars per megawatt of nameplate capacity located in the county	1219
as of December 31, 2010, for tax year 2011, as of December 31,	1220
2011, for tax year 2012, as of December 31, 2012, for tax year	1221
2013, as of December 31, 2013, for tax year 2014, and as of	1222
December 31, 2014, for tax year 2015 and each tax year thereafter;	1223

(2) In the case of any other energy project using renewable	1224
energy resources, the following:	1225

(a) If the project maintains during the construction or	1226
installation of the energy facility a ratio of Ohio-domiciled	1227
full-time equivalent employees to total full-time equivalent	1228
employees of not less than seventy-five per cent, six thousand	1229
dollars per megawatt of nameplate capacity located in the county	1230
as of the thirty-first day of December of the preceding tax year;	1231

(b) If the project maintains during the construction or	1232
installation of the energy facility a ratio of Ohio-domiciled	1233
full-time equivalent employees to total full-time equivalent	1234
employees of less than seventy-five per cent but not less than	1235
sixty per cent, seven thousand dollars per megawatt of nameplate	1236
capacity located in the county as of the thirty-first day of	1237
December of the preceding tax year;	1238

(c) If the project maintains during the construction or	1239
installation of the energy facility a ratio of Ohio-domiciled	1240
full-time equivalent employees to total full-time equivalent	1241
employees of less than sixty per cent but not less than fifty per	1242
cent, eight thousand dollars per megawatt of nameplate capacity	1243
located in the county as of the thirty-first day of December of	1244
the preceding tax year.	1245

(3) In the case of an energy project using clean coal	1246
technology, advanced nuclear technology, or cogeneration	1247
technology, the following:	1248

(a) If the project maintains during the construction or	1249
installation of the energy facility a ratio of Ohio-domiciled	1250
full-time equivalent employees to total full-time equivalent	1251
employees of not less than seventy-five per cent, six thousand	1252
dollars per megawatt of nameplate capacity located in the county	1253
as of the thirty-first day of December of the preceding tax year;	1254

(b) If the project maintains during the construction or	1255
installation of the energy facility a ratio of Ohio-domiciled	1256
full-time equivalent employees to total full-time equivalent	1257
employees of less than seventy-five per cent but not less than	1258
sixty per cent, seven thousand dollars per megawatt of nameplate	1259
capacity located in the county as of the thirty-first day of	1260
December of the preceding tax year;	1261

(c) If the project maintains during the construction or	1262
installation of the energy facility a ratio of Ohio-domiciled	1263
full-time equivalent employees to total full-time equivalent	1264
employees of less than sixty per cent but not less than fifty per	1265
cent, eight thousand dollars per megawatt of nameplate capacity	1266
located in the county as of the thirty-first day of December of	1267
the preceding tax year.	1268

(H) The director of development in consultation with the tax	1269
commissioner shall adopt rules pursuant to Chapter 119. of the	1270
Revised Code to implement and enforce this section.	1271

Section 2. That existing sections 4928.142, 4928.143,	1272
4928.20, 4928.61, 4928.62, 5501.311, and 5727.75 and sections	1273
4928.64 and 4928.65 of the Revised Code are hereby repealed.	1274