HB6 - Senate Substitute Bill

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133rd General Assembly

Regular Session Sub. H. B. No. 6
2019-2020
A BILL
To amend sections 303.213, 519.213, 713.081, 1
4906.13, 4928.01, 4928.142, 4928.143, 4928.64, 2
4928.644, 4928.66, 4928.662, 4928.6610, and 3
5727.75, to enact sections 3706.40, 3706.41, 4
3706.45, 3706.47, 3706.49, 3706.491, 3706.51, 5
3706.53, 3706.55, 3706.57, 3706.59, 3706.61, 6
3706.63, 3706.65, 4905.311, 4928.147, 4928.148, 7
4928.47, 4928.661, 4928.80, and 5727.231, and to 8
repeal section 4928.6616 of the Revised Code to 9
facilitate and encourage electricity production 10
and use from nuclear and renewable energy 11
resources in this state and to maintain, with 12
modifications, the standards for renewable 13
energy and energy efficiency savings. 14
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 303.213, 519.213, 713.081, 15

4906.13, 4928.01, 4928.142, 4928.143, 4928.64, 4928.644, 16
4928.66, 4928.662, 4928.6610, and 5727.75 be amended and 17
sections 3706.40, 3706.41, 3706.45, 3706.47, 3706.49, 3706.491, 18
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Sub. H. B. No. 6 Page 2
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3706.51, 3706.53, 3706.55, 3706.57, 3706.59, 3706.61, 3706.63, 19

3706.65, 4905.311, 4928.147, 4928.148, 4928.47, 4928.661, 20
4928.80, and 5727.231 of the Revised Code be enacted to read as 21
follows: 22
Sec. 303.213. (A) As used in this section, "small wind 23

farm" means wind turbines and associated facilities with a 24
single interconnection to the electrical grid and designed for, 25
or capable of, operation at an aggregate capacity of less than 26
five megawatts that are not subject to the jurisdiction of the 27
power siting board under sections 4906.20 and 4906.201 of the 28
Revised Code. 29
(B) Notwithstanding division (A) of section 303.211 of the 30

Revised Code, sections 303.01 to 303.25 of the Revised Code 31
confer power on a board of county commissioners or board of 32
zoning appeals to adopt zoning regulations governing the 33
location, erection, construction, reconstruction, change, 34
alteration, maintenance, removal, use, or enlargement of any 35
small wind farm, whether publicly or privately owned, or the use 36
of land for that purpose, which regulations may be more strict 37
than the regulations prescribed in rules adopted under division 38
(B)(2) of section 4906.20 of the Revised Code. 39
(C) The designation under this section of a small wind 40

farm as a public utility for purposes of sections 303.01 to 41
303.25 of the Revised Code shall not affect the classification 42
of a small wind farm for purposes of state or local taxation. 43
(D) Nothing in division (C) of this section shall be 44

construed as affecting the classification of a 45
telecommunications tower as defined in division (B) or (E) of 46
section 303.211 of the Revised Code or any other public utility 47
for purposes of state and local taxation. 48
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Revised Code. 55
(B) Notwithstanding division (A) of section 519.211 of the 56

Revised Code, sections 519.02 to 519.25 of the Revised Code 57
confer power on a board of township trustees or board of zoning 58
appeals with respect to the location, erection, construction, 59
reconstruction, change, alteration, maintenance, removal, use, 60
or enlargement of any small wind farm, whether publicly or 61
privately owned, or the use of land for that purpose, which 62
regulations may be more strict than the regulations prescribed 63
in rules adopted under division (B)(2) of section 4906.20 of the 64
Revised Code. 65

of a small wind farm or any other public utility for purposes of 69
state or local taxation. 70
(D) Nothing in division (C) of this section shall be 71

construed as affecting the classification of a 72
telecommunications tower as defined in division (B) or (E) of 73
section 519.211 of the Revised Code or any other public utility 74
for purposes of state and local taxation. 75

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Revised Code. 82
(B) Sections 713.06 to 713.15 of the Revised Code confer 83

power on the legislative authority of a municipal corporation 84
with respect to the location, erection, construction, 85
reconstruction, change, alteration, maintenance, removal, use, 86
or enlargement of any small wind farm as a public utility, 87
whether publicly or privately owned, or the use of land for that 88
purpose, which regulations may be more strict than the 89
regulations prescribed in rules adopted under division (B)(2) of 90
section 4906.20 of the Revised Code. 91

of a small wind farm or any other public utility for purposes of 95
state or local taxation. 96
Sec. 3706.40. As used in sections 3706.40 to 3706.65 of 97

the Revised Code: 98
(A) "Qualifying nuclear resource" means an electric 99

generating facility in this state fueled by nuclear power. 100
(B) "Qualifying renewable energy resource" means a 101

qualifying renewable energy resource as defined in section 102
4928.64 of the Revised Code to which both of the following 103
apply: 104
(1) The resource is located in this state. 105
(2) The resource was constructed on or after the effective 106

date of this section. 107
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Sec. 3706.41. (A) The owner or operator of a qualifying 108

nuclear resource may apply, not later than February 1, 2020, to 109
the Ohio air quality development authority to receive payments 110
for nuclear resource credits under section 3706.55 of the 111
Revised Code. 112
(B) Upon receiving an application under division (A) of 113

this section, the authority shall review the application to 114
determine the resource's eligibility to receive payments for 115
nuclear resource credits. The authority shall, not later than 116
March 31, 2020, certify the resource as eligible if both of the 117
following apply: 118
(1) The resource meets the definition of a qualifying 119

nuclear resource in section 3706.40 of the Revised Code. 120
(2) The resource's owner or operator maintains both a 121

principal place of business in this state and a substantial 122
presence in this state with regard to its regular corporate 123
operations, offices, and transactions. 124
Sec. 3706.45. (A)(1) The Ohio air quality development 125

authority may decertify a qualifying nuclear resource if, after 126
reviewing an audit report submitted under section 3706.61 of the 127
Revised Code, the authority determines, in consultation with the 128
public utilities commission, that there is no longer need for 129
the resource owner or operator to receive any further payments 130
for nuclear resource credits under section 3706.55 of the 131
Revised Code. 132
(2) The authority shall decertify a qualifying nuclear 133

resource at any time if it determines either of the following: 134
(a) That either requirement under division (B)(1) or (2) 135

of section 3706.41 of the Revised Code is no longer being met; 136
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(b) That the resource will be decommissioned before 137

December 31, 2026. 138
(B) Before decertifying a qualifying nuclear resource, the 139

authority shall do both of the following: 140
(1) Allow the resource to provide information in support 141

of remaining certified; 142
(2) Hold a public hearing and allow for public comment. 143
Sec. 3706.47. (A) There is hereby created the energy 144

generation fund. The fund shall be in the custody of the 145
treasurer of state but shall not be part of the state treasury. 146
The fund shall consist of the charges under section 3706.49 of 147
the Revised Code. All interest generated by the fund shall be 148
retained in the fund and used for the purposes set forth in 149
sections 3706.40 to 3706.65 of the Revised Code. 150
(B) The treasurer of state shall distribute the moneys in 151

the energy generation fund in accordance with the directions 152
provided by the Ohio air quality development authority in 153
consultation with the public utilities commission. 154
Sec. 3706.49. (A) Beginning January 1, 2020, and ending 155

December 31, 2026, each retail electric customer of an electric 156
distribution utility in this state shall pay a per-account 157
monthly charge, which shall be billed and collected by each 158
electric distribution utility and remitted to the treasurer of 159
state for deposit into the energy generation fund, created under 160
(B) Except as provided in section 3706.491 of the Revised 162

Code: 163
(1) For customers classified by the utility as 164

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residential, the monthly charge shall be eighty cents. 165
(2) For customers classified by the utility as commercial, 166

except as provided in division (B)(4) of this section, the 167
monthly charge shall be determined by a structure and design 168
that the public utilities commission shall, not later than 169
November 1, 2019, establish. The commission shall establish the 170
structure and design of the charge such that the average charge 171
across all customers subject to the charge under division (B)(2) 172
of this section is eleven dollars. 173
(3) For customers classified by the utility as industrial, 174

except as provided in division (B)(4) of this section, the 175
monthly charge shall be determined by a structure and design 176
that the commission shall, not later than November 1, 2019, 177
establish. The commission shall establish the structure and 178
design of the charge such that the average charge across all 179
customers subject to the charge under division (B)(3) of this 180
section is two hundred forty dollars. 181
(4) For customers classified by the utility as commercial 182

or industrial that exceeded forty-five million kilowatt hours of 183
electricity at a single location in the preceding year, the 184
monthly charge shall be two thousand four hundred dollars. 185
(C) The commission shall comply with divisions (B)(2) and 186
(3) of this section in a manner that avoids abrupt or excessive 187
total electric bill impacts for typical customers with a 188
classification of commercial or industrial. 189
(D) For purposes of division (B) of this section, the 190

classification of residential, commercial, and industrial 191
customers shall be consistent with the utility's approved rate 192
schedules. 193
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Sec. 3706.491. (A) If the Ohio air quality development 194

authority determines, during its review of an audit report 195
submitted under section 3706.61 of the Revised Code, that there 196
is a reduced need for the owner or operator of a certified 197
qualifying nuclear resource to receive payments for nuclear 198
resource credits under section 3706.55 of the Revised Code, then 199
the public utilities commission shall develop new charge 200
amounts, structures, and designs to meet a revised revenue 201
requirement as directed by the authority. The commission shall 202
reduce the price of nuclear resource credits under section 203
3706.57 of the Revised Code and adjust the percentage 204
limitations under section 3706.55 of the Revised Code 205
accordingly. 206
(B) Any revisions made by the commission under this 207

section shall not be considered an application under section 208
4909.18 of the Revised Code. 209
Sec. 3706.51. (A) Beginning March 31, 2020, and ending 210
with December 2026, the owner or operator of a certified 211
qualifying nuclear resource shall report to the Ohio air quality 212
development authority, not later than seven days after the close 213
of each month, the number of megawatt hours the resource 214
produced in the previous month. 215
(B) A certified qualifying nuclear resource shall earn a 216

nuclear resource credit for each megawatt hour of electricity it 217
produces. 218
Sec. 3706.53. Beginning March 31, 2020, and ending with 219
December 2026, an owner or operator, other than an electric 220
distribution utility, of a qualifying renewable energy resource 221
may apply to the Ohio air quality development authority to 222
receive, in accordance with section 3706.55 of the Revised Code, 223
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a supplemental renewable energy credit payment for each 224

renewable energy credit for the resource that the owner or 225
operator sold during that month. Applications under this section 226
shall be made not later than seven days after the close of each 227
month. The authority shall certify the resource to receive 228
supplemental renewable energy credit payments if the resource 229
meets the definition of a qualifying renewable energy resource 230
in section 3706.40 of the Revised Code and if the resource has 231
received renewable energy credits under section 4928.645 of the 232
Revised Code. An applicant may receive supplemental renewable 233
energy credit payments under section 3706.55 of the Revised Code 234
regardless of whether the renewable energy credits were sold in 235
this state. 236
Sec. 3706.55. (A) As used in this section, "total amount 237

deposited into the fund during the previous month" includes 238
interest earned during that month. 239
(B) Except as provided in section 3706.491 of the Revised 240

Code, for the period beginning March 31, 2020, and ending with 241
December 2026, not later than fourteen days after the close of 242
each month, the Ohio air quality development authority shall 243
direct the treasurer of state to remit money from the energy 244
generation fund, subject to sections 3706.57 and 3706.59 of the 245
Revised Code, as follows: 246
(1) To the owner or operator of a certified qualifying 247

nuclear resource, in the amount equivalent to the number of 248
credits earned by the resource during the previous month 249
multiplied by the credit price, and as directed by the authority 250
in accordance with section 3706.61 of the Revised Code, except 251
that: 252
(a) For remittances made after April 14, 2020, the total 253
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amount remitted under division (B)(1) of this section shall not 254
exceed ninety-three and seventy-five hundredths of one per cent 255
of the total amount deposited into the fund during the previous 256
month. 257
(b) For the remittances made not later than April 14, 258
2020, the total amount remitted under division (B)(1) of this 259
section shall not exceed ninety-three and seventy-five 260
hundredths of one per cent of the total amount in the fund as of 261
March 31, 2020. 262
(2) To the owners or operators of certified qualifying 263

renewable energy resources that applied under section 3706.53 of 264
the Revised Code, in the amount equivalent to the number of 265
credits sold by the resource during the previous month 266
multiplied by the amount of the supplemental renewable energy 267
credit payment, prioritizing earlier applicants over later 268
applicants, provided that: 269
(a) For remittances made after April 14, 2020, the total 270
amount remitted under division (B)(2) of this section shall not 271
exceed six and twenty-five hundredths of one per cent of the 272
total amount deposited into the fund during the previous month. 273
(b) For the remittances made not later than April 14, 274
2020, the total amount remitted under division (B)(2) of this 275
section shall not exceed six and twenty-five hundredths of one 276
per cent of the total amount in the fund as of March 31, 2020. 277
(C) Notwithstanding section 4905.32 of the Revised Code, 278

any amount remaining in the energy generation fund as of 279
December 31, 2026, minus the remittances that are required to be 280
made between that date and January 14, 2027, shall be refunded 281
to the customers in a manner that shall be determined by the 282
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authority in consultation with the public utilities commission. 283
Sec. 3706.57. (A) Except as provided in section 3706.491 284

of the Revised Code, the price for a nuclear resource credit 285
paid under section 3706.55 of the Revised Code shall be nine 286
dollars. 287
(B) The amount for a supplemental renewable energy credit 288

payment under section 3706.55 of the Revised Code shall be three 289
dollars. 290
Sec. 3706.59. (A) If the owner or operator of a certified 291

qualifying nuclear resource is not fully compensated for its 292
nuclear resource credits earned due to the percentage limitation 293
in division (B)(1) of section 3706.55 of the Revised Code, then 294
the Ohio air quality development authority shall, subject to 295
division (B) of this section and not later than fourteen days 296
after the close of any month in which the owner or operator was 297
not fully compensated, direct the treasurer of state to remit 298
money from the energy generation fund to pay for the unpaid 299
credits. 300
(B) Except as provided in division (B)(1)(b) of section 301

3706.55 of the Revised Code, the total remittances to the owner 302
or operator of a certified qualifying nuclear resource under 303
division (A) of this section and division (B)(1) of section 304
3706.55 of the Revised Code shall not exceed, in any month, 305
ninety-three and seventy-five hundredths of one per cent of the 306
total amount deposited into the energy generation fund during 307
the previous month, including interest earned during that month. 308
Sec. 3706.61. (A) In each year beginning in 2021 and 309

ending in 2026, the public utilities commission shall conduct a 310
management and financial audit of any owner or operator of a 311
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qualifying nuclear resource and any such resource that receives 312
payments for nuclear resource credits under section 3706.55 of 313
the Revised Code for the purpose of evaluating how those 314
payments were used by the owner or operator and the resource and 315
the extent, if any, to which those payments were needed to 316
maintain operation of the resource. In doing so, the commission 317
may retain consultants and advisors to perform all or any 318
portion of the annual audits, the cost of which shall be paid, 319
at the direction of the Ohio air quality development authority, 320
by the treasurer of state from the energy generation fund in 321
accordance with section 3706.55 of the Revised Code. 322
(B) Any owner or operator subject to an audit under 323

division (A) of this section shall promptly and fully respond to 324
any document, information, data, or other request that may be 325
directed to their attention by the commission or its consultants 326
or advisors for the purpose of the audit. Any material failure 327
to timely and fully respond shall result in suspension of 328
further receipt of payments for nuclear resource credits under 329
section 3706.55 of the Revised Code until the failure is cured 330
to the satisfaction of the commission. 331
(C) The commission shall submit a report summarizing the 332

findings of each annual audit to the president of the senate, 333
the speaker of the house of representatives, and the Ohio air 334
quality development authority, provided that the report shall 335
not reveal any confidential or proprietary information. The 336
submission shall include a copy of the owner's or operator's own 337
certified annual audit that was obtained during the audit 338
performed under this section. 339
(D) The Ohio air quality development authority shall, in 340

consultation with the commission, consider the findings of the 341
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audit in carrying out the authority's duties under section 342

(E) Chapter 4903. of the Revised Code shall not apply to 344
this section. 345
Sec. 3706.63. (A) Not later than ninety days after the 346
effective date of this section, the Ohio air quality development 347
authority shall adopt rules under Chapter 119. of the Revised 348
Code that are necessary to begin implementation of sections 349
3706.40 to 3706.65 of the Revised Code. The rules adopted under 350
this division shall include provisions for all of the following: 351
(1) Tracking the information reported under section 352

3706.51 of the Revised Code and the applications made under 353
section 3706.53 of the Revised Code; 354
(2) A system of registering nuclear resource credits by 355

specifying that the generation attribute tracking system may be 356
used for that purpose and not by creating a registry. 357
(B) Not later than two hundred seventy-five days after the 358
effective date of this section, the authority shall adopt rules 359
under Chapter 119. of the Revised Code that are necessary for 360
final implementation and administration of sections 3706.40 to 361
Sec. 3706.65. For the purpose of carrying out the Ohio air 363
quality development authority's duties under sections 3706.40 to 364
3706.63 of the Revised Code, the authority may make use of the 365
staff and experts employed at the public utilities commission in 366
such manner as is provided by mutual arrangement between the 367
authority and the commission. Any information, data, and 368
equipment of the commission shall be placed at the disposal of 369
the authority. 370
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Sec. 4905.311. In order to promote job growth and 371

retention in this state, the public utilities commission, when 372
ruling on a reasonable arrangement application under section 373
4905.31 of the Revised Code, shall attempt to minimize electric 374
rates to the maximum amount possible on trade-exposed industrial 375
manufacturers. 376
Sec. 4906.13. (A) As used in this section and sections 377

4906.20 and 4906.98 of the Revised Code, "economically 378
significant wind farm" means wind turbines and associated 379
facilities with a single interconnection to the electrical grid 380
and designed for, or capable of, operation at an aggregate 381
capacity of five or more megawatts but less than fifty 382
megawatts. The term excludes any such wind farm in operation on 383
June 24, 2008. The term also excludes one or more wind turbines 384
and associated facilities that are primarily dedicated to 385
providing electricity to a single customer at a single location 386
and that are designed for, or capable of, operation at an 387
aggregate capacity of less than twenty megawatts, as measured at 388
the customer's point of interconnection to the electrical grid. 389
(B) No public agency or political subdivision of this 390

state may require any approval, consent, permit, certificate, or 391
other condition for the construction or operation of a major 392
utility facility or economically significant wind farm 393
authorized by a certificate issued pursuant to Chapter 4906. of 394
the Revised Code. Nothing herein shall prevent the application 395
of state laws for the protection of employees engaged in the 396
construction of such facility or wind farm nor of municipal 397
regulations that do not pertain to the location or design of, or 398
pollution control and abatement standards for, a major utility 399
facility or economically significant wind farm for which a 400
certificate has been granted under this chapter. 401
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Sec. 4928.01. (A) As used in this chapter: 402
(1) "Ancillary service" means any function necessary to 403

the provision of electric transmission or distribution service 404
to a retail customer and includes, but is not limited to, 405
scheduling, system control, and dispatch services; reactive 406
supply from generation resources and voltage control service; 407
reactive supply from transmission resources service; regulation 408
service; frequency response service; energy imbalance service; 409
operating reserve-spinning reserve service; operating reserve- 410
supplemental reserve service; load following; back-up supply 411
service; real-power loss replacement service; dynamic 412
scheduling; system black start capability; and network stability 413
service. 414
(2) "Billing and collection agent" means a fully 415

independent agent, not affiliated with or otherwise controlled 416
by an electric utility, electric services company, electric 417
cooperative, or governmental aggregator subject to certification 418
under section 4928.08 of the Revised Code, to the extent that 419
the agent is under contract with such utility, company, 420
cooperative, or aggregator solely to provide billing and 421
collection for retail electric service on behalf of the utility 422
company, cooperative, or aggregator. 423
(3) "Certified territory" means the certified territory 424

established for an electric supplier under sections 4933.81 to 425
(4) "Competitive retail electric service" means a 427

component of retail electric service that is competitive as 428
provided under division (B) of this section. 429
(5) "Electric cooperative" means a not-for-profit electric 430

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light company that both is or has been financed in whole or in 431

part under the "Rural Electrification Act of 1936," 49 Stat. 432
1363, 7 U.S.C. 901, and owns or operates facilities in this 433
state to generate, transmit, or distribute electricity, or a 434
not-for-profit successor of such company. 435
(6) "Electric distribution utility" means an electric 436

utility that supplies at least retail electric distribution 437
service. 438
(7) "Electric light company" has the same meaning as in 439

section 4905.03 of the Revised Code and includes an electric 440
services company, but excludes any self-generator to the extent 441
that it consumes electricity it so produces, sells that 442
electricity for resale, or obtains electricity from a generating 443
facility it hosts on its premises. 444
(8) "Electric load center" has the same meaning as in 445

(9) "Electric services company" means an electric light 447

company that is engaged on a for-profit or not-for-profit basis 448
in the business of supplying or arranging for the supply of only 449
a competitive retail electric service in this state. "Electric 450
services company" includes a power marketer, power broker, 451
aggregator, or independent power producer but excludes an 452
electric cooperative, municipal electric utility, governmental 453
aggregator, or billing and collection agent. 454
(10) "Electric supplier" has the same meaning as in 455

(11) "Electric utility" means an electric light company 457

that has a certified territory and is engaged on a for-profit 458
basis either in the business of supplying a noncompetitive 459
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retail electric service in this state or in the businesses of 460

supplying both a noncompetitive and a competitive retail 461
electric service in this state. "Electric utility" excludes a 462
municipal electric utility or a billing and collection agent. 463
(12) "Firm electric service" means electric service other 464

than nonfirm electric service. 465
(13) "Governmental aggregator" means a legislative 466

authority of a municipal corporation, a board of township 467
trustees, or a board of county commissioners acting as an 468
aggregator for the provision of a competitive retail electric 469
service under authority conferred under section 4928.20 of the 470
Revised Code. 471
(14) A person acts "knowingly," regardless of the person's 472

purpose, when the person is aware that the person's conduct will 473
probably cause a certain result or will probably be of a certain 474
nature. A person has knowledge of circumstances when the person 475
is aware that such circumstances probably exist. 476
(15) "Level of funding for low-income customer energy 477

efficiency programs provided through electric utility rates" 478
means the level of funds specifically included in an electric 479
utility's rates on October 5, 1999, pursuant to an order of the 480
public utilities commission issued under Chapter 4905. or 4909. 481
of the Revised Code and in effect on October 4, 1999, for the 482
purpose of improving the energy efficiency of housing for the 483
utility's low-income customers. The term excludes the level of 484
any such funds committed to a specific nonprofit organization or 485
organizations pursuant to a stipulation or contract. 486
(16) "Low-income customer assistance programs" means the 487

percentage of income payment plan program, the home energy 488
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assistance program, the home weatherization assistance program, 489

and the targeted energy efficiency and weatherization program. 490
(17) "Market development period" for an electric utility 491

means the period of time beginning on the starting date of 492
competitive retail electric service and ending on the applicable 493
date for that utility as specified in section 4928.40 of the 494
Revised Code, irrespective of whether the utility applies to 495
receive transition revenues under this chapter. 496
(18) "Market power" means the ability to impose on 497

customers a sustained price for a product or service above the 498
price that would prevail in a competitive market. 499
(19) "Mercantile customer" means a commercial or 500

industrial customer if the electricity consumed is for 501
nonresidential use and the customer consumes more than seven 502
hundred thousand kilowatt hours per year or is part of a 503
national account involving multiple facilities in one or more 504
states. 505
(20) "Municipal electric utility" means a municipal 506

corporation that owns or operates facilities to generate, 507
transmit, or distribute electricity. 508
(21) "Noncompetitive retail electric service" means a 509

component of retail electric service that is noncompetitive as 510
provided under division (B) of this section. 511
(22) "Nonfirm electric service" means electric service 512

provided pursuant to a schedule filed under section 4905.30 of 513
the Revised Code or pursuant to an arrangement under section 514
4905.31 of the Revised Code, which schedule or arrangement 515
includes conditions that may require the customer to curtail or 516
interrupt electric usage during nonemergency circumstances upon 517
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notification by an electric utility. 518
(23) "Percentage of income payment plan arrears" means 519

funds eligible for collection through the percentage of income 520
payment plan rider, but uncollected as of July 1, 2000. 521
(24) "Person" has the same meaning as in section 1.59 of 522

the Revised Code. 523
(25) "Advanced energy project" means any technologies, 524

products, activities, or management practices or strategies that 525
facilitate the generation or use of electricity or energy and 526
that reduce or support the reduction of energy consumption or 527
support the production of clean, renewable energy for 528
industrial, distribution, commercial, institutional, 529
governmental, research, not-for-profit, or residential energy 530
users, including, but not limited to, advanced energy resources 531
and renewable energy resources. "Advanced energy project" also 532
includes any project described in division (A), (B), or (C) of 533
(26) "Regulatory assets" means the unamortized net 535

regulatory assets that are capitalized or deferred on the 536
regulatory books of the electric utility, pursuant to an order 537
or practice of the public utilities commission or pursuant to 538
generally accepted accounting principles as a result of a prior 539
commission rate-making decision, and that would otherwise have 540
been charged to expense as incurred or would not have been 541
capitalized or otherwise deferred for future regulatory 542
consideration absent commission action. "Regulatory assets" 543
includes, but is not limited to, all deferred demand-side 544
management costs; all deferred percentage of income payment plan 545
arrears; post-in-service capitalized charges and assets 546
recognized in connection with statement of financial accounting 547
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standards no. 109 (receivables from customers for income taxes); 548
future nuclear decommissioning costs and fuel disposal costs as 549
those costs have been determined by the commission in the 550
electric utility's most recent rate or accounting application 551
proceeding addressing such costs; the undepreciated costs of 552
safety and radiation control equipment on nuclear generating 553
plants owned or leased by an electric utility; and fuel costs 554
currently deferred pursuant to the terms of one or more 555
settlement agreements approved by the commission. 556
(27) "Retail electric service" means any service involved 557

in supplying or arranging for the supply of electricity to 558
ultimate consumers in this state, from the point of generation 559
to the point of consumption. For the purposes of this chapter, 560
retail electric service includes one or more of the following 561
"service components": generation service, aggregation service, 562
power marketing service, power brokerage service, transmission 563
service, distribution service, ancillary service, metering 564
service, and billing and collection service. 565
(28) "Starting date of competitive retail electric 566

service" means January 1, 2001. 567
(29) "Customer-generator" means a user of a net metering 568

system. 569
(30) "Net metering" means measuring the difference in an 570

applicable billing period between the electricity supplied by an 571
electric service provider and the electricity generated by a 572
customer-generator that is fed back to the electric service 573
provider. 574
(31) "Net metering system" means a facility for the 575

production of electrical energy that does all of the following: 576
l_133_1512-1
(a) Uses as its fuel either solar, wind, biomass, landfill 577
gas, or hydropower, or uses a microturbine or a fuel cell; 578
(b) Is located on a customer-generator's premises; 579
(c) Operates in parallel with the electric utility's 580

transmission and distribution facilities; 581
(d) Is intended primarily to offset part or all of the 582

customer-generator's requirements for electricity. For an 583
industrial customer-generator with a net metering system that 584
has a capacity of less than twenty megawatts and uses wind as 585
energy, this means the net metering system was sized so as to 586
not exceed one hundred per cent of the customer-generator's 587
annual requirements for electric energy at the time of 588
interconnection. 589
(32) "Self-generator" means an entity in this state that 590

owns or hosts on its premises an electric generation facility 591
that produces electricity primarily for the owner's consumption 592
and that may provide any such excess electricity to another 593
entity, whether the facility is installed or operated by the 594
owner or by an agent under a contract. 595
(33) "Rate plan" means the standard service offer in 596

effect on the effective date of the amendment of this section by 597
S.B. 221 of the 127th general assembly, July 31, 2008. 598
(34) "Advanced energy resource" means any of the 599

following: 600
(a) Any method or any modification or replacement of any 601

property, process, device, structure, or equipment that 602
increases the generation output of an electric generating 603
facility to the extent such efficiency is achieved without 604
additional carbon dioxide emissions by that facility; 605
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(b) Any distributed generation system consisting of 606

customer cogeneration technology; 607
(c) Clean coal technology that includes a carbon-based 608

product that is chemically altered before combustion to 609
demonstrate a reduction, as expressed as ash, in emissions of 610
nitrous oxide, mercury, arsenic, chlorine, sulfur dioxide, or 611
sulfur trioxide in accordance with the American society of 612
testing and materials standard D1757A or a reduction of metal 613
oxide emissions in accordance with standard D5142 of that 614
society, or clean coal technology that includes the design 615
capability to control or prevent the emission of carbon dioxide, 616
which design capability the commission shall adopt by rule and 617
shall be based on economically feasible best available 618
technology or, in the absence of a determined best available 619
technology, shall be of the highest level of economically 620
feasible design capability for which there exists generally 621
accepted scientific opinion; 622
(d) Advanced nuclear energy technology consisting of 623

generation III technology as defined by the nuclear regulatory 624
commission; other, later technology; or significant improvements 625
to existing facilities; 626
(e) Any fuel cell used in the generation of electricity, 627

including, but not limited to, a proton exchange membrane fuel 628
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 629
solid oxide fuel cell; 630
(f) Advanced solid waste or construction and demolition 631

debris conversion technology, including, but not limited to, 632
advanced stoker technology, and advanced fluidized bed 633
gasification technology, that results in measurable greenhouse 634
gas emissions reductions as calculated pursuant to the United 635
l_133_1512-1
States environmental protection agency's waste reduction model 636

(WARM); 637
(g) Demand-side management and any energy efficiency 638

improvement; 639
(h) Any new, retrofitted, refueled, or repowered 640

generating facility located in Ohio, including a simple or 641
combined-cycle natural gas generating facility or a generating 642
facility that uses biomass, coal, modular nuclear, or any other 643
fuel as its input; 644
(i) Any uprated capacity of an existing electric 645

generating facility if the uprated capacity results from the 646
deployment of advanced technology. 647
"Advanced energy resource" does not include a waste energy 648

recovery system that is, or has been, included in an energy 649
efficiency program of an electric distribution utility pursuant 650
to requirements under section 4928.66 of the Revised Code. 651
(35) "Air contaminant source" has the same meaning as in 652

(36) "Cogeneration technology" means technology that 654

produces electricity and useful thermal output simultaneously. 655
(37)(a) "Renewable energy resource" means any of the 656

following: 657
(i) Solar photovoltaic or solar thermal energy; 658
(ii) Wind energy; 659
(iii) Power produced by a hydroelectric facility; 660
(iv) Power produced by a small hydroelectric facility, 661

which is a facility that operates, or is rated to operate, at an 662
l_133_1512-1
aggregate capacity of less than six megawatts; 663
(v) Power produced by a run-of-the-river hydroelectric 664

facility placed in service on or after January 1, 1980, that is 665
located within this state, relies upon the Ohio river, and 666
operates, or is rated to operate, at an aggregate capacity of 667
forty or more megawatts; 668
(vi) Geothermal energy; 669
(vii) Fuel derived from solid wastes, as defined in 670

section 3734.01 of the Revised Code, through fractionation, 671
biological decomposition, or other process that does not 672
principally involve combustion; 673
(viii) Biomass energy; 674
(ix) Energy produced by cogeneration technology that is 675

placed into service on or before December 31, 2015, and for 676
which more than ninety per cent of the total annual energy input 677
is from combustion of a waste or byproduct gas from an air 678
contaminant source in this state, which source has been in 679
operation since on or before January 1, 1985, provided that the 680
cogeneration technology is a part of a facility located in a 681
county having a population of more than three hundred sixty-five 682
thousand but less than three hundred seventy thousand according 683
to the most recent federal decennial census; 684
(x) Biologically derived methane gas; 685
(xi) Heat captured from a generator of electricity, 686

boiler, or heat exchanger fueled by biologically derived methane 687
gas; 688
(xii) Energy derived from nontreated by-products of the 689

pulping process or wood manufacturing process, including bark, 690
l_133_1512-1
wood chips, sawdust, and lignin in spent pulping liquors. 691
"Renewable energy resource" includes, but is not limited 692

to, any fuel cell used in the generation of electricity, 693
including, but not limited to, a proton exchange membrane fuel 694
cell, phosphoric acid fuel cell, molten carbonate fuel cell, or 695
solid oxide fuel cell; wind turbine located in the state's 696
territorial waters of Lake Erie; methane gas emitted from an 697
abandoned coal mine; waste energy recovery system placed into 698
service or retrofitted on or after the effective date of the 699
amendment of this section by S.B. 315 of the 129th general 700
assembly, September 10, 2012, except that a waste energy 701
recovery system described in division (A)(38)(b) of this section 702
may be included only if it was placed into service between 703
January 1, 2002, and December 31, 2004; storage facility that 704
will promote the better utilization of a renewable energy 705
resource; or distributed generation system used by a customer to 706
generate electricity from any such energy. 707
"Renewable energy resource" does not include a waste 708

energy recovery system that is, or was, on or after January 1, 709
2012, included in an energy efficiency program of an electric 710
distribution utility pursuant to requirements under section 711
(b) As used in division (A)(37) of this section, 713

"hydroelectric facility" means a hydroelectric generating 714
facility that is located at a dam on a river, or on any water 715
discharged to a river, that is within or bordering this state or 716
within or bordering an adjoining state and meets all of the 717
following standards: 718
(i) The facility provides for river flows that are not 719
detrimental for fish, wildlife, and water quality, including 720
l_133_1512-1
seasonal flow fluctuations as defined by the applicable 721

licensing agency for the facility. 722
(ii) The facility demonstrates that it complies with the 723

water quality standards of this state, which compliance may 724
consist of certification under Section 401 of the "Clean Water 725
Act of 1977," 91 Stat. 1598, 1599, 33 U.S.C. 1341, and 726
demonstrates that it has not contributed to a finding by this 727
state that the river has impaired water quality under Section 728
303(d) of the "Clean Water Act of 1977," 114 Stat. 870, 33 729
U.S.C. 1313. 730
(iii) The facility complies with mandatory prescriptions 731

regarding fish passage as required by the federal energy 732
regulatory commission license issued for the project, regarding 733
fish protection for riverine, anadromous, and catadromous fish. 734
(iv) The facility complies with the recommendations of the 735

Ohio environmental protection agency and with the terms of its 736
federal energy regulatory commission license regarding watershed 737
protection, mitigation, or enhancement, to the extent of each 738
agency's respective jurisdiction over the facility. 739
(v) The facility complies with provisions of the 740

"Endangered Species Act of 1973," 87 Stat. 884, 16 U.S.C. 1531 741
to 1544, as amended. 742
(vi) The facility does not harm cultural resources of the 743
area. This can be shown through compliance with the terms of its 744
federal energy regulatory commission license or, if the facility 745
is not regulated by that commission, through development of a 746
plan approved by the Ohio historic preservation office, to the 747
extent it has jurisdiction over the facility. 748
(vii) The facility complies with the terms of its federal 749
l_133_1512-1
energy regulatory commission license or exemption that are 750

related to recreational access, accommodation, and facilities 751
or, if the facility is not regulated by that commission, the 752
facility complies with similar requirements as are recommended 753
by resource agencies, to the extent they have jurisdiction over 754
the facility; and the facility provides access to water to the 755
public without fee or charge. 756
(viii) The facility is not recommended for removal by any 757

federal agency or agency of any state, to the extent the 758
particular agency has jurisdiction over the facility. 759
(c) The standards in divisions (A)(37)(b)(i) to (viii) of 760

this section do not apply to a small hydroelectric facility 761
under division (A)(37)(a)(iv) of this section. 762
(38) "Waste energy recovery system" means either of the 763

following: 764
(a) A facility that generates electricity through the 765

conversion of energy from either of the following: 766
(i) Exhaust heat from engines or manufacturing, 767

industrial, commercial, or institutional sites, except for 768
exhaust heat from a facility whose primary purpose is the 769
generation of electricity; 770
(ii) Reduction of pressure in gas pipelines before gas is 771

distributed through the pipeline, provided that the conversion 772
of energy to electricity is achieved without using additional 773
fossil fuels. 774
(b) A facility at a state institution of higher education 775

as defined in section 3345.011 of the Revised Code that recovers 776
waste heat from electricity-producing engines or combustion 777
turbines and that simultaneously uses the recovered heat to 778
l_133_1512-1
produce steam, provided that the facility was placed into 779
service between January 1, 2002, and December 31, 2004. 780
(39) "Smart grid" means capital improvements to an 781

electric distribution utility's distribution infrastructure that 782
improve reliability, efficiency, resiliency, or reduce energy 783
demand or use, including, but not limited to, advanced metering 784
and automation of system functions. 785
(40) "Combined heat and power system" means the 786

coproduction of electricity and useful thermal energy from the 787
same fuel source designed to achieve thermal-efficiency levels 788
of at least sixty per cent, with at least twenty per cent of the 789
system's total useful energy in the form of thermal energy. 790
(41) "Legacy generation resource" means all generating 791

facilities owned directly or indirectly by a corporation that 792
was formed prior to 1960 by investor-owned utilities for the 793
original purpose of providing power to the federal government 794
for use in the nation's defense or in furtherance of national 795
interests, including the Ohio valley electric corporation. 796
(B) For the purposes of this chapter, a retail electric 797

service component shall be deemed a competitive retail electric 798
service if the service component is competitive pursuant to a 799
declaration by a provision of the Revised Code or pursuant to an 800
order of the public utilities commission authorized under 801
division (A) of section 4928.04 of the Revised Code. Otherwise, 802
the service component shall be deemed a noncompetitive retail 803
electric service. 804
Sec. 4928.142. (A) For the purpose of complying with 805

section 4928.141 of the Revised Code and subject to division (D) 806
of this section and, as applicable, subject to the rate plan 807
l_133_1512-1
requirement of division (A) of section 4928.141 of the Revised 808

Code, an electric distribution utility may establish a standard 809
service offer price for retail electric generation service that 810
is delivered to the utility under a market-rate offer. 811
(1) The market-rate offer shall be determined through a 812

competitive bidding process that provides for all of the 813
following: 814
(a) Open, fair, and transparent competitive solicitation; 815
(b) Clear product definition; 816
(c) Standardized bid evaluation criteria; 817
(d) Oversight by an independent third party that shall 818

design the solicitation, administer the bidding, and ensure that 819
the criteria specified in division divisions (A)(1)(a) to (c) of 820
this section are met; 821
(e) Evaluation of the submitted bids prior to the 822

selection of the least-cost bid winner or winners. 823
No generation supplier shall be prohibited from 824

participating in the bidding process. 825
(2) The public utilities commission shall modify rules, or 826

adopt new rules as necessary, concerning the conduct of the 827
competitive bidding process and the qualifications of bidders, 828
which rules shall foster supplier participation in the bidding 829
process and shall be consistent with the requirements of 830
division (A)(1) of this section. 831
(B) Prior to initiating a competitive bidding process for 832

a market-rate offer under division (A) of this section, the 833
electric distribution utility shall file an application with the 834
commission. An electric distribution utility may file its 835
l_133_1512-1
application with the commission prior to the effective date of 836

the commission rules required under division (A)(2) of this 837
section, and, as the commission determines necessary, the 838
utility shall immediately conform its filing to the rules upon 839
their taking effect. 840
An application under this division shall detail the 841

electric distribution utility's proposed compliance with the 842
requirements of division (A)(1) of this section and with 843
commission rules under division (A)(2) of this section and 844
demonstrate that all of the following requirements are met: 845
(1) The electric distribution utility or its transmission 846

service affiliate belongs to at least one regional transmission 847
organization that has been approved by the federal energy 848
regulatory commission; or there otherwise is comparable and 849
nondiscriminatory access to the electric transmission grid. 850
(2) Any such regional transmission organization has a 851

market-monitor function and the ability to take actions to 852
identify and mitigate market power or the electric distribution 853
utility's market conduct; or a similar market monitoring 854
function exists with commensurate ability to identify and 855
monitor market conditions and mitigate conduct associated with 856
the exercise of market power. 857
(3) A published source of information is available 858

publicly or through subscription that identifies pricing 859
information for traded electricity on- and off-peak energy 860
products that are contracts for delivery beginning at least two 861
years from the date of the publication and is updated on a 862
regular basis. 863
The commission shall initiate a proceeding and, within 864

l_133_1512-1
ninety days after the application's filing date, shall determine 865
by order whether the electric distribution utility and its 866
market-rate offer meet all of the foregoing requirements. If the 867
finding is positive, the electric distribution utility may 868
initiate its competitive bidding process. If the finding is 869
negative as to one or more requirements, the commission in the 870
order shall direct the electric distribution utility regarding 871
how any deficiency may be remedied in a timely manner to the 872
commission's satisfaction; otherwise, the electric distribution 873
utility shall withdraw the application. However, if such remedy 874
is made and the subsequent finding is positive and also if the 875
electric distribution utility made a simultaneous filing under 876
this section and section 4928.143 of the Revised Code, the 877
utility shall not initiate its competitive bid until at least 878
one hundred fifty days after the filing date of those 879
applications. 880
(C) Upon the completion of the competitive bidding process 881

authorized by divisions (A) and (B) of this section, including 882
for the purpose of division (D) of this section, the commission 883
shall select the least-cost bid winner or winners of that 884
process, and such selected bid or bids, as prescribed as retail 885
rates by the commission, shall be the electric distribution 886
utility's standard service offer unless the commission, by order 887
issued before the third calendar day following the conclusion of 888
the competitive bidding process for the market rate offer, 889
determines that one or more of the following criteria were not 890
met: 891
(1) Each portion of the bidding process was 892

oversubscribed, such that the amount of supply bid upon was 893
greater than the amount of the load bid out. 894
l_133_1512-1
(2) There were four or more bidders. 895
(3) At least twenty-five per cent of the load is bid upon 896
by one or more persons other than the electric distribution 897
utility. 898
All costs incurred by the electric distribution utility as 899

a result of or related to the competitive bidding process or to 900
procuring generation service to provide the standard service 901
offer, including the costs of energy and capacity and the costs 902
of all other products and services procured as a result of the 903
competitive bidding process, shall be timely recovered through 904
the standard service offer price, and, for that purpose, the 905
commission shall approve a reconciliation mechanism, other 906
recovery mechanism, or a combination of such mechanisms for the 907
utility. 908
(D) The first application filed under this section by an 909

electric distribution utility that, as of July 31, 2008, 910
directly owns, in whole or in part, operating electric 911
generating facilities that had been used and useful in this 912
state shall require that a portion of that utility's standard 913
service offer load for the first five years of the market rate 914
offer be competitively bid under division (A) of this section as 915
follows: ten per cent of the load in year one, not more than 916
twenty per cent in year two, thirty per cent in year three, 917
forty per cent in year four, and fifty per cent in year five. 918
Consistent with those percentages, the commission shall 919
determine the actual percentages for each year of years one 920
through five. The standard service offer price for retail 921
electric generation service under this first application shall 922
be a proportionate blend of the bid price and the generation 923
service price for the remaining standard service offer load, 924
l_133_1512-1
which latter price shall be equal to the electric distribution 925

utility's most recent standard service offer price, adjusted 926
upward or downward as the commission determines reasonable, 927
relative to the jurisdictional portion of any known and 928
measurable changes from the level of any one or more of the 929
following costs as reflected in that most recent standard 930
service offer price: 931
(1) The electric distribution utility's prudently incurred 932

cost of fuel used to produce electricity; 933
(2) Its prudently incurred purchased power costs; 934
(3) Its Until January 1, 2021, its prudently incurred 935

costs of satisfying the supply and demand portfolio requirements 936
of this state, including, but not limited to, renewable energy 937
resource and energy efficiency requirements, and beginning 938
January 1, 2021, its reasonably and prudently incurred costs of 939
satisfying the energy efficiency requirements and its prudently 940
incurred costs of satisfying the other supply and demand 941
portfolio requirements of this state, including, but not limited 942
to, renewable energy resource requirements; 943
(4) Its costs prudently incurred to comply with 944

environmental laws and regulations, with consideration of the 945
derating of any facility associated with those costs. 946
In making any adjustment to the most recent standard 947

service offer price on the basis of costs described in division 948
(D) of this section, the commission shall include the benefits 949
that may become available to the electric distribution utility 950
as a result of or in connection with the costs included in the 951
adjustment, including, but not limited to, the utility's receipt 952
of emissions credits or its receipt of tax benefits or of other 953
l_133_1512-1
benefits, and, accordingly, the commission may impose such 954

conditions on the adjustment to ensure that any such benefits 955
are properly aligned with the associated cost responsibility. 956
The commission shall also determine how such adjustments will 957
affect the electric distribution utility's return on common 958
equity that may be achieved by those adjustments. The commission 959
shall not apply its consideration of the return on common equity 960
to reduce any adjustments authorized under this division unless 961
the adjustments will cause the electric distribution utility to 962
earn a return on common equity that is significantly in excess 963
of the return on common equity that is earned by publicly traded 964
companies, including utilities, that face comparable business 965
and financial risk, with such adjustments for capital structure 966
as may be appropriate. The burden of proof for demonstrating 967
that significantly excessive earnings will not occur shall be on 968
the electric distribution utility. 969
Additionally, the commission may adjust the electric 970

distribution utility's most recent standard service offer price 971
by such just and reasonable amount that the commission 972
determines necessary to address any emergency that threatens the 973
utility's financial integrity or to ensure that the resulting 974
revenue available to the utility for providing the standard 975
service offer is not so inadequate as to result, directly or 976
indirectly, in a taking of property without compensation 977
pursuant to Section 19 of Article I, Ohio Constitution. The 978
electric distribution utility has the burden of demonstrating 979
that any adjustment to its most recent standard service offer 980
price is proper in accordance with this division. 981
(E) Beginning in the second year of a blended price under 982

division (D) of this section and notwithstanding any other 983
requirement of this section, the commission may alter 984
l_133_1512-1
prospectively the proportions specified in that division to 985

mitigate any effect of an abrupt or significant change in the 986
electric distribution utility's standard service offer price 987
that would otherwise result in general or with respect to any 988
rate group or rate schedule but for such alteration. Any such 989
alteration shall be made not more often than annually, and the 990
commission shall not, by altering those proportions and in any 991
event, including because of the length of time, as authorized 992
under division (C) of this section, taken to approve the market 993
rate offer, cause the duration of the blending period to exceed 994
ten years as counted from the effective date of the approved 995
market rate offer. Additionally, any such alteration shall be 996
limited to an alteration affecting the prospective proportions 997
used during the blending period and shall not affect any 998
blending proportion previously approved and applied by the 999
commission under this division. 1000
(F) An electric distribution utility that has received 1001

commission approval of its first application under division (C) 1002
of this section shall not, nor ever shall be authorized or 1003
required by the commission to, file an application under section 1004
Sec. 4928.143. (A) For the purpose of complying with 1006

section 4928.141 of the Revised Code, an electric distribution 1007
utility may file an application for public utilities commission 1008
approval of an electric security plan as prescribed under 1009
division (B) of this section. The utility may file that 1010
application prior to the effective date of any rules the 1011
commission may adopt for the purpose of this section, and, as 1012
the commission determines necessary, the utility immediately 1013
shall conform its filing to those rules upon their taking 1014
effect. 1015
l_133_1512-1
(B) Notwithstanding any other provision of Title XLIX of 1016

the Revised Code to the contrary except division (D) of this 1017
section, divisions (I), (J), and (K) of section 4928.20, 1018
division (E) of section 4928.64, and section 4928.69 of the 1019
Revised Code: 1020
(1) An electric security plan shall include provisions 1021

relating to the supply and pricing of electric generation 1022
service. In addition, if the proposed electric security plan has 1023
a term longer than three years, it may include provisions in the 1024
plan to permit the commission to test the plan pursuant to 1025
division (E) of this section and any transitional conditions 1026
that should be adopted by the commission if the commission 1027
terminates the plan as authorized under that division. 1028
(2) The plan may provide for or include, without 1029

limitation, any of the following: 1030
(a) Automatic recovery of any of the following costs of 1031

the electric distribution utility, provided the cost is 1032
prudently incurred: the cost of fuel used to generate the 1033
electricity supplied under the offer; the cost of purchased 1034
power supplied under the offer, including the cost of energy and 1035
capacity, and including purchased power acquired from an 1036
affiliate; the cost of emission allowances; and the cost of 1037
federally mandated carbon or energy taxes; 1038
(b) A reasonable allowance for construction work in 1039

progress for any of the electric distribution utility's cost of 1040
constructing an electric generating facility or for an 1041
environmental expenditure for any electric generating facility 1042
of the electric distribution utility, provided the cost is 1043
incurred or the expenditure occurs on or after January 1, 2009. 1044
Any such allowance shall be subject to the construction work in 1045
l_133_1512-1
progress allowance limitations of division (A) of section 1046

4909.15 of the Revised Code, except that the commission may 1047
authorize such an allowance upon the incurrence of the cost or 1048
occurrence of the expenditure. No such allowance for generating 1049
facility construction shall be authorized, however, unless the 1050
commission first determines in the proceeding that there is need 1051
for the facility based on resource planning projections 1052
submitted by the electric distribution utility. Further, no such 1053
allowance shall be authorized unless the facility's construction 1054
was sourced through a competitive bid process, regarding which 1055
process the commission may adopt rules. An allowance approved 1056
under division (B)(2)(b) of this section shall be established as 1057
a nonbypassable surcharge for the life of the facility. 1058
(c) The establishment of a nonbypassable surcharge for the 1059

life of an electric generating facility that is owned or 1060
operated by the electric distribution utility, was sourced 1061
through a competitive bid process subject to any such rules as 1062
the commission adopts under division (B)(2)(b) of this section, 1063
and is newly used and useful on or after January 1, 2009, which 1064
surcharge shall cover all costs of the utility specified in the 1065
application, excluding costs recovered through a surcharge under 1066
division (B)(2)(b) of this section. However, no surcharge shall 1067
be authorized unless the commission first determines in the 1068
proceeding that there is need for the facility based on resource 1069
planning projections submitted by the electric distribution 1070
utility. Additionally, if a surcharge is authorized for a 1071
facility pursuant to plan approval under division (C) of this 1072
section and as a condition of the continuation of the surcharge, 1073
the electric distribution utility shall dedicate to Ohio 1074
consumers the capacity and energy and the rate associated with 1075
the cost of that facility. Before the commission authorizes any 1076
l_133_1512-1
surcharge pursuant to this division, it may consider, as 1077

applicable, the effects of any decommissioning, deratings, and 1078
retirements. 1079
(d) Terms, conditions, or charges relating to limitations 1080

on customer shopping for retail electric generation service, 1081
bypassability, standby, back-up, or supplemental power service, 1082
default service, carrying costs, amortization periods, and 1083
accounting or deferrals, including future recovery of such 1084
deferrals, as would have the effect of stabilizing or providing 1085
certainty regarding retail electric service; 1086
(e) Automatic increases or decreases in any component of 1087

the standard service offer price; 1088
(f) Consistent with sections 4928.23 to 4928.2318 of the 1089

Revised Code, both of the following: 1090
(i) Provisions for the electric distribution utility to 1091

securitize any phase-in, inclusive of carrying charges, of the 1092
utility's standard service offer price, which phase-in is 1093
authorized in accordance with section 4928.144 of the Revised 1094
Code; 1095
(ii) Provisions for the recovery of the utility's cost of 1096

securitization. 1097
(g) Provisions relating to transmission, ancillary, 1098

congestion, or any related service required for the standard 1099
service offer, including provisions for the recovery of any cost 1100
of such service that the electric distribution utility incurs on 1101
or after that date pursuant to the standard service offer; 1102
(h) Provisions regarding the utility's distribution 1103

service, including, without limitation and notwithstanding any 1104
provision of Title XLIX of the Revised Code to the contrary, 1105
l_133_1512-1
provisions regarding single issue ratemaking, a revenue 1106

decoupling mechanism or any other incentive ratemaking, and 1107
provisions regarding distribution infrastructure and 1108
modernization incentives for the electric distribution utility. 1109
The latter may include a long-term energy delivery 1110
infrastructure modernization plan for that utility or any plan 1111
providing for the utility's recovery of costs, including lost 1112
revenue, shared savings but only through December 31, 2020, and 1113
avoided costs, and a just and reasonable rate of return on such 1114
infrastructure modernization. As part of its determination as to 1115
whether to allow in an electric distribution utility's electric 1116
security plan inclusion of any provision described in division 1117
(B)(2)(h) of this section, the commission shall examine the 1118
reliability of the electric distribution utility's distribution 1119
system and ensure that customers' and the electric distribution 1120
utility's expectations are aligned and that the electric 1121
distribution utility is placing sufficient emphasis on and 1122
dedicating sufficient resources to the reliability of its 1123
distribution system. 1124
(i) Provisions under which the electric distribution 1125

utility may implement economic development, job retention, and 1126
energy efficiency programs, which provisions may allocate 1127
program costs across all classes of customers of the utility and 1128
those of electric distribution utilities in the same holding 1129
company system, except that, beginning January 1, 2021, the 1130
commission shall approve recovery of costs for energy efficiency 1131
programs only if those costs are reasonably and prudently 1132
incurred. 1133
(C)(1) The burden of proof in the proceeding shall be on 1134

the electric distribution utility. The commission shall issue an 1135
order under this division for an initial application under this 1136
l_133_1512-1
section not later than one hundred fifty days after the 1137
application's filing date and, for any subsequent application by 1138
the utility under this section, not later than two hundred 1139
seventy-five days after the application's filing date. Subject 1140
to division (D) of this section, the commission by order shall 1141
approve or modify and approve an application filed under 1142
division (A) of this section if it finds that the electric 1143
security plan so approved, including its pricing and all other 1144
terms and conditions, including any deferrals and any future 1145
recovery of deferrals, is more favorable in the aggregate as 1146
compared to the expected results that would otherwise apply 1147
under section 4928.142 of the Revised Code. Additionally, if the 1148
commission so approves an application that contains a surcharge 1149
under division (B)(2)(b) or (c) of this section, the commission 1150
shall ensure that the benefits derived for any purpose for which 1151
the surcharge is established are reserved and made available to 1152
those that bear the surcharge. Otherwise, the commission by 1153
order shall disapprove the application. 1154
(2)(a) If the commission modifies and approves an 1155

application under division (C)(1) of this section, the electric 1156
distribution utility may withdraw the application, thereby 1157
terminating it, and may file a new standard service offer under 1158
this section or a standard service offer under section 4928.142 1159
of the Revised Code. 1160
(b) If the utility terminates an application pursuant to 1161

division (C)(2)(a) of this section or if the commission 1162
disapproves an application under division (C)(1) of this 1163
section, the commission shall issue such order as is necessary 1164
to continue the provisions, terms, and conditions of the 1165
utility's most recent standard service offer, along with any 1166
expected increases or decreases in fuel costs from those 1167
l_133_1512-1
contained in that offer, until a subsequent offer is authorized 1168

pursuant to this section or section 4928.142 of the Revised 1169
Code, respectively. 1170
(D) Regarding the rate plan requirement of division (A) of 1171

section 4928.141 of the Revised Code, if an electric 1172
distribution utility that has a rate plan that extends beyond 1173
December 31, 2008, files an application under this section for 1174
the purpose of its compliance with division (A) of section 1175
4928.141 of the Revised Code, that rate plan and its terms and 1176
conditions are hereby incorporated into its proposed electric 1177
security plan and shall continue in effect until the date 1178
scheduled under the rate plan for its expiration, and that 1179
portion of the electric security plan shall not be subject to 1180
commission approval or disapproval under division (C) of this 1181
section, and the earnings test provided for in division (F) of 1182
this section shall not apply until after the expiration of the 1183
rate plan. However, that utility may include in its electric 1184
security plan under this section, and the commission may 1185
approve, modify and approve, or disapprove subject to division 1186
(C) of this section, provisions for the incremental recovery or 1187
the deferral of any costs that are not being recovered under the 1188
rate plan and that the utility incurs during that continuation 1189
period to comply with section 4928.141, division (B) of section 1190
4928.64, or division (A) of section 4928.66 of the Revised Code, 1191
except that, beginning January 1, 2021, the commission shall 1192
approve recovery or deferral of costs for compliance with 1193
division (A) of section 4928.66 of the Revised Code only if 1194
those costs are reasonably and prudently incurred. 1195
(E) If an electric security plan approved under division 1196

(C) of this section, except one withdrawn by the utility as 1197
authorized under that division, has a term, exclusive of phase- 1198
l_133_1512-1
ins or deferrals, that exceeds three years from the effective 1199
date of the plan, the commission shall test the plan in the 1200
fourth year, and if applicable, every fourth year thereafter, to 1201
determine whether the plan, including its then-existing pricing 1202
and all other terms and conditions, including any deferrals and 1203
any future recovery of deferrals, continues to be more favorable 1204
in the aggregate and during the remaining term of the plan as 1205
compared to the expected results that would otherwise apply 1206
under section 4928.142 of the Revised Code. The commission shall 1207
also determine the prospective effect of the electric security 1208
plan to determine if that effect is substantially likely to 1209
provide the electric distribution utility with a return on 1210
common equity that is significantly in excess of the return on 1211
common equity that is likely to be earned by publicly traded 1212
companies, including utilities, that face comparable business 1213
and financial risk, with such adjustments for capital structure 1214
as may be appropriate. The burden of proof for demonstrating 1215
that significantly excessive earnings will not occur shall be on 1216
the electric distribution utility. If the test results are in 1217
the negative or the commission finds that continuation of the 1218
electric security plan will result in a return on equity that is 1219
significantly in excess of the return on common equity that is 1220
likely to be earned by publicly traded companies, including 1221
utilities, that will face comparable business and financial 1222
risk, with such adjustments for capital structure as may be 1223
appropriate, during the balance of the plan, the commission may 1224
terminate the electric security plan, but not until it shall 1225
have provided interested parties with notice and an opportunity 1226
to be heard. The commission may impose such conditions on the 1227
plan's termination as it considers reasonable and necessary to 1228
accommodate the transition from an approved plan to the more 1229
advantageous alternative. In the event of an electric security 1230
l_133_1512-1
plan's termination pursuant to this division, the commission 1231

shall permit the continued deferral and phase-in of any amounts 1232
that occurred prior to that termination and the recovery of 1233
those amounts as contemplated under that electric security plan. 1234
(F) With regard to the provisions that are included in an 1235

electric security plan under this section, the commission shall 1236
consider, following the end of each annual period of the plan, 1237
if any such adjustments resulted in excessive earnings as 1238
measured by whether the earned return on common equity of the 1239
electric distribution utility is significantly in excess of the 1240
return on common equity that was earned during the same period 1241
by publicly traded companies, including utilities, that face 1242
comparable business and financial risk, with such adjustments 1243
for capital structure as may be appropriate. Consideration also 1244
shall be given to the capital requirements of future committed 1245
investments in this state. The burden of proof for demonstrating 1246
that significantly excessive earnings did not occur shall be on 1247
the electric distribution utility. If the commission finds that 1248
such adjustments, in the aggregate, did result in significantly 1249
excessive earnings, it shall require the electric distribution 1250
utility to return to consumers the amount of the excess by 1251
prospective adjustments; provided that, upon making such 1252
prospective adjustments, the electric distribution utility shall 1253
have the right to terminate the plan and immediately file an 1254
application pursuant to section 4928.142 of the Revised Code. 1255
Upon termination of a plan under this division, rates shall be 1256
set on the same basis as specified in division (C)(2)(b) of this 1257
section, and the commission shall permit the continued deferral 1258
and phase-in of any amounts that occurred prior to that 1259
termination and the recovery of those amounts as contemplated 1260
under that electric security plan. In making its determination 1261
l_133_1512-1
of significantly excessive earnings under this division, the 1262

commission shall not consider, directly or indirectly, the 1263
revenue, expenses, or earnings of any affiliate or parent 1264
company. 1265
Sec. 4928.147. (A) If, as of the effective date of this 1266

section, the public utilities commission has issued an order 1267
granting an electric distribution utility recovery for costs 1268
associated with the utility's contractual commitments related to 1269
a legacy generation resource, that order shall continue until 1270
the order naturally expires. However, the commission may renew 1271
the order through December 31, 2030, if the utility meets 1272
certain criteria, which the commission shall establish. The 1273
criteria may include items such as demonstrating that the 1274
resulting revenue from the contractual commitments is greater 1275
than the costs associated with the commitments. 1276
(B) If the commission renews an order under division (A) 1277

of this section, the commission shall establish a nonbypassable 1278
rate mechanism for recovery of legacy generation resource costs 1279
through December 31, 2030, from customers of all electric 1280
distribution utilities in this state, in accordance with both of 1281
the following: 1282
(1) The commission shall determine, every three years, the 1283
prudence and reasonableness of the actions of utilities with 1284
ownership interests in the legacy generation resource, including 1285
their decisions related to offering the contractual commitment 1286
into the wholesale markets, and whether the revenue from the 1287
contractual commitments is greater than the costs associated 1288
with the commitments. The commission shall exclude from recovery 1289
under this section those costs that it determines imprudent and 1290
unreasonable. 1291
l_133_1512-1
(2) The commission shall determine the proper rate 1292

mechanism for recovering the legacy generation resource costs, 1293
provided, however, that the monthly charge shall not exceed one 1294
dollar and fifty cents per customer per month for residential 1295
customers. For all other customer classes, the commission shall 1296
establish comparable monthly caps for each at or below one 1297
thousand five hundred dollars per customer per month. 1298
Sec. 4928.148. (A) The public utilities commission shall 1299

authorize an electric distribution utility to adopt such 1300
accounting practices as the commission determines to be 1301
reasonable for the purpose of reconciling any over or under 1302
collection of costs authorized for recovery under section 1303
4928.147 of the Revised Code during the period ending December 1304
31, 2030. The commission may reasonably condition the 1305
authorization of such accounting practices. 1306
(B) After December 31, 2030, the commission shall 1307

authorize a charge or credit that may be in effect after that 1308
date, for the purpose of reconciling actual revenue collected 1309
under section 4928.147 of the Revised Code during the period 1310
ending December 31, 2030, with actual allowable costs prudently 1311
incurred during the same period. Such charge and credit shall 1312
only be authorized for a period of time beyond December 31, 1313
2030, as may be reasonably necessary to complete the 1314
reconciliation. 1315
Sec. 4928.47. (A) An electric distribution utility may, on 1316

a nondiscriminatory basis and subject to approval by the public 1317
utilities commission, enter into an agreement having a term of 1318
three years or more with a mercantile customer for the purpose 1319
of constructing a customer-sited renewable energy resource in 1320
this state that will provide the mercantile customer with a 1321
l_133_1512-1
material portion of the customer's electricity requirements. 1322
(B) Any direct or indirect costs, including costs for 1323

infrastructure development or generation, associated with the 1324
in-state customer-sited renewable energy resource shall be paid 1325
for solely by the utility and the mercantile customer. At no 1326
point shall the commission authorize the utility to collect, nor 1327
shall the utility ever collect, any of those costs from any 1328
customer other than the mercantile customer. 1329
Sec. 4928.64. (A)(1) As used in this section, "qualifying 1330

renewable energy resource" means a renewable energy resource, as 1331
defined in section 4928.01 of the Revised Code that: 1332
(a) Has a placed-in-service date on or after January 1, 1333

1998; 1334
(b) Is any run-of-the-river hydroelectric facility that 1335

has an in-service date on or after January 1, 1980; 1336
(c) Is a small hydroelectric facility; 1337
(d) Is created on or after January 1, 1998, by the 1338

modification or retrofit of any facility placed in service prior 1339
to January 1, 1998; or 1340
(e) Is a mercantile customer-sited renewable energy 1341

resource, whether new or existing, that the mercantile customer 1342
commits for integration into the electric distribution utility's 1343
demand-response, energy efficiency, or peak demand reduction 1344
programs as provided under division (A)(2)(c) of section 4928.66 1345
of the Revised Code, including, but not limited to, any of the 1346
following: 1347
(i) A resource that has the effect of improving the 1348

relationship between real and reactive power; 1349
l_133_1512-1
(ii) A resource that makes efficient use of waste heat or 1350

other thermal capabilities owned or controlled by a mercantile 1351
customer; 1352
(iii) Storage technology that allows a mercantile customer 1353

more flexibility to modify its demand or load and usage 1354
characteristics; 1355
(iv) Electric generation equipment owned or controlled by 1356

a mercantile customer that uses a renewable energy resource. 1357
(2) For the purpose of this section and as it considers 1358

appropriate, the public utilities commission may classify any 1359
new technology as such a qualifying renewable energy resource. 1360
(B)(1) By 2027 and thereafter 2026, an electric 1361

distribution utility shall provide from qualifying renewable 1362
energy resources, including, at its discretion, qualifying 1363
renewable energy resources obtained pursuant to an electricity 1364
supply contract, a portion of the electricity supply required 1365
for its standard service offer under section 4928.141 of the 1366
Revised Code, and an electric services company shall provide a 1367
portion of its electricity supply for retail consumers in this 1368
state from qualifying renewable energy resources, including, at 1369
its discretion, qualifying renewable energy resources obtained 1370
pursuant to an electricity supply contract. That portion shall 1371
equal twelve eight and one-half per cent of the total number of 1372
kilowatt hours of electricity sold by the subject utility or 1373
company to any and all retail electric consumers whose electric 1374
load centers are served by that utility and are located within 1375
the utility's certified territory or, in the case of an electric 1376
services company, are served by the company and are located 1377
within this state. However, nothing in this section precludes a 1378
utility or company from providing a greater percentage. 1379
l_133_1512-1
(2) The portion required under division (B)(1) of this 1380

section shall be generated from renewable energy resources, 1381
including one-half thirty-four hundredths of one per cent from 1382
solar energy resources, in accordance with the following 1383
benchmarks: 1384
By end of year Renewable energy Solar energy 1385

resources resources 1386
2009 0.25% 0.004% 1387

2010 0.50% 0.010% 1388
2011 1% 0.030% 1389
2012 1.5% 0.060% 1390
2013 2% 0.090% 1391
2014 2.5% 0.12% 1392
2015 2.5% 0.12% 1393
2016 2.5% 0.12% 1394
2017 3.5% 0.15% 1395
2018 4.5% 0.18% 1396
2019 5.5% 0.22% 1397
2020 6.56% 0.260.24% 1398
2021 7.56.5% 0.30.26% 1399
2022 8.57% 0.340.28% 1400
2023 9.57.5% 0.380.30% 1401
2024 10.58% 0.420.32% 1402
2025 11.58.5% 0.460.34% 1403
2026 and each calendar 12.5% 0.5%. 1404
year thereafter 1405
(3) The qualifying renewable energy resources implemented 1406

by the utility or company shall be met either: 1407
(a) Through facilities located in this state; or 1408

l_133_1512-1
(b) With resources that can be shown to be deliverable 1409

into this state. 1410
(C)(1) The commission annually shall review an electric 1411

distribution utility's or electric services company's compliance 1412
with the most recent applicable benchmark under division (B)(2) 1413
of this section and, in the course of that review, shall 1414
identify any undercompliance or noncompliance of the utility or 1415
company that it determines is weather-related, related to 1416
equipment or resource shortages for qualifying renewable energy 1417
resources as applicable, or is otherwise outside the utility's 1418
or company's control. 1419
(2) Subject to the cost cap provisions of division (C)(3) 1420

of this section, if the commission determines, after notice and 1421
opportunity for hearing, and based upon its findings in that 1422
review regarding avoidable undercompliance or noncompliance, but 1423
subject to division (C)(4) of this section, that the utility or 1424
company has failed to comply with any such benchmark, the 1425
commission shall impose a renewable energy compliance payment on 1426
the utility or company. 1427
(a) The compliance payment pertaining to the solar energy 1428

resource benchmarks under division (B)(2) of this section shall 1429
be an amount per megawatt hour of undercompliance or 1430
noncompliance in the period under review, as follows: 1431
(i) Three hundred dollars for 2014, 2015, and 2016; 1432
(ii) Two hundred fifty dollars for 2017 and 2018; 1433
(iii) Two hundred dollars for 2019 and 2020; 1434
(iv) Similarly reduced every two years thereafter through 1435

2026 2025 by fifty dollars, to a minimum of fifty dollars. 1436
l_133_1512-1
(b) The compliance payment pertaining to the renewable 1437

energy resource benchmarks under division (B)(2) of this section 1438
shall equal the number of additional renewable energy credits 1439
that the electric distribution utility or electric services 1440
company would have needed to comply with the applicable 1441
benchmark in the period under review times an amount that shall 1442
begin at forty-five dollars and shall be adjusted annually by 1443
the commission to reflect any change in the consumer price index 1444
as defined in section 101.27 of the Revised Code, but shall not 1445
be less than forty-five dollars. 1446
(c) The compliance payment shall not be passed through by 1447

the electric distribution utility or electric services company 1448
to consumers. The compliance payment shall be remitted to the 1449
commission, for deposit to the credit of the advanced energy 1450
fund created under section 4928.61 of the Revised Code. Payment 1451
of the compliance payment shall be subject to such collection 1452
and enforcement procedures as apply to the collection of a 1453
forfeiture under sections 4905.55 to 4905.60 and 4905.64 of the 1454
Revised Code. 1455
(3) An electric distribution utility or an electric 1456

services company need not comply with a benchmark under division 1457
(B)(2) of this section to the extent that its reasonably 1458
expected cost of that compliance exceeds its reasonably expected 1459
cost of otherwise producing or acquiring the requisite 1460
electricity by three per cent or more. The cost of compliance 1461
shall be calculated as though any exemption from taxes and 1462
assessments had not been granted under section 5727.75 of the 1463
Revised Code. 1464
(4)(a) An electric distribution utility or electric 1465

services company may request the commission to make a force 1466
l_133_1512-1
majeure determination pursuant to this division regarding all or 1467

part of the utility's or company's compliance with any minimum 1468
benchmark under division (B)(2) of this section during the 1469
period of review occurring pursuant to division (C)(2) of this 1470
section. The commission may require the electric distribution 1471
utility or electric services company to make solicitations for 1472
renewable energy resource credits as part of its default service 1473
before the utility's or company's request of force majeure under 1474
this division can be made. 1475
(b) Within ninety days after the filing of a request by an 1476

electric distribution utility or electric services company under 1477
division (C)(4)(a) of this section, the commission shall 1478
determine if qualifying renewable energy resources are 1479
reasonably available in the marketplace in sufficient quantities 1480
for the utility or company to comply with the subject minimum 1481
benchmark during the review period. In making this 1482
determination, the commission shall consider whether the 1483
electric distribution utility or electric services company has 1484
made a good faith effort to acquire sufficient qualifying 1485
renewable energy or, as applicable, solar energy resources to so 1486
comply, including, but not limited to, by banking or seeking 1487
renewable energy resource credits or by seeking the resources 1488
through long-term contracts. Additionally, the commission shall 1489
consider the availability of qualifying renewable energy or 1490
solar energy resources in this state and other jurisdictions in 1491
the PJM interconnection regional transmission organization, 1492
L.L.C., or its successor and the midcontinent independent system 1493
operator or its successor. 1494
(c) If, pursuant to division (C)(4)(b) of this section, 1495

the commission determines that qualifying renewable energy or 1496
solar energy resources are not reasonably available to permit 1497
l_133_1512-1
the electric distribution utility or electric services company 1498

to comply, during the period of review, with the subject minimum 1499
benchmark prescribed under division (B)(2) of this section, the 1500
commission shall modify that compliance obligation of the 1501
utility or company as it determines appropriate to accommodate 1502
the finding. Commission modification shall not automatically 1503
reduce the obligation for the electric distribution utility's or 1504
electric services company's compliance in subsequent years. If 1505
it modifies the electric distribution utility or electric 1506
services company obligation under division (C)(4)(c) of this 1507
section, the commission may require the utility or company, if 1508
sufficient renewable energy resource credits exist in the 1509
marketplace, to acquire additional renewable energy resource 1510
credits in subsequent years equivalent to the utility's or 1511
company's modified obligation under division (C)(4)(c) of this 1512
section. 1513
(5) The commission shall establish a process to provide 1514

for at least an annual review of the renewable energy resource 1515
market in this state and in the service territories of the 1516
regional transmission organizations that manage transmission 1517
systems located in this state. The commission shall use the 1518
results of this study to identify any needed changes to the 1519
amount of the renewable energy compliance payment specified 1520
under divisions (C)(2)(a) and (b) of this section. Specifically, 1521
the commission may increase the amount to ensure that payment of 1522
compliance payments is not used to achieve compliance with this 1523
section in lieu of actually acquiring or realizing energy 1524
derived from qualifying renewable energy resources. However, if 1525
the commission finds that the amount of the compliance payment 1526
should be otherwise changed, the commission shall present this 1527
finding to the general assembly for legislative enactment. 1528
l_133_1512-1
(D) The commission annually shall submit to the general 1529

assembly in accordance with section 101.68 of the Revised Code a 1530
report describing all of the following: 1531
(1) The compliance of electric distribution utilities and 1532

electric services companies with division (B) of this section; 1533
(2) The average annual cost of renewable energy credits 1534

purchased by utilities and companies for the year covered in the 1535
report; 1536
(3) Any strategy for utility and company compliance or for 1537
encouraging the use of qualifying renewable energy resources in 1538
supplying this state's electricity needs in a manner that 1539
considers available technology, costs, job creation, and 1540
economic impacts. 1541
The commission shall begin providing the information 1542

described in division (D)(2) of this section in each report 1543
submitted after September 10, 2012. The commission shall allow 1544
and consider public comments on the report prior to its 1545
submission to the general assembly. Nothing in the report shall 1546
be binding on any person, including any utility or company for 1547
the purpose of its compliance with any benchmark under division 1548
(B) of this section, or the enforcement of that provision under 1549
division (C) of this section. 1550
(E) All costs incurred by an electric distribution utility 1551

in complying with the requirements of this section shall be 1552
bypassable by any consumer that has exercised choice of supplier 1553
under section 4928.03 of the Revised Code. 1554
Sec. 4928.644. (A) The public utilities commission may 1555

reduce either baseline described in section 4928.643 of the 1556
Revised Code to adjust for new economic growth in the electric 1557
l_133_1512-1
distribution utility's certified territory or in the electric 1558

services company's service area in this state. 1559
(B) To facilitate the competitiveness of mercantile 1560

customers located in this state that are registered as self- 1561
assessing purchasers under division (C) of section 5727.81 of 1562
the Revised Code, the commission shall reduce both baselines 1563
described in section 4928.643 of the Revised Code to exclude the 1564
load and usage of those self-assessing purchasers. Upon the 1565
effective date of this reduction, both of the following shall 1566
apply: 1567
(1) Any electric distribution utility or electric services 1568

company serving such a mercantile customer shall be relieved of 1569
the amount of compliance with section 4928.64 of the Revised 1570
Code that would be required but for the baseline reduction. 1571
(2) Such a mercantile customer shall be exempt from any 1572

bypassable charge imposed under division (E) of section 4928.64 1573
of the Revised Code. 1574
Sec. 4928.66. (A)(1)(a) Beginning in 2009, an electric 1575

distribution utility shall implement energy efficiency programs 1576
that achieve energy savings equivalent to at least three-tenths 1577
of one per cent of the total, annual average, and normalized 1578
kilowatt-hour sales of the electric distribution utility during 1579
the preceding three calendar years to customers in this state. 1580
An energy efficiency program may include a combined heat and 1581
power system placed into service or retrofitted on or after the 1582
effective date of the amendment of this section by S.B. 315 of 1583
the 129th general assembly, September 10, 2012, or a waste 1584
energy recovery system placed into service or retrofitted on or 1585
after September 10, 2012, except that a waste energy recovery 1586
system described in division (A)(38)(b) of section 4928.01 of 1587
l_133_1512-1
the Revised Code may be included only if it was placed into 1588
service between January 1, 2002, and December 31, 2004. For a 1589
waste energy recovery or combined heat and power system, the 1590
savings shall be as estimated by the public utilities 1591
commission. The savings requirement, using such a three-year 1592
average, shall increase to an additional five-tenths of one per 1593
cent in 2010, seven-tenths of one per cent in 2011, eight-tenths 1594
of one per cent in 2012, nine-tenths of one per cent in 2013, 1595
and one per cent in 2014. In 2015 and 2016, an electric 1596
distribution utility shall achieve energy savings equal to the 1597
result of subtracting the cumulative energy savings achieved 1598
since 2009 from the product of multiplying the baseline for 1599
energy savings, described in division (A)(2)(a) of this section, 1600
by four and two-tenths of one per cent. If the result is zero or 1601
less for the year for which the calculation is being made, the 1602
utility shall not be required to achieve additional energy 1603
savings for that year, but may achieve additional energy savings 1604
for that year. Thereafter, the annual savings requirements shall 1605
be, for years 2017, 2018, 2019, and 2020, one per cent of the 1606
baseline, and two per cent each year thereafter, achieving . 1607
In years 2021 through 2029, an electric distribution 1608

utility shall achieve annual energy savings equal to the outcome 1609
of dividing by nine the result of subtracting the cumulative 1610
energy savings that the utility has banked as of December 31, 1611
2018, under division (G) of section 4928.662 of the Revised Code 1612
from fourteen per cent of the utility's baseline for energy 1613
savings for 2021. If the result is zero or less, then the 1614
utility, for years 2021 through 2029, shall demonstrate that the 1615
utility is maintaining cumulative energy savings in excess of 1616
twenty-two per cent by the end of 2027. For A utility 1617
maintaining cumulative energy savings in excess of twenty-two 1618
l_133_1512-1
per cent shall not be required to achieve additional energy 1619

savings for the years 2021 through 2029, but may achieve 1620
additional energy savings for those years. 1621
For purposes of a waste energy recovery or combined heat 1622

and power system, an electric distribution utility shall not 1623
apply more than the total annual percentage of the electric 1624
distribution utility's industrial-customer load, relative to the 1625
electric distribution utility's total load, to the annual energy 1626
savings requirement. 1627
(b) Beginning in 2009, an electric distribution utility 1628

shall implement peak demand reduction programs designed to 1629
achieve a one per cent reduction in peak demand in 2009 and an 1630
additional seventy-five hundredths of one per cent reduction 1631
each year through 2014. In 2015 and 2016, an electric 1632
distribution utility shall achieve a reduction in peak demand 1633
equal to the result of subtracting the cumulative peak demand 1634
reductions achieved since 2009 from the product of multiplying 1635
the baseline for peak demand reduction, described in division 1636
(A)(2)(a) of this section, by four and seventy-five hundredths 1637
of one per cent. If the result is zero or less for the year for 1638
which the calculation is being made, the utility shall not be 1639
required to achieve an additional reduction in peak demand for 1640
that year, but may achieve an additional reduction in peak 1641
demand for that year. In 2017 and each year thereafter through 1642
2020, the utility shall achieve an additional seventy-five 1643
hundredths of one per cent reduction in peak demand. 1644
(2) For the purposes of divisions (A)(1)(a) and (b) of 1645

this section: 1646
(a) The baseline for energy savings under division (A)(1) 1647
(a) of this section shall be the average of the total kilowatt 1648
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hours the electric distribution utility sold in the preceding 1649

three calendar years. The baseline for a peak demand reduction 1650
under division (A)(1)(b) of this section shall be the average 1651
peak demand on the utility in the preceding three calendar 1652
years, except that the commission may reduce either baseline to 1653
adjust for new economic growth in the utility's certified 1654
territory. Neither baseline shall include the load and usage of 1655
any of the following customers: 1656
(i) Beginning January 1, 2017, a customer for which a 1657

reasonable arrangement has been approved under section 4905.31 1658
of the Revised Code; 1659
(ii) A customer that has opted out of the utility's 1660

portfolio plan under section 4928.6611 of the Revised Code; 1661
(iii) A customer that has opted out of the utility's 1662

portfolio plan under Section 8 of S.B. 310 of the 130th general 1663
assembly. 1664
(b) The commission may amend the benchmarks set forth in 1665
division (A)(1)(a) or (b) of this section if, after application 1666
by the electric distribution utility, the commission determines 1667
that the amendment is necessary because the utility cannot 1668
reasonably achieve the benchmarks due to regulatory, economic, 1669
or technological reasons beyond its reasonable control. 1670
(c) Compliance with divisions (A)(1)(a) and (b) of this 1671

section shall be measured by including the effects of all 1672
demand-response programs for mercantile customers of the subject 1673
electric distribution utility, all waste energy recovery systems 1674
and all combined heat and power systems, and all such mercantile 1675
customer-sited energy efficiency, including waste energy 1676
recovery and combined heat and power, and peak demand reduction 1677
l_133_1512-1
programs, adjusted upward by the appropriate loss factors. Any 1678

mechanism designed to recover the cost of energy efficiency, 1679
including waste energy recovery and combined heat and power, and 1680
peak demand reduction programs under divisions (A)(1)(a) and (b) 1681
of this section may exempt mercantile customers that commit 1682
their demand-response or other customer-sited capabilities, 1683
whether existing or new, for integration into the electric 1684
distribution utility's demand-response, energy efficiency, 1685
including waste energy recovery and combined heat and power, or 1686
peak demand reduction programs, if the commission determines 1687
that that exemption reasonably encourages such customers to 1688
commit those capabilities to those programs. If a mercantile 1689
customer makes such existing or new demand-response, energy 1690
efficiency, including waste energy recovery and combined heat 1691
and power, or peak demand reduction capability available to an 1692
electric distribution utility pursuant to division (A)(2)(c) of 1693
this section, the electric utility's baseline under division (A) 1694
(2)(a) of this section shall be adjusted to exclude the effects 1695
of all such demand-response, energy efficiency, including waste 1696
energy recovery and combined heat and power, or peak demand 1697
reduction programs that may have existed during the period used 1698
to establish the baseline. The baseline also shall be normalized 1699
for changes in numbers of customers, sales, weather, peak 1700
demand, and other appropriate factors so that the compliance 1701
measurement is not unduly influenced by factors outside the 1702
control of the electric distribution utility. 1703
(d)(i) Programs implemented by a utility may include the 1704

following: 1705
(I) Demand-response programs; 1706
(II) Smart grid investment programs, provided that such 1707

l_133_1512-1
programs are demonstrated to be cost-beneficial; 1708
(III) Customer-sited programs, including waste energy 1709

recovery and combined heat and power systems; 1710
(IV) Transmission and distribution infrastructure 1711

improvements that reduce line losses; 1712
(V) Energy efficiency savings and peak demand reduction 1713

that are achieved, in whole or in part, as a result of funding 1714
provided from the universal service fund established by section 1715
4928.51 of the Revised Code to benefit low-income customers 1716
through programs that include, but are not limited to, energy 1717
audits, the installation of energy efficiency insulation, 1718
appliances, and windows, and other weatherization measures. 1719
(ii) No energy efficiency or peak demand reduction 1720

achieved under divisions (A)(2)(d)(i)(IV) and (V) of this 1721
section shall qualify for shared savings. 1722
(iii) Division (A)(2)(c) of this section shall be applied 1723

to include facilitating efforts by a mercantile customer or 1724
group of those customers to offer customer-sited demand- 1725
response, energy efficiency, including waste energy recovery and 1726
combined heat and power, or peak demand reduction capabilities 1727
to the electric distribution utility as part of a reasonable 1728
arrangement submitted to the commission pursuant to section 1729
(e) No programs or improvements described in division (A) 1731

(2)(d) of this section shall conflict with any statewide 1732
building code adopted by the board of building standards. 1733
(B) In accordance with rules it shall adopt, the public 1734

utilities commission shall produce and docket at the commission 1735
an annual report containing the results of its verification of 1736
l_133_1512-1
the annual levels of energy efficiency and of peak demand 1737

reductions achieved by each electric distribution utility 1738
pursuant to division (A) of this section. A copy of the report 1739
shall be provided to the consumers' counsel. 1740
(C) If the commission determines, after notice and 1741

opportunity for hearing and based upon its report under division 1742
(B) of this section, that an electric distribution utility has 1743
failed to comply with an energy efficiency or peak demand 1744
reduction requirement of division (A) of this section, the 1745
commission shall assess a forfeiture on the utility as provided 1746
under sections 4905.55 to 4905.60 and 4905.64 of the Revised 1747
Code, either in the amount, per day per undercompliance or 1748
noncompliance, relative to the period of the report, equal to 1749
that prescribed for noncompliances under section 4905.54 of the 1750
Revised Code, or in an amount equal to the then existing market 1751
value of one renewable energy credit per megawatt hour of 1752
undercompliance or noncompliance. Revenue from any forfeiture 1753
assessed under this division shall be deposited to the credit of 1754
the advanced energy fund created under section 4928.61 of the 1755
Revised Code. 1756
(D) The commission may establish rules regarding the 1757

content of an application by an electric distribution utility 1758
for commission approval of a revenue decoupling mechanism under 1759
this division. Such an application shall not be considered an 1760
application to increase rates and may be included as part of a 1761
proposal to establish, continue, or expand energy efficiency or 1762
conservation programs. The commission by order may approve an 1763
application under this division if it determines both that the 1764
revenue decoupling mechanism provides for the recovery of 1765
revenue that otherwise may be forgone by the utility as a result 1766
of or in connection with the implementation by the electric 1767
l_133_1512-1
distribution utility of any energy efficiency or energy 1768

conservation programs and reasonably aligns the interests of the 1769
utility and of its customers in favor of those programs. 1770
(E) The commission additionally shall adopt rules that 1771

require an electric distribution utility to provide a customer 1772
upon request with two years' consumption data in an accessible 1773
form. 1774
Sec. 4928.661. (A) Beginning January 1, 2021, an electric 1775

distribution utility may recover costs for energy efficiency 1776
programs implemented under section 4928.66 of the Revised Code 1777
as long as those costs are reasonably and prudently incurred. 1778
(B) Beginning on January 1, 2021, no electric distribution 1779

utility may receive shared savings or similar incentives for 1780
energy efficiency programs implemented under section 4928.66 of 1781
the Revised Code. Prior to that date: 1782
(1) No energy efficiency or peak demand reduction achieved 1783

under divisions (A)(2)(d)(i)(IV) and (V) of section 4928.66 of 1784
the Revised Code shall qualify for shared savings. 1785
(2) No energy efficiency or peak demand reduction achieved 1786

under division (E) of section 4928.662 of the Revised Code shall 1787
qualify for shared savings. 1788
Sec. 4928.662. For the purpose of measuring and 1789

determining compliance with the energy efficiency and peak 1790
demand reduction requirements under section 4928.66 of the 1791
Revised Code, the public utilities commission shall count and 1792
recognize compliance as follows: 1793
(A) Energy efficiency savings and peak demand reduction 1794

achieved through actions taken by customers or through electric 1795
distribution utility programs that comply with federal standards 1796
l_133_1512-1
for either or both energy efficiency and peak demand reduction 1797
requirements, including resources associated with such savings 1798
or reduction that are recognized as capacity resources by the 1799
regional transmission organization operating in Ohio in 1800
compliance with section 4928.12 of the Revised Code, shall count 1801
toward compliance with the energy efficiency and peak demand 1802
reduction requirements. 1803
(B) Energy efficiency savings and peak demand reduction 1804

achieved on and after the effective date of S.B. 310 of the 1805
130th general assembly, September 12, 2014, shall be measured on 1806
the higher of an as found or deemed basis, except that, solely 1807
at the option of the electric distribution utility, such savings 1808
and reduction achieved since 2006 may also be measured using 1809
this method. For new construction, the energy efficiency savings 1810
and peak demand reduction shall be counted based on 2008 federal 1811
standards, provided that when new construction replaces an 1812
existing facility, the difference in energy consumed, energy 1813
intensity, and peak demand between the new and replaced facility 1814
shall be counted toward meeting the energy efficiency and peak 1815
demand reduction requirements. 1816
(C) The commission shall count both the energy efficiency 1817
savings and peak demand reduction on an annualized basis. 1818
(D) The commission shall count both the energy efficiency 1819
savings and peak demand reduction on a gross savings basis. 1820
(E) The commission shall count energy efficiency savings 1821

and peak demand reductions associated with transmission and 1822
distribution infrastructure improvements that reduce line 1823
losses. No energy efficiency or peak demand reduction achieved 1824
under division (E) of this section shall qualify for shared 1825
savings. 1826
l_133_1512-1
(F) Energy efficiency savings and peak demand reduction 1827

amounts approved by the commission shall continue to be counted 1828
toward achieving the energy efficiency and peak demand reduction 1829
requirements as long as the requirements remain in effect. 1830
(G)(1) Any energy efficiency savings or peak demand 1831

reduction amount achieved in excess of the requirements may, at 1832
the discretion of the electric distribution utility but subject 1833
to division (G)(2) of this section, be banked and applied toward 1834
achieving the energy efficiency or peak demand reduction 1835
requirements in future years. 1836
(2) Banked energy efficiency savings shall be applied 1837

toward achieving compliance with the energy efficiency 1838
requirements only beginning in 2021 and in accordance with 1839
division (A)(1)(a) of section 4928.66 of the Revised Code. 1840
Sec. 4928.6610. As used in sections 4928.6611 to 4928.6616 1841

4928.6615 of the Revised Code: 1842
(A) "Customer" means any customer of an electric 1843

distribution utility to which either of the following applies: 1844
(1) The customer receives service above the primary 1845

voltage level as determined by the utility's tariff 1846
classification. 1847
(2) The customer is a commercial or industrial customer to 1848

which both of the following apply: 1849
(a) The customer receives electricity through a meter of 1850

an end user or through more than one meter at a single location 1851
in a quantity that exceeds forty-five million kilowatt hours of 1852
electricity for the preceding calendar year. 1853
(b) The customer has made a written request for 1854

l_133_1512-1
registration as a self-assessing purchaser pursuant to section 1855

(B) "Energy intensity" means the amount of energy, from 1857

electricity, used or consumed per unit of production. 1858
(C) "Portfolio plan" means the comprehensive energy 1859

efficiency and peak-demand reduction program portfolio plan 1860
required under rules adopted by the public utilities commission 1861
and codified in Chapter 4901:1-39 of the Administrative Code or 1862
hereafter recodified or amended. 1863
Sec. 4928.80. (A) Each electric distribution utility shall 1864

file with the public utilities commission a tariff applicable to 1865
county fairs and agricultural societies that includes either of 1866
the following: 1867
(1) A fixed monthly service fee; 1868
(2) An energy charge on a kilowatt-hour basis. 1869
(B) The minimum monthly charge shall not exceed the fixed 1870
monthly service fee and the customer shall not be subject to any 1871
demand-based riders. 1872
(C) The electric distribution utility shall be eligible to 1873

recover any revenue loss associated with customer migration to 1874
this new tariff. 1875
Sec. 5727.231. The taxable property of an electric company 1876

that is or is part of a qualifying nuclear resource certified 1877
under section 3706.41 of the Revised Code for any part of a tax 1878
year may not be assessed for that year under section 5727.23 of 1879
the Revised Code at less than the taxable value of such property 1880
as of the effective date of H.B. 6 of the 133rd general 1881
assembly. The electric company may not value such property at 1882
l_133_1512-1
less than its taxable value as of that date in its annual report 1883
filed under section 5727.08 of the Revised Code or file a 1884
petition for reassessment seeking a reduction in taxable value 1885
below the taxable value of such property as of that date, and 1886
the tax commissioner may not grant such a reduction, under 1887
Sec. 5727.75. (A) For purposes of this section: 1889
(1) "Qualified energy project" means an energy project 1890

certified by the director of development services pursuant to 1891
this section. 1892
(2) "Energy project" means a project to provide electric 1893

power through the construction, installation, and use of an 1894
energy facility. 1895
(3) "Alternative energy zone" means a county declared as 1896

such by the board of county commissioners under division (E)(1) 1897
(b) or (c) of this section. 1898
(4) "Full-time equivalent employee" means the total number 1899

of employee-hours for which compensation was paid to individuals 1900
employed at a qualified energy project for services performed at 1901
the project during the calendar year divided by two thousand 1902
eighty hours. 1903
(5) "Solar energy project" means an energy project 1904

composed of an energy facility using solar panels to generate 1905
electricity. 1906
(6) "Internet identifier of record" has the same meaning 1907

as in section 9.312 of the Revised Code. 1908
(B)(1) Tangible personal property of a qualified energy 1909

project using renewable energy resources is exempt from taxation 1910
l_133_1512-1
for tax years 2011 through 2021 if all of the following 1911
conditions are satisfied: 1912
(a) On or before December 31, 2020, the owner or a lessee 1913

pursuant to a sale and leaseback transaction of the project 1914
submits an application to the power siting board for a 1915
certificate under section 4906.20 of the Revised Code, or if 1916
that section does not apply, submits an application for any 1917
approval, consent, permit, or certificate or satisfies any 1918
condition required by a public agency or political subdivision 1919
of this state for the construction or initial operation of an 1920
energy project. 1921
(b) Construction or installation of the energy facility 1922

begins on or after January 1, 2009, and before January 1, 2021. 1923
For the purposes of this division, construction begins on the 1924
earlier of the date of application for a certificate or other 1925
approval or permit described in division (B)(1)(a) of this 1926
section, or the date the contract for the construction or 1927
installation of the energy facility is entered into. 1928
(c) For a qualified energy project with a nameplate 1929

capacity of five twenty megawatts or greater, a board of county 1930
commissioners of a county in which property of the project is 1931
located has adopted a resolution under division (E)(1)(b) or (c) 1932
of this section to approve the application submitted under 1933
division (E) of this section to exempt the property located in 1934
that county from taxation. A board's adoption of a resolution 1935
rejecting an application or its failure to adopt a resolution 1936
approving the application does not affect the tax-exempt status 1937
of the qualified energy project's property that is located in 1938
another county. 1939
(2) If tangible personal property of a qualified energy 1940

l_133_1512-1
project using renewable energy resources was exempt from 1941

taxation under this section beginning in any of tax years 2011 1942
through 2021, and the certification under division (E)(2) of 1943
this section has not been revoked, the tangible personal 1944
property of the qualified energy project is exempt from taxation 1945
for tax year 2022 and all ensuing tax years if the property was 1946
placed into service before January 1, 2022, as certified in the 1947
construction progress report required under division (F)(2) of 1948
this section. Tangible personal property that has not been 1949
placed into service before that date is taxable property subject 1950
to taxation. An energy project for which certification has been 1951
revoked is ineligible for further exemption under this section. 1952
Revocation does not affect the tax-exempt status of the 1953
project's tangible personal property for the tax year in which 1954
revocation occurs or any prior tax year. 1955
(C) Tangible personal property of a qualified energy 1956

project using clean coal technology, advanced nuclear 1957
technology, or cogeneration technology is exempt from taxation 1958
for the first tax year that the property would be listed for 1959
taxation and all subsequent years if all of the following 1960
circumstances are met: 1961
(1) The property was placed into service before January 1, 1962
2021. Tangible personal property that has not been placed into 1963
service before that date is taxable property subject to 1964
taxation. 1965
(2) For such a qualified energy project with a nameplate 1966

capacity of five twenty megawatts or greater, a board of county 1967
commissioners of a county in which property of the qualified 1968
energy project is located has adopted a resolution under 1969
division (E)(1)(b) or (c) of this section to approve the 1970
l_133_1512-1
application submitted under division (E) of this section to 1971

exempt the property located in that county from taxation. A 1972
board's adoption of a resolution rejecting the application or 1973
its failure to adopt a resolution approving the application does 1974
not affect the tax-exempt status of the qualified energy 1975
project's property that is located in another county. 1976
(3) The certification for the qualified energy project 1977

issued under division (E)(2) of this section has not been 1978
revoked. An energy project for which certification has been 1979
revoked is ineligible for exemption under this section. 1980
Revocation does not affect the tax-exempt status of the 1981
project's tangible personal property for the tax year in which 1982
revocation occurs or any prior tax year. 1983
(D) Except as otherwise provided in this section, real 1984

property of a qualified energy project is exempt from taxation 1985
for any tax year for which the tangible personal property of the 1986
qualified energy project is exempted under this section. 1987
(E)(1)(a) A person may apply to the director of 1988

development services for certification of an energy project as a 1989
qualified energy project on or before the following dates: 1990
(i) December 31, 2020, for an energy project using 1991

renewable energy resources; 1992
(ii) December 31, 2017, for an energy project using clean 1993
coal technology, advanced nuclear technology, or cogeneration 1994
technology. 1995
(b) The director shall forward a copy of each application 1996

for certification of an energy project with a nameplate capacity 1997
of five twenty megawatts or greater to the board of county 1998
commissioners of each county in which the project is located and 1999
l_133_1512-1
to each taxing unit with territory located in each of the 2000

affected counties. Any board that receives from the director a 2001
copy of an application submitted under this division shall adopt 2002
a resolution approving or rejecting the application unless it 2003
has adopted a resolution under division (E)(1)(c) of this 2004
section. A resolution adopted under division (E)(1)(b) or (c) of 2005
this section may require an annual service payment to be made in 2006
addition to the service payment required under division (G) of 2007
this section. The sum of the service payment required in the 2008
resolution and the service payment required under division (G) 2009
of this section shall not exceed nine thousand dollars per 2010
megawatt of nameplate capacity located in the county. The 2011
resolution shall specify the time and manner in which the 2012
payments required by the resolution shall be paid to the county 2013
treasurer. The county treasurer shall deposit the payment to the 2014
credit of the county's general fund to be used for any purpose 2015
for which money credited to that fund may be used. 2016
The board shall send copies of the resolution to the owner 2017
of the facility and the director by certified mail or, if the 2018
board has record of an internet identifier of record associated 2019
with the owner or director, by ordinary mail and by that 2020
internet identifier of record. The board shall send such notice 2021
within thirty days after receipt of the application, or a longer 2022
period of time if authorized by the director. 2023
(c) A board of county commissioners may adopt a resolution 2024

declaring the county to be an alternative energy zone and 2025
declaring all applications submitted to the director of 2026
development services under this division after the adoption of 2027
the resolution, and prior to its repeal, to be approved by the 2028
board. 2029
l_133_1512-1
All tangible personal property and real property of an 2030

energy project with a nameplate capacity of five twenty 2031
megawatts or greater is taxable if it is located in a county in 2032
which the board of county commissioners adopted a resolution 2033
rejecting the application submitted under this division or 2034
failed to adopt a resolution approving the application under 2035
division (E)(1)(b) or (c) of this section. 2036
(2) The director shall certify an energy project if all of 2037

the following circumstances exist: 2038
(a) The application was timely submitted. 2039
(b) For an energy project with a nameplate capacity of 2040

five twenty megawatts or greater, a board of county 2041
commissioners of at least one county in which the project is 2042
located has adopted a resolution approving the application under 2043
division (E)(1)(b) or (c) of this section. 2044
(c) No portion of the project's facility was used to 2045

supply electricity before December 31, 2009. 2046
(3) The director shall deny a certification application if 2047

the director determines the person has failed to comply with any 2048
requirement under this section. The director may revoke a 2049
certification if the director determines the person, or 2050
subsequent owner or lessee pursuant to a sale and leaseback 2051
transaction of the qualified energy project, has failed to 2052
comply with any requirement under this section. Upon 2053
certification or revocation, the director shall notify the 2054
person, owner, or lessee, the tax commissioner, and the county 2055
auditor of a county in which the project is located of the 2056
certification or revocation. Notice shall be provided in a 2057
manner convenient to the director. 2058
l_133_1512-1
(F) The owner or a lessee pursuant to a sale and leaseback 2059

transaction of a qualified energy project shall do each of the 2060
following: 2061
(1) Comply with all applicable regulations; 2062
(2) File with the director of development services a 2063

certified construction progress report before the first day of 2064
March of each year during the energy facility's construction or 2065
installation indicating the percentage of the project completed, 2066
and the project's nameplate capacity, as of the preceding 2067
thirty-first day of December. Unless otherwise instructed by the 2068
director of development services, the owner or lessee of an 2069
energy project shall file a report with the director on or 2070
before the first day of March each year after completion of the 2071
energy facility's construction or installation indicating the 2072
project's nameplate capacity as of the preceding thirty-first 2073
day of December. Not later than sixty days after June 17, 2010, 2074
the owner or lessee of an energy project, the construction of 2075
which was completed before June 17, 2010, shall file a 2076
certificate indicating the project's nameplate capacity. 2077
(3) File with the director of development services, in a 2078

manner prescribed by the director, a report of the total number 2079
of full-time equivalent employees, and the total number of full- 2080
time equivalent employees domiciled in Ohio, who are employed in 2081
the construction or installation of the energy facility; 2082
(4) For energy projects with a nameplate capacity of five 2083

twenty megawatts or greater, repair all roads, bridges, and 2084
culverts affected by construction as reasonably required to 2085
restore them to their preconstruction condition, as determined 2086
by the county engineer in consultation with the local 2087
jurisdiction responsible for the roads, bridges, and culverts. 2088
l_133_1512-1
In the event that the county engineer deems any road, bridge, or 2089
culvert to be inadequate to support the construction or 2090
decommissioning of the energy facility, the road, bridge, or 2091
culvert shall be rebuilt or reinforced to the specifications 2092
established by the county engineer prior to the construction or 2093
decommissioning of the facility. The owner or lessee of the 2094
facility shall post a bond in an amount established by the 2095
county engineer and to be held by the board of county 2096
commissioners to ensure funding for repairs of roads, bridges, 2097
and culverts affected during the construction. The bond shall be 2098
released by the board not later than one year after the date the 2099
repairs are completed. The energy facility owner or lessee 2100
pursuant to a sale and leaseback transaction shall post a bond, 2101
as may be required by the Ohio power siting board in the 2102
certificate authorizing commencement of construction issued 2103
pursuant to section 4906.10 of the Revised Code, to ensure 2104
funding for repairs to roads, bridges, and culverts resulting 2105
from decommissioning of the facility. The energy facility owner 2106
or lessee and the county engineer may enter into an agreement 2107
regarding specific transportation plans, reinforcements, 2108
modifications, use and repair of roads, financial security to be 2109
provided, and any other relevant issue. 2110
(5) Provide or facilitate training for fire and emergency 2111

responders for response to emergency situations related to the 2112
energy project and, for energy projects with a nameplate 2113
capacity of five twenty megawatts or greater, at the person's 2114
expense, equip the fire and emergency responders with proper 2115
equipment as reasonably required to enable them to respond to 2116
such emergency situations; 2117
(6) Maintain a ratio of Ohio-domiciled full-time 2118

equivalent employees employed in the construction or 2119
l_133_1512-1
installation of the energy project to total full-time equivalent 2120

employees employed in the construction or installation of the 2121
energy project of not less than eighty per cent in the case of a 2122
solar energy project, and not less than fifty per cent in the 2123
case of any other energy project. In the case of an energy 2124
project for which certification from the power siting board is 2125
required under section 4906.20 of the Revised Code, the number 2126
of full-time equivalent employees employed in the construction 2127
or installation of the energy project equals the number actually 2128
employed or the number projected to be employed in the 2129
certificate application, if such projection is required under 2130
regulations adopted pursuant to section 4906.03 of the Revised 2131
Code, whichever is greater. For all other energy projects, the 2132
number of full-time equivalent employees employed in the 2133
construction or installation of the energy project equals the 2134
number actually employed or the number projected to be employed 2135
by the director of development services, whichever is greater. 2136
To estimate the number of employees to be employed in the 2137
construction or installation of an energy project, the director 2138
shall use a generally accepted job-estimating model in use for 2139
renewable energy projects, including but not limited to the job 2140
and economic development impact model. The director may adjust 2141
an estimate produced by a model to account for variables not 2142
accounted for by the model. 2143
(7) For energy projects with a nameplate capacity in 2144

excess of two twenty megawatts, establish a relationship with a 2145
member of the university system of Ohio as defined in section 2146
3345.011 of the Revised Code or with a person offering an 2147
apprenticeship program registered with the employment and 2148
training administration within the United States department of 2149
labor or with the apprenticeship council created by section 2150
l_133_1512-1
4139.02 of the Revised Code, to educate and train individuals 2151

for careers in the wind or solar energy industry. The 2152
relationship may include endowments, cooperative programs, 2153
internships, apprenticeships, research and development projects, 2154
and curriculum development. 2155
(8) Offer to sell power or renewable energy credits from 2156

the energy project to electric distribution utilities or 2157
electric service companies subject to renewable energy resource 2158
requirements under section 4928.64 of the Revised Code that have 2159
issued requests for proposal for such power or renewable energy 2160
credits. If no electric distribution utility or electric service 2161
company issues a request for proposal on or before December 31, 2162
2010, or accepts an offer for power or renewable energy credits 2163
within forty-five days after the offer is submitted, power or 2164
renewable energy credits from the energy project may be sold to 2165
other persons. Division (F)(8) of this section does not apply 2166
if: 2167
(a) The owner or lessee is a rural electric company or a 2168

municipal power agency as defined in section 3734.058 of the 2169
Revised Code. 2170
(b) The owner or lessee is a person that, before 2171

completion of the energy project, contracted for the sale of 2172
power or renewable energy credits with a rural electric company 2173
or a municipal power agency. 2174
(c) The owner or lessee contracts for the sale of power or 2175
renewable energy credits from the energy project before June 17, 2176
2010. 2177
(9) Make annual service payments as required by division 2178

(G) of this section and as may be required in a resolution 2179
l_133_1512-1
adopted by a board of county commissioners under division (E) of 2180

this section. 2181
(G) The owner or a lessee pursuant to a sale and leaseback 2182

transaction of a qualified energy project shall make annual 2183
service payments in lieu of taxes to the county treasurer on or 2184
before the final dates for payments of taxes on public utility 2185
personal property on the real and public utility personal 2186
property tax list for each tax year for which property of the 2187
energy project is exempt from taxation under this section. The 2188
county treasurer shall allocate the payment on the basis of the 2189
project's physical location. Upon receipt of a payment, or if 2190
timely payment has not been received, the county treasurer shall 2191
certify such receipt or non-receipt to the director of 2192
development services and tax commissioner in a form determined 2193
by the director and commissioner, respectively. Each payment 2194
shall be in the following amount: 2195
(1) In the case of a solar energy project, seven thousand 2196

dollars per megawatt of nameplate capacity located in the county 2197
as of December 31, 2010, for tax year 2011, as of December 31, 2198
2011, for tax year 2012, as of December 31, 2012, for tax year 2199
2013, as of December 31, 2013, for tax year 2014, as of December 2200
31, 2014, for tax year 2015, as of December 31, 2015, for tax 2201
year 2016, and as of December 31, 2016, for tax year 2017 and 2202
each tax year thereafter; 2203
(2) In the case of any other energy project using 2204

renewable energy resources, the following: 2205
(a) If the project maintains during the construction or 2206

installation of the energy facility a ratio of Ohio-domiciled 2207
full-time equivalent employees to total full-time equivalent 2208
employees of not less than seventy-five per cent, six thousand 2209
l_133_1512-1

as of the thirty-first day of December of the preceding tax 2211
year; 2212
(b) If the project maintains during the construction or 2213

employees of less than seventy-five per cent but not less than 2216
sixty per cent, seven thousand dollars per megawatt of nameplate 2217
capacity located in the county as of the thirty-first day of 2218
December of the preceding tax year; 2219
(c) If the project maintains during the construction or 2220

employees of less than sixty per cent but not less than fifty 2223
per cent, eight thousand dollars per megawatt of nameplate 2224
December of the preceding tax year. 2226
(3) In the case of an energy project using clean coal 2227

technology, advanced nuclear technology, or cogeneration 2228
technology, the following: 2229
(a) If the project maintains during the construction or 2230

employees of not less than seventy-five per cent, six thousand 2233
as of the thirty-first day of December of the preceding tax 2235
year; 2236
(b) If the project maintains during the construction or 2237

l_133_1512-1

employees of less than seventy-five per cent but not less than 2240
sixty per cent, seven thousand dollars per megawatt of nameplate 2241
December of the preceding tax year; 2243
(c) If the project maintains during the construction or 2244

employees of less than sixty per cent but not less than fifty 2247
per cent, eight thousand dollars per megawatt of nameplate 2248
December of the preceding tax year. 2250
(H) The director of development services in consultation 2251

with the tax commissioner shall adopt rules pursuant to Chapter 2252
119. of the Revised Code to implement and enforce this section. 2253
Section 2. That existing sections 303.213, 519.213, 2254

713.081, 4906.13, 4928.01, 4928.142, 4928.143, 4928.64, 2255
4928.644, 4928.66, 4928.662, 4928.6610, and 5727.75 of the 2256
Revised Code are hereby repealed. 2257
Section 3. That section 4928.6616 of the Revised Code is 2258

hereby repealed. 2259
Section 4. The amendment by this act of section 5727.75 of 2260

the Revised Code applies to both of the following: 2261
(A) Energy projects certified by the Director of 2262

Development Services on or after the effective date of this 2263
section; 2264
(B) Existing qualified energy projects that, on the 2265

effective date of this section, have a nameplate capacity of 2266
fewer than five megawatts. 2267

HB6 - Senate Substitute Bill

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l_133_1512-1

133rd General Assembly

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

Section 1. That sections 303.213, 519.213, 713.081, 15

3706.51, 3706.53, 3706.55, 3706.57, 3706.59, 3706.61, 3706.63, 19

Sec. 303.213. (A) As used in this section, "small wind 23

(B) Notwithstanding division (A) of section 303.211 of the 30

(C) The designation under this section of a small wind 40

(D) Nothing in division (C) of this section shall be 44

Sec. 519.213. (A) As used in this section, "small wind 49

(B) Notwithstanding division (A) of section 519.211 of the 56

(C) The designation under this section of a small wind 66

(D) Nothing in division (C) of this section shall be 71

Sec. 713.081. (A) As used in this section, "small wind 76

or capable of, operation at an aggregate capacity of less than 79

(B) Sections 713.06 to 713.15 of the Revised Code confer 83

(C) The designation under this section of a small wind 92

Sec. 3706.40. As used in sections 3706.40 to 3706.65 of 97

(A) "Qualifying nuclear resource" means an electric 99

(B) "Qualifying renewable energy resource" means a 101

(1) The resource is located in this state. 105

(2) The resource was constructed on or after the effective 106

Sec. 3706.41. (A) The owner or operator of a qualifying 108

(B) Upon receiving an application under division (A) of 113

(1) The resource meets the definition of a qualifying 119

(2) The resource's owner or operator maintains both a 121

Sec. 3706.45. (A)(1) The Ohio air quality development 125

(2) The authority shall decertify a qualifying nuclear 133

(a) That either requirement under division (B)(1) or (2) 135

(b) That the resource will be decommissioned before 137

(B) Before decertifying a qualifying nuclear resource, the 139

(1) Allow the resource to provide information in support 141

Sec. 3706.47. (A) There is hereby created the energy 144

(B) The treasurer of state shall distribute the moneys in 151

Sec. 3706.49. (A) Beginning January 1, 2020, and ending 155

(B) Except as provided in section 3706.491 of the Revised 162

(1) For customers classified by the utility as 164

residential, the monthly charge shall be eighty cents. 165

(2) For customers classified by the utility as commercial, 166

(3) For customers classified by the utility as industrial, 174

(4) For customers classified by the utility as commercial 182

(D) For purposes of division (B) of this section, the 190

Sec. 3706.491. (A) If the Ohio air quality development 194

(B) Any revisions made by the commission under this 207

(B) A certified qualifying nuclear resource shall earn a 216

a supplemental renewable energy credit payment for each 224

Sec. 3706.55. (A) As used in this section, "total amount 237

(B) Except as provided in section 3706.491 of the Revised 240

(1) To the owner or operator of a certified qualifying 247

(2) To the owners or operators of certified qualifying 263

(C) Notwithstanding section 4905.32 of the Revised Code, 278

authority in consultation with the public utilities commission. 283

Sec. 3706.57. (A) Except as provided in section 3706.491 284

(B) The amount for a supplemental renewable energy credit 288

Sec. 3706.59. (A) If the owner or operator of a certified 291

(B) Except as provided in division (B)(1)(b) of section 301

Sec. 3706.61. (A) In each year beginning in 2021 and 309

(B) Any owner or operator subject to an audit under 323

(C) The commission shall submit a report summarizing the 332

(D) The Ohio air quality development authority shall, in 340

audit in carrying out the authority's duties under section 342

(1) Tracking the information reported under section 352

(2) A system of registering nuclear resource credits by 355

Sec. 4905.311. In order to promote job growth and 371