As Passed by the Senate

125th General Assembly
Regular Session
2003-2004
Sub. H. B. No. 133


REPRESENTATIVES Olman, Driehaus, Strahorn, Carmichael, Distel, Hartnett, G. Smith, Niehaus, Schmidt, Barrett, Fessler, Harwood, Hollister, Hughes, Latta, McGregor, S. Patton, T. Patton, Price, Reidelbach, Seitz, J. Stewart

SENATOR Blessing



A BILL
To amend sections 4906.06, 4906.08, 4906.10, 4906.98, 1
4906.99, 4928.62, and 4928.63 and to enact section 2
4906.97 of the Revised Code to change filing and 3
notice timelines for applications filed with the 4
Power Siting Board; to modify approval standards 5
regarding a major electric generating facility; to 6
authorize the Board or its chairperson to order 7
the suspension of an activity during the Board's 8
consideration of a complaint about the activity; 9
to authorize the Board to impose a forfeiture for 10
a violation of power siting law; and to modify the 11
provision of financial assistance under the Energy 12
Efficiency Revolving Loan Program.13


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

       Section 1. That sections 4906.06, 4906.08, 4906.10, 4906.98, 14
4906.99, 4928.62, and 4928.63 be amended and section 4906.97 of 15
the Revised Code be enacted to read as follows:16

       Sec. 4906.06.  (A) An applicant for a certificate shall file 17
with the office of the chairmanchairperson of the power siting 18
board an application, in such form as the board prescribes, 19
containing the following information:20

       (1) A description of the location and of the major utility21
facility to be built thereon;22

       (2) A summary of any studies whichthat have been made by or23
for the applicant of the environmental impact of the facility;24

       (3) A statement explaining the need for the facility;25

       (4) A statement of the reasons why the proposed location is 26
best suited for the facility;27

       (5) A statement of how the facility fits into the applicant's 28
forecast contained in the report submitted under section 4935.04 29
of the Revised Code;30

       (6) Such other information as the applicant may consider31
relevant or as the board may by rule or order may require. Copies 32
of the studies referred to in division (A)(2) of this section 33
shall be filed with the office of the chairmanchairperson, if34
ordered, and shall be available for public inspection.35

       The application shall be filed not less than two years,36
except one year in the case of transmission lines, nor more than37
five years prior to the planned date of commencement of38
construction. SuchEither period may be waived by the board for39
unforeseen emergenciesgood cause shown.40

       (B) Each application shall be accompanied by proof of service 41
of a copy of such application on the chief executive officer of 42
each municipal corporation and county, and the head of each public 43
agency charged with the duty of protecting the environment or of 44
planning land use, in the area in which any portion of such 45
facility is to be located.46

       (C) Each applicant shall within sevenfifteen days after the 47
date of the filing of the application shall give public notice to 48
persons residing in the municipal corporations and counties 49
entitled to receive notice under division (B) of this section, by 50
the publication of a summary of the application in newspapers of 51
general circulation in such area. Proof of such publication shall 52
be filed with the office of the chairmanchairperson.53

       (D) Inadvertent failure of service on, or notice to, any of 54
the persons identified in divisions (B) and (C) of this section 55
may be cured pursuant to orders of the board designed to afford 56
them adequate notice to enable them to participate effectively in 57
the proceeding. In addition, the board may, after filing, may58
require the applicant to serve notice of the application or copies 59
thereof or both upon such other persons, and file proof thereof, 60
as the board considers appropriate.61

       (E) An application for an amendment of a certificate shall be 62
in such form and contain such information as the board prescribes. 63
Notice of such an application shall be given as required in 64
divisions (B) and (C) of this section.65

       (F) Each application for certificate or an amendment shall be 66
accompanied by the application fee prescribed by board rule. All 67
application fees, supplemental application fees, and other fees 68
collected by the board shall be deposited in the state treasury to 69
the credit of the power siting board fund, which is hereby 70
created. The chairmanchairperson shall administer and authorize71
expenditures from the fund for any of the purposes of this72
chapter. If the chairmanchairperson determines that moneys73
credited to the fund from an applicant's fee are not sufficient to 74
pay the board's expenses associated with its review of the 75
application, hethe chairperson shall request the approval of the 76
controlling board to assess a supplemental application fee upon an 77
applicant to pay anticipated additional expenses associated with 78
the board's review of the application or an amendment to an 79
application. If the chairmanchairperson finds that an application 80
fee exceeds the amount needed to pay the board's expenses for 81
review of the application, hethe chairperson shall cause a refund 82
of the excess amount to be issued to the applicant from the fund.83

       Sec. 4906.08.  (A) The parties to a certification proceeding 84
shall include:85

       (1) The applicant;86

       (2) Each person entitled to receive service of a copy of the 87
application under division (B) of section 4906.06 of the Revised 88
Code, if itthe person has filed with the power siting board a89
notice of intervention as a party, within thirty days after the90
date itthe person was served with a copy of the application;91

       (3) Any person residing in a municipal corporation or county 92
entitled to receive service of a copy of the application under 93
division (B) of section 4906.06 of the Revised Code; and any other 94
person, if such athe person has petitioned the board for leave to 95
intervene as a party within thirty days after the date of 96
publication of the notice required by division (C) of section97
4906.06 of the Revised Code, and if suchthat petition has been98
granted by the board for good cause shown.99

       (B) The board may, in extraordinary circumstances for good100
cause shown, may grant a petition, for leave to intervene as a 101
party to participate in subsequent phases of the proceeding, that 102
is filed by a person identified in division (A)(2) or (3) of this 103
section, but whothat failed to file a timely notice of 104
intervention or petition for leave to intervene, as the case may 105
be.106

       (C) The board shall accept written or oral testimony from any 107
person at the public hearing, but the right to call and examine 108
witnesses shall be reserved for parties. However, the board may 109
adopt rules to exclude repetitive, immaterial, or irrelevant 110
testimony.111

       Sec. 4906.10.  (A) The power siting board shall render a112
decision upon the record either granting or denying the113
application as filed, or granting it upon such terms, conditions,114
or modifications of the construction, operation, or maintenance of 115
the major utility facility as the board considers appropriate. 116
The certificate shall be conditioned upon the facility being in117
compliance with standards and rules adopted under sections118
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 6111. 119
of the Revised Code. The period of initial operation under a 120
certificate shall expire two years after the date on which 121
electric power is first generated by the facility. During the 122
period of initial operation, the facility shall be subject to the 123
enforcement and monitoring powers of the director of environmental 124
protection under Chapters 3704., 3734., and 6111. of the Revised 125
Code and to the emergency provisions under those chapters. If a 126
major utility facility constructed in accordance with the terms 127
and conditions of its certificate is unable to operate in128
compliance with all applicable requirements of state laws, rules,129
and standards pertaining to air pollution, the facility may apply130
to the director of environmental protection for a conditional131
operating permit under division (G) of section 3704.03 of the132
Revised Code and the rules adopted thereunder. The operation of a 133
major utility facility in compliance with a conditional operating 134
permit is not in violation of its certificate. After the 135
expiration of the period of initial operation of a major utility 136
facility, the facility shall be under the jurisdiction of the 137
environmental protection agency and shall comply with all laws, 138
rules, and standards pertaining to air pollution, water pollution, 139
and solid and hazardous waste disposal.140

       The board shall not grant a certificate for the construction, 141
operation, and maintenance of a major utility facility, either as 142
proposed or as modified by the board, unless it finds and 143
determines all of the following:144

       (1) The basis of the need for the facility. Inif the case of145
a major utility facility described in division (B)(1) of section146
4906.01 of the Revised Code to be constructed on or after the 147
effective date of this amendment, the board shall presume the need 148
for the facility as that need is stated in an application pursuant 149
to division (A)(3) of section 4906.06 of the Revised Code.is an 150
electric transmission line or gas or natural gas transmission 151
line;152

       (2) The nature of the probable environmental impact;153

       (3) That the facility represents the minimum adverse154
environmental impact, considering the state of available155
technology and the nature and economics of the various156
alternatives, and other pertinent considerations;157

       (4) In the case of an electric transmission line or 158
generating facility, that the facility is consistent with regional 159
plans for expansion of the electric power grid of the electric 160
systems serving this state and interconnected utility systems and 161
that the facility will serve the interests of electric system 162
economy and reliability;163

       (5) That the facility will comply with Chapters 3704., 3734., 164
and 6111. of the Revised Code and all rules and standards adopted 165
under those chapters and under sections 1501.33, 1501.34, and 166
4561.32 of the Revised Code. In determining whether the facility 167
will comply with all rules and standards adopted under section 168
4561.32 of the Revised Code, the board shall consult with the 169
office of aviation of the division of multi-modal planning and 170
programs of the department of transportation under section 171
4561.341 of the Revised Code.172

       (6) That the facility will serve the public interest,173
convenience, and necessity;174

       (7) In addition to the provisions contained in divisions175
(A)(1) to (6) of this section and rules adopted under those 176
divisions, what its impact will be on the viability as 177
agricultural land of any land in an existing agricultural district 178
established under Chapter 929. of the Revised Code that is located 179
within the site and alternative site of the proposed major utility 180
facility. Rules adopted to evaluate impact under division (A)(7) 181
of this section shall not require the compilation, creation, 182
submission, or production of any information, document, or other 183
data pertaining to land not located within the site and 184
alternative site.185

       (8) That the facility incorporates maximum feasible water186
conservation practices as determined by the board, considering187
available technology and the nature and economics of the various188
alternatives.189

       (B) If the board determines that the location of all or a190
part of the proposed facility should be modified, it may condition 191
its certificate upon that modification, provided that the 192
municipal corporations and counties, and persons residing therein, 193
affected by the modification shall have been given reasonable 194
notice thereof.195

       (C) A copy of the decision and any opinion issued therewith 196
shall be served upon each party.197

       Sec. 4906.97.  (A) Upon a finding by the power siting board 198
that there are reasonable grounds to believe that a person has 199
violated a provision of section 4906.98 of the Revised Code, the 200
board shall fix a time for hearing such complaint and shall notify 201
the person. The notice shall be served not less than fifteen days 202
before the date of hearing and shall state the matters that are 203
the subject of the complaint. Parties to the complaint are 204
entitled to be heard, to be represented by counsel, and to have 205
process to enforce the attendance of witnesses.206

       (B) The power siting board by order or its chairperson, with 207
written notice to the person and opportunity to respond, may 208
require that any activity that is the subject of a complaint under 209
division (A) of this section be suspended for the duration of the 210
board's consideration of the complaint. Upon a showing by the 211
party against which the complaint was filed that all matters have 212
been addressed satisfactorily, the chairperson shall terminate the 213
suspension.214

       (C) After notice and opportunity for hearing in accordance 215
with division (A) of this section and upon a finding by the board 216
that a person has violated a provision of section 4906.98 of the 217
Revised Code, the board by order may assess a forfeiture of not 218
more than five thousand dollars for each day of the violation, but 219
the aggregate of forfeitures for a related series of violations 220
shall not exceed one million dollars. In determining the amount of 221
any forfeiture, the board shall consider all of the following:222

       (1) The gravity of the violation;223

       (2) The person's history of prior violations;224

       (3) The person's good faith efforts to comply and undertake 225
corrective action;226

       (4) The person's ability to pay the forfeiture;227

       (5) The cost of the project;228

       (6) The effect of the forfeiture on the person's ability to 229
continue as an applicant;230

       (7) Such other matters as justice requires.231

        (D) The attorney general, upon written request of the board, 232
shall bring a civil action to recover any forfeiture assessed 233
under division (C) of this section but not paid, or to seek other 234
appropriate relief, including injunctive relief. The action shall 235
be brought in the court of common pleas of Franklin county. The 236
court shall give precedence to the action over all other cases.237

        (E) All forfeitures collected under division (C) or (D) of 238
this section shall be deposited into the state treasury to the 239
credit of the general revenue fund.240

       Sec. 4906.98. (A) No person shall willfully construct a major241
utility facility without first obtaining a certificate.242

       (B) No person shall willfully construct, operate, or maintain 243
a major utility facility other than in compliance with the 244
certificate hethe person has obtained.245

       (C) No person shall fail to comply with any order issued 246
pursuant to this chapter or with a suspension otherwise required 247
under division (B) of section 4906.97 of the Revised Code.248

       Sec. 4906.99.  Whoever willfully violates any provision of249
section 4906.98 of the Revised Code shallmay be fined not less 250
than one thousand dollars nor more than ten thousand dollars for251
each day of violation, or imprisoned for not more than one year, 252
or both.253

       Sec. 4928.62.  (A) Beginning on the starting date of 254
competitive retail electric service, there is hereby created the 255
energy efficiency revolving loan program, which shall be 256
administered by the director of development. Under the program, 257
the director may authorize the use of moneys in the energy 258
efficiency revolving loan fund for financial assistance for 259
projects in this state. To the extent feasible given approved 260
applications for assistance, the assistance shall be distributed 261
among the certified territories of electric distribution utilities262
and participating electric cooperatives, and among the service 263
areas of participating municipal electric utilities, in amounts 264
proportionate to the remittances of each utility and cooperative 265
under divisions (B)(1) and (3) of section 4928.61 of the Revised 266
Code. The assistance shallmay be made or provided through267
approved lending institutionsby the director of development in 268
the form of direct loans or grants, or through lending 269
institutions in the form of loan participation agreements at below 270
market rates, loan guarantees for such loans, andor linked 271
deposits for such loans. The total of all grants provided in any 272
one fiscal year shall not exceed ten per cent of the revenues paid 273
into the energy efficiency revolving loan fund during the previous 274
fiscal year.275

       The director shall not authorize financial assistance under 276
the program unless the director first determines all of the 277
following:278

       (1) The project will include an investment in products,279
technologies, or services, including energy efficiency for 280
low-income housing, for residential, small commercial and small281
industrial business, local government, educational institution, 282
nonprofit entity, or agricultural customers of an electric 283
distribution utility in this state or a participating municipal 284
electric utility or electric cooperative in this state.285

       (2) The project will improve energy efficiency in a 286
cost-efficient manner by using both the most appropriate national, 287
federal, or other standards for products as determined by the 288
director, and the best practices for use of technology, products, 289
or services in the context of the total facility or building.290

       (3) The project will benefit the economic and environmental291
welfare of the citizens of this state.292

       (4) The receipt of financial assistance is a major factor in 293
the applicant's decision to proceed with or invest in the project.294

       (B) In carrying out sections 4928.61 to 4928.63 of the 295
Revised Code, the director may do all of the following for the 296
purpose of the energy efficiency revolving loan program:297

       (1) Acquire in the name of the director any property of any 298
kind or character in accordance with this section, by purchase, 299
purchase at foreclosure, or exchange, on such terms and in such 300
manner as the director considers proper;301

       (2) Make and enter into all contracts and agreements 302
necessary or incidental to the performance of the director's 303
duties and the exercise of the director's powers under those 304
sections;305

       (3) Employ or enter into contracts with financial 306
consultants, marketing consultants, consulting engineers, 307
architects, managers, construction experts, attorneys, technical 308
monitors, energy evaluators, or other employees or agents as the 309
director considers necessary, and shall fix their compensation;310

       (4) Adopt rules prescribing the application procedures for311
financial assistance under the program; the terms and conditions 312
of any loans, grants, loan guaranteesparticipation agreements, 313
linked deposits, and contracts; criteria pertaining to the 314
eligibility of participating lending institutions; and any other 315
matters necessary for the implementation of the program;316

       (5) Do all things necessary and appropriate for the operation 317
of the program.318

       (C) Financial statements, financial data, and trade secrets319
submitted to or received by the director from an applicant or 320
recipient of financial assistance under sections 4928.61 to 321
4928.63 of the Revised Code, or any information taken from those322
statements, data, or trade secrets for any purpose, are not public323
records for the purpose of section 149.43 of the Revised Code.324

       Sec. 4928.63.  The director of development and the public 325
benefits advisory board have the powers and duties provided in 326
sections 4928.61 and 4928.62 of the Revised Code, in order to 327
promote the welfare of the people of this state, to stabilize the328
economy, to assist in the improvement and development within this 329
state of not-for-profit entity, industrial, commercial, 330
distribution, residential, and research buildings and activities 331
required for the people of this state, to improve the economic 332
welfare of the people of this state, and also to assist in the 333
improvement of air, water, or thermal pollution control facilities 334
and solid waste disposal facilities. It is hereby determined that 335
the accomplishment of those purposes is essential so that the 336
people of this state may maintain their present high standards in337
comparison with the people of other states and so that338
opportunities for improving the economic welfare of the people of339
this state, for improving the housing of residents of this state,340
and for favorable markets for the products of this state's natural341
resources, agriculture, and manufacturing shall be improved; and342
that it is necessary for this state to establish the program343
authorized pursuant to sections 4928.61 and 4928.62 of the Revised344
Code, to establish the energy efficiency revolving loan program 345
and program fund and the energy efficiency revolving loan program346
advisory board, and to vest the director and the board with the 347
powers and duties provided in sections 4928.61 and 4928.62 of the 348
Revised Code.349

       Section 2. That existing sections 4906.06, 4906.08, 4906.10, 350
4906.98, 4906.99, 4928.62, and 4928.63 of the Revised Code are 351
hereby repealed.352