As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 221

Senator Schuler (By Request) 

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A BILL

To amend sections 122.41, 122.451, 3706.01, 3706.02,

1

3706.03, 3706.04, 3706.041, 3706.05, 3706.06,

2

3706.07, 3706.08, 3706.09, 3706.10, 3706.11,

3

3706.12, 3706.13, 3706.14, 3706.15, 3706.16,

4

3706.17, 3706.18, 4905.31, 4905.40, 4928.02,

5

4928.05, 4928.14, and 4928.17 and to enact

6

sections 1551.41, 4928.111, 4928.141, 4928.142,

7

4928.64, 4928.68, and 4928.69 of the Revised Code

8

to revise state energy policy to address electric

9

service price regulation, new bonding authority

10

for advanced energy projects, advanced (including

11

renewable) energy portfolio standards, energy

12

efficiency standards, and greenhouse gas emission

13

reporting and carbon control planning

14

requirements.

15

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

Section 1. That sections 122.41, 122.451, 3706.01, 3706.02,	16
3706.03, 3706.04, 3706.041, 3706.05, 3706.06, 3706.07, 3706.08,	17
3706.09, 3706.10, 3706.11, 3706.12, 3706.13, 3706.14, 3706.15,	18
3706.16, 3706.17, 3706.18, 4905.31, 4905.40, 4928.02, 4928.05,	19
4928.14, and 4928.17 be amended and sections 1551.41, 4928.111,	20
4928.141, 4928.142, 4928.64, 4928.68, and 4928.69 of the Revised	21
Code be enacted to read as follows:	22

Sec. 122.41.  (A) The development financing advisory council	23
and the director of development are invested with the powers and	24
duties provided in Chapter 122. of the Revised Code, in order to	25
promote the welfare of the people of the state, to stabilize the	26
economy, to provide employment, to assist in the development	27
within the state of industrial, commercial, distribution, and	28
research activities required for the people of the state, and for	29
their gainful employment, or otherwise to create or preserve jobs	30
and employment opportunities, or improve the economic welfare of	31
the people of the state, and also to assist in the financing of	32
air, water, or thermal pollution control facilities, advanced	33
energy facilities, and solid waste disposal facilities by mortgage	34
insurance as provided in section 122.451 of the Revised Code. It	35
is hereby determined that the accomplishment of such purposes is	36
essential so that the people of the state may maintain their	37
present high standards in comparison with the people of other	38
states and so that opportunities for employment and for favorable	39
markets for the products of the state's natural resources,	40
agriculture, and manufacturing shall be improved and that it is	41
necessary for the state to establish the programs authorized	42
pursuant to Chapter 122. of the Revised Code, to establish the	43
development financing advisory council, and to invest it and the	44
director of development with the powers and duties provided in	45
Chapter 122. of the Revised Code. The powers granted to the	46
director of development by Chapter 165. of the Revised Code are	47
independent of and in addition and alternate to, and are not	48
limited or restricted by, Chapter 122. of the Revised Code.	49

(B) The development financing advisory council shall:

50

(1) Make recommendations to the director of development as to	51
applications for assistance pursuant to sections 122.39 to 122.62	52
or Chapter 166. of the Revised Code. The council may revise its	53
recommendations to reflect any changes in the proposed assistance	54
made by the director.	55

(2) Advise the director in the administration of sections	56
122.39 to 122.62 and Chapter 166. of the Revised Code;	57

(3) Adopt bylaws to govern the conduct of the council's	58
business.	59

Sec. 122.451.  Upon application of any person, partnership,	60
or corporation, or upon application of any community improvement	61
corporation organized as provided in section 1724.01 of the	62
Revised Code, the director of development, with controlling board	63
approval, may, pledging therefor moneys in the mortgage insurance	64
fund created by section 122.561 of the Revised Code, insure or	65
make advance commitments to insure not more than ninety per cent	66
of any mortgage payments required. Before insuring any such	67
mortgage payments the director shall determine that:	68

(A) The project, in accordance with Section 13 of Article	69
VIII, Ohio Constitution, will create or preserve jobs and	70
employment opportunities, or improve the economic welfare of the	71
people of the state, or be an air quality facility, advanced	72
energy facility, waste water facility, or solid waste facility, as	73
defined in section 3706.01, 6121.01, or 6123.01 of the Revised	74
Code.	75

(B) The principal obligation, including initial service	76
charges and appraisal, inspection, and other fees approved by the	77
director, does not exceed one hundred per cent of the cost of the	78
project.	79

(C) The mortgage has a satisfactory maturity date in no case	80
later than twenty-five years from the date of the insurance.	81

(D) The mortgagor is responsible and able to meet the	82
payments under the mortgage.	83

(E) The mortgage contains complete amortization provisions	84
satisfactory to the director requiring periodic payments by the	85
mortgagor which may include principal and interest payments, cost	86
of local property taxes and assessments, land lease rentals, if	87
any, and hazard insurance on the property and such mortgage	88
insurance premiums as are required under section 122.561 of the	89
Revised Code, all as the director from time to time prescribes or	90
approves.	91

(F) The mortgage is in such form and contains such terms and	92
provisions with respect to property insurance, repairs,	93
alterations, payment of taxes and assessments, default reserves,	94
delinquency charges, default remedies, anticipation of maturity,	95
additional and secondary liens, and other matters as the director	96
may prescribe.	97

The director may take assignments of insured mortgages and	98
other forms of security and may take title by foreclosure or	99
conveyance to any project when an insured mortgage loan thereon is	100
clearly in default and when in the opinion of the director such	101
acquisition is necessary to safeguard the mortgage insurance fund,	102
and may sell, or on a temporary basis lease or rent, such project.	103

Sec. 1551.41.  The department of natural resources, the	104
environmental protection agency, and the public utilities	105
commission jointly by rule shall develop an interim policy	106
framework for the supervision and regulation by those agencies of	107
pilot and demonstration carbon sequestration activities located	108
in or sequestration products produced in this state.	109

Sec. 3706.01.  As used in this chapter:

110

(A) "Governmental agency" means a department, division, or	111
other unit of state government, a municipal corporation, county,	112
township, and other political subdivision, or any other public	113
corporation or agency having the power to acquire, construct, or	114
operate air quality facilities, the United States or any agency	115
thereof, and any agency, commission, or authority established	116
pursuant to an interstate compact or agreement.	117

(B) "Person" means any individual, firm, partnership,	118
association, or corporation, or any combination thereof.	119

(C) "Air contaminant" means particulate matter, dust, fumes,	120
gas, mist, smoke, noise, vapor, heat, radioactivity, radiation, or	121
odorous substance, or any combination thereof.	122

(D) "Air pollution" means the presence in the ambient air of	123
one or more air contaminants in sufficient quantity and of such	124
characteristics and duration as to injure human health or welfare,	125
plant or animal life, or property, or that unreasonably interferes	126
with the comfortable enjoyment of life or property.	127

(E) "Ambient air" means that portion of the atmosphere	128
outside of buildings and other enclosures, stacks, or ducts that	129
surrounds human, plant, or animal life, or property.	130

(F) "Emission" means the release into the outdoor atmosphere	131
of an air contaminant.	132

(G) "Air quality facility" means any of the following:

133

(1) Any method,or any modification or replacement of	134
property, process, device, structure, or equipment that removes,	135
reduces, prevents, contains, alters, conveys, stores, disperses,	136
or disposes of air contaminants or substances containing air	137
contaminants, or that renders less noxious or reduces the	138
concentration of air contaminants in the ambient air, including,	139
without limitation, facilities and expenditures that qualify as	140
air pollution control facilities under section 103 (C)(4)(F) of	141
the Internal Revenue Code of 1954, as amended, and regulations	142
adopted thereunder;	143

(2) Motor vehicle inspection stations operated in accordance	144
with, and any equipment used for motor vehicle inspections	145
conducted under, section 3704.14 of the Revised Code and rules	146
adopted under it;	147

(3) Ethanol or other biofuel facilities, including any	148
equipment used at the ethanol or other biofuel facility for the	149
production of ethanol or other biofuels;	150

(4) Any property or portion thereof used for the collection,	151
storage, treatment, utilization, processing, or final disposal of	152
a by-product or solid waste resulting from any method, process,	153
device, structure, or equipment that removes, reduces, prevents,	154
contains, alters, conveys, stores, disperses, or disposes of air	155
contaminants, or that renders less noxious or reduces the	156
concentration of air contaminants in the ambient air;	157

(5) Any property, device, or equipment that promotes the	158
reduction of emissions of air contaminants into the ambient air	159
through improvements in the efficiency of energy utilization or	160
energy conservation;	161

(6) Any coal research and development project conducted under	162
Chapter 1555. of the Revised Code;	163

(7) As determined by the director of the Ohio coal	164
development office, any property or portion thereof that is used	165
for the collection, storage, treatment, utilization, processing,	166
or final disposal of a by-product resulting from a coal research	167
and development project as defined in section 1555.01 of the	168
Revised Code or from the use of clean coal technology, excluding	169
any property or portion thereof that is used primarily for other	170
subsequent commercial purposes;	171

(8) Any property or portion thereof that is part of the	172
FutureGen project of the United States department of energy or	173
related to the siting of the FutureGen project;	174

(9) Any property, device, or equipment that reduces emissions	175
of air contaminants into the ambient air through the generation of	176
electricity using sustainable resources;	177

(10) Any property, device, or equipment necessary for the	178
manufacture and production of equipment that qualifies as an air	179
quality facility.	180

"Air quality facility" further includes any property or	181
system to be used in whole or in part for any of the purposes in	182
divisions (G)(1) to (8)(10) of this section, whether another	183
purpose is also served, and any property or system incidental to	184
or that has to do with, or the end purpose of which is, any of the	185
foregoing. Air quality facilities that are defined in this	186
division for industry, commerce, distribution, or research,	187
including public utility companies, are hereby determined to be	188
those that qualify as facilities for the control of air pollution	189
and thermal pollution related to air under Section 13 of Article	190
VIII, Ohio Constitution.	191

(H) "Project," or "air quality project," or "advanced energy	192
project" means any air quality facility or advanced energy	193
facility, including undivided or other interests therein, acquired	194
or to be acquired or constructed or to be constructed by the Ohio	195
air quality development authority under this chapter, or acquired	196
or to be acquired or constructed or to be constructed by a	197
governmental agency or person with all or a part of the cost	198
thereof being paid from a loan or grant from the authority under	199
this chapter or otherwise paid from the proceeds of air quality	200
revenue bonds, including all buildings and facilities that the	201
authority determines necessary for the operation of the project,	202
together with all property, rights, easements, and interests that	203
may be required for the operation of the project.	204

(I) "Cost" as applied to an air quality project or advanced	205
energy project means the cost of acquisition and construction, the	206
cost of acquisition of all land, rights-of-way, property rights,	207
easements, franchise rights, and interests required for such	208
acquisition and construction, the cost of demolishing or removing	209
any buildings or structures on land so acquired, including the	210
cost of acquiring any lands to which such buildings or structures	211
may be moved, the cost of acquiring or constructing and equipping	212
a principal office and sub-offices of the authority, the cost of	213
diverting highways, interchange of highways, and access roads to	214
private property, including the cost of land or easements for such	215
access roads, the cost of public utility and common carrier	216
relocation or duplication, the cost of all machinery, furnishings,	217
and equipment, financing charges, interest prior to and during	218
construction and for no more than eighteen months after completion	219
of construction, engineering, expenses of research and development	220
with respect to air quality facilities, the cost of any commodity	221
contract, including fees and expenses related thereto, legal	222
expenses, plans, specifications, surveys, studies, estimates of	223
cost and revenues, working capital, other expenses necessary or	224
incident to determining the feasibility or practicability of	225
acquiring or constructing such project, administrative expense,	226
and such other expense as may be necessary or incident to the	227
acquisition or construction of the project, the financing of such	228
acquisition or construction, including the amount authorized in	229
the resolution of the authority providing for the issuance of air	230
quality revenue bonds to be paid into any special funds from the	231
proceeds of such bonds, and the financing of the placing of such	232
project in operation. Any obligation, cost, or expense incurred by	233
any governmental agency or person for surveys, borings,	234
preparation of plans and specifications, and other engineering	235
services, or any other cost described above, in connection with	236
the acquisition or construction of a project may be regarded as a	237
part of the cost of that project and may be reimbursed out of the	238
proceeds of air quality revenue bonds as authorized by this	239
chapter.	240

(J) "Owner" includes an individual, copartnership,	241
association, or corporation having any title or interest in any	242
property, rights, easements, or interests authorized to be	243
acquired by this chapter.	244

(K) "Revenues" means all rentals and other charges received	245
by the authority for the use or services of any air quality	246
project, any gift or grant received with respect to any air	247
quality project, any moneys received with respect to the lease,	248
sublease, sale, including installment sale or conditional sale, or	249
other disposition of an air quality project, moneys received in	250
repayment of and for interest on any loans made by the authority	251
to a person or governmental agency, whether from the United States	252
or any department, administration, or agency thereof, or	253
otherwise, proceeds of such bonds to the extent that use thereof	254
for payment of principal of, premium, if any, or interest on the	255
bonds is authorized by the authority, amounts received or	256
otherwise derived from a commodity contract or from the sale of	257
the related commodity under such a contract, proceeds from any	258
insurance, condemnation, or guaranty pertaining to a project or	259
property mortgaged to secure bonds or pertaining to the financing	260
of the project, and income and profit from the investment of the	261
proceeds of air quality revenue bonds or of any revenues.	262

(L) "Public roads" includes all public highways, roads, and	263
streets in the state, whether maintained by the state, county,	264
city, township, or other political subdivision.	265

(M) "Public utility facilities" includes tracks, pipes,	266
mains, conduits, cables, wires, towers, poles, and other equipment	267
and appliances of any public utility.	268

(N) "Construction," unless the context indicates a different	269
meaning or intent, includes reconstruction, enlargement,	270
improvement, or providing furnishings or equipment.	271

(O) "Air quality revenueRevenue bonds," unless the context	272
indicates a different meaning or intent, includes air quality	273
revenue notes, air quality revenue renewal notes, and air quality	274
revenue refunding bonds, except that notes issued in anticipation	275
of the issuance of bonds shall have a maximum maturity of five	276
years as provided in section 3706.05 of the Revised Code and	277
notes or renewal notes issued as the definitive obligation may be	278
issued maturing at such time or times with a maximum maturity of	279
forty years from the date of issuance of the original note.	280

(P) "Solid waste" means any garbage; refuse; sludge from a	281
waste water treatment plant, water supply treatment plant, or air	282
pollution control facility; and other discarded material,	283
including solid, liquid, semisolid, or contained gaseous material	284
resulting from industrial, commercial, mining, and agricultural	285
operations, and from community activities, but not including solid	286
or dissolved material in domestic sewage, or solid or dissolved	287
material in irrigation return flows or industrial discharges that	288
are point sources subject to permits under section 402 of the	289
"Federal Water Pollution Control Act Amendments of 1972," 86 Stat.	290
880, 33 U.S.C.A. 1342, as amended, or source, special nuclear, or	291
byproduct material as defined by the "Atomic Energy Act of 1954,"	292
68 Stat. 921, 42 U.S.C.A. 2011, as amended.	293

(Q) "Sludge" means any solid, semisolid, or liquid waste,	294
other than a recyclable by-product, generated from a municipal,	295
commercial, or industrial waste water treatment plant, water	296
supply plant, or air pollution control facility or any other such	297
wastes having similar characteristics and effects.	298

(R) "Ethanol or other biofuel facility" means a plant at	299
which ethanol or other biofuel is produced.	300

(S) "Ethanol" means fermentation ethyl alcohol derived from	301
agricultural products, including potatoes, cereal, grains, cheese	302
whey, and sugar beets; forest products; or other renewable or	303
biomass resources, including residue and waste generated from the	304
production, processing, and marketing of agricultural products,	305
forest products, and other renewable or biomass resources, that	306
meets all of the specifications in the American society for	307
testing and materials (ASTM) specification D 4806-88 and is	308
denatured as specified in Parts 20 and 21 of Title 27 of the Code	309
of Federal Regulations.	310

(T) "Biofuel" means any fuel that is made from cellulosic	311
biomass resources, including renewable organic matter, crop waste	312
residue, wood, aquatic plants and other crops, animal waste, solid	313
waste, or sludge, and that is used for the production of energy	314
for transportation or other purposes.	315

(U) "FutureGen project" means the buildings, equipment, and	316
real property and functionally related buildings, equipment, and	317
real property, including related research projects that support	318
the development and operation of the buildings, equipment, and	319
real property, designated by the United States department of	320
energy and the FutureGen industrial alliance, inc., as the	321
coal-fueled, zero-emissions power plant designed to prove the	322
technical and economic feasibility of producing electricity and	323
hydrogen from coal and nearly eliminating carbon dioxide emissions	324
through capture and permanent storage.	325

(V) "Commodity contract" means a contract or series of	326
contracts entered into in connection with the acquisition or	327
construction of air quality facilities or advanced energy	328
facilities for the purchase or sale of a commodity that is	329
eligible for prepayment with the proceeds of federally taxable or	330
tax exempt bonds under sections 103, 141, and 148 of the Internal	331
Revenue Code of 1986, as amended, and regulations adopted under	332
it.	333

(W) "Sustainable resources" includes, but is not limited to,	334
solar, wind, tidal or wave, biomass, biofuel, hydro, or	335
geothermal resources that are used in the generation of	336
electricity.	337

(X) "Advanced energy facility" means any method or any	338
modification or replacement of property, process, device,	339
structure, or equipment that meets any of the following:	340

(1) With regard to clean coal technology, consists of a	341
coal-based generating facility that has the capability of	342
controlling or preventing emissions of carbon dioxide by at least	343
eighty per cent compared to the carbon dioxide emissions that	344
would occur without the technology;	345

(2) With regard to advanced nuclear energy production,	346
consists of generation III technology as defined by the nuclear	347
regulatory commission, other later technology, or significant	348
improvements to existing facilities;	349

(3) With regard to fuel cells used in the generation of	350
electricity, consists of, but is not limited to, a proton exchange	351
membrane fuel cell, phosphoric acid fuel cell, molten carbonate	352
fuel cell, or solid fuel cell;	353

(4) With regard to cogeneration technology, consists of a	354
technology using a heat engine or power station to generate	355
electricity and useful heat simultaneously.	356

"Advanced energy facility" further includes any property or	357
system to be used in whole or in part for any of the purposes of	358
divisions (X)(1) to (4) of this section, whether another purpose	359
also is served, and any property or system incidental to or that	360
has to do with, or the end purpose of which is, any of the	361
foregoing.	362

Sec. 3706.02.  There is hereby created the Ohio air quality	363
development authority. Such authority is a body both corporate and	364
politic in this state, and the carrying out of its purposes and	365
the exercise by it of the powers conferred by Chapter 3706. of the	366
Revised Code shall be held to be, and are hereby determined to be,	367
essential governmental functions and public purposes of the state,	368
but the authority shall not be immune from liability by reason	369
thereof.	370

The authority shall consist of seven members as follows: five	371
members appointed by the governor, with the advice and consent of	372
the senate, no more than three of whom shall be members of the	373
same political party, and the director of environmental protection	374
and the director of health, who shall be members ex officio	375
without compensation. Each appointive member shall be a resident	376
of the state, and a qualified elector therein. The members of the	377
authority first appointed shall continue in office for terms	378
expiring on June 30, 1971, June 30, 1973, June 30, 1975, June 30,	379
1977, and June 30, 1978, respectively, the term of each member to	380
be designated by the governor. Appointed members' terms of office	381
shall be for eight years, commencing on the first day of July and	382
ending on the thirtieth day of June. Each appointed member shall	383
hold office from the date of his appointment until the end of the	384
term for which he was appointed. Any member appointed to fill a	385
vacancy occurring prior to the expiration of the term for which	386
histhe member's predecessor was appointed shall hold office for	387
the remainder of such term. Any appointed member shall continue in	388
office subsequent to the expiration date of histhe member's term	389
until histhe member's successor takes office, or until a period	390
of sixty days has elapsed, whichever occurs first. A member of the	391
authority is eligible for reappointment. Each appointed member of	392
the authority, before entering upon hisofficial duties, shall	393
take an oath as provided by Section 7 of Article XV, Ohio	394
Constitution. The governor may at any time remove any member of	395
the authority for misfeasance, nonfeasance, or malfeasance in	396
office. The authority shall elect one of its appointed members as	397
chairmanchairperson and another as vice-chairman	398
vice-chairperson, and shall appoint a secretary-treasurer who need	399
not be a member of the authority. Four members of the authority	400
shall constitute a quorum, and the affirmative vote of four	401
members shall be necessary for any action taken by vote of the	402
authority. No vacancy in the membership of the authority shall	403
impair the rights of a quorum by such vote to exercise all the	404
rights and perform all the duties of the authority.	405

Before the issuance of any air quality revenue bonds under	406
Chapter 3706. of the Revised Code, each appointed member of the	407
authority shall give a surety bond to the state in the penal sum	408
of twenty-five thousand dollars and the secretary-treasurer shall	409
give such a bond in the penal sum of fifty thousand dollars, each	410
such surety bond to be conditioned upon the faithful performance	411
of the duties of the office, to be executed by a surety company	412
authorized to transact business in this state, and to be approved	413
by the governor and filed in the office of the secretary of state.	414
Each appointed member of the authority shall receive an annual	415
salary of five thousand dollars, payable in monthly installments.	416
Each member shall be reimbursed for histhe actual expenses	417
necessarily incurred in the performance of hisofficial duties.	418
All expenses incurred in carrying out Chapter 3706. of the Revised	419
Code shall be payable solely from funds provided under Chapter	420
3706. of the Revised Code, appropriated for such purpose by the	421
general assembly, or provided by the controlling board. No	422
liability or obligation shall be incurred by the authority beyond	423
the extent to which moneys have been so provided or appropriated.	424

Sec. 3706.03. (A) It is hereby declared to be the public	425
policy of the state through the operations of the Ohio air	426
quality development authority under this chapter to contribute	427
toward one or more of the following: to provide for the	428
conservation of air as a natural resource of the state, and to	429
prevent or abate the pollution thereof, to provide for the	430
comfort, health, safety, and general welfare of all employees, as	431
well as all other inhabitants of the state, to assist in the	432
financing of air quality facilities and advanced energy	433
facilities for industry, commerce, distribution, and research,	434
including public utility companies, to create or preserve jobs	435
and employment opportunities or improve the economic welfare of	436
the people, or assist and cooperate with governmental agencies in	437
achieving such purposes. InAdditionally, advanced energy	438
facilities for industry, commerce, distribution, or research,	439
including public utility companies, are hereby deemed to qualify	440
as facilities for the control of air pollution and thermal	441
pollution related to air under Section 13, Article VIII, Ohio	442
Constitution.	443

(B) In furtherance of such public policy the Ohio air	444
quality development authority may initiate, acquire, construct,	445
maintain, repair, and operate air quality projects and advanced	446
energy projects or cause the same to be operated pursuant to a	447
lease, sublease, or agreement with any person or governmental	448
agency; may make loans and grants to governmental agencies for	449
the acquisition or construction of air quality facilities and	450
advanced energy facilities by such governmental agencies; may	451
make loans to persons for the acquisition or construction of air	452
quality facilities and advanced energy facilities by such persons;	453
may enter into commodity contracts with, or make loans for the	454
purpose of entering into commodity contracts to, any person,	455
governmental agency, or entity located within or without the	456
state in connection with the acquisition or construction of air	457
quality facilities and advanced energy facilities; and may issue	458
air quality revenue bonds of this state payable solely from	459
revenues, to pay the cost of such projects, including any related	460
commodity contracts. Any air quality project or advanced energy	461
project shall be determined by the authority to be not	462
inconsistent with any applicable air quality standards duly	463
established and then required to be met pursuant to the "Clean	464
Air Act," 84 Stat. 1679 (1970), 42 U.S.C.A. 1857, as amended. Any	465
resolution of the authority providing for acquiring or	466
constructing such projects or for making a loan or grant for such	467
projects shall include a finding by the authority that such	468
determination has been made. Determinations by resolution of the	469
authority that a project is an air quality facility or advanced	470
energy facility under this chapter and is consistent with the	471
purposes of section 13 of Article VIII, Ohio Constitution, and	472
this chapter, shall be conclusive as to the validity and	473
enforceability of the air quality revenue bonds issued to finance	474
such project and of the resolutions, trust agreements or	475
indentures, leases, subleases, sale agreements, loan agreements,	476
and other agreements made in connection therewith, all in	477
accordance with their terms.	478

Sec. 3706.04.  The Ohio air quality development authority	479
may:	480

(A) Adopt bylaws for the regulation of its affairs and the	481
conduct of its business;	482

(B) Adopt an official seal;

483

(C) Maintain a principal office and suboffices at such places	484
within the state as it designates;	485

(D) Sue and plead in its own name; be sued and impleaded in	486
its own name with respect to its contracts or torts of its	487
members, employees, or agents acting within the scope of their	488
employment, or to enforce its obligations and covenants made under	489
sections 3706.05, 3706.07, and 3706.12 of the Revised Code. Any	490
such actions against the authority shall be brought in the court	491
of common pleas of the county in which the principal office of the	492
authority is located, or in the court of common pleas of the	493
county in which the cause of action arose, provided such county is	494
located within this state, and all summonses, exceptions, and	495
notices of every kind shall be served on the authority by leaving	496
a copy thereof at the principal office with the person in charge	497
thereof or with the secretary-treasurer of the authority.	498

(E) Make loans and grants to governmental agencies for the	499
acquisition or construction of air quality projects or advanced	500
energy projects by any such governmental agency and adopt rules	501
and procedures for making such loans and grants;	502

(F) Acquire, construct, reconstruct, enlarge, improve,	503
furnish, equip, maintain, repair, operate, lease or rent to, or	504
contract for operation by, a person or governmental agency, air	505
quality projects or advanced energy projects, and establish rules	506
for the use of such projects;	507

(G) Make available the use or services of any air quality	508
project or advanced energy project to one or more persons, one or	509
more governmental agencies, or any combination thereof;	510

(H) Issue air quality revenue bonds and notes and air quality	511
revenue refunding bonds of the state, payable solely from revenues	512
as provided in section 3706.05 of the Revised Code, unless the	513
bonds be refunded by refunding bonds, for the purpose of paying	514
any part of the cost of one or more air quality projects or	515
advanced energy projects or parts thereof;	516

(I) Acquire by gift or purchase, hold, and dispose of real	517
and personal property in the exercise of the powers of the	518
authority and the performance of its duties under this chapter;	519

(J) Acquire, in the name of the state, by purchase or	520
otherwise, on such terms and in such manner as the authority finds	521
proper, or by the exercise of the right of condemnation in the	522
manner provided by section 3706.17 of the Revised Code, such	523
public or private lands, including public parks, playgrounds, or	524
reservations, or parts thereof or rights therein, rights-of-way,	525
property, rights, easements, and interests as it finds necessary	526
for carrying out this chapter, but excluding the acquisition by	527
the exercise of the right of condemnation of any air quality	528
facility or advanced energy facility owned by any person or	529
governmental agency; and compensation shall be paid for public or	530
private lands so taken;	531

(K) Make and enter into all contracts and agreements and	532
execute all instruments necessary or incidental to the performance	533
of its duties and the execution of its powers under this chapter.	534

(1) When the cost under any such contract or agreement, other	535
than compensation for personal services, involves an expenditure	536
of more than two thousand dollars, the authority shall make a	537
written contract with the lowest responsive and responsible	538
bidder, in accordance with section 9.312 of the Revised Code,	539
after advertisement for not less than two consecutive weeks in a	540
newspaper of general circulation in Franklin county, and in such	541
other publications as the authority determines, which notice shall	542
state the general character of the work and the general character	543
of the materials to be furnished, the place where plans and	544
specifications therefor may be examined, and the time and place of	545
receiving bids; provided, that a contract or lease for the	546
operation of an air quality project or advanced energy project	547
constructed and owned by the authority or an agreement for	548
cooperation in the acquisition or construction of an air quality	549
project or advanced energy project pursuant to section 3706.12 of	550
the Revised Code or any contract for the construction of an air	551
quality project or advanced energy project that is to be leased by	552
the authority to, and operated by, persons whothat are not	553
governmental agencies and the cost of such project is to be	554
amortized exclusively from rentals or other charges paid to the	555
authority by persons whothat are not governmental agencies is not	556
subject to the foregoing requirements and the authority may enter	557
into such contract, lease, or agreement pursuant to negotiation	558
and upon such terms and conditions and for such period as it finds	559
to be reasonable and proper in the circumstances and in the best	560
interests of proper operation or of efficient acquisition or	561
construction of such project.	562

(2) Each bid for a contract for the construction, demolition,	563
alteration, repair, or reconstruction of an improvement shall	564
contain the full name of every person interested in it and meet	565
the requirements of section 153.54 of the Revised Code.	566

(3) Each bid for a contract except as provided in division	567
(K)(2) of this section shall contain the full name of every person	568
interested in it and shall be accompanied by a sufficient bond or	569
certified check on a solvent bank that if the bid is accepted a	570
contract will be entered into and the performance thereof secured.	571

(4) The authority may reject any and all bids.

572

(5) A bond with good and sufficient surety, approved by the	573
authority, shall be required of every contractor awarded a	574
contract except as provided in division (K)(2) of this section, in	575
an amount equal to at least fifty per cent of the contract price,	576
conditioned upon the faithful performance of the contract.	577

(L) Employ managers, superintendents, and other employees and	578
retain or contract with consulting engineers, financial	579
consultants, accounting experts, architects, attorneys, and such	580
other consultants and independent contractors as are necessary in	581
its judgment to carry out this chapter, and fix the compensation	582
thereof. All expenses thereof shall be payable solely from the	583
proceeds of air quality revenue bonds or notes issued under this	584
chapter, from revenues, or from funds appropriated for such	585
purpose by the general assembly.	586

(M) Receive and accept from any federal agency, subject to	587
the approval of the governor, grants for or in aid of the	588
construction of any air quality project or advanced energy project	589
or for research and development with respect to air quality	590
facilities and advanced energy facilities, and receive and accept	591
aid or contributions from any source of money, property, labor, or	592
other things of value, to be held, used, and applied only for the	593
purposes for which such grants and contributions are made;	594

(N) Engage in research and development with respect to air	595
quality facilities and advanced energy facilities;	596

(O) Purchase fire and extended coverage and liability	597
insurance for any air quality project and advanced energy project	598
and for the principal office and suboffices of the authority,	599
insurance protecting the authority and its officers and employees	600
against liability for damage to property or injury to or death of	601
persons arising from its operations, and any other insurance the	602
authority may agree to provide under any resolution authorizing	603
its air quality revenue bonds or in any trust agreement securing	604
the same;	605

(P) Charge, alter, and collect rentals and other charges for	606
the use or services of any air quality project or advanced energy	607
project as provided in section 3706.13 of the Revised Code;	608

(Q) Provide coverage for its employees under Chapters 145.,	609
4123., and 4141. of the Revised Code;	610

(R) Develop, encourage, promote, support, and implement	611
programs to achieve best cost rates for state-owned buildings,	612
facilities, and operations, state-supported colleges and	613
universities, willing local governments, and willing school	614
districts through pooled purchases of electricity and the	615
financing of taxable or tax-exempt prepayment of commodities;	616

(S) Develop, encourage, promote, support, and implement	617
programs to achieve optimal cost financing for electric	618
generating facilities to be constructed on or after January 1,	619
2009;	620

(T) Develop, encourage, and provide incentives for	621
investments in energy efficiency;	622

(U) Develop, encourage, promote, and support implementation	623
in this state of sustainable resource energy installations;	624

(V) Lead, encourage, promote, and support siting, financing,	625
construction, and operation for early implementations of	626
next-generation base load generating systems, including clean coal	627
generating facilities with carbon capture or sequestration or	628
advanced nuclear power plants, and reduce the costs of associated	629
risks;	630

(W) Engage in and coordinate state-supported energy research	631
and development with respect to reliable, affordable, and	632
sustainable energy in this state;	633

(X) Develop, encourage, promote, support, and implement	634
programs to achieve optimal cost electricity available to key	635
industrial and energy-intensive sectors of the economy of this	636
state;	637

(Y) Do all acts necessary or proper to carry out the powers	638
expressly granted in this chapter.	639

Any instrument by which real property is acquired pursuant to	640
this section shall identify the agency of the state that has the	641
use and benefit of the real property as specified in section	642
5301.012 of the Revised Code.	643

Sec. 3706.041.  (A) With respect to projects, and the	644
financing thereof, for industry, commerce, distribution, or	645
research, including public utility companies, under agreements	646
whereby the person to whom the project is to be leased, subleased,	647
or sold, or to whom a loan is to be made for the project, is to	648
make payments sufficient to pay all of the principal of, premium,	649
if any, and interest on the air quality revenue bonds issued for	650
the project, or the counterparty under any related commodity	651
contract agrees to make payments sufficient in amount to pay all	652
of the principal of, premium, if any, and interest on the related	653
air quality revenue bonds, the Ohio air quality development	654
authority may, in addition to other powers under this chapter:	655

(1) Make loans for the acquisition or construction of the	656
project to such person upon such terms as the authority may	657
determine or authorize, including secured or unsecured loans, and,	658
in connection therewith, enter into loan agreements and other	659
agreements, including commodity contracts, accept notes and other	660
forms of obligation to evidence such indebtedness and mortgages,	661
liens, pledges, assignments, or other security interests to secure	662
such indebtedness, which may be prior or subordinate to or on a	663
parity with other indebtedness, obligations, mortgages, pledges,	664
assignments, other security interests, or liens or encumbrances,	665
and take such actions as may be considered by it appropriate to	666
protect such security and safeguard against losses, including,	667
without limitation thereto, foreclosure and the bidding upon and	668
purchase of property upon foreclosure or other sale.	669

(2) Sell such project under such terms as it may determine,	670
including, without limitation thereto, sale by conditional sale or	671
installment sale, under which title may pass prior to or after	672
completion of the project or payment or provisions for payment of	673
all principal of, premium, if any, and interest on such bonds, or	674
at any other time provided in such agreement pertaining to such	675
sale, and including sale under an option to purchase at a price	676
which may be a nominal amount or less than true value at the time	677
of purchase.	678

(3) Grant a mortgage, lien, or other encumbrance on, or	679
pledge or assignment of, or other security interest with respect	680
to, all or any part of the project, revenues, reserve funds, or	681
other funds established in connection with such bonds, or on, of,	682
or with respect to any lease, sublease, sale, conditional sale or	683
installment sale agreement, loan agreement, or other agreement	684
pertaining to the lease, sublease, sale, or other disposition of a	685
project or pertaining to a loan made for a project, or any	686
guaranty or insurance agreement made with respect thereto, or any	687
interest of the authority therein, or any other interest granted,	688
assigned, or released to secure payments of the principal of,	689
premium, if any, or interest on the bonds or to secure any other	690
payments to be made by the authority, which mortgage, lien,	691
encumbrance, pledge, assignment, or other security interest may be	692
prior or subordinate to or on a parity with any other mortgage,	693
assignment, other security interest, or lien or encumbrance.	694

(4) Provide that the interest on such bonds may be at a	695
variable rate or rates changing from time to time in accordance	696
with a base or formula as authorized by the authority.	697

(5) Contract for the acquisition or construction of such	698
project or any part thereof, including any related commodity	699
contracts, and for the leasing, subleasing, sale or other	700
disposition of such project in a manner determined by the	701
authority in its sole discretion, without necessity for	702
competitive bidding or performance bonds.	703

(B) Property comprising a project shall not be subject to	704
taxes or assessments and so long as the bonds or notes issued to	705
finance the costs of such project are outstanding, and the	706
transfer of title to or possession of such property to the person	707
to whom a loan or installment sale or conditional sale with	708
respect to such project is made shall not be subject to the taxes	709
levied pursuant to Chapters 5739. and 5741. of the Revised Code.	710

The authority shall certify the property comprising a project	711
which is exempt from taxes and assessments pursuant to this	712
section, and shall send, by certified mail, copies of such	713
certification to the owner of such exempt property, to the tax	714
commissioner, and to the county auditor of the county or counties	715
in which any such exempt property is located.	716

Each county auditor shall maintain a separate list of all	717
property exempt pursuant to this section and sections 6121.044 and	718
6123.041 of the Revised Code, in addition to the list of exempt	719
property required to be maintained pursuant to section 5713.07 of	720
the Revised Code.	721

(C) The authority, in the lease, sale or loan agreement with	722
respect to a project referred to in division (A) of this section,	723
shall make appropriate provision for adequate maintenance of the	724
project.	725

(D) With respect to the projects referred to in this section,	726
the authority granted by this section is cumulative and	727
supplementary to all other authority granted in this chapter. The	728
authority granted by this section does not alter or impair any	729
similar authority granted elsewhere in this chapter for or with	730
respect to other projects.	731

Sec. 3706.05.  The Ohio air quality development authority may	732
at any time issue revenue bonds and notes of the state in such	733
principal amount as, in the opinion of the authority, are	734
necessary for the purpose of paying any part of the cost of one or	735
more air quality projects or advanced energy projects or parts	736
thereof, including one or more payments pursuant to a commodity	737
contract entered into in connection with the acquisition or	738
construction of air quality facilities or advanced energy	739
facilities. The authority may at any time issue renewal notes,	740
issue bonds to pay such notes and whenever it deems refunding	741
expedient, refund any bonds by the issuance of air quality revenue	742
refunding bonds of the state, whether the bonds to be refunded	743
have or have not matured, and issue bonds partly to refund bonds	744
then outstanding, and partly for any other authorized purpose. The	745
refunding bonds shall be sold and the proceeds applied to the	746
purchase, redemption, or payment of the bonds to be refunded.	747
Except as may otherwise be expressly provided by the authority,	748
every issue of its bonds or notes shall be general obligations of	749
the authority payable out of the revenues of the authority that	750
are pledged for such payment, without preference or priority of	751
the first bonds issued, subject only to any agreements with the	752
holders of particular bonds or notes pledging any particular	753
revenues. Such pledge shall be valid and binding from the time the	754
pledge is made and the revenues so pledged and thereafter received	755
by the authority shall immediately be subject to the lien of such	756
pledge without any physical delivery thereof or further act, and	757
the lien of any such pledge is valid and binding as against all	758
parties having claims of any kind in tort, contract, or otherwise	759
against the authority, irrespective of whether such parties have	760
notice thereof. Neither the resolution nor any trust agreement by	761
which a pledge is created need be filed or recorded except in the	762
records of the authority.	763

Whether or not the bonds or notes are of such form and	764
character as to be negotiable instruments, the bonds or notes	765
shall have all the qualities and incidents of negotiable	766
instruments, subject only to the provisions of the bonds or notes	767
for registration.	768

The bonds and notes shall be authorized by resolution of the	769
authority, shall bear such date or dates, and shall mature at such	770
time or times, in the case of any such note or any renewals	771
thereof not exceeding five years from the date of issue of such	772
original note and in the case of any such bond not exceeding forty	773
years from the date of issue, as such resolution or resolutions	774
may provide. The bonds and notes shall bear interest at such rate	775
or rates, be in such denominations, be in such form, either coupon	776
or registered, carry such registration privileges, be payable in	777
such medium of payment, at such place or places, and be subject to	778
such terms of redemption as the authority may authorize. The bonds	779
and notes of the authority may be sold by the authority, at public	780
or private sale, at or at not less than such price or prices as	781
the authority determines. The bonds and notes shall be executed by	782
the chairperson and vice-chairperson of the authority, either or	783
both of whom may use a facsimile signature, the official seal of	784
the authority or a facsimile thereof shall be affixed thereto or	785
printed thereon and attested, manually or by facsimile signature,	786
by the secretary-treasurer of the authority, and any coupons	787
attached thereto shall bear the signature or facsimile signature	788
of the chairperson of the authority. In case any officer whose	789
signature, or a facsimile of whose signature, appears on any	790
bonds, notes or coupons ceases to be such officer before delivery	791
of bonds or notes, such signature or facsimile shall nevertheless	792
be sufficient for all purposes the same as if the officer had	793
remained in office until such delivery, and in case the seal of	794
the authority has been changed after a facsimile has been	795
imprinted on such bonds or notes, such facsimile seal will	796
continue to be sufficient for all purposes.	797

Any resolution or resolutions authorizing any bonds or notes	798
or any issue thereof may contain provisions, subject to such	799
agreements with bondholders or noteholders as may then exist,	800
which provisions shall be a part of the contract with the holders	801
thereof, as to: the pledging of all or any part of the revenues of	802
the authority to secure the payment of the bonds or notes or of	803
any issue thereof; the use and disposition of revenues of the	804
authority; a covenant to fix, alter, and collect rentals and other	805
charges so that pledged revenues will be sufficient to pay costs	806
of operation, maintenance, and repairs, pay principal of and	807
interest on bonds or notes secured by the pledge of such revenues,	808
and provide such reserves as may be required by the applicable	809
resolution or trust agreement; the setting aside of reserve funds,	810
sinking funds, or replacement and improvement funds and the	811
regulation and disposition thereof; the crediting of the proceeds	812
of the sale of bonds or notes to and among the funds referred to	813
or provided for in the resolution authorizing the issuance of the	814
bonds or notes; the use, lease, sale, or other disposition of any	815
air quality project or any other assets of the authority;	816
limitations on the purpose to which the proceeds of sale of bonds	817
or notes may be applied and the pledging of such proceeds to	818
secure the payment of the bonds or notes or of any issue thereof;	819
as to notes issued in anticipation of the issuance of bonds, the	820
agreement of the authority to do all things necessary for the	821
authorization, issuance, and sale of such bonds in such amounts as	822
may be necessary for the timely retirement of such notes;	823
limitations on the issuance of additional bonds or notes; the	824
terms upon which additional bonds or notes may be issued and	825
secured; the refunding of outstanding bonds or notes; the	826
procedure, if any, by which the terms of any contract with	827
bondholders or noteholders may be amended or abrogated, the amount	828
of bonds or notes the holders of which must consent thereto, and	829
the manner in which such consent may be given; limitations on the	830
amount of moneys to be expended by the authority for operating,	831
administrative, or other expenses of the authority; securing any	832
bonds or notes by a trust agreement in accordance with section	833
3706.07 of the Revised Code; any other matters, of like or	834
different character, that in any way affect the security or	835
protection of the bonds or notes.	836

Neither the members of the authority nor any person executing	837
the bonds or notes shall be liable personally on the bonds or	838
notes or be subject to any personal liability or accountability by	839
reason of the issuance thereof.	840

Sec. 3706.06.  The issuance of air quality revenue bonds and	841
notes or air quality revenue refunding bonds under Chapter 3706.	842
of the Revised Code need not comply with any other law applicable	843
to the issuance of bonds or notes.	844

Sec. 3706.07.  In the discretion of the Ohio air quality	845
development authority, any air quality revenue bonds or notes or	846
air quality revenue refunding bonds issued under Chapter 3706. of	847
the Revised Code, may be secured by a trust agreement between the	848
authority and a corporate trustee, which trustee may be any trust	849
company or bank having the powers of a trust company within or	850
without the state.	851

Any such trust agreement may pledge or assign revenues of the	852
authority to be received, but shall not convey or mortgage any air	853
quality project or any part thereof. Any such trust agreement or	854
any resolution providing for the issuance of such bonds or notes	855
may contain such provisions for protecting and enforcing the	856
rights and remedies of the bondholders or noteholders as are	857
reasonable and proper and not in violation of law, including	858
covenants setting forth the duties of the authority in relation to	859
the acquisition of property, the construction, improvement,	860
maintenance, repair, operation, and insurance of the air quality	861
project or projects in connection with which such bonds or notes	862
are authorized, the rentals or other charges to be imposed for the	863
use or services of any air quality project, the application of	864
revenues received or otherwise derived from a commodity contract	865
or from the sale of the related commodity under such contract, the	866
custody, safeguarding, and application of all moneys, and	867
provisions for the employment of consulting engineers in	868
connection with the construction or operation of such air quality	869
project or projects. Any bank or trust company incorporated under	870
the laws of this state that may act as depository of the proceeds	871
of bonds or notes or of revenues may furnish such indemnifying	872
bonds or may pledge such securities as are required by the	873
authority. Any such trust agreement may set forth the rights and	874
remedies of the bondholders and noteholders and of the trustee,	875
and may restrict the individual right of action by bondholders and	876
noteholders as is customary in trust agreements or trust	877
indentures securing similar bonds. Such trust agreement may	878
contain such other provisions as the authority determines	879
reasonable and proper for the security of the bondholders or	880
noteholders. All expenses incurred in carrying out the provisions	881
of any such trust agreement may be treated as a part of the cost	882
of the operation of the air quality project or projects. Any such	883
trust agreement or resolution authorizing the issuance of air	884
quality revenue bonds may provide the method whereby the general	885
administrative overhead expenses of the authority shall be	886
allocated among the several projects acquired or constructed by it	887
as a factor of the operation expense of each such project.	888

Sec. 3706.08.  Any holder of air quality revenue bonds issued	889
under Chapter 3706. of the Revised Code, or any of the coupons	890
appertaining thereto, and the trustee under any trust agreement,	891
except to the extent the rights given by such chapter may be	892
restricted by the applicable resolution or such trust agreement,	893
may by suit, action, mandamus, or other proceedings, protect and	894
enforce any rights under the laws of the state or granted under	895
such chapter, trust agreement, or the resolution authorizing the	896
issuance of such bonds, and may enforce and compel the performance	897
of all duties required by such chapter, or by the trust agreement	898
or resolution, to be performed by the Ohio air quality development	899
authority or any officer thereof, including the fixing, charging,	900
and collecting of rentals or other charges.	901

Sec. 3706.09. Air quality revenueRevenue bonds and notes	902
and air quality revenue refunding bonds issued under Chapter 3706.	903
of the Revised Code do not constitute a debt, or a pledge of the	904
faith and credit, of the state or any political subdivision	905
thereof, and the holders or owners thereof have no right to have	906
taxes levied by the general assembly or taxing authority of any	907
political subdivision of the state for the payment of the	908
principal thereof or interest thereon, but such bonds and notes	909
are payable solely from the revenues and funds pledged for their	910
payment as authorized by such chapter, unless the notes are issued	911
in anticipation of the issuance of bonds or the bonds are refunded	912
by refunding bonds issued under such chapter, which bonds or	913
refunding bonds shall be payable solely from revenues and funds	914
pledged for their payment as authorized by such sections. All such	915
bonds and notes shall contain on the face thereof a statement to	916
the effect that the bonds or notes, as to both principal and	917
interest, are not debts of the state or any political subdivision	918
thereof, but are payable solely from revenues and funds pledged	919
for their payment.	920

All expenses incurred in carrying out Chapter 3706. of the	921
Revised Code are payable solely from funds provided under such	922
chapter. Such chapter does not authorize the Ohio air quality	923
development authority to incur indebtedness or liability on behalf	924
of or payable by the state or any political subdivision thereof.	925

Sec. 3706.10.  All moneys, funds, properties, and assets	926
acquired by the Ohio air quality development authority under	927
Chapter 3706. of the Revised Code, whether as proceeds from the	928
sale of air quality revenue bonds or as revenues, or otherwise,	929
shall be held by it in trust for the purposes of carrying out its	930
powers and duties, shall be used and reused as provided in such	931
chapter, and shall at no time be part of other public funds. Such	932
funds, except as otherwise provided in any resolution authorizing	933
its air quality revenue bonds or in any trust agreement securing	934
the same, or except when invested pursuant to section 3706.11 of	935
the Revised Code, shall be kept in depositories selected by the	936
authority in the manner provided in Chapter 135. of the Revised	937
Code, and the deposits shall be secured as provided in Chapter	938
135. of the Revised Code. The resolution authorizing the issuance	939
of such bonds of any issue or the trust agreement securing such	940
bonds shall provide that any officer to whom, or any bank or trust	941
company to which, such moneys are paid shall act as trustee of	942
such moneys and hold and apply them for the purposes hereof,	943
subject to such conditions as such chapter and such resolutions or	944
trust agreement provide.	945

Sec. 3706.11.  Moneys in the funds of the Ohio air quality	946
development authority, except as otherwise provided in any	947
resolution authorizing the issuance of its air quality revenue	948
bonds or in any trust agreement securing the same, in excess of	949
current needs, may be invested in notes, bonds, or other	950
obligations of the United States of America or any agency or	951
instrumentality thereof, or in obligations of this state or any	952
political subdivision thereof. Income from all such investments of	953
moneys in any fund shall be credited to such funds as the	954
authority determines, subject to the provisions of any such	955
resolution or trust agreement and such investments may be sold at	956
such times as the authority determines.	957

Sec. 3706.12.  The Ohio air quality development authority may	958
charge, alter, and collect rentals or other charges for the use or	959
services of any air quality project or advanced energy project and	960
contract in the manner provided by this section with one or more	961
persons, one or more governmental agencies, or any combination	962
thereof, desiring the use or services of such project, and fix the	963
terms, conditions, rentals, or other charges for such use or	964
services. Such rentals or other charges shall not be subject to	965
supervision or regulation by any other authority, commission,	966
board, bureau, or agency of the state and such contract may	967
provide for acquisition by such person or governmental agency of	968
all or any part of such air quality project or advanced energy	969
project for such consideration payable over the period of the	970
contract or otherwise as the authority in its sole discretion	971
determines to be appropriate, but subject to the provisions of any	972
resolution authorizing the issuance of air quality revenue bonds	973
or notes or air quality revenue refunding bonds of the authority	974
or any trust agreement securing the same. Any governmental agency	975
that has power to construct, operate, and maintain air quality	976
facilities or advanced energy facilities may enter into a contract	977
or lease with the authority whereby the use or services of any air	978
quality project or advanced energy project of the authority will	979
be made available to such governmental agency and may pay for such	980
use or services such rentals or other charges as may be agreed to	981
by the authority and such governmental agency.	982

Any governmental agency or combination of governmental	983
agencies may cooperate with the authority in the acquisition or	984
construction of an air quality project or advanced energy project	985
and shall enter into such agreements with the authority as may be	986
necessary, with a view to effective cooperative action and	987
safeguarding of the respective interests of the parties thereto,	988
which agreements shall provide for such contributions by the	989
parties thereto in such proportion as may be agreed upon and such	990
other terms as may be mutually satisfactory to the parties	991
including without limitation the authorization of the construction	992
of the project by one of the parties acting as agent for all of	993
the parties and the ownership and control of the project by the	994
authority to the extent necessary or appropriate for purposes of	995
the issuance of air quality revenue bonds by the authority. Any	996
governmental agency may provide the funds for the payment of such	997
contribution as is required under such agreements by the levy of	998
taxes, assessments or rentals and other charges for the use of the	999
utility system of which the air quality project or advanced energy	1000
project is a part or to which it is connected, if otherwise	1001
authorized by the laws governing such governmental agency in the	1002
construction of the type of air quality project or advanced energy	1003
project provided for in the agreements, and may pay the proceeds	1004
from the collection of such taxes, assessments, utility rentals,	1005
or other charges to the authority pursuant to such agreements; or	1006
the governmental agency may issue bonds or notes, if authorized by	1007
such laws, in anticipation of the collection of such taxes,	1008
assessments, utility rentals, or other charges and may pay the	1009
proceeds of such bonds or notes to the authority pursuant to such	1010
agreements. In addition any governmental agency may provide the	1011
funds for the payment of such contribution by the appropriation of	1012
money or, if otherwise authorized by law, by the issuance of bonds	1013
or notes and may pay such appropriated money or the proceeds of	1014
such bonds or notes to the authority pursuant to such agreements.	1015
The agreement by the governmental agency to provide such	1016
contribution, whether from appropriated money or from the proceeds	1017
of such taxes, assessments, utility rentals, or other charges, or	1018
such bonds or notes, or any combination thereof, shall not be	1019
subject to Chapter 133. of the Revised Code or any regulations or	1020
limitations contained therein. The proceeds from the collection of	1021
such taxes or assessments, and any interest earned thereon, shall	1022
be paid into a special fund immediately upon the collection	1023
thereof by the governmental agency for the purpose of providing	1024
such contribution at the times required under such agreements.	1025

When the contribution of any governmental agency is to be	1026
made over a period of time from the proceeds of the collection of	1027
special assessments, the interest accrued and to accrue before the	1028
first installment of such assessments shall be collected which is	1029
payable by such governmental agency on such contribution under the	1030
terms and provisions of such agreements shall be treated as part	1031
of the cost of the improvement for which such assessments are	1032
levied, and that portion of such assessments as are collected in	1033
installments shall bear interest at the same rate as such	1034
governmental agency is obligated to pay on such contribution under	1035
the terms and provisions of such agreements and for the same	1036
period of time as the contribution is to be made under such	1037
agreements. If the assessment or any installment thereof is not	1038
paid when due, it shall bear interest until the payment thereof at	1039
the same rate as such contribution and the county auditor shall	1040
annually place on the tax list and duplicate the interest	1041
applicable to such assessment and the penalty and additional	1042
interest thereon as otherwise authorized by law.	1043

Any governmental agency, pursuant to a favorable vote of the	1044
electors in an election held before or after June 1, 1970, for the	1045
purpose of issuing bonds to provide funds to acquire, construct,	1046
or equip, or provide real estate and interests in real estate for,	1047
an air quality facility or advanced energy facility, whether or	1048
not such governmental agency, at the time of such election, had	1049
the authority to pay the proceeds from such bonds or notes issued	1050
in anticipation thereof to the authority as provided in this	1051
section, may issue such bonds or notes in anticipation of the	1052
issuance thereof and pay the proceeds thereof to the authority in	1053
accordance with its agreement with the authority; provided, that	1054
the legislative authority of the governmental agency find and	1055
determine that the air quality project or advanced energy project	1056
to be acquired or constructed by the authority in cooperation with	1057
such governmental agency will serve the same public purpose and	1058
meet substantially the same public need as the facility otherwise	1059
proposed to be acquired or constructed by the governmental agency	1060
with the proceeds of such bonds or notes.	1061

Sec. 3706.13.  Each air quality project or advanced energy	1062
project, when constructed and placed in operation, shall be	1063
maintained and kept in good condition and repair by the Ohio air	1064
quality development authority, or the authority shall cause the	1065
same to be maintained and kept in good condition and repair. Each	1066
such project shall be operated by such operating employees as the	1067
authority employs or pursuant to a contract or lease with a person	1068
or governmental agency. All public or private property damaged or	1069
destroyed in carrying out the powers granted by Chapter 3706. of	1070
the Revised Code, shall be restored or repaired and placed in its	1071
original condition, as nearly as practicable, or adequate	1072
compensation shall be paid therefor from funds provided under such	1073
chapter.	1074

On or before the twentieth day of April in each year, the	1075
authority shall make a report of its activities for the preceding	1076
calendar year to the governor and the general assembly. Each such	1077
report shall set forth a complete operating and financial	1078
statement covering the authority's operations during the year. The	1079
authority shall cause an audit of its books and accounts to be	1080
made at least once each year by certified public accountants and	1081
the cost thereof may be treated as a part of the cost of	1082
construction or of operations of its projects.	1083

Sec. 3706.14.  All air quality revenue bonds issued under	1084
this chapter are lawful investments of banks, societies for	1085
savings, savings and loan associations, deposit guarantee	1086
associations, trust companies, trustees, fiduciaries, insurance	1087
companies, including domestic for life and domestic not for life,	1088
trustees or other officers having charge of sinking and bond	1089
retirement or other special funds of political subdivisions and	1090
taxing districts of this state, the commissioners of the sinking	1091
fund of the state, the administrator of workers' compensation, the	1092
state teachers retirement system, the public employees retirement	1093
system, the school employees retirement system, and the Ohio	1094
police and fire pension fund, and are acceptable as security for	1095
the deposit of public moneys.	1096

Sec. 3706.15.  The exercise of the powers granted by Chapter	1097
3706. of the Revised Code, will be for the benefit of the people	1098
of the state, for the improvement of their health, safety,	1099
convenience, and welfare, and for the enhancement of their	1100
residential, agricultural, recreational, economic, commercial, and	1101
industrial opportunities and is a public purpose. As the operation	1102
and maintenance of air quality projects or advanced energy	1103
projects will constitute the performance of essential governmental	1104
functions, the Ohio air quality development authority shall not be	1105
required to pay any taxes or assessments upon any air qualitysuch	1106
project, or upon any property acquired or used by the authority	1107
under Chapter 3706. of the Revised Code, or upon the income	1108
therefrom, nor shall the transfer to or from the Ohio air quality	1109
development authority of title or possession of any air quality	1110
project or advanced energy project, part thereof, or item included	1111
or to be included in any such project, be subject to the taxes	1112
levied pursuant to Chapters 5739. and 5741. of the Revised Code,	1113
and the bonds and notes issued under this chapter, their transfer,	1114
and the income therefrom, including any profit made on the sale	1115
thereof, shall at all times be free from taxation within the	1116
state.	1117

Sec. 3706.16.  The Ohio air quality development authority may	1118
acquire by purchase, whenever it finds such purchase expedient,	1119
any land, property, rights, rights-of-way, franchises, easements,	1120
and other interests in lands as it finds to be necessary or	1121
convenient for the construction and operation of any air quality	1122
project or advanced energy project, upon such terms and at such	1123
price as it considers reasonable and are agreed upon between the	1124
authority and the owner thereof, and take title thereto in the	1125
name of the state.	1126

Any governmental agency, notwithstanding any contrary	1127
provision of law and without the necessity for an advertisement,	1128
auction, order of court, or other action or formality, other than	1129
the regular and formal action of such governmental agency	1130
concerned, may lease, lend, grant, or convey to the authority, at	1131
its request, upon such terms as the proper authorities of such	1132
governmental agency find reasonable and fair any real property or	1133
interests therein including improvements thereto or personal	1134
property which is necessary or convenient to effect the authorized	1135
purposes of the authority, including public roads and real or	1136
personal property already devoted to public use.	1137

Sec. 3706.17.  The Ohio air quality development authority may	1138
acquire by appropriation pursuant to division (J) of section	1139
3706.04 of the Revised Code any land, rights, rights-of-way,	1140
franchises, easements, or other property necessary or proper for	1141
the construction or the efficient operation of any air quality	1142
project or advanced energy project. In any proceedings for	1143
appropriation under this section, the procedure to be followed	1144
shall be in accordance with Chapter 163. of the Revised Code.	1145

This section does not empower the authority to take or	1146
disturb property or facilities belonging to and required for the	1147
proper and convenient operation of any public utility or any	1148
common carrier engaged in interstate commerce, unless provision is	1149
made for the restoration, relocation, or duplication of such	1150
property or facilities elsewhere at the sole cost of the	1151
authority.	1152

Sec. 3706.18.  When the Ohio air quality development	1153
authority finds it necessary to change the location of any portion	1154
of any public road, state highway, railroad, or public utility	1155
facility in connection with the construction of an air quality	1156
project or advanced energy project, it shall cause the same to be	1157
reconstructed at such location as the division of government	1158
having jurisdiction over such road, highway, railroad, or public	1159
utility facility finds most favorable. Such reconstruction shall	1160
be of substantially the same type and in as good condition as the	1161
original road, highway, railroad, or public utility facility. The	1162
cost of such reconstruction, relocation, or removal and any damage	1163
incurred in changing the location of any such road, highway,	1164
railroad, or public utility facility shall be paid by the	1165
authority as a part of the cost of such air qualitythe project.	1166

When the authority finds it necessary that any public highway	1167
or portion thereof be vacated by reason of the acquisition or	1168
construction of an air quality project or advanced energy project,	1169
the authority may request the director of transportation, in	1170
writing, to vacate such highway or portion thereof in accordance	1171
with section 5511.07 of the Revised Code if the highway or portion	1172
thereof to be vacated is on the state highway system, or, if the	1173
highway or portion thereof to be vacated is under the jurisdiction	1174
of the county commissioners, the authority shall request the	1175
director, in writing, to petition the board of county	1176
commissioners, in the manner provided in section 5553.041 of the	1177
Revised Code, to vacate such highway or portion thereof. The	1178
authority shall pay to the director or to the county, as a part	1179
of the cost of such air qualitythe project, any amounts required	1180
to be deposited with any court in connection with proceedings for	1181
the determination of compensation and damages and all amounts of	1182
compensation and damages finally determined to be payable as a	1183
result of such vacation.	1184

The authority may make reasonable regulations for the	1185
installation, construction, maintenance, repair, renewal,	1186
relocation, and removal of railroad or public utility facilities	1187
in, on, over, or under any air quality project or advanced energy	1188
project. Whenever the authority determines that it is necessary	1189
that any such facilities installed or constructed in, on, over, or	1190
under property of the authority pursuant to such regulations be	1191
relocated, the public utility owning or operating such facilities	1192
shall relocate or remove them in accordance with the order of the	1193
authority. The cost and expenses of such relocation or removal,	1194
including the cost of installing such facilities in a new	1195
location, and the cost of any lands, or any rights or interests in	1196
lands, and the cost of any other rights, acquired to accomplish	1197
such relocation or removal, may be paid by the authority as a part	1198
of the cost of such air qualitythe project. In case of any such	1199
relocation or removal of facilities, the railroad or public	1200
utility owning or operating them, its successors, or assigns may	1201
maintain and operate such facilities, with the necessary	1202
appurtenances, in the new location in, on, over, or under the	1203
property of the authority for as long a period and upon the same	1204
terms as it had the right to maintain and operate such facilities	1205
in their former location.	1206

Sec. 4905.31.  Except as provided in section 4933.29 of the	1207
Revised Code, Chapters 4901., 4903., 4905., 4907., 4909., 4921.,	1208
and 4923., and 4928. of the Revised Code do not prohibit a public	1209
utility from filing a schedule or entering into any reasonable	1210
arrangement with another public utility or with its customers,	1211
consumers, or employees providing for:	1212

(A) The division or distribution of its surplus profits;

1213

(B) A sliding scale of charges, including variations in rates	1214
based upon either of the following:	1215

(1) Stipulated variations in cost as provided in the schedule	1216
or arrangement;	1217

(2) Any emissions fee levied upon an electric light company	1218
under Substitute Senate Bill No. 359 of the 119th general assembly	1219
as provided in the schedule. The public utilities commission shall	1220
permit an electric light company to recover the emissions fee	1221
pursuant to such a variable rate schedule.	1222

(3) Any emissions fee levied upon an electric light company	1223
under division (C) or (D) of section 3745.11 of the Revised Code	1224
as provided in the schedule. The public utilities commission shall	1225
permit an electric light company to recover any such emission fee	1226
pursuant to such a variable rate schedule.	1227

(4) Any schedule of variable rates filed under division (B)	1228
of this section shall provide for the recovery of any such	1229
emissions fee by applying a uniform percentage increase to the	1230
base rate charged each customer of the electric light company for	1231
service during the period that the variable rate is in effect.	1232

(C) A minimum charge for service to be rendered unless such	1233
minimum charge is made or prohibited by the terms of the	1234
franchise, grant, or ordinance under which such public utility is	1235
operated;	1236

(D) A classification of service based upon the quantity used,	1237
the time when used, the purpose for which used, the duration of	1238
use, and any other reasonable consideration;	1239

(E) Any other financial device that may be practicable or	1240
advantageous to the parties interested. No such arrangement,	1241
sliding scale, minimum charge, classification, variable rate, or	1242
device is lawful unless it is filed with and approved by the	1243
commission.	1244

Every such public utility is required to conform its	1245
schedules of rates, tolls, and charges to such arrangement,	1246
sliding scale, classification, or other device, and where variable	1247
rates are provided for in any such schedule or arrangement, the	1248
cost data or factors upon which such rates are based and fixed	1249
shall be filed with the commission in such form and at such times	1250
as the commission directs. The commission shall review the cost	1251
data or factors upon which a variable rate schedule filed under	1252
division (B)(2) or (3) of this section is based and shall adjust	1253
the base rates of the electric light company or order the company	1254
to refund any charges that it has collected under the variable	1255
rate schedule that the commission finds to have resulted from	1256
errors or erroneous reporting. After recovery of all of the	1257
emissions fees upon which a variable rate authorized under	1258
division (B)(2) or (3) of this section is based, collection of the	1259
variable rate shall end and the variable rate schedule shall be	1260
terminated.	1261

Every such arrangement, sliding scale, minimum charge,	1262
classification, variable rate, or device shall be under the	1263
supervision and regulation of the commission, and is subject to	1264
change, alteration, or modification by the commission.	1265

Sec. 4905.40.  (A) A public utility or a railroad may, when	1266
authorized by order of the public utilities commission, issue	1267
stocks, bonds, notes, and other evidences of indebtedness, payable	1268
at periods of more than twelve months after their date of	1269
issuance, when necessary:	1270

(1) For the acquisition of property, the construction,	1271
completion, extension, renewal, or improvement of its facilities,	1272
or the improvement of its service; or	1273

(2) For reorganization or readjustment of its indebtedness	1274
and capitalization, for the discharge or lawful refunding of its	1275
obligation, or for the reimbursement of moneys actually expended	1276
for such purposes from income or from any other moneys in the	1277
treasury of the public utility or railroad not secured or obtained	1278
from the issue of stocks, bonds, notes, or other evidences of	1279
indebtedness of such public utility or railroad. No reimbursement	1280
of moneys expended for such purposes from income or other moneys	1281
in the treasury shall be authorized unless the applicant has kept	1282
its accounts and vouchers of such expenditures in such manner as	1283
to enable the commission to ascertain the amount and purposes of	1284
such expenditures.	1285

(B) Any public utility, subject to the jurisdiction of the	1286
commission, may, when authorized by the commission, issue shares	1287
of common capital stock to acquire or pay for shares of common	1288
capital stock of a public utility of this or an adjoining state	1289
whose property is so located as to permit the operation of the	1290
properties of such utilities as an integrated system if the	1291
applicant owns, or by this issue will acquire, not less than	1292
sixty-five per cent of the issued and outstanding common capital	1293
shares of the company whose shares are to be acquired, and if the	1294
consideration to be capitalized by the acquiring company does not	1295
exceed the par or stated value at which the shares so acquired	1296
were issued.	1297

(C) Any bonds, notes, or other evidences of indebtedness	1298
payable at periods of more than twelve months after their date may	1299
be issued as provided in sections 4905.40 to 4905.43 of the	1300
Revised Code, regardless of the amount of the capital stock of the	1301
public utility or railroad, subject to the approval of the	1302
commission of the excess of such bonds, notes, or other evidences	1303
of indebtedness above the amount of the capital stock of such	1304
public utility or railroad.	1305

(D) The commission shall authorize on the best terms	1306
obtainable such issues of stocks, bonds, and other evidences of	1307
indebtedness as are necessary to enable any public utility to	1308
comply with any contract made between such public utility and any	1309
municipal corporation prior to June 30, 1911.	1310

(E) The commission may authorize a public utility that is an	1311
electric light company to issue equity securities, or debt	1312
securities having a term of more than twelve months from the date	1313
of issuance, for the purpose of yielding to the company the	1314
capacity to acquire a facility that produces fuel for the	1315
generation of electricity.	1316

(F) In any proceeding under division (A)(1) of this section	1317
initiated by a public utility, the commission shall determine and	1318
set forth in its order:	1319

(1) Whether the purpose to which the issue or any proceeds of	1320
it shall be applied was or is reasonably required by the utility	1321
to meet its present and prospective obligations to provide utility	1322
service;	1323

(2) Whether the amount of the issue and the probable cost of	1324
such stocks, bonds, notes, or other evidences of indebtedness is	1325
just and reasonable;	1326

(3) What effect, if any, the issuance of such stocks, bonds,	1327
notes, or other evidences of indebtedness and the cost thereof	1328
will have upon the present and prospective revenue requirements of	1329
the utility.	1330

(G) Sections 4905.40 to 4905.42 of the Revised Code do not	1331
apply to stocks, bonds, notes, or other evidence of indebtedness	1332
issued for the purpose of financing oil or natural gas drilling,	1333
producing, gathering, and associated activities and facilities by	1334
a producer which supplies to no more than twenty purchasers only	1335
such gas as is produced, gathered, or purchased by such producer	1336
within this state.	1337

(H) Each public utility seeking authorization from the	1338
commission for the issuance of securities to finance the	1339
installation, construction, extension, or improvement of an air	1340
quality facility or advanced energy facility, as defined in	1341
section 3706.01 of the Revised Code, shall consider the	1342
availability of financing therefor from the Ohio air quality	1343
development authority and shall demonstrate to the commission that	1344
the proposed financing will be obtained on the best terms	1345
obtainable.	1346

Sec. 4928.02.  It is the policy of this state to do the	1347
following throughout this state beginning on the starting date of	1348
competitive retail electric service:	1349

(A) Ensure the availability to consumers of adequate,	1350
reliable, safe, efficient, nondiscriminatory, and reasonably	1351
priced retail electric service;	1352

(B) Ensure the availability of unbundled and comparable	1353
retail electric service that provides consumers with the supplier,	1354
price, terms, conditions, and quality options they elect to meet	1355
their respective needs;	1356

(C) Ensure diversity of electricity supplies and suppliers,	1357
by giving consumers effective choices over the selection of those	1358
supplies and suppliers and by encouraging the development of	1359
distributed and small generation facilities;	1360

(D) Encourage innovation and market access for cost-effective	1361
supply- and demand-side retail electric service including, but not	1362
limited to, demand-side management, time-differentiated pricing,	1363
and implementation of advanced metering infrastructure;	1364

(E) Encourage cost-effective and efficient access to	1365
information regarding the operation of the transmission and	1366
distribution systems of electric utilities in order to promote	1367
both effective customer choice of retail electric service and the	1368
development of performance standards and targets for service	1369
quality for all consumers, including annual achievement reports	1370
written in plain language;	1371

(F) Recognize the continuing emergence of competitive	1372
electricity markets through the development and implementation of	1373
flexible regulatory treatment;	1374

(G) Ensure effective competition in the provision of retail	1375
electric service by avoiding anticompetitive subsidies flowing	1376
from a noncompetitive retail electric service to a competitive	1377
retail electric service or to a product or service other than	1378
retail electric service, and vice versa;	1379

(H) Ensure retail electric service consumers just and	1380
reasonable rates and protection against unreasonable sales	1381
practices, market deficiencies, and market power;	1382

(I) Preclude imbalances in knowledge and expertise among	1383
parties in a proceeding under this chapter to eliminate any	1384
appearance of disproportionate influence by any of those parties;	1385

(J) Ensure that consumers and shareholders share the benefits	1386
of, as well as the responsibility for, electric utility investment	1387
in facilities supplying retail electric generation service;	1388

(K) Provide coherent, transparent means of giving appropriate	1389
incentives to technologies that can adapt successfully to	1390
potential environmental mandates;	1391

(L) Protect at-risk populations when considering the	1392
implementation of any new advanced energy technology;	1393

(M) Encourage implementation of distributed generation across	1394
customer classes through regular review and updating of rules	1395
governing critical issues such as, but not limited to,	1396
interconnection standards, standby charges, and net metering;	1397

(N) Facilitate the state's effectiveness in the global	1398
economy.	1399

Sec. 4928.05.  (A)(1)(a) On and after the starting date of	1400
competitive retail electric service, a competitive retail electric	1401
service supplied by an electric utility or electric services	1402
company shall not be subject to supervision and regulation by a	1403
municipal corporation under Chapter 743. of the Revised Code or by	1404
the public utilities commission under Chapters 4901. to 4909.,	1405
4933., 4935., and 4963. of the Revised Code, except section	1406
sections 4905.10 and 4905.31, division (B) of section 4905.33, and	1407
sections 4905.35 and 4933.81 to 4933.90; except sections 4905.06,	1408
4935.03, 4963.40, and 4963.41 of the Revised Code only to the	1409
extent related to service reliability and public safety; and	1410
except as otherwise provided in this chapter. The commission's	1411
authority to enforce those excepted provisions with respect to a	1412
competitive retail electric service shall be such authority as is	1413
provided for their enforcement under Chapters 4901. to 4909.,	1414
4933., 4935., and 4963. of the Revised Code and this chapter.	1415

(b) Notwithstanding division (A)(1)(a) of this section, the	1416
commission may so supervise and regulate competitive retail	1417
electric service provided to consumers by an electric utility in	1418
this state if the commission determines the supervision and	1419
regulation is necessary to implement the state policy specified in	1420
section 4928.02 of the Revised Code.	1421

(c) On and after the starting date of competitive retail	1422
electric service, a competitive retail electric service supplied	1423
by an electric cooperative shall not be subject to supervision and	1424
regulation by the commission under Chapters 4901. to 4909., 4933.,	1425
4935., and 4963. of the Revised Code, except as otherwise	1426
expressly provided in sections 4928.01 to 4928.10 and 4928.16 of	1427
the Revised Code.	1428

(2) On and after the starting date of competitive retail	1429
electric service, a noncompetitive retail electric service	1430
supplied by an electric utility shall be subject to supervision	1431
and regulation by the commission under Chapters 4901. to 4909.,	1432
4933., 4935., and 4963. of the Revised Code and this chapter, to	1433
the extent that authority is not preempted by federal law. The	1434
commission's authority to enforce those provisions with respect to	1435
a noncompetitive retail electric service shall be the authority	1436
provided under those chapters and this chapter, to the extent the	1437
authority is not preempted by federal law.	1438

The commission shall exercise its jurisdiction with respect	1439
to the delivery of electricity by an electric utility in this	1440
state on or after the starting date of competitive retail electric	1441
service so as to ensure that no aspect of the delivery of	1442
electricity by the utility to consumers in this state that	1443
consists of a noncompetitive retail electric service is	1444
unregulated.	1445

On and after that starting date, a noncompetitive retail	1446
electric service supplied by an electric cooperative shall not be	1447
subject to supervision and regulation by the commission under	1448
Chapters 4901. to 4909., 4933., 4935., and 4963. of the Revised	1449
Code, except sections 4933.81 to 4933.90 and 4935.03 of the	1450
Revised Code. The commission's authority to enforce those excepted	1451
sections with respect to a noncompetitive retail electric service	1452
of an electric cooperative shall be such authority as is provided	1453
for their enforcement under Chapters 4933. and 4935. of the	1454
Revised Code.	1455

(B) Nothing in this chapter affects the authority of the	1456
commission under Title XLIX of the Revised Code to regulate an	1457
electric light company in this state or an electric service	1458
supplied in this state prior to the starting date of competitive	1459
retail electric service.	1460

Sec. 4928.111.  An electric distribution utility for which a	1461
standard service offer consisting of an electric security plan	1462
under section 4928.14 of the Revised Code has been approved by the	1463
commission shall file with the commission a long-term energy	1464
delivery infrastructure modernization plan or any plan providing	1465
for the utility's recovery of costs and a just and reasonable rate	1466
of return on such infrastructure modernization. A plan shall	1467
specify the initiatives the utility shall take to improve electric	1468
service reliability by rebuilding, upgrading, or replacing utility	1469
infrastructure and generating facilities. The plan shall be filed	1470
under an application under section 4909.18 of the Revised Code.	1471

Sec. 4928.14.  (A) After its market development period, anAn	1472
electric distribution utility in this state shall provide	1473
consumers, on a comparable and nondiscriminatory basis within its	1474
certified territory, a market-based standard service offer of all	1475
competitive retail electric services necessary to maintain	1476
essential electric service to consumers, including a firm supply	1477
of electric generation service. Such offer shall be filed with the	1478
public utilities commission under section 4909.18 of the Revised	1479
Code.	1480

(B) After that market development period, each electric	1481
distribution utility also shall offer customers within its	1482
certified territory an option to purchase competitive retail	1483
electric service the price of which is determined through a	1484
competitive bidding process. Prior to January 1, 2004, the	1485
commission shall adopt rules concerning the conduct of the	1486
competitive bidding process, including the information	1487
requirements necessary for customers to choose this option and the	1488
requirements to evaluate qualified bidders. The commission may	1489
require that the competitive bidding process be reviewed by an	1490
independent third party. No generation supplier shall be	1491
prohibited from participating in the bidding process, provided	1492
that any winning bidder shall be considered a certified supplier	1493
for purposes of obligations to customers. At the election of the	1494
electric distribution utility, and approval of the commission, the	1495
competitive bidding option under this division may be used as the	1496
market-based standard offer required by division (A) of this	1497
section. The commission may determine at any time that a	1498
competitive bidding process is not required, if other means to	1499
accomplish generally the same option for customers is readily	1500
available in the market and a reasonable means for customer	1501
participation is developed.	1502

(C) After the market development period, theThe offer is	1503
subject to approval or modification and approval by the public	1504
utilities commission, following an application that shall be	1505
filed with the commission, initially not later than six months	1506
after the effective date of the amendment of this section by	1507
of the 127th general assembly. The application shall be subject	1508
to such filing and procedural requirements as the commission	1509
shall prescribe by rule or order. The rules may include	1510
transition rules necessary for the initial implementation of	1511
this section as so amended.	1512

(B) The standard service offer shall provide for either of	1513
the following:	1514

(1) An offer, known as an electric security plan, which shall	1515
include the basis of the valuation of the specific generating	1516
facilities to be used in providing retail electric generation	1517
service and the basis of the cost of rendering generation service	1518
using those facilities, as those bases shall be defined by the	1519
commission by rule or order. Valuation of facilities under the	1520
rule or order shall factor in the extent to which the utility	1521
received transition revenues under section 4928.40 of the	1522
Revised Code and the extent to which the facilities have been	1523
depreciated over time. Further, prices under the plan may	1524
include amounts for specified costs, including, but not limited	1525
to, either or both of the following:	1526

(a) Environmental compliance costs associated with those	1527
facilities as determined by the commission;	1528

(b) Costs incurred by the utility on or after January 1,	1529
2009, in the construction of any generating facility that is	1530
located in this state and that, notwithstanding Chapter 4906. of	1531
the Revised Code to the contrary, the commission determines and	1532
certificates the need for on the basis of resource planning	1533
projections developed in accordance with policies and procedures	1534
the commission shall prescribe by rule.	1535

(2) An offer, known as a market rate option, under which the	1536
utility's standard service offer prices periodically are	1537
determined through an open, competitive bidding process.	1538

(C)(1) Nothing in this section precludes a utility for which	1539
an application under division (B)(1) of this section has been	1540
approved by the commission from later filing an application under	1541
division (B)(2) of this section, or vice versa.	1542

(2) If the commission disapproves a standard service offer	1543
filed in an initial application under division (B)(2) of this	1544
section, the utility shall then immediately file an application	1545
under division (B)(1) of this section.	1546

(D)(1) Subject to division (D)(2) of this section, the	1547
commission by order may approve or modify and approve the	1548
standard service offer contained in any application if it finds	1549
both of the following:	1550

(a) The offer and the prices it establishes are just and	1551
reasonable and in furtherance of the state policy specified in	1552
section 4928.02 of the Revised Code.	1553

(b) The utility is in compliance with section 4928.141 of the	1554
Revised Code.	1555

In its order, the commission shall prescribe any requirements	1556
for the utility as it considers necessary to implement the state	1557
policy and shall provide the term of the offer and a schedule and	1558
the procedural and substantive terms and conditions for periodic	1559
commission review of the approved offer. In the case of an offer	1560
consisting of a market rate option under division (B)(2) of this	1561
section, such review shall provide for reconciliation of the	1562
standard service offer prices to ensure that they are just and	1563
reasonable and in furtherance of the state policy specified in	1564
section 4928.02 of the Revised Code.	1565

(2) Regarding a standard service offer consisting of a market	1566
rate option under division (B)(2) of this section, the commission	1567
shall not approve the offer unless the utility additionally	1568
demonstrates all of the following:	1569

(a) The relevant markets are subject to effective	1570
competition. For that purpose the commission shall consider the	1571
factors prescribed in division (D) of section 4928.06 of the	1572
Revised Code.	1573

(b) The utility does not impose unreasonable or	1574
discriminatory costs or undue burdens on generation service	1575
competition within its generation service territory.	1576

(c) The offer will not impose undue price increases on	1577
consumers.	1578

(d) The offer is reasonable on both a short- and long-term	1579
basis.	1580

(e) Power purchases supporting the offer are prudent and	1581
reasonable.	1582

(3) Regarding any standard service offer consisting of an	1583
electric security plan in an application filed by an utility that	1584
transferred all or part of its generation facilities to an	1585
affiliate of the utility and to the extent authorized by federal	1586
law, the commission also may consider power supply or generation	1587
service contracts or agreements between the utility and any of	1588
its affiliates or between the utility and the holding company	1589
owning or controlling the utility.	1590

(E) A utility's initial standard service offer approved under	1591
this section as amended by      of the 127th general assembly	1592
shall take effect on the date the commission shall specify in that	1593
order and, on that date, shall supersede any prior authority	1594
granted by any law of this state under which the utility provided	1595
services described in division (A) of this section to consumers.	1596
Nothing in this section precludes commission approval under this	1597
section of a standard service offer similar to that in effect	1598
under such prior authority.	1599

(F) The failure of a supplier to provide retail electric	1600
generation service to customers within the certified territory of	1601
the electric distribution utility shall result in the supplier's	1602
customers, after reasonable notice, defaulting to the utility's	1603
standard service offer filed under division (A) of this section	1604
until the customer chooses an alternative supplier. A supplier is	1605
deemed under this division to have failed to provide such service	1606
if the commission finds, after reasonable notice and opportunity	1607
for hearing, that any of the following conditions are met:	1608

(1) The supplier has defaulted on its contracts with	1609
customers, is in receivership, or has filed for bankruptcy.	1610

(2) The supplier is no longer capable of providing the	1611
service.	1612

(3) The supplier is unable to provide delivery to	1613
transmission or distribution facilities for such period of time as	1614
may be reasonably specified by commission rule adopted under	1615
division (A) of section 4928.06 of the Revised Code.	1616

(4) The supplier's certification has been suspended,	1617
conditionally rescinded, or rescinded under division (D) of	1618
section 4928.08 of the Revised Code.	1619

(G) Nothing in this section limits an electric distribution	1620
utility providing competitive retail electric service to electric	1621
load centers within the certified territory of another such	1622
utility.	1623

Sec. 4928.141.  During a proceeding under section 4928.14 of	1624
the Revised Code, an electric distribution utility shall file	1625
with the commission every contract or agreement between the	1626
utility or any of its affiliates and a consumer, electric services	1627
company, political subdivision, or any party to the proceeding,	1628
including any contract or agreement that is in effect on the	1629
filing date of the utility's initial application under section	1630
4928.14 of the Revised Code as amended by      of the 127th	1631
general assembly. The details of the contract or agreement shall	1632
be made available as privileged information to intervenors in the	1633
proceeding.	1634

Sec. 4928.142.  The public utilities commission shall adopt	1635
rules prescribing advanced energy portfolio standards applicable	1636
to the standard service offers of electric distribution utilities	1637
approved under section 4928.14 of the Revised Code. In adopting	1638
the rules, the commission shall consider available technology,	1639
costs, job creation, and economic impacts. The rules shall	1640
require evaluation of and shall encourage, where necessary,	1641
development and implementation of next-generation energy	1642
technologies, including, but not limited to, renewable energy	1643
sources, clean coal technology, advanced nuclear generation, fuel	1644
cells, and cogeneration. The rules shall seek to achieve	1645
specified interim goals such that, by 2025, advanced energy	1646
technologies shall provide twenty-five per cent of the standard	1647
service offer of an electric distribution utility. The rules	1648
shall require that at least half of the advanced energy	1649
implemented shall be generated from renewable energy sources,	1650
which shall include solar power, with any remainder supplied	1651
by, but not limited to, any clean coal technology with carbon	1652
controls, advanced nuclear plant, or cogeneration project, the	1653
original construction of which technology, plant, or project is	1654
initiated after January 1, 2009. Additionally, the rules shall	1655
require that at least half of the advanced energy implemented	1656
shall be met through facilities located in this state.	1657

Sec. 4928.17.  (A) Except as otherwise provided in sections	1658
4928.14 and 4928.31 to 4928.40 of the Revised Code and beginning	1659
on the starting date of competitive retail electric service, no	1660
electric utility shall engage in this state, either directly or	1661
through an affiliate, in the businesses of supplying a	1662
noncompetitive retail electric service and supplying a	1663
competitive retail electric service, or in the businesses of	1664
supplying a noncompetitive retail electric service and supplying	1665
a product or service other than retail electric service, unless	1666
the utility implements and operates under a corporate separation	1667
plan that is approved by the public utilities commission under	1668
this section, is consistent with the policy specified in section	1669
4928.02 of the Revised Code, and achieves all of the following:	1670

(1) The plan provides, at minimum, for the provision of the	1671
competitive retail electric service or the nonelectric product or	1672
service through a fully separated affiliate of the utility, and	1673
the plan includes separate accounting requirements, the code of	1674
conduct as ordered by the commission pursuant to a rule it shall	1675
adopt under division (A) of section 4928.06 of the Revised Code,	1676
and such other measures as are necessary to effectuate the policy	1677
specified in section 4928.02 of the Revised Code.	1678

(2) The plan satisfies the public interest in preventing	1679
unfair competitive advantage and preventing the abuse of market	1680
power.	1681

(3) The plan is sufficient to ensure that the utility will	1682
not extend any undue preference or advantage to any affiliate,	1683
division, or part of its own business engaged in the business of	1684
supplying the competitive retail electric service or nonelectric	1685
product or service, including, but not limited to, utility	1686
resources such as trucks, tools, office equipment, office space,	1687
supplies, customer and marketing information, advertising, billing	1688
and mailing systems, personnel, and training, without compensation	1689
based upon fully loaded embedded costs charged to the affiliate;	1690
and to ensure that any such affiliate, division, or part will not	1691
receive undue preference or advantage from any affiliate,	1692
division, or part of the business engaged in business of supplying	1693
the noncompetitive retail electric service. No such utility,	1694
affiliate, division, or part shall extend such undue preference.	1695
Notwithstanding any other division of this section, a utility's	1696
obligation under division (A)(3) of this section shall be	1697
effective January 1, 2000.	1698

(B) The commission may approve, modify and approve, or	1699
disapprove a corporate separation plan filed with the commission	1700
under division (A) of this section. As part of the code of conduct	1701
required under division (A)(1) of this section, the commission	1702
shall adopt rules pursuant to division (A) of section 4928.06 of	1703
the Revised Code regarding corporate separation and procedures for	1704
plan filing and approval. The rules shall include limitations on	1705
affiliate practices solely for the purpose of maintaining a	1706
separation of the affiliate's business from the business of the	1707
utility to prevent unfair competitive advantage by virtue of that	1708
relationship. The rules also shall include an opportunity for any	1709
person having a real and substantial interest in the corporate	1710
separation plan to file specific objections to the plan and	1711
propose specific responses to issues raised in the objections,	1712
which objections and responses the commission shall address in its	1713
final order. Prior to commission approval of the plan, the	1714
commission shall afford a hearing upon those aspects of the plan	1715
that the commission determines reasonably require a hearing. The	1716
commission may reject and require refiling of a substantially	1717
inadequate plan under this section.	1718

(C) The commission shall issue an order approving or	1719
modifying and approving a corporate separation plan under this	1720
section, to be effective on the date specified in the order, only	1721
upon findings that the plan reasonably complies with the	1722
requirements of division (A) of this section and will provide for	1723
ongoing compliance with the policy specified in section 4928.02 of	1724
the Revised Code. However, for good cause shown, the commission	1725
may issue an order approving or modifying and approving a	1726
corporate separation plan under this section that does not comply	1727
with division (A)(1) of this section but complies with such	1728
functional separation requirements as the commission authorizes to	1729
apply for an interim period prescribed in the order, upon a	1730
finding that such alternative plan will provide for ongoing	1731
compliance with the policy specified in section 4928.02 of the	1732
Revised Code.	1733

(D) Any party may seek an amendment to a corporate separation	1734
plan approved under this section, and the commission, pursuant to	1735
a request from any party or on its own initiative, may order as it	1736
considers necessary the filing of an amended corporate separation	1737
plan to reflect changed circumstances.	1738

(E) Notwithstanding section 4905.20, 4905.21, 4905.46, or	1739
4905.48 of the Revised Code, anNo electric utility may divest	1740
itself ofshall sell or transfer any generating asset at any time	1741
facility it owns in whole or in part to any person without prior	1742
commission approval, subject to the provisions of Title XLIX of	1743
the Revised Code relating to the transfer of transmission,	1744
distribution, or ancillary service provided by such generating	1745
asset.	1746

Sec. 4928.64.  The public utilities commission shall adopt	1747
rules to establish energy efficiency standards applicable to	1748
electric distribution utilities such that, by 2025, any such	1749
utility shall implement energy efficiency measures that will	1750
result in not less than twenty-five per cent of projected growth	1751
in electric load and not less than ten per cent of total peak	1752
demand being achieved through those measures. The rules shall	1753
include a requirement that an electric distribution utility	1754
provide a customer upon request with three years' consumption data	1755
in an accessible form. Additionally, the rules may provide for	1756
decoupling.	1757

Sec. 4928.68.  The public utilities commission shall employ a	1758
federal energy advocate to monitor the activities of the federal	1759
energy regulatory commission and other federal agencies and	1760
advocate on behalf of the interests of retail electric service	1761
consumers in this state. The attorney general shall represent the	1762
advocate before the federal energy regulatory commission and other	1763
federal agencies. Among other duties assigned to the advocate by	1764
the commission, the advocate shall examine the value of the	1765
participation of this state's electric utilities in regional	1766
transmission organizations and submit a report to the public	1767
utilities commission on whether continued participation of those	1768
utilities is in the interest of those consumers.	1769

Sec. 4928.69.  The public utilities commission shall adopt	1770
rules establishing greenhouse gas emission reporting requirements,	1771
including participation in the climate registry, and carbon	1772
control planning requirements for each electric generating	1773
facility located in this state that emits greenhouse gases,	1774
including facilities in operation on the effective date of this	1775
section.	1776

Section 2.  That existing sections 122.41, 122.451, 3706.01,	1777
3706.02, 3706.03, 3706.04, 3706.041, 3706.05, 3706.06, 3706.07,	1778
3706.08, 3706.09, 3706.10, 3706.11, 3706.12, 3706.13, 3706.14,	1779
3706.15, 3706.16, 3706.17, 3706.18, 4905.31, 4905.40, 4928.02,	1780
4928.05, 4928.14, and 4928.17 of the Revised Code are hereby	1781
repealed.	1782