As Pending in the Senate Energy and Public Utilities Committee

127th General Assembly Regular Session 2007-2008

Sub. S. B. No. 221

---

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, 4928.17, 4928.20, and 4928.21

6

and to enact sections 1551.41, 4928.111,

7

4928.141, 4928.142, 4928.64, 4928.68, and

8

4928.69 of the Revised Code to revise state

9

energy policy to address electric service price

10

regulation and to provide for new bonding

11

authority for advanced energy projects,

12

advanced (including sustainable resource) energy

13

portfolio standards, energy efficiency

14

standards, and greenhouse gas emission reporting

15

and carbon control planning requirements.

16

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

Section 1. That sections 122.41, 122.451, 3706.01, 3706.02,	17
3706.03, 3706.04, 3706.041, 3706.05, 3706.06, 3706.07, 3706.08,	18
3706.09, 3706.10, 3706.11, 3706.12, 3706.13, 3706.14, 3706.15,	19
3706.16, 3706.17, 3706.18, 4905.31, 4905.40, 4928.02, 4928.05,	20
4928.14, 4928.17, 4928.20, and 4928.21 be amended and sections	21
1551.41, 4928.111, 4928.141, 4928.142, 4928.64, 4928.68, and	22
4928.69 of the Revised Code be enacted to read as follows:	23

Sec. 122.41.  (A) The development financing advisory council	24
and the director of development are invested with the powers and	25
duties provided in Chapter 122. of the Revised Code, in order to	26
promote the welfare of the people of the state, to stabilize the	27
economy, to provide employment, to assist in the development	28
within the state of industrial, commercial, distribution, and	29
research activities required for the people of the state, and for	30
their gainful employment, or otherwise to create or preserve jobs	31
and employment opportunities, or improve the economic welfare of	32
the people of the state, and also to assist in the financing of	33
air, water, or thermal pollution control facilities, advanced	34
energy facilities, and solid waste disposal facilities by mortgage	35
insurance as provided in section 122.451 of the Revised Code. It	36
is hereby determined that the accomplishment of such purposes is	37
essential so that the people of the state may maintain their	38
present high standards in comparison with the people of other	39
states and so that opportunities for employment and for favorable	40
markets for the products of the state's natural resources,	41
agriculture, and manufacturing shall be improved and that it is	42
necessary for the state to establish the programs authorized	43
pursuant to Chapter 122. of the Revised Code, to establish the	44
development financing advisory council, and to invest it and the	45
director of development with the powers and duties provided in	46
Chapter 122. of the Revised Code. The powers granted to the	47
director of development by Chapter 165. of the Revised Code are	48
independent of and in addition and alternate to, and are not	49
limited or restricted by, Chapter 122. of the Revised Code.	50

(B) The development financing advisory council shall:

51

(1) Make recommendations to the director of development as to	52
applications for assistance pursuant to sections 122.39 to 122.62	53
or Chapter 166. of the Revised Code. The council may revise its	54
recommendations to reflect any changes in the proposed assistance	55
made by the director.	56

(2) Advise the director in the administration of sections	57
122.39 to 122.62 and Chapter 166. of the Revised Code;	58

(3) Adopt bylaws to govern the conduct of the council's	59
business.	60

Sec. 122.451.  Upon application of any person, partnership,	61
or corporation, or upon application of any community improvement	62
corporation organized as provided in section 1724.01 of the	63
Revised Code, the director of development, with controlling board	64
approval, may, pledging therefor moneys in the mortgage insurance	65
fund created by section 122.561 of the Revised Code, insure or	66
make advance commitments to insure not more than ninety per cent	67
of any mortgage payments required. Before insuring any such	68
mortgage payments the director shall determine that:	69

(A) The project, in accordance with Section 13 of Article	70
VIII, Ohio Constitution, will create or preserve jobs and	71
employment opportunities, or improve the economic welfare of the	72
people of the state, or be an air quality facility, advanced	73
energy facility, waste water facility, or solid waste facility, as	74
defined in section 3706.01, 6121.01, or 6123.01 of the Revised	75
Code.	76

(B) The principal obligation, including initial service	77
charges and appraisal, inspection, and other fees approved by the	78
director, does not exceed one hundred per cent of the cost of the	79
project.	80

(C) The mortgage has a satisfactory maturity date in no case	81
later than twenty-five years from the date of the insurance.	82

(D) The mortgagor is responsible and able to meet the	83
payments under the mortgage.	84

(E) The mortgage contains complete amortization provisions	85
satisfactory to the director requiring periodic payments by the	86
mortgagor which may include principal and interest payments, cost	87
of local property taxes and assessments, land lease rentals, if	88
any, and hazard insurance on the property and such mortgage	89
insurance premiums as are required under section 122.561 of the	90
Revised Code, all as the director from time to time prescribes or	91
approves.	92

(F) The mortgage is in such form and contains such terms and	93
provisions with respect to property insurance, repairs,	94
alterations, payment of taxes and assessments, default reserves,	95
delinquency charges, default remedies, anticipation of maturity,	96
additional and secondary liens, and other matters as the director	97
may prescribe.	98

The director may take assignments of insured mortgages and	99
other forms of security and may take title by foreclosure or	100
conveyance to any project when an insured mortgage loan thereon is	101
clearly in default and when in the opinion of the director such	102
acquisition is necessary to safeguard the mortgage insurance fund,	103
and may sell, or on a temporary basis lease or rent, such project.	104

Sec. 1551.41.  The department of natural resources, the	105
environmental protection agency, and the public utilities	106
commission jointly by rule shall develop an interim policy	107
framework for the supervision and regulation by those agencies of	108
pilot and demonstration carbon sequestration activities located	109
in or sequestration products produced in this state.	110

Sec. 3706.01.  As used in this chapter:

111

(A) "Governmental agency" means a department, division, or	112
other unit of state government, a municipal corporation, county,	113
township, and other political subdivision, or any other public	114
corporation or agency having the power to acquire, construct, or	115
operate air quality facilities, the United States or any agency	116
thereof, and any agency, commission, or authority established	117
pursuant to an interstate compact or agreement.	118

(B) "Person" means any individual, firm, partnership,	119
association, or corporation, or any combination thereof.	120

(C) "Air contaminant" means particulate matter, dust, fumes,	121
gas, mist, smoke, noise, vapor, heat, radioactivity, radiation, or	122
odorous substance, or any combination thereof.	123

(D) "Air pollution" means the presence in the ambient air of	124
one or more air contaminants in sufficient quantity and of such	125
characteristics and duration as to injure human health or welfare,	126
plant or animal life, or property, or that unreasonably interferes	127
with the comfortable enjoyment of life or property.	128

(E) "Ambient air" means that portion of the atmosphere	129
outside of buildings and other enclosures, stacks, or ducts that	130
surrounds human, plant, or animal life, or property.	131

(F) "Emission" means the release into the outdoor atmosphere	132
of an air contaminant.	133

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

134

(1) Any method,or any modification or replacement of	135
property, process, device, structure, or equipment that removes,	136
reduces, prevents, contains, alters, conveys, stores, disperses,	137
or disposes of air contaminants or substances containing air	138
contaminants, or that renders less noxious or reduces the	139
concentration of air contaminants in the ambient air, including,	140
without limitation, facilities and expenditures that qualify as	141
air pollution control facilities under section 103 (C)(4)(F) of	142
the Internal Revenue Code of 1954, as amended, and regulations	143
adopted thereunder;	144

(2) Motor vehicle inspection stations operated in accordance	145
with, and any equipment used for motor vehicle inspections	146
conducted under, section 3704.14 of the Revised Code and rules	147
adopted under it;	148

(3) Ethanol or other biofuel facilities, including any	149
equipment used at the ethanol or other biofuel facility for the	150
production of ethanol or other biofuels;	151

(4) Any property or portion thereof used for the collection,	152
storage, treatment, utilization, processing, or final disposal of	153
a by-product or solid waste resulting from any method, process,	154
device, structure, or equipment that removes, reduces, prevents,	155
contains, alters, conveys, stores, disperses, or disposes of air	156
contaminants, or that renders less noxious or reduces the	157
concentration of air contaminants in the ambient air;	158

(5) Any property, device, or equipment that promotes the	159
reduction of emissions of air contaminants into the ambient air	160
through improvements in the efficiency of energy utilization or	161
energy conservation;	162

(6) Any coal research and development project conducted under	163
Chapter 1555. of the Revised Code;	164

(7) As determined by the director of the Ohio coal	165
development office, any property or portion thereof that is used	166
for the collection, storage, treatment, utilization, processing,	167
or final disposal of a by-product resulting from a coal research	168
and development project as defined in section 1555.01 of the	169
Revised Code or from the use of clean coal technology, excluding	170
any property or portion thereof that is used primarily for other	171
subsequent commercial purposes;	172

(8) Any property or portion thereof that is part of the	173
FutureGen project of the United States department of energy or	174
related to the siting of the FutureGen project;	175

(9) Any property, device, or equipment that reduces emissions	176
of air contaminants into the ambient air through the generation of	177
electricity using sustainable resources;	178

(10) Any property, device, or equipment necessary for the	179
manufacture and production of equipment that qualifies as an air	180
quality facility.	181

"Air quality facility" further includes any property or	182
system to be used in whole or in part for any of the purposes in	183
divisions (G)(1) to (8)(10) of this section, whether another	184
purpose is also served, and any property or system incidental to	185
or that has to do with, or the end purpose of which is, any of the	186
foregoing. Air quality facilities that are defined in this	187
division for industry, commerce, distribution, or research,	188
including public utility companies, are hereby determined to be	189
those that qualify as facilities for the control of air pollution	190
and thermal pollution related to air under Section 13 of Article	191
VIII, Ohio Constitution.	192

(H) "Project," or "air quality project," or "advanced energy	193
project" means any air quality facility or advanced energy	194
facility, including undivided or other interests therein, acquired	195
or to be acquired or constructed or to be constructed by the Ohio	196
air quality development authority under this chapter, or acquired	197
or to be acquired or constructed or to be constructed by a	198
governmental agency or person with all or a part of the cost	199
thereof being paid from a loan or grant from the authority under	200
this chapter or otherwise paid from the proceeds of air quality	201
revenue bonds, including all buildings and facilities that the	202
authority determines necessary for the operation of the project,	203
together with all property, rights, easements, and interests that	204
may be required for the operation of the project.	205

(I) "Cost" as applied to an air quality project or advanced	206
energy project means the cost of acquisition and construction, the	207
cost of acquisition of all land, rights-of-way, property rights,	208
easements, franchise rights, and interests required for such	209
acquisition and construction, the cost of demolishing or removing	210
any buildings or structures on land so acquired, including the	211
cost of acquiring any lands to which such buildings or structures	212
may be moved, the cost of acquiring or constructing and equipping	213
a principal office and sub-offices of the authority, the cost of	214
diverting highways, interchange of highways, and access roads to	215
private property, including the cost of land or easements for such	216
access roads, the cost of public utility and common carrier	217
relocation or duplication, the cost of all machinery, furnishings,	218
and equipment, financing charges, interest prior to and during	219
construction and for no more than eighteen months after completion	220
of construction, engineering, expenses of research and development	221
with respect to air quality facilities, the cost of any commodity	222
contract, including fees and expenses related thereto, legal	223
expenses, plans, specifications, surveys, studies, estimates of	224
cost and revenues, working capital, other expenses necessary or	225
incident to determining the feasibility or practicability of	226
acquiring or constructing such project, administrative expense,	227
and such other expense as may be necessary or incident to the	228
acquisition or construction of the project, the financing of such	229
acquisition or construction, including the amount authorized in	230
the resolution of the authority providing for the issuance of air	231
quality revenue bonds to be paid into any special funds from the	232
proceeds of such bonds, and the financing of the placing of such	233
project in operation. Any obligation, cost, or expense incurred by	234
any governmental agency or person for surveys, borings,	235
preparation of plans and specifications, and other engineering	236
services, or any other cost described above, in connection with	237
the acquisition or construction of a project may be regarded as a	238
part of the cost of that project and may be reimbursed out of the	239
proceeds of air quality revenue bonds as authorized by this	240
chapter.	241

(J) "Owner" includes an individual, copartnership,	242
association, or corporation having any title or interest in any	243
property, rights, easements, or interests authorized to be	244
acquired by this chapter.	245

(K) "Revenues" means all rentals and other charges received	246
by the authority for the use or services of any air quality	247
project, any gift or grant received with respect to any air	248
quality project, any moneys received with respect to the lease,	249
sublease, sale, including installment sale or conditional sale, or	250
other disposition of an air quality project, moneys received in	251
repayment of and for interest on any loans made by the authority	252
to a person or governmental agency, whether from the United States	253
or any department, administration, or agency thereof, or	254
otherwise, proceeds of such bonds to the extent that use thereof	255
for payment of principal of, premium, if any, or interest on the	256
bonds is authorized by the authority, amounts received or	257
otherwise derived from a commodity contract or from the sale of	258
the related commodity under such a contract, proceeds from any	259
insurance, condemnation, or guaranty pertaining to a project or	260
property mortgaged to secure bonds or pertaining to the financing	261
of the project, and income and profit from the investment of the	262
proceeds of air quality revenue bonds or of any revenues.	263

(L) "Public roads" includes all public highways, roads, and	264
streets in the state, whether maintained by the state, county,	265
city, township, or other political subdivision.	266

(M) "Public utility facilities" includes tracks, pipes,	267
mains, conduits, cables, wires, towers, poles, and other equipment	268
and appliances of any public utility.	269

(N) "Construction," unless the context indicates a different	270
meaning or intent, includes reconstruction, enlargement,	271
improvement, or providing furnishings or equipment.	272

(O) "Air quality revenueRevenue bonds," unless the context	273
indicates a different meaning or intent, includes air quality	274
revenue notes, air quality revenue renewal notes, and air quality	275
revenue refunding bonds, except that notes issued in anticipation	276
of the issuance of bonds shall have a maximum maturity of five	277
years as provided in section 3706.05 of the Revised Code and	278
notes or renewal notes issued as the definitive obligation may be	279
issued maturing at such time or times with a maximum maturity of	280
forty years from the date of issuance of the original note.	281

(P) "Solid waste" means any garbage; refuse; sludge from a	282
waste water treatment plant, water supply treatment plant, or air	283
pollution control facility; and other discarded material,	284
including solid, liquid, semisolid, or contained gaseous material	285
resulting from industrial, commercial, mining, and agricultural	286
operations, and from community activities, but not including solid	287
or dissolved material in domestic sewage, or solid or dissolved	288
material in irrigation return flows or industrial discharges that	289
are point sources subject to permits under section 402 of the	290
"Federal Water Pollution Control Act Amendments of 1972," 86 Stat.	291
880, 33 U.S.C.A. 1342, as amended, or source, special nuclear, or	292
byproduct material as defined by the "Atomic Energy Act of 1954,"	293
68 Stat. 921, 42 U.S.C.A. 2011, as amended.	294

(Q) "Sludge" means any solid, semisolid, or liquid waste,	295
other than a recyclable by-product, generated from a municipal,	296
commercial, or industrial waste water treatment plant, water	297
supply plant, or air pollution control facility or any other such	298
wastes having similar characteristics and effects.	299

(R) "Ethanol or other biofuel facility" means a plant at	300
which ethanol or other biofuel is produced.	301

(S) "Ethanol" means fermentation ethyl alcohol derived from	302
agricultural products, including potatoes, cereal, grains, cheese	303
whey, and sugar beets; forest products; or other renewable or	304
biomass resources, including residue and waste generated from the	305
production, processing, and marketing of agricultural products,	306
forest products, and other renewable or biomass resources, that	307
meets all of the specifications in the American society for	308
testing and materials (ASTM) specification D 4806-88 and is	309
denatured as specified in Parts 20 and 21 of Title 27 of the Code	310
of Federal Regulations.	311

(T) "Biofuel" means any fuel that is made from cellulosic	312
biomass resources, including renewable organic matter, crop waste	313
residue, wood, aquatic plants and other crops, animal waste, solid	314
waste, or sludge, and that is used for the production of energy	315
for transportation or other purposes.	316

(U) "FutureGen project" means the buildings, equipment, and	317
real property and functionally related buildings, equipment, and	318
real property, including related research projects that support	319
the development and operation of the buildings, equipment, and	320
real property, designated by the United States department of	321
energy and the FutureGen industrial alliance, inc., as the	322
coal-fueled, zero-emissions power plant designed to prove the	323
technical and economic feasibility of producing electricity and	324
hydrogen from coal and nearly eliminating carbon dioxide emissions	325
through capture and permanent storage.	326

(V) "Commodity contract" means a contract or series of	327
contracts entered into in connection with the acquisition or	328
construction of air quality facilities or advanced energy	329
facilities for the purchase or sale of a commodity that is	330
eligible for prepayment with the proceeds of federally taxable or	331
tax exempt bonds under sections 103, 141, and 148 of the Internal	332
Revenue Code of 1986, as amended, and regulations adopted under	333
it.	334

(W) "Sustainable resources" includes, but is not limited to,	335
solar, wind, tidal or wave, biomass, including, but not limited	336
to, biomass involving the utilization of trees or any part	337
thereof, biofuel, hydro, or geothermal resources that are used in	338
the generation of electricity and includes fuel cells powered by	339
sustainable resources.	340

(X) "Advanced energy facility" means any method or any	341
modification or replacement of any property, process, device,	342
structure, or equipment that meets any of the following:	343

(1) With regard to clean coal technology, technology that	344
includes the design capability to control or prevent the emission	345
of carbon dioxide, which design capability the commission shall	346
adopt by rule and shall be based on economically feasible best	347
available technology or, in the absence of a determined best	348
available technology, shall be of the highest level of	349
economically feasible design capability for which there exists	350
generally accepted scientific opinion;	351

(2) With regard to advanced nuclear energy production,	352
consists of generation III technology as defined by the nuclear	353
regulatory commission, other later technology, or significant	354
improvements to existing facilities;	355

(3) With regard to fuel cells used in the generation of	356
electricity, consists of, but is not limited to, a proton exchange	357
membrane fuel cell, phosphoric acid fuel cell, molten carbonate	358
fuel cell, or solid fuel cell;	359

(4) With regard to cogeneration technology, consists of a	360
technology using a heat engine or power station to generate	361
electricity and useful heat simultaneously.	362

"Advanced energy facility" further includes any property or	363
system to be used in whole or in part for any of the purposes of	364
divisions (X)(1) to (4) of this section, whether another purpose	365
also is served, and any property or system incidental to or that	366
has to do with, or the end purpose of which is, any of the	367
foregoing.	368

Sec. 3706.02.  There is hereby created the Ohio air quality	369
development authority. Such authority is a body both corporate and	370
politic in this state, and the carrying out of its purposes and	371
the exercise by it of the powers conferred by Chapter 3706. of the	372
Revised Code shall be held to be, and are hereby determined to be,	373
essential governmental functions and public purposes of the state,	374
but the authority shall not be immune from liability by reason	375
thereof.	376

The authority shall consist of seven members as follows: five	377
members appointed by the governor, with the advice and consent of	378
the senate, no more than three of whom shall be members of the	379
same political party, and the director of environmental protection	380
and the director of health, who shall be members ex officio	381
without compensation. Each appointive member shall be a resident	382
of the state, and a qualified elector therein. The members of the	383
authority first appointed shall continue in office for terms	384
expiring on June 30, 1971, June 30, 1973, June 30, 1975, June 30,	385
1977, and June 30, 1978, respectively, the term of each member to	386
be designated by the governor. Appointed members' terms of office	387
shall be for eight years, commencing on the first day of July and	388
ending on the thirtieth day of June. Each appointed member shall	389
hold office from the date of his appointment until the end of the	390
term for which he was appointed. Any member appointed to fill a	391
vacancy occurring prior to the expiration of the term for which	392
histhe member's predecessor was appointed shall hold office for	393
the remainder of such term. Any appointed member shall continue in	394
office subsequent to the expiration date of histhe member's term	395
until histhe member's successor takes office, or until a period	396
of sixty days has elapsed, whichever occurs first. A member of the	397
authority is eligible for reappointment. Each appointed member of	398
the authority, before entering upon hisofficial duties, shall	399
take an oath as provided by Section 7 of Article XV, Ohio	400
Constitution. The governor may at any time remove any member of	401
the authority for misfeasance, nonfeasance, or malfeasance in	402
office. The authority shall elect one of its appointed members as	403
chairmanchairperson and another as vice-chairman	404
vice-chairperson, and shall appoint a secretary-treasurer who	405
need not be a member of the authority. Four members of the	406
authority shall constitute a quorum, and the affirmative vote of	407
four members shall be necessary for any action taken by vote of	408
the authority. No vacancy in the membership of the authority shall	409
impair the rights of a quorum by such vote to exercise all the	410
rights and perform all the duties of the authority.	411

Before the issuance of any air quality revenue bonds under	412
Chapter 3706. of the Revised Code, each appointed member of the	413
authority shall give a surety bond to the state in the penal sum	414
of twenty-five thousand dollars and the secretary-treasurer shall	415
give such a bond in the penal sum of fifty thousand dollars, each	416
such surety bond to be conditioned upon the faithful performance	417
of the duties of the office, to be executed by a surety company	418
authorized to transact business in this state, and to be approved	419
by the governor and filed in the office of the secretary of state.	420
Each appointed member of the authority shall receive an annual	421
salary of five thousand dollars, payable in monthly installments.	422
Each member shall be reimbursed for histhe actual expenses	423
necessarily incurred in the performance of hisofficial duties.	424
All expenses incurred in carrying out Chapter 3706. of the Revised	425
Code shall be payable solely from funds provided under Chapter	426
3706. of the Revised Code, appropriated for such purpose by the	427
general assembly, or provided by the controlling board. No	428
liability or obligation shall be incurred by the authority beyond	429
the extent to which moneys have been so provided or appropriated.	430

Sec. 3706.03. (A) It is hereby declared to be the public	431
policy of the state through the operations of the Ohio air	432
quality development authority under this chapter to contribute	433
toward one or more of the following: to provide for the	434
conservation of air as a natural resource of the state, and to	435
prevent or abate the pollution thereof, to provide for the	436
comfort, health, safety, and general welfare of all employees, as	437
well as all other inhabitants of the state, to assist in the	438
financing of air quality facilities and advanced energy	439
facilities for industry, commerce, distribution, and research,	440
including public utility companies, to create or preserve jobs	441
and employment opportunities or improve the economic welfare of	442
the people, or assist and cooperate with governmental agencies in	443
achieving such purposes. InAdditionally, advanced energy	444
facilities for industry, commerce, distribution, or research,	445
including public utility companies, are hereby deemed to qualify	446
as facilities for the control of air pollution and thermal	447
pollution related to air under Section 13, Article VIII, Ohio	448
Constitution.	449

(B) In furtherance of such public policy the Ohio air	450
quality development authority may initiate, acquire, construct,	451
maintain, repair, and operate air quality projects and advanced	452
energy projects or cause the same to be operated pursuant to a	453
lease, sublease, or agreement with any person or governmental	454
agency; may make loans and grants to governmental agencies for	455
the acquisition or construction of air quality facilities and	456
advanced energy facilities by such governmental agencies; may	457
make loans to persons for the acquisition or construction of air	458
quality facilities and advanced energy facilities by such persons;	459
may enter into commodity contracts with, or make loans for the	460
purpose of entering into commodity contracts to, any person,	461
governmental agency, or entity located within or without the	462
state in connection with the acquisition or construction of air	463
quality facilities and advanced energy facilities; and may issue	464
air quality revenue bonds of this state payable solely from	465
revenues, to pay the cost of such projects, including any related	466
commodity contracts. Any air quality project or advanced energy	467
project shall be determined by the authority to be not	468
inconsistent with any applicable air quality standards duly	469
established and then required to be met pursuant to the "Clean	470
Air Act," 84 Stat. 1679 (1970), 42 U.S.C.A. 1857, as amended. Any	471
resolution of the authority providing for acquiring or	472
constructing such projects or for making a loan or grant for such	473
projects shall include a finding by the authority that such	474
determination has been made. Determinations by resolution of the	475
authority that a project is an air quality facility or advanced	476
energy facility under this chapter and is consistent with the	477
purposes of section 13 of Article VIII, Ohio Constitution, and	478
this chapter, shall be conclusive as to the validity and	479
enforceability of the air quality revenue bonds issued to finance	480
such project and of the resolutions, trust agreements or	481
indentures, leases, subleases, sale agreements, loan agreements,	482
and other agreements made in connection therewith, all in	483
accordance with their terms.	484

(C) Nothing in this chapter authorizes the Ohio air quality	485
development authority to build, own, or operate an air quality	486
facility or advanced energy facility, except as may be required to	487
effect the financing of the facility.	488

Sec. 3706.04.  The Ohio air quality development authority	489
may:	490

(A) Adopt bylaws for the regulation of its affairs and the	491
conduct of its business;	492

(B) Adopt an official seal;

493

(C) Maintain a principal office and suboffices at such places	494
within the state as it designates;	495

(D) Sue and plead in its own name; be sued and impleaded in	496
its own name with respect to its contracts or torts of its	497
members, employees, or agents acting within the scope of their	498
employment, or to enforce its obligations and covenants made under	499
sections 3706.05, 3706.07, and 3706.12 of the Revised Code. Any	500
such actions against the authority shall be brought in the court	501
of common pleas of the county in which the principal office of the	502
authority is located, or in the court of common pleas of the	503
county in which the cause of action arose, provided such county is	504
located within this state, and all summonses, exceptions, and	505
notices of every kind shall be served on the authority by leaving	506
a copy thereof at the principal office with the person in charge	507
thereof or with the secretary-treasurer of the authority.	508

(E) Make loans and grants to governmental agencies for the	509
acquisition or construction of air quality projects or advanced	510
energy projects by any such governmental agency and adopt rules	511
and procedures for making such loans and grants;	512

(F) Acquire, construct, reconstruct, enlarge, improve,	513
furnish, equip, maintain, repair, operate, lease or rent to, or	514
contract for operation by, a person or governmental agency, air	515
quality projects or advanced energy projects, and establish rules	516
for the use of such projects;	517

(G) Make available the use or services of any air quality	518
project or advanced energy project to one or more persons, one or	519
more governmental agencies, or any combination thereof;	520

(H) Issue air quality revenue bonds and notes and air quality	521
revenue refunding bonds of the state, payable solely from revenues	522
as provided in section 3706.05 of the Revised Code, unless the	523
bonds be refunded by refunding bonds, for the purpose of paying	524
any part of the cost of one or more air quality projects or	525
advanced energy projects or parts thereof;	526

(I) Acquire by gift or purchase, hold, and dispose of real	527
and personal property in the exercise of the powers of the	528
authority and the performance of its duties under this chapter;	529

(J) Acquire, in the name of the state, by purchase or	530
otherwise, on such terms and in such manner as the authority finds	531
proper, or by the exercise of the right of condemnation in the	532
manner provided by section 3706.17 of the Revised Code, such	533
public or private lands, including public parks, playgrounds, or	534
reservations, or parts thereof or rights therein, rights-of-way,	535
property, rights, easements, and interests as it finds necessary	536
for carrying out this chapter, but excluding the acquisition by	537
the exercise of the right of condemnation of any air quality	538
facility or advanced energy facility owned by any person or	539
governmental agency; and compensation shall be paid for public or	540
private lands so taken;	541

(K) Make and enter into all contracts and agreements and	542
execute all instruments necessary or incidental to the performance	543
of its duties and the execution of its powers under this chapter.	544

(1) When the cost under any such contract or agreement, other	545
than compensation for personal services, involves an expenditure	546
of more than two thousand dollars, the authority shall make a	547
written contract with the lowest responsive and responsible	548
bidder, in accordance with section 9.312 of the Revised Code,	549
after advertisement for not less than two consecutive weeks in a	550
newspaper of general circulation in Franklin county, and in such	551
other publications as the authority determines, which notice shall	552
state the general character of the work and the general character	553
of the materials to be furnished, the place where plans and	554
specifications therefor may be examined, and the time and place of	555
receiving bids; provided, that a contract or lease for the	556
operation of an air quality project or advanced energy project	557
constructed and owned by the authority or an agreement for	558
cooperation in the acquisition or construction of an air quality	559
project or advanced energy project pursuant to section 3706.12 of	560
the Revised Code or any contract for the construction of an air	561
quality project or advanced energy project that is to be leased by	562
the authority to, and operated by, persons whothat are not	563
governmental agencies and the cost of such project is to be	564
amortized exclusively from rentals or other charges paid to the	565
authority by persons whothat are not governmental agencies is not	566
subject to the foregoing requirements and the authority may enter	567
into such contract, lease, or agreement pursuant to negotiation	568
and upon such terms and conditions and for such period as it finds	569
to be reasonable and proper in the circumstances and in the best	570
interests of proper operation or of efficient acquisition or	571
construction of such project.	572

(2) Each bid for a contract for the construction, demolition,	573
alteration, repair, or reconstruction of an improvement shall	574
contain the full name of every person interested in it and meet	575
the requirements of section 153.54 of the Revised Code.	576

(3) Each bid for a contract except as provided in division	577
(K)(2) of this section shall contain the full name of every person	578
interested in it and shall be accompanied by a sufficient bond or	579
certified check on a solvent bank that if the bid is accepted a	580
contract will be entered into and the performance thereof secured.	581

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

582

(5) A bond with good and sufficient surety, approved by the	583
authority, shall be required of every contractor awarded a	584
contract except as provided in division (K)(2) of this section, in	585
an amount equal to at least fifty per cent of the contract price,	586
conditioned upon the faithful performance of the contract.	587

(L) Employ managers, superintendents, and other employees and	588
retain or contract with consulting engineers, financial	589
consultants, accounting experts, architects, attorneys, and such	590
other consultants and independent contractors as are necessary in	591
its judgment to carry out this chapter, and fix the compensation	592
thereof. All expenses thereof shall be payable solely from the	593
proceeds of air quality revenue bonds or notes issued under this	594
chapter, from revenues, or from funds appropriated for such	595
purpose by the general assembly.	596

(M) Receive and accept from any federal agency, subject to	597
the approval of the governor, grants for or in aid of the	598
construction of any air quality project or advanced energy project	599
or for research and development with respect to air quality	600
facilities and advanced energy facilities, and receive and accept	601
aid or contributions from any source of money, property, labor, or	602
other things of value, to be held, used, and applied only for the	603
purposes for which such grants and contributions are made;	604

(N) Engage in research and development with respect to air	605
quality facilities and advanced energy facilities;	606

(O) Purchase fire and extended coverage and liability	607
insurance for any air quality project and advanced energy project	608
and for the principal office and suboffices of the authority,	609
insurance protecting the authority and its officers and employees	610
against liability for damage to property or injury to or death of	611
persons arising from its operations, and any other insurance the	612
authority may agree to provide under any resolution authorizing	613
its air quality revenue bonds or in any trust agreement securing	614
the same;	615

(P) Charge, alter, and collect rentals and other charges for	616
the use or services of any air quality project or advanced energy	617
project as provided in section 3706.13 of the Revised Code;	618

(Q) Provide coverage for its employees under Chapters 145.,	619
4123., and 4141. of the Revised Code;	620

(R) Develop, encourage, promote, support, and implement	621
programs to achieve best cost rates for state-owned buildings,	622
facilities, and operations, state-supported colleges and	623
universities, willing local governments, and willing school	624
districts through pooled purchases of electricity and the	625
financing of taxable or tax-exempt prepayment of commodities;	626

(S) Develop, encourage, promote, support, and implement	627
programs to achieve optimal cost financing for electric	628
generating facilities to be constructed on or after January 1,	629
2009;	630

(T) Develop, encourage, and provide incentives for	631
investments in energy efficiency;	632

(U) Develop, encourage, promote, and support implementation	633
in this state of sustainable resource energy installations;	634

(V) Lead, encourage, promote, and support siting, financing,	635
construction, and operation for early implementations of	636
next-generation base load generating systems, including clean coal	637
generating facilities with carbon capture or sequestration or	638
advanced nuclear power plants, and reduce the costs of associated	639
risks;	640

(W) Engage in and coordinate state-supported energy research	641
and development with respect to reliable, affordable, and	642
sustainable energy in this state;	643

(X) Develop, encourage, promote, support, and implement	644
programs to attract and retain key industrial and	645
energy-intensive sectors of the economy of this state;	646

(Y) Do all acts necessary or proper to carry out the powers	647
expressly granted in this chapter.	648

Any instrument by which real property is acquired pursuant to	649
this section shall identify the agency of the state that has the	650
use and benefit of the real property as specified in section	651
5301.012 of the Revised Code.	652

Sec. 3706.041.  (A) With respect to projects, and the	653
financing thereof, for industry, commerce, distribution, or	654
research, including public utility companies, under agreements	655
whereby the person to whom the project is to be leased, subleased,	656
or sold, or to whom a loan is to be made for the project, is to	657
make payments sufficient to pay all of the principal of, premium,	658
if any, and interest on the air quality revenue bonds issued for	659
the project, or the counterparty under any related commodity	660
contract agrees to make payments sufficient in amount to pay all	661
of the principal of, premium, if any, and interest on the related	662
air quality revenue bonds, the Ohio air quality development	663
authority may, in addition to other powers under this chapter:	664

(1) Make loans for the acquisition or construction of the	665
project to such person upon such terms as the authority may	666
determine or authorize, including secured or unsecured loans, and,	667
in connection therewith, enter into loan agreements and other	668
agreements, including commodity contracts, accept notes and other	669
forms of obligation to evidence such indebtedness and mortgages,	670
liens, pledges, assignments, or other security interests to secure	671
such indebtedness, which may be prior or subordinate to or on a	672
parity with other indebtedness, obligations, mortgages, pledges,	673
assignments, other security interests, or liens or encumbrances,	674
and take such actions as may be considered by it appropriate to	675
protect such security and safeguard against losses, including,	676
without limitation thereto, foreclosure and the bidding upon and	677
purchase of property upon foreclosure or other sale.	678

(2) Sell such project under such terms as it may determine,	679
including, without limitation thereto, sale by conditional sale or	680
installment sale, under which title may pass prior to or after	681
completion of the project or payment or provisions for payment of	682
all principal of, premium, if any, and interest on such bonds, or	683
at any other time provided in such agreement pertaining to such	684
sale, and including sale under an option to purchase at a price	685
which may be a nominal amount or less than true value at the time	686
of purchase.	687

(3) Grant a mortgage, lien, or other encumbrance on, or	688
pledge or assignment of, or other security interest with respect	689
to, all or any part of the project, revenues, reserve funds, or	690
other funds established in connection with such bonds, or on, of,	691
or with respect to any lease, sublease, sale, conditional sale or	692
installment sale agreement, loan agreement, or other agreement	693
pertaining to the lease, sublease, sale, or other disposition of a	694
project or pertaining to a loan made for a project, or any	695
guaranty or insurance agreement made with respect thereto, or any	696
interest of the authority therein, or any other interest granted,	697
assigned, or released to secure payments of the principal of,	698
premium, if any, or interest on the bonds or to secure any other	699
payments to be made by the authority, which mortgage, lien,	700
encumbrance, pledge, assignment, or other security interest may be	701
prior or subordinate to or on a parity with any other mortgage,	702
assignment, other security interest, or lien or encumbrance.	703

(4) Provide that the interest on such bonds may be at a	704
variable rate or rates changing from time to time in accordance	705
with a base or formula as authorized by the authority.	706

(5) Contract for the acquisition or construction of such	707
project or any part thereof, including any related commodity	708
contracts, and for the leasing, subleasing, sale or other	709
disposition of such project in a manner determined by the	710
authority in its sole discretion, without necessity for	711
competitive bidding or performance bonds.	712

(B) Property comprising a project shall not be subject to	713
taxes or assessments and so long as the bonds or notes issued to	714
finance the costs of such project are outstanding, and the	715
transfer of title to or possession of such property to the person	716
to whom a loan or installment sale or conditional sale with	717
respect to such project is made shall not be subject to the taxes	718
levied pursuant to Chapters 5739. and 5741. of the Revised Code.	719

The authority shall certify the property comprising a project	720
which is exempt from taxes and assessments pursuant to this	721
section, and shall send, by certified mail, copies of such	722
certification to the owner of such exempt property, to the tax	723
commissioner, and to the county auditor of the county or counties	724
in which any such exempt property is located.	725

Each county auditor shall maintain a separate list of all	726
property exempt pursuant to this section and sections 6121.044 and	727
6123.041 of the Revised Code, in addition to the list of exempt	728
property required to be maintained pursuant to section 5713.07 of	729
the Revised Code.	730

(C) The authority, in the lease, sale or loan agreement with	731
respect to a project referred to in division (A) of this section,	732
shall make appropriate provision for adequate maintenance of the	733
project.	734

(D) With respect to the projects referred to in this section,	735
the authority granted by this section is cumulative and	736
supplementary to all other authority granted in this chapter. The	737
authority granted by this section does not alter or impair any	738
similar authority granted elsewhere in this chapter for or with	739
respect to other projects.	740

Sec. 3706.05.  The Ohio air quality development authority may	741
at any time issue revenue bonds and notes of the state in such	742
principal amount as, in the opinion of the authority, are	743
necessary for the purpose of paying any part of the cost of one or	744
more air quality projects or advanced energy projects or parts	745
thereof, including one or more payments pursuant to a commodity	746
contract entered into in connection with the acquisition or	747
construction of air quality facilities or advanced energy	748
facilities. The authority may at any time issue renewal notes,	749
issue bonds to pay such notes and whenever it deems refunding	750
expedient, refund any bonds by the issuance of air quality revenue	751
refunding bonds of the state, whether the bonds to be refunded	752
have or have not matured, and issue bonds partly to refund bonds	753
then outstanding, and partly for any other authorized purpose. The	754
refunding bonds shall be sold and the proceeds applied to the	755
purchase, redemption, or payment of the bonds to be refunded.	756
Except as may otherwise be expressly provided by the authority,	757
every issue of its bonds or notes shall be general obligations of	758
the authority payable out of the revenues of the authority that	759
are pledged for such payment, without preference or priority of	760
the first bonds issued, subject only to any agreements with the	761
holders of particular bonds or notes pledging any particular	762
revenues. Such pledge shall be valid and binding from the time the	763
pledge is made and the revenues so pledged and thereafter received	764
by the authority shall immediately be subject to the lien of such	765
pledge without any physical delivery thereof or further act, and	766
the lien of any such pledge is valid and binding as against all	767
parties having claims of any kind in tort, contract, or otherwise	768
against the authority, irrespective of whether such parties have	769
notice thereof. Neither the resolution nor any trust agreement by	770
which a pledge is created need be filed or recorded except in the	771
records of the authority.	772

Whether or not the bonds or notes are of such form and	773
character as to be negotiable instruments, the bonds or notes	774
shall have all the qualities and incidents of negotiable	775
instruments, subject only to the provisions of the bonds or notes	776
for registration.	777

The bonds and notes shall be authorized by resolution of the	778
authority, shall bear such date or dates, and shall mature at such	779
time or times, in the case of any such note or any renewals	780
thereof not exceeding five years from the date of issue of such	781
original note and in the case of any such bond not exceeding forty	782
years from the date of issue, as such resolution or resolutions	783
may provide. The bonds and notes shall bear interest at such rate	784
or rates, be in such denominations, be in such form, either coupon	785
or registered, carry such registration privileges, be payable in	786
such medium of payment, at such place or places, and be subject to	787
such terms of redemption as the authority may authorize. The bonds	788
and notes of the authority may be sold by the authority, at public	789
or private sale, at or at not less than such price or prices as	790
the authority determines. The bonds and notes shall be executed by	791
the chairperson and vice-chairperson of the authority, either or	792
both of whom may use a facsimile signature, the official seal of	793
the authority or a facsimile thereof shall be affixed thereto or	794
printed thereon and attested, manually or by facsimile signature,	795
by the secretary-treasurer of the authority, and any coupons	796
attached thereto shall bear the signature or facsimile signature	797
of the chairperson of the authority. In case any officer whose	798
signature, or a facsimile of whose signature, appears on any	799
bonds, notes or coupons ceases to be such officer before delivery	800
of bonds or notes, such signature or facsimile shall nevertheless	801
be sufficient for all purposes the same as if the officer had	802
remained in office until such delivery, and in case the seal of	803
the authority has been changed after a facsimile has been	804
imprinted on such bonds or notes, such facsimile seal will	805
continue to be sufficient for all purposes.	806

Any resolution or resolutions authorizing any bonds or notes	807
or any issue thereof may contain provisions, subject to such	808
agreements with bondholders or noteholders as may then exist,	809
which provisions shall be a part of the contract with the holders	810
thereof, as to: the pledging of all or any part of the revenues of	811
the authority to secure the payment of the bonds or notes or of	812
any issue thereof; the use and disposition of revenues of the	813
authority; a covenant to fix, alter, and collect rentals and other	814
charges so that pledged revenues will be sufficient to pay costs	815
of operation, maintenance, and repairs, pay principal of and	816
interest on bonds or notes secured by the pledge of such revenues,	817
and provide such reserves as may be required by the applicable	818
resolution or trust agreement; the setting aside of reserve funds,	819
sinking funds, or replacement and improvement funds and the	820
regulation and disposition thereof; the crediting of the proceeds	821
of the sale of bonds or notes to and among the funds referred to	822
or provided for in the resolution authorizing the issuance of the	823
bonds or notes; the use, lease, sale, or other disposition of any	824
air quality project or any other assets of the authority;	825
limitations on the purpose to which the proceeds of sale of bonds	826
or notes may be applied and the pledging of such proceeds to	827
secure the payment of the bonds or notes or of any issue thereof;	828
as to notes issued in anticipation of the issuance of bonds, the	829
agreement of the authority to do all things necessary for the	830
authorization, issuance, and sale of such bonds in such amounts as	831
may be necessary for the timely retirement of such notes;	832
limitations on the issuance of additional bonds or notes; the	833
terms upon which additional bonds or notes may be issued and	834
secured; the refunding of outstanding bonds or notes; the	835
procedure, if any, by which the terms of any contract with	836
bondholders or noteholders may be amended or abrogated, the amount	837
of bonds or notes the holders of which must consent thereto, and	838
the manner in which such consent may be given; limitations on the	839
amount of moneys to be expended by the authority for operating,	840
administrative, or other expenses of the authority; securing any	841
bonds or notes by a trust agreement in accordance with section	842
3706.07 of the Revised Code; any other matters, of like or	843
different character, that in any way affect the security or	844
protection of the bonds or notes.	845

Neither the members of the authority nor any person executing	846
the bonds or notes shall be liable personally on the bonds or	847
notes or be subject to any personal liability or accountability by	848
reason of the issuance thereof.	849

Sec. 3706.06.  The issuance of air quality revenue bonds and	850
notes or air quality revenue refunding bonds under Chapter 3706.	851
of the Revised Code need not comply with any other law applicable	852
to the issuance of bonds or notes.	853

Sec. 3706.07.  In the discretion of the Ohio air quality	854
development authority, any air quality revenue bonds or notes or	855
air quality revenue refunding bonds issued under Chapter 3706. of	856
the Revised Code, may be secured by a trust agreement between the	857
authority and a corporate trustee, which trustee may be any trust	858
company or bank having the powers of a trust company within or	859
without the state.	860

Any such trust agreement may pledge or assign revenues of the	861
authority to be received, but shall not convey or mortgage any air	862
quality project or any part thereof. Any such trust agreement or	863
any resolution providing for the issuance of such bonds or notes	864
may contain such provisions for protecting and enforcing the	865
rights and remedies of the bondholders or noteholders as are	866
reasonable and proper and not in violation of law, including	867
covenants setting forth the duties of the authority in relation to	868
the acquisition of property, the construction, improvement,	869
maintenance, repair, operation, and insurance of the air quality	870
project or projects in connection with which such bonds or notes	871
are authorized, the rentals or other charges to be imposed for the	872
use or services of any air quality project, the application of	873
revenues received or otherwise derived from a commodity contract	874
or from the sale of the related commodity under such contract, the	875
custody, safeguarding, and application of all moneys, and	876
provisions for the employment of consulting engineers in	877
connection with the construction or operation of such air quality	878
project or projects. Any bank or trust company incorporated under	879
the laws of this state that may act as depository of the proceeds	880
of bonds or notes or of revenues may furnish such indemnifying	881
bonds or may pledge such securities as are required by the	882
authority. Any such trust agreement may set forth the rights and	883
remedies of the bondholders and noteholders and of the trustee,	884
and may restrict the individual right of action by bondholders and	885
noteholders as is customary in trust agreements or trust	886
indentures securing similar bonds. Such trust agreement may	887
contain such other provisions as the authority determines	888
reasonable and proper for the security of the bondholders or	889
noteholders. All expenses incurred in carrying out the provisions	890
of any such trust agreement may be treated as a part of the cost	891
of the operation of the air quality project or projects. Any such	892
trust agreement or resolution authorizing the issuance of air	893
quality revenue bonds may provide the method whereby the general	894
administrative overhead expenses of the authority shall be	895
allocated among the several projects acquired or constructed by it	896
as a factor of the operation expense of each such project.	897

Sec. 3706.08.  Any holder of air quality revenue bonds issued	898
under Chapter 3706. of the Revised Code, or any of the coupons	899
appertaining thereto, and the trustee under any trust agreement,	900
except to the extent the rights given by such chapter may be	901
restricted by the applicable resolution or such trust agreement,	902
may by suit, action, mandamus, or other proceedings, protect and	903
enforce any rights under the laws of the state or granted under	904
such chapter, trust agreement, or the resolution authorizing the	905
issuance of such bonds, and may enforce and compel the performance	906
of all duties required by such chapter, or by the trust agreement	907
or resolution, to be performed by the Ohio air quality development	908
authority or any officer thereof, including the fixing, charging,	909
and collecting of rentals or other charges.	910

Sec. 3706.09. Air quality revenueRevenue bonds and notes	911
and air quality revenue refunding bonds issued under Chapter 3706.	912
of the Revised Code do not constitute a debt, or a pledge of the	913
faith and credit, of the state or any political subdivision	914
thereof, and the holders or owners thereof have no right to have	915
taxes levied by the general assembly or taxing authority of any	916
political subdivision of the state for the payment of the	917
principal thereof or interest thereon, but such bonds and notes	918
are payable solely from the revenues and funds pledged for their	919
payment as authorized by such chapter, unless the notes are issued	920
in anticipation of the issuance of bonds or the bonds are refunded	921
by refunding bonds issued under such chapter, which bonds or	922
refunding bonds shall be payable solely from revenues and funds	923
pledged for their payment as authorized by such sections. All such	924
bonds and notes shall contain on the face thereof a statement to	925
the effect that the bonds or notes, as to both principal and	926
interest, are not debts of the state or any political subdivision	927
thereof, but are payable solely from revenues and funds pledged	928
for their payment.	929

All expenses incurred in carrying out Chapter 3706. of the	930
Revised Code are payable solely from funds provided under such	931
chapter. Such chapter does not authorize the Ohio air quality	932
development authority to incur indebtedness or liability on behalf	933
of or payable by the state or any political subdivision thereof.	934

Sec. 3706.10.  All moneys, funds, properties, and assets	935
acquired by the Ohio air quality development authority under	936
Chapter 3706. of the Revised Code, whether as proceeds from the	937
sale of air quality revenue bonds or as revenues, or otherwise,	938
shall be held by it in trust for the purposes of carrying out its	939
powers and duties, shall be used and reused as provided in such	940
chapter, and shall at no time be part of other public funds. Such	941
funds, except as otherwise provided in any resolution authorizing	942
its air quality revenue bonds or in any trust agreement securing	943
the same, or except when invested pursuant to section 3706.11 of	944
the Revised Code, shall be kept in depositories selected by the	945
authority in the manner provided in Chapter 135. of the Revised	946
Code, and the deposits shall be secured as provided in Chapter	947
135. of the Revised Code. The resolution authorizing the issuance	948
of such bonds of any issue or the trust agreement securing such	949
bonds shall provide that any officer to whom, or any bank or trust	950
company to which, such moneys are paid shall act as trustee of	951
such moneys and hold and apply them for the purposes hereof,	952
subject to such conditions as such chapter and such resolutions or	953
trust agreement provide.	954

Sec. 3706.11.  Moneys in the funds of the Ohio air quality	955
development authority, except as otherwise provided in any	956
resolution authorizing the issuance of its air quality revenue	957
bonds or in any trust agreement securing the same, in excess of	958
current needs, may be invested in notes, bonds, or other	959
obligations of the United States of America or any agency or	960
instrumentality thereof, or in obligations of this state or any	961
political subdivision thereof. Income from all such investments of	962
moneys in any fund shall be credited to such funds as the	963
authority determines, subject to the provisions of any such	964
resolution or trust agreement and such investments may be sold at	965
such times as the authority determines.	966

Sec. 3706.12.  The Ohio air quality development authority may	967
charge, alter, and collect rentals or other charges for the use or	968
services of any air quality project or advanced energy project and	969
contract in the manner provided by this section with one or more	970
persons, one or more governmental agencies, or any combination	971
thereof, desiring the use or services of such project, and fix the	972
terms, conditions, rentals, or other charges for such use or	973
services. Such rentals or other charges shall not be subject to	974
supervision or regulation by any other authority, commission,	975
board, bureau, or agency of the state and such contract may	976
provide for acquisition by such person or governmental agency of	977
all or any part of such air quality project or advanced energy	978
project for such consideration payable over the period of the	979
contract or otherwise as the authority in its sole discretion	980
determines to be appropriate, but subject to the provisions of any	981
resolution authorizing the issuance of air quality revenue bonds	982
or notes or air quality revenue refunding bonds of the authority	983
or any trust agreement securing the same. Any governmental agency	984
that has power to construct, operate, and maintain air quality	985
facilities or advanced energy facilities may enter into a contract	986
or lease with the authority whereby the use or services of any air	987
quality project or advanced energy project of the authority will	988
be made available to such governmental agency and may pay for such	989
use or services such rentals or other charges as may be agreed to	990
by the authority and such governmental agency.	991

Any governmental agency or combination of governmental	992
agencies may cooperate with the authority in the acquisition or	993
construction of an air quality project or advanced energy project	994
and shall enter into such agreements with the authority as may be	995
necessary, with a view to effective cooperative action and	996
safeguarding of the respective interests of the parties thereto,	997
which agreements shall provide for such contributions by the	998
parties thereto in such proportion as may be agreed upon and such	999
other terms as may be mutually satisfactory to the parties	1000
including without limitation the authorization of the construction	1001
of the project by one of the parties acting as agent for all of	1002
the parties and the ownership and control of the project by the	1003
authority to the extent necessary or appropriate for purposes of	1004
the issuance of air quality revenue bonds by the authority. Any	1005
governmental agency may provide the funds for the payment of such	1006
contribution as is required under such agreements by the levy of	1007
taxes, assessments or rentals and other charges for the use of the	1008
utility system of which the air quality project or advanced energy	1009
project is a part or to which it is connected, if otherwise	1010
authorized by the laws governing such governmental agency in the	1011
construction of the type of air quality project or advanced energy	1012
project provided for in the agreements, and may pay the proceeds	1013
from the collection of such taxes, assessments, utility rentals,	1014
or other charges to the authority pursuant to such agreements; or	1015
the governmental agency may issue bonds or notes, if authorized by	1016
such laws, in anticipation of the collection of such taxes,	1017
assessments, utility rentals, or other charges and may pay the	1018
proceeds of such bonds or notes to the authority pursuant to such	1019
agreements. In addition any governmental agency may provide the	1020
funds for the payment of such contribution by the appropriation of	1021
money or, if otherwise authorized by law, by the issuance of bonds	1022
or notes and may pay such appropriated money or the proceeds of	1023
such bonds or notes to the authority pursuant to such agreements.	1024
The agreement by the governmental agency to provide such	1025
contribution, whether from appropriated money or from the proceeds	1026
of such taxes, assessments, utility rentals, or other charges, or	1027
such bonds or notes, or any combination thereof, shall not be	1028
subject to Chapter 133. of the Revised Code or any regulations or	1029
limitations contained therein. The proceeds from the collection of	1030
such taxes or assessments, and any interest earned thereon, shall	1031
be paid into a special fund immediately upon the collection	1032
thereof by the governmental agency for the purpose of providing	1033
such contribution at the times required under such agreements.	1034

When the contribution of any governmental agency is to be	1035
made over a period of time from the proceeds of the collection of	1036
special assessments, the interest accrued and to accrue before the	1037
first installment of such assessments shall be collected which is	1038
payable by such governmental agency on such contribution under the	1039
terms and provisions of such agreements shall be treated as part	1040
of the cost of the improvement for which such assessments are	1041
levied, and that portion of such assessments as are collected in	1042
installments shall bear interest at the same rate as such	1043
governmental agency is obligated to pay on such contribution under	1044
the terms and provisions of such agreements and for the same	1045
period of time as the contribution is to be made under such	1046
agreements. If the assessment or any installment thereof is not	1047
paid when due, it shall bear interest until the payment thereof at	1048
the same rate as such contribution and the county auditor shall	1049
annually place on the tax list and duplicate the interest	1050
applicable to such assessment and the penalty and additional	1051
interest thereon as otherwise authorized by law.	1052

Any governmental agency, pursuant to a favorable vote of the	1053
electors in an election held before or after June 1, 1970, for the	1054
purpose of issuing bonds to provide funds to acquire, construct,	1055
or equip, or provide real estate and interests in real estate for,	1056
an air quality facility or advanced energy facility, whether or	1057
not such governmental agency, at the time of such election, had	1058
the authority to pay the proceeds from such bonds or notes issued	1059
in anticipation thereof to the authority as provided in this	1060
section, may issue such bonds or notes in anticipation of the	1061
issuance thereof and pay the proceeds thereof to the authority in	1062
accordance with its agreement with the authority; provided, that	1063
the legislative authority of the governmental agency find and	1064
determine that the air quality project or advanced energy project	1065
to be acquired or constructed by the authority in cooperation with	1066
such governmental agency will serve the same public purpose and	1067
meet substantially the same public need as the facility otherwise	1068
proposed to be acquired or constructed by the governmental agency	1069
with the proceeds of such bonds or notes.	1070

Sec. 3706.13.  Each air quality project or advanced energy	1071
project, when constructed and placed in operation, shall be	1072
maintained and kept in good condition and repair by the Ohio air	1073
quality development authority, or the authority shall cause the	1074
same to be maintained and kept in good condition and repair. Each	1075
such project shall be operated by such operating employees as the	1076
authority employs or pursuant to a contract or lease with a person	1077
or governmental agency. All public or private property damaged or	1078
destroyed in carrying out the powers granted by Chapter 3706. of	1079
the Revised Code, shall be restored or repaired and placed in its	1080
original condition, as nearly as practicable, or adequate	1081
compensation shall be paid therefor from funds provided under such	1082
chapter.	1083

On or before the twentieth day of April in each year, the	1084
authority shall make a report of its activities for the preceding	1085
calendar year to the governor and the general assembly. Each such	1086
report shall set forth a complete operating and financial	1087
statement covering the authority's operations during the year. The	1088
authority shall cause an audit of its books and accounts to be	1089
made at least once each year by certified public accountants and	1090
the cost thereof may be treated as a part of the cost of	1091
construction or of operations of its projects.	1092

Sec. 3706.14.  All air quality revenue bonds issued under	1093
this chapter are lawful investments of banks, societies for	1094
savings, savings and loan associations, deposit guarantee	1095
associations, trust companies, trustees, fiduciaries, insurance	1096
companies, including domestic for life and domestic not for life,	1097
trustees or other officers having charge of sinking and bond	1098
retirement or other special funds of political subdivisions and	1099
taxing districts of this state, the commissioners of the sinking	1100
fund of the state, the administrator of workers' compensation, the	1101
state teachers retirement system, the public employees retirement	1102
system, the school employees retirement system, and the Ohio	1103
police and fire pension fund, and are acceptable as security for	1104
the deposit of public moneys.	1105

Sec. 3706.15.  The exercise of the powers granted by Chapter	1106
3706. of the Revised Code, will be for the benefit of the people	1107
of the state, for the improvement of their health, safety,	1108
convenience, and welfare, and for the enhancement of their	1109
residential, agricultural, recreational, economic, commercial, and	1110
industrial opportunities and is a public purpose. As the operation	1111
and maintenance of air quality projects or advanced energy	1112
projects will constitute the performance of essential governmental	1113
functions, the Ohio air quality development authority shall not be	1114
required to pay any taxes or assessments upon any air qualitysuch	1115
project, or upon any property acquired or used by the authority	1116
under Chapter 3706. of the Revised Code, or upon the income	1117
therefrom, nor shall the transfer to or from the Ohio air quality	1118
development authority of title or possession of any air quality	1119
project or advanced energy project, part thereof, or item included	1120
or to be included in any such project, be subject to the taxes	1121
levied pursuant to Chapters 5739. and 5741. of the Revised Code,	1122
and the bonds and notes issued under this chapter, their transfer,	1123
and the income therefrom, including any profit made on the sale	1124
thereof, shall at all times be free from taxation within the	1125
state.	1126

Sec. 3706.16.  The Ohio air quality development authority may	1127
acquire by purchase, whenever it finds such purchase expedient,	1128
any land, property, rights, rights-of-way, franchises, easements,	1129
and other interests in lands as it finds to be necessary or	1130
convenient for the construction and operation of any air quality	1131
project or advanced energy project, upon such terms and at such	1132
price as it considers reasonable and are agreed upon between the	1133
authority and the owner thereof, and take title thereto in the	1134
name of the state.	1135

Any governmental agency, notwithstanding any contrary	1136
provision of law and without the necessity for an advertisement,	1137
auction, order of court, or other action or formality, other than	1138
the regular and formal action of such governmental agency	1139
concerned, may lease, lend, grant, or convey to the authority, at	1140
its request, upon such terms as the proper authorities of such	1141
governmental agency find reasonable and fair any real property or	1142
interests therein including improvements thereto or personal	1143
property which is necessary or convenient to effect the authorized	1144
purposes of the authority, including public roads and real or	1145
personal property already devoted to public use.	1146

Sec. 3706.17.  The Ohio air quality development authority may	1147
acquire by appropriation pursuant to division (J) of section	1148
3706.04 of the Revised Code any land, rights, rights-of-way,	1149
franchises, easements, or other property necessary or proper for	1150
the construction or the efficient operation of any air quality	1151
project or advanced energy project. In any proceedings for	1152
appropriation under this section, the procedure to be followed	1153
shall be in accordance with Chapter 163. of the Revised Code.	1154

This section does not empower the authority to take or	1155
disturb property or facilities belonging to and required for the	1156
proper and convenient operation of any public utility or any	1157
common carrier engaged in interstate commerce, unless provision is	1158
made for the restoration, relocation, or duplication of such	1159
property or facilities elsewhere at the sole cost of the	1160
authority.	1161

Sec. 3706.18.  When the Ohio air quality development	1162
authority finds it necessary to change the location of any portion	1163
of any public road, state highway, railroad, or public utility	1164
facility in connection with the construction of an air quality	1165
project or advanced energy project, it shall cause the same to be	1166
reconstructed at such location as the division of government	1167
having jurisdiction over such road, highway, railroad, or public	1168
utility facility finds most favorable. Such reconstruction shall	1169
be of substantially the same type and in as good condition as the	1170
original road, highway, railroad, or public utility facility. The	1171
cost of such reconstruction, relocation, or removal and any damage	1172
incurred in changing the location of any such road, highway,	1173
railroad, or public utility facility shall be paid by the	1174
authority as a part of the cost of such air qualitythe project.	1175

When the authority finds it necessary that any public highway	1176
or portion thereof be vacated by reason of the acquisition or	1177
construction of an air quality project or advanced energy project,	1178
the authority may request the director of transportation, in	1179
writing, to vacate such highway or portion thereof in accordance	1180
with section 5511.07 of the Revised Code if the highway or portion	1181
thereof to be vacated is on the state highway system, or, if the	1182
highway or portion thereof to be vacated is under the jurisdiction	1183
of the county commissioners, the authority shall request the	1184
director, in writing, to petition the board of county	1185
commissioners, in the manner provided in section 5553.041 of the	1186
Revised Code, to vacate such highway or portion thereof. The	1187
authority shall pay to the director or to the county, as a part	1188
of the cost of such air qualitythe project, any amounts required	1189
to be deposited with any court in connection with proceedings for	1190
the determination of compensation and damages and all amounts of	1191
compensation and damages finally determined to be payable as a	1192
result of such vacation.	1193

The authority may make reasonable regulations for the	1194
installation, construction, maintenance, repair, renewal,	1195
relocation, and removal of railroad or public utility facilities	1196
in, on, over, or under any air quality project or advanced energy	1197
project. Whenever the authority determines that it is necessary	1198
that any such facilities installed or constructed in, on, over, or	1199
under property of the authority pursuant to such regulations be	1200
relocated, the public utility owning or operating such facilities	1201
shall relocate or remove them in accordance with the order of the	1202
authority. The cost and expenses of such relocation or removal,	1203
including the cost of installing such facilities in a new	1204
location, and the cost of any lands, or any rights or interests in	1205
lands, and the cost of any other rights, acquired to accomplish	1206
such relocation or removal, may be paid by the authority as a part	1207
of the cost of such air qualitythe project. In case of any such	1208
relocation or removal of facilities, the railroad or public	1209
utility owning or operating them, its successors, or assigns may	1210
maintain and operate such facilities, with the necessary	1211
appurtenances, in the new location in, on, over, or under the	1212
property of the authority for as long a period and upon the same	1213
terms as it had the right to maintain and operate such facilities	1214
in their former location.	1215

Sec. 4905.31.  Except as provided in section 4933.29 of the	1216
Revised Code, Chapters 4901., 4903., 4905., 4907., 4909., 4921.,	1217
and 4923., and 4928. of the Revised Code do not prohibit a public	1218
utility from filing a schedule or entering into any reasonable	1219
arrangement with another public utility or with its customers,	1220
consumers, or employees providing for:	1221

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

1222

(B) A sliding scale of charges, including variations in rates	1223
based upon either of the following:	1224

(1) Stipulated variations in cost as provided in the schedule	1225
or arrangement;	1226

(2) Any emissions fee levied upon an electric light company	1227
under Substitute Senate Bill No. 359 of the 119th general assembly	1228
as provided in the schedule. The public utilities commission shall	1229
permit an electric light company to recover the emissions fee	1230
pursuant to such a variable rate schedule.	1231

(3) Any emissions fee levied upon an electric light company	1232
under division (C) or (D) of section 3745.11 of the Revised Code	1233
as provided in the schedule. The public utilities commission shall	1234
permit an electric light company to recover any such emission fee	1235
pursuant to such a variable rate schedule.	1236

(4) Any schedule of variable rates filed under division (B)	1237
of this section shall provide for the recovery of any such	1238
emissions fee by applying a uniform percentage increase to the	1239
base rate charged each customer of the electric light company for	1240
service during the period that the variable rate is in effect.	1241

(C) A minimum charge for service to be rendered unless such	1242
minimum charge is made or prohibited by the terms of the	1243
franchise, grant, or ordinance under which such public utility is	1244
operated;	1245

(D) A classification of service based upon the quantity used,	1246
the time when used, the purpose for which used, the duration of	1247
use, and any other reasonable consideration;	1248

(E) Any other financial device that may be practicable or	1249
advantageous to the parties interested. No such arrangement,	1250
sliding scale, minimum charge, classification, variable rate, or	1251
device is lawful unless it is filed with and approved by the	1252
commission.	1253

Every such public utility is required to conform its	1254
schedules of rates, tolls, and charges to such arrangement,	1255
sliding scale, classification, or other device, and where variable	1256
rates are provided for in any such schedule or arrangement, the	1257
cost data or factors upon which such rates are based and fixed	1258
shall be filed with the commission in such form and at such times	1259
as the commission directs. The commission shall review the cost	1260
data or factors upon which a variable rate schedule filed under	1261
division (B)(2) or (3) of this section is based and shall adjust	1262
the base rates of the electric light company or order the company	1263
to refund any charges that it has collected under the variable	1264
rate schedule that the commission finds to have resulted from	1265
errors or erroneous reporting. After recovery of all of the	1266
emissions fees upon which a variable rate authorized under	1267
division (B)(2) or (3) of this section is based, collection of the	1268
variable rate shall end and the variable rate schedule shall be	1269
terminated.	1270

Every such arrangement, sliding scale, minimum charge,	1271
classification, variable rate, or device shall be under the	1272
supervision and regulation of the commission, and is subject to	1273
change, alteration, or modification by the commission.	1274

Sec. 4905.40.  (A) A public utility or a railroad may, when	1275
authorized by order of the public utilities commission, issue	1276
stocks, bonds, notes, and other evidences of indebtedness, payable	1277
at periods of more than twelve months after their date of	1278
issuance, when necessary:	1279

(1) For the acquisition of property, the construction,	1280
completion, extension, renewal, or improvement of its facilities,	1281
or the improvement of its service; or	1282

(2) For reorganization or readjustment of its indebtedness	1283
and capitalization, for the discharge or lawful refunding of its	1284
obligation, or for the reimbursement of moneys actually expended	1285
for such purposes from income or from any other moneys in the	1286
treasury of the public utility or railroad not secured or obtained	1287
from the issue of stocks, bonds, notes, or other evidences of	1288
indebtedness of such public utility or railroad. No reimbursement	1289
of moneys expended for such purposes from income or other moneys	1290
in the treasury shall be authorized unless the applicant has kept	1291
its accounts and vouchers of such expenditures in such manner as	1292
to enable the commission to ascertain the amount and purposes of	1293
such expenditures.	1294

(B) Any public utility, subject to the jurisdiction of the	1295
commission, may, when authorized by the commission, issue shares	1296
of common capital stock to acquire or pay for shares of common	1297
capital stock of a public utility of this or an adjoining state	1298
whose property is so located as to permit the operation of the	1299
properties of such utilities as an integrated system if the	1300
applicant owns, or by this issue will acquire, not less than	1301
sixty-five per cent of the issued and outstanding common capital	1302
shares of the company whose shares are to be acquired, and if the	1303
consideration to be capitalized by the acquiring company does not	1304
exceed the par or stated value at which the shares so acquired	1305
were issued.	1306

(C) Any bonds, notes, or other evidences of indebtedness	1307
payable at periods of more than twelve months after their date may	1308
be issued as provided in sections 4905.40 to 4905.43 of the	1309
Revised Code, regardless of the amount of the capital stock of the	1310
public utility or railroad, subject to the approval of the	1311
commission of the excess of such bonds, notes, or other evidences	1312
of indebtedness above the amount of the capital stock of such	1313
public utility or railroad.	1314

(D) The commission shall authorize on the best terms	1315
obtainable such issues of stocks, bonds, and other evidences of	1316
indebtedness as are necessary to enable any public utility to	1317
comply with any contract made between such public utility and any	1318
municipal corporation prior to June 30, 1911.	1319

(E) The commission may authorize a public utility that is an	1320
electric light company to issue equity securities, or debt	1321
securities having a term of more than twelve months from the date	1322
of issuance, for the purpose of yielding to the company the	1323
capacity to acquire a facility that produces fuel for the	1324
generation of electricity.	1325

(F) In any proceeding under division (A)(1) of this section	1326
initiated by a public utility, the commission shall determine and	1327
set forth in its order:	1328

(1) Whether the purpose to which the issue or any proceeds of	1329
it shall be applied was or is reasonably required by the utility	1330
to meet its present and prospective obligations to provide utility	1331
service;	1332

(2) Whether the amount of the issue and the probable cost of	1333
such stocks, bonds, notes, or other evidences of indebtedness is	1334
just and reasonable;	1335

(3) What effect, if any, the issuance of such stocks, bonds,	1336
notes, or other evidences of indebtedness and the cost thereof	1337
will have upon the present and prospective revenue requirements of	1338
the utility.	1339

(G) Sections 4905.40 to 4905.42 of the Revised Code do not	1340
apply to stocks, bonds, notes, or other evidence of indebtedness	1341
issued for the purpose of financing oil or natural gas drilling,	1342
producing, gathering, and associated activities and facilities by	1343
a producer which supplies to no more than twenty purchasers only	1344
such gas as is produced, gathered, or purchased by such producer	1345
within this state.	1346

(H) Each public utility seeking authorization from the	1347
commission for the issuance of securities to finance the	1348
installation, construction, extension, or improvement of an air	1349
quality facility or advanced energy facility, as defined in	1350
section 3706.01 of the Revised Code, shall consider the	1351
availability of financing therefor from the Ohio air quality	1352
development authority and shall demonstrate to the commission that	1353
the proposed financing will be obtained on the best terms	1354
obtainable.	1355

Sec. 4928.02.  It is the policy of this state to do the	1356
following throughout this state beginning on the starting date of	1357
competitive retail electric service:	1358

(A) Ensure the availability to consumers of adequate,	1359
reliable, safe, efficient, nondiscriminatory, and reasonably	1360
priced retail electric service;	1361

(B) Ensure the availability of unbundled and comparable	1362
retail electric service that provides consumers with the supplier,	1363
price, terms, conditions, and quality options they elect to meet	1364
their respective needs;	1365

(C) Ensure diversity of electricity supplies and suppliers,	1366
by giving consumers effective choices over the selection of those	1367
supplies and suppliers and by encouraging the development of	1368
distributed and small generation facilities;	1369

(D) Encourage innovation and market access for cost-effective	1370
supply- and demand-side retail electric service including, but not	1371
limited to, demand-side management, time-differentiated pricing,	1372
and implementation of advanced metering infrastructure;	1373

(E) Encourage cost-effective and efficient access to	1374
information regarding the operation of the transmission and	1375
distribution systems of electric utilities in order to promote	1376
both effective customer choice of retail electric service and the	1377
development of performance standards and targets for service	1378
quality for all consumers, including annual achievement reports	1379
written in plain language;	1380

(F) Recognize the continuing emergence of competitive	1381
electricity markets through the development and implementation of	1382
flexible regulatory treatment;	1383

(G) Ensure effective competition in the provision of retail	1384
electric service by avoiding anticompetitive subsidies flowing	1385
from a noncompetitive retail electric service to a competitive	1386
retail electric service or to a product or service other than	1387
retail electric service, and vice versa;	1388

(H) Ensure retail electric service consumers just and	1389
reasonable rates and protection against unreasonable sales	1390
practices, market deficiencies, and market power;	1391

(I) Preclude imbalances in knowledge and expertise among	1392
parties in a proceeding under this chapter to eliminate any	1393
appearance of disproportionate influence by any of those parties;	1394

(J) Ensure that consumers and shareholders share the benefits	1395
of electric utility investment in facilities supplying retail	1396
electric generation service;	1397

(K) Provide coherent, transparent means of giving appropriate	1398
incentives to technologies that can adapt successfully to	1399
potential environmental mandates;	1400

(L) Protect at-risk populations when considering the	1401
implementation of any new advanced energy technology;	1402

(M) Encourage implementation of distributed generation across	1403
customer classes through regular review and updating of rules	1404
governing critical issues such as, but not limited to,	1405
interconnection standards, standby charges, and net metering;	1406

(N) Encourage the education of small business owners in this	1407
state regarding the use of, and encourage the use of, energy	1408
efficiency programs and advanced energy technologies in their	1409
businesses;	1410

(O) Facilitate the state's effectiveness in the global	1411
economy.	1412

Sec. 4928.05.  (A)(1)(a) On and after the starting date of	1413
competitive retail electric service, a competitive retail electric	1414
service supplied by an electric utility or electric services	1415
company shall not be subject to supervision and regulation by a	1416
municipal corporation under Chapter 743. of the Revised Code or by	1417
the public utilities commission under Chapters 4901. to 4909.,	1418
4933., 4935., and 4963. of the Revised Code, except section	1419
sections 4905.10 and 4905.31, division (B) of section 4905.33, and	1420
sections 4905.35 and 4933.81 to 4933.90; except sections 4905.06,	1421
4935.03, 4963.40, and 4963.41 of the Revised Code only to the	1422
extent related to service reliability and public safety; and	1423
except as otherwise provided in this chapter. The commission's	1424
authority to enforce those excepted provisions with respect to a	1425
competitive retail electric service shall be such authority as is	1426
provided for their enforcement under Chapters 4901. to 4909.,	1427
4933., 4935., and 4963. of the Revised Code and this chapter.	1428

(b) Notwithstanding division (A)(1)(a) of this section, the	1429
commission may so supervise and regulate competitive retail	1430
electric service provided to consumers by an electric utility in	1431
this state if the commission determines the supervision and	1432
regulation is necessary to implement the state policy specified in	1433
section 4928.02 of the Revised Code.	1434

(c) On and after the starting date of competitive retail	1435
electric service, a competitive retail electric service supplied	1436
by an electric cooperative shall not be subject to supervision and	1437
regulation by the commission under Chapters 4901. to 4909., 4933.,	1438
4935., and 4963. of the Revised Code, except as otherwise	1439
expressly provided in sections 4928.01 to 4928.10 and 4928.16 of	1440
the Revised Code.	1441

(2) On and after the starting date of competitive retail	1442
electric service, a noncompetitive retail electric service	1443
supplied by an electric utility shall be subject to supervision	1444
and regulation by the commission under Chapters 4901. to 4909.,	1445
4933., 4935., and 4963. of the Revised Code and this chapter, to	1446
the extent that authority is not preempted by federal law. The	1447
commission's authority to enforce those provisions with respect to	1448
a noncompetitive retail electric service shall be the authority	1449
provided under those chapters and this chapter, to the extent the	1450
authority is not preempted by federal law.	1451

The commission shall exercise its jurisdiction with respect	1452
to the delivery of electricity by an electric utility in this	1453
state on or after the starting date of competitive retail electric	1454
service so as to ensure that no aspect of the delivery of	1455
electricity by the utility to consumers in this state that	1456
consists of a noncompetitive retail electric service is	1457
unregulated.	1458

On and after that starting date, a noncompetitive retail	1459
electric service supplied by an electric cooperative shall not be	1460
subject to supervision and regulation by the commission under	1461
Chapters 4901. to 4909., 4933., 4935., and 4963. of the Revised	1462
Code, except sections 4933.81 to 4933.90 and 4935.03 of the	1463
Revised Code. The commission's authority to enforce those excepted	1464
sections with respect to a noncompetitive retail electric service	1465
of an electric cooperative shall be such authority as is provided	1466
for their enforcement under Chapters 4933. and 4935. of the	1467
Revised Code.	1468

(B) Nothing in this chapter affects the authority of the	1469
commission under Title XLIX of the Revised Code to regulate an	1470
electric light company in this state or an electric service	1471
supplied in this state prior to the starting date of competitive	1472
retail electric service.	1473

Sec. 4928.111.  An electric distribution utility for which a	1474
standard service offer consisting of an electric security plan	1475
under section 4928.14 of the Revised Code has been approved by the	1476
public utilities commission shall file with the commission a	1477
long-term energy delivery infrastructure modernization plan or any	1478
plan providing for the utility's recovery of costs and a just and	1479
reasonable rate of return on such infrastructure modernization. A	1480
plan shall specify the initiatives the utility must take to	1481
improve electric service reliability by rebuilding, upgrading, or	1482
replacing the utility's distribution system. The plan shall be	1483
filed under an application under section 4909.18 of the Revised	1484
Code.	1485

Sec. 4928.14.  (A) After its market development period, anAn	1486
electric distribution utility in this state shall provide	1487
consumers, on a comparable and nondiscriminatory basis within its	1488
certified territory, a market-based standard service offer of all	1489
competitive retail electric services necessary to maintain	1490
essential electric service to consumers, including a firm supply	1491
of electric generation service. Such offer shall be filed with the	1492
public utilities commission under section 4909.18 of the Revised	1493
Code.	1494

(B) After that market development period, each electric	1495
distribution utility also shall offer customers within its	1496
certified territory an option to purchase competitive retail	1497
electric service the price of which is determined through a	1498
competitive bidding process. Prior to January 1, 2004, the	1499
commission shall adopt rules concerning the conduct of the	1500
competitive bidding process, including the information	1501
requirements necessary for customers to choose this option and the	1502
requirements to evaluate qualified bidders. The commission may	1503
require that the competitive bidding process be reviewed by an	1504
independent third party. No generation supplier shall be	1505
prohibited from participating in the bidding process, provided	1506
that any winning bidder shall be considered a certified supplier	1507
for purposes of obligations to customers. At the election of the	1508
electric distribution utility, and approval of the commission, the	1509
competitive bidding option under this division may be used as the	1510
market-based standard offer required by division (A) of this	1511
section. The commission may determine at any time that a	1512
competitive bidding process is not required, if other means to	1513
accomplish generally the same option for customers is readily	1514
available in the market and a reasonable means for customer	1515
participation is developed.	1516

(C) After the market development period, the(B) Except as	1517
otherwise provided in this section, the standard service offer of	1518
an electric utility in effect on the effective date of the	1519
amendment of this section by S.B. 221 of the 127th general	1520
assembly shall continue, as to each customer and customer class,	1521
as the utility's standard service offer for the purpose of	1522
compliance with division (A) of this section as the section is so	1523
amended.	1524

(C) Beginning on the effective date of the amendment of this	1525
section by S.B. 221 of the 127th general assembly and pursuant to	1526
filing requirements the commission shall prescribe by rule, a	1527
utility may file an application for commission approval of a	1528
modified standard service offer. Upon that filing, the commission	1529
shall set the date and time for hearing, send written notice of	1530
the hearing to the utility, and publish notice of the hearing one	1531
time in a newspaper of general circulation in each county in the	1532
service area affected by the application.	1533

(D)(1) A standard service offer proposed under division (C)	1534
of this section, and herein designated an electric security plan,	1535
shall adjust a utility's standard service offer relative to a	1536
change in one or more costs incurred on or after January 1, 2009,	1537
by the utility in rendering retail electric generation service	1538
under the offer, as each such cost shall be specified in the	1539
application. However, the amount of the adjustment shall be offset	1540
by any positive revenue associated with that cost. Costs may	1541
include, but not be limited to, any of the following:	1542

(a) Environmental compliance costs incurred by the utility	1543
for any specified generating facility, as determined by the	1544
commission;	1545

(b) The utility's cost of fuel for any specified generating	1546
facility or of purchased power, incurred to maintain reliable	1547
electricity supply for its generating service territory;	1548

(c) The cost of construction of a specified generating	1549
facility that is located in this state and that, superseding	1550
Chapter 4906. of the Revised Code, the commission determines and	1551
certificates the need for on the basis of resource planning	1552
projections developed in accordance with policies and procedures	1553
the commission shall prescribe by rule. A price adjustment under	1554
division (D)(1)(c) of this section shall be a blended price and	1555
shall be for the life of the facility.	1556

(d) A cost based upon a specified index, which cost shall be	1557
allocated to the appropriate customer class or classes.	1558

However, costs under this division shall exclude financial	1559
penalties, fines, court costs, and attorney's fees associated with	1560
noncompliance with state or federal environmental laws or with	1561
facilities' permits.	1562

A standard service offer that includes costs under division	1563
(D)(1)(a), (b), or (c) of this section may provide for automatic	1564
increases or decreases in the standard service offer price. A	1565
standard service offer that includes costs under division	1566
(D)(1)(d) of this section shall provide for automatic increases or	1567
decreases in the standard service offer price or prices.	1568

In the case of an advanced energy technology or facility	1569
under section 4928.142 of the Revised Code, the costs of which are	1570
included in a standard service offer as authorized under this	1571
division, the portion of the standard service offer price	1572
attributable to those costs shall be bypassable by a consumer that	1573
has exercised choice of supplier under section 4928.03 of the	1574
Revised Code, but bypassable only to the extent the commission	1575
determines that the advanced energy technology or facilities	1576
implemented by that supplier are comparable to that implemented by	1577
the utility under section 4928.142 of the Revised Code as of the	1578
issuance of an order under division (D)(5) of this section for the	1579
purpose of the utility's compliance with division (A) of section	1580
4928.142 of the Revised Code.	1581

(2)(a) For the purpose of a utility's initial application	1582
under division (D)(1) of this section, the adjustment for a	1583
particular cost shall be determined using a baseline measure of	1584
cost and associated revenue as of January 1, 2008.	1585

(b) If a utility continues to provide its standard service	1586
offer pursuant to an electric security plan, for any later such	1587
application by the utility, the baseline measure shall be the cost	1588
and associated revenue as determined under the utility's then	1589
existing approved plan.	1590

(3) A standard service offer under division (D)(1) of this	1591
section may specify the standard, factors, or methodology that the	1592
commission shall use for the purpose of division (E)(2)(b) of this	1593
section if the utility, within such timeframe as the commission	1594
shall specify in its order under division (D)(5) of this section,	1595
later files an application pursuant to division (E) of this	1596
section.	1597

(4) Regarding an application filed under division (D)(1) of	1598
this section by a utility that transferred all or part of its	1599
generating facilities to an affiliate of the utility and to the	1600
extent authorized by federal law, the commission may consider	1601
purchased power or other contracts or agreements between the	1602
utility and any of its affiliates or between the utility and the	1603
holding company owning or controlling the utility.	1604

(5) The burden of proof under division (D)(5) of this section	1605
shall be on the utility. The commission by order may approve or	1606
modify and approve a standard service offer under division (D)(1)	1607
of this section if it finds both of the following:	1608

(a) The offer and the prices it establishes are just,	1609
reasonable, and prudent as to each customer class and are in	1610
furtherance of the policy specified in section 4928.02 of the	1611
Revised Code.	1612

(b) Adjustments for construction costs under division	1613
(D)(1)(c) of this section are consistent with section 4909.15 of	1614
the Revised Code.	1615

(c) The utility is in compliance with section 4928.141 of the	1616
Revised Code.	1617

In its order, the commission shall prescribe any requirements	1618
for the utility as the commission considers necessary for the	1619
utility to implement the policy specified in section 4928.02 of	1620
the Revised Code. The order also shall provide a schedule and the	1621
procedural and substantive terms and conditions for periodic	1622
commission review of the approved offer.	1623

(E)(1) A standard service offer proposed under division (C)	1624
of this section, and herein designated a market rate option, shall	1625
require that the utility's standard service offer price be	1626
determined periodically through an open, competitive bidding	1627
process. Prior to the approval of such an offer under division	1628
(E)(2) of this section, the utility shall conduct such competitive	1629
bidding for the purpose of establishing the original price under	1630
the offer.	1631

(2) The burden of proof under division (E)(2) of this section	1632
shall be on the utility. The commission by order shall approve or	1633
modify and approve the standard service offer under division	1634
(E)(1) of this section if the commission determines all of the	1635
following are met:	1636

(a) The utility is in compliance with section 4928.141 of the	1637
Revised Code.	1638

(b) With respect to generation service, the relevant markets	1639
are subject to effective competition. For that purpose and except	1640
as otherwise provided under division (D)(3) of this section, the	1641
commission shall consider the factors prescribed in division (D)	1642
of section 4928.06 of the Revised Code and such other or	1643
additional factors as the commission may prescribe by rule. The	1644
commission shall prescribe by rule the methodology it will use to	1645
evaluate whether the effective competition standard under division	1646
(E)(2)(b) of this section is met.	1647

(c) The standard service offer price for a customer class as	1648
determined under competitive bidding under division (E)(1) of this	1649
section is more favorable than, or at least comparable to, its	1650
price-to-compare for that class. That price-to-compare shall be	1651
the price that the commission shall determine for the comparable	1652
time period and in the manner of an electric security plan under	1653
division (D) of this section:	1654

In its order, the commission shall prescribe any requirements	1655
for the utility as it considers necessary for the utility to	1656
implement the policy specified in section 4928.02 of the Revised	1657
Code. The order also shall provide the procedural and substantive	1658
terms and conditions for periodic commission review of the	1659
approved offer. That review shall provide for the reconciliation	1660
of the standard service offer price to ensure that the price is	1661
just, reasonable, and prudent and in furtherance of the policy	1662
specified in section 4928.02 of the Revised Code.	1663

(F) A utility's standard service offer approved under this	1664
section shall take effect on the date the commission shall specify	1665
in the approval order and, on that date, the newly approved offer	1666
shall supersede the prior standard service offer of the utility.	1667

(G)(1) Nothing in this section precludes a utility for which	1668
a standard service offer under division (D) of this section has	1669
been approved by the commission in accordance with this section	1670
from later filing an application under division (E) of this	1671
section, or vice versa.	1672

(2) The commission has no authority to require a utility, for	1673
which it has ever approved a market rate option standard service	1674
offer under division (E) of this section, to file an application	1675
under division (D) of this section.	1676

(H) The failure of a supplier to provide retail electric	1677
generation service to customers within the certified territory of	1678
the electric distribution utility shall result in the supplier's	1679
customers, after reasonable notice, defaulting to the utility's	1680
standard service offer filed under division (A) of this section	1681
until the customer chooses an alternative supplier. A supplier is	1682
deemed under this division to have failed to provide such service	1683
if the commission finds, after reasonable notice and opportunity	1684
for hearing, that any of the following conditions are met:	1685

(1) The supplier has defaulted on its contracts with	1686
customers, is in receivership, or has filed for bankruptcy.	1687

(2) The supplier is no longer capable of providing the	1688
service.	1689

(3) The supplier is unable to provide delivery to	1690
transmission or distribution facilities for such period of time as	1691
may be reasonably specified by commission rule adopted under	1692
division (A) of section 4928.06 of the Revised Code.	1693

(4) The supplier's certification has been suspended,	1694
conditionally rescinded, or rescinded under division (D) of	1695
section 4928.08 of the Revised Code.	1696

(I) Nothing in this section limits an electric distribution	1697
utility providing competitive retail electric service to electric	1698
load centers within the certified territory of another such	1699
utility.	1700

Sec. 4928.141.  During a proceeding under section 4928.14 of	1701
the Revised Code and upon submission of an appropriate discovery	1702
request, an electric distribution utility shall make available to	1703
the requesting party every contract or agreement that is between	1704
the utility or any of its affiliates and a party to the	1705
proceeding, consumer, electric services company, or political	1706
subdivision and that is relevant to the proceeding, subject to	1707
such protection for proprietary or confidential information as is	1708
determined appropriate by the public utilities commission.	1709

Sec. 4928.142. (A) Subject to division (B) of this section,	1710
an electric distribution utility by the end of 2025 shall provide	1711
a portion of the electricity supply required for its standard	1712
service offer under section 4928.14 of the Revised Code from	1713
advanced energy. That portion shall equal twenty-five per cent of	1714
the total number of kilowatt-hours of electricity supplied by the	1715
utility to any and all electric consumers whose electric load	1716
centers are located within the utility's certified territory.	1717
However, subject to division (B) of this section, nothing in this	1718
section precludes a utility from providing a greater percentage.	1719
The advanced energy supply shall be consistent with the following	1720
requirements:	1721

(1) At least half of the advanced energy implemented by 2025	1722
shall be generated from sustainable resources as defined in	1723
section 3706.01 of the Revised Code and shall include solar power.	1724
The remainder shall be supplied from advanced energy facilities	1725
as defined in divisions (X)(1) to (4) of section 3706.01 of the	1726
Revised Code.	1727

(2) At least half of the advanced energy implemented by the	1728
end of 2025 shall be met through facilities located in this state.	1729

The utility shall comply with division (A) of this section in	1730
a manner that considers available technology, costs, job creation,	1731
and economic impacts. To be counted toward the utility's	1732
compliance with division (A) of this section, the on-site	1733
construction of an advanced energy technology or facility shall be	1734
initiated after the effective date of this section. Any such	1735
technology or facility that complies with that division shall be	1736
and remain counted toward the utility's compliance.	1737

(B)(1) If the commission determines, after notice and	1738
hearing, that the utility has failed to comply with division (A)	1739
of this section, the commission shall issue an order requiring the	1740
utility to comply fully within such time as shall be specified in	1741
the order and shall specify in the order the process and schedule	1742
for verifying to the commission the utility's compliance with the	1743
order.	1744

(2) Full compliance shall not be mandated under division	1745
(B)(1) of this section to the extent that the ratio between the	1746
blended advanced energy and nonadvanced energy price under this	1747
section in 2025 and the portion of that price attributable to	1748
nonadvanced energy exceeds one and three-hundredths.	1749

(3) Only division (B)(2) of section 4928.16 of the Revised	1750
Code applies if the commission determines in an order issued under	1751
division (B)(1) of this section that the utility has failed to	1752
comply with division (A) of this section, or if the commission by	1753
order determines in a later proceeding and after notice and	1754
hearing that the utility has failed to comply with an order issued	1755
under division (B)(1) of this section.	1756

(C) The commission annually shall submit to the general	1757
assembly in accordance with section 101.68 of the Revised Code a	1758
report describing the compliance of electric distribution	1759
utilities with divisions (A) and (B) of this section and any	1760
interim goals or strategy for utility compliance with those	1761
divisions or for encouraging the use of advanced energy in	1762
supplying this state's electricity needs in a manner that	1763
considers available technology, costs, job creation, and economic	1764
impacts. The commission shall allow and consider public comments	1765
on the report prior to its submission to the general assembly.	1766
Nothing in the report shall be binding on any person, including	1767
any utility for the purpose of its compliance with division (A) of	1768
this section, or the enforcement of that provision under division	1769
(B) of this section.	1770

Sec. 4928.17.  (A) Except as otherwise provided in sections	1771
4928.14 and 4928.31 to 4928.40 of the Revised Code and beginning	1772
on the starting date of competitive retail electric service, no	1773
electric utility shall engage in this state, either directly or	1774
through an affiliate, in the businesses of supplying a	1775
noncompetitive retail electric service and supplying a	1776
competitive retail electric service, or in the businesses of	1777
supplying a noncompetitive retail electric service and supplying	1778
a product or service other than retail electric service, unless	1779
the utility implements and operates under a corporate separation	1780
plan that is approved by the public utilities commission under	1781
this section, is consistent with the policy specified in section	1782
4928.02 of the Revised Code, and achieves all of the following:	1783

(1) The plan provides, at minimum, for the provision of the	1784
competitive retail electric service or the nonelectric product or	1785
service through a fully separated affiliate of the utility, and	1786
the plan includes separate accounting requirements, the code of	1787
conduct as ordered by the commission pursuant to a rule it shall	1788
adopt under division (A) of section 4928.06 of the Revised Code,	1789
and such other measures as are necessary to effectuate the policy	1790
specified in section 4928.02 of the Revised Code.	1791

(2) The plan satisfies the public interest in preventing	1792
unfair competitive advantage and preventing the abuse of market	1793
power.	1794

(3) The plan is sufficient to ensure that the utility will	1795
not extend any undue preference or advantage to any affiliate,	1796
division, or part of its own business engaged in the business of	1797
supplying the competitive retail electric service or nonelectric	1798
product or service, including, but not limited to, utility	1799
resources such as trucks, tools, office equipment, office space,	1800
supplies, customer and marketing information, advertising, billing	1801
and mailing systems, personnel, and training, without compensation	1802
based upon fully loaded embedded costs charged to the affiliate;	1803
and to ensure that any such affiliate, division, or part will not	1804
receive undue preference or advantage from any affiliate,	1805
division, or part of the business engaged in business of supplying	1806
the noncompetitive retail electric service. No such utility,	1807
affiliate, division, or part shall extend such undue preference.	1808
Notwithstanding any other division of this section, a utility's	1809
obligation under division (A)(3) of this section shall be	1810
effective January 1, 2000.	1811

(B) The commission may approve, modify and approve, or	1812
disapprove a corporate separation plan filed with the commission	1813
under division (A) of this section. As part of the code of conduct	1814
required under division (A)(1) of this section, the commission	1815
shall adopt rules pursuant to division (A) of section 4928.06 of	1816
the Revised Code regarding corporate separation and procedures for	1817
plan filing and approval. The rules shall include limitations on	1818
affiliate practices solely for the purpose of maintaining a	1819
separation of the affiliate's business from the business of the	1820
utility to prevent unfair competitive advantage by virtue of that	1821
relationship. The rules also shall include an opportunity for any	1822
person having a real and substantial interest in the corporate	1823
separation plan to file specific objections to the plan and	1824
propose specific responses to issues raised in the objections,	1825
which objections and responses the commission shall address in its	1826
final order. Prior to commission approval of the plan, the	1827
commission shall afford a hearing upon those aspects of the plan	1828
that the commission determines reasonably require a hearing. The	1829
commission may reject and require refiling of a substantially	1830
inadequate plan under this section.	1831

(C) The commission shall issue an order approving or	1832
modifying and approving a corporate separation plan under this	1833
section, to be effective on the date specified in the order, only	1834
upon findings that the plan reasonably complies with the	1835
requirements of division (A) of this section and will provide for	1836
ongoing compliance with the policy specified in section 4928.02 of	1837
the Revised Code. However, for good cause shown, the commission	1838
may issue an order approving or modifying and approving a	1839
corporate separation plan under this section that does not comply	1840
with division (A)(1) of this section but complies with such	1841
functional separation requirements as the commission authorizes to	1842
apply for an interim period prescribed in the order, upon a	1843
finding that such alternative plan will provide for ongoing	1844
compliance with the policy specified in section 4928.02 of the	1845
Revised Code.	1846

(D) Any party may seek an amendment to a corporate separation	1847
plan approved under this section, and the commission, pursuant to	1848
a request from any party or on its own initiative, may order as it	1849
considers necessary the filing of an amended corporate separation	1850
plan to reflect changed circumstances.	1851

(E) Notwithstanding section 4905.20, 4905.21, 4905.46, or	1852
4905.48 of the Revised Code, anNo electric utility may divest	1853
itself ofshall sell or transfer any generating asset at any time	1854
facility it owns in whole or in part to any person without prior	1855
commission approval, subject to the provisions of Title XLIX of	1856
the Revised Code relating to the transfer of transmission,	1857
distribution, or ancillary service provided by such generating	1858
asset.	1859

Sec. 4928.20.  (A) The legislative authority of a municipal	1860
corporation may adopt an ordinance, or the board of township	1861
trustees of a township or the board of county commissioners of a	1862
county may adopt a resolution, under which, on or after the	1863
starting date of competitive retail electric service, it may	1864
aggregate in accordance with this section the retail electrical	1865
loads located, respectively, within the municipal corporation,	1866
township, or unincorporated area of the county and, for that	1867
purpose, may enter into service agreements to facilitate for those	1868
loads the sale and purchase of electricity. The legislative	1869
authority or board also may exercise such authority jointly with	1870
any other such legislative authority or board. For customers that	1871
are not mercantile commercial customers, an ordinance or	1872
resolution under this division shall specify whether the	1873
aggregation will occur only with the prior, affirmative consent of	1874
each person owning, occupying, controlling, or using an electric	1875
load center proposed to be aggregated or will occur automatically	1876
for all such persons pursuant to the opt-out requirements of	1877
division (D) of this section. The aggregation of mercantile	1878
commercial customers shall occur only with the prior, affirmative	1879
consent of each such person owning, occupying, controlling, or	1880
using an electric load center proposed to be aggregated. Nothing	1881
in this division, however, authorizes the aggregation of the	1882
retail electric loads of an electric load center, as defined in	1883
section 4933.81 of the Revised Code, that is located in the	1884
certified territory of a nonprofit electric supplier under	1885
sections 4933.81 to 4933.90 of the Revised Code or an electric	1886
load center served by transmission or distribution facilities of a	1887
municipal electric utility.	1888

(B) If an ordinance or resolution adopted under division (A)	1889
of this section specifies that aggregation of customers that are	1890
not mercantile commercial customers will occur automatically as	1891
described in that division, the ordinance or resolution shall	1892
direct the board of elections to submit the question of the	1893
authority to aggregate to the electors of the respective municipal	1894
corporation, township, or unincorporated area of a county at a	1895
special election on the day of the next primary or general	1896
election in the municipal corporation, township, or county. The	1897
legislative authority or board shall certify a copy of the	1898
ordinance or resolution to the board of elections not less than	1899
seventy-five days before the day of the special election. No	1900
ordinance or resolution adopted under division (A) of this section	1901
that provides for an election under this division shall take	1902
effect unless approved by a majority of the electors voting upon	1903
the ordinance or resolution at the election held pursuant to this	1904
division.	1905

(C) Upon the applicable requisite authority under divisions	1906
(A) and (B) of this section, the legislative authority or board	1907
shall develop a plan of operation and governance for the	1908
aggregation program so authorized. Before adopting a plan under	1909
this division, the legislative authority or board shall hold at	1910
least two public hearings on the plan. Before the first hearing,	1911
the legislative authority or board shall publish notice of the	1912
hearings once a week for two consecutive weeks in a newspaper of	1913
general circulation in the jurisdiction. The notice shall	1914
summarize the plan and state the date, time, and location of each	1915
hearing.	1916

(D) No legislative authority or board, pursuant to an	1917
ordinance or resolution under divisions (A) and (B) of this	1918
section that provides for automatic aggregation of customers that	1919
are not mercantile commercial customers as described in division	1920
(A) of this section, shall aggregate the electrical load of any	1921
electric load center located within its jurisdiction unless it in	1922
advance clearly discloses to the person owning, occupying,	1923
controlling, or using the load center that the person will be	1924
enrolled automatically in the aggregation program and will remain	1925
so enrolled unless the person affirmatively elects by a stated	1926
procedure not to be so enrolled. The disclosure shall state	1927
prominently the rates, charges, and other terms and conditions of	1928
enrollment. The stated procedure shall allow any person enrolled	1929
in the aggregation program the opportunity to opt out of the	1930
program up to every twofour years, without paying a switching	1931
fee. Any such person that opts out of the aggregation program	1932
pursuant to the stated procedure shall default to the standard	1933
service offer provided under division (A) of section 4928.14 or	1934
division (D) of section 4928.35 of the Revised Code until the	1935
person chooses an alternative supplier.	1936

(E)(1) With respect to a governmental aggregation for a	1937
municipal corporation that is authorized pursuant to divisions (A)	1938
to (D) of this section, resolutions may be proposed by initiative	1939
or referendum petitions in accordance with sections 731.28 to	1940
731.41 of the Revised Code.	1941

(2) With respect to a governmental aggregation for a township	1942
or the unincorporated area of a county, which aggregation is	1943
authorized pursuant to divisions (A) to (D) of this section,	1944
resolutions may be proposed by initiative or referendum petitions	1945
in accordance with sections 731.28 to 731.40 of the Revised Code,	1946
except that:	1947

(a) The petitions shall be filed, respectively, with the	1948
township fiscal officer or the board of county commissioners, who	1949
shall perform those duties imposed under those sections upon the	1950
city auditor or village clerk.	1951

(b) The petitions shall contain the signatures of not less	1952
than ten per cent of the total number of electors in,	1953
respectively, the township or the unincorporated area of the	1954
county who voted for the office of governor at the preceding	1955
general election for that office in that area.	1956

(F) A governmental aggregator under division (A) of this	1957
section is not a public utility engaging in the wholesale purchase	1958
and resale of electricity, and provision of the aggregated service	1959
is not a wholesale utility transaction. A governmental aggregator	1960
shall be subject to supervision and regulation by the public	1961
utilities commission only to the extent of any competitive retail	1962
electric service it provides and commission authority under this	1963
chapter.	1964

(G) This section does not apply in the case of a municipal	1965
corporation that supplies such aggregated service to electric load	1966
centers to which its municipal electric utility also supplies a	1967
noncompetitive retail electric service through transmission or	1968
distribution facilities the utility singly or jointly owns or	1969
operates.	1970

(H) A governmental aggregator shall not include in its	1971
aggregation the accounts of any of the following:	1972

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

1973

(2) A customer in contract with a certified competitive	1974
retail electric services provider;	1975

(3) A customer that has a special contract with an electric	1976
distribution utility;	1977

(4) A customer that is not located within the governmental	1978
aggregator's governmental boundaries;	1979

(5) Subject to division (C) of section 4928.21 of the Revised	1980
Code, a customer who appears on the "do not aggregate" list	1981
maintained under that section.	1982

Sec. 4928.21.  (A) A customer that desires to remove itself	1983
from the pool of customers eligible to participate in governmental	1984
aggregation under section 4928.20 of the Revised Code may register	1985
with the public utilities commission to appear on the "do not	1986
aggregate" list.	1987

(B) The commission, by rule, shall establish a "do not	1988
aggregate" list. The commission shall maintain the "do not	1989
aggregate" list and make it publicly available on the commission's	1990
web site.	1991

(C) If a customer is enrolled in a governmental aggregation	1992
program at the time the customer first appears on the "do not	1993
aggregate" list, the governmental aggregator shall remove the	1994
customer from the program at the next two-year opt out opportunity	1995
that is available to the customer under division (D) of section	1996
4928.20 of the Revised Code.	1997

Sec. 4928.64.  The public utilities commission shall adopt	1998
rules to establish energy efficiency standards applicable to	1999
electric distribution utilities such that, by 2025, any such	2000
utility shall implement energy efficiency measures that will	2001
result in not less than twenty-five per cent of actual growth in	2002
electric load and not less than ten per cent of total peak demand	2003
being achieved through those measures. The rules shall include a	2004
requirement that an electric distribution utility provide a	2005
customer upon request with three years' consumption data in an	2006
accessible form. Additionally, the rules may provide for	2007
decoupling.	2008

Sec. 4928.68.  The public utilities commission shall employ a	2009
federal energy advocate to monitor the activities of the federal	2010
energy regulatory commission and other federal agencies and	2011
advocate on behalf of the interests of retail electric service	2012
consumers in this state. The attorney general shall represent the	2013
advocate before the federal energy regulatory commission and other	2014
federal agencies. Among other duties assigned to the advocate by	2015
the commission, the advocate shall examine the value of the	2016
participation of this state's electric utilities in regional	2017
transmission organizations and submit a report to the public	2018
utilities commission on whether continued participation of those	2019
utilities is in the interest of those consumers.	2020

Sec. 4928.69.  The public utilities commission shall adopt	2021
rules establishing greenhouse gas emission reporting requirements,	2022
including participation in the climate registry, and carbon	2023
control planning requirements for each electric generating	2024
facility located in this state that emits greenhouse gases,	2025
including facilities in operation on the effective date of this	2026
section.	2027

Section 2.  That existing sections 122.41, 122.451, 3706.01,	2028
3706.02, 3706.03, 3706.04, 3706.041, 3706.05, 3706.06, 3706.07,	2029
3706.08, 3706.09, 3706.10, 3706.11, 3706.12, 3706.13, 3706.14,	2030
3706.15, 3706.16, 3706.17, 3706.18, 4905.31, 4905.40, 4928.02,	2031
4928.05, 4928.14, 4928.17, 4928.20, and 4928.21 of the Revised	2032
Code are hereby repealed.	2033